[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2419 Placed on Calendar Senate (PCS)]
Calendar No. 339
110th CONGRESS
1st Session
H. R. 2419
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 4, 2007
Received and read the first time
September 5, 2007
Read the second time and placed on the calendar
_______________________________________________________________________
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 AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Farm, Nutrition,
and Bioenergy Act of 2007''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
TITLE I--COMMODITY PROGRAMS
Sec. 1001. Definitions.
Subtitle A--Direct Payments and Counter-Cyclical Payments
Sec. 1101. Adjustments to base acres.
Sec. 1102. Availability of direct payments.
Sec. 1103. Availability of counter-cyclical payments.
Sec. 1104. Availability of revenue-based counter-cyclical payments.
Sec. 1105. Producer agreement required as condition of provision of
direct payments and counter-cyclical
payments.
Sec. 1106. Planting flexibility.
Sec. 1107. 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. Deadline for repayment of marketing assistance loan for
peanuts.
Sec. 1211. Commodity quality incentive payments for healthy oilseeds.
Subtitle C--Sugar
Sec. 1301. Sugar program.
Sec. 1302. United States membership in the international sugar
organization.
Sec. 1303. Flexible marketing allotments for sugar.
Subtitle D--Dairy-Related Provisions
Sec. 1401. Dairy product price support program.
Sec. 1402. Dairy forward pricing program.
Sec. 1403. Dairy export incentive program.
Sec. 1404. Revision of Federal marketing order amendment procedures.
Sec. 1405. Dairy indemnity program.
Sec. 1406. Extension of milk income loss contract program.
Sec. 1407. Dairy promotion and research program.
Sec. 1408. Report on Department of Agriculture reporting procedures for
nonfat dry milk.
Sec. 1409. Federal Milk Marketing Order Review Commission.
Subtitle E--Administration
Sec. 1501. Administration generally.
Sec. 1502. Suspension of permanent price support authority.
Sec. 1503. Payment Limitations.
Sec. 1504. Adjusted gross income limitation.
Sec. 1505. Adjustments of loans.
Sec. 1506. Personal liability of producers for deficiencies.
Sec. 1507. Extension of existing administrative authority regarding
loans.
Sec. 1508. Assignment of payments.
Sec. 1509. Tracking of benefits.
Sec. 1510. Upland cotton storage payments.
Sec. 1511. Government publication of cotton price forecasts.
Sec. 1512. Prevention of deceased persons receiving payments under farm
commodity programs.
TITLE II--CONSERVATION
Subtitle A--Conservation Programs of the Food Security Act of 1985
Sec. 2101. Conservation reserve program.
Sec. 2102. Wetlands reserve program.
Sec. 2103. Conservation security program.
Sec. 2104. Grassland reserve program.
Sec. 2105. Environmental quality incentives program.
Sec. 2106. Regional water enhancement program.
Sec. 2107. Grassroots source water protection program.
Sec. 2108. Conservation of private grazing land.
Sec. 2109. Great Lakes basin program for soil erosion and sediment
control.
Sec. 2110. Farm and ranchland protection program.
Sec. 2111. Farm viability program.
Sec. 2112. Wildlife habitat incentive program.
Subtitle B--Conservation Programs Under Other Laws
Sec. 2201. Agricultural management assistance program.
Sec. 2202. Resource Conservation and Development Program.
Sec. 2203. Small watershed rehabilitation program.
Subtitle C--Additional Conservation Programs
Sec. 2301. Chesapeake Bay program for nutrient reduction and sediment
control.
Sec. 2302. Voluntary public access and habitat incentive program.
Sec. 2303. Muck soils conservation.
Subtitle D--Administration and Funding
Sec. 2401. Funding of conservation programs under Food Security Act of
1985.
Sec. 2402. Improved provision of technical assistance under
conservation programs.
Sec. 2403. Cooperative conservation partnership initiative.
Sec. 2404. Regional equity and flexibility.
Sec. 2405. Administrative requirements for conservation programs.
Sec. 2406. Annual report on participation by specialty crop producers
in conservation programs.
Sec. 2407. Promotion of market-based approaches to conservation.
Sec. 2408. Establishment of State technical committees and their
responsibilities.
Sec. 2409. Payment limitations.
Subtitle E--Miscellaneous Provisions
Sec. 2501. Inclusion of income from affiliated packing and handling
operations as income derived from farming
for application of adjusted gross income
limitation on eligibility for conservation
programs.
Sec. 2502. Encouragement of voluntary sustainability practices
guidelines.
Sec. 2503. Farmland resource information.
Sec. 2504. Pilot program for four-year crop rotation for peanuts.
TITLE III--TRADE
Sec. 3001. Agricultural Trade Development and Assistance Act of 1954.
Sec. 3002. Export credit guarantee program.
Sec. 3003. Market access program.
Sec. 3004. Food for Progress Act of 1985.
Sec. 3005. Reauthorization of McGovern-Dole International Food for
Education and Child Nutrition Program.
Sec. 3006. Bill Emerson Humanitarian Trust.
Sec. 3007. Technical assistance for specialty crops.
Sec. 3008. Technical assistance for the resolution of trade disputes.
Sec. 3009. Representation by the United States at international
standard-setting bodies.
Sec. 3010. Foreign market development cooperator program.
Sec. 3011. Emerging markets.
Sec. 3012. Export Enhancement Program.
Sec. 3013. Minimum level of nonemergency food assistance.
Sec. 3014. Germplasm conservation.
Sec. 3015. Report on efforts to improve procurement planning.
Sec. 3016. International disaster assistance under the Foreign
Assistance Act of 1961.
TITLE IV--NUTRITION PROGRAMS
Subtitle A--Food Stamp Program
Sec. 4001. Renaming the food stamp program.
Sec. 4002. Definition of drug addiction or alcoholic treatment and
rehabilitation program.
Sec. 4003. Nutrition education.
Sec. 4004. Food distribution on Indian reservations.
Sec. 4005. Excluding combat related pay from countable income.
Sec. 4006. Increasing the standard deduction.
Sec. 4007. Excluding dependent care expenses.
Sec. 4008. Adjusting countable resources for inflation.
Sec. 4009. Excluding education accounts from countable income.
Sec. 4010. Excluding retirement accounts from countable income.
Sec. 4011. Deobligate food stamp coupons.
Sec. 4012. Allow for the accrual of benefits.
Sec. 4013. Increasing the minimum benefit.
Sec. 4014. State option for telephonic signature.
Sec. 4015. Review of major changes in program design.
Sec. 4016. Grants for simple application and eligibility determination
systems and improved access to benefits.
Sec. 4017. Civil money penalties and disqualification of retail food
stores and wholesale food concerns.
Sec. 4018. Major systems failures.
Sec. 4019. Funding of employment and training programs.
Sec. 4020. Reductions in payments for administrative costs.
Sec. 4021. Cash payment pilot projects.
Sec. 4022. Findings of Congress regarding Secure Supplemental Nutrition
Assistance program nutrition education.
Sec. 4023. Nutrition education and promotion initiative to address
obesity.
Sec. 4024. Authorization of appropriations.
Sec. 4025. Consolidated block grants for Puerto Rico and American
Samoa.
Sec. 4026. Study on comparable access to Secure Supplemental Nutrition
Assistance Program benefits for Puerto
Rico.
Sec. 4027. Reauthorization of community food project competitive
grants.
Sec. 4028. Emergency food assistance program.
Subtitle B--Commodity Distribution
Sec. 4201. Authorization of appropriations.
Sec. 4202. Distribution of surplus commodities; special nutrition
projects.
Sec. 4203. Commodity distribution program.
Subtitle C--Child Nutrition and Related Programs
Sec. 4301. Purchase of fresh fruits and vegetables for distribution to
schools and service institutions.
Sec. 4302. Buy American requirements.
Sec. 4303. Expansion of fresh fruit and vegetable program.
Sec. 4304. Purchases of locally produced foods.
Subtitle D--Miscellaneous
Sec. 4401. Seniors farmers' market nutrition program.
Sec. 4402. Congressional Hunger Center.
Sec. 4403. Joint nutrition monitoring and related research activities.
Sec. 4404 Sense of the Congress.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
Sec. 5001. Conservation loan guarantee program.
Sec. 5002. Limitations on amount of ownership loans.
Sec. 5003. Down payment loan program.
Sec. 5004. Beginning farmer and rancher contract land sales program.
Sec. 5005. Loans to purchasers of highly fractioned lands.
Subtitle B--Operating Loans
Sec. 5011. Limitations on amount of operating loans.
Sec. 5012. Suspension of limitation on period for which borrowers are
eligible for guaranteed assistance.
Subtitle C--Administrative Provisions
Sec. 5021. Inventory sales preferences.
Sec. 5022. Loan fund set-asides.
Sec. 5023. Transition to private commercial or other sources of credit.
Sec. 5024. Extension of the right of first refusal to reacquire
homestead property to immediate family
members of borrower-owner.
Sec. 5025. Rural development and farm loan program activities.
Subtitle D--Farm Credit
Sec. 5031. Bank for cooperatives voting stock.
Sec. 5032. Rural utility loans.
Sec. 5033. Farm Credit System Insurance Corporation.
Sec. 5034. Risk-based capital levels.
TITLE VI--RURAL DEVELOPMENT
Sec. 6001. Definition of rural.
Sec. 6002. Water, waste disposal, and wastewater facility grants.
Sec. 6003. Rural business opportunity grants.
Sec. 6004. Rural water and wastewater circuit rider program.
Sec. 6005. Tribal college and university essential community
facilities.
Sec. 6006. Emergency and imminent community water assistance grant
program.
Sec. 6007. Water systems for rural and native villages in Alaska.
Sec. 6008. 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. 6009. Rural cooperative development grants.
Sec. 6010. Criteria to be applied in providing loans and loan
guarantees under the business and industry
loan program.
Sec. 6011. Appropriate technology transfer for rural areas program.
Sec. 6012. Grants to improve technical infrastructure and improve
quality of rural health care facilities.
Sec. 6013. Rural entrepreneur and microenterprise assistance program.
Sec. 6014. Criteria to be applied in considering applications for rural
development projects.
Sec. 6015. National sheep industry improvement center.
Sec. 6016. National rural development partnership.
Sec. 6017. Historic barn preservation.
Sec. 6018. Grants for NOAA weather radio transmitters.
Sec. 6019. Delta regional authority.
Sec. 6020. Northern great plains regional authority.
Sec. 6021. Rural strategic investment program.
Sec. 6022. Expansion of 911 access.
Sec. 6023. Access to broadband telecommunications services in rural
areas.
Sec. 6024. Community connect grant program.
Sec. 6025. Agriculture innovation center demonstration program.
Sec. 6026. Rural firefighters and emergency medical service assistance
program.
Sec. 6027. Value-added agricultural market development program.
Sec. 6028. Assistance for rural public television stations.
Sec. 6029. Telemedicine and distance learning services in rural areas.
Sec. 6030. Guarantees for bonds and notes issued for electrification or
telephone purposes.
Sec. 6031. Comprehensive rural broadband strategy.
Sec. 6032. Study of railroad issues.
TITLE VII--RESEARCH
Subtitle A--General Provisions
Sec. 7101. Definitions.
Sec. 7102. Budget submission and funding.
Sec. 7103. Additional purposes of agricultural research and extension.
Sec. 7104. National agricultural research program office.
Sec. 7105. Establishment of competitive grant programs under the
National Institute for Food and
Agriculture.
Sec. 7106. Merging of IFAFS and NRI.
Sec. 7107. Capacity building grants for ASCARR institutions.
Sec. 7108. Establishment of research laboratories for animal diseases.
Sec. 7109. Grazinglands research laboratory.
Sec. 7110. Researcher training.
Sec. 7111. Fort Reno Science Park research facility.
Sec. 7112. Assessing the nutritional composition of beef products.
Sec. 7113. Sense of Congress regarding funding for human nutrition
research.
Subtitle B--National Agricultural Research, Extension, and Teaching
Policy Act of 1977
Sec. 7201. Advisory board.
Sec. 7202. Advisory board termination.
Sec. 7203. Renewable energy committee.
Sec. 7204. Specialty crop committee report.
Sec. 7205. Inclusion of UDC in grants and fellowships for food and
agricultural sciences education.
Sec. 7206. Grants and fellowships for food and agricultural sciences
education.
Sec. 7207. Grants for research on production and marketing of alcohols
and industrial hydrocarbons from
agricultural commodities and forest
products.
Sec. 7208. Policy research centers.
Sec. 7209. Human nutrition intervention and health promotion research
program.
Sec. 7210. Pilot research program to combine medical and agricultural
research.
Sec. 7211. Nutrition education program.
Sec. 7212. Continuing animal health and disease research programs.
Sec. 7213. Cooperation among eligible institutions.
Sec. 7214. Appropriations for research on national or regional
problems.
Sec. 7215. Authorization level of extension at 1890 land-grant
colleges.
Sec. 7216. Authorization level for agricultural research at 1890 land-
grant colleges.
Sec. 7217. Grants to upgrade agriculture and food sciences facilities
at the District of Columbia Land Grant
University.
Sec. 7218. Grants to upgrade agricultural and food sciences facilities
at 1890 land-grant colleges, including
Tuskegee University.
Sec. 7219. National research and training virtual centers.
Sec. 7220. Matching funds requirement for research and extension
activities of 1890 institutions.
Sec. 7221. Hispanic-serving institutions.
Sec. 7222. Hispanic-serving agricultural colleges and universities.
Sec. 7223. International agricultural research, extension, and
education.
Sec. 7224. Competitive grants for international agricultural science
and education programs.
Sec. 7225. Limitation on indirect costs for agricultural research,
education, and extension programs.
Sec. 7226. Research equipment grants.
Sec. 7227. University research.
Sec. 7228. Extension service.
Sec. 7229. Supplemental and alternative crops.
Sec. 7230. Aquaculture Assistance Programs.
Sec. 7231. Rangeland research.
Sec. 7232. Special authorization for biosecurity planning and response.
Sec. 7233. Resident instruction and distance education grants program
for insular area institutions of higher
education.
Sec. 7234. Hispanic Serving Institutions.
Sec. 7235. Specialty crops policy research institute.
Sec. 7236. Emphasis of Human Nutrition Initiative.
Sec. 7237. Grants to upgrade agriculture and food sciences facilities
at insular area land-grant institutions.
Subtitle C--Food, Agriculture, Conservation, and Trade Act of 1990
Sec. 7301. National genetics resources program.
Sec. 7302. National agricultural weather information system.
Sec. 7303. Partnerships.
Sec. 7304. Aflatoxin research and extension.
Sec. 7305. High-priority research and extension areas.
Sec. 7306. High-priority research and extension initiatives.
Sec. 7307. Nutrient management research and extension initiative.
Sec. 7308. Agricultural telecommunications program.
Sec. 7309. Assistive technology program for farmers with disabilities.
Sec. 7310. Organic research.
Sec. 7311. National rural information center clearinghouse.
Sec. 7312. New era rural technology program.
Subtitle D--Agricultural Research, Extension, and Education Reform Act
of 1998
Sec. 7401. Partnerships for high-value agricultural product quality
research.
Sec. 7402. Precision agriculture.
Sec. 7403. Biobased products.
Sec. 7404. Thomas Jefferson initiative for crop diversification.
Sec. 7405. Integrated research, education, and extension competitive
grants program.
Sec. 7406. Fusarium graminearum grants.
Sec. 7407. Bovine Johne's disease control program.
Sec. 7408. Grants for youth organizations.
Sec. 7409. Agricultural biotechnology research and development for
developing countries.
Sec. 7410. Agricultural bioenergy and biobased products research
initiative.
Sec. 7411. Specialty crop research initiative.
Sec. 7412. Office of pest management policy.
Subtitle E--Other Laws
Sec. 7501. Critical agricultural materials act.
Sec. 7502. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7503. Agricultural experiment station Research Facilities Act.
Sec. 7504. National Agricultural Research, Extension, and Teaching
Policy Act Amendments of 1985.
Sec. 7505. Competitive, Special, and Facilities Research Grant Act
(national research initiative).
Sec. 7506. Agricultural Risk Protection Act of 2000 (carbon cycle
research).
Sec. 7507. Renewable Resources Extension Act of 1978.
Sec. 7508. National Aquaculture Act of 1980.
Sec. 7509. Construction of a Chinese Garden at the National Arboretum.
Sec. 7510. Public education regarding use of biotechnology in producing
food for human consumption.
Sec. 7511. Fresh cut produce safety grants.
Sec. 7512. UDC/EFNEP Eligibility.
Sec. 7513. Hatch Act of 1987.
Subtitle F--Additional Provisions
Sec. 7601. Merit review of extension and educational grants.
Sec. 7602. Review of plan of work requirements.
Sec. 7603. Multistate and integration funding.
Sec. 7604. Expanded food and nutrition education program.
Sec. 7605. Grants to 1890 schools to expand extension capacity.
Sec. 7606. Borlaug international agricultural science and technology
fellowship program.
Sec. 7607. Cost Recovery.
Sec. 7608. Organic Food and Agricultural Systems Funding.
TITLE VIII--FORESTRY
Subtitle A--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. Assistance to the Federated States of Micronesia, the
Republic of the Marshall Islands, and the
Republic of Palau.
Sec. 8004. Changes to Forest Resource Coordinating Committee.
Sec. 8005. Changes to State Forest Stewardship Coordinating Committees.
Sec. 8006. Competition in programs under Cooperative Forestry
Assistance Act of 1978.
Sec. 8007. Cooperative forest innovation partnership projects.
Subtitle B--Amendments to Other Laws
Sec. 8101. Healthy forest reserve program.
Sec. 8102. Emergency forest restoration program.
Sec. 8103. Office of International Forestry.
Sec. 8104. Rural revitalization technologies.
Subtitle C--Miscellaneous Provisions
Sec. 8201. Hispanic-serving institution agricultural land national
resources leadership program.
TITLE IX--ENERGY
Sec. 9001. Table of contents.
Sec. 9002. Federal procurement of biobased products.
Sec. 9003. Loan guarantees for biorefineries and biofuel production
plants.
Sec. 9004. Energy audit and renewable energy development program.
Sec. 9005. Renewable energy systems and energy efficiency improvements.
Sec. 9006. Biomass Research and Development Act of 2000.
Sec. 9007. Adjustments to the bioenergy program.
Sec. 9008. Research, extension, and educational programs on biobased
energy technologies and products.
Sec. 9009. Energy Council of the Department of Agriculture.
Sec. 9010. Farm energy production pilot program.
Sec. 9011. Rural energy self-sufficiency initiative.
Sec. 9012. Agricultural biofuels from biomass internship pilot program.
Sec. 9013. Feedstock flexibility program for bioenergy producers.
Sec. 9014. Biomass inventory report.
Sec. 9015. Future farmsteads program.
Sec. 9016. Sense of Congress on renewable energy.
Sec. 9017. Biodiesel fuel education program.
Sec. 9018. Biomass energy reserve.
Sec. 9019. Forest biomass for energy.
Sec. 9019. Community wood energy program.
Sec. 9020. Supplementing corn as an ethanol feedstock.
TITLE X--HORTICULTURE AND ORGANIC AGRICULTURE
Subtitle A--Honey and Bees
Sec. 10001. Annual report on response to honey bee colony collapse
disorder.
Subtitle B--Horticulture Provisions
Sec. 10101. Tree assistance program.
Sec. 10102. Specialty crop block grants.
Sec. 10103. Additional section 32 funds for purchase of fruits,
vegetables, and nuts to support domestic
nutrition assistance programs.
Sec. 10103A. Additional section 32 funds to provide grants for the
purchase and operation of urban gardens
growing organic fruits and vegetables for
the local population.
Sec. 10104. Independent evaluation of Department of Agriculture
commodity purchase process.
Sec. 10105. Quality requirements for clementines.
Sec. 10106. Implementation of food safety programs under marketing
orders.
Sec. 10107. Inclusion of specialty crops in census of agriculture.
Sec. 10108. Maturity requirements for Hass avocados.
Sec. 10109. Mushroom promotion, research, and consumer information.
Sec. 10110. Fresh produce education initiative.
Subtitle C--Pest and Disease Management
Sec. 10201. Pest and disease program.
Sec. 10202. Multi-species fruit fly research and sterile fly
production.
Subtitle D--Organic Agriculture
Sec. 10301. National organic certification cost-share program.
Sec. 10302. Organic production and market data.
Sec. 10303. Organic conversion, technical, and educational assistance.
Subtitle E--Miscellaneous Provisions
Sec. 10401. Grant program to improve movement of specialty crops.
Sec. 10402. Authorization of appropriations for market news activities
regarding specialty crops.
Sec. 10403. Farmer marketing assistance program.
Sec. 10404. National Clean Plant Network.
Sec. 10405. Healthy food urban enterprise development program.
TITLE XI--MISCELLANEOUS PROVISIONS
Subtitle A--Federal Crop Insurance
Sec. 11001. Premiums and reinsurance requirements.
Sec. 11002. Catastrophic risk protection administrative fee.
Sec. 11003. Funding for reimbursements, contracting, risk management
education, and information technology.
Sec. 11004. Reimbursement of research and development costs related to
new crop insurance products.
Sec. 11005. Research and development contracts for organic production
coverage improvements.
Sec. 11006. Targeting risk management education for beginning farmers
and ranchers and certain other farmers and
ranchers.
Sec. 11007. Crop insurance ineligibility related to crop production on
noncropland.
Sec. 11008. Funds for data mining.
Sec. 11009. Noninsured crop assistance program.
Sec. 11010. Change in due date for Corporation payments for
underwriting gains.
Sec. 11011. Sesame insurance pilot program.
Sec. 11012. National Drought Council and drought preparedness plans.
Sec. 11013. Payment of portion of premium for area revenue plans.
Sec. 11014. Share of risk.
Sec. 11015. Livestock Assistance.
Sec. 11016. Determination of certain sweet potato production.
Subtitle B--Livestock and Poultry
Sec. 11101. Sense of Congress regarding pseudorabies eradication
program.
Sec. 11102. Arbitration of livestock and poultry contracts.
Sec. 11103. State-inspected meat and poultry.
Sec. 11104. Country of origin labeling.
Sec. 11105. Sense of Congress regarding the voluntary control program
for low pathogenic avian influenza.
Sec. 11106. Sense of Congress regarding the cattle fever tick
eradication program.
Subtitle C--Socially Disadvantaged Producers and Limited Resource
Producers
Sec. 11201. Outreach and technical assistance for socially
disadvantaged farmers and ranchers and
limited resource farmers and ranchers.
Sec. 11202. Improved program delivery by Department of Agriculture on
Indian reservations.
Sec. 11203. Transparency and accountability for socially disadvantaged
farmers and ranchers.
Sec. 11204. Beginning farmer and rancher development program.
Sec. 11205. Provision of receipt for service or denial of service.
Sec. 11206. Tracking of socially disadvantaged farmers and ranchers and
limited resource farmers and ranchers in
Census of Agriculture and certain studies.
Sec. 11207. Farmworker coordinator.
Sec. 11208. Office of Outreach relocation.
Sec. 11209. Minority farmer advisory committee.
Sec. 11210. Coordinator for chronically underserved rural areas.
Subtitle D--Other Miscellaneous Provisions
Sec. 11301. Designation of separate cotton-producing States under
Cotton Research and Promotion Act.
Sec. 11302. Cotton classification services.
Sec. 11303. Availability of excess and surplus computers in rural
areas.
Sec. 11304. Permanent debarment from participation in Department of
Agriculture programs for fraud.
Sec. 11305. No discrimination against use of registered pesticide
products or classes of pesticide products.
Sec. 11306. Prohibition on closure or relocation of county offices for
the Farm Service Agency, Rural Development
Agency, and Natural Resources Conservation
Service.
Sec. 11307. Regulation of exports of plants, plant products, biological
control organisms, and noxious weeds.
Sec. 11308. Grants to reduce production of methamphetamines from
anhydrous ammonia.
Sec. 11309. USDA Graduate School.
Sec. 11310. Prevention and investigation of payment and fraud and
error.
Sec. 11311. Sense of Congress regarding food deserts, geographically
isolated neighborhoods and communities with
limited or no access to major chain grocery
stores.
Sec. 11312. Pigford claims.
Sec. 11313. Comptroller general study of wastewater infrastructure near
United States-Mexico border.
Sec. 11314. Elimination of statute of limitations applicable to
collection of debt by administrative
offset.
Sec. 11315. Pollinator protection.
Sec. 11316. Prohibition on use of live animals for marketing medical
devices; fines under the Animal Welfare
Act.
Sec. 11317. Protection of pets.
TITLE XII--PREVENTION OF TAX TREATY EXPLOITATION TO EVADE UNITED STATES
TAXATION
Sec. 12001. Limitation on treaty benefits for certain deductible
payments.
TITLE XIII--ADDITIONAL OFFSETS
Subtitle A--Conservation of Resources Fees and Repeal of Royalty Relief
Sec. 13001. Conservation of resources fees.
Sec. 13002. Repeal of certain taxpayer subsidized royalty relief for
the oil and gas industry.
Sec. 13003. Time for payment of corporate estimated taxes.
Subtitle B--Allocation of Offsets
Sec. 13011. Report on funds; rate of federal crop insurance.
TITLE I--COMMODITY PROGRAMS
Sec. 1001. Definitions.
Subtitle A--Direct Payments and Counter-Cyclical Payments
Sec. 1101. Adjustments to base acres.
Sec. 1102. Availability of direct payments.
Sec. 1103. Availability of counter-cyclical payments.
Sec. 1104. Availability of revenue-based counter-cyclical payments.
Sec. 1105. Producer agreement required as condition of provision of
direct payments and counter-cyclical
payments.
Sec. 1106. Planting flexibility.
Sec. 1107. 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. Deadline for repayment of marketing assistance loan for
peanuts.
Sec. 1211. Commodity quality incentive payments for healthy oilseeds.
Subtitle C--Sugar
Sec. 1301. Sugar program.
Sec. 1302. United States membership in the international sugar
organization.
Sec. 1303. Flexible marketing allotments for sugar.
Subtitle D--Dairy-Related Provisions
Sec. 1401. Dairy product price support program.
Sec. 1402. Dairy forward pricing program.
Sec. 1403. Dairy export incentive program.
Sec. 1404. Revision of Federal marketing order amendment procedures.
Sec. 1405. Dairy indemnity program.
Sec. 1406. Extension of milk income loss contract program.
Sec. 1407. Dairy promotion and research program.
Sec. 1408. Report on Department of Agriculture reporting procedures for
nonfat dry milk.
Sec. 1409. Federal Milk Marketing Order Review Commission.
Subtitle E--Administration
Sec. 1501. Administration generally.
Sec. 1502. Suspension of permanent price support authority.
Sec. 1503. Payment Limitations.
Sec. 1504. Adjusted gross income limitation.
Sec. 1505. Adjustments of loans.
Sec. 1506. Personal liability of producers for deficiencies.
Sec. 1507. Extension of existing administrative authority regarding
loans.
Sec. 1508. Assignment of payments.
Sec. 1509. Tracking of benefits.
Sec. 1510. Upland cotton storage payments.
Sec. 1511. Government publication of cotton price forecasts.
SEC. 1001. DEFINITIONS.
In this title:
(1) Agricultural act of 1949.--The term ``Agricultural Act
of 1949'' means the Agricultural Act of 1949 (7 U.S.C. 1421 et
seq.), as in effect prior to the suspensions under section 171
of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7301), section 1602(b) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7992(b)), and section 1502(b)
of this Act.
(2) Base acres.--The term ``base acres'', with respect to a
covered commodity on a farm, means the number of acres
established under sections 1101 and 1302 of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 7911, 7952), as in
effect on the day before the date of the enactment of this Act,
subject to any adjustment under section 1101 of this Act.
(3) Comparable united states quality.--The term
``Comparable United States Quality'', with respect to upland
cotton, means upland cotton classified as Middling (M) 1\3/32\-
inch cotton with a micronaire of 3.7 to 4.2, strength 30 grams
per tex, and uniformity of 83.
(4) Counter-cyclical payment.--The term ``counter-cyclical
payment'' means a payment made to producers on a farm under
section 1103 or 1104.
(5) Covered commodity.--The term ``covered commodity''
means wheat, corn, grain sorghum, barley, oats, upland cotton,
rice, soybeans, peanuts, and other oilseeds.
(6) Direct payment.--The term ``direct payment'' means a
payment made to producers on a farm under section 1102.
(7) 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 1103 to determine
whether counter-cyclical payments are required to be made for
that crop year under that section.
(8) 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.
(9) Far east price.--The term ``Far East price'' means the
Friday through Thursday average price quotation for the three
lowest-priced growths of upland cotton, as quoted for Middling
(M) 1\3/32\-inch cotton, delivered C/F Far East.
(10) Loan commodity.--The term ``loan commodity'' means
wheat, corn, grain sorghum, feed barley, malt barley, oats,
upland cotton, extra long staple cotton, long grain rice,
medium grain rice, short grain rice, soybeans, peanuts, other
oilseeds, wool, mohair, honey, dry peas, lentils, and small
chickpeas.
(11) Other oilseed.--The term ``other oilseed'' means a
crop of sunflower seed, rapeseed, canola, safflower, flaxseed,
mustard seed, crambe, sesame seed, or, if designated by the
Secretary, another oilseed.
(12) Payment acres.--The term ``payment acres'', with
respect to a covered commodity on a farm, means 85 percent of
the base acres for the covered commodity, on which direct
payments and counter-cyclical payments are made.
(13) Payment yield.--The term ``payment yield'' means the
yield established for direct payments and counter-cyclical
payments under section 1102 or 1302 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 7912; 7952), as in
effect on the day before the date of the enactment of this Act,
for a farm for a covered commodity.
(14) 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.
(15) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(16) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, and any other territory or
possession of the United States.
(17) Target price.--The term ``target price'' means the
price per bushel (or other appropriate unit in the case of
upland cotton, rice, peanuts, and other oilseeds) of a covered
commodity used to determine the payment rate for counter-
cyclical payments under section 1103.
(18) United states.--The term ``United States'', when used
in a geographical sense, means all of the States.
(19) 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 cotton and for M 1\3/32\-inch
exceeds the difference in the applicable premiums for
comparable international qualities delivered C/F Far East.
Subtitle A--Direct Payments and Counter-Cyclical Payments
SEC. 1101. ADJUSTMENTS TO BASE ACRES.
(a) Treatment of Conservation Reserve Contract Acreage.--
(1) In general.--The Secretary shall provide for an
adjustment, as appropriate, in the base acres for covered
commodities for a farm whenever either 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.
(B) Cropland is released from coverage under a
conservation reserve contract by the Secretary.
(2) Special payment rules.--For the crop year in which a
base acres adjustment under paragraph (1) is first made, the
owner of the farm shall elect to receive either direct payments
and counter-cyclical payments with respect to the acreage added
to the farm under this subsection or a prorated payment under
the conservation reserve contract, but not both.
(b) Prevention of Excess Base Acres.--
(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 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 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.).
(B) Any other acreage on the farm enrolled in a
conservation program for which payments are made in
exchange for not producing an agricultural commodity on
the acreage.
(3) Selection of acres.--The Secretary shall give the owner
of the farm the opportunity to select the base acres 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.
(c) Permanent Reduction in Base Acres.--
(1) In general.--The owner of a farm may reduce, at any
time, the base acres for any covered commodity for the farm.
(2) Administration.--The reduction shall be permanent and
made in the manner prescribed by the Secretary.
SEC. 1102. AVAILABILITY OF DIRECT PAYMENTS.
(a) Payment Required.--For each of the 2008 through 2012 crop years
of each covered commodity, the Secretary shall make direct payments to
producers on farms for which payment yields and base acres are
established.
(b) Payment Rate.--The payment rates used to make direct payments
with respect to covered commodities for a crop year are as follows:
(1) Wheat, $0.52 per bushel.
(2) Corn, $0.28 per bushel.
(3) Grain sorghum, $0.35 per bushel.
(4) Barley, $0.24 per bushel.
(5) Oats, $0.024 per bushel.
(6) Upland cotton, $0.0667 per pound.
(7) Rice, $2.35 per hundredweight.
(8) Soybeans, $0.44 per bushel.
(9) Other oilseeds, $0.0080 per pound.
(10) Peanuts, $36.00 per ton.
(c) Payment Amount.--The amount of the direct payment to be paid to
the producers on a farm for a covered commodity for a crop year shall
be equal to the product of the following:
(1) The payment rate specified in subsection (b).
(2) The payment acres of the covered commodity on the farm.
(3) The payment yield for the covered commodity for the
farm.
(d) Time for Payment.--
(1) In general.--In the case of each of the 2008 through
2012 crop years, the Secretary 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.--At the option of the producers on a
farm, up to 22 percent of the direct payment for a
covered commodity for any of the 2008 through 2011 crop
years shall be paid to the producers in advance.
(B) Month.--
(i) Selection.--The producers shall select
the month within which the advance payment for
a crop year will be made.
(ii) Options.--The month selected may be
any month during the period beginning on
December 1 of the calendar year before the
calendar year in which the crop of the covered
commodity is harvested through the month within
which the direct payment would otherwise be
made.
(iii) Change.--The producers 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.
(e) Prohibition on De Minimis Payments.--If the total direct
payment to be paid to a producer on a farm for all covered commodities
is less than $25.00, the Secretary shall not tender the direct payment
to the producer.
SEC. 1103. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.
(a) Payment Required.--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.--For purposes of subsection (a), the effective
price for a covered commodity is equal to the sum of the following:
(1) The higher of the following:
(A) The national average market price received by
producers during the 12-month marketing year for the
covered commodity, as determined by the Secretary.
(B) The national average loan rate for a marketing
assistance loan for the covered commodity in effect for
the applicable period under subtitle B, except that,
for the purpose of calculating counter-cyclical
payments under this section for rice and barley, the
Secretary shall establish national average all rice and
all barley loan rates.
(2) The payment rate in effect for the covered commodity
under section 1102 for the purpose of making direct payments
with respect to the covered commodity.
(c) Target Price.--For purposes of subsection (a), the target
prices for covered commodities shall be as follows:
(1) Wheat, $4.15 per bushel.
(2) Corn, $2.63 per bushel.
(3) Grain sorghum, $2.57 per bushel.
(4) Barley, $2.73 per bushel.
(5) Oats, $1.50 per bushel.
(6) Upland cotton, $0.70 per pound.
(7) Rice, $10.50 per hundredweight.
(8) Soybeans, $6.10 per bushel.
(9) Other oilseeds, $0.1150 per pound.
(10) Peanuts, $495.00 per ton.
(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.--If the Secretary determines under
subsection (a) that counter-cyclical payments are required to
be made under this section for the crop of a covered commodity,
the Secretary shall make the counter-cyclical payments for the
crop as soon as practicable after the end of the 12-month
marketing year for the covered commodity.
(2) Availability of partial payments.--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.
(3) Time for partial payments for 2008 through 2010 crop
years.--If the Secretary is required to make partial payments
available under paragraph (2) 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 6 months of the marketing year
for the covered commodity; and
(B) the final partial payment shall be made the
later of the following:
(i) As soon as practicable after the end of
the 12-month marketing year for the covered
commodity.
(ii) October 1 of the fiscal year starting
in the same calendar year as the end of the
marketing year.
(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 covered commodity for the crop year, as
determined by the Secretary.
(B) Final payment.--The final payment for each of
the 2008 through 2010 crop years 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.
(g) Prohibition on De Minimis Payments.--If the total counter-
cyclical payment to be paid to a producer on a farm for all covered
commodities is less than $25.00, the Secretary shall not tender the
counter-cyclical payment to the producer.
SEC. 1104. AVAILABILITY OF REVENUE-BASED COUNTER-CYCLICAL PAYMENTS.
(a) Availability and Election of Alternative Approach.--
(1) Availability of revenue-based counter-cyclical
payments.--As an alternative to receiving counter-cyclical
payments under section 1103 with respect to each covered
commodity on a farm, the Secretary shall give the producers on
the farm an opportunity to elect to instead receive revenue-
based counter-cyclical payments under this section for the 2008
through 2012 crop years.
(2) Single election; time for election.--As soon as
practicable after the date of enactment of this Act, the
Secretary shall provide notice to producers regarding their
opportunity to make the election described in paragraph (1).
The notice shall include the following:
(A) Notice that the opportunity of the producers on
a farm to make the election is being provided only
once.
(B) Information regarding the manner in which the
election must be made and the time periods and manner
in which notice of the election must be submitted to
the Secretary.
(3) Election deadline.--Within the time period and in the
manner prescribed pursuant to paragraph (2), the producers on a
farm shall submit to the Secretary notice of the election made
under paragraph (1).
(4) Effect of failure to make election.--If the producers
on a farm fail to make the election under paragraph (1) or fail
to timely notify the Secretary of the election made, as
required by paragraph (3), the producers shall be deemed to
have made the election to receive counter-cyclical payments
under section 1103 for all covered commodities on the farm.
(b) Payment Required.--In the case of producers on a farm who make
the election under subsection (a) to receive revenue-based counter-
cyclical payments, the Secretary shall make revenue-based counter-
cyclical payments to such producers with respect to a covered commodity
on the farm, if the Secretary determines that the national actual
revenue per acre for the covered commodity is less than the national
target revenue per acre for the covered commodity, as determined
pursuant to this section.
(c) National Actual Revenue Per Acre.--For each covered commodity
for each of the 2008 through 2012 crop years, the Secretary shall
establish a national actual revenue per acre by multiplying the
national average yield for the given year by the higher of--
(1) the national average market price received by producers
of the covered commodity during the 12-month marketing year
established by the Secretary; or
(2) the loan rate for the covered commodity under section
1202, except that, for the purpose of calculating national
actual revenue per acre for rice and barley, the Secretary
shall establish national average all rice and all barley loan
rates.
(d) National Target Revenue Per Acre.--The national target revenue
per acre shall be, on a per acre basis, as follows:
(1) Wheat, $149.92.
(2) Corn, $344.12.
(3) Grain Sorghum, $131.28.
(4) Barley, $153.30.
(5) Oats, $92.10
(6) Upland cotton, $496.93.
(7) Rice, $548.06.
(8) Soybeans, $231.87.
(9) Other oilseeds, $129.18.
(10) Peanuts, $683.83.
(e) National Payment Yield.--The national payment yield shall be as
follows:
(1) Wheat, 36.1 bushels per acre.
(2) Corn, 114.4 bushels per acre.
(3) Grain Sorghum, 58.2 bushels per acre.
(4) Barley, 48.6 bushels per acre.
(5) Oats, 49.8 bushels per acre.
(6) Upland cotton, 634 pounds per acre.
(7) Rice, 51.28 hundredweight per acre.
(8) Soybeans, 34.1 bushels per acre.
(9) Other oilseeds, 1167.6 pounds per acre.
(10) Peanuts, 1.496 tons per acre.
(f) National Payment Rate.--The national payment rate used to make
revenue-based counter-cyclical payments for a crop year shall be the
result of--
(1) the difference between the national target revenue per
acre for the covered commodity and the national actual revenue
per acre for the covered commodity; divided by
(2) the national payment yield for the covered commodity.
(g) Payment Amount.--If revenue-based counter-cyclical payments are
required to be paid for any of the 2008 through 2012 crop years of a
covered commodity, the amount of the counter-cyclical payment to be
paid to the producers on a farm for that crop year for the covered
commodity shall be equal to the product of--
(1) the national payment rate for the covered commodity;
(2) the payment acres of the covered commodity on the farm;
and
(3) the payment yield for counter-cyclical payments for the
covered commodity.
(h) Time for Payments.--
(1) General rule.--If the Secretary determines that
revenue-based counter-cyclical payments are required to be made
under this section for the crop of a covered commodity, the
Secretary shall make the counter-cyclical payments for the crop
as soon as practicable after the end of the 12-month marketing
year for the covered commodity.
(2) Availability of partial payments.--If, before the end
of the 12-month marketing year for a covered commodity, the
Secretary estimates that revenue-based 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 revenue-based
counter-cyclical payments projected to be made for that crop of
the covered commodity.
(3) Time for partial payments for 2008 through 2010 crop
years.--If the Secretary is required to make partial payments
available under paragraph (2) 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 6 months of the marketing year
for the covered commodity; and
(B) the final partial payment shall be made the
later of the following:
(i) As soon as practicable after the end of
the 12-month marketing year for the covered
commodity.
(ii) October 1 of the fiscal year starting
in the same calendar year as the end of the
marketing year.
(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 revenue-based
counter-cyclical payment for the covered commodity for
the crop year, as determined by the Secretary.
(B) Final payment.--The final payment for each of
the 2008 through 2010 crop years shall be equal to the
difference between--
(i) the actual revenue-based counter-
cyclical payments 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 on a farm under subparagraph
(A) for that crop year.
(5) Repayment.--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 revenue-based counter-
cyclical payments to be made for the covered commodity for that
crop year.
(i) Prohibition on De Minimis Payments.--If the total revenue-based
counter-cyclical payment to be paid to a producer on a farm for all
covered commodities is less than $25.00, the Secretary shall not tender
the revenue-based counter-cyclical payment to the producer.
SEC. 1105. PRODUCER AGREEMENT REQUIRED AS CONDITION OF PROVISION OF
DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS.
(a) Compliance With Certain Requirements.--
(1) Requirements.--Before the producers on a farm may
receive direct payments or counter-cyclical payments with
respect to the farm, the producers shall agree, during the crop
year for which the payments are made and in exchange for the
payments--
(A) to comply with applicable conservation
requirements under subtitle B of title XII of the Food
Security Act of 1985 (16 U.S.C. 3811 et seq.);
(B) to comply with applicable wetland protection
requirements under subtitle C of title XII of that Act
(16 U.S.C. 3821 et seq.);
(C) to comply with the planting flexibility
requirements of section 1106;
(D) to use the land on the farm, in a quantity
equal to the attributable base acres for the farm for
an agricultural or conserving use, and not for a
nonagricultural commercial or industrial 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.
(2) Compliance.--The Secretary may issue such rules as the
Secretary considers necessary to ensure producer compliance
with the requirements of paragraph (1).
(3) Modification.--At the request of the transferee or
owner, the Secretary may modify the requirements of this
subsection if the modifications are consistent with the
objectives of this subsection, as determined by the Secretary.
(b) Transfer or Change of Interest in Farm.--
(1) Termination.--
(A) In general.--Except as provided in paragraph
(2), a transfer of (or change in) the interest of the
producers on a farm in base acres for which direct
payments or counter-cyclical payments are made shall
result in the termination of the payments with respect
to the base acres, unless the transferee or owner of
the acreage agrees to assume all obligations under
subsection (a).
(B) Effective date.--The termination shall take
effect on the date determined by the Secretary.
(2) Exception.--If a producer entitled to a direct payment
or counter-cyclical payment dies, becomes incompetent, or is
otherwise unable to receive the payment, the Secretary shall
make the payment, in accordance with rules issued by the
Secretary.
(c) Acreage Reports.--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.
(d) Tenants and Sharecroppers.--In carrying out this subtitle, the
Secretary shall provide adequate safeguards to protect the interests of
tenants and sharecroppers.
(e) Sharing of Payments.--The Secretary shall provide for the
sharing of direct payments and counter-cyclical payments among the
producers on a farm on a fair and equitable basis.
SEC. 1106. PLANTING FLEXIBILITY.
(a) Permitted Crops.--Subject to subsection (b), any commodity or
crop may be planted on base acres on a farm.
(b) Limitations Regarding Certain Commodities.--
(1) General limitation.--The planting of an agricultural
commodity specified in paragraph (3) shall be prohibited on
base acres unless the commodity, if planted, is destroyed
before harvest.
(2) Treatment of trees and other perennials.--The planting
of an agricultural commodity specified in paragraph (3) that is
produced on a tree or other perennial plant shall be prohibited
on base acres.
(3) Covered agricultural commodities.--Paragraphs (1) and
(2) apply to the following agricultural commodities:
(A) Fruits.
(B) Vegetables (other than lentils, mung beans, and
dry peas).
(C) Wild rice.
(c) Exceptions.--Paragraphs (1) and (2) of subsection (b) shall not
limit the planting of an agricultural commodity specified in paragraph
(3) of that subsection--
(1) in any region in which there is a history of double-
cropping of covered commodities with agricultural commodities
specified in subsection (b)(3), as determined by the Secretary,
in which case the double-cropping shall be permitted;
(2) on a farm that the Secretary determines has a history
of planting agricultural commodities specified in subsection
(b)(3) on base acres, except that direct payments and counter-
cyclical payments shall be reduced by an acre for each acre
planted to such an agricultural commodity; or
(3) by the producers on a farm that the Secretary
determines has an established planting history of a specific
agricultural commodity specified in subsection (b)(3), except
that--
(A) the quantity planted may not exceed the average
annual planting history of such agricultural commodity
by the producers on the farm in the 1991 through 1995
or 1998 through 2001 crop years (excluding any crop
year in which no plantings were made), as determined by
the Secretary; and
(B) direct payments and counter-cyclical payments
shall be reduced by an acre for each acre planted to
such agricultural commodity.
(d) Planting Transferability Pilot Project.--
(1) Pilot project authorized.--In addition to the
exceptions provided in subsection (c), the Secretary shall
carry out a pilot project in the State of Indiana under which
paragraphs (1) and (2) of subsection (b) shall not limit the
planting of tomatoes grown for processing on up to 10,000 base
acres during each of the 2008 through 2012 crop years.
(2) Contract and management requirements.--To be eligible
for selection to participate in the pilot project, a producer
must--
(A) have a contract to grow tomatoes for
processing; and
(B) agree to produce the tomatoes as part of a
program of crop rotation on the farm to achieve
agronomic and pest and disease management benefits.
(3) Temporary reduction in base acres.--The base acres on a
farm for a crop year shall be reduced by an acre for each acre
planted to tomatoes under the pilot program.
(4) Duration of reductions.--The reduction in the base
acres of a farm for a crop year under paragraph (3) shall
expire at the end of the crop year, unless the producers on the
farm elect to continue to participate in the pilot project for
the subsequent crop year.
(5) Recalculation of base acres.--If the Secretary
recalculates base acres for a farm while the farm is included
in the pilot project, the planting and production of tomatoes
under the pilot project shall be considered to be the same as
the planting, prevented planting, or production of a covered
commodity. Nothing in this paragraph provides authority for the
Secretary to recalculate base acres for a farm.
SEC. 1107. 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) Treatment of Certain Commingled Commodities.--In carrying out
this subtitle, the Secretary shall make loans to producers on a farm
that would be eligible to obtain a marketing assistance loan, but for
the fact the loan commodity owned by the producers on the farm
commingled with loan commodities of other producers in facilities
unlicensed for the storage of agricultural commodities by the Secretary
or a State licensing authority, if the producers obtaining the loan
agree to immediately redeem the loan collateral in accordance with
section 166 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7286).
(d) Compliance With Conservation and Wetlands Requirements.--As a
condition of the receipt of a marketing assistance loan under
subsection (a), the producer shall comply with applicable conservation
requirements under subtitle B of title XII of the Food Security Act of
1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection
requirements under subtitle C of title XII of the Act (16 U.S.C. 3821
et seq.) during the term of the loan.
(e) Peanut-Related Loan Provisions.--
(1) Options for obtaining loans.--A marketing assistance
loan for peanuts under this section and loan deficiency
payments for peanuts under section 1205 may be obtained at
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.
(2) 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.
(3) 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.
SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE LOANS.
(a) Loan Rates.--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 malt barley, $2.50 per bushel.
(5) In the case of feed barley, $1.90 per bushel.
(6) In the case of oats, $1.46 per bushel.
(7) In the case of the base quality of upland cotton, $0.52
per pound.
(8) In the case of extra long staple cotton, $0.7977 per
pound.
(9) In the case of long grain rice, $6.50 per
hundredweight.
(10) In the case of medium grain rice and short grain rice,
$6.50 per hundredweight.
(11) In the case of soybeans, $5.00 per bushel.
(12) In the case of other oilseeds, $0.1070 per pound 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.
(13) In the case of dry peas, $5.40 per hundredweight.
(14) In the case of lentils, $11.28 per hundredweight.
(15) In the case of small chickpeas, $8.54 per
hundredweight.
(16) In the case of peanuts, $355.00 per ton.
(17) In the case of graded wool, $1.10 per pound.
(18) In the case of nongraded wool, $0.40 per pound.
(19) In the case of honey, $0.60 per pound.
(20) In the case of mohair, $4.20 per pound.
(b) Single County Loan Rate for Other Oilseeds.--The Secretary
shall establish a single loan rate in each county for each kind of
other oilseeds described in subsection (a)(12).
(c) Special Rules for Corn and Grain Sorghum.--
(1) Single county and national average loan rate.--The
Secretary shall--
(A) establish a single county loan rate for corn
and grain sorghum in each county;
(B) establish a single national average loan rate
for corn and grain sorghum; and
(C) determine each county loan rate and the
national average loan rate for corn and grain sorghum
and any and all other program loan rates applicable to
corn and grain sorghum from a data set that includes
prices for both commodities.
(2) Administration.--With respect to corn and grain
sorghum, the Secretary--
(A) shall administer the applicable loan, marketing
loan, counter-cyclical payment, and related programs
from a single loan rate for corn and grain sorghum that
is identical in each individual county;
(B) shall provide that any adjustment in the loan
rate for location shall be determined and applied on
the basis of the combined data set such that any
transportation adjustment shall be the same for corn
and grain sorghum in each individual county; and
(C) may provide for adjustments for grade, type,
and quality as appropriate for the corn or grain
sorghum involved in each specific transaction.
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, short grain rice, extra long staple cotton, and confectionery and
each other kind of sunflower seed (other than oil sunflower seed)) at
the lesser of the following:
(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 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, if applicable.
(b) Repayment Rates for Upland Cotton and Rice.--The Secretary
shall permit producers to repay a marketing assistance loan under
section 1201 for upland cotton, long grain rice, medium grain rice, and
short grain rice at a rate that is the lesser of--
(1) the loan rate established for the commodity under
section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283)); or
(2) the prevailing world market price for the commodity
(adjusted to United States quality and location), as determined
by the Secretary.
(c) Repayment Rates for Extra Long Staple Cotton.--Repayment of a
marketing assistance loan for extra long staple cotton shall be at the
loan rate established for the commodity under section 1202, plus
interest (determined in accordance with section 163 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
(d) Prevailing World Market Price.--For purposes of this section
and section 1207, the Secretary shall prescribe by regulation--
(1) a formula to determine the prevailing world market
price for upland cotton, which shall be based on the Far East
price of upland cotton;
(2) a formula to determine the prevailing world market
price for--
(A) long grain rice; and
(B) medium and short grain rice;
(3) a mechanism by which the Secretary will announce
periodically the prevailing world market price for upland
cotton, long grain rice, and medium and short grain rice; and
(4) a mechanism by which the Secretary will make the
adjustments, required by subsection (e), to the prevailing
world market price for upland cotton, long grain rice, and
medium and short grain rice.
(e) Adjustment of Prevailing World Market Price for Upland Cotton
and Rice.--
(1) Rice.--The prevailing world market price for long
grain, medium grain, and short grain rice determined in
subsection (d) shall be adjusted to United States quality and
location.
(2) Cotton.--The prevailing world market price for upland
cotton, determined in subsection (d) shall be--
(A) adjusted to United States quality and location,
with such quality adjustment to include--
(i) any existing United States loan
schedule premiums for Comparable United States
Quality; and
(ii) a reduction equal to any United States
Premium Factor to upland cotton of a quality
higher than Middling (M) 1\3/32\-inch; and
(B) adjusted to take into account average costs to
market the commodity, including average transportation
costs, as determined by the Secretary.
(f) Additional Adjustment Authority Regarding Prevailing World
Market Price for Upland Cotton.--
(1) In general.--During the period beginning on the date of
the enactment of this Act through July 31, 2013, the Secretary
may further adjust the prevailing world market price for upland
cotton (adjusted under subsection (d)) if the Secretary
determines such adjustment necessary--
(A) to minimize potential loan forfeitures;
(B) to minimize the accumulation of stocks of the
commodity by the Federal Government;
(C) to allow the commodity produced in the United
States to be marketed freely and competitively, both
domestically and internationally;
(D) to ensure that United States cotton is
competitive in world markets; and
(E) to ensure an appropriate transition between
current-crop and forward-crop price quotations, except
that the Secretary may use forward-crop price
quotations prior to July 31 of the current marketing
year only if there are less than three current-crop
price quotations and only if such forward-crop price
quotation is the lowest such quotation available.
(2) Guidelines for additional adjustment.--In further
adjusting the prevailing world market price for upland cotton
under this subsection, the Secretary shall establish a
mechanism for determining and announcing such adjustments in
order to avoid undue disruption in the United States market.
(g) 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.
(h) Quality Grades for Dry Peas, Lentils, and Small Chickpeas.--The
loan repayment rate for dry peas, lentils, and small chickpeas shall be
based on the quality grades for the applicable commodity.
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 the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.)
or noninsured crop assistance under section 196 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).
SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON.
(a) Special Import Quota.--
(1) Definition of special import quota.--In this
subsection, the term ``special import quota'' means a quantity
of imports that is not subject to the over-quota tariff rate of
a tariff-rate quota.
(2) Establishment.--
(A) In general.--The President shall carry out an
import quota program during the period beginning on the
date of the enactment of this Act through July 31,
2013, as provided in this subsection.
(B) Program requirements.--Whenever the Secretary
determines and announces that for any consecutive 4-
week period, the Friday through Thursday average price
quotation for the lowest-priced United States growth,
as quoted for Middling (M) 1\3/32\-inch cotton,
delivered C/F Far East, exceeds the Far East price
there shall immediately be in effect a special import
quota.
(3) Quantity.--The quota shall be equal to 1 week's
consumption of upland 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 (1) 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 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.
(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) Issuance of marketing certificates or cash payments.--
During the period beginning on the date of the enactment of
this Act through July 31, 2013, the Secretary shall issue, on a
monthly basis, marketing certificates or cash payments, at the
option of the recipient, to domestic users of upland cotton for
all documented use of upland cotton during the previous monthly
period regardless of the origin of the upland cotton.
(2) Value of certificates or payments.--The value of the
marketing certificates or cash payments shall be 4 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 such funds shall be
used only for acquisition, construction, installation,
modernization, development, conversion, or expansion of 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 determined necessary to carry out the provisions
of 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 liable to repay such assistance
to the Secretary, plus interest, as determined by the
Secretary, and shall be ineligible to participate in the
program established by this subsection for a period of 12
months following the determination of the Secretary.
SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG STAPLE COTTON.
(a) Competitiveness Program.--Notwithstanding any other provision
of law, during the period beginning on the date of the enactment of
this Act through July 31, 2013, the Secretary shall carry out a
program--
(1) to maintain and expand the domestic use of extra long
staple cotton produced in the United States;
(2) to increase exports of extra long staple cotton
produced in the United States; and
(3) to ensure that extra long staple cotton produced in the
United States remains competitive in world markets.
(b) Payments Under Program; Trigger.--Under the program, the
Secretary shall make payments available under this section whenever--
(1) for a consecutive 4-week period, the world market price
for the lowest priced competing growth of extra long staple
cotton (adjusted to United States quality and location and for
other factors affecting the competitiveness of such cotton), as
determined by the Secretary, is below the prevailing United
States price for a competing growth of extra long staple
cotton; and
(2) the lowest priced competing growth of extra long staple
cotton (adjusted to United States quality and location and for
other factors affecting the competitiveness of such cotton), as
determined by the Secretary, is less than 134 percent of the
loan rate for extra long staple cotton.
(c) Eligible Recipients.--The Secretary shall make payments
available under this section to domestic users of extra long staple
cotton produced in the United States and exporters of extra long staple
cotton produced in the United States that enter into an agreement with
the Commodity Credit Corporation to participate in the program under
this section.
(d) Payment Amount.--Payments under this section shall be based on
the amount of the difference in the prices referred to in subsection
(b)(1) during the fourth week of the consecutive 4-week period
multiplied by the amount of documented purchases by domestic users and
sales for export by exporters made in the week following such a
consecutive 4-week period.
(e) Form of Payment.--Payments under this section shall be made
through the issuance of cash or marketing certificates, at the option
of eligible recipients of the payments.
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. DEADLINE FOR REPAYMENT OF MARKETING ASSISTANCE LOAN FOR
PEANUTS.
(a) June 30 Redemption Deadline.--Notwithstanding any other
provision of law, a marketing assistance loan for peanuts may not be
redeemed after June 30 of the year subsequent to the year in which the
peanuts were harvested.
(b) Effect of Failure to Redeem.--A marketing assistance loan for
peanuts that is not redeemed before the deadline imposed by subsection
(a) shall be deemed to be forfeited to the Commodity Credit
Corporation.
SEC. 1211. COMMODITY QUALITY INCENTIVE PAYMENTS FOR HEALTHY OILSEEDS.
(a) Incentive Payments Required.--Subject to the availability of
funds for this purpose, the Secretary shall provide commodity quality
incentive payments during the 2009 through 2013 crop years 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 that has, as determined
by the Secretary--
(1) been demonstrated to reduce or eliminate the need to
partially hydrogenate the oil derived from the oilseed for use
in human consumption; and
(2) 1 or more traits for which compelling impediments to
commercialization have been identified.
(c) Request for Proposals.--
(1) Issuance.--If funds are available to carry out this
section for a crop year, the Secretary shall issue a request
for proposals for payments under this section.
(2) Multiyear proposals.--An entity may submit a multiyear
proposal for payments under this section.
(3) Content of proposals.--A proposal for payments under
this section shall include a description of--
(A) each trait of the oilseed described in
subsection (b)(2) and the value of the trait as a
matter of public policy;
(B) the projected market size and value of the
trait;
(C) the projected impact of the proposal on--
(i) the future price of loan commodities;
and
(ii) if appropriate, on Federal Government
farm program outlays to support loan
commodities;
(D) a range for the amount of total per bushel
premiums to be paid to producers;
(E) a per bushel amount of incentive payments
requested for each year under this section that--
(i) does not exceed \1/3\ of the total
premium offered for any year; and
(ii) declines over time;
(F) the period of time, of 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 so
as to allow successful applicants to offer production contracts
to producers beginning in advance of the spring planting season
for the 2009 crop year.
(2) Multiyear contracts.--A successful applicant may enter
into a multiyear contract with--
(A) a specific group of producers; or
(B) various groups of producers.
(3) Timing of payments.--The Secretary shall make payments
under this section after the Secretary receives documentation
that the total premium offered for crops produced under a
contract (including the amount of incentive payments) has been
made to covered producers.
(e) Administration.--If funding provided for a crop year is not
fully allocated under the initial request for proposals under
subsection (c), the Secretary shall issue additional requests for
proposals for subsequent years under this section.
(f) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2009 through 2013.
Subtitle C--Sugar
SEC. 1301. 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 for raw cane sugar
available to processors of domestically grown sugarcane at a rate equal
to 18.5 cents per pound for each of the 2008 through 2012 crop years.
``(b) Sugar Beets.--The Secretary shall make loans for refined beet
sugar available to processors of domestically grown sugar beets at a
rate equal to 23.5 cents per pound for each of the 2008 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, including United
States exports of high fructose corn syrups to
Mexico.
``(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 of Agriculture 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 the enactment of this Act.
SEC. 1302. UNITED STATES MEMBERSHIP IN THE INTERNATIONAL SUGAR
ORGANIZATION.
The Secretary of Agriculture shall work with the Secretary of State
to restore United States membership in the International Sugar
Organization within one year after the date of enactment of this Act.
SEC. 1303. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.
(a) Definition of Human Consumption.--Section 359a of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa) is amended--
(1) by redesignating paragraphs (1) through (4) as
paragraphs (2) through (5), respectively; and
(2) by inserting before paragraph (2), as so redesignated,
the following new paragraph (1):
``(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.''.
(b) Sugar Allotments.--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 such
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 no 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 such sugar beets or in-process beet sugar
was produced domestically or imported) at a level 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).
``(2) Minimum.--The level of allotments established under
paragraph (1) may not be less than 85 percent of the estimated
quantity of sugar for domestic human consumption for the crop
year.
``(3) Products.--The Secretary may include sugar products,
whose majority content is sucrose, in the allotments
established under paragraph (1) if the Secretary determines
that the inclusion of such sugar products is appropriate for
controlling the supply of sugar for human consumption.
``(c) Coverage of Allotments.--
``(1) In general.--The marketing allotments provided for in
this part shall apply to the marketing by processors of sugar
intended for domestic human consumption that has been processed
from sugar cane or sugar beets or in-process beet sugar
(whether such sugar beets or in-process beet sugar was produced
domestically or imported).
``(2) Exceptions.--Consistent with the administration of
marketing allotments during crop years 2002 through 2007, the
marketing allotments shall not apply to sugar sold--
``(A) to facilitate the exportation of such sugar
to a foreign country, except that such exports of sugar
shall not be eligible to receive credits under re-
export programs for refined sugar or sugar containing
products administered by the Secretary;
``(B) to enable another processor to fulfill an
allocation established for such other processor, except
that such sales must be made before May 1 and must be
reported to the Secretary; or
``(C) for uses other than domestic human
consumption.
``(d) Prohibitions.--
``(1) In general.--During any crop year or portion thereof
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 such processor, except to enable
another processor to fulfill an allocation established for such
other processor or to facilitate the exportation of such 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.
``(3) Definition of market.--For purposes of this part, the
term `market' shall mean to sell or otherwise dispose of in
commerce in the United States, including--
``(A) the forfeiture of sugar under the loan
program for sugar under section 156 of the Federal
Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7272) and such forfeited sugar shall be deemed
to have been marketed during the crop year in which the
loan was made;
``(B) with respect to any integrated processor and
refiner, the movement of raw cane sugar into the
refining process; and
``(C) the sale of sugar for the production of
ethanol or other bioenergy product, if such ethanol or
bioenergy product is the subject of a payment under the
feedstock flexibility program for bioenergy
producers.''.
(c) Establishment.--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
new subsection:
``(b) Overall Allotment Quantity.--
``(1) In general.--The Secretary shall establish the
overall quantity of sugar to be allotted for the crop year (in
this part referred to as the `overall allotment quantity') at a
level sufficient to maintain raw and refined sugar prices above
forfeiture levels to avoid the forfeiture of sugar to the
Commodity Credit Corporation.
``(2) Minimum.--The overall allotment quantity established
under paragraph (1) may not be less than 85 percent of the
estimated quantity of sugar for domestic human consumption for
the crop year.
``(3) Adjustment.--Subject to paragraphs (1) and (2), the
Secretary shall adjust the overall allotment quantity--
``(A) to maintain raw and refined sugar prices
above forfeiture levels to avoid the forfeiture of
sugar to the Commodity Credit Corporation; and
``(B) to maintain adequate supplies of raw and
refined sugar in the domestic market.'';
(2) in subsection (d)(2), by inserting before the period
the following: ``or in-process beet sugar'';
(3) in subsection (g)(1), by inserting at the end the
following new sentence: ``However, the overall allotment
quantity may not be reduced to a quantity less than 85 percent
of the estimated quantity of sugar for domestic human
consumption for the crop year.''; and
(4) by striking subsection (h).
(d) Allocation of Marketing Allotments.--Section 359d(b) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359dd(b)) is amended--
(1) in paragraph (1)(F), by striking ``Except as otherwise
provided in section 359f(c)(8), if'' and inserting ``If''; and
(2) in paragraph (2), by striking subparagraphs (H) and (I)
and inserting the following new subparagraph:
``(H) New entrants starting production, reopening,
or acquiring an existing factory with production
history.--
``(i) Allocation for a new entrant that has
constructed a new factory or reopened a factory
that was not operating 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 in order
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.
``(ii) Allocation for a new entrant that
has acquired an existing factory with a
production history.--If a New Entrant acquires
an existing factory that has processed sugar
beets from the 1998 or later crop years and has
a production history, then, upon 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 allocation of
the current allocation holder to reflect the
historical contribution of the production of
the acquired factory to the total allocation of
the current allocation holder. In the absence
of mutual agreement, the new entrant shall be
ineligible for a beet sugar allocation.
``(iii) Appeals.--Any decision made under
this subsection may be appealed to the
Secretary pursuant to section 359i.
``(iv) Definition.--In this subparagraph,
the term `New Entrant' means an individual,
corporation, or other entity that does not have
an allocation of the beet sugar allotment under
this part, is not affiliated with any other
individual, corporation, or entity that has an
allocation of beet sugar under this part (known
as a `third party'), and 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.
``(v) Affiliation.--For purposes of this
subparagraph, a New Entrant and a third party
shall be deemed to be `affiliated' if--
``(I) the third party has an
ownership interest in the New Entrant;
``(II) the New Entrant and the
third party have owners in common;
``(III) the third party has the
ability to exercise control over the
New Entrant by organizational rights,
contractual rights, or any other means;
``(IV) 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
such third party; or
``(V) any other similar
circumstance exists by which the
Secretary determines that the New
Entrant and the third party are
affiliated.''.
(e) Reassignment of Deficits.--Section 359e(b) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is amended in both
paragraphs (1)(D) and (2)(C) by inserting ``of raw cane sugar'' after
``imports''.
(f) Provisions Applicable to Producers.--Section 359f(c) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(c)) is amended--
(1) in paragraph (2), by striking ``quantity of sugarcane''
and inserting ``quantity of sugar produced from sugarcane'';
(2) in paragraph (5)(C), by inserting ``for sugar'' before
``in excess of the farm's proportionate share'';
(3) in paragraph (7), by striking ``amount of sugarcane''
and inserting ``amount of sugar from sugarcane''; and
(4) by striking paragraph (8) and inserting the following
new paragraph:
``(8) Seed definition.--In this subsection, the term `seed'
includes only varieties of seed dedicated to the production of
sugarcane from which is produced sugar for human consumption,
and excludes seed of high-fiber cane varieties dedicated to
other uses, as determined by the Secretary.''.
(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
new subsection:
``(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 base acreage
established under section 359f(c) that has been or is
converted to non-agricultural use on or after May 13,
2002, may be transferred to other land suitable for the
production of sugarcane that can be delivered to a
processor in a proportionate share State in accordance
with this paragraph.
``(B) Notification.--Not later than 90 days after
the date of the enactment of the Farm, Nutrition, and
Bioenergy Act of 2007, or the subsequent conversion of
sugarcane base acreage to a non-agricultural use, the
Secretary, acting through the Farm Service Agency,
shall notify the affected landowner (or landowners) of
the transferability of the applicable sugarcane base
acreage.
``(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 one or more farms owned by the
owner.
``(D) Grower of record.--If the transfer under
subparagraph (C) cannot be accomplished within the time
period prescribed in such subparagraph, then the grower
of record with regard to the base acreage on the date
on which the acreage was converted to non-agricultural
use shall be so notified, and shall be afforded 90 days
from the date of the receipt of such notification to
transfer the base to one or more farms operated by the
grower.
``(E) Pool distribution.--If the transfers under
subparagraphs (B) and (C) cannot be accomplished within
the time periods prescribed therein, then the county
committee for the applicable parish shall place the
acreage base in a pool for possible assignment to other
farms. After providing reasonable notice to farm
owners, operators, and growers of record in the parish,
the county committee shall accept requests from owners,
operators, and growers of record in the parish. The
county committee shall assign the base to other farms
in the parish that are eligible and capable of
accepting such base, based on a random drawing from
among the requests received from owners, operators, and
growers of record with eligible farms.
``(F) Statewide reallocation.--Any base remaining
unassigned after the processes in subparagraphs (A)
through (E) shall be made available to the State
committee for allocation among the remaining county
committees in the State representing parishes with
farms eligible for assignment of the base. The
remaining base shall be reallocated to requesting
county committees based on a random drawing. Any county
committee receiving base under this subparagraph shall
allocate the base to eligible farms using the process
described in subparagraph (E).
``(G) Status of reassigned base.--Once reassigned
pursuant to this paragraph, the acreage base shall
remain on the farm, and will be subject to the transfer
provisions of paragraph (1).'';
(2) by striking subsection (d) and inserting the following
new subsection:
``(d) Transfers of Mill Allocations.--
``(1) Transfer authorized.--A producer in a proportionate
share State, upon written consent from all affected crop-share
owners (or the representative of the crop-share owners) of a
farm may deliver sugarcane to another processing company if the
additional delivery, when combined with such other processing
company's existing deliveries, does not exceed the processing
capacity of the company.
``(2) Allocation adjustment.--Notwithstanding section 359d,
the Secretary shall adjust the allocations of each of such
processing companies affected by a transfer under paragraph (1)
to reflect the change in deliveries, 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 grower's contribution to the processing
company's allocation for the sugarcane base acres 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) Administration of Tariff Rate Quotas.--The Agricultural
Adjustment Act of 1938 is amended by striking section 359k (7 U.S.C.
1359kk) and inserting the following new section:
``SEC. 359K. ADMINISTRATION OF TARIFF RATE QUOTAS.
``(a) Establishment.--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
necessary to comply with obligations under international trade
agreements that have been approved by the Congress. This subsection
shall not apply to specialty sugar.
``(b) Adjustment.--
``(1) Before april 1.--
``(A) Initial adjustment required.--Before April 1
of a fiscal year, in the event that there is an
emergency shortage of sugar in the United States market
that is caused by war, floods, hurricanes, or other
natural disaster, or other similar event, the Secretary
shall take action to increase supply as provided under
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.
``(B) Additional adjustment.--If, after adjustment
under subparagraph (A), there is still a shortage of
sugar in the United States market, and marketings of
domestic sugar have been maximized, the Secretary may
increase the tariff-rate quota for refined sugars
sufficient to accommodate the supply increase, if such
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.--
``(A) Initial adjustment authorized.--On or after
April 1 of a fiscal year, the Secretary may take action
to increase supply as provided under 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.
``(B) Additional adjustment.--If, after adjustment
under subparagraph (A), there is still a shortage of
sugar in the United States market, and marketings of
domestic sugar have been maximized, the Secretary may
increase the tariff-rate quota for raw cane sugar if
such 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).
``(c) Orderly Shipping Patterns for Major Suppliers.--
``(1) In general.--The Secretary of Agriculture shall
establish orderly shipping patterns for major suppliers of
sugar to the United States under the tariff rate quotas in
accordance with this subsection.
``(2) Very large major suppliers.--If a country holds quota
allocations of at least 100,000 metric tons of sugar, the
Secretary shall allow the country to export up to 25 percent of
the country's quota allocation to the United States in each
calendar quarter. Sugar permitted to enter into the United
States in a calendar quarter, but not actually entered in that
quarter, may be entered into the United States at any time
during the remainder of the fiscal year.
``(3) Large major suppliers.--For countries holding quota
allocations of more than 45,000 metric tons of sugar, but less
than 100,000 metric tons of sugar, the Secretary shall require
that the country may ship not more than 50 percent of the
country's quota sugar to the United States in the first six
months of the year.''.
(j) Effective Date.--The Agricultural Adjustment Act of 1938 is
amended by inserting after section 359k (7 U.S.C. 1359kk) the following
new section:
``SEC. 359L. EFFECTIVE PERIOD.
``This part shall be effective only for the 2008 through 2012 crop
years for sugar.''.
(k) Transition.--The Secretary of Agriculture shall administer
flexible marketing allotments for sugar for the 2007 crop year for
sugar on the terms and conditions provided in part VII of title III of
the Agricultural Adjustment Act of 1938, as in effect on the day before
the date of the enactment of this Act.
Subtitle D--Dairy-Related Provisions
SEC. 1401. DAIRY PRODUCT PRICE SUPPORT PROGRAM.
(a) Support Activities.--During the period beginning on January 1,
2008, through December 31, 2012, the Secretary of Agriculture shall
support the price of cheddar cheese, butter, and nonfat dry milk
through the purchase of such products made from milk produced in the
United States.
(b) Purchase Price.--To carry out subsection (a) during the period
specified in such 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.
(c) Temporary Price Adjustment to Avoid Excess Inventories.--
(1) Adjustments authorized.--The Secretary may adjust the
minimum purchase prices established under subsection (b) only
as permitted under this subsection.
(2) Cheese inventories in excess of 200 million pounds.--If
net removals for a period of 12 consecutive months exceed 200
million pounds of cheese, but do not exceed 400 million pounds,
the Secretary may reduce the purchase prices under paragraphs
(1) and (2) of subsection (b) during the immediately following
month by not more than 10 cents per pound.
(3) Cheese inventories in excess of 400 million pounds.--If
net removals for a period of 12 consecutive months exceed 400
million pounds of cheese, the Secretary may reduce the purchase
prices under paragraphs (1) and (2) of subsection (b) during
the immediately following month by not more than 20 cents per
pound.
(4) Butter inventories in excess of 450 million pounds.--If
net removals for a period of 12 consecutive months exceed 450
million pounds of butter, but do not exceed 650 million pounds,
the Secretary may reduce the purchase price under subsection
(b)(3) during the immediately following month by not more than
10 cents per pound.
(5) Butter inventories in excess of 650 million pounds.--If
net removals for a period of 12 consecutive months exceed 650
million pounds of butter, the Secretary may reduce the purchase
price under subsection (b)(3) during the immediately following
month by not more than 20 cents per pound.
(6) Nonfat dry milk inventories in excess of 600 million
pounds.--If net removals for a period of 12 consecutive months
exceed 600 million pounds of nonfat dry milk, but do not exceed
800 million pounds, the Secretary may reduce the purchase price
under subsection (b)(4) during the immediately following month
by not more than 5 cents per pound.
(7) Nonfat dry milk inventories in excess of 800 million
pounds.--If net removals for a period of 12 consecutive months
exceed 800 million pounds of nonfat dry milk, the Secretary may
reduce the purchase price under subsection (b)(4) during the
immediately following month by not more than 10 cents per
pound.
(d) Uniform Purchase Price.--The prices that the Secretary pays for
cheese, butter, or nonfat dry milk, respectively, under subsection (a)
shall be uniform for all regions of the United States.
(e) Sales From Inventories.--In the case of each commodity
specified in subsection (b) that is available for unrestricted use in
inventories of the Commodity Credit Corporation, the Secretary may sell
the commodity at the market prices prevailing for that commodity at the
time of sale, except that the sale price may not be less than 110
percent of the minimum purchase price specified in subsection (b) for
that commodity.
(f) Net Removals Defined.--In this section, the term ``net
removals'' means--
(1) the sum of the quantity of a product described in
subsection (a) purchased by the Commodity Credit Corporation
under this section and the quantity of such product exported
under section 153 of the Food Security Act of 1985 (15 U.S.C.
713a-14); less
(2) the amount of such product sold for unrestricted use by
the Commodity Credit Corporation.
(g) Commodity Credit Corporation.--The Secretary shall use the
funds of the Commodity Credit Corporation to carry out this section.
SEC. 1402. DAIRY FORWARD PRICING PROGRAM.
(a) Program Required.--The Secretary of Agriculture shall establish
a program under which milk producers and cooperative associations of
producers are authorized to voluntarily enter into forward price
contracts with milk handlers.
(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 deemed to satisfy--
(1) all uniform and minimum milk price requirements of
paragraphs (B) and (F) of subsection (5) of section 8c of the
Agricultural Adjustment Act (7 U.S.C. 627), reenacted with
amendments by the Agricultural Marketing Agreement Act of 1937;
and
(2) the total payment requirement of paragraph (C) of such
subsection.
(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 the limitation in 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 handler's
obligations with regard to Class I milk usage.
(d) Voluntary Program.--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, and such producer or cooperative association may continue to
have their milk priced under the order's minimum payment provisions.
The Secretary shall investigate complaints made by producers or
cooperative associations of coercion by handlers to enter into forward
contracts, and if the Secretary finds evidence of such coercion, the
Secretary shall take appropriate action.
(e) Duration.--No forward price contract may be entered into under
this program after September 30, 2012, and no forward contract entered
into under the program may extend beyond September 30, 2015.
SEC. 1403. DAIRY EXPORT INCENTIVE PROGRAM.
(a) Extension.--Subsection (a) of section 153 of the Food Security
Act of 1985 (15 U.S.C. 713a-14) 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 new paragraph:
``(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 (Public Law 99-198; 7 U.S.C. 1731 note) 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 set forth in subsection
(f); and''; and.
(2) in subsection (f), by striking paragraph (1) and
inserting the following new paragraph:
``(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 (Public Law 99-198; 7 U.S.C. 1731 note) during that
year.''.
SEC. 1404. REVISION OF FEDERAL MARKETING ORDER AMENDMENT PROCEDURES.
Subsection (17) of 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 to read as follows:
``(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) Advance notice of hearing.--Notice of a hearing upon
a proposed amendment to any order issued pursuant to this
section shall be given not less than 3 days before the date
fixed for the hearing, and such notice shall be deemed to be
due notice of the hearing.
``(C) Prompt response to requests for amendment hearings.--
Not more than 30 days after receipt of a written request for an
amendment hearing regarding a milk marketing order, the
Secretary shall--
``(i) issue a denial of the request; or
``(ii) issue notice of the hearing, which shall
begin no more than 60 days, and conclude no more than
90 days, after receipt of the request.
``(D) Submission and use of evidence.--The proponents of
any amendment proposed to be made to a milk marketing order
shall file with the Secretary all testimony and other evidence
in support of the amendment, in written form, at least 7
business days before the date fixed for the hearing. The
Secretary shall make such written testimony and other evidence
available to interested members of the public. Subject to any
evidentiary objections and cross examination of submitting
witness, the written testimony and evidence shall be entered
into evidence without being read at the hearing.
``(E) Issuance of decision.--The Secretary shall issue a
recommended decision on a proposed amendment to a milk
marketing order not later than 90 days after the date set by
the Administrative Law Judge for the submission of post-hearing
proposed findings and conclusions and written arguments or
briefs. The final decision shall be issued not later than 60
days after the date on which the recommended decision was
issued.
``(F) Avoiding duplication.--The Secretary shall not be
required to call a hearing on any amendment proposed to be made
to a milk marketing order in response to an application for a
hearing on such proposed amendment if the application
requesting the hearing is received by the Secretary within 90
days after the date on which the Secretary has announced the
decision on a previously proposed amendment to that order and
the two proposed amendments are essentially the same.''.
SEC. 1405. DAIRY INDEMNITY PROGRAM.
Section 3 of Public Law 90-484 (7 U.S.C. 450l) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 1406. EXTENSION OF MILK INCOME LOSS CONTRACT PROGRAM.
