    [Congressional Bills 110th Congress]
    [From the U.S. Government Publishing Office]
    [H.R. 2419 Enrolled Bill (ENR)]

            H.R.2419

                           One Hundred Tenth Congress

                                     of the

                            United States of America

                              AT THE SECOND SESSION

              Begun and held at the City of Washington on Thursday,
                the third day of January, two thousand and eight

                                     An Act

    To provide for the continuation of agricultural programs through fiscal
                       year 2012, and for other purposes.

        Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled,
    SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
        (a) Short Title.--This Act may be cited as the ``Food,
    Conservation, and Energy Act of 2008''.
        (b) Table of Contents.--The table of contents of this Act is as
    follows:

    Sec. 1. Short title; table of contents.
    Sec. 2. Definition of Secretary.

                           TITLE I--COMMODITY PROGRAMS

    Sec. 1001. Definitions.

            Subtitle A--Direct Payments and Counter-Cyclical Payments

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

       Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

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

                               Subtitle C--Peanuts

    Sec. 1301. Definitions.
    Sec. 1302. Base acres for peanuts for a farm.
    Sec. 1303. Availability of direct payments for peanuts.
    Sec. 1304. Availability of counter-cyclical payments for peanuts.
    Sec. 1305. Producer agreement required as condition on provision of
              payments.
    Sec. 1306. Planting flexibility.
    Sec. 1307. Marketing assistance loans and loan deficiency payments for
              peanuts.
    Sec. 1308. Adjustments of loans.

                                Subtitle D--Sugar

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

                                Subtitle E--Dairy

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

                           Subtitle F--Administration

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

                             TITLE II--CONSERVATION

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

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

                    Subtitle B--Conservation Reserve Program

    Sec. 2101. Extension of conservation reserve program.
    Sec. 2102. Land eligible for enrollment in conservation reserve.
    Sec. 2103. Maximum enrollment of acreage in conservation reserve.
    Sec. 2104. Designation of conservation priority areas.
    Sec. 2105. Treatment of multi-year grasses and legumes.
    Sec. 2106. Revised pilot program for enrollment of wetland and buffer
              acreage in conservation reserve.
    Sec. 2107. Additional duty of participants under conservation reserve
              contracts.
    Sec. 2108. Managed haying, grazing, or other commercial use of forage on
              enrolled land and installation of wind turbines.
    Sec. 2109. Cost sharing payments relating to trees, windbreaks,
              shelterbelts, and wildlife corridors.
    Sec. 2110. Evaluation and acceptance of contract offers, annual rental
              payments, and payment limitations.
    Sec. 2111. Conservation reserve program transition incentives for
              beginning farmers or ranchers and socially disadvantaged
              farmers or ranchers.

                      Subtitle C--Wetlands Reserve Program

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

                  Subtitle D--Conservation Stewardship Program

    Sec. 2301. Conservation stewardship program.

              Subtitle E--Farmland Protection and Grassland Reserve

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

              Subtitle F--Environmental Quality Incentives Program

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

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

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

         Subtitle H--Funding and Administration of Conservation Programs

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

               Subtitle I--Conservation Programs Under Other Laws

    Sec. 2801. Agricultural management assistance program.
    Sec. 2802. Technical assistance under Soil Conservation and Domestic
              Allotment Act.
    Sec. 2803. Small watershed rehabilitation program.
    Sec. 2804. Amendments to Soil and Water Resources Conservation Act of
              1977.
    Sec. 2805. Resource Conservation and Development Program.
    Sec. 2806. Use of funds in Basin Funds for salinity control activities
              upstream of Imperial Dam.
    Sec. 2807. Desert terminal lakes.

                Subtitle J--Miscellaneous Conservation Provisions

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

                                TITLE III--TRADE

                         Subtitle A--Food for Peace Act

    Sec. 3001. Short title.
    Sec. 3002. United States policy.
    Sec. 3003. Food aid to developing countries.
    Sec. 3004. Trade and development assistance.
    Sec. 3005. Agreements regarding eligible countries and private entities.
    Sec. 3006. Use of local currency payments.
    Sec. 3007. General authority.
    Sec. 3008. Provision of agricultural commodities.
    Sec. 3009. Generation and use of currencies by private voluntary
              organizations and cooperatives.
    Sec. 3010. Levels of assistance.
    Sec. 3011. Food Aid Consultative Group.
    Sec. 3012. Administration.
    Sec. 3013. Assistance for stockpiling and rapid transportation,
              delivery, and distribution of shelf-stable prepackaged foods.
    Sec. 3014. General authorities and requirements.
    Sec. 3015. Definitions.
    Sec. 3016. Use of Commodity Credit Corporation.
    Sec. 3017. Administrative provisions.
    Sec. 3018. Consolidation and modification of annual reports regarding
              agricultural trade issues.
    Sec. 3019. Expiration of assistance.
    Sec. 3020. Authorization of appropriations.
    Sec. 3021. Minimum level of nonemergency food assistance.
    Sec. 3022. Coordination of foreign assistance programs.
    Sec. 3023. Micronutrient fortification programs.
    Sec. 3024. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.

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

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

                            Subtitle C--Miscellaneous

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

                           Subtitle D--Softwood Lumber

    Sec. 3301. Softwood lumber.

                               TITLE IV--NUTRITION

                         Subtitle A--Food Stamp Program

                 PART I--Renaming of Food Stamp Act and Program

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

                          PART II--Benefit Improvements

    Sec. 4101. Exclusion of certain military payments from income.
    Sec. 4102. Strengthening the food purchasing power of low-income
              Americans.
    Sec. 4103. Supporting working families with child care expenses.
    Sec. 4104. Asset indexation, education, and retirement accounts.
    Sec. 4105. Facilitating simplified reporting.
    Sec. 4106. Transitional benefits option.
    Sec. 4107. Increasing the minimum benefit.
    Sec. 4108. Employment, training, and job retention.

                          PART III--Program Operations

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

                           PART IV--Program Integrity

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

                              PART V--Miscellaneous

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

                     Subtitle B--Food Distribution Programs

                    PART I--Emergency Food Assistance Program

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

            PART II--Food Distribution Program on Indian Reservations

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

                  PART III--Commodity Supplemental Food Program

    Sec. 4221. Commodity supplemental food program.

                PART IV--Senior Farmers' Market Nutrition Program

    Sec. 4231. Seniors farmers' market nutrition program.

                Subtitle C--Child Nutrition and Related Programs

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

                            Subtitle D--Miscellaneous

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

                                 TITLE V--CREDIT

                        Subtitle A--Farm Ownership Loans

    Sec. 5001. Direct loans.
    Sec. 5002. Conservation loan and loan guarantee program.
    Sec. 5003. Limitations on amount of farm ownership loans.
    Sec. 5004. Down payment loan program.
    Sec. 5005. Beginning farmer or rancher and socially disadvantaged farmer
              or rancher contract land sales program.

                           Subtitle B--Operating Loans

    Sec. 5101. Farming experience as eligibility requirement.
    Sec. 5102. Limitations on amount of operating loans.
    Sec. 5103. Suspension of limitation on period for which borrowers are
              eligible for guaranteed assistance.

                           Subtitle C--Emergency Loans

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

                      Subtitle D--Administrative Provisions

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

                             Subtitle E--Farm Credit

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

                            Subtitle F--Miscellaneous

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

                           TITLE VI--RURAL DEVELOPMENT

             Subtitle A--Consolidated Farm and Rural Development Act

    Sec. 6001. Water, waste disposal, and wastewater facility grants.
    Sec. 6002. SEARCH grants.
    Sec. 6003. Rural business opportunity grants.
    Sec. 6004. Child day care facility grants, loans, and loan guarantees.
    Sec. 6005. Community facility grants to advance broadband.
    Sec. 6006. Rural water and wastewater circuit rider program.
    Sec. 6007. Tribal College and University essential community facilities.
    Sec. 6008. Emergency and imminent community water assistance grant
              program.
    Sec. 6009. Water systems for rural and native villages in Alaska.
    Sec. 6010. Grants to nonprofit organizations to finance the
              construction, refurbishing, and servicing of individually-
              owned household water well systems in rural areas for
              individuals with low or moderate incomes.
    Sec. 6011. Interest rates for water and waste disposal facilities loans.
    Sec. 6012. Cooperative equity security guarantee.
    Sec. 6013. Rural cooperative development grants.
    Sec. 6014. Grants to broadcasting systems.
    Sec. 6015. Locally or regionally produced agricultural food products.
    Sec. 6016. Appropriate technology transfer for rural areas.
    Sec. 6017. Rural economic area partnership zones.
    Sec. 6018. Definitions.
    Sec. 6019. National rural development partnership.
    Sec. 6020. Historic barn preservation.
    Sec. 6021. Grants for NOAA weather radio transmitters.
    Sec. 6022. Rural microentrepreneur assistance program.
    Sec. 6023. Grants for expansion of employment opportunities for
              individuals with disabilities in rural areas.
    Sec. 6024. Health care services.
    Sec. 6025. Delta Regional Authority.
    Sec. 6026. Northern Great Plains Regional Authority.
    Sec. 6027. Rural Business Investment Program.
    Sec. 6028. Rural Collaborative Investment Program.
    Sec. 6029. Funding of pending rural development loan and grant
              applications.

                  Subtitle B--Rural Electrification Act of 1936

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

                            Subtitle C--Miscellaneous

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

                     Subtitle D--Housing Assistance Council

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

                     TITLE VII--RESEARCH AND RELATED MATTERS

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

    Sec. 7101. Definitions.
    Sec. 7102. National Agricultural Research, Extension, Education, and
              Economics Advisory Board.
    Sec. 7103. Specialty crop committee report.
    Sec. 7104. Renewable energy committee.
    Sec. 7105. Veterinary medicine loan repayment.
    Sec. 7106. Eligibility of University of the District of Columbia for
              grants and fellowships for food and agricultural sciences
              education.
    Sec. 7107. Grants to 1890 schools to expand extension capacity.
    Sec. 7108. Expansion of food and agricultural sciences awards.
    Sec. 7109. Grants and fellowships for food and agricultural sciences
              education.
    Sec. 7110. Grants for research on production and marketing of alcohols
              and industrial hydrocarbons from agricultural commodities and
              forest products.
    Sec. 7111. Policy research centers.
    Sec. 7112. Education grants to Alaska Native-serving institutions and
              Native Hawaiian-serving institutions.
    Sec. 7113. Emphasis of human nutrition initiative.
    Sec. 7114. Human nutrition intervention and health promotion research
              program.
    Sec. 7115. Pilot research program to combine medical and agricultural
              research.
    Sec. 7116. Nutrition education program.
    Sec. 7117. Continuing animal health and disease research programs.
    Sec. 7118. Cooperation among eligible institutions.
    Sec. 7119. Appropriations for research on national or regional problems.
    Sec. 7120. Animal health and disease research program.
    Sec. 7121. Authorization level for extension at 1890 land-grant
              colleges.
    Sec. 7122. Authorization level for agricultural research at 1890 land-
              grant colleges.
    Sec. 7123. Grants to upgrade agricultural and food sciences facilities
              at 1890 land-grant colleges, including Tuskegee University.
    Sec. 7124. Grants to upgrade agriculture and food sciences facilities at
              the District of Columbia land-grant university.
    Sec. 7125. Grants to upgrade agriculture and food sciences facilities
              and equipment at insular area land-grant institutions.
    Sec. 7126. National research and training virtual centers.
    Sec. 7127. Matching funds requirement for research and extension
              activities of 1890 institutions.
    Sec. 7128. Hispanic-serving institutions.
    Sec. 7129. Hispanic-serving agricultural colleges and universities.
    Sec. 7130. International agricultural research, extension, and
              education.
    Sec. 7131. Competitive grants for international agricultural science and
              education programs.
    Sec. 7132. Administration.
    Sec. 7133. Research equipment grants.
    Sec. 7134. University research.
    Sec. 7135. Extension Service.
    Sec. 7136. Supplemental and alternative crops.
    Sec. 7137. New Era Rural Technology Program.
    Sec. 7138. Capacity building grants for NLGCA Institutions.
    Sec. 7139. Borlaug international agricultural science and technology
              fellowship program.
    Sec. 7140. Aquaculture assistance programs.
    Sec. 7141. Rangeland research grants.
    Sec. 7142. Special authorization for biosecurity planning and response.
    Sec. 7143. Resident instruction and distance education grants program
              for insular area institutions of higher education.

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

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

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

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

                             Subtitle D--Other Laws

    Sec. 7401. Critical Agricultural Materials Act.
    Sec. 7402. Equity in Educational Land-Grant Status Act of 1994.
    Sec. 7403. Smith-Lever Act.
    Sec. 7404. Hatch Act of 1887.
    Sec. 7405. Agricultural Experiment Station Research Facilities Act.
    Sec. 7406. Agriculture and food research initiative.
    Sec. 7407. Agricultural Risk Protection Act of 2000.
    Sec. 7408. Exchange or sale authority.
    Sec. 7409. Enhanced use lease authority pilot program.
    Sec. 7410. Beginning farmer and rancher development program.
    Sec. 7411. Public education regarding use of biotechnology in producing
              food for human consumption.
    Sec. 7412. McIntire-Stennis Cooperative Forestry Act.
    Sec. 7413. Renewable Resources Extension Act of 1978.
    Sec. 7414. National Aquaculture Act of 1980.
    Sec. 7415. Construction of Chinese Garden at the National Arboretum.
    Sec. 7416. National Agricultural Research, Extension, and Teaching
              Policy Act Amendments of 1985.
    Sec. 7417. Eligibility of University of the District of Columbia for
              certain land-grant university assistance.

                            Subtitle E--Miscellaneous

                           PART I--General Provisions

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

                   PART II--Research, Education, and Economics

    Sec. 7511. Research, education, and economics.

                    PART III--New Grant and Research Programs

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

                              TITLE VIII--FORESTRY

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

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

             Subtitle B--Cultural and Heritage Cooperation Authority

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

              Subtitle C--Amendments to Other Forestry-Related Laws

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

         Subtitle D--Boundary Adjustments and Land Conveyance Provisions

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

                      Subtitle E--Miscellaneous Provisions

    Sec. 8401. Qualifying timber contract options.
    Sec. 8402. Hispanic-serving institution agricultural land national
              resources leadership program.

                                TITLE IX--ENERGY

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

                  TITLE X--HORTICULTURE AND ORGANIC AGRICULTURE

    Sec. 10001. Definitions.

               Subtitle A--Horticulture Marketing and Information

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

                     Subtitle B--Pest and Disease Management

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

                         Subtitle C--Organic Agriculture

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

                            Subtitle D--Miscellaneous

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

                               TITLE XI--LIVESTOCK

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

           TITLE XII--CROP INSURANCE AND DISASTER ASSISTANCE PROGRAMS

               Subtitle A--Crop Insurance and Disaster Assistance

    Sec. 12001. Definition of organic crop.
    Sec. 12002. General powers.
    Sec. 12003. Reduction in loss ratio.
    Sec. 12004. Premiums adjustments.
    Sec. 12005. Controlled business insurance.
    Sec. 12006. Administrative fee.
    Sec. 12007. Time for payment.
    Sec. 12008. Catastrophic coverage reimbursement rate.
    Sec. 12009. Grain sorghum price election.
    Sec. 12010. Premium reduction authority.
    Sec. 12011. Enterprise and whole farm units.
    Sec. 12012. Payment of portion of premium for area revenue plans.
    Sec. 12013. Denial of claims.
    Sec. 12014. Settlement of crop insurance claims on farm-stored
              production.
    Sec. 12015. Time for reimbursement.
    Sec. 12016. Reimbursement rate.
    Sec. 12017. Renegotiation of Standard Reinsurance Agreement.
    Sec. 12018. Change in due date for Corporation payments for underwriting
              gains.
    Sec. 12019. Malting barley.
    Sec. 12020. Crop production on native sod.
    Sec. 12021. Information management.
    Sec. 12022. Research and development.
    Sec. 12023. Contracts for additional policies and studies.
    Sec. 12024. Funding from insurance fund.
    Sec. 12025. Pilot programs.
    Sec. 12026. Risk management education for beginning farmers or ranchers.
    Sec. 12027. Coverage for aquaculture under noninsured crop assistance
              program.
    Sec. 12028. Increase in service fees for noninsured crop assistance
              program.
    Sec. 12029. Determination of certain sweet potato production.
    Sec. 12030. Declining yield report.
    Sec. 12031. Definition of basic unit.
    Sec. 12032. Crop insurance mediation.
    Sec. 12033. Supplemental agricultural disaster assistance.
    Sec. 12034. Fisheries disaster assistance.

                Subtitle B--Small Business Disaster Loan Program

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

                     PART I--Disaster Planning and Response

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

                            PART II--Disaster Lending

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

                             PART III--Miscellaneous

    Sec. 12091. Reports on disaster assistance.

                          TITLE XIII--COMMODITY FUTURES

    Sec. 13001. Short title.

                         Subtitle A--General Provisions

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

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

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

                            TITLE XIV--MISCELLANEOUS

       Subtitle A--Socially Disadvantaged Producers and Limited Resource
                                    Producers

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

                        Subtitle B--Agricultural Security

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

                        Chapter 1--Agricultural Security

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

                           Chapter 2--Other Provisions

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

                   Subtitle C--Other Miscellaneous Provisions

    Sec. 14201. Cotton classification services.
    Sec. 14202. Designation of States for cotton research and promotion.
    Sec. 14203. Grants to reduce production of methamphetamines from
              anhydrous ammonia.
    Sec. 14204. Grants to improve supply, stability, safety, and training of
              agricultural labor force.
    Sec. 14205. Amendment to the Right to Financial Privacy Act of 1978.
    Sec. 14206. Report on stored quantities of propane.
    Sec. 14207. Prohibitions on dog fighting ventures.
    Sec. 14208. Department of Agriculture conference transparency.
    Sec. 14209. Federal Insecticide, Fungicide, and Rodenticide Act
              amendments.
    Sec. 14210. Importation of live dogs.
    Sec. 14211. Permanent debarment from participation in Department of
              Agriculture programs for fraud.
    Sec. 14212. Prohibition on closure or relocation of county offices for
              the Farm Service Agency.
    Sec. 14213. USDA Graduate School.
    Sec. 14214. Fines for violations of the Animal Welfare Act.
    Sec. 14215. Definition of central filing system.
    Sec. 14216. Consideration of proposed recommendations of study on use of
              cats and dogs in Federal research.
    Sec. 14217. Regional economic and infrastructure development.
    Sec. 14218. Coordinator for chronically underserved rural areas.
    Sec. 14219. Elimination of statute of limitations applicable to
              collection of debt by administrative offset.
    Sec. 14220. Availability of excess and surplus computers in rural areas.
    Sec. 14221. Repeal of section 3068 of the Water Resources Development
              Act of 2007.
    Sec. 14222. Domestic food assistance programs.
    Sec. 14223. Technical correction.

                       TITLE XV--TRADE AND TAX PROVISIONS

    Sec. 15001. Short title; etc.

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

    Sec. 15101. Supplemental agricultural disaster assistance.

             Subtitle B--Revenue Provisions for Agriculture Programs

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

                           Subtitle C--Tax Provisions

                              PART I--Conservation

               subpart a--land and species preservation provisions

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

                          subpart b--timber provisions

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

                           PART II--Energy Provisions

                          subpart a--cellulosic biofuel

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

                          subpart b--revenue provisions

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

                        PART III--Agricultural Provisions

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

                        PART IV--Other Revenue Provisions

    Sec. 15351. Limitation on excess farm losses of certain taxpayers.
    Sec. 15352. Modification to optional method of computing net earnings
              from self-employment.
    Sec. 15353. Information reporting for Commodity Credit Corporation
              transactions.

                      PART V--Protection of Social Security

    Sec. 15361. Protection of social security.

                          Subtitle D--Trade Provisions

                   PART I--Extension of Certain Trade Benefits

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

                     PART II--Miscellaneous Trade Provisions

    Sec. 15421. Unused merchandise drawback.
    Sec. 15422. Requirements relating to determination of transaction value
              of imported merchandise.
    SEC. 2. DEFINITION OF SECRETARY.
        In this Act, the term ``Secretary'' means the Secretary of
    Agriculture.

                          TITLE I--COMMODITY PROGRAMS

    SEC. 1001. DEFINITIONS.
        In this title (other than subtitle C):
            (1) Average crop revenue election payment.--The term ``average
        crop revenue election payment'' means a payment made to producers
        on a farm under section 1105.
            (2) Base acres.--
                (A) In general.--The term ``base acres'', with respect to a
            covered commodity on a farm, means the number of acres
            established under section 1101 of the Farm Security and Rural
            Investment Act of 2002 (7 U.S.C. 7911) as in effect on
            September 30, 2007, subject to any adjustment under section
            1101 of this Act.
                (B) Peanuts.--The term ``base acres for peanuts'' has the
            meaning given the term in section 1301.
            (3) Counter-cyclical payment.--The term ``counter-cyclical
        payment'' means a payment made to producers on a farm under section
        1104.
            (4) Covered commodity.--The term ``covered commodity'' means
        wheat, corn, grain sorghum, barley, oats, upland cotton, long grain
        rice, medium grain rice, pulse crops, soybeans, and other oilseeds.
            (5) Direct payment.--The term ``direct payment'' means a
        payment made to producers on a farm under section 1103.
            (6) Effective price.--The term ``effective price'', with
        respect to a covered commodity for a crop year, means the price
        calculated by the Secretary under section 1104 to determine whether
        counter-cyclical payments are required to be made for that crop
        year.
            (7) Extra long staple cotton.--The term ``extra long staple
        cotton'' means cotton that--
                (A) is produced from pure strain varieties of the
            Barbadense species or any hybrid of the species, or other
            similar types of extra long staple cotton, designated by the
            Secretary, having characteristics needed for various end uses
            for which United States upland cotton is not suitable and grown
            in irrigated cotton-growing regions of the United States
            designated by the Secretary or other areas designated by the
            Secretary as suitable for the production of the varieties or
            types; and
                (B) is ginned on a roller-type gin or, if authorized by the
            Secretary, ginned on another type gin for experimental
            purposes.
            (8) Loan commodity.--The term ``loan commodity'' means wheat,
        corn, grain sorghum, barley, oats, upland cotton, extra long staple
        cotton, long grain rice, medium grain rice, soybeans, other
        oilseeds, graded wool, nongraded wool, mohair, honey, dry peas,
        lentils, small chickpeas, and large chickpeas.
            (9) Medium grain rice.--The term ``medium grain rice'' includes
        short grain rice.
            (10) Other oilseed.--The term ``other oilseed'' means a crop of
        sunflower seed, rapeseed, canola, safflower, flaxseed, mustard
        seed, crambe, sesame seed, or any oilseed designated by the
        Secretary.
            (11) Payment acres.--The term ``payment acres'' means, in the
        case of direct payments and counter-cyclical payments--
                (A) except as provided in subparagraph (B), 85 percent of
            the base acres of a covered commodity on a farm on which direct
            payments or counter-cyclical payments are made; and
                (B) in the case of direct payments for each of the 2009
            through 2011 crop years, 83.3 percent of the base acres for the
            covered commodity on a farm on which direct payments are made.
            (12) Payment yield.--The term ``payment yield'' means the yield
        established for direct payments and the yield established for
        counter-cyclical payments under section 1102 of the Farm Security
        and Rural Investment Act of 2002 (7 U.S.C. 7912) as in effect on
        September 30, 2007, or under section 1102 of this Act, for a farm
        for a covered commodity.
            (13) Producer.--
                (A) In general.--The term ``producer'' means an owner,
            operator, landlord, tenant, or sharecropper that shares in the
            risk of producing a crop and is entitled to share in the crop
            available for marketing from the farm, or would have shared had
            the crop been produced.
                (B) Hybrid seed.--In determining whether a grower of hybrid
            seed is a producer, the Secretary shall--
                    (i) not take into consideration the existence of a
                hybrid seed contract; and
                    (ii) ensure that program requirements do not adversely
                affect the ability of the grower to receive a payment under
                this title.
            (14) Pulse crop.--The term ``pulse crop'' means dry peas,
        lentils, small chickpeas, and large chickpeas.
            (15) State.--The term ``State'' means--
                (A) a State;
                (B) the District of Columbia;
                (C) the Commonwealth of Puerto Rico; and
                (D) any other territory or possession of the United States.
            (16) Target price.--The term ``target price'' means the price
        per bushel, pound, or hundredweight (or other appropriate unit) of
        a covered commodity used to determine the payment rate for counter-
        cyclical payments.
            (17) United states.--The term ``United States'', when used in a
        geographical sense, means all of the States.
            (18) United states premium factor.--The term ``United States
        Premium Factor'' means the percentage by which the difference in
        the United States loan schedule premiums for Strict Middling (SM)
        1\1/8\-inch upland cotton and for Middling (M) 1\3/32\-inch upland
        cotton exceeds the difference in the applicable premiums for
        comparable international qualities.

           Subtitle A--Direct Payments and Counter-Cyclical Payments

    SEC. 1101. BASE ACRES.
        (a) Adjustment of Base Acres.--
            (1) In general.--The Secretary shall provide for an adjustment,
        as appropriate, in the base acres for covered commodities for a
        farm whenever any of the following circumstances occurs:
                (A) A conservation reserve contract entered into under
            section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831)
            with respect to the farm expires or is voluntarily terminated,
            or was terminated or expired during the period beginning on
            October 1, 2007, and ending on the date of enactment of this
            Act.
                (B) Cropland is released from coverage under a conservation
            reserve contract by the Secretary, or was released during the
            period beginning on October 1, 2007, and ending on the date of
            enactment of this Act.
                (C) The producer has eligible pulse crop acreage, which
            shall be determined in the same manner as eligible oilseed
            acreage under section 1101(a)(2) of the Farm Security and Rural
            Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
                (D) The producer has eligible oilseed acreage as the result
            of the Secretary designating additional oilseeds, which shall
            be determined in the same manner as eligible oilseed acreage
            under section 1101(a)(2) of the Farm Security and Rural
            Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
            (2) Special conservation reserve acreage payment rules.--For
        the crop year in which a base acres adjustment under subparagraph
        (A) or (B) of paragraph (1) is first made, the owner of the farm
        shall elect to receive either direct payments and counter-cyclical
        payments with respect to the acreage added to the farm under this
        subsection or a prorated payment under the conservation reserve
        contract, but not both.
        (b) Prevention of Excess Base Acres.--
            (1) Required reduction.--If the sum of the base acres for a
        farm, together with the acreage described in paragraph (2) exceeds
        the actual cropland acreage of the farm, the Secretary shall reduce
        the base acres for 1 or more covered commodities for the farm or
        the base acres for peanuts for the farm so that the sum of the base
        acres and acreage described in paragraph (2) does not exceed the
        actual cropland acreage of the farm.
            (2) Other acreage.--For purposes of paragraph (1), the
        Secretary shall include the following:
                (A) Any base acres for peanuts for the farm.
                (B) Any acreage on the farm enrolled in the conservation
            reserve program or wetlands reserve program under chapter 1 of
            subtitle D of title XII of the Food Security Act of 1985 (16
            U.S.C. 3830 et seq.).
                (C) Any other acreage on the farm enrolled in a Federal
            conservation program for which payments are made in exchange
            for not producing an agricultural commodity on the acreage.
                (D) Any eligible pulse crop acreage, which shall be
            determined in the same manner as eligible oilseed acreage under
            section 1101(a)(2) of the Farm Security and Rural Investment
            Act of 2002 (7 U.S.C. 7911(a)(2)).
                (E) If the Secretary designates additional oilseeds, any
            eligible oilseed acreage, which shall be determined in the same
            manner as eligible oilseed acreage under section 1101(a)(2) of
            the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
            7911(a)(2)).
            (3) Selection of acres.--The Secretary shall give the owner of
        the farm the opportunity to select the base acres for a covered
        commodity or the base acres for peanuts for the farm against which
        the reduction required by paragraph (1) will be made.
            (4) Exception for double-cropped acreage.--In applying
        paragraph (1), the Secretary shall make an exception in the case of
        double cropping, as determined by the Secretary.
            (5) Coordinated application of requirements.--The Secretary
        shall take into account section 1302(b) when applying the
        requirements of this subsection.
        (c) Reduction in Base Acres.--
            (1) Reduction at option of owner.--
                (A) In general.--The owner of a farm may reduce, at any
            time, the base acres for any covered commodity for the farm.
                (B) Effect of reduction.--A reduction under subparagraph
            (A) shall be permanent and made in a manner prescribed by the
            Secretary.
            (2) Required action by secretary.--
                (A) In general.--The Secretary shall proportionately reduce
            base acres on a farm for covered commodities for land that has
            been subdivided and developed for multiple residential units or
            other nonfarming uses if the size of the tracts and the density
            of the subdivision is such that the land is unlikely to return
            to the previous agricultural use, unless the producers on the
            farm demonstrate that the land--
                    (i) remains devoted to commercial agricultural
                production; or
                    (ii) is likely to be returned to the previous
                agricultural use.
                (B) Requirement.--The Secretary shall establish procedures
            to identify land described in subparagraph (A).
            (3) Review and report.--Each year, to ensure, to the maximum
        extent practicable, that payments are received only by producers,
        the Secretary shall submit to Congress a report that describes the
        results of the actions taken under paragraph (2).
        (d) Treatment of Farms With Limited Base Acres.--
            (1) Prohibition on payments.--Except as provided in paragraph
        (2) and notwithstanding any other provision of this title, a
        producer on a farm may not receive direct payments, counter-
        cyclical payments, or average crop revenue election payments if the
        sum of the base acres of the farm is 10 acres or less, as
        determined by the Secretary.
            (2) Exceptions.--Paragraph (1) shall not apply to a farm owned
        by--
                (A) a socially disadvantaged farmer or rancher (as defined
            in section 355(e) of the Consolidated Farm and Rural
            Development Act (7 U.S.C. 2003(e)); or
                (B) a limited resource farmer or rancher, as defined by the
            Secretary.
            (3) Data collection and publication.--The Secretary shall--
                (A) collect and publish segregated data and survey
            information about the farm profiles, utilization of land, and
            crop production; and
                (B) perform an evaluation on the supply and price of fruits
            and vegetables based on the effects of suspension of base acres
            under this section.
    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 or eligible pulse crop for which a payment
    yield was not established under section 1102 of the Farm Security and
    Rural Investment Act of 2002 (7 U.S.C. 7912) in accordance with this
    section.
        (b) Payment Yields for Designated Oilseeds and Eligible Pulse
    Crops.--
            (1) Determination of average yield.--In the case of designated
        oilseeds and eligible pulse crops, the Secretary shall determine
        the average yield per planted acre for the designated oilseed or
        pulse crop on a farm for the 1998 through 2001 crop years,
        excluding any crop year in which the acreage planted to the
        designated oilseed or pulse crop was zero.
            (2) Adjustment for payment yield.--
                (A) In general.--The payment yield for a farm for a
            designated oilseed or eligible pulse crop shall be equal to the
            product of the following:
                    (i) The average yield for the designated oilseed or
                pulse crop determined under paragraph (1).
                    (ii) The ratio resulting from dividing the national
                average yield for the designated oilseed or pulse crop for
                the 1981 through 1985 crops by the national average yield
                for the designated oilseed or pulse crop for the 1998
                through 2001 crops.
                (B) No national average yield information available.--To
            the extent that national average yield information for a
            designated oilseed or pulse crop is not available, the
            Secretary shall use such information as the Secretary
            determines to be fair and equitable to establish a national
            average yield under this section.
            (3) Use of partial county average yield.--If the yield per
        planted acre for a crop of a designated oilseed or pulse crop for a
        farm for any of the 1998 through 2001 crop years was less than 75
        percent of the county yield for that designated oilseed or pulse
        crop, the Secretary shall assign a yield for that crop year equal
        to 75 percent of the county yield for the purpose of determining
        the average under paragraph (1).
            (4) No historic yield data available.--In the case of
        establishing yields for designated oilseeds and eligible pulse
        crops, if historic yield data is not available, the Secretary shall
        use the ratio for dry peas calculated under paragraph (2)(A)(ii) in
        determining the yields for designated oilseeds and eligible pulse
        crops, as determined to be fair and equitable by the Secretary.
    SEC. 1103. AVAILABILITY OF DIRECT PAYMENTS.
        (a) Payment Required.--For each of the 2008 through 2012 crop years
    of each covered commodity (other than pulse crops), the Secretary shall
    make direct payments to producers on farms for which base acres and
    payment yields are established.
        (b) Payment Rate.--Except as provided in section 1105, the payment
    rates used to make direct payments with respect to covered commodities
    for a crop year shall be as follows:
            (1) Wheat, $0.52 per bushel.
            (2) Corn, $0.28 per bushel.
            (3) Grain sorghum, $0.35 per bushel.
            (4) Barley, $0.24 per bushel.
            (5) Oats, $0.024 per bushel.
            (6) Upland cotton, $0.0667 per pound.
            (7) Long grain rice, $2.35 per hundredweight.
            (8) Medium grain rice, $2.35 per hundredweight.
            (9) Soybeans, $0.44 per bushel.
            (10) Other oilseeds, $0.80 per hundredweight.
        (c) Payment Amount.--The amount of the direct payment to be paid to
    the producers on a farm for a covered commodity for a crop year shall
    be equal to the product of the following:
            (1) The payment rate specified in subsection (b).
            (2) The payment acres of the covered commodity on the farm.
            (3) The payment yield for the covered commodity for the farm.
        (d) Time for Payment.--
            (1) In general.--Except as provided in paragraph (2), in the
        case of each of the 2008 through 2012 crop years, the Secretary may
        not make direct payments before October 1 of the calendar year in
        which the crop of the covered commodity is harvested.
            (2) Advance payments.--
                (A) Option.--
                    (i) In general.--At the option of the producers on a
                farm, the Secretary shall pay in advance up to 22 percent
                of the direct payment for a covered commodity for any of
                the 2008 through 2011 crop years to the producers on a
                farm.
                    (ii) 2008 crop year.--If the producers on a farm elect
                to receive advance direct payments under clause (i) for a
                covered commodity for the 2008 crop year, as soon as
                practicable after the election, the Secretary shall make
                the advance direct payment to the producers on the farm.
                (B) Month.--
                    (i) Selection.--Subject to clauses (ii) and (iii), the
                producers on a farm shall select the month during which the
                advance payment for a crop year will be made.
                    (ii) Options.--The month selected may be any month
                during the period--

                        (I) beginning on December 1 of the calendar year
                    before the calendar year in which the crop of the
                    covered commodity is harvested; and
                        (II) ending during the month within which the
                    direct payment would otherwise be made.

                    (iii) Change.--The producers on a farm may change the
                selected month for a subsequent advance payment by
                providing advance notice to the Secretary.
            (3) Repayment of advance payments.--If a producer on a farm
        that receives an advance direct payment for a crop year ceases to
        be a producer on that farm, or the extent to which the producer
        shares in the risk of producing a crop changes, before the date the
        remainder of the direct payment is made, the producer shall be
        responsible for repaying the Secretary the applicable amount of the
        advance payment, as determined by the Secretary.
    SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.
        (a) Payment Required.--Except as provided in section 1105, for each
    of the 2008 through 2012 crop years for each covered commodity, the
    Secretary shall make counter-cyclical payments to producers on farms
    for which payment yields and base acres are established with respect to
    the covered commodity if the Secretary determines that the effective
    price for the covered commodity is less than the target price for the
    covered commodity.
        (b) Effective Price.--
            (1) Covered commodities other than rice.--Except as provided in
        paragraph (2), for purposes of subsection (a), the effective price
        for a covered commodity is equal to the sum of the following:
                (A) The higher of the following:
                    (i) The national average market price received by
                producers during the 12-month marketing year for the
                covered commodity, as determined by the Secretary.
                    (ii) The national average loan rate for a marketing
                assistance loan for the covered commodity in effect for the
                applicable period under subtitle B.
                (B) The payment rate in effect for the covered commodity
            under section 1103 for the purpose of making direct payments
            with respect to the covered commodity.
            (2) Rice.--In the case of long grain rice and medium grain
        rice, for purposes of subsection (a), the effective price for each
        type or class of rice is equal to the sum of the following:
                (A) The higher of the following:
                    (i) The national average market price received by
                producers during the 12-month marketing year for the type
                or class of rice, as determined by the Secretary.
                    (ii) The national average loan rate for a marketing
                assistance loan for the type or class of rice in effect for
                the applicable period under subtitle B.
                (B) The payment rate in effect for the type or class of
            rice under section 1103 for the purpose of making direct
            payments with respect to the type or class of rice.
        (c) Target Price.--
            (1) 2008 crop year.--For purposes of the 2008 crop year, the
        target prices for covered commodities shall be as follows:
                (A) Wheat, $3.92 per bushel.
                (B) Corn, $2.63 per bushel.
                (C) Grain sorghum, $2.57 per bushel.
                (D) Barley, $2.24 per bushel.
                (E) Oats, $1.44 per bushel.
                (F) Upland cotton, $0.7125 per pound.
                (G) Long grain rice, $10.50 per hundredweight.
                (H) Medium grain rice, $10.50 per hundredweight.
                (I) Soybeans, $5.80 per bushel.
                (J) Other oilseeds, $10.10 per hundredweight.
            (2) 2009 crop year.--For purposes of the 2009 crop year, the
        target prices for covered commodities shall be as follows:
                (A) Wheat, $3.92 per bushel.
                (B) Corn, $2.63 per bushel.
                (C) Grain sorghum, $2.57 per bushel.
                (D) Barley, $2.24 per bushel.
                (E) Oats, $1.44 per bushel.
                (F) Upland cotton, $0.7125 per pound.
                (G) Long grain rice, $10.50 per hundredweight.
                (H) Medium grain rice, $10.50 per hundredweight.
                (I) Soybeans, $5.80 per bushel.
                (J) Other oilseeds, $10.10 per hundredweight.
                (K) Dry peas, $8.32 per hundredweight.
                (L) Lentils, $12.81 per hundredweight.
                (M) Small chickpeas, $10.36 per hundredweight.
                (N) Large chickpeas, $12.81 per hundredweight.
            (3) Subsequent crop years.--For purposes of each of the 2010
        through 2012 crop years, the target prices for covered commodities
        shall be as follows:
                (A) Wheat, $4.17 per bushel.
                (B) Corn, $2.63 per bushel.
                (C) Grain sorghum, $2.63 per bushel.
                (D) Barley, $2.63 per bushel.
                (E) Oats, $1.79 per bushel.
                (F) Upland cotton, $0.7125 per pound.
                (G) Long grain rice, $10.50 per hundredweight.
                (H) Medium grain rice, $10.50 per hundredweight.
                (I) Soybeans, $6.00 per bushel.
                (J) Other oilseeds, $12.68 per hundredweight.
                (K) Dry peas, $8.32 per hundredweight.
                (L) Lentils, $12.81 per hundredweight.
                (M) Small chickpeas, $10.36 per hundredweight.
                (N) Large chickpeas, $12.81 per hundredweight.
        (d) Payment Rate.--The payment rate used to make counter-cyclical
    payments with respect to a covered commodity for a crop year shall be
    equal to the difference between--
            (1) the target price for the covered commodity; and
            (2) the effective price determined under subsection (b) for the
        covered commodity.
        (e) Payment Amount.--If counter-cyclical payments are required to
    be paid under this section for any of the 2008 through 2012 crop years
    of a covered commodity, the amount of the counter-cyclical payment to
    be paid to the producers on a farm for that crop year shall be equal to
    the product of the following:
            (1) The payment rate specified in subsection (d).
            (2) The payment acres of the covered commodity on the farm.
            (3) The payment yield for the covered commodity for the farm.
        (f) Time for Payments.--
            (1) General rule.--Except as provided in paragraph (2), if the
        Secretary determines under subsection (a) that counter-cyclical
        payments are required to be made under this section for the crop of
        a covered commodity, beginning October 1, or as soon as practicable
        thereafter, after the end of the marketing year for the covered
        commodity, the Secretary shall make the counter-cyclical payments
        for the crop.
            (2) Availability of partial payments.--
                (A) In general.--If, before the end of the 12-month
            marketing year for a covered commodity, the Secretary estimates
            that counter-cyclical payments will be required for the crop of
            the covered commodity, the Secretary shall 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 60 days prior to the end of the marketing
                year for that covered commodity.
                    (ii) Date of issuance.--The Secretary shall issue the
                partial payment after the date of an announcement by the
                Secretary but not later than 30 days prior to the end of
                the marketing year.
            (3) Time for partial payments.--When the Secretary makes
        partial payments for a covered commodity for any of the 2008
        through 2010 crop years--
                (A) the first partial payment shall be made after
            completion of the first 180 days of the marketing year for the
            covered commodity; and
                (B) the final partial payment shall be made beginning
            October 1, or as soon as practicable thereafter, after the end
            of the applicable marketing year for the covered commodity.
            (4) Amount of partial payment.--
                (A) First partial payment.--For each of the 2008 through
            2010 crops of a covered commodity, the first partial payment
            under paragraph (3) to the producers on a farm may not exceed
            40 percent of the projected counter-cyclical payment for the
            covered commodity for the crop year, as determined by the
            Secretary.
                (B) Final payment.--The final payment for a covered
            commodity for a crop year shall be equal to the difference
            between--
                    (i) the actual counter-cyclical payment to be made to
                the producers for the covered commodity for that crop year;
                and
                    (ii) the amount of the partial payment made to the
                producers under subparagraph (A).
            (5) Repayment.--The producers on a farm that receive a partial
        payment under this subsection for a crop year shall repay to the
        Secretary the amount, if any, by which the total of the partial
        payments exceed the actual counter-cyclical payment to be made for
        the covered commodity for that crop year.
    SEC. 1105. AVERAGE CROP REVENUE ELECTION PROGRAM.
        (a) Availability and Election of Alternative Approach.--
            (1) Availability of average crop revenue election payments.--As
        an alternative to receiving counter-cyclical payments under section
        1104 or 1304 and in exchange for a 20-percent reduction in direct
        payments under section 1103 or 1303 and a 30-percent reduction in
        marketing assistance loan rates under section 1202 or 1307, with
        respect to all covered commodities and peanuts on a farm, during
        each of the 2009, 2010, 2011, and 2012 crop years, the Secretary
        shall give the producers on the farm an opportunity to make an
        irrevocable election to instead receive average crop revenue
        election (referred to in this section as ``ACRE'') payments under
        this section for the initial crop year for which the election is
        made through the 2012 crop year.
            (2) Limitation.--
                (A) In general.--The total number of planted acres for
            which the producers on a farm may receive ACRE payments under
            this section may not exceed the total base acreage for all
            covered commodities and peanuts on the farm.
                (B) Election.--If the total number of planted acres to all
            covered commodities and peanuts of the producers on a farm
            exceeds the total base acreage of the farm, the producers on
            the farm may choose which planted acres to enroll in the
            program under this section.
            (3) Election; time for election.--
                (A) In general.--The Secretary shall provide notice to
            producers regarding the opportunity to make each of the
            elections described in paragraph (1).
                (B) Notice requirements.--The notice shall include--
                    (i) notice of the opportunity of the producers on a
                farm to make the election; and
                    (ii) information regarding the manner in which the
                election must be made and the time periods and manner in
                which notice of the election must be submitted to the
                Secretary.
            (4) Election deadline.--Within the time period and in the
        manner prescribed pursuant to paragraph (3), all of the producers
        on a farm shall submit to the Secretary notice of an election made
        under paragraph (1).
            (5) Effect of failure to make election.--If all of the
        producers on a farm fail to make an election under paragraph (1),
        make different elections under paragraph (1), or fail to timely
        notify the Secretary of the election made, as required by paragraph
        (4), all of the producers on the farm shall be deemed to have made
        the election to receive counter-cyclical payments under section
        1104 or 1304 for all covered commodities and peanuts on the farm,
        and to otherwise not have made the election described in paragraph
        (1), for the applicable crop years.
        (b) Payments Required.--
            (1) In general.--In the case of producers on a farm who make an
        election under subsection (a) to receive ACRE payments for any of
        the 2009 through 2012 crop years for all covered commodities and
        peanuts, the Secretary shall make ACRE payments available to the
        producers on a farm in accordance with this subsection.
            (2) ACRE payment.--
                (A) In general.--Subject to paragraph (3), in the case of
            producers on a farm described in paragraph (1), the Secretary
            shall make ACRE payments available to the producers on a farm
            for each crop year if--
                    (i) the actual State revenue for the crop year for the
                covered commodity or peanuts in the State determined under
                subsection (c); is less than
                    (ii) the ACRE program guarantee for the crop year for
                the covered commodity or peanuts in the State determined
                under subsection (d).
                (B) Individual loss.--The Secretary shall make ACRE
            payments available to the producers on a farm in a State for a
            crop year only if (as determined by the Secretary)--
                    (i) the actual farm revenue for the crop year for the
                covered commodity or peanuts, as determined under
                subsection (e); is less than
                    (ii) the farm ACRE benchmark revenue for the crop year
                for the covered commodity or peanuts, as determined under
                subsection (f).
            (3) Time for payments.--In the case of each of the 2009 through
        2012 crop years, the Secretary shall make ACRE payments beginning
        October 1, or as soon as practicable thereafter, after the end of
        the applicable marketing year for the covered commodity or peanuts.
        (c) Actual State Revenue.--
            (1) In general.--For purposes of subsection (b)(2)(A), the
        amount of the actual State revenue for a crop year of a covered
        commodity or peanuts shall equal the product obtained by
        multiplying--
                (A) the actual State yield for each planted acre for the
            crop year for the covered commodity or peanuts determined under
            paragraph (2); and
                (B) the national average market price for the crop year for
            the covered commodity or peanuts determined under paragraph
            (3).
            (2) Actual state yield.--For purposes of paragraph (1)(A), the
        actual State yield for each planted acre for a crop year for a
        covered commodity or peanuts in a State shall equal (as determined
        by the Secretary)--
                (A) the quantity of the covered commodity or peanuts that
            is produced in the State during the crop year; divided by
                (B) the number of acres that are planted to the covered
            commodity or peanuts in the State during the crop year.
            (3) National average market price.--For purposes of paragraph
        (1)(B), the national average market price for a crop year for a
        covered commodity or peanuts in a State shall equal the greater
        of--
                (A) the national average market price received by producers
            during the 12-month marketing year for the covered commodity or
            peanuts, as determined by the Secretary; or
                (B) the marketing assistance loan rate for the covered
            commodity or peanuts under section 1202 or 1307, as reduced
            under subsection (a)(1).
        (d) ACRE Program Guarantee.--
            (1) Amount.--
                (A) In general.--For purposes of subsection (b)(2)(A) and
            subject to subparagraph (B), the ACRE program guarantee for a
            crop year for a covered commodity or peanuts in a State shall
            equal 90 percent of the product obtained by multiplying--
                    (i) the benchmark State yield for each planted acre for
                the crop year for the covered commodity or peanuts in a
                State determined under paragraph (2); and
                    (ii) the ACRE program guarantee price for the crop year
                for the covered commodity or peanuts determined under
                paragraph (3).
                (B) Minimum and maximum guarantee.--In the case of each of
            the 2010 through 2012 crop years, the ACRE program guarantee
            for a crop year for a covered commodity or peanuts under
            subparagraph (A) shall not decrease or increase more than 10
            percent from the guarantee for the preceding crop year.
            (2) Benchmark state yield.--
                (A) In general.--For purposes of paragraph (1)(A)(i),
            subject to subparagraph (B), the benchmark State yield for each
            planted acre for a crop year for a covered commodity or peanuts
            in a State shall equal the average yield per planted acre for
            the covered commodity or peanuts in the State for the most
            recent 5 crop year yields, excluding each of the crop years
            with the highest and lowest yields, using National Agricultural
            Statistics Service data.
                (B) Assigned yield.--If the Secretary cannot establish the
            benchmark State yield for each planted acre for a crop year for
            a covered commodity or peanuts in a State in accordance with
            subparagraph (A) or if the yield determined under subparagraph
            (A) is an unrepresentative average yield for the State (as
            determined by the Secretary), the Secretary shall assign a
            benchmark State yield for each planted acre for the crop year
            for the covered commodity or peanuts in the State on the basis
            of--
                    (i) previous average yields for a period of 5 crop
                years, excluding each of the crop years with the highest
                and lowest yields; or
                    (ii) benchmark State yields for planted acres for the
                crop year for the covered commodity or peanuts in similar
                States.
            (3) ACRE program guarantee price.--For purposes of paragraph
        (1)(A)(ii), the ACRE program guarantee price for a crop year for a
        covered commodity or peanuts in a State shall be the simple average
        of the national average market price received by producers of the
        covered commodity or peanuts for the most recent 2 crop years, as
        determined by the Secretary.
            (4) States with irrigated and nonirrigated land.--In the case
        of a State in which at least 25 percent of the acreage planted to a
        covered commodity or peanuts in the State is irrigated and at least
        25 percent of the acreage planted to the covered commodity or
        peanuts in the State is not irrigated, the Secretary shall
        calculate a separate ACRE program guarantee for the irrigated and
        nonirrigated areas of the State for the covered commodity or
        peanuts.
        (e) Actual Farm Revenue.--For purposes of subsection (b)(2)(B)(i),
    the amount of the actual farm revenue for a crop year for a covered
    commodity or peanuts shall equal the amount determined by multiplying--
            (1) the actual yield for the covered commodity or peanuts of
        the producers on the farm; and
            (2) the national average market price for the crop year for the
        covered commodity or peanuts determined under subsection (c)(3).
        (f) Farm ACRE Benchmark Revenue.--For purposes of subsection
    (b)(2)(B)(ii), the farm ACRE benchmark revenue for the crop year for a
    covered commodity or peanuts shall equal the sum obtained by adding--
            (1) the amount determined by multiplying--
                (A) the average yield per planted acre for the covered
            commodity or peanuts of the producers on the farm for the most
            recent 5 crop years, excluding each of the crop years with the
            highest and lowest yields; and
                (B) the ACRE program guarantee price for the applicable
            crop year for the covered commodity or peanuts in a State
            determined under subsection (d)(3); and
            (2) the amount of the per acre crop insurance premium required
        to be paid by the producers on the farm for the applicable crop
        year for the covered commodity or peanuts on the farm.
        (g) Payment Amount.--If ACRE payments are required to be paid for
    any of the 2009 through 2012 crop years of a covered commodity or
    peanuts under this section, the amount of the ACRE payment to be paid
    to the producers on the farm for the crop year under this section shall
    be equal to the product obtained by multiplying--
            (1) the lesser of--
                (A) the difference between--
                    (i) the ACRE program guarantee for the crop year for
                the covered commodity or peanuts in the State determined
                under subsection (d); and
                    (ii) the actual State revenue from the crop year for
                the covered commodity or peanuts in the State determined
                under subsection (c); and
                (B) 25 percent of the ACRE program guarantee for the crop
            year for the covered commodity or peanuts in the State
            determined under subsection (d);
            (2)(A) for each of the 2009 through 2011 crop years, 83.3
        percent of the acreage planted or considered planted to the covered
        commodity or peanuts for harvest on the farm in the crop year; and
            (B) for the 2012 crop year, 85 percent of the acreage planted
        or considered planted to the covered commodity or peanuts for
        harvest on the farm in the crop year; and
            (3) the quotient obtained by dividing--
                (A) the average yield per planted acre for the covered
            commodity or peanuts of the producers on the farm for the most
            recent 5 crop years, excluding each of the crop years with the
            highest and lowest yields; by
                (B) the benchmark State yield for the crop year, as
            determined under subsection (d)(2).
    SEC. 1106. PRODUCER AGREEMENT REQUIRED AS CONDITION OF PROVISION OF
    PAYMENTS.
        (a) Compliance With Certain Requirements.--
            (1) Requirements.--Before the producers on a farm may receive
        direct payments, counter-cyclical payments, or average crop revenue
        election payments with respect to the farm, the producers shall
        agree, during the crop year for which the payments are made and in
        exchange for the payments--
                (A) to comply with applicable conservation requirements
            under subtitle B of title XII of the Food Security Act of 1985
            (16 U.S.C. 3811 et seq.);
                (B) to comply with applicable wetland protection
            requirements under subtitle C of title XII of that Act (16
            U.S.C. 3821 et seq.);
                (C) to comply with the planting flexibility requirements of
            section 1107;
                (D) to use the land on the farm, in a quantity equal to the
            attributable base acres for the farm and any base acres for
            peanuts for the farm under subtitle C, for an agricultural or
            conserving use, and not for a nonagricultural commercial,
            industrial, or residential use, as determined by the Secretary;
            and
                (E) to effectively control noxious weeds and otherwise
            maintain the land in accordance with sound agricultural
            practices, as determined by the Secretary, if the agricultural
            or conserving use involves the noncultivation of any portion of
            the land referred to in subparagraph (D).
            (2) Compliance.--The Secretary may issue such rules as the
        Secretary considers necessary to ensure producer compliance with
        the requirements of paragraph (1).
            (3) Modification.--At the request of the transferee or owner,
        the Secretary may modify the requirements of this subsection if the
        modifications are consistent with the objectives of this
        subsection, as determined by the Secretary.
        (b) Transfer or Change of Interest in Farm.--
            (1) Termination.--
                (A) In general.--Except as provided in paragraph (2), a
            transfer of (or change in) the interest of the producers on a
            farm in base acres for which direct payments or counter-
            cyclical payments are made, or on which average crop revenue
            election payments are based, shall result in the termination of
            the direct payments, counter-cyclical payments, or average crop
            revenue election payments to the extent the payments are made
            or based on the base acres, unless the transferee or owner of
            the acreage agrees to assume all obligations under subsection
            (a).
                (B) Effective date.--The termination shall take effect on
            the date determined by the Secretary.
            (2) Exception.--If a producer entitled to a direct payment,
        counter-cyclical payment, or average crop revenue election payment
        dies, becomes incompetent, or is otherwise unable to receive the
        payment, the Secretary shall make the payment, in accordance with
        rules issued by the Secretary.
        (c) Reports.--
            (1) Acreage reports.--As a condition on the receipt of any
        benefits under this subtitle or subtitle B, the Secretary shall
        require producers on a farm to submit to the Secretary annual
        acreage reports with respect to all cropland on the farm.
            (2) Production reports.--As a condition on the receipt of any
        benefits under this subtitle or subtitle B, the Secretary shall
        require producers on a farm that receive payments under section
        1105 to submit to the Secretary annual production reports with
        respect to all covered commodities and peanuts produced on the
        farm.
            (3) Penalties.--No penalty with respect to benefits under this
        subtitle or subtitle B shall be assessed against the producers on a
        farm for an inaccurate acreage or production report unless the
        producers on the farm knowingly and willfully falsified the acreage
        or production report.
        (d) Tenants and Sharecroppers.--In carrying out this subtitle, the
    Secretary shall provide adequate safeguards to protect the interests of
    tenants and sharecroppers.
        (e) Sharing of Payments.--The Secretary shall provide for the
    sharing of direct payments, counter-cyclical payments, or average crop
    revenue election payments among the producers on a farm on a fair and
    equitable basis.
    SEC. 1107. 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.--Notwithstanding paragraphs (1)
        and (2) of subsection (b) and in addition to the exceptions
        provided in subsection (c), the Secretary shall carry out a pilot
        project to permit the planting of cucumbers, green peas, lima
        beans, pumpkins, snap beans, sweet corn, and tomatoes grown for
        processing on base acres during each of the 2009 through 2012 crop
        years.
            (2) Pilot project states and acres.--The number of base acres
        eligible during each crop year for the pilot project under
        paragraph (1) shall be--
                (A) 9,000 acres in the State of Illinois;
                (B) 9,000 acres in the State of Indiana;
                (C) 1,000 acres in the State of Iowa;
                (D) 9,000 acres in the State of Michigan;
                (E) 34,000 acres in the State of Minnesota;
                (F) 4,000 acres in the State of Ohio; and
                (G) 9,000 acres in the State of Wisconsin.
            (3) Contract and management requirements.--To be eligible for
        selection to participate in the pilot project, the producers on a
        farm shall--
                (A) demonstrate to the Secretary that the producers on the
            farm have entered into a contract to produce a crop of a
            commodity specified in paragraph (1) for processing;
                (B) agree to produce the crop as part of a program of crop
            rotation on the farm to achieve agronomic and pest and disease
            management benefits; and
                (C) provide evidence of the disposition of the crop.
            (4) Temporary reduction in base acres.--The base acres on a
        farm for a crop year shall be reduced by an acre for each acre
        planted under the pilot program.
            (5) Duration of reductions.--The reduction in the base acres of
        a farm for a crop year under paragraph (4) shall expire at the end
        of the crop year.
            (6) Recalculation of base acres.--
                (A) In general.--If the Secretary recalculates base acres
            for a farm while the farm is included in the pilot project, the
            planting and production of a crop of a commodity specified in
            paragraph (1) on base acres for which a temporary reduction was
            made under this section shall be considered to be the same as
            the planting and production of a covered commodity.
                (B) Prohibition.--Nothing in this paragraph provides
            authority for the Secretary to recalculate base acres for a
            farm.
            (7) Pilot impact evaluation.--
                (A) In general.--The Secretary shall periodically evaluate
            the pilot project conducted under this subsection to determine
            the effects of the pilot project on the supply and price of--
                    (i) fresh fruits and vegetables; and
                    (ii) fruits and vegetables for processing.
                (B) Determination.--An evaluation under subparagraph (A)
            shall include a determination as to whether--
                    (i) producers of fresh fruits and vegetables are being
                negatively impacted; and
                    (ii) existing production capacities are being
                supplanted.
                (C) Report.--As soon as practicable after conducting an
            evaluation under subparagraph (A), the Secretary shall submit
            to the Committee on Agriculture of the House of Representatives
            and the Committee on Agriculture, Nutrition, and Forestry of
            the Senate a report that describes the results of the
            evaluation.
    SEC. 1108. SPECIAL RULE FOR LONG GRAIN AND MEDIUM GRAIN RICE.
        (a) Calculation Method.--Subject to subsections (b) and (c), for
    the purposes of determining the amount of the counter-cyclical payments
    to be paid to the producers on a farm for long grain rice and medium
    grain rice under section 1104, the base acres of rice on the farm shall
    be apportioned using the 4-year average of the percentages of acreage
    planted in the applicable State to long grain rice and medium grain
    rice during the 2003 through 2006 crop years, as determined by the
    Secretary.
        (b) Producer Election.--As an alternative to the calculation method
    described in subsection (a), the Secretary shall provide producers on a
    farm the opportunity to elect to apportion rice base acres on the farm
    using the 4-year average of--
            (1) the percentages of acreage planted on the farm to long
        grain rice and medium grain rice during the 2003 through 2006 crop
        years;
            (2) the percentages of any acreage on the farm that the
        producers were prevented from planting to long grain rice and
        medium grain rice during the 2003 through 2006 crop years because
        of drought, flood, other natural disaster, or other condition
        beyond the control of the producers, as determined by the
        Secretary; and
            (3) in the case of a crop year for which a producer on a farm
        elected not to plant to long grain and medium grain rice during the
        2003 through 2006 crop years, the percentages of acreage planted in
        the applicable State to long grain rice and medium grain rice, as
        determined by the Secretary.
        (c) Limitation.--In carrying out this section, the Secretary shall
    use the same total base acres, payment acres, and payment yields
    established with respect to rice under sections 1101 and 1102 of the
    Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911, 7912),
    as in effect on September 30, 2007, subject to any adjustment under
    section 1101 of this Act.
    SEC. 1109. PERIOD OF EFFECTIVENESS.
        This subtitle shall be effective beginning with the 2008 crop year
    of each covered commodity through the 2012 crop year.

      Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

    SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR
    LOAN COMMODITIES.
        (a) Nonrecourse Loans Available.--
            (1) Availability.--For each of the 2008 through 2012 crops of
        each loan commodity, the Secretary shall make available to
        producers on a farm nonrecourse marketing assistance loans for loan
        commodities produced on the farm.
            (2) Terms and conditions.--The marketing assistance loans shall
        be made under terms and conditions that are prescribed by the
        Secretary and at the loan rate established under section 1202 for
        the loan commodity.
        (b) Eligible Production.--The producers on a farm shall be eligible
    for a marketing assistance loan under subsection (a) for any quantity
    of a loan commodity produced on the farm.
        (c) Compliance With Conservation and Wetlands Requirements.--As a
    condition of the receipt of a marketing assistance loan under
    subsection (a), the producer shall comply with applicable conservation
    requirements under subtitle B of title XII of the Food Security Act of
    1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection
    requirements under subtitle C of title XII of that Act (16 U.S.C. 3821
    et seq.) during the term of the loan.
    SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE LOANS.
        (a) 2008 Crop Year.--For purposes of the 2008 crop year, the loan
    rate for a marketing assistance loan under section 1201 for a loan
    commodity shall be equal to the following:
            (1) In the case of wheat, $2.75 per bushel.
            (2) In the case of corn, $1.95 per bushel.
            (3) In the case of grain sorghum, $1.95 per bushel.
            (4) In the case of barley, $1.85 per bushel.
            (5) In the case of oats, $1.33 per bushel.
            (6) In the case of base quality of upland cotton, $0.52 per
        pound.
            (7) In the case of extra long staple cotton, $0.7977 per pound.
            (8) In the case of long grain rice, $6.50 per hundredweight.
            (9) In the case of medium grain rice, $6.50 per hundredweight.
            (10) In the case of soybeans, $5.00 per bushel.
            (11) In the case of other oilseeds, $9.30 per hundredweight for
        each of the following kinds of oilseeds:
                (A) Sunflower seed.
                (B) Rapeseed.
                (C) Canola.
                (D) Safflower.
                (E) Flaxseed.
                (F) Mustard seed.
                (G) Crambe.
                (H) Sesame seed.
                (I) Other oilseeds designated by the Secretary.
            (12) In the case of dry peas, $6.22 per hundredweight.
            (13) In the case of lentils, $11.72 per hundredweight.
            (14) In the case of small chickpeas, $7.43 per hundredweight.
            (15) In the case of graded wool, $1.00 per pound.
            (16) In the case of nongraded wool, $0.40 per pound.
            (17) In the case of mohair, $4.20 per pound.
            (18) In the case of honey, $0.60 per pound.
        (b) 2009 Crop Year.--Except as provided in section 1105, for
    purposes of the 2009 crop year, the loan rate for a marketing
    assistance loan under section 1201 for a loan commodity shall be equal
    to the following:
            (1) In the case of wheat, $2.75 per bushel.
            (2) In the case of corn, $1.95 per bushel.
            (3) In the case of grain sorghum, $1.95 per bushel.
            (4) In the case of barley, $1.85 per bushel.
            (5) In the case of oats, $1.33 per bushel.
            (6) In the case of base quality of upland cotton, $0.52 per
        pound.
            (7) In the case of extra long staple cotton, $0.7977 per pound.
            (8) In the case of long grain rice, $6.50 per hundredweight.
            (9) In the case of medium grain rice, $6.50 per hundredweight.
            (10) In the case of soybeans, $5.00 per bushel.
            (11) In the case of other oilseeds, $9.30 per hundredweight for
        each of the following kinds of oilseeds:
                (A) Sunflower seed.
                (B) Rapeseed.
                (C) Canola.
                (D) Safflower.
                (E) Flaxseed.
                (F) Mustard seed.
                (G) Crambe.
                (H) Sesame seed.
                (I) Other oilseeds designated by the Secretary.
            (12) In the case of dry peas, $5.40 per hundredweight.
            (13) In the case of lentils, $11.28 per hundredweight.
            (14) In the case of small chickpeas, $7.43 per hundredweight.
            (15) In the case of large chickpeas, $11.28 per hundredweight.
            (16) In the case of graded wool, $1.00 per pound.
            (17) In the case of nongraded wool, $0.40 per pound.
            (18) In the case of mohair, $4.20 per pound.
            (19) In the case of honey, $0.60 per pound.
        (c) 2010 Through 2012 Crop Years.--Except as provided in section
    1105, for purposes of each of the 2010 through 2012 crop years, the
    loan rate for a marketing assistance loan under section 1201 for a loan
    commodity shall be equal to the following:
            (1) In the case of wheat, $2.94 per bushel.
            (2) In the case of corn, $1.95 per bushel.
            (3) In the case of grain sorghum, $1.95 per bushel.
            (4) In the case of barley, $1.95 per bushel.
            (5) In the case of oats, $1.39 per bushel.
            (6) In the case of base quality of upland cotton, $0.52 per
        pound.
            (7) In the case of extra long staple cotton, $0.7977 per pound.
            (8) In the case of long grain rice, $6.50 per hundredweight.
            (9) In the case of medium grain rice, $6.50 per hundredweight.
            (10) In the case of soybeans, $5.00 per bushel.
            (11) In the case of other oilseeds, $10.09 per hundredweight
        for each of the following kinds of oilseeds:
                (A) Sunflower seed.
                (B) Rapeseed.
                (C) Canola.
                (D) Safflower.
                (E) Flaxseed.
                (F) Mustard seed.
                (G) Crambe.
                (H) Sesame seed.
                (I) Other oilseeds designated by the Secretary.
            (12) In the case of dry peas, $5.40 per hundredweight.
            (13) In the case of lentils, $11.28 per hundredweight.
            (14) In the case of small chickpeas, $7.43 per hundredweight.
            (15) In the case of large chickpeas, $11.28 per hundredweight.
            (16) In the case of graded wool, $1.15 per pound.
            (17) In the case of nongraded wool, $0.40 per pound.
            (18) In the case of mohair, $4.20 per pound.
            (19) In the case of honey, $0.69 per pound.
        (d) Single County Loan Rate for Other Oilseeds.--The Secretary
    shall establish a single loan rate in each county for each kind of
    other oilseeds described in subsections (a)(11), (b)(11), and (c)(11).
    SEC. 1203. 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));
            (2) a rate (as determined by the Secretary) that--
                (A) is calculated based on average market prices for the
            loan commodity during the preceding 30-day period; and
                (B) will minimize discrepancies in marketing loan benefits
            across State boundaries and across county boundaries; or
            (3) a rate that the Secretary may develop using alternative
        methods for calculating a repayment rate for a loan commodity that
        the Secretary determines will--
                (A) minimize potential loan forfeitures;
                (B) minimize the accumulation of stocks of the commodity by
            the Federal Government;
                (C) minimize the cost incurred by the Federal Government in
            storing the commodity;
                (D) allow the commodity produced in the United States to be
            marketed freely and competitively, both domestically and
            internationally; and
                (E) minimize discrepancies in marketing loan benefits
            across State boundaries and across county boundaries.
        (b) Repayment Rates for Upland Cotton, Long Grain Rice, and Medium
    Grain Rice.--The Secretary shall permit producers to repay a marketing
    assistance loan under section 1201 for upland cotton, long grain rice,
    and medium grain rice at a rate that is the lesser of--
            (1) the loan rate established for the commodity under section
        1202, plus interest (determined in accordance with section 163 of
        the Federal Agriculture Improvement and Reform Act of 1996 (7
        U.S.C. 7283)); or
            (2) the prevailing world market price for the commodity, as
        determined and adjusted by the Secretary in accordance with this
        section.
        (c) Repayment Rates for Extra Long Staple Cotton.--Repayment of a
    marketing assistance loan for extra long staple cotton shall be at the
    loan rate established for the commodity under section 1202, plus
    interest (determined in accordance with section 163 of the Federal
    Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
        (d) Prevailing World Market Price.--For purposes of this section
    and section 1207, the Secretary shall prescribe by regulation--
            (1) a formula to determine the prevailing world market price
        for each of upland cotton, long grain rice, and medium grain rice;
        and
            (2) a mechanism by which the Secretary shall announce
        periodically those prevailing world market prices.
        (e) Adjustment of Prevailing World Market Price for Upland Cotton,
    Long Grain Rice, and Medium Grain Rice.--
            (1) Rice.--The prevailing world market price for long grain
        rice and medium grain rice determined under subsection (d) shall be
        adjusted to United States quality and location.
            (2) Cotton.--The prevailing world market price for upland
        cotton determined under subsection (d)--
                (A) shall be adjusted to United States quality and
            location, with the adjustment to include--
                    (i) a reduction equal to any United States Premium
                Factor for upland cotton of a quality higher than Middling
                (M) 1\3/32\-inch; and
                    (ii) the average costs to market the commodity,
                including average transportation costs, as determined by
                the Secretary; and
                (B) may be further adjusted, during the period beginning on
            the date of enactment of this Act and ending on July 31, 2013,
            if the Secretary determines the adjustment is necessary to--
                    (i) minimize potential loan forfeitures;
                    (ii) minimize the accumulation of stocks of upland
                cotton by the Federal Government;
                    (iii) ensure that upland cotton produced in the United
                States can be marketed freely and competitively, both
                domestically and internationally; and
                    (iv) ensure an appropriate transition between current-
                crop and forward-crop price quotations, except that the
                Secretary may use forward-crop price quotations prior to
                July 31 of a marketing year only if--

                        (I) there are insufficient current-crop price
                    quotations; and
                        (II) the forward-crop price quotation is the lowest
                    such quotation available.

            (3) Guidelines for additional adjustments.--In making
        adjustments under this subsection, the Secretary shall establish a
        mechanism for determining and announcing the adjustments in order
        to avoid undue disruption in the United States market.
        (f) Repayment Rates for Confectionery and Other Kinds of Sunflower
    Seeds.--The Secretary shall permit the producers on a farm to repay a
    marketing assistance loan under section 1201 for confectionery and each
    other kind of sunflower seed (other than oil sunflower seed) at a rate
    that is the lesser of--
            (1) the loan rate established for the commodity under section
        1202, plus interest (determined in accordance with section 163 of
        the Federal Agriculture Improvement and Reform Act of 1996 (7
        U.S.C. 7283)); or
            (2) the repayment rate established for oil sunflower seed.
        (g) Payment of Cotton Storage Costs.--
            (1) 2008 through 2011 crop years.--Effective for each of the
        2008 through 2011 crop years, the Secretary shall provide cotton
        storage payments in the same manner, and at the same rates as the
        Secretary provided storage payments for the 2006 crop of cotton,
        except that the rates shall be reduced by 10 percent.
            (2) Subsequent crop years.--Beginning with the 2012 crop year,
        the Secretary shall provide cotton storage payments in the same
        manner, and at the same rates as the Secretary provided storage
        payments for the 2006 crop of cotton, except that the rates shall
        be reduced by 20 percent.
        (h) Authority to Temporarily Adjust Repayment Rates.--
            (1) Adjustment authority.--In the event of a severe disruption
        to marketing, transportation, or related infrastructure, the
        Secretary may modify the repayment rate otherwise applicable under
        this section for marketing assistance loans under section 1201 for
        a loan commodity.
            (2) Duration.--Any adjustment made under paragraph (1) in the
        repayment rate for marketing assistance loans for a loan commodity
        shall be in effect on a short-term and temporary basis, as
        determined by the Secretary.
    SEC. 1205. LOAN DEFICIENCY PAYMENTS.
        (a) Availability of Loan Deficiency Payments.--
            (1) In general.--Except as provided in subsection (d), the
        Secretary may make loan deficiency payments available to producers
        on a farm that, although eligible to obtain a marketing assistance
        loan under section 1201 with respect to a loan commodity, agree to
        forgo obtaining the loan for the commodity in return for loan
        deficiency payments under this section.
            (2) Unshorn pelts, hay, and silage.--
                (A) Marketing assistance loans.--Subject to subparagraph
            (B), nongraded wool in the form of unshorn pelts and hay and
            silage derived from a loan commodity are not eligible for a
            marketing assistance loan under section 1201.
                (B) Loan deficiency payment.--Effective for the 2008
            through 2012 crop years, the Secretary may make loan deficiency
            payments available under this section to producers on a farm
            that produce unshorn pelts or hay and silage derived from a
            loan commodity.
        (b) Computation.--A loan deficiency payment for a loan commodity or
    commodity referred to in subsection (a)(2) shall be computed by
    multiplying--
            (1) the payment rate determined under subsection (c) for the
        commodity; by
            (2) the quantity of the commodity produced by the eligible
        producers, excluding any quantity for which the producers obtain a
        marketing assistance loan under section 1201.
        (c) Payment Rate.--
            (1) In general.--In the case of a loan commodity, the payment
        rate shall be the amount by which--
                (A) the loan rate established under section 1202 for the
            loan commodity; exceeds
                (B) the rate at which a marketing assistance loan for the
            loan commodity may be repaid under section 1204.
            (2) Unshorn pelts.--In the case of unshorn pelts, the payment
        rate shall be the amount by which--
                (A) the loan rate established under section 1202 for
            ungraded wool; exceeds
                (B) the rate at which a marketing assistance loan for
            ungraded wool may be repaid under section 1204.
            (3) Hay and silage.--In the case of hay or silage derived from
        a loan commodity, the payment rate shall be the amount by which--
                (A) the loan rate established under section 1202 for the
            loan commodity from which the hay or silage is derived; exceeds
                (B) the rate at which a marketing assistance loan for the
            loan commodity may be repaid under section 1204.
        (d) Exception for Extra Long Staple Cotton.--This section shall not
    apply with respect to extra long staple cotton.
        (e) Effective Date for Payment Rate Determination.--The Secretary
    shall determine the amount of the loan deficiency payment to be made
    under this section to the producers on a farm with respect to a
    quantity of a loan commodity or commodity referred to in subsection
    (a)(2) using the payment rate in effect under subsection (c) as of the
    date the producers request the payment.
    SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR GRAZED
    ACREAGE.
        (a) Eligible Producers.--
            (1) In general.--Effective for the 2008 through 2012 crop
        years, in the case of a producer that would be eligible for a loan
        deficiency payment under section 1205 for wheat, barley, or oats,
        but that elects to use acreage planted to the wheat, barley, or
        oats for the grazing of livestock, the Secretary shall make a
        payment to the producer under this section if the producer enters
        into an agreement with the Secretary to forgo any other harvesting
        of the wheat, barley, or oats on that acreage.
            (2) Grazing of triticale acreage.--Effective for the 2008
        through 2012 crop years, with respect to a producer on a farm that
        uses acreage planted to triticale for the grazing of livestock, the
        Secretary shall make a payment to the producer under this section
        if the producer enters into an agreement with the Secretary to
        forgo any other harvesting of triticale on that acreage.
        (b) Payment Amount.--
            (1) In general.--The amount of a payment made under this
        section to a producer on a farm described in subsection (a)(1)
        shall be equal to the amount determined by multiplying--
                (A) the loan deficiency payment rate determined under
            section 1205(c) in effect, as of the date of the agreement, for
            the county in which the farm is located; by
                (B) the payment quantity determined by multiplying--
                    (i) the quantity of the grazed acreage on the farm with
                respect to which the producer elects to forgo harvesting of
                wheat, barley, or oats; and
                    (ii) the payment yield in effect for the calculation of
                direct payments under subtitle A with respect to that loan
                commodity on the farm or, in the case of a farm without a
                payment yield for that loan commodity, an appropriate yield
                established by the Secretary in a manner consistent with
                section 1102 of the Farm Security and Rural Investment Act
                of 2002 (7 U.S.C. 7912).
            (2) Grazing of triticale acreage.--The amount of a payment made
        under this section to a producer on a farm described in subsection
        (a)(2) shall be equal to the amount determined by multiplying--
                (A) the loan deficiency payment rate determined under
            section 1205(c) in effect for wheat, as of the date of the
            agreement, for the county in which the farm is located; by
                (B) the payment quantity determined by multiplying--
                    (i) the quantity of the grazed acreage on the farm with
                respect to which the producer elects to forgo harvesting of
                triticale; and
                    (ii) the payment yield in effect for the calculation of
                direct payments under subtitle A with respect to wheat on
                the farm or, in the case of a farm without a payment yield
                for wheat, an appropriate yield established by the
                Secretary in a manner consistent with section 1102 of the
                Farm Security and Rural Investment Act of 2002 (7 U.S.C.
                7912).
        (c) Time, Manner, and Availability of Payment.--
            (1) Time and manner.--A payment under this section shall be
        made at the same time and in the same manner as loan deficiency
        payments are made under section 1205.
            (2) Availability.--
                (A) In general.--The Secretary shall establish an
            availability period for the payments authorized by this
            section.
                (B) Certain commodities.--In the case of wheat, barley, and
            oats, the availability period shall be consistent with the
            availability period for the commodity established by the
            Secretary for marketing assistance loans authorized by this
            subtitle.
        (d) Prohibition on Crop Insurance Indemnity or Noninsured Crop
    Assistance.--A 2008 through 2012 crop of wheat, barley, oats, or
    triticale planted on acreage that a producer elects, in the agreement
    required by subsection (a), to use for the grazing of livestock in lieu
    of any other harvesting of the crop shall not be eligible for an
    indemnity under a policy or plan of insurance authorized under the
    Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop
    assistance under section 196 of the Federal Agriculture Improvement and
    Reform Act of 1996 (7 U.S.C. 7333).
    SEC. 1207. 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
            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 July 31, 2012, the value of the
            assistance provided under paragraph (1) shall be 4 cents per
            pound.
                (B) Subsequent period.--Effective beginning on August 1,
            2012, the value of the assistance provided under paragraph (1)
            shall be 3 cents per pound.
            (3) Allowable purposes.--Economic adjustment assistance under
        this subsection shall be made available only to domestic users of
        upland cotton that certify that the assistance shall be used only
        to acquire, construct, install, modernize, develop, convert, or
        expand land, plant, buildings, equipment, facilities, or machinery.
            (4) Review or audit.--The Secretary may conduct such review or
        audit of the records of a domestic user under this subsection as
        the Secretary determines necessary to carry out this subsection.
            (5) Improper use of assistance.--If the Secretary determines,
        after a review or audit of the records of the domestic user, that
        economic adjustment assistance under this subsection was not used
        for the purposes specified in paragraph (3), the domestic user
        shall be--
                (A) liable to repay the assistance to the Secretary, plus
            interest, as determined by the Secretary; and
                (B) ineligible to receive assistance under this subsection
            for a period of 1 year following the determination of the
            Secretary.
    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 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 subtitle A or the actual
            yield on a field, as determined by the Secretary, that is
            similar to the field from which the corn or grain sorghum was
            obtained.
        (b) Recourse Loans Available for Seed Cotton.--For each of the 2008
    through 2012 crops of upland cotton and extra long staple cotton, the
    Secretary shall make available recourse seed cotton loans, as
    determined by the Secretary, on any production.
        (c) Repayment Rates.--Repayment of a recourse loan made under this
    section shall be at the loan rate established for the commodity by the
    Secretary, plus interest (determined in accordance with section 163 of
    the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
    7283)).
    SEC. 1210. ADJUSTMENTS OF LOANS.
        (a) Adjustment Authority.--Subject to subsection (e), the Secretary
    may make appropriate adjustments in the loan rates for any loan
    commodity (other than cotton) for differences in grade, type, quality,
    location, and other factors.
        (b) Manner of Adjustment.--The adjustments under subsection (a)
    shall, to the maximum extent practicable, be made in such a manner that
    the average loan level for the commodity will, on the basis of the
    anticipated incidence of the factors, be equal to the level of support
    determined in accordance with this subtitle and subtitles B through E.
        (c) Adjustment on County Basis.--
            (1) In general.--The Secretary may establish loan rates for a
        crop for producers in individual counties in a manner that results
        in the lowest loan rate being 95 percent of the 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 date of
            enactment of this Act, the Secretary shall implement revisions
            in the administration of the marketing assistance loan program
            for upland cotton to more accurately and efficiently reflect
            market values for upland cotton.
                (B) Mandatory revisions.--Revisions under subparagraph (A)
            shall include--
                    (i) the elimination of warehouse location
                differentials;
                    (ii) the establishment of differentials for the various
                quality factors and staple lengths of cotton based on a 3-
                year, weighted moving average of the weighted designated
                spot market regions, as determined by regional production;
                    (iii) the elimination of any artificial split in the
                premium or discount between upland cotton with a 32 or 33
                staple length due to micronaire; and
                    (iv) a mechanism to ensure that no premium or discount
                is established that exceeds the premium or discount
                associated with a leaf grade that is 1 better than the
                applicable color grade.
                (C) Discretionary revisions.--Revisions under subparagraph
            (A) may include--
                    (i) the use of non-spot market price data, in addition
                to spot market price data, that would enhance the accuracy
                of the price information used in determining quality
                adjustments under this subsection;
                    (ii) adjustments in the premiums or discounts
                associated with upland cotton with a staple length of 33 or
                above due to micronaire with the goal of eliminating any
                unnecessary artificial splits in the calculations of the
                premiums or discounts; and
                    (iii) such other adjustments as the Secretary
                determines appropriate, after consultations conducted in
                accordance with paragraph (3).
            (3) Consultation with private sector.--
                (A) Prior to revision.--In making adjustments to the loan
            rate for cotton (including any review of the adjustments) as
            provided in this subsection, the Secretary shall consult with
            representatives of the United States cotton industry.
                (B) Inapplicability of federal advisory committee act.--The
            Federal Advisory Committee Act (5 U.S.C. App.) shall not apply
            to consultations under this subsection.
            (4) Review of adjustments.--The Secretary may review the
        operation of the upland cotton quality adjustments implemented
        pursuant to this subsection and may make further revisions to the
        administration of the loan program for upland cotton, by--
                (A) revoking or revising any actions taken under paragraph
            (2)(B); or
                (B) revoking or revising any actions taken or authorized to
            be taken under paragraph (2)(C).
        (e) Rice.--The Secretary shall not make adjustments in the loan
    rates for long grain rice and medium grain rice, except for differences
    in grade and quality (including milling yields).

                              Subtitle C--Peanuts

    SEC. 1301. DEFINITIONS.
        In this subtitle:
            (1) Base acres for peanuts.--
                (A) In general.--The term ``base acres for peanuts'' means
            the number of acres assigned to a farm pursuant to section 1302
            of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
            7952), as in effect on September 30, 2007, subject to any
            adjustment under section 1302 of this Act.
                (B) Covered commodities.--The term ``base acres'', with
            respect to a covered commodity, has the meaning given the term
            in section 1101.
            (2) Counter-cyclical payment.--The term ``counter-cyclical
        payment'' means a payment made to producers on a farm under section
        1304.
            (3) Direct payment.--The term ``direct payment'' means a direct
        payment made to producers on a farm under section 1303.
            (4) Effective price.--The term ``effective price'' means the
        price calculated by the Secretary under section 1304 for peanuts to
        determine whether counter-cyclical payments are required to be made
        under that section for a crop year.
            (5) Payment acres.--The term ``payment acres'' means, in the
        case of direct payments and counter-cyclical payments--
                (A) except as provided in subparagraph (B), 85 percent of
            the base acres of peanuts on a farm on which direct payments or
            counter-cyclical payments are made; and
                (B) in the case of direct payments for each of the 2009
            through 2011 crop years, 83.3 percent of the base acres for
            peanuts on a farm on which direct payments are made.
            (6) Payment yield.--The term ``payment yield'' means the yield
        established for direct payments and the yield established for
        counter-cyclical payments under section 1302 of the Farm Security
        and Rural Investment Act of 2002 (7 U.S.C. 7952), as in effect on
        September 30, 2007, for a farm for peanuts.
            (7) Producer.--
                (A) In general.--The term ``producer'' means an owner,
            operator, landlord, tenant, or sharecropper that shares in the
            risk of producing a crop on a farm and is entitled to share in
            the crop available for marketing from the farm, or would have
            shared had the crop been produced.
                (B) Hybrid seed.--In determining whether a grower of hybrid
            seed is a producer, the Secretary shall--
                    (i) not take into consideration the existence of a
                hybrid seed contract; and
                    (ii) ensure that program requirements do not adversely
                affect the ability of the grower to receive a payment under
                this subtitle.
            (8) State.--The term ``State'' means--
                (A) a State;
                (B) the District of Columbia;
                (C) the Commonwealth of Puerto Rico; and
                (D) any other territory or possession of the United States.
            (9) Target price.--The term ``target price'' means the price
        per ton of peanuts used to determine the payment rate for counter-
        cyclical payments.
            (10) United states.--The term ``United States'', when used in a
        geographical sense, means all of the States.
    SEC. 1302. BASE ACRES FOR PEANUTS FOR A FARM.
        (a) Adjustment of Base Acreage for Peanuts.--
            (1) In general.--The Secretary shall provide for an adjustment,
        as appropriate, in the base acres for peanuts for a farm whenever
        any of the following circumstances occur:
                (A) A conservation reserve contract entered into under
            section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831)
            with respect to the farm expires or is voluntarily terminated,
            or was terminated or expired during the period beginning on
            October 1, 2007, and ending on the date of enactment of this
            Act.
                (B) Cropland is released from coverage under a conservation
            reserve contract by the Secretary, or was released during the
            period beginning on October 1, 2007, and ending on the date of
            enactment of this Act.
                (C) The producer has eligible pulse crop acreage, which
            shall be determined in the same manner as eligible oilseed
            acreage under section 1101(a)(2) of the Farm Security and Rural
            Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
                (D) The producer has eligible oilseed acreage as the result
            of the Secretary designating additional oilseeds, which shall
            be determined in the same manner as eligible oilseed acreage
            under section 1101(a)(2) of the Farm Security and Rural
            Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
            (2) Special conservation reserve acreage payment rules.--For
        the crop year in which a base acres for peanuts adjustment under
        subparagraph (A) or (B) of paragraph (1) is first made, the owner
        of the farm shall elect to receive either direct payments and
        counter-cyclical payments with respect to the acreage added to the
        farm under this subsection or a prorated payment under the
        conservation reserve contract, but not both.
        (b) Prevention of Excess Base Acres for Peanuts.--
            (1) Required reduction.--If the sum of the base acres for
        peanuts for a farm, together with the acreage described in
        paragraph (2), exceeds the actual cropland acreage of the farm, the
        Secretary shall reduce the base acres for peanuts for the farm or
        the base acres for 1 or more covered commodities for the farm so
        that the sum of the base acres for peanuts and acreage described in
        paragraph (2) does not exceed the actual cropland acreage of the
        farm.
            (2) Other acreage.--For purposes of paragraph (1), the
        Secretary shall include the following:
                (A) Any base acres for the farm for a covered commodity.
                (B) Any acreage on the farm enrolled in the conservation
            reserve program or wetlands reserve program under chapter 1 of
            subtitle D of title XII of the Food Security Act of 1985 (16
            U.S.C. 3830 et seq.).
                (C) Any other acreage on the farm enrolled in a Federal
            conservation program for which payments are made in exchange
            for not producing an agricultural commodity on the acreage.
                (D) Any eligible pulse crop acreage, which shall be
            determined in the same manner as eligible oilseed acreage under
            section 1101(a)(2) of the Farm Security and Rural Investment
            Act of 2002 (7 U.S.C. 7911(a)(2)).
                (E) If the Secretary designates additional oilseeds, any
            eligible oilseed acreage, which shall be determined in the same
            manner as eligible oilseed acreage under section 1101(a)(2) of
            the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
            7911(a)(2)).
            (3) Selection of acres.--The Secretary shall give the owner of
        the farm the opportunity to select the base acres for peanuts or
        the base acres for covered commodities against which the reduction
        required by paragraph (1) will be made.
            (4) Exception for double-cropped acreage.--In applying
        paragraph (1), the Secretary shall make an exception in the case of
        double cropping, as determined by the Secretary.
            (5) Coordinated application of requirements.--The Secretary
        shall take into account section 1101(b) when applying the
        requirements of this subsection.
        (c) Reduction in Base Acres.--
            (1) Reduction at option of owner.--
                (A) In general.--The owner of a farm may reduce, at any
            time, the base acres for peanuts for the farm.
                (B) Effect of reduction.--A reduction under subparagraph
            (A) shall be permanent and made in a manner prescribed by the
            Secretary.
            (2) Required action by secretary.--
                (A) In general.--The Secretary shall proportionately reduce
            base acres on a farm for peanuts for land that has been
            subdivided and developed for multiple residential units or
            other nonfarming uses if the size of the tracts and the density
            of the subdivision is such that the land is unlikely to return
            to the previous agricultural use, unless the producers on the
            farm demonstrate that the land--
                    (i) remains devoted to commercial agricultural
                production; or
                    (ii) is likely to be returned to the previous
                agricultural use.
                (B) Requirement.--The Secretary shall establish procedures
            to identify land described in subparagraph (A).
            (3) Review and report.--Each year, to ensure, to the maximum
        extent practicable, that payments are received only by producers,
        the Secretary shall submit to Congress a report that describes the
        results of the actions taken under paragraph (2).
        (d) Treatment of Farms With Limited Base Acres.--
            (1) Prohibition on payments.--Except as provided in paragraph
        (2) and notwithstanding any other provision of this title, a
        producer on a farm may not receive direct payments, counter-
        cyclical payments, or average crop revenue election payments if the
        sum of the base acres of the farm is 10 acres or less, as
        determined by the Secretary.
            (2) Exceptions.--Paragraph (1) shall not apply to a farm owned
        by--
                (A) a socially disadvantaged farmer or rancher (as defined
            in section 355(e) of the Consolidated Farm and Rural
            Development Act (7 U.S.C. 2003(e)); or
                (B) a limited resource farmer or rancher, as defined by the
            Secretary.
            (3) Data collection and publication.--The Secretary shall--
                (A) collect and publish segregated data and survey
            information about the farm profiles, utilization of land, and
            crop production; and
                (B) perform an evaluation on the supply and price of fruits
            and vegetables based on the effects of suspension of base acres
            under this section.
    SEC. 1303. AVAILABILITY OF DIRECT PAYMENTS FOR PEANUTS.
        (a) Payment Required.--For each of the 2008 through 2012 crop years
    for peanuts, the Secretary shall make direct payments to the producers
    on a farm for which a payment yield and base acres for peanuts are
    established.
        (b) Payment Rate.--Except as provided in section 1105, the payment
    rate used to make direct payments with respect to peanuts for a crop
    year shall be equal to $36 per ton.
        (c) Payment Amount.--The amount of the direct payment to be paid to
    the producers on a farm for peanuts for a crop year shall be equal to
    the product of the following:
            (1) The payment rate specified in subsection (b).
            (2) The payment acres on the farm.
            (3) The payment yield for the farm.
        (d) Time for Payment.--
            (1) In general.--Except as provided in paragraph (2), in the
        case of each of the 2008 through 2012 crop years, the Secretary may
        not make direct payments under this section before October 1 of the
        calendar year in which the crop is harvested.
            (2) Advance payments.--
                (A) Option.--
                    (i) In general.--At the option of the producers on a
                farm, the Secretary shall pay in advance up to 22 percent
                of the direct payment for peanuts for any of the 2008
                through 2011 crop years to the producers on a farm.
                    (ii) 2008 crop year.--If the producers on a farm elect
                to receive advance direct payments under clause (i) for
                peanuts for the 2008 crop year, as soon as practicable
                after the election, the Secretary shall make the advance
                direct payment to the producers on the farm.
                (B) Month.--
                    (i) Selection.--Subject to clauses (ii) and (iii), the
                producers on a farm shall select the month during which the
                advance payment for a crop year will be made.
                    (ii) Options.--The month selected may be any month
                during the period--

                        (I) beginning on December 1 of the calendar year
                    before the calendar year in which the crop of peanuts
                    is harvested; and
                        (II) ending during the month within which the
                    direct payment would otherwise be made.

                    (iii) Change.--The producers on a farm may change the
                selected month for a subsequent advance payment by
                providing advance notice to the Secretary.
            (3) Repayment of advance payments.--If a producer on a farm
        that receives an advance direct payment for a crop year ceases to
        be a producer on that farm, or the extent to which the producer
        shares in the risk of producing a crop changes, before the date the
        remainder of the direct payment is made, the producer shall be
        responsible for repaying the Secretary the applicable amount of the
        advance payment, as determined by the Secretary.
    SEC. 1304. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS FOR PEANUTS.
        (a) Payment Required.--Except as provided in section 1105, for each
    of the 2008 through 2012 crop years for peanuts, the Secretary shall
    make counter-cyclical payments to producers on farms for which payment
    yields and base acres for peanuts are established if the Secretary
    determines that the effective price for peanuts is less than the target
    price for peanuts.
        (b) Effective Price.--For purposes of subsection (a), the effective
    price for peanuts is equal to the sum of the following:
            (1) The higher of the following:
                (A) The national average market price for peanuts received
            by producers during the 12-month marketing year for peanuts, as
            determined by the Secretary.
                (B) The national average loan rate for a marketing
            assistance loan for peanuts in effect for the applicable period
            under this subtitle.
            (2) The payment rate in effect for peanuts under section 1303
        for the purpose of making direct payments.
        (c) Target Price.--For purposes of subsection (a), the target price
    for peanuts shall be equal to $495 per ton.
        (d) Payment Rate.--The payment rate used to make counter-cyclical
    payments for a crop year shall be equal to the difference between--
            (1) the target price for peanuts; and
            (2) the effective price determined under subsection (b) for
        peanuts.
        (e) Payment Amount.--If counter-cyclical payments are required to
    be paid for any of the 2008 through 2012 crops of peanuts, the amount
    of the counter-cyclical payment to be paid to the producers on a farm
    for that crop year shall be equal to the product of the following:
            (1) The payment rate specified in subsection (d).
            (2) The payment acres on the farm.
            (3) The payment yield for the farm.
        (f) Time for Payments.--
            (1) General rule.--Except as provided in paragraph (2), if the
        Secretary determines under subsection (a) that counter-cyclical
        payments are required to be made under this section for a crop of
        peanuts, beginning October 1, or as soon as practicable after the
        end of the marketing year, the Secretary shall make the counter-
        cyclical payments for the crop.
            (2) Availability of partial payments.--
                (A) In general.--If, before the end of the 12-month
            marketing year, the Secretary estimates that counter-cyclical
            payments will be required under this section for a crop year,
            the Secretary shall give producers on a farm the option to
            receive partial payments of the counter-cyclical payment
            projected to be made for the crop.
                (B) Election.--
                    (i) In general.--The Secretary shall allow producers on
                a farm to make an election to receive partial payments
                under subparagraph (A) at any time but not later than 60
                days prior to the end of the marketing year for the crop.
                    (ii) Date of issuance.--The Secretary shall issue the
                partial payment after the date of an announcement by the
                Secretary but not later than 30 days prior to the end of
                the marketing year.
            (3) Time for partial payments.--When the Secretary makes
        partial payments for any of the 2008 through 2010 crop years--
                (A) the first partial payment shall be made after
            completion of the first 180 days of the marketing year for that
            crop; and
                (B) the final partial payment shall be made beginning
            October 1, or as soon as practicable thereafter, after the end
            of the applicable marketing year for that crop.
            (4) Amount of partial payments.--
                (A) First partial payment.--For each of the 2008 through
            2010 crop years, the first partial payment under paragraph (3)
            to the producers on a farm may not exceed 40 percent of the
            projected counter-cyclical payment for the crop year, as
            determined by the Secretary.
                (B) Final payment.--The final payment for a crop year shall
            be equal to the difference between--
                    (i) the actual counter-cyclical payment to be made to
                the producers for that crop year; and
                    (ii) the amount of the partial payment made to the
                producers under subparagraph (A).
            (5) Repayment.--The producers on a farm that receive a partial
        payment under this subsection for a crop year shall repay to the
        Secretary the amount, if any, by which the total of the partial
        payments exceed the actual counter-cyclical payment to be made for
        that crop year.
    SEC. 1305. PRODUCER AGREEMENT REQUIRED AS CONDITION ON PROVISION OF
    PAYMENTS.
        (a) Compliance With Certain Requirements.--
            (1) Requirements.--Before the producers on a farm may receive
        direct payments or counter-cyclical payments under this subtitle,
        or average crop revenue election payments under section 1105, with
        respect to the farm, the producers shall agree, during the crop
        year for which the payments are made and in exchange for the
        payments--
                (A) to comply with applicable conservation requirements
            under subtitle B of title XII of the Food Security Act of 1985
            (16 U.S.C. 3811 et seq.);
                (B) to comply with applicable wetland protection
            requirements under subtitle C of title XII of that Act (16
            U.S.C. 3821 et seq.);
                (C) to comply with the planting flexibility requirements of
            section 1306;
                (D) to use the land on the farm, in a quantity equal to the
            attributable base acres for peanuts and any base acres for the
            farm under subtitle A, for an agricultural or conserving use,
            and not for a nonagricultural commercial, industrial, or
            residential use, as determined by the Secretary; and
                (E) to effectively control noxious weeds and otherwise
            maintain the land in accordance with sound agricultural
            practices, as determined by the Secretary, if the agricultural
            or conserving use involves the noncultivation of any portion of
            the land referred to in subparagraph (D).
            (2) Compliance.--The Secretary may issue such rules as the
        Secretary considers necessary to ensure producer compliance with
        the requirements of paragraph (1).
            (3) Modification.--At the request of the transferee or owner,
        the Secretary may modify the requirements of this subsection if the
        modifications are consistent with the objectives of this
        subsection, as determined by the Secretary.
        (b) Transfer or Change of Interest in Farm.--
            (1) Termination.--
                (A) In general.--Except as provided in paragraph (2), a
            transfer of (or change in) the interest of the producers on a
            farm in the base acres for peanuts for which direct payments or
            counter-cyclical payments are made, or on which average crop
            revenue election payments are based, shall result in the
            termination of the direct payments, counter-cyclical payments,
            or average crop revenue election payments to the extent the
            payments are made or based on the base acres, unless the
            transferee or owner of the acreage agrees to assume all
            obligations under subsection (a).
                (B) Effective date.--The termination shall take effect on
            the date determined by the Secretary.
            (2) Exception.--If a producer entitled to a direct payment,
        counter-cyclical payment, or average crop revenue election payment
        dies, becomes incompetent, or is otherwise unable to receive the
        payment, the Secretary shall make the payment, in accordance with
        rules issued by the Secretary.
        (c) Acreage Reports.--
            (1) In general.--As a condition on the receipt of any benefits
        under this subtitle, the Secretary shall require producers on a
        farm to submit to the Secretary annual acreage reports with respect
        to all cropland on the farm.
            (2) Penalties.--No penalty with respect to benefits under this
        subtitle shall be assessed against the producers on a farm for an
        inaccurate acreage report unless the producers on the farm
        knowingly and willfully falsified the acreage report.
        (d) Tenants and Sharecroppers.--In carrying out this subtitle, the
    Secretary shall provide adequate safeguards to protect the interests of
    tenants and sharecroppers.
        (e) Sharing of Payments.--The Secretary shall provide for the
    sharing of direct payments, counter-cyclical payments, or average crop
    revenue election payments under section 1105 among the producers on a
    farm on a fair and equitable basis.
    SEC. 1306. 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.--For each of the 2008 through 2012 crops of
        peanuts, the Secretary shall make available to producers on a farm
        nonrecourse marketing assistance loans for peanuts produced on the
        farm.
            (2) Terms and conditions.--The loans shall be made under terms
        and conditions that are prescribed by the Secretary and at the loan
        rate established under subsection (b).
            (3) Eligible production.--The producers on a farm shall be
        eligible for a marketing assistance loan under this subsection for
        any quantity of peanuts produced on the farm.
            (4) Options for obtaining loan.--A marketing assistance loan
        under this subsection, and loan deficiency payments under
        subsection (e), may be obtained at the option of the producers on a
        farm through--
                (A) a designated marketing association or marketing
            cooperative of producers that is approved by the Secretary; or
                (B) the Farm Service Agency.
            (5) Storage of loan peanuts.--As a condition on the Secretary's
        approval of an individual or entity to provide storage for peanuts
        for which a marketing assistance loan is made under this section,
        the individual or entity shall agree--
                (A) to provide such storage on a nondiscriminatory basis;
            and
                (B) to comply with such additional requirements as the
            Secretary considers appropriate to accomplish the purposes of
            this section and promote fairness in the administration of the
            benefits of this section.
            (6) Storage, handling, and associated costs.--
                (A) In general.--Beginning with the 2008 crop of peanuts,
            to ensure proper storage of peanuts for which a loan is made
            under this section, the Secretary shall pay handling and other
            associated costs (other than storage costs) incurred at the
            time at which the peanuts are placed under loan, as determined
            by the Secretary.
                (B) Redemption and forfeiture.--The Secretary shall--
                    (i) require the repayment of handling and other
                associated costs paid under subparagraph (A) for all
                peanuts pledged as collateral for a loan that is redeemed
                under this section; and
                    (ii) pay storage, handling, and other associated costs
                for all peanuts pledged as collateral that are forfeited
                under this section.
            (7) Marketing.--A marketing association or cooperative may
        market peanuts for which a loan is made under this section in any
        manner that conforms to consumer needs, including the separation of
        peanuts by type and quality.
        (b) Loan Rate.--Except as provided in section 1105, the loan rate
    for a marketing assistance loan for peanuts under subsection (a) shall
    be equal to $355 per ton.
        (c) Term of Loan.--
            (1) In general.--A marketing assistance loan for peanuts under
        subsection (a) shall have a term of 9 months beginning on the first
        day of the first month after the month in which the loan is made.
            (2) Extensions prohibited.--The Secretary may not extend the
        term of a marketing assistance loan for peanuts under subsection
        (a).
        (d) Repayment Rate.--
            (1) In general.--The Secretary shall permit producers on a farm
        to repay a marketing assistance loan for peanuts under subsection
        (a) at a rate that is the lesser of--
                (A) the loan rate established for peanuts under subsection
            (b), plus interest (determined in accordance with section 163
            of the Federal Agriculture Improvement and Reform Act of 1996
            (7 U.S.C. 7283)); or
                (B) a rate that the Secretary determines will--
                    (i) minimize potential loan forfeitures;
                    (ii) minimize the accumulation of stocks of peanuts by
                the Federal Government;
                    (iii) minimize the cost incurred by the Federal
                Government in storing peanuts; and
                    (iv) allow peanuts produced in the United States to be
                marketed freely and competitively, both domestically and
                internationally.
            (2) Authority to temporarily adjust repayment rates.--
                (A) Adjustment authority.--In the event of a severe
            disruption to marketing, transportation, or related
            infrastructure, the Secretary may modify the repayment rate
            otherwise applicable under this subsection for marketing
            assistance loans for peanuts under subsection (a).
                (B) Duration.--An adjustment made under subparagraph (A) in
            the repayment rate for marketing assistance loans for peanuts
            shall be in effect on a short-term and temporary basis, as
            determined by the Secretary.
        (e) Loan Deficiency Payments.--
            (1) Availability.--The Secretary may make loan deficiency
        payments available to producers on a farm that, although eligible
        to obtain a marketing assistance loan for peanuts under subsection
        (a), agree to forgo obtaining the loan for the peanuts in return
        for loan deficiency payments under this subsection.
            (2) Computation.--A loan deficiency payment under this
        subsection shall be computed by multiplying--
                (A) the payment rate determined under paragraph (3) for
            peanuts; by
                (B) the quantity of the peanuts produced by the producers,
            excluding any quantity for which the producers obtain a
            marketing assistance loan under subsection (a).
            (3) Payment rate.--For purposes of this subsection, the payment
        rate shall be the amount by which--
                (A) the loan rate established under subsection (b); exceeds
                (B) the rate at which a loan may be repaid under subsection
            (d).
            (4) Effective date for payment rate determination.--The
        Secretary shall determine the amount of the loan deficiency payment
        to be made under this subsection to the producers on a farm with
        respect to a quantity of peanuts using the payment rate in effect
        under paragraph (3) as of the date the producers request the
        payment.
        (f) Compliance With Conservation and Wetlands Requirements.--As a
    condition of the receipt of a marketing assistance loan under
    subsection (a), the producer shall comply with applicable conservation
    requirements under subtitle B of title XII of the Food Security Act of
    1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection
    requirements under subtitle C of title XII of that Act (16 U.S.C. 3821
    et seq.) during the term of the loan.
        (g) Reimbursable Agreements and Payment of Administrative
    Expenses.--The Secretary may implement any reimbursable agreements or
    provide for the payment of administrative expenses under this subtitle
    only in a manner that is consistent with such activities in regard to
    other commodities.
    SEC. 1308. ADJUSTMENTS OF LOANS.
        (a) Adjustment Authority.--The Secretary may make appropriate
    adjustments in the loan rates for peanuts for differences in grade,
    type, quality, location, and other factors.
        (b) Manner of Adjustment.--The adjustments under subsection (a)
    shall, to the maximum extent practicable, be made in such a manner that
    the average loan level for peanuts will, on the basis of the
    anticipated incidence of the factors, be equal to the level of support
    determined in accordance with this subtitle and subtitles B, D, and E.
        (c) Adjustment on County Basis.--
            (1) In general.--Subject to paragraph (2), the Secretary may
        establish loan rates for a crop of peanuts for producers in
        individual counties in a manner that results in the lowest loan
        rate being 95 percent of the national average loan rate, if those
        loan rates do not result in an increase in outlays.
            (2) Prohibition.--Adjustments under this subsection shall not
        result in an increase in the national average loan rate for any
        year.

                               Subtitle D--Sugar

    SEC. 1401. SUGAR PROGRAM.
        (a) In General.--Section 156 of the Federal Agriculture Improvement
    and Reform Act of 1996 (7 U.S.C. 7272) is amended to read as follows:
        ``SEC. 156. SUGAR PROGRAM.
        ``(a) Sugarcane.--The Secretary shall make loans available to
    processors of domestically grown sugarcane at a rate equal to--
            ``(1) 18.00 cents per pound for raw cane sugar for the 2008
        crop year;
            ``(2) 18.25 cents per pound for raw cane sugar for the 2009
        crop year;
            ``(3) 18.50 cents per pound for raw cane sugar for the 2010
        crop year;
            ``(4) 18.75 cents per pound for raw cane sugar for the 2011
        crop year; and
            ``(5) 18.75 cents per pound for raw cane sugar for the 2012
        crop year.
        ``(b) Sugar Beets.--The Secretary shall make loans available to
    processors of domestically grown sugar beets at a rate equal to--
            ``(1) 22.9 cents per pound for refined beet sugar for the 2008
        crop year; and
            ``(2) a rate that is equal to 128.5 percent of the loan rate
        per pound of raw cane sugar for the applicable crop year under
        subsection (a) for each of the 2009 through 2012 crop years.
        ``(c) Term of Loans.--
            ``(1) In general.--A loan under this section during any fiscal
        year shall be made available not earlier than the beginning of the
        fiscal year and shall mature at the earlier of--
                ``(A) the end of the 9-month period beginning on the first
            day of the first month after the month in which the loan is
            made; or
                ``(B) the end of the fiscal year in which the loan is made.
            ``(2) Supplemental loans.--In the case of a loan made under
        this section in the last 3 months of a fiscal year, the processor
        may repledge the sugar as collateral for a second loan in the
        subsequent fiscal year, except that the second loan shall--
                ``(A) be made at the loan rate in effect at the time the
            first loan was made; and
                ``(B) mature in 9 months less the quantity of time that the
            first loan was in effect.
        ``(d) Loan Type; Processor Assurances.--
            ``(1) Nonrecourse loans.--The Secretary shall carry out this
        section through the use of nonrecourse loans.
            ``(2) Processor assurances.--
                ``(A) In general.--The Secretary shall obtain from each
            processor that receives a loan under this section such
            assurances as the Secretary considers adequate to ensure that
            the processor will provide payments to producers that are
            proportional to the value of the loan received by the processor
            for the sugar beets and sugarcane delivered by producers to the
            processor.
                ``(B) Minimum payments.--
                    ``(i) In general.--Subject to clause (ii), the
                Secretary may establish appropriate minimum payments for
                purposes of this paragraph.
                    ``(ii) Limitation.--In the case of sugar beets, the
                minimum payment established under clause (i) shall not
                exceed the rate of payment provided for under the
                applicable contract between a sugar beet producer and a
                sugar beet processor.
            ``(3) Administration.--The Secretary may not impose or enforce
        any prenotification requirement, or similar administrative
        requirement not otherwise in effect on May 13, 2002, that has the
        effect of preventing a processor from electing to forfeit the loan
        collateral (of an acceptable grade and quality) on the maturity of
        the loan.
        ``(e) Loans for In-Process Sugar.--
            ``(1) Definition of in-process sugars and syrups.--In this
        subsection, the term `in-process sugars and syrups' does not
        include raw sugar, liquid sugar, invert sugar, invert syrup, or
        other finished product that is otherwise eligible for a loan under
        subsection (a) or (b).
            ``(2) Availability.--The Secretary shall make nonrecourse loans
        available to processors of a crop of domestically grown sugarcane
        and sugar beets for in-process sugars and syrups derived from the
        crop.
            ``(3) Loan rate.--The loan rate shall be equal to 80 percent of
        the loan rate applicable to raw cane sugar or refined beet sugar,
        as determined by the Secretary on the basis of the source material
        for the in-process sugars and syrups.
            ``(4) Further processing on forfeiture.--
                ``(A) In general.--As a condition of the forfeiture of in-
            process sugars and syrups serving as collateral for a loan
            under paragraph (2), the processor shall, within such
            reasonable time period as the Secretary may prescribe and at no
            cost to the Commodity Credit Corporation, convert the in-
            process sugars and syrups into raw cane sugar or refined beet
            sugar of acceptable grade and quality for sugars eligible for
            loans under subsection (a) or (b).
                ``(B) Transfer to corporation.--Once the in-process sugars
            and syrups are fully processed into raw cane sugar or refined
            beet sugar, the processor shall transfer the sugar to the
            Commodity Credit Corporation.
                ``(C) Payment to processor.--On transfer of the sugar, the
            Secretary shall make a payment to the processor in an amount
            equal to the amount obtained by multiplying--
                    ``(i) the difference between--

                        ``(I) the loan rate for raw cane sugar or refined
                    beet sugar, as appropriate; and
                        ``(II) the loan rate the processor received under
                    paragraph (3); by

                    ``(ii) the quantity of sugar transferred to the
                Secretary.
            ``(5) Loan conversion.--If the processor does not forfeit the
        collateral as described in paragraph (4), but instead further
        processes the in-process sugars and syrups into raw cane sugar or
        refined beet sugar and repays the loan on the in-process sugars and
        syrups, the processor may obtain a loan under subsection (a) or (b)
        for the raw cane sugar or refined beet sugar, as appropriate.
            ``(6) Term of loan.--The term of a loan made under this
        subsection for a quantity of in-process sugars and syrups, when
        combined with the term of a loan made with respect to the raw cane
        sugar or refined beet sugar derived from the in-process sugars and
        syrups, may not exceed 9 months, consistent with subsection (c).
        ``(f) Avoiding Forfeitures; Corporation Inventory Disposition.--
            ``(1) In general.--Subject to subsection (d)(3), to the maximum
        extent practicable, the Secretary shall operate the program
        established under this section at no cost to the Federal Government
        by avoiding the forfeiture of sugar to the Commodity Credit
        Corporation.
            ``(2) Inventory disposition.--
                ``(A) In general.--To carry out paragraph (1), the
            Commodity Credit Corporation may accept bids to obtain raw cane
            sugar or refined beet sugar in the inventory of the Commodity
            Credit Corporation from (or otherwise make available such
            commodities, on appropriate terms and conditions, to)
            processors of sugarcane and processors of sugar beets (acting
            in conjunction with the producers of the sugarcane or sugar
            beets processed by the processors) in return for the reduction
            of production of raw cane sugar or refined beet sugar, as
            appropriate.
                ``(B) Bioenergy feedstock.--If a reduction in the quantity
            of production accepted under subparagraph (A) involves sugar
            beets or sugarcane that has already been planted, the sugar
            beets or sugarcane so planted may not be used for any
            commercial purpose other than as a bioenergy feedstock.
                ``(C) Additional authority.--The authority provided under
            this paragraph is in addition to any authority of the Commodity
            Credit Corporation under any other law.
        ``(g) Information Reporting.--
            ``(1) Duty of processors and refiners to report.--A sugarcane
        processor, cane sugar refiner, and sugar beet processor shall
        furnish the Secretary, on a monthly basis, such information as the
        Secretary may require to administer sugar programs, including the
        quantity of purchases of sugarcane, sugar beets, and sugar, and
        production, importation, distribution, and stock levels of sugar.
            ``(2) Duty of producers to report.--
                ``(A) Proportionate share states.--As a condition of a loan
            made to a processor for the benefit of a producer, the
            Secretary shall require each producer of sugarcane located in a
            State (other than the Commonwealth of Puerto Rico) in which
            there are in excess of 250 producers of sugarcane to report, in
            the manner prescribed by the Secretary, the sugarcane yields
            and acres planted to sugarcane of the producer.
                ``(B) Other states.--The Secretary may require each
            producer of sugarcane or sugar beets not covered by
            subparagraph (A) to report, in a manner prescribed by the
            Secretary, the yields of, and acres planted to, sugarcane or
            sugar beets, respectively, of the producer.
            ``(3) Duty of importers to report.--
                ``(A) In general.--Except as provided in subparagraph (B),
            the Secretary shall require an importer of sugars, syrups, or
            molasses to be used for human consumption or to be used for the
            extraction of sugar for human consumption to report, in the
            manner prescribed by the Secretary, the quantities of the
            products imported by the importer and the sugar content or
            equivalent of the products.
                ``(B) Tariff-rate quotas.--Subparagraph (A) shall not apply
            to sugars, syrups, or molasses that are within the quantities
            of tariff-rate quotas that are subject to the lower rate of
            duties.
            ``(4) Collection of information on mexico.--
                ``(A) Collection.--The Secretary shall collect--
                    ``(i) information on the production, consumption,
                stocks, and trade of sugar in Mexico, including United
                States exports of sugar to Mexico; and
                    ``(ii) publicly available information on Mexican
                production, consumption, and trade of high fructose corn
                syrups.
                ``(B) Publication.--The data collected under subparagraph
            (A) shall be published in each edition of the World
            Agricultural Supply and Demand Estimates.
            ``(5) Penalty.--Any person willfully failing or refusing to
        furnish the information required to be reported by paragraph (1),
        (2), or (3), or furnishing willfully false information, shall be
        subject to a civil penalty of not more than $10,000 for each such
        violation.
            ``(6) Monthly reports.--Taking into consideration the
        information received under this subsection, the Secretary shall
        publish on a monthly basis composite data on production, imports,
        distribution, and stock levels of sugar.
        ``(h) Substitution of Refined Sugar.--For purposes of Additional
    U.S. Note 6 to chapter 17 of the Harmonized Tariff Schedule of the
    United States and the reexport programs and polyhydric alcohol program
    administered by the Secretary, all refined sugars (whether derived from
    sugar beets or sugarcane) produced by cane sugar refineries and beet
    sugar processors shall be fully substitutable for the export of sugar
    and sugar-containing products under those programs.
        ``(i) Effective Period.--This section shall be effective only for
    the 2008 through 2012 crops of sugar beets and sugarcane.''.
        (b) Transition.--The Secretary shall make loans for raw cane sugar
    and refined beet sugar available for the 2007 crop year on the terms
    and conditions provided in section 156 of the Federal Agriculture
    Improvement and Reform Act of 1996 (7 U.S.C. 7272), as in effect on the
    day before the date of enactment of this Act.
    SEC. 1402. UNITED STATES MEMBERSHIP IN THE INTERNATIONAL SUGAR
    ORGANIZATION.
        The Secretary shall work with the Secretary of State to restore
    United States membership in the International Sugar Organization not
    later than 1 year after the date of enactment of this Act.
    SEC. 1403. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.
        (a) Definitions.--Section 359a of the Agricultural Adjustment Act
    of 1938 (7 U.S.C. 1359aa) is amended--
            (1) by redesignating paragraphs (1), (2), (3), and (4) as
        paragraphs (2), (4), (5), and (6), respectively;
            (2) by inserting before paragraph (2) (as so redesignated) the
        following:
            ``(1) Human consumption.--The term `human consumption', when
        used in the context of a reference to sugar (whether in the form of
        sugar, in-process sugar, syrup, molasses, or in some other form)
        for human consumption, includes sugar for use in human food,
        beverages, or similar products.''; and
            (3) by inserting after paragraph (2) (as so redesignated) the
        following:
            ``(3) Market.--
                ``(A) In general.--The term `market' means to sell or
            otherwise dispose of in commerce in the United States.
                ``(B) Inclusions.--The term `market' includes--
                    ``(i) the forfeiture of sugar under the loan program
                for sugar established under section 156 of the Federal
                Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
                7272);
                    ``(ii) with respect to any integrated processor and
                refiner, the movement of raw cane sugar into the refining
                process; and
                    ``(iii) the sale of sugar for the production of ethanol
                or other bioenergy product, if the disposition of the sugar
                is administered by the Secretary under section 9010 of the
                Farm Security and Rural Investment Act of 2002.
                ``(C) Marketing year.--Forfeited sugar described in
            subparagraph (B)(i) shall be considered to have been marketed
            during the crop year for which a loan is made under the loan
            program described in that subparagraph.''.
        (b) Flexible Marketing Allotments for Sugar.--Section 359b of the
    Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb) is amended to
    read as follows:
    ``SEC. 359b. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.
        ``(a) Sugar Estimates.--
            ``(1) 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 for each of the 2002 through 2007 crop years,
        the marketing allotments shall not apply to sugar sold--
                ``(A) to facilitate the exportation of the sugar to a
            foreign country, except that the exports of sugar shall not be
            eligible to receive credits under reexport programs for refined
            sugar or sugar containing products administered by the
            Secretary;
                ``(B) to enable another processor to fulfill an allocation
            established for that processor; or
                ``(C) for uses other than domestic human consumption,
            except for the sale of sugar for the production of ethanol or
            other bioenergy if the disposition of the sugar is administered
            by the Secretary under section 9010 of the Farm Security and
            Rural Investment Act of 2002.
            ``(3) 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 (G), (H), and
        (I) and inserting the following:
                ``(G) Sale of factories of a processor to another
            processor.--
                    ``(i) Effect of sale.--Subject to subparagraphs (E) and
                (F), if 1 or more factories of a processor of beet sugar
                (but not all of the assets of the processor) are sold to
                another processor of beet sugar during a crop year, the
                Secretary shall assign a pro rata portion of the allocation
                of the seller to the allocation of the buyer to reflect the
                historical contribution of the production of the sold 1 or
                more factories to the total allocation of the seller,
                unless the buyer and the seller have agreed upon the
                transfer of a different portion of the allocation of the
                seller, in which case, the Secretary shall transfer that
                portion agreed upon by the buyer and seller.
                    ``(ii) Application of allocation.--The assignment of
                the allocation under clause (i) shall apply--

                        ``(I) during the remainder of the crop year for
                    which the sale described in clause (i) occurs; and
                        ``(II) during each subsequent crop year.

                    ``(iii) Use of other factories to fill allocation.--If
                the assignment of the allocation under clause (i) to the
                buyer for the 1 or more purchased factories cannot be
                filled by the production of the 1 or more purchased
                factories, the remainder of the allocation may be filled by
                beet sugar produced by the buyer from other factories of
                the buyer.
                ``(H) New entrants starting production, reopening, or
            acquiring an existing factory with production history.--
                    ``(i) Definition of new entrant.--

                        ``(I) In general.--In this subparagraph, the term
                    `new entrant' means an individual, corporation, or
                    other entity that--

                            ``(aa) does not have an allocation of the beet
                        sugar allotment under this part;
                            ``(bb) is not affiliated with any other
                        individual, corporation, or entity that has an
                        allocation of beet sugar under this part (referred
                        to in this clause as a `third party'); and
                            ``(cc) will process sugar beets produced by
                        sugar beet growers under contract with the new
                        entrant for the production of sugar at the new or
                        re-opened factory that is the basis for the new
                        entrant allocation.

                        ``(II) Affiliation.--For purposes of subclause
                    (I)(bb), a new entrant and a third party shall be
                    considered to be affiliated if--

                            ``(aa) the third party has an ownership
                        interest in the new entrant;
                            ``(bb) the new entrant and the third party have
                        owners in common;
                            ``(cc) the third party has the ability to
                        exercise control over the new entrant by
                        organizational rights, contractual rights, or any
                        other means;
                            ``(dd) the third party has a contractual
                        relationship with the new entrant by which the new
                        entrant will make use of the facilities or assets
                        of the third party; or
                            ``(ee) there are any other similar
                        circumstances by which the Secretary determines
                        that the new entrant and the third party are
                        affiliated.
                    ``(ii) Allocation for a new entrant that has
                constructed a new factory or reopened a factory that was
                not operated since before 1998.--If a new entrant
                constructs a new sugar beet processing factory, or acquires
                and reopens a sugar beet processing factory that last
                processed sugar beets prior to the 1998 crop year and there
                is no allocation currently associated with the factory, the
                Secretary shall--

                        ``(I) assign an allocation for beet sugar to the
                    new entrant that provides a fair and equitable
                    distribution of the allocations for beet sugar so as to
                    enable the new entrant to achieve a factory utilization
                    rate comparable to the factory utilization rates of
                    other similarly-situated processors; and
                        ``(II) reduce the allocations for beet sugar of all
                    other processors on a pro rata basis to reflect the
                    allocation to the new entrant.

                    ``(iii) Allocation for a new entrant that has acquired
                an existing factory with a production history.--

                        ``(I) In general.--If a new entrant acquires an
                    existing factory that has processed sugar beets from
                    the 1998 or subsequent crop year and has a production
                    history, on the mutual agreement of the new entrant and
                    the company currently holding the allocation associated
                    with the factory, the Secretary shall transfer to the
                    new entrant a portion of the allocation of the current
                    allocation holder to reflect the historical
                    contribution of the production of the 1 or more sold
                    factories to the total allocation of the current
                    allocation holder, unless the new entrant and current
                    allocation holder have agreed upon the transfer of a
                    different portion of the allocation of the current
                    allocation holder, in which case, the Secretary shall
                    transfer that portion agreed upon by the new entrant
                    and the current allocation holder.
                        ``(II) Prohibition.--In the absence of a mutual
                    agreement described in subclause (I), the new entrant
                    shall be ineligible for a beet sugar allocation.

                    ``(iv) Appeals.--Any decision made under this
                subsection may be appealed to the Secretary in accordance
                with section 359i.''.
        (e) Reassignment of Deficits.--Section 359e(b) of the Agricultural
    Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is amended in paragraphs
    (1)(D) and (2)(C), by inserting ``of raw cane sugar'' after ``imports''
    each place it appears.
        (f) Provisions Applicable to Producers.--Section 359f(c) of the
    Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(c)) is amended--
            (1) by striking paragraph (8);
            (2) by redesignating paragraphs (1) through (7) as paragraphs
        (2) through (8), respectively;
            (3) by inserting before paragraph (2) (as so redesignated) the
        following:
            ``(1) Definition of seed.--
                ``(A) In general.--In this subsection, the term `seed'
            means only those varieties of seed that are dedicated to the
            production of sugarcane from which is produced sugar for human
            consumption.
                ``(B) Exclusion.--The term `seed' does not include seed of
            a high-fiber cane variety dedicated to other uses, as
            determined by the Secretary'';
            (4) in paragraph (3) (as so redesignated)--
                (A) in the first sentence--
                    (i) by striking ``paragraph (1)'' and inserting
                ``paragraph (2)''; and
                    (ii) by inserting ``sugar produced from'' after
                ``quantity of''; and
                (B) in the second sentence, by striking ``paragraph (7)''
            and inserting ``paragraph (8)'';
            (5) in the first sentence of paragraph (6)(C) (as so
        redesignated), by inserting ``for sugar'' before ``in excess of the
        farm's proportionate share''; and
            (6) in paragraph (8) (as so redesignated), by inserting ``sugar
        from'' after ``the amount of''.
        (g) Special Rules.--Section 359g of the Agricultural Adjustment Act
    of 1938 (7 U.S.C. 1359gg) is amended--
            (1) by striking subsection (a) and inserting the following:
        ``(a) Transfer of Acreage Base History.--
            ``(1) Transfer authorized.--For the purpose of establishing
        proportionate shares for sugarcane farms under section 359f(c), the
        Secretary, on application of any producer, with the written consent
        of all owners of a farm, may transfer the acreage base history of
        the farm to any other parcels of land of the applicant.
            ``(2) Converted acreage base.--
                ``(A) In general.--Sugarcane acreage base established under
            section 359f(c) that has been or is converted to
            nonagricultural use on or after May 13, 2002, may be
            transferred to other land suitable for the production of
            sugarcane that can be delivered to a processor in a
            proportionate share State in accordance with this paragraph.
                ``(B) Notification.--Not later than 90 days after the
            Secretary becomes aware of a conversion of any sugarcane
            acreage base to a nonagricultural use, the Secretary shall
            notify the 1 or more affected landowners of the transferability
            of the applicable sugarcane acreage base.
                ``(C) Initial transfer period.--The owner of the base
            attributable to the acreage at the time of the conversion shall
            be afforded 90 days from the date of the receipt of the
            notification under subparagraph (B) to transfer the base to 1
            or more farms owned by the owner.
                ``(D) 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, and domestic raw cane sugar refining capacity has
            been maximized, the Secretary may increase the tariff-rate
            quota for refined sugars sufficient to accommodate the supply
            increase, if the further increase will not threaten to result
            in the forfeiture of sugar pledged as collateral for a loan
            under section 156 of the Federal Agriculture Improvement and
            Reform Act of 1996 (7 U.S.C. 7272).
            ``(2) On or after april 1.--On or after April 1 of each fiscal
        year--
                ``(A) the Secretary may take action to increase the supply
            of sugar in accordance with sections 359c(b)(2) and 359e(b),
            including an increase in the tariff-rate quota for raw cane
            sugar to accommodate the reassignment to imports; and
                ``(B) if there is still a shortage of sugar in the United
            States market, and marketing of domestic sugar has been
            maximized, the Secretary may increase the tariff-rate quota for
            raw cane sugar if the further increase will not threaten to
            result in the forfeiture of sugar pledged as collateral for a
            loan under section 156 of the Federal Agriculture Improvement
            and Reform Act of 1996 (7 U.S.C. 7272).''.
        (k) Period of Effectiveness.--Part VII of subtitle B of title III
    of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa) (as
    amended by subsection (j)) is amended by adding at the end the
    following:
    ``SEC. 359l. 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.''.
    SEC. 1404. STORAGE FACILITY LOANS.
        Section 1402(c) of the Farm Security and Rural Investment Act of
    2002 (7 U.S.C. 7971(c)) is amended--
            (1) in paragraph (1), by striking ``and'' at the end;
            (2) by redesignating paragraph (2) as paragraph (3);
            (3) by inserting after paragraph (1) the following:
            ``(2) not include any penalty for prepayment; and''; and
            (4) in paragraph (3) (as redesignated by paragraph (2)), by
        inserting ``other'' after ``on such''.
    SEC. 1405. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS.
        Subtitle E of the Federal Agriculture Improvement and Reform Act of
    1996 (7 U.S.C. 7281 et seq.) is amended by adding at the end the
    following:
        ``SEC. 167. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS.
        ``(a) Initial Crop Years.--Notwithstanding any other provision of
    law, for each of the 2008 through 2011 crop years, the Commodity Credit
    Corporation shall establish rates for the storage of forfeited sugar in
    an amount that is not less than--
            ``(1) in the case of refined sugar, 15 cents per hundredweight
        of refined sugar per month; and
            ``(2) in the case of raw cane sugar, 10 cents per hundredweight
        of raw cane sugar per month.
        ``(b) Subsequent Crop Years.--For each of the 2012 and subsequent
    crop years, the Commodity Credit Corporation shall establish rates for
    the storage of forfeited sugar in the same manner as was used on the
    day before the date of enactment of this section.''.

                               Subtitle E--Dairy

    SEC. 1501. DAIRY PRODUCT PRICE SUPPORT PROGRAM.
        (a) Definition of Net Removals.--In this section, the term ``net
    removals'' means--
            (1) the sum of--
                (A) the quantity of a product described in subsection (b)
            purchased by the Commodity Credit Corporation under this
            section; and
                (B) the quantity of the product exported under section 153
            of the Food Security Act of 1985 (15 U.S.C. 713a-14); less
            (2) the quantity of the product sold for unrestricted use by
        the Commodity Credit Corporation.
        (b) Support Activities.--During the period beginning on January 1,
    2008, and ending December 31, 2012, the Secretary shall support the
    price of cheddar cheese, butter, and nonfat dry milk through the
    purchase of such products made from milk produced in the United States.
        (c) Purchase Price.--To carry out subsection (b) during the period
    specified in that subsection, the Secretary shall purchase--
            (1) cheddar cheese in blocks at not less than $1.13 per pound;
            (2) cheddar cheese in barrels at not less than $1.10 per pound;
            (3) butter at not less than $1.05 per pound; and
            (4) nonfat dry milk at not less than $0.80 per pound.
        (d) Temporary Price Adjustment to Avoid Excess Inventories.--
            (1) Adjustments authorized.--The Secretary may adjust the
        minimum purchase prices established under subsection (c) only as
        permitted under this subsection.
            (2) Cheese inventories in excess of 200,000,000 pounds.--If net
        removals for a period of 12 consecutive months exceed 200,000,000
        pounds of cheese, but do not exceed 400,000,000 pounds, the
        Secretary may reduce the purchase prices under paragraphs (1) and
        (2) of subsection (c) during the immediately following month by not
        more than 10 cents per pound.
            (3) Cheese inventories in excess of 400,000,000 pounds.--If net
        removals for a period of 12 consecutive months exceed 400,000,000
        pounds of cheese, the Secretary may reduce the purchase prices
        under paragraphs (1) and (2) of subsection (c) during the
        immediately following month by not more than 20 cents per pound.
            (4) Butter inventories in excess of 450,000,000 pounds.--If net
        removals for a period of 12 consecutive months exceed 450,000,000
        pounds of butter, but do not exceed 650,000,000 pounds, the
        Secretary may reduce the purchase price under subsection (c)(3)
        during the immediately following month by not more than 10 cents
        per pound.
            (5) Butter inventories in excess of 650,000,000 pounds.--If net
        removals for a period of 12 consecutive months exceed 650,000,000
        pounds of butter, the Secretary may reduce the purchase price under
        subsection (c)(3) during the immediately following month by not
        more than 20 cents per pound.
            (6) Nonfat dry milk inventories in excess of 600,000,000
        pounds.--If net removals for a period of 12 consecutive months
        exceed 600,000,000 pounds of nonfat dry milk, but do not exceed
        800,000,000 pounds, the Secretary may reduce the purchase price
        under subsection (c)(4) during the immediately following month by
        not more than 5 cents per pound.
            (7) Nonfat dry milk inventories in excess of 800,000,000
        pounds.--If net removals for a period of 12 consecutive months
        exceed 800,000,000 pounds of nonfat dry milk, the Secretary may
        reduce the purchase price under subsection (c)(4) during the
        immediately following month by not more than 10 cents per pound.
        (e) Uniform Purchase Price.--The prices that the Secretary pays for
    cheese, butter, or nonfat dry milk, respectively, under subsection (b)
    shall be uniform for all regions of the United States.
        (f) Sales From Inventories.--In the case of each commodity
    specified in subsection (c) that is available for unrestricted use in
    the inventory of the Commodity Credit Corporation, the Secretary may
    sell the commodity at the market prices prevailing for that commodity
    at the time of sale, except that the sale price may not be less than
    110 percent of the minimum purchase price specified in subsection (c)
    for that commodity.
    SEC. 1502. DAIRY FORWARD PRICING PROGRAM.
        (a) Program Required.--The Secretary shall establish a program
    under which milk producers and cooperative associations of producers
    are authorized to voluntarily enter into forward price contracts with
    milk handlers.
        (b) Minimum Milk Price Requirements.--Payments made by milk
    handlers to milk producers and cooperative associations of producers,
    and prices received by milk producers and cooperative associations, in
    accordance with the terms of a forward price contract authorized by
    subsection (a), shall be treated as satisfying--
            (1) all uniform and minimum milk price requirements of
        subparagraphs (B) and (F) of paragraph (5) of section 8c of the
        Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with
        amendments by the Agricultural Marketing Agreement Act of 1937; and
            (2) the total payment requirement of subparagraph (C) of that
        paragraph.
        (c) Milk Covered by Program.--
            (1) Covered milk.--The program shall apply only with respect to
        the marketing of federally regulated milk that--
                (A) is not classified as Class I milk or otherwise intended
            for fluid use; and
                (B) is in the current of interstate or foreign commerce or
            directly burdens, obstructs, or affects interstate or foreign
            commerce in federally regulated milk.
            (2) Relation to class i milk.--To assist milk handlers in
        complying with paragraph (1)(A) without having to segregate or
        otherwise individually track the source and disposition of milk, a
        milk handler may allocate milk receipts from producers,
        cooperatives, and other sources that are not subject to a forward
        contract to satisfy the obligations of the handler with regard to
        Class I milk usage.
        (d) Voluntary Program.--
            (1) In general.--A milk handler may not require participation
        in a forward pricing contract as a condition of the handler
        receiving milk from a producer or cooperative association of
        producers.
            (2) Pricing.--A producer or cooperative association described
        in paragraph (1) may continue to have their milk priced in
        accordance with the minimum payment provisions of the Federal milk
        marketing order.
            (3) Complaints.--
                (A) In general.--The Secretary shall investigate complaints
            made by producers or cooperative associations of coercion by
            handlers to enter into forward contracts.
                (B) Action.--If the Secretary finds evidence of coercion,
            the Secretary shall take appropriate action.
        (e) Duration.--
            (1) New contracts.--No forward price contract may be entered
        into under the program established under this section after
        September 30, 2012.
            (2) Application.--No forward contract entered into under the
        program may extend beyond September 30, 2015.
    SEC. 1503. DAIRY EXPORT INCENTIVE PROGRAM.
        (a) Extension.--Section 153(a) of the Food Security Act of 1985 (15
    U.S.C. 713a-14(a)) is amended by striking ``2007'' and inserting
    ``2012''.
        (b) Compliance With Trade Agreements.--Section 153 of the Food
    Security Act of 1985 (15 U.S.C. 713a-14) is amended--
            (1) in subsection (c), by striking paragraph (3) and inserting
        the following:
            ``(3) the maximum volume of dairy product exports allowable
        consistent with the obligations of the United States under the
        Uruguay Round Agreements approved under section 101 of the Uruguay
        Round Agreements Act (19 U.S.C. 3511) is exported under the program
        each year (minus the volume sold under section 1163 of this Act
        during that year), except to the extent that the export of such a
        volume under the program would, in the judgment of the Secretary,
        exceed the limitations on the value permitted under subsection (f);
        and''; and.
            (2) in subsection (f), by striking paragraph (1) and inserting
        the following:
            ``(1) Funds and commodities.--Except as provided in paragraph
        (2), the Commodity Credit Corporation shall in each year use money
        and commodities for the program under this section in the maximum
        amount consistent with the obligations of the United States under
        the Uruguay Round Agreements approved under section 101 of the
        Uruguay Round Agreements Act (19 U.S.C. 3511), minus the amount
        expended under section 1163 of this Act during that year.''.
    SEC. 1504. REVISION OF FEDERAL MARKETING ORDER AMENDMENT PROCEDURES.
        Section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c),
    reenacted with amendments by the Agricultural Marketing Agreement Act
    of 1937, is amended by striking subsection (17) and inserting the
    following:
            ``(17) Provisions applicable to amendments.--
                ``(A) Applicability to amendments.--The provisions of this
            section and section 8d applicable to orders shall be applicable
            to amendments to orders.
                ``(B) Supplemental rules of practice.--
                    ``(i) 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 120 days after the date of the issuance of
                    the notice;
                        ``(II)(aa) issue a request for additional
                    information to be used by the Secretary in making a
                    determination regarding the proposal; and
                        ``(bb) if the additional information is not
                    provided to the Secretary within the timeframe
                    requested by the Secretary, issue a denial of the
                    request; or
                        ``(III) issue a denial of the request.

                    ``(ii) Requirement.--A post-hearing brief may be filed
                under this paragraph not later than 60 days after the date
                of an amendment hearing regarding a milk marketing order.
                    ``(iii) Recommended decisions.--A recommended decision
                on a proposed amendment to an order shall be issued not
                later than 90 days after the deadline for the submission of
                post-hearing briefs.
                    ``(iv) Final decisions.--A final decision on a proposed
                amendment to an order shall be issued not later than 60
                days after the deadline for submission of comments and
                exceptions to the recommended decision issued under clause
                (iii).
                ``(D) Industry assessments.--If the Secretary determines it
            is necessary to improve or expedite rulemaking under this
            subsection, the Secretary may impose an assessment on the
            affected industry to supplement appropriated funds for the
            procurement of service providers, such as court reporters.
                ``(E) Use of informal rulemaking.--The Secretary may use
            rulemaking under section 553 of title 5, United States Code, to
            amend orders, other than provisions of orders that directly
            affect milk prices.
                ``(F) Avoiding duplication.--The Secretary shall not be
            required to hold a hearing on any amendment proposed to be made
            to a milk marketing order in response to an application for a
            hearing on the proposed amendment if--
                    ``(i) the application requesting the hearing is
                received by the Secretary not later than 90 days after the
                date on which the Secretary has announced the decision on a
                previously proposed amendment to that order; and
                    ``(ii) the 2 proposed amendments are essentially the
                same, as determined by the Secretary.
                ``(G) Monthly feed and fuel costs for make allowances.--As
            part of any hearing to adjust make allowances under marketing
            orders commencing prior to September 30, 2012, the Secretary
            shall--
                    ``(i) determine the average monthly prices of feed and
                fuel incurred by dairy producers in the relevant marketing
                area;
                    ``(ii) consider the most recent monthly feed and fuel
                price data available; and
                    ``(iii) consider those prices in determining whether or
                not to adjust make allowances.''.
    SEC. 1505. DAIRY INDEMNITY PROGRAM.
        Section 3 of Public Law 90-484 (7 U.S.C. 450l) is amended by
    striking ``2007'' and inserting ``2012''.
    SEC. 1506. MILK INCOME LOSS CONTRACT PROGRAM.
        (a) Definitions.--In this section:
            (1) Class i milk.--The term ``Class I milk'' means milk
        (including milk components) classified as Class I milk under a
        Federal milk marketing order.
            (2) Eligible production.--The term ``eligible production''
        means milk produced by a producer in a participating State.
            (3) Federal milk marketing order.--The term ``Federal milk
        marketing order'' means an order issued under section 8c of the
        Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with
        amendments by the Agricultural Marketing Agreement Act of 1937.
            (4) Participating state.--The term ``participating State''
        means each State.
            (5) Producer.--The term ``producer'' means an individual or
        entity that directly or indirectly (as determined by the
        Secretary)--
                (A) shares in the risk of producing milk; and
                (B) makes contributions (including land, labor, management,
            equipment, or capital) to the dairy farming operation of the
            individual or entity that are at least commensurate with the
            share of the individual or entity of the proceeds of the
            operation.
        (b) Payments.--The Secretary shall offer to enter into contracts
    with producers on a dairy farm located in a participating State under
    which the producers receive payments on eligible production.
        (c) Amount.--Payments to a producer under this section shall be
    calculated by multiplying (as determined by the Secretary)--
            (1) the payment quantity for the producer during the applicable
        month established under subsection (e);
            (2) the amount equal to--
                (A) $16.94 per hundredweight, as adjusted under subsection
            (d); less
                (B) the Class I milk price per hundredweight in Boston
            under the applicable Federal milk marketing order; by
            (3)(A) for the period beginning October 1, 2007, and ending
        September 30, 2008, 34 percent;
            (B) for the period beginning October 1, 2008, and ending August
        31, 2012, 45 percent; and
            (C) for the period beginning September 1, 2012, and thereafter,
        34 percent.
        (d) Payment Rate Adjustment for Feed Prices.--
            (1) Initial adjustment authority.--During the period beginning
        on January 1, 2008, and ending on August 31, 2012, if the National
        Average Dairy Feed Ration Cost for a month during that period is
        greater than $7.35 per hundredweight, the amount specified in
        subsection (c)(2)(A) used to determine the payment rate for that
        month shall be increased by 45 percent of the percentage by which
        the National Average Dairy Feed Ration Cost exceeds $7.35 per
        hundredweight.
            (2) Subsequent adjustment authority.--For any month beginning
        on or after September 1, 2012, if the National Average Dairy Feed
        Ration Cost for the month is greater than $9.50 per hundredweight,
        the amount specified in subsection (c)(2)(A) used to determine the
        payment rate for that month shall be increased by 45 percent of the
        percentage by which the National Average Dairy Feed Ration Cost
        exceeds $9.50 per hundredweight.
            (3) National average dairy feed ration cost.--For each month,
        the Secretary shall calculate a National Average Dairy Feed Ration
        Cost per hundredweight using the same procedures (adjusted to a
        hundredweight basis) used to calculate the feed components of the
        estimated price of 16% Mixed Dairy Feed per pound noted on page 33
        of the USDA March 2008 Agricultural Prices publication (including
        the data and factors noted in footnote 4).
        (e) Payment Quantity.--
            (1) In general.--Subject to paragraph (2), the payment quantity
        for a producer during the applicable month under this section shall
        be equal to the quantity of eligible production marketed by the
        producer during the month.
            (2) Limitation.--
                (A) In general.--The payment quantity for all producers on
            a single dairy operation for which the producers receive
            payments under subsection (b) shall not exceed--
                    (i) for the period beginning October 1, 2007, and
                ending September 30, 2008, 2,400,000 pounds;
                    (ii) for the period beginning October 1, 2008, and
                ending August 31, 2012, 2,985,000 pounds for each fiscal
                year; and
                    (iii) effective beginning September 1, 2012, 2,400,000
                pounds per fiscal year.
                (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.
        (f) Payments.--A payment under a contract under this section shall
    be made on a monthly basis not later than 60 days after the last day of
    the month for which the payment is made.
        (g) Signup.--The Secretary shall offer to enter into contracts
    under this section during the period beginning on the date that is 90
    days after the date of enactment of this Act and ending on September
    30, 2012.
        (h) Duration of Contract.--
            (1) In general.--Except as provided in paragraph (2), any
        contract entered into by producers on a dairy farm under this
        section shall cover eligible production marketed by the producers
        on the dairy farm during the period starting with the first day of
        month the producers on the dairy farm enter into the contract and
        ending on September 30, 2012.
            (2) Violations.--If a producer violates the contract, the
        Secretary may--
                (A) terminate the contract and allow the producer to retain
            any payments received under the contract; or
                (B) allow the contract to remain in effect and require the
            producer to repay a portion of the payments received under the
            contract based on the severity of the violation.
    SEC. 1507. DAIRY PROMOTION AND RESEARCH PROGRAM.
        (a) Extension of Dairy Promotion and Research Authority.--Section
    113(e)(2) of the Dairy Production Stabilization Act of 1983 (7 U.S.C.
    4504(e)(2)) is amended by striking ``2007'' and inserting ``2012''.
        (b) Definition of United States for Promotion Program.--Section 111
    of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4502) is
    amended--
            (1) by striking subsection (l) and inserting the following:
        ``(l) the term `United States', when used in a geographical sense,
    means all of the States, the District of Columbia, and the Commonwealth
    of Puerto Rico;''; and
            (2) in subsection (m), by striking ``(as defined in subsection
        (l))''.
        (c) Definition of United States for Research Program.--Section 130
    of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4531)) is
    amended by striking paragraph (12) and inserting the following:
            ``(12) the term `United States', when used in a geographical
        sense, means all of the States, the District of Columbia, and the
        Commonwealth of Puerto Rico.''.
        (d) Assessment Rate for Imported Dairy Products.--Section 113(g) of
    the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(g)) is
    amended by striking paragraph (3) and inserting the following:
            ``(3) Rate.--
                ``(A) In general.--The rate of assessment for milk produced
            in the United States prescribed by the order shall be 15 cents
            per hundredweight of milk for commercial use or the equivalent
            thereof, as determined by the Secretary.
                ``(B) Imported dairy products.--The rate of assessment for
            imported dairy products prescribed by the order shall be 7.5
            cents per hundredweight of milk for commercial use or the
            equivalent thereof, as determined by the Secretary.''.
        (e) Time and Method of Importer Payments.--Section 113(g)(6) of the
    Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(g)(6)) is
    amended--
            (1) by striking subparagraph (B); and
            (2) by redesignating subparagraph (C) as subparagraph (B).
        (f) Refund of Assessments on Certain Imported Dairy Products.--
    Section 113(g) of the Dairy Production Stabilization Act of 1983 (7
    U.S.C. 4504(g)) is amended by adding at the end the following:
            ``(7) Refund of assessments on certain imported products.--
                ``(A) In general.--An importer shall be entitled to a
            refund of any assessment paid under this subsection on imported
            dairy products imported under a contract entered into prior to
            the date of enactment of the Food, Conservation, and Energy Act
            of 2008.
                ``(B) Expiration.--Refunds under subparagraph (A) shall
            expire 1 year after the date of enactment of the Food,
            Conservation, and Energy Act of 2008.''.
    SEC. 1508. REPORT ON DEPARTMENT OF AGRICULTURE REPORTING PROCEDURES FOR
    NONFAT DRY MILK.
        Not later than 90 days after the date of enactment of this Act, the
    Secretary shall submit to the Committee on Agriculture of the House of
    Representatives and the Committee on Agriculture, Nutrition, and
    Forestry of the Senate a report regarding Department of Agriculture
    reporting procedures for nonfat dry milk and the impact of the
    procedures on Federal milk marketing order minimum prices during the
    period beginning on July 1, 2006, and ending on the date of enactment
    of this Act.
    SEC. 1509. FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.
        (a) Establishment.--Subject to the availability of appropriations
    to carry out this section, the Secretary shall establish a commission
    to be known as the ``Federal Milk Marketing Order Review Commission''
    (referred to in this section as the ``commission''), which shall
    conduct a comprehensive review and evaluation of--
            (1) the Federal milk marketing order system in effect on the
        date of establishment of the commission; and
            (2) non-Federal milk marketing order systems.
        (b) Elements of Review and Evaluation.--As part of the review and
    evaluation under subsection (a), the commission shall consider
    legislative and regulatory options for--
            (1) ensuring that the competitiveness of dairy products with
        other competing products in the marketplace is preserved and
        enhanced;
            (2) enhancing the competitiveness of American dairy producers
        in world markets;
            (3) ensuring the competitiveness and transparency in dairy
        pricing;
            (4) streamlining and expediting the process by which amendments
        to Federal milk market orders are adopted;
            (5) simplifying the Federal milk marketing order system;
            (6) evaluating whether the Federal milk marketing order system
        serves the interests of dairy producers, consumers, and dairy
        processors; and
            (7) evaluating the nutritional composition of milk, including
        the potential benefits and costs of adjusting the milk content
        standards.
        (c) Membership.--
            (1) Composition.--The commission shall consist of 14 members.
            (2) Members.--As soon as practicable after the date on which
        funds are first made available to carry out this section, the
        Secretary shall appoint members to the commission according to the
        following requirements:
                (A) At least 1 member shall represent a national consumer
            organization.
                (B) At least 4 members shall represent land-grant
            universities or NLGCA Institutions (as defined in section 1404
            of the National Agricultural Research, Extension, and Teaching
            Policy Act of 1977 (7 U.S.C. 3103)) with accredited dairy
            economic programs, with at least 2 of those members being
            experts in the field of economics.
                (C) At least 1 member shall represent the food and beverage
            retail sector.
                (D) 4 dairy producers and 4 dairy processors, appointed so
            as to balance geographical distribution of milk production and
            dairy processing, reflect all segments of dairy processing, and
            represent all regions of the United States equitably, including
            States that operate outside of a Federal milk marketing order.
            (3) Chair.--The commission shall elect 1 of the appointed
        members of the commission to serve as chairperson for the duration
        of the proceedings of the commission.
            (4) Vacancy.--Any vacancy occurring before the termination of
        the commission shall be filled in the same manner as the original
        appointment.
            (5) Compensation.--Members of the commission shall serve
        without compensation, but shall be reimbursed by the Secretary from
        existing budget authority for necessary and reasonable expenses
        incurred in the performance of the duties of the commission.
        (d) Report.--
            (1) In general.--Not later than 2 years after the date of the
        first meeting of the commission, the commission shall submit to
        Congress and the Secretary a report describing the results of the
        review and evaluation conducted under this section, including such
        recommendations regarding the legislative and regulatory options
        considered under subsection (b) as the commission considers to be
        appropriate.
            (2) Opinions.--The report findings shall reflect, to the
        maximum extent practicable, a consensus opinion of the commission
        members, but the report may include majority and minority findings
        regarding those matters for which consensus was not reached.
        (e) Advisory Nature.--The commission is wholly advisory in nature,
    and the recommendations of the commission are nonbinding.
        (f) No Effect on Existing Programs.--The Secretary shall not allow
    the existence of the commission to impede, delay, or otherwise affect
    any decisionmaking process of the Department of Agriculture, including
    any rulemaking procedures planned, proposed, or near completion.
        (g) Administrative Assistance.--The Secretary shall provide
    administrative support to the commission, and expend to carry out this
    section such funds as necessary from budget authority available to the
    Secretary.
        (h) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as are necessary to carry out this section.
        (i) Termination.--The commission shall terminate effective on the
    date of the submission of the report under subsection (d).
    SEC. 1510. MANDATORY REPORTING OF DAIRY COMMODITIES.
        (a) Electronic Reporting.--Section 273 of the Agricultural
    Marketing Act of 1946 (7 U.S.C. 1637b) is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following:
        ``(d) Electronic Reporting.--
            ``(1) In general.--Subject to the availability of funds under
        paragraph (3), the Secretary shall establish an electronic
        reporting system to carry out this section.
            ``(2) Frequency of reports.--After the establishment of the
        electronic reporting system in accordance with paragraph (1), the
        Secretary shall increase the frequency of the reports required
        under this section.
            ``(3) Authorization of appropriations.--There are authorized to
        be appropriated such sums as are necessary to carry out this
        subsection.''.
        (b) Quarterly Audits.--Section 273(c) of the Agricultural Marketing
    Act of 1946 (7 U.S.C. 1637b(c)) is amended by striking paragraph (3)
    and inserting the following:
            ``(3) Verification.--
                ``(A) In general.--The Secretary shall take such actions as
            the Secretary considers necessary to verify the accuracy of the
            information submitted or reported under this subtitle.
                ``(B) Quarterly audits.--The Secretary shall quarterly
            conduct an audit of information submitted or reported under
            this subtitle and compare such information with other related
            dairy market statistics.''.

