[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6124 Placed on Calendar Senate (PCS)]






                                                       Calendar No. 753
110th CONGRESS
  2d Session
                                H. R. 6124


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 22, 2008

            Received; read twice and placed on the calendar

_______________________________________________________________________

                                 AN ACT


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

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Food, 
Conservation, and Energy Act of 2008''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
Sec. 3. Explanatory Statement.
Sec. 4. Repeal of duplicative enactment.
                      TITLE I--COMMODITY PROGRAMS

Sec. 1001. Definitions.
       Subtitle A--Direct Payments and Counter-Cyclical Payments

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

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

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

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

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

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

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

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

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

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

Sec. 2301. Conservation stewardship program.
         Subtitle E--Farmland Protection and Grassland Reserve

Sec. 2401. Farmland protection program.
Sec. 2402. Farm viability program.
Sec. 2403. Grassland reserve program.
          Subtitle F--Environmental Quality Incentives Program

Sec. 2501. Purposes of environmental quality incentives program.
Sec. 2502. Definitions.
Sec. 2503. Establishment and administration of environmental quality 
                            incentives program.
Sec. 2504. Evaluation of applications.
Sec. 2505. Duties of producers under environmental quality incentives 
                            program.
Sec. 2506. Environmental quality incentives program plan.
Sec. 2507. Duties of the Secretary.
Sec. 2508. Limitation on environmental quality incentives program 
                            payments.
Sec. 2509. Conservation innovation grants and payments.
Sec. 2510. Agricultural water enhancement program.
  Subtitle G--Other Conservation Programs of the Food Security Act of 
                                  1985

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

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

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

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

                     Subtitle A--Food for Peace Act

Sec. 3001. Short title.
Sec. 3002. United States policy.
Sec. 3003. Food aid to developing countries.
Sec. 3004. Trade and development assistance.
Sec. 3005. Agreements regarding eligible countries and private 
                            entities.
Sec. 3006. Use of local currency payments.
Sec. 3007. General authority.
Sec. 3008. Provision of agricultural commodities.
Sec. 3009. Generation and use of currencies by private voluntary 
                            organizations and cooperatives.
Sec. 3010. Levels of assistance.
Sec. 3011. Food Aid Consultative Group.
Sec. 3012. Administration.
Sec. 3013. Assistance for stockpiling and rapid transportation, 
                            delivery, and distribution of shelf-stable 
                            prepackaged foods.
Sec. 3014. General authorities and requirements.
Sec. 3015. Definitions.
Sec. 3016. Use of Commodity Credit Corporation.
Sec. 3017. Administrative provisions.
Sec. 3018. Consolidation and modification of annual reports regarding 
                            agricultural trade issues.
Sec. 3019. Expiration of assistance.
Sec. 3020. Authorization of appropriations.
Sec. 3021. Minimum level of nonemergency food assistance.
Sec. 3022. Coordination of foreign assistance programs.
Sec. 3023. Micronutrient fortification programs.
Sec. 3024. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.
    Subtitle B--Agricultural Trade Act of 1978 and Related Statutes

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

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

Sec. 3301. Softwood lumber.
                          TITLE IV--NUTRITION

                     Subtitle A--Food Stamp Program

             PART I--Renaming of Food Stamp Act and Program

Sec. 4001. Renaming of Food Stamp Act and program.
Sec. 4002. Conforming amendments.
                     PART II--Benefit Improvements

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

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

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

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

               PART I--Emergency Food Assistance Program

Sec. 4201. Emergency food assistance.
Sec. 4202. Emergency food program infrastructure grants.
       PART II--Food Distribution Program on Indian Reservations

Sec. 4211. Assessing the nutritional value of the FDPIR food package.
             PART III--Commodity Supplemental Food Program

Sec. 4221. Commodity supplemental food program.
           PART IV--Senior Farmers' Market Nutrition Program

Sec. 4231. Seniors farmers' market nutrition program.
            Subtitle C--Child Nutrition and Related Programs

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

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

                    Subtitle A--Farm Ownership Loans

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

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

Sec. 5201. Eligibility of equine farmers and ranchers for emergency 
                            loans.
                 Subtitle D--Administrative Provisions

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

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

Sec. 5501. Loans to purchasers of highly fractioned land.
                      TITLE VI--RURAL DEVELOPMENT

        Subtitle A--Consolidated Farm and Rural Development Act

Sec. 6001. Water, waste disposal, and wastewater facility grants.
Sec. 6002. SEARCH grants.
Sec. 6003. Rural business opportunity grants.
Sec. 6004. Child day care facility grants, loans, and loan guarantees.
Sec. 6005. Community facility grants to advance broadband.
Sec. 6006. Rural water and wastewater circuit rider program.
Sec. 6007. Tribal College and University essential community 
                            facilities.
Sec. 6008. Emergency and imminent community water assistance grant 
                            program.
Sec. 6009. Water systems for rural and native villages in Alaska.
Sec. 6010. Grants to nonprofit organizations to finance the 
                            construction, refurbishing, and servicing 
                            of individually-owned household water well 
                            systems in rural areas for individuals with 
                            low or moderate incomes.
Sec. 6011. Interest rates for water and waste disposal facilities 
                            loans.
Sec. 6012. Cooperative equity security guarantee.
Sec. 6013. Rural cooperative development grants.
Sec. 6014. Grants to broadcasting systems.
Sec. 6015. Locally or regionally produced agricultural food products.
Sec. 6016. Appropriate technology transfer for rural areas.
Sec. 6017. Rural economic area partnership zones.
Sec. 6018. Definitions.
Sec. 6019. National rural development partnership.
Sec. 6020. Historic barn preservation.
Sec. 6021. Grants for NOAA weather radio transmitters.
Sec. 6022. Rural microentrepreneur assistance program.
Sec. 6023. Grants for expansion of employment opportunities for 
                            individuals with disabilities in rural 
                            areas.
Sec. 6024. Health care services.
Sec. 6025. Delta Regional Authority.
Sec. 6026. Northern Great Plains Regional Authority.
Sec. 6027. Rural Business Investment Program.
Sec. 6028. Rural Collaborative Investment Program.
Sec. 6029. Funding of pending rural development loan and grant 
                            applications.
             Subtitle B--Rural Electrification Act of 1936

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

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

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

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

Sec. 7101. Definitions.
Sec. 7102. National Agricultural Research, Extension, Education, and 
                            Economics Advisory Board.
Sec. 7103. Specialty crop committee report.
Sec. 7104. Renewable energy committee.
Sec. 7105. Veterinary medicine loan repayment.
Sec. 7106. Eligibility of University of the District of Columbia for 
                            grants and fellowships for food and 
                            agricultural sciences education.
Sec. 7107. Grants to 1890 schools to expand extension capacity.
Sec. 7108. Expansion of food and agricultural sciences awards.
Sec. 7109. Grants and fellowships for food and agricultural sciences 
                            education.
Sec. 7110. Grants for research on production and marketing of alcohols 
                            and industrial hydrocarbons from 
                            agricultural commodities and forest 
                            products.
Sec. 7111. Policy research centers.
Sec. 7112. Education grants to Alaska Native-serving institutions and 
                            Native Hawaiian-serving institutions.
Sec. 7113. Emphasis of human nutrition initiative.
Sec. 7114. Human nutrition intervention and health promotion research 
                            program.
Sec. 7115. Pilot research program to combine medical and agricultural 
                            research.
Sec. 7116. Nutrition education program.
Sec. 7117. Continuing animal health and disease research programs.
Sec. 7118. Cooperation among eligible institutions.
Sec. 7119. Appropriations for research on national or regional 
                            problems.
Sec. 7120. Animal health and disease research program.
Sec. 7121. Authorization level for extension at 1890 land-grant 
                            colleges.
Sec. 7122. Authorization level for agricultural research at 1890 land-
                            grant colleges.
Sec. 7123. Grants to upgrade agricultural and food sciences facilities 
                            at 1890 land-grant colleges, including 
                            Tuskegee University.
Sec. 7124. Grants to upgrade agriculture and food sciences facilities 
                            at the District of Columbia land-grant 
                            university.
Sec. 7125. Grants to upgrade agriculture and food sciences facilities 
                            and equipment at insular area land-grant 
                            institutions.
Sec. 7126. National research and training virtual centers.
Sec. 7127. Matching funds requirement for research and extension 
                            activities of 1890 institutions.
Sec. 7128. Hispanic-serving institutions.
Sec. 7129. Hispanic-serving agricultural colleges and universities.
Sec. 7130. International agricultural research, extension, and 
                            education.
Sec. 7131. Competitive grants for international agricultural science 
                            and education programs.
Sec. 7132. Administration.
Sec. 7133. Research equipment grants.
Sec. 7134. University research.
Sec. 7135. Extension Service.
Sec. 7136. Supplemental and alternative crops.
Sec. 7137. New Era Rural Technology Program.
Sec. 7138. Capacity building grants for NLGCA Institutions.
Sec. 7139. Borlaug international agricultural science and technology 
                            fellowship program.
Sec. 7140. Aquaculture assistance programs.
Sec. 7141. Rangeland research grants.
Sec. 7142. Special authorization for biosecurity planning and response.
Sec. 7143. Resident instruction and distance education grants program 
                            for insular area institutions of higher 
                            education.
   Subtitle B--Food, Agriculture, Conservation, and Trade Act of 1990

Sec. 7201. National genetics resources program.
Sec. 7202. National Agricultural Weather Information System.
Sec. 7203. Partnerships.
Sec. 7204. High-priority research and extension areas.
Sec. 7205. Nutrient management research and extension initiative.
Sec. 7206. Organic Agriculture Research and Extension Initiative.
Sec. 7207. Agricultural bioenergy feedstock and energy efficiency 
                            research and extension initiative.
Sec. 7208. Farm business management and benchmarking.
Sec. 7209. Agricultural telecommunications program.
Sec. 7210. Assistive technology program for farmers with disabilities.
Sec. 7211. Research on honey bee diseases.
Sec. 7212. National Rural Information Center Clearinghouse.
Subtitle C--Agricultural Research, Extension, and Education Reform Act 
                                of 1998

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

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

                       PART I--General Provisions

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

Sec. 7511. Research, education, and economics.
               PART III--New Grant and Research Programs

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

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

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

Sec. 8101. Purposes.
Sec. 8102. Definitions.
Sec. 8103. Reburial of human remains and cultural items.
Sec. 8104. Temporary closure for traditional and cultural purposes.
Sec. 8105. Forest products for traditional and cultural purposes.
Sec. 8106. Prohibition on disclosure.
Sec. 8107. Severability and savings provisions.
         Subtitle C--Amendments to Other Forestry-Related Laws

Sec. 8201. Rural revitalization technologies.
Sec. 8202. Office of International Forestry.
Sec. 8203. Emergency forest restoration program.
Sec. 8204. Prevention of illegal logging practices.
Sec. 8205. Healthy forests reserve program.
    Subtitle D--Boundary Adjustments and Land Conveyance Provisions

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

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

Sec. 9001. Energy.
Sec. 9002. Biofuels infrastructure study.
Sec. 9003. Renewable fertilizer study.
             TITLE X--HORTICULTURE AND ORGANIC AGRICULTURE

Sec. 10001. Definitions.
           Subtitle A--Horticulture Marketing and Information

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

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

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

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

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

           Subtitle A--Crop Insurance and Disaster Assistance

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

Sec. 12051. Short title.
Sec. 12052. Definitions.
                 PART I--Disaster Planning and Response

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

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

Sec. 12091. Reports on disaster assistance.
                     TITLE XIII--COMMODITY FUTURES

Sec. 13001. Short title.
                     Subtitle A--General Provisions

Sec. 13101. Commission authority over agreements, contracts or 
                            transactions in foreign currency.
Sec. 13102. Anti-fraud authority over principal-to-principal 
                            transactions.
Sec. 13103. Criminal and civil penalties.
Sec. 13104. Authorization of appropriations.
Sec. 13105. Technical and conforming amendments.
Sec. 13106. Portfolio margining and security index issues.
Subtitle B--Significant Price Discovery Contracts on Exempt Commercial 
                                Markets

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

   Subtitle A--Socially Disadvantaged Producers and Limited Resource 
                               Producers

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

Sec. 14101. Short title.
Sec. 14102. Definitions.
                    Chapter 1--Agricultural Security

Sec. 14111. Office of Homeland Security.
Sec. 14112. Agricultural biosecurity communication center.
Sec. 14113. Assistance to build local capacity in agricultural 
                            biosecurity planning, preparedness, and 
                            response.
                      Chapter 2--Other Provisions

Sec. 14121. Research and development of agricultural countermeasures.
Sec. 14122. Agricultural biosecurity grant program.
               Subtitle C--Other Miscellaneous Provisions

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

Sec. 15001. Short title; etc.
  Subtitle A--Supplemental Agricultural Disaster Assistance From the 
                Agricultural Disaster Relief Trust Fund

Sec. 15101. Supplemental agricultural disaster assistance.
        Subtitle B--Revenue Provisions for Agriculture Programs

Sec. 15201. Customs User Fees.
Sec. 15202. Time for payment of corporate estimated taxes.
                       Subtitle C--Tax Provisions

                          PART I--Conservation

          subpart a--land and species preservation provisions

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

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

                     subpart a--cellulosic biofuel

Sec. 15321. Credit for production of cellulosic biofuel.
Sec. 15322. Comprehensive study of biofuels.
                     subpart b--revenue provisions

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

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

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

Sec. 15361. Protection of social security.
                      Subtitle D--Trade Provisions

              PART I--Extension of Certain Trade Benefits

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

Sec. 15421. Unused merchandise drawback.
Sec. 15422. Requirements relating to determination of transaction value 
                            of imported merchandise.

SEC. 2. DEFINITION OF SECRETARY.

    In this Act, the term ``Secretary'' means the Secretary of 
Agriculture.

SEC. 3. EXPLANATORY STATEMENT.

    The Joint Explanatory Statement submitted by the Committee of 
Conference for the conference report to accompany H.R. 2419 of the 
110th Congress (House Report 110-627) shall be deemed to be part of the 
legislative history of this Act and shall have the same effect with 
respect to the implementation of this Act as it would have had with 
respect to the implementation of H.R. 2419.

SEC. 4. REPEAL OF DUPLICATIVE ENACTMENT.

    (a) In General.--The Act entitled ``An Act to provide for the 
continuation of agricultural programs through fiscal year 2012, and for 
other purposes'' (H.R. 2419 of the 110th Congress), and the amendments 
made by that Act, are repealed, effective on the date of enactment of 
that Act.
    (b) Effective Date.--Except as otherwise provided in this Act, this 
Act and the amendments made by this Act shall take effect on the 
earlier of--
            (1) the date of enactment of this Act; or
            (2) the date of the enactment of the Act entitled ``An Act 
        to provide for the continuation of agricultural programs 
        through fiscal year 2012, and for other purposes'' (H.R. 2419 
        of the 110th Congress).

                      TITLE I--COMMODITY PROGRAMS

SEC. 1001. DEFINITIONS.

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

       Subtitle A--Direct Payments and Counter-Cyclical Payments

SEC. 1101. BASE ACRES.

    (a) Adjustment of Base Acres.--
            (1) In general.--The Secretary shall provide for an 
        adjustment, as appropriate, in the base acres for covered 
        commodities for a farm whenever any of the following 
        circumstances occurs:
                    (A) A conservation reserve contract entered into 
                under section 1231 of the Food Security Act of 1985 (16 
                U.S.C. 3831) with respect to the farm expires or is 
                voluntarily terminated, or was terminated or expired 
                during the period beginning on October 1, 2007, and 
                ending on the date of enactment of this Act.
                    (B) Cropland is released from coverage under a 
                conservation reserve contract by the Secretary, or was 
                released during the period beginning on October 1, 
                2007, and ending on the date of enactment of this Act.
                    (C) The producer has eligible pulse crop acreage, 
                which shall be determined in the same manner as 
                eligible oilseed acreage under section 1101(a)(2) of 
                the Farm Security and Rural Investment Act of 2002 (7 
                U.S.C. 7911(a)(2)).
                    (D) The producer has eligible oilseed acreage as 
                the result of the Secretary designating additional 
                oilseeds, which shall be determined in the same manner 
                as eligible oilseed acreage under section 1101(a)(2) of 
                the Farm Security and Rural Investment Act of 2002 (7 
                U.S.C. 7911(a)(2)).
            (2) Special conservation reserve acreage payment rules.--
        For the crop year in which a base acres adjustment under 
        subparagraph (A) or (B) of paragraph (1) is first made, the 
        owner of the farm shall elect to receive either direct payments 
        and counter-cyclical payments with respect to the acreage added 
        to the farm under this subsection or a prorated payment under 
        the conservation reserve contract, but not both.
    (b) Prevention of Excess Base Acres.--
            (1) Required reduction.--If the sum of the base acres for a 
        farm, together with the acreage described in paragraph (2) 
        exceeds the actual cropland acreage of the farm, the Secretary 
        shall reduce the base acres for 1 or more covered commodities 
        for the farm or the base acres for peanuts for the farm so that 
        the sum of the base acres and acreage described in paragraph 
        (2) does not exceed the actual cropland acreage of the farm.
            (2) Other acreage.--For purposes of paragraph (1), the 
        Secretary shall include the following:
                    (A) Any base acres for peanuts for the farm.
                    (B) Any acreage on the farm enrolled in the 
                conservation reserve program or wetlands reserve 
                program under chapter 1 of subtitle D of title XII of 
                the Food Security Act of 1985 (16 U.S.C. 3830 et seq.).
                    (C) Any other acreage on the farm enrolled in a 
                Federal conservation program for which payments are 
                made in exchange for not producing an agricultural 
                commodity on the acreage.
                    (D) Any eligible pulse crop acreage, which shall be 
                determined in the same manner as eligible oilseed 
                acreage under section 1101(a)(2) of the Farm Security 
                and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
                    (E) If the Secretary designates additional 
                oilseeds, any eligible oilseed acreage, which shall be 
                determined in the same manner as eligible oilseed 
                acreage under section 1101(a)(2) of the Farm Security 
                and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
            (3) Selection of acres.--The Secretary shall give the owner 
        of the farm the opportunity to select the base acres for a 
        covered commodity or the base acres for peanuts for the farm 
        against which the reduction required by paragraph (1) will be 
        made.
            (4) Exception for double-cropped acreage.--In applying 
        paragraph (1), the Secretary shall make an exception in the 
        case of double cropping, as determined by the Secretary.
            (5) Coordinated application of requirements.--The Secretary 
        shall take into account section 1302(b) when applying the 
        requirements of this subsection.
    (c) Reduction in Base Acres.--
            (1) Reduction at option of owner.--
                    (A) In general.--The owner of a farm may reduce, at 
                any time, the base acres for any covered commodity for 
                the farm.
                    (B) Effect of reduction.--A reduction under 
                subparagraph (A) shall be permanent and made in a 
                manner prescribed by the Secretary.
            (2) Required action by secretary.--
                    (A) In general.--The Secretary shall 
                proportionately reduce base acres on a farm for covered 
                commodities for land that has been subdivided and 
                developed for multiple residential units or other 
                nonfarming uses if the size of the tracts and the 
                density of the subdivision is such that the land is 
                unlikely to return to the previous agricultural use, 
                unless the producers on the farm demonstrate that the 
                land--
                            (i) remains devoted to commercial 
                        agricultural production; or
                            (ii) is likely to be returned to the 
                        previous agricultural use.
                    (B) Requirement.--The Secretary shall establish 
                procedures to identify land described in subparagraph 
                (A).
            (3) Review and report.--Each year, to ensure, to the 
        maximum extent practicable, that payments are received only by 
        producers, the Secretary shall submit to Congress a report that 
        describes the results of the actions taken under paragraph (2).
    (d) Treatment of Farms With Limited Base Acres.--
            (1) Prohibition on payments.--Except as provided in 
        paragraph (2) and notwithstanding any other provision of this 
        title, a producer on a farm may not receive direct payments, 
        counter-cyclical payments, or average crop revenue election 
        payments if the sum of the base acres of the farm is 10 acres 
        or less, as determined by the Secretary.
            (2) Exceptions.--Paragraph (1) shall not apply to a farm 
        owned by--
                    (A) a socially disadvantaged farmer or rancher (as 
                defined in section 355(e) of the Consolidated Farm and 
                Rural Development Act (7 U.S.C. 2003(e)); or
                    (B) a limited resource farmer or rancher, as 
                defined by the Secretary.
            (3) Data collection and publication.--The Secretary shall--
                    (A) collect and publish segregated data and survey 
                information about the farm profiles, utilization of 
                land, and crop production; and
                    (B) perform an evaluation on the supply and price 
                of fruits and vegetables based on the effects of 
                suspension of base acres under this section.

SEC. 1102. PAYMENT YIELDS.

    (a) Establishment and Purpose.--For the purpose of making direct 
payments and counter-cyclical payments under this subtitle, the 
Secretary shall provide for the establishment of a yield for each farm 
for any designated oilseed or eligible pulse crop for which a payment 
yield was not established under section 1102 of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 7912) in accordance with this 
section.
    (b) Payment Yields for Designated Oilseeds and Eligible Pulse 
Crops.--
            (1) Determination of average yield.--In the case of 
        designated oilseeds and eligible pulse crops, the Secretary 
        shall determine the average yield per planted acre for the 
        designated oilseed or pulse crop on a farm for the 1998 through 
        2001 crop years, excluding any crop year in which the acreage 
        planted to the designated oilseed or pulse crop was zero.
            (2) Adjustment for payment yield.--
                    (A) In general.--The payment yield for a farm for a 
                designated oilseed or eligible pulse crop shall be 
                equal to the product of the following:
                            (i) The average yield for the designated 
                        oilseed or pulse crop determined under 
                        paragraph (1).
                            (ii) The ratio resulting from dividing the 
                        national average yield for the designated 
                        oilseed or pulse crop for the 1981 through 1985 
                        crops by the national average yield for the 
                        designated oilseed or pulse crop for the 1998 
                        through 2001 crops.
                    (B) No national average yield information 
                available.--To the extent that national average yield 
                information for a designated oilseed or pulse crop is 
                not available, the Secretary shall use such information 
                as the Secretary determines to be fair and equitable to 
                establish a national average yield under this section.
            (3) Use of partial county average yield.--If the yield per 
        planted acre for a crop of a designated oilseed or pulse crop 
        for a farm for any of the 1998 through 2001 crop years was less 
        than 75 percent of the county yield for that designated oilseed 
        or pulse crop, the Secretary shall assign a yield for that crop 
        year equal to 75 percent of the county yield for the purpose of 
        determining the average under paragraph (1).
            (4) No historic yield data available.--In the case of 
        establishing yields for designated oilseeds and eligible pulse 
        crops, if historic yield data is not available, the Secretary 
        shall use the ratio for dry peas calculated under paragraph 
        (2)(A)(ii) in determining the yields for designated oilseeds 
        and eligible pulse crops, as determined to be fair and 
        equitable by the Secretary.

SEC. 1103. AVAILABILITY OF DIRECT PAYMENTS.

    (a) Payment Required.--For each of the 2008 through 2012 crop years 
of each covered commodity (other than pulse crops), the Secretary shall 
make direct payments to producers on farms for which base acres and 
payment yields are established.
    (b) Payment Rate.--Except as provided in section 1105, the payment 
rates used to make direct payments with respect to covered commodities 
for a crop year shall be as follows:
            (1) Wheat, $0.52 per bushel.
            (2) Corn, $0.28 per bushel.
            (3) Grain sorghum, $0.35 per bushel.
            (4) Barley, $0.24 per bushel.
            (5) Oats, $0.024 per bushel.
            (6) Upland cotton, $0.0667 per pound.
            (7) Long grain rice, $2.35 per hundredweight.
            (8) Medium grain rice, $2.35 per hundredweight.
            (9) Soybeans, $0.44 per bushel.
            (10) Other oilseeds, $0.80 per hundredweight.
    (c) Payment Amount.--The amount of the direct payment to be paid to 
the producers on a farm for a covered commodity for a crop year shall 
be equal to the product of the following:
            (1) The payment rate specified in subsection (b).
            (2) The payment acres of the covered commodity on the farm.
            (3) The payment yield for the covered commodity for the 
        farm.
    (d) Time for Payment.--
            (1) In general.--Except as provided in paragraph (2), in 
        the case of each of the 2008 through 2012 crop years, the 
        Secretary may not make direct payments before October 1 of the 
        calendar year in which the crop of the covered commodity is 
        harvested.
            (2) Advance payments.--
                    (A) Option.--
                            (i) In general.--At the option of the 
                        producers on a farm, the Secretary shall pay in 
                        advance up to 22 percent of the direct payment 
                        for a covered commodity for any of the 2008 
                        through 2011 crop years to the producers on a 
                        farm.
                            (ii) 2008 crop year.--If the producers on a 
                        farm elect to receive advance direct payments 
                        under clause (i) for a covered commodity for 
                        the 2008 crop year, as soon as practicable 
                        after the election, the Secretary shall make 
                        the advance direct payment to the producers on 
                        the farm.
                    (B) Month.--
                            (i) Selection.--Subject to clauses (ii) and 
                        (iii), the producers on a farm shall select the 
                        month during which the advance payment for a 
                        crop year will be made.
                            (ii) Options.--The month selected may be 
                        any month during the period--
                                    (I) beginning on December 1 of the 
                                calendar year before the calendar year 
                                in which the crop of the covered 
                                commodity is harvested; and
                                    (II) ending during the month within 
                                which the direct payment would 
                                otherwise be made.
                            (iii) Change.--The producers on a farm may 
                        change the selected month for a subsequent 
                        advance payment by providing advance notice to 
                        the Secretary.
            (3) Repayment of advance payments.--If a producer on a farm 
        that receives an advance direct payment for a crop year ceases 
        to be a producer on that farm, or the extent to which the 
        producer shares in the risk of producing a crop changes, before 
        the date the remainder of the direct payment is made, the 
        producer shall be responsible for repaying the Secretary the 
        applicable amount of the advance payment, as determined by the 
        Secretary.

SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.

    (a) Payment Required.--Except as provided in section 1105, for each 
of the 2008 through 2012 crop years for each covered commodity, the 
Secretary shall make counter-cyclical payments to producers on farms 
for which payment yields and base acres are established with respect to 
the covered commodity if the Secretary determines that the effective 
price for the covered commodity is less than the target price for the 
covered commodity.
    (b) Effective Price.--
            (1) Covered commodities other than rice.--Except as 
        provided in paragraph (2), for purposes of subsection (a), the 
        effective price for a covered commodity is equal to the sum of 
        the following:
                    (A) The higher of the following:
                            (i) The national average market price 
                        received by producers during the 12-month 
                        marketing year for the covered commodity, as 
                        determined by the Secretary.
                            (ii) The national average loan rate for a 
                        marketing assistance loan for the covered 
                        commodity in effect for the applicable period 
                        under subtitle B.
                    (B) The payment rate in effect for the covered 
                commodity under section 1103 for the purpose of making 
                direct payments with respect to the covered commodity.
            (2) Rice.--In the case of long grain rice and medium grain 
        rice, for purposes of subsection (a), the effective price for 
        each type or class of rice is equal to the sum of the 
        following:
                    (A) The higher of the following:
                            (i) The national average market price 
                        received by producers during the 12-month 
                        marketing year for the type or class of rice, 
                        as determined by the Secretary.
                            (ii) The national average loan rate for a 
                        marketing assistance loan for the type or class 
                        of rice in effect for the applicable period 
                        under subtitle B.
                    (B) The payment rate in effect for the type or 
                class of rice under section 1103 for the purpose of 
                making direct payments with respect to the type or 
                class of rice.
    (c) Target Price.--
            (1) 2008 crop year.--For purposes of the 2008 crop year, 
        the target prices for covered commodities shall be as follows:
                    (A) Wheat, $3.92 per bushel.
                    (B) Corn, $2.63 per bushel.
                    (C) Grain sorghum, $2.57 per bushel.
                    (D) Barley, $2.24 per bushel.
                    (E) Oats, $1.44 per bushel.
                    (F) Upland cotton, $0.7125 per pound.
                    (G) Long grain rice, $10.50 per hundredweight.
                    (H) Medium grain rice, $10.50 per hundredweight.
                    (I) Soybeans, $5.80 per bushel.
                    (J) Other oilseeds, $10.10 per hundredweight.
            (2) 2009 crop year.--For purposes of the 2009 crop year, 
        the target prices for covered commodities shall be as follows:
                    (A) Wheat, $3.92 per bushel.
                    (B) Corn, $2.63 per bushel.
                    (C) Grain sorghum, $2.57 per bushel.
                    (D) Barley, $2.24 per bushel.
                    (E) Oats, $1.44 per bushel.
                    (F) Upland cotton, $0.7125 per pound.
                    (G) Long grain rice, $10.50 per hundredweight.
                    (H) Medium grain rice, $10.50 per hundredweight.
                    (I) Soybeans, $5.80 per bushel.
                    (J) Other oilseeds, $10.10 per hundredweight.
                    (K) Dry peas, $8.32 per hundredweight.
                    (L) Lentils, $12.81 per hundredweight.
                    (M) Small chickpeas, $10.36 per hundredweight.
                    (N) Large chickpeas, $12.81 per hundredweight.
            (3) Subsequent crop years.--For purposes of each of the 
        2010 through 2012 crop years, the target prices for covered 
        commodities shall be as follows:
                    (A) Wheat, $4.17 per bushel.
                    (B) Corn, $2.63 per bushel.
                    (C) Grain sorghum, $2.63 per bushel.
                    (D) Barley, $2.63 per bushel.
                    (E) Oats, $1.79 per bushel.
                    (F) Upland cotton, $0.7125 per pound.
                    (G) Long grain rice, $10.50 per hundredweight.
                    (H) Medium grain rice, $10.50 per hundredweight.
                    (I) Soybeans, $6.00 per bushel.
                    (J) Other oilseeds, $12.68 per hundredweight.
                    (K) Dry peas, $8.32 per hundredweight.
                    (L) Lentils, $12.81 per hundredweight.
                    (M) Small chickpeas, $10.36 per hundredweight.
                    (N) Large chickpeas, $12.81 per hundredweight.
    (d) Payment Rate.--The payment rate used to make counter-cyclical 
payments with respect to a covered commodity for a crop year shall be 
equal to the difference between--
            (1) the target price for the covered commodity; and
            (2) the effective price determined under subsection (b) for 
        the covered commodity.
    (e) Payment Amount.--If counter-cyclical payments are required to 
be paid under this section for any of the 2008 through 2012 crop years 
of a covered commodity, the amount of the counter-cyclical payment to 
be paid to the producers on a farm for that crop year shall be equal to 
the product of the following:
            (1) The payment rate specified in subsection (d).
            (2) The payment acres of the covered commodity on the farm.
            (3) The payment yield for the covered commodity for the 
        farm.
    (f) Time for Payments.--
            (1) General rule.--Except as provided in paragraph (2), if 
        the Secretary determines under subsection (a) that counter-
        cyclical payments are required to be made under this section 
        for the crop of a covered commodity, beginning October 1, or as 
        soon as practicable thereafter, after the end of the marketing 
        year for the covered commodity, the Secretary shall make the 
        counter-cyclical payments for the crop.
            (2) Availability of partial payments.--
                    (A) In general.--If, before the end of the 12-month 
                marketing year for a covered commodity, the Secretary 
                estimates that counter-cyclical payments will be 
                required for the crop of the covered commodity, the 
                Secretary shall give producers on a farm the option to 
                receive partial payments of the counter-cyclical 
                payment projected to be made for that crop of the 
                covered commodity.
                    (B) Election.--
                            (i) In general.--The Secretary shall allow 
                        producers on a farm to make an election to 
                        receive partial payments for a covered 
                        commodity under subparagraph (A) at any time 
                        but not later than 60 days prior to the end of 
                        the marketing year for that covered commodity.
                            (ii) Date of issuance.--The Secretary shall 
                        issue the partial payment after the date of an 
                        announcement by the Secretary but not later 
                        than 30 days prior to the end of the marketing 
                        year.
            (3) Time for partial payments.--When the Secretary makes 
        partial payments for a covered commodity for any of the 2008 
        through 2010 crop years--
                    (A) the first partial payment shall be made after 
                completion of the first 180 days of the marketing year 
                for the covered commodity; and
                    (B) the final partial payment shall be made 
                beginning October 1, or as soon as practicable 
                thereafter, after the end of the applicable marketing 
                year for the covered commodity.
            (4) Amount of partial payment.--
                    (A) First partial payment.--For each of the 2008 
                through 2010 crops of a covered commodity, the first 
                partial payment under paragraph (3) to the producers on 
                a farm may not exceed 40 percent of the projected 
                counter-cyclical payment for the covered commodity for 
                the crop year, as determined by the Secretary.
                    (B) Final payment.--The final payment for a covered 
                commodity for a crop year shall be equal to the 
                difference between--
                            (i) the actual counter-cyclical payment to 
                        be made to the producers for the covered 
                        commodity for that crop year; and
                            (ii) the amount of the partial payment made 
                        to the producers under subparagraph (A).
            (5) Repayment.--The producers on a farm that receive a 
        partial payment under this subsection for a crop year shall 
        repay to the Secretary the amount, if any, by which the total 
        of the partial payments exceed the actual counter-cyclical 
        payment to be made for the covered commodity for that crop 
        year.

SEC. 1105. AVERAGE CROP REVENUE ELECTION PROGRAM.

    (a) Availability and Election of Alternative Approach.--
            (1) Availability of average crop revenue election 
        payments.--As an alternative to receiving counter-cyclical 
        payments under section 1104 or 1304 and in exchange for a 20-
        percent reduction in direct payments under section 1103 or 1303 
        and a 30-percent reduction in marketing assistance loan rates 
        under section 1202 or 1307, with respect to all covered 
        commodities and peanuts on a farm, during each of the 2009, 
        2010, 2011, and 2012 crop years, the Secretary shall give the 
        producers on the farm an opportunity to make an irrevocable 
        election to instead receive average crop revenue election 
        (referred to in this section as ``ACRE'') payments under this 
        section for the initial crop year for which the election is 
        made through the 2012 crop year.
            (2) Limitation.--
                    (A) In general.--The total number of planted acres 
                for which the producers on a farm may receive ACRE 
                payments under this section may not exceed the total 
                base acreage for all covered commodities and peanuts on 
                the farm.
                    (B) Election.--If the total number of planted acres 
                to all covered commodities and peanuts of the producers 
                on a farm exceeds the total base acreage of the farm, 
                the producers on the farm may choose which planted 
                acres to enroll in the program under this section.
            (3) Election; time for election.--
                    (A) In general.--The Secretary shall provide notice 
                to producers regarding the opportunity to make each of 
                the elections described in paragraph (1).
                    (B) Notice requirements.--The notice shall 
                include--
                            (i) notice of the opportunity of the 
                        producers on a farm to make the election; and
                            (ii) information regarding the manner in 
                        which the election must be made and the time 
                        periods and manner in which notice of the 
                        election must be submitted to the Secretary.
            (4) Election deadline.--Within the time period and in the 
        manner prescribed pursuant to paragraph (3), all of the 
        producers on a farm shall submit to the Secretary notice of an 
        election made under paragraph (1).
            (5) Effect of failure to make election.--If all of the 
        producers on a farm fail to make an election under paragraph 
        (1), make different elections under paragraph (1), or fail to 
        timely notify the Secretary of the election made, as required 
        by paragraph (4), all of the producers on the farm shall be 
        deemed to have made the election to receive counter-cyclical 
        payments under section 1104 or 1304 for all covered commodities 
        and peanuts on the farm, and to otherwise not have made the 
        election described in paragraph (1), for the applicable crop 
        years.
    (b) Payments Required.--
            (1) In general.--In the case of producers on a farm who 
        make an election under subsection (a) to receive ACRE payments 
        for any of the 2009 through 2012 crop years for all covered 
        commodities and peanuts, the Secretary shall make ACRE payments 
        available to the producers on a farm in accordance with this 
        subsection.
            (2) ACRE payment.--
                    (A) In general.--Subject to paragraph (3), in the 
                case of producers on a farm described in paragraph (1), 
                the Secretary shall make ACRE payments available to the 
                producers on a farm for each crop year if--
                            (i) the actual State revenue for the crop 
                        year for the covered commodity or peanuts in 
                        the State determined under subsection (c); is 
                        less than
                            (ii) the ACRE program guarantee for the 
                        crop year for the covered commodity or peanuts 
                        in the State determined under subsection (d).
                    (B) Individual loss.--The Secretary shall make ACRE 
                payments available to the producers on a farm in a 
                State for a crop year only if (as determined by the 
                Secretary)--
                            (i) the actual farm revenue for the crop 
                        year for the covered commodity or peanuts, as 
                        determined under subsection (e); is less than
                            (ii) the farm ACRE benchmark revenue for 
                        the crop year for the covered commodity or 
                        peanuts, as determined under subsection (f).
            (3) Time for payments.--In the case of each of the 2009 
        through 2012 crop years, the Secretary shall make ACRE payments 
        beginning October 1, or as soon as practicable thereafter, 
        after the end of the applicable marketing year for the covered 
        commodity or peanuts.
    (c) Actual State Revenue.--
            (1) In general.--For purposes of subsection (b)(2)(A), the 
        amount of the actual State revenue for a crop year of a covered 
        commodity or peanuts shall equal the product obtained by 
        multiplying--
                    (A) the actual State yield for each planted acre 
                for the crop year for the covered commodity or peanuts 
                determined under paragraph (2); and
                    (B) the national average market price for the crop 
                year for the covered commodity or peanuts determined 
                under paragraph (3).
            (2) Actual state yield.--For purposes of paragraph (1)(A), 
        the actual State yield for each planted acre for a crop year 
        for a covered commodity or peanuts in a State shall equal (as 
        determined by the Secretary)--
                    (A) the quantity of the covered commodity or 
                peanuts that is produced in the State during the crop 
                year; divided by
                    (B) the number of acres that are planted to the 
                covered commodity or peanuts in the State during the 
                crop year.
            (3) National average market price.--For purposes of 
        paragraph (1)(B), the national average market price for a crop 
        year for a covered commodity or peanuts in a State shall equal 
        the greater of--
                    (A) the national average market price received by 
                producers during the 12-month marketing year for the 
                covered commodity or peanuts, as determined by the 
                Secretary; or
                    (B) the marketing assistance loan rate for the 
                covered commodity or peanuts under section 1202 or 
                1307, as reduced under subsection (a)(1).
    (d) ACRE Program Guarantee.--
            (1) Amount.--
                    (A) In general.--For purposes of subsection 
                (b)(2)(A) and subject to subparagraph (B), the ACRE 
                program guarantee for a crop year for a covered 
                commodity or peanuts in a State shall equal 90 percent 
                of the product obtained by multiplying--
                            (i) the benchmark State yield for each 
                        planted acre for the crop year for the covered 
                        commodity or peanuts in a State determined 
                        under paragraph (2); and
                            (ii) the ACRE program guarantee price for 
                        the crop year for the covered commodity or 
                        peanuts determined under paragraph (3).
                    (B) Minimum and maximum guarantee.--In the case of 
                each of the 2010 through 2012 crop years, the ACRE 
                program guarantee for a crop year for a covered 
                commodity or peanuts under subparagraph (A) shall not 
                decrease or increase more than 10 percent from the 
                guarantee for the preceding crop year.
            (2) Benchmark state yield.--
                    (A) In general.--For purposes of paragraph 
                (1)(A)(i), subject to subparagraph (B), the benchmark 
                State yield for each planted acre for a crop year for a 
                covered commodity or peanuts in a State shall equal the 
                average yield per planted acre for the covered 
                commodity or peanuts in the State for the most recent 5 
                crop year yields, excluding each of the crop years with 
                the highest and lowest yields, using National 
                Agricultural Statistics Service data.
                    (B) Assigned yield.--If the Secretary cannot 
                establish the benchmark State yield for each planted 
                acre for a crop year for a covered commodity or peanuts 
                in a State in accordance with subparagraph (A) or if 
                the yield determined under subparagraph (A) is an 
                unrepresentative average yield for the State (as 
                determined by the Secretary), the Secretary shall 
                assign a benchmark State yield for each planted acre 
                for the crop year for the covered commodity or peanuts 
                in the State on the basis of--
                            (i) previous average yields for a period of 
                        5 crop years, excluding each of the crop years 
                        with the highest and lowest yields; or
                            (ii) benchmark State yields for planted 
                        acres for the crop year for the covered 
                        commodity or peanuts in similar States.
            (3) ACRE program guarantee price.--For purposes of 
        paragraph (1)(A)(ii), the ACRE program guarantee price for a 
        crop year for a covered commodity or peanuts in a State shall 
        be the simple average of the national average market price 
        received by producers of the covered commodity or peanuts for 
        the most recent 2 crop years, as determined by the Secretary.
            (4) States with irrigated and nonirrigated land.--In the 
        case of a State in which at least 25 percent of the acreage 
        planted to a covered commodity or peanuts in the State is 
        irrigated and at least 25 percent of the acreage planted to the 
        covered commodity or peanuts in the State is not irrigated, the 
        Secretary shall calculate a separate ACRE program guarantee for 
        the irrigated and nonirrigated areas of the State for the 
        covered commodity or peanuts.
    (e) Actual Farm Revenue.--For purposes of subsection (b)(2)(B)(i), 
the amount of the actual farm revenue for a crop year for a covered 
commodity or peanuts shall equal the amount determined by multiplying--
            (1) the actual yield for the covered commodity or peanuts 
        of the producers on the farm; and
            (2) the national average market price for the crop year for 
        the covered commodity or peanuts determined under subsection 
        (c)(3).
    (f) Farm ACRE Benchmark Revenue.--For purposes of subsection 
(b)(2)(B)(ii), the farm ACRE benchmark revenue for the crop year for a 
covered commodity or peanuts shall equal the sum obtained by adding--
            (1) the amount determined by multiplying--
                    (A) the average yield per planted acre for the 
                covered commodity or peanuts of the producers on the 
                farm for the most recent 5 crop years, excluding each 
                of the crop years with the highest and lowest yields; 
                and
                    (B) the ACRE program guarantee price for the 
                applicable crop year for the covered commodity or 
                peanuts in a State determined under subsection (d)(3); 
                and
            (2) the amount of the per acre crop insurance premium 
        required to be paid by the producers on the farm for the 
        applicable crop year for the covered commodity or peanuts on 
        the farm.
    (g) Payment Amount.--If ACRE payments are required to be paid for 
any of the 2009 through 2012 crop years of a covered commodity or 
peanuts under this section, the amount of the ACRE payment to be paid 
to the producers on the farm for the crop year under this section shall 
be equal to the product obtained by multiplying--
            (1) the lesser of--
                    (A) the difference between--
                            (i) the ACRE program guarantee for the crop 
                        year for the covered commodity or peanuts in 
                        the State determined under subsection (d); and
                            (ii) the actual State revenue from the crop 
                        year for the covered commodity or peanuts in 
                        the State determined under subsection (c); and
                    (B) 25 percent of the ACRE program guarantee for 
                the crop year for the covered commodity or peanuts in 
                the State determined under subsection (d);
            (2)(A) for each of the 2009 through 2011 crop years, 83.3 
        percent of the acreage planted or considered planted to the 
        covered commodity or peanuts for harvest on the farm in the 
        crop year; and
            (B) for the 2012 crop year, 85 percent of the acreage 
        planted or considered planted to the covered commodity or 
        peanuts for harvest on the farm in the crop year; and
            (3) the quotient obtained by dividing--
                    (A) the average yield per planted acre for the 
                covered commodity or peanuts of the producers on the 
                farm for the most recent 5 crop years, excluding each 
                of the crop years with the highest and lowest yields; 
                by
                    (B) the benchmark State yield for the crop year, as 
                determined under subsection (d)(2).

SEC. 1106. PRODUCER AGREEMENT REQUIRED AS CONDITION OF PROVISION OF 
              PAYMENTS.

    (a) Compliance With Certain Requirements.--
            (1) Requirements.--Before the producers on a farm may 
        receive direct payments, counter-cyclical payments, or average 
        crop revenue election payments with respect to the farm, the 
        producers shall agree, during the crop year for which the 
        payments are made and in exchange for the payments--
                    (A) to comply with applicable conservation 
                requirements under subtitle B of title XII of the Food 
                Security Act of 1985 (16 U.S.C. 3811 et seq.);
                    (B) to comply with applicable wetland protection 
                requirements under subtitle C of title XII of that Act 
                (16 U.S.C. 3821 et seq.);
                    (C) to comply with the planting flexibility 
                requirements of section 1107;
                    (D) to use the land on the farm, in a quantity 
                equal to the attributable base acres for the farm and 
                any base acres for peanuts for the farm under subtitle 
                C, for an agricultural or conserving use, and not for a 
                nonagricultural commercial, industrial, or residential 
                use, as determined by the Secretary; and
                    (E) to effectively control noxious weeds and 
                otherwise maintain the land in accordance with sound 
                agricultural practices, as determined by the Secretary, 
                if the agricultural or conserving use involves the 
                noncultivation of any portion of the land referred to 
                in subparagraph (D).
            (2) Compliance.--The Secretary may issue such rules as the 
        Secretary considers necessary to ensure producer compliance 
        with the requirements of paragraph (1).
            (3) Modification.--At the request of the transferee or 
        owner, the Secretary may modify the requirements of this 
        subsection if the modifications are consistent with the 
        objectives of this subsection, as determined by the Secretary.
    (b) Transfer or Change of Interest in Farm.--
            (1) Termination.--
                    (A) In general.--Except as provided in paragraph 
                (2), a transfer of (or change in) the interest of the 
                producers on a farm in base acres for which direct 
                payments or counter-cyclical payments are made, or on 
                which average crop revenue election payments are based, 
                shall result in the termination of the direct payments, 
                counter-cyclical payments, or average crop revenue 
                election payments to the extent the payments are made 
                or based on the base acres, unless the transferee or 
                owner of the acreage agrees to assume all obligations 
                under subsection (a).
                    (B) Effective date.--The termination shall take 
                effect on the date determined by the Secretary.
            (2) Exception.--If a producer entitled to a direct payment, 
        counter-cyclical payment, or average crop revenue election 
        payment dies, becomes incompetent, or is otherwise unable to 
        receive the payment, the Secretary shall make the payment, in 
        accordance with rules issued by the Secretary.
    (c) Reports.--
            (1) Acreage reports.--As a condition on the receipt of any 
        benefits under this subtitle or subtitle B, the Secretary shall 
        require producers on a farm to submit to the Secretary annual 
        acreage reports with respect to all cropland on the farm.
            (2) Production reports.--As a condition on the receipt of 
        any benefits under this subtitle or subtitle B, the Secretary 
        shall require producers on a farm that receive payments under 
        section 1105 to submit to the Secretary annual production 
        reports with respect to all covered commodities and peanuts 
        produced on the farm.
            (3) Penalties.--No penalty with respect to benefits under 
        this subtitle or subtitle B shall be assessed against the 
        producers on a farm for an inaccurate acreage or production 
        report unless the producers on the farm knowingly and willfully 
        falsified the acreage or production report.
    (d) Tenants and Sharecroppers.--In carrying out this subtitle, the 
Secretary shall provide adequate safeguards to protect the interests of 
tenants and sharecroppers.
    (e) Sharing of Payments.--The Secretary shall provide for the 
sharing of direct payments, counter-cyclical payments, or average crop 
revenue election payments among the producers on a farm on a fair and 
equitable basis.