Section 1502(c)(3)(B) of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 7982(c)(3)(B)), as amended by section 9006(a) of the
U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq
Accountability Appropriations Act, 2007 (Public Law 110-28, 121 Stat.
217), is amended by striking ``2007'' and inserting ``2012''.
SEC. 1407. DAIRY PROMOTION AND RESEARCH PROGRAM.
(a) Extension of Promotion 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
new subsection:
``(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 new
paragraph:
``(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) Refund of Assessments on 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 is entitled to a
refund of any assessment paid under this subsection on
imported dairy products imported under a contract
entered into prior to July 26, 2007.
``(B) Expiration.--Refunds under paragraph (A)
shall expire one year after the date of the enactment
of the Farm, Nutrition, and Bioenergy Act of 2007.''.
SEC. 1408. REPORT ON DEPARTMENT OF AGRICULTURE REPORTING PROCEDURES FOR
NONFAT DRY MILK.
Not later than 90 days after the date of the enactment of this Act,
the Secretary of Agriculture shall submit to Congress a report
regarding Department of Agriculture reporting procedures for nonfat dry
milk and the impact of these procedures on Federal milk marketing order
minimum prices during the period beginning on July 1, 2006, and ending
on the date of the enactment of this Act.
SEC. 1409. FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.
(a) Establishment.--Subject to the availability of appropriations
to carry out this section, the Secretary of Agriculture shall establish
a commission to be known as the ``Federal Milk Marketing Order Review
Commission'', in this section referred to as the ``commission'', which
shall conduct a comprehensive review and evaluation of--
(1) the current Federal milk marketing order system; 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) increasing the responsiveness of the Federal milk
marketing order system to market forces;
(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, established during the Great Depression, continues to
serve the interests of the public, dairy processors, and dairy
farmers;
(7) evaluating whether Federal milk marketing orders are
operating in a manner to minimize costs to taxpayers and
consumers; and
(8) 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 18
members.
(2) Members.--As soon as practicable after the date on
which funds are first made available to carry out this section,
commission members shall be appointed as follows:
(A) Two members appointed by the Chairman of the
Committee on Agriculture of the House of
Representatives, in consultation with the ranking
member of the Committee on Agriculture of the House of
Representatives.
(B) Two members appointed by the Chairman of the
Committee on Agriculture, Nutrition, and Forestry of
the Senate, in consultation with the ranking member of
the Committee on Agriculture, Nutrition and Forestry of
the Senate.
(C) Fourteen members appointed by the Secretary of
Agriculture.
(3) Special appointment requirements.--In the case of the
members to be appointed under paragraph (2)(C), the Secretary
shall comply with the following requirements:
(A) At least one member shall represent a national
consumer organization.
(B) At least four members shall represent land-
grant universities or ASCARR institutions with
accredited dairy economic programs, with two of these
members being experts in the field of economics.
(C) At least one member shall represent the food
and beverage retail sector.
(D) Four dairy producer and four 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.
(4) Chair.--The commission shall elect one of its appointed
members to serve as chairperson for the duration of the
commission's proceedings.
(5) Vacancy.--Any vacancy occurring before the termination
of the commission shall be filled in the same manner as the
original appointment.
(6) Compensation.--Members of the commission shall serve
without compensation, but shall be reimbursed by the Secretary
of Agriculture from existing budget authority for necessary and
reasonable expenses incurred in the performance of the duties
of the commission.
(d) Report.--Not later than two years after the date of the first
meeting of the commission, the commission shall submit to the Secretary
of Agriculture and Congress a report setting forth 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. The report findings shall reflect, to the 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 non-binding.
(f) No Effect on Existing Programs.--The Secretary shall not allow
the existence of the commission to impede, delay, or otherwise affect
any decision making 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 such funds as
necessary from existing budget authority to carry out this
responsibility.
(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 immediately after
submission of the report under subsection (d).
Subtitle E--Administration
SEC. 1501. ADMINISTRATION GENERALLY.
(a) Use of Commodity Credit Corporation.--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.--Not later than 90 days after the date of
the enactment of this Act, the Secretary and the Commodity
Credit Corporation, as appropriate, shall promulgate such
regulations as are necessary to implement this title.
(2) Procedure.--The promulgation of the regulations and
administration of this title shall be made without regard to--
(A) chapter 35 of title 44, United States Code
(commonly known as the ``Paperwork Reduction Act'');
(B) the Statement of Policy of the Secretary of
Agriculture effective July 24, 1971 (36 Fed. Reg.
13804), relating to notices of proposed rulemaking and
public participation in rulemaking; and
(C) the notice and comment provisions of section
553 of title 5, United States Code.
(3) Congressional review of agency rulemaking.--In carrying
out this subsection, the Secretary shall use the authority
provided under section 808 of title 5, United States Code.
(d) Adjustment Authority Related to Trade Agreements Compliance.--
(1) Required determination; adjustment.--If the Secretary
determines that expenditures under subtitles A through E 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)), as in
effect on the date of enactment of this Act, 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.
SEC. 1502. 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. 1503. PAYMENT LIMITATIONS.
(a) Extension and Revision of Limitations.--
(1) Extension.--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 (other than in subsection (d)(1) of
section 1001 of such Act) and inserting ``Farm, Nutrition, and
Bioenergy Act of 2007''.
(2) Combination of limits.--Section 1001 of the Food
Security Act of 1985 (7 U.S.C. 1308) is amended by striking
subsections (b) and (c) and inserting the following new
subsections:
``(b) Limitation on Direct and Counter-Cyclical Payments for
Covered Commodities (other Than Peanuts).--
``(1) Direct payments.--The total amount of direct payments
received, directly or indirectly, by a person or any legal
entity (except a joint venture or a general partnership) in any
crop year under subtitle A of title I of the Farm, Nutrition,
and Bioenergy Act of 2007 for 1 or more covered commodities
(except for peanuts) may not exceed $60,000.
``(2) Counter-cyclical payments.--The total amount of
counter-cyclical payments received, directly or indirectly, by
a person or any legal entity (except a joint venture or a
general partnership in any crop year under subtitle A of title
I of the Farm, Nutrition, and Bioenergy Act of 2007 for one or
more covered commodities (except for peanuts) may not exceed
$65,000.
``(c) Limitation on Direct and Counter-Cyclical Payments for
Peanuts.--
``(1) Direct payments.--The total amount of direct payments
received, directly or indirectly, by a person or any legal
entity (except a joint venture or a general partnership) in any
crop year under subtitle A of title I of the Farm, Nutrition,
and Bioenergy Act of 2007 for peanuts may not exceed $60,000.
``(2) Counter-cyclical payments.--The total amount of
counter-cyclical payments received, directly or indirectly, by
a person or any legal entity (except a joint venture or a
general partnership in any crop year under subtitle A of title
I of the Farm, Nutrition, and Bioenergy Act of 2007 for peanuts
may not exceed $65,000.''.
(b) Direct Attribution.--Section 1001 of the Food Security Act of
1985 (7 U.S.C. 1308) is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (2) and (3) as
paragraphs (4) and (5), respectively; and
(B) by inserting after paragraph (1) the following
new paragraphs:
``(2) 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.
``(3) Person.--The term `person' means a natural person,
and does not include a legal entity.'';
(2) by striking subsections (d) through (e) and inserting
the following new subsections:
``(d) Attribution of Payments.--
``(1) In general.--In implementing subsections (b) and (c),
the Secretary shall issue such regulations as are necessary to
ensure that the total amount of payments are attributed to a
person by taking into account the direct and indirect ownership
interests of the person in a legal entity that is eligible to
receive such payments.
``(2) Payments to a person.--Every payment made directly to
a person shall be combined with the person's pro rata interest
in payments received by a legal entity in which the person has
a direct or indirect ownership interest.
``(3) Payments to a legal entity.--
``(A) In general.--Every payment made to a legal
entity shall be attributed to those persons who have a
direct or indirect ownership interest in the legal
entity.
``(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.--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.
``(4) Four levels of attribution for embedded entities.--
``(A) In general.--Attribution of payments made to
legal entities shall be traced through four levels of
ownership in entities.
``(B) First level.--Any payments made to a legal
entity (a first-tier 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 entity by the person.
``(C) Second level.--Any payments made to a first-
tier entity that is owned in whole or in part by
another legal entity (a second-tier entity) shall be
attributed to the second-tier entity in proportion to
the second-tier entity's ownership in the first-tier
entity. If the second-tier entity is owned in whole or
in part by a person, the amount of the payment made to
the first-tier entity shall be attributed to the person
in the amount that represents the indirect ownership in
the first-tier entity by the person.
``(D) Third and fourth levels.--The Secretary shall
attribute payments at the third and fourth tiers of
ownership in the same manner as specified in
subparagraph (C) unless the fourth-tier of ownership is
that of a fourth-tier entity and not that of a person,
in which case the Secretary shall reduce the amount of
the payment to be made to the first-tier entity in the
amount that represents the indirect ownership in the
first-tier entity by the fourth-tier entity.
``(e) Special Rules.--
``(1) Minor children.--Payments received by a child under
the age of 18 shall be attributed to the child's parents,
except that the Secretary shall issue regulations which provide
the conditions under which payments received by a child under
the age of 18 will not be attributed to the child's parents.
``(2) Marketing cooperatives.--Subsections (b) and (c)
shall not apply to a cooperative association of producers with
respect to commodities produced by its members which are
marketed by such association on behalf of its members but shall
apply to such producers as persons.
``(3) Trusts and estates.--
``(A) In general.--With respect to irrevocable
trusts and estates, the Secretary shall administer the
provisions of this subtitle in such manner as the
Secretary determines will ensure that fair and
equitable treatment of the beneficiaries of such trusts
and estates.
``(B) Irrevocable trust.--In order for a trust to
be considered an irrevocable trust, the terms of the
trust agreement must not allow for modification or
termination of the trust by the grantor, allow for the
grantor to have any future, contingent, or remainder
interest in the corpus of the trust, or provide for the
transfer of the corpus of the trust to the remainder
beneficiary in less than 20 years from the date the
trust is established except in cases where the transfer
is contingent on the remainder beneficiary achieving at
least the age of majority or is contingent on the death
of the grantor or income beneficiary.
``(C) Revocable trust.--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 is eligible to receive a payment described in
subsection (b) only if the tenant makes a significant
contribution of equipment used in the farming
operation.
``(5) Federal agencies.--
``(A) In general.--Federal agencies shall not be
eligible to receive any payment described in subsection
(b) or (c).
``(B) Rents land.--A person or legal entity that
rents land owned by a Federal agency may receive such
payments.
``(6) State and local governments.--
``(A) Governments ineligible.--
``(i) In general.--Except as provided in
subparagraphs (B) and (C), State and local
governments and political subdivisions and
agencies of such governments, shall not be
eligible to receive payments described in
subsections (b) and (c).
``(ii) Tenants.--A person or legal entity
that rents land owned by a State or local
government or a political subdivision or agency
of such government, may receive payments
described in subsections (b) and (c) if they
otherwise meet all applicable criteria.
``(B) Exception.--
``(i) In general.--Within the limitation
described in clause (ii), a State and the
political subdivisions and agencies of such
governments, may receive payments described in
subsections (b) and (c), if the State or a
political subdivision or agency of such
government--
``(I) is the producer of all crops
produced on a farm; and
``(II) the proceeds from the crop
production are used to maintain a
public school.
``(ii) Limitation.--For each State, the
total amount of payments described in
subsections (b) and (c) that are received
collectively by the State and all political
subdivisions or agencies of such governments
shall not exceed the amounts that one legal
entity may receive in one year as specified in
subsections (b) and (c).
``(C) Share leases.--A State and the political
subdivisions and agencies of such governments may,
without regard to the provisions of subparagraph (B),
receive payments described in subsections (b) and (c)
if--
``(i) the payments are received with
respect to land that is share leased to a
private party;
``(ii) the lease was in effect on the date
of enactment of the Farm, Nutrition, and
Bioenergy Act of 2007; and
``(iii) the land is used to maintain a
public school.
``(7) Changes in farming operations.--In the administration
of this subtitle, 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. 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) Denial of program benefits.--
``(A) Two year denial of payment.--A person or
legal entity shall be ineligible to receive payments
specified in subsections (b) and (c) for that year, and
the succeeding crop year, in which the Secretary
determines that the person or entity engaged in an
activity in which the primary purpose of the activity
was to avoid the application of the provisions of this
subtitle to the person, legal entity or any other
person or legal entity.
``(B) Extended ineligibility.--If the Secretary
determines that a person or legal entity, for their
benefit or the benefit of any other person or legal
entity, has knowingly engaged in, or aided in the
creation of fraudulent documents, failed to disclose
material information relevant to the administration of
this subtitle requested by the Secretary, or committed
other equally serious actions as identified in
regulations issued by the Secretary, the Secretary may
for a period not to exceed five crop years deny the
issuance of payments to the person or legal entity.
``(C) Pro rata denial.--Payments otherwise owed to
a person or legal entity covered by subparagraphs (A)
or (B) shall be denied in a pro rata manner based upon
the ownership interest of the person or legal entity in
a farm, and payments otherwise payable to the person or
legal entity who is a cash rent tenant on a farm owned
or under the control of such person or legal entity
shall be denied.
``(9) Death of owner.--In the event of a transfer of any
ownership interest in land or a commodity as the result of the
death of a program participant, the new owner of such land or
commodity may, if such person is otherwise eligible to
participate in the applicable program, succeed to the prior
owner's contract and receive payments subject to this section
without regard to the amount of payments received by the new
owner. Payments made pursuant to this subsection shall not
exceed the amount to which the previous owner was entitled to
receive under the terms of the contract at the time of the
death of the prior owner.''.
(c) Repeal of Three-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
new subsection:
``(a) Notification of Interests.--To facilitate administration of
sections 1001 and this section, each entity or person receiving
payments described in subsections (b) and (c) of section 1001 as a
separate person shall provide to the Secretary of Agriculture, at such
times and in such manner as prescribed by the Secretary, the name and
social security number of each individual, or the name and taxpayer
identification number of each entity, that holds or acquires an
ownership interest in such separate person and shall provide such
information regarding each entity in which such separate person 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 new subsections:
``(b) Actively Engaged.--
``(1) In general.--To be eligible to receive a payment
described in subsections (b) and (c) of section 1001, a person
or legal entity must be actively engaged in farming 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 farm 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 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 entity as determined by the
Secretary shall be considered as actively engaged in
farming with respect to a farming operation if--
``(i) the 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 paragraph (A), as applied to
the entity, are met by the 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 paragraph (A), as applied to the entity, are
met by the 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 the landowner receives rent
or income for such use of the land based on the land's
production or the operation's operating results, and the person
or legal entity meets the standard provided in clauses (ii) and
(iii) of subsection (b)(2)(A).
``(2) Adult family member.--With respect to a farming
operation when a majority of the participants 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) 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 such 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 person or legal entity
receiving custom farming services will be considered separately
eligible for payment limitation purposes if such person or
legal entity is actively engaged in farming based on subsection
(b)(2) or paragraphs (1) through (5) of this subsection. No
other rules with respect to custom farming shall apply in
making a determination under this section.
``(6) Spouse.--Where one spouse is determined to be
actively engaged, the other spouse shall be determined to have
met the requirements of subclause (II) of subsection
(b)(2)(A)(i) of this section.
``(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 such use of
the land.
``(2) Other persons.--Any other person determined by the
Secretary as failing to meet the standards set out in
subsections (b)(2) and (c) shall not be considered to be
actively engaged in farming with respect to a farming
operation.''.
(e) Transition.--Section 1001 of the Food Security Act of 1985 (7
U.S.C. 1308), as in effect on the day before the date of the enactment
of this Act, shall continue to apply with respect to the 2007 crop of
any covered commodity.
SEC. 1504. ADJUSTED GROSS INCOME LIMITATION.
(a) Extension of Adjusted Gross Income Limitation.--Section 1001D
of the Food Security Act of 1985 (7 U.S.C. 1308-3a) is amended--
(1) in subsection (b)(2), by striking ``Farm Security and
Rural Investment Act of 2002'' each place it appears and
inserting ``Farm, Nutrition, and Bioenergy Act of 2007''; and
(2) in subsection (e), by striking ``2007'' and inserting
``2012''.
(b) Modification of Limitation.--Section 1001D(b) of the Food
Security Act of 1985 (7 U.S.C. 1308-3a(b)) is amended--
(1) by striking paragraph (1) and inserting the following
new paragraph:
``(1) Caps.--
``(A) Upper limit.--Notwithstanding any other
provision of law, an individual or entity shall not be
eligible to receive any benefit described in paragraph
(2) during a crop year if the average adjusted gross
income of the individual or entity exceeds $1,000,000.
``(B) Producer exemption.--Notwithstanding any
other provision of law, an individual or entity shall
not be eligible to receive any benefit described in
paragraph (2) during a crop year if the average
adjusted gross income of the individual or entity
exceeds $500,000, unless not less than 66.66 percent of
the average adjusted gross income of the individual or
entity is derived from farming, ranching, or forestry
operations, as determined by the Secretary.'';
(2) in paragraph (2)(A), by striking ``or C''; and
(3) by adding at the end the following new paragraph:
``(3) Income derived from farming, ranching or forestry
operations.--In determining what portion of the average
adjusted gross income of an individual or entity is derived
from farming, ranching, or forestry operations, the Secretary
shall include income derived from the following:
``(A) The production of crops, livestock, or
unfinished raw forestry products.
``(B) The sale, including the sale of easements and
development rights, of farm, ranch, or forestry land or
water rights.
``(C) The sale, but not as a dealer, of equipment
purchased to conduct farm, ranch, or forestry
operations when the equipment is otherwise subject to
depreciation expense.
``(D) The rental of land used for farming,
ranching, or forestry operations.
``(E) The provision of production inputs and
services to farmers, ranchers, and foresters.
``(F) The processing, storing, and transporting of
farm, ranch, and forestry commodities.
``(G) The sale of land that has been used for
agriculture.''.
SEC. 1505. ADJUSTMENTS OF LOANS.
Section 162 of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7282) is amended--
(1) in subsection (a), by inserting ``(except for cotton
and long grain, medium grain, and short grain rice)'' after
``commodity'';
(2) in subsection (b), by striking ``Farm Security and
Rural Investment Act of 2002'' and inserting ``Farm, Nutrition,
and Bioenergy Act of 2007''; and
(3) by adding at the end the following new subsections:
``(d) Adjustment in Loan Rate for Cotton.--
``(1) Adjustment authority.--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) Revision.--Within 180 days after the date of
the enactment of the Farm, Nutrition, and Bioenergy Act
of 2007, the Secretary, after consultation with the
private sector as provided in paragraph (3), 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.--The revisions required
under subparagraph (A) shall include the following:
``(i) The elimination or adjustment of
warehouse location differentials to reflect
market conditions.
``(ii) The establishment of differentials
for the various quality factors and staple
lengths of cotton based on a three-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;
``(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 one better than the applicable
color grade.
``(C) Discretionary revisions.--The revisions under
subparagraph (A) may include, at a minimum, the
following:
``(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 such
premiums or discounts.
``(iii) Such other adjustments determined
appropriate by the Secretary, after
consultations conducted in accordance with
paragraph (3).
``(3) Consultation with private sector.--
``(A) Prior to revision.--Prior to implementing any
revisions to the administration of the marketing
assistance loan program for upland cotton, the
Secretary should endeavor to consult with an existing
private sector committee whose membership includes
representatives of the production, ginning,
warehousing, cooperative, and merchandising segments of
the United States cotton industry and that has
developed recommendations concerning such revisions.
``(B) Upon review.--The Secretary shall also
consult with the committee referred to in subparagraph
(A) when conducting a review of adjustments in the
operation of the loan program as provided in paragraph
(4).
``(C) Inapplicability of federal advisory committee
act.--The Federal Advisory Committee Act (5 U.S.C.
App.) shall not apply to consultations under this
paragraph with the committee referred to in
subparagraph (A).
``(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, by either revoking or
revising the actions taken pursuant to paragraph (2)(B) or by
revoking or revising any actions taken or authorized to be
taken under paragraph (2)(B).
``(5) Adjustments in effect prior to revision.--The quality
differences (premiums and discounts for quality factors)
applicable to the upland cotton loan program (prior to any
revisions in accordance with this subsection) shall be
established by the Secretary by giving equal weight--
``(A) to loan differences for the preceding crop;
and
``(B) to market differences for such crop in the
designated United States spot markets.
``(e) Rice Limitation.--With respect to long grain rice and medium
and short grain rice, the Secretary shall not make adjustments in the
loan rates for such commodities, except for differences in grade and
quality (including milling yields).''.
SEC. 1506. 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 ``Farm Security and
Rural Investment Act of 2002'' each place it appears and inserting
``Farm, Nutrition, and Bioenergy Act of 2007''.
SEC. 1507. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY REGARDING
LOANS.
Section 166 of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7286) is amended in subsections (a) and (c)(1) by
striking ``subtitle B and C of title I of the Farm Security and Rural
Investment Act of 2002'' each place it appears and inserting ``subtitle
B of title I of the Farm, Nutrition, and Bioenergy Act of 2007''.
SEC. 1508. ASSIGNMENT OF PAYMENTS.
(a) In General.--The provisions of section 8(g) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), relating
to assignment of payments, shall apply to payments made under the
authority of 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. 1509. TRACKING OF BENEFITS.
As soon as practicable after the date of enactment of this Act, the
Secretary shall track the benefits provided, directly or indirectly, to
individuals and entities under titles I and II and the amendments made
by those titles.
SEC. 1510. UPLAND COTTON STORAGE PAYMENTS.
Beginning with the 2011 crop of upland cotton, the Secretary may
not use the funds of the Commodity Credit Corporation to pay storage,
handling, and other costs associated with the storage of upland cotton
for which a marketing assistance loan is made under section 1201.
SEC. 1511. GOVERNMENT PUBLICATION OF COTTON PRICE FORECASTS.
Section 15 of the Agricultural Marketing Act (12 U.S.C. 1141j) is
amended by striking subsection (d).
SEC. 1512. PREVENTION OF DECEASED PERSONS RECEIVING PAYMENTS UNDER FARM
COMMODITY PROGRAMS.
(a) Identification of Erroneous Payments Made to Deceased
Persons.--The Secretary of Agriculture shall--
(1) undertake a study to identify any estate of a deceased
person that continued to receive payments under this title for
more than two crop years after the death of the person; and
(2) submit a report containing the results of the study to
Congress.
(b) Notification.--The Secretary shall issue regulations that
specify deadlines by which a legal entity must notify the Secretary of
any change in ownership of such entity, including the death of a person
with a direct or indirect ownership interest in the entity, that may
affect the entity's eligibility to receive payments or other benefits
under this title. The Secretary may deny the issuance of such payments
or benefits to an entity that fails to comply with such regulations.
(c) Recoupment.--If the Secretary determines that the estate of a
deceased person failed to timely notify the Farm Service Agency of the
death, the Secretary shall recoup the erroneous payments made on behalf
of the deceased person. The Secretary shall withhold payments that
would otherwise be made under this title to farming operations in which
the deceased person was actively engaged in farming before death until
the funds have been recouped.
(d) Coordination.--The Secretary shall, twice a year, reconcile
individual tax identification numbers with the Internal Revenue Service
for recipients of payments under this title to determine recipients'
living status.
TITLE II--CONSERVATION
Subtitle A--Conservation Programs of the Food Security Act of 1985
Sec. 2101. Conservation reserve program.
Sec. 2102. Wetlands reserve program.
Sec. 2103. Conservation security program.
Sec. 2104. Grassland reserve program.
Sec. 2105. Environmental quality incentives program.
Sec. 2106. Regional water enhancement program.
Sec. 2107. Grassroots source water protection program.
Sec. 2108. Conservation of private grazing land.
Sec. 2109. Great Lakes basin program for soil erosion and sediment
control.
Sec. 2110. Farm and ranchland protection program.
Sec. 2111. Farm viability program.
Sec. 2112. Wildlife habitat incentive program.
Subtitle B--Conservation Programs Under Other Laws
Sec. 2201. Agricultural management assistance program.
Sec. 2202. Resource Conservation and Development Program.
Sec. 2203. Small watershed rehabilitation program.
Subtitle C--Additional Conservation Programs
Sec. 2301. Chesapeake Bay program for nutrient reduction and sediment
control.
Sec. 2302. Voluntary public access and habitat incentive program.
Subtitle D--Administration and Funding
Sec. 2401. Funding of conservation programs under Food Security Act of
1985.
Sec. 2402. Improved provision of technical assistance under
conservation programs.
Sec. 2403. Cooperative conservation partnership initiative.
Sec. 2404. Regional equity and flexibility.
Sec. 2405. Administrative requirements for conservation programs.
Sec. 2406. Annual report on participation by specialty crop producers
in conservation programs.
Sec. 2407. Promotion of market-based approaches to conservation.
Sec. 2408. Establishment of State technical committees and their
responsibilities.
Sec. 2409. Payment limitations.
Subtitle E--Miscellaneous Provisions
Sec. 2501. Inclusion of income from affiliated packing and handling
operations as income derived from farming
for application of adjusted gross income
limitation on eligibility for conservation
programs.
Sec. 2502. Encouragement of voluntary sustainability practices
guidelines.
Sec. 2503. Farmland resource information.
Subtitle A--Conservation Programs of the Food Security Act of 1985
SEC. 2101. CONSERVATION RESERVE PROGRAM.
(a) Authorization and Eligible Land.--Section 1231 of the Food
Security Act of 1985 (16 U.S.C. 3831) is amended--
(1) in subsection (a)--
(A) by striking ``2007'' and inserting ``2012'';
and
(B) by inserting before the period the following:
``and to address issues raised by State, regional, and
national conservation initiatives''; and
(2) in subsection (b)--
(A) in paragraph (1)(B)--
(i) by striking ``the Farm Security and
Rural Investment Act of 2002'' and inserting
``the Farm, Nutrition, and Bioenergy Act of
2007''; and
(ii) by striking the period at the end and
inserting a semicolon; and
(B) in paragraph (4), by striking the semicolon at
the end of subparagraph (E) and inserting ``; or''.
(b) Maximum Enrollment.--Section 1231(d) of the Food Security Act
of 1985 (16 U.S.C. 3831(d)) is amended by striking ``2007'' and
inserting ``2012''.
(c) 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''.
(d) 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.''.
(e) Pilot Program for Enrollment of Wetland and Buffer Acreage in
Conservation Reserve.--Section 1231(h)(1)(A) of the Food Security Act
of 1985 (16 U.S.C. 3831(h)(1)(A)) is amended by striking ``2007'' and
inserting ``2012''.
(f) Managed Haying and Grazing.--Section 1232(a)(7) of the Food
Security Act of 1985 (16 U.S.C. 3832(a)(7)) is amended--
(1) in subparagraph (A)--
(A) by inserting ``and prescribed grazing for the
control of invasive species'' after ``biomass''; and
(B) by striking ``and'' at the end of the
subparagraph;
(2) by redesignating subparagraph (B) as subparagraph (D);
and
(3) by inserting after subparagraph (A) the following new
subparagraph:
``(B) managed grazing during the year, except that
in permitting such grazing, the Secretary shall--
``(i) reduce the rental payment otherwise
payable under the contract by a percentage
determined by the Secretary to be appropriate;
and
``(ii) require a management plan, including
a grazing rate, approved by the Secretary that
is consistent with section 1231(a);
``(C) dryland crop production and grazing practices
on acreage enrolled into the conservation reserve
enhancement program announced on May 27, 1998 (63 Fed.
Reg. 28965) where the conservation reserve enhancement
program is initiated to address declining groundwater
or surface water resources and water quality issues
associated with declining groundwater or surface water
resources and the conservation reserve enhancement
contract requires the owner or operator to retire a
water right, except that in permitting dryland crop
production and grazing, the Secretary shall--
``(i) develop an appropriate working lands
conservation plan that implements conservation
practices suitable to the region to address
soil conservation, water quality, wildlife
habitat, or other environmental benefits;
``(ii) apply the provisions of section
11005 of the Farm, Nutrition, and Bioenergy Act
of 2007 in determining the eligibility for crop
insurance of dryland crop production and
grazing activities allowed under a conservation
reserve enhancement contract for the purposes
of this section, dryland crop production and
grazing activities allowed under a conservation
reserve enhancement contract shall be
considered `noncropland' in applying the
provisions of section 11005 of the Farm,
Nutrition, and Bioenergy Act of 2007;
``(iii) reduce the rental payment otherwise
payable under the contract by an amount
commensurate with the economic value of the
crop production or grazing activity, while
still leaving sufficient financial incentives
for the owner or operator to participate in the
conservation reserve enhancement; and
``(iv) at the request of a State that has
previously entered into a conservation reserve
enhancement program agreement, renegotiate the
agreement to allow for the dryland crop
production and grazing in accordance with this
section; and''.
(g) Rental Rates.--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) County average market dry-land and irrigated cash
rental rates.--
``(A) Annual estimates.--Beginning not later than
one year after the date of the enactment of the Farm,
Nutrition, and Bioenergy Act of 2007, the National
Agricultural Statistics Service shall conduct an annual
survey of per acre estimates of county average market
dry-land and irrigated cash rental rates for cropland
and pastureland in all counties or equivalent
subdivisions within each State with 20,000 acres or
more of cropland and pastureland.
``(B) Public availability of estimates.--The
estimates derived as a result of the annual survey
conducted under subparagraph (A) shall be maintained on
a website of the Department of Agriculture for use by
the general public.''.
(h) Conservation Reserve Program Transition Incentives.--Section
1235 of the Food Security Act of 1985 (16 U.S.C. 3835) is amended--
(1) in subsection (c)(1)(B)--
(A) in clause (ii), by striking ``or'' at the end;
(B) by redesignating clause (iii) as clause (iv);
and
(C) 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, socially disadvantaged
farmer or rancher, or limited resource farmer
or rancher for the purpose of returning some or
all of the land into production using
sustainable grazing or crop production methods;
or''; and
(2) 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 of
land subject to a contract from a retired or retiring owner or
operator under subsection (c)(1)(B)(iii) to a beginning farmer
or rancher, socially disadvantaged farmer or rancher, or
limited resource 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,
at the election of 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 comprehensive conservation plan
that meets such sustainability criteria as the
Secretary may establish;
``(D) provide to the covered farmer or rancher an
opportunity to enroll in the conservation security
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 to a
beginning farmer or rancher, socially disadvantaged farmer or
rancher, or limited resource farmer or rancher described in
paragraph (1) the option to reenroll any applicable partial
field conservation practice that is--
``(A) eligible for enrollment under the continuous
signup requirement of section 1231(h)(4)(B); and
``(B) part of an approved comprehensive
conservation plan.''.
(i) Early Termination.--Section 1235(e)(1) of the Food Security Act
of 1985 (16 U.S.C. 3835(e)(1)) is amended by striking ``before January
1, 1995,''.
(j) Exceptions to Early Termination.--Section 1235(e)(2) of the
Food Security Act of 1985 (16 U.S.C. 3835(e)(2)) is amended by adding
at the end the following new subparagraph:
``(D) Land enrolled under continuous signup.''.
SEC. 2102. WETLANDS RESERVE PROGRAM.
(a) Establishment and Purpose.--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--
``(A) to restore, to create, to protect, or to
enhance wetlands on lands that are eligible under
subsections (c) and (d); and
``(B) to authorize the Secretary, at the sole
discretion of the Secretary, to purchase flood-plain
easements.''.
(b) Maximum Enrollment.--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
3,605,000 acres.''; and
(2) by adding at the end the following new paragraphs:
``(3) Annual enrollment goal.--Of the total number of acres
authorized by paragraph (1), to the maximum extent practicable,
the Secretary shall enroll 250,000 acres in each fiscal year.
``(4) Flood-plain easements.--Of the acres to be enrolled
each fiscal year, not more than 10,000 acres may be enrolled
using flood-plain easements.''.
(c) Eligible Lands.--Subsection (c) of section 1237 of the Food
Security Act of 1985 (16 U.S.C. 3837) is amended to read as follows:
``(c) Eligibility.--For purposes of enrolling land into the wetland
reserve program established under this subchapter during the 2008
through 2012 fiscal years, land shall be eligible to be placed into
such reserve if the Secretary determines that--
``(1) in the case of wetlands--
``(A) the land maximizes wetland values and
functions and wildlife benefits;
``(B) the land is farmed wetland or converted
wetland, together with adjacent lands that are
functionally dependent on such wetlands, except that
converted wetlands where the conversion was not
commenced prior to December 23, 1985, shall not be
eligible to be enrolled in the program under this
section;
``(C) the likelihood of the successful restoration
of such land, and the resultant wetland values, merit
inclusion of the land into the program taking into
consideration the cost of such restoration; and
``(D) the land consists of riparian areas,
including areas that link wetlands that are protected
by easements or some other device or circumstance that
achieves the same purpose as an easement; or
``(2) in the case of flood-plain lands--
``(A) the flood-plain land has been damaged by
flooding at least once within the previous calendar
year, or has been subject to flood damage at least
twice within the previous 10 years; or
``(B) the enrollment of other land within the flood
plain would contribute to the restoration of the flood
storage and flow or erosion control.''.
(d) Ineligible Lands.--Subsection (e) of section 1237 of the Food
Security Act of 1985 (16 U.S.C. 3837) is amended to read as follows:
``(e) Ineligible Land.--The Secretary may not acquire easements
on--
``(1) in the case of wetlands--
``(A) land that contains timber stands established
under the conservation reserve under subchapter B; or
``(B) pasture land established to trees under the
conservation reserve under subchapter B; or
``(2) in the case of flood-plain lands--
``(A) land on which implementation of restoration
practices would not be productive; or
``(B) land that is subject to an existing easement
or deed restriction, and the easement or deed provides
sufficient protection or restoration of the flood
plain's functions and values, as determined by the
Secretary.''.
(e) Easements and Agreements.--Section 1237A of the Food Security
Act of 1985 (16 U.S.C. 3837a) is amended--
(1) in subsection (a)(2), by inserting ``if applicable,''
after ``(2)'';
(2) in subsection (b)--
(A) in the matter before paragraph (1), by
inserting ``or flood-plain land'' after ``values of
wetland'';
(B) in paragraph (1)(B), by inserting ``or flood-
plain land'' after ``wetland''; and
(C) in paragraph (3), by inserting ``or flood-plain
lands'' after ``wetlands'';
(3) by striking subsection (f) and inserting the following
new subsection:
``(f) Compensation.--Compensation for easements acquired by the
Secretary under this subchapter shall be made in cash in such amount as
agreed to and specified in the easement agreement. Lands may be
enrolled through the submission of bids under a procedure established
by the Secretary. Commendation may be provided in not less than 5, nor
more than 30, annual payments of equal or unequal size, as agreed to by
the owner and the Secretary based on the following option that results
in the lowest amount of compensation to be paid by the Secretary:
``(1) A percentage of the fair market value based on the
Uniform Standards for Professional Appraisals Procedures, as
determined by the Secretary or a percentage of the market value
determined by an area-wide market survey.
``(2) A geographic cap, prescribed in regulations issued by
the Secretary.
``(3) The offer made by the landowner.''; and
(4) by adding at the end the following new subsection:
``(h) Acceptance of Contributions.--The Secretary may accept and
use contributions of non-Federal funds to administer the program under
this subchapter.''.
(f) Duties of the Secretary.--Section 1237C of the Food Security
Act of 1985 (16 U.S.C. 3837c) is amended--
(1) in subsection (a)(1)--
(A) by inserting ``including necessary maitenance
activities,'' after ``values,''; and
(B) by inserting ``or flood plains land'' after
``wetland''; and
(2) by striking subsection (c) and inserting the following
new subsection:
``(c) Ranking of Offers.--
``(1) In general.--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) Conservation benefits.--In determining the
acceptability of easement offers, the Secretary may take into
consideration--
``(A) in the case of wetlands--
``(i) the extent to which the purposes of
the easement program would be achieved on the
land;
``(ii) the productivity of the land; and
``(iii) the on-farm and off-farm
environmental threats if the land is used for
the production of agricultural commodities; and
``(B) in the case of flood-plain lands--
``(i) the extent to which the purposes of
the easement program would be achieved on the
land;
``(ii) whether the land has been repeatedly
flooded over the last ten years;
``(iii) the extent to which an easement on
the flood-plain land would contribute to the
restoration or management of land in the area
surrounding the flood-plain land; and
``(iv) other factors, as determined by the
Secretary.''.
(g) 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) and inserting the following new paragraph:
``(4) Wetlands reserve enhancement.--
``(A) In general.--The provisions of this
subchapter that limit payments to any person, and
section 1305(d) of the Agricultural Reconciliation Act
of 1987 (Public Law 100-203; 7 U.S.C. 1308 note), shall
not apply to payments received by a State, political
subdivision, or agency thereof in connection with
agreements entered into under a special wetlands
reserve enhancement program carried out by that entity
that has been approved by the Secretary.
``(B) Agreements.--The Secretary may enter into
agreements with States (including political
subdivisions and agencies of States) regarding payments
described in subparagraph (A) that the Secretary
determines will advance the purposes of this
subchapter.''.
(h) Authorization.--The Food Security Act of 1985 is amended by
inserting after section 1237F (16 U.S.C. 3837f) the following new
section:
``SEC. 1237G. PERIOD OF AUTHORIZATION.
``This subchapter is authorized to be carried out for the 2008
through 2012 fiscal years.''.
SEC. 2103. CONSERVATION SECURITY PROGRAM.
(a) Establishment of New Conservation Security Program Through
2017.--Subchapter A of chapter 2 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3838 et seq.) is amended to read as
follows:
``Subchapter A--Conservation Security Program
``SEC. 1238. DEFINITIONS.
``In this subchapter:
``(1) Beginning farmer or rancher.--The term `beginning
farmer or rancher' has the meaning given the term under section
343(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1991(a)).
``(2) Conservation plan.--The term `conservation plan'
means a plan that--
``(A) identifies resources of concern, inventories
resources, and establishes benchmark data and
stewardship enhancement objectives;
``(B) describes improvements that will enable the
producer to meet and exceed the stewardship threshold
for all applicable resources of concern; and
``(C) contains a schedule and evaluation plan for
the planning, installing, maintaining, and managing new
conservation practices, activities, and management
measures and maintaining, managing, and improving
existing conservation practices, activities, and
management measures.
``(3) Conservation practice.--The term `conservation
practice' means a site-specific land management practice or
activity, or a supporting structural practice, that is part of
an implemented management system designed to address a priority
resource of concern.
``(4) Conservation security contract.--The term
`conservation security contract' means a contract entered into
under this subchapter.
``(5) Conservation security program.--The term
`conservation security program' means the program established
under section 1238A(a).
``(6) Management intensity.--The term `management
intensity' means the degree, scope, and comprehensiveness of
conservation practices, activities, or management measures
taken by a producer to address a priority resource of concern
to a level exceeding the stewardship threshold.
``(7) Nondegradation standard.--The term `nondegradation
standard' means the level of natural resource conservation and
environmental management measures required to improve and
sustain the status and condition of natural and environmental
resources to a level that, as determined by the Secretary--
``(A) prevents impairment of soil, water, and air
quality and the quality of fish and wildlife habitat;
and
``(B) sustains the long-term productivity of
agricultural resources.
``(8) Priority resource of concern.--The term `priority
resource of concern' means a resource of concern identified by
the Secretary, consistent with the requirements of section
1238C(a), that must be addressed by participants in the
conservation security program in a particular watershed or
other area within that State.
``(9) Producer.--The term `producer' means an owner,
operator, landlord, tenant, or sharecropper that--
``(A) shares in the risk of producing any crop or
livestock; and
``(B) is entitled to share in the crop or livestock
available for marketing from a farm (or would have
shared had the crop or livestock been produced).
``(10) Resource-specific index.--The term `resource-
specific index' means an index of management intensity or other
similar index, developed by the Secretary, that estimates the
expected level of resource and environmental outcomes of the
conservation practices, activities, and management measures
employed by a producer.
``(11) Socially disadvantaged farmer or rancher.--The term
`socially disadvantaged farmer or rancher' has the meaning
given the term under section 355(e) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2003(e)).
``(12) Structural practice.--The term `structural practice'
means a site-specific, constructed conservation practice that
is integrated with and essential to the successful
implementation of the system of land management practices and
activities that are the basis of a conservation security
contract.
``SEC. 1238A. CONSERVATION SECURITY PROGRAM.
``(a) Establishment and Purpose.--The Secretary shall establish,
and for each of fiscal years 2012 through 2017, carry out a
conservation security program to assist producers in improving
environmental quality by addressing priority resources of concern in a
comprehensive manner.
``(b) Eligible Producers.--To be eligible to participate in the
conservation security program, a producer shall--
``(1) demonstrate that the producer is addressing at least
one priority resource of concern to a minimum level of
management intensity determined by the Secretary; and
``(2) develop and submit to the Secretary, and obtain the
approval of the Secretary of, a conservation offer.
``(c) Eligible Land.--
``(1) In general.--Except as provided in paragraph (2),
private agricultural land (including cropland, grassland,
prairie land, improved pasture land, forest land and rangeland)
and land under the jurisdiction of an Indian tribe (as defined
by the Secretary) shall be eligible for enrollment in the
conservation security program.
``(2) Exclusions.--
``(A) Land enrolled in other conservation
programs.--Except as provided in subsection (f)(3)(A),
the following lands are not eligible for enrollment in
the conservation security program:
``(i) Lands enrolled in the conservation
reserve program under subchapter B of chapter
1.
``(ii) Land enrolled in the wetlands
reserve program established under subchapter C
of chapter 1.
``(iii) Land enrolled in the grassland
reserve program established under subchapter C
of chapter 2.
``(B) Conversion to cropland.--Land used for crop
production after October 1, 2011, that had not been
planted, considered to be planted, or devoted to crop
production for at least 4 of the 6 years preceding that
date (except for land enrolled in the conservation
reserve program or that has been maintained using long-
term crop rotation practices, as determined by the
Secretary) shall not be the basis for any payment under
the conservation security program.
``(d) Economic Uses.--With respect to eligible land covered by a
conservation security contract, the Secretary shall permit economic
uses of the land that--
``(1) maintain the agricultural nature of the land; and
``(2) are consistent with the conservation purposes of the
conservation security program.
``(e) Conservation Security Contracts.--
``(1) In general.--After a determination that a producer is
eligible for the conservation security program, and on approval
of the conservation offer of the producer, the Secretary shall
enter into a conservation security contract with the producer
to enroll the land to be covered by the contract in the
conservation security program.
``(2) Term.--A conservation security contract shall be for
a term of 5 years.
``(3) Agricultural operation.--All the acres of the
agricultural operation that are under the producer's effective
control at the time the producer enters into a conservation
security contract shall be covered by the conservation security
contract.
``(4) Provisions.--The conservation security contract of a
producer shall--
``(A) include a conservation plan approved by the
Secretary;
``(B) describe the land covered by the conservation
security contract;
``(C) state the amount of the stewardship
enhancement payment the Secretary agrees to make to the
producer each year of the conservation security
contract under section 1238C(c);
``(D) describe the new conservation practices and
activities the producer is required to implement during
the term of the conservation security contract in order
to increase the level of management intensity with
which the producer addresses a priority resource of
concern or priority resources of concern, as designated
by the Secretary under section 1238C(a)(1); and
``(E) include such other provisions as the
Secretary determines necessary to ensure the
conservation purposes of the conservation security
program are met.
``(5) On-farm research and demonstration or pilot
testing.--The Secretary may approve a conservation security
contract that includes--
``(A) on-farm conservation research and
demonstration activities; and
``(B) pilot testing of new technologies or
innovative conservation practices.
``(f) Modification.--The Secretary may allow a producer to modify a
conservation security contract before the expiration of the contract if
the Secretary determines that failure to modify the contract would
significantly interfere with achieving the purposes of the conservation
security program.
``(g) Contract Termination.--
``(1) Voluntary termination.--A producer may terminate a
conservation security contract if the Secretary determines that
termination of the contract would not defeat the purposes of
the conservation plan of the producer.
``(2) Involuntary termination.--The Secretary may terminate
a contract under this subchapter if the Secretary determines
that the producer violated the contract.
``(3) Transfer or change of interest in land subject to
conservation security contract.--
``(A) In general.--Except as provided in
subparagraph (B), the transfer, or change in the
interest, of a producer in land subject to a
conservation security contract shall result in the
termination of the conservation security contract.
``(B) Transfer of duties and rights.--Subparagraph
(A) shall not apply if, within a reasonable period of
time after the date of the transfer or change in the
interest in land, the transferee of the land provides
written notice to the Secretary that all duties and
rights under the conservation security contract have
been transferred to, and assumed by, the transferee.
The Secretary shall specify what will be considered a
reasonable period of time for purposes of providing the
notification required by this subparagraph.
``(h) Contract Renewal.--At the end of an initial conservation
security 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, including a demonstration that the producer
has complied with the schedule for the implementation of new
practices and activities included in the conservation security
contract and has met the stated goals for increasing the level
of management intensity with which the producer is addressing
the designated priority resource of concern or priority
resources of concern; and
``(2) agrees to implement and maintain such additional new
conservation practices and activities as the Secretary
determines necessary and feasible to achieve higher levels of
management intensity with which the producer addresses the
designated priority resource of concern or priority resources
of concern.
``(i) Effect of Noncompliance Due to Circumstances Beyond the
Control of Producers.--The Secretary shall include in the conservation
security contract a provision to ensure that a producer shall not be
considered in violation of a conservation security contract for failure
to comply with the conservation security contract due to circumstances
beyond the control of the producer, including a disaster or related
condition, as determined by the Secretary.
``(j) Evaluation of Offers.--In evaluating applications by
producers to enroll in the conservation security program, the Secretary
shall--
``(1) consider the extent to which the anticipated
environmental benefits from the contract are provided at least
cost relative to other similar activities;
``(2) consider the extent to which the producer proposes to
increase the level of performance on applicable resource-
specific indices or the level of management intensity with
which the producer addresses the designated priority resources
of concern;
``(3) consider the extent to which the environmental
benefits expected to result from the contract complements other
conservation efforts in the watershed or region;
``(4) consider the multiple benefits of conservation-based
farming systems, including resource-conservation crop
rotations, managed rotational grazing, and the adoption of
certified production under the national organic production
program under the Organic Foods Production Act of 1990 (7
U.S.C. 6501 et seq.); and
``(5) develop any additional criteria for evaluating
applications that the Secretary determines are necessary to
ensure that national, State, and local conservation priorities
are effectively addressed.
``(k) Coordination With Organic Certification.--Within 90 days
after the date of the enactment of the Farm, Nutrition, and Bioenergy
Act of 2007, the Secretary shall establish a transparent and producer-
friendly means by which producers may coordinate and simultaneously
certify eligibly under a conservation security contract and under the
national organic production program established under the Organic Foods
Production Act of 1990 (7 U.S.C. 6501 et seq.).
``SEC. 1238B. DUTIES OF PRODUCERS.
``(a) Agreement by Producer.--Under a conservation security
contract, a producer shall agree--
``(1) to implement during the term of the conservation
security contract the conservation plan approved by the
Secretary;
``(2) 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 security contract; and
``(3) not to engage in any activity during the term of the
conservation security contract that would interfere with the
purposes of the conservation security program.
``(b) Effect of Violation.--On the violation of a term or condition
of the conservation security contract of a producer--
``(1) if the Secretary determines that the violation
warrants termination of the conservation security contract, the
producer shall--
``(A) forfeit all rights to receive payments under
the conservation security contract; and
``(B) refund to the Secretary all or a portion of
the payments received by the producer under the
conservation security contract, including any advance
payments and interest on the payments, as determined by
the Secretary;
``(2) if the Secretary determines that the violation does
not warrant termination of the conservation security contract,
the producer shall refund to the Secretary, or accept
adjustments to, the payments provided to the producer, as the
Secretary determines to be appropriate; or
``(3) some combination of the remedies authorized by
paragraphs (1) and (2), as determined by the Secretary to be
appropriate.
``SEC. 1238C. DUTIES OF THE SECRETARY.
``(a) Identification of Priority Resources of Concern.--
``(1) Identification at state level.--The Secretary shall
ensure that the identification of priority resources of concern
is made at the State level so that each priority resource of
concern--
``(A) represents a significant environmental
concern, including watershed management or wildlife
habitat, in the State to which agricultural activities
are contributing; and
``(B) is likely to be addressed successfully
through the implementation of conservation practices
and other activities by producers.
``(2) Limitation.--The Secretary shall identify not more
than 5 resources of concern as priority resources of concern in
a particular watershed or other appropriate region or area
within a State.
``(3) Advice and consultation.--The Secretary, with the
advice of the appropriate State technical committee and in
consultation with Federal and State agencies with expertise
related to natural resources and environmental quality, shall
designate, to the extent practicable, each priority resource of
concern identified under paragraph (1) as either a primary,
secondary, or tertiary resource of concern.
``(b) Development of Resource-Specific Indices.--The Secretary
shall develop resource-specific indices to measure the management
intensity with which specific resources of concern are addressed, for
purposes of determining eligibility and payments for participants in
the conservation security program.
``(c) Stewardship Enhancement Payment.--
``(1) Timing of payment.--The Secretary shall make a
payment under a conservation security contract as soon as
practicable after October 1 of each fiscal year.
``(2) 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 practices and activities for
which there is no net cost or loss of income to the
producer, as determined by the Secretary.
``(3) Availability of payments.--The Secretary shall
provide a stewardship enhancement payment to a producer under a
conservation security contract to compensate the producer for--
``(A) ongoing implementation and maintenance of
conservation practices, activities, and management
measures in place on the producers operation at the
time the conservation security contract is accepted;
and
``(B) installation and adoption of new conservation
practices, activities, and management measures or
improvements to conservation practices, activities, and
management measures in place on the producer's
operation, as required by the conservation security
contract.
``(4) Payment amount.--The amount of the stewardship
enhancement payment shall be determined by the Secretary and
shall be based, to the maximum extent feasible, on--
``(A) a portion of the actual costs incurred by the
producer;
``(B) the income forgone by the producer; and
``(C) resource-specific indices, in any case in
which such indices have been developed and implemented.
``(d) Payment Limitations.--An individual or entity may not
receive, directly or indirectly, payments under a conservation security
contract that, in the aggregate, exceed $150,000 for the 5-year term of
the conservation security contract, excluding funding arrangements with
federally recognized Indian Tribes or Alaska Native Corporations.
``(e) Regulations.--The Secretary shall promulgate regulations
that--
``(1) provide for adequate safeguards to protect the
interests of tenants and sharecroppers, including provision for
sharing payments, on a fair and equitable basis; and
``(2) prescribe such other rules as the Secretary
determines to be necessary to ensure a fair and reasonable
application of the limitations established under subsection
(d).
``(f) Allocation to States.--When making allocations to States of
funds made available to carry out the conservation security program,
the Secretary shall give significant consideration to the extent and
magnitude of the environmental needs associated with agricultural
production in each State, the degree to which implementation of the
conservation security program in the State is, or will be, effective in
helping producers address these needs, and other considerations to
achieve equitable geographic distributions of funds, as determined by
the Secretary.
``(g) Technical Assistance.--For each of fiscal years 2008 through
2017, the Secretary shall provide appropriate technical assistance to
producers for the development and implementation of conservation
security contracts, in an amount not to exceed 15 percent of the
amounts expended for the fiscal year.
``(h) Data.--The Secretary shall maintain conservation security
program contract and payment data in a manner that provides detailed
and segmented data that allows for quantification of the amount of
payments made to producers for--
``(1) the maintenance of conservation practices,
activities, and management measures in place on the producer's
operation at the time the conservation security offer is
accepted by the Secretary;
``(2) the installation and adoption of new conservation
practices, activities, and management measures and the
improvements to conservation practices, activities, and
management measures in place on the producer's operation at the
time the conservation security offer is accepted by the
Secretary;
``(3) participation in research, demonstration, and pilot
projects; and
``(4) the development and periodic assessment and
evaluation of comprehensive conservation plans.''.
(b) Effect on Existing Conservation Security Contracts.--Subchapter
A of chapter 2 of subtitle D of title XII of the Food Security Act of
1985 (16 U.S.C. 3838 et seq.), as in effect on the day before the date
of the enactment of this Act, shall continue to apply to conservation
security contracts entered into before October 1, 2007. The Secretary
of Agriculture may continue to make payments under such subchapter, as
so in effect, with respect to such a conservation security contracts
during the term of the contract.
(c) Prohibition on New Contracts.--A conservation security contract
may not be entered into or renewed under subchapter A of chapter 2 of
subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C.
3838 et seq.), as in effect on the day before the date of the enactment
of this Act, after September 30, 2007.
SEC. 2104. GRASSLAND RESERVE PROGRAM.
(a) Enrollment Priority.--Subsection (b) of section 1238N of the
Food Security Act of 1985 (16 U.S.C. 3838n) is amended by striking
paragraph (3) and inserting the following new paragraph:
``(3) Priority for long-term agreements and easements.--Of
the total number of acres enrolled in the program at any one
time through the methods described in paragraph (2)(A), the
Secretary shall ensure that at least 60 percent of the acres
were enrolled through the use of 30-year rental agreements and
permanent and long-term easements described in clause (ii) of
such paragraph.''.
(b) Enrollment of Acreage.--Subsection (b) of section 1238N of the
Food Security Act of 1985 (16 U.S.C. 3838n) is amended by striking
paragraph (1) and inserting the following new paragraph:
``(1) Enrollment.--The Secretary shall enroll an additional
1,340,000 acres of restored or improved grassland, rangeland,
and pastureland in the grassland reserve program during fiscal
years 2008 through 2012.''.
(c) Enrollment of Conservation Reserve Program Land.--Section 1238N
of the Food Security Act of 1985 (16 U.S.C. 3838n) is amended by adding
at the end the following new subsections:
``(d) Enrollment of Conservation Reserve Program Land.--
``(1) Enrollment authorized.--Subject to the eligibility
requirements of subsection (c) and all other requirements of
this subchapter, land enrolled in the conservation reserve
program may be enrolled in the grassland reserve program if the
Secretary determines that the land is of high ecological value
and under significant threat of conversion to other uses.
``(2) Maximum enrollment.--The number of acres of
conservation reserve program land enrolled under this
subsection in a calendar year shall not exceed 10 percent of
the total number of acres enrolled in the grassland reserve
program in that calendar year.
``(3) Prohibition on duplication of payments.--Land
enrolled in the program under this subsection shall no longer
be eligible for payments under the conservation reserve
program.
``(e) Method for Determination of Fair Market Value.--The Secretary
shall determine the fair market value of land to be enrolled in program
based on the option specified in paragraph (1), (2), (3), or (4) that
results in the lowest amount of compensation to be paid by the
Secretary:
``(1) A percentage of the fair market value based on the
Uniform Standards for Professional Appraisals Procedures, as
determined by the Secretary.
``(2) A percentage of the market value determined by an
area wide market survey.
``(3) A geographic cap, as prescribed in regulations issued
by the Secretary.
``(4) The offer made by the owner of the land.''.
(d) Grassland Reserve Enhancement.--Section 1238N of the Food
Security Act of 1985 (16 U.S.C. 3838n) is amended by inserting after
subsection (d), as added by subsection (b), the following new
subsection:
``(e) Grassland Reserve Enhancement.--The Secretary may enter into
such agreements with States, including political subdivisions and
agencies of States, that the Secretary determines will advance the
purposes of the grassland reserve program. Section 1305(d) of the
Agricultural Reconciliation Act of 1987 (Public Law 100-203; 7 U.S.C.
1308 note) shall not apply to payments received by a State or political
subdivision or agency thereof in connection with such an agreement.''.
(e) Use of Private Organizations or State Agencies.--Section 1238Q
of the Food Security Act of 1985 (16 U.S.C. 3838q) is amended--
(1) by striking subsection (a) and inserting the following
new subsection:
``(a) Authority To Use Private Organizations or States.--The
Secretary shall permit a private conservation or land trust
organization (referred to in this section as a `private organization')
or a State agency to own, write, and enforce an easement under this
subchapter, in lieu of the Secretary, subject to the right of the
Secretary to conduct periodic inspections and enforce the easement,
if--
``(1) the Secretary determines that granting the permission
will promote protection of grassland, land that contains forbs,
and shrubland;
``(2) the owner authorizes the private organization or
State agency to hold and enforce the easement; and
``(3) the private organization or State agency 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 private
organization or State agency.'';
(2) in subsection (b), by striking ``hold'' and inserting
``own, write,''; and
(3) in subsection (c), by striking ``hold'' and inserting
``own, write,''.
SEC. 2105. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.
(a) 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, organic transition,'' 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, while sustaining
production of food and fiber--
``(A) enhance soil, water, and related natural
resources, including grazing land, forestland, wetland,
and wildlife; and
``(B) conserve energy;
``(4) assisting producers to make beneficial, cost
effective changes to cropping systems, grazing management,
energy use, forest management, nutrient management associated
with livestock, pest or irrigation management, or other
practices on agricultural and forested land; and''.
(b) Definitions.--Section 1240A of the Food Security Act of 1985
(16 U.S.C. 3839aa-1) is amended--
(1) by striking paragraph (3) and inserting the following
new paragraph:
``(3) Land management practice.--
``(A) In general.--The term `land management
practice' means a site-specific nutrient or manure
management, integrated pest management, irrigation
management, tillage or residue management, grazing
management, air quality management, forest management,
silvicultural practice, or other land management
practice carried out on eligible land that the
Secretary determines is needed to protect from
degradation, in the most cost-effective manner, water,
soil, or related resources.
``(B) Forest management practices.--For purposes of
subparagraph (A), forest management practices may
include activities that the Secretary determines are
needed to--
``(i) improve water quality;
``(ii) restore forest biodiversity;
``(iii) control invasive species; or
``(iv) improve watershed health.
``(C) Coordinated implementation.--A land
management practice may involve multiple landowners
implementing eligible conservation activities in a
coordinated fashion.'';
(2) in paragraph (4), by inserting ``alpacas, bison,''
after ``sheep,'';
(3) by redesignating paragraphs (3), (4), (5), and (6), as
so amended, as paragraphs (4), (5), (6), and (8), respectively;
(4) by inserting after paragraph (2) the following new
paragraph:
``(3) 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, an environmental
risks.''; and
(5) by inserting after paragraph (6), as so redesignated,
the following new paragraph:
``(7) Socially disadvantaged farmer or rancher.--The term
`socially disadvantaged farmer or rancher' has the meaning
given the term under section 355(e) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2003(e)).''.
(c) Eligible Practices.--Section 1240B(a) of the Food Security Act
of 1985 (16 U.S.C. 3839aa-2(a)) is amended--
(1) in paragraph (1), by striking ``2010'' and inserting
``2012''; and
(2) in paragraph (2)--
(A) in subparagraph (A), by inserting ``or receives
organic certification'' after ``chapter''; and
(B) by striking subparagraph (B) and inserting the
following new subparagraph:
``(B) a producer that implements a land management
practice, receives technical services from an approved
third-party provider, develops a comprehensive nutrient
management plan, or implements energy efficiency
improvements or renewable energy systems, in accordance
with this chapter shall be eligible to receive
incentive payments.''.
(d) Beginning Farmers or Ranchers and Socially Disadvantaged
Farmers or Ranchers.--Section 1240B(d)(2) of the Food Security Act of
1985 (16 U.S.C. 3839aa-2(d)(2)) is amended by striking subparagraph (A)
and inserting the following new subparagraph:
``(A) Increased cost-share for certain producers.--
The Secretary shall increase the amount provided under
paragraph (1) to a producer that is a beginning farmer
or rancher, socially disadvantaged farmer or rancher,
or limited resource farmer or rancher to 90 percent of
the cost of the practice, as determined by the
Secretary.''.
(e) Additional Support for Use of Gasifier Technology.--Section
1240B(d)(2) of the Food Security Act of 1985 (16 U.S.C. 3839aa-2(d)(2))
is amended by adding at the end the following new subparagraph:
``(C) Increased cost-share for use of gasifier
technology.--In carrying out this chapter, the
Secretary shall promote air quality by providing for a
90 percent cost share for those projects that utilize
gasifier technology for the purposes of the disposal of
animal carcasses and by-products.''.
(f) Incentive Payments.--Section 1240B(e) of the Food Security Act
of 1985 (16 U.S.C. 3839aa-2(e)) is amended--
(1) by striking paragraph (1) and inserting the following
new paragraph:
``(1) Availability of incentive payments.--The Secretary
shall make incentive payments in an amount and at a rate
determined by the Secretary to be necessary to encourage a
producer--
``(A) to perform 1 or more land management
practices;
``(B) to receive technical services from an
approved third-party provider;
``(C) to develop a comprehensive nutrient
management plan; or
``(D) to implement energy efficiency improvements
or renewable energy systems.''; and
(2) in paragraph (2), by inserting ``pollinator habitat,''
after ``invasive species,''.
(g) Allocation of Funding.--Section 1240B(g) of the Food Security
Act of 1985 (16 U.S.C. 3839aa-2(g)) is amended--
(1) by striking ``For each'' and inserting the following:
``(1) Allocation for livestock production practices.--For
each'';
(2) in such paragraph, as so designated, by striking
``2007'' and inserting ``2012''; and
(3) by adding at the end the following new paragraph:
``(2) Allocation for certain producers.--For each of fiscal
years 2007 through 2012, of the funds made available for cost-
share payments and incentive payments under this chapter, the
Secretary shall reserve, for a period of not less than 90 days
after the date on which the funds are made available for the
fiscal year--
``(A) not less than 5 percent for beginning farmers
and ranchers; and
``(B) not less than 5 percent of funds for socially
disadvantaged farmers and ranchers and limited resource
farmers and ranchers.''.
(h) Eligibility of Market Agencies and Custom Feeding Businesses.--
Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa-2) is
amended by adding at the end the following new subsection:
``(i) Eligibility of Market Agencies and Custom Feeding Businesses
for Assistance.--A market agency (as defined in section 301(c) of the
Packers and Stockyards Act, 1921 (7 U.S.C. 201(c))) or custom feeding
business may receive technical assistance, cost-share payments, or
incentive payments under the program. Any reference to `producer' in
this chapter shall be deemed to include a market agency or custom
feeding business.''.
(i) Evaluation of Applications for Cost-Share Payments and
Incentive Payments.--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 FOR COST-SHARE PAYMENTS AND
INCENTIVE PAYMENTS.
``(a) Priorities and Grouping of Applications.--In evaluating
applications for cost-share payments and incentive payments, the
Secretary shall--
``(1) prioritize applications 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) prioritize applications based on how effectively and
comprehensively the project addresses the designated resource
concern or resource concerns;
``(3) prioritize applications that best fulfill the purpose
of the environmental quality incentives program specified in
section 1240(1);
``(4) develop criteria for evaluating applications that
will ensure that national, State, and local conservation
priorities are effectively addressed; and
``(5) to the greatest extent practicable, group
applications of similar crop or livestock operations for
evaluation purposes or otherwise evaluate applications relative
to other applications for similar farming operations.
``(b) Evaluation Process.--The Secretary shall ensure that the
evaluation process is as streamlined and efficient as practicable in
the case of applications that--
``(1) involve operations with substantial and sound
environmental management systems; and
``(2) seek a single practice or a limited number of
practices to further improve the environmental performance of
that system.''.
(j) Duties of Producers.--Section 1240D(2) of the Food Security Act
of 1985 (16 U.S.C. 3839aa-4(2)) is amended by striking ``or ranch'' and
inserting ``, ranch, or forestland''.
(k) Program Plan.--Section 1240E of the Food Security Act of 1985
(16 U.S.C. 3839aa-5) is amended by striking subsections (a) and (b) and
inserting the following new subsections:
``(a) Plan of Operations.--To be eligible to receive cost-share
payments or incentive payments under the program, a producer shall
submit to the Secretary for approval a plan of operations that--
``(1) specifies practices covered under the program;
``(2) includes such terms and conditions as the Secretary
considers necessary to carry out the program, including a
description of the purposes to be met by the implementation of
the plan;
``(3) in the case of a confined livestock feeding
operation, provides for development and implementation of a
comprehensive nutrient management plan, if applicable; and
``(4) in the case of forestland, is consistent with the
provisions of a forest management plan meeting with the
approval of the Secretary, which may include a forest
stewardship plan, as specified in section 5 of the Cooperative
Forestry Assistance Act of 1978 (16 U.S.C. 2103a), other
practice plan approved by the State forester, or other plan
determined appropriate by the Secretary.
``(b) Avoidance of Duplication.--The Secretary shall--
``(1) consider a permit acquired under a water or air
quality regulatory program as the equivalent of a plan of
operations under subsection (a); and
``(2) to the maximum extent practicable, eliminate
duplication of planning activities under the program under this
chapter and comparable conservation programs.''.
(l) Duties of the Secretary.--Section 1240F of the Food Security
Act of 1985 (16 U.S.C. 3839aa-6) is amended--
(1) by striking ``To the extent'' and inserting ``(a)
Provision of Assistance.--To the extent''; and
(2) by adding at the end the following new subsection:
``(b) Water Savings.--In the case of a practice primarily intended
to conserve water, the Secretary may provide assistance to a producer
under this section only if the Secretary determines that--
``(1) the practice results in a minimum reduction, as
determined by the Secretary, in the total consumptive use of
ground water or surface water resources affected by the
practice;
``(2) any saved water remains in the source for the useful
life of the practice; and
``(3) the practice will not result, directly or indirectly,
in an increase in the consumptive use of water in the
agriculture operation of the producer.''.
(m) Conservation Innovation Grants.--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.
``(a) Competitive Grants.--The Secretary shall pay the cost of
competitive grants that are intended to stimulate innovative approaches
to leveraging Federal investment in environmental enhancement and
protection, in conjunction with agricultural production or forest
resource management, through the program.
``(b) Use.--The Secretary may provide grants under this section to
governmental and non-governmental organizations and persons, on a
competitive basis, to carry out projects that--
``(1) involve producers that are eligible for payments or
technical assistance under the program;
``(2) leverage 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;
``(3) ensure efficient and effective transfer of innovative
technologies and approaches demonstrated through projects that
receive funding under this section; and
``(4) provide environmental and resource conservation
benefits through increased participation by producers of
specialty crops.
``(c) Pilot Program for Comprehensive Conservation Planning.--
``(1) Pilot program required.--The Secretary shall
establish a pilot program to undertake comprehensive
conservation planning to assist producers before they submit an
application for assistance under any of the conservation
programs authorized by this subtitle.
``(2) Conservation planning assistance.--The Secretary
shall undertake pilot projects under the pilot program in the
locations specified in paragraph (3) to assist producers by
making a comprehensive assessment of the resource concerns,
needs, and alternative solutions for the producer's entire
operation, as determined by the Secretary, following the
procedures in the Natural Resources Conservation Service
conservation planning manual. The assistance shall be provided
by the Secretary directly or through third party providers
certified by the Secretary, and shall not be at the expense of
the producer. The results of the comprehensive planning
assistance shall be provided to the producer to enable informed
choices on the type of financial assistance available under
this subtitle that would most effectively address the resource
needs of the operation consistent with the environmental goals
for the area in which the operation is located.
``(3) Pilot projects.--Pilot projects in comprehensive
conservation planning shall be undertaken in the Chesapeake Bay
watershed, and shall include the identification of hydrologic,
soil, and rural land use factors that are unique to the
Delmarva Peninsula.
``(4) Report.--The Secretary shall conduct an assessment of
the effectiveness of the pilot program and publish a report,
available to the public, of the results of the assessment. Such
assessments shall be undertaken in the second year and the
fifth year of the pilot program.
``(d) Air Quality.--Of the funds made available under subsection
(e)(1), the Secretary shall use $10,000,000 for fiscal year 2008,
$15,000,000 for fiscal year 2009, $30,000,000 for fiscal year 2010,
$40,000,000 for fiscal year 2011, and $55,000,000 for fiscal year 2012
to support air quality improvements to help producers meet State and
local regulatory requirements related to air quality. Notwithstanding
the requirements under subsections (a) and (b), these funds shall be
made available to a State on the basis of air quality concerns facing
that producers in that State. The funds made available shall be used to
provide cost-share and incentive payments to producers.
``(e) Funding.--
``(1) Availability of funds.--Of the funds made available
under section 1241(a)(6) for fiscal years 2008 through 2012,
the Secretary shall use $30,000,000 for fiscal year 2008,
$35,000,000 for fiscal year 2009, $50,000,000 for fiscal year
2010, $60,000,000 for fiscal year 2011, and $75,000,000 for
fiscal year 2012.
``(2) Outreach for certain producers.--Of the funds made
available under paragraph (1) for a fiscal year, the Secretary
shall use $5,000,000 to make grants to support effective
outreach and innovative approaches for outreach and to serve
organic producers and producers of specialty crops (as defined
in section 3 of the Specialty Crops Competitiveness Act of 2004
(Public Law 108-465; 7 U.S.C. 1621 note).
``(3) Comprehensive conservation planning.--Of the funds
made available under paragraph (1) for a fiscal year, the
Secretary shall use $5,000,000 to carry out the comprehensive
conservation planning pilot program under subsection (c).''.
SEC. 2106. REGIONAL WATER ENHANCEMENT PROGRAM.
(a) Purpose and Goals.--The purpose of this section is to authorize
a regional water enhancement program, within the environmental quality
incentives program, to enhance performance-based, cost-effective
conservation carried out through cooperative agreements entered into by
the Secretary of Agriculture with producers, governmental entities, and
Indian tribes. The goal of the program is to improve water quality or
ground and surface water quantity through coordinated program
activities on agricultural lands. The Secretary will develop goals and
provide coordinated program assistance for water quality or water
quantity improvement projects.
(b) Establishment of Program.--Section 1240I of the Food Security
Act of 1985 (16 U.S.C. 3839aa-9) is amended to read as follows:
``SEC. 1240I. REGIONAL WATER ENHANCEMENT PROGRAM.
``(a) Definitions.--In this section:
``(1) Regional water enhancement activities.--The term
`regional water enhancement activities' includes resource
condition assessment and modeling, water quality, water
quantity or water conservation plan development, management
system and environmental monitoring and evaluation, cost-share
of restoration or enhancement projects, incentive payments for
land management practices, easement purchases, conservation
contracts with landowners, improved irrigation systems, water
banking and other forms of water transactions, groundwater
recharge and other conservation related activities that the
Secretary determines will help to achieve the water quality or
water quantity benefits on agricultural lands identified in a
partnership agreement.
``(2) Partnership agreement.--The term `partnership
agreement' means an agreement between the Secretary and a
partner under subsection (d).
``(3) Partner.--The term `partner' means an entity that
enters into a partnership agreement with the Secretary to carry
out regional water enhancement activities. The term includes--
``(A) an agricultural producer, agricultural or
silvicultural producer association, or other group of
such producers;
``(B) a State or unit of local government,
including an irrigation or water district; or
``(C) a federally recognized Indian tribe.
``(b) Establishment of Program.--
``(1) Establishment.--The Secretary shall establish a
regional water enhancement program in accordance with this
section to improve water quality or water quantity on a
regional scale to benefit working agricultural land and other
lands surrounding agricultural land.
``(2) Identification of water quality and water quantity
priority areas.--The Secretary shall identify areas where
protecting or improving water quality, water quantity, or both
is a priority. In identifying these areas, the Secretary shall
prioritize the Chesapeake Bay, the Upper Mississippi River
basin, the Everglades, the Sacramento River watershed, and the
Klamath River basin. Not more than 50 percent of the funds made
available for the regional water enhancement program shall be
reserved for priority areas identified in this paragraph.
``(c) Selection of Partners.--
``(1) Solicitation of partnership proposals.--Not later
than 90 days after the date of the enactment of the Farm,
Nutrition, and Bioenergy Act of 2007, the Secretary shall
invite prospective partners to submit competitive grant
proposals for regional water enhancement partnerships.
``(2) Elements.--To be eligible for consideration for
participation in the program, a proposal submitted by a partner
shall contain the following elements:
``(A) Identification of the exact geographic area
for which the partnership is proposed, which may be
based on--
``(i) a watershed (or portion thereof);
``(ii) an irrigation, water, drainage
district, including service area; or
``(iii) some other geographic area with
characteristics making it suitable for
landscape-wide program implementation, as may
be determined by the Secretary.
``(B) Identification of the water quality or water
quantity issues that are of concern in the area.
``(C) A method for determining a baseline
assessment of water quality, water quantity, and other
resource conditions in the region.
``(D) A detailed description of the proposed
regional water enhancement activities to be undertaken
in the area, including an estimated timeline and budget
for each activity.
``(E) A description of the performance measures to
be used to gauge the effectiveness of the regional
water enhancement activities.
``(F) A description of other regional water
enhancement activities carried out by the Secretary.
``(G) A description of regional water enhancement
activities carried out by partners through other means.
``(3) Selection of proposals.--The Secretary shall award
grants competitively, based on the following criteria applied
by the Secretary:
``(A) Proposals that will result in the inclusion
of the highest percentage of agricultural lands and
producers in the area.
``(B) Proposals that will result in the highest
percentage of on-the-ground activities versus
administrative costs.
``(C) Proposals that will provide the greatest
contribution to sustaining or enhancing agricultural
production in the area or rural economic development.
``(D) Proposals that include performance measures
that will allow post-activity conditions to be
satisfactorily measured to gauge overall effectiveness.
``(E) Proposals that will capture surface-water
runoff on farms through the construction, improvement,
or maintenance of irrigation ponds.
``(F) Proposals that have the highest likelihood of
improving issues of concern for the area through the
participation of multiple interested persons.
``(G) Proposals that will assist producers in
meeting a regulatory requirement imposed on lands in
agriculture production that reduces the economic scope
of the producer's operation.
``(4) Duration.--Grants under this subsection shall be made
on a multi-year basis, not to exceed 5 years total, except that
the Secretary may terminate a grant earlier if the performance
measures are not being met.
``(d) Partnership Agreements.--
``(1) Generally.--Not later than 30 days after the award of
a grant to a partner under subsection (c), the Secretary shall
enter into a partnership agreement with the grant recipient. At
a minimum, the agreement shall contain--
``(A) a description of the respective duties and
responsibilities of the Secretary and the partner in
carrying out regional water enhancement activities; and
``(B) the criteria that the Secretary will use to
measure the overall effectiveness of the regional water
enhancement activities funded by the grant in improving
the water quality or quantity conditions of the region
relative to the performance measures in the grant
proposal.
``(2) Acceptance of contributions.--The Secretary may
accept and use contributions of non-Federal funds to administer
the program under this section.
``(3) Waiver authority.--The Secretary shall waive the
limitation in section 1001D of this Act if the Secretary
determines that doing so is necessary to fulfill the objectives
of the regional water enhancement program.
``(e) Modification of Secretarial Authority.--To the extent that
the Secretary will be carrying out regional water enhancement
activities in an area, the Secretary may use the general authorities
provided in this subtitle to ensure that all producers and landowners
in the region have the opportunity to participate in such activities.
``(f) Relationship With Other Programs.--The Secretary shall ensure
that, to the extent producers and landowners are individually
participating in other programs under this subtitle in a region where
the regional water enhancement program is in effect, any improvements
to water quality or water quantity attributable to such individual
participation is included in the evaluation criteria developed under
subparagraph (d)(1)(B).
``(g) Consistency With State Law.--Any regional water enhancement
activity conducted under this section shall be consistent with State
water laws.
``(h) Funding.--
``(1) Availability of funds.--In addition to funds made
available to carry out this chapter under section 1241(a)(6),
the Secretary shall use funds of the Commodity Credit
Corporation to carry out this section in the amount of, to the
maximum extent practicable, $60,000,000 for each of fiscal
years 2008 through 2012.
``(2) Limitation on administrative expenses.--Not more than
3 percent of the funds made available under paragraph (1) for a
fiscal year may be used for administrative expenses of the
Secretary.''.
SEC. 2107. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.
(a) Authorization of Appropriations.--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''.
(b) Additional Funding.--Section 1240O of the Food Security Act of
1985 (16 U.S.C. 3839bb-2) is amended by adding at the end the following
new subsection:
``(c) One-Time Infusion of Funds.--Of the funds of the Commodity
Credit Corporation, the Secretary shall make available, on a one-time
basis, $10,000,000 to carry out this section. Such funds shall remain
available until expended.''.
SEC. 2108. 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. 2109. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND SEDIMENT
CONTROL.
Section 1240P(c) of the Food Security Act of 1985 (16 U.S.C.
3839bb-3(c)) is amended by striking ``2007'' and inserting ``2012''.
SEC. 2110. FARM AND RANCHLAND PROTECTION PROGRAM.
Subchapter B of chapter 2 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3838h et seq.) is amended to read as
follows:
``Subchapter B--Farm and Ranchland Protection Program
``SEC. 1238H. DEFINITIONS.
``In this subchapter:
``(1) Eligible entity.--The term `eligible entity' means
any of the following:
``(A) An agency of a State or local government or
an Indian tribe (including a farmland protection board
or land resource council established under State law).
``(B) An organization that 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.
``(C) An organization described in section
501(c)(3) of the Internal Revenue Code of 1986 that is
exempt from taxation under section 501(a) of that Code.
``(D) An organization described in section
509(a)(2) of the Internal Revenue Code of 1986.
``(E) An organization described in section
509(a)(3) of the Internal Revenue Code of 1986 that is
controlled by an organization described in section
509(a)(2), of that Code.
``(2) Eligible land.--The term `eligible land' means land
on a farm or ranch that--
``(A) is cropland;
``(B) is rangeland;
``(C) is grassland;
``(D) is pasture land;
``(E) is forest land that is an incidental part of
an agricultural operation, as determined by the
Secretary; or
``(F) contains historical or archaeological
resources.
``(3) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(4) Program.--The term `program' means the farm and
ranchland protection program established under section
1238I(a).
``(5) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``SEC. 1238I. FARM AND RANCHLAND PROTECTION PROGRAM.
``(a) Establishment.--
``(1) Establishment and purpose.--The Secretary shall
establish and carry out a farm and ranchland protection program
under which the Secretary shall facilitate and provide funding
for the purchase of conservation easements or other interests
in eligible land that is subject to a pending offer from a
certified State or eligible entity for the purpose of
protecting the agricultural use and related conservation values
of the land by limiting incompatible nonagricultural uses of
the land.
``(2) Priority.--In carrying out the program, the Secretary
shall give the highest priority--
``(A) to protecting farm and ranchland with prime,
unique or other productive soils that are at risk of
non-agricultural development; or
``(B) to projects that further a State or local
policy consistent with the purposes of the program.