                           Subtitle F--Administration

    SEC. 1601. ADMINISTRATION GENERALLY.
        (a) Use of Commodity Credit Corporation.--Except as otherwise
    provided in this title, the Secretary shall use the funds, facilities,
    and authorities of the Commodity Credit Corporation to carry out this
    title.
        (b) Determinations by Secretary.--A determination made by the
    Secretary under this title shall be final and conclusive.
        (c) Regulations.--
            (1) In general.--Except as otherwise provided in this
        subsection, not later than 90 days after the date of enactment of
        this Act, the Secretary and the Commodity Credit Corporation, as
        appropriate, shall promulgate such regulations as are necessary to
        implement this title and the amendments made by this title.
            (2) Procedure.--The promulgation of the regulations and
        administration of this title and the amendments made by this title
        shall be made without regard to--
                (A) chapter 35 of title 44, United States Code (commonly
            known as the ``Paperwork Reduction Act'');
                (B) the Statement of Policy of the Secretary of Agriculture
            effective July 24, 1971 (36 Fed. Reg. 13804), relating to
            notices of proposed rulemaking and public participation in
            rulemaking; and
                (C) the notice and comment provisions of section 553 of
            title 5, United States Code.
            (3) Congressional review of agency rulemaking.--In carrying out
        this subsection, the Secretary shall use the authority provided
        under section 808 of title 5, United States Code.
            (4) Interim regulations.--Notwithstanding paragraphs (1) and
        (2), the Secretary shall implement the amendments made by sections
        1603 and 1604 for the 2009 crop, fiscal, or program year, as
        appropriate, through the promulgation of an interim rule.
        (d) Adjustment Authority Related to Trade Agreements Compliance.--
            (1) Required determination; adjustment.--If the Secretary
        determines that expenditures under this title that are subject to
        the total allowable domestic support levels under the Uruguay Round
        Agreements (as defined in section 2 of the Uruguay Round Agreements
        Act (19 U.S.C. 3501)) will exceed such allowable levels for any
        applicable reporting period, the Secretary shall, to the maximum
        extent practicable, make adjustments in the amount of such
        expenditures during that period to ensure that such expenditures do
        not exceed such allowable levels.
            (2) Congressional notification.--Before making any adjustment
        under paragraph (1), the Secretary shall submit to the Committee on
        Agriculture of the House of Representatives or the Committee on
        Agriculture, Nutrition, and Forestry of the Senate a report
        describing the determination made under that paragraph and the
        extent of the adjustment to be made.
        (e) Treatment of Advance Payment Option.--Section 1601(d) of the
    Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7991(d)) is
    amended--
            (1) in paragraph (1), by striking ``and'' at the end;
            (2) in paragraph (2), by striking the period at the end and
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(3) the advance payment of direct payments and counter-
        cyclical payments under title I of the Food, Conservation, and
        Energy Act of 2008.''.
    SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.
        (a) Agricultural Adjustment Act of 1938.--The following provisions
    of the Agricultural Adjustment Act of 1938 shall not be applicable to
    the 2008 through 2012 crops of covered commodities, peanuts, and sugar
    and shall not be applicable to milk during the period beginning on the
    date of enactment of this Act through December 31, 2012:
            (1) Parts II through V of subtitle B of title III (7 U.S.C.
        1326 et seq.).
            (2) In the case of upland cotton, section 377 (7 U.S.C. 1377).
            (3) Subtitle D of title III (7 U.S.C. 1379a et seq.).
            (4) Title IV (7 U.S.C. 1401 et seq.).
        (b) Agricultural Act of 1949.--The following provisions of the
    Agricultural Act of 1949 shall not be applicable to the 2008 through
    2012 crops of covered commodities, peanuts, and sugar and shall not be
    applicable to milk during the period beginning on the date of enactment
    of this Act and through December 31, 2012:
            (1) Section 101 (7 U.S.C. 1441).
            (2) Section 103(a) (7 U.S.C. 1444(a)).
            (3) Section 105 (7 U.S.C. 1444b).
            (4) Section 107 (7 U.S.C. 1445a).
            (5) Section 110 (7 U.S.C. 1445e).
            (6) Section 112 (7 U.S.C. 1445g).
            (7) Section 115 (7 U.S.C. 1445k).
            (8) Section 201 (7 U.S.C. 1446).
            (9) Title III (7 U.S.C. 1447 et seq.).
            (10) Title IV (7 U.S.C. 1421 et seq.), other than sections 404,
        412, and 416 (7 U.S.C. 1424, 1429, and 1431).
            (11) Title V (7 U.S.C. 1461 et seq.).
            (12) Title VI (7 U.S.C. 1471 et seq.).
        (c) Suspension of Certain Quota Provisions.--The joint resolution
    entitled ``A joint resolution relating to corn and wheat marketing
    quotas under the Agricultural Adjustment Act of 1938, as amended'',
    approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable
    to the crops of wheat planted for harvest in the calendar years 2008
    through 2012.
    SEC. 1603. PAYMENT LIMITATIONS.
        (a) Extension of Limitations.--Sections 1001 and 1001C(a) of the
    Food Security Act of 1985 (7 U.S.C. 1308, 1308-3(a)) are amended by
    striking ``Farm Security and Rural Investment Act of 2002'' each place
    it appears and inserting ``Food, Conservation, and Energy Act of
    2008''.
        (b) Revision of Limitations.--
            (1) Definitions.--Section 1001(a) of the Food Security Act of
        1985 (7 U.S.C. 1308(a)) is amended--
                (A) in the matter preceding paragraph (1), by inserting
            ``through section 1001F''after ``section'';
                (B) by striking paragraph (2) and redesignating paragraph
            (3) as paragraph (5); and
                (C) by inserting after paragraph (1) the following:
            ``(2) Family member.--The term `family member' means a person
        to whom a member in the farming operation is related as lineal
        ancestor, lineal descendant, sibling, spouse, or otherwise by
        marriage.
            ``(3) Legal entity.--The term `legal entity' means an entity
        that is created under Federal or State law and that--
                ``(A) owns land or an agricultural commodity; or
                ``(B) produces an agricultural commodity.
            ``(4) Person.--The term `person' means a natural person, and
        does not include a legal entity.''.
            (2) Limitation on direct payments and counter-cyclical
        payments.--Section 1001 of the Food Security Act of 1985 (7 U.S.C.
        1308) is amended by striking subsections (b), (c), and (d) and
        inserting the following:
        ``(b) Limitation on Direct Payments, Counter-Cyclical Payments, and
    ACRE Payments for Covered Commodities (other Than Peanuts).--
            ``(1) Direct payments.--The total amount of direct payments
        received, directly or indirectly, by a person or legal entity
        (except a joint venture or a general partnership) for any crop year
        under subtitle A of title I of the Food, Conservation, and Energy
        Act of 2008 for 1 or more covered commodities (except for peanuts)
        may not exceed--
                ``(A) in the case of a person or legal entity that does not
            participate in the average crop revenue election program under
            section 1105 of that Act, $40,000; or
                ``(B) in the case of a person or legal entity that
            participates in the average crop revenue election program under
            section 1105 of that Act, an amount equal to--
                    ``(i) the payment limit specified in subparagraph (A);
                less
                    ``(ii) the amount of the reduction in direct payments
                under section 1105(a)(1) of that Act.
            ``(2) Counter-cyclical payments.--In the case of a person or
        legal entity (except a joint venture or a general partnership) that
        does not participate in the average crop revenue election program
        under section 1105 of the Food, Conservation, and Energy Act of
        2008, the total amount of counter-cyclical payments received,
        directly or indirectly, by the person or legal entity for any crop
        year under subtitle A of title I of that Act for 1 or more covered
        commodities (except for peanuts) may not exceed $65,000.
            ``(3) ACRE and counter-cyclical payments.--In the case of a
        person or legal entity (except a joint venture or a general
        partnership) that participates in the average crop revenue election
        program under section 1105 of the Food, Conservation, and Energy
        Act of 2008, the total amount of average crop revenue election
        payments and counter-cyclical payments received, directly or
        indirectly, by the person or legal entity for any crop year for 1
        or more covered commodities (except for peanuts) may not exceed the
        sum of--
                ``(A) $65,000; and
                ``(B) the amount by which the direct payment limitation is
            reduced under paragraph (1)(B).
        ``(c) Limitation on Direct Payments, Counter-Cyclical Payments, and
    ACRE Payments for Peanuts.--
            ``(1) Direct payments.--The total amount of direct payments
        received, directly or indirectly, by a person or legal entity
        (except a joint venture or a general partnership) for any crop year
        under subtitle C of title I of the Food, Conservation, and Energy
        Act of 2008 for peanuts may not exceed--
                ``(A) in the case of a person or legal entity that does not
            participate in the average crop revenue election program under
            section 1105 of that Act, $40,000; or
                ``(B) in the case of a person or legal entity that
            participates in the average crop revenue election program under
            section 1105 of that Act, an amount equal to--
                    ``(i) the payment limit specified in subparagraph (A);
                less
                    ``(ii) the amount of the reduction in direct payments
                under section 1105(a)(1) of that Act.
            ``(2) Counter-cyclical payments.--In the case of a person or
        legal entity (except a joint venture or a general partnership) that
        does not participate in the average crop revenue election program
        under section 1105 of the Food, Conservation, and Energy Act of
        2008, the total amount of counter-cyclical payments received,
        directly or indirectly, by the person or legal entity for any crop
        year under subtitle C of title I of that Act for peanuts may not
        exceed $65,000.
            ``(3) ACRE and counter-cyclical payments.--In the case of a
        person or legal entity (except a joint venture or a general
        partnership) that participates in the average crop revenue election
        program under section 1105 of the Food, Conservation, and Energy
        Act of 2008, the total amount of average crop revenue election
        payments received, directly or indirectly, by the person or legal
        entity for any crop year for peanuts may not exceed the sum of--
                ``(A) $65,000; and
                ``(B) the amount by which the direct payment limitation is
            reduced under paragraph (1)(B).
        ``(d) Limitation on Applicability.--Nothing in this section
    authorizes any limitation on any benefit associated with the marketing
    assistance loan program or the loan deficiency payment program under
    title I of the Food, Conservation, and Energy Act of 2008.''.
            (3) Direct attribution.--Section 1001 of the Food Security Act
        of 1985 (7 U.S.C. 1308) is amended--
                (A) by striking subsections (e) and (f) and redesignating
            subsection (g) as subsection (h); and
                (B) by inserting after subsection (d) the following:
        ``(e) Attribution of Payments.--
            ``(1) In general.--In implementing subsections (b) and (c) and
        a program described in paragraphs (1)(C) and (2)(B) of section
        1001D(b), the Secretary shall issue such regulations as are
        necessary to ensure that the total amount of payments are
        attributed to a person by taking into account the direct and
        indirect ownership interests of the person in a legal entity that
        is eligible to receive the payments.
            ``(2) Payments to a person.--Each payment made directly to a
        person shall be combined with the pro rata interest of the person
        in payments received by a legal entity in which the person has a
        direct or indirect ownership interest unless the payments of the
        legal entity have been reduced by the pro rata share of the person.
            ``(3) Payments to a legal entity.--
                ``(A) 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 person or legal entity that has otherwise
                exceeded the applicable maximum payment limitation.
            ``(4) 4 levels of attribution for embedded legal entities.--
                ``(A) In general.--Attribution of payments made to legal
            entities shall be traced through 4 levels of ownership in legal
            entities.
                ``(B) First level.--Any payments made to a legal entity (a
            first-tier legal entity) that is owned in whole or in part by a
            person shall be attributed to the person in an amount that
            represents the direct ownership in the first-tier legal entity
            by the person.
                ``(C) Second level.--
                    ``(i) In general.--Any payments made to a first-tier
                legal entity that is owned (in whole or in part) by another
                legal entity (a second-tier legal entity) shall be
                attributed to the second-tier legal entity in proportion to
                the ownership of the second-tier legal entity in the first-
                tier legal entity.
                    ``(ii) Ownership by a person.--If the second-tier legal
                entity is owned (in whole or in part) by a person, the
                amount of the payment made to the first-tier legal entity
                shall be attributed to the person in the amount that
                represents the indirect ownership in the first-tier legal
                entity by the person.
                ``(D) Third and fourth levels.--
                    ``(i) In general.--Except as provided in clause (ii),
                the Secretary shall attribute payments at the third and
                fourth tiers of ownership in the same manner as specified
                in subparagraph (C).
                    ``(ii) Fourth-tier ownership.--If the fourth-tier of
                ownership is that of a fourth-tier legal entity and not
                that of a person, the Secretary shall reduce the amount of
                the payment to be made to the first-tier legal entity in
                the amount that represents the indirect ownership in the
                first-tier legal entity by the fourth-tier legal entity.
        ``(f) Special Rules.--
            ``(1) Minor children.--
                ``(A) In general.--Except as provided in subparagraph (B),
            payments received by a child under the age of 18 shall be
            attributed to the parents of the child.
                ``(B) Regulations.--The Secretary shall issue regulations
            specifying the conditions under which payments received by a
            child under the age of 18 will not be attributed to the parents
            of the child.
            ``(2) 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) contingent on the death of the grantor or
                    income beneficiary.

                ``(C) Revocable trust.--For the purposes of this section
            through section 1001F, a revocable trust shall be considered to
            be the same person as the grantor of the trust.
            ``(4) Cash rent tenants.--
                ``(A) Definition.--In this paragraph, the term `cash rent
            tenant' means a person or legal entity that rents land--
                    ``(i) for cash; or
                    ``(ii) for a crop share guaranteed as to the amount of
                the commodity to be paid in rent.
                ``(B) Restriction.--A cash rent tenant who makes a
            significant contribution of active personal management, but not
            of personal labor, with respect to a farming operation shall be
            eligible to receive a payment described in subsection (b) or
            (c) only if the tenant makes a significant contribution of
            equipment to the farming operation.
            ``(5) Federal agencies.--
                ``(A) In general.--Notwithstanding subsection (d), a
            Federal agency shall not be eligible to receive any payment,
            benefit, or loan under title I of the Food, Conservation, and
            Energy Act of 2008 or title XII of this Act.
                ``(B) Land rental.--A lessee of land owned by a Federal
            agency may receive a payment described in subsection (b), (c),
            or (d) if the lessee otherwise meets all applicable criteria.
            ``(6) State and local governments.--
                ``(A) In general.--Notwithstanding subsection (d), except
            as provided in subsection (g), a State or local government, or
            political subdivision or agency of the government, shall not be
            eligible to receive any payment, benefit, or loan under title I
            of the Food, Conservation, and Energy Act of 2008 or title XII
            of this Act.
                ``(B) Tenants.--A lessee of land owned by a State or local
            government, or political subdivision or agency of the
            government, may receive payments described in subsections (b),
            (c), and (d) if the lessee otherwise meets all applicable
            criteria.
            ``(7) Changes in farming operations.--
                ``(A) In general.--In the administration of this section
            through section 1001F, the Secretary may not approve any change
            in a farming operation that otherwise will increase the number
            of persons to which the limitations under this section are
            applied unless the Secretary determines that the change is bona
            fide and substantive.
                ``(B) Family members.--The addition of a family member to a
            farming operation under the criteria set out in section 1001A
            shall be considered a bona fide and substantive change in the
            farming operation.
            ``(8) Death of owner.--
                ``(A) In general.--If any ownership interest in land or a
            commodity is transferred as the result of the death of a
            program participant, the new owner of the land or commodity
            may, if the person is otherwise eligible to participate in the
            applicable program, succeed to the contract of the prior owner
            and receive payments subject to this section without regard to
            the amount of payments received by the new owner.
                ``(B) Limitations on prior owner.--Payments made under this
            paragraph shall not exceed the amount to which the previous
            owner was entitled to receive under the terms of the contract
            at the time of the death of the prior owner.
        ``(g) Public Schools.--
            ``(1) In general.--Notwithstanding subsection (f)(6)(A), a
        State or local government, or political subdivision or agency of
        the government, shall be eligible, subject to the limitation in
        paragraph (2), to receive a payment described in subsection (b) or
        (c) for land owned by the State or local government, or political
        subdivision or agency of the government, that is used to maintain a
        public school.
            ``(2) Limitation.--
                ``(A) In general.--For each State, the total amount of
            payments described in subsections (b) and (c) that are received
            collectively by the State and local government and all
            political subdivisions or agencies of those governments shall
            not exceed $500,000.
                ``(B) Exception.--The limitation in subparagraph (A) shall
            not apply to States with a population of less than
            1,500,000.''.
        (c) Repeal of 3-Entity Rule.--Section 1001A of the Food Security
    Act of 1985 (7 U.S.C. 1308-1) is amended--
            (1) in the section heading, by striking ``prevention of
        creation of entities to qualify as separate persons'' and inserting
        ``notification of interests''; and
            (2) by striking subsection (a) and inserting the following:
        ``(a) Notification of Interests.--To facilitate administration of
    section 1001 and this section, each person or legal entity receiving
    payments described in subsections (b) and (c) of section 1001 as a
    separate person or legal entity shall separately provide to the
    Secretary, at such times and in such manner as prescribed by the
    Secretary--
            ``(1) the name and social security number of each person, or
        the name and taxpayer identification number of each legal entity,
        that holds or acquires an ownership interest in the separate person
        or legal entity; and
            ``(2) the name and taxpayer identification number of each legal
        entity in which the person or legal entity holds an ownership
        interest.''.
        (d) Amendment for Consistency.--Section 1001A of the Food Security
    Act of 1985 (7 U.S.C. 1308-1) is amended by striking subsection (b) and
    inserting the following:
        ``(b) Actively Engaged.--
            ``(1) In general.--To be eligible to receive a payment
        described in subsection (b) or (c) of section 1001, a person or
        legal entity shall be actively engaged in farming with respect to a
        farming operation as provided in this subsection or subsection (c).
            ``(2) Classes actively engaged.--Except as provided in
        subsections (c) and (d)--
                ``(A) a person (including a person participating in a
            farming operation as a partner in a general partnership, a
            participant in a joint venture, a grantor of a revocable trust,
            or a participant in a similar entity, as determined by the
            Secretary) shall be considered to be actively engaged in
            farming with respect to a farming operation if--
                    ``(i) the person makes a significant contribution
                (based on the total value of the farming operation) to the
                farming operation of--

                        ``(I) capital, equipment, or land; and
                        ``(II) personal labor or active personal
                    management;

                    ``(ii) the person's share of the profits or losses from
                the farming operation is commensurate with the
                contributions of the person to the farming operation; and
                    ``(iii) the contributions of the person are at risk;
                ``(B) a legal entity that is a corporation, joint stock
            company, association, limited partnership, charitable
            organization, or other similar entity determined by the
            Secretary (including any such legal entity participating in the
            farming operation as a partner in a general partnership, a
            participant in a joint venture, a grantor of a revocable trust,
            or as a participant in a similar legal entity as determined by
            the Secretary) shall be considered as actively engaged in
            farming with respect to a farming operation if--
                    ``(i) the legal entity separately makes a significant
                contribution (based on the total value of the farming
                operation) of capital, equipment, or land;
                    ``(ii) the stockholders or members collectively make a
                significant contribution of personal labor or active
                personal management to the operation; and
                    ``(iii) the standards provided in clauses (ii) and
                (iii) of subparagraph (A), as applied to the legal entity,
                are met by the legal entity;
                ``(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, failed
    to disclose material information relevant to the administration of
    sections 1001 through 1001F, or committed other equally serious actions
    (as identified in regulations issued by the Secretary), the Secretary
    may for a period not to exceed 5 crop years deny the issuance of
    payments to the person or legal entity.
        ``(c) Pro Rata Denial.--
            ``(1) In general.--Payments otherwise owed to a person or legal
        entity described in subsections (a) or (b) shall be denied in a pro
        rata manner based on the ownership interest of the person or legal
        entity in a farm.
            ``(2) Cash rent tenant.--Payments otherwise payable to a person
        or legal entity shall be denied in a pro rata manner if the person
        or legal entity is a cash rent tenant on a farm owned or under the
        control of a person or legal entity with respect to which a
        determination has been made under subsection (a) or (b).
        ``(d) Joint and Several Liability.--Any legal entity (including
    partnerships and joint ventures) and any member of any legal entity
    determined to have knowingly participated in a scheme or device to
    evade, or that has the purpose of evading, sections 1001, 1001A, or
    1001C shall be jointly and severally liable for any amounts that are
    payable to the Secretary as the result of the scheme or device
    (including amounts necessary to recover those amounts).
        ``(e) Release.--The Secretary may partially or fully release from
    liability any person or legal entity who cooperates with the Secretary
    in enforcing sections 1001, 1001A, and 1001C, and this section.''.
        (f) Conforming Amendment to Apply Direct Attribution to NAP.--
            (1) In general.--Section 196(i) of the Federal Agriculture
        Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)) is amended--
                (A) by striking paragraphs (1) and (2) and inserting the
            following:
            ``(1) Definitions.--In this subsection, the terms `legal
        entity' and `person' have the meanings given those terms in section
        1001(a) of the Food Security Act of 1985 (7 U.S.C. 1308(a)).
            ``(2) Payment limitation.--The total amount of payments
        received, directly or indirectly, by a person or legal entity
        (excluding a joint venture or general partnership) for any crop
        year may not exceed $100,000.'';
                (B) by striking paragraph (4) and inserting the following:
            ``(4) Adjusted gross income limitation.--A person or legal
        entity that has an average adjusted gross income in excess of the
        average adjusted gross income limitation applicable under section
        1001D(b)(1)(A) of the Food Security Act of 1985 (7 U.S.C. 1308-
        3a(b)(1)(A)), or a successor provision, shall not be eligible to
        receive noninsured crop disaster assistance under this section.'';
        and
                (C) in paragraph (5)--
                    (i) by striking ``necessary to ensure'' and inserting
                ``necessary--
                ``(A) to ensure''; and
                    (ii) by striking ``this subsection.'' and inserting the
                following: ``this subsection; and
                ``(B) to ensure that payments under this section are
            attributed to a person or legal entity (excluding a joint
            venture or general partnership) in accordance with the terms
            and conditions of sections 1001 through 1001D of the Food
            Security Act of 1985 (7 U.S.C. 1308 et seq.), as determined by
            the Secretary.''.
            (2) Transition.--Section 196(i) of the Federal Agriculture
        Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)), as in effect
        on September 30, 2007, shall apply with respect to the 2007 and
        2008 crops of any eligible crop.
        (g) Conforming Amendments.--
            (1) Section 1009(e) of the Food Security Act of 1985 (7 U.S.C.
        1308a(e)) is amended in the second sentence by striking ``of
        $50,000''.
            (2) Section 609(b)(1) of the Emergency Livestock Feed
        Assistance Act of 1988 (7 U.S.C. 1471g(b)(1)) is amended by
        inserting ``(before the amendment made by section 1703(a) of the
        Food, Conservation, and Energy Act of 2008)'' after ``1985''.
            (3) Section 524(b)(3) of the Federal Crop Insurance Act (7
        U.S.C. 1524(b)(3)) is amended by inserting ``(before the amendment
        made by section 1703(a) of the Food, Conservation, and Energy Act
        of 2008)'' after ``1308(5)))''.
            (4) Section 10204(c)(1) of the Farm Security and Rural
        Investment Act of 2002 (7 U.S.C. 8204(c)(1)) is amended by
        inserting ``(before the amendment made by section 1703(a) of the
        Food, Conservation, and Energy Act of 2008)'' after ``1308)''.
            (5) Section 1271(c)(3)(A) of the Food, Agriculture,
        Conservation, and Trade Act of 1990 (16 U.S.C. 2106a(c)(3)(A)) is
        amended by inserting ``(before the amendment made by section
        1703(a) of the Food, Conservation, and Energy Act of 2008)'' after
        ``1308)''.
            (6) Section 291(2) of the Trade Act of 1974 (19 U.S.C. 2401(2))
        is amended by inserting ``(before the amendment made by section
        1703(a) of the Food, Conservation, and Energy Act of 2008)'' before
        the period at the end.
        (h) Transition.--Section 1001, 1001A, and 1001B of the Food
    Security Act of 1985 (7 U.S.C. 1308, 1308-1, 1308-2), as in effect on
    September 30, 2007, shall continue to apply with respect to the 2007
    and 2008 crops of any covered commodity or peanuts.
    SEC. 1604. ADJUSTED GROSS INCOME LIMITATION.
        (a) In General.--Section 1001D of the Food Security Act of 1985 (7
    U.S.C. 1308-3a(e)) is amended to read as follows:
    ``SEC. 1001D. ADJUSTED GROSS INCOME LIMITATION.
        ``(a) Definitions.--
            ``(1) In general.--In this section:
                ``(A) Average adjusted gross income.--The term `average
            adjusted gross income', with respect to a person or legal
            entity, means the average of the adjusted gross income or
            comparable measure of the person or legal entity over the 3
            taxable years preceding the most immediately preceding complete
            taxable year, as determined by the Secretary.
                ``(B) Average adjusted gross farm income.--The term
            `average adjusted gross farm income', with respect to a person
            or legal entity, means the average of the portion of adjusted
            gross income of the person or legal entity that is attributable
            to activities related to farming, ranching, or forestry for the
            3 taxable years described in subparagraph (A), as determined by
            the Secretary in accordance with subsection (c).
                ``(C) Average adjusted gross nonfarm income.--The term
            `average adjusted gross nonfarm income', with respect to a
            person or legal entity, means the difference between--
                    ``(i) the average adjusted gross income of the person
                or legal entity; and
                    ``(ii) the average adjusted gross farm income of the
                person or legal entity.
            ``(2) Special rules for certain persons and legal entities.--In
        the case of a legal entity that is not required to file a Federal
        income tax return or a person or legal entity that did not have
        taxable income in 1 or more of the taxable years used to determine
        the average under subparagraph (A) or (B) of paragraph (1), the
        Secretary shall provide, by regulation, a method for determining
        the average adjusted gross income, the average adjusted gross farm
        income, and the average adjusted gross nonfarm income of the person
        or legal entity for purposes of this section.
            ``(3) Allocation of income.--On the request of any person
        filing a joint tax return, the Secretary shall provide for the
        allocation of average adjusted gross income, average adjusted gross
        farm income, and average adjusted gross nonfarm income among the
        persons filing the return if--
                ``(A) the person provides a certified statement by a
            certified public accountant or attorney that specifies the
            method by which the average adjusted gross income, average
            adjusted gross farm income, and average adjusted gross nonfarm
            income would have been declared and reported had the persons
            filed 2 separate returns; and
                ``(B) the Secretary determines that the method described in
            the statement is consistent with the information supporting the
            filed joint tax return.
        ``(b) Limitations.--
            ``(1) Commodity programs.--
                ``(A) Nonfarm limitation.--Notwithstanding any other
            provision of law, a person or legal entity shall not be
            eligible to receive any benefit described in subparagraph (C)
            during a crop, fiscal, or program year, as appropriate, if the
            average adjusted gross nonfarm income of the person or legal
            entity exceeds $500,000.
                ``(B) Farm limitation.--Notwithstanding any other provision
            of law, a person or legal entity shall not be eligible to
            receive a direct payment under subtitle A or C of title I of
            the Food, Conservation, and Energy Act of 2008 during a crop
            year, if the average adjusted gross farm income of the person
            or legal entity exceeds $750,000.
                ``(C) Covered benefits.--Subparagraph (A) applies with
            respect to the following:
                    ``(i) A direct payment or counter-cyclical payment
                under subtitle A or C of title I of the Food, Conservation,
                and Energy Act of 2008 or an average crop revenue election
                payment under subtitle A of title I of that Act.
                    ``(ii) A marketing loan gain or loan deficiency payment
                under subtitle B or C of title I of the Food, Conservation,
                and Energy Act of 2008.
                    ``(iii) A payment or benefit under section 196 of the
                Federal Agriculture Improvement and Reform Act of 1996 (7
                U.S.C. 7333).
                    ``(iv) A payment or benefit under section 1506 of the
                Food, Conservation, and Energy Act of 2008.
                    ``(v) A payment or benefit under title IX of the Trade
                Act of 1974 or subtitle B of the Federal Crop Insurance
                Act.
            ``(2) Conservation programs.--
                ``(A) Limits.--
                    ``(i) In general.--Notwithstanding any other provision
                of law, except as provided in clause (ii), a person or
                legal entity shall not be eligible to receive any benefit
                described in subparagraph (B) during a crop, fiscal, or
                program year, as appropriate, if the average adjusted gross
                nonfarm income of the person or legal entity exceeds
                $1,000,000, unless not less than 66.66 percent of the
                average adjusted gross income of the person or legal entity
                is average adjusted gross farm income.
                    ``(ii) Exception.--The Secretary may waive the
                limitation established under clause (i) on a case-by-case
                basis if the Secretary determines that environmentally
                sensitive land of special significance would be protected.
                ``(B) Covered benefits.--Subparagraph (A) applies with
            respect to the following:
                    ``(i) A payment or benefit under title XII of this Act.
                    ``(ii) A payment or benefit under title II of the Farm
                Security and Rural Investment Act of 2002 (Public Law 107-
                171; 116 Stat. 223) or title II of the Food, Conservation,
                and Energy Act of 2008.
                    ``(iii) A payment or benefit under section 524(b) of
                the Federal Crop Insurance Act (7 U.S.C. 1524(b)).
        ``(c) Income Determination.--
            ``(1) In general.--In determining the average adjusted gross
        farm income of a person or legal entity, the Secretary shall
        include income or benefits derived from or related to--
                ``(A) the production of crops, including specialty crops
            (as defined in section 3 of the Specialty Crops Competitiveness
            Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465)) and
            unfinished raw forestry products;
                ``(B) the production of livestock (including cattle, elk,
            reindeer, bison, horses, deer, sheep, goats, swine, poultry,
            fish, and other aquacultural products used for food, honeybees,
            and other animals designated by the Secretary) and products
            produced by, or derived from, livestock;
                ``(C) the production of farm-based renewable energy (as
            defined in section 9001 of the Farm Security and Rural
            Investment Act of 2002 (7 U.S.C. 8101));
                ``(D) the sale, including the sale of easements and
            development rights, of farm, ranch, or forestry land, water or
            hunting rights, or environmental benefits;
                ``(E) the rental or lease of land or equipment used for
            farming, ranching, or forestry operations, including water or
            hunting rights;
                ``(F) the processing (including packing), storing
            (including shedding), and transporting of farm, ranch, and
            forestry commodities, including renewable energy;
                ``(G) the feeding, rearing, or finishing of livestock;
                ``(H) the sale of land that has been used for agriculture;
                ``(I) payments or other benefits received under any program
            authorized under title I of the Farm Security and Rural
            Investment Act of 2002 (7 U.S.C. 7901 et seq.) or title I of
            the Food, Conservation, and Energy Act of 2008;
                ``(J) payments or other benefits received under any program
            authorized under title XII of this Act, title II of the Farm
            Security and Rural Investment Act of 2002 (Public Law 107-171;
            116 Stat. 223), or title II of the Food, Conservation, and
            Energy Act of 2008;
                ``(K) payments or other benefits received under section 196
            of the Federal Agriculture Improvement and Reform Act of 1996
            (7 U.S.C. 7333);
                ``(L) payments or other benefits received under title IX of
            the Trade Act of 1974 or subtitle B of the Federal Crop
            Insurance Act;
                ``(M) risk management practices, including benefits
            received under a program authorized under the Federal Crop
            Insurance Act (7 U.S.C. 1501 et seq.) (including a catastrophic
            risk protection plan offered under section 508(b) of that Act
            (7 U.S.C. 1508(b))); and
                ``(N) any other activity related to farming, ranching, or
            forestry, as determined by the Secretary.
            ``(2) Income derived from farming, ranching, or forestry.--In
        determining the average adjusted gross farm income of a person or
        legal entity, in addition to the inclusions described in paragraph
        (1), the Secretary shall include any income reported on the
        Schedule F or other schedule used by the person or legal entity to
        report income from farming, ranching, or forestry operations to the
        Internal Revenue Service, to the extent such income is not already
        included under paragraph (1).
            ``(3) Special rule.--If not less than 66.66 percent of the
        average adjusted gross income of a person or legal entity is
        derived from farming, ranching, or forestry operations described in
        paragraphs (1) and (2), in determining the average adjusted gross
        farm income of the person or legal entity, the Secretary shall also
        include--
                ``(A) the sale of equipment to conduct farm, ranch, or
            forestry operations; and
                ``(B) the provision of production inputs and services to
            farmers, ranchers, foresters, and farm operations.
        ``(d) Enforcement.--
            ``(1) In general.--To comply with subsection (b), at least once
        every 3 years a person or legal entity shall provide to the
        Secretary--
                ``(A) a certification by a certified public accountant or
            another third party that is acceptable to the Secretary that
            the average adjusted gross income, average adjusted gross farm
            income, and average adjusted gross nonfarm income of the person
            or legal entity does not exceed the applicable limitation
            specified in that subsection; or
                ``(B) information and documentation regarding the average
            adjusted gross income, average adjusted gross farm income, and
            average adjusted gross nonfarm income of the person or legal
            entity through other procedures established by the Secretary.
            ``(2) Denial of program benefits.--If the Secretary determines
        that a person or legal entity has failed to comply with this
        section, the Secretary shall deny the issuance of applicable
        payments and benefits specified in paragraphs (1)(C) and (2)(B) of
        subsection (b) to the person or legal entity, under similar terms
        and conditions as described in section 1001B.
            ``(3) Audit.--The Secretary shall establish statistically valid
        procedures under which the Secretary shall conduct targeted audits
        of such persons or legal entities as the Secretary determines are
        most likely to exceed the limitations under subsection (b).
        ``(e) Commensurate Reduction.--In the case of a payment or benefit
    described in paragraphs (1)(C) and (2)(B) of subsection (b) made in a
    crop, program, or fiscal year, as appropriate, to an entity, general
    partnership, or joint venture, the amount of the payment or benefit
    shall be reduced by an amount that is commensurate with the direct and
    indirect ownership interest in the entity, general partnership, or
    joint venture of each person who has an average adjusted gross income,
    average adjusted gross farm income, or average adjusted gross nonfarm
    income in excess of the applicable limitation specified in subsection
    (b).
        ``(f) Effective Period.--This section shall apply only during the
    2009 through 2012 crop, program, or fiscal years, as appropriate.''.
        (b) Transition.--Section 1001D of the Food Security Act of 1985 (7
    U.S.C. 1308-3a), as in effect on September 30, 2007, shall apply with
    respect to the 2007 and 2008 crop, fiscal, or program year, as
    appropriate, for each program described in paragraphs (1)(C) and (2)(B)
    of subsection (b) of that section (as amended by subsection (a)).
    SEC. 1605. AVAILABILITY OF QUALITY INCENTIVE PAYMENTS FOR COVERED
    OILSEED PRODUCERS.
        (a) Incentive Payments Required.--Subject to subsection (b) and the
    availability of appropriations under subsection (h), the Secretary
    shall use funds made available under subsection (h) to provide quality
    incentive payments for the production of oilseeds with specialized
    traits that enhance human health, as determined by the Secretary.
        (b) Covered Oilseeds.--The Secretary shall make payments under this
    section only for the production of an oilseed variety that has, as
    determined by the Secretary--
            (1) been demonstrated to improve the health profile of the
        oilseed for use in human consumption by--
                (A) reducing or eliminating the need to partially
            hydrogenate the oil derived from the oilseed for use in human
            consumption; or
                (B) adopting new technology traits; and
            (2) 1 or more impediments to commercialization.
        (c) Request for Proposals.--
            (1) Issuance.--If funds are made available to carry out this
        section for a crop year, the Secretary shall issue a request for
        proposals for payments under this section.
            (2) Multiyear proposals.--A proponent may submit a multiyear
        proposal for payments under this section.
            (3) Content of proposals.--A proposal for payments under this
        section shall include a description of--
                (A) how use of the oilseed enhances human health;
                (B) the impediments to commercial use of the oilseed;
                (C) each oilseed variety described in subsection (b) and
            the value of the oilseed variety as a matter of public policy;
                (D) a range for the base price and premiums per bushel or
            hundredweight to be paid to producers;
                (E) a per bushel or hundredweight amount of incentive
            payments requested for each year under this section that does
            not exceed \1/3\ of the total premium offered for any year;
                (F) the period of time, not to exceed 4 years, during which
            incentive payments are to be provided to producers; and
                (G) the targeted total quantity of production and estimated
            acres needed to produce the targeted quantity for each year
            under this section.
        (d) Contracts for Production.--
            (1) In general.--The Secretary shall approve successful
        proposals submitted under subsection (c) on a timely basis.
            (2) Timing of payments.--The Secretary shall make payments to
        producers under this section after the Secretary receives
        documentation that the premium required under a contract has been
        paid to covered producers.
        (e) Administration.--
            (1) In general.--If funding provided for a crop year is not
        fully allocated under the initial request for proposals under
        subsection (c), the Secretary shall issue additional requests for
        proposals for subsequent crop years under this section.
            (2) Prorated payments.--If funding provided for a crop year is
        less than the amount otherwise approved by the Secretary or for
        which approval is sought, the Secretary shall prorate the payments
        or approvals in a manner determined by the Secretary so that the
        total payments do not exceed the funding level.
        (f) Proprietary Information.--The Secretary shall protect
    proprietary information provided to the Secretary for the purpose of
    administering this section.
        (g) Program Compliance and Penalties.--
            (1) Guarantee.--The proponent, if approved, shall be required
        to guarantee that the oilseed on which a payment is made by the
        Secretary under this section is used for human consumption as
        described in the proposal, as approved by the Secretary.
            (2) Noncompliance.--If oilseeds on which a payment is made by
        the Secretary under this section are not actually used for the
        purpose the payment is made, the proponent shall be required to pay
        to the Secretary an amount equal to, as determined by the
        Secretary--
                (A) in the case of an inadvertent failure, twice the amount
            of the payment made by the Secretary under this section to the
            producer of the oilseeds; and
                (B) in any other case, up to twice the full value of the
            oilseeds involved.
            (3) Documentation.--The Secretary may require such assurances
        and documentation as may be needed to enforce the guarantee.
            (4) Additional penalties.--
                (A) In general.--In addition to payments required under
            paragraph (2), the Secretary may impose penalties on additional
            persons that use oilseeds the use of which is restricted under
            this section for a purpose other than the intended use.
                (B) Amount.--The amount of a penalty under this paragraph
            shall--
                    (i) be in an amount determined appropriated by the
                Secretary; but
                    (ii) not to exceed twice the full value of the
                oilseeds.
        (h) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as are necessary to carry out this section for
    each of fiscal years 2009 through 2012.
    SEC. 1606. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.
        Section 164 of the Federal Agriculture Improvement and Reform Act
    of 1996 (7 U.S.C. 7284) is amended by striking ``and title I of the
    Farm Security and Rural Investment Act of 2002'' each place it appears
    and inserting ``title I of the Farm Security and Rural Investment Act
    of 2002, and title I of the Food, Conservation, and Energy Act of
    2008''.
    SEC. 1607. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY REGARDING
    LOANS.
        Section 166 of the Federal Agriculture Improvement and Reform Act
    of 1996 (7 U.S.C. 7286) is amended--
            (1) by striking ``and subtitle B and C of title I of the Farm
        Security and Rural Investment Act of 2002'' each place it appears
        and inserting ``, title I of the Farm Security and Rural Investment
        Act of 2002, and title I of the Food, Conservation, and Energy Act
        of 2008''; and
            (2) in subsection (c), by adding at the end the following:
            ``(3) Termination of authority.--The authority to carry out
        paragraph (1) terminates effective ending with the 2009 crop
        year.''.
    SEC. 1608. 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 this
    title.
        (b) Notice.--The producer making the assignment, or the assignee,
    shall provide the Secretary with notice, in such manner as the
    Secretary may require, of any assignment made under this section.
    SEC. 1609. TRACKING OF BENEFITS.
        As soon as practicable after the date of enactment of this Act, the
    Secretary may track the benefits provided, directly or indirectly, to
    individuals and entities under titles I and II and the amendments made
    by those titles.
    SEC. 1610. GOVERNMENT PUBLICATION OF COTTON PRICE FORECASTS.
        Section 15 of the Agricultural Marketing Act (12 U.S.C. 1141j) is
    amended--
            (1) by striking subsection (d); and
            (2) by redesignating subsections (e) through (g) as subsections
        (d) through (f), respectively.
    SEC. 1611. PREVENTION OF DECEASED INDIVIDUALS RECEIVING PAYMENTS UNDER
    FARM COMMODITY PROGRAMS.
        (a) Regulations.--Not later than 180 days after the date of
    enactment of this Act, the Secretary shall promulgate regulations
    that--
            (1) describe the circumstances under which, in order to allow
        for the settlement of estates and for related purposes, payments
        may be issued in the name of a deceased individual; and
            (2) preclude the issuance of payments to, and on behalf of,
        deceased individuals that were not eligible for the payments.
        (b) Coordination.--At least twice each year, the Secretary shall
    reconcile the social security numbers of all individuals who receive
    payments under this title, whether directly or indirectly, with the
    Social Security Administration to determine if the individuals are
    alive.
    SEC. 1612. HARD WHITE WHEAT DEVELOPMENT PROGRAM.
        (a) Definitions.--In this section:
            (1) Eligible hard white wheat seed.--The term ``eligible hard
        white wheat seed'' means hard white wheat seed that, as determined
        by the Secretary, is--
                (A) certified;
                (B) of a variety that is suitable for the State in which
            the seed will be planted;
                (C) rated at least superior with respect to quality; and
                (D) specifically approved under a seed establishment
            program established by the State Department of Agriculture and
            the State Wheat Commission of the 1 or more States in which the
            seed will be planted.
            (2) Program.--The term ``program'' means the hard white wheat
        development program established under subsection (b)(1).
            (3) Secretary.--The term ``Secretary'' means the Secretary of
        Agriculture, in consultation with the State Departments of
        Agriculture and the State Wheat Commissions of the States in
        regions in which hard white wheat is produced, as determined by the
        Secretary.
        (b) Establishment.--
            (1) In general.--Subject to the availability of appropriations,
        the Secretary shall establish a hard white wheat development
        program in accordance with paragraph (2) to promote the
        establishment of hard white wheat as a viable market class of wheat
        in the United States by encouraging production of at least
        240,000,000 bushels of hard white wheat by 2012.
            (2) Payments.--
                (A) In general.--Subject to subparagraphs (B) and (C) and
            subsection (c), if funds are made available for any of the 2009
            through 2012 crops of hard white wheat, the Secretary shall
            make available incentive payments to producers of those crops.
                (B) Acreage limitation.--The Secretary shall carry out
            subparagraph (A) subject to a regional limitation determined by
            the Secretary on the number of acres for which payments may be
            received that takes into account planting history and potential
            planting, but does not exceed a total of 2,900,000 acres or the
            equivalent volume of production based on a yield of 50 bushels
            per acre.
                (C) Payment limitations.--Payments to producers on a farm
            described in subparagraph (A) shall be--
                    (i) in an amount that is not less than $0.20 per
                bushel; and
                    (ii) in an amount that is not less than $2.00 per acre
                for planting eligible hard white wheat seed.
        (c) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section $35,000,000 for the period of
    fiscal years 2009 through 2012.
    SEC. 1613. DURUM WHEAT QUALITY PROGRAM.
        (a) In General.--Subject to the availability of funds under
    subsection (c), the Secretary shall provide compensation to producers
    of durum wheat in an amount not to exceed 50 percent of the actual cost
    of fungicides applied to a crop of durum wheat of the producers to
    control Fusarium head blight (wheat scab) on acres certified to have
    been planted to Durum wheat in a crop year.
        (b) Insufficient Funds.--If the total amount of funds appropriated
    for a fiscal year under subsection (c) are insufficient to fulfill all
    eligible requests for compensation under this section, the Secretary
    shall prorate the compensation payments in a manner determined by the
    Secretary to be equitable.
        (c) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $10,000,000 for each of fiscal
    years 2009 through 2012.
    SEC. 1614. STORAGE FACILITY LOANS.
        (a) In General.--As soon as practicable after the date of enactment
    of this Act, the Secretary shall establish a storage facility loan
    program to provide funds for producers of grains, oilseeds, pulse
    crops, hay, renewable biomass, and other storable commodities (other
    than sugar), as determined by the Secretary, to construct or upgrade
    storage and handling facilities for the commodities.
        (b) Eligible Producers.--A storage facility loan under this section
    shall be made available to any producer described in subsection (a)
    that, as determined by the Secretary--
            (1) has a satisfactory credit history;
            (2) has a need for increased storage capacity; and
            (3) demonstrates an ability to repay the loan.
        (c) Term of Loans.--A storage facility loan under this section
    shall have a maximum term of 12 years.
        (d) Loan Amount.--The maximum principal amount of a storage
    facility loan under this section shall be $500,000.
        (e) Loan Disbursements.--The Secretary shall provide for 1 partial
    disbursement of loan principal and 1 final disbursement of loan
    principal, as determined to be appropriate and subject to acceptable
    documentation, to facilitate the purchase and construction of eligible
    facilities.
        (f) Loan Security.--Approval of a storage facility loan under this
    section shall--
            (1) require the borrower to provide loan security to the
        Secretary, in the form of--
                (A) a lien on the real estate parcel on which the storage
            facility is located; or
                (B) such other security as is acceptable to the Secretary;
            (2) under such rules and regulations as the Secretary may
        prescribe, not require a severance agreement from the holder of any
        prior lien on the real estate parcel on which the storage facility
        is located, if the borrower--
                (A) agrees to increase the down payment on the storage
            facility by an amount determined appropriate by the Secretary;
            or
                (B) provides other security acceptable to the Secretary;
            and
            (3) allow a borrower, upon the approval of the Secretary, to
        define a subparcel of real estate as security for the storage
        facility loan if the subparcel is--
                (A) of adequate size and value to adequately secure the
            loan; and
                (B) not subject to any other liens or mortgages that are
            superior to the lien interest of the Commodity Credit
            Corporation.
    SEC. 1615. STATE, COUNTY, AND AREA COMMITTEES.
        Section 8(b)(5)(B)(ii) of the Soil Conservation and Domestic
    Allotment Act (16 U.S.C. 590h(b)(5)(B)(ii)) is amended--
            (1) by redesignating subclauses (I) and (II) as items (aa) and
        (bb), respectively, and indenting appropriately;
            (2) in the matter preceding item (aa) (as redesignated by
        paragraph (1)), by striking ``A committee established'' and
        inserting the following:

                        ``(I) In general.--Except as provided in subclause
                    (II), a committee established''; and

            (3) by adding at the end the following:

                        ``(II) Combination or consolidation of areas.--A
                    committee established by combining or consolidating 2
                    or more county or area committees shall consist of not
                    fewer than 3 nor more than 11 members that--

                            ``(aa) are fairly representative of the
                        agricultural producers within the area covered by
                        the county, area, or local committee; and
                            ``(bb) are elected by the agricultural
                        producers that participate or cooperate in programs
                        administered within the area under the jurisdiction
                        of the county, area, or local committee.

                        ``(III) Representation of socially disadvantaged
                    farmers and ranchers.--The Secretary shall develop
                    procedures to maintain representation of socially
                    disadvantaged farmers and ranchers on combined or
                    consolidated committees.
                        ``(IV) Eligibility for membership.--Notwithstanding
                    any other producer eligibility requirements for service
                    on county or area committees, if a county or area is
                    consolidated or combined, a producer shall be eligible
                    to serve only as a member of the county or area
                    committee that the producer elects to administer the
                    farm records of the producer.''.

    SEC. 1616. PROHIBITION ON CHARGING CERTAIN FEES.
        Public Law 108-470 (7 U.S.C. 7416a) is amended--
            (1) in subsection (a), by striking ``may'' and inserting
        ``shall''; and
            (2) by adding at the end the following:
        ``(c) Prohibition on Charging Certain Fees.--The Secretary may not
    charge any fees or related costs for the collection of commodity
    assessments pursuant to this Act.''.
    SEC. 1617. SIGNATURE AUTHORITY.
        (a) In General.--In carrying out this title and title II and
    amendments made by those titles, if the Secretary approves a document,
    the Secretary shall not subsequently determine the document is
    inadequate or invalid because of the lack of authority of any person
    signing the document on behalf of the applicant or any other
    individual, entity, general partnership, or joint venture, or the
    documents relied upon were determined inadequate or invalid, unless the
    person signing the program document knowingly and willfully falsified
    the evidence of signature authority or a signature.
        (b) Affirmation.--
            (1) In general.--Nothing in this section prohibits the
        Secretary from asking a proper party to affirm any document that
        otherwise would be considered approved under subsection (a).
            (2) No retroactive effect.--A denial of benefits based on a
        lack of affirmation under paragraph (1) shall not be retroactive
        with respect to third-party producers who were not the subject of
        the erroneous representation of authority, if the third-party
        producers--
                (A) relied on the prior approval by the Secretary of the
            documents in good faith; and
                (B) substantively complied with all program requirements
    SEC. 1618. MODERNIZATION OF FARM SERVICE AGENCY.
        Not later than 180 days after the date of enactment of this Act,
    the Secretary shall transmit to the Committee on Agriculture and the
    Committee on Appropriations of the House of Representatives and the
    Committee on Agriculture, Nutrition, and Forestry and the Committee on
    Appropriations of the Senate a report prepared by a third party that
    describes--
            (1) the data processing and information technology challenges
        experienced in local offices of the Farm Service Agency;
            (2) the impact of those challenges on service to producers, on
        efficiency of personnel, and on implementation of this Act;
            (3) the need for information technology system upgrades of the
        Farm Service Agency relative to other agencies of the Department of
        Agriculture;
            (4) the detailed plan needed to fulfill the needs of the
        Department that are identified in paragraph (3), including
        hardware, software, and infrastructure requirements;
            (5) the estimated cost and timeframe for long-term
        modernization and stabilization of Farm Service Agency information
        technology systems;
            (6) the benefits associated with such modernization and
        stabilization; and
            (7) an evaluation of the existence of appropriate oversight
        within the Department to ensure that funds needed for systems
        upgrades can be appropriately managed.
    SEC. 1619. INFORMATION GATHERING.
        (a) Geospatial Systems.--The Secretary shall ensure that all the
    geospatial data of the agencies of the Department of Agriculture are
    portable and standardized.
        (b) Limitation on Disclosures.--
            (1) Definition of agricultural operation.--In this subsection,
        the term ``agricultural operation'' includes the production and
        marketing of agricultural commodities and livestock.
            (2) Prohibition.--Except as provided in paragraphs (3) and (4),
        the Secretary, any officer or employee of the Department of
        Agriculture, or any contractor or cooperator of the Department,
        shall not disclose--
                (A) information provided by an agricultural producer or
            owner of agricultural land concerning the agricultural
            operation, farming or conservation practices, or the land
            itself, in order to participate in programs of the Department;
            or
                (B) geospatial information otherwise maintained by the
            Secretary about agricultural land or operations for which
            information described in subparagraph (A) is provided.
            (3) Authorized disclosures.--
                (A) Limited release of information.--If the Secretary
            determines that the information described in paragraph (2) will
            not be subsequently disclosed except in accordance with
            paragraph (4), the Secretary may release or disclose the
            information to a person or Federal, State, local, or tribal
            agency working in cooperation with the Secretary in any
            Department program--
                    (i) when providing technical or financial assistance
                with respect to the agricultural operation, agricultural
                land, or farming or conservation practices; or
                    (ii) when responding to a disease or pest threat to
                agricultural operations, if the Secretary determines that a
                threat to agricultural operations exists and the disclosure
                of information to a person or cooperating government entity
                is necessary to assist the Secretary in responding to the
                disease or pest threat as authorized by law.
            (4) Exceptions.--Nothing in this subsection affects--
                (A) the disclosure of payment information (including
            payment information and the names and addresses of recipients
            of payments) under any Department program that is otherwise
            authorized by law;
                (B) the disclosure of information described in paragraph
            (2) if the information has been transformed into a statistical
            or aggregate form without naming any--
                    (i) individual owner, operator, or producer; or
                    (ii) specific data gathering site; or
                (C) the disclosure of information described in paragraph
            (2) pursuant to the consent of the agricultural producer or
            owner of agricultural land.
            (5) Condition of other programs.--The participation of the
        agricultural producer or owner of agricultural land in, or receipt
        of any benefit under, any program administered by the Secretary may
        not be conditioned on the consent of the agricultural producer or
        owner of agricultural land under paragraph (4)(C).
            (6) Waiver of privilege or protection.--The disclosure of
        information under paragraph (2) shall not constitute a waiver of
        any applicable privilege or protection under Federal law, including
        trade secret protection.
    SEC. 1620. LEASING OF OFFICE SPACE.
        Not later than 1 year after the date of enactment of this Act, the
    Secretary shall submit to the Committee on Agriculture and the
    Committee on Appropriations of the House of Representatives and the
    Committee on Agriculture, Nutrition, and Forestry and the Committee on
    Appropriations of the Senate a report that describes--
            (1) the costs and time associated with complying with leasing
        procedures of the General Services Administration relative to the
        previous independent leasing procedures of the Department of
        Agriculture;
            (2) the additional staffing needs associated with complying
        with those procedures; and
            (3) the value added to the leasing process and the ability of
        the Department to secure best-value leases by complying with the
        General Services Administration leasing procedures.
    SEC. 1621. GEOGRAPHICALLY DISADVANTAGED FARMERS AND RANCHERS.
        (a) Definitions.--In this section:
            (1) Agricultural commodity.--The term ``agricultural
        commodity'' has the meaning given the term in section 102 of the
        Agricultural Trade Act of 1978 (7 U.S.C. 5602).
            (2) Geographically disadvantaged farmer or rancher.--The term
        ``geographically disadvantaged farmer or rancher'' has the meaning
        given the term in section 10906(a) of the Farm Security and Rural
        Investment Act of 2002 (7 U.S.C. 2204 note; Public Law 107-171).
        (b) Authorization.--Subject to the availability of funds under
    subsection (d), the Secretary may provide geographically disadvantaged
    farmers or ranchers direct reimbursement payments for activities
    described in subsection (c).
        (c) Transportation.--
            (1) In general.--Subject to paragraphs (2) and (3), the
        Secretary may provide direct reimbursement payments to a
        geographically disadvantaged farmer or rancher to transport an
        agricultural commodity, or inputs used to produce an agricultural
        commodity, during a fiscal year.
            (2) Proof of eligibility.--To be eligible to receive assistance
        under paragraph (1), a geographically disadvantaged farmer or
        rancher shall demonstrate to the Secretary that transportation of
        the agricultural commodity or inputs occurred over a distance of
        more than 30 miles, as determined by the Secretary.
            (3) Amount.--
                (A) In general.--Subject to paragraph (2), the amount of
            direct reimbursement payments made to a geographically
            disadvantaged farmer or rancher under this section for a fiscal
            year shall equal the product obtained by multiplying--
                    (i) the amount of costs incurred by the geographically
                disadvantaged farmer or rancher for transportation of the
                agricultural commodity or inputs during the fiscal year;
                and
                    (ii)(I) the percentage of the allowance for that fiscal
                year under section 5941 of title 5, United States Code, for
                Federal employees stationed in Alaska and Hawaii; or
                    (II) in the case of an insular area (as defined in
                section 1404 of the National Agricultural Research,
                Extension, and Teaching Policy Act of 1977 (7 U.S.C.
                3103)), a comparable percentage of the allowance for the
                fiscal year, as determined by the Secretary.
                (B) Limitation.--The total amount of direct reimbursement
            payments provided by the Secretary under this section shall not
            exceed $15,000,000 for a fiscal year.
        (d) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as are necessary to carry out this section for
    each of fiscal years 2009 through 2012.
    SEC. 1622. IMPLEMENTATION.
        The Secretary shall make available to the Farm Service Agency to
    carry out this title $50,000,000.
    SEC. 1623. REPEALS.
        (a) Commission on Application of Payment Limitations.--Section 1605
    of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7993)
    is repealed.
        (b) Renewed Availability of Market Loss Assistance and Certain
    Emergency Assistance to Persons That Failed To Receive Assistance Under
    Earlier Authorities.--Section 1617 of the Farm Security and Rural
    Investment Act of 2002 (7 U.S.C. 8000) is repealed.

                             TITLE II--CONSERVATION
         Subtitle A--Definitions and Highly Erodible Land and Wetland
                                  Conservation

    SEC. 2001. DEFINITIONS RELATING TO CONSERVATION TITLE OF FOOD SECURITY
    ACT OF 1985.
        (a) Beginning Farmer or Rancher.--Section 1201(a) of the Food
    Security Act of 1985 (16 U.S.C. 3801(a)) is amended--
            (1) by redesignating paragraphs (2) through (6), (7) through
        (11), (12), (13) through (15), (16), (17), and (18) as paragraphs
        (3) through (7), (9) through (13), (15), (20) through (22), (24),
        (26), and (27), respectively; and
            (2) by inserting after paragraph (1) the following new
        paragraph:
            ``(2) Beginning farmer or rancher.--The term `beginning farmer
        or rancher' has the meaning given the term in section 343(a)(8) of
        the Consolidated Farm and Rural Development Act (7 U.S.C.
        1991(a)(8)).''.
        (b) Farm.--Section 1201(a) of the Food Security Act of 1985 (16
    U.S.C. 3801(a)) is amended by inserting after paragraph (7), as
    redesignated by subsection (a)(1), the following new paragraph:
            ``(8) Farm.--The term `farm' means a farm that--
                ``(A) is under the general control of one operator;
                ``(B) has one or more owners;
                ``(C) consists of one or more tracts of land, whether or
            not contiguous;
                ``(D) is located within a county or region, as determined
            by the Secretary; and
                ``(E) may contain lands that are incidental to the
            production of perennial crops, including conserving uses,
            forestry, and livestock, as determined by the Secretary.''.
        (c) Indian Tribe.--Section 1201(a) of the Food Security Act of 1985
    (16 U.S.C. 3801(a)) is amended by inserting after paragraph (13), as
    redesignated by subsection (a)(1), the following new paragraph:
            ``(14) Indian tribe.--The term `Indian tribe' has the meaning
        given the term in section 4(e) of the Indian Self-Determination and
        Education Assistance Act (25 U.S.C. 450b(e)).''.
        (d) Integrated Pest Management; Livestock; Nonindustrial Private
    Forest Land; Person and Legal Entity.--Section 1201(a) of the Food
    Security Act of 1985 (16 U.S.C. 3801(a)) is amended by inserting after
    paragraph (15), as redesignated by subsection (a)(1), the following new
    paragraphs:
            ``(16) Integrated pest management.--The term `integrated pest
        management' means a sustainable approach to managing pests by
        combining biological, cultural, physical, and chemical tools in a
        way that minimizes economic, health, and environmental risks.
            ``(17) Livestock.--The term `livestock' means all animals
        raised on farms, as determined by the Secretary.
            ``(18) Nonindustrial private forest land.--The term
        `nonindustrial private forest land' means rural land, as determined
        by the Secretary, that--
                ``(A) has existing tree cover or is suitable for growing
            trees; and
                ``(B) is owned by any nonindustrial private individual,
            group, association, corporation, Indian tribe, or other private
            legal entity that has definitive decisionmaking authority over
            the land.
            ``(19) Person and legal entity.--For purposes of applying
        payment limitations under subtitle D, the terms `person' and `legal
        entity' have the meanings given those terms in section 1001(a) of
        this Act (7 U.S.C. 1308(a)).''.
        (e) Socially Disadvantaged Farmer or Rancher.--Section 1201(a) of
    the Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended by
    inserting after paragraph (22), as redesignated by subsection (a)(1),
    the following new paragraph:
            ``(23) Socially disadvantaged farmer or rancher.--The term
        `socially disadvantaged farmer or rancher' has the meaning given
        the term in section 2501(e)(2) of the Food, Agriculture,
        Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)(2)).''.
        (f) Technical Assistance.--Section 1201(a) of the Food Security Act
    of 1985 (16 U.S.C. 3801(a)) is amended by inserting after paragraph
    (24), as redesignated by subsection (a)(1), the following new
    paragraph:
            ``(25) Technical assistance.--The term `technical assistance'
        means technical expertise, information, and tools necessary for the
        conservation of natural resources on land active in agricultural,
        forestry, or related uses. The term includes the following:
                ``(A) Technical services provided directly to farmers,
            ranchers, and other eligible entities, such as conservation
            planning, technical consultation, and assistance with design
            and implementation of conservation practices.
                ``(B) Technical infrastructure, including activities,
            processes, tools, and agency functions needed to support
            delivery of technical services, such as technical standards,
            resource inventories, training, data, technology, monitoring,
            and effects analyses.''.
    SEC. 2002. REVIEW OF GOOD FAITH DETERMINATIONS RELATED TO HIGHLY
    ERODIBLE LAND CONSERVATION.
        Section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812) is
    amended by striking subsection (f) and inserting the following new
    subsection:
        ``(f) Graduated Penalties.--
            ``(1) Ineligibility.--No person shall become ineligible under
        section 1211 for program loans, payments, and benefits as a result
        of the failure of the person to actively apply a conservation plan,
        if the Secretary determines that the person has acted in good faith
        and without an intent to violate this subtitle.
            ``(2) Eligible reviewers.--A determination of the Secretary, or
        a designee of the Secretary, under paragraph (1) shall be reviewed
        by the applicable--
                ``(A) State Executive Director, with the technical
            concurrence of the State Conservationist; or
                ``(B) district director, with the technical concurrence of
            the area conservationist.
            ``(3) Period for implementation.--A person who meets the
        requirements of paragraph (1) shall be allowed a reasonable period
        of time, as determined by the Secretary, but not to exceed 1 year,
        during which to implement the measures and practices necessary to
        be considered to be actively applying the conservation plan of the
        person.
            ``(4) Penalties.--
                ``(A) Application.--This paragraph applies if the Secretary
            determines that--
                    ``(i) a person has failed to comply with section 1211
                with respect to highly erodible cropland, and has acted in
                good faith and without an intent to violate section 1211;
                or
                    ``(ii) the violation--

                        ``(I) is technical and minor in nature; and
                        ``(II) has a minimal effect on the erosion control
                    purposes of the conservation plan applicable to the
                    land on which the violation has occurred.

                ``(B) Reduction.--If this paragraph applies under
            subparagraph (A), the Secretary shall, in lieu of applying the
            ineligibility provisions of section 1211, reduce program
            benefits described in section 1211 that the producer would
            otherwise be eligible to receive in a crop year by an amount
            commensurate with the seriousness of the violation, as
            determined by the Secretary.
            ``(5) Subsequent crop years.--Any person whose benefits are
        reduced for any crop year under this subsection shall continue to
        be eligible for all of the benefits described in section 1211 for
        any subsequent crop year if, prior to the beginning of the
        subsequent crop year, the Secretary determines that the person is
        actively applying a conservation plan according to the schedule
        specified in the plan.''.
    SEC. 2003. REVIEW OF GOOD FAITH DETERMINATIONS RELATED TO WETLAND
    CONSERVATION.
        Section 1222(h) of the Food Security Act of 1985 (16 U.S.C.
    3822(h)) is amended--
            (1) by redesignating paragraph (2) as paragraph (3);
            (2) by inserting after paragraph (1) the following new
        paragraph:
            ``(2) Eligible reviewers.--A determination of the Secretary, or
        a designee of the Secretary, under paragraph (1) shall be reviewed
        by the applicable--
                ``(A) State Executive Director, with the technical
            concurrence of the State Conservationist; or
                ``(B) district director, with the technical concurrence of
            the area conservationist.''; and
            (3) in paragraph (3) (as redesignated by paragraph (1)), by
        inserting ``be'' before ``actively''.

                    Subtitle B--Conservation Reserve Program

    SEC. 2101. EXTENSION OF CONSERVATION RESERVE PROGRAM.
        Section 1231(a) of the Food Security Act of 1985 (16 U.S.C.
    3831(a)) is amended--
            (1) by striking ``2007 calendar year'' and inserting ``2012
        fiscal year''; and
            (2) by inserting before the period the following: ``and to
        address issues raised by State, regional, and national conservation
        initiatives''; and
    SEC. 2102. LAND ELIGIBLE FOR ENROLLMENT IN CONSERVATION RESERVE.
        Section 1231(b) of the Food Security Act of 1985 (16 U.S.C.
    3831(b)) is amended--
            (1) in paragraph (1)(B)--
                (A) by striking ``Farm Security and Rural Investment Act of
            2002'' and inserting ``Food, Conservation, and Energy Act of
            2008''; and
                (B) by striking the period at the end and inserting a
            semicolon; and
            (2) in paragraph (4)--
                (A) in subparagraph (C), by striking ``; or'' and inserting
            a semicolon;
                (B) in subparagraph (D), by striking ``and'' at the end and
            inserting ``or''; and
                (C) in subparagraph (E), by inserting ``or'' after the
            semicolon at the end.
    SEC. 2103. MAXIMUM ENROLLMENT OF ACREAGE IN CONSERVATION RESERVE.
        Section 1231(d) of the Food Security Act of 1985 (16 U.S.C.
    3831(d)) is amended--
            (1) by striking ``2007 calendar years'' and inserting ``2009
        fiscal years'';
            (2) by striking ``( 16 U.S.C.'' and inserting ``(16 U.S.C.'';
        and
            (3) by adding at the end the following new sentence: ``During
        fiscal years 2010, 2011, and 2012, the Secretary may maintain up to
        32,000,000 acres in the conservation reserve at any 1 time.''.
    SEC. 2104. DESIGNATION OF CONSERVATION PRIORITY AREAS.
        Section 1231(f) of the Food Security Act of 1985 (16 U.S.C.
    3831(f)) is amended by striking ``the Chesapeake Bay Region
    (Pennsylvania, Maryland, and Virginia)'' and inserting ``the Chesapeake
    Bay Region''.
    SEC. 2105. TREATMENT OF MULTI-YEAR GRASSES AND LEGUMES.
        Subsection (g) of section 1231 of the Food Security Act of 1985 (16
    U.S.C. 3831) is amended to read as follows:
        ``(g) Multi-Year Grasses and Legumes.--
            ``(1) In general.--For purposes of this subchapter, alfalfa and
        other multi-year grasses and legumes in a rotation practice,
        approved by the Secretary, shall be considered agricultural
        commodities.
            ``(2) Cropping history.--Alfalfa, when grown as part of a
        rotation practice, as determined by the Secretary, is an
        agricultural commodity subject to the cropping history criteria
        under subsection (b)(1)(B) for the purpose of determining whether
        highly erodible cropland has been planted or considered planted for
        4 of the 6 years referred to in such subsection.''.
    SEC. 2106. REVISED PILOT PROGRAM FOR ENROLLMENT OF WETLAND AND BUFFER
    ACREAGE IN CONSERVATION RESERVE.
        (a) Revised Program.--
            (1) In general.--Title XII of the Food Security Act of 1985 is
        amended by inserting after section 1231 (16 U.S.C. 3831) the
        following new section:
    ``SEC. 1231B. PILOT PROGRAM FOR ENROLLMENT OF WETLAND AND BUFFER
    ACREAGE IN CONSERVATION RESERVE.
        ``(a) Program Required.--
            ``(1) In general.--During the 2008 through 2012 fiscal years,
        the Secretary shall carry out a program in each State under which
        the Secretary shall enroll eligible acreage described in subsection
        (b).
            ``(2) Participation among states.--The Secretary shall ensure,
        to the maximum extent practicable, that owners and operators in
        each State have an equitable opportunity to participate in the
        program established under this section.
        ``(b) Eligible Acreage.--
            ``(1) Wetland and related land.--Subject to subsections (c) and
        (d), an owner or operator may enroll in the conservation reserve,
        pursuant to the program established under this section, land--
                ``(A) that is wetland (including a converted wetland
            described in section 1222(b)(1)(A)) that had a cropping history
            during at least 3 of the immediately preceding 10 crop years;
                ``(B) on which a constructed wetland is to be developed
            that will receive flow from a row crop agriculture drainage
            system and is designed to provide nitrogen removal in addition
            to other wetland functions;
                ``(C) that was devoted to commercial pond-raised
            aquaculture in any year during the period of calendar years
            2002 through 2007; or
                ``(D) that, after January 1, 1990, and before December 31,
            2002, was--
                    ``(i) cropped during at least 3 of 10 crop years; and
                    ``(ii) subject to the natural overflow of a prairie
                wetland.
            ``(2) Buffer acreage.--Subject to subsections (c) and (d), an
        owner or operator may enroll in the conservation reserve, pursuant
        to the program established under this section, buffer acreage
        that--
                ``(A) with respect to land described in subparagraph (A),
            (B), or (C) of paragraph (1)--
                    ``(i) is contiguous to such land
                    ``(ii) is used to protect such land; and
                    ``(iii) is of such width as the Secretary determines is
                necessary to protect such land, taking into consideration
                and accommodating the farming practices (including the
                straightening of boundaries to accommodate machinery) used
                with respect to the cropland that surrounds such land; and
                ``(B) with respect to land described in subparagraph (D) of
            paragraph (1), enhances a wildlife benefit to the extent
            practicable in terms of upland to wetland ratios, as determined
            by the Secretary.
        ``(c) Program Limitations.--
            ``(1) Acreage limitation.--The Secretary may enroll in the
        conservation reserve, pursuant to the program established under
        this section, not more than--
                ``(A) 100,000 acres in any State; and
                ``(B) a total of 1,000,000 acres.
            ``(2) Relationship to maximum enrollment.--Subject to paragraph
        (3), any acreage enrolled in the conservation reserve under this
        section shall be considered acres maintained in the conservation
        reserve.
            ``(3) Relationship to other enrolled acreage.--Acreage enrolled
        in the conservation reserve under this section shall not affect for
        any fiscal year the quantity of--
                ``(A) acreage enrolled to establish conservation buffers as
            part of the program announced on March 24, 1998 (63 Fed. Reg.
            14109); or
                ``(B) acreage enrolled into the conservation reserve
            enhancement program announced on May 27, 1998 (63 Fed. Reg.
            28965).
            ``(4) Review; potential increase in enrollment acreage.--The
        Secretary shall conduct a review of the program established under
        this section with respect to each State that has enrolled land in
        the conservation reserve pursuant to the program. As a result of
        the review, the Secretary may increase the number of acres that may
        be enrolled in a State under the program to not more than 200,000
        acres, notwithstanding paragraph (1)(A).
        ``(d) Owner or Operator Enrollment Limitations.--
            ``(1) Wetland and related land.--
                ``(A) Wetlands and constructed wetlands.--The maximum size
            of any land described in subparagraph (A) or (B) of subsection
            (b)(1) that an owner or operator may enroll in the conservation
            reserve, pursuant to the program established under this
            section, shall be 40 contiguous acres.
                ``(B) Flooded farmland.--The maximum size of any land
            described in subparagraph (D) of subsection (b)(1) that an
            owner or operator may enroll in the conservation reserve,
            pursuant to the program established under this section, shall
            be 20 contiguous acres.
                ``(C) Coverage.--All acres described in subparagraph (A) or
            (B), including acres that are ineligible for payment, shall be
            covered by the conservation contract.
            ``(2) Buffer acreage.--The maximum size of any buffer acreage
        described in subsection (b)(2) that an owner or operator may enroll
        in the conservation reserve under this section shall be determined
        by the Secretary in consultation with the State Technical
        Committee.
            ``(3) Tracts.--Except for land described in subsection
        (b)(1)(C) and buffer acreage related to such land, the maximum size
        of any eligible acreage described in subsection (b)(1) in a tract
        of an owner or operator enrolled in the conservation reserve under
        this section shall be 40 acres.
        ``(e) Duties of Owners and Operators.--During the term of a
    contract entered into under the program established under this section,
    an owner or operator shall agree--
            ``(1) to restore the hydrology of the wetland within the
        eligible acreage to the maximum extent practicable, as determined
        by the Secretary;
            ``(2) to establish vegetative cover (which may include emerging
        vegetation in water and bottomland hardwoods, cypress, and other
        appropriate tree species) on the eligible acreage, as determined by
        the Secretary;
            ``(3) to a general prohibition of commercial use of the
        enrolled land; and
            ``(4) to carry out other duties described in section 1232.
        ``(f) Duties of the Secretary.--
            ``(1) In general.--Except as provided in paragraphs (2) and
        (3), in return for a contract entered into under this section, the
        Secretary shall--
                ``(A) make payments to the owner or operator based on
            rental rates for cropland; and
                ``(B) provide assistance to the owner or operator in
            accordance with sections 1233 and 1234.
            ``(2) Contract offers and payments.--The Secretary shall use
        the method of determination described in section 1234(c)(2)(B) to
        determine the acceptability of contract offers and the amount of
        rental payments under this section.
            ``(3) Incentives.--The amounts payable to owners and operators
        in the form of rental payments under contracts entered into under
        this section shall reflect incentives that are provided to owners
        and operators to enroll filterstrips in the conservation reserve
        under section 1234.''.
            (2) Repeal of superceded program.--Section 1231 of the Food
        Security Act of 1985 (16 U.S.C. 3831) is amended--
                (A) by striking subsection (h); and
                (B) by redesignating subsections (i) and (j) as subsections
            (h) and (i), respectively.
        (b) Conforming Changes to Emergency Forestry Conservation Reserve
    Program.--Subsection (k) of section 1231 of the Food Security Act of
    1985 (16 U.S.C. 3831) is amended--
            (1) by striking ``(k) Emergency Forestry Conservation Reserve
        Program.--'' and inserting the following:
    ``SEC. 1231A. EMERGENCY FORESTRY CONSERVATION RESERVE PROGRAM.'';
            (2) by striking ``subsection'' each place it appears (other
        than paragraph (3)(C)(ii)) and inserting ``section'';
            (3) by redesignating paragraphs (1), (2), and (3) as
        subsections (a), (b), and (c), respectively;
            (4) in subsection (a), as so redesignated, by redesignating
        subparagraphs (A) and (B) as paragraphs (1) and (2), respectively;
        and
            (5) in subsection (c), as so redesignated--
                (A) by redesignating subparagraphs (A) through (I) as
            paragraphs (1) through (9), respectively;
                (B) in paragraph (1), as so redesignated, by striking
            ``subparagraph (B)'' and ``subparagraph (G)'' and inserting
            ``paragraph (2)'' and ``paragraph (7)'', respectively;
                (C) in paragraph (3), as so redesignated--
                    (i) by redesignating clauses (i) and (ii) as
                subparagraphs (A) and (B), respectively; and
                    (ii) by striking ``subsection (d)'' and inserting
                ``section 1231(d)'';
                (D) in paragraph (4), as so redesignated, by redesignating
            clauses (i) and (ii) as subparagraphs (A) and (B),
            respectively;
                (E) in paragraph (5), as so redesignated--
                    (i) by redesignating clauses (i) through (v) as
                subparagraphs (A) through (E), respectively, and subclauses
                (I) and (II) as clauses (i) and (ii), respectively;
                    (ii) in subparagraph (B), as so redesignated, by
                striking ``clause (i)(I)'' and inserting ``subparagraph
                (A)(i)''; and
                    (iii) in subparagraph (C), as so redesignated, by
                striking ``clause (i)(II)'' and inserting ``subparagraph
                (A)(ii)''; and
                (F) in paragraph (9), as so redesignated, by redesignating
            clauses (i) through (iii) as subparagraphs (A) through (C),
            respectively, and subclauses (I) through (III) as clauses (i)
            through (iii), respectively.
    SEC. 2107. ADDITIONAL DUTY OF PARTICIPANTS UNDER CONSERVATION RESERVE
    CONTRACTS.
        Section 1232(a) of the Food Security Act of 1985 (16 U.S.C.
    3832(a)) is amended--
            (1) by redesignating paragraphs (5) through (10) as paragraphs
        (6) through (11), respectively; and
            (2) by inserting after paragraph (4) the following new
        paragraph:
            ``(5) to undertake management on the land as needed throughout
        the term of the contract to implement the conservation plan;''.
    SEC. 2108. MANAGED HAYING, GRAZING, OR OTHER COMMERCIAL USE OF FORAGE
    ON ENROLLED LAND AND INSTALLATION OF WIND TURBINES.
        (a) General Prohibition; Exceptions.--Section 1232(a) of the Food
    Security Act of 1985 (16 U.S.C. 3832(a)) is amended by striking
    paragraph (8), as redesignated by section 2107, and inserting the
    following new paragraph:
            ``(8) not to conduct any harvesting or grazing, nor otherwise
        make commercial use of the forage, on land that is subject to the
        contract, nor adopt any similar practice specified in the contract
        by the Secretary as a practice that would tend to defeat the
        purposes of the contract, except that the Secretary may permit,
        consistent with the conservation of soil, water quality, and
        wildlife habitat (including habitat during nesting seasons for
        birds in the area)--
                ``(A) managed harvesting (including the managed harvesting
            of biomass), except that in permitting managed harvesting, the
            Secretary, in coordination with the State technical committee--
                    ``(i) shall develop appropriate vegetation management
                requirements; and
                    ``(ii) shall identify periods during which managed
                harvesting may be conducted;
                ``(B) harvesting and grazing or other commercial use of the
            forage on the land that is subject to the contract in response
            to a drought or other emergency;
                ``(C) routine grazing or prescribed grazing for the control
            of invasive species, except that in permitting such routine
            grazing or prescribed grazing, the Secretary, in coordination
            with the State technical committee--
                    ``(i) shall develop appropriate vegetation management
                requirements and stocking rates for the land that are
                suitable for continued routine grazing; and
                    ``(ii) shall establish the frequency during which
                routine grazing may be conducted, taking into consideration
                regional differences such as--

                        ``(I) climate, soil type, and natural resources;
                        ``(II) the number of years that should be required
                    between routine grazing activities; and
                        ``(III) how often during a year in which routine
                    grazing is permitted that routine grazing should be
                    allowed to occur; and

                ``(D) the installation of wind turbines, except that in
            permitting the installation of wind turbines, the Secretary
            shall determine the number and location of wind turbines that
            may be installed, taking into account--
                    ``(i) the location, size, and other physical
                characteristics of the land;
                    ``(ii) the extent to which the land contains wildlife
                and wildlife habitat; and
                    ``(iii) the purposes of the conservation reserve
                program under this subchapter;''.
        (b) Rental Payment Reduction.--Section 1232 of the Food Security
    Act of 1985 (16 U.S.C. 3832) is amended by adding at the end the
    following new subsection:
        ``(d) Rental Payment Reduction for Certain Authorized Uses of
    Enrolled Land.--In the case of an authorized activity under subsection
    (a)(8) on land that is subject to a contract under this subchapter, the
    Secretary shall reduce the rental payment otherwise payable under the
    contract by an amount commensurate with the economic value of the
    authorized activity.''.
    SEC. 2109. COST SHARING PAYMENTS RELATING TO TREES, WINDBREAKS,
    SHELTERBELTS, AND WILDLIFE CORRIDORS.
        Section 1234(b) of the Food Security Act of 1985 (16 U.S.C.
    3834(b)) is amended by striking paragraph (3) and inserting the
    following new paragraph:
            ``(3) Trees, windbreaks, shelterbelts, and wildlife
        corridors.--
                ``(A) Applicability.--This paragraph applies to--
                    ``(i) land devoted to the production of hardwood trees,
                windbreaks, shelterbelts, or wildlife corridors under a
                contract entered into under this subchapter after November
                28, 1990;
                    ``(ii) land converted to such production under section
                1235A; and
                    ``(iii) land on which an owner or operator agrees to
                conduct thinning authorized by section 1232(a)(9), if the
                thinning is necessary to improve the condition of resources
                on the land.
                ``(B) Payments.--
                    ``(i) Percentage.--In making cost share payments to an
                owner or operator of land described in subparagraph (A),
                the Secretary shall pay 50 percent of the reasonable and
                necessary costs incurred by the owner or operator for
                maintaining trees or shrubs, including the cost of
                replanting (if the trees or shrubs were lost due to
                conditions beyond the control of the owner or operator) or
                thinning.
                    ``(ii) Duration.--The Secretary shall make payments as
                described in clause (i) for a period of not less than 2
                years, but not more than 4 years, beginning on the date
                of--

                        ``(I) the planting of the trees or shrubs; or
                        ``(II) the thinning of existing stands to improve
                    the condition of resources on the land.''.

    SEC. 2110. EVALUATION AND ACCEPTANCE OF CONTRACT OFFERS, ANNUAL RENTAL
    PAYMENTS, AND PAYMENT LIMITATIONS.
        (a) Evaluation and Acceptance of Contract Offers.--Section 1234(c)
    of the Food Security Act of 1985 (16 U.S.C. 3834(c)) is amended by
    striking paragraph (3) and inserting the following new paragraph:
            ``(3) Acceptance of contract offers.--
                ``(A) Evaluation of offers.--In determining the
            acceptability of contract offers, the Secretary may take into
            consideration the extent to which enrollment of the land that
            is the subject of the contract offer would improve soil
            resources, water quality, or wildlife habitat or provide other
            environmental benefits.
                ``(B) Establishment of different criteria in various states
            and regions.--The Secretary may establish different criteria
            for determining the acceptability of contract offers in various
            States and regions of the United States based on the extent to
            which water quality or wildlife habitat may be improved or
            erosion may be abated.
                ``(C) Local preference.--In determining the acceptability
            of contract offers for new enrollments, the Secretary shall
            accept, to the maximum extent practicable, an offer from an
            owner or operator that is a resident of the county in which the
            land is located or of a contiguous county if, as determined by
            the Secretary, the land would provide at least equivalent
            conservation benefits to land under competing offers.''.
        (b) Annual Survey of Dryland and Irrigated Cash Rental Rates.--
            (1) Annual estimates required.--Section 1234(c) of the Food
        Security Act of 1985 (16 U.S.C. 3834(c)) is amended by adding at
        the end the following new paragraph:
            ``(5) Rental rates.--
                ``(A) Annual estimates.--The Secretary (acting through the
            National Agricultural Statistics Service) shall conduct an
            annual survey of per acre estimates of county average market
            dryland and irrigated cash rental rates for cropland and
            pastureland in all counties or equivalent subdivisions within
            each State that have 20,000 acres or more of cropland and
            pastureland.
                ``(B) Public availability of estimates.--The estimates
            derived from the annual survey conducted under subparagraph (A)
            shall be maintained on a website of the Department of
            Agriculture for use by the general public.''.
            (2) First survey.--The first survey required by paragraph (5)
        of section 1234(c) of the Food Security Act of 1985 (16 U.S.C.
        3834(c)), as added by subsection (a), shall be conducted not later
        than 1 year after the date of enactment of this Act.
        (c) Payment Limitations.--Section 1234(f) of the Food Security Act
    of 1985 (16 U.S.C. 3834(f)) is amended--
            (1) in paragraph (1), by striking ``made to a person'' and
        inserting ``received by a person or legal entity, directly or
        indirectly,'';
            (2) by striking paragraph (2); and
            (3) in paragraph (4), by striking ``any person'' and inserting
        ``any person or legal entity''.
    SEC. 2111. CONSERVATION RESERVE PROGRAM TRANSITION INCENTIVES FOR
    BEGINNING FARMERS OR RANCHERS AND SOCIALLY DISADVANTAGED FARMERS OR
    RANCHERS.
        (a) Contract Modification Authority.--Section 1235(c)(1)(B) of the
    Food Security Act of 1985 (16 U.S.C. 3835(c)(1)(B)) is amended--
            (1) in clause (ii), by striking ``or'' at the end;
            (2) by redesignating clause (iii) as clause (iv); and
            (3) by inserting after clause (ii) the following new clause:
                    ``(iii) to facilitate a transition of land subject to
                the contract from a retired or retiring owner or operator
                to a beginning farmer or rancher or socially disadvantaged
                farmer or rancher for the purpose of returning some or all
                of the land into production using sustainable grazing or
                crop production methods; or''.
        (b) Transition Option.--Section 1235 of the Food Security Act of
    1985 (16 U.S.C. 3835) is amended by adding at the end the following new
    subsection:
        ``(f) Transition Option for Certain Farmers or Ranchers.--
            ``(1) Duties of the secretary.--In the case of a contract
        modification approved in order to facilitate the transfer, as
        described in subsection (c)(1)(B)(iii), of land to a beginning
        farmer or rancher or socially disadvantaged farmer or rancher (in
        this subsection referred to as a `covered farmer or rancher'), the
        Secretary shall--
                ``(A) beginning on the date that is 1 year before the date
            of termination of the contract--
                    ``(i) allow the covered farmer or rancher, in
                conjunction with the retired or retiring owner or operator,
                to make conservation and land improvements; and
                    ``(ii) allow the covered farmer or rancher to begin the
                certification process under the Organic Foods Production
                Act of 1990 (7 U.S.C. 6501 et seq.);
                ``(B) beginning on the date of termination of the contract,
            require the retired or retiring owner or operator to sell or
            lease (under a long-term lease or a lease with an option to
            purchase) to the covered farmer or rancher the land subject to
            the contract for production purposes;
                ``(C) require the covered farmer or rancher to develop and
            implement a conservation plan;
                ``(D) provide to the covered farmer or rancher an
            opportunity to enroll in the conservation stewardship program
            or the environmental quality incentives program by not later
            than the date on which the farmer or rancher takes possession
            of the land through ownership or lease; and
                ``(E) continue to make annual payments to the retired or
            retiring owner or operator for not more than an additional 2
            years after the date of termination of the contract, if the
            retired or retiring owner or operator is not a family member
            (as defined in section 1001A(b)(3)(B) of this Act) of the
            covered farmer or rancher.
            ``(2) Reenrollment.--The Secretary shall provide a covered
        farmer or rancher with the option to reenroll any applicable
        partial field conservation practice that--
                ``(A) is eligible for enrollment under the continuous
            signup requirement of section 1231(h)(4)(B); and
                ``(B) is part of an approved conservation plan.''.

                      Subtitle C--Wetlands Reserve Program

    SEC. 2201. ESTABLISHMENT AND PURPOSE OF WETLANDS RESERVE PROGRAM.
        Subsection (a) of section 1237 of the Food Security Act of 1985 (16
    U.S.C. 3837) is amended to read as follows:
        ``(a) Establishment and Purposes.--
            ``(1) Establishment.--The Secretary shall establish a wetlands
        reserve program to assist owners of eligible lands in restoring and
        protecting wetlands.
            ``(2) Purposes.--The purposes of the wetlands reserve program
        are to restore, protect, or enhance wetlands on private or tribal
        lands that are eligible under subsections (c) and (d).''.
    SEC. 2202. MAXIMUM ENROLLMENT AND ENROLLMENT METHODS.
        Section 1237(b) of the Food Security Act of 1985 (16 U.S.C.
    3837(b)) is amended--
            (1) by striking paragraph (1) and inserting the following new
        paragraph:
            ``(1) Maximum enrollment.--The total number of acres enrolled
        in the wetlands reserve program shall not exceed 3,041,200
        acres.'';
            (2) in paragraph (2), by striking ``The Secretary'' and
        inserting ``Subject to paragraph (3), the Secretary''; and
            (3) by adding at the end the following new paragraph:
            ``(3) Acreage owned by indian tribes.--In the case of acreage
        owned by an Indian tribe, the Secretary shall enroll acreage into
        the wetlands reserve program through the use of--
                ``(A) a 30-year contract (the value of which shall be
            equivalent to the value of a 30-year easement);
                ``(B) restoration cost-share agreements; or
                ``(C) any combination of the options described in
            subparagraphs (A) and (B).''.
    SEC. 2203. DURATION OF WETLANDS RESERVE PROGRAM AND LANDS ELIGIBLE FOR
    ENROLLMENT.
        (a) In General.--Section 1237(c) of the Food Security Act of 1985
    (16 U.S.C. 3837(c)) is amended--
            (1) in the matter preceding paragraph (1)--
                (A) by striking ``2007 calendar'' and inserting ``2012
            fiscal''; and
                (B) by inserting ``private or tribal'' before ``land'' the
            second place it appears;
            (2) by striking paragraph (2) and inserting the following new
        paragraph:
            ``(2) such land is--
                ``(A) farmed wetland or converted wetland, together with
            the adjacent land that is functionally dependent on the
            wetlands, except that converted wetland with respect to which
            the conversion was not commenced prior to December 23, 1985,
            shall not be eligible to be enrolled in the program under this
            section; or
                ``(B) cropland or grassland that was used for agricultural
            production prior to flooding from the natural overflow of a
            closed basin lake or pothole, as determined by the Secretary,
            together (where practicable) with the adjacent land that is
            functionally dependent on the cropland or grassland; and''.
        (b) Change of Ownership.--Section 1237E(a) of the Food Security Act
    of 1985 (16 U.S.C. 3837e(a)) is amended by striking ``in the preceding
    12 months'' and inserting ``during the preceding 7-year period''.
        (c) Annual Survey and Reallocation.--Section 1237F of the Food
    Security Act of 1985 (16 U.S.C. 3837f) is amended by adding at the end
    the following new subsection:
        ``(c) Prairie Pothole Region Survey and Reallocation.--
            ``(1) Survey.--The Secretary shall conduct a survey during
        fiscal year 2008 and each subsequent fiscal year for the purpose of
        determining interest and allocations for the Prairie Pothole Region
        to enroll eligible land described in section 1237(c)(2)(B).
            ``(2) Annual adjustment.--The Secretary shall make an
        adjustment to the allocation for an interested State for a fiscal
        year, based on the results of the survey conducted under paragraph
        (1) for the State during the previous fiscal year.''.
    SEC. 2204. TERMS OF WETLANDS RESERVE PROGRAM EASEMENTS.
        Section 1237A(b)(2)(B) of the Food Security Act of 1985 (16 U.S.C.
    3837a(b)(2)(B)) is amended--
            (1) in clause (i), by striking ``or'' at the end;
            (2) in clause (ii), by striking ``; and'' and inserting ``;
        or''; and
            (3) by adding at the end the following new clause:
                    ``(iii) to meet habitat needs of specific wildlife
                species; and''.
    SEC. 2205. COMPENSATION FOR EASEMENTS UNDER WETLANDS RESERVE PROGRAM.
        Subsection (f) of section 1237A of the Food Security Act of 1985
    (16 U.S.C. 3837a) is amended to read as follows:
        ``(f) Compensation.--
            ``(1) Determination.--Effective on the date of the enactment of
        the Food, Conservation, and Energy Act of 2008, the Secretary shall
        pay as compensation for a conservation easement acquired under this
        subchapter the lowest of--
                ``(A) the fair market value of the land, as determined by
            the Secretary, using the Uniform Standards of Professional
            Appraisal Practices or an area-wide market analysis or survey;
                ``(B) the amount corresponding to a geographical cap, as
            determined by the Secretary in regulations; or
                ``(C) the offer made by the landowner.
            ``(2) Form of payment.--Compensation for an easement shall be
        provided by the Secretary in the form of a cash payment, in an
        amount determined under paragraph (1) and specified in the easement
        agreement.
            ``(3) Payment schedule for easements.--
                ``(A) Easements valued at $500,000 or less.--For easements
            valued at $500,000 or less, the Secretary may provide easement
            payments in not more than 30 annual payments.
                ``(B) Easements in excess of $500,000.--For easements
            valued at more than $500,000, the Secretary may provide
            easement payments in at least 5, but not more than 30 annual
            payments, except that, if the Secretary determines it would
            further the purposes of the program, the Secretary may make a
            lump sum payment for such an easement.
            ``(4) Restoration agreement payment limitation.--Payments made
        to a person or legal entity, directly or indirectly, pursuant to a
        restoration cost-share agreement under this subchapter may not
        exceed, in the aggregate, $50,000 per year.
            ``(5) Enrollment procedure.--Lands may be enrolled under this
        subchapter through the submission of bids under a procedure
        established by the Secretary.''.
    SEC. 2206. WETLANDS RESERVE ENHANCEMENT PROGRAM AND RESERVED RIGHTS
    PILOT PROGRAM.
        Section 1237A of the Food Security Act of 1985 (16 U.S.C. 3837a) is
    amended by adding at the end the following new subsection:
        ``(h) Wetlands Reserve Enhancement Program.--
            ``(1) Program authorized.--The Secretary may enter into 1 or
        more agreements with a State (including a political subdivision or
        agency of a State), nongovernmental organization, or Indian tribe
        to carry out a special wetlands reserve enhancement program that
        the Secretary determines would advance the purposes of this
        subchapter.
            ``(2) Reserved rights pilot program.--
                ``(A) Reservation of grazing rights.--As part of the
            wetlands reserve enhancement program, the Secretary shall carry
            out a pilot program for land in which a landowner may reserve
            grazing rights in the warranty easement deed restriction if the
            Secretary determines that the reservation and use of the
            grazing rights--
                    ``(i) is compatible with the land subject to the
                easement;
                    ``(ii) is consistent with the long-term wetland
                protection and enhancement goals for which the easement was
                established; and
                    ``(iii) complies with a conservation plan.
                ``(B) Duration.--The pilot program established under this
            paragraph shall terminate on September 30, 2012.''.
    SEC. 2207. DUTIES OF SECRETARY OF AGRICULTURE UNDER WETLANDS RESERVE
    PROGRAM.
        Section 1237C of the Food Security Act of 1985 (16 U.S.C. 3837c) is
    amended--
            (1) in subsection (a)(1), by inserting ``including necessary
        maintenance activities,'' after ``values,''; and
            (2) by striking subsection (c) and inserting the following new
        subsection:
        ``(c) Ranking of Offers.--
            ``(1) Conservation benefits and funding considerations.--When
        evaluating offers from landowners, the Secretary may consider--
                ``(A) the conservation benefits of obtaining an easement or
            other interest in the land;
                ``(B) the cost-effectiveness of each easement or other
            interest in eligible land, so as to maximize the environmental
            benefits per dollar expended; and
                ``(C) whether the landowner or another person is offering
            to contribute financially to the cost of the easement or other
            interest in the land to leverage Federal funds.
            ``(2) Additional considerations.--In determining the
        acceptability of easement offers, the Secretary may take into
        consideration--
                ``(A) the extent to which the purposes of the easement
            program would be achieved on the land;
                ``(B) the productivity of the land; and
                ``(C) the on-farm and off-farm environmental threats if the
            land is used for the production of agricultural commodities.''.
    SEC. 2208. PAYMENT LIMITATIONS UNDER WETLANDS RESERVE CONTRACTS AND
    AGREEMENTS.
        Section 1237D(c)(1) of the Food Security Act of 1985 (16 U.S.C.
    3837d(c)(1)) is amended--
            (1) by striking ``The total amount of easement payments made to
        a person'' and inserting ``The total amount of payments that a
        person or legal entity may receive, directly or indirectly,''; and
            (2) by inserting ``or under 30-year contracts'' before the
        period at the end.
    SEC. 2209. REPEAL OF PAYMENT LIMITATIONS EXCEPTION FOR STATE AGREEMENTS
    FOR WETLANDS RESERVE ENHANCEMENT.
        Section 1237D(c) of the Food Security Act of 1985 (16 U.S.C.
    3837d(c)) is amended by striking paragraph (4).
    SEC. 2210. REPORT ON IMPLICATIONS OF LONG-TERM NATURE OF CONSERVATION
    EASEMENTS.
        (a) Report Required.--Not later than January 1, 2010, the Secretary
    of Agriculture shall submit to the Committee on Agriculture of the
    House of Representatives and the Committee on Agriculture, Nutrition,
    and Forestry of the Senate a report that evaluates the implications of
    the long-term nature of conservation easements granted under section
    1237A of the Food Security Act of 1985 (16 U.S.C. 3837a) on resources
    of the Department of Agriculture.
        (b) Inclusions.--The report required by subsection (a) shall
    include the following:
            (1) Data relating to the number and location of conservation
        easements granted under that section that the Secretary holds or
        has a significant role in monitoring or managing.
            (2) An assessment of the extent to which the oversight of the
        conservation easement agreements impacts the availability of
        resources, including technical assistance.
            (3) An assessment of the uses and value of agreements with
        partner organizations.
            (4) Any other relevant information relating to costs or other
        effects that would be helpful to the Committees referred to in
        subsection (a).

                  Subtitle D--Conservation Stewardship Program

    SEC. 2301. CONSERVATION STEWARDSHIP PROGRAM.
        (a) Establishment of Program.--Chapter 2 of subtitle D of title XII
    of the Food Security Act of 1985 is amended--
            (1) by redesignating subchapters B (farmland protection
        program) and C (grassland reserve program) as subchapters C and D,
        respectively; and
            (2) by inserting after subchapter A the following new
        subchapter:

                ``Subchapter B--Conservation Stewardship Program

    ``SEC. 1238D. DEFINITIONS.
        ``In this subchapter:
            ``(1) Conservation activities.--
                ``(A) In general.--The term `conservation activities' means
            conservation systems, practices, or management measures that
            are designed to address a resource concern.
                ``(B) Inclusions.--The term `conservation activities'
            includes--
                    ``(i) structural measures, vegetative measures, and
                land management measures, including agriculture drainage
                management systems, as determined by the Secretary; and
                    ``(ii) planning needed to address a resource concern.
            ``(2) Conservation measurement tools.--The term `conservation
        measurement tools' means procedures to estimate the level of
        environmental benefit to be achieved by a producer in implementing
        conservation activities, including indices or other measures
        developed by the Secretary.
            ``(3) Conservation stewardship plan.--The term `conservation
        stewardship plan' means a plan that--
                ``(A) identifies and inventories resource concerns;
                ``(B) establishes benchmark data and conservation
            objectives;
                ``(C) describes conservation activities to be implemented,
            managed, or improved; and
                ``(D) includes a schedule and evaluation plan for the
            planning, installation, and management of the new and existing
            conservation activities.
            ``(4) Priority resource concern.--The term `priority resource
        concern' means a resource concern that is identified at the State
        level, in consultation with the State Technical Committee, as a
        priority for a particular watershed or area of the State.
            ``(5) Program.--The term `program' means the conservation
        stewardship program established by this subchapter.
            ``(6) Resource concern.--The term `resource concern' means a
        specific natural resource impairment or problem, as determined by
        the Secretary, that--
                ``(A) represents a significant concern in a State or
            region; and
                ``(B) is likely to be addressed successfully through the
            implementation of conservation activities by producers on land
            eligible for enrollment in the program.
            ``(7) Stewardship threshold.--The term `stewardship threshold'
        means the level of natural resource conservation and environmental
        management required, as determined by the Secretary using
        conservation measurement tools, to improve and conserve the quality
        and condition of a resource concern.
    ``SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM.
        ``(a) Establishment and Purpose.--During each of fiscal years 2009
    through 2012, the Secretary shall carry out a conservation stewardship
    program to encourage producers to address resource concerns in a
    comprehensive manner--
            ``(1) by undertaking additional conservation activities; and
            ``(2) by improving, maintaining and managing existing
        conservation activities.
        ``(b) Eligible Land.--
            ``(1) In general.--Except as provided in subsection (c), the
        following land is eligible for enrollment in the program:
                ``(A) Private agricultural land (including cropland,
            grassland, prairie land, improved pastureland, rangeland, and
            land used for agro-forestry).
                ``(B) Agricultural land under the jurisdiction of an Indian
            tribe.
                ``(C) Forested land that is an incidental part of an
            agricultural operation.
                ``(D) Other private agricultural land (including cropped
            woodland, marshes, and agricultural land used for the
            production of livestock) on which resource concerns related to
            agricultural production could be addressed by enrolling the
            land in the program, as determined by the Secretary.
            ``(2) Special rule for nonindustrial private forest land.--
        Nonindustrial private forest land is eligible for enrollment in the
        program, except that not more than 10 percent of the annual acres
        enrolled nationally in any fiscal year may be nonindustrial private
        forest land.
            ``(3) Agricultural operation.--Eligible land shall include all
        acres of an agricultural operation of a producer, whether or not
        contiguous, that are under the effective control of the producer at
        the time the producer enters into a stewardship contract, and is
        operated by the producer with equipment, labor, management, and
        production or cultivation practices that are substantially separate
        from other agricultural operations, as determined by the Secretary.
        ``(c) Exclusions.--
            ``(1) Land enrolled in other conservation programs.--Subject to
        paragraph (2), the following land is not be eligible for enrollment
        in the program:
                ``(A) Land enrolled in the conservation reserve program.
                ``(B) Land enrolled in the wetlands reserve program.
                ``(C) Land enrolled in the grassland reserve program.
            ``(2) Conversion to cropland.--Land used for crop production
        after the date of enactment of the Food, Conservation, and Energy
        Act of 2008 that had not been planted, considered to be planted, or
        devoted to crop production for at least 4 of the 6 years preceding
        that date shall not be the basis for any payment under the program,
        unless the land does not meet the requirement because--
                ``(A) the land had previously been enrolled in the
            conservation reserve program;
                ``(B) the land has been maintained using long-term crop
            rotation practices, as determined by the Secretary; or
                ``(C) the land is incidental land needed for efficient
            operation of the farm or ranch, as determined by the Secretary.
    ``SEC. 1238F. STEWARDSHIP CONTRACTS.
        ``(a) Submission of Contract Offers.--To be eligible to participate
    in the conservation stewardship program, a producer shall submit to the
    Secretary for approval a contract offer that--
            ``(1) demonstrates to the satisfaction of the Secretary that
        the producer, at the time of the contract offer, is meeting the
        stewardship threshold for at least one resource concern; and
            ``(2) would, at a minimum, meet or exceed the stewardship
        threshold for at least 1 priority resource concern by the end of
        the stewardship contract by--
                ``(A) installing and adopting additional conservation
            activities; and
                ``(B) improving, maintaining, and managing conservation
            activities in place at the operation of the producer at the
            time the contract offer is accepted by the Secretary.
        ``(b) Evaluation of Contract Offers.--
            ``(1) Ranking of applications.--In evaluating contract offers
        made by producers to enter into contracts under the program, the
        Secretary shall rank applications based on--
                ``(A) the level of conservation treatment on all applicable
            priority resource concerns at the time of application, based to
            the maximum extent practicable on conservation measurement
            tools;
                ``(B) the degree to which the proposed conservation
            treatment on applicable priority resource concerns effectively
            increases conservation performance, based to the maximum extent
            possible on conservation measurement tools;
                ``(C) the number of applicable priority resource concerns
            proposed to be treated to meet or exceed the stewardship
            threshold by the end of the contract;
                ``(D) the extent to which other resource concerns, in
            addition to priority resource concerns, will be addressed to
            meet or exceed the stewardship threshold by the end of the
            contract period; and
                ``(E) the extent to which the actual and anticipated
            environmental benefits from the contract are provided at the
            least cost relative to other similarly beneficial contract
            offers.
            ``(2) Prohibition.--The Secretary may not assign a higher
        priority to any application because the applicant is willing to
        accept a lower payment than the applicant would otherwise be
        eligible to receive.
            ``(3) Additional criteria.--The Secretary may develop and use
        such additional criteria for evaluating applications to enroll in
        the program that the Secretary determines are necessary to ensure
        that national, State, and local conservation priorities are
        effectively addressed.
        ``(c) Entering Into Contracts.--After a determination that a
    producer is eligible for the program under subsection (a), and a
    determination that the contract offer ranks sufficiently high under the
    evaluation criteria under subsection (b), the Secretary shall enter
    into a conservation stewardship contract with the producer to enroll
    the land to be covered by the contract.
        ``(d) Contract Provisions.--
            ``(1) Term.--A conservation stewardship contract shall be for a
        term of 5 years.
            ``(2) Provisions.--The conservation stewardship contract of a
        producer shall--
                ``(A) state the amount of the payment the Secretary agrees
            to make to the producer for each year of the conservation
            stewardship contract under section 1238G(e);
                ``(B) require the producer--
                    ``(i) to implement during the term of the conservation
                stewardship contract the conservation stewardship plan
                approved by the Secretary;
                    ``(ii) to maintain, and make available to the Secretary
                at such times as the Secretary may request, appropriate
                records showing the effective and timely implementation of
                the conservation stewardship contract; and
                    ``(iii) not to engage in any activity during the term
                of the conservation stewardship contract on the eligible
                land covered by the contract that would interfere with the
                purposes of the conservation stewardship contract;
                ``(C) permit all economic uses of the land that--
                    ``(i) maintain the agricultural nature of the land; and
                    ``(ii) are consistent with the conservation purposes of
                the conservation stewardship contract;
                ``(D) include a provision to ensure that a producer shall
            not be considered in violation of the contract for failure to
            comply with the contract due to circumstances beyond the
            control of the producer, including a disaster or related
            condition, as determined by the Secretary; and
                ``(E) include such other provisions as the Secretary
            determines necessary to ensure the purposes of the program are
            achieved.
        ``(e) Contract Renewal.--At the end of an initial conservation
    stewardship contract of a producer, the Secretary may allow the
    producer to renew the contract for one additional five-year period if
    the producer--
            ``(1) demonstrates compliance with the terms of the existing
        contract; and
            ``(2) agrees to adopt new conservation activities, as
        determined by the Secretary.
        ``(f) Modification.--The Secretary may allow a producer to modify a
    stewardship contract if the Secretary determines that the modification
    is consistent with achieving the purposes of the program.
        ``(g) Contract Termination.--
            ``(1) Voluntary termination.--A producer may terminate a
        conservation stewardship contract if the Secretary determines that
        termination would not defeat the purposes of the program.
            ``(2) Involuntary termination.--The Secretary may terminate a
        contract under this subchapter if the Secretary determines that the
        producer violated the contract.
            ``(3) Repayment.--If a contract is terminated, the Secretary
        may, consistent with the purposes of the program--
                ``(A) allow the producer to retain payments already
            received under the contract; or
                ``(B) require repayment, in whole or in part, of payments
            already received and assess liquidated damages.
            ``(4) Change of interest in land subject to a contract.--
                ``(A) In general.--Except as provided in paragraph (B), a
            change in the interest of a producer in land covered by a
            contract under this chapter shall result in the termination of
            the contract with regard to that land.
                ``(B) Transfer of duties and rights.--Subparagraph (A)
            shall not apply if--
                    ``(i) within a reasonable period of time (as determined
                by the Secretary) after the date of the change in the
                interest in land covered by a contract under the program,
                the transferee of the land provides written notice to the
                Secretary that all duties and rights under the contract
                have been transferred to, and assumed by, the transferee;
                and
                    ``(ii) the transferee meets the eligibility
                requirements of the program.
        ``(h) Coordination With Organic Certification.--The Secretary shall
    establish a transparent means by which producers may initiate organic
    certification under the Organic Foods Production Act of 1990 (7 U.S.C.
    6501 et. seq.) while participating in a contract under this subchapter.
        ``(i) On-Farm Research and Demonstration or Pilot Testing.--The
    Secretary may approve a contract offer under this subchapter that
    includes--
            ``(1) on-farm conservation research and demonstration
        activities; and
            ``(2) pilot testing of new technologies or innovative
        conservation practices.
    ``SEC. 1238G. DUTIES OF THE SECRETARY.
        ``(a) In General.--To achieve the conservation goals of a contract
    under the conservation stewardship program, the Secretary shall--
            ``(1) make the program available to eligible producers on a
        continuous enrollment basis with 1 or more ranking periods, one of
        which shall occur in the first quarter of each fiscal year;
            ``(2) identify not less than 3 nor more than 5 priority
        resource concerns in a particular watershed or other appropriate
        region or area within a State; and
            ``(3) develop reliable conservation measurement tools for
        purposes of carrying out the program.
        ``(b) Allocation to States.--The Secretary shall allocate acres to
    States for enrollment, based--
            ``(1) primarily on each State's proportion of eligible acres
        under section 1238E(b)(1) to the total number of eligible acres in
        all States; and
            ``(2) also on consideration of--
                ``(A) the extent and magnitude of the conservation needs
            associated with agricultural production in each State;
                ``(B) the degree to which implementation of the program in
            the State is, or will be, effective in helping producers
            address those needs; and
                ``(C) other considerations to achieve equitable geographic
            distribution of funds, as determined by the Secretary.
        ``(c) Specialty Crop and Organic Producers.--The Secretary shall
    ensure that outreach and technical assistance are available, and
    program specifications are appropriate to enable specialty crop and
    organic producers to participate in the program.
        ``(d) Acreage Enrollment Limitation.--During the period beginning
    on October 1, 2008, and ending on September 30, 2017, the Secretary
    shall, to the maximum extent practicable--
            ``(1) enroll in the program an additional 12,769,000 acres for
        each fiscal year; and
            ``(2) manage the program to achieve a national average rate of
        $18 per acre, which shall include the costs of all financial
        assistance, technical assistance, and any other expenses associated
        with enrollment or participation in the program.
        ``(e) Conservation Stewardship Payments.--
            ``(1) Availability of payments.--The Secretary shall provide a
        payment under the program to compensate the producer for--
                ``(A) installing and adopting additional conservation
            activities; and
                ``(B) improving, maintaining, and managing conservation
            activities in place at the operation of the producer at the
            time the contract offer is accepted by the Secretary.
            ``(2) Payment amount.--The amount of the conservation
        stewardship payment shall be determined by the Secretary and based,
        to the maximum extent practicable, on the following factors:
                ``(A) Costs incurred by the producer associated with
            planning, design, materials, installation, labor, management,
            maintenance, or training.
                ``(B) Income forgone by the producer.
                ``(C) Expected environmental benefits as determined by
            conservation measurement tools.
            ``(3) Exclusions.--A payment to a producer under this
        subsection shall not be provided for--
                ``(A) the design, construction, or maintenance of animal
            waste storage or treatment facilities or associated waste
            transport or transfer devices for animal feeding operations; or
                ``(B) conservation activities for which there is no cost
            incurred or income forgone to the producer.
            ``(4) Timing of payments.--
                ``(A) In general.--The Secretary shall make payments as
            soon as practicable after October 1 of each fiscal year for
            activities carried out in the previous fiscal year.
                ``(B) Additional activities.--The Secretary shall make
            payments to compensate producers for installation of additional
            practices at the time at which the practices are installed and
            adopted.
        ``(f) Supplemental Payments for Resource-Conserving Crop
    Rotations.--
            ``(1) Availability of payments.--The Secretary shall provide
        additional payments to producers that, in participating in the
        program, agree to adopt resource-conserving crop rotations to
        achieve beneficial crop rotations as appropriate for the land of
        the producers.
            ``(2) Beneficial crop rotations.--The Secretary shall determine
        whether a resource-conserving crop rotation is a beneficial crop
        rotation eligible for additional payments under paragraph (1),
        based on whether the resource-conserving crop rotation is designed
        to provide natural resource conservation and production benefits.
            ``(3) Eligibility.--To be eligible to receive a payment
        described in paragraph (1), a producer shall agree to adopt and
        maintain beneficial resource-conserving crop rotations for the term
        of the contract.
            ``(4) Resource-conserving crop rotation.--In this subsection,
        the term `resource-conserving crop rotation' means a crop rotation
        that--
                ``(A) includes at least 1 resource conserving crop (as
            defined by the Secretary);
                ``(B) reduces erosion;
                ``(C) improves soil fertility and tilth;
                ``(D) interrupts pest cycles; and
                ``(E) in applicable areas, reduces depletion of soil
            moisture or otherwise reduces the need for irrigation.
        ``(g) Payment Limitations.--A person or legal entity may not
    receive, directly or indirectly, payments under this subchapter that,
    in the aggregate, exceed $200,000 for all contracts entered into during
    any 5-year period, excluding funding arrangements with federally
    recognized Indian tribes or Alaska Native corporations, regardless of
    the number of contracts entered into under the program by the person or
    entity.
        ``(h) Regulations.--The Secretary shall promulgate regulations
    that--
            ``(1) prescribe such other rules as the Secretary determines to
        be necessary to ensure a fair and reasonable application of the
        limitations established under subsection (g); and
            ``(2) otherwise enable the Secretary to carry out the program.
        ``(i) Data.--The Secretary shall maintain detailed and segmented
    data on contracts and payments under the program to allow for
    quantification of the amount of payments made for--
            ``(1) the installation and adoption of additional conservation
        activities and improvements to conservation activities in place on
        the operation of a producer at the time the conservation
        stewardship offer is accepted by the Secretary;
            ``(2) participation in research, demonstration, and pilot
        projects; and
            ``(3) the development and periodic assessment and evaluation of
        conservation plans developed under this subchapter.''.
        (b) Termination of Conservation Security Program Authority; Effect
    on Existing Contracts.--Section 1238A of the Food Security Act of 1985
    (16 U.S.C. 3838a) is amended by adding at the end the following new
    subsection:
        ``(g) Prohibition on Conservation Security Program Contracts;
    Effect on Existing Contracts.--
            ``(1) Prohibition.--A conservation security contract may not be
        entered into or renewed under this subchapter after September 30,
        2008.
            ``(2) Exception.--This subchapter, and the terms and conditions
        of the conservation security program, shall continue to apply to--
                ``(A) conservation security contracts entered into on or
            before September 30, 2008; and
                ``(B) any conservation security contract entered into after
            that date, but for which the application for the contract was
            received during the 2008 sign-up period.
            ``(3) Effect on payments.--The Secretary shall make payments
        under this subchapter with respect to conservation security
        contracts described in paragraph (2) during the remaining term of
        the contracts.
            ``(4) Regulations.--A contract described in paragraph (2) may
        not be administered under the regulations issued to carry out the
        conservation stewardship program.''.
        (c) Reference to Redesignated Subchapter.--Section 1238A(b)(3)(C)
    of title XII of the Food Security Act of 1985 (16 U.S.C.
    3838a(b)(3)(C)) is amended by striking ``subchapter C'' and inserting
    ``subchapter D''.

             Subtitle E--Farmland Protection and Grassland Reserve

    SEC. 2401. FARMLAND PROTECTION PROGRAM.
        (a) Definitions.--Section 1238H of the Food Security Act of 1985
    (16 U.S.C. 3838h) is amended--
            (1) by striking paragraph (1) and inserting the following new
        paragraph:
            ``(1) Eligible entity.--The term `eligible entity' means--
                ``(A) any agency of any State or local government or an
            Indian tribe (including a farmland protection board or land
            resource council established under State law); or
                ``(B) any organization that--
                    ``(i) is organized for, and at all times since the
                formation of the organization has been operated principally
                for, 1 or more of the conservation purposes specified in
                clause (i), (ii), (iii), or (iv) of section 170(h)(4)(A) of
                the Internal Revenue Code of 1986;
                    ``(ii) is an organization described in section
                501(c)(3) of that Code that is exempt from taxation under
                section 501(a) of that Code; and
                    ``(iii) is--

                        ``(I) described in paragraph (1) or (2) of section
                    509(a) of that Code; or
                        ``(II) described in section 509(a)(3), and is
                    controlled by an organization described in section
                    509(a)(2), of that Code.''; and

            (2) in paragraph (2)--
                (A) in subparagraph (A)--
                    (i) by striking ``that--'' and inserting ``that is
                subject to a pending offer for purchase from an eligible
                entity and--''; and
                    (ii) by striking clauses (i) and (ii) and inserting the
                following new clauses:
                    ``(i) has prime, unique, or other productive soil;
                    ``(ii) contains historical or archaeological resources;
                or
                    ``(iii) the protection of which will further a State or
                local policy consistent with the purposes of the
                program.''; and
                (B) in subparagraph (B)--
                    (i) in clause (iv), by striking ``and'' at the end; and
                    (ii) by striking clause (v) and inserting the following
                new clauses:
                    ``(v) forest land that--

                        ``(I) contributes to the economic viability of an
                    agricultural operation; or
                        ``(II) serves as a buffer to protect an
                    agricultural operation from development; and

                    ``(vi) land that is incidental to land described in
                clauses (i) through (v), if such land is necessary for the
                efficient administration of a conservation easement, as
                determined by the Secretary.''.
        (b) Farmland Protection.--Section 1238I of the Food Security Act of
    1985 (16 U.S.C. 3838i) is amended to read as follows:
    ``SEC. 1238I. FARMLAND PROTECTION PROGRAM.
        ``(a) Establishment.--The Secretary shall establish and carry out a
    farmland protection program under which the Secretary shall facilitate
    and provide funding for the purchase of conservation easements or other
    interests in eligible land.
        ``(b) Purpose.--The purpose of the program is to protect the
    agricultural use and related conservation values of eligible land by
    limiting nonagricultural uses of that land.
        ``(c) Cost-Share Assistance.--
            ``(1) Provision of assistance.--The Secretary shall provide
        cost-share assistance to eligible entities for purchasing a
        conservation easement or other interest in eligible land.
            ``(2) Federal share.--The share of the cost provided by the
        Secretary for purchasing a conservation easement or other interest
        in eligible land shall not exceed 50 percent of the appraised fair
        market value of the conservation easement or other interest in
        eligible land.
            ``(3) Non-federal share.--
                ``(A) Share provided by eligible entity.--The eligible
            entity shall provide a share of the cost of purchasing a
            conservation easement or other interest in eligible land in an
            amount that is not less than 25 percent of the acquisition
            purchase price.
                ``(B) Landowner contribution.--As part of the non-Federal
            share of the cost of purchasing a conservation easement or
            other interest in eligible land, an eligible entity may include
            a charitable donation or qualified conservation contribution
            (as defined by section 170(h) of the Internal Revenue Code of
            1986) from the private landowner from which the conservation
            easement or other interest in land will be purchased.
        ``(d) Determination of Fair Market Value.--Effective on the date of
    enactment of the Food, Conservation, and Energy Act of 2008, the fair
    market value of the conservation easement or other interest in eligible
    land shall be determined on the basis of an appraisal using an industry
    approved method, selected by the eligible entity and approved by the
    Secretary.
        ``(e) Bidding Down Prohibited.--If the Secretary determines that 2
    or more applications for cost-share assistance are comparable in
    achieving the purpose of the program, the Secretary shall not assign a
    higher priority to any 1 of those applications solely on the basis of
    lesser cost to the program.
        ``(f) Condition on Assistance.--
            ``(1) Conservation plan.--Any highly erodible cropland for
        which a conservation easement or other interest is purchased using
        cost-share assistance provided under the program shall be subject
        to a conservation plan that requires, at the option of the
        Secretary, the conversion of the cropland to less intensive uses.
            ``(2) Contingent right of enforcement.--The Secretary shall
        require the inclusion of a contingent right of enforcement for the
        Secretary in the terms of a conservation easement or other interest
        in eligible land that is purchased using cost-share assistance
        provided under the program.
        ``(g) Agreements With Eligible Entities.--
            ``(1) In general.--The Secretary shall enter into agreements
        with eligible entities to stipulate the terms and conditions under
        which the eligible entity is permitted to use cost-share assistance
        provided under subsection (c).
            ``(2) Length of agreements.--An agreement under this subsection
        shall be for a term that is--
                ``(A) in the case of an eligible entity certified under the
            process described in subsection (h), a minimum of five years;
            and
                ``(B) for all other eligible entities, at least three, but
            not more than five years.
            ``(3) Substitution of qualified projects.--An agreement shall
        allow, upon mutual agreement of the parties, substitution of
        qualified projects that are identified at the time of the proposed
        substitution.
            ``(4) Minimum requirements.--An eligible entity shall be
        authorized to use its own terms and conditions, as approved by the
        Secretary, for conservation easements and other purchases of
        interests in land, so long as such terms and conditions--
                ``(A) are consistent with the purposes of the program;
                ``(B) permit effective enforcement of the conservation
            purposes of such easements or other interests; and
                ``(C) include a limit on the impervious surfaces to be
            allowed that is consistent with the agricultural activities to
            be conducted.
            ``(5) Effect of violation.--If a violation occurs of a term or
        condition of an agreement entered into under this subsection--
                ``(A) the agreement shall remain in force; and
                ``(B) the Secretary may require the eligible entity to
            refund all or part of any payments received by the entity under
            the program, with interest on the payments as determined
            appropriate by the Secretary.
        ``(h) Certification of Eligible Entities.--
            ``(1) Certification process.--The Secretary shall establish a
        process under which the Secretary may--
                ``(A) directly certify eligible entities that meet
            established criteria;
                ``(B) enter into long-term agreements with certified
            entities, as authorized by subsection (g)(2)(A); and
                ``(C) accept proposals for cost-share assistance to
            certified entities for the purchase of conservation easements
            or other interests in eligible land throughout the duration of
            such agreements.
            ``(2) Certification criteria.--In order to be certified, an
        eligible entity shall demonstrate to the Secretary that the entity
        will maintain, at a minimum, for the duration of the agreement--
                ``(A) a plan for administering easements that is consistent
            with the purpose of this subchapter;
                ``(B) the capacity and resources to monitor and enforce
            conservation easements or other interests in land; and
                ``(C) policies and procedures to ensure--
                    ``(i) the long-term integrity of conservation easements
                or other interests in eligible land;
                    ``(ii) timely completion of acquisitions of easements
                or other interests in eligible land; and
                    ``(iii) timely and complete evaluation and reporting to
                the Secretary on the use of funds provided by the Secretary
                under the program.
            ``(3) Review and revision.--
                ``(A) Review.--The Secretary shall conduct a review of
            eligible entities certified under paragraph (1) every three
            years to ensure that such entities are meeting the criteria
            established under paragraph (2).
                ``(B) Revocation.--If the Secretary finds that the
            certified entity no longer meets the criteria established under
            paragraph (2), the Secretary may--
                    ``(i) allow the certified entity a specified period of
                time, at a minimum 180 days, in which to take such actions
                as may be necessary to meet the criteria; and
                    ``(ii) revoke the certification of the entity, if after
                the specified period of time, the certified entity does not
                meet the criteria established in paragraph (2).''.
    SEC. 2402. FARM VIABILITY PROGRAM.
        Section 1238J(b) of the Food Security Act of 1985 (16 U.S.C.
    3838j(b)) is amended by striking ``2007'' and inserting ``2012''.
    SEC. 2403. GRASSLAND RESERVE PROGRAM.
        Subchapter D of chapter 2 of subtitle D of title XII of the Food
    Security Act of 1985 (16 U.S.C. 3838n et seq.), as redesignated by
    section 2301(a)(1), is amended to read as follows:

                   ``Subchapter D--Grassland Reserve Program

    ``SEC. 1238N. GRASSLAND RESERVE PROGRAM.
        ``(a) Establishment and Purpose.--The Secretary shall establish a
    grassland reserve program (referred to in this subchapter as the
    `program') for the purpose of assisting owners and operators in
    protecting grazing uses and related conservation values by restoring
    and conserving eligible land through rental contracts, easements, and
    restoration agreements.
        ``(b) Enrollment of Acreage.--
            ``(1) Acreage enrolled.--The Secretary shall enroll an
        additional 1,220,000 acres of eligible land in the program during
        fiscal years 2009 through 2012.
            ``(2) Methods of enrollment.--The Secretary shall enroll
        eligible land in the program through the use of;
                ``(A) a 10-year, 15-year, or 20-year rental contract;
                ``(B) a permanent easement; or
                ``(C) in a State that imposes a maximum duration for
            easements, an easement for the maximum duration allowed under
            the law of that State.
            ``(3) Limitation.--Of the total amount of funds expended under
        the program to acquire rental contracts and easements described in
        paragraph (2), the Secretary shall use, to the extent practicable--
                ``(A) 40 percent for rental contacts; and
                ``(B) 60 percent for easements.
            ``(4) Enrollment of conservation reserve land.--
                ``(A) Priority.--Upon expiration of a contract under
            subchapter B of chapter 1 of this subtitle, the Secretary shall
            give priority for enrollment in the program to land previously
            enrolled in the conservation reserve program if--
                    ``(i) the land is eligible land, as defined in
                subsection (c); and
                    ``(ii) the Secretary determines that the land is of
                high ecological value and under significant threat of
                conversion to uses other than grazing.
                ``(B) Maximum enrollment.--The number of acres of land
            enrolled under the priority described in subparagraph (A) in a
            calendar year shall not exceed 10 percent of the total number
            of acres enrolled in the program in that calendar year.
        ``(c) Eligible Land Defined.--For purposes of the program, the term
    `eligible land' means private or tribal land that--
            ``(1) is grassland, land that contains forbs, or shrubland
        (including improved rangeland and pastureland) for which grazing is
        the predominant use;
            ``(2) is located in an area that has been historically
        dominated by grassland, forbs, or shrubland, and the land--
                ``(A) could provide habitat for animal or plant populations
            of significant ecological value if the land--
                    ``(i) is retained in its current use; or
                    ``(ii) is restored to a natural condition;
                ``(B) contains historical or archaeological resources; or
                ``(C) would address issues raised by State, regional, and
            national conservation priorities; or
            ``(3) is incidental to land described in paragraph (1) or (2),
        if the incidental land is determined by the Secretary to be
        necessary for the efficient administration of a rental contract or
        easement under the program.
    ``SEC. 1238O. DUTIES OF OWNERS AND OPERATORS.
        ``(a) Rental Contracts.--To be eligible to enroll eligible land in
    the program under a rental contract, the owner or operator of the land
    shall agree--
            ``(1) to comply with the terms of the contract and, when
        applicable, a restoration agreement;
            ``(2) to suspend any existing cropland base and allotment
        history for the land under another program administered by the
        Secretary; and
            ``(3) to implement a grazing management plan, as approved by
        the Secretary, which may be modified upon mutual agreement of the
        parties.
        ``(b) Easements.--To be eligible to enroll eligible land in the
    program through an easement, the owner of the land shall agree--
            ``(1) to grant an easement to the Secretary or to an eligible
        entity described in section 1238Q;
            ``(2) to create and record an appropriate deed restriction in
        accordance with applicable State law to reflect the easement;
            ``(3) to provide a written statement of consent to the easement
        signed by persons holding a security interest or any vested
        interest in the land;
            ``(4) to provide proof of unencumbered title to the underlying
        fee interest in the land that is the subject of the easement;
            ``(5) to comply with the terms of the easement and, when
        applicable, a restoration agreement;
            ``(6) to implement a grazing management plan, as approved by
        the Secretary, which may be modified upon mutual agreement of the
        parties; and
            ``(7) to eliminate any existing cropland base and allotment
        history for the land under another program administered by the
        Secretary.
        ``(c) Restoration Agreements.--
            ``(1) When applicable.--To be eligible for cost-share
        assistance to restore eligible land subject to a rental contract or
        an easement under the program, the owner or operator of the land
        shall agree to comply with the terms of a restoration agreement.
            ``(2) Terms and conditions.--The Secretary shall prescribe the
        terms and conditions of a restoration agreement by which eligible
        land that is subject to a rental contract or easement under the
        program shall be restored.
            ``(3) Duties.--The restoration agreement shall describe the
        respective duties of the owner or operator and the Secretary,
        including the Federal share of restoration payments and technical
        assistance.
        ``(d) Terms and Conditions Applicable to Rental Contracts and
    Easements.--
            ``(1) Permissible activities.--The terms and conditions of a
        rental contract or easement under the program shall permit--
                ``(A) common grazing practices, including maintenance and
            necessary cultural practices, on the land in a manner that is
            consistent with maintaining the viability of grassland, forb,
            and shrub species appropriate to that locality;
                ``(B) haying, mowing, or harvesting for seed production,
            subject to appropriate restrictions during the nesting season
            for birds in the local area that are in significant decline or
            are conserved in accordance with Federal or State law, as
            determined by the State Conservationist;
                ``(C) fire presuppression, rehabilitation, and construction
            of fire breaks; and
                ``(D) grazing related activities, such as fencing and
            livestock watering.
            ``(2) Prohibitions.--The terms and conditions of a rental
        contract or easement under the program shall prohibit--
                ``(A) the production of crops (other than hay), fruit
            trees, vineyards, or any other agricultural commodity that is
            inconsistent with maintaining grazing land; and
                ``(B) except as permitted under a restoration plan, the
            conduct of any other activity that would be inconsistent with
            maintaining grazing land enrolled in the program.
            ``(3) Additional terms and conditions.--A rental contract or
        easement under the program shall include such additional provisions
        as the Secretary determines are appropriate to carry out or
        facilitate the purposes and administration of the program.
        ``(e) Violations.--On a violation of the terms or conditions of a
    rental contract, easement, or restoration agreement entered into under
    this section--
            ``(1) the contract or easement shall remain in force; and
            ``(2) the Secretary may require the owner or operator to refund
        all or part of any payments received under the program, with
        interest on the payments as determined appropriate by the
        Secretary.
    ``SEC. 1238P. DUTIES OF SECRETARY.
        ``(a) Evaluation and Ranking of Applications.--
            ``(1) Criteria.--The Secretary shall establish criteria to
        evaluate and rank applications for rental contracts and easements
        under the program .
            ``(2) Considerations.--In establishing the criteria, the
        Secretary shall emphasize support for--
                ``(A) grazing operations;
                ``(B) plant and animal biodiversity; and
                ``(C) grassland, land that contains forbs, and shrubland
            under the greatest threat of conversion to uses other than
            grazing.
        ``(b) Payments.--
            ``(1) In general.--In return for the execution of a rental
        contract or the granting of an easement by an owner or operator
        under the program, the Secretary shall--
                ``(A) make rental contract or easement payments to the
            owner or operator in accordance with paragraphs (2) and (3);
            and
                ``(B) make payments to the owner or operator under a
            restoration agreement for the Federal share of the cost of
            restoration in accordance with paragraph (4).
            ``(2) Rental contract payments.--
                ``(A) Percentage of grazing value of land.--In return for
            the execution of a rental contract by an owner or operator
            under the program, the Secretary shall make annual payments
            during the term of the contract in an amount, subject to
            subparagraph (B), that is not more than 75 percent of the
            grazing value of the land covered by the contract.
                ``(B) Payment limitation.--Payments made under 1 or more
            rental contracts to a person or legal entity, directly or
            indirectly, may not exceed, in the aggregate, $50,000 per year.
            ``(3) Easement payments.--
                ``(A) In general.--Subject to subparagraph (B), in return
            for the granting of an easement by an owner under the program,
            the Secretary shall make easement payments in an amount not to
            exceed the fair market value of the land less the grazing value
            of the land encumbered by the easement.
                ``(B) Method for determination of compensation.--In making
            a determination under subparagraph (A), the Secretary shall pay
            as compensation for a easement acquired under the program the
            lowest of--
                    ``(i) the fair market value of the land encumbered by
                the easement, as determined by the Secretary, using--

                        ``(I) the Uniform Standards of Professional
                    Appraisal Practices; or
                        ``(II) an area-wide market analysis or survey;

                    ``(ii) the amount corresponding to a geographical cap,
                as determined by the Secretary in regulations; or
                    ``(iii) the offer made by the landowner.
                ``(C) Schedule.--Easement payments may be provided in up to
            10 annual payments of equal or unequal amount, as agreed to by
            the Secretary and the owner.
            ``(4) Restoration agreement payments.--
                ``(A) Federal share of restoration.--The Secretary shall
            make payments to an owner or operator under a restoration
            agreement of not more than 50 percent of the costs of carrying
            out measures and practices necessary to restore functions and
            values of that land.
                ``(B) Payment limitation.--Payments made under 1 or more
            restoration agreements to a person or legal entity, directly or
            indirectly, may not exceed, in the aggregate, $50,000 per year.
            ``(5) Payments to others.--If an owner or operator who is
        entitled to a payment under the program dies, becomes incompetent,
        is otherwise unable to receive the payment, or is succeeded by
        another person who renders or completes the required performance,
        the Secretary shall make the payment, in accordance with
        regulations promulgated by the Secretary and without regard to any
        other provision of law, in such manner as the Secretary determines
        is fair and reasonable in light of all the circumstances.
    ``SEC. 1238Q. DELEGATION OF DUTY.
        ``(a) Authority to Delegate.--The Secretary may delegate a duty
    under the program--
            ``(1) by transferring title of ownership to an easement to an
        eligible entity to hold and enforce; or
            ``(2) by entering into a cooperative agreement with an eligible
        entity for the eligible entity to own, write, and enforce an
        easement.
        ``(b) Eligible Entity Defined.--In this section, the term `eligible
    entity' means--
            ``(1) an agency of State or local government or an Indian
        tribe; or
            ``(2) an organization that--
                ``(A) is organized for, and at all times since the
            formation of the organization has been operated principally
            for, one or more of the conservation purposes specified in
            clause (i), (ii), (iii), or (iv) of section 170(h)(4)(A) of the
            Internal Revenue Code of 1986;
                ``(B) is an organization described in section 501(c)(3) of
            that Code that is exempt from taxation under section 501(a) of
            that Code; and
                ``(C) is described in--
                    ``(i) paragraph (1) or (2) of section 509(a) of that
                Code; or
                    ``(ii) in section 509(a)(3) of that Code, and is
                controlled by an organization described in section
                509(a)(2) of that Code.
        ``(c) Transfer of Title of Ownership.--
            ``(1) Transfer.--The Secretary may transfer title of ownership
        to an easement to an eligible entity to hold and enforce, in lieu
        of the Secretary, subject to the right of the Secretary to conduct
        periodic inspections and enforce the easement, if--
                ``(A) the Secretary determines that the transfer will
            promote protection of grassland, land that contains forbs, or
            shrubland;
                ``(B) the owner authorizes the eligible entity to hold or
            enforce the easement; and
                ``(C) the eligible entity agrees to assume the costs
            incurred in administering and enforcing the easement, including
            the costs of restoration or rehabilitation of the land as
            specified by the owner and the eligible entity.
            ``(2) Application.--An eligible entity that seeks to hold and
        enforce an easement shall apply to the Secretary for approval.
            ``(3) Approval by secretary.--The Secretary may approve an
        application described in paragraph (2) if the eligible entity--
                ``(A) has the relevant experience necessary, as appropriate
            for the application, to administer an easement on grassland,
            land that contains forbs, or shrubland;
                ``(B) has a charter that describes a commitment to
            conserving ranchland, agricultural land, or grassland for
            grazing and conservation purposes; and
                ``(C) has the resources necessary to effectuate the
            purposes of the charter.
        ``(d) Cooperative Agreements.--
            ``(1) Authorized; terms and conditions.--The Secretary shall
        establish the terms and conditions of a cooperative agreement under
        which an eligible entity shall use funds provided by the Secretary
        to own, write, and enforce an easement, in lieu of the Secretary.
            ``(2) Minimum requirements.--At a minimum, the cooperative
        agreement shall--
                ``(A) specify the qualification of the eligible entity to
            carry out the entity's responsibilities under the program,
            including acquisition, monitoring, enforcement, and
            implementation of management policies and procedures that
            ensure the long-term integrity of the easement protections;
                ``(B) require the eligible entity to assume the costs
            incurred in administering and enforcing the easement, including
            the costs of restoration or rehabilitation of the land as
            specified by the owner and the eligible entity;
                ``(C) specify the right of the Secretary to conduct
            periodic inspections to verify the eligible entity's
            enforcement of the easement;
                ``(D) subject to subparagraph (E), identify a specific
            project or a range of projects to be funded under the
            agreement;
                ``(E) allow, upon mutual agreement of the parties,
            substitution of qualified projects that are identified at the
            time of substitution;
                ``(F) specify the manner in which the eligible entity will
            evaluate and report the use of funds to the Secretary;
                ``(G) allow the eligible entity flexibility to develop and
            use terms and conditions for easements, if the Secretary finds
            the terms and conditions consistent with the purposes of the
            program and adequate to enable effective enforcement of the
            easements;
                ``(H) if applicable, allow an eligible entity to include a
            charitable donation or qualified conservation contribution (as
            defined by section 170(h) of the Internal Revenue Code of 1986)
            from the landowner from which the easement will be purchased as
            part of the entity's share of the cost to purchase an easement;
            and
                ``(I) provide for a schedule of payments to an eligible
            entity, as agreed to by the Secretary and the eligible entity.
            ``(3) Cost sharing.--
                ``(A) In general.--As part of a cooperative agreement with
            an eligible entity under this subsection, the Secretary may
            provide a share of the purchase price of an easement under the
            program.
                ``(B) Minimum share by eligible entity.--The eligible
            entity shall be required to provide a share of the purchase
            price at least equivalent to that provided by the Secretary.
                ``(C) Priority.--The Secretary may accord a higher priority
            to proposals from eligible entities that leverage a greater
            share of the purchase price of the easement.
            ``(4) Violation.--If an eligible entity violates the terms or
        conditions of a cooperative agreement entered into under this
        subsection--
                ``(A) the cooperative agreement shall remain in force; and
                ``(B) the Secretary may require the eligible entity to
            refund all or part of any payments received by the eligible
            entity under the program, with interest on the payments as
            determined appropriate by the Secretary.
        ``(e) Protection of Federal Investment.--When delegating a duty
    under this section, the Secretary shall ensure that the terms of an
    easement include a contingent right of enforcement for the
    Department.''.

              Subtitle F--Environmental Quality Incentives Program

    SEC. 2501. PURPOSES OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.
        (a) Revised Purposes.--Section 1240 of the Food Security Act of
    1985 (16 U.S.C. 3839aa) is amended--
            (1) in the matter preceding paragraph (1), by inserting ``,
        forest management,'' after ``agricultural production''; and
            (2) by striking paragraphs (3) and (4) and inserting the
        following new paragraphs:
            ``(3) providing flexible assistance to producers to install and
        maintain conservation practices that sustain food and fiber
        production while--
                ``(A) enhancing soil, water, and related natural resources,
            including grazing land, forestland, wetland, and wildlife; and
                ``(B) conserving energy;
            ``(4) assisting producers to make beneficial, cost effective
        changes to production systems (including conservation practices
        related to organic production), grazing management, fuels
        management, forest management, nutrient management associated with
        livestock, pest or irrigation management, or other practices on
        agricultural and forested land; and''.
        (b) Technical Correction.--The Food Security Act of 1985 is amended
    by inserting immediately before section 1240 (16 U.S.C. 3839aa) the
    following:

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

    SEC. 2502. DEFINITIONS.
        Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa-1)
    is amended to read as follows:
    ``SEC. 1240A. DEFINITIONS.
        ``In this chapter:
            ``(1) Eligible land.--
                ``(A) In general.--The term `eligible land' means land on
            which agricultural commodities, livestock, or forest-related
            products are produced.
                ``(B) Inclusions.--The term `eligible land' includes the
            following:
                    ``(i) Cropland.
                    ``(ii) Grassland.
                    ``(iii) Rangeland.
                    ``(iv) Pasture land.
                    ``(v) Nonindustrial private forest land.
                    ``(vi) Other agricultural land (including cropped
                woodland, marshes, and agricultural land used for the
                production of livestock) on which resource concerns related
                to agricultural production could be addressed through a
                contract under the program, as determined by the Secretary.
            ``(2) National organic program.--The term `national organic
        program' means the national organic program established under the
        Organic Foods Production Act of 1990 (7 U.S.C. 6501 et. seq.).
            ``(3) Organic system plan.--The term `organic system plan'
        means an organic plan approved under the national organic program.
            ``(4) Payment.--The term `payment' means financial assistance
        provided to a producer for performing practices under this chapter,
        including compensation for--
                ``(A) incurred costs associated with planning, design,
            materials, equipment, installation, labor, management,
            maintenance, or training; and
                ``(B) income forgone by the producer.
            ``(5) Practice.--The term `practice' means 1 or more
        improvements and conservation activities that are consistent with
        the purposes of the program under this chapter, as determined by
        the Secretary, including--
                ``(A) improvements to eligible land of the producer,
            including--
                    ``(i) structural practices;
                    ``(ii) land management practices;
                    ``(iii) vegetative practices;
                    ``(iv) forest management; and
                    ``(v) other practices that the Secretary determines
                would further the purposes of the program; and
                ``(B) conservation activities involving the development of
            plans appropriate for the eligible land of the producer,
            including--
                    ``(i) comprehensive nutrient management planning; and
                    ``(ii) other plans that the Secretary determines would
                further the purposes of the program under this chapter.
            ``(6) Program.--The term `program' means the environmental
        quality incentives program established by this chapter.''.
    SEC. 2503. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY
    INCENTIVES PROGRAM.
        Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa-2)
    is amended to read as follows:
    ``SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION.
        ``(a) Establishment.--During each of the 2002 through 2012 fiscal
    years, the Secretary shall provide payments to producers that enter
    into contracts with the Secretary under the program.
        ``(b) Practices and Term.--
            ``(1) Practices.--A contract under the program may apply to the
        performance of one or more practices.
            ``(2) Term.--A contract under the program shall have a term
        that--
                ``(A) at a minimum, is equal to the period beginning on the
            date on which the contract is entered into and ending on the
            date that is one year after the date on which all practices
            under the contract have been implemented; but
                ``(B) not to exceed 10 years.
        ``(c) Bidding Down.--If the Secretary determines that the
    environmental values of two or more applications for payments are
    comparable, the Secretary shall not assign a higher priority to the
    application only because it would present the least cost to the
    program.
        ``(d) Payments.--
            ``(1) Availability of payments.--Payments are provided to a
        producer to implement one or more practices under the program.
            ``(2) Limitation on payment amounts.--A payment to a producer
        for performing a practice may not exceed, as determined by the
        Secretary--
                ``(A) 75 percent of the costs associated with planning,
            design, materials, equipment, installation, labor, management,
            maintenance, or training;
                ``(B) 100 percent of income foregone by the producer; or
                ``(C) in the case of a practice consisting of elements
            covered under subparagraphs (A) and (B)--
                    ``(i) 75 percent of the costs incurred for those
                elements covered under subparagraph (A); and
                    ``(ii) 100 percent of income foregone for those
                elements covered under subparagraph (B).
            ``(3) Special rule involving payments for foregone income.--In
        determining the amount and rate of payments under paragraph (2)(B),
        the Secretary may accord great significance to a practice that, as
        determined by the Secretary, promotes--
                ``(A) residue management;
                ``(B) nutrient management;
                ``(C) air quality management;
                ``(D) invasive species management;
                ``(E) pollinator habitat;
                ``(F) animal carcass management technology; or
                ``(G) pest management.
            ``(4) Increased payments for certain producers.--
                ``(A) In general.--Notwithstanding paragraph (2), in the
            case of a producer that is a limited resource, socially
            disadvantaged farmer or rancher or a beginning farmer or
            rancher, the Secretary shall increase the amount that would
            otherwise be provided to a producer under this subsection--
                    ``(i) to not more than 90 percent of the costs
                associated with planning, design, materials, equipment,
                installation, labor, management, maintenance, or training;
                and
                    ``(ii) to not less than 25 percent above the otherwise
                applicable rate.
                ``(B) Advance payments.--Not more than 30 percent of the
            amount determined under subparagraph (A) may be provided in
            advance for the purpose of purchasing materials or contracting.
            ``(5) Financial assistance from other sources.--Except as
        provided in paragraph (6), any payments received by a producer from
        a State or private organization or person for the implementation of
        one or more practices on eligible land of the producer shall be in
        addition to the payments provided to the producer under this
        subsection.
            ``(6) Other payments.--A producer shall not be eligible for
        payments for practices on eligible land under the program if the
        producer receives payments or other benefits for the same practice
        on the same land under another program under this subtitle.
        ``(e) Modification or Termination of Contracts.--
            ``(1) Voluntary modification or termination.--The Secretary may
        modify or terminate a contract entered into with a producer under
        the program if--
                ``(A) the producer agrees to the modification or
            termination; and
                ``(B) the Secretary determines that the modification or
            termination is in the public interest.
            ``(2) Involuntary termination.--The Secretary may terminate a
        contract under the program if the Secretary determines that the
        producer violated the contract.
        ``(f) Allocation of Funding.--For each of fiscal years 2002 through
    2012, 60 percent of the funds made available for payments under the
    program shall be targeted at practices relating to livestock
    production.
        ``(g) Funding for Federally Recognized Native American Indian
    Tribes and Alaska Native Corporations.--The Secretary may enter into
    alternative funding arrangements with federally recognized Native
    American Indian Tribes and Alaska Native Corporations (including their
    affiliated membership organizations) if the Secretary determines that
    the goals and objectives of the program will be met by such
    arrangements, and that statutory limitations regarding contracts with
    individual producers will not be exceeded by any Tribal or Native
    Corporation member.
        ``(h) Water Conservation or Irrigation Efficiency Practice.--
            ``(1) Availability of payments.--The Secretary may provide
        payments under this subsection to a producer for a water
        conservation or irrigation practice.
            ``(2) Priority.--In providing payments to a producer for a
        water conservation or irrigation practice, the Secretary shall give
        priority to applications in which--
                ``(A) consistent with the law of the State in which the
            eligible land of the producer is located, there is a reduction
            in water use in the operation of the producer; or
                ``(B) the producer agrees not to use any associated water
            savings to bring new land, other than incidental land needed
            for efficient operations, under irrigated production, unless
            the producer is participating in a watershed-wide project that
            will effectively conserve water, as determined by the
            Secretary.
        ``(i) Payments for Conservation Practices Related to Organic
    Production.--
            ``(1) Payments authorized.--The Secretary shall provide
        payments under this subsection for conservation practices, on some
        or all of the operations of a producer, related--
                ``(A) to organic production; and
                ``(B) to the transition to organic production.
            ``(2) Eligibility requirements.--As a condition for receiving
        payments under this subsection, a producer shall agree--
                ``(A) to develop and carry out an organic system plan; or
                ``(B) to develop and implement conservation practices for
            certified organic production that are consistent with an
            organic system plan and the purposes of this chapter.
            ``(3) Payment limitations.--Payments under this subsection to a
        person or legal entity, directly or indirectly, may not exceed, in
        the aggregate, $20,000 per year or $80,000 during any 6-year
        period. In applying these limitations, the Secretary shall not take
        into account payments received for technical assistance.
            ``(4) Exclusion of certain organic certification costs.--
        Payments may not be made under this subsection to cover the costs
        associated with organic certification that are eligible for cost-
        share payments under section 10606 of the Farm Security and Rural
        Investment Act of 2002 (7 U.S.C. 6523).
            ``(5) Termination of contracts.--The Secretary may cancel or
        otherwise nullify a contract to provide payments under this
        subsection if the Secretary determines that the producer--
                ``(A) is not pursuing organic certification; or
                ``(B) is not in compliance with the Organic Foods
            Production Act of 1990 (7 U.S.C. 6501 et seq).''.
    SEC. 2504. EVALUATION OF APPLICATIONS.
        Section 1240C of the Food Security Act of 1985 (16 U.S.C. 3839aa-3)
    is amended to read as follows:
    ``SEC. 1240C. EVALUATION OF APPLICATIONS.
        ``(a) Evaluation Criteria.--The Secretary shall develop criteria
    for evaluating applications that will ensure that national, State, and
    local conservation priorities are effectively addressed.
        ``(b) Prioritization of Applications.--In evaluating applications
    under this chapter, the Secretary shall prioritize applications--
            ``(1) based on their overall level of cost-effectiveness to
        ensure that the conservation practices and approaches proposed are
        the most efficient means of achieving the anticipated environmental
        benefits of the project;
            ``(2) based on how effectively and comprehensively the project
        addresses the designated resource concern or resource concerns;
            ``(3) that best fulfill the purpose of the environmental
        quality incentives program specified in section 1240(1); and
            ``(4) that improve conservation practices or systems in place
        on the operation at the time the contract offer is accepted or that
        will complete a conservation system.
        ``(c) Grouping of Applications.--To the greatest extent
    practicable, the Secretary shall group applications of similar crop or
    livestock operations for evaluation purposes or otherwise evaluate
    applications relative to other applications for similar farming
    operations.''.
    SEC. 2505. DUTIES OF PRODUCERS UNDER ENVIRONMENTAL QUALITY INCENTIVES
    PROGRAM.
        Section 1240D of the Food Security Act of 1985 (16 U.S.C. 3839aa-4)
    is amended--
            (1) in the matter preceding paragraph (1), by striking
        ``technical assistance, cost-share payments, or incentive'';
            (2) in paragraph (2), by striking ``farm or ranch'' and
        inserting ``farm, ranch, or forest land''; and
            (3) in paragraph (4), by striking ``cost-share payments and
        incentive''.
    SEC. 2506. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.
        (a) Plan of Operations.--Section 1240E(a) of the Food Security Act
    of 1985 (16 U.S.C. 3839aa-5(a)) is amended--
            (1) in the subsection heading, by striking ``In General'' and
        inserting ``Plan of Operations'';
            (2) in matter preceding paragraph (1), by striking ``cost-share
        payments or incentive'';
            (3) in paragraph (2), by striking ``and'' after the semicolon
        at the end;
            (4) in paragraph (3), by striking the period at the end and
        inserting ``; and''; and
            (5) by adding at the end the following new paragraph:
            ``(4) in the case of forest land, is consistent with the
        provisions of a forest management plan that is approved by the
        Secretary, which may include--
                ``(A) a forest stewardship plan described in section 5 of
            the Cooperative Forestry Assistance Act of 1978 (16 U.S.C.
            2103a);
                ``(B) another practice plan approved by the State forester;
            or
                ``(C) another plan determined appropriate by the
            Secretary.''.
        (b) Avoidance of Duplication.--Subsection (b) of section 1240E of
    the Food Security Act of 1985 (16 U.S.C. 3839aa-5) is amended to read
    as follows:
        ``(b) Avoidance of Duplication.--The Secretary shall--
            ``(1) consider a plan developed in order to acquire a permit
        under a water or air quality regulatory program as the equivalent
        of a plan of operations under subsection (a), if the plan contains
        elements equivalent to those elements required by a plan of
        operations; and
            ``(2) to the maximum extent practicable, eliminate duplication
        of planning activities under the program under this chapter and
        comparable conservation programs.''.
    SEC. 2507. DUTIES OF THE SECRETARY.
        Section 1240F(1) of the Food Security Act of 1985 (16 U.S.C.
    3839aa-6(1)) is amended by striking ``cost-share payments or
    incentive''.
    SEC. 2508. LIMITATION ON ENVIRONMENTAL QUALITY INCENTIVES PROGRAM
    PAYMENTS.
        Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa-7)
    is amended--
            (1) by striking ``An individual or entity'' and inserting ``(a)
        limitation.--Subject to subsection (b), a person or legal entity'';
            (2) by striking ``$450,000'' and inserting ``$300,000'';
            (3) by striking ``the individual'' both places it appears and
        inserting ``the person''; and
            (4) by adding at the end the following new subsection:
        ``(b) Waiver Authority.--In the case of contracts under this
    chapter for projects of special environmental significance (including
    projects involving methane digesters), as determined by the Secretary,
    the Secretary may--
            ``(1) waive the limitation otherwise applicable under
        subsection (a); and
            ``(2) raise the limitation to not more than $450,000 during any
        six-year period.''.
    SEC. 2509. CONSERVATION INNOVATION GRANTS AND PAYMENTS.
        Section 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa-8)
    is amended to read as follows:
    ``SEC. 1240H. CONSERVATION INNOVATION GRANTS AND PAYMENTS.
        ``(a) Competitive Grants for Innovative Conservation Approaches.--
            ``(1) Grants.--Out of the funds made available to carry out
        this chapter, the Secretary may pay the cost of competitive grants
        that are intended to stimulate innovative approaches to leveraging
        the Federal investment in environmental enhancement and protection,
        in conjunction with agricultural production or forest resource
        management, through the program.
            ``(2) Use.--The Secretary may provide grants under this
        subsection to governmental and non-governmental organizations and
        persons, on a competitive basis, to carry out projects that--
                ``(A) involve producers who are eligible for payments or
            technical assistance under the program;
                ``(B) leverage Federal funds made available to carry out
            the program under this chapter with matching funds provided by
            State and local governments and private organizations to
            promote environmental enhancement and protection in conjunction
            with agricultural production;
                ``(C) ensure efficient and effective transfer of innovative
            technologies and approaches demonstrated through projects that
            receive funding under this section, such as market systems for
            pollution reduction and practices for the storage of carbon in
            soil; and
                ``(D) provide environmental and resource conservation
            benefits through increased participation by producers of
            specialty crops.
        ``(b) Air Quality Concerns From Agricultural Operations.--
            ``(1) Implementation assistance.--The Secretary shall provide
        payments under this subsection to producers to implement practices
        to address air quality concerns from agricultural operations and to
        meet Federal, State, and local regulatory requirements. The funds
        shall be made available on the basis of air quality concerns in a
        State and shall be used to provide payments to producers that are
        cost effective and reflect innovative technologies.
            ``(2) Funding.--Of the funds made available to carry out this
        chapter, the Secretary shall carry out this subsection using
        $37,500,000 for each of fiscal years 2009 through 2012.''.
    SEC. 2510. AGRICULTURAL WATER ENHANCEMENT PROGRAM.
        Section 1240I of the Food Security Act of 1985 (16 U.S.C. 3839aa-9)
    is amended to read as follows:
    ``SEC. 1240I. AGRICULTURAL WATER ENHANCEMENT PROGRAM.
        ``(a) Definitions.--In this section:
            ``(1) Agricultural water enhancement activity.--The term
        `agricultural water enhancement activity' includes the following
        activities carried out with respect to agricultural land:
                ``(A) Water quality or water conservation plan development,
            including resource condition assessment and modeling.
                ``(B) Water conservation restoration or enhancement
            projects, including conversion to the production of less water-
            intensive agricultural commodities or dryland farming.
                ``(C) Water quality or quantity restoration or enhancement
            projects.
                ``(D) Irrigation system improvement and irrigation
            efficiency enhancement.
                ``(E) Activities designed to mitigate the effects of
            drought.
                ``(F) Related activities that the Secretary determines will
            help achieve water quality or water conservation benefits on
            agricultural land.
            ``(2) Partner.--The term `partner' means an entity that enters
        into a partnership agreement with the Secretary to carry out
        agricultural water enhancement activities on a regional basis,
        including--
                ``(A) an agricultural or silvicultural producer association
            or other group of such producers;
                ``(B) a State or unit of local government; or
                ``(C) a federally recognized Indian tribe.
            ``(3) Partnership agreement.--The term `partnership agreement'
        means an agreement between the Secretary and a partner.
            ``(4) Program.--The term `program' means the agricultural water
        enhancement program established under subsection (b).
        ``(b) Establishment of Program.--Beginning in fiscal year 2009, the
    Secretary shall carry out, in accordance with this section and using
    such procedures as the Secretary determines to be appropriate, an
    agricultural water enhancement program as part of the environmental
    quality incentives program to promote ground and surface water
    conservation and improve water quality on agricultural lands--
            ``(1) by entering into contracts with, and making payments to,
        producers to carry out agricultural water enhancement activities;
        or
            ``(2) by entering into partnership agreements with partners, in
        accordance with subsection (c), on a regional level to benefit
        working agricultural land.
        ``(c) Partnership Agreements.--
            ``(1) Agreements authorized.--The Secretary may enter into
        partnership agreements to meet the objectives of the program
        described in subsection (b).
            ``(2) Applications.--An application to the Secretary to enter
        into a partnership agreement under paragraph (1) shall include the
        following:
                ``(A) A description of the geographical area to be covered
            by the partnership agreement.
                ``(B) A description of the agricultural water quality or
            water conservation issues to be addressed by the partnership
            agreement.
                ``(C) A description of the agricultural water enhancement
            objectives to be achieved through the partnership.
                ``(D) A description of the partners collaborating to
            achieve the project objectives and the roles, responsibilities,
            and capabilities of each partner.
                ``(E) A description of the program resources, including
            payments the Secretary is requested to make.
                ``(F) Such other such elements as the Secretary considers
            necessary to adequately evaluate and competitively select
            applications for partnership agreements.
            ``(3) Duties of partners.--A partner under a partnership
        agreement shall--
                ``(A) identify producers participating in the project and
            act on their behalf in applying for the program;
                ``(B) leverage funds provided by the Secretary with
            additional funds to help achieve project objectives;
                ``(C) conduct monitoring and evaluation of project effects;
            and
                ``(D) at the conclusion of the project, report to the
            Secretary on project results.
        ``(d) Agricultural Water Enhancement Activities by Producers.--The
    Secretary shall select agricultural water enhancement activities
    proposed by producers according to applicable requirements under the
    environmental quality incentives program.
        ``(e) Agricultural Water Enhancement Activities by Partners.--
            ``(1) Competitive process.--The Secretary shall conduct a
        competitive process to select partners. In carrying out the
        process, the Secretary shall make public the criteria used in
        evaluating applications.
            ``(2) Authority to give priority to certain proposals.--The
        Secretary may give a higher priority to proposals from partners
        that--
                ``(A) include high percentages of agricultural land and
            producers in a region or other appropriate area;
                ``(B) result in high levels of applied agricultural water
            quality and water conservation activities;
                ``(C) significantly enhance agricultural activity;
                ``(D) allow for monitoring and evaluation; and
                ``(E) assist producers in meeting a regulatory requirement
            that reduces the economic scope of the producer's operation.
            ``(3) Priority to proposals from states with water quantity
        concerns.--The Secretary shall give a higher priority to proposals
        from partners that--
                ``(A) include the conversion of agricultural land from
            irrigated farming to dryland farming;
                ``(B) leverage Federal funds provided under the program
            with funds provided by partners; and
                ``(C) assist producers in States with water quantity
            concerns, as determined by the Secretary.
            ``(4) Administration.--In carrying out this subsection, the
        Secretary shall--
                ``(A) accept qualified applications--
                    ``(i) directly from partners applying on behalf of
                producers; or
                    ``(ii) from producers applying through a partner as
                part of a regional agricultural water enhancement project;
                and
                ``(B) ensure that resources made available for regional
            agricultural water enhancement activities are delivered in
            accordance with applicable program rules.
        ``(f) Areas Experiencing Exceptional Drought.--Notwithstanding the
    purposes described in section 1240, the Secretary shall consider as an
    eligible agricultural water enhancement activity the use of a water
    impoundment to capture surface water runoff on agricultural land if the
    agricultural water enhancement activity--
            ``(1) is located in an area that is experiencing or has
        experienced exceptional drought conditions during the previous two
        calendar years; and
            ``(2) will capture surface water runoff through the
        construction, improvement, or maintenance of irrigation ponds or
        small, on-farm reservoirs.
        ``(g) Waiver Authority.--To assist in the implementation of
    agricultural water enhancement activities under the program, the
    Secretary shall waive the applicability of the limitation in section
    1001D(b)(2)(B) of this Act for participating producers if the Secretary
    determines that the waiver is necessary to fulfill the objectives of
    the program.
        ``(h) Payments Under Program.--
            ``(1) In general.--The Secretary shall provide appropriate
        payments to producers participating in agricultural water
        enhancement activities in an amount determined by the secretary to
        be necessary to achieve the purposes of the program described in
        subsection (b).
            ``(2) Payments to producers in states with water quantity
        concerns.--The Secretary shall provide payments for a period of
        five years to producers participating in agricultural water
        enhancement activities under proposals described in subsection
        (e)(3) in an amount sufficient to encourage producers to convert
        from irrigated farming to dryland farming.
        ``(i) Consistency With State Law.--Any agricultural water
    enhancement activity conducted under the program shall be conducted in
    a manner consistent with State water law.
        ``(j) Funding.--
            ``(1) Availability of funds.--In addition to funds made
        available to carry out this chapter under section 1241(a), the
        Secretary shall carry out the program using, of the funds of the
        Commodity Credit Corporation--
                ``(A) $73,000,000 for each of fiscal years 2009 and 2010;
                ``(B) $74,000,000 for fiscal year 2011; and
                ``(C) $60,000,000 for fiscal year 2012 and each fiscal year
            thereafter.
            ``(2) Limitation on administrative expenses.--None of the funds
        made available for regional agricultural water conservation
        activities under the program may be used to pay for the
        administrative expenses of partners.''.