SEC. 1107. PLANTING FLEXIBILITY.

    (a) Permitted Crops.--Subject to subsection (b), any commodity or 
crop may be planted on base acres on a farm.
    (b) Limitations Regarding Certain Commodities.--
            (1) General limitation.--The planting of an agricultural 
        commodity specified in paragraph (3) shall be prohibited on 
        base acres unless the commodity, if planted, is destroyed 
        before harvest.
            (2) Treatment of trees and other perennials.--The planting 
        of an agricultural commodity specified in paragraph (3) that is 
        produced on a tree or other perennial plant shall be prohibited 
        on base acres.
            (3) Covered agricultural commodities.--Paragraphs (1) and 
        (2) apply to the following agricultural commodities:
                    (A) Fruits.
                    (B) Vegetables (other than mung beans and pulse 
                crops).
                    (C) Wild rice.
    (c) Exceptions.--Paragraphs (1) and (2) of subsection (b) shall not 
limit the planting of an agricultural commodity specified in paragraph 
(3) of that subsection--
            (1) in any region in which there is a history of double-
        cropping of covered commodities with agricultural commodities 
        specified in subsection (b)(3), as determined by the Secretary, 
        in which case the double-cropping shall be permitted;
            (2) on a farm that the Secretary determines has a history 
        of planting agricultural commodities specified in subsection 
        (b)(3) on base acres, except that direct payments and counter-
        cyclical payments shall be reduced by an acre for each acre 
        planted to such an agricultural commodity; or
            (3) by the producers on a farm that the Secretary 
        determines has an established planting history of a specific 
        agricultural commodity specified in subsection (b)(3), except 
        that--
                    (A) the quantity planted may not exceed the average 
                annual planting history of such agricultural commodity 
                by the producers on the farm in the 1991 through 1995 
                or 1998 through 2001 crop years (excluding any crop 
                year in which no plantings were made), as determined by 
                the Secretary; and
                    (B) direct payments and counter-cyclical payments 
                shall be reduced by an acre for each acre planted to 
                such agricultural commodity.
    (d) Planting Transferability Pilot Project.--
            (1) Pilot project authorized.--Notwithstanding paragraphs 
        (1) and (2) of subsection (b) and in addition to the exceptions 
        provided in subsection (c), the Secretary shall carry out a 
        pilot project to permit the planting of cucumbers, green peas, 
        lima beans, pumpkins, snap beans, sweet corn, and tomatoes 
        grown for processing on base acres during each of the 2009 
        through 2012 crop years.
            (2) Pilot project states and acres.--The number of base 
        acres eligible during each crop year for the pilot project 
        under paragraph (1) shall be--
                    (A) 9,000 acres in the State of Illinois;
                    (B) 9,000 acres in the State of Indiana;
                    (C) 1,000 acres in the State of Iowa;
                    (D) 9,000 acres in the State of Michigan;
                    (E) 34,000 acres in the State of Minnesota;
                    (F) 4,000 acres in the State of Ohio; and
                    (G) 9,000 acres in the State of Wisconsin.
            (3) Contract and management requirements.--To be eligible 
        for selection to participate in the pilot project, the 
        producers on a farm shall--
                    (A) demonstrate to the Secretary that the producers 
                on the farm have entered into a contract to produce a 
                crop of a commodity specified in paragraph (1) for 
                processing;
                    (B) agree to produce the crop as part of a program 
                of crop rotation on the farm to achieve agronomic and 
                pest and disease management benefits; and
                    (C) provide evidence of the disposition of the 
                crop.
            (4) Temporary reduction in base acres.--The base acres on a 
        farm for a crop year shall be reduced by an acre for each acre 
        planted under the pilot program.
            (5) Duration of reductions.--The reduction in the base 
        acres of a farm for a crop year under paragraph (4) shall 
        expire at the end of the crop year.
            (6) Recalculation of base acres.--
                    (A) In general.--If the Secretary recalculates base 
                acres for a farm while the farm is included in the 
                pilot project, the planting and production of a crop of 
                a commodity specified in paragraph (1) on base acres 
                for which a temporary reduction was made under this 
                section shall be considered to be the same as the 
                planting and production of a covered commodity.
                    (B) Prohibition.--Nothing in this paragraph 
                provides authority for the Secretary to recalculate 
                base acres for a farm.
            (7) Pilot impact evaluation.--
                    (A) In general.--The Secretary shall periodically 
                evaluate the pilot project conducted under this 
                subsection to determine the effects of the pilot 
                project on the supply and price of--
                            (i) fresh fruits and vegetables; and
                            (ii) fruits and vegetables for processing.
                    (B) Determination.--An evaluation under 
                subparagraph (A) shall include a determination as to 
                whether--
                            (i) producers of fresh fruits and 
                        vegetables are being negatively impacted; and
                            (ii) existing production capacities are 
                        being supplanted.
                    (C) Report.--As soon as practicable after 
                conducting an evaluation under subparagraph (A), the 
                Secretary shall submit to the Committee on Agriculture 
                of the House of Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the Senate a 
                report that describes the results of the evaluation.

SEC. 1108. SPECIAL RULE FOR LONG GRAIN AND MEDIUM GRAIN RICE.

    (a) Calculation Method.--Subject to subsections (b) and (c), for 
the purposes of determining the amount of the counter-cyclical payments 
to be paid to the producers on a farm for long grain rice and medium 
grain rice under section 1104, the base acres of rice on the farm shall 
be apportioned using the 4-year average of the percentages of acreage 
planted in the applicable State to long grain rice and medium grain 
rice during the 2003 through 2006 crop years, as determined by the 
Secretary.
    (b) Producer Election.--As an alternative to the calculation method 
described in subsection (a), the Secretary shall provide producers on a 
farm the opportunity to elect to apportion rice base acres on the farm 
using the 4-year average of--
            (1) the percentages of acreage planted on the farm to long 
        grain rice and medium grain rice during the 2003 through 2006 
        crop years;
            (2) the percentages of any acreage on the farm that the 
        producers were prevented from planting to long grain rice and 
        medium grain rice during the 2003 through 2006 crop years 
        because of drought, flood, other natural disaster, or other 
        condition beyond the control of the producers, as determined by 
        the Secretary; and
            (3) in the case of a crop year for which a producer on a 
        farm elected not to plant to long grain and medium grain rice 
        during the 2003 through 2006 crop years, the percentages of 
        acreage planted in the applicable State to long grain rice and 
        medium grain rice, as determined by the Secretary.
    (c) Limitation.--In carrying out this section, the Secretary shall 
use the same total base acres, payment acres, and payment yields 
established with respect to rice under sections 1101 and 1102 of the 
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911, 7912), 
as in effect on September 30, 2007, subject to any adjustment under 
section 1101 of this Act.

SEC. 1109. PERIOD OF EFFECTIVENESS.

    This subtitle shall be effective beginning with the 2008 crop year 
of each covered commodity through the 2012 crop year.

  Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR 
              LOAN COMMODITIES.

    (a) Nonrecourse Loans Available.--
            (1) Availability.--For each of the 2008 through 2012 crops 
        of each loan commodity, the Secretary shall make available to 
        producers on a farm nonrecourse marketing assistance loans for 
        loan commodities produced on the farm.
            (2) Terms and conditions.--The marketing assistance loans 
        shall be made under terms and conditions that are prescribed by 
        the Secretary and at the loan rate established under section 
        1202 for the loan commodity.
    (b) Eligible Production.--The producers on a farm shall be eligible 
for a marketing assistance loan under subsection (a) for any quantity 
of a loan commodity produced on the farm.
    (c) Compliance With Conservation and Wetlands Requirements.--As a 
condition of the receipt of a marketing assistance loan under 
subsection (a), the producer shall comply with applicable conservation 
requirements under subtitle B of title XII of the Food Security Act of 
1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection 
requirements under subtitle C of title XII of that Act (16 U.S.C. 3821 
et seq.) during the term of the loan.

SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE LOANS.

    (a) 2008 Crop Year.--For purposes of the 2008 crop year, the loan 
rate for a marketing assistance loan under section 1201 for a loan 
commodity shall be equal to the following:
            (1) In the case of wheat, $2.75 per bushel.
            (2) In the case of corn, $1.95 per bushel.
            (3) In the case of grain sorghum, $1.95 per bushel.
            (4) In the case of barley, $1.85 per bushel.
            (5) In the case of oats, $1.33 per bushel.
            (6) In the case of base quality of upland cotton, $0.52 per 
        pound.
            (7) In the case of extra long staple cotton, $0.7977 per 
        pound.
            (8) In the case of long grain rice, $6.50 per 
        hundredweight.
            (9) In the case of medium grain rice, $6.50 per 
        hundredweight.
            (10) In the case of soybeans, $5.00 per bushel.
            (11) In the case of other oilseeds, $9.30 per hundredweight 
        for each of the following kinds of oilseeds:
                    (A) Sunflower seed.
                    (B) Rapeseed.
                    (C) Canola.
                    (D) Safflower.
                    (E) Flaxseed.
                    (F) Mustard seed.
                    (G) Crambe.
                    (H) Sesame seed.
                    (I) Other oilseeds designated by the Secretary.
            (12) In the case of dry peas, $6.22 per hundredweight.
            (13) In the case of lentils, $11.72 per hundredweight.
            (14) In the case of small chickpeas, $7.43 per 
        hundredweight.
            (15) In the case of graded wool, $1.00 per pound.
            (16) In the case of nongraded wool, $0.40 per pound.
            (17) In the case of mohair, $4.20 per pound.
            (18) In the case of honey, $0.60 per pound.
    (b) 2009 Crop Year.--Except as provided in section 1105, for 
purposes of the 2009 crop year, the loan rate for a marketing 
assistance loan under section 1201 for a loan commodity shall be equal 
to the following:
            (1) In the case of wheat, $2.75 per bushel.
            (2) In the case of corn, $1.95 per bushel.
            (3) In the case of grain sorghum, $1.95 per bushel.
            (4) In the case of barley, $1.85 per bushel.
            (5) In the case of oats, $1.33 per bushel.
            (6) In the case of base quality of upland cotton, $0.52 per 
        pound.
            (7) In the case of extra long staple cotton, $0.7977 per 
        pound.
            (8) In the case of long grain rice, $6.50 per 
        hundredweight.
            (9) In the case of medium grain rice, $6.50 per 
        hundredweight.
            (10) In the case of soybeans, $5.00 per bushel.
            (11) In the case of other oilseeds, $9.30 per hundredweight 
        for each of the following kinds of oilseeds:
                    (A) Sunflower seed.
                    (B) Rapeseed.
                    (C) Canola.
                    (D) Safflower.
                    (E) Flaxseed.
                    (F) Mustard seed.
                    (G) Crambe.
                    (H) Sesame seed.
                    (I) Other oilseeds designated by the Secretary.
            (12) In the case of dry peas, $5.40 per hundredweight.
            (13) In the case of lentils, $11.28 per hundredweight.
            (14) In the case of small chickpeas, $7.43 per 
        hundredweight.
            (15) In the case of large chickpeas, $11.28 per 
        hundredweight.
            (16) In the case of graded wool, $1.00 per pound.
            (17) In the case of nongraded wool, $0.40 per pound.
            (18) In the case of mohair, $4.20 per pound.
            (19) In the case of honey, $0.60 per pound.
    (c) 2010 Through 2012 Crop Years.--Except as provided in section 
1105, for purposes of each of the 2010 through 2012 crop years, the 
loan rate for a marketing assistance loan under section 1201 for a loan 
commodity shall be equal to the following:
            (1) In the case of wheat, $2.94 per bushel.
            (2) In the case of corn, $1.95 per bushel.
            (3) In the case of grain sorghum, $1.95 per bushel.
            (4) In the case of barley, $1.95 per bushel.
            (5) In the case of oats, $1.39 per bushel.
            (6) In the case of base quality of upland cotton, $0.52 per 
        pound.
            (7) In the case of extra long staple cotton, $0.7977 per 
        pound.
            (8) In the case of long grain rice, $6.50 per 
        hundredweight.
            (9) In the case of medium grain rice, $6.50 per 
        hundredweight.
            (10) In the case of soybeans, $5.00 per bushel.
            (11) In the case of other oilseeds, $10.09 per 
        hundredweight for each of the following kinds of oilseeds:
                    (A) Sunflower seed.
                    (B) Rapeseed.
                    (C) Canola.
                    (D) Safflower.
                    (E) Flaxseed.
                    (F) Mustard seed.
                    (G) Crambe.
                    (H) Sesame seed.
                    (I) Other oilseeds designated by the Secretary.
            (12) In the case of dry peas, $5.40 per hundredweight.
            (13) In the case of lentils, $11.28 per hundredweight.
            (14) In the case of small chickpeas, $7.43 per 
        hundredweight.
            (15) In the case of large chickpeas, $11.28 per 
        hundredweight.
            (16) In the case of graded wool, $1.15 per pound.
            (17) In the case of nongraded wool, $0.40 per pound.
            (18) In the case of mohair, $4.20 per pound.
            (19) In the case of honey, $0.69 per pound.
    (d) Single County Loan Rate for Other Oilseeds.--The Secretary 
shall establish a single loan rate in each county for each kind of 
other oilseeds described in subsections (a)(11), (b)(11), and (c)(11).

SEC. 1203. TERM OF LOANS.

    (a) Term of Loan.--In the case of each loan commodity, a marketing 
assistance loan under section 1201 shall have a term of 9 months 
beginning on the first day of the first month after the month in which 
the loan is made.
    (b) Extensions Prohibited.--The Secretary may not extend the term 
of a marketing assistance loan for any loan commodity.

SEC. 1204. REPAYMENT OF LOANS.

    (a) General Rule.--The Secretary shall permit the producers on a 
farm to repay a marketing assistance loan under section 1201 for a loan 
commodity (other than upland cotton, long grain rice, medium grain 
rice, extra long staple cotton, and confectionery and each other kind 
of sunflower seed (other than oil sunflower seed)) at a rate that is 
the lesser of--
            (1) the loan rate established for the commodity under 
        section 1202, plus interest (determined in accordance with 
        section 163 of the Federal Agriculture Improvement and Reform 
        Act of 1996 (7 U.S.C. 7283));
            (2) a rate (as determined by the Secretary) that--
                    (A) is calculated based on average market prices 
                for the loan commodity during the preceding 30-day 
                period; and
                    (B) will minimize discrepancies in marketing loan 
                benefits across State boundaries and across county 
                boundaries; or
            (3) a rate that the Secretary may develop using alternative 
        methods for calculating a repayment rate for a loan commodity 
        that the Secretary determines will--
                    (A) minimize potential loan forfeitures;
                    (B) minimize the accumulation of stocks of the 
                commodity by the Federal Government;
                    (C) minimize the cost incurred by the Federal 
                Government in storing the commodity;
                    (D) allow the commodity produced in the United 
                States to be marketed freely and competitively, both 
                domestically and internationally; and
                    (E) minimize discrepancies in marketing loan 
                benefits across State boundaries and across county 
                boundaries.
    (b) Repayment Rates for Upland Cotton, Long Grain Rice, and Medium 
Grain Rice.--The Secretary shall permit producers to repay a marketing 
assistance loan under section 1201 for upland cotton, long grain rice, 
and medium grain rice at a rate that is the lesser of--
            (1) the loan rate established for the commodity under 
        section 1202, plus interest (determined in accordance with 
        section 163 of the Federal Agriculture Improvement and Reform 
        Act of 1996 (7 U.S.C. 7283)); or
            (2) the prevailing world market price for the commodity, as 
        determined and adjusted by the Secretary in accordance with 
        this section.
    (c) Repayment Rates for Extra Long Staple Cotton.--Repayment of a 
marketing assistance loan for extra long staple cotton shall be at the 
loan rate established for the commodity under section 1202, plus 
interest (determined in accordance with section 163 of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
    (d) Prevailing World Market Price.--For purposes of this section 
and section 1207, the Secretary shall prescribe by regulation--
            (1) a formula to determine the prevailing world market 
        price for each of upland cotton, long grain rice, and medium 
        grain rice; and
            (2) a mechanism by which the Secretary shall announce 
        periodically those prevailing world market prices.
    (e) Adjustment of Prevailing World Market Price for Upland Cotton, 
Long Grain Rice, and Medium Grain Rice.--
            (1) Rice.--The prevailing world market price for long grain 
        rice and medium grain rice determined under subsection (d) 
        shall be adjusted to United States quality and location.
            (2) Cotton.--The prevailing world market price for upland 
        cotton determined under subsection (d)--
                    (A) shall be adjusted to United States quality and 
                location, with the adjustment to include--
                            (i) a reduction equal to any United States 
                        Premium Factor for upland cotton of a quality 
                        higher than Middling (M) 1\3/32\-inch; and
                            (ii) the average costs to market the 
                        commodity, including average transportation 
                        costs, as determined by the Secretary; and
                    (B) may be further adjusted, during the period 
                beginning on the date of enactment of this Act and 
                ending on July 31, 2013, if the Secretary determines 
                the adjustment is necessary to--
                            (i) minimize potential loan forfeitures;
                            (ii) minimize the accumulation of stocks of 
                        upland cotton by the Federal Government;
                            (iii) ensure that upland cotton produced in 
                        the United States can be marketed freely and 
                        competitively, both domestically and 
                        internationally; and
                            (iv) ensure an appropriate transition 
                        between current-crop and forward-crop price 
                        quotations, except that the Secretary may use 
                        forward-crop price quotations prior to July 31 
                        of a marketing year only if--
                                    (I) there are insufficient current-
                                crop price quotations; and
                                    (II) the forward-crop price 
                                quotation is the lowest such quotation 
                                available.
            (3) Guidelines for additional adjustments.--In making 
        adjustments under this subsection, the Secretary shall 
        establish a mechanism for determining and announcing the 
        adjustments in order to avoid undue disruption in the United 
        States market.
    (f) Repayment Rates for Confectionery and Other Kinds of Sunflower 
Seeds.--The Secretary shall permit the producers on a farm to repay a 
marketing assistance loan under section 1201 for confectionery and each 
other kind of sunflower seed (other than oil sunflower seed) at a rate 
that is the lesser of--
            (1) the loan rate established for the commodity under 
        section 1202, plus interest (determined in accordance with 
        section 163 of the Federal Agriculture Improvement and Reform 
        Act of 1996 (7 U.S.C. 7283)); or
            (2) the repayment rate established for oil sunflower seed.
    (g) Payment of Cotton Storage Costs.--
            (1) 2008 through 2011 crop years.--Effective for each of 
        the 2008 through 2011 crop years, the Secretary shall provide 
        cotton storage payments in the same manner, and at the same 
        rates as the Secretary provided storage payments for the 2006 
        crop of cotton, except that the rates shall be reduced by 10 
        percent.
            (2) Subsequent crop years.--Beginning with the 2012 crop 
        year, the Secretary shall provide cotton storage payments in 
        the same manner, and at the same rates as the Secretary 
        provided storage payments for the 2006 crop of cotton, except 
        that the rates shall be reduced by 20 percent.
    (h) Authority to Temporarily Adjust Repayment Rates.--
            (1) Adjustment authority.--In the event of a severe 
        disruption to marketing, transportation, or related 
        infrastructure, the Secretary may modify the repayment rate 
        otherwise applicable under this section for marketing 
        assistance loans under section 1201 for a loan commodity.
            (2) Duration.--Any adjustment made under paragraph (1) in 
        the repayment rate for marketing assistance loans for a loan 
        commodity shall be in effect on a short-term and temporary 
        basis, as determined by the Secretary.

SEC. 1205. LOAN DEFICIENCY PAYMENTS.

    (a) Availability of Loan Deficiency Payments.--
            (1) In general.--Except as provided in subsection (d), the 
        Secretary may make loan deficiency payments available to 
        producers on a farm that, although eligible to obtain a 
        marketing assistance loan under section 1201 with respect to a 
        loan commodity, agree to forgo obtaining the loan for the 
        commodity in return for loan deficiency payments under this 
        section.
            (2) Unshorn pelts, hay, and silage.--
                    (A) Marketing assistance loans.--Subject to 
                subparagraph (B), nongraded wool in the form of unshorn 
                pelts and hay and silage derived from a loan commodity 
                are not eligible for a marketing assistance loan under 
                section 1201.
                    (B) Loan deficiency payment.--Effective for the 
                2008 through 2012 crop years, the Secretary may make 
                loan deficiency payments available under this section 
                to producers on a farm that produce unshorn pelts or 
                hay and silage derived from a loan commodity.
    (b) Computation.--A loan deficiency payment for a loan commodity or 
commodity referred to in subsection (a)(2) shall be computed by 
multiplying--
            (1) the payment rate determined under subsection (c) for 
        the commodity; by
            (2) the quantity of the commodity produced by the eligible 
        producers, excluding any quantity for which the producers 
        obtain a marketing assistance loan under section 1201.
    (c) Payment Rate.--
            (1) In general.--In the case of a loan commodity, the 
        payment rate shall be the amount by which--
                    (A) the loan rate established under section 1202 
                for the loan commodity; exceeds
                    (B) the rate at which a marketing assistance loan 
                for the loan commodity may be repaid under section 
                1204.
            (2) Unshorn pelts.--In the case of unshorn pelts, the 
        payment rate shall be the amount by which--
                    (A) the loan rate established under section 1202 
                for ungraded wool; exceeds
                    (B) the rate at which a marketing assistance loan 
                for ungraded wool may be repaid under section 1204.
            (3) Hay and silage.--In the case of hay or silage derived 
        from a loan commodity, the payment rate shall be the amount by 
        which--
                    (A) the loan rate established under section 1202 
                for the loan commodity from which the hay or silage is 
                derived; exceeds
                    (B) the rate at which a marketing assistance loan 
                for the loan commodity may be repaid under section 
                1204.
    (d) Exception for Extra Long Staple Cotton.--This section shall not 
apply with respect to extra long staple cotton.
    (e) Effective Date for Payment Rate Determination.--The Secretary 
shall determine the amount of the loan deficiency payment to be made 
under this section to the producers on a farm with respect to a 
quantity of a loan commodity or commodity referred to in subsection 
(a)(2) using the payment rate in effect under subsection (c) as of the 
date the producers request the payment.

SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR GRAZED 
              ACREAGE.

    (a) Eligible Producers.--
            (1) In general.--Effective for the 2008 through 2012 crop 
        years, in the case of a producer that would be eligible for a 
        loan deficiency payment under section 1205 for wheat, barley, 
        or oats, but that elects to use acreage planted to the wheat, 
        barley, or oats for the grazing of livestock, the Secretary 
        shall make a payment to the producer under this section if the 
        producer enters into an agreement with the Secretary to forgo 
        any other harvesting of the wheat, barley, or oats on that 
        acreage.
            (2) Grazing of triticale acreage.--Effective for the 2008 
        through 2012 crop years, with respect to a producer on a farm 
        that uses acreage planted to triticale for the grazing of 
        livestock, the Secretary shall make a payment to the producer 
        under this section if the producer enters into an agreement 
        with the Secretary to forgo any other harvesting of triticale 
        on that acreage.
    (b) Payment Amount.--
            (1) In general.--The amount of a payment made under this 
        section to a producer on a farm described in subsection (a)(1) 
        shall be equal to the amount determined by multiplying--
                    (A) the loan deficiency payment rate determined 
                under section 1205(c) in effect, as of the date of the 
                agreement, for the county in which the farm is located; 
                by
                    (B) the payment quantity determined by 
                multiplying--
                            (i) the quantity of the grazed acreage on 
                        the farm with respect to which the producer 
                        elects to forgo harvesting of wheat, barley, or 
                        oats; and
                            (ii) the payment yield in effect for the 
                        calculation of direct payments under subtitle A 
                        with respect to that loan commodity on the farm 
                        or, in the case of a farm without a payment 
                        yield for that loan commodity, an appropriate 
                        yield established by the Secretary in a manner 
                        consistent with section 1102 of the Farm 
                        Security and Rural Investment Act of 2002 (7 
                        U.S.C. 7912).
            (2) Grazing of triticale acreage.--The amount of a payment 
        made under this section to a producer on a farm described in 
        subsection (a)(2) shall be equal to the amount determined by 
        multiplying--
                    (A) the loan deficiency payment rate determined 
                under section 1205(c) in effect for wheat, as of the 
                date of the agreement, for the county in which the farm 
                is located; by
                    (B) the payment quantity determined by 
                multiplying--
                            (i) the quantity of the grazed acreage on 
                        the farm with respect to which the producer 
                        elects to forgo harvesting of triticale; and
                            (ii) the payment yield in effect for the 
                        calculation of direct payments under subtitle A 
                        with respect to wheat on the farm or, in the 
                        case of a farm without a payment yield for 
                        wheat, an appropriate yield established by the 
                        Secretary in a manner consistent with section 
                        1102 of the Farm Security and Rural Investment 
                        Act of 2002 (7 U.S.C. 7912).
    (c) Time, Manner, and Availability of Payment.--
            (1) Time and manner.--A payment under this section shall be 
        made at the same time and in the same manner as loan deficiency 
        payments are made under section 1205.
            (2) Availability.--
                    (A) In general.--The Secretary shall establish an 
                availability period for the payments authorized by this 
                section.
                    (B) Certain commodities.--In the case of wheat, 
                barley, and oats, the availability period shall be 
                consistent with the availability period for the 
                commodity established by the Secretary for marketing 
                assistance loans authorized by this subtitle.
    (d) Prohibition on Crop Insurance Indemnity or Noninsured Crop 
Assistance.--A 2008 through 2012 crop of wheat, barley, oats, or 
triticale planted on acreage that a producer elects, in the agreement 
required by subsection (a), to use for the grazing of livestock in lieu 
of any other harvesting of the crop shall not be eligible for an 
indemnity under a policy or plan of insurance authorized under the 
Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop 
assistance under section 196 of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7333).

SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON.

    (a) Special Import Quota.--
            (1) Definition of special import quota.--In this 
        subsection, the term ``special import quota'' means a quantity 
        of imports that is not subject to the over-quota tariff rate of 
        a tariff-rate quota.
            (2) Establishment.--
                    (A) In general.--The President shall carry out an 
                import quota program during the period beginning on the 
                date of enactment of this Act through July 31, 2013, as 
                provided in this subsection.
                    (B) Program requirements.--Whenever the Secretary 
                determines and announces that for any consecutive 4-
                week period, the Friday through Thursday average price 
                quotation for the lowest-priced United States growth, 
                as quoted for Middling (M) 1\3/32\-inch cotton, 
                delivered to a definable and significant international 
                market, as determined by the Secretary, exceeds the 
                prevailing world market price, there shall immediately 
                be in effect a special import quota.
            (3) Quantity.--The quota shall be equal to 1 week's 
        consumption of cotton by domestic mills at the seasonally 
        adjusted average rate of the most recent 3 months for which 
        data are available.
            (4) Application.--The quota shall apply to upland cotton 
        purchased not later than 90 days after the date of the 
        Secretary's announcement under paragraph (2) and entered into 
        the United States not later than 180 days after that date.
            (5) Overlap.--A special quota period may be established 
        that overlaps any existing quota period if required by 
        paragraph (2), except that a special quota period may not be 
        established under this subsection if a quota period has been 
        established under subsection (b).
            (6) Preferential tariff treatment.--The quantity under a 
        special import quota shall be considered to be an in-quota 
        quantity for purposes of--
                    (A) section 213(d) of the Caribbean Basin Economic 
                Recovery Act (19 U.S.C. 2703(d));
                    (B) section 204 of the Andean Trade Preference Act 
                (19 U.S.C. 3203);
                    (C) section 503(d) of the Trade Act of 1974 (19 
                U.S.C. 2463(d)); and
                    (D) General Note 3(a)(iv) to the Harmonized Tariff 
                Schedule.
            (7) Limitation.--The quantity of cotton entered into the 
        United States during any marketing year under the special 
        import quota established under this subsection may not exceed 
        the equivalent of 10 week's consumption of upland cotton by 
        domestic mills at the seasonally adjusted average rate of the 3 
        months immediately preceding the first special import quota 
        established in any marketing year.
    (b) Limited Global Import Quota for Upland Cotton.--
            (1) Definitions.--In this subsection:
                    (A) Supply.--The term ``supply'' means, using the 
                latest official data of the Bureau of the Census, the 
                Department of Agriculture, and the Department of the 
                Treasury--
                            (i) the carry-over of upland cotton at the 
                        beginning of the marketing year (adjusted to 
                        480-pound bales) in which the quota is 
                        established;
                            (ii) production of the current crop; and
                            (iii) imports to the latest date available 
                        during the marketing year.
                    (B) Demand.--The term ``demand'' means--
                            (i) the average seasonally adjusted annual 
                        rate of domestic mill consumption of cotton 
                        during the most recent 3 months for which data 
                        are available; and
                            (ii) the larger of--
                                    (I) average exports of upland 
                                cotton during the preceding 6 marketing 
                                years; or
                                    (II) cumulative exports of upland 
                                cotton plus outstanding export sales 
                                for the marketing year in which the 
                                quota is established.
                    (C) Limited global import quota.--The term 
                ``limited global import quota'' means a quantity of 
                imports that is not subject to the over-quota tariff 
                rate of a tariff-rate quota.
            (2) Program.--The President shall carry out an import quota 
        program that provides that whenever the Secretary determines 
        and announces that the average price of the base quality of 
        upland cotton, as determined by the Secretary, in the 
        designated spot markets for a month exceeded 130 percent of the 
        average price of the quality of cotton in the markets for the 
        preceding 36 months, notwithstanding any other provision of 
        law, there shall immediately be in effect a limited global 
        import quota subject to the following conditions:
                    (A) Quantity.--The quantity of the quota shall be 
                equal to 21 days of domestic mill consumption of upland 
                cotton at the seasonally adjusted average rate of the 
                most recent 3 months for which data are available or as 
                estimated by the Secretary.
                    (B) Quantity if prior quota.--If a quota has been 
                established under this subsection during the preceding 
                12 months, the quantity of the quota next established 
                under this subsection shall be the smaller of 21 days 
                of domestic mill consumption calculated under 
                subparagraph (A) or the quantity required to increase 
                the supply to 130 percent of the demand.
                    (C) Preferential tariff treatment.--The quantity 
                under a limited global import quota shall be considered 
                to be an in-quota quantity for purposes of--
                            (i) section 213(d) of the Caribbean Basin 
                        Economic Recovery Act (19 U.S.C. 2703(d));
                            (ii) section 204 of the Andean Trade 
                        Preference Act (19 U.S.C. 3203);
                            (iii) section 503(d) of the Trade Act of 
                        1974 (19 U.S.C. 2463(d)); and
                            (iv) General Note 3(a)(iv) to the 
                        Harmonized Tariff Schedule.
                    (D) Quota entry period.--When a quota is 
                established under this subsection, cotton may be 
                entered under the quota during the 90-day period 
                beginning on the date the quota is established by the 
                Secretary.
            (3) No overlap.--Notwithstanding paragraph (2), a quota 
        period may not be established that overlaps an existing quota 
        period or a special quota period established under subsection 
        (a).
    (c) Economic Adjustment Assistance to Users of Upland Cotton.--
            (1) In general.--Subject to paragraph (2), the Secretary 
        shall, on a monthly basis, provide economic adjustment 
        assistance to domestic users of upland cotton in the form of 
        payments for all documented use of that upland cotton during 
        the previous monthly period regardless of the origin of the 
        upland cotton.
            (2) Value of assistance.--
                    (A) Beginning period.--During the period beginning 
                on August 1, 2008, and ending on July 31, 2012, the 
                value of the assistance provided under paragraph (1) 
                shall be 4 cents per pound.
                    (B) Subsequent period.--Effective beginning on 
                August 1, 2012, the value of the assistance provided 
                under paragraph (1) shall be 3 cents per pound.
            (3) Allowable purposes.--Economic adjustment assistance 
        under this subsection shall be made available only to domestic 
        users of upland cotton that certify that the assistance shall 
        be used only to acquire, construct, install, modernize, 
        develop, convert, or expand land, plant, buildings, equipment, 
        facilities, or machinery.
            (4) Review or audit.--The Secretary may conduct such review 
        or audit of the records of a domestic user under this 
        subsection as the Secretary determines necessary to carry out 
        this subsection.
            (5) Improper use of assistance.--If the Secretary 
        determines, after a review or audit of the records of the 
        domestic user, that economic adjustment assistance under this 
        subsection was not used for the purposes specified in paragraph 
        (3), the domestic user shall be--
                    (A) liable to repay the assistance to the 
                Secretary, plus interest, as determined by the 
                Secretary; and
                    (B) ineligible to receive assistance under this 
                subsection for a period of 1 year following the 
                determination of the Secretary.

SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG STAPLE COTTON.

    (a) Competitiveness Program.--Notwithstanding any other provision 
of law, during the period beginning on the date of enactment of this 
Act through July 31, 2013, the Secretary shall carry out a program--
            (1) to maintain and expand the domestic use of extra long 
        staple cotton produced in the United States;
            (2) to increase exports of extra long staple cotton 
        produced in the United States; and
            (3) to ensure that extra long staple cotton produced in the 
        United States remains competitive in world markets.
    (b) Payments Under Program; Trigger.--Under the program, the 
Secretary shall make payments available under this section whenever--
            (1) for a consecutive 4-week period, the world market price 
        for the lowest priced competing growth of extra long staple 
        cotton (adjusted to United States quality and location and for 
        other factors affecting the competitiveness of such cotton), as 
        determined by the Secretary, is below the prevailing United 
        States price for a competing growth of extra long staple 
        cotton; and
            (2) the lowest priced competing growth of extra long staple 
        cotton (adjusted to United States quality and location and for 
        other factors affecting the competitiveness of such cotton), as 
        determined by the Secretary, is less than 134 percent of the 
        loan rate for extra long staple cotton.
    (c) Eligible Recipients.--The Secretary shall make payments 
available under this section to domestic users of extra long staple 
cotton produced in the United States and exporters of extra long staple 
cotton produced in the United States that enter into an agreement with 
the Commodity Credit Corporation to participate in the program under 
this section.
    (d) Payment Amount.--Payments under this section shall be based on 
the amount of the difference in the prices referred to in subsection 
(b)(1) during the fourth week of the consecutive 4-week period 
multiplied by the amount of documented purchases by domestic users and 
sales for export by exporters made in the week following such a 
consecutive 4-week period.

SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE FEED GRAINS 
              AND SEED COTTON.

    (a) High Moisture Feed Grains.--
            (1) Definition of high moisture state.--In this subsection, 
        the term ``high moisture state'' means corn or grain sorghum 
        having a moisture content in excess of Commodity Credit 
        Corporation standards for marketing assistance loans made by 
        the Secretary under section 1201.
            (2) Recourse loans available.--For each of the 2008 through 
        2012 crops of corn and grain sorghum, the Secretary shall make 
        available recourse loans, as determined by the Secretary, to 
        producers on a farm that--
                    (A) normally harvest all or a portion of their crop 
                of corn or grain sorghum in a high moisture state;
                    (B) present--
                            (i) certified scale tickets from an 
                        inspected, certified commercial scale, 
                        including a licensed warehouse, feedlot, feed 
                        mill, distillery, or other similar entity 
                        approved by the Secretary, pursuant to 
                        regulations issued by the Secretary; or
                            (ii) field or other physical measurements 
                        of the standing or stored crop in regions of 
                        the United States, as determined by the 
                        Secretary, that do not have certified 
                        commercial scales from which certified scale 
                        tickets may be obtained within reasonable 
                        proximity of harvest operation;
                    (C) certify that they were the owners of the feed 
                grain at the time of delivery to, and that the quantity 
                to be placed under loan under this subsection was in 
                fact harvested on the farm and delivered to, a feedlot, 
                feed mill, or commercial or on-farm high-moisture 
                storage facility, or to a facility maintained by the 
                users of corn and grain sorghum in a high moisture 
                state; and
                    (D) comply with deadlines established by the 
                Secretary for harvesting the corn or grain sorghum and 
                submit applications for loans under this subsection 
                within deadlines established by the Secretary.
            (3) Eligibility of acquired feed grains.--A loan under this 
        subsection shall be made on a quantity of corn or grain sorghum 
        of the same crop acquired by the producer equivalent to a 
        quantity determined by multiplying--
                    (A) the acreage of the corn or grain sorghum in a 
                high moisture state harvested on the producer's farm; 
                by
                    (B) the lower of the farm program payment yield 
                used to make counter-cyclical payments under subtitle A 
                or the actual yield on a field, as determined by the 
                Secretary, that is similar to the field from which the 
                corn or grain sorghum was obtained.
    (b) Recourse Loans Available for Seed Cotton.--For each of the 2008 
through 2012 crops of upland cotton and extra long staple cotton, the 
Secretary shall make available recourse seed cotton loans, as 
determined by the Secretary, on any production.
    (c) Repayment Rates.--Repayment of a recourse loan made under this 
section shall be at the loan rate established for the commodity by the 
Secretary, plus interest (determined in accordance with section 163 of 
the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7283)).

SEC. 1210. ADJUSTMENTS OF LOANS.

    (a) Adjustment Authority.--Subject to subsection (e), the Secretary 
may make appropriate adjustments in the loan rates for any loan 
commodity (other than cotton) for differences in grade, type, quality, 
location, and other factors.
    (b) Manner of Adjustment.--The adjustments under subsection (a) 
shall, to the maximum extent practicable, be made in such a manner that 
the average loan level for the commodity will, on the basis of the 
anticipated incidence of the factors, be equal to the level of support 
determined in accordance with this subtitle and subtitles B through E.
    (c) Adjustment on County Basis.--
            (1) In general.--The Secretary may establish loan rates for 
        a crop for producers in individual counties in a manner that 
        results in the lowest loan rate being 95 percent of the 
        national average loan rate, if those loan rates do not result 
        in an increase in outlays.
            (2) Prohibition.--Adjustments under this subsection shall 
        not result in an increase in the national average loan rate for 
        any year.
    (d) Adjustment in Loan Rate for Cotton.--
            (1) In general.--The Secretary may make appropriate 
        adjustments in the loan rate for cotton for differences in 
        quality factors.
            (2) Revisions to quality adjustments for upland cotton.--
                    (A) In general.--Not later than 180 days after the 
                date of enactment of this Act, the Secretary shall 
                implement revisions in the administration of the 
                marketing assistance loan program for upland cotton to 
                more accurately and efficiently reflect market values 
                for upland cotton.
                    (B) Mandatory revisions.--Revisions under 
                subparagraph (A) shall include--
                            (i) the elimination of warehouse location 
                        differentials;
                            (ii) the establishment of differentials for 
                        the various quality factors and staple lengths 
                        of cotton based on a 3-year, weighted moving 
                        average of the weighted designated spot market 
                        regions, as determined by regional production;
                            (iii) the elimination of any artificial 
                        split in the premium or discount between upland 
                        cotton with a 32 or 33 staple length due to 
                        micronaire; and
                            (iv) a mechanism to ensure that no premium 
                        or discount is established that exceeds the 
                        premium or discount associated with a leaf 
                        grade that is 1 better than the applicable 
                        color grade.
                    (C) Discretionary revisions.--Revisions under 
                subparagraph (A) may include--
                            (i) the use of non-spot market price data, 
                        in addition to spot market price data, that 
                        would enhance the accuracy of the price 
                        information used in determining quality 
                        adjustments under this subsection;
                            (ii) adjustments in the premiums or 
                        discounts associated with upland cotton with a 
                        staple length of 33 or above due to micronaire 
                        with the goal of eliminating any unnecessary 
                        artificial splits in the calculations of the 
                        premiums or discounts; and
                            (iii) such other adjustments as the 
                        Secretary determines appropriate, after 
                        consultations conducted in accordance with 
                        paragraph (3).
            (3) Consultation with private sector.--
                    (A) Prior to revision.--In making adjustments to 
                the loan rate for cotton (including any review of the 
                adjustments) as provided in this subsection, the 
                Secretary shall consult with representatives of the 
                United States cotton industry.
                    (B) Inapplicability of federal advisory committee 
                act.--The Federal Advisory Committee Act (5 U.S.C. 
                App.) shall not apply to consultations under this 
                subsection.
            (4) Review of adjustments.--The Secretary may review the 
        operation of the upland cotton quality adjustments implemented 
        pursuant to this subsection and may make further revisions to 
        the administration of the loan program for upland cotton, by--
                    (A) revoking or revising any actions taken under 
                paragraph (2)(B); or
                    (B) revoking or revising any actions taken or 
                authorized to be taken under paragraph (2)(C).
    (e) Rice.--The Secretary shall not make adjustments in the loan 
rates for long grain rice and medium grain rice, except for differences 
in grade and quality (including milling yields).

                          Subtitle C--Peanuts

SEC. 1301. DEFINITIONS.

    In this subtitle:
            (1) Base acres for peanuts.--
                    (A) In general.--The term ``base acres for 
                peanuts'' means the number of acres assigned to a farm 
                pursuant to section 1302 of the Farm Security and Rural 
                Investment Act of 2002 (7 U.S.C. 7952), as in effect on 
                September 30, 2007, subject to any adjustment under 
                section 1302 of this Act.
                    (B) Covered commodities.--The term ``base acres'', 
                with respect to a covered commodity, has the meaning 
                given the term in section 1101.
            (2) Counter-cyclical payment.--The term ``counter-cyclical 
        payment'' means a payment made to producers on a farm under 
        section 1304.
            (3) Direct payment.--The term ``direct payment'' means a 
        direct payment made to producers on a farm under section 1303.
            (4) Effective price.--The term ``effective price'' means 
        the price calculated by the Secretary under section 1304 for 
        peanuts to determine whether counter-cyclical payments are 
        required to be made under that section for a crop year.
            (5) Payment acres.--The term ``payment acres'' means, in 
        the case of direct payments and counter-cyclical payments--
                    (A) except as provided in subparagraph (B), 85 
                percent of the base acres of peanuts on a farm on which 
                direct payments or counter-cyclical payments are made; 
                and
                    (B) in the case of direct payments for each of the 
                2009 through 2011 crop years, 83.3 percent of the base 
                acres for peanuts on a farm on which direct payments 
                are made.
            (6) Payment yield.--The term ``payment yield'' means the 
        yield established for direct payments and the yield established 
        for counter-cyclical payments under section 1302 of the Farm 
        Security and Rural Investment Act of 2002 (7 U.S.C. 7952), as 
        in effect on September 30, 2007, for a farm for peanuts.
            (7) Producer.--
                    (A) In general.--The term ``producer'' means an 
                owner, operator, landlord, tenant, or sharecropper that 
                shares in the risk of producing a crop on a farm and is 
                entitled to share in the crop available for marketing 
                from the farm, or would have shared had the crop been 
                produced.
                    (B) Hybrid seed.--In determining whether a grower 
                of hybrid seed is a producer, the Secretary shall--
                            (i) not take into consideration the 
                        existence of a hybrid seed contract; and
                            (ii) ensure that program requirements do 
                        not adversely affect the ability of the grower 
                        to receive a payment under this subtitle.
            (8) State.--The term ``State'' means--
                    (A) a State;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico; and
                    (D) any other territory or possession of the United 
                States.
            (9) Target price.--The term ``target price'' means the 
        price per ton of peanuts used to determine the payment rate for 
        counter-cyclical payments.
            (10) United states.--The term ``United States'', when used 
        in a geographical sense, means all of the States.

SEC. 1302. BASE ACRES FOR PEANUTS FOR A FARM.