``(b) Grants to Certified States.--The Secretary shall make grants
to States certified by the Secretary under subsection (c). Such grants
shall be made based on demonstrated need for farm and ranch land
protection. Grants may be made for multiple transactions so long as all
funds provided under the program are used to purchase conservation
easements or other interests in land in a timely and effective manner.
A State receiving a grant under this subsection may use up to 10
percent of the grant funds for reasonable costs of purchasing and
enforcing conservation easements.
``(c) Certification of States for Grants.--
``(1) Certification process.--The Secretary shall implement
a process, to be published in the Federal Register, for
certifying States as eligible to participate in the program.
The Secretary may provide a reasonable transitional period, not
to extend past September 30, 2008, in order to allow continued
operation of the program for such time as needed for the
Secretary to implement the certification process.
``(2) Certification requirements.--To be certified under
the process implemented under paragraph (1), a State shall
demonstrate, at a minimum, the following:
``(A) A legislative consistent with the purposes of
the program.
``(B) The necessary authority and the resources to
monitor and enforce the terms of conservation easements
or other interests in land or to require the holder of
such easements or other interests in land acquired with
the use of funding under the program to monitor and
enforce the terms of such easements or other interests
in land.
``(C) Policies and procedures to ensure that, on
average, the purchase price of conservation easements
or other interests in land purchased with program funds
do not exceed the fair market value of the easements or
other interests in land.
``(D) Policies and procedures that ensure that
conservation easements or other interests in land
purchased with program funds will continue to protect
the agricultural use and related conservation values of
the land.
``(d) Agreements With Eligible Entities.--
``(1) Agreements authorized.--The Secretary may enter into
an agreement with an eligible entity, other than a certified
State, under which the entity may purchase conservation
easements using a combination of its own funds and funds
distributed by the Secretary under the program.
``(2) Terms and conditions.--An agreement under this
subsection shall stipulate the terms and conditions under which
the eligible entity shall use funds provided by the Secretary
under the program. The eligible entity shall be authorized to
use its own terms and conditions for conservation easements and
other purchases of interests in land, so long as--
``(A) such terms and conditions are consistent with
the purposes of the program and permit effective
enforcement of the conservation purposes of such
easements or other interests;
``(B) the eligible entity has in place a
requirement consistent with agricultural activities
regarding the impervious surfaces to be allowed for any
conservation easement or other interest in land
purchased using funds provided under the program; and
``(C) the eligible entity requires use of a
conservation plan for any highly erodible cropland for
which a conservation easement or other interest in land
has been purchased using funds provided under the
program.
``(e) Federal Contingent Right of Enforcement.--The Secretary may
require the inclusion of a Federal contingent right of enforcement or
executory limitation in a conservation easement or other interest in
land for conservation purposes purchased with Federal funds provided
under the program, in order to enforce the easement as a party of last
resort. The inclusion of such a right or interest shall not be
considered to be the Federal acquisition of real property and the
Federal standards and procedures for land acquisition shall not apply
to the inclusion of the right or interest.
``(f) Review; Revocation.--
``(1) Review.--Every 3 years, the Secretary shall review
the certification of States under subsection (c) and the
performance of eligible entities in meeting the terms and
conditions of an agreement under subsection (d).
``(2) Revocation.--If, in the determination of the
Secretary, a State no longer meets the qualifications described
in subsection (c)(2) or an eligible entity is not meeting the
terms and conditions of an agreement under subsection (d), the
Secretary may--
``(A) revoke the certification of the State or
terminate the agreement with the eligible entity; or
``(B) allow the State or eligible entity a
specified period of time in which to take such actions
as may be necessary to retain its certification or to
meet the terms and conditions of the agreement, as the
case may be.
``(g) Conservation Plan.--Any highly erodible cropland for which a
conservation easement or other interest is purchased under this
subchapter shall be subject to the requirements of a conservation plan.
In the case of an easement or other interest in land that is perpetual
in duration, the Secretary may not require the conversion of the
cropland to less intensive uses if, under such plan, soil erosion can
be reduced to `T' or below.
``(h) Cost Sharing.--The share of the cost provided under this
section for purchasing a conservation easement or other interest in
land shall not exceed 50 percent of the appraised fair market value of
the conservation easement or other interest in eligible land. Fair
market value shall be determined on the basis of an appraisal of the
conservation easement or other interest in eligible land using an
industry-approved methodology determined by the entity.''.
SEC. 2111. 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. 2112. WILDLIFE HABITAT INCENTIVE PROGRAM.
(a) Reauthorization.--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 subsection:
``(d) Duration of Program.--Using funds made available under
section 1241(a)(7), the Secretary shall carry out the program during
fiscal years 2008 through 2012.''.
(b) Cost Share for Long-Term Agreements and Impact on Scope of
Operations.--Section 1240N(b)(2) of the Food Security Act of 1985 (16
U.S.C. 3839bb-1(b)(2)) is amended--
(1) in the paragraph heading by inserting ``and impact on
scope of operations'' after ``agreements'';
(2) in subparagraph (A), by striking ``years,'' and
inserting ``years, or that will assist producers in meeting a
regulatory requirement imposed on lands in agriculture
production that reduces the economic scope of the producer's
operation,''; and
(3) in subparagraph (B), by striking ``15 percent'' and
inserting ``25 percent''.
Subtitle B--Conservation Programs Under Other Laws
SEC. 2201. 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--
(1) by inserting ``Hawaii,'' after ``Delaware,''; and
(2) by inserting ``Virginia,'' after ``Vermont,''.
(b) Technical Correction.--Section 524(b)(4)(B)(i) of the Federal
Crop Insurance Act (7 U.S.C. 1524(b)(4)(B)(i)) is amended by striking
``Except as provided in clauses (ii) and (iii), the'' and inserting
``The''.
(c) Certain Uses.--Section 524(b)(4) of the Federal Crop Insurance
Act (7 U.S.C. 1524(b)(4)(B)) 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. 2202. 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), by striking ``planning process'' in
the matter preceding subparagraph (A) and inserting ``locally
led planning process''; and
(2) in paragraph (9), 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 which bring to bear 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.--To improve the provision of technical
assistance to councils under this subtitle, the Secretary shall
designate an individual, to be known as the `Coordinator', for each
council. The Coordinator 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. 2203. 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) $50,000,000 for each of fiscal years 2009
through 2012.''.
(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 2007 through 2012''.
Subtitle C--Additional Conservation Programs
SEC. 2301. CHESAPEAKE BAY PROGRAM FOR NUTRIENT REDUCTION AND SEDIMENT
CONTROL.
Chapter 5 of subtitle D 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. RIVER RESTORATION IN THE 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) Comprehensive Plan for Chesapeake Bay Watershed.--
``(1) Development.--The Secretary of Agriculture shall
develop, as expeditiously as practicable, a proposed
comprehensive plan for the purpose of restoring, preserving,
and protecting the Chesapeake bay watershed.
``(2) Proven technologies and innovative approaches.--The
comprehensive plan shall provide for the development of new
technologies and innovative approaches to advance the following
goals:
``(A) Improvement of water quality and quantity
within the Chesapeake Bay.
``(B) Restoration, enhancement, and preservation of
habitat for plants and wildlife.
``(C) Increase economic opportunity for producers
and rural communities.
``(3) Specific components.--The comprehensive plan shall
include such features as are necessary to provide for--
``(A) the development and implementation of a
program for erosion prevention and control, sediment
control and sediment removal, and reduction of nutrient
loads;
``(B) the development and implementation of a
program for--
``(i) the planning, conservation,
evaluation, and construction of measures for
fish and wildlife habitat conservation and
rehabilitation; and
``(ii) stabilization and enhancement of
land and water resources; and
``(C) the development and implementation of a long-
term resource monitoring program.
``(4) Consultation.--The comprehensive plan shall be
developed by the Secretary in consultation with appropriate
Federal and State agencies.
``(c) Submission of Plan.--
``(1) Submission.--Not later than 2 years after the date of
enactment of the Farm, Nutrition, and Bioenergy Act of 2007,
the Secretary shall transmit to Congress a report containing
the comprehensive plan.
``(2) Additional studies and analyses.--After submission of
the report required by paragraph (1), the Secretary shall
continue to conduct such studies and analyses related to the
comprehensive plan as are necessary, consistent with this
subsection.
``(d) Restoration Enhancement and Preservation Projects.--
``(1) Project authority.--In cooperation with appropriate
Federal and State agencies, the Secretary shall carry out
restoration enhancement and preservation projects for the
Chesapeake Bay watershed to address the goals specified in
subsection (b)(2). To achieve the restoration, preservation,
and protection benefits of a project, the Secretary shall
proceed expeditiously with the implementation of the project
consistent with the comprehensive plan.
``(2) Critical projects.--In carrying out this subsection,
the Secretary shall begin with the Susquehanna River, the
Shenandoah River, the Potomac River, and the Patuxent River.
``(3) Availability of funds.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out
projects under this subsection the following amounts:
``(A) $10,000,000 for fiscal year 2008.
``(B) $15,000,000 for fiscal year 2009.
``(C) $30,000,000 for fiscal year 2010.
``(D) $40,000,000 for fiscal year 2011.
``(E) $55,000,000 for fiscal year 2012.
``(4) Federal share.--The Federal share of the cost of
carrying out any individual project under this subsection shall
not exceed $5,000,000.
``(e) General Provisions.--
``(1) Water quality.--In carrying out projects and
activities under this section, the Secretary shall take into
account the protection of water quality by considering
applicable State water quality standards.
``(2) Public participation.--In developing the
comprehensive plan under subsection (b) and carrying out
projects under subsection (d), the Secretary shall implement
procedures to facilitate public participation, including
providing advance notice of meetings, providing adequate
opportunity for public input and comment, maintaining
appropriate records, and making a record of the proceeding of
meetings available for public inspection.
``(f) Coordination.--The Secretary shall integrate and coordinate
projects and activities carried out under this section with other
Federal and State programs, projects, and activities.
``(g) Cost Sharing.--
``(1) Non-federal share.--Subject to subsection (d)(4), the
non-Federal share of the cost of projects and activities
carried out under this section shall be not less than 35
percent.
``(2) Operation, maintenance, rehabilitation, and
replacement.--The operation, maintenance, rehabilitation, and
replacement of projects carried out under this section shall be
a non-Federal responsibility.
``(h) Sense of Congress Regarding Chesapeake Bay Executive
Council.--
``(1) Findings.--Congress finds the following:
``(A) One of the stated goals of the Chesapeake Bay
Agreement is to `develop, promote, and achieve sound
land use practices which protect and restore watershed
resources and water quality, maintain reduced pollutant
loadings for the Bay and its tributaries, and restore
and preserve aquatic living resources'.
``(B) Department of Agriculture conservation
programs are integral to the restoration of the
Chesapeake Bay and achieving the water quality goals
for the Chesapeake Bay program.
``(2) Sense of congress.--In light of the findings
specified in paragraph (1), it is the sense of Congress that
the Secretary of Agriculture 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)).''.
SEC. 2302. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM.
Chapter 5 of subtitle D of title XII of the Food Security Act of
1985 is amended by inserting after section 1240Q, as added by section
2301, 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--
``(1) have consistent opening dates for migratory bird
hunting for both residents and non-residents;
``(2) propose to maximize participation by offering a
program the terms of which are likely to meet with widespread
acceptance among landowners;
``(3) propose to ensure that land enrolled under the State
or tribal government program has appropriate wildlife habitat;
``(4) propose to strengthen wildlife habitat improvement
efforts on land enrolled in a special conservation reserve
enhancement program described in 1234(f)(4) by providing
incentives to increase public hunting and other recreational
access on that land; and
``(5) propose to use additional Federal, State, tribal
government, or private resources in carrying out the program.
``(d) Relationship to Other Laws.--Nothing in this section preempts
a State or tribal government law, including any State or tribal
government liability law.
``(e) Regulations.--The Secretary shall promulgate such regulations
as are necessary to carry out this section.
``(f) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary $20,000,000 for each of fiscal years 2008
through 2012 to carry out this section.''.
SEC. 2303. MUCK SOILS CONSERVATION.
(a) Establishment of Program.--The Secretary of Agriculture shall
carry out a conservation program under which the Secretary makes
payments to assist owners and operators of eligible land specified in
subsection (b) to conserve and improve the soil, water, and wildlife
resources of such land.
(b) Eligible Land.--To be eligible for inclusion in the program
established under this section, the land must--
(1) be comprised of soil that qualifies as muck, as
determined by the Secretary;
(2) be used for production of an agricultural crop;
(3) have a spring cover crop planted in conjunction with
the primary agricultural crop referred to in paragraph (2);
(4) have a winter crop planted; and
(5) have ditch banks seeded with grass that is maintained
on a year-round basis.
(c) Payment Amounts.--The Secretary may provide payments of not
less than $300, but not more than $500, per acre per year under the
program.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out the program $50,000,000 for
each of fiscal years 2008 through 2012.
Subtitle D--Administration and Funding
SEC. 2401. 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 Security Program.--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) The conservation security program under subchapter A
of chapter 2, using, to the maximum extent practicable--
``(A) in the case of conservation security
contracts entered into before October 1, 2007, under
such subchapter, as in effect on the day before the
date of the enactment of the Farm, Nutrition, and
Bioenergy Act of 2007--
``(i) $1,454,000,000 for the period of
fiscal years 2007 through 2012; and
``(ii) $1,927,000,000 for the period of
fiscal years 2007 through 2017; and
``(B) in the case of conservation security
contracts entered into on or after October 1, 2011,
under such subchapter--
``(i) $501,000,000 for fiscal year 2012;
and
``(ii) $4,646,000,000 for the period of
fiscal years 2012 through 2017.''.
(c) Farm and Ranchland 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 farm and ranchland protection program under
subchapter B of chapter 2, using, to the maximum extent
practicable--
``(A) $125,000,000 in fiscal year 2008;
``(B) $150,000,000 in fiscal year 2009;
``(C) $200,000,000 in fiscal year 2010;
``(D) $240,000,000 in fiscal year 2011; and
``(E) $280,000,000 in fiscal year 2012.''.
(d) 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) $1,250,000,000 in fiscal year 2008;
``(B) $1,600,000,000 in fiscal year 2009;
``(C) $1,700,000,000 in fiscal year 2010;
``(D) $1,800,000,000 in fiscal year 2011; and
``(E) $2,000,000,000 in fiscal year 2012.''.
(e) 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. 2402. IMPROVED PROVISION OF TECHNICAL ASSISTANCE UNDER
CONSERVATION PROGRAMS.
Section 1242 of the Food Security Act of 1985 (16 U.S.C. 3842) is
amended--
(1) in subsection (a)--
(A) by striking ``or'' at the end of paragraph (1);
and
(B) by striking paragraph (2) and inserting the
following new paragraphs:
``(2) through a contract with an approved third party, if
available; or
``(3) at the option of the producer, through a payment as
determined by the Secretary, directly to an approved third
party, if available, or to the producer for an approved third
party, if available.'';
(2) in subsection (b)--
(A) by striking ``technical assistance'' each place
it appears and inserting ``technical services''; and
(B) in paragraph (1)(B), by striking ``that
assistance'' and inserting ``those technical
services''; and
(3) by adding at the end the following new subsections:
``(c) Payment Amounts.--
``(1) Use of prevailing market rates.--The Secretary shall
set the amounts of payments under subsection (b)(1)(B) for
technical services at levels not less than prevailing private
market rates.
``(2) Exception.--Paragraph (1) shall not apply in
instances where personnel of the Department of Agriculture are
immediately available to provide comparable technical services
to eligible producers.
``(d) Review and Expedited Approval of Technical Assistance
Specifications.--
``(1) Review of existing technical assistance
specifications.--
``(A) Review of specifications.--The Secretary
shall direct each State to review and ensure, to the
maximum extent practicable, the completeness and
relevance of technical assistance specifications in
effect as of the date of the enactment of the Farm,
Nutrition, and Bioenergy Act of 2007.
``(B) Consultation.--In conducting the assessment
under subparagraph (A), a State shall consult with
specialty crop producers, crop consultants, cooperative
extension and land-grant universities, nongovernmental
organizations, and other qualified entities.
``(C) Expedited revision of specifications.--If a
State determines under subparagraph (A) that revisions
to its technical assistance specifications are
necessary, the State shall establish an administrative
process for expediting the revisions.
``(2) Addressing concerns of specialty crop producers.--
``(A) In general.--The Secretary shall direct each
State to fully incorporate into its technical
assistance specifications and provide for the
appropriate range of conservation practices and
resource mitigation measures available to specialty
crop producers.
``(B) Availability of adequate technical
assistance.--The Secretary shall ensure that adequate
technical assistance is available for the
implementation of conservation practices by specialty
crop producers through Federal conservation programs.
In carrying out this requirement, the Secretary shall
develop--
``(i) programs that meet specific needs of
specialty crop producers through cooperative
agreements with other agencies and
nongovernmental organizations; and
``(ii) program specifications that allow
for innovative approaches that engage local
resources in providing technical assistance for
planning and implementation of conservation
practices.
``(e) Non-Federal Assistance.--The Secretary may request the
services of, and enter into cooperative agreements or contracts with,
non-Federal entities to assist the Secretary in providing technical
assistance necessary to develop and implement conservation programs
under this title.''.
SEC. 2403. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.
(a) Transfer of Existing Provisions.--Subsections (b), (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.--
``(1) Establishment.--The Secretary shall establish a
cooperative conservation partnership initiative (in this
section referred to as the `Partnership') within each program
described in subsection (b) to address conservation issues
involving production agriculture on local, regional, or State
levels.
``(2) Administration.--The Secretary shall carry out the
Partnership--
``(A) by selecting proposals for grants and
agreements by eligible entities described in subsection
(c) through a competitive selection process;
``(B) by making grants to, and entering into
agreements with, with eligible entities described in
subsection (c) for not less than 2 years, but not more
than 5 years, in duration; and
``(C) by providing producers that are participating
in a special project and initiative of an eligible
entity preferential enrollment into 1 or more of the
programs described in subsection (b).
``(3) Purposes.--The purposes of the Partnership are to
carry out special projects and initiatives--
``(A) to address conservation issues involving
production agriculture on local, regional, or State
levels through producers and eligible entities;
``(B) to address community and economic development
needs and opportunities; and
``(C) to increase access to, and participation in,
the programs described in subsection (b) by producers
of specialty crops (as defined in section 3 of the
Specialty Crops Competitiveness Act of 2004, Pub. L.
108-465 (7 U.S.C. 1621 note).
``(b) Covered Programs.--The conservation programs covered by this
section are the following:
``(1) Conservation security program.
``(2) Environmental quality incentives program.
``(3) Wildlife habitat incentive program.
``(c) Eligible Partners.--Grants may be made or agreements may be
entered into under this section with any of the following (or a
combination thereof):
``(1) States and agencies of States.
``(2) Political subdivisions of States, including counties
and State- or county-sponsored conservation districts.
``(3) Indian tribes.
``(4) Nongovernmental organizations and associations,
including producer associations, farmer cooperatives, extension
associations, and conservation organizations with a history of
working cooperatively with producers to effectively address
resource concerns related to agricultural production, as
determined by the Secretary.
``(5) A combination of partners specified in a preceding
paragraph.
``(d) Applications.--
``(1) Competitive process.--The Secretary shall establish a
competitive process for considering applications for grants or
agreements under this section consistent with the evaluation
criteria listed in subsection (e).
``(2) Program allocation.--Applications shall include--
``(A) specification of the amount of funding or
acres, or both, of 1 or more covered programs specified
in subsection (b) proposed to be allocated to carry out
the special project or initiative; and
``(B) a schedule for utilization of funding or
acres over the life of the proposed project or
initiative.
``(e) Evaluation Criteria.--In evaluating applications for grants
or agreements under this section the Secretary shall consider the
extent to which--
``(1) preferential enrollment in the covered programs
specified in the application will effectively address the
environmental objectives established for the special project or
initiative; and
``(2) the special project or initiative covered by the
application--
``(A) enjoys local and regional support from
producers and other interested persons, including
governmental and nongovernmental organizations with
appropriate expertise on the issues the project or
initiative seeks to address;
``(B) includes clear environmental objectives;
``(C) includes a well defined project or initiative
plan that identifies sensitive areas requiring
treatment and prioritizes conservation practices and
activities needed to achieve environmental objectives;
``(D) promises adequate and coordinated
participation to achieve the objectives of the project
or initiative;
``(E) coordinates integration of local, State, and
Federal efforts to make the best use of available
resources and maximize cost-effective investments;
``(F) leverages financial and technical resources
from sources other than the programs authorized by this
subtitle, including financial and technical resources
provided by Federal and State agencies, local
governments, nongovernmental organizations and
associations, and other private sector entities;
``(G) describes how all necessary technical
assistance will be provided to each producer
participating in the project or initiative, including
cost estimates for technical assistance and whether
such assistance will be provided by technical service
providers;
``(H) describes how the administrative costs of the
project or initiative will be minimized;
``(I) addresses a local, State, regional, or
national environmental priority or priorities, with
particular emphasis on any priority for which there is
an existing State or federally approved plan in place
for addressing that priority;
``(J) includes a plan to evaluate progress, measure
results, and meet the purposes of the agreement;
``(K) clearly demonstrates that enrollment of
producers in covered programs will be consistent with
the purposes and policies of each individual program,
as established in statute, rules and regulations, and
program guidance promulgated by implementing agencies;
``(L) links resource and environmental objectives
with community development or agritourism objectives
that can be improved as a result of addressing the
resources of concern;
``(M) demonstrates innovation in linking
environmental and community development objectives; and
``(N) addresses the needs of beginning farmers and
ranchers, socially disadvantaged farmers and ranchers,
and limited resource farmers and ranchers.
``(f) Priorities.--To the maximum extent practicable, consistent
with the requirements of subsection (d), the Secretary shall ensure
that, each fiscal year, grants are awarded and agreements are entered
into under this section to support projects and initiatives that
collectively address the resource concerns facing producers, ranchers,
and nonindustrial private forest landowners, including specifically
projects and initiatives that are designed--
``(1) to achieve improvements in water quality in
watersheds impacted by agriculture, particularly by increasing
the participation of producers in implementing best management
practices in a watershed or developing environmentally and
economically viable alternative uses for manure and litter;
``(2) to achieve improvements in air quality in a
geographical area where agricultural operations impact air
quality;
``(3) to support State activities to efficiently manage and
utilize their water resources in regions, States or local areas
where water quantity is a concern;
``(4) to assist in carrying out a State Wildlife Habitat
Incentives Program plan or other State, regional, or national
conservation initiative.
``(5) to control invasive species on rangeland or other
agricultural land through the cooperative efforts of multiple
producers in a geographical area;
``(6) to address a specific resource of concern or set of
concerns on private, non-industrial forest land;
``(7) to reduce losses of pesticides to the environment by
engaging multiple producers in a geographic area in adoption of
integrated pest management practices and approaches;
``(8) to protect farmland and ranch land facing development
pressures from being converted to non-agricultural use; or
``(9) to assist producers in carrying out good management
practices to enhance food safety.
``(g) Duties of Partners.--Eligible partners shall--
``(1) identify conservation issues affecting production
agriculture on local, regional, or State levels that could be
addressed through special projects and initiatives;
``(2) enter into agreements or obtain grants from the
Secretary to carry out special projects and initiatives;
``(3) identify through outreach efforts producers that can
participate in the special project or initiative of the
eligible entity if the producer is otherwise eligible to be
enrolled, as determined by the Secretary, or has already
enrolled, in the applicable program described in subsection
(b); and
``(4) carry out the special project and initiative.
``(h) Duties of the Secretary.--
``(1) Additional duties.--In addition to the normal
administration of the programs described in subsection (b), the
Secretary shall be responsible for basic administrative and
oversight functions relating to the special projects and
initiatives, including--
``(A) rules and procedures relating to conservation
standards and specifications;
``(B) conservation compliance;
``(C) appeals;
``(D) adjusted gross income limitations;
``(E) direct attribution; and
``(F) such other similar functions as the Secretary
might designate.
``(2) Flexibility.--The Secretary may adjust eligibility
criteria, approved practices, practice standards, innovative
conservation practices, and other elements of the programs
described in subsection (b) to better reflect unique local
circumstances and purposes if the Secretary determines such
adjustments would--
``(A) improve environmental enhancement and long-
term sustainability of the natural resource base; and
``(B) be consistent with the purposes of the
program and the special project and initiative.
``(3) Preferential enrollment.--Subject to the limitations
under subsection (j), the Secretary shall provide preferential
enrollment to producers that are eligible--
``(A) for the applicable program described in
subsection (b); and
``(B) to participate in the special project and
initiative of an eligible partner.
``(i) Cost Share.--The Secretary shall not require more than 25
percent of the cost of a project or initiative supported under a grant
or agreement entered into under this section to come from non-Federal
sources. However, the Secretary may give higher priority to projects or
initiatives offering to cover a higher percentage of the cost of the
project or initiative from non-Federal sources.
``(j) Incentive and Bonus Payments.--
``(1) Availability.--Applications submitted under
subsection (d)(2) may include proposals for special incentive
and bonus payments, consistent with the statutory purposes of
the programs involved, to producers that--
``(A) restore land, water, or habitat as a
community development asset; or
``(B) provide public access to enrolled land.
``(2) Criteria.--The Secretary shall develop and publish
criteria for providing special incentive or bonus payments to
producers under paragraph (1).
``(k) Funding.--
``(1) Set-aside.--Of the funds provided for each of fiscal
years 2008 through 2012 to implement the programs specified in
subsection (b), the Secretary shall reserve 10 percent to
ensure an adequate source of funds for grants, agreements,
financial assistance to producers under this section.
``(2) Allocation to states.--The Secretary shall allocate
to States 90 percent of the funds reserved under paragraph (1)
for a fiscal year to allow State Conservationists, with the
advice of State technical committees, to select projects and
initiatives for funding under this section at the State level.
The Secretary shall develop criteria for this allocation made
on a similar basis as to the program priorities under
subsection (f).
``(3) Unused funding.--Any funds 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
conservation programs under subtitle D during the remainder of
that fiscal year.
``(4) Administrative costs funding cap.--Of the funds made
available under this section for a particular project or
initiative, not more than 5 percent may be expended by the
eligible entity on the administrative costs of the project or
initiative.''.
SEC. 2404. REGIONAL EQUITY AND FLEXIBILITY.
Section 1241(d) of the Food Security Act of 1985 (16 U.S.C.
3841(d)) is amended by striking ``$12,000,000'' and inserting
``$15,000,000''.
SEC. 2405. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.
(a) Incentives for Certain Producers.--Section 1244(a) of the Food
Security Act of 1985 (16 U.S.C. 3844(a)) is amended--
(1) in the subsection heading, by striking ``Beginning''
and inserting ``Incentives for Certain'';
(2) by inserting ``, socially disadvantaged farmers and
ranchers, limited resource farmers and ranchers,'' after
``beginning farmers and ranchers''; and
(3) by striking ``and limited resource agricultural
producers''.
(b) Single, Simplified Application Process for Conservation
Programs.--Section 1244 of the Food Security Act of 1985 (16 U.S.C.
3844), as amended by section 2403, is amended by adding at the end the
following new subsection:
``(f) Single, Simplified Application Process.--
``(1) Establishment.--In carrying out any of the
conservation programs under this title administered by the
Natural Resources Conservation Service, the Secretary shall
establish and make available to producers and landowners a
single, simplified application process to be used by producers
and landowners in initially requesting assistance under such
programs. The Secretary shall ensure that--
``(A) conservation program applicants are not
required to provide information that duplicates
information and resources already available to the
Secretary regarding that applicant and for that
specific operation; and
``(B) the application process is streamlined to
minimize complexity and redundancy.
``(2) Review of application process.--The Secretary shall
review the conservation application process and the forms and
related mechanisms used to receive assistance requests from
producers and landowners. The purpose of the review shall be to
determine what information the applicant is actually required
to submit during the application process, including--
``(A) identification information for the applicant;
``(B) identification and location information for
the land parcel or tract of concern;
``(C) a general statement of the applicant's
resource concern or concerns for the land parcel or
tract; and
``(D) the minimum amount of other information the
Secretary considers essential for the applicant to
provide.
``(3) Revision and streamlining.--The Secretary shall carry
out a revision of the application forms and processes for
conservation programs covered in this subsection to enable
utilization of information technology as an avenue to
incorporate appropriate data and information concerning the
conservation needs and solutions appropriate for the land area
identified by the applicant. The revision shall seek to
streamline the application process to minimize the burden
placed on the applicant.
``(4) Conservation program application.--When the needs of
an applicant are adequately assessed by the Secretary, directly
or through a third-party provider under section 1242, in order
to determine the conservation programs under this title that
best match the needs of the applicant, with the approval of the
applicant, the Secretary may convert the initial application
into a specific application for assistance for a specific
program. To the maximum extent practical, the specific
application for conservation program assistance shall be
carried out by the Secretary by requesting only that specific
further information from the applicant that is not already
available to the Secretary.
``(5) Implementation and notification.--Not later than one
year after the date of the enactment of the Farm, Nutrition,
and Bioenergy Act of 2007, the Secretary shall complete the
requirements of this subsection and shall submit to Congress a
written notification of such completion.''.
SEC. 2406. ANNUAL REPORT ON PARTICIPATION BY SPECIALTY CROP PRODUCERS
IN CONSERVATION PROGRAMS.
(a) Report Required.--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. ANNUAL REPORT ON PARTICIPATION BY SPECIALTY CROP PRODUCERS
IN CONSERVATION PROGRAMS.
``(a) Report Required.--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 an
annual report that--
``(1) documents and analyzes the participation by producers
of specialty crops in conservation programs under subtitle D,
including the conservation security program and the
environmental quality incentives program;
``(2) tracks such participation by crop and livestock type;
and
``(3) describes the results of implementing the plan
required by subsection (b), as well as any modifications to the
plan that the Secretary finds necessary to increase its
effectiveness.
``(b) Access Plan.--As part of each report submitted under
subsection (a), the Secretary shall set forth a plan to improve the
access of producers of specialty crops to, and their participation in,
conservation programs under subtitle D. In developing the plan, the
Secretary shall consult with organizations representing producers of
specialty crops.
``(c) Specialty Crop Defined.--In this section, the term `specialty
crop' has the meaning given such term by section 3(1) of the Specialty
Crops Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 1621
note).''.
(b) Initial Report.--The first report required under section 1252
of the Food Security Act of 1985, as added by subsection (a), shall be
submitted not later than 180 days after the date of the enactment of
this Act. Subsection (a)(2) of such section shall not apply with
respect to the first report.
SEC. 2407. PROMOTION OF MARKET-BASED APPROACHES TO CONSERVATION.
(a) Findings.--Congress finds the following:
(1) Many of the conservation and environmental benefits
produced on farms, ranches, and private forest lands in the
United States do not have an assigned value in the market place
or lack a private market altogether.
(2) While private markets for environmental goods and
services are emerging, their viability has been hampered by
several barriers.
(3) The Federal Government can help overcome these barriers
and promote the establishment of markets for agricultural and
forestry conservation activities.
(4) Generating substantial private-sector demand for
environmental goods and services hinges on the ability to use
environmental credits generated by agricultural and forest
conservation activities.
(b) Market-Based Approaches.--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. MARKET-BASED APPROACHES TO CONSERVATION.
``(a) Implementation.--To facilitate the development and effective
operation of private sector market-based approaches for environmental
goods and services produced by farmers, ranchers, and owners of private
forest land, the Secretary may conduct research and analysis, enter
into contracts and cooperative agreements, and award grants for the
purpose of--
``(1) promoting the development of consistent standards and
processes for quantifying environmental benefits, including the
creation of performance standards or baselines;
``(2) promoting the establishment of reporting and credit
registries, including third-party verification and
certification; and
``(3) promoting actions that facilitate the development and
functioning of private-sector market-based approaches for
environmental goods and services involving agriculture and
forestry.
``(b) Environmental Services Standards Board.--
``(1) Establishment.--There is to be established an
Environmental Services Standards Board to develop consistent
performance standards for quantifying environmental services
from land management and agricultural activities in order to
facilitate the development of credit markets for conservation
and land management activities that are agriculture or forest
based.
``(2) Chairperson.--The Secretary of Agriculture shall
serve as chair of the Environmental Services Standards Board.
``(3) Membership.--The Environmental Services Standards
Board shall be comprised of the Secretary of Agriculture, the
Secretary of the Interior, the Secretary of Energy, the
Secretary of Commerce, the Secretary of Transportation, the
Administrator of the Environmental Protection Agency, the
Commander of the Army Corps of Engineers, and such other
representatives as determined by the President.
``(4) Subcommittees.--The Environmental Services Standards
Board may form subcommittees to address specific issues.
``(c) Dissemination of Performance Standards.--Federal agencies are
authorized to adopt performance standards developed by the
Environmental Services Standards Board for quantifying environmental
services that establish credits to meet requirements of environmental
and conservation programs.
``(d) Funding .--There is authorized to be appropriated $50,000,000
to carry out this section. Amounts so appropriated shall remain
available until expended.
``(e) Definitions.--In this section:
``(1) Baseline.--The term `baseline' means a level of
effort or performance that is expected to be met before an
entity can generate marketable credits.
``(2) Performance standard.--The term `performance
standard' means a defined level of environmental performance,
expressed as a narrative or measurable number, which specifies
the minimum acceptable environmental performance of an
operation or practice.''.
SEC. 2408. 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) 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 Cooperative State Research, Education, and
Extension Service.
``(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) At least 12 agricultural producers representing the
variety of crops and livestock or poultry grown within the
State.
``(11) 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.
``(12) Agribusiness.
``(c) Subcommittees.--A State technical committee shall convene one
or more subcommittees to provide technical guidance and implementation
recommendations. The topics that a subcommittee shall address shall
include, at a minimum, the following:
``(1) Establishing priorities and criteria for State
initiatives under the programs in this title, including the
review of whether local working groups are addressing those
priorities.
``(2) Issues related to private forestlands protection and
enhancement.
``(3) Issues related to water quality and water quantity.
``(4) In those States where applicable, issues related to
air quality.
``(5) Issues related to wildlife habitat, including the
protection of nesting wildlife.
``(6) Issues related to wetland protection, restoration,
and mitigation requirements.
``(7) Other issues as the Secretary determines would be
useful.
``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) Advisory Role.--The role of a State technical committee is
advisory in nature, and the committee shall have no implementation or
enforcement authority. However, the Secretary shall give strong
consideration to the recommendations of the committee in administering
the programs under this title.
``(d) FACA Requirements.--Except as provided in subsection (b), a
State technical committee, including any subcommittee of State
technical committee, is exempt from the Federal Advisory Committee Act
(5 U.S.C. App.).''.
SEC. 2409. PAYMENT LIMITATIONS.
(a) In General.--The Food Security Act of 1985 is amended by
inserting after section 1245, as added by section 2407, the following
new section:
``SEC. 1246. PAYMENT LIMITATIONS.
``(a) Payments for Conservation Practices.--The total amount of
payments that a person or a legal entity (except a joint venture or a
general partnership) may receive, directly or indirectly, in any fiscal
year shall not exceed--
``(1) $60,000 from any single program under this title or
as agricultural management assistance under section 524(b) of
the Federal Crop Insurance Act (7 U.S.C. 524(b)); or
``(2) $125,000 from more than one program under this title
and as agricultural management assistance under section 524(b)
of the Federal Crop Insurance Act.
``(b) Exceptions.--The limitations under subsection (a) shall not
apply with respect to the following:
``(1) The wetlands reserve program under subchapter C of
chapter 1 of subtitle D.
``(2) The farm and ranchland protection program under
subchapter B of chapter 2 of such subtitle.
``(3) The grassland reserve program under subchapter C of
chapter 2 of such subtitle.
``(c) Direct Attribution.--
``(1) In general.--In implementing the payment limitations
in subsection (a), 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 such payments.
``(2) Payments to a person.--Every payment made directly to
a person shall be combined with the person's pro rata interest
in payments received by a legal entity in which the person has
a direct or indirect ownership interest.
``(3) Payments to a legal entity.--
``(A) In general.--Every payment made to a legal
entity shall be attributed to those persons who have a
direct or indirect ownership interest in the legal
entity.
``(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
subsection (a).
``(ii) Exception.--Payments made to a joint
venture or a general partnership shall not
exceed, for each payment specified in
subsection (a), the amount determined by
multiplying the maximum payment amount
specified in subsection (a) 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.''.
(b) Conforming Amendments.--
(1) Existing payment limitations in conservation
programs.--Title XII of the Food Security Act of 1985 is
amended--
(A) in section 1234 (16 U.S.C. 3834) by striking
subsection (f);
(B) in section 1238C (16 U.S.C. 3838c), as amended
by section 2103, by striking subsections (d) and (e);
and
(C) by striking section 1240G (16 U.S.C. 3839aa-7).
(2) Agricultural management assistance.--Section 524(b) of
the Federal Crop Insurance Act (7 U.S.C. 524) is amended by
striking paragraph (3).
Subtitle E--Miscellaneous Provisions
SEC. 2501. INCLUSION OF INCOME FROM AFFILIATED PACKING AND HANDLING
OPERATIONS AS INCOME DERIVED FROM FARMING FOR APPLICATION
OF ADJUSTED GROSS INCOME LIMITATION ON ELIGIBILITY FOR
CONSERVATION PROGRAMS.
Section 1001D(b)(1) of the Food Security Act of 1985 (7 U.S.C.
1308-3a(b)(1)) is amended by inserting ``(including, for purposes of
paragraph (2)(C), affiliated packing and handling operations)'' after
``derived from farming''.
SEC. 2502. ENCOURAGEMENT OF VOLUNTARY SUSTAINABILITY PRACTICES
GUIDELINES.
In administering this title and the amendments made by this title,
the Secretary of Agriculture may encourage the development of voluntary
sustainable practices guidelines for producers and processors of
specialty crops.
SEC. 2503. FARMLAND RESOURCE INFORMATION.
(a) Development and Dissemination of Farmland Resource
Information.--The Secretary of Agriculture shall design and implement
educational programs and materials emphasizing the importance of
productive farmland to the Nation's well-being and distribute
educational materials through communications media, schools, groups,
and other Federal agencies. The Secretary shall carry out this
subsection through existing agencies or interagency groups and in
cooperation with nonprofit organizations and the cooperative extension
services of States.
(b) Farmland Information Centers.--The Secretary shall designate 1
or more farmland information centers to provide technical assistance
and serve as central depositories and distribution points for
information on farmland issues. Information provided by a center shall
include online access to data on land cover and use changes and trends
and literature, laws, historical archives, policies, programs, and
innovative actions or proposals by local and State governments or
nonprofit organizations related to farmland protection.
(c) Funding.--Funds for the farmland information centers designated
under subsection (b) shall be provided using funds made available for
the farm and ranchland protection program established under subchapter
B of chapter 2 of subtitle D of title XII of the Food Security Act of
1985 (16 U.S.C. 3838h et seq.). Such funding for a fiscal year shall
not exceed one-half of 1 percent of the funds made available for the
farm and ranchland protection program for that fiscal year, but no less
than $400,000 annually.
(d) Matching Funds.--Federal funding for a farmland information
center designated under subsection (b) shall be matched with non-
Federal funds, through cash or in-kind contributions.
SEC. 2504. PILOT PROGRAM FOR FOUR-YEAR CROP ROTATION FOR PEANUTS.
(a) Contract Authority.--The Secretary of Agriculture shall enter
into a contract with a peanut producer under which the producer will
implement a four-year crop rotation for peanuts.
(b) Contract Payments.--Under the contract, the Secretary shall pay
to the producer a contract implementation payment, in an amount
determined to be appropriate by the Secretary.
(c) Funding.--For each of fiscal years 2008 through 2012, the
Secretary shall use the funds, facilities, and authorities of the
Commodity Credit Corporation to carry out the provisions under this
section, except that funding of the pilot program may not exceed
$10,000,000 in each of such fiscal years.
TITLE III--TRADE
Sec. 3001. Agricultural Trade Development and Assistance Act of 1954.
Sec. 3002. Export credit guarantee program.
Sec. 3003. Market access program.
Sec. 3004. Food for Progress Act of 1985.
Sec. 3005. Reauthorization of McGovern-Dole International Food for
Education and Child Nutrition Program.
Sec. 3006. Bill Emerson Humanitarian Trust.
Sec. 3007. Technical assistance for specialty crops.
Sec. 3008. Technical assistance for the resolution of trade disputes.
Sec. 3009. Representation by the United States at international
standard-setting bodies.
Sec. 3010. Foreign market development cooperator program.
Sec. 3011. Emerging markets.
Sec. 3012. Export Enhancement Program.
Sec. 3013. Minimum level of nonemergency food assistance.
Sec. 3014. Germplasm conservation.
Sec. 3015. Report on efforts to improve procurement planning.
Sec. 3016. International disaster assistance under the Foreign
Assistance Act of 1961.
SEC. 3001. AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954.
(a) Purpose of Program.--Section 201 of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1721) is amended so
that paragraph (1) reads as follows:
``(1) address famine and food crises and respond to
emergency food needs arising from manmade disasters, and
natural disasters.''.
(b) Support for Eligible Organizations.--Section 202(e)(1) of the
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C.
1722(e)(1)) is amended--
(1) by striking ``not less than 5 percent nor more than 10
percent of the funds'' and inserting ``not less than 7 percent
nor more than 12 percent of the funds'';
(2) striking ``and'' at the end of subparagraph (A);
(3) striking the period at the end of subparagraph (B) and
inserting ``; and''; and
(4) inserting after subparagraph (B) the following:
``(C) developing, implementing and improving
monitoring systems of programs receiving funds under
this title.''.
(c) Generation and Use of Currencies by Private Voluntary
Organizations and Cooperatives.--Subsection (b) of section 203 of the
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C.
1723) is amended by striking ``1 or more recipient countries'' and
inserting ``in 1 or more recipient countries''.
(d) Levels of Assistance.--Section 204(a) of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1724(a)) is amended--
(1) in paragraph (1) by striking ``2002 through 2007'' and
inserting ``2008 through 2012''; and
(2) in paragraph (2) by striking ``2002 through 2007'' and
inserting ``2008 through 2012''.
(e) Food Aid Consultative Group.--
(1) Report to congress.--Section 205 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1725) is
amended--
(A) by redesignating subsection (f) as subsection
(g); and
(B) by inserting after subsection (e) the following
new subsection:
``(f) Report to Congress.--
``(1) In general.--Not later than 180 days after the date
of the enactment of the Farm, Nutrition, and Bioenergy Act of
2007, and annually thereafter until December 31, 2012, the
Administrator of the United States Agency for International
Development, in close consultation with the Group, shall submit
to the appropriate congressional committees a report on efforts
taken by the United States Agency for International Development
and the Department of Agriculture to develop a strategy under
this section to achieve an integrated and effective food
assistance program.
``(2) Appropriate congressional committees defined.--In
this subsection, the term `appropriate congressional
committees' means--
``(A) the Committee on Foreign Affairs and the
Committee on Agriculture of the House of
Representatives; and
``(B) the Committee on Agriculture, Nutrition, and
Forestry of the Senate.''.
(2) Termination.--Such section is further amended in
subsection (g) (as redesignated by paragraph (1)(A)) by
striking ``2007'' and inserting ``2012''.
(f) Denial of Proposals.--Paragraph (3) of section 207(a) of the
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C.
1726a(a)) is amended to read as follows:
``(3) Denial.--If a proposal under paragraph (1) is denied,
the response shall specify the reasons for denial.''.
(g) Program Oversight, Monitoring, and Evaluation.--Section 207 of
the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C.
1726a) is amended by adding at the end the following:
``(f) Program Oversight, Monitoring, and Evaluation.--
``(1) In general.--The Administrator, in consultation with
the Secretary, shall establish systems to improve, monitor, and
evaluate the effectiveness and efficiency of assistance
provided under this title in order to maximize the impact of
such assistance. Such systems shall include the following:
``(A) program monitors in countries receiving
assistance under this title;
``(B) country and regional food aid impact
evaluations;
``(C) evaluations of best practices for food aid
programs;
``(D) evaluation of monetization programs;
``(E) early warning assessments to prevent famines;
and
``(F) upgraded information technology systems.
``(2) Implementation report.--Not later than 180 days after
the date of enactment of the Farm, Nutrition, and Bioenergy Act
of 2007, the Administrator shall submit to the appropriate
congressional committees a report on efforts undertaken to
implement paragraph (1).
``(3) Government accountability office.--Not later than 270
days after the date of the submission of the report under
paragraph (2), the Comptroller General of the United States
shall submit to the appropriate congressional committees a
report that--
``(A) reviews and comments on the report under
paragraph (2); and
``(B) provides recommendations regarding any
additional actions necessary to improve the monitoring
and evaluation of assistance provided under this title.
``(4) Annual report.--Not later than February 1 of each
year, the Administrator shall submit to the appropriate
congressional committees a report assessing the systems
implemented under paragraph (1) and their impact on the
effectiveness and efficiency of assistance provided under this
title.
``(5) Funding.--In addition to other funds made available
for the Administrator to perform monitoring of emergency food
assistance, the Administrator may implement this subsection
using up to $15,000,000 of funds made available under this
title for each of the fiscal years 2008 through 2012, except
for paragraph (1)(F), for which only $2,500,000 shall be made
available during fiscal year 2008.
``(6) Appropriate congressional committees defined.--In
this subsection, the term `appropriate congressional
committees' means--
``(A) the Committee on Foreign Affairs and the
Committee on Agriculture of the House of
Representatives; and
``(B) the Committee on Agriculture, Nutrition, and
Forestry of the Senate.''.
(h) Shelf-Stable Prepackaged Foods.--Section 208(f) of the
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C.
1726b(f)) is amended--
(1) by striking ``2007'' and insert ``2012''; and
(2) by striking ``$3,000,000'' and inserting ``$7,000,000''
(i) Prepositioning.--Section 407(c)(4) of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1736a(c)(4)) is
amended--
(1) by striking ``Funds'' and inserting ``(A) In general.--
Funds'';
(2) by striking ``2007'' and inserting ``2012'';
(3) by striking ``$2,000,000'' and inserting
``$8,000,000''; and
(4) by adding at the end the following new subparagraph:
``(B) Additional prepositioning sites.--
``(i) Feasibility assessment.--On or after
the date of the enactment of the Farm,
Nutrition, and Bioenergy Act of 2007, the
Administrator is authorized to carry out
assessments for the establishment of not less
than two sites to determine the feasibility of
and costs associated with using such sites for
the purpose of storing and handling
agricultural commodities for prepositioning in
foreign countries.
``(ii) Establishment of sites.--Based on
the results of the assessments carried out
under clause (i), the Administrator is
authorized to establish additional sites for
pre-positioning in foreign countries.
``(iii) Authorization of appropriations.--
To carry out this subparagraph, there are
authorized to be appropriated to the
Administrator such sums as may be necessary for
each of the fiscal years 2008 through 2012.''.
(j) Annual Reports.--Section 407(f) of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1736a(f)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (B), by adding at the end
before the semicolon the following: ``, and the amount
of funds, tonnage levels, and types of activities for
non-emergency food assistance programs under title II
of this Act'';
(B) in subparagraph (C), by adding at the end
before the semicolon the following: ``, and a general
description of the projects and activities
implemented''; and
(C) so that subparagraph (D) reads as follows:
``(D) an assessment of the progress toward reducing
food insecurity in the populations receiving food
assistance from the United States.''; and
(2) in paragraph (3), by striking ``January 15'' and
inserting ``March 1''.
(k) Expiration of Assistance.--Section 408 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1736b) is
amended by striking ``2007'' and inserting ``2012''.
(l) Authorization of Appropriations.--Subsection (a) of section 412
of the Agricultural Trade Development and Assistance Act of 1954 (7
U.S.C. 1736f) is amended to read as follows:
``(a) Authorization of Appropriations.--For each of the fiscal
years 2008 through 2012, there are authorized to be appropriated to the
President--
``(1) such sums as may be necessary to carry out the
concessional credit sales program established under title I,
``(2) $2,500,000,000 to carry out the emergency and non-
emergency food assistance programs under title II, and
``(3) such sums as may be necessary to carry out the grant
program established under title III,
including such amounts as may be required to make payments to the
Commodity Credit Corporation to the extent the Commodity Credit
Corporation is not reimbursed under the programs under this Act for the
actual costs incurred or to be incurred by such Corporation in carrying
out such programs.''.
(m) Micronutrient Fortification Programs.--
(1) Purpose.--Subsection (a)(2)(C) of section 415 of the
Agricultural Trade Development and Assistance Act of 1954 (7
U.S.C. 1736g-2) is amended--
(A) by striking ``using the same mechanism that was
used to assess the micronutrient fortification program
in'' and inserting ``utilizing recommendations from'';
and
(B) by striking ``with funds from the Bureau for
Humanitarian Response of the United States Agency for
International Development'' and inserting ``with
implementation by an independent entity with proven
impartiality and a mechanism that incorporates the
range of stakeholders implementing programs under title
II of this Act as well as other food assistance
industry experts''.
(2) Termination of authority.--Subsection (d) of such
section is amended by striking ``2007'' and inserting ``2012''.
(n) John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.--
(1) Minimum funding.--Section 501(d) of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1737(d))
is amended--
(A) by inserting ``or $10,000,000, whichever amount
is greater,'' after ``not less than 0.5 percent''; and
(B) by striking ``2002 through 2007'' and inserting
``2008 through 2012''.
(2) Authorization of appropriations.--Section 501(e) of the
Agricultural Trade Development and Assistance Act of 1954 (7
U.S.C. 1737(e)) is amended by striking paragraph (1) and
inserting the following new paragraph:
``(1) In general.--To carry out programs under this
section, there is authorized to be appropriated for each of
fiscal years 2008 through 2012 the following amounts:
``(A) $10,000,000 for sub-Saharan African and
Caribbean Basin countries.
``(B) $5,000,000 for all other countries not
included in subparagraph (A).''.
(o) References to Committee.--The Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1691 et seq.) is amended by
striking ``Committee on International Relations'' each place it appears
and inserting ``Committee on Foreign Affairs''.
SEC. 3002. EXPORT CREDIT GUARANTEE PROGRAM.
(a) Repeal of Supplier Credit Guarantee Program and Intermediate
Export Credit Guarantee Program.--
(1) Repeals.--Section 202 of the Agricultural Trade Act of
1978 (7 U.S.C. 5622) is amended--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``(1)''
and all that follows through ``The Commodity''
and inserting ``The Commodity'';
(ii) in paragraph (1), by striking ``3-year
period'' and inserting ``6-month period''; and
(iii) by striking paragraphs (2) and (3);
(B) by striking subsections (b) and (c); and
(C) by redesignating subsections (d) through (l) as
subsections (b) through (j), respectively.
(2) Conforming amendments.--The Agricultural Trade Act of
1978 is amended--
(A) in section 202 (7 U.S.C. 5622)--
(i) in subsection (b)(4) (as redesignated
by paragraph (1)(C)), by striking ``,
consistent with the provisions of subsection
(c)'';
(ii) in subsection (d) (as redesignated by
paragraph (1)(C))--
(I) by striking ``(1)'' and all
that follows through ``The Commodity''
and inserting ``The Commodity''; and
(II) by striking paragraph (2); and
(iii) in subsection (g)(2) (as redesignated
by paragraph (1)(C)), by striking ``subsections
(a) and (b)'' and inserting ``subsection (a)'';
and
(B) in section 211 (7 U.S.C. 5641), by striking
subsection (b) and inserting the following:
``(b) Export Credit Guarantee Programs.--(1) The Commodity Credit
Corporation shall make available for each of fiscal years 2008 through
2012 not less than $5,500,000,000 in credit guarantees under section
202(a).
``(2) Section 202(k)(1) of the Agricultural Trade Act of 1978 (7
U.S.C. 5622(k)(1)) is amended by striking `2007' and inserting
`2012'.''.
SEC. 3003. MARKET ACCESS PROGRAM.
(a) Organic Commodities.--Section 203(a) of the Agricultural Trade
Act of 1978 (7 U.S.C. 5623(a)) is amended by inserting after
``agricultural commodities'' the following: ``(including commodities
that are organically produced (as defined in section 2103 of the
Organic Foods Production Act of 1990 (7 U.S.C. 6502))''.
(b) Funding.--Section 211(c)(1)(A) of the Agricultural Trade Act of
1978 (7 U.S.C. 5641(c)(1)(A)) is amended by striking ``, and
$200,000,000 for each of fiscal years 2006 and 2007'' and inserting
``$200,000,000 for each of fiscal years 2006 and 2007, and $225,000,000
for each of fiscal years 2008 through 2012''.
SEC. 3004. FOOD FOR PROGRESS ACT OF 1985.
The Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended by
striking ``2007'' each place it appears and inserting ``2012''.
SEC. 3005. REAUTHORIZATION OF MCGOVERN-DOLE INTERNATIONAL FOOD FOR
EDUCATION AND CHILD NUTRITION PROGRAM.
(a) Administration of Program.--Section 3107 of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 1736o-1) is amended--
(1) in subsection (d), in the matter preceding paragraph
(1), by striking ``The President shall designate 1 or more
Federal agencies to'' and inserting ``The Secretary shall'';
(2) in subsection (f)(2), in the matter preceding
subparagraph (A), by striking ``implementing agency'' and
inserting ``Secretary''; and
(3) in subsections (c)(2)(B), (f)(1), (h)(1) and (2), and
(i), by striking ``President'' each place it appears and
inserting ``Secretary''.
(b) Funding.--Section 3107(l) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 1736o-1(l)) is amended--
(1) by striking paragraphs (1) and (2) and inserting the
following:
``(1) Use of commodity credit corporation funds.--Of the
funds of the Commodity Credit Corporation, the Secretary shall
use to carry out this section--
``(A) $0 for fiscal year 2008;
``(B) $140,000,000 for fiscal year 2009;
``(C) $170,000,000 for fiscal year 2010;
``(D) $230,000,000 for fiscal year 2011;
``(E) $300,000,000 for fiscal year 2012; and
``(F) $0 for fiscal year 2013.'';
(2) by redesignating paragraph (3) as paragraph (2); and
(3) in paragraph (2) (as redesignated by paragraph (2)), by
striking ``any Federal agency implementing or assisting'' and
inserting ``the Department of Agriculture or any other Federal
agency assisting''.
SEC. 3006. BILL EMERSON HUMANITARIAN TRUST.
Section 302 of the Bill Emerson Humanitarian Trust Act (7 U.S.C.
1736f-1) is amended by striking ``2007'' each place it appears in
subsection (b)(2)(B)(i) and paragraphs (1) and (2) of subsection (h)
and inserting ``2012''.
SEC. 3007. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.
Section 3205 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 5680) is amended so that subsection (d) reads as follows:
``(d) Funding.--
``(1) Commodity credit corporation.--The Secretary shall
use the funds, facilities, and authorities of the Commodity
Credit Corporation to carry out this section.
``(2) Funding amount.--The Secretary shall use the funds
of, or an equal value of commodities owned by, the Commodity
Credit Corporation to carry out this section--
``(A) $4,000,000 for fiscal year 2008;
``(B) $6,000,000 for fiscal year 2009;
``(C) $8,000,000 for fiscal year 2010;
``(D) $10,000,000 for each of fiscal years 2011
through 2012.''.
SEC. 3008. TECHNICAL ASSISTANCE FOR THE RESOLUTION OF TRADE DISPUTES.
(a) In General.--The Secretary of Agriculture may provide
monitoring, analytic support, and other technical assistance to limited
resource persons and organizations associated with agricultural trade
(as determined by the Secretary) to address unfair trade practices of
foreign countries and to reduce trade barriers.
(b) Authorization of Appropriations.--There are authorized such
sums as necessary to carry out subsection (a).
SEC. 3009. REPRESENTATION BY THE UNITED STATES AT INTERNATIONAL
STANDARD-SETTING BODIES.
(a) In General.--Pursuant to the authority of the Secretary
provided by section 1458(a)(3) of the Food and Agriculture Act of 1977
(7 U.S.C. 3291(a)(3)), the Secretary is authorized to enhance United
States support for international organizations, including the Food and
Agriculture Organization, the Codex Alimentarius Commission, the
International Plant Protection Convention, and the World Organization
for Animal Health, that establish international standards regarding
food, food safety, plants, and animals, respectively, by funding
additional positions of Associate Professional Officers to address
sanitary and phytosanitary priorities of the United States within
applicable international organizations.
(b) Authorization of Appropriations.--There are authorized to be
appropriated such sums as necessary to carry out this section for each
of fiscal years 2007-2012.
SEC. 3010. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.
(a) Foreign Market Development Cooperator Program.--Subsection (c)
of section 702 of the Agricultural Trade Act of 1978 (7 U.S.C. 5722) is
amended by striking ``Committee on International Relations'' and
inserting ``Committee on Foreign Affairs''.
(b) Funding.--Subsection (a) of section 703 of such Act (7 U.S.C.
5723) is amended by striking ``2002 through 2007'' and inserting ``2008
through 2012''.
SEC. 3011. EMERGING MARKETS.
The Food, Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 5622 note; Public Law 101-624) is amended in each of subsections
(a) and (d)(1)(A)(i) by striking ``2007'' and inserting ``2012.
SEC. 3012. EXPORT ENHANCEMENT PROGRAM.
Section 301(e)(1)(G) of the Agricultural Trade Act of 1978 (7
U.S.C. 5651(e)(1)(G)) is amended by striking ``2007'' and inserting
``2012''.
SEC. 3013. MINIMUM LEVEL OF NONEMERGENCY FOOD ASSISTANCE.
Section 412 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1736f) is amended by inserting at the end the
following new subsection:
``(e) Minimum Level of Nonemergency Food Assistance.--
``(1) Funds.--Of the amounts made available to carry out
emergency and nonemergency food assistance programs under title
II, not less than $450,000,000 for each of fiscal years 2008
through 2012 shall be expended for nonemergency food assistance
programs under title II.
``(2) Exception.--The Administrator may use less than the
amount specified in paragraph (1) for a fiscal year for
nonemergency food assistance programs under title II if--
``(A) the Administrator submits to the Committees
on Foreign Affairs, Agriculture, and Appropriations of
the House of Representatives and the Committees on
Appropriations and Agriculture, Nutrition, and Forestry
of the Senate a report requesting the reduction and
containing the reasons for the reduction; and
``(B) following submission of the report, Congress
enacts a law approving the Administrator's request.''.
SEC. 3014. GERMPLASM CONSERVATION.
(a) Contribution.--The Administrator of the United States Agency
for International Development shall contribute funds to endow the
Global Crop Diversity Trust (in this section referred to as the
``Trust'') to assist in the conservation of genetic diversity in food
crops through the collection and storage of the germplasm of such crops
in a manner that provides for--
(1) the maintenance and storage of seed collections;
(2) the documentation and cataloguing of the genetics and
characteristics of conserved seeds to ensure efficient
reference for researchers, plant breeders, and the public;
(3) building the capacity of seed collection in developing
countries;
(4) making information regarding crop genetic data publicly
available for researchers, plant breeders, and the public (for
example, through the provision of an accessible Internet site);
(5) the operation and maintenance of a back-up facility
wherein is stored duplicate samples of seeds, as a hedge
against natural or man-made disasters; and
(6) oversight designed to ensure international coordination
of these actions and efficient, public accessibility to this
diversity through a cost-effective system.
(b) United States Contribution Limit.--The aggregate contributions
of United States Government funds provided to the Trust shall not
exceed 25 percent of the total of the funds contributed to the Trust
from all sources.
(c) Authorization.--There are authorized to be appropriated to
carry out this section a total of $60,000,000 over the period of fiscal
year 2008 through fiscal year 2012.
SEC. 3015. REPORT ON EFFORTS TO IMPROVE PROCUREMENT PLANNING.
(a) Report Required.--Not later than 90 days after the date of the
enactment of this Act, the Administrator of the United States Agency
for International Development and the Secretary of Agriculture shall
submit to the appropriate congressional committees a report on efforts
taken by both the United States Agency for International Development
and the Department of Agriculture to improve planning for food and
transportation procurement, including efforts to eliminate bunching of
food purchases.
(b) Contents.--The report required under subsection (a) should
include, among other things, a description of efforts taken to--
(1) improve coordination of food purchases by the United
States Agency for International Development and the Department
of Agriculture;
(2) increase flexibility in procurement schedules;
(3) increase utilization of historical analyses and
forecasting; and
(4) improve and streamline legal claims processes for
resolving transportation disputes.
(c) Appropriate Congressional Committees Defined.--In this section,
the term ``appropriate congressional committees'' means--
(1) the Committee on Foreign Affairs and the Committee on
Agriculture of the House of Representatives; and
(2) the Committee on Agriculture, Nutrition, and Forestry
of the Senate.
SEC. 3016. INTERNATIONAL DISASTER ASSISTANCE UNDER THE FOREIGN
ASSISTANCE ACT OF 1961.
For each of the fiscal years 2008 through 2012, of the amounts made
available to carry out section 491 of the Foreign Assistance Act of
1961 (22 U.S.C. 2292), not less than $40,000,000 for each such fiscal
year is authorized be made available for the purposes of famine
prevention and relief under such section.
TITLE IV--NUTRITION PROGRAMS
Subtitle A--Food Stamp Program
Sec. 4001. Renaming the food stamp program.
Sec. 4002. Definition of drug addiction or alcoholic treatment and
rehabilitation program.
Sec. 4003. Nutrition education.
Sec. 4004. Food distribution on Indian reservations.
Sec. 4005. Excluding combat related pay from countable income.
Sec. 4006. Increasing the standard deduction.
Sec. 4007. Excluding dependent care expenses.
Sec. 4008. Adjusting countable resources for inflation.
Sec. 4009. Excluding education accounts from countable income.
Sec. 4010. Excluding retirement accounts from countable income.
Sec. 4011. Deobligate food stamp coupons.
Sec. 4012. Allow for the accrual of benefits.
Sec. 4013. Increasing the minimum benefit.
Sec. 4014. State option for telephonic signature.
Sec. 4015. Review of major changes in program design.
Sec. 4016. Grants for simple application and eligibility determination
systems and improved access to benefits.
Sec. 4017. Civil money penalties and disqualification of retail food
stores and wholesale food concerns.
Sec. 4018. Major systems failures.
Sec. 4019. Funding of employment and training programs.
Sec. 4020. Reductions in payments for administrative costs.
Sec. 4021. Cash payment pilot projects.
Sec. 4022. Findings of Congress regarding Secure Supplemental Nutrition
Assistance program nutrition education.
Sec. 4023. Nutrition education and promotion initiative to address
obesity.
Sec. 4024. Authorization of appropriations.
Sec. 4025. Consolidated block grants for Puerto Rico and American
Samoa.
Sec. 4026. Study on comparable access to Secure Supplemental Nutrition
Assistance Program benefits for Puerto
Rico.
Sec. 4027. Reauthorization of community food project competitive
grants.
Sec. 4028. Emergency food assistance program.
Subtitle B--Commodity Distribution
Sec. 4201. Authorization of appropriations.
Sec. 4202. Distribution of surplus commodities; special nutrition
projects.
Sec. 4203. Commodity distribution program.
Subtitle C--Child Nutrition and Related Programs
Sec. 4301. Purchase of fresh fruits and vegetables for distribution to
schools and service institutions.
Sec. 4302. Buy American requirements.
Sec. 4303. Expansion of fresh fruit and vegetable program.
Sec. 4304. Purchases of locally produced foods.
Subtitle D--Miscellaneous
Sec. 4401. Seniors farmers' market nutrition program.
Sec. 4402. Congressional Hunger Center.
Sec. 4403. Joint nutrition monitoring and related research activities.
Sec. 4404 Sense of the Congress.
Subtitle A--Food Stamp Program
SEC. 4001. RENAMING THE FOOD STAMP PROGRAM.
(a) Amendments to the Food Stamp Act of 1977.--
(1) References amended.--The provisions of the Food Stamp
Act of 1977 (7 U.S.C. 2011 et seq.)--
(A) specified in paragraph (2)(A) are amended in
the section heading by striking ``food stamp'' each
place it appears and inserting ``secure supplemental
nutrition assistance'';
(B) specified in paragraph (2)(B) are amended in
the subsection heading by striking ``food stamp'' each
place it appears and inserting ``secure supplemental
nutrition assistance'';
(C) specified in paragraph (2)(C) are amended by
striking each place it appears ``food stamp recipient''
and inserting ``member of a household that receives
Secure Supplemental Nutrition Assistance Program
benefits'',
(D) specified in paragraph (2)(D) are amended by
striking ``food stamp recipients'' each place it
appears and inserting ``members of households that
receive Secure Supplemental Nutrition Assistance
Program benefits'',
(E) specified in paragraph (2)(E) are amended by
striking ``food stamp households'' each place it
appears and inserting ``households that receive Secure
Supplemental Nutrition Assistance Program benefits'';
(F) specified in paragraph (2)(F) are amended by
striking ``Simplified Food Stamp Program'' each place
it appears and inserting ``Simplified Secure
Supplemental Nutrition Assistance Program'';
(G) specified in paragraph (2)(H) are amended by
striking ``food stamp participants'' each place it
appears and inserting ``participants in the Secure
Supplemental Nutrition Assistance Program'';
(H) specified in paragraph (2)(I) are amended by
striking ``food stamp informational activities'' each
place it appears and inserting ``informational
activities relating to the Secure Supplemental
Nutrition Assistance Program'';
(I) specified in paragraph (2)(J) are amended by
striking ``food stamp caseload'' each place it appears
and inserting ``caseload under the Secure Supplemental
Nutrition Assistance Program'';
(J) specified in paragraph (2)(K) are amended by
striking ``State's food stamp households'' each place
it appears and inserting ``the number of households in
the State receiving Secure Supplemental Nutrition
Assistance Program benefits'';
(K) specified in paragraph (2)(L) are amended in
the section heading by striking ``food stamp portion''
each place it appears and inserting ``secure
supplemental nutrition assistance program benefits'';
(L) specified in paragraph (2)(M) are amended by
striking ``food stamps'' each place it appears and
inserting ``Secure Supplemental Assistance Nutrition
Program benefits'';
(M) specified in paragraph (2)(N) are amended by
striking ``Food stamp program'' each place it appears
and inserting ``Secure Supplemental Nutrition
Assistance Program'';
(N) specified in paragraph (2)(o) are amended by
striking ``food stamp program benefits'' each place it
appears and inserting ``Secure Supplemental Nutrition
Program benefits''; and
(O) specified in paragraph (2)(O) are amended by
striking ``food stamp program'' each place it appears
and inserting ``Secure Supplemental Nutrition
Assistance Nutrition Program''.
(2) Provisions referred to.--The provisions of the of the
Food Stamp Act of 1977 referred to in paragraph (1) are the
following:
(A) Sections 4 and 26.
(B) Section 6(j).
(C) Section 6(o)(6)(A)(ii).
(D)(i) Subparagraphs (D) and (E) of section
6(o)(6);
(ii) sections 16(h)(1)(E)(i) and 12(a); and
(iii) paragraphs (1)(B)(ii)(II) and (3)(B) of
section 17(b).
(E) Sections 7(h)(3)(B)(ii), 9(b)(1), 12(a), and
17(b)(1)(B)(ii)(I).
(F) Sections 11(e)(25) and 26(b).
(G) Section 11(f)(2)(B).
(H) Section 16(a).
(I) Section 16(e)(9)(C).
(J) Section 17(b)(1)(B)(iii)(I).
(K) Section 22.
(L)(i) Subsections (d)(3) and (o)(6)(A)(i) of
section 6;
(ii) paragraphs (2)(B)(v)(II) and (14) of section
11(e); and
(iii) sections 12(e)(16), 17(b)(3)(C), and
18(a)(3)(A)(ii).
(M) Section 3(h).
(N)(i) In section 6--
(I) subsection (h); and
(II) in subsection (o)--
(aa) paragraph (2); and
(bb) subclauses (IV) and (V) of
paragraph (6)(A)(ii).
(ii) Section 7(k)(2).
(iii) In section 11--
(I) subsection (e)(25)(A);
(II) paragraphs (1), (2), and (3) of
subsection (s); and
(III) subsection (t)(1)(B).
(iv) In section 17--
(I) subsection (a)(2);
(II) paragraphs (1)(A), (2), and (3)(D) of
subsection (b);
(III) paragraphs (1)(B), (2)(C)(ii), and
(3)(E) of subsection (d); and
(IV) subsections (e) and (f).
(v) Section 21(d)(3).
(O)(i) Sections 2, 3(h), and 4.
(ii) In section 5--
(I) subsections (a), (b), (c), and (d);
(II) clauses (ii)(III) and (iv)(IV) of
subsection (e)(6)(C);
(III) paragraphs (1), (3), and (6)(B)(iv)
of subsection (g); and
(IV) subsections (h)(2)(A) and (k)(4)(B).
(iii) In section 6--
(I) subsections (a) and (b);
(II) in subsection (d)(1)--
(aa) subparagraphs (A) and (B);
(bb) clauses (i), (ii), and (iii)
of subparagraph (C); and
(cc) clauses (v) and (vi) of
subparagraph (D);
(III) paragraphs (2)(C), (3), and (4)(A)(i)
of subsection (d);
(IV) subsections (e), (f), and (h);
(V) paragraphs (1) and (2) of subsection
(i); and
(VI) subsections (j), (k), (l)(1), (m)(1),
(n), (o)(5)(A);
(iv) In section 7--
(I) subsections (a), (b), and (g);
(II) paragraphs (1) and (2)(B) of
subsection (j); and
(III) in subsection (k)--
(aa) paragraph (3); and
(bb) subparagraphs (B)(ii) and (C)
of paragraph (4).
(v) In section 8--
(I) subsections (a), (c)(2), and (d)(2);
(II) in subsection (f)--
(aa) clauses (i)(II)(aa), (ii)(I),
and (iv) of paragraph (1)(D); and
(bb) paragraph (3)(B)(ii)(II)(bb).
(vi) In section 9--
(I) paragraphs (1) and (3) of subsection
(a); and
(II) subsections (b)(1), (d), (e), and (g).
(vii) In section 11--
(I) subsections (c) and (d);
(II) in subsection (e)--
(aa) paragraph (1)(A);
(bb) clauses (i) and (iv) of
paragraph (2)(B); and
(cc) paragraphs (10), (17),
(20)(B), and (22);
(III) subsections (f)(1), (g), (i), and
(j)(1);
(IV) paragraphs (1), (2), (3), and (4) of
subsection (o);
(V) subsections (p) and (q); and
(VI) paragraphs (2)(A) and (B)(4)(A) of
subsection (t).
(viii) Sections 12(a) and 14(a)(1).
(ix) Subsections (b)(1) and (c) of section 15.
(x) In section 16--
(I) subsection (a);
(II) paragraph (1), (2), and (3) of
subsection (b);
(III) in subsection (c)--
(aa) the matter preceding
subparagraph (A);
(bb) subparagraphs (D)(i)(II) and
(F)(iii)(I) of paragraph (1); and
(cc) subparagraphs (A), (B), and
(C) of paragraph (9);
(IV) subsections (e), (g), and (i)(1); and
(V) in subsection (k)--
(aa) subparagraphs (A) and (B) of
paragraph (2);
(bb) subparagraphs (A) and (B)(i)
of paragraph (3); and
(cc) subparagraphs (A)(ii) and
(B)(iv)(II) of paragraph (5).
(xi) In section 17--
(I) subsection (a)(1);
(II) in subsection (b)--
(aa) subparagraphs (A) and (B)(i)
of paragraph (1); and
(bb) subparagraph (2);
(III) subsection (c);
(IV) subparagraphs (A) and (C) of
subsection (d) (2); and
(V) subsections (e), (g), and (h)(2).
(xii) Subsections (a)(3)(D), (b), (d), and (e) of
section 18.
(xiii) Subsections (a)(1) and (f) of section 20.
(xiv) In section 21--
(I) subsection (a);
(II) in subsection (b)--
(aa) in paragraph (2)--
(AA) clause (i) and (ii) of
subparagraph (A);
(BB) subparagraphs (B) and
(C)(i);
(CC) clause (ii), and
subclauses (II), (III), and
(IV) of clause (iii), of
subparagraph (F); and
(DD) subparagraph (G)(i);
(bb) paragraph (3);
(cc) in paragraph (4)--
(AA) subparagraphs (A) and
(B); and
(BB) the flush text at the
end;
(dd) paragraphs (5) and (7);
(III) subsection (C)(2)(B);
(IV) paragraphs (1)(A), (2), and (3) of
subsection (d); and
(V) paragraphs (1) and (2) of subsection
(f).
(xv) In section 22--
(I) subsection (a)(1);
(II) in subsection (b)--
(aa) paragraph (2);
(bb) in paragraph (3)--
(AA) subparagraphs (A) and
(B)(ii);
(BB) clauses (ii) and (iii)
of subparagraph (C);
(CC) subparagraph (D)(ii);
and
(DD) clauses (i), (ii), and
(iv) of subparagraph (E);
(cc) paragraph (5);
(dd) subparagraphs (B) and (C) of
paragraph (6);
(ee) subparagraphs (A) and (B) of
paragraph (7);
(ff) paragraphs (8) and (9);
(gg) in paragraph (10)--
(AA) subparagraph (A)
(BB) clauses (i) and (ii)
of subparagraph (B); and
(CC) subparagraph (C); and
(hh) paragraphs (11), (12), and
(13);
(III) in subsection (d)--
(aa) paragraph (1)(B)(i); and
(bb) paragraph (3); and
(IV) subsections (g)1 and (h).
(xvi) Section 23(c).
(xvii) In section 26--
(I) subparagraphs (B) and (C) of subsection
(c)(4); and
(II) subsection (f)(1).
(b) References in Other Laws, Document, and Records of the United
States.--In any law (excluding the Food Stamp Act of 1977), regulation,
rule, document, or record of the United States--
(1) a reference to food stamp recipients shall be deemed to
be a reference to recipients of Secure Supplemental Nutrition
Assistance Program benefits;
(2) a reference to food stamp households shall be deemed to
be a reference to households that receive Secure Supplemental
Nutrition Assistance Program benefits;
(3) a reference to the Simplified Food Stamp Program shall
be deemed to be a reference to the Simplified Secure
Supplemental Nutrition Assistance Program;
(4) a reference to food stamp participants shall be deemed
to be a reference to participants in the Secure Supplemental
Nutrition Assistance Program;
(5) a reference to food stamp informational activities
shall be deemed to be a reference to informational activities
relating to the Secure Supplemental Nutrition Assistance
Program;
(6) a reference to food stamp caseload shall be deemed to
be a reference to caseload under the Secure Supplemental
Nutrition Assistance Program;
(7) a reference to food stamps shall be deemed to be a
reference to Secure Supplemental Nutrition Assistance Program
benefits; and
(8) a reference to the food stamp program shall be deemed
to be a reference to Secure Supplemental Nutrition Assistance
Program.
SEC. 4002. DEFINITION OF DRUG ADDICTION OR ALCOHOLIC TREATMENT AND
REHABILITATION PROGRAM.
Section 3(f) of the Food Stamp Act of 1977 (7 U.S.C. 2012(f)) is
amended by striking `` center, under part B of title XIX of the Public
Health Service Act (42 U.S.C. 300x et seq.)'' and inserting ``center,
that is--
``(1) tax exempt; and
``(2) certified by the State title XIX agency, under part B
of title XIX of the Public Health Service Act (42 U.S.C. 300x
et seq.), as receiving funding under part B, eligible to
receive funding under part B even if no funds are being
received, or operating to further the purposes of part B,
except that nothing in this paragraph shall be construed to
require State or Federal licensure to meet these
requirements;''.
SEC. 4003. NUTRITION EDUCATION.
(a) Authority to Provide Nutrition Education.--Section 4(a) of the
Food Stamp Act of 1977 (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(f) of the Food Stamp Act of 1977 (7
U.S.C. 2020(f)) is amended to read as follows:
``(f) Nutrition Education.--
``(1) In general.--State agencies may implement a nutrition
education program for individuals eligible for Secure
Supplemental Nutrition Assistance Program benefits that
promotes healthy food choices consistent with current Dietary
Guidelines.
``(2) Delivery of nutrition education.--State agencies may
deliver nutrition education directly to eligible persons or
through agreements with the Cooperative State Research,
Education and Extension Service, including through the expanded
food and nutrition education under section 3(d) of the Act of
May 8, 1914 (7 U.S.C. 343(d)), and other State and community
health and nutrition providers and organizations.
``(3) Nutrition education state plans.--State agencies
wishing to provide nutrition education under this subsection
shall submit a Nutrition Education State Plan to the Food and
Nutrition Service for approval. The plan shall identify the
uses of the funding for local projects and conform to standards
set forth by the Secretary in regulations or guidance. State
costs for providing nutrition education under this subsection
shall be reimbursed pursuant to section 16(a).
``(4) Notification.--Whenever practicable, State agencies
shall notify applicants, participants, and eligible program
participants of the availability of nutrition education under
this subsection.''.
SEC. 4004. FOOD DISTRIBUTION ON INDIAN RESERVATIONS.
(a) In General.--Section 4 of the Food Stamp Act of 1977 (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 Secure 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 a 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 subparagraph (A), then the
tribal organization shall administer the distribution.
``(C) Prohibition.--The Secretary shall not approve
any plan for a distribution described in subparagraph
(A) that permits any household on any Indian
reservation to participate simultaneously in the Secure
Supplemental Nutrition Assistance Program and the
distribution of federally donated foods.
``(3) Disqualified participants.--The Secretary shall
ensure that 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 Secure Supplemental Nutrition Assistance
Program under this Act.
``(4) Administrative costs.--The Secretary is authorized to
pay such amounts for administrative costs of such distribution
on Indian reservations as the Secretary finds necessary for
effective administration of such distribution by a State agency
or tribal organization.
``(5) Traditional and local foods fund.--
``(A) In general.--The Secretary shall establish a
fund to purchase traditional and locally-grown food,
designated by region, for recipients of food
distributed under this subsection.
``(B) Native american producers.--For recipients of
food distributed 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, in conjunction with the Indian
Tribal Organizations, will determine the definition of
traditional and locally-grown.
``(D) Authorization of appropriations.--There is
authorized to be appropriated to the Secretary
$5,000,000 for each of the fiscal years 2008 through
2012 to carry out subparagraph (A).''.