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

    SEC. 2601. CONSERVATION OF PRIVATE GRAZING LAND.
        Section 1240M(e) of the Food Security Act of 1985 (16 U.S.C.
    3839bb(e)) is amended by striking ``2007'' and inserting ``2012''.
    SEC. 2602. WILDLIFE HABITAT INCENTIVE PROGRAM.
        (a) Eligibility.--Section 1240N of the Food Security Act of 1985
    (16 U.S.C. 3839bb-1) is amended--
            (1) in subsection (a), by inserting before the period at the
        end the following: ``for the development of wildlife habitat on
        private agricultural land, nonindustrial private forest land, and
        tribal lands''.
            (2) in subsection (b)(1), by striking ``landowners'' and
        inserting ``owners of lands referred to in subsection (a)''.
        (b) Inclusion of Pivot Corners and Irregular Areas.--Section
    1240N(b)(1)(E) of the Food Security Act of 1985 (16 U.S.C. 3839bb-
    1(b)(1)(E)) is amended by inserting before the period at the end the
    following: ``, including habitat developed on pivot corners and
    irregular areas''.
        (c) Cost Share for Long-Term Agreements.--Section 1240N(b)(2)(B) of
    the Food Security Act of 1985 (16 U.S.C. 3839bb-1(b)(2)(B)) is amended
    by striking ``15 percent'' and inserting ``25 percent''.
        (d) Priority for Certain Conservation Initiatives; Payment
    Limitation.--Section 1240N of the Food Security Act of 1985 (16 U.S.C.
    3839bb-1) is amended by adding at the end the following new
    subsections:
        ``(d) Priority for Certain Conservation Initiatives.--In carrying
    out this section, the Secretary may give priority to projects that
    would address issues raised by State, regional, and national
    conservation initiatives.
        ``(e) Payment Limitation.--Payments made to a person or legal
    entity, directly or indirectly, under the program may not exceed, in
    the aggregate, $50,000 per year.''.
    SEC. 2603. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.
        Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C.
    3839bb-2(b)) is amended by striking ``$5,000,000 for each of fiscal
    years 2002 through 2007'' and inserting ``$20,000,000 for each of
    fiscal years 2008 through 2012''.
    SEC. 2604. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND SEDIMENT
    CONTROL.
        Section 1240P of the Food Security Act of 1985 (16 U.S.C. 3839bb-3)
    is amended to read as follows:
    ``SEC. 1240P. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND SEDIMENT
    CONTROL.
        ``(a) Program Authorized.--The Secretary may carry out the Great
    Lakes basin program for soil erosion and sediment control (referred to
    in this section as the `program'), including providing assistance to
    implement the recommendations of the Great Lakes Regional Collaboration
    Strategy to Restore and Protect the Great Lakes.
        ``(b) Consultation and Cooperation.--The Secretary shall carry out
    the program in consultation with the Great Lakes Commission created by
    Article IV of the Great Lakes Basin Compact (82 Stat. 415) and in
    cooperation with the Administrator of the Environmental Protection
    Agency and the Secretary of the Army.
        ``(c) Assistance.--In carrying out the program, the Secretary may--
            ``(1) provide project demonstration grants, provide technical
        assistance, and carry out information and educational programs to
        improve water quality in the Great Lakes basin by reducing soil
        erosion and improving sediment control; and
            ``(2) establish a priority for projects and activities that--
                ``(A) directly reduce soil erosion or improve sediment
            control;
                ``(B) reduce soil loss in degraded rural watersheds; or
                ``(C) improve water quality for downstream watersheds.
        ``(d) Authorization of Appropriations.--There is authorized to be
    appropriated to the Secretary to carry out the program $5,000,000 for
    each of fiscal years 2008 through 2012.''.
    SEC. 2605. CHESAPEAKE BAY WATERSHED PROGRAM.
        Chapter 5 of subtitle D of title XII of the Food Security Act of
    1985 is amended by inserting after section 1240P (16 U.S.C. 3839bb-3)
    the following new section:
    ``SEC. 1240Q. CHESAPEAKE BAY WATERSHED.
        ``(a) Chesapeake Bay Watershed Defined.--In this section, the term
    `Chesapeake Bay watershed' means all tributaries, backwaters, and side
    channels, including their watersheds, draining into the Chesapeake Bay.
        ``(b) Establishment and Purpose.--The Secretary shall assist
    producers in implementing conservation activities on agricultural lands
    in the Chesapeake Bay watershed for the purposes of--
            ``(1) improving water quality and quantity in the Chesapeake
        Bay watershed; and
            ``(2) restoring, enhancing, and preserving soil, air, and
        related resources in the Chesapeake Bay watershed.
        ``(c) Conservation Activities.--The Secretary shall deliver the
    funds made available to carry out this section through applicable
    programs under this subtitle to assist producers in enhancing land and
    water resources--
            ``(1) by controlling erosion and reducing sediment and nutrient
        levels in ground and surface water; and
            ``(2) by planning, designing, implementing, and evaluating
        habitat conservation, restoration, and enhancement measures where
        there is significant ecological value if the lands are--
                ``(A) retained in their current use; or
                ``(B) restored to their natural condition.
        ``(d) Agreements.--
            ``(1) In general.--The Secretary shall--
                ``(A) enter into agreements with producers to carry out the
            purposes of this section; and
                ``(B) use the funds made available to carry out this
            section to cover the costs of the program involved with each
            agreement.
            ``(2) Special considerations.--In entering into agreements
        under this subsection, the Secretary shall give special
        consideration to, and begin evaluating, applications with producers
        in the following river basins:
                ``(A) The Susquehanna River.
                ``(B) The Shenandoah River.
                ``(C) The Potomac River (including North and South
            Potomac).
                ``(D) The Patuxent River.
        ``(e) Duties of the Secretary.--In carrying out the purposes in
    this section, the Secretary shall--
            ``(1) where available, use existing plans, models, and
        assessments to assist producers in implementing conservation
        activities; and
            ``(2) proceed expeditiously with the implementation of any
        agreement with a producer that is consistent with State strategies
        for the restoration of the Chesapeake Bay watershed.
        ``(f) Consultation.--The Secretary, in consultation with
    appropriate Federal agencies, shall ensure conservation activities
    carried out under this section complement Federal and State programs,
    including programs that address water quality, in the Chesapeake Bay
    watershed.
        ``(g) Sense of Congress Regarding Chesapeake Bay Executive
    Council.--It is the sense of Congress that the Secretary should be a
    member of the Chesapeake Bay Executive Council, and is authorized to do
    so under section 1(3) of the Soil Conservation and Domestic Allotment
    Act (16 U.S.C. 590a(3)).
        ``(h) Funding.--
            ``(1) Availability.--Of the funds of the Commodity Credit
        Corporation, the Secretary shall use, to the maximum extent
        practicable--
                ``(A) $23,000,000 for fiscal year 2009;
                ``(B) $43,000,000 for fiscal year 2010;
                ``(C) $72,000,000 for fiscal year 2011; and
                ``(D) $50,000,000 for fiscal year 2012.
            ``(2) Duration of availability.--Funds made available under
        paragraph (1) shall remain available until expended.''
    SEC. 2606. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM.
        Chapter 5 of subtitle D of title XII of the Food Security Act of
    1985 (16 U.S.C. 3839bb et seq.) is amended by inserting after section
    1240Q, as added by section 2605, the following new section:
    ``SEC. 1240R. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM.
        ``(a) Establishment.--The Secretary shall establish a voluntary
    public access program under which States and tribal governments may
    apply for grants to encourage owners and operators of privately-held
    farm, ranch, and forest land to voluntarily make that land available
    for access by the public for wildlife-dependent recreation, including
    hunting or fishing under programs administered by the States and tribal
    governments.
        ``(b) Applications.--In submitting applications for a grant under
    the program, a State or tribal government shall describe--
            ``(1) the benefits that the State or tribal government intends
        to achieve by encouraging public access to private farm and ranch
        land for--
                ``(A) hunting and fishing; and
                ``(B) to the maximum extent practicable, other recreational
            purposes; and
            ``(2) the methods that will be used to achieve those benefits.
        ``(c) Priority.--In approving applications and awarding grants
    under the program, the Secretary shall give priority to States and
    tribal governments that propose--
            ``(1) to maximize participation by offering a program the terms
        of which are likely to meet with widespread acceptance among
        landowners;
            ``(2) to ensure that land enrolled under the State or tribal
        government program has appropriate wildlife habitat;
            ``(3) to strengthen wildlife habitat improvement efforts on
        land enrolled in a special conservation reserve enhancement program
        described in section 1234(f)(4) by providing incentives to increase
        public hunting and other recreational access on that land;
            ``(4) to use additional Federal, State, tribal government, or
        private resources in carrying out the program; and
            ``(5) to make available to the public the location of land
        enrolled.
        ``(d) Relationship to Other Laws.--
            ``(1) No preemption.--Nothing in this section preempts a State
        or tribal government law, including any State or tribal government
        liability law.
            ``(2) Effect of inconsistent opening dates for migratory bird
        hunting.--The Secretary shall reduce by 25 percent the amount of a
        grant otherwise determined for a State under the program if the
        opening dates for migratory bird hunting in the State are not
        consistent for residents and non-residents.
        ``(e) Regulations.--The Secretary shall promulgate such regulations
    as are necessary to carry out this section.
        ``(f) Funding.--Of the funds of the Commodity Credit Corporation,
    the Secretary shall use, to the maximum extent practicable, $50,000,000
    for the period of fiscal years 2009 through 2012.''.

        Subtitle H--Funding and Administration of Conservation Programs

    SEC. 2701. FUNDING OF CONSERVATION PROGRAMS UNDER FOOD SECURITY ACT OF
    1985.
        (a) In General.--Section 1241(a) of the Food Security Act of 1985
    (16 U.S.C. 3841(a)) is amended in the matter preceding paragraph (1),
    by striking ``2007'' and inserting ``2012''.
        (b) Conservation Reserve Program.--Paragraph (1) of section 1241(a)
    of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended by
    striking the period at the end and inserting the following: ``,
    including to the maximum extent practicable--
                ``(A) $100,000,000 for the period of fiscal years 2009
            through 2012 to provide cost share payments under paragraph (3)
            of section 1234(b) in connection with thinning activities
            conducted on land described in subparagraph (A)(iii) of such
            paragraph; and
                ``(B) $25,000,000 for the period of fiscal years 2009
            through 2012 to carry out section 1235(f) to facilitate the
            transfer of land subject to contracts from retired or retiring
            owners and operators to beginning farmers or ranchers and
            socially disadvantaged farmers or ranchers.''.
        (c) Conservation Security and Conservation Stewardship Programs.--
    Paragraph (3) of section 1241(a) of the Food Security Act of 1985 (16
    U.S.C. 3841(a)) is amended to read as follows:
            ``(3)(A) Conservation security program.--The conservation
        security program under subchapter A of chapter 2, using such sums
        as are necessary to administer contracts entered into before
        September 30, 2008.
            ``(B) Conservation stewardship program.--The conservation
        stewardship program under subchapter B of chapter 2.''.
        (d) Farmland Protection Program.--Paragraph (4) of section 1241(a)
    of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended to read
    as follows:
            ``(4) The farmland protection program under subchapter C of
        chapter 2, using, to the maximum extent practicable--
                ``(A) $97,000,000 in fiscal year 2008;
                ``(B) $121,000,000 in fiscal year 2009;
                ``(C) $150,000,000 in fiscal year 2010;
                ``(D) $175,000,000 in fiscal year 2011; and
                ``(E) $200,000,000 in fiscal year 2012.''.
        (e) Grassland Reserve Program.--Paragraph (5) of section 1241(a) of
    the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended to read as
    follows:
            ``(5) The grassland reserve program under subchapter D of
        chapter 2.''.
        (f) Environmental Quality Incentives Program.--Paragraph (6) of
    section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is
    amended to read as follows:
            ``(6) The environmental quality incentives program under
        chapter 4, using, to the maximum extent practicable--
                ``(A) $1,200,000,000 in fiscal year 2008;
                ``(B) $1,337,000,000 in fiscal year 2009;
                ``(C) $1,450,000,000 in fiscal year 2010;
                ``(D) $1,588,000,000 in fiscal year 2011; and
                ``(E) $1,750,000,000 in fiscal year 2012.''.
        (g) Wildlife Habitat Incentives Program.--Paragraph (7)(D) of
    section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is
    amended by striking ``2007'' and inserting ``2012''.
    SEC. 2702. AUTHORITY TO ACCEPT CONTRIBUTIONS TO SUPPORT CONSERVATION
    PROGRAMS.
        Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is
    amended by adding at the end the following new subsection:
        ``(e) Acceptance and Use of Contributions.--
            ``(1) Authority to establish contribution accounts.--Subject to
        paragraph (2), the Secretary may establish a sub-account for each
        conservation program administered by the Secretary under subtitle D
        to accept contributions of non-Federal funds to support the
        purposes of the program.
            ``(2) Deposit and use of contributions.--Contributions of non-
        Federal funds received for a conservation program administered by
        the Secretary under subtitle D shall be deposited into the sub-
        account established under this subsection for the program and shall
        be available to the Secretary, without further appropriation and
        until expended, to carry out the program.''.
    SEC. 2703. REGIONAL EQUITY AND FLEXIBILITY.
        (a) Regional Equity and Flexibility.--Section 1241(d) of the Food
    Security Act of 1985 (16 U.S.C. 3841(d)) is amended--
            (1) by striking ``Before April 1'' and inserting the following:
            ``(1) Priority funding to promote equity.--Before April 1'';
            (2) by striking ``$12,000,000'' and inserting ``$15,000,000'';
        and
            (3) by adding at the end the following new paragraph:
            ``(2) Specific funding allocations.--In determining the
        specific funding allocations for States under paragraph (1), the
        Secretary shall consider the respective demand in each State for
        each program covered by such paragraph.''.
        (b) Allocations Review and Update.--Section 1241 of the Food
    Security Act of 1985 (16 U.S.C. 3841) is amended by inserting after
    subsection (e), as added by section 2702, the following new subsection:
        ``(f) Allocations Review and Update.--
            ``(1) Review.--Not later than January 1, 2012, the Secretary
        shall conduct a review of conservation programs and authorities
        under this title that utilize allocation formulas to determine the
        sufficiency of the formulas in accounting for State-level economic
        factors, level of agricultural infrastructure, or related factors
        that affect conservation program costs.
            ``(2) Update.--The Secretary shall improve conservation program
        allocation formulas as necessary to ensure that the formulas
        adequately reflect the costs of carrying out the conservation
        programs.''.
    SEC. 2704. ASSISTANCE TO CERTAIN FARMERS AND RANCHERS TO IMPROVE THEIR
    ACCESS TO CONSERVATION PROGRAMS.
        Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is
    amended by inserting after subsection (f), as added by section 2703(b),
    the following new subsection:
        ``(g) Assistance to Certain Farmers or Ranchers for Conservation
    Access.--
            ``(1) Assistance.--Of the funds made available for each of
        fiscal years 2009 through 2012 to carry out the environmental
        quality incentives program and the acres made available for each of
        such fiscal years to carry out the conservation stewardship
        program, the Secretary shall use, to the maximum extent
        practicable--
                ``(A) 5 percent to assist beginning farmers or ranchers;
            and
                ``(B) 5 percent to assist socially disadvantaged farmers or
            ranchers.
            ``(2) Repooling of funds.--In any fiscal year, amounts not
        obligated under paragraph (1) by a date determined by the Secretary
        shall be available for payments and technical assistance to all
        persons eligible for payments or technical assistance in that
        fiscal year under the environmental quality incentives program.
            ``(3) Repooling of acres.--In any fiscal year, acres not
        obligated under paragraph (1) by a date determined by the Secretary
        shall be available for use in that fiscal year under the
        conservation stewardship program.''.
    SEC. 2705. REPORT REGARDING ENROLLMENTS AND ASSISTANCE UNDER
    CONSERVATION PROGRAMS.
        Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is
    amended by inserting after subsection (g), as added by section 2704,
    the following new subsection:
        ``(h) Report on Program Enrollments and Assistance.--Beginning in
    calendar year 2009, and each year thereafter, the Secretary shall
    submit to the Committee on Agriculture of the House of Representatives
    and the Committee on Agriculture, Nutrition, and Forestry of the Senate
    a semiannual report containing statistics by State related to
    enrollments in conservation programs under this subtitle, as follows:
            ``(1) Payments made under the wetlands reserve program for
        easements valued at $250,000 or greater.
            ``(2) Payments made under the farmland protection program for
        easements in which the Federal share is $250,000 or greater.
            ``(3) Payments made under the grassland reserve program valued
        at $250,000 or greater.
            ``(4) Payments made under the environmental quality incentives
        program for land determined to have special environmental
        significance pursuant to section 1240G(b).
            ``(5) Payments made under the agricultural water enhancement
        program subject to the waiver of adjusted gross income limitations
        pursuant to section 1240I(g).
            ``(6) Waivers granted by the Secretary under section
        1001D(b)(2) of this Act in order to protect environmentally
        sensitive land of special significance.''.
    SEC. 2706. DELIVERY OF CONSERVATION TECHNICAL ASSISTANCE.
        Section 1242 of the Food Security Act of 1985 (16 U.S.C. 3842) is
    amended to read as follows:
    ``SEC. 1242. DELIVERY OF TECHNICAL ASSISTANCE.
        ``(a) Definition of Eligible Participant.--In this section, the
    term `eligible participant' means a producer, landowner, or entity that
    is participating in, or seeking to participate in, programs for which
    the producer, landowner, or entity is otherwise eligible to participate
    in under this title or the agricultural management assistance program
    under section 524 of the Federal Crop Insurance Act (7 U.S.C. 1524).
        ``(b) Purpose of Technical Assistance.--The purpose of technical
    assistance authorized by this section is to provide eligible
    participants with consistent, science-based, site-specific practices
    designed to achieve conservation objectives on land active in
    agricultural, forestry, or related uses.
        ``(c) Provision of Technical Assistance.--The Secretary shall
    provide technical assistance under this title to an eligible
    participant--
            ``(1) directly;
            ``(2) through an agreement with a third-party provider; or
            ``(3) at the option of the eligible participant, through a
        payment, as determined by the Secretary, to the eligible
        participant for an approved third-party provider, if available.
        ``(d) Non-Federal Assistance.--The Secretary may request the
    services of, and enter into cooperative agreements or contracts with,
    other agencies within the Department or non-Federal entities to assist
    the Secretary in providing technical assistance necessary to assist in
    implementing conservation programs under this title.
        ``(e) Certification of Third-Party Providers.--
            ``(1) Purpose.--The purpose of the third-party provider program
        is to increase the availability and range of technical expertise
        available to eligible participants to plan and implement
        conservation measures.
            ``(2) Regulations.--Not later than 180 days after the date of
        the enactment of the Food, Conservation, and Energy Act of 2008,
        the Secretary shall promulgate such regulations as are necessary to
        carry out this section.
            ``(3) Expertise.--In promulgating such regulations, the
        Secretary, to the maximum extent practicable, shall--
                ``(A) ensure that persons with expertise in the technical
            aspects of conservation planning, watershed planning, and
            environmental engineering, including commercial entities,
            nonprofit entities, State or local governments or agencies, and
            other Federal agencies, are eligible to become approved
            providers of the technical assistance;
                ``(B) provide national criteria for the certification of
            third party providers; and
                ``(C) approve any unique certification standards
            established at the State level.
        ``(f) Administration.--
            ``(1) Funding.--Effective for fiscal year 2008 and each
        subsequent fiscal year, funds of the Commodity Credit Corporation
        made available to carry out technical assistance for each of the
        programs specified in section 1241 shall be available for the
        provision of technical assistance from third-party providers under
        this section.
            ``(2) Term of agreement.--An agreement with a third-party
        provider under this section shall have a term that--
                ``(A) at a minimum, is equal to the period beginning on the
            date on which the agreement is entered into and ending on the
            date that is 1 year after the date on which all activities
            performed pursuant to the agreement have been completed;
                ``(B) does not exceed 3 years; and
                ``(C) can be renewed, as determined by the Secretary.
            ``(3) Review of certification requirements.--Not later than 1
        year after the date of enactment of the Food, Conservation, and
        Energy Act of 2008, the Secretary shall--
                ``(A) review certification requirements for third-party
            providers; and
                ``(B) make any adjustments considered necessary by the
            Secretary to improve participation.
            ``(4) Eligible activities.--
                ``(A) Inclusion of activities.--The Secretary may include
            as activities eligible for payments to a third party provider--
                    ``(i) technical services provided directly to eligible
                participants, such as conservation planning, education and
                outreach, and assistance with design and implementation of
                conservation practices; and
                    ``(ii) related technical assistance services that
                accelerate conservation program delivery.
                ``(B) Exclusions.--The Secretary shall not designate as an
            activity eligible for payments to a third party provider any
            service that is provided by a business, or equivalent, in
            connection with conducting business and that is customarily
            provided at no cost.
            ``(5) Payment amounts.--The Secretary shall establish fair and
        reasonable amounts of payments for technical services provided by
        third-party providers.
        ``(g) Availability of Technical Services.--
            ``(1) In general.--In carrying out the programs under this
        title and the agricultural management assistance program under
        section 524 of the Federal Crop Insurance Act (7 U.S.C. 1524), the
        Secretary shall make technical services available to all eligible
        participants who are installing an eligible practice.
            ``(2) Technical service contracts.--In any case in which
        financial assistance is not provided under a program referred to in
        paragraph (1), the Secretary may enter into a technical service
        contract with the eligible participant for the purposes of
        assisting in the planning, design, or installation of an eligible
        practice.
        ``(h) Review of Conservation Practice Standards.--
            ``(1) Review required.--The Secretary shall--
                ``(A) review conservation practice standards, including
            engineering design specifications, in effect on the date of the
            enactment of the Food, Conservation, and Energy Act of 2008;
                ``(B) ensure, to the maximum extent practicable, the
            completeness and relevance of the standards to local
            agricultural, forestry, and natural resource needs, including
            specialty crops, native and managed pollinators, bioenergy crop
            production, forestry, and such other needs as are determined by
            the Secretary; and
                ``(C) ensure that the standards provide for the optimal
            balance between meeting site-specific conservation needs and
            minimizing risks of design failure and associated costs of
            construction and installation.
            ``(2) Consultation.--In conducting the review under paragraph
        (1), the Secretary shall consult with eligible participants, crop
        consultants, cooperative extension and land grant universities,
        nongovernmental organizations, and other qualified entities.
            ``(3) Expedited revision of standards.--If the Secretary
        determines under paragraph (1) that revisions to the conservation
        practice standards, including engineering design specifications,
        are necessary, the Secretary shall establish an administrative
        process for expediting the revisions.
        ``(i) Addressing Concerns of Speciality Crop, Organic, and
    Precision Agriculture Producers.--
            ``(1) In general.--The Secretary shall--
                ``(A) to the maximum extent practicable, fully incorporate
            specialty crop production, organic crop production, and
            precision agriculture into the conservation practice standards;
            and
                ``(B) provide for the appropriate range of conservation
            practices and resource mitigation measures available to
            producers involved with organic or specialty crop production or
            precision agriculture.
            ``(2) Availability of adequate technical assistance.--
                ``(A) In general.--The Secretary shall ensure that adequate
            technical assistance is available for the implementation of
            conservation practices by producers involved with organic,
            specialty crop production, or precision agriculture through
            Federal conservation programs.
                ``(B) Requirements.--In carrying out subparagraph (A), the
            Secretary shall develop--
                    ``(i) programs that meet specific needs of producers
                involved with organic, specialty crop production or
                precision agriculture through cooperative agreements with
                other agencies and nongovernmental organizations; and
                    ``(ii) program specifications that allow for innovative
                approaches to engage local resources in providing technical
                assistance for planning and implementation of conservation
                practices.''.
    SEC. 2707. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.
        (a) Transfer of Existing Provisions.--Subsections (a), (c), and (d)
    of section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843) are--
            (1) redesignated as subsections (c), (d), and (e),
        respectively; and
            (2) transferred to appear at the end of section 1244 of such
        Act (16 U.S.C. 3844).
        (b) Establishment of Partnership Initiative.--Section 1243 of the
    Food Security Act of 1985 (16 U.S.C. 3843), as amended by subsection
    (a), is amended to read as follows:
    ``SEC. 1243. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.
        ``(a) Establishment of Initiative.--The Secretary shall establish a
    cooperative conservation partnership initiative (in this section
    referred to as the `Initiative') to work with eligible partners to
    provide assistance to producers enrolled in a program described in
    subsection (c)(1) that will enhance conservation outcomes on
    agricultural and nonindustrial private forest land.
        ``(b) Purposes.--The purposes of a partnership entered into under
    the Initiative shall be--
            ``(1) to address conservation priorities involving agriculture
        and nonindustrial private forest land on a local, State, multi-
        State, or regional level;
            ``(2) to encourage producers to cooperate in meeting applicable
        Federal, State, and local regulatory requirements related to
        production involving agriculture and nonindustrial private forest
        land;
            ``(3) to encourage producers to cooperate in the installation
        and maintenance of conservation practices that affect multiple
        agricultural or nonindustrial private forest operations; or
            ``(4) to promote the development and demonstration of
        innovative conservation practices and delivery methods, including
        those for specialty crop and organic production and precision
        agriculture producers.
        ``(c) Initiative Programs.--
            ``(1) Covered programs.--Except as provided in paragraph (2),
        the Initiative applies to all conservation programs under subtitle
        D.
            ``(2) Excluded programs.--The Initiative shall not include the
        following programs:
                ``(A) Conservation reserve program.
                ``(B) Wetlands reserve program.
                ``(C) Farmland protection program
                ``(D) Grassland reserve program.
        ``(d) Eligible Partners.--The Secretary may enter into a
    partnership under the Initiative with one or more of the following:
            ``(1) States and local governments.
            ``(2) Indian tribes.
            ``(3) Producer associations.
            ``(4) Farmer cooperatives.
            ``(5) Institutions of higher education.
            ``(6) Nongovernmental organizations with a history of working
        cooperatively with producers to effectively address conservation
        priorities related to agricultural production and nonindustrial
        private forest land.
        ``(e) Implementation Agreements.--The Secretary shall carry out the
    Initiative--
            ``(1) by selecting, through a competitive process, eligible
        partners from among applications submitted under subsection (f);
        and
            ``(2) by entering into multi-year agreements with eligible
        partners so selected for a period not to exceed 5 years.
        ``(f) Applications.--
            ``(1) Required information.--An application to enter into a
        partnership agreement under the Initiative shall include the
        following:
                ``(A) A description of the area covered by the agreement,
            conservation priorities in the area, conservation objectives to
            be achieved, and the expected level of participation by
            agricultural producers and nonindustrial private forest
            landowners.
                ``(B) A description of the partner, or partners,
            collaborating to achieve the objectives of the agreement, and
            the roles, responsibilities, and capabilities of the partner.
                ``(C) A description of the resources that are requested
            from the Secretary, and the non-Federal resources that will be
            leveraged by the Federal contribution.
                ``(D) A description of the plan for monitoring, evaluating,
            and reporting on progress made towards achieving the objectives
            of the agreement.
                ``(E) Such other information that may be required by the
            Secretary.
            ``(2) Priorities.--The Secretary shall give priority to
        applications for agreements that--
                ``(A) have a high percentage of producers involved and
            working agricultural or nonindustrial private forest land
            included in the area covered by the agreement;
                ``(B) significantly leverage non-Federal financial and
            technical resources and coordinate with other local, State, or
            Federal efforts;
                ``(C) deliver high percentages of applied conservation to
            address water quality, water conservation, or State, regional,
            or national conservation initiatives;
                ``(D) provide innovation in conservation methods and
            delivery, including outcome-based performance measures and
            methods; or
                ``(E) meet other factors, as determined by the Secretary.
        ``(g) Relationship to Covered Programs.--
            ``(1) Compliance with program rules.--Except as provided in
        paragraph (2), the Secretary shall ensure that resources made
        available under the Initiative are delivered in accordance with the
        applicable rules of programs specified in subsection (c)(1) through
        normal program mechanisms relating to program functions, including
        rules governing appeals, payment limitations, and conservation
        compliance.
            ``(2) Adjustment.--The Secretary may adjust the elements of any
        program specified in subsection (c)(1)--
                ``(A) to better reflect unique local circumstances and
            purposes if the Secretary determines such adjustments are
            necessary to achieve the purposes of the Initiative; and
                ``(B) to provide preferential enrollment to producers who
            are eligible for the applicable program and to participate in
            the Initiative.
        ``(h) Technical and Financial Assistance.--The Secretary shall
    provide appropriate technical and financial assistance to producers
    participating in the Initiative in an amount determined to be necessary
    to achieve the purposes of the Initiative.
        ``(i) Funding.--
            ``(1) Reservation.--Of the funds and acres made available for
        each of fiscal years 2009 through 2012 to implement the programs
        described in subsection (c)(1), the Secretary shall reserve 6
        percent of the funds and acres to ensure an adequate source of
        funds and acres for the Initiative.
            ``(2) Allocation requirements.--Of the funds and acres reserved
        for the Initiative for a fiscal year, the Secretary shall
        allocate--
                ``(A) 90 percent of the funds and acres to projects based
            on the direction of State conservationists, with the advice of
            State technical committees; and
                ``(B) 10 percent of the funds and acres to projects based
            on a national competitive process established by the Secretary.
            ``(3) Unused funding.--Any funds and acres reserved for a
        fiscal year under paragraph (1) that are not obligated by April 1
        of that fiscal year may be used to carry out other activities under
        the program that is the source of the funds or acres during the
        remainder of that fiscal year.
            ``(4) Administrative costs of partners.--Overhead or
        administrative costs of partners may not be covered by funds
        provided through the Initiative.''.
    SEC. 2708. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.
        Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844), as
    amended by section 2707, is further amended--
            (1) by striking subsection (a) and inserting the following new
        subsection:
        ``(a) Incentives for Certain Farmers and Ranchers and Indian
    Tribes.--
            ``(1) Incentives authorized.--In carrying out any conservation
        program administered by the Secretary, the Secretary may provide to
        a person or entity specified in paragraph (2) incentives to
        participate in the conservation program--
                ``(A) to foster new farming and ranching opportunities; and
                ``(B) to enhance long-term environmental goals.
            ``(2) Covered persons.--Incentives authorized by paragraph (1)
        may be provided to the following:
                ``(A) Beginning farmers or ranchers.
                ``(B) Socially disadvantaged farmers or ranchers.
                ``(C) Limited resource farmers or ranchers.
                ``(D) Indian tribes.''; and
            (2) by adding at the end the following new subsections:
        ``(f) Acreage Limitations.--
            ``(1) Limitations.--
                ``(A) Enrollments.--The Secretary shall not enroll more
            than 25 percent of the cropland in any county in the programs
            administered under subchapters B and C of chapter 1 of subtitle
            D.
                ``(B) Easements.--Not more than 10 percent of the cropland
            in a country may be subject to an easement acquired under
            subchapter C of chapter 1 of subtitle D.
            ``(2) Exceptions.--The Secretary may exceed the limitation in
        paragraph (1)(A), if the Secretary determines that--
                ``(A) the action would not adversely affect the local
            economy of a county; and
                ``(B) operators in the county are having difficulties
            complying with conservation plans implemented under section
            1212.
            ``(3) Waiver to exclude certain acreage.--The Secretary may
        grant a waiver to exclude acreage enrolled under subsection
        (c)(2)(B) or (f)(4) of section 1234 from the limitations in
        paragraph (1)(A) with the concurrence of the county government of
        the county involved.
            ``(4) Shelterbelts and windbreaks.--The limitations established
        under paragraph (1) shall not apply to cropland that is subject to
        an easement under subchapter C of chapter 1 that is used for the
        establishment of shelterbelts and windbreaks.
        ``(g) Compliance and Performance.--For each conservation program
    under subtitle D, the Secretary shall develop procedures--
            ``(1) to monitor compliance with program requirements;
            ``(2) to measure program performance;
            ``(3) to demonstrate whether the long-term conservation
        benefits of the program are being achieved;
            ``(4) to track participation by crop and livestock types; and
            ``(5) to coordinate activities described in this subsection
        with the national conservation program authorized under section 5
        of the Soil and Water Resources Conservation Act of 1977 (16 U.S.C.
        2004).
        ``(h) Encouragement of Pollinator Habitat Development and
    Protection.--In carrying out any conservation program administered by
    the Secretary, the Secretary may, as appropriate, encourage--
            ``(1) the development of habitat for native and managed
        pollinators; and
            ``(2) the use of conservation practices that benefit native and
        managed pollinators.
        ``(i) Streamlined Application Process.--
            ``(1) In general.--In carrying out each conservation program
        under this title, the Secretary shall ensure that the application
        process used by producers and landowners is streamlined to minimize
        complexity and eliminate redundancy.
            ``(2) Review and streamlining.--
                ``(A) Review.--The Secretary shall carry out a review of
            the application forms and processes for each conservation
            program covered by this subsection.
                ``(B) Streamlining.--On completion of the review the
            Secretary shall revise application forms and processes, as
            necessary, to ensure that--
                    ``(i) all required application information is essential
                for the efficient, effective, and accountable
                implementation of conservation programs;
                    ``(ii) conservation program applicants are not required
                to provide information that is readily available to the
                Secretary through existing information systems of the
                Department of Agriculture;
                    ``(iii) information provided by the applicant is
                managed and delivered efficiently for use in all stages of
                the application process, or for multiple applications; and
                    ``(iv) information technology is used effectively to
                minimize data and information input requirements.
            ``(3) Implementation and notification.--Not later than 1 year
        after the date of enactment of the Food, Conservation, and Energy
        Act of 2008, the Secretary shall submit to Congress a written
        notification of completion of the requirements of this
        subsection.''.
    SEC. 2709. ENVIRONMENTAL SERVICES MARKETS.
        Subtitle E of title XII of the Food Security Act of 1985 is amended
    by inserting after section 1244 (16 U.S.C. 3844) the following new
    section:
    ``SEC. 1245. ENVIRONMENTAL SERVICES MARKETS.
        ``(a) Technical Guidelines Required.--The Secretary shall establish
    technical guidelines that outline science-based methods to measure the
    environmental services benefits from conservation and land management
    activities in order to facilitate the participation of farmers,
    ranchers, and forest landowners in emerging environmental services
    markets. The Secretary shall give priority to the establishment of
    guidelines related to farmer, rancher, and forest landowner
    participation in carbon markets.
        ``(b) Establishment.--The Secretary shall establish guidelines
    under subsection (a) for use in developing the following:
            ``(1) A procedure to measure environmental services benefits.
            ``(2) A protocol to report environmental services benefits.
            ``(3) A registry to collect, record and maintain the benefits
        measured.
        ``(c) Verification Requirements.--
            ``(1) Verification of reports.--The Secretary shall establish
        guidelines for a process to verify that a farmer, rancher, or
        forest landowner who reports an environmental services benefit
        pursuant to the protocol required by paragraph (2) of subsection
        (b) for inclusion in the registry required by paragraph (3) of such
        subsection has implemented the conservation or land management
        activity covered by the report.
            ``(2) Role of third parties.--In establishing the verification
        guidelines required by paragraph (1), the Secretary shall consider
        the role of third-parties in conducting independent verification of
        benefits produced for environmental services markets and other
        functions, as determined by the Secretary.
        ``(d) Use of Existing Information.--In carrying out subsection (b),
    the Secretary shall build on activities or information in existence on
    the date of the enactment of the Food, Conservation, and Energy Act of
    2008 regarding environmental services markets.
        ``(e) Consultation.--In carrying out this section, the Secretary
    shall consult with the following:
            ``(1) Federal and State government agencies.
            ``(2) Nongovernmental interests including--
                ``(A) farm, ranch, and forestry producers;
                ``(B) financial institutions involved in environmental
            services trading;
                ``(C) institutions of higher education with relevant
            expertise or experience;
                ``(D) nongovernmental organizations with relevant expertise
            or experience; and
                ``(E) private sector representatives with relevant
            expertise or experience.
            ``(3) Other interested persons, as determined by the
        Secretary.''.
    SEC. 2710. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.
        Subtitle F of title XII of the Food Security Act of 1985 is amended
    by inserting after section 1251 (16 U.S.C. 2005a) the following new
    section:
    ``SEC. 1252. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.
        ``(a) Establishment and Purpose.--The Secretary shall establish a
    conservation experienced services program (in this section referred to
    as the `ACES Program') for the purpose of utilizing the talents of
    individuals who are age 55 or older, but who are not employees of the
    Department of Agriculture or a State agriculture department, to provide
    technical services in support of the conservation-related programs and
    authorities carried out by the Secretary. Such technical services may
    include conservation planning assistance, technical consultation, and
    assistance with design and implementation of conservation practices.
        ``(b) Program Agreements.--
            ``(1) Relation to older american community service employment
        program.--Notwithstanding any other provision of law relating to
        Federal grants, cooperative agreements, or contracts, to carry out
        the ACES program during a fiscal year, the Secretary may enter into
        agreements with nonprofit private agencies and organizations
        eligible to receive grants for that fiscal year under the Community
        Service Senior Opportunities Act (42 U.S.C. 3056 et seq.) to secure
        participants for the ACES program who will provide technical
        services under the ACES program.
            ``(2) Required determination.--Before entering into an
        agreement under paragraph (1), the Secretary shall ensure that the
        agreement would not--
                ``(A) result in the displacement of individuals employed by
            the Department, including partial displacement through
            reduction of non-overtime hours, wages, or employment benefits;
                ``(B) result in the use of an individual under the ACES
            program for a job or function in a case in which a Federal
            employee is in a layoff status from the same or a
            substantially-equivalent job or function with the Department;
            or
                ``(C) affect existing contracts for services.
        ``(c) Funding Source.--
            ``(1) In general.--Except as provided in paragraph (2), the
        Secretary may carry out the ACES program using funds made available
        to carry out each program under this title.
            ``(2) Exclusions.--Funds made available to carry out the
        following programs may not be used to carry out the ACES program:
                ``(A) The conservation reserve program.
                ``(B) The wetlands reserve program.
                ``(C) The grassland reserve program.
                ``(D) The conservation stewardship program.
        ``(d) Liability.--An individual providing technical services under
    the ACES program is deemed to be an employee of the United States
    Government for purposes of chapter 171 of title 28, United States Code,
    if the individual--
            ``(1) is providing technical services pursuant to an agreement
        entered into under subsection (b); and
            ``(2) is acting within the scope of the agreement.''.
    SEC. 2711. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES AND THEIR
    RESPONSIBILITIES.
        Subtitle G of title XII of the Farm Security Act of 1985 (16 U.S.C.
    3861, 3862) is amended to read as follows:

                    ``Subtitle G--State Technical Committees

    ``SEC. 1261. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES.
        ``(a) Establishment.--The Secretary shall establish a technical
    committee in each State to assist the Secretary in the considerations
    relating to implementation and technical aspects of the conservation
    programs under this title.
        ``(b) Standards.--Not later than 180 days after the date of
    enactment of the Food, Conservation, and Energy Act of 2008, the
    Secretary shall develop--
            ``(1) standard operating procedures to standardize the
        operations of State technical committees; and
            ``(2) standards to be used by State technical committees in the
        development of technical guidelines under section 1262(b) for the
        implementation of the conservation provisions of this title.
        ``(c) Composition.--Each State technical committee shall be
    composed of agricultural producers and other professionals that
    represent a variety of disciplines in the soil, water, wetland, and
    wildlife sciences. The technical committee for a State shall include
    representatives from among the following:
            ``(1) The Natural Resources Conservation Service.
            ``(2) The Farm Service Agency.
            ``(3) The Forest Service.
            ``(4) The National Institute of Food and Agriculture.
            ``(5) The State fish and wildlife agency.
            ``(6) The State forester or equivalent State official.
            ``(7) The State water resources agency.
            ``(8) The State department of agriculture.
            ``(9) The State association of soil and water conservation
        districts.
            ``(10) Agricultural producers representing the variety of crops
        and livestock or poultry raised within the State.
            ``(11) Owners of nonindustrial private forest land.
            ``(12) Nonprofit organizations within the meaning of section
        501(c)(3) of the Internal Revenue Code of 1986 with demonstrable
        conservation expertise and experience working with agriculture
        producers in the State.
            ``(13) Agribusiness.
    ``SEC. 1262. RESPONSIBILITIES.
        ``(a) In General.--Each State technical committee established under
    section 1261 shall meet regularly to provide information, analysis, and
    recommendations to appropriate officials of the Department of
    Agriculture who are charged with implementing the conservation
    provisions of this title.
        ``(b) Public Notice and Attendance.--Each State technical committee
    shall provide public notice of, and permit public attendance at,
    meetings considering issues of concern related to carrying out this
    title.
        ``(c) Role.--
            ``(1) In general.--The role of State technical committees is
        advisory in nature, and such committees shall have no
        implementation or enforcement authority. However, the Secretary
        shall give strong consideration to the recommendations of such
        committees in administering the programs under this title.
            ``(2) Advisory role in establishing program priorities and
        criteria.--Each State technical committee shall advise the
        Secretary in establishing priorities and criteria for the programs
        in this title, including the review of whether local working groups
        are addressing those priorities.
        ``(d) FACA Requirements.--
            ``(1) Exemption.--Each State technical committee shall be
        exempt from the Federal Advisory Committee Act (5 U.S.C. App.).
            ``(2) Local working groups.--For purposes of the Federal
        Advisory Committee Act (5 U.S.C. App.), any local working group
        established under this subtitle shall be considered to be a
        subcommittee of the applicable State technical committee.''.

               Subtitle I--Conservation Programs Under Other Laws

    SEC. 2801. AGRICULTURAL MANAGEMENT ASSISTANCE PROGRAM.
        (a) Eligible States.--Section 524(b)(1) of the Federal Crop
    Insurance Act (7 U.S.C. 1524(b)(1)) is amended by inserting ``Hawaii,''
    after ``Delaware,''.
        (b) Funding.--Section 524(b)(4)(B) of the Federal Crop Insurance
    Act (7 U.S.C. 1524(b)(4)(B)) is amended--
            (1) in clause (i), by striking ``Except as provided in clauses
        (ii) and (iii)'' and inserting ``Except as provided in clause
        (ii)''; and
            (2) by striking clauses (ii) and (iii) and inserting the
        following new clause:
                    ``(ii) Exception for fiscal years 2008 through 2012.--
                For each of fiscal years 2008 through 2012, the Commodity
                Credit Corporation shall make available to carry out this
                subsection $15,000,000.''.
        (c) Certain Uses.--Section 524(b)(4) of the Federal Crop Insurance
    Act (7 U.S.C. 1524(b)(4)) is amended by adding at the end the following
    new subparagraph:
                ``(C) Certain uses.--Of the amounts made available to carry
            out this subsection for a fiscal year, the Commodity Credit
            Corporation shall use not less than--
                    ``(i) 50 percent to carry out subparagraphs (A), (B),
                and (C) of paragraph (2) through the Natural Resources
                Conservation Service;
                    ``(ii) 10 percent to provide organic certification cost
                share assistance through the Agricultural Marketing
                Service; and
                    ``(iii) 40 percent to conduct activities to carry out
                subparagraph (F) of paragraph (2) through the Risk
                Management Agency.''.
    SEC. 2802. TECHNICAL ASSISTANCE UNDER SOIL CONSERVATION AND DOMESTIC
    ALLOTMENT ACT.
        (a) Prevention of Soil Erosion.--
            (1) In general.--The first section of the Soil Conservation and
        Domestic Allotment Act (16 U.S.C. 590a) is amended--
                (A) by striking ``That it'' and inserting the following:
    ``SECTION 1. PURPOSE.
        ``It''; and
                (B) in the matter preceding paragraph (1), by striking
            ``and thereby to preserve natural resources,'' and inserting
            ``to preserve soil, water, and related resources, promote soil
            and water quality,''.
            (2) Policies and purposes.--Section 7(a)(1) of the Soil
        Conservation and Domestic Allotment Act (16 U.S.C. 590g(a)(1)) is
        amended by striking ``fertility'' and inserting ``and water quality
        and related resources''.
        (b) Definitions.--Section 10 of the Soil Conservation and Domestic
    Allotment Act (16 U.S.C. 590j) is amended to read as follows:
      ``SEC. 10. DEFINITIONS.
        ``In this Act:
            ``(1) Agricultural commodity.--The term `agricultural
        commodity' means--
                ``(A) an agricultural commodity; and
                ``(B) any regional or market classification, type, or grade
            of an agricultural commodity.
            ``(2) Technical assistance.--
                ``(A) In general.--The term `technical assistance' means
            technical expertise, information, and tools necessary for the
            conservation of natural resources on land active in
            agricultural, forestry, or related uses.
                ``(B) Inclusions.--The term `technical assistance'
            includes--
                    ``(i) technical services provided directly to farmers,
                ranchers, and other eligible entities, such as conservation
                planning, technical consultation, and assistance with
                design and implementation of conservation practices; and
                    ``(ii) technical infrastructure, including activities,
                processes, tools, and agency functions needed to support
                delivery of technical services, such as technical
                standards, resource inventories, training, data,
                technology, monitoring, and effects analyses.''.
    SEC. 2803. SMALL WATERSHED REHABILITATION PROGRAM.
        (a) Availability of Funds.--Section 14(h)(1) of the Watershed
    Protection and Flood Prevention Act (16 U.S.C. 1012(h)(1)) is amended
    by adding at the end the following new subparagraph:
                ``(G) $100,000,000 for fiscal year 2009, to be available
            until expended.''.
        (b) Authorization of Appropriations.--Section 14(h)(2)(E) of the
    Watershed Protection and Flood Prevention Act (16 U.S.C. 1012(h)(2)(E))
    is amended by striking ``fiscal year 2007'' and inserting ``each of
    fiscal years 2008 through 2012''.
    SEC. 2804. AMENDMENTS TO SOIL AND WATER RESOURCES CONSERVATION ACT OF
    1977.
        (a) Congressional Findings.--Section 2 of the Soil and Water
    Resources Conservation Act of 1977 (16 U.S.C. 2001) is amended--
            (1) in paragraph (2), by striking ``base, of the'' and
        inserting ``base of the''; and
            (2) in paragraph (3), by striking ``(3)'' and all that follows
        through ``Since individual'' and inserting the following:
            ``(3) Appraisal and inventory of resources, assessment and
        inventory of conservation needs, evaluation of the effects of
        conservation practices, and analyses of alternative approaches to
        existing conservation programs are basic to effective soil, water,
        and related natural resource conservation.
            ``(4) Since individual''.
        (b) Continuing Appraisal of Soil, Water, and Related Resources.--
    Section 5 of the Soil and Water Resources Conservation Act of 1977 (16
    U.S.C. 2004) is amended--
            (1) in subsection (a)--
                (A) in paragraph (5), by striking ``and'' at the end;
                (B) in paragraph (6), by striking the period at the end and
            inserting ``; and''; and
                (C) by adding at the end the following new paragraph:
            ``(7) data on conservation plans, conservation practices
        planned or implemented, environmental outcomes, economic costs, and
        related matters under conservation programs administered by the
        Secretary.'';
            (2) by redesignating subsection (d) as subsection (e);
            (3) by inserting after subsection (c) the following new
        subsection:
        ``(d) Evaluation of Appraisal.--In conducting the appraisal
    described in subsection (a), the Secretary shall concurrently solicit
    and evaluate recommendations for improving the appraisal, including the
    content, scope, process, participation in, and other elements of the
    appraisal, as determined by the Secretary.''; and
            (4) in subsection (e), as redesignated by paragraph (2), by
        striking the first sentence and inserting the following: ``The
        Secretary shall conduct comprehensive appraisals under this
        section, to be completed by December 31, 2010, and December 31,
        2015.''.
        (c) Soil and Water Conservation Program.--Section 6 of the Soil and
    Water Resources Conservation Act of 1977 (16 U.S.C. 2005) is amended--
            (1) by redesignating subsection (b) as subsection (d);
            (2) by inserting after subsection (a) the following new
        subsections:
        ``(b) Evaluation of Existing Conservation Programs.--In evaluating
    existing conservation programs, the Secretary shall emphasize
    demonstration, innovation, and monitoring of specific program
    components in order to encourage further development and adoption of
    practices and performance-based standards.
        ``(c) Improvement to Program.--In developing a national soil and
    water conservation program under subsection (a), the Secretary shall
    solicit and evaluate recommendations for improving the program,
    including the content, scope, process, participation in, and other
    elements of the program, as determined by the Secretary.''; and
            (3) in subsection (d), as redesignated by paragraph (1), by
        striking ``December 31, 1979'' and all that follows through
        ``December 31, 2007'' and inserting ``December 31, 2011, and
        December 31, 2016''.
        (d) Reports to Congress.--Section 7 of the Soil and Water Resources
    Conservation Act of 1977 (16 U.S.C. 2006) is amended to read as
    follows:
    ``SEC. 7. REPORTS TO CONGRESS.
        ``(a) Appraisal.--Not later than the date on which Congress
    convenes in 2011 and 2016, the President shall transmit to the
    Committee on Agriculture of the House of Representatives and the
    Committee on Agriculture, Nutrition, and Forestry of the Senate the
    appraisal developed under section 5 and completed before the end of the
    previous year.
        ``(b) Program and Statement of Policy.--Not later than the date on
    which Congress convenes in 2012 and 2017, the President shall transmit
    to the Committee on Agriculture of the House of Representatives and the
    Committee on Agriculture, Nutrition, and Forestry of the Senate--
            ``(1) the initial program or updated program developed under
        section 6 and completed before the end of the previous year;
            ``(2) a detailed statement of policy regarding soil and water
        conservation activities of the Department of Agriculture; and
            ``(3) a special evaluation of the status, conditions, and
        trends of soil quality on cropland in the United States that
        addresses the challenges and opportunities for reducing soil
        erosion to tolerance levels.
        ``(c) Improvements to Appraisal and Program.--Not later than the
    date on which Congress convenes in 2012, the Secretary shall submit to
    the Committee on Agriculture of the House of Representatives and the
    Committee on Agriculture, Nutrition, and Forestry of the Senate a
    report describing the plans of the Department of Agriculture for
    improving the resource appraisal and national conservation program
    required under this Act, based on the recommendations received under
    sections 5(d) and 6(c).''.
        (e) Termination of Program.--Section 10 of the Soil and Water
    Resources Conservation Act of 1977 (16 U.S.C. 2009) is amended by
    striking ``2008'' and inserting ``2018''.
    SEC. 2805. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.
        (a) Locally Led Planning Process.--Section 1528 of the Agriculture
    and Food Act of 1981 (16 U.S.C. 3451) is amended--
            (1) in paragraph (1), in the matter preceding subparagraph (A),
        by striking ``planning process'' and inserting ``locally led
        planning process'';
            (2) by redesignating paragraphs (8) and (9) as paragraphs (9)
        and (8), respectively, and moving those paragraphs so as to appear
        in numerical order;
            (3) in paragraph (8) (as so redesignated)--
                (A) by striking ``planning process'' and inserting
            ``Locally led planning process''; and
                (B) by striking ``council'' and inserting ``locally led
            council''.
        (b) Authorized Technical Assistance.--Section 1528(13) of the
    Agriculture and Food Act of 1981 (16 U.S.C. 3451(13)) is amended by
    striking subparagraphs (C) and (D) and inserting the following new
    subparagraphs:
                ``(C) providing assistance for the implementation of area
            plans and projects; and
                ``(D) providing services that involve the resources of
            Department of Agriculture programs in a local community, as
            defined in the locally led planning process.''.
        (c) Improved Provision of Technical Assistance.--Section 1531 of
    the Agriculture and Food Act of 1981 (16 U.S.C. 3454) is amended--
            (1) by inserting ``(a) In General.--'' before ``In carrying'';
        and
            (2) by adding at the end the following new subsection:
        ``(b) Coordinator.--
            ``(1) In general.--To improve the provision of technical
        assistance to councils under this subtitle, the Secretary shall
        designate for each council an individual to be the coordinator for
        the council.
            ``(2) Responsibility.--A coordinator for a council shall be
        directly responsible for the provision of technical assistance to
        the council.''.
        (d) Program Evaluation.--Section 1534 of the Agriculture and Food
    Act of 1981 (16 U.S.C. 3457) is repealed.
    SEC. 2806. USE OF FUNDS IN BASIN FUNDS FOR SALINITY CONTROL ACTIVITIES
    UPSTREAM OF IMPERIAL DAM.
        (a) In General.--Section 202(a) of the Colorado River Basin
    Salinity Control Act (43 U.S.C. 1592(a)) is amended by adding at the
    end the following new paragraph:
            ``(7) Basin states program.--
                ``(A) In general.--A Basin States Program that the
            Secretary, acting through the Bureau of Reclamation, shall
            implement to carry out salinity control activities in the
            Colorado River Basin using funds made available under section
            205(f).
                ``(B) Assistance.--The Secretary, in consultation with the
            Colorado River Basin Salinity Control Advisory Council, shall
            carry out this paragraph using funds described in subparagraph
            (A) directly or by providing grants, grant commitments, or
            advance funds to Federal or non-Federal entities under such
            terms and conditions as the Secretary may require.
                ``(C) Activities.--Funds described in subparagraph (A)
            shall be used to carry out, as determined by the Secretary--
                    ``(i) cost-effective measures and associated works to
                reduce salinity from saline springs, leaking wells,
                irrigation sources, industrial sources, erosion of public
                and private land, or other sources;
                    ``(ii) operation and maintenance of salinity control
                features constructed under the Colorado River Basin
                salinity control program; and
                    ``(iii) studies, planning, and administration of
                salinity control activities.
                ``(D) Report.--
                    ``(i) In general.--Not later than 30 days before
                implementing the program established under this paragraph,
                the Secretary shall submit to the appropriate committees of
                Congress a planning report that describes the proposed
                implementation of the program.
                    ``(ii) Implementation.--The Secretary may not expend
                funds to implement the program established under this
                paragraph before the expiration of the 30-day period
                beginning on the date on which the Secretary submits the
                report, or any revision to the report, under clause (i).''.
        (b) Conforming Amendments.--
            (1) Section 202 of the Colorado River Basin Salinity Control
        Act (43 U.S.C. 1592) is amended--
                (A) in subsection (a), in the matter preceding paragraph
            (1), by striking ``program'' and inserting ``programs''; and
                (B) in subsection (b)(4)--
                    (i) by striking ``program'' and inserting ``programs'';
                and
                    (ii) by striking ``and (6)'' and inserting ``(6), and
                (7)''.
            (2) Section 205 of the Colorado River Basin Salinity Control
        Act (43 U.S.C. 1595) is amended by striking subsection (f) and
        inserting the following new subsection:
        ``(f) Up-Front Cost Share.--
            ``(1) In general.--Effective beginning on the date of enactment
        of this paragraph, subject to paragraph (3), the cost share
        obligations required by this section shall be met through an up-
        front cost share from the Basin Funds, in the same proportions as
        the cost allocations required under subsection (a), as provided in
        paragraph (2).
            ``(2) Basin states program.--The Secretary shall expend the
        required cost share funds described in paragraph (1) through the
        Basin States Program for salinity control activities established
        under section 202(a)(7).
            ``(3) Existing salinity control activities.--The cost share
        contribution required by this section shall continue to be met
        through repayment in a manner consistent with this section for all
        salinity control activities for which repayment was commenced prior
        to the date of enactment of this paragraph.''.
    SEC. 2807. DESERT TERMINAL LAKES.
        Section 2507 of the Farm Security and Rural Investment Act of 2002
    (43 U.S.C. 2211 note; Public Law 107-171) is amended--
            (1) in subsection (a)--
                (A) by striking ``(a)'' and all that follows through
            ``$200,000,000'' and inserting ``(a) Transfer.--Subject to
            subsection (b) and paragraph (1) of section 207(a) of Public
            Law 108-7 (117 Stat. 146), notwithstanding paragraph (3) of
            that section, on the date of enactment of the Food,
            Conservation, and Energy Act of 2008, the Secretary of
            Agriculture shall transfer $175,000,000''; and
                (B) by striking the quotation marks at the beginning of
            paragraphs (1) and (2); and
            (2) by striking subsection (b) and inserting the following new
        subsection:
        ``(b) Permitted Uses.--In any case in which there are willing
    sellers, the funds described in subsection (a) may be used--
            ``(1) to lease water; or
            ``(2) to purchase land, water appurtenant to the land, and
        related interests in the Walker River Basin in accordance with
        section 208(a)(1)(A) of the Energy and Water Development
        Appropriations Act, 2006 (Public Law 109-103; 119 Stat. 2268).''.

               Subtitle J--Miscellaneous Conservation Provisions

    SEC. 2901. 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. 2902. NAMING OF NATIONAL PLANT MATERIALS CENTER AT BELTSVILLE,
    MARYLAND, IN HONOR OF NORMAN A. BERG.
        The National Plant Materials Center at Beltsville, Maryland,
    referenced in section 613.5(a) of title 7, Code of Federal Regulations,
    shall be known and designated as the ``Norman A. Berg National Plant
    Materials Center''. Any reference in a law, map, regulation, document,
    paper, or other record of the United States to such National Plant
    Materials Center shall be deemed to be a reference to the Norman A.
    Berg National Plant Materials Center.
    SEC. 2903. TRANSITION.
        (a) Continuation of Programs in Fiscal Year 2008.--Except as
    otherwise provided by an amendment made by this title, the Secretary of
    Agriculture shall continue to carry out any program or activity covered
    by title XII of the Food Security Act (16 U.S.C. 3801 et seq.) until
    September 30, 2008, using the provisions of law applicable to the
    program or activity as they existed on the day before the date of the
    enactment of this Act and using funds made available under such title
    for fiscal year 2008 for the program or activity.
        (b) Ground and Surface Water Conservation Program.--During the
    period beginning on the date of the enactment of this Act and ending on
    September 30, 2008, the Secretary of Agriculture shall continue to
    carry out the ground and surface water conservation program under
    section 1240I of the Food Security Act of 1985 (16 U.S.C. 3839aa-9), as
    in effect before the amendment made by section 2510, using the terms,
    conditions, and funds available to the Secretary to carry out such
    program on the day before the date of the enactment of this Act.
    SEC. 2904. REGULATIONS.
        (a) Issuance.--Except as otherwise provided in this title or an
    amendment made by this title, not later than 90 days after the date of
    enactment of this Act, the Secretary of Agriculture, in consultation
    with the Commodity Credit Corporation, shall promulgate such
    regulations as are necessary to implement this title.
        (b) Applicable Authority.--The promulgation of regulations under
    subsection (a) and administration of this title--
            (1) shall be carried out without regard to--
                (A) chapter 35 of title 44, United States Code (commonly
            known as the Paperwork Reduction Act); and
                (B) the Statement of Policy of the Secretary of Agriculture
            effective July 24, 1971 (36 Fed. Reg. 13804) relating to
            notices of proposed rulemaking and public participation in
            rulemaking; and
            (2) may--
                (A) be promulgated with an opportunity for notice and
            comment; or
                (B) if determined to be appropriate by the Secretary of
            Agriculture or the Commodity Credit Corporation, as an interim
            rule effective on publication with an opportunity for notice
            and comment.
        (c) Congressional Review of Agency Rulemaking.--In carrying out
    this section, the Secretary shall use the authority provided under
    section 808(2) of title 5, United States Code.

                              TITLE IV--NUTRITION
                         Subtitle A--Food Stamp Program

                 PART I--RENAMING OF FOOD STAMP ACT AND PROGRAM

    SEC. 4001. RENAMING OF FOOD STAMP ACT AND PROGRAM.
        (a) Short Title.--The first section of the Food Stamp Act of 1977
    (7 U.S.C. 2011 note; Public Law 88-525) is amended by striking ``Food
    Stamp Act of 1977'' and inserting ``Food and Nutrition Act of 2008''.
        (b) Program.--The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et
    seq.) (as amended by subsection (a)) is amended by striking ``food
    stamp program'' each place it appears and inserting ``supplemental
    nutrition assistance program''.
    SEC. 4002. CONFORMING AMENDMENTS.
        (a) In General.--
            (1) Section 4 of the Food and Nutrition Act of 2008 (7 U.S.C.
        2013) is amended in the section heading by striking ``food stamp
        program'' and inserting ``supplemental nutrition assistance
        program''.
            (2) Section 5(h)(2)(A) of the Food and Nutrition Act of 2008 (7
        U.S.C. 2014(h)(2)(A)) is amended by striking ``Food Stamp Disaster
        Task Force'' and inserting ``Disaster Task Force''.
            (3) Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C.
        2015) is amended--
                (A) in subsection (d)(3), by striking ``for food stamps'';
                (B) in subsection (j), in the subsection heading, by
            striking ``Food Stamp''; and
                (C) in subsection (o)--
                    (i) in paragraph (2), by striking ``food stamp
                benefits'' and inserting ``supplemental nutrition
                assistance program benefits''; and
                    (ii) in paragraph (6)--

                        (I) in subparagraph (A)--

                            (aa) in clause (i), by striking ``food stamps''
                        and inserting ``supplemental nutrition assistance
                        program benefits''; and
                            (bb) in clause (ii)--
                                (AA) in the matter preceding subclause (I),
                            by striking ``a food stamp recipient'' and
                            inserting ``a member of a household that
                            receives supplemental nutrition assistance
                            program benefits''; and
                                (BB) by striking ``food stamp benefits''
                            each place it appears and inserting
                            ``supplemental nutrition assistance program
                            benefits''; and

                        (II) in subparagraphs (D) and (E), by striking
                    ``food stamp recipients'' each place it appears and
                    inserting ``members of households that receive
                    supplemental nutrition assistance program benefits''.

            (4) Section 7 of the Food and Nutrition Act of 2008 (7 U.S.C.
        2016) is amended--
                (A) in subsection (i)--
                    (i) in paragraph (3)(B)(ii), by striking ``food stamp
                households'' and inserting ``households receiving
                supplemental nutrition assistance program benefits''; and
                    (ii) in paragraph (7), by striking ``food stamp
                issuance'' and inserting ``supplemental nutrition
                assistance issuance''; and
                (B) in subsection (k)--
                    (i) in paragraph (2), by striking ``food stamp
                benefits'' and inserting ``supplemental nutrition
                assistance program benefits''; and
                    (ii) in paragraph (3), by striking ``food stamp
                retail'' and inserting ``retail''.
            (5) Section 9(b)(1) of that Food and Nutrition Act of 2008 (7
        U.S.C. 2018(b)(1)) is amended by striking ``food stamp households''
        and inserting ``households that receive supplemental nutrition
        assistance program benefits''.
            (6) Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C.
        2020) is amended--
                (A) in subsection (e)--
                    (i) by striking ``food stamps'' each place it appears
                and inserting ``supplemental nutrition assistance program
                benefits'';
                    (ii) by striking ``food stamp offices'' each place it
                appears and inserting ``supplemental nutrition assistance
                program offices'';
                    (iii) by striking ``food stamp office'' each place it
                appears and inserting ``supplemental nutrition assistance
                program office''; and
                    (iv) in paragraph (25)--

                        (I) in the matter preceding subparagraph (A), by
                    striking ``Simplified Food Stamp Program'' and
                    inserting ``Simplified Supplemental Nutrition
                    Assistance Program''; and
                        (II) in subparagraph (A), by striking ``food stamp
                    benefits'' and inserting ``supplemental nutrition
                    assistance program benefits'';

                (B) in subsection (k), by striking ``may issue, upon
            request by the State agency, food stamps'' and inserting ``may
            provide, on request by the State agency, supplemental nutrition
            assistance program benefits'';
                (C) in subsection (l), by striking ``food stamp
            participation'' and inserting ``supplemental nutrition
            assistance program participation'';
                (D) in subsections (q) and (r), in the subsection headings,
            by striking ``Food Stamps'' each place it appears and inserting
            ``Benefits'';
                (E) in subsection (s), by striking ``food stamp benefits''
            each place it appears and inserting ``supplemental nutrition
            assistance program benefits''; and
                (F) in subsection (t)(1)--
                    (i) in subparagraph (A), by striking ``food stamp
                application'' and inserting ``supplemental nutrition
                assistance program application''; and
                    (ii) in subparagraph (B), by striking ``food stamp
                benefits'' and inserting ``supplemental nutrition
                assistance program benefits''.
            (7) Section 14(b) of the Food and Nutrition Act of 2008 (7
        U.S.C. 2023(b)) is amended by striking ``food stamp''.
            (8) Section 16 of the Food and Nutrition Act of 2008 (7 U.S.C.
        2025) is amended--
                (A) in subsection (a)(4), by striking ``food stamp
            informational activities'' and inserting ``informational
            activities relating to the supplemental nutrition assistance
            program'';
                (B) in subsection (c)(9)(C), by striking ``food stamp
            caseload'' and inserting ``the caseload under the supplemental
            nutrition assistance program''; and
                (C) in subsection (h)(1)(E)(i), by striking ``food stamp
            recipients'' and inserting ``members of households receiving
            supplemental nutrition assistance program benefits''.
            (9) Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C.
        2026) is amended--
                (A) in subsection (a)(2), by striking ``food stamp
            benefits'' each place it appears and inserting ``supplemental
            nutrition assistance program benefits'';
                (B) in subsection (b)--
                    (i) in paragraph (1)--

                        (I) in subparagraph (A), by striking ``food stamp
                    benefits'' and inserting ``supplemental nutrition
                    assistance program benefits''; and
                        (II) in subparagraph (B)--

                            (aa) in clause (ii)(II), by striking ``food
                        stamp recipients'' and inserting ``supplemental
                        nutrition assistance program recipients'';
                            (bb) in clause (iii)(I), by striking ``the
                        State's food stamp households'' and inserting ``the
                        number of households in the State receiving
                        supplemental nutrition assistance program
                        benefits''; and
                            (cc) in clause (iv)(IV)(bb), by striking ``food
                        stamp deductions'' and inserting ``supplemental
                        nutrition assistance program deductions'';
                    (ii) in paragraph (2), by striking ``food stamp
                benefits'' and inserting ``supplemental nutrition
                assistance program benefits''; and
                    (iii) in paragraph (3)--

                        (I) in subparagraph (A), by striking ``food stamp
                    employment'' and inserting ``supplemental nutrition
                    assistance program employment'';
                        (II) in subparagraph (B), by striking ``food stamp
                    recipients'' and inserting ``supplemental nutrition
                    assistance program recipients'';
                        (III) in subparagraph (C), by striking ``food
                    stamps'' and inserting ``supplemental nutrition
                    assistance program benefits''; and
                        (IV) in subparagraph (D), by striking ``food stamp
                    benefits'' and inserting ``supplemental nutrition
                    assistance program benefits'';

                (C) in subsection (c), by striking ``food stamps'' and
            inserting ``supplemental nutrition assistance'';
                (D) in subsection (d)--
                    (i) in paragraph (1)(B), by striking ``food stamp
                benefits'' and inserting ``supplemental nutrition
                assistance program benefits'';
                    (ii) in paragraph (2)--

                        (I) in subparagraph (A), by striking ``food stamp
                    allotments'' each place it appears and inserting
                    ``allotments''; and
                        (II) in subparagraph (C)(ii), by striking ``food
                    stamp benefit'' and inserting ``supplemental nutrition
                    assistance program benefits''; and

                    (iii) in paragraph (3)(E), by striking ``food stamp
                benefits'' and inserting ``supplemental nutrition
                assistance program benefits'';
                (E) in subsections (e) and (f), by striking ``food stamp
            benefits'' each place it appears and inserting ``supplemental
            nutrition assistance program benefits'';
                (F) in subsection (g), in the first sentence, by striking
            ``receipt of food stamp'' and inserting ``receipt of
            supplemental nutrition assistance program''; and
                (G) in subsection (j), by striking ``food stamp agencies''
            and inserting ``supplemental nutrition assistance program
            agencies''.
            (10) Section 18(a)(3)(A)(ii) of the Food and Nutrition Act of
        2008 (7 U.S.C. 2027(a)(3)(A)(ii)) is amended by striking ``food
        stamps'' and inserting ``supplemental nutrition assistance program
        benefits''.
            (11) Section 22 of the Food and Nutrition Act of 2008 (7 U.S.C.
        2031) is amended--
                (A) in the section heading, by striking ``food stamp
            portion of minnesota family investment plan'' and inserting
            ``minnesota family investment project'';
                (B) in subsections (b)(12) and (d)(3), by striking ``the
            Food Stamp Act, as amended,'' each place it appears and
            inserting ``this Act''; and
                (C) in subsection (g)(1), by striking ``the Food Stamp Act
            of 1977 (7 U.S.C. 2011 et seq.)'' and inserting ``this Act''.
            (12) Section 26 of the Food and Nutrition Act of 2008 (7 U.S.C.
        2035) is amended--
                (A) in the section heading, by striking ``simplified food
            stamp program'' and inserting ``simplified supplemental
            nutrition assistance program''; and
                (B) in subsection (b), by striking ``simplified food stamp
            program'' and inserting ``simplified supplemental nutrition
            assistance program''.
        (b) Conforming Cross-References.--
            (1) In general.--Each provision of law described in paragraph
        (2) is amended (as applicable)--
                (A) by striking ``food stamp program'' each place it
            appears and inserting ``supplemental nutrition assistance
            program'';
                (B) by striking ``Food Stamp Act of 1977'' each place it
            appears and inserting ``Food and Nutrition Act of 2008'';
                (C) by striking ``Food Stamp Act'' each place it appears
            and inserting ``Food and Nutrition Act of 2008'';
                (D) by striking ``food stamp'' each place it appears and
            inserting ``supplemental nutrition assistance program
            benefits'';
                (E) by striking ``food stamps'' each place it appears and
            inserting ``supplemental nutrition assistance program
            benefits'';
                (F) in each applicable title, subtitle, chapter,
            subchapter, and section heading, by striking ``food stamp act''
            each place it appears and inserting ``food and nutrition act of
            2008'';
                (G) in each applicable subsection and appropriations
            heading, by striking ``Food Stamp Act'' each place it appears
            and inserting ``Food and Nutrition Act of 2008'';
                (H) in each applicable heading other than a title,
            subtitle, chapter, subchapter, section, subsection, or
            appropriations heading, by striking ``food stamp act'' each
            place it appears and inserting ``food and nutrition act of
            2008'';
                (I) in each applicable title, subtitle, chapter,
            subchapter, and section heading, by striking ``food stamp
            program'' each place it appears and inserting ``supplemental
            nutrition assistance program'';
                (J) in each applicable subsection and appropriations
            heading, by striking ``Food Stamp Program'' each place it
            appears and inserting ``Supplemental Nutrition Assistance
            Program'';
                (K) in each applicable heading other than a title,
            subtitle, chapter, subchapter, section, subsection, or
            appropriations heading, by striking ``food stamp program'' each
            place it appears and inserting ``supplemental nutrition
            assistance program'';
                (L) in each applicable title, subtitle, chapter,
            subchapter, and section heading, by striking ``food stamps''
            each place it appears and inserting ``supplemental nutrition
            assistance program benefits'';
                (M) in each applicable subsection and appropriations
            heading, by striking ``Food Stamps'' each place it appears and
            inserting ``Supplemental Nutrition Assistance Program
            Benefits''; and
                (N) in each applicable heading other than a title,
            subtitle, chapter, subchapter, section, subsection, or
            appropriations heading, by striking ``food stamps'' each place
            it appears and inserting ``supplemental nutrition assistance
            program benefits''.
            (2) Provisions of law.--The provisions of law referred to in
        paragraph (1) are the following:
                (A) 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 2008 (7 U.S.C. 2011 et
    seq.) shall be considered to be a reference to the ``supplemental
    nutrition assistance program'' established under that Act.

                         PART II--BENEFIT IMPROVEMENTS

    SEC. 4101. EXCLUSION OF CERTAIN MILITARY PAYMENTS FROM INCOME.
        Section 5(d) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2014(d)) is amended--
            (1) by striking ``(d) Household'' and inserting ``(d)
        Exclusions From Income.--Household'';
            (2) by striking ``only (1) any'' and inserting ``only--
            ``(1) any'';
            (3) by indenting each of paragraphs (2) through (18) so as to
        align with the margin of paragraph (1) (as amended by paragraph
        (2));
            (4) by striking the comma at the end of each of paragraphs (1)
        through (16) and inserting a semicolon;
            (5) in paragraph (3)--
                (A) by striking ``like (A) awarded'' and inserting ``like--
                ``(A) awarded'';
                (B) by striking ``thereof, (B) to'' and inserting
            ``thereof;
                ``(B) to''; and
                (C) by striking ``program, and (C) to'' and inserting
            ``program; and
                ``(C) to'';
            (6) in paragraph (11), by striking ``)), or (B) a'' and
        inserting ``)); or
            ``(B) a'';
            (7) in paragraph (17), by striking ``, and'' at the end and
        inserting a semicolon;
            (8) in paragraph (18), by striking the period at the end and
        inserting ``; and''; and
            (9) by adding at the end the following:
            ``(19) any additional payment under chapter 5 of title 37,
        United States Code, or otherwise designated by the Secretary to be
        appropriate for exclusion under this paragraph, that is received by
        or from a member of the United States Armed Forces deployed to a
        designated combat zone, if the additional pay--
                ``(A) is the result of deployment to or service in a combat
            zone; and
                ``(B) was not received immediately prior to serving in a
            combat zone.''.
    SEC. 4102. STRENGTHENING THE FOOD PURCHASING POWER OF LOW-INCOME
    AMERICANS.
        Section 5(e)(1) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2014(e)(1)) is amended--
            (1) in subparagraph (A)(ii), by striking ``not less than $134''
        and all that follows through the end of the clause and inserting
        the following: ``not less than--

                        ``(I) for fiscal year 2009, $144, $246, $203, and
                    $127, respectively; and
                        ``(II) for fiscal year 2010 and each fiscal year
                    thereafter, an amount that is equal to the amount from
                    the previous fiscal year adjusted to the nearest lower
                    dollar increment to reflect changes for the 12-month
                    period ending on the preceding June 30 in the Consumer
                    Price Index for All Urban Consumers published by the
                    Bureau of Labor Statistics of the Department of Labor,
                    for items other than food.'';

            (2) in subparagraph (B)(ii), by striking ``not less than $269''
        and all that follows through the end of the clause and inserting
        the following: ``not less than--

                        ``(I) for fiscal year 2009, $289; and
                        ``(II) for fiscal year 2010 and each fiscal year
                    thereafter, an amount that is equal to the amount from
                    the previous fiscal year adjusted to the nearest lower
                    dollar increment to reflect changes for the 12-month
                    period ending on the preceding June 30 in the Consumer
                    Price Index for All Urban Consumers published by the
                    Bureau of Labor Statistics of the Department of Labor,
                    for items other than food.''; and

            (3) by adding at the end the following:
                ``(C) Requirement.--Each adjustment under subparagraphs
            (A)(ii)(II) and (B)(ii)(II) shall be based on the unrounded
            amount for the prior 12-month period.''.
    SEC. 4103. SUPPORTING WORKING FAMILIES WITH CHILD CARE EXPENSES.
        Section 5(e)(3)(A) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2014(e)(3)(A)) is amended by striking ``, the maximum allowable level
    of which shall be $200 per month for each dependent child under 2 years
    of age and $175 per month for each other dependent,''.
    SEC. 4104. ASSET INDEXATION, EDUCATION, AND RETIREMENT ACCOUNTS.
        (a) Adjusting Countable Resources for Inflation.--Section (5)(g) of
    the Food and Nutrition Act of 2008 (7 U.S.C. 2014(g)) is amended--
            (1) by striking ``(g)(1) The Secretary'' and inserting the
        following:
        ``(g) Allowable Financial Resources.--
            ``(1) Total amount.--
                ``(A) In general.--The Secretary''.
            (2) in subparagraph (A) (as so designated by paragraph (1))--
                (A) by inserting ``(as adjusted in accordance with
            subparagraph (B))'' after ``$2,000''; and
                (B) by inserting ``(as adjusted in accordance with
            subparagraph (B))'' after ``$3,000''; and
            (3) by adding at the end the following:
                ``(B) Adjustment for inflation.--
                    ``(i) In general.--Beginning on October 1, 2008, and
                each October 1 thereafter, the amounts specified in
                subparagraph (A) shall be adjusted and rounded down to the
                nearest $250 increment to reflect changes for the 12-month
                period ending the preceding June in the Consumer Price
                Index for All Urban Consumers published by the Bureau of
                Labor Statistics of the Department of Labor.
                    ``(ii) Requirement.--Each adjustment under clause (i)
                shall be based on the unrounded amount for the prior 12-
                month period.''.
        (b) Exclusion of Retirement Accounts From Allowable Financial
    Resources.--
            (1) In general.--Section 5(g)(2)(B)(v) of the Food and
        Nutrition Act of 2008 (7 U.S.C. 2014(g)(2)(B)(v)) is amended by
        striking ``or retirement account (including an individual
        account)'' and inserting ``account''.
            (2) Mandatory and discretionary exclusions.--Section 5(g) of
        the Food and Nutrition Act of 2008 (7 U.S.C. 2014(g)) is amended by
        adding at the end the following:
            ``(7) Exclusion of retirement accounts from allowable financial
        resources.--
                ``(A) Mandatory exclusions.--The Secretary shall exclude
            from financial resources under this subsection the value of--
                    ``(i) any funds in a plan, contract, or account,
                described in sections 401(a), 403(a), 403(b), 408, 408A,
                457(b), and 501(c)(18) of the Internal Revenue Code of 1986
                and the value of funds in a Federal Thrift Savings Plan
                account as provided in section 8439 of title 5, United
                States Code; and
                    ``(ii) any retirement program or account included in
                any successor or similar provision that may be enacted and
                determined to be exempt from tax under the Internal Revenue
                Code of 1986.
                ``(B) Discretionary exclusions.--The Secretary may exclude
            from financial resources under this subsection the value of any
            other retirement plans, contracts, or accounts (as determined
            by the Secretary).''.
        (c) Exclusion of Education Accounts From Allowable Financial
    Resources.--Section 5(g) of the Food and Nutrition Act of 2008 (7
    U.S.C. 2014(g)) (as amended by subsection (b)) is amended by adding at
    the end the following:
            ``(8) Exclusion of education accounts from allowable financial
        resources.--
                ``(A) Mandatory exclusions.--The Secretary shall exclude
            from financial resources under this subsection the value of any
            funds in a qualified tuition program described in section 529
            of the Internal Revenue Code of 1986 or in a Coverdell
            education savings account under section 530 of that Code.
                ``(B) Discretionary exclusions.--The Secretary may exclude
            from financial resources under this subsection the value of any
            other education programs, contracts, or accounts (as determined
            by the Secretary).''.
    SEC. 4105. FACILITATING SIMPLIFIED REPORTING.
        Section 6(c)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2015(c)(1)(A)) is amended--
            (1) by striking ``reporting by'' and inserting ``reporting'';
            (2) in clause (i), by inserting ``for periods shorter than 4
        months by'' before ``migrant'';
            (3) in clause (ii), by inserting ``for periods shorter than 4
        months by'' before ``households''; and
            (4) in clause (iii), by inserting ``for periods shorter than 1
        year by'' before ``households''.
    SEC. 4106. TRANSITIONAL BENEFITS OPTION.
        Section 11(s)(1) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2020(s)(1)) is amended--
            (1) by striking ``benefits to a household''; and inserting
        ``benefits--
                ``(A) to a household'';
            (2) by striking the period at the end and inserting ``; or'';
        and
            (3) by adding at the end the following:
                ``(B) at the option of the State, to a household with
            children that ceases to receive cash assistance under a State-
            funded public assistance program.''.
    SEC. 4107. INCREASING THE MINIMUM BENEFIT.
        Section 8(a) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2017(a)) is amended by striking ``$10 per month'' and inserting ``8
    percent of the cost of the thrifty food plan for a household containing
    1 member, as determined by the Secretary under section 3, rounded to
    the nearest whole dollar increment''.
    SEC. 4108. EMPLOYMENT, TRAINING, AND JOB RETENTION.
        Section 6(d)(4) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2015(d)(4)) is amended--
            (1) in subparagraph (B)--
                (A) by redesignating clause (vii) as clause (viii); and
                (B) by inserting after clause (vi) the following:
                    ``(vii) Programs intended to ensure job retention by
                providing job retention services, if the job retention
                services are provided for a period of not more than 90 days
                after an individual who received employment and training
                services under this paragraph gains employment.''; and
            (2) in subparagraph (F), by adding at the end the following:
                    ``(iii) Any individual voluntarily electing to
                participate in a program under this paragraph shall not be
                subject to the limitations described in clauses (i) and
                (ii).''.

                          PART III--PROGRAM OPERATIONS

    SEC. 4111. NUTRITION EDUCATION.
        (a) Authority to Provide Nutrition Education.--Section 4(a) of the
    Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)) is amended in the
    first sentence by inserting ``and, through an approved State plan,
    nutrition education'' after ``an allotment''.
        (b) Implementation.--Section 11 of the Food and Nutrition Act of
    2008 (7 U.S.C. 2020) is amended by striking subsection (f) and
    inserting the following:
        ``(f) Nutrition Education.--
            ``(1) In general.--State agencies may implement a nutrition
        education program for individuals eligible for program benefits
        that promotes healthy food choices consistent with the most recent
        Dietary Guidelines for Americans published under section 301 of the
        National Nutrition Monitoring and Related Research Act of 1990 (7
        U.S.C. 5341).
            ``(2) Delivery of nutrition education.--State agencies may
        deliver nutrition education directly to eligible persons or through
        agreements with the National Institute of Food and Agriculture,
        including through the expanded food and nutrition education program
        under section 3(d) of the Act of May 8, 1914 (7 U.S.C. 343(d)), and
        other State and community health and nutrition providers and
        organizations.
            ``(3) Nutrition education state plans.--
                ``(A) In general.--A State agency that elects to provide
            nutrition education under this subsection shall submit a
            nutrition education State plan to the Secretary for approval.
                ``(B) Requirements.--The plan shall--
                    ``(i) identify the uses of the funding for local
                projects; and
                    ``(ii) conform to standards established by the
                Secretary through regulations or guidance.
                ``(C) Reimbursement.--State costs for providing nutrition
            education under this subsection shall be reimbursed pursuant to
            section 16(a).
            ``(4) Notification.--To the maximum extent practicable, State
        agencies shall notify applicants, participants, and eligible
        program participants of the availability of nutrition education
        under this subsection.''.
    SEC. 4112. TECHNICAL CLARIFICATION REGARDING ELIGIBILITY.
        Section 6(k) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2015(k)) is amended--
            (1) by redesignating paragraphs (1) and (2) as subparagraphs
        (A) and (B), respectively, and indenting appropriately;
            (2) by striking ``No member'' and inserting the following:
            ``(1) In general.--No member''; and
            (3) by adding at the end the following:
            ``(2) Procedures.--The Secretary shall--
                ``(A) define the terms `fleeing' and `actively seeking' for
            purposes of this subsection; and
                ``(B) ensure that State agencies use consistent procedures
            established by the Secretary that disqualify individuals whom
            law enforcement authorities are actively seeking for the
            purpose of holding criminal proceedings against the
            individual.''.
    SEC. 4113. CLARIFICATION OF SPLIT ISSUANCE.
        Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2016(h)) is amended by striking paragraph (2) and inserting the
    following:
            ``(2) Requirements.--
                ``(A) In general.--Any procedure established under
            paragraph (1) shall--
                    ``(i) not reduce the allotment of any household for any
                period; and
                    ``(ii) ensure that no household experiences an interval
                between issuances of more than 40 days.
                ``(B) Multiple issuances.--The procedure may include
            issuing benefits to a household in more than 1 issuance during
            a month only when a benefit correction is necessary.''.
    SEC. 4114. ACCRUAL OF BENEFITS.
        Section 7(i) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2016(i)) is amended by adding at the end the following:
            ``(12) Recovering electronic benefits.--
                ``(A) 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. 4115. ISSUANCE AND USE OF PROGRAM BENEFITS.
        (a) In General.--Section 7 of the Food and Nutrition Act of 2008 (7
    U.S.C. 2016) is amended--
            (1) by striking the section designation and heading and all
        that follows through ``subsection (j)) shall be'' and inserting the
        following:
    ``SEC. 7. ISSUANCE AND USE OF PROGRAM BENEFITS.
        ``(a) In General.--Except as provided in subsection (i), EBT cards
    shall be'';
            (2) in subsection (b)--
                (A) by striking ``(b) Coupons'' and inserting the
            following:
        ``(b) Use.--Benefits''; and
                (B) by striking the second proviso;
            (3) in subsection (c)--
                (A) by striking ``(c) Coupons'' and inserting the
            following:
        ``(c) Design.--
            ``(1) In general.--EBT cards'';
                (B) in the first sentence, by striking ``and define their
            denomination''; and
                (C) by striking the second sentence and inserting the
            following:
            ``(2) Prohibition.--The name of any public official shall not
        appear on any EBT card.'';
            (4) by striking subsection (d);
            (5) in subsection (e)--
                (A) by striking ``coupons'' each place it appears and
            inserting ``benefits''; and
                (B) by striking ``coupon issuers'' each place it appears
            and inserting ``benefit issuers'';
            (6) in subsection (f)--
                (A) by striking ``coupons'' each place it appears and
            inserting ``benefits'';
                (B) by striking ``coupon issuer'' and inserting ``benefit
            issuers'';
                (C) by striking ``including any losses'' and all that
            follows through ``section 11(e)(20),''; and
                (D) by striking ``and allotments'';
            (7) by striking subsection (g) and inserting the following:
        ``(g) Alternative Benefit Delivery.--
            ``(1) In general.--If the Secretary determines, in consultation
        with the Inspector General of the Department of Agriculture, that
        it would improve the integrity of the supplemental nutrition
        assistance program, the Secretary shall require a State agency to
        issue or deliver benefits using alternative methods.
            ``(2) No imposition of costs.--The cost of documents or systems
        that may be required by this subsection may not be imposed upon a
        retail food store participating in the supplemental nutrition
        assistance program.
            ``(3) Devaluation and termination of issuance of paper
        coupons.--
                ``(A) Coupon issuance.--Effective on the date of enactment
            of the Food, Conservation, and Energy Act of 2008, no State
            shall issue any coupon, stamp, certificate, or authorization
            card to a household that receives supplemental nutrition
            assistance under this Act.
                ``(B) Ebt cards.--Effective beginning on the date that is 1
            year after the date of enactment of the Food, Conservation, and
            Energy Act of 2008, only an EBT card issued under subsection
            (i) shall be eligible for exchange at any retail food store.
                ``(C) De-obligation of coupons.--Coupons not redeemed
            during the 1-year period beginning on the date of enactment of
            the Food, Conservation, and Energy Act of 2008 shall--
                    ``(i) no longer be an obligation of the Federal
                Government; and
                    ``(ii) not be redeemable.'';
            (8) in subsection (h)(1), by striking ``coupons'' and inserting
        ``benefits'';
            (9) in subsection (i), by adding at the end the following:
            ``(12) Interchange fees.--No interchange fees shall apply to
        electronic benefit transfer transactions under this subsection.'';
            (10) in subsection (j)--
                (A) in paragraph (2)(A)(ii), by striking ``printing,
            shipping, and redeeming coupons'' and inserting ``issuing and
            redeeming benefits''; and
                (B) in paragraph (5), by striking ``coupon'' and inserting
            ``benefit'';
            (11) in subsection (k)--
                (A) by striking ``coupons in the form of'' each place it
            appears and inserting ``program benefits in the form of'';
                (B) by striking ``a coupon issued in the form of'' each
            place it appears and inserting ``program benefits in the form
            of''; and
                (C) in subparagraph (A), by striking ``subsection
            (i)(11)(A)'' and inserting ``subsection (h)(11)(A)''; and
            (12) by redesignating subsections (e) through (k) as
        subsections (d) through (j), respectively.
        (b) Conforming Amendments.--
            (1) Section 3 of the Food and Nutrition Act of 2008 (7 U.S.C.
        2012) is amended--
                (A) in subsection (a), by striking ``coupons'' and
            inserting ``benefits'';
                (B) by striking subsection (b) and inserting the following:
        ``(b) Benefit.--The term `benefit' means the value of supplemental
    nutrition assistance provided to a household by means of--
            ``(1) an electronic benefit transfer under section 7(i); or
            ``(2) other means of providing assistance, as determined by the
        Secretary.'';
                (C) in subsection (c), in the first sentence, by striking
            ``authorization cards'' and inserting ``benefits'';
                (D) in subsection (d), by striking ``or access device'' and
            all that follows through the end of the subsection and
            inserting a period;
                (E) in subsection (e)--
                    (i) by striking ``(e) `Coupon issuer' means'' and
                inserting the following:
        ``(e) Benefit Issuer.--The term `benefit issuer' means''; and
                    (ii) by striking ``coupons'' and inserting
                ``benefits'';
                (F) in subsection (g)(7), by striking ``subsection (r)''
            and inserting ``subsection (j)'';
                (G) in subsection (i)(5)--
                    (i) in subparagraph (B), by striking ``subsection (r)''
                and inserting ``subsection (j)''; and
                    (ii) in subparagraph (D), by striking ``coupons'' and
                inserting ``benefits'';
                (H) in subsection (j), by striking ``(as that term is
            defined in subsection (p))'';
                (I) in subsection (k)--
                    (i) in paragraph (1)(A), by striking ``subsection
                (u)(1)'' and inserting ``subsection (r)(1)'';
                    (ii) in paragraph (2), by striking ``subsections
                (g)(3), (4), (5), (7), (8), and (9) of this section'' and
                inserting ``paragraphs (3), (4), (5), (7), (8), and (9) of
                subsection (k)''; and
                    (iii) in paragraph (3), by striking ``subsection (g)(6)
                of this section'' and inserting ``subsection (k)(6)'';
                (J) in subsection (t), by inserting ``, including point of
            sale devices,'' after ``other means of access'';
                (K) in subsection (u), by striking ``(as defined in
            subsection (g))'';
                (L) by adding at the end the following:
        ``(v) EBT Card.--The term `EBT card' means an electronic benefit
    transfer card issued under section 7(i).''; and
                (M) by redesignating subsections (a) through (v) as
            subsections (b), (d), (f), (g), (e), (h), (k), (l), (n), (o),
            (p), (q), (s), (t), (u), (v), (c), (j), (m), (a), (r), and (i),
            respectively, and moving the subsections so as to appear in
            alphabetical order.
            (2) Section 4(a) of the Food and Nutrition Act of 2008 (7
        U.S.C. 2013(a)) is amended--
                (A) by striking ``coupons'' each place it appears and
            inserting ``benefits''; and
                (B) by striking ``Coupons issued'' and inserting ``benefits
            issued''.
            (3) Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C.
        2014) is amended--
                (A) in subsection (a), by striking ``section 3(i)(4)'' and
            inserting ``section 3(n)(4)'';
                (B) in subsection (h)(3)(B), in the second sentence, by
            striking ``section 7(i)'' and inserting ``section 7(h)''; and
                (C) in subsection (i)(2)(E), by striking ``, as defined in
            section 3(i) of this Act,''.
            (4) Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C.
        2015) is amended--
                (A) in subsection (b)(1)--
                    (i) in subparagraph (B), by striking ``coupons or
                authorization cards'' and inserting ``program benefits'';
                and
                    (ii) by striking ``coupons'' each place it appears and
                inserting ``benefits''; and
                (B) in subsection (d)(4)(L), by striking ``section
            11(e)(22)'' and inserting ``section 11(e)(19)''.
            (5) Section 8 of the Food and Nutrition Act of 2008 (7 U.S.C.
        2017) is amended--
                (A) in subsection (b), by striking ``, whether through
            coupons, access devices, or otherwise''; and
                (B) in subsections (e)(1) and (f), by striking ``section
            3(i)(5)'' each place it appears and inserting ``section
            3(n)(5)''.
            (6) Section 9 of the Food and Nutrition Act of 2008 (7 U.S.C.
        2018) is amended--
                (A) by striking ``coupons'' each place it appears and
            inserting ``benefits'';
                (B) in subsection (a)--
                    (i) in paragraph (1), by striking ``coupon business''
                and inserting ``benefit transactions''; and
                    (ii) by striking paragraph (3) and inserting the
                following:
            ``(3) Authorization periods.--The Secretary shall establish
        specific time periods during which authorization to accept and
        redeem benefits shall be valid under the supplemental nutrition
        assistance program.''; and
                (C) in subsection (g), by striking ``section 3(g)(9)'' and
            inserting ``section 3(k)(9)''.
            (7) Section 10 of the Food and Nutrition Act of 2008 (7 U.S.C.
        2019) is amended--
                (A) by striking the section designation and heading and all
            that follows through ``Regulations'' and inserting the
            following:
      ``SEC. 10. REDEMPTION OF PROGRAM BENEFITS.
        ``Regulations'';
                (B) by striking ``section 3(k)(4) of this Act'' and
            inserting ``section 3(p)(4)'';
                (C) by striking ``section 7(i)'' and inserting ``section
            7(h)''; and
                (D) by striking ``coupons'' each place it appears and
            inserting ``benefits''.
            (8) Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C.
        2020) is amended--
                (A) in subsection (d)--
                    (i) by striking ``section 3(n)(1) of this Act'' each
                place it appears and inserting ``section 3(t)(1)''; and
                    (ii) by striking ``section 3(n)(2) of this Act'' each
                place it appears and inserting ``section 3(t)(2)'';
                (B) in subsection (e)--
                    (i) in paragraph (8)(E), by striking ``paragraph (16)
                or (20)(B)'' and inserting ``paragraph (15) or (18)(B)'';
                    (ii) by striking paragraphs (15) and (19);
                    (iii) by redesignating paragraphs (16) through (18) and
                (20) through (25) as paragraphs (15) through (17) and (18)
                through (23), respectively; and
                    (iv) in paragraph (17) (as so redesignated), by
                striking ``(described in section 3(n)(1) of this Act)'' and
                inserting ``described in section 3(t)(1)'';
                (C) in subsection (h), by striking ``coupon or coupons''
            and inserting ``benefits'';
                (D) by striking ``coupon'' each place it appears and
            inserting ``benefit'';
                (E) by striking ``coupons'' each place it appears and
            inserting ``benefits''; and
                (F) in subsection (q), by striking ``section 11(e)(20)(B)''
            and inserting ``subsection (e)(18)(B)''.
            (9) Section 13 of the Food and Nutrition Act of 2008 (7 U.S.C.
        2022) is amended by striking ``coupons'' each place it appears and
        inserting ``benefits''.
            (10) Section 15 of the Food and Nutrition Act of 2008 (7 U.S.C.
        2024) is amended--
                (A) in subsection (a), by striking ``coupons'' and
            inserting ``benefits'';
                (B) in subsection (b)(1)--
                    (i) by striking ``coupons, authorization cards, or
                access devices'' each place it appears and inserting
                ``benefits'';
                    (ii) by striking ``coupons or authorization cards'' and
                inserting ``benefits''; and
                    (iii) by striking ``access device'' each place it
                appears and inserting ``benefit'';
                (C) in subsection (c), by striking ``coupons'' each place
            it appears and inserting ``benefits'';
                (D) in subsection (d), by striking ``Coupons'' and
            inserting ``Benefits'';
                (E) by striking subsections (e) and (f);
                (F) by redesignating subsections (g) and (h) as subsections
            (e) and (f), respectively; and
                (G) in subsection (e) (as so redesignated), by striking
            ``coupon, authorization cards or access devices'' and inserting
            ``benefits''.
            (11) Section 16(a) of the Food and Nutrition Act of 2008 (7
        U.S.C. 2025(a)) is amended by striking ``coupons'' each place it
        appears and inserting ``benefits''.
            (12) Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C.
        2026) is amended--
                (A) in subsection (a)(2), by striking ``coupon'' and
            inserting ``benefit'';
                (B) in subsection (b)(1)--
                    (i) in subparagraph (B)--

                        (I) in clause (iv)--

                            (aa) in subclause (I), inserting ``or otherwise
                        providing benefits in a form not restricted to the
                        purchase of food'' after ``of cash'';
                            (bb) in subclause (III)(aa), by striking
                        ``section 3(i)'' and inserting ``section 3(n)'';
                        and
                            (cc) in subclause (VII), by striking ``section
                        7(j)'' and inserting ``section 7(i)''; and

                        (II) in clause (v)--

                            (aa) by striking ``countersigned food coupons
                        or similar''; and
                            (bb) by striking ``food coupons'' and inserting
                        ``EBT cards''; and
                    (ii) in subparagraph (C)(i)(I), by striking ``coupons''
                and inserting ``EBT cards'';
                (C) in subsection (f), by striking ``section 7(g)(2)'' and
            inserting ``section 7(f)(2)''; and
                (D) in subsection (j), by striking ``coupon'' and inserting
            ``benefit''.
            (13) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act of
        2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking ``section
        3(o)(4)'' and inserting ``section 3(u)(4)''.
            (14) Section 21 of the Food and Nutrition Act of 2008 (7 U.S.C.
        2030) is repealed.
            (15) Section 22 of the Food and Nutrition Act of 2008 (7 U.S.C.
        2031) is amended--
                (A) by striking ``food coupons'' each place it appears and
            inserting ``benefits'';
                (B) by striking ``coupons'' each place it appears and
            inserting ``benefits''; and
                (C) in subsection (g)(1)(A), by striking ``coupon'' and
            inserting ``benefits''.
            (16) Section 26(f)(3) of the Food and Nutrition Act of 2008 (7
        U.S.C. 2035(f)(3)) is amended--
                (A) in subparagraph (A), by striking ``subsections (a)
            through (g)'' and inserting ``subsections (a) through (f)'';
            and
                (B) in subparagraph (E), by striking ``(16), (18), (20),
            (24), and (25)'' and inserting ``(15), (17), (18), (22), and
            (23)''.
        (c) Conforming Cross-References.--
            (1) In general.--
                (A) Use of terms.--Each provision of law described in
            subparagraph (B) is amended (as applicable)--
                    (i) 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 2008 (7 U.S.C. 2011 et seq.) shall be considered to be a
    reference to a ``benefit'' provided under that Act.
    SEC. 4116. REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN.
        Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 2020) is
    amended by striking the section enumerator and heading and subsection
    (a) and inserting the following:
      ``SEC. 11. ADMINISTRATION.
        ``(a) State Responsibility.--
            ``(1) In general.--The State agency of each participating State
        shall have responsibility for certifying applicant households and
        issuing EBT cards.
            ``(2) Local administration.--The responsibility of the agency
        of the State government shall not be affected by whether the
        program is operated on a State-administered or county-administered
        basis, as provided under section 3(t)(1).
            ``(3) Records.--
                ``(A) In general.--Each State agency shall keep such
            records as may be necessary to determine whether the program is
            being conducted in compliance with this Act (including
            regulations issued under this Act).
                ``(B) Inspection and audit.--Records described in
            subparagraph (A) shall--
                    ``(i) be available for inspection and audit at any
                reasonable time;
                    ``(ii) subject to subsection (e)(8), be available for
                review in any action filed by a household to enforce any
                provision of this Act (including regulations issued under
                this Act); and
                    ``(iii) be preserved for such period of not less than 3
                years as may be specified in regulations.
            ``(4) Review of major changes in program design.--
                ``(A) In general.--The Secretary shall develop standards
            for identifying major changes in the operations of a State
            agency, including--
                    ``(i) large or substantially-increased numbers of low-
                income households that do not live in reasonable proximity
                to an office performing the major functions described in
                subsection (e);
                    ``(ii) substantial increases in reliance on automated
                systems for the performance of responsibilities previously
                performed by personnel described in subsection (e)(6)(B);
                    ``(iii) changes that potentially increase the
                difficulty of reporting information under subsection (e) or
                section 6(c); and
                    ``(iv) changes that may disproportionately increase the
                burdens on any of the types of households described in
                subsection (e)(2)(A).
                ``(B) Notification.--If a State agency implements a major
            change in operations, the State agency shall--
                    ``(i) notify the Secretary; and
                    ``(ii) collect such information as the Secretary shall
                require to identify and correct any adverse effects on
                program integrity or access, including access by any of the
                types of households described in subsection (e)(2)(A).''.
    SEC. 4117. CIVIL RIGHTS COMPLIANCE.
        Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 2020) is
    amended by striking subsection (c) and inserting the following:
        ``(c) Civil Rights Compliance.--
            ``(1) In general.--In the certification of applicant households
        for the supplemental nutrition assistance program, there shall be
        no discrimination by reason of race, sex, religious creed, national
        origin, or political affiliation.
            ``(2) Relation to other laws.--The administration of the
        program by a State agency shall be consistent with the rights of
        households under the following laws (including implementing
        regulations):
                ``(A) The Age Discrimination Act of 1975 (42 U.S.C. 6101 et
            seq.).
                ``(B) Section 504 of the Rehabilitation Act of 1973 (29
            U.S.C. 794).
                ``(C) The Americans with Disabilities Act of 1990 (42
            U.S.C. 12101 et seq.).
                ``(D) Title VI of the Civil Rights Act of 1964 (42 U.S.C.
            2000d et seq.).''.
    SEC. 4118. CODIFICATION OF ACCESS RULES.
        Section 11(e)(1) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2020(e)(1)) is amended--
            (1) by striking ``shall (A) at'' and inserting ``shall--
                ``(A) at''; and
            (2) by striking ``and (B) use'' and inserting ``and
                ``(B) comply with regulations of the Secretary requiring
            the use of''.
    SEC. 4119. STATE OPTION FOR TELEPHONIC SIGNATURE.
        Section 11(e)(2)(C) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2020(e)(2)(C)) is amended--
            (1) by striking ``(C) Nothing in this Act'' and inserting the
        following:
                ``(C) Electronic and automated systems.--
                    ``(i) In general.--Nothing in this Act''; and
            (2) by adding at the end the following:
                    ``(ii) State option for telephonic signature.--A State
                agency may establish a system by which an applicant
                household may sign an application through a recorded verbal
                assent over the telephone.
                    ``(iii) Requirements.--A system established under
                clause (ii) shall--

                        ``(I) record for future reference the verbal assent
                    of the household member and the information to which
                    assent was given;
                        ``(II) include effective safeguards against
                    impersonation, identity theft, and invasions of
                    privacy;
                        ``(III) not deny or interfere with the right of the
                    household to apply in writing;
                        ``(IV) promptly provide to the household member a
                    written copy of the completed application, with
                    instructions for a simple procedure for correcting any
                    errors or omissions;
                        ``(V) comply with paragraph (1)(B);
                        ``(VI) satisfy all requirements for a signature on
                    an application under this Act and other laws applicable
                    to the supplemental nutrition assistance program, with
                    the date on which the household member provides verbal
                    assent considered as the date of application for all
                    purposes; and
                        ``(VII) comply with such other standards as the
                    Secretary may establish.''.

    SEC. 4120. PRIVACY PROTECTIONS.
        Section 11(e)(8) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2020(e)(8)) is amended--
            (1) in the matter preceding subparagraph (A)--
                (A) by striking ``limit'' and inserting ``prohibit''; and
                (B) by striking ``to persons'' and all that follows through
            ``State programs'';
            (2) by redesignating subparagraphs (A) through (E) as
        subparagraphs (B) through (F), respectively;
            (3) by inserting before subparagraph (B) (as so redesignated)
        the following:
                ``(A) the safeguards shall permit--
                    ``(i) the disclosure of such information to persons
                directly connected with the administration or enforcement
                of the provisions of this Act, regulations issued pursuant
                to this Act, Federal assistance programs, or federally-
                assisted State programs; and
                    ``(ii) the subsequent use of the information by persons
                described in clause (i) only for such administration or
                enforcement;''; and
            (4) in subparagraph (F) (as so redesignated) by inserting ``or
        subsection (u)'' before the semicolon at the end.
    SEC. 4121. PRESERVATION OF ACCESS AND PAYMENT ACCURACY.
        Section 16 of the Food and Nutrition Act of 2008 (7 U.S.C. 2025) is
    amended by striking subsection (g) and inserting the following:
        ``(g) Cost Sharing for Computerization.--
            ``(1) In general.--Except as provided in paragraphs (2) and
        (3), the Secretary is authorized to pay to each State agency the
        amount provided under subsection (a)(6) for the costs incurred by
        the State agency in the planning, design, development, or
        installation of 1 or more automatic data processing and information
        retrieval systems that the Secretary determines--
                ``(A) would assist in meeting the requirements of this Act;
                ``(B) meet such conditions as the Secretary prescribes;
                ``(C) are likely to provide more efficient and effective
            administration of the supplemental nutrition assistance
            program;
                ``(D) would be compatible with other systems used in the
            administration of State programs, including the program funded
            under part A of title IV of the Social Security Act (42 U.S.C.
            601 et seq.);
                ``(E) would be tested adequately before and after
            implementation, including through pilot projects in limited
            areas for major systems changes as determined under rules
            promulgated by the Secretary, data from which shall be
            thoroughly evaluated before the Secretary approves the system
            to be implemented more broadly; and
                ``(F) would be operated in accordance with an adequate plan
            for--
                    ``(i) continuous updating to reflect changed policy and
                circumstances; and
                    ``(ii) testing the effect of the system on access for
                eligible households and on payment accuracy.
            ``(2) Limitation.--The Secretary shall not make payments to a
        State agency under paragraph (1) to the extent that the State
        agency--
                ``(A) is reimbursed for the costs under any other Federal
            program; or
                ``(B) uses the systems for purposes not connected with the
            supplemental nutrition assistance program.''.
    SEC. 4122. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.
        Section 16(h)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2025(h)(1)(A)) is amended in subparagraph (A), by striking ``to remain
    available until expended'' and inserting ``to remain available for 15
    months''.

                           PART IV--PROGRAM INTEGRITY

    SEC. 4131. ELIGIBILITY DISQUALIFICATION.
        Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C. 2015) is
    amended by adding at the end the following:
        ``(p) Disqualification for Obtaining Cash by Destroying Food and
    Collecting Deposits.--Subject to any requirements established by the
    Secretary, any person who has been found by a State or Federal court or
    administrative agency in a hearing under subsection (b) to have
    intentionally obtained cash by purchasing products with supplemental
    nutrition assistance program benefits that have containers that require
    return deposits, discarding the product, and returning the container
    for the deposit amount shall be ineligible for benefits under this Act
    for such period of time as the Secretary shall prescribe by regulation.
        ``(q) Disqualification for Sale of Food Purchased With Supplemental
    Nutrition Assistance Program Benefits.--Subject to any requirements
    established by the Secretary, any person who has been found by a State
    or Federal court or administrative agency in a hearing under subsection
    (b) to have intentionally sold any food that was purchased using
    supplemental nutrition assistance program benefits shall be ineligible
    for benefits under this Act for such period of time as the Secretary
    shall prescribe by regulation.''.
    SEC. 4132. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD STORES
    AND WHOLESALE FOOD CONCERNS.
        Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C. 2021) is
    amended--
            (1) by striking the section designation and heading and all
        that follows through the end of subsection (a) and inserting the
        following:
      ``SEC. 12. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD STORES
          AND WHOLESALE FOOD CONCERNS.
        ``(a) Disqualification.--
            ``(1) In general.--An approved retail food store or wholesale
        food concern that violates a provision of this Act or a regulation
        under this Act may be--
                ``(A) disqualified for a specified period of time from
            further participation in the supplemental nutrition assistance
            program;
                ``(B) assessed a civil penalty of up to $100,000 for each
            violation; or
                ``(C) both.
            ``(2) Regulations.--Regulations promulgated under this Act
        shall provide criteria for the finding of a violation of, the
        suspension or disqualification of and the assessment of a civil
        penalty against a retail food store or wholesale food concern on
        the basis of evidence that may include facts established through
        on-site investigations, inconsistent redemption data, or evidence
        obtained through a transaction report under an electronic benefit
        transfer system.'';
            (2) in subsection (b)--
                (A) by striking ``(b) Disqualification'' and inserting the
            following:
        ``(b) Period of Disqualification.--Subject to subsection (c), a
    disqualification'';
                (B) in paragraph (1), by striking ``of no less than six
            months nor more than five years'' and inserting ``not to exceed
            5 years'';
                (C) in paragraph (2), by striking ``of no less than twelve
            months nor more than ten years'' and inserting ``not to exceed
            10 years'';
                (D) in paragraph (3)(B)--
                    (i) by inserting ``or a finding of the unauthorized
                redemption, use, transfer, acquisition, alteration, or
                possession of EBT cards'' after ``concern'' the first place
                it appears; and
                    (ii) by striking ``civil money penalties'' and
                inserting ``civil penalties''; and
                (E) by striking ``civil money penalty'' each place it
            appears and inserting ``civil penalty'';
            (3) in subsection (c)--
                (A) by striking ``(c) The action'' and inserting the
            following:
        ``(c) Civil Penalty and Review of Disqualification and Penalty
    Determinations.--
            ``(1) Civil penalty.--In addition to a disqualification under
        this section, the Secretary may assess a civil penalty in an amount
        not to exceed $100,000 for each violation.
            ``(2) Review.--The action''; and
                (B) in paragraph (2) (as designated by subparagraph (A)),
            by striking ``civil money penalty'' and inserting ``civil
            penalty'';
            (4) in subsection (d)--
                (A) by striking ``(d)'' and all that follows through ``.
            The Secretary shall'' and inserting the following:
        ``(d) Conditions of Authorization.--
            ``(1) In general.--As a condition of authorization to accept
        and redeem benefits, the Secretary may require a retail food store
        or wholesale food concern that, pursuant to subsection (a), has
        been disqualified for more than 180 days, or has been subjected to
        a civil penalty in lieu of a disqualification period of more than
        180 days, to furnish a collateral bond or irrevocable letter of
        credit for a period of not more than 5 years 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 section 15(g); or
                ``(ii) if the program disqualification is not upheld, shall
            be released to the retail food store or wholesale food concern.
            ``(3) No liability for interest.--The Secretary shall not be
        liable for the value of any interest on funds suspended under this
        subsection.''.
    SEC. 4133. MAJOR SYSTEMS FAILURES.
        Section 13(b) of the Food and Nutrition Act of 2008 (7 U.S.C.
    2022(b)) is amended by adding at the end the following:
            ``(5) Overissuances caused by systemic state errors.--
                ``(A) In general.--If the Secretary determines that a State
            agency overissued benefits to a substantial number of
            households in a fiscal year as a result of a major systemic
            error by the State agency, as defined by the Secretary, the
            Secretary may prohibit the State agency from collecting these
            overissuances from some or all households.
                ``(B) Procedures.--
                    ``(i) Information reporting by states.--Every State
                agency shall provide to the Secretary all information
                requested by the Secretary concerning the issuance of
                benefits to households by the State agency in the
                applicable fiscal year.
                    ``(ii) Final determination.--After reviewing relevant
                information provided by a State agency, the Secretary shall
                make a final determination--

                        ``(I) whether the State agency overissued benefits
                    to a substantial number of households as a result of a
                    systemic error in the applicable fiscal year; and
                        ``(II) as to the amount of the overissuance in the
                    applicable fiscal year for which the State agency is
                    liable.

                    ``(iii) Establishing a claim.--Upon determining under
                clause (ii) that a State agency has overissued benefits to
                households due to a major systemic error determined under
                subparagraph (A), the Secretary shall establish a claim
                against the State agency equal to the value of the
                overissuance caused by the systemic error.
                    ``(iv) Administrative and judicial review.--
                Administrative and judicial review, as provided in section
                14, shall apply to the final determinations by the
                Secretary under clause (ii).
                    ``(v) Remission to the secretary.--

                        ``(I) Determination not appealed.--If the
                    determination of the Secretary under clause (ii) is not
                    appealed, the State agency shall, as soon as
                    practicable, remit to the Secretary the dollar amount
                    specified in the claim under clause (iii).
                        ``(II) Determination appealed.--If the
                    determination of the Secretary under clause (ii) is
                    appealed, upon completion of administrative and
                    judicial review under clause (iv), and a finding of
                    liability on the part of the State, the appealing State
                    agency shall, as soon as practicable, remit to the
                    Secretary a dollar amount subject to the finding made
                    in the administrative and judicial review.

                    ``(vi) Alternative method of collection.--

                        ``(I) In general.--If a State agency fails to make
                    a payment under clause (v) within a reasonable period
                    of time, as determined by the Secretary, the Secretary
                    may reduce any amount due to the State agency under any
                    other provision of this Act by the amount due.
                        ``(II) Accrual of interest.--During the period of
                    time determined by the Secretary to be reasonable under
                    subclause (I), interest in the amount owed shall not
                    accrue.

                    ``(vii) Limitation.--Any liability amount established
                under section 16(c)(1)(C) shall be reduced by the amount of
                the claim established under this subparagraph.''.

                             PART V--MISCELLANEOUS

    SEC. 4141. PILOT PROJECTS TO EVALUATE HEALTH AND NUTRITION PROMOTION IN
    THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.
        Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 2026) is
    amended by adding at the end the following:
        ``(k) Pilot Projects to Evaluate Health and Nutrition Promotion in
    the Supplemental Nutrition Assistance Program.--
            ``(1) In general.--The Secretary shall carry out, under such
        terms and conditions as the Secretary considers to be appropriate,
        pilot projects to develop and test methods--
                ``(A) of using the supplemental nutrition assistance
            program to improve the dietary and health status of households
            eligible for or participating in the supplemental nutrition
            assistance program; and
                ``(B) to reduce overweight, obesity (including childhood
            obesity), and associated co-morbidities in the United States.
            ``(2) Grants.--
                ``(A) In general.--In carrying out this subsection, the
            Secretary may enter into competitively awarded contracts or
            cooperative agreements with, or provide grants to, public or
            private organizations or agencies (as defined by the
            Secretary), for use in accordance with projects that meet the
            strategy goals of this subsection.
                ``(B) Application.--To be eligible to receive a contract,
            cooperative agreement, or grant under this paragraph, an
            organization shall submit to the Secretary an application at
            such time, in such manner, and containing such information as
            the Secretary may require.
                ``(C) Selection criteria.--Pilot projects shall be
            evaluated against publicly disseminated criteria that may
            include--
                    ``(i) identification of a low-income target audience
                that corresponds to individuals living in households with
                incomes at or below 185 percent of the poverty level;
                    ``(ii) incorporation of a scientifically based strategy
                that is designed to improve diet quality through more
                healthful food purchases, preparation, or consumption;
                    ``(iii) a commitment to a pilot project that allows for
                a rigorous outcome evaluation, including data collection;
                    ``(iv) strategies to improve the nutritional value of
                food served during school hours and during after-school
                hours;
                    ``(v) innovative ways to provide significant
                improvement to the health and wellness of children;
                    ``(vi) other criteria, as determined by the Secretary.
                ``(D) Use of funds.--Funds provided under this paragraph
            shall not be used for any project that limits the use of
            benefits under this Act.
            ``(3) Projects.--Pilot projects carried out under paragraph (1)
        may include projects to determine whether healthier food purchases
        by and healthier diets among households participating in the
        supplemental nutrition assistance program result from projects
        that--
                ``(A) increase the supplemental nutrition assistance
            purchasing power of the participating households by providing
            increased supplemental nutrition assistance program benefit
            allotments to the participating households;
                ``(B) increase access to farmers markets by participating
            households through the electronic redemption of supplemental
            nutrition assistance program benefits at farmers' markets;
                ``(C) provide incentives to authorized supplemental
            nutrition assistance program retailers to increase the
            availability of healthy foods to participating households;
                ``(D) subject authorized supplemental nutrition assistance
            program retailers to stricter retailer requirements with
            respect to carrying and stocking healthful foods;
                ``(E) provide incentives at the point of purchase to
            encourage households participating in the supplemental
            nutrition assistance program to purchase fruits, vegetables, or
            other healthful foods; or
                ``(F) provide to participating households integrated
            communication and education programs, including the provision
            of funding for a portion of a school-based nutrition
            coordinator to implement a broad nutrition action plan and
            parent nutrition education programs in elementary schools,
            separately or in combination with pilot projects carried out
            under subparagraphs (A) through (E).
            ``(4) Evaluation and reporting.--
                ``(A) Evaluation.--
                    ``(i) Independent evaluation.--

                        ``(I) In general.--The Secretary shall provide for
                    an independent evaluation of projects selected under
                    this subsection that measures the impact of the pilot
                    program on health and nutrition as described in
                    paragraph (1).
                        ``(II) Requirement.--The independent evaluation
                    under subclause (I) shall use rigorous methodologies,
                    particularly random assignment or other methods that
                    are capable of producing scientifically valid
                    information regarding which activities are effective.

                    ``(ii) Costs.--The Secretary may use funds provided to
                carry out this section to pay costs associated with
                monitoring and evaluating each pilot project.
                ``(B) Reporting.--Not later than 90 days after the last day
            of fiscal year 2009 and each fiscal year thereafter until the
            completion of the last evaluation under subparagraph (A), the
            Secretary shall submit to the Committee on Agriculture of the
            House of Representatives and the Committee on Agriculture,
            Nutrition, and Forestry of the Senate a report that includes a
            description of--
                    ``(i) the status of each pilot project;
                    ``(ii) the results of the evaluation completed during
                the previous fiscal year; and
                    ``(iii) to the maximum extent practicable--

                        ``(I) the impact of the pilot project on
                    appropriate health, nutrition, and associated
                    behavioral outcomes among households participating in
                    the pilot project;
                        ``(II) baseline information relevant to the stated
                    goals and desired outcomes of the pilot project; and
                        ``(III) equivalent information about similar or
                    identical measures among control or comparison groups
                    that did not participate in the pilot project.

                ``(C) Public dissemination.--In addition to the reporting
            requirements under subparagraph (B), evaluation results shall
            be shared broadly to inform policy makers, service providers,
            other partners, and the public in order to promote wide use of
            successful strategies.
            ``(5) Funding.--
                ``(A) Authorization of appropriations.--There are
            authorized to be appropriated such sums as are necessary to
            carry out this section for each of fiscal years 2008 through
            2012.
                ``(B) Mandatory funding.--Out of any funds made available
            under section 18, on October 1, 2008, the Secretary shall make
            available $20,000,000 to carry out a project described in
            paragraph (3)(E), to remain available until expended.''.
    SEC. 4142. STUDY ON COMPARABLE ACCESS TO SUPPLEMENTAL NUTRITION
    ASSISTANCE FOR PUERTO RICO.
        (a) In General.--The Secretary shall carry out a study of the
    feasibility and effects of including the Commonwealth of Puerto Rico in
    the definition of the term ``State'' under section 3 of the Food and
    Nutrition Act of 2008 (7 U.S.C. 2012), in lieu of providing block
    grants under section 19 of that Act (7 U.S.C. 2028).
        (b) Inclusions.--The study shall include--
            (1) an assessment of the administrative, financial management,
        and other changes that would be necessary for the Commonwealth to
        establish a comparable supplemental nutrition assistance program,
        including compliance with appropriate program rules under the Food
        and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), such as--
                (A) benefit levels under section 3(u) of that Act (7 U.S.C.
            2012(u));
                (B) income eligibility standards under sections 5(c) and 6
            of that Act (7 U.S.C. 2014(c), 2015); and
                (C) deduction levels under section 5(e) of that Act (7
            U.S.C. 2014(e));
            (2) an estimate of the impact on Federal and Commonwealth
        benefit and administrative costs;
            (3) an assessment of the impact of the program on low-income
        Puerto Ricans, as compared to the program under section 19 of that
        Act (7 U.S.C. 2028); and
            (4) such other matters as the Secretary considers to be
        appropriate.
        (c) Report.--Not later than 2 years after the date of enactment of
    this Act, the Secretary shall submit to the Committee on Agriculture of
    the House of Representatives and the Committee on 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.

                     Subtitle B--Food Distribution Programs

                   PART I--EMERGENCY FOOD ASSISTANCE PROGRAM

    SEC. 4201. EMERGENCY FOOD ASSISTANCE.
        (a) Purchase of Commodities.--Section 27(a) of the Food and
    Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended by -
            (1) by striking ``(a) Purchase of Commodities'' and all that
        follows through ``$140,000,000 of'' and inserting the following:
        ``(a) Purchase of Commodities.--
            ``(1) In general.--From amounts made available to carry out
        this Act, for each of the fiscal years 2008 through 2012, the
        Secretary shall purchase a dollar amount described in paragraph (2)
        of''; and
            (2) by adding at the end the following:
            ``(2) Amounts.--The Secretary shall use to carry out paragraph
        (1)--
                ``(A) for fiscal year 2008, $190,000,000;
                ``(B) for fiscal year 2009, $250,000,000; and
                ``(C) for each of fiscal years 2010 through 2012, the
            dollar amount of commodities specified in subparagraph (B)
            adjusted by the percentage by which the thrifty food plan has
            been adjusted under section 3(u)(4) between June 30, 2008, and
            June 30 of the immediately preceding fiscal year.''.
        (b) State Plans.--Section 202A of the Emergency Food Assistance Act
    of 1983 (7 U.S.C. 7503) is amended by striking subsection (a) and
    inserting the following:
        ``(a) Plans.--
            ``(1) In general.--To receive commodities under this Act, a
        State shall submit to the Secretary an operation and administration
        plan for the provision of benefits under this Act.
            ``(2) Updates.--A State shall submit to the Secretary for
        approval any amendment to a plan submitted under paragraph (1) in
        any case in which the State proposes to make a change to the
        operation or administration of a program described in the plan.''.
        (c) Authorization and Appropriations.--Section 204(a)(1) of the
    Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) is amended
    in the first sentence--
            (1) by striking ``$60,000,000'' and inserting ``$100,000,000'';
        and
            (2) by inserting ``and donated wild game'' before the period at
        the end.
    SEC. 4202. EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS.
        The Emergency Food Assistance Act of 1983 is amended by inserting
    after section 208 (7 U.S.C. 7511) the following:
        ``SEC. 209. EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS.
        ``(a) Definition of Eligible Entity.--In this section, the term
    `eligible entity' means an emergency feeding organization.
        ``(b) Program Authorized.--
            ``(1) In general.--The Secretary shall use funds made available
        under subsection (d) to make grants to eligible entities to pay the
        costs of an activity described in subsection (c).
            ``(2) Rural preference.--The Secretary shall use not less than
        50 percent of the funds described in paragraph (1) for a fiscal
        year to make grants to eligible entities that serve predominantly
        rural communities for the purposes of--
                ``(A) expanding the capacity and infrastructure of food
            banks, State-wide food bank associations, and food bank
            collaboratives that operate in rural areas; and
                ``(B) improving the capacity of the food banks to procure,
            receive, store, distribute, track, and deliver time-sensitive
            or perishable food products.
        ``(c) Use of Funds.--An eligible entity shall use a grant received
    under this section for any fiscal year to carry out activities of the
    eligible entity, including--
            ``(1) the development and maintenance of a computerized system
        for the tracking of time-sensitive food products;
            ``(2) capital, infrastructure, and operating costs associated
        with the collection, storage, distribution, and transportation of
        time-sensitive and perishable food products;
            ``(3) improving the security and diversity of the emergency
        food distribution and recovery systems of the United States through
        the support of small or mid-size farms and ranches, fisheries, and
        aquaculture, and donations from local food producers and
        manufacturers to persons in need;
            ``(4) providing recovered foods to food banks and similar
        nonprofit emergency food providers to reduce hunger in the United
        States;
            ``(5) improving the identification of--
                ``(A) potential providers of donated foods;
                ``(B) potential nonprofit emergency food providers; and
                ``(C) persons in need of emergency food assistance in rural
            areas; and
            ``(6) constructing, expanding, or repairing a facility or
        equipment to support hunger relief agencies in the community.
        ``(d) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $15,000,000 for each of fiscal
    years 2008 through 2012.''.

           PART II--FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS

    SEC. 4211. ASSESSING THE NUTRITIONAL VALUE OF THE FDPIR FOOD PACKAGE.
        (a) In General.--Section 4 of the Food and Nutrition Act of 2008 (7
    U.S.C. 2013) is amended by striking subsection (b) and inserting the
    following:
        ``(b) Food Distribution Program on Indian Reservations.--
            ``(1) In general.--Distribution of commodities, with or without
        the supplemental nutrition assistance program, shall be made
        whenever a request for concurrent or separate food program
        operations, respectively, is made by a tribal organization.
            ``(2) Administration.--
                ``(A) In general.--Subject to subparagraphs (B) and (C), in
            the event of distribution on all or part of an Indian
            reservation, the appropriate agency of the State government in
            the area involved shall be responsible for the distribution.
                ``(B) Administration by tribal organization.--If the
            Secretary determines that a tribal organization is capable of
            effectively and efficiently administering a distribution
            described in paragraph (1), then the tribal organization shall
            administer the distribution.
                ``(C) Prohibition.--The Secretary shall not approve any
            plan for a distribution described in paragraph (1) that permits
            any household on any Indian reservation to participate
            simultaneously in the supplemental nutrition assistance program
            and the program established under this subsection.
            ``(3) Disqualified participants.--An individual who is
        disqualified from participation in the food distribution program on
        Indian reservations under this subsection is not eligible to
        participate in the supplemental nutrition assistance program under
        this Act for a period of time to be determined by the Secretary.
            ``(4) Administrative costs.--The Secretary is authorized to pay
        such amounts for administrative costs and distribution costs on
        Indian reservations as the Secretary finds necessary for effective
        administration of such distribution by a State agency or tribal
        organization.
            ``(5) Bison meat.--Subject to the availability of
        appropriations to carry out this paragraph, the Secretary may
        purchase bison meat for recipients of food distributed under this
        subsection, including bison meat from--
                ``(A) Native American bison producers; and
                ``(B) producer-owned cooperatives of bison ranchers.
            ``(6) Traditional and locally-grown food fund.--
                ``(A) In general.--Subject to the availability of
            appropriations, the Secretary shall establish a fund for use in
            purchasing traditional and locally-grown foods for recipients
            of food distributed under this subsection.
                ``(B) Native american producers.--Where practicable, of the
            food provided under subparagraph (A), at least 50 percent shall
            be produced by Native American farmers, ranchers, and
            producers.
                ``(C) Definition of traditional and locally grown.--The
            Secretary shall determine the definition of the term
            `traditional and locally-grown' with respect to food
            distributed under this paragraph.
                ``(D) Survey.--In carrying out this paragraph, the
            Secretary shall--
                    ``(i) survey participants of the food distribution
                program on Indian reservations established under this
                subsection to determine which traditional foods are most
                desired by those participants; and
                    ``(ii) purchase or offer to purchase those traditional
                foods that may be procured cost-effectively.
                ``(E) Report.--Not later than 1 year after the date of
            enactment of this paragraph, and annually thereafter, the
            Secretary shall submit to the Committee on Agriculture of the
            House of Representatives and the Committee on Agriculture,
            Nutrition, and Forestry of the Senate a report describing the
            activities carried out under this paragraph during the
            preceding calendar year.
                ``(F) Authorization of appropriations.--There is authorized
            to be appropriated to the Secretary to carry out this paragraph
            $5,000,000 for each of fiscal years 2008 through 2012.''.
        (b) FDPIR Food Package.--Not later than 180 days after the date of
    enactment of this Act, the Secretary shall submit to the Committee on
    Agriculture of the House of Representatives and the Committee on
    Agriculture, Nutrition, and Forestry of the Senate a report that
    describes--
            (1) how the Secretary derives the process for determining the
        food package under the food distribution program on Indian
        reservations established under section 4(b) of the Food and
        Nutrition Act of 2008 (7 U.S.C. 2013(b)) (referred to in this
        subsection as the ``food package'');
            (2) the extent to which the food package--
                (A) addresses the nutritional needs of low-income Native
            Americans compared to the supplemental nutrition assistance
            program, particularly for very low-income households;
                (B) conforms (or fails to conform) to the 2005 Dietary
            Guidelines for Americans published under section 301 of the
            National Nutrition Monitoring and Related Research Act of 1990
            (7 U.S.C. 5341);
                (C) addresses (or fails to address) the nutritional and
            health challenges that are specific to Native Americans; and
                (D) is limited by distribution costs or challenges in
            infrastructure; and
            (3)(A) any plans of the Secretary to revise and update the food
        package to conform with the most recent Dietary Guidelines for
        Americans, including any costs associated with the planned changes;
        or
            (B) if the Secretary does not plan changes to the food package,
        the rationale of the Secretary for retaining the food package.

                 PART III--COMMODITY SUPPLEMENTAL FOOD PROGRAM

    SEC. 4221. COMMODITY SUPPLEMENTAL FOOD PROGRAM.
        Section 5 of the Agriculture and Consumer Protection Act of 1973 (7
    U.S.C. 612c note; Public Law 93-86) is amended by striking subsection
    (g) and inserting the following:
        ``(g) Prohibition.--Notwithstanding any other provision of law
    (including regulations), the Secretary may not require a State or local
    agency to prioritize assistance to a particular group of individuals
    that are--
            ``(1) low-income persons aged 60 and older; or
            ``(2) women, infants, and children.''.

               PART IV--SENIOR FARMERS' MARKET NUTRITION PROGRAM

    SEC. 4231. SENIORS FARMERS' MARKET NUTRITION PROGRAM.
        Section 4402 of the Farm Security and Rural Investment Act of 2002
    (7 U.S.C. 3007) is amended--
            (1) in subsection (b)(1), by inserting ``honey,'' after
        ``vegetables,'';
            (2) by striking subsection (c) and inserting the following:
        ``(c) Exclusion of Benefits in Determining Eligibility for Other
    Programs.--The value of any benefit provided to any eligible seniors
    farmers' market nutrition program recipient under this section shall
    not be considered to be income or resources for any purposes under any
    Federal, State, or local law.''; and
            (3) by adding at the end the following:
        ``(d) Prohibition on Collection of Sales Tax.--Each State shall
    ensure that no State or local tax is collected within the State on a
    purchase of food with a benefit distributed under the seniors farmers'
    market nutrition program.
        ``(e) Regulations.--The Secretary may promulgate such regulations
    as the Secretary considers to be necessary to carry out the seniors
    farmers' market nutrition program.''.

                Subtitle C--Child Nutrition and Related Programs

    SEC. 4301. STATE PERFORMANCE ON ENROLLING CHILDREN RECEIVING PROGRAM
    BENEFITS FOR FREE SCHOOL MEALS.
        (a) In General.--Not later than December 31, 2008 and June 30 of
    each year thereafter, the Secretary shall submit to the Committees on
    Agriculture and Education and Labor of the House of Representatives and
    the Committee on Agriculture, Nutrition, and Forestry of the Senate a
    report that assesses the effectiveness of each State in enrolling
    school-aged children in households receiving program benefits under the
    Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) (referred to in
    this section as ``program benefits'') for free school meals using
    direct certification.
        (b) Specific Measures.--The assessment of the Secretary of the
    performance of each State shall include--
            (1) an estimate of the number of school-aged children, by
        State, who were members of a household receiving program benefits
        at any time in July, August, or September of the prior year;
            (2) an estimate of the number of school-aged children, by
        State, who were directly certified as eligible for free lunches
        under the Richard B. Russell National School Lunch Act (42 U.S.C.
        1751 et seq.), based on receipt of program benefits, as of October
        1 of the prior year; and
            (3) an estimate of the number of school-aged children, by
        State, who were members of a household receiving program benefits
        at any time in July, August, or September of the prior year who
        were not candidates for direct certification because on October 1
        of the prior year the children attended a school operating under
        the special assistance provisions of section 11(a)(1) of the
        Richard B. Russell National School Lunch Act (42 U.S.C.
        1759a(a)(1)) that is not operating in a base year.
        (c) Performance Innovations.--The report of the Secretary shall
    describe best practices from States with the best performance or the
    most improved performance from the previous year.
    SEC. 4302. PURCHASES OF LOCALLY PRODUCED FOODS.
        Section 9(j) of the Richard B. Russell National School Lunch Act
    (42 U.S.C. 1758(j)) is amended to read as follows:
        ``(j) Purchases of Locally Produced Foods.--The Secretary shall--
            ``(1) encourage institutions receiving funds under this Act and
        the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) to
        purchase unprocessed agricultural products, both locally grown and
        locally raised, to the maximum extent practicable and appropriate;
            ``(2) advise institutions participating in a program described
        in paragraph (1) of the policy described in that paragraph and
        paragraph (3) and post information concerning the policy on the
        website maintained by the Secretary; and
            ``(3) allow institutions receiving funds under this Act and the
        Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), including the
        Department of Defense Fresh Fruit and Vegetable Program, to use a
        geographic preference for the procurement of unprocessed
        agricultural products, both locally grown and locally raised.''.
    SEC. 4303. HEALTHY FOOD EDUCATION AND PROGRAM REPLICABILITY.
        Section 18(h) of the Richard B. Russell National School Lunch Act
    (42 U.S.C. 1769(h)) is amended--
            (1) in paragraph (1)(C), by inserting ``promotes healthy food
        education in the school curriculum and'' before ``incorporates'';
            (2) by redesignating paragraph (2) as paragraph (4); and
            (3) by inserting after paragraph (1) the following:
            ``(2) Administration.--In providing grants under paragraph (1),
        the Secretary shall give priority to projects that can be
        replicated in schools.
            ``(3) Pilot program for high-poverty schools.--
                ``(A) Definitions.--In this paragraph:
                    ``(i) Eligible program.--The term `eligible program'
                means--

                        ``(I) a school-based program with hands-on
                    vegetable gardening and nutrition education that is
                    incorporated into the curriculum for 1 or more grades
                    at 2 or more eligible schools; or
                        ``(II) a community-based summer program with hands-
                    on vegetable gardening and nutrition education that is
                    part of, or coordinated with, a summer enrichment
                    program at 2 or more eligible schools.

                    ``(ii) Eligible school.--The term `eligible school'
                means a public school, at least 50 percent of the students
                of which are eligible for free or reduced price meals under
                this Act.
                ``(B) Establishment.--The Secretary shall carry out a pilot
            program under which the Secretary shall provide to nonprofit
            organizations or public entities in not more than 5 States
            grants to develop and run, through eligible programs, community
            gardens at eligible schools in the States that would--
                    ``(i) be planted, cared for, and harvested by students
                at the eligible schools; and
                    ``(ii) teach the students participating in the
                community gardens about agriculture production practices
                and diet.
                ``(C) Priority states.--Of the States in which grantees
            under this paragraph are located--
                    ``(i) at least 1 State shall be among the 15 largest
                States, as determined by the Secretary;
                    ``(ii) at least 1 State shall be among the 16th to 30th
                largest States, as determined by the Secretary; and
                    ``(iii) at least 1 State shall be a State that is not
                described in clause (i) or (ii).
                ``(D) Use of produce.--Produce from a community garden
            provided a grant under this paragraph may be--
                    ``(i) used to supplement food provided at the eligible
                school;
                    ``(ii) distributed to students to bring home to the
                families of the students; or
                    ``(iii) donated to a local food bank or senior center
                nutrition program.
                ``(E) No cost-sharing requirement.--A nonprofit
            organization or public entity that receives a grant under this
            paragraph shall not be required to share the cost of carrying
            out the activities assisted under this paragraph.
                ``(F) Evaluation.--A nonprofit organization or public
            entity that receives a grant under this paragraph shall be
            required to cooperate in an evaluation in accordance with
            paragraph (1)(H).''.
    SEC. 4304. FRESH FRUIT AND VEGETABLE PROGRAM.
        (a) Program.--
            (1) In general.--The Richard B. Russell National School Lunch
        Act is amended by inserting after section 18 (42 U.S.C. 1769) the
        following:
      ``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.--Except as provided in subsection (i)(2),
        the Secretary shall provide to each of the 50 States and the
        District of Columbia an annual grant in an amount equal to 1
        percent of the funds made available for a year to carry out the
        program.
            ``(2) Additional funding.--Of the funds remaining after grants
        are made under paragraph (1), the Secretary shall allocate
        additional funds to each State that is operating a school lunch
        program under section 4 based on the proportion that--
                ``(A) the population of the State; bears to
                ``(B) the population of the United States.
        ``(d) Selection of Schools.--
            ``(1) In general.--Except as provided in paragraph (2) of this
        subsection and section 4304(a)(2) of the Food, Conservation, and
        Energy Act of 2008, each year, in selecting schools to participate
        in the program, each State shall--
                ``(A) ensure that each school chosen to participate in the
            program is a school--
                    ``(i) in which not less than 50 percent of the students
                are eligible for free or reduced price meals under this
                Act; and
                    ``(ii) that submits an application in accordance with
                subparagraph (D);
                ``(B) to the maximum extent practicable, give the highest
            priority to schools with the highest proportion of children who
            are eligible for free or reduced price meals under this Act;
                ``(C) ensure that each school selected is an elementary
            school (as defined in section 9101 of the Elementary and
            Secondary Education Act of 1965 (20 U.S.C. 7801));
                ``(D) solicit applications from interested schools that
            include--
                    ``(i) information pertaining to the percentage of
                students enrolled in the school submitting the application
                who are eligible for free or reduced price school lunches
                under this Act;
                    ``(ii) a certification of support for participation in
                the program signed by the school food manager, the school
                principal, and the district superintendent (or equivalent
                positions, as determined by the school);
                    ``(iii) a plan for implementation of the program,
                including efforts to integrate activities carried out under
                this section with other efforts to promote sound health and
                nutrition, reduce overweight and obesity, or promote
                physical activity; and
                    ``(iv) such other information as may be requested by
                the Secretary; and
                ``(E) encourage applicants to submit a plan for
            implementation of the program that includes a partnership with
            1 or more entities that will provide non-Federal resources
            (including entities representing the fruit and vegetable
            industry).
            ``(2) Exception.--Clause (i) of paragraph (1)(A) shall not
        apply to a State if all schools that meet the requirements of that
        clause have been selected and the State does not have a sufficient
        number of additional schools that meet the requirement of that
        clause.
            ``(3) Outreach to low-income schools.--
                ``(A) In general.--Prior to making decisions regarding
            school participation in the program, a State agency shall
            inform the schools within the State with the highest proportion
            of free and reduced price meal eligibility, including Native
            American schools, of the eligibility of the schools for the
            program with respect to priority granted to schools with the
            highest proportion of free and reduced price eligibility under
            paragraph (1)(B).
                ``(B) Requirement.--In providing information to schools in
            accordance with subparagraph (A), a State agency shall inform
            the schools that would likely be chosen to participate in the
            program under paragraph (1)(B).
        ``(e) Notice of Availability.--If selected to participate in the
    program, a school shall widely publicize within the school the
    availability of free fresh fruits and vegetables under the program.
        ``(f) Per-Student Grant.--The per-student grant provided to a
    school under this section shall be--
            ``(1) determined by a State agency; and
            ``(2) not less than $50, nor more than $75.
        ``(g) Limitation.--To the maximum extent practicable, each State
    agency shall ensure that in making the fruits and vegetables provided
    under this section available to students, schools offer the fruits and
    vegetables separately from meals otherwise provided at the school under
    this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
        ``(h) Evaluation and Reports.--
            ``(1) In general.--The Secretary shall conduct an evaluation of
        the program, including a determination as to whether children
        experienced, as a result of participating in the program--
                ``(A) increased consumption of fruits and vegetables;
                ``(B) other dietary changes, such as decreased consumption
            of less nutritious foods; and
                ``(C) such other outcomes as are considered appropriate by
            the Secretary.
            ``(2) Report.--Not later than September 30, 2011, the Secretary
        shall submit to the Committee on Education and Labor of the House
        of Representatives and the Committee on Agriculture, Nutrition, and
        Forestry of the Senate a report that describes the results of the
        evaluation under paragraph (1).
        ``(i) Funding.--
            ``(1) In general.--Out of the funds made available under
        subsection (b)(2)(A) of section 14222 of the Food, Conservation,
        and Energy Act of 2008, the Secretary shall use the following
        amounts to carry out this section:
                ``(A) On October 1, 2008, $40,000,000.
                ``(B) On July 1, 2009, $65,000,000.
                ``(C) On July 1, 2010, $101,000,000.
                ``(D) On July 1, 2011, $150,000,000.
                ``(E) On July 1, 2012, and each July 1 thereafter, the
            amount made available for the preceding fiscal year, as
            adjusted to reflect changes for the 12-month period ending the
            preceding April 30 in the Consumer Price Index for All Urban
            Consumers published by the Bureau of Labor Statistics of the
            Department of Labor, for items other than food.
            ``(2) Maintenance of existing funding.--In allocating funding
        made available under paragraph (1) among the States in accordance
        with subsection (c), the Secretary shall ensure that each State
        that received funding under section 18(f) on the day before the
        date of enactment of the Food, Conservation, and Energy Act of 2008
        shall continue to receive sufficient funding under this section to
        maintain the caseload level of the State under that section as in
        effect on that date.
            ``(3) Evaluation funding.--On October 1, 2008, out of any funds
        made available under subsection (b)(2)(A) of section 14222 of the
        Food, Conservation, and Energy Act of 2008, the Secretary shall use
        to carry out the evaluation required under subsection (h),
        $3,000,000, to remain available for obligation until September 30,
        2010.
            ``(4) Receipt and acceptance.--The Secretary shall be entitled
        to receive, shall accept, and shall use to carry out this section
        any funds transferred for that purpose, without further
        appropriation.
            ``(5) Authorization of appropriations.--In addition to any
        other amounts made available to carry out this section, there are
        authorized to be appropriated such sums as are necessary to expand
        the program established under this section.
            ``(6) Administrative costs.--
                ``(A) In general.--Of funds made available to carry out
            this section for a fiscal year, the Secretary may use not more
            than $500,000 for the administrative costs of carrying out the
            program.
                ``(B) Reservation of funds.--The Secretary shall allow each
            State to reserve such funding as the Secretary determines to be
            necessary to administer the program in the State (with
            adjustments for the size of the State and the grant amount),
            but not to exceed the amount required to pay the costs of 1
            full-time coordinator for the program in the State.
            ``(7) Reallocation.--
                ``(A) Among states.--The Secretary may reallocate any
            amounts made available to carry out this section that are not
            obligated or expended by a date determined by the Secretary.
                ``(B) Within states.--A State that receives a grant under
            this section may reallocate any amounts made available under
            the grant that are not obligated or expended by a date
            determined by the Secretary.''.
            (2) Transition of existing schools.--
                (A) Existing secondary schools.--Section 19(d)(1)(C) of the
            Richard B. Russell National School Lunch Act (as amended by
            paragraph (1)) may be waived by a State until July 1, 2010, for
            each secondary school in the State that has been awarded
            funding under section 18(f) of that Act (42 U.S.C. 1769(f)) for
            the school year beginning July 1, 2008.
                (B) School year beginning july 1, 2008.--To facilitate
            transition from the program authorized under section 18(f) of
            the Richard B. Russell National School Lunch Act (42 U.S.C.
            1769(f)) (as in effect on the day before the date of enactment
            of this Act) to the program established under section 19 of
            that Act (as amended by paragraph (1))--
                    (i) for the school year beginning July 1, 2008, the
                Secretary may permit any school selected for participation
                under section 18(f) of that Act (42 U.S.C. 1769(f)) for
                that school year to continue to participate under section
                19 of that Act until the end of that school year; and
                    (ii) funds made available under that Act for fiscal
                year 2009 may be used to support the participation of any
                schools selected to participate in the program authorized
                under section 18(f) of that Act (42 U.S.C. 1769(f)) (as in
                effect on the day before the date of enactment of this
                Act).
        (b) Conforming Amendments.--Section 18 of the Richard B. Russell
    National School Lunch Act (42 U.S.C. 1769) is amended--
            (1) by striking subsection (f); and
            (2) by redesignating subsections (g) through (j) as subsections
        (f) through (i), respectively.
    SEC. 4305. WHOLE GRAIN PRODUCTS.
        (a) Purpose.--The purpose of this section is to encourage greater
    awareness and interest in the number and variety of whole grain
    products available to schoolchildren, as recommended by the 2005
    Dietary Guidelines for Americans.
        (b) Definition of Eligible Whole Grains and Whole Grain Products.--
    In this section, the terms ``whole grains'' and ``whole grain
    products'' have the meaning given the terms by the Food and Nutrition
    Service in the HealthierUS School Challenge.
        (c) Purchase of Whole Grains and Whole Grain Products.--In addition
    to the commodities delivered under section 6 of the Richard B. Russell
    National School Lunch Act (42 U.S.C. 1755), the Secretary shall
    purchase whole grains and whole grain products for use in--
            (1) the school lunch program established under the Richard B.
        Russell National School Lunch Act (42 U.S.C. 1751 et seq.); and
            (2) the school breakfast program established by section 4 of
        the Child Nutrition Act of 1966 (42 U.S.C. 1773).
        (d) Evaluation.--Not later than September 30, 2011, the Secretary
    shall conduct an evaluation of the activities conducted under
    subsection (c) that includes--
            (1) an evaluation of whether children participating in the
        school lunch and breakfast programs increased their consumption of
        whole grains;
            (2) an evaluation of which whole grains and whole grain
        products are most acceptable for use in the school lunch and
        breakfast programs;
            (3) any recommendations of the Secretary regarding the
        integration of whole grain products in the school lunch and
        breakfast programs; and
            (4) an evaluation of any other outcomes determined to be
        appropriate by the Secretary.
        (e) Report.--As soon as practicable after the completion of the
    evaluation under subsection (d), the Secretary shall submit to the
    Committee on Agriculture, Nutrition, and Forestry of the Senate and the
    Committee on Education and Labor of the House of Representative a
    report describing the results of the evaluation.
    SEC. 4306. BUY AMERICAN REQUIREMENTS.
        (a) Findings.--The Congress finds the following:
            (1) Federal law requires that commodities and products
        purchased with Federal funds be, to the extent practicable, of
        domestic origin.
            (2) Federal Buy American statutory requirements seek to ensure
        that purchases made with Federal funds benefit domestic producers.
            (3) The Richard B. Russell National School Lunch Act (42 U.S.C.
        1751 et seq.) requires the use of domestic food products for all
        meals served under the program, including food products purchased
        with local funds.
        (b) Buy American Statutory Requirements.--The Department of
    Agriculture should undertake training, guidance, and enforcement of the
    various current Buy American statutory requirements and regulations,
    including those of the Richard B. Russell National School Lunch Act (42
    U.S.C. 1751 et seq.).
    SEC. 4307. SURVEY OF FOODS PURCHASED BY SCHOOL FOOD AUTHORITIES.
        (a) In General.--For fiscal year 2009, the Secretary shall carry
    out a nationally representative survey of the foods purchased during
    the most recent school year for which data is available by school
    authorities participating in the school lunch program established under
    the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et
    seq.).
        (b) Report.--
            (1) In general.--On completion of the survey, the Secretary
        shall submit to the Committees on Agriculture and Education and
        Labor of the House of Representatives and the Committee on
        Agriculture, Nutrition, and Forestry of the Senate a report that
        describes the results of the survey.
            (2) Interim requirement.--If the initial report required under
        paragraph (1) is not submitted to the Committees referred to in
        that paragraph by June 30, 2009, the Secretary shall submit to the
        Committees an interim report that describes the relevant survey
        data, or a sample of such data, available to the Secretary as of
        that date.
        (c) Funding.--Of the funds of the Commodity Credit Corporation, the
    Secretary shall use to carry out this section not more than $3,000,000.