    (a) Adjustment of Base Acreage for Peanuts.--
            (1) In general.--The Secretary shall provide for an 
        adjustment, as appropriate, in the base acres for peanuts for a 
        farm whenever any of the following circumstances occur:
                    (A) A conservation reserve contract entered into 
                under section 1231 of the Food Security Act of 1985 (16 
                U.S.C. 3831) with respect to the farm expires or is 
                voluntarily terminated, or was terminated or expired 
                during the period beginning on October 1, 2007, and 
                ending on the date of enactment of this Act.
                    (B) Cropland is released from coverage under a 
                conservation reserve contract by the Secretary, or was 
                released during the period beginning on October 1, 
                2007, and ending on the date of enactment of this Act.
                    (C) The producer has eligible pulse crop acreage, 
                which shall be determined in the same manner as 
                eligible oilseed acreage under section 1101(a)(2) of 
                the Farm Security and Rural Investment Act of 2002 (7 
                U.S.C. 7911(a)(2)).
                    (D) The producer has eligible oilseed acreage as 
                the result of the Secretary designating additional 
                oilseeds, which shall be determined in the same manner 
                as eligible oilseed acreage under section 1101(a)(2) of 
                the Farm Security and Rural Investment Act of 2002 (7 
                U.S.C. 7911(a)(2)).
            (2) Special conservation reserve acreage payment rules.--
        For the crop year in which a base acres for peanuts adjustment 
        under subparagraph (A) or (B) of paragraph (1) is first made, 
        the owner of the farm shall elect to receive either direct 
        payments and counter-cyclical payments with respect to the 
        acreage added to the farm under this subsection or a prorated 
        payment under the conservation reserve contract, but not both.
    (b) Prevention of Excess Base Acres for Peanuts.--
            (1) Required reduction.--If the sum of the base acres for 
        peanuts for a farm, together with the acreage described in 
        paragraph (2), exceeds the actual cropland acreage of the farm, 
        the Secretary shall reduce the base acres for peanuts for the 
        farm or the base acres for 1 or more covered commodities for 
        the farm so that the sum of the base acres for peanuts and 
        acreage described in paragraph (2) does not exceed the actual 
        cropland acreage of the farm.
            (2) Other acreage.--For purposes of paragraph (1), the 
        Secretary shall include the following:
                    (A) Any base acres for the farm for a covered 
                commodity.
                    (B) Any acreage on the farm enrolled in the 
                conservation reserve program or wetlands reserve 
                program under chapter 1 of subtitle D of title XII of 
                the Food Security Act of 1985 (16 U.S.C. 3830 et seq.).
                    (C) Any other acreage on the farm enrolled in a 
                Federal conservation program for which payments are 
                made in exchange for not producing an agricultural 
                commodity on the acreage.
                    (D) Any eligible pulse crop acreage, which shall be 
                determined in the same manner as eligible oilseed 
                acreage under section 1101(a)(2) of the Farm Security 
                and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
                    (E) If the Secretary designates additional 
                oilseeds, any eligible oilseed acreage, which shall be 
                determined in the same manner as eligible oilseed 
                acreage under section 1101(a)(2) of the Farm Security 
                and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
            (3) Selection of acres.--The Secretary shall give the owner 
        of the farm the opportunity to select the base acres for 
        peanuts or the base acres for covered commodities against which 
        the reduction required by paragraph (1) will be made.
            (4) Exception for double-cropped acreage.--In applying 
        paragraph (1), the Secretary shall make an exception in the 
        case of double cropping, as determined by the Secretary.
            (5) Coordinated application of requirements.--The Secretary 
        shall take into account section 1101(b) when applying the 
        requirements of this subsection.
    (c) Reduction in Base Acres.--
            (1) Reduction at option of owner.--
                    (A) In general.--The owner of a farm may reduce, at 
                any time, the base acres for peanuts for the farm.
                    (B) Effect of reduction.--A reduction under 
                subparagraph (A) shall be permanent and made in a 
                manner prescribed by the Secretary.
            (2) Required action by secretary.--
                    (A) In general.--The Secretary shall 
                proportionately reduce base acres on a farm for peanuts 
                for land that has been subdivided and developed for 
                multiple residential units or other nonfarming uses if 
                the size of the tracts and the density of the 
                subdivision is such that the land is unlikely to return 
                to the previous agricultural use, unless the producers 
                on the farm demonstrate that the land--
                            (i) remains devoted to commercial 
                        agricultural production; or
                            (ii) is likely to be returned to the 
                        previous agricultural use.
                    (B) Requirement.--The Secretary shall establish 
                procedures to identify land described in subparagraph 
                (A).
            (3) Review and report.--Each year, to ensure, to the 
        maximum extent practicable, that payments are received only by 
        producers, the Secretary shall submit to Congress a report that 
        describes the results of the actions taken under paragraph (2).
    (d) Treatment of Farms With Limited Base Acres.--
            (1) Prohibition on payments.--Except as provided in 
        paragraph (2) and notwithstanding any other provision of this 
        title, a producer on a farm may not receive direct payments, 
        counter-cyclical payments, or average crop revenue election 
        payments if the sum of the base acres of the farm is 10 acres 
        or less, as determined by the Secretary.
            (2) Exceptions.--Paragraph (1) shall not apply to a farm 
        owned by--
                    (A) a socially disadvantaged farmer or rancher (as 
                defined in section 355(e) of the Consolidated Farm and 
                Rural Development Act (7 U.S.C. 2003(e)); or
                    (B) a limited resource farmer or rancher, as 
                defined by the Secretary.
            (3) Data collection and publication.--The Secretary shall--
                    (A) collect and publish segregated data and survey 
                information about the farm profiles, utilization of 
                land, and crop production; and
                    (B) perform an evaluation on the supply and price 
                of fruits and vegetables based on the effects of 
                suspension of base acres under this section.

SEC. 1303. AVAILABILITY OF DIRECT PAYMENTS FOR PEANUTS.

    (a) Payment Required.--For each of the 2008 through 2012 crop years 
for peanuts, the Secretary shall make direct payments to the producers 
on a farm for which a payment yield and base acres for peanuts are 
established.
    (b) Payment Rate.--Except as provided in section 1105, the payment 
rate used to make direct payments with respect to peanuts for a crop 
year shall be equal to $36 per ton.
    (c) Payment Amount.--The amount of the direct payment to be paid to 
the producers on a farm for peanuts for a crop year shall be equal to 
the product of the following:
            (1) The payment rate specified in subsection (b).
            (2) The payment acres on the farm.
            (3) The payment yield for the farm.
    (d) Time for Payment.--
            (1) In general.--Except as provided in paragraph (2), in 
        the case of each of the 2008 through 2012 crop years, the 
        Secretary may not make direct payments under this section 
        before October 1 of the calendar year in which the crop is 
        harvested.
            (2) Advance payments.--
                    (A) Option.--
                            (i) In general.--At the option of the 
                        producers on a farm, the Secretary shall pay in 
                        advance up to 22 percent of the direct payment 
                        for peanuts for any of the 2008 through 2011 
                        crop years to the producers on a farm.
                            (ii) 2008 crop year.--If the producers on a 
                        farm elect to receive advance direct payments 
                        under clause (i) for peanuts for the 2008 crop 
                        year, as soon as practicable after the 
                        election, the Secretary shall make the advance 
                        direct payment to the producers on the farm.
                    (B) Month.--
                            (i) Selection.--Subject to clauses (ii) and 
                        (iii), the producers on a farm shall select the 
                        month during which the advance payment for a 
                        crop year will be made.
                            (ii) Options.--The month selected may be 
                        any month during the period--
                                    (I) beginning on December 1 of the 
                                calendar year before the calendar year 
                                in which the crop of peanuts is 
                                harvested; and
                                    (II) ending during the month within 
                                which the direct payment would 
                                otherwise be made.
                            (iii) Change.--The producers on a farm may 
                        change the selected month for a subsequent 
                        advance payment by providing advance notice to 
                        the Secretary.
            (3) Repayment of advance payments.--If a producer on a farm 
        that receives an advance direct payment for a crop year ceases 
        to be a producer on that farm, or the extent to which the 
        producer shares in the risk of producing a crop changes, before 
        the date the remainder of the direct payment is made, the 
        producer shall be responsible for repaying the Secretary the 
        applicable amount of the advance payment, as determined by the 
        Secretary.

SEC. 1304. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS FOR PEANUTS.

    (a) Payment Required.--Except as provided in section 1105, for each 
of the 2008 through 2012 crop years for peanuts, the Secretary shall 
make counter-cyclical payments to producers on farms for which payment 
yields and base acres for peanuts are established if the Secretary 
determines that the effective price for peanuts is less than the target 
price for peanuts.
    (b) Effective Price.--For purposes of subsection (a), the effective 
price for peanuts is equal to the sum of the following:
            (1) The higher of the following:
                    (A) The national average market price for peanuts 
                received by producers during the 12-month marketing 
                year for peanuts, as determined by the Secretary.
                    (B) The national average loan rate for a marketing 
                assistance loan for peanuts in effect for the 
                applicable period under this subtitle.
            (2) The payment rate in effect for peanuts under section 
        1303 for the purpose of making direct payments.
    (c) Target Price.--For purposes of subsection (a), the target price 
for peanuts shall be equal to $495 per ton.
    (d) Payment Rate.--The payment rate used to make counter-cyclical 
payments for a crop year shall be equal to the difference between--
            (1) the target price for peanuts; and
            (2) the effective price determined under subsection (b) for 
        peanuts.
    (e) Payment Amount.--If counter-cyclical payments are required to 
be paid for any of the 2008 through 2012 crops of peanuts, the amount 
of the counter-cyclical payment to be paid to the producers on a farm 
for that crop year shall be equal to the product of the following:
            (1) The payment rate specified in subsection (d).
            (2) The payment acres on the farm.
            (3) The payment yield for the farm.
    (f) Time for Payments.--
            (1) General rule.--Except as provided in paragraph (2), if 
        the Secretary determines under subsection (a) that counter-
        cyclical payments are required to be made under this section 
        for a crop of peanuts, beginning October 1, or as soon as 
        practicable after the end of the marketing year, the Secretary 
        shall make the counter-cyclical payments for the crop.
            (2) Availability of partial payments.--
                    (A) In general.--If, before the end of the 12-month 
                marketing year, the Secretary estimates that counter-
                cyclical payments will be required under this section 
                for a crop year, the Secretary shall give producers on 
                a farm the option to receive partial payments of the 
                counter-cyclical payment projected to be made for the 
                crop.
                    (B) Election.--
                            (i) In general.--The Secretary shall allow 
                        producers on a farm to make an election to 
                        receive partial payments under subparagraph (A) 
                        at any time but not later than 60 days prior to 
                        the end of the marketing year for the crop.
                            (ii) Date of issuance.--The Secretary shall 
                        issue the partial payment after the date of an 
                        announcement by the Secretary but not later 
                        than 30 days prior to the end of the marketing 
                        year.
            (3) Time for partial payments.--When the Secretary makes 
        partial payments for any of the 2008 through 2010 crop years--
                    (A) the first partial payment shall be made after 
                completion of the first 180 days of the marketing year 
                for that crop; and
                    (B) the final partial payment shall be made 
                beginning October 1, or as soon as practicable 
                thereafter, after the end of the applicable marketing 
                year for that crop.
            (4) Amount of partial payments.--
                    (A) First partial payment.--For each of the 2008 
                through 2010 crop years, the first partial payment 
                under paragraph (3) to the producers on a farm may not 
                exceed 40 percent of the projected counter-cyclical 
                payment for the crop year, as determined by the 
                Secretary.
                    (B) Final payment.--The final payment for a crop 
                year shall be equal to the difference between--
                            (i) the actual counter-cyclical payment to 
                        be made to the producers for that crop year; 
                        and
                            (ii) the amount of the partial payment made 
                        to the producers under subparagraph (A).
            (5) Repayment.--The producers on a farm that receive a 
        partial payment under this subsection for a crop year shall 
        repay to the Secretary the amount, if any, by which the total 
        of the partial payments exceed the actual counter-cyclical 
        payment to be made for that crop year.

SEC. 1305. PRODUCER AGREEMENT REQUIRED AS CONDITION ON PROVISION OF 
              PAYMENTS.

    (a) Compliance With Certain Requirements.--
            (1) Requirements.--Before the producers on a farm may 
        receive direct payments or counter-cyclical payments under this 
        subtitle, or average crop revenue election payments under 
        section 1105, with respect to the farm, the producers shall 
        agree, during the crop year for which the payments are made and 
        in exchange for the payments--
                    (A) to comply with applicable conservation 
                requirements under subtitle B of title XII of the Food 
                Security Act of 1985 (16 U.S.C. 3811 et seq.);
                    (B) to comply with applicable wetland protection 
                requirements under subtitle C of title XII of that Act 
                (16 U.S.C. 3821 et seq.);
                    (C) to comply with the planting flexibility 
                requirements of section 1306;
                    (D) to use the land on the farm, in a quantity 
                equal to the attributable base acres for peanuts and 
                any base acres for the farm under subtitle A, for an 
                agricultural or conserving use, and not for a 
                nonagricultural commercial, industrial, or residential 
                use, as determined by the Secretary; and
                    (E) to effectively control noxious weeds and 
                otherwise maintain the land in accordance with sound 
                agricultural practices, as determined by the Secretary, 
                if the agricultural or conserving use involves the 
                noncultivation of any portion of the land referred to 
                in subparagraph (D).
            (2) Compliance.--The Secretary may issue such rules as the 
        Secretary considers necessary to ensure producer compliance 
        with the requirements of paragraph (1).
            (3) Modification.--At the request of the transferee or 
        owner, the Secretary may modify the requirements of this 
        subsection if the modifications are consistent with the 
        objectives of this subsection, as determined by the Secretary.
    (b) Transfer or Change of Interest in Farm.--
            (1) Termination.--
                    (A) In general.--Except as provided in paragraph 
                (2), a transfer of (or change in) the interest of the 
                producers on a farm in the base acres for peanuts for 
                which direct payments or counter-cyclical payments are 
                made, or on which average crop revenue election 
                payments are based, shall result in the termination of 
                the direct payments, counter-cyclical payments, or 
                average crop revenue election payments to the extent 
                the payments are made or based on the base acres, 
                unless the transferee or owner of the acreage agrees to 
                assume all obligations under subsection (a).
                    (B) Effective date.--The termination shall take 
                effect on the date determined by the Secretary.
            (2) Exception.--If a producer entitled to a direct payment, 
        counter-cyclical payment, or average crop revenue election 
        payment dies, becomes incompetent, or is otherwise unable to 
        receive the payment, the Secretary shall make the payment, in 
        accordance with rules issued by the Secretary.
    (c) Acreage Reports.--
            (1) In general.--As a condition on the receipt of any 
        benefits under this subtitle, the Secretary shall require 
        producers on a farm to submit to the Secretary annual acreage 
        reports with respect to all cropland on the farm.
            (2) Penalties.--No penalty with respect to benefits under 
        this subtitle shall be assessed against the producers on a farm 
        for an inaccurate acreage report unless the producers on the 
        farm knowingly and willfully falsified the acreage report.
    (d) Tenants and Sharecroppers.--In carrying out this subtitle, the 
Secretary shall provide adequate safeguards to protect the interests of 
tenants and sharecroppers.
    (e) Sharing of Payments.--The Secretary shall provide for the 
sharing of direct payments, counter-cyclical payments, or average crop 
revenue election payments under section 1105 among the producers on a 
farm on a fair and equitable basis.

SEC. 1306. PLANTING FLEXIBILITY.

    (a) Permitted Crops.--Subject to subsection (b), any commodity or 
crop may be planted on the base acres for peanuts on a farm.
    (b) Limitations Regarding Certain Commodities.--
            (1) General limitation.--The planting of an agricultural 
        commodity specified in paragraph (3) shall be prohibited on 
        base acres for peanuts unless the commodity, if planted, is 
        destroyed before harvest.
            (2) Treatment of trees and other perennials.--The planting 
        of an agricultural commodity specified in paragraph (3) that is 
        produced on a tree or other perennial plant shall be prohibited 
        on base acres for peanuts.
            (3) Covered agricultural commodities.--Paragraphs (1) and 
        (2) apply to the following agricultural commodities:
                    (A) Fruits.
                    (B) Vegetables (other than mung beans and pulse 
                crops).
                    (C) Wild rice.
    (c) Exceptions.--Paragraphs (1) and (2) of subsection (b) shall not 
limit the planting of an agricultural commodity specified in paragraph 
(3) of that subsection--
            (1) in any region in which there is a history of double-
        cropping of peanuts with agricultural commodities specified in 
        subsection (b)(3), as determined by the Secretary, in which 
        case the double-cropping shall be permitted;
            (2) on a farm that the Secretary determines has a history 
        of planting agricultural commodities specified in subsection 
        (b)(3) on the base acres for peanuts, except that direct 
        payments and counter-cyclical payments shall be reduced by an 
        acre for each acre planted to such an agricultural commodity; 
        or
            (3) by the producers on a farm that the Secretary 
        determines has an established planting history of a specific 
        agricultural commodity specified in subsection (b)(3), except 
        that--
                    (A) the quantity planted may not exceed the average 
                annual planting history of such agricultural commodity 
                by the producers on the farm in the 1991 through 1995 
                or 1998 through 2001 crop years (excluding any crop 
                year in which no plantings were made), as determined by 
                the Secretary; and
                    (B) direct payments and counter-cyclical payments 
                shall be reduced by an acre for each acre planted to 
                such agricultural commodity.

SEC. 1307. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS FOR 
              PEANUTS.

    (a) Nonrecourse Loans Available.--
            (1) Availability.--For each of the 2008 through 2012 crops 
        of peanuts, the Secretary shall make available to producers on 
        a farm nonrecourse marketing assistance loans for peanuts 
        produced on the farm.
            (2) Terms and conditions.--The loans shall be made under 
        terms and conditions that are prescribed by the Secretary and 
        at the loan rate established under subsection (b).
            (3) Eligible production.--The producers on a farm shall be 
        eligible for a marketing assistance loan under this subsection 
        for any quantity of peanuts produced on the farm.
            (4) Options for obtaining loan.--A marketing assistance 
        loan under this subsection, and loan deficiency payments under 
        subsection (e), may be obtained at the option of the producers 
        on a farm through--
                    (A) a designated marketing association or marketing 
                cooperative of producers that is approved by the 
                Secretary; or
                    (B) the Farm Service Agency.
            (5) Storage of loan peanuts.--As a condition on the 
        Secretary's approval of an individual or entity to provide 
        storage for peanuts for which a marketing assistance loan is 
        made under this section, the individual or entity shall agree--
                    (A) to provide such storage on a nondiscriminatory 
                basis; and
                    (B) to comply with such additional requirements as 
                the Secretary considers appropriate to accomplish the 
                purposes of this section and promote fairness in the 
                administration of the benefits of this section.
            (6) Storage, handling, and associated costs.--
                    (A) In general.--Beginning with the 2008 crop of 
                peanuts, to ensure proper storage of peanuts for which 
                a loan is made under this section, the Secretary shall 
                pay handling and other associated costs (other than 
                storage costs) incurred at the time at which the 
                peanuts are placed under loan, as determined by the 
                Secretary.
                    (B) Redemption and forfeiture.--The Secretary 
                shall--
                            (i) require the repayment of handling and 
                        other associated costs paid under subparagraph 
                        (A) for all peanuts pledged as collateral for a 
                        loan that is redeemed under this section; and
                            (ii) pay storage, handling, and other 
                        associated costs for all peanuts pledged as 
                        collateral that are forfeited under this 
                        section.
            (7) Marketing.--A marketing association or cooperative may 
        market peanuts for which a loan is made under this section in 
        any manner that conforms to consumer needs, including the 
        separation of peanuts by type and quality.
    (b) Loan Rate.--Except as provided in section 1105, the loan rate 
for a marketing assistance loan for peanuts under subsection (a) shall 
be equal to $355 per ton.
    (c) Term of Loan.--
            (1) In general.--A marketing assistance loan for peanuts 
        under subsection (a) shall have a term of 9 months beginning on 
        the first day of the first month after the month in which the 
        loan is made.
            (2) Extensions prohibited.--The Secretary may not extend 
        the term of a marketing assistance loan for peanuts under 
        subsection (a).
    (d) Repayment Rate.--
            (1) In general.--The Secretary shall permit producers on a 
        farm to repay a marketing assistance loan for peanuts under 
        subsection (a) at a rate that is the lesser of--
                    (A) the loan rate established for peanuts under 
                subsection (b), plus interest (determined in accordance 
                with section 163 of the Federal Agriculture Improvement 
                and Reform Act of 1996 (7 U.S.C. 7283)); or
                    (B) a rate that the Secretary determines will--
                            (i) minimize potential loan forfeitures;
                            (ii) minimize the accumulation of stocks of 
                        peanuts by the Federal Government;
                            (iii) minimize the cost incurred by the 
                        Federal Government in storing peanuts; and
                            (iv) allow peanuts produced in the United 
                        States to be marketed freely and competitively, 
                        both domestically and internationally.
            (2) Authority to temporarily adjust repayment rates.--
                    (A) Adjustment authority.--In the event of a severe 
                disruption to marketing, transportation, or related 
                infrastructure, the Secretary may modify the repayment 
                rate otherwise applicable under this subsection for 
                marketing assistance loans for peanuts under subsection 
                (a).
                    (B) Duration.--An adjustment made under 
                subparagraph (A) in the repayment rate for marketing 
                assistance loans for peanuts shall be in effect on a 
                short-term and temporary basis, as determined by the 
                Secretary.
    (e) Loan Deficiency Payments.--
            (1) Availability.--The Secretary may make loan deficiency 
        payments available to producers on a farm that, although 
        eligible to obtain a marketing assistance loan for peanuts 
        under subsection (a), agree to forgo obtaining the loan for the 
        peanuts in return for loan deficiency payments under this 
        subsection.
            (2) Computation.--A loan deficiency payment under this 
        subsection shall be computed by multiplying--
                    (A) the payment rate determined under paragraph (3) 
                for peanuts; by
                    (B) the quantity of the peanuts produced by the 
                producers, excluding any quantity for which the 
                producers obtain a marketing assistance loan under 
                subsection (a).
            (3) Payment rate.--For purposes of this subsection, the 
        payment rate shall be the amount by which--
                    (A) the loan rate established under subsection (b); 
                exceeds
                    (B) the rate at which a loan may be repaid under 
                subsection (d).
            (4) Effective date for payment rate determination.--The 
        Secretary shall determine the amount of the loan deficiency 
        payment to be made under this subsection to the producers on a 
        farm with respect to a quantity of peanuts using the payment 
        rate in effect under paragraph (3) as of the date the producers 
        request the payment.
    (f) Compliance With Conservation and Wetlands Requirements.--As a 
condition of the receipt of a marketing assistance loan under 
subsection (a), the producer shall comply with applicable conservation 
requirements under subtitle B of title XII of the Food Security Act of 
1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection 
requirements under subtitle C of title XII of that Act (16 U.S.C. 3821 
et seq.) during the term of the loan.
    (g) Reimbursable Agreements and Payment of Administrative 
Expenses.--The Secretary may implement any reimbursable agreements or 
provide for the payment of administrative expenses under this subtitle 
only in a manner that is consistent with such activities in regard to 
other commodities.

SEC. 1308. ADJUSTMENTS OF LOANS.

    (a) Adjustment Authority.--The Secretary may make appropriate 
adjustments in the loan rates for peanuts for differences in grade, 
type, quality, location, and other factors.
    (b) Manner of Adjustment.--The adjustments under subsection (a) 
shall, to the maximum extent practicable, be made in such a manner that 
the average loan level for peanuts will, on the basis of the 
anticipated incidence of the factors, be equal to the level of support 
determined in accordance with this subtitle and subtitles B, D, and E.
    (c) Adjustment on County Basis.--
            (1) In general.--Subject to paragraph (2), the Secretary 
        may establish loan rates for a crop of peanuts for producers in 
        individual counties in a manner that results in the lowest loan 
        rate being 95 percent of the national average loan rate, if 
        those loan rates do not result in an increase in outlays.
            (2) Prohibition.--Adjustments under this subsection shall 
        not result in an increase in the national average loan rate for 
        any year.

                           Subtitle D--Sugar

SEC. 1401. SUGAR PROGRAM.

    (a) In General.--Section 156 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7272) is amended to read as follows:

``SEC. 156. SUGAR PROGRAM.

    ``(a) Sugarcane.--The Secretary shall make loans available to 
processors of domestically grown sugarcane at a rate equal to--
            ``(1) 18.00 cents per pound for raw cane sugar for the 2008 
        crop year;
            ``(2) 18.25 cents per pound for raw cane sugar for the 2009 
        crop year;
            ``(3) 18.50 cents per pound for raw cane sugar for the 2010 
        crop year;
            ``(4) 18.75 cents per pound for raw cane sugar for the 2011 
        crop year; and
            ``(5) 18.75 cents per pound for raw cane sugar for the 2012 
        crop year.
    ``(b) Sugar Beets.--The Secretary shall make loans available to 
processors of domestically grown sugar beets at a rate equal to--
            ``(1) 22.9 cents per pound for refined beet sugar for the 
        2008 crop year; and
            ``(2) a rate that is equal to 128.5 percent of the loan 
        rate per pound of raw cane sugar for the applicable crop year 
        under subsection (a) for each of the 2009 through 2012 crop 
        years.
    ``(c) Term of Loans.--
            ``(1) In general.--A loan under this section during any 
        fiscal year shall be made available not earlier than the 
        beginning of the fiscal year and shall mature at the earlier 
        of--
                    ``(A) the end of the 9-month period beginning on 
                the first day of the first month after the month in 
                which the loan is made; or
                    ``(B) the end of the fiscal year in which the loan 
                is made.
            ``(2) Supplemental loans.--In the case of a loan made under 
        this section in the last 3 months of a fiscal year, the 
        processor may repledge the sugar as collateral for a second 
        loan in the subsequent fiscal year, except that the second loan 
        shall--
                    ``(A) be made at the loan rate in effect at the 
                time the first loan was made; and
                    ``(B) mature in 9 months less the quantity of time 
                that the first loan was in effect.
    ``(d) Loan Type; Processor Assurances.--
            ``(1) Nonrecourse loans.--The Secretary shall carry out 
        this section through the use of nonrecourse loans.
            ``(2) Processor assurances.--
                    ``(A) In general.--The Secretary shall obtain from 
                each processor that receives a loan under this section 
                such assurances as the Secretary considers adequate to 
                ensure that the processor will provide payments to 
                producers that are proportional to the value of the 
                loan received by the processor for the sugar beets and 
                sugarcane delivered by producers to the processor.
                    ``(B) Minimum payments.--
                            ``(i) In general.--Subject to clause (ii), 
                        the Secretary may establish appropriate minimum 
                        payments for purposes of this paragraph.
                            ``(ii) Limitation.--In the case of sugar 
                        beets, the minimum payment established under 
                        clause (i) shall not exceed the rate of payment 
                        provided for under the applicable contract 
                        between a sugar beet producer and a sugar beet 
                        processor.
            ``(3) Administration.--The Secretary may not impose or 
        enforce any prenotification requirement, or similar 
        administrative requirement not otherwise in effect on May 13, 
        2002, that has the effect of preventing a processor from 
        electing to forfeit the loan collateral (of an acceptable grade 
        and quality) on the maturity of the loan.
    ``(e) Loans for In-Process Sugar.--
            ``(1) Definition of in-process sugars and syrups.--In this 
        subsection, the term `in-process sugars and syrups' does not 
        include raw sugar, liquid sugar, invert sugar, invert syrup, or 
        other finished product that is otherwise eligible for a loan 
        under subsection (a) or (b).
            ``(2) Availability.--The Secretary shall make nonrecourse 
        loans available to processors of a crop of domestically grown 
        sugarcane and sugar beets for in-process sugars and syrups 
        derived from the crop.
            ``(3) Loan rate.--The loan rate shall be equal to 80 
        percent of the loan rate applicable to raw cane sugar or 
        refined beet sugar, as determined by the Secretary on the basis 
        of the source material for the in-process sugars and syrups.
            ``(4) Further processing on forfeiture.--
                    ``(A) In general.--As a condition of the forfeiture 
                of in-process sugars and syrups serving as collateral 
                for a loan under paragraph (2), the processor shall, 
                within such reasonable time period as the Secretary may 
                prescribe and at no cost to the Commodity Credit 
                Corporation, convert the in-process sugars and syrups 
                into raw cane sugar or refined beet sugar of acceptable 
                grade and quality for sugars eligible for loans under 
                subsection (a) or (b).
                    ``(B) Transfer to corporation.--Once the in-process 
                sugars and syrups are fully processed into raw cane 
                sugar or refined beet sugar, the processor shall 
                transfer the sugar to the Commodity Credit Corporation.
                    ``(C) Payment to processor.--On transfer of the 
                sugar, the Secretary shall make a payment to the 
                processor in an amount equal to the amount obtained by 
                multiplying--
                            ``(i) the difference between--
                                    ``(I) the loan rate for raw cane 
                                sugar or refined beet sugar, as 
                                appropriate; and
                                    ``(II) the loan rate the processor 
                                received under paragraph (3); by
                            ``(ii) the quantity of sugar transferred to 
                        the Secretary.
            ``(5) Loan conversion.--If the processor does not forfeit 
        the collateral as described in paragraph (4), but instead 
        further processes the in-process sugars and syrups into raw 
        cane sugar or refined beet sugar and repays the loan on the in-
        process sugars and syrups, the processor may obtain a loan 
        under subsection (a) or (b) for the raw cane sugar or refined 
        beet sugar, as appropriate.
            ``(6) Term of loan.--The term of a loan made under this 
        subsection for a quantity of in-process sugars and syrups, when 
        combined with the term of a loan made with respect to the raw 
        cane sugar or refined beet sugar derived from the in-process 
        sugars and syrups, may not exceed 9 months, consistent with 
        subsection (c).
    ``(f) Avoiding Forfeitures; Corporation Inventory Disposition.--
            ``(1) In general.--Subject to subsection (d)(3), to the 
        maximum extent practicable, the Secretary shall operate the 
        program established under this section at no cost to the 
        Federal Government by avoiding the forfeiture of sugar to the 
        Commodity Credit Corporation.
            ``(2) Inventory disposition.--
                    ``(A) In general.--To carry out paragraph (1), the 
                Commodity Credit Corporation may accept bids to obtain 
                raw cane sugar or refined beet sugar in the inventory 
                of the Commodity Credit Corporation from (or otherwise 
                make available such commodities, on appropriate terms 
                and conditions, to) processors of sugarcane and 
                processors of sugar beets (acting in conjunction with 
                the producers of the sugarcane or sugar beets processed 
                by the processors) in return for the reduction of 
                production of raw cane sugar or refined beet sugar, as 
                appropriate.
                    ``(B) Bioenergy feedstock.--If a reduction in the 
                quantity of production accepted under subparagraph (A) 
                involves sugar beets or sugarcane that has already been 
                planted, the sugar beets or sugarcane so planted may 
                not be used for any commercial purpose other than as a 
                bioenergy feedstock.
                    ``(C) Additional authority.--The authority provided 
                under this paragraph is in addition to any authority of 
                the Commodity Credit Corporation under any other law.
    ``(g) Information Reporting.--
            ``(1) Duty of processors and refiners to report.--A 
        sugarcane processor, cane sugar refiner, and sugar beet 
        processor shall furnish the Secretary, on a monthly basis, such 
        information as the Secretary may require to administer sugar 
        programs, including the quantity of purchases of sugarcane, 
        sugar beets, and sugar, and production, importation, 
        distribution, and stock levels of sugar.
            ``(2) Duty of producers to report.--
                    ``(A) Proportionate share states.--As a condition 
                of a loan made to a processor for the benefit of a 
                producer, the Secretary shall require each producer of 
                sugarcane located in a State (other than the 
                Commonwealth of Puerto Rico) in which there are in 
                excess of 250 producers of sugarcane to report, in the 
                manner prescribed by the Secretary, the sugarcane 
                yields and acres planted to sugarcane of the producer.
                    ``(B) Other states.--The Secretary may require each 
                producer of sugarcane or sugar beets not covered by 
                subparagraph (A) to report, in a manner prescribed by 
                the Secretary, the yields of, and acres planted to, 
                sugarcane or sugar beets, respectively, of the 
                producer.
            ``(3) Duty of importers to report.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall require an 
                importer of sugars, syrups, or molasses to be used for 
                human consumption or to be used for the extraction of 
                sugar for human consumption to report, in the manner 
                prescribed by the Secretary, the quantities of the 
                products imported by the importer and the sugar content 
                or equivalent of the products.
                    ``(B) Tariff-rate quotas.--Subparagraph (A) shall 
                not apply to sugars, syrups, or molasses that are 
                within the quantities of tariff-rate quotas that are 
                subject to the lower rate of duties.
            ``(4) Collection of information on mexico.--
                    ``(A) Collection.--The Secretary shall collect--
                            ``(i) information on the production, 
                        consumption, stocks, and trade of sugar in 
                        Mexico, including United States exports of 
                        sugar to Mexico; and
                            ``(ii) publicly available information on 
                        Mexican production, consumption, and trade of 
                        high fructose corn syrups.
                    ``(B) Publication.--The data collected under 
                subparagraph (A) shall be published in each edition of 
                the World Agricultural Supply and Demand Estimates.
            ``(5) Penalty.--Any person willfully failing or refusing to 
        furnish the information required to be reported by paragraph 
        (1), (2), or (3), or furnishing willfully false information, 
        shall be subject to a civil penalty of not more than $10,000 
        for each such violation.
            ``(6) Monthly reports.--Taking into consideration the 
        information received under this subsection, the Secretary shall 
        publish on a monthly basis composite data on production, 
        imports, distribution, and stock levels of sugar.
    ``(h) Substitution of Refined Sugar.--For purposes of Additional 
U.S. Note 6 to chapter 17 of the Harmonized Tariff Schedule of the 
United States and the reexport programs and polyhydric alcohol program 
administered by the Secretary, all refined sugars (whether derived from 
sugar beets or sugarcane) produced by cane sugar refineries and beet 
sugar processors shall be fully substitutable for the export of sugar 
and sugar-containing products under those programs.
    ``(i) Effective Period.--This section shall be effective only for 
the 2008 through 2012 crops of sugar beets and sugarcane.''.
    (b) Transition.--The Secretary shall make loans for raw cane sugar 
and refined beet sugar available for the 2007 crop year on the terms 
and conditions provided in section 156 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7272), as in effect on the 
day before the date of enactment of this Act.

SEC. 1402. UNITED STATES MEMBERSHIP IN THE INTERNATIONAL SUGAR 
              ORGANIZATION.

    The Secretary shall work with the Secretary of State to restore 
United States membership in the International Sugar Organization not 
later than 1 year after the date of enactment of this Act.

SEC. 1403. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

    (a) Definitions.--Section 359a of the Agricultural Adjustment Act 
of 1938 (7 U.S.C. 1359aa) is amended--
            (1) by redesignating paragraphs (1), (2), (3), and (4) as 
        paragraphs (2), (4), (5), and (6), respectively;
            (2) by inserting before paragraph (2) (as so redesignated) 
        the following:
            ``(1) Human consumption.--The term `human consumption', 
        when used in the context of a reference to sugar (whether in 
        the form of sugar, in-process sugar, syrup, molasses, or in 
        some other form) for human consumption, includes sugar for use 
        in human food, beverages, or similar products.''; and
            (3) by inserting after paragraph (2) (as so redesignated) 
        the following:
            ``(3) Market.--
                    ``(A) In general.--The term `market' means to sell 
                or otherwise dispose of in commerce in the United 
                States.
                    ``(B) Inclusions.--The term `market' includes--
                            ``(i) the forfeiture of sugar under the 
                        loan program for sugar established under 
                        section 156 of the Federal Agriculture 
                        Improvement and Reform Act of 1996 (7 U.S.C. 
                        7272);
                            ``(ii) with respect to any integrated 
                        processor and refiner, the movement of raw cane 
                        sugar into the refining process; and
                            ``(iii) the sale of sugar for the 
                        production of ethanol or other bioenergy 
                        product, if the disposition of the sugar is 
                        administered by the Secretary under section 
                        9010 of the Farm Security and Rural Investment 
                        Act of 2002.
                    ``(C) Marketing year.--Forfeited sugar described in 
                subparagraph (B)(i) shall be considered to have been 
                marketed during the crop year for which a loan is made 
                under the loan program described in that 
                subparagraph.''.
    (b) Flexible Marketing Allotments for Sugar.--Section 359b of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb) is amended to 
read as follows:

``SEC. 359B. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

    ``(a) Sugar Estimates.--
            ``(1) In general.--Not later than August 1 before the 
        beginning of each of the 2008 through 2012 crop years for 
        sugarcane and sugar beets, the Secretary shall estimate--
                    ``(A) the quantity of sugar that will be subject to 
                human consumption in the United States during the crop 
                year;
                    ``(B) the quantity of sugar that would provide for 
                reasonable carryover stocks;
                    ``(C) the quantity of sugar that will be available 
                from carry-in stocks for human consumption in the 
                United States during the crop year;
                    ``(D) the quantity of sugar that will be available 
                from the domestic processing of sugarcane, sugar beets, 
                and in-process beet sugar; and
                    ``(E) the quantity of sugars, syrups, and molasses 
                that will be imported for human consumption or to be 
                used for the extraction of sugar for human consumption 
                in the United States during the crop year, whether the 
                articles are under a tariff-rate quota or are in excess 
                or outside of a tariff-rate quota.
            ``(2) Exclusion.--The estimates under this subsection shall 
        not apply to sugar imported for the production of polyhydric 
        alcohol or to any sugar refined and reexported in refined form 
        or in products containing sugar.
            ``(3) Reestimates.--The Secretary shall make reestimates of 
        sugar consumption, stocks, production, and imports for a crop 
        year as necessary, but not later than the beginning of each of 
        the second through fourth quarters of the crop year.
    ``(b) Sugar Allotments.--
            ``(1) Establishment.--By the beginning of each crop year, 
        the Secretary shall establish for that crop year appropriate 
        allotments under section 359c for the marketing by processors 
        of sugar processed from sugar cane or sugar beets or in-process 
        beet sugar (whether the sugar beets or in-process beet sugar 
        was produced domestically or imported) at a level that is--
                    ``(A) sufficient to maintain raw and refined sugar 
                prices above forfeiture levels so that there will be no 
                forfeitures of sugar to the Commodity Credit 
                Corporation under the loan program for sugar 
                established under section 156 of the Federal 
                Agriculture Improvement and Reform Act of 1996 (7 
                U.S.C. 7272); but
                    ``(B) not less than 85 percent of the estimated 
                quantity of sugar for domestic human consumption for 
                the crop year.
            ``(2) Products.--The Secretary may include sugar products, 
        the majority content of which is sucrose for human consumption, 
        derived from sugar cane, sugar beets, molasses, or sugar in the 
        allotments established under paragraph (1) if the Secretary 
        determines it to be appropriate for purposes of this part.
    ``(c) Coverage of Allotments.--
            ``(1) In general.--The marketing allotments under this part 
        shall apply to the marketing by processors of sugar intended 
        for domestic human consumption that has been processed from 
        sugar cane, sugar beets, or in-process beet sugar, whether such 
        sugar beets or in-process beet sugar was produced domestically 
        or imported.
            ``(2) Exceptions.--Consistent with the administration of 
        marketing allotments for each of the 2002 through 2007 crop 
        years, the marketing allotments shall not apply to sugar sold--
                    ``(A) to facilitate the exportation of the sugar to 
                a foreign country, except that the exports of sugar 
                shall not be eligible to receive credits under reexport 
                programs for refined sugar or sugar containing products 
                administered by the Secretary;
                    ``(B) to enable another processor to fulfill an 
                allocation established for that processor; or
                    ``(C) for uses other than domestic human 
                consumption, except for the sale of sugar for the 
                production of ethanol or other bioenergy if the 
                disposition of the sugar is administered by the 
                Secretary under section 9010 of the Farm Security and 
                Rural Investment Act of 2002.
            ``(3) Requirement.--The sale of sugar described in 
        paragraph (2)(B) shall be--
                    ``(A) made prior to May 1; and
                    ``(B) reported to the Secretary.
    ``(d) Prohibitions.--
            ``(1) In general.--During all or part of any crop year for 
        which marketing allotments have been established, no processor 
        of sugar beets or sugarcane shall market for domestic human 
        consumption a quantity of sugar in excess of the allocation 
        established for the processor, except--
                    ``(A) to enable another processor to fulfill an 
                allocation established for that other processor; or
                    ``(B) to facilitate the exportation of the sugar.
            ``(2) Civil penalty.--Any processor who knowingly violates 
        paragraph (1) shall be liable to the Commodity Credit 
        Corporation for a civil penalty in an amount equal to 3 times 
        the United States market value, at the time of the commission 
        of the violation, of that quantity of sugar involved in the 
        violation.''.
    (c) Establishment of Flexible Marketing Allotments.--Section 359c 
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359cc) is 
amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b) Overall Allotment Quantity.--
            ``(1) In general.--The Secretary shall establish the 
        overall quantity of sugar to be allotted for the crop year 
        (referred to in this part as the `overall allotment quantity') 
        at a level that is--
                    ``(A) sufficient to maintain raw and refined sugar 
                prices above forfeiture levels to avoid forfeiture of 
                sugar to the Commodity Credit Corporation; but
                    ``(B) not less than a quantity equal to 85 percent 
                of the estimated quantity of sugar for domestic human 
                consumption for the crop year.
            ``(2) Adjustment.--Subject to paragraph (1), the Secretary 
        shall adjust the overall allotment quantity to maintain--
                    ``(A) raw and refined sugar prices above forfeiture 
                levels to avoid the forfeiture of sugar to the 
                Commodity Credit Corporation; and
                    ``(B) adequate supplies of raw and refined sugar in 
                the domestic market.'';
            (2) in subsection (d)(2), by inserting ``or in-process beet 
        sugar'' before the period at the end;
            (3) in subsection (g)(1)--
                    (A) by striking ``(1) in general.--The Secretary'' 
                and inserting the following:
            ``(1) Adjustments.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary''; and
                    (B) by adding at the end the following:
                    ``(B) Limitation.--In carrying out subparagraph 
                (A), the Secretary may not reduce the overall allotment 
                quantity to a quantity of less than 85 percent of the 
                estimated quantity of sugar for domestic human 
                consumption for the crop year.''; and
            (4) by striking subsection (h).
    (d) Allocation of Marketing Allotments.--Section 359d(b) of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359dd(b)) is amended--
            (1) in paragraph (1)(F), by striking ``Except as otherwise 
        provided in section 359f(c)(8), if'' and inserting ``If''; and
            (2) in paragraph (2), by striking subparagraphs (G), (H), 
        and (I) and inserting the following:
                    ``(G) Sale of factories of a processor to another 
                processor.--
                            ``(i) Effect of sale.--Subject to 
                        subparagraphs (E) and (F), if 1 or more 
                        factories of a processor of beet sugar (but not 
                        all of the assets of the processor) are sold to 
                        another processor of beet sugar during a crop 
                        year, the Secretary shall assign a pro rata 
                        portion of the allocation of the seller to the 
                        allocation of the buyer to reflect the 
                        historical contribution of the production of 
                        the sold 1 or more factories to the total 
                        allocation of the seller, unless the buyer and 
                        the seller have agreed upon the transfer of a 
                        different portion of the allocation of the 
                        seller, in which case, the Secretary shall 
                        transfer that portion agreed upon by the buyer 
                        and seller.
                            ``(ii) Application of allocation.--The 
                        assignment of the allocation under clause (i) 
                        shall apply--
                                    ``(I) during the remainder of the 
                                crop year for which the sale described 
                                in clause (i) occurs; and
                                    ``(II) during each subsequent crop 
                                year.
                            ``(iii) Use of other factories to fill 
                        allocation.--If the assignment of the 
                        allocation under clause (i) to the buyer for 
                        the 1 or more purchased factories cannot be 
                        filled by the production of the 1 or more 
                        purchased factories, the remainder of the 
                        allocation may be filled by beet sugar produced 
                        by the buyer from other factories of the buyer.
                    ``(H) New entrants starting production, reopening, 
                or acquiring an existing factory with production 
                history.--
                            ``(i) Definition of new entrant.--
                                    ``(I) In general.--In this 
                                subparagraph, the term `new entrant' 
                                means an individual, corporation, or 
                                other entity that--
                                            ``(aa) does not have an 
                                        allocation of the beet sugar 
                                        allotment under this part;
                                            ``(bb) is not affiliated 
                                        with any other individual, 
                                        corporation, or entity that has 
                                        an allocation of beet sugar 
                                        under this part (referred to in 
                                        this clause as a `third 
                                        party'); and
                                            ``(cc) will process sugar 
                                        beets produced by sugar beet 
                                        growers under contract with the 
                                        new entrant for the production 
                                        of sugar at the new or re-
                                        opened factory that is the 
                                        basis for the new entrant 
                                        allocation.
                                    ``(II) Affiliation.--For purposes 
                                of subclause (I)(bb), a new entrant and 
                                a third party shall be considered to be 
                                affiliated if--
                                            ``(aa) the third party has 
                                        an ownership interest in the 
                                        new entrant;
                                            ``(bb) the new entrant and 
                                        the third party have owners in 
                                        common;
                                            ``(cc) the third party has 
                                        the ability to exercise control 
                                        over the new entrant by 
                                        organizational rights, 
                                        contractual rights, or any 
                                        other means;
                                            ``(dd) the third party has 
                                        a contractual relationship with 
                                        the new entrant by which the 
                                        new entrant will make use of 
                                        the facilities or assets of the 
                                        third party; or
                                            ``(ee) there are any other 
                                        similar circumstances by which 
                                        the Secretary determines that 
                                        the new entrant and the third 
                                        party are affiliated.
                            ``(ii) Allocation for a new entrant that 
                        has constructed a new factory or reopened a 
                        factory that was not operated since before 
                        1998.--If a new entrant constructs a new sugar 
                        beet processing factory, or acquires and 
                        reopens a sugar beet processing factory that 
                        last processed sugar beets prior to the 1998 
                        crop year and there is no allocation currently 
                        associated with the factory, the Secretary 
                        shall--
                                    ``(I) assign an allocation for beet 
                                sugar to the new entrant that provides 
                                a fair and equitable distribution of 
                                the allocations for beet sugar so as to 
                                enable the new entrant to achieve a 
                                factory utilization rate comparable to 
                                the factory utilization rates of other 
                                similarly-situated processors; and
                                    ``(II) reduce the allocations for 
                                beet sugar of all other processors on a 
                                pro rata basis to reflect the 
                                allocation to the new entrant.
                            ``(iii) Allocation for a new entrant that 
                        has acquired an existing factory with a 
                        production history.--
                                    ``(I) In general.--If a new entrant 
                                acquires an existing factory that has 
                                processed sugar beets from the 1998 or 
                                subsequent crop year and has a 
                                production history, on the mutual 
                                agreement of the new entrant and the 
                                company currently holding the 
                                allocation associated with the factory, 
                                the Secretary shall transfer to the new 
                                entrant a portion of the allocation of 
                                the current allocation holder to 
                                reflect the historical contribution of 
                                the production of the 1 or more sold 
                                factories to the total allocation of 
                                the current allocation holder, unless 
                                the new entrant and current allocation 
                                holder have agreed upon the transfer of 
                                a different portion of the allocation 
                                of the current allocation holder, in 
                                which case, the Secretary shall 
                                transfer that portion agreed upon by 
                                the new entrant and the current 
                                allocation holder.
                                    ``(II) Prohibition.--In the absence 
                                of a mutual agreement described in 
                                subclause (I), the new entrant shall be 
                                ineligible for a beet sugar allocation.
                            ``(iv) Appeals.--Any decision made under 
                        this subsection may be appealed to the 
                        Secretary in accordance with section 359i.''.
    (e) Reassignment of Deficits.--Section 359e(b) of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is amended in paragraphs 
(1)(D) and (2)(C), by inserting ``of raw cane sugar'' after ``imports'' 
each place it appears.
    (f) Provisions Applicable to Producers.--Section 359f(c) of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(c)) is amended--
            (1) by striking paragraph (8);
            (2) by redesignating paragraphs (1) through (7) as 
        paragraphs (2) through (8), respectively;
            (3) by inserting before paragraph (2) (as so redesignated) 
        the following:
            ``(1) Definition of seed.--
                    ``(A) In general.--In this subsection, the term 
                `seed' means only those varieties of seed that are 
                dedicated to the production of sugarcane from which is 
                produced sugar for human consumption.
                    ``(B) Exclusion.--The term `seed' does not include 
                seed of a high-fiber cane variety dedicated to other 
                uses, as determined by the Secretary'';
            (4) in paragraph (3) (as so redesignated)--
                    (A) in the first sentence--
                            (i) by striking ``paragraph (1)'' and 
                        inserting ``paragraph (2)''; and
                            (ii) by inserting ``sugar produced from'' 
                        after ``quantity of''; and
                    (B) in the second sentence, by striking ``paragraph 
                (7)'' and inserting ``paragraph (8)'';
            (5) in the first sentence of paragraph (6)(C) (as so 
        redesignated), by inserting ``for sugar'' before ``in excess of 
        the farm's proportionate share''; and
            (6) in paragraph (8) (as so redesignated), by inserting 
        ``sugar from'' after ``the amount of''.
    (g) Special Rules.--Section 359g of the Agricultural Adjustment Act 
of 1938 (7 U.S.C. 1359gg) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Transfer of Acreage Base History.--
            ``(1) Transfer authorized.--For the purpose of establishing 
        proportionate shares for sugarcane farms under section 359f(c), 
        the Secretary, on application of any producer, with the written 
        consent of all owners of a farm, may transfer the acreage base 
        history of the farm to any other parcels of land of the 
        applicant.
            ``(2) Converted acreage base.--
                    ``(A) In general.--Sugarcane acreage base 
                established under section 359f(c) that has been or is 
                converted to nonagricultural use on or after May 13, 
                2002, may be transferred to other land suitable for the 
                production of sugarcane that can be delivered to a 
                processor in a proportionate share State in accordance 
                with this paragraph.
                    ``(B) Notification.--Not later than 90 days after 
                the Secretary becomes aware of a conversion of any 
                sugarcane acreage base to a nonagricultural use, the 
                Secretary shall notify the 1 or more affected 
                landowners of the transferability of the applicable 
                sugarcane acreage base.
                    ``(C) Initial transfer period.--The owner of the 
                base attributable to the acreage at the time of the 
                conversion shall be afforded 90 days from the date of 
                the receipt of the notification under subparagraph (B) 
                to transfer the base to 1 or more farms owned by the 
                owner.
                    ``(D) Grower of record.--If a transfer under 
                subparagraph (C) cannot be accomplished during the 
                period specified in that subparagraph, the grower of 
                record with regard to the acreage base on the date on 
                which the acreage was converted to nonagricultural use 
                shall--
                            ``(i) be notified; and
                            ``(ii) have 90 days from the date of the 
                        receipt of the notification to transfer the 
                        base to 1 or more farms operated by the grower.
                    ``(E) Pool distribution.--
                            ``(i) In general.--If transfers under 
                        subparagraphs (B) and (C) cannot be 
                        accomplished during the periods specified in 
                        those subparagraphs, the county committee of 
                        the Farm Service Agency for the applicable 
                        county shall place the acreage base in a pool 
                        for possible assignment to other farms.
                            ``(ii) Acceptance of requests.--After 
                        providing reasonable notice to farm owners, 
                        operators, and growers of record in the county, 
                        the county committee shall accept requests from 
                        owners, operators, and growers of record in the 
                        county.
                            ``(iii) Assignment.--The county committee 
                        shall assign the acreage base to other farms in 
                        the county that are eligible and capable of 
                        accepting the acreage base, based on a random 
                        drawing from among the requests received under 
                        clause (ii).
                    ``(F) Statewide reallocation.--
                            ``(i) In general.--Any acreage base 
                        remaining unassigned after the transfers and 
                        processes described in subparagraphs (A) 
                        through (E) shall be made available to the 
                        State committee of the Farm Service Agency for 
                        allocation among the remaining county 
                        committees in the State representing counties 
                        with farms eligible for assignment of the base, 
                        based on a random drawing.
                            ``(ii) Allocation.--Any county committee 
                        receiving acreage base under this subparagraph 
                        shall allocate the acreage base to eligible 
                        farms using the process described in 
                        subparagraph (E).
                    ``(G) Status of reassigned base.--After acreage 
                base has been reassigned in accordance with this 
                subparagraph, the acreage base shall--
                            ``(i) remain on the farm; and
                            ``(ii) be subject to the transfer 
                        provisions of paragraph (1).''; and
            (2) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) by inserting ``affected'' before 
                        ``crop-share owners'' each place it appears; 
                        and
                            (ii) by striking ``, and from the 
                        processing company holding the applicable 
                        allocation for such shares,''; and
                    (B) in paragraph (2), by striking ``based on'' and 
                all that follows through the end of subparagraph (B) 
                and inserting ``based on--
                    ``(A) the number of acres of sugarcane base being 
                transferred; and
                    ``(B) the pro rata amount of allocation at the 
                processing company holding the applicable allocation 
                that equals the contribution of the grower to 
                allocation of the processing company for the sugarcane 
                acreage base being transferred.''.
    (h) Appeals.--Section 359i of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1359ii) is amended--
            (1) in subsection (a), by inserting ``or 359g(d)'' after 
        ``359f''; and
            (2) by striking subsection (c).
    (i) Reallocating Sugar Quota Import Shortfalls.--Section 359k of 
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk) is repealed.
    (j) Administration of Tariff Rate Quotas.--Part VII of subtitle B 
of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359aa) (as amended by subsection (i)) is amended by adding at the end 
the following:

``SEC. 359K. ADMINISTRATION OF TARIFF RATE QUOTAS.