(b) FDPIR Food Package.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Agriculture shall submit to the
Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate a
report that describes--
(1) how the Secretary derives the process for determining
the food package under the Food Distribution Program on Indian
Reservations established under section 4(b) of the Food Stamp
Act of 1977 (7 U.S.C. 2013(b)) (referred to in this subsection
as the ``food package'');
(2) the extent to which the food package--
(A) 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);
(B) addresses (or fails to address) the nutritional
and health challenges that are specific to Native
Americans; and
(C) addresses (or fails to address) the nutritional
needs of low-income Native Americans, compared to the
Secure Supplemental Nutrition Assistance Program;
(3) any plans of the Secretary to revise and update the
food package to conform with the most recent Dietary Guidelines
for Americans, including any costs associated with the planned
changes; and
(4) if the Secretary does not plan changes to the food
package, the rationale of the Secretary for retaining the food
package.
SEC. 4005. EXCLUDING COMBAT RELATED PAY FROM COUNTABLE INCOME.
Section (5)(d) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is
amended--
(1) by striking ``and (18)'', and inserting ``(18)'', and
(2) by inserting before the period at the end the
following: ``and (19) any additional payment received under
Chapter 5 of title 37, United States Code, by (or as an
allotment to or transfer from) a member of the United States
Armed Forces deployed to a designated combat zone for the
duration of the member's deployment to or service in a combat
zone if the additional pay was not received immediately prior
to serving in that or another combat zone.''.
SEC. 4006. INCREASING THE STANDARD DEDUCTION.
Section (5)(e)(1) of the Food Stamp Act of 1977 (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 period at the end, and
inserting the following: ``not less than $145, $248, $205, and
$128, respectively. On October 1, 2008, and each October 1
thereafter, such standard deduction shall be an amount that is
equal to the amount from the previous fiscal year adjusted to
the nearest lower dollar increment to reflect changes in the
Consumer Price Index for All Urban Consumers published by the
Bureau of Labor Statistics, for items other than food, for the
12 months ending the preceding June 30.''; and
(2) in subparagraph (B)(ii) by striking ``not less than
$269.'' and inserting the following: ``not less than $291. On
October 1, 2008, and each October 1 thereafter, such standard
deduction shall be an amount that is equal to the amount of the
previous fiscal year adjusted to the nearest dollar increment
to reflect changes in the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics, for
items other than food, for the 12 months ending the preceding
June 30.''.
SEC. 4007. EXCLUDING DEPENDENT CARE EXPENSES.
Section (5)(e)(3)(A) of the Food Stamp Act of 1977 (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. 4008. ADJUSTING COUNTABLE RESOURCES FOR INFLATION.
Section (5)(g) of the Food Stamp Act of 1977 (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,
2007, and each October 1 thereafter, the
amounts in subparagraph (A) shall be adjusted
to the nearest $100 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.''.
SEC. 4009. EXCLUDING EDUCATION ACCOUNTS FROM COUNTABLE INCOME.
Section (5)(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is
amended by adding at the end the following:
``(7) Exclusion of education accounts from countable
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
also exclude from financial resources under this
subsection the value of any program or account included
in any successor or similar provision that is enacted
and determined to be exempt from taxation under the
Internal Revenue Code of 1986.''.
SEC. 4010. EXCLUDING RETIREMENT ACCOUNTS FROM COUNTABLE INCOME.
Section (5)(g) of the of the Food Stamp Act of 1977 (7 U.S.C.
2014(g)), as amended by section 4009, is amended--
(1) in subsection (g)(2)(B)(v) by striking ``or retirement
account (including an individual account)'' and inserting
``account''; and
(2) adding at the end the following:
``(8) Exclusion of retirement accounts from countable
resources.--
``(A) Mandatory exclusions.--The Secretary shall
exclude from financial resources under this subsection
the value of any funds in a plan, contract, or account
as described in section 401(a), 403(a), 403(b), 408,
408A, 457(b), or 501(c)(18) of the Internal Revenue
Code of 1986 and the value of funds in a Federal Thrift
Savings Plan account as provided section 8439 of title
5, United States Code.
``(B) Discretionary exclusions.--
``(i) The Secretary may exclude from
financial resources under this subsection any
other retirement plans, contracts, or accounts
that have been determined to be tax qualified
retirement plans, contracts, or accounts, under
the Internal Revenue Code of 1986.
``(ii) The Secretary may also exclude from
financial resources under this subsection the
value of any program or account included in any
successor or similar provision that is enacted
and determined to be exempt from taxation under
the Internal Revenue Code of 1986.''.
SEC. 4011. DEOBLIGATE FOOD STAMP COUPONS.
(a) In General.--Section 7 of the Food Stamp Act of 1977 (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 BENEFITS.
``(a) In General.--Except as provided in subsection (j), EBT cards
shall be''.
(2) in subsection (b)--
(A) by striking ``(b) Coupons'' and inserting the
following:
``(b) Use.--Benefits''; and
(B) by striking ``: Provided further'' and all that
follows through ``denominations issued'';
(3) in subsection (c)--
(A) by striking ``(c) Coupons'' and inserting the
following:
``(c) Design.--
``(1) In general.--EBT cards'';
(B) in the 1st sentence by striking ``and define
their denomination''; and
(C) by striking the 2d 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 issuer''; and
(C) by striking ``section 11(e)(20)'' and all that
follows through the period and inserting ``section
11(e)(19).'';
(7) by amending subsection (g) to read as follows:
``(g) Benefit System.--
``(1) Cost.--The cost of documents or systems that may be
required by subsection (i) may not be imposed upon a retail
food store participating in the Secure Supplemental Nutrition
Assistance Program.
``(2) Devaluation and termination of issuance of paper
coupons.--
``(A) Coupon issuance.--Beginning on the effective
date of this subsection, no State shall issue any
coupon, stamp, certificate, or authorization card to a
household that receives benefits under this Act.
``(B) Ebt cards.--Beginning 1 year after the
effective date of this subsection, 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 in the 1-year period beginning on the
effective date of this subsection will no longer be an
obligation of the Federal Government and shall not be
redeemable.''.
(8) in subsection (h)(1) by striking ``coupons'' and
inserting ``benefits'';
(9) 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''; and
(10) in subsection (k)--
(A) by striking ``coupons in the form of'' each
place it appears and inserting ``benefits in the form
of''; and
(B) by striking ``a coupon issued in the form of''
each place it appears and inserting ``benefits in the
form of''.
(b) Conforming Amendments.--
(1) Section 3 of the Food Stamp Act of 1977 (7 U.S.C. 2012)
is amended--
(A) in subsection (a) by striking ``coupons'' and
inserting ``benefits'';
(B) by amending subsection (b) to read as follows:
``(b) `Benefit' means the value of assistance provided under this
Act to a household by means of an electronic benefit transfer under
section 7(i), or other means of providing assistance, as determined by
the Secretary.'';
(C) in the 1st sentence of subsection (c) by
striking ``authorization cards'' and inserting
``benefits'';
(D) in subsection (d) by striking ``or access
device'' and all that follows through ``number'';
(E) in subsection (e)--
(i) by striking ``coupon issuer'' and
inserting ``benefit issuer''; and
(ii) by striking ``coupons'' and inserting
``benefits'';
(F) by inserting after subsection (f) the
following:
``(f-1) Ebt Card.--The term `EBT card' means an electronic benefit
transfer card issued under section 7(i).'';
(G) in subsection (i)(5)(D) by striking ``coupons''
and inserting ``benefits''; and
(H) in subsection (t) by inserting ``including
point of sale devices,'' after ``other means of
access''.
(2) Section 4(a) of the Food Stamp Act of 1977 (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(i)(2)(E) of the Food Stamp Act of 1977 (7
U.S.C. 2014(i)(2)(E)) is amended by striking ``, as defined in
section 3(i) of this Act,''.
(4) Section 6(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2015(b)(1)) is amended--
(A) in subparagraph (B) by striking ``coupons or
authorization cards'' and inserting ``benefits''; and
(B) by striking ``coupons'' each place it appears
and inserting ``benefits''.
(5) Section 7(j)(5) is amended by striking ``coupon'' and
inserting ``benefit''.
(6) Section 8(b) of the Food Stamp Act of 1977 (7 U.S.C.
2017(b)) is amended by striking ``, whether through coupons,
access devices, or otherwise''.
(7) Section 9 of the Food Stamp Act of 1977 (7 U.S.C. 2018)
is amended--
(A) by striking ``coupons'' each place it appears
and inserting ``benefits''; and
(B) in subsection (a)--
(i) in paragraph (1) by striking ``coupon''
and inserting ``benefit''; and
(ii) in paragraph (3) by striking
``coupons, or to redeem''.
(8) Section 10 of the Food Stamp Act of 1977 (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 BENEFITS.
``Regulations''; and
(B) by striking ``coupons'' each place it appears
and inserting ``benefits''.
(9) Section 11 of the Food Stamp Act of 1977 (7 U.S.C.
2020) is amended--
(A) in subsection (e)--
(i) in paragraph (15) by striking ``when
using its authorization card in order to
receive its coupons'' and inserting ``when
receiving benefits''; and
(ii) in paragraph (19) by striking
``that,'' and all that follows through
``paragraph;'' and inserting ``that eligible
households may be required to present
photographic identification cards in order to
receive their benefits.'';
(B) in subsection (h) by striking ``coupon or
coupons'' and inserting ``benefits'';
(C) by striking ``coupon'' each place it appears
and inserting ``benefit''; and
(D) by striking ``coupons'' each place it appears
and inserting ``benefits''.
(10) Section 13 of the Food Stamp Act of 1977 (7 U.S.C.
2022) is amended by striking ``coupons'' each place it appears
and inserting ``benefits''.
(11) Section 15 of the Food Stamp Act of 1977 (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'' 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) in subsections (e) and (f) by striking
``coupon'' each place it appears and inserting
``benefit''; and
(F) in subsection (g) by striking ``coupon,
authorization cards or access devices'' and inserting
``benefits''; and
(12) Section 16(a) of the Food Stamp Act of 1977 (7 U.S.C.
2025(a)) is amended by striking ``coupons'' each place it
appears and inserting ``benefits''.
(13) Section 17 of the Food Stamp Act of 1977 (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)(v)--
(I) by striking ``countersigned
food coupons or similar''; and
(II) by striking ``food coupons''
and inserting ``EBT cards''; and
(ii) in subparagraph (C)(i)(I) by striking
``coupons'' and inserting ``EBT cards''; and
(C) in subsection (j) by striking ``coupon'' and
inserting ``benefit''.
(14) Section 21 of the Food Stamp Act of 1977 (7 U.S.C.
2030) is amended--
(A) in subsection (d)(3)--
(i) by striking ``food coupons'' and
inserting ``benefits''; and
(ii) by striking ``food stamp benefits''
and inserting ``benefits''.
(15) Section 22 of the Food Stamp Act of 1977 (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 ``benefit''.
(c) References in Other Laws, Documents, and Records of the United
States.--In any law (excluding the Food Stamp Act of 1977), regulation,
rule, document, or record of the United States, a reference to
``coupon'', ``authorization card'', or ``other access device'' as used
in the Food Stamp Act of 1977 as in effect before the date of the
enactment of this Act shall be deemed to be a reference to ``benefit''
as defined in such Act as in effect after the date of the enactment of
this Act.
SEC. 4012. ALLOW FOR THE ACCRUAL OF BENEFITS.
Section 7(i) of the Food Stamp Act of 1977 (7 U.S.C. 2016(i)) is
amended by adding at the end the following:
``(12) Recovering electronic benefits.--
``(A) A State agency may recover benefits from a
household's electronic benefits account because of
inactivity in the account after the household has not
accessed the account the lesser of--
``(i) 3 months during which the account has
continuously had a balance in excess of $1,000,
adjusted for changes in the thrifty food plan
since June 2007; or
``(ii) 12 months.
``(B) A household whose benefits are recovered
under subparagraph (A) shall receive notice and shall
have the benefits made available again upon a request
made during a period of not less than 12 months after
the recovery.''.
SEC. 4013. INCREASING THE MINIMUM BENEFIT.
Section 8(a) of the Food Stamp Act of 1977 (7 U.S.C. 2017(a)) is
amended by striking ``$10 per month'' and inserting ``10 percent of the
thrifty food plan for a household containing 1 member, as determined by
the Secretary under section 3(o)''.
SEC. 4014. STATE OPTION FOR TELEPHONIC SIGNATURE.
Section 11(e)(2)(C) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(2)(C)) is amended--
(1) by inserting ``(i)'' after ``(C)''; and
(2) by adding at the end the following:
``(ii) A State agency may establish a system by
which an applicant household may sign an application
through a recorded verbal assent over the telephone.
Any such system shall--
``(I) record for future reference the
household member's verbal assent and the
information to which assent was given;
``(II) include effective safeguards against
impersonation, identity theft, or invasions of
privacy;
``(III) not deny or interfere with the
right of the household to apply in writing;
``(IV) promptly send the household member a
written copy of the application, with
instructions on 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 Secure
Supplemental Nutrition Assistance Program, with
the date on which the household member provides
verbal assent effective as the date of
application for all purposes; and
``(VII) comply with such other standards as
the Secretary may establish.''.
SEC. 4015. REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN.
(a) Prohibition.--Section 11(e)(6) of the Food Stamp Act of 1977 (7
U.S.C. 2020(e)(6)) is amended--
(1) in subparagraph (A) by striking ``and'' at the end;
(2) by striking subparagraph (B) and inserting the
following:
``(B) except as provided in section 5(h)(4), only
State employees employed in accordance with the current
standards for a Merit System of Personnel
Administration, or any standards later prescribed by
the Office of Personnel Management pursuant to section
208 of the Intergovernmental Personnel Act of 1970 (42
U.S.C. 4728) modifying or superseding such standards
relating to the establishment and maintenance of
personnel standards on a merit basis, shall undertake
such certifications and shall--
``(i) represent the State agency in any
official communications with a prospective
applicant, applicant, or recipient household
regarding their application or participation,
except that a nonprofit organization may assist
a household under paragraph (1) through
activities allowable under section 16(a)(4);
``(ii) participate in making any
determinations relating to a household's
substantive or procedural compliance with the
requirements of this Act or implementing
regulations, including the adequacy of the
household's application or of verification or
other information the household has submitted
in support of that application; or
``(iii) participate in making any other
determinations required under this subsection;
except that nothing in this subparagraph shall prevent
a State agency from contracting for automated systems,
issuance services or program information activities
reimbursed under paragraph (2), (3), (4), or (6) of
section 16(a) or under section 16(g) or for assisting
in the verification of an applicant's identity; and
``(C) the State agency shall not use any Federal
funds--
``(i) to implement, to perform, or to carry
out any contract that does not comply with the
requirements in effect under subparagraph (B);
or
``(ii) to pay any cost associated with the
termination, breach, or full or partial
abrogation, of any contract that does not
comply with the requirements in effect under
such subparagraph;''.
(b) Waivers.--Section 17(b)(1)(B)(iv)(III)(ff) of the Food Stamp
Act of 1977 (7 U.S.C. 2026(b)(1)(B)(iv)(III)(ff)) is amended by
inserting ``or 11(e)(6)(B)'' before the semicolon at the end.
(c) Projects.--Section 26(f)(3)(E) of the Food Stamp Act of 1977 (7
U.S.C. 2035(f)(3)(E)) is amended by inserting ``(6)(B),'' after
``paragraphs''.
(d) Disasters.--Section 5(h) of the Food Stamp Act of 1977 (7
U.S.C. 2014(h)) is amended by inserting at the end:
``(4) The Secretary may authorize a state agency, on a
temporary basis, to use employees or individuals that do not
meet the standards prescribed under section 11(e)(6)(B) in
order to determine eligibility for a disaster food stamp
program under this subsection.''.
(e) Disallowance of Funds.--No funds shall be available under any
appropriations act for implementing or continuing any contract that
does not comply with section 11(e)(6)(B) of the Food Stamp Act of 1977
(7 U.S.C. 2020(e)(6)(B)) as amended by subsection (a) nor for any costs
associated with the termination or full or partial abrogation of such
contract.
(f) Transition Period.--Subsection (e) shall not apply to the costs
of implementing, continuing, or renegotiating any contract concluded
before January 1, 2007, (but shall apply to any costs associated with
the termination or full or partial abrogation of such contract) until
the first day of the first month beginning at least 120 days after the
date of enactment of this Act.
SEC. 4016. GRANTS FOR SIMPLE APPLICATION AND ELIGIBILITY DETERMINATION
SYSTEMS AND IMPROVED ACCESS TO BENEFITS.
Section 11(t)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2020(t)(1)) is amended by striking ``2007'' and inserting ``2012''.
SEC. 4017. CIVIL MONEY PENALTIES AND DISQUALIFICATION OF RETAIL FOOD
STORES AND WHOLESALE FOOD CONCERNS.
Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021) is
amended--
(1) by striking the section heading and all that follows
through ``(a) Any approved'', and inserting the following:
``SEC. 12. CIVIL MONEY PENALTIES AND DISQUALIFICATION OF RETAIL FOOD
STORES AND WHOLESALE FOOD CONCERNS.
``(a) Disqualification.--
``(1) In general.--An approved'';
(2) in subsection (a)--
(A) in the 1st sentence by striking ``$10,000 for
each violation'' and all that follows through the
period at the end, and inserting ``$100,000 for each
violation.''; and
(B) in the 2d sentence--
(i) by striking ``Regulations'' and
inserting the following:
``(2) Regulations.--Regulations'';
(ii) by striking ``finding of a violation
and the'' and inserting ``finding of a
violation,'';
(iii) by inserting a comma after
``disqualification of''; and
(iv) by striking ``a retail store'' and
inserting ``and the assessment of a civil money
penalty against, a retail store'';
(3) in subsection (b)--
(A) by striking ``(b) Disqualification'' and all
that follows through ``shall be--'', and inserting the
following:
``(b) Period of Disqualification.--Subject to subsection (c), a
disqualification shall be--'';
(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)--
(i) in subparagraph (B)--
(I) by striking ``coupons or
trafficking in coupons or authorization
cards'' each place it appears, and
inserting ``program access devices or
benefit instruments or trafficking in
program access devices or benefit
instruments''; and
(II) by inserting ``or a finding of
the unauthorized redemption, use,
transfer, acquisition, alteration, or
possession of benefits or access
devices'' after ``concern'' the 1st
place it appears;
(4) in paragraph (3)(C) by striking ``and'' at the end;
(5) in subsection (c)--
(A) by striking ``(c) The action'' and inserting
the following:
``(c) Treatment of Disqualification and Penalty Determinations.--
The action''; and
(B) by striking ``coupons'' and inserting
``benefits'';
(6) in subsection (d) by striking ``coupons'' in each place
it appears and inserting ``benefits'';
(7) in subsection (f) by striking ``food coupons'' and
inserting ``benefits'';
(8) by redesignating subsections (c) through (g) as
subsections (d) through (h), respectively;
(9) inserting after subsection (b) the following:
``(c) In addition to a disqualification under subsection (b), the
Secretary may assess a civil monetary penalty of up to $100,000;''; and
(10) by adding at the end:
``(i) The Secretary shall, in consultation with the Inspector
General of the Department of Agriculture, provide for procedures by
which the processing of benefit redemptions for certain retail food
stores and wholesale food concerns may be immediately suspended pending
administrative action to disqualify such a store or concern. Under the
procedures prescribed pursuant to this subsection, 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 or the regulations issued pursuant to this Act, unsettled
benefits that have been redeemed by the retail food store or wholesale
food concern may be suspended and, if the suspension is upheld, subject
to forfeiture pursuant to section 12(g). If the disqualification action
is not upheld, suspended funds held by the Secretary shall be released
to such store or such concern. The Secretary shall not be liable for
the value of any interest on funds suspended under this subsection.''.
SEC. 4018. MAJOR SYSTEMS FAILURES.
Section 13(b) of the Food Stamp Act of 1977 (7 U.S.C. 2022(b)) is
amended by adding at the end the following:
``(5) Over issuances caused by systemic state errors.--
``(A) In general.--If the Secretary determines that
a State agency over issued benefits to a substantial
number of households in a fiscal year as a result of a
major systemic error by the State agency, as determined
by the Secretary, the Secretary may prohibit the State
agency from collecting these over issuances from some
or all households.
``(B) Procedures.--
``(i) Information reporting by states.--
Every State agency shall provide to the
Secretary all information requested by the
Secretary concerning the issuance of benefits
to households by the State agency in the
applicable fiscal year.
``(ii) Final determination.--After
reviewing relevant information provided by a
State agency, the Secretary shall make a final
determination--
``(I) whether the State agency over
issued benefits to a substantial number
of households as a result of a systemic
error in the applicable fiscal year;
and
``(II) as to the amount of the over
issuance in the applicable fiscal year
for which the State agency is liable.
``(iii) Establishing a claim.--Upon
determining under clause (ii) that a State
agency has over issued benefits to households
due to a major systemic error determined under
subparagraph (A), the Secretary shall establish
a claim against the State agency equal to the
value of the over issuance caused by the
systemic error.
``(iv) Administrative and judicial
review.--Administrative and judicial review, as
provided in section 14, shall apply to the
final determinations by the Secretary under
clause (ii).
``(v) Remission to the secretary.--
``(I) Determination not appealed.--
If the determination of the Secretary
under clause (ii) is not appealed, the
State agency shall, as soon as
practicable, remit to the Secretary the
dollar amount specified in the claim
under clause (iii).
``(II) Determination appealed.--If
the determination of the Secretary
under clause (ii) is appealed, upon
completion of administrative and
judicial review under clause (iv), and
a finding of liability on the part of
the State, the appealing State agency
shall, as soon as practicable, remit to
the Secretary a dollar amount subject
to the finding of the administrative
and judicial review.
``(vi) Alternative method of collection.--
``(I) In general.--If a State
agency fails to make a payment under
clause (v) within a reasonable period
of time, as determined by the
Secretary, the Secretary may reduce any
amount due to the State agency under
any other provision of this Act by the
amount due.
``(II) Accrual of interest.--During
the period of time determined by the
Secretary to be reasonable under
subclause (I), interest in the amount
owed shall not accrue.
``(vii) Limitation.--Any liability amount
established under section 16(c)(1)(C) shall be
reduced by the amount of the claim established
under this subparagraph.''.
SEC. 4019. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.
Section 16(h)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2025(h)(1)) is amended--
(1) in subparagraph (A)(vii) by striking ``fiscal years
2002 through 2007'' and inserting ``fiscal years 2008 through
2012''; and
(2) in subparagraph (E)(i) by striking ``fiscal years 2002
through 2007'' and inserting ``fiscal years 2008 through
2012''.
SEC. 4020. REDUCTIONS IN PAYMENTS FOR ADMINISTRATIVE COSTS.
Section 16(k)(3) of the Food Stamp Act of 1977 (7 U.S.C.
2025(k)(3)) is amended--
(1) in subparagraph (A) by striking ``2007'' and inserting
``2012''; and
(2) in subparagraph (B)(ii) by striking ``2007'' and
inserting ``2012''.
SEC. 4021. CASH PAYMENT PILOT PROJECTS.
Section 17(b)(1)(B)(vi) of the Food Stamp Act of 1977 (7 U.S.C.
2026(b)(1)(B)(vi)) is amended by striking ``2007'' and inserting
``2012''.
SEC. 4022. FINDINGS OF CONGRESS REGARDING SECURE SUPPLEMENTAL NUTRITION
ASSISTANCE PROGRAM NUTRITION EDUCATION.
(a) Findings.--The Congress finds the following:
(1) Nutrition education under the Food Stamp Act of 1977
plays an essential role in improving the dietary and physical
activity practices of low-income Americans, helping to reduce
food insecurity, prevent obesity, and reduce the risks of
chronic disease.
(2) Expert bodies, such as the Institute of Medicine,
indicate that dietary and physical activity behavior change is
more likely to result from the combined application of public
health approaches and education than from individual education
alone.
(3) State programs are currently implementing such
nutrition education using effective strategies, including
direct education, group activities, and social marketing.
(b) Support Nutrition Education.--The Secretary of Agriculture
should support and encourage the most effective interventions for
nutrition education under the Food Stamp Act of 1977, including public
health approaches as well as traditional education, to increase the
likelihood that recipients of Secure Supplemental Nutrition Assistance
benefits and those who are potentially eligible for such benefits will
choose diets and physical activity practices consistent with the
Dietary Guidelines for Americans. To promote the most effective
implementation of publicly funded programs, State nutrition education
activities under the Food Stamp Act of 1977 should be coordinated with
other federally funded food assistance and public health programs and
should leverage public/private partnerships to maximize resources and
impact.
SEC. 4023. NUTRITION EDUCATION AND PROMOTION INITIATIVE TO ADDRESS
OBESITY.
Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is amended
by adding at the end the following:
``(k) Nutrition Education and Promotion Initiative to Address
Obesity.--
``(1) In general.--The Secretary shall establish a
demonstration program, to be known as the `Initiative to
Address Obesity Among Low-Income Americans' (referred to in
this subsection as the `Initiative'), to develop and implement
solutions to reduce obesity in the United States.
``(A) Selection.--The Secretary shall solicit and
competitively select demonstration proposals for
strategies to address obesity among low-income
Americans.
``(B) Evaluation.--The effectiveness of these
strategies shall be rigorously evaluated to assess the
impact on overweight and obesity among low-income
persons and particularly children, as well as the
feasibility of replicating these programs in other
locations.
``(C) Dissemination.--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.
``(2) Grants.--
``(A) In general.--In carrying out the Initiative,
the Secretary may enter into competitively awarded
contracts or cooperative agreements with, or 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 the Initiative.
``(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.--Demonstration proposals
shall be evaluated against publicly disseminated
criteria that 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 demonstration
plan 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.--
``(i) Prohibition.--Funds shall not be used
for projects that limit the use of benefits.
``(ii) Monitoring and evaluation.--The
Secretary may use funds provided for the
Initiative to pay costs associated with
monitoring, evaluation, and dissemination of
the Initiative's findings.
``(3) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $10,000,000 for
each of the fiscal years 2008 through 2012, except that no new
grants may be made under this subsection after September 30,
2012.''.
SEC. 4024. AUTHORIZATION OF APPROPRIATIONS.
Section 18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2027(a)(1)) is amended by striking ``2003 through 2007'' and inserting
``2008 through 2012''.
SEC. 4025. CONSOLIDATED BLOCK GRANTS FOR PUERTO RICO AND AMERICAN
SAMOA.
Section 19(a)(2)(A)(ii) of the Food Stamp Act of 1977 (7 U.S.C.
2028(a)(2)(A)(ii)) is amended in subparagraph (A)(ii) by striking
``2007'' and inserting ``2012''.
SEC. 4026. STUDY ON COMPARABLE ACCESS TO SECURE SUPPLEMENTAL NUTRITION
ASSISTANCE PROGRAM BENEFITS FOR PUERTO RICO.
Section 19 of the Food Stamp Act of 1977 (7 U.S.C. 2028) is amended
by adding at the end the following:
``(e) Study.--The Secretary shall conduct a study of the
feasibility and effects of including the Commonwealth of Puerto Rico
under section 3(m), in lieu of providing the block grant under this
section. The study shall include--
``(1) an assessment of the administrative, financial
management, and other changes that would be required by the
Commonwealth to establish a comparable Secure Supplemental
Nutrition Assistance Program;
``(2) a discussion of the appropriate program rules under
the other sections of the Act, such as benefit levels under
section 3(o), income eligibility standards under sections 5 and
6, and deduction levels under section 5(e), for the
Commonwealth to establish a comparable Secure Supplemental
Nutrition Assistance Program;
``(3) an estimate of the impact on Federal and Commonwealth
benefit and administrative costs;
``(4) an estimate of the impact of the Secure Supplemental
Nutrition Assistance Program on hunger and food insecurity
among low-income Puerto Ricans, and
``(5) such other findings as the Secretary deems
appropriate.''.
SEC. 4027. REAUTHORIZATION OF COMMUNITY FOOD PROJECT COMPETITIVE
GRANTS.
(a) Authorization of Appropriations.--Section 25 of the Food Stamp
Act of 1977 (U.S.C. 2034) is amended--
(1) in subsections (c), (d), (e)(1), and (f)(1) by striking
``subsection (b)'' each place it appears and inserting
``subsection (g)'';
(2) by striking subsection (b);
(3) by redesignating subsections (c) through (g) as
subsections (b) through (f), respectively; and
(4) by inserting after subsection (f) the following:
``(g) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to make grants available to assist
eligible private nonprofit entities to establish and carry out
community food projects $30,000,000 for each of the fiscal years 2008
through 2012.''.
(b) Preferences for Certain Projects.--Subsection (c) of section 25
of the Food Stamp Act of 1977 (7 U.S.C. 2034), as so redesignated by
subsection (a) of this section, is amended--
(1) in paragraph (3) by striking ``or'' at the end;
(2) in paragraph (4) by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(5) serve special needs in areas of--
``(A) transportation and processing for expanding
institutional and emergency food service demand for
local food;
``(B) retail access to healthy foods in underserved
markets;
``(C) integration of urban and metro-area food
production in food projects; and
``(D) technical assistance for youth, socially
disadvantaged individuals, and limited resource
groups.''.
(c) Matching Fund Requirements.--Subsection (d)(1) of section 25 of
the Food Stamp Act of 1977 (7 U.S.C. 2034), as so redesignated by
subsection (a) of this section, is amended by striking ``50'' and
inserting ``75''.
(d) Term of Grant.--Subsection (e)(2) of section 25 of the Food
Stamp Act of 1977 (7 U.S.C. 2034(e)(2)), as so redesignated by
subsection (a) of this section, is amended by striking ``3'' and
inserting ``5''.
(e) Funding for Innovative Programs.--Subsection (h)(4) of section
25 of the Food Stamp Act of 1977 (7 U.S.C. 2034), as so redesignated by
subsection (a) of this section, is amended--
(1) by striking ``fiscal years 2003 though 2007'' and
inserting ``fiscal years 2008 through 2012''; and
(2) by striking ``200,000'' and inserting ``$500,000''.
SEC. 4028. EMERGENCY FOOD ASSISTANCE PROGRAM.
Section 27(a) of the Food Stamp Act of 1977 (7 U.S.C. 2036(a)) is
amended by--
(1) by striking ``(a) Purchase of Commodities'' and all
that follows through 2007' and inserting the following:
``(a) Purchase of Commodities.--
``(1) In general.--As provided in paragraph (2), for each
of the fiscal years 2008 through 2012'';
(2) by striking ``$140,000,000 of''; and
(3) by adding at the end the following:
``(2) Amounts.--The following amounts are made available to
carry out this subsection:
``(A) for fiscal year 2008, $250,000,000; and
``(B) for each of the fiscal years 2009 through
2012, the dollar amount of commodities specified in
subparagraph (A) adjusted by the percentage by which
the thrifty food plan has been adjusted under section
3(o)(4) between June 30, 2007 and June 30 of the
immediately preceding fiscal year.''.
Subtitle B--Commodity Distribution
SEC. 4201. AUTHORIZATION OF APPROPRIATIONS.
Section 204(a)(1) of the Emergency Food Assistance Act of 1983 (7
U.S.C. 7508(a)(1)) is amended by striking ``$60,000,000 for each of the
fiscal years 2003 through 2007'' and inserting `` $100,000,000 for each
of the fiscal years 2008 through 2012''.
SEC. 4202. DISTRIBUTION OF SURPLUS COMMODITIES; SPECIAL NUTRITION
PROJECTS.
Section 1114(a)(2)(A) of the Agriculture and Food Act of 1981 (7
U.S.C. 1431e(a)(2)(A)) is amended by striking ``2007'' and inserting
``2012''.
SEC. 4203. COMMODITY DISTRIBUTION PROGRAM.
(a) Commodity Distribution Program.--Section 4 of the Agriculture
and Consumer Protection Act of 1973 (7 U.S.C. 612c note) is amended by
striking ``2007'' and inserting ``2012''.
(b) Commodity Supplemental Food Program.--Section 5 of the
Agriculture and Consumer Protection Act (7 U.S.C. 612c note) is
amended--
(1) in subsection (a)--
(A) in paragraph (1) by striking ``fiscal years
2003 through 2007'' and inserting ``for fiscal year
2008 and each fiscal year thereafter''; and
(B) in paragraph (2)(B)--
(i) in the heading by striking in ``2007''
and inserting ``2012''; and
(ii) by striking ``2007'' and inserting
``2012'';
(2) in subsection (d)(2) by inserting ``, and for each
fiscal year thereafter,'' after ``2007'';
(3) by amending subsection (g) to read as follows:
``(g) Use of Resources.--Each local agency shall use funds made
available to the agency to provide assistance under the program to low-
income elderly individuals, women, infants, and children in need for
food assistance in accordance with such regulations as the Secretary
may prescribe.'';
(4) in paragraphs (2) and (3) of subsection (h) by
inserting ``elderly individuals,'' before ``pregnant''; and
(5) by adding at the end the following:
``(m) Income Eligibility Standards.--The Secretary shall establish
maximum income eligibility standards to be used in conjunction with
such other risk criteria as may be appropriate in determining
eligibility for the program. Such income standards shall be the same
for all pregnant, postpartum, and breastfeeding women, for infants, for
children, and for elderly individuals qualifying for the program, and
shall not exceed the maximum income limit prescribed under section
17(d)(2)(A)(i) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(d)(2)(A)(i)).''.
Subtitle C--Child Nutrition and Related Programs
SEC. 4301. 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 new subsection:
``(b) Purchase of Fresh Fruits and Vegetables for Distribution to
Schools and Service Institutions.--
``(1) Purchase authority.--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)--
``(A) not less than $50,000,000 for each of fiscal
years 2008 and 2009; and
``(B) not less than $75,000,000 for each of fiscal
years 2010 through 2012.
``(2) Servicing agency.--The Secretary of Agriculture may
provide for the Secretary of Defense to serve as the servicing
agency for the procurement of the fresh fruits and vegetables
under this subsection on the same terms and conditions as
provided in the memorandum of agreement entered into between
the Agricultural Marketing Service, the Food and Consumer
Service, and the Defense Personnel Support Center during August
1995 (or any successor memorandum of agreement).''.
SEC. 4302. 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
requires the use of domestic food products for all meals served
under the program, including foods products purchased with
local funds.
(b) Buy American Statutory Requirements.--The Department of
Agriculture should undertake training, guidance, and enforcement of the
various current Buy American statutory requirements and regulations,
including those of the National School Lunch Act and the DOD Fresh
program.
SEC. 4303. EXPANSION OF FRESH FRUIT AND VEGETABLE PROGRAM.
Section 18 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769) is amended in subsection (g)--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by
striking ``July 2004'' and inserting ``July 2007''; and
(B) in paragraph (1) by amending subparagraphs (A)
and (B) to read as follows:
``(A) 35 elementary or secondary schools in each
State;
``(B) additional elementary or secondary schools in
each State in proportion to the student population of
the State; and'';
(2) in paragraph (3)(A)--
(A) in the matter preceding clause (i) by striking
``paragraph (1)(B)'' and inserting ``paragraph (1)'';
(B) in clause (iii) by striking ``and'' at the end;
(C) in clause (iv) by striking the period at the
end and inserting ``; and''; and
(D) by adding at the end the following:
``(v) encourage plans for implementation
that include locally grown foods, where
geographically available, in accordance with
section 9(j).''.
(3) in paragraph (5) in each of subparagraphs (A) and (B),
by striking ``2008'' and inserting ``2012''; and
(4) in paragraph (6)(B)--
(A) in clause (i)--
(i) by striking ``October 1, 2004, and on
each October 1 thereafter,'' and inserting
``October 1, 2007, and on each October 1
thereafter,''; and
(ii) by striking ``$9,000,000'' and
inserting ``$70,000,000''; and
(B) by adding at the end the following:
``(iii) Administrative expenses.--For
fiscal year 2009 and each fiscal year
thereafter, of the amount available to carry
out this subsection, the Secretary may reserve
not more than 1 percent of that amount for
administrative expenses in carrying out this
subsection.
``(iv) State administrative costs.--For
fiscal year 2009 and each fiscal year
thereafter, of the amount received by a State
to carry out this subsection, the State may use
not more than 5 percent of that amount for
administrative expenses in carrying out this
subsection. To be eligible to use such funds
for such expenses, the State must submit to the
Secretary a plan indicating how the State
intends to use such funds.
``(v) Federal requirements.--The Secretary
shall establish requirements to be followed by
States in administering this subsection. The
initial set of requirements shall be
established not later than 1 year after the
date of the enactment of this clause.''.
SEC. 4304. 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 locally produced foods, to the maximum extent
practicable and appropriate;
``(2) advise institutions participating in a program
described in paragraph (1) of the policy described in that
paragraph and post information concerning the policy on the
website maintained by the Secretary; and
``(3) allow institutions receiving funds under this Act and
the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.),
including the Department of Defense Fresh Fruit and Vegetable
Program, to use a geographic preference for the procurement of
locally produced foods.''.
Subtitle D--Miscellaneous
SEC. 4401. 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) by amending subsection (a) to read as follows:
``(a) Authorization.--
``(1) The Secretary of Agriculture shall use $15,000,000
for each of fiscal years 2008 through 2012 of the funds
available to the Commodity Credit Corporation to carry out and
expand the seniors farmers' market nutrition program.
``(2) There are authorized to be appropriated $20,000,000
for fiscal year 2008, $30,000,000 for fiscal year 2009,
$45,000,000 for fiscal year 2010, $60,000,000 for fiscal year
2011, and $75,000,000 for fiscal year 2012 to carry out and
expand the seniors farmers' market nutrition program.'';
(2) in subsection (b)(1) by inserting ``honey,'' after
``vegetables,'';
(3) by amending subsection (c) to read as follows:
``(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
(4) by adding at the end the following:
``(d) Prohibition on Collection of Sales Tax.--The State shall
ensure that no State or local taxes are collected within the State on
purchases of food with coupons distributed under the seniors farmers'
market nutrition program.
``(e) Regulations.--The Secretary may issue such regulations as the
Secretary considers necessary to carry out the seniors farmers' market
nutrition program.''.
SEC. 4402. CONGRESSIONAL HUNGER CENTER.
Section 4404 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 1621 note) 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 2007'.
``(b) Findings.--The Congress finds as follows:
``(1) There is a critical need for compassionate
individuals who are committed to assisting people who suffer
from hunger to initiate and administer solutions to the hunger
problem.
``(2) Bill Emerson, the distinguished late Representative
from the 8th District of Missouri, demonstrated his commitment
to solving the problem of hunger in a bipartisan manner, his
commitment to public service, and his great affection for the
institution and ideals of the Congress of the United States.
``(3) George T. (Mickey) Leland, the distinguished late
Representative from the 18th District of Texas, demonstrated
his compassion for those in need, his high regard for public
service, and his lively exercise of political talents.
``(4) The special concern that Mr. Emerson and Mr. Leland
demonstrated during their lives for the hungry and poor was an
inspiration for others to work toward the goals of equality and
justice for all.
``(5) These two outstanding leaders maintained a special
bond of friendship regardless of political affiliation and
worked together to encourage future leaders to recognize and
provide service to others, and therefore it is especially
appropriate to honor the memory of Mr. Emerson and Mr. Leland
by creating a fellowship program to develop and train the
future leaders of the United States to pursue careers in
humanitarian service.
``(c) Definitions.--In this section:
``(1) Administrator.--The term `Administrator' means--
``(A) if the Secretary of Agriculture enters into a
contract described in subsection (d)(3), the head of
the Congressional Hunger Center; or
``(B) if the Secretary does not enter into such a
contract, the Secretary.
``(2) Fellow.--The term `fellow' means--
``(A) a Bill Emerson Hunger Fellow; or
``(B) a 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 by subsection (d).
``(d) Fellowship Program.--There is established in the Department
of Agriculture the Bill Emerson National Hunger Fellowship Program and
the Mickey Leland International Hunger Fellowship Program.
``(1) Purposes.--The purposes of the Fellowship Programs
are--
``(A) to encourage future leaders of the United
States to pursue careers in humanitarian and public
service, to recognize the needs of low-income people
and hungry people, and to provide assistance to people
in need; and
``(B) to seek public policy solutions to the
challenges of hunger and poverty, to provide training
and development opportunities for such leaders through
placement in programs operated by appropriate
organizations or entities.
``(2) Focus of programs.--
``(A) Focus of bill emerson hunger fellowship
program.--The Bill Emerson Hunger Fellowship Program
shall address hunger and poverty in the United States.
``(B) Focus of mickey leland hunger fellowship
program.--The Mickey Leland Hunger Fellowship Program
shall address international hunger and other
humanitarian needs.
``(3) Administration.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall offer to enter into a contract with the
Congressional Hunger Center to administer the
Fellowship Programs.
``(B) Requirement.--As a condition of a contract
described in subparagraph (A), the Congressional Hunger
Center shall agree to submit to Congress each year the
results of an independent financial audit that
demonstrates that the Congressional Hunger Center uses
accounting procedures that conform to generally
accepted accounting principles and auditing procedures
that conform to chapter 75 of title 31, United States
Code (commonly known as the `Single Audit Act of
1984').
``(e) Fellowships.--
``(1) In general.--The Administrator shall make available
Bill Emerson Hunger Fellowships and Mickey Leland Hunger
Fellowships in accordance with this subsection.
``(2) Curriculum.--
``(A) In general.--The fellowship programs shall
provide experience and training to develop the skills
necessary to train fellows to carry out the purposes
described in subsection (d)(1), 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 Administrator 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) Emerson fellow.--A Bill Emerson Hunger
Fellowship awarded under this subsection shall be for
not more than 15 months.
``(B) Leland fellow.--A Mickey Leland Hunger
Fellowship awarded under this subsection 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
Administrator.
``(B) Qualifications.--A successful program
applicant shall be an individual who has demonstrated--
``(i) an intent to pursue a career in
humanitarian service 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
Administrator.
``(5) Amount of award.--
``(A) In general.--A fellow shall receive a living
allowance during the term of the Fellowship and,
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 Administrator.
``(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) Evaluation.--The Administrator shall conduct periodic
evaluations of the Fellowship Programs.
``(f) Authority.--
``(1) In general.--Subject to paragraph (2), in carrying
out this section, the Administrator may solicit, accept, use,
and dispose of gifts, bequests, or devises of services or
property, both real and personal, for the purpose of
facilitating the work of the Fellowship Programs.
``(2) Limitation.--Gifts, bequests, or devises of money and
proceeds from sales of other property received as gifts,
bequests, or devises shall be used exclusively for the purposes
of the Fellowship Programs.
``(g) Report.--Each year, the Administrator 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 activities and expenditures of the Fellowship
Programs during the preceding fiscal year.
``(h) Funding.--There is authorized to be appropriated to the
Secretary to carry out this section $3,000,000 for each of the fiscal
years 2008 through 2012.''.
SEC. 4403. JOINT NUTRITION MONITORING AND RELATED RESEARCH ACTIVITIES.
Subtitle D of title IV of the Farm Security and Rural Investment
Act of 2002 (Public Law 107-171; 116 Stat. 333) is amended--
(1) by redesignating section 4405 (2 U.S.C. 1161 note;
Public Law 107-171) as section 4406; and
(2) by inserting after section 4404 the following:
``SEC. 4405. JOINT NUTRITION MONITORING AND RELATED RESEARCH
ACTIVITIES.
``The Secretary of Agriculture 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 section--
``(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 SENSE OF THE CONGRESS.
It is the sense of the Congress that food items provided pursuant
to the Federal school breakfast and school lunch program should be
selected so as to reduce the incidence of juvenile obesity and to
maximize nutritional value.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
Sec. 5001. Conservation loan guarantee program.
Sec. 5002. Limitations on amount of ownership loans.
Sec. 5003. Down payment loan program.
Sec. 5004. Beginning farmer and rancher contract land sales program.
Sec. 5005. Loans to purchasers of highly fractioned lands.
Subtitle B--Operating Loans
Sec. 5011. Limitations on amount of operating loans.
Sec. 5012. Suspension of limitation on period for which borrowers are
eligible for guaranteed assistance.
Subtitle C--Administrative Provisions
Sec. 5021. Inventory sales preferences.
Sec. 5022. Loan fund set-asides.
Sec. 5023. Transition to private commercial or other sources of credit.
Sec. 5024. Extension of the right of first refusal to reacquire
homestead property to immediate family
members of borrower-owner.
Sec. 5025. Rural development and farm loan program activities.
Subtitle D--Farm Credit
Sec. 5031. Bank for cooperatives voting stock.
Sec. 5032. Rural utility loans.
Sec. 5033. Farm Credit System Insurance Corporation.
Sec. 5034. Risk-based capital levels.
Subtitle A--Farm Ownership Loans
SEC. 5001. CONSERVATION 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 GUARANTEE PROGRAM.
``(a) In General.--The Secretary may provide a loan guarantee, an
interest subsidy, or both, to enable an eligible borrower to obtain a
qualified conservation loan.
``(b) Priority.--In providing loan guarantees under this section,
the Secretary shall give priority to--
``(1) qualified beginning farmers or ranchers;
``(2) socially disadvantaged farmers or ranchers (as
defined in section 355(e)(2));
``(3) owners or tenants who use the loans to covert to
sustainable or organic agricultural production systems; and
``(4) 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.
``(c) Definitions.--In this section:
``(1) Eligible borrower.--The term `eligible borrower'
means a farmer, rancher, farm cooperative, private domestic
corporation, partnership, joint operation, trust, or limited
liability company, that is engaged primarily and directly in
agricultural production in the United States.
``(2) Qualified conservation loan.--The term `qualified
conservation loan' means a loan that meets the following
requirements:
``(A) Purpose.--The loan proceeds are required to
be used to cover the costs to the borrower of carrying
out a qualified conservation project.
``(B) Principal amount.--The principal amount of
the loan is not more than $1,000,000,000.
``(C) Repayment period.--The loan repayment period
shall not exceed 10 years.
``(D) Limited processing fee.--The total of all
processing fees charged with respect to the loan does
not exceed such amount as shall be prescribed by the
Secretary.
``(3) Qualified conservation project.--The term `qualified
conservation project' means, with respect to an eligible
borrower, conservation measures that address provisions of a
conservation plan of the borrower.
``(4) 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 guaranteed loan funds provided under
this section, including--
``(A) the installation of conservation structures;
``(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;
``(G) other purposes consistent with the plan; and
``(H) any other emerging or existing conservation
practices, techniques, or technologies approved by the
Secretary.
``(d) Limitations Applicable to Loan Guarantees.--
``(1) Limitation on amount of guarantee.--The portion of a
loan that the Secretary may guarantee under this section shall
be not less than 80 percent and not more than 90 percent of the
principal amount of the loan.
``(2) Limitation on total amount outstanding.--The
aggregate principal amount of outstanding loans guaranteed by
the Secretary under this section shall not exceed $1,000,000.
``(e) Limitation on Amount of Interest Subsidy.--The interest
subsidy which the Secretary may provide under this section with respect
to a loan shall result in a reduction of the interest rate agreed upon
by the borrower and the lender (but to not less than zero) by--
``(1) 500 basis points, if the principal amount of the loan
is less than $100,000;
``(2) 400 basis points, if the principal amount of the loan
is not less than $100,000 and is less than $500,000; and
``(3) 300 basis points, in any other case.
``(f) Administrative Provisions.--
``(1) Authority to collect processing fee.--The Secretary
may assess a fee to cover the cost of processing an application
under this section equal to not more than 1 percent of the
principal amount of the loan sought by the applicant, as
described in the application.
``(2) Approval of application.--The Secretary shall not
approve an application submitted pursuant to this section,
unless the Secretary has determined that--
``(A) the loan sought by the applicant, as
described in the application, would be a qualified
conservation loan; and
``(B) the project for which the loan is sought is
likely to result in a net benefit to the environment.
``(3) Equitable distribution of loan guarantees and
interest subsidies.--The Secretary shall ensure that loan
guarantees and interest subsidies under this section are
equitably distributed among agricultural producers according to
the scale of the operations.
``(g) Relationship With Other Conservation Programs.--Neither the
application for, nor the receipt of, a loan guarantee or an interest
subsidy under this section shall affect the eligibility of the
recipient for assistance under title XII of the Food Security Act of
1985 or the Watershed Protection and Flood Prevention Act.
``(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. 5002. LIMITATIONS ON AMOUNT OF OWNERSHIP LOANS.
Section 305 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1925) is amended--
(1) in subsection (a)(2), by striking ``$200,000'' and
inserting ``$300,000''; and
(2) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively, and inserting after subsection (a)
the following:
``(b) Graduation Plan.--The Secretary shall establish a plan, in
coordination with activities under sections 359, 360, 361, and 362, to
encourage each borrower with an outstanding loan under this subtitle to
graduate to private commercial or other sources of credit.''.
SEC. 5003. 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 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''; and
(4) in subsection (d)--
(A) in paragraph (3)--
(i) by inserting ``and socially
disadvantaged farmers and ranchers (as defined
in section 355(e)(2))'' after ``ranchers''; and
(ii) by striking ``and'' at the end;
(B) in paragraph (4), by striking ``ranchers.'' and
inserting ``ranchers and socially disadvantaged farmers
and ranchers (as defined in section 355(e)(2)); and'';
and
(C) by adding at the end the following:
``(5) establish annual performance goals to promote the use
of the down payment loan program and other joint financing
participation loans as the preferred choice for direct real
estate loans made by any lender to a qualified beginning farmer
or rancher or socially disadvantaged farmer or rancher (as so
defined).''.
SEC. 5004. BEGINNING FARMER AND 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 AND RANCHER AND SOCIALLY DISADVANTAGED
FARMER AND 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 or 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;
``(2) the loan shall meet applicable underwriting criteria,
as determined by the Secretary; and
``(3) to carry out the loan--
``(A) a commercial lending institution shall agree
to serve as an escrow agent; or
``(B) the private seller, in cooperation with the
farmer or rancher, shall use an appropriate alternate
arrangement, 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.--A private seller of a farm or ranch who
makes a loan that is guaranteed by the Secretary under subsection (a)
may select--
``(1) a prompt payment guarantee plan, which shall cover--
``(A) 3 amortized annual installments; or
``(B) 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
``(2) a standard guarantee plan, which shall cover an
amount equal to 90 percent of the outstanding principal of the
loan.''.
SEC. 5005. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LANDS.
Section 1 of Public Law 91-229 (25 U.S.C. 488) is amended by adding
at the end the following: ``The Secretary of Agriculture may make and
insure loans as provided in section 309 of the Consolidated Farm and
Rural Development Act to eligible purchasers of highly fractionated
land pursuant to section 204(c) of the Indian Land Consolidation Act.
Section 4 of this Act shall not apply to trust or restricted tribal or
tribal corporation property mortgaged pursuant to the preceding
sentence.''.
Subtitle B--Operating Loans
SEC. 5011. 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. 5012. 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 ``January 1, 2008''.
Subtitle C--Administrative Provisions
SEC. 5021. 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) by redesignating clauses (ii) through
(iv) as clauses (iii) through (v),
respectively;
(iv) by inserting after clause (i) the
following:
``(ii) Priority to be given to socially
disadvantaged farmers and ranchers.--In
carrying out this subparagraph, the Secretary
shall give priority to socially disadvantaged
farmers and ranchers.'';
(v) in clause (iii) (as so redesignated)--
(I) by inserting ``or socially
disadvantaged farmer or rancher'' after
``or rancher''; and
(II) by inserting ``, subject to
clause (ii)'' before the period;
(vi) in clause (iv) (as so redesignated),
by inserting ``or a socially disadvantaged
farmer or rancher'' after ``or rancher''; and
(vii) in clause (v) (as so redesignated),
by inserting ``and socially disadvantaged
farmers and ranchers'' after ``and ranchers'';
and
(B) in subparagraph (C), by inserting ``or a
socially disadvantaged farmer or rancher'' after ``or
rancher'';
(2) in paragraph (5)(B)--
(A) in clause (i)--
(i) in the clause heading, by inserting ``;
socially disadvantaged farmer or rancher''
after ``or rancher'';
(ii) by inserting ``or a socially
disadvantaged farmer or rancher'' after ``a
beginning farmer or rancher''; and
(iii) by inserting ``or the socially
disadvantaged farmer or rancher'' after ``the
beginning farmer or rancher'';
(B) by redesignating clauses (ii) and (iii) as
clauses (iii) and (iv), respectively;
(C) by inserting after clause (i) the following:
``(ii) Priority to be given to socially
disadvantaged farmers and ranchers.--In
carrying out clause (i), the Secretary shall
give priority to socially disadvantaged farmers
and ranchers.''; and
(D) in clause (iii) (as so redesignated)--
(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'';
(3) in paragraph (6)--
(A) in subparagraph (A), by inserting ``or a
socially disadvantaged farmer or rancher'' after ``or
rancher''; and
(B) in subparagraph (C)--
(i) in clause (i)(I), by inserting ``and
socially disadvantaged farmers and ranchers''
after ``and ranchers''; and
(ii) in clause (ii), by inserting ``or
socially disadvantaged farmers or ranchers''
after ``or ranchers''; and
(4) by adding at the end the following:
``(7) In this subsection, the term `socially disadvantaged
farmer or rancher' has the meaning given in section
355(e)(2).''.
SEC. 5022. LOAN FUND SET-ASIDES.
Section 346(b)(2) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1994(b)(2)) is amended--
(1) in subparagraph (A)--
(A) in clause (i)--
(i) in subclause (I), by striking ``70
percent'' and inserting ``not less than 75
percent of the total amount made available
under paragraph (1)''; and
(ii) in subclause (II)--
(I) in the subclause heading, by
inserting ``; participation loans''
after ``payment loans'';
(II) by striking ``60 percent'' and
inserting ``not less than \2/3\ of the
amount reserved under subclause (I)'';
and
(III) by inserting ``and
participation loans'' after ``section
310E''; and
(B) in clause (ii)(III), by striking ``2003 through
2007, 35 percent'' and inserting ``2008 through 2012,
not less than 50 percent of the total amount made
available under paragraph (1)''; and
(2) in subparagraph (B)(i), by striking ``25 percent'' and
inserting ``not less than 40 percent of the total amount made
available under paragraph (1)''.
SEC. 5023. 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 practicable period of time.
``(b) Coordination.--In carrying out this section, the Secretary
shall integrate and coordinate the transition policy described in
subsection (a) with--
``(1) the borrower training program established by section
359;
``(2) the loan assessment process established by section
360;
``(3) the supervised credit requirement established by
section 361;
``(4) the market placement program established by section
362; and
``(5) other appropriate programs and authorities, as
determined by the Secretary.''.
SEC. 5024. 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. 5025. 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 D--Farm Credit
SEC. 5031. 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. 5032. RURAL UTILITY LOANS.
Section 8.0(9) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa(9))
is amended--
(1) by striking ``or'' at the end of subparagraph (A)(iii);
(2) by striking the period at the end of subparagraph (B)
and inserting ``; or''; and
(3) by adding at the end the following:
``(C) that is a loan or interest in a loan for
electric or telephone facilities by a cooperative
lender to a borrower who has received or is eligible to
receive a loan under the Rural Electrification Act (7
U.S.C. 901 et seq.), except that--
``(i) subsections (c) and (d) of section
8.6, and sections 8.8 and 8.9 shall not apply
to the loan or interest in the loan or to an
obligation backed by a pool of obligations
relating to the loan or interest in the loan;
and
``(ii) the loan or interest in the loan
shall be considered to meet all standards for
qualified loans for all purposes under this
Act, subject to reasonable underwriting,
security appraisal, and repayment standards
established by the Corporation.''.
SEC. 5033. FARM CREDIT SYSTEM INSURANCE CORPORATION.
(a) Authority To Pass Along Cost of Insurance Premiums.--Section
1.12(b) of the Farm Credit Act of 1971 (12 U.S.C. 2020(b)) is amended
by striking the last sentence and inserting ``The assessment on any
such association or other financing institution for any period shall be
computed in an equitable manner.''.
(b) Premiums; Amount in Fund Not Exceeding Secure Base Amount.--
Section 5.55(a) of such Act (12 U.S.C. 2277a-4(a)) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by
striking ``(2), the annual'' and inserting ``(3),
the'';
(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 therefrom the percentages of the guaranteed
portions of loans and investments described in
paragraph (2), multiplied by 0.0020;
``(B) the average principal outstanding for the
calendar year on loans made by the bank that are in
nonaccrual status, multiplied by 0.0010; and
``(C) the average amount outstanding for the
calendar year of other-than-temporarily impaired
investments made by the bank, multiplied by 0.0010.'';
(2) in paragraph (2), by striking ``annual'';
(3) in paragraph (3), in the matter preceding subparagraph
(A), by striking ``As used'' and all that follows through
``that'' and inserting ``As used in this section, the term
`government-guaranteed' when applied to loans or investments,
means loans, credits, or investments, or portions of loans,
credits, or investments, that''; and
(4) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively, and 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
subsection (a)(1)(A) of this section shall be reduced by
deducting therefrom the sum of--
``(A) 90 percent of the sum of--
``(i) the average principal outstanding for
such 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,
as determined by the Corporation; and
``(B) 80 percent of the sum 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, as
determined by the Corporation.''.
(c) Premiums; 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''.
(d) Secure Base Amount.--Section 5.55(c) of such Act (12 U.S.C.
2277a-4(c)) is amended by striking the parenthetical phrase and
inserting ``(adjusted downward to exclude an amount equal to the sum
of: (1) 90 percent of: (A) the guaranteed portions of principal
outstanding on Federal government-guaranteed loans in accrual status
made by the banks; and (B) the guaranteed portions of the amount of
Federal government-guaranteed investments made by the banks that are
not permanently impaired; and (2) 80 percent of: (A) the guaranteed
portions of principal outstanding on State government-guaranteed loans
in accrual status made by the banks; and (B) the guaranteed portions of
the amount of State government-guaranteed investments made by the banks
that are not permanently impaired, as determined by the Corporation)''.
(e) 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'' and all that follows through ``--'' and inserting ``For
the purpose of subsections (a) and (c) of this section, the
principal outstanding on all loans made by an insured System
bank or the amount outstanding on all investments made by an
insured System bank shall be determined based on all loans or
investments made--''; and
(3) in each of paragraphs (1) and (2), by inserting ``or
investments'' before ``because''.
(f) 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) of
this paragraph) as the average principal outstanding
for the calendar year on insured obligations issued by
the bank (after deducting therefrom the percentages of
the guaranteed portions of loans and investments
described in subsection (a)(2) of this section), bears
to the average principal outstanding for the calendar
year on insured obligations issued by all insured
System banks (after deducting therefrom the percentages
of the guaranteed portions of loans and investments so
described).''; and
(3) in paragraph (6)--
(A) in subparagraph (A)--
(i) in the matter preceding clause (i), by
striking ``beginning'' and all that follows
through ``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 its Allocated Insurance
Reserves Account; and''; and
(iii) in clause (ii)--
(I) by striking ``(C), (E), and
(F)'' and inserting ``(C) and (E)'';
and
(II) by striking ``outstanding,''
and all that follows and inserting ``at
the time of the termination of the
Financial Assistance Corporation, of
the balance in the Allocated Insurance
Reserves Account established under
subparagraph (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 $56,000,000, the Corporation
shall close the Account established under
paragraph (1)(B) and 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).
(g) Certification of Premiums.--
(1) Filing certified statement.--Section 5.56(a) of such
Act (12 U.S.C. 2277a-5(a)) is amended to read as follows:
``(a) Filing Certified Statement.--On a date to be determined in
the sole discretion of the Corporation's Board of Directors, each
insured System bank that became insured before the beginning of the
period for which premiums are being assessed (in this section referred
to 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) the average principal outstanding for the period on
the guaranteed portion of Federal government-guaranteed loans
that are in accrual status and 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) the average principal outstanding for the period on
State government-guaranteed loans that are in accrual status
and 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) the average principal outstanding for the period on
loans that are in nonaccrual status and 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.''.
(2) Premium payments.--Section 5.56(c) of such Act (12
U.S.C. 2277a-5(c)) is amended to read as follows:
``(c) Premium Payments.--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 time or times as the Board of Directors shall prescribe, except
that the amount of the premium shall be established not later than 60
days after filing the certified statement setting forth the amount of
the premium.''.
(3) Conforming amendments.--Section 5.56 of such Act (12
U.S.C. 2277a-5) is amended by striking subsection (d) and
redesignating subsection (e) as subsection (d).
(h) 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. 5034. RISK-BASED CAPITAL LEVELS.
Section 8.32(a)(1) of the Farm Credit Act of 1971 (12 U.S.C.
2279bb-1(a)(1)) is amended by striking all through ``a pool of'' and
inserting the following:
``(1) Credit risk.--
``(A) With respect to securities representing an
interest in, or obligations backed by, a pool of
qualified loans (as defined 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,
respectively, as determined by the Director.
``(B) With respect to securities representing an
interest in, or obligations backed by, a pool of
other''.
TITLE VI--RURAL DEVELOPMENT
Sec. 6001. Definition of rural.
Sec. 6002. Water, waste disposal, and wastewater facility grants.
Sec. 6003. Rural business opportunity grants.
Sec. 6004. Rural water and wastewater circuit rider program.
Sec. 6005. Tribal college and university essential community
facilities.
Sec. 6006. Emergency and imminent community water assistance grant
program.
Sec. 6007. Water systems for rural and native villages in Alaska.
Sec. 6008. 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. 6009. Rural cooperative development grants.
Sec. 6010. Criteria to be applied in providing loans and loan
guarantees under the business and industry
loan program.
Sec. 6011. Appropriate technology transfer for rural areas program.
Sec. 6012. Grants to improve technical infrastructure and improve
quality of rural health care facilities.
Sec. 6013. Rural entrepreneur and microenterprise assistance program.
Sec. 6014. Criteria to be applied in considering applications for rural
development projects.
Sec. 6015. National sheep industry improvement center.
Sec. 6016. National rural development partnership.
Sec. 6017. Historic barn preservation.
Sec. 6018. Grants for NOAA weather radio transmitters.
Sec. 6019. Delta regional authority.
Sec. 6020. Northern great plains regional authority.
Sec. 6021. Rural strategic investment program.
Sec. 6022. Expansion of 911 access.
Sec. 6023. Access to broadband telecommunications services in rural
areas.
Sec. 6024. Community connect grant program.
Sec. 6025. Agriculture innovation center demonstration program.
Sec. 6026. Rural firefighters and emergency medical service assistance
program.
Sec. 6027. Value-added agricultural market development program.
Sec. 6028. Assistance for rural public television stations.
Sec. 6029. Telemedicine and distance learning services in rural areas.
Sec. 6030. Guarantees for bonds and notes issued for electrification or
telephone purposes.
Sec. 6031. Comprehensive rural broadband strategy.
Sec. 6032. Study of railroad issues.
SEC. 6001. DEFINITION OF RURAL.
Not later than 60 days after the date of the enactment of this Act,
the Secretary of Agriculture 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 varying definitions of ``rural'' used by
the Department of Agriculture;
(2) describes the effects those varying definitions have on
the programs administered by the Department of Agriculture; and
(3) makes recommendations for ways to better target funds
provided through rural development programs.
SEC. 6002. 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. 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
``2007'' and inserting ``2012''.
SEC. 6004. 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. 6005. 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) 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.''; and
(2) in subparagraph (C), by striking ``2003 through 2007''
and inserting ``2008 through 2012''.
SEC. 6006. 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. 6007. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.
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''.
SEC. 6008. 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.
(a) Authorization of Appropriations.--Section 306E(d) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1926e(d)) is
amended by striking ``2003 through 2007'' and inserting ``2008 through
2012''.
(b) Additional Priority in Awarding Grants.--Section 306E(c) of
such Act (7 U.S.C. 1926e(c)) is amended by inserting ``, and to an
applicant that has substantial expertise and experience in promoting
the safe and productive use of individually-owned household water well
systems and ground water. The ability of an applicant to provide
matching funds shall not be taken into account in determining any
priority in awarding grants under this section. The payment by a
grantee of audit fees, business insurance, salary, wages, employee
benefits, printing costs, postage costs, and legal fees associated with
providing the assistance described in paragraph (1) shall be considered
the provision of matching funds by the grantee for purposes of this
section'' before the period.
SEC. 6009. RURAL COOPERATIVE DEVELOPMENT GRANTS.
(a) Eligibility.--Section 310B(e)(5) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1932(e)(5)) is amended--
(1) in subparagraph (A), by striking ``a nationally
coordinated, regionally or State-wide operated project'' and
inserting ``activities to promote and assist the development of
cooperatively and mutually owned businesses'';
(2) in subparagraph (B), by inserting ``to promote and
assist the development of cooperatively and mutually owned
businesses'' before the semicolon;
(3) by striking subparagraph (D) and redesignating
subparagraph (E) as subparagraph (D);
(4) inserting after subparagraph (D) (as so redesignated):
``(E) demonstrate a commitment to--
``(i) networking with and sharing the
results of its efforts with other cooperative
development centers and other organizations
involved in rural economic development efforts;
and
``(ii) developing multi-organization and
multi-State approaches to addressing the
cooperative and economic development needs of
rural areas.''; and
(5) in subparagraph (F), by striking ``greater than'' the
1st place it appears.
(b) Authority to Award Multi-Year Grants.--Section 310(B)(e)(6) of
such Act (7 U.S.C. 1932(e)(6)) is amended to read as follows:
``(6) Grants awarded to centers that have received no prior
funding under this subsection shall be made for a period of 1
year. The Secretary shall evaluate programs receiving
assistance under this subsection. The Secretary may award
grants for a period of more than 1 year, but not more than 3
years, to centers that have successfully met the criteria under
paragraph (5).''.
(c) Authority to Extend Grant Period for 1 Year.--Section 310B(e)
of such Act (7 U.S.C. 1932(e)) is amended by redesignating paragraphs
(7) through (9) as paragraphs (8) through (10), respectively, and
inserting after paragraph (6) the following:
``(7) The Secretary may extend for only 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 such Act (7
U.S.C. 1932(e)), as amended by subsection (c) of this section, is
amended by redesignating paragraphs (9) and (10) as paragraphs (10) and
(11), respectively, and inserting after paragraph (9) the following:
``(10) The Secretary shall enter into a cooperative
research agreement with 1 or more qualified academic
institutions in each fiscal year to conduct research on the
national economic effects of all types of cooperatives.''.
(e) Addressing Needs of Minority Communities.--Section 310B(e) of
such Act (7 U.S.C. 1932(e)), as amended by subsections (c) and (d) of
this section, is amended by redesignating paragraph (11) as paragraph
(12) and inserting after paragraph (10) the following:
``(11)(A) If the total amount appropriated under paragraph
(12) of this subsection for a fiscal year exceeds $7,500,000,
the Secretary shall reserve an amount equal to 20 percent of
the amount so appropriated for grants for cooperative
development centers, individual cooperatives, or groups of
cooperatives, serving socially disadvantaged (within the
meaning of section 355(e)) communities, a majority of the
boards of directors or governing boards of which are comprised
of socially disadvantaged (withing such meaning) individuals.
``(B) To the extent that the Secretary determines that
funds reserved under subparagraph (A) will not be used for
grants described in subparagraph (A) because of insufficient
applications for the grants, the Secretary shall use the funds
as otherwise authorized by this subsection.''.
(f) Authorization of Appropriations.--Section 310B(e)(12) of such
Act (7 U.S.C. 1932(e)(12)), as so redesignated by subsections (c)
through (e) of this section, is amended by striking ``2007'' and
inserting ``2012''.
SEC. 6010. CRITERIA TO BE APPLIED IN PROVIDING LOANS AND LOAN
GUARANTEES UNDER THE BUSINESS AND INDUSTRY LOAN PROGRAM.
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)(A) In providing loans and loan guarantees under this section,
the Secretary shall consider an application more favorably when
compared to other applications to the extent that the project described
in the application supports community development and farm and ranch
income by marketing, distributing, storing, aggregating, or processing
a locally or regionally produced agricultural product.
``(B) In subparagraph (A), the term `locally or regionally produced
agricultural product' means an agricultural product--
``(I) which is produced and distributed in the locality or
region where the finished product is marketed;
``(ii) which has been shipped a total distance of 400 or
fewer miles, as determined by the Secretary; and
``(iii) about which the distributor has conveyed to the
end-use consumers information regarding the origin of the
product or production practices, or other valuable
information.''.
SEC. 6011. APPROPRIATE TECHNOLOGY TRANSFER FOR RURAL AREAS PROGRAM.
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;
``(C) operates national sustainable agriculture
technical assistance programs; and
``(D) provides the technical assistance through
toll-free hotlines, a website, publications, and work
shops.
``(2) Establishment.--The Secretary shall establish a
national appropriate technology transfer for rural areas
program to assist agricultural producers that are seeking
information to help agricultural producers--
``(A) reduce input costs;
``(B) conserve energy resources;
``(C) diversify operations through new energy crops
and energy generation facilities; and
``(D) expand markets for the agricultural
commodities produced by the producers through use of
sustainable farming practices.
``(3) Implementation.--
``(A) In general.--The Secretary shall carry out
the program under this subsection by making a grant to,
or offering to enter into a cooperative agreement with,
a national nonprofit agricultural assistance
organization.
``(B) Cost share.--A grant made, or cooperative
agreement entered into, under subparagraph (A) shall
provide 100 percent of the cost of providing
information pursuant to paragraph (2).
``(4) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary to carry out
this subsection $5,000,000 for each fiscal year.''.
SEC. 6012. GRANTS TO IMPROVE TECHNICAL INFRASTRUCTURE AND IMPROVE
QUALITY OF RURAL HEALTH CARE FACILITIES.
Subtitle D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981-2008r), as amended by section 5025 of this Act, is amended
by inserting after section 365 the following:
``SEC. 366. GRANTS TO IMPROVE TECHNICAL INFRASTRUCTURE AND IMPROVE
QUALITY OF RURAL HEALTH CARE FACILITIES.
``(a) In General.--The Secretary shall establish a program to award
grants to rural health facilities for the purpose of assisting the
facilities in--
``(1) purchasing health information technology to improve
quality in health care and patient safety; or
``(2) improving health care quality and patient safety,
including the development of--
``(A) quality improvement support structures to
assist rural health systems and professionals--
``(i) achieve greater integration of
personal and population health services; and
``(ii) address safety, effectiveness,
patient- or community-centeredness, timeliness,
efficiency, and equity; and
``(B) innovative approaches to the financing and
delivery of health services to achieve rural health
quality goals.
``(b) Definitions.--In this section:
``(1) Health information technology.--The term `health
information technology' includes total expenditures incurred
for--
``(A) purchasing, leasing, and installing computer
software and hardware, including handheld computer
technologies, and related services;
``(B) making improvements to computer software and
hardware;
``(C) purchasing or leasing communications
capabilities necessary for clinical data access,
storage, and exchange;
``(D) services associated with acquiring,
implementing, operating, or optimizing the use of
computer software and hardware and clinical health care
informatics systems;
``(E) providing education and training to eligible
entity staff on information systems and technology
designed to improve patient safety and quality of care;
and
``(F) purchasing, leasing, subscribing, or
servicing support to establish interoperability that--
``(i) integrates patient-specific clinical
data with well-established national treatment
guidelines;
``(ii) provides ongoing, continuous quality
improvement functions that allow providers to
assess improvement rates over time and against
averages for similar providers; and
``(iii) integrates with larger health
networks.
``(2) Rural area.--The term `rural area' means any area of
the United States that is not--
``(A) included within the boundaries of any city,
town, borough, or village, whether incorporated or
unincorporated, with a population of more than 20,000
inhabitants; or
``(B) the urbanized area contiguous and adjacent to
such a city or town.
``(3) Rural health facility.--The term `rural health
facility' means any of the following:
``(A) Sole community hospital.--A hospital (as
defined in section 1886(a)(2) of the Social Security
Act (42 U.S.C. 1395ww(a)(2))).
``(B) Critical access hospital.--A critical access
hospital (as defined in section 1861(mm)(1) of the
Social Security Act (42 U.S.C. 1395x(mm)(1))).
``(C) Federally qualified health center in rural
areas.--A federally qualified health center (as defined
in section 1861(aa)(4) of the Social Security Act (42
U.S.C. 1395x(aa)(4)) that is located in a rural area.
``(D) Rural physician or rural physician group
practice.--A physician or physician group practice that
is located in a rural area.
``(E) Rural health clinic.--A rural health clinic
(as defined in section 1861(aa)(2) of the Social
Security Act (42 U.S.C. 1395x(aa)(2))).
``(F) Medicare dependent hospital.--A medicare-
dependent, small rural hospital (as defined in section
1886(d)(5)(G)(iv) of the Social Security Act (42 U.S.C.
1395ww(d)(5)(G)(iv))).
``(c) Amount of Grant.--The Secretary shall determine the amount of
a grant awarded under this section.
``(d) Furnishing the Secretary With Information.--An eligible
entity receiving a grant under this section shall furnish the Secretary
with such information as the Secretary may require to--
``(1) evaluate the project for which the grant is made; and
``(2) ensure that assistance provided under the grant is
expended for the purposes for which the grant is made.
``(e) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section not more than
$30,000,000 for each of the fiscal years 2008 through 2012.''.
SEC. 6013. RURAL ENTREPRENEUR AND MICROENTERPRISE ASSISTANCE PROGRAM.
Subtitle D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981-2008r), as amended by sections 5025 and 6012 of this Act,
is amended by inserting after section 366 the following:
``SEC. 367. RURAL ENTREPRENEUR AND MICROENTERPRISE ASSISTANCE PROGRAM.
``(a) Definitions.--In this section:
``(1) Economically disadvantaged microentrepreneur.--The
term `economically disadvantaged microentrepreneur' means an
owner, majority owner, or developer of a microenterprise that
has the ability to compete in the private sector but has been
impaired because of diminished capital and credit
opportunities, as compared to other microentrepreneurs in the
industry.
``(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) Intermediary.--The term `intermediary' means a
nonprofit entity that provides assistance--
``(A) to a microenterprise development
organization; or
``(B) for a microenterprise development program.
``(4) Low-income individual.--The term `low-income
individual' means an individual with an income (adjusted for
family size) of not more than 80 percent of the national median
income.
``(5) Microcredit.--The term `microcredit' means a business
loan or loan guarantee of not more than $50,000 that is
provided to a rural entrepreneur.
``(6) Microenterprise.--The term `microenterprise' means--
``(A) a sole proprietorship; or
``(B) a business entity with not more than 10 full-
time-equivalent employees.
``(7) Microenterprise development organization.--
``(A) In general.--The term `microenterprise
development organization' means a nonprofit entity
that--
``(i) provides training and technical
assistance to rural entrepreneurs; and
``(ii) facilitates access to capital or
another service described in subsection (b) for
rural entrepreneurs.
``(B) Inclusions.--The term `microenterprise
development organization' includes an organization
described in subparagraph (A) with a demonstrated
record of delivering services to economically
disadvantaged microentrepreneurs, or an effective plan
to develop a program to deliver microenterprise
services to rural entrepreneurs effectively, as
determined by the Secretary.
``(8) Microenterprise development program.--The term
`microenterprise development program' means a program
administered by a qualified organization serving a rural area.
``(9) Microentrepreneur.--The term `microentrepreneur
means' the owner, operator, or developer of a microenterprise.
``(10) Program.--The term `program' means the rural
entrepreneur and microenterprise program established under
subsection (b)(1).
``(11) Qualified organization.--The term `qualified
organization' means--
``(A) a microenterprise development organization or
microenterprise development program that has a
demonstrated record of delivering microenterprise
services to rural entrepreneurs, or an effective plan
to develop a program to deliver microenterprise
services to rural entrepreneurs effectively, as
determined by the Secretary;
``(B) an intermediary that has a demonstrated
record of delivering assistance to microenterprise
development organizations or microenterprise
development programs;
``(C) an Indian tribe, the tribal government of
which certifies to the Secretary that there is no
microenterprise development organization or
microenterprise development program under the
jurisdiction of the Indian tribe;
``(D) a group of 2 or more organizations or Indian
tribes described in any of subparagraphs (A) through
(C) that agree to act jointly as a qualified
organization under this section; or
``(E) for purposes of subsection (b), a public
college or university that has a demonstrated record of
delivering assistance to microenterprise development
organizations or microenterprise development programs.
``(12) Rural area.--The term `rural area' means any area of
the United States that is not--
``(A) included within the boundaries of any city,
town, borough, or village, whether incorporated or
unincorporated, with a population of more than 20,000
inhabitants; or
``(B) the urbanized area contiguous and adjacent to
such a city or town.
``(13) Rural capacity-building service.--The term `rural
capacity-building service' means a service provided to an
organization that--
``(A) is, or is in the process of becoming, a
microenterprise development organization or
microenterprise development program; and
``(B) serves rural areas for the purpose of
enhancing the ability of the organization to provide
training, technical assistance, and other related
services to rural entrepreneurs.
``(14) Rural entrepreneur.--The term `rural entrepreneur'
means a microentrepreneur, or prospective microentrepreneur--
``(A) the principal place of business of which is
in a rural area; and
``(B) that is unable to obtain sufficient training,
technical assistance, or microcredit elsewhere, as
determined by the Secretary.
``(15) Tribal government.--The term `tribal government'
means the governing body of an Indian tribe.
``(b) Rural Entrepreneurship and Microenterprise Program.--
``(1) Establishment.--The Secretary shall establish a rural
entrepreneurship and microenterprise program.
``(2) Purpose.--The purpose of the program shall be to
provide low-income individuals and moderate-income individuals
with--
``(A) the skills necessary to establish new small
businesses in rural areas; and
``(B) continuing technical and financial assistance
as individuals and business starting or operating small
businesses.
``(3) Grants.--
``(A) In general.--The Secretary may make a grant
under the program to a qualified organization--
``(i) to provide training, operational
support, or a rural capacity-building service
to a qualified organization to assist the
qualified organization in developing
microenterprise training, technical assistance,
market development assistance, and other
related services, primarily for business with
10 or fewer full-time-equivalent employees;
``(ii) to assist in researching and
developing the best practices in delivering
training, technical assistance, and microcredit
to rural entrepreneurs; and
``(iii) to carry out such other projects
and activities as the Secretary determines to
be consistent with the purposes of this
section.
``(B) Diversity.--In making grants under this
paragraph, the Secretary shall ensure, to the maximum
extent practicable, that grant recipients include
qualified organizations--
``(i) of varying sizes; and
``(ii) that serve racially and ethnically
diverse populations.