                           Subtitle D--Miscellaneous

    SEC. 4401. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY LELAND
    INTERNATIONAL HUNGER FELLOWS.
        Section 4404 of the Farm Security and Rural Investment Act of 2002
    (2 U.S.C. 1161) is amended to read as follows:
    ``SEC. 4404. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY LELAND
    INTERNATIONAL HUNGER FELLOWS.
        ``(a) Short Title.--This section may be cited as the `Bill Emerson
    National Hunger Fellows and Mickey Leland International Hunger Fellows
    Program Act of 2008'.
        ``(b) Definitions.--In this subsection:
            ``(1) Director.--The term `Director' means the head of the
        Congressional Hunger Center.
            ``(2) Fellow.--The term `fellow' means--
                ``(A) a Bill Emerson Hunger Fellow; or
                ``(B) Mickey Leland Hunger Fellow.
            ``(3) Fellowship programs.--The term `Fellowship Programs'
        means the Bill Emerson National Hunger Fellowship Program and the
        Mickey Leland International Hunger Fellowship Program established
        under subsection (c)(1).
        ``(c) Fellowship Programs.--
            ``(1) In general.--There is established the Bill Emerson
        National Hunger Fellowship Program and the Mickey Leland
        International Hunger Fellowship Program.
            ``(2) Purposes.--
                ``(A) In general.--The purposes of the Fellowship Programs
            are--
                    ``(i) to encourage future leaders of the United
                States--

                        ``(I) to pursue careers in humanitarian and public
                    service;
                        ``(II) to recognize the needs of low-income people
                    and hungry people;
                        ``(III) to provide assistance to people in need;
                    and
                        ``(IV) to seek public policy solutions to the
                    challenges of hunger and poverty;

                    ``(ii) to provide training and development
                opportunities for such leaders through placement in
                programs operated by appropriate organizations or entities;
                and
                    ``(iii) to increase awareness of the importance of
                public service.
                ``(B) Bill emerson hunger fellowship program.--The purpose
            of the Bill Emerson Hunger Fellowship Program is to address
            hunger and poverty in the United States.
                ``(C) Mickey leland hunger fellowship program.--The purpose
            of the Mickey Leland Hunger Fellowship Program is to address
            international hunger and other humanitarian needs.
            ``(3) Administration.--
                ``(A) 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.
        ``(d) Fellowships.--
            ``(1) In general.--The Director shall make available Bill
        Emerson Hunger Fellowships and Mickey Leland Hunger Fellowships in
        accordance with this subsection.
            ``(2) Curriculum.--
                ``(A) In general.--The Fellowship Programs shall provide
            experience and training to develop the skills necessary to
            train fellows to carry out the purposes described in subsection
            (c)(2), including--
                    ``(i) training in direct service programs for the
                hungry and other anti-hunger programs in conjunction with
                community-based organizations through a program of field
                placement; and
                    ``(ii) providing experience in policy development
                through placement in a governmental entity or
                nongovernmental, nonprofit, or private sector organization.
                ``(B) Work plan.--To carry out subparagraph (A) and assist
            in the evaluation of the fellowships under paragraph (6), the
            Director shall, for each fellow, approve a work plan that
            identifies the target objectives for the fellow in the
            fellowship, including specific duties and responsibilities
            relating to those objectives.
            ``(3) Period of fellowship.--
                ``(A) Bill emerson hunger fellow.--A Bill Emerson Hunger
            Fellowship awarded under this section shall be for not more
            than 15 months.
                ``(B) Mickey leland hunger fellow.--A Mickey Leland Hunger
            Fellowship awarded under this section shall be for not more
            than 2 years.
            ``(4) Selection of fellows.--
                ``(A) In general.--Fellowships shall be awarded pursuant to
            a nationwide competition established by the Director.
                ``(B) Qualifications.--A successful program applicant shall
            be an individual who has demonstrated--
                    ``(i) an intent to pursue a career in humanitarian
                services and outstanding potential for such a career;
                    ``(ii) leadership potential or actual leadership
                experience;
                    ``(iii) diverse life experience;
                    ``(iv) proficient writing and speaking skills;
                    ``(v) an ability to live in poor or diverse
                communities; and
                    ``(vi) such other attributes as are considered to be
                appropriate by the Director.
            ``(5) Amount of award.--
                ``(A) In general.--A fellow shall receive--
                    ``(i) a living allowance during the term of the
                Fellowship; and
                    ``(ii) subject to subparagraph (B), an end-of-service
                award.
                ``(B) Requirement for successful completion of
            fellowship.--Each fellow shall be entitled to receive an end-
            of-service award at an appropriate rate for each month of
            satisfactory service completed, as determined by the Director.
                ``(C) Terms of fellowship.--A fellow shall not be
            considered an employee of--
                    ``(i) the Department of Agriculture;
                    ``(ii) the Congressional Hunger Center; or
                    ``(iii) a host agency in the field or policy placement
                of the fellow.
                ``(D) Recognition of fellowship award.--
                    ``(i) Emerson fellow.--An individual awarded a
                fellowship from the Bill Emerson Hunger Fellowship shall be
                known as an `Emerson Fellow'.
                    ``(ii) Leland fellow.--An individual awarded a
                fellowship from the Mickey Leland Hunger Fellowship shall
                be known as a `Leland Fellow'.
            ``(6) Evaluations and audits.--Under terms stipulated in the
        contract entered into under subsection (c)(3), the Director shall--
                ``(A) conduct periodic evaluations of the Fellowship
            Programs; and
                ``(B) arrange for annual independent financial audits of
            expenditures under the Fellowship Programs.
        ``(e) Authority.--
            ``(1) In general.--Subject to paragraph (2), in carrying out
        this section, the Director may solicit, accept, use, and dispose of
        gifts, bequests, or devises of services or property, both real and
        personal, for the purpose of facilitating the work of the
        Fellowship Programs.
            ``(2) Limitation.--Gifts, bequests, or devises of money and
        proceeds from sales of other property received as gifts, bequests,
        or devises shall be used exclusively for the purposes of the
        Fellowship Programs.
        ``(f) Report.--The Director shall annually submit to the Secretary
    of Agriculture, the Committee on Agriculture of the House of
    Representatives, and the Committee on Agriculture, Nutrition, and
    Forestry of the Senate a report that--
            ``(1) describes the activities and expenditures of the
        Fellowship Programs during the preceding fiscal year, including
        expenditures made from funds made available under subsection (g);
        and
            ``(2) includes the results of evaluations and audits required
        by subsection (d).
        ``(g) Authorization of Appropriations.--There are authorized to be
    appropriated to the Secretary such sums as are necessary to carry out
    this section, to remain available until expended.''.
    SEC. 4402. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.
        Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C. 2034) is
    amended--
            (1) by striking subsection (a) and inserting the following:
        ``(a) Definitions.--In this section:
            ``(1) Community food project.--In this section, the term
        `community food project' means a community-based project that--
                ``(A) requires a 1-time contribution of Federal assistance
            to become self-sustaining; and
                ``(B) is designed--
                    ``(i)(I) to meet the food needs of low-income
                individuals;
                    ``(II) to increase the self-reliance of communities in
                providing for the food needs of the communities; and
                    ``(III) to promote comprehensive responses to local
                food, farm, and nutrition issues; or
                    ``(ii) to meet specific State, local, or neighborhood
                food and agricultural needs, including needs relating to--

                        ``(I) infrastructure improvement and development;
                        ``(II) planning for long-term solutions; or
                        ``(III) the creation of innovative marketing
                    activities that mutually benefit agricultural producers
                    and low-income consumers.

            ``(2) Center.--The term `Center' means the healthy urban food
        enterprise development center established under subsection (h).
            ``(3) Underserved community.--The term `underserved community'
        means a community (including an urban or rural community or an
        Indian tribe) that, as determined by the Secretary, has--
                ``(A) limited access to affordable, healthy foods,
            including fresh fruits and vegetables;
                ``(B) a high incidence of a diet-related disease (including
            obesity) as compared to the national average;
                ``(C) a high rate of hunger or food insecurity; or
                ``(D) severe or persistent poverty.'';
            (2) by redesignating subsection (h) as subsection (i); and
            (3) by inserting after subsection (g) the following:
        ``(h) Healthy Urban Food Enterprise Development Center.--
            ``(1) Definition of eligible entity.--In this subsection, the
        term `eligible entity' means--
                ``(A) a nonprofit organization;
                ``(B) a cooperative;
                ``(C) a commercial entity;
                ``(D) an agricultural producer;
                ``(E) an academic institution;
                ``(F) an individual; and
                ``(G) such other entities as the Secretary may designate.
            ``(2) Establishment.--The Secretary shall offer to provide a
        grant to a nonprofit organization to establish and support a
        healthy urban food enterprise development center to carry out the
        purpose described in paragraph (3).
            ``(3) Purpose.--The purpose of the Center is to increase access
        to healthy affordable foods, including locally produced
        agricultural products, to underserved communities.
            ``(4) Activities.--
                ``(A) Technical assistance and information.--The Center
            shall collect, develop, and provide technical assistance and
            information to small and medium-sized agricultural producers,
            food wholesalers and retailers, schools, and other individuals
            and entities regarding best practices and the availability of
            assistance for aggregating, storing, processing, and marketing
            locally produced agricultural products and increasing the
            availability of such products in underserved communities.
                ``(B) Authority to subgrant.--The Center may provide
            subgrants to eligible entities--
                    ``(i) to carry out feasibility studies to establish
                businesses for the purpose described in paragraph (3); and
                    ``(ii) to establish and otherwise assist enterprises
                that process, distribute, aggregate, store, and market
                healthy affordable foods.
            ``(5) Priority.--In providing technical assistance and grants
        under paragraph (4), the Center shall give priority to applications
        that include projects--
                ``(A) to benefit underserved communities; and
                ``(B) to develop market opportunities for small and mid-
            sized farm and ranch operations.
            ``(6) Report.--For each fiscal year for which the nonprofit
        organization described in paragraph (2) receives funds, the
        organization shall submit to the Secretary a report describing the
        activities carried out in the preceding fiscal year, including--
                ``(A) a description of technical assistance provided by the
            Center;
                ``(B) the total number and a description of the subgrants
            provided under paragraph (4)(B);
                ``(C) a complete listing of cases in which the activities
            of the Center have resulted in increased access to healthy,
            affordable foods, such as fresh fruit and vegetables,
            particularly for school-aged children and individuals in low-
            income communities; and
                ``(D) a determination of whether the activities identified
            in subparagraph (C) are sustained during the years following
            the initial provision of technical assistance and subgrants
            under this section.
            ``(7) Competitive award process.--The Secretary shall use a
        competitive process to award funds to establish the Center.
            ``(8) Limitation on administrative expenses.--Not more than 10
        percent of the total amount allocated for this subsection in a
        given fiscal year may be used for administrative expenses.
            ``(9) Funding.--
                ``(A) In general.--Out of any funds in the Treasury not
            otherwise appropriated, the Secretary of the Treasury shall
            transfer to the Secretary to carry out this subsection
            $1,000,000 for each of fiscal years 2009 through 2011.
                ``(B) Additional funding.--There is authorized to be
            appropriated $2,000,000 to carry out this subsection for fiscal
            year 2012.''.
    SEC. 4403. 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 dietary, health, physical activity,
        and diet and health knowledge data on a nationally representative
        sample;
            (2) to periodically collect data on special at-risk
        populations, as identified by the Secretaries;
            (3) to distribute information on health, nutrition, the
        environment, and physical activity to the public in a timely
        fashion;
            (4) to analyze new data that becomes available;
            (5) to continuously update food composition tables; and
            (6) to research and develop data collection methods and
        standards.
    SEC. 4404. SECTION 32 FUNDS FOR PURCHASE OF FRUITS, VEGETABLES, AND
    NUTS TO SUPPORT DOMESTIC NUTRITION ASSISTANCE PROGRAMS.
        (a) Funding for Additional Purchases of Fruits, Vegetables, and
    Nuts.--In addition to the purchases of fruits, vegetables, and nuts
    required by section 10603 of the Farm Security and Rural Investment Act
    of 2002 (7 U.S.C. 612c-4), the Secretary of Agriculture shall purchase
    fruits, vegetables, and nuts for the purpose of providing nutritious
    foods for use in domestic nutrition assistance programs, using, of the
    funds made available under section 32 of the Act of August 24, 1935 (7
    U.S.C. 612c), the following amounts:
            (1) $190,000,000 for fiscal year 2008.
            (2) $193,000,000 for fiscal year 2009.
            (3) $199,000,000 for fiscal year 2010.
            (4) $203,000,000 for fiscal year 2011.
            (5) $206,000,000 for fiscal year 2012 and each fiscal year
        thereafter.
        (b) Form of Purchases.--Fruits, vegetables, and nuts may be
    purchased under this section in the form of frozen, canned, dried, or
    fresh fruits, vegetables, and nuts.
        (c) Purchase of Fresh Fruits and Vegetables for Distribution to
    Schools and Service Institutions.--Section 10603 of the Farm Security
    and Rural Investment Act of 2002 (7 U.S.C. 612c-4) is amended by
    striking subsection (b) and inserting the following:
        ``(b) Purchase of Fresh Fruits and Vegetables for Distribution to
    Schools and Service Institutions.--The Secretary of Agriculture shall
    purchase fresh fruits and vegetables for distribution to schools and
    service institutions in accordance with section 6(a) of the Richard B.
    Russell National School Lunch Act (42 U.S.C. 1755(a)) using, of the
    amount specified in subsection (a), not less than $50,000,000 for each
    of fiscal years 2008 through 2012.''.
    SEC. 4405. HUNGER-FREE COMMUNITIES.
        (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means a
        public food program service provider or nonprofit organization,
        including an emergency feeding organization, that has collaborated,
        or will collaborate, with 1 or more local partner organizations to
        achieve at least 1 hunger-free communities goal.
            (2) Emergency feeding organization.--The term ``emergency
        feeding organization'' has the meaning given the term in section
        201A of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501).
            (3) Hunger-free communities goal.--The term ``hunger-free
        communities goal'' means any of the 14 goals described in the H.
        Con. Res. 302 (102nd Congress).
        (b) Hunger-Free Communities Collaborative Grants.--
            (1) Program.--
                (A) In general.--The Secretary shall use not more than 50
            percent of any funds made available under subsection (e) to
            make grants to eligible entities to pay the Federal share of
            the costs of an activity described in paragraph (2).
                (B) Federal share.--The Federal share of the cost of
            carrying out an activity under this subsection shall not exceed
            80 percent.
                (C) Non-federal share.--
                    (i) Calculation.--The non-Federal share of the cost of
                an activity under this subsection may be provided in cash
                or fairly evaluated in-kind contributions, including
                facilities, equipment, or services.
                    (ii) Sources.--Any entity may provide the non-Federal
                share of the cost of an activity under this subsection
                through a State government, a local government, or a
                private source.
            (2) Use of funds.--An eligible entity in a community shall use
        a grant received under this subsection for any fiscal year for
        hunger relief activities, including--
                (A) meeting the immediate needs of people who experience
            hunger in the community served by the eligible entity by--
                    (i) distributing food;
                    (ii) providing community outreach to assist in
                participation in federally assisted nutrition programs,
                including--

                        (I) the school breakfast program established by
                    section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
                    1773);
                        (II) the school lunch program established under the
                    Richard B. Russell National School Lunch Act (42 U.S.C.
                    1751 et seq.);
                        (III) the summer food service program for children
                    established under section 13 of that Act; and
                        (IV) other Federal programs that provide food for
                    children in child care facilities and homeless and
                    older individuals; or

                    (iii) improving access to food as part of a
                comprehensive service; and
                (B) developing new resources and strategies to help reduce
            hunger in the community and prevent hunger in the future by--
                    (i) developing creative food resources, such as
                community gardens, buying clubs, food cooperatives,
                community-owned and operated grocery stores, and farmers'
                markets;
                    (ii) coordinating food services with park and
                recreation programs and other community-based outlets to
                reduce barriers to access; or
                    (iii) creating nutrition education programs for at-risk
                populations to enhance food-purchasing and food-preparation
                skills and to heighten awareness of the connection between
                diet and health.
        (c) Hunger-Free Communities Infrastructure Grants.--
            (1) Program authorized.--
                (A) In general.--The Secretary shall use not more than 50
            percent of any funds made available for a fiscal year under
            subsection (e) to make grants to eligible entities to pay the
            Federal share of the costs of an activity described in
            paragraph (2).
                (B) Federal share.--The Federal share of the cost of
            carrying out an activity under this subsection shall not exceed
            80 percent.
            (2) Application.--
                (A) In general.--To receive a grant under this subsection,
            an eligible entity shall submit an application at such time, in
            such form, and containing such information as the Secretary may
            prescribe.
                (B) Contents.--Each application submitted under
            subparagraph (A) shall--
                    (i) identify any activity described in paragraph (3)
                that the grant will be used to fund; and
                    (ii) describe the means by which an activity identified
                under clause (i) will reduce hunger in the community of the
                eligible entity.
                (C) Priority.--In making grants under this subsection, the
            Secretary shall give priority to eligible entities that
            demonstrate 2 or more of the following:
                    (i) The eligible entity serves a community in which the
                rates of food insecurity, hunger, poverty, or unemployment
                are demonstrably higher than national average rates.
                    (ii) The eligible entity serves a community that has
                successfully carried out long-term efforts to reduce hunger
                in the community.
                    (iii) The eligible entity serves a community that
                provides public support for the efforts of the eligible
                entity.
                    (iv) The eligible entity is committed to achieving more
                than 1 hunger-free communities goal.
            (3) Use of funds.--An eligible entity shall use a grant
        received under this subsection to construct, expand, or repair a
        facility or equipment to support hunger relief efforts in the
        community.
        (d) Report.--If funds are made available under subsection (e) to
    carry out this section, not later than September 30, 2012, the
    Secretary shall submit to Congress a report that describes--
            (1) each grant made under this section, including--
                (A) a description of any activity funded; and
                (B) the degree of success of each activity funded in
            achieving hunger free-communities goals; and
            (2) the degree of success of all activities funded under this
        section in achieving domestic hunger goals.
        (e) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as are necessary to carry out this section for
    each of fiscal years 2008 through 2012.
    SEC. 4406. REAUTHORIZATION OF FEDERAL FOOD ASSISTANCE PROGRAMS.
        (a) Supplemental Nutrition Assistance Program.--
            (1) Authorization of appropriations.--Section 18(a)(1) of the
        Food and Nutrition Act of 2008 (7 U.S.C. 2027(a)(1)) is amended in
        the first sentence by striking ``for each of the fiscal years 2003
        through 2007'' and inserting ``for each of fiscal years 2008
        through 2012''.
            (2) Grants for simple application and eligibility determination
        systems and improved access to benefits.--Section 11(t)(1) of the
        Food and Nutrition Act of 2008 (7 U.S.C. 2020(t)(1)) is amended by
        striking ``For each of fiscal years 2003 through 2007'' and
        inserting ``Subject to the availability of appropriations under
        section 18(a), for each fiscal year''.
            (3) Funding of employment and training programs.--Section
        16(h)(1) of the Food and Nutrition Act of 2008 (7 U.S.C.
        2025(h)(1)) is amended--
                (A) in subparagraph (A), by striking ``the amount of--''
            and all that follows through the end of the subparagraph and
            inserting ``, $90,000,000 for each fiscal year.''; and
                (B) in subparagraph (E)(i), by striking ``for each of
            fiscal years 2002 through 2007'' and inserting ``for each
            fiscal year''.
            (4) Reductions in payments for administrative costs.--Section
        16(k)(3) of the Food and Nutrition Act of 2008 (7 U.S.C.
        2025(k)(3)) is amended--
                (A) in the first sentence of subparagraph (A), by striking
            ``effective for each of fiscal years 1999 through 2007,''; and
                (B) in subparagraph (B)(ii), by striking ``through fiscal
            year 2007''.
            (5) Cash payment pilot projects.--Section 17(b)(1)(B)(vi) of
        the Food and Nutrition Act of 2008 (7 U.S.C. 2026(b)(1)(B)(vi)) is
        amended--
                (A) by striking ``Any pilot'' and inserting ``Subject to
            the availability of appropriations under section 18(a), any
            pilot''; and
                (B) by striking ``through October 1, 2007,''.
            (6) Consolidated block grants for puerto rico and american
        samoa.--Section 19(a)(2)(A)(ii) of the Food and Nutrition Act of
        2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking ``for each
        of fiscal years 2004 through 2007'' and inserting ``subject to the
        availability of appropriations under section 18(a), for each fiscal
        year thereafter''.
            (7) Assistance for community food projects.--Section 25 of the
        Food and Nutrition Act of 2008 (7 U.S.C. 2034) is amended--
                (A) in subsection (b)(2)(B), by striking ``for each of
            fiscal years 1997 through 2007'' and inserting ``for fiscal
            year 2008 and each fiscal year thereafter''; and
                (B) in subsection (i)(4) (as redesignated by section 4402),
            by striking ``of fiscal years 2003 through 2007'' and inserting
            ``fiscal year thereafter''.
        (b) Commodity Distribution.--
            (1) Emergency food assistance.--Section 204(a)(1) of the
        Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) is
        amended in the first sentence by striking ``for each of the fiscal
        years 2003 through 2007'' and inserting ``for fiscal year 2008 and
        each fiscal year thereafter''.
            (2) Commodity distribution program.--Section 4(a) of the
        Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c
        note; Public Law 93-86) is amended in the first sentence by
        striking ``years 1991 through 2007'' and inserting ``years 2008
        through 2012''.
            (3) Commodity supplemental food program.--Section 5 of the
        Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c
        note; Public Law 93-86) is amended--
                (A) in subsection (a)--
                    (i) in paragraph (1), by striking ``each of fiscal
                years 2003 through 2007'' and inserting ``each of fiscal
                years 2008 through 2012''; and
                    (ii) in paragraph (2)(B), by striking the subparagraph
                designation and heading and all that follows through
                ``2007'' and inserting the following:
                ``(B) Subsequent fiscal years.--For each of fiscal years
            2004 through 2012''; and
                (B) in subsection (d)(2), by striking ``each of the fiscal
            years 1991 through 2007'' and inserting ``each of fiscal years
            2008 through 2012''.
            (4) Distribution of surplus commodities to special nutrition
        projects.--Section 1114(a)(2)(A) of the Agriculture and Food Act of
        1981 (7 U.S.C. 1431e(2)(A)) is amended in the first sentence by
        striking ``Effective through September 30, 2007'' and inserting
        ``For each of fiscal years 2008 through 2012''.
        (c) Farm Security and Rural Investment.--
            (1) Seniors farmers' market nutrition program.--Section 4402 of
        the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3007)
        is amended by striking by striking subsection (a) and inserting the
        following:
        ``(a) Funding.--Of the funds of the Commodity Credit Corporation,
    the Secretary of Agriculture shall use to carry out and expand the
    seniors farmers' market nutrition program $20,600,000 for each of
    fiscal years 2008 through 2012.''.
            (2) Nutrition information and awareness pilot program.--Section
        4403(f) of the Farm Security and Rural Investment Act of 2002 (7
        U.S.C. 3171 note; Public Law 107-171) is amended by striking
        ``2007'' and inserting ``2012''.
    SEC. 4407. EFFECTIVE AND IMPLEMENTATION DATES.
        Except as otherwise provided in this title, this title and the
    amendments made by this title take effect on October 1, 2008.

                                TITLE V--CREDIT
                        Subtitle A--Farm Ownership Loans

    SEC. 5001. DIRECT LOANS.
        Section 302 of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1922) is amended--
            (1) by striking the section designation and heading and all
        that follows through ``(a) The Secretary is authorized to'' and
        inserting the following:
        ``SEC. 302. PERSONS ELIGIBLE FOR REAL ESTATE LOANS.
        ``(a) In General.--The Secretary may''; and
            (2) in subsection (a)(2), by inserting ``, taking into
        consideration all farming experience of the applicant, without
        regard to any lapse between farming experiences'' after ``farming
        operations''.
    SEC. 5002. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.
        Section 304 of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1924) is amended to read as follows:
        ``SEC. 304. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.
        ``(a) In General.--The Secretary may make or guarantee qualified
    conservation loans to eligible borrowers under this section.
        ``(b) Definitions.--In this section:
            ``(1) Qualified conservation loan.--The term `qualified
        conservation loan' means a loan, the proceeds of which are used to
        cover the costs to the borrower of carrying out a qualified
        conservation project.
            ``(2) Qualified conservation project.--The term `qualified
        conservation project' means conservation measures that address
        provisions of a conservation plan of the eligible borrower.
            ``(3) Conservation plan.--The term `conservation plan' means a
        plan, approved by the Secretary, that, for a farming or ranching
        operation, identifies the conservation activities that will be
        addressed with loan funds provided under this section, including--
                ``(A) the installation of conservation structures to
            address soil, water, and related resources;
                ``(B) the establishment of forest cover for sustained yield
            timber management, erosion control, or shelter belt purposes;
                ``(C) the installation of water conservation measures;
                ``(D) the installation of waste management systems;
                ``(E) the establishment or improvement of permanent
            pasture;
                ``(F) compliance with section 1212 of the Food Security Act
            of 1985; and
                ``(G) other purposes consistent with the plan, including
            the adoption of any other emerging or existing conservation
            practices, techniques, or technologies approved by the
            Secretary.
        ``(c) Eligibility.--
            ``(1) In general.--The Secretary may make or guarantee loans to
        farmers or ranchers in the United States, farm cooperatives,
        private domestic corporations, partnerships, joint operations,
        trusts, or limited liability companies that are controlled by
        farmers or ranchers and engaged primarily and directly in
        agricultural production in the United States.
            ``(2) Requirements.--To be eligible for a loan under this
        section, applicants shall meet the requirements in paragraphs (1)
        and (2) of section 302(a).
        ``(d) Priority.--In making or guaranteeing loans under this
    section, the Secretary shall give priority to--
            ``(1) qualified beginning farmers or ranchers and socially
        disadvantaged farmers or ranchers;
            ``(2) owners or tenants who use the loans to convert to
        sustainable or organic agricultural production systems; and
            ``(3) producers who use the loans to build conservation
        structures or establish conservation practices to comply with
        section 1212 of the Food Security Act of 1985.
        ``(e) Limitations Applicable to Loan Guarantees.--The portion of a
    loan that the Secretary may guarantee under this section shall be 75
    percent of the principal amount of the loan.
        ``(f) Administrative Provisions.--The Secretary shall ensure, to
    the maximum extent practicable, that loans made or guaranteed under
    this section are distributed across diverse geographic regions.
        ``(g) Credit Eligibility.--The provisions of paragraphs (1) and (3)
    of section 333 shall not apply to loans made or guaranteed under this
    section.
        ``(h) Authorization of Appropriations.--For each of fiscal years
    2008 through 2012, there are authorized to be appropriated to the
    Secretary such funds as are necessary to carry out this section.''.
    SEC. 5003. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS.
        Section 305(a)(2) of the Consolidated Farm and Rural Development
    Act (7 U.S.C. 1925(a)(2)) is amended by striking ``$200,000'' and
    inserting ``$300,000''.
    SEC. 5004. DOWN PAYMENT LOAN PROGRAM.
        Section 310E of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1935) is amended--
            (1) in subsection (a)(1), by striking ``and ranchers'' and
        inserting ``or ranchers and socially disadvantaged farmers or
        ranchers'';
            (2) in subsection (b)--
                (A) by striking paragraph (1) and inserting the following;
            ``(1) Principal.--Each loan made under this section shall be in
        an amount that does not exceed 45 percent of the least of--
                ``(A) the purchase price of the farm or ranch to be
            acquired;
                ``(B) the appraised value of the farm or ranch to be
            acquired; or
                ``(C) $500,000.
            ``(2) Interest rate.--The interest rate on any loan made by the
        Secretary under this section shall be a rate equal to the greater
        of--
                ``(A) the difference obtained by subtracting 4 percent from
            the interest rate for farm ownership loans under this subtitle;
            or
                ``(B) 1.5 percent.''; and
                (B) in paragraph (3), by striking ``15'' and inserting
            ``20'';
            (3) in subsection (c)--
                (A) in paragraph (1), by striking ``10'' and inserting
            ``5'';
                (B) by striking paragraph (2) and redesignating paragraph
            (3) as paragraph (2); and
                (C) in paragraph (2)(B) (as so redesignated), by striking
            ``15-year'' and inserting ``20-year'';
            (4) in subsection (d)--
                (A) in paragraph (3)--
                    (i) by inserting ``and socially disadvantaged farmers
                or ranchers'' after ``ranchers''; and
                    (ii) by striking ``and'' at the end;
                (B) in paragraph (4), by striking ``and ranchers.'' and
            inserting `` or ranchers or socially disadvantaged farmers or
            ranchers; and''; and
                (C) by adding at the end the following:
            ``(5) establish annual performance goals to promote the use of
        the down payment loan program and other joint financing
        arrangements as the preferred choice for direct real estate loans
        made by any lender to a qualified beginning farmer or rancher or
        socially disadvantaged farmer or rancher.''; and
            (5) by adding at the end the following:
        ``(e) Socially Disadvantaged Farmer or Rancher Defined.--In this
    section, the term `socially disadvantaged farmer or rancher' has the
    meaning given that term in section 355(e)(2).''.
    SEC. 5005. BEGINNING FARMER OR RANCHER AND SOCIALLY DISADVANTAGED
    FARMER OR RANCHER CONTRACT LAND SALES PROGRAM.
        Section 310F of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1936) is amended to read as follows:
    ``SEC. 310F. BEGINNING FARMER OR RANCHER AND SOCIALLY DISADVANTAGED
    FARMER OR RANCHER CONTRACT LAND SALES PROGRAM.
        ``(a) In General.--The Secretary shall, in accordance with this
    section, guarantee a loan made by a private seller of a farm or ranch
    to a qualified beginning farmer or rancher or socially disadvantaged
    farmer or rancher (as defined in section 355(e)(2)) on a contract land
    sales basis.
        ``(b) Eligibility.--In order to be eligible for a loan guarantee
    under subsection (a)--
            ``(1) the qualified beginning farmer or rancher or socially
        disadvantaged farmer or rancher shall--
                ``(A) on the date the contract land sale that is subject of
            the loan is complete, own and operate the farm or ranch that is
            the subject of the contract land sale;
                ``(B) have a credit history that--
                    ``(i) includes a record of satisfactory debt repayment,
                as determined by the Secretary; and
                    ``(ii) is acceptable to the Secretary; and
                ``(C) demonstrate to the Secretary that the farmer or
            rancher, as the case may be, is unable to obtain sufficient
            credit without a guarantee to finance any actual need of the
            farmer or rancher, as the case may be, at a reasonable rate or
            term; and
            ``(2) the loan shall meet applicable underwriting criteria, as
        determined by the Secretary.
        ``(c) Limitations.--
            ``(1) Down payment.--The Secretary shall not provide a loan
        guarantee under subsection (a) if the contribution of the qualified
        beginning farmer or rancher or socially disadvantaged farmer or
        rancher to the down payment for the farm or ranch that is the
        subject of the contract land sale would be less than 5 percent of
        the purchase price of the farm or ranch.
            ``(2) Maximum purchase price.--The Secretary shall not provide
        a loan guarantee under subsection (a) if the purchase price or the
        appraisal value of the farm or ranch that is the subject of the
        contract land sale is greater than $500,000.
        ``(d) Period of Guarantee.--The period during which a loan
    guarantee under this section is in effect shall be the 10-year period
    beginning with the date the guarantee is provided.
        ``(e) Guarantee Plan.--
            ``(1) Selection of plan.--A private seller of a farm or ranch
        who makes a loan that is guaranteed by the Secretary under
        subsection (a) may select--
                ``(A) a prompt payment guarantee plan, which shall cover--
                    ``(i) 3 amortized annual installments; or
                    ``(ii) an amount equal to 3 annual installments
                (including an amount equal to the total cost of any tax and
                insurance incurred during the period covered by the annual
                installments); or
                ``(B) a standard guarantee plan, which shall cover an
            amount equal to 90 percent of the outstanding principal of the
            loan.
            ``(2) Eligiblity for standard guarantee plan.--In order for a
        private seller to be eligible for a standard guarantee plan
        referred to in paragraph (1)(B), the private seller shall--
                ``(A) secure a commercial lending institution or similar
            entity, as determined by the Secretary, to serve as an escrow
            agent; or
                ``(B) in cooperation with the farmer or rancher, use an
            appropriate alternate arrangement, as determined by the
            Secretary.
        ``(f) Transition From Pilot Program.--
            ``(1) In general.--The Secretary may phase-in the
        implementation of the changes to the Beginning Farmer and Rancher
        and Socially Disadvantaged Farmer or Rancher Contract Land Sales
        Program provided for in this section.
            ``(2) Limitation.--All changes to the Beginning Farmer and
        Rancher and Socially Disadvantaged Farmer or Rancher Contract Land
        Sales Program must be implemented for the 2011 Fiscal Year.''.

                          Subtitle B--Operating Loans

    SEC. 5101. FARMING EXPERIENCE AS ELIGIBILITY REQUIREMENT.
        Section 311 of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1941) is amended--
            (1) by striking the section designation and all that follows
        through ``(a) The Secretary is authorized to'' and inserting the
        following:
        ``SEC. 311. PERSONS ELIGIBLE FOR LOANS.
        ``(a) In General.--The Secretary may'';
            (2) in subsection (a)(2), by inserting ``, taking into
        consideration all farming experience of the applicant, without
        regard to any lapse between farming experiences'' after ``farming
        operations''.
    SEC. 5102. LIMITATIONS ON AMOUNT OF OPERATING LOANS.
        Section 313(a)(1) of the Consolidated Farm and Rural Development
    Act (7 U.S.C. 1943(a)(1)) is amended by striking ``$200,000'' and
    inserting ``$300,000''.
    SEC. 5103. SUSPENSION OF LIMITATION ON PERIOD FOR WHICH BORROWERS ARE
    ELIGIBLE FOR GUARANTEED ASSISTANCE.
        Section 5102 of the Farm Security And Rural Investment Act of 2002
    (7 U.S.C. 1949 note; Public Law 107-171) is amended by striking
    ``September 30, 2007'' and inserting ``December 31, 2010''.

                          Subtitle C--Emergency Loans

    SEC. 5201. ELIGIBILITY OF EQUINE FARMERS AND RANCHERS FOR EMERGENCY
    LOANS.
        Section 321(a) of the Consolidated Farm and Rural Development Act
    (7 U.S.C. 1961(a)) is amended--
            (1) in paragraph (1), by striking ``farmers, ranchers'' and
        inserting ``farmers or ranchers (including equine farmers or
        ranchers)''; and
            (2) in paragraph (2)(A), by striking ``farming, ranching,'' and
        inserting ``farming or ranching (including equine farming or
        ranching)''.

                     Subtitle D--Administrative Provisions

    SEC. 5301. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT ACCOUNTS
    PILOT PROGRAM.
        Subtitle D of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1981-2008r) is amended by inserting after section 333A the
    following:
    ``SEC. 333B. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT
    ACCOUNTS PILOT PROGRAM.
        ``(a) Definitions.--In this section:
            ``(1) Demonstration program.--The term `demonstration program'
        means a demonstration program carried out by a qualified entity
        under the pilot program established in subsection (b)(1).
            ``(2) Eligible participant.--The term `eligible participant'
        means a qualified beginning farmer or rancher that--
                ``(A) lacks significant financial resources or assets; and
                ``(B) has an income that is less than--
                    ``(i) 80 percent of the median income of the State in
                which the farmer or rancher resides; or
                    ``(ii) 200 percent of the most recent annual Federal
                Poverty Income Guidelines published by the Department of
                Health and Human Services for the State.
            ``(3) Individual development account.--The term `individual
        development account' means a savings account described in
        subsection (b)(4)(A).
            ``(4) Qualified entity.--
                ``(A) In general.--The term `qualified entity' means--
                    ``(i) 1 or more organizations--

                        ``(I) described in section 501(c)(3) of the
                    Internal Revenue Code of 1986; and
                        ``(II) exempt from taxation under section 501(a) of
                    such Code; or

                    ``(ii) a State, local, or tribal government submitting
                an application jointly with an organization described in
                clause (i).
                ``(B) No prohibition on collaboration.--An organization
            described in subparagraph (A)(i) may collaborate with a
            financial institution or for-profit community development
            corporation to carry out the purposes of this section.
        ``(b) Pilot Program.--
            ``(1) In general.--The Secretary shall establish a pilot
        program to be known as the `New Farmer Individual Development
        Accounts Pilot Program' under which the Secretary shall work
        through qualified entities to establish demonstration programs--
                ``(A) of at least 5 years in duration; and
                ``(B) in at least 15 States.
            ``(2) Coordination.--The Secretary shall operate the pilot
        program through, and in coordination with the farm loan programs
        of, the Farm Service Agency.
            ``(3) Reserve funds.--
                ``(A) In general.--A qualified entity carrying out a
            demonstration program under this section shall establish a
            reserve fund consisting of a non-Federal match of 50 percent of
            the total amount of the grant awarded to the demonstration
            program under this section.
                ``(B) Federal funds.--After the qualified entity has
            deposited the non-Federal matching funds described in
            subparagraph (A) in the reserve fund, the Secretary shall
            provide the total amount of the grant awarded under this
            section to the demonstration program for deposit in the reserve
            fund.
                ``(C) Use of funds.--Of the funds deposited under
            subparagraph (B) in the reserve fund established for a
            demonstration program, the qualified entity carrying out the
            demonstration program--
                    ``(i) may use up to 10 percent for administrative
                expenses; and
                    ``(ii) shall use the remainder in making matching
                awards described in paragraph (4)(B)(ii)(I).
                ``(D) Interest.--Any interest earned on amounts in a
            reserve fund established under subparagraph (A) may be used by
            the qualified entity as additional matching funds for, or to
            administer, the demonstration program.
                ``(E) Guidance.--The Secretary shall issue guidance
            regarding the investment requirements of reserve funds
            established under this paragraph.
                ``(F) Reversion.--On the date on which all funds remaining
            in any individual development account established by a
            qualified entity have reverted under paragraph (5)(B)(ii) to
            the reserve fund established by the qualified entity, there
            shall revert to the Treasury of the United States a percentage
            of the amount (if any) in the reserve fund equal to--
                    ``(i) the amount of Federal funds deposited in the
                reserve fund under subparagraph (B) that were not used for
                administrative expenses; divided by
                    ``(ii) the total amount of funds deposited in the
                reserve fund.
            ``(4) Individual development accounts.--
                ``(A) In general.--A qualified entity receiving a grant
            under this section shall establish and administer individual
            development accounts for eligible participants.
                ``(B) Contract requirements.--To be eligible to receive
            funds under this section from a qualified entity, an eligible
            participant shall enter into a contract with only 1 qualified
            entity under which--
                    ``(i) the eligible participant agrees--

                        ``(I) to deposit a certain amount of funds of the
                    eligible participant in a personal savings account, as
                    prescribed by the contractual agreement between the
                    eligible participant and the qualified entity;
                        ``(II) to use the funds described in subclause (I)
                    only for 1 or more eligible expenditures described in
                    paragraph (5)(A); and
                        ``(III) to complete financial training; and

                    ``(ii) the qualified entity agrees--

                        ``(I) to deposit, not later than 1 month after an
                    amount is deposited pursuant to clause (i)(I), at least
                    a 100-percent, and up to a 200-percent, match of that
                    amount into the individual development account
                    established for the eligible participant; and
                        ``(II) with uses of funds proposed by the eligible
                    participant.

                ``(C) Limitation.--
                    ``(i) In general.--A qualified entity administering a
                demonstration program under this section may provide not
                more than $6,000 for each fiscal year in matching funds to
                the individual development account established by the
                qualified entity for an eligible participant.
                    ``(ii) Treatment of amount.--An amount provided under
                clause (i) shall not be considered to be a gift or loan for
                mortgage purposes.
            ``(5) Eligible expenditures.--
                ``(A) In general.--An eligible expenditure described in
            this subparagraph is an expenditure--
                    ``(i) to purchase farmland or make a down payment on an
                accepted purchase offer for farmland;
                    ``(ii) to make mortgage payments on farmland purchased
                pursuant to clause (i), for up to 180 days after the date
                of the purchase;
                    ``(iii) to purchase breeding stock, fruit or nut trees,
                or trees to harvest for timber; and
                    ``(iv) for other similar expenditures, as determined by
                the Secretary.
                ``(B) Timing.--
                    ``(i) In general.--An eligible participant may make an
                eligible expenditure at any time during the 2-year period
                beginning on the date on which the last matching funds are
                provided under paragraph (4)(B)(ii)(I) to the individual
                development account established for the eligible
                participant.
                    ``(ii) Unexpended funds.--At the end of the period
                described in clause (i), any funds remaining in an
                individual development account established for an eligible
                participant shall revert to the reserve fund of the
                demonstration program under which the account was
                established.
        ``(c) Applications.--
            ``(1) In general.--A qualified entity that seeks to carry out a
        demonstration program under this section may submit to the
        Secretary an application at such time, in such form, and containing
        such information as the Secretary may prescribe.
            ``(2) Criteria.--In considering whether to approve an
        application to carry out a demonstration program under this
        section, the Secretary shall assess--
                ``(A) the degree to which the demonstration program
            described in the application is likely to aid eligible
            participants in successfully pursuing new farming
            opportunities;
                ``(B) the experience and ability of the qualified entity to
            responsibly administer the demonstration program;
                ``(C) the experience and ability of the qualified entity in
            recruiting, educating, and assisting eligible participants to
            increase economic independence and pursue or advance farming
            opportunities;
                ``(D) the aggregate amount of direct funds from non-Federal
            public sector and private sources that are formally committed
            to the demonstration program as matching contributions;
                ``(E) the adequacy of the plan of the qualified entity to
            provide information relevant to an evaluation of the
            demonstration program; and
                ``(F) such other factors as the Secretary considers to be
            appropriate.
            ``(3) Preferences.--In considering an application to conduct a
        demonstration program under this section, the Secretary shall give
        preference to an application from a qualified entity that
        demonstrates--
                ``(A) a track record of serving clients targeted by the
            program, including, as appropriate, socially disadvantaged
            farmers or ranchers (as defined in section 355(e)(2)); and
                ``(B) expertise in dealing with financial management
            aspects of farming.
            ``(4) Approval.--Not later than 1 year after the date of
        enactment of this section, in accordance with this section, the
        Secretary shall, on a competitive basis, approve such applications
        to conduct demonstration programs as the Secretary considers
        appropriate.
            ``(5) Term of authority.--If the Secretary approves an
        application to carry out a demonstration program, the Secretary
        shall authorize the applicant to carry out the project for a period
        of 5 years, plus an additional 2 years to make eligible
        expenditures in accordance with subsection (b)(5)(B).
        ``(d) Grant Authority.--
            ``(1) In general.--The Secretary shall make a grant to a
        qualified entity authorized to carry out a demonstration program
        under this section.
            ``(2) Maximum amount of grants.--The aggregate amount of grant
        funds provided to a demonstration program carried out under this
        section shall not exceed $250,000.
            ``(3) Timing of grant payments.--The Secretary shall pay the
        amounts awarded under a grant made under this section--
                ``(A) on the awarding of the grant; or
                ``(B) pursuant to such payment plan as the qualified entity
            may specify.
        ``(e) Reports.--
            ``(1) Annual progress reports.--
                ``(A) In general.--Not later than 60 days after the end of
            the calendar year in which the Secretary authorizes a qualified
            entity to carry out a demonstration program under this section,
            and annually thereafter until the conclusion of the
            demonstration program, the qualified entity shall prepare an
            annual report that includes, for the period covered by the
            report--
                    ``(i) an evaluation of the progress of the
                demonstration program;
                    ``(ii) information about the demonstration program,
                including the eligible participants and the individual
                development accounts that have been established; and
                    ``(iii) such other information as the Secretary may
                require.
                ``(B) Submission of reports.--A qualified entity shall
            submit each report required under subparagraph (A) to the
            Secretary.
            ``(2) Reports by the secretary.--Not later than 1 year after
        the date on which all demonstration programs under this section are
        concluded, the Secretary shall submit to Congress a final report
        that describes the results and findings of all reports and
        evaluations carried out under this section.
        ``(f) Annual Review.--The Secretary may conduct an annual review of
    the financial records of a qualified entity--
            ``(1) to assess the financial soundness of the qualified
        entity; and
            ``(2) to determine the use of grant funds made available to the
        qualified entity under this section.
        ``(g) Regulations.--In carrying out this section, the Secretary may
    promulgate regulations to ensure that the program includes provisions
    for--
            ``(1) the termination of demonstration programs;
            ``(2) control of the reserve funds in the case of such a
        termination;
            ``(3) transfer of demonstration programs to other qualified
        entities; and
            ``(4) remissions from a reserve fund to the Secretary in a case
        in which a demonstration program is terminated without transfer to
        a new qualified entity.
        ``(h) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $5,000,000 for each of fiscal
    years 2008 through 2012.''.
    SEC. 5302. INVENTORY SALES PREFERENCES; LOAN FUND SET-ASIDES.
        (a) Inventory Sales Preferences.--Section 335(c) of the
    Consolidated Farm and Rural Development Act (7 U.S.C. 1985(c)) is
    amended--
            (1) in paragraph (1)--
                (A) in subparagraph (B)--
                    (i) in the subparagraph heading, by inserting ``;
                socially disadvantaged farmer or rancher'' after ``or
                rancher'';
                    (ii) in clause (i), by inserting `` or a socially
                disadvantaged farmer or rancher'' after ``or rancher'';
                    (iii) in clause (ii), by inserting ``or socially
                disadvantaged farmer or rancher'' after ``or rancher'';
                    (iv) in clause (iii), by inserting ``or a socially
                disadvantaged farmer or rancher'' after ``or rancher''; and
                    (v) in clause (iv), by striking ``and ranchers'' and
                inserting ``or ranchers and socially disadvantaged farmers
                or ranchers''; and
                (B) in subparagraph (C), by inserting ``or a socially
            disadvantaged farmer or rancher'' after ``or rancher'';
            (2) in paragraph (5)(B)--
                (A) in clause (i)--
                    (i) in the clause heading, by inserting ``; socially
                disadvantaged farmer or rancher'' after ``or rancher'';
                    (ii) by inserting ``or a socially disadvantaged farmer
                or rancher'' after ``a beginning farmer or rancher''; and
                    (iii) by inserting ``or the socially disadvantaged
                farmer or rancher'' after ``the beginning farmer or
                rancher''; and
                (B) in clause (ii)--
                    (i) in the matter preceding subclause (I), by inserting
                ``or a socially disadvantaged farmer or rancher'' after
                ``or rancher''; and
                    (ii) in subclause (II), by inserting ``or the socially
                disadvantaged farmer or rancher'' after ``or rancher''; and
            (3) in paragraph (6)--
                (A) in subparagraph (A), by inserting ``or a socially
            disadvantaged farmer or rancher'' after ``or rancher''; and
                (B) in subparagraph (C)--
                    (i) in clause (i)(I), by striking ``and ranchers'' and
                inserting ``or ranchers and socially disadvantaged farmers
                or ranchers''; and
                    (ii) in clause (ii), by inserting ``or socially
                disadvantaged farmers or ranchers'' after ``or ranchers''.
        (b) Loan Fund Set-Asides.--Section 346(b)(2) of such Act (7 U.S.C.
    1994(b)(2)) is amended--
            (1) in subparagraph (A)--
                (A) in clause (i)--
                    (i) in subclause (I), by striking ``70 percent'' and
                inserting ``an amount that is not less than 75 percent of
                the total amount''; and
                    (ii) in subclause (II)--

                        (I) in the subclause heading, by inserting ``;
                    joint financing arrangements'' after ``payment loans'';
                        (II) by striking ``60 percent'' and inserting ``an
                    amount not less than \2/3\ of the amount''; and
                        (III) by inserting ``and joint financing
                    arrangements under section 307(a)(3)(D)'' after
                    ``section 310E''; and

                (B) in clause (ii)(III), by striking ``2003 through 2007,
            35 percent'' and inserting ``2008 through 2012, an amount that
            is not less than 50 percent of the total amount''; and
            (2) in subparagraph (B)(i), by striking ``25 percent'' and
        inserting ``an amount that is not less than 40 percent of the total
        amount''.
    SEC. 5303. LOAN AUTHORIZATION LEVELS.
        Section 346(b)(1) of the Consolidated Farm and Rural Development
    Act (7 U.S.C. 1994(b)(1)) is amended--
            (1) in the matter preceding subparagraph (A), by striking
        ``$3,796,000,000 for each of fiscal years 2003 through 2007'' and
        inserting ``$4,226,000,000 for each of fiscal years 2008 through
        2012''; and
            (2) in subparagraph (A)--
                (A) in the matter preceding clause (i), by striking
            ``$770,000,000'' and inserting ``$1,200,000,000'';
                (B) in clause (i), by striking ``$205,000,000'' and
            inserting ``$350,000,000''; and
                (C) in clause (ii), by striking ``$565,000,000'' and
            inserting ``$850,000,000''.
    SEC. 5304. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES OF CREDIT.
        Subtitle D of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1981-2008r) is amended by inserting after section 344 the
    following:
        ``SEC. 345. 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 period of time practicable.
        ``(b) Coordination.--In carrying out this section, the Secretary
    shall integrate and coordinate the transition policy described in
    subsection (a) with--
            ``(1) the borrower training program established by section 359;
            ``(2) the loan assessment process established by section 360;
            ``(3) the supervised credit requirement established by section
        361;
            ``(4) the market placement program established by section 362;
        and
            ``(5) other appropriate programs and authorities, as determined
        by the Secretary.''.
    SEC. 5305. EXTENSION OF THE RIGHT OF FIRST REFUSAL TO REACQUIRE
    HOMESTEAD PROPERTY TO IMMEDIATE FAMILY MEMBERS OF BORROWER-OWNER.
        Section 352(c)(4)(B) of the Consolidated Farm and Rural Development
    Act (7 U.S.C. 2000(c)(4)(B)) is amended--
            (1) in the 1st sentence, by striking ``, the borrower-owner''
        inserting ``of a borrower-owner who is a socially disadvantaged
        farmer or rancher (as defined in section 355(e)(2)), the borrower-
        owner or a member of the immediate family of the borrower-owner'';
        and
            (2) in the 2nd sentence, by inserting ``or immediate family
        member, as the case may be,'' before ``from''.
    SEC. 5306. RURAL DEVELOPMENT AND FARM LOAN PROGRAM ACTIVITIES.
        Subtitle D of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1981-2008r) is amended by inserting after section 364 the
    following:
        ``SEC. 365. RURAL DEVELOPMENT AND FARM LOAN PROGRAM ACTIVITIES.
        ``The Secretary may not complete a study of, or enter into a
    contract with a private party to carry out, without specific
    authorization in a subsequent Act of Congress, a competitive sourcing
    activity of the Secretary, including support personnel of the
    Department of Agriculture, relating to rural development or farm loan
    programs.''.

                            Subtitle E--Farm Credit

    SEC. 5401. FARM CREDIT SYSTEM INSURANCE CORPORATION.
        (a) In General.--Section 1.12(b) of the Farm Credit Act of 1971 (12
    U.S.C. 2020(b)) is amended--
            (1) in the first sentence, by striking ``Each Farm'' and
        inserting the following;
            ``(1) In general.--Each Farm''; and
            (2) by striking the second sentence and inserting the
        following:
            ``(2) Computation.--The assessment on any association or other
        financing institution described in paragraph (1) for any period
        shall be computed in an equitable manner, as determined by the
        Corporation.''.
        (b) Rules and Regulations.--Section 5.58(10) of such Act (12 U.S.C.
    2277a-7(10)) is amended by inserting ``and section 1.12(b)'' after
    ``part''.
    SEC. 5402. TECHNICAL CORRECTION.
        Section 3.3(b) of the Farm Credit Act of 1971 (12 U.S.C. 2124(b))
    is amended in the first sentence by striking ``per'' and inserting
    ``par''.
    SEC. 5403. BANK FOR COOPERATIVES VOTING STOCK.
        (a) In General.--Section 3.3(c) of the Farm Credit Act of 1971 (12
    U.S.C. 2124(c)) is amended by striking ``and (ii)'' and inserting
    ``(ii) other categories of persons and entities described in sections
    3.7 and 3.8 eligible to borrow from the bank, as determined by the
    bank's board of directors; and (iii)''.
        (b) Conforming Amendments.--Section 4.3A(c)(1)(D) of such Act (12
    U.S.C. 2154a(c)(1)(D)) is amended by redesignating clauses (ii) and
    (iii) as clauses (iii) and (iv), respectively, and inserting after
    clause (i) the following:
                    ``(ii) persons and entities eligible to borrow from the
                banks for cooperatives, as described in section
                3.3(c)(ii);''.
    SEC. 5404. PREMIUMS.
        (a) Amount in Fund Not Exceeding Secure Base Amount.--Section
    5.55(a) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4(a)) is
    amended--
            (1) in paragraph (1)--
                (A) in the matter preceding subparagraph (A)--
                    (i) by striking ``paragraph (2)'' and inserting
                ``paragraph (3)''; and
                    (ii) by striking ``annual'' ; and
                (B) by striking subparagraphs (A) through (D) and inserting
            the following:
                ``(A) the average outstanding insured obligations issued by
            the bank for the calendar year, after deducting from the
            obligations the percentages of the guaranteed portions of loans
            and investments described in paragraph (2), multiplied by
            0.0020; and
                ``(B) the product obtained by multiplying--
                    ``(i) the sum of--

                        ``(I) the average principal outstanding for the
                    calendar year on loans made by the bank that are in
                    nonaccrual status; and
                        ``(II) the average amount outstanding for the
                    calendar year of other-than-temporarily impaired
                    investments made by the bank; by

                    ``(ii) 0.0010.'';
            (2) by striking paragraph (4);
            (3) by redesignating paragraphs (2) and (3) as paragraphs (3)
        and (4), respectively;
            (4) by inserting after paragraph (1) the following:
            ``(2) Deductions from average outstanding insured
        obligations.--The average outstanding insured obligations issued by
        the bank for the calendar year referred to in paragraph (1)(A)
        shall be reduced by deducting from the obligations the sum of (as
        determined by the Corporation)--
                ``(A) 90 percent of each of--
                    ``(i) the average principal outstanding for the
                calendar year on the guaranteed portions of Federal
                government-guaranteed loans made by the bank that are in
                accrual status; and
                    ``(ii) the average amount outstanding for the calendar
                year of the guaranteed portions of Federal government-
                guaranteed investments made by the bank that are not
                permanently impaired; and
                ``(B) 80 percent of each of--
                    ``(i) the average principal outstanding for the
                calendar year on the guaranteed portions of State
                government-guaranteed loans made by the bank that are in
                accrual status; and
                    ``(ii) the average amount outstanding for the calendar
                year of the guaranteed portions of State government-
                guaranteed investments made by the bank that are not
                permanently impaired.'';
            (5) in paragraph (3) (as so redesignated by paragraph (3) of
        this subsection), by striking ``annual''; and
            (6) in paragraph (4) (as so redesignated by paragraph (3) of
        this subsection)--
                (A) in the paragraph heading, by inserting ``or
            investments'' after ``loans'' ; and
                (B) in the matter preceding subparagraph (A), by striking
            ``As used'' and all that follows through ``guaranteed--'' and
            inserting ``In this section, the term `government-guaranteed',
            when applied to a loan or an investment, means a loan, credit,
            or investment, or portion of a loan, credit, or investment,
            that is guaranteed--''.
        (b) Amount in Fund Exceeding Secure Base Amount.--Section 5.55(b)
    of such Act (12 U.S.C. 2277a-4(b)) is amended by striking ``annual''.
        (c) Secure Base Amount.--Section 5.55(c) of such Act (12 U.S.C.
    2277a-4(c)) is amended--
            (1) by striking ``For purposes'' and inserting the following:
            ``(1) In general.--For purposes'';
            (2) by striking ``(adjusted downward'' and all that follows
        through ``by the Corporation)'' and inserting ``(as adjusted under
        paragraph (2))''; and
            (3) by adding at the end the following:
            ``(2) Adjustment.--The aggregate outstanding insured
        obligations of all insured System banks under paragraph (1) shall
        be adjusted downward to exclude an amount equal to the sum of (as
        determined by the corporation)--
                ``(A) 90 percent of each of--
                    ``(i) the guaranteed portions of principal outstanding
                on Federal government-guaranteed loans in accrual status
                made by the banks; and
                    ``(ii) the guaranteed portions of the amount of Federal
                government-guaranteed investments made by the banks that
                are not permanently impaired; and
                ``(B) 80 percent of each of--
                    ``(i) the guaranteed portions of principal outstanding
                on State government-guaranteed loans in accrual status made
                by the banks; and
                    ``(ii) the guaranteed portions of the amount of State
                government-guaranteed investments made by the banks that
                are not permanently impaired.''.
        (d) Determination of Loan and Investment Amounts.--Section 5.55(d)
    of such Act (12 U.S.C. 2277a-4(d)) is amended--
            (1) in the subsection heading, by striking ``Principal
        Outstanding'' and inserting ``Loan and Investment Amounts'';
            (2) in the matter preceding paragraph (1), by striking ``For
        the purpose'' and all that follows through ``made--'' and inserting
        ``For the purpose of subsections (a) and (c), the principal
        outstanding on all loans made by an insured System bank, and the
        amount outstanding on all investments made by an insured System
        bank, shall be determined based on--'';
            (3) in each of paragraphs (1), (2), and (3), by inserting ``all
        loans or investments made'' before ``by'' the first place it
        appears; and
            (4) in each of paragraphs (1) and (2), by inserting ``or
        investments'' after ``that is able to make such loans'' each place
        it appears.
        (e) Allocation to System Institutions of Excess Reserves.--Section
    5.55(e) of such Act (12 U.S.C. 2277a-4(e)) is amended--
            (1) in paragraph (3), by striking ``the average secure base
        amount for the calendar year (as calculated on an average daily
        balance basis)'' and inserting ``the secure base amount'';
            (2) in paragraph (4), by striking subparagraph (B) and
        inserting the following:
                ``(B) there shall be credited to the allocated insurance
            reserves account of each insured system bank an amount that
            bears the same ratio to the total amount (less any amount
            credited under subparagraph (A)) as--
                    ``(i) the average principal outstanding for the
                calendar year on insured obligations issued by the bank
                (after deducting from the principal the percentages of the
                guaranteed portions of loans and investments described in
                subsection (a)(2)); bears to
                    ``(ii) the average principal outstanding for the
                calendar year on insured obligations issued by all insured
                System banks (after deducting from the principal the
                percentages of the guaranteed portions of loans and
                investments described in subsection (a)(2)).''; and
            (3) in paragraph (6)--
                (A) in subparagraph (A)--
                    (i) in the matter preceding clause (i), by striking
                ``beginning more'' and all that follows through ``January
                1, 2005'';
                    (ii) by striking clause (i) and inserting the
                following:
                    ``(i) subject to subparagraph (D), pay to each insured
                System bank, in a manner determined by the Corporation, an
                amount equal to the balance in the Allocated Insurance
                Reserves Account of the System bank; and''; and
                    (iii) in clause (ii)--

                        (I) by striking ``subparagraphs (C), (E), and (F)''
                    and inserting ``subparagraphs (C) and (E)''; and
                        (II) by striking ``, of the lesser of--'' and all
                    that follows through the end of subclause (II) and
                    inserting ``at the time of the termination of the
                    Financial Assistance Corporation, of the balance in the
                    Allocated Insurance Reserves Account established under
                    paragraph (1)(B).'';

                (B) in subparagraph (C)--
                    (i) in clause (i), by striking ``(in addition to the
                amounts described in subparagraph (F)(ii))''; and
                    (ii) by striking clause (ii) and inserting the
                following:
                    ``(ii) Termination of account.--On disbursement of an
                amount equal to $56,000,000, the Corporation shall--

                        ``(I) close the account established under paragraph
                    (1)(B); and
                        ``(II) transfer any remaining funds in the Account
                    to the remaining Allocated Insurance Reserves Accounts
                    in accordance with paragraph (4)(B) for the calendar
                    year in which the transfer occurs.''; and

                (C) by striking subparagraph (F).
    SEC. 5405. CERTIFICATION OF PREMIUMS.
        (a) Filing Certified Statement.--Section 5.56 of the Farm Credit
    Act of 1971 (12 U.S.C. 2277a-5) is amended by striking subsection (a)
    and inserting the following:
        ``(a) Filing Certified Statement.--On a date to be determined in
    the sole discretion of the Board of Directors of the Corporation, each
    insured System bank that became insured before the beginning of the
    period for which premiums are being assessed (referred to in this
    section as the `period') shall file with the Corporation a certified
    statement showing--
            ``(1) the average outstanding insured obligations for the
        period issued by the bank;
            ``(2)(A) the average principal outstanding for the period on
        the guaranteed portion of Federal government-guaranteed loans that
        are in accrual status; and
            ``(B) the average amount outstanding for the period of Federal
        government-guaranteed investments that are not permanently impaired
        (as defined in section 5.55(a)(4));
            ``(3)(A) the average principal outstanding for the period on
        State government-guaranteed loans that are in accrual status; and
            ``(B) the average amount outstanding for the period of State
        government-guaranteed investments that are not permanently impaired
        (as defined in section 5.55(a)(4));
            ``(4)(A) the average principal outstanding for the period on
        loans that are in nonaccrual status; and
            ``(B) the average amount outstanding for the period of other-
        than-temporarily impaired investments; and
            ``(5) the amount of the premium due the Corporation from the
        bank for the period.''.
        (b) Premium Payments.--Section 5.56 of such Act (12 U.S.C. 2277a-5)
    is amended by striking subsection (c) and inserting the following:
        ``(c) Premium Payments.--
            ``(1) In general.--Except as provided in paragraph (2), each
        insured System bank shall pay to the Corporation the premium
        payments required under subsection (a), not more frequently than
        once in each calendar quarter, in such manner and at such 1 or more
        times as the Board of Directors shall prescribe.
            ``(2) Premium amount.--The amount of the premium shall be
        established not later than 60 days after filing the certified
        statement specifying the amount of the premium.''.
        (c) Subsequent Premium Payments.--Section 5.56 of such Act (12
    U.S.C. 2277a-5) is amended--
            (1) by striking subsection (d); and
            (2) by redesignating subsection (e) as subsection (d).
    SEC. 5406. RURAL UTILITY LOANS.
        (a) Definition of Qualified Loan.--Section 8.0(9) of the Farm
    Credit Act of 1971 (12 U.S.C. 2279aa(9)) is amended--
            (1) in subparagraph (A)(iii), by striking ``or'' at the end;
            (2) in subparagraph (B)(ii), by striking the period at the end
        and inserting ``; or''; and
            (3) by adding at the end the following:
                ``(C) that is a loan, or an interest in a loan, for an
            electric or telephone facility by a cooperative lender to a
            borrower that has received, or is eligible to receive, a loan
            under the Rural Electrification Act of 1936 (7 U.S.C. 901 et
            seq.).''.
        (b) Guarantee of Qualified Loans.--Section 8.6(a)(1) of such Act
    (12 U.S.C. 2279aa-6(a)(1)) is amended by inserting ``applicable''
    before ``standards'' each place it appears in subparagraphs (A) and
    (B)(i).
        (c) Standards for Qualified Loans.--Section 8.8 of such Act (12
    U.S.C. 2279aa-8) is amended--
            (1) in subsection (a)--
                (A) by striking the first sentence and inserting the
            following:
            ``(1) In general.--The Corporation shall establish
        underwriting, security appraisal, and repayment standards for
        qualified loans taking into account the nature, risk profile, and
        other differences between different categories of qualified loans.
            ``(2) Supervision, examination, and report of condition.--The
        standards shall be subject to the authorities of the Farm Credit
        Administration under section 8.11.''; and
                (B) in the last sentence, by striking ``In establishing''
            and inserting the following:
            ``(3) Mortgage loans.--In establishing'';
            (2) in subsection (b)--
                (A) in the matter preceding paragraph (1), by inserting
            ``with respect to loans secured by agricultural real estate''
            after ``subsection (a)''; and
                (B) in paragraph (5)--
                    (i) by striking ``borrower'' the first place it appears
                and inserting ``farmer or rancher''; and
                    (ii) by striking ``site'' and inserting ``farm or
                ranch'';
            (3) in subsection (c)(1), by inserting ``secured by
        agricultural real estate'' after ``A loan'';
            (4) by striking subsection (d); and
            (5) by redesignating subsection (e) as subsection (d).
        (d) Risk-Based Capital Levels.--Section 8.32(a)(1) of such Act (12
    U.S.C. 2279bb-1(a)(1)) is amended--
            (1) by striking ``With respect'' and inserting the following:
                ``(A) In general.--With respect''; and
            (2) by adding at the end the following:
                ``(B) Rural utility loans.--With respect to securities
            representing an interest in, or obligation backed by, a pool of
            qualified loans described in section 8.0(9)(C) owned or
            guaranteed by the Corporation, losses occur at a rate of
            default and severity reasonably related to risks in electric
            and telephone facility loans (as applicable), as determined by
            the Director.''.
    SEC. 5407. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN DISTRICT
    ASSOCIATIONS.
        (a) In General.--The Farm Credit Act of 1971 is amended by
    inserting after section 7.6 (12 U.S.C. 2279b) the following:
        ``SEC. 7.7. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN DISTRICT
          ASSOCIATIONS.
        ``(a) Equalization of Loan-Making Powers.--
            ``(1) In general.--
                ``(A) Federal land bank associations.--Subject to paragraph
            (2), any association that owns a Federal land bank association
            authorized as of January 1, 2007, to make long-term loans under
            title I in its chartered territory within the geographic area
            described in subsection (b) may make short- and intermediate-
            term loans and otherwise operate as a production credit
            association under title II within that same chartered
            territory.
                ``(B) Production credit associations.--Subject to paragraph
            (2), any association that under its charter has title I lending
            authority and that owns a production credit association
            authorized as of January 1, 2007, to make short- and
            intermediate-term loans under title II in the geographic area
            described in subsection (b) may make long-term loans and
            otherwise operate, directly or through a subsidiary
            association, as a Federal land bank association or Federal land
            credit association under title I in the geographic area.
                ``(C) Farm credit bank.--Notwithstanding section 5.17(a),
            the Farm Credit Bank with which any association had a written
            financing agreement as of January 1, 2007, may make loans and
            extend other comparable financial assistance with respect to,
            and may purchase, any loans made under the new authority
            provided under subparagraph (A) or (B) by an association
            exercising such authority.
            ``(2) Required approvals.--An association may exercise the
        additional authority provided for in paragraph (1) only after the
        exercise of the authority is approved by--
                ``(A) the board of directors of the association; and
                ``(B) a majority of the voting stockholders of the
            association (or, if the association is a subsidiary of another
            association, the voting stockholders of the parent association)
            voting, in person or by proxy, at a duly authorized meeting of
            stockholders in accordance with the process described in
            section 7.11.
        ``(b) Applicability.--This section applies only to associations the
    chartered territory of which was within the geographic area served by
    the Federal intermediate credit bank immediately prior to its merger
    with a Farm Credit Bank under section 410(e)(1) of the Agricultural
    Credit Act of 1987 (12 U.S.C. 2011 note; Public Law 100-233).''.
        (b) Charter Amendments.--Section 5.17(a) of the Farm Credit Act of
    1971 (12 U.S.C. 2252(a)) is amended by adding at the end the following:
            ``(15)(A) Approve amendments to the charters of institutions of
        the Farm Credit System to implement the equalization of loan-making
        powers of a Farm Credit System association under section 7.7.
            ``(B) Amendments described in subparagraph (A) to the charters
        of an association and the related Farm Credit Bank shall be
        approved by the Farm Credit Administration, subject to any
        conditions of approval imposed, by not later than 30 days after the
        date on which the Farm Credit Administration receives all approvals
        required by section 7.7(a)(2).''.
        (c) Conforming Amendments.--
            (1) Section 5.17(a)(2) of the Farm Credit Act of 1971 (12
        U.S.C. 2252(a)(2)) is amended--
                (A) by striking ``(2)(A)'' and inserting ``(2)''; and
                (B) by striking subparagraphs (B) and (C).
            (2) Section 410 of the 1987 act.--Section 410(e)(1)(A)(iii) of
        the Agricultural Credit Act of 1987 (12 U.S.C. 2011 note; Public
        Law 100-233) is amended by inserting ``(except section 7.7 of that
        Act)'' after ``(12 U.S.C. 2001 et seq.)''.
            (3) Section 401 of the 1992 act.--Section 401(b) of the Farm
        Credit Banks and Associations Safety and Soundness Act of 1992 (12
        U.S.C. 2011 note; Public Law 102-552) is amended--
                (A) by inserting ``(except section 7.7 of the Farm Credit
            Act of 1971)'' after ``provision of law''; and
                (B) by striking ``, subject to such limitations'' and all
            that follows through the end of the paragraph and inserting a
            period.
        (d) Effective Date.--The amendments made by this section take
    effect on January 1, 2010.

                           Subtitle F--Miscellaneous

    SEC. 5501. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND.
        The first section of Public Law 91-229 (25 U.S.C. 488) is amended--
            (1) by striking ``That the Secretary'' and inserting the
        following:
    ``SECTION 1. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND.
        ``(a) In General.--The Secretary''; and
            (2) by adding at the end the following:
        ``(b) Highly Fractionated Land.--
            ``(1) In general.--Subject to paragraph (2), the Secretary of
        Agriculture may make and insure loans in accordance with section
        309 of the Consolidated Farm and Rural Development Act (7 U.S.C.
        1929) to eligible purchasers of highly fractionated land pursuant
        to section 205(c) of the Indian Land Consolidation Act (25 U.S.C.
        2204(c)).
            ``(2) Exclusion.--Section 4 shall not apply to trust land,
        restricted tribal land, or tribal corporation land that is
        mortgaged in accordance with paragraph (1).''.

                          TITLE VI--RURAL DEVELOPMENT
            Subtitle A--Consolidated Farm and Rural Development Act

    SEC. 6001. WATER, WASTE DISPOSAL, AND WASTEWATER FACILITY GRANTS.
        Section 306(a)(2)(B)(vii) of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) is amended by striking
    ``2002 through 2007'' and inserting ``2008 through 2012''.
    SEC. 6002. SEARCH GRANTS.
        (a) In General.--Section 306(a)(2) of the Consolidated Farm and
    Rural Development Act (7 U.S.C. 1926(a)(2)) is amended by adding at the
    end the following:
                ``(C) Special evaluation assistance for rural communities
            and households program.--
                    ``(i) In general.--The Secretary may establish the
                Special Evaluation Assistance for Rural Communities and
                Households (SEARCH) program, to make predevelopment
                planning grants for feasibility studies, design assistance,
                and technical assistance, to financially distressed
                communities in rural areas with populations of 2,500 or
                fewer inhabitants for water and waste disposal projects
                described in paragraph (1), this paragraph, and paragraph
                (24).
                    ``(ii) Terms.--

                        ``(I) Documentation.--With respect to grants made
                    under this subparagraph, the Secretary shall require
                    the lowest amount of documentation practicable.
                        ``(II) Matching.--Notwithstanding any other
                    provisions in this subsection, the Secretary may fund
                    up to 100 percent of the eligible costs of grants
                    provided under this subparagraph, as determined by the
                    Secretary.

                    ``(iii) Funding.--The Secretary may use not more than 4
                percent of the total amount of funds made available for a
                fiscal year for water, waste disposal, and essential
                community facility activities under this title to carry out
                this subparagraph.
                    ``(iv) Relationship to other authority.--The funds and
                authorities provided under this subparagraph are in
                addition to any other funds or authorities the Secretary
                may have to carry out activities described in clause
                (i).''.
        (b) Conforming Amendment.--Subtitle D of title VI of the Farm
    Security and Rural Investment Act of 2002 (7 U.S.C. 2009ee et seq.) is
    repealed.
    SEC. 6003. RURAL BUSINESS OPPORTUNITY GRANTS.
        Section 306(a)(11)(D) of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1926(a)(11)(D)) is amended by striking ``1996
    through 2007'' and inserting ``2008 through 2012''.
    SEC. 6004. CHILD DAY CARE FACILITY GRANTS, LOANS, AND LOAN GUARANTEES.
        Section 306(a)(19)(C)(ii) of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1926(a)(19)(C)(ii)) is amended by striking
    ``April'' and inserting ``June''.
    SEC. 6005. COMMUNITY FACILITY GRANTS TO ADVANCE BROADBAND.
        Section 306(a)(20)(E) of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1926(a)(20)(E)) is amended--
            (1) by striking ``state'' and inserting ``State''; and
            (2) by striking ``dial-up Internet access or''.
    SEC. 6006. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.
        Section 306(a)(22)(C) of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1926(a)(22)(C)) is amended by striking
    ``$15,000,000 for fiscal year 2003'' and inserting ``$25,000,000 for
    fiscal year 2008''.
    SEC. 6007. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY
    FACILITIES.
        Section 306(a)(25) of the Consolidated Farm and Rural Development
    Act (7 U.S.C. 1926(a)(25)) is amended--
            (1) in subparagraph (A)--
                (A) by striking ``tribal colleges and universities'' and
            inserting ``an entity that is a Tribal College or University'';
            and
                (B) by striking ``tribal college or university'' and
            inserting ``Tribal College or University'';
            (2) by striking subparagraph (B) and inserting the following:
                ``(B) Federal share.--The Secretary shall establish the
            maximum percentage of the cost of the facility that may be
            covered by a grant under this paragraph, except that the
            Secretary may not require non-Federal financial support in an
            amount that is greater than 5 percent of the total cost of the
            facility.''; and
            (3) in subparagraph (C), by striking ``2003 through 2007'' and
        inserting ``2008 through 2012''.
    SEC. 6008. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANT
    PROGRAM.
        Section 306A(i)(2) of the Consolidated Farm and Rural Development
    Act (7 U.S.C. 1926a(i)(2)) is amended by striking ``2003 through 2007''
    and inserting ``2008 through 2012''.
    SEC. 6009. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.
        (a) In General.--Section 306D(d)(1) of the Consolidated Farm and
    Rural Development Act (7 U.S.C. 1926d(d)(1)) is amended by striking
    ``2001 through 2007'' and inserting ``2008 through 2012''.
        (b) Rural Communities Assistance.--Section 4009 of the Solid Waste
    Disposal Act (42 U.S.C. 6949) is amended by adding at the end the
    following:
        ``(e) Additional Appropriations.--
            ``(1) In general.--There are authorized to be appropriated to
        carry out this section for the Denali Commission to provide
        assistance to municipalities in the State of Alaska $1,500,000 for
        each of fiscal years 2008 through 2012.
            ``(2) Administration.--For the purpose of carrying out this
        subsection, the Denali Commission shall--
                ``(A) be considered a State; and
                ``(B) comply with all other requirements and limitations of
            this section.''.
    SEC. 6010. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE
    CONSTRUCTION, REFURBISHING, AND SERVICING OF INDIVIDUALLY-OWNED
    HOUSEHOLD WATER WELL SYSTEMS IN RURAL AREAS FOR INDIVIDUALS WITH LOW OR
    MODERATE INCOMES.
        Section 306E of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1926e) is amended--
            (1) in subsection (b)(2)(C), by striking ``$8,000'' and
        inserting ``$11,000''; and
            (2) in subsection (d), by striking ``2003 through 2007'' and
        inserting ``2008 through 2012''.
    SEC. 6011. INTEREST RATES FOR WATER AND WASTE DISPOSAL FACILITIES
    LOANS.
        Section 307(a)(3) of the Consolidated Farm and Rural Development
    Act (7 U.S.C. 1927(a)(3)) is amended by adding at the end the
    following:
                ``(E) Interest rates for water and waste disposal
            facilities loans.--
                    ``(i) In general.--Except as provided in clause (ii)
                and notwithstanding subparagraph (A), in the case of a
                direct loan for a water or waste disposal facility--

                        ``(I) in the case of a loan that would be subject
                    to the 5 percent interest rate limitation under
                    subparagraph (A), the Secretary shall establish the
                    interest rate at a rate that is equal to 60 percent of
                    the current market yield for outstanding municipal
                    obligations with remaining periods to maturity
                    comparable to the average maturity of the loan,
                    adjusted to the nearest \1/8\ of 1 percent; and
                        ``(II) in the case of a loan that would be subject
                    to the 7 percent limitation under subparagraph (A), the
                    Secretary shall establish the interest rate at a rate
                    that is equal to 80 percent of the current market yield
                    for outstanding municipal obligations with remaining
                    periods to maturity comparable to the average maturity
                    of the loan, adjusted to the nearest \1/8\ of 1
                    percent.

                    ``(ii) Exception.--Clause (i) does not apply to a loan
                for a specific project that is the subject of a loan that
                has been approved, but not closed, as of the date of
                enactment of this subparagraph.''.
    SEC. 6012. COOPERATIVE EQUITY SECURITY GUARANTEE.
        (a) In General.--Section 310B of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1932) is amended--
            (1) by striking ``sec. 310B. (a)'' and inserting the following:
    ``SEC. 310B. ASSISTANCE FOR RURAL ENTITIES.
        ``(a) Loans to Private Business Enterprises.--
            ``(1) Definitions.--In this subsection:'';
            (2) in subsection (a)--
                (A) by moving the second and fourth sentences so as to
            appear as the second and first sentences, respectively;
                (B) in the sentence beginning ``As used in this subsection,
            the'' (as moved by subparagraph (A)), by striking ``As used in
            this subsection, the'' and inserting the following:
                ``(A) Aquaculture.--The'';
                (C) in the sentence beginning ``For the purposes of this
            subsection, the'', by striking ``For the purposes of this
            subsection, the'' and inserting the following:
                ``(B) Solar energy.--The'';
                (D) in the sentence beginning ``The Secretary may also''--
                    (i) by striking ``The Secretary may also'' and
                inserting the following:
            ``(2) Loan purposes.--The Secretary may'';
                    (ii) by inserting ``and private investment funds that
                invest primarily in cooperative organizations'' after ``or
                nonprofit'';
                    (iii) by striking ``of (1) improving'' and inserting
                ``of--
                ``(A) improving'';
                    (iv) by striking ``control, (2) the'' and inserting
                ``control;
                ``(B) the'';
                    (v) by striking ``areas, (3) reducing'' and inserting
                ``areas;
                ``(C) reducing'';
                    (vi) by striking ``areas, and (4) to'' and inserting
                ``areas; and
                ``(D) to'';
                (E) in the sentence beginning ``Such loans,'', by striking
            ``Such loans,'' and inserting the following:
            ``(3) Loan guarantees.--Loans described in paragraph (2),'';
        and
                (F) in the last sentence, by striking ``No loan'' and
            inserting the following:
            ``(4) Maximum amount of principal.--No loan''; and
            (3) in subsection (g)--
                (A) in paragraph (1), by inserting ``, including guarantees
            described in paragraph (3)(A)(ii)'' before the period at the
            end;
                (B) in paragraph (3)(A)--
                    (i) by striking ``(A) In general.--The Secretary'' and
                inserting the following:
                ``(A) Eligibility.--
                    ``(i) In general.--The Secretary''; and
                    (ii) by adding at the end the following:
                    ``(ii) Equity.--The Secretary may guarantee a loan made
                for the purchase of preferred stock or similar equity
                issued by a cooperative organization or a fund that invests
                primarily in cooperative organizations, if the guarantee
                significantly benefits 1 or more entities eligible for
                assistance for the purposes described in subsection (a)(1),
                as determined by the Secretary.''; and
                (C) in paragraph (8)(A)(ii), by striking ``a project--''
            and all that follows through the end of subclause (II) and
            inserting ``a project that--

                        ``(I)(aa) is in a rural area; and
                        ``(bb) provides for the value-added processing of
                    agricultural commodities; or
                        ``(II) significantly benefits 1 or more entities
                    eligible for assistance for the purposes described in
                    subsection (a)(1), as determined by the Secretary.''.

        (b) Conforming Amendments.--
            (1) Section 307(a)(6)(B) of the Consolidated Farm and Rural
        Development Act (7 U.S.C. 1927(a)(6)(B)) is amended by striking
        clause (ii) and inserting the following:
            ``(ii) section 310B(a)(2)(A); and''.
            (2) Section 310B(g) of the Consolidated Farm and Rural
        Development Act (7 U.S.C. 1932(g)) is amended by striking
        ``subsection (a)(1)'' each place it appears in paragraphs (1),
        (6)(A)(iii), and (8)(C) and inserting ``subsection (a)(2)(A)''.
            (3) Section 333A(g)(1)(B) of the Consolidated Farm and Rural
        Development Act (7 U.S.C. 1983a(g)(1)(B)) is amended by striking
        ``section 310B(a)(1)'' and inserting ``section 310B(a)(2)(A)''.
            (4) Section 381E(d)(3)(B) of the Consolidated Farm and Rural
        Development Act (7 U.S.C. 2009d(d)(3)(B)) is amended by striking
        ``section 310B(a)(1)'' and inserting ``section 310B(a)(2)(A)''.
    SEC. 6013. RURAL COOPERATIVE DEVELOPMENT GRANTS.
        (a) Eligibility.--Section 310B(e)(5) of the Consolidated Farm and
    Rural Development Act (7 U.S.C. 1932(e)(5)) is amended--
            (1) in subparagraph (A), by striking ``administering a
        nationally coordinated, regionally or State-wide operated project''
        and inserting ``carrying out activities to promote and assist the
        development of cooperatively and mutually owned businesses'';
            (2) in subparagraph (B), by inserting ``to promote and assist
        the development of cooperatively and mutually owned businesses''
        before the semicolon;
            (3) by striking subparagraph (D);
            (4) by redesignating subparagraph (E) as subparagraph (D);
            (5) in subparagraph (D) (as so redesignated), by striking
        ``and'' at the end;
            (6) by inserting after subparagraph (D) (as so redesignated)
        the following:
                ``(E) demonstrate a commitment to--
                    ``(i) networking with and sharing the results of the
                efforts of the center with other cooperative development
                centers and other organizations involved in rural economic
                development efforts; and
                    ``(ii) developing multiorganization and multistate
                approaches to addressing the economic development and
                cooperative needs of rural areas; and''; and
            (7) in subparagraph (F), by striking ``providing greater than''
        and inserting ``providing''.
        (b) Authority to Award Multiyear Grants.--Section 310B(e) of the
    Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) is
    amended by striking paragraph (6) and inserting the following:
            ``(6) Grant period.--
                ``(A) In general.--A grant awarded to a center that has
            received no prior funding under this subsection shall be made
            for a period of 1 year.
                ``(B) Multiyear grants.--If the Secretary determines it to
            be in the best interest of the program, the Secretary shall
            award grants for a period of more than 1 year, but not more
            than 3 years, to a center that has successfully met the
            parameters described in paragraph (5), as determined by the
            Secretary.''.
        (c) Authority to Extend Grant Period.--Section 310B(e) of the
    Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) is
    amended--
            (1) by redesignating paragraphs (7), (8), and (9) as paragraphs
        (8), (9), and (12), respectively; and
            (2) by inserting after paragraph (6) the following:
            ``(7) Authority to extend grant period.--The Secretary may
        extend for 1 additional 12-month period the period in which a
        grantee may use a grant made under this subsection.''.
        (d) Cooperative Research Program.--Section 310B(e) of the
    Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) is
    amended by inserting after paragraph (9) (as redesignated by subsection
    (c)(1)) the following:
            ``(10) Cooperative research program.--The Secretary shall enter
        into a cooperative research agreement with 1 or more qualified
        academic institutions in each fiscal year to conduct research on
        the effects of all types of cooperatives on the national
        economy.''.
        (e) Addressing Needs of Minority Communities.--Section 310B(e) of
    the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) is
    amended by inserting after paragraph (10) (as added by subsection (d))
    the following:
            ``(11) Addressing needs of minority communities.--
                ``(A) Definition of socially disadvantaged group.--In this
            paragraph, the term `socially disadvantaged group' has the
            meaning given the term in section 355(e).
                ``(B) Reservation of funds.--
                    ``(i) In general.--If the total amount appropriated
                under paragraph (12) for a fiscal year exceeds $7,500,000,
                the Secretary shall reserve an amount equal to 20 percent
                of the total amount appropriated for grants for cooperative
                development centers, individual cooperatives, or groups of
                cooperatives--

                        ``(I) that serve socially disadvantaged groups; and
                        ``(II) a majority of the boards of directors or
                    governing boards of which are comprised of individuals
                    who are members of socially disadvantaged groups.

                    ``(ii) Insufficient applications.--To the extent there
                are insufficient applications to carry out clause (i), the
                Secretary shall use the funds as otherwise authorized by
                this subsection.''.
        (f) Authorization of Appropriations.--Paragraph (12) of section
    310B(e) of the Consolidated Farm and Rural Development Act (7 U.S.C.
    1932(e)) (as redesignated by subsection (c)(1)) is amended by striking
    ``1996 through 2007'' and inserting ``2008 through 2012''.
    SEC. 6014. GRANTS TO BROADCASTING SYSTEMS.
        Section 310B(f)(3) of the Consolidated Farm and Rural Development
    Act (7 U.S.C. 1932(f)(3)) is amended by striking ``2002 through 2007''
    and inserting ``2008 through 2012''.
    SEC. 6015. LOCALLY OR REGIONALLY PRODUCED AGRICULTURAL FOOD PRODUCTS.
        Section 310B(g) of the Consolidated Farm and Rural Development Act
    (7 U.S.C. 1932(g)) is amended by adding at the end the following:
            ``(9) Locally or regionally produced agricultural food
        products.--
                ``(A) Definitions.--In this paragraph:
                    ``(i) Locally or regionally produced agricultural food
                product.--The term `locally or regionally produced
                agricultural food product' means any agricultural food
                product that is raised, produced, and distributed in--

                        ``(I) the locality or region in which the final
                    product is marketed, so that the total distance that
                    the product is transported is less than 400 miles from
                    the origin of the product; or
                        ``(II) the State in which the product is produced.

                    ``(ii) Underserved community.--The term `underserved
                community' means a community (including an urban or rural
                community and an Indian tribal community) that has, as
                determined by the Secretary--

                        ``(I) limited access to affordable, healthy foods,
                    including fresh fruits and vegetables, in grocery
                    retail stores or farmer-to-consumer direct markets; and
                        ``(II) a high rate of hunger or food insecurity or
                    a high poverty rate.

                ``(B) Loan and loan guarantee program.--
                    ``(i) In general.--The Secretary shall make or
                guarantee loans to individuals, cooperatives, cooperative
                organizations, businesses, and other entities to establish
                and facilitate enterprises that process, distribute,
                aggregate, store, and market locally or regionally produced
                agricultural food products to support community development
                and farm and ranch income.
                    ``(ii) Requirement.--The recipient of a loan or loan
                guarantee under clause (i) shall include in an appropriate
                agreement with retail and institutional facilities to which
                the recipient sells locally or regionally produced
                agricultural food products a requirement to inform
                consumers of the retail or institutional facilities that
                the consumers are purchasing or consuming locally or
                regionally produced agricultural food products.
                    ``(iii) Priority.--In making or guaranteeing a loan
                under clause (i), the Secretary shall give priority to
                projects that have components benefitting underserved
                communities.
                    ``(iv) Reports.--Not later than 2 years after the date
                of enactment of this paragraph and annually thereafter, the
                Secretary shall submit to the Committee on Agriculture of
                the House of Representatives and the Committee on
                Agriculture, Nutrition, and Forestry of the Senate a report
                that describes projects carried out using loans or loan
                guarantees made under clause (i), including--

                        ``(I) the characteristics of the communities
                    served; and
                        ``(II) resulting benefits.

                    ``(v) Reservation of funds.--

                        ``(I) In general.--For each of fiscal years 2008
                    through 2012, the Secretary shall reserve not less than
                    5 percent of the funds made available to carry out this
                    subsection to carry out this subparagraph.
                        ``(II) Availability of funds.--Funds reserved under
                    subclause (I) for a fiscal year shall be reserved until
                    April 1 of the fiscal year.''.

    SEC. 6016. APPROPRIATE TECHNOLOGY TRANSFER FOR RURAL AREAS.
        Section 310B of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1932) is amended by adding at the end the following:
        ``(i) Appropriate Technology Transfer for Rural Areas Program.--
            ``(1) Definition of national nonprofit agricultural assistance
        institution.--In this subsection, the term `national nonprofit
        agricultural assistance institution' means an organization that--
                ``(A) is described in section 501(c)(3) of the Internal
            Revenue Code of 1986 and exempt from taxation under 501(a) of
            that Code;
                ``(B) has staff and offices in multiple regions of the
            United States;
                ``(C) has experience and expertise in operating national
            agriculture technical assistance programs;
                ``(D) expands markets for the agricultural commodities
            produced by producers through the use of practices that enhance
            the environment, natural resource base, and quality of life;
            and
                ``(E) improves the economic viability of agricultural
            operations.
            ``(2) Establishment.--The Secretary shall establish a national
        appropriate technology transfer for rural areas program to assist
        agricultural producers that are seeking information to--
                ``(A) reduce input costs;
                ``(B) conserve energy resources;
                ``(C) diversify operations through new energy crops and
            energy generation facilities; and
                ``(D) expand markets for agricultural commodities produced
            by the producers by using practices that enhance the
            environment, natural resource base, and quality of life.
            ``(3) Implementation.--
                ``(A) In general.--The Secretary shall carry out the
            program under this subsection by making a grant to, or offering
            to enter into a cooperative agreement with, a national
            nonprofit agricultural assistance institution.
                ``(B) Grant amount.--A grant made, or cooperative agreement
            entered into, under subparagraph (A) shall provide 100 percent
            of the cost of providing information described in paragraph
            (2).
            ``(4) Authorization of appropriations.--There are authorized to
        be appropriated to carry out this subsection $5,000,000 for each of
        fiscal years 2008 through 2012.''.
    SEC. 6017. RURAL ECONOMIC AREA PARTNERSHIP ZONES.
        Section 310B of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1932) (as amended by section 6016) is amended by adding at the
    end the following:
        ``(j) Rural Economic Area Partnership Zones.--Effective beginning
    on the date of enactment of this subsection through September 30, 2012,
    the Secretary shall carry out those rural economic area partnership
    zones administratively in effect on the date of enactment of this
    subsection in accordance with the terms and conditions contained in the
    memorandums of agreement entered into by the Secretary for the rural
    economic area partnership zones, except as otherwise provided in this
    subsection.''.
    SEC. 6018. DEFINITIONS.
        (a) Rural Area.--Section 343(a) of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1991(a)) is amended by striking paragraph
    (13) and inserting the following:
            ``(13) Rural and rural area.--
                ``(A) In general.--Subject to subparagraphs (B) through
            (G), the terms `rural' and `rural area' mean any area other
            than--
                    ``(i) a city or town that has a population of greater
                than 50,000 inhabitants; and
                    ``(ii) any urbanized area contiguous and adjacent to a
                city or town described in clause (i).
                ``(B) Water and waste disposal grants and direct and
            guaranteed loans.--For the purpose of water and waste disposal
            grants and direct and guaranteed loans provided under
            paragraphs (1), (2), and (24) of section 306(a), the terms
            `rural' and `rural area' mean a city, town, or unincorporated
            area that has a population of no more than 10,000 inhabitants.
                ``(C) Community facility loans and grants.--For the purpose
            of community facility direct and guaranteed loans and grants
            under paragraphs (1), (19), (20), (21), and (24) of section
            306(a), the terms `rural' and `rural area' mean any area other
            than a city, town, or unincorporated area that has a population
            of greater than 20,000 inhabitants.
                ``(D) Areas rural in character.--
                    ``(i) Application.--This subparagraph applies to--

                        ``(I) an urbanized area described in subparagraphs
                    (A)(ii) and (F) that--

                            ``(aa) has 2 points on its boundary that are at
                        least 40 miles apart; and
                            ``(bb) is not contiguous or adjacent to a city
                        or town that has a population of greater than
                        150,000 inhabitants or an urbanized area of such
                        city or town; and

                        ``(II) an area within an urbanized area described
                    in subparagraphs (A)(ii) and (F) that is within \1/4\-
                    mile of a rural area described in subparagraph (A).

                    ``(ii) Determination.--Notwithstanding any other
                provision of this paragraph, on the petition of a unit of
                local government in an area described in clause (i) or on
                the initiative of the Under Secretary for Rural
                Development, the Under Secretary may determine that a part
                of an area described in clause (i) is a rural area for the
                purposes of this paragraph, if the Under Secretary finds
                that the part is rural in character, as determined by the
                Under Secretary.
                    ``(iii) Administration.--In carrying out this
                subparagraph, the Under Secretary for Rural Development
                shall--

                        ``(I) not delegate the authority to carry out this
                    subparagraph;
                        ``(II) consult with the applicable rural
                    development State or regional director of the
                    Department of Agriculture and the governor of the
                    respective State;
                        ``(III) provide to the petitioner an opportunity to
                    appeal to the Under Secretary a determination made
                    under this subparagraph;
                        ``(IV) release to the public notice of a petition
                    filed or initiative of the Under Secretary under this
                    subparagraph not later than 30 days after receipt of
                    the petition or the commencement of the initiative, as
                    appropriate;
                        ``(V) make a determination under this subparagraph
                    not less than 15 days, and not more than 60 days, after
                    the release of the notice under subclause (IV);
                        ``(VI) submit to the Committee on Agriculture of
                    the House of Representatives and the Committee on
                    Agriculture, Nutrition, and Forestry of the Senate an
                    annual report on actions taken to carry out this
                    subparagraph; and
                        ``(VII) terminate a determination under this
                    subparagraph that part of an area is a rural area on
                    the date that data is available for the next decennial
                    census conducted under section 141(a) of title 13,
                    United States Code.

                ``(E) Exclusions.--Notwithstanding any other provision of
            this paragraph, in determining which census blocks in an
            urbanized area are not in a rural area (as defined in this
            paragraph), the Secretary shall exclude any cluster of census
            blocks that would otherwise be considered not in a rural area
            only because the cluster is adjacent to not more than 2 census
            blocks that are otherwise considered not in a rural area under
            this paragraph.
                ``(F) Urban area growth.--
                    ``(i) Application.--This subparagraph applies to--

                        ``(I) any area that--

                            ``(aa) is a collection of census blocks that
                        are contiguous to each other;
                            ``(bb) has a housing density that the Secretary
                        estimates is greater than 200 housing units per
                        square mile; and
                            ``(cc) is contiguous or adjacent to an existing
                        boundary of a rural area; and

                        ``(II) any urbanized area contiguous and adjacent
                    to a city or town described in subparagraph (A)(i).

                    ``(ii) Adjustments.--The Secretary may, by regulation
                only, consider--

                        ``(I) an area described in clause (i)(I) not to be
                    a rural area for purposes of subparagraphs (A) and (C);
                    and
                        ``(II) an area described in clause (i)(II) not to
                    be a rural area for purposes of subparagraph (C).

                    ``(iii) Appeals.--A program applicant may appeal an
                estimate made under clause (i)(I) based on appropriate data
                for an area, as determined by the Secretary.
                ``(G) Hawaii and puerto rico.--Notwithstanding any other
            provision of this paragraph, within the areas of the County of
            Honolulu, Hawaii, and the Commonwealth of Puerto Rico, the
            Secretary may designate any part of the areas as a rural area
            if the Secretary determines that the part is not urban in
            character, other than any area included in the Honolulu Census
            Designated Place or the San Juan Census Designated Place.''.
        (b) Report.--Not later than 2 years after the date of enactment of
    this Act, the Secretary shall prepare and submit to the Committee on
    Agriculture of the House of Representatives and the Committee on
    Agriculture, Nutrition, and Forestry of the Senate a report that--
            (1) assesses the various definitions of the term ``rural'' and
        ``rural area'' that are used with respect to programs administered
        by the Secretary;
            (2) describes the effects that the variations in those
        definitions have on those programs;
            (3) make recommendations for ways to better target funds
        provided through rural development programs; and
            (4) determines the effect of the amendment made by subsection
        (a) on the level of rural development funding and participation in
        those programs in each State.
    SEC. 6019. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.
        Section 378 of the Consolidated Farm and Rural Development Act (7
    U.S.C. 2008m) is amended--
            (1) in subsection (g)(1), by striking ``2003 through 2007'' and
        inserting ``2008 through 2012''; and
            (2) in subsection (h), by striking ``the date that is 5 years
        after the date of enactment of this section'' and inserting
        ``September 30, 2012''.
    SEC. 6020. HISTORIC BARN PRESERVATION.
        (a) Grant Priority.--Section 379A(c) of the Consolidated Farm and
    Rural Development Act (7 U.S.C. 2008o(c)) is amended--
            (1) in paragraph (2)--
                (A) in subparagraphs (A) and (B), by striking ``a historic
            barn'' each place it appears and inserting ``historic barns'';
            and
                (B) in subparagraph (C), by striking ``on a historic barn''
            and inserting ``on historic barns (including surveys)'';
            (2) by redesignating paragraphs (3) and (4) as paragraphs (4)
        and (5), respectively; and
            (3) by inserting after paragraph (2) the following:
            ``(3) Priority.--In making grants under this subsection, the
        Secretary shall give the highest priority to funding projects
        described in paragraph (2)(C).''.
        (b) Authorization of Appropriations.--Section 379A(c)(5) of the
    Consolidated Farm and Rural Development Act (7 U.S.C. 2008o(c)(5)) (as
    redesignated by subsection (a)(2)) is amended by striking ``2002
    through 2007'' and inserting ``2008 through 2012''.
    SEC. 6021. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.
        Section 379B(d) of the Consolidated Farm and Rural Development Act
    (7 U.S.C. 2008p(d)) is amended by striking ``2002 through 2007'' and
    inserting ``2008 through 2012''.
    SEC. 6022. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM.
        Subtitle D of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1981 et seq.) is amended by adding at the end the following:
    ``SEC. 379E. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM.
        ``(a) Definitions.--In this section:
            ``(1) Indian tribe.--The term `Indian tribe' has the meaning
        given the term in section 4 of the Indian Self-Determination and
        Education Assistance Act (25 U.S.C. 450b).
            ``(2) Microentrepreneur.--The term `microentrepreneur' means an
        owner and operator, or prospective owner and operator, of a rural
        microenterprise who is unable to obtain sufficient training,
        technical assistance, or credit other than under this section, as
        determined by the Secretary.
            ``(3) Microenterprise development organization.--The term
        `microenterprise development organization' means an organization
        that--
                ``(A) is--
                    ``(i) a nonprofit entity;
                    ``(ii) an Indian tribe, the tribal government of which
                certifies to the Secretary that--

                        ``(I) no microenterprise development organization
                    serves the Indian tribe; and
                        ``(II) no rural microentrepreneur assistance
                    program exists under the jurisdiction of the Indian
                    tribe; or

                    ``(iii) a public institution of higher education;
                ``(B) provides training and technical assistance to rural
            microentrepreneurs;
                ``(C) facilitates access to capital or another service
            described in subsection (b) for rural microenterprises; and
                ``(D) has a demonstrated record of delivering services to
            rural microentrepreneurs, or an effective plan to develop a
            program to deliver services to rural microentrepreneurs, as
            determined by the Secretary.
            ``(4) Microloan.--The term `microloan' means a business loan of
        not more than $50,000 that is provided to a rural microenterprise.
            ``(5) Program.--The term `program' means the rural
        microentrepreneur assistance program established under subsection
        (b).
            ``(6) Rural microenterprise.--The term `rural microenterprise'
        means--
                ``(A) a sole proprietorship located in a rural area; or
                ``(B) a business entity with not more than 10 full-time-
            equivalent employees located in a rural area.
        ``(b) Rural Microentrepreneur Assistance Program.--
            ``(1) Establishment.--The Secretary shall establish a rural
        microentrepreneur assistance program to provide loans and grants to
        support microentrepreneurs in the development and ongoing success
        of rural microenterprises.
            ``(2) Purpose.--The purpose of the program is to provide
        microentrepreneurs with--
                ``(A) the skills necessary to establish new rural
            microenterprises; and
                ``(B) continuing technical and financial assistance related
            to the successful operation of rural microenterprises.
            ``(3) Loans.--
                ``(A) In general.--The Secretary shall make loans to
            microenterprise development organizations for the purpose of
            providing fixed interest rate microloans to microentrepreneurs
            for startup and growing rural microenterprises.
                ``(B) Loan terms.--A loan made by the Secretary to a
            microenterprise development organization under this paragraph
            shall--
                    ``(i) be for a term not to exceed 20 years; and
                    ``(ii) bear an annual interest rate of at least 1
                percent.
                ``(C) Loan loss reserve fund.--The Secretary shall require
            each microenterprise development organization that receives a
            loan under this paragraph to--
                    ``(i) establish a loan loss reserve fund; and
                    ``(ii) maintain the reserve fund in an amount equal to
                at least 5 percent of the outstanding balance of such loans
                owed by the microenterprise development organization, until
                all obligations owed to the Secretary under this paragraph
                are repaid.
                ``(D) Deferral of interest and principal.--The Secretary
            may permit the deferral of payments on principal and interest
            due on a loan to a microenterprise development organization
            made under this paragraph for a 2-year period beginning on the
            date the loan is made.
            ``(4) Grants.--
                ``(A) Grants to support rural microenterprise
            development.--
                    ``(i) In general.--The Secretary shall make grants to
                microenterprise development organizations to--

                        ``(I) provide training, operational support,
                    business planning, and market development assistance,
                    and other related services to rural microentrepreneurs;
                    and
                        ``(II) carry out such other projects and activities
                    as the Secretary determines appropriate to further the
                    purposes of the program.

                    ``(ii) Selection.--In making grants under clause (i),
                the Secretary shall--

                        ``(I) place an emphasis on microenterprise
                    development organizations that serve microentrepreneurs
                    that are located in rural areas that have suffered
                    significant outward migration, as determined by the
                    Secretary; and
                        ``(II) ensure, to the maximum extent practicable,
                    that grant recipients include microenterprise
                    development organizations--

                            ``(aa) of varying sizes; and
                            ``(bb) that serve racially and ethnically
                        diverse populations.
                ``(B) Grants to assist microentrepreneurs.--
                    ``(i) In general.--The Secretary shall make grants to
                microenterprise development organizations to provide
                marketing, management, and other technical assistance to
                microentrepreneurs that--

                        ``(I) received a loan from the microenterprise
                    development organization under paragraph (3); or
                        ``(II) are seeking a loan from the microenterprise
                    development organization under paragraph (3).

                    ``(ii) Maximum amount of grant.--A microenterprise
                development organization shall be eligible to receive an
                annual grant under this subparagraph in an amount equal to
                not more than 25 percent of the total outstanding balance
                of microloans made by the microenterprise development
                organization under paragraph (3), as of the date the grant
                is awarded.
                ``(C) Administrative expenses.--Not more than 10 percent of
            a grant received by a microenterprise development organization
            for a fiscal year under this paragraph may be used to pay
            administrative expenses.
        ``(c) Administration.--
            ``(1) Cost share.--
                ``(A) Federal share.--Subject to subparagraph (B), the
            Federal share of the cost of a project funded under this
            section shall not exceed 75 percent.
                ``(B) Matching requirement.--As a condition of any grant
            made under this subparagraph, the Secretary shall require the
            microenterprise development organization to match not less than
            15 percent of the total amount of the grant in the form of
            matching funds, indirect costs, or in-kind goods or services.
                ``(C) Form of non-federal share.--The non-Federal share of
            the cost of a project funded under this section may be
            provided--
                    ``(i) in cash (including through fees, grants
                (including community development block grants), and gifts);
                or
                    ``(ii) in the form of in-kind contributions.
            ``(2) Oversight.--At a minimum, not later than December 1 of
        each fiscal year, a microenterprise development organization that
        receives a loan or grant under this section shall provide to the
        Secretary such information as the Secretary may require to ensure
        that assistance provided under this section is used for the
        purposes for which the loan or grant was made.
        ``(d) Funding.--
            ``(1) Mandatory funding.--Of the funds of the Commodity Credit
        Corporation, the Secretary shall use to carry out this section, to
        remain available until expended--
                ``(A) $4,000,000 for each of fiscal years 2009 through
            2011; and
                ``(B) $3,000,000 for fiscal year 2012.
            ``(2) Discretionary funding.--In addition to amounts made
        available under paragraph (1), there are authorized to be
        appropriated to carry out this section $40,000,000 for each of
        fiscal years 2009 through 2012.''.
    SEC. 6023. GRANTS FOR EXPANSION OF EMPLOYMENT OPPORTUNITIES FOR
    INDIVIDUALS WITH DISABILITIES IN RURAL AREAS.
        Subtitle D of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1981 et seq.) (as amended by section 6022) is amended by adding
    at the end the following:
    ``SEC. 379F. 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; and
            ``(4) existing relationships with national organizations
        focused primarily on the needs of rural areas.
        ``(d) Uses.--A grant received under this section may be used only
    to expand or enhance--
            ``(1) employment opportunities for individuals with
        disabilities in rural areas by developing national technical
        assistance and education resources to assist small businesses in a
        rural area to recruit, hire, accommodate, and employ individuals
        with disabilities; and
            ``(2) self-employment and entrepreneurship opportunities for
        individuals with disabilities in a rural area.
        ``(e) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $2,000,000 for each of fiscal
    years 2008 through 2012.''.
    SEC. 6024. HEALTH CARE SERVICES.
        Subtitle D of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1981 et seq.) (as amended by section 6023) is amended by adding
    at the end the following:
    ``SEC. 379G. HEALTH CARE SERVICES.
        ``(a) Purpose.--The purpose of this section is to address the
    continued unmet health needs in the Delta region through cooperation
    among health care professionals, institutions of higher education,
    research institutions, and other individuals and entities in the
    region.
        ``(b) Definition of Eligible Entity.--In this section, the term
    `eligible entity' means a consortium of regional institutions of higher
    education, academic health and research institutes, and economic
    development entities located in the Delta region that have experience
    in addressing the health care issues in the region.
        ``(c) Grants.--To carry out the purpose described in subsection
    (a), the Secretary may award a grant to an eligible entity for -
            ``(1) the development of -
                ``(A) health care services;
                ``(B) health education programs; and
                ``(C) health care job training programs; and
            ``(2) the development and expansion of public health-related
        facilities in the Delta region to address longstanding and unmet
        health needs of the region.
        ``(d) Use.--As a condition of the receipt of the grant, the
    eligible entity shall use the grant to fund projects and activities
    described in subsection (c), based on input solicited from local
    governments, public health care providers, and other entities in the
    Delta region.
        ``(e) Authorization of Appropriations.--There is authorized to be
    appropriated to the Secretary to carry out this section, $3,000,000 for
    each of fiscal years 2008 through 2012.''.
    SEC. 6025. DELTA REGIONAL AUTHORITY.
        (a) Authorization of Appropriations.--Section 382M(a) of the
    Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-12(a)) is
    amended by striking ``2001 through 2007'' and inserting ``2008 through
    2012''.
        (b) Termination of Authority.--Section 382N of the Consolidated
    Farm and Rural Development Act (7 U.S.C. 2009aa-13) is amended by
    striking ``2007'' and inserting ``2012''.
        (c) Expansion.--Section 4(2) of the Delta Development Act (42
    U.S.C. 3121 note; Public Law 100-460) is amended--
            (1) in subparagraph (D), by inserting ``Beauregard, Bienville,
        Cameron, Claiborne, DeSoto, Jefferson Davis, Red River, St. Mary,
        Vermillion, Webster,'' after ``St. James,''; and
            (2) in subparagraph (E)--
                (A) by inserting ``Jasper,'' after ``Copiah,''; and
                (B) by inserting ``Smith,'' after ``Simpson,''.
    SEC. 6026. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.
        (a) Definition of Region.--Section 383A(4) of the Consolidated Farm
    and Rural Development Act (7 U.S.C. 2009bb(4)) is amended by inserting
    ``Missouri (other than counties included in the Delta Regional
    Authority),'' after ``Minnesota,''.
        (b) Establishment.--Section 383B of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 2009bb-1) is amended--
            (1) in subsection (a), by adding at the end the following:
            ``(4) Failure to confirm.--
                ``(A) Federal member.--Notwithstanding any other provision
            of this section, if a Federal member described in paragraph
            (2)(A) has not been confirmed by the Senate by not later than
            180 days after the date of enactment of this paragraph, the
            Authority may organize and operate without the Federal member.
                ``(B) Indian chairperson.--In the case of the Indian
            Chairperson, if no Indian Chairperson is confirmed by the
            Senate, the regional authority shall consult and coordinate
            with the leaders of Indian tribes in the region concerning the
            activities of the Authority, as appropriate.'';
            (2) in subsection (d)--
                (A) in paragraph (1), by striking ``to establish priorities
            and'' and inserting ``for multistate cooperation to advance the
            economic and social well-being of the region and to'';
                (B) in paragraph (3), by striking ``local development
            districts,'' and inserting ``regional and local development
            districts or organizations, regional boards established under
            subtitle I,'';
                (C) in paragraph (4), by striking ``cooperation;'' and
            inserting ``cooperation for--
                    ``(i) renewable energy development and transmission;
                    ``(ii) transportation planning and economic
                development;
                    ``(iii) information technology;
                    ``(iv) movement of freight and individuals within the
                region;
                    ``(v) federally-funded research at institutions of
                higher education; and
                    ``(vi) conservation land management;'';
                (D) by striking paragraph (6) and inserting the following:
            ``(6) enhance the capacity of, and provide support for,
        multistate development and research organizations, local
        development organizations and districts, and resource conservation
        districts in the region;''; and
                (E) in paragraph (7), by inserting ``renewable energy,''
            after ``commercial,''.
            (3) in subsection (f)(2), by striking ``the Federal
        cochairperson'' and inserting ``a cochairperson'';
            (4) in subsection (g)(1), by striking subparagraphs (A) through
        (C) and inserting the following:
                ``(A) for each of fiscal years 2008 and 2009, 100 percent;
                ``(B) for fiscal year 2010, 75 percent; and
                ``(C) for fiscal year 2011 and each fiscal year thereafter,
            50 percent.''.
        (c) Interstate Cooperation for Economic Opportunity and
    Efficiency.--
            (1) In general.--Subtitle G of the Consolidated Farm and Rural
        Development Act is amended--
                (A) by redesignating sections 383C through 383N (7 U.S.C.
            2009bb-2 through 2009bb-13) as sections 383D through 383O,
            respectively; and
                (B) by inserting after section 383B (7 U.S.C. 2009bb-1) the
            following:
    ``SEC. 383C. 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 address regional transportation concerns, including
        the establishment of a Northern Great Plains Regional
        Transportation Working Group;
            ``(3) to encourage and support interstate collaboration on
        federally-funded research that is in the national interest; and
            ``(4) to establish a Regional Working Group on Agriculture
        Development and Transportation.
        ``(b) Economic Issues.--The multistate economic issues referred to
    in subsection (a) shall include--
            ``(1) renewable energy development and transmission;
            ``(2) transportation planning and economic development;
            ``(3) information technology;
            ``(4) movement of freight and individuals within the region;
            ``(5) federally-funded research at institutions of higher
        education; and
            ``(6) conservation land management.''.
            (2) Conforming amendments.--
                (A) Section 383B(c)(3)(B) of the Consolidated Farm and
            Rural Development Act (7 U.S.C. 2009bb-1(c)(3)(B)) is amended
            by striking ``383I'' and inserting ``383J''.
                (B) Section 383D(a) of the Consolidated Farm and Rural
            Development Act (as redesignated by paragraph (1)(A)) is
            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''.
        (d) Economic and Community Development Grants.--Section 383D of the
    Consolidated Farm and Rural Development Act (as redesignated by
    subsection (c)(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''.
        (e) Supplements to Federal Grant Programs.--Section 383E(a) of the
    Consolidated Farm and Rural Development Act (as redesignated by
    subsection (c)(1)(A)) is amended by striking ``, including local
    development districts,''.
        (f) Multistate and Local Development Districts and Organizations
    and Northern Great Plains Inc.--Section 383F of the Consolidated Farm
    and Rural Development Act (as redesignated by subsection (c)(1)(A)) is
    amended--
            (1) by striking the section heading and inserting ``multistate
        and local development districts and organizations and northern
        great plains inc.''; and
            (2) by striking subsections (a) through (c) and inserting the
        following:
        ``(a) Definition of Multistate and Local Development District or
    Organization.--In this section, the term `multistate and local
    development district or organization' means an entity--
            ``(1) that--
                ``(A) is a planning district in existence on the date of
            enactment of this subtitle that is recognized by the Economic
            Development Administration of the Department of Commerce; or
                ``(B) is--
                    ``(i) organized and operated in a manner that ensures
                broad-based community participation and an effective
                opportunity for other nonprofit groups to contribute to the
                development and implementation of programs in the region;
                    ``(ii) a nonprofit incorporated body organized or
                chartered under the law of the State in which the entity is
                located;
                    ``(iii) a nonprofit agency or instrumentality of a
                State or local government;
                    ``(iv) a public organization established before the
                date of enactment of this subtitle under State law for
                creation of multijurisdictional, area-wide planning
                organizations;
                    ``(v) a nonprofit agency or instrumentality of a State
                that was established for the purpose of assisting with
                multistate cooperation; or
                    ``(vi) a nonprofit association or combination of
                bodies, agencies, and instrumentalities described in
                clauses (ii) through (v); and
            ``(2) that has not, as certified by the Authority (in
        consultation with the Federal cochairperson or Secretary, as
        appropriate)--
                ``(A) inappropriately used Federal grant funds from any
            Federal source; or
                ``(B) appointed an officer who, during the period in which
            another entity inappropriately used Federal grant funds from
            any Federal source, was an officer of the other entity.
        ``(b) Grants to Multistate, Local, or Regional Development
    Districts and Organizations.--
            ``(1) In general.--The Authority may make grants for
        administrative expenses under this section to multistate, local,
        and regional development districts and organizations.
            ``(2) Conditions for grants.--
                ``(A) Maximum amount.--The amount of any grant awarded
            under paragraph (1) shall not exceed 80 percent of the
            administrative expenses of the multistate, local, or regional
            development district or organization receiving the grant.
                ``(B) Maximum period.--No grant described in paragraph (1)
            shall be awarded for a period greater than 3 years.
            ``(3) Local share.--The contributions of a multistate, local,
        or regional development district or organization for administrative
        expenses may be in cash or in kind, fairly evaluated, including
        space, equipment, and services.
        ``(c) Duties.--
            ``(1) In general.--Except as provided in paragraph (2), a local
        development district shall operate as a lead organization serving
        multicounty areas in the region at the local level.
            ``(2) Designation.--The Federal cochairperson may designate an
        Indian tribe or multijurisdictional organization to serve as a lead
        organization in such cases as the Federal cochairperson or
        Secretary, as appropriate, determines appropriate.''.
        (g) Distressed Counties and Areas and Nondistressed Counties.--
    Section 383G of the Consolidated Farm and Rural Development Act (as
    redesignated by subsection (c)(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,''.
        (h) Development Planning Process.--Section 383H of the Consolidated
    Farm and Rural Development Act (as redesignated by subsection
    (c)(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''.
        (i) Program Development Criteria.--Section 383I(a)(1) of the
    Consolidated Farm and Rural Development Act (as redesignated by
    subsection (c)(1)(A)) is amended by inserting ``multistate or'' before
    ``regional''.
        (j) Authorization of Appropriations.--Section 383N(a) of the
    Consolidated Farm and Rural Development Act (as redesignated by
    subsection (c)(1)(A)) is amended by striking ``2002 through 2007'' and
    inserting ``2008 through 2012''.
        (k) Termination of Authority.--Section 383O of the Consolidated
    Farm and Rural Development Act (as redesignated by subsection
    (c)(1)(A)) is amended by striking ``2007'' and inserting ``2012''.
    SEC. 6027. RURAL BUSINESS INVESTMENT PROGRAM.
        (a) Issuance and Guarantee of Trust Certificates.--Section
    384F(b)(3)(A) of the Consolidated Farm and Rural Development Act (7
    U.S.C. 2009cc-5(b)(3)(A)) is amended by striking ``In the event'' and
    inserting the following:
                    ``(i) Authority to prepay.--A debenture may be prepaid
                at any time without penalty.
                    ``(ii) Reduction of guarantee.--Subject to clause (i),
                if''.
        (b) Fees.--Section 384G of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 2009cc-6) is amended--
            (1) in subsection (a), by striking ``such fees as the Secretary
        considers appropriate'' and inserting ``a fee that does not exceed
        $500'';
            (2) in subsection (b), by striking ``approved by the
        Secretary'' and inserting ``that does not exceed $500''; and
            (3) in subsection (c)--
                (A) in paragraph (1), by striking ``The'' and inserting
            ``Except as provided in paragraph (3), the'';
                (B) in paragraph (2)--
                    (i) in subparagraph (A), by striking ``and'' at the
                end;
                    (ii) in subparagraph (B), by striking the period at the
                end and inserting ``; and''; and
                    (iii) by adding at the end the following:
                ``(C) shall not exceed $500 for any fee collected under
            this subsection.''; and
                (C) by adding at the end the following:
            ``(3) Prohibition on collection of certain fees.--In the case
        of a license described in paragraph (1) that was approved before
        July 1, 2007, the Secretary shall not collect any fees due on or
        after the date of enactment of this paragraph.''.
        (c) Rural Business Investment Companies.--Section 384I(c) of the
    Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-8(c)) is
    amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following:
            ``(3) Time frame.--Each rural business investment company shall
        have a period of 2 years to meet the capital requirements of this
        subsection.''.
        (d) Financial Institution Investments.--Section 384J of the
    Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-9) is
    amended--
            (1) in subsection (a)(1), by inserting ``, including an
        investment pool created entirely by such bank or savings
        association'' before the period at the end; and
            (2) in subsection (c), by striking ``15'' and inserting ``25''.
        (e) Contracting of Functions.--Section 384Q of the Consolidated
    Farm and Rural Development Act (7 U.S.C. 2009cc-16) is repealed.
        (f) Funding.--The Consolidated Farm and Rural Development Act is
    amended by striking section 384S (7 U.S.C. 2009cc-18) and inserting the
    following:
    ``SEC. 384S. AUTHORIZATION OF APPROPRIATIONS.
        ``There is authorized to be appropriated to carry out this subtitle
    $50,000,000 for the period of fiscal years 2008 through 2012.''.
    SEC. 6028. RURAL COLLABORATIVE INVESTMENT PROGRAM.
        Subtitle I of the Consolidated Farm and Rural Development Act (7
    U.S.C. 2009dd et seq.) is amended to read as follows:

              ``Subtitle I--Rural Collaborative Investment Program

    ``SEC. 385A. 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, in order to achieve measurable community and economic
        prosperity, growth, and sustainability.
    ``SEC. 385B. DEFINITIONS.
        ``In this subtitle:
            ``(1) Benchmark.--The term `benchmark' means an annual set of
        goals and performance measures established for the purpose of
        assessing performance in meeting a regional investment strategy of
        a Regional Board.
            ``(2) Indian tribe.--The term `Indian tribe' has the meaning
        given the term in section 4 of the Indian Self-Determination and
        Education Assistance Act (25 U.S.C. 450b).
            ``(3) National board.--The term `National Board' means the
        National Rural Investment Board established under section 385C(c).
            ``(4) National institute.--The term `National Institute' means
        the National Institute on Regional Rural Competitiveness and
        Entrepreneurship established under section 385C(b)(2).
            ``(5) Regional board.--The term `Regional Board' means a
        Regional Rural Investment Board described in section 385D(a).
            ``(6) Regional innovation grant.--The term `regional innovation
        grant' means a grant made by the Secretary to a certified Regional
        Board under section 385F.
            ``(7) Regional investment strategy grant.--The term `regional
        investment strategy grant' means a grant made by the Secretary to a
        certified Regional Board under section 385E.
            ``(8) Rural heritage.--
                ``(A) In general.--The term `rural heritage' means historic
            sites, structures, and districts.
                ``(B) Inclusions.--The term `rural heritage' includes
            historic rural downtown areas and main streets, neighborhoods,
            farmsteads, scenic and historic trails, heritage areas, and
            historic landscapes.
    ``SEC. 385C. 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 that shall--
                ``(A) create a framework to encourage and support a more
            collaborative and targeted rural investment portfolio in the
            United States;
                ``(B) establish a Rural Philanthropic Initiative, to work
            with rural communities to create and enhance the pool of
            permanent philanthropic resources committed to rural community
            and economic development;
                ``(C) cooperate with the Regional Boards and State and
            local governments, organizations, and entities to ensure
            investment strategies are developed that take into
            consideration existing rural assets; and
                ``(D) encourage the organization of Regional Boards;
            ``(4) 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 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; and
            ``(2) provide advice to--
                ``(A) the Secretary and subsequently review the design,
            development, and execution of the National Rural Investment
            Plan;
                ``(B) Regional Boards on issues, best practices, and
            emerging trends relating to rural development; and
                ``(C) the Secretary and the National Institute on the
            development and execution of the program under this subtitle.
        ``(e) Membership.--
            ``(1) In general.--The National Board shall consist of 14
        members appointed by the Secretary not later than 180 days after
        the date of enactment of the Food, Conservation, and Energy Act of
        2008.
            ``(2) Supervision.--The National Board shall be subject to the
        general supervision and direction of the Secretary.
            ``(3) Sectors represented.--The National Board shall consist of
        representatives from each of--
                ``(A) nationally recognized entrepreneurship organizations;
                ``(B) regional strategy and development organizations;
                ``(C) community-based organizations;
                ``(D) elected members of local governments;
                ``(E) members of State legislatures;
                ``(F) primary, secondary, and higher education, job skills
            training, and workforce development institutions;
                ``(G) the rural philanthropic community;
                ``(H) financial, lending, venture capital,
            entrepreneurship, and other related institutions;
                ``(I) private sector business organizations, including
            chambers of commerce and other for-profit business interests;
                ``(J) Indian tribes; and
                ``(K) cooperative organizations.
            ``(4) Selection of members.--
                ``(A) In general.--In selecting members of the National
            Board, the Secretary shall consider recommendations made by--
                    ``(i) the chairman and ranking member of each of the
                Committee on Agriculture of the House of Representatives
                and the Committee on Agriculture, Nutrition, and Forestry
                of the Senate;
                    ``(ii) the Majority Leader and Minority Leader of the
                Senate; and
                    ``(iii) the Speaker and Minority Leader of the House of
                Representatives.
                ``(B) Ex-officio members.--In consultation with the
            chairman and ranking member of each of the Committee on
            Agriculture of the House of Representatives and the Committee
            on Agriculture, Nutrition, and Forestry of the Senate, the
            Secretary may appoint not more than 3 other officers or
            employees of the Executive Branch to serve as ex-officio,
            nonvoting members of the National Board.
            ``(5) Term of office.--
                ``(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 1 year after the
        date of enactment of the Food, Conservation, and Energy Act of
        2008, the Secretary shall appoint the initial members of the
        National Board.
            ``(7) Vacancies.--A vacancy on the National Board shall be
        filled in the same manner as the original appointment.
            ``(8) Compensation.--A member of the National Board shall
        receive no compensation for service on the National Board, but
        shall be reimbursed for related travel and other expenses incurred
        in carrying out the duties of the member of the National Board in
        accordance with section 5702 and 5703 of title 5, United States
        Code.
            ``(9) Chairperson.--The National Board shall select a
        chairperson from among the members of the National Board.
            ``(10) Federal status.--For purposes of Federal law, a member
        of the National Board shall be considered a special Government
        employee (as defined in section 202(a) of title 18, United States
        Code).
        ``(f) Administrative Support.--The Secretary, on a reimbursable
    basis from funds made available under section 385H, may provide such
    administrative support to the National Board as the Secretary
    determines is necessary.
    ``SEC. 385D. 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, multijurisdictional, or State
            government, including not more than 1 representative from each
            State in the region;
                ``(B) nonprofit community-based development organizations,
            including community development financial institutions and
            community development corporations;
                ``(C) agricultural, natural resource, and other asset-based
            related industries;
                ``(D) in the case of regions with federally recognized
            Indian tribes, Indian tribes;
                ``(E) regional development organizations;
                ``(F) private business organizations, including chambers of
            commerce;
                ``(G)(i) institutions of higher education (as defined in
            section 101(a) of the Higher Education Act of 1965 (20 U.S.C.
            1001(a)));
                ``(ii) tribally controlled colleges or universities (as
            defined in section 2(a) of Tribally Controlled College or
            University Assistance Act of 1978 (25 U.S.C. 1801(a))); and
                ``(iii) tribal technical institutions;
                ``(H) workforce and job training organizations;
                ``(I) other entities and organizations, as determined by
            the Regional Board;
                ``(J) cooperatives; and
                ``(K) consortia of entities and organizations described in
            subparagraphs (A) through (J);
            ``(4) represents a region inhabited by--
                ``(A) more than 25,000 individuals, as determined in the
            latest available decennial census conducted under section
            141(a) of title 13, United States Code; or
                ``(B) in the case of a region with a population density of
            less than 2 individuals per square mile, at least 10,000
            individuals, as determined in that latest available decennial
            census;
            ``(5) has a membership of which not less than 25 percent, nor
        more than 40 percent, represents--
                ``(A) units of local government and Indian tribes described
            in subparagraphs (A) and (D) of paragraph (3);
                ``(B) nonprofit community and economic development
            organizations and institutions of higher education described in
            subparagraphs (B) and (G) of paragraph (3); or
                ``(C) private business (including chambers of commerce and
            cooperatives) and agricultural, natural resource, and other
            asset-based related industries described in subparagraphs (C)
            and (F) of paragraph (3);
            ``(6) has a membership that may include an officer or employee
        of a Federal agency, serving as an ex-officio, nonvoting member of
        the Regional Board to represent the agency; and
            ``(7) has organizational documents that demonstrate that the
        Regional Board will--
                ``(A) create a collaborative public-private strategy
            process;
                ``(B) develop, and submit to the Secretary for approval, a
            regional investment strategy that meets the requirements of
            section 385E, with benchmarks--
                    ``(i) to promote investment in rural areas through the
                use of grants made available under this subtitle; and
                    ``(ii) to provide financial and technical assistance to
                promote a broad-based regional development program aimed at
                increasing and diversifying economic growth, improved
                community facilities, and improved quality of life;
                ``(C) implement the approved regional investment strategy;
                ``(D) provide annual reports to the Secretary and the
            National Board on progress made in achieving the benchmarks of
            the regional investment strategy, including an annual financial
            statement; and
                ``(E) select a non-Federal organization (such as a regional
            development organization) in the local area served by the
            Regional Board that has previous experience in the management
            of Federal funds to serve as fiscal manager of any funds of the
            Regional Board.
        ``(b) Urban Areas.--A resident of an urban area may serve as an ex-
    officio member of a Regional Board.
        ``(c) Duties.--A Regional Board shall--
            ``(1) create a collaborative planning process for public-
        private investment within a region;
            ``(2) develop, and submit to the Secretary for approval, a
        regional investment strategy;
            ``(3) develop approaches that will create permanent resources
        for philanthropic giving in the region, to the maximum extent
        practicable;
            ``(4) implement an approved strategy; and
            ``(5) provide annual reports to the Secretary and the National
        Board on progress made in achieving the strategy, including an
        annual financial statement.
    ``SEC. 385E. REGIONAL INVESTMENT STRATEGY GRANTS.
        ``(a) In General.--The Secretary shall make regional investment
    strategy grants available to Regional Boards for use in developing,
    implementing, and maintaining regional investment strategies.
        ``(b) Regional Investment Strategy.--A regional investment strategy
    shall provide--
            ``(1) an assessment of the competitive advantage of a region,
        including--
                ``(A) an analysis of the economic conditions of the region;
                ``(B) an assessment of the current economic performance of
            the region;
                ``(C) an overview of the population, geography, workforce,
            transportation system, resources, environment, and
            infrastructure needs of the region; and
                ``(D) such other pertinent information as the Secretary may
            request;
            ``(2) an analysis of regional economic and community
        development challenges and opportunities, including--
                ``(A) incorporation of relevant material from other
            government-sponsored or supported plans and consistency with
            applicable State, regional, and local workforce investment
            strategies or comprehensive economic development plans; and
                ``(B) an identification of past, present, and projected
            Federal and State economic and community development
            investments in the region;
            ``(3) a section describing goals and objectives necessary to
        solve regional competitiveness challenges and meet the potential of
        the region;
            ``(4) an overview of resources available in the region for use
        in--
                ``(A) establishing regional goals and objectives;
                ``(B) developing and implementing a regional action
            strategy;
                ``(C) identifying investment priorities and funding
            sources; and
                ``(D) identifying lead organizations to execute portions of
            the strategy;
            ``(5) an analysis of the current state of collaborative public,
        private, and nonprofit participation and investment, and of the
        strategic roles of public, private, and nonprofit entities in the
        development and implementation of the regional investment strategy;
            ``(6) a section identifying and prioritizing vital projects,
        programs, and activities for consideration by the Secretary,
        including--
                ``(A) other potential funding sources; and
                ``(B) recommendations for leveraging past and potential
            investments;
            ``(7) a plan of action to implement the goals and objectives of
        the regional investment strategy;
            ``(8) a list of performance measures to be used to evaluate
        implementation of the regional investment strategy, including--
                ``(A) the number and quality of jobs, including self-
            employment, created during implementation of the regional rural
            investment strategy;
                ``(B) the number and types of investments made in the
            region;
                ``(C) the growth in public, private, and nonprofit
            investment in the human, community, and economic assets of the
            region;
                ``(D) changes in per capita income and the rate of
            unemployment; and
                ``(E) other changes in the economic environment of the
            region;
            ``(9) a section outlining the methodology for use in
        integrating the regional investment strategy with the economic
        priorities of the State; and
            ``(10) such other information as the Secretary determines to be
        appropriate.
        ``(c) Maximum Amount of Grant.--A regional investment strategy
    grant shall not exceed $150,000.
        ``(d) Cost Sharing.--
            ``(1) In general.--Subject to paragraph (2), of the share of
        the costs of developing, maintaining, evaluating, implementing, and
        reporting with respect to a regional investment strategy funded by
        a grant under this section--
                ``(A) not more than 40 percent may be paid using funds from
            the grant; and
                ``(B) the remaining share shall be provided by the
            applicable Regional Board or other eligible grantee.
            ``(2) Form.--A Regional Board or other eligible grantee shall
        pay the share described in paragraph (1)(B) in the form of cash,
        services, materials, or other in-kind contributions, on the
        condition that not more than 50 percent of that share is provided
        in the form of services, materials, and other in-kind
        contributions.
    ``SEC. 385F. 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.--To be eligible to receive a regional innovation
    grant, a Regional Board shall demonstrate to the Secretary that--
            ``(1) the regional rural investment strategy of a Regional
        Board has been reviewed by the National Board prior to approval by
        the Secretary;
            ``(2) the management and organizational structure of the
        Regional Board is sufficient to oversee grant projects, including
        management of Federal funds; and
            ``(3) the Regional Board has a plan to achieve, to the maximum
        extent practicable, the performance-based benchmarks of the project
        in the regional rural investment strategy.
        ``(c) Limitations.--
            ``(1) Amount received.--A Regional Board may not receive more
        than $6,000,000 in regional innovation grants under this section
        during any 5-year period.
            ``(2) Determination of amount.--The Secretary shall determine
        the amount of a regional innovation grant based on--
                ``(A) the needs of the region being addressed by the
            applicable regional rural investment strategy consistent with
            the purposes described in subsection (f)(2); and
                ``(B) the size of the geographical area of the region.
            ``(3) Geographic diversity.--The Secretary shall ensure that
        not more than 10 percent of funding made available under this
        section is provided to Regional Boards in any State.
        ``(d) Cost-Sharing.--
            ``(1) Limitation.--Subject to paragraph (2), the amount of a
        grant made under this section shall not exceed 50 percent of the
        cost of the project.
            ``(2) Waiver of grantee share.--The Secretary may waive the
        limitation in paragraph (1) under special circumstances, as
        determined by the Secretary, including--
                ``(A) a sudden or severe economic dislocation;
                ``(B) significant chronic unemployment or poverty;
                ``(C) a natural disaster; or
                ``(D) other severe economic, social, or cultural duress.
            ``(3) Other federal assistance.--For the purpose of determining
        cost-share limitations for any other Federal program, funds
        provided under this section shall be considered to be non-Federal
        funds.
        ``(e) Preferences.--In providing regional innovation grants under
    this section, the Secretary shall give--
            ``(1) a high priority to strategies that demonstrate
        significant leverage of capital and quality job creation; and
            ``(2) a preference to an application proposing projects and
        initiatives that would--
                ``(A) advance the overall regional competitiveness of a
            region;
                ``(B) address the priorities of a regional rural investment
            strategy, including priorities that--
                    ``(i) promote cross-sector collaboration, public-
                private partnerships, or the provision of interim financing
                or seed capital for program implementation;
                    ``(ii) exhibit collaborative innovation and
                entrepreneurship, particularly within a public-private
                partnership; and
                    ``(iii) represent a broad coalition of interests
                described in section 385D(a);
                ``(C) include a strategy to leverage public non-Federal and
            private funds and existing assets, including agricultural,
            natural resource, and public infrastructure assets, with
            substantial emphasis placed on the existence of real financial
            commitments to leverage available funds;
                ``(D) create quality jobs;
                ``(E) enhance the role, relevance, and leveraging potential
            of community and regional foundations in support of regional
            investment strategies;
                ``(F) demonstrate a history, or involve organizations with
            a history, of successful leveraging of capital for economic
            development and public purposes;
                ``(G) address gaps in existing basic services, including
            technology, within a region;
                ``(H) address economic diversification, including
            agricultural and non-agriculturally based economies, within a
            regional framework;
                ``(I) improve the overall quality of life in the region;
                ``(J) enhance the potential to expand economic development
            successes across diverse stakeholder groups within the region;
                ``(K) include an effective working relationship with 1 or
            more institutions of higher education, tribally controlled
            colleges or universities, or tribal technical institutions;
                ``(L) help to meet the other regional competitiveness needs
            identified by a Regional Board; or
                ``(M) protect and promote rural heritage.
        ``(f) Uses.--
            ``(1) Leverage.--A Regional Board shall prioritize projects and
        initiatives carried out using funds from a regional innovation
        grant provided under this section, based in part on the degree to
        which members of the Regional Board are able to leverage additional
        funds for the implementation of the projects.
            ``(2) Purposes.--A Regional Board may use a regional innovation
        grant--
                ``(A) to support the development of critical infrastructure
            (including technology deployment and services) necessary to
            facilitate the competitiveness of a region;
                ``(B) to provide assistance to entities within the region
            that provide essential public and community services;
                ``(C) to enhance the value-added production, marketing, and
            use of agricultural and natural resources within the region,
            including activities relating to renewable and alternative
            energy production and usage;
                ``(D) to assist with entrepreneurship, job training,
            workforce development, housing, educational, or other quality
            of life services or needs, relating to the development and
            maintenance of strong local and regional economies;
                ``(E) to assist in the development of unique new
            collaborations that link public, private, and philanthropic
            resources, including community foundations;
                ``(F) to provide support for business and entrepreneurial
            investment, strategy, expansion, and development, including
            feasibility strategies, technical assistance, peer networks,
            business development funds, and other activities to strengthen
            the economic competitiveness of the region;
                ``(G) to provide matching funds to enable community
            foundations located within the region to build endowments which
            provide permanent philanthropic resources to implement a
            regional investment strategy; and
                ``(H) to preserve and promote rural heritage.
            ``(3) Availability of funds.--The funds made available to a
        Regional Board or any other eligible grantee through a regional
        innovation grant shall remain available for the 7-year period
        beginning on the date on which the award is provided, on the
        condition that the Regional Board or other grantee continues to be
        certified by the Secretary as making adequate progress toward
        achieving established benchmarks.
        ``(g) Cost Sharing.--
            ``(1) Waiver of grantee share.--The Secretary may waive the
        share of a grantee of the costs of a project funded by a regional
        innovation grant under this section if the Secretary determines
        that such a waiver is appropriate, including with respect to
        special circumstances within tribal regions, in the event an area
        experiences--
                ``(A) a sudden or severe economic dislocation;
                ``(B) significant chronic unemployment or poverty;
                ``(C) a natural disaster; or
                ``(D) other severe economic, social, or cultural duress.
            ``(2) Other federal programs.--For the purpose of determining
        cost-sharing requirements for any other Federal program, funds
        provided as a regional innovation grant under this section shall be
        considered to be non-Federal funds.
        ``(h) Noncompliance.--If a Regional Board or other eligible grantee
    fails to comply with any requirement relating to the use of funds
    provided under this section, the Secretary may--
            ``(1) take such actions as are necessary to obtain
        reimbursement of unused grant funds; and
            ``(2) reprogram the recaptured funds for purposes relating to
        implementation of this subtitle.
        ``(i) Priority to Areas With Awards and Approved Strategies.--
            ``(1) In general.--Subject to paragraph (3), in providing rural
        development assistance under other programs, the Secretary shall
        give a high priority to areas that receive innovation grants under
        this section.
            ``(2) Consultation.--The Secretary shall consult with the heads
        of other Federal agencies to promote the development of priorities
        similar to those described in paragraph (1).
            ``(3) Exclusion of certain programs.--Paragraph (1) shall not
        apply to the provision of rural development assistance under any
        program relating to basic health, safety, or infrastructure,
        including broadband deployment or minimum environmental needs.
    ``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 in a manner that is targeted to
        community and economic development, including through the
        development of community foundation endowments.
        ``(c) Terms.--A loan made under this section shall--
            ``(1) have a term of not less than 10, nor more than 20, years;
            ``(2) bear an interest rate of 1 percent per annum; and
            ``(3) be subject to such other terms and conditions as are
        determined appropriate by the Secretary.
    ``SEC. 385H. AUTHORIZATION OF APPROPRIATIONS.
        ``There are authorized to be appropriated to carry out this
    subtitle $135,000,000 for the period of fiscal years 2009 through
    2012.''.
    SEC. 6029. FUNDING OF PENDING RURAL DEVELOPMENT LOAN AND GRANT
    APPLICATIONS.
        (a) Definition of Application.--In this section, the term
    ``application'' does not include an application for a loan or grant
    that, as of the date of enactment of this Act, is in the preapplication
    phase of consideration under regulations of the Secretary in effect on
    the date of enactment of this Act.
        (b) Use of Funds.--Subject to subsection (c), the Secretary shall
    use funds made available under subsection (d) to provide funds for
    applications that are pending on the date of enactment of this Act
    for--
            (1) water or waste disposal grants or direct loans under
        paragraph (1) or (2) of section 306(a) of the Consolidated Farm and
        Rural Development Act (7 U.S.C. 1926(a)); and
            (2) emergency community water assistance grants under section
        306A of that Act (7 U.S.C. 1926a).
        (c) Limitations.--
            (1) Appropriated amounts.--Funds made available under this
        section shall be available to the Secretary to provide funds for
        applications for loans and grants described in subsection (b) that
        are pending on the date of enactment of this Act only to the extent
        that funds for the loans and grants appropriated in the annual
        appropriations Act for fiscal year 2007 have been exhausted.
            (2) Program requirements.--The Secretary may use funds made
        available under this section to provide funds for a pending
        application for a loan or grant described in subsection (b) only if
        the Secretary processes, reviews, and approves the application in
        accordance with regulations in effect on the date of enactment of
        this Act.
            (3) Priority.--In providing funding under this section for
        pending applications for loans or grants described in subsection
        (b), the Secretary shall provide funding in the following order of
        priority (until funds made available under this section are
        exhausted):
                (A) Pending applications for water systems.
                (B) Pending applications for waste disposal systems.
        (d) Funding.--Notwithstanding any other provision of law, of the
    funds of the Commodity Credit Corporation, the Secretary shall use to
    carry out this section $120,000,000, to remain available until
    expended.