    ``(a) Establishment.--
            ``(1) In general.--Except as provided in paragraph (2) and 
        notwithstanding any other provision of law, at the beginning of 
        the quota year, the Secretary shall establish the tariff-rate 
        quotas for raw cane sugar and refined sugars at the minimum 
        level necessary to comply with obligations under international 
        trade agreements that have been approved by Congress.
            ``(2) Exception.--Paragraph (1) shall not apply to 
        specialty sugar.
    ``(b) Adjustment.--
            ``(1) Before april 1.--Before April 1 of each fiscal year, 
        if there is an emergency shortage of sugar in the United States 
        market that is caused by a war, flood, hurricane, or other 
        natural disaster, or other similar event as determined by the 
        Secretary--
                    ``(A) the Secretary shall take action to increase 
                the supply of sugar in accordance with sections 
                359c(b)(2) and 359e(b), including an increase in the 
                tariff-rate quota for raw cane sugar to accommodate the 
                reassignment to imports; and
                    ``(B) if there is still a shortage of sugar in the 
                United States market, and marketing of domestic sugar 
                has been maximized, and domestic raw cane sugar 
                refining capacity has been maximized, the Secretary may 
                increase the tariff-rate quota for refined sugars 
                sufficient to accommodate the supply increase, if the 
                further increase will not threaten to result in the 
                forfeiture of sugar pledged as collateral for a loan 
                under section 156 of the Federal Agriculture 
                Improvement and Reform Act of 1996 (7 U.S.C. 7272).
            ``(2) On or after april 1.--On or after April 1 of each 
        fiscal year--
                    ``(A) the Secretary may take action to increase the 
                supply of sugar in accordance with sections 359c(b)(2) 
                and 359e(b), including an increase in the tariff-rate 
                quota for raw cane sugar to accommodate the 
                reassignment to imports; and
                    ``(B) if there is still a shortage of sugar in the 
                United States market, and marketing of domestic sugar 
                has been maximized, the Secretary may increase the 
                tariff-rate quota for raw cane sugar if the further 
                increase will not threaten to result in the forfeiture 
                of sugar pledged as collateral for a loan under section 
                156 of the Federal Agriculture Improvement and Reform 
                Act of 1996 (7 U.S.C. 7272).''.
    (k) Period of Effectiveness.--Part VII of subtitle B of title III 
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa) (as 
amended by subsection (j)) is amended by adding at the end the 
following:

``SEC. 359L. PERIOD OF EFFECTIVENESS.

    ``(a) In General.--This part shall be effective only for the 2008 
through 2012 crop years for sugar.
    ``(b) Transition.--The Secretary shall administer flexible 
marketing allotments for sugar for the 2007 crop year for sugar on the 
terms and conditions provided in this part as in effect on the day 
before the date of enactment of this section.''.

SEC. 1404. STORAGE FACILITY LOANS.

    Section 1402(c) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 7971(c)) is amended--
            (1) in paragraph (1), by striking ``and'' at the end;
            (2) by redesignating paragraph (2) as paragraph (3);
            (3) by inserting after paragraph (1) the following:
            ``(2) not include any penalty for prepayment; and''; and
            (4) in paragraph (3) (as redesignated by paragraph (2)), by 
        inserting ``other'' after ``on such''.

SEC. 1405. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS.

    Subtitle E of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7281 et seq.) is amended by adding at the end the 
following:

``SEC. 167. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS.

    ``(a) Initial Crop Years.--Notwithstanding any other provision of 
law, for each of the 2008 through 2011 crop years, the Commodity Credit 
Corporation shall establish rates for the storage of forfeited sugar in 
an amount that is not less than--
            ``(1) in the case of refined sugar, 15 cents per 
        hundredweight of refined sugar per month; and
            ``(2) in the case of raw cane sugar, 10 cents per 
        hundredweight of raw cane sugar per month.
    ``(b) Subsequent Crop Years.--For each of the 2012 and subsequent 
crop years, the Commodity Credit Corporation shall establish rates for 
the storage of forfeited sugar in the same manner as was used on the 
day before the date of enactment of this section.''.

                           Subtitle E--Dairy

SEC. 1501. DAIRY PRODUCT PRICE SUPPORT PROGRAM.

    (a) Definition of Net Removals.--In this section, the term ``net 
removals'' means--
            (1) the sum of--
                    (A) the quantity of a product described in 
                subsection (b) purchased by the Commodity Credit 
                Corporation under this section; and
                    (B) the quantity of the product exported under 
                section 153 of the Food Security Act of 1985 (15 U.S.C. 
                713a-14); less
            (2) the quantity of the product sold for unrestricted use 
        by the Commodity Credit Corporation.
    (b) Support Activities.--During the period beginning on January 1, 
2008, and ending December 31, 2012, the Secretary shall support the 
price of cheddar cheese, butter, and nonfat dry milk through the 
purchase of such products made from milk produced in the United States.
    (c) Purchase Price.--To carry out subsection (b) during the period 
specified in that subsection, the Secretary shall purchase--
            (1) cheddar cheese in blocks at not less than $1.13 per 
        pound;
            (2) cheddar cheese in barrels at not less than $1.10 per 
        pound;
            (3) butter at not less than $1.05 per pound; and
            (4) nonfat dry milk at not less than $0.80 per pound.
    (d) Temporary Price Adjustment to Avoid Excess Inventories.--
            (1) Adjustments authorized.--The Secretary may adjust the 
        minimum purchase prices established under subsection (c) only 
        as permitted under this subsection.
            (2) Cheese inventories in excess of 200,000,000 pounds.--If 
        net removals for a period of 12 consecutive months exceed 
        200,000,000 pounds of cheese, but do not exceed 400,000,000 
        pounds, the Secretary may reduce the purchase prices under 
        paragraphs (1) and (2) of subsection (c) during the immediately 
        following month by not more than 10 cents per pound.
            (3) Cheese inventories in excess of 400,000,000 pounds.--If 
        net removals for a period of 12 consecutive months exceed 
        400,000,000 pounds of cheese, the Secretary may reduce the 
        purchase prices under paragraphs (1) and (2) of subsection (c) 
        during the immediately following month by not more than 20 
        cents per pound.
            (4) Butter inventories in excess of 450,000,000 pounds.--If 
        net removals for a period of 12 consecutive months exceed 
        450,000,000 pounds of butter, but do not exceed 650,000,000 
        pounds, the Secretary may reduce the purchase price under 
        subsection (c)(3) during the immediately following month by not 
        more than 10 cents per pound.
            (5) Butter inventories in excess of 650,000,000 pounds.--If 
        net removals for a period of 12 consecutive months exceed 
        650,000,000 pounds of butter, the Secretary may reduce the 
        purchase price under subsection (c)(3) during the immediately 
        following month by not more than 20 cents per pound.
            (6) Nonfat dry milk inventories in excess of 600,000,000 
        pounds.--If net removals for a period of 12 consecutive months 
        exceed 600,000,000 pounds of nonfat dry milk, but do not exceed 
        800,000,000 pounds, the Secretary may reduce the purchase price 
        under subsection (c)(4) during the immediately following month 
        by not more than 5 cents per pound.
            (7) Nonfat dry milk inventories in excess of 800,000,000 
        pounds.--If net removals for a period of 12 consecutive months 
        exceed 800,000,000 pounds of nonfat dry milk, the Secretary may 
        reduce the purchase price under subsection (c)(4) during the 
        immediately following month by not more than 10 cents per 
        pound.
    (e) Uniform Purchase Price.--The prices that the Secretary pays for 
cheese, butter, or nonfat dry milk, respectively, under subsection (b) 
shall be uniform for all regions of the United States.
    (f) Sales From Inventories.--In the case of each commodity 
specified in subsection (c) that is available for unrestricted use in 
the inventory of the Commodity Credit Corporation, the Secretary may 
sell the commodity at the market prices prevailing for that commodity 
at the time of sale, except that the sale price may not be less than 
110 percent of the minimum purchase price specified in subsection (c) 
for that commodity.

SEC. 1502. DAIRY FORWARD PRICING PROGRAM.

    (a) Program Required.--The Secretary shall establish a program 
under which milk producers and cooperative associations of producers 
are authorized to voluntarily enter into forward price contracts with 
milk handlers.
    (b) Minimum Milk Price Requirements.--Payments made by milk 
handlers to milk producers and cooperative associations of producers, 
and prices received by milk producers and cooperative associations, in 
accordance with the terms of a forward price contract authorized by 
subsection (a), shall be treated as satisfying--
            (1) all uniform and minimum milk price requirements of 
        subparagraphs (B) and (F) of paragraph (5) of section 8c of the 
        Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with 
        amendments by the Agricultural Marketing Agreement Act of 1937; 
        and
            (2) the total payment requirement of subparagraph (C) of 
        that paragraph.
    (c) Milk Covered by Program.--
            (1) Covered milk.--The program shall apply only with 
        respect to the marketing of federally regulated milk that--
                    (A) is not classified as Class I milk or otherwise 
                intended for fluid use; and
                    (B) is in the current of interstate or foreign 
                commerce or directly burdens, obstructs, or affects 
                interstate or foreign commerce in federally regulated 
                milk.
            (2) Relation to class i milk.--To assist milk handlers in 
        complying with paragraph (1)(A) without having to segregate or 
        otherwise individually track the source and disposition of 
        milk, a milk handler may allocate milk receipts from producers, 
        cooperatives, and other sources that are not subject to a 
        forward contract to satisfy the obligations of the handler with 
        regard to Class I milk usage.
    (d) Voluntary Program.--
            (1) In general.--A milk handler may not require 
        participation in a forward pricing contract as a condition of 
        the handler receiving milk from a producer or cooperative 
        association of producers.
            (2) Pricing.--A producer or cooperative association 
        described in paragraph (1) may continue to have their milk 
        priced in accordance with the minimum payment provisions of the 
        Federal milk marketing order.
            (3) Complaints.--
                    (A) In general.--The Secretary shall investigate 
                complaints made by producers or cooperative 
                associations of coercion by handlers to enter into 
                forward contracts.
                    (B) Action.--If the Secretary finds evidence of 
                coercion, the Secretary shall take appropriate action.
    (e) Duration.--
            (1) New contracts.--No forward price contract may be 
        entered into under the program established under this section 
        after September 30, 2012.
            (2) Application.--No forward contract entered into under 
        the program may extend beyond September 30, 2015.

SEC. 1503. DAIRY EXPORT INCENTIVE PROGRAM.

    (a) Extension.--Section 153(a) of the Food Security Act of 1985 (15 
U.S.C. 713a-14(a)) is amended by striking ``2007'' and inserting 
``2012''.
    (b) Compliance With Trade Agreements.--Section 153 of the Food 
Security Act of 1985 (15 U.S.C. 713a-14) is amended--
            (1) in subsection (c), by striking paragraph (3) and 
        inserting the following:
            ``(3) the maximum volume of dairy product exports allowable 
        consistent with the obligations of the United States under the 
        Uruguay Round Agreements approved under section 101 of the 
        Uruguay Round Agreements Act (19 U.S.C. 3511) is exported under 
        the program each year (minus the volume sold under section 1163 
        of this Act during that year), except to the extent that the 
        export of such a volume under the program would, in the 
        judgment of the Secretary, exceed the limitations on the value 
        permitted under subsection (f); and''; and.
            (2) in subsection (f), by striking paragraph (1) and 
        inserting the following:
            ``(1) Funds and commodities.--Except as provided in 
        paragraph (2), the Commodity Credit Corporation shall in each 
        year use money and commodities for the program under this 
        section in the maximum amount consistent with the obligations 
        of the United States under the Uruguay Round Agreements 
        approved under section 101 of the Uruguay Round Agreements Act 
        (19 U.S.C. 3511), minus the amount expended under section 1163 
        of this Act during that year.''.

SEC. 1504. REVISION OF FEDERAL MARKETING ORDER AMENDMENT PROCEDURES.

    Section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), 
reenacted with amendments by the Agricultural Marketing Agreement Act 
of 1937, is amended by striking subsection (17) and inserting the 
following:
            ``(17) Provisions applicable to amendments.--
                    ``(A) Applicability to amendments.--The provisions 
                of this section and section 8d applicable to orders 
                shall be applicable to amendments to orders.
                    ``(B) Supplemental rules of practice.--
                            ``(i) In general.--Not later than 60 days 
                        after the date of enactment of this 
                        subparagraph, the Secretary shall issue, using 
                        informal rulemaking, supplemental rules of 
                        practice to define guidelines and timeframes 
                        for the rulemaking process relating to 
                        amendments to orders.
                            ``(ii) Issues.--At a minimum, the 
                        supplemental rules of practice shall 
                        establish--
                                    ``(I) proposal submission 
                                requirements;
                                    ``(II) pre-hearing information 
                                session specifications;
                                    ``(III) written testimony and data 
                                request requirements;
                                    ``(IV) public participation 
                                timeframes; and
                                    ``(V) electronic document 
                                submission standards.
                            ``(iii) Effective date.--The supplemental 
                        rules of practice shall take effect not later 
                        than 120 days after the date of enactment of 
                        this subparagraph, as determined by the 
                        Secretary.
                    ``(C) Hearing timeframes.--
                            ``(i) In general.--Not more than 30 days 
                        after the receipt of a proposal for an 
                        amendment hearing regarding a milk marketing 
                        order, the Secretary shall--
                                    ``(I) issue a notice providing an 
                                action plan and expected timeframes for 
                                completion of the hearing not more than 
                                120 days after the date of the issuance 
                                of the notice;
                                    ``(II)(aa) issue a request for 
                                additional information to be used by 
                                the Secretary in making a determination 
                                regarding the proposal; and
                                    ``(bb) if the additional 
                                information is not provided to the 
                                Secretary within the timeframe 
                                requested by the Secretary, issue a 
                                denial of the request; or
                                    ``(III) issue a denial of the 
                                request.
                            ``(ii) Requirement.--A post-hearing brief 
                        may be filed under this paragraph not later 
                        than 60 days after the date of an amendment 
                        hearing regarding a milk marketing order.
                            ``(iii) Recommended decisions.--A 
                        recommended decision on a proposed amendment to 
                        an order shall be issued not later than 90 days 
                        after the deadline for the submission of post-
                        hearing briefs.
                            ``(iv) Final decisions.--A final decision 
                        on a proposed amendment to an order shall be 
                        issued not later than 60 days after the 
                        deadline for submission of comments and 
                        exceptions to the recommended decision issued 
                        under clause (iii).
                    ``(D) Industry assessments.--If the Secretary 
                determines it is necessary to improve or expedite 
                rulemaking under this subsection, the Secretary may 
                impose an assessment on the affected industry to 
                supplement appropriated funds for the procurement of 
                service providers, such as court reporters.
                    ``(E) Use of informal rulemaking.--The Secretary 
                may use rulemaking under section 553 of title 5, United 
                States Code, to amend orders, other than provisions of 
                orders that directly affect milk prices.
                    ``(F) Avoiding duplication.--The Secretary shall 
                not be required to hold a hearing on any amendment 
                proposed to be made to a milk marketing order in 
                response to an application for a hearing on the 
                proposed amendment if--
                            ``(i) the application requesting the 
                        hearing is received by the Secretary not later 
                        than 90 days after the date on which the 
                        Secretary has announced the decision on a 
                        previously proposed amendment to that order; 
                        and
                            ``(ii) the 2 proposed amendments are 
                        essentially the same, as determined by the 
                        Secretary.
                    ``(G) Monthly feed and fuel costs for make 
                allowances.--As part of any hearing to adjust make 
                allowances under marketing orders commencing prior to 
                September 30, 2012, the Secretary shall--
                            ``(i) determine the average monthly prices 
                        of feed and fuel incurred by dairy producers in 
                        the relevant marketing area;
                            ``(ii) consider the most recent monthly 
                        feed and fuel price data available; and
                            ``(iii) consider those prices in 
                        determining whether or not to adjust make 
                        allowances.''.

SEC. 1505. DAIRY INDEMNITY PROGRAM.

    Section 3 of Public Law 90-484 (7 U.S.C. 450l) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 1506. MILK INCOME LOSS CONTRACT PROGRAM.

    (a) Definitions.--In this section:
            (1) Class i milk.--The term ``Class I milk'' means milk 
        (including milk components) classified as Class I milk under a 
        Federal milk marketing order.
            (2) Eligible production.--The term ``eligible production'' 
        means milk produced by a producer in a participating State.
            (3) Federal milk marketing order.--The term ``Federal milk 
        marketing order'' means an order issued under section 8c of the 
        Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with 
        amendments by the Agricultural Marketing Agreement Act of 1937.
            (4) Participating state.--The term ``participating State'' 
        means each State.
            (5) Producer.--The term ``producer'' means an individual or 
        entity that directly or indirectly (as determined by the 
        Secretary)--
                    (A) shares in the risk of producing milk; and
                    (B) makes contributions (including land, labor, 
                management, equipment, or capital) to the dairy farming 
                operation of the individual or entity that are at least 
                commensurate with the share of the individual or entity 
                of the proceeds of the operation.
    (b) Payments.--The Secretary shall offer to enter into contracts 
with producers on a dairy farm located in a participating State under 
which the producers receive payments on eligible production.
    (c) Amount.--Payments to a producer under this section shall be 
calculated by multiplying (as determined by the Secretary)--
            (1) the payment quantity for the producer during the 
        applicable month established under subsection (e);
            (2) the amount equal to--
                    (A) $16.94 per hundredweight, as adjusted under 
                subsection (d); less
                    (B) the Class I milk price per hundredweight in 
                Boston under the applicable Federal milk marketing 
                order; by
            (3)(A) for the period beginning October 1, 2007, and ending 
        September 30, 2008, 34 percent;
            (B) for the period beginning October 1, 2008, and ending 
        August 31, 2012, 45 percent; and
            (C) for the period beginning September 1, 2012, and 
        thereafter, 34 percent.
    (d) Payment Rate Adjustment for Feed Prices.--
            (1) Initial adjustment authority.--During the period 
        beginning on January 1, 2008, and ending on August 31, 2012, if 
        the National Average Dairy Feed Ration Cost for a month during 
        that period is greater than $7.35 per hundredweight, the amount 
        specified in subsection (c)(2)(A) used to determine the payment 
        rate for that month shall be increased by 45 percent of the 
        percentage by which the National Average Dairy Feed Ration Cost 
        exceeds $7.35 per hundredweight.
            (2) Subsequent adjustment authority.--For any month 
        beginning on or after September 1, 2012, if the National 
        Average Dairy Feed Ration Cost for the month is greater than 
        $9.50 per hundredweight, the amount specified in subsection 
        (c)(2)(A) used to determine the payment rate for that month 
        shall be increased by 45 percent of the percentage by which the 
        National Average Dairy Feed Ration Cost exceeds $9.50 per 
        hundredweight.
            (3) National average dairy feed ration cost.--For each 
        month, the Secretary shall calculate a National Average Dairy 
        Feed Ration Cost per hundredweight using the same procedures 
        (adjusted to a hundredweight basis) used to calculate the feed 
        components of the estimated price of 16% Mixed Dairy Feed per 
        pound noted on page 33 of the USDA March 2008 Agricultural 
        Prices publication (including the data and factors noted in 
        footnote 4).
    (e) Payment Quantity.--
            (1) In general.--Subject to paragraph (2), the payment 
        quantity for a producer during the applicable month under this 
        section shall be equal to the quantity of eligible production 
        marketed by the producer during the month.
            (2) Limitation.--
                    (A) In general.--The payment quantity for all 
                producers on a single dairy operation for which the 
                producers receive payments under subsection (b) shall 
                not exceed--
                            (i) for the period beginning October 1, 
                        2007, and ending September 30, 2008, 2,400,000 
                        pounds;
                            (ii) for the period beginning October 1, 
                        2008, and ending August 31, 2012, 2,985,000 
                        pounds for each fiscal year; and
                            (iii) effective beginning September 1, 
                        2012, 2,400,000 pounds per fiscal year.
                    (B) Standards.--For purposes of determining whether 
                producers are producers on separate dairy operations or 
                a single dairy operation, the Secretary shall apply the 
                same standards as were applied in implementing the 
                dairy program under section 805 of the Agriculture, 
                Rural Development, Food and Drug Administration, and 
                Related Agencies Appropriations Act, 2001 (as enacted 
                into law by Public Law 106-387; 114 Stat. 1549A-50).
            (3) Reconstitution.--The Secretary shall ensure that a 
        producer does not reconstitute a dairy operation for the sole 
        purpose of receiving additional payments under this section.
    (f) Payments.--A payment under a contract under this section shall 
be made on a monthly basis not later than 60 days after the last day of 
the month for which the payment is made.
    (g) Signup.--The Secretary shall offer to enter into contracts 
under this section during the period beginning on the date that is 90 
days after the date of enactment of this Act and ending on September 
30, 2012.
    (h) Duration of Contract.--
            (1) In general.--Except as provided in paragraph (2), any 
        contract entered into by producers on a dairy farm under this 
        section shall cover eligible production marketed by the 
        producers on the dairy farm during the period starting with the 
        first day of month the producers on the dairy farm enter into 
        the contract and ending on September 30, 2012.
            (2) Violations.--If a producer violates the contract, the 
        Secretary may--
                    (A) terminate the contract and allow the producer 
                to retain any payments received under the contract; or
                    (B) allow the contract to remain in effect and 
                require the producer to repay a portion of the payments 
                received under the contract based on the severity of 
                the violation.

SEC. 1507. DAIRY PROMOTION AND RESEARCH PROGRAM.

    (a) Extension of Dairy Promotion and Research Authority.--Section 
113(e)(2) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 
4504(e)(2)) is amended by striking ``2007'' and inserting ``2012''.
    (b) Definition of United States for Promotion Program.--Section 111 
of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4502) is 
amended--
            (1) by striking subsection (l) and inserting the following:
    ``(l) the term `United States', when used in a geographical sense, 
means all of the States, the District of Columbia, and the Commonwealth 
of Puerto Rico;''; and
            (2) in subsection (m), by striking ``(as defined in 
        subsection (l))''.
    (c) Definition of United States for Research Program.--Section 130 
of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4531)) is 
amended by striking paragraph (12) and inserting the following:
            ``(12) the term `United States', when used in a 
        geographical sense, means all of the States, the District of 
        Columbia, and the Commonwealth of Puerto Rico.''.
    (d) Assessment Rate for Imported Dairy Products.--Section 113(g) of 
the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(g)) is 
amended by striking paragraph (3) and inserting the following:
            ``(3) Rate.--
                    ``(A) In general.--The rate of assessment for milk 
                produced in the United States prescribed by the order 
                shall be 15 cents per hundredweight of milk for 
                commercial use or the equivalent thereof, as determined 
                by the Secretary.
                    ``(B) Imported dairy products.--The rate of 
                assessment for imported dairy products prescribed by 
                the order shall be 7.5 cents per hundredweight of milk 
                for commercial use or the equivalent thereof, as 
                determined by the Secretary.''.
    (e) Time and Method of Importer Payments.--Section 113(g)(6) of the 
Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(g)(6)) is 
amended--
            (1) by striking subparagraph (B); and
            (2) by redesignating subparagraph (C) as subparagraph (B).
    (f) Refund of Assessments on Certain Imported Dairy Products.--
Section 113(g) of the Dairy Production Stabilization Act of 1983 (7 
U.S.C. 4504(g)) is amended by adding at the end the following:
            ``(7) Refund of assessments on certain imported products.--
                    ``(A) In general.--An importer shall be entitled to 
                a refund of any assessment paid under this subsection 
                on imported dairy products imported under a contract 
                entered into prior to the date of enactment of the 
                Food, Conservation, and Energy Act of 2008.
                    ``(B) Expiration.--Refunds under subparagraph (A) 
                shall expire 1 year after the date of enactment of the 
                Food, Conservation, and Energy Act of 2008.''.

SEC. 1508. REPORT ON DEPARTMENT OF AGRICULTURE REPORTING PROCEDURES FOR 
              NONFAT DRY MILK.

    Not later than 90 days after the date of enactment of this Act, the 
Secretary shall submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate a report regarding Department of Agriculture 
reporting procedures for nonfat dry milk and the impact of the 
procedures on Federal milk marketing order minimum prices during the 
period beginning on July 1, 2006, and ending on the date of enactment 
of this Act.

SEC. 1509. FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.

    (a) Establishment.--Subject to the availability of appropriations 
to carry out this section, the Secretary shall establish a commission 
to be known as the ``Federal Milk Marketing Order Review Commission'' 
(referred to in this section as the ``commission''), which shall 
conduct a comprehensive review and evaluation of--
            (1) the Federal milk marketing order system in effect on 
        the date of establishment of the commission; and
            (2) non-Federal milk marketing order systems.
    (b) Elements of Review and Evaluation.--As part of the review and 
evaluation under subsection (a), the commission shall consider 
legislative and regulatory options for--
            (1) ensuring that the competitiveness of dairy products 
        with other competing products in the marketplace is preserved 
        and enhanced;
            (2) enhancing the competitiveness of American dairy 
        producers in world markets;
            (3) ensuring the competitiveness and transparency in dairy 
        pricing;
            (4) streamlining and expediting the process by which 
        amendments to Federal milk market orders are adopted;
            (5) simplifying the Federal milk marketing order system;
            (6) evaluating whether the Federal milk marketing order 
        system serves the interests of dairy producers, consumers, and 
        dairy processors; and
            (7) evaluating the nutritional composition of milk, 
        including the potential benefits and costs of adjusting the 
        milk content standards.
    (c) Membership.--
            (1) Composition.--The commission shall consist of 14 
        members.
            (2) Members.--As soon as practicable after the date on 
        which funds are first made available to carry out this section, 
        the Secretary shall appoint members to the commission according 
        to the following requirements:
                    (A) At least 1 member shall represent a national 
                consumer organization.
                    (B) At least 4 members shall represent land-grant 
                universities or NLGCA Institutions (as defined in 
                section 1404 of the National Agricultural Research, 
                Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
                3103)) with accredited dairy economic programs, with at 
                least 2 of those members being experts in the field of 
                economics.
                    (C) At least 1 member shall represent the food and 
                beverage retail sector.
                    (D) 4 dairy producers and 4 dairy processors, 
                appointed so as to balance geographical distribution of 
                milk production and dairy processing, reflect all 
                segments of dairy processing, and represent all regions 
                of the United States equitably, including States that 
                operate outside of a Federal milk marketing order.
            (3) Chair.--The commission shall elect 1 of the appointed 
        members of the commission to serve as chairperson for the 
        duration of the proceedings of the commission.
            (4) Vacancy.--Any vacancy occurring before the termination 
        of the commission shall be filled in the same manner as the 
        original appointment.
            (5) Compensation.--Members of the commission shall serve 
        without compensation, but shall be reimbursed by the Secretary 
        from existing budget authority for necessary and reasonable 
        expenses incurred in the performance of the duties of the 
        commission.
    (d) Report.--
            (1) In general.--Not later than 2 years after the date of 
        the first meeting of the commission, the commission shall 
        submit to Congress and the Secretary a report describing the 
        results of the review and evaluation conducted under this 
        section, including such recommendations regarding the 
        legislative and regulatory options considered under subsection 
        (b) as the commission considers to be appropriate.
            (2) Opinions.--The report findings shall reflect, to the 
        maximum extent practicable, a consensus opinion of the 
        commission members, but the report may include majority and 
        minority findings regarding those matters for which consensus 
        was not reached.
    (e) Advisory Nature.--The commission is wholly advisory in nature, 
and the recommendations of the commission are nonbinding.
    (f) No Effect on Existing Programs.--The Secretary shall not allow 
the existence of the commission to impede, delay, or otherwise affect 
any decisionmaking process of the Department of Agriculture, including 
any rulemaking procedures planned, proposed, or near completion.
    (g) Administrative Assistance.--The Secretary shall provide 
administrative support to the commission, and expend to carry out this 
section such funds as necessary from budget authority available to the 
Secretary.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.
    (i) Termination.--The commission shall terminate effective on the 
date of the submission of the report under subsection (d).

SEC. 1510. MANDATORY REPORTING OF DAIRY COMMODITIES.

    (a) Electronic Reporting.--Section 273 of the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1637b) is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following:
    ``(d) Electronic Reporting.--
            ``(1) In general.--Subject to the availability of funds 
        under paragraph (3), the Secretary shall establish an 
        electronic reporting system to carry out this section.
            ``(2) Frequency of reports.--After the establishment of the 
        electronic reporting system in accordance with paragraph (1), 
        the Secretary shall increase the frequency of the reports 
        required under this section.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are necessary to 
        carry out this subsection.''.
    (b) Quarterly Audits.--Section 273(c) of the Agricultural Marketing 
Act of 1946 (7 U.S.C. 1637b(c)) is amended by striking paragraph (3) 
and inserting the following:
            ``(3) Verification.--
                    ``(A) In general.--The Secretary shall take such 
                actions as the Secretary considers necessary to verify 
                the accuracy of the information submitted or reported 
                under this subtitle.
                    ``(B) Quarterly audits.--The Secretary shall 
                quarterly conduct an audit of information submitted or 
                reported under this subtitle and compare such 
                information with other related dairy market 
                statistics.''.

                       Subtitle F--Administration

SEC. 1601. ADMINISTRATION GENERALLY.

    (a) Use of Commodity Credit Corporation.--Except as otherwise 
provided in this title, the Secretary shall use the funds, facilities, 
and authorities of the Commodity Credit Corporation to carry out this 
title.
    (b) Determinations by Secretary.--A determination made by the 
Secretary under this title shall be final and conclusive.
    (c) Regulations.--
            (1) In general.--Except as otherwise provided in this 
        subsection, not later than 90 days after the date of enactment 
        of this Act, the Secretary and the Commodity Credit 
        Corporation, as appropriate, shall promulgate such regulations 
        as are necessary to implement this title and the amendments 
        made by this title.
            (2) Procedure.--The promulgation of the regulations and 
        administration of this title and the amendments made by this 
        title shall be made without regard to--
                    (A) chapter 35 of title 44, United States Code 
                (commonly known as the ``Paperwork Reduction Act'');
                    (B) the Statement of Policy of the Secretary of 
                Agriculture effective July 24, 1971 (36 Fed. Reg. 
                13804), relating to notices of proposed rulemaking and 
                public participation in rulemaking; and
                    (C) the notice and comment provisions of section 
                553 of title 5, United States Code.
            (3) Congressional review of agency rulemaking.--In carrying 
        out this subsection, the Secretary shall use the authority 
        provided under section 808 of title 5, United States Code.
            (4) Interim regulations.--Notwithstanding paragraphs (1) 
        and (2), the Secretary shall implement the amendments made by 
        sections 1603 and 1604 for the 2009 crop, fiscal, or program 
        year, as appropriate, through the promulgation of an interim 
        rule.
    (d) Adjustment Authority Related to Trade Agreements Compliance.--
            (1) Required determination; adjustment.--If the Secretary 
        determines that expenditures under this title that are subject 
        to the total allowable domestic support levels under the 
        Uruguay Round Agreements (as defined in section 2 of the 
        Uruguay Round Agreements Act (19 U.S.C. 3501)) will exceed such 
        allowable levels for any applicable reporting period, the 
        Secretary shall, to the maximum extent practicable, make 
        adjustments in the amount of such expenditures during that 
        period to ensure that such expenditures do not exceed such 
        allowable levels.
            (2) Congressional notification.--Before making any 
        adjustment under paragraph (1), the Secretary shall submit to 
        the Committee on Agriculture of the House of Representatives or 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate a report describing the determination made under that 
        paragraph and the extent of the adjustment to be made.
    (e) Treatment of Advance Payment Option.--Section 1601(d) of the 
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7991(d)) is 
amended--
            (1) in paragraph (1), by striking ``and'' at the end;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(3) the advance payment of direct payments and counter-
        cyclical payments under title I of the Food, Conservation, and 
        Energy Act of 2008.''.

SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

    (a) Agricultural Adjustment Act of 1938.--The following provisions 
of the Agricultural Adjustment Act of 1938 shall not be applicable to 
the 2008 through 2012 crops of covered commodities, peanuts, and sugar 
and shall not be applicable to milk during the period beginning on the 
date of enactment of this Act through December 31, 2012:
            (1) Parts II through V of subtitle B of title III (7 U.S.C. 
        1326 et seq.).
            (2) In the case of upland cotton, section 377 (7 U.S.C. 
        1377).
            (3) Subtitle D of title III (7 U.S.C. 1379a et seq.).
            (4) Title IV (7 U.S.C. 1401 et seq.).
    (b) Agricultural Act of 1949.--The following provisions of the 
Agricultural Act of 1949 shall not be applicable to the 2008 through 
2012 crops of covered commodities, peanuts, and sugar and shall not be 
applicable to milk during the period beginning on the date of enactment 
of this Act and through December 31, 2012:
            (1) Section 101 (7 U.S.C. 1441).
            (2) Section 103(a) (7 U.S.C. 1444(a)).
            (3) Section 105 (7 U.S.C. 1444b).
            (4) Section 107 (7 U.S.C. 1445a).
            (5) Section 110 (7 U.S.C. 1445e).
            (6) Section 112 (7 U.S.C. 1445g).
            (7) Section 115 (7 U.S.C. 1445k).
            (8) Section 201 (7 U.S.C. 1446).
            (9) Title III (7 U.S.C. 1447 et seq.).
            (10) Title IV (7 U.S.C. 1421 et seq.), other than sections 
        404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).
            (11) Title V (7 U.S.C. 1461 et seq.).
            (12) Title VI (7 U.S.C. 1471 et seq.).
    (c) Suspension of Certain Quota Provisions.--The joint resolution 
entitled ``A joint resolution relating to corn and wheat marketing 
quotas under the Agricultural Adjustment Act of 1938, as amended'', 
approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable 
to the crops of wheat planted for harvest in the calendar years 2008 
through 2012.

SEC. 1603. PAYMENT LIMITATIONS.