``(C) Matching requirement.--
``(i) In general.--As a condition of any
grant made to a qualified organization under
this paragraph, the Secretary shall require the
qualified organization to match not less than
25 percent of the total amount of the grant.
``(ii) Sources.--In addition to cash from
non-Federal sources, a matching share provided
by the qualified organization may include
indirect costs or in-kind contributions funded
under non-Federal programs.
``(4) Rural microloan and technical assistance program.--
``(A) Establishment.--In carrying out the program,
the Secretary may carry out a rural microloan program.
``(B) Purpose.--The purpose of the rural microloan
program shall be to provide technical and financial
assistance through qualified organizations to sole
proprietorships and small businesses located in rural
areas with a particular focus on businesses with 10 or
fewer full-time equivalent employees.
``(C) Authority of secretary.--In carrying out the
rural microloan program, the Secretary may--
``(i) make loans to qualified organizations
for the purpose of making short-term, fixed
interest rate microloans to startup, newly
established, and growing rural microbusiness
concerns; and
``(ii) in conjunction with the loans,
provide grants in accordance with subparagraph
(E) to the organizations for the purpose of
providing intensive marketing, management, and
technical assistance to small business concerns
that are borrowers under this paragraph.
``(D) Loan duration; interest rates; conditions.--
``(i) Loan duration.--A loan made by the
Secretary under this paragraph shall be for a
term of 20 years.
``(ii) Applicable interest rates.--A loan
made by the Secretary under this paragraph to a
qualified organization shall bear an annual
interest rate of at least 1 percent.
``(iii) Deferral of interest and
principal.--The Secretary may permit the
deferral of payments, for principal and
interest, on a loan made under this paragraph
for a period of not more than 2 years,
beginning on the date the loan is made.
``(E) Grant amounts.--
``(i) In general.--Except as otherwise
provided in this section, each qualified
organization that receives a loan under this
paragraph shall be eligible to receive a grant
to provide marketing, management, and technical
assistance to small business concerns that are
borrowers or potential borrowers under this
subsection.
``(ii) Maximum amount for microenterprise
development organizations.--Each
microenterprise development organization that
receives a loan under this paragraph shall
receive an annual grant in an amount equal to
not more than 25 percent of the total
outstanding balance of loans made to the
microenterprise development organization under
this paragraph, as of the date the grant is
made.
``(iii) Matching requirement.--
``(I) In general.--As a condition
of any grant made to a qualified
organization under this subparagraph,
the Secretary shall require the
qualified organization to match not
less than 15 percent of the total
amount of the grant.
``(II) Sources.--In addition to
cash from non-Federal sources, a
matching share provided by the
qualified organization may include
indirect costs or in-kind contributions
funded under non-Federal programs.
``(c) Administrative Expenses.--Not more than 10 percent of
assistance received by a qualified organization for a fiscal year under
this section may be used to pay administrative expenses.
``(d) Furnishing the Secretary With Information.--A qualified
organization that receives a grant under subsection (b)(3) or loan
under subsection (b)(4) shall furnish the Secretary by December 1 such
information as the Secretary may require to ensure that assistance
provided under the grant or loan is expended for the purposes for which
the grant or loan is made.
``(e) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section not more than
$20,000,000 for each of the fiscal years 2008 through 2012.''.
SEC. 6014. CRITERIA TO BE APPLIED IN CONSIDERING APPLICATIONS FOR RURAL
DEVELOPMENT PROJECTS.
Subtitle D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981-2008r), as amended by sections 5025, 6012, and 6013 of this
Act, is amended by inserting after section 367 the following:
``SEC. 368. CRITERIA TO BE APPLIED IN CONSIDERING APPLICATIONS FOR
RURAL DEVELOPMENT PROJECTS.
``(a) In General.--The Secretary shall review the income
demographics, population, seasonal increases, and other factors as
determined by the Secretary, of eligible communities for each program
authorized or modified by, or funded pursuant to, an amendment made by
title VI of the Farm, Nutrition, and Bioenergy Act of 2007 or section
306, 306A, 306C, 306D, 306E, 310(c), 310(e), 310B(b), 310B(c), 310B(e),
or 379B, or subtitle F, G, H, or I of this Act, and which proposes to
serve a rural area (as defined by the applicable law).
``(b) Regulations.--The Secretary shall issue regulations to
establish the applicable limitations that a rural area cannot exceed in
order to remain eligible for a program referred to in subsection
(a).''.
SEC. 6015. 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
paragraphs (B) and (C) and inserting the following:
``(B) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary to carry
out this section $10,000,000 for each of the fiscal
years 2008 through 2012.''.
(b) Elimination of Requirement to Privatize Revolving Fund.--
Section 375 of such Act (7 U.S.C. 2008j) is amended by striking
subsection (j).
SEC. 6016. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.
Section 378(g)(1) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2008m(g)(1)) is amended by striking ``2003 through 2007''
and inserting ``2008 through 2012''.
SEC. 6017. 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 by redesignating
paragraphs (3) and (4) as paragraphs (4) and (5) and 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) Limitations on Authorization of Appropriations.--Section
379A(c)(5) of such Act (7 U.S.C. 2008o(c)(5)), as so redesignated by
subsection (a) of this section, is amended by striking ``2002 through
2007'' and inserting ``2008 through 2012''.
SEC. 6018. 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. 6019. 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 such Act (7 U.S.C.
2009aa-13) is amended by striking ``2007'' and inserting ``2012''.
SEC. 6020. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.
(a) Federal Share of Administrative Expenses.--Section 383B(g)(1)
of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009bb-
1(g)(1)) is amended--
(1) in subparagraph (A), by striking ``2002'' and inserting
``2007'';
(2) in subparagraph (B), by striking ``2003'' and inserting
``2008''; and
(3) in subparagraph (C), by striking ``2004'' and inserting
``2009''.
(b) Technical Amendment.--Section 383B(d)(6)(A) of such Act (7
U.S.C. 2009bb-1(d)(6)(A)) is amended by inserting ``and resource
conservation'' after ``development''.
(c) Elimination of Prioritization Ranking of Activities to Be
Funded.--Section 383C(b)(2) of such Act (7 U.S.C. 2009bb-2(b)(2)) is
amended by striking ``activities in the following order of priority''
and inserting ``following activities''.
(d) Elimination of Isolated Area of Distress Designation.--
(1) In general.--Section 383F(a) of such Act (7 U.S.C.
2009bb-5(a)) is amended--
(A) by adding ``and'' at the end of paragraph (1);
(B) by striking ``; and'' at the end of paragraph
(2) and inserting a period; and
(C) by striking paragraph (3).
(2) Conforming amendments.--Section 383F(b) of such Act (7
U.S.C. 2009bb-5(b)) is amended--
(A) in paragraph (1), by striking ``and isolated
areas of distress''; and
(B) in paragraph (2), by striking ``or isolated
areas of distress''.
(e) Reduction of Minimum Funds Allocation for Distressed
Counties.--Section 383F(b)(1) of such Act (7 U.S.C. 2009bb-5(b)(1)) is
amended by striking ``75'' and inserting ``50''.
(f) Elimination of Prohibition on Providing Funds to Nondistressed
Counties.--Section 383F of such Act (7 U.S.C. 2009bb-5) is amended by
striking subsection (c) and redesignating subsection (d) as subsection
(c).
(g) Inclusion of Renewable Energy Among Objects of Minimum Funds
Allocation.--Section 383F(c) of such Act (7 U.S.C. 2009bb-5(c)), as so
redesignated by subsection (a) of this section, is amended--
(1) in the subsection heading, by inserting ``Renewable
Energy,'' after ``Telecommunication,''; and
(2) by inserting ``renewable energy,'' after
``telecommunication''.
(h) Authorization of Appropriations.--Section 383M(a) of such Act
(7 U.S.C. 2009bb-12(a)) is amended by striking ``2002 through 2007''
and inserting ``2008 through 2012''.
(i) Termination of Authority.--Section 383N of such Act (7 U.S.C.
2009bb-13) is amended by striking ``2007'' and inserting ``2012''.
SEC. 6021. RURAL STRATEGIC INVESTMENT PROGRAM.
(a) Limitations on Authorization of Appropriations.--Section 385E
of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009dd-4)
is amended to read as follows:
``SEC. 385E. LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to the Secretary to carry
out this subtitle not more than $25,000,000 for each of the fiscal
years 2008 through 2012.''.
(b) Preservation and Promotion of Rural Heritage.--
(1) Definition.--Section 385B of such Act (7 U.S.C. 2009dd-
1) is amended by adding at the end the following:
``(12) Rural heritage.--The term `rural heritage' means
historic sites, structures, and districts which may include
rural downtown areas and main streets, neighborhoods,
farmsteads, scenic and historic trails, and heritage areas and
historic landscapes.''.
(2) Rural strategic investment planning grants.--Section
385F(b) of such Act (7 U.S.C. 2009dd-5(b)) is amended--
(A) by striking ``and'' at the end of paragraph
(6); and
(B) by redesignating paragraph (7) as paragraph (8)
and inserting after paragraph (6) the following:
``(7) preservation and promotion of rural heritage; and''.
(3) Innovation grants.--Section 385G(d) of such Act (7
U.S.C. 2009dd-66-(d)) is amended--
(A) by striking ``and'' at the end of paragraph
(6); and
(B) by redesignating paragraph (7) as paragraph (8)
and inserting after paragraph (6) the following:
``(7) demonstrate a plan to protect and promote rural
heritage; and''.
SEC. 6022. EXPANSION OF 911 ACCESS.
Section 315(b) of the Rural Electrification Act of 1936 (7 U.S.C.
904e(b)) is amended by striking ``2002 through 2007'' and inserting
``2008 through 2012''.
SEC. 6023. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL
AREAS.
(a) Definitions.--Section 601(b) of the Rural Electrification Act
of 1936 (7 U.S.C. 950bb(b)) is amended by striking paragraph (2) and
inserting the following:
``(2) Eligible rural community.--The term `eligible rural
community' means any area of the United States that is not--
``(A) included within the boundaries of any city,
town, borough, or village, whether incorporated or
unincorporated, with a population of more than 20,000
inhabitants; or
``(B) the urbanized area contiguous and adjacent to
such a city or town.''.
(b) Prioritization of Applications.--
(1) Definition.--Section 601(b) of such Act (7 U.S.C.
950bb(b)), as amended by subsection (a) of this section, is
amended by adding at the end the following:
``(3) Incumbent service provider.--The term `incumbent
service provider' means, with respect to an application
submitted pursuant to this section, an entity that is providing
broadband service to at least 5 percent of the households in
the service area proposed in the application.''.
(2) Priority based on number of incumbent service
providers.--Section 601(c) of such Act (7 U.S.C. 950bb(c)) is
amended by adding at the end the following:
``(3) Applications prioritized based on number of incumbent
service providers.--
``(A) In general.--In making or guaranteeing loans
under paragraph (1), the Secretary shall give priority,
in the following order, to applications from eligible
rural communities that have--
``(i) no incumbent service provider;
``(ii) 1 incumbent service provider; or
``(iii) 2 incumbent service providers who,
together, serve not more than 25 percent of the
households in the service area proposed in the
application.
``(B) Prohibitions.--In carrying out this section,
the Secretary may not--
``(i) make a loan to an eligible community
in which there are 3 or more incumbent service
providers, unless--
``(I) the loan is to an incumbent
service provider of the community;
``(II) the other providers in that
community are notified of the
application before approval by the
Secretary, and have sufficient time to
comment on the application; and
``(III) the application includes
substantially increasing--
``(aa) the quality of
broadband service in the
community; and
``(bb) the provision of
broadband service to unserved
households inside and outside
the community; or
``(ii) make a loan for new construction to
any community in which more than 75 percent of
the households may obtain affordable broadband
service, on request, from at least 1 incumbent
service provider.''.
(c) Paperwork Reduction.--Section 601(c) of such Act (7 U.S.C.
950bb(c)), as amended by subsection (b)(2) of this section, is amended
by adding at the end the following:
``(4) Paperwork reduction.--The Secretary shall take steps
to reduce the cost and paperwork associated with applying for a
loan or loan guarantee under this section by first-time
applicants, particularly those who are smaller and start-up
Internet providers, including by providing for a new
application which shall maintain the ability of the Secretary
to make an analysis of the risk associated with the loan
involved.''.
(d) Increase in Maximum Number of Subscriber Lines That May Be
Served by an Eligible Entity.--Section 601(d)(3) of such Act (7 U.S.C.
950bb(d)(3)) is amended by striking ``2'' and inserting ``10''.
(e) Limitation on Funds to Entities With More Than 2 Percent of
Subscriber Lines.--Section 601(d) of such Act (7 U.S.C. 950bb(d)) is
amended by adding at the end the following:
``(4) Limitation on funds to entities with more than 2
percent of subscriber lines.--Not more than 25 percent of the
loans made under this section in a single fiscal year may be
approved for entities that serve more than 2 percent of the
telephone subscriber lines in the United States.''.
(f) Loan Term Not to Exceed 35 Years.--Section 601(g)(2) of such
Act (7 U.S.C. 950bb(g)(2)) is amended by striking ``not to exceed the
useful life of the assets constructed, improved, or acquired with the
proceeds of the loan or extension of credit.'' and inserting ``of such
length, not exceeding 35 years, as the borrower may request, so long as
the Secretary determines that the loan is adequately secured. 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.''
(g) Adequacy of Security.--Section 601 of such Act (7 U.S.C. 950bb)
is amended by redesignating subsections (h) through (k) as subsections
(i) through (l), respectively, and inserting after subsection (g) the
following:
``(h) Adequacy of Security.--The Secretary shall ensure that the
type, amount, and method of security used to secure any loan or loan
guarantee provided under this section is commensurate to the risk
involved with the loan or loan guarantee, particularly when the loan or
loan guarantee is issued to a financially healthy, strong, and stable
entity. In determining the amount and method of security, the Secretary
shall consider reducing the security in areas that do not have
broadband service.''.
(h) General Report on Program.--Section 601 of such Act (7 U.S.C.
950bb), as amended by subsection (g) of this section, is amended by
redesignating subsections (k) and (l) as subsections (l) and (m),
respectively, and inserting after subsection (j) the following:
``(k) General Program Report.--Not later than December 1 of each
year, 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
details for the preceding fiscal year--
``(1) the loans made under this section;
``(2) the communities served under this section;
``(3) the speed of the broadband service offered by
applicants for, and recipients of, loans or loan guarantees
under this section;
``(4) the type of services offered by the applicants and
recipients;
``(5) the length of time to approve applications submitted
pursuant to this section; and
``(6) the outreach efforts undertaken by the Department of
Agriculture to encourage persons in areas without broadband
service to submit applications pursuant to this section.''.
(i) National Center for Rural Telecommunications Assessment.--
Section 601 of such Act (7 U.S.C. 950bb), as amended by subsections (g)
and (h) of this section, is amended by redesignating subsections (l)
and (m) as subsections (m) and (n), respectively, and inserting after
subsection (k) the following:
``(l) National Center for Rural Telecommunications Assessment.--
``(1) Establishment of center.--The Secretary shall
designate a National Center for Rural Telecommunications
Assessment (in this subsection referred to as the `Center').
``(2) Criteria.--The Secretary shall use the following
criteria in making the designation:
``(A) The Center must be an entity with a focus on
rural policy research and a minimum of 5 years
experience in rural telecommunications research and
assessment.
``(B) The Center must be capable of assessing
broadband services in rural areas.
``(C) The Center must have significant experience
with other rural economic development centers and
organizations in the assessment of rural policies and
formulation of policy solutions at the local, State,
and Federal level.
``(3) Board.--The management of the Center shall be vested
in a board of directors that is capable of oversight of the
duties set forth in paragraph (4).
``(4) Duties.--The Center shall--
``(A) assess the effectiveness of programs provided
under subsection (d) in increasing broadband
penetration and purchase in rural areas, especially in
those rural communities identified by the Secretary as
having no service before award of a broadband loan or
loan guarantee under subsection (d);
``(B) develop assessments of broadband availability
in rural areas, working with existing rural development
centers selected by the Center;
``(C) identify policies and initiatives at the
local, State and Federal level that have increased
broadband penetration and purchase in rural areas;
``(D) conduct a national study of rural households
and businesses focusing on the adoption of, barriers
to, and utilization of broadband services; and
``(E) provide reports to the public on the
activities undertaken under this section.
``(5) Reporting requirements.--The Center shall report by
December 1 of each year to the Secretary its activities, the
results of its research, and any such information the Secretary
may request regarding the prior fiscal year. In reporting to
the Secretary the Center shall include the following:
``(A) Assessments of the programs provided under
subsection (b).
``(B) Annual assessments on broadband availability
in rural areas under consideration by the Center.
``(C) Annual assessments on the effects of the
policy initiatives identified in paragraph (2)(C).
``(D) Results from the national study of rural
households and businesses conducted under paragraph
(4)(D).
``(6) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary to carry out
this subsection not more than $1,000,000 for each of the fiscal
years 2008 through 2012.''.
(j) Funding.--Section 601(m) of such Act (7 U.S.C. 950bb(l)) as so
redesignated by subsections (g) through (i) of this section, is
amended--
(1) by striking paragraph (1);
(2) by redesignating paragraphs (2), (3), and (4) as
paragraphs (1), (2), and (3), respectively;
(3) in paragraph (1)(B) (as so redesignated), by striking
``2007'' and inserting ``2012'';
(4) in paragraph (2) (as so redesignated), by striking
``2003 through 2007'' and inserting ``2008 through 2012''; and
(5) in paragraph (3) (as so redesignated), by adding at the
end the following:
``(D) Eligible tribal communities.--Of the amounts
made available under subparagraph (A) for a fiscal
year, 10 percent shall be reserved for entities serving
eligible tribal communities.
``(E) Unobligated amounts.--Any amounts in the
reserve established for eligible tribal communities for
a fiscal year under subparagraph (D) that are not
obligated by June 30 of the fiscal year shall be
available to the Secretary to make loans and loan
guarantees under this section to eligible entities in
any State, as determined by the Secretary.''.
(k) Extension of Authority To Issue Loans.--Section 601(n) of such
Act (7 U.S.C. 950bb(m)), as so redesignated by subsections (f) through
(h) of this section, is amended by striking ``2007'' and inserting
``2012''.
SEC. 6024. COMMUNITY CONNECT GRANT PROGRAM.
Title VI of the Rural Electrification Act of 1936 (7 U.S.C. 950bb)
is amended by adding at the end the following:
``SEC. 602. COMMUNITY CONNECT GRANT PROGRAM.
``(a) Establishment.--The Secretary shall establish a grant program
to be known as the `Community Connect Grant Program' to provide
financial assistance to eligible applicants to provide broadband
transmission service that fosters economic growth and delivers enhanced
educational, health care, and public safety services.
``(b) Eligibility.--To be eligible for a grant under this section,
the applicant must--
``(1) be legally organized as an incorporated tribal
organization, an Indian tribe, or tribal organization, as
defined in subsections (b) and (c) of section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C.
450b(b) and (c)), a State or local unit of government, or other
legal entity, including a cooperative, private corporation, or
limited liability company organized on a for-profit or not-for-
profit basis;
``(2) have the legal capacity and authority to own and
operate broadband facilities as proposed in its application, to
enter into contracts, and to otherwise comply with applicable
Federal statutes and regulations; or
``(3) be in an eligible rural community (as defined in
section 601(b)(2) of the Rural Electrification Act of 1936).
``(c) Ineligible Grant Purposes.--A grant made under this section
may not be used--
``(1) to finance the duplication of any broadband
transmission service provided by another entity; or
``(2) with respect to facilities, to provide local exchange
telecommunications service to any person or entity receiving
the service.
``(d) Priority.--In making grants under this section, the Secretary
shall give priority to grants that will enhance community access to
telemedicine and distance learning resources.
``(e) Matching Contributions.--
``(1) In general.--To be eligible to receive a grant under
subsection (a), a grant applicant shall provide a matching
contribution of at least 15 percent of the grant amount
requested, in funds and in-kind contributions in a proportion
to be determined by the Secretary.
``(2) Limitations.--
``(A) Costs incurred by or on behalf of an
applicant, for facilities, installed equipment, or
other services rendered before submission of a
completed application shall not be considered to be for
an eligible grant purpose or a matching contribution.
``(B) Any financial assistance from Federal sources
shall not be considered to be a matching contribution
for purposes of this section, unless there is a Federal
statutory exception specifically authorizing the
Federal financial assistance to be so considered.
``(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section not more than
$25,000,000 for each of the fiscal years 2008 through 2012.''.
SEC. 6025. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM.
Section 6402(i) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 1621 note; Public Law 107-171) is amended to read as
follows:
``(i) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section $6,000,000 for
each of the fiscal years 2008 through 2012.''.
SEC. 6026. RURAL FIREFIGHTERS AND EMERGENCY MEDICAL SERVICE ASSISTANCE
PROGRAM.
Section 6405 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 1621 note) is amended to read as follows:
``SEC. 6405. RURAL FIREFIGHTERS AND EMERGENCY MEDICAL SERVICE
ASSISTANCE PROGRAM.
``(a) Grants.--The Secretary shall award grants to eligible
entities to--
``(1) enable the entities to provide for improved emergency
medical services in rural areas; and
``(2) 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.
``(b) 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;
``(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 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 (e).
``(c) Use of Funds.--An entity shall use amounts received under a
grant made under subsection (a) only in rural areas to--
``(1) hire or recruit emergency medical service personnel;
``(2) recruit or retain volunteer emergency medical service
personnel;
``(3) train emergency medical service personnel in
emergency response, injury prevention, safety awareness, and
other topics relevant to the delivery of emergency medical
services;
``(4) fund training to meet State or Federal certification
requirements;
``(5) provide training for firefighters and emergency
medical personnel for improvements to the training facility,
equipment, curricula, and personnel;
``(6) develop new ways to educate emergency health care
providers through the use of technology-enhanced educational
methods (such as distance learning);
``(7) acquire emergency medical services vehicles,
including ambulances;
``(8) acquire emergency medical services equipment,
including cardiac defibrillators;
``(9) acquire personal protective equipment for emergency
medical services personnel as required by the Occupational
Safety and Health Administration; and
``(10) educate the public concerning cardiopulmonary
resuscitation (CPR), first aid, injury prevention, safety
awareness, illness prevention, and other related emergency
preparedness topics.
``(d) 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 (b)(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 (c).
``(e) Matching Requirement.--The Secretary may not make a grant
under this section to an entity unless the entity agrees that the
entity will make 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 5
percent of the amount received under the grant.
``(f) Emergency Medical Services.--In this section, the term
`emergency medical services'--
``(1) means resources used by a qualified public or private
nonprofit entity, or by any other entity recognized as
qualified by the State involved, to deliver medical care
outside of a medical facility under emergency conditions that
occur as a result of--
``(A) the condition of the patient; or
``(B) a natural disaster or similar situation; and
``(2) includes (compensated or volunteer) services
delivered by an emergency medical services provider or other
provider recognized by the State involved that is licensed or
certified by the State as an emergency medical technician or
the equivalent (as determined by the State), a registered
nurse, a physician assistant, or a physician that provides
services similar to services provided by such an emergency
medical services provider.
``(g) Authorization of Appropriations.--
``(1) In general.--There are 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 10 percent of
the amount appropriated under paragraph (1) for a fiscal year
may be used for administrative expenses.''.
SEC. 6027. VALUE-ADDED AGRICULTURAL MARKET DEVELOPMENT PROGRAM.
(a) Definition of Mid-Tier Value Chain.--Section 231(a) of the
Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public
Law 106-224) is amended by adding at the end the following:
``(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 family farms,
as defined in regulations pursuant to Section 302 of
the Consolidated Farm and Rural Development Act; and
``(B) obtains agreement from the eligible
agricultural producer group, farmer or rancher
cooperative, or majority-controlled producer-based
business venture engaged in the value chain in the
method for price determination.''.
(b) Funding; Reservation of Funds; Grant Award Criteria.--Section
231(b) of such Act (7 U.S.C. 1621 note; Public Law 106-224) is
amended--
(1) by striking paragraph (4) and inserting the following:
``(4) Funding.--Not later than 30 days after the date of
the enactment of this paragraph, on October 1, 2008, and on
each October 1 thereafter through October 1, 2012, of the funds
of the Commodity Credit Corporation, the Secretary shall make
available to carry out this subsection $30,000,000, to remain
available until expended.
``(5) Reservation of funds for projects to benefit
beginning farmers and ranchers or socially disadvantaged
farmers and ranchers and mid-tier value chains.--
``(A) In general.--The Secretary shall reserve 10
percent of the amounts made available under paragraph
(4) to fund projects that benefit beginning farmers and
ranchers (as defined in section 343(a)(11) of the
Consolidated Farm and Rural Development Act) or
socially disadvantaged farmers and ranchers (as defined
in section 355(e) of such Act).
``(B) Mid-tier value chains.--The Secretary shall
reserve 10 percent of the amounts made available under
paragraph (4) to fund applications of eligible entities
described in paragraph (1) that propose to develop mid-
tier value chains.
``(C) Unobligated amounts.--Any amounts in the
reserves established under subparagraphs (A) and (B)
that are not obligated by June 30 of the fiscal year
shall be available to the Secretary to make grants
under this section to eligible entities in any State,
as determined by the Secretary.''; and
(2) by adding at the end the following:
``(6) Criteria to be applied in awarding grants.--In
awarding grants under this section, the Secretary shall
consider an application more favorably when compared to other
applications to the extent that the project contributes to
increasing opportunities for operators of small and medium-size
farms and ranches structured as family farms (as defined in
regulations prescribed under section 302 of the Consolidated
Farm and Rural Development Act).''.
SEC. 6028. ASSISTANCE FOR RURAL PUBLIC TELEVISION STATIONS.
Section 2333 of the Food, Agriculture, Conservation and Trade Act
of 1990 (7 U.S.C. Sec. 950aaa-2) is amended by adding at the end the
following:
``(j) Digital Service Transition Assistance for Public Television
Stations.--The Secretary may provide grants under this section to
noncommercial education television broadcast stations that serve rural
areas for the purposes of developing digital facilities, equipment, and
infrastructure to enhance digital services to rural areas.''.
SEC. 6029. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS.
(a) 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''.
(b) Conforming Amendment.--Section 1(b) of Public Law 102-551 (7
U.S.C. 950aaa note) is amended by striking ``2007'' and inserting
``2012''.
SEC. 6030. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR
TELEPHONE PURPOSES.
Section 313A(f) of the Rural Electrification Act of 1936 (7 U.S.C.
940c-1(f)) is amended by striking ``2007'' and inserting ``2012''.
SEC. 6031. COMPREHENSIVE RURAL BROADBAND STRATEGY.
Not later than 180 days after the date of the enactment of this
Act, the Secretary of Agriculture shall submit to the President, the
Committee on Agriculture of the House of Representatives, and the
Committee on Agriculture, Nutrition, and Forestry of the Senate 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 improve and streamline the
polices, programs, and services;
(B) to coordinate among Federal agencies regarding
existing rural broadband or rural initiatives that
could be of value to rural broadband development;
(C) to address both short- and long-term solutions
and needs assessments for a rapid build-out of rural
broadband solutions and applications for Federal,
State, regional, and local government policy makers;
(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
(E) to promote successful model deployments and
appropriate technologies being used in rural areas so
that State, regional, and local governments can benefit
from the cataloging and successes of other State,
regional, and local governments; and
(2) a description of goals and timeframes to achieve the
strategic plans and visions identified in the report.
SEC. 6032. STUDY OF RAILROAD ISSUES.
(a) In General.--The Secretary of Agriculture, in coordination with
the Secretary of Transportation, shall conduct a study of railroad
issues regarding the movement of agricultural products, domestically
produced renewable fuels and domestically produced resources for the
production of electricity for rural America, and economic development
in rural America. The study shall include an examination of the
following:
(1) The importance of freight railroads 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
America;
(E) the location of grain elevators, ethanol
plants, and other facilities;
(F) the development of manufacturing facilities in
rural America; and
(G) the vitality and economic development of rural
communities.
(2) The sufficiency in rural America of railroad capacity,
the sufficiency of competition in the railroad system, the
reliability of rail service, and the reasonableness of railroad
prices.
(3) The accessibility to rail customers in rural America of
Federal processes for the resolution of rail customer
grievances with the railroads.
(b) Report to the Congress.--Within 9 months after the date of the
enactment of this Act, the Secretary of Agriculture shall submit to the
Congress a report that contains the results of the study required by
subsection (a), and the recommendations of the Secretary for new
Federal policies to address any problems identified by the study.
TITLE VII--RESEARCH
Subtitle A--General Provisions
Sec. 7101. Definitions.
Sec. 7102. Budget submission and funding.
Sec. 7103. Additional purposes of agricultural research and extension.
Sec. 7104. National agricultural research program office.
Sec. 7105. Establishment of competitive grant programs under the
National Institute for Food and
Agriculture.
Sec. 7106. Merging of IFAFS and NRI.
Sec. 7107. Capacity building grants for ASCARR institutions.
Sec. 7108. Establishment of research laboratories for animal diseases.
Sec. 7109. Grazinglands research laboratory.
Sec. 7110. Researcher training.
Sec. 7111. Fort Reno Science Park research facility.
Sec. 7112. Assessing the nutritional composition of beef products.
Sec. 7113. Sense of Congress regarding funding for human nutrition
research.
Subtitle B--National Agricultural Research, Extension, and Teaching
Policy Act of 1977
Sec. 7201. Advisory board.
Sec. 7202. Advisory board termination.
Sec. 7203. Renewable energy committee.
Sec. 7204. Specialty crop committee report.
Sec. 7205. Inclusion of UDC in grants and fellowships for food and
agricultural sciences education.
Sec. 7206. Grants and fellowships for food and agricultural sciences
education.
Sec. 7207. Grants for research on production and marketing of alcohols
and industrial hydrocarbons from
agricultural commodities and forest
products.
Sec. 7208. Policy research centers.
Sec. 7209. Human nutrition intervention and health promotion research
program.
Sec. 7210. Pilot research program to combine medical and agricultural
research.
Sec. 7211. Nutrition education program.
Sec. 7212. Continuing animal health and disease research programs.
Sec. 7213. Cooperation among eligible institutions.
Sec. 7214. Appropriations for research on national or regional
problems.
Sec. 7215. Authorization level of extension at 1890 land-grant
colleges.
Sec. 7216. Authorization level for agricultural research at 1890 land-
grant colleges.
Sec. 7217. Grants to upgrade agriculture and food sciences facilities
at the District of Columbia Land Grant
University.
Sec. 7218. Grants to upgrade agricultural and food sciences facilities
at 1890 land-grant colleges, including
Tuskegee University.
Sec. 7219. National research and training virtual centers.
Sec. 7220. Matching funds requirement for research and extension
activities of 1890 institutions.
Sec. 7221. Hispanic-serving institutions.
Sec. 7222. Hispanic-serving agricultural colleges and universities.
Sec. 7223. International agricultural research, extension, and
education.
Sec. 7224. Competitive grants for international agricultural science
and education programs.
Sec. 7225. Limitation on indirect costs for agricultural research,
education, and extension programs.
Sec. 7226. Research equipment grants.
Sec. 7227. University research.
Sec. 7228. Extension service.
Sec. 7229. Supplemental and alternative crops.
Sec. 7230. Aquaculture Assistance Programs.
Sec. 7231. Rangeland research.
Sec. 7232. Special authorization for biosecurity planning and response.
Sec. 7233. Resident instruction and distance education grants program
for insular area institutions of higher
education.
Sec. 7234. Hispanic Serving Institutions.
Sec. 7235. Specialty crops policy research institute.
Sec. 7236. Emphasis of Human Nutrition Initiative.
Sec. 7237. Grants to upgrade agriculture and food sciences facilities
at insular area land-grant institutions.
Subtitle C--Food, Agriculture, Conservation, and Trade Act of 1990
Sec. 7301. National genetics resources program.
Sec. 7302. National agricultural weather information system.
Sec. 7303. Partnerships.
Sec. 7304. Aflatoxin research and extension.
Sec. 7305. High-priority research and extension areas.
Sec. 7306. High-priority research and extension initiatives.
Sec. 7307. Nutrient management research and extension initiative.
Sec. 7308. Agricultural telecommunications program.
Sec. 7309. Assistive technology program for farmers with disabilities.
Sec. 7310. Organic research.
Sec. 7311. National rural information center clearinghouse.
Sec. 7312. New era rural technology program.
Subtitle D--Agricultural Research, Extension, and Education Reform Act
of 1998
Sec. 7401. Partnerships for high-value agricultural product quality
research.
Sec. 7402. Precision agriculture.
Sec. 7403. Biobased products.
Sec. 7404. Thomas Jefferson initiative for crop diversification.
Sec. 7405. Integrated research, education, and extension competitive
grants program.
Sec. 7406. Fusarium graminearum grants.
Sec. 7407. Bovine Johne's disease control program.
Sec. 7408. Grants for youth organizations.
Sec. 7409. Agricultural biotechnology research and development for
developing countries.
Sec. 7410. Agricultural bioenergy and biobased products research
initiative.
Sec. 7411. Specialty crop research initiative.
Sec. 7412. Office of pest management policy.
Subtitle E--Other Laws
Sec. 7501. Critical agricultural materials act.
Sec. 7502. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7503. Agricultural experiment station Research Facilities Act.
Sec. 7504. National Agricultural Research, Extension, and Teaching
Policy Act Amendments of 1985.
Sec. 7505. Competitive, Special, and Facilities Research Grant Act
(national research initiative).
Sec. 7506. Agricultural Risk Protection Act of 2000 (carbon cycle
research).
Sec. 7507. Renewable Resources Extension Act of 1978.
Sec. 7508. National Aquaculture Act of 1980.
Sec. 7509. Construction of a Chinese Garden at the National Arboretum.
Sec. 7510. Public education regarding use of biotechnology in producing
food for human consumption.
Sec. 7511. Fresh cut produce safety grants.
Sec. 7512. UDC/EFNEP Eligibility.
Sec. 7513. Hatch Act of 1987.
Subtitle F--Additional Provisions
Sec. 7601. Merit review of extension and educational grants.
Sec. 7602. Review of plan of work requirements.
Sec. 7603. Multistate and integration funding.
Sec. 7604. Expanded food and nutrition education program.
Sec. 7605. Grants to 1890 schools to expand extension capacity.
Sec. 7606. Borlaug international agricultural science and technology
fellowship program.
Sec. 7607. Cost Recovery.
Sec. 7608. Organic Food and Agricultural Systems Funding.
Subtitle A--General Provisions
SEC. 7101. DEFINITIONS.
For purposes of this title:
(1) Capacity program.--The term ``capacity program'' means
the capacity program in subparagraph (M) and each of the
following agricultural research, extension, education, and
related programs for which the Secretary has administrative or
other authority as of the day before the date of enactment of
this Act:
(A) Each program providing funding to any of the
1994 institutions under sections 533, 534(a), and 535
of the Equity in Educational Land-Grant Status Act of
1994 (Public Law 103-382; 7 U.S.C. 301 note) (commonly
known as financial assistance, technical assistance,
and endowments to tribal colleges and the Navajo
Community College).
(B) The program established under section 536 of
the Equity in Educational Land-Grant Status Act of 1994
(Public Law 103-382; 7 U.S.C. 301 note) providing
research grants for 1994 institutions.
(C) Each program established under subsections (b),
(c), and (d) of section 3 of the Smith-Lever Act (7
U.S.C. 343).
(D) Each program established under the Hatch Act of
1887 (7 U.S.C. 361a et seq.).
(E) Each program established under section
1417(b)(4) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3152(b)(4)), including grant programs under that
section (commonly known as the 1890 Institution
Teaching and Research Capacity Building Grants
Program).
(F) The animal health and disease research program
established under subtitle E of the National
Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3191 et seq.).
(G) The program established under section 1445 of
the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3222) (commonly
known as the Evans-Allen Program).
(H) 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).
(I) 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).
(J) 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).
(K) 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.).
(L) Each program established under the Renewable
Resources Extension Act of 1978 (16 U.S.C. 1671 et
seq.).
(M) The capacity building grant program for ASCARR
Institutions established under this Act.
(N) Such other programs or parts of programs as
determined appropriate by the Secretary.
(O) The program providing competitive extension
grants to eligible 1994 institutions under section
3(b)(3) of the Smith-Lever Act (7 U.S.C. 343(b)(3)).
(2) Competitive programs.--The term ``competitive
programs'' means the competitive program in subparagraph (N)
and each of the following agricultural research, extension,
education, and related programs for which the Secretary has
administrative or other authority as of the day before the date
of enactment of this Act:
(A) Competitive grant programs authorized or
otherwise administered by the Department of Agriculture
under the terms of section 2(b) of the Competitive,
Special and Facilities Research Grant (7 U.S.C. 450i).
(B) Institution Challenge Grants, administered
under 1417(j) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977, as amended
(7 U.S.C. 3152(j)).
(C) Grants and related authorities authorized or
otherwise administered by the Secretary of Agriculture
under section 1417(b)(5) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977,
as amended (7 U.S.C. 3152(b)(5)) (commonly known as the
Higher Education Multicultural Scholars Program).
(D) Programs authorized or otherwise administered
under section 1455 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3241(e)) (commonly known as educational grant
programs for Hispanic-serving institutions).
(E) Integrated research, education, or extension
programs authorized under section 406 of the
Agricultural Research, Extension, and Education Reform
Act of 1998 (7 U.S.C. 7626).
(F) Sustainable Agriculture Research and Education
(7 U.S.C. 5811).
(G) Organic Research and Extension Initiative (7
U.S.C. 5925b).
(H) Higher Education Challenge Grants (7 U.S.C.
3152(b)(1)).
(I) Food and Agriculture Sciences National Needs
Graduate and Postgraduate Fellowship Grants (7 U.S.C.
3152(b)(6)).
(J) International Science and Education Competitive
Grants (7 U.S.C. 3292b).
(K) Community Food Projects Competitive Grants (7
U.S.C. 2034).
(L) Risk Management Education (7 U.S.C. 1524).
(M) High Priority Research and Extension Areas (7
U.S.C. 5925).
(N) Such other programs or parts of programs as
determined appropriate by the Secretary.
(3) Capacity program critical base funding.--The term
``capacity program critical base funding'' means the aggregate
amount of Federal funds made available for all or individual
capacity programs for fiscal year 2007, as appropriate.
(4) Competitive program critical base funding.--The term
``competitive program critical base funding'' means the
aggregate amount of Federal funds made available for all or
individual competitive programs for fiscal year 2007, as
appropriate.
(5) ASCARR institution.--
(A) In general.--The term ``ASCARR Institution''
means a public college or university offering a
baccalaureate or higher degree in the study of
agriculture.
(B) Exclusions.--The term ``ASCARR Institution''
does not include Hispanic-serving agricultural colleges
and universities or 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.); or
(iii) the Equity in Educational Land-Grant
Status Act of 1994 (Public Law 103-382; 7
U.S.C. 301 note).
(6) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(7) Directors.--The term ``Directors'' refers to those
directors appointed under section 7104.
(8) Under secretary.--The term ``Under Secretary'' means
the Under Secretary of Agriculture for Research, Education, and
Economics.
(9) Hispanic-serving agricultural college and university.--
The term ``Hispanic-serving agricultural college and
university'' means a college or university that--
(A) qualifies as an ``Hispanic-serving
institution''; and
(B) offers associate, bachelor's, or other
accredited degree programs in agricultural related
fields, as determined by the Secretary.
SEC. 7102. BUDGET SUBMISSION AND FUNDING.
(a) 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 capacity programs, and a single budget line item
reflecting the total amount requested by the President for funding for
competitive programs for that fiscal year and for the previous 5 fiscal
years.
(b) Capacity Program Request.--
(1) Critical base funding.--Up to the amount of the
capacity program critical base funding level, any funds
requested for capacity programs in the budget submission single
line item shall be apportioned among the capacity programs
based on priorities established by the Under Secretary in
conjunction with the Directors.
(2) Additional funding.--Of the funds requested for
capacity programs in excess of the capacity program critical
base funding level, budgetary emphasis should be placed on
enhancing funding for the 1890, 1994, ASCARR Institutions,
Hispanic-serving agricultural colleges, and small 1862
institutions.
(c) Competitive Program Request.--
(1) Critical base funding.--Up to the amount of the
competitive program critical base funding level, any funds
requested for competitive programs in the budget submission
single line item shall be apportioned among the competitive
programs based on priorities established by the Under Secretary
in conjunction with the Directors.
(2) Additional funding.--Of the funds requested for
competitive programs in excess of the competitive program
critical base funding level, budgetary emphasis shall be placed
on enhancing funding for emerging problems and their solutions.
(d) Funding.--
(1) Critical base funding.--Up to the total aggregate
amount of the capacity program critical base funding level and
the competitive program critical base funding level, funds
appropriated or otherwise made available shall be apportioned
among each of the capacity programs and the competitive
programs based on priorities established by the Under Secretary
in conjunction with the Directors.
(2) Additional funding.--
(A) Capacity funding.--Of the funds appropriated or
otherwise made available for capacity programs in
excess of the capacity program critical base funding
level, funding emphasis should be placed on enhancing
funding for the 1890, 1994, ASCARR Institutions,
Hispanic-serving agricultural colleges, and small 1862
institutions.
(B) Competitive funding.--Of the funds appropriated
or otherwise made available for competitive programs in
excess of the competitive program critical base funding
level, budgetary emphasis shall be placed on enhancing
funding for emerging problems and solutions.
(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as necessary to carry out this section.
(f) Competitive Programs.--For the purposes of this section, the
term ``competitive programs'' includes only those programs for which
annual appropriations are requested in the President's budget.
SEC. 7103. ADDITIONAL PURPOSES OF AGRICULTURAL RESEARCH AND EXTENSION.
Section 1403 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3102) is amended--
(1) in paragraph (6), by striking ``and'' at the end;
(2) in paragraph (7), by striking the period and inserting
a semicolon; and
(3) by adding after paragraph (7) the following:
``(8) to integrate and organize the administration of the
agricultural research, extension, education, and related
programs administered by the Secretary of Agriculture to
respond to 21st century challenges and continue to meet the
needs of society from a local, tribal, State, national, and
international perspective;
``(9) to minimize duplication, and maximize coordination
and integration, among all of the programs at all levels
through a solution-based approach; and
``(10) to position the agricultural research, extension,
education, and related programs system to increase the
contribution of the system to society through the expansion of
the portfolio of the system.''.
SEC. 7104. NATIONAL AGRICULTURAL RESEARCH PROGRAM OFFICE.
(a) Establishment.--The Under Secretary shall organize within the
office of the Under Secretary 6 research Program Offices to be known
collectively as the National Agricultural Research Program Office,
which shall coordinate the programs and activities of the research
agencies within the mission area in an integrated, multidisciplinary,
interdisciplinary, interagency, and interinstitutional manner, to the
maximum extent practicable. The Program Offices within the National
Agricultural Research Program Office are as follows:
(1) Renewable energy, natural resources, and environment.
(2) Food safety, nutrition, and health.
(3) Plant health and production.
(4) Animal health and production and animal products.
(5) Agriculture systems and technology.
(6) Agriculture economics and rural communities.
(b) Qualifications of Directors.--
(1) Appointment and classification.--The Under Secretary
shall appoint a Director for each Program Office as a senior
level position in the competitive service.
(2) Qualifications.--To be eligible for appointment as a
Director, an individual shall have--
(A) conducted outstanding research, education, or
extension in the field of agriculture or forestry;
(B) earned a doctoral level degree at an
institution of higher education (as defined in section
101 of Public Law 89-329 (20 U.S.C. 1001)); and
(C) met qualification standards prescribed by the
Director of the Office of Personnel Management for
appointment to a senior level position of the
competitive service.
(c) Duties of Directors.--Except as otherwise provided in this Act,
each Director as appointed by the Secretary shall--
(1) formulate programs in consultation with the National
Agricultural Research, Extension, Education, and Economics
Advisory Board (7 U.S.C. 3123) (hereinafter referred to as the
``Board'');
(2) assess strategic workforce needs of research,
education, extension, and other fields;
(3) cooperate with the Board to plan programs that assist
in meeting the future personnel needs of disciplines and
programs;
(4) develop strategic planning for department-wide
research, education, extension, and related activities;
(5) establish department-wide priorities for research,
education, extension, and related programs;
(6) communicate with research, education, and extension
beneficiaries to identify their needs; and
(7) perform such other duties deemed necessary by the
Secretary.
(d) Administration.--The Under Secretary, in conjunction with the
Directors and in consultation with the Board, shall direct and
coordinate research, education, and extension programs within the
relevant agencies of the Department of Agriculture to focus those
programs, and the participants, grantees, and other beneficiaries of
those programs, on--
(1) understanding important problem areas and opportunities
relating to a program;
(2) discovering and implementing solutions to address those
problem areas;
(3) exploring other opportunities provided under the
programs; and
(4) national, regional and local priorities.
(e) Program Integration and Coordination.--
(1) In general.--In accordance with applicable law
(including regulations), the Under Secretary, in coordination
with the Director of each Program Office and taking into
consideration the advice of the Board, shall ensure, to the
maximum extent practicable, that the research, education, and
extension programs are administered, funded, and carried out--
(A) in an integrated, multidisciplinary,
interdisciplinary, interagency, and interinstitutional
manner that ensures--
(i) the most efficient collaborative use of
resources; and
(ii) the focus of all resources and
activities on strategic, priority, problem,
opportunity, and solution areas identified by
the Under Secretary and the Directors, taking
into consideration the advice of the Board; and
(B) among applicable participants, grantees, and
beneficiaries, in a coordinated manner that encourages
and ensures--
(i) the most efficient collaborative
application of resources; and
(ii) the focus of all resources and
activities on strategic, priority, problem,
opportunity, and solution areas on a local,
State, tribal, regional, national, and
international basis, as the Under Secretary and
each Director, taking into consideration the
advice of the Board, determine to be
appropriate.
(2) Scope.--Each Director, in consultation with the Under
Secretary and the Board, shall ensure, through the integration
and coordination under paragraph (1), that opportunities are
maximized with respect to--
(A) the use of appropriate authorities, agencies,
institutions, disciplines, and activities; and
(B) the inclusion of appropriate participants and
other beneficiaries in those activities, including
intramural, extramural, Government, university,
extension, and international, as determined by the
Under Secretary.
(f) Funding.--The Under Secretary shall fund each Program Office
through the appropriations available to the various agencies within the
mission area. The aggregate staff for all Program Offices shall not
exceed 30 full-time equivalent positions and shall be filled by current
full-time equivalent positions.
(g) Organization.--The Under Secretary shall integrate leadership
functions of the national program staff of the research agencies into
the National Agricultural Research Program Office in such form as
required to ensure that the Directors of the Program Offices are the
primary program leaders for the mission areas of the integrated
agencies and that administrative duplication does not occur.
(h) Prioritizing Federal Research Activities for Specialty Crops.--
The Under Secretary, in coordination with the Directors of relevant
Program Offices, shall--
(1) coordinate with and assist producers and organizations
comprised of program beneficiaries working together to develop
and implement applied research and extension related to the
United States specialty crop industry;
(2) facilitate in the delivery of information to
beneficiaries in a user-friendly form, in addition to a
standard research publication, and reward providers for their
abilities to deliver information to both the scientific
community and the end-user; and
(3) ensure coordination among research initiatives funded
and sponsored by the Department of Agriculture.
SEC. 7105. ESTABLISHMENT OF COMPETITIVE GRANT PROGRAMS UNDER THE
NATIONAL INSTITUTE FOR FOOD AND AGRICULTURE.
Any office established to administer competitive programs under
section 7101(b)(2), including the Agricultural Bioenergy and Biobased
Products Research Initiative, the Specialty Crop Research Initiative,
and Fresh Cut Produce Safety Grants created by this Act, shall be
referred to as the National Institute of Food and Agriculture.
SEC. 7106. MERGING OF IFAFS AND NRI.
(a) Amendment.--Subsection (b) of the Competitive, Special, and
Facilities Research Grant Act (7 U.S.C. 450i(b)) is amended to read as
follows:
``(b) Competitive Grant Programs.--
``(1) Competitive basis.--The Secretary of Agriculture is
authorized to make competitive grants for the purposes and
priorities established under this subsection.
``(2) Term.--The term of a competitive grant made under
this subsection may not exceed 10 years.
``(3) 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 to advancing the purposes and priorities
established under paragraphs (7) and (11) of this
subsection;
``(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 scientists in the Federal Government,
colleges and universities, State agricultural
experiment stations, and the private sector.
``(4) Eligible entities.--The Secretary may make a grant
under this subsection to State agricultural experiment
stations, all colleges and universities, university research
foundations, other research institutions and organizations,
Federal agencies, national laboratories, private organizations
or corporations, and individuals, for research to further the
programs of the Department of Agriculture.
``(5) Administrative costs.--Not more than 4 percent of
funds made available pursuant to this subsection may be
retained by the Secretary to pay administrative costs incurred
by the Secretary in carrying out this subsection.
``(6) 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).
``(7) Purposes.--The purposes of the programs established
under paragraph (8) shall reflect the purposes and additional
purposes of agricultural research, extension, and education
reflected in sections 1402 and 1403 of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3101 and 3102).
``(8) Basic and applied research programs.--The Secretary
shall establish 2 distinct programs of agricultural research,
one to fund fundamental, basic research pursuant to paragraph
(9) to be known as the National Research Initiative and one to
fund applied, integrated research, education, and extension
pursuant to paragraph (10) to be known as the Initiative for
Future Agricultural and Food Systems.
``(9) National research initiative.--
``(A) Allocation.--The allocation of funds to the
National Research Initiative shall be as follows:
``(i) Not less than 30 percent shall be
available to make grants for research to be
conducted by multidisciplinary teams.
``(ii) Not less than 20 percent shall be
available to make grants for research to be
conducted by persons conducting mission-linked
systems research.
``(iii) Not less than 10 percent shall be
available to make grants under subparagraphs
(D), (F), and (G) of paragraph (13) for
research and education strengthening and
research opportunity.
``(iv) Not more than 2 percent may be used
for equipment grants under paragraph (13)(D).
``(B) Matching funds.--Except as provided in this
subparagraph, the Secretary may not take the offer or
availability of matching funds into consideration in
making a grant under this subsection. In the case of
grants under paragraph (13)(D), the amount provided
under this subsection may not exceed 50 percent of the
cost of the special research equipment or other
equipment acquired. The Secretary may waive all or part
of the matching requirement under this subparagraph in
the case of a college, university, or research
foundation maintained by a college or university that
ranks in the lowest one-third of such colleges,
universities, and research foundations on the basis of
Federal research funds received if the equipment to be
acquired costs not more than $25,000 and has multiple
uses within a single research project or is usable in
more than 1 research project.
``(10) Initiative for future agricultural and food systems
matching funds.--As a condition of making a grant under this
paragraph, the Secretary shall require the funding of the grant
be matched with equal matching funds from a non-Federal source
if the grant is--
``(A) for applied research that is commodity-
specific; and
``(B) not of national scope.
``(11) Research priorities.--The research priorities for
the programs established in paragraph (8) shall be consistent
with the priorities in effect for the National Research
Initiative (7 U.S.C. 450i(b)) and Initiative for Future
Agricultural and Food Systems (7 U.S.C. 7621) on the day before
the date of enactment of this subsection. Priorities under the
Initiative for Future Agricultural and Food Systems shall
include classical plant and animal breeding.
``(12) Program administration.--To the greatest extent
possible, the Under Secretary for Research, Education, and
Economics, in conjunction with the Directors of the National
Agricultural Research Program Offices established in section
7104 of the Farm, Nutrition, and Bioenergy Act of 2007, shall
allocate these grants 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).
``(13) Special considerations.--In addition to making
research grants under paragraph (9), the Secretary may conduct
a program to improve research capabilities in the agricultural,
food, and environmental sciences and award the following
categories of competitive grants. Grants may be awarded--
``(A) to a single investigator or coinvestigators
within the same discipline;
``(B) to teams of researchers from different areas
of agricultural research and scientific disciplines;
``(C) to multidisciplinary teams that are proposing
research on long-term applied research problems, with
technology transfer a major component of all such grant
proposals;
``(D) 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; however 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;
``(E) to a single investigator or coinvestigators
who are beginning their research careers and do not
have an extensive research publication record; however,
to be eligible for a grant under this subparagraph, an
individual shall be within 5 years of the individual's
initial career track position;
``(F) to ensure that the faculty of small and mid-
sized institutions who have not previously been
successful in obtaining competitive grants under this
subsection receive a portion of the grants; and
``(G) to improve research capabilities in States
(as defined in the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3101 et seq.)) in which institutions have been less
successful in receiving funding under this subsection,
based on a 3-year rolling average of funding levels.
``(14) Division of funds.--Of the funds made available to
carry out this subsection, 60 percent shall be used to fund
programs under paragraph (9) and 40 percent shall be used to
fund programs under paragraph (10).
``(15) Transfer of funds from the initiative for future
agriculture and food systems.--Funds made available pursuant to
section 401(b)(3)(D) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7621 (b)(3)(D))
shall be transferred to the program established under this
subsection.
``(16) Authorization of appropriations.--
``(A) There is authorized to be appropriated to
carry out this subsection $500,000,000 for each of
fiscal years 2008 through 2012.
``(B) Funds made available in each fiscal year
shall remain available until expended to pay for
obligations incurred in that fiscal year.''.
(b) Repeals.--The following provisions are hereby repealed:
(1) Section 401 of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7621), except that
section 401(b)(3) of such Act shall not be repealed and shall
remain in effect.
(2) Subsection (2)(d) of the Competitive, Special, and
Facilities Research Grant Act of 1965 (7 U.S.C. 450i(d)).
SEC. 7107. CAPACITY BUILDING GRANTS FOR ASCARR INSTITUTIONS.
(a) Grant Program.--
(1) In general.--The Secretary shall make competitive
grants to ASCARR Institutions to assist the ASCARR Institutions
in maintaining and expanding the capacity of the ASCARR
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 ASCARR Institution that receives a
grant under subsection (a)(1) may use the funds made available
through the grant to maintain and expand the capacity of the
ASCARR 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 ASCARR
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 fiscal year 2008 through 2012.
SEC. 7108. ESTABLISHMENT OF RESEARCH LABORATORIES FOR ANIMAL DISEASES.
(a) Definitions.--In this section--
(1) Animal disease.--The term ``animal disease'' has the
meaning given the term by the Secretary.
(2) Import.--The term ``import'' means to move from a place
outside the territorial limits of the United States to a place
within the territorial limits of the United States.
(3) Live virus.--The term ``live virus'' means a live virus
of foot-and-mouth disease or a live virus of any other animal
disease that is a threat to the health of livestock, as
determined by the Secretary.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(5) State.--The term ``State'' means any of the States, the
District of Columbia, the Commonwealth of Puerto Rico, Guam,
the Commonwealth of the Northern Mariana Islands, the Virgin
Islands of the United States, or any territory or possession of
the United States.
(6) United states.--The term ``United States'' means all of
the States.
(b) Animal Disease Research.--
(1) Establishment of research facilities.--The Secretary is
authorized to establish research laboratories, including the
acquisition of necessary land, buildings, or facilities, for
research on animal diseases in the United States.
(2) Activities authorized when disease threatens
livestock.--To the extent the Secretary determines that an
animal disease constitutes a threat to the livestock industry,
the Secretary is authorized to conduct research, diagnostics,
and other activities related to the animal disease.
(c) Restrictions Regarding Live Virus.--
(1) In general.--Except as provided in paragraphs (2), (3),
and (4), a person or State or Federal agency may not--
(A) import a live virus into the United States;
(B) transport a live virus within the United
States; and
(C) store and maintain a live virus at a research
facility.
(2) Authority of the secretary.--The Secretary of
Agriculture may--
(A) import a live virus into the United States;
(B) transport a live virus within the United
States; and
(C) store and maintain a live virus at a research
facility.
(3) Permits.--
(A) In general.--If the Secretary determines that
it is in the public interest to do so, the Secretary
may issue a permit to allow a private person or a State
or Federal agency to--
(i) import a live virus into the United
States;
(ii) transport a live virus within the
United States; and
(iii) store and maintain a live virus at a
research facility.
(B) Permit terms.--A permit issued under this
paragraph shall be subject to terms and conditions
prescribed by the Secretary.
(4) Limitation.--Nothing in this section shall apply to the
importation, transportation, storage, and maintenance of any
live virus governed by regulations promulgated pursuant to
section 351A of the Public Health Service Act (42 U.S.C. 262a)
or the Agricultural Bioterrorism Protection Act of 2002 (7
U.S.C. 8401).
(d) Authorization of Appropriations.--In addition to funds
otherwise available for the control or eradication of animal diseases,
there are authorized to be appropriated such sums as necessary to carry
out this section.
SEC. 7109. GRAZINGLANDS RESEARCH LABORATORY.
Notwithstanding any other provision of law, without specific
authorization by an Act of Congress, the Federal land and facilities at
El Reno, Oklahoma, currently administered by the Secretary of
Agriculture as the Grazinglands Research Laboratory, shall not at any
time, in whole or 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.
SEC. 7110. RESEARCHER TRAINING.
(a) Requirement.--The Secretary shall require that persons
receiving funds under section 1668(g)(2) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5921(g)(2)) to conduct
research concerning genetically engineered plants, including seed and
other propagative materials, complete a training program approved by
the Secretary.
(b) Certification of Third-Party Providers.--Not later than 180
days after the date of the enactment of this Act, the Secretary shall
establish a system for approving individuals and entities to provide
training under subsection (a), including criteria for the evaluation of
trainers or potential trainers.
(c) Expertise.--In establishing criteria for the evaluation of
potential trainers, the Secretary shall ensure that individuals and
entities with expertise in quality management systems, plant breeding
and genetics, and the technical aspects of the Federal regulatory
process for agricultural biotechnology, are eligible to become approved
trainers under subsection (b).
SEC. 7111. FORT RENO SCIENCE PARK RESEARCH FACILITY.
The Secretary of Agriculture 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. 7112. ASSESSING THE NUTRITIONAL COMPOSITION OF BEEF PRODUCTS.
(a) Study.--Not later than 1 year after the date of the enactment
of this Act, the Secretary shall award a grant, contract, or other
agreement with an appropriate land-grant university to update the
Department of Agriculture's Nutrient Composition Handbook for Beef,
also known as Handbook #8-13. The Handbook shall incorporate accurate
and current data collected by the university to be used by Federal
agencies, private industries, health organizations, and consumers to
determine important diet and health-related issues associated with the
consumption of beef and beef products.
(b) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section to be
available until expended.
SEC. 7113. SENSE OF CONGRESS REGARDING FUNDING FOR HUMAN NUTRITION
RESEARCH.
It is the sense of the Congress that--
(1) human nutrition research has the potential for
improving the health status of the American public through
studies that help determine--
(A) the food and beverage intakes of Americans and
the nutrient composition of the food supply;
(B) the relationship between diet and obesity,
particularly to prevent childhood obesity;
(C) the authoritative, peer-reviewed, science-based
evidence that forms the basis for Federal nutrition
policy, dietary guidelines and programs; and
(D) the nutrient requirements for individuals at
various stages in the lifespan and for vulnerable
populations, particularly children and the elderly;
(2) human nutrition research holds the potential for
identifying factors in crops and livestock that provide
nutrition benefits to humans and add value for producers;
(3) the potential cost savings to Federal health programs,
combined with the boost in revenues for farmers who produce
nutritionally enhanced foods, justifies an increase in funding
to a level sufficient to conduct this essential research; and
(4) the USDA regional human nutritional research centers
have unique value in linking producer and consumer interests
into investigations of food and human nutrition issues and
conducting long-term nutrition studies; and activities at these
centers should be preserved and coordinated with other human
nutrition research activities.
Subtitle B--National Agricultural Research, Extension, and Teaching
Policy Act of 1977
SEC. 7201. ADVISORY BOARD.
Section 1408(g)(1) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123(g)(1)) is
amended by striking ``$350,000'' and inserting ``$500,000''.
SEC. 7202. ADVISORY BOARD TERMINATION.
Section 1408(h) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3123(h)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7203. RENEWABLE ENERGY COMMITTEE.
The National Agricultural Research, Extension, and Teaching Policy
Act of 1977 is amended by inserting after section 1408A the following:
``SEC. 1408B. RENEWABLE ENERGY COMMITTEE.
``(a) Initial Members.--Not later than 90 days after the date of
the enactment of this section, the executive committee of the Advisory
Board shall establish and appoint the initial members of a permanent
renewable energy committee that shall be responsible for studying the
scope and effectiveness of research, extension, and economics programs
affecting the renewable energy industry.
``(b) Non-Advisory Board Members.--Individuals who are not members
of the Advisory Board may be appointed as members of the renewable
energy committee. Members of the renewable energy committee shall serve
at the discretion of the executive committee.
``(c) Report by Renewable Energy Committee.--Not later than 180
days after the establishment of the renewable energy committee, and
annually thereafter, the renewable energy committee shall submit to the
Advisory Board a report containing the findings of its study under
subsection (a). The renewable energy committee shall include in each
report its recommendations.
``(d) Coordination of Functions.--In carrying out its functions,
the Renewable Energy Committee shall coordinate with the Biomass
Research and Development Act Committee.
``(e) 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 that are adopted by the Advisory Committee.
``(f) 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 describing how the Secretary
addressed each recommendation of the renewable energy committee
described in subsection (e) of this section.''.
SEC. 7204. 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 the specialty crop sector, including the
impact of changes in domestic and international markets,
production and new product technologies, alternative policies
and macroeconomic conditions on specialty crop production, use,
farm and retail prices, and farm income and financial stability
from a national, regional, and farm-level perspective.
``(5) Review of the economic state of the specialty crop
industry from a regional perspective.
``(6) Development of data that provides applied information
useful to specialty crop growers, their associations, and other
interested beneficiaries in evaluating that industry from a
regional and national perspective.''.
SEC. 7205. INCLUSION OF UDC IN 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 subsection (b), by inserting ``including the
University of the District of Columbia,'' after
``universities,''; and
(2) in subsection (d)(2), by inserting ``, including the
University of the District of Columbia,'' after
``universities''.
SEC. 7206. 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) Authorization of Appropriations.--Section 1417(l) of the
National Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3152(l)) is amended by striking ``2007'' and inserting
``2012''.
(c) Report.--Section 1417 of the National Agricultural Research,
Extension and Teaching Policy Act of 1977 is amended by adding at the
end the following:
``(m) Report.--The Secretary shall submit an annual report to the
Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition and Forestry of the Senate
detailing the distribution of funds used to implement the teaching
programs under subsection (j).''.
SEC. 7207. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF ALCOHOLS
AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL COMMODITIES
AND FOREST PRODUCTS.
Section 1419(d) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7208. POLICY RESEARCH CENTERS.
Section 1419A of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3155) is amended--
(1) in subsection (b), by inserting ``, including the Food
Agricultural Policy Research Institute and the Agricultural and
Food Policy Center'' after ``research institutions and
organizations''; and
(2) in subsection (d), by striking ``2007'' and inserting
``2012''.
SEC. 7209. 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. 7210. 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. 7211. NUTRITION EDUCATION PROGRAM.
Section 1425(c)(3) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175(c)(3)) is
amended by striking ``2007'' and inserting ``2012''.
SEC. 7212. 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. 7213. COOPERATION AMONG ELIGIBLE INSTITUTIONS.
Section 1433 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 is amended by adding at the end the
following new subsection:
``(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. 7214. 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. 7215. AUTHORIZATION LEVEL OF 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. 7216. 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. 7217. 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 (7 U.S.C. 3101 et seq.) is amended by inserting after
section 1447 the following:
``SEC. 1447A. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES
FACILITIES AT THE DISTRICT OF COLUMBIA LAND GRANT
UNIVERSITY.
``(a) Purpose.--It is declared to be the intent of Congress to
assist the land grant university in the District of Columbia, as
established under section 208 of the District of Columbia Public
Postsecondary Education Reorganization Act of October 26, 1974 (Public
Law 93-471) 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 for the purposes of carrying out the provisions of this
section $750,000 for each of fiscal years 2008 through 2012.''.
SEC. 7218. 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. 7219. 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. 7220. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND EXTENSION
ACTIVITIES OF 1890 INSTITUTIONS.
Section 1449(c) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3222d(c)) is amended in the
first sentence by striking ``for each of fiscal years 2003 through
2007,''.
SEC. 7221. HISPANIC-SERVING INSTITUTIONS.
Section 1455(c) of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7222. 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
the following:
``SEC. 1456. HISPANIC-SERVING AGRICULTURAL COLLEGES AND UNIVERSITIES.
``(a) Definitions.--As used in this section:
``(1) Endowment fund.--The term `endowment fund' means the
Hispanic-Serving Agricultural Colleges and Universities Fund
established under subsection (b).
``(2) Hispanic-serving agricultural college and
universities.--The term `Hispanic-serving agricultural colleges
and universities' means a college or university that--
``(A) qualifies as a `Hispanic-serving
institution'; and
``(B) offers associate, bachelor's, or other
accredited degree programs in agriculture-related
fields, as determined by the Secretary.
``(b) Endowment.--
``(1) In general.--In accordance with this subsection, the
Secretary of the Treasury shall establish a Hispanic-Serving
Agricultural Colleges and Universities Fund. The Secretary of
the Treasury may enter into such agreements as are necessary to
carry out this subsection.
``(2) 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.
``(3) Investments.--The Secretary of the Treasury shall
invest the endowment fund corpus and income in interest-bearing
obligations of the United States.
``(4) Withdrawals and expenditures.--The Secretary of the
Treasury may not make a withdrawal or expenditure from the
endowment fund corpus. 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 who,
after making adjustments for the cost of administering the
endowment fund, shall distribute the adjusted income as
follows:
``(A) 60 percent distributed among the Hispanic-
serving agricultural colleges and universities on a pro
rata basis based on each institution's Hispanic
enrollment count.
``(B) 40 percent distributed in equal shares to the
Hispanic-serving agricultural colleges and
universities.
``(5) Authorization of appropriations.--
``(A) In general.--For fiscal year 2008, and for
each fiscal year thereafter, there is authorized to be
appropriated to the Department of Agriculture an amount
equal to--
``(i) $80,000; multiplied by
``(ii) the number of Hispanic-serving
agricultural colleges and universities.
``(B) Payments.--For fiscal year 2008, and for each
fiscal year thereafter, the Secretary shall pay to the
treasurer of each Hispanic-Serving agricultural college
and university an amount equal to--
``(i) the total amount made available by
appropriations pursuant to paragraph (1);
divided by
``(ii) the number of Hispanic-serving
agricultural colleges and universities.
``(C) Use of funds.--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), and except as otherwise provided in this
subsection, the requirements of such Act shall apply to
the Hispanic-serving agricultural colleges and
universities.
``(D) Amounts appropriated pursuant to this
paragraph shall be held and considered to have been
granted to Hispanic-serving agricultural colleges and
universities to establish an endowment pursuant to
subsection (b).
``(c) Institutional Capacity Building Grants.--
``(1) Purpose and allowable uses.--For fiscal year 2008,
and for each fiscal year thereafter, the Secretary shall make
institutional capacity building grants to assist Hispanic-
serving agricultural colleges and universities 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 in such form and
manner as the Secretary may prescribe.
``(B) Broader participation and geographic
diversity.--All Hispanic-serving agricultural colleges
and universities shall be eligible to compete for
grants under this subsection.
``(C) Demonstration of need.--The Secretary shall
require as part of an application for a grant under
this subsection, a demonstration of need based on
criteria stated in subsection (b)(5). 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.
``(D) 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 specified by the Secretary and based upon
assessed institutional needs.
``(3) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary to carry out
this subsection, such sums as are necessary for fiscal year
2008, and for each fiscal year thereafter.
``(d) Competitive Grants Program.--The Secretary shall establish a
competitive grants program to fund basic and applied research at
Hispanic-serving agricultural colleges and universities in agriculture,
human nutrition, food science, bioenergy, and environmental science.
There are authorized to be appropriated to the Secretary such sums as
are necessary to carry out this subsection for fiscal year 2008 and for
each fiscal year thereafter.''.
(b) Extension Funding.--Section 3 of the Act of May 8, 1914,
(commonly known as the Smith-Lever Act), is amended--
(1) in subsection (b), by adding at the end the following
new paragraph:
``(4) There are authorized to be appropriated for fiscal year 2008,
and for each fiscal year thereafter, such sums as are necessary for the
purposes set forth in subparagraph (D). Such sums shall be in addition
to the sums appropriated for the several States and Puerto Rico, the
Virgin Islands, and Guam under the provisions of this section. Such
sums shall be distributed on the basis on a competitive application
process to be developed and implemented by the Secretary and paid by
the Secretary to the State institutions established in accordance with
the provisions of the Act of July 2, 1862 (commonly known as the First
Morrill Act) and administered by such institutions through cooperative
agreements with the Hispanic-serving agricultural colleges and
universities in the States of the institutions in accordance with
regulations that the Secretary shall adopt.''; and
(2) in subsection (f), by inserting ``or Hispanic-serving
agricultural colleges and universities'' after ``Institution''.
SEC. 7223. 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 memorandums of understanding, agreements, or
other formal ties to United States institutions, or
State or Federal agencies;'';
(2) in paragraph (3), by inserting ``Hispanic-serving
agricultural colleges and universities,'' after ``universities,
as defined in section 1456 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3289),'';
(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, as defined in section 1456 of the
National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3289)'';
(4) in paragraph (9)(A), by striking ``or other colleges
and universities'' and inserting ``, or other colleges and
universities, or Hispanic-serving agricultural colleges and
universities, as defined in section 1456 of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3289)''; and
(5) 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. 7224. 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. 7225. 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 by
striking ``a competitive'' and inserting ``any''.
SEC. 7226. 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. 7227. 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. 7228. 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. 7229. 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. 7230. 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. 7231. RANGELAND RESEARCH.
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. 7232. 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. 7233. RESIDENT INSTRUCTION AND DISTANCE EDUCATION GRANTS PROGRAM
FOR INSULAR AREA INSTITUTIONS OF HIGHER EDUCATION.
(a) Distance Education Grants for Insular Areas.--Section 1490(f)
of the National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3362(f)) is amended by striking ``2007'' and
inserting ``2012''.
(b) Resident Instruction Grants for Insular Areas.--Section 1491 of
the National Agricultural Research, Extension, and Teaching Policy Act
of 1977 (7 U.S.C. 3363) is amended--
(1) by redesignating subsection (e) as subsection (c); and
(2) in subsection (c) (as so redesignated), by striking
``2007'' and inserting ``2012''.
SEC. 7234. HISPANIC SERVING INSTITUTIONS.
The text of section 1404 of the Research Act of 1977 is amended to
read as follows: ``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).''.
SEC. 7235. SPECIALTY CROPS POLICY RESEARCH INSTITUTE.
Section 1419A of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3155) is amended by adding at the
end the following:
``(e) Specialty Crops Policy Research Institute.--
``(1) Establishment.--The Food Agricultural Policy Research
Institute shall establish a satellite institute, called the
Specialty Crops Policy Research Institute, hereinafter referred
to as the Institute, at accredited research universities within
States with significant specialty crop industries to fulfill
the objectives described in subsection (e)(3) of this section.
``(2) Management.--The Institute shall be coordinated and
managed by an appointed university and will have the discretion
to coordinate and facilitate the Institute's economic and
policy research activities and those of additional member
universities and institutions.
``(3) Institute objectives.--Consistent with the provisions
of subsections (a) and (c) of this section, the Institute
shall--
``(A) produce and disseminate analysis of the
specialty crop sector, including the impact of changes
in domestic and international markets, production, new
product technologies, web-based risk management tools,
alternative policies and macroeconomic conditions on
specialty crop production, use, farm and retail prices,
and farm income and financial stability from a
national, regional, and farm-level perspective; and
``(B) produce and disseminate an annual review of
the economic state of the specialty crop industry
nationally, regionally, and by-state.
``(4) Authorization of appropriation.--There are authorized
to be appropriated such sums as are necessary in each fiscal
year through 2012 to carry out this section.''.
SEC. 7236. 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 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. 7237. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES FACILITIES
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 the following:
``SEC. 1447B. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES
FACILITIES AND EQUIPMENT AT INSULAR AREA LAND-GRANT
INSTITUTIONS.
``(a) Purpose.--It is declared to be 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) Authorization of Appropriations.--There are authorized to be
appropriated for the purposes of carrying out the provisions of this
section $8,000,000 for each of fiscal years 2008 through 2012.
``(c) 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 shall determine necessary for carrying out
the purposes of this section.
``(d) Regulations.--The Secretary may promulgate such rules and
regulations as the Secretary may consider necessary to carry out the
provisions of this section.''.
Subtitle C--Food, Agriculture, Conservation, and Trade Act of 1990
SEC. 7301. 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. 7302. 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. 7303. 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. 7304. AFLATOXIN RESEARCH AND EXTENSION.
Section 1672(e)(3) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5925(e)(3)) is amended 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.''.
SEC. 7305. HIGH-PRIORITY RESEARCH AND EXTENSION AREAS.
Section 1672(e) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5925(e)) is amended by adding the following:
``(46) Farmed and wild cervid disease and applied genetics
research.--Research grants may be made under this section for
the purpose of investigating the major infectious, parasitic
and toxic diseases of importance to farmed and wild cervids.
``(47) 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.
``(48) Swine genome project.--Research grants may be made
under this section to conduct swine genome research and to map
the swine genome.
``(49) Cattle fever tick program.--Research and extension
grants may be made 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 related to cattle fever ticks that are associated with
wildlife, livestock, and human health.
``(50) Colony collapse disorder program.--Research and
extension grants may be made to survey and collect data of
honey bee colony production and health; research various
factors possibly contributing to or associated with colony
collapse disorder; and develop mitigative and preventative
measures to improve bee health.
``(51) Synthetic gypsum from electric power plants
research.--Research and extension grants may be made to study
the uses of synthetic gypsum from electric power plants to
remediate soil and nutrient losses.
``(52) Cranberry research program.--Research and extension
grants may be made to study new technologies to assist
cranberry growers in complying with Federal and State
environmental regulations, increase production, develop new
growing techniques, establish more efficient growing
methodologies, and educate farmers about sustainable growth
practices.
``(53) Sorghum research initiative.--Research and extension
grants may be made to study the use of sorghum as a bioenergy
feedstock, promote diversification in, and the environmental
sustainability of sorghum production, and promote water
conservation through the use of sorghum.
``(54) Bean health research program.--Research and
extension grants may be made to study bean-based solutions to
chronic health and nutritional concerns in both developed and
developing countries, and to increase bean consumption.''.
SEC. 7306. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.
Section 1672(h) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5925(h)) is amended by striking ``2007'' and
inserting ``2012''.
SEC. 7307. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION INITIATIVE.
Section 1672A of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 5925a) is amended--
(1) by redesignating subsection (g) as subsection (f);
(2) in subsection (d), by inserting ``or address unique
regional concerns'' after ``entities'';
(3) in subsection (e)(1)(B), by inserting ``and dairy
cattle waste'' after ``swine waste''; and
(4) in subsection (f) (as so redesignated in paragraph
(1)), by striking ``2007'' and inserting ``2012''.
SEC. 7308. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.
Section 1673(h) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5926(h)) is amended by striking ``2007'' and
inserting ``2012''.
SEC. 7309. 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. 7310. ORGANIC RESEARCH.
(a) In General.--The Organic Agriculture Research and Extension
Initiative (section 1672B of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5925b)) is amended--
(1) in subsection (a)--
(A) in paragraph (5), by striking ``and'' after the
semicolon;
(B) in paragraph (6), at the end by striking the
period 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) Authorization of Appropriations.--There is authorized to be
appropriated $25,000,000 for each of fiscal years 2009 through 2012.
``(g) Additional Funding.--In addition to funds made available
under subsection (f), of the funds of the Commodity Credit Corporation,
the Secretary shall make available to carry out this section a total of
$25,000,000 for fiscal years 2008 through 2012.''.
(b) Coordination.--In carrying out this section, the Secretary
shall ensure that the Director of the applicable Program Office
established under section 7104(a) coordinates projects and activities
carried out under this section to ensure, to the maximum extent
practicable, that duplication of effort is eliminated or minimized.
SEC. 7311. 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''.
SEC. 7312. NEW ERA RURAL TECHNOLOGY PROGRAM.
(a) Functions.--
(1) The Secretary shall establish 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.
This initiative shall support the fields of bioenergy, pulp and
paper manufacturing, and for agriculture-based renewable energy
resources.
(2) To receive funding under this section an entity--
(A) shall be a rural community college or advanced
technological center, in existence on the date of the
enactment of this Act, that participates in
agricultural or bioenergy research and applied
research;
(B) shall 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 of
Agriculture; and
(C) shall have the ability to leverage existing
partnerships and occupational outreach and training
programs for secondary schools, 4-year institutions and
relevant non-profit organizations.
(b) Limitation on Authorization of Appropriations.--To carry out
this section, there are authorized to be appropriated such sums as
necessary for each of the fiscal years 2008 through 2012.
(c) Community Colleges.--In this section, the term ``community
college'' means an institution of higher education--
(1) that admits as regular students persons who are beyond
the age of compulsory school attendance in the State in which
the institution is located and who have the ability to benefit
from the training offered by the institution;
(2) that does not provide an educational program for which
it awards a bachelor's degree, or an equivalent degree; and
(3) that--
(A) provides an educational program of not less
than two years that is acceptable for full credit
toward such a degree; or
(B) offers a two-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.
(d) Grant Priority.--Preference shall be given to rural community
colleges working in partnership to improve information sharing capacity
and to maximize the ability to meet the requirements of this section.
Subtitle D--Agricultural Research, Extension, and Education Reform Act
of 1998
SEC. 7401. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT QUALITY
RESEARCH.
Section 402(g) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7622(g)) is amended by striking
``2007'' and inserting ``2012''.
SEC. 7402. PRECISION AGRICULTURE.
Section 403(i)(1) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7623(i)(1)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7403. 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. 7404. THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICATION.
Section 405(h) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7625(h)) is amended by striking
``2007'' and inserting ``2012''.
SEC. 7405. 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. 7406. FUSARIUM GRAMINEARUM GRANTS.