                 Subtitle B--Rural Electrification Act of 1936

    SEC. 6101. ENERGY EFFICIENCY PROGRAMS.
        Sections 2(a) and 4 of the Rural Electrification Act of 1936 (7
    U.S.C. 902(a), 904) are amended by inserting ``efficiency and'' before
    ``conservation'' each place it appears.
    SEC. 6102. REINSTATEMENT OF RURAL UTILITY SERVICES DIRECT LENDING.
        (a) In General.--Section 4 of the Rural Electrification Act of 1936
    (7 U.S.C. 904) is amended--
            (1) by designating the first, second, and third sentences as
        subsections (a), (b), and (d), respectively; and
            (2) by inserting after subsection (b) (as so designated) the
        following:
        ``(c) Direct Loans.--
            ``(1) Direct hardship loans.--Direct hardship loans under this
        section shall be for the same purposes and on the same terms and
        conditions as hardship loans made under section 305(c)(1).
            ``(2) Other direct loans.--All other direct loans under this
        section shall bear interest at a rate equal to the then current
        cost of money to the Government of the United States for loans of
        similar maturity, plus \1/8\ of 1 percent.''.
        (b) Elimination of Federal Financing Bank Guaranteed Loans.--
    Section 306 of the Rural Electrification Act of 1936 (7 U.S.C. 936) is
    amended--
            (1) in the third sentence, by striking ``guarantee,
        accommodation, or subordination'' and inserting ``accommodation or
        subordination''; and
            (2) by striking the fourth sentence.
    SEC. 6103. DEFERMENT OF PAYMENTS TO ALLOWS LOANS FOR IMPROVED ENERGY
    EFFICIENCY AND DEMAND REDUCTION AND FOR ENERGY EFFICIENCY AND USE
    AUDITS.
        Section 12 of the Rural Electrification Act of 1936 (7 U.S.C. 912)
    is amended by adding at the end the following:
        ``(c) Deferment of Payments on Loans.--
            ``(1) In general.--The Secretary shall allow borrowers to defer
        payment of principal and interest on any direct loan made under
        this Act to enable the borrower to make loans to residential,
        commercial, and industrial consumers--
                ``(A) to conduct energy efficiency and use audits; and
                ``(B) to install energy efficient measures or devices that
            reduce the demand on electric systems.
            ``(2) Amount.--The total amount of a deferment under this
        subsection shall not exceed the sum of the principal and interest
        on the loans made to a customer of the borrower, as determined by
        the Secretary.
            ``(3) Term.--The term of a deferment under this subsection
        shall not exceed 60 months.''.
    SEC. 6104. RURAL ELECTRIFICATION ASSISTANCE.
        Section 13 of the Rural Electrification Act of 1936 (7 U.S.C. 913)
    is amended to read as follows:
      ``SEC. 13. DEFINITIONS.
        ``In this Act:
            ``(1) Farm.--The term `farm' means a farm, as defined by the
        Bureau of the Census.
            ``(2) Indian tribe.--The term `Indian tribe' has the meaning
        given the term in section 4 of the Indian Self-Determination and
        Education Assistance Act (25 U.S.C. 450b).
            ``(3) Rural area.--Except as provided otherwise in this Act,
        the term `rural area' means the farm and nonfarm population of--
                ``(A) any area described in section 343(a)(13)(C) of the
            Consolidated Farm and Rural Development Act (7 U.S.C.
            1991(a)(13)(C)); and
                ``(B) any area within a service area of a borrower for
            which a borrower has an outstanding loan made under titles I
            through V as of the date of enactment of this paragraph.
            ``(4) Territory.--The term `territory' includes any insular
        possession of the United States.
            ``(5) Secretary.--The term `Secretary' means the Secretary of
        Agriculture.''.
    SEC. 6105. SUBSTANTIALLY UNDERSERVED TRUST AREAS.
        The Rural Electrification Act of 1936 is amended by inserting after
    section 306E (7 U.S.C. 936e) the following:
    ``SEC. 306F. SUBSTANTIALLY UNDERSERVED TRUST AREAS.
        ``(a) Definitions.--In this section:
            ``(1) Eligible program.--The term `eligible program' means a
        program administered by the Rural Utilities Service and authorized
        in--
                ``(A) this Act; or
                ``(B) paragraph (1), (2), (14), (22), or (24) of section
            306(a) or section 306A, 306C, 306D, or 306E of the Consolidated
            Farm and Rural Development Act (7 U.S.C. 1926(a), 1926a, 1926c,
            1926d, 1926e).
            ``(2) Substantially underserved trust area.--The term
        `substantially underserved trust area' means a community in `trust
        land' (as defined in section 3765 of title 38, United States Code)
        with respect to which the Secretary determines has a high need for
        the benefits of an eligible program.
        ``(b) Initiative.--The Secretary, in consultation with local
    governments and Federal agencies, may implement an initiative to
    identify and improve the availability of eligible programs in
    communities in substantially underserved trust areas.
        ``(c) Authority of Secretary.--In carrying out subsection (b), the
    Secretary--
            ``(1) may make available from loan or loan guarantee programs
        administered by the Rural Utilities Service to qualified utilities
        or applicants financing with an interest rate as low as 2 percent,
        and with extended repayment terms;
            ``(2) may waive nonduplication restrictions, matching fund
        requirements, or credit support requirements from any loan or grant
        program administered by the Rural Utilities Service to facilitate
        the construction, acquisition, or improvement of infrastructure;
            ``(3) may give the highest funding priority to designated
        projects in substantially underserved trust areas; and
            ``(4) shall only make loans or loan guarantees that are found
        to be financially feasible and that provide eligible program
        benefits to substantially underserved trust areas.
        ``(d) Report.--Not later than 1 year after the date of enactment of
    this section and annually thereafter, the Secretary shall submit to
    Congress a report that describes--
            ``(1) the progress of the initiative implemented under
        subsection (b); and
            ``(2) recommendations for any regulatory or legislative changes
        that would be appropriate to improve services to substantially
        underserved trust areas.''.
    SEC. 6106. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR
    TELEPHONE PURPOSES.
        (a) In General.--Section 313A of the Rural Electrification Act of
    1936 (7 U.S.C. 940c-1) is amended--
            (1) in subsection (b)--
                (A) in paragraph (1), by striking ``for electrification''
            and all that follows through the end and inserting ``for
            eligible electrification or telephone purposes consistent with
            this Act.''; and
                (B) by striking paragraph (4) and inserting the following:
            ``(4) Annual amount.--The total amount of guarantees provided
        by the Secretary under this section during a fiscal year shall not
        exceed $1,000,000,000, subject to the availability of funds under
        subsection (e).'';
            (2) in subsection (c), by striking paragraphs (2) and (3) and
        inserting the following:
            ``(2) Amount.--
                ``(A) In general.--The amount of the annual fee paid for
            the guarantee of a bond or note under this section shall be
            equal to 30 basis points of the amount of the unpaid principal
            of the bond or note guaranteed under this section.
                ``(B) Prohibition.--Except as otherwise provided in this
            subsection and subsection (e)(2), no other fees shall be
            assessed.
            ``(3) Payment.--
                ``(A) In general.--A lender shall pay the fees required
            under this subsection on a semiannual basis.
                ``(B) Structured schedule.--The Secretary shall, with the
            consent of the lender, structure the schedule for payment of
            the fee to ensure that sufficient funds are available to pay
            the subsidy costs for note or bond guarantees as provided for
            in subsection (e)(2).''; and
            (3) in subsection (f), by striking ``2007'' and inserting
        ``2012''.
        (b) Administration.--The Secretary shall continue to carry out
    section 313A of the Rural Electrification Act of 1936 (7 U.S.C. 940c-1)
    in the same manner as on the day before the date of enactment of this
    Act, except without regard to the limitations prescribed in subsection
    (b)(1) of that section, until such time as any regulations necessary to
    carry out the amendments made by this section are fully implemented.
    SEC. 6107. EXPANSION OF 911 ACCESS.
        Section 315 of the Rural Electrification Act of 1936 (7 U.S.C.
    940e) is amended to read as follows:
        ``SEC. 315. EXPANSION OF 911 ACCESS.
        ``(a) In General.--Subject to subsection (c) and such terms and
    conditions as the Secretary may prescribe, the Secretary may make loans
    under this title to entities eligible to borrow from the Rural
    Utilities Service, State or local governments, Indian tribes (as
    defined in section 4 of the Indian Self-Determination and Education
    Assistance Act (25 U.S.C. 450b)), or other public entities for
    facilities and equipment to expand or improve in rural areas--
            ``(1) 911 access;
            ``(2) integrated interoperable emergency communications,
        including multiuse networks that provide commercial or
        transportation information services in addition to emergency
        communications services;
            ``(3) homeland security communications;
            ``(4) transportation safety communications; or
            ``(5) location technologies used outside an urbanized area.
        ``(b) Loan Security.--Government-imposed fees related to emergency
    communications (including State or local 911 fees) may be considered to
    be security for a loan under this section.
        ``(c) Emergency Communications Equipment Providers.--The Secretary
    may make a loan under this section to an emergency communication
    equipment provider to expand or improve 911 access or other
    communications or technologies described in subsection (a) if the local
    government that has jurisdiction over the project is not allowed to
    acquire the debt resulting from the loan.
        ``(d) Authorization of Appropriations.--The Secretary shall use to
    make loans under this section any funds otherwise made available for
    telephone loans for each of fiscal years 2008 through 2012.''.
    SEC. 6108. ELECTRIC LOANS FOR RENEWABLE ENERGY.
        Title III of the Rural Electrification Act of 1936 is amended by
    inserting after section 316 (7 U.S.C. 940f) the following:
        ``SEC. 317. ELECTRIC LOANS FOR RENEWABLE ENERGY.
        ``(a) Definition of Renewable Energy Source.--In this section, the
    term `renewable energy source' means an energy conversion system fueled
    from a solar, wind, hydropower, biomass, or geothermal source of
    energy.
        ``(b) Loans.--In addition to any other funds or authorities
    otherwise made available under this Act, the Secretary may make
    electric loans under this title for electric generation from renewable
    energy resources for resale to rural and nonrural residents.
        ``(c) Rate.--The rate of a loan under this section shall be equal
    to the average tax-exempt municipal bond rate of similar maturities.''.
    SEC. 6109. BONDING REQUIREMENTS.
        Title III of the Rural Electrification Act of 1936 is amended by
    inserting after section 317 (as added by section 6108) the following:
        ``SEC. 318. 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.''.
    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) Definitions.--In this section:
            ``(1) Broadband service.--The term `broadband service' means
        any technology identified by the Secretary as having the capacity
        to transmit data to enable a subscriber to the service to originate
        and receive high-quality voice, data, graphics, and video.
            ``(2) Incumbent service provider.--The term `incumbent service
        provider', with respect to an application submitted under this
        section, means an entity that, as of the date of submission of the
        application, is providing broadband service to not less than 5
        percent of the households in the service territory proposed in the
        application.
            ``(3) Rural area.--
                ``(A) In general.--The term `rural area' means any area
            other than--
                    ``(i) an area described in clause (i) or (ii) of
                section 343(a)(13)(A) of the Consolidated Farm and Rural
                Development Act (7 U.S.C. 1991(a)(13)(A)); and
                    ``(ii) a city, town, or incorporated area that has a
                population of greater than 20,000 inhabitants.
                ``(B) Urban area growth.--The Secretary may, by regulation
            only, consider an area described in section 343(a)(13)(F)(i)(I)
            of that Act to not be a rural area for purposes of this
            section.
        ``(c) Loans and Loan Guarantees.--
            ``(1) In general.--The Secretary shall make or guarantee loans
        to eligible entities described in subsection (d) to provide funds
        for the construction, improvement, or acquisition of facilities and
        equipment for the provision of broadband service in rural areas.
            ``(2) Priority.--In making or guaranteeing loans under
        paragraph (1), the Secretary shall give the highest priority to
        applicants that offer to provide broadband service to the greatest
        proportion of households that, prior to the provision of the
        broadband service, had no incumbent service provider.
        ``(d) Eligibility.--
            ``(1) Eligible entities.--
                ``(A) In general.--To be eligible to obtain a loan or loan
            guarantee under this section, an entity shall--
                    ``(i) demonstrate the ability to furnish, improve, or
                extend a broadband service to a rural area;
                    ``(ii) submit to the Secretary a loan application at
                such time, in such manner, and containing such information
                as the Secretary may require; and
                    ``(iii) agree to complete buildout of the broadband
                service described in the loan application by not later than
                3 years after the initial date on which proceeds from the
                loan made or guaranteed under this section are made
                available.
                ``(B) Limitation.--An eligible entity that provides
            telecommunications or broadband service to at least 20 percent
            of the households in the United States may not receive an
            amount of funds under this section for a fiscal year in excess
            of 15 percent of the funds authorized and appropriated under
            subsection (k) for the fiscal year.
            ``(2) Eligible projects.--
                ``(A) In general.--Except as provided in subparagraphs (B)
            and (C), the proceeds of a loan made or guaranteed under this
            section may be used to carry out a project in a proposed
            service territory only if, as of the date on which the
            application for the loan or loan guarantee is submitted--
                    ``(i) not less than 25 percent of the households in the
                proposed service territory is offered broadband service by
                not more than 1 incumbent service provider; and
                    ``(ii) broadband service is not provided in any part of
                the proposed service territory by 3 or more incumbent
                service providers.
                ``(B) Exception to 25 percent requirement.--Subparagraph
            (A)(i) shall not apply to the proposed service territory of a
            project if a loan or loan guarantee has been made under this
            section to the applicant to provide broadband service in the
            proposed service territory.
                ``(C) Exception to 3 or more incumbent service provider
            requirement.--
                    ``(i) In general.--Except as provided in clause (ii),
                subparagraph (A)(ii) shall not apply to an incumbent
                service provider that is upgrading broadband service to the
                existing territory of the incumbent service provider.
                    ``(ii) Exception.--Clause (i) shall not apply if the
                applicant is eligible for funding under another title of
                this Act.
            ``(3) Equity and market survey requirements.--
                ``(A) In general.--The Secretary may require an entity to
            provide a cost share in an amount not to exceed 10 percent of
            the amount of the loan or loan guarantee requested in the
            application of the entity, unless the Secretary determines that
            a higher percentage is required for financial feasibility.
                ``(B) Market survey.--
                    ``(i) In general.--The Secretary may require an entity
                that proposes to have a subscriber projection of more than
                20 percent of the broadband service market in a rural area
                to submit to the Secretary a market survey.
                    ``(ii) Less than 20 percent.--The Secretary may not
                require an entity that proposes to have a subscriber
                projection of less than 20 percent of the broadband service
                market in a rural area to submit to the Secretary a market
                survey.
            ``(4) State and local governments and indian tribes.--Subject
        to paragraph (1), a State or local government (including any
        agency, subdivision, or instrumentality thereof (including
        consortia thereof)) and an Indian tribe shall be eligible for a
        loan or loan guarantee under this section to provide broadband
        services to a rural area.
            ``(5) Notice requirement.--The Secretary shall publish a notice
        of each application for a loan or loan guarantee under this section
        describing the application, including--
                ``(A) the identity of the applicant;
                ``(B) each area proposed to be served by the applicant; and
                ``(C) the estimated number of households without
            terrestrial-based broadband service in those areas.
            ``(6) Paperwork reduction.--The Secretary shall take steps to
        reduce, to the maximum extent practicable, the cost and paperwork
        associated with applying for a loan or loan guarantee under this
        section by first-time applicants (particularly first-time
        applicants who are small and start-up broadband service providers),
        including by providing for a new application that maintains the
        ability of the Secretary to make an analysis of the risk associated
        with the loan involved.
            ``(7) Preapplication process.--The Secretary shall establish a
        process under which a prospective applicant may seek a
        determination of area eligibility prior to preparing a loan
        application under this section.
        ``(e) Broadband Service.--
            ``(1) In general.--The Secretary shall, from time to time as
        advances in technology warrant, review and recommend modifications
        of rate-of-data transmission criteria for purposes of the
        identification of broadband service technologies under subsection
        (b)(1).
            ``(2) Prohibition.--The Secretary shall not establish
        requirements for bandwidth or speed that have the effect of
        precluding the use of evolving technologies appropriate for rural
        areas.
        ``(f) Technological Neutrality.--For purposes of determining
    whether to make a loan or loan guarantee for a project under this
    section, the Secretary shall use criteria that are technologically
    neutral.
        ``(g) Terms and Conditions for Loans and Loan Guarantees.--
            ``(1) In general.--Notwithstanding any other provision of law,
        a loan or loan guarantee under this section shall--
                ``(A) bear interest at an annual rate of, as determined by
            the Secretary--
                    ``(i) in the case of a direct loan, a rate equivalent
                to--

                        ``(I) the cost of borrowing to the Department of
                    the Treasury for obligations of comparable maturity; or
                        ``(II) 4 percent; and

                    ``(ii) in the case of a guaranteed loan, the current
                applicable market rate for a loan of comparable maturity;
                and
                ``(B) have a term of such length, not exceeding 35 years,
            as the borrower may request, if the Secretary determines that
            the loan is adequately secured.
            ``(2) Term.--In determining the term of a loan or loan
        guarantee, the Secretary shall consider whether the recipient is or
        would be serving an area that is not receiving broadband services.
            ``(3) Recurring revenue.--The Secretary shall consider the
        existing recurring revenues of the entity at the time of
        application in determining an adequate level of credit support.
        ``(h) Adequacy of Security.--
            ``(1) In general.--The Secretary shall ensure that the type and
        amount of, and method of security used to secure, any loan or loan
        guarantee under this section is commensurate to the risk involved
        with the loan or loan guarantee, particularly in any case in which
        the loan or loan guarantee is issued to a financially strong and
        stable entity, as determined by the Secretary.
            ``(2) Determination of amount and method of security.--In
        determining the amount of, and method of security used to secure, a
        loan or loan guarantee under this section, the Secretary shall
        consider reducing the security in a rural area that does not have
        broadband service.
        ``(i) Use of Loan Proceeds to Refinance Loans for Deployment of
    Broadband Service.--Notwithstanding any other provision of this Act,
    the proceeds of any loan made or guaranteed by the Secretary under this
    Act may be used by the recipient of the loan for the purpose of
    refinancing an outstanding obligation of the recipient on another
    telecommunications loan made under this Act if the use of the proceeds
    for that purpose will support the construction, improvement, or
    acquisition of facilities and equipment for the provision of broadband
    service in rural areas.
        ``(j) Reports.--Not later than 1 year after the date of enactment
    of the Food, Conservation, and Energy Act of 2008, and annually
    thereafter, the Administrator shall submit to Congress a report that
    describes the extent of participation in the loan and loan guarantee
    program under this section for the preceding fiscal year, including a
    description of --
            ``(1) the number of loans applied for and provided under this
        section;
            ``(2)(A) the communities proposed to be served in each loan
        application submitted for the fiscal year; and
            ``(B) the communities served by projects funded by loans and
        loan guarantees provided under this section;
            ``(3) the period of time required to approve each loan
        application under this section;
            ``(4) any outreach activities carried out by the Secretary to
        encourage entities in rural areas without broadband service to
        submit applications under this section;
            ``(5) the method by which the Secretary determines that a
        service enables a subscriber to originate and receive high-quality
        voice, data, graphics, and video for purposes of subsection (b)(1);
        and
            ``(6) each broadband service, including the type and speed of
        broadband service, for which assistance was sought, and each
        broadband service for which assistance was provided, under this
        section.
        ``(k) Funding.--
            ``(1) Authorization of appropriations.--There is authorized to
        be appropriated to the Secretary to carry out this section
        $25,000,000 for each of fiscal years 2008 through 2012, to remain
        available until expended.
            ``(2) Allocation of funds.--
                ``(A) In general.--From amounts made available for each
            fiscal year under this subsection, the Secretary shall--
                    ``(i) establish a national reserve for loans and loan
                guarantees to eligible entities in States under this
                section; and
                    ``(ii) allocate amounts in the reserve to each State
                for each fiscal year for loans and loan guarantees to
                eligible entities in the State.
                ``(B) Amount.--The amount of an allocation made to a State
            for a fiscal year under subparagraph (A) shall bear the same
            ratio to the amount of allocations made for all States for the
            fiscal year as--
                    ``(i) the number of communities with a population of
                2,500 inhabitants or less in the State; bears to
                    ``(ii) the number of communities with a population of
                2,500 inhabitants or less in all States.
                ``(C) Unobligated amounts.--Any amounts in the reserve
            established for a State for a fiscal year under subparagraph
            (B) that are not obligated by April 1 of the fiscal year shall
            be available to the Secretary to make loans and loan guarantees
            under this section to eligible entities in any State, as
            determined by the Secretary.
        ``(l) Termination of Authority.--No loan or loan guarantee may be
    made under this section after September 30, 2012.''.
        (b) Regulations.--The Secretary may implement the amendment made by
    subsection (a) through the promulgation of an interim regulation.
        (c) Application.--The amendment made by subsection (a) shall not
    apply to--
            (1) an application submitted under section 601 of the Rural
        Electrification Act of 1936 (7 U.S.C. 950bb) (as it existed before
        the amendment made by subsection (a)) that--
                (A) was pending on the date that is 45 days prior to the
            date of enactment of this Act; and
                (B) is pending on the date of enactment of this Act; or
            (2) a petition for reconsideration of a decision on an
        application described in paragraph (1).
    SEC. 6111. NATIONAL CENTER FOR RURAL TELECOMMUNICATIONS ASSESSMENT.
        Title VI of the Rural Electrification Act of 1936 (7 U.S.C. 950bb
    et seq.) is amended by adding at the end the following:
        ``SEC. 602. NATIONAL CENTER FOR RURAL TELECOMMUNICATIONS
          ASSESSMENT.
        ``(a) Designation of Center.--The Secretary shall designate an
    entity to serve as the National Center for Rural Telecommunications
    Assessment (referred to in this section as the `Center').
        ``(b) Criteria.--In designating the Center under subsection (a),
    the Secretary shall take into consideration the following criteria:
            ``(1) The Center shall be an entity that demonstrates to the
        Secretary--
                ``(A) a focus on rural policy research; and
                ``(B) a minimum of 5 years of experience relating to rural
            telecommunications research and assessment.
            ``(2) The Center shall be capable of assessing broadband
        services in rural areas.
            ``(3) The Center shall have significant experience involving
        other rural economic development centers and organizations with
        respect to the assessment of rural policies and the formulation of
        policy solutions at the Federal, State, and local levels.
        ``(c) Board of Directors.--The Center shall be managed by a board
    of directors, which shall be responsible for the duties of the Center
    described in subsection (d).
        ``(d) Duties.--The Center shall--
            ``(1) assess the effectiveness of programs carried out under
        this title in increasing broadband penetration and purchase in
        rural areas, especially in rural communities identified by the
        Secretary as having no broadband service before the provision of a
        loan or loan guarantee under this title;
            ``(2) work with existing rural development centers selected by
        the Center to identify policies and initiatives at the Federal,
        State, and local levels that have increased broadband penetration
        and purchase in rural areas and provide recommendations to Federal,
        State, and local policymakers on effective strategies to bring
        affordable broadband services to residents of rural areas,
        particularly residents located outside of the municipal boundaries
        of a rural city or town; and
            ``(3) develop and publish reports describing the activities
        carried out by the Center under this section.
        ``(e) Reporting Requirements.--Not later than December 1 of each
    applicable fiscal year, the board of directors of the Center shall
    submit to Congress and the Secretary a report describing the activities
    carried out by the Center during the preceding fiscal year and the
    results of any research conducted by the Center during that fiscal
    year, including--
            ``(1) an assessment of each program carried out under this
        title; and
            ``(2) an assessment of the effects of the policy initiatives
        identified under subsection (d)(2).
        ``(f) Authorization of Appropriations.--There is authorized to be
    appropriated to the Secretary to carry out this section $1,000,000 for
    each of fiscal years 2008 through 2012.''.
    SEC. 6112. COMPREHENSIVE RURAL BROADBAND STRATEGY.
        (a) In General.--Not later than 1 year after the date of enactment
    of this Act, the Chairman of the Federal Communications Commission, in
    coordination with the Secretary, shall submit to Congress a report
    describing a comprehensive rural broadband strategy that includes--
            (1) recommendations--
                (A) to promote interagency coordination of Federal agencies
            in regards to policies, procedures, and targeted resources, and
            to streamline or otherwise improve and streamline the policies,
            programs, and services;
                (B) to coordinate existing Federal rural broadband or rural
            initiatives;
                (C) to address both short- and long-term needs assessments
            and solutions for a rapid build-out of rural broadband
            solutions and application of the recommendations for Federal,
            State, regional, and local government policymakers; and
                (D) to identify how specific Federal agency programs and
            resources can best respond to rural broadband requirements and
            overcome obstacles that currently impede rural broadband
            deployment; and
            (2) a description of goals and timeframes to achieve the
        purposes of the report.
        (b) Updates.--The Chairman of the Federal Communications
    Commission, in coordination with the Secretary, shall update and
    evaluate the report described in subsection (a) during the third year
    after the date of enactment of this Act.
    SEC. 6113. STUDY ON RURAL ELECTRIC POWER GENERATION.
        (a) In General.--The Secretary shall conduct a study on the
    electric power generation needs in rural areas of the United States.
        (b) Components.--The study shall include an examination of--
            (1) generation in various areas in rural areas of the United
        States, particularly by rural electric cooperatives;;
            (2) financing available for capacity, including financing
        available through programs authorized under the Rural
        Electrification Act of 1936 (7 U.S.C. 901 et seq.);
            (3) the impact of electricity costs on consumers and local
        economic development;
            (4) the ability of fuel feedstock technology to meet regulatory
        requirements, such as carbon capture and sequestration; and
            (5) any other factors that the Secretary considers appropriate.
        (c) Report.--Not later than 60 days after the date of enactment of
    this Act, the Secretary shall submit to the Committee on Agriculture of
    the House of Representatives and the Committee on Agriculture,
    Nutrition, and Forestry of the Senate a report containing the findings
    of the study under this section.

                           Subtitle C--Miscellaneous

    SEC. 6201. DISTANCE LEARNING AND TELEMEDICINE.
        (a) In General.--Section 2333(c)(1) of the Food, Agriculture,
    Conservation and Trade Act of 1990 (7 U.S.C. Sec. 950aaa-2(a)(1)) is
    amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B), by striking the period at the end and
        inserting a semicolon; and
            (3) by adding at the end the following:
                ``(C) libraries.''.
        (b) Authorization of Appropriations.--Section 2335A of the Food,
    Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-5) is
    amended by striking ``2007'' and inserting ``2012''.
        (c) Conforming Amendment.--Section 1(b) of Public Law 102-551 (7
    U.S.C. 950aaa note; Public Law 102-551) is amended by striking ``2007''
    and inserting ``2012''.
    SEC. 6202. VALUE-ADDED AGRICULTURAL MARKET DEVELOPMENT PROGRAM GRANTS.
        (a) Definitions.--Section 231 of the Agricultural Risk Protection
    Act of 2000 (7 U.S.C. 1621 note; Public Law 106-224) is amended by
    striking subsection (a) and inserting the following:
        ``(a) Definitions.--In this section:
            ``(1) Beginning farmer or rancher.--The term `beginning farmer
        or rancher' has the meaning given the term in section 343(a) of the
        Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)).
            ``(2) Family farm.--The term `family farm' has the meaning
        given the term in section 761.2 of title 7, Code of Federal
        Regulations (as in effect on December 30, 2007).
            ``(3) Mid-tier value chain.--The term `mid-tier value chain'
        means local and regional supply networks that link independent
        producers with businesses and cooperatives that market value-added
        agricultural products in a manner that--
                ``(A) targets and strengthens the profitability and
            competitiveness of small and medium-sized farms and ranches
            that are structured as a family farm; and
                ``(B) obtains agreement from an eligible agricultural
            producer group, farmer or rancher cooperative, or majority-
            controlled producer-based business venture that is engaged in
            the value chain on a marketing strategy.
            ``(4) Socially disadvantaged farmer or rancher.--The term
        `socially disadvantaged farmer or rancher' has the meaning given
        the term in section 355(e) of the Consolidated Farm and Rural
        Development Act (7 U.S.C. 2003(e)).
            ``(5) Value-added agricultural product.--The term `value-added
        agricultural product' means any agricultural commodity or product
        that--
                ``(A)(i) has undergone a change in physical state;
                ``(ii) was produced in a manner that enhances the value of
            the agricultural commodity or product, as demonstrated through
            a business plan that shows the enhanced value, as determined by
            the Secretary;
                ``(iii) is physically segregated in a manner that results
            in the enhancement of the value of the agricultural commodity
            or product;
                ``(iv) is a source of farm- or ranch-based renewable
            energy, including E-85 fuel; or
                ``(v) is aggregated and marketed as a locally-produced
            agricultural food product; and
            ``(B) as a result of the change in physical state or the manner
        in which the agricultural commodity or product was produced,
        marketed, or segregated--
                ``(i) the customer base for the agricultural commodity or
            product is expanded; and
                ``(ii) a greater portion of the revenue derived from the
            marketing, processing, or physical segregation of the
            agricultural commodity or product is available to the producer
            of the commodity or product.''.
        (b) Grant Program.--Section 231(b) of the Agricultural Risk
    Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-224) is
    amended--
            (1) in paragraph (1), by striking ``paragraph (4)'' and
        inserting ``paragraph (7)''; and
            (2) by striking paragraph (4) and inserting the following:
            ``(4) Term.--A grant under this subsection shall have a term
        that does not exceed 3 years.
            ``(5) Simplified application.--The Secretary shall offer a
        simplified application form and process for project proposals
        requesting less than $50,000.
            ``(6) Priority.--In awarding grants under this subsection, the
        Secretary shall give priority to projects that contribute to
        increasing opportunities for--
                ``(A) beginning farmers or ranchers;
                ``(B) socially disadvantaged farmers or ranchers; and
                ``(C) operators of small- and medium-sized farms and
            ranches that are structured as a family farm.
            ``(7) Funding.--
                ``(A) Mandatory funding.--On October 1, 2008, of the funds
            of the Commodity Credit Corporation, the Secretary shall make
            available to carry out this subsection $15,000,000, to remain
            available until expended.
                ``(B) Discretionary funding.--There is authorized to be
            appropriated to carry out this subsection $40,000,000 for each
            of fiscal years 2008 through 2012.
                ``(C) Reservation of funds for projects to benefit
            beginning farmers or ranchers, socially disadvantaged farmers
            or ranchers, and mid-tier value chains.--
                    ``(i) In general.--The Secretary shall reserve 10
                percent of the amounts made available for each fiscal year
                under this paragraph to fund projects that benefit
                beginning farmers or ranchers or socially disadvantaged
                farmers or ranchers.
                    ``(ii) Mid-tier value chains.--The Secretary shall
                reserve 10 percent of the amounts made available for each
                fiscal year under this paragraph to fund applications of
                eligible entities described in paragraph (1) that propose
                to develop mid-tier value chains.
                    ``(iii) Unobligated amounts.--Any amounts in the
                reserves for a fiscal year established under clauses (i)
                and (ii) that are not obligated by June 30 of the fiscal
                year shall be available to the Secretary to make grants
                under this subsection to eligible entities in any State, as
                determined by the Secretary.''.
    SEC. 6203. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM.
        Section 6402 of the Farm Security and Rural Investment Act of 2002
    (7 U.S.C. 1621 note; Public Law 107-171) is amended by striking
    subsection (i) and inserting the following:
        ``(i) Authorization of Appropriations.--There is authorized to be
    appropriated to the Secretary to carry out this section $6,000,000 for
    each of fiscal years 2008 through 2012.''.
    SEC. 6204. RURAL FIREFIGHTERS AND EMERGENCY MEDICAL SERVICE ASSISTANCE
    PROGRAM.
        Section 6405 of the Farm Security and Rural Investment Act of 2002
    (7 U.S.C. 2655) is amended to read as follows:
    ``SEC. 6405. RURAL FIREFIGHTERS AND EMERGENCY MEDICAL SERVICE
    ASSISTANCE PROGRAM.
        ``(a) Definition of Emergency Medical Services.--In this section:
            ``(1) In general.--The term `emergency medical services' means
        resources used by a public or nonprofit entity to deliver medical
        care outside of a medical facility under emergency conditions that
        occur as a result of--
                ``(A) the condition of a patient; or
                ``(B) a natural disaster or related condition.
            ``(2) Inclusion.--The term `emergency medical services'
        includes services (whether compensated or volunteer) delivered by
        an emergency medical services provider or other provider recognized
        by the State involved that is licensed or certified by the State
        as--
                ``(A) an emergency medical technician or the equivalent (as
            determined by the State);
                ``(B) a registered nurse;
                ``(C) a physician assistant; or
                ``(D) a physician that provides services similar to
            services provided by such an emergency medical services
            provider.
        ``(b) Grants.--The Secretary shall award grants to eligible
    entities--
            ``(1) to enable the entities to provide for improved emergency
        medical services in rural areas; and
            ``(2) to pay the cost of training firefighters and emergency
        medical personnel in firefighting, emergency medical practices, and
        responding to hazardous materials and bioagents in rural areas.
        ``(c) Eligibility.--To be eligible to receive a grant under this
    section, an entity shall--
            ``(1) be--
                ``(A) a State emergency medical services office;
                ``(B) a State emergency medical services association;
                ``(C) a State office of rural health or an equivalent
            agency;
                ``(D) a local government entity;
                ``(E) an Indian tribe (as defined in section 4 of the
            Indian Self-Determination and Education Assistance Act (25
            U.S.C. 450b));
                ``(F) a State or local ambulance provider; or
                ``(G) any other public or nonprofit entity determined
            appropriate by the Secretary; and
            ``(2) prepare and submit to the Secretary an application at
        such time, in such manner, and containing such information as the
        Secretary may require, that includes--
                ``(A) a description of the activities to be carried out
            under the grant; and
                ``(B) an assurance that the applicant will comply with the
            matching requirement of subsection (f).
        ``(d) Use of Funds.--An entity shall use amounts received under a
    grant made under subsection (b) only in a rural area--
            ``(1) to hire or recruit emergency medical service personnel;
            ``(2) to recruit or retain volunteer emergency medical service
        personnel;
            ``(3) to train emergency medical service personnel in emergency
        response, injury prevention, safety awareness, or other topics
        relevant to the delivery of emergency medical services;
            ``(4) to fund training to meet State or Federal certification
        requirements;
            ``(5) to provide training for firefighters or emergency medical
        personnel for improvements to the training facility, equipment,
        curricula, or personnel;
            ``(6) to develop new ways to educate emergency health care
        providers through the use of technology-enhanced educational
        methods (such as distance learning);
            ``(7) to acquire emergency medical services vehicles, including
        ambulances;
            ``(8) to acquire emergency medical services equipment,
        including cardiac defibrillators;
            ``(9) to acquire personal protective equipment for emergency
        medical services personnel as required by the Occupational Safety
        and Health Administration; or
            ``(10) to educate the public concerning cardiopulmonary
        resuscitation (CPR), first aid, injury prevention, safety
        awareness, illness prevention, or other related emergency
        preparedness topics.
        ``(e) Preference.--In awarding grants under this section, the
    Secretary shall give preference to--
            ``(1) applications that reflect a collaborative effort by 2 or
        more of the entities described in subparagraphs (A) through (G) of
        subsection (c)(1); and
            ``(2) applications submitted by entities that intend to use
        amounts provided under the grant to fund activities described in
        any of paragraphs (1) through (5) of subsection (d).
        ``(f) Matching Requirement.--The Secretary may not make a grant
    under this section to an entity unless the entity makes available
    (directly or through contributions from other public or private
    entities) non-Federal contributions toward the activities to be carried
    out under the grant in an amount equal to at least 5 percent of the
    amount received under the grant.
        ``(g) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated to
        the Secretary to carry out this section not more than $30,000,000
        for each of fiscal years 2008 through 2012.
            ``(2) Administrative costs.--Not more than 5 percent of the
        amount appropriated under paragraph (1) for a fiscal year may be
        used for administrative expenses incurred in carrying out this
        section.''.
    SEC. 6205. INSURANCE OF LOANS FOR HOUSING AND RELATED FACILITIES FOR
    DOMESTIC FARM LABOR.
        Section 514(f)(3) of the Housing Act of 1949 (42 U.S.C. 1484(f)(3))
    is amended by striking ``or the handling of such commodities in the
    unprocessed stage'' and inserting ``, the handling of agricultural or
    aquacultural commodities in the unprocessed stage, or the processing of
    agricultural or aquacultural commodities''.
    SEC. 6206. STUDY OF RURAL TRANSPORTATION ISSUES.
        (a) In General.--The Secretary of Agriculture and the Secretary of
    Transportation shall jointly conduct a study of transportation issues
    regarding the movement of agricultural products, domestically produced
    renewable fuels, and domestically produced resources for the production
    of electricity for rural areas of the United States, and economic
    development in those areas.
        (b) Inclusions.--The study shall include an examination of--
            (1) the importance of freight transportation, including rail,
        truck, and barge, to--
                (A) the delivery of equipment, seed, fertilizer, and other
            such products important to the development of agricultural
            commodities and products;
                (B) the movement of agricultural commodities and products
            to market;
                (C) the delivery of ethanol and other renewable fuels;
                (D) the delivery of domestically produced resources for use
            in the generation of electricity for rural areas;
                (E) the location of grain elevators, ethanol plants, and
            other facilities;
                (F) the development of manufacturing facilities in rural
            areas; and
                (G) the vitality and economic development of rural
            communities;
            (2) the sufficiency in rural areas of transportation capacity,
        the sufficiency of competition in the transportation system, the
        reliability of transportation services, and the reasonableness of
        transportation rates;
            (3) the sufficiency of facility investment in rural areas
        necessary for efficient and cost-effective transportation; and
            (4) the accessibility to shippers in rural areas of Federal
        processes for the resolution of grievances arising within various
        transportation modes.
        (c) Report to Congress.--Not later than 1 year after the date of
    enactment of this Act, the Secretary and the Secretary of
    Transportation shall submit to Congress a report that contains the
    results of the study required by subsection (a).

                     Subtitle D--Housing Assistance Council

    SEC. 6301. SHORT TITLE.
        This subtitle may be cited as the ``Housing Assistance Council
    Authorization Act of 2008''.
    SEC. 6302. ASSISTANCE TO HOUSING ASSISTANCE COUNCIL.
        (a) Use.--The Secretary of Housing and Urban Development may
    provide financial assistance to the Housing Assistance Council for use
    by the Council to develop the ability and capacity of community-based
    housing development organizations to undertake community development
    and affordable housing projects and programs in rural areas. Assistance
    provided by the Secretary under this section may be used by the Housing
    Assistance Council for--
            (1) technical assistance, training, support, research, and
        advice to develop the business and administrative capabilities of
        rural community-based housing development organizations;
            (2) loans, grants, or other financial assistance to rural
        community-based housing development organizations to carry out
        community development and affordable housing activities for low-
        and moderate-income families; and
            (3) such other activities as may be determined by the Secretary
        of Housing and Urban Development and the Housing Assistance
        Council.
        (b) Authorization of Appropriations.--There is authorized to be
    appropriated for financial assistance under this section for the
    Housing Assistance Council $10,000,000 for each of fiscal years 2009
    through 2011.
    SEC. 6303. AUDITS AND REPORTS.
        (a) Audit.--
            (1) In general.--The financial transactions and activities of
        the Housing Assistance Council shall be audited annually by an
        independent certified public accountant or an independent licensed
        public accountant certified or licensed by a regulatory authority
        of a State or other political subdivision of the United States.
            (2) Requirements of audits.--The Comptroller General of the
        United States may rely on any audit completed under paragraph (1),
        if the audit complies with--
                (A) the annual programmatic and financial examination
            requirements established in OMB Circular A-133; and
                (B) generally accepted government auditing standards.
            (3) Report to congress.--The Comptroller General shall submit
        to the Committee on Banking, Housing, and Urban Affairs of the
        Senate and the Committee on Financial Services of the House of
        Representative a report detailing each audit completed under
        paragraph (1).
        (b) GAO Report.--The Comptroller General of the United States shall
    conduct a study and submit a report to the Committee on Banking,
    Housing, and Urban Affairs of the Senate and the Committee on Financial
    Services of the House of Representative on the use of any funds
    appropriated to the Housing Assistance Council over the past 7 years.
    SEC. 6304. PERSONS NOT LAWFULLY PRESENT IN THE UNITED STATES.
        Aliens who are not lawfully present in the United States shall be
    ineligible for financial assistance under this subtitle, as provided
    and defined by section 214 of the Housing and Community Development Act
    of 1980 (42 U.S.C. 1436a). Nothing in this subtitle shall be construed
    to alter the restrictions or definitions in such section 214.
    SEC. 6305. LIMITATION ON USE OF AUTHORIZED AMOUNTS.
        None of the amounts authorized by this subtitle may be used to
    lobby or retain a lobbyist for the purpose of influencing a Federal,
    State, or local governmental entity or officer.

                    TITLE VII--RESEARCH AND RELATED MATTERS
      Subtitle A--National Agricultural Research, Extension, and Teaching
                               Policy Act of 1977

    SEC. 7101. DEFINITIONS.
        (a) In General.--Section 1404 of the National Agricultural
    Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103) is
    amended--
            (1) in paragraph (4)--
                (A) by redesignating subparagraphs (A) through (E) as
            clauses (i) through (v), respectively;
                (B) by striking ``(4) The terms'' and inserting the
            following:
            ``(4) College and university.--
                ``(A) In general.--The terms''; and
                (C) by adding at the end the following:
                ``(B) Inclusions.--The terms `college' and `university'
            include a research foundation maintained by a college or
            university described in subparagraph (A).'';
            (2) by redesignating paragraphs (5) through (8), (9) through
        (11), (12) through (14), (15), (16), (17), and (18) as paragraphs
        (6) through (9), (11) through (13), (15) through (17), (20), (5),
        (18), and (19), respectively, and moving the paragraphs so as to
        appear in alphabetical and numerical order;
            (3) in paragraph (9) (as redesignated by paragraph (2))--
                (A) by striking ``renewable natural resources'' and
            inserting ``renewable energy and natural resources''; and
                (B) by striking subparagraph (F) and inserting the
            following:
                ``(F) Soil, water, and related resource conservation and
            improvement.'';
            (4) by inserting after paragraph (9) (as so redesignated) the
        following:
            ``(10) Hispanic-serving agricultural colleges and
        universities.--
                ``(A) In general.--The term `Hispanic-serving agricultural
            colleges and universities' means colleges or universities
            that--
                    ``(i) qualify as Hispanic-serving institutions; and
                    ``(ii) offer associate, bachelors, or other accredited
                degree programs in agriculture-related fields.
                ``(B) Exception.--The term `Hispanic-serving agricultural
            colleges and universities' does not include 1862 institutions
            (as defined in section 2 of the Agricultural Research,
            Extension, and Education Reform Act of 1998 (7 U.S.C.
            7601)).'';
            (5) by striking paragraph (11) (as so redesignated) and
        inserting the following:
            ``(11) Hispanic-serving institution.--The term `Hispanic-
        serving institution' has the meaning given the term in section 502
        of the Higher Education Act of 1965 (20 U.S.C. 1101a).''; and
            (6) by inserting after paragraph (13) (as so redesignated) the
        following:
            ``(14) NLGCA institution; non-land-grant college of
        agriculture.--
                ``(A) In general.--The terms `NLGCA Institution' and `non-
            land-grant college of agriculture' mean a public college or
            university offering a baccalaureate or higher degree in the
            study of agriculture or forestry.
                ``(B) Exclusions.--The terms `NLGCA Institution' and `non-
            land-grant college of agriculture' do not include--
                    ``(i) Hispanic-serving agricultural colleges and
                universities; or
                    ``(ii) any institution designated under--

                        ``(I) the Act of July 2, 1862 (commonly known as
                    the `First Morrill Act'; 7 U.S.C. 301 et seq.);
                        ``(II) the Act of August 30, 1890 (commonly known
                    as the `Second Morrill Act') (7 U.S.C. 321 et seq.);
                        ``(III) the Equity in Educational Land-Grant Status
                    Act of 1994 (Public Law 103-382; 7 U.S.C. 301 note); or
                        ``(IV) Public Law 87-788 (commonly known as the
                    `McIntire-Stennis Cooperative Forestry Act') (16 U.S.C.
                    582a et seq.).''.

        (b) Conforming Amendments.--
            (1) Section 2(3) of the Research Facilities Act (7 U.S.C.
        390(3)) is amended by striking ``section 1404(8) of the National
        Agricultural Research, Extension, and Teaching Policy Act of 1977
        (7 U.S.C. 3103(8))'' and inserting ``section 1404 of the National
        Agricultural Research, Extension, and Teaching Policy Act of 1977
        (7 U.S.C. 3103)''.
            (2) Section 2(k) of the Competitive, Special, and Facilities
        Research Grant Act (7 U.S.C. 450i(k)) is amended in the second
        sentence by striking ``section 1404(17) of the National
        Agricultural Research, Extension, and Teaching Policy Act of 1977
        (7 U.S.C. 3103(17))'' and inserting ``section 1404 of the National
        Agricultural Research, Extension, and Teaching Policy Act of 1977
        (7 U.S.C. 3103)''.
            (3) Section 18(a)(3)(B) of the Food and Nutrition Act of 2008
        (7 U.S.C. 2027(a)(3)(B)) is amended by striking ``section 1404(5)
        of the National Agricultural Research, Extension, and Teaching
        Policy Act of 1977 (7 U.S.C. 3103(5)))'' and inserting ``section
        1404 of the National Agricultural Research, Extension, and Teaching
        Policy Act of 1977 (7 U.S.C. 3103))''.
            (4) Section 1473 of the National Agricultural Research,
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319) is
        amended in the first sentence by striking ``section 1404(16) of
        this title'' and inserting ``section 1404(18)''.
            (5) Section 1619(b) of the Food, Agriculture, Conservation, and
        Trade Act of 1990 (7 U.S.C. 5801(b)) is amended--
                (A) in paragraph (1), by striking ``section 1404(17) of the
            National Agricultural Research, Extension, and Teaching Policy
            Act of 1977 (7 U.S.C. 3103(17))'' and inserting ``section 1404
            of the National Agricultural Research, Extension, and Teaching
            Policy Act of 1977 (7 U.S.C. 3103)'';
                (B) in paragraph (5), by striking ``section 1404(7) of the
            National Agricultural Research, Extension, and Teaching Policy
            Act of 1977 (7 U.S.C. 3103(7))'' and inserting ``section 1404
            of the National Agricultural Research, Extension, and Teaching
            Policy Act of 1977 (7 U.S.C. 3103)''; and
                (C) in paragraph (8), by striking ``section 1404(13) of the
            National Agricultural Research, Extension, and Teaching Policy
            Act of 1977 (7 U.S.C. 3103(13))'' and inserting ``section 1404
            of the National Agricultural Research, Extension, and Teaching
            Policy Act of 1977 (7 U.S.C. 3103)''.
            (6) Section 125(c)(1)(C) of Public Law 100-238 (5 U.S.C. 8432
        note) is amended by striking ``section 1404(5) of the National
        Agricultural Research, Extension, and Teaching Policy Act of 1977
        (7 U.S.C. 3103(5))'' and inserting ``section 1404 of the National
        Agricultural Research, Extension, and Teaching Policy Act of 1977
        (7 U.S.C. 3103)''.
    SEC. 7102. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND
    ECONOMICS ADVISORY BOARD.
        (a) In General.--Section 1408 of the National Agricultural
    Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123) is
    amended--
            (1) in subsection (b)--
                (A) in paragraph (1), by striking ``31'' and inserting
            ``25''; and
                (B) by striking paragraph (3) and inserting the following:
            ``(3) Membership categories.--The Advisory Board shall consist
        of members from each of the following categories:
                ``(A) 1 member representing a national farm organization.
                ``(B) 1 member representing farm cooperatives.
                ``(C) 1 member actively engaged in the production of a food
            animal commodity, recommended by a coalition of national
            livestock organizations.
                ``(D) 1 member actively engaged in the production of a
            plant commodity, recommended by a coalition of national crop
            organizations.
                ``(E) 1 member actively engaged in aquaculture, recommended
            by a coalition of national aquacultural organizations.
                ``(F) 1 member representing a national food animal science
            society.
                ``(G) 1 member representing a national crop, soil,
            agronomy, horticulture, plant pathology, or weed science
            society.
                ``(H) 1 member representing a national food science
            organization.
                ``(I) 1 member representing a national human health
            association.
                ``(J) 1 member representing a national nutritional science
            society.
                ``(K) 1 member representing the land-grant colleges and
            universities eligible to receive funds under the Act of July 2,
            1862 (7 U.S.C. 301 et seq.).
                ``(L) 1 member representing the land-grant colleges and
            universities eligible to receive funds under the Act of August
            30, 1890 (7 U.S.C. 321 et seq.), including Tuskegee University.
                ``(M) 1 member representing the 1994 Institutions (as
            defined in section 532 of the Equity in Educational Land-Grant
            Status Act of 1994 (7 U.S.C. 301 note; Public Law 103-382)).
                ``(N) 1 member representing NLGCA Institutions.
                ``(O) 1 member representing Hispanic-serving institutions.
                ``(P) 1 member representing the American Colleges of
            Veterinary Medicine.
                ``(Q) 1 member engaged in the transportation of food and
            agricultural products to domestic and foreign markets.
                ``(R) 1 member representing food retailing and marketing
            interests.
                ``(S) 1 member representing food and fiber processors.
                ``(T) 1 member actively engaged in rural economic
            development.
                ``(U) 1 member representing a national consumer interest
            group.
                ``(V) 1 member representing a national forestry group.
                ``(W) 1 member representing a national conservation or
            natural resource group.
                ``(X) 1 member representing private sector organizations
            involved in international development.
                ``(Y) 1 member representing a national social science
            association.'';
            (2) in subsection (g)(1), by striking ``$350,000'' and
        inserting ``$500,000''; and
            (3) in subsection (h), by striking ``2007'' and inserting
        ``2012''.
        (b) No Effect on Terms.--Nothing in this section or any amendment
    made by this section affects the term of any member of the National
    Agricultural Research, Extension, Education, and Economics Advisory
    Board serving as of the date of enactment of this Act.
    SEC. 7103. SPECIALTY CROP COMMITTEE REPORT.
        Section 1408A(c) of the National Agricultural Research, Extension,
    and Teaching Policy Act of 1977 (7 U.S.C. 3123a(c)) is amended by
    adding at the end the following:
            ``(4) Analyses of changes in macroeconomic conditions,
        technologies, and policies on specialty crop production and
        consumption, with particular focus on the effect of those changes
        on the financial stability of producers.
            ``(5) Development of data that provide applied information
        useful to specialty crop growers, their associations, and other
        interested beneficiaries in evaluating that industry from a
        regional and national perspective.''.
    SEC. 7104. RENEWABLE ENERGY COMMITTEE.
        The National Agricultural Research, Extension, and Teaching Policy
    Act of 1977 is amended by inserting after section 1408A (7 U.S.C.
    3123a) the following:
    ``SEC. 1408B. RENEWABLE ENERGY COMMITTEE.
        ``(a) Initial Members.--Not later than 90 days after the date of
    enactment of this section, the executive committee of the Advisory
    Board shall establish and appoint the initial members of a permanent
    renewable energy committee.
        ``(b) Duties.--The permanent renewable energy committee shall study
    the scope and effectiveness of research, extension, and economics
    programs affecting the renewable energy industry.
        ``(c) Nonadvisory Board Members.--
            ``(1) In general.--An individual who is not a member of the
        Advisory Board may be appointed as a member of the renewable energy
        committee.
            ``(2) Service.--A member of the renewable energy committee
        shall serve at the discretion of the executive committee.
        ``(d) Report by Renewable Energy Committee.--Not later than 180
    days after the date of establishment of the renewable energy committee,
    and annually thereafter, the renewable energy committee shall submit to
    the Advisory Board a report that contains the findings and any
    recommendations of the renewable energy committee with respect to the
    study conducted under subsection (b).
        ``(e) Consultation.--In carrying out the duties described in
    subsection (b), the renewable energy committee shall consult with the
    Biomass Research and Development Technical Advisory Committee
    established under section 9008(d) of the Biomass Research and
    Development Act of 2000 (7 U.S.C. 8605).
        ``(f) Matters To Be Considered in Budget Recommendation.--In
    preparing the annual budget recommendations for the Department, the
    Secretary shall take into consideration those findings and
    recommendations contained in the most recent report of the renewable
    energy committee under subsection (d) that are developed by the
    Advisory Committee.
        ``(g) Report by the Secretary.--In the budget material submitted to
    Congress by the Secretary in connection with the budget submitted
    pursuant to section 1105 of title 31, United States Code, for a fiscal
    year, the Secretary shall include a report that describes the ways in
    which the Secretary addressed each recommendation of the renewable
    energy committee described in subsection (f).''.
    SEC. 7105. VETERINARY MEDICINE LOAN REPAYMENT.
        (a) In General.--Section 1415A of the National Agricultural
    Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3151a)
    is amended--
            (1) by striking subsection (b) and inserting the following:
        ``(b) Determination of Veterinarian Shortage Situations.--In
    determining `veterinarian shortage situations', the Secretary may
    consider--
            ``(1) geographical areas that the Secretary determines have a
        shortage of veterinarians; and
            ``(2) areas of veterinary practice that the Secretary
        determines have a shortage of veterinarians, such as food animal
        medicine, public health, epidemiology, and food safety.'';
            (2) in subsection (c), by adding at the end the following:
            ``(8) Priority.--In administering the program, the Secretary
        shall give priority to agreements with veterinarians for the
        practice of food animal medicine in veterinarian shortage
        situations.'';
            (3) by redesignating subsection (d) as subsection (f); and
            (4) by inserting after subsection (c) the following:
        ``(d) Use of Funds.--None of the funds appropriated to the
    Secretary under subsection (f) may be used to carry out section 5379 of
    title 5, United States Code.
        ``(e) Regulations.--Notwithstanding subchapter II of chapter 5 of
    title 5, United States Code, not later than 270 days after the date of
    enactment of this subsection, the Secretary shall promulgate
    regulations to carry out this section.''.
        (b) Disapproval of Transfer of Funds.--Congress disapproves the
    transfer of funds from the Cooperative State Research, Education, and
    Extension Service to the Food Safety and Inspection Service described
    in the notice of use of funds for implementation of the veterinary
    medicine loan repayment program authorized by the National Veterinary
    Medical Service Act (72 Fed. Reg. 48609 (August 24, 2007)), and such
    funds shall be rescinded on the date of enactment of this Act and made
    available to the Secretary, without further appropriation or fiscal
    year limitation, for use only in accordance with section 1415A of the
    National Agricultural Research, Extension, and Teaching Policy Act of
    1977 (7 U.S.C. 3151a) (as amended by subsection (a)).
    SEC. 7106. ELIGIBILITY OF UNIVERSITY OF THE DISTRICT OF COLUMBIA FOR
    GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES EDUCATION.
        Section 1417 of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3152) is amended--
            (1) in the matter preceding paragraph (1) of subsection (b), by
        inserting ``(including the University of the District of
        Columbia)'' after ``land-grant colleges and universities''; and
            (2) in subsection (d)(2), by inserting ``(including the
        University of the District of Columbia)'' after ``universities''.
    SEC. 7107. GRANTS TO 1890 SCHOOLS TO EXPAND EXTENSION CAPACITY.
        Section 1417(b)(4) of the National Agricultural Research,
    Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(b)(4)) is
    amended by striking ``teaching and research'' and inserting ``teaching,
    research, and extension''.
    SEC. 7108. EXPANSION OF FOOD AND AGRICULTURAL SCIENCES AWARDS.
        Section 1417(i) of the National Agricultural Research, Extension,
    and Teaching Policy Act of 1977 (7 U.S.C. 3152(i)) is amended--
            (1) in the subsection heading, by striking ``Teaching Awards''
        and inserting ``Teaching, Extension, and Research Awards''; and
            (2) by striking paragraph (1) and inserting the following:
            ``(1) Establishment.--
                ``(A) In general.--The Secretary shall establish a National
            Food and Agricultural Sciences Teaching, Extension, and
            Research Awards program to recognize and promote excellence in
            teaching, extension, and research in the food and agricultural
            sciences at a college or university.
                ``(B) Minimum requirement.--The Secretary shall make at
            least 1 cash award in each fiscal year to a nominee selected by
            the Secretary for excellence in each of the areas of teaching,
            extension, and research of food and agricultural science at a
            college or university.''.
    SEC. 7109. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES
    EDUCATION.
        (a) Education Teaching Programs.--Section 1417(j) of the National
    Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
    U.S.C. 3152(j)) is amended--
            (1) in the subsection heading, by striking ``Secondary
        Education and 2-Year Postsecondary Education Teaching Programs''
        and inserting ``Secondary Education, 2-Year Postsecondary
        Education, and Agriculture in the K-12 Classroom''; and
            (2) in paragraph (3)--
                (A) by striking ``secondary schools, and institutions of
            higher education that award an associate's degree'' and
            inserting ``secondary schools, institutions of higher education
            that award an associate's degree, other institutions of higher
            education, and nonprofit organizations'';
                (B) in subparagraph (E), by striking ``and'' at the end;
                (C) in subparagraph (F), by striking the period at the end
            and inserting ``; and''; and
                (D) by adding at the end the following:
                ``(G) to support current agriculture in the classroom
            programs for grades K-12.''.
        (b) Report.--Section 1417 of the National Agricultural Research,
    Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152) is amended--
            (1) by redesignating subsection (l) as subsection (m); and
            (2) by inserting after subsection (k) the following:
        ``(l) Report.--The Secretary shall submit to the Committee on
    Agriculture of the House of Representatives and the Committee on
    Agriculture, Nutrition, and Forestry of the Senate a biennial report
    detailing the distribution of funds used to implement the teaching
    programs under subsection (j).''.
        (c) Authorization of Appropriations.--Section 1417(m) of the
    National Agricultural Research, Extension, and Teaching Policy Act of
    1977 (as redesignated by subsection (b)(1)) is amended by striking
    ``2007'' and inserting ``2012''.
        (d) Effective Date.--The amendments made by subsection (a) take
    effect on October 1, 2008.
    SEC. 7110. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF ALCOHOLS
    AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL COMMODITIES AND FOREST
    PRODUCTS.
        (a) In General.--Section 1419 of the National Agricultural
    Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154) is
    repealed.
        (b) Conforming Amendment.--Section 1463(a) of the National
    Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
    U.S.C. 3311(a)) is amended by striking ``1419,''.
    SEC. 7111. POLICY RESEARCH CENTERS.
        Section 1419A of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3155) is amended--
            (1) in subsection (a)(1), by inserting ``(including
        commodities, livestock, dairy, and specialty crops)'' after
        ``agricultural sectors'';
            (2) in subsection (b), by inserting ``(including the Food
        Agricultural Policy Research Institute, the Agricultural and Food
        Policy Center, the Rural Policy Research Institute, and the
        National Drought Mitigation Center)'' after ``research institutions
        and organizations''; and
            (3) in subsection (d), by striking ``2007'' and inserting
        ``2012''.
    SEC. 7112. EDUCATION GRANTS TO ALASKA NATIVE-SERVING INSTITUTIONS AND
    NATIVE HAWAIIAN-SERVING INSTITUTIONS.
        Section 759 of the Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2000 (7 U.S.C.
    3242)--
            (1) is amended--
                (A) in subsection (a)(3), by striking ``2006'' and
            inserting ``2012''; and
                (B) in subsection (b)--
                    (i) in paragraph (2)(A), by inserting before the
                semicolon at the end the following: ``, including
                permitting consortia to designate fiscal agents for the
                members of the consortia and to allocate among the members
                funds made available under this section''; and
                    (ii) in paragraph (3), by striking ``2006'' and
                inserting ``2012'';
            (2) is redesignated as section 1419B of the National
        Agricultural Research, Extension, and Teaching Policy Act of 1977;
        and
            (3) is moved so as to appear after section 1419A of that Act (7
        U.S.C. 3155).
    SEC. 7113. EMPHASIS OF HUMAN NUTRITION INITIATIVE.
        Section 1424(b) of the National Agricultural Research, Extension,
    and Teaching Policy Act of 1977 (7 U.S.C. 3174(b)) is amended--
            (1) in paragraph (1), by striking ``and,'';
            (2) in paragraph (2), by striking the comma at the end and
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(3) proposals that examine the efficacy of current
        agriculture policies in promoting the health and welfare of
        economically disadvantaged populations;''.
    SEC. 7114. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH
    PROGRAM.
        Section 1424(d) of the National Agricultural Research, Extension,
    and Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) is amended by
    striking ``2007'' and inserting ``2012''.
    SEC. 7115. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND AGRICULTURAL
    RESEARCH.
        Section 1424A(d) of the National Agricultural Research, Extension,
    and Teaching Policy Act of 1977 (7 U.S.C. 3174a(d)) is amended by
    striking ``2007'' and inserting ``2012''.
    SEC. 7116. NUTRITION EDUCATION PROGRAM.
        (a) In General.--Section 1425 of the National Agricultural
    Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175) is
    amended--
            (1) by redesignating subsections (a) through (c) as subsections
        (b) through (d), respectively;
            (2) by striking the section heading and designation and
        inserting the following:
    ``SEC. 1425. NUTRITION EDUCATION PROGRAM.
        ``(a) Definition of 1862 Institution and 1890 Institution.--In this
    section, the terms `1862 Institution' and `1890 Institution' have the
    meaning given those terms in section 2 of the Agricultural Research,
    Extension, and Education Reform Act of 1998 (7 U.S.C. 7601).'';
            (3) in subsection (b) (as redesignated by paragraph (1)), by
        striking ``(b) The Secretary'' and inserting the following:
        ``(b) Establishment.--The Secretary'';
            (4) in subsection (c) (as so redesignated), by striking ``(c)
        In order to enable'' and inserting the following:
        ``(c) Employment and Training.--To enable'';
            (5) in subsection (d) (as redesignated by paragraph (1))--
                (A) by striking ``(d) Beginning'' and inserting the
            following:
        ``(d) Allocation of Funding.--Beginning'';
                (B) in paragraph (2), by striking subparagraph (B) and
            inserting the following:
                ``(B) Notwithstanding section 3(d) of the Act of May 8,
            1914 (7 U.S.C. 343(d)), the remainder shall be allocated among
            the States as follows:
                    ``(i) $100,000 shall be distributed to each 1862
                Institution and 1890 Institution.
                    ``(ii) Subject to clause (iii), the remainder shall be
                allocated to each State in an amount that bears the same
                ratio to the total amount to be allocated under this clause
                as--

                        ``(I) the population living at or below 125 percent
                    of the income poverty guidelines (as prescribed by the
                    Office of Management and Budget and as adjusted
                    pursuant to section 673(2) of the Community Services
                    Block Grant Act (42 U.S.C. 9902(2))) in the State;
                    bears to
                        ``(II) the total population living at or below 125
                    percent of those income poverty guidelines in all
                    States;

                as determined by the most recent decennial census at the
                time at which each such additional amount is first
                appropriated.
                    ``(iii)(I) Before any allocation of funds under clause
                (ii), for any fiscal year for which the amount of funds
                appropriated for the conduct of the expanded food and
                nutrition education program exceeds the amount of funds
                appropriated for the program for fiscal year 2007, the
                following percentage of such excess funds for the fiscal
                year shall be allocated to the 1890 Institutions in
                accordance with subclause (II):

                        ``(aa) 10 percent for fiscal year 2009.
                        ``(bb) 11 percent for fiscal year 2010.
                        ``(cc) 12 percent for fiscal year 2011.
                        ``(dd) 13 percent for fiscal year 2012.
                        ``(ee) 14 percent for fiscal year 2013.
                        ``(ff) 15 percent for fiscal year 2014 and for each
                    fiscal year thereafter.

                    ``(II) Funds made available under subclause (I) shall
                be allocated to each 1890 Institution in an amount that
                bears the same ratio to the total amount to be allocated
                under this clause as--

                        ``(aa) the population living at or below 125
                    percent of the income poverty guidelines (as prescribed
                    by the Office of Management and Budget and as adjusted
                    pursuant to section 673(2) of the Community Services
                    Block Grant Act (42 U.S.C. 9902(2))) in the State in
                    which the 1890 Institution is located; bears to
                        ``(bb) the total population living at or below 125
                    percent of those income poverty guidelines in all
                    States in which 1890 Institutions are located;

                as determined by the most recent decennial census at the
                time at which each such additional amount is first
                appropriated.
                    ``(iv) Nothing in this subparagraph precludes the
                Secretary from developing educational materials and
                programs for persons in income ranges above the level
                designated in this subparagraph.''; and
                (C) by striking paragraph (3); and
            (6) by adding at the end the following:
        ``(e) Complementary Administration.--The Secretary shall ensure the
    complementary administration of the expanded food and nutrition
    education program by 1862 Institutions and 1890 Institutions in a
    State.
        ``(f) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out the expanded food and nutrition education
    program established under section 3(d) of the Act of May 8, 1914 (7
    U.S.C. 343(d)), and this section $90,000,000 for each of fiscal years
    2009 through 2012.''.
        (b) Conforming Amendment.--Section 1588(b) of the Food Security Act
    of 1985 (7 U.S.C. 3175e(b)) is amended by striking ``section
    1425(c)(2)'' and inserting ``section 1425(d)(2)''.
        (c) Effective Date.--The amendments made by this section take
    effect on October 1, 2008.
    SEC. 7117. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS.
        Section 1433(a) of the National Agricultural Research, Extension,
    and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) is amended in the
    first sentence by striking ``2007'' and inserting ``2012''.
    SEC. 7118. COOPERATION AMONG ELIGIBLE INSTITUTIONS.
        Section 1433 of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3195) is amended by adding at the
    end the following:
        ``(g) Cooperation Among Eligible Institutions.--The Secretary, to
    the maximum extent practicable, shall encourage eligible institutions
    to cooperate in setting research priorities under this section through
    the conduct of regular regional and national meetings.''.
    SEC. 7119. APPROPRIATIONS FOR RESEARCH ON NATIONAL OR REGIONAL
    PROBLEMS.
        Section 1434(a) of the National Agricultural Research, Extension,
    and Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) is amended by
    striking ``2007'' and inserting ``2012''.
    SEC. 7120. ANIMAL HEALTH AND DISEASE RESEARCH PROGRAM.
        Section 1434(b) of the National Agricultural Research, Extension,
    and Teaching Policy Act of 1977 (7 U.S.C. 3196(b)) is amended by
    inserting after ``universities'' the following: ``(including 1890
    Institutions (as defined in section 2 of the Agricultural Research,
    Extension, and Education Reform Act of 1998 (7 U.S.C. 7601)))''.
    SEC. 7121. AUTHORIZATION LEVEL FOR EXTENSION AT 1890 LAND-GRANT
    COLLEGES.
        Section 1444(a)(2) of the National Agricultural Research,
    Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3221(a)(2)) is
    amended by striking ``15 percent'' and inserting ``20 percent''.
    SEC. 7122. AUTHORIZATION LEVEL FOR AGRICULTURAL RESEARCH AT 1890 LAND-
    GRANT COLLEGES.
        Section 1445(a)(2) of the National Agricultural Research,
    Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222(a)(2)) is
    amended by striking ``25 percent'' and inserting ``30 percent''.
    SEC. 7123. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES
    AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE UNIVERSITY.
        Section 1447(b) of the National Agricultural Research, Extension,
    and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by
    striking ``2007'' and inserting ``2012''.
    SEC. 7124. 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. 7125. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES FACILITIES
    AND EQUIPMENT AT INSULAR AREA LAND-GRANT INSTITUTIONS.
        The National Agricultural Research, Extension, and Teaching Policy
    Act of 1977 (7 U.S.C. 3101 et seq.) is amended by inserting after
    section 1447A (as added by section 7124) the following:
    ``SEC. 1447B. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES
    FACILITIES AND EQUIPMENT AT INSULAR AREA LAND-GRANT INSTITUTIONS.
        ``(a) Purpose.--It is the intent of Congress to assist the land-
    grant institutions in the insular areas in efforts to acquire, alter,
    or repair facilities or relevant equipment necessary for conducting
    agricultural research.
        ``(b) Method of Awarding Grants.--Grants awarded pursuant to this
    section shall be made in such amounts and under such terms and
    conditions as the Secretary determines necessary to carry out the
    purposes of this section.
        ``(c) Regulations.--The Secretary may promulgate such rules and
    regulations as the Secretary considers to be necessary to carry out
    this section.
        ``(d) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $8,000,000 for each of fiscal
    years 2008 through 2012.''.
    SEC. 7126. NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS.
        Section 1448 of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3222c) is amended by striking
    ``2007'' each place it appears in subsections (a)(1) and (f) and
    inserting ``2012''.
    SEC. 7127. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND EXTENSION
    ACTIVITIES OF 1890 INSTITUTIONS.
        Section 1449(c) of the National Agricultural Research, Extension,
    and Teaching Policy Act of 1977 (7 U.S.C. 3222d(c)) is amended--
            (1) in the first sentence--
                (A) by striking ``for each of fiscal years 2003 through
            2007,''; and
                (B) by inserting ``equal'' before ``matching''; and
            (2) by striking the second sentence and all that follows
        through paragraph (5).
    SEC. 7128. HISPANIC-SERVING INSTITUTIONS.
        Section 1455 of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3241) is amended--
            (1) in subsection (a) by striking ``(or grants without regard
        to any requirement for competition)'';
            (2) in subsection (b)(1), by striking ``of consortia''; and
            (3) in subsection (c)--
                (A) by striking ``$20,000,000'' and inserting
            ``$40,000,000''; and
                (B) by striking ``2007'' and inserting ``2012''.
    SEC. 7129. HISPANIC-SERVING AGRICULTURAL COLLEGES AND UNIVERSITIES.
        (a) In General.--The National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 is amended by inserting after section 1455
    (7 U.S.C. 3241) the following:
    ``SEC. 1456. 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 paragraph (1); divided by
                ``(B) the number of Hispanic-serving agricultural colleges
            and universities.
            ``(3) Use of funds.--
                ``(A) In general.--Amounts authorized to be appropriated
            under this subsection shall be used in the same manner as is
            prescribed for colleges under the Act of August 30, 1890
            (commonly known as the `Second Morrill Act') (7 U.S.C. 321 et
            seq.).
                ``(B) Relationship to other law.--Except 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 for payments to
            Hispanic-serving agricultural colleges and universities (as
            defined in section 1404 of the National Agricultural Research,
            Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103))
            such sums as are necessary to carry out this paragraph for
            fiscal year 2008 and each fiscal year thereafter, to remain
            available until expended.
                ``(B) Additional amount.--Amounts made available under this
            paragraph shall be in addition to any other amounts made
            available under this section to States, the Commonwealth of
            Puerto Rico, Guam, or the United States Virgin Islands.
                ``(C) Administration.--Amounts made available under this
            paragraph shall be--
                    ``(i) distributed on the basis of a competitive
                application process to be developed and implemented by the
                Secretary;
                    ``(ii) paid by the Secretary to the State institutions
                established in accordance with the Act of July 2, 1862
                (commonly known as the `First Morrill Act') (7 U.S.C. 301
                et seq.); and
                    ``(iii) administered by State institutions through
                cooperative agreements with the Hispanic-serving
                agricultural colleges and universities in the State in
                accordance with regulations promulgated by the
                Secretary.''; and
            (2) in subsection (f)--
                (A) in the subsection heading, by inserting ``and Hispanic-
            Serving Agricultural Colleges and Universities'' after ``1994
            Institutions''; and
                (B) by striking ``pursuant to subsection (b)(3)'' and
            inserting ``or Hispanic-serving agricultural colleges and
            universities in accordance with paragraphs (3) and (4) of
            subsection (b)''.
        (c) Conforming Amendments.--
            (1) Section 2 of the Agricultural Research, Extension, and
        Education Reform Act of 1998 (7 U.S.C. 7601) is amended--
                (A) by redesignating paragraph (6) as paragraph (7); and
                (B) by inserting after paragraph (5) the following:
            ``(6) Hispanic-serving agricultural colleges and
        universities.--The term `Hispanic-serving agricultural colleges and
        universities' has the meaning given the term in section 1404 of the
        National Agricultural Research, Extension, and Teaching Policy Act
        of 1977 (7 U.S.C. 3103).''.
            (2) Section 102(c) of the Agricultural Research, Extension, and
        Education Reform Act of 1998 (7 U.S.C. 7612(c)) is amended--
                (A) in the subsection heading, by inserting ``and Hispanic-
            Serving Agricultural Colleges and Universities'' after
            ``Institutions''; and
                (B) in paragraph (1), by striking `` and 1994 Institution''
            and inserting ``1994 Institution, and Hispanic-serving
            agricultural college and university''.
            (3) Section 103(e) of the Agricultural Research, Extension, and
        Education Reform Act of 1998 (7 U.S.C. 7613(e)) is amended by
        adding at the end the following:
            ``(3) Hispanic-serving agricultural colleges and
        universities.--To be eligible to obtain agricultural extension
        funds from the Secretary for an activity, each Hispanic-serving
        agricultural college and university shall--
                ``(A) establish a process for merit review of the activity;
            and
                ``(B) review the activity in accordance with such
            process.''.
            (4) Section 406(b) of the Agricultural Research, Extension, and
        Education Reform Act of 1998 (7 U.S.C. 7626(b)) is amended by
        striking ``and 1994 Institutions'' and inserting ``, 1994
        Institutions, and Hispanic-serving agricultural colleges and
        universities''.
    SEC. 7130. INTERNATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND
    EDUCATION.
        Section 1458(a) of the National Agricultural Research, Extension,
    and Teaching Policy Act of 1977 (7 U.S.C. 3291(a)) is amended--
            (1) in paragraph (1)--
                (A) in subparagraph (A), by striking ``and'' after the
            semicolon;
                (B) in subparagraph (B), by adding ``and'' at the end; and
                (C) by adding at the end the following:
                ``(C) giving priority to those institutions with existing
            memoranda of understanding, agreements, or other formal ties to
            United States institutions, or Federal or State agencies;'';
            (2) by striking paragraph (3) and inserting the following:
            ``(3) enter into agreements with land-grant colleges and
        universities, Hispanic-serving agricultural colleges and
        universities, the Agency for International Development, and
        international organizations (such as the United Nations, the World
        Bank, regional development banks, international agricultural
        research centers), or other organizations, institutions, or
        individuals with comparable goals, to promote and support--
                ``(A) the development of a viable and sustainable global
            agricultural system;
                ``(B) antihunger and improved international nutrition
            efforts; and
                ``(C) increased quantity, quality, and availability of
            food;'';
            (3) in paragraph (7)(A), by striking ``and land-grant colleges
        and universities'' and inserting ``, land-grant colleges and
        universities, and Hispanic-serving agricultural colleges and
        universities'';
            (4) in paragraph (9)--
                (A) in subparagraph (A), by striking ``or other colleges
            and universities'' and inserting ``, Hispanic-serving
            agricultural colleges and universities, or other colleges and
            universities''; and
                (B) in subparagraph (D), by striking ``and'' at the end;
            (5) in paragraph (10), by striking the period at the end and
        inserting ``; and''; and
            (6) by adding at the end the following:
            ``(11) establish a program for the purpose of providing
        fellowships to United States or foreign students to study at
        foreign agricultural colleges and universities working under
        agreements provided for under paragraph (3).''.
    SEC. 7131. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE
    AND EDUCATION PROGRAMS.
        Section 1459A(c) of the National Agricultural Research, Extension,
    and Teaching Policy Act of 1977 (7 U.S.C. 3292b(c)) is amended by
    striking ``2007'' and inserting ``2012''.
    SEC. 7132. ADMINISTRATION.
        (a) Limitation on Indirect Costs for Agricultural Research,
    Education, and Extension Programs.--Section 1462(a) of the National
    Agriculture Research, Extension, and Teaching Policy Act of 1977 (7
    U.S.C. 3310(a)) is amended--
            (1) by striking ``a competitive'' and inserting ``any''; and
            (2) by striking ``19 percent'' and inserting ``22 percent''.
        (b) Auditing, Reporting, Bookkeeping, and Administrative
    Requirements.--Section 1469(a)(3) of the National Agricultural
    Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
    3315(a)(3)) is amended by striking ``appropriated'' and inserting
    ``made available''.
    SEC. 7133. RESEARCH EQUIPMENT GRANTS.
        Section 1462A(e) of the National Agricultural Research, Extension,
    and Teaching Policy Act of 1977 (7 U.S.C. 3310a(e)) is amended by
    striking ``2007'' and inserting ``2012''.
    SEC. 7134. UNIVERSITY RESEARCH.
        Section 1463 of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended by striking
    ``2007'' each place it appears in subsections (a) and (b) and inserting
    ``2012''.
    SEC. 7135. EXTENSION SERVICE.
        Section 1464 of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking
    ``2007'' and inserting ``2012''.
    SEC. 7136. SUPPLEMENTAL AND ALTERNATIVE CROPS.
        Section 1473D(a) of the National Agricultural Research, Extension,
    and Teaching Policy Act of 1977 (7 U.S.C. 3319d(a)) is amended by
    striking ``2007'' and inserting ``2012''.
    SEC. 7137. NEW ERA RURAL TECHNOLOGY PROGRAM.
        Subtitle K of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) is amended by
    adding at the end the following:
    ``SEC. 1473E. NEW ERA RURAL TECHNOLOGY PROGRAM.
        ``(a) Definition of Community College.--In this section, the term
    `community college' means an institution of higher education (as
    defined in section 101 of the Higher Education Act of 1965 (20 U.S.C.
    1001))--
            ``(1) that admits as regular students individuals who--
                ``(A) are beyond the age of compulsory school attendance in
            the State in which the institution is located; and
                ``(B) have the ability to benefit from the training offered
            by the institution;
            ``(2) that does not provide an educational program for which
        the institution awards a bachelor's degree or an equivalent degree;
        and
            ``(3) that--
                ``(A) provides an educational program of not less than 2
            years that is acceptable for full credit toward such a degree;
            or
                ``(B) offers a 2-year program in engineering, technology,
            mathematics, or the physical, chemical, or biological sciences,
            designed to prepare a student to work as a technician or at the
            semiprofessional level in engineering, scientific, or other
            technological fields requiring the understanding and
            application of basic engineering, scientific, or mathematical
            principles of knowledge.
        ``(b) Functions.--
            ``(1) Establishment.--
                ``(A) In general.--The Secretary shall establish a program
            to be known as the `New Era Rural Technology Program', to make
            grants available for technology development, applied research,
            and training to aid in the development of an agriculture-based
            renewable energy workforce.
                ``(B) Support.--The initiative under this section shall
            support the fields of--
                    ``(i) bioenergy;
                    ``(ii) pulp and paper manufacturing; and
                    ``(iii) agriculture-based renewable energy resources.
            ``(2) Requirements for funding.--To receive funding under this
        section, an entity shall--
                ``(A) be a community college or advanced technological
            center, located in a rural area and in existence on the date of
            the enactment of this section, that participates in
            agricultural or bioenergy research and applied research;
                ``(B) have a proven record of development and
            implementation of programs to meet the needs of students,
            educators, and business and industry to supply the agriculture-
            based, renewable energy or pulp and paper manufacturing fields
            with certified technicians, as determined by the Secretary; and
                ``(C) have the ability to leverage existing partnerships
            and occupational outreach and training programs for secondary
            schools, 4-year institutions, and relevant nonprofit
            organizations.
        ``(c) Grant Priority.--In providing grants under this section, the
    Secretary shall give preference to eligible entities working in
    partnership--
            ``(1) to improve information-sharing capacity; and
            ``(2) to maximize the ability to meet the requirements of this
        section.
        ``(d) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as are necessary for
    each of fiscal years 2008 through 2012.''.
    SEC. 7138. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS.
        Subtitle K of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended by
    section 7137) is amended by adding at the end the following:
    ``SEC. 1473F. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS.
        ``(a) Grant Program.--
            ``(1) In general.--The Secretary shall make competitive grants
        to NLGCA Institutions to assist the NLGCA Institutions in
        maintaining and expanding the capacity of the NLGCA Institutions to
        conduct education, research, and outreach activities relating to--
                ``(A) agriculture;
                ``(B) renewable resources; and
                ``(C) other similar disciplines.
            ``(2) Use of funds.--An NLGCA Institution that receives a grant
        under paragraph (1) may use the funds made available through the
        grant to maintain and expand the capacity of the NLGCA
        Institution--
                ``(A) to successfully compete for funds from Federal grants
            and other sources to carry out educational, research, and
            outreach activities that address priority concerns of national,
            regional, State, and local interest;
                ``(B) to disseminate information relating to priority
            concerns to--
                    ``(i) interested members of the agriculture, renewable
                resources, and other relevant communities;
                    ``(ii) the public; and
                    ``(iii) any other interested entity;
                ``(C) to encourage members of the agriculture, renewable
            resources, and other relevant communities to participate in
            priority education, research, and outreach activities by
            providing matching funding to leverage grant funds; and
                ``(D) through--
                    ``(i) the purchase or other acquisition of equipment
                and other infrastructure (not including alteration, repair,
                renovation, or construction of buildings);
                    ``(ii) the professional growth and development of the
                faculty of the NLGCA Institution; and
                    ``(iii) the development of graduate assistantships.
        ``(b) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as are necessary for
    each of fiscal years 2008 through 2012.''.
    SEC. 7139. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND TECHNOLOGY
    FELLOWSHIP PROGRAM.
        Subtitle K of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended by
    section 7138) is amended by adding at the end the following:
    ``SEC. 1473G. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND TECHNOLOGY
    FELLOWSHIP PROGRAM.
        ``(a) Fellowship Program.--
            ``(1) In general.--The Secretary shall establish a fellowship
        program, to be known as the `Borlaug International Agricultural
        Science and Technology Fellowship Program,' to provide fellowships
        for scientific training and study in the United States to
        individuals from eligible countries (as described in subsection
        (b)) who specialize in agricultural education, research, and
        extension.
            ``(2) Programs.--The Secretary shall carry out the fellowship
        program by implementing 3 programs designed to assist individual
        fellowship recipients, including--
                ``(A) a graduate studies program in agriculture to assist
            individuals who participate in graduate agricultural degree
            training at a United States institution;
                ``(B) an individual career improvement program to assist
            agricultural scientists from developing countries in upgrading
            skills and understanding in agricultural science and
            technology; and
                ``(C) a Borlaug agricultural policy executive leadership
            course to assist senior agricultural policy makers from
            eligible countries, with an initial focus on individuals from
            sub-Saharan Africa and the independent states of the former
            Soviet Union.
        ``(b) Eligible Countries.--An eligible country is a developing
    country, as determined by the Secretary using a gross national income
    per capita test selected by the Secretary.
        ``(c) Purpose of Fellowships.--A fellowship provided under this
    section shall--
            ``(1) promote food security and economic growth in eligible
        countries by--
                ``(A) educating a new generation of agricultural
            scientists;
                ``(B) increasing scientific knowledge and collaborative
            research to improve agricultural productivity; and
                ``(C) extending that knowledge to users and intermediaries
            in the marketplace; and
            ``(2) shall support--
                ``(A) training and collaborative research opportunities
            through exchanges for entry level international agricultural
            research scientists, faculty, and policymakers from eligible
            countries;
                ``(B) collaborative research to improve agricultural
            productivity;
                ``(C) the transfer of new science and agricultural
            technologies to strengthen agricultural practice; and
                ``(D) the reduction of barriers to technology adoption.
        ``(d) Fellowship Recipients.--
            ``(1) Eligible candidates.--The Secretary may provide
        fellowships under this section to individuals from eligible
        countries who specialize or have experience in agricultural
        education, research, extension, or related fields, including--
                ``(A) individuals from the public and private sectors; and
                ``(B) private agricultural producers.
            ``(2) Candidate identification.--The Secretary shall use the
        expertise of United States land-grant colleges and universities and
        similar universities, international organizations working in
        agricultural research and outreach, and national agricultural
        research organizations to help identify program candidates for
        fellowships under this section from the public and private sectors
        of eligible countries.
        ``(e) Use of Fellowships.--A fellowship provided under this section
    shall be used--
            ``(1) to promote collaborative programs among agricultural
        professionals of eligible countries, agricultural professionals of
        the United States, the international agricultural research system,
        and, as appropriate, United States entities conducting research;
        and
            ``(2) to support fellowship recipients through programs
        described in subsection (a)(2).
        ``(f) Program Implementation.--The Secretary shall provide for the
    management, coordination, evaluation, and monitoring of the Borlaug
    International Agricultural Science and Technology Fellowship Program
    and for the individual programs described in subsection (a)(2), except
    that the Secretary may contract out to 1 or more collaborating
    universities the management of 1 or more of the fellowship programs.
        ``(g) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as are necessary to carry out this section, to
    remain available until expended.''.
    SEC. 7140. AQUACULTURE ASSISTANCE PROGRAMS.
        Section 1477 of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977 (7 U.S.C. 3324) is amended by striking
    ``2007'' and inserting ``2012''.
    SEC. 7141. RANGELAND RESEARCH GRANTS.
        Section 1483(a) of the National Agricultural Research, Extension,
    and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by
    striking ``2007'' and inserting ``2012''.
    SEC. 7142. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND RESPONSE.
        Section 1484(a) of the National Agricultural Research, Extension,
    and Teaching Policy Act of 1977 (7 U.S.C. 3351(a)) is amended by
    striking ``2007'' and inserting ``2012''.
    SEC. 7143. RESIDENT INSTRUCTION AND DISTANCE EDUCATION GRANTS PROGRAM
    FOR INSULAR AREA INSTITUTIONS OF HIGHER EDUCATION.
        (a) Distance Education Grants for Insular Areas.--Section 1490(f)
    of the National Agricultural Research, Extension, and Teaching Policy
    Act of 1977 (7 U.S.C. 3362(f)) is amended by striking ``2007'' and
    inserting ``2012''.
        (b) Resident Instruction Grants for Insular Areas.--Section 1491 of
    the National Agricultural Research, Extension, and Teaching Policy Act
    of 1977 (7 U.S.C. 3363) is amended--
            (1) by redesignating subsection (e) as subsection (c); and
            (2) in subsection (c) (as so redesignated), by striking
        ``2007'' and inserting ``2012''.

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

    SEC. 7201. NATIONAL GENETICS RESOURCES PROGRAM.
        Section 1635(b) of the Food, Agriculture, Conservation, and Trade
    Act of 1990 (7 U.S.C. 5844(b)) is amended by striking ``2007'' and
    inserting ``2012''.
    SEC. 7202. NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.
        Section 1641(c) of the Food, Agriculture, Conservation, and Trade
    Act of 1990 (7 U.S.C. 5855(c)) is amended by striking ``1991 through
    1997'' and inserting ``2008 through 2012''.
    SEC. 7203. PARTNERSHIPS.
        Section 1672(d) of the Food, Agriculture, Conservation, and Trade
    Act of 1990 (7 U.S.C. 5925(d)) is amended by striking ``may'' and
    inserting ``shall''.
    SEC. 7204. HIGH-PRIORITY RESEARCH AND EXTENSION AREAS.
        (a) In General.--Section 1672 of the Food, Agriculture,
    Conservation, and Trade Act of 1990 (7 U.S.C. 5925) is amended--
            (1) in subsection (e)--
                (A) in paragraph (3), by striking ``and controlling
            aflatoxin in the food and feed chains.'' and inserting ``,
            improving, and eventually commercializing, alfatoxin controls
            in corn and other affected agricultural products and crops.'';
                (B) by striking paragraphs (1), (4), (7), (8), (15), (17),
            (21), (23), (26), (27), (32), (34), (41), (42), (43), and (45);
                (C) by redesignating paragraphs (2), (3), (5), (6), (9)
            through (14), (16), (18) through (20), (22), (24), (25), (28)
            through (31), (33), (35) through (40), and (44) as paragraphs
            (1) through (29), respectively; and
                (D) by adding at the end the following:
            ``(30) Air emissions from livestock operations.--Research and
        extension grants may be made under this section for the purpose of
        conducting field verification tests and developing mitigation
        options for air emissions from animal feeding operations.
            ``(31) Swine genome project.--Research grants may be made under
        this section to conduct swine genome research, including the
        mapping of the swine genome.
            ``(32) Cattle fever tick program.--Research and extension
        grants may be made under this section to study cattle fever ticks
        to facilitate understanding of the role of wildlife in the
        persistence and spread of cattle fever ticks, to develop advanced
        methods for eradication of cattle fever ticks, and to improve
        management of diseases relating to cattle fever ticks that are
        associated with wildlife, livestock, and human health.
            ``(33) Synthetic gypsum.--Research and extension grants may be
        made under this section to study the uses of synthetic gypsum from
        electric power plants to remediate soil and nutrient losses.
            ``(34) Cranberry research program.--Research and extension
        grants may be made under this section to study new technologies to
        assist cranberry growers in complying with Federal and State
        environmental regulations, increase production, develop new growing
        techniques, establish more efficient growing methodologies, and
        educate cranberry producers about sustainable growth practices.
            ``(35) Sorghum research initiative.--Research and extension
        grants may be made under this section to study the use of sorghum
        as a bioenergy feedstock, promote diversification in, and the
        environmental benefits of sorghum production, and promote water
        conservation through the use of sorghum.
            ``(36) Marine shrimp farming program.--Research and extension
        grants may be made under this section to establish a research
        program to advance and maintain a domestic shrimp farming industry
        in the United States.
            ``(37) Turfgrass research initiative.--Research and extension
        grants may be made under this section to study the production of
        turfgrass (including the use of water, fertilizer, pesticides,
        fossil fuels, and machinery for turf establishment and maintenance)
        and environmental protection and enhancement relating to turfgrass
        production.
            ``(38) Agricultural worker safety research initiative.--
        Research and extension grants may be made under this section--
                ``(A) to study and demonstrate methods to minimize exposure
            of farm and ranch owners and operators, pesticide handlers, and
            agricultural workers to pesticides, including research
            addressing the unique concerns of farm workers resulting from
            long-term exposure to pesticides; and
                ``(B) to develop rapid tests for on-farm use to better
            inform and educate farmers, ranchers, and farm and ranch
            workers regarding safe field re-entry intervals.
            ``(39) High plains aquifer region.--Research and extension
        grants may be made under this section to carry out
        interdisciplinary research relating to diminishing water levels and
        increased demand for water in the High Plains aquifer region.
            ``(40) Deer initiative.--Research and extension grants may be
        made under this section to support collaborative research focusing
        on the development of viable strategies for the prevention,
        diagnosis, and treatment of infectious, parasitic, and toxic
        diseases of farmed deer and the mapping of the deer genome.
            ``(41) Pasture-based beef systems research initiative.--
        Research and extension grants may be made under this section to
        study the development of forage sequences and combinations for cow-
        calf, heifer development, stocker, and finishing systems, to
        deliver optimal nutritive value for efficient production of cattle
        for pasture finishing, to optimize forage systems to improve
        marketability of pasture-finished beef, and to assess the effect of
        forage quality on reproductive fitness.
            ``(42) Agricultural practices relating to climate change.--
        Research and extension grants may be made under this section for
        field and laboratory studies that examine the ecosystem from gross
        to minute scales and for projects that explore the relationship of
        agricultural practices to climate change.
            ``(43) Brucellosis control and eradication.--Research and
        extension grants may be made under this section to conduct research
        relating to the development of vaccines and vaccine delivery
        systems to effectively control and eliminate brucellosis in
        wildlife, and to assist with the controlling of the spread of
        brucellosis from wildlife to domestic animals.
            ``(44) Bighorn and domestic sheep disease mechanisms.--Research
        and extension grants may be made under this section to conduct
        research relating to the health status of (including the presence
        of infectious diseases in) bighorn and domestic sheep under range
        conditions.
            ``(45) Agricultural development in the american-pacific
        region.--Research and extension grants may be made under this
        section to support food and agricultural science at a consortium of
        land-grant institutions in the American-Pacific region.
            ``(46) Tropical and subtropical agricultural research.--
        Research grants may be made under this section, in equal dollar
        amounts to the Caribbean and Pacific Basins, to support tropical
        and subtropical agricultural research, including pest and disease
        research, at the land-grant institutions in the Caribbean and
        Pacific regions.
            ``(47) Viral hemorrhagic septicemia.--Research and extension
        grants may be made under this section to study--
                ``(A) the effects of viral hemorrhagic septicemia (referred
            to in this paragraph as `VHS') on freshwater fish throughout
            the natural and expanding range of VHS; and
                ``(B) methods for transmission and human-mediated transport
            of VHS among waterbodies.
            ``(48) Farm and ranch safety.--Research and extension grants
        may be made under this section to carry out projects to decrease
        the incidence of injury and death on farms and ranches, including--
                ``(A) on-site farm or ranch safety reviews;
                ``(B) outreach and dissemination of farm safety research
            and interventions to agricultural employers, employees, youth,
            farm and ranch families, seasonal workers, or other
            individuals; and
                ``(C) agricultural safety education and training.
            ``(49) Women and minorities in stem fields.--Research and
        extension grants may be made under this section to increase
        participation by women and underrepresented minorities from rural
        areas in the fields of science, technology, engineering, and
        mathematics, with priority given to eligible institutions that
        carry out continuing programs funded by the Secretary.
            ``(50) Alfalfa and forage research program.--Research and
        extension grants may be made under this section for the purpose of
        studying improvements in alfalfa and forage yields, biomass and
        persistence, pest pressures, the bioenergy potential of alfalfa and
        other forages, and systems to reduce losses during harvest and
        storage.
            ``(51) Food systems veterinary medicine.--Research grants may
        be made under this section to address health issues that affect
        food-producing animals, food safety, and the environment, and to
        improve information resources, curriculum, and clinical education
        of students with respect to food animal veterinary medicine and
        food safety.
            ``(52) Biochar research.--Grants may be made under this section
        for research, extension, and integrated activities relating to the
        study of biochar production and use, including considerations of
        agronomic and economic impacts, synergies of coproduction with
        bioenergy, and the value of soil enhancements and soil carbon
        sequestration.'';
            (2) by redesignating subsection (h) as subsection (j);
            (3) by inserting after subsection (g) the following:
        ``(h) Pollinator Protection.--
            ``(1) Research and extension.--
                ``(A) Grants.--Research and extension grants may be made
            under this section--
                    ``(i) to survey and collect data on bee colony
                production and health;
                    ``(ii) to investigate pollinator biology, immunology,
                ecology, genomics, and bioinformatics;
                    ``(iii) to conduct research on various factors that may
                be contributing to or associated with colony collapse
                disorder, and other serious threats to the health of honey
                bees and other pollinators, including--

                        ``(I) parasites and pathogens of pollinators; and
                        ``(II) the sublethal effects of insecticides,
                    herbicides, and fungicides on honey bees and native and
                    managed pollinators;

                    ``(iv) to develop mitigative and preventative measures
                to improve native and managed pollinator health; and
                    ``(v) to promote the health of honey bees and native
                pollinators through habitat conservation and best
                management practices.
                ``(B) Authorization of appropriations.--There is authorized
            to be appropriated to carry out this paragraph $10,000,000 for
            each of fiscal years 2008 through 2012.
            ``(2) Department of agriculture capacity and infrastructure.--
                ``(A) In general.--The Secretary shall, to the maximum
            extent practicable, increase the capacity and infrastructure of
            the Department--
                    ``(i) to address colony collapse disorder and other
                long-term threats to pollinator health, including the
                hiring of additional personnel; and
                    ``(ii) to conduct research on colony collapse disorder
                and other pollinator issues at the facilities of the
                Department.
                ``(B) Authorization of appropriations.--There is authorized
            to be appropriated to carry out this paragraph $7,250,000 for
            each of fiscal years 2008 through 2012.
            ``(3) Honey bee pest and pathogen surveillance.--There is
        authorized to be appropriated to conduct a nationwide honey bee
        pest and pathogen surveillance program $2,750,000 for each of
        fiscal years 2008 through 2012.
            ``(4) Annual report on response to honey bee colony collapse
        disorder.--The Secretary shall submit to the Committee on
        Agriculture of the House of Representatives and the Committee on
        Agriculture, Nutrition, and Forestry of the Senate an annual report
        describing the progress made by the Department of Agriculture in--
                ``(A) investigating the cause or causes of honey bee colony
            collapse; and
                ``(B) finding appropriate strategies to reduce colony loss.
        ``(i) Regional Centers of Excellence.--
            ``(1) Establishment.--The Secretary shall prioritize regional
        centers of excellence established for specific agricultural
        commodities for the receipt of funding under this section.
            ``(2) Composition.--A regional center of excellence shall be
        composed of 1 or more colleges and universities (including land-
        grant institutions, schools of forestry, schools of veterinary
        medicine, or NLGCA Institutions (as defined in section 1404 of the
        National Agricultural Research, Extension, and Teaching Policy Act
        of 1977 (7 U.S.C. 3103))) that provide financial support to the
        regional center of excellence.
            ``(3) Criteria for regional centers of excellence.--The
        criteria for consideration to be a regional center of excellence
        shall include efforts--
                ``(A) to ensure coordination and cost-effectiveness by
            reducing unnecessarily duplicative efforts regarding research,
            teaching, and extension;
                ``(B) to leverage available resources by using public/
            private partnerships among agricultural industry groups,
            institutions of higher education, and the Federal Government;
                ``(C) to implement teaching initiatives to increase
            awareness and effectively disseminate solutions to target
            audiences through extension activities;
                ``(D) to increase the economic returns to rural communities
            by identifying, attracting, and directing funds to high-
            priority agricultural issues; and
                ``(E) to improve teaching capacity and infrastructure at
            colleges and universities (including land-grant institutions,
            schools of forestry, and schools of veterinary medicine).'';
            and
            (4) in subsection (j) (as redesignated by paragraph (2)), by
        striking ``2007'' and inserting ``2012''.
        (b) Conforming Amendments.--Section 1672 of the Food, Agriculture,
    Conservation, and Trade Act of 1990 (7 U.S.C. 5925) is amended--
            (1) in the first sentence of subsection (a), by striking ``(e),
        (f), and (g)'' and inserting ``(e) through (i)''; and
            (2) in subsection (b)--
                (A) in paragraph (1), by striking ``paragraphs (1), (6),
            (7), and (11)'' and inserting ``paragraphs (4), (7), (8), and
            (11)(B)''; and
                (B) in paragraph (2), by striking ``subsection (e)'' and
            inserting ``subsections (e) through (i)''.
    SEC. 7205. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION INITIATIVE.
        Section 1672A of the Food, Agriculture, Conservation, and Trade Act
    of 1990 (7 U.S.C. 5925a) is amended--
            (1) in subsection (b), by striking paragraph (1) and inserting
        the following:
            ``(1) In general.--Paragraphs (4), (7), (8), and (11)(B) of
        subsection (b) of the Competitive, Special, and Facilities Research
        Grant Act (7 U.S.C. 450i) shall apply with respect to the making of
        grants under this section.'';
            (2) by striking subsection (d) and inserting the following:
        ``(d) Priority.--Following the completion of a peer review process
    for grant proposals received under this section, the Secretary shall
    give priority to those grant proposals that involve--
            ``(1) the cooperation of multiple entities; and
            ``(2) States or regions with a high concentration of livestock,
        dairy, or poultry operations.'';
            (3) in subsection (e)--
                (A) in paragraph (1)(B), by inserting ``and dairy and beef
            cattle waste'' after ``swine waste''; and
                (B) by striking paragraph (5) and inserting the following:
            ``(5) Alternative uses and renewable energy.--Research and
        extension grants may be made under this section for the purpose of
        finding innovative methods and technologies to allow agricultural
        operators to make use of animal waste, such as use as fertilizer,
        methane digestion, composting, and other useful byproducts.'';
            (4) by redesignating subsection (g) as subsection (f); and
            (5) in subsection (f) (as so redesignated), by striking
        ``2007'' and inserting ``2012''.
    SEC. 7206. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE.
        (a) In General.--Section 1672B of the Food, Agriculture,
    Conservation, and Trade Act of 1990 (7 U.S.C. 5925b) (commonly known as
    the ``Organic Agriculture Research and Extension Initiative'') is
    amended--
            (1) in subsection (a)--
                (A) in paragraph (5), by striking ``and'' after the
            semicolon;
                (B) in paragraph (6), by striking the period at the end and
            inserting a semicolon; and
                (C) by adding at the end the following:
            ``(7) examining optimal conservation and environmental outcomes
        relating to organically produced agricultural products; and
            ``(8) developing new and improved seed varieties that are
        particularly suited for organic agriculture.''; and
            (2) by adding at the end the following:
        ``(f) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit
        Corporation, the Secretary shall make available to carry out this
        section--
                ``(A) $18,000,000 for fiscal year 2009; and
                ``(B) $20,000,000 for each of fiscal years 2010 through
            2012.
            ``(2) Additional funding.--In addition to amounts made
        available under paragraph (1), there is authorized to be
        appropriated to carry out this section $25,000,000 for each of
        fiscal years 2009 through 2012.''.
        (b) Coordination.--In carrying out the amendment made by this
    section, the Secretary shall ensure that the Division Chief of the
    applicable Research, Education, and Extension Office established under
    section 251 of the Department of Agriculture Reorganization Act of 1994
    (7 U.S.C. 6971) coordinates projects and activities under this section
    to ensure, to the maximum extent practicable, that unnecessary
    duplication of effort is eliminated or minimized.
    SEC. 7207. AGRICULTURAL BIOENERGY FEEDSTOCK AND ENERGY EFFICIENCY
    RESEARCH AND EXTENSION INITIATIVE.
        Title XVI of the Food, Agriculture, Conservation, and Trade Act of
    1990 (7 U.S.C. 5801 et seq.) is amended by inserting after section
    1672B (7 U.S.C. 5925b) the following:
    ``SEC. 1672C. AGRICULTURAL BIOENERGY FEEDSTOCK AND ENERGY EFFICIENCY
    RESEARCH AND EXTENSION INITIATIVE.
        ``(a) Establishment and Purpose.--There is established within the
    Department of Agriculture an agricultural bioenergy feedstock and
    energy efficiency research and extension initiative (referred to in
    this section as the `Initiative') for the purpose of enhancing the
    production of biomass energy crops and the energy efficiency of
    agricultural operations.
        ``(b) Competitive Research and Extension Grants Authorized.--In
    carrying out this section, the Secretary shall make competitive grants
    to support research and extension activities specified in subsections
    (c) and (d).
        ``(c) Agricultural Bioenergy Feedstock Research and Extension
    Areas.--
            ``(1) In general.--Agricultural bioenergy feedstock research
        and extension activities funded under the Initiative shall focus on
        improving agricultural biomass production, biomass conversion in
        biorefineries, and biomass use by--
                ``(A) supporting on-farm research on crop species, nutrient
            requirements, management practices, environmental impacts, and
            economics;
                ``(B) supporting the development and operation of on-farm,
            integrated biomass feedstock production systems;
                ``(C) leveraging the broad scientific capabilities of the
            Department of Agriculture and other entities in--
                    ``(i) plant genetics and breeding;
                    ``(ii) crop production;
                    ``(iii) soil and water science;
                    ``(iv) use of agricultural waste; and
                    ``(v) carbohydrate, lipid, protein, and lignin
                chemistry, enzyme development, and biochemistry; and
                ``(D) supporting the dissemination of any of the research
            conducted under this subsection that will assist in achieving
            the goals of this section.
            ``(2) Selection criteria.--In selecting grant recipients for
        projects under paragraph (1), the Secretary shall consider--
                ``(A) the capabilities and experiences of the applicant,
            including--
                    ``(i) research in actual field conditions; and
                    ``(ii) engineering and research knowledge relating to
                biofuels or the production of inputs for biofuel
                production;
                ``(B) the range of species types and cropping practices
            proposed for study (including species types and practices
            studied using side-by-side comparisons of those types and
            practices);
                ``(C) the need for regional diversity among feedstocks;
                ``(D) the importance of developing multiyear data relevant
            to the production of biomass feedstock crops;
                ``(E) the extent to which the project involves direct
            participation of agricultural producers;
                ``(F) the extent to which the project proposal includes a
            plan or commitment to use the biomass produced as part of the
            project in commercial channels; and
                ``(G) such other factors as the Secretary may determine.
        ``(d) Energy-Efficiency Research and Extension Areas.--On-farm
    energy-efficiency research and extension activities funded under the
    Initiative shall focus on developing and demonstrating technologies and
    production practices relating to--
            ``(1) improving on-farm renewable energy production;
            ``(2) encouraging efficient on-farm energy use;
            ``(3) promoting on-farm energy conservation;
            ``(4) making a farm or ranch energy-neutral; and
            ``(5) enhancing on-farm usage of advanced technologies to
        promote energy efficiency.
        ``(e) Best Practices Database.--The Secretary shall develop a best-
    practices database that includes information, to be available to the
    public, on--
            ``(1) the production potential of a variety of biomass crops;
        and
            ``(2) best practices for production, collection, harvesting,
        storage, and transportation of biomass crops to be used as a source
        of bioenergy.
        ``(f) Administration.--
            ``(1) In general.--Paragraphs (4), (7), (8), and (11)(B) of
        subsection (b) of the Competitive, Special, and Facilities Research
        Grant Act (7 U.S.C. 450i(b)) shall apply with respect to making
        grants under this section.
            ``(2) Consultation and coordination.--The Secretary shall--
                ``(A) make the grants in consultation with the National
            Agricultural Research, Extension, Education, and Economics
            Advisory Board; and
                ``(B) coordinate projects and activities carried out under
            the Initiative with projects and activities under section 9008
            of the Farm Security and Rural Investment Act of 2002 to
            ensure, to the maximum extent practicable, that--
                    ``(i) unnecessary duplication of effort is eliminated
                or minimized; and
                    ``(ii) the respective strengths of the Department of
                Agriculture and the Department of Energy are appropriately
                used.
            ``(3) Grant priority.--The Secretary shall give priority to
        grant applications that integrate research and extension activities
        established under subsections (c) and (d), respectively.
            ``(4) Matching funds required.--As a condition of receiving a
        grant under this section, the Secretary shall require the recipient
        of the grant to provide funds or in-kind support from non-Federal
        sources in an amount that is at least equal to the amount provided
        by the Federal Government.
            ``(5) Partnerships encouraged.--Following the completion of a
        peer review process for grant proposals received under this
        section, the Secretary may provide a priority to those grant
        proposals found as a result of the peer review process--
                ``(A) to be scientifically meritorious; and
                ``(B) that involve cooperation--
                    ``(i) among multiple entities; and
                    ``(ii) with agricultural producers.
        ``(g) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $50,000,000 for each of fiscal
    years 2008 through 2012.''.
    SEC. 7208. FARM BUSINESS MANAGEMENT AND BENCHMARKING.
        The Food, Agriculture, Conservation and Trade Act of 1990 is
    amended by inserting after section 1672C (as added by section 7207) the
    following:
    ``SEC. 1672D. FARM BUSINESS MANAGEMENT.
        ``(a) In General.--The Secretary may make competitive research and
    extension grants for the purpose of--
            ``(1) improving the farm management knowledge and skills of
        agricultural producers; and
            ``(2) establishing and maintaining a national, publicly
        available farm financial management database to support improved
        farm management.
        ``(b) Selection Criteria.--In allocating funds made available to
    carry out this section, the Secretary may give priority to grants
    that--
            ``(1) demonstrate an ability to work directly with agricultural
        producers;
            ``(2) collaborate with farm management and producer
        associations;
            ``(3) address the farm management needs of a variety of crops
        and regions of the United States; and
            ``(4) use and support the national farm financial management
        database.
        ``(c) Administration.--Paragraphs (4), (7), (8), and (11)(B) of
    subsection (b) of the Competitive, Special, and Facilities Research
    Grant Act (7 U.S.C. 450i(b)) shall apply with respect to the making of
    grants under this section.
        ``(d) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as are necessary to carry out this section.''.
    SEC. 7209. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.
        Section 1673 of the Food, Agriculture, Conservation, and Trade Act
    of 1990 (7 U.S.C. 5926) is repealed.
    SEC. 7210. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.
        Section 1680(c)(1) of the Food, Agriculture, Conservation, and
    Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by striking ``2007''
    and inserting ``2012''.
    SEC. 7211. RESEARCH ON HONEY BEE DISEASES.
        Section 1681 of the Food, Agriculture, Conservation, and Trade Act
    of 1990 (7 U.S.C. 5934) is repealed.
    SEC. 7212. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.
        Section 2381(e) of the Food, Agriculture, Conservation, and Trade
    Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking ``2007'' and
    inserting ``2012''.

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

    SEC. 7301. PEER AND MERIT REVIEW.
        Section 103(a) of the Agricultural Research, Extension, and
    Education Reform Act of 1998 (7 U.S.C. 7613(a)) is amended by adding at
    the end the following:
            ``(3) Consideration.--Peer and merit review procedures
        established under paragraphs (1) and (2) shall not take the offer
        or availability of matching funds into consideration.''.
    SEC. 7302. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT QUALITY
    RESEARCH.
        Section 402 of the Agricultural Research, Extension, and Education
    Reform Act of 1998 (7 U.S.C. 7622) is repealed.
    SEC. 7303. PRECISION AGRICULTURE.
        Section 403 of the Agricultural Research, Extension, and Education
    Reform Act of 1998 (7 U.S.C. 7623) is repealed.
    SEC. 7304. BIOBASED PRODUCTS.
        (a) Pilot Project.--Section 404(e)(2) of the Agricultural Research,
    Extension, and Education Reform Act of 1998 (7 U.S.C. 7624(e)(2)) is
    amended by striking ``2007'' and inserting ``2012''.
        (b) Authorization of Appropriations.--Section 404(h) of the
    Agricultural Research, Extension, and Education Reform Act of 1998 (7
    U.S.C. 7624(h)) is amended by striking ``2007'' and inserting ``2012''.
    SEC. 7305. THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICATION.
        Section 405 of the Agricultural Research, Extension, and Education
    Reform Act of 1998 (7 U.S.C. 7625) is repealed.
    SEC. 7306. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION COMPETITIVE
    GRANTS PROGRAM.
        Section 406(f) of the Agricultural Research, Extension, and
    Education Reform Act of 1998 (7 U.S.C. 7626(f)) is amended by striking
    ``2007'' and inserting ``2012''.
    SEC. 7307. FUSARIUM GRAMINEARUM GRANTS.
        Section 408 of the Agricultural Research, Extension, and Education
    Reform Act of 1998 (7 U.S.C. 7628) is amended--
            (1) in subsection (a), in the subsection heading, by striking
        ``Grant'' and inserting ``Grants''; and
            (2) in subsection (e), by striking ``2007'' and inserting
        ``2012''.
    SEC. 7308. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.
        Section 409(b) of the Agricultural Research, Extension, and
    Education Reform Act of 1998 (7 U.S.C. 7629(b)) is amended by striking
    ``2007'' and inserting ``2012''.
    SEC. 7309. GRANTS FOR YOUTH ORGANIZATIONS.
        Section 410 of the Agricultural Research, Extension, and Education
    Reform Act of 1998 (7 U.S.C. 7630) is amended by striking subsections
    (b) and (c) and inserting the following:
        ``(b) Flexibility.--The Secretary shall provide maximum flexibility
    in content delivery to each organization receiving funds under this
    section so as to ensure that the unique goals of each organization, as
    well as the local community needs, are fully met.
        ``(c) Redistribution of Funding Within Organizations Authorized.--
    Recipients of funds under this section may redistribute all or part of
    the funds received to individual councils or local chapters within the
    councils without further need of approval from the Secretary.
        ``(d) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as are necessary for
    each of fiscal years 2008 through 2012.''.
    SEC. 7310. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND DEVELOPMENT FOR
    DEVELOPING COUNTRIES.
        Section 411(c) of the Agricultural Research, Extension, and
    Education Reform Act of 1998 (7 U.S.C. 7631(c)) is amended by striking
    ``2007'' and inserting ``2012''.
    SEC. 7311. SPECIALTY CROP RESEARCH INITIATIVE.
        (a) In General.--Title IV of the Agricultural Research, Extension,
    and Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) is amended by
    adding at the end the following:
        ``SEC. 412. SPECIALTY CROP RESEARCH INITIATIVE.
        ``(a) Definitions.--In this section:
            ``(1) Initiative.--The term `Initiative' means the specialty
        crop research and extension initiative established by subsection
        (b).
            ``(2) Specialty crop.--The term `specialty crop' has the
        meaning given that term in section 3 of the Specialty Crops
        Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108-
        465).
        ``(b) Establishment.--There is established within the Department a
    specialty crop research and extension initiative to address the
    critical needs of the specialty crop industry by developing and
    disseminating science-based tools to address needs of specific crops
    and their regions, including--
            ``(1) research in plant breeding, genetics, and genomics to
        improve crop characteristics, such as--
                ``(A) product, taste, quality, and appearance;
                ``(B) environmental responses and tolerances;
                ``(C) nutrient management, including plant nutrient uptake
            efficiency;
                ``(D) pest and disease management, including resistance to
            pests and diseases resulting in reduced application management
            strategies; and
                ``(E) enhanced phytonutrient content;
            ``(2) efforts to identify and address threats from pests and
        diseases, including threats to specialty crop pollinators;
            ``(3) efforts to improve production efficiency, productivity,
        and profitability over the long term (including specialty crop
        policy and marketing);
            ``(4) new innovations and technology, including improved
        mechanization and technologies that delay or inhibit ripening; and
            ``(5) methods to prevent, detect, monitor, control, and respond
        to potential food safety hazards in the production and processing
        of specialty crops, including fresh produce.
        ``(c) Eligible Entities.--The Secretary may carry out the
    Initiative through--
            ``(1) Federal agencies;
            ``(2) national laboratories;
            ``(3) colleges and universities;
            ``(4) research institutions and organizations;
            ``(5) private organizations or corporations;
            ``(6) State agricultural experiment stations;
            ``(7) individuals; or
            ``(8) groups consisting of 2 or more entities described in
        paragraphs (1) through (7).
        ``(d) Research Projects.--In carrying out this section, the
    Secretary shall award grants on a competitive basis.
        ``(e) Administration.--
            ``(1) In general.--With respect to grants awarded under
        subsection (d), the Secretary shall--
                ``(A) seek and accept proposals for grants;
                ``(B) determine the relevance and merit of proposals
            through a system of peer and merit review in accordance with
            section 103; and
                ``(C) award grants on the basis of merit, quality, and
            relevance.
            ``(2) Term.--The term of a grant under this section may not
        exceed 10 years.
            ``(3) Matching funds required.--The Secretary shall require the
        recipient of a grant under this section to provide funds or in-kind
        support from non-Federal sources in an amount that is at least
        equal to the amount provided by the Federal Government.
            ``(4) Other conditions.--The Secretary may set such other
        conditions on the award of a grant under this section as the
        Secretary determines to be appropriate.
        ``(f) Priorities.--In making grants under this section, the
    Secretary shall provide a higher priority to projects that--
            ``(1) are multistate, multi-institutional, or
        multidisciplinary; and
            ``(2) include explicit mechanisms to communicate results to
        producers and the public.
        ``(g) Buildings and Facilities.--Funds made available under this
    section shall not be used for the construction of a new building or
    facility or the acquisition, expansion, remodeling, or alteration of an
    existing building or facility (including site grading and improvement,
    and architect fees).
        ``(h) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit
        Corporation, the Secretary shall make available to carry out this
        section $30,000,000 for fiscal year 2008 and $50,000,000 for each
        of fiscal years 2009 through 2012, from which activities under each
        of paragraphs (1) through (5) of subsection (b) shall be allocated
        not less than 10 percent.
            ``(2) Authorization of appropriations.--In addition to funds
        made available under paragraph (1), there is authorized to be
        appropriated to carry out this section $100,000,000 for each of
        fiscal years 2008 through 2012.
            ``(3) Transfer.--Of the funds made available to the Secretary
        under paragraph (1) for fiscal year 2008 and authorized for use for
        payment of administrative expenses under section 1469(a)(3) of the
        National Agricultural Research, Extension, and Teaching Policy Act
        of 1977 (7 U.S.C. 3315(a)(3)), the Secretary shall transfer, upon
        the date of enactment of this section, $200,000 to the Office of
        Prevention, Pesticides, and Toxic Substances of the Environmental
        Protection Agency for use in conducting a meta-analysis relating to
        methyl bromide.
            ``(4) Availability.--Funds made available pursuant to this
        subsection for a fiscal year shall remain available until expended
        to pay for obligations incurred in that fiscal year.''.
        (b) Coordination.--In carrying out the amendment made by this
    section, the Secretary shall ensure that the Division Chief of the
    applicable Research, Education, and Extension Office established under
    section 251 of the Department of Agriculture Reorganization Act of 1994
    (7 U.S.C. 6971) coordinates projects and activities under this section
    to ensure, to the maximum extent practicable, that unnecessary
    duplication of effort is eliminated or minimized.
    SEC. 7312. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE PROGRAM.
        Section 604 of the Agricultural Research, Extension, and Education
    Reform Act of 1998 (7 U.S.C. 7642) is amended by adding at the end the
    following:
        ``(e) Authorization of Appropriations.--In addition to any other
    funds available to carry out subsection (c), there is authorized to be
    appropriated to carry out this section $2,500,000 for each of fiscal
    years 2008 through 2012.''.
    SEC. 7313. OFFICE OF PEST MANAGEMENT POLICY.
        Section 614(f) of the Agricultural Research, Extension, and
    Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended by striking
    ``2007'' and inserting ``2012''.

                             Subtitle D--Other Laws

    SEC. 7401. CRITICAL AGRICULTURAL MATERIALS ACT.
        Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C.
    178n(a)) is amended by striking ``2007'' and inserting ``2012''.
    SEC. 7402. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.
        (a) Definition of 1994 Institutions.--Section 532 of the Equity in
    Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public
    Law 103-382) is amended by adding at the end the following:
            ``(34) Ilisagvik College.''.
        (b) Endowment for 1994 Institutions.--Section 533 of the Equity in
    Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public
    Law 103-382) is amended--
            (1) in subsection (a)(3), in the matter preceding subparagraph
        (A), by inserting ``this section and'' before ``sections 534,'';
        and
            (2) in the first sentence of subsection (b), by striking
        ``2007'' and inserting ``2012''.
        (c) Redistribution.--Section 534(a)(3) of the Equity in Educational
    Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103-382)
    is amended--
            (1) by striking ``The amounts'' and inserting the following:
                ``(A) In general.--Except as provided in subparagraph (B),
            the amounts''; and
            (2) by adding at the end the following:
                ``(B) Redistribution.--Funds that would be paid to a 1994
            Institution under paragraph (2) shall be withheld from that
            1994 Institution and redistributed among the other 1994
            Institutions if that 1994 Institution--
                    ``(i) declines to accept funds under paragraph (2); or
                    ``(ii) fails to meet the accreditation requirements
                under section 533(a)(3).''.
        (d) Institutional Capacity Building Grants.--Section 535 of the
    Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note;
    Public Law 103-382) is amended by striking ``2007'' each place it
    appears and inserting ``2012''.
        (e) Research Grants.--Section 536(c) of the Equity in Educational
    Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103-382)
    is amended in the first sentence by striking ``2007'' and inserting
    ``2012''.
        (f) Effective Date.--The amendment made by subsection (a) takes
    effect on October 1, 2008.
    SEC. 7403. SMITH-LEVER ACT.
        (a) Program.--Section 3(d) of the Smith-Lever Act (7 U.S.C. 343(d))
    is amended in the second sentence by striking ``apply for and receive''
    and all that follows through paragraph (2) and inserting ``compete for
    and receive funds directly from the Secretary of Agriculture.''.
        (b) Elimination of the Governor's Report Requirement for Extension
    Activities.--Section 5 of the Smith-Lever Act (7 U.S.C. 345) is amended
    by striking the third sentence.
        (c) Conforming Amendment.--Section 1444(a)(2) of the National
    Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
    U.S.C. 3221(a)(2)) is amended by striking ``after September 30, 1995,
    under section 3(d) of that Act (7 U.S.C. 343(d))'' and all that follows
    through the end of the sentence and inserting ``under section 3(d) of
    that Act (7 U.S.C. 343(d)).''.
    SEC. 7404. HATCH ACT OF 1887.
        (a) District of Columbia.--Section 3(d)(4) of the Hatch Act of 1887
    (7 U.S.C. 361c(d)(4)) is amended--
            (1) in the paragraph heading, by inserting ``and the district
        of columbia'' after ``areas'';
            (2) in subparagraph (A)--
                (A) by inserting ``and the District of Columbia'' after
            ``United States''; and
                (B) by inserting ``and the District of Columbia'' after
            ``respectively,''; and
            (3) in subparagraph (B), by inserting ``or the District of
        Columbia'' after ``area''.
        (b) Elimination of Penalty Mail Authorities.--
            (1) In general.--Section 6 of the Hatch Act of 1887 (7 U.S.C.
        361f) is amended in the first sentence by striking ``under penalty
        indicia:'' and all that follows through the end of the sentence and
        inserting a period.
            (2) Conforming amendments in other laws.--
                (A) National agricultural research, extension, and teaching
            policy act of 1977.--
                    (i) Section 1444(f) of the National Agricultural
                Research, Extension, and Teaching Policy Act of 1977 (7
                U.S.C. 3221(f)) is amended by striking ``under penalty
                indicia:'' and all that follows through the end of the
                sentence and inserting a period.
                    (ii) Section 1445(e) of the National Agricultural
                Research, Extension, and Teaching Policy Act of 1977 (7
                U.S.C. 3222(e)) is amended by striking ``under penalty
                indicia:'' and all that follows through the end of the
                sentence and inserting a period.
                (B) Other provisions.--Section 3202(a) of title 39, United
            States Code, is amended--
                    (i) in paragraph (1)--

                        (I) in subparagraph (D), by adding ``and'' at the
                    end;
                        (II) in subparagraph (E), by striking ``sections;
                    and'' and inserting ``sections.''; and
                        (III) by striking subparagraph (F);

                    (ii) in paragraph (2), by adding ``and'' at the end;
                    (iii) in paragraph (3) by striking ``thereof; and'' and
                inserting ``thereof.''; and
                    (iv) by striking paragraph (4).
    SEC. 7405. AGRICULTURAL EXPERIMENT STATION RESEARCH FACILITIES ACT.
        Section 6(a) of the Research Facilities Act (7 U.S.C. 390d(a)) is
    amended by striking ``2007'' and inserting ``2012''.
    SEC. 7406. AGRICULTURE AND FOOD RESEARCH INITIATIVE.
        (a) In General.--Subsection (b) of the Competitive, Special, and
    Facilities Research Grant Act (7 U.S.C. 450i(b)) is amended to read as
    follows:
        ``(b) Agriculture and Food Research Initiative.--
            ``(1) Establishment.--There is established in the Department of
        Agriculture an Agriculture and Food Research Initiative under which
        the Secretary of Agriculture (referred to in this subsection as
        `the Secretary') may make competitive grants for fundamental and
        applied research, extension, and education to address food and
        agricultural sciences (as defined under section 1404 of the
        National Agricultural Research, Extension, and Teaching Policy Act
        of 1977 (7 U.S.C. 3103)).
            ``(2) Priority areas.--The competitive grants program
        established under this subsection shall address the following
        areas:
                ``(A) Plant health and production and plant products.--
            Plant systems, including--
                    ``(i) plant genome structure and function;
                    ``(ii) molecular and cellular genetics and plant
                biotechnology;
                    ``(iii) conventional breeding, including cultivar and
                breed development, selection theory, applied quantitative
                genetics, breeding for improved food quality, breeding for
                improved local adaptation to biotic stress and abiotic
                stress, and participatory breeding;
                    ``(iv) plant-pest interactions and biocontrol systems;
                    ``(v) crop plant response to environmental stresses;
                    ``(vi) unproved nutrient qualities of plant products;
                and
                    ``(vii) new food and industrial uses of plant products.
                ``(B) Animal health and production and animal products.--
            Animal systems, including--
                    ``(i) aquaculture;
                    ``(ii) cellular and molecular basis of animal
                reproduction, growth, disease, and health;
                    ``(iii) animal biotechnology;
                    ``(iv) conventional breeding, including breed
                development, selection theory, applied quantitative
                genetics, breeding for improved food quality, breeding for
                improved local adaptation to biotic stress and abiotic
                stress, and participatory breeding;
                    ``(v) identification of genes responsible for improved
                production traits and resistance to disease;
                    ``(vi) improved nutritional performance of animals;
                    ``(vii) improved nutrient qualities of animal products
                and uses; and
                    ``(viii) the development of new and improved animal
                husbandry and production systems that take into account
                production efficiency, animal well-being, and animal
                systems applicable to aquaculture.
                ``(C) Food safety, nutrition, and health.--Nutrition, food
            safety and quality, and health, including--
                    ``(i) microbial contaminants and pesticides residue
                relating to human health;
                    ``(ii) links between diet and health;
                    ``(iii) bioavailability of nutrients;
                    ``(iv) postharvest physiology and practices; and
                    ``(v) improved processing technologies.
                ``(D) Renewable energy, natural resources, and
            environment.--Natural resources and the environment,
            including--
                    ``(i) fundamental structures and functions of
                ecosystems;
                    ``(ii) biological and physical bases of sustainable
                production systems;
                    ``(iii) minimizing soil and water losses and sustaining
                surface water and ground water quality;
                    ``(iv) global climate effects on agriculture;
                    ``(v) forestry; and
                    ``(vi) biological diversity.
                ``(E) Agriculture systems and technology.--Engineering,
            products, and processes, including--
                    ``(i) new uses and new products from traditional and
                nontraditional crops, animals, byproducts, and natural
                resources;
                    ``(ii) robotics, energy efficiency, computing, and
                expert systems;
                    ``(iii) new hazard and risk assessment and mitigation
                measures; and
                    ``(iv) water quality and management.
                ``(F) Agriculture economics and rural communities.--
            Markets, trade, and policy, including--
                    ``(i) strategies for entering into and being
                competitive in domestic and overseas markets;
                    ``(ii) farm efficiency and profitability, including the
                viability and competitiveness of small and medium-sized
                dairy, livestock, crop and other commodity operations;
                    ``(iii) new decision tools for farm and market systems;
                    ``(iv) choices and applications of technology;
                    ``(v) technology assessment; and
                    ``(vi) new approaches to rural development, including
                rural entrepreneurship.
            ``(3) Term.--The term of a competitive grant made under this
        subsection may not exceed 10 years.
            ``(4) General administration.--In making grants under this
        subsection, the Secretary shall--
                ``(A) seek and accept proposals for grants;
                ``(B) determine the relevance and merit of proposals
            through a system of peer and merit review in accordance with
            section 103 of the Agricultural Research, Extension, and
            Education Reform Act of 1998 (7 U.S.C. 7613);
                ``(C) award grants on the basis of merit, quality, and
            relevance;
                ``(D) solicit and consider input from persons who conduct
            or use agricultural research, extension, or education in
            accordance with section 102(b) of the Agricultural Research,
            Extension, and Education Reform Act of 1998 (7 U.S.C. 7612(b));
            and
                ``(E) in seeking proposals for grants under this subsection
            and in performing peer review evaluations of such proposals,
            seek the widest participation of qualified individuals in the
            Federal Government, colleges and universities, State
            agricultural experiment stations, and the private sector.
            ``(5) Allocation of funds.--In making grants under this
        subsection, the Secretary shall allocate funds to the Agriculture
        and Food Research Initiative to ensure that, of funds allocated for
        research activities--
                ``(A) not less than 60 percent is made available to make
            grants for fundamental research (as defined in subsection
            (f)(1) of section 251 of the Department of Agriculture
            Reorganization Act of 1994 (7 U.S.C. 6971)), of which--
                    ``(i) not less than 30 percent is made available to
                make grants for research to be conducted by
                multidisciplinary teams; and
                    ``(ii) not more than 2 percent is used for equipment
                grants under paragraph (6)(A); and
                ``(B) not less than 40 percent is made available to make
            grants for applied research (as defined in subsection (f)(1) of
            section 251 of the Department of Agriculture Reorganization Act
            of 1994 (7 U.S.C. 6971)).
            ``(6) Special considerations.--In making grants under this
        subsection, the Secretary may assist in the development of
        capabilities in the agricultural, food, and environmental sciences
        by providing grants--
                ``(A) to an institution to allow for the improvement of the
            research, development, technology transfer, and education
            capacity of the institution through the acquisition of special
            research equipment and the improvement of agricultural
            education and teaching, except that the Secretary shall use not
            less than 25 percent of the funds made available for grants
            under this subparagraph to provide fellowships to outstanding
            pre- and post-doctoral students for research in the
            agricultural sciences;
                ``(B) to a single investigator or coinvestigators who are
            beginning research careers and do not have an extensive
            research publication record, except that, to be eligible for a
            grant under this subparagraph, an individual shall be within 5
            years of the beginning of the initial career track position of
            the individual;
                ``(C) to ensure that the faculty of small, mid-sized, and
            minority-serving institutions who have not previously been
            successful in obtaining competitive grants under this
            subsection receive a portion of the grants; and
                ``(D) to improve research, extension, and education
            capabilities in States (as defined in section 1404 of the
            National Agricultural Research, Extension, and Teaching Policy
            Act of 1977 (7 U.S.C. 3103)) in which institutions have been
            less successful in receiving funding under this subsection,
            based on a 3-year rolling average of funding levels.
            ``(7) Eligible entities.--The Secretary may make grants to
        carry out research, extension, and education under this subsection
        to--
                ``(A) State agricultural experiment stations;
                ``(B) colleges and universities;
                ``(C) university research foundations;
                ``(D) other research institutions and organizations;
                ``(E) Federal agencies;
                ``(F) national laboratories;
                ``(G) private organizations or corporations;
                ``(H) individuals; or
                ``(I) any group consisting of 2 or more of the entities
            described in subparagraphs (A) through (H).
            ``(8) Construction prohibited.--Funds made available for grants
        under this subsection shall not be used for the construction of a
        new building or facility or the acquisition, expansion, remodeling,
        or alteration of an existing building or facility (including site
        grading and improvement, and architect fees).
            ``(9) Matching funds.--
                ``(A) Equipment grants.--
                    ``(i) In general.--Except as provided in clause (ii),
                in the case of a grant made under paragraph (6)(A), the
                amount provided under this subsection may not exceed 50
                percent of the cost of the special research equipment or
                other equipment acquired using funds from the grant.
                    ``(ii) Waiver.--The Secretary may waive all or part of
                the matching requirement under clause (i) in the case of a
                college, university, or research foundation maintained by a
                college or university that ranks in the lowest \1/3\ of
                such colleges, universities, and research foundations on
                the basis of Federal research funds received, if the
                equipment to be acquired using funds from the grant costs
                not more than $25,000 and has multiple uses within a single
                research project or is usable in more than 1 research
                project.
                ``(B) Applied research.--As a condition of making a grant
            under paragraph (5)(B), the Secretary shall require the funding
            of the grant to be matched with equal matching funds from a
            non-Federal source if the grant is for applied research that
            is--
                    ``(i) commodity-specific; and
                    ``(ii) not of national scope.
            ``(10) Program administration.--To the maximum extent
        practicable, the Director of the National Institute of Food and
        Agriculture, in coordination with the Under Secretary for Research,
        Education, and Economics, shall allocate grants under this
        subsection to high-priority research, taking into consideration,
        when available, the determinations made by the National
        Agricultural Research, Extension, Education, and Economics Advisory
        Board (as established under section 1408 of the National
        Agricultural Research, Extension, and Teaching Policy Act of 1977
        (7 U.S.C. 3123)).
            ``(11) Authorization of appropriations.--
                ``(A) In general.--There is authorized to be appropriated
            to carry out this subsection $700,000,000 for each of fiscal
            years 2008 through 2012, of which--
                    ``(i) not less than 30 percent shall be made available
                for integrated research pursuant to section 406 of the
                Agricultural Research, Extension, and Education Reform Act
                of 1998 (7 U.S.C. 7626); and
                    ``(ii) not more than 4 percent may be retained by the
                Secretary to pay administrative costs incurred by the
                Secretary in carrying out this subsection.
                ``(B) Availability.--Funds made available under this
            paragraph shall--
                    ``(i) be available for obligation for a 2-year period
                beginning on October 1 of the fiscal year for which the
                funds are first made available; and
                    ``(ii) remain available until expended to pay for
                obligations incurred during that 2-year period.''.
        (b) Repeals.--
            (1) Section 401 of the Agricultural Research, Extension, and
        Education Reform Act of 1998 (7 U.S.C. 7621) is repealed.
            (2) Subsection (d) of the Competitive, Special, and Facilities
        Research Grant Act (7 U.S.C. 450i(d)) is repealed.
        (c) Effect on Current Solicitations.--The amendments made by this
    section shall not apply to any solicitation for grant applications
    issued by the Cooperative State Research, Education, and Extension
    Service before the date of enactment of this Act.
        (d) Conforming Amendments.--
            (1) Section 1473 of the National Agricultural Research,
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319) is
        amended in the first sentence by striking ``and subsection (d)''.
            (2) Section 1671(d) of the Food, Agriculture, Conservation, and
        Trade Act of 1990 (7 U.S.C. 5924(d) is amended by striking
        ``Paragraphs (1), (6), (7), and (11)'' and inserting ``Paragraphs
        (4), (7), (8), and (11)(B)''.
            (3) Section 1672B(b) of the Food, Agriculture, Conservation,
        and Trade Act of 1990 (7 U.S.C. 5925b(b)) is amended by striking
        ``Paragraphs (1), (6), (7), and (11)'' and inserting ``Paragraphs
        (4), (7), (8), and (11)(B)''.
    SEC. 7407. AGRICULTURAL RISK PROTECTION ACT OF 2000.
        Section 221 of the Agricultural Risk Protection Act of 2000 (7
    U.S.C. 6711(g)) is amended by striking subsection (g) and inserting the
    following:
        ``(g) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $15,000,000 for each of fiscal
    years 2007 through 2012.''.
    SEC. 7408. EXCHANGE OR SALE AUTHORITY.
        Title III of the Department of Agriculture Reorganization Act of
    1994 (Public Law 103-354; 108 Stat. 3238) is amended by adding at the
    end the following:
        ``SEC. 307. EXCHANGE OR SALE AUTHORITY.
        ``(a) Definition of Qualified Item of Personal Property.--In this
    section, the term `qualified item of personal property' means--
            ``(1) an animal;
            ``(2) an animal product;
            ``(3) a plant; or
            ``(4) a plant product.
        ``(b) General Authority.--Except as provided in subsection (c),
    notwithstanding chapter 5 of subtitle I of title 40, United States
    Code, the Secretary, acting through the Under Secretary for Research,
    Education, and Economics, in managing personal property for the purpose
    of carrying out the research functions of the Department, may exchange,
    sell, or otherwise dispose of any qualified item of personal property,
    including by way of public auction, and may retain and apply the sale
    or other proceeds, without further appropriation and without fiscal
    year limitation, in whole or in partial payment--
            ``(1) to acquire any qualified item of personal property; or
            ``(2) to offset costs related to the maintenance, care, or
        feeding of any qualified item of personal property.
        ``(c) Exception.--Subsection (b) does not apply to the free
    dissemination of new varieties of seeds and germplasm in accordance
    with section 520 of the Revised Statutes (commonly known as the
    `Department of Agriculture Organic Act') (7 U.S.C. 2201).''.
    SEC. 7409. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.
        Title III of the Department of Agriculture Reorganization Act of
    1994 (Public Law 103-354; 108 Stat. 3238) (as amended by section 7408)
    is amended by adding at the end the following:
        ``SEC. 308. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.
        ``(a) Establishment.--To enhance the use of real property
    administered by agencies of the Department, the Secretary may establish
    a pilot program, in accordance with this section, at the Beltsville
    Agricultural Research Center of the Agricultural Research Service and
    the National Agricultural Library to lease nonexcess property of the
    Center or the Library to any individual or entity, including agencies
    or instrumentalities of State or local governments.
        ``(b) Requirements.--
            ``(1) In general.--Notwithstanding chapter 5 of subtitle I of
        title 40, United States Code, the Secretary may lease real property
        at the Beltsville Agricultural Research Center or the National
        Agricultural Library in accordance with such terms and conditions
        as the Secretary may prescribe, if the Secretary determines that
        the lease--
                ``(A) is consistent with, and will not adversely affect,
            the mission of the Department agency administering the
            property;
                ``(B) will enhance the use of the property;
                ``(C) will not permit any portion of Department agency
            property or any facility of the Department to be used for the
            public retail or wholesale sale of merchandise or residential
            development;
                ``(D) will not permit the construction or modification of
            facilities financed by non-Federal sources to be used by an
            agency, except for incidental use; and
                ``(E) will not include any property or facility required
            for any Department agency purpose without prior consideration
            of the needs of the agency.
            ``(2) Term.--The term of a lease under this section shall not
        exceed 30 years.
            ``(3) Consideration.--
                ``(A) In general.--Consideration provided for a lease under
            this section shall be--
                    ``(i) in an amount equal to fair market value, as
                determined by the Secretary; and
                    ``(ii) in the form of cash.
                ``(B) Use of funds.--
                    ``(i) In general.--Consideration provided for a lease
                under this section shall be--

                        ``(I) deposited in a capital asset account to be
                    established by the Secretary; and
                        ``(II) available until expended, without further
                    appropriation, for maintenance, capital revitalization,
                    and improvements of the Department properties and
                    facilities at the Beltsville Agricultural Research
                    Center and National Agricultural Library.

                    ``(ii) Budgetary treatment.--For purposes of the
                budget, the amounts described in clause (i) shall not be
                treated as a receipt of any Department agency or any other
                agency leasing property under this section.
            ``(4) Costs.--The lessee shall cover all costs associated with
        a lease under this section, including the cost of--
                ``(A) the project to be carried out on property or at a
            facility covered by the lease;
                ``(B) provision and administration of the lease;
                ``(C) construction of any needed facilities;
                ``(D) provision of applicable utilities; and
                ``(E) any other facility cost normally associated with the
            operation of a leased facility.
            ``(5) Prohibition of use of appropriations.--The Secretary
        shall not use any funds made available to the Secretary in an
        appropriations Act for the construction or operating costs of any
        space covered by a lease under this section.
            ``(6) Termination of authority.--This section and the authority
        provided by this section terminate--
                ``(A) on the date that is 5 years after the date of
            enactment of this section; or
                ``(B) with respect to any particular leased property, on
            the date of termination of the lease.
        ``(c) Effect of Other Laws.--
            ``(1) Utilization.--Property that is leased pursuant to this
        section shall not be considered to be unutilized or underutilized
        for purposes of section 501 of the Stewart B. McKinney Homeless
        Assistance Act (42 U.S.C. 11411).
            ``(2) 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) Administration.--
            ``(1) In general.--Not later than 90 days after the date of
        enactment of this section, the Secretary shall submit to the
        Committee on Agriculture of the House of Representatives and the
        Committee on Agriculture, Nutrition, and Forestry of the Senate a
        report that describes detailed management objectives and
        performance measurements by which the Secretary intends to evaluate
        the success of the program under this section.
            ``(2) Reports.--Not later than 1, 3, and 5 years after the date
        of enactment of this section, the Secretary shall submit to the
        Committee on Agriculture of the House of Representatives and the
        Committee on Agriculture, Nutrition, and Forestry of the Senate a
        report describing the implementation of the program under this
        section, including--
                ``(A) a copy of each lease entered into pursuant to this
            section; and
                ``(B) an assessment by the Secretary of the success of the
            program using the management objectives and performance
            measurements developed by the Secretary.''.
    SEC. 7410. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.
        (a) Grants.--Section 7405(c) of the Farm Security and Rural
    Investment Act of 2002 (7 U.S.C. 3319f(c)) is amended--
            (1) by striking paragraph (3) and inserting the following:
            ``(3) Maximum term and size of grant.--
                ``(A) In general.--A grant under this subsection shall--
                    ``(i) have a term that is not more than 3 years; and
                    ``(ii) be in an amount that is not more than $250,000
                for each year.
                ``(B) Consecutive grants.--An eligible recipient may
            receive consecutive grants under this subsection.'';
            (2) by redesignating paragraphs (5) through (7) as paragraphs
        (8) through (10), respectively;
            (3) by inserting after paragraph (4) the following:
            ``(5) Evaluation criteria.--In making grants under this
        subsection, the Secretary shall evaluate--
                ``(A) relevancy;
                ``(B) technical merit;
                ``(C) achievability;
                ``(D) the expertise and track record of 1 or more
            applicants;
                ``(E) the adequacy of plans for the participatory
            evaluation process, outcome-based reporting, and the
            communication of findings and results beyond the immediate
            target audience; and
                ``(F) other appropriate factors, as determined by the
            Secretary.
            ``(6) Regional balance.--In making grants under this
        subsection, the Secretary shall, to the maximum extent practicable,
        ensure geographical diversity.
            ``(7) Priority.--In making grants under this subsection, the
        Secretary shall give priority to partnerships and collaborations
        that are led by or include nongovernmental and community-based
        organizations with expertise in new agricultural producer training
        and outreach.''.
        (b) Funding.--Section 7405 of the Farm Security and Rural
    Investment Act of 2002 (7 U.S.C. 3319f) is amended by striking
    subsection (h) and inserting the following:
        ``(h) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit
        Corporation, the Secretary shall make available to carry out this
        section--
                ``(A) $18,000,000 for fiscal year 2009; and
                ``(B) $19,000,000 for each of fiscal years 2010 through
            2012.
            ``(2) Authorization of appropriations.--In addition to funds
        provided under paragraph (1), there is authorized to be
        appropriated to carry out this section $30,000,000 for each of
        fiscal years 2008 through 2012.''.
    SEC. 7411. PUBLIC EDUCATION REGARDING USE OF BIOTECHNOLOGY IN PRODUCING
    FOOD FOR HUMAN CONSUMPTION.
        Section 10802 of the Farm Security and Rural Investment Act of 2002
    (7 U.S.C. 5921a) is repealed.
    SEC. 7412. MCINTIRE-STENNIS COOPERATIVE FORESTRY ACT.
        (a) In General.--Section 2 of Public Law 87-788 (commonly known as
    the ``McIntire-Stennis Cooperative Forestry Act'') (16 U.S.C. 582a-1)
    is amended by inserting ``and 1890 Institutions (as defined in section
    2 of the Agricultural Research, Extension, and Education Reform Act of
    1998 (7 U.S.C. 7601)),'' before ``and (b)''.
        (b) Effective Date.--The amendment made by subsection (a) takes
    effect on October 1, 2008.
    SEC. 7413. RENEWABLE RESOURCES EXTENSION ACT OF 1978.
        (a) Authorization of Appropriations.--Section 6 of the Renewable
    Resources Extension Act of 1978 (16 U.S.C. 1675) is amended in the
    first sentence by striking ``2007'' and inserting ``2012''.
        (b) Termination Date.--Section 8 of the Renewable Resources
    Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95-306) is
    amended by striking ``2007'' and inserting ``2012''.
    SEC. 7414. NATIONAL AQUACULTURE ACT OF 1980.
        Section 10 of the National Aquaculture Act of 1980 (16 U.S.C. 2809)
    is amended by striking ``2007'' each place it appears and inserting
    ``2012''.
    SEC. 7415. CONSTRUCTION OF CHINESE GARDEN AT THE NATIONAL ARBORETUM.
        The Act of March 4, 1927 (20 U.S.C. 191 et seq.), is amended by
    adding at the end the following:
    ``SEC. 7. CONSTRUCTION OF CHINESE GARDEN AT THE NATIONAL ARBORETUM.
        ``A Chinese Garden may be constructed at the National Arboretum
    established under this Act with--
            ``(1) funds accepted under section 5;
            ``(2) authorities provided to the Secretary of Agriculture
        under section 6; and
            ``(3) appropriations provided for this purpose.''.
    SEC. 7416. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING
    POLICY ACT AMENDMENTS OF 1985.
        Section 1431 of the National Agricultural Research, Extension, and
    Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat.
    1556) is amended by striking ``2007'' and inserting ``2012''.
    SEC. 7417. ELIGIBILITY OF UNIVERSITY OF THE DISTRICT OF COLUMBIA FOR
    CERTAIN LAND-GRANT UNIVERSITY ASSISTANCE.
        (a) In General.--Section 208 of the District of Columbia Public
    Postsecondary Education Reorganization Act (Public Law 93-471; 88 Stat.
    1428) is amended--
            (1) in subsection (b)(2), by striking ``, except'' and all that
        follows through the period and inserting a period; and
            (2) in subsection (c)--
                (A) by striking ``section 3'' each place it appears and
            inserting ``section 3(c)''; and
                (B) by striking ``Such sums may be used to pay'' and all
            that follows through ``work.''.
        (b) Effective Date.--The amendments made by this section take
    effect on October 1, 2008.

                           Subtitle E--Miscellaneous

                           PART I--GENERAL PROVISIONS

    SEC. 7501. DEFINITIONS.
        Except as otherwise provided in this subtitle, in this subtitle:
            (1) Capacity and infrastructure program.--The term ``capacity
        and infrastructure program'' has the meaning given the term in
        subsection (f)(1) of section 251 of the Department of Agriculture
        Reorganization Act of 1994 (7 U.S.C. 6971) (as added by section
        7511(a)(4)).
            (2) Capacity and infrastructure program critical base
        funding.--The term ``capacity and infrastructure program critical
        base funding'' means the aggregate amount of Federal funds made
        available for capacity and infrastructure programs for fiscal year
        2006, as appropriate.
            (3) Competitive program.--The term ``competitive program'' has
        the meaning given the term in subsection (f)(1) of section 251 of
        the Department of Agriculture Reorganization Act of 1994 (7 U.S.C.
        6971) (as added by section 7511(a)(4)).
            (4) Competitive program critical base funding.--The term
        ``competitive program critical base funding'' means the aggregate
        amount of Federal funds made available for competitive programs for
        fiscal year 2006, as appropriate.
            (5) Hispanic-serving agricultural colleges and universities.--
        The term ``Hispanic-serving agricultural colleges and
        universities'' has the meaning given the term in section 1404 of
        the National Agricultural Research, Extension, and Teaching Policy
        Act of 1977 (7 U.S.C. 3103).
            (6) NLGCA institution.--The term ``NLGCA Institution'' has the
        meaning given the term in section 1404 of the National Agricultural
        Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
        3103).
            (7) 1862 institution; 1890 institution; 1994 institution.--The
        terms ``1862 Institution'', ``1890 Institution'', and ``1994
        Institution'' have the meanings given the terms in section 2 of the
        Agricultural Research, Extension, and Education Reform Act of 1998
        (7 U.S.C. 7601).
    SEC. 7502. GRAZINGLANDS RESEARCH LABORATORY.
        Except as otherwise specifically authorized by law and
    notwithstanding any other provision of law, the Federal land and
    facilities at El Reno, Oklahoma, administered by the Secretary (as of
    the date of enactment of this Act) as the Grazinglands Research
    Laboratory, shall not at any time, in whole or in part, be declared to
    be excess or surplus Federal property under chapter 5 of subtitle I of
    title 40, United States Code, or otherwise be conveyed or transferred
    in whole or in part, for the 5-year period beginning on the date of
    enactment of this Act.
    SEC. 7503. FORT RENO SCIENCE PARK RESEARCH FACILITY.
        The Secretary may lease land to the University of Oklahoma at the
    Grazinglands Research Laboratory at El Reno, Oklahoma, on such terms
    and conditions as the University and the Secretary may agree in
    furtherance of cooperative research and existing easement arrangements.
    SEC. 7504. ROADMAP.
        (a) In General.--Not later than 90 days after the date of enactment
    of this Act, the Secretary, acting through the Under Secretary of
    Research, Education, and Economics (referred to in this section as the
    ``Under Secretary''), shall commence preparation of a roadmap for
    agricultural research, education, and extension that--
            (1) identifies current trends and constraints;
            (2) identifies major opportunities and gaps that no single
        entity within the Department of Agriculture would be able to
        address individually;
            (3) involves--
                (A) interested parties from the Federal Government and
            nongovernmental entities; and
                (B) the National Agricultural Research, Extension,
            Education, and Economics Advisory Board established under
            section 1408 of the National Agricultural Research, Extension,
            and Teaching Policy Act of 1977 (7 U.S.C. 3123);
            (4) incorporates roadmaps for agricultural research, education,
        and extension made publicly available by other Federal entities,
        agencies, or offices; and
            (5) describes recommended funding levels for areas of
        agricultural research, education, and extension, including--
                (A) competitive programs;
                (B) capacity and infrastructure programs, with attention to
            the future growth needs of--
                    (i) small 1862 Institutions, 1890 Institutions, and
                1994 Institutions;
                    (ii) Hispanic-serving agricultural colleges and
                universities;
                    (iii) NLGCA Institutions; and
                    (iv) colleges of veterinary medicine; and
                (C) intramural programs at agencies within the research,
            education, and economics mission area; and
            (6) describes how organizational changes enacted by this Act
        have impacted agricultural research, extension, and education
        across the Department of Agriculture, including minimization of
        unnecessary programmatic and administrative duplication.
        (b) Reviewability.--The roadmap described in this section shall not
    be subject to review by any officer or employee of the Federal
    Government other than the Secretary (or a designee of the Secretary).
        (c) Roadmap Implementation and Report.--Not later than 1 year after
    the date on which the Secretary commences preparation of the roadmap
    under this section, the Secretary shall--
            (1) implement and use the roadmap to set the research,
        education, and extension agenda of the Department of Agriculture;
        and
            (2) make the roadmap available to the public.
    SEC. 7505. REVIEW OF PLAN OF WORK REQUIREMENTS.
        (a) Review.--The Secretary shall work with university partners in
    extension and research to review and identify measures to streamline
    the submission, reporting under, and implementation of plan of work
    requirements, including those requirements under--
            (1) sections 1444(d) and 1445(c) of the National Agricultural
        Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
        3221(d) and 3222(c), respectively);
            (2) section 7 of the Hatch Act of 1887 (7 U.S.C. 361g); and
            (3) section 4 of the Smith-Lever Act (7 U.S.C. 344).
        (b) Consultation.--In carrying out the review and formulating and
    compiling the recommendations, the Secretary shall consult with the
    land-grant institutions.
    SEC. 7506. BUDGET SUBMISSION AND FUNDING.
        (a) Definition of Competitive Programs.--In this section, the term
    ``competitive programs'' includes only competitive programs for which
    annual appropriations are requested in the annual budget submission of
    the President.
        (b) Budget Request.--The President shall submit to Congress,
    together with the annual budget submission of the President, a single
    budget line item reflecting the total amount requested by the President
    for funding for research, education, and extension activities of the
    Research, Education, and Economics mission area of the Department for
    that fiscal year and for the preceding 5 fiscal years.
        (c) Capacity and Infrastructure Program Request.--Of the funds
    requested for capacity and infrastructure programs in excess of the
    capacity and infrastructure program critical base funding level,
    budgetary emphasis should be placed on enhancing funding for--
            (1) 1890 Institutions;
            (2) 1994 Institutions;
            (3) NLGCA Institutions;
            (4) Hispanic-serving agricultural colleges and universities;
        and
            (5) small 1862 Institutions.
        (d) Competitive Program Request.--Of the funds requested for
    competitive programs in excess of the competitive program critical base
    funding level, budgetary emphasis should be placed on--
            (1) enhancing funding for emerging problems; and
            (2) finding solutions for those problems.

                  PART II--RESEARCH, EDUCATION, AND ECONOMICS

    SEC. 7511. RESEARCH, EDUCATION, AND ECONOMICS.
        (a) In General.--Section 251 of the Department of Agriculture
    Reorganization Act of 1994 (7 U.S.C. 6971) is amended--
            (1) in subsection (a), by inserting ``(referred to in this
        section as the `Under Secretary')'' before the period at the end;
            (2) by striking subsections (b) through (d);
            (3) by redesignating subsection (e) as subsection (g); and
            (4) by inserting after subsection (a) the following:
        ``(b) Confirmation Required.--The Under Secretary shall be
    appointed by the President, by and with the advice and consent of the
    Senate, from among distinguished scientists with specialized training
    or significant experience in agricultural research, education, and
    economics.
        ``(c) Chief Scientist.--The Under Secretary shall--
            ``(1) hold the title of Chief Scientist of the Department; and
            ``(2) be responsible for the coordination of the research,
        education, and extension activities of the Department.
        ``(d) Functions of Under Secretary.--
            ``(1) Principal function.--The Secretary shall delegate to the
        Under Secretary those functions and duties under the jurisdiction
        of the Department that relate to research, education, and
        economics.
            ``(2) Specific functions and duties.--The Under Secretary
        shall--
                ``(A) identify, address, and prioritize current and
            emerging agricultural research, education, and extension needs
            (including funding);
                ``(B) ensure that agricultural research, education, and
            extension programs are effectively coordinated and integrated--
                    ``(i) across disciplines, agencies, and institutions;
                and
                    ``(ii) among applicable participants, grantees, and
                beneficiaries;
                ``(C) promote the collaborative use of all agricultural
            research, education, and extension resources from the local,
            State, tribal, regional, national, and international levels to
            address priority needs; and
                ``(D) foster communication among agricultural research,
            education, and extension beneficiaries, including the public,
            to ensure the delivery of agricultural research, education, and
            extension knowledge.
            ``(3) Additional functions.--The Under Secretary shall perform
        such other functions and duties as may be required by law or
        prescribed by the Secretary.
        ``(e) Research, Education, and Extension Office.--
            ``(1) Establishment.--The Under Secretary shall organize within
        the office of the Under Secretary 6 Divisions, to be known
        collectively as the `Research, Education, and Extension Office',
        which shall coordinate the research programs and activities of the
        Department.
            ``(2) Division designations.--The Divisions within the
        Research, Education, and Extension Office shall be as follows:
                ``(A) Renewable energy, natural resources, and environment.
                ``(B) Food safety, nutrition, and health.
                ``(C) Plant health and production and plant products.
                ``(D) Animal health and production and animal products.
                ``(E) Agricultural systems and technology.
                ``(F) Agricultural economics and rural communities.
            ``(3) Division chiefs.--
                ``(A) Selection.--The Under Secretary shall select a
            Division Chief for each Division using available personnel
            authority under title 5, United States Code, including--
                    ``(i) by term, temporary, or other appointment, without
                regard to--

                        ``(I) the provisions of title 5, United States
                    Code, governing appointments in the competitive
                    service;
                        ``(II) the provisions of subchapter I of chapter 35
                    of title 5, United States Code, relating to retention
                    preference; and
                        ``(III) the provisions of chapter 51 and subchapter
                    III of chapter 53 of title 5, United States Code,
                    relating to classification and General Schedule pay
                    rates;

                    ``(ii) by detail, notwithstanding any Act making
                appropriations for the Department of Agriculture, whether
                enacted before, on, or after the date of enactment of this
                paragraph, requiring reimbursement for those details unless
                the appropriation Act specifically refers to this
                subsection and specifically includes these details;
                    ``(iii) by reassignment or transfer from any other
                civil service position; and
                    ``(iv) by an assignment under subchapter VI of chapter
                33 of title 5, United States Code.
                ``(B) Selection guidelines.--To the maximum extent
            practicable, the Under Secretary shall select Division Chiefs
            under subparagraph (A) in a manner that--
                    ``(i) promotes leadership and professional development;
                    ``(ii) enables personnel to interact with other
                agencies of the Department; and
                    ``(iii) maximizes the ability of the Under Secretary to
                allow for rotations of Department personnel into the
                position of Division Chief.
                ``(C) Term of service.--Notwithstanding title 5, United
            States Code, the maximum length of service for an individual
            selected as a Division Chief under subparagraph (A) shall not
            exceed 4 years.
                ``(D) Qualifications.--To be eligible for selection as a
            Division Chief, an individual shall have--
                    ``(i) conducted exemplary research, education, or
                extension in the field of agriculture or forestry; and
                    ``(ii) earned an advanced degree at an institution of
                higher education (as defined in section 101 of the Higher
                Education Act of 1965 (20 U.S.C. 1001)).
                ``(E) Duties of division chiefs.--Except as otherwise
            provided in this Act, each Division Chief shall--
                    ``(i) assist the Under Secretary in identifying and
                addressing emerging agricultural research, education, and
                extension needs;
                    ``(ii) assist the Under Secretary in identifying and
                prioritizing Department-wide agricultural research,
                education, and extension needs, including funding;
                    ``(iii) assess the strategic workforce needs of the
                research, education, and extension functions of the
                Department, and develop strategic workforce plans to ensure
                that existing and future workforce needs are met;
                    ``(iv) communicate with research, education, and
                extension beneficiaries, including the public, and
                representatives of the research, education, and extension
                system, including the National Agricultural Research,
                Extension, Education, and Economics Advisory Board, to
                promote the benefits of agricultural research, education,
                and extension;
                    ``(v) assist the Under Secretary in preparing and
                implementing the roadmap for agricultural research,
                education, and extension, as described in section 7504 of
                the Food, Conservation, and Energy Act of 2008; and
                    ``(vi) perform such other duties as the Under Secretary
                may determine.
            ``(4) General administration.--
                ``(A) Funding.--Notwithstanding any Act making
            appropriations for the Department of Agriculture, whether
            enacted before, on, or after the date of enactment of this
            paragraph unless the appropriation Act specifically refers to
            this subsection and specifically includes the administration of
            funds under this section, the Secretary may transfer funds made
            available to an agency in the research, education, and
            economics mission area to fund the costs of Division personnel.
                ``(B) Limitation.--To the maximum extent practicable--
                    ``(i) the Under Secretary shall minimize the number of
                full-time equivalent positions in the Divisions; and
                    ``(ii) at no time shall the aggregate number of staff
                for all Divisions exceed 30 full-time equivalent positions.
                ``(C) Rotation of personnel.--To the maximum extent
            practicable, and using the authority described in paragraph
            (3)(A), the Under Secretary shall rotate personnel among the
            Divisions, and between the Divisions and agencies of the
            Department, in a manner that--
                    ``(i) promotes leadership and professional development;
                and
                    ``(ii) enables personnel to interact with other
                agencies of the Department.
            ``(5) Organization.--The Under Secretary shall integrate
        leadership functions of the national program staff of the research
        agencies into the Research, Education and Extension Office in such
        form as is required to ensure that administrative duplication does
        not occur.
        ``(f) National Institute of Food and Agriculture.--
            ``(1) Definitions.--In this subsection:
                ``(A) Advisory board.--The term `Advisory Board' means the
            National Agricultural Research, Extension, Education, and
            Economics Advisory Board established under section 1408 of the
            National Agricultural Research, Extension, and Teaching Policy
            Act of 1977 (7 U.S.C. 3123).
                ``(B) Applied research.--The term `applied research' means
            research that includes expansion of the findings of fundamental
            research to uncover practical ways in which new knowledge can
            be advanced to benefit individuals and society.
                ``(C) Capacity and infrastructure program.--The term
            `capacity and infrastructure program' means each of the
            following agricultural research, extension, education, and
            related programs for which the Secretary has administrative or
            other authority as of the day before the date of enactment of
            the Food, Conservation, and Energy Act of 2008:
                    ``(i) Each program providing funding to any of the 1994
                Institutions under sections 533, 534(a), and 535 of the
                Equity in Educational Land-Grant Status Act of 1994 (7
                U.S.C. 301 note; Public Law 103-382).
                    ``(ii) The program established under section 536 of the
                Equity in Educational Land-Grant Status Act of 1994 (7
                U.S.C. 301 note; Public Law 103-382) providing research
                grants for 1994 Institutions.
                    ``(iii) Each program established under subsections (b)
                and (c) of section 3 of the Smith-Lever Act (7 U.S.C. 343).
                    ``(iv) Each program established under the Hatch Act of
                1887 (7 U.S.C. 361a et seq.).
                    ``(v) Each program established under section 1417(b) of
                the National Agricultural Research, Extension, and Teaching
                Policy Act of 1977 (7 U.S.C. 3152(b)).
                    ``(vi) The animal health and disease research program
                established under subtitle E of the National Agricultural
                Research, Extension, and Teaching Policy Act of 1977 (7
                U.S.C. 3191 et seq.).
                    ``(vii) Each extension program available to 1890
                Institutions established under section 1444 of the National
                Agricultural Research, Extension, and Teaching Policy Act
                of 1977 (7 U.S.C. 3221).
                    ``(viii) The program established under section 1445 of
                the National Agricultural Research, Extension, and Teaching
                Policy Act of 1977 (7 U.S.C. 3222).
                    ``(ix) The program providing grants to upgrade
                agricultural and food sciences facilities at 1890
                Institutions established under section 1447 of the National
                Agricultural Research, Extension, and Teaching Policy Act
                of 1977 (7 U.S.C. 3222b).
                    ``(x) The program providing distance education grants
                for insular areas established under section 1490 of the
                National Agricultural Research, Extension, and Teaching
                Policy Act of 1977 (7 U.S.C. 3362).
                    ``(xi) The program providing resident instruction
                grants for insular areas established under section 1491 of
                the National Agricultural Research, Extension, and Teaching
                Policy Act of 1977 (7 U.S.C. 3363).
                    ``(xii) Each research and development and related
                program established under Public Law 87-788 (commonly known
                as the `McIntire-Stennis Cooperative Forestry Act') (16
                U.S.C. 582a et seq.).
                    ``(xiii) Each program established under the Renewable
                Resources Extension Act of 1978 (16 U.S.C. 1671 et seq.).
                    ``(xiv) Each program providing funding to Hispanic-
                serving agricultural colleges and universities under
                section 1456 of the National Agricultural Research,
                Extension, and Teaching Policy Act of 1977.
                    ``(xv) The program providing capacity grants to NLGCA
                Institutions under section 1473F of the National
                Agricultural Research, Extension, and Teaching Policy Act
                of 1977.
                    ``(xvi) Other programs that are capacity and
                infrastructure programs, as determined by the Secretary.
                ``(D) Competitive program.--The term `competitive program'
            means each of the following agricultural research, extension,
            education, and related programs for which the Secretary has
            administrative or other authority as of the day before the date
            of enactment of the Food, Conservation, and Energy Act of 2008:
                    ``(i) The Agriculture and Food Research Initiative
                established under section 2(b) of the Competitive, Special,
                and Facilities Research Grant Act (7 U.S.C. 450i(b)).
                    ``(ii) The program providing competitive grants for
                risk management education established under section
                524(a)(3) of the Federal Crop Insurance Act (7 U.S.C.
                1524(a)(3)).
                    ``(iii) The program providing community food project
                competitive grants established under section 25 of the Food
                and Nutrition Act of 2008 (7 U.S.C. 2034).
                    ``(iv) The program providing grants for beginning
                farmer and rancher development established under section
                7405 of the Farm Security and Rural Investment Act of 2002
                (7 U.S.C. 3319f).
                    ``(v) The program providing grants under section
                1417(j) of the National Agricultural Research, Extension,
                and Teaching Policy Act of 1977 (7 U.S.C. 3152(j)).
                    ``(vi) The program providing grants for Hispanic-
                serving institutions established under section 1455 of the
                National Agricultural Research, Extension, and Teaching
                Policy Act of 1977 (7 U.S.C. 3241).
                    ``(vii) The program providing competitive grants for
                international agricultural science and education programs
                under section 1459A of the National Agricultural Research,
                Extension, and Teaching Policy Act of 1977 (7 U.S.C.
                3292b).
                    ``(viii) The research and extension projects carried
                out under section 1621 of the Food, Agriculture,
                Conservation, and Trade Act of 1990 (7 U.S.C. 5811).
                    ``(ix) The organic agriculture research and extension
                initiative established under section 1672B of the Food,
                Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
                5925b).
                    ``(x) The specialty crop research initiative under
                section 412 of the Agricultural Research, Extension, and
                Education Reform Act of 1998.
                    ``(xi) The administration and management of the
                Agricultural Bioenergy Feedstock and Energy Efficiency
                Research and Extension Initiative carried out under section
                1672C of the Food, Agriculture, Conservation, and Trade Act
                of 1990.
                    ``(xii) The research, extension, and education programs
                authorized by section 407 of the Agricultural Research,
                Extension, and Education Reform Act of 1998 (7 U.S.C. 7627)
                relating to the competitiveness, viability and
                sustainability of small- and medium-sized dairy, livestock,
                and poultry operations.
                    ``(xiii) Other programs that are competitive programs,
                as determined by the Secretary.
                ``(E) Director.--The term `Director' means the Director of
            the Institute.
                ``(F) Fundamental research.--The term `fundamental
            research' means research that--
                    ``(i) increases knowledge or understanding of the
                fundamental aspects of phenomena and has the potential for
                broad application; and
                    ``(ii) has an effect on agriculture, food, nutrition,
                or the environment.
                ``(G) Institute.--The term `Institute' means the National
            Institute of Food and Agriculture established by paragraph
            (2)(A).
            ``(2) Establishment of national institute of food and
        agriculture.--
                ``(A) Establishment.--The Secretary shall establish within
            the Department an agency to be known as the `National Institute
            of Food and Agriculture'.
                ``(B) Transfer of authorities.--The Secretary shall
            transfer to the Institute, effective not later than October 1,
            2009, the authorities (including all budget authorities,
            available appropriations, and personnel), duties, obligations,
            and related legal and administrative functions prescribed by
            law or otherwise granted to the Secretary, the Department, or
            any other agency or official of the Department under--
                    ``(i) the capacity and infrastructure programs;
                    ``(ii) the competitive programs;
                    ``(iii) the research, education, economic, cooperative
                State research programs, cooperative extension and
                education programs, international programs, and other
                functions and authorities delegated by the Under Secretary
                to the Administrator of the Cooperative State Research,
                Education, and Extension Service pursuant to section 2.66
                of title 7, Code of Federal Regulations (or successor
                regulations); and
                    ``(iv) any and all other authorities administered by
                the Administrator of the Cooperative State Research,
                Education, and Extension Service.
            ``(3) Director.--
                ``(A) In general.--The Institute shall be headed by a
            Director, who shall be an individual who is--
                    ``(i) a distinguished scientist; and
                    ``(ii) appointed by the President.
                ``(B) Supervision.--The Director shall report directly to
            the Secretary, or the designee of the Secretary.
                ``(C) Functions of the director.--The Director shall--
                    ``(i) serve for a 6-year term, subject to reappointment
                for an additional 6-year term;
                    ``(ii) periodically report to the Secretary, or the
                designee of the Secretary, with respect to activities
                carried out by the Institute; and
                    ``(iii) consult regularly with the Secretary, or the
                designee of the Secretary, to ensure, to the maximum extent
                practicable, that--

                        ``(I) research of the Institute is relevant to
                    agriculture in the United States and otherwise serves
                    the national interest; and
                        ``(II) the research of the Institute supplements
                    and enhances, and does not supplant, research conducted
                    or funded by other Federal agencies.