    (a) Extension of Limitations.--Sections 1001 and 1001C(a) of the 
Food Security Act of 1985 (7 U.S.C. 1308, 1308-3(a)) are amended by 
striking ``Farm Security and Rural Investment Act of 2002'' each place 
it appears and inserting ``Food, Conservation, and Energy Act of 
2008''.
    (b) Revision of Limitations.--
            (1) Definitions.--Section 1001(a) of the Food Security Act 
        of 1985 (7 U.S.C. 1308(a)) is amended--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``through section 1001F''after ``section'';
                    (B) by striking paragraph (2) and redesignating 
                paragraph (3) as paragraph (5); and
                    (C) by inserting after paragraph (1) the following:
            ``(2) Family member.--The term `family member' means a 
        person to whom a member in the farming operation is related as 
        lineal ancestor, lineal descendant, sibling, spouse, or 
        otherwise by marriage.
            ``(3) Legal entity.--The term `legal entity' means an 
        entity that is created under Federal or State law and that--
                    ``(A) owns land or an agricultural commodity; or
                    ``(B) produces an agricultural commodity.
            ``(4) Person.--The term `person' means a natural person, 
        and does not include a legal entity.''.
            (2) Limitation on direct payments and counter-cyclical 
        payments.--Section 1001 of the Food Security Act of 1985 (7 
        U.S.C. 1308) is amended by striking subsections (b), (c), and 
        (d) and inserting the following:
    ``(b) Limitation on Direct Payments, Counter-Cyclical Payments, and 
ACRE Payments for Covered Commodities (other Than Peanuts).--
            ``(1) Direct payments.--The total amount of direct payments 
        received, directly or indirectly, by a person or legal entity 
        (except a joint venture or a general partnership) for any crop 
        year under subtitle A of title I of the Food, Conservation, and 
        Energy Act of 2008 for 1 or more covered commodities (except 
        for peanuts) may not exceed--
                    ``(A) in the case of a person or legal entity that 
                does not participate in the average crop revenue 
                election program under section 1105 of that Act, 
                $40,000; or
                    ``(B) in the case of a person or legal entity that 
                participates in the average crop revenue election 
                program under section 1105 of that Act, an amount equal 
                to--
                            ``(i) the payment limit specified in 
                        subparagraph (A); less
                            ``(ii) the amount of the reduction in 
                        direct payments under section 1105(a)(1) of 
                        that Act.
            ``(2) Counter-cyclical payments.--In the case of a person 
        or legal entity (except a joint venture or a general 
        partnership) that does not participate in the average crop 
        revenue election program under section 1105 of the Food, 
        Conservation, and Energy Act of 2008, the total amount of 
        counter-cyclical payments received, directly or indirectly, by 
        the person or legal entity for any crop year under subtitle A 
        of title I of that Act for 1 or more covered commodities 
        (except for peanuts) may not exceed $65,000.
            ``(3) ACRE and counter-cyclical payments.--In the case of a 
        person or legal entity (except a joint venture or a general 
        partnership) that participates in the average crop revenue 
        election program under section 1105 of the Food, Conservation, 
        and Energy Act of 2008, the total amount of average crop 
        revenue election payments and counter-cyclical payments 
        received, directly or indirectly, by the person or legal entity 
        for any crop year for 1 or more covered commodities (except for 
        peanuts) may not exceed the sum of--
                    ``(A) $65,000; and
                    ``(B) the amount by which the direct payment 
                limitation is reduced under paragraph (1)(B).
    ``(c) Limitation on Direct Payments, Counter-Cyclical Payments, and 
ACRE Payments for Peanuts.--
            ``(1) Direct payments.--The total amount of direct payments 
        received, directly or indirectly, by a person or legal entity 
        (except a joint venture or a general partnership) for any crop 
        year under subtitle C of title I of the Food, Conservation, and 
        Energy Act of 2008 for peanuts may not exceed--
                    ``(A) in the case of a person or legal entity that 
                does not participate in the average crop revenue 
                election program under section 1105 of that Act, 
                $40,000; or
                    ``(B) in the case of a person or legal entity that 
                participates in the average crop revenue election 
                program under section 1105 of that Act, an amount equal 
                to--
                            ``(i) the payment limit specified in 
                        subparagraph (A); less
                            ``(ii) the amount of the reduction in 
                        direct payments under section 1105(a)(1) of 
                        that Act.
            ``(2) Counter-cyclical payments.--In the case of a person 
        or legal entity (except a joint venture or a general 
        partnership) that does not participate in the average crop 
        revenue election program under section 1105 of the Food, 
        Conservation, and Energy Act of 2008, the total amount of 
        counter-cyclical payments received, directly or indirectly, by 
        the person or legal entity for any crop year under subtitle C 
        of title I of that Act for peanuts may not exceed $65,000.
            ``(3) ACRE and counter-cyclical payments.--In the case of a 
        person or legal entity (except a joint venture or a general 
        partnership) that participates in the average crop revenue 
        election program under section 1105 of the Food, Conservation, 
        and Energy Act of 2008, the total amount of average crop 
        revenue election payments received, directly or indirectly, by 
        the person or legal entity for any crop year for peanuts may 
        not exceed the sum of--
                    ``(A) $65,000; and
                    ``(B) the amount by which the direct payment 
                limitation is reduced under paragraph (1)(B).
    ``(d) Limitation on Applicability.--Nothing in this section 
authorizes any limitation on any benefit associated with the marketing 
assistance loan program or the loan deficiency payment program under 
title I of the Food, Conservation, and Energy Act of 2008.''.
            (3) Direct attribution.--Section 1001 of the Food Security 
        Act of 1985 (7 U.S.C. 1308) is amended--
                    (A) by striking subsections (e) and (f) and 
                redesignating subsection (g) as subsection (h); and
                    (B) by inserting after subsection (d) the 
                following:
    ``(e) Attribution of Payments.--
            ``(1) In general.--In implementing subsections (b) and (c) 
        and a program described in paragraphs (1)(C) and (2)(B) of 
        section 1001D(b), the Secretary shall issue such regulations as 
        are necessary to ensure that the total amount of payments are 
        attributed to a person by taking into account the direct and 
        indirect ownership interests of the person in a legal entity 
        that is eligible to receive the payments.
            ``(2) Payments to a person.--Each payment made directly to 
        a person shall be combined with the pro rata interest of the 
        person in payments received by a legal entity in which the 
        person has a direct or indirect ownership interest unless the 
        payments of the legal entity have been reduced by the pro rata 
        share of the person.
            ``(3) Payments to a legal entity.--
                    ``(A) In general.--Each payment made to a legal 
                entity shall be attributed to those persons who have a 
                direct or indirect ownership interest in the legal 
                entity unless the payment to the legal entity has been 
                reduced by the pro rata share of the person.
                    ``(B) Attribution of payments.--
                            ``(i) Payment limits.--Except as provided 
                        in clause (ii), payments made to a legal entity 
                        shall not exceed the amounts specified in 
                        subsections (b) and (c).
                            ``(ii) Exception for joint ventures and 
                        general partnerships.--Payments made to a joint 
                        venture or a general partnership shall not 
                        exceed, for each payment specified in 
                        subsections (b) and (c), the amount determined 
                        by multiplying the maximum payment amount 
                        specified in subsections (b) and (c) by the 
                        number of persons and legal entities (other 
                        than joint ventures and general partnerships) 
                        that comprise the ownership of the joint 
                        venture or general partnership.
                            ``(iii) Reduction.--Payments made to a 
                        legal entity shall be reduced proportionately 
                        by an amount that represents the direct or 
                        indirect ownership in the legal entity by any 
                        person or legal entity that has otherwise 
                        exceeded the applicable maximum payment 
                        limitation.
            ``(4) 4 levels of attribution for embedded legal 
        entities.--
                    ``(A) In general.--Attribution of payments made to 
                legal entities shall be traced through 4 levels of 
                ownership in legal entities.
                    ``(B) First level.--Any payments made to a legal 
                entity (a first-tier legal entity) that is owned in 
                whole or in part by a person shall be attributed to the 
                person in an amount that represents the direct 
                ownership in the first-tier legal entity by the person.
                    ``(C) Second level.--
                            ``(i) In general.--Any payments made to a 
                        first-tier legal entity that is owned (in whole 
                        or in part) by another legal entity (a second-
                        tier legal entity) shall be attributed to the 
                        second-tier legal entity in proportion to the 
                        ownership of the second-tier legal entity in 
                        the first-tier legal entity.
                            ``(ii) Ownership by a person.--If the 
                        second-tier legal entity is owned (in whole or 
                        in part) by a person, the amount of the payment 
                        made to the first-tier legal entity shall be 
                        attributed to the person in the amount that 
                        represents the indirect ownership in the first-
                        tier legal entity by the person.
                    ``(D) Third and fourth levels.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the Secretary shall attribute 
                        payments at the third and fourth tiers of 
                        ownership in the same manner as specified in 
                        subparagraph (C).
                            ``(ii) Fourth-tier ownership.--If the 
                        fourth-tier of ownership is that of a fourth-
                        tier legal entity and not that of a person, the 
                        Secretary shall reduce the amount of the 
                        payment to be made to the first-tier legal 
                        entity in the amount that represents the 
                        indirect ownership in the first-tier legal 
                        entity by the fourth-tier legal entity.
    ``(f) Special Rules.--
            ``(1) Minor children.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), payments received by a child under 
                the age of 18 shall be attributed to the parents of the 
                child.
                    ``(B) Regulations.--The Secretary shall issue 
                regulations specifying the conditions under which 
                payments received by a child under the age of 18 will 
                not be attributed to the parents of the child.
            ``(2) Marketing cooperatives.--Subsections (b) and (c) 
        shall not apply to a cooperative association of producers with 
        respect to commodities produced by the members of the 
        association that are marketed by the association on behalf of 
        the members of the association but shall apply to the producers 
        as persons.
            ``(3) Trusts and estates.--
                    ``(A) In general.--With respect to irrevocable 
                trusts and estates, the Secretary shall administer this 
                section through section 1001F in such manner as the 
                Secretary determines will ensure the fair and equitable 
                treatment of the beneficiaries of the trusts and 
                estates.
                    ``(B) Irrevocable trust.--
                            ``(i) In general.--In order for a trust to 
                        be considered an irrevocable trust, the terms 
                        of the trust agreement shall not--
                                    ``(I) allow for modification or 
                                termination of the trust by the 
                                grantor;
                                    ``(II) allow for the grantor to 
                                have any future, contingent, or 
                                remainder interest in the corpus of the 
                                trust; or
                                    ``(III) except as provided in 
                                clause (ii), provide for the transfer 
                                of the corpus of the trust to the 
                                remainder beneficiary in less than 20 
                                years beginning on the date the trust 
                                is established.
                            ``(ii) Exception.--Clause (i)(III) shall 
                        not apply in a case in which the transfer is--
                                    ``(I) contingent on the remainder 
                                beneficiary achieving at least the age 
                                of majority; or
                                    ``(II) contingent on the death of 
                                the grantor or income beneficiary.
                    ``(C) Revocable trust.--For the purposes of this 
                section through section 1001F, a revocable trust shall 
                be considered to be the same person as the grantor of 
                the trust.
            ``(4) Cash rent tenants.--
                    ``(A) Definition.--In this paragraph, the term 
                `cash rent tenant' means a person or legal entity that 
                rents land--
                            ``(i) for cash; or
                            ``(ii) for a crop share guaranteed as to 
                        the amount of the commodity to be paid in rent.
                    ``(B) Restriction.--A cash rent tenant who makes a 
                significant contribution of active personal management, 
                but not of personal labor, with respect to a farming 
                operation shall be eligible to receive a payment 
                described in subsection (b) or (c) only if the tenant 
                makes a significant contribution of equipment to the 
                farming operation.
            ``(5) Federal agencies.--
                    ``(A) In general.--Notwithstanding subsection (d), 
                a Federal agency shall not be eligible to receive any 
                payment, benefit, or loan under title I of the Food, 
                Conservation, and Energy Act of 2008 or title XII of 
                this Act.
                    ``(B) Land rental.--A lessee of land owned by a 
                Federal agency may receive a payment described in 
                subsection (b), (c), or (d) if the lessee otherwise 
                meets all applicable criteria.
            ``(6) State and local governments.--
                    ``(A) In general.--Notwithstanding subsection (d), 
                except as provided in subsection (g), a State or local 
                government, or political subdivision or agency of the 
                government, shall not be eligible to receive any 
                payment, benefit, or loan under title I of the Food, 
                Conservation, and Energy Act of 2008 or title XII of 
                this Act.
                    ``(B) Tenants.--A lessee of land owned by a State 
                or local government, or political subdivision or agency 
                of the government, may receive payments described in 
                subsections (b), (c), and (d) if the lessee otherwise 
                meets all applicable criteria.
            ``(7) Changes in farming operations.--
                    ``(A) In general.--In the administration of this 
                section through section 1001F, the Secretary may not 
                approve any change in a farming operation that 
                otherwise will increase the number of persons to which 
                the limitations under this section are applied unless 
                the Secretary determines that the change is bona fide 
                and substantive.
                    ``(B) Family members.--The addition of a family 
                member to a farming operation under the criteria set 
                out in section 1001A shall be considered a bona fide 
                and substantive change in the farming operation.
            ``(8) Death of owner.--
                    ``(A) In general.--If any ownership interest in 
                land or a commodity is transferred as the result of the 
                death of a program participant, the new owner of the 
                land or commodity may, if the person is otherwise 
                eligible to participate in the applicable program, 
                succeed to the contract of the prior owner and receive 
                payments subject to this section without regard to the 
                amount of payments received by the new owner.
                    ``(B) Limitations on prior owner.--Payments made 
                under this paragraph shall not exceed the amount to 
                which the previous owner was entitled to receive under 
                the terms of the contract at the time of the death of 
                the prior owner.
    ``(g) Public Schools.--
            ``(1) In general.--Notwithstanding subsection (f)(6)(A), a 
        State or local government, or political subdivision or agency 
        of the government, shall be eligible, subject to the limitation 
        in paragraph (2), to receive a payment described in subsection 
        (b) or (c) for land owned by the State or local government, or 
        political subdivision or agency of the government, that is used 
        to maintain a public school.
            ``(2) Limitation.--
                    ``(A) In general.--For each State, the total amount 
                of payments described in subsections (b) and (c) that 
                are received collectively by the State and local 
                government and all political subdivisions or agencies 
                of those governments shall not exceed $500,000.
                    ``(B) Exception.--The limitation in subparagraph 
                (A) shall not apply to States with a population of less 
                than 1,500,000.''.
    (c) Repeal of 3-Entity Rule.--Section 1001A of the Food Security 
Act of 1985 (7 U.S.C. 1308-1) is amended--
            (1) in the section heading, by striking ``prevention of 
        creation of entities to qualify as separate persons'' and 
        inserting ``notification of interests''; and
            (2) by striking subsection (a) and inserting the following:
    ``(a) Notification of Interests.--To facilitate administration of 
section 1001 and this section, each person or legal entity receiving 
payments described in subsections (b) and (c) of section 1001 as a 
separate person or legal entity shall separately provide to the 
Secretary, at such times and in such manner as prescribed by the 
Secretary--
            ``(1) the name and social security number of each person, 
        or the name and taxpayer identification number of each legal 
        entity, that holds or acquires an ownership interest in the 
        separate person or legal entity; and
            ``(2) the name and taxpayer identification number of each 
        legal entity in which the person or legal entity holds an 
        ownership interest.''.
    (d) Amendment for Consistency.--Section 1001A of the Food Security 
Act of 1985 (7 U.S.C. 1308-1) is amended by striking subsection (b) and 
inserting the following:
    ``(b) Actively Engaged.--
            ``(1) In general.--To be eligible to receive a payment 
        described in subsection (b) or (c) of section 1001, a person or 
        legal entity shall be actively engaged in farming with respect 
        to a farming operation as provided in this subsection or 
        subsection (c).
            ``(2) Classes actively engaged.--Except as provided in 
        subsections (c) and (d)--
                    ``(A) a person (including a person participating in 
                a farming operation as a partner in a general 
                partnership, a participant in a joint venture, a 
                grantor of a revocable trust, or a participant in a 
                similar entity, as determined by the Secretary) shall 
                be considered to be actively engaged in farming with 
                respect to a farming operation if--
                            ``(i) the person makes a significant 
                        contribution (based on the total value of the 
                        farming operation) to the farming operation 
                        of--
                                    ``(I) capital, equipment, or land; 
                                and
                                    ``(II) personal labor or active 
                                personal management;
                            ``(ii) the person's share of the profits or 
                        losses from the farming operation is 
                        commensurate with the contributions of the 
                        person to the farming operation; and
                            ``(iii) the contributions of the person are 
                        at risk;
                    ``(B) a legal entity that is a corporation, joint 
                stock company, association, limited partnership, 
                charitable organization, or other similar entity 
                determined by the Secretary (including any such legal 
                entity participating in the farming operation as a 
                partner in a general partnership, a participant in a 
                joint venture, a grantor of a revocable trust, or as a 
                participant in a similar legal entity as determined by 
                the Secretary) shall be considered as actively engaged 
                in farming with respect to a farming operation if--
                            ``(i) the legal entity separately makes a 
                        significant contribution (based on the total 
                        value of the farming operation) of capital, 
                        equipment, or land;
                            ``(ii) the stockholders or members 
                        collectively make a significant contribution of 
                        personal labor or active personal management to 
                        the operation; and
                            ``(iii) the standards provided in clauses 
                        (ii) and (iii) of subparagraph (A), as applied 
                        to the legal entity, are met by the legal 
                        entity;
                    ``(C) if a legal entity that is a general 
                partnership, joint venture, or similar entity, as 
                determined by the Secretary, separately makes a 
                significant contribution (based on the total value of 
                the farming operation involved) of capital, equipment, 
                or land, and the standards provided in clauses (ii) and 
                (iii) of subparagraph (A), as applied to the legal 
                entity, are met by the legal entity, the partners or 
                members making a significant contribution of personal 
                labor or active personal management shall be considered 
                to be actively engaged in farming with respect to the 
                farming operation involved; and
                    ``(D) in making determinations under this 
                subsection regarding equipment and personal labor, the 
                Secretary shall take into consideration the equipment 
                and personal labor normally and customarily provided by 
                farm operators in the area involved to produce program 
                crops.
    ``(c) Special Classes Actively Engaged.--
            ``(1) Landowner.--A person or legal entity that is a 
        landowner contributing the owned land to a farming operation 
        shall be considered to be actively engaged in farming with 
        respect to the farming operation if--
                    ``(A) the landowner receives rent or income for the 
                use of the land based on the production on the land or 
                the operating results of the operation; and
                    ``(B) the person or legal entity meets the 
                standards provided in clauses (ii) and (iii) of 
                subsection (b)(2)(A).
            ``(2) Adult family member.--If a majority of the 
        participants in a farming operation are family members, an 
        adult family member shall be considered to be actively engaged 
        in farming with respect to the farming operation if the 
        person--
                    ``(A) makes a significant contribution, based on 
                the total value of the farming operation, of active 
                personal management or personal labor; and
                    ``(B) with respect to such contribution, meets the 
                standards provided in clauses (ii) and (iii) of 
                subsection (b)(2)(A).
            ``(3) Sharecropper.--A sharecropper who makes a significant 
        contribution of personal labor to a farming operation shall be 
        considered to be actively engaged in farming with respect to 
        the farming operation if the contribution meets the standards 
        provided in clauses (ii) and (iii) of subsection (b)(2)(A).
            ``(4) Growers of hybrid seed.--In determining whether a 
        person or legal entity growing hybrid seed under contract shall 
        be considered to be actively engaged in farming, the Secretary 
        shall not take into consideration the existence of a hybrid 
        seed contract.
            ``(5) Custom farming services.--
                    ``(A) In general.--A person or legal entity 
                receiving custom farming services shall be considered 
                separately eligible for payment limitation purposes if 
                the person or legal entity is actively engaged in 
                farming based on subsection (b)(2) or paragraphs (1) 
                through (4) of this subsection.
                    ``(B) Prohibition.--No other rules with respect to 
                custom farming shall apply.
            ``(6) Spouse.--If 1 spouse (or estate of a deceased spouse) 
        is determined to be actively engaged, the other spouse shall be 
        determined to have met the requirements of subsection 
        (b)(2)(A)(i)(II).
    ``(d) Classes Not Actively Engaged.--
            ``(1) Cash rent landlord.--A landlord contributing land to 
        a farming operation shall not be considered to be actively 
        engaged in farming with respect to the farming operation if the 
        landlord receives cash rent, or a crop share guaranteed as to 
        the amount of the commodity to be paid in rent, for the use of 
        the land.
            ``(2) Other persons and legal entities.--Any other person 
        or legal entity that the Secretary determines does not meet the 
        standards described in subsections (b)(2) and (c) shall not be 
        considered to be actively engaged in farming with respect to a 
        farming operation.''.
    (e) Denial of Program Benefits.--Section 1001B of the Food Security 
Act of 1985 (7 U.S.C. 1308-2) is amended to read as follows:

``SEC. 1001B. DENIAL OF PROGRAM BENEFITS.

    ``(a) 2-Year Denial of Program Benefits.--A person or legal entity 
shall be ineligible to receive payments specified in subsections (b) 
and (c) of section 1001 for the crop year, and the succeeding crop 
year, in which the Secretary determines that the person or legal 
entity--
            ``(1) failed to comply with section 1001A(b) and adopted or 
        participated in adopting a scheme or device to evade the 
        application of section 1001, 1001A, or 1001C; or
            ``(2) intentionally concealed the interest of the person or 
        legal entity in any farm or legal entity engaged in farming.
    ``(b) Extended Ineligibility.--If the Secretary determines that a 
person or legal entity, for the benefit of the person or legal entity 
or the benefit of any other person or legal entity, has knowingly 
engaged in, or aided in the creation of a fraudulent document, failed 
to disclose material information relevant to the administration of 
sections 1001 through 1001F, or committed other equally serious actions 
(as identified in regulations issued by the Secretary), the Secretary 
may for a period not to exceed 5 crop years deny the issuance of 
payments to the person or legal entity.
    ``(c) Pro Rata Denial.--
            ``(1) In general.--Payments otherwise owed to a person or 
        legal entity described in subsections (a) or (b) shall be 
        denied in a pro rata manner based on the ownership interest of 
        the person or legal entity in a farm.
            ``(2) Cash rent tenant.--Payments otherwise payable to a 
        person or legal entity shall be denied in a pro rata manner if 
        the person or legal entity is a cash rent tenant on a farm 
        owned or under the control of a person or legal entity with 
        respect to which a determination has been made under subsection 
        (a) or (b).
    ``(d) Joint and Several Liability.--Any legal entity (including 
partnerships and joint ventures) and any member of any legal entity 
determined to have knowingly participated in a scheme or device to 
evade, or that has the purpose of evading, sections 1001, 1001A, or 
1001C shall be jointly and severally liable for any amounts that are 
payable to the Secretary as the result of the scheme or device 
(including amounts necessary to recover those amounts).
    ``(e) Release.--The Secretary may partially or fully release from 
liability any person or legal entity who cooperates with the Secretary 
in enforcing sections 1001, 1001A, and 1001C, and this section.''.
    (f) Conforming Amendment to Apply Direct Attribution to NAP.--
            (1) In general.--Section 196(i) of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)) is 
        amended--
                    (A) by striking paragraphs (1) and (2) and 
                inserting the following:
            ``(1) Definitions.--In this subsection, the terms `legal 
        entity' and `person' have the meanings given those terms in 
        section 1001(a) of the Food Security Act of 1985 (7 U.S.C. 
        1308(a)).
            ``(2) Payment limitation.--The total amount of payments 
        received, directly or indirectly, by a person or legal entity 
        (excluding a joint venture or general partnership) for any crop 
        year may not exceed $100,000.'';
                    (B) by striking paragraph (4) and inserting the 
                following:
            ``(4) Adjusted gross income limitation.--A person or legal 
        entity that has an average adjusted gross income in excess of 
        the average adjusted gross income limitation applicable under 
        section 1001D(b)(1)(A) of the Food Security Act of 1985 (7 
        U.S.C. 1308-3a(b)(1)(A)), or a successor provision, shall not 
        be eligible to receive noninsured crop disaster assistance 
        under this section.''; and
                    (C) in paragraph (5)--
                            (i) by striking ``necessary to ensure'' and 
                        inserting ``necessary--
                    ``(A) to ensure''; and
                            (ii) by striking ``this subsection.'' and 
                        inserting the following: ``this subsection; and
                    ``(B) to ensure that payments under this section 
                are attributed to a person or legal entity (excluding a 
                joint venture or general partnership) in accordance 
                with the terms and conditions of sections 1001 through 
                1001D of the Food Security Act of 1985 (7 U.S.C. 1308 
                et seq.), as determined by the Secretary.''.
            (2) Transition.--Section 196(i) of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)), as in 
        effect on September 30, 2007, shall apply with respect to the 
        2007 and 2008 crops of any eligible crop.
    (g) Conforming Amendments.--
            (1) Section 1009(e) of the Food Security Act of 1985 (7 
        U.S.C. 1308a(e)) is amended in the second sentence by striking 
        ``of $50,000''.
            (2) Section 609(b)(1) of the Emergency Livestock Feed 
        Assistance Act of 1988 (7 U.S.C. 1471g(b)(1)) is amended by 
        inserting ``(before the amendment made by section 1703(a) of 
        the Food, Conservation, and Energy Act of 2008)'' after 
        ``1985''.
            (3) Section 524(b)(3) of the Federal Crop Insurance Act (7 
        U.S.C. 1524(b)(3)) is amended by inserting ``(before the 
        amendment made by section 1703(a) of the Food, Conservation, 
        and Energy Act of 2008)'' after ``1308(5)))''.
            (4) Section 10204(c)(1) of the Farm Security and Rural 
        Investment Act of 2002 (7 U.S.C. 8204(c)(1)) is amended by 
        inserting ``(before the amendment made by section 1703(a) of 
        the Food, Conservation, and Energy Act of 2008)'' after 
        ``1308)''.
            (5) Section 1271(c)(3)(A) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (16 U.S.C. 2106a(c)(3)(A)) 
        is amended by inserting ``(before the amendment made by section 
        1703(a) of the Food, Conservation, and Energy Act of 2008)'' 
        after ``1308)''.
            (6) Section 291(2) of the Trade Act of 1974 (19 U.S.C. 
        2401(2)) is amended by inserting ``(before the amendment made 
        by section 1703(a) of the Food, Conservation, and Energy Act of 
        2008)'' before the period at the end.
    (h) Transition.--Section 1001, 1001A, and 1001B of the Food 
Security Act of 1985 (7 U.S.C. 1308, 1308-1, 1308-2), as in effect on 
September 30, 2007, shall continue to apply with respect to the 2007 
and 2008 crops of any covered commodity or peanuts.

SEC. 1604. ADJUSTED GROSS INCOME LIMITATION.

    (a) In General.--Section 1001D of the Food Security Act of 1985 (7 
U.S.C. 1308-3a(e)) is amended to read as follows:

``SEC. 1001D. ADJUSTED GROSS INCOME LIMITATION.

    ``(a) Definitions.--
            ``(1) In general.--In this section:
                    ``(A) Average adjusted gross income.--The term 
                `average adjusted gross income', with respect to a 
                person or legal entity, means the average of the 
                adjusted gross income or comparable measure of the 
                person or legal entity over the 3 taxable years 
                preceding the most immediately preceding complete 
                taxable year, as determined by the Secretary.
                    ``(B) Average adjusted gross farm income.--The term 
                `average adjusted gross farm income', with respect to a 
                person or legal entity, means the average of the 
                portion of adjusted gross income of the person or legal 
                entity that is attributable to activities related to 
                farming, ranching, or forestry for the 3 taxable years 
                described in subparagraph (A), as determined by the 
                Secretary in accordance with subsection (c).
                    ``(C) Average adjusted gross nonfarm income.--The 
                term `average adjusted gross nonfarm income', with 
                respect to a person or legal entity, means the 
                difference between--
                            ``(i) the average adjusted gross income of 
                        the person or legal entity; and
                            ``(ii) the average adjusted gross farm 
                        income of the person or legal entity.
            ``(2) Special rules for certain persons and legal 
        entities.--In the case of a legal entity that is not required 
        to file a Federal income tax return or a person or legal entity 
        that did not have taxable income in 1 or more of the taxable 
        years used to determine the average under subparagraph (A) or 
        (B) of paragraph (1), the Secretary shall provide, by 
        regulation, a method for determining the average adjusted gross 
        income, the average adjusted gross farm income, and the average 
        adjusted gross nonfarm income of the person or legal entity for 
        purposes of this section.
            ``(3) Allocation of income.--On the request of any person 
        filing a joint tax return, the Secretary shall provide for the 
        allocation of average adjusted gross income, average adjusted 
        gross farm income, and average adjusted gross nonfarm income 
        among the persons filing the return if--
                    ``(A) the person provides a certified statement by 
                a certified public accountant or attorney that 
                specifies the method by which the average adjusted 
                gross income, average adjusted gross farm income, and 
                average adjusted gross nonfarm income would have been 
                declared and reported had the persons filed 2 separate 
                returns; and
                    ``(B) the Secretary determines that the method 
                described in the statement is consistent with the 
                information supporting the filed joint tax return.
    ``(b) Limitations.--
            ``(1) Commodity programs.--
                    ``(A) Nonfarm limitation.--Notwithstanding any 
                other provision of law, a person or legal entity shall 
                not be eligible to receive any benefit described in 
                subparagraph (C) during a crop, fiscal, or program 
                year, as appropriate, if the average adjusted gross 
                nonfarm income of the person or legal entity exceeds 
                $500,000.
                    ``(B) Farm limitation.--Notwithstanding any other 
                provision of law, a person or legal entity shall not be 
                eligible to receive a direct payment under subtitle A 
                or C of title I of the Food, Conservation, and Energy 
                Act of 2008 during a crop year, if the average adjusted 
                gross farm income of the person or legal entity exceeds 
                $750,000.
                    ``(C) Covered benefits.--Subparagraph (A) applies 
                with respect to the following:
                            ``(i) A direct payment or counter-cyclical 
                        payment under subtitle A or C of title I of the 
                        Food, Conservation, and Energy Act of 2008 or 
                        an average crop revenue election payment under 
                        subtitle A of title I of that Act.
                            ``(ii) A marketing loan gain or loan 
                        deficiency payment under subtitle B or C of 
                        title I of the Food, Conservation, and Energy 
                        Act of 2008.
                            ``(iii) A payment or benefit under section 
                        196 of the Federal Agriculture Improvement and 
                        Reform Act of 1996 (7 U.S.C. 7333).
                            ``(iv) A payment or benefit under section 
                        1506 of the Food, Conservation, and Energy Act 
                        of 2008.
                            ``(v) A payment or benefit under title IX 
                        of the Trade Act of 1974 or subtitle B of the 
                        Federal Crop Insurance Act.
            ``(2) Conservation programs.--
                    ``(A) Limits.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of law, except as provided in 
                        clause (ii), a person or legal entity shall not 
                        be eligible to receive any benefit described in 
                        subparagraph (B) during a crop, fiscal, or 
                        program year, as appropriate, if the average 
                        adjusted gross nonfarm income of the person or 
                        legal entity exceeds $1,000,000, unless not 
                        less than 66.66 percent of the average adjusted 
                        gross income of the person or legal entity is 
                        average adjusted gross farm income.
                            ``(ii) Exception.--The Secretary may waive 
                        the limitation established under clause (i) on 
                        a case-by-case basis if the Secretary 
                        determines that environmentally sensitive land 
                        of special significance would be protected.
                    ``(B) Covered benefits.--Subparagraph (A) applies 
                with respect to the following:
                            ``(i) A payment or benefit under title XII 
                        of this Act.
                            ``(ii) A payment or benefit under title II 
                        of the Farm Security and Rural Investment Act 
                        of 2002 (Public Law 107-171; 116 Stat. 223) or 
                        title II of the Food, Conservation, and Energy 
                        Act of 2008.
                            ``(iii) A payment or benefit under section 
                        524(b) of the Federal Crop Insurance Act (7 
                        U.S.C. 1524(b)).
    ``(c) Income Determination.--
            ``(1) In general.--In determining the average adjusted 
        gross farm income of a person or legal entity, the Secretary 
        shall include income or benefits derived from or related to--
                    ``(A) the production of crops, including specialty 
                crops (as defined in section 3 of the Specialty Crops 
                Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public 
                Law 108-465)) and unfinished raw forestry products;
                    ``(B) the production of livestock (including 
                cattle, elk, reindeer, bison, horses, deer, sheep, 
                goats, swine, poultry, fish, and other aquacultural 
                products used for food, honeybees, and other animals 
                designated by the Secretary) and products produced by, 
                or derived from, livestock;
                    ``(C) the production of farm-based renewable energy 
                (as defined in section 9001 of the Farm Security and 
                Rural Investment Act of 2002 (7 U.S.C. 8101));
                    ``(D) the sale, including the sale of easements and 
                development rights, of farm, ranch, or forestry land, 
                water or hunting rights, or environmental benefits;
                    ``(E) the rental or lease of land or equipment used 
                for farming, ranching, or forestry operations, 
                including water or hunting rights;
                    ``(F) the processing (including packing), storing 
                (including shedding), and transporting of farm, ranch, 
                and forestry commodities, including renewable energy;
                    ``(G) the feeding, rearing, or finishing of 
                livestock;
                    ``(H) the sale of land that has been used for 
                agriculture;
                    ``(I) payments or other benefits received under any 
                program authorized under title I of the Farm Security 
                and Rural Investment Act of 2002 (7 U.S.C. 7901 et 
                seq.) or title I of the Food, Conservation, and Energy 
                Act of 2008;
                    ``(J) payments or other benefits received under any 
                program authorized under title XII of this Act, title 
                II of the Farm Security and Rural Investment Act of 
                2002 (Public Law 107-171; 116 Stat. 223), or title II 
                of the Food, Conservation, and Energy Act of 2008;
                    ``(K) payments or other benefits received under 
                section 196 of the Federal Agriculture Improvement and 
                Reform Act of 1996 (7 U.S.C. 7333);
                    ``(L) payments or other benefits received under 
                title IX of the Trade Act of 1974 or subtitle B of the 
                Federal Crop Insurance Act;
                    ``(M) risk management practices, including benefits 
                received under a program authorized under the Federal 
                Crop Insurance Act (7 U.S.C. 1501 et seq.) (including a 
                catastrophic risk protection plan offered under section 
                508(b) of that Act (7 U.S.C. 1508(b))); and
                    ``(N) any other activity related to farming, 
                ranching, or forestry, as determined by the Secretary.
            ``(2) Income derived from farming, ranching, or forestry.--
        In determining the average adjusted gross farm income of a 
        person or legal entity, in addition to the inclusions described 
        in paragraph (1), the Secretary shall include any income 
        reported on the Schedule F or other schedule used by the person 
        or legal entity to report income from farming, ranching, or 
        forestry operations to the Internal Revenue Service, to the 
        extent such income is not already included under paragraph (1).
            ``(3) Special rule.--If not less than 66.66 percent of the 
        average adjusted gross income of a person or legal entity is 
        derived from farming, ranching, or forestry operations 
        described in paragraphs (1) and (2), in determining the average 
        adjusted gross farm income of the person or legal entity, the 
        Secretary shall also include--
                    ``(A) the sale of equipment to conduct farm, ranch, 
                or forestry operations; and
                    ``(B) the provision of production inputs and 
                services to farmers, ranchers, foresters, and farm 
                operations.
    ``(d) Enforcement.--
            ``(1) In general.--To comply with subsection (b), at least 
        once every 3 years a person or legal entity shall provide to 
        the Secretary--
                    ``(A) a certification by a certified public 
                accountant or another third party that is acceptable to 
                the Secretary that the average adjusted gross income, 
                average adjusted gross farm income, and average 
                adjusted gross nonfarm income of the person or legal 
                entity does not exceed the applicable limitation 
                specified in that subsection; or
                    ``(B) information and documentation regarding the 
                average adjusted gross income, average adjusted gross 
                farm income, and average adjusted gross nonfarm income 
                of the person or legal entity through other procedures 
                established by the Secretary.
            ``(2) Denial of program benefits.--If the Secretary 
        determines that a person or legal entity has failed to comply 
        with this section, the Secretary shall deny the issuance of 
        applicable payments and benefits specified in paragraphs (1)(C) 
        and (2)(B) of subsection (b) to the person or legal entity, 
        under similar terms and conditions as described in section 
        1001B.
            ``(3) Audit.--The Secretary shall establish statistically 
        valid procedures under which the Secretary shall conduct 
        targeted audits of such persons or legal entities as the 
        Secretary determines are most likely to exceed the limitations 
        under subsection (b).
    ``(e) Commensurate Reduction.--In the case of a payment or benefit 
described in paragraphs (1)(C) and (2)(B) of subsection (b) made in a 
crop, program, or fiscal year, as appropriate, to an entity, general 
partnership, or joint venture, the amount of the payment or benefit 
shall be reduced by an amount that is commensurate with the direct and 
indirect ownership interest in the entity, general partnership, or 
joint venture of each person who has an average adjusted gross income, 
average adjusted gross farm income, or average adjusted gross nonfarm 
income in excess of the applicable limitation specified in subsection 
(b).
    ``(f) Effective Period.--This section shall apply only during the 
2009 through 2012 crop, program, or fiscal years, as appropriate.''.
    (b) Transition.--Section 1001D of the Food Security Act of 1985 (7 
U.S.C. 1308-3a), as in effect on September 30, 2007, shall apply with 
respect to the 2007 and 2008 crop, fiscal, or program year, as 
appropriate, for each program described in paragraphs (1)(C) and (2)(B) 
of subsection (b) of that section (as amended by subsection (a)).

SEC. 1605. AVAILABILITY OF QUALITY INCENTIVE PAYMENTS FOR COVERED 
              OILSEED PRODUCERS.

    (a) Incentive Payments Required.--Subject to subsection (b) and the 
availability of appropriations under subsection (h), the Secretary 
shall use funds made available under subsection (h) to provide quality 
incentive payments for the production of oilseeds with specialized 
traits that enhance human health, as determined by the Secretary.
    (b) Covered Oilseeds.--The Secretary shall make payments under this 
section only for the production of an oilseed variety that has, as 
determined by the Secretary--
            (1) been demonstrated to improve the health profile of the 
        oilseed for use in human consumption by--
                    (A) reducing or eliminating the need to partially 
                hydrogenate the oil derived from the oilseed for use in 
                human consumption; or
                    (B) adopting new technology traits; and
            (2) 1 or more impediments to commercialization.
    (c) Request for Proposals.--
            (1) Issuance.--If funds are made available to carry out 
        this section for a crop year, the Secretary shall issue a 
        request for proposals for payments under this section.
            (2) Multiyear proposals.--A proponent may submit a 
        multiyear proposal for payments under this section.
            (3) Content of proposals.--A proposal for payments under 
        this section shall include a description of--
                    (A) how use of the oilseed enhances human health;
                    (B) the impediments to commercial use of the 
                oilseed;
                    (C) each oilseed variety described in subsection 
                (b) and the value of the oilseed variety as a matter of 
                public policy;
                    (D) a range for the base price and premiums per 
                bushel or hundredweight to be paid to producers;
                    (E) a per bushel or hundredweight amount of 
                incentive payments requested for each year under this 
                section that does not exceed \1/3\ of the total premium 
                offered for any year;
                    (F) the period of time, not to exceed 4 years, 
                during which incentive payments are to be provided to 
                producers; and
                    (G) the targeted total quantity of production and 
                estimated acres needed to produce the targeted quantity 
                for each year under this section.
    (d) Contracts for Production.--
            (1) In general.--The Secretary shall approve successful 
        proposals submitted under subsection (c) on a timely basis.
            (2) Timing of payments.--The Secretary shall make payments 
        to producers under this section after the Secretary receives 
        documentation that the premium required under a contract has 
        been paid to covered producers.
    (e) Administration.--
            (1) In general.--If funding provided for a crop year is not 
        fully allocated under the initial request for proposals under 
        subsection (c), the Secretary shall issue additional requests 
        for proposals for subsequent crop years under this section.
            (2) Prorated payments.--If funding provided for a crop year 
        is less than the amount otherwise approved by the Secretary or 
        for which approval is sought, the Secretary shall prorate the 
        payments or approvals in a manner determined by the Secretary 
        so that the total payments do not exceed the funding level.
    (f) Proprietary Information.--The Secretary shall protect 
proprietary information provided to the Secretary for the purpose of 
administering this section.
    (g) Program Compliance and Penalties.--
            (1) Guarantee.--The proponent, if approved, shall be 
        required to guarantee that the oilseed on which a payment is 
        made by the Secretary under this section is used for human 
        consumption as described in the proposal, as approved by the 
        Secretary.
            (2) Noncompliance.--If oilseeds on which a payment is made 
        by the Secretary under this section are not actually used for 
        the purpose the payment is made, the proponent shall be 
        required to pay to the Secretary an amount equal to, as 
        determined by the Secretary--
                    (A) in the case of an inadvertent failure, twice 
                the amount of the payment made by the Secretary under 
                this section to the producer of the oilseeds; and
                    (B) in any other case, up to twice the full value 
                of the oilseeds involved.
            (3) Documentation.--The Secretary may require such 
        assurances and documentation as may be needed to enforce the 
        guarantee.
            (4) Additional penalties.--
                    (A) In general.--In addition to payments required 
                under paragraph (2), the Secretary may impose penalties 
                on additional persons that use oilseeds the use of 
                which is restricted under this section for a purpose 
                other than the intended use.
                    (B) Amount.--The amount of a penalty under this 
                paragraph shall--
                            (i) be in an amount determined appropriated 
                        by the Secretary; but
                            (ii) not to exceed twice the full value of 
                        the oilseeds.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2009 through 2012.

SEC. 1606. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

    Section 164 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7284) is amended by striking ``and title I of the 
Farm Security and Rural Investment Act of 2002'' each place it appears 
and inserting ``title I of the Farm Security and Rural Investment Act 
of 2002, and title I of the Food, Conservation, and Energy Act of 
2008''.

SEC. 1607. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY REGARDING 
              LOANS.

    Section 166 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7286) is amended--
            (1) by striking ``and subtitle B and C of title I of the 
        Farm Security and Rural Investment Act of 2002'' each place it 
        appears and inserting ``, title I of the Farm Security and 
        Rural Investment Act of 2002, and title I of the Food, 
        Conservation, and Energy Act of 2008''; and
            (2) in subsection (c), by adding at the end the following:
            ``(3) Termination of authority.--The authority to carry out 
        paragraph (1) terminates effective ending with the 2009 crop 
        year.''.

SEC. 1608. ASSIGNMENT OF PAYMENTS.

    (a) In General.--The provisions of section 8(g) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), relating 
to assignment of payments, shall apply to payments made under this 
title.
    (b) Notice.--The producer making the assignment, or the assignee, 
shall provide the Secretary with notice, in such manner as the 
Secretary may require, of any assignment made under this section.

SEC. 1609. TRACKING OF BENEFITS.

    As soon as practicable after the date of enactment of this Act, the 
Secretary may track the benefits provided, directly or indirectly, to 
individuals and entities under titles I and II and the amendments made 
by those titles.

SEC. 1610. GOVERNMENT PUBLICATION OF COTTON PRICE FORECASTS.

    Section 15 of the Agricultural Marketing Act (12 U.S.C. 1141j) is 
amended--
            (1) by striking subsection (d); and
            (2) by redesignating subsections (e) through (g) as 
        subsections (d) through (f), respectively.

SEC. 1611. PREVENTION OF DECEASED INDIVIDUALS RECEIVING PAYMENTS UNDER 
              FARM COMMODITY PROGRAMS.

    (a) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall promulgate regulations 
that--
            (1) describe the circumstances under which, in order to 
        allow for the settlement of estates and for related purposes, 
        payments may be issued in the name of a deceased individual; 
        and
            (2) preclude the issuance of payments to, and on behalf of, 
        deceased individuals that were not eligible for the payments.
    (b) Coordination.--At least twice each year, the Secretary shall 
reconcile the social security numbers of all individuals who receive 
payments under this title, whether directly or indirectly, with the 
Social Security Administration to determine if the individuals are 
alive.

SEC. 1612. HARD WHITE WHEAT DEVELOPMENT PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible hard white wheat seed.--The term ``eligible 
        hard white wheat seed'' means hard white wheat seed that, as 
        determined by the Secretary, is--
                    (A) certified;
                    (B) of a variety that is suitable for the State in 
                which the seed will be planted;
                    (C) rated at least superior with respect to 
                quality; and
                    (D) specifically approved under a seed 
                establishment program established by the State 
                Department of Agriculture and the State Wheat 
                Commission of the 1 or more States in which the seed 
                will be planted.
            (2) Program.--The term ``program'' means the hard white 
        wheat development program established under subsection (b)(1).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture, in consultation with the State Departments of 
        Agriculture and the State Wheat Commissions of the States in 
        regions in which hard white wheat is produced, as determined by 
        the Secretary.
    (b) Establishment.--
            (1) In general.--Subject to the availability of 
        appropriations, the Secretary shall establish a hard white 
        wheat development program in accordance with paragraph (2) to 
        promote the establishment of hard white wheat as a viable 
        market class of wheat in the United States by encouraging 
        production of at least 240,000,000 bushels of hard white wheat 
        by 2012.
            (2) Payments.--
                    (A) In general.--Subject to subparagraphs (B) and 
                (C) and subsection (c), if funds are made available for 
                any of the 2009 through 2012 crops of hard white wheat, 
                the Secretary shall make available incentive payments 
                to producers of those crops.
                    (B) Acreage limitation.--The Secretary shall carry 
                out subparagraph (A) subject to a regional limitation 
                determined by the Secretary on the number of acres for 
                which payments may be received that takes into account 
                planting history and potential planting, but does not 
                exceed a total of 2,900,000 acres or the equivalent 
                volume of production based on a yield of 50 bushels per 
                acre.
                    (C) Payment limitations.--Payments to producers on 
                a farm described in subparagraph (A) shall be--
                            (i) in an amount that is not less than 
                        $0.20 per bushel; and
                            (ii) in an amount that is not less than 
                        $2.00 per acre for planting eligible hard white 
                        wheat seed.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $35,000,000 for the period of 
fiscal years 2009 through 2012.

SEC. 1613. DURUM WHEAT QUALITY PROGRAM.

    (a) In General.--Subject to the availability of funds under 
subsection (c), the Secretary shall provide compensation to producers 
of durum wheat in an amount not to exceed 50 percent of the actual cost 
of fungicides applied to a crop of durum wheat of the producers to 
control Fusarium head blight (wheat scab) on acres certified to have 
been planted to Durum wheat in a crop year.
    (b) Insufficient Funds.--If the total amount of funds appropriated 
for a fiscal year under subsection (c) are insufficient to fulfill all 
eligible requests for compensation under this section, the Secretary 
shall prorate the compensation payments in a manner determined by the 
Secretary to be equitable.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2009 through 2012.

SEC. 1614. STORAGE FACILITY LOANS.

    (a) In General.--As soon as practicable after the date of enactment 
of this Act, the Secretary shall establish a storage facility loan 
program to provide funds for producers of grains, oilseeds, pulse 
crops, hay, renewable biomass, and other storable commodities (other 
than sugar), as determined by the Secretary, to construct or upgrade 
storage and handling facilities for the commodities.
    (b) Eligible Producers.--A storage facility loan under this section 
shall be made available to any producer described in subsection (a) 
that, as determined by the Secretary--
            (1) has a satisfactory credit history;
            (2) has a need for increased storage capacity; and
            (3) demonstrates an ability to repay the loan.
    (c) Term of Loans.--A storage facility loan under this section 
shall have a maximum term of 12 years.
    (d) Loan Amount.--The maximum principal amount of a storage 
facility loan under this section shall be $500,000.
    (e) Loan Disbursements.--The Secretary shall provide for 1 partial 
disbursement of loan principal and 1 final disbursement of loan 
principal, as determined to be appropriate and subject to acceptable 
documentation, to facilitate the purchase and construction of eligible 
facilities.
    (f) Loan Security.--Approval of a storage facility loan under this 
section shall--
            (1) require the borrower to provide loan security to the 
        Secretary, in the form of--
                    (A) a lien on the real estate parcel on which the 
                storage facility is located; or
                    (B) such other security as is acceptable to the 
                Secretary;
            (2) under such rules and regulations as the Secretary may 
        prescribe, not require a severance agreement from the holder of 
        any prior lien on the real estate parcel on which the storage 
        facility is located, if the borrower--
                    (A) agrees to increase the down payment on the 
                storage facility by an amount determined appropriate by 
                the Secretary; or
                    (B) provides other security acceptable to the 
                Secretary; and
            (3) allow a borrower, upon the approval of the Secretary, 
        to define a subparcel of real estate as security for the 
        storage facility loan if the subparcel is--
                    (A) of adequate size and value to adequately secure 
                the loan; and
                    (B) not subject to any other liens or mortgages 
                that are superior to the lien interest of the Commodity 
                Credit Corporation.

SEC. 1615. STATE, COUNTY, AND AREA COMMITTEES.

    Section 8(b)(5)(B)(ii) of the Soil Conservation and Domestic 
Allotment Act (16 U.S.C. 590h(b)(5)(B)(ii)) is amended--
            (1) by redesignating subclauses (I) and (II) as items (aa) 
        and (bb), respectively, and indenting appropriately;
            (2) in the matter preceding item (aa) (as redesignated by 
        paragraph (1)), by striking ``A committee established'' and 
        inserting the following:
                                    ``(I) In general.--Except as 
                                provided in subclause (II), a committee 
                                established''; and
            (3) by adding at the end the following:
                                    ``(II) Combination or consolidation 
                                of areas.--A committee established by 
                                combining or consolidating 2 or more 
                                county or area committees shall consist 
                                of not fewer than 3 nor more than 11 
                                members that--
                                            ``(aa) are fairly 
                                        representative of the 
                                        agricultural producers within 
                                        the area covered by the county, 
                                        area, or local committee; and
                                            ``(bb) are elected by the 
                                        agricultural producers that 
                                        participate or cooperate in 
                                        programs administered within 
                                        the area under the jurisdiction 
                                        of the county, area, or local 
                                        committee.
                                    ``(III) Representation of socially 
                                disadvantaged farmers and ranchers.--
                                The Secretary shall develop procedures 
                                to maintain representation of socially 
                                disadvantaged farmers and ranchers on 
                                combined or consolidated committees.
                                    ``(IV) Eligibility for 
                                membership.--Notwithstanding any other 
                                producer eligibility requirements for 
                                service on county or area committees, 
                                if a county or area is consolidated or 
                                combined, a producer shall be eligible 
                                to serve only as a member of the county 
                                or area committee that the producer 
                                elects to administer the farm records 
                                of the producer.''.

SEC. 1616. PROHIBITION ON CHARGING CERTAIN FEES.

    Public Law 108-470 (7 U.S.C. 7416a) is amended--
            (1) in subsection (a), by striking ``may'' and inserting 
        ``shall''; and
            (2) by adding at the end the following:
    ``(c) Prohibition on Charging Certain Fees.--The Secretary may not 
charge any fees or related costs for the collection of commodity 
assessments pursuant to this Act.''.

SEC. 1617. SIGNATURE AUTHORITY.

    (a) In General.--In carrying out this title and title II and 
amendments made by those titles, if the Secretary approves a document, 
the Secretary shall not subsequently determine the document is 
inadequate or invalid because of the lack of authority of any person 
signing the document on behalf of the applicant or any other 
individual, entity, general partnership, or joint venture, or the 
documents relied upon were determined inadequate or invalid, unless the 
person signing the program document knowingly and willfully falsified 
the evidence of signature authority or a signature.
    (b) Affirmation.--
            (1) In general.--Nothing in this section prohibits the 
        Secretary from asking a proper party to affirm any document 
        that otherwise would be considered approved under subsection 
        (a).
            (2) No retroactive effect.--A denial of benefits based on a 
        lack of affirmation under paragraph (1) shall not be 
        retroactive with respect to third-party producers who were not 
        the subject of the erroneous representation of authority, if 
        the third-party producers--
                    (A) relied on the prior approval by the Secretary 
                of the documents in good faith; and
                    (B) substantively complied with all program 
                requirements

SEC. 1618. MODERNIZATION OF FARM SERVICE AGENCY.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary shall transmit to the Committee on Agriculture and the 
Committee on Appropriations of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry and the Committee on 
Appropriations of the Senate a report prepared by a third party that 
describes--
            (1) the data processing and information technology 
        challenges experienced in local offices of the Farm Service 
        Agency;
            (2) the impact of those challenges on service to producers, 
        on efficiency of personnel, and on implementation of this Act;
            (3) the need for information technology system upgrades of 
        the Farm Service Agency relative to other agencies of the 
        Department of Agriculture;
            (4) the detailed plan needed to fulfill the needs of the 
        Department that are identified in paragraph (3), including 
        hardware, software, and infrastructure requirements;
            (5) the estimated cost and timeframe for long-term 
        modernization and stabilization of Farm Service Agency 
        information technology systems;
            (6) the benefits associated with such modernization and 
        stabilization; and
            (7) an evaluation of the existence of appropriate oversight 
        within the Department to ensure that funds needed for systems 
        upgrades can be appropriately managed.