Section 408 of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7628(e)) is amended--
(1) in the heading for such section, by striking ``grant''
and inserting ``grants''; and
(2) in subsection (e), by striking ``2007'' and inserting
``2012''.
SEC. 7407. 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. 7408. 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 are authorized to redistribute
all or part of the funds received to individual councils or local
chapters within such organization 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. 7409. 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. 7410. AGRICULTURAL BIOENERGY AND BIOBASED PRODUCTS RESEARCH
INITIATIVE.
Title IV of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7621 et seq.) is amended by adding at the
end the following:
``SEC. 412. AGRICULTURAL BIOENERGY AND BIOBASED PRODUCTS RESEARCH
INITIATIVE.
``(a) Definition.--For the purposes of this section, the term
`Initiative' means the agricultural bioenergy and biobased products
research initiative established by subsection (b).
``(b) Establishment.--There is established within the Department a
bioenergy and biobased products research initiative to enhance the
production, sustainability, and conversion of biomass to renewable
fuels and related products.
``(c) Laboratory Network.--
``(1) In general.--The Secretary shall carry out the
Initiative through a bioenergy and biobased product laboratory
network that may consist of--
``(A) Federal agencies;
``(B) national laboratories;
``(C) colleges and universities;
``(D) research institutions and organizations;
``(E) private organizations or corporations;
``(F) State agricultural experiment stations; and
``(G) individuals.
``(2) Research and development objectives.--The laboratory
network shall focus on improving biomass production and
sustainability, and improving biomass conversion in
biorefineries, by--
``(A) leveraging the broad scientific capabilities
of the Department in--
``(i) plant genetics and breeding;
``(ii) crop production;
``(iii) soil and water science;
``(iv) use of agricultural waste;
``(v) carbohydrate, lipid, protein, and
lignin chemistry and biochemistry;
``(vi) enzyme development;
``(vii) fermentation;
``(viii) microbiology;
``(ix) cellulosic gasification; and
``(x) ethanol by-product utilization.
``(B) supporting bioenergy and biobased product
research that will enhance the production,
sustainability, and conversion of biomass to renewable
fuels and related products; and
``(C) supporting bioenergy and biobased product
research, and the dissemination of that research, that
will assist in achieving the goals of this section.
``(d) Coordination.--In carrying out the Initiative, the Secretary
shall ensure that the Director of the applicable Program office
established under section 7104(a)(1) shall coordinate projects and
activities carried out under the Initiative with projects and
activities under the Biomass Research and Development Act of 2000 (7
U.S.C. 8601 et seq) to ensure, to the maximum extent practicable,
that--
``(1) duplication of effort is eliminated or minimized; and
``(2) the respective strengths of the Department and the
Department of Energy are maximized.
``(e) Research Projects.--In carrying out this section, the
Secretary shall award grants on a competitive basis.
``(f) Administration.--
``(1) In general.--For grants awarded under subsection
(e)(2), the Secretary shall--
``(A) seek and accept proposals for grants;
``(B) determine the relevance and merit of
proposals through a system of peer review in accordance
with section 103 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7613); and
``(C) award grants on the basis of merit, quality,
and relevance.
``(2) Term.--A grant under this section shall have a term
that does not exceed 5 years.
``(3) Other conditions.--The Secretary may set such other
conditions on the award of a grant under this section as the
Secretary determines appropriate.
``(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.--There is authorized to be appropriated $50,000,000
for each of fiscal years 2008 through 2012 to carry out this
section.''.
SEC. 7411. 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.), as amended by
section 7410, is further amended by adding at the end the following:
``SEC. 413. SPECIALTY CROP RESEARCH INITIATIVE.
``(a) Definitions.--In this section:
``(1) Initiative.--The term `Initiative' means the
specialty crop research initiative established by subsection
(b).
``(2) Specialty crop.--The term `specialty crop' shall have
the meaning given that term in section 3(1) of the Specialty
Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note).
``(b) Establishment.--There is established within the Department a
specialty crop research 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--
``(A) plant breeding, genetics, and genomics to
improve crop characteristics, such as--
``(i) product appearance;
``(ii) environmental responses and
tolerances;
``(iii) nutrient management;
``(iv) pest and disease management; and
``(v) enhanced phytonutrient content;
``(B) safety;
``(C) quality;
``(D) yield;
``(E) taste;
``(F) shelf life;
``(G) policy and marketing; and
``(H) specialty crop pollination;
``(2) efforts to identify and address threats from invasive
species;
``(3) efforts to improve agricultural production by
developing more technologically efficient and effective
applications of water, nutrients, and pesticides;
``(4) new innovations and technology, such as enhancing
mechanization and reducing reliance on labor; and
``(5) production efficiency, productivity, profitability
and marketing.
``(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; and
``(7) individuals.
``(d) Research Projects.--In carrying out this section, the
Secretary shall award grants on a competitive basis.
``(e) Administration.--
``(1) In general.--For 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 review in accordance
with section 103; and
``(C) award grants on the basis of merit, quality,
and relevance.
``(2) Term.--A grant under this section shall have a term
that does not exceed 5 years.
``(3) Other conditions.--The Secretary may set such other
conditions on the award of a grant under this section as the
Secretary determines appropriate.
``(f) 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).
``(g) Funding.--There is authorized to be appropriated $100,000,000
for each of fiscal years 2008 through 2012 to carry out this section.
``(h) Additional Funding.--In addition to funds made available
under subsection (g), of the funds of the Commodity Credit Corporation,
the Secretary shall make available to carry out this section a total of
$215,000,000 for fiscal years 2008 through 2012.''.
(b) Coordination.--In carrying out this section, the Secretary
shall ensure that the Director of the applicable Program Office
established under section 7104(a) coordinates projects and activities
carried out under this section to ensure, to the maximum extent
practicable, that duplication of effort is eliminated or minimized.
SEC. 7412. 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 E--Other Laws
SEC. 7501. 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. 7502. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.
(a) Endowment for 1994 Institutions.--Section 533(b) of the Equity
in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public
Law 103-382) is amended in the first sentence by striking ``2007'' and
inserting ``2012''.
(b) 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''.
(c) Research Grants.--Section 536(c) of the Equity in Educational
Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103-382)
is amended in the first sentence by striking ``2007'' and inserting
``2012''.
SEC. 7503. 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. 7504. 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. 7505. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANT ACT
(NATIONAL RESEARCH INITIATIVE).
Section 2 of the Competitive, Special, and Facilities Research
Grant Act (7 U.S.C. 450i) is amended--
(1) in subsection (b)(10), by striking ``2007'' and
inserting ``2012''; and
(2) by striking subsection (g).
SEC. 7506. AGRICULTURAL RISK PROTECTION ACT OF 2000 (CARBON CYCLE
RESEARCH).
Section 221(g) of the Agricultural Risk Protection Act of 2000 (7
U.S.C. 6711(g)) is amended by striking ``2007'' and inserting ``2012''.
SEC. 7507. 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 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. 7508. 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. 7509. CONSTRUCTION OF A 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. 197. CONSTRUCTION OF A 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 the provisions of section 195
(20 U.S.C. 195);
``(2) authorities provided to the Secretary of Agriculture
under section 196 (20 U.S.C. 196); and
``(3) appropriations provided for this purpose.''.
SEC. 7510. PUBLIC EDUCATION REGARDING USE OF BIOTECHNOLOGY IN PRODUCING
FOOD FOR HUMAN CONSUMPTION.
Section 10802(b) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 5921a(b))is amended by striking ``2007'' and inserting
``2012''.
SEC. 7511. FRESH CUT PRODUCE SAFETY GRANTS.
(a) In General.--The Secretary may award competitive research and
extension grants to eligible entities to enable such entities to
design, implement, and evaluate innovative, cost-effective programs to
improve and enhance the safety of fresh cut produce.
(b) Eligible Entities.--To be eligible to receive a grant under
subsection (a) an entity shall--
(1) be a university, college, or other entity designated by
the Secretary; and
(2) have developed partnerships with producers of fresh cut
produce.
(c) Use of Funds.--An entity shall use funds received under a grant
under this section to--
(1) improve sanitation and food safety practices in the
processing of fresh cut produce;
(2) develop improved techniques to monitor and inspect
fresh cut produce;
(3) develop efficient, rapid and sensitive methods to
detect contaminants in fresh cut produce;
(4) determine the sources of contamination in fresh cut
produce;
(5) develop methods to reduce or destroy harmful pathogens
before, during, and after processing of fresh cut produce; and
(6) conduct other research as determined appropriate by the
Secretary.
(d) 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 at least equal to the
amount provided by the Federal Government.
(e) Coordination.--In carrying out this section, the Secretary
shall ensure that the Director of the applicable Program Office
established under section 7104(a) coordinates projects and activities
carried out under this section to ensure, to the maximum extent
practicable, that duplication of effort is eliminated or minimized.
(f) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section for
each of fiscal years 2008 through 2012.
(g) Additional Funding.--In addition to funds made available under
subsection (f), of the funds of the Commodity Credit Corporation, the
Secretary shall make available to carry out this section a total of
$25,000,000 for fiscal years 2008 through 2012.
SEC. 7512. UDC/EFNEP ELIGIBILITY.
Section 208 of the District of Columbia Public Postsecondary
Education Reorganization Act (Public Law 93-471) is amended--
(1) in subsection (b)(2), by striking ``, except'' and all
that follows through the period and inserting a period;
(2) in subsection (c), by striking ``section 3'' each place
it appears and inserting ``section 3(c)''; and
(3) in subsection (c), by striking ``such sums may be used
to pay'' and all that follows through ``work.''.
SEC. 7513. HATCH ACT OF 1987.
Section 3(d)(4) of the Hatch Act of 1887 (7 U.S.C. 351c(d)(4)) is
amended--
(1) in the paragraph heading, by inserting ``and the
district of columbia'' after ``areas'';
(2) in subparagraph (A), by inserting `` and the District
of Columbia'' after ``United States'';
(3) in subparagraph (A), by inserting ``and the District of
Columbia'' after ``respectively,''; and
(4) in subparagraph (B), by inserting ``or the District of
Columbia'' after ``area''.
Subtitle F--Additional Provisions
SEC. 7601. MERIT REVIEW OF EXTENSION AND EDUCATIONAL GRANTS.
Section 103 of the Agricultural Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7613) is amended in subsection (a)(2)(A),
by striking ``Cooperative State Research, Education, and Extension
Service of the Department'' and inserting ``the National Institute for
Food and Agriculture.''.
SEC. 7602. 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 under--
(1) section 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) Report.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall provide to the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report regarding
the review carried out under subsection (a). The report shall include
recommendations--
(1) to reduce the administrative burden and workload upon
institutions associated with plan of work compliance while
meeting Department reporting needs for inputs, outputs, and
outcome indicators;
(2) to streamline the submission and reporting requirements
of the plan of work such that it is of practical utility to
both the department and the institution; and
(3) for any legislative changes necessary to carry out the
plan of work improvements.
(c) Consultation.--In carrying out the review and formulating and
compiling the recommendations, the Secretary shall consult with the
land grant institutions.
SEC. 7603. MULTISTATE AND INTEGRATION FUNDING.
(a) Funds Expended on Integration of Research and Extension.--
Section 3 of the Hatch Act of 1887 (7 U.S.C. 361c) is amended--
(1) in subsection (i)(2)(B), by striking ``the lesser of''
and inserting ``25 percent''; and
(2) by striking clauses (i) and (ii).
(b) Funds Expended on Multistate Cooperative Extension
Activities.--Section 3 of the Smith Lever Act (7 U.S.C. 343) is
amended--
(1) in subsection (h)(2)(B), by striking ``the lesser of''
and inserting ``25 percent''; and
(2) by striking clauses (i) and (ii).
SEC. 7604. EXPANDED FOOD AND NUTRITION EDUCATION PROGRAM.
(a) Funding to 1862, 1890, and Insular Area Institutions.--Section
1425(c)(2)(B) of the National Agriculture Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3175(c)(2)(B)) is amended--
(1) in the prefatory material, by striking ``among the
States'';
(2) by striking clause (i) and inserting the following:
``(i) $100,000 shall be distributed to each
of the land grant colleges and universities;'';
(3) by redesignating clause (ii) as clause (iii);
(4) by inserting after clause (i) the following:
``(ii) subject to subsection (d), of the
remainder, 10 percent in fiscal year 2008, 11
percent in fiscal year 2009, 12 percent in
fiscal year 2010, 13 percent in fiscal year
2011, 14 percent in fiscal year 2012, and 15
percent in fiscal year 2013 and each fiscal
year thereafter, shall be allocated to each
1890 Institution (as defined in section 2 of
the Agricultural Research, Extension, and
Education Reform Act of 1998) in an amount that
bears the same ratio to the total amount to be
allocated under this clause as the population
of the State living at or below 125 percent of
the income poverty guidelines prescribed by the
Office of Management and Budget (adjusted
pursuant to section 673(2) of the Omnibus
Budget Reconciliation Act of 1981 (42 U.S.C.
9902)), bears to the total population of all
the States that have 1890 Institutions living
at or below 125 percent of the income poverty
guidelines, as determined by the last preceding
decennial census at the time each such
additional amount is first appropriated:
Provided, That the total allocated under this
clause shall not exceed: (I) the amount of the
funds appropriated for the conduct of the
expanded food and nutrition education program
for the fiscal year that are in excess of the
amount appropriated for the conduct of the
program for the fiscal year ending September
30, 2007, reduced by (II) any amounts expended
pursuant to any adjustment under subsection
(d); and''; and
(5) by amending clause (iii), as redesignated--
(A) by striking ``allocated to each State'' and
inserting ``allocated to the institution eligible to
receive funds under the Act of July 2, 1862 (and
including the appropriate insular area institution) in
each State (and the University of the District of
Columbia, notwithstanding section 208(c) of Public Law
93-471)''; and
(B) by striking ``subparagraph.'' and inserting
``subparagraph: Provided, That the total allocated
under this clause to the University of the District of
Columbia shall not exceed: (I) the amount described in
the proviso to clause (ii), reduced further by (II) the
amount allocated under clause (ii).''.
(b) Authorization.--Section 1425(c)(3) of the National Agriculture
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3175(c)(3)) is amended by striking ``$83,000,000 for each of fiscal
years 1996 though 2007'' and inserting ``$90,000,000 for each of fiscal
years 2008 through 2014''.
(c) Effective Date.--The amendments made by this section take
effect on October 1, 2007.
SEC. 7605. 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. 7606. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND TECHNOLOGY
FELLOWSHIP PROGRAM.
(a) Establishment.--
(1) In general.--The Secretary of Agriculture shall
establish a fellowship program to be known as the ``Borlaug
International Agricultural Science and Technology Fellowship
Program,'' to provide fellowships for scientific training to
individuals from eligible countries (as described under
subsection (b)) who specialize in agricultural education,
research, and extension for study in the United States.
(2) Programs.--The Secretary shall carry out the program
established under paragraph (1) through 3 programs designed to
assist individual fellowship recipients as follows:
(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 to upgrade skills and understanding in
agricultural science and technology.
(C) The Borlaug Agricultural Policy Executive
Leadership Course to assist senior agricultural policy
makers from eligible countries with an initial focus on
sub-Saharan Africa and from the newly independent
states of the former Soviet Union.
(b) Eligible Countries.--Developing countries, as determined by the
Secretary using a gross national income per capita test, shall be
eligible to participate in the program established under this section.
(c) Purpose of Fellowships.--Fellowships under this section shall
promote food security and economic growth in eligible countries by
educating a new generation of agricultural scientists, increasing
scientific knowledge and collaborative research to improve agricultural
productivity, and extending this knowledge to users and their
intermediaries in the market place. Fellowships shall support--
(1) training and collaborative research opportunities
through exchanges for entry-level international agricultural
research scientists, faculty, and policymakers from eligible
countries;
(2) collaborative research to improve agricultural
productivity;
(3) the transfer of new science and agricultural
technologies to strengthen agricultural practice; and
(4) the reduction of barriers to technology adoption.
(d) Fellowship Recipients.--
(1) Eligible candidates.--The Secretary may provide
fellowships under the program authorized by this section to
individuals from eligible countries who specialize in or have
experience in agricultural education, research, extension, or
related fields, including individuals from the public and
private sectors, and private agricultural producers.
(2) Candidate identification.--The Secretary shall utilize
the expertise of United States land-grant 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 both the public and private
sectors of eligible countries.
(e) Use of Fellowships.--Fellowships shall promote collaborative
programs between agricultural professionals of eligible countries with
those of the United States and the international agricultural research
system and, as appropriate, with United States entities conducting
research. They will be used to support fellowship recipients through
the Graduate Studies Program in Agriculture established under
subsection (a)(2)(A).
(f) Program Implementation.--The Secretary shall provide for the
management, coordination, evaluation and monitoring of the overall
Borlaug International Agricultural Science and Technology Fellowship
Program and for the individual programs described in subsection (a)(2),
except that the Secretary may contract out to one or more collaborating
universities the management of one or more of the fellowship programs.
(g) Authorization of Appropriations.--There are authorized to be
appropriated without fiscal year limitation such sums as may be
necessary to carry out the program established under this section.
SEC. 7607. COST RECOVERY.
Section 1473A of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3319a) is amended by striking
``not exceeding 10 percent of the direct cost'' and inserting ``not
exceeding 19 percent of the direct cost''.
SEC. 7608. ORGANIC FOOD AND AGRICULTURAL SYSTEMS FUNDING.
It is the sense of Congress that the Secretary of Agriculture
should use a share of Agricultural Research Service's total annual
funding for research specific to organic food and agricultural systems
that is at least commensurate with the organic sector's market, in
order to facilitate the development of this growing sector. A portion
of these funds should be used to disseminate research results through
the National Agriculture Library's Alternative Farming Systems
Information Center.
TITLE VIII--FORESTRY
Subtitle A--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. Assistance to the Federated States of Micronesia, the
Republic of the Marshall Islands, and the
Republic of Palau.
Sec. 8004. Changes to Forest Resource Coordinating Committee.
Sec. 8005. Changes to State Forest Stewardship Coordinating Committees.
Sec. 8006. Competition in programs under Cooperative Forestry
Assistance Act of 1978.
Sec. 8007. Cooperative forest innovation partnership projects.
Subtitle B--Amendments to Other Laws
Sec. 8101. Healthy forest reserve program.
Sec. 8102. Emergency forest restoration program.
Sec. 8103. Office of International Forestry.
Sec. 8104. Rural revitalization technologies.
Subtitle C--Miscellaneous Provisions
Sec. 8201. Hispanic-serving institution agricultural land national
resources leadership program.
Subtitle A--Cooperative Forestry Assistance Act of 1978
SEC. 8001. NATIONAL PRIORITIES FOR PRIVATE FOREST CONSERVATION.
Section 2 of the Cooperative Forestry Assistance Act of 1978 (16
U.S.C. 2101) is amended--
(1) by redesignating subsections (c) and (d) as subsections
(e) and (f), respectively; and
(2) by inserting after subsection (b) the following 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 wildfire,
hurricane, tornado, windstorm, snow or ice storm, flooding,
drought, invasive species, or insect or disease outbreak, 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 and wildlife
habitat, and recreation.
``(d) Reporting Requirement.--Not later than September 30, 2011,
the Secretary shall submit to Congress a report describing how funding
was used under this Act 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 the State or equivalent State official shall develop
and submit to the Secretary, not later than two years after the date of
the enactment of the Farm, Nutrition, and Bioenergy Act of 2007, 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
of priority; and
``(D) any areas, known as multi-State areas, that
are of priority to more than just that State.
``(2) A 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 available to
the State forester or equivalent State official from
all sources to address the State-wide strategy required
by subparagraph (A).
``(b) Updating.--The State forester or equivalent State official
shall submit the State-wide strategy required by subsection (a)(2) on
an annual basis. The State-wide assessment of forest resource
conditions required by subsection (a)(1) shall be updated as the
Secretary or State Forester or equivalent State official determines to
be necessary.
``(c) Coordination.--In developing the State-wide assessment and
annual strategy under 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 to incorporate any
overlapping priorities included in State wildlife action plans;
and
``(3) the State Technical Committee.
``(d) Funding.--Of the funds available under this Act for a fiscal
year, the Secretary may not use more than $10,000,000 to implement this
section for that fiscal year. Use of funds for implementing this
section shall be consistent with the original authorities for such
funds.''.
SEC. 8003. 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. 8004. 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 private non-industrial 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 Administrator of the Cooperative State
Research, Education, and Extension Service.
``(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) A private non-industrial forest
landowner.
``(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).
``(ix) 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 on private non-
industrial forest landowners;
``(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 private non-industrial
forested land;
``(C) provide advice on the allocation of funds,
including the competitive funds set-aside by sections
8006 and 8007 of the Farm, Nutrition, and Bioenergy Act
of 2007; and
``(D) assist the Secretary in developing and
reviewing the report required by section 2(d).
``(5) Meeting.--The Coordinating Committee shall meet
biannually to discuss progress in addressing the national
priorities specified in section 2(c) and issues regarding non-
industrial 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 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 Committee.''.
SEC. 8005. 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. 8006. COMPETITION IN PROGRAMS UNDER COOPERATIVE FORESTRY
ASSISTANCE ACT OF 1978.
(a) Competition.--Beginning not later than 3 years after the date
of the enactment of this Act, the Secretary of Agriculture shall
competitively allocate a portion, to be determined by the Secretary, of
the funds available under the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2101 et seq.) 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) of the
Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2113(a)).
(c) Priority.--The Secretary shall give priority for funding to
States for which the strategies submitted under section 2A(a)(2) of the
Cooperative Forestry Assistance Act of 1978 will best promote the
national priorities specified in section 2(c) of such Act.
SEC. 8007. COOPERATIVE FOREST INNOVATION PARTNERSHIP PROJECTS.
(a) Cooperative Forest Innovation Partnership Projects.--The
Secretary of Agriculture may competitively allocate not more than 5
percent of funding available under the Cooperative Forestry Assistance
Act of 1978 (16 U.S.C. 2101 et seq.) 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) of such Act.
(b) Eligibility.--Notwithstanding the eligibility limitations
contained within the Cooperative Forestry Assistance Act of 1978, any
State or local government, Indian tribe, land-grant college or
university, or private entity shall be eligible for funds 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--Amendments to Other Laws
SEC. 8101. HEALTHY FOREST RESERVE PROGRAM.
Section 508 of the Healthy Forests Restoration Act of 2003 (16
U.S.C. 6578) is amended to read as follows:
``SEC. 508. FUNDING.
``Notwithstanding any other provision of law, of the funds of the
Commodity Credit Corporation, the Secretary shall make available to
carry out this title $10,000,000 for each of fiscal years 2008 through
2012. Such funds shall remain available until expended.''.
SEC. 8102. EMERGENCY FOREST RESTORATION PROGRAM.
(a) Establishment.--Title IV of the Agricultural Credit Act of 1978
(16 U.S.C. 2201-2205) is amended--
(1) by redesignating sections 404, 405, and 406 as sections
405, 406, and 407, respectively; and
(2) by inserting after section 403 the following new
section:
``SEC. 404. EMERGENCY FOREST RESTORATION PROGRAM.
``(a) Availability of Assistance.--The Secretary of Agriculture is
authorized to provide financial and technical assistance to an owner of
non-industrial private forest lands to assist with developing and
implementing an approved plan in accordance with subsection (c)(2).
``(b) Amount of Assistance.--
``(1) Cost share.--Payments under subsection (a) may not
cover more than 75 percent of the total cost of measures
implemented pursuant to an approved plan in accordance with
subsection (c)(2).
``(2) Annual limit.--An owner of non-industrial private
forest lands may not receive more than $50,000 per year under
this section.
``(c) Eligibility.--To be eligible for assistance under this
section, a landowner must--
``(1) have suffered a loss of, or damage to, non-industrial
private forest land due to events, including wildfires,
hurricanes, drought, windstorms, insect and disease, ice
storms, or invasive species, as determined by the Secretary;
and
``(2) develop a plan, in cooperation with the Secretary,
and agree to implement the plan during the 10-year period
beginning on the date of the loss, that--
``(A) provides for reforestation, rehabilitation,
and related measures for the non-industrial private
forest land;
``(B) restores the land and related natural
resources;
``(C) uses best management practices on the forest
land, in accordance with the best management practices
as determined by the Secretary; and
``(D) incorporates good stewardship and
conservation practices on the land, while maintaining
the land in a forested state.
``(d) Insect and Disease Threats.--Notwithstanding subsection
(c)(1), non-industrial private forest lands are eligible under this
section if the Secretary determines that the lands are under an
imminent threat of loss or damage by insect or disease and immediate
action would help to avoid the loss or damage.
``(e) Non-Industrial Private Forest Land Defined.--In this section,
the term `non-industrial private forest land' means rural lands, as
determined by the Secretary, that--
``(1) have existing tree cover or had tree cover within the
preceding 10 years; and
``(2) are owned by any non-industrial private individual,
group, association, corporation, Indian tribe, or other private
legal entity so long as the individual, group, association,
corporation, tribe, or entity has definitive decision-making
authority over the lands.''.
(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 404 of the Agricultural Credit Act of
1978, as added by subsection (a).
SEC. 8103. 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. 8104. 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''.
Subtitle C--Miscellaneous Provisions
SEC. 8201. HISPANIC-SERVING INSTITUTION AGRICULTURAL LAND NATIONAL
RESOURCES LEADERSHIP PROGRAM.
(a) 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.
(b) 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.
(c) 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)).
(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. Table of contents.
Sec. 9002. Federal procurement of biobased products.
Sec. 9003. Loan guarantees for biorefineries and biofuel production
plants.
Sec. 9004. Energy audit and renewable energy development program.
Sec. 9005. Renewable energy systems and energy efficiency improvements.
Sec. 9006. Biomass Research and Development Act of 2000.
Sec. 9007. Adjustments to the bioenergy program.
Sec. 9008. Research, extension, and educational programs on biobased
energy technologies and products.
Sec. 9009. Energy Council of the Department of Agriculture.
Sec. 9010. Farm energy production pilot program.
Sec. 9011. Rural energy self-sufficiency initiative.
Sec. 9012. Agricultural biofuels from biomass internship pilot program.
Sec. 9013. Feedstock flexibility program for bioenergy producers.
Sec. 9014. Biomass inventory report.
Sec. 9015. Future farmsteads program.
Sec. 9016. Sense of Congress on renewable energy.
SEC. 9001. TABLE OF CONTENTS.
Title IX of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 8101 et seq.) is amended by inserting before section 9001 the
following new section:
``SEC. 9000. TABLE OF CONTENTS.
``The table of contents of this title is as follows:
``TITLE IX--ENERGY
``Sec. 9000. Short title; table of contents.
``Sec. 9001. Definitions.
``Sec. 9002. Federal procurement of biobased products.
``Sec. 9003. Biorefinery development grants.
``Sec. 9004. Biodiesel fuel education program.
``Sec. 9005. Energy audit and renewable energy development program.
``Sec. 9006. Rural energy for America program.
``Sec. 9007. Hydrogen and fuel cell technologies.
``Sec. 9008. Biomass Research and Development Act of 2000.
``Sec. 9009. Cooperative research and extension projects.
``Sec. 9010. Continuation of bioenergy program.
``Sec. 9011. Research, extension, and educational programs on biobased
energy technologies and products.
``Sec. 9012. Energy Council of the Department of Agriculture.
``Sec. 9013. Farm energy production pilot program.
``Sec. 9014. Rural energy self-sufficiency initiative.
``Sec. 9015. Agricultural Biofuels from Biomass Internship Pilot
Program.
``Sec. 9016. Feedstock flexibility program for bioenergy producers.''.
SEC. 9002. FEDERAL PROCUREMENT OF BIOBASED PRODUCTS.
(a) Composition of Biobased Products.--Section 9002(c)(1) of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8102(c)(1)) is
amended by inserting ``, composed of at least five percent of
intermediate ingredients and feedstocks (such as biopolymers, methyl
soyate, and soy polyols) as designated by the Secretary,'' after
``highest percentage of biobased products practicable''.
(b) Procurement Guideline Considerations.--Section 9002(e)(2)(B) of
the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
8102(e)(2)(B)) is amended by striking ``life cycle costs'' and
inserting ``information on life cycle costs if such information is
appropriate and available''.
(c) Labeling Requirements and Revised Deadline.--Section 9002(h) of
the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8102(h))
is amended--
(1) in paragraph (2)--
(A) by striking ``Within one year after the date of
enactment of this Act'' and inserting ``Not later than
90 days after the date of enactment of the (Farm,
Nutrition, and Bioenergy Act of 2007),''; and
(B) by adding at the end the following: ``Criteria
shall be issued for finished products and intermediate
ingredients and feedstocks.'';
(2) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively, and inserting after paragraph (2)
the following:
``(3) Consultation.--In developing the eligibility criteria
for the labeling program under this section, the Secretary
shall consult with other Federal agencies and with non-
governmental groups with an interest in biobased products
including small and large producers of biobased materials and
products, industry, trade organizations, academia, consumer
organizations, and environmental organizations.''.
(d) Authorization of Appropriations.--Paragraph (1) of section
9002(k) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
8102(k)) is amended to read as follows:
``(1) Authorization of appropriations.--
``(A) Federal procurement.--There are authorized to
be appropriated $1,000,000 for each of fiscal years
2008 through 2013 to implement the provisions of this
section other than subsection (h).
``(B) Labeling.--There are authorized to be
appropriated $1,000,000 for each of fiscal years 2008
through 2013 to implement subsection (h) of this
section.''.
(e) Report Requirements.--
(1) Report by agencies to administrator for federal
procurement policy.--Subsection (f) of section 9002 of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 8102) is
amended--
(A) by striking ``The Office of'' and inserting
``(1) The Administrator for''; and
(B) by adding at the end the following new
paragraph:
``(2) To assist the Administrator for Federal Procurement Policy in
preparing the report to Congress required under paragraph (1), each
procuring agency each year shall submit to the Administrator a report
covering the following:
``(A) Actions taken to implement subsections (c), (d), and
(g) of this section.
``(B) The results of the annual review and monitoring
program established under subsection (g)(2)(C).
``(C) The number of contracts entered into by the agency
during the year covered by the report that include the
procurement of biobased products.
``(D) A list of the biobased products procured by the
agency during the year covered by the report.''.
(2) Report by secretary to congress on implementation of
section.--Section 9002 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8102) is amended by adding at
the end the following new subsection:
``(l) Report by Secretary to Congress on Implementation of
Section.--Not later than six months after the date of the enactment of
the Farm, Nutrition, and Bioenergy Act of 2007, and each year
thereafter, the Secretary shall submit to Congress a report on the
implementation of this section. The report shall include the following:
``(1) A comprehensive management plan defining tasks,
milestones, and funding allocations for fully implementing this
section.
``(2) A list of items designated under subsection (e)(1)(A)
whose procurement will carry out the objectives of this
section, with associated cost and performance data.
``(3) Information on the current status of implementation
of the procurement preference under this section, including the
procurement program of each Federal agency under subsection
(g), and the voluntary labeling program under subsection
(h).''.
(f) Repeal of Subsection.--Subsection (b) of section 9002 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8102(b)) is
hereby repealed.
SEC. 9003. LOAN GUARANTEES FOR BIOREFINERIES AND BIOFUEL PRODUCTION
PLANTS.
Section 9003 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 8103) is amended--
(1) in the section heading, by inserting ``; loan
guarantees for biorefineries and biofuel production plants''
after ``grants'';
(2) in subsection (b)(2)(A), by striking ``and'' the 1st
place it appears and inserting ``or'';
(3) in subsection (c), by redesignating subsection (h) as
subsection (j) and subsections (d) through (g) as subsections
(e) through (h), respectively, and inserting after subsection
(c) the following:
``(d) Loan Guarantees.--
``(1) In general.--The Secretary shall make loan guarantees
to eligible entities to assist in paying the cost of
development and construction of biorefineries and biofuel
production plants (including retrofitting) to carry out
projects to demonstrate the commercial viability of 1 or more
processes for converting biomass to fuels or chemicals.
``(2) Limitations.--
``(A) Maximum percentage of loan guaranteed.--A
loan guarantee under paragraph (1) shall be for not
more than 90 percent of the principal and interest due
on the loan.
``(B) Total amounts guaranteed.--The total amount
of principal and interest guaranteed under paragraph
(1) shall not exceed--
``(i) $1,000,000,000, in the case of loans
valued at not more than $100,000,000; or
``(ii) $1,000,000,000, in the case of loans
valued at more than $100,000,000 but not more
than $250,000,000.
``(C) Maximum term of loan guaranteed.--The
Secretary shall determine the maximum term of a loan
guarantee provided under paragraph (1).'';
(4) in subsection (f) (as so redesignated)--
(A) in paragraph (2)(B)--
(i) by striking ``and'' at the end of
clause (viii);
(ii) by striking the period at the end of
clause (ix) and inserting ``; and''; and
(iii) by adding at the end the following:
``(x) The level of local ownership.''; and
(B) by adding at the end the following:
``(3) Priority in awarding loan guarantees.--In selecting
projects to receive loan guarantees under subsection (d), the
Secretary shall give priority to projects based on the criteria
set forth in paragraph (2)(B) of this subsection.''; and
(5) by inserting after subsection (h) the following new
subsection:
``(i) Condition of Provision of Assistance.--As a condition of
receiving a grant or loan guarantee under this section, the 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. The Secretary of Labor
shall have, with respect to such labor standards, the authority and
functions set forth in Reorganization Plan Numbered 14 of 1950 (15 Fed.
Reg. 3176; 64 Stat. 1267) and section 3145 of such title.'';
(6) in subsection (j) (as so redesignated), by striking
``2007'' and inserting ``2012''; and
(7) by adding at the end the following new subsection:
``(k) Additional Funding for Loan Guarantees.--Of the funds of the
Commodity Credit Corporation, the Secretary shall use to carry out this
section--
``(1) $75,000,000 for fiscal year 2008;
``(2) $100,000,000 for fiscal year 2009;
``(3) $125,000,000 for fiscal year 2010;
``(4) $200,000,000 for fiscal year 2011; and
``(5) $300,000,000 for fiscal year 2012.''.
(8) in paragraph (2)(B) of subsection (f) (as so
redesignated)--
(A) in clause (viii), by striking ``and'' at the
end;
(B) in clause ix, by striking ``approaches.'' and
inserting ``approaches; and''; and
(C) by adding at the end the following new clause:
``(x) whether the impact the distribution
of funds would have on existing manufacturing
and other facilities that utilize similar
feedstocks would be minimal.''.
SEC. 9004. ENERGY AUDIT AND RENEWABLE ENERGY DEVELOPMENT PROGRAM.
Section 9005(i) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 8105) is amended by striking ``2007'' and inserting
``2012''.
SEC. 9005. RENEWABLE ENERGY SYSTEMS AND ENERGY EFFICIENCY IMPROVEMENTS.
Section 9006 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 8106) is amended--
(1) by striking the section heading and inserting the
following:
``SEC. 9006. RURAL ENERGY FOR AMERICA PROGRAM.'';
(2) in subsection (a)--
(A) in the matter preceding paragraph (1), by
inserting ``, other agricultural producer'' after
``rancher'';
(B) in paragraph (1), by striking ``and'' at the
end;
(C) in paragraph (2), by striking the period and
inserting ``; and''; and
(D) by adding at the end the following new
paragraph:
``(3) produce and sell electricity generated by new
renewable energy systems.'';
(3) in subsection (b), by inserting ``, other agricultural
producer'' after ``rancher'';
(4) in subsection (c)--
(A) in paragraph (1)--
(i) in subparagraph (B), by striking ``50
percent'' and inserting ``75 percent''; and
(ii) by redesignating subparagraph (B) as
subparagraph (C) and inserting after
subparagraph (A) the following:
``(B) Loan guarantees.--
``(i) Maximum amount.--The amount of a loan
guaranteed under this section shall not exceed
$25,000,000.
``(ii) Maximum percentage.--A loan
guaranteed under this section shall not exceed
75 percent of the cost of the activity funded
under subsection (a).''; and
(B) by adding at the end the following new
paragraph:
``(3) Prioritization.--The Secretary shall give the
greatest priority for grants under subsection (a) to activities
for which the least percentage of the total cost of such
activities is requested by the farmer, rancher, other
agricultural producer, or rural small business.''.
(5) by redesignating subsection (e) as subsection (g) and
striking subsection (f); and
(6) by inserting after subsection (d) the following new
subsections:
``(e) Feasibility Studies.--
``(1) In general.--The Secretary may provide assistance to
a farmer, rancher, other agricultural producer, or rural small
business to conduct a feasibility study of a project for which
assistance may be provided under this section.
``(2) Limitation.--The Secretary shall use not more than 10
percent of the funds made available to carry out this section
to provide assistance described in paragraph (1).
``(3) Criteria.--The Secretary shall issue regulations
establishing criteria for the receipt of assistance under this
subsection.
``(4) Avoidance of duplicative assistance.--An farmer,
rancher, other agricultural producer, or rural small business
that receives assistance to carry out a feasibility study for a
project under this subsection shall not be eligible for
assistance to carry out a feasibility study for the project
under any other provision of law.
``(f) Small Activities.--
``(1) Limitation on use of funds.--The Secretary shall use
not less than 15 percent of the funds made available under
subsection (h) to provide grants for activities that have a
cost of $50,000 or less.
``(2) Exception.--Beginning on the first day of the third
quarter of a fiscal year, the limitation on the use of funds
under paragraph (1) shall not apply to funds made available
under subsection (h) for such fiscal year.''.
(7) by adding at the end the following new subsection:
``(h) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary of Agriculture shall make available to carry out this
section--
``(1) $50,000,000 for fiscal year 2008;
``(2) $75,000,000 for fiscal year 2009;
``(3) $100,000,000 for fiscal year 2010;
``(4) $125,000,000 for fiscal year 2011; and
``(5) $150,000,000 for fiscal year 2012.''.
SEC. 9006. BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000.
(a) Restatement of Act.--Section 9008 of the Farm Security and
Rural Investment Act of 2002 (116 Stat. 486) is amended to read as
follows:
``SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000.
``(a) Short Title.--This section may be cited as the `Biomass
Research and Development Act of 2000'.
``(b) Findings.--Congress finds that--
``(1) conversion of biomass into biobased industrial
products offers outstanding potential for benefit to the
national interest through--
``(A) improved strategic security and balance of
payments;
``(B) healthier rural economies;
``(C) improved environmental quality;
``(D) near-zero net greenhouse gas emissions;
``(E) technology export; and
``(F) sustainable resource supply;
``(2) the key technical challenges to be overcome in order
for biobased industrial products to be cost-competitive are
finding new technology and reducing the cost of technology for
converting biomass into desired biobased industrial products;
``(3) biobased fuels have the clear potential to be
sustainable, low cost, and high performance fuels that are
compatible with both current and future transportation systems
and provide near-zero net greenhouse gas emissions;
``(4) biobased chemicals have the clear potential for
environmentally benign product life cycles;
``(5) biobased power can--
``(A) provide environmental benefits;
``(B) promote rural economic development; and
``(C) diversify energy resource options;
``(6) many biomass feedstocks suitable for industrial
processing show the clear potential for sustainable production,
in some cases resulting in improved soil fertility and carbon
sequestration;
``(7)(A) grain processing mills are biorefineries that
produce a diversity of useful food, chemical, feed, and fuel
products; and
``(B) technologies that result in further diversification
of the range of value-added biobased industrial products can
meet a key need for the grain processing industry;
``(8)(A) cellulosic feedstocks are attractive because of
their low cost and widespread availability; and
``(B) research resulting in cost-effective technology to
overcome the recalcitrance of cellulosic biomass would allow
biorefineries to produce fuels and bulk chemicals on a very
large scale, with a commensurately large realization of the
benefit described in paragraph (1);
``(9) research into the fundamentals to understand
important mechanisms of biomass conversion can be expected to
accelerate the application and advancement of biomass
processing technology by--
``(A) increasing the confidence and speed with
which new technologies can be scaled up; and
``(B) giving rise to processing innovations based
on new knowledge;
``(10) the added utility of biobased industrial products
developed through improvements in processing technology would
encourage the design of feedstocks that would meet future needs
more effectively;
``(11) the creation of value-added biobased industrial
products would create new jobs in construction, manufacturing,
and distribution, as well as new higher-valued exports of
products and technology;
``(12)(A) because of the relatively short-term time horizon
characteristic of private sector investments, and because many
benefits of biomass processing are in the national interest, it
is appropriate for the Federal Government to provide
precommercial investment in fundamental research and research-
driven innovation in the biomass processing area; and
``(B) such an investment would provide a valuable
complement to ongoing and past governmental support in the
biomass processing area; and
``(13) several prominent studies, including studies by the
President's Committee of Advisors on Science and Technology and
the National Research Council--
``(A) support the potential for large research-
driven advances in technologies for production of
biobased industrial products as well as associated
benefits; and
``(B) document the need for a focused, integrated,
and innovation-driven research effort to provide the
appropriate progress in a timely manner.
``(c) Definitions.--In this section:
``(1) Advisory committee.--The term `Advisory Committee'
means the Biomass Research and Development Technical Advisory
Committee established by this section.
``(2) Biobased fuel.--The term `biobased fuel' means any
transportation or heating fuel produced from biomass.
``(3) Biobased product.--The term `biobased product' means
an industrial product (including chemicals, materials, and
polymers) produced from biomass, or a commercial or industrial
product (including animal feed and electric power) derived in
connection with the conversion of biomass to fuel.
``(4) Biomass.--The term `biomass' means any organic matter
that is available on a renewable or recurring basis, including
agricultural crops and trees, wood and wood wastes and
residues, plants (including aquatic plants), grasses, residues,
fibers, and animal wastes, municipal wastes, and other waste
materials.
``(5) Board.--The term `Board' means the Biomass Research
and Development Board established by this section.
``(6) Demonstration.--The term `demonstration' means
demonstration of technology in a pilot plant or semi-works
scale facility.
``(7) Initiative.--The term `Initiative' means the Biomass
Research and Development Initiative established under this
section.
``(8) 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)).
``(9) National laboratory.--The term `National Laboratory'
has the meaning given that term in section 2 of the Energy
Policy Act of 2005.
``(10) Point of contact.--The term `point of contact' means
a point of contact designated under this section.
``(d) Cooperation and Coordination in Biomass Research and
Development.--
``(1) In general.--The Secretary of Agriculture and the
Secretary of Energy shall cooperate with respect to, and
coordinate, policies and procedures that promote research and
development leading to the production of biobased fuels and
biobased products.
``(2) Points of contact.--
``(A) In general.--To coordinate research and
development programs and activities relating to
biobased fuels and biobased products that are carried
out by their respective Departments--
``(i) the Secretary of Agriculture shall
designate, as the point of contact for the
Department of Agriculture, an officer of the
Department of Agriculture appointed by the
President to a position in the Department
before the date of the designation, by and with
the advice and consent of the Senate; and
``(ii) the Secretary of Energy shall
designate, as the point of contact for the
Department of Energy, an officer of the
Department of Energy appointed by the President
to a position in the Department before the date
of the designation, by and with the advice and
consent of the Senate.
``(B) Duties.--The points of contact shall
jointly--
``(i) assist in arranging interlaboratory
and site-specific supplemental agreements for
research and development projects relating to
biobased fuels and biobased products;
``(ii) serve as cochairpersons of the
Board;
``(iii) administer the Initiative; and
``(iv) respond in writing to each
recommendation of the Advisory Committee made
under subsection (f).
``(e) Biomass Research and Development Board.--
``(1) Establishment.--There is established the Biomass
Research and Development Board, which shall supersede the
Interagency Council on Biobased Products and Bioenergy
established by Executive Order No. 13134, to coordinate
programs within and among departments and agencies of the
Federal Government for the purpose of promoting the use of
biobased fuels and biobased products by--
``(A) maximizing the benefits deriving from Federal
grants and assistance; and
``(B) bringing coherence to Federal strategic
planning.
``(2) Membership.--The Board shall consist of--
``(A) the point of contact of the Department of
Energy designated under subsection (d), who shall serve
as cochairperson of the Board;
``(B) the point of contact of the Department of
Agriculture designated under subsection (d), who shall
serve as cochairperson of the Board;
``(C) a senior officer of each of the Department of
the Interior, the Environmental Protection Agency, the
National Science Foundation, and the Office of Science
and Technology Policy, each of whom shall--
``(i) be appointed by the head of the
respective agency; and
``(ii) have a rank that is equivalent to
the rank of the points of contact; and
``(D) at the option of the Secretary of Agriculture
and the Secretary of Energy, other members appointed by
the Secretaries (after consultation with the members
described in subparagraphs (A) through (C)).
``(3) Duties.--The Board shall--
``(A) coordinate research and development
activities relating to biobased fuels 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 (g) to
review proposals is composed predominantly of
independent experts selected from outside the
Departments of Agriculture and Energy.
``(4) Funding.--Each agency represented on the Board is
encouraged to provide funds for any purpose under this section.
``(5) Meetings.--The Board shall meet at least quarterly to
enable the Board to carry out the duties of the Board under
paragraph (3).
``(f) Biomass Research and Development Technical Advisory
Committee.--
``(1) Establishment.--There is established the Biomass
Research and Development Technical Advisory Committee, which
shall supersede the Advisory Committee on Biobased Products and
Bioenergy established by Executive Order No. 13134--
``(A) to advise the Secretary of Energy, the
Secretary of Agriculture, and the points of contact
concerning--
``(i) the technical focus and direction of
requests for proposals issued under the
Initiative; and
``(ii) procedures for reviewing and
evaluating the proposals;
``(B) to facilitate consultations and partnerships
among Federal and State agencies, agricultural
producers, industry, consumers, the research community,
and other interested groups to carry out program
activities relating to the Initiative; and
``(C) to evaluate and perform strategic planning on
program activities relating to the Initiative.
``(2) Membership.--
``(A) In general.--The Advisory Committee shall
consist of--
``(i) an individual affiliated with the
biofuels industry;
``(ii) an individual affiliated with the
biobased industrial and commercial products
industry;
``(iii) an individual affiliated with an
institution of higher education who has
expertise in biobased fuels and biobased
products;
``(iv) two prominent engineers or
scientists from government or academia who have
expertise in biobased fuels and biobased
products;
``(v) an individual affiliated with a
commodity trade association;
``(vi) 2 individuals affiliated with an
environmental or conservation organization;
``(vii) an individual associated with State
government who has expertise in biobased fuels
and biobased products;
``(viii) an individual with expertise in
energy and environmental analysis;
``(ix) an individual with expertise in the
economics of biobased fuels and biobased
products;
``(x) an individual with expertise in
agricultural economics;
``(xi) an individual with expertise in
agronomy, crop science, or soil science; and
``(xii) at the option of the points of
contact, other members.
``(B) Appointment.--The members of the Advisory
Committee shall be appointed by the points of contact.
``(3) Duties.--The Advisory Committee shall--
``(A) advise the points of contact with respect to
the Initiative; and
``(B) evaluate whether, and make recommendations in
writing to the Board to ensure that--
``(i) funds authorized for the Initiative
are distributed and used in a manner that is
consistent with the objectives, purposes, and
considerations of the Initiative;
``(ii) solicitations are open and
competitive with awards made annually and that
objectives and evaluation criteria of the
solicitations are clearly stated and minimally
prescriptive, with no areas of special
interest;
``(iii) the points of contact are funding
proposals under this title that are selected on
the basis of merit, as determined by an
independent panel of scientific and technical
peers predominantly from outside the
Departments of Agriculture and Energy; and
``(iv) activities under this section are
carried out in accordance with this section.
``(4) Coordination.--To avoid duplication of effort, the
Advisory Committee shall coordinate its activities with those
of other Federal advisory committees working in related areas.
``(5) Meetings.--The Advisory Committee shall meet at least
quarterly to enable the Advisory Committee to carry out the
duties of the Advisory Committee.
``(6) Terms.--Members of the Advisory Committee shall be
appointed for a term of 3 years, except that--
``(A) one-third of the members initially appointed
shall be appointed for a term of 1 year; and
``(B) one-third of the members initially appointed
shall be appointed for a term of 2 years.
``(g) 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, biobased fuels and biobased products, and the
methods, practices and technologies, for their production.
``(2) Objectives.--The objectives of the Initiative are to
develop--
``(A) technologies and processes necessary for
abundant commercial production of biobased fuels at
prices competitive with fossil fuels;
``(B) high-value biobased products--
``(i) to enhance the economic viability of
biobased fuels and power;
``(ii) as substitutes for petroleum-based
feedstocks and products; and
``(iii) to enhance the value of coproducts
arise from such technologies and processes; and
``(C) a diversity of sustainable domestic sources
of biomass for conversion to biobased fuels and
biobased products.
``(3) Purposes.--The purposes of the Initiative are--
``(A) to increase the energy security of the United
States;
``(B) to create jobs and enhance the economic
development of the rural economy;
``(C) to enhance the environment and public health;
and
``(D) to diversify markets for raw agricultural and
forestry products.
``(4) Technical areas.--To advance the objectives and
purposes of the Initiative, the Secretary of Agriculture and
the Secretary of Energy, in consultation with the Administrator
of the Environmental Protection Agency and heads of other
appropriate departments and agencies (referred to in this
subsection as the `Secretaries'), shall direct research,
development, and commercial applications toward--
``(A) feedstocks and feedstock systems relevant to
production of raw materials for conversion to biobased
fuels and biobased products, including--
``(i) development of advanced and dedicated
crops and other biomass sources with desired
features, including enhanced productivity,
broader site range, low requirements for
chemical inputs, and enhanced processing;
``(ii) advanced crop production methods to
achieve the features described in clause (i);
``(iii) feedstock harvest, handling,
transport, and storage;
``(iv) strategies for integrating feedstock
production into existing managed land; and
``(v) improving the value and quality of
coproducts, including materials used for animal
feeding;
``(B) overcoming recalcitrance of cellulosic
biomass through developing technologies for converting
cellulosic biomass into intermediates that can
subsequently be converted into biobased fuels and
biobased products, including--
``(i) pretreatment in combination with
enzymatic or microbial hydrolysis;
``(ii) thermochemical approaches, including
gasification and pyrolysis; and
``(iii) self-processing crops that express
enzymes capable of degrading cellulosic
biomass;
``(C) product diversification through technologies
relevant to production of a range of biobased products
(including chemicals, animal feeds, and cogenerated
power) that eventually can increase the feasibility of
fuel production in a biorefinery, including--
``(i) catalytic processing, including
thermochemical fuel production;
``(ii) metabolic engineering, enzyme
engineering, and fermentation systems for
biological production of desired products,
coproducts, or cogeneration of power;
``(iii) product recovery;
``(iv) power production technologies;
``(v) integration into existing biomass
processing facilities, including starch ethanol
plants, sugar processing or refining plants,
paper mills, and power plants; and
``(vi) enhancement of products and
coproducts, including dried distillers grains
(including substantially elevated starch
content, increased oil content, improved fatty
acid profiles, and improved resistance to mold
and mycotoxins; and
``(D) analysis that provides strategic guidance for
the application of biomass technologies in accordance
with realization of improved sustainability and
environmental quality, cost effectiveness, security,
and rural economic development, usually featuring
system-wide approaches.
``(5) Additional considerations.--Within the technical
areas described in paragraph (4), and in addition to advancing
the purposes described in paragraph (3) and the objectives
described in paragraph (2), the Secretaries shall support
research and development--
``(A) to create continuously expanding
opportunities for participants in existing biofuels
production by seeking synergies and continuity with
current technologies and practices, such as
improvements in dried distillers grains as a bridge
feedstock;
``(B) to maximize the environmental, economic, and
social benefits of production of biobased fuels and
biobased products on a large scale through life-cycle
economic and environmental analysis and other means;
and
``(C) to assess the potential of Federal land and
land management programs as feedstock resources for
biobased fuels and biobased products, consistent with
the integrity of soil and water resources and with
other environmental considerations.
``(6) Eligible entities.--To be eligible for a grant,
contract, or assistance under this subsection, an applicant
shall be--
``(A) an institution of higher education;
``(B) a National Laboratory;
``(C) a Federal research agency;
``(D) a State research agency;
``(E) a private sector entity;
``(F) a nonprofit organization; or
``(G) a consortium of two or more entities
described in subparagraphs (A) through (F).
``(7) Administration.--
``(A) In general.--After consultation with the
Board, the points of contact shall--
``(i) publish annually one or more joint
requests for proposals for grants, contracts,
and assistance under this subsection;
``(ii) require that grants, contracts, and
assistance under this section be awarded
competitively, on the basis of merit, after the
establishment of procedures that provide for
scientific peer review by an independent panel
of scientific and technical peers; and
``(iii) give some preference to
applications that--
``(I) involve a consortia of
experts from multiple institutions;
``(II) encourage the integration of
disciplines and application of the best
technical resources; and
``(III) increase the geographic
diversity of demonstration projects.
``(B) Distribution of funding by technical area.--
Of the funds authorized to be appropriated for
activities described in this subsection, funds shall be
distributed for each of fiscal years 2007 through 2012
so as to achieve an approximate distribution of--
``(i) 20 percent of the funds to carry out
activities for feedstock production under
paragraph (4)(A);
``(ii) 45 percent of the funds to carry out
activities for overcoming recalcitrance of
cellulosic biomass under paragraph (4)(B), of
which not less than 10 percent shall be used
for activities referred to in each clause of
paragraph (4)(B);
``(iii) 30 percent of the funds to carry
out activities for product diversification
under paragraph (4)(C); and
``(iv) 5 percent of the funds to carry out
activities for strategic guidance under
paragraph (4)(D).
``(C) Distribution of funding within each technical
area.--Within each technical area described in
subparagraphs (A) through (C) of paragraph (4), funds
shall be distributed for each of fiscal years 2007
through 2012 so as to achieve an approximate
distribution of--
``(i) 15 percent of the funds for applied
fundamentals;
``(ii) 35 percent of the funds for
innovation; and
``(iii) 50 percent of the funds for
demonstration and commercial applications.
``(D) Matching funds.--
``(i) In general.--A minimum 20 percent
funding match shall be required for
demonstration projects under this section.
``(ii) Commercial applications.--A minimum
of 50 percent funding match shall be required
for commercial application projects under this
section.
``(E) Technology and information transfer to
agricultural users.--The Administrator of the
Cooperative State Research, Education, and Extension
Service and the Chief of the Natural Resources
Conservation Service shall ensure that applicable
research results and technologies from the Initiative
are adapted, made available, and disseminated through
those services, as appropriate.
``(h) Administrative Support and Funds.--
``(1) In general.--To the extent administrative support and
funds are not provided by other agencies under paragraph
(2)(b), 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 (e)(2)(C), and the other members appointed
under subsection (e)(2)(D), may, and are encouraged to, provide
administrative support and funds of their respective agencies
to the Board and the Advisory Committee.
``(3) Limitation.--Not more than 4 percent of the amount
appropriated for each fiscal year under subsection (g)(6) may
be used to pay the administrative costs of carrying out this
section.
``(i) Reports.--
``(1) Annual reports.--For each fiscal year for which funds
are made available to carry out this section, the Secretary of
Energy and the Secretary of Agriculture shall jointly submit to
Congress a detailed report on--
``(A) the status and progress of the Initiative,
including a report from the Advisory Committee on
whether funds appropriated for the Initiative have been
distributed and used in a manner that--
``(i) is consistent with the objectives,
purposes, and additional considerations
described in paragraphs (2) through (5) of
subsection (g);
``(ii) uses the set of criteria established
in the initial report submitted under title III
of the Agricultural Risk Protection Act of
2000;
``(iii) achieves the distribution of funds
described in subparagraphs (B) and (C) of
subsection (g)(7); and
``(iv) takes into account any
recommendations that have been made by the
Advisory Committee;
``(B) the general status of cooperation and
research and development efforts carried out at each
agency with respect to biobased fuels and biobased
products, including a report from the Advisory
Committee on whether the points of contact are funding
proposals that are selected under subsection
(g)(3)(B)(iii); and
``(C) the plans of the Secretary of Energy and the
Secretary of Agriculture for addressing concerns raised
in the report, including concerns raised by the
Advisory Committee.
``(2) Updates.--The Secretary and the Secretary of Energy
shall update the Vision and Roadmap documents prepared for
Federal biomass research and development activities.
``(3) Management plan.--The Secretary shall every five
years, in consultation with the Secretary of Energy, submit to
Congress a detailed management plan for the implementation of
this section. The management plan shall include--
``(A) consideration of the contribution of the
section towards achieving the objectives referred to in
paragraphs (2) and (3) of subsection (g) and in
achieving the goals of the biomass program of the
Department of Energy;
``(B) consideration of input solicited from the
Advisory Committee, State, and private sources; and
``(C) specific and quantifiable near and long-term
goals.
``(j) Funding.--
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary of Agriculture shall make available
to carry out this section--
``(A) $35,000,000 for fiscal year 2008;
``(B) $60,000,000 for fiscal year 2009;
``(C) $75,000,000 for fiscal year 2010;
``(D) $100,000,000 for fiscal year 2011; and
``(E) $150,000,000 for fiscal year 2012.
``(2) Additional funding.--In addition to amounts
transferred under paragraph (1), there are authorized to be
appropriated to carry out this section $200,000,000 for each of
fiscal years 2006 through 2015.''.
(b) Repeal.--Title III of the Agricultural Risk Protection Act of
2000 (Public Law 106-224) is hereby repealed.
(c) Management Plan Submission Date.--The first management plan
required to be submitted under section 9008(i)(3) of the Biomass
Research and Development Act of 2000, as added by subsection (a), shall
be submitted not later than 180 days after the date of the enactment of
this Act.
SEC. 9007. ADJUSTMENTS TO THE BIOENERGY PROGRAM.
Section 9010 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 8108) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking
``and'';
(ii) in subparagraph (B), by striking the
final period and inserting a semicolon; and
(iii) by adding at the end the following
new subparagraphs:
``(C) production of heat and power at a biofuels
plant;
``(D) biomass gasification;
``(E) hydrogen made from cellulosic commodities for
fuel cells;
``(F) renewable diesel;
``(G) such other items as the Secretary considers
appropriate.'';
(B) by striking paragraph (3) and inserting the
following:
``(3) Eligible feedstock.--
``(A) In general.--The term `eligible feedstock'
means--
``(i) any plant material grown or collected
for the purpose of being converted to energy
(including aquatic plants);
``(ii) any organic byproduct or residue
from agriculture and forestry, including mill
residues and pulping residues that can be
converted into energy;
``(iii) any waste material that can be
converted to energy and is derived from plant
material, including--
``(I) wood waste and residue;
``(II) specialty crop waste,
including waste derived from orchard
trees, vineyard crops, and nut crops;
or
``(III) other fruit and vegetable
byproducts or residues; or
``(iv) animal waste and byproducts.
``(B) Exclusion.--The term `eligible feedstock'
does not include corn starch.'';
(C) in paragraph (4), by striking ``an eligible
commodity'' and inserting ``eligible feedstock''; and
(D) by adding at the end the following new
paragraph:
``(5) Renewable diesel.--The term `renewable diesel' means
any type of biobased renewable fuel derived from plant or
animal matter that may be used as a substitute for standard
diesel fuel and meets the requirements of an appropriate
American Society for Testing and Material standard. Such term
does not include any fuel derived from coprocessing an eligible
feedstock with a feedstock that is not biomass.'';
(2) in subsection (b)--
(A) in paragraph (1)--
(i) by striking ``The Secretary shall
continue'' and all that follows through ``the
Secretary makes'' and inserting ``The Secretary
shall make''; and
(ii) by striking ``eligible commodities''
and inserting ``eligible feedstock'';
(B) in paragraph (2)(B), by striking ``eligible
commodities'' and inserting ``eligible feedstock'';
(C) in paragraph (3), by striking subparagraphs (B)
and (C) and inserting the following:
``(B) Priority.--In making payments under this
paragraph, the Secretary shall give priority to
contracts by considering the factors referred to in
section 9003(e)(2)(B).'';
(D) by striking paragraph (6) and inserting the
following:
``(6) Limitation.--The Secretary may limit the amount of
payments that may be received by an eligible producer under
this section as the Secretary considers appropriate.''; and
(E) by adding at the end the following new
paragraph:
``(8) Renewal of contracts.--When considering the renewal
of a contract under this section, the Secretary shall review
such contract to determine whether the production of bioenergy
at the facility under contract is economically viable and
reconsider the need for the contract based on that
determination.''; and
(3) by striking subsection (c) and inserting the following:
``(c) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary of Agriculture shall use to carry out this section--
``(1) $225,000,000 for fiscal year 2008;
``(2) $250,000,000 for fiscal year 2009;
``(3) $275,000,000 for fiscal year 2010;
``(4) $300,000,000 for fiscal year 2011; and
``(5) $350,000,000 for fiscal year 2012.''.
SEC. 9008. RESEARCH, EXTENSION, AND EDUCATIONAL PROGRAMS ON BIOBASED
ENERGY TECHNOLOGIES AND PRODUCTS.
(a) Western Insular Pacific Center.--Section 9011(d) is amended by
adding at the end the following new paragraph:
``(6) Western insular pacific center.--A western insular
pacific center 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.''.
(b) Authorization of Appropriations.--Section 9011(j)(1)(C) of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8109(j)(1)(C))
is amended by striking ``2010'' and inserting ``2012''.
SEC. 9009. ENERGY COUNCIL OF THE DEPARTMENT OF AGRICULTURE.
Title IX of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 8101 et seq.) is further amended by adding at the end the
following new section:
``SEC. 9012. ENERGY COUNCIL OF THE DEPARTMENT OF AGRICULTURE.
``(a) In General.--The Secretary of Agriculture shall establish an
energy council in the Office of the Secretary (in this section referred
to as the `Council') to coordinate the energy policy of the Department
of Agriculture and consult with other departments and agencies of the
Federal Government.
``(b) Membership.--
``(1) In general.--The Secretary shall appoint the members
of the Council from among the staff of the agencies and mission
areas of the Department of Agriculture with responsibilities
relating to energy programs or policies.
``(2) Chair.--The chief economist and the Under Secretary
for Rural Development of the Department of Agriculture shall
serve as the Chairs of the Council.
``(c) Duties of Office of Energy Policy and New Uses.--The Office
of Energy Policy and New Uses of the Department of Agriculture shall
support the activities of the Council.''.
SEC. 9010. FARM ENERGY PRODUCTION PILOT PROGRAM.
Title IX of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 8101 et seq.) is further amended by adding at the end the
following new section:
``SEC. 9013. FARM ENERGY PRODUCTION PILOT PROGRAM.
``(a) Program.--The Secretary of Agriculture shall establish a
pilot program to provide grants to farmers for the purpose of
demonstrating the feasibility of making a farm energy neutral using
existing technologies.
``(b) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for fiscal years 2008
through 2012.''.
SEC. 9011. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE.
Title IX of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 8101 et seq.) is further amended by adding at the end the
following new section:
``SEC. 9014. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE.
``(a) Grant Authority.--
``(1) In general.--The Secretary of Agriculture (in this
section referred to as the `Secretary') may make grants in
accordance with this section to enable eligible rural
communities to substantially increase their energy self-
sufficiency.
``(2) Eligible rural community defined.--In this section,
the term `eligible rural community' means a community that has
a population of fewer than 25,000 individuals, and is not
located in a metropolitan statistical area (as defined by the
Bureau of the Census).
``(b) Applications.--
``(1) In general.--A community desiring to receive a grant
under this section shall submit to the Secretary an application
for the grant, which contains a description of how the
community would use the grant to develop an integrated
renewable energy system to substantially increase its energy
self-sufficiency.
``(2) Integrated renewable energy system.--In paragraph
(1), the term `integrated renewable energy system' includes--
``(A) the use of biofuels;
``(B) the use of biomass to produce electricity;
``(C) the use of animal manure to produce biogas as
a substitute for natural gas;
``(D) the use of new technologies to provide highly
energy efficient lighting, buildings, or vehicles;
``(E) the use of wind power to produce electricity
and hydrogen; and
``(F) the use of solar energy.
``(c) Consideration of Applications.--
``(1) Evaluation.--In making grants under this section, the
Secretary shall evaluate applications based on their ability to
demonstrate--
``(A) integration of different renewable energy
sources at lowest total cost;
``(B) integration of different renewable energy
sources with greatest potential for commercialization;
and
``(C) development of best practices, and models for
viable rural energy self-sufficiency.
``(2) Preference.--In making grants under this section, the
Secretary shall give preference to those which propose a
project developed or carried out in coordination with--
``(A) universities or their non-profit foundations;
``(B) Federal, State, or local government agencies;
``(C) public or private power generation entities;
or
``(D) government entities with responsibility for
water or natural resources.
``(d) Grants.--
``(1) Cost-sharing.--The amount of a grant under this
section with respect to an application shall not exceed 75
percent of the cost of the activities described in the
application.
``(2) Number of grants per year.--The Secretary may make
not more than 5 grants under this section in each fiscal year.
``(e) Use of Grants.--A community to which a grant is made under
this section shall use the grant to develop an integrated renewable
energy system to improve the energy efficiency of the community, and
shall document any energy savings resulting from the use of the grant.
``(f) Report to the Congress.--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 document the best practices and approaches used by grantees
receiving funds under this section.
``(g) Limitations on Authorization of Appropriations.--For grants
under this section, there are authorized to be appropriated to the
Secretary not more than $5,000,000 for fiscal year 2008, and such sums
as may be necessary for fiscal years 2009 through 2012.''.
SEC. 9012. AGRICULTURAL BIOFUELS FROM BIOMASS INTERNSHIP PILOT PROGRAM.
Title IX of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 8101 et seq.) is further amended by adding at the end the
following new section:
``SEC. 9015. AGRICULTURAL BIOFUELS FROM BIOMASS INTERNSHIP PILOT
PROGRAM.
``(a) Establishment.--The Secretary of Agriculture shall establish
a structured, academically-oriented internship pilot program (in this
section referred to as the `Program') to provide students from
universities in California, Iowa, Missouri, Georgia, Minnesota, and
other states with substantial farm-based economies or universities with
fields of study capable of developing renewable energy technology or
policy with the opportunity to work within the Department of
Agriculture, Congress and legislative branch agencies, other Federal
departments and agencies, corporations, and nonprofit institutions on
matters pertaining to policies regarding renewable energy, including
the conversion of biomass and other agricultural products to produce
ethanol and other biofuels.
``(b) Eligibility.--To be eligible for an internship under
subsection (a) a student shall--
``(1) be a third or fourth year undergraduate student or a
graduate student at an accredited college or university in
California, Iowa, Missouri, Georgia, Minnesota, or another
State with a substantial farm-based economy, or at a university
with fields of study capable of developing renewable energy
technology or policy (including agriculture-related studies,
chemistry, environmental sciences, bioengineering,
biochemistry, natural resources, and public policy), that
commits matching funds in accordance with subsection (g);
``(2) be a United States citizen;
``(3) be pursuing an undergraduate or graduate program in
agriculture and related supporting subjects with direct
relevance to the subject of biorefinery, biofuels, and
renewable energy; and
``(4) meet any other conditions or requirements that the
Secretary considers necessary.
``(c) Priorities of Internship Pilot Program.--In administering the
Program (including in the selection of students to participate in the
Program), the Secretary shall prioritize the following activities and
placements:
``(1) Structured internship experiences that feature
direct, hands-on assistance to policy makers engaged in the
development and implementation of agriculture and related
supporting policies and legislation, with direct relevance to
the subject of biorefinery, biofuels, and renewable energy.
``(2) Internship and academic seminar programs that provide
a combination of workforce training, experiential education,
and leadership development designed specifically for the
Department of Agriculture and Congress, with regard to
agriculture-based biorefinery, biofuels, and related renewable
energy policies.
``(3) Establishment of regional and state networks that
partner with the agricultural business, government and academic
communities to enhance the prospects for providing financial
assistance to students, particularly minority students, from
colleges and universities in each participating State who are
from economically disadvantaged backgrounds.
``(4) Internship and academic seminar programs that focus
on agriculture-based research, development, and policies
addressing new technologies to enhance agriculture production
and enhanced economic development in the agriculture sector of
the United States.
``(d) Administration of the Pilot Program.--The Secretary, in
consultation with other executive and legislative branch officials,
shall administer the Program. The Secretary may engage the services of
an experienced, nonprofit, nonpartisan professional internship and
academic seminar organization with extensive experience in developing
and carrying out Washington-based or other State-based internship
programs and State-based financial assistance initiatives for interns
to assist in carrying out the Program.
``(e) Scholarships and Other Assistance for Internships.--The
Secretary may make available to undergraduate and graduate students
participating in the Program scholarships or other types of financial
assistance, including funds to cover the cost of housing, per diem
living expenses, transportation, tuition and other educational
expenses, and related costs, that would allow participation by eligible
undergraduate and graduate students from economically-disadvantaged
backgrounds within the Program States.
``(f) Longitudinal Studies and Reporting Requirements.--
``(1) Longitudinal studies and evaluation of internship
program.--In developing and implementing the Program, the
Secretary shall carry out such longitudinal studies and program
evaluations as he or she deems appropriate to ensure that the
program is administered in a cost-effective manner and has
specific milestones, objectives, and results quantified with
regard to such Program.
``(2) Reporting requirements.--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 periodic reports regarding the development and
implementation of the Program, including the longitudinal
studies and evaluations required under paragraph (1).
``(g) State Matching Requirement.--As a condition of receiving an
internship under the Program, the State in which the student receiving
the internship is pursuing an undergraduate or graduate degree shall
provide matching funds in the amount of one dollar for every two
dollars provided by the Secretary under the Program.
``(h) Federal Contribution Limit.--The Secretary may not expend
more than $200,000 in any fiscal year to provide internships to
students pursuing an undergraduate or graduate degree in any particular
State.
``(i) Application of Funds.--The Secretary shall, to the maximum
extent practicable, use funds made available under subsection (j) to
provide scholarships and the other forms of financial assistance
described in subsection (e) directly attributable to the participation
in the Program by students from rural, economically-disadvantaged
backgrounds.
``(j) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out this
section.''.
SEC. 9013. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRODUCERS.
Title IX of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 8101 et seq.) is further amended by adding at the end the
following new section:
``SEC. 9016. 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 fiscal
years 2008 through 2012, the Secretary shall purchase
eligible commodities from eligible entities and sell
such commodities to bioenergy producers for the purpose
of producing bioenergy in a manner that ensures that
156 of the Federal Agricultural 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 fiscal 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.--Not later than September 1,
2007, and each September 1 thereafter through fiscal
year 2011, the Secretary shall provide notice to
eligible entities and bioenergy producers of the
quantity of eligible commodities that shall be made
available for purchase and sale for the subsequent
fiscal year under this section.
``(B) Reestimates.--Not later than the first day of
each of the second through fourth quarters of each of
fiscal years 2008 through 2012, the Secretary shall
reestimate the quantity of eligible commodities
determined under subparagraph (A), and provide notice
and make purchases and sales based on such reestimates.
``(3) Commodity credit corporation inventory.--To the
extent that an eligible commodity is owned and held in
inventory by the Commodity Credit Corporation (accumulated
pursuant to the program authorized under section 156 of the
Federal Agriculture Improvement and Reform Act (7 U.S.C.
7272)), the Secretary shall sell such commodity to bioenergy
producers under this section.
``(4) Transfer rule; storage fees.--
``(A) General transfer rule.--Except as provided in
subparagraph (C), the Secretary shall ensure that
bioenergy producers that purchase eligible commodities
pursuant to this subsection take possession of such
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 greatest extent practicable, carry out this
subsection in a manner that ensures no storage
fees are paid by the Commodity Credit
Corporation in the administration of this
subsection.
``(ii) Exception.--Clause (i) shall not
apply with respect to any commodities owned and
held in inventory by the Commodity Credit
Corporation (accumulated pursuant to the
program 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 such 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 such
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, such
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. 9014. BIOMASS INVENTORY REPORT.
(a) Inventory Required.--The Secretary of Agriculture shall conduct
an inventory of biomass resources on a county-by-county basis.
(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 a report
containing--
(1) the results of the inventory conducted under subsection
(a); and
(2) an estimate of the amount of unused crop land in the
United States that could be used for dedicated energy crops.
(c) Biomass Resources Defined.--In this section, the term ``biomass
resource'' has the meaning given the term ``eligible commodity'' in
section 9010(a)(3) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 8108(a)(3)).
SEC. 9015. FUTURE FARMSTEADS PROGRAM.
(a) Establishment.--The Secretary of Agriculture shall establish a
program to equip, in each of 5 regions of the country chosen to
represent different farming practices, a farm house and its surrounding
fields, facilities, and forested areas with technologies to--
(1) improve farm energy production and energy use
efficiencies;
(2) provide working examples to farmers; and
(3) serve as an education, demonstration, and research
facility that will teach graduate students whose focus of
research is related to either renewable energy or energy
conservation technologies.
(b) Goals.--The goals of the program established under subsection
(a) shall be to--
(1) advance farm energy use efficiencies and the on-farm
production of renewable energies, along with advanced
communication and control technologies with the latest in
energy capture and conversion techniques, thereby enhancing
rural energy independence and creating new revenues for rural
economies;
(2) accelerate private sector and university research into
the efficient on-farm production of renewable fuels and help
educate the farming industry, students, and the general public;
and
(3) accelerate energy independence, including the
production and the conservation of renewable energies on farms.
(c) Collaboration Partners.--The program under this section shall
be carried out in partnership with regional land grant institutions,
agricultural commodity commissions, biofuels companies, sensor and
controls companies, and internet technology companies.
(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out this section.
SEC. 9016. SENSE OF CONGRESS ON RENEWABLE ENERGY.
It is the sense of Congress that--
(1) energy demand in the United States is projected to
increase by more than 30 percent over the next two decades;
(2) increased production of renewable energy and growth of
its infrastructure would assist the United States in meeting
the growing energy demand;
(3) continued, and even accelerated, development of
renewable energy inputs and technologies provide numerous
benefits to the United States, including improved national
security and economic growth;
(4) while it should be a priority of the Federal Government
to continue to promote policies and incentives to stimulate
growth and development of renewable energy infrastructure, it
should be recognized that the marketplace is also an important
instrument to determine which renewable energy sources and
technologies will provide the most efficient and effective
energy production;
(5) renewable energy inputs and technology must be
available in abundant quantities and provide energy at
competitive prices in a reliable manner for the American
consumer; and
(6) it is in the interest of the United States to diversify
its energy portfolio and increase the energy independence of
the United States by further developing alternative forms of
energy.
SEC. 9017. BIODIESEL FUEL EDUCATION PROGRAM.
Section 9004(d) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 8104(d)) is amended to read as follows:
``(d) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary shall make available to carry out this section $2,000,000
for each of fiscal years 2008 through 2012.''.
SEC. 9018. BIOMASS ENERGY RESERVE.
Title IX of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 8101 et seq.) is amended by adding at the end the following new
section:
``SEC. 9017. BIOMASS ENERGY RESERVE.
``(a) Purpose.--The purpose of this section is to establish a
biomass energy reserve--
``(1) to encourage production of dedicated energy crops in
a sustainable manner that protects the soil, air, water, and
wildlife of the United States; and
``(2) to provide financial and technical assistance to
owners and operators of eligible cropland to produce dedicated
energy crops and crop mixes of suitable quality and in
sufficient quantities to support and induce development and
expansion of the use of the crop for--
``(A) bioenergy;
``(B) power or heat generation to supplement or
replace nonbiobased energy sources; or
``(C) biobased products to supplement or replace
non biobased products;
``(3) to establish biomass energy reserve project areas;
and
``(4) to provide financial and technical assistance to
owners and operators for harvesting, storing, and transporting
cellulosic material.
``(b) 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) BER.--The term `BER' means the biomass energy reserve
established under this section.
``(3) BER project area.--The term `BER project area' means
an area that--
``(A) has eligible cropland that--
``(i) is owned or operated by eligible
participants; and
``(ii) has specified boundaries that are
submitted to the Secretary by eligible
participants and subsequently approved by the
Secretary; and
``(B) is physically located within a 50-mile radius
of a bioenergy facility.
``(4) Conservation reserve program.--The term `conservation
reserve program' means the conservation reserve program
established under subchapter B of chapter 1 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et
seq.).
``(5) Contract acreage.--The term `contract acreage' means
eligible cropland that is covered by a BER contract entered
into with the Secretary.
``(6) Eligible applicant.--The term `eligible applicant'
means--
``(A) a collective group of owners and operators
producing or proposing to produce eligible dedicated
energy crops;
``(B) an energy or agricultural company or
refinery; and
``(C) an Agricultural Innovation Center established
pursuant to section 6402 of the Farm Security and Rural
Investment Act of 2002 (Public Law 107-171; 116 Stat.
426; 7 U.S.C. 1621 note).
``(7) Eligible cropland.--
``(A) In general.--The term `eligible cropland'
means land that the applicable county committee of the
Farm Service Agency determines--
``(i) is currently being tilled for the
production of a crop for harvest; or
``(ii) is not currently being tilled but
has been tilled in a prior crop year and is
suitable for production of an eligible
dedicated energy crop.
``(B) Exclusions.--The term `eligible cropland'
does not include--
``(i) Federally-owned land;
``(ii) land enrolled in--
``(I) the conservation reserve
program;
``(II) the grassland reserve
program; or
``(III) the wetlands reserve
program; and
``(iii) land with greater than 50 percent
cover of native nonwoody vegetation or forest
land, as of the date of enactment of this
section.
``(8) Eligible dedicated energy crop.--
``(A) In general.--The term `eligible dedicated
energy crop' means any crop native to the United
States, or another crop, as determined by the
Secretary, grown specifically to provide raw materials
for--
``(i) conversion to liquid transportation
fuels or chemicals through biochemical or
thermochemical processes; or
``(ii) energy generation through
combustion, pyrolysis, gasification, cofiring,
or other technologies, as determined by the
Secretary.
``(B) Exclusions.--The term `eligible dedicated
energy crop' does not include--
``(i) any crop that is eligible for
payments under title I or a successor 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.
``(9) Eligible participant.--The term `eligible
participant' means an owner or operator of contract acreage
that is physically located within a BER project area.
``(10) Federally-owned land.--The term `Federally-owned
land' means land owned by--
``(A) the Federal Government (including any
department, instrumentality, bureau, or agency of the
Federal Government); or
``(B) any corporation whose stock is wholly owned
by the Federal Government.