                ``(D) Compensation.--The Director shall receive basic pay
            at a rate not to exceed the maximum amount of compensation
            payable to a member of the Senior Executive Service under
            subsection (b) of section 5382 of title 5, United States Code,
            except that the certification requirement in that subsection
            shall not apply to the compensation of the Director.
                ``(E) Authority and responsibilities of director.--Except
            as otherwise specifically provided in this subsection, the
            Director shall--
                    ``(i) exercise all of the authority provided to the
                Institute by this subsection;
                    ``(ii) formulate and administer programs in accordance
                with policies adopted by the Institute, in coordination
                with the Under Secretary;
                    ``(iii) establish offices within the Institute;
                    ``(iv) establish procedures for the provision and
                administration of grants by the Institute; and
                    ``(v) consult regularly with the Advisory Board.
            ``(4) Regulations.--The Institute shall have such authority as
        is necessary to carry out this subsection, including the authority
        to promulgate such regulations as the Institute considers to be
        necessary for governance of operations, organization, and
        personnel.
            ``(5) Administration.--
                ``(A) In general.--The Director shall organize offices and
            functions within the Institute to administer fundamental and
            applied research and extension and education programs.
                ``(B) Research priorities.--The Director shall ensure the
            research priorities established by the Under Secretary through
            the Research, Education and Extension Office are carried out by
            the offices and functions of the Institute, where applicable.
                ``(C) Fundamental and applied research.--The Director
            shall--
                    ``(i) determine an appropriate balance between
                fundamental and applied research programs and functions to
                ensure future research needs are met; and
                    ``(ii) designate staff, as appropriate, to assist in
                carrying out this subparagraph.
                ``(D) Competitively funded awards.--The Director shall--
                    ``(i) promote the use and growth of grants awarded
                through a competitive process; and
                    ``(ii) designate staff, as appropriate, to assist in
                carrying out this subparagraph.
                ``(E) Coordination.--The Director shall ensure that the
            offices and functions established under subparagraph (A) are
            effectively coordinated for maximum efficiency.
            ``(6) Funding.--
                ``(A) In general.--In addition to funds otherwise
            appropriated to carry out each program administered by the
            Institute, there are authorized to be appropriated such sums as
            are necessary to carry out this subsection for each fiscal
            year.
                ``(B) Allocation.--Funding made available under
            subparagraph (A) shall be allocated according to
            recommendations contained in the roadmap described in section
            7504 of the Food, Conservation, and Energy Act of 2008.''.
        (b) Functions.--Section 296(b) of the Department of Agriculture
    Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
            (1) in paragraph (4), by striking ``or'' at the end;
            (2) in paragraph (5), by striking the period at the end and
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(6) the authority of the Secretary to establish in the
        Department, under section 251--
                ``(A) the position of Under Secretary of Agriculture for
            Research, Education, and Economics;
                ``(B) the Research, Education, and Extension Office; and
                ``(C) the National Institute of Food and Agriculture.''.
        (c) Conforming Amendments.--The following conforming amendments
    shall take effect on October 1, 2009:
            (1) Section 522(d)(2) of the Federal Crop Insurance Act (7
        U.S.C. 1522(d)(2)) is amended by striking ``the Cooperative State
        Research, Education, and Extension Service'' and inserting ``the
        National Institute of Food and Agriculture''.
            (2) Section 524(a) of the Federal Crop Insurance Act (7 U.S.C.
        1524(a)) is amended in each of paragraphs (1)(B) and (3)(A) by
        striking ``the Cooperative State Research, Education, and Extension
        Service'' each place it appears and inserting ``the National
        Institute of Food and Agriculture''.
            (3) Section 306(a)(11)(C) of the Consolidated Farm and Rural
        Development Act (7 U.S.C. 1926(a)(11)(C)) is amended by striking
        ``the Cooperative State Research, Education, and Extension
        Service'' and inserting ``the National Institute of Food and
        Agriculture''.
            (4) Section 5(b)(2)(E) of the Agricultural Credit Improvement
        Act of 1992 (7 U.S.C. 1929 note; Public Law 102-554) is amended by
        striking ``Cooperative Extension Service'' and inserting ``National
        Institute of Food and Agriculture''.
            (5) Section 11(f)(1) of the Food and Nutrition Act of 2008 (7
        U.S.C. 2020(f)(1)) is amended by striking ``Cooperative Extension
        Service'' and inserting ``National Institute of Food and
        Agriculture''.
            (6) Section 502(h) of the Rural Development Act of 1972 (7
        U.S.C. 2662(h)) is amended--
                (A) in paragraph (1), by striking ``Extension Service'' and
            inserting ``National Institute of Food and Agriculture''; and
                (B) in paragraph (4), by striking ``Extension Service
            staff'' and inserting ``National Institute of Food and
            Agriculture staff''.
            (7) Section 7404(b)(1)(B) of the Farm Security and Rural
        Investment Act of 2002 (7 U.S.C. 3101 note; Public Law 107-171) is
        amended by striking clause (vi) and inserting the following:
                    ``(vi) the National Institute of Food and
                Agriculture.''.
            (8) Section 1408(b)(4) of the National Agricultural Research,
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123(b)(4)) is
        amended by striking ``the Administrator of the Cooperative State
        Research, Education, and Extension Service'' and inserting ``the
        Director of the National Institute of Food and Agriculture''.
            (9) Section 2381(a) of the Food, Agriculture, Conservation, and
        Trade Act of 1990 (7 U.S.C. 3125b(a)) is amended by striking
        ``Extension Service'' and inserting ``National Institute of Food
        and Agriculture''.
            (10) The National Agricultural Research, Extension, and
        Teaching Policy Act of 1977 is amended--
                (A) in section 1424A(b) (7 U.S.C. 3174a(b)), by striking
            ``the Cooperative State Research, Education, and Extension
            Service'' and inserting ``the National Institute of Food and
            Agriculture''; and
                (B) in section 1458(a)(10) (7 U.S.C. 3291(a)(10)), by
            striking ``the Cooperative State Research, Education, and
            Extension Service'' and inserting ``the National Institute of
            Food and Agriculture''.
            (11) Section 1587(a) of the Food Security Act of 1985 (7 U.S.C.
        3175d(a)) is amended by striking ``Extension Service'' each place
        it appears and inserting ``National Institute of Food and
        Agriculture''.
            (12) Section 1444(b)(2)(A) of the National Agricultural
        Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
        3221(b)(2)(A)) is amended by striking ``Extension Service'' and
        inserting ``National Institute of Food and Agriculture''.
            (13) Section 1473D(d) of the National Agricultural Research,
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319d(d)) is
        amended by striking ``the Cooperative State Research Service, the
        Extension Service'' and inserting ``the National Institute of Food
        and Agriculture''.
            (14) Section 1499(c) of the Food, Agriculture, Conservation,
        and Trade Act of 1990 (7 U.S.C. 5506(c)) is amended by striking
        ``the Cooperative State Research Service'' and all that follows
        through ``extension services;'' and inserting ``the National
        Institute of Food and Agriculture, in conjunction with the system
        of State agricultural experiment stations and State and county
        cooperative extension services; the Economic Research Service;''.
            (15) Section 1622 of the Food, Agriculture, Conservation, and
        Trade Act of 1990 (7 U.S.C. 5812) is amended--
                (A) in subsection (a)(1), by striking ``the Cooperative
            State Research Service in close cooperation with the Extension
            Service'' and inserting ``the National Institute of Food and
            Agriculture'';
                (B) in subsection (b)(1)--
                    (i) by striking subparagraphs (B) and (C) and inserting
                the following:
                ``(B) the National Institute of Food and Agriculture;'';
            and
                    (ii) by redesignating subparagraphs (D) through (L) as
                subparagraphs (C) through (K), respectively.
            (16) Section 1627(d) of the Food, Agriculture, Conservation,
        and Trade Act of 1990 (7 U.S.C. 5821(d)) is amended by striking
        ``Extension Service'' and inserting ``National Institute of Food
        and Agriculture''.
            (17) Section 1629 of the Food, Agriculture, Conservation, and
        Trade Act of 1990 (7 U.S.C. 5832) is amended--
                (A) in subsection (b), in the first sentence, by striking
            ``the Extension Service'' and inserting ``the National
            Institute of Food and Agriculture''; and
                (B) in subsection (h), by striking ``Extension Service''
            and inserting ``National Institute of Food and Agriculture''.
            (18) Section 1638(b) of the Food, Agriculture, Conservation,
        and Trade Act of 1990 (7 U.S.C. 5852(b)) is amended--
                (A) in paragraph (3), by striking ``Cooperative State
            Research Service'' and inserting ``National Institute of Food
            and Agriculture''; and
                (B) in paragraph (5), by striking ``Cooperative State
            Research Service'' and inserting ``National Institute of Food
            and Agriculture''.
            (19) Section 1640(a)(2) of the Food, Agriculture, Conservation,
        and Trade Act of 1990 (7 U.S.C. 5854(a)(2)) is amended by striking
        ``the Administrator of the Extension Service, the Administrator of
        the Cooperative State Research Service'' and inserting ``the
        Director of the National Institute of Food and Agriculture''.
            (20) Section 1641(a) of the Food, Agriculture, Conservation,
        and Trade Act of 1990 (7 U.S.C. 5855(a)) is amended--
                (A) in paragraph (2), by striking ``Cooperative State
            Research Service'' and inserting ``National Institute of Food
            and Agriculture''; and
                (B) in paragraph (4,) by striking ``Extension Service'' and
            inserting ``National Institute of Food and Agriculture''.
            (21) Section 1668(b) of the Food, Agriculture, Conservation,
        and Trade Act of 1990 (7 U.S.C. 5921(b)) is amended by striking
        ``Cooperative State Research, Education, and Extension Service''
        and inserting ``National Institute of Food and Agriculture''.
            (22) Section 1670(a)(4) of the Food, Agriculture, Conservation,
        and Trade Act of 1990 (7 U.S.C. 5923(a)(4)) is amended by striking
        ``the Administrator of the Cooperative State Research, Education,
        and Extension Service'' and inserting ``the Director of the
        National Institute of Food and Agriculture''.
            (23) Section 1677(a) of the Food, Agriculture, Conservation,
        and Trade Act of 1990 (7 U.S.C. 5930(a)) is amended by striking
        ``Extension Service'' and inserting ``National Institute of Food
        and Agriculture''.
            (24) Section 2122(b)(1) of the Food, Agriculture, Conservation,
        and Trade Act of 1990 (7 U.S.C. 6521(b)(1)) is amended by striking
        ``Extension Service'' and inserting ``National Institute of Food
        and Agriculture''.
            (25) Section 2371 of the Food, Agriculture, Conservation, and
        Trade Act of 1990 (7 U.S.C. 6601) is amended--
                (A) in subsection (a), by striking ``Extension Service''
            and inserting ``National Institute of Food and Agriculture'';
            and
                (B) in subsection (c)(3), by striking ``Service'' and
            inserting ``System''.
            (26) Section 2377(a) of the Food, Agriculture, Conservation,
        and Trade Act of 1990 (7 U.S.C. 6615(a)) is amended by striking
        ``Extension Service'' and inserting ``National Institute of Food
        and Agriculture''.
            (27) Section 212(a)(2)(A) of the Department of Agriculture
        Reorganization Act of 1994 (7 U.S.C. 6912(a)(2)(A)) is amended by
        striking ``251(d),'' and inserting ``251(f),''.
            (28) Section 537 of the Federal Agriculture Improvement and
        Reform Act of 1996 (7 U.S.C. 7446) is amended in each of
        subsections (a)(2) and (b)(3)(B)(i) by striking ``Cooperative State
        Research, Education, and Extension Service'' and inserting
        ``cooperative extension''.
            (29) Section 101(b)(2) of the Agricultural Research, Extension,
        and Education Reform Act of 1998 (7 U.S.C. 7611(b)(2)) is amended
        by striking ``Cooperative State Research, Education, and Extension
        Service'' and inserting ``National Institute of Food and
        Agriculture''.
            (30) Section 103(a) of the Agricultural Research, Extension,
        and Education Reform Act of 1998 (7 U.S.C. 7613(a)) is amended--
                (A) in the subsection heading, by striking ``Cooperative
            State Research, Education, and Extension Service'' and
            inserting ``National Institute of Food and Agriculture''; and
                (B) in each of paragraphs (1) and (2)(A), by striking ``the
            Cooperative State Research, Education, and Extension Service''
            and inserting ``the National Institute of Food and
            Agriculture''.
            (31) Section 407(c) of the Agricultural Research, Extension,
        and Education Reform Act of 1998 (7 U.S.C. 7627(c)) is amended by
        striking ``the Cooperative State Research, Education, and Extension
        Service'' and inserting ``the National Institute of Food and
        Agriculture''.
            (32) Section 410(a) of the Agricultural Research, Extension,
        and Education Reform Act of 1998 (7 U.S.C. 7630(a)) is amended by
        striking ``the Administrator of the Cooperative State Research,
        Education, and Extension Service'' and inserting ``the Director of
        the National Institute of Food and Agriculture''.
            (33) Section 307(g)(5) of the Agricultural Risk Protection Act
        of 2000 (7 U.S.C. 8606(g)(5)) is amended by striking
        ``Administrator of the Cooperative State Research, Education, and
        Extension Service'' and inserting ``Director of the National
        Institute of Food and Agriculture''.
            (34) Section 5(a) of the Renewable Resources Extension Act of
        1978 (16 U.S.C. 1674a(a)) is amended by striking ``Extension
        Service'' and inserting ``National Institute of Food and
        Agriculture''.
            (35) Section 6(b) of the Cooperative Forestry Assistance Act of
        1978 (16 U.S.C. 2103b(b)) is amended by striking ``the Cooperative
        State Research, Education, and Extension Service, may provide
        technical, financial, and related assistance to State foresters,
        equivalent State officials, or Cooperative Extension officials''
        and inserting ``the National Institute of Food and Agriculture, may
        provide technical, financial, and related assistance to State
        foresters, equivalent State officials, or cooperative extension
        officials''.
            (36) Section 9(g)(2)(A)(viii) of the Cooperative Forestry
        Assistance Act of 1978 (16 U.S.C. 2105(g)(2)(A)(viii)) is amended
        by striking ``Extension Service'' and inserting ``National
        Institute of Food and Agriculture''.
            (37) Section 19(b)(1)(B)(i) of the Cooperative Forestry
        Assistance Act of 1978 (16 U.S.C. 2113(b)(1)(B)(i)) is amended by
        striking ``Extension Service'' and inserting ``National Institute
        of Food and Agriculture''.
            (38) Section 1261(c)(4) of the Food Security Act of 1985 (16
        U.S.C. 3861(c)(4)) is amended by striking ``Extension Service'' and
        inserting ``National Institute of Food and Agriculture''.
            (39) Section 105(a) of the Africa: Seeds of Hope Act of 1998
        (22 U.S.C. 2293 note; Public Law 105-385) is amended by striking
        ``the Cooperative State, Research, Education, and Extension Service
        (CSREES)'' and inserting ``the National Institute of Food and
        Agriculture''.
            (40) Section 307(a)(4) of the National Aeronautic and Space
        Administration Authorization Act of 2005 (42 U.S.C. 16657(a)(4)) is
        amended by striking subparagraph (B) and inserting the following:
                ``(B) the program and structure of, peer review process of,
            management of conflicts of interest by, compensation of
            reviewers of, and the effects of compensation on reviewer
            efficiency and quality within, the National Institute of Food
            and Agriculture of the Department of Agriculture;''.

                   PART III--NEW GRANT AND RESEARCH PROGRAMS

    SEC. 7521. RESEARCH AND EDUCATION GRANTS FOR THE STUDY OF ANTIBIOTIC-
    RESISTANT BACTERIA.
        (a) In General.--The Secretary shall provide research and education
    grants, on a competitive basis--
            (1) to study the development of antibiotic-resistant bacteria,
        including--
                (A) movement of antibiotic-resistant bacteria into
            groundwater and surface water; and
                (B) the effect on antibiotic resistance from various drug
            use regimens; and
            (2) to study and ensure the judicious use of antibiotics in
        veterinary and human medicine, including--
                (A) methods and practices of animal husbandry;
                (B) safe and effective alternatives to antibiotics;
                (C) the development of better veterinary diagnostics to
            improve decisionmaking; and
                (D) the identification of conditions or factors that affect
            antibiotic use on farms.
        (b) Administration.--Paragraphs (4), (7), (8), and (11)(B) of
    subsection (b) of the Competitive, Special, and Facilities Research
    Grant Act (7 U.S.C. 450i) shall apply with respect to the making of
    grants under this section.
        (c) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as are necessary to carry out this section for
    each of fiscal years 2008 through 2012.
    SEC. 7522. FARM AND RANCH STRESS ASSISTANCE NETWORK.
        (a) In General.--The Secretary, in coordination with the Secretary
    of Health and Human Services, shall make competitive grants to support
    cooperative programs between State cooperative extension services and
    nonprofit organizations to establish a Farm and Ranch Stress Assistance
    Network that provides stress assistance programs to individuals who are
    engaged in farming, ranching, and other agriculture-related
    occupations.
        (b) Eligible Programs.--Grants awarded under subsection (a) may be
    used to initiate, expand, or sustain programs that provide professional
    agricultural behavioral health counseling and referral for other forms
    of assistance as necessary through--
            (1) farm telephone helplines and websites;
            (2) community education;
            (3) support groups;
            (4) outreach services and activities; and
            (5) home delivery of assistance, in a case in which a farm
        resident is homebound.
        (c) Extension Services.--Grants shall be awarded under this
    subsection directly to State cooperative extension services to enable
    the State cooperative extension services to enter into contracts, on a
    multiyear basis, with nonprofit, community-based, direct-service
    organizations to initiate, expand, or sustain cooperative programs
    described in subsections (a) and (b).
        (d) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as are necessary to carry out this section for
    each of fiscal years 2008 through 2012.
    SEC. 7523. SEED DISTRIBUTION.
        (a) In General.--The Secretary shall make competitive grants to
    eligible entities to carry out a seed distribution program to
    administer and maintain the distribution of vegetable seeds donated by
    commercial seed companies.
        (b) Purposes.--The purposes of this program include--
            (1) the distribution of seeds donated by commercial seed
        companies free-of-charge to appropriate--
                (A) individuals;
                (B) groups;
                (C) institutions;
                (D) governmental and nongovernmental organizations; and
                (E) such other entities as the Secretary may designate;
            (2) distribution of seeds to underserved communities, such as
        communities that experience--
                (A) limited access to affordable fresh vegetables;
                (B) a high rate of hunger or food insecurity; or
                (C) severe or persistent poverty.
        (c) Administration.--Paragraphs (4), (7), (8), and (11)(B) of
    subsection (b) of the Competitive, Special, and Facilities Research
    Grant Act (7 U.S.C. 450i) shall apply with respect to the making of
    grants under this section.
        (d) Selection.--An eligible entity selected to receive a grant
    under subsection (a) shall have--
            (1) expertise regarding the distribution of vegetable seeds
        donated by commercial seed companies; and
            (2) the ability to achieve the purpose of the seed distribution
        program.
        (e) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as are necessary to carry out this section for
    each of fiscal years 2008 through 2012.
    SEC. 7524. LIVE VIRUS FOOT AND MOUTH DISEASE RESEARCH.
        (a) In General.--The Secretary shall issue a permit required under
    section 12 of the Act of May 29, 1884 (21 U.S.C. 113a) to the Secretary
    of Homeland Security for work on the live virus of foot and mouth
    disease at any facility that is a successor to the Plum Island Animal
    Disease Center and charged with researching high-consequence biological
    threats involving zoonotic and foreign animal diseases (referred to in
    this section as the ``successor facility'').
        (b) Limitation to Single Facility.--Not more than 1 facility shall
    be issued a permit under subsection (a).
        (c) Limitation on Validity.--The permit issued under this section
    shall be valid unless the Secretary determines that the study of live
    foot and mouth disease virus at the successor facility is not being
    carried out in accordance with the regulations promulgated by the
    Secretary pursuant to the Agricultural Bioterrorism Protection Act of
    2002 (7 U.S.C. 8401 et seq.).
        (d) Authority.--The suspension, revocation, or other impairment of
    the permit issued under this section--
            (1) shall be made by the Secretary; and
            (2) is a nondelegable function.
    SEC. 7525. NATURAL PRODUCTS RESEARCH PROGRAM.
        (a) In General.--The Secretary shall establish within the
    Department a natural products research program.
        (b) Duties.--In carrying out the program established under
    subsection (a), the Secretary shall coordinate research relating to
    natural products, including--
            (1) research to improve human health and agricultural
        productivity through the discovery, development, and
        commercialization of products and agrichemicals from bioactive
        natural products, including products from plant, marine, and
        microbial sources;
            (2) research to characterize the botanical sources, production,
        chemistry, and biological properties of plant-derived natural
        products; and
            (3) other research priorities identified by the Secretary.
        (c) Peer and Merit Review.--The Secretary shall--
            (1) determine the relevance and merit of research under this
        section through a system of peer review established by the
        Secretary pursuant to section 103 of the Agricultural Research,
        Extension, and Education Reform Act of 1998 (7 U.S.C. 7613); and
            (2) approve funding for research on the basis of merit,
        quality, and relevance to advancing the purposes of this section.
        (d) Buildings and Facilities.--Funds made available under this
    section shall not be used for the construction of a new building or
    facility or the acquisition, expansion, remodeling, or alteration of an
    existing building or facility (including site grading and improvement
    and architect fees).
        (e) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this section such sums as are necessary for
    each of fiscal years 2008 through 2012.
    SEC. 7526. SUN GRANT PROGRAM.
        (a) Establishment.--The Secretary shall establish and carry out a
    program to provide grants to the sun grant centers and subcenter
    specified in subsection (b)--
            (1) to enhance national energy security through the
        development, distribution, and implementation of biobased energy
        technologies;
            (2) to promote diversification in, and the environmental
        sustainability of, agricultural production in the United States
        through biobased energy and product technologies;
            (3) to promote economic diversification in rural areas of the
        United States through biobased energy and product technologies; and
            (4) to enhance the efficiency of bioenergy and biomass research
        and development programs through improved coordination and
        collaboration among--
                (A) the Department of Agriculture;
                (B) the Department of Energy; and
                (C) land-grant colleges and universities.
        (b) Grants.--
            (1) In general.--The Secretary shall use amounts made available
        under subsection (g) to provide grants to each of the following:
                (A) North-central center.--A north-central sun grant center
            at South Dakota State University for the region composed of the
            States of Illinois, Indiana, Iowa, Minnesota, Montana,
            Nebraska, North Dakota, South Dakota, Wisconsin, and Wyoming.
                (B) Southeastern center.--A southeastern sun grant center
            at the University of Tennessee at Knoxville for the region
            composed of--
                    (i) the States of Alabama, Florida, Georgia, Kentucky,
                Mississippi, North Carolina, South Carolina, Tennessee, and
                Virginia;
                    (ii) the Commonwealth of Puerto Rico; and
                    (iii) the United States Virgin Islands.
                (C) South-central center.--A south-central sun grant center
            at Oklahoma State University for the region composed of the
            States of Arkansas, Colorado, Kansas, Louisiana, Missouri, New
            Mexico, Oklahoma, and Texas.
                (D) Western center.--A western sun grant center at Oregon
            State University for the region composed of--
                    (i) the States of Alaska, Arizona, California, Hawaii,
                Idaho, Nevada, Oregon, Utah, and Washington; and
                    (ii) insular areas (as defined in section 1404 of the
                National Agricultural Research, Extension, and Teaching
                Policy Act of 1977 (7 U.S.C. 3103 (other than the insular
                areas referred to in clauses (ii) and (iii) of subparagraph
                (B))).
                (E) Northeastern center.--A northeastern sun grant center
            at Cornell University for the region composed of the States of
            Connecticut, Delaware, Massachusetts, Maryland, Maine,
            Michigan, New Hampshire, New Jersey, New York, Ohio,
            Pennsylvania, Rhode Island, Vermont, and West Virginia.
                (F) Western insular pacific subcenter.--A western insular
            Pacific sun grant subcenter at the University of Hawaii for the
            region of Alaska, Hawaii, Guam, American Samoa, the
            Commonwealth of the Northern Mariana Islands, the Federated
            States of Micronesia, the Republic of the Marshall Islands, and
            the Republic of Palau.
            (2) Manner of distribution.--
                (A) Centers.--In providing any funds made available under
            subsection (g), the Secretary shall distribute the grants in
            equal amounts to the sun grant centers described in
            subparagraphs (A) through (E) of paragraph (1).
                (B) Subcenter.--The sun grant center described in paragraph
            (1)(D) shall allocate a portion of the funds received under
            paragraph (1) to the subcenter described in paragraph (1)(F)
            pursuant to guidance issued by the Secretary.
            (3) Failure to comply with requirements.--If the Secretary
        finds on the basis of a review of the annual report required under
        subsection (f) or on the basis of an audit of a sun grant center or
        subcenter conducted by the Secretary that the center or subcenter
        has not complied with the requirements of this section, the sun
        grant center or subcenter shall be ineligible to receive further
        grants under this section for such period of time as may be
        prescribed by the Secretary.
        (c) Use of Funds.--
            (1) Competitive grants.--
                (A) In general.--A sun grant center or subcenter shall use
            75 percent of the funds described in subsection (b) to provide
            competitive grants to entities that are--
                    (i) eligible to receive grants under subsection (b)(7)
                of the Competitive, Special, and Facilities Research Grant
                Act (7 U.S.C. 450i(b)(7)); and
                    (ii) located in the region covered by the sun grant
                center or subcenter.
                (B) Activities.--Grants described in subparagraph (A) shall
            be used by the grant recipient to conduct, in a manner
            consistent with the purposes described in subsection (a),
            multi-institutional and multistate--
                    (i) research, extension, and education programs on
                technology development; and
                    (ii) integrated research, extension, and education
                programs on technology implementation.
                (C) Funding allocation.--Of the amount of funds that is
            used to provide grants under subparagraph (A), the sun grant
            center or subcenter shall use--
                    (i) not less than 30 percent of the funds to carry out
                the programs described in subparagraph (B)(i); and
                    (ii) not less than 30 percent of the funds to carry out
                the programs described in subparagraph (B)(ii).
                (D) Administration.--
                    (i) Peer and merit review.--In making grants under this
                paragraph, a sun grant center or subcenter shall--

                        (I) seek and accept proposals for grants;
                        (II) determine the relevance and merit of proposals
                    through a system of peer review similar to that
                    established by the Secretary pursuant to section 103 of
                    the Agricultural Research, Extension, and Education
                    Reform Act of 1998 (7 U.S.C. 7613); and
                        (III) award grants on the basis of merit, quality,
                    and relevance to advancing the purposes of this
                    section.

                    (ii) Priority.--A sun grant center or subcenter shall
                give a higher priority to programs that are consistent with
                the plan approved by the Secretary under subsection (d).
                    (iii) Term.--A grant awarded by a sun grant center or
                subcenter shall have a term that does not exceed 5 years.
                    (iv) Matching funds required.--

                        (I) In general.--Except as provided in subclauses
                    (II) and (III), as a condition of receiving a grant
                    under this paragraph, the sun grant center or subcenter
                    shall require that not less than 20 percent of the cost
                    of an activity described in subparagraph (B) be matched
                    with funds, including in-kind contributions, from a
                    non-Federal source.
                        (II) Exclusion.--Subclause (I) shall not apply to
                    fundamental research (as defined in subsection (f)(1)
                    of section 251 of the Department of Agriculture
                    Reorganization Act of 1994 (7 U.S.C. 6971) (as added by
                    section 7511(a)(4)).
                        (III) Reduction.--The sun grant center or subcenter
                    may reduce or eliminate the requirement for non-Federal
                    funds under subclause (I) for applied research (as
                    defined in subsection (f)(1) of section 251 of the
                    Department of Agriculture Reorganization Act of 1994 (7
                    U.S.C. 6971) (as added by section 7511(a)(4)) if the
                    sun grant center or subcenter determines that the
                    reduction is necessary and appropriate pursuant to
                    guidance issued by the Secretary.

                    (v) Buildings and facilities.--Funds made available for
                grants shall not be used for the construction of a new
                building or facility or the acquisition, expansion,
                remodeling, or alteration of an existing building or
                facility (including site grading and improvement and
                architect fees).
                    (vi) Limitation on indirect costs.--A sun grant center
                or subcenter may not recover the indirect costs of making
                grants under subparagraph (A).
            (2) Administrative expenses.--A sun grant center or subcenter
        may use up to 4 percent of the funds described in subsection (b) to
        pay administrative expenses incurred in carrying out paragraph (1).
            (3) Research, extension and educational activities.--The sun
        grant centers and subcenter shall use the remainder of the funds
        described in subsection (b) to conduct, in a manner consistent with
        the purposes described in subsection (a), multi-institutional and
        multistate--
                (A) research, extension, and educational programs on
            technology development; and
                (B) integrated research, extension, and educational
            programs on technology implementation.
        (d) Plan for Research Activities to Be Funded.--
            (1) In general.--Subject to the availability of funds under
        subsection (g), and in cooperation with land-grant colleges and
        universities and private industry in accordance with paragraph (2),
        the sun grant centers and subcenter shall jointly develop and
        submit to the Secretary for approval a plan for addressing the
        bioenergy, biomass, and gasification research priorities of the
        Department of Agriculture and the Department of Energy at the State
        and regional levels.
            (2) Gasification coordination.--With respect to gasification
        research activity, the sun grant centers and subcenter shall
        coordinate planning with land-grant colleges and universities in
        their respective regions that have ongoing research activities in
        that area.
            (3) Funding.--Funds described in subsection (c)(2) shall be
        available to carry out planning coordination under paragraph (1).
            (4) Use of plan.--The sun grant centers and subcenter shall use
        the plan described in paragraph (1) in making grants under
        subsection (c)(1).
        (e) Grant Information Analysis Center.--The sun grant centers and
    subcenter shall maintain a Sun Grant Information Analysis Center at the
    sun grant center specified in subsection (b)(1)(A) to provide the sun
    grant centers and subcenter with analysis and data management support.
        (f) Annual Reports.--Not later than 90 days after the end of each
    fiscal year, a sun grant center or subcenter receiving a grant under
    this section shall submit to the Secretary a report that describes the
    policies, priorities, and operations of the program carried out by the
    center or subcenter during the fiscal year, including--
            (1) the results of all peer and merit review procedures
        conducted pursuant to subsection (c)(1)(D)(i); and
            (2) a description of progress made in facilitating the
        priorities described in subsection (d)(1).
        (g) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $75,000,000 for each of fiscal
    years 2008 through 2012, of which not more than $4,000,000 for each
    fiscal year shall be made available to carry out subsection (e).
    SEC. 7527. STUDY AND REPORT ON FOOD DESERTS.
        (a) Definition of Food Desert.--In this section, the term ``food
    desert'' means an area in the United States with limited access to
    affordable and nutritious food, particularly such an area composed of
    predominantly lower-income neighborhoods and communities.
        (b) Study and Report.--The Secretary shall carry out a study of,
    and prepare a report on, food deserts.
        (c) Contents.--The study and report shall--
            (1) assess the incidence and prevalence of food deserts;
            (2) identify--
                (A) characteristics and factors causing and influencing
            food deserts; and
                (B) the effect on local populations of limited access to
            affordable and nutritious food; and
            (3) provide recommendations for addressing the causes and
        effects of food deserts through measures that include--
                (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.
        (d) 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.
        (e) Submission to Congress.--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 the report prepared
    under this section, including the findings and recommendations
    described in subsection (c).
        (f) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $500,000.
    SEC. 7528. 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. 7529. AGRICULTURAL AND RURAL TRANSPORTATION RESEARCH AND
    EDUCATION.
        (a) In General.--The Secretary, in consultation with the Secretary
    of Transportation, shall make competitive grants to institutions of
    higher education to carry out agricultural and rural transportation
    research and education activities.
        (b) Activities.--Research and education grants made under this
    section shall be used to address rural transportation and logistics
    needs of agricultural producers and related rural businesses,
    including--
            (1) the transportation of biofuels; and
            (2) the export of agricultural products.
        (c) Selection Criteria.--
            (1) In general.--The Secretary shall award grants under this
        section on the basis of the transportation research, education, and
        outreach expertise of the applicant, as determined by the
        Secretary.
            (2) Priority.--In awarding grants under this section, the
        Secretary shall give priority to institutions of higher education
        for use in coordinating research and education activities with
        other institutions of higher education with similar agricultural
        and rural transportation research and education programs.
        (d) Diversification of Research.--The Secretary shall award grants
    under this section in areas that are regionally diverse and broadly
    representative of the diversity of agricultural production and related
    transportation needs in the rural areas of the United States.
        (e) Matching Funds Requirement.--The Secretary shall require each
    recipient of a grant under this section to provide, from non-Federal
    sources, in cash or in kind, 50 percent of the cost of carrying out
    activities under the grant.
        (f) Grant Review.--A grant shall be awarded under this section on a
    competitive, peer- and merit-reviewed basis in accordance with section
    103(a) of the Agricultural Research, Extension, and Education Reform
    Act of 1998 (7 U.S.C. 7613(a)).
        (g) No Duplication.--In awarding grants under this section, the
    Secretary shall ensure that activities funded under this section do not
    duplicate the efforts of the University Transportation Centers
    described in sections 5505 and 5506 of title 49, United States Code.
        (h) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $5,000,000 for each of fiscal
    years 2008 through 2012.

                              TITLE VIII--FORESTRY
     Subtitle A--Amendments to 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 new
        subsections:
        ``(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,
    notwithstanding other priorities specified elsewhere in this Act:
            ``(1) Conserving and managing working forest landscapes for
        multiple values and uses.
            ``(2) Protecting forests from threats, including catastrophic
        wildfires, hurricanes, tornados, windstorms, snow or ice storms,
        flooding, drought, invasive species, insect or disease outbreak, or
        development, and restoring appropriate forest types in response to
        such threats.
            ``(3) Enhancing public benefits from private forests, including
        air and water quality, soil conservation, biological diversity,
        carbon storage, forest products, forestry-related jobs, production
        of renewable energy, wildlife, 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 funds
    were used under this Act, and through other programs administered by
    the Secretary, to address the national priorities specified in
    subsection (c) and the outcomes achieved in meeting the national
    priorities.''.
    SEC. 8002. LONG-TERM STATE-WIDE ASSESSMENTS AND STRATEGIES FOR FOREST
    RESOURCES.
        The Cooperative Forestry Assistance Act of 1978 is amended by
    inserting after section 2 (16 U.S.C. 2101) the following new section:
      ``SEC. 2A. STATE-WIDE ASSESSMENT AND STRATEGIES FOR FOREST RESOURCES.
        ``(a) Assessment and Strategies for Forest Resources.--For a State
    to be eligible to receive funds under the authorities of this Act, the
    State forester of that State or equivalent State official shall develop
    and submit to the Secretary, not later than two years after the date of
    enactment of the Food, Conservation, and Energy Act of 2008, the
    following:
            ``(1) A State-wide assessment of forest resource conditions,
        including--
                ``(A) the conditions and trends of forest resources in that
            State;
                ``(B) the threats to forest lands and resources in that
            State consistent with the national priorities specified in
            section 2(c);
                ``(C) any areas or regions of that State that are a
            priority; and
                ``(D) any multi-State areas that are a regional priority.
            ``(2) A long-term State-wide forest resource strategy,
        including--
                ``(A) strategies for addressing threats to forest resources
            in the State outlined in the assessment required by paragraph
            (1); and
                ``(B) a description of the resources necessary for the
            State forester or equivalent State official from all sources to
            address the State-wide strategy.
        ``(b) Updating.--At such times as the Secretary determines to be
    necessary, the State forester or equivalent State official shall update
    and resubmit to the Secretary the State-wide assessment and State-wide
    strategy required by subsection (a).
        ``(c) Coordination.--In developing or updating the State-wide
    assessment and State-wide strategy required by subsection (a), the
    State Forester or equivalent State official shall coordinate with--
            ``(1) the State Forest Stewardship Coordinating Committee
        established for the State under section 19(b);
            ``(2) the State wildlife agency, with respect to strategies
        contained in the State wildlife action plans;
            ``(3) the State Technical Committee;
            ``(4) applicable Federal land management agencies; and
            ``(5) for purposes of the Forest Legacy Program under section
        7, the State lead agency designated by the Governor.
        ``(d) Incorporation of Other Plans.--In developing or updating the
    State-wide assessment and State-wide strategy required by subsection
    (a), the State forester or equivalent State official shall incorporate
    any forest management plan of the State, including community wildfire
    protection plans and State wildlife action plans.
        ``(e) Sufficiency.--Once approved by the Secretary, a State-wide
    assessment and State-wide strategy developed under subsection (a) shall
    be deemed to be sufficient to satisfy all relevant State planning and
    assessment requirements under this Act.
        ``(f) Funding.--
            ``(1) Authorization of appropriations.--There are authorized to
        be appropriated to carry out this section up to $10,000,000 for
        each of fiscal years 2008 through 2012.
            ``(2) Additional funding sources.--In addition to the funds
        appropriated for a fiscal year pursuant to the authorization of
        appropriations in paragraph (1) to carry out this section, the
        Secretary may use any other funds made available for planning under
        this Act to carry out this section, except that the total amount of
        combined funding used to carry out this section may not exceed
        $10,000,000 in any fiscal year.
        ``(g) Annual Report on Use of Funds.--The State forester or
    equivalent State official shall submit to the Secretary an annual
    report detailing how funds made available to the State under this Act
    are being used.''.
    SEC. 8003. 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 new section:
      ``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 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 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 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 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.
        ``(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.--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 equivalent officials of Indian tribes)
    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. 8004. 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 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,''.
    SEC. 8005. CHANGES TO FOREST RESOURCE COORDINATING COMMITTEE.
        Section 19 of the Cooperative Forestry Assistance Act of 1978 (16
    U.S.C. 2113) is amended by striking subsection (a) and inserting the
    following new subsection:
        ``(a) Forest Resource Coordinating Committee.--
            ``(1) Establishment.--The Secretary shall establish a
        committee, to be known as the `Forest Resource Coordinating
        Committee' (in this section referred to as the `Coordinating
        Committee'), to coordinate nonindustrial private forestry
        activities within the Department of Agriculture and with the
        private sector.
            ``(2) Composition.--The Coordinating Committee shall be
        composed of the following:
                ``(A) The Chief of the Forest Service.
                ``(B) The Chief of the Natural Resources Conservation
            Service.
                ``(C) The Director of the Farm Service Agency.
                ``(D) The Director of the National Institute of Food and
            Agriculture.
                ``(E) Non-Federal representatives appointed by the
            Secretary to 3 year terms, although initial appointees shall
            have staggered terms, including the following persons:
                    ``(i) At least three State foresters or equivalent
                State officials from geographically diverse regions of the
                United States.
                    ``(ii) A representative of a State fish and wildlife
                agency.
                    ``(iii) An owner of nonindustrial private forest land.
                    ``(iv) A forest industry representative.
                    ``(v) A conservation organization representative.
                    ``(vi) A land-grant university or college
                representative.
                    ``(vii) A private forestry consultant.
                    ``(viii) A representative from a State Technical
                Committee established under section 1261 of the Food
                Security Act of 1985 (16 U.S.C. 3861).
                ``(F) Such other persons as determined by the Secretary to
            be appropriate.
            ``(3) Chairperson.--The Chief of the Forest Service shall serve
        as chairperson of the Coordinating Committee.
            ``(4) Duties.--The Coordinating Committee shall--
                ``(A) provide direction and coordination of actions within
            the Department of Agriculture, and coordination with State
            agencies and the private sector, to effectively address the
            national priorities specified in section 2(c), with specific
            focus owners of nonindustrial private forest land;
                ``(B) clarify individual agency responsibilities of each
            agency represented on the Coordinating Committee concerning the
            national priorities specified in section 2(c), with specific
            focus on nonindustrial private forest land;
                ``(C) provide advice on the allocation of funds, including
            the competitive funds set-aside by sections 13A and 13B; and
                ``(D) assist the Secretary in developing and reviewing the
            report required by section 2(d).
            ``(5) Meeting.--The Coordinating Committee shall meet annually
        to discuss progress in addressing the national priorities specified
        in section 2(c) and issues regarding nonindustrial private forest
        land.
            ``(6) Compensation.--
                ``(A) Federal members.--Members of the Coordinating
            Committee who are full-time officers or employees of the United
            States shall receive no additional pay, allowances, or benefits
            by reason of their service on the Coordinating Committee.
                ``(B) Non-federal members.--Non-federal members of the
            Coordinating Committee shall serve without pay, but may be
            reimbursed for reasonable costs incurred while performing their
            duties on behalf of the Coordinating Committee.''.
    SEC. 8006. CHANGES TO STATE FOREST STEWARDSHIP COORDINATING COMMITTEES.
        Section 19(b) of the Cooperative Forestry Assistance Act of 1978
    (16 U.S.C. 2113(b)) is amended--
            (1) in paragraph (1)(B)(ii)--
                (A) by striking ``and'' at the end of subclause (VII); and
                (B) by adding at the end the following new subclause:

                        ``(IX) the State Technical Committee.''.

            (2) in paragraph (2)(C), by striking ``a Forest Stewardship
        Plan under paragraph (3)'' and inserting ``the State-wide
        assessment and strategy regarding forest resource conditions under
        section 2A'';
            (3) by striking paragraphs (3) and (4); and
            (4) by redesignating paragraphs (5) and (6) as paragraphs (3)
        and (4), respectively.
    SEC. 8007. COMPETITION IN PROGRAMS UNDER COOPERATIVE FORESTRY
    ASSISTANCE ACT OF 1978.
        The Cooperative Forestry Assistance Act of 1978 is amended by
    inserting after section 13 (16 U.S.C. 2109) the following new section:
        ``SEC. 13A. COMPETITIVE ALLOCATION OF FUNDS TO STATE FORESTERS OR
          EQUIVALENT STATE OFFICIALS.
        ``(a) Competition.--Beginning not later than 3 years after the date
    of the enactment of the Food, Conservation, and Energy Act of 2008, the
    Secretary shall competitively allocate a portion, to be determined by
    the Secretary, of the funds available under this Act to State foresters
    or equivalent State officials.
        ``(b) Determination.--In determining the competitive allocation of
    funds under subsection (a), the Secretary shall consult with the Forest
    Resource Coordinating Committee established by section 19(a).
        ``(c) Priority.--The Secretary shall give priority for funding to
    States for which the long-term State-wide forest resource strategies
    submitted under section 2A(a)(2) will best promote the national
    priorities specified in section 2(c).''.
    SEC. 8008. COMPETITIVE ALLOCATION OF FUNDS FOR COOPERATIVE FOREST
    INNOVATION PARTNERSHIP PROJECTS.
        The Cooperative Forestry Assistance Act of 1978 is amended by
    inserting after section 13A, as added by section 8006, the following
    new section:
        ``SEC. 13B. COMPETITIVE ALLOCATION OF FUNDS FOR COOPERATIVE FOREST
          INNOVATION PARTNERSHIP PROJECTS.
        ``(a) Cooperative Forest Innovation Partnership Projects.--The
    Secretary may competitively allocate not more than 5 percent of the
    funds made available under this Act to support innovative national,
    regional, or local education, outreach, or technology transfer projects
    that the Secretary determines would substantially increase the ability
    of the Department of Agriculture to address the national priorities
    specified in section 2(c).
        ``(b) Eligibility.--Notwithstanding the eligibility limitations
    contained in this Act, any State or local government, Indian tribe,
    land-grant college or university, or private entity shall be eligible
    to compete for funds to be competitively allocated under subsection
    (a).
        ``(c) Cost-Share Requirement.--In carrying out subsection (a), the
    Secretary shall not cover more than 50 percent of the total cost of a
    project under such subsection. In calculating the total cost of a
    project and contributions made with regard to the project, the
    Secretary shall include in-kind contributions.''.

            Subtitle B--Cultural and Heritage Cooperation Authority

    SEC. 8101. PURPOSES.
        The purposes of this subtitle are--
            (1) to authorize the reburial of human remains and cultural
        items on National Forest System land, including human remains and
        cultural items repatriated under the Native American Graves
        Protection and Repatriation Act (25 U.S.C. 3001 et seq.);
            (2) to prevent the unauthorized disclosure of information
        regarding reburial sites, including the quantity and identity of
        human remains and cultural items on sites and the location of
        sites;
            (3) to authorize the Secretary of Agriculture 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,
        without consideration, 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. 8102. DEFINITIONS.
        In this subtitle:
            (1) Adjacent site.--The term ``adjacent site'' means a site
        that borders a boundary line of National Forest System land.
            (2) Cultural items.--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), except that the
        term 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) Indian.--The term ``Indian'' means an individual who is a
        member of an Indian tribe.
            (5) Indian tribe.--The term ``Indian tribe'' 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).
            (6) 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.
            (7) 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)).
            (8) Reburial site.--The term ``reburial site'' means a specific
        physical location at which cultural items or human remains are
        reburied.
            (9) 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. 8103. 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 of reburial sites on National Forest System
        land, or on the National Forest System land immediately surrounding
        a reburial site, 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. 8104. TEMPORARY CLOSURE FOR TRADITIONAL AND CULTURAL PURPOSES.
        (a) Recognition of Historic Use.--To the maximum extent
    practicable, the Secretary shall 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) Authority to close.--Upon the approval by the Secretary of
        a request from an Indian tribe, the Secretary may temporarily close
        from public access specifically identified 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. 8105. 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. 8106. 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''), information relating to--
                (A) subject to subsection (b)(l), human remains or cultural
            items reburied on National Forest System land under section
            8103; 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 8103.
        (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 subtitle; 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, in consultation with
        appropriate Indian tribes, may disclose information described under
        paragraph (1)(B) or (2) of subsection (a) if the Secretary
        determines that disclosure of the information to the public--
                (A) would advance the purposes of this subtitle;
                (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. 8107. SEVERABILITY AND SAVINGS PROVISIONS.
        (a) Severability.--If any provision of this subtitle, or the
    application of any provision of this subtitle to any person or
    circumstance is held invalid, the application of such provision or
    circumstance and the remainder of this subtitle shall not be affected
    thereby.
        (b) Savings.--Nothing in this subtitle--
            (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 Forestry-Related Laws

    SEC. 8201. RURAL REVITALIZATION TECHNOLOGIES.
        Section 2371(d)(2) of the Food, Agriculture, Conservation, and
    Trade Act of 1990 (7 U.S.C. 6601(d)(2)) is amended by striking ``2004
    through 2008'' and inserting ``2008 through 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. EMERGENCY FOREST RESTORATION PROGRAM.
        (a) Establishment.--Title IV of the Agricultural Credit Act of 1978
    (16 U.S.C. 2201 et seq.) is amended by adding at the end the following
    new section:
        ``SEC. 407. EMERGENCY FOREST RESTORATION PROGRAM.
        ``(a) Definitions.--In this section:
            ``(1) Emergency measures.--The term `emergency measures' means
        those measures that--
                ``(A) are necessary to address damage caused by a natural
            disaster to natural resources on nonindustrial private forest
            land, and the damage, if not treated--
                    ``(i) would impair or endanger the natural resources on
                the land; and
                    ``(ii) would materially affect future use of the land;
                and
                ``(B) would restore forest health and forest-related
            resources on the land.
            ``(2) Natural disaster.--The term `natural disaster' includes
        wildfires, hurricanes or excessive winds, drought, ice storms or
        blizzards, floods, or other resource-impacting events, as
        determined by the Secretary.
            ``(3) 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 had tree cover
            immediately before the natural disaster and is suitable for
            growing trees); and
                ``(B) is owned by any nonindustrial private individual,
            group, association, corporation, or other private legal entity,
            that has definitive decision-making authority over the land.
            ``(4) Secretary.--The term `Secretary' means the Secretary of
        Agriculture.
        ``(b) Availability of Assistance.--The Secretary may make payments
    to an owner of nonindustrial private forest land who carries out
    emergency measures to restore the land after the land is damaged by a
    natural disaster.
        ``(c) Eligibility.--To be eligible to receive a payment under
    subsection (b), an owner must demonstrate to the satisfaction of the
    Secretary that the nonindustrial private forest land on which the
    emergency measures are carried out had tree cover immediately before
    the natural disaster.
        ``(d) Cost Share Requirement.--Payments made under subsection (b)
    shall not exceed 75 percent of the total cost of the emergency measures
    carried out by an owner of nonindustrial private forest land.
        ``(e) Authorization of Appropriations.--There are authorized to be
    appropriated to the Secretary such funds as may be necessary to carry
    out this section. Amounts so appropriated shall remain available until
    expended.''.
        (b) Regulations.--Not later than one year after the date of the
    enactment of this Act, the Secretary of Agriculture shall issue
    regulations to carry out section 407 of the Agricultural Credit Act of
    1978, as added by subsection (a).
    SEC. 8204. PREVENTION OF ILLEGAL LOGGING PRACTICES.
        (a) Definitions.--
            (1) Plant.--Subsection (f) of section 2 of the Lacey Act
        Amendments of 1981 (16 U.S.C. 3371) is amended to read as follows:
        ``(f) Plant.--
            ``(1) In general.--The terms `plant' and `plants' mean any wild
        member of the plant kingdom, including roots, seeds, parts, or
        products thereof, and including trees from either natural or
        planted forest stands.
            ``(2) Exclusions.--The terms `plant' and `plants' exclude--
                ``(A) common cultivars, except trees, and common food crops
            (including roots, seeds, parts, or products thereof);
                ``(B) a scientific specimen of plant genetic material
            (including roots, seeds, germplasm, parts, or products thereof)
            that is to be used only for laboratory or field research; and
                ``(C) any plant that is to remain planted or to be planted
            or replanted.
            ``(3) Exceptions to application of exclusions.--The exclusions
        made by subparagraphs (B) and (C) of paragraph (2) do not apply if
        the plant is listed--
                ``(A) in an appendix to the Convention on International
            Trade in Endangered Species of Wild Fauna and Flora (27 UST
            1087; TIAS 8249);
                ``(B) as an endangered or threatened species under the
            Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.); or
                ``(C) pursuant to any State law that provides for the
            conservation of species that are indigenous to the State and
            are threatened with extinction.''.
            (2) Inclusion of secretary of agriculture.--Section 2(h) of the
        Lacey Act Amendments of 1981 (16 U.S.C. 3371(h)) is amended by
        striking ``plants the term means'' and inserting ``plants, the term
        also means''.
            (3) Taken and taking.--Subsection (j) of section 2 of the Lacey
        Act Amendments of 1981 (16 U.S.C. 3371) is amended to read as
        follows:
        ``(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.''.
        (b) Prohibited Acts.--
            (1) Offenses other than marking.--Section 3(a) of the Lacey Act
        Amendments of 1981 (16 U.S.C. 3372(a)) is amended--
                (A) in paragraph (2), by striking subparagraph (B) and
            inserting the following new subparagraph:
                ``(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 appropriate 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) in paragraph (3), by striking subparagraph (B) and
            inserting the following subparagraph:
                ``(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 appropriate 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''.
            (2) Plant declarations.--Section 3 of the Lacey Act Amendments
        of 1981 (16 U.S.C. 3372) is amended by adding at the end the
        following new subsection:
        ``(f) Plant Declarations.--
            ``(1) Import declaration.--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 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;
                ``(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 one 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; and
                ``(C) in the case in which a paper or paperboard plant
            product includes recycled plant product, contain the average
            percent recycled content without regard for the species or
            country of origin of the recycled plant product, in addition to
            the information for the non-recycled plant content otherwise
            required by this subsection.
            ``(3) Exclusions.--Paragraphs (1) and (2) shall not apply to
        plants used exclusively as packaging material to support, protect,
        or carry another item, unless the packaging material itself is the
        item being imported.
            ``(4) Review.--Not later than two years after the date of
        enactment of this subsection, the Secretary shall review the
        implementation of each requirement imposed by paragraphs (1) and
        (2) and the effect of the exclusion provided by paragraph (3). In
        conducting the review, the Secretary shall provide public notice
        and an opportunity for comment.
            ``(5) Report.--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--
                ``(A) an evaluation of--
                    ``(i) the effectiveness of each type of information
                required under paragraphs (1) and (2) in assisting
                enforcement of this section; and
                    ``(ii) the potential to harmonize each requirement
                imposed by paragraphs (1) and (2) with other applicable
                import regulations in existence as of the date of the
                report;
                ``(B) 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
            this section; and
                ``(C) an analysis of the effect of subsection (a) and this
            subsection on--
                    ``(i) the cost of legal plant imports; and
                    ``(ii) the extent and methodology of illegal logging
                practices and trafficking.
            ``(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 imposed
            by paragraph (2) to specific plant products;
                ``(B) to make any other necessary modification to any
            requirement imposed by paragraph (2), as determined by the
            Secretary based on the review; and
                ``(C) to limit the scope of the exclusion provided by
            paragraph (3), if the limitations in scope are warranted as a
            result of the review.''.
        (c) Cross-References to New Requirement.--Section 4 of the Lacey
    Act Amendments of 1981 (16 U.S.C. 3373) is amended--
            (1) by striking ``subsections (b) and (d)'' each place it
        appears and inserting ``subsections (b), (d), and (f)'';
            (2) by striking ``section 3(d)'' each place it appears and
        inserting ``subsection (d) or (f) of section 3''; and
            (3) in subsection (a)(2), by striking ``subsection 3(b)'' and
        inserting ``subsection (b) or (f) of section 3, except as provided
        in paragraph (1),''.
        (d) Civil Forfeitures.--Section 5 of the Lacey Act Amendments of
    1981 (16 U.S.C. 3374) is amended by adding at the end the following new
    subsection:
        ``(d) Civil Forfeitures.--Civil forfeitures under this section
    shall be governed by the provisions of chapter 46 of title 18, United
    States Code.''.
        (e) Administration.--Section 7 of the Lacey Act Amendments of 1981
    (16 U.S.C. 3376) is amended--
            (1) in subsection (a)(1), by striking ``section 4 and section''
        and inserting ``sections 3(f), 4, and''; and
            (2) by adding at the end the following new subsection:
        ``(c) Clarification of Exclusions From Definition of Plant.--The
    Secretary of Agriculture and the Secretary of the Interior, after
    consultation with the appropriate agencies, shall jointly promulgate
    regulations to define the terms used in section 2(f)(2)(A) for the
    purposes of enforcement under this Act.''.
        (f) Technical Correction.--Effective as of November 14, 1988, and
    as if included therein as enacted, section 102(c) of Public Law 100-653
    (102 Stat. 3825) is amended--
            (1) by inserting ``of the Lacey Act Amendments of 1981'' after
        ``Section 4''; and
            (2) by striking ``(other than section 3(b))'' and inserting
        ``(other than subsection 3(b))''.
    SEC. 8205. HEALTHY FORESTS RESERVE PROGRAM.
        (a) Enrollment.--Section 502 of the Healthy Forests Restoration Act
    of 2003 (16 U.S.C. 6572(f)(1)) is amended--
            (1) by striking subsections (e) and (f);
            (2) by redesignating subsection (g) as subsection (f); and
            (3) by inserting after subsection (d) the following new
        subsection:
        ``(e) Methods of Enrollment.--
            ``(1) Authorized methods.--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)(i) a permanent easement; or
                ``(ii) in a State that imposes a maximum duration for
            easements, an easement for the maximum duration allowed under
            State law.
            ``(2) Limitation on use of cost-share agreements and
        easements.--
                ``(A) In general.--Of the total amount of funds expended
            under the program for a fiscal year to acquire easements and
            enter into cost-share agreements described in paragraph (1)--
                    ``(i) not more than 40 percent shall be used for cost-
                share agreements described in paragraph (1)(A); and
                    ``(ii) not more than 60 percent shall be used for
                easements described in subparagraphs (B) and (C) of
                paragraph (1).
                ``(B) Repooling.--The Secretary may use any funds allocated
            under clause (i) or (ii) of subparagraph (A) that are not
            obligated by April 1 of the fiscal year for which the funds are
            made available to carry out a different method of enrollment
            during that fiscal year.
            ``(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).''.
        (b) Financial Assistance.--Section 504(a) of the Healthy Forests
    Restoration Act of 2003 (16 U.S.C. 6574(a)) is amended by striking
    ``(a) Easements of Not More Than 99 Years'' and all that follows
    through ``502(f)(1)(C)'' and inserting the following:
        ``(a) Permanent Easements.--In the case of land enrolled in the
    healthy forests reserve program using a permanent easement (or an
    easement described in section 502(f)(1)(C)(ii))''.
        (c) Funding.--Section 508 of the Healthy Forests Restoration Act of
    2003 (16 U.S.C. 6578) is amended to read as follows:
        ``SEC. 508. FUNDING.
        ``(a) In General.--Of the funds of the Commodity Credit
    Corporation, the Secretary of Agriculture shall make available
    $9,750,000 for each of fiscal years 2009 through 2012 to carry out this
    title.
        ``(b) Duration of Availability.--The funds made available under
    subsection (a) shall remain available until expended.''.

        Subtitle D--Boundary Adjustments and Land Conveyance Provisions

    SEC. 8301. GREEN MOUNTAIN NATIONAL FOREST BOUNDARY ADJUSTMENT.
        (a) In General.--The boundary of the Green Mountain National Forest
    is modified to include the 13 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. 8302. LAND CONVEYANCES, CHIHUAHUAN DESERT NATURE PARK, NEW MEXICO,
    AND GEORGE WASHINGTON NATIONAL FOREST, VIRGINIA.
        (a) Chihuahuan Desert Nature Park Conveyance.--
            (1) In general.--As soon as practicable after the date of
        enactment of this Act, subject to valid existing rights and
        subsection (b), the Secretary of Agriculture shall convey to the
        Chihuahuan Desert Nature Park, Inc., a nonprofit corporation in the
        State of New Mexico (in this section referred to as the ``Nature
        Park''), by quitclaim deed and 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.
        (b) Conditions.--The conveyance of land under subsection (a) 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 Chihuahuan Desert Nature Park 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 (c); and
            (5) any other terms and conditions that the Secretary
        determines to be appropriate.
        (c) Reversion.--If the land conveyed under subsection (a) is no
    longer used for the purposes described in subsection (b)(4)(A), the
    land may, at the discretion of the Secretary, revert to the United
    States. If the Secretary chooses to have the land revert to the United
    States, the Secretary shall--
            (1) determine whether the land is environmentally contaminated,
        including contamination from hazardous wastes, hazardous
        substances, pollutants, contaminants, petroleum, or petroleum by-
        products; and
            (2) 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.
        (d) Withdrawal.--All federally owned mineral and subsurface rights
    to the land to be conveyed under subsection (a) 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.
        (e) Water Rights.--Nothing in subsection (a) authorizes the
    conveyance of water rights to the Nature Park.
        (f) George Washington National Forest Conveyance, Virginia.--
            (1) Conveyance required.--The Secretary of Agriculture shall
        convey, without consideration, to the Central Advent Christian
        Church of Alleghany County, Virginia (in this subsection referred
        to as the ``recipient''), all right, title, and interest of the
        United States in and to a parcel of real property in the George
        Washington National Forest, Alleghany County, Virginia, consisting
        of not more than 8 acres, including a cemetery encompassing
        approximately 6 acres designated as an area of special use for the
        recipient, and depicted on the Forest Service map showing tract G-
        2032c and dated August 20, 2002, and the Forest Service map showing
        the area of special use and dated March 14, 2001.
            (2) Condition of conveyance.--The conveyance under this
        subsection shall be subject to the condition that the recipient
        accept the real property described in paragraph (1) in its
        condition at the time of the conveyance, commonly known as
        conveyance ``as is''.
            (3) Description of property.--The exact acreage and legal
        description of the real property to be conveyed under this
        subsection shall be determined by a survey satisfactory to the
        Secretary. The cost of the survey shall be borne by the recipient.
            (4) Additional terms and conditions.--The Secretary may require
        such additional terms and conditions in connection with the
        conveyance under this subsection as the Secretary considers
        appropriate to protect the interests of the United States.
    SEC. 8303. 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 of Agriculture 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 E--Miscellaneous Provisions

    SEC. 8401. QUALIFYING TIMBER CONTRACT OPTIONS.
        (a) Definitions.--In this section:
            (1) Authorized producer price index.--The term ``authorized
        Producer Price Index'' includes--
                (A) the softwood commodity index (code number WPU 0811);
                (B) the hardwood commodity index (code number WPU 0812);
                (C) the wood chip index (code number PCU 3211133211135);
            and
                (D) any other subsequent comparable index, as established
            by the Bureau of Labor Statistics of the Department of Labor
            and utilized by the Secretary of Agriculture.
            (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;
                (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 one or more of the options
            described in subsection (b);
                (D) that is not a salvage sale;
                (E) for which the Secretary determines there is not an
            urgent need to harvest due to deteriorating timber conditions
            that developed after the award of the contract; and
                (F) 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 or 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 bid 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 timber
                remaining in the qualifying contract based on bid rates;
                    (ii) completes each contractual obligation (including
                the removal of downed timber, the completion of road work,
                and the completion of erosion control work) of the timber
                purchaser with respect to each unit on which harvest has
                begun to a logical stopping point, as determined by the
                Secretary after consultation with the timber purchaser; and
                    (iii) terminates its rights under the qualifying
                contract; or
                (B) modify the qualifying contract to redetermine the
            current contract 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) Substitution.--Notwithstanding any other provision of
            law, the Secretary may, at the sole discretion of the
            Secretary, substitute the Producer Price Index specified in the
            qualifying contract of a timber purchaser if the timber
            purchaser identifies--
                    (i) the products the timber purchaser intends to
                produce from the timber harvested under the qualifying
                contract; and
                    (ii) a substitute index from an authorized Producer
                Price Index that more accurately represents the predominant
                product identified in clause (i) for which there is an
                index.
                (B) Rate redetermination following substitution of index.--
            If the Secretary substitutes the Producer Price Index of a
            qualifying contract under subparagraph (A), the Secretary may,
            at the sole discretion of the Secretary, modify the qualifying
            contract to provide for--
                    (i) an emergency rate redetermination under the terms
                of the contract; or
                    (ii) a rate redetermination under paragraph (1)(B).
                (C) Limitation on market-related contract term addition;
            periodic payments.--Notwithstanding any other provision of law,
            if the Secretary substitutes the Producer Price Index of a
            qualifying contract under subparagraph (A), the Secretary may,
            at the sole discretion of the Secretary, modify the qualifying
            contract--
                    (i) to adjust the term in accordance with the market-
                related contract term addition provision in the qualifying
                contract and section 223.52 of title 36, Code of Federal
                Regulations, as in effect on the date of the adjustment,
                but only if the drastic reduction criteria in such section
                are met for 2 or more consecutive calendar year quarters
                beginning with the calendar quarter in which the Secretary
                substitutes the Producer Price Index under subparagraph
                (A); and
                    (ii) to adjust the periodic payments required under the
                contract in accordance with applicable law and policies.
            (3) Contracts using hardwood lumber index.--With respect to a
        qualifying contract using the hardwood commodity index referred to
        in subsection (a)(1)(B) for which the Secretary does not substitute
        the Producer Price Index under paragraph (2), the Secretary may, at
        the sole discretion of the Secretary--
                (A) extend the contract term for a 1-year period beginning
            on the current contract termination date; and
                (B) adjust the periodic payments required under the
            contract in accordance with applicable law and policies.
        (c) Extension of Market-Related Contract Term Addition Time Limit
    for Certain Contracts.--Notwithstanding any other provision of law,
    upon the written request of a timber purchaser, the Secretary may, at
    the sole discretion of the Secretary, modify a timber sale contract
    (including a qualifying contract) awarded to the purchaser before
    January 1, 2007, to adjust the term of the contract in accordance with
    the market-related contract term addition provision in the contract and
    section 223.52 of title 36, Code of Federal Regulations, as in effect
    on the date of the modification, except that the Secretary may add no
    more than 4 years to the original contract length.
        (d) Effect of Options.--
            (1) No surrender of claims.--Operation of this section shall
        not have the effect of surrendering any claim by the United States
        against any timber purchaser that arose--
                (A) under a qualifying contract before the date on which
            the Secretary cancels the contract or redetermines the rate
            under subsection (b)(1), substitutes a Producer Price Index
            under subsection (b)(2), or modifies the contract under
            subsection (b)(3); or
                (B) under a timber sale contract, including a qualifying
            contract, before the date on which the Secretary adjusts the
            contract term under subsection (c).
            (2) Release of liability.--In the written request for any
        option provided under subsections (b) and (c), a timber purchaser
        shall release the United States from all liability, including
        further consideration or compensation, resulting from--
                (A) the cancellation of a qualifying contract of the
            purchaser or rate redetermination under subsection (b)(1), the
            substitution of a Producer Price Index under subsection (b)(2),
            the modification of the contract under subsection (b)(3) or a
            determination by the Secretary not to provide the cancellation,
            redetermination, substitution, or modification; or
                (B) the modification of the term of a timber sale contract
            (including a qualifying contract) of the purchaser under
            subsection (c) or a determination by the Secretary not to
            provide the modification.
            (3) Limitation.--Subject to subsection (b)(1)(A), the
        cancellation of a qualifying contract by the Secretary under
        subsection (b)(1) shall release the timber purchaser from further
        obligation under the canceled contract.
    SEC. 8402. HISPANIC-SERVING INSTITUTION AGRICULTURAL LAND NATIONAL
    RESOURCES LEADERSHIP PROGRAM.
        (a) Definition of Hispanic-Serving Institution.--In this section,
    the term ``Hispanic-serving institution'' has the meaning given that
    term in section 502(a)(5) of the Higher Education Act of 1965 (20
    U.S.C. 1101a(a)(5)).
        (b) Grant Authority.--The Secretary of Agriculture may make grants,
    on a competitive basis, to Hispanic-serving institutions for the
    purpose of establishing an undergraduate scholarship program to assist
    in the recruitment, retention, and training of Hispanics and other
    under-represented groups in forestry and related fields.
        (c) Use of Grant Funds.--Grants made under this section shall be
    used to recruit, retain, train, and develop professionals to work in
    forestry and related fields with Federal agencies, such as the Forest
    Service, State agencies, and private-sector entities.
        (d) Authorization of Appropriations.--There are authorized to be
    appropriated to the Secretary for each of fiscal years 2008 through
    2012 such sums as may be necessary to carry out this section.

                                TITLE IX--ENERGY

    SEC. 9001. ENERGY.
        (a) In General.--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 kernel starch.
                ``(B) Inclusions.--Subject to subparagraph (A), 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 kernel starch);
                    ``(iii) biofuel derived from waste material, including
                crop residue, other vegetative waste material, animal
                waste, 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 a facility
        (including equipment and processes) that--
                ``(A) converts 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 invasive
            species from National Forest System land and public lands (as
            defined in section 103 of the Federal Land Policy and
            Management Act of 1976 (43 U.S.C. 1702)) that--
                    ``(i) are byproducts of preventive treatments 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 in accordance with--

                        ``(I) applicable law and land management plans; and
                        ``(II) the requirements for--

                            ``(aa) 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
                            ``(bb) 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); and
                        ``(IV) 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) 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) Procurement preference.--
                ``(A) In general.--
                    ``(i) Procuring agency duties.--Except as provided in
                clause (ii) and subparagraph (B), after the date specified
                in applicable guidelines prepared pursuant to paragraph
                (3), each procuring agency shall--

                        ``(I) establish a procurement program, develop
                    procurement specifications, and procure biobased
                    products identified under the guidelines described in
                    paragraph (3) in accordance with this section; and
                        ``(II) with respect to items described in the
                    guidelines, give a procurement preference to those
                    items that--

                            ``(aa) are composed of the highest percentage
                        of biobased products practicable; or
                            ``(bb) comply with the regulations issued under
                        section 103 of Public Law 100-556 (42 U.S.C. 6914b-
                        1).
                    ``(ii) Exception.--The requirements of clause (i)(I) to
                establish a procurement program and develop procurement
                specifications shall not apply to a person described in
                paragraph (1)(B).
                ``(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) Minimum requirements.--Each procurement program
            required under this subsection shall, at a minimum--
                    ``(i) be consistent with applicable provisions of
                Federal procurement law;
                    ``(ii) ensure that items composed of biobased products
                will be purchased to the maximum extent practicable;
                    ``(iii) include a component to promote the procurement
                program;
                    ``(iv) provide for an annual review and monitoring of
                the effectiveness of the procurement program; and
                    ``(v) adopt 1 of the 2 polices described in
                subparagraph (D) or (E), or a policy substantially
                equivalent to either of those policies.
                ``(D) Case-by-case policy.--
                    ``(i) In general.--Subject to subparagraph (B) and
                except as provided in clause (ii), a procuring agency
                adopting the case-by-case policy shall award a contract to
                the vendor offering an item composed of the highest
                percentage of biobased products practicable.
                    ``(ii) Exception.--Subject to subparagraph (B), an
                agency adopting the policy described in clause (i) may make
                an award to a vendor offering items with less than the
                maximum biobased products content.
                ``(E) Minimum content standards.--Subject to subparagraph
            (B), a procuring agency adopting the minimum content standards
            policy shall establish minimum biobased products content
            specifications for awarding contracts in a manner that ensures
            that the biobased products content required is consistent with
            this subsection.
                ``(F) Certification.--After the date specified in any
            applicable guidelines prepared pursuant to paragraph (3),
            contracting offices shall require that 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.
            ``(3) 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 (including finished
                products) 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) that
                will be subject to the preference described in paragraph
                (2);
                    ``(ii) designate those intermediate ingredients and
                feedstocks that are or can be used to produce items that
                will be subject to the preference described in paragraph
                (2);
                    ``(iii) automatically designate items composed of
                intermediate ingredients and feedstocks designated under
                clause (ii), if the content of the designated intermediate
                ingredients and feedstocks exceeds 50 percent of the item
                (unless the Secretary determines a different composition
                percentage is appropriate);
                    ``(iv) set forth recommended practices with respect to
                the procurement of biobased products and items containing
                such materials;
                    ``(v) provide information as to the availability,
                relative price, performance, and environmental and public
                health benefits of such materials and items; and
                    ``(vi) take effect on the date established in the
                guidelines, which may not exceed 1 year after publication.
                ``(C) Information provided.--Information provided pursuant
            to subparagraph (B)(v) 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) Qualifying purchases.--The guidelines shall apply
            with respect to any purchase or acquisition of a procurement
            item for which--
                    ``(i) the purchase price of the item exceeds $10,000;
                or
                    ``(ii) the quantity of the items or of functionally-
                equivalent items purchased or acquired during the preceding
                fiscal year was at least $10,000.
            ``(4) 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 informing Federal
                agencies concerning, and promoting 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; 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 paragraph (2);
                        ``(II) the results of the annual review and
                    monitoring program established under paragraph
                    (2)(C)(iv);
                        ``(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) 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)
                    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 information
                concerning, to the maximum extent practicable, the types
                and dollar value of biobased products purchased by
                procuring agencies.
                ``(C) Procurement subject to other law.--Any procurement by
            any Federal agency that is subject to regulations of the
            Administrator under section 6002 of the Solid Waste Disposal
            Act (42 U.S.C. 6962) shall not be subject to the requirements
            of this section to the extent that the requirements are
            inconsistent with the regulations.
        ``(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 the Food, Conservation, and Energy
                Act of 2008 and 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 that Act) 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 that Act) by the Secretary.
                ``(B) Requirements.--Criteria issued under subparagraph (A)
            shall--
                    ``(i) encourage the purchase of products with the
                maximum biobased content;
                    ``(ii) 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, be
                consistent with the guidelines issued under subsection
                (a)(3).
            ``(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).
        ``(c) Recognition.--The Secretary shall--
            ``(1) establish a program to recognize Federal agencies and
        private entities that use a substantial amount of biobased
        products; and
            ``(2) encourage Federal agencies to establish incentives
        programs to recognize Federal employees or contractors that make
        exceptional contributions to the expanded use of biobased products.
        ``(d) Limitation.--Nothing in this section shall apply to the
    procurement of motor vehicle fuels, heating oil, or electricity.
        ``(e) Inclusion.--Effective beginning on the date that is 90 days
    after the date of enactment of the Food, Conservation, and Energy Act
    of 2008, the Architect of the Capitol, the Sergeant at Arms of the
    Senate, and the Chief Administrative Officer of the House of
    Representatives shall consider the biobased product designations made
    under this section in making procurement decisions for the Capitol
    Complex.
        ``(f) National Testing Center Registry.--The Secretary shall
    establish a national registry of testing centers for biobased products
    that will serve biobased product manufacturers.
        ``(g) Reports.--
            ``(1) In general.--Not later than 180 days after the date of
        enactment of the Food, Conservation, and Energy Act of 2008 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) Mandatory funding.--Of the funds of the Commodity Credit
        Corporation, the Secretary shall use to provide mandatory funding
        for biobased products testing and labeling as required to carry out
        this section--
                ``(A) $1,000,000 for fiscal year 2008; and
                ``(B) $2,000,000 for each of fiscal years 2009 through
            2012.
            ``(2) Discretionary funding.--In addition to any other funds
        made available to carry out this section, there is authorized to be
        appropriated to carry out this section $2,000,000 for each of
        fiscal years 2009 through 2012.
    ``SEC. 9003. BIOREFINERY ASSISTANCE.
        ``(a) Purpose.--The purpose of this section is to assist in the
    development of new and emerging technologies for the development of
    advanced biofuels, so as to--
            ``(1) increase the energy independence of the United States;
            ``(2) promote resource conservation, public health, and the
        environment;
            ``(3) diversify markets for agricultural and forestry products
        and agriculture waste material; and
            ``(4) create jobs and enhance the economic development of the
        rural economy.
        ``(b) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' means an
        individual, entity, Indian tribe, or unit of State or local
        government, including a corporation, farm cooperative, farmer
        cooperative organization, association of agricultural producers,
        National Laboratory, institution of higher education, rural
        electric cooperative, public power entity, or consortium of any of
        those entities.
            ``(2) Eligible technology.--The term `eligible technology'
        means, as determined by the Secretary--
                ``(A) a technology that is being adopted in a viable
            commercial-scale operation of a biorefinery that produces an
            advanced biofuel; and
                ``(B) a technology not described in subparagraph (A) that
            has been demonstrated to have technical and economic potential
            for commercial application in a biorefinery that produces an
            advanced biofuel.
        ``(c) Assistance.--The Secretary shall make available to eligible
    entities--
            ``(1) grants to assist in paying the costs of the development
        and construction of demonstration-scale biorefineries to
        demonstrate the commercial viability of 1 or more processes for
        converting renewable biomass to advanced biofuels; and
            ``(2) guarantees for loans made to fund the development,
        construction, and retrofitting of commercial-scale biorefineries
        using eligible technology.
        ``(d) Grants.--
            ``(1) Competitive basis.--The Secretary shall award grants
        under subsection (c)(1) on a competitive basis.
            ``(2) Selection criteria.--
                ``(A) In general.--In approving grant applications, the
            Secretary shall establish a priority scoring system that
            assigns priority scores to each application and only approve
            applications that exceed a specified minimum, as determined by
            the Secretary.
                ``(B) Feasibility.--In approving a grant application, the
            Secretary shall determine the technical and economic
            feasibility of the project based on a feasibility study of the
            project described in the application conducted by an
            independent third party.
                ``(C) Scoring system.--In determining the priority scoring
            system, the Secretary shall consider--
                    ``(i) the potential market for the advanced biofuel and
                the byproducts produced;
                    ``(ii) the level of financial participation by the
                applicant, including support from non-Federal and private
                sources;
                    ``(iii) whether the applicant is proposing to use a
                feedstock not previously used in the production of advanced
                biofuels;
                    ``(iv) whether the applicant is proposing to work with
                producer associations or cooperatives;
                    ``(v) whether the applicant has established that the
                adoption of the process proposed in the application will
                have a positive impact on resource conservation, public
                health, and the environment;
                    ``(vi) the potential for rural economic development;
                    ``(vii) whether the area in which the applicant
                proposes to locate the biorefinery has other similar
                facilities;
                    ``(viii) whether the project can be replicated; and
                    ``(ix) scalability for commercial use.
            ``(3) Cost sharing.--
                ``(A) Limits.--The amount of a grant awarded for
            development and construction of a biorefinery under subsection
            (c)(1) shall not exceed an amount equal to 30 percent of the
            cost of the project.
                ``(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 material.
                    ``(ii) Limitation.--The amount of the grantee share
                that is made in the form of material shall not exceed 15
                percent of the amount of the grantee share determined under
                subparagraph (A).
        ``(e) Loan Guarantees.--
            ``(1) Selection criteria.--
                ``(A) In general.--In approving loan guarantee
            applications, the Secretary shall establish a priority scoring
            system that assigns priority scores to each application and
            only approve applications that exceed a specified minimum, as
            determined by the Secretary.
                ``(B) Feasibility.--In approving a loan guarantee
            application, the Secretary shall determine the technical and
            economic feasibility of the project based on a feasibility
            study of the project described in the application conducted by
            an independent third party.
                ``(C) Scoring system.--In determining the priority scoring
            system for loan guarantees under subsection (c)(2), the
            Secretary shall consider--
                    ``(i) whether the applicant has established a market
                for the advanced biofuel and the byproducts produced;
                    ``(ii) whether the area in which the applicant proposes
                to place the biorefinery has other similar facilities;
                    ``(iii) whether the applicant is proposing to use a
                feedstock not previously used in the production of advanced
                biofuels;
                    ``(iv) whether the applicant is proposing to work with
                producer associations or cooperatives;
                    ``(v) the level of financial participation by the
                applicant, including support from non-Federal and private
                sources;
                    ``(vi) whether the applicant has established that the
                adoption of the process proposed in the application will
                have a positive impact on resource conservation, public
                health, and the environment;
                    ``(vii) whether the applicant can establish that if
                adopted, the biofuels production technology proposed in the
                application will not have any significant negative impacts
                on existing manufacturing plants or other facilities that
                use similar feedstocks;
                    ``(viii) the potential for rural economic development;
                    ``(ix) the level of local ownership proposed in the
                application; and
                    ``(x) whether the project can be replicated.
            ``(2) Limitations.--
                ``(A) Maximum amount of loan guaranteed.--The principal
            amount of a loan guaranteed under subsection (c)(2) may not
            exceed $250,000,000.
                ``(B) Maximum percentage of loan guaranteed.--
                    ``(i) In general.--Except as otherwise provided in this
                subparagraph, a loan guaranteed under subsection (c)(2)
                shall be in an amount not to exceed 80 percent of the
                project costs, as determined by the Secretary.
                    ``(ii) Other direct federal funding.--The amount of a
                loan guaranteed for a project under subsection (c)(2) shall
                be reduced by the amount of other direct Federal funding
                that the eligible entity receives for the same project.
                    ``(iii) Authority to guarantee the loan.--The Secretary
                may guarantee up to 90 percent of the principal and
                interest due on a loan guaranteed under subsection (c)(2).
                ``(C) Loan guarantee fund distribution.--Of the funds made
            available for loan guarantees for a fiscal year under
            subsection (h), 50 percent of the funds shall be reserved for
            obligation during the second half of the fiscal year.
        ``(f) Consultation.--In carrying out this section, the Secretary
    shall consult with the Secretary of Energy.
        ``(g) Condition on Provision of Assistance.--
            ``(1) In general.--As a condition of receiving a grant or loan
        guarantee under this section, an eligible entity shall ensure that
        all laborers and mechanics employed by contractors or
        subcontractors in the performance of construction work financed, in
        whole or in part, with the grant or loan guarantee, as the case may
        be, shall be paid wages at rates not less than those prevailing on
        similar construction in the locality, as determined by the
        Secretary of Labor in accordance with sections 3141 through 3144,
        3146, and 3147 of title 40, United States Code.
            ``(2) Authority and functions.--The Secretary of Labor shall
        have, with respect to the labor standards described in paragraph
        (1), the authority and functions set forth in Reorganization Plan
        Numbered 14 of 1950 (5 U.S.C. App) and section 3145 of title 40,
        United States Code.
        ``(h) Funding.--
            ``(1) Mandatory funding.--Of the funds of the Commodity Credit
        Corporation, the Secretary shall use for the cost of loan
        guarantees under this section, to remain available until expended--
                ``(A) $75,000,000 for fiscal year 2009; and
                ``(B) $245,000,000 for fiscal year 2010.
            ``(2) Discretionary funding.--In addition to any other funds
        made available to carry out this section, there is authorized to be
        appropriated to carry out this section $150,000,000 for each of
        fiscal years 2009 through 2012.
    ``SEC. 9004. REPOWERING ASSISTANCE.
        ``(a) In General.--The Secretary shall carry out a program to
    encourage biorefineries in existence on the date of enactment of the
    Food, Conservation, and Energy Act of 2008 to replace fossil fuels used
    to produce heat or power to operate the biorefineries by making
    payments for--
            ``(1) the installation of new systems that use renewable
        biomass; or
            ``(2) the new production of energy from renewable biomass.
        ``(b) Payments.--
            ``(1) In general.--The Secretary may make payments under this
        section to any biorefinery that meets the requirements of this
        section for a period determined by the Secretary.
            ``(2) Amount.--The Secretary shall determine the amount of
        payments to be made under this section to a biorefinery after
        considering--
                ``(A) the quantity of fossil fuels a renewable biomass
            system is replacing;
                ``(B) the percentage reduction in fossil fuel used by the
            biorefinery that will result from the installation of the
            renewable biomass system; and
                ``(C) the cost and cost effectiveness of the renewable
            biomass system.
        ``(c) Eligibility.--To be eligible to receive a payment under this
    section, a biorefinery shall demonstrate to the Secretary that the
    renewable biomass system of the biorefinery is feasible based on an
    independent feasibility study that takes into account the economic,
    technical and environmental aspects of the system.
        ``(d) Funding.--
            ``(1) Mandatory funding.--Of the funds of the Commodity Credit
        Corporation, the Secretary shall use to make payments under this
        section $35,000,000 for fiscal year 2009, to remain available until
        expended.
            ``(2) Discretionary funding.--In addition to any other funds
        made available to carry out this section, there is authorized to be
        appropriated to carry out this section $15,000,000 for each of
        fiscal years 2009 through 2012.
    ``SEC. 9005. 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 support and ensure an expanding production of advanced
    biofuels.
        ``(c) Contracts.--To receive a payment, an eligible producer
    shall--
            ``(1) enter into a contract with the Secretary for production
        of advanced biofuels; and
            ``(2) submit to the Secretary such records as the Secretary may
        require as evidence of the production of advanced biofuels.
        ``(d) Basis for Payments.--The Secretary shall make payments under
    this section to eligible producers based on--
            ``(1) the quantity and duration of production by the eligible
        producer of an advanced biofuel;
            ``(2) the net nonrenewable energy content of the advanced
        biofuel, if sufficient data is available, as determined by the
        Secretary; and
            ``(3) other appropriate factors, as determined by the
        Secretary.
        ``(e) 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.
        ``(f) 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.
        ``(g) Funding.--
            ``(1) Mandatory funding.--Of the funds of the Commodity Credit
        Corporation, the Secretary shall use to carry out this section, to
        remain available until expended--
                ``(A) $55,000,000 for fiscal year 2009;
                ``(B) $55,000,000 for fiscal year 2010;
                ``(C) $85,000,000 for fiscal year 2011; and
                ``(D) $105,000,000 for fiscal year 2012.
            ``(2) Discretionary funding.--In addition to any other funds
        made available to carry out this section, there is authorized to be
        appropriated to carry out this section $25,000,000 for each of
        fiscal years 2009 through 2012.
            ``(3) Limitation.--Of the funds provided for each fiscal year,
        not more than 5 percent of the funds shall be made available to
        eligible producers for production at facilities with a total
        refining capacity exceeding 150,000,000 gallons per year.
    ``SEC. 9006. BIODIESEL FUEL EDUCATION PROGRAM.
        ``(a) Establishment.--The Secretary shall, under such terms and
    conditions as the Secretary determines to be appropriate, make
    competitive grants to eligible entities to educate governmental and
    private entities that operate vehicle fleets, other interested entities
    (as determined by the Secretary), and the public about the benefits of
    biodiesel fuel use.
        ``(b) Eligible Entities.--To receive a grant under subsection (b),
    an entity shall--
            ``(1) be a nonprofit organization or institution of higher
        education;
            ``(2) have demonstrated knowledge of biodiesel fuel production,
        use, or distribution; and
            ``(3) have demonstrated the ability to conduct educational and
        technical support programs.
        ``(c) Consultation.--In carrying out this section, the Secretary
    shall consult with the Secretary of Energy.
        ``(d) Funding.--Of the funds of the Commodity Credit Corporation,
    the Secretary shall use to carry out this section $1,000,000 for each
    of fiscal years 2008 through 2012.
    ``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 and rural small businesses through--
            ``(1) grants for energy audits and renewable energy development
        assistance; and
            ``(2) financial assistance for energy efficiency improvements
        and renewable energy systems.
        ``(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 technologies and resources.
            ``(2) Eligible entities.--An eligible entity under this
        subsection is--
                ``(A) a unit of State, tribal, or local government;
                ``(B) a land-grant college or university or other
            institution of higher education;
                ``(C) a rural electric cooperative or public power entity;
            and
                ``(D) any other similar entity, as determined by the
            Secretary.
            ``(3) Selection criteria.--In reviewing applications of
        eligible entities to receive grants under paragraph (1), the
        Secretary shall consider--
                ``(A) the ability and expertise of the eligible entity in
            providing professional energy audits and renewable energy
            assessments;
                ``(B) the geographic scope of the program proposed by the
            eligible entity in relation to the identified need;
                ``(C) the number of agricultural producers and rural small
            businesses to be assisted by the program;
                ``(D) the potential of the proposed program to produce
            energy savings and environmental benefits;
                ``(E) the plan of the eligible entity for performing
            outreach and providing information and assistance to
            agricultural producers and rural small businesses on the
            benefits of energy efficiency and renewable energy development;
            and
                ``(F) the ability of the eligible entity to leverage other
            sources of funding.
            ``(4) Use of grant funds.--A recipient of a grant under
        paragraph (1) shall use the grant funds to assist agricultural
        producers and rural small businesses by--
                ``(A) conducting and promoting energy audits; and
                ``(B) providing recommendations and information on how--
                    ``(i) to improve the energy efficiency of the
                operations of the agricultural producers and rural small
                businesses; and
                    ``(ii) to use renewable energy technologies and
                resources in the operations.
            ``(5) Limitation.--Grant recipients may not use more than 5
        percent of a grant for administrative expenses.
            ``(6) 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) 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 and grants 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
        loan guarantee or grant 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;
                ``(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 other 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) Maximum amount of loan guarantees.--The amount of a
            loan guaranteed under this subsection shall not exceed
            $25,000,000.
                ``(C) Maximum amount of combined grant and loan
            guarantee.--The combined amount of a grant and loan guaranteed
            under this subsection shall not exceed 75 percent of the cost
            of the activity funded under this subsection.
        ``(d) Outreach.--The Secretary shall ensure, to the maximum extent
    practicable, that adequate outreach relating to this section is being
    conducted at the State and local levels.
        ``(e) Lower-Cost Activities.--
            ``(1) Limitation on use of funds.--Except as provided in
        paragraph (2), the Secretary shall use not less than 20 percent of
        the funds made available under subsection (g) to provide grants of
        $20,000 or less.
            ``(2) Exception.--Effective beginning on June 30 of each fiscal
        year, paragraph (1) shall not apply to funds made available under
        subsection (g) for the fiscal year.
        ``(f) Report.--Not later than 4 years after the date of enactment
    of the Food, Conservation, and Energy Act of 2008, the Secretary shall
    submit to Congress a report on the implementation of this section,
    including the outcomes achieved by projects funded under this section.
        ``(g) Funding.--
            ``(1) Mandatory funding.--Of the funds of the Commodity Credit
        Corporation, the Secretary shall use to carry out this section, to
        remain available until expended--
                ``(A) $55,000,000 for fiscal year 2009;
                ``(B) $60,000,000 for fiscal year 2010;
                ``(C) $70,000,000 for fiscal year 2011; and
                ``(D) $70,000,000 for fiscal year 2012.
            ``(2) Audit and technical assistance funding.--
                ``(A) In general.--Subject to subparagraph (B), of the
            funds made available for each fiscal year under paragraph (1),
            4 percent shall be available to carry out subsection (b).
                ``(B) Other use.--Funds not obligated under subparagraph
            (A) by April 1 of each fiscal year to carry out subsection (b)
            shall become available to carry out subsection (c).
            ``(3) Discretionary funding.--In addition to any other funds
        made available to carry out this section, there is authorized to be
        appropriated to carry out this section $25,000,000 for each of
        fiscal years 2009 through 2012.
    ``SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT.
        ``(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; or
                ``(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).
        ``(b) Cooperation and Coordination in Biomass Research and
    Development.--
            ``(1) In general.--The Secretary of Agriculture and the
        Secretary of Energy shall coordinate policies and procedures that
        promote research and development regarding the production of
        biofuels and biobased products.
            ``(2) Points of contact.--To coordinate research and
        development programs and activities relating to biofuels and
        biobased products that are carried out by their respective
        departments--
                ``(A) 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
                ``(B) 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.
        ``(c) Biomass Research and Development Board.--
            ``(1) Establishment.--There is established the Biomass Research
        and Development Board to carry out the duties described in
        paragraph (3).
            ``(2) Membership.--The Board shall consist of--
                ``(A) the point of contacts of the Department of Energy and
            the Department of Agriculture, who shall serve as
            cochairpersons of the Board;
                ``(B) 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 have a rank that is equivalent to
            the rank of the points of contact; and
                ``(C) at the option of the Secretary of Agriculture and the
            Secretary of Energy, other members appointed by the Secretaries
            (after consultation with the Board).
            ``(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.
        ``(d) Biomass Research and Development Technical Advisory
    Committee.--
            ``(1) Establishment.--There is established the Biomass Research
        and Development Technical Advisory Committee to carry out the
        duties described in paragraph (3).
            ``(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 environmental or
                conservation organizations;
                    ``(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 and make recommendations in writing to the
            Board regarding whether--
                    ``(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;
                    ``(iii) objectives and evaluation criteria of the
                solicitations are clearly stated and minimally
                prescriptive, with no areas of special interest;
                    ``(iv) 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
                    ``(v) activities under this title are carried out in
                accordance with this title.
            ``(4) Coordination.--To avoid duplication of effort, the
        Advisory Committee shall coordinate its activities with those of
        other Federal advisory committees working in related areas.
            ``(5) Meetings.--The Advisory Committee shall meet at least
        quarterly.
            ``(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--
                ``(A) biofuels and biobased products; and
                ``(B) the methods, practices, and technologies, for the
            production of biofuels and biobased products.
            ``(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
                power;
                    ``(ii) to serve 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 economically and environmentally
            sustainable domestic sources of renewable biomass for
            conversion to biofuels, bioenergy, and biobased products.
            ``(3) Technical areas.--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 the Initiative in the 3 following
        areas:
                ``(A) Feedstocks development.--Research, development, and
            demonstration activities regarding feedstocks and feedstock
            logistics (including the harvest, handling, transport,
            preprocessing, and storage) relevant to production of raw
            materials for conversion to biofuels and biobased products.
                ``(B) Biofuels and biobased products development.--
            Research, development, and demonstration activities to
            support--
                    ``(i) the development of diverse cost-effective
                technologies for the use of cellulosic biomass in the
                production of biofuels and biobased products; and
                    ``(ii) product diversification through technologies
                relevant to production of a range of biobased products
                (including chemicals, animal feeds, and cogenerated power)
                that potentially can increase the feasibility of fuel
                production in a biorefinery.
                ``(C) Biofuels development analysis.--
                    ``(i) Strategic guidance.--The development of analysis
                that provides strategic guidance for the application of
                renewable biomass technologies to improve sustainability
                and environmental quality, cost effectiveness, security,
                and rural economic development.
                    ``(ii) Energy and environmental impact.--Development of
                systematic evaluations of the impact of expanded biofuel
                production on the environment (including forest land) and
                on the food supply for humans and animals, including the
                improvement and development of tools for life cycle
                analysis of current and potential biofuels.
                    ``(iii) Assessment of federal land.--Assessments of the
                potential of Federal land resources to increase the
                production of feedstocks for biofuels and biobased
                products, consistent with the integrity of soil and water
                resources and with other environmental considerations.
            ``(4) Additional considerations.--Within the technical areas
        described in paragraph (3), 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;
                ``(B) to maximize the environmental, economic, and social
            benefits of production of biofuels and derived biobased
            products on a large scale; and
                ``(C) to facilitate small-scale production and local and
            on-farm use of biofuels, including the development of small-
            scale gasification technologies for production of biofuel from
            cellulosic feedstocks.
            ``(5) Eligibility.--To be eligible for a grant, contract, or
        assistance under this section, 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).
            ``(6) 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 based on a scientific peer
                review by an independent panel of scientific and technical
                peers;
                    ``(iii) give special consideration 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 the technical areas described in
                each of subparagraphs (A), (B), and (C) of paragraph (3)
                receive not less than 15 percent of funds made available to
                carry out this section.
                ``(B) Cost share.--
                    ``(i) Research and development projects.--

                        ``(I) In general.--Except as provided in subclause
                    (II), the non-Federal share of the cost of a research
                    or development project under this section shall be not
                    less than 20 percent.
                        ``(II) Reduction.--The Secretary of Agriculture or
                    the Secretary of Energy, as appropriate, may reduce the
                    non-Federal share required under subclause (I) if the
                    appropriate Secretary determines the reduction to be
                    necessary and appropriate.

                    ``(ii) Demonstration and commercial projects.--The non-
                Federal share of the cost of a demonstration or commercial
                project under this section shall be not less than 50
                percent.
                ``(C) Technology and information transfer.--The Secretary
            of Agriculture and the Secretary of Energy shall ensure that
            applicable research results and technologies from the
            Initiative are--
                    ``(i) adapted, made available, and disseminated, as
                appropriate; and
                    ``(ii) included in the best practices database
                established under section 1672C(e) of the Food,
                Agriculture, Conservation, and Trade Act of 1990.
        ``(f) Administrative Support and Funds.--
            ``(1) In general.--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)(B), and the other members of the Board appointed
        under subsection (c)(2)(C), 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.--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--
            ``(1) 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
        is consistent with the objectives and requirements of this section;
            ``(2) the general status of cooperation and research and
        development efforts carried out at each agency with respect to
        biofuels and biobased products; and
            ``(3) 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.
        ``(h) Funding.--
            ``(1) Mandatory funding.--Of the funds of the Commodity Credit
        Corporation, the Secretary of Agriculture shall use to carry out
        this section, to remain available until expended--
                ``(A) $20,000,000 for fiscal year 2009;
                ``(B) $28,000,000 for fiscal year 2010;
                ``(C) $30,000,000 for fiscal year 2011; and
                ``(D) $40,000,000 for fiscal year 2012.
            ``(2) Discretionary funding.--In addition to any other funds
        made available to carry out this section, there is authorized to be
        appropriated to carry out this section $35,000,000 for each of
        fiscal years 2009 through 2012.
    ``SEC. 9009. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE.
        ``(a) Definitions.--In this section:
            ``(1) Eligible rural community.--The term `eligible rural
        community' means a community located in a rural area (as defined in
        section 343(a)(13)(A) of the Consolidated Farm and Rural
        Development Act (7 U.S.C. 1991(a)(13)(A))).
            ``(2) Initiative.--The term `Initiative' means the Rural Energy
        Self-Sufficiency Initiative established under this section.
            ``(3) Integrated renewable energy system.--The term `integrated
        renewable energy system' means a community-wide energy system
        that--
                ``(A) reduces conventional energy use; and
                ``(B) increases the use of energy from renewable sources.
        ``(b) Establishment.--The Secretary shall establish a Rural Energy
    Self-Sufficiency Initiative to provide financial assistance for the
    purpose of enabling eligible rural communities to substantially
    increase the energy self-sufficiency of the eligible rural communities.
        ``(c) Grant Assistance.--
            ``(1) In general.--The Secretary shall make grants available
        under the Initiative to eligible rural communities to carry out an
        activity described in paragraph (2).
            ``(2) Use of grant funds.--An eligible rural community may use
        a grant--
                ``(A) to conduct an energy assessment that assesses the
            total energy use of all energy users in the eligible rural
            community;
                ``(B) to formulate and analyze ideas for reducing energy
            usage by the eligible rural community from conventional
            sources; and
                ``(C) to develop and install an integrated renewable energy
            system.
            ``(3) Grant selection.--
                ``(A) Application.--To be considered for a grant, an
            eligible rural community shall submit an application to the
            Secretary that describes the ways in which the community would
            use the grant to carry out an activity described in paragraph
            (2).
                ``(B) Preference.--The Secretary shall give preference to
            those applications that propose to carry out an activity in
            coordination with--
                    ``(i) institutions of higher education or nonprofit
                foundations of institutions of higher education;
                    ``(ii) Federal, State, or local government agencies;
                    ``(iii) public or private power generation entities; or
                    ``(iv) government entities with responsibility for
                water or natural resources.
            ``(4) Report.--An eligible rural community receiving a grant
        under the Initiative shall submit to the Secretary a report on the
        project of the eligible rural community.
            ``(5) Cost-sharing.--The amount of a grant under the Initiative
        shall not exceed 50 percent of the cost of the activities described
        in the application.
        ``(d) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $5,000,000 for each of fiscal
    years 2009 through 2012.
    ``SEC. 9010. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRODUCERS.
        ``(a) Definitions.--In this section:
            ``(1) Bioenergy.--The term `bioenergy' means fuel grade ethanol
        and other biofuel.
            ``(2) Bioenergy producer.--The term `bioenergy producer' means
        a producer of bioenergy that uses an eligible commodity to produce
        bioenergy under this section.
            ``(3) Eligible commodity.--The term `eligible commodity' means
        a form of raw or refined sugar or in-process sugar that is eligible
        to be marketed in the United States for human consumption or to be
        used for the extraction of sugar for human consumption.
            ``(4) Eligible entity.--The term `eligible entity' means an
        entity located in the United States that markets an eligible
        commodity in the United States.
        ``(b) Feedstock Flexibility Program.--
            ``(1) In general.--
                ``(A) Purchases and sales.--For each of the 2008 through
            2012 crops, 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 section 156 of the Federal Agriculture
            Improvement and Reform Act (7 U.S.C. 7272) is operated at no
            cost to the Federal Government by avoiding 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 such 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 in crop
            years in which such purchases and sales are necessary to ensure
            that the program authorized under section 156 of the Federal
            Agriculture Improvement and Reform Act (7 U.S.C. 7272) is
            operated at no cost to the Federal Government by avoiding
            forfeitures to the Commodity Credit Corporation.
            ``(2) Notice.--
                ``(A) In general.--As soon as practicable after the date of
            enactment of the Food, Conservation, and Energy Act of 2008 and
            each September 1 thereafter through September 1, 2012, 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 crop
            year following the date of the notice under this section.
                ``(B) Reestimates.--Not later than the January 1, April 1,
            and July 1 of the calendar year following the date of a notice
            under subparagraph (A), the Secretary shall reestimate the
            quantity of eligible commodities determined under subparagraph
            (A), and provide notice and make purchases and sales based on
            such reestimates.
            ``(3) Commodity credit corporation inventory.--
                ``(A) Dispositions.--
                    ``(i) Bioenergy and generally.--Except as provided in
                clause (ii), to the extent that an eligible commodity is
                owned and held in inventory by the Commodity Credit
                Corporation (accumulated pursuant to the program authorized
                under section 156 of the Federal Agriculture Improvement
                and Reform Act (7 U.S.C. 7272)), the Secretary shall--

                        ``(I) sell the eligible commodity to bioenergy
                    producers under this section consistent with paragraph
                    (1)(C);
                        ``(II) dispose of the eligible commodity in
                    accordance with section 156(f)(2) of that Act; or
                        ``(III) otherwise dispose of the eligible commodity
                    through the buyback of certificates of quota entry.

                    ``(ii) Preservation of other authorities.--Nothing in
                this section limits the use of other authorities for the
                disposition of an eligible commodity held in the inventory
                of the Commodity Credit Corporation for nonfood use or
                otherwise in a manner that does not increase the net
                quantity of sugar available for human consumption in the
                United States market, consistent with section 156(f)(1) of
                the Federal Agriculture Improvement and Reform Act (7
                U.S.C. 7272(f)(1)).
                ``(B) Emergency shortages.--Notwithstanding subparagraph
            (A), if there is an emergency shortage of sugar for human
            consumption in the United States market that is caused by a
            war, flood, hurricane, or other natural disaster, or other
            similar event, the Secretary may dispose of an eligible
            commodity that is owned and held in inventory by the Commodity
            Credit Corporation (accumulated pursuant to the program
            authorized under section 156 of the Federal Agriculture
            Improvement and Reform Act (7 U.S.C. 7272)) through disposition
            as authorized under section 156(f) of that Act or through the
            use of any other authority of the Commodity Credit Corporation.
            ``(4) Transfer rule; storage fees.--
                ``(A) General transfer rule.--Except with regard to
            emergency dispositions under paragraph (3)(B) and as provided
            in subparagraph (C), the Secretary shall ensure that bioenergy
            producers that purchase eligible commodities pursuant to this
            section take possession of the eligible commodities within 30
            calendar days of the date of such 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 section in a manner that
                ensures no storage fees are paid by the Commodity Credit
                Corporation in the administration of this section.
                    ``(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 authorized under section 156 of the Federal
                Agriculture Improvement and Reform Act (7 U.S.C. 7272)).
                ``(C) Option to prevent storage fees.--
                    ``(i) In general.--The Secretary may enter into
                contracts with bioenergy producers to sell eligible
                commodities to such 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 such commodities
                within 30 calendar days of the date the Commodity Credit
                Corporation purchases the eligible commodities.
            ``(5) 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 payment under this section, the sugar shall be
        considered marketed and shall count against a processor's
        allocation of an allotment under such part, as applicable.
            ``(6) 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 section.
    ``SEC. 9011. BIOMASS CROP ASSISTANCE PROGRAM.
        ``(a) Definitions.--In this section:
            ``(1) BCAP.--The term `BCAP' means the Biomass Crop Assistance
        Program established under this section.
            ``(2) BCAP project area.--The term `BCAP project area' means an
        area that--
                ``(A) has specified boundaries that are submitted to the
            Secretary by the project sponsor and subsequently approved by
            the Secretary;
                ``(B) includes producers with contract acreage that will
            supply a portion of the renewable biomass needed by a biomass
            conversion facility; and
                ``(C) is physically located within an economically
            practicable distance from the biomass conversion facility.
            ``(3) Contract acreage.--The term `contract acreage' means
        eligible land that is covered by a BCAP contract entered into with
        the Secretary.
            ``(4) Eligible crop.--
                ``(A) In general.--The term `eligible crop' means a crop of
            renewable biomass.
                ``(B) Exclusions.--The term `eligible crop' does not
            include--
                    ``(i) any crop that is eligible to receive payments
                under title I of the Food, Conservation, and Energy Act of
                2008 or an amendment made by that title; or
                    ``(ii) any plant that is invasive or noxious or has the
                potential to become invasive or noxious, as determined by
                the Secretary, in consultation with other appropriate
                Federal or State departments and agencies.
            ``(5) Eligible land.--
                ``(A) In general.--The term `eligible land' includes
            agricultural and nonindustrial private forest lands (as defined
            in section 5(c) of the Cooperative Forestry Assistance Act of
            1978 (16 U.S.C. 2103a(c))).
                ``(B) Exclusions.--The term `eligible land' does not
            include--
                    ``(i) Federal- or State-owned land;
                    ``(ii) land that is native sod, as of the date of
                enactment of the Food, Conservation, and Energy Act of
                2008;
                    ``(iii) land enrolled in the conservation reserve
                program established under subchapter B of chapter 1 of
                subtitle D of title XII of the Food Security Act of 1985
                (16 U.S.C. 3831 et seq.);
                    ``(iv) land enrolled in the wetlands reserve program
                established under subchapter C of chapter 1 of subtitle D
                of title XII of that Act (16 U.S.C. 3837 et seq.); or
                    ``(v) land enrolled in the grassland reserve program
                established under subchapter D of chapter 2 of subtitle D
                of title XII of that Act (16 U.S.C. 3838n et seq.).
            ``(6) Eligible material.--
                ``(A) In general.--The term `eligible material' means
            renewable biomass.
                ``(B) Exclusions.--The term `eligible material' does not
            include--
                    ``(i) any crop that is eligible to receive payments
                under title I of the Food, Conservation, and Energy Act of
                2008 or an amendment made by that title;
                    ``(ii) animal waste and byproducts (including fats,
                oils, greases, and manure);
                    ``(iii) food waste and yard waste; or
                    ``(iv) algae.
            ``(7) Producer.--The term `producer' means an owner or operator
        of contract acreage that is physically located within a BCAP
        project area.
            ``(8) Project sponsor.--The term `project sponsor' means--
                ``(A) a group of producers; or
                ``(B) a biomass conversion facility.
        ``(b) Establishment and Purpose.--The Secretary shall establish and
    administer a Biomass Crop Assistance Program to--
            ``(1) support the establishment and production of eligible
        crops for conversion to bioenergy in selected BCAP project areas;
        and
            ``(2) assist agricultural and forest land owners and operators
        with collection, harvest, storage, and transportation of eligible
        material for use in a biomass conversion facility.
        ``(c) BCAP Project Area.--
            ``(1) In general.--The Secretary shall provide financial
        assistance to producers of eligible crops in a BCAP project area.
            ``(2) Selection of project areas.--
                ``(A) In general.--To be considered for selection as a BCAP
            project area, a project sponsor shall submit to the Secretary a
            proposal that includes, at a minimum--
                    ``(i) a description of the eligible land and eligible
                crops of each producer that will participate in the
                proposed BCAP project area;
                    ``(ii) a letter of commitment from a biomass conversion
                facility that the facility will use the eligible crops
                intended to be produced in the proposed BCAP project area;
                    ``(iii) evidence that the biomass conversion facility
                has sufficient equity available, as determined by the
                Secretary, if the biomass conversion facility is not
                operational at the time the proposal is submitted to the
                Secretary; and
                    ``(iv) any other appropriate information about the
                biomass conversion facility or proposed biomass conversion
                facility that gives the Secretary a reasonable assurance
                that the plant will be in operation by the time that the
                eligible crops are ready for harvest.
                ``(B) BCAP project area selection criteria.--In selecting
            BCAP project areas, the Secretary shall consider--
                    ``(i) the volume of the eligible crops proposed to be
                produced in the proposed BCAP project area and the
                probability that such crops will be used for the purposes
                of the BCAP;
                    ``(ii) the volume of renewable biomass projected to be
                available from sources other than the eligible crops grown
                on contract acres;
                    ``(iii) the anticipated economic impact in the proposed
                BCAP project area;
                    ``(iv) the opportunity for producers and local
                investors to participate in the ownership of the biomass
                conversion facility in the proposed BCAP project area;
                    ``(v) the participation rate by--

                        ``(I) beginning farmers or ranchers (as defined in
                    accordance with section 343(a) of the Consolidated Farm
                    and Rural Development Act (7 U.S.C. 1991(a))); or
                        ``(II) socially disadvantaged farmers or ranchers
                    (as defined in section 2501(e) of the Food,
                    Agriculture, Conservation, and Trade Act of 1990 (7
                    U.S.C. 2279(e)));

                    ``(vi) the impact on soil, water, and related
                resources;
                    ``(vii) the variety in biomass production approaches
                within a project area, including (as appropriate)--

                        ``(I) agronomic conditions;
                        ``(II) harvest and postharvest practices; and
                        ``(III) monoculture and polyculture crop mixes;

                    ``(viii) the range of eligible crops among project
                areas; and
                    ``(ix) any additional information, as determined by the
                Secretary.
            ``(3) Contract.--
                ``(A) In general.--On approval of a BCAP project area by
            the Secretary, each producer in the BCAP project area shall
            enter into a contract directly with the Secretary.
                ``(B) Minimum terms.--At a minimum, contracts shall include
            terms that cover--
                    ``(i) an agreement to make available to the Secretary,
                or to an institution of higher education or other entity
                designated by the Secretary, such information as the
                Secretary considers to be appropriate to promote the
                production of eligible crops and the development of biomass
                conversion technology;
                    ``(ii) compliance with the highly erodible land
                conservation requirements of subtitle B of title XII of the
                Food Security Act of 1985 (16 U.S.C. 3811 et seq.) and the
                wetland conservation requirements of subtitle C of title
                XII of that Act (16 U.S.C. 3821 et seq.);
                    ``(iii) the implementation of (as determined by the
                Secretary)--

                        ``(I) a conservation plan; or
                        ``(II) a forest stewardship plan or an equivalent
                    plan; and

                    ``(iv) any additional requirements the Secretary
                considers appropriate.
                ``(C) Duration.--A contract under this subsection shall
            have a term of up to--
                    ``(i) 5 years for annual and perennial crops; or
                    ``(ii) 15 years for woody biomass.
            ``(4) Relationship to other programs.--In carrying out this
        subsection, the Secretary shall provide for the preservation of
        cropland base and yield history applicable to the land enrolled in
        a BCAP contract.
            ``(5) Payments.--
                ``(A) In general.--The Secretary shall make establishment
            and annual payments directly to producers to support the
            establishment and production of eligible crops on contract
            acreage.
                ``(B) Amount of establishment payments.--The amount of an
            establishment payment under this subsection shall be up to 75
            percent of the costs of establishing an eligible perennial crop
            covered by the contract, including--
                    ``(i) the cost of seeds and stock for perennials;
                    ``(ii) the cost of planting the perennial crop, as
                determined by the Secretary; and
                    ``(iii) in the case of nonindustrial private
                forestland, the costs of site preparation and tree
                planting.
                ``(C) Amount of annual payments.--
                    ``(i) In general.--Subject to clause (ii), the amount
                of an annual payment under this subsection shall be
                determined by the Secretary.
                    ``(ii) Reduction.--The Secretary shall reduce an annual
                payment by an amount determined to be appropriate by the
                Secretary, if--

                        ``(I) an eligible crop is used for purposes other
                    than the production of energy at the biomass conversion
                    facility;
                        ``(II) an eligible crop is delivered to the biomass
                    conversion facility;
                        ``(III) the producer receives a payment under
                    subsection (d);
                        ``(IV) the producer violates a term of the
                    contract; or
                        ``(V) there are such other circumstances, as
                    determined by the Secretary to be necessary to carry
                    out this section.

        ``(d) Assistance With Collection, Harvest, Storage, and
    Transportation.--
            ``(1) In general.--The Secretary shall make a payment for the
        delivery of eligible material to a biomass conversion facility to--
                ``(A) a producer of an eligible crop that is produced on
            BCAP contract acreage; or
                ``(B) a person with the right to collect or harvest
            eligible material.
            ``(2) Payments.--
                ``(A) Costs covered.--A payment under this subsection shall
            be in an amount described in subparagraph (B) for--
                    ``(i) collection;
                    ``(ii) harvest;
                    ``(iii) storage; and
                    ``(iv) transportation to a biomass conversion facility.
                ``(B) Amount.--Subject to paragraph (3), the Secretary may
            provide matching payments at a rate of $1 for each $1 per ton
            provided by the biomass conversion facility, in an amount equal
            to not more than $45 per ton for a period of 2 years.
            ``(3) Limitation on assistance for bcap contract acreage.--As a
        condition of the receipt of annual payment under subsection (c), a
        producer receiving a payment under this subsection for collection,
        harvest, storage or transportation of an eligible crop produced on
        BCAP acreage shall agree to a reduction in the annual payment.
        ``(e) Report.--Not later than 4 years after the date of enactment
    of the Food, Conservation, and Energy Act of 2008, 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 dissemination by the Secretary of the best practice
    data and information gathered from participants receiving assistance
    under this section.
        ``(f) Funding.--Of the funds of the Commodity Credit Corporation,
    the Secretary shall use to carry out this section such sums as are
    necessary for each of fiscal years 2008 through 2012.
    ``SEC. 9012. FOREST BIOMASS FOR ENERGY.
        ``(a) In General.--The Secretary, acting through the Forest
    Service, shall conduct a competitive research and development program
    to encourage use of forest biomass for energy.
        ``(b) Eligible Entities.--Entities eligible to compete under the
    program under this section include--
            ``(1) the Forest Service (acting through Research and
        Development);
            ``(2) other Federal agencies;
            ``(3) State and local governments;
            ``(4) Indian tribes;
            ``(5) land-grant colleges and universities; and
            ``(6) private entities.
        ``(c) Priority for Project Selection.--In carrying out this
    section, the Secretary shall give priority to projects that--
            ``(1) develop technology and techniques to use low-value forest
        biomass, 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 forest biomass into biorefineries or other existing
        manufacturing streams;
            ``(3) develop new transportation fuels from forest 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 $15,000,000 for each of fiscal
    years 2009 through 2012.
    ``SEC. 9013. COMMUNITY WOOD ENERGY PROGRAM.
        ``(a) Definitions.--In this section:
            ``(1) Community wood energy plan.--The term `community wood
        energy plan' means an assessment of--
                ``(A) available feedstocks necessary to supply a community
            wood energy system; and
                ``(B) the long-term feasibility of supplying and operating
            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) primarily services public facilities owned or
                operated by State or local governments, including 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) to develop community wood energy
            plans; and
                ``(B) competitive grants to State and local governments to
            acquire or upgrade community wood energy systems.
            ``(2) Considerations.--In selecting applicants for grants under
        paragraph (1)(B), the Secretary shall consider--
                ``(A) the energy efficiency of the proposed system;
                ``(B) the cost effectiveness of the proposed system; and
                ``(C) other conservation and environmental criteria that
            the Secretary considers appropriate.
            ``(3) Use of plan.--A State or local government applying to
        receive a competitive grant described in paragraph (1)(B) shall
        submit to the Secretary as part of the grant application the
        applicable community wood energy plan.
        ``(c) 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.
        ``(d) Matching Funds.--A State or local government that receives a
    grant under subsection (b) shall contribute an amount of non-Federal
    funds towards the 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.
        ``(e) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $5,000,000 for each of fiscal
    years 2009 through 2012.''.
        (b) Conforming Amendment.--The Biomass Research and Development Act
    of 2000 (7 U.S.C. 8601 et seq.) is repealed.
    SEC. 9002. BIOFUELS INFRASTRUCTURE STUDY.
        (a) In General.--The Secretary of Agriculture, the Secretary of
    Energy, the Administrator of the Environmental Protection Agency, and
    the Secretary of Transportation (referred to in this section as the
    ``Secretaries''), shall jointly conduct a study that includes--
            (1) an assessment of the infrastructure needs for expanding the
        domestic production, transport, and distribution of biofuels given
        current and likely future market trends;
            (2) recommendations for infrastructure needs and development
        approaches, taking into account cost and other associated factors;
        and
            (3) a report that includes--
                (A) a summary of infrastructure needs;
                (B) an analysis of alternative development approaches to
            meeting the needs described in subparagraph (A), including
            cost, siting, and other regulatory issues; and
                (C) recommendations for specific infrastructure development
            actions to be taken.
        (b) Scope of Study.--
            (1) In general.--In conducting the study described in
        subsection (a), the Secretaries shall address--
                (A) current and likely future market trends for biofuels
            through calendar year 2025;
                (B) current and future availability of feedstocks;
                (C) water resource needs, including water requirements for
            biorefineries;
                (D) shipping and storage needs for biomass feedstock and
            biofuels, including the adequacy of rural roads; and
                (E) modes of transportation and delivery for biofuels
            (including shipment by rail, truck, pipeline or barge) and
            associated infrastructure issues.
            (2) Considerations.--In addressing the issues described in
        paragraph (1), the Secretaries shall consider--
                (A) the effects of increased tank truck, rail, and barge
            transport on existing infrastructure and safety;
                (B) the feasibility of shipping biofuels through pipelines
            in existence as the date of enactment of this Act;
                (C) the development of new biofuels pipelines, including
            siting, financing, timing, and other economic issues;
                (D) the implications of various biofuel blend levels on
            infrastructure needs;
                (E) the implications of various approaches to
            infrastructure development on resource use and conservation;
                (F) regional differences in biofuels infrastructure needs;
            and
                (G) other infrastructure issues, as determined by the
            Secretaries.
        (c) Implementation.--In carrying out this section, the Secretaries
    --
            (1) shall--
                (A) consult with individuals and entities with interest or
            expertise in the areas described in subsection (b);
                (B) to the extent available, use the information developed
            and results of the related studies authorized under sections
            243 and 245 of the Energy Independence and Security Act of 2007
            (Public Law 110-140; 121 Stat. 1540, 1546)); and
                (C) submit to Congress the report required under subsection
            (a)(3), including--
                    (i) in the Senate--

                        (I) the Committee on Agriculture, Nutrition, and
                    Forestry ;
                        (II) the Committee on Commerce, Science, and
                    Transportation;
                        (III) the Committee on Energy and Natural
                    Resources; and
                        (IV) the Committee on Environment and Public Works;
                    and

                    (ii) in the House of Representatives--

                        (I) the Committee on Agriculture;
                        (II) the Committee on Energy and Commerce;
                        (III) the Committee on Transportation and
                    Infrastructure; and
                        (IV) the Committee on Science and Technology; and

            (2) may issue a solicitation for a competition to select a
        contractor to support the Secretaries.
    SEC. 9003. RENEWABLE FERTILIZER STUDY.
        (a) In General.--Not later than 1 year after the date of receipt of
    appropriations to carry out this section, the Secretary shall--
            (1) conduct a study to assess the current state of knowledge
        regarding the potential for the production of fertilizer from
        renewable energy sources in rural areas, including--
                (A) identification of the critical challenges to
            commercialization of rural production of nitrogen and
            phosphorus-based fertilizer from renewables;
                (B) the most promising processes and technologies for
            renewable fertilizer production;
                (C) the potential cost-competitiveness of renewable
            fertilizer; and
                (D) the potential impacts of renewable fertilizer on fossil
            fuel use and the environment; and
            (2) 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
        study.
        (b) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $1,000,000 for fiscal year 2009.

                 TITLE X--HORTICULTURE AND ORGANIC AGRICULTURE

    SEC. 10001. DEFINITIONS.
        In this title:
            (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 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.

               Subtitle A--Horticulture Marketing and Information

    SEC. 10101. INDEPENDENT EVALUATION OF DEPARTMENT OF AGRICULTURE
    COMMODITY PURCHASE PROCESS.
        (a) Evaluation Required.--The Secretary shall arrange to have
    performed an independent evaluation of the purchasing processes
    (including the budgetary, statutory, and regulatory authority
    underlying the processes) used by the Department of Agriculture to
    implement the requirement that funds available under section 32 of the
    Act of August 24, 1935 (7 U.S.C. 612c), shall be principally devoted to
    perishable agricultural commodities.
        (b) Submission of Results.--Not later than 18 months 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 on the results of the evaluation.
    SEC. 10102. 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,''.
    SEC. 10103. INCLUSION OF SPECIALTY CROPS IN CENSUS OF AGRICULTURE.
        Section 2(a) of the Census of Agriculture Act of 1997 (7 U.S.C.
    2204g(a)) is amended--
            (1) by striking ``In 1998'' and inserting the following:
            ``(1) In general.--In 1998''; and
            (2) by adding at the end the following:
            ``(2) Inclusion of specialty crops.--Effective beginning with
        the census of agriculture required to be conducted in 2008, the
        Secretary shall conduct as part of each census of agriculture a
        census of specialty crops (as that term is defined in section 3 of
        the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621
        note; Public Law 108-465)).''.
    SEC. 10104. 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 limit of 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 as follows:
                    ``(i) If the annual production of a region is greater
                than 110,000,000 pounds, but less than or equal to
                180,000,000 pounds, the region shall be represented by 1
                additional member.
                    ``(ii) If the annual production of a region is greater
                than 180,000,000 pounds, but less than or equal to
                260,000,000 pounds, the region shall be represented by 2
                additional members.
                    ``(iii) If the annual production of a 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 and propose to the Secretary programs for good
        agricultural and good handling practices and related activities for
        mushrooms;''.
    SEC. 10105. FOOD SAFETY EDUCATION 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 sanitary 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 for
    each of fiscal years 2008 through 2012, to remain available until
    expended.
    SEC. 10106. 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)--
                (A) in subparagraph (A), by inserting ``agri-tourism
            activities,'' after ``programs,''; and
                (B) in subparagraph (B)--
                    (i) by inserting ``agri-tourism activities,'' after
                ``programs,'' and
                    (ii) 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.--
            ``(1) In general.--Of the funds of the Commodity Credit
        Corporation, the Secretary shall use to carry out this section--
                ``(A) $3,000,000 for fiscal year 2008;
                ``(B) $5,000,000 for each of fiscal years 2009 through
            2010; and
                ``(C) $10,000,000 for each of fiscal years 2011 and 2012.
            ``(2) Use of funds.--Not less than 10 percent of the funds used
        to carry out this section in a fiscal year under paragraph (1)
        shall be used to support the use of electronic benefits transfers
        for Federal nutrition programs at farmers' markets.
            ``(3) Interdepartmental coordination.--In carrying out this
        subsection, the Secretary shall ensure coordination between the
        various agencies to the maximum extent practicable.
            ``(4) Limitation.--Funds described in paragraph (2)--
                ``(A) may not be used for the ongoing cost of carrying out
            any project; and
                ``(B) 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.''.
    SEC. 10107. SPECIALTY CROPS MARKET NEWS ALLOCATION.
        (a) In General.--The Secretary shall--
            (1) carry out market news activities to provide timely price
        and shipment information of specialty crops in the United States;
        and
            (2) use funds made available under subsection (b) to increase
        the reporting levels for specialty crops in effect on the date of
        enactment of this Act.
        (b) Authorization of Appropriations.--In addition to any other
    funds made available through annual appropriations for market news
    services, 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. 10108. 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.
    SEC. 10109. SPECIALTY CROP BLOCK GRANTS.
        (a) Definition of Specialty Crop.--Section 3(1) of the Specialty
    Crops Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 1621
    note) is amended by inserting ``horticulture and'' before ``nursery''.
        (b) Definition of State.--Section 3(2) of the Specialty Crops
    Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 1621 note) 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''.
        (c) Specialty Crop Block Grants.--Section 101 of the Specialty
    Crops Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 1621
    note) is amended--
            (1) in subsection (a)--
                (A) by striking ``Subject to the appropriation of funds to
            carry out this section'' and inserting ``Using the funds made
            available under subsection (j)''; and
                (B) by striking ``2009'' and inserting ``2012'';
            (2) in subsection (b), by striking ``appropriated pursuant to
        the authorization of appropriations in subsection (i)'' and
        inserting ``made available under subsection (j)'';
            (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 equal to the higher of--
            ``(1) $100,000; or
            ``(2) \1/3\ of 1 percent of the total amount of funding made
        available to carry out this section for the fiscal year.''; and
            (4) by striking subsection (i) and inserting the following:
        ``(i) Reallocation.--
            ``(1) In general.--The Secretary shall reallocate to other
        States in accordance with paragraph (2) any amounts made available
        for a fiscal year under this section that are not obligated or
        expended by a date during that fiscal year determined by the
        Secretary.
            ``(2) Pro rata allocation.--The Secretary shall allocate funds
        described in paragraph (1) pro rata to the remaining States that
        applied during the specified grant application period.
            ``(3) Use of reallocated funds.--Funds allocated to a State
        under this subsection shall be used by the State only to carry out
        projects that were previously approved in the State plan of the
        State.
        ``(j) Funding.--Of the funds of the Commodity Credit Corporation,
    the Secretary of Agriculture shall make grants under this section,
    using--
            ``(1) $10,000,000 for fiscal year 2008;
            ``(2) $49,000,000 for fiscal year 2009; and
            ``(3) $55,000,000 for each of fiscal years 2010 through
        2012.''.

                    Subtitle B--Pest and Disease Management

    SEC. 10201. PLANT PEST AND DISEASE MANAGEMENT AND DISASTER PREVENTION.
        (a) In General.--Subtitle A of the Plant Protection Act (7 U.S.C.
    7711 et seq.) is amended by adding at the end the following:
        ``SEC. 420. PLANT PEST AND DISEASE MANAGEMENT AND DISASTER
          PREVENTION.
        ``(a) Definitions.--In this section:
            ``(1) 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--
                ``(A) the plant pests become established; or
                ``(B) the plant pest infestations become too large and
            costly to eradicate or control.
            ``(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).
            ``(3) 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.
        ``(b) Early Plant Pest Detection and Surveillance Improvement
    Program.--
            ``(1) 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.
            ``(2) Consultation.--In carrying out this subsection, the
        Secretary shall consult with--
                ``(A) the National Plant Board; and
                ``(B) other interested parties.
            ``(3) Federal advisory committee act.--The Federal Advisory
        Committee Act (5 U.S.C. App.) shall not apply to consultations
        under this subsection.
            ``(4) Application.--
                ``(A) In general.--A State department of agriculture
            seeking to enter into a cooperative agreement under this
            subsection shall submit to the Secretary an application
            containing such information as the Secretary may require.
                ``(B) Notification.--The Secretary shall notify applicants
            of--
                    ``(i) the requirements to be imposed on a State
                department of agriculture for auditing of, and reporting
                on, the use of any funds provided by the Secretary under
                the cooperative agreement;
                    ``(ii) the criteria to be used to ensure that early
                pest detection and surveillance activities supported under
                the cooperative agreement are based on sound scientific
                data or thorough risk assessments; and
                    ``(iii) the means of identifying pathways of pest
                introductions.
            ``(5) Use of funds.--
                ``(A) Plant pest detection and surveillance activities.--A
            State department of agriculture that receives funds under this
            subsection shall use the funds to carry out early plant pest
            detection and surveillance activities approved by the Secretary
            to prevent the introduction or spread of a plant pest.
                ``(B) Subagreements.--Nothing in this subsection prevents a
            State department of agriculture from using funds received under
            paragraph (4) to enter into subagreements with political
            subdivisions of the State that have legal responsibilities
            relating to agricultural plant pest and disease surveillance.
                ``(C) 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.
                ``(D) Ability to provide funds.--The Secretary shall not
            take the ability to provide non-Federal costs to carry out a
            cooperative agreement entered into under subparagraph (A) into
            consideration when deciding whether to enter into a cooperative
            agreement with a State department of agriculture.
            ``(6) Special funding considerations.--The Secretary shall
        provide funds to a State department of agriculture if the Secretary
        determines that--
                ``(A) the State department of agriculture is in a State
            that has a high risk of being affected by 1 or more plant pests
            or diseases, taking into consideration--
                    ``(i) the number of international ports of entry in the
                State;
                    ``(ii) the volume of international passenger and cargo
                entry into the State;
                    ``(iii) the geographic location of the State and if the
                location or types of agricultural commodities produced in
                the State are conducive to agricultural pest and disease
                establishment due to the climate, crop diversity, or
                natural resources (including unique plant species) of the
                State; and
                    ``(iv) whether the Secretary has determined that an
                agricultural pest or disease in the State is a Federal
                concern ; and
                ``(B) 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.
            ``(7) Reporting requirement.--Not later than 90 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 section, the State
        department of agriculture shall submit to the Secretary a report
        that describes the purposes and results of the activities.
        ``(c) Threat Identification and Mitigation Program.--
            ``(1) Establishment.--The Secretary shall establish a threat
        identification and mitigation program to determine and address
        threats to the domestic production of crops.
            ``(2) Requirements.--In conducting the program established
        under paragraph (1), the Secretary shall--
                ``(A) develop risk assessments of the potential threat to
            the agricultural industry of the United States from foreign
            sources;
                ``(B) collaborate with the National Plant Board; and
                ``(C) implement action plans for high consequence plant
            pest and diseases to assist in preventing the introduction and
            widespread dissemination of new plant pest and disease threats
            in the United States.
            ``(3) 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 on the action plans described in
        paragraph (2), including an accounting of funds expended on the
        action plans.
        ``(d) 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--
            ``(1) audit-based certification systems, such as best
        management practices--
                ``(A) to address plant pests; and
                ``(B) to mitigate the risk of plant pests in the movement
            of plants and plant products; and
            ``(2) nursery plant pest risk management systems, in
        collaboration with the nursery industry, research institutions, and
        other appropriate entities--
                ``(A) to enable growers to identify and prioritize nursery
            plant pests and diseases of regulatory significance;
                ``(B) to prevent the introduction, establishment, and
            spread of those plant pests and diseases; and
                ``(C) to reduce the risk of and mitigate those plant pests
            and diseases.
        ``(e) Funding.--Of the funds of the Commodity Credit Corporation,
    the Secretary shall make available to carry out this section--
            ``(1) $12,000,000 for fiscal year 2009;
            ``(2) $45,000,000 for fiscal year 2010;
            ``(3) $50,000,000 for fiscal year 2011; and
            ``(4) $50,000,000 for fiscal year 2012 and each fiscal year
        thereafter.''.
        (b) Congressional Disapproval.--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.
    SEC. 10202. NATIONAL 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, land grant
        universities, and NLGCA Institutions (as defined in section 1404 of
        the National Agricultural Research, Extension, and Teaching Policy
        Act of 1977 (7 U.S.C. 3103)); 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 $5,000,000 for each of
    fiscal years 2009 through 2012, to remain available until expended.
    SEC. 10203. PLANT PROTECTION.
        (a) Review of Payment of Compensation.--Section 415(e) of the Plant
    Protection Act (7 U.S.C. 7715(e)) is amended in the second sentence by
    striking ``of longer than 60 days''.
        (b) Secretarial Discretion.--Section 442(c) of the Plant Protection
    Act (7 U.S.C. 7772(c)) is amended by striking ``of longer than 60
    days''.
        (c) Subpoena Authority.--Section 423 of the Plant Protection Act (7
    U.S.C. 7733) is amended--
            (1) by striking subsection (a) and inserting the following:
        ``(a) Authority to Issue.--The Secretary shall have the power to
    subpoena the attendance and testimony of any witness, the production of
    all evidence (including books, papers, documents, electronically stored
    information, and other tangible things that constitute or contain
    evidence), or to require the person to whom the subpoena is directed to
    permit the inspection of premises relating to the administration or
    enforcement of this title or any matter under investigation in
    connection with this title.'';
            (2) in subsection (b), by striking ``documentary''; and
            (3) in subsection (c)--
                (A) in the first sentence, by striking ``testimony of any
            witness and the production of documentary evidence'' and
            inserting ``testimony of any witness, the production of
            evidence, or the inspection of premises''; and
                (B) in the second sentence, by striking ``question or to
            produce documentary evidence'' and inserting ``question,
            produce evidence, or permit the inspection of premises''.
        (d) Willful Violations.--Section 424(b)(1)(A) of the Plant
    Protection Act (7 U.S.C. 7734(b)(1)(A)) is amended by striking ``and
    $500,000 for all violations adjudicated in a single proceeding'' and
    inserting ``$500,000 for all violations adjudicated in a single
    proceeding if the violations do not include a willful violation, and
    $1,000,000 for all violations adjudicated in a single proceeding if the
    violations include a willful violation''.
    SEC. 10204. 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--
            (1) take action on each issue identified in the document
        entitled ``Lessons Learned and Revisions under Consideration for
        APHIS' Biotechnology Framework'', dated October 4, 2007; and
            (2) as the Secretary considers appropriate, promulgate
        regulations to improve the management and oversight of articles
        regulated under the Plant Protection Act (7 U.S.C. 7701 et seq.).
        (b) Inclusions.--In carrying out subsection (a), the Secretary
    shall take actions 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 distances;
            (8) standards for quality management systems and effective
        research; and
            (9) the design of electronic permits to store documents and
        other information relating to the permit and notification
        processes.
        (c) Consideration.--In carrying out 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. 10205. PEST AND DISEASE 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 Pest and Disease
        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 ``Pest and
    Disease 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
                plant pests.
                (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 to finance purchases of
                authorized equipment in accordance with subparagraph (A);
                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. 10206. COOPERATIVE AGREEMENTS RELATING TO PLANT PEST AND DISEASE
    PREVENTION ACTIVITIES.
        Section 431 of the Plant Protection Act (7 U.S.C. 7751) is amended
    by adding at the end the following:
        ``(f) Transfer of Cooperative Agreement Fund.--
            ``(1) In general.--A State may provide to a unit of local
        government in the State described in paragraph (2) any cost-sharing
        assistance or financing mechanism provided to the State under a
        cooperative agreement entered into under this Act between the
        Secretary and the State relating to the eradication, prevention,
        control, or suppression of plant pests.
            ``(2) Requirements.--To be eligible for assistance or financing
        under paragraph (1), a unit of local government shall be--
                ``(A) engaged in any activity relating to the eradication,
            prevention, control, or suppression of the plant pest
            infestation covered under the cooperative agreement between the
            Secretary and the State; and
                ``(B) capable of documenting each plant pest infestation
            eradication, prevention, control, or suppression activity
            generally carried out by--
                    ``(i) the Department of Agriculture; or
                    ``(ii) the State department of agriculture that has
                jurisdiction over the unit of local government.''.

                        Subtitle C--Organic Agriculture

    SEC. 10301. 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--
            (1) in subsection (a), by striking ``$5,000,000 for fiscal year
        2002'' and inserting ``$22,000,000 for fiscal year 2008'';
            (2) in subsection (b)(2), by striking ``$500'' and inserting
        ``$750''; and
            (3) by adding at the end the following:
        ``(c) Reporting.--Not later than March 1 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 describes the requests by,
    disbursements to, and expenditures for each State under the program
    during the current and previous fiscal year, including the number of
    producers and handlers served by the program in the previous fiscal
    year.''.
    SEC. 10302. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.
        Section 7407 of the Farm Security and Rural Investment Act of 2002
    (7 U.S.C. 5925c) is amended to read as follows:
    ``SEC. 7407. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.
        ``(a) In General.--The Secretary shall collect and report data on
    the production and marketing of organic agricultural products.
        ``(b) Requirements.--In carrying out subsection (a), the Secretary
    shall, at a minimum--
            ``(1) collect and distribute comprehensive reporting of prices
        relating to organically produced agricultural products;
            ``(2) conduct surveys and analysis and publish reports relating
        to organic production, handling, distribution, retail, and trend
        studies (including consumer purchasing patterns); and
            ``(3) develop surveys and report statistical analysis on
        organically produced agricultural products.
        ``(c) Report.--Not later than 180 days after the date of enactment
    of this subsection, 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 progress that has been made in implementing
        this section; and
            ``(2) identifies any additional production and marketing data
        needs.
        ``(d) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit
        Corporation, the Secretary shall use to carry out this section
        $5,000,000, to remain available until expended.
            ``(2) Additional funding.--In addition to funds made available
        under paragraph (1), there are authorized to be appropriated to
        carry out this section not more than $5,000,000 for each of fiscal
        years 2008 through 2012, to remain available until expended.''.
    SEC. 10303. 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 activities 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;
            ``(5) $11,000,000 for fiscal year 2012; and
            ``(6) in addition to those amounts, such additional sums as are
        necessary for fiscal year 2009 and each fiscal year thereafter.''.

                           Subtitle D--Miscellaneous

    SEC. 10401. 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) Definition of existing honey board.--The term
            `existing Honey Board' means the Honey Board in effect on the
            date of enactment of this paragraph.
                ``(B) Conduct of referenda.--Notwithstanding any other
            provision of law, subject to subparagraph (C), the order
            providing for the establishment and operation of the existing
            Honey Board shall continue in force, until the Secretary first
            conducts, at the earliest practicable date, but not later than
            180 days after the date of enactment of this paragraph,
            referenda on orders to establish a honey packer-importer board
            or a United States honey producer board.
                ``(C) Requirements.--In conducting referenda under
            subparagraph (B), and in exercising fiduciary responsibilities
            in any transition to any 1 or more successor boards, the
            Secretary shall--
                    ``(i) conduct a referendum of eligible United States
                honey producers for the establishment of a marketing board
                solely for United States honey producers;
                    ``(ii) conduct a referendum of eligible packers,
                importers, and handlers of honey for the establishment of a
                marketing board for packers, importers, and handlers of
                honey;
                    ``(iii) notwithstanding the timing of the referenda
                required under clauses (i) and (ii) or of the establishment
                of any 1 or more successor boards pursuant to those
                referenda, ensure that the rights and interests of honey
                producers, importers, packers, and handlers of honey are
                equitably protected in any disposition of the assets,
                facilities, intellectual property, and programs of the
                existing Honey Board and in the transition to any 1 or more
                new successor marketing boards;
                    ``(iv) ensure that the existing Honey Board continues
                in operation until such time as the Secretary determines
                that--

                        ``(I) any 1 or more successor boards, if approved,
                    are operational; and
                        ``(II) the interests of producers, importers,
                    packers, and handlers of honey can be equitably
                    protected during any remaining period in which a
                    referendum on a successor board or the establishment of
                    such a board is pending; and

                    ``(v) discontinue collection of assessments under the
                order establishing the existing Honey Board on the date the
                Secretary requires that collections commence pursuant to an
                order approved in a referendum by eligible producers or
                processors and importers of honey.
                ``(D) Honey board referendum.--If 1 or more orders are
            approved pursuant to paragraph (C)--
                    ``(i) the Secretary shall not be required to conduct a
                continuation referendum on the order in existence on the
                date of enactment of this paragraph; and
                    ``(ii) that order shall be terminated pursuant to the
                provisions of the order.''.
    SEC. 10402. IDENTIFICATION OF HONEY.
        (a) In General.--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.--
                ``(A) In general.--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 is hereby
            prohibited under this Act unless there appears legibly and
            permanently in close proximity (such as on the same side(s) or
            surface(s)) 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 the words `Product of' or other words of similar meaning.
                ``(B) Violation.--A violation of the requirements of
            subparagraph (A) may be deemed by the Secretary to be
            sufficient cause for debarment from the benefits of this Act
            only with respect to honey.''.
        (b) Effective Date.--The amendments made by subsection (a) take
    effect on the date that is 1 year after the date of enactment of this
    Act.
    SEC. 10403. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY CROPS.
        (a) Grants Authorized.--The Secretary 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 Grant Recipients.--Grants may be made under this
    section to any of, or any combination of:
            (1) State and local governments.
            (2) Grower cooperatives.
            (3) National, State, or regional organizations of producers,
        shippers, or carriers.
            (4) Other entities as determined to be appropriate by the
        Secretary.
        (c) Matching Funds.--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 to carry out this section such sums as are necessary for
    each of fiscal years 2008 through 2012.
    SEC. 10404. 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.

                              TITLE XI--LIVESTOCK

    SEC. 11001. LIVESTOCK MANDATORY REPORTING.
        (a) Web Site Improvements and User Education.--
            (1) In general.--Section 251(g) of the Agricultural Marketing
        Act of 1946 (7 U.S.C. 1636(g)) is amended to read as follows:
        ``(g) Electronic Reporting and Publishing.--
            ``(1) In general.--The Secretary shall, to the maximum extent
        practicable, provide for the reporting and publishing of the
        information required under this subtitle by electronic means.
            ``(2) Improvements and education.--
                ``(A) Enhanced electronic publishing.--The Secretary shall
            develop and implement an enhanced system of electronic
            publishing to disseminate information collected pursuant to
            this subtitle. Such system shall--
                    ``(i) present information in a format that can be
                readily understood by producers, packers, and other market
                participants;
                    ``(ii) adhere to the publication deadlines in this
                subtitle;
                    ``(iii) present information in charts and graphs, as
                appropriate;
                    ``(iv) present comparative information for prior
                reporting periods, as the Secretary considers appropriate;
                and
                    ``(v) be updated as soon as practicable after
                information is reported to the Secretary.
                ``(B) Education.--The Secretary shall carry out a market
            news education program to educate the public and persons in the
            livestock and meat industries about--
                    ``(i) usage of the system developed under subparagraph
                (A); and
                    ``(ii) interpreting and understanding information
                collected and disseminated through such system.''.
            (2) Applicability.--
                (A) Enhanced reporting.--The Secretary of Agriculture shall
            develop and implement the system required under paragraph
            (2)(A) of section 251(g) of the Agricultural Marketing Act of
            1946 (7 U.S.C. 1636(g)), as amended by paragraph (1), not later
            than one year after the date on which the Secretary determines
            sufficient funds have been appropriated pursuant to subsection
            (c).
                (B) Current system.--Notwithstanding the amendment made by
            paragraph (1), the Secretary shall continue to use the
            information format for disseminating information under subtitle
            B of the Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et
            seq.) in effect on the date of the enactment of this Act at
            least until the date that is two years after the date on which
            the Secretary makes the determination referred to in
            subparagraph (A).
        (b) Study and Report.--
            (1) Study.--The Secretary shall conduct a study on the effects
        of requiring packer processing plants to report to the Secretary
        information on wholesale pork cuts (including price and volume
        information), including--
                (A) the positive or negative economic effects on producers
            and consumers; and
                (B) the effects of a confidentiality requirement on
            mandatory reporting.
            (2) Information.--During the period preceding the submission of
        the report under paragraph (3), the Secretary may collect, and each
        packer processing plant shall provide, such information as is
        necessary to enable the Secretary to conduct the study required
        under paragraph (1).
            (3) Report.--Not later than one year 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 on the
        results of the study conducted under paragraph (1).
        (c) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as may be necessary to carry out this section.
    SEC. 11002. 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;
                    ``(ix) ginseng;
                    ``(x) pecans; and
                    ``(xi) 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 July
                15, 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, or aboard a vessel that is documented under
                    chapter 121 of title 46, United States Code, or
                    registered in the United States.

