[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.