``(11) Forest land.--The term `forest land' means an
ecosystem that is at least 1 acre in size (including timberland
and woodland) and that (as determined by the Secretary)--
``(A) is characterized by dense and extensive tree
cover;
``(B) contains, or once contained, at least 10
percent tree crown cover; and
``(C) is not developed and planned for exclusive
nonforest resource use.
``(12) Grassland reserve program.--The term `grassland
reserve program' means the grassland reserve program
established under subchapter C of chapter 2 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C. 3838n et
seq.).
``(13) Operator.--The term `operator' means an individual,
entity, or joint operation that is in control of the farming
operations on a farm during the applicable crop year.
``(14) Owner.--
``(A) In general.--The term `owner' means a person
that has legal ownership of eligible cropland.
``(B) Inclusion.--The term `owner' includes--
``(i) a person that is buying eligible
cropland under a contract for deed; and
``(ii) a person that has a life estate in
eligible cropland.
``(15) Qualified organization.--The term `qualified
organization' means--
``(A) an Agricultural Innovation Center established
pursuant to section 6402 of the Farm Security and Rural
Investment Act of 2002 (Public Law 107-171; 116 Stat.
426; 7 U.S.C. 1621 note) with significant experience in
the field of renewable energy, as determined by the
Secretary; or
``(B) in a region not served by a center referred
to in subparagraph (A)--
``(i) an entity with significant experience
in the field of renewable energy that is
geographically located in such region, as
determined by the Secretary; or
``(ii) an accredited college or university
with experience providing technical assistance
in the field of renewable energy that is
geographically located in such region, as
determined by the Secretary.
``(16) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``(17) Socially disadvantaged farmer or rancher.--The term
`socially disadvantaged farmer or rancher' means a farmer or
rancher who is a member of a socially disadvantaged group (as
defined in section 355(e) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2003(e))).
``(18) Wetlands reserve program.--The term `wetlands
reserve program' means the wetlands reserve program established
under subchapter C of chapter 1 of subtitle D of title XII of
the Food Security Act of 1985 (16 U.S.C. 3837 et seq.).
``(c) Establishment.--Not later than 90 days after the date of
enactment of this section, the Secretary shall establish a biomass
energy reserve in accordance with this section. The Secretary shall
ensure the purposes in subsection (a) are met by including in the
reserve projects that include a variety of harvest and post-harvest
practices, including stubble height, unharvested strips (including
strips for wildlife habitat), and varying harvest dates and a variety
of monoculture and polyculture crop mixes, as appropriate, by project
area.
``(d) Proposals for BER Project Areas.--
``(1) Selection of qualified organizations.--
``(A) In general.--The Secretary shall select not
more than 10 qualified organizations to assist--
``(i) eligible applicants in submitting
proposals under paragraph (2); and
``(ii) the Secretary in selecting BER
project areas.
``(B) Region.--The Secretary shall select not more
than 1 qualified organization to assist eligible
applicants and the Secretary in any particular region
of the United States, as determined by the Secretary.
``(C) Funding.--The Secretary shall provide each
qualified organization selected under paragraph (1) not
more than $300,000 to carry out this paragraph.
``(2) Consultation with qualified organization.--An
eligible applicant may consult with and submit to a qualified
organization a written proposal that--
``(A) identifies the eligible cropland that will be
a part of the proposed BER project area; and
``(B) indicates a strong likelihood that the
proposed BER project area will generate a sufficient
quantity of biomass from eligible dedicated energy
crops and acres or other sources to supply an existing
bioenergy facility.
``(3) Minimum requirements.--The written proposal for a
proposed BER project area shall include--
``(A) a description of the eligible cropland of
each eligible participant that will participate in the
proposed BER project area, including--
``(i) the quantity of eligible cropland of
each eligible participant;
``(ii) the physical location of the
eligible cropland;
``(iii) the 1 or more eligible dedicated
energy crops that will be produced on the
eligible cropland; and
``(iv) the type of land use or crop that
will be displaced by the eligible dedicated
energy crop;
``(B)(i) the name, if available, and type,
location, and description of the bioenergy facility
that will use the eligible dedicated energy crops to be
produced in the proposed BER project area; and
``(ii) a letter of commitment from a bioenergy
facility that the facility will use the eligible
dedicated energy crops intended to be produced in the
proposed BER project area;
``(C) a general analysis of the anticipated local
economic impact of the proposed BER project; and
``(D) any additional information needed to
determine the eligibility for, and ranking of, the
proposal, as determined by the Secretary.
``(4) Individual owners and operators.--A project area
proposal may not submit an individual proposal to participate
in the BER.
``(5) Eligibility criteria for ber project areas.--The
Secretary shall establish a system for ranking BER project
areas based on the following criteria:
``(A) The probability that the eligible dedicated
energy crops proposed to be produced in the proposed
BER project area will be used for the purposes of the
BER.
``(B) The inclusion of adequate potential
feedstocks and suitable placement with respect to the
bioenergy facility.
``(C) The potential for a positive economic impact
in the proposed BER project area.
``(D) The availability of the ownership of the
bioenergy facility in the proposed BER project area to
producers and local investors.
``(E) The participation rate by beginning farmers
or ranchers or socially disadvantaged farmers or
ranchers.
``(F) The potential to improve soil conservation
and water quality, and enhance wildlife habitat, when
compared to existing land uses.
``(G) The variety of agronomic conditions the
proposed eligible dedicated energy crops will be grown
within a project area.
``(H) The variety of harvest and post harvest
practices, including stubble height, unharvested strips
(including strips for wildlife habitat), and varying
harvest dates.
``(I) The variety of monoculture and polyculture
crop mixes, as appropriate, by project area.
``(6) Selection of projects.--
``(A) Ranking; submission to secretary.--Each
qualified organization selected by the Secretary under
paragraph (1) shall rank proposals submitted to such
qualified organization under paragraph (2) using the
system for ranking established by the Secretary under
paragraph (6) and shall submit to the Secretary up to
five of the highest ranked applications.
``(B) Secretary selection.--The Secretary shall
authorize not less than one proposal submitted to the
Secretary from each qualified organization under
subparagraph (A).
``(e) Forest Biomass Planning Grants.--
``(1) In general.--The Secretary shall provide forest
biomass planning assistance grants to private landowners to
develop forest stewardship plans that involve sustainable
management of biomass from forest land of the private
landowners that will preserve diversity, soil, water, or
wildlife values of the land, while ensuring a steady supply of
biomass material, through--
``(A) State forestry agencies, in consultation with
State wildlife agencies; and
``(B) technical service provider arrangements with
third-parties.
``(2) Limitation.--The total amount of funds used to carry
out this subsection shall not exceed $5,000,000.
``(f) Duration of Contract.--
``(1) In general.--Subject to paragraph (2), for purposes
of carrying out the BER, the Secretary shall enter into
contracts of 5 years.
``(2) Early termination.--The Secretary may terminate a
contract early if the Secretary determines that--
``(A) contract acreage will not be used to produce
an eligible dedicated energy crop;
``(B) a material breach of the contract has
occurred;
``(C) the owner or operator has died; or
``(D) continuation of the contract will cause undue
economic hardship.
``(g) Contract Acreage Requirements.--
``(1) In general.--On approval of a BER project area by the
Secretary, each eligible participant in the BER project area
shall enter into a contract with the Secretary that is
consistent with the BER.
``(2) Additional eligible participants.--The Secretary may
add eligible participants to a BER project area after approval
of the BER project area.
``(3) Conservation practices.--To ensure the sustainability
of farm operations and the protection of soil, air, water and
wildlife, the Secretary shall include such terms and conditions
in a contract entered into under paragraph (1) as the Secretary
considers necessary.
``(4) Purposes.--
``(A) In general.--Except as provided in
subparagraph (B), to be eligible to participate in the
BER, an eligible participant may use eligible dedicated
energy crops produced on contract acreage only for the
purposes described in subsection (a).
``(B) Personal use.--During the period before the
commercial viability of a bioenergy facility, an
eligible participant may use eligible dedicated energy
crops produced by the eligible participant on contract
acreage for personal use.
``(C) Seed production.--During the period before
the commercial viability of a bioenergy facility, an
eligible participant may harvest and sell seed produced
on contract acreage.
``(5) Requirements.--To be eligible to participate in the
BER, during the term of the BER contract, an eligible
participant shall comply with--
``(A) 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
``(B) the wetland conservation requirements of
subtitle C of title XII of that Act (16 U.S.C. 3821 et
seq.).
``(h) Additional Eligible Biomass.--
``(1) In general.--The Secretary may allow on land that is
enrolled in the conservation reserve program and located within
the BER project area the harvesting of biomass--
``(A) in exchange for a reduction of an applicable
annual payment in an amount to be determined by the
Secretary;
``(B) in accordance with an approved conservation
reserve program plan, including mid-contract management
and forestry maintenance activities; and
``(C) in a manner that ensures that biomass harvest
activities occur outside the official nesting and brood
rearing season for those plans.
``(i) Duties of Secretary.--The Secretary shall--
``(1) establish and administer the BER;
``(2) authorize establishment of BER project areas for the
purposes of the BER described in subsection (a);
``(3) develop procedures--
``(A) to monitor the compliance of eligible
participants that have land enrolled in the BER with
the requirements of the BER;
``(B) to measure the performance of the BER; and
``(C) to demonstrate whether the long-term eligible
dedicated energy crop production goals are being
achieved.
``(4) enter into a written contract with each eligible
participant that elects to participate in the BER in a BER
project area;
``(5) not enter into a contract under the BER with an
individual owner or operator unless the land of the eligible
participant is physically located in an approved BER project
area; and
``(6) provide all payments under the contract directly to
the eligible participant.
``(j) Contracts.--A contract entered into between the Secretary and
an eligible participant under the BER shall include, at a minimum,
terms that cover--
``(1) requirements for the eligible participant in carrying
out the contract, including requirements described in
subsections (f), (g), and (l);
``(2) termination provisions;
``(3) payment terms and amounts to be provided on an annual
basis;
``(4) the sales or transfer of contract acreage;
``(5) the modification of the contract;
``(6) the maximum quantity of contract acreage and an
estimated schedule for how much eligible cropland will be
enrolled each contract year; and
``(7) any additional terms the Secretary considers
appropriate.
``(k) Payments.--
``(1) In general.--The Secretary shall provide payments
directly to eligible participants who enter into contracts
described in subsection (j) in accordance with such subsection.
``(2) Establishment payments.--
``(A) In general.--The Secretary shall provide to
an eligible participant who enters into a BER contract
an establishment payment in an amount equal to the
costs of establishing an eligible dedicated energy crop
on the contract acreage covered by the contract.
``(B) Eligible establishment payments.--The costs
for which an eligible owner may receive an
establishment payment under this paragraph include--
``(i) the cost of seeds and stock; and
``(ii) the cost of planting the crop.
``(3) Rental payments.--
``(A) In general.--The Secretary shall make annual
rental payments to an eligible participant who enters
into a BER contract.
``(B) Period.--An eligible participant shall
receive rental payments for a period of not more than 5
years after entering into a BER contract with the
Secretary on contract acreage.
``(C) Reduction.--The Secretary shall reduce rental
payments under (A) by an amount determined to be
appropriate by the Secretary, if an eligible dedicated
energy crop is harvested in accordance with subsection
(g)(4).
``(l) Information Sharing.--
``(1) In general.--Owners and operators of a farm entering
into a contract with the Secretary under this section shall
agree 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 bioenergy crops and
the development of biorefinery technology; and
``(2) Best practices database.--Subject to section 1770 of
the Food Security Act of 1985 (7 U.S.C. 2276), the Secretary
shall make available to the public in a database format the
best practices information developed by the Secretary in
providing bioenergy assistance under this section.
``(m) Payments for Collecting, Harvesting, Storing, and
Transporting Biomass Produced on BER Contract Acreage, Agricultural
Waste Biomass, and Sustainably-Harvested Agricultural and Forest
Residues.--
``(1) In general.--Subject to paragraph (2), the Secretary
may provide matching payments at a rate of $1 for every $1 per
ton provided by the bioenergy facility, in an amount equal to
not more than $45 per ton for a period of two years--
``(A) to eligible participants for biomass produced
on BER contract acreage in exchange for a reduction of
the annual payment issued under subsection (k)(3), as
determined by the Secretary;
``(B) to any producer of agricultural waste biomass
or sustainably-harvested agricultural and forest
residues in the United States for the agricultural
waste or residue; and
``(C) for residue collected as a result of the
removal of noxious and invasive species, in accordance
with methods approved by the Secretary.
``(2) Forest land owner eligibility.--Owners of forest land
shall be eligible to receive payments under this subsection
only if such owners are acting pursuant to a forest stewardship
plan.
``(n) 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. 9019. FOREST BIOMASS FOR ENERGY.
Title IX of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 8101 et seq.) is further amended by adding at the end the
following new section:
``SEC. 9018. FOREST BIOMASS FOR ENERGY.
``(a) In General.--The Secretary of Agriculture, 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 this
program include the Forest Service (through Research and Development),
other Federal agencies, State and local governments, federally
recognized Indian tribes, land grant colleges and universities, and
private entities.
``(c) Priority for Project Selection.--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) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary shall make available to carry out this section
$15,000,000 for each of fiscal years 2008 through 2012.''.
SEC. 9019. COMMUNITY WOOD ENERGY PROGRAM.
(a) Findings.--Congress finds that--
(1) the United States' over-reliance on fossil fuel energy
has placed undue strain on the nation by compromising our
economy and national security;
(2) the United States' over-reliance on fossil fuel energy
has also created new strains on our natural systems, including
carbon emissions that contribute to climate change;
(3) transportation of energy, such as heating oil, adds to
carbon emissions associated with meeting our community energy
needs and therefore further feeds climate change;
(4) it is in the national interest to conserve energy and
support adoption of new local, sustainable, efficient, and
carbon neutral energy sources, such as wood energy, for
community energy needs;
(5) communities can save as much as 50 percent over natural
gas, 80 percent over propane, 80 percent over electric heat,
and 50 percent over oil heat by switching to wood energy for
heating schools and other public buildings;
(6) in fast growing communities of all sizes across the
United States, municipal and country-owned forest land is
playing an essential role in meeting many public needs and
could also be used to help support sustainable forestry and
local wood energy applications; and
(7) the rapidly expanding base of private forest land
owners nationwide includes many individuals with no experience
in forest stewardship who could be given technical assistance
to provide locally sourced wood supply through sustainable
forest management for local wood energy applications.
(b) Purpose.--The purpose of this section is to provide grants for
community wood energy systems that are intended to--
(1) meet community energy needs with reduced carbon
intensity versus fossil fuel systems;
(2) promote energy conservation and development of new
renewable energy sources;
(3) aid local budgets by reducing municipal and county
energy costs;
(4) increase utilization of low value wood supplies and
waste, thereby strengthening the forest products economy for
the benefit of forest workers and private forest land owners;
and
(5) increase awareness of energy conservation and
consumption and the multiple-use values of forests among
community members, especially young people.
(c) Grant Program.--The Secretary of Agriculture, acting through
the Forest Service, shall establish a program to be known as the
Community Wood Energy Program to provide grants to State and local
governments to acquire community wood energy systems for public
buildings and to implement a community wood energy plan.
(d) Use in Public Buildings.--A State or local government receiving
a grant under subsection (c) shall use a community wood energy system
acquired in whole or in part with the use of grant funds for primary
use in a public facility owned by such State or local government.
(e) Limitation.--A community wood energy system acquired with grant
funds provided under subsection (c) shall not exceed an output of--
(1) 50,000,000 BTU per hour for heating; and
(2) 2 megawatts for electric power production.
(f) Community Wood Energy Plan.--Within 18 months of receiving
assistance under this section, communities shall utilize the technical
assistance of the State forester to create a community wood energy plan
identifying how local forests can be accessed in a sustainable manner
to help meet the wood supply needs of systems purchased under this
section.
(g) Matching Funds.--A State or local government receiving a grant
under subsection (c) shall contribute an amount of non-Federal funds
towards the acquisition of community wood energy systems that is at
least equal to the amount of grant funds received by such State or
local government.
(h) Community Wood Energy System Defined.--The term ``community
wood energy system'' includes single facility central heating, district
heating, combined heat and energy systems, and other related biomass
energy systems that service schools, town halls, libraries, and other
public buildings.
(i) Appropriation.--There are authorized to be appropriated such
sums as may be necessary to carry out this section.
SEC. 9020. SUPPLEMENTING CORN AS AN ETHANOL FEEDSTOCK.
(a) Research and Development Program.--The Secretary of Agriculture
shall establish a program to make grants of not to exceed $1,000,000
each to no more than 20 universities for a 3-year program of
demonstration of supplementing corn as an ethanol feedstock with sweet
sorghum and switchgrass.
(b) Program Goals.--The goals of the program under this section
shall be to--
(1) enhance agronomic efficiency of the crop on marginal
lands by--
(A) developing best management practices for
maintaining high yields while using less water and
nitrogen than corn;
(B) identifying and selecting plants with a high
sugar content; and
(C) developing cold-tolerant sweet sorghum
varieties to enable two crops to be grown per season;
(2) enhance ethanol processing potential in the crop by--
(A) developing a robust technology for centralized
ethanol production facilities that pair high-performing
sweet sorghum lines with different yeasts to produce
the best process for converting sweet sorghum juice
into ethanol;
(B) conducting process and chemical analyses of
sweet sorghum sap fermentation;
(C) introducing cellulosic hydrolyzing enzymes into
sweet sorghum to promote biomass conversion; and
(D) performing life-cycle analysis of sweet sorghum
ethanol, including analysis of energy yield,
efficiency, and greenhouse gas reduction;
(3) establish a production system optimized for the region
of the university conducting the research;
(4) improve sweet sorghum lines with higher sugar
production and performance with minimal agricultural inputs;
(5) optimize sugar fermentation using selected yeast
strains;
(6) develop sweet sorghum lines with improved cold
tolerance and cellulosic degradation; and
(7) develop agricultural models for predicting agricultural
performance and ethanol yield under various growing conditions.
(c) Award Criteria.--The Secretary shall award grants under this
section only to universities that--
(1) have access to multiple lines of sweet sorghum for
research; and
(2) are located in a State where sweet sorghum is
anticipated to grow well on marginal lands.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for carrying out this section
$20,000,000.
TITLE X--HORTICULTURE AND ORGANIC AGRICULTURE
Subtitle A--Honey and Bees
Sec. 10001. Annual report on response to honey bee colony collapse
disorder.
Subtitle B--Horticulture Provisions
Sec. 10101. Tree assistance program.
Sec. 10102. Specialty crop block grants.
Sec. 10103. Additional section 32 funds for purchase of fruits,
vegetables, and nuts to support domestic
nutrition assistance programs.
Sec. 10103A Additional section 32 funds to provide grants for the
purchase and operation of urban gardens
growing organic fruits and vegetables for
the local population.
Sec. 10104. Independent evaluation of Department of Agriculture
commodity purchase process.
Sec. 10105. Quality requirements for clementines.
Sec. 10106. Implementation of food safety programs under marketing
orders.
Sec. 10107. Inclusion of specialty crops in census of agriculture.
Sec. 10108. Maturity requirements for Hass avocados.
Sec. 10109. Mushroom promotion, research, and consumer information.
Sec. 10110. Fresh produce education initiative.
Subtitle C--Pest and Disease Management
Sec. 10201. Pest and disease program.
Sec. 10202. Multi-species fruit fly research and sterile fly
production.
Subtitle D--Organic Agriculture
Sec. 10301. National organic certification cost-share program.
Sec. 10302. Organic production and market data.
Sec. 10303. Organic conversion, technical, and educational assistance.
Subtitle E--Miscellaneous Provisions
Sec. 10401. Grant program to improve movement of specialty crops.
Sec. 10402. Authorization of appropriations for market news activities
regarding specialty crops.
Sec. 10403. Farmer marketing program.
Sec. 10404. National Clean Plant Network.
Subtitle A--Honey and Bees
SEC. 10001. ANNUAL REPORT ON RESPONSE TO HONEY BEE COLONY COLLAPSE
DISORDER.
The Secretary of Agriculture shall submit to Congress an annual
report describing the progress made by the Department of Agriculture in
investigating the cause or causes of honey bee colony collapse and in
finding appropriate strategies to reduce colony loss.
Subtitle B--Horticulture Provisions
SEC. 10101. TREE ASSISTANCE PROGRAM.
(a) Inclusion of Nursery Tree Growers.--
(1) Eligibility.--Section 10201 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8201) is amended--
(A) by redesignating paragraphs (3) and (4) as
paragraphs (4) and (5), respectively; and
(B) by inserting after paragraph (2) the following
new paragraph:
``(3) 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.''.
(2) Conforming amendments.--Subtitle C of title X of the
Farm Security and Rural Investment Act of 2002 is amended--
(A) in section 10202 (7 U.S.C. 8202)--
(i) in subsection (a), by inserting ``and
nursery tree growers'' after ``eligible
orchardists''; and
(ii) in subsection (b), by inserting ``or
nursery tree grower'' after ``eligible
orchardist''; and
(B) in section 10203 (7 U.S.C. 8203), by inserting
``and nursery tree growers'' after ``eligible
orchardists''.
(b) Annual Payment Limitation.--Section 10204(a) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 8204(a)) is amended
by striking ``$75,000'' and inserting ``$150,000 per year''.
(c) Applicability.--The amendments made by this section shall apply
with respect to any natural disaster occurring after the date of the
enactment of this Act for which assistance is provided by the Secretary
of Agriculture under the tree assistance program.
SEC. 10102. SPECIALTY CROP BLOCK GRANTS.
(a) Extension of Program.--Subsection (a) of section 101 of the
Specialty Crops Competitiveness Act of 2004 (Public Law 108-465; 7
U.S.C. 1621 note) is amended by striking ``2009'' and inserting
``2012''.
(b) Availability of Funds.--Subsection (i) of section 101 of the
Specialty Crops Competitiveness Act of 2004 is amended to read as
follows:
``(i) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary of Agriculture shall make grants under this section,
using--
``(1) $60,000,000 in fiscal year 2008;
``(2) $65,000,000 in fiscal year 2009;
``(3) $70,000,000 in fiscal year 2010;
``(4) $75,000,000 in fiscal year 2011; and
``(5) $95,000,000 in fiscal year 2012.''.
(c) Conforming Amendments.--Section 101 of the Specialty Crops
Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 1621 note) is
further amended--
(1) in subsection (a), by striking ``Subject to the
appropriation of funds to carry out this section'' and
inserting ``Using the funds made available under subsection
(i)'';
(2) in subsection (b), by striking ``appropriated pursuant
to the authorization of appropriations in'' and inserting
``made available under''; and
(3) in subsection (c), by striking ``Subject to the
appropriation of sufficient funds to carry out this subsection,
each'' and inserting ``Each''.
(d) 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''.
(e) 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''.
SEC. 10103. ADDITIONAL 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 in fiscal year 2008.
(2) $193,000,000 in fiscal year 2009.
(3) $199,000,000 in fiscal year 2010.
(4) $203,000,000 in fiscal year 2011.
(5) $206,000,000 in 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) Value Added Products.--The Secretary may consider offering
value-added products containing fruits, vegetables or nuts under this
section, taking into account--
(1) whether demand exists for the value-added product; and
(2) the interests of entities that receive fruits,
vegetables, and nuts under this section.
SEC. 10103A. ADDITIONAL SECTION 32 FUNDS TO PROVIDE GRANTS FOR THE
PURCHASE AND OPERATION OF URBAN GARDENS GROWING ORGANIC
FRUITS AND VEGETABLES FOR THE LOCAL POPULATION.
(a) Grants.--The Secretary of Agriculture may make grants to
eligible entities to assist in purchasing and operating organic gardens
or greenhouses in urban areas for growing fruits and vegetables. In
making such grants, the Secretary will ensure such fruits and
vegetables are sold to local grocery stores.
(b) Limitations.--Grants provided to any eligible entity under this
section may not exceed $25,000 for any given year.
(c) Eligible Entities.--
(1) Individuals.--An individual shall be eligible to
receive a grant under subsection (a) if the individual is a
resident of the neighborhood in which the urban garden or
greenhouse is located, or will be located.
(2) Cooperatives.--A cooperative shall be eligible to
receive a grant under subsection (a) if every individual member
or owner of the cooperative is a resident of the neighborhood
in which the urban garden or greenhouse is located, or will be
located.
(d) Selection of Eligible Entities.--The Secretary shall develop
criteria for the selection of eligible entities to receive grants under
this section.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $20,000,000 for fiscal year 2008
and for each fiscal year thereafter.
SEC. 10104. INDEPENDENT EVALUATION OF DEPARTMENT OF AGRICULTURE
COMMODITY PURCHASE PROCESS.
(a) Evaluation Required.--The Secretary of Agriculture shall
arrange to have performed an independent evaluation of the commodity
purchasing processes (and the statutory and regulatory authority
underlying such processes) used by the Department of Agriculture to
remove surplus commodities from the market and support commodity prices
and producer incomes, especially with regard to activities under
section 32 of the Act of August 24, 1935 (7 U.S.C. 612c) and the
importance of increasing purchases of specialty crops.
(b) Submission of Results.--Not later than one year after the date
of the enactment of this Act, the Secretary of Agriculture shall submit
to Congress a report on the results of the evaluation.
SEC. 10105. 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 first sentence by inserting
after ``nectarines,'' the following: ``clementines,''.
SEC. 10106. IMPLEMENTATION OF FOOD SAFETY PROGRAMS UNDER MARKETING
ORDERS.
Section 8c(6) of the Agricultural Adjustment Act (7 U.S.C.
608c(6)), reenacted with amendments by the Agricultural Marketing
Agreement Act of 1937, is amended by adding at the end the following:
``(K) In the case of an order related to a specialty crop (as such
term is defined in section 3(1) of the Specialty Crops Competitiveness
Act of 2004 (Public Law 108-465; 118 Stat. 3883)), authorizing the
implementation of quality-related food safety programs designed to
enhance the safety of the specialty crop and products derived from
specialty crops.''.
SEC. 10107. 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 by adding at the end the following new sentence:
``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 such term is defined in section 3(1) of
the Specialty Crops Competitiveness Act of 2004 (Public Law 108-465;
118 Stat. 3883)).''.
SEC. 10108. MATURITY REQUIREMENTS FOR HASS AVOCADOS.
Subtitle A of the Agricultural Marketing Act of 1946 is amended by
adding at the end the following new section:
``SEC. 209. MATURITY REQUIREMENTS FOR HASS AVOCADOS.
``(a) Minimum Percentage of Dry Matter.--Not later than 180 days
after the date of the enactment of the Farm, Nutrition, and Bioenergy
Act of 2007, the Secretary of Agriculture shall issue final regulations
to require that all Hass avocados sold to consumers in the United
States meet the minimum maturity standard of not less than 20.8 percent
dry matter.
``(b) Exceptions.--Subsection (a) and the regulations issued
pursuant to such subsection shall not apply to Hass avocados--
``(1) intended for consumption by charitable institutions;
``(2) intended for distribution by relief agencies;
``(3) intended for commercial processing into products; or
``(4) that the Secretary determines should not be subject
to such subsection or such regulations.
``(c) Use of Existing Inspectors.--The Secretary shall, to the
greatest extent practicable, use inspectors that inspect avocados for
compliance with section 8e of the Agricultural Adjustment Act (7 U.S.C.
608e-1), reenacted with amendments by the Agricultural Marketing
Agreement Act of 1937, to conduct inspections under this section.
``(d) Civil Penalties.--The Secretary may require any person who
violates this section or the regulations issued pursuant to this
section to--
``(1) forfeit to the United States a sum equal to the value
of the commodity at the time of violation, which forfeiture
shall be recoverable in a civil suit bought in the name of the
United States; or
``(2) on conviction, be fined not less than $50 or more
than $5,000 for each violation.
``(e) Diversion.--In the case of any Hass avocados that do not meet
the requirements of this section or the regulations issued pursuant to
this section, the Secretary may--
``(1) provide for the reinspection of the Hass avocados; or
``(2) authorize the diversion, export, or repacking of the
Hass avocados.
``(f) Fees.--The Secretary may prescribe and collect fees to cover
the costs of providing for the inspection of Hass avocados under this
section. All fees and penalties collected shall be credited to the
accounts that incur such costs and shall remain available until
expended without fiscal year limitation.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out this
section.''.
SEC. 10109. 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 (subtitle B
of title XIX of Public Law 101-624; 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 new subparagraph:
``(E) Additional members.--In addition to the
members appointed pursuant to paragraph (1), and
subject to the nine-member limit of members on the
council provided in such paragraph, the Secretary shall
appoint additional members to the council from a region
which attains additional pounds of production as
follows:
``(i) If a region's annual production is
greater than 110,000,000 pounds, but less than
or equal to 180,000,000 pounds, the region
shall be represented by one additional member.
``(ii) If a region's annual production is
greater than 180,000,000 pounds, but less than
or equal to 260,000,000 pounds, the region
shall be represented by two additional members.
``(iii) If a region's annual production is
greater than 260,000,000 pounds, the region
shall be represented by three additional
members.''.
(b) Powers and Duties of Council.--Section 1925(c) of the Mushroom
Promotion, Research, and Consumer Information Act of 1990 (subtitle B
of title XIX of Public Law 101-624; 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 new
paragraph (6):
``(6) to develop a program for good agricultural practices
and good handling practices for mushrooms;''.
SEC. 10110. FRESH PRODUCE EDUCATION INITIATIVE.
(a) Initiative Authorized.--The Secretary of Agriculture may carry
out a program to educate persons involved in the fresh produce industry
and the public about--
(1) scientifically proven practices for reducing
microbiological pathogens on fresh produce; and
(2) methods of reducing the threat of cross-contamination
of fresh produce through unsanitary handling practices.
(b) Cooperation.--The Secretary may carry out the program in
cooperation with public or private partners.
(c) Funding.--There are authorized to be appropriated such sums as
are necessary for each of fiscal years 2008 through 2012 to carry out
this section.
Subtitle C--Pest and Disease Management
SEC. 10201. PEST AND DISEASE PROGRAM.
(a) Establishment.--The Secretary of Agriculture shall establish a
program to--
(1) conduct early pest detection and surveillance
activities in cooperation with state departments of
agriculture;
(2) determine and prioritize pest and disease threats to
domestic production of specialty crops; and
(3) create an audit-based certification approach to protect
against the spread of plant pests and to facilitate the
interstate movement of plants and plant products.
(b) Early Pest Detection and Surveillance Improvement Program.--
(1) Cooperative agreements.--The Secretary of Agriculture
shall enter into cooperative agreements with State departments
of agriculture to provide grants to such State departments of
agriculture for early pest detection and surveillance
activities.
(2) Application.--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. The Secretary shall
notify applicants of the following:
(A) The requirements to be imposed on a department
of agriculture for auditing of, and reporting on, the
use of any funds provided by the Secretary under the
cooperative agreement.
(B) 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.
(C) The means of identifying pathways of pest
introductions.
(3) Use of funds.--
(A) Pest detection and surveillance activities.--A
State department of agriculture that receives funds
under this section shall use the funds to carry out
early pest detection and surveillance activities
approved by the Secretary to prevent the introduction
or spread of a pest.
(B) Subagreements.--A State department of
agriculture may use funds received under this section
to enter into subagreements with political subdivisions
in such State that have legal responsibilities relating
to agricultural pest and disease surveillance.
(4) Special funding considerations.--The Secretary shall
provide, subject to the availability of funds under subsection
(j), funds to a State department of agriculture that the
Secretary determines is in a State that has a high risk of
being affected by one or more pest, based on the following
factors:
(A) The number of international airports and
maritime facilities in that State.
(B) The volume of international passenger and cargo
entry into that State.
(C) The geographic location of that State and if
such location is conducive to agricultural pest and
disease establishment due to the climate or crop
diversity of that State.
(D) The types of agricultural commodities or plants
produced in that State and if the commodities or plants
produced are conducive to agricultural pest and disease
establishment due to the climate or crop diversity of
that State.
(E) Whether the Secretary has declared an emergency
in that State pursuant to section 442 of the Plant
Protection Act (7 U.S.C. 7772) due to an agricultural
pest or disease of Federal concern.
(F) Such other factors as the Secretary considers
appropriate.
(5) Cost-share.--
(A) Federal cost share; form of non-federal cost
share.--Except as provided in subparagraph (B), a
cooperative agreement entered into under paragraph (1)
shall provide that--
(i) the Federal share of carrying out the
cooperative agreement shall not exceed 75
percent of the total cost;
(ii) the non-Federal share of the cost of
carrying out the agreement may be provided in-
kind; and
(iii) in-kind costs may include indirect
costs as considered appropriate by the
Secretary.
(B) 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
paragraph (1) into consideration when deciding whether
to enter into a cooperative agreement with a State
department of agriculture.
(C) Special funding considerations.--The non-
federal share of carrying out paragraph (4) shall not
exceed 40 percent of the total costs of carrying out
such paragraph.
(6) Reporting requirement.--Not later than 180 days after
the date of completion of an early pest detection and
surveillance activity conducted by a State department of
agriculture using funds provided under this section, the
department of agriculture shall submit to the Secretary a
report that describes the purposes and results of the
activities, including any activities conducted pursuant to a
subagreement referred to in paragraph (3)(B).
(c) Threat Identification and Mitigation Program.--
(1) In general.--In conducting the program established
under subsection (a), the Secretary shall--
(A) develop risk assessments of the existing and
potential threat to the specialty crop industry in the
United States from pests and disease;
(B) prepare a list prioritizing pest and disease
threats to the specialty crop industry;
(C) develop action plans, in consultation with
State departments of agriculture and other State or
regional resource partnerships, that effectively
address pest and disease threats to the specialty crop
industry, including pathway analysis, domestic and
offshore mitigation measures, and comprehensive
exclusion measures at ports of entry and other key
distribution centers, in addition to strategies to
employ if a pest or disease is introduced;
(D) implement such action plans as soon as they are
developed to test the effectiveness of such action
plans and help prevent new foreign and domestic pest
and disease threats from being introduced or widely
disseminated in the United States; and
(E) collaborate with the nursery industry, research
institutions, and other appropriate entities to develop
a nursery pest risk management system to identify
nursery pests and diseases, prevent the introduction,
establishment, and spread of such pests and diseases,
and reduce the risk of, prioritize, mitigate, and
eradicate such pests and diseases.
(2) Reports.--Not later than one year after the date of the
enactment of this Act, and annually thereafter, the Secretary
shall update and submit to Congress the priority list and
action plans described in paragraph (1), including an
accounting of funds expended on the action plans.
(d) Audit-Based Approach to Specialty Crop Phytosanitary
Certification.--In conducting the program established under subsection
(a), the Secretary shall provide funds and technical assistance to
specialty crop growers, organizations representing such growers, and
State and local agencies working with such growers and organizations
for the development and implementation of certification systems based
on audit-based approaches, such as best management practices or nursery
pest risk management systems, to address plant pests and to mitigate
the risk of plant pests in the movement of plants and plant products.
(e) Cooperative Agreements.--The Secretary may enter into
cooperative agreements with other Federal departments or agencies,
States or political subdivisions of States, national governments, local
governments of other nations, domestic or international organizations,
domestic or international associations, and other persons to carry out
this section.
(f) Consultation.--The Secretary shall consult with the National
Plant Board, State departments of agriculture, and specialty crop
grower organizations to establish funding priorities under this section
for each fiscal year.
(g) Administrative Costs.--Not more than 5 percent of the funds
provided under this section may be used for administrative costs.
(h) Definitions.--In this section:
(1) Early pest detection and surveillance.--The term
``early pest detection and surveillance'' means the full range
of activities undertaken to find newly introduced pests,
whether new to the United States or new to certain areas of the
United States, before the pests become established, or before
pest infestations become too large and costly to eradicate or
control.
(2) Pest.--The term ``pest'' has the meaning given the term
``plant pest'' in section 403(14) of the Plant Protection Act
(7 U.S.C. 7702(14)).
(3) Specialty crop.--The term ``specialty crop'' has the
meaning given the term in section 3(1) of the Specialty Crop
Competitiveness Act of 2004 (Public Law 108-465; 118 Stat.
3883; 7 U.S.C. 1621 note).
(4) State department of agriculture.--The term ``State
department of agriculture'' means an agency of a State that has
a legal responsibility to perform early pest detection and
surveillance activities.
(i) 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''.
(j) Funding.--Of the funds of the Commodity Credit Corporation, the
Secretary shall make available to carry out this section--
(1) $10,000,000 for fiscal year 2008;
(2) $25,000,000 for fiscal year 2009;
(3) $40,000,000 for fiscal year 2010;
(4) $55,000,000 for fiscal year 2011; and
(5) $70,000,000 for fiscal year 2012.
SEC. 10202. MULTI-SPECIES FRUIT FLY RESEARCH AND STERILE FLY
PRODUCTION.
(a) Construction.--The Secretary of Agriculture shall construct a
warehouse and irradiation containment facility in Waimanalo, Hawaii, to
support fruit fly rearing and sterilization activities.
(b) Authorization of Appropriations.--There are authorized to be
appropriated--
(1) $15,000,000 for the construction of a warehouse and
irradiation containment facility pursuant to subsection (a);
and
(2) $1,000,000 for fiscal year 2008 and each subsequent
fiscal year for maintenance to the facilities constructed
pursuant to this section.
Subtitle D--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'';
and
(2) in subsection (b)(2), by striking ``$500'' and
inserting ``$750''.
SEC. 10302. ORGANIC PRODUCTION AND MARKET DATA.
(a) New Data Requirements.--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 DATA COLLECTION AND PUBLICATION.
``(a) Data Collection and Publication.--To assist organic farmers
in making informed production and marketing decisions, the Secretary of
Agriculture shall collect and publish segregated data and survey
information about the price, production, and marketing of major
organically produced commodities, as determined by the Secretary.
``(b) Funding.--The Secretary of Agriculture shall use $3,000,000
of the funds of the Commodity Credit Corporation to carry out this
section during fiscal year 2008, and such funds shall remain available
until expended.''.
(b) Implementation Report.--Not later than 180 days after the date
of the enactment of this Act, the Secretary of Agriculture shall submit
to Congress a report regarding the progress made in implementing the
amendment made by subsection (a).
SEC. 10303. ORGANIC CONVERSION, TECHNICAL, AND EDUCATIONAL ASSISTANCE.
(a) Establishment.--Not later than 180 days after the date of the
enactment of this section, the Secretary shall establish a program to
provide cost share and incentive payments and technical and educational
assistance to producers to promote conservation practices and
activities for production systems undergoing transition, in whole or in
part, to organic production in accordance with the Organic Foods
Production Act of 1990 (7 U.S.C. 6501 et seq.).
(b) Organic Transition Cost Share and Incentive Payments.--
(1) In general.--The Secretary shall enter into contracts
with eligible producers referred to in paragraph (2) to provide
cost-share and incentive payments to assist in the transition
to organic production systems.
(2) Eligible producers.--A producer is an eligible producer
under this paragraph if such producer agrees to--
(A) develop and carry out environmental and
conservation activities consistent with an organic plan
that protect soil, water, wildlife, air, and other
natural resources as defined by the Secretary;
(B) receive technical and education assistance from
the Secretary, or from organizations, institutions, and
consultants with cooperative agreements with the
Secretary, relating to--
(i) the development and implementation of
conservation practices and activities that are
part of an organic plan; or
(ii) other aspects of transition to organic
production, including marketing, credit,
business, and risk management plans;
(C) submit to annual verification by a certifying
agent accredited by the Department of Agriculture under
section 2115 of the Organic Foods Production Act of
1990 (7 U.S.C. 6514) to determine compliance of the
producer with organic certification requirements; and
(D) develop marketing, credit, business, and risk
management plans, as appropriate.
(3) Contract.--A contract entered into under paragraph (1)
shall provide that--
(A) payments provided to a producer under the
contract shall only be used for--
(i) conservation management and vegetative
and structural practices and activities during
transition to certified organic production
that--
(I) are consistent with an organic
plan; and
(II) protect soil, water, wildlife,
air, and other natural resources, as
required under the Organic Foods
Production Act of 1990 (7 U.S.C. 6501
et seq.);
(ii) animal production measures consistent
with an organic plan; and
(iii) such other measures as the Secretary
determines are appropriate and consistent with
an organic plan;
(B) subject to subparagraph (C), the contract shall
terminate after a period of not more than three years;
(C) the Secretary may terminate the contract if the
Secretary determines the eligible producer is not
pursuing organic certification under the Organic Foods
Production Act of 1990 (7 U.S.C. 6501 et seq.); and
(D) the Secretary may require repayment in whole of
payments already received if the Secretary determines
the eligible producer is not pursuing organic
certification under the Organic Foods Production Act of
1990 (7 U.S.C. 6501 et seq.).
(4) Limitations on payments.--An eligible producer may not
receive payments under paragraph (1)--
(A) for a total period of more than three years;
(B) an amount not to exceed $50 per acre for crop
land, or $25 per acre for grazing land; and
(C) in an amount more than $10,000 in a fiscal
year.
(c) Technical and Educational Assistance.--The Secretary shall
provide producers with technical and educational assistance, including
through the use of competitive cooperative agreements with non-profit
organizations, non-governmental organizations, institutes of higher
education, or consultants with expertise in advisory services for
organic producers on organic production systems, and the planning for
and marketing of organic products.
(d) Use of Funds.--The Secretary shall use 50 percent of the funds
made available pursuant to the authorization of appropriations under
subsection (f) to provide technical and educational assistance under
subsection (c).
(e) Definitions.--In this section:
(1) Organic plan.--The term ``organic plan'' means an
organic plan submitted under section 2114(a) of the Organic
Foods Production Act of 1990 (7 U.S.C. 6513(a)) and agreed to
by the producer and handler of a product and a certifying agent
under such section.
(2) Technical and educational assistance.--The term
``technical and educational assistance'' means the conveyance
of information and counsel regarding economic and business
planning, marketing, and organic practices, such as
entomological practices and pest and weed control and
prevention that satisfy organic practices.
(f) Funding.--There is authorized to be appropriated to carry out
this section $50,000,000, which shall remain available until expended.
Subtitle E--Miscellaneous Provisions
SEC. 10401. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY CROPS.
(a) Grants Authorized.--The Secretary of Agriculture may make
grants under this section to an eligible entity described in subsection
(b)--
(1) to improve the cost-effective movement of specialty
crops to local, regional, national, and international markets;
and
(2) to address regional intermodal transportation
deficiencies that adversely affect the movement of specialty
crops to markets inside or outside the United States.
(b) Eligible Grant Recipients.--Grants may be made under this
section to any of the following (or a combination thereof):
(1) State and local governments.
(2) Grower cooperatives.
(3) State or regional producer and shipper organizations.
(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 such sums as may be necessary for each of fiscal years
2008 through 2012 to carry out this section.
SEC. 10402. AUTHORIZATION OF APPROPRIATIONS FOR MARKET NEWS ACTIVITIES
REGARDING SPECIALTY CROPS.
There are authorized to be appropriated to the Secretary of
Agriculture such sums as may be necessary for each of the fiscal years
2008 through 2012 to support the market news activities regarding
specialty crops (as such term is defined in section 3(1) of the
Specialty Crops Competitiveness Act of 2004 (Public Law 108-465; 118
Stat. 3883)).
SEC. 10403. FARMER MARKETING ASSISTANCE PROGRAM.
(a) Findings.--Congress finds that--
(1) agricultural direct farmer-to-consumer marketing
activities, including farmers' markets, roadside stands,
community supported agriculture, internet, mail-order, and
other similar direct order marketing activities, significantly
enhance the ability of agricultural producers to retain a
greater share of their products' retail value;
(2) direct farmer-to-consumer marketing activities are a
crucial component of the current and future viability of small
and mid-sized farms and ranches and beginning and socially
disadvantaged farmers and ranchers; and
(3) agricultural direct marketing activities contribute to
the health and well-being of consumers in rural, urban, and
tribal communities by providing access to healthy, fresh, and
affordable food.
(b) Program.--Section 6 of the Farmer-to-Consumer Direct Marketing
Act of 1976 (7 U.S.C. 3005) is amended--
(1) in subsection (a)--
(A) by striking ``Farmers' Market Promotion
Program'' and inserting ``Farmer Marketing Assistance
Program''; and
(B) by striking ``promote farmers' markets'' and
inserting ``direct producer to consumer marketing'';
(2) in subsection (b)(1)--
(A) in subparagraph (A), by striking ``, domestic
farmers' markets, roadside stands, community-supported
agriculture programs, and other''; and
(B) in subparagraph (B), by striking ``farmers'
markets, roadside stands, community-supported
agriculture programs, and other direct producer-to-
consumer infrastructure'' and inserting ``direct
producer-to-consumer marketing and infrastructure
opportunities'';
(3) in subsection (c)--
(A) by redesignating paragraphs (1) through (7) as
paragraphs (2) through (8), respectively;
(B) by inserting before paragraph (2) the following
new paragraph:
``(1) two or more farmers or farm vendors who sell products
through a common channel of distribution;''; and
(C) in paragraph (2) (as so redesignated) by
striking ``an agricultural cooperative'' and inserting
``an agricultural cooperative or producer network or
association'';
(4) by striking subsection (e) and inserting the following
new subsections:
``(e) Eligible Activities.--A recipient of a grant under this
section may use the funds for the following activities:
``(1) Farmers markets.
``(2) Roadside stands.
``(3) Community supported agriculture operations, through
which a farmer agrees to deliver a certain quantity of
agricultural products to consumers at a set price.
``(4) The purchase of equipment or other activities
supporting the use of electronic benefit transfer systems at
farmers markets.
``(5) Agritourism activities facilitating the direct sale
of agricultural products, including operations where the
consumer picks their own agricultural products.
``(6) Other activities as determined appropriate by the
Secretary.
``(f) Funding.--
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary of Agriculture shall use to carry
out this section--
``(A) $5,000,000 in each of fiscal year 2008, 2009,
and 2010; and
``(B) $10,000,000 in 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 at farmers' markets.''.
SEC. 10404. NATIONAL CLEAN PLANT NETWORK.
(a) Establishment.--There is established in the Department of
Agriculture a program to be known as the ``National Clean Plant
Network''.
(b) Network.--The Secretary of Agriculture shall use the network--
(1) to develop a sustainable national funding source for
clean planting stock programs for horticultural crops
determined by the Secretary to be of priority for the United
States; and
(2) to enter into cooperative agreements to entities that
have the expertise, facilities, and climate necessary to
efficiently produce, maintain, and distribute healthy planting
stock for specialty crops.
(c) Funding.--
(1) Commodity credit corporation.--Of the funds of the
Commodity Credit Corporation, the Secretary shall make
available to carry out this section $20,000,000 for fiscal
years 2008 through 2012.
(2) Authorization of appropriations.--There are authorized
to be appropriated such sums as are necessary for each of
fiscal years 2008 through 2012 to carry out this section.
SEC. 10405. HEALTHY FOOD URBAN ENTERPRISE DEVELOPMENT PROGRAM.
(a) Purpose.--The purpose of this section is to support farm and
ranch income by significantly enhancing a producer's share of the final
retail product price through improved access to competitive processing
and distribution systems which deliver affordable, locally and
regionally produced foods to consumers, and improve food access in
underserved communities.
(b) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity''
includes--
(A) a small or midsized processor, distributor,
wholesaler, or retail food outlet;
(B) a group of producers operating as a legally
recognized marketing alliance;
(C) a producer-owned cooperative;
(D) a nonprofit organization;
(E) an economic development or community
development corporation;
(F) a unit of State or local government; and
(G) an academic institution.
(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) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(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) Underserved community.--The term ``underserved
community'' includes any community that may have, as determined
by the Secretary--
(A) limited access to affordable, healthy foods,
including fresh fruits and vegetables, in grocery
retail stores or farmer-to-consumer direct markets;
(B) high incidences of diet-related diseases,
including obesity;
(C) high rates of hunger or food insecurity; or
(D) severe or persistent poverty in urban or rural
communities, including Indian tribal communities.
(c) Grant Program.--
(1) Establishment.--The Secretary, acting through the head
of the market services branch of the Agricultural Marketing
Service, shall establish a program under which the Secretary
shall provide grants, on a competitive basis, to eligible
entities to conduct enterprise feasibility studies (including
studies of consumer preference), in accordance with the purpose
of this section.
(2) Application.--To be eligible to receive a grant under
this subsection, an eligible entity shall submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require.
(3) Coordination with other agencies.--In carrying out the
program under this subsection, the Secretary shall coordinate,
with respect to the development of the program and reviews of
grant applications, with--
(A) the Cooperative State Research, Education, and
Extension Service; and
(B) the Rural Business Cooperative Service.
(4) Priority.--In providing grants under this subsection,
the Secretary shall give priority to applications with proposed
projects that--
(A) include features effectively targeting
participation by socially disadvantaged farmers or
ranchers or beginning farmers or ranchers;
(B) increase employment opportunities in
underserved communities;
(C) support small and mid-sized farm viability and
increase farming opportunities; or
(D) establish and maintain satisfactory
environmental and labor standards, including worker
protection.
(5) Maximum amount.--The amount of a grant provided under
this subsection shall not exceed $250,000.
(6) Term.--A grant provided under this subsection shall
have a term of not more than 3 years.
(7) Reports.--
(A) In general.--Each eligible entity that receives
a grant under this subsection shall submit to the
Secretary an annual report describing the results and
progress of each feasibility study to ensure sufficient
progress is achieved with respect to the goals of the
projects carried out by the eligible entity.
(B) Public availability.--The Secretary shall
ensure that any information contained in a report under
subparagraph (A) relating to consumer preference or
producer availability is made available to the public.
(8) Funding.--There are authorized to be appropriated such
sums as are necessary for each of fiscal years 2008 through
2012 to carry out this section.
(d) Grant Program Requirements.--
(1) Technical assistance and outreach.--
(A) In general.--The Secretary shall--
(i) provide to the public information
relating to the grant programs under this
section; and
(ii) provide technical assistance to--
(I) socially disadvantaged farmers
or ranchers;
(II) Indian tribal organizations;
(III) low-income populations; and
(IV) other underserved communities
and producers.
(B) Service providers.--In carrying out
subparagraph (A), the Secretary may enter into
contracts, on a competitive basis, with entities that,
as determined by the Secretary--
(i) demonstrate experience in serving
socially disadvantaged farmers or ranchers and
other underserved communities and producers;
(ii) include, in the governance structure
of the entity, 2 or more members representing
the targeted communities served by the entity;
and
(iii) will share information developed or
used by the entity with--
(I) researchers;
(II) practitioners; and
(III) other interested parties.
(2) Limitations.--For purposes of the programs under this
section, the Secretary--
(A) shall not give preference to any entity based
on an agricultural commodity produced or supported by
the entity; and
(B) shall encourage, to the maximum extent
practicable, projects that use infrastructure
efficiently for more than 1 agricultural product.
(3) Report.--Not less frequently than once each year, the
Secretary shall submit to Congress a report that describes the
programs (including the level of participation in each program)
under this section, including information relating to--
(A) projects carried out under this section;
(B) characteristics of the agricultural producers
and communities served by the projects;
(C) the benefits of the projects;
(D) data necessary to comply with--
(i) section 2501A of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C.
2279-1); or
(ii) section 8(b)(5)(B) of the Soil
Conservation and Domestic Allotment Act (16
U.S.C. 590h(b)(5)); and
(E) outreach and technical assistance activities
carried out by the Secretary under paragraph (1).
TITLE XI--MISCELLANEOUS PROVISIONS
Subtitle A--Federal Crop Insurance
Sec. 11001. Premiums and reinsurance requirements.
Sec. 11002. Catastrophic risk protection administrative fee.
Sec. 11003. Funding for reimbursements, contracting, risk management
education, and information technology.
Sec. 11004. Reimbursement of research and development costs related to
new crop insurance products.
Sec. 11005. Research and development contracts for organic production
coverage improvements.
Sec. 11006. Targeting risk management education for beginning farmers
and ranchers and certain other farmers and
ranchers.
Sec. 11007. Crop insurance ineligibility related to crop production on
noncropland.
Sec. 11008. Funds for data mining.
Sec. 11009. Noninsured crop assistance program.
Sec. 11010. Change in due date for Corporation payments for
underwriting gains.
Sec. 11011. Sesame insurance pilot program.
Sec. 11012. National Drought Council and drought preparedness plans.
Sec. 11013. Payment of portion of premium for area revenue plans.
Sec. 11014. Share of risk.
Sec. 11015. Livestock Assistance.
Sec. 11016. Determination of certain sweet potato production.
Subtitle B--Livestock and Poultry
Sec. 11101. Sense of Congress regarding pseudorabies eradication
program.
Sec. 11102. Arbitration of livestock and poultry contracts.
Sec. 11103. State-inspected meat and poultry.
Sec. 11104. Country of origin labeling.
Sec. 11105. Sense of Congress regarding the voluntary control program
for low pathogenic avian influenza.
Sec. 11106. Sense of Congress regarding the cattle fever tick
eradication program.
Subtitle C--Socially Disadvantaged Producers and Limited Resource
Producers
Sec. 11201. Outreach and technical assistance for socially
disadvantaged farmers and ranchers and
limited resource farmers and ranchers.
Sec. 11202. Improved program delivery by Department of Agriculture on
Indian reservations.
Sec. 11203. Transparency and accountability for socially disadvantaged
farmers and ranchers.
Sec. 11204. Beginning farmer and rancher development program.
Sec. 11205. Provision of receipt for service or denial of service.
Sec. 11206. Tracking of socially disadvantaged farmers and ranchers and
limited resource farmers and ranchers in
Census of Agriculture and certain studies.
Sec. 11207. Farmworker coordinator.
Sec. 11208. Office of Outreach relocation.
Sec. 11209. Minority farmer advisory committee.
Sec. 11210. Coordinator for chronically underserved rural areas.
Subtitle D--Other Miscellaneous Provisions
Sec. 11301. Designation of separate cotton-producing States under
Cotton Research and Promotion Act.
Sec. 11302. Cotton classification services.
Sec. 11303. Availability of excess and surplus computers in rural
areas.
Sec. 11304. Permanent debarment from participation in Department of
Agriculture programs for fraud.
Sec. 11305. No discrimination against use of registered pesticide
products or classes of pesticide products.
Sec. 11306. Prohibition on closure or relocation of county offices for
the Farm Service Agency, Rural Development
Agency, and Natural Resources Conservation
Service.
Sec. 11307. Regulation of exports of plants, plant products, biological
control organisms, and noxious weeds.
Sec. 11308. Grants to reduce production of methamphetamines from
anhydrous ammonia.
Sec. 11309. USDA Graduate School.
Sec. 11310. Prevention and investigation of payment and fraud and
error.
Sec. 11311. Sense of Congress regarding food deserts, geographically
isolated neighborhoods and communities with
limited or no access to major chain grocery
stores.
Sec. 11312. Pigford claims.
Sec. 11313. Comptroller general study of wastewater infrastructure near
United States-Mexico border.
Sec. 11314. Elimination of statute of limitations applicable to
collection of debt by administrative
offset.
Sec. 11315. Pollinator protection.
Sec. 11316. Prohibition on use of live animals for marketing medical
devices; fines under the Animal Welfare
Act.
Sec. 11317. Protection of pets.
Subtitle A--Federal Crop Insurance
SEC. 11001. PREMIUMS AND REINSURANCE REQUIREMENTS.
(a) Premium 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 new paragraph:
``(9) Premium adjustments.--
``(A) Prohibition.--Except as provided in
subparagraph (B), the paying, allowing, or giving, or
offering 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 whatsoever not
specified in the policy, is strictly prohibited under
this title.
``(B) Exceptions.--Subparagraph (A) does not apply
with respect to the following:
``(i) A rebate authorized under subsection
(b)(5)(B).
``(ii) A performance-based discount
authorized under subsection (d)(3).''.
(b) Payment of Catastrophic Risk Protection Fee on Behalf of
Producers.--Section 508(b)(5)(B) of the Federal Crop Insurance Act (7
U.S.C. 1508(b)(5)(B)) is amended--
(1) in the subparagraph heading, by inserting ``of
catastrophic risk protection fee'' after ``Payment'';
(2) in clause (i)--
(A) by striking ``or other payment''; and
(B) by striking ``with catastrophic risk protection
or additional coverage''; and inserting ``through the
payment of all or a portion of catastrophic risk
protection administrative fees'';
(3) in clause (ii)--
(A) by striking ``or other payment made by an
insurance provider'' and inserting ``payment made
pursuant to clause (i) by an insurance provider'';
(B) by striking ``issuance of catastrophic risk
protection or additional coverage to'' and inserting
``payment of catastrophic risk protection
administrative fees on behalf of''; and
(C) by striking ``or other payment'' the second
place it appears;
(4) in clause (iv), by striking ``A policy or plan of
insurance'' and inserting ``Catastrophic risk protection
coverage'';
(5) in clause (v)--
(A) by striking ``licensing fee or other
arrangement under this subparagraph'' and inserting
``licensing fee arrangement''; and
(B) by striking ``levels of additional coverage''
and inserting ``levels of coverage''; and
(6) by striking clause (vi).
(c) Change in Due Date for Policyholder Premiums.--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)(B)--
(A) by inserting ``; time for payment'' after
``waiver''; and
(B) by adding at the end the following new
sentence: ``Subparagraph (C) of such subsection shall
apply with respect to the collection date for policy
premiums.''; and
(3) in subsection (d), by adding at the end the following
new paragraph:
``(4) Billing date for premiums.--Beginning with the 2012
reinsurance year, the Corporation shall establish August 1 as
the billing date for premiums.''.
(d) Reinsurance.--
(1) Reimbursement rate.--Section 508(k)(4)(A) of the
Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(A)) is amended
by striking clause (ii) and inserting the following new clause:
``(ii) for the 2009 and subsequent
reinsurance years, 2.9 percentage points below
the rates, in effect as of the date of the
enactment of this Act of the Farm, Nutrition,
and Bioenergy Act of 2007, for all crop
insurance policies used to define loss
ratio.''.
(2) 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 new
paragraph:
``(8) Renegotiation of standard reinsurance agreement.--
``(A) Periodic renegotiation.--Following the
reinsurance year ending June 30, 2012, the Corporation
may renegotiate the financial terms of the standard
reinsurance agreement during the next reinsurance year
and once during each period of five reinsurance years
thereafter.
``(B) Effect of federal law changes.--If changes in
Federal law are enacted that require revisions in the
financial terms of the standard reinsurance agreement,
and such changes in the agreement are made on a
mandatory basis by the Corporation, such changes will
not be deemed to be a renegotiation of the agreement
for purposes of subparagraph (A).
``(C) Consultation.--Approved insurance providers
and their representatives may confer with each other,
and collectively with the Corporation, during the
renegotiation process under subparagraph (A).''.
(3) Treatment of 2008 reinsurance year.--Clause (ii) of
section 508(k)(4)(A) of the Federal Crop Insurance Act (7
U.S.C. 1508(k)(4)(A)), as in effect on the day before the date
of the enactment of this Act, shall continue to apply with
respect to the 2008 reinsurance year.
(e) Change in Due Date for Administrative and Operating Expense
Payment.--Section 516(b) of the Federal Crop Insurance Act (7 U.S.C.
1516(b)) is amended by adding at the end the following new paragraph:
``(3) Due date for administrative and operating expense
payment.--Beginning with the 2012 reinsurance year, the
Corporation shall make payments pursuant to paragraph (1)(B)
during October 2012, and for subsequent reinsurance years,
every October thereafter.''.
(f) Conforming Amendments.--
(1) Premium reduction authority.--Subsection 508(e) of the
Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended--
(A) in paragraph (2) by striking ``paragraph (4)''
and inserting ``paragraph (3)'';
(B) by striking paragraph (3); and
(C) by redesignating paragraphs (4) and (5) as
paragraphs (3) and (4), respectively.
(2) Premium rate reduction pilot program.--Section 523 of
the Federal Crop Insurance Act (7 U.S.C. 1523) is amended--
(A) by striking subsection (d); and
(B) by redesignating subsection (e) as subsection
(d).
(3) Submission of policies and materials.--Section
508(h)(1)(A) of the Federal Crop Insurance Act (7 U.S.C.
1508(h)(1)(A)) is amended by striking ``; and'' and inserting
``; or''.
SEC. 11002. CATASTROPHIC RISK PROTECTION ADMINISTRATIVE FEE.
Section 508(b)(5)(A) of the Federal Crop Insurance Act (7 U.S.C.
1508(b)(5)(A)) is amended by striking ``$100 per crop per county'' and
inserting in its place ``$200 per crop per county''.
SEC. 11003. FUNDING FOR REIMBURSEMENTS, CONTRACTING, RISK MANAGEMENT
EDUCATION, AND INFORMATION TECHNOLOGY.
(a) Funding.--Section 516 of the Federal Crop Insurance Act (7
U.S.C. 1516) is amended by adding at the end the following new
subsections:
``(d) Funding for Reimbursements, Contracting, Risk Management
Education, and Information Technology.--Of the amounts made available
from the insurance fund established under subsection (c), the
Corporation shall use not more than $30,000,000 in each fiscal year to
carry out the following:
``(1) Reimbursement of research and development and
maintenance costs described under section 522(b).
``(2) Research and development contracting described under
section 522(c).
``(3) Partnerships for risk management and implementation
described under section 522(d).
``(4) Education and information programs described in
section 524(a)(2).
``(5) Partnerships for risk management education program
described in section 524(a)(3).
``(6) Information technology, as determined by the
Corporation.
``(e) Underserved States.--Of the amount made available under
subsection (d), the Corporation shall use not more than $5,000,000 in
each fiscal year to carry out contracting for research and development
described in section 522(c)(1)(A).''.
(b) Conforming Amendments.--
(1) Former funding provision.--Section 522 of the Federal
Crop Insurance Act (7 U.S.C. 1522) is amended by striking
subsection (e) and inserting the following new subsection:
``(e) Prohibited Research and Development by Corporation.--
``(1) New policies.--Notwithstanding subsection (d), the
Corporation shall not conduct research and development for any
new policy for an agricultural commodity offered under this
title.
``(2) Existing policies.--Any policy developed by the
Corporation under this title before October 1, 2000, may
continue to be offered for sale to producers.''.
(2) Cross reference.--Section 523(c)(1) of the Federal Crop
Insurance Act (7 U.S.C. 1523(c)(1)) is amended by striking
``section 522(e)(4)'' and inserting ``section 522(e)''.
(3) Education assistance funding.--Section 524(a) of the
Federal Crop Insurance Act (7 U.S.C. 1524(a)) is amended as
follows:
(A) in paragraph (1), by striking ``paragraph (4)''
and inserting ``section 516(d)''; and
(B) by striking paragraph (4).
SEC. 11004. REIMBURSEMENT OF RESEARCH AND DEVELOPMENT COSTS RELATED TO
NEW CROP INSURANCE PRODUCTS.
(a) Reimbursement Authorized.--Paragraph (1) of section 522(b) of
the Federal Crop Insurance Act (7 U.S.C. 1522(b)) is amended to read as
follows:
``(1) Research and development reimbursement.--The
Corporation shall provide a payment to reimburse an applicant
for research and development costs directly related to a policy
that--
``(A) is submitted to the Board pursuant to an FCIC
Reimbursement Grant under paragraph (7); or
``(B) is submitted to the Board and approved by the
Board under section 508(h) for reinsurance and, if
applicable, offered for sale to producers.''.
(b) FCIC Reimbursement Grants.--Section 522(b) of the Federal Crop
Insurance Act (7 U.S.C. 1522(b)) is amended by adding at the end the
following new paragraph:
``(7) FCIC reimbursement grants.--
``(A) Grants authorized.--The Corporation shall
provide FCIC Reimbursement Grants to persons proposing
to prepare for submission to the Board crop insurance
policies and provisions under subparagraphs (A) and (B)
of section 508(h)(1), who apply and are approved for
such FCIC Reimbursement Grants under the terms and
conditions of this paragraph.
``(B) Submission of application.--The Board shall
receive and consider applications for FCIC
Reimbursement Grants at least once annually. An
application to receive an FCIC Reimbursement Grant from
the Corporation shall consist of such materials as the
Board may require, including--
``(i) a concept paper that describes the
proposal in sufficient detail for the Board to
determine whether it satisfies the requirements
of subparagraph (C);
``(ii) a summary of --
``(I) the need for the product,
including an assessment of
marketability and expected demand among
affected producers;
``(II) support from producers,
producer organizations, lenders, or
other interested parties;
``(III) the impact the product
would have on producers and on the crop
insurance delivery system; and
``(IV) that no products are offered
by the private sector providing the
same benefits and risk management
services as the proposal.
``(iii) a summary of data sources available
demonstrating that the product can reasonably
be developed and properly rated; and
``(iv) identification of the risks the
proposed product will cover and that the risks
are insurable under the Act.
``(C) Approval conditions.--Approval of an
application for a FCIC Reimbursement Grant shall be by
majority vote of the Board. The Board shall approve the
application only if the Board finds that--
``(i) the proposal contained in the
application--
``(I) provides coverage to a crop
or region not traditionally served by
the Federal crop insurance program;
``(II) provides crop insurance
coverage in a significantly improved
form;
``(III) addresses a recognized flaw
or problem in the program;
``(IV) introduces a significant new
concept or innovation to the program;
or
``(V) provides coverage, benefits,
or risk management services not
available from the private sector;
``(ii) the applicant demonstrates the
necessary qualifications to complete the
project successfully in a timely manner with
high quality;
``(iii) the proposal is in the interests of
producers and can reasonably be expected to be
actuarially appropriate;
``(iv) the Board determines that the
Corporation has sufficient available funding to
award the FCIC Reimbursement Grant; and
``(v) the proposed budget and timetable are
reasonable.
``(D) Participation.--In reviewing proposals under
this paragraph, the Board may use the services of
persons it deems appropriate for expert review. All
proposals submitted under this paragraph will be
treated as confidential in accordance with section
508(h)(4).
``(E) Entering into agreement.--Upon approval of
the application, the Board shall enter into an
agreement with the person for the development of a
formal submission meeting the requirements for a
complete submission established by the Board under
section 508(h).
``(F) Feasibility studies.--In appropriate cases,
the Corporation may structure the FCIC Reimbursement
Grant to require, as an initial step within the overall
process, the submitter to complete a feasibility study
and report the results of such study to the Corporation
prior to proceeding with further development. The
Corporation may require such other reports as necessary
to monitor the development efforts.
``(G) Rates.--Payment for work performed under this
paragraph shall be based on rates determined by the
Corporation for products submitted under section 508(h)
of the Act or for those contracted by the Corporation
under section 522(c) of the Act.
``(H) Termination.--The Corporation or the
submitter may terminate any FCIC Reimbursement Grant to
reimburse expenses at any time for just cause. If the
Corporation or the submitter terminates the FCIC
Reimbursement Grant before final approval of the
product covered thereby, the submitter shall be
entitled to reimbursement of all costs incurred to that
point, or, in the case of a fixed rate agreement, to
payment of an appropriate percentage. If the submitter
terminates development without just cause, the
Corporation may deny reimbursement.
``(I) Consideration of products.--The Board shall
consider any product submitted to it developed under
this paragraph under the rules it has established for
products submitted under section 508(h) of this Act.''.
SEC. 11005. RESEARCH AND DEVELOPMENT CONTRACTS FOR ORGANIC PRODUCTION
COVERAGE IMPROVEMENTS.
Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c))
is amended--
(1) by redesignating paragraph (10) as paragraph (11); and
(2) by inserting after paragraph (9) the following new
paragraph:
``(10) Contracts for organic production coverage
improvements.--
``(A) Contract required.--Not later than 180 days
after the date of the enactment of the Farm, Nutrition,
and Bioenergy Act of 2007, the Corporation shall enter
into one 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.
``(B) Review of underwriting, risk, and loss
experience.--
``(i) Review required.--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 time periods
using non-organic methods. The review should be
designed to allow the Corporation to determine
whether significant, consistent, or systemic
variations in loss history exist between
organic and non-organic production, and shall
include the widest available range of data,
including loss history under existing crop
insurance policies, collected by the National
Agricultural Statistics Service, and other
sources of information.
``(ii) Effect on premium surcharge.--Unless
the review under this subparagraph documents
the existence of such significant, consistent,
and systemic variations in loss history between
organic and non-organic crops, either
collectively or on an individual basis, the
Corporation shall eliminate or reduce the
premium surcharge that the Corporation charges
for coverage for organic crops.
``(C) Additional price election.--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 would reflect the actual
retail or wholesale prices, as appropriate, received by
organic producers for their crops, as established using
data collected and maintained by the Agricultural
Marketing Service or other sources. 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 2009 crop year, and expand it thereafter as the
Agricultural Marketing Service expands its data
collection and availability for prices of organic
crops.
``(D) Reporting requirements.--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 the progress made in developing and
improving Federal crop insurance for organic crops,
including the numbers and varieties of organic crops
insured, the development of new insurance approaches,
and the progress of the initiatives mandated under this
paragraph. The report shall also include such
recommendations as the Corporation considers
appropriate regarding additional opportunities to
improve Federal crop insurance coverage for such
crops.''.
SEC. 11006. TARGETING RISK MANAGEMENT EDUCATION FOR BEGINNING FARMERS
AND RANCHERS AND CERTAIN OTHER FARMERS AND RANCHERS.
Section 524(a) of the Federal Crop Insurance Act (7 U.S.C. 1524(a))
is amended--
(1) by redesignating paragraph (4) as paragraph (5); and
(2) by inserting after paragraph (3) the following new
paragraph:
``(4) Targeting risk management education for certain
farmers and ranchers.--
``(A) In general.--In carrying out the education
and information program established under paragraph (2)
and the partnerships for risk management education
program under paragraph (3), the Secretary shall
include a special emphasis on risk management
strategies and education and outreach specifically
targeted at farmers and ranchers described in
subparagraph (B).
``(B) Covered farmers and ranchers.--Subparagraph
(A) applies with respect to the following:
``(i) Beginning farmers and ranchers.
``(ii) Immigrant farmers and ranchers who
are attempting to become established producers
in the United States.
``(iii) Socially disadvantaged farmers and
ranchers.
``(iv) Farmers and ranchers who are
preparing to retire and are using transition
strategies to help new farmers and ranchers get
started.
``(v) Farmers and ranchers who are
converting their current production and
marketing systems to pursue new markets.''.
SEC. 11007. CROP INSURANCE INELIGIBILITY RELATED TO CROP PRODUCTION ON
NONCROPLAND.
Section 502 of the Federal Crop Insurance Act (7 U.S.C. 1502) is
amended by adding at the end the following new subsection:
``(e) Crop Insurance Ineligibility Related to Crop Production on
Noncropland.--
``(1) Noncropland defined.--In this subsection, the term
`noncropland' means native grassland and pasture the Secretary
determines has never been used for crop production.
``(2) Ineligibility.--Noncropland acreage on which an
agricultural commodity for which a policy or plan of insurance
is available under this title is planted shall be ineligible
for crop insurance under this title for the first 4 years of
planting, as determined by the Secretary.
``(3) Yield determination based on county actual production
history.--If an agricultural commodity ineligible for insurance
as described in paragraph (2) is planted for 4 years, beginning
with the fifth year in which the commodity is planted, the
producer of the commodity may procure crop insurance for the
commodity under this title. The yield for such crop insurance
shall be determined only--
``(A) by using the actual production history for
the farm; and
``(B) for each year in which the farm does not have
an actual production history, by using the average
actual production history for the commodity in the
county in which the farm is located.
``(4) Effective date.--This subsection shall apply to crop
years following the 2007 crop year.''.
SEC. 11008. FUNDS FOR DATA MINING.
Section 515(k) of the Federal Crop Insurance Act (7 U.S.C. 1515(k))
is amended by striking paragraph (1) and inserting the following new
paragraph:
``(1) Available funds.--To carry out this section, the
Corporation may use, from amounts made available from the
insurance fund established under section 516(c)--
``(A) not more than $11,000,000 during fiscal year
2008; and
``(B) not more than $7,000,000 during fiscal year
2009 and each subsequent year thereafter.''.
SEC. 11009. NONINSURED CROP ASSISTANCE PROGRAM.
Section 196(k)(1) of the Agricultural Market Transition Act (7
U.S.C. 7333(k)(1)) is amended by striking subparagraphs (A) and (B) and
inserting the following new subparagraphs:
``(A) $200 per crop per county; or
``(B) $600 per producer per county, but not to
exceed a total of $1,800 per producer.''.
SEC. 11010. CHANGE IN DUE DATE FOR CORPORATION PAYMENTS FOR
UNDERWRITING GAINS.
Effective beginning with the 2011 reinsurance year, the Federal
Crop Insurance Corporation shall make payments for underwriting gains
under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.)--
(1) for the 2011 reinsurance year on October 1, 2012; and
(2) for each reinsurance year thereafter on the October 1
of the next calendar year.
SEC. 11011. SESAME INSURANCE PILOT PROGRAM.
(a) Pilot Program Required.--The Secretary of Agriculture shall
establish and carry out a pilot program under which a producer of non-
dehiscent sesame under contract may elect to obtain multi-peril crop
insurance, as determined by the Secretary.
(b) Terms and Conditions.--The multi-peril crop insurance offered
under the sesame insurance pilot program shall--
(1) be offered through reinsurance arrangements with
private insurance companies;
(2) be actuarially sound; and
(3) require the payment of premiums and administrative fees
by a producer obtaining the insurance.
(c) Location.--The sesame insurance pilot program shall be carried
out only in the State of Texas.
(d) Relation to Prohibition on Research and Development by
Corporation.--Section 522(e)(4) of the Federal Crop Insurance Act (7
U.S.C. 1522(e)(4)) shall apply with respect to the sesame insurance
pilot program.
(e) Duration.--The Secretary shall commence the sesame insurance
pilot program as soon as practicable after the date of the enactment of
this Act and continue the program through the 2012 crop year.
SEC. 11012. NATIONAL DROUGHT COUNCIL AND DROUGHT PREPAREDNESS PLANS.
(a) Definitions.--In this section:
(1) Council.--The term ``Council'' means the National
Drought Council established by this section.
(2) Critical service provider.--The term ``critical service
provider'' means an entity that provides power, water
(including water provided by an irrigation organization or
facility), sewer services, or wastewater treatment.
(3) Drought.--The term ``drought'' means a natural disaster
that is caused by a deficiency in precipitation--
(A) that may lead to a deficiency in surface and
subsurface water supplies (including rivers, streams,
wetlands, ground water, soil moisture, reservoir
supplies, lake levels, and snow pack); and
(B) that causes or may cause--
(i) substantial economic or social impacts;
or
(ii) physical damage or injury to
individuals, property, or the environment.
(4) Fund.--The term ``Fund'' means the Drought Assistance
Fund established by this section.
(5) 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).
(6) Interstate watershed.--The term ``interstate
watershed'' means a watershed that transcends State or Tribal
boundaries, or both.
(7) Member.--The term ``member'', with respect to the
National Drought Council, means a member of the Council
specified or appointed under this section or, in the absence of
the member, the member's designee.
(8) Mitigation.--The term ``mitigation'' means a short- or
long-term action, program, or policy that is implemented in
advance of or during a drought to minimize any risks and
impacts of drought.
(9) Neighboring country.--The term ``neighboring country''
means Canada and Mexico.
(10) Office.--The term ``Office'' means the National Office
of Drought Preparedness established under this section.
(11) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(12) State.--The term ``State'' means the several States,
the District of Columbia, American Samoa, Guam, the
Commonwealth of the Northern Mariana Islands, the Commonwealth
of Puerto Rico, and the United States Virgin Islands.
(13) Trigger.--The term ``trigger'' means the thresholds or
criteria that must be satisfied before mitigation or emergency
assistance may be provided to an area--
(A) in which drought is emerging; or
(B) that is experiencing a drought.
(14) Under secretary.--The term ``Under Secretary'' means
the Under Secretary of Agriculture for Natural Resources and
Environment.
(15) Watershed.--The term ``watershed'' means a region or
area with common hydrology, an area drained by a waterway that
drains into a lake or reservoir, the total area above a given
point on a stream that contributes water to the flow at that
point, or the topographic dividing line from which surface
streams flow in two different directions. In no case shall a
watershed be larger than a river basin.
(16) Watershed group.--The term ``watershed group'' means a
group of individuals, formally recognized by the appropriate
State or States, who represent the broad scope of relevant
interests within a watershed and who work together in a
collaborative manner to jointly plan the management of the
natural resources contained within the watershed.
(b) Effect of Section.--This section does not affect--
(1) the authority of a State to allocate quantities of
water under the jurisdiction of the State; or
(2) any State water rights established as of the date of
enactment of this Act.
(c) National Drought Council.--
(1) Establishment.--There is established in the Office of
the Secretary of Agriculture a council to be known as the
``National Drought Council''.
(2) Membership.--
(A) Composition.--The Council shall be composed
of--
(i) the Secretary (or the designee of the
Secretary);
(ii) the Secretary of Commerce (or the
designee of the Secretary of Commerce);
(iii) the Secretary of the Army (or the
designee of the Secretary of the Army);
(iv) the Secretary of the Interior (or the
designee of the Secretary of the Interior);
(v) the Director of the Federal Emergency
Management Agency (or the designee of the
Director);
(vi) the Administrator of the Environmental
Protection Agency (or the designee of the
Administrator);
(vii) 4 members appointed by the Secretary,
in coordination with the National Governors
Association, each of whom shall be the Governor
of a State (or the designee of the Governor)
and who collectively shall represent the
geographic diversity of the Nation;
(viii) 1 member appointed by the Secretary,
in coordination with the National Association
of Counties;
(ix) 1 member appointed by the Secretary,
in coordination with the United States
Conference of Mayors;
(x) 1 member appointed by the Secretary of
the Interior, in coordination with Indian
tribes, to represent the interests of tribal
governments; and
(xi) 1 member appointed by the Secretary,
in coordination with the National Association
of Conservation Districts, to represent local
soil and water conservation districts.
(B) Date of appointment.--The appointment of each
member of the Council shall be made not later than 120
days after the date of enactment of this Act.
(3) Term; vacancies.--
(A) Term.--A non-Federal member of the Council
appointed under paragraph (2) shall be appointed for a
term of two years.
(B) Vacancies.--A vacancy on the Council--
(i) shall not affect the powers of the
Council; and
(ii) shall be filled in the same manner as
the original appointment was made.