                ``(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, ginseng, peanuts, pecans, and macadamia
        nuts.--
                ``(A) In general.--A retailer of a covered commodity that
            is a perishable agricultural commodity, ginseng, peanut, pecan,
            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, ginseng, peanut, pecan, or macadamia
            nut 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.''; and
            (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. 11003. AGRICULTURAL FAIR PRACTICES ACT OF 1967 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 whose membership is exclusively
            limited to agricultural producers and dedicated to promoting
            the common interest and general welfare of producers of
            agricultural products.''; and
            (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 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.''.
    SEC. 11004. ANNUAL REPORT.
        (a) In General.--The Packers and Stockyards Act, 1921, is amended--
            (1) by redesignating section 416 (7 U.S.C. 229) as section 417;
        and
            (2) by inserting after section 415 (7 U.S.C. 228d) the
        following:
        ``SEC. 416. ANNUAL REPORT.
        ``(a) In General.--Not later than March 1 of each year, the
    Secretary shall submit to Congress and make publicly available a report
    that--
            ``(1) states, for the preceding year, separately for livestock
        and poultry and separately by enforcement area category (financial,
        trade practice, or competitive acts and practices), with respect to
        investigations into possible violations of this Act--
                ``(A) the number of investigations opened;
                ``(B) the number of investigations that were closed or
            settled without a referral to the General Counsel of the
            Department of Agriculture;
                ``(C) for investigations described in subparagraph (B), the
            length of time from initiation of the investigation to when the
            investigation was closed or settled without the filing of an
            enforcement complaint;
                ``(D) the number of investigations that resulted in
            referral to the General Counsel of the Department of
            Agriculture for further action, the number of such referrals
            resolved without administrative enforcement action, and the
            number of enforcement actions filed by the General Counsel;
                ``(E) for referrals to the General Counsel that resulted in
            an administrative enforcement action being filed, the length of
            time from the referral to the filing of the administrative
            action;
                ``(F) for referrals to the General Counsel that resulted in
            an administrative enforcement action being filed, the length of
            time from filing to resolution of the administrative
            enforcement action;
                ``(G) the number of investigations that resulted in
            referral to the Department of Justice for further action, and
            the number of civil enforcement actions filed by the Department
            of Justice on behalf of the Secretary pursuant to such a
            referral;
                ``(H) for referrals that resulted in a civil enforcement
            action being filed by the Department of Justice, the length of
            time from the referral to the filing of the enforcement action;
                ``(I) for referrals that resulted in a civil enforcement
            action being filed by the Department of Justice, the length of
            time from the filing of the enforcement action to resolution;
            and
                ``(J) the average civil penalty imposed in administrative
            or civil enforcement actions for violations of this Act, and
            the total amount of civil penalties imposed in all such
            enforcement actions; and
            ``(2) includes any other additional information the Secretary
        considers important to include in the annual report.
        ``(b) Format of Information Provided.--For subparagraphs (C), (E),
    (F), and (H) of subsection (a)(1), the Secretary may, if appropriate
    due to the number of complaints for a given category, provide summary
    statistics (including range, maximum, minimum, mean, and average times)
    and graphical representations.''.
        (b) Sunset.--Effective September 30, 2012, section 416 of the
    Packers and Stockyards Act, 1921, as added by subsection (a)(2), is
    repealed.
    SEC. 11005. 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 poultry grower or swine production
        contract grower may cancel a poultry growing arrangement or swine
        production contract by mailing a cancellation notice to the live
        poultry dealer or swine contractor not later than the later of--
                ``(A) the date that is 3 business days after the date on
            which the poultry growing arrangement or swine production
            contract is executed; or
                ``(B) any cancellation date specified in the poultry
            growing arrangement or swine production contract.
            ``(2) Disclosure.--A poultry growing arrangement or swine
        production contract shall clearly disclose--
                ``(A) the right of the poultry grower or swine production
            contract grower to cancel the poultry growing arrangement or
            swine production contract;
                ``(B) the method by which the poultry grower or swine
            production contract grower may cancel the poultry growing
            arrangement or swine production contract; and
                ``(C) the deadline for canceling the poultry growing
            arrangement or swine production contract.
        ``(b) Required Disclosure of Additional Capital Investments in
    Production Contracts.--
            ``(1) In general.--A poultry growing arrangement or swine
        production contract shall contain on the first page a statement
        identified as `Additional Capital Investments Disclosure
        Statement', which shall conspicuously state that additional large
        capital investments may be required of the poultry grower or swine
        production contract grower during the term of the poultry growing
        arrangement or swine production contract.
            ``(2) Application.--Paragraph (1) shall apply to any poultry
        growing arrangement or swine production contract entered into,
        amended, altered, modified, renewed, or extended after the date of
        the enactment of this section.
        ``SEC. 209. CHOICE OF LAW AND VENUE.
        ``(a) Location of Forum.--The forum for resolving any dispute among
    the parties to a poultry growing arrangement or swine production or
    marketing contract that arises out of the arrangement or contract shall
    be located in the Federal judicial district in which the principle part
    of the performance takes place under the arrangement or contract.
        ``(b) Choice of Law.--A poultry growing arrangement or swine
    production or marketing contract may specify which State's law is to
    apply to issues governed by State law in any dispute arising out of the
    arrangement or contract, except to the extent that doing so is
    prohibited by the law of the State in which the principal part of the
    performance takes place under the arrangement or contract.
        ``SEC. 210. ARBITRATION.
        ``(a) In General.--Any livestock or poultry contract that contains
    a provision requiring the use of arbitration to resolve any controversy
    that may arise under the contract shall contain a provision that allows
    a producer or grower, prior to entering the contract to decline to be
    bound by the arbitration provision.
        ``(b) Disclosure.--Any livestock or poultry contract that contains
    a provision requiring the use of arbitration shall contain terms that
    conspicuously disclose the right of the contract producer or grower,
    prior to entering the contract, to decline the requirement to use
    arbitration to resolve any controversy that may arise under the
    livestock or poultry contract.
        ``(c) Dispute Resolution.--Any contract producer or grower that
    declines a requirement of arbitration pursuant to subsection (b) has
    the right, to nonetheless seek to resolve any controversy that may
    arise under the livestock or poultry contract, if, after the
    controversy arises, both parties consent in writing to use arbitration
    to settle the controversy.
        ``(d) Application.--Subsections (a) (b) and (c) shall apply to any
    contract entered into, amended, altered, modified, renewed, or extended
    after the date of the enactment of the Food, Conservation, and Energy
    Act of 2008 .
        ``(e) Unlawful Practice.--Any action by or on behalf of a packer,
    swine contractor, or live poultry dealer that violates this section
    (including any action that has the intent or effect of limiting the
    ability of a producer or grower to freely make a choice described in
    subsection (b)) is an unlawful practice under this Act.
        ``(f) Regulations.--The Secretary shall promulgate regulations to--
            ``(1) carry out this section; and
            ``(2) establish criteria that the Secretary will consider in
        determining whether the arbitration process provided in a contract
        provides a meaningful opportunity for the grower or producer to
        participate fully in the arbitration process.''.
    SEC. 11006. REGULATIONS.
        As soon as practicable, but not later than 2 years after the date
    of the enactment of this Act, the Secretary of Agriculture shall
    promulgate regulations with respect to the Packers and Stockyards Act,
    1921 (7 U.S.C. 181 et seq.) to establish criteria that the Secretary
    will consider in determining--
            (1) whether an undue or unreasonable preference or advantage
        has occurred in violation of such Act;
            (2) whether a live poultry dealer has provided reasonable
        notice to poultry growers of any suspension of the delivery of
        birds under a poultry growing arrangement;
            (3) when a requirement of additional capital investments over
        the life of a poultry growing arrangement or swine production
        contract constitutes a violation of such Act; and
            (4) if a live poultry dealer or swine contractor has provided a
        reasonable period of time for a poultry grower or a swine
        production contract grower to remedy a breach of contract that
        could lead to termination of the poultry growing arrangement or
        swine production contract.
    SEC. 11007. SENSE OF CONGRESS REGARDING PSEUDORABIES ERADICATION
    PROGRAM.
        It is the sense of Congress that--
            (1) the Secretary of Agriculture should recognize the threat
        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) the establishment and continued support of a swine
        surveillance system will assist the swine industry in the
        monitoring, surveillance, and eradication of pseudorabies; and
            (4) pseudorabies eradication is a high priority that the
        Secretary should carry out under the authorities of the Animal
        Health Protection Act.
    SEC. 11008. SENSE OF CONGRESS REGARDING THE 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 of
        Agriculture should carry out in order to--
                (A) prevent the entry of cattle fever ticks into the United
            States;
                (B) enhance and maintain an effective surveillance program
            to rapidly detect any cattle fever tick incursions; and
                (C) research, identify, and procure the tools and knowledge
            necessary to prevent and eradicate cattle fever ticks in the
            United States.
    SEC. 11009. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.
        (a) 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.''.
        (b) 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. 11010. TRICHINAE CERTIFICATION PROGRAM.
        (a) Voluntary Trichinae Certification.--
            (1) Establishment.--Not later than 90 days after the date of
        the enactment of this Act, the Secretary of Agriculture shall
        establish a voluntary trichinae certification program. Such program
        shall include the facilitation of the export of pork products and
        certification services related to such products.
            (2) Regulations.--The Secretary shall issue final regulations
        to implement the program under paragraph (1) not later than 90 days
        after the date of the enactment of this Act.
            (3) Report.--If final regulations are not published in
        accordance with paragraph (2) within 90 days of 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
        containing--
                (A) an explanation of why the final regulations have not
            been issued in accordance with paragraph (2); and
                (B) the date on which the Secretary expects to issue such
            final regulations.
        (b) Funding.--Subject to the availability of appropriations under
    subsection (d)(1)(A) of section 10405 of the Animal Health Protection
    Act (7 U.S.C. 8304), as added by subsection (c), the Secretary shall
    use not less than $6,200,000 of the funds made available under such
    subsection to carry out subsection (a).
        (c) Authorization of Appropriations.--Section 10405 of the Animal
    Health Protection Act (7 U.S.C. 8304) is amended by adding at the end
    the following new subsection:
        ``(d) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated--
                ``(A) $1,500,000 for each of fiscal years 2008 through 2012
            to carry out section 11010 of the Food, Conservation, and
            Energy Act of 2008; and
                ``(B) such sums as may be necessary for each of fiscal
            years 2008 through 2012 to carry out this section.
            ``(2) Availability.--Funds appropriated under paragraph (1)
        shall remain available until expended.''.
    SEC. 11011. LOW PATHOGENIC DISEASES.
        The Animal Health Protection Act (7 U.S.C. 8301 et seq.) is
    amended--
            (1) in section 10407(d)(2)(C) (7 U.S.C. 8306(d)(2)(C)), by
        striking ``of longer than 60 days'';
            (2) in section 10409(b) (7 U.S.C. 8308(b))--
                (A) by redesignating paragraph (2) as paragraph (3);
                (B) by inserting after paragraph (1) the following new
            paragraph:
            ``(2) Specific cooperative programs.--The Secretary shall
        compensate industry participants and State agencies that cooperate
        with the Secretary in carrying out operations and measures under
        subsection (a) for 100 percent of eligible costs relating to
        cooperative programs involving Federal, State, and industry
        participants to control diseases of low pathogenicity in accordance
        with regulations issued by the Secretary.''; and
                (C) in paragraph (3) (as so redesignated), by striking ``of
            longer than 60 days''; and
            (3) in section 10417(b)(3) (7 U.S.C. 8316(b)(3)), by striking
        ``of longer than 60 days''.
    SEC. 11012. ANIMAL PROTECTION.
        (a) Willful Violations.--Section 10414(b)(1)(A) of the Animal
    Health Protection Act (7 U.S.C. 8316(b)(1)(A)) is amended by striking
    clause (iii) and inserting the following:
                    ``(iii) for all violations adjudicated in a single
                proceeding--

                        ``(I) $500,000 if the violations do not include a
                    willful violation; or
                        ``(II) $1,000,000 if the violations include 1 or
                    more willful violations.''.

        (b) Subpoena Authority.--Section 10415(a)(2) of the Animal Health
    Protection Act (7 U.S.C. 8314) is amended
            (1) by striking subparagraph (A) and inserting the following:
                ``(A) In general.--The Secretary shall have the power to
            subpoena the attendance and testimony of any witness, the
            production of all evidence (including books, papers, documents,
            electronically stored information, and other tangible things
            that constitute or contain evidence), or to require the person
            to whom the subpoena is directed to permit the inspection of
            premises relating to the administration or enforcement of this
            title or any matter under investigation in connection with this
            title.'';
            (2) in subparagraph (B), by striking ``documentary''; and
            (3) in subparagraph (C)--
                (A) in clause (i), by striking ``testimony of any witness
            and the production of documentary evidence'' and inserting
            ``testimony of any witness, the production of evidence, or the
            inspection of premises''; and
                (B) in clause (ii), by striking ``question or to produce
            documentary evidence'' and inserting ``question, produce
            evidence, or permit the inspection of premises''.
    SEC. 11013. NATIONAL AQUATIC ANIMAL HEALTH PLAN.
        (a) In General.--The Secretary of Agriculture may enter into a
    cooperative agreement with an eligible entity to carry out a project
    under a national aquatic animal health plan under the authority of the
    Secretary under section 10411 of the Animal Health Protection Act (7
    U.S.C. 8310) for the purpose of detecting, controlling, or eradicating
    diseases of aquaculture species and promoting species-specific best
    management practices.
        (b) Cooperative Agreements Between Eligible Entities and the
    Secretary.--
            (1) Duties.--As a condition of entering into a cooperative
        agreement with the Secretary under this section, an eligible entity
        shall agree to--
                (A) assume responsibility for the non-Federal share of the
            cost of carrying out the project under the national aquatic
            health plan, as determined by the Secretary in accordance with
            paragraph (2); and
                (B) act in accordance with applicable disease and species
            specific best management practices relating to activities to be
            carried out under such project.
            (2) Non-federal share.--The Secretary shall determine the non-
        Federal share of the cost of carrying out a project under the
        national aquatic health plan on a case-by-case basis for each such
        project. Such non-Federal share may be provided in cash or in-kind.
        (c) Applicability of Other Laws.--In carrying out this section, the
    Secretary may make use of the authorities under the Animal Health
    Protection Act (7 U.S.C. 8301 et seq.), including the authority to
    carry out operations and measures to detect, control, and eradicate
    pests and diseases and the authority to pay claims arising out of the
    destruction of any animal, article, or means of conveyance.
        (d) Authorization of Appropriations.--There is authorized to be
    appropriated such sums as may be necessary to carry out this section
    for each of fiscal years 2008 through 2012.
        (e) Eligible Entity Defined.--In this section, the term ``eligible
    entity'' means a State, a political subdivision of a State, Indian
    tribe, or other appropriate entity, as determined by the Secretary of
    Agriculture.
    SEC. 11014. STUDY ON BIOENERGY OPERATIONS.
        (a) Study.--The Secretary of Agriculture shall conduct a study to
    evaluate the role of animal manure as a source of fertilizer and its
    potential additional uses. Such study shall include--
            (1) a determination of the extent to which animal manure is
        utilized as fertilizer in agricultural operations by type
        (including species and agronomic practices employed) and size;
            (2) an evaluation of the potential impact on consumers and on
        agricultural operations (by size) resulting from limitations being
        placed on the utilization of animal manure as fertilizer; and
            (3) an evaluation of the effects on agriculture production
        contributable to the increased competition for animal manure use
        due to bioenergy production, including as a feedstock or a
        replacement for fossil fuels.
        (b) Report.--Not later than one year 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 the results of the
    study conducted under subsection (a).
    SEC. 11015. 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 rules and regulations issued under this Act.
            ``(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, including rules and regulations issued
            under 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--
                ``(A) the carcass, portion of carcass, or meat item
            qualifies for the mark, stamp, tag, or label of inspection
            under the requirements of this Act;
                ``(B) the establishment is an eligible establishment; and
                ``(C) inspection services for the establishment are
            provided by designated personnel.
            ``(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 the 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 the enactment of this section;
            or
                ``(iii) was a State establishment as of the date of the
            enactment of this section that--
                    ``(I) as of the date of the 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 the 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 the 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.--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.
        ``(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 3 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 the 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 to ship carcasses, portions of carcasses, or meat
            items under this section.
        ``(f) Technical Assistance 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 a technical assistance 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 technical assistance 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 technical assistance division; and
                ``(B) possess appropriate qualifications and expertise
            relating to the duties of the technical assistance 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
        the 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 rules and regulations issued under this Act.
            ``(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, including rules and regulations issued
            under 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--
                ``(A) the poultry item qualifies for the Federal mark,
            stamp, tag, or label of inspection under the requirements of
            this Act;
                ``(B) the establishment is an eligible establishment; and
                ``(C) inspection services for the establishment are
            provided by designated personnel.
            ``(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 the enactment of this section,
            ships in interstate commerce carcasses, portions of carcasses,
            or 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 the
            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 the enactment of this section; or
                ``(iii) was a State establishment as of the date of the
            enactment of this section that--
                    ``(I) as of the date of the 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 the 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 the 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.--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.
        ``(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 3 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 the 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 to ship poultry items 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
        the enactment of this section, the Secretary shall promulgate final
        regulations in accordance with paragraph (1).''.
    SEC. 11016. INSPECTION AND GRADING.
        (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 new
        subsection:
        ``(n) Grading Program.--To establish within the Department of
    Agriculture a voluntary fee based grading program for--
            ``(1) catfish (as defined by the Secretary under paragraph (2)
        of section 1(w) of the Federal Meat Inspection Act (21 U.S.C.
        601(w))); and
            ``(2) any additional species of farm-raised fish or farm-raised
        shellfish--
                ``(A) for which the Secretary receives a petition
            requesting such voluntary fee based grading; and
                ``(B) that the Secretary considers appropriate.''.
        (b) Inspection.--
            (1) In general.--The Federal Meat Inspection Act is amended--
                (A) in section 1(w) (21 U.S.C. 601(w)) --
                    (i) by striking ``and'' at the end of paragraph (1);
                    (ii) by redesignating paragraph (2) as paragraph (3);
                and
                    (iii) by inserting after paragraph (1) the following
                new paragraph:
            ``(2) catfish, as defined by the Secretary; and'';
                (B) by striking section 6 (21 U.S.C. 606) and inserting the
            following new section:
        ``Sec. 6. (a) In General.--For the purposes hereinbefore set forth
    the Secretary shall cause to be made, by inspectors appointed for that
    purpose, an examination and inspection of all meat food products
    prepared for commerce in any slaughtering, meat-canning, salting,
    packing, rendering, or similar establishment, and for the purposes of
    any examination and inspection and inspectors shall have access at all
    times, by day or night, whether the establishment be operated or not,
    to every part of said establishment; and said inspectors shall mark,
    stamp, tag, or label as `Inspected and passed' all such products found
    to be not adulterated; and said inspectors shall label, mark, stamp, or
    tag as `Inspected and condemned' all such products found adulterated,
    and all such condemned meat food products shall be destroyed for food
    purposes, as hereinbefore provided, and the Secretary may remove
    inspectors from any establishment which fails to so destroy such
    condemned meat food products: Provided, That subject to the rules and
    regulations of the Secretary the provisions of this section in regard
    to preservatives shall not apply to meat food products for export to
    any foreign country and which are prepared or packed according to the
    specifications or directions of the foreign purchaser, when no
    substance is used in the preparation or packing thereof in conflict
    with the laws of the foreign country to which said article is to be
    exported; but if said article shall be in fact sold or offered for sale
    for domestic use or consumption then this proviso shall not exempt said
    article from the operation of all the other provisions of this chapter.
        ``(b) Catfish.--In the case of an examination and inspection under
    subsection (a) of a meat food product derived from catfish, the
    Secretary shall take into account the conditions under which the
    catfish is raised and transported to a processing establishment.''; and
                (C) by adding at the end of title I the following new
            section:
        ``Sec. 25.  Notwithstanding any other provision of this Act, the
    requirements of sections 3, 4, 5, 10(b), and 23 shall not apply to
    catfish.''.
            (2) Effective date.--
                (A) In general.--The amendments made by paragraph (1) shall
            not apply until the date on which the Secretary of Agriculture
            issues final regulations (after providing a period of public
            comment, including through the conduct of public meetings or
            hearings, in accordance with chapter 5 of title 5, United
            States Code) to carry out such amendments.
                (B) Regulations.--Not later than 18 months after the date
            of the enactment of this Act, the Secretary of Agriculture, in
            consultation with the Commissioner of Food and Drugs, shall
            issue final regulations to carry out the amendments made by
            paragraph (1).
            (3) Budget request.--Not later than 30 days after the date of
        the enactment of this Act, the Secretary of Agriculture shall
        submit to Congress an estimate of the costs of implementing the
        amendments made by paragraph (1), including the estimated--
                (A) staff years;
                (B) number of establishments;
                (C) volume expected to be produced at such establishments;
            and
                (D) any other information used in estimating the costs of
            implementing such amendments.
    SEC. 11017. FOOD SAFETY IMPROVEMENT.
        (a) Federal Meat Inspection Act.--Title I of the Federal Meat
    Inspection Act is further amended by inserting after section 11 (21
    U.S.C. 611) the following:
      ``SEC. 12. NOTIFICATION.
        ``Any establishment subject to inspection under this Act that
    believes, or has reason to believe, that an adulterated or misbranded
    meat or meat food product received by or originating from the
    establishment has entered into commerce shall promptly notify the
    Secretary with regard to the type, amount, origin, and destination of
    the meat or meat food product.
      ``SEC. 13. PLANS AND REASSESSMENTS.
        ``The Secretary shall require that each establishment subject to
    inspection under this Act shall, at a minimum--
            ``(1) prepare and maintain current procedures for the recall of
        all meat or meat food products produced and shipped by the
        establishment;
            ``(2) document each reassessment of the process control plans
        of the establishment; and
            ``(3) upon request, make the procedures and reassessed process
        control plans available to inspectors appointed by the Secretary
        for review and copying.''.
        (b) Poultry Products Inspection Act.--Section 10 of the Poultry
    Products Inspection Act (21 U.S.C. 459) is amended--
            (1) by striking the section heading and all that follows
        through ``sec. 10. No establishment'' and inserting the following:
      ``SEC. 10. COMPLIANCE BY ALL ESTABLISHMENTS.
        ``(a) In General.--No establishment''; and
            (2) by adding at the end the following:
        ``(b) Notification.--Any establishment subject to inspection under
    this Act that believes, or has reason to believe, that an adulterated
    or misbranded poultry or poultry product received by or originating
    from the establishment has entered into commerce shall promptly notify
    the Secretary with regard to the type, amount, origin, and destination
    of the poultry or poultry product.
        ``(c) Plans and Reassessments.--The Secretary shall require that
    each establishment subject to inspection under this Act shall, at a
    minimum--
            ``(1) prepare and maintain current procedures for the recall of
        all poultry or poultry products produced and shipped by the
        establishment;
            ``(2) document each reassessment of the process control plans
        of the establishment; and
            ``(3) upon request, make the procedures and reassessed process
        control plans available to inspectors appointed by the Secretary
        for review and copying.''.

           TITLE XII--CROP INSURANCE AND DISASTER ASSISTANCE PROGRAMS
        Subtitle A--Crop Insurance and Agricultural Disaster Assistance

    SEC. 12001. 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. 12002. 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. 12003. 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
    12002(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 1.1'' 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 day before the date of enactment of the Food,
            Conservation, and Energy Act of 2008; and
                ``(C) 1.0 on and after the date of enactment of that
            Act.''.
    SEC. 12004. PREMIUMS ADJUSTMENTS.
        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) Premium adjustments.--
                ``(A) Prohibition.--Except as provided in subparagraph (B),
            no person shall pay, allow, or give, or offer to pay, allow, or
            give, directly or indirectly, either as an inducement to
            procure insurance or after insurance has been procured, any
            rebate, discount, abatement, credit, or reduction of the
            premium named in an insurance policy or any other valuable
            consideration or inducement not specified in the policy.
                ``(B) Exceptions.--Subparagraph (A) does not apply with
            respect to--
                    ``(i) a payment authorized under subsection (b)(5)(B);
                    ``(ii) a performance-based discount authorized under
                subsection (d)(3); or
                    ``(iii) a patronage dividend, or similar payment, that
                is paid--

                        ``(I) by an entity that was approved by the
                    Corporation to make such payments for the 2005, 2006,
                    or 2007 reinsurance year, in accordance with subsection
                    (b)(5)(B) as in effect on the day before the date of
                    enactment of this paragraph; and
                        ``(II) in a manner consistent with the payment plan
                    approved in accordance with that subsection for the
                    entity by the Corporation for the applicable
                    reinsurance year.''.

    SEC. 12005. CONTROLLED BUSINESS INSURANCE.
        Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a))
    (as amended by section 12004) is amended by adding at the end the
    following:
            ``(10) Commissions.--
                ``(A) Definition of immediate family.--In this paragraph,
            the term `immediate family' means an individual'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 individual's spouse.
                ``(B) Prohibition.--No individual (including a subagent)
            may receive directly, or indirectly through an entity, any
            compensation (including any commission, profit sharing, bonus,
            or any other direct or indirect benefit) for the sale or
            service of a policy or plan of insurance offered under this
            title if--
                    ``(i) the individual has a substantial beneficial
                interest, or a member of the individual's immediate family
                has a substantial beneficial interest, in the policy or
                plan of insurance; and
                    ``(ii) the total compensation to be paid to the
                individual with respect to the sale or service of the
                policies or plans of insurance that meet the condition
                described in clause (i) exceeds 30 percent or the
                percentage specified in State law, whichever is less, of
                the total of all compensation received directly or
                indirectly by the individual for the sale or service of all
                policies and plans of insurance offered under this title
                for the reinsurance year.
                ``(C) Reporting.--Not later than 90 days after the annual
            settlement date of the reinsurance year, any individual that
            received directly or indirectly any compensation for the
            service or sale of any policy or plan of insurance offered
            under this title in the prior reinsurance year shall certify to
            applicable approved insurance providers that the compensation
            that the individual received was in compliance with this
            paragraph.
                ``(D) Sanctions.--The procedural 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 individuals or entities
                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
                compensation is received, including the reinsurance for
                those policies or plans.''.
    SEC. 12006. ADMINISTRATIVE FEE.
        (a) In General.--Section 508(b)(5) of the Federal Crop Insurance
    Act (7 U.S.C. 1508(b)(5)) is amended--
            (1) by striking subparagraph (A) and inserting the following:
                ``(A) Basic fee.--Each producer shall pay an administrative
            fee for catastrophic risk protection in the amount of $300 per
            crop per county.''; 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''.
        (b) Repeal.--Section 748 of the Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies Appropriations Act,
    1999 (7 U.S.C. 1508 note; Public Law 105-277) is repealed.
    SEC. 12007. TIME FOR PAYMENT.
        Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is
    amended--
            (1) in subsection (b)(5)(C), by striking ``the date that
        premium'' and inserting ``the same date on which the premium'';
            (2) in subsection (c)(10), by adding at the end the following:
                ``(C) Time for payment.--Subsection (b)(5)(C) shall apply
            with respect to the collection date for the administrative
            fee.''; and
            (3) in subsection (d), by adding at the end the following:
            ``(4) Billing date for premiums.--Effective beginning with the
        2012 reinsurance year, the Corporation shall establish August 15 as
        the billing date for premiums.''.
    SEC. 12008. CATASTROPHIC COVERAGE REIMBURSEMENT RATE.
        Section 508(b)(11) of the Federal Crop Insurance Act (7 U.S.C.
    1508(b)(11)) is amended by striking ``8 percent'' and inserting ``6
    percent''.
    SEC. 12009. GRAIN SORGHUM PRICE ELECTION.
        Section 508(c)(5) of the Federal Crop Insurance Act (7 U.S.C.
    1508(c)(5)) is amended by adding at the end the following:
                ``(D) Grain sorghum price election.--
                    ``(i) In general.--The Corporation, in conjunction with
                the Secretary (referred to in this subparagraph as the
                `Corporation'), shall--

                        ``(I) not later than 60 days after the date of
                    enactment of this subparagraph, make available all
                    methods and data, including data from the Economic
                    Research Service, used by the Corporation to develop
                    the expected market prices for grain sorghum under the
                    production and revenue-based plans of insurance of the
                    Corporation; and
                        ``(II) request applicable data from the grain
                    sorghum industry.

                    ``(ii) Expert reviewers.--

                        ``(I) In general.--Not later than 120 days after
                    the date of enactment of this subparagraph, the
                    Corporation shall contract individually with 5 expert
                    reviewers described in subclause (II) to develop and
                    recommend a methodology for determining an expected
                    market price for sorghum for both the production and
                    revenue-based plans of insurance to more accurately
                    reflect the actual price at harvest.
                        ``(II) Requirements.--The expert reviewers under
                    subclause (I) shall be comprised of agricultural
                    economists with experience in grain sorghum and corn
                    markets, of whom--

                            ``(aa) 2 shall be agricultural economists of
                        institutions of higher education;
                            ``(bb) 2 shall be economists from within the
                        Department; and
                            ``(cc) 1 shall be an economist nominated by the
                        grain sorghum industry.
                    ``(iii) Recommendations.--

                        ``(I) In general.--Not later than 90 days after the
                    date of contracting with the expert reviewers under
                    clause (ii), the expert reviewers shall submit, and the
                    Corporation shall make available to the public, the
                    recommendations of the expert reviewers.
                        ``(II) Consideration.--The Corporation shall
                    consider the recommendations under subclause (I) when
                    determining the appropriate pricing methodology to
                    determine the expected market price for grain sorghum
                    under both the production and revenue-based plans of
                    insurance.
                        ``(III) Publication.--Not later than 60 days after
                    the date on which the Corporation receives the
                    recommendations of the expert reviewers, the
                    Corporation shall publish the proposed pricing
                    methodology for both the production and revenue-based
                    plans of insurance for notice and comment and, during
                    the comment period, conduct at least 1 public meeting
                    to discuss the proposed pricing methodologies.

                    ``(iv) Appropriate pricing methodology.--

                        ``(I) In general.--Not later than 180 days after
                    the close of the comment period in clause (iii)(III),
                    but effective not later than the 2010 crop year, the
                    Corporation shall implement a pricing methodology for
                    grain sorghum under the production and revenue-based
                    plans of insurance that is transparent and replicable.
                        ``(II) Interim methodology.--Until the date on
                    which the new pricing methodology is implemented, the
                    Corporation may continue to use the pricing methodology
                    that the Corporation determines best establishes the
                    expected market price.
                        ``(III) Availability.--On an annual basis, the
                    Corporation shall make available the pricing
                    methodology and data used to determine the expected
                    market prices for grain sorghum under the production
                    and revenue-based plans of insurance, including any
                    changes to the methodology used to determine the
                    expected market prices for grain sorghum from the
                    previous year.''.

    SEC. 12010. PREMIUM REDUCTION AUTHORITY.
        Subsection 508(e) of the Federal Crop Insurance Act (7 U.S.C.
    1508(e)) is amended--
            (1) in paragraph (2), by striking ``paragraph (4)'' and
        inserting ``paragraph (3)'';
            (2) by striking paragraph (3); and
            (3) by redesignating paragraphs (4) and (5) as paragraphs (3)
        and (4), respectively.
    SEC. 12011. ENTERPRISE AND WHOLE FARM UNITS.
        Section 508(e) of Federal Crop Insurance Act (7 U.S.C. 1508(e)) (as
    amended by section 12010) is amended by adding at the end the
    following:
            ``(5) 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).
                ``(B) Amount.--The percentage of the premium paid by the
            Corporation to a policyholder for a policy with an enterprise
            or whole farm unit under this paragraph shall, to the maximum
            extent practicable, provide the same dollar amount of premium
            subsidy per acre that would otherwise have been paid by the
            Corporation under paragraph (2) if the policyholder had
            purchased a basic or optional unit for the crop for the crop
            year.
                ``(C) Limitation.--The amount of the premium paid by the
            Corporation under this paragraph may not exceed 80 percent of
            the total premium for the enterprise or whole farm unit
            policy.''.
    SEC. 12012. PAYMENT OF PORTION OF PREMIUM FOR AREA REVENUE PLANS.
        Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e))
    (as amended by section 12011) is amended--
            (1) in paragraph (2), in the matter preceding subparagraph (A),
        by striking ``paragraph (4)'' and inserting ``paragraphs (4), (6),
        and (7)''; and
            (2) by adding at the end the following:
            ``(6) Premium subsidy for area revenue plans.--Subject to
        paragraph (4), in the case of a policy or plan of insurance that
        covers losses due to a reduction in revenue in an area, the amount
        of the premium paid by the Corporation shall be as follows:
                ``(A) In the case of additional area coverage equal to or
            greater than 70 percent, but less than 75 percent, of the
            recorded county yield indemnified at not greater than 100
            percent of the expected market price, the amount shall be equal
            to the sum of--
                    ``(i) 59 percent of the amount of the premium
                established under subsection (d)(2)(B)(i) for the coverage
                level selected; and
                    ``(ii) the amount determined under subsection
                (d)(2)(B)(ii) for the coverage level selected to cover
                operating and administrative expenses.
                ``(B) In the case of additional area coverage equal to or
            greater than 75 percent, but less than 85 percent, of the
            recorded county yield indemnified at not greater than 100
            percent of the expected market price, the amount shall be equal
            to the sum of--
                    ``(i) 55 percent of the amount of the premium
                established under subsection (d)(2)(B)(i) for the coverage
                level selected; and
                    ``(ii) the amount determined under subsection
                (d)(2)(B)(ii) for the coverage level selected to cover
                operating and administrative expenses.
                ``(C) In the case of additional area coverage equal to or
            greater than 85 percent, but less than 90 percent, of the
            recorded county yield indemnified at not greater than 100
            percent of the expected market price, the amount shall be equal
            to the sum of--
                    ``(i) 49 percent of the amount of the premium
                established under subsection (d)(2)(B)(i) for the coverage
                level selected; and
                    ``(ii) the amount determined under subsection
                (d)(2)(B)(ii) for the coverage level selected to cover
                operating and administrative expenses.
                ``(D) In the case of additional area coverage equal to or
            greater than 90 percent of the recorded county yield
            indemnified at not greater than 100 percent of the expected
            market price, the amount shall be equal to the sum of--
                    ``(i) 44 percent of the amount of the premium
                established under subsection (d)(2)(B)(i) for the coverage
                level selected; and
                    ``(ii) the amount determined under subsection
                (d)(2)(B)(ii) for the coverage level selected to cover
                operating and administrative expenses.
            ``(7) Premium subsidy for area yield plans.--Subject to
        paragraph (4), in the case of a policy or plan of insurance that
        covers losses due to a loss of yield or prevented planting in an
        area, the amount of the premium paid by the Corporation shall be as
        follows:
                ``(A) In the case of additional area coverage equal to or
            greater than 70 percent, but less than 80 percent, of the
            recorded county yield indemnified at not greater than 100
            percent of the expected market price, the amount shall be equal
            to the sum of--
                    ``(i) 59 percent of the amount of the premium
                established under subsection (d)(2)(B)(i) for the coverage
                level selected; and
                    ``(ii) the amount determined under subsection
                (d)(2)(B)(ii) for the coverage level selected to cover
                operating and administrative expenses.
                ``(B) In the case of additional area coverage equal to or
            greater than 80 percent, but less than 90 percent, of the
            recorded county yield indemnified at not greater than 100
            percent of the expected market price, the amount shall be equal
            to the sum of--
                    ``(i) 55 percent of the amount of the premium
                established under subsection (d)(2)(B)(i) for the coverage
                level selected; and
                    ``(ii) the amount determined under subsection
                (d)(2)(B)(ii) for the coverage level selected to cover
                operating and administrative expenses.
                ``(C) In the case of additional area coverage equal to or
            greater than 90 percent, of the recorded county yield
            indemnified at not greater than 100 percent of the expected
            market price, the amount shall be equal to the sum of--
                    ``(i) 51 percent of the amount of the premium
                established under subsection (d)(2)(B)(i) for the coverage
                level selected; and
                    ``(ii) the amount determined under subsection
                (d)(2)(B)(ii) for the coverage level selected to cover
                operating and administrative expenses.''.
    SEC. 12013. 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. 12014. SETTLEMENT OF CROP INSURANCE CLAIMS ON FARM-STORED
    PRODUCTION.
        (a) In General.--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) Settlement of claims on farm-stored production.--A
        producer with farm-stored production may, at the option of the
        producer, delay settlement of a crop insurance claim relating to
        the farm-stored production for up to 4 months after the last date
        on which claims may be submitted under the policy of insurance.''.
        (b) Study on the Efficacy of Pack Factors.--
            (1) In general.--The Secretary shall conduct a study of the
        efficacy and accuracy of the application of pack factors regarding
        the measurement of farm-stored production for purposes of providing
        policies or plans of insurance under the Federal Crop Insurance Act
        (7 U.S.C. 1501 et seq.).
            (2) Considerations.--The study shall consider--
                (A) structural shape and size;
                (B) time in storage;
                (C) the impact of facility aeration systems; and
                (D) any other factors the Secretary considers appropriate.
            (3) Report.--Not later than 3 years after the date of enactment
        of this Act, the Secretary shall submit to the Committee on
        Agriculture of the House of Representatives and the Committee on
        Agriculture, Nutrition, and Forestry of the Senate a report that
        includes the findings of the study and any related policy
        recommendations.
    SEC. 12015. TIME FOR REIMBURSEMENT.
        Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C.
    1508(k)(4)) is amended 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)
            after the reinsurance year for which reimbursements are
            earned.''.
    SEC. 12016. REIMBURSEMENT RATE.
        Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C.
    1508(k)(4)) (as amended by section 12015) 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.--In the case of a
            policy of additional coverage that received a rate of
            reimbursement for administrative and operating costs for the
            2008 reinsurance year, for each of the 2009 and subsequent
            reinsurance years, the reimbursement rate for administrative
            and operating costs shall be 2.3 percentage points below the
            rates in effect as of the date of enactment of the Food,
            Conservation, and Energy Act of 2008 for all crop insurance
            policies used to define loss ratio, except that only \1/2\ of
            the reduction shall 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
            widely available as of the date of enactment of this
            subparagraph shall be 12 percent of the premium used to define
            loss ratio for that reinsurance year.''.
    SEC. 12017. 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.--Except as provided in subparagraph (B),
            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) to be effective for the 2011 reinsurance year
                beginning July 1, 2010; and
                    ``(ii) once during each period of 5 reinsurance years
                thereafter.
                ``(B) Exceptions.--
                    ``(i) Adverse circumstances.--Subject to clause (ii),
                subparagraph (A) shall not apply in any case in which the
                approved insurance providers, as a whole, experience
                unexpected adverse circumstances, as determined by the
                Secretary.
                    ``(ii) Effect of federal law changes.--If Federal law
                is enacted after the date of enactment of this paragraph
                that requires revisions in the financial terms of the
                Standard Reinsurance Agreement, and changes in the
                Agreement are made on a mandatory basis by the Corporation,
                the changes shall not be considered to be a renegotiation
                of the Agreement for purposes of subparagraph (A).
                ``(C) 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.
                ``(D) Consultation.--The approved insurance providers may
            confer with each other and collectively with the Corporation
            during any renegotiation under subparagraph (A).
                ``(E) 2011 reinsurance year.--
                    ``(i) In general.--As part of the Standard Reinsurance
                Agreement renegotiation authorized under subparagraph
                (A)(i), the Corporation shall consider alternative methods
                to determine reimbursement rates for administrative and
                operating costs.
                    ``(ii) Alternative methods.--Alternatives considered
                under clause (i) shall include--

                        ``(I) methods that--

                            ``(aa) are graduated and base reimbursement
                        rates in a State on changes in premiums in that
                        State;
                            ``(bb) are graduated and base reimbursement
                        rates in a State on the loss ratio for crop
                        insurance for that State; and
                            ``(cc) are graduated and base reimbursement
                        rates on individual policies on the level of total
                        premium for each policy; and

                        ``(II) any other method that takes into account
                    current financial conditions of the program and ensures
                    continued availability of the program to producers on a
                    nationwide basis.''.

    SEC. 12018. 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 12017) 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. 12019. 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. 12020. 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 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 tilled for the production of an
            annual crop as of the date of enactment of this subsection.
            ``(2) Ineligibility for benefits.--
                ``(A) In general.--Subject to subparagraph (B) and
            paragraph (3), native sod acreage that has been tilled for the
            production of an annual crop after the date of enactment of
            this subsection shall be ineligible during the first 5 crop
            years of planting, as determined by the Secretary, for benefits
            under--
                    ``(i) this title; and
                    ``(ii) section 196 of the Federal Agriculture
                Improvement and Reform Act of 1996 (7 U.S.C. 7333).
                ``(B) De minimis acreage exemption.--The Secretary shall
            exempt areas of 5 acres or less from subparagraph (A).
            ``(3) Application.--Paragraph (2) may apply to native sod
        acreage in the Prairie Pothole National Priority Area at the
        election of the Governor of the respective State.''.
        (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 tilled for the production of
                an annual crop as of the date of enactment of this
                paragraph.
                ``(B) Ineligibility for benefits.--
                    ``(i) In general.--Subject to clause (ii) and
                subparagraph (C), native sod acreage that has been tilled
                for the production of an annual crop after the date of
                enactment of this paragraph shall be ineligible during the
                first 5 crop years of planting, as determined by the
                Secretary, for benefits under--

                        ``(I) this section; and
                        ``(II) the Federal Crop Insurance Act (7 U.S.C.
                    1501 et seq.).

                    ``(ii) De minimis acreage exemption.--The Secretary
                shall exempt areas of 5 acres or less from clause (i).
                ``(C) Application.--Subparagraph (B) may apply to native
            sod acreage in the Prairie Pothole National Priority Area at
            the election of the Governor of the respective State.''.
    SEC. 12021. INFORMATION MANAGEMENT.
        Section 515 of the Federal Crop Insurance Act (7 U.S.C. 1515) is
    amended--
         (a) in subsection (j)(3), by adding before the period at the end
    the following: ``, which shall be subject to competition on a periodic
    basis, as determined by the Secretary''; and
        (b) by striking subsection (k) and inserting the following:
        ``(k) Funding.--
            ``(1) Information technology.--To carry out subsection (j)(1),
        the Corporation may use, from amounts made available from the
        insurance fund established under section 516(c), not more than
        $15,000,000 for each of fiscal years 2008 through 2011.
            ``(2) Data mining.--To carry out subsection (j)(2), the
        Corporation may use, from amounts made available from the insurance
        fund established under section 516(c), not more than $4,000,000 for
        fiscal year 2009 and each subsequent fiscal year.''.
    SEC. 12022. RESEARCH AND DEVELOPMENT.
        (a) In General.--Section 522(b) of the Federal Crop Insurance Act
    (7 U.S.C. 1522(b)) is amended by striking paragraphs (1) and (2) and
    inserting the following:
            ``(1) Research and development payment.--
                ``(A) In general.--The Corporation shall provide a payment
            to an applicant for research and development costs in
            accordance with this subsection.
                ``(B) Reimbursement.--An applicant who submits a policy
            under section 508(h) shall be eligible for the reimbursement of
            reasonable research and development costs directly related to
            the policy if the policy is approved by the Board for sale to
            producers.
            ``(2) Advance payments.--
                ``(A) In general.--Subject to the other provisions of this
            paragraph, the Board may approve the request of an applicant
            for advance payment of a portion of reasonable research and
            development costs prior to submission and approval of the
            policy by the Board under section 508(h).
                ``(B) Procedures.--The Board shall establish procedures for
            approving advance payment of reasonable research and
            development costs to applicants.
                ``(C) Concept proposal.--As a condition of eligibility for
            advance payments, an applicant shall submit a concept proposal
            for the policy that the applicant plans to submit to the Board
            under section 508(h), consistent with procedures established by
            the Board for submissions under subparagraph (B), including--
                    ``(i) a summary of the qualifications of the applicant,
                including any prior concept proposals and submissions to
                the Board under section 508(h) and, if applicable, any work
                conducted under this section;
                    ``(ii) a projection of total research and development
                costs that the applicant expects to incur;
                    ``(iii) a description of the need for the policy, the
                marketability of and expected demand for the policy among
                affected producers, and the potential impact of the policy
                on producers and the crop insurance delivery system;
                    ``(iv) a summary of data sources available to
                demonstrate that the policy can reasonably be developed and
                actuarially appropriate rates established; and
                    ``(v) an identification of the risks the proposed
                policy will cover and an explanation of how the identified
                risks are insurable under this title.
                ``(D) Review.--
                    ``(i) Experts.--If the requirements of subparagraph (B)
                and (C) are met, the Board may submit a concept proposal
                described in subparagraph (C) to not less than 2
                independent expert reviewers, whose services are
                appropriate for the type of concept proposal submitted, to
                assess the likelihood that the proposed policy being
                developed will result in a viable and marketable policy, as
                determined by the Board.
                    ``(ii) Timing.--The time frames described in
                subparagraphs (C) and (D) of section 508(h)(4) shall apply
                to the review of concept proposals under this subparagraph.
                ``(E) Approval.--The Board may approve up to 50 percent of
            the projected total research and development costs to be paid
            in advance to an applicant, in accordance with the procedures
            developed by the Board for the making of such payments, if,
            after consideration of the reviewer reports described in
            subparagraph (D) and such other information as the Board
            determines appropriate, the Board determines that--
                    ``(i) the concept, in good faith, will likely result in
                a viable and marketable policy consistent with section
                508(h);
                    ``(ii) in the sole opinion of the Board, the concept,
                if developed into a policy and approved by the Board, would
                provide crop insurance coverage--

                        ``(I) in a significantly improved form;
                        ``(II) to a crop or region not traditionally served
                    by the Federal crop insurance program; or
                        ``(III) in a form that addresses a recognized flaw
                    or problem in the program;

                    ``(iii) the applicant agrees to provide such reports as
                the Corporation determines are necessary to monitor the
                development effort;
                    ``(iv) the proposed budget and timetable are
                reasonable; and
                    ``(v) the concept proposal meets any other requirements
                that the Board determines appropriate.
                ``(F) Submission of policy.--If the Board approves an
            advanced payment under subparagraph (E), the Board shall
            establish a date by which the applicant shall present a
            submission in compliance with section 508(h) (including the
            procedures implemented under that section) to the Board for
            approval.
                ``(G) Final payment.--
                    ``(i) Approved policies.--If a policy is submitted
                under subparagraph (F) and approved by the Board under
                section 508(h) and the procedures established by the Board
                (including procedures established under subparagraph (B)),
                the applicant shall be eligible for a payment of reasonable
                research and development costs in the same manner as
                policies reimbursed under paragraph (1)(B), less any
                payments made pursuant to subparagraph (E).
                    ``(ii) Policies not approved.--If a policy is submitted
                under subparagraph (F) and is not approved by the Board
                under section 508(h), the Corporation shall--

                        ``(I) not seek a refund of any payments made in
                    accordance with this paragraph; and
                        ``(II) not make any further research and
                    development cost payments associated with the
                    submission of the policy under this paragraph.

                ``(H) Policy not submitted.--If an applicant receives an
            advance payment and fails to fulfill the obligation of the
            applicant to the Board by not submitting a completed submission
            without just cause and in accordance with the procedures
            established under subparagraph (B)), including notice and
            reasonable opportunity to respond, as determined by the Board,
            the applicant shall return to the Board the amount of the
            advance plus interest.
                ``(I) Repeated submissions.--The Board may prohibit advance
            payments to applicants who have submitted--
                    ``(i) a concept proposal or submission that did not
                result in a marketable product; or
                    ``(ii) a concept proposal or submission of poor
                quality.
                ``(J) Continued eligibility.--A determination that an
            applicant is not eligible for advance payments under this
            paragraph shall not prevent an applicant from reimbursement
            under paragraph (1)(B).''.
        (b) Conforming Amendments.--Section 522(b) of the Federal Crop
    Insurance Act (7 U.S.C. 1522(b)) is amended--
            (1) in paragraph (3), by striking ``or (2)''; and
            (2) in paragraph (4)(A), by striking ``and (2)''.''
    SEC. 12023. CONTRACTS FOR ADDITIONAL POLICIES AND STUDIES.
        Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522) is
    amended--
            (1) by redesignating paragraph (10) as paragraph (17); and
            (2) by inserting after paragraph (9) the following:
            ``(10) Contracts for organic production coverage
        improvements.--
                ``(A) Contracts required.--Not later than 180 days after
            the date of enactment of the Food, Conservation, and Energy Act
            of 2008, the Corporation shall enter into 1 or more contracts
            for the development of improvements in Federal crop insurance
            policies covering crops produced in compliance with standards
            issued by the Department of Agriculture under the national
            organic program established under the Organic Foods Production
            Act of 1990 (7 U.S.C. 6501 et seq.).
                ``(B) Review of underwriting risk and loss experience.--
                    ``(i) Review required.--

                        ``(I) In general.--A contract under subparagraph
                    (A) shall include a review of the underwriting, risk,
                    and loss experience of organic crops covered by the
                    Corporation, as compared with the same crops produced
                    in the same counties and during the same crop years
                    using nonorganic methods.
                        ``(II) Requirements.--The review shall--

                            ``(aa) to the maximum extent practicable, be
                        designed to allow the Corporation to determine
                        whether significant, consistent, or systemic
                        variations in loss history exist between organic
                        and nonorganic production;
                            ``(bb) include the widest available range of
                        data collected by the Secretary and other outside
                        sources of information; and
                            ``(cc) not be limited to loss history under
                        existing crop insurance policies.
                    ``(ii) Effect on premium surcharge.--Unless the review
                under this subparagraph documents the existence of
                significant, consistent, and systemic variations in loss
                history between organic and nonorganic crops, either
                collectively or on an individual crop basis, the
                Corporation shall eliminate or reduce the premium surcharge
                that the Corporation charges for coverage for organic
                crops, as determined in accordance with the results.
                    ``(iii) Annual updates.--Beginning with the 2009 crop
                year, the review under this subparagraph shall be updated
                on an annual basis as data is accumulated by the Secretary
                and other sources, so that the Corporation may make
                determinations regarding adjustments to the surcharge in a
                timely manner as quickly as evolving practices and data
                trends allow.
                ``(C) Additional price election.--
                    ``(i) In general.--A contract under subparagraph (A)
                shall include the development of a procedure, including any
                associated changes in policy terms or materials required
                for implementation of the procedure, to offer producers of
                organic crops an additional price election that reflects
                actual prices received by organic producers for crops from
                the field (including appropriate retail and wholesale
                prices), as established using data collected and maintained
                by the Secretary or from other sources.
                    ``(ii) Timing.--The development of the procedure shall
                be completed in a timely manner to allow the Corporation to
                begin offering the additional price election for organic
                crops with sufficient data for the 2010 crop year.
                    ``(iii) Expansion.--The procedure shall be expanded as
                quickly as practicable as additional data on prices of
                organic crops collected by the Secretary and other sources
                of information becomes available, with a goal of applying
                this procedure to all organic crops not later than the
                fifth full crop year that begins after the date of
                enactment of Food, Conservation, and Energy Act of 2008.
                ``(D) Reporting requirements.--
                    ``(i) In general.--The Corporation 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 on progress made in
                developing and improving Federal crop insurance for organic
                crops, including--

                        ``(I) the numbers and varieties of organic crops
                    insured;
                        ``(II) the development of new insurance approaches;
                    and
                        ``(III) the progress of implementing the
                    initiatives required under this paragraph, including
                    the rate at which additional price elections are
                    adopted for organic crops.

                    ``(ii) Recommendations.--The report shall include such
                recommendations as the Corporation considers appropriate to
                improve Federal crop insurance coverage for organic crops.
            ``(11) 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
                biobased 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.
            ``(12) 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.--
                    ``(i) In general.--As soon as practicable after the
                date of enactment of the Food, Conservation, and Energy Act
                of 2008, the Corporation shall offer to enter into 3 or
                more contracts with qualified entities to carry out
                research and development regarding a policy to insure the
                production of aquacultural species in aquaculture
                operations.
                    ``(ii) Bivalve species.--At least 1 of the contracts
                described in clause (i) shall address insurance of bivalve
                species, including--

                        ``(I) American oysters (crassostrea virginica);
                        ``(II) hard clams (mercenaria mercenaria);
                        ``(III) Pacific oysters (crassostrea gigas);
                        ``(IV) Manila clams (tapes phillipinnarium); or
                        ``(V) blue mussels (mytilus edulis).

                    ``(iii) Freshwater species.--At least 1 of the
                contracts described in clause (i) shall address insurance
                of freshwater species, including--

                        ``(I) catfish (icataluridae);
                        ``(II) rainbow trout (oncorhynchus mykiss);
                        ``(III) largemouth bass (micropterus salmoides);
                        ``(IV) striped bass (morone saxatilis);
                        ``(V) bream (abramis brama);
                        ``(VI) shrimp (penaeus); or
                        ``(VII) tilapia (oreochromis niloticus).

                    ``(iv) Saltwater species.--At least 1 of the contracts
                described in clause (i) shall address insurance of
                saltwater species, including--

                        ``(I) Atlantic salmon (salmo salar); or
                        ``(II) shrimp (penaeus).

                ``(C) Research and development.--Research and development
            described in subparagraph (B) shall evaluate the effectiveness
            of policies and plans of insurance for the production of
            aquacultural species 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 production of
                aquacultural species in aquaculture operations into
                existing policies covering adjusted gross revenue; and
                    ``(iii) provide protection for production or revenue
                losses, or both.
            ``(13) Poultry insurance policy.--
                ``(A) Definition of poultry.--In this paragraph, the term
            `poultry' has the meaning given the term in section 2(a) of the
            Packers and Stockyards Act, 1921 (7 U.S.C. 182(a)).
                ``(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
            commercial poultry production.
                ``(C) Research and development.--Research and development
            described in subparagraph (B) shall evaluate the effectiveness
            of risk management tools for the production of poultry,
            including policies and plans of insurance that provide
            protection for production or revenue losses, or both, while the
            poultry is in production.
            ``(14) Apiary policies.--The Corporation shall offer to enter
        into a contract with a qualified entity to carry out research and
        development regarding insurance policies that cover loss of bees.
            ``(15) Adjusted gross revenue policies for beginning
        producers.--The Corporation shall offer to enter into a contract
        with a qualified entity to carry out research and development into
        needed modifications of adjusted gross revenue insurance policies,
        consistent with principles of actuarial sufficiency, to permit
        coverage for beginning producers with no previous production
        history, including permitting those producers to have production
        and premium rates based on information with similar farming
        operations.
            ``(16) 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. 12024. 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; and
                    ``(iv) identifying and using innovative compliance
                strategies; and
                ``(B) any excess amounts to carry out other activities
            authorized under this section.''.
    SEC. 12025. PILOT PROGRAMS.
        (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.--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.
            ``(3) Timeframe.--The Corporation shall commence the camelina
        insurance pilot program as soon as practicable after the date of
        enactment of this subsection.
        ``(g) Sesame Insurance Pilot Program.--
            ``(1) In general.--In addition to any other authority of the
        Corporation, the Corporation shall establish and carry out a pilot
        program under which a producer of nondehiscent sesame under
        contract may elect to obtain multiperil crop insurance, as
        determined by the Corporation.
            ``(2) Terms and conditions.--The multiperil 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) Duration.--The Corporation shall commence the sesame
        insurance pilot program as soon as practicable after the date of
        the enactment of this subsection.
        ``(h) Grass Seed Insurance Pilot Program.--
            ``(1) In general.--In addition to any other authority of the
        Corporation, the Corporation shall establish and carry out a grass
        seed pilot program under which a producer of Kentucky bluegrass or
        perennial rye grass under contract may elect to obtain multiperil
        crop insurance, as determined by the Corporation.
            ``(2) Terms and conditions.--The multiperil crop insurance
        offered under the grass seed 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 grass seed insurance pilot program shall
        be carried out only in each of the States of Minnesota and North
        Dakota.
            ``(4) Duration.--The Corporation shall commence the grass seed
        insurance pilot program as soon as practicable after the date of
        the enactment of this subsection.''.
        (b) Conforming Amendment.--Section 196(a)(2)(B) of the Federal
    Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333(a)(2)(B))
    is amended by adding ``camelina,'' after ``sea oats,''.
    SEC. 12026. 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) legal 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. 12027. 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. 12028. 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
        ``$250''; and
            (2) in subparagraph (B)--
                (A) by striking ``$300'' and inserting ``$750''; and
                (B) by striking ``$900'' and inserting ``$1,875''.
    SEC. 12029. 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. 12030. DECLINING YIELD 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. 12031. 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.
    SEC. 12032. 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. 12033. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.
        (a) In General.--The Federal Crop Insurance Act (7 U.S.C. 1501 et
    seq.) is amended by adding at the end the following:

          ``Subtitle B--Supplemental Agricultural Disaster Assistance

        ``SEC. 531. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.
        ``(a) Definitions.--In this section:
            ``(1) Actual production history yield.--The term `actual
        production history yield' means the weighted average of the actual
        production history for each insurable commodity or noninsurable
        commodity, as calculated under subtitle A or the noninsured crop
        disaster assistance program, respectively.
            ``(2) Adjusted actual production history yield.--The term
        `adjusted actual production history yield' means--
                ``(A) in the case of an eligible producer on a farm that
            has at least 4 years of actual production history yields for an
            insurable commodity that are established other than pursuant to
            section 508(g)(4)(B), the actual production history for the
            eligible producer without regard to any yields established
            under that section;
                ``(B) in the case of an eligible producer on a farm that
            has less than 4 years of actual production history yields for
            an insurable commodity, of which 1 or more were established
            pursuant to section 508(g)(4)(B), the actual production history
            for the eligible producer as calculated without including the
            lowest of the yields established pursuant to section
            508(g)(4)(B); and
                ``(C) in all other cases, the actual production history of
            the eligible producer on a farm.
            ``(3) Adjusted noninsured crop disaster assistance program
        yield.--The term `adjusted noninsured crop disaster assistance
        program yield' means--
                ``(A) in the case of an eligible producer on a farm that
            has at least 4 years of production history under the noninsured
            crop disaster assistance program that are not replacement
            yields, the noninsured crop disaster assistance program yield
            without regard to any replacement yields;
                ``(B) in the case of an eligible producer on a farm that
            less than 4 years of production history under the noninsured
            crop disaster assistance program that are not replacement
            yields, the noninsured crop disaster assistance program yield
            as calculated without including the lowest of the replacement
            yields; and
                ``(C) in all other cases, the production history of the
            eligible producer on the farm under the noninsured crop
            disaster assistance program.
            ``(4) 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), section 1102 of
        the Food, Conservation, and Energy Act of 2008, or a successor
        section.
            ``(5) 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.
            ``(6) 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.
            ``(7) 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 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.
            ``(8) Farm-raised fish.--The term `farm-raised fish' means any
        aquatic species that is propagated and reared in a controlled
        environment.
            ``(9) 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 subtitle A.
            ``(10) 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.
            ``(11) 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.
            ``(12) 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).
            ``(13) 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)).
            ``(14) Secretary.--The term `Secretary' means the Secretary of
        Agriculture.
            ``(15) Socially disadvantaged farmer or rancher.--The term
        `socially disadvantaged farmer or rancher' has the meaning given
        the term in section 2501(e) of the Food, Agriculture, Conservation,
        and Trade Act of 1990 (7 U.S.C. 2279(e)).
            ``(16) 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.
            ``(17) Trust fund.--The term `Trust Fund' means the
        Agricultural Disaster Relief Trust Fund established under section
        902 of the Trade Act of 1974.
            ``(18) 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 60 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, 115
                percent of the product obtained by multiplying--

                        ``(I) a payment rate for the commodity that is
                    equal to the price election for the commodity elected
                    by the eligible producer;
                        ``(II) the payment acres for the commodity that is
                    equal to the number of acres planted, or prevented from
                    being planted, to the commodity;
                        ``(III) the payment yield for the commodity that is
                    equal to the percentage of the crop insurance yield
                    elected by the producer of the higher of--

                            ``(aa) the adjusted actual production history
                        yield; or
                            ``(bb) the counter-cyclical program payment
                        yield for each crop; and
                    ``(ii) for each noninsurable commodity on a farm, 120
                percent of the product obtained by multiplying--

                        ``(I) a payment rate for the commodity that is
                    equal to 100 percent of the noninsured crop assistance
                    program established price for the commodity;
                        ``(II) the payment acres for the commodity that is
                    equal to the number of acres planted, or prevented from
                    being planted, to the commodity; and
                        ``(III) the payment yield for the commodity that is
                    equal to the higher of--

                            ``(aa) the adjusted noninsured crop assistance
                        program yield guarantee; or
                            ``(bb) the counter-cyclical program payment
                        yield for each crop.
                ``(B) 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.
                ``(C) 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
            unharvested crops, the adjusted assistance level shall be the
            basis for determining the disaster assistance program guarantee
            for the noninsurable commodity.
                ``(D) 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.
            ``(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 each crop produced
                on a farm by using the product obtained by multiplying--

                        ``(I) the actual crop acreage harvested by an
                    eligible producer on a farm;
                        ``(II) the estimated actual yield of the crop
                    production; and
                        ``(III) subject to subparagraphs (B) and (C), to
                    the extent practicable, the national average market
                    price received for the marketing year, as determined by
                    the Secretary;

                    ``(ii) 15 percent of amount of any direct payments made
                to the producer under sections 1103 and 1303 of the Food,
                Conservation, and Energy Act of 2008 or successor sections;
                    ``(iii) the total amount of any counter-cyclical
                payments made to the producer under sections 1104 and 1304
                of the Food, Conservation, and Energy Act of 2008 or
                successor sections or of any average crop revenue election
                payments made to the producer under section 1105 of that
                Act;
                    ``(iv) the total amount of any loan deficiency
                payments, marketing loan gains, and marketing certificate
                gains made to the producer under subtitles B and C of the
                Food, Conservation, and Energy Act of 2008 or successor
                subtitles;
                    ``(v) the amount of payments for prevented planting on
                a farm;
                    ``(vi) the amount of crop insurance indemnities
                received by an eligible producer on a farm for each crop on
                a farm;
                    ``(vii) the amount of payments an eligible producer on
                a farm received under the noninsured crop assistance
                program for each crop on a farm; and
                    ``(viii) 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 or
                mechanically harvested 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
            national average market price received during the marketing
            year 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 product obtained by multiplying--
                    ``(i) the greatest of--

                        ``(I) the adjusted actual production history yield
                    of the eligible producer on a farm; and
                        ``(II) the counter-cyclical program payment yield;

                    ``(ii) the acreage planted or prevented from being
                planted for each crop; and
                    ``(iii) 100 percent of the insurance price guarantee;
                and
                ``(B) the product obtained by multiplying--
                    ``(i) 100 percent of the adjusted 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) Payments.--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) Livestock Forage Disaster Program.--
            ``(1) Definitions.--In this subsection:
                ``(A) Covered livestock.--
                    ``(i) In general.--Except as provided in clause (ii),
                the term `covered livestock' means livestock of an eligible
                livestock producer that, during the 60 days prior to the
                beginning date of a qualifying drought or fire condition,
                as determined by the Secretary, the eligible livestock
                producer--

                        ``(I) owned;
                        ``(II) leased;
                        ``(III) purchased;
                        ``(IV) entered into a contract to purchase;
                        ``(V) is a contract grower; or
                        ``(VI) sold or otherwise disposed of due to
                    qualifying drought conditions during--

                            ``(aa) the current production year; or
                            ``(bb) subject to paragraph (3)(B)(ii), 1 or
                        both of the 2 production years immediately
                        preceding the current production year.
                    ``(ii) Exclusion.--The term `covered livestock' does
                not include livestock that were or would have been in a
                feedlot, on the beginning date of the qualifying drought or
                fire condition, as a part of the normal business operation
                of the eligible livestock producer, as determined by the
                Secretary.
                ``(B) Drought monitor.--The term `drought monitor' means a
            system for classifying drought severity according to a range of
            abnormally dry to exceptional drought, as defined by the
            Secretary.
                ``(C) Eligible livestock producer.--
                    ``(i) In general.--The term `eligible livestock
                producer' means an eligible producer on a farm that--

                        ``(I) is an owner, cash or share lessee, or
                    contract grower of covered livestock that provides the
                    pastureland or grazing land, including cash-leased
                    pastureland or grazing land, for the livestock;
                        ``(II) provides the pastureland or grazing land for
                    covered livestock, including cash-leased pastureland or
                    grazing land that is physically located in a county
                    affected by drought;
                        ``(III) certifies grazing loss; and
                        ``(IV) meets all other eligibility requirements
                    established under this subsection.

                    ``(ii) Exclusion.--The term `eligible livestock
                producer' does not include an owner, cash or share lessee,
                or contract grower of livestock that rents or leases
                pastureland or grazing land owned by another person on a
                rate-of-gain basis.
                ``(D) Normal carrying capacity.--The term `normal carrying
            capacity', with respect to each type of grazing land or
            pastureland in a county, means the normal carrying capacity, as
            determined under paragraph (3)(D)(i), that would be expected
            from the grazing land or pastureland for livestock during the
            normal grazing period, in the absence of a drought or fire that
            diminishes the production of the grazing land or pastureland.
                ``(E) Normal grazing period.--The term `normal grazing
            period', with respect to a county, means the normal grazing
            period during the calendar year for the county, as determined
            under paragraph (3)(D)(i).
            ``(2) Program.--The Secretary shall use such sums as are
        necessary from the Trust Fund to provide compensation for losses to
        eligible livestock producers due to grazing losses for covered
        livestock due to--
                ``(A) a drought condition, as described in paragraph (3);
            or
                ``(B) fire, as described in paragraph (4).
            ``(3) Assistance for losses due to drought conditions.--
                ``(A) Eligible losses.--
                    ``(i) In general.--An eligible livestock producer may
                receive assistance under this subsection only for grazing
                losses for covered livestock that occur on land that--

                        ``(I) is native or improved pastureland with
                    permanent vegetative cover; or
                        ``(II) is planted to a crop planted specifically
                    for the purpose of providing grazing for covered
                    livestock.

                    ``(ii) Exclusions.--An eligible livestock producer may
                not receive assistance under this subsection for grazing
                losses that occur on land used for haying or grazing under
                the conservation reserve program established under
                subchapter B of chapter 1 of subtitle D of title XII of the
                Food Security Act of 1985 (16 U.S.C. 3831 et seq.).
                ``(B) Monthly payment rate.--
                    ``(i) In general.--Except as provided in clause (ii),
                the payment rate for assistance under this paragraph for 1
                month shall, in the case of drought, be equal to 60 percent
                of the lesser of--

                        ``(I) the monthly feed cost for all covered
                    livestock owned or leased by the eligible livestock
                    producer, as determined under subparagraph (C); or
                        ``(II) the monthly feed cost calculated by using
                    the normal carrying capacity of the eligible grazing
                    land of the eligible livestock producer.

                    ``(ii) Partial compensation.--In the case of an
                eligible livestock producer that sold or otherwise disposed
                of covered livestock due to drought conditions in 1 or both
                of the 2 production years immediately preceding the current
                production year, as determined by the Secretary, the
                payment rate shall be 80 percent of the payment rate
                otherwise calculated in accordance with clause (i).
                ``(C) Monthly feed cost.--
                    ``(i) In general.--The monthly feed cost shall equal
                the product obtained by multiplying--

                        ``(I) 30 days;
                        ``(II) a payment quantity that is equal to the feed
                    grain equivalent, as determined under clause (ii); and
                        ``(III) a payment rate that is equal to the corn
                    price per pound, as determined under clause (iii).

                    ``(ii) Feed grain equivalent.--For purposes of clause
                (i)(I), the feed grain equivalent shall equal--

                        ``(I) in the case of an adult beef cow, 15.7 pounds
                    of corn per day; or
                        ``(II) in the case of any other type of weight of
                    livestock, an amount determined by the Secretary that
                    represents the average number of pounds of corn per day
                    necessary to feed the livestock.

                    ``(iii) Corn price per pound.--For purposes of clause
                (i)(II), the corn price per pound shall equal the quotient
                obtained by dividing--

                        ``(I) the higher of--

                            ``(aa) the national average corn price per
                        bushel for the 12-month period immediately
                        preceding March 1 of the year for which the
                        disaster assistance is calculated; or
                            ``(bb) the national average corn price per
                        bushel for the 24-month period immediately
                        preceding that March 1; by

                        ``(II) 56.

                ``(D) Normal grazing period and drought monitor
            intensity.--
                    ``(i) FSA county committee determinations.--

                        ``(I) In general.--The Secretary shall determine
                    the normal carrying capacity and normal grazing period
                    for each type of grazing land or pastureland in the
                    county served by the applicable committee.
                        ``(II) Changes.--No change to the normal carrying
                    capacity or normal grazing period established for a
                    county under subclause (I) shall be made unless the
                    change is requested by the appropriate State and county
                    Farm Service Agency committees.

                    ``(ii) Drought intensity.--

                        ``(I) D2.--An eligible livestock producer that owns
                    or leases grazing land or pastureland that is
                    physically located in a county that is rated by the
                    U.S. Drought Monitor as having a D2 (severe drought)
                    intensity in any area of the county for at least 8
                    consecutive weeks during the normal grazing period for
                    the county, as determined by the Secretary, shall be
                    eligible to receive assistance under this paragraph in
                    an amount equal to 1 monthly payment using the monthly
                    payment rate determined under subparagraph (B).
                        ``(II) D3.--An eligible livestock producer that
                    owns or leases grazing land or pastureland that is
                    physically located in a county that is rated by the
                    U.S. Drought Monitor as having at least a D3 (extreme
                    drought) intensity in any area of the county at any
                    time during the normal grazing period for the county,
                    as determined by the Secretary, shall be eligible to
                    receive assistance under this paragraph--

                            ``(aa) in an amount equal to 2 monthly payments
                        using the monthly payment rate determined under
                        subparagraph (B); or
                            ``(bb) if the county is rated as having a D3
                        (extreme drought) intensity in any area of the
                        county for at least 4 weeks during the normal
                        grazing period for the county, or is rated as
                        having a D4 (exceptional drought) intensity in any
                        area of the county at any time during the normal
                        grazing period, in an amount equal to 3 monthly
                        payments using the monthly payment rate determined
                        under subparagraph (B).
            ``(4) Assistance for losses due to fire on public managed
        land.--
                ``(A) In general.--An eligible livestock producer may
            receive assistance under this paragraph only if--
                    ``(i) the grazing losses occur on rangeland that is
                managed by a Federal agency; and
                    ``(ii) the eligible livestock producer is prohibited by
                the Federal agency from grazing the normal permitted
                livestock on the managed rangeland due to a fire.
                ``(B) Payment rate.--The payment rate for assistance under
            this paragraph shall be equal to 50 percent of the monthly feed
            cost for the total number of livestock covered by the Federal
            lease of the eligible livestock producer, as determined under
            paragraph (3)(C).
                ``(C) Payment duration.--
                    ``(i) In general.--Subject to clause (ii), an eligible
                livestock producer shall be eligible to receive assistance
                under this paragraph for the period--

                        ``(I) beginning on the date on which the Federal
                    agency excludes the eligible livestock producer from
                    using the managed rangeland for grazing; and
                        ``(II) ending on the last day of the Federal lease
                    of the eligible livestock producer.

                    ``(ii) Limitation.--An eligible livestock producer may
                only receive assistance under this paragraph for losses
                that occur on not more than 180 days per year.
            ``(5) Minimum risk management purchase requirements.--
                ``(A) In general.--Except as otherwise provided in this
            paragraph, a livestock producer shall only be eligible for
            assistance under this subsection if the livestock producer--
                    ``(i) obtained a policy or plan of insurance under
                subtitle A for the grazing land incurring the losses for
                which assistance is being requested; or
                    ``(ii) filed the required paperwork, and paid the
                administrative fee by the applicable State filing deadline,
                for the noninsured crop assistance program for the grazing
                land incurring the losses for which assistance is being
                requested.
                ``(B) Waiver for socially disadvantaged, limited resource,
            or beginning farmer or rancher.--In the case of an eligible
            livestock producer that is a socially disadvantaged farmer or
            rancher or limited resource or beginning farmer or rancher, as
            determined by the Secretary, the Secretary may--
                    ``(i) waive subparagraph (A); and
                    ``(ii) provide disaster assistance under this section
                at a level that the Secretary determines to be equitable
                and appropriate.
                ``(C) Waiver for 2008 calendar year.--In the case of an
            eligible livestock producer that suffered losses on grazing
            land during the 2008 calendar year but does not meet the
            requirements of subparagraph (A), the Secretary shall waive
            subparagraph (A) if the eligible livestock producer pays a fee
            in an amount equal to the applicable noninsured crop assistance
            program fee or catastrophic risk protection plan fee required
            under subparagraph (A) to the Secretary not later than 90 days
            after the date of enactment of this subtitle.
                ``(D) Equitable relief.--
                    ``(i) In general.--The Secretary may provide equitable
                relief to an eligible livestock producer that is otherwise
                ineligible or unintentionally fails to meet the
                requirements of subparagraph (A) for the grazing land
                incurring the loss on a case-by-case basis, as determined
                by the Secretary.
                    ``(ii) 2008 calendar year.--In the case of an eligible
                livestock producer that suffered losses on grazing land
                during the 2008 calendar year, the Secretary shall take
                special consideration to provide equitable relief in cases
                in which the eligible livestock producer failed to meet the
                requirements of subparagraph (A) due to the enactment of
                this subtitle after the closing date of sales periods for
                crop insurance under subtitle A and the noninsured crop
                assistance program.
            ``(6) No duplicative payments.--
                ``(A) In general.--An eligible livestock producer may elect
            to receive assistance for grazing or pasture feed losses due to
            drought conditions under paragraph (3) or fire under paragraph
            (4), but not both for the same loss, as determined by the
            Secretary.
                ``(B) Relationship to supplemental revenue assistance.--An
            eligible livestock producer that receives assistance under this
            subsection may not also receive assistance for losses to crops
            on the same land with the same intended use under subsection
            (b).
        ``(e) Emergency Assistance for Livestock, Honey Bees, and Farm-
    Raised Fish.--
            ``(1) In general.--The Secretary shall use up to $50,000,000
        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 disease, adverse weather,
        or other conditions, such as blizzards and wildfires, as determined
        by the Secretary, that are not covered under subsection (b), (c),
        or (d).
            ``(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 shall remain available until expended.
        ``(f) 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--
                    ``(i) 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; and
                    ``(ii) under paragraph (3)(B) to eligible orchardists
                and nursery tree growers that have a production history for
                commercial purposes on planted or existing trees 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 70 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) Definitions of legal entity and person.--In this
            paragraph, the terms `legal entity' and `person' have the
            meaning given those terms in section 1001(a) of the Food
            Security Act of 1985 (7 U.S.C. 1308(a) (as amended by section
            1603 of the Food, Conservation, and Energy Act of 2008).
                ``(B) Amount.--The total amount of payments received,
            directly or indirectly, by a person or legal entity (excluding
            a joint venture or general partnership) under this subsection
            may not exceed $100,000 for any crop year, or an equivalent
            value in tree seedlings.
                ``(C) Acres.--The total quantity of acres planted to trees
            or tree seedlings for which a person or legal entity shall be
            entitled to receive payments under this subsection may not
            exceed 500 acres.
        ``(g) Risk Management Purchase Requirement.--
            ``(1) In general.--Except as otherwise provided in this
        section, the eligible producers on a farm shall not be eligible for
        assistance under this section (other than subsection (c)) if the
        eligible producers on the farm--
                ``(A) in the case of each insurable commodity of the
            eligible producers on the farm, did not obtain a policy or plan
            of insurance under subtitle A (excluding a crop insurance pilot
            program under that subtitle); or
                ``(B) in the case of each noninsurable commodity of the
            eligible producers on the farm, did not file the required
            paperwork, and pay the administrative fee by the applicable
            State filing deadline, for the noninsured crop assistance
            program.
            ``(2) Minimum.--To be considered to have obtained insurance
        under paragraph (1)(A), 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 for socially disadvantaged, limited resource, or
        beginning farmer or rancher.--With respect to eligible producers
        that are socially disadvantaged farmers or ranchers or limited
        resource 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) Waiver for 2008 crop year.--In the case of an eligible
        producer that suffered losses in an insurable commodity or
        noninsurable commodity during the 2008 crop year but does not meet
        the requirements of paragraph (1), the Secretary shall waive
        paragraph (1) if the eligible producer pays a fee in an amount
        equal to the applicable noninsured crop assistance program fee or
        catastrophic risk protection plan fee required under paragraph (1)
        to the Secretary not later than 90 days after the date of enactment
        of this subtitle.
            ``(5) Equitable relief.--
                ``(A) In general.--The Secretary may provide equitable
            relief to eligible producers on a farm that are otherwise
            ineligible or 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.
                ``(B) 2008 crop year.--In the case of eligible producers on
            a farm that suffered losses in an insurable commodity or
            noninsurable commodity during the 2008 crop year, the Secretary
            shall take special consideration to provide equitable relief in
            cases in which the eligible producers failed to meet the
            requirements of paragraph (1) due to the enactment of this
            subtitle after the closing date of sales periods for crop
            insurance under subtitle A and the noninsured crop assistance
            program.
        ``(h) Payment Limitations.--
            ``(1) Definitions of legal entity and person.--In this
        subsection, the terms `legal entity' and `person' have the meaning
        given those terms in section 1001(a) of the Food Security Act of
        1985 (7 U.S.C. 1308(a) (as amended by section 1603 of the Food,
        Conservation, and Energy Act of 2008).
            ``(2) Amount.--The total amount of disaster assistance payments
        received, directly or indirectly, by a person or legal entity
        (excluding a joint venture or general partnership) under this
        section (excluding payments received under subsection (f)) may not
        exceed $100,000 for any crop year.
            ``(3) 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.
            ``(4) Direct attribution.--Subsections (e) and (f) of section
        1001 of the Food Security Act of 1985 (7 U.S.C. 1308) or any
        successor provisions relating to direct attribution shall apply
        with respect to assistance provided under this section.
        ``(i) 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, 2011, as determined by the Secretary.
        ``(j) No Duplicative Payments.--In implementing any other program
    which makes disaster assistance payments (except for indemnities made
    under subtitle A 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), (e), or (f).
        ``(k) Application.--
            ``(1) In general.--Subject to paragraph (2) and notwithstanding
        any provision of subtitle A, subtitle A shall not apply to this
        subtitle.
            ``(2) Cross references.--Paragraph (1) shall not apply to a
        specific reference in this subtitle to a provision of subtitle
        A.''.
        (b) Transition.--For purposes of the 2008 crop year, the Secretary
    shall carry out subsections (f)(4) and (h) of section 531 of the
    Federal Crop Insurance Act (as added by subsection (a)) in accordance
    with the terms and conditions of sections 1001 through 1001D of the
    Food Security Act of 1985 (16 U.S.C. 1308 et seq.), as in effect on
    September 30, 2007.
        (c) Conforming Amendments.--
            (1) Section 501 of the Federal Crop Insurance Act (7 U.S.C.
        1501) is amended by striking the section heading and enumerator and
        inserting the following:

                    ``Subtitle A--Federal Crop Insurance Act

        ``SEC. 501. SHORT TITLE AND APPLICATION OF OTHER PROVISIONS.''.
            (2) Subtitle A of the Federal Crop Insurance Act (as designated
        under paragraph (1)) is amended--
                (A) by striking ``This title'' each place it appears and
            inserting ``This subtitle''; and
                (B) by striking ``this title'' each place it appears and
            inserting ``this subtitle''.
    SEC. 12034. FISHERIES DISASTER ASSISTANCE.
        Of the funds of the Commodity Credit Corporation, the Secretary of
    Agriculture shall transfer to the Secretary of Commerce $170,000,000
    for fiscal year 2008 for the National Marine Fisheries Service to
    distribute to commercial and recreational members of the fishing
    communities affected by the salmon fishery failure in the States of
    California, Oregon, and Washington designated under section 312(a) of
    the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C.
    1861a(a)) on May 1, 2008, in accordance with that section.

                Subtitle B--Small Business Disaster Loan Program

    SEC. 12051. SHORT TITLE.
        This subtitle may be cited as the ``Small Business Disaster
    Response and Loan Improvements Act of 2008''.
    SEC. 12052. DEFINITIONS.
        In this subtitle--
            (1) the terms ``Administration'' and ``Administrator'' mean the
        Small Business Administration and the Administrator thereof,
        respectively;
            (2) 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;
            (3) 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)), as amended by this Act;
            (4) the term ``disaster update period'' means the period
        beginning on the date on which the President declares a major
        disaster (including any major disaster relating to which the
        Administrator declares eligibility for additional disaster
        assistance under paragraph (9) 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 on which such declaration terminates;
            (5) 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);
            (6) the term ``small business concern'' has the meaning given
        that term under section 3 of the Small Business Act (15 U.S.C.
        632); and
            (7) 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. 12061. ECONOMIC INJURY DISASTER LOANS TO NONPROFITS.
        (a) In General.--Section 7(b)(2) of the Small Business Act (15
    U.S.C. 636(b)(2)) is amended--
            (1) in the matter preceding subparagraph (A)--
                (A) by inserting after ``small business concern'' the
            following: ``, private nonprofit organization,''; and
                (B) by inserting after ``the concern'' the following: ``,
            the organization,''; and
            (2) in subparagraph (D) by inserting after ``small business
        concerns'' the following: ``, private nonprofit organizations,''.
        (b) Conforming Amendment.--Section 7(c)(5)(C) of the Small Business
    Act (15 U.S.C. 636(c)(5)(C)) is amended by inserting after ``business''
    the following: ``, private nonprofit organization,''.
    SEC. 12062. COORDINATION OF DISASTER ASSISTANCE PROGRAMS WITH FEMA.
        The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 37 as section 44; and
            (2) by inserting after section 36 the following:
      ``SEC. 37. COORDINATION OF DISASTER ASSISTANCE PROGRAMS WITH FEMA.
        ``(a) Coordination Required.--The Administrator shall ensure that
    the disaster assistance programs of the Administration are coordinated,
    to the maximum extent practicable, with the disaster assistance
    programs of the Federal Emergency Management Agency.
        ``(b) Regulations Required.--The Administrator, in consultation
    with the Administrator of the Federal Emergency Management Agency,
    shall establish regulations to ensure that each application for
    disaster assistance is submitted as quickly as practicable to the
    Administration or directed to the appropriate agency under the
    circumstances.
        ``(c) Completion; Revision.--The initial regulations shall be
    completed not later than 270 days after the date of the enactment of
    the Small Business Disaster Response and Loan Improvements Act of 2008.
    Thereafter, the regulations shall be revised on an annual basis.
        ``(d) Report.--The Administrator shall include a report on the
    regulations whenever the Administration submits the report required by
    section 43.''.
    SEC. 12063. 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 (3), the
    following:
            ``(4) Coordination with fema.--
                ``(A) In general.--Notwithstanding any other provision of
            law, for any disaster declared under this subsection or major
            disaster (including any major disaster relating to which the
            Administrator declares eligibility for additional disaster
            assistance under paragraph (9)), 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 any major
            disaster relating to which the Administrator declares
            eligibility for additional disaster assistance under paragraph
            (9)), 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.
            ``(5) Public awareness of disasters.--If a disaster is declared
        under this subsection or the Administrator declares eligibility for
        additional disaster assistance under paragraph (9), 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.
        (c) Technical and Conforming Amendments.--
            (1) In general.--Section 3 of the Small Business Act (15 U.S.C.
        632) is amended by adding at the end the following:
        ``(s) Major Disaster.--In this Act, 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).''.
            (2) Technical correction.--Section 7(b)(2) of the Small
        Business Act (15 U.S.C. 636(b)(2)) is amended 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.)''.
    SEC. 12064. 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 Administrator shall submit to Congress a report
    containing all findings and recommendations of the study conducted
    under subsection (a).
    SEC. 12065. 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 major disaster)''.
    SEC. 12066. 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 (5), as added by this
    Act, the following:
            ``(6) 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 (including any
            major disaster relating to which the Administrator declares
            eligibility for additional disaster assistance under paragraph
            (9)), 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 (including any major disaster relating to
            which the Administrator declares eligibility for additional
            disaster assistance under paragraph (9)), 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. 12067. INFORMATION TRACKING AND FOLLOW-UP SYSTEM.
        The Small Business Act is amended by inserting after section 37, as
    added by this Act, the following:
      ``SEC. 38. INFORMATION TRACKING AND FOLLOW-UP SYSTEM FOR DISASTER
          ASSISTANCE.
        ``(a) System Required.--The Administrator shall develop, implement,
    or maintain a centralized information system to track communications
    between personnel of the Administration and applicants for disaster
    assistance. The system shall ensure that whenever an applicant for
    disaster assistance communicates with such personnel on a matter
    relating to the application, the following information is recorded:
            ``(1) The method of communication.
            ``(2) The date of communication.
            ``(3) The identity of the personnel.
            ``(4) A summary of the subject matter of the communication.
        ``(b) Follow-up Required.--The Administrator shall ensure that an
    applicant for disaster assistance receives, by telephone, mail, or
    electronic mail, follow-up communications from the Administration at
    all critical stages of the application process, including the
    following:
            ``(1) When the Administration determines that additional
        information or documentation is required to process the
        application.
            ``(2) When the Administration determines whether to approve or
        deny the loan.
            ``(3) When the primary contact person managing the loan
        application has changed.''.
    SEC. 12068. INCREASED DEFERMENT PERIOD.
        (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 (e), as so redesignated, the
        following:
        ``(f) Additional Requirements for 7(b) Loans.--
            ``(1) Increased deferment authorized.--
                ``(A) In general.--In making loans under subsection (b),
            the Administrator may provide, to the person receiving the
            loan, an option to defer repayment on the loan.
                ``(B) Period.--The period of a deferment under subparagraph
            (A) may not exceed 4 years.''.
        (b) 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. 12069. DISASTER PROCESSING REDUNDANCY.
        The Small Business Act (15 U.S.C. 631 et seq.) is amended by
    inserting after section 38, as added by this Act, the following:
      ``SEC. 39. DISASTER PROCESSING REDUNDANCY.
        ``(a) In General.--The Administrator shall ensure that the
    Administration has in place a facility for disaster loan processing
    that, whenever the Administration's primary facility for disaster loan
    processing becomes unavailable, is able to take over all disaster loan
    processing from that primary facility within 2 days.
        ``(b) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as may be necessary to carry out this
    section.''.
    SEC. 12070. NET EARNINGS CLAUSES PROHIBITED.
        Section 7 of the Small Business Act (15 U.S.C. 636) is amended by
    inserting after subsection (f), as added by this Act, the following:
        ``(g) Net Earnings Clauses Prohibited for 7(b) Loans.--In making
    loans under subsection (b), the Administrator shall not require the
    borrower to pay any non-amortized amount for the first five years after
    repayment begins.''.
    SEC. 12071. ECONOMIC INJURY DISASTER LOANS IN CASES OF ICE STORMS AND
    BLIZZARDS.
        Section 3(k)(2) of the Small Business Act (15 U.S.C. 632(k)(2)) is
    amended--
            (1) in subparagraph (A) by striking ``and'';
            (2) in subparagraph (B) by striking the period at the end and
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(C) ice storms and blizzards.''.
    SEC. 12072. 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 use and
        integrate District Office personnel of the Administration in the
        response to a major disaster, including information on the use 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) Biennial Disaster Simulation Exercise.--
            (1) Exercise required.--The Administrator shall conduct a
        disaster simulation exercise at least once every 2 fiscal years.
        The exercise shall include the participation of, at a minimum, not
        less than 50 percent of the individuals in the disaster reserve
        corps and shall test, at maximum capacity, all of the information
        technology and telecommunications systems of the Administration
        that are vital to the activities of the Administration during such
        a disaster.
            (2) Report.--The Administrator shall include a report on the
        disaster simulation exercises conducted under paragraph (1) each
        time the Administration submits a report required under section 43
        of the Small Business Act, as added by this Act.
    SEC. 12073. DISASTER PLANNING RESPONSIBILITIES.
        (a) Assignment of Small Business Administration Disaster Planning
    Responsibilities.--The disaster planning function of the Administration
    shall be assigned to an individual appointed by the Administrator who--
            (1) is not an employee of the Office of Disaster Assistance of
        the Administration;
            (2) has proven management ability;
            (3) has substantial knowledge in the field of disaster
        readiness and emergency response; and
            (4) has demonstrated significant experience in the area of
        disaster planning.
        (b) Responsibilities.--The individual assigned the disaster
    planning function of the Administration shall report directly and
    solely to the Administrator and shall be responsible for--
            (1) creating, maintaining, and implementing the comprehensive
        disaster response plan of the Administration described in section
        12072;
            (2) ensuring there are in-service and pre-service training
        procedures for the disaster response staff of the Administration;
            (3) coordinating and directing the training exercises of the
        Administration relating to disasters, including disaster simulation
        exercises and disaster exercises coordinated with other government
        departments and agencies; and
            (4) other responsibilities relevant to disaster planning and
        readiness, as determined by the Administrator.
        (c) Coordination.--In carrying out the responsibilities described
    in subsection (b), the individual assigned the disaster planning
    function of the Administration shall coordinate with--
            (1) the Office of Disaster Assistance of the Administration;
            (2) the Administrator of the Federal Emergency Management
        Agency; and
            (3) other Federal, State, and local disaster planning offices,
        as necessary.
        (d) Resources.--The Administrator shall ensure that the individual
    assigned the disaster planning function of the Administration has
    adequate resources to carry out the duties under this section.
        (e) 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 individual the disaster planning function of the Administration;
            (2) information detailing the background and expertise of the
        individual assigned; and
            (3) information on the status of the implementation of the
        responsibilities described in subsection (b).
    SEC. 12074. 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 (6), as
    added by this Act, the following:
            ``(7) 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 1,000.
                ``(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.''.
    SEC. 12075. COMPREHENSIVE DISASTER RESPONSE PLAN.
        The Small Business Act (15 U.S.C. 631 et seq.) is amended inserting
    after section 39, as added by this Act, the following:
      ``SEC. 40. COMPREHENSIVE DISASTER RESPONSE PLAN.
        ``(a) Plan Required.--The Administrator shall develop, implement,
    or maintain a comprehensive written disaster response plan. The plan
    shall include the following:
            ``(1) For each region of the Administration, a description of
        the disasters most likely to occur in that region.
            ``(2) For each disaster described under paragraph (1)--
                ``(A) an assessment of the disaster;
                ``(B) an assessment of the demand for Administration
            assistance most likely to occur in response to the disaster;
                ``(C) an assessment of the needs of the Administration,
            with respect to such resources as information technology,
            telecommunications, human resources, and office space, to meet
            the demand referred to in subparagraph (B); and
                ``(D) guidelines pursuant to which the Administration will
            coordinate with other Federal agencies and with State and local
            authorities to best respond to the demand referred to in
            subparagraph (B) and to best use the resources referred to in
            that subparagraph.
        ``(b) Completion; Revision.--The first plan required by subsection
    (a) shall be completed not later than 180 days after the date of the
    enactment of this section. Thereafter, the Administrator shall update
    the plan on an annual basis and following any major disaster relating
    to which the Administrator declares eligibility for additional disaster
    assistance under section 7(b)(9).
        ``(c) Knowledge Required.--The Administrator shall carry out
    subsections (a) and (b) through an individual with substantial
    knowledge in the field of disaster readiness and emergency response.
        ``(d) Report.--The Administrator shall include a report on the plan
    whenever the Administration submits the report required by section
    43.''.
    SEC. 12076. PLANS TO SECURE SUFFICIENT OFFICE SPACE.
        The Small Business Act is amended by inserting after section 40, as
    added by this Act, the following:
      ``SEC. 41. PLANS TO SECURE SUFFICIENT OFFICE SPACE.
        ``(a) Plans Required.--The Administrator shall develop long-term
    plans to secure sufficient office space to accommodate an expanded
    workforce in times of disaster.
        ``(b) Report.--The Administrator shall include a report on the
    plans developed under subsection (a) each time the Administration
    submits a report required under section 43.''.
    SEC. 12077. APPLICANTS THAT HAVE BECOME A MAJOR SOURCE OF EMPLOYMENT
    DUE TO CHANGED ECONOMIC CIRCUMSTANCES.
        Section 7(b)(3)(E) of the Small Business Act (15 U.S.C.
    636(b)(3)(E)) is amended by inserting after ``constitutes'' the
    following: ``, or have become due to changed economic circumstances,''.
    SEC. 12078. 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
    (7), as added by this Act, the following:
            ``(8) 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''; and
            (2) 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. 12079. 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.
        (c) Limitation on Use of Other Funds.--The Administrator may carry
    out this section only with amounts appropriated in advance specifically
    to carry out this section.

                           PART II--DISASTER LENDING

    SEC. 12081. ELIGIBILITY FOR ADDITIONAL DISASTER ASSISTANCE.
        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) Declaration of eligibility for additional disaster
        assistance.--
                ``(A) In general.--If the President declares a major
            disaster, the Administrator may declare eligibility for
            additional disaster assistance in accordance with this
            paragraph.
                ``(B) Threshold.--A major disaster for which the
            Administrator declares eligibility for additional disaster
            assistance under this paragraph shall--
                    ``(i) have 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;
                    ``(ii) be comparable to the description of a
                catastrophic incident in the National Response Plan of the
                Administration, or any successor thereto, unless there is
                no successor to such plan, in which case this clause shall
                have no force or effect; and
                    ``(iii) be of such size and scope that--

                        ``(I) the disaster assistance programs under the
                    other paragraphs under this subsection are incapable of
                    providing adequate and timely assistance to individuals
                    or business concerns located within the disaster area;
                    or
                        ``(II) a significant number of business concerns
                    outside the disaster area have suffered disaster-
                    related substantial economic injury as a result of the
                    incident.''.

    SEC. 12082. ADDITIONAL ECONOMIC INJURY DISASTER LOAN ASSISTANCE.
        Paragraph (9) of section 7(b) of the Small Business Act (15 U.S.C.
    636(b)), as added by section 12081, is amended by adding at the end the
    following:
                ``(C) Additional economic injury disaster loan
            assistance.--
                    ``(i) In general.--If the Administrator declares
                eligibility for additional disaster assistance under this
                paragraph, the Administrator may make such loans under this
                subparagraph (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 eligible small
                business concerns located anywhere in the United States.
                    ``(ii) Processing time.--

                        ``(I) In general.--If the Administrator determines
                    that the average processing time for applications for
                    disaster loans under this subparagraph relating to a
                    specific major disaster is more than 15 days, the
                    Administrator shall give priority to the processing of
                    such applications submitted by eligible small business
                    concerns located inside the disaster area, until the
                    Administrator determines that the average processing
                    time for such applications is not more than 15 days.
                        ``(II) Suspension of applications from outside
                    disaster area.--If the Administrator determines that
                    the average processing time for applications for
                    disaster loans under this subparagraph relating to a
                    specific major disaster is more than 30 days, the
                    Administrator shall suspend the processing of such
                    applications submitted by eligible small business
                    concerns located outside the disaster area, until the
                    Administrator determines that the average processing
                    time for such applications is not more than 15 days.

                    ``(iii) Loan terms.--A loan under this subparagraph
                shall be made on the same terms as a loan under paragraph
                (2).
                ``(D) Definitions.--In this paragraph--
                    ``(i) the term `disaster area' means the area for which
                the applicable major disaster was declared;
                    ``(ii) the term `disaster-related substantial economic
                injury' means economic harm to a business concern that
                results in the inability of the business concern to--

                        ``(I) meet its obligations as it matures;
                        ``(II) meet its ordinary and necessary operating
                    expenses; or
                        ``(III) market, produce, or provide a product or
                    service ordinarily marketed, produced, or provided by
                    the business concern because the business concern
                    relies on materials from the disaster area or sells or
                    markets in the disaster area; and

                    ``(iii) the term `eligible small business concern'
                means a small business concern--

                        ``(I) that has suffered disaster-related
                    substantial economic injury as a result of the
                    applicable major disaster; and
                        ``(II)(aa) for which not less than 25 percent of
                    the market share of that small business concern is from
                    business transacted in the disaster area;
                        ``(bb) for which not less than 25 percent of an
                    input into a production process of that small business
                    concern is from the disaster area; or
                        ``(cc) that relies on a provider located in the
                    disaster area for a service that is not readily
                    available elsewhere.''.

    SEC. 12083. PRIVATE DISASTER LOANS.
        (a) In General.--Section 7 of the Small Business Act (15 U.S.C.
    636) is amended 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 relating to which the
            Administrator declares eligibility for additional disaster
            assistance under subsection (b)(9), during the period of that
            major disaster declaration;
                ``(B) the term `eligible individual' means an individual
            who is eligible for disaster assistance under subsection (b)(1)
            relating to a major disaster relating to which the
            Administrator declares eligibility for additional disaster
            assistance under subsection (b)(9);
                ``(C) the term `eligible small business concern' means a
            business concern that is--
                    ``(i) a small business concern, as defined under this
                Act; or
                    ``(ii) a small business concern, as defined in section
                103 of the Small Business Investment Act of 1958;
                ``(D) the term `preferred lender' means a lender
            participating in the Preferred Lender Program;
                ``(E) the term `Preferred Lender Program' has the meaning
            given that term in subsection (a)(2)(C)(ii); and
                ``(F) the term `qualified private lender' means any
            privately-owned bank or other lending institution that--
                    ``(i) is not a preferred lender; and
                    ``(ii) the Administrator determines meets the criteria
                established under paragraph (10).
            ``(2) Program required.--The Administrator shall carry out a
        program, to be known as the Private Disaster Assistance program,
        under which the Administration may guarantee timely payment of
        principal and interest, as scheduled, on any loan made to an
        eligible small business concern located in a disaster area and to
        an eligible individual.
            ``(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 amount.--The maximum amount of a loan guaranteed
            under this subsection shall be $2,000,000.
            ``(6) Terms and conditions.--A loan guaranteed under this
        subsection shall be made under the same terms and conditions as a
        loan under subsection (b).
            ``(7) Lenders.--
                ``(A) In general.--A loan guaranteed under this subsection
            made to--
                    ``(i) a qualified individual may be made by a preferred
                lender; and
                    ``(ii) a qualified small business concern may be made
                by a qualified private lender or by a preferred lender that
                also makes loans to qualified individuals.
                ``(B) Compliance.--If the Administrator determines that a
            preferred lender knowingly failed to comply with the
            underwriting standards for loans guaranteed under this
            subsection or violated the terms of the standard operating
            procedure agreement between that preferred lender and the
            Administration, the Administrator shall do 1 or more of the
            following:
                    ``(i) Exclude the preferred lender from participating
                in the program under this subsection.
                    ``(ii) Exclude the preferred lender from participating
                in the Preferred Lender Program for a period of not more
                than 5 years.
            ``(8) 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 or preferred lender an origination fee
            for a loan guaranteed under this subsection in an amount agreed
            upon in advance between the qualified private lender or
            preferred lender and the Administrator.
            ``(9) Documentation.--A qualified private lender or preferred
        lender may use its own loan documentation for a loan guaranteed by
        the Administrator under this subsection, 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 (10).
            ``(10) 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 2008, 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 2008, 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.
            ``(11) 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 and other terms
            and conditions.--Funds appropriated to the Administration to
            carry out this subsection, may be used by the Administrator to
            meet the loan terms and conditions specified in paragraph (6).
            ``(12) Purchase of loans.--The Administrator may enter into an
        agreement with a qualified private lender or preferred lender to
        purchase any loan guaranteed under this subsection.''.
        (b) Effective Date.--The amendments made by this section shall
    apply to any major disaster declared on or after the date of enactment
    of this Act.
    SEC. 12084. IMMEDIATE DISASTER ASSISTANCE PROGRAM.
        The Small Business Act is amended by inserting after section 41, as
    added by this Act, the following:
      ``SEC. 42. IMMEDIATE DISASTER ASSISTANCE PROGRAM.
        ``(a) Program Required.--The Administrator shall carry out a
    program, to be known as the Immediate Disaster Assistance program,
    under which the Administration participates on a deferred (guaranteed)
    basis in 85 percent of the balance of the financing outstanding at the
    time of disbursement of the loan if such balance is less than or equal
    to $25,000 for businesses affected by a disaster.
        ``(b) Eligibility Requirement.--To receive a loan guaranteed under
    subsection (a), the applicant shall also apply for, and meet basic
    eligibility standards for, a loan under subsection (b) or (c) of
    section 7.
        ``(c) Use of Proceeds.--A person who receives a loan under
    subsection (b) or (c) of section 7 shall use the proceeds of that loan
    to repay all loans guaranteed under subsection (a), if any, before
    using the proceeds for any other purpose.
        ``(d) Loan Terms.--
            ``(1) No prepayment penalty.--There shall be no prepayment
        penalty on a loan guaranteed under subsection (a).
            ``(2) Repayment.--A person who receives a loan guaranteed under
        subsection (a) and who is disapproved for a loan under subsection
        (b) or (c) of section 7, as the case may be, shall repay the loan
        guaranteed under subsection (a) not later than the date established
        by the Administrator, which may not be earlier than 10 years after
        the date on which the loan guaranteed under subsection is
        disbursed.
        ``(e) Approval or Disapproval.--The Administrator shall ensure that
    each applicant for a loan under the program receives a decision
    approving or disapproving of the application within 36 hours after the
    Administration receives the application.''.
    SEC. 12085. EXPEDITED DISASTER ASSISTANCE LOAN PROGRAM.
        (a) Definition.--In this section, 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 under which the
    Administration may, on an expedited basis, guarantee timely payment of
    principal and interest, as scheduled on any loan made to an eligible
    small business concern under paragraph (9) 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 applicable major 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 guaranteed 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 300 basis
            points above the interest rate established by the Board of
            Governors of the Federal Reserve System that 1 bank charges
            another for reserves that are lent on an overnight basis on the
            date the loan is made;
                (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)), as amended by this Act;
                (F) may be refinanced as part of any subsequent disaster
            assistance provided under section 7(b) of the Small Business
            Act (15 U.S.C. 636(b)), as amended by this 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. 12086. GULF COAST DISASTER LOAN REFINANCING PROGRAM.
        (a) In General.--The Administrator may carry out a program to
    refinance Gulf Coast disaster loans (in this section referred to as the
    ``program'').
        (b) Terms.--The terms of a Gulf Coast disaster loan refinanced
    under the program shall be identical to the terms of the original loan,
    except that the Administrator may provide an option to defer repayment
    on the loan. A deferment under the program shall end not later than 4
    years after the date on which the initial disbursement under the
    original loan was made.
        (c) Amount.--The amount of a Gulf Coast disaster loan refinanced
    under the program shall not exceed the amount of the original loan.
        (d) Disclosure of Accrued Interest.--If the Administrator provides
    an option to defer repayment under the program, the Administrator shall
    disclose the accrued interest that must be paid under the option.
        (e) Definition.--In this section, the term ``Gulf Coast disaster
    loan'' means a loan--
            (1) made under section 7(b) of the Small Business Act (15
        U.S.C. 636(b));
            (2) in response to Hurricane Katrina of 2005, Hurricane Rita of
        2005, or Hurricane Wilma of 2005; and
            (3) to a small business concern located in a county or parish
        designated by the Administrator as a disaster area by reason of a
        hurricane described in paragraph (2) under disaster declaration
        10176, 10177, 10178, 10179, 10180, 10181, 10203, 10204, 10205,
        10206, 10222, or 10223.
        (f) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as may be necessary to carry out this section.

                            PART III--MISCELLANEOUS

    SEC. 12091. REPORTS ON DISASTER ASSISTANCE.
        (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 submit 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 submitted 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) Weekly Disaster Updates to Congress for Presidentially Declared
    Disasters.--
            (1) In general.--Each week during a disaster update period, the
        Administration shall submit 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 submitted 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) Periods When Additional Disaster Assistance Is Made
    Available.--
            (1) In general.--During any period for which the Administrator
        declares eligibility for additional disaster assistance under
        paragraph (9) of section 7(b) of the Small Business Act (15 U.S.C.
        632(b)), as amended by this Act, the Administrator shall, on a
        monthly basis, submit 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 disaster
        assistance operations of the Administration with respect to the
        applicable major disaster.
            (2) Contents.--Each report submitted under paragraph (1) shall
        specify--
                (A) the number of applications for disaster assistance
            distributed;
                (B) the number of applications for disaster assistance
            received;
                (C) the average time for the Administration to approve or
            disapprove an application for disaster assistance;
                (D) the amount of disaster loans approved;
                (E) the average time for initial disbursement of disaster
            loan proceeds; and
                (F) the amount of disaster loan proceeds disbursed.
        (d) 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.
        (e) 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.
        (f) 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).
        (g) Reports on Disaster Assistance.--The Small Business Act is
    amended by inserting after section 42, as added by this Act, the
    following:
      ``SEC. 43. ANNUAL REPORTS ON DISASTER ASSISTANCE.
        ``Not later than 45 days after the end of a fiscal year, 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 on the disaster assistance
    operations of the Administration for that fiscal year. The report
    shall--
            ``(1) specify the number of Administration personnel involved
        in such operations;
            ``(2) describe any material changes to those operations, such
        as changes to technologies used or to personnel responsibilities;
            ``(3) describe and assess the effectiveness of the
        Administration in responding to disasters during that fiscal year,
        including a description of the number and amounts of loans made for
        damage and for economic injury; and
            ``(4) describe the plans of the Administration for preparing to
        respond to disasters during the next fiscal year.''.

                         TITLE XIII--COMMODITY FUTURES

    SEC. 13001. SHORT TITLE.
        This title may be cited as the ``CFTC Reauthorization Act of
    2008''.

                         Subtitle A--General Provisions

    SEC. 13101. COMMISSION AUTHORITY OVER AGREEMENTS, CONTRACTS OR
    TRANSACTIONS IN FOREIGN CURRENCY.
        (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)(AA) a futures commission merchant that
                        is primarily or substantially engaged in the
                        business activities described in section 1a(20) of
                        this Act, is registered under this Act, is not a
                        person described in item (bb) of this subclause,
                        and maintains adjusted net capital equal to or in
                        excess of the dollar amount that applies for
                        purposes of clause (ii) of this subparagraph; or
                            ``(BB) an affiliated person of a futures
                        commission merchant that is primarily or
                        substantially engaged in the business activities
                        described in section 1a(20) of this Act, is
                        registered under this Act, and is not a person
                        described in item (bb) of this subclause, if the
                        affiliated person maintains adjusted net capital
                        equal to or in excess of the dollar amount that
                        applies for purposes of clause (ii) of this
                        subparagraph and is not a person described in such
                        item (bb), and the futures commission merchant
                        makes and keeps records under section 4f(c)(2)(B)
                        of this Act concerning the futures and other
                        financial activities of the 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);
                            ``(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))); or
                            ``(gg) a retail foreign exchange dealer that
                        maintains adjusted net capital equal to or in
                        excess of the dollar amount that applies for
                        purposes of clause (ii) of this subparagraph and is
                        registered in such capacity with the Commission,
                        subject to such terms and conditions as the
                        Commission shall prescribe, and is a member of a
                        futures association registered under section 17.
                    ``(ii) The dollar amount that applies for purposes of
                this clause is--

                        ``(I) $10,000,000, beginning 120 days after the
                    date of the enactment of this clause;
                        ``(II) $15,000,000, beginning 240 days after such
                    date of enactment; and
                        ``(III) $20,000,000, beginning 360 days after such
                    date of enactment.

                    ``(iii) Notwithstanding items (cc) and (gg) 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 retail foreign exchange
                dealer, or an affiliated person of a futures commission
                merchant registered under this Act that is not also a
                person described in any of item (aa), (bb), (dd), (ee), or
                (ff) of clause (i)(II) of this subparagraph.
                    ``(iv)(I) Notwithstanding items (cc) and (gg) of clause
                (i)(II), a person, unless registered in such capacity as
                the Commission by rule, regulation, or order shall
                determine and a member of a futures association registered
                under section 17, shall not--

                        ``(aa) solicit or accept orders from any person
                    that is not an eligible contract participant in
                    connection with agreements, contracts, or transactions
                    described in clause (i) entered into with or to be
                    entered into with a person who is not described in item
                    (aa), (bb), (dd), (ee), or (ff) of clause (i)(II);
                        ``(bb) exercise discretionary trading authority or
                    obtain written authorization to exercise discretionary
                    trading authority over any account for or on behalf of
                    any person that is not an eligible contract participant
                    in connection with agreements, contracts, or
                    transactions described in clause (i) entered into with
                    or to be entered into with a person who is not
                    described in item (aa), (bb), (dd), (ee), or (ff) of
                    clause (i)(II); or
                        ``(cc) operate or solicit funds, securities, or
                    property for any pooled investment vehicle that is not
                    an eligible contract participant in connection with
                    agreements, contracts, or transactions described in
                    clause (i) entered into with or to be entered into with
                    a person who is not described in item (aa), (bb), (dd),
                    (ee), or (ff) of clause (i)(II).

                    ``(II) Subclause (I) of this clause shall not apply
                to--

                        ``(aa) any person described in any of item (aa),
                    (bb), (dd), (ee), or (ff) of clause (i)(II);
                        ``(bb) any such person's associated persons; or
                        ``(cc) any person who would be exempt from
                    registration if engaging in the same activities in
                    connection with transactions conducted on or subject to
                    the rules of a contract market or a derivatives
                    transaction execution facility.

                    ``(III) Notwithstanding items (cc) and (gg) of clause
                (i)(II), the Commission may make, promulgate, and enforce
                such rules and regulations as, in the judgment of the
                Commission, are reasonably necessary to effectuate any of
                the provisions of, or to accomplish any of the purposes of,
                this Act in connection with the activities of persons
                subject to subclause (I).
                    ``(IV) Subclause (III) of this clause shall not apply
                to--

                        ``(aa) any person described in any of item (aa)
                    through (ff) of clause (i)(II);
                        ``(bb) any such person's associated persons; or
                        ``(cc) any person who would be exempt from
                    registration if engaging in the same activities in
                    connection with transactions conducted on or subject to
                    the rules of a contract market or a derivatives
                    transaction execution facility.

                    ``(v) Notwithstanding items (cc) and (gg) of clause
                (i)(II), the Commission may make, promulgate, and enforce
                such rules and regulations as, in the judgment of the
                Commission, are reasonably necessary to effectuate any of
                the provisions of, or to accomplish any of the purposes of,
                this Act in connection with agreements, contracts, or
                transactions described in clause (i) which are offered, or
                entered into, by a person described in item (cc) or (gg) of
                clause (i)(II).
                ``(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
                    item (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) of this clause 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 item (aa), (bb),
                (dd), (ee), or (ff) of subparagraph (B)(i)(II); or
                    ``(bb) any such person's associated persons.
                ``(III) The Commission may make, promulgate, and enforce
            such rules and regulations as, in the judgment of the
            Commission, are reasonably necessary to effectuate any of the
            provisions of or to accomplish any of the purposes of this Act
            in connection with agreements, contracts, or transactions
            described in clause (i) of this subparagraph if the agreements,
            contracts, or transactions are offered, or entered into, by a
            person that is not described in item (aa) through (ff) of
            subparagraph (B)(i)(II).
                ``(iii)(I) A person, unless registered in such capacity as
            the Commission by rule, regulation, or order shall determine
            and a member of a futures association registered under section
            17, shall not--
                    ``(aa) solicit or accept orders from any person that is
                not an eligible contract participant in connection with
                agreements, contracts, or transactions described in clause
                (i) of this subparagraph entered into with or to be entered
                into with a person who is not described in item (aa), (bb),
                (dd), (ee), or (ff) of subparagraph (B)(i)(II);
                    ``(bb) exercise discretionary trading authority or
                obtain written authorization to exercise written trading
                authority over any account for or on behalf of any person
                that is not an eligible contract participant in connection
                with agreements, contracts, or transactions described in
                clause (i) of this subparagraph entered into with or to be
                entered into with a person who is not described in item
                (aa), (bb), (dd), (ee), or (ff) of subparagraph (B)(i)(II);
                or
                    ``(cc) operate or solicit funds, securities, or
                property for any pooled investment vehicle that is not an
                eligible contract participant in connection with
                agreements, contracts, or transactions described in clause
                (i) of this subparagraph entered into with or to be entered
                into with a person who is not described in item (aa), (bb),
                (dd), (ee), or (ff) of subparagraph (B)(i)(II).
                ``(II) Subclause (I) of this clause shall not apply to--
                    ``(aa) any person described in item (aa), (bb), (dd),
                (ee), or (ff) of subparagraph (B)(i)(II);
                    ``(bb) any such person's associated persons; or
                    ``(cc) any person who would be exempt from registration
                if engaging in the same activities in connection with
                transactions conducted on or subject to the rules of a
                contract market or a derivatives transaction execution
                facility.
                ``(III) The Commission may make, promulgate, and enforce
            such rules and regulations as, in the judgment of the
            Commission, are reasonably necessary to effectuate any of the
            provisions of, or to accomplish any of the purposes of, this
            Act in connection with the activities of persons subject to
            subclause (I).
                ``(IV) Subclause (III) of this clause shall not apply to--
                    ``(aa) any person described in item (aa) through (ff)
                of subparagraph (B)(i)(II);
                    ``(bb) any such person's associated persons; or
                    ``(cc) any person who would be exempt from registration
                if engaging in the same activities in connection with
                transactions conducted on or subject to the rules of a
                contract market or a derivatives transaction execution
                facility.
                ``(iv) 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.
                ``(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.--The following provisions 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 at
    such other time as the Commodity Futures Trading Commission shall
    determine:
            (1) Subparagraphs (B)(i)(II)(gg), (B)(iv), and (C)(iii) of
        section 2(c)(2).
            (2) The provisions of section 2(c)(2)(B)(i)(II)(cc) that set
        forth adjusted net capital requirements, and the provisions of such
        section that require a futures commission merchant to be primarily
        or substantially engaged in certain business activities.
    SEC. 13102. 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 all 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. 13103. 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 clause (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) of this section, or
        section 9(a)(2), a civil penalty of not more than the greater of
        $1,000,000 or triple the monetary gain to the person for each such
        violation,''.
        (b) Nonenforcement of Rules of Government or Other Violations.--
    Section 6b of such 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 section 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 such
    Act (7 U.S.C. 13a-1(d)) is amended by striking all that precedes
    paragraph (2) 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 section 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(a) of such Act (7 U.S.C.
    13(a)) is amended in the matter preceding paragraph (1)--
            (1) by striking ``(or $500,000 in the case of a person who is
        an individual)''; and
            (2) by striking ``five years'' and inserting ``10 years''.
    SEC. 13104. 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. 13105. TECHNICAL AND CONFORMING AMENDMENTS.
        (a) Section 4a(e) of the Commodity Exchange Act (7 U.S.C. 6a(e)) is
    amended--
            (1) by inserting ``or certified by a registered entity pursuant
        to section 5c(c)(1)'' after ``approved by the Commission'' ; and
            (2) 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 9 of such Act (7 U.S.C. 13) is amended--
            (1) in subsection (f)(1), by striking the period and inserting
        ``; or''; and
            (2) by redesignating subsection (f) as subsection (e).
        (i) 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)''.
        (j) Section 1a(33)(A) of such Act (7 U.S.C. 1a(33)(A)) is amended
    by striking ``transactions'' and all that follows and inserting
    ``transactions--
                    ``(i) by accepting bids or offers made by other
                participants that are open to multiple partipants in the
                facility or system; or
                    ``(ii) through the interaction of multiple bids or
                multiple offers within a system with a pre-determined non-
                discretionary automated trade matching and execution
                algorithm.''.
        (k) Section 14(d) of such Act (7 U.S.C. 18(d)) is amended--
            (1) by inserting ``(1)'' before ``If''; and
            (2) by adding after and below the end the following:
            ``(2) A reparation award shall be directly enforceable in
        district court as if it were a judgment pursuant to section 1963 of
        title 28, United States Code. This paragraph shall operate
        retroactively from the effective date of its enactment, and shall
        apply to all reparation awards for which a proceeding described in
        paragraph (1) is commenced within 3 years of the date of the
        Commission's order.''.
    SEC. 13106. PORTFOLIO MARGINING AND SECURITY INDEX ISSUES.
        (a) The Secretary of the Treasury, the Chairman of the Board of
    Governors of the Federal Reserve System, the Chairman of the Securities
    and Exchange Commission, and the Chairman of the Commodity Futures
    Trading Commission 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, 2009, risk-based portfolio margining for
        security options and security futures products (as defined in
        section 1a(32) of the Commodity Exchange Act); and
            (2) by June 30, 2009, 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).''.
        (b) Standards Applicable to Significant Price Discovery
    Contracts.--Section 2(h) of such Act (7 U.S.C. 2(h)) is amended by
    adding at the end the following:
            ``(7) Significant price discovery 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 (D),
            under such rules and regulations as the Commission shall
            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, or a
                significant price discovery contract or contracts trading
                on or subject to the rules of an electronic trading
                facility, so as to permit market participants to
                effectively arbitrage between the markets by simultaneously
                maintaining positions or executing trades in the contracts
                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 effect on other
                agreements, contracts, or transactions listed for trading
                on or subject to the rules of a designated contract market,
                a derivatives transaction 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 (including
                discretion to account for differences between cleared and
                uncleared significant price discovery contracts) 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 the 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, where
                    necessary and appropriate, position limitations or
                    position accountability for speculators in significant
                    price discovery contracts, taking into account
                    positions in other agreements, contracts, and
                    transactions that are treated by a derivatives clearing
                    organization, whether registered or not registered, as
                    fungible with such significant price discovery
                    contracts to reduce the potential threat of market
                    manipulation 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 to the extent appropriate for significant price
                    discovery contracts
                        ``(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 the contracts and
                    any limitations on access to the electronic trading
                    facility with respect to the contracts.
                        ``(VIII) Conflict of interest.--The electronic
                    trading facility, with respect to significant price
                    discovery contracts, 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 of interest.

                        ``(IX) Antitrust considerations.--Unless necessary
                    or appropriate to achieve the purposes of this Act, the
                    electronic trading facility, with respect to
                    significant price discovery contracts, 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.--
                    ``(i) Clearing.--The Commission shall take into
                consideration differences between cleared and uncleared
                significant price discovery contracts when reviewing the
                implementation of the core principles by an electronic
                trading facility.
                    ``(ii) Review.--As part of the Commission's continual
                monitoring and surveillance activities, the Commission
                shall, not less frequently than annually, evaluate, as
                appropriate, all the agreements, contracts, or transactions
                conducted on an electronic trading facility in reliance on
                the exemption provided in paragraph (3) to determine
                whether they serve a significant price discovery function
                as described in subparagraph (B) of this paragraph.''.
    SEC. 13202. LARGE TRADER REPORTING.
        (a) Reporting and Recordkeeping.--Section 4g(a) of the Commodity
    Exchange Act (7 U.S.C. 6g(a)) is amended by inserting ``, and in any
    significant price discovery contract traded or executed on an
    electronic trading facility or any agreement, contract, or transaction
    that is treated by a derivatives clearing organization, whether
    registered or not registered, as fungible with a significant price
    discovery contract'' after ``elsewhere''.
        (b) Reports of Positions Equal to or in Excess of Trading Limits.--
    Section 4i of such Act (7 U.S.C. 6i) is amended--
            (1) by inserting ``, or any significant price discovery
        contract traded or executed on an electronic trading facility or
        any agreement, contract, or transaction that is treated by a
        derivatives clearing organization, whether registered or not
        registered, as fungible with a significant price discovery
        contract'' after ``subject to the rules of any contract market or
        derivatives transaction execution facility''; and
            (2) in the matter following paragraph (2), by inserting ``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 such 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) Section 2(a)(1)(A) of such Act (7 U.S.C. 2(a)(1)(A)) is amended
    by inserting after ``future delivery'' the following: ``(including
    significant price discovery contracts)''.
        (d) Section 2(h)(3) of such 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 such Act (7 U.S.C. 2(h)(4)) is amended--
            (1) in subparagraph (B), by inserting ``and, for a significant
        price discovery contract, requiring large trader reporting,'' after
        ``proscribing fraud'';
            (2) by striking ``and'' at the end of subparagraph (C); and
            (3) 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; and
                ``(E) such other provisions of this Act as are applicable
            by their terms to significant price discovery contracts or to
            registered entities or electronic trading facilities with
            respect to significant price discovery contracts.''.
        (f) Section 2(h)(5)(B)(iii)(I) of such 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 such 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 such 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 limitations or accountability.--To reduce the
        potential threat of market manipulation 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 such 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 such Act (7 U.S.C. 7a-2(b)) is amended--
            (1) by striking paragraph (1) and inserting the 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 such 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 such 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
    ``hearing on the record: 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,''.
        (n) Section 22(b)(1) of such Act (7 U.S.C. 25(b)(1)) is amended by
    inserting ``section 2(h)(7) or'' before ``sections 5''.
    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.--
            (1) The Commodity Futures Trading Commission shall--
                (A) not later than 180 days after the date of the enactment
            of this Act, issue a proposed rule regarding the implementation
            of section 2(h)(7) of the Commodity Exchange Act; and
                (B) not later than 270 days after the date of enactment of
            this Act, issue a final rule regarding the implementation.
            (2) In its rulemaking pursuant to paragraph (1) of this
        subsection, the Commission shall include the standards, terms, and
        conditions under which an electronic trading facility will have the
        responsibility to notify the Commission that an agreement,
        contract, or transaction conducted in reliance on the exemption
        provided in section 2(h)(3) of the Commodity Exchange Act may
        perform a price discovery function.
        (c) Significant Price Discovery Determinations.--With respect to
    any electronic trading facility operating on the effective date of the
    final rule issued pursuant to subsection (b)(1), the Commission shall
    complete a review of the agreements, contracts, and transactions of the
    facility not later than 180 days after that effective date to determine
    whether any such agreement, contract, or transaction performs a
    significant price discovery function.

                            TITLE XIV--MISCELLANEOUS
       Subtitle A--Socially Disadvantaged Producers and Limited Resource
                                   Producers

    SEC. 14001. IMPROVED PROGRAM DELIVERY BY 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--
            (1) in the first sentence--
                (A) by striking ``Agricultural Stabilization and
            Conservation Service, Soil Conservation Service, and Farmers
            Home Administration offices'' and inserting ``Farm Service
            Agency and Natural Resources Conservation Service''; and
                (B) by inserting ``where there has been a need
            demonstrated'' after ``include''; and
            (2) by striking the second sentence.
    SEC. 14002. FORECLOSURE.
        (a) In General.--Section 331A of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1981a) is amended:
            (1) by inserting ``(a)'' after ``Sec. 331A.''; and
            (2) by adding at the end the following:
        ``(b) Moratorium.--
            ``(1) In general.--Subject to the other provisions of this
        subsection, effective beginning on the date of the enactment of
        this subsection, there shall be in effect a moratorium, with
        respect to farmer program loans made under subtitle A, B, or C, on
        all 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 program
            discrimination that is accepted by the Department as valid; or
                ``(B) files a claim of program discrimination that is
            accepted by the Department as valid.
            ``(2) Waiver of interest and offsets.--During the period of the
        moratorium, the Secretary shall waive the accrual of interest and
        offsets on all farmer program loans made under subtitle A, B, or C
        for which loan acceleration or foreclosure proceedings have been
        suspended under 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 loan acceleration or
        foreclosure proceedings have been suspended under paragraph (1).''.
        (b) Foreclosure Report.--
            (1) In general.--Not later than 1 year after the date of the
        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 farmer program
        loans made under subtitle A, B, or C 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 the 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 the
        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. 14003. RECEIPT FOR SERVICE OR DENIAL OF SERVICE FROM CERTAIN
    DEPARTMENT OF AGRICULTURE AGENCIES.
        Section 2501A of the Food, Agriculture, Conservation, and Trade Act
    of 1990 (7 U.S.C. 2279-1) is amended by adding at the end the following
    new subsection:
        ``(e) Receipt for Service or Denial of Service.--In any case in
    which a current or prospective producer or landowner, in person or in
    writing, requests from the Farm Service Agency, the Natural Resources
    Conservation Service, or an agency of the Rural Development Mission
    Area any benefit or service offered by the Department to agricultural
    producers or landowners and, at the time of the request, also requests
    a receipt, the Secretary shall issue, on the date of the request, a
    receipt to the producer or landowner that contains--
            ``(1) the date, place, and subject of the request; and
            ``(2) the action taken, not taken, or recommended to the
        producer or landowner.''.
    SEC. 14004. OUTREACH AND TECHNICAL ASSISTANCE FOR SOCIALLY
    DISADVANTAGED FARMERS OR RANCHERS.
        (a) Outreach and Technical Assistance Program.--
            (1) Program requirements.--Paragraph (2) of section 2501(a) of
        the Food, Agriculture, Conservation, and Trade Act of 1990 (7
        U.S.C. 2279(a)) is amended to read as follows:
            ``(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 current and prospective socially
                disadvantaged farmers or ranchers in a linguistically
                appropriate manner; and
                    ``(ii) improving the participation of those farmers and
                ranchers in Department programs, as reported under section
                2501A.''.
            (2) Grants and contracts under program.--Section 2501(a)(3) of
        the Food, Agriculture, Conservation, and Trade Act of 1990 (7
        U.S.C. 2279(a)(3)) is amended--
                (A) 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
                (B) by adding at the end the following new subparagraph:
                ``(D) 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, and make publicly available, an annual report that
            includes a list of the following:
                    ``(i) The recipients of funds made available under the
                program.
                    ``(ii) The activities undertaken and services provided.
                    ``(iii) The number of current and prospective socially
                disadvantaged farmers or ranchers served and outcomes of
                such service.
                    ``(iv) The problems and barriers identified by entities
                in trying to increase participation by current and
                prospective socially disadvantaged farmers or ranchers.''.
            (3) Funding and limitation on use of funds.--Section 2501(a)(4)
        of the Food, Agriculture, Conservation, and Trade Act of 1990 (7
        U.S.C. 2279(a)(4)) is amended--
                (A) by striking subparagraph (A) and inserting the
            following new subparagraph:
                ``(A) In general.--Of the funds of the Commodity Credit
            Corporation, the Secretary shall make available to carry out
            this section--
                    ``(i) $15,000,000 for fiscal year 2009; and
                    ``(ii) $20,000,000 for each of fiscal years 2010
                through 2012.''.
                (B) by adding at the end the following new subparagraph:
                ``(C) Limitation on use of funds for administrative
            expenses.--Not more than 5 percent of the amounts made
            available under subparagraph (A) for a fiscal year may be used
            for expenses related to administering the program under this
            section.''.
        (b) Eligible Entity Defined.--Section 2501(e)(5)(A)(ii) of the
    Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
    2279(e)(5)(A)(ii)) is amended by striking ``work with socially
    disadvantaged farmers or ranchers during the 2-year period'' and
    inserting ``work with, and on behalf of, socially disadvantaged farmers
    or ranchers during the 3-year period''.
    SEC. 14005. 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 or ranchers in agricultural production.''.
    SEC. 14006. TRANSPARENCY AND ACCOUNTABILITY FOR SOCIALLY DISADVANTAGED
    FARMERS OR RANCHERS.
        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 new subsections:
        ``(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 or ranchers by computing for each program of
        the Department of Agriculture that serves agricultural producers
        and 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 compiled 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.
            ``(4) Public availability of report.--The Secretary shall
        maintain and make readily available to the public, via website and
        otherwise in electronic and paper form, the report described in
        paragraph (3).
        ``(d) Limitations on Use of Data.--
            ``(1) Privacy protections.--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. 14007. 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 14006, in the conduct of oversight and evaluation of civil
    rights compliance.
    SEC. 14008. MINORITY FARMER ADVISORY COMMITTEE.
        (a) Establishment.--Not later than 18 months after the date of the
    enactment of this Act, the Secretary of Agriculture shall establish an
    advisory committee, to be known as the ``Advisory Committee on Minority
    Farmers'' (in this section referred to as the ``Committee'').
        (b) Duties.--The Committee shall provide advice to the Secretary
    on--
            (1) the implementation of section 2501 of the Food,
        Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279);
            (2) methods of maximizing the participation of minority farmers
        and ranchers in Department of Agriculture programs; and
            (3) civil rights activities within the Department as such
        activities relate to participants in such programs.
        (c) Membership.--
            (1) In general.--The Committee shall be composed of not more
        than 15 members, who shall be appointed by the Secretary, and shall
        include--
                (A) not less than four socially disadvantaged farmers or
            ranchers (as defined in section 2501(e)(2) of the Food,
            Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
            2279(e)(2)));
                (B) not less than two representatives of nonprofit
            organizations with a history of working with minority farmers
            and ranchers;
                (C) not less than two civil rights professionals;
                (D) not less than two representatives of institutions of
            higher education with demonstrated experience working with
            minority farmers and ranchers; and
                (E) such other persons as the Secretary considers
            appropriate.
            (2) Ex-officio members.--The Secretary may appoint such
        employees of the Department of Agriculture as the Secretary
        considers appropriate to serve as ex-officio members of the
        Committee.
    SEC. 14009. 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
        the 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. 14010. 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. 14011. SENSE OF CONGRESS RELATING TO CLAIMS BROUGHT BY SOCIALLY
    DISADVANTAGED FARMERS OR RANCHERS.
        It is the sense of Congress that all pending 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 should be resolved in an expeditious and just manner.
    SEC. 14012. 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) Department.--The term ``Department'' means the Department
        of Agriculture.
            (3) 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.
            (4) 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
        (h)) shall be made exclusively from funds made available under
        subsection (i).
            (2) Maximum amount.--The total amount of payments and debt
        relief pursuant to actions 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 previously denied that determination.
        (e) Loan Data.--
            (1) Report to person submitting petition.--
                (A) In general.--Not later than 120 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 and noncredit benefits,
            as appropriate, made within the claimant's county (or if no
            documents are found, within an adjacent county as determined by
            the claimant), by the Department during the period beginning on
            January 1 of the year preceding the period covered by the
            complaint and ending on December 31 of the year following the
            period.
                (B) Requirements.--A report under subparagraph (A) shall
            contain information on all persons whose application for a loan
            or benefit was accepted, including--
                    (i) the race of the applicant;
                    (ii) the date of application;
                    (iii) the date of the loan or benefit decision, as
                appropriate;
                    (iv) the location of the office making the loan or
                benefit decision, as appropriate;
                    (v) all data relevant to the decisionmaking process for
                the loan or benefit, as appropriate; and
                    (vi) all data relevant to the servicing of the loan or
                benefit, as appropriate.
            (2) No personally identifiable information.--The reports
        provided pursuant to paragraph (1) shall not contain any
        information that would identify any person who applied for a loan
        from the Department.
            (3) Reporting deadline.--
                (A) In general.--The Secretary shall--
                    (i) provide to claimants the reports required under
                paragraph (1) as quickly as practicable after the Secretary
                receives notice of a complaint filed by a claimant under
                subsection (b); and
                    (ii) devote such resources of the Department as are
                necessary to make providing the reports expeditiously a
                high priority of the Department.
                (B) Extension.--A court may extend the deadline for
            providing the report required in a particular case under
            paragraph (1) if the Secretary establishes that meeting the
            deadline is not feasible and demonstrates a continuing effort
            and commitment to provide the required report expeditiously.
        (f) Expedited Resolutions Authorized.--
            (1) In general.--Any person filing a complaint under this
        section for discrimination in the application for, or making or
        servicing of, a farm loan, at the discretion of the person, may
        seek liquidated damages of $50,000, discharge of the debt that was
        incurred under, or affected by, the 1 or more programs that were
        the subject of the 1 or more discrimination claims that are 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--
                (A) if only such damages, debt discharge, and tax payment
            are sought, the complainant shall be able to prove the case of
            the complainant by substantial evidence (as defined in section
            1(l) of the consent decree); and
                (B) 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.
            (2) Noncredit claims.--
                (A) Standard.--In any case in which a claimant asserts a
            noncredit claim under a benefit program of the Department, the
            court shall determine the merits of the claim in accordance
            with section 9(b)(i) of the consent decree.
                (B) Relief.--A claimant who prevails on a claim of
            discrimination involving a noncredit benefit program of the
            Department shall be entitled to a payment by the Department in
            a total amount of $3,000, without regard to the number of such
            claims on which the claimant prevails.
        (g) Actual Damages.--A claimant who files a claim under this
    section for discrimination under subsection (b) but not under
    subsection (f) and who prevails on the claim shall be entitled to
    actual damages sustained by the claimant.
        (h) Limitation on Foreclosures.--Notwithstanding any other
    provision of law, during the pendency of a Pigford claim, the Secretary
    may not begin acceleration on or foreclosure of a loan if--
            (1) the borrower is a Pigford claimant; and
            (2) makes a prima facie case in an appropriate administrative
        proceeding that the acceleration or foreclosure is related to a
        Pigford claim.
        (i) 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.
        (j) Reporting Requirements.--
            (1) In general.--Not later than 180 days after the date of the
        enactment of this Act and every 180 days thereafter until the funds
        made available under subsection (i) are depleted, the Secretary
        shall submit to the Committee on the Judiciary of the House of
        Representatives and the Committee on the Judiciary of the Senate a
        report that describes the status of available funds under
        subsection (i) and the number of pending claims under subsection
        (f).
            (2) Depletion of funds report.--In addition to the reports
        required under paragraph (1), the Secretary shall submit to the
        Committee on the Judiciary of the House of Representatives and the
        Committee on the Judiciary of the Senate a report that notifies the
        Committees when 75 percent of the funds made available under
        subsection (i)(1) have been depleted.
        (k) Termination of Authority.--The authority to file a claim under
    this section terminates 2 years after the date of the enactment of this
    Act.
    SEC. 14013. OFFICE OF ADVOCACY AND OUTREACH.
        (a) In General.--The Department of Agriculture Reorganization Act
    of 1994 is amended by inserting after section 226A (7 U.S.C. 6933) the
    following:
    ``SEC. 226B. OFFICE OF ADVOCACY AND OUTREACH.
        ``(a) Definitions.--In this section:
            ``(1) Beginning farmer or rancher.--The term `beginning farmer
        or rancher' has the meaning given the term in section 343(a) of the
        Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)).
            ``(2) Office.--The term `Office' means the Office of Advocacy
        and Outreach established under this section.
            ``(3) Socially disadvantaged farmer or rancher.--The term
        `socially disadvantaged farmer or rancher' has the meaning given
        the term in section 2501(e) of the Food, Agriculture, Conservation,
        and Trade Act of 1990 (7 U.S.C. 2279(e)).
        ``(b) Establishment and Purpose.--
            ``(1) In general.--The Secretary shall establish within the
        executive operations of the Department an office to be known as the
        `Office of Advocacy and Outreach'--
                ``(A) to improve access to programs of the Department; and
                ``(B) to improve the viability and profitability of--
                    ``(i) small farms and ranches;
                    ``(ii) beginning farmers or ranchers; and
                    ``(iii) socially disadvantaged farmers or ranchers.
            ``(2) Director.--The Office shall be headed by a Director, to
        be appointed by the Secretary from among the competitive service.
        ``(c) Duties.--The duties of the Office shall be to ensure small
    farms and ranches, beginning farmers or ranchers, and socially
    disadvantaged farmers or ranchers access to, and equitable
    participation in, programs and services of the Department by--
            ``(1) establishing and monitoring the goals and objectives of
        the Department to increase participation in programs of the
        Department by small, beginning, or socially disadvantaged farmers
        or ranchers;
            ``(2) assessing the effectiveness of Department outreach
        programs;
            ``(3) developing and implementing a plan to coordinate outreach
        activities and services provided by the Department;
            ``(4) providing input to the agencies and offices on
        programmatic and policy decisions;
            ``(5) measuring outcomes of the programs and activities of the
        Department on small farms and ranches, beginning farmers or
        ranchers, and socially disadvantaged farmers or ranchers programs;
            ``(6) recommending new initiatives and programs to the
        Secretary; and
            ``(7) carrying out any other related duties that the Secretary
        determines to be appropriate.
        ``(d) Socially Disadvantaged Farmers Group.--
            ``(1) Establishment.--The Secretary shall establish within the
        Office the Socially Disadvantaged Farmers Group.
            ``(2) Outreach and assistance.--The Socially Disadvantaged
        Farmers Group--
                ``(A) shall carry out section 2501 of the Food,
            Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
            2279); and
                ``(B) in the case of activities described in section
            2501(a) of that Act, may conduct such activities through other
            agencies and offices of the Department.
            ``(3) Socially disadvantaged farmers and farmworkers.--The
        Socially Disadvantaged Farmers Group shall oversee the operations
        of--
                ``(A) the Advisory Committee on Minority Farmers
            established under section 14009 of the Food, Conservation, and
            Energy Act of 2008; and
                ``(B) the position of Farmworker Coordinator established
            under subsection (f).
            ``(4) Other duties.--
                ``(A) In general.--The Socially Disadvantaged Farmers Group
            may carry out other duties to improve access to, and
            participation in, programs of the Department by socially
            disadvantaged farmers or ranchers, as determined by the
            Secretary.
                ``(B) Office of outreach and diversity.--The Office of
            Advocacy and Outreach shall carry out the functions and duties
            of the Office of Outreach and Diversity carried out by the
            Assistant Secretary for Civil Rights as such functions and
            duties existed immediately before the date of the enactment of
            this section.
        ``(e) Small Farms and Beginning Farmers and Ranchers Group.--
            ``(1) Establishment.--The Secretary shall establish within the
        Office the Small Farms and Beginning Farmers and Ranchers Group.
            ``(2) Duties.--
                ``(A) Oversee offices.--The Small Farms and Beginning
            Farmers and Ranchers Group shall oversee the operations of the
            Office of Small Farms Coordination established by Departmental
            Regulation 9700-1 (August 3, 2006).
                ``(B) Beginning farmer and rancher development program.--
            The Small Farms and Beginning Farmers and Ranchers Group shall
            consult with the National Institute for Food and Agriculture on
            the administration of the beginning farmer and rancher
            development program established under section 7405 of the Farm
            Security and Rural Investment Act of 2002 (7 U.S.C. 3319f).
                ``(C) Advisory committee for beginning farmers and
            ranchers.--The Small Farms and Beginning Farmers and Ranchers
            Group shall coordinate the activities of the Group with the
            Advisory Committee for Beginning Farmers and Ranchers
            established under section 5(b) of the Agricultural Credit
            Improvement Act of 1992 (7 U.S.C. 1621 note; Public Law 102-
            554).
                ``(D) Other duties.--The Small Farms and Beginning Farmers
            and Ranchers Group may carry out other duties to improve access
            to, and participation in, programs of the Department by small
            farms and ranches and beginning farmers or ranchers, as
            determined by the Secretary.
        ``(f) Farmworker Coordinator.--
            ``(1) Establishment.--The Secretary shall establish within the
        Office the position of Farmworker Coordinator (referred to in this
        subsection as the `Coordinator').
            ``(2) Duties.--The Secretary shall delegate to the Coordinator
        responsibility for the following:
                ``(A) Assisting in administering the program established by
            section 2281 of the Food, Agriculture, Conservation, and Trade
            Act of 1990 (42 U.S.C. 5177a).
                ``(B) Serving as a liaison to community-based nonprofit
            organizations that represent and have demonstrated experience
            serving low-income migrant and seasonal farmworkers.
                ``(C) 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.
                ``(D) Consulting within the Office and with other entities
            to better integrate farmworker perspectives, concerns, and
            interests into the ongoing programs of the Department.
                ``(E) Consulting with appropriate institutions on research,
            program improvements, or agricultural education opportunities
            that assist low-income and migrant seasonal farmworkers.
                ``(F) Assisting farmworkers in becoming agricultural
            producers or landowners.
            ``(3) Authorization of appropriations.--There are authorized to
        be appropriated such sums as are necessary to carry out this
        subsection for each of fiscal years 2009 through 2012.''.
        (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 7511(b), is further amended--
            (1) in paragraph (5), by striking ``; or'' and inserting ``;'';
            (2) in paragraph (6), by striking the period and inserting ``;
        or''; and
            (3) by adding at the end the following new paragraph:
            ``(7) the authority of the Secretary to establish in the
        Department the Office of Advocacy and Outreach in accordance with
        section 226B.''.

                       Subtitle B--Agricultural Security

    SEC. 14101. SHORT TITLE.
        This subtitle may be cited as the ``Agricultural Security
    Improvement Act of 2008''.
    SEC. 14102. DEFINITIONS.
        In this subtitle:
            (1) Agent.--The term ``agent'' means a nuclear, biological,
        chemical, or radiological substance that causes agricultural
        disease or the adulteration of products regulated by the Secretary
        of Agriculture under any provision of law.
            (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 as it relates to the adulteration of
            products regulated by the Secretary of Agriculture under any
            provision of law that is caused by exposure to an agent; or
                (C) the environment as it relates to agriculture
            facilities, farmland, and air and water within the immediate
            vicinity of an area associated with an agricultural disease or
            outbreak.
            (3) Agricultural countermeasure.--The term ``agricultural
        countermeasure''--
                (A) means a product, practice, or technology that is
            intended to enhance or maintain the agricultural biosecurity of
            the United States; and
                (B) does not include a product, practice, or technology
            used solely in response to a human medical incident or public
            health emergency not related to agriculture.
            (4) Agricultural disease.--The term ``agricultural disease''
        has the meaning given the term by the Secretary.
            (5) Agricultural disease emergency.--The term ``agricultural
        disease emergency'' means an incident of agricultural disease that
        requires prompt action to prevent significant damage to people,
        plants, or animals.
            (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 or appears to be committed with the intent
            to--
                    (i) intimidate or coerce a civilian population; or
                    (ii) disrupt the agricultural industry in order to
                influence the policy of a government by intimidation or
                coercion.
            (7) Animal.--The term ``animal'' has the meaning given the term
        in section 10403 of the Animal Health Protection Act of 2002 (7
        U.S.C. 8302).
            (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
            to protect animal health;
                (B) the formulation, production, and subsequent
            modification of those products or technologies;
                (C) the conduct of in vitro and in vivo studies;
                (D) the conduct of field, efficacy, and safety studies;
                (E) the preparation of an application for marketing
            approval for submission to an applicable agency; or
                (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 Federal
            Government approval.
            (10) Plant.--The term ``plant'' has the meaning given the term
        in section 411 of the Plant Protection Act of 2000 (7 U.S.C. 7702).
            (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.

                        CHAPTER 1--AGRICULTURAL SECURITY

    SEC. 14111. OFFICE OF HOMELAND SECURITY.
        (a) Establishment.--There is established within the Department the
    Office of Homeland Security (in this section referred to as the
    ``Office'').
        (b) Director.--The Office shall be headed by a Director of Homeland
    Security, who shall be appointed by the Secretary.
        (c) Responsibilities.--The Director of Homeland Security shall--
            (1) coordinate all homeland security activities of the
        Department, including integration and coordination of interagency
        emergency response plans for--
                (A) agricultural disease emergencies;
                (B) agroterrorist acts; and
                (C) other threats to agricultural biosecurity;
            (2) act as the primary liaison on behalf of the Department with
        other Federal departments and agencies on the coordination of
        efforts and interagency activities pertaining to agricultural
        biosecurity; and
            (3) advise the Secretary on policies, regulations, processes,
        budget, and actions pertaining to homeland security.
    SEC. 14112. AGRICULTURAL BIOSECURITY COMMUNICATION CENTER.
        (a) Establishment.--The Secretary shall establish a communication
    center within the Department to--
            (1) collect and disseminate information and prepare for an
        agricultural disease emergency, agroterrorist act, or other threat
        to agricultural biosecurity; and
            (2) coordinate activities described in paragraph (1) among
        agencies and offices within the Department.
        (b) Relation to Existing DHS Communication Systems.--
            (1) Consistency and coordination.--The communication center
        established under subsection (a) shall, to the maximum extent
        practicable, share and coordinate the dissemination of timely
        information with the Department of Homeland Security and other
        communication systems of appropriate Federal departments and
        agencies.
            (2) Avoiding redundancies.--Paragraph (1) shall not be
        construed to impede, conflict with, or duplicate the communications
        activities performed by the Secretary of Homeland Security under
        any provision of law.
        (c) Authorization of Appropriations.--There is authorized to be
    appropriated such sums as may be necessary to carry out this section
    for each of fiscal years 2008 through 2012.
    SEC. 14113. ASSISTANCE TO BUILD LOCAL CAPACITY IN AGRICULTURAL
    BIOSECURITY PLANNING, PREPAREDNESS, AND RESPONSE.
        (a) Advanced Training Programs.--
            (1) Grant assistance.--The Secretary shall establish a
        competitive grant program 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 may be 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 establish a
        competitive grant and low-interest loan assistance program to
        assist States in assessing agricultural disease response
        capability.
            (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.

                          CHAPTER 2--OTHER PROVISIONS

    SEC. 14121. RESEARCH AND DEVELOPMENT OF AGRICULTURAL COUNTERMEASURES.
        (a) Grant Program.--
            (1) Competitive grant program.--The Secretary shall establish a
        competitive grant program to encourage basic and applied research
        and the development of qualified agricultural countermeasures.
            (2) Waiver in emergencies.--The Secretary may waive the
        requirement under paragraph (1) that a grant be provided on a
        competitive basis 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) waiving the requirement would lead to the rapid
            development of a qualified agricultural countermeasure, as
            determined by the Secretary.
        (b) 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. 14122. AGRICULTURAL BIOSECURITY GRANT PROGRAM.
        (a) Competitive Grant Program.--The Secretary shall establish a
    competitive grant program to promote the development of teaching
    programs in agriculture, veterinary medicine, and disciplines closely
    allied to the food and agriculture system to increase the number of
    trained individuals with an expertise in agricultural biosecurity.
        (b) Eligibility.--The Secretary may award a grant under this
    section only to an entity that is--
            (1) an accredited school of veterinary medicine; or
            (2) a department of an institution of higher education with a
        primary focus on--
                (A) comparative medicine;
                (B) veterinary science; or
                (C) agricultural biosecurity.
        (c) Preference.--The Secretary shall give preference in awarding
    grants based on the ability of an applicant--
            (1) to increase the number of veterinarians or individuals with
        advanced degrees in food and agriculture disciplines who are
        trained in agricultural biosecurity practice areas;
            (2) to increase research capacity in areas of agricultural
        biosecurity; or
            (3) to fill critical agricultural biosecurity shortage
        situations outside of the Federal Government.
        (d) Use of Funds..--
            (1) In general.--Amounts received under this section shall be
        used by a grantee to pay--
                (A) costs associated with the acquisition of equipment and
            other capital costs relating to the expansion of food,
            agriculture, and veterinary medicine teaching programs in
            agricultural biosecurity;
                (B) 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; or
                (C) other capacity and infrastructure program costs that
            the Secretary considers appropriate.
            (2) Limitation.--Funds received under this section may not be
        used for the construction, renovation, or rehabilitation of a
        building or facility.
        (e) Authorization of Appropriations.--There are authorized to be
    appropriated sums as are necessary to carry out this section for each
    of fiscal years 2008 through 2012, to remain available until expended.

                   Subtitle C--Other Miscellaneous Provisions

    SEC. 14201. 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) Fees.--
            ``(1) 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.
            ``(2) Announcement of fees.--The Secretary shall announce a
        uniform classification fee and any applicable surcharge for
        classification services not later than June 1 of the year in which
        the fee applies.
        ``(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. 14202. 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. 14203. 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. 14204. 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 an entity described in section 379C(a) of the
    Consolidated Farm and Rural Development Act (7 U.S.C. 2008q(a)).
        (b) Grants.--
            (1) In general.--To assist agricultural employers and
        farmworkers by improving the supply, stability, safety, and
        training of the agricultural labor force, the Secretary may provide
        grants to eligible entities for use in providing services to assist
        farmworkers who are citizens or otherwise legally present in the
        United States in securing, retaining, upgrading, or returning from
        agricultural jobs.
            (2) Eligible services.--The services referred to in paragraph
        (1) include--
                (A) agricultural labor skills development;
                (B) the provision of agricultural labor market information;
                (C) transportation;
                (D) short-term housing while in transit to an agricultural
            worksite;
                (E) workplace literacy and assistance with English as a
            second language;
                (F) health and safety instruction, including ways of
            safeguarding the food supply of the United States; and
                (G) such other services as the Secretary determines to be
            appropriate.
        (c) Limitation on Administrative Expenses.--Not more than 15
    percent of the funds made available to carry out this section for a
    fiscal year may be used to pay for administrative expenses.
        (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. 14205. 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. 14206. REPORT ON STORED QUANTITIES OF PROPANE.
        (a) Report.--
            (1) In general.--Not later than 240 days after the date of the
        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 of the Senate and
        the Committee on Agriculture 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) shall include a
        description of--
                (A) 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;
                (B) 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;
                (C) the number of propane facilities initially determined
            to be high risk by the Secretary;
                (D) 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;
                (E) the number of propane facilities that file an appeal of
            a finding under the final rule described in paragraph (1); and
                (F) 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
            (3) Form.--The report under paragraph (1) shall be submitted in
        unclassified form, but may include a classified annex.
        (b) Educational Outreach.--Not later than 30 days after the date of
    the 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.
    SEC. 14207. 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)--
                (A) in paragraph (1), by striking ``, if any animal in the
            venture was moved in interstate or foreign commerce''; and
                (B) in the heading of paragraph (2), by striking ``state''
            and inserting ``State'';
            (2) in subsection (b)--
                (A) by striking ``(b) It shall be'' and inserting the
            following:
        ``(b) Buying, Selling, Delivering, Possessing, Training, or
    Transporting Animals for Participation in Animal Fighting Venture.--It
    shall be''; and
                (B) by striking ``transport, deliver'' and all that follows
            through ``participate'' and inserting ``possess, train,
            transport, deliver, or receive any animal for purposes of
            having the animal participate'';
            (3) in subsection (c)--
                (A) by striking ``(c) It shall be'' and inserting the
            following:
        ``(c) Use of Postal Service or Other Interstate Instrumentality for
    Promoting or Furthering Animal Fighting Venture.--It shall be''; and
                (B) by inserting ``advertising an animal, or an instrument
            described in subsection (e), for use in an animal fighting
            venture,'' after ``for purposes of'';
            (4) in subsection (d), by striking ``(d) Notwithstanding'' and
        inserting the following:
        ``(d) Violation of State Law.--Notwithstanding'';
            (5) in subsection (e), by striking ``(e) It shall be'' and
        inserting the following:
        ``(e) Buying, Selling, Delivering, or Transporting Sharp
    Instruments for Use in Animal Fighting Venture.--It shall be'';
            (6) in subsection (f)--
                (A) by striking ``(f) The Secretary'' and inserting the
            following:
        ``(f) Investigation of Violations by Secretary; Assistance by Other
    Federal Agencies; Issuance of Search Warrant; Forfeiture; Costs
    Recoverable in Forfeiture or Civil Action.--The Secretary''; and
                (B) in the last sentence--
                    (i) by striking ``by the United States'';
                    (ii) by inserting ``(1)'' after ``owner of the
                animals''; and
                    (iii) by striking ``proceeding or in'' and inserting
                ``proceeding, or (2) in'';
            (7) in subsection (g)--
                (A) by striking ``(g) For purposes of'' and inserting the
            following:
        ``(g) Definitions.--In'';
                (B) in paragraph (1), by striking ``any event'' and all
            that follows through ``entertainment'' and inserting ``any
            event, in or affecting interstate or foreign commerce, that
            involves a fight conducted or to be conducted between at least
            2 animals for purposes of sport, wagering, or entertainment,'';
                (C) by striking paragraph (2);
                (D) in paragraph (5)--
                    (i) by striking ``dog or other''; and
                    (ii) by striking ``; and'' and inserting a period; and
                (E) by redesignating paragraphs (3) through (5) as
            paragraphs (2) through (4), respectively;
            (8) by redesignating subsections (h) and (i) as subsections (i)
        and (j), respectively;
            (9) in subsection (i) (as so redesignated), by striking
        ``(i)(1) The provisions'' and inserting the following:
        ``(i) Conflict With State Law.--
            ``(1) In general.--The provisions'';
            (10) in subsection (j) (as so redesignated), by striking ``(j)
        The criminal'' and inserting the following:
        ``(j) Criminal Penalties.--The criminal''; and
            (11) in subsection (g)(6), by striking ``(6) the conduct'' and
        inserting the following:
        ``(h) Relationship to Other Provisions.--The conduct''.
        (b) Enforcement of Animal Fighting Prohibitions.--Section 49 of
    title 18, United States Code, is amended by striking ``3 years'' and
    inserting ``5 years''.
    SEC. 14208. DEPARTMENT OF AGRICULTURE CONFERENCE TRANSPARENCY.
        (a) Report.--
            (1) Requirement.--Not later than September 30 of each year, 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 on
        conferences sponsored or held by the Department of Agriculture or
        attended by employees of the Department of Agriculture.
            (2) Contents.--Each report under paragraph (1) shall contain--
                (A) for each conference sponsored or held by the Department
            or attended by employees of the Department--
                    (i) the name of the conference;
                    (ii) the location of the conference;
                    (iii) the number of Department of Agriculture employees
                attending the conference; and
                    (iv) the costs (including travel expenses) relating to
                such conference; and
                (B) for each conference sponsored or held by the Department
            of Agriculture for which the Department awarded a procurement
            contract, a description of the contracting procedures related
            to such conference.
            (3) Exclusions.--The requirement in paragraph (1) shall not
        apply to any conference--
                (A) for which the cost to the Federal Government was less
            than $10,000; or
                (B) outside of the United States that is attended by the
            Secretary or the Secretary's designee as an official
            representative of the United States government.
        (b) Availability of Report.--Each report submitted in accordance
    with subsection (a) shall be posted in a searchable format on a
    Department of Agriculture website that is available to the public.
        (c) Definition of Conference.--In this section, the term
    ``conference''--
            (1) means a meeting that--
                (A) is held for consultation, education, awareness, or
            discussion;
                (B) includes participants from at least one agency of the
            Department of Agriculture;
                (C) is held in whole or in part at a facility outside of an
            agency of the Department of Agriculture; and
                (D) involves costs associated with travel and lodging for
            some participants; and
            (2) does not include any training program that is continuing
        education or a curriculum-based educational program, provided that
        such training program is held independent of a conference of a non-
        governmental organization.
    SEC. 14209. FEDERAL INSECTICIDE, FUNGICIDE, AND RODENTICIDE ACT
    AMENDMENTS.
        (a) 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 new paragraph:
            ``(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.''.
        (b) Container Recycling.--Section 19(a) of the Federal Insecticide,
    Fungicide, and Rodenticide Act (7 U.S.C. 136q(a)) is amended by adding
    at the end the following new paragraph:
            ``(4) Container recycling.--The Secretary may promulgate a
        regulation for the return and recycling of disposable pesticide
        containers used for the distribution or sale of registered
        pesticide products in interstate commerce. Any such regulation
        requiring recycling of disposable pesticide containers shall not
        apply to antimicrobial pesticides (as defined in section 2) or
        other pesticide products intended for non-agricultural uses.''.
    SEC. 14210. 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.--
                ``(A) In general.--The Secretary, by regulation, shall
            provide an exception to any requirement under paragraph (1) in
            any case in which a dog is imported for--
                    ``(i) research purposes; or
                    ``(ii) veterinary treatment.
                ``(B) Lawful importation into hawaii.--Paragraph (1)(C)
            shall not apply to the lawful importation of a dog into the
            State of Hawaii from the British Isles, Australia, Guam, or New
            Zealand in compliance with the applicable regulations of the
            State of Hawaii and the other requirements of this section, if
            the dog is not transported out of the State of Hawaii for
            purposes of resale at less than 6 months of age.
        ``(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 the enactment of this Act.
    SEC. 14211. PERMANENT DEBARMENT FROM PARTICIPATION IN DEPARTMENT OF
    AGRICULTURE PROGRAMS FOR FRAUD.
        (a) In General.--Subject to subsection (b), the Secretary of
    Agriculture shall permanently debar an individual, organization,
    corporation, or other entity convicted of a felony for knowingly
    defrauding the United States in connection with any program
    administered by the Department of Agriculture from any subsequent
    participation in Department of Agriculture programs.
        (b) Exceptions.--
            (1) Secretary determination.--The Secretary may reduce a
        debarment under subsection (a) to a period of not less than 10
        years if the Secretary considers it appropriate.
            (2) Food assistance.--A debarment under subsection (a) shall
        not apply with respect to participation in domestic food assistance
        programs (as defined by the Secretary).
    SEC. 14212. PROHIBITION ON CLOSURE OR RELOCATION OF COUNTY OFFICES FOR
    THE FARM SERVICE AGENCY.
        (a) Temporary Prohibition.--
            (1) In general.--Subject to paragraph (2), until the date that
        is two years after the date of the enactment of this Act, the
        Secretary of Agriculture may not close or relocate a county or
        field office of the Farm Service Agency.
            (2) Exception.--Paragraph (1) shall not apply to--
                (A) an office that is located not more than 20 miles from
            another office of the Farm Service Agency; or
                (B) the relocation of an office within the same county in
            the course of routine leasing operations.
        (b) Limitation on Closure; Notice.--
            (1) Limitation.--After the period referred to in subsection
        (a)(1), the Secretary shall, before closing any office of the Farm
        Service Agency that is located more than 20 miles from another
        office of the Farm Service Agency, to the maximum extent
        practicable, first close any offices of the Farm Service Agency
        that--
                (A) are located less than 20 miles from another office of
            the Farm Service Agency; and
                (B) have two or fewer permanent full-time employees.
            (2) Notice.--After the period referred to in subsection (a)(1),
        the Secretary of Agriculture may not close a county or field office
        of the Farm Service Agency unless--
                (A) not later than 30 days after the Secretary proposes to
            close such office, the Secretary holds a public meeting
            regarding the proposed closure in the county in which such
            office is located; and
                (B) after the public meeting referred to in subparagraph
            (A), but not less than 90 days before the date on which the
            Secretary approves the closure of such office, the Secretary
            notifies the Committee on Agriculture and the Committee on
            Appropriations of the House of Representatives, the Committee
            on Agriculture, Nutrition, and Forestry and the Committee on
            Appropriations of the Senate, each Senator representing the
            State in which the office proposed to be closed is located, and
            the member of the House of Representatives who represents the
            Congressional district in which the office proposed to be
            closed is located of the proposed closure of such office.
    SEC. 14213. USDA GRADUATE SCHOOL.
        (a) In General.--Section 921 of the Federal Agriculture Improvement
    and Reform Act of 1996 (7 U.S.C. 2279b) is amended--
            (1) in the heading, to read as follows:
        ``SEC. 921. DEPARTMENT OF AGRICULTURE EDUCATIONAL, TRAINING, AND
          PROFESSIONAL DEVELOPMENT ACTIVITIES.''; and
            (2) by striking subsection (b) and inserting the following new
        subsection:
        ``(b) Operation as Nonappropriated Fund Instrumentality.--
            ``(1) Cease operations.--Not later than October 1, 2009, the
        Secretary of Agriculture shall cease to maintain or operate a
        nonappropriated fund instrumentality of the United States to
        develop, administer, or provide educational training and
        professional development activities, including educational
        activities for Federal agencies, Federal employees, non-profit
        organizations, other entities, and members of the general public.
            ``(2) Transition.--
                ``(A) In general.--The Secretary of Agriculture is
            authorized to use funds available to the Department of
            Agriculture and such resources of the Department as the
            Secretary considers appropriate (including the assignment of
            such employees of the Department as the Secretary considers
            appropriate) to assist the General Administrative Board of the
            Graduate School in the conversion of the Graduate School to an
            entity that is non-governmental and not a nonappropriated fund
            instrumentality of the United States, including such
            privatization activities not otherwise inconsistent with law or
            regulation.
                ``(B) Termination of authority.--The authority under
            paragraph (1) shall terminate on the earlier of--
                    ``(i) the completion of the transition of the Graduate
                School to an entity that is non-governmental and not a
                nonappropriated fund instrumentality of the United States,
                as determined by the Secretary; or
                    ``(ii) September 30, 2009.''.
        (b) Procurement Procedures.--Notwithstanding the amendments made by
    subsection (a), effective on the date of the enactment of this Act, the
    Graduate School of the Department of Agriculture shall be subject to
    Federal procurement laws and regulations in the same manner and subject
    to the same requirements as a private entity providing services to the
    Federal Government.
    SEC. 14214. FINES FOR VIOLATIONS OF THE ANIMAL WELFARE ACT.
        Section 19(b) of the Animal Welfare Act (7 U.S.C. 2149(b)) is
    amended in the first sentence by striking ``not more than $2,500 for
    each such violation'' and inserting ``not more than $10,000 for each
    such violation''.
    SEC. 14215. DEFINITION OF CENTRAL FILING SYSTEM.
        Section 1324(c)(2) of the Food Security Act of 1985 (7 U.S.C.
    1631(c)(2)) is amended--
            (1) in subparagraph (C)(ii)(II), by inserting after ``such
        debtors'' the following: ``, except that the numerical list
        containing social security or taxpayer identification numbers may
        be encrypted for security purposes if the Secretary of State
        provides a method by which an effective search of the encrypted
        numbers may be conducted to determine whether the farm product at
        issue is subject to 1 or more liens''; and
            (2) in subparagraph (E)--
                (A) by striking ``paragraph (C)'' and inserting
            ``subparagraph (C)''; and
                (B) by inserting before the semicolon at the end the
            following: ``except that--
                    ``(i) the distribution of the portion of the master
                list may be in electronic, written, or printed form; and
                    ``(ii) if social security or taxpayer identification
                numbers on the master list are encrypted, the Secretary of
                State may distribute the master list only--

                        ``(I) by compact disc or other electronic media
                    that contains--

                            ``(aa) the recorded list of debtor names; and
                            ``(bb) an encryption program that enables the
                        buyer, commission merchant, and selling agent to
                        enter a social security number for matching against
                        the recorded list of encrypted social security or
                        taxpayer identification numbers; and

                        ``(II) on the written request of the buyer,
                    commission merchant, or selling agent, by paper copy of
                    the list to the requestor''.