SEC. 1619. INFORMATION GATHERING.

    (a) Geospatial Systems.--The Secretary shall ensure that all the 
geospatial data of the agencies of the Department of Agriculture are 
portable and standardized.
    (b) Limitation on Disclosures.--
            (1) Definition of agricultural operation.--In this 
        subsection, the term ``agricultural operation'' includes the 
        production and marketing of agricultural commodities and 
        livestock.
            (2) Prohibition.--Except as provided in paragraphs (3) and 
        (4), the Secretary, any officer or employee of the Department 
        of Agriculture, or any contractor or cooperator of the 
        Department, shall not disclose--
                    (A) information provided by an agricultural 
                producer or owner of agricultural land concerning the 
                agricultural operation, farming or conservation 
                practices, or the land itself, in order to participate 
                in programs of the Department; or
                    (B) geospatial information otherwise maintained by 
                the Secretary about agricultural land or operations for 
                which information described in subparagraph (A) is 
                provided.
            (3) Authorized disclosures.--
                    (A) Limited release of information.--If the 
                Secretary determines that the information described in 
                paragraph (2) will not be subsequently disclosed except 
                in accordance with paragraph (4), the Secretary may 
                release or disclose the information to a person or 
                Federal, State, local, or tribal agency working in 
                cooperation with the Secretary in any Department 
                program--
                            (i) when providing technical or financial 
                        assistance with respect to the agricultural 
                        operation, agricultural land, or farming or 
                        conservation practices; or
                            (ii) when responding to a disease or pest 
                        threat to agricultural operations, if the 
                        Secretary determines that a threat to 
                        agricultural operations exists and the 
                        disclosure of information to a person or 
                        cooperating government entity is necessary to 
                        assist the Secretary in responding to the 
                        disease or pest threat as authorized by law.
            (4) Exceptions.--Nothing in this subsection affects--
                    (A) the disclosure of payment information 
                (including payment information and the names and 
                addresses of recipients of payments) under any 
                Department program that is otherwise authorized by law;
                    (B) the disclosure of information described in 
                paragraph (2) if the information has been transformed 
                into a statistical or aggregate form without naming 
                any--
                            (i) individual owner, operator, or 
                        producer; or
                            (ii) specific data gathering site; or
                    (C) the disclosure of information described in 
                paragraph (2) pursuant to the consent of the 
                agricultural producer or owner of agricultural land.
            (5) Condition of other programs.--The participation of the 
        agricultural producer or owner of agricultural land in, or 
        receipt of any benefit under, any program administered by the 
        Secretary may not be conditioned on the consent of the 
        agricultural producer or owner of agricultural land under 
        paragraph (4)(C).
            (6) Waiver of privilege or protection.--The disclosure of 
        information under paragraph (2) shall not constitute a waiver 
        of any applicable privilege or protection under Federal law, 
        including trade secret protection.

SEC. 1620. LEASING OF OFFICE SPACE.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary shall submit to the Committee on Agriculture and the 
Committee on Appropriations of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry and the Committee on 
Appropriations of the Senate a report that describes--
            (1) the costs and time associated with complying with 
        leasing procedures of the General Services Administration 
        relative to the previous independent leasing procedures of the 
        Department of Agriculture;
            (2) the additional staffing needs associated with complying 
        with those procedures; and
            (3) the value added to the leasing process and the ability 
        of the Department to secure best-value leases by complying with 
        the General Services Administration leasing procedures.

SEC. 1621. GEOGRAPHICALLY DISADVANTAGED FARMERS AND RANCHERS.

    (a) Definitions.--In this section:
            (1) Agricultural commodity.--The term ``agricultural 
        commodity'' has the meaning given the term in section 102 of 
        the Agricultural Trade Act of 1978 (7 U.S.C. 5602).
            (2) Geographically disadvantaged farmer or rancher.--The 
        term ``geographically disadvantaged farmer or rancher'' has the 
        meaning given the term in section 10906(a) of the Farm Security 
        and Rural Investment Act of 2002 (7 U.S.C. 2204 note; Public 
        Law 107-171).
    (b) Authorization.--Subject to the availability of funds under 
subsection (d), the Secretary may provide geographically disadvantaged 
farmers or ranchers direct reimbursement payments for activities 
described in subsection (c).
    (c) Transportation.--
            (1) In general.--Subject to paragraphs (2) and (3), the 
        Secretary may provide direct reimbursement payments to a 
        geographically disadvantaged farmer or rancher to transport an 
        agricultural commodity, or inputs used to produce an 
        agricultural commodity, during a fiscal year.
            (2) Proof of eligibility.--To be eligible to receive 
        assistance under paragraph (1), a geographically disadvantaged 
        farmer or rancher shall demonstrate to the Secretary that 
        transportation of the agricultural commodity or inputs occurred 
        over a distance of more than 30 miles, as determined by the 
        Secretary.
            (3) Amount.--
                    (A) In general.--Subject to paragraph (2), the 
                amount of direct reimbursement payments made to a 
                geographically disadvantaged farmer or rancher under 
                this section for a fiscal year shall equal the product 
                obtained by multiplying--
                            (i) the amount of costs incurred by the 
                        geographically disadvantaged farmer or rancher 
                        for transportation of the agricultural 
                        commodity or inputs during the fiscal year; and
                            (ii)(I) the percentage of the allowance for 
                        that fiscal year under section 5941 of title 5, 
                        United States Code, for Federal employees 
                        stationed in Alaska and Hawaii; or
                            (II) in the case of an insular area (as 
                        defined in section 1404 of the National 
                        Agricultural Research, Extension, and Teaching 
                        Policy Act of 1977 (7 U.S.C. 3103)), a 
                        comparable percentage of the allowance for the 
                        fiscal year, as determined by the Secretary.
                    (B) Limitation.--The total amount of direct 
                reimbursement payments provided by the Secretary under 
                this section shall not exceed $15,000,000 for a fiscal 
                year.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2009 through 2012.

SEC. 1622. IMPLEMENTATION.

    The Secretary shall make available to the Farm Service Agency to 
carry out this title $50,000,000.

SEC. 1623. REPEALS.

    (a) Commission on Application of Payment Limitations.--Section 1605 
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7993) 
is repealed.
    (b) Renewed Availability of Market Loss Assistance and Certain 
Emergency Assistance to Persons That Failed To Receive Assistance Under 
Earlier Authorities.--Section 1617 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8000) is repealed.

                         TITLE II--CONSERVATION

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

SEC. 2001. DEFINITIONS RELATING TO CONSERVATION TITLE OF FOOD SECURITY 
              ACT OF 1985.

    (a) Beginning Farmer or Rancher.--Section 1201(a) of the Food 
Security Act of 1985 (16 U.S.C. 3801(a)) is amended--
            (1) by redesignating paragraphs (2) through (6), (7) 
        through (11), (12), (13) through (15), (16), (17), and (18) as 
        paragraphs (3) through (7), (9) through (13), (15), (20) 
        through (22), (24), (26), and (27), respectively; and
            (2) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Beginning farmer or rancher.--The term `beginning 
        farmer or rancher' has the meaning given the term in section 
        343(a)(8) of the Consolidated Farm and Rural Development Act (7 
        U.S.C. 1991(a)(8)).''.
    (b) Farm.--Section 1201(a) of the Food Security Act of 1985 (16 
U.S.C. 3801(a)) is amended by inserting after paragraph (7), as 
redesignated by subsection (a)(1), the following new paragraph:
            ``(8) Farm.--The term `farm' means a farm that--
                    ``(A) is under the general control of one operator;
                    ``(B) has one or more owners;
                    ``(C) consists of one or more tracts of land, 
                whether or not contiguous;
                    ``(D) is located within a county or region, as 
                determined by the Secretary; and
                    ``(E) may contain lands that are incidental to the 
                production of perennial crops, including conserving 
                uses, forestry, and livestock, as determined by the 
                Secretary.''.
    (c) Indian Tribe.--Section 1201(a) of the Food Security Act of 1985 
(16 U.S.C. 3801(a)) is amended by inserting after paragraph (13), as 
redesignated by subsection (a)(1), the following new paragraph:
            ``(14) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 4(e) of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 
        450b(e)).''.
    (d) Integrated Pest Management; Livestock; Nonindustrial Private 
Forest Land; Person and Legal Entity.--Section 1201(a) of the Food 
Security Act of 1985 (16 U.S.C. 3801(a)) is amended by inserting after 
paragraph (15), as redesignated by subsection (a)(1), the following new 
paragraphs:
            ``(16) Integrated pest management.--The term `integrated 
        pest management' means a sustainable approach to managing pests 
        by combining biological, cultural, physical, and chemical tools 
        in a way that minimizes economic, health, and environmental 
        risks.
            ``(17) Livestock.--The term `livestock' means all animals 
        raised on farms, as determined by the Secretary.
            ``(18) Nonindustrial private forest land.--The term 
        `nonindustrial private forest land' means rural land, as 
        determined by the Secretary, that--
                    ``(A) has existing tree cover or is suitable for 
                growing trees; and
                    ``(B) is owned by any nonindustrial private 
                individual, group, association, corporation, Indian 
                tribe, or other private legal entity that has 
                definitive decisionmaking authority over the land.
            ``(19) Person and legal entity.--For purposes of applying 
        payment limitations under subtitle D, the terms `person' and 
        `legal entity' have the meanings given those terms in section 
        1001(a) of this Act (7 U.S.C. 1308(a)).''.
    (e) Socially Disadvantaged Farmer or Rancher.--Section 1201(a) of 
the Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended by 
inserting after paragraph (22), as redesignated by subsection (a)(1), 
the following new paragraph:
            ``(23) Socially disadvantaged farmer or rancher.--The term 
        `socially disadvantaged farmer or rancher' has the meaning 
        given the term in section 2501(e)(2) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)(2)).''.
    (f) Technical Assistance.--Section 1201(a) of the Food Security Act 
of 1985 (16 U.S.C. 3801(a)) is amended by inserting after paragraph 
(24), as redesignated by subsection (a)(1), the following new 
paragraph:
            ``(25) Technical assistance.--The term `technical 
        assistance' means technical expertise, information, and tools 
        necessary for the conservation of natural resources on land 
        active in agricultural, forestry, or related uses. The term 
        includes the following:
                    ``(A) Technical services provided directly to 
                farmers, ranchers, and other eligible entities, such as 
                conservation planning, technical consultation, and 
                assistance with design and implementation of 
                conservation practices.
                    ``(B) Technical infrastructure, including 
                activities, processes, tools, and agency functions 
                needed to support delivery of technical services, such 
                as technical standards, resource inventories, training, 
                data, technology, monitoring, and effects analyses.''.

SEC. 2002. REVIEW OF GOOD FAITH DETERMINATIONS RELATED TO HIGHLY 
              ERODIBLE LAND CONSERVATION.

    Section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812) is 
amended by striking subsection (f) and inserting the following new 
subsection:
    ``(f) Graduated Penalties.--
            ``(1) Ineligibility.--No person shall become ineligible 
        under section 1211 for program loans, payments, and benefits as 
        a result of the failure of the person to actively apply a 
        conservation plan, if the Secretary determines that the person 
        has acted in good faith and without an intent to violate this 
        subtitle.
            ``(2) Eligible reviewers.--A determination of the 
        Secretary, or a designee of the Secretary, under paragraph (1) 
        shall be reviewed by the applicable--
                    ``(A) State Executive Director, with the technical 
                concurrence of the State Conservationist; or
                    ``(B) district director, with the technical 
                concurrence of the area conservationist.
            ``(3) Period for implementation.--A person who meets the 
        requirements of paragraph (1) shall be allowed a reasonable 
        period of time, as determined by the Secretary, but not to 
        exceed 1 year, during which to implement the measures and 
        practices necessary to be considered to be actively applying 
        the conservation plan of the person.
            ``(4) Penalties.--
                    ``(A) Application.--This paragraph applies if the 
                Secretary determines that--
                            ``(i) a person has failed to comply with 
                        section 1211 with respect to highly erodible 
                        cropland, and has acted in good faith and 
                        without an intent to violate section 1211; or
                            ``(ii) the violation--
                                    ``(I) is technical and minor in 
                                nature; and
                                    ``(II) has a minimal effect on the 
                                erosion control purposes of the 
                                conservation plan applicable to the 
                                land on which the violation has 
                                occurred.
                    ``(B) Reduction.--If this paragraph applies under 
                subparagraph (A), the Secretary shall, in lieu of 
                applying the ineligibility provisions of section 1211, 
                reduce program benefits described in section 1211 that 
                the producer would otherwise be eligible to receive in 
                a crop year by an amount commensurate with the 
                seriousness of the violation, as determined by the 
                Secretary.
            ``(5) Subsequent crop years.--Any person whose benefits are 
        reduced for any crop year under this subsection shall continue 
        to be eligible for all of the benefits described in section 
        1211 for any subsequent crop year if, prior to the beginning of 
        the subsequent crop year, the Secretary determines that the 
        person is actively applying a conservation plan according to 
        the schedule specified in the plan.''.

SEC. 2003. REVIEW OF GOOD FAITH DETERMINATIONS RELATED TO WETLAND 
              CONSERVATION.

    Section 1222(h) of the Food Security Act of 1985 (16 U.S.C. 
3822(h)) is amended--
            (1) by redesignating paragraph (2) as paragraph (3);
            (2) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Eligible reviewers.--A determination of the 
        Secretary, or a designee of the Secretary, under paragraph (1) 
        shall be reviewed by the applicable--
                    ``(A) State Executive Director, with the technical 
                concurrence of the State Conservationist; or
                    ``(B) district director, with the technical 
                concurrence of the area conservationist.''; and
            (3) in paragraph (3) (as redesignated by paragraph (1)), by 
        inserting ``be'' before ``actively''.

                Subtitle B--Conservation Reserve Program

SEC. 2101. EXTENSION OF CONSERVATION RESERVE PROGRAM.

    Section 1231(a) of the Food Security Act of 1985 (16 U.S.C. 
3831(a)) is amended--
            (1) by striking ``2007 calendar year'' and inserting ``2012 
        fiscal year''; and
            (2) by inserting before the period the following: ``and to 
        address issues raised by State, regional, and national 
        conservation initiatives''; and

SEC. 2102. LAND ELIGIBLE FOR ENROLLMENT IN CONSERVATION RESERVE.

    Section 1231(b) of the Food Security Act of 1985 (16 U.S.C. 
3831(b)) is amended--
            (1) in paragraph (1)(B)--
                    (A) by striking ``Farm Security and Rural 
                Investment Act of 2002'' and inserting ``Food, 
                Conservation, and Energy Act of 2008''; and
                    (B) by striking the period at the end and inserting 
                a semicolon; and
            (2) in paragraph (4)--
                    (A) in subparagraph (C), by striking ``; or'' and 
                inserting a semicolon;
                    (B) in subparagraph (D), by striking ``and'' at the 
                end and inserting ``or''; and
                    (C) in subparagraph (E), by inserting ``or'' after 
                the semicolon at the end.

SEC. 2103. MAXIMUM ENROLLMENT OF ACREAGE IN CONSERVATION RESERVE.

    Section 1231(d) of the Food Security Act of 1985 (16 U.S.C. 
3831(d)) is amended--
            (1) by striking ``2007 calendar years'' and inserting 
        ``2009 fiscal years'';
            (2) by striking ``( 16 U.S.C.'' and inserting ``(16 
        U.S.C.''; and
            (3) by adding at the end the following new sentence: 
        ``During fiscal years 2010, 2011, and 2012, the Secretary may 
        maintain up to 32,000,000 acres in the conservation reserve at 
        any 1 time.''.

SEC. 2104. DESIGNATION OF CONSERVATION PRIORITY AREAS.

    Section 1231(f) of the Food Security Act of 1985 (16 U.S.C. 
3831(f)) is amended by striking ``the Chesapeake Bay Region 
(Pennsylvania, Maryland, and Virginia)'' and inserting ``the Chesapeake 
Bay Region''.

SEC. 2105. TREATMENT OF MULTI-YEAR GRASSES AND LEGUMES.

    Subsection (g) of section 1231 of the Food Security Act of 1985 (16 
U.S.C. 3831) is amended to read as follows:
    ``(g) Multi-Year Grasses and Legumes.--
            ``(1) In general.--For purposes of this subchapter, alfalfa 
        and other multi-year grasses and legumes in a rotation 
        practice, approved by the Secretary, shall be considered 
        agricultural commodities.
            ``(2) Cropping history.--Alfalfa, when grown as part of a 
        rotation practice, as determined by the Secretary, is an 
        agricultural commodity subject to the cropping history criteria 
        under subsection (b)(1)(B) for the purpose of determining 
        whether highly erodible cropland has been planted or considered 
        planted for 4 of the 6 years referred to in such subsection.''.

SEC. 2106. REVISED PILOT PROGRAM FOR ENROLLMENT OF WETLAND AND BUFFER 
              ACREAGE IN CONSERVATION RESERVE.

    (a) Revised Program.--
            (1) In general.--Title XII of the Food Security Act of 1985 
        is amended by inserting after section 1231 (16 U.S.C. 3831) the 
        following new section:

``SEC. 1231B. PILOT PROGRAM FOR ENROLLMENT OF WETLAND AND BUFFER 
              ACREAGE IN CONSERVATION RESERVE.

    ``(a) Program Required.--
            ``(1) In general.--During the 2008 through 2012 fiscal 
        years, the Secretary shall carry out a program in each State 
        under which the Secretary shall enroll eligible acreage 
        described in subsection (b).
            ``(2) Participation among states.--The Secretary shall 
        ensure, to the maximum extent practicable, that owners and 
        operators in each State have an equitable opportunity to 
        participate in the program established under this section.
    ``(b) Eligible Acreage.--
            ``(1) Wetland and related land.--Subject to subsections (c) 
        and (d), an owner or operator may enroll in the conservation 
        reserve, pursuant to the program established under this 
        section, land--
                    ``(A) that is wetland (including a converted 
                wetland described in section 1222(b)(1)(A)) that had a 
                cropping history during at least 3 of the immediately 
                preceding 10 crop years;
                    ``(B) on which a constructed wetland is to be 
                developed that will receive flow from a row crop 
                agriculture drainage system and is designed to provide 
                nitrogen removal in addition to other wetland 
                functions;
                    ``(C) that was devoted to commercial pond-raised 
                aquaculture in any year during the period of calendar 
                years 2002 through 2007; or
                    ``(D) that, after January 1, 1990, and before 
                December 31, 2002, was--
                            ``(i) cropped during at least 3 of 10 crop 
                        years; and
                            ``(ii) subject to the natural overflow of a 
                        prairie wetland.
            ``(2) Buffer acreage.--Subject to subsections (c) and (d), 
        an owner or operator may enroll in the conservation reserve, 
        pursuant to the program established under this section, buffer 
        acreage that--
                    ``(A) with respect to land described in 
                subparagraph (A), (B), or (C) of paragraph (1)--
                            ``(i) is contiguous to such land
                            ``(ii) is used to protect such land; and
                            ``(iii) is of such width as the Secretary 
                        determines is necessary to protect such land, 
                        taking into consideration and accommodating the 
                        farming practices (including the straightening 
                        of boundaries to accommodate machinery) used 
                        with respect to the cropland that surrounds 
                        such land; and
                    ``(B) with respect to land described in 
                subparagraph (D) of paragraph (1), enhances a wildlife 
                benefit to the extent practicable in terms of upland to 
                wetland ratios, as determined by the Secretary.
    ``(c) Program Limitations.--
            ``(1) Acreage limitation.--The Secretary may enroll in the 
        conservation reserve, pursuant to the program established under 
        this section, not more than--
                    ``(A) 100,000 acres in any State; and
                    ``(B) a total of 1,000,000 acres.
            ``(2) Relationship to maximum enrollment.--Subject to 
        paragraph (3), any acreage enrolled in the conservation reserve 
        under this section shall be considered acres maintained in the 
        conservation reserve.
            ``(3) Relationship to other enrolled acreage.--Acreage 
        enrolled in the conservation reserve under this section shall 
        not affect for any fiscal year the quantity of--
                    ``(A) acreage enrolled to establish conservation 
                buffers as part of the program announced on March 24, 
                1998 (63 Fed. Reg. 14109); or
                    ``(B) acreage enrolled into the conservation 
                reserve enhancement program announced on May 27, 1998 
                (63 Fed. Reg. 28965).
            ``(4) Review; potential increase in enrollment acreage.--
        The Secretary shall conduct a review of the program established 
        under this section with respect to each State that has enrolled 
        land in the conservation reserve pursuant to the program. As a 
        result of the review, the Secretary may increase the number of 
        acres that may be enrolled in a State under the program to not 
        more than 200,000 acres, notwithstanding paragraph (1)(A).
    ``(d) Owner or Operator Enrollment Limitations.--
            ``(1) Wetland and related land.--
                    ``(A) Wetlands and constructed wetlands.--The 
                maximum size of any land described in subparagraph (A) 
                or (B) of subsection (b)(1) that an owner or operator 
                may enroll in the conservation reserve, pursuant to the 
                program established under this section, shall be 40 
                contiguous acres.
                    ``(B) Flooded farmland.--The maximum size of any 
                land described in subparagraph (D) of subsection (b)(1) 
                that an owner or operator may enroll in the 
                conservation reserve, pursuant to the program 
                established under this section, shall be 20 contiguous 
                acres.
                    ``(C) Coverage.--All acres described in 
                subparagraph (A) or (B), including acres that are 
                ineligible for payment, shall be covered by the 
                conservation contract.
            ``(2) Buffer acreage.--The maximum size of any buffer 
        acreage described in subsection (b)(2) that an owner or 
        operator may enroll in the conservation reserve under this 
        section shall be determined by the Secretary in consultation 
        with the State Technical Committee.
            ``(3) Tracts.--Except for land described in subsection 
        (b)(1)(C) and buffer acreage related to such land, the maximum 
        size of any eligible acreage described in subsection (b)(1) in 
        a tract of an owner or operator enrolled in the conservation 
        reserve under this section shall be 40 acres.
    ``(e) Duties of Owners and Operators.--During the term of a 
contract entered into under the program established under this section, 
an owner or operator shall agree--
            ``(1) to restore the hydrology of the wetland within the 
        eligible acreage to the maximum extent practicable, as 
        determined by the Secretary;
            ``(2) to establish vegetative cover (which may include 
        emerging vegetation in water and bottomland hardwoods, cypress, 
        and other appropriate tree species) on the eligible acreage, as 
        determined by the Secretary;
            ``(3) to a general prohibition of commercial use of the 
        enrolled land; and
            ``(4) to carry out other duties described in section 1232.
    ``(f) Duties of the Secretary.--
            ``(1) In general.--Except as provided in paragraphs (2) and 
        (3), in return for a contract entered into under this section, 
        the Secretary shall--
                    ``(A) make payments to the owner or operator based 
                on rental rates for cropland; and
                    ``(B) provide assistance to the owner or operator 
                in accordance with sections 1233 and 1234.
            ``(2) Contract offers and payments.--The Secretary shall 
        use the method of determination described in section 
        1234(c)(2)(B) to determine the acceptability of contract offers 
        and the amount of rental payments under this section.
            ``(3) Incentives.--The amounts payable to owners and 
        operators in the form of rental payments under contracts 
        entered into under this section shall reflect incentives that 
        are provided to owners and operators to enroll filterstrips in 
        the conservation reserve under section 1234.''.
            (2) Repeal of superceded program.--Section 1231 of the Food 
        Security Act of 1985 (16 U.S.C. 3831) is amended--
                    (A) by striking subsection (h); and
                    (B) by redesignating subsections (i) and (j) as 
                subsections (h) and (i), respectively.
    (b) Conforming Changes to Emergency Forestry Conservation Reserve 
Program.--Subsection (k) of section 1231 of the Food Security Act of 
1985 (16 U.S.C. 3831) is amended--
            (1) by striking ``(k) Emergency Forestry Conservation 
        Reserve Program.--'' and inserting the following:

``SEC. 1231A. EMERGENCY FORESTRY CONSERVATION RESERVE PROGRAM.'';

            (2) by striking ``subsection'' each place it appears (other 
        than paragraph (3)(C)(ii)) and inserting ``section'';
            (3) by redesignating paragraphs (1), (2), and (3) as 
        subsections (a), (b), and (c), respectively;
            (4) in subsection (a), as so redesignated, by redesignating 
        subparagraphs (A) and (B) as paragraphs (1) and (2), 
        respectively; and
            (5) in subsection (c), as so redesignated--
                    (A) by redesignating subparagraphs (A) through (I) 
                as paragraphs (1) through (9), respectively;
                    (B) in paragraph (1), as so redesignated, by 
                striking ``subparagraph (B)'' and ``subparagraph (G)'' 
                and inserting ``paragraph (2)'' and ``paragraph (7)'', 
                respectively;
                    (C) in paragraph (3), as so redesignated--
                            (i) by redesignating clauses (i) and (ii) 
                        as subparagraphs (A) and (B), respectively; and
                            (ii) by striking ``subsection (d)'' and 
                        inserting ``section 1231(d)'';
                    (D) in paragraph (4), as so redesignated, by 
                redesignating clauses (i) and (ii) as subparagraphs (A) 
                and (B), respectively;
                    (E) in paragraph (5), as so redesignated--
                            (i) by redesignating clauses (i) through 
                        (v) as subparagraphs (A) through (E), 
                        respectively, and subclauses (I) and (II) as 
                        clauses (i) and (ii), respectively;
                            (ii) in subparagraph (B), as so 
                        redesignated, by striking ``clause (i)(I)'' and 
                        inserting ``subparagraph (A)(i)''; and
                            (iii) in subparagraph (C), as so 
                        redesignated, by striking ``clause (i)(II)'' 
                        and inserting ``subparagraph (A)(ii)''; and
                    (F) in paragraph (9), as so redesignated, by 
                redesignating clauses (i) through (iii) as 
                subparagraphs (A) through (C), respectively, and 
                subclauses (I) through (III) as clauses (i) through 
                (iii), respectively.

SEC. 2107. ADDITIONAL DUTY OF PARTICIPANTS UNDER CONSERVATION RESERVE 
              CONTRACTS.

    Section 1232(a) of the Food Security Act of 1985 (16 U.S.C. 
3832(a)) is amended--
            (1) by redesignating paragraphs (5) through (10) as 
        paragraphs (6) through (11), respectively; and
            (2) by inserting after paragraph (4) the following new 
        paragraph:
            ``(5) to undertake management on the land as needed 
        throughout the term of the contract to implement the 
        conservation plan;''.

SEC. 2108. MANAGED HAYING, GRAZING, OR OTHER COMMERCIAL USE OF FORAGE 
              ON ENROLLED LAND AND INSTALLATION OF WIND TURBINES.

    (a) General Prohibition; Exceptions.--Section 1232(a) of the Food 
Security Act of 1985 (16 U.S.C. 3832(a)) is amended by striking 
paragraph (8), as redesignated by section 2107, and inserting the 
following new paragraph:
            ``(8) not to conduct any harvesting or grazing, nor 
        otherwise make commercial use of the forage, on land that is 
        subject to the contract, nor adopt any similar practice 
        specified in the contract by the Secretary as a practice that 
        would tend to defeat the purposes of the contract, except that 
        the Secretary may permit, consistent with the conservation of 
        soil, water quality, and wildlife habitat (including habitat 
        during nesting seasons for birds in the area)--
                    ``(A) managed harvesting (including the managed 
                harvesting of biomass), except that in permitting 
                managed harvesting, the Secretary, in coordination with 
                the State technical committee--
                            ``(i) shall develop appropriate vegetation 
                        management requirements; and
                            ``(ii) shall identify periods during which 
                        managed harvesting may be conducted;
                    ``(B) harvesting and grazing or other commercial 
                use of the forage on the land that is subject to the 
                contract in response to a drought or other emergency;
                    ``(C) routine grazing or prescribed grazing for the 
                control of invasive species, except that in permitting 
                such routine grazing or prescribed grazing, the 
                Secretary, in coordination with the State technical 
                committee--
                            ``(i) shall develop appropriate vegetation 
                        management requirements and stocking rates for 
                        the land that are suitable for continued 
                        routine grazing; and
                            ``(ii) shall establish the frequency during 
                        which routine grazing may be conducted, taking 
                        into consideration regional differences such 
                        as--
                                    ``(I) climate, soil type, and 
                                natural resources;
                                    ``(II) the number of years that 
                                should be required between routine 
                                grazing activities; and
                                    ``(III) how often during a year in 
                                which routine grazing is permitted that 
                                routine grazing should be allowed to 
                                occur; and
                    ``(D) the installation of wind turbines, except 
                that in permitting the installation of wind turbines, 
                the Secretary shall determine the number and location 
                of wind turbines that may be installed, taking into 
                account--
                            ``(i) the location, size, and other 
                        physical characteristics of the land;
                            ``(ii) the extent to which the land 
                        contains wildlife and wildlife habitat; and
                            ``(iii) the purposes of the conservation 
                        reserve program under this subchapter;''.
    (b) Rental Payment Reduction.--Section 1232 of the Food Security 
Act of 1985 (16 U.S.C. 3832) is amended by adding at the end the 
following new subsection:
    ``(d) Rental Payment Reduction for Certain Authorized Uses of 
Enrolled Land.--In the case of an authorized activity under subsection 
(a)(8) on land that is subject to a contract under this subchapter, the 
Secretary shall reduce the rental payment otherwise payable under the 
contract by an amount commensurate with the economic value of the 
authorized activity.''.

SEC. 2109. COST SHARING PAYMENTS RELATING TO TREES, WINDBREAKS, 
              SHELTERBELTS, AND WILDLIFE CORRIDORS.

    Section 1234(b) of the Food Security Act of 1985 (16 U.S.C. 
3834(b)) is amended by striking paragraph (3) and inserting the 
following new paragraph:
            ``(3) Trees, windbreaks, shelterbelts, and wildlife 
        corridors.--
                    ``(A) Applicability.--This paragraph applies to--
                            ``(i) land devoted to the production of 
                        hardwood trees, windbreaks, shelterbelts, or 
                        wildlife corridors under a contract entered 
                        into under this subchapter after November 28, 
                        1990;
                            ``(ii) land converted to such production 
                        under section 1235A; and
                            ``(iii) land on which an owner or operator 
                        agrees to conduct thinning authorized by 
                        section 1232(a)(9), if the thinning is 
                        necessary to improve the condition of resources 
                        on the land.
                    ``(B) Payments.--
                            ``(i) Percentage.--In making cost share 
                        payments to an owner or operator of land 
                        described in subparagraph (A), the Secretary 
                        shall pay 50 percent of the reasonable and 
                        necessary costs incurred by the owner or 
                        operator for maintaining trees or shrubs, 
                        including the cost of replanting (if the trees 
                        or shrubs were lost due to conditions beyond 
                        the control of the owner or operator) or 
                        thinning.
                            ``(ii) Duration.--The Secretary shall make 
                        payments as described in clause (i) for a 
                        period of not less than 2 years, but not more 
                        than 4 years, beginning on the date of--
                                    ``(I) the planting of the trees or 
                                shrubs; or
                                    ``(II) the thinning of existing 
                                stands to improve the condition of 
                                resources on the land.''.

SEC. 2110. EVALUATION AND ACCEPTANCE OF CONTRACT OFFERS, ANNUAL RENTAL 
              PAYMENTS, AND PAYMENT LIMITATIONS.

    (a) Evaluation and Acceptance of Contract Offers.--Section 1234(c) 
of the Food Security Act of 1985 (16 U.S.C. 3834(c)) is amended by 
striking paragraph (3) and inserting the following new paragraph:
            ``(3) Acceptance of contract offers.--
                    ``(A) Evaluation of offers.--In determining the 
                acceptability of contract offers, the Secretary may 
                take into consideration the extent to which enrollment 
                of the land that is the subject of the contract offer 
                would improve soil resources, water quality, or 
                wildlife habitat or provide other environmental 
                benefits.
                    ``(B) Establishment of different criteria in 
                various states and regions.--The Secretary may 
                establish different criteria for determining the 
                acceptability of contract offers in various States and 
                regions of the United States based on the extent to 
                which water quality or wildlife habitat may be improved 
                or erosion may be abated.
                    ``(C) Local preference.--In determining the 
                acceptability of contract offers for new enrollments, 
                the Secretary shall accept, to the maximum extent 
                practicable, an offer from an owner or operator that is 
                a resident of the county in which the land is located 
                or of a contiguous county if, as determined by the 
                Secretary, the land would provide at least equivalent 
                conservation benefits to land under competing 
                offers.''.
    (b) Annual Survey of Dryland and Irrigated Cash Rental Rates.--
            (1) Annual estimates required.--Section 1234(c) of the Food 
        Security Act of 1985 (16 U.S.C. 3834(c)) is amended by adding 
        at the end the following new paragraph:
            ``(5) Rental rates.--
                    ``(A) Annual estimates.--The Secretary (acting 
                through the National Agricultural Statistics Service) 
                shall conduct an annual survey of per acre estimates of 
                county average market dryland and irrigated cash rental 
                rates for cropland and pastureland in all counties or 
                equivalent subdivisions within each State that have 
                20,000 acres or more of cropland and pastureland.
                    ``(B) Public availability of estimates.--The 
                estimates derived from the annual survey conducted 
                under subparagraph (A) shall be maintained on a website 
                of the Department of Agriculture for use by the general 
                public.''.
            (2) First survey.--The first survey required by paragraph 
        (5) of section 1234(c) of the Food Security Act of 1985 (16 
        U.S.C. 3834(c)), as added by subsection (a), shall be conducted 
        not later than 1 year after the date of enactment of this Act.
    (c) Payment Limitations.--Section 1234(f) of the Food Security Act 
of 1985 (16 U.S.C. 3834(f)) is amended--
            (1) in paragraph (1), by striking ``made to a person'' and 
        inserting ``received by a person or legal entity, directly or 
        indirectly,'';
            (2) by striking paragraph (2); and
            (3) in paragraph (4), by striking ``any person'' and 
        inserting ``any person or legal entity''.

SEC. 2111. CONSERVATION RESERVE PROGRAM TRANSITION INCENTIVES FOR 
              BEGINNING FARMERS OR RANCHERS AND SOCIALLY DISADVANTAGED 
              FARMERS OR RANCHERS.

    (a) Contract Modification Authority.--Section 1235(c)(1)(B) of the 
Food Security Act of 1985 (16 U.S.C. 3835(c)(1)(B)) is amended--
            (1) in clause (ii), by striking ``or'' at the end;
            (2) by redesignating clause (iii) as clause (iv); and
            (3) by inserting after clause (ii) the following new 
        clause:
                            ``(iii) to facilitate a transition of land 
                        subject to the contract from a retired or 
                        retiring owner or operator to a beginning 
                        farmer or rancher or socially disadvantaged 
                        farmer or rancher for the purpose of returning 
                        some or all of the land into production using 
                        sustainable grazing or crop production methods; 
                        or''.
    (b) Transition Option.--Section 1235 of the Food Security Act of 
1985 (16 U.S.C. 3835) is amended by adding at the end the following new 
subsection:
    ``(f) Transition Option for Certain Farmers or Ranchers.--
            ``(1) Duties of the secretary.--In the case of a contract 
        modification approved in order to facilitate the transfer, as 
        described in subsection (c)(1)(B)(iii), of land to a beginning 
        farmer or rancher or socially disadvantaged farmer or rancher 
        (in this subsection referred to as a `covered farmer or 
        rancher'), the Secretary shall--
                    ``(A) beginning on the date that is 1 year before 
                the date of termination of the contract--
                            ``(i) allow the covered farmer or rancher, 
                        in conjunction with the retired or retiring 
                        owner or operator, to make conservation and 
                        land improvements; and
                            ``(ii) allow the covered farmer or rancher 
                        to begin the certification process under the 
                        Organic Foods Production Act of 1990 (7 U.S.C. 
                        6501 et seq.);
                    ``(B) beginning on the date of termination of the 
                contract, require the retired or retiring owner or 
                operator to sell or lease (under a long-term lease or a 
                lease with an option to purchase) to the covered farmer 
                or rancher the land subject to the contract for 
                production purposes;
                    ``(C) require the covered farmer or rancher to 
                develop and implement a conservation plan;
                    ``(D) provide to the covered farmer or rancher an 
                opportunity to enroll in the conservation stewardship 
                program or the environmental quality incentives program 
                by not later than the date on which the farmer or 
                rancher takes possession of the land through ownership 
                or lease; and
                    ``(E) continue to make annual payments to the 
                retired or retiring owner or operator for not more than 
                an additional 2 years after the date of termination of 
                the contract, if the retired or retiring owner or 
                operator is not a family member (as defined in section 
                1001A(b)(3)(B) of this Act) of the covered farmer or 
                rancher.
            ``(2) Reenrollment.--The Secretary shall provide a covered 
        farmer or rancher with the option to reenroll any applicable 
        partial field conservation practice that--
                    ``(A) is eligible for enrollment under the 
                continuous signup requirement of section 1231(h)(4)(B); 
                and
                    ``(B) is part of an approved conservation plan.''.

                  Subtitle C--Wetlands Reserve Program

SEC. 2201. ESTABLISHMENT AND PURPOSE OF WETLANDS RESERVE PROGRAM.

    Subsection (a) of section 1237 of the Food Security Act of 1985 (16 
U.S.C. 3837) is amended to read as follows:
    ``(a) Establishment and Purposes.--
            ``(1) Establishment.--The Secretary shall establish a 
        wetlands reserve program to assist owners of eligible lands in 
        restoring and protecting wetlands.
            ``(2) Purposes.--The purposes of the wetlands reserve 
        program are to restore, protect, or enhance wetlands on private 
        or tribal lands that are eligible under subsections (c) and 
        (d).''.

SEC. 2202. MAXIMUM ENROLLMENT AND ENROLLMENT METHODS.

    Section 1237(b) of the Food Security Act of 1985 (16 U.S.C. 
3837(b)) is amended--
            (1) by striking paragraph (1) and inserting the following 
        new paragraph:
            ``(1) Maximum enrollment.--The total number of acres 
        enrolled in the wetlands reserve program shall not exceed 
        3,041,200 acres.'';
            (2) in paragraph (2), by striking ``The Secretary'' and 
        inserting ``Subject to paragraph (3), the Secretary''; and
            (3) by adding at the end the following new paragraph:
            ``(3) Acreage owned by indian tribes.--In the case of 
        acreage owned by an Indian tribe, the Secretary shall enroll 
        acreage into the wetlands reserve program through the use of--
                    ``(A) a 30-year contract (the value of which shall 
                be equivalent to the value of a 30-year easement);
                    ``(B) restoration cost-share agreements; or
                    ``(C) any combination of the options described in 
                subparagraphs (A) and (B).''.

SEC. 2203. DURATION OF WETLANDS RESERVE PROGRAM AND LANDS ELIGIBLE FOR 
              ENROLLMENT.

    (a) In General.--Section 1237(c) of the Food Security Act of 1985 
(16 U.S.C. 3837(c)) is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking ``2007 calendar'' and inserting 
                ``2012 fiscal''; and
                    (B) by inserting ``private or tribal'' before 
                ``land'' the second place it appears;
            (2) by striking paragraph (2) and inserting the following 
        new paragraph:
            ``(2) such land is--
                    ``(A) farmed wetland or converted wetland, together 
                with the adjacent land that is functionally dependent 
                on the wetlands, except that converted wetland with 
                respect to which the conversion was not commenced prior 
                to December 23, 1985, shall not be eligible to be 
                enrolled in the program under this section; or
                    ``(B) cropland or grassland that was used for 
                agricultural production prior to flooding from the 
                natural overflow of a closed basin lake or pothole, as 
                determined by the Secretary, together (where 
                practicable) with the adjacent land that is 
                functionally dependent on the cropland or grassland; 
                and''.
    (b) Change of Ownership.--Section 1237E(a) of the Food Security Act 
of 1985 (16 U.S.C. 3837e(a)) is amended by striking ``in the preceding 
12 months'' and inserting ``during the preceding 7-year period''.
    (c) Annual Survey and Reallocation.--Section 1237F of the Food 
Security Act of 1985 (16 U.S.C. 3837f) is amended by adding at the end 
the following new subsection:
    ``(c) Prairie Pothole Region Survey and Reallocation.--
            ``(1) Survey.--The Secretary shall conduct a survey during 
        fiscal year 2008 and each subsequent fiscal year for the 
        purpose of determining interest and allocations for the Prairie 
        Pothole Region to enroll eligible land described in section 
        1237(c)(2)(B).
            ``(2) Annual adjustment.--The Secretary shall make an 
        adjustment to the allocation for an interested State for a 
        fiscal year, based on the results of the survey conducted under 
        paragraph (1) for the State during the previous fiscal year.''.

SEC. 2204. TERMS OF WETLANDS RESERVE PROGRAM EASEMENTS.

    Section 1237A(b)(2)(B) of the Food Security Act of 1985 (16 U.S.C. 
3837a(b)(2)(B)) is amended--
            (1) in clause (i), by striking ``or'' at the end;
            (2) in clause (ii), by striking ``; and'' and inserting ``; 
        or''; and
            (3) by adding at the end the following new clause:
                            ``(iii) to meet habitat needs of specific 
                        wildlife species; and''.

SEC. 2205. COMPENSATION FOR EASEMENTS UNDER WETLANDS RESERVE PROGRAM.

    Subsection (f) of section 1237A of the Food Security Act of 1985 
(16 U.S.C. 3837a) is amended to read as follows:
    ``(f) Compensation.--
            ``(1) Determination.--Effective on the date of the 
        enactment of the Food, Conservation, and Energy Act of 2008, 
        the Secretary shall pay as compensation for a conservation 
        easement acquired under this subchapter the lowest of--
                    ``(A) the fair market value of the land, as 
                determined by the Secretary, using the Uniform 
                Standards of Professional Appraisal Practices or an 
                area-wide market analysis or survey;
                    ``(B) the amount corresponding to a geographical 
                cap, as determined by the Secretary in regulations; or
                    ``(C) the offer made by the landowner.
            ``(2) Form of payment.--Compensation for an easement shall 
        be provided by the Secretary in the form of a cash payment, in 
        an amount determined under paragraph (1) and specified in the 
        easement agreement.
            ``(3) Payment schedule for easements.--
                    ``(A) Easements valued at $500,000 or less.--For 
                easements valued at $500,000 or less, the Secretary may 
                provide easement payments in not more than 30 annual 
                payments.
                    ``(B) Easements in excess of $500,000.--For 
                easements valued at more than $500,000, the Secretary 
                may provide easement payments in at least 5, but not 
                more than 30 annual payments, except that, if the 
                Secretary determines it would further the purposes of 
                the program, the Secretary may make a lump sum payment 
                for such an easement.
            ``(4) Restoration agreement payment limitation.--Payments 
        made to a person or legal entity, directly or indirectly, 
        pursuant to a restoration cost-share agreement under this 
        subchapter may not exceed, in the aggregate, $50,000 per year.
            ``(5) Enrollment procedure.--Lands may be enrolled under 
        this subchapter through the submission of bids under a 
        procedure established by the Secretary.''.

SEC. 2206. WETLANDS RESERVE ENHANCEMENT PROGRAM AND RESERVED RIGHTS 
              PILOT PROGRAM.

    Section 1237A of the Food Security Act of 1985 (16 U.S.C. 3837a) is 
amended by adding at the end the following new subsection:
    ``(h) Wetlands Reserve Enhancement Program.--
            ``(1) Program authorized.--The Secretary may enter into 1 
        or more agreements with a State (including a political 
        subdivision or agency of a State), nongovernmental 
        organization, or Indian tribe to carry out a special wetlands 
        reserve enhancement program that the Secretary determines would 
        advance the purposes of this subchapter.
            ``(2) Reserved rights pilot program.--
                    ``(A) Reservation of grazing rights.--As part of 
                the wetlands reserve enhancement program, the Secretary 
                shall carry out a pilot program for land in which a 
                landowner may reserve grazing rights in the warranty 
                easement deed restriction if the Secretary determines 
                that the reservation and use of the grazing rights--
                            ``(i) is compatible with the land subject 
                        to the easement;
                            ``(ii) is consistent with the long-term 
                        wetland protection and enhancement goals for 
                        which the easement was established; and
                            ``(iii) complies with a conservation plan.
                    ``(B) Duration.--The pilot program established 
                under this paragraph shall terminate on September 30, 
                2012.''.

SEC. 2207. DUTIES OF SECRETARY OF AGRICULTURE UNDER WETLANDS RESERVE 
              PROGRAM.

    Section 1237C of the Food Security Act of 1985 (16 U.S.C. 3837c) is 
amended--
            (1) in subsection (a)(1), by inserting ``including 
        necessary maintenance activities,'' after ``values,''; and
            (2) by striking subsection (c) and inserting the following 
        new subsection:
    ``(c) Ranking of Offers.--
            ``(1) Conservation benefits and funding considerations.--
        When evaluating offers from landowners, the Secretary may 
        consider--
                    ``(A) the conservation benefits of obtaining an 
                easement or other interest in the land;
                    ``(B) the cost-effectiveness of each easement or 
                other interest in eligible land, so as to maximize the 
                environmental benefits per dollar expended; and
                    ``(C) whether the landowner or another person is 
                offering to contribute financially to the cost of the 
                easement or other interest in the land to leverage 
                Federal funds.
            ``(2) Additional considerations.--In determining the 
        acceptability of easement offers, the Secretary may take into 
        consideration--
                    ``(A) the extent to which the purposes of the 
                easement program would be achieved on the land;
                    ``(B) the productivity of the land; and
                    ``(C) the on-farm and off-farm environmental 
                threats if the land is used for the production of 
                agricultural commodities.''.

SEC. 2208. PAYMENT LIMITATIONS UNDER WETLANDS RESERVE CONTRACTS AND 
              AGREEMENTS.

    Section 1237D(c)(1) of the Food Security Act of 1985 (16 U.S.C. 
3837d(c)(1)) is amended--
            (1) by striking ``The total amount of easement payments 
        made to a person'' and inserting ``The total amount of payments 
        that a person or legal entity may receive, directly or 
        indirectly,''; and
            (2) by inserting ``or under 30-year contracts'' before the 
        period at the end.