(C) Terms of members filling vacancies.--Any member
appointed to fill a vacancy occurring before the
expiration of the term for which the member's
predecessor was appointed shall be appointed only for
the remainder of that term.
(4) Meetings.--
(A) In general.--The Council shall meet at the call
of the co-chairs.
(B) Frequency.--The Council shall meet at least
semiannually.
(5) Quorum.--A majority of the members of the Council shall
constitute a quorum, but a lesser number may hold hearings or
conduct other business.
(6) Council leadership.--
(A) In general.--There shall be a Federal co-chair
and non-Federal co-chair of the Council.
(B) Appointment.--
(i) Federal co-chair.--The Secretary shall
be Federal co-chair.
(ii) Non-federal co-chair.--The non-Federal
members of the Council shall select, on a
biannual basis, a non-Federal co-chair of the
Council from among the members appointed under
paragraph (2).
(7) Director of the office.--
(A) In general.--The Director of the Office shall
serve as Secretary of the Council.
(B) Duties.--The Director of the Office shall serve
the interests of all members of the Council.
(d) Duties of the Council.--
(1) In general.--The Council shall--
(A) not later than one year after the date of the
first meeting of the Council, develop a comprehensive
National Drought Policy Action Plan that--
(i)(I) delineates and integrates
responsibilities for activities relating to
drought (including drought preparedness,
mitigation, research, risk management,
training, and emergency relief) among Federal
agencies; and
(II) ensures that those activities are
coordinated with the activities of the States,
local governments, Indian tribes, and
neighboring countries;
(ii) is consistent with--
(I) this Act and other applicable
Federal laws; and
(II) the laws and policies of the
States for water management;
(iii) is integrated with drought management
programs of the States, Indian tribes, local
governments, watershed groups, and private
entities; and
(iv) avoids duplicating Federal, State,
tribal, local, watershed, and private drought
preparedness and monitoring programs in
existence on the date of enactment of this Act;
(B) evaluate Federal drought-related programs in
existence on the date of enactment of this Act and make
recommendations to Congress and the President on means
of eliminating--
(i) discrepancies between the goals of the
programs and actual service delivery;
(ii) duplication among programs; and
(iii) any other circumstances that
interfere with the effective operation of the
programs;
(C) make recommendations to the President,
Congress, and appropriate Federal Agencies on--
(i) the establishment of common interagency
triggers for authorizing Federal drought
mitigation programs; and
(ii) improving the consistency and fairness
of assistance among Federal drought relief
programs;
(D) encourage and facilitate the development of
drought preparedness plans under subtitle C, including
establishing the guidelines under this section;
(E) based on a review of drought preparedness
plans, develop and make available to the public drought
planning models to reduce water resource conflicts
relating to water conservation and droughts;
(F) develop and coordinate public awareness
activities to provide the public with access to
understandable, and informative materials on drought,
including--
(i) explanations of the causes of drought,
the impacts of drought, and the damages from
drought;
(ii) descriptions of the value and benefits
of land stewardship to reduce the impacts of
drought and to protect the environment;
(iii) clear instructions for appropriate
responses to drought, including water
conservation, water reuse, and detection and
elimination of water leaks;
(iv) information on State and local laws
applicable to drought; and
(v) opportunities for assistance to
resource-dependent businesses and industries in
times of drought; and
(G) establish operating procedures for the Council.
(2) Consultation.--In carrying out this subsection, the
Council shall consult with groups affected by drought
emergencies.
(3) Reports to congress.--
(A) Annual report.--
(i) In general.--Not later than one year
after the date of the first meeting of the
Council, and annually thereafter, the Council
shall submit to Congress a report on the
activities carried out under this section.
(ii) Inclusions.--
(I) In general.--The annual report
shall include a summary of drought
preparedness plans.
(II) Initial report.--The initial
report submitted under subparagraph (A)
shall include any recommendations of
the Council.
(B) Final report.--Not later than seven years after
the date of enactment of this Act, the Council shall
submit to Congress a report that recommends--
(i) amendments to this section; and
(ii) whether the Council should continue.
(e) Powers of the Council.--
(1) Hearings.--The Council may hold hearings, meet and act
at any time and place, take any testimony and receive any
evidence that the Council considers advisable to carry out this
section.
(2) Information from federal agencies.--
(A) In general.--The Council may obtain directly
from any Federal agency any information that the
Council considers necessary to carry out this section.
(B) Provision of information.--
(i) In general.--Except as provided in
clause (ii), on request of the Secretary or the
non-Federal co-chair of the Council, the head
of a Federal agency may provide information to
the Council.
(ii) Limitation.--The head of a Federal
agency shall not provide any information to the
Council that the Federal agency head determines
the disclosure of which may cause harm to
national security interests.
(3) Postal services.--The Council may use the United States
mail in the same manner and under the same conditions as other
agencies of the Federal Government.
(4) Gifts.--The Council may accept, use, and dispose of
gifts or donations of services or property.
(f) Council Personnel Matters.--
(1) Compensation of members.--
(A) Non-federal employees.--A member of the Council
who is not an officer or employee of the Federal
Government shall serve without compensation.
(B) Federal employees.--A member of the Council who
is an officer or employee of the United States shall
serve without compensation in addition to the
compensation received for services of the member as an
officer or employee of the Federal Government.
(2) Travel expenses.--A member of the Council shall be
allowed travel expenses at rates authorized for an employee of
an agency under subchapter I of chapter 57 of title 5, United
States Code, while away from the home or regular place of
business of the member in the performance of the duties of the
Council.
(g) Termination of Council.--The Council shall terminate at the end
of the eighth fiscal year beginning on or after the date of the
enactment of this Act.
(h) National Office of Drought Preparedness.--
(1) Establishment.--The Secretary shall establish an office
to be known as the ``National Office of Drought Preparedness''
to provide assistance to the Council.
(2) Director of the office.--
(A) Appointment.--
(i) In general.--The Under Secretary shall
appoint a Director of the Office under sections
3371 through 3375 of title 5, United States
Code.
(ii) Qualifications.--The Director of the
Office shall be a person who has experience
in--
(I) public administration; and
(II) drought mitigation or drought
management.
(B) Powers.--The Director of the Office may hire
such other additional personnel or contract for
services with other entities as necessary to carry out
the duties of the Office.
(3) Detail of government employees.--
(A) In general.--Except for the requirements of
section 204, an employee of the Federal Government may
be detailed to the Office without reimbursement, unless
the Secretary, on the recommendation of the Director of
the Office, determines that reimbursement is
appropriate.
(B) Civil service status.--The detail of an
employee shall be without interruption or loss of civil
service status or privilege.
(i) Drought Assistance Fund.--
(1) Establishment.--There is established within the
Department of Agriculture a fund to be known as the ``Drought
Assistance Fund''.
(2) Purpose.--The Fund shall be used to pay the costs of--
(A) providing technical and financial assistance
(including grants and cooperative assistance) to
States, Indian tribes, local governments, watershed
groups, and critical service providers for the
development and implementation of drought preparedness
plans;
(B) providing to States, Indian tribes, local
governments, watershed groups, and critical service
providers the Federal share, as determined by the
Secretary, in consultation with the other members of
the Council, of the cost of mitigating the overall risk
and impacts of droughts;
(C) assisting States, Indian tribes, local
governments, watershed groups, and critical service
providers in the development of mitigation measures to
address environmental, economic, and human health and
safety issues relating to drought; and
(D) expanding the technology transfer of drought
and water conservation strategies and innovative water
supply techniques.
(3) Guidelines.--
(A) In general.--The Secretary, in consultation
with the non-Federal co-chair of the Council and with
the concurrence of the Council, shall develop and
promulgate guidelines to implement this subsection.
(B) Requirements.--The guidelines shall address the
following:
(i) Ensure the distribution of amounts from
the Fund within a reasonable period of time.
(ii) Take into consideration regional
differences.
(iii) Take into consideration all impacts
of drought in a balanced manner.
(iv) Prohibit the use of amounts from the
Fund for Federal salaries that are not directly
related to the provision of drought assistance.
(v) Require that distribution of amounts
from the Fund granted to States, local
governments, watershed groups, and critical
service providers to meet the requirements of
this subsection be coordinated with and managed
by the State in which such local government or
critical service provider is located,
consistent with the drought preparedness
priorities and relevant water management plans
within the State.
(vi) Require that distribution of amounts
from the Fund granted to Indian tribes to meet
the requirements of this subsection be used to
implement plans that are, to the extent
practicable, in coordination with each State in
which lands of the Indian tribe are located and
consistent with existing drought preparedness
and water management plans of such States.
(vii) Require that a State, Indian tribe,
local government, watershed group, or critical
service provider that receives Federal funds
under paragraph (2) or (3) of subsection (b)
cover not less than 25 percent of the overall
cost incurred in carrying out the project for
which the Federal funds are provided. This cost
sharing requirement may be satisfied using non-
Federal grants or cash donations made by non-
Federal third parties.
(4) Special requirement for interstate watersheds.--
(A) Development of drought preparedness plans.--In
order to receive funds under this subsection to develop
drought preparedness plans for interstate watersheds,
the guidelines shall also require the relevant States,
Indian tribes, or both, in which the watershed is
located, to coordinate in the development of the
drought preparedness plan. The development of such
plans shall--
(i) be consistent with the relevant States'
and Tribal water laws, policies, and
agreements;
(ii) be consistent and coordinated with any
existing interstate stream compacts;
(iii) include the participation of any
relevant watershed groups located in the
relevant States, Indian tribes, or both; and
(iv) recognize that implementation of the
interstate drought preparedness plan will
involve further coordination among the relevant
States, Indian tribes, or both, except that
each State and Indian tribe has sole
jurisdiction over implementation of that
portion of the watershed that exists within
their boundaries.
(B) Implementation of drought preparedness plans.--
In order to receive funds under this subsection to
implement drought preparedness plans for interstate
watersheds, the guidelines shall also require, to the
extent practicable, the relevant States, Indian tribes,
or both, in which the watershed is located, to
coordinate in the implementation of the drought
preparedness plan, recognizing the sovereignty of the
States and Indian tribes. Implementation of interstate
drought preparedness plans shall--
(i) be contingent upon the existence of a
drought preparedness plan, but not require the
distribution of funds to all States and Indian
tribes in which the watershed is located;
(ii) consider the level of impact within
the watershed on each of the relevant States,
Indian tribes, or both; and
(iii) not impede on State water rights
established as of the date of enactment of this
Act.
(j) Drought Preparedness Plans.--
(1) In general.--The Secretary shall--
(A) with the concurrence of the Council, jointly
develop guidelines for administering a national program
to provide technical and financial assistance to
States, Indian tribes, local governments, watershed
groups, and critical service providers for the
development, maintenance, and implementation of drought
preparedness plans; and
(B) promulgate the guidelines developed under
subparagraph (A).
(2) Requirements.--To build on the experience and avoid
duplication of efforts of Federal, State, local, tribal, and
regional drought plans in existence on the date of enactment of
this Act, the guidelines may recognize and incorporate those
plans.
(3) Federal plans.--
(A) In general.--The Secretary and other
appropriate Federal agency heads shall develop and
implement Federal drought preparedness plans for
agencies under the jurisdiction of the appropriate
Federal agency head.
(B) Requirements.--The Federal plans--
(i) shall be integrated with each other;
(ii) may be included as components of other
Federal planning requirements;
(iii) shall be integrated with drought
preparedness plans of State, tribal, and local
governments that are affected by Federal
projects and programs; and
(iv) shall be completed not later than two
years after the date of the enactment of this
Act.
(4) State and tribal plans.--States and Indian tribes may
develop and implement State and tribal drought preparedness
plans that--
(A) address monitoring of resource conditions that
are related to drought;
(B) identify areas that are at a high risk for
drought;
(C) describes mitigation strategies to address and
reduce the vulnerability of an area to drought; and
(D) are integrated with State, tribal, and local
water plans in existence on the date of enactment of
this Act.
(5) Regional and local plans.--Local governments, watershed
groups, and regional water providers may develop and implement
drought preparedness plans that--
(A) address monitoring of resource conditions that
are related to drought;
(B) identify areas that are at a high risk for
drought;
(C) describe mitigation strategies to address and
reduce the vulnerability of an area to drought; and
(D) are integrated with corresponding State plans.
(6) Plan elements.--A drought preparedness plan--
(A) shall be consistent with Federal and State
laws, contracts, and policies;
(B) shall allow each State to continue to manage
water and wildlife in the State;
(C) shall address the health, safety, and economic
interests of those persons directly affected by
drought;
(D) shall address the economic impact on resource-
dependent businesses and industries, including regional
tourism;
(E) may include--
(i) provisions for water management
strategies to be used during various drought or
water shortage thresholds, consistent with
State water law;
(ii) provisions to address key issues
relating to drought (including public health,
safety, economic factors, and environmental
issues such as water quality, water quantity,
protection of threatened and endangered
species, and fire management);
(iii) provisions that allow for public
participation in the development, adoption, and
implementation of drought plans;
(iv) provisions for periodic drought
exercises, revisions, and updates;
(v) a hydrologic characterization study to
determine how water is being used during times
of normal water supply availability to
anticipate the types of drought mitigation
actions that would most effectively improve
water management during a drought;
(vi) drought triggers;
(vii) specific implementation actions for
droughts;
(viii) a water shortage allocation plan,
consistent with State water law; and
(ix) comprehensive insurance and financial
strategies to manage the risks and financial
impacts of droughts; and
(F) shall take into consideration--
(i) the financial impact of the plan on the
ability of the utilities to ensure rate
stability and revenue stream; and
(ii) economic impacts from water shortages.
(k) Authorization of Appropriations.--
(1) Council.--There is authorized to be appropriated to
carry out the activities of the Council $2,000,000 for fiscal
year 2008 and for each of the subsequent seven fiscal years.
(2) Fund.--There are authorized to be appropriated to the
Fund such sums as are necessary to carry out subsection (i).
SEC. 11013. PAYMENT OF PORTION OF PREMIUM FOR AREA REVENUE PLANS.
Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e))
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. 11014. SHARE OF RISK.
(a) In General.--Section 508(k)(3) of the Federal Crop Insurance
Act (7 U.S.C. 1508(k)(3)) is amended--
(1) by striking ``require the'' and inserting ``require--
``(A) the'';
(2) by striking the period at the end and inserting ``;
and''; and
(3) by adding at the end the following:
``(B)(i) the cumulative underwriting gain or loss,
and the associated premium and losses with such amount,
calculated under any reinsurance agreement (except
livestock) ceded to the Corporation by each approved
insurance provider to be not less than 12.5 percent;
and
``(ii) the Corporation to pay a ceding commission
to reinsured companies of 2 percent of the premium used
to define the loss ratio for the approved insurance
provider's book of business that is described in clause
(i).''.
(b) Conforming Amendments.--Section 516(a)(2) of the Federal Crop
Insurance Act (7 U.S.C. 1516(a)(2)) is amended by adding at the end the
following new subparagraph:
``(E) Costs associated with the ceding commissions
described in section 508(k)(3)(B)(ii).''.
(c) Effective Date.--This section shall take effect on the first
June 30th after the date of the enactment of this Act.
SEC. 11015. LIVESTOCK ASSISTANCE.
Notwithstanding any other provision of law, the purchase of a Non-
insured Assistance Program policy shall not be a requirement to receive
any Federal livestock disaster assistance.
SEC. 11016. DETERMINATION OF CERTAIN SWEET POTATO PRODUCTION.
In the case of sweet potatoes, Risk Management Agency Pilot Program
data shall not be considered for purposes of determining production for
the 2005-2006 Farm Service Agency Crop Disaster Program.
Subtitle B--Livestock and Poultry
SEC. 11101. SENSE OF CONGRESS REGARDING PSEUDORABIES ERADICATION
PROGRAM.
It is the sense of Congress that--
(1) the Secretary should recognize the threat feral swine
pose to the domestic swine population;
(2) keeping the United States commercial swine herd free of
pseudorabies is essential to maintaining and growing pork
export markets;
(3) the establishment 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. 11102. ARBITRATION OF LIVESTOCK AND POULTRY CONTRACTS.
The Packers and Stockyards Act, 1921 (7 U.S.C. 181 et seq.) is
amended--
(1) by redesignating section 416 as section 417; and
(2) by inserting after section 415 the following new
section:
``SEC. 416. ARBITRATION OF LIVESTOCK AND POULTRY CONTRACTS.
``(a) Issuance of Regulations.--The Secretary of Agriculture shall
promulgate regulations to establish standards related to the inclusion
of arbitration provisions in livestock and poultry production
contracts.
``(b) Content.--Such regulations shall--
``(1) establish permissible agreements with respect to
venue of arbitration, allocation of arbitration costs, number
and appointment of arbitrators, and any other element of an
arbitration agreement that the Secretary determines to be
necessary;
``(2) permit a producer to seek relief in a small claims
court in lieu of arbitration for disputes or claims within the
jurisdiction of a small claims court, despite the existence of
an arbitration agreement; and
``(3) require any person appointed or to be appointed as an
arbitrator to disclose any circumstance likely to raise doubt
as to the arbitrator's impartiality.''.
SEC. 11103. STATE-INSPECTED MEAT AND POULTRY.
(a) Review of State Meat and Poultry Inspection Programs.--
(1) Report.--Not later than 30 days after the date of the
enactment of this Act, the Secretary of Agriculture shall
submit to Congress a report containing the results of a review
by the Secretary of each State meat and poultry inspection
program. Such report shall include--
(A) a determination of the effectiveness of each
State meat and poultry inspection program; and
(B) an identification of changes that are necessary
to enable future transition to a State program of
enforcing Federal inspection requirements as described
in the amendments made by subsections (b) and (c).
(2) Authorization of appropriations.--
(A) In general.--There are authorized to be
appropriated such sums as are necessary to carry out
this section.
(B) Available funds.--Notwithstanding any other
provision of law, only funds specifically appropriated
under subparagraph (A) may be used to carry out this
subsection.
(b) State Meat Inspection Programs.--
(1) In general.--Title III of the Federal Meat Inspection
Act (21 U.S.C. 661 et seq.) is amended to read as follows:
``TITLE III--STATE MEAT INSPECTION PROGRAMS
``SEC. 301. POLICY AND FINDINGS.
``(a) Policy.--It is the policy of Congress to protect the public
from meat and meat food products that are adulterated or misbranded and
to assist in efforts by State and other government agencies to
accomplish that policy.
``(b) Findings.--Congress finds that--
``(1) the goal of a safe and wholesome supply of meat and
meat food products throughout the United States would be better
served if a consistent set of requirements, established by the
Federal Government, were applied to all meat and meat food
products, whether produced under State inspection or Federal
inspection;
``(2) under such a system, State and Federal meat
inspection programs would function together to create a
seamless inspection system to ensure food safety and inspire
consumer confidence in the food supply in interstate commerce;
and
``(3) such a system would ensure the viability of State
meat inspection programs, which should help to foster the
viability of small establishments.
``SEC. 302. APPROVAL OF STATE MEAT INSPECTION PROGRAMS.
``(a) In General.--Notwithstanding any other provision of this Act,
the Secretary may approve a State meat inspection program and allow the
shipment in commerce of carcasses, parts of carcasses, meat, and meat
food products inspected under the State meat inspection program in
accordance with this title.
``(b) Eligibility.--
``(1) In general.--To receive or maintain approval from the
Secretary for a State meat inspection program in accordance
with subsection (a), a State shall--
``(A) implement a State meat inspection program
that enforces the mandatory antemortem and postmortem
inspection, reinspection, sanitation, and related
Federal requirements of titles I, II, and IV (including
the regulations, directives, notices, policy memoranda,
and other regulatory requirements issued under those
titles); and
``(B) enter into a cooperative agreement with the
Secretary in accordance with subsection (c).
``(2) Additional requirements.--
``(A) In general.--In addition to the requirements
described in paragraph (1), a State meat inspection
program reviewed in accordance with section 11103(a) of
the Farm, Nutrition, and Bioenergy Act of 2007 shall
implement, not later than 180 days after the date on
which the report is submitted under subsection (b) of
such section, all recommendations from the review, in a
manner approved by the Secretary.
``(B) Review of new state meat inspection
programs.--
``(i) Review requirement.--Not later than
one year after the date on which the Secretary
approves a new State meat inspection program,
the Secretary shall conduct a review of the new
State meat inspection program, which shall
include--
``(I) a determination of the
effectiveness of the new State meat
inspection program; and
``(II) identification of changes
necessary to ensure enforcement of
Federal inspection requirements.
``(ii) Implementation requirements.--In
addition to the requirements described in
paragraph (1), to continue to be an approved
State meat inspection program, a new State meat
inspection program shall implement all
recommendations from the review conducted in
accordance with this subparagraph, in a manner
approved by the Secretary.
``(iii) Definition of new state meat
inspection program.--In this subparagraph, the
term `new State meat inspection program' means
a State meat inspection program that is not
approved in accordance with subsection (a)
between the effective date of the Farm,
Nutrition, and Bioenergy Act of 2007 and the
date that is one year after the effective date
of such Act.
``(c) Cooperative Agreement.--Notwithstanding chapter 63 of title
31, United States Code, the Secretary may enter into a cooperative
agreement with a State that--
``(1) establishes the terms governing the relationship
between the Secretary and the State meat inspection program;
``(2) provides that the State will adopt (including
adoption by reference) provisions identical to titles I, II,
and IV (including the regulations, directives, notices, policy
memoranda, and other regulatory requirements issued under those
titles);
``(3) provides that State-inspected and passed meat and
meat food products shall be marked with a mark of State
inspection, which shall be deemed to be an official mark, in
accordance with requirements issued by the Secretary;
``(4) provides that the State will comply with all labeling
requirements issued by the Secretary governing meat and meat
food products inspected under the State meat inspection
program;
``(5) provides that the Secretary shall have authority--
``(A) to detain and seize livestock, carcasses,
parts of carcasses, meat, and meat food products under
the State meat inspection program;
``(B) to obtain access to facilities, records,
livestock, carcasses, parts of carcasses, meat, and
meat food products of any person, firm, or corporation
that slaughters, processes, handles, stores,
transports, or sells meat or meat food products
inspected under the State meat inspection program to
determine compliance with this Act (including the
regulations issued under this Act); and
``(C) to direct the State to conduct any activity
authorized to be conducted by the Secretary under this
Act (including the regulations issued under this Act);
and
``(6) includes such other terms as the Secretary determines
to be necessary to ensure that the actions of the State and the
State meat inspection program are consistent with this Act
(including the regulations, directives, notices, policy
memoranda, and other regulatory requirements issued under this
Act).
``(d) Restriction on Establishment Size.--After the date that is 90
days after the effective date of the Farm, Nutrition, and Bioenergy Act
of 2007, establishments with more than 50 employees may not be accepted
into a State meat inspection program. Any establishment that is subject
to state inspection on such date, may remain subject to State
inspection.
``(e) Reimbursement of State Costs.--The Secretary may reimburse a
State for not more than 50 percent of the State's costs of meeting the
Federal requirements for the State meat inspection program.
``(f) Sampling.--A duly authorized representative of the Secretary
shall be afforded access to State inspected establishments to take
reasonable samples of the inventory of such establishments upon payment
of the fair market value therefor.
``(g) Noncompliance.--If the Secretary determines that a State meat
inspection program does not comply with this title or the cooperative
agreement under subsection (c), the Secretary shall take such action as
the Secretary determines to be necessary to ensure that the carcasses,
parts of carcasses, meat, and meat food products in the State are
inspected in a manner that effectuates this Act (including the
regulations, directives, notices, policy memoranda, and other
regulatory requirements issued under this Act).
``SEC. 303. AUTHORITY TO TAKE OVER STATE MEAT INSPECTION PROGRAMS.
``(a) Notification.--If the Secretary has reason to believe that a
State is not in compliance with this Act (including the regulations,
directives, notices, policy memoranda, and other regulatory
requirements issued under this Act) or the cooperative agreement under
section 302(c) and is considering the revocation or temporary
suspension of the approval of the State meat inspection program, the
Secretary shall promptly notify and consult with the Governor of the
State.
``(b) Suspension and Revocation.--
``(1) In general.--The Secretary may revoke or temporarily
suspend the approval of a State meat inspection program and
take over a State meat inspection program if the Secretary
determines that the State meat inspection program is not in
compliance with this Act (including the regulations,
directives, notices, policy memoranda, and other regulatory
requirements issued under this Act) or the cooperative
agreement under section 302(c).
``(2) Procedures for reinstatement.--A State meat
inspection program that has been the subject of a revocation
may be reinstated as an approved State meat inspection program
under this Act only in accordance with the procedures under
section 302(b)(2)(B).
``(c) Publication.--If the Secretary revokes or temporarily
suspends the approval of a State meat inspection program in accordance
with subsection (b), the Secretary shall publish notice of the
revocation or temporary suspension under that subsection in the Federal
Register.
``(d) Inspection of Establishments.--Not later than 30 days after
the date of publication of a determination under subsection (c), an
establishment subject to a State meat inspection program with respect
to which the Secretary makes a determination under subsection (b) shall
be inspected by the Secretary.
``SEC. 304. EXPEDITED AUTHORITY TO TAKE OVER INSPECTION OF STATE-
INSPECTED ESTABLISHMENTS.
``Notwithstanding any other provision of this title, if the
Secretary determines that an establishment operating under a State meat
inspection program is not operating in accordance with this Act
(including the regulations, directives, notices, policy memoranda, and
other regulatory requirements issued under this Act) or the cooperative
agreement under section 302(c), and the State, after notification by
the Secretary to the Governor, has not taken appropriate action within
a reasonable time as determined by the Secretary, the Secretary may
immediately determine that the establishment is an establishment that
shall be inspected by the Secretary, until such time as the Secretary
determines that the State will meet the requirements of this Act
(including the regulations, directives, notices, policy memoranda, and
other regulatory requirements) and the cooperative agreement with
respect to the establishment.
``SEC. 305. ANNUAL REVIEW.
``(a) In General.--The Secretary shall develop and implement a
process to annually review each State meat inspection program approved
under this title and to certify the State meat inspection programs that
comply with the cooperative agreement entered into with the State under
section 302(c).
``(b) Comment From Interested Parties.--In developing the review
process described in subsection (a), the Secretary shall solicit
comment from interested parties.
``SEC. 306. FEDERAL INSPECTION OPTION.
``(a) In General.--An establishment that operates in a State with
an approved State meat inspection program may apply for inspection
under the State meat inspection program or for Federal inspection.
``(b) Limitation.--An establishment shall not make an application
under subsection (a) more than once every four years.''.
(2) Restaurants and retail stores.--Title IV of the Federal
Meat Inspection Act is amended--
(A) by redesignating section 411 (21 U.S.C. 681) as
section 414; and
(B) by inserting after section 410 (21 U.S.C. 680)
the following:
``SEC. 411. RESTAURANTS AND RETAIL STORES.
``(a) Limitation on Applicability of Inspection Requirements.--The
provisions of this Act requiring inspection of the slaughter of animals
and the preparation of carcasses, parts of carcasses, meat, and meat
food products shall not apply to operations of types traditionally and
usually conducted at retail stores and restaurants, as determined by
the Secretary, if the operations are conducted at a retail store,
restaurant, or similar retail establishment for sale of such prepared
articles in normal retail quantities or for service of the articles to
consumers at such an establishment.
``(b) Central Kitchen Facilities.--
``(1) In general.--For the purposes of this section,
operations conducted at a central kitchen facility of a
restaurant shall be considered to be conducted at a restaurant
if the central kitchen of the restaurant prepares meat or meat
food products that are ready to eat when they leave the
facility and are served in meals or as entrees only to
customers at restaurants owned or operated by the same person,
firm, or corporation that owns or operates the facility.
``(2) Exception.--A facility described in paragraph (1)
shall be subject to section 202 and may be subject to the
inspection requirements of title I for as long as the Secretary
determines to be necessary, if the Secretary determines that
the sanitary conditions or practices of the facility or the
processing procedures or methods at the facility are such that
any of the meat or meat food products of the facility are
rendered adulterated.
``SEC. 412. ACCEPTANCE OF INTERSTATE SHIPMENTS OF MEAT AND MEAT FOOD
PRODUCTS.
``Notwithstanding any provision of State law, a State or local
government shall not prohibit or restrict the movement or sale of meat
or meat food products that have been inspected and passed in accordance
with this Act for interstate commerce.
``SEC. 413. ADVISORY COMMITTEES FOR FEDERAL AND STATE PROGRAMS.
``The Secretary may appoint advisory committees consisting of such
representatives of appropriate State agencies as the Secretary and the
State agencies may designate to consult with the Secretary concerning
State and Federal programs with respect to meat inspection and other
matters within the scope of this Act.''.
(c) State Poultry Inspection Programs.--
(1) In general.--The Poultry Products Inspection Act (21
U.S.C. 451 et seq.) is amended by striking section 5 and
inserting the following:
``SEC. 5. STATE POULTRY INSPECTION PROGRAMS.
``(a) Policy.--It is the policy of Congress to protect the public
from poultry products that are adulterated or misbranded and to assist
in efforts by State and other government agencies to accomplish that
policy.
``(b) Findings.--Congress finds that--
``(1) the goal of a safe and wholesome supply of poultry
products throughout the United States would be better served if
a consistent set of requirements, established by the Federal
Government, were applied to all poultry products, whether
produced under State inspection or Federal inspection;
``(2) under such a system, State and Federal poultry
inspection programs would function together to create a
seamless inspection system to ensure food safety and inspire
consumer confidence in the food supply in interstate commerce;
and
``(3) such a system would ensure the viability of State
poultry inspection programs, which should help to foster the
viability of small official establishments.
``(c) Approval of State Poultry Inspection Programs.--
``(1) In general.--Notwithstanding any other provision of
this Act, the Secretary may approve a State poultry inspection
program and allow the shipment in commerce of poultry products
inspected under the State poultry inspection program in
accordance with this section and section 5A.
``(2) Eligibility.--
``(A) In general.--To receive or maintain approval
from the Secretary for a State poultry inspection
program in accordance with paragraph (1), a State
shall--
``(i) implement a State poultry inspection
program that enforces the mandatory antemortem
and postmortem inspection, reinspection,
sanitation, and related Federal requirements of
sections 1 through 4 and 6 through 33
(including the regulations, directives,
notices, policy memoranda, and other regulatory
requirements issued under those sections); and
``(ii) enter into a cooperative agreement
with the Secretary in accordance with paragraph
(3).
``(B) Additional requirements.--
``(i) In general.--In addition to the
requirements described in subparagraph (A), a
State poultry inspection program reviewed in
accordance with section 11103(a) of the Farm,
Nutrition, and Bioenergy Act of 2007 shall
implement, not later 180 days after the date on
which the report is submitted under subsection
(b) of such section, all recommendations from
the review, in a manner approved by the
Secretary.
``(ii) Review of new state poultry
inspection programs.--
``(I) Review requirement.--Not
later than one year after the date on
which the Secretary approves a new
State poultry inspection program, the
Secretary shall conduct a review of the
new State poultry inspection program,
which shall include--
``(aa) a determination of
the effectiveness of the new
State poultry inspection
program; and
``(bb) identification of
changes necessary to ensure
enforcement of Federal
inspection requirements.
``(II) Implementation
requirements.--In addition to the
requirements described in subparagraph
(A), to continue to be an approved
State poultry inspection program, a new
State poultry inspection program shall
implement all recommendations from the
review conducted in accordance with
this clause, in a manner approved by
the Secretary.
``(III) Definition of new state
poultry inspection program.--In this
clause, the term `new State poultry
inspection program' means a State
poultry inspection program that is not
approved in accordance with paragraph
(1) between the effective date of the
Farm, Nutrition, and Bioenergy Act of
2007 and the date that is one year
after the effective date of such Act.
``(3) Cooperative agreement.--Notwithstanding chapter 63 of
title 31, United States Code, the Secretary may enter into a
cooperative agreement with a State that--
``(A) establishes the terms governing the
relationship between the Secretary and the State
poultry inspection program;
``(B) provides that the State will adopt (including
adoption by reference) provisions identical to sections
1 through 4 and 6 through 33 (including the
regulations, directives, notices, policy memoranda, and
other regulatory requirements issued under those
sections);
``(C) provides that State-inspected and passed
poultry products may be marked with the mark of State
inspection, which shall be deemed to be an official
mark, in accordance with requirements issued by the
Secretary;
``(D) provides that the State will comply with all
labeling requirements issued by the Secretary governing
poultry products inspected under the State poultry
inspection program;
``(E) provides that the Secretary shall have
authority--
``(i) to detain and seize poultry and
poultry products under the State poultry
inspection program;
``(ii) to obtain access to facilities,
records, and poultry products of any person
that slaughters, processes, handles, stores,
transports, or sells poultry products inspected
under the State poultry inspection program to
determine compliance with this Act (including
the regulations issued under this Act); and
``(iii) to direct the State to conduct any
activity authorized to be conducted by the
Secretary under this Act (including the
regulations issued under this Act); and
``(F) includes such other terms as the Secretary
determines to be necessary to ensure that the actions
of the State and the State poultry inspection program
are consistent with this Act (including the
regulations, directives, notices, policy memoranda, and
other regulatory requirements issued under this Act).
``(4) Restriction on establishment size.--After the date
that is 90 days after the effective date of the Farm,
Nutrition, and Bioenergy Act of 2007, establishments with more
than 50 employees may not be accepted into a State meat
inspection program. Any establishment that is subject to state
inspection on such date may remain subject to state inspection.
``(5) Reimbursement of state costs.--The Secretary may
reimburse a State for not more than 60 percent of the State's
costs of meeting the Federal requirements for the State poultry
inspection program.
``(6) Sampling.--A duly authorized representative of the
Secretary shall be afforded access to State inspected
establishments to take reasonable samples of their inventory
upon payment of the fair market value therefor.
``(7) Noncompliance.--If the Secretary determines that a
State poultry inspection program does not comply with this
section, section 5A, or the cooperative agreement under
paragraph (3), the Secretary shall take such action as the
Secretary determines to be necessary to ensure that the poultry
products in the State are inspected in a manner that
effectuates this Act (including the regulations, directives,
notices, policy memoranda, and other regulatory requirements
issued under this Act).
``(d) Annual Review.--
``(1) In general.--The Secretary shall develop and
implement a process to annually review each State poultry
inspection program approved under this section and to certify
the State poultry inspection programs that comply with the
cooperative agreement entered into with the State under
subsection (c)(3).
``(2) Comment from interested parties.--In developing the
review process described in paragraph (1), the Secretary shall
solicit comment from interested parties.
``(e) Federal Inspection Option.--
``(1) In general.--An official establishment that operates
in a State with an approved State poultry inspection program
may apply for inspection under the State poultry inspection
program or for Federal inspection.
``(2) Limitation.--An official establishment shall not make
an application under paragraph (1) more than once every 4
years.
``SEC. 5A. AUTHORITY TO TAKE OVER STATE POULTRY INSPECTION ACTIVITIES.
``(a) Authority To Take Over State Poultry Inspection Programs.--
``(1) Notification.--If the Secretary has reason to believe
that a State is not in compliance with this Act (including the
regulations, directives, notices, policy memoranda, and other
regulatory requirements issued under this Act) or the
cooperative agreement under section 5(c)(3) and is considering
the revocation or temporary suspension of the approval of the
State poultry inspection program, the Secretary shall promptly
notify and consult with the Governor of the State.
``(2) Suspension and revocation.--
``(A) In general.--The Secretary may revoke or
temporarily suspend the approval of a State poultry
inspection program and take over a State poultry
inspection program if the Secretary determines that the
State poultry inspection program is not in compliance
with this Act (including the regulations, directives,
notices, policy memoranda, and other regulatory
requirements issued under this Act) or the cooperative
agreement.
``(B) Procedures for reinstatement.--A State
poultry inspection program that has been the subject of
a revocation may be reinstated as an approved State
poultry inspection program under this Act only in
accordance with the procedures under section
5(c)(2)(B)(ii).
``(3) Publication.--If the Secretary revokes or temporarily
suspends the approval of a State poultry inspection program in
accordance with paragraph (2), the Secretary shall publish
notice of the revocation or temporary suspension under that
paragraph in the Federal Register.
``(4) Inspection of establishments.--Not later than 30 days
after the date of publication of a determination under
paragraph (3), an official establishment subject to a State
poultry inspection program with respect to which the Secretary
makes a determination under paragraph (2) shall be inspected by
the Secretary.
``(b) Expedited Authority To Take Over Inspection of State-
Inspected Official Establishments.--Notwithstanding any other provision
of this title, if the Secretary determines that an official
establishment operating under a State poultry inspection program is not
operating in accordance with this Act (including the regulations,
directives, notices, policy memoranda, and other regulatory
requirements issued under this Act) or the cooperative agreement under
section 5(c)(3), and the State, after notification by the Secretary to
the Governor, has not taken appropriate action within a reasonable time
as determined by the Secretary, the Secretary may immediately determine
that the official establishment is an establishment that shall be
inspected by the Secretary, until such time as the Secretary determines
that the State will meet the requirements of this Act (including the
regulations, directives, notices, policy memoranda, and other
regulatory requirements) and the cooperative agreement with respect to
the official establishment.''.
(2) Restaurants and retail stores, acceptance of interstate
shipments of poultry products, and advisory committees for
federal and state programs.--The Poultry Products Inspection
Act (21 U.S.C. 451 et seq.) is amended by inserting after
section 30 the following:
``SEC. 31. RESTAURANTS AND RETAIL STORES.
``(a) Limitation on Applicability of Inspection Requirements.--The
provisions of this Act requiring inspection of the slaughter of poultry
and the processing of poultry products shall not apply to operations of
types traditionally and usually conducted at retail stores and
restaurants, if the operations are conducted at a retail store,
restaurant, or similar retail establishment for sale of such prepared
articles in normal retail quantities or for service of the articles to
consumers at such an establishment.
``(b) Central Kitchen Facilities.--
``(1) In general.--For the purposes of this section,
operations conducted at a central kitchen facility of a
restaurant shall be considered to be conducted at a restaurant
if the central kitchen of the restaurant prepares poultry
products that are ready to eat when they leave the facility and
are served in meals or as entrees only to customers at
restaurants owned or operated by the same person that owns or
operates the facility.
``(2) Exception.--A facility described in paragraph (1)
shall be subject to section 11(b) and may be subject to the
inspection requirements of this Act for as long as the
Secretary determines to be necessary, if the Secretary
determines that the sanitary conditions or practices of the
facility or the processing procedures or methods at the
facility are such that any of the poultry products of the
facility are rendered adulterated.
``SEC. 32. ACCEPTANCE OF INTERSTATE SHIPMENTS OF POULTRY PRODUCTS.
``Notwithstanding any provision of State law, a State or local
government shall not prohibit or restrict the movement or sale of
poultry products that have been inspected and passed in accordance with
this Act for interstate commerce.
``SEC. 33. ADVISORY COMMITTEES FOR FEDERAL AND STATE PROGRAMS.
``The Secretary may appoint advisory committees consisting of such
representatives of appropriate State agencies as the Secretary and the
State agencies may designate to consult with the Secretary concerning
State and Federal programs with respect to poultry product inspection
and other matters within the scope of this Act.''.
(d) Regulations.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Agriculture shall promulgate
such regulations as are necessary to implement the amendments made by
subsections (b) and (c).
(e) Effective Date.--The amendments made by subsections (b) and (c)
of this Act shall take effect on the date that is 180 days after the
date of the enactment of this Act.
SEC. 11104. 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 ``peanuts.'' and
inserting ``peanuts; and''; and
(C) by adding at the end the following new clause:
``(vii) meat produced from goats.'';
(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, and goat.--
``(A) United states country of origin.--A retailer
of a covered commodity that is beef, lamb, pork, or
goat may designate the covered commodity as exclusively
having a United States country of origin only if the
covered commodity is derived from an animal that was--
``(i) exclusively born, raised, and
slaughtered in the United States;
``(ii) born and raised in Alaska or Hawaii
and transported for a period of not more than
60 days through Canada to the United States and
slaughtered in the United States; or
``(iii) present in the United States on or
before January 1, 2008.
``(B) Multiple countries of origin.--A retailer of
a covered commodity that is beef, lamb, pork, or goat
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.
``(C) Imported for immediate slaughter.--A retailer
of a covered commodity that is beef, lamb, pork, or
goat that is derived from an animal that is imported
into the United States for immediate slaughter must
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, or goat
that is derived from an animal that is not born,
raised, or slaughtered in the United States must
designate a country other than the United States as the
country of origin of such commodity.
``(E) Ground beef, pork, and lamb.--The notice of
country of origin for ground beef, ground pork, or
ground lamb shall include--
``(i) a list of all countries of origin of
such ground beef, ground pork, or ground lamb;
or
``(ii) a list of all reasonably possible
countries of origin of such ground beef, ground
pork, or ground lamb.
``(3) Designation of country of origin for fish.--
``(A) In general.--A retailer of a covered
commodity that is farm-raised fish or wild fish may
designate the covered commodity as having a United
States country of origin only if the covered
commodity--
``(i) in the case of farm-raised fish, is
hatched, raised, harvested, and processed in
the United States; and
``(ii) in the case of wild fish, is--
``(I) harvested in the United
States, a territory of the United
States, or a State, or by a vessel that
is documented under chapter 121 of
title 46, United States Code, or
registered in the United States; and
``(II) processed in the United
States, a territory of the United
States, or a State, including the
waters thereof.
``(B) Designation of wild fish and farm-raised
fish.--The notice of country of origin for wild fish
and farm-raised fish shall distinguish between wild
fish and farm-raised fish.
``(4) Designation of country of origin for perishable
agricultural commodities and peanuts.--
``(A) In general.--A retailer of a covered
commodity that is a perishable agricultural commodity
or peanut may designate the covered commodity as having
a United States country of origin only if the covered
commodity is exclusively produced in the United States.
``(B) State, region, locality of the united
states.--With respect to a covered commodity that is a
perishable agricultural commodity produced exclusively
in the United States, designation by a retailer of the
State, region, or locality of the United States where
such commodity was produced shall be sufficient to
identify the United States as the country of origin.'';
and
(B) by striking subsection (d) and inserting the
following:
``(d) Audit Verification System.--
``(1) In general.--The Secretary may conduct an audit of
any person that prepares, stores, handles, or distributes a
covered commodity for retail sale to verify compliance with
this subtitle (including the regulations promulgated under
section 284(b)).
``(2) Record requirements.--
``(A) In general.--A person subject to an audit
under paragraph (1) shall provide the Secretary with
verification of the country of origin of covered
commodities. Records maintained in the course of the
normal conduct of the business of such person,
including animal health papers, import or customs
documents, or producer affidavits, may serve as such
verification.
``(B) Prohibition on requirement of additional
records.--The Secretary may not require a person that
prepares, stores, handles, or distributes a covered
commodity to maintain a record of the country of origin
of a covered commodity other than those maintained in
the course of the normal conduct of the business of
such person.'';
(3) in section 283--
(A) by striking subsections (a) and (c);
(B) by redesignating subsection (b) 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. 11105. SENSE OF CONGRESS REGARDING THE VOLUNTARY CONTROL PROGRAM
FOR LOW PATHOGENIC AVIAN INFLUENZA.
It is the sense of Congress that--
(1) the voluntary control program for low pathogenic avian
influenza is a critical component of the animal health
protection system of the United States, as well as a safeguard
against highly pathogenic avian influenza; and
(2) the Secretary of Agriculture has appropriately provided
for the payment of compensation to owners of poultry and
cooperating State agencies of 100 percent of eligible costs,
and the Secretary should continue to provide such payments at
100 percent of such costs.
SEC. 11106. 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 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.
Subtitle C--Socially Disadvantaged Producers and Limited Resource
Producers
SEC. 11201. OUTREACH AND TECHNICAL ASSISTANCE FOR SOCIALLY
DISADVANTAGED FARMERS AND RANCHERS AND LIMITED RESOURCE
FARMERS AND RANCHERS.
Section 2501 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 2279) is amended--
(1) in subsection (a)--
(A) by striking paragraph (2) and inserting the
following new paragraph:
``(2) Requirements.--The outreach and technical assistance
program under paragraph (1) shall be used--
``(A) to enhance coordination of the outreach,
technical assistance, and education efforts authorized
under agriculture programs; and
``(B) to assist the Secretary in--
``(i) reaching socially disadvantaged or
limited resource farmers and ranchers and
prospective socially disadvantaged or limited
resource farmers and ranchers in an appropriate
manner; and
``(ii) improving the participation of those
farmers and ranchers in Department programs, as
determined under section 2501A.'';
(B) in paragraph (3)--
(i) in subparagraph (A), by striking
``entity to provide information'' and inserting
``entity that has demonstrated an ability to
carry out the requirements described in
paragraph (2) to provide outreach''; and
(ii) by adding at the end the following new
subparagraphs:
``(D) Additional contracting authority.--Any agency
of the Department of Agriculture may make grants and
enter into contracts and cooperative agreements with a
community-based organization that meets the definition
of an eligible entity under subsection (e) in order to
utilize the community-based organization to provide
outreach and technical assistance.
``(E) 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 producers served and
outcomes of such service.
``(iv) The problems and barriers identified
by entities in trying to increase participation
by socially disadvantaged farmers and
ranchers.''; and
(C) in paragraph (4)--
(i) by striking subparagraph (A), and
inserting the following new subparagraph:
``(A) Availability of funds.--Of the funds of the
Commodity Credit Corporation, the Secretary shall make
available $15,000,000 for each of the fiscal years 2008
through 2012 to carry out this subsection.'';
(ii) in subparagraph (B), by striking
``authorized to be appropriated under
subparagraph (A)'' and inserting ``made
available under subparagraph (A)''; and
(iii) 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.''; and
(2) in subsection (e)(5)(A)(ii)--
(A) by inserting ``and on behalf of'' before
``socially''; and
(B) by striking ``2-year'' and inserting ``3-
year''.
SEC. 11202. 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, by striking ``where there is a
demonstrated demand for service'' after ``offices''; and
(2) by striking the second sentence.
SEC. 11203. TRANSPARENCY AND ACCOUNTABILITY FOR SOCIALLY DISADVANTAGED
FARMERS AND 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 and 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. 11204. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.
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 new subsection:
``(h) Availability of Funds.--Of the funds of the Commodity Credit
Corporation, the Secretary shall make available $15,000,000 for each of
the fiscal years 2008 through 2012 to carry out this section.''.
SEC. 11205. PROVISION OF RECEIPT FOR SERVICE OR DENIAL OF SERVICE.
In any case in which a producer or landowner, or prospective
producer or landowner, requests from the Department of Agriculture any
benefit or service offered by the Department to agricultural producers
or landowners, the Secretary of Agriculture shall provide for the
issuance, on the date on which the producer or landowner, or
prospective producer or landowner, makes the request, a receipt
containing--
(1) the date, place, and subject of the request; and
(2) the action taken, not taken, or recommendations made in
response to the request.
SEC. 11206. TRACKING OF SOCIALLY DISADVANTAGED FARMERS AND RANCHERS AND
LIMITED RESOURCE FARMERS AND RANCHERS IN CENSUS OF
AGRICULTURE AND CERTAIN STUDIES.
The Secretary of Agriculture shall ensure, to the maximum extent
practicable, that the Census of Agriculture and studies carried out by
the Economic Research Service accurately document the number, location,
and economic contributions of socially disadvantaged farmers and
ranchers and limited resource farmers and ranchers in agricultural
production.
SEC. 11207. FARMWORKER COORDINATOR.
(a) Establishment.--The Secretary of Agriculture shall establish
the position of Farmworker Coordinator (in this section referred to as
the ``Coordinator''), which shall be located in the Office of Outreach
of the Department of Agriculture.
(b) Duties.--The Secretary may delegate to the Coordinator
responsibility for any or all of the following:
(1) Assisting in administering the program established by
section 2281 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (42 U.S.C. 5177a).
(2) Serving as a liaison to community-based non-profit
organizations that represent, and have demonstrated experience
serving, low-income migrant and seasonal farmworkers.
(3) Coordinating with the Department of Agriculture and
State and local governments to assure that farmworker needs are
assessed and met during declared disasters and other
emergencies.
(4) Consulting with the Office of Small Farm Coordination,
Office of Outreach, Outreach Coordinators, and other entities
to better integrate farmworker perspectives, concerns, and
interests into the ongoing programs of the Department.
(5) Consulting with Hispanic-serving institutions on
research, program improvements, or agricultural education
opportunities that assist low-income and migrant seasonal
farmworkers.
(6) Assuring that farmworkers have access to services and
support to enter agriculture as producers.
(c) 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. 11208. OFFICE OF OUTREACH RELOCATION.
(a) Relocation Proposal.--Not more than 18 months after the date of
enactment of the Act, the Secretary shall develop a proposal to
relocate the Office of Outreach of the Department of Agriculture.
(b) Administration.--The Office of Outreach shall be responsible
for the administration of--
(1) the outreach and technical assistance program
established under section 2501 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279);
(2) 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); and
(3) the coordination of the outreach activities among the
various agencies within the Department.
(c) Report.--After the relocation described in this section is
completed, the Secretary shall submit to Congress a report that
includes information describing the new location of the program.
SEC. 11209. MINORITY FARMER ADVISORY COMMITTEE.
(a) Establishment.--Not later than 18 months after the date of
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''), which
shall be overseen by the Office of Outreach of the Department of
Agriculture.
(b) Duties.--The Committee shall--
(1) review all civil rights cases to ensure that they are
processed in a timely manner;
(2) ensure that the processing of civil rights cases
complies with applicable laws;
(3) report quarterly to the Secretary of Agriculture on
civil rights enforcement and outreach;
(4) monitor and annually report to Congress on compliance
with all civil rights and related laws by all agencies and
under all programs of the Department;
(5) recommend to the Secretary corrective actions to
prevent civil rights violations;
(6) review the operations of the outreach and technical
assistance program established under section 2501 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
2279); and
(7) review ongoing efforts toward outreach in the agencies
and programs of the Department.
(c) Membership of Committee.--The Committee shall be composed of
the following:
(1) Three members appointed by the Secretary.
(2) Two members appointed by the chairman of the Committee
on Agriculture, Nutrition, and Forestry of the Senate, in
consultation with the ranking member of the Committee.
(3) Two members appointed by the chairman of the Committee
on Agriculture of the House of Representatives, in consultation
with the ranking member of the Committee.
(4) A civil rights professional.
(5) A socially disadvantaged farmer or rancher.
(6) Such other persons or professionals as determined by
the Secretary to be appropriate.
SEC. 11210. 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 Office of
Outreach of the Department of Agriculture.
(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.
Subtitle D--Other Miscellaneous Provisions
SEC. 11301. DESIGNATION OF SEPARATE COTTON-PRODUCING STATES UNDER
COTTON RESEARCH AND PROMOTION ACT.
Section 17(f) of the Cotton Research and Promotion Act (7 U.S.C.
2116(f)) is amended by adding at the end the following new sentence:
``Notwithstanding the preceding sentence, effective beginning with the
2008 crop of cotton, the States of Kansas, Virginia, and Florida shall
each be deemed to be a separate cotton-producing State for the purposes
of this Act.''.
SEC. 11302. COTTON CLASSIFICATION SERVICES.
(a) Extension.--The first sentence of section 3a of the Act of
March 3, 1927 (commonly known as the Cotton Statistics and Estimates
Act; 7 U.S.C. 473a), is amended by striking ``2007'' and inserting
``2012''.
(b) Establishment of Offices.--The second sentence of section 3a of
the Act of March 3, 1927, is amended in the proviso--
(1) by striking ``and'' at the end of clause (6);
(2) by striking the period at the end of clause (7) and
inserting ``; and''; and
(3) by adding at the end the following new clause: ``(8)
the Secretary may enter into long-term lease agreements that
exceed five years or may take title to property, including
through purchase agreements, for the purposes of obtaining
offices to be used for the classification of cotton in
accordance with this Act if the Secretary determines such
action would best effectuate the purposes of this Act.''.
SEC. 11303. AVAILABILITY OF EXCESS AND SURPLUS COMPUTERS IN RURAL
AREAS.
The Secretary of Agriculture may make available to any city or town
located in a rural area (as defined in section 343(a)(13)(A) of the
Consolidated Farm and Rural Development Act) excess or surplus
computers or other technical equipment of the Department of
Agriculture.
SEC. 11304. PERMANENT DEBARMENT FROM PARTICIPATION IN DEPARTMENT OF
AGRICULTURE PROGRAMS FOR FRAUD.
The Secretary of Agriculture is hereby granted the authority to
permanently debar an individual, organization, corporation, or other
entity convicted of 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.
SEC. 11305. NO DISCRIMINATION AGAINST USE OF REGISTERED PESTICIDE
PRODUCTS OR CLASSES OF PESTICIDE PRODUCTS.
In establishing priorities and evaluation criteria for the approval
of plans, contracts, and agreements under title II, the Secretary of
Agriculture shall not discriminate against the use of specific
registered pesticide products or classes of pesticide products.
SEC. 11306. PROHIBITION ON CLOSURE OR RELOCATION OF COUNTY OFFICES FOR
THE FARM SERVICE AGENCY, RURAL DEVELOPMENT AGENCY, AND
NATURAL RESOURCES CONSERVATION SERVICE.
Until the date that is one year 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, Rural Development
Agency, or Natural Resources Conservation Service of the Department of
Agriculture.
SEC. 11307. REGULATION OF EXPORTS OF PLANTS, PLANT PRODUCTS, BIOLOGICAL
CONTROL ORGANISMS, AND NOXIOUS WEEDS.
(a) In General.--Subtitle A of title IV of the Agricultural Risk
Protection Act of 2000 (7 U.S.C. 7701 et seq.) is amended by adding at
the end the following new section:
``SEC. 420. REGULATION OF EXPORTS OF PLANTS, PLANT PRODUCTS, BIOLOGICAL
CONTROL ORGANISMS, AND NOXIOUS WEEDS.
``(a) In General.--The Secretary may regulate plants, plant
products, biological control organisms, and noxious weeds for export
purposes.
``(b) Duties.--The Secretary shall--
``(1) coordinate fruit and vegetable market analyses with
the private sector and the Administrator of Foreign
Agricultural Service; and
``(2) make publicly available on an Internet website--
``(A) the status of all export petitions;
``(B) to the greatest extent possible, an
explanation of the sanitary or phytosanitary issues
associated with each pending export petition; and
``(C) to the greatest extent possible, information
on the import requirements of foreign countries for
fruits and vegetables.
``(c) Regulations.--The Secretary may issue regulations to
implement this section.''.
(b) Table of Contents.--The table of contents in section 1(b) of
such Act (7 U.S.C. 1501 note) is amended by inserting after the item
relating to section 419 the following new item:
``Sec. 420. Regulation of exports of plants, plant products, biological
control organisms, and noxious weeds.''.
SEC. 11308. GRANTS TO REDUCE PRODUCTION OF METHAMPHETAMINES FROM
ANHYDROUS AMMONIA.
(a) Grant Authority.--The Secretary of Agriculture may make a grant
to an eligible entity to enable the entity to obtain and add to an
anhydrous ammonia fertilizer nurse tank a substance which will reduce
the amount of methamphetamine which can be produced from any anhydrous
ammonia removed from the tank.
(b) 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, and
(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 have the
meaning set forth in section 173.315(m) of title 49, Code of
Federal Regulations, as in effect as of the date of the
enactment of this Act.
(c) Grant Amount.--The amount of a grant made under this section to
an entity shall be not less than $40 and not more than $60, multiplied
by the number of fertilizer nurse tanks of the entity.
(d) Limitations on Authorization of Appropriations.--For grants
under this section, there are authorized to be appropriated to the
Secretary a total of not more than $15,000,000 for fiscal years 2008
through 2012.
SEC. 11309. USDA GRADUATE SCHOOL.
(a) Section 921 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 2279b) is amended by striking subsections (a)
through (k) and inserting the following: ``The Department of
Agriculture shall not establish, maintain, or otherwise 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, nonprofit organizations, other entities,
and members of the general public.''.
(b) Effective Date.--The amendment made in subsection (a) apply
beginning October 1, 2008.
SEC. 11310. PREVENTION AND INVESTIGATION OF PAYMENT AND FRAUD AND
ERROR.
Section 1113(k) of the Right to Financial Privacy Act of 1978 (12
U.S.C. 3413(k)) is amended to read as follows:
``(k) Disclosure Necessary for Proper Administration of Programs of
Certain Government Authorities.--
``(1) Disclosure to government authorities.--Nothing in
this title shall apply to the disclosure by the financial
institution of the financial records of any customer to the
Department of the Treasury, the Social Security Administration,
the Railroad Retirement Board, or any other Government
authority that certifies, disburses, or collects payments, when
the disclosure of such information is necessary to, and such
information is used solely for the purposes of--
``(A) the proper administration of section 1441 of
the Internal Revenue Code of 1986 (26 U.S.C. 1441);
``(B) the proper administration of title II of the
Social Security Act (42 U.S.C. 401 et seq.);
``(C) the proper administration of the Railroad
Retirement Act of 1974 (45 U.S.C. 231 et seq.);
``(D) the verification of the identify of any
person in connection with the issuance of a Federal
payment or collection of funds by a Government
authority; or
``(E) the investigation or recovery of an improper
Federal payment or collection of funds, or an
improperly negotiated Treasury check.
``(2) Limitations on subsequent disclosure.--
Notwithstanding any other provision of law, any request
authorized by paragraph (1), and the information contained
therein, may be used by the financial institution and its
agents solely for the purpose of providing the customer's
financial records to the Government authority requesting the
information and shall be barred from redisclosure by the
financial institution or its agents. Any Government authority
receiving information pursuant to paragraph (1) may not
disclose or use the information except for the purposes set
forth in such paragraph.''.
SEC. 11311. SENSE OF CONGRESS REGARDING FOOD DESERTS, GEOGRAPHICALLY
ISOLATED NEIGHBORHOODS AND COMMUNITIES WITH LIMITED OR NO
ACCESS TO MAJOR CHAIN GROCERY STORES.
It is the sense of Congress that the Secretary of Agriculture, in
conjunction with the National Institutes of Health, the Centers for
Disease Control, the Institute of Medicine and faith-based
organizations, should--
(1) conduct a national assessment of food deserts in the
United States, namely those geographically isolated
neighborhoods and communities with limited or no access to
major-chain grocery stores; and
(2) develop recommendations for eliminating food deserts.
SEC. 11312. PIGFORD CLAIMS.
(a) In General.--Any Pigford claimant who has not previously
obtained a determination on the merits of a Pigford claim may, in a
civil action, obtain that determination.
(b) Limitation.--Notwithstanding any other provision of law--
(1) all payments or debt relief (including any limitation
on foreclosure under subsection (f)) made pursuant to an action
commenced under subsection (a) shall be made exclusively from
funds made available pursuant to subsection (h), Provided that
the total amount of payments and debt relief pursuant to an
action commenced under subsection (a) shall not exceed
$100,000,000; and
(2) in no event may such payments or debt relief be made
from the Judgement Fund established by 31 U.S.C. 1304.
(c) Intent of Congress as to Remedial Nature of Section.--It is the
intent of Congress that this section be liberally construed so as to
effectuate its remedial purpose of giving a full determination on the
merits for each Pigford claim denied that determination.
(d) Loan Data.--
(1) Report to person submitting petition.--Not later than
60 days after the Secretary of Agriculture receives notice of a
complaint filed by a claimant under subsection (a), the
Secretary shall provide to the claimant a report on farm credit
loans made within the claimant's county or adjacent county by
the Department during the period beginning on January 1 of the
year preceding the year or years covered by the complaint and
ending on December 31 of year following such year or years.
Such report shall contain information on all persons whose
application for a loan was accepted, including--
(A) the race of the applicant;
(B) the date of application;
(C) the date of the loan decision;
(D) the location of the office making the loan
decision; and
(E) all data relevant to the process of deciding on
the loan.
(2) No personally identifiable information.--The reports
provided pursuant to paragraph (1) shall not contain any
information that would identify any person that applied for a
loan from the Department of Agriculture.
(e) Expedited Resolutions Authorized.--Any person filing a
complaint under this Act for discrimination in the application for, or
making or servicing of, a farm loan, at his or her discretion, may seek
liquidated damages of $50,000, discharge of the debt that was incurred
under, or affected by, the discrimination that is the subject of the
person's complaint, and a tax payment in the amount equal to 25 percent
of the liquidated damages and loan principal discharged, in which
case--
(1) if only such damages, debt discharge, and tax payment
are sought, the complainant shall be able to prove his or her
case by substantial evidence; and
(2) the court shall decide the case based on a review of
documents submitted by the complainant and defendant relevant
to the issues of liability and damages.
(f) Limitation on Foreclosures.--The Secretary of Agriculture may
not begin acceleration on or foreclosure of a loan if a borrower is a
Pigford claimant and, in an appropriate administrative proceeding,
makes a prima facie case that the foreclosure is related to a Pigford
claim.
(g) Definitions.--In this Act--
(1) the term ``Pigford claimant'' means an individual who
previously submitted a late-filing request under section 5(g)
of 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; and
(2) the term ``Pigford claim'' means a discrimination
complaint, as defined by section 1(h) of that consent decree
and documented under section 5(b) of that consent decree.
(h) Funding.--Of the funds of the Commodity Credit Corporation, the
Secretary shall make available $100,000,000 for fiscal year 2008, to
remain available until expended, for payments and debt relief in
satisfaction of claims against the United States under subsection (a),
and for any actions made pursuant to subsection (f).
SEC. 11313. COMPTROLLER GENERAL STUDY OF WASTEWATER INFRASTRUCTURE NEAR
UNITED STATES-MEXICO BORDER.
The Comptroller General shall conduct a study of the state of
wastewater infrastructure in rural communities within 150 miles of the
United States-Mexico border to determine what the Federal Government
can do to assist border rural communities in bringing wastewater
infrastructure up to date.
SEC. 11314. 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. 11315. POLLINATOR PROTECTION.
(a) Short Title.--This section may be cited as the ``Pollinator
Protection Act of 2007''.
(b) Findings.--Congress finds that--
(1) many of the crops that humans and livestock consume
rely on pollinators for healthy growth;
(2) pollination by honey and native bees adds more than
$18,000,000,000 annually to the value of United States crops;
(3) \1/3\ of the food supply of the United States depends
on bee pollination, which makes the management and protection
of pollinators an issue of paramount importance to the security
of the United States food supply system;
(4) colony collapse disorder is the name that has been
given to the latest die-off of honey bee colonies, exacerbating
the continual decline of pollinators in North America;
(5) honey bee colonies in more than 23 states have been
affected by colony collapse disorder;
(6) if the current rate of decline continues, the United
States will be forced to rely more heavily on imported foods,
which will destabilize the food security of the United States
through adverse affects on the availability, price, and quality
of the many fruits, vegetables, and other products that depend
on animal pollination; and
(7) enhanced funding for research on honey bees, native
bees, parasites, pathogens, toxins, and other environmental
factors affecting bees and pollination of cultivated and wild
plants will result in methods of response to colony collapse
disorder and other factors causing the decline of pollinators
in North America.
(c) Authorizations of Appropriations.--
(1) Agricultural research service.--There is authorized to
be appropriated to the Secretary of Agriculture, acting through
the Agricultural Research Service--
(A) $3,000,000 for each of fiscal years 2008
through 2012, to be used for new personnel, facilities
improvement, and additional research at Department of
Agriculture Bee Research Laboratories;
(B) $2,500,000 for each of fiscal years 2008 and
2009, to be used for research on honey and native bee
physiology, insect pathology, insect chemical ecology,
and honey and native bee toxicology at other Department
of Agriculture facilities in New York, Florida,
California, Utah, and Texas; and
(C) $1,750,000 for each of fiscal years 2008
through 2010, to be used for an area-wide research
program to identify causes and solutions for colony
collapse disorder in affected States.
(2) Cooperative state research, education, and extension
service.--There is authorized to be appropriated to the
Secretary of Agriculture, acting through the Cooperative State
Research, Education, and Extension Service, $10,000,000 for
each of fiscal years 2008 through 2012 to be used to fund
Department of Agriculture extension and research grants to
investigate--
(A) honey bee biology, immunology, and ecology;
(B) honey bee genomics;
(C) honey bee bioinformatics;
(D) native bee crop pollination and habitat
conservation;
(E) native bee taxonomy and ecology;
(F) pollination biology;
(G) sublethal effects of insecticides, herbicides,
and fungicides on honey bees, native pollinators, and
other beneficial insects;
(H) the effects of genetically-modified crops,
including the interaction of genetically-modified crops
with honey bees and other native pollinators; and
(I) honey, bumble, and other native bee parasites
and pathogens and effects on other native pollinators.
(3) Animal and plant health inspection service.--There is
authorized to be appropriated to the Secretary of Agriculture,
acting through the Animal and Plant Health Inspection Service,
$2,250,000 for each of fiscal years 2008 through 2012 to
conduct a nationwide honey bee pest and pathogen surveillance
program.
(d) Annual Reports.--The Secretary of Agriculture, acting through
the Agricultural Research Service and the Cooperative State Research,
Education, and Extension Service, 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
status and progress of bee research projects that are carried out by
the Secretary.
(e) Giving Pollinator Habitat and Protection a Priority in
Conservation Programs.--Section 1244 of the Food Security Act of 1985
(16 U.S.C. 3844) is amended by adding at the end the following new
subsection:
``(c) Native and Managed Pollinators.--In carrying out any
conservation program administered by the Secretary, except the farmland
protection program, the Secretary shall establish a priority and
provide incentives for--
``(1) increasing habitat for native and managed
pollinators, especially native habitat; and
``(2) establishing cropping systems, integrated pest
management regimes, and other practices to protect native and
managed pollinators.''.
SEC. 11316. PROHIBITION ON USE OF LIVE ANIMALS FOR MARKETING MEDICAL
DEVICES; FINES UNDER THE ANIMAL WELFARE ACT.
(a) Prohibition on Use of Animals for Marketing of Medical
Devices.--The Animal Welfare Act (7 U.S.C. 2131 et seq.) is amended by
inserting after section 17 the following new section:
``prohibition on use of live animals for marketing medical devices
``Sec. 18. (a) In General.--No person may use a live animal to--
``(1) demonstrate a medical device or product to a sales
representative for the purpose of marketing such medical device
or product;
``(2) train a sales representative to use a medical device
or product;
``(3) demonstrate a medical device or product in a workshop
or training session for the purpose of marketing a medical
device or product; or
``(4) create a multimedia recording (including a video
recording) for the purpose of marketing a medical device or
product.
``(b) Exception.--Subsection (a) shall not apply to the training of
medical personnel for a purpose other than marketing a medical device
or product.
``(c) Device Defined.--In this section, the term `device' has the
meaning given the term in section 201(h) of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 321(h)).''.
(b) Fines for Violations of the Animal Welfare Act.--Section 19(b)
of the Animal Welfare Act (7 U.S.C. 2149(b)) is amended--
(1) 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''; and
(2) by striking the second sentence and inserting the
following: ``Each violation, each day during which a violation
continues, and, in the case of a violation with respect to
animals, each animal that is the subject of such a violation
shall be a separate offense.''.
(c) Reports on Activities Under the Animal Welfare Act.--The Animal
Welfare Act (7 U.S.C. 2131 et seq.) is further amended by striking
section 25 and inserting the following new section:
``annual report
``Sec. 25. Not later than March 1 of each year, the Secretary
shall submit to Congress a report containing--
``(1) an identification of all research facilities,
exhibitors, and other persons and establishments licensed by
the Secretary under section 3 and section 12;
``(2) an identification of all research facilities,
intermediate handlers, carriers, and exhibitors registered
under section 6;
``(3) the nature and place of all investigations and
inspections conducted by the Secretary under section 16, and
all reports received by the Secretary under section 13;
``(4) recommendations for legislation to improve the
administration of this Act or any provisions of this Act; and
``(5) recommendations and conclusions concerning the
aircraft environment as it relates to the carriage of live
animals in air transportation.''.
SEC. 11317. PROTECTION OF PETS.
(a) Short Title.--This section may be cited as the ``Pet Safety and
Protection Act of 2007''.
(b) Research Facilities.--Section 7 of the Animal Welfare Act (7
U.S.C. 2137) is amended to read as follows:
``SEC. 7. SOURCES OF DOGS AND CATS FOR RESEARCH FACILITIES.
``(a) Definition of Person.--In this section, the term `person'
means any individual, partnership, firm, joint stock company,
corporation, association, trust, estate, pound, shelter, or other legal
entity.
``(b) Use of Dogs and Cats.--No research facility or Federal
research facility may use a dog or cat for research or educational
purposes if the dog or cat was obtained from a person other than a
person described in subsection (d).
``(c) Selling, Donating, or Offering Dogs and Cats.--No person,
other than a person described in subsection (d), may sell, donate, or
offer a dog or cat to any research facility or Federal research
facility.
``(d) Permissible Sources.--A person from whom a research facility
or a Federal research facility may obtain a dog or cat for research or
educational purposes under subsection (b), and a person who may sell,
donate, or offer a dog or cat to a research facility or a Federal
research facility under subsection (c), shall be--
``(1) a dealer licensed under section 3 that has bred and
raised the dog or cat;
``(2) a publicly owned and operated pound or shelter that--
``(A) is registered with the Secretary;
``(B) is in compliance with section 28(a)(1) and
with the requirements for dealers in subsections (b)
and (c) of section 28; and
``(C) obtained the dog or cat from its legal owner,
other than a pound or shelter;
``(3) a person that is donating the dog or cat and that--
``(A) bred and raised the dog or cat; or
``(B) owned the dog or cat for not less than 1 year
immediately preceding the donation;
``(4) a research facility licensed by the Secretary; and
``(5) a Federal research facility licensed by the
Secretary.
``(e) Penalties.--
``(1) In general.--A person that violates this section
shall be fined $1,000 for each violation.
``(2) Additional penalty.--A penalty under this subsection
shall be in addition to any other applicable penalty.
``(f) No Required Sale or Donation.--Nothing in this section
requires a pound or shelter to sell, donate, or offer a dog or cat to a
research facility or Federal research facility.''.
(c) Federal Research Facilities.--Section 8 of the Animal Welfare
Act (7 U.S.C. 2138) is amended--
(1) by striking ``Sec. 8. No department'' and inserting the
following:
``SEC. 8. FEDERAL RESEARCH FACILITIES.
``Except as provided in section 7, no department'';
(2) by striking ``research or experimentation or''; and
(3) by striking ``such purposes'' and inserting ``that
purpose''.
(d) Certification.--Section 28(b)(1) of the Animal Welfare Act (7
U.S.C. 2158(b)(1)) is amended by striking ``individual or entity'' and
inserting ``research facility or Federal research facility''.
(e) Effective Date.--The amendments made by subsections (b), (c),
and (d) take effect on the date that is 90 days after the date of the
enactment of this Act.
TITLE XII--PREVENTION OF TAX TREATY EXPLOITATION TO EVADE UNITED STATES
TAXATION
Sec. 12001. Limitation on treaty benefits for certain deductible
payments.
SEC. 12001. LIMITATION ON TREATY BENEFITS FOR CERTAIN DEDUCTIBLE
PAYMENTS.
(a) In General.--Section 894 of the Internal Revenue Code of 1986
(relating to income affected by treaty) is amended by adding at the end
the following new subsection:
``(d) Limitation on Treaty Benefits for Certain Deductible
Payments.--
``(1) In general.--In the case of any deductible related-
party payment, the amount of any withholding tax imposed under
chapter 3 (and any tax imposed under subpart A or B of this
part) with respect to such payment shall not be less than the
amount which would be imposed if the payment were made directly
to the foreign parent corporation (taking into account any
income tax treaty between the United States and the country in
which the foreign parent corporation is resident).
``(2) Deductible related-party payment.--For purposes of
this subsection, the term `deductible related-party payment'
means any payment made, directly or indirectly, by any person
to any other person if the payment is allowable as a deduction
under this chapter and both persons are members of the same
foreign controlled group of entities.
``(3) Foreign controlled group of entities.--For purposes
of this subsection--
``(A) In general.--The term `foreign controlled
group of entities' means a controlled group of entities
the common parent of which is a foreign corporation.
``(B) Controlled group of entities.--The term
`controlled group of entities' means a controlled group
of corporations as defined in section 1563(a)(1),
except that--
``(i) `more than 50 percent' shall be
substituted for `at least 80 percent' each
place it appears therein, and
``(ii) the determination shall be made
without regard to subsections (a)(4) and (b)(2)
of section 1563.
A partnership or any other entity (other than a
corporation) shall be treated as a member of a
controlled group of entities if such entity is
controlled (within the meaning of section 954(d)(3)) by
members of such group (including any entity treated as
a member of such group by reason of this sentence).
``(4) Foreign parent corporation.--For purposes of this
subsection, the term `foreign parent corporation' means, with
respect to any deductible related-party payment, the common
parent of the foreign controlled group of entities referred to
in paragraph (3)(A).
``(5) Regulations.--The Secretary may prescribe such
regulations or other guidance as are necessary or appropriate
to carry out the purposes of this subsection, including
regulations or other guidance which provide for--
``(A) the treatment of two or more persons as
members of a foreign controlled group of entities if
such persons would be the common parent of such group
if treated as one corporation, and
``(B) the treatment of any member of a foreign
controlled group of entities as the common parent of
such group if such treatment is appropriate taking into
account the economic relationships among such
entities.''.
(b) Effective Date.--The amendment made by this section shall apply
to payments made after the date of the enactment of this Act.
TITLE XIII--ADDITIONAL OFFSETS
Subtitle A--Conservation of Resources Fees and Repeal of Royalty Relief
Sec. 13001. Conservation of resources fees.
Sec. 13002. Repeal of certain taxpayer subsidized royalty relief for
the oil and gas industry.
Sec. 13003. Time for payment of corporate estimated taxes.
Subtitle B--Allocation of Offsets
Sec. 13011. Report on funds; rate of federal crop insurance.
Subtitle A--Conservation of Resources Fees and Repeal of Royalty Relief
SEC. 13001. CONSERVATION OF RESOURCES FEES.
(a) Conservation of Resources Fees.--
(1) In general.--Not later than 60 days after the date of
enactment of this Act, the Secretary of the Interior by
regulation shall establish a conservation of resources fee for
producing Federal oil and gas leases in the Gulf of Mexico.
(2) Fee terms.--The fee under paragraph (1)--
(A) subject to subparagraph (C), shall apply to
covered leases that are producing leases;
(B) shall be set at $9 per barrel for oil and $1.25
per million Btu for gas, respectively, in 2005 dollars;
and
(C) shall apply only to production of oil or gas
occurring--
(i) in any calendar year in which the
arithmetic average of the daily closing prices
for light sweet crude oil on the New York
Mercantile Exchange (NYMEX) exceeds $34.73 per
barrel for oil and $4.34 per million Btu for
gas in 2005 dollars; and
(ii) on or after October 1, 2006.
(3) Treatment of receipts.--Amounts received by the United
States as fees under this subsection shall be treated as
offsetting receipts.
(b) Covered Lease Defined.--In this section the term ``covered
lease'' means a lease for oil or gas production in the Gulf of Mexico
that is--
(1) in existence on the date of enactment of this Act;
(2) issued by the Department of the Interior under section
304 of the Outer Continental Shelf Deep Water Royalty Relief
Act (43 U.S.C. 1337 note; Public Law 104-58); and
(3) not subject to limitations on royalty relief based on
market price that are equal to or less than the price
thresholds described in clauses (v) through (vii) of section
8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(3)(C)).
SEC. 13002. REPEAL OF CERTAIN TAXPAYER SUBSIDIZED ROYALTY RELIEF FOR
THE OIL AND GAS INDUSTRY.
(a) Repeal of Provisions of Energy Policy Act of 2005.--The
following provisions of the Energy Policy Act of 2005 (Public Law 109-
58) are repealed:
(1) Section 344 (42 U.S.C. 15904; relating to incentives
for natural gas production from deep wells in shallow waters of
the Gulf of Mexico).
(2) Section 345 (42 U.S.C. 15905; relating to royalty
relief for deep water production in the Gulf of Mexico).
(3) Subsection (i) of section 365 (42 U.S.C. 15924;
relating to the prohibition on drilling-related permit
application cost recovery fees).
(b) Provisions Relating to Planning Areas Offshore Alaska.--Section
8(a)(3)(B) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(3)(B)) is amended by striking ``and in the Planning Areas
offshore Alaska'' after ``West longitude''.
(c) Provisions Relating to Naval Petroleum Reserve in Alaska.--
Section 107 of the Naval Petroleum Reserves Production Act of 1976 (as
transferred, redesignated, moved, and amended by section 347 of the
Energy Policy Act of 2005 (119 Stat. 704)) is amended--
(1) in subsection (i) by striking paragraphs (2) through
(6); and
(2) by striking subsection (k).
SEC. 13003. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
Subparagraph (B) of section 401(1) of the Tax Increase Prevention
and Reconciliation Act of 2005 is amended by striking ``114.50
percent'' and inserting ``115.75 percent''.
Subtitle B--Allocation of Offsets
SEC. 13011. REPORT ON FUNDS; RATE OF FEDERAL CROP INSURANCE.
(a) Report.--Not later than the September 15 preceding each fiscal
year, the Secretary of the Interior shall report to the Secretary of
Agriculture the total amount expected to be received in the fiscal year
as a result of the changes in subtitle A.
(b) Rate.--Notwithstanding section 508(k)(4)(A)(ii) of the Federal
Crop Insurance Act (7 U.S.C. 1508(k)(4)(A)(ii)), the reimbursement rate
established for each of the reinsurance years 2012 through 2017 shall
be the lesser of--
(1) the rate established in such section; and
(2) the product of--
(A) the rate established in such section; and
(B) the factor calculated in subsection (c).
(c) Calculation.--In carrying out subsection (b), the Secretary of
the Interior shall calculate the appropriate factor by dividing the
amount calculated under subsection (a) for the fiscal year by the
amount calculated under subsection (a) for fiscal year 2012.
Passed the House of Representatives July 27, 2007.
Attest:
LORRAINE C. MILLER,
Clerk.
By Jorge E. Sorensen,
Deputy Clerk.
Calendar No. 339
110th CONGRESS
1st Session
H. R. 2419
_______________________________________________________________________
AN ACT
To provide for the continuation of agricultural programs through fiscal
year 2012, and for other purposes.
_______________________________________________________________________
September 5, 2007
Read the second time and placed on the calendar