    SEC. 14216. CONSIDERATION OF PROPOSED RECOMMENDATIONS OF STUDY ON USE
    OF CATS AND DOGS IN FEDERAL RESEARCH.
        (a) In General.--The Secretary of Agriculture shall--
            (1) review--
                (A) any independent reviews conducted by a nationally
            recognized panel of experts of the use of Class B dogs and cats
            in federally supported research to determine how frequently
            such dogs and cats are used in research by the National
            Institutes of Health; and
                (B) any recommendations proposed by such panel outlining
            the parameters of such use; and
            (2) 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 how recommendations referred to
        in paragraph (1)(B) can be applied within the Department of
        Agriculture to ensure such dogs and cats are treated in accordance
        with regulations of the Department of Agriculture.
        (b) Class B Dogs and Cats Defined.--In this section, the term
    ``Class B dogs and cats'' means dogs and cats obtained from a Class
    ``B'' licensee, as such term is defined in section 1.1 of title 9, Code
    of Federal Regulations.
    SEC. 14217. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT.
        (a) In General.--Title 40, United States Code, is amended--
            (1) by redesignating subtitle V as subtitle VI; and
            (2) by inserting after subtitle IV the following:

         ``Subtitle V--Regional Economic and Infrastructure Development

    ``Chapter.........................................................
    ``151. GENERAL PROVISIONS......................................... 15101

    ``153. REGIONAL COMMISSIONS....................................... 15301

    ``155. FINANCIAL ASSISTANCE....................................... 15501

    ``157. ADMINISTRATIVE PROVISIONS.................................. 15701

                        ``CHAPTER 1--GENERAL PROVISIONS

    ``Sec.
    ``15101. Definitions.
    ``Sec. 15101. Definitions
        ``In this subtitle, the following definitions apply:
            ``(1) Commission.--The term `Commission' means a Commission
        established under section 15301.
            ``(2) Local development district.--The term `local development
        district' means an entity that--
                ``(A)(i) is an economic development district that is--
                    ``(I) in existence on the date of the enactment of this
                chapter; and
                    ``(II) located in the region; or
                ``(ii) if an entity described in clause (i) does not
            exist--
                    ``(I) is organized and operated in a manner that
                ensures broad-based community participation and an
                effective opportunity for local officials, community
                leaders, and the public to contribute to the development
                and implementation of programs in the region;
                    ``(II) is governed by a policy board with at least a
                simple majority of members consisting of--

                        ``(aa) elected officials; or
                        ``(bb) designees or employees of a general purpose
                    unit of local government that have been appointed to
                    represent the unit of local government; and

                    ``(III) is certified by the Governor or appropriate
                State officer as having a charter or authority that
                includes the economic development of counties, portions of
                counties, or other political subdivisions within the
                region; and
                ``(B) has not, as certified by the Federal Cochairperson--
                    ``(i) inappropriately used Federal grant funds from any
                Federal source; or
                    ``(ii) 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.
            ``(3) Federal grant program.--The term `Federal grant program'
        means a Federal grant program to provide assistance in carrying out
        economic and community development activities.
            ``(4) 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).
            ``(5) Nonprofit entity.--The term `nonprofit entity' means any
        organization described in section 501(c) of the Internal Revenue
        Code of 1986 and exempt from taxation under 501(a) of that Code
        that has been formed for the purpose of economic development.
            ``(6) Region.--The term `region' means the area covered by a
        Commission as described in subchapter II of chapter 157.

                       ``CHAPTER 2--REGIONAL COMMISSIONS

    ``Sec.
    ``15301. Establishment, membership, and employees.
    ``15302. Decisions.
    ``15303. Functions.
    ``15304. Administrative powers and expenses.
    ``15305. Meetings.
    ``15306. Personal financial interests.
    ``15307. Tribal participation.
    ``15308. Annual report.
    ``Sec. 15301. Establishment, membership, and employees
        ``(a) Establishment.--There are established the following regional
    Commissions:
            ``(1) The Southeast Crescent Regional Commission.
            ``(2) The Southwest Border Regional Commission.
            ``(3) The Northern Border Regional Commission.
        ``(b) Membership.--
            ``(1) Federal and state members.--Each Commission shall be
        composed of the following members:
                ``(A) A Federal Cochairperson, to be appointed by the
            President, by and with the advice and consent of the Senate.
                ``(B) The Governor of each participating State in the
            region of the Commission.
            ``(2) Alternate members.--
                ``(A) Alternate federal cochairperson.--The President shall
            appoint an alternate Federal Cochairperson for each Commission.
            The alternate Federal Cochairperson, when not actively serving
            as an alternate for the Federal Cochairperson, shall perform
            such functions and duties as are delegated by the Federal
            Cochairperson.
                ``(B) State alternates.--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 members
            of the Governor's cabinet or personal staff.
                ``(C) Voting.--An alternate member shall vote in the case
            of the absence, death, disability, removal, or resignation of
            the Federal or State member for which the alternate member is
            an alternate.
            ``(3) Cochairpersons.--A Commission shall be headed by--
                ``(A) the Federal Cochairperson, who shall serve as a
            liaison between the Federal Government and the Commission; and
                ``(B) a State Cochairperson, who shall be a Governor of a
            participating State in the region and shall be elected by the
            State members for a term of not less than 1 year.
            ``(4) Consecutive terms.--A State member may not be elected to
        serve as State Cochairperson for more than 2 consecutive terms.
        ``(c) Compensation.--
            ``(1) Federal cochairpersons.--Each Federal Cochairperson shall
        be compensated by the Federal Government at level III of the
        Executive Schedule as set out in section 5314 of title 5.
            ``(2) Alternate federal cochairpersons.--Each Federal
        Cochairperson's alternate shall be compensated by the Federal
        Government at level V of the Executive Schedule as set out in
        section 5316 of title 5.
            ``(3) State members and alternates.--Each State member and
        alternate shall be compensated by the State that they represent at
        the rate established by the laws of that State.
        ``(d) Executive Director and Staff.--
            ``(1) In general.--A Commission shall appoint and fix the
        compensation of an executive director and such other personnel as
        are necessary to enable the Commission to carry out its duties.
        Compensation under this paragraph may not exceed the maximum rate
        of basic pay established for the Senior Executive Service under
        section 5382 of title 5, including any applicable locality-based
        comparability payment that may be authorized under section
        5304(h)(2)(C) of that title.
            ``(2) Executive director.--The executive director shall be
        responsible for carrying out the administrative duties of the
        Commission, directing the Commission staff, and such other duties
        as the Commission may assign.
        ``(e) No Federal Employee Status.--No member, alternate, officer,
    or employee of a Commission (other than the Federal Cochairperson, the
    alternate Federal Cochairperson, staff of the Federal Cochairperson,
    and any Federal employee detailed to the Commission) shall be
    considered to be a Federal employee for any purpose.
    ``Sec. 15302. Decisions
        ``(a) Requirements for Approval.--Except as provided in section
    15304(c)(3), decisions by the Commission shall require the affirmative
    vote of the Federal Cochairperson and a majority of the State members
    (exclusive of members representing States delinquent under section
    15304(c)(3)(C)).
        ``(b) Consultation.--In matters coming before the Commission, the
    Federal Cochairperson shall, to the extent practicable, consult with
    the Federal departments and agencies having an interest in the subject
    matter.
        ``(c) Quorums.--A Commission shall determine what constitutes a
    quorum for Commission meetings; except that--
            ``(1) any quorum shall include the Federal Cochairperson or the
        alternate Federal Cochairperson; and
            ``(2) a State alternate member shall not be counted toward the
        establishment of a quorum.
        ``(d) Projects and Grant Proposals.--The approval of project and
    grant proposals shall be a responsibility of each Commission and shall
    be carried out in accordance with section 15503.
    ``Sec. 15303. Functions
        ``A Commission shall--
            ``(1) assess the needs and assets of its region based on
        available research, demonstration projects, investigations,
        assessments, and evaluations of the region prepared by Federal,
        State, and local agencies, universities, local development
        districts, and other nonprofit groups;
            ``(2) develop, on a continuing basis, comprehensive and
        coordinated economic and infrastructure development strategies to
        establish priorities and approve grants for the economic
        development of its region, giving due consideration to other
        Federal, State, and local planning and development activities in
        the region;
            ``(3) not later than one year after the date of the enactment
        of this section, and after taking into account State plans
        developed under section 15502, establish priorities in an economic
        and infrastructure development plan for its region, including 5-
        year regional outcome targets;
            ``(4)(A) enhance the capacity of, and provide support for,
        local development districts in its 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) encourage private investment in industrial, commercial,
        and other economic development projects in its region;
            ``(6) cooperate with and assist State governments with the
        preparation of economic and infrastructure development plans and
        programs for participating States;
            ``(7) formulate and recommend to the Governors and legislatures
        of States that participate in the Commission forms of interstate
        cooperation and, where appropriate, international cooperation; and
            ``(8) work with State and local agencies in developing
        appropriate model legislation to enhance local and regional
        economic development.
    ``Sec. 15304. Administrative powers and expenses
        ``(a) Powers.--In carrying out its duties under this subtitle, a
    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 agency such
        information as may be available to or procurable by the agency that
        may be of use to the Commission in carrying out the duties of the
        Commission;
            ``(4) adopt, amend, and repeal bylaws and rules governing the
        conduct of business and the performance of duties by the
        Commission;
            ``(5) request the head of any Federal agency, State agency, or
        local government to detail to the Commission such personnel as the
        Commission requires to carry out its duties, each such detail to be
        without loss of seniority, pay, or other employee status;
            ``(6) provide for coverage of Commission employees in a
        suitable retirement and employee benefit system by making
        arrangements or entering into contracts with any participating
        State government or otherwise providing retirement and other
        employee coverage;
            ``(7) accept, use, and dispose of gifts or donations or
        services or real, personal, tangible, or intangible property;
            ``(8) enter into and perform such contracts, cooperative
        agreements, or other transactions as are necessary to carry out
        Commission duties, including any contracts or cooperative
        agreements with a department, agency, or instrumentality of the
        United States, a State (including a political subdivision, agency,
        or instrumentality of the State), or a person, firm, association,
        or corporation; and
            ``(9) maintain a government relations office in the District of
        Columbia and establish and maintain a central office at such
        location in its region as the Commission may select.
        ``(b) Federal Agency Cooperation.--A Federal agency shall--
            ``(1) cooperate with a Commission; and
            ``(2) provide, to the extent practicable, on request of the
        Federal Cochairperson, appropriate assistance in carrying out this
        subtitle, in accordance with applicable Federal laws (including
        regulations).
        ``(c) Administrative Expenses.--
            ``(1) In general.--Subject to paragraph (2), the administrative
        expenses of a Commission shall be paid--
                ``(A) by the Federal Government, in an amount equal to 50
            percent of the administrative expenses of the Commission; and
                ``(B) by the States participating in the Commission, in an
            amount equal to 50 percent of the administrative expenses.
            ``(2) Expenses of the federal cochairperson.--All expenses of
        the Federal Cochairperson, including expenses of the alternate and
        staff of the Federal Cochairperson, shall be paid by the Federal
        Government.
            ``(3) State share.--
                ``(A) In general.--Subject to subparagraph (B), the share
            of administrative expenses of a Commission to be paid by each
            State of the Commission shall be determined by a unanimous vote
            of the State members of the Commission.
                ``(B) No federal participation.--The Federal Cochairperson
            shall not participate or vote in any decision under
            subparagraph (A).
                ``(C) Delinquent states.--During any period in which a
            State is more than 1 year 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
                provided to the State (including assistance to a political
                subdivision or a resident of the State) for any project not
                approved as of the date of the commencement of the
                delinquency; and
                    ``(ii) no member of the Commission from the State shall
                participate or vote in any action by the Commission.
            ``(4) Effect on assistance.--A State's share of administrative
        expenses of a Commission under this subsection shall not be taken
        into consideration when determining the amount of assistance
        provided to the State under this subtitle.
    ``Sec. 15305. Meetings
        ``(a) Initial Meeting.--Each Commission shall hold an initial
    meeting not later than 180 days after the date of the enactment of this
    section.
        ``(b) Annual Meeting.--Each Commission shall conduct at least 1
    meeting each year with the Federal Cochairperson and at least a
    majority of the State members present.
        ``(c) Additional Meetings.--Each Commission shall conduct
    additional meetings at such times as it determines and may conduct such
    meetings by electronic means.
    ``Sec. 15306. Personal financial interests
        ``(a) Conflicts of Interest.--
            ``(1) No role allowed.--Except as permitted by paragraph (2),
        an individual who is a State member or alternate, or an officer or
        employee of a Commission, shall not participate personally and
        substantially as a member, alternate, officer, or employee of the
        Commission, through decision, approval, disapproval,
        recommendation, request for a ruling, or other determination,
        contract, claim, controversy, or other matter in which, to the
        individual's knowledge, any of the following has a financial
        interest:
                ``(A) The individual.
                ``(B) The individual's spouse, minor child, or partner.
                ``(C) An organization (except a State or political
            subdivision of a State) in which the individual is serving as
            an officer, director, trustee, partner, or employee.
                ``(D) Any person or organization with whom the individual
            is negotiating or has any arrangement concerning prospective
            employment.
            ``(2) Exception.--Paragraph (1) shall not apply if the
        individual, in advance of the proceeding, application, request for
        a ruling or other determination, contract, claim controversy, or
        other particular matter presenting a potential conflict of
        interest--
                ``(A) advises the Commission of the nature and
            circumstances of the matter presenting the conflict of
            interest;
                ``(B) makes full disclosure of the financial interest; and
                ``(C) receives a written decision of the Commission that
            the interest is not so substantial as to be considered likely
            to affect the integrity of the services that the Commission may
            expect from the individual.
            ``(3) Violation.--An individual violating this subsection shall
        be fined under title 18, imprisoned for not more than 1 year, or
        both.
        ``(b) State Member or Alternate.--A State member or alternate
    member may not receive any salary, or any contribution to, or
    supplementation of, salary, for services on a Commission from a source
    other than the State of the member or alternate.
        ``(c) Detailed Employees.--
            ``(1) In general.--No person detailed to serve a Commission
        shall receive any salary, or any contribution to, or
        supplementation of, salary, for services provided to the Commission
        from any source other than the State, local, or intergovernmental
        department or agency from which the person was detailed to the
        Commission.
            ``(2) Violation.--Any person that violates this subsection
        shall be fined under title 18, imprisoned not more than 1 year, or
        both.
        ``(d) Federal Cochairman, Alternate to Federal Cochairman, and
    Federal Officers and Employees.--The Federal Cochairman, the alternate
    to the Federal Cochairman, and any Federal officer or employee detailed
    to duty with the Commission are not subject to this section but remain
    subject to sections 202 through 209 of title 18.
        ``(e) Rescission.--A 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 (a)(1), (b), or (c), or any of the provisions of
    sections 202 through 209 of title 18.
    ``Sec. 15307. Tribal participation
        ``Governments of Indian tribes in the region of the Southwest
    Border Regional Commission shall be allowed to participate in matters
    before that Commission in the same manner and to the same extent as
    State agencies and instrumentalities in the region.
    ``Sec. 15308. Annual report
        ``(a) In General.--Not later than 90 days after the last day of
    each fiscal year, each Commission shall submit to the President and
    Congress a report on the activities carried out by the Commission under
    this subtitle in the fiscal year.
        ``(b) Contents.--The report shall include--
            ``(1) a description of the criteria used by the Commission to
        designate counties under section 15702 and a list of the counties
        designated in each category;
            ``(2) an evaluation of the progress of the Commission in
        meeting the goals identified in the Commission's economic and
        infrastructure development plan under section 15303 and State
        economic and infrastructure development plans under section 15502;
        and
            ``(3) any policy recommendations approved by the Commission.

                       ``CHAPTER 3--FINANCIAL ASSISTANCE

    ``Sec.
    ``15501. Economic and infrastructure development grants.
    ``15502. Comprehensive economic and infrastructure development plans.
    ``15503. Approval of applications for assistance.
    ``15504. Program development criteria.
    ``15505. Local development districts and organizations.
    ``15506. Supplements to Federal grant programs.
    ``Sec. 15501. Economic and infrastructure development grants
        ``(a) In General.--A Commission may make grants to States and local
    governments, Indian tribes, and public and nonprofit organizations for
    projects, approved in accordance with section 15503--
            ``(1) to develop the transportation infrastructure of its
        region;
            ``(2) to develop the basic public infrastructure of its region;
            ``(3) to develop the telecommunications infrastructure of its
        region;
            ``(4) to assist its region in obtaining job skills training,
        skills development and employment-related education,
        entrepreneurship, technology, and business development;
            ``(5) to provide assistance to severely economically distressed
        and underdeveloped areas of its region that lack financial
        resources for improving basic health care and other public
        services;
            ``(6) to promote resource conservation, tourism, recreation,
        and preservation of open space in a manner consistent with economic
        development goals;
            ``(7) to promote the development of renewable and alternative
        energy sources; and
            ``(8) to otherwise achieve the purposes of this subtitle.
        ``(b) Allocation of Funds.--A Commission shall allocate at least 40
    percent of any grant amounts provided by the Commission in a fiscal
    year for projects described in paragraphs (1) through (3) of subsection
    (a).
        ``(c) Sources of Grants.--Grant amounts may be provided entirely
    from appropriations to carry out this subtitle, in combination with
    amounts available under other Federal grant programs, or from any other
    source.
        ``(d) Maximum Commission Contributions.--
            ``(1) In general.--Subject to paragraphs (2) and (3), the
        Commission may contribute not more than 50 percent of a project or
        activity cost eligible for financial assistance under this section
        from amounts appropriated to carry out this subtitle.
            ``(2) Distressed counties.--The maximum Commission contribution
        for a project or activity to be carried out in a county for which a
        distressed county designation is in effect under section 15702 may
        be increased to 80 percent.
            ``(3) Special rule for regional projects.--A Commission may
        increase to 60 percent under paragraph (1) and 90 percent under
        paragraph (2) the maximum Commission contribution for a project or
        activity if--
                ``(A) the project or activity involves 3 or more counties
            or more than one State; and
                ``(B) the Commission determines in accordance with section
            15302(a) that the project or activity will bring significant
            interstate or multicounty benefits to a region.
        ``(e) Maintenance of Effort.--Funds may be provided by a Commission
    for a program or project in a State under this section 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 region,
    will not be reduced as a result of funds made available by this
    subtitle.
        ``(f) No Relocation Assistance.--Financial assistance authorized by
    this section may not be used to assist a person or entity in relocating
    from one area to another.
    ``Sec. 15502. Comprehensive economic and infrastructure development
         plans
        ``(a) State Plans.--In accordance with policies established by a
    Commission, each State member of the Commission shall submit a
    comprehensive economic and infrastructure development plan for the area
    of the region represented by the State member.
        ``(b) Content of Plan.--A State economic and infrastructure
    development plan shall reflect the goals, objectives, and priorities
    identified in any applicable economic and infrastructure development
    plan developed by a Commission under section 15303.
        ``(c) Consultation With Interested Local Parties.--In carrying out
    the development planning process (including the selection of programs
    and projects for assistance), a State shall--
            ``(1) consult with local development districts, local units of
        government, and local colleges and universities; and
            ``(2) take into consideration the goals, objectives,
        priorities, and recommendations of the entities described in
        paragraph (1).
        ``(d) Public Participation.--
            ``(1) In general.--A 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.
            ``(2) Guidelines.--A Commission shall develop guidelines for
        providing public participation, including public hearings.
    ``Sec. 15503. Approval of applications for assistance
        ``(a) Evaluation by State Member.--An application to a Commission
    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.
        ``(b) Certification.--An application to a Commission for a grant or
    other assistance for a project under this subtitle shall be eligible
    for assistance only on certification by the State member of the
    Commission representing the applicant that the application for the
    project--
            ``(1) describes ways in which the project complies with any
        applicable State economic and infrastructure development plan;
            ``(2) meets applicable criteria under section 15504;
            ``(3) adequately ensures that the project will be properly
        administered, operated, and maintained; and
            ``(4) otherwise meets the requirements for assistance under
        this subtitle.
        ``(c) Votes for Decisions.--On certification by a State member of a
    Commission of an application for a grant or other assistance for a
    specific project under this section, an affirmative vote of the
    Commission under section 15302 shall be required for approval of the
    application.
    ``Sec. 15504. Program development criteria
        ``In considering programs and projects to be provided assistance by
    a Commission under this subtitle, and in establishing a priority
    ranking of the requests for assistance provided to the Commission, the
    Commission shall follow procedures that ensure, to the maximum extent
    practicable, consideration of--
            ``(1) the relationship of the project or class of projects to
        overall regional development;
            ``(2) the per capita income and poverty and unemployment and
        outmigration rates in an 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 or class of projects in
        relation to the other projects or classes of 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 to be served by the project;
        and
            ``(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.
    ``Sec. 15505. Local development districts and organizations
        ``(a) Grants to Local Development Districts.--Subject to the
    requirements of this section, a Commission may make grants to a local
    development district to assist in the payment of development planning
    and administrative expenses.
        ``(b) Conditions for Grants.--
            ``(1) Maximum amount.--The amount of a grant awarded under this
        section may not exceed 80 percent of the administrative and
        planning expenses of the local development district receiving the
        grant.
            ``(2) Maximum period for state agencies.--In the case of a
        State agency certified as a local development district, a grant may
        not be awarded to the agency under this section for more than 3
        fiscal years.
            ``(3) 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;
            ``(2) assist the Commission in carrying out outreach activities
        for local governments, community development groups, the business
        community, and the public;
            ``(3) serve as a liaison between State and local governments,
        nonprofit organizations (including community-based groups and
        educational institutions), the business community, and citizens;
        and
            ``(4) assist the individuals and entities described in
        paragraph (3) in identifying, assessing, and facilitating projects
        and programs to promote the economic development of the region.
    ``Sec. 15506. Supplements to Federal grant programs
        ``(a) Finding.--Congress finds that certain States and local
    communities of the region, including local development districts, may
    be unable to take maximum advantage of Federal grant programs for which
    the States and communities are eligible because--
            ``(1) they lack the economic resources to provide the required
        matching share; or
            ``(2) there are insufficient funds available under the
        applicable Federal law with respect to a project to be carried out
        in the region.
        ``(b) Federal Grant Program Funding.--A Commission, with the
    approval of the Federal Cochairperson, may use amounts made available
    to carry out this subtitle--
            ``(1) for any part of the basic Federal contribution to
        projects or activities under the Federal grant programs authorized
        by Federal laws; and
            ``(2) to increase the Federal contribution to projects and
        activities under the programs above the fixed maximum part of the
        cost of the projects or activities otherwise authorized by the
        applicable law.
        ``(c) Certification Required.--For a program, project, or activity
    for which any part of the basic Federal contribution to the project or
    activity under a Federal grant program is proposed to be made under
    subsection (b), the Federal contribution shall not be made until the
    responsible Federal official administering the Federal law authorizing
    the Federal contribution certifies that the program, project, or
    activity meets the applicable requirements of the Federal law and could
    be approved for Federal contribution under that law if amounts were
    available under the law for the program, project, or activity.
        ``(d) Limitations in Other Laws Inapplicable.--Amounts provided
    pursuant to this subtitle are available without regard to any
    limitations on areas eligible for assistance or authorizations for
    appropriation in any other law.
        ``(e) Federal Share.--The Federal share of the cost of a project or
    activity receiving assistance under this section shall not exceed 80
    percent.
        ``(f) Maximum Commission Contribution.--Section 15501(d), relating
    to limitations on Commission contributions, shall apply to a program,
    project, or activity receiving assistance under this section.

                     ``CHAPTER 4--ADMINISTRATIVE PROVISIONS

                        ``subchapter i--general provisions

    ``Sec. 15701. Consent of States.
    ``Sec. 15702. Distressed counties and areas.
    ``Sec. 15703. Counties eligible for assistance in more than one region.
    ``Sec. 15704. Inspector General; records.
    ``Sec. 15705. Biannual meetings of representatives of all Commissions.

                     ``subchapter ii--designation of regions

    ``Sec. 15731. Southeast Crescent Regional Commission.
    ``Sec. 15732. Southwest Border Regional Commission.
    ``Sec. 15733. Northern Border Regional Commission.

                ``subchapter iii--authorization of appropriations

    ``Sec. 15751. Authorization of appropriations.

                       ``SUBCHAPTER I--GENERAL PROVISIONS

    ``Sec. 15701. Consent of States
        ``This subtitle does not require a State to engage in or accept a
    program under this subtitle without its consent.
    ``Sec. 15702. Distressed counties and areas
        ``(a) Designations.--Not later than 90 days after the date of the
    enactment of this section, and annually thereafter, each Commission
    shall make the following designations:
            ``(1) Distressed counties.--The Commission shall designate as
        distressed counties those counties in its region that are the most
        severely and persistently economically distressed and
        underdeveloped and have high rates of poverty, unemployment, or
        outmigration.
            ``(2) Transitional counties.--The Commission shall designate as
        transitional counties those counties in its region that are
        economically distressed and underdeveloped or have recently
        suffered high rates of poverty, unemployment, or outmigration.
            ``(3) Attainment counties.--The Commission shall designate as
        attainment counties, those counties in its region that are not
        designated as distressed or transitional counties under this
        subsection.
            ``(4) Isolated areas of distress.--The Commission shall
        designate as isolated areas of distress, areas located in counties
        designated as attainment counties under paragraph (3) that have
        high rates of poverty, unemployment, or outmigration.
        ``(b) Allocation.--A Commission shall allocate at least 50 percent
    of the appropriations made available to the Commission to carry out
    this subtitle for programs and projects designed to serve the needs of
    distressed counties and isolated areas of distress in the region.
        ``(c) Attainment Counties.--
            ``(1) In general.--Except as provided in paragraph (2), funds
        may not be provided under this subtitle for a project located in a
        county designated as an attainment county under subsection (a).
            ``(2) Exceptions.--
                ``(A) Administrative expenses of local development
            districts.--The funding prohibition under paragraph (1) shall
            not apply to grants to fund the administrative expenses of
            local development districts under section 15505.
                ``(B) Multicounty and other projects.--A Commission may
            waive the application of the funding prohibition under
            paragraph (1) with respect to--
                    ``(i) a multicounty project that includes participation
                by an attainment county; and
                    ``(ii) any other type of project, if a Commission
                determines that the project could bring significant
                benefits to areas of the region outside an attainment
                county.
            ``(3) Isolated areas of distress.--For a designation of an
        isolated area of distress to be effective, the designation shall be
        supported--
                ``(A) by the most recent Federal data available; or
                ``(B) if no recent Federal data are available, by the most
            recent data available through the government of the State in
            which the isolated area of distress is located.
    ``Sec. 15703. Counties eligible for assistance in more than one region
        ``(a) Limitation.--A political subdivision of a State may not
    receive assistance under this subtitle in a fiscal year from more than
    one Commission.
        ``(b) Selection of Commission.--A political subdivision included in
    the region of more than one Commission shall select the Commission with
    which it will participate by notifying, in writing, the Federal
    Cochairperson and the appropriate State member of that Commission.
        ``(c) Changes in Selections.--The selection of a Commission by a
    political subdivision shall apply in the fiscal year in which the
    selection is made, and shall apply in each subsequent fiscal year
    unless the political subdivision, at least 90 days before the first day
    of the fiscal year, notifies the Cochairpersons of another Commission
    in writing that the political subdivision will participate in that
    Commission and also transmits a copy of such notification to the
    Cochairpersons of the Commission in which the political subdivision is
    currently participating.
        ``(d) Inclusion of Appalachian Regional Commission.--In this
    section, the term `Commission' includes the Appalachian Regional
    Commission established under chapter 143.
    ``Sec. 15704. Inspector General; records
        ``(a) Appointment of Inspector General.--There shall be an
    Inspector General for the Commissions appointed in accordance with
    section 3(a) of the Inspector General Act of 1978 (5 U.S.C. App.). All
    of the Commissions shall be subject to a single Inspector General.
        ``(b) Records of a Commission.--
            ``(1) In general.--A Commission shall maintain accurate and
        complete records of all its transactions and activities.
            ``(2) Availability.--All records of a Commission shall be
        available for audit and examination by the Inspector General
        (including authorized representatives of the Inspector General).
        ``(c) Records of Recipients of Commission Assistance.--
            ``(1) In general.--A recipient of funds from a Commission under
        this subtitle shall maintain accurate and complete records of
        transactions and activities financed with the funds and report to
        the Commission on the transactions and activities.
            ``(2) Availability.--All records required under paragraph (1)
        shall be available for audit by the Commission and the Inspector
        General (including authorized representatives of the Commission and
        the Inspector General).
        ``(d) Annual Audit.--The Inspector General shall audit the
    activities, transactions, and records of each Commission on an annual
    basis.
    ``Sec. 15705. Biannual meetings of representatives of all Commissions
        ``(a) In General.--Representatives of each Commission, the
    Appalachian Regional Commission, and the Denali Commission shall meet
    biannually to discuss issues confronting regions suffering from chronic
    and contiguous distress and successful strategies for promoting
    regional development.
        ``(b) Chair of Meetings.--The chair of each meeting shall rotate
    among the Commissions, with the Appalachian Regional Commission to host
    the first meeting.

                    ``SUBCHAPTER II--DESIGNATION OF REGIONS

    ``Sec. 15731. Southeast Crescent Regional Commission
        ``The region of the Southeast Crescent Regional Commission shall
    consist of all counties of the States of Virginia, North Carolina,
    South Carolina, Georgia, Alabama, Mississippi, and Florida not already
    served by the Appalachian Regional Commission or the Delta Regional
    Authority.
    ``Sec. 15732. Southwest Border Regional Commission
        ``The region of the Southwest Border Regional Commission shall
    consist of the following political subdivisions:
            ``(1) Arizona.--The counties of Cochise, Gila, Graham,
        Greenlee, La Paz, Maricopa, Pima, Pinal, Santa Cruz, and Yuma in
        the State of Arizona.
            ``(2) California.--The counties of Imperial, Los Angeles,
        Orange, Riverside, San Bernardino, San Diego, and Ventura in the
        State of California.
            ``(3) New mexico.--The counties of Catron, Chaves, Dona Ana,
        Eddy, Grant, Hidalgo, Lincoln, Luna, Otero, Sierra, and Socorro in
        the State of New Mexico.
            ``(4) Texas.--The counties of Atascosa, Bandera, Bee, Bexar,
        Brewster, Brooks, Cameron, Coke, Concho, Crane, Crockett,
        Culberson, Dimmit, Duval, Ector, Edwards, El Paso, Frio, Gillespie,
        Glasscock, Hidalgo, Hudspeth, Irion, Jeff Davis, Jim Hogg, Jim
        Wells, Karnes, Kendall, Kenedy, Kerr, Kimble, Kinney, Kleberg, La
        Salle, Live Oak, Loving, Mason, Maverick, McMullen, Medina, Menard,
        Midland, Nueces, Pecos, Presidio, Reagan, Real, Reeves, San
        Patricio, Shleicher, Sutton, Starr, Sterling, Terrell, Tom Green
        Upton, Uvalde, Val Verde, Ward, Webb, Willacy, Wilson, Winkler,
        Zapata, and Zavala in the State of Texas.
    ``Sec. 15733. Northern Border Regional Commission
        ``The region of the Northern Border Regional Commission shall
    include the following counties:
            ``(1) Maine.--The counties of Androscoggin, Aroostook,
        Franklin, Hancock, Kennebec, Knox, Oxford, Penobscot, Piscataquis,
        Somerset, Waldo, and Washington in the State of Maine.
            ``(2) New hampshire.--The counties of Carroll, Coos, Grafton,
        and Sullivan in the State of New Hampshire.
            ``(3) New york.--The counties of Cayuga, Clinton, Essex,
        Franklin, Fulton, Hamilton, Herkimer, Jefferson, Lewis, Madison,
        Oneida, Oswego, Seneca, and St. Lawrence in the State of New York.
            ``(4) Vermont.--The counties of Caledonia, Essex, Franklin,
        Grand Isle, Lamoille, and Orleans in the State of Vermont.

               ``SUBCHAPTER III--AUTHORIZATION OF APPROPRIATIONS

    ``Sec. 15751. Authorization of appropriations
        ``(a) In General.--There is authorized to be appropriated to each
    Commission to carry out this subtitle $30,000,000 for each of fiscal
    years 2008 through 2012.
        ``(b) Administrative Expenses.--Not more than 10 percent of the
    funds made available to a Commission in a fiscal year under this
    section may be used for administrative expenses.''.
        (b) Clerical Amendment to Table of Subtitles.--The table of
    subtitles for chapter 40, United States Code, is amended by striking
    the item relating to subtitle V and inserting the following:

    ``V. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT.............15101

    ``VI. MISCELLANEOUS.............................................17101''.

        (c) Conforming Amendments to Inspector General Act.--Section 11 of
    the Inspector General Act of 1978 (5 U.S.C. App.) is amended--
            (1) in paragraph (1), by striking ``or the President of the
        Export-Import Bank;'' and inserting ``the President of the Export-
        Import Bank; or the Federal Cochairpersons of the Commissions
        established under section 15301 of title 40, United States Code;'';
        and
            (2) in paragraph (2), by striking ``or the Export-Import
        Bank,'' and inserting ``the Export-Import Bank, or the Commissions
        established under section 15301 of title 40, United States Code,''.
        (d) Effective Date.--This section, and the amendments made by this
    section, shall take effect on the first day of the first fiscal year
    beginning after the date of the enactment of this Act.
    SEC. 14218. COORDINATOR FOR CHRONICALLY UNDERSERVED RURAL AREAS.
        (a) Establishment.--The Secretary of Agriculture shall establish a
    Coordinator for Chronically Underserved Rural Areas (in this section
    referred to as the ``Coordinator''), to be located in the Rural
    Development Mission Area.
        (b) Mission.--The mission of the Coordinator shall be to direct
    Department of Agriculture resources to high need, high poverty rural
    areas.
        (c) Duties.--The Coordinator shall consult with other offices in
    directing technical assistance, strategic regional planning, at the
    State and local level, for developing rural economic development that
    leverages the resources of State and local governments and non-profit
    and community development organizations.
        (d) Authorization of Appropriations.--There are authorized to be
    appropriated to the Secretary such sums as necessary to carry out this
    section for fiscal years 2008 through 2012.
    SEC. 14219. ELIMINATION OF STATUTE OF LIMITATIONS APPLICABLE TO
    COLLECTION OF DEBT BY ADMINISTRATIVE OFFSET.
        (a) Elimination.--Section 3716(e) of title 31, United States Code,
    is amended to read as follows:
        ``(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. 14220. AVAILABILITY OF EXCESS AND SURPLUS COMPUTERS IN RURAL
    AREAS.
        In addition to any other authority, the Secretary of Agriculture
    may make available to an organization excess or surplus computers or
    other technical equipment of the Department of Agriculture for the
    purposes of distribution to a city, town, or local government entity in
    a rural area (as defined in section 343(a)(13)(A) of the Consolidated
    Farm and Rural Development Act).
    SEC. 14221. REPEAL OF SECTION 3068 OF THE WATER RESOURCES DEVELOPMENT
    ACT OF 2007.
        Effective upon the date of enactment of this Act, section 3068 of
    the Water Resources Development Act of 2007 (Public Law 110-114; 121
    Stat. 1123), and the item relating to section 3068 in the table of
    contents of that Act, are repealed.
    SEC. 14222. DOMESTIC FOOD ASSISTANCE PROGRAMS.
        (a) Definition of Section 32.--In this section, the term ``section
    32'' means section 32 of the Act of August 24, 1935 (7 U.S.C. 612c).
        (b) Transfer to Food and Nutrition Service.--
            (1) In general.--Amounts made available for a fiscal year to
        carry out section 32 in excess of the maximum amount calculated
        under paragraph (2) shall be transferred to the Secretary, acting
        through the Administrator of the Food and Nutrition Service, to be
        used to carry out the Richard B. Russell National School Lunch Act
        (42 U.S.C. 1751 et seq.).
            (2) Maximum amount.--The maximum amount calculated under this
        paragraph for a fiscal year is the sum of--
                (A)(i) in the case of fiscal year 2009, $1,173,000,000;
                (ii) in the case of fiscal year 2010, $1,199,000,000;
                (iii) in the case of fiscal year 2011, $1,215,000,000;
                (iv) in the case of fiscal year 2012, $1,231,000,000;
                (v) in the case of fiscal year 2013, $1,248,000,000;
                (vi) in the case of fiscal year 2014, $1,266,000,000;
                (vii) in the case of fiscal year 2015, $1,284,000,000;
                (viii) in the case of fiscal year 2016, $1,303,000,000;
                (ix) in the case of fiscal year 2017, $1,322,000,000; and
                (x) for fiscal year 2018 and each fiscal year thereafter,
            the amount made available for the preceding fiscal year, as
            adjusted to reflect changes for the 12-month period ending on
            the preceding November 30 in the Consumer Price Index for All
            Urban Consumers published by the Bureau of Labor Statistics of
            the Department of Labor; and
            (B) any transfers for the fiscal year from section 32 to the
        Department of Commerce under the Fish and Wildlife Act of 1956 (16
        U.S.C. 742a et seq.).
        (c) Fresh Fruit and Vegetable Program.--Of amounts made available
    to carry out section 32 under subsection (b)(2)(A), the Secretary shall
    transfer for use to carry out the fresh fruit and vegetable program
    under section 19 of the Richard B. Russell National School Lunch Act
    the amounts specified in subsection (i) of that section.
        (d) Whole Grain Products.--Of amounts made available to carry out
    section 32 under subsection (b)(2)(A), the Secretary shall use to carry
    out section 4305 $4,000,000 for fiscal year 2009.
        (e) Maintenance of Funding.--The funding provided under subsections
    (c) and (d) shall supplement (and not supplant) other Federal funding
    (including section 32 funding) for programs carried out under--
            (1) the Richard B. Russell National School Lunch Act (42 U.S.C.
        1751 et seq.), except for section 19 of that Act;
            (2) the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 et
        seq.); and
            (3) section 27 of the Food Stamp Act of 1977 (7 U.S.C. 2036).
    SEC. 14223. TECHNICAL CORRECTION.
        Section 923(1)(B) of the Federal Agriculture Improvement and Reform
    Act of 1996 (7 U.S.C. 2206a(1)(B)) is amended by striking ``as defined
    in section 316(b) of the Higher Education Act of 1965 (20 U.S.C.
    1059c(b))'' and inserting ``as defined in section 502(a)(5) of the
    Higher Education Act of 1965 (20 U.S.C. 1101a(a)(5))''.

                       TITLE XV--TRADE AND TAX PROVISIONS

    SEC. 15001. SHORT TITLE; ETC.
        (a) Short Title.--This title may be cited as the ``Heartland,
    Habitat, Harvest, and Horticulture Act of 2008''.
        (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
                    Agricultural Disaster Relief Trust Fund

    SEC. 15101. SUPPLEMENTAL AGRICULTURAL 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 AGRICULTURAL DISASTER ASSISTANCE

        ``SEC. 901. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.
        ``(a) Definitions.--In this section:
            ``(1) Actual production history yield.--The term `actual
        production history yield' means the weighted average of the 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) Adjusted actual production history yield.--The term
        `adjusted actual production history yield' means--
                ``(A) in the case of an eligible producer on a farm that
            has at least 4 years of actual production history yields for an
            insurable commodity that are established other than pursuant to
            section 508(g)(4)(B) of the Federal Crop Insurance Act (7
            U.S.C. 1508(g)(4)(B)), the actual production history for the
            eligible producer without regard to any yields established
            under that section;
                ``(B) in the case of an eligible producer on a farm that
            has less than 4 years of actual production history yields for
            an insurable commodity, of which 1 or more were established
            pursuant to section 508(g)(4)(B) of that Act, the actual
            production history for the eligible producer as calculated
            without including the lowest of the yields established pursuant
            to section 508(g)(4)(B) of that Act; and
                ``(C) in all other cases, the actual production history of
            the eligible producer on a farm.
            ``(3) Adjusted noninsured crop disaster assistance program
        yield.--The term `adjusted noninsured crop disaster assistance
        program yield' means--
                ``(A) in the case of an eligible producer on a farm that
            has at least 4 years of production history under the noninsured
            crop disaster assistance program that are not replacement
            yields, the noninsured crop disaster assistance program yield
            without regard to any replacement yields;
                ``(B) in the case of an eligible producer on a farm that
            less than 4 years of production history under the noninsured
            crop disaster assistance program that are not replacement
            yields, the noninsured crop disaster assistance program yield
            as calculated without including the lowest of the replacement
            yields; and
                ``(C) in all other cases, the production history of the
            eligible producer on the farm under the noninsured crop
            disaster assistance program.
            ``(4) 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), section 1102 of
        the Food, Conservation, and Energy Act of 2008, or a successor
        section.
            ``(5) 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.
            ``(6) 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.
            ``(7) 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 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.
            ``(8) Farm-raised fish.--The term `farm-raised fish' means any
        aquatic species that is propagated and reared in a controlled
        environment.
            ``(9) 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.).
            ``(10) 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.
            ``(11) 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.
            ``(12) 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).
            ``(13) 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)).
            ``(14) Secretary.--The term `Secretary' means the Secretary of
        Agriculture.
            ``(15) Socially disadvantaged farmer or rancher.--The term
        `socially disadvantaged farmer or rancher' has the meaning given
        the term in section 2501(e) of the Food, Agriculture, Conservation,
        and Trade Act of 1990 (7 U.S.C. 2279(e)).
            ``(16) 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.
            ``(17) Trust fund.--The term `Trust Fund' means the
        Agricultural Disaster Relief Trust Fund established under section
        902.
            ``(18) 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 60 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, 115
                percent of the product obtained by multiplying--

                        ``(I) a payment rate for the commodity that is
                    equal to the price election for the commodity elected
                    by the eligible producer;
                        ``(II) the payment acres for the commodity that is
                    equal to the number of acres planted, or prevented from
                    being planted, to the commodity;
                        ``(III) the payment yield for the commodity that is
                    equal to the percentage of the crop insurance yield
                    elected by the producer of the higher of--

                            ``(aa) the adjusted actual production history
                        yield; or
                            ``(bb) the counter-cyclical program payment
                        yield for each crop; and
                    ``(ii) for each noninsurable commodity on a farm, 120
                percent of the product obtained by multiplying--

                        ``(I) a payment rate for the commodity that is
                    equal to 100 percent of the noninsured crop assistance
                    program established price for the commodity;
                        ``(II) the payment acres for the commodity that is
                    equal to the number of acres planted, or prevented from
                    being planted, to the commodity; and
                        ``(III) the payment yield for the commodity that is
                    equal to the higher of--

                            ``(aa) the adjusted noninsured crop assistance
                        program yield guarantee; or
                            ``(bb) the counter-cyclical program payment
                        yield for each crop.
                ``(B) 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.
                ``(C) 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
            unharvested crops, the adjusted assistance level shall be the
            basis for determining the disaster assistance program guarantee
            for the noninsurable commodity.
                ``(D) 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.
            ``(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 each crop produced
                on a farm by using the product obtained by multiplying--

                        ``(I) the actual crop acreage harvested by an
                    eligible producer on a farm;
                        ``(II) the estimated actual yield of the crop
                    production; and
                        ``(III) subject to subparagraphs (B) and (C), to
                    the extent practicable, the national average market
                    price received for the marketing year, as determined by
                    the Secretary;

                    ``(ii) 15 percent of amount of any direct payments made
                to the producer under sections 1103 and 1303 of the Food,
                Conservation, and Energy Act of 2008 or successor sections;
                    ``(iii) the total amount of any counter-cyclical
                payments made to the producer under sections 1104 and 1304
                of the Food, Conservation, and Energy Act of 2008 or
                successor sections or of any average crop revenue election
                payments made to the producer under section 1105 of that
                Act;
                    ``(iv) the total amount of any loan deficiency
                payments, marketing loan gains, and marketing certificate
                gains made to the producer under subtitles B and C of the
                Food, Conservation, and Energy Act of 2008 or successor
                subtitles;
                    ``(v) the amount of payments for prevented planting on
                a farm;
                    ``(vi) the amount of crop insurance indemnities
                received by an eligible producer on a farm for each crop on
                a farm;
                    ``(vii) the amount of payments an eligible producer on
                a farm received under the noninsured crop assistance
                program for each crop on a farm; and
                    ``(viii) 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 or
                mechanically harvested 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
            national average market price received during the marketing
            year 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 product obtained by multiplying--
                    ``(i) the greatest of--

                        ``(I) the adjusted actual production history yield
                    of the eligible producer on a farm; and
                        ``(II) the counter-cyclical program payment yield;

                    ``(ii) the acreage planted or prevented from being
                planted for each crop; and
                    ``(iii) 100 percent of the insurance price guarantee;
                and
                ``(B) the product obtained by multiplying--
                    ``(i) 100 percent of the adjusted 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) Payments.--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) Livestock Forage Disaster Program.--
            ``(1) Definitions.--In this subsection:
                ``(A) Covered livestock.--
                    ``(i) In general.--The term `covered livestock' means
                livestock of an eligible livestock producer that, during
                the 60 days prior to the beginning date of a qualifying
                drought or fire condition, as determined by the Secretary,
                the eligible livestock producer--

                        ``(I) owned;
                        ``(II) leased;
                        ``(III) purchased;
                        ``(IV) entered into a contract to purchase;
                        ``(V) is a contract grower; or
                        ``(VI) sold or otherwise disposed of due to
                    qualifying drought conditions during--

                            ``(aa) the current production year; or
                            ``(bb) subject to paragraph (3)(B)(ii), 1 or
                        both of the 2 production years immediately
                        preceding the current production year.
                    ``(ii) Exclusion.--The term `covered livestock' does
                not include livestock that were or would have been in a
                feedlot, on the beginning date of the qualifying drought or
                fire condition, as a part of the normal business operation
                of the eligible livestock producer, as determined by the
                Secretary.
                ``(B) Drought monitor.--The term `drought monitor' means a
            system for classifying drought severity according to a range of
            abnormally dry to exceptional drought, as defined by the
            Secretary.
                ``(C) Eligible livestock producer.--
                    ``(i) In general.--The term `eligible livestock
                producer' means an eligible producer on a farm that--

                        ``(I) is an owner, cash or share lessee, or
                    contract grower of covered livestock that provides the
                    pastureland or grazing land, including cash-leased
                    pastureland or grazing land, for the livestock;
                        ``(II) provides the pastureland or grazing land for
                    covered livestock, including cash-leased pastureland or
                    grazing land that is physically located in a county
                    affected by drought;
                        ``(III) certifies grazing loss; and
                        ``(IV) meets all other eligibility requirements
                    established under this subsection.

                    ``(ii) Exclusion.--The term `eligible livestock
                producer' does not include an owner, cash or share lessee,
                or contract grower of livestock that rents or leases
                pastureland or grazing land owned by another person on a
                rate-of-gain basis.
                ``(D) Normal carrying capacity.--The term `normal carrying
            capacity', with respect to each type of grazing land or
            pastureland in a county, means the normal carrying capacity, as
            determined under paragraph (3)(D)(i), that would be expected
            from the grazing land or pastureland for livestock during the
            normal grazing period, in the absence of a drought or fire that
            diminishes the production of the grazing land or pastureland.
                ``(E) Normal grazing period.--The term `normal grazing
            period', with respect to a county, means the normal grazing
            period during the calendar year for the county, as determined
            under paragraph (3)(D)(i).
            ``(2) Program.--The Secretary shall use such sums as are
        necessary from the Trust Fund to provide compensation for losses to
        eligible livestock producers due to grazing losses for covered
        livestock due to--
                ``(A) a drought condition, as described in paragraph (3);
            or
                ``(B) fire, as described in paragraph (4).
            ``(3) Assistance for losses due to drought conditions.--
                ``(A) Eligible losses.--
                    ``(i) In general.--An eligible livestock producer may
                receive assistance under this subsection only for grazing
                losses for covered livestock that occur on land that--

                        ``(I) is native or improved pastureland with
                    permanent vegetative cover; or
                        ``(II) is planted to a crop planted specifically
                    for the purpose of providing grazing for covered
                    livestock.

                    ``(ii) Exclusions.--An eligible livestock producer may
                not receive assistance under this subsection for grazing
                losses that occur on land used for haying or grazing under
                the conservation reserve program established under
                subchapter B of chapter 1 of subtitle D of title XII of the
                Food Security Act of 1985 (16 U.S.C. 3831 et seq.).
                ``(B) Monthly payment rate.--
                    ``(i) In general.--Except as provided in clause (ii),
                the payment rate for assistance under this paragraph for 1
                month shall, in the case of drought, be equal to 60 percent
                of the lesser of--

                        ``(I) the monthly feed cost for all covered
                    livestock owned or leased by the eligible livestock
                    producer, as determined under subparagraph (C); or
                        ``(II) the monthly feed cost calculated by using
                    the normal carrying capacity of the eligible grazing
                    land of the eligible livestock producer.

                    ``(ii) Partial compensation.--In the case of an
                eligible livestock producer that sold or otherwise disposed
                of covered livestock due to drought conditions in 1 or both
                of the 2 production years immediately preceding the current
                production year, as determined by the Secretary, the
                payment rate shall be 80 percent of the payment rate
                otherwise calculated in accordance with clause (i).
                ``(C) Monthly feed cost.--
                    ``(i) In general.--The monthly feed cost shall equal
                the product obtained by multiplying--

                        ``(I) 30 days;
                        ``(II) a payment quantity that is equal to the feed
                    grain equivalent, as determined under clause (ii); and
                        ``(III) a payment rate that is equal to the corn
                    price per pound, as determined under clause (iii).

                    ``(ii) Feed grain equivalent.--For purposes of clause
                (i)(I), the feed grain equivalent shall equal--

                        ``(I) in the case of an adult beef cow, 15.7 pounds
                    of corn per day; or
                        ``(II) in the case of any other type of weight of
                    livestock, an amount determined by the Secretary that
                    represents the average number of pounds of corn per day
                    necessary to feed the livestock.

                    ``(iii) Corn price per pound.--For purposes of clause
                (i)(II), the corn price per pound shall equal the quotient
                obtained by dividing--

                        ``(I) the higher of--

                            ``(aa) the national average corn price per
                        bushel for the 12-month period immediately
                        preceding March 1 of the year for which the
                        disaster assistance is calculated; or
                            ``(bb) the national average corn price per
                        bushel for the 24-month period immediately
                        preceding that March 1; by

                        ``(II) 56.

                ``(D) Normal grazing period and drought monitor
            intensity.--
                    ``(i) FSA county committee determinations.--

                        ``(I) In general.--The Secretary shall determine
                    the normal carrying capacity and normal grazing period
                    for each type of grazing land or pastureland in the
                    county served by the applicable committee.
                        ``(II) Changes.--No change to the normal carrying
                    capacity or normal grazing period established for a
                    county under subclause (I) shall be made unless the
                    change is requested by the appropriate State and county
                    Farm Service Agency committees.

                    ``(ii) Drought intensity.--

                        ``(I) D2.--An eligible livestock producer that owns
                    or leases grazing land or pastureland that is
                    physically located in a county that is rated by the
                    U.S. Drought Monitor as having a D2 (severe drought)
                    intensity in any area of the county for at least 8
                    consecutive weeks during the normal grazing period for
                    the county, as determined by the Secretary, shall be
                    eligible to receive assistance under this paragraph in
                    an amount equal to 1 monthly payment using the monthly
                    payment rate determined under subparagraph (B).
                        ``(II) D3.--An eligible livestock producer that
                    owns or leases grazing land or pastureland that is
                    physically located in a county that is rated by the
                    U.S. Drought Monitor as having at least a D3 (extreme
                    drought) intensity in any area of the county at any
                    time during the normal grazing period for the county,
                    as determined by the Secretary, shall be eligible to
                    receive assistance under this paragraph--

                            ``(aa) in an amount equal to 2 monthly payments
                        using the monthly payment rate determined under
                        subparagraph (B); or
                            ``(bb) if the county is rated as having a D3
                        (extreme drought) intensity in any area of the
                        county for at least 4 weeks during the normal
                        grazing period for the county, or is rated as
                        having a D4 (exceptional drought) intensity in any
                        area of the county at any time during the normal
                        grazing period, in an amount equal to 3 monthly
                        payments using the monthly payment rate determined
                        under subparagraph (B).
            ``(4) Assistance for losses due to fire on public managed
        land.--
                ``(A) In general.--An eligible livestock producer may
            receive assistance under this paragraph only if--
                    ``(i) the grazing losses occur on rangeland that is
                managed by a Federal agency; and
                    ``(ii) the eligible livestock producer is prohibited by
                the Federal agency from grazing the normal permitted
                livestock on the managed rangeland due to a fire.
                ``(B) Payment rate.--The payment rate for assistance under
            this paragraph shall be equal to 50 percent of the monthly feed
            cost for the total number of livestock covered by the Federal
            lease of the eligible livestock producer, as determined under
            paragraph (3)(C).
                ``(C) Payment duration.--
                    ``(i) In general.--Subject to clause (ii), an eligible
                livestock producer shall be eligible to receive assistance
                under this paragraph for the period--

                        ``(I) beginning on the date on which the Federal
                    agency excludes the eligible livestock producer from
                    using the managed rangeland for grazing; and
                        ``(II) ending on the last day of the Federal lease
                    of the eligible livestock producer.

                    ``(ii) Limitation.--An eligible livestock producer may
                only receive assistance under this paragraph for losses
                that occur on not more than 180 days per year.
            ``(5) Minimum risk management purchase requirements.--
                ``(A) In general.--Except as otherwise provided in this
            paragraph, a livestock producer shall only be eligible for
            assistance under this subsection if the livestock producer--
                    ``(i) obtained a policy or plan of insurance under the
                Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) for the
                grazing land incurring the losses for which assistance is
                being requested; or
                    ``(ii) filed the required paperwork, and paid the
                administrative fee by the applicable State filing deadline,
                for the noninsured crop assistance program for the grazing
                land incurring the losses for which assistance is being
                requested.
                ``(B) Waiver for socially disadvantaged, limited resource,
            or beginning farmer or rancher.--In the case of an eligible
            livestock producer that is a socially disadvantaged farmer or
            rancher or limited resource or beginning farmer or rancher, as
            determined by the Secretary, the Secretary may--
                    ``(i) waive subparagraph (A); and
                    ``(ii) provide disaster assistance under this section
                at a level that the Secretary determines to be equitable
                and appropriate.
                ``(C) Waiver for 2008 calendar year.--In the case of an
            eligible livestock producer that suffered losses on grazing
            land during the 2008 calendar year but does not meet the
            requirements of subparagraph (A), the Secretary shall waive
            subparagraph (A) if the eligible livestock producer pays a fee
            in an amount equal to the applicable noninsured crop assistance
            program fee or catastrophic risk protection plan fee required
            under subparagraph (A) to the Secretary not later than 90 days
            after the date of enactment of this subtitle.
                ``(D) Equitable relief.--
                    ``(i) In general.--The Secretary may provide equitable
                relief to an eligible livestock producer that is otherwise
                ineligible or unintentionally fails to meet the
                requirements of subparagraph (A) for the grazing land
                incurring the loss on a case-by-case basis, as determined
                by the Secretary.
                    ``(ii) 2008 calendar year.--In the case of an eligible
                livestock producer that suffered losses on grazing land
                during the 2008 calendar year, the Secretary shall take
                special consideration to provide equitable relief in cases
                in which the eligible livestock producer failed to meet the
                requirements of subparagraph (A) due to the enactment of
                this title after the closing date of sales periods for crop
                insurance under the Federal Crop Insurance Act (7 U.S.C.
                1501 et seq.) and the noninsured crop assistance program.
            ``(6) No duplicative payments.--
                ``(A) In general.--An eligible livestock producer may elect
            to receive assistance for grazing or pasture feed losses due to
            drought conditions under paragraph (3) or fire under paragraph
            (4), but not both for the same loss, as determined by the
            Secretary.
                ``(B) Relationship to supplemental revenue assistance.--An
            eligible livestock producer that receives assistance under this
            subsection may not also receive assistance for losses to crops
            on the same land with the same intended use under subsection
            (b).
        ``(e) Emergency Assistance for Livestock, Honey Bees, and Farm-
    Raised Fish.--
            ``(1) In general.--The Secretary shall use up to $50,000,000
        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 disease, adverse weather,
        or other conditions, such as blizzards and wildfires, as determined
        by the Secretary, that are not covered under subsection (b), (c),
        or (d).
            ``(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 shall remain available until expended.
        ``(f) 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--
                    ``(i) 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; and
                    ``(ii) under paragraph (3)(B) to eligible orchardists
                and nursery tree growers that have a production history for
                commercial purposes on planted or existing trees 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 70 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) Definitions of legal entity and person.--In this
            paragraph, the terms `legal entity' and `person' have the
            meaning given those terms in section 1001(a) of the Food
            Security Act of 1985 (7 U.S.C. 1308(a) (as amended by section
            1603 of the Food, Conservation, and Energy Act of 2008).
                ``(B) Amount.--The total amount of payments received,
            directly or indirectly, by a person or legal entity (excluding
            a joint venture or general partnership) under this subsection
            may not exceed $100,000 for any crop year, or an equivalent
            value in tree seedlings.
                ``(C) Acres.--The total quantity of acres planted to trees
            or tree seedlings for which a person or legal entity shall be
            entitled to receive payments under this subsection may not
            exceed 500 acres.
        ``(g) Risk Management Purchase Requirement.--
            ``(1) In general.--Except as otherwise provided in this
        section, the eligible producers on a farm shall not be eligible for
        assistance under this section (other than subsection (c)) if the
        eligible producers on the farm--
                ``(A) in the case of each insurable commodity of the
            eligible producers on the farm, did not obtain a policy or plan
            of insurance under the Federal Crop Insurance Act (7 U.S.C.
            1501 et seq.) (excluding a crop insurance pilot program under
            that Act); or
                ``(B) in the case of each noninsurable commodity of the
            eligible producers on the farm, did not file the required
            paperwork, and pay the administrative fee by the applicable
            State filing deadline, for the noninsured crop assistance
            program.
            ``(2) Minimum.--To be considered to have obtained insurance
        under paragraph (1)(A), 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 for socially disadvantaged, limited resource, or
        beginning farmer or rancher.--With respect to eligible producers
        that are socially disadvantaged farmers or ranchers or limited
        resource 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) Waiver for 2008 crop year.--In the case of an eligible
        producer that suffered losses in an insurable commodity or
        noninsurable commodity during the 2008 crop year but does not meet
        the requirements of paragraph (1), the Secretary shall waive
        paragraph (1) if the eligible producer pays a fee in an amount
        equal to the applicable noninsured crop assistance program fee or
        catastrophic risk protection plan fee required under paragraph (1)
        to the Secretary not later than 90 days after the date of enactment
        of this subtitle.
            ``(5) Equitable relief.--
                ``(A) In general.--The Secretary may provide equitable
            relief to eligible producers on a farm that are otherwise
            ineligible or 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.
                ``(B) 2008 crop year.--In the case of eligible producers on
            a farm that suffered losses in an insurable commodity or
            noninsurable commodity during the 2008 crop year, the Secretary
            shall take special consideration to provide equitable relief in
            cases in which the eligible producers failed to meet the
            requirements of paragraph (1) due to the enactment of this
            title after the closing date of sales periods for crop
            insurance under the Federal Crop Insurance Act (7 U.S.C. 1501
            et seq.) and the noninsured crop assistance program.
        ``(h) Payment Limitations.--
            ``(1) Definitions of legal entity and person.--In this
        subsection, the terms `legal entity' and `person' have the meaning
        given those terms in section 1001(a) of the Food Security Act of
        1985 (7 U.S.C. 1308(a) (as amended by section 1603 of the Food,
        Conservation, and Energy Act of 2008).
            ``(2) Amount.--The total amount of disaster assistance payments
        received, directly or indirectly, by a person or legal entity
        (excluding a joint venture or general partnership) under this
        section (excluding payments received under subsection (f)) may not
        exceed $100,000 for any crop year.
            ``(3) 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.
            ``(4) Direct attribution.--Subsections (e) and (f) of section
        1001 of the Food Security Act of 1985 (7 U.S.C. 1308) or any
        successor provisions relating to direct attribution shall apply
        with respect to assistance provided under this section.
        ``(i) 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, 2011, as determined by the Secretary.
        ``(j) No Duplicative Payments.--In implementing any other program
    which makes disaster assistance payments (except for indemnities made
    under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.)) 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), (e), or (f).
        ``SEC. 902. AGRICULTURAL 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 `Agricultural
    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 Agricultural
        Disaster Relief Trust Fund amounts equivalent to 3.08 percent of
        the amounts received in the general fund of the Treasury of the
        United States during fiscal years 2008 through 2011 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
        Agricultural 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.
            ``(3) Limitation on transfers to agricultural disaster relief
        trust fund.--No amount may be appropriated to the Agricultural
        Disaster Relief Trust Fund on and after the date of any expenditure
        from the Agricultural Disaster Relief Trust Fund which is not
        permitted by this section. The determination of whether an
        expenditure is so permitted shall be made without regard to--
                ``(A) any provision of law which is not contained or
            referenced in this title or in a revenue Act, and
                ``(B) whether such provision of law is a subsequently
            enacted provision or directly or indirectly seeks to waive the
            application of this paragraph.
        ``(c) Administration.--
            ``(1) Reports.--The Secretary of the Treasury shall be the
        trustee of the Agricultural 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 4 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 Agricultural 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
            Agricultural 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 Agricultural Disaster Relief Trust Fund shall be
            credited to and form a part of such Trust Fund.
        ``(d) Expenditures From Trust Fund.--Amounts in the Agricultural
    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 or section 531 of the Federal Crop Insurance
    Act (as such sections are in effect on the date of the enactment of the
    Food, Conservation, and Energy Act of 2008).
        ``(e) Authority To Borrow.--
            ``(1) In general.--There are authorized to be appropriated, and
        are appropriated, to the Agricultural 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 Agricultural
            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.
        ``SEC. 903. JURISDICTION.
        ``Legislation in the Senate of the United States amending section
    901 or 902 shall be referred to the Committee on Finance of the
    Senate.''.
        (b) Transition.--For purposes of the 2008 crop year, the Secretary
    shall carry out subsections (f)(4) and (h) of section 901 of the Trade
    Act of 1974 (as added by subsection (a)) in accordance with the terms
    and conditions of sections 1001 through 1001D of the Food Security Act
    of 1985 (16 U.S.C. 1308 et seq.), as in effect on September 30, 2007.
        (c) Clerical Amendment.--The table of contents for the Trade Act of
    1974 (19 U.S.C. 2101 et seq.) is amended by adding at the end the
    following:

            ``TITLE IX--SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE

    ``Sec. 901. Supplemental agricultural disaster assistance.
    ``Sec. 902. Agricultural Disaster Relief Trust Fund.
    ``Sec. 903. Jurisdiction.''.

            Subtitle B--Revenue Provisions for Agriculture Programs

    SEC. 15201. CUSTOMS USER FEES.
        (a) In General.--Section 13031(j)(3)(A) of the Consolidated Omnibus
    Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(A)) is amended
    by striking ``December 27, 2014'' and inserting ``November 14, 2017''.
        (b) Other Fees.--Section 13031(j)(3)(B)(i) of the Consolidated
    Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)(B)(i))
    is amended by striking ``December 27, 2014'' and inserting ``September
    30, 2017''.
        (c) Time for Remitting Certain Cobra Fees.--Notwithstanding any
    other provision of law, any fees authorized under paragraphs (1)
    through (8) of section 13031(a) of the Consolidated Omnibus Budget
    Reconciliation Act of 1985 (19 U.S.C. 58c(a) (1) through (8)) with
    respect to customs services provided on or after July 1, 2017, and
    before September 20, 2017, shall be paid not later than September 25,
    2017.
        (d) Time for Remitting Certain Merchandise Processing Fees.--
            (1) In general.--Notwithstanding any other provision of law,
        any fees authorized under paragraphs (9) and (10) of section
        13031(a) of the Consolidated Omnibus Budget Reconciliation Act of
        1985 (19 U.S.C. 58c(a) (9) and (10)) with respect to processing
        merchandise entered on or after October 1, 2017, and before
        November 15, 2017, shall be paid not later than September 25, 2017,
        in an amount equivalent to the amount of such fees paid by the
        person responsible for such fees with respect to merchandise
        entered on or after October 1, 2016, and before November 15, 2016,
        as determined by the Secretary of the Treasury.
            (2) Reconciliation of merchandise processing fees.--Not later
        than December 15, 2017, the Secretary of the Treasury shall
        reconcile the fees paid pursuant to paragraph (1) with the fees for
        services actually provided on or after October 1, 2017, and before
        November 15, 2017, and shall refund with interest any overpayment
        of such fees and make proper adjustments with respect to any
        underpayment of such fees. No interest may be assessed with respect
        to any such underpayment that was based on the amount of fees paid
        for merchandise entered on or after October 1, 2016, and before
        November 15, 2016.
    SEC. 15202. 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 7.75 percentage
    points.

                           Subtitle C--Tax Provisions

                              PART I--CONSERVATION

              Subpart A--Land and Species Preservation Provisions

    SEC. 15301. EXCLUSION OF CONSERVATION RESERVE PROGRAM PAYMENTS FROM
    SECA TAX FOR CERTAIN INDIVIDUALS.
        (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 after December 31, 2007.
    SEC. 15302. TWO-YEAR EXTENSION OF SPECIAL RULE ENCOURAGING
    CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY FOR CONSERVATION PURPOSES.
        (a) In General.--
            (1) Individuals.--Section 170(b)(1)(E)(vi) (relating to
        termination) is amended by striking ``December 31, 2007'' and
        inserting ``December 31, 2009''.
            (2) Corporations.--Section 170(b)(2)(B)(iii) (relating to
        termination) is amended by striking ``December 31, 2007'' and
        inserting ``December 31, 2009''.
        (b) Effective Date.--The amendments made by this section shall
    apply to contributions made in taxable years beginning after December
    31, 2007.
    SEC. 15303. 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 of subparagraph (A), 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 December 31, 2008.

                          Subpart B--Timber Provisions

    SEC. 15311. TEMPORARY REDUCTION IN RATE OF TAX ON QUALIFIED TIMBER GAIN
    OF CORPORATIONS.
        (a) In General.--Section 1201 (relating to alternative tax for
    corporations) is amended by redesignating subsection (b) as subsection
    (c) and by adding after subsection (a) the following new subsection:
        ``(b) Special Rate for Qualified Timber Gains.--
            ``(1) In general.--If, for any taxable year ending after the
        date of the enactment of the Food, Conservation, and Energy Act of
        2008 and beginning on or before the date which is 1 year after such
        date, a corporation has both a net capital gain and qualified
        timber gain--
                ``(A) subsection (a) shall apply to such corporation for
            the taxable year without regard to whether the applicable tax
            rate exceeds 35 percent, and
                ``(B) the tax computed under subsection (a)(2) shall be
            equal to the sum of--
                    ``(i) 15 percent of the least of--

                        ``(I) qualified timber gain,
                        ``(II) net capital gain, or
                        ``(III) taxable income, plus

                    ``(ii) 35 percent of the excess (if any) of taxable
                income over the sum of the amounts for which a tax was
                determined under subsection (a)(1) and clause (i).
            ``(2) 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--
                ``(A) the sum of the taxpayer's gains described in
            subsections (a) and (b) of section 631 for such year, over
                ``(B) the sum of the taxpayer's losses described in such
            subsections for such year.
        For purposes of subparagraphs (A) and (B), only timber held more
        than 15 years shall be taken into account.
            ``(3) Computation for taxable years in which rate first applies
        or ends.--In the case of any taxable year which includes either of
        the dates set forth in paragraph (1), the qualified timber gain for
        such year shall not exceed the qualified timber gain properly taken
        into account for--
                ``(A) in the case of the taxable year including the date of
            the enactment of the Food, Conservation, and Energy Act of
            2008, the portion of the year after such date, and
                ``(B) in the case of the taxable year including the date
            which is 1 year after such date of enactment, the portion of
            the year on or before such later date.''.
        (b) Minimum Tax.--Subsection (b) of section 55 is amended by adding
    at the end the following paragraph:
            ``(4) Maximum rate of tax on qualified timber gain of
        corporations.--In the case of any taxable year to which section
        1201(b) applies, the amount determined under clause (i) of
        subparagraph (B) shall not exceed the sum of--
                ``(A) 20 percent of so much of the taxable excess (if any)
            as exceeds the qualified timber gain (or, if less, the net
            capital gain), plus
                ``(B) 15 percent of the taxable excess in excess of the
            amount on which a tax is determined under subparagraph (A).
        Any term used in this paragraph which is also used in section 1201
        shall have the meaning given such term by such section, except to
        the extent such term is subject to adjustment under this part.''.
        (c) Conforming Amendment.--Section 857(b)(3)(A)(ii) is amended by
    striking ``rate'' and inserting ``rates''.
        (d) Effective Date.--The amendments made by this section shall
    apply to taxable years ending after the date of enactment.
    SEC. 15312. 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 from 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, with respect to any taxpayer, the
        last day of the taxpayer's first taxable year beginning after the
        date of the enactment of this paragraph and before the date that is
        1 year after such date of enactment.''.
        (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. 15313. 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 and 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. 15314. 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 ``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. 15315. 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 the 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 ``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 the 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' has the meaning given such term by
            section 856(c)(8).''.
        (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.
    SEC. 15316. 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 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.--An issue shall not be treated as failing to meet the
            requirements of subparagraph (A) by reason of any investment of
            available project proceeds during the expenditure period.
                ``(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 at a rate not more rapid than
                equal annual installments,
                    ``(ii) 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
                    ``(iii) 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 project 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 any political subdivision or
    instrumentality thereof or a 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 conveyed 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 any political subdivision or
    instrumentality thereof or a 501(c)(3) organization (as defined in
    section 150(a)(4)).
        ``(g) Special Arbitrage Rule.--In the case of any qualified
    forestry conservation bond issued as part of an issue, section
    54A(d)(4)(C) shall be applied to such issue without regard to clause
    (i).
        ``(h) Election to Treat 50 Percent of Bond Allocation as Payment of
    Tax.--
            ``(1) In general.--If--
                ``(A) a qualified issuer receives an allocation of any
            portion of the national qualified forestry conservation bond
            limitation described in subsection (c), and
                ``(B) the qualified issuer elects the application of this
            subsection with respect to such allocation,
        then the qualified issuer (without regard to whether the issuer is
        subject to tax under this chapter) shall be treated as having made
        a payment against the tax imposed by this chapter, for the taxable
        year preceding the taxable year in which the allocation is
        received, in an amount equal to 50 percent of the amount of such
        allocation.
            ``(2) Treatment of deemed payment.--
                ``(A) In general.--Notwithstanding any other provision of
            this title, the Secretary shall not use the payment of tax
            described in paragraph (1) as an offset or credit against any
            tax liability of the qualified issuer but shall refund such
            payment to such issuer.
                ``(B) No interest.--Except as provided in paragraph (3)(A),
            the payment described in paragraph (1) shall not be taken into
            account in determining any amount of interest under this title.
            ``(3) Requirement for, and effect of, election.--
                ``(A) Requirement.--No election under this subsection shall
            take effect unless the qualified issuer certifies to the
            Secretary that any payment of tax refunded to the issuer under
            this subsection will be used exclusively for 1 or more
            qualified forestry conservation purposes. If the qualified
            issuer fails to use any portion of such payment for such
            purpose, the issuer shall be liable to the United States in an
            amount equal to such portion, plus interest at the overpayment
            rate under section 6621 for the period from the date such
            portion was refunded to the date such amount is paid. Any such
            amount shall be assessed and collected in the same manner as
            tax imposed by this chapter, except that subchapter B of
            chapter 63 (relating to deficiency procedures) shall not apply
            in respect of such assessment or collection.
                ``(B) Effect of election on allocation.--If a qualified
            issuer makes the election under this subsection with respect to
            any allocation--
                    ``(i) the issuer may issue no bonds pursuant to the
                allocation, and
                    ``(ii) the Secretary may not reallocate such allocation
                for any other purpose.''.
        (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.''.

            (6) Paragraph (2) of section 1324(b) of title 31, United States
        Code, is amended by striking ``or 6428 or 53(e)'' and inserting ``,
        53(e), 54B(h), or 6428''.
        (d) Effective Dates.--The amendments made by this section shall
    apply to obligations issued after the date of the enactment of this
    Act.

                           PART II--ENERGY PROVISIONS

                         Subpart A--Cellulosic Biofuel

    SEC. 15321. 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
    (1), 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 $1.01, except that such amount
            shall, in the case of cellulosic biofuel which is alcohol, be
            reduced by the sum of--
                    ``(i) the amount of the credit in effect for such
                alcohol under subsection (b)(1) (without regard to
                subsection (b)(3)) at the time of the qualified cellulosic
                biofuel production, plus
                    ``(ii) in the case of ethanol, 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 is
            produced by the taxpayer, 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 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 gasoline or
            of cellulosic biofuel and a special fuel 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.--For purposes of this paragraph--
                    ``(i) In general.--The term `cellulosic biofuel' means
                any liquid fuel which--

                        ``(I) is produced from any lignocellulosic or
                    hemicellulosic matter that is available on a renewable
                    or recurring basis, and
                        ``(II) meets the registration requirements for
                    fuels and fuel additives established by the
                    Environmental Protection Agency under section 211 of
                    the Clean Air Act (42 U.S.C. 7545).

                    ``(ii) Exclusion of low-proof alcohol.--Such term shall
                not include any alcohol with a proof of less than 150. 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) Registration requirement.--No credit shall be
            determined under this paragraph with respect to any taxpayer
            unless such taxpayer is registered with the Secretary as a
            producer of cellulosic biofuel under section 4101.
                ``(H) Application of paragraph.--This paragraph shall apply
            with respect to qualified cellulosic biofuel production after
            December 31, 2008, and before January 1, 2013.''.
            (2) Termination date not to apply.--Subsection (e) of section
        40 (relating to termination) is amended--
                (A) by inserting ``or subsection (b)(6)(H)'' 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).''.
            (3) Conforming amendments.--
                (A) Paragraph (1) of section 4101(a) is amended--
                    (i) by striking ``and every person'' and inserting ``,
                every person'', and
                    (ii) by inserting ``, and every person producing
                cellulosic biofuel (as defined in section 40(b)(6)(E))''
                after ``section 6426(b)(4)(A))''.
                (B) The heading of section 40, and the item relating to
            such section in the table of sections for subpart D of part IV
            of subchapter A of chapter 1, are each amended by inserting ``,
            etc.,'' after ``Alcohol''.
        (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 (as defined in subsection (b)(6)(B)) for each
            gallon of such cellulosic 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 and used as a
        fuel in the United States. For purposes of this subsection, the
        term `United States' includes any possession of 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) Denial of Double Benefit.--
            (1) Biodiesel.--Paragraph (1) of section 40A(d) is amended by
        adding at the end the following new flush sentence:
        ``Such term shall not include any liquid with respect to which a
        credit may be determined under section 40.''.
            (2) Renewable diesel.--Paragraph (3) of section 40A(f) is
        amended by adding at the end the following new flush sentence:
        ``Such term shall not include any liquid with respect to which a
        credit may be determined under section 40.''.
        (g) Effective Date.--The amendments made by this section shall
    apply to fuel produced after December 31, 2008.
    SEC. 15322. COMPREHENSIVE STUDY OF BIOFUELS.
        (a) Study.--The Secretary of the Treasury, in consultation with the
    Secretary of Agriculture, the Secretary of Energy, and the
    Administrator of the Environmental Protection Agency, shall enter into
    an agreement with the National Academy of Sciences to produce an
    analysis of current scientific findings to determine--
            (1) current biofuels production, as well as projections for
        future production,
            (2) the maximum amount of biofuels production capable in United
        States forests and farmlands, including the current quantities and
        character of the feedstocks and including such information as
        regional forest inventories that are commercially available, used
        in the production of biofuels,
            (3) the domestic effects of an increase in biofuels production
        levels, including the effects of such levels on--
                (A) the price of fuel,
                (B) the price of land in rural and suburban communities,
                (C) crop acreage, forest acreage, and other land use,
                (D) the environment, due to changes in crop acreage,
            fertilizer use, runoff, water use, emissions from vehicles
            utilizing biofuels, and other factors,
                (E) the price of feed,
                (F) the selling price of grain crops and forest products,
                (G) exports and imports of grains and forest products,
                (H) taxpayers, through cost or savings to commodity crop
            payments, and
                (I) the expansion of refinery capacity,
            (4) the ability to convert corn ethanol plants for other uses,
        such as cellulosic ethanol or biodiesel,
            (5) a comparative analysis of corn ethanol versus other
        biofuels and renewable energy sources, considering cost, energy
        output, and ease of implementation,
            (6) the impact of the tax credit established by this subpart on
        the regional agricultural and silvicultural capabilities of
        commercially available forest inventories, and
            (7) the need for additional scientific inquiry, and specific
        areas of interest for future research.
        (b) Report.--The Secretary of the Treasury shall submit an initial
    report of the findings of the study required under subsection (a) to
    Congress not later than 6 months after the date of the enactment of
    this Act (36 months after such date in the case of the information
    required by subsection (a)(6)), and a final report not later than 12
    months after such date (42 months after such date in the case of the
    information required by subsection (a)(6)).

                         Subpart B--Revenue Provisions

    SEC. 15331. MODIFICATION OF ALCOHOL CREDIT.
        (a) Income Tax Credit.--
            (1) In general.--The table in paragraph (2) of section 40(h) is
        amended--
                (A) by striking ``through 2010'' in the first column and
            inserting ``, 2006, 2007, or 2008'',
                (B) by striking the period at the end of the third row, and
                (C) by adding at the end the following new row:

    ``2009 through 2010...................  45 cents.....................  33.33 cents.''.

            (2) Exception.--Section 40(h) is amended by adding at the end
        the following new paragraph:
            ``(3) Reduction delayed until annual production or importation
        of 7,500,000,000 gallons.--
                ``(A) In general.--In the case of any calendar year
            beginning after 2008, if the Secretary makes a determination
            described in subparagraph (B) with respect to all preceding
            calendar years beginning after 2007, the last row in the table
            in paragraph (2) shall be applied by substituting `51 cents'
            for `45 cents'.
                ``(B) Determination.--A determination described in this
            subparagraph with respect to any calendar year is a
            determination, in consultation with the Administrator of the
            Environmental Protection Agency, that an amount less than
            7,500,000,000 gallons of ethanol (including cellulosic ethanol)
            has been produced in or imported into the United States in such
            year.''.
        (b) Excise Tax Credit.--
            (1) In general.--Subparagraph (A) of section 6426(b)(2)
        (relating to alcohol fuel mixture credit) is amended by striking
        ``the applicable amount is 51 cents'' and inserting ``the
        applicable amount is--
                    ``(i) in the case of calendar years beginning before
                2009, 51 cents, and
                    ``(ii) in the case of calendar years beginning after
                2008, 45 cents.''.
            (2) Exception.--Paragraph (2) of section 6426(b) is amended by
        adding at the end the following new subparagraph:
                ``(C) Reduction delayed until annual production or
            importation of 7,500,000,000 gallons.--In the case of any
            calendar year beginning after 2008, if the Secretary makes a
            determination described in section 40(h)(3)(B) with respect to
            all preceding calendar years beginning after 2007, subparagraph
            (A)(ii) shall be applied by substituting `51 cents' for `45
            cents'.''
            (3) 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. 15332. 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, 2008.
    SEC. 15333. 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. 15334. LIMITATIONS ON 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, any duty paid under subheading 9901.00.50 of the
        Harmonized Tariff Schedule of the United States on imports of ethyl
        alcohol or a mixture of ethyl alcohol may not be refunded if the
        exported article upon which a drawback claim is based does not
        contain ethyl alcohol or a mixture of ethyl alcohol.''.
        (b) Effective Date.--The amendment made by this section applies
    with respect to--
            (1) imports of ethyl alcohol or a mixture of ethyl alcohol
        entered for consumption, or withdrawn from warehouse for
        consumption, on or after October 1, 2008; and
            (2) imports of ethyl alcohol or a mixture of ethyl alcohol
        entered for consumption, or withdrawn from warehouse for
        consumption, before October 1, 2008, if a duty drawback claim is
        filed with respect to such imports on or after October 1, 2010.

                       PART III--AGRICULTURAL PROVISIONS

    SEC. 15341. 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. 15342. 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. 15343. 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. 15344. 3-YEAR DEPRECIATION FOR RACE HORSES THAT ARE 2-YEARS OLD OR
    YOUNGER.
        (a) In General.--Clause (i) of section 168(e)(3)(A) (relating to 3-
    year property) is amended to read as follows:
                    ``(i) any race horse--

                        ``(I) which is placed in service before January 1,
                    2014, and
                        ``(II) which is placed in service after December
                    31, 2013, and which is more than 2 years old at the
                    time such horse is placed in service by such
                    purchaser,''.

        (b) Effective Date.--The amendment made by this section shall apply
    to property placed in service after December 31, 2008.
    SEC. 15345. TEMPORARY TAX RELIEF FOR KIOWA COUNTY, KANSAS AND
    SURROUNDING AREA.
        (a) In General.--Subject to the modifications described in this
    section, the following provisions of or relating to the Internal
    Revenue Code of 1986 shall apply to the Kansas disaster area in
    addition to the areas to which such provisions otherwise apply:
            (1) Section 1400N(d) of such Code (relating to special
        allowance for certain property).
            (2) Section 1400N(e) of such Code (relating to increase in
        expensing under section 179).
            (3) Section 1400N(f) of such Code (relating to expensing for
        certain demolition and clean-up costs).
            (4) Section 1400N(k) of such Code (relating to treatment of net
        operating losses attributable to storm losses).
            (5) Section 1400N(n) of such Code (relating to treatment of
        representations regarding income eligibility for purposes of
        qualified rental project requirements).
            (6) Section 1400N(o) of such Code (relating to treatment of
        public utility property disaster losses).
            (7) Section 1400Q of such Code (relating to special rules for
        use of retirement funds).
            (8) Section 1400R(a) of such Code (relating to employee
        retention credit for employers).
            (9) Section 1400S(b) of such Code (relating to suspension of
        certain limitations on personal casualty losses).
            (10) Section 405 of the Katrina Emergency Tax Relief Act of
        2005 (relating to extension of replacement period for
        nonrecognition of gain).
        (b) Kansas Disaster Area.--For purposes of this section, the term
    ``Kansas disaster area'' means 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 attributable to such storms and tornados.
        (c) References to Area or Loss.--
            (1) Area.--Any reference in such provisions to the Katrina
        disaster area or the Gulf Opportunity Zone shall be treated as a
        reference to the Kansas disaster area.
            (2) Loss.--Any reference in such provisions to any loss or
        damage attributable to Hurricane Katrina shall be treated as a
        reference to any loss or damage attributable to the May 4, 2007,
        storms and tornados.
        (d) References to Dates, etc.--
            (1) 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.
            (2) 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.
            (3) 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.
            (4) 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.
            (5) 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 ``May 4, 2007'' for ``August 28, 2005''
            in subsections (a)(4)(A)(i) and (c)(3)(B),
                (D) disregarding clauses (ii) and (iii) of subsection
            (a)(4)(A),
                (E) by substituting ``qualified storm distribution'' for
            ``qualified Katrina distribution'' each place it appears,
                (F) 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),
                (G) by substituting ``the Kansas disaster area (as defined
            in section 15345(b) of the Food, Conservation, and Energy Act
            of 2008) but which was not so purchased or constructed on
            account of the May 4, 2007, storms and tornados'' for ``the
            Hurricane Katrina disaster area, but not so purchased or
            constructed on account of Hurricane Katrina'' in subsection
            (b)(2)(B)(iii),
                (H) by substituting ``beginning on May 4, 2007, and ending
            on the date which is 5 months after the date of the enactment
            of the Heartland, Habitat, Harvest, and Horticulture Act of
            2008'' for ``beginning on August 25, 2005, and ending on
            February 28, 2006'' in subsection (b)(3)(A),
                (I) by substituting ``qualified storm individual'' for
            ``qualified Hurricane Katrina individual'' each place it
            appears,
                (J) by substituting ``December 31, 2008'' for ``December
            31, 2006'' in subsection (c)(2)(A),
                (K) by substituting ``beginning on the date of the
            enactment of the Food, Conservation, and Energy Act of 2008 and
            ending on December 31, 2008'' for ``beginning on September 24,
            2005, and ending on December 31, 2006'' in subsection
            (c)(4)(A)(i),
                (L) by substituting ``May 4, 2007'' for ``August 25, 2005''
            in subsection (c)(4)(A)(ii), and
                (M) by substituting ``January 1, 2009'' for ``January 1,
            2007'' in subsection (d)(2)(A)(ii).
            (6) 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.
            (7) 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''.
            (8) 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'' for ``on or after
        August 25, 2005''.
    SEC. 15346. 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.

                       PART IV--OTHER REVENUE PROVISIONS

    SEC. 15351. LIMITATION ON EXCESS FARM 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 Excess Farm Losses of Certain Taxpayers.--
            ``(1) Limitation.--If a taxpayer other than a C corporation
        receives any applicable subsidy for any taxable year, any excess
        farm loss of the taxpayer for the taxable year shall not be
        allowed.
            ``(2) Disallowed loss carried to next taxable 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.
            ``(3) Applicable subsidy.--For purposes of this subsection, the
        term `applicable subsidy' means--
                ``(A) any direct or counter-cyclical payment under title I
            of the Food, Conservation, and Energy Act of 2008, or any
            payment elected to be received in lieu of any such payment, or
                ``(B) any Commodity Credit Corporation loan.
            ``(4) Excess farm loss.--For purposes of this subsection--
                ``(A) In general.--The term `excess farm loss' means the
            excess of--
                    ``(i) the aggregate deductions of the taxpayer for the
                taxable year which are attributable to farming businesses
                of such taxpayer (determined without regard to whether or
                not such deductions are disallowed for such taxable year
                under paragraph (1)), over
                    ``(ii) the sum of--

                        ``(I) the aggregate gross income or gain of such
                    taxpayer for the taxable year which is attributable to
                    such farming businesses, plus
                        ``(II) the threshold amount for the taxable year.

                ``(B) Threshold amount.--
                    ``(i) In general.--The term `threshold amount' means,
                with respect to any taxable year, the greater of--

                        ``(I) $300,000 ($150,000 in the case of married
                    individuals filing separately), or
                        ``(II) the excess (if any) of the aggregate amounts
                    described in subparagraph (A)(ii)(I) for the 5-
                    consecutive taxable year period preceding the taxable
                    year over the aggregate amounts described in
                    subparagraph (A)(i) for such period.

                    ``(ii) Special rules for determining aggregate
                amounts.--For purposes of clause (i)(II)--

                        ``(I) notwithstanding the disregard in subparagraph
                    (A)(i) of any disallowance under paragraph (1), in the
                    case of any loss which is carried forward under
                    paragraph (2) from any taxable year, such loss (or any
                    portion thereof) shall be taken into account for the
                    first taxable year in which a deduction for such loss
                    (or portion) is not disallowed by reason of this
                    subsection, and
                        ``(II) the Secretary shall prescribe rules for the
                    computation of the aggregate amounts described in such
                    clause in cases where the filing status of the taxpayer
                    is not the same for the taxable year and each of the
                    taxable years in the period described in such clause.

                ``(C) Farming business.--
                    ``(i) In general.--The term `farming business' has the
                meaning given such term in section 263A(e)(4).
                    ``(ii) Certain trades and businesses included.--If,
                without regard to this clause, a taxpayer is engaged in a
                farming business with respect to any agricultural or
                horticultural commodity--

                        ``(I) the term `farming business' shall include any
                    trade or business of the taxpayer of the processing of
                    such commodity (without regard to whether the
                    processing is incidental to the growing, raising, or
                    harvesting of such commodity), and
                        ``(II) if the taxpayer is a member of a cooperative
                    to which subchapter T applies, any trade or business of
                    the cooperative described in subclause (I) shall be
                    treated as the trade or business of the taxpayer.

                ``(D) Certain losses disregarded.--For purposes of
            subparagraph (A)(i), there shall not be taken into account any
            deduction for any loss arising by reason of fire, storm, or
            other casualty, or by reason of disease or drought, involving
            any farming business.
            ``(5) Application of subsection in case of partnerships and s
        corporations.--In the case of a partnership or S corporation--
                ``(A) this subsection shall be applied at the partner or
            shareholder level, and
                ``(B) each partner's or shareholder's proportionate share
            of the items of income, gain, or deduction of the partnership
            or S corporation for any taxable year from farming businesses
            attributable to the partnership or S corporation, and of any
            applicable subsidies received by the partnership or S
            corporation during the taxable year, shall be taken into
            account by the partner or shareholder in applying this
            subsection to the taxable year of such partner or shareholder
            with or within which the taxable year of the partnership or S
            corporation ends.
        The Secretary may provide rules for the application of this
        paragraph to any other pass-thru entity to the extent necessary to
        carry out the provisions of this subsection.
            ``(6) Additional reporting.--The Secretary may prescribe such
        additional reporting requirements as the Secretary determines
        appropriate to carry out the purposes of this subsection.
            ``(7) Coordination with section 469.--This subsection shall be
        applied before the application of section 469.''.
        (b) Effective Date.--The amendment made by this section shall apply
    to taxable years beginning after December 31, 2009.
    SEC. 15352. 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:
        ``(k) Upper and Lower Limits.--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. 15353. 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.

                     PART V--PROTECTION OF SOCIAL SECURITY

    SEC. 15361. 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, $5,000,000.
            (2) For fiscal year 2010, $9,000,000.
            (3) For fiscal year 2011, $8,000,000.
            (4) For fiscal year 2012, $7,000,000.
            (5) For fiscal year 2013, $8,000,000.
            (6) For fiscal year 2014, $8,000,000.
            (7) For fiscal year 2015, $8,000,000.
            (8) For fiscal year 2016, $6,000,000.
            (9) For fiscal year 2017, $7,000,000.

                          Subtitle D--Trade Provisions

                  PART I--EXTENSION OF CERTAIN TRADE BENEFITS

    SEC. 15401. SHORT TITLE.
        This part may be cited as the ``Haitian Hemispheric Opportunity
    through Partnership Encouragement Act of 2008'' or the ``HOPE II Act''.
    SEC. 15402. BENEFITS FOR APPAREL AND OTHER TEXTILE ARTICLES.
        (a) Value-Added Rule.--Section 213A(b) of the Carribean Basin
    Economic Recovery Act (19 U.S.C. 2703a(b)) is amended as follows:
            (1) The subsection heading is amended to read as follows:
        ``Apparel and Other Textile Articles''.
            (2) Paragraph (1) is amended to read as follows:
            ``(1) Value-added rule for apparel articles.--
                ``(A) In general.--Apparel articles described in
            subparagraph (B) of a producer or entity controlling production
            that are imported directly from Haiti or the Dominican Republic
            shall enter the United States free of duty during an applicable
            1-year period, subject to the limitations set forth in
            subparagraphs (B) and (C), and subject to subparagraph (D).''.
            (3) Paragraph (2) is amended--
                (A) in subparagraph (A)--
                    (i) by moving such subparagraph 2 ems to the right;
                    (ii) in clause (i), by striking ``subparagraph (C)''
                and inserting ``clause (iii)'';
                    (iii) in clause (ii), by striking ``subparagraph (C)''
                and inserting ``clause (iii)'';
                    (iv) in the matter following clause (ii), by striking
                ``subparagraph (E)(I)'' and inserting ``clause (v)(I)'';
                    (v) by redesignating clauses (i) and (ii) as subclauses
                (I) and (II), respectively; and
                    (vi) by redesignating subparagraph (A) as clause (i);
                (B) in subparagraph (B)--
                    (i) by moving such subparagraph 2 ems to the right;
                    (ii) by striking ``subparagraph (A)(i)'' each place it
                appears and inserting ``clause (i)(I)'';
                    (iii) by redesignating clauses (i) and (ii) as
                subclauses (I) and (II), respectively; and
                    (iv) by redesignating subparagraph (B) as clause (ii);
                (C) in subparagraph (C)--
                    (i) by moving such subparagraph 2 ems to the right;
                    (ii) in the matter preceding clause (i), by striking
                ``subparagraph (A)'' and inserting ``clause (i)'';
                    (iii) in clause (ii), by striking ``that enters into
                force'' and all that follows through ``et seq.)'' and
                inserting ``that enters into force thereafter'';
                    (iv) by redesignating clauses (i) through (v) as
                subclauses (I) through (V), respectively; and
                    (v) by redesignating subparagraph (C) as clause (iii);
                (D) in subparagraph (D)--
                    (i) by moving such subparagraph 2 ems to the right;
                    (ii) in clause (i)--

                        (I) in the matter preceding subclause (I), by
                    striking ``subparagraph (A)'' and inserting ``clause
                    (i)'';
                        (II) in subclause (I), by striking ``clause (i) of
                    subparagraph (A)'' and inserting ``subclause (I) of
                    clause (i)'';
                        (III) in subclause (II), by striking ``clause (ii)
                    of subparagraph (A)'' and inserting ``subclause (II) of
                    clause (i)'';
                        (IV) by redesignating subclauses (I) and (II) as
                    items (aa) and (bb), respectively; and
                        (V) by redesignating clause (i) as subclause (I);

                    (iii) in clause (ii)--

                        (I) in the matter preceding subclause (I), by
                    striking ``subparagraph (A)'' and inserting ``clause
                    (i)'';
                        (II) in subclause (I), by striking ``clause (i) of
                    subparagraph (A)'' and inserting ``subclause (I) of
                    clause (i)'';
                        (III) in subclause (II), by striking ``clause (ii)
                    of subparagraph (A)'' and inserting ``subclause (II) of
                    clause (i)'';
                        (IV) by redesignating subclauses (I) and (II) as
                    items (aa) and (bb), respectively; and
                        (V) by redesignating clause (ii) as subclause (II);

                    (iv) in clause (iii)--

                        (I) by striking ``clause (i)(I) or (ii)(I)'' each
                    place it appears and inserting ``subclause (I)(aa) or
                    (II)(aa)'';
                        (II) by redesignating subclauses (I) and (II) as
                    items (aa) and (bb), respectively; and
                        (III) by redesignating clause (iii) as subclause
                    (III);

                    (v) by amending clause (iv) to read as follows:

                        ``(IV) Inclusion in calculation of other articles
                    receiving preferential treatment.--Entries of apparel
                    articles that receive preferential treatment under any
                    provision of law other than this subparagraph or are
                    subject to the `General' column 1 rate of duty under
                    the HTS are not included in the annual aggregation
                    under subclause (I) or (II) unless the producer or
                    entity controlling production elects, at the time the
                    annual aggregation calculation is made, to include such
                    entries in such aggregation.''; and

                    (vi) by redesignating subparagraph (D) as clause (iv);
                (E) in subparagraph (E)--
                    (i) by moving such subparagraph 2 ems to the right;
                    (ii) in clause (i)--

                        (I) by redesignating subclauses (I) through (III)
                    as items (aa) through (cc), respectively; and
                        (II) by redesignating clause (i) as subclause (I);

                    (iii) in clause (ii)--

                        (I) by striking ``subparagraph (C)'' and inserting
                    ``clause (iii)''; and
                        (II) by redesignating clause (ii) as subclause
                    (II); and

                    (iv) by redesignating subparagraph (E) as clause (v);
                (F) in subparagraph (F)--
                    (i) by moving such subparagraph 2 ems to the right;
                    (ii) in clause (i)--

                        (I) by striking ``The Bureau of Customs and Border
                    Protection'' and inserting ``U.S. Customs and Border
                    Protection'';
                        (II) by striking ``subparagraphs (A) and (D)'' and
                    inserting ``clauses (i) and (iv)''; and
                        (III) by redesignating clause (i) as subclause (I);

                    (iii) in clause (ii)--

                        (I) in the matter preceding subclause (I)--

                            (aa) by striking ``the Bureau of Customs and
                        Border Protection'' and inserting ``U.S. Customs
                        and Border Protection'';
                            (bb) by striking ``subparagraph (A)'' each
                        place it appears and inserting ``clause (i)''; and
                            (cc) by striking ``subparagraph (D)'' and
                        inserting ``clause (iv)'';

                        (II) in subclause (I), by striking ``clause (i) of
                    subparagraph (A)'' and inserting ``subclause (I) of
                    clause (i)'';
                        (III) in subclause (II), by striking ``clause (ii)
                    of subparagraph (A)'' and inserting ``subclause (II) of
                    clause (i)'';
                        (IV) in the matter following subclause (II), by
                    striking ``subparagraph (E)(i)'' and inserting ``clause
                    (v)(I)'';
                        (V) by redesignating subclauses (I) and (II) as
                    items (aa) and (bb), respectively; and
                        (VI) by redesignating clause (ii) as subclause
                    (II);

                    (iv) in clause (iii)--

                        (I) in subclause (I)--

                            (aa) by striking ``paragraph (1)'' and
                        inserting ``subparagraph (A)''; and
                            (bb) by striking ``subparagraph (A) or (D)''
                        and inserting ``clause (i) or (iv)'';

                        (II) in subclause (II), by striking ``clause (ii)
                    of this subparagraph'' and inserting ``subclause (II)
                    of this clause'';
                        (III) in the matter following subclause (II)--

                            (aa) by striking ``the Bureau of Customs and
                        Border Protection'' each place it appears and
                        inserting ``U.S. Customs and Border Protection'';
                        and
                            (bb) by striking ``subclause (II)'' and
                        inserting ``item (bb)''; and

                        (IV) in item (bb)--

                            (aa) by striking ``paragraph (1)'' and
                        inserting ``subparagraph (A)''; and
                            (bb) by striking ``subparagraph (A) or (D)''
                        and inserting ``clause (i) or (iv)''; and

                        (V) in the matter following item (bb), by striking
                    ``paragraph (1)'' and inserting ``subparagraph (A)'';
                        (VI) by redesignating items (aa) and (bb) as
                    subitems (AA) and (BB), respectively;
                        (VII) by redesignating subclauses (I) and (II) as
                    items (aa) and (bb), respectively; and
                        (VIII) by redesignating clause (iii) as subclause
                    (III); and

                    (v) by redesignating subparagraph (F) as clause (vi);
                (G) in subparagraph (G)--
                    (i) by moving such subparagraph 2 ems to the right;
                    (ii) in clause (i)--

                        (I) in the matter preceding subclause (I), by
                    striking ``subparagraph (A) or (D)'' and inserting
                    ``clause (i) or (iv)'';
                        (II) in subclause (II)--

                            (aa) in item (dd), by striking ``under the
                        Bipartisan Trade Promotion Authority Act of 2002''
                        and inserting ``with respect to the United
                        States''; and
                            (bb) by redesignating items (aa) through (dd)
                        as subitems (AA) through (DD), respectively;

                        (III) by redesignating subclauses (I) and (II) as
                    items (aa) and (bb), respectively; and
                        (IV) by redesignating clause (i) as subclause (I);

                    (iii) in clause (ii)--

                        (I) in subclause (I), by striking ``clause (i)(I)''
                    and inserting ``subclause (I)(aa)'';
                        (II) in subclause (II), by striking ``clause
                    (i)(II)'' and inserting ``subclause (I)(bb)'';
                        (III) by redesignating subclauses (I) and (II) as
                    items (aa) and (bb), respectively; and
                        (IV) by redesignating clause (ii) as subclause
                    (II); and

                    (iv) by redesignating subparagraph (G) as clause (vii);
                and
                (H) by striking ``(2) Apparel articles described.--'' and
            inserting the following:
                ``(B) Apparel articles described.--''.
            (4) Paragraph (3) is amended--
                (A) by redesignating such paragraph as subparagraph (C) and
            moving it 2 ems to the right;
                (B) by striking ``paragraph (1)'' each place it appears and
            inserting ``subparagraph (A)''; and
                (C) in the table--
                    (i) by striking ``1.5 percent'' and inserting ``1.25
                percent'';
                    (ii) by striking ``1.75 percent'' and inserting ``1.25
                percent''; and
                    (iii) by striking ``2 percent'' and inserting ``1.25
                percent''.
            (5) The following is added after subparagraph (C), as
        redesignated by paragraph (4)(A) of this subsection:
                ``(D) Other preferential treatment not affected by
            quantitative limitations.--Any apparel article that qualifies
            for preferential treatment under paragraph (2), (3), (4), or
            (5) or any other provision of this title shall not be subject
            to, or included in the calculation of, the quantitative
            limitations under subparagraph (C).''.
        (b) Special Rule for Woven Articles and Certain Knit Articles.--
    Section 213A(b) of the Carribean Basin Economic Recovery Act is amended
    by striking paragraph (4) and inserting the following:
            ``(2) Special rule for woven articles and certain knit
        articles.--
                ``(A) Special rule for articles of chapter 62 of the hts.--
                    ``(i) General rule.--Any apparel article classifiable
                under chapter 62 of the HTS that is wholly assembled, or
                knit-to-shape, in Haiti from any combination of fabrics,
                fabric components, components knit-to-shape, or yarns and
                is imported directly from Haiti or the Dominican Republic
                shall enter the United States free of duty, subject to
                clauses (ii) and (iii), without regard to the source of the
                fabric, fabric components, components knit-to-shape, or
                yarns from which the article is made.
                    ``(ii) Limitation.--The preferential treatment
                described in clause (i) shall be extended, in the 1-year
                period beginning October 1, 2008, and in each of the 9
                succeeding 1-year periods, to not more than 70,000,000
                square meter equivalents of apparel articles described in
                such clause.
                    ``(iii) Other preferential treatment not affected by
                quantitative limitation.--Any apparel article that
                qualifies for preferential treatment under paragraph (1),
                (3), (4), or (5) or subparagraph (B) of this paragraph or
                any other provision of this title shall not be subject to,
                or included in the calculation of, the quantitative
                limitation under clause (ii).
                ``(B) Special rule for certain articles of chapter 61 of
            the hts.--
                    ``(i) General rule.--Any apparel article classifiable
                under chapter 61 of the HTS that is wholly assembled, or
                knit-to-shape, in Haiti from any combination of fabrics,
                fabric components, components knit-to-shape, or yarns and
                is imported directly from Haiti or the Dominican Republic
                shall enter the United States free of duty, subject to
                clauses (ii), (iii), and (iv), without regard to the source
                of the fabric, fabric components, components knit-to-shape,
                or yarns from which the article is made.
                    ``(ii) Exclusions.--The preferential treatment
                described in clause (i) shall not apply to the following:

                        ``(I) The following apparel articles of cotton, for
                    men or boys, that are classifiable under subheading
                    6109.10.00 of the HTS:

                            ``(aa) All white T-shirts, with short hemmed
                        sleeves and hemmed bottom, with crew or round
                        neckline or with V-neck and with a mitered seam at
                        the center of the V, and without pockets, trim, or
                        embroidery.
                            ``(bb) All white singlets, without pockets,
                        trim, or embroidery.
                            ``(cc) Other T-shirts, but not including
                        thermal undershirts.

                        ``(II) T-shirts for men or boys that are
                    classifiable under subheading 6109.90.10.
                        ``(III) The following apparel articles of cotton,
                    for men or boys, that are classifiable under subheading
                    6110.20.20 of the HTS:

                            ``(aa) Sweatshirts.
                            ``(bb) Pullovers, other than sweaters, vests,
                        or garments imported as part of playsuits.

                        ``(IV) Sweatshirts for men or boys, of man-made
                    fibers and containing less than 65 percent by weight of
                    man-made fibers, that are classifiable under subheading
                    6110.30.30 of the HTS.

                    ``(iii) Limitation.--The preferential treatment
                described in clause (i) shall be extended, in the 1-year
                period beginning October 1, 2008, and in each of the 9
                succeeding 1-year periods, to not more than 70,000,000
                square meter equivalents of apparel articles described in
                such clause.
                    ``(iv) Other preferential treatment not affected by
                quantitative limitation.--Any apparel article that
                qualifies for preferential treatment under paragraph (1),
                (3), (4), or (5) or subparagraph (A) of this paragraph or
                any other provision of this title shall not be subject to,
                or included in the calculation of, the quantitative
                limitation under clause (iii).''.
        (c) Single Transformation Rules Not Subject to Quantitative
    Limitations.--Section 213A(b) of the Caribbean Basin Economic Recovery
    Act is amended by striking paragraph (5) and inserting the following:
            ``(3) Apparel and other articles subject to certain assembly
        rules.--
                ``(A) Brassieres.--Any apparel article classifiable under
            subheading 6212.10 of the HTS that is wholly assembled, or
            knit-to-shape, in Haiti from any combination of fabrics, fabric
            components, components knit-to-shape, or yarns and is imported
            directly from Haiti or the Dominican Republic shall enter the
            United States free of duty, without regard to the source of the
            fabric, fabric components, components knit-to-shape, or yarns
            from which the article is made.
                ``(B) Other apparel articles.--Any of the following apparel
            articles that is wholly assembled, or knit-to-shape, in Haiti
            from any combination of fabrics, fabric components, components
            knit-to-shape, or yarns and is imported directly from Haiti or
            the Dominican Republic shall enter the United States free of
            duty, without regard to the source of the fabric, fabric
            components, components knit-to-shape, or yarns from which the
            article is made:
                    ``(i) Any apparel article that is of a type listed in
                chapter rule 3, 4, or 5 for chapter 61 of the HTS (as such
                chapter rules are contained in section A of the Annex to
                Proclamation 8213 of the President of December 20, 2007) as
                being excluded from the scope of such chapter rule, when
                such chapter rule is applied to determine whether an
                apparel article is an originating good for purposes of
                general note 29(n) to the HTS, except that, for purposes of
                this clause, reference in such chapter rules to
                `6104.12.00' shall be deemed to be a reference to
                `6104.19.60'.
                    ``(ii)(I) Subject to subclause (II), any apparel
                article that is of a type listed in chapter rule 3(a),
                4(a), or 5(a) for chapter 62 of the HTS, as such chapter
                rules are contained in paragraph 9 of section A of the
                Annex to Proclamation 8213 of the President of December 20,
                2007.
                    ``(II) Subclause (I) shall not include any apparel
                article to which subparagraph (A) of this paragraph
                applies.
                ``(C) Luggage and similar items.--Any article classifiable
            under subheading 4202.12, 4202.22, 4202.32 or 4202.92 of the
            HTS that is wholly assembled in Haiti and is imported directly
            from Haiti or the Dominican Republic shall enter the United
            States free of duty, without regard to the source of the
            fabric, components, or materials from which the article is
            made.
                ``(D) Headgear.--Any article classifiable under heading
            6501, 6502, or 6504 of the HTS, or under subheading 6505.90 of
            the HTS, that is wholly assembled, knit-to-shape, or formed in
            Haiti from any combination of fabrics, fabric components,
            components knit-to-shape, or yarns and is imported directly
            from Haiti or the Dominican Republic shall enter the United
            States free of duty, without regard to the source of the
            fabric, fabric components, components knit-to-shape, or yarns
            from which the article is made.
                ``(E) Certain sleepwear.--Any of the following apparel
            articles that is wholly assembled, or knit-to-shape, in Haiti
            from any combination of fabrics, fabric components, components
            knit-to-shape, or yarns and is imported directly from Haiti or
            the Dominican Republic shall enter the United States free of
            duty, without regard to the source of the fabric, fabric
            components, components knit-to-shape, or yarns from which the
            article is made:
                    ``(i) Pajama bottoms and other sleepwear for women and
                girls, of cotton, that are classifiable under subheading
                6208.91.30, or of man-made fibers, that are classifiable
                under subheading 6208.92.00.
                    ``(ii) Pajama bottoms and other sleepwear for girls, of
                other textile materials, that are classifiable under
                subheading 6208.99.20.''.
        (d) Earned Import Allowance Rules.--Section 231A(b) of the
    Caribbean Basin Economic Recovery Act is amended by adding at the end
    the following new paragraph:
            ``(4) Earned import allowance rule.--
                ``(A) In general.--Apparel articles wholly assembled, or
            knit-to-shape, in Haiti from any combination of fabrics, fabric
            components, components knit-to-shape, or yarns and imported
            directly from Haiti or the Dominican Republic shall enter the
            United States free of duty, without regard to the source of the
            fabric, fabric components, components knit-to-shape, or yarns
            from which the articles are made, if such apparel articles are
            accompanied by an earned import allowance certificate that
            reflects the amount of credits equal to the total square meter
            equivalents of such apparel articles, in accordance with the
            program established under subparagraph (B). For purposes of
            determining the quantity of square meter equivalents under this
            subparagraph, the conversion factors listed in `Correlation:
            U.S. Textile and Apparel Industry Category System with the
            Harmonized Tariff Schedule of the United States of America,
            2008', or its successor publications, of the United States
            Department of Commerce, shall apply.
                ``(B) Earned import allowance program.--
                    ``(i) Establishment.--The Secretary of Commerce shall
                establish a program to provide earned import allowance
                certificates to any producer or entity controlling
                production for purposes of subparagraph (A), based on the
                elements described in clause (ii).
                    ``(ii) Elements.--The elements referred to in clause
                (i) are the following:

                        ``(I) One credit shall be issued to a producer or
                    an entity controlling production for every three square
                    meter equivalents of qualifying woven fabric or
                    qualifying knit fabric that the producer or entity
                    controlling production can demonstrate that it
                    purchased for the manufacture in Haiti of articles like
                    or similar to any article eligible for preferential
                    treatment under subparagraph (A). The Secretary of
                    Commerce shall, if requested by a producer or entity
                    controlling production, create and maintain an account
                    for such producer or entity controlling production,
                    into which such credits shall be deposited.
                        ``(II) Such producer or entity controlling
                    production may redeem credits issued under subclause
                    (I) for earned import allowance certificates reflecting
                    such number of earned credits as the producer or entity
                    may request and has available.
                        ``(III) The Secretary of Commerce may require any
                    textile mill or other entity located in the United
                    States that exports to Haiti qualifying woven fabric or
                    qualifying knit fabric to submit, upon such export or
                    upon request, documentation, such as a Shipper's Export
                    Declaration, to the Secretary of Commerce--

                            ``(aa) verifying that the qualifying woven
                        fabric or qualifying knit fabric was exported to a
                        producer in Haiti or to an entity controlling
                        production; and
                            ``(bb) identifying such producer or entity
                        controlling production, and the quantity and
                        description of qualifying woven fabric or
                        qualifying knit fabric exported to such producer or
                        entity controlling production.

                        ``(IV) The Secretary of Commerce may require that a
                    producer or entity controlling production submit
                    documentation to verify purchases of qualifying woven
                    fabric or qualifying knit fabric.
                        ``(V) The Secretary of Commerce may make available
                    to each person or entity identified in documentation
                    submitted under subclause (III) or (IV) information
                    contained in such documentation that relates to the
                    purchase of qualifying woven fabric or qualifying knit
                    fabric involving such person or entity.
                        ``(VI) The program under this subparagraph shall be
                    established so as to allow, to the extent feasible, the
                    submission, storage, retrieval, and disclosure of
                    information in electronic format, including information
                    with respect to the earned import allowance
                    certificates required under subparagraph (A)(i).
                        ``(VII) The Secretary of Commerce may reconcile
                    discrepancies in information provided under subclause
                    (III) or (IV) and verify the accuracy of such
                    information.
                        ``(VIII) The Secretary of Commerce shall establish
                    procedures to carry out the program under this
                    subparagraph and may establish additional requirements
                    to carry out this subparagraph. Such additional
                    requirements may include--

                            ``(aa) submissions by textile mills or other
                        entities in the United States documenting exports
                        of yarns wholly formed in the United States to
                        countries described in paragraph (1)(B)(iii) for
                        the manufacture of qualifying knit fabric; and
                            ``(bb) procedures imposed on producers or
                        entities controlling production to allow the
                        Secretary of Commerce to obtain and verify
                        information relating to the production of
                        qualifying knit fabric.
                    ``(iii) Qualifying woven fabric defined.--For purposes
                of this subparagraph, the term `qualifying woven fabric'
                means fabric wholly formed in the United States from yarns
                wholly formed in the United States, except that--

                        ``(I) fabric otherwise eligible as qualifying woven
                    fabric shall not be ineligible as qualifying woven
                    fabric because the fabric contains nylon filament yarn
                    to which section 213(b)(2)(A)(vii)(IV) applies;
                        ``(II) fabric that would otherwise be ineligible as
                    qualifying woven fabric because the fabric contains
                    yarns not wholly formed in the United States shall not
                    be ineligible as qualifying woven fabric if the total
                    weight of all such yarns is not more than 10 percent of
                    the total weight of the fabric; and
                        ``(III) fabric otherwise eligible as qualifying
                    woven fabric shall not be ineligible as qualifying
                    fabric because the fabric contains yarns covered by
                    clause (i) or (ii) of paragraph (5)(A).

                    ``(iv) Qualifying knit fabric defined.--For purposes of
                this subparagraph, the term `qualifying knit fabric' means
                fabric or knit-to-shape components wholly formed or knit-
                to-shape in any country or any combination of countries
                described in paragraph (1)(B)(iii), from yarns wholly
                formed in the United States, except that--

                        ``(I) fabric or knit-to-shape components otherwise
                    eligible as qualifying knit fabric shall not be
                    ineligible as qualifying knit fabric because the fabric
                    or knit-to-shape components contain nylon filament yarn
                    to which section 213(b)(2)(A)(vii)(IV) applies;
                        ``(II) fabric or knit-to-shape components that
                    would otherwise be ineligible as qualifying knit fabric
                    because the fabric or knit-to-shape components contain
                    yarns not wholly formed in the United States shall not
                    be ineligible as qualifying knit fabric if the total
                    weight of all such yarns is not more than 10 percent of
                    the total weight of the fabric or knit-to-shape
                    components; and
                        ``(III) fabric or knit-to-shape components
                    otherwise eligible as qualifying knit fabric shall not
                    be ineligible as qualifying knit fabric because the
                    fabric or knit-to-shape components contain yarns
                    covered by clause (i) or (ii) of paragraph (5)(A).

                ``(C) Review by united states government accountability
            office.--The United States Government Accountability Office
            shall review the program established under subparagraph (B)
            annually for the purpose of evaluating the effectiveness of,
            and making recommendations for improvements in, the program.
                ``(D) Enforcement provisions.--
                    ``(i) Fraudulent claims of preference.--Any person who
                makes a false claim for preference under the program
                established under subparagraph (B) shall be subject to any
                applicable civil or criminal penalty that may be imposed
                under the customs laws of the United States or under title
                18, United States Code.
                    ``(ii) Penalties for other fraudulent information.--The
                Secretary of Commerce may establish and impose penalties
                for the submission to the Secretary of Commerce of
                fraudulent information under the program established under
                subparagraph (B), other than a claim described in clause
                (i).''.
        (e) Short Supply Rules .--Section 213A(b) of the Caribbean Basin
    Economic Recovery Act is amended by adding at the end the following:
            ``(5) Short supply provision.--
                ``(A) In general.--Any apparel article that is wholly
            assembled, or knit-to-shape, in Haiti from any combination of
            fabrics, fabric components, components knit-to-shape, or yarns
            and is imported directly from Haiti or the Dominican Republic
            shall enter the United States free of duty, without regard to
            the source of the fabrics, fabric components, components knit-
            to-shape, or yarns from which the article is made, if the
            fabrics, fabric components, components knit-to-shape, or yarns
            comprising the component that determines the tariff
            classification of the article are of any of the following:
                    ``(i) Fabrics or yarns, to the extent that apparel
                articles of such fabrics or yarns would be eligible for
                preferential treatment, without regard to the source of the
                fabrics or yarns, under Annex 401 of the NAFTA.
                    ``(ii) Fabrics or yarns, to the extent that such
                fabrics or yarns are designated as not being available in
                commercial quantities for purposes of--

                        ``(I) section 213(b)(2)(A)(v) of this Act;
                        ``(II) section 112(b)(5) of the African Growth and
                    Opportunity Act;
                        ``(III) clause (i)(III) or (ii) of section
                    204(b)(3)(B) of the Andean Trade Preference Act; or
                        ``(IV) any other provision, relating to determining
                    whether a textile or apparel article is an originating
                    good eligible for preferential treatment, of a law that
                    implements a free trade agreement entered into by the
                    United States that is in effect at the time the claim
                    for preferential treatment is made.

                ``(B) Removal of designation of fabrics or yarns not
            available in commercial quantities.--If the President
            determines that--
                    ``(i) any fabric or yarn described in clause (i) of
                subparagraph (A) was determined to be eligible for
                preferential treatment, or
                    ``(ii) any fabric or yarn described in clause (ii) of
                subparagraph (A) was designated as not being available in
                commercial quantities,
            on the basis of fraud, the President is authorized to remove
            the eligibility or designation (as the case may be) of that
            fabric or yarn with respect to articles entered after such
            removal.''.
        (f) Miscellaneous Provisions.--
            (1) Relationship to other preferential programs.--Section
        213A(b) of the Caribbean Basin Economic Recovery Act is amended by
        adding at the end the following:
            ``(6) Other preferential treatment not affected.--The duty-free
        treatment provided under this subsection is in addition to any
        other preferential treatment under this title.''.
            (2) Definitions.--Section 213A(a) of the Caribbean Basin
        Economic Recovery Act (19 U.S.C. 2703a(a)) is amended by adding at
        the end the following:
            ``(3) Imported directly from haiti or the dominican republic.--
        Articles are `imported directly from Haiti or the Dominican
        Republic' if--
                ``(A) the articles are shipped directly from Haiti or the
            Dominican Republic into the United States without passing
            through the territory of any intermediate country; or
                ``(B) the articles are shipped from Haiti or the Dominican
            Republic into the United States through the territory of an
            intermediate country, and--
                    ``(i) the articles in the shipment do not enter into
                the commerce of any intermediate country, and the invoices,
                bills of lading, and other shipping documents specify the
                United States as the final destination; or
                    ``(ii) the invoices and other documents do not specify
                the United States as the final destination, but the
                articles in the shipment--

                        ``(I) remain under the control of the customs
                    authority in the intermediate country;
                        ``(II) do not enter into the commerce of the
                    intermediate country except for the purpose of a sale
                    other than at retail; and
                        ``(III) have not been subjected to operations in
                    the intermediate country other than loading, unloading,
                    or other activities necessary to preserve the articles
                    in good condition.

            ``(4) Knit-to-shape.--A good is `knit-to-shape' if 50 percent
        or more of the exterior surface area of the good is formed by major
        parts that have been knitted or crocheted directly to the shape
        used in the good, with no consideration being given to patch
        pockets, appliques, or the like. Minor cutting, trimming, or sewing
        of those major parts shall not affect the determination of whether
        a good is `knit-to-shape.'
            ``(5) Wholly assembled.--A good is `wholly assembled' in Haiti
        if all components, of which there must be at least two, pre-existed
        in essentially the same condition as found in the finished good and
        were combined to form the finished good in Haiti. Minor attachments
        and minor embellishments (for example, appliques, beads, spangles,
        embroidery, and buttons) not appreciably affecting the identity of
        the good, and minor subassemblies (for example, collars, cuffs,
        plackets, and pockets), shall not affect the determination of
        whether a good is `wholly assembled' in Haiti.''.
        (g) Termination.--Section 213A of the Caribbean Basin Economic
    Recovery Act (19 U.S.C. 2703a) is amended by adding at the end the
    following new subsection:
        ``(g) Termination.--Except as provided in subsection (b)(1), the
    duty-free treatment provided under this section shall remain in effect
    until September 30, 2018.''.
        (h) Conforming Amendments.--Subsection (e)(1) of section 213A of
    the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703a(e)(1)) is
    amended by striking ``the Bureau of Customs and Border Protection''
    each place it appears and inserting ``U.S. Customs and Border
    Protection''.
    SEC. 15403. LABOR OMBUDSMAN AND TECHNICAL ASSISTANCE IMPROVEMENT AND
    COMPLIANCE NEEDS ASSESSMENT AND REMEDIATION PROGRAM.
        Section 213A of the Caribbean Basin Economic Recovery Act (19
    U.S.C. 2703a), as amended by section 15402 of this Act, is amended--
            (1) in subsection (a)--
                (A) by redesignating paragraph (5) as paragraph (8):
                (B) by redesignating paragraphs (2) through (4) as
            paragraphs (4) through (6), respectively;
                (C) by inserting after paragraph (1) the following new
            paragraphs:
            ``(2) Appropriate congressional committees.--. The term
        ``appropriate congressional committees'' means the Committee on
        Finance of the Senate and the Committee on Ways and Means of the
        House of Representatives.
            ``(3) Core labor standards.--The term ``core labor standards''
        means--
                ``(A) freedom of association;
                ``(B) the effective recognition of the right to bargain
            collectively;
                ``(C) the elimination of all forms of compulsory or forced
            labor;
                ``(D) the effective abolition of child labor and a
            prohibition on the worst forms of child labor; and
                ``(E) the elimination of discrimination in respect of
            employment and occupation.''; and
                (D) by inserting after paragraph (6) (as redesignated) the
            following new paragraph:
            ``(7) TAICNAR program.--The term `TAICNAR Program' means the
        Technical Assistance Improvement and Compliance Needs Assessment
        and Remediation Program established pursuant to subsection (e).'';
            (2) by redesignating subsections (e), (f), and (g) as
        subsections (f), (g), and (h), respectively; and
            (3) by inserting after subsection (d) the following new
        subsection:
        ``(e) Technical Assistance Improvement and Compliance Needs
    Assessment and Remediation Program.--
            ``(1) Continued eligibility for preferences.--
                ``(A) Presidential certification of compliance by haiti
            with requirements.--Upon the expiration of the 16-month period
            beginning on the date of the enactment of the Haitian
            Hemispheric Opportunity through Partnership Encouragement Act
            of 2008, Haiti shall continue to be eligible for the
            preferential treatment provided under subsection (b) only if
            the President determines and certifies to the Congress that--
                    ``(i) Haiti has implemented the requirements set forth
                in paragraphs (2) and (3); and
                    ``(ii) Haiti has agreed to require producers of
                articles for which duty-free treatment may be requested
                under subsection (b) to participate in the TAICNAR Program
                described in paragraph (3) and has developed a system to
                ensure participation in such program by such producers,
                including by developing and maintaining the registry
                described in paragraph (2)(B)(i).
                ``(B) Extension.--The President may extend the period for
            compliance by Haiti under subparagraph (A) if the President--
                    ``(i) determines that Haiti has made a good faith
                effort toward such compliance and has agreed to take
                additional steps to come into full compliance that are
                satisfactory to the President; and
                    ``(ii) provides to the appropriate congressional
                committees, not later than 6 months after the last day of
                the 16-month period specified in subparagraph (A), and
                every 6 months thereafter, a report identifying the steps
                that Haiti has agreed to take to come into full compliance
                and the progress made over the preceding 6-month period in
                implementing such steps.
                ``(C) Continuing compliance.--
                    ``(i) Termination of preferential treatment.--If, after
                making a certification under subparagraph (A), the
                President determines that Haiti is no longer meeting the
                requirements set forth in subparagraph (A), the President
                shall terminate the preferential treatment provided under
                subsection (b), unless the President determines, after
                consulting with the appropriate congressional committees,
                that meeting such requirements is not practicable because
                of extraordinary circumstances existing in Haiti when the
                determination is made.
                    ``(ii) Subsequent compliance.--If the President, after
                terminating preferential treatment under clause (i),
                determines that Haiti is meeting the requirements set forth
                in subparagraph (A), the President shall reinstate the
                application of preferential treatment under subsection (b).
            ``(2) Labor ombudsman.--
                ``(A) In general.--The requirement under this paragraph is
            that Haiti has established an independent Labor Ombudsman's
            Office within the national government that--
                    ``(i) reports directly to the President of Haiti;
                    ``(ii) is headed by a Labor Ombudsman chosen by the
                President of Haiti, in consultation with Haitian labor
                unions and industry associations; and
                    ``(iii) is vested with the authority to perform the
                functions described in subparagraph (B).
                ``(B) Functions.--The functions of the Labor Ombudsman's
            Office shall include--
                    ``(i) developing and maintaining a registry of
                producers of articles for which duty-free treatment may be
                requested under subsection (b), and developing, in
                consultation and coordination with any other appropriate
                officials of the Government of Haiti, a system to ensure
                participation by such producers in the TAICNAR Program
                described in paragraph (3);
                    ``(ii) overseeing the implementation of the TAICNAR
                Program described in paragraph (3);
                    ``(iii) receiving and investigating comments from any
                interested party regarding the conditions described in
                paragraph (3)(B) in facilities of producers listed in the
                registry described in clause (i) and, where appropriate,
                referring such comments or the result of such
                investigations to the appropriate Haitian authorities, or
                to the entity operating the TAICNAR Program described in
                paragraph (3);
                    ``(iv) assisting, in consultation and coordination with
                any other appropriate Haitian authorities, producers listed
                in the registry described in clause (i) in meeting the
                conditions set forth in paragraph (3)(B); and
                    ``(v) coordinating, with the assistance of the entity
                operating the TAICNAR Program described in paragraph (3), a
                tripartite committee comprised of appropriate
                representatives of government agencies, employers, and
                workers, as well as other relevant interested parties, for
                the purposes of evaluating progress in implementing the
                TAICNAR Program described in paragraph (3), and consulting
                on improving core labor standards and working conditions in
                the textile and apparel sector in Haiti, and on other
                matters of common concern relating to such core labor
                standards and working conditions.
            ``(3) Technical assistance improvement and compliance needs
        assessment and remediation program.--
                ``(A) In general.--The requirement under this paragraph is
            that Haiti, in cooperation with the International Labor
            Organization, has established a Technical Assistance
            Improvement and Compliance Needs Assessment and Remediation
            Program meeting the requirements under subparagraph (C)--
                    ``(i) to assess compliance by producers listed in the
                registry described in paragraph (2)(B)(i) with the
                conditions set forth in subparagraph (B) and to assist such
                producers in meeting such conditions; and
                    ``(ii) to provide assistance to improve the capacity of
                the Government of Haiti--

                        ``(I) to inspect facilities of producers listed in
                    the registry described in paragraph (2)(B)(i); and
                        ``(II) to enforce national labor laws and resolve
                    labor disputes, including through measures described in
                    subparagraph (E).

                ``(B) Conditions described.--The conditions referred to in
            subparagraph (A) are--
                    ``(i) compliance with core labor standards; and
                    ``(ii) compliance with the labor laws of Haiti that
                relate directly to core labor standards and to ensuring
                acceptable conditions of work with respect to minimum
                wages, hours of work, and occupational health and safety.
                ``(C) Requirements.--The requirements for the TAICNAR
            Program are that the program--
                    ``(i) be operated by the International Labor
                Organization (or any subdivision, instrumentality, or
                designee thereof), which prepares the biannual reports
                described in subparagraph (D);
                    ``(ii) be developed through a participatory process
                that includes the Labor Ombudsman described in paragraph
                (2) and appropriate representatives of government agencies,
                employers, and workers;
                    ``(iii) assess compliance by each producer listed in
                the registry described in paragraph (2)(B)(i) with the
                conditions set forth in subparagraph (B) and identify any
                deficiencies by such producer with respect to meeting such
                conditions, including by--

                        ``(I) conducting unannounced site visits to
                    manufacturing facilities of the producer;
                        ``(II) conducting confidential interviews
                    separately with workers and management of the
                    facilities of the producer;
                        ``(III) providing to management and workers, and
                    where applicable, worker organizations in the
                    facilities of the producer, on a confidential basis--

                            ``(aa) the results of the assessment carried
                        out under this clause; and
                            ``(bb) specific suggestions for remediating any
                        such deficiencies;
                    ``(iv) assist the producer in remediating any
                deficiencies identified under clause (iii);
                    ``(v) conduct prompt follow-up site visits to the
                facilities of the producer to assess progress on
                remediation of any deficiencies identified under clause
                (iii); and
                    ``(vi) provide training to workers and management of
                the producer, and where appropriate, to other persons or
                entities, to promote compliance with subparagraph (B).
                ``(D) Biannual report.--The biannual reports referred to in
            subparagraph (C)(i) are a report, by the entity operating the
            TAICNAR Program, that is published (and available to the public
            in a readily accessible manner) on a biannual basis, beginning
            6 months after Haiti implements the TAICNAR Program under this
            paragraph, covering the preceding 6-month period, and that
            includes the following:
                    ``(i) The name of each producer listed in the registry
                described in paragraph (2)(B)(i) that has been identified
                as having met the conditions under subparagraph (B).
                    ``(ii) The name of each producer listed in the registry
                described in paragraph (2)(B)(i) that has been identified
                as having deficiencies with respect to the conditions under
                subparagraph (B), and has failed to remedy such
                deficiencies.
                    ``(iii) For each producer listed under clause (ii)--

                        ``(I) a description of the deficiencies found to
                    exist and the specific suggestions for remediating such
                    deficiencies made by the entity operating the TAICNAR
                    Program;
                        ``(II) a description of the efforts by the producer
                    to remediate the deficiencies, including a description
                    of assistance provided by any entity to assist in such
                    remediation; and
                        ``(III) with respect to deficiencies that have not
                    been remediated, the amount of time that has elapsed
                    since the deficiencies were first identified in a
                    report under this subparagraph.

                    ``(iv) For each producer identified as having
                deficiencies with respect to the conditions described under
                subparagraph (B) in a prior report under this subparagraph,
                a description of the progress made in remediating such
                deficiencies since the submission of the prior report, and
                an assessment of whether any aspect of such deficiencies
                persists.
                ``(E) Capacity building.--The assistance to the Government
            of Haiti referred to in subparagraph (A)(ii) shall include
            programs--
                    ``(i) to review the labor laws and regulations of Haiti
                and to develop and implement strategies for bringing the
                laws and regulations into conformity with core labor
                standards;
                    ``(ii) to develop additional strategies for
                facilitating protection of core labor standards and
                providing acceptable conditions of work with respect to
                minimum wages, hours of work, and occupational safety and
                health, including through legal, regulatory, and
                institutional reform;
                    ``(iii) to increase awareness of worker rights,
                including under core labor standards and national labor
                laws;
                    ``(iv) to promote consultation and cooperation between
                government representatives, employers, worker
                representatives, and United States importers on matters
                relating to core labor standards and national labor laws;
                    ``(v) to assist the Labor Ombudsman appointed pursuant
                to paragraph (2) in establishing and coordinating operation
                of the committee described in paragraph (2)(B)(v);
                    ``(vi) to assist worker representatives in more fully
                and effectively advocating on behalf of their members; and
                    ``(vii) to provide on-the-job training and technical
                assistance to labor inspectors, judicial officers, and
                other relevant personnel to build their capacity to enforce
                national labor laws and resolve labor disputes.
            ``(4) Compliance with eligibility criteria.--
                ``(A) Country compliance with worker rights eligibility
            criteria.--In making a determination of whether Haiti is
            meeting the requirement set forth in subsection (d)(1)(A)(vi)
            relating to internationally recognized worker rights, the
            President shall consider the reports produced under paragraph
            (3)(D).
                ``(B) Producer eligibility.--
                    ``(i) Identification of producers.--Beginning in the
                second calendar year after the President makes the
                certification under paragraph (1)(A), the President shall
                identify on a biennial basis whether a producer listed in
                the registry described in paragraph (2)(B)(i) has failed to
                comply with core labor standards and with the labor laws of
                Haiti that directly relate to and are consistent with core
                labor standards.
                    ``(ii) Assistance to producers; withdrawal, etc., of
                preferential treatment.--For each producer that the
                President identifies under clause (i), the President shall
                seek to assist such producer in coming into compliance with
                core labor standards and with the labor laws of Haiti that
                directly relate to and are consistent with core labor
                standards. If such efforts fail, the President shall
                withdraw, suspend, or limit the application of preferential
                treatment under subsection (b) to articles of such
                producer.
                    ``(iii) Reinstating preferential treatment.--If the
                President, after withdrawing, suspending, or limiting the
                application of preferential treatment under clause (ii) to
                articles of a producer, determines that such producer is
                complying with core labor standards and with the labor laws
                of Haiti that directly relate to and are consistent with
                core labor standards, the President shall reinstate the
                application of preferential treatment under subsection (b)
                to the articles of the producer.
                    ``(iv) Consideration of reports.--In making the
                identification under clause (i) and the determination under
                clause (iii), the President shall consider the reports made
                available under paragraph (3)(D).
            ``(5) Reports by the president.--
                ``(A) In general.--Not later than one year after the date
            of the enactment of the Haitian Hemispheric Opportunity through
            Partnership Encouragement Act of 2008, and annually thereafter,
            the President shall transmit to the appropriate congressional
            committees a report on the implementation of this subsection
            during the preceding 1-year period.
                ``(B) Matters to be included.--Each report required by
            subparagraph (A) shall include the following:
                    ``(i) An explanation of the efforts of Haiti, the
                President, and the International Labor Organization to
                carry out this subsection.
                    ``(ii) A summary of each report produced under
                paragraph (3)(D) during the preceding 1-year period and a
                summary of the findings contained in such report.
                    ``(iii) Identifications made under paragraph (4)(B)(i)
                and determinations made under paragraph (4)(B)(iii).
            ``(6) Authorization of appropriations.--There is authorized to
        be appropriated to carry out this subsection the sum of $10,000,000
        for the period beginning on October 1, 2008, and ending on
        September 30, 2013.''.
    SEC. 15404. PETITION PROCESS.
        Section 213A(d) of the Caribbean Basin Economic Recovery Act (19
    U.S.C. 2703A(d)) is amended by adding at the end the following new
    paragraph:
            ``(4) Petition process.--Any interested party may file a
        request to have the status of Haiti reviewed with respect to the
        eligibility requirements listed in paragraph (1), and the President
        shall provide for this purpose the same procedures as those that
        are provided for reviewing the status of eligible beneficiary
        developing countries with respect to the designation criteria
        listed in subsections (b) and (c) of section 502 of the Trade Act
        of 1974 (19 U.S.C. 2642 (b) and (c)).''.
    SEC. 15405. CONDITIONS REGARDING ENFORCEMENT OF CIRCUMVENTION.
        Section 213A(f) of the Caribbean Basin Economic Recovery Act, as
    redesignated by section 15403(2) of this Act, is amended by adding at
    the end the following new paragraph:
            ``(3) Limitation on goods shipped from the dominican
        republic.--
                ``(A) Limitation.--Notwithstanding subsection (a)(5),
            relating to the definition of `imported directly from Haiti or
            the Dominican Republic', articles described in subsection (b)
            that are shipped from the Dominican Republic, directly or
            through the territory of an intermediate country, whether or
            not such articles undergo processing in the Dominican Republic,
            shall not be considered to be `imported directly from Haiti or
            the Dominican Republic' until the President certifies to the
            Congress that Haiti and the Dominican Republic have developed
            procedures to prevent unlawful transshipment of the articles
            and the use of counterfeit documents related to the importation
            of the articles into the United States.
                ``(B) Technical and other assistance.--The Commissioner
            responsible for U.S. Customs and Border Protection shall
            provide technical and other assistance to Haiti and the
            Dominican Republic to develop expeditiously the procedures
            described in subparagraph (A).''.
    SEC. 15406. PRESIDENTIAL PROCLAMATION AUTHORITY.
        The President may exercise the authority under section 604 of the
    Trade Act of 1974 to proclaim such modifications to the Harmonized
    Tariff Schedule of the United States as may be necessary to carry out
    this part and the amendments made by this part.
    SEC. 15407. REGULATIONS AND PROCEDURES.
        The President shall issue such regulations as may be necessary to
    carry out the amendments made by sections 15402, 15403, and 15404.
    Regulations to carry out the amendments made by section 15402 shall be
    issued not later than September 30, 2008. The Secretary of Commerce
    shall issue such procedures as may be necessary to carry out the
    amendment made by section 15402(d) not later than September 30, 2008.
    SEC. 15408. EXTENSION OF CBTPA.
        Section 213(b) of the Caribbean Basin Economic Recovery Act (19
    U.S.C. 2703(b)) is amended--
            (1) in paragraph (2)(A)--
                (A) in clause (iii)--
                    (i) in subclause (II)(cc), by striking ``2008'' and
                inserting ``2010''; and
                    (ii) in subclause (IV)(dd), by striking ``2008'' and
                inserting ``2010''; and
                (B) in clause (iv)(II), by striking ``6'' and inserting
            ``8''; and
            (2) in paragraph (5)(D)--
                (A) in clause (i), by striking ``2008'' and inserting
            ``2010''; and
                (B) in clause (ii), by striking ``108(b)(5)'' and inserting
            ``section 108(b)(5)''.
    SEC. 15409. SENSE OF CONGRESS ON INTERPRETATION OF TEXTILE AND APPAREL
    PROVISIONS FOR HAITI.
        It is the sense of the Congress that the executive branch,
    particularly the Committee for the Implementation of Textile Agreements
    (CITA), U.S. Customs and Border Protection of the Department of
    Homeland Security, and the Department of Commerce, should interpret,
    implement, and enforce the provisions of section 213A(b) of the
    Caribbean Basin Economic Recovery Act, as amended by section 15402 of
    this Act, relating to preferential treatment of textile and apparel
    articles, broadly in order to expand trade by maximizing opportunities
    for imports of articles eligible for preferential treatment under such
    section 213A(b).
    SEC. 15410. SENSE OF CONGRESS ON TRADE MISSION TO HAITI.
        It is the sense of the Congress that the Secretary of Commerce, in
    coordination with the United States Trade Representative, the Secretary
    of State, and the Commissioner responsible for U.S. Customs and Border
    Protection of the Department of Homeland Security, should lead a trade
    mission to Haiti, within 6 months after the date of the enactment of
    this Act, to promote trade between the United States and Haiti, to
    promote new economic opportunities afforded under the amendments made
    by section 15402 of this Act, and to help educate United States and
    Haitian business concerns about such opportunities.
    SEC. 15411. SENSE OF CONGRESS ON VISA SYSTEMS.
        It is the sense of the Congress that Haiti, and other countries
    that receive preferences under trade preference programs of the United
    States that require effective visa systems to prevent transshipment,
    should ensure that monetary compensation for such visas is not required
    beyond the costs of processing the visa, including ensuring that such
    monetary compensation does not violate an applicable system to combat
    corruption and bribery.
    SEC. 15412. EFFECTIVE DATE.
        (a) In General.--Except as provided in subsection (b), this part
    and the amendments made by this part shall take effect on the date of
    the enactment of this Act.
        (b) Exception.--The amendments made by section 15402 shall take
    effect on October 1, 2008, and shall apply to articles entered, or
    withdrawn from warehouse for consumption, on or after that date.

                    PART II--MISCELLANEOUS TRADE PROVISIONS

    SEC. 15421. UNUSED MERCHANDISE DRAWBACK.
        (a) In General.--Section 313(j)(2) of the Tariff Act of 1930 (19
    U.S.C. 1313(j)(2)) is amended by adding at the end the following: ``For
    purposes of subparagraph (A) of this paragraph, wine of the same color
    having a price variation not to exceed 50 percent between the imported
    wine and the exported wine shall be deemed to be commercially
    interchangeable.''.
        (b) Effective Date.--The amendment made by subsection (a) shall
    apply with respect to claims filed for drawback under section 313(j)(2)
    of the Tariff Act of 1930 on or after the date of the enactment of this
    Act.
    SEC. 15422. REQUIREMENTS RELATING TO DETERMINATION OF TRANSACTION VALUE
    OF IMPORTED MERCHANDISE.
        (a) Requirement on Importers.--
            (1) In general.--Pursuant to sections 484 and 485 of the Tariff
        Act of 1930 (19 U.S.C. 1484 and 1485), the Commissioner responsible
        for U.S. Customs and Border Protection shall require each importer
        of merchandise to provide to U.S. Customs and Border Protection at
        the time of entry of the merchandise the information described in
        paragraph (2).
            (2) Information required.--The information referred to in
        paragraph (1) is a declaration as to whether the transaction value
        of the imported merchandise is determined on the basis of the price
        paid by the buyer in the first or earlier sale occurring prior to
        introduction of the merchandise into the United States.
            (3) Effective date.--The requirement to provide information
        under this subsection shall be effective for the 1-year period
        beginning 90 days after the date of the enactment of this Act.
        (b) Report to International Trade Commission.--
            (1) In general.--The Commissioner responsible for U.S. Customs
        and Border Protection shall submit to the United States
        International Trade Commission on a monthly basis for the 1-year
        period specified in subsection (a)(3) a report on the information
        provided by importers under subsection (a)(2) during the preceding
        month. The report required under this paragraph shall be submitted
        in a form agreed upon between U.S. Customs and Border Protection
        and the United States International Trade Commission.
            (2) Matters to be included.--The report required under
        paragraph (1) shall include--
                (A) the number of importers that declare the transaction
            value of the imported merchandise is determined on the basis of
            the method described in subsection (a)(2);
                (B) the tariff classification of such imported merchandise
            under the Harmonized Tariff Schedule of the United States; and
                (C) the transaction value of such imported merchandise.
        (c) Report to Congress.--
            (1) In general.--Not later than 90 days after the submission of
        the final report under subsection (b), the United States
        International Trade Commission shall submit to the appropriate
        congressional committees a report on the information contained in
        all reports submitted under subsection (b).
            (2) Matters to be included.--The report required under
        paragraph (1) shall include--
                (A) the aggregate number of importers that declare the
            transaction value of the imported merchandise is determined on
            the basis of the method described in subsection (a)(2),
            including a description of the frequency of the use of such
            method;
                (B) the tariff classification of such imported merchandise
            under the Harmonized Tariff Schedule of the United States on an
            aggregate basis, including an analysis of the tariff
            classification of such imported merchandise on a sectoral
            basis;
                (C) the aggregate transaction value of such imported
            merchandise, including an analysis of the transaction value of
            such imported merchandise on a sectoral basis; and
                (D) the aggregate transaction value of all merchandise
            imported into the United States during the 1-year period
            specified in subsection (a)(3).
        (d) Sense of Congress Regarding Prohibition on Proposed
    Interpretation of the Term ``Sold for Exportation to the United
    States''.--
            (1) In general.--It is the sense of Congress that the
        Commissioner responsible for U.S. Customs and Border Protection
        should not implement a change to U.S. Customs and Border
        Protection's interpretation (as such interpretation is in effect on
        the date of the enactment of this Act) of the term ``sold for
        exportation to the United States'', as described in section 402(b)
        of the Tariff Act of 1930 (19 U.S.C. 1401a(b)), for purposes of
        applying the transaction value of the imported merchandise in a
        series of sales, before January 1, 2011.
            (2) Exception.--It is the sense of Congress that beginning on
        January 1, 2011, the Commissioner responsible for U.S. Customs and
        Border Protection may propose to change or change U.S. Customs and
        Border Protection's interpretation of the term ``sold for
        exportation to the United States'', as described in paragraph (1),
        only if U.S. Customs and Border Protection--
                (A) consults with, and provides notice to, the appropriate
            congressional committees--
                    (i) not less than 180 days prior to proposing a change;
                and
                    (ii) not less than 90 days prior to publishing a
                change;
                (B) consults with, provides notice to, and takes into
            consideration views expressed by, the Commercial Operations
            Advisory Committee--
                    (i) not less than 120 days prior to proposing a change;
                and
                    (ii) not less than 60 days prior to publishing a
                change; and
                (C) receives the explicit approval of the Secretary of the
            Treasury prior to publishing a change.
            (3) Consideration of international trade commission report.--It
        is the sense of Congress that prior to publishing a change to U.S.
        Customs and Border Protection's interpretation (as such
        interpretation is in effect on the date of the enactment of this
        Act) of the term ``sold for exportation to the United States'', as
        described in section 402(b) of the Tariff Act of 1930 (19 U.S.C.
        1401a(b)), for purposes of applying the transaction value of the
        imported merchandise in a series of sales, the Commissioner
        responsible for U.S. Customs and Border Protection should take into
        consideration the matters included in the report prepared by the
        United States International Trade Commission under subsection (c).
        (e) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term
        ``appropriate congressional committees'' means the Committee on
        Ways and Means of the House of Representatives and the Committee on
        Finance of the Senate.
            (2) Commercial operations advisory committee.--The term
        ``Commercial Operations Advisory Committee'' means the Advisory
        Committee established pursuant to section 9503(c) of the Omnibus
        Budget Reconciliation Act of 1987 (19 U.S.C. 2071 note) or any
        successor committee.
            (3) Importer.--The term ``importer'' means one of the parties
        qualifying as an ``importer of record'' under section 484(a)(2)(B)
        in the Tariff Act of 1930 (19 U.S.C. 1484(a)(2)(B)).

        (4) Transaction value of the imported merchandise.--The term
        ``transaction value of the imported merchandise'' has the meaning
        described in section 402(b) of the Tariff Act of 1930 (19 U.S.C.
        1401a(b)).

                                   Speaker of the House of Representatives.

                                Vice President of the United States and
                                                   President of the Senate.