SEC. 2209. REPEAL OF PAYMENT LIMITATIONS EXCEPTION FOR STATE AGREEMENTS 
              FOR WETLANDS RESERVE ENHANCEMENT.

    Section 1237D(c) of the Food Security Act of 1985 (16 U.S.C. 
3837d(c)) is amended by striking paragraph (4).

SEC. 2210. REPORT ON IMPLICATIONS OF LONG-TERM NATURE OF CONSERVATION 
              EASEMENTS.

    (a) Report Required.--Not later than January 1, 2010, the Secretary 
of Agriculture shall submit to the Committee on Agriculture of the 
House of Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a report that evaluates the implications of 
the long-term nature of conservation easements granted under section 
1237A of the Food Security Act of 1985 (16 U.S.C. 3837a) on resources 
of the Department of Agriculture.
    (b) Inclusions.--The report required by subsection (a) shall 
include the following:
            (1) Data relating to the number and location of 
        conservation easements granted under that section that the 
        Secretary holds or has a significant role in monitoring or 
        managing.
            (2) An assessment of the extent to which the oversight of 
        the conservation easement agreements impacts the availability 
        of resources, including technical assistance.
            (3) An assessment of the uses and value of agreements with 
        partner organizations.
            (4) Any other relevant information relating to costs or 
        other effects that would be helpful to the Committees referred 
        to in subsection (a).

              Subtitle D--Conservation Stewardship Program

SEC. 2301. CONSERVATION STEWARDSHIP PROGRAM.

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

            ``Subchapter B--Conservation Stewardship Program

``SEC. 1238D. DEFINITIONS.

    ``In this subchapter:
            ``(1) Conservation activities.--
                    ``(A) In general.--The term `conservation 
                activities' means conservation systems, practices, or 
                management measures that are designed to address a 
                resource concern.
                    ``(B) Inclusions.--The term `conservation 
                activities' includes--
                            ``(i) structural measures, vegetative 
                        measures, and land management measures, 
                        including agriculture drainage management 
                        systems, as determined by the Secretary; and
                            ``(ii) planning needed to address a 
                        resource concern.
            ``(2) Conservation measurement tools.--The term 
        `conservation measurement tools' means procedures to estimate 
        the level of environmental benefit to be achieved by a producer 
        in implementing conservation activities, including indices or 
        other measures developed by the Secretary.
            ``(3) Conservation stewardship plan.--The term 
        `conservation stewardship plan' means a plan that--
                    ``(A) identifies and inventories resource concerns;
                    ``(B) establishes benchmark data and conservation 
                objectives;
                    ``(C) describes conservation activities to be 
                implemented, managed, or improved; and
                    ``(D) includes a schedule and evaluation plan for 
                the planning, installation, and management of the new 
                and existing conservation activities.
            ``(4) Priority resource concern.--The term `priority 
        resource concern' means a resource concern that is identified 
        at the State level, in consultation with the State Technical 
        Committee, as a priority for a particular watershed or area of 
        the State.
            ``(5) Program.--The term `program' means the conservation 
        stewardship program established by this subchapter.
            ``(6) Resource concern.--The term `resource concern' means 
        a specific natural resource impairment or problem, as 
        determined by the Secretary, that--
                    ``(A) represents a significant concern in a State 
                or region; and
                    ``(B) is likely to be addressed successfully 
                through the implementation of conservation activities 
                by producers on land eligible for enrollment in the 
                program.
            ``(7) Stewardship threshold.--The term `stewardship 
        threshold' means the level of natural resource conservation and 
        environmental management required, as determined by the 
        Secretary using conservation measurement tools, to improve and 
        conserve the quality and condition of a resource concern.

``SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM.

    ``(a) Establishment and Purpose.--During each of fiscal years 2009 
through 2012, the Secretary shall carry out a conservation stewardship 
program to encourage producers to address resource concerns in a 
comprehensive manner--
            ``(1) by undertaking additional conservation activities; 
        and
            ``(2) by improving, maintaining and managing existing 
        conservation activities.
    ``(b) Eligible Land.--
            ``(1) In general.--Except as provided in subsection (c), 
        the following land is eligible for enrollment in the program:
                    ``(A) Private agricultural land (including 
                cropland, grassland, prairie land, improved 
                pastureland, rangeland, and land used for agro-
                forestry).
                    ``(B) Agricultural land under the jurisdiction of 
                an Indian tribe.
                    ``(C) Forested land that is an incidental part of 
                an agricultural operation.
                    ``(D) Other private agricultural land (including 
                cropped woodland, marshes, and agricultural land used 
                for the production of livestock) on which resource 
                concerns related to agricultural production could be 
                addressed by enrolling the land in the program, as 
                determined by the Secretary.
            ``(2) Special rule for nonindustrial private forest land.--
        Nonindustrial private forest land is eligible for enrollment in 
        the program, except that not more than 10 percent of the annual 
        acres enrolled nationally in any fiscal year may be 
        nonindustrial private forest land.
            ``(3) Agricultural operation.--Eligible land shall include 
        all acres of an agricultural operation of a producer, whether 
        or not contiguous, that are under the effective control of the 
        producer at the time the producer enters into a stewardship 
        contract, and is operated by the producer with equipment, 
        labor, management, and production or cultivation practices that 
        are substantially separate from other agricultural operations, 
        as determined by the Secretary.
    ``(c) Exclusions.--
            ``(1) Land enrolled in other conservation programs.--
        Subject to paragraph (2), the following land is not be eligible 
        for enrollment in the program:
                    ``(A) Land enrolled in the conservation reserve 
                program.
                    ``(B) Land enrolled in the wetlands reserve 
                program.
                    ``(C) Land enrolled in the grassland reserve 
                program.
            ``(2) Conversion to cropland.--Land used for crop 
        production after the date of enactment of the Food, 
        Conservation, and Energy Act of 2008 that had not been planted, 
        considered to be planted, or devoted to crop production for at 
        least 4 of the 6 years preceding that date shall not be the 
        basis for any payment under the program, unless the land does 
        not meet the requirement because--
                    ``(A) the land had previously been enrolled in the 
                conservation reserve program;
                    ``(B) the land has been maintained using long-term 
                crop rotation practices, as determined by the 
                Secretary; or
                    ``(C) the land is incidental land needed for 
                efficient operation of the farm or ranch, as determined 
                by the Secretary.

``SEC. 1238F. STEWARDSHIP CONTRACTS.

    ``(a) Submission of Contract Offers.--To be eligible to participate 
in the conservation stewardship program, a producer shall submit to the 
Secretary for approval a contract offer that--
            ``(1) demonstrates to the satisfaction of the Secretary 
        that the producer, at the time of the contract offer, is 
        meeting the stewardship threshold for at least one resource 
        concern; and
            ``(2) would, at a minimum, meet or exceed the stewardship 
        threshold for at least 1 priority resource concern by the end 
        of the stewardship contract by--
                    ``(A) installing and adopting additional 
                conservation activities; and
                    ``(B) improving, maintaining, and managing 
                conservation activities in place at the operation of 
                the producer at the time the contract offer is accepted 
                by the Secretary.
    ``(b) Evaluation of Contract Offers.--
            ``(1) Ranking of applications.--In evaluating contract 
        offers made by producers to enter into contracts under the 
        program, the Secretary shall rank applications based on--
                    ``(A) the level of conservation treatment on all 
                applicable priority resource concerns at the time of 
                application, based to the maximum extent practicable on 
                conservation measurement tools;
                    ``(B) the degree to which the proposed conservation 
                treatment on applicable priority resource concerns 
                effectively increases conservation performance, based 
                to the maximum extent possible on conservation 
                measurement tools;
                    ``(C) the number of applicable priority resource 
                concerns proposed to be treated to meet or exceed the 
                stewardship threshold by the end of the contract;
                    ``(D) the extent to which other resource concerns, 
                in addition to priority resource concerns, will be 
                addressed to meet or exceed the stewardship threshold 
                by the end of the contract period; and
                    ``(E) the extent to which the actual and 
                anticipated environmental benefits from the contract 
                are provided at the least cost relative to other 
                similarly beneficial contract offers.
            ``(2) Prohibition.--The Secretary may not assign a higher 
        priority to any application because the applicant is willing to 
        accept a lower payment than the applicant would otherwise be 
        eligible to receive.
            ``(3) Additional criteria.--The Secretary may develop and 
        use such additional criteria for evaluating applications to 
        enroll in the program that the Secretary determines are 
        necessary to ensure that national, State, and local 
        conservation priorities are effectively addressed.
    ``(c) Entering Into Contracts.--After a determination that a 
producer is eligible for the program under subsection (a), and a 
determination that the contract offer ranks sufficiently high under the 
evaluation criteria under subsection (b), the Secretary shall enter 
into a conservation stewardship contract with the producer to enroll 
the land to be covered by the contract.
    ``(d) Contract Provisions.--
            ``(1) Term.--A conservation stewardship contract shall be 
        for a term of 5 years.
            ``(2) Provisions.--The conservation stewardship contract of 
        a producer shall--
                    ``(A) state the amount of the payment the Secretary 
                agrees to make to the producer for each year of the 
                conservation stewardship contract under section 
                1238G(e);
                    ``(B) require the producer--
                            ``(i) to implement during the term of the 
                        conservation stewardship contract the 
                        conservation stewardship plan approved by the 
                        Secretary;
                            ``(ii) to maintain, and make available to 
                        the Secretary at such times as the Secretary 
                        may request, appropriate records showing the 
                        effective and timely implementation of the 
                        conservation stewardship contract; and
                            ``(iii) not to engage in any activity 
                        during the term of the conservation stewardship 
                        contract on the eligible land covered by the 
                        contract that would interfere with the purposes 
                        of the conservation stewardship contract;
                    ``(C) permit all economic uses of the land that--
                            ``(i) maintain the agricultural nature of 
                        the land; and
                            ``(ii) are consistent with the conservation 
                        purposes of the conservation stewardship 
                        contract;
                    ``(D) include a provision to ensure that a producer 
                shall not be considered in violation of the contract 
                for failure to comply with the contract due to 
                circumstances beyond the control of the producer, 
                including a disaster or related condition, as 
                determined by the Secretary; and
                    ``(E) include such other provisions as the 
                Secretary determines necessary to ensure the purposes 
                of the program are achieved.
    ``(e) Contract Renewal.--At the end of an initial conservation 
stewardship contract of a producer, the Secretary may allow the 
producer to renew the contract for one additional five-year period if 
the producer--
            ``(1) demonstrates compliance with the terms of the 
        existing contract; and
            ``(2) agrees to adopt new conservation activities, as 
        determined by the Secretary.
    ``(f) Modification.--The Secretary may allow a producer to modify a 
stewardship contract if the Secretary determines that the modification 
is consistent with achieving the purposes of the program.
    ``(g) Contract Termination.--
            ``(1) Voluntary termination.--A producer may terminate a 
        conservation stewardship contract if the Secretary determines 
        that termination would not defeat the purposes of the program.
            ``(2) Involuntary termination.--The Secretary may terminate 
        a contract under this subchapter if the Secretary determines 
        that the producer violated the contract.
            ``(3) Repayment.--If a contract is terminated, the 
        Secretary may, consistent with the purposes of the program--
                    ``(A) allow the producer to retain payments already 
                received under the contract; or
                    ``(B) require repayment, in whole or in part, of 
                payments already received and assess liquidated 
                damages.
            ``(4) Change of interest in land subject to a contract.--
                    ``(A) In general.--Except as provided in paragraph 
                (B), a change in the interest of a producer in land 
                covered by a contract under this chapter shall result 
                in the termination of the contract with regard to that 
                land.
                    ``(B) Transfer of duties and rights.--Subparagraph 
                (A) shall not apply if--
                            ``(i) within a reasonable period of time 
                        (as determined by the Secretary) after the date 
                        of the change in the interest in land covered 
                        by a contract under the program, the transferee 
                        of the land provides written notice to the 
                        Secretary that all duties and rights under the 
                        contract have been transferred to, and assumed 
                        by, the transferee; and
                            ``(ii) the transferee meets the eligibility 
                        requirements of the program.
    ``(h) Coordination With Organic Certification.--The Secretary shall 
establish a transparent means by which producers may initiate organic 
certification under the Organic Foods Production Act of 1990 (7 U.S.C. 
6501 et. seq.) while participating in a contract under this subchapter.
    ``(i) On-Farm Research and Demonstration or Pilot Testing.--The 
Secretary may approve a contract offer under this subchapter that 
includes--
            ``(1) on-farm conservation research and demonstration 
        activities; and
            ``(2) pilot testing of new technologies or innovative 
        conservation practices.

``SEC. 1238G. DUTIES OF THE SECRETARY.

    ``(a) In General.--To achieve the conservation goals of a contract 
under the conservation stewardship program, the Secretary shall--
            ``(1) make the program available to eligible producers on a 
        continuous enrollment basis with 1 or more ranking periods, one 
        of which shall occur in the first quarter of each fiscal year;
            ``(2) identify not less than 3 nor more than 5 priority 
        resource concerns in a particular watershed or other 
        appropriate region or area within a State; and
            ``(3) develop reliable conservation measurement tools for 
        purposes of carrying out the program.
    ``(b) Allocation to States.--The Secretary shall allocate acres to 
States for enrollment, based--
            ``(1) primarily on each State's proportion of eligible 
        acres under section 1238E(b)(1) to the total number of eligible 
        acres in all States; and
            ``(2) also on consideration of--
                    ``(A) the extent and magnitude of the conservation 
                needs associated with agricultural production in each 
                State;
                    ``(B) the degree to which implementation of the 
                program in the State is, or will be, effective in 
                helping producers address those needs; and
                    ``(C) other considerations to achieve equitable 
                geographic distribution of funds, as determined by the 
                Secretary.
    ``(c) Specialty Crop and Organic Producers.--The Secretary shall 
ensure that outreach and technical assistance are available, and 
program specifications are appropriate to enable specialty crop and 
organic producers to participate in the program.
    ``(d) Acreage Enrollment Limitation.--During the period beginning 
on October 1, 2008, and ending on September 30, 2017, the Secretary 
shall, to the maximum extent practicable--
            ``(1) enroll in the program an additional 12,769,000 acres 
        for each fiscal year; and
            ``(2) manage the program to achieve a national average rate 
        of $18 per acre, which shall include the costs of all financial 
        assistance, technical assistance, and any other expenses 
        associated with enrollment or participation in the program.
    ``(e) Conservation Stewardship Payments.--
            ``(1) Availability of payments.--The Secretary shall 
        provide a payment under the program to compensate the producer 
        for--
                    ``(A) installing and adopting additional 
                conservation activities; and
                    ``(B) improving, maintaining, and managing 
                conservation activities in place at the operation of 
                the producer at the time the contract offer is accepted 
                by the Secretary.
            ``(2) Payment amount.--The amount of the conservation 
        stewardship payment shall be determined by the Secretary and 
        based, to the maximum extent practicable, on the following 
        factors:
                    ``(A) Costs incurred by the producer associated 
                with planning, design, materials, installation, labor, 
                management, maintenance, or training.
                    ``(B) Income forgone by the producer.
                    ``(C) Expected environmental benefits as determined 
                by conservation measurement tools.
            ``(3) Exclusions.--A payment to a producer under this 
        subsection shall not be provided for--
                    ``(A) the design, construction, or maintenance of 
                animal waste storage or treatment facilities or 
                associated waste transport or transfer devices for 
                animal feeding operations; or
                    ``(B) conservation activities for which there is no 
                cost incurred or income forgone to the producer.
            ``(4) Timing of payments.--
                    ``(A) In general.--The Secretary shall make 
                payments as soon as practicable after October 1 of each 
                fiscal year for activities carried out in the previous 
                fiscal year.
                    ``(B) Additional activities.--The Secretary shall 
                make payments to compensate producers for installation 
                of additional practices at the time at which the 
                practices are installed and adopted.
    ``(f) Supplemental Payments for Resource-Conserving Crop 
Rotations.--
            ``(1) Availability of payments.--The Secretary shall 
        provide additional payments to producers that, in participating 
        in the program, agree to adopt resource-conserving crop 
        rotations to achieve beneficial crop rotations as appropriate 
        for the land of the producers.
            ``(2) Beneficial crop rotations.--The Secretary shall 
        determine whether a resource-conserving crop rotation is a 
        beneficial crop rotation eligible for additional payments under 
        paragraph (1), based on whether the resource-conserving crop 
        rotation is designed to provide natural resource conservation 
        and production benefits.
            ``(3) Eligibility.--To be eligible to receive a payment 
        described in paragraph (1), a producer shall agree to adopt and 
        maintain beneficial resource-conserving crop rotations for the 
        term of the contract.
            ``(4) Resource-conserving crop rotation.--In this 
        subsection, the term `resource-conserving crop rotation' means 
        a crop rotation that--
                    ``(A) includes at least 1 resource conserving crop 
                (as defined by the Secretary);
                    ``(B) reduces erosion;
                    ``(C) improves soil fertility and tilth;
                    ``(D) interrupts pest cycles; and
                    ``(E) in applicable areas, reduces depletion of 
                soil moisture or otherwise reduces the need for 
                irrigation.
    ``(g) Payment Limitations.--A person or legal entity may not 
receive, directly or indirectly, payments under this subchapter that, 
in the aggregate, exceed $200,000 for all contracts entered into during 
any 5-year period, excluding funding arrangements with federally 
recognized Indian tribes or Alaska Native corporations, regardless of 
the number of contracts entered into under the program by the person or 
entity.
    ``(h) Regulations.--The Secretary shall promulgate regulations 
that--
            ``(1) prescribe such other rules as the Secretary 
        determines to be necessary to ensure a fair and reasonable 
        application of the limitations established under subsection 
        (g); and
            ``(2) otherwise enable the Secretary to carry out the 
        program.
    ``(i) Data.--The Secretary shall maintain detailed and segmented 
data on contracts and payments under the program to allow for 
quantification of the amount of payments made for--
            ``(1) the installation and adoption of additional 
        conservation activities and improvements to conservation 
        activities in place on the operation of a producer at the time 
        the conservation stewardship offer is accepted by the 
        Secretary;
            ``(2) participation in research, demonstration, and pilot 
        projects; and
            ``(3) the development and periodic assessment and 
        evaluation of conservation plans developed under this 
        subchapter.''.
    (b) Termination of Conservation Security Program Authority; Effect 
on Existing Contracts.--Section 1238A of the Food Security Act of 1985 
(16 U.S.C. 3838a) is amended by adding at the end the following new 
subsection:
    ``(g) Prohibition on Conservation Security Program Contracts; 
Effect on Existing Contracts.--
            ``(1) Prohibition.--A conservation security contract may 
        not be entered into or renewed under this subchapter after 
        September 30, 2008.
            ``(2) Exception.--This subchapter, and the terms and 
        conditions of the conservation security program, shall continue 
        to apply to--
                    ``(A) conservation security contracts entered into 
                on or before September 30, 2008; and
                    ``(B) any conservation security contract entered 
                into after that date, but for which the application for 
                the contract was received during the 2008 sign-up 
                period.
            ``(3) Effect on payments.--The Secretary shall make 
        payments under this subchapter with respect to conservation 
        security contracts described in paragraph (2) during the 
        remaining term of the contracts.
            ``(4) Regulations.--A contract described in paragraph (2) 
        may not be administered under the regulations issued to carry 
        out the conservation stewardship program.''.
    (c) Reference to Redesignated Subchapter.--Section 1238A(b)(3)(C) 
of title XII of the Food Security Act of 1985 (16 U.S.C. 
3838a(b)(3)(C)) is amended by striking ``subchapter C'' and inserting 
``subchapter D''.

         Subtitle E--Farmland Protection and Grassland Reserve

SEC. 2401. FARMLAND PROTECTION PROGRAM.

    (a) Definitions.--Section 1238H of the Food Security Act of 1985 
(16 U.S.C. 3838h) is amended--
            (1) by striking paragraph (1) and inserting the following 
        new paragraph:
            ``(1) Eligible entity.--The term `eligible entity' means--
                    ``(A) any agency of any State or local government 
                or an Indian tribe (including a farmland protection 
                board or land resource council established under State 
                law); or
                    ``(B) any organization that--
                            ``(i) is organized for, and at all times 
                        since the formation of the organization has 
                        been operated principally for, 1 or more of the 
                        conservation purposes specified in clause (i), 
                        (ii), (iii), or (iv) of section 170(h)(4)(A) of 
                        the Internal Revenue Code of 1986;
                            ``(ii) is an organization described in 
                        section 501(c)(3) of that Code that is exempt 
                        from taxation under section 501(a) of that 
                        Code; and
                            ``(iii) is--
                                    ``(I) described in paragraph (1) or 
                                (2) of section 509(a) of that Code; or
                                    ``(II) described in section 
                                509(a)(3), and is controlled by an 
                                organization described in section 
                                509(a)(2), of that Code.''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) by striking ``that--'' and inserting 
                        ``that is subject to a pending offer for 
                        purchase from an eligible entity and--''; and
                            (ii) by striking clauses (i) and (ii) and 
                        inserting the following new clauses:
                            ``(i) has prime, unique, or other 
                        productive soil;
                            ``(ii) contains historical or 
                        archaeological resources; or
                            ``(iii) the protection of which will 
                        further a State or local policy consistent with 
                        the purposes of the program.''; and
                    (B) in subparagraph (B)--
                            (i) in clause (iv), by striking ``and'' at 
                        the end; and
                            (ii) by striking clause (v) and inserting 
                        the following new clauses:
                            ``(v) forest land that--
                                    ``(I) contributes to the economic 
                                viability of an agricultural operation; 
                                or
                                    ``(II) serves as a buffer to 
                                protect an agricultural operation from 
                                development; and
                            ``(vi) land that is incidental to land 
                        described in clauses (i) through (v), if such 
                        land is necessary for the efficient 
                        administration of a conservation easement, as 
                        determined by the Secretary.''.
    (b) Farmland Protection.--Section 1238I of the Food Security Act of 
1985 (16 U.S.C. 3838i) is amended to read as follows:

``SEC. 1238I. FARMLAND PROTECTION PROGRAM.

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

SEC. 2402. FARM VIABILITY PROGRAM.

    Section 1238J(b) of the Food Security Act of 1985 (16 U.S.C. 
3838j(b)) is amended by striking ``2007'' and inserting ``2012''.

SEC. 2403. GRASSLAND RESERVE PROGRAM.

    Subchapter D of chapter 2 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3838n et seq.), as redesignated by 
section 2301(a)(1), is amended to read as follows:

               ``Subchapter D--Grassland Reserve Program

``SEC. 1238N. GRASSLAND RESERVE PROGRAM.

    ``(a) Establishment and Purpose.--The Secretary shall establish a 
grassland reserve program (referred to in this subchapter as the 
`program') for the purpose of assisting owners and operators in 
protecting grazing uses and related conservation values by restoring 
and conserving eligible land through rental contracts, easements, and 
restoration agreements.
    ``(b) Enrollment of Acreage.--
            ``(1) Acreage enrolled.--The Secretary shall enroll an 
        additional 1,220,000 acres of eligible land in the program 
        during fiscal years 2009 through 2012.
            ``(2) Methods of enrollment.--The Secretary shall enroll 
        eligible land in the program through the use of;
                    ``(A) a 10-year, 15-year, or 20-year rental 
                contract;
                    ``(B) a permanent easement; or
                    ``(C) in a State that imposes a maximum duration 
                for easements, an easement for the maximum duration 
                allowed under the law of that State.
            ``(3) Limitation.--Of the total amount of funds expended 
        under the program to acquire rental contracts and easements 
        described in paragraph (2), the Secretary shall use, to the 
        extent practicable--
                    ``(A) 40 percent for rental contacts; and
                    ``(B) 60 percent for easements.
            ``(4) Enrollment of conservation reserve land.--
                    ``(A) Priority.--Upon expiration of a contract 
                under subchapter B of chapter 1 of this subtitle, the 
                Secretary shall give priority for enrollment in the 
                program to land previously enrolled in the conservation 
                reserve program if--
                            ``(i) the land is eligible land, as defined 
                        in subsection (c); and
                            ``(ii) the Secretary determines that the 
                        land is of high ecological value and under 
                        significant threat of conversion to uses other 
                        than grazing.
                    ``(B) Maximum enrollment.--The number of acres of 
                land enrolled under the priority described in 
                subparagraph (A) in a calendar year shall not exceed 10 
                percent of the total number of acres enrolled in the 
                program in that calendar year.
    ``(c) Eligible Land Defined.--For purposes of the program, the term 
`eligible land' means private or tribal land that--
            ``(1) is grassland, land that contains forbs, or shrubland 
        (including improved rangeland and pastureland) for which 
        grazing is the predominant use;
            ``(2) is located in an area that has been historically 
        dominated by grassland, forbs, or shrubland, and the land--
                    ``(A) could provide habitat for animal or plant 
                populations of significant ecological value if the 
                land--
                            ``(i) is retained in its current use; or
                            ``(ii) is restored to a natural condition;
                    ``(B) contains historical or archaeological 
                resources; or
                    ``(C) would address issues raised by State, 
                regional, and national conservation priorities; or
            ``(3) is incidental to land described in paragraph (1) or 
        (2), if the incidental land is determined by the Secretary to 
        be necessary for the efficient administration of a rental 
        contract or easement under the program.

``SEC. 1238O. DUTIES OF OWNERS AND OPERATORS.

    ``(a) Rental Contracts.--To be eligible to enroll eligible land in 
the program under a rental contract, the owner or operator of the land 
shall agree--
            ``(1) to comply with the terms of the contract and, when 
        applicable, a restoration agreement;
            ``(2) to suspend any existing cropland base and allotment 
        history for the land under another program administered by the 
        Secretary; and
            ``(3) to implement a grazing management plan, as approved 
        by the Secretary, which may be modified upon mutual agreement 
        of the parties.
    ``(b) Easements.--To be eligible to enroll eligible land in the 
program through an easement, the owner of the land shall agree--
            ``(1) to grant an easement to the Secretary or to an 
        eligible entity described in section 1238Q;
            ``(2) to create and record an appropriate deed restriction 
        in accordance with applicable State law to reflect the 
        easement;
            ``(3) to provide a written statement of consent to the 
        easement signed by persons holding a security interest or any 
        vested interest in the land;
            ``(4) to provide proof of unencumbered title to the 
        underlying fee interest in the land that is the subject of the 
        easement;
            ``(5) to comply with the terms of the easement and, when 
        applicable, a restoration agreement;
            ``(6) to implement a grazing management plan, as approved 
        by the Secretary, which may be modified upon mutual agreement 
        of the parties; and
            ``(7) to eliminate any existing cropland base and allotment 
        history for the land under another program administered by the 
        Secretary.
    ``(c) Restoration Agreements.--
            ``(1) When applicable.--To be eligible for cost-share 
        assistance to restore eligible land subject to a rental 
        contract or an easement under the program, the owner or 
        operator of the land shall agree to comply with the terms of a 
        restoration agreement.
            ``(2) Terms and conditions.--The Secretary shall prescribe 
        the terms and conditions of a restoration agreement by which 
        eligible land that is subject to a rental contract or easement 
        under the program shall be restored.
            ``(3) Duties.--The restoration agreement shall describe the 
        respective duties of the owner or operator and the Secretary, 
        including the Federal share of restoration payments and 
        technical assistance.
    ``(d) Terms and Conditions Applicable to Rental Contracts and 
Easements.--
            ``(1) Permissible activities.--The terms and conditions of 
        a rental contract or easement under the program shall permit--
                    ``(A) common grazing practices, including 
                maintenance and necessary cultural practices, on the 
                land in a manner that is consistent with maintaining 
                the viability of grassland, forb, and shrub species 
                appropriate to that locality;
                    ``(B) haying, mowing, or harvesting for seed 
                production, subject to appropriate restrictions during 
                the nesting season for birds in the local area that are 
                in significant decline or are conserved in accordance 
                with Federal or State law, as determined by the State 
                Conservationist;
                    ``(C) fire presuppression, rehabilitation, and 
                construction of fire breaks; and
                    ``(D) grazing related activities, such as fencing 
                and livestock watering.
            ``(2) Prohibitions.--The terms and conditions of a rental 
        contract or easement under the program shall prohibit--
                    ``(A) the production of crops (other than hay), 
                fruit trees, vineyards, or any other agricultural 
                commodity that is inconsistent with maintaining grazing 
                land; and
                    ``(B) except as permitted under a restoration plan, 
                the conduct of any other activity that would be 
                inconsistent with maintaining grazing land enrolled in 
                the program.
            ``(3) Additional terms and conditions.--A rental contract 
        or easement under the program shall include such additional 
        provisions as the Secretary determines are appropriate to carry 
        out or facilitate the purposes and administration of the 
        program.
    ``(e) Violations.--On a violation of the terms or conditions of a 
rental contract, easement, or restoration agreement entered into under 
this section--
            ``(1) the contract or easement shall remain in force; and
            ``(2) the Secretary may require the owner or operator to 
        refund all or part of any payments received under the program, 
        with interest on the payments as determined appropriate by the 
        Secretary.

``SEC. 1238P. DUTIES OF SECRETARY.

    ``(a) Evaluation and Ranking of Applications.--
            ``(1) Criteria.--The Secretary shall establish criteria to 
        evaluate and rank applications for rental contracts and 
        easements under the program .
            ``(2) Considerations.--In establishing the criteria, the 
        Secretary shall emphasize support for--
                    ``(A) grazing operations;
                    ``(B) plant and animal biodiversity; and
                    ``(C) grassland, land that contains forbs, and 
                shrubland under the greatest threat of conversion to 
                uses other than grazing.
    ``(b) Payments.--
            ``(1) In general.--In return for the execution of a rental 
        contract or the granting of an easement by an owner or operator 
        under the program, the Secretary shall--
                    ``(A) make rental contract or easement payments to 
                the owner or operator in accordance with paragraphs (2) 
                and (3); and
                    ``(B) make payments to the owner or operator under 
                a restoration agreement for the Federal share of the 
                cost of restoration in accordance with paragraph (4).
            ``(2) Rental contract payments.--
                    ``(A) Percentage of grazing value of land.--In 
                return for the execution of a rental contract by an 
                owner or operator under the program, the Secretary 
                shall make annual payments during the term of the 
                contract in an amount, subject to subparagraph (B), 
                that is not more than 75 percent of the grazing value 
                of the land covered by the contract.
                    ``(B) Payment limitation.--Payments made under 1 or 
                more rental contracts to a person or legal entity, 
                directly or indirectly, may not exceed, in the 
                aggregate, $50,000 per year.
            ``(3) Easement payments.--
                    ``(A) In general.--Subject to subparagraph (B), in 
                return for the granting of an easement by an owner 
                under the program, the Secretary shall make easement 
                payments in an amount not to exceed the fair market 
                value of the land less the grazing value of the land 
                encumbered by the easement.
                    ``(B) Method for determination of compensation.--In 
                making a determination under subparagraph (A), the 
                Secretary shall pay as compensation for a easement 
                acquired under the program the lowest of--
                            ``(i) the fair market value of the land 
                        encumbered by the easement, as determined by 
                        the Secretary, using--
                                    ``(I) the Uniform Standards of 
                                Professional Appraisal Practices; or
                                    ``(II) an area-wide market analysis 
                                or survey;
                            ``(ii) the amount corresponding to a 
                        geographical cap, as determined by the 
                        Secretary in regulations; or
                            ``(iii) the offer made by the landowner.
                    ``(C) Schedule.--Easement payments may be provided 
                in up to 10 annual payments of equal or unequal amount, 
                as agreed to by the Secretary and the owner.
            ``(4) Restoration agreement payments.--
                    ``(A) Federal share of restoration.--The Secretary 
                shall make payments to an owner or operator under a 
                restoration agreement of not more than 50 percent of 
                the costs of carrying out measures and practices 
                necessary to restore functions and values of that land.
                    ``(B) Payment limitation.--Payments made under 1 or 
                more restoration agreements to a person or legal 
                entity, directly or indirectly, may not exceed, in the 
                aggregate, $50,000 per year.
            ``(5) Payments to others.--If an owner or operator who is 
        entitled to a payment under the program dies, becomes 
        incompetent, is otherwise unable to receive the payment, or is 
        succeeded by another person who renders or completes the 
        required performance, the Secretary shall make the payment, in 
        accordance with regulations promulgated by the Secretary and 
        without regard to any other provision of law, in such manner as 
        the Secretary determines is fair and reasonable in light of all 
        the circumstances.

``SEC. 1238Q. DELEGATION OF DUTY.

    ``(a) Authority to Delegate.--The Secretary may delegate a duty 
under the program--
            ``(1) by transferring title of ownership to an easement to 
        an eligible entity to hold and enforce; or
            ``(2) by entering into a cooperative agreement with an 
        eligible entity for the eligible entity to own, write, and 
        enforce an easement.
    ``(b) Eligible Entity Defined.--In this section, the term `eligible 
entity' means--
            ``(1) an agency of State or local government or an Indian 
        tribe; or
            ``(2) an organization that--
                    ``(A) is organized for, and at all times since the 
                formation of the organization has been operated 
                principally for, one or more of the conservation 
                purposes specified in clause (i), (ii), (iii), or (iv) 
                of section 170(h)(4)(A) of the Internal Revenue Code of 
                1986;
                    ``(B) is an organization described in section 
                501(c)(3) of that Code that is exempt from taxation 
                under section 501(a) of that Code; and
                    ``(C) is described in--
                            ``(i) paragraph (1) or (2) of section 
                        509(a) of that Code; or
                            ``(ii) in section 509(a)(3) of that Code, 
                        and is controlled by an organization described 
                        in section 509(a)(2) of that Code.
    ``(c) Transfer of Title of Ownership.--
            ``(1) Transfer.--The Secretary may transfer title of 
        ownership to an easement to an eligible entity to hold and 
        enforce, in lieu of the Secretary, subject to the right of the 
        Secretary to conduct periodic inspections and enforce the 
        easement, if--
                    ``(A) the Secretary determines that the transfer 
                will promote protection of grassland, land that 
                contains forbs, or shrubland;
                    ``(B) the owner authorizes the eligible entity to 
                hold or enforce the easement; and
                    ``(C) the eligible entity agrees to assume the 
                costs incurred in administering and enforcing the 
                easement, including the costs of restoration or 
                rehabilitation of the land as specified by the owner 
                and the eligible entity.
            ``(2) Application.--An eligible entity that seeks to hold 
        and enforce an easement shall apply to the Secretary for 
        approval.
            ``(3) Approval by secretary.--The Secretary may approve an 
        application described in paragraph (2) if the eligible entity--
                    ``(A) has the relevant experience necessary, as 
                appropriate for the application, to administer an 
                easement on grassland, land that contains forbs, or 
                shrubland;
                    ``(B) has a charter that describes a commitment to 
                conserving ranchland, agricultural land, or grassland 
                for grazing and conservation purposes; and
                    ``(C) has the resources necessary to effectuate the 
                purposes of the charter.
    ``(d) Cooperative Agreements.--
            ``(1) Authorized; terms and conditions.--The Secretary 
        shall establish the terms and conditions of a cooperative 
        agreement under which an eligible entity shall use funds 
        provided by the Secretary to own, write, and enforce an 
        easement, in lieu of the Secretary.
            ``(2) Minimum requirements.--At a minimum, the cooperative 
        agreement shall--
                    ``(A) specify the qualification of the eligible 
                entity to carry out the entity's responsibilities under 
                the program, including acquisition, monitoring, 
                enforcement, and implementation of management policies 
                and procedures that ensure the long-term integrity of 
                the easement protections;
                    ``(B) require the eligible entity to assume the 
                costs incurred in administering and enforcing the 
                easement, including the costs of restoration or 
                rehabilitation of the land as specified by the owner 
                and the eligible entity;
                    ``(C) specify the right of the Secretary to conduct 
                periodic inspections to verify the eligible entity's 
                enforcement of the easement;
                    ``(D) subject to subparagraph (E), identify a 
                specific project or a range of projects to be funded 
                under the agreement;
                    ``(E) allow, upon mutual agreement of the parties, 
                substitution of qualified projects that are identified 
                at the time of substitution;
                    ``(F) specify the manner in which the eligible 
                entity will evaluate and report the use of funds to the 
                Secretary;
                    ``(G) allow the eligible entity flexibility to 
                develop and use terms and conditions for easements, if 
                the Secretary finds the terms and conditions consistent 
                with the purposes of the program and adequate to enable 
                effective enforcement of the easements;
                    ``(H) if applicable, allow an eligible entity to 
                include a charitable donation or qualified conservation 
                contribution (as defined by section 170(h) of the 
                Internal Revenue Code of 1986) from the landowner from 
                which the easement will be purchased as part of the 
                entity's share of the cost to purchase an easement; and
                    ``(I) provide for a schedule of payments to an 
                eligible entity, as agreed to by the Secretary and the 
                eligible entity.
            ``(3) Cost sharing.--
                    ``(A) In general.--As part of a cooperative 
                agreement with an eligible entity under this 
                subsection, the Secretary may provide a share of the 
                purchase price of an easement under the program.
                    ``(B) Minimum share by eligible entity.--The 
                eligible entity shall be required to provide a share of 
                the purchase price at least equivalent to that provided 
                by the Secretary.
                    ``(C) Priority.--The Secretary may accord a higher 
                priority to proposals from eligible entities that 
                leverage a greater share of the purchase price of the 
                easement.
            ``(4) Violation.--If an eligible entity violates the terms 
        or conditions of a cooperative agreement entered into under 
        this subsection--
                    ``(A) the cooperative agreement shall remain in 
                force; and
                    ``(B) the Secretary may require the eligible entity 
                to refund all or part of any payments received by the 
                eligible entity under the program, with interest on the 
                payments as determined appropriate by the Secretary.
    ``(e) Protection of Federal Investment.--When delegating a duty 
under this section, the Secretary shall ensure that the terms of an 
easement include a contingent right of enforcement for the 
Department.''.

          Subtitle F--Environmental Quality Incentives Program

SEC. 2501. PURPOSES OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

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

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

SEC. 2502. DEFINITIONS.

    Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa-1) 
is amended to read as follows:

``SEC. 1240A. DEFINITIONS.

    ``In this chapter:
            ``(1) Eligible land.--
                    ``(A) In general.--The term `eligible land' means 
                land on which agricultural commodities, livestock, or 
                forest-related products are produced.
                    ``(B) Inclusions.--The term `eligible land' 
                includes the following:
                            ``(i) Cropland.
                            ``(ii) Grassland.
                            ``(iii) Rangeland.
                            ``(iv) Pasture land.
                            ``(v) Nonindustrial private forest land.
                            ``(vi) Other agricultural land (including 
                        cropped woodland, marshes, and agricultural 
                        land used for the production of livestock) on 
                        which resource concerns related to agricultural 
                        production could be addressed through a 
                        contract under the program, as determined by 
                        the Secretary.
            ``(2) National organic program.--The term `national organic 
        program' means the national organic program established under 
        the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et. 
        seq.).
            ``(3) Organic system plan.--The term `organic system plan' 
        means an organic plan approved under the national organic 
        program.
            ``(4) Payment.--The term `payment' means financial 
        assistance provided to a producer for performing practices 
        under this chapter, including compensation for--
                    ``(A) incurred costs associated with planning, 
                design, materials, equipment, installation, labor, 
                management, maintenance, or training; and
                    ``(B) income forgone by the producer.
            ``(5) Practice.--The term `practice' means 1 or more 
        improvements and conservation activities that are consistent 
        with the purposes of the program under this chapter, as 
        determined by the Secretary, including--
                    ``(A) improvements to eligible land of the 
                producer, including--
                            ``(i) structural practices;
                            ``(ii) land management practices;
                            ``(iii) vegetative practices;
                            ``(iv) forest management; and
                            ``(v) other practices that the Secretary 
                        determines would further the purposes of the 
                        program; and
                    ``(B) conservation activities involving the 
                development of plans appropriate for the eligible land 
                of the producer, including--
                            ``(i) comprehensive nutrient management 
                        planning; and
                            ``(ii) other plans that the Secretary 
                        determines would further the purposes of the 
                        program under this chapter.
            ``(6) Program.--The term `program' means the environmental 
        quality incentives program established by this chapter.''.

SEC. 2503. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY 
              INCENTIVES PROGRAM.

    Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa-2) 
is amended to read as follows:

``SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION.

    ``(a) Establishment.--During each of the 2002 through 2012 fiscal 
years, the Secretary shall provide payments to producers that enter 
into contracts with the Secretary under the program.
    ``(b) Practices and Term.--
            ``(1) Practices.--A contract under the program may apply to 
        the performance of one or more practices.
            ``(2) Term.--A contract under the program shall have a term 
        that--
                    ``(A) at a minimum, is equal to the period 
                beginning on the date on which the contract is entered 
                into and ending on the date that is one year after the 
                date on which all practices under the contract have 
                been implemented; but
                    ``(B) not to exceed 10 years.
    ``(c) Bidding Down.--If the Secretary determines that the 
environmental values of two or more applications for payments are 
comparable, the Secretary shall not assign a higher priority to the 
application only because it would present the least cost to the 
program.
    ``(d) Payments.--
            ``(1) Availability of payments.--Payments are provided to a 
        producer to implement one or more practices under the program.
            ``(2) Limitation on payment amounts.--A payment to a 
        producer for performing a practice may not exceed, as 
        determined by the Secretary--
                    ``(A) 75 percent of the costs associated with 
                planning, design, materials, equipment, installation, 
                labor, management, maintenance, or training;
                    ``(B) 100 percent of income foregone by the 
                producer; or
                    ``(C) in the case of a practice consisting of 
                elements covered under subparagraphs (A) and (B)--
                            ``(i) 75 percent of the costs incurred for 
                        those elements covered under subparagraph (A); 
                        and
                            ``(ii) 100 percent of income foregone for 
                        those elements covered under subparagraph (B).
            ``(3) Special rule involving payments for foregone 
        income.--In determining the amount and rate of payments under 
        paragraph (2)(B), the Secretary may accord great significance 
        to a practice that, as determined by the Secretary, promotes--
                    ``(A) residue management;
                    ``(B) nutrient management;
                    ``(C) air quality management;
                    ``(D) invasive species management;
                    ``(E) pollinator habitat;
                    ``(F) animal carcass management technology; or
                    ``(G) pest management.
            ``(4) Increased payments for certain producers.--
                    ``(A) In general.--Notwithstanding paragraph (2), 
                in the case of a producer that is a limited resource, 
                socially disadvantaged farmer or rancher or a beginning 
                farmer or rancher, the Secretary shall increase the 
                amount that would otherwise be provided to a producer 
                under this subsection--
                            ``(i) to not more than 90 percent of the 
                        costs associated with planning, design, 
                        materials, equipment, installation, labor, 
                        management, maintenance, or training; and
                            ``(ii) to not less than 25 percent above 
                        the otherwise applicable rate.
                    ``(B) Advance payments.--Not more than 30 percent 
                of the amount determined under subparagraph (A) may be 
                provided in advance for the purpose of purchasing 
                materials or contracting.
            ``(5) Financial assistance from other sources.--Except as 
        provided in paragraph (6), any payments received by a producer 
        from a State or private organization or person for the 
        implementation of one or more practices on eligible land of the 
        producer shall be in addition to the payments provided to the 
        producer under this subsection.
            ``(6) Other payments.--A producer shall not be eligible for 
        payments for practices on eligible land under the program if 
        the producer receives payments or other benefits for the same 
        practice on the same land under another program under this 
        subtitle.
    ``(e) Modification or Termination of Contracts.--
            ``(1) Voluntary modification or termination.--The Secretary 
        may modify or terminate a contract entered into with a producer 
        under the program if--
                    ``(A) the producer agrees to the modification or 
                termination; and
                    ``(B) the Secretary determines that the 
                modification or termination is in the public interest.
            ``(2) Involuntary termination.--The Secretary may terminate 
        a contract under the program if the Secretary determines that 
        the producer violated the contract.
    ``(f) Allocation of Funding.--For each of fiscal years 2002 through 
2012, 60 percent of the funds made available for payments under the 
program shall be targeted at practices relating to livestock 
production.
    ``(g) Funding for Federally Recognized Native American Indian 
Tribes and Alaska Native Corporations.--The Secretary may enter into 
alternative funding arrangements with federally recognized Native 
American Indian Tribes and Alaska Native Corporations (including their 
affiliated membership organizations) if the Secretary determines that 
the goals and objectives of the program will be met by such 
arrangements, and that statutory limitations regarding contracts with 
individual producers will not be exceeded by any Tribal or Native 
Corporation member.
    ``(h) Water Conservation or Irrigation Efficiency Practice.--
            ``(1) Availability of payments.--The Secretary may provide 
        payments under this subsection to a producer for a water 
        conservation or irrigation practice.
            ``(2) Priority.--In providing payments to a producer for a 
        water conservation or irrigation practice, the Secretary shall 
        give priority to applications in which--
                    ``(A) consistent with the law of the State in which 
                the eligible land of the producer is located, there is 
                a reduction in water use in the operation of the 
                producer; or
                    ``(B) the producer agrees not to use any associated 
                water savings to bring new land, other than incidental 
                land needed for efficient operations, under irrigated 
                production, unless the producer is participating in a 
                watershed-wide project that will effectively conserve 
                water, as determined by the Secretary.
    ``(i) Payments for Conservation Practices Related to Organic 
Production.--
            ``(1) Payments authorized.--The Secretary shall provide 
        payments under this subsection for conservation practices, on 
        some or all of the operations of a producer, related--
                    ``(A) to organic production; and
                    ``(B) to the transition to organic production.
            ``(2) Eligibility requirements.--As a condition for 
        receiving payments under this subsection, a producer shall 
        agree--
                    ``(A) to develop and carry out an organic system 
                plan; or
                    ``(B) to develop and implement conservation 
                practices for certified organic production that are 
                consistent with an organic system plan and the purposes 
                of this chapter.
            ``(3) Payment limitations.--Payments under this subsection 
        to a person or legal entity, directly or indirectly, may not 
        exceed, in the aggregate, $20,000 per year or $80,000 during 
        any 6-year period. In applying these limitations, the Secretary 
        shall not take into account payments received for technical 
        assistance.
            ``(4) Exclusion of certain organic certification costs.--
        Payments may not be made under this subsection to cover the 
        costs associated with organic certification that are eligible 
        for cost-share payments under section 10606 of the Farm 
        Security and Rural Investment Act of 2002 (7 U.S.C. 6523).
            ``(5) Termination of contracts.--The Secretary may cancel 
        or otherwise nullify a contract to provide payments under this 
        subsection if the Secretary determines that the producer--
                    ``(A) is not pursuing organic certification; or
                    ``(B) is not in compliance with the Organic Foods 
                Production Act of 1990 (7 U.S.C. 6501 et seq).''.

SEC. 2504. EVALUATION OF APPLICATIONS.

    Section 1240C of the Food Security Act of 1985 (16 U.S.C. 3839aa-3) 
is amended to read as follows:

``SEC. 1240C. EVALUATION OF APPLICATIONS.

    ``(a) Evaluation Criteria.--The Secretary shall develop criteria 
for evaluating applications that will ensure that national, State, and 
local conservation priorities are effectively addressed.
    ``(b) Prioritization of Applications.--In evaluating applications 
under this chapter, the Secretary shall prioritize applications--
            ``(1) based on their overall level of cost-effectiveness to 
        ensure that the conservation practices and approaches proposed 
        are the most efficient means of achieving the anticipated 
        environmental benefits of the project;
            ``(2) based on how effectively and comprehensively the 
        project addresses the designated resource concern or resource 
        concerns;
            ``(3) that best fulfill the purpose of the environmental 
        quality incentives program specified in section 1240(1); and
            ``(4) that improve conservation practices or systems in 
        place on the operation at the time the contract offer is 
        accepted or that will complete a conservation system.
    ``(c) Grouping of Applications.--To the greatest extent 
practicable, the Secretary shall group applications of similar crop or 
livestock operations for evaluation purposes or otherwise evaluate 
applications relative to other applications for similar farming 
operations.''.

SEC. 2505. DUTIES OF PRODUCERS UNDER ENVIRONMENTAL QUALITY INCENTIVES 
              PROGRAM.

    Section 1240D of the Food Security Act of 1985 (16 U.S.C. 3839aa-4) 
is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``technical assistance, cost-share payments, or incentive'';
            (2) in paragraph (2), by striking ``farm or ranch'' and 
        inserting ``farm, ranch, or forest land''; and
            (3) in paragraph (4), by striking ``cost-share payments and 
        incentive''.

SEC. 2506. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

    (a) Plan of Operations.--Section 1240E(a) of the Food Security Act 
of 1985 (16 U.S.C. 3839aa-5(a)) is amended--
            (1) in the subsection heading, by striking ``In General'' 
        and inserting ``Plan of Operations'';
            (2) in matter preceding paragraph (1), by striking ``cost-
        share payments or incentive'';
            (3) in paragraph (2), by striking ``and'' after the 
        semicolon at the end;
            (4) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (5) by adding at the end the following new paragraph:
            ``(4) in the case of forest land, is consistent with the 
        provisions of a forest management plan that is approved by the 
        Secretary, which may include--
                    ``(A) a forest stewardship plan described in 
                section 5 of the Cooperative Forestry Assistance Act of 
                1978 (16 U.S.C. 2103a);
                    ``(B) another practice plan approved by the State 
                forester; or
                    ``(C) another plan determined appropriate by the 
                Secretary.''.
    (b) Avoidance of Duplication.--Subsection (b) of section 1240E of 
the Food Security Act of 1985 (16 U.S.C. 3839aa-5) is amended to read 
as follows:
    ``(b) Avoidance of Duplication.--The Secretary shall--
            ``(1) consider a plan developed in order to acquire a 
        permit under a water or air quality regulatory program as the 
        equivalent of a plan of operations under subsection (a), if the 
        plan contains elements equivalent to those elements required by 
        a plan of operations; and
            ``(2) to the maximum extent practicable, eliminate 
        duplication of planning activities under the program under this 
        chapter and comparable conservation programs.''.

SEC. 2507. DUTIES OF THE SECRETARY.

    Section 1240F(1) of the Food Security Act of 1985 (16 U.S.C. 
3839aa-6(1)) is amended by striking ``cost-share payments or 
incentive''.

SEC. 2508. LIMITATION ON ENVIRONMENTAL QUALITY INCENTIVES PROGRAM 
              PAYMENTS.

    Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa-7) 
is amended--
            (1) by striking ``An individual or entity'' and inserting 
        ``(a) limitation.--Subject to subsection (b), a person or legal 
        entity'';
            (2) by striking ``$450,000'' and inserting ``$300,000'';
            (3) by striking ``the individual'' both places it appears 
        and inserting ``the person''; and
            (4) by adding at the end the following new subsection:
    ``(b) Waiver Authority.--In the case of contracts under this 
chapter for projects of special environmental significance (including 
projects involving methane digesters), as determined by the Secretary, 
the Secretary may--
            ``(1) waive the limitation otherwise applicable under 
        subsection (a); and
            ``(2) raise the limitation to not more than $450,000 during 
        any six-year period.''.

SEC. 2509. CONSERVATION INNOVATION GRANTS AND PAYMENTS.

    Section 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa-8) 
is amended to read as follows:

``SEC. 1240H. CONSERVATION INNOVATION GRANTS AND PAYMENTS.

    ``(a) Competitive Grants for Innovative Conservation Approaches.--
            ``(1) Grants.--Out of the funds made available to carry out 
        this chapter, the Secretary may pay the cost of competitive 
        grants that are intended to stimulate innovative approaches to 
        leveraging the Federal investment in environmental enhancement 
        and protection, in conjunction with agricultural production or 
        forest resource management, through the program.
            ``(2) Use.--The Secretary may provide grants under this 
        subsection to governmental and non-governmental organizations 
        and persons, on a competitive basis, to carry out projects 
        that--
                    ``(A) involve producers who are eligible for 
                payments or technical assistance under the program;
                    ``(B) leverage Federal funds made available to 
                carry out the program under this chapter with matching 
                funds provided by State and local governments and 
                private organizations to promote environmental 
                enhancement and protection in conjunction with 
                agricultural production;
                    ``(C) ensure efficient and effective transfer of 
                innovative technologies and approaches demonstrated 
                through projects that receive funding under this 
                section, such as market systems for pollution reduction 
                and practices for the storage of carbon in soil; and
                    ``(D) provide environmental and resource 
                conservation benefits through increased participation 
                by producers of specialty crops.
    ``(b) Air Quality Concerns From Agricultural Operations.--
            ``(1) Implementation assistance.--The Secretary shall 
        provide payments under this subsection to producers to 
        implement practices to address air quality concerns from 
        agricultural operations and to meet Federal, State, and local 
        regulatory requirements. The funds shall be made available on 
        the basis of air quality concerns in a State and shall be used 
        to provide payments to producers that are cost effective and 
        reflect innovative technologies.
            ``(2) Funding.--Of the funds made available to carry out 
        this chapter, the Secretary shall carry out this subsection 
        using $37,500,000 for each of fiscal years 2009 through 
        2012.''.

SEC. 2510. AGRICULTURAL WATER ENHANCEMENT PROGRAM.

    Section 1240I of the Food Security Act of 1985 (16 U.S.C. 3839aa-9) 
is amended to read as follows:

``SEC. 1240I. AGRICULTURAL WATER ENHANCEMENT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Agricultural water enhancement activity.--The term 
        `agricultural water enhancement activity' includes the 
        following activities carried out with respect to agricultural 
        land:
                    ``(A) Water quality or water conservation plan 
                development, including resource condition assessment 
                and modeling.
                    ``(B) Water conservation restoration or enhancement 
                projects, including conversion to the production of 
                less water-intensive agricultural commodities or 
                dryland farming.
                    ``(C) Water quality or quantity restoration or 
                enhancement projects.
                    ``(D) Irrigation system improvement and irrigation 
                efficiency enhancement.
                    ``(E) Activities designed to mitigate the effects 
                of drought.
                    ``(F) Related activities that the Secretary 
                determines will help achieve water quality or water 
                conservation benefits on agricultural land.
            ``(2) Partner.--The term `partner' means an entity that 
        enters into a partnership agreement with the Secretary to carry 
        out agricultural water enhancement activities on a regional 
        basis, including--
                    ``(A) an agricultural or silvicultural producer 
                association or other group of such producers;
                    ``(B) a State or unit of local government; or
                    ``(C) a federally recognized Indian tribe.
            ``(3) Partnership agreement.--The term `partnership 
        agreement' means an agreement between the Secretary and a 
        partner.
            ``(4) Program.--The term `program' means the agricultural 
        water enhancement program established under subsection (b).
    ``(b) Establishment of Program.--Beginning in fiscal year 2009, the 
Secretary shall carry out, in accordance with this section and using 
such procedures as the Secretary determines to be appropriate, an 
agricultural water enhancement program as part of the environmental 
quality incentives program to promote ground and surface water 
conservation and improve water quality on agricultural lands--
            ``(1) by entering into contracts with, and making payments 
        to, producers to carry out agricultural water enhancement 
        activities; or
            ``(2) by entering into partnership agreements with 
        partners, in accordance with subsection (c), on a regional 
        level to benefit working agricultural land.
    ``(c) Partnership Agreements.--
            ``(1) Agreements authorized.--The Secretary may enter into 
        partnership agreements to meet the objectives of the program 
        described in subsection (b).
            ``(2) Applications.--An application to the Secretary to 
        enter into a partnership agreement under paragraph (1) shall 
        include the following:
                    ``(A) A description of the geographical area to be 
                covered by the partnership agreement.
                    ``(B) A description of the agricultural water 
                quality or water conservation issues to be addressed by 
                the partnership agreement.
                    ``(C) A description of the agricultural water 
                enhancement objectives to be achieved through the 
                partnership.
                    ``(D) A description of the partners collaborating 
                to achieve the project objectives and the roles, 
                responsibilities, and capabilities of each partner.
                    ``(E) A description of the program resources, 
                including payments the Secretary is requested to make.
                    ``(F) Such other such elements as the Secretary 
                considers necessary to adequately evaluate and 
                competitively select applications for partnership 
                agreements.
            ``(3) Duties of partners.--A partner under a partnership 
        agreement shall--
                    ``(A) identify producers participating in the 
                project and act on their behalf in applying for the 
                program;
                    ``(B) leverage funds provided by the Secretary with 
                additional funds to help achieve project objectives;
                    ``(C) conduct monitoring and evaluation of project 
                effects; and
                    ``(D) at the conclusion of the project, report to 
                the Secretary on project results.
    ``(d) Agricultural Water Enhancement Activities by Producers.--The 
Secretary shall select agricultural water enhancement activities 
proposed by producers according to applicable requirements under the 
environmental quality incentives program.
    ``(e) Agricultural Water Enhancement Activities by Partners.--
            ``(1) Competitive process.--The Secretary shall conduct a 
        competitive process to select partners. In carrying out the 
        process, the Secretary shall make public the criteria used in 
        evaluating applications.
            ``(2) Authority to give priority to certain proposals.--The 
        Secretary may give a higher priority to proposals from partners 
        that--
                    ``(A) include high percentages of agricultural land 
                and producers in a region or other appropriate area;
                    ``(B) result in high levels of applied agricultural 
                water quality and water conservation activities;
                    ``(C) significantly enhance agricultural activity;
                    ``(D) allow for monitoring and evaluation; and
                    ``(E) assist producers in meeting a regulatory 
                requirement that reduces the economic scope of the 
                producer's operation.
            ``(3) Priority to proposals from states with water quantity 
        concerns.--The Secretary shall give a higher priority to 
        proposals from partners that--
                    ``(A) include the conversion of agricultural land 
                from irrigated farming to dryland farming;
                    ``(B) leverage Federal funds provided under the 
                program with funds provided by partners; and
                    ``(C) assist producers in States with water 
                quantity concerns, as determined by the Secretary.
            ``(4) Administration.--In carrying out this subsection, the 
        Secretary shall--
                    ``(A) accept qualified applications--
                            ``(i) directly from partners applying on 
                        behalf of producers; or
                            ``(ii) from producers applying through a 
                        partner as part of a regional agricultural 
                        water enhancement project; and
                    ``(B) ensure that resources made available for 
                regional agricultural water enhancement activities are 
                delivered in accordance with applicable program rules.
    ``(f) Areas Experiencing Exceptional Drought.--Notwithstanding the 
purposes described in section 1240, the Secretary shall consider as an 
eligible agricultural water enhancement activity the use of a water 
impoundment to capture surface water runoff on agricultural land if the 
agricultural water enhancement activity--
            ``(1) is located in an area that is experiencing or has 
        experienced exceptional drought conditions during the previous 
        two calendar years; and
            ``(2) will capture surface water runoff through the 
        construction, improvement, or maintenance of irrigation ponds 
        or small, on-farm reservoirs.
    ``(g) Waiver Authority.--To assist in the implementation of 
agricultural water enhancement activities under the program, the 
Secretary shall waive the applicability of the limitation in section 
1001D(b)(2)(B) of this Act for participating producers if the Secretary 
determines that the waiver is necessary to fulfill the objectives of 
the program.
    ``(h) Payments Under Program.--
            ``(1) In general.--The Secretary shall provide appropriate 
        payments to producers participating in agricultural water 
        enhancement activities in an amount determined by the secretary 
        to be necessary to achieve the purposes of the program 
        described in subsection (b).
            ``(2) Payments to producers in states with water quantity 
        concerns.--The Secretary shall provide payments for a period of 
        five years to producers participating in agricultural water 
        enhancement activities under proposals described in subsection 
        (e)(3) in an amount sufficient to encourage producers to 
        convert from irrigated farming to dryland farming.
    ``(i) Consistency With State Law.--Any agricultural water 
enhancement activity conducted under the program shall be conducted in 
a manner consistent with State water law.
    ``(j) Funding.--
            ``(1) Availability of funds.--In addition to funds made 
        available to carry out this chapter under section 1241(a), the 
        Secretary shall carry out the program using, of the funds of 
        the Commodity Credit Corporation--
                    ``(A) $73,000,000 for each of fiscal years 2009 and 
                2010;
                    ``(B) $74,000,000 for fiscal year 2011; and
                    ``(C) $60,000,000 for fiscal year 2012 and each 
                fiscal year thereafter.
            ``(2) Limitation on administrative expenses.--None of the 
        funds made available for regional agricultural water 
        conservation activities under the program may be used to pay 
        for the administrative expenses of partners.''.

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

SEC. 2601. CONSERVATION OF PRIVATE GRAZING LAND.

    Section 1240M(e) of the Food Security Act of 1985 (16 U.S.C. 
3839bb(e)) is amended by striking ``2007'' and inserting ``2012''.

SEC. 2602. WILDLIFE HABITAT INCENTIVE PROGRAM.

    (a) Eligibility.--Section 1240N of the Food Security Act of 1985 
(16 U.S.C. 3839bb-1) is amended--
            (1) in subsection (a), by inserting before the period at 
        the end the following: ``for the development of wildlife 
        habitat on private agricultural land, nonindustrial private 
        forest land, and tribal lands''.
            (2) in subsection (b)(1), by striking ``landowners'' and 
        inserting ``owners of lands referred to in subsection (a)''.
    (b) Inclusion of Pivot Corners and Irregular Areas.--Section 
1240N(b)(1)(E) of the Food Security Act of 1985 (16 U.S.C. 3839bb-
1(b)(1)(E)) is amended by inserting before the period at the end the 
following: ``, including habitat developed on pivot corners and 
irregular areas''.
    (c) Cost Share for Long-Term Agreements.--Section 1240N(b)(2)(B) of 
the Food Security Act of 1985 (16 U.S.C. 3839bb-1(b)(2)(B)) is amended 
by striking ``15 percent'' and inserting ``25 percent''.
    (d) Priority for Certain Conservation Initiatives; Payment 
Limitation.--Section 1240N of the Food Security Act of 1985 (16 U.S.C. 
3839bb-1) is amended by adding at the end the following new 
subsections:
    ``(d) Priority for Certain Conservation Initiatives.--In carrying 
out this section, the Secretary may give priority to projects that 
would address issues raised by State, regional, and national 
conservation initiatives.
    ``(e) Payment Limitation.--Payments made to a person or legal 
entity, directly or indirectly, under the program may not exceed, in 
the aggregate, $50,000 per year.''.

SEC. 2603. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

    Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C. 
3839bb-2(b)) is amended by striking ``$5,000,000 for each of fiscal 
years 2002 through 2007'' and inserting ``$20,000,000 for each of 
fiscal years 2008 through 2012''.

SEC. 2604. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND SEDIMENT 
              CONTROL.

    Section 1240P of the Food Security Act of 1985 (16 U.S.C. 3839bb-3) 
is amended to read as follows:

``SEC. 1240P. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND SEDIMENT 
              CONTROL.

    ``(a) Program Authorized.--The Secretary may carry out the Great 
Lakes basin program for soil erosion and sediment control (referred to 
in this section as the `program'), including providing assistance to 
implement the recommendations of the Great Lakes Regional Collaboration 
Strategy to Restore and Protect the Great Lakes.
    ``(b) Consultation and Cooperation.--The Secretary shall carry out 
the program in consultation with the Great Lakes Commission created by 
Article IV of the Great Lakes Basin Compact (82 Stat. 415) and in 
cooperation with the Administrator of the Environmental Protection 
Agency and the Secretary of the Army.
    ``(c) Assistance.--In carrying out the program, the Secretary may--
            ``(1) provide project demonstration grants, provide 
        technical assistance, and carry out information and educational 
        programs to improve water quality in the Great Lakes basin by 
        reducing soil erosion and improving sediment control; and
            ``(2) establish a priority for projects and activities 
        that--
                    ``(A) directly reduce soil erosion or improve 
                sediment control;
                    ``(B) reduce soil loss in degraded rural 
                watersheds; or
                    ``(C) improve water quality for downstream 
                watersheds.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out the program $5,000,000 for 
each of fiscal years 2008 through 2012.''.

SEC. 2605. CHESAPEAKE BAY WATERSHED PROGRAM.

    Chapter 5 of subtitle D of title XII of the Food Security Act of 
1985 is amended by inserting after section 1240P (16 U.S.C. 3839bb-3) 
the following new section:

``SEC. 1240Q. CHESAPEAKE BAY WATERSHED.

    ``(a) Chesapeake Bay Watershed Defined.--In this section, the term 
`Chesapeake Bay watershed' means all tributaries, backwaters, and side 
channels, including their watersheds, draining into the Chesapeake Bay.
    ``(b) Establishment and Purpose.--The Secretary shall assist 
producers in implementing conservation activities on agricultural lands 
in the Chesapeake Bay watershed for the purposes of--
            ``(1) improving water quality and quantity in the 
        Chesapeake Bay watershed; and
            ``(2) restoring, enhancing, and preserving soil, air, and 
        related resources in the Chesapeake Bay watershed.
    ``(c) Conservation Activities.--The Secretary shall deliver the 
funds made available to carry out this section through applicable 
programs under this subtitle to assist producers in enhancing land and 
water resources--
            ``(1) by controlling erosion and reducing sediment and 
        nutrient levels in ground and surface water; and
            ``(2) by planning, designing, implementing, and evaluating 
        habitat conservation, restoration, and enhancement measures 
        where there is significant ecological value if the lands are--
                    ``(A) retained in their current use; or
                    ``(B) restored to their natural condition.
    ``(d) Agreements.--
            ``(1) In general.--The Secretary shall--
                    ``(A) enter into agreements with producers to carry 
                out the purposes of this section; and
                    ``(B) use the funds made available to carry out 
                this section to cover the costs of the program involved 
                with each agreement.
            ``(2) Special considerations.--In entering into agreements 
        under this subsection, the Secretary shall give special 
        consideration to, and begin evaluating, applications with 
        producers in the following river basins:
                    ``(A) The Susquehanna River.
                    ``(B) The Shenandoah River.
                    ``(C) The Potomac River (including North and South 
                Potomac).
                    ``(D) The Patuxent River.
    ``(e) Duties of the Secretary.--In carrying out the purposes in 
this section, the Secretary shall--
            ``(1) where available, use existing plans, models, and 
        assessments to assist producers in implementing conservation 
        activities; and
            ``(2) proceed expeditiously with the implementation of any 
        agreement with a producer that is consistent with State 
        strategies for the restoration of the Chesapeake Bay watershed.
    ``(f) Consultation.--The Secretary, in consultation with 
appropriate Federal agencies, shall ensure conservation activities 
carried out under this section complement Federal and State programs, 
including programs that address water quality, in the Chesapeake Bay 
watershed.
    ``(g) Sense of Congress Regarding Chesapeake Bay Executive 
Council.--It is the sense of Congress that the Secretary should be a 
member of the Chesapeake Bay Executive Council, and is authorized to do 
so under section 1(3) of the Soil Conservation and Domestic Allotment 
Act (16 U.S.C. 590a(3)).
    ``(h) Funding.--
            ``(1) Availability.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use, to the maximum extent 
        practicable--
                    ``(A) $23,000,000 for fiscal year 2009;
                    ``(B) $43,000,000 for fiscal year 2010;
                    ``(C) $72,000,000 for fiscal year 2011; and
                    ``(D) $50,000,000 for fiscal year 2012.
            ``(2) Duration of availability.--Funds made available under 
        paragraph (1) shall remain available until expended.''

SEC. 2606. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM.

    Chapter 5 of subtitle D of title XII of the Food Security Act of 
1985 (16 U.S.C. 3839bb et seq.) is amended by inserting after section 
1240Q, as added by section 2605, the following new section:

``SEC. 1240R. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM.

    ``(a) Establishment.--The Secretary shall establish a voluntary 
public access program under which States and tribal governments may 
apply for grants to encourage owners and operators of privately-held 
farm, ranch, and forest land to voluntarily make that land available 
for access by the public for wildlife-dependent recreation, including 
hunting or fishing under programs administered by the States and tribal 
governments.
    ``(b) Applications.--In submitting applications for a grant under 
the program, a State or tribal government shall describe--
            ``(1) the benefits that the State or tribal government 
        intends to achieve by encouraging public access to private farm 
        and ranch land for--
                    ``(A) hunting and fishing; and
                    ``(B) to the maximum extent practicable, other 
                recreational purposes; and
            ``(2) the methods that will be used to achieve those 
        benefits.
    ``(c) Priority.--In approving applications and awarding grants 
under the program, the Secretary shall give priority to States and 
tribal governments that propose--
            ``(1) to maximize participation by offering a program the 
        terms of which are likely to meet with widespread acceptance 
        among landowners;
            ``(2) to ensure that land enrolled under the State or 
        tribal government program has appropriate wildlife habitat;
            ``(3) to strengthen wildlife habitat improvement efforts on 
        land enrolled in a special conservation reserve enhancement 
        program described in section 1234(f)(4) by providing incentives 
        to increase public hunting and other recreational access on 
        that land;
            ``(4) to use additional Federal, State, tribal government, 
        or private resources in carrying out the program; and
            ``(5) to make available to the public the location of land 
        enrolled.
    ``(d) Relationship to Other Laws.--
            ``(1) No preemption.--Nothing in this section preempts a 
        State or tribal government law, including any State or tribal 
        government liability law.
            ``(2) Effect of inconsistent opening dates for migratory 
        bird hunting.--The Secretary shall reduce by 25 percent the 
        amount of a grant otherwise determined for a State under the 
        program if the opening dates for migratory bird hunting in the 
        State are not consistent for residents and non-residents.
    ``(e) Regulations.--The Secretary shall promulgate such regulations 
as are necessary to carry out this section.
    ``(f) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use, to the maximum extent practicable, $50,000,000 
for the period of fiscal years 2009 through 2012.''.

    Subtitle H--Funding and Administration of Conservation Programs

SEC. 2701. FUNDING OF CONSERVATION PROGRAMS UNDER FOOD SECURITY ACT OF 
              1985.

    (a) In General.--Section 1241(a) of the Food Security Act of 1985 
(16 U.S.C. 3841(a)) is amended in the matter preceding paragraph (1), 
by striking ``2007'' and inserting ``2012''.
    (b) Conservation Reserve Program.--Paragraph (1) of section 1241(a) 
of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended by 
striking the period at the end and inserting the following: ``, 
including to the maximum extent practicable--
                    ``(A) $100,000,000 for the period of fiscal years 
                2009 through 2012 to provide cost share payments under 
                paragraph (3) of section 1234(b) in connection with 
                thinning activities conducted on land described in 
                subparagraph (A)(iii) of such paragraph; and
                    ``(B) $25,000,000 for the period of fiscal years 
                2009 through 2012 to carry out section 1235(f) to 
                facilitate the transfer of land subject to contracts 
                from retired or retiring owners and operators to 
                beginning farmers or ranchers and socially 
                disadvantaged farmers or ranchers.''.
    (c) Conservation Security and Conservation Stewardship Programs.--
Paragraph (3) of section 1241(a) of the Food Security Act of 1985 (16 
U.S.C. 3841(a)) is amended to read as follows:
            ``(3)(A) Conservation security program.--The conservation 
        security program under subchapter A of chapter 2, using such 
        sums as are necessary to administer contracts entered into 
        before September 30, 2008.
            ``(B) Conservation stewardship program.--The conservation 
        stewardship program under subchapter B of chapter 2.''.
    (d) Farmland Protection Program.--Paragraph (4) of section 1241(a) 
of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended to read 
as follows:
            ``(4) The farmland protection program under subchapter C of 
        chapter 2, using, to the maximum extent practicable--
                    ``(A) $97,000,000 in fiscal year 2008;
                    ``(B) $121,000,000 in fiscal year 2009;
                    ``(C) $150,000,000 in fiscal year 2010;
                    ``(D) $175,000,000 in fiscal year 2011; and
                    ``(E) $200,000,000 in fiscal year 2012.''.
    (e) Grassland Reserve Program.--Paragraph (5) of section 1241(a) of 
the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended to read as 
follows:
            ``(5) The grassland reserve program under subchapter D of 
        chapter 2.''.
    (f) Environmental Quality Incentives Program.--Paragraph (6) of 
section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is 
amended to read as follows:
            ``(6) The environmental quality incentives program under 
        chapter 4, using, to the maximum extent practicable--
                    ``(A) $1,200,000,000 in fiscal year 2008;
                    ``(B) $1,337,000,000 in fiscal year 2009;
                    ``(C) $1,450,000,000 in fiscal year 2010;
                    ``(D) $1,588,000,000 in fiscal year 2011; and
                    ``(E) $1,750,000,000 in fiscal year 2012.''.
    (g) Wildlife Habitat Incentives Program.--Paragraph (7)(D) of 
section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is 
amended by striking ``2007'' and inserting ``2012''.

SEC. 2702. AUTHORITY TO ACCEPT CONTRIBUTIONS TO SUPPORT CONSERVATION 
              PROGRAMS.

    Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is 
amended by adding at the end the following new subsection:
    ``(e) Acceptance and Use of Contributions.--
            ``(1) Authority to establish contribution accounts.--
        Subject to paragraph (2), the Secretary may establish a sub-
        account for each conservation program administered by the 
        Secretary under subtitle D to accept contributions of non-
        Federal funds to support the purposes of the program.
            ``(2) Deposit and use of contributions.--Contributions of 
        non-Federal funds received for a conservation program 
        administered by the Secretary under subtitle D shall be 
        deposited into the sub-account established under this 
        subsection for the program and shall be available to the 
        Secretary, without further appropriation and until expended, to 
        carry out the program.''.

SEC. 2703. REGIONAL EQUITY AND FLEXIBILITY.

    (a) Regional Equity and Flexibility.--Section 1241(d) of the Food 
Security Act of 1985 (16 U.S.C. 3841(d)) is amended--
            (1) by striking ``Before April 1'' and inserting the 
        following:
            ``(1) Priority funding to promote equity.--Before April 
        1'';
            (2) by striking ``$12,000,000'' and inserting 
        ``$15,000,000''; and
            (3) by adding at the end the following new paragraph:
            ``(2) Specific funding allocations.--In determining the 
        specific funding allocations for States under paragraph (1), 
        the Secretary shall consider the respective demand in each 
        State for each program covered by such paragraph.''.
    (b) Allocations Review and Update.--Section 1241 of the Food 
Security Act of 1985 (16 U.S.C. 3841) is amended by inserting after 
subsection (e), as added by section 2702, the following new subsection:
    ``(f) Allocations Review and Update.--
            ``(1) Review.--Not later than January 1, 2012, the 
        Secretary shall conduct a review of conservation programs and 
        authorities under this title that utilize allocation formulas 
        to determine the sufficiency of the formulas in accounting for 
        State-level economic factors, level of agricultural 
        infrastructure, or related factors that affect conservation 
        program costs.
            ``(2) Update.--The Secretary shall improve conservation 
        program allocation formulas as necessary to ensure that the 
        formulas adequately reflect the costs of carrying out the 
        conservation programs.''.

SEC. 2704. ASSISTANCE TO CERTAIN FARMERS AND RANCHERS TO IMPROVE THEIR 
              ACCESS TO CONSERVATION PROGRAMS.

    Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is 
amended by inserting after subsection (f), as added by section 2703(b), 
the following new subsection:
    ``(g) Assistance to Certain Farmers or Ranchers for Conservation 
Access.--
            ``(1) Assistance.--Of the funds made available for each of 
        fiscal years 2009 through 2012 to carry out the environmental 
        quality incentives program and the acres made available for 
        each of such fiscal years to carry out the conservation 
        stewardship program, the Secretary shall use, to the maximum 
        extent practicable--
                    ``(A) 5 percent to assist beginning farmers or 
                ranchers; and
                    ``(B) 5 percent to assist socially disadvantaged 
                farmers or ranchers.
            ``(2) Repooling of funds.--In any fiscal year, amounts not 
        obligated under paragraph (1) by a date determined by the 
        Secretary shall be available for payments and technical 
        assistance to all persons eligible for payments or technical 
        assistance in that fiscal year under the environmental quality 
        incentives program.
            ``(3) Repooling of acres.--In any fiscal year, acres not 
        obligated under paragraph (1) by a date determined by the 
        Secretary shall be available for use in that fiscal year under 
        the conservation stewardship program.''.

SEC. 2705. REPORT REGARDING ENROLLMENTS AND ASSISTANCE UNDER 
              CONSERVATION PROGRAMS.

    Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is 
amended by inserting after subsection (g), as added by section 2704, 
the following new subsection:
    ``(h) Report on Program Enrollments and Assistance.--Beginning in 
calendar year 2009, and each year thereafter, the Secretary shall 
submit to the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry of the Senate 
a semiannual report containing statistics by State related to 
enrollments in conservation programs under this subtitle, as follows:
            ``(1) Payments made under the wetlands reserve program for 
        easements valued at $250,000 or greater.
            ``(2) Payments made under the farmland protection program 
        for easements in which the Federal share is $250,000 or 
        greater.
            ``(3) Payments made under the grassland reserve program 
        valued at $250,000 or greater.
            ``(4) Payments made under the environmental quality 
        incentives program for land determined to have special 
        environmental significance pursuant to section 1240G(b).
            ``(5) Payments made under the agricultural water 
        enhancement program subject to the waiver of adjusted gross 
        income limitations pursuant to section 1240I(g).
            ``(6) Waivers granted by the Secretary under section 
        1001D(b)(2) of this Act in order to protect environmentally 
        sensitive land of special significance.''.

SEC. 2706. DELIVERY OF CONSERVATION TECHNICAL ASSISTANCE.

    Section 1242 of the Food Security Act of 1985 (16 U.S.C. 3842) is 
amended to read as follows:

``SEC. 1242. DELIVERY OF TECHNICAL ASSISTANCE.

    ``(a) Definition of Eligible Participant.--In this section, the 
term `eligible participant' means a producer, landowner, or entity that 
is participating in, or seeking to participate in, programs for which 
the producer, landowner, or entity is otherwise eligible to participate 
in under this title or the agricultural management assistance program 
under section 524 of the Federal Crop Insurance Act (7 U.S.C. 1524).
    ``(b) Purpose of Technical Assistance.--The purpose of technical 
assistance authorized by this section is to provide eligible 
participants with consistent, science-based, site-specific practices 
designed to achieve conservation objectives on land active in 
agricultural, forestry, or related uses.
    ``(c) Provision of Technical Assistance.--The Secretary shall 
provide technical assistance under this title to an eligible 
participant--
            ``(1) directly;
            ``(2) through an agreement with a third-party provider; or
            ``(3) at the option of the eligible participant, through a 
        payment, as determined by the Secretary, to the eligible 
        participant for an approved third-party provider, if available.
    ``(d) Non-Federal Assistance.--The Secretary may request the 
services of, and enter into cooperative agreements or contracts with, 
other agencies within the Department or non-Federal entities to assist 
the Secretary in providing technical assistance necessary to assist in 
implementing conservation programs under this title.
    ``(e) Certification of Third-Party Providers.--
            ``(1) Purpose.--The purpose of the third-party provider 
        program is to increase the availability and range of technical 
        expertise available to eligible participants to plan and 
        implement conservation measures.
            ``(2) Regulations.--Not later than 180 days after the date 
        of the enactment of the Food, Conservation, and Energy Act of 
        2008, the Secretary shall promulgate such regulations as are 
        necessary to carry out this section.
            ``(3) Expertise.--In promulgating such regulations, the 
        Secretary, to the maximum extent practicable, shall--
                    ``(A) ensure that persons with expertise in the 
                technical aspects of conservation planning, watershed 
                planning, and environmental engineering, including 
                commercial entities, nonprofit entities, State or local 
                governments or agencies, and other Federal agencies, 
                are eligible to become approved providers of the 
                technical assistance;
                    ``(B) provide national criteria for the 
                certification of third party providers; and
                    ``(C) approve any unique certification standards 
                established at the State level.
    ``(f) Administration.--
            ``(1) Funding.--Effective for fiscal year 2008 and each 
        subsequent fiscal year, funds of the Commodity Credit 
        Corporation made available to carry out technical assistance 
        for each of the programs specified in section 1241 shall be 
        available for the provision of technical assistance from third-
        party providers under this section.
            ``(2) Term of agreement.--An agreement with a third-party 
        provider under this section shall have a term that--
                    ``(A) at a minimum, is equal to the period 
                beginning on the date on which the agreement is entered 
                into and ending on the date that is 1 year after the 
                date on which all activities performed pursuant to the 
                agreement have been completed;
                    ``(B) does not exceed 3 years; and
                    ``(C) can be renewed, as determined by the 
                Secretary.
            ``(3) Review of certification requirements.--Not later than 
        1 year after the date of enactment of the Food, Conservation, 
        and Energy Act of 2008, the Secretary shall--
                    ``(A) review certification requirements for third-
                party providers; and
                    ``(B) make any adjustments considered necessary by 
                the Secretary to improve participation.
            ``(4) Eligible activities.--
                    ``(A) Inclusion of activities.--The Secretary may 
                include as activities eligible for payments to a third 
                party provider--
                            ``(i) technical services provided directly 
                        to eligible participants, such as conservation 
                        planning, education and outreach, and 
                        assistance with design and implementation of 
                        conservation practices; and
                            ``(ii) related technical assistance 
                        services that accelerate conservation program 
                        delivery.
                    ``(B) Exclusions.--The Secretary shall not 
                designate as an activity eligible for payments to a 
                third party provider any service that is provided by a 
                business, or equivalent, in connection with conducting 
                business and that is customarily provided at no cost.
            ``(5) Payment amounts.--The Secretary shall establish fair 
        and reasonable amounts of payments for technical services 
        provided by third-party providers.
    ``(g) Availability of Technical Services.--
            ``(1) In general.--In carrying out the programs under this 
        title and the agricultural management assistance program under 
        section 524 of the Federal Crop Insurance Act (7 U.S.C. 1524), 
        the Secretary shall make technical services available to all 
        eligible participants who are installing an eligible practice.
            ``(2) Technical service contracts.--In any case in which 
        financial assistance is not provided under a program referred 
        to in paragraph (1), the Secretary may enter into a technical 
        service contract with the eligible participant for the purposes 
        of assisting in the planning, design, or installation of an 
        eligible practice.
    ``(h) Review of Conservation Practice Standards.--
            ``(1) Review required.--The Secretary shall--
                    ``(A) review conservation practice standards, 
                including engineering design specifications, in effect 
                on the date of the enactment of the Food, Conservation, 
                and Energy Act of 2008;
                    ``(B) ensure, to the maximum extent practicable, 
                the completeness and relevance of the standards to 
                local agricultural, forestry, and natural resource 
                needs, including specialty crops, native and managed 
                pollinators, bioenergy crop production, forestry, and 
                such other needs as are determined by the Secretary; 
                and
                    ``(C) ensure that the standards provide for the 
                optimal balance between meeting site-specific 
                conservation needs and minimizing risks of design 
                failure and associated costs of construction and 
                installation.
            ``(2) Consultation.--In conducting the review under 
        paragraph (1), the Secretary shall consult with eligible 
        participants, crop consultants, cooperative extension and land 
        grant universities, nongovernmental organizations, and other 
        qualified entities.
            ``(3) Expedited revision of standards.--If the Secretary 
        determines under paragraph (1) that revisions to the 
        conservation practice standards, including engineering design 
        specifications, are necessary, the Secretary shall establish an 
        administrative process for expediting the revisions.
    ``(i) Addressing Concerns of Speciality Crop, Organic, and 
Precision Agriculture Producers.--
            ``(1) In general.--The Secretary shall--
                    ``(A) to the maximum extent practicable, fully 
                incorporate specialty crop production, organic crop 
                production, and precision agriculture into the 
                conservation practice standards; and
                    ``(B) provide for the appropriate range of 
                conservation practices and resource mitigation measures 
                available to producers involved with organic or 
                specialty crop production or precision agriculture.
            ``(2) Availability of adequate technical assistance.--
                    ``(A) In general.--The Secretary shall ensure that 
                adequate technical assistance is available for the 
                implementation of conservation practices by producers 
                involved with organic, specialty crop production, or 
                precision agriculture through Federal conservation 
                programs.
                    ``(B) Requirements.--In carrying out subparagraph 
                (A), the Secretary shall develop--
                            ``(i) programs that meet specific needs of 
                        producers involved with organic, specialty crop 
                        production or precision agriculture through 
                        cooperative agreements with other agencies and 
                        nongovernmental organizations; and
                            ``(ii) program specifications that allow 
                        for innovative approaches to engage local 
                        resources in providing technical assistance for 
                        planning and implementation of conservation 
                        practices.''.

SEC. 2707. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

    (a) Transfer of Existing Provisions.--Subsections (a), (c), and (d) 
of section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843) are--
            (1) redesignated as subsections (c), (d), and (e), 
        respectively; and
            (2) transferred to appear at the end of section 1244 of 
        such Act (16 U.S.C. 3844).
    (b) Establishment of Partnership Initiative.--Section 1243 of the 
Food Security Act of 1985 (16 U.S.C. 3843), as amended by subsection 
(a), is amended to read as follows:

``SEC. 1243. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

    ``(a) Establishment of Initiative.--The Secretary shall establish a 
cooperative conservation partnership initiative (in this section 
referred to as the `Initiative') to work with eligible partners to 
provide assistance to producers enrolled in a program described in 
subsection (c)(1) that will enhance conservation outcomes on 
agricultural and nonindustrial private forest land.
    ``(b) Purposes.--The purposes of a partnership entered into under 
the Initiative shall be--
            ``(1) to address conservation priorities involving 
        agriculture and nonindustrial private forest land on a local, 
        State, multi-State, or regional level;
            ``(2) to encourage producers to cooperate in meeting 
        applicable Federal, State, and local regulatory requirements 
        related to production involving agriculture and nonindustrial 
        private forest land;
            ``(3) to encourage producers to cooperate in the 
        installation and maintenance of conservation practices that 
        affect multiple agricultural or nonindustrial private forest 
        operations; or
            ``(4) to promote the development and demonstration of 
        innovative conservation practices and delivery methods, 
        including those for specialty crop and organic production and 
        precision agriculture producers.
    ``(c) Initiative Programs.--
            ``(1) Covered programs.--Except as provided in paragraph 
        (2), the Initiative applies to all conservation programs under 
        subtitle D.
            ``(2) Excluded programs.--The Initiative shall not include 
        the following programs:
                    ``(A) Conservation reserve program.
                    ``(B) Wetlands reserve program.
                    ``(C) Farmland protection program
                    ``(D) Grassland reserve program.
    ``(d) Eligible Partners.--The Secretary may enter into a 
partnership under the Initiative with one or more of the following:
            ``(1) States and local governments.
            ``(2) Indian tribes.
            ``(3) Producer associations.
            ``(4) Farmer cooperatives.
            ``(5) Institutions of higher education.
            ``(6) Nongovernmental organizations with a history of 
        working cooperatively with producers to effectively address 
        conservation priorities related to agricultural production and 
        nonindustrial private forest land.
    ``(e) Implementation Agreements.--The Secretary shall carry out the 
Initiative--
            ``(1) by selecting, through a competitive process, eligible 
        partners from among applications submitted under subsection 
        (f); and
            ``(2) by entering into multi-year agreements with eligible 
        partners so selected for a period not to exceed 5 years.
    ``(f) Applications.--
            ``(1) Required information.--An application to enter into a 
        partnership agreement under the Initiative shall include the 
        following:
                    ``(A) A description of the area covered by the 
                agreement, conservation priorities in the area, 
                conservation objectives to be achieved, and the 
                expected level of participation by agricultural 
                producers and nonindustrial private forest landowners.
                    ``(B) A description of the partner, or partners, 
                collaborating to achieve the objectives of the 
                agreement, and the roles, responsibilities, and 
                capabilities of the partner.
                    ``(C) A description of the resources that are 
                requested from the Secretary, and the non-Federal 
                resources that will be leveraged by the Federal 
                contribution.
                    ``(D) A description of the plan for monitoring, 
                evaluating, and reporting on progress made towards 
                achieving the objectives of the agreement.
                    ``(E) Such other information that may be required 
                by the Secretary.
            ``(2) Priorities.--The Secretary shall give priority to 
        applications for agreements that--
                    ``(A) have a high percentage of producers involved 
                and working agricultural or nonindustrial private 
                forest land included in the area covered by the 
                agreement;
                    ``(B) significantly leverage non-Federal financial 
                and technical resources and coordinate with other 
                local, State, or Federal efforts;
                    ``(C) deliver high percentages of applied 
                conservation to address water quality, water 
                conservation, or State, regional, or national 
                conservation initiatives;
                    ``(D) provide innovation in conservation methods 
                and delivery, including outcome-based performance 
                measures and methods; or
                    ``(E) meet other factors, as determined by the 
                Secretary.
    ``(g) Relationship to Covered Programs.--
            ``(1) Compliance with program rules.--Except as provided in 
        paragraph (2), the Secretary shall ensure that resources made 
        available under the Initiative are delivered in accordance with 
        the applicable rules of programs specified in subsection (c)(1) 
        through normal program mechanisms relating to program 
        functions, including rules governing appeals, payment 
        limitations, and conservation compliance.
            ``(2) Adjustment.--The Secretary may adjust the elements of 
        any program specified in subsection (c)(1)--
                    ``(A) to better reflect unique local circumstances 
                and purposes if the Secretary determines such 
                adjustments are necessary to achieve the purposes of 
                the Initiative; and
                    ``(B) to provide preferential enrollment to 
                producers who are eligible for the applicable program 
                and to participate in the Initiative.
    ``(h) Technical and Financial Assistance.--The Secretary shall 
provide appropriate technical and financial assistance to producers 
participating in the Initiative in an amount determined to be necessary 
to achieve the purposes of the Initiative.
    ``(i) Funding.--
            ``(1) Reservation.--Of the funds and acres made available 
        for each of fiscal years 2009 through 2012 to implement the 
        programs described in subsection (c)(1), the Secretary shall 
        reserve 6 percent of the funds and acres to ensure an adequate 
        source of funds and acres for the Initiative.
            ``(2) Allocation requirements.--Of the funds and acres 
        reserved for the Initiative for a fiscal year, the Secretary 
        shall allocate--
                    ``(A) 90 percent of the funds and acres to projects 
                based on the direction of State conservationists, with 
                the advice of State technical committees; and
                    ``(B) 10 percent of the funds and acres to projects 
                based on a national competitive process established by 
                the Secretary.
            ``(3) Unused funding.--Any funds and acres reserved for a 
        fiscal year under paragraph (1) that are not obligated by April 
        1 of that fiscal year may be used to carry out other activities 
        under the program that is the source of the funds or acres 
        during the remainder of that fiscal year.
            ``(4) Administrative costs of partners.--Overhead or 
        administrative costs of partners may not be covered by funds 
        provided through the Initiative.''.

SEC. 2708. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.

    Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844), as 
amended by section 2707, is further amended--
            (1) by striking subsection (a) and inserting the following 
        new subsection:
    ``(a) Incentives for Certain Farmers and Ranchers and Indian 
Tribes.--
            ``(1) Incentives authorized.--In carrying out any 
        conservation program administered by the Secretary, the 
        Secretary may provide to a person or entity specified in 
        paragraph (2) incentives to participate in the conservation 
        program--
                    ``(A) to foster new farming and ranching 
                opportunities; and
                    ``(B) to enhance long-term environmental goals.
            ``(2) Covered persons.--Incentives authorized by paragraph 
        (1) may be provided to the following:
                    ``(A) Beginning farmers or ranchers.
                    ``(B) Socially disadvantaged farmers or ranchers.
                    ``(C) Limited resource farmers or ranchers.
                    ``(D) Indian tribes.''; and
            (2) by adding at the end the following new subsections:
    ``(f) Acreage Limitations.--
            ``(1) Limitations.--
                    ``(A) Enrollments.--The Secretary shall not enroll 
                more than 25 percent of the cropland in any county in 
                the programs administered under subchapters B and C of 
                chapter 1 of subtitle D.
                    ``(B) Easements.--Not more than 10 percent of the 
                cropland in a country may be subject to an easement 
                acquired under subchapter C of chapter 1 of subtitle D.
            ``(2) Exceptions.--The Secretary may exceed the limitation 
        in paragraph (1)(A), if the Secretary determines that--
                    ``(A) the action would not adversely affect the 
                local economy of a county; and
                    ``(B) operators in the county are having 
                difficulties complying with conservation plans 
                implemented under section 1212.
            ``(3) Waiver to exclude certain acreage.--The Secretary may 
        grant a waiver to exclude acreage enrolled under subsection 
        (c)(2)(B) or (f)(4) of section 1234 from the limitations in 
        paragraph (1)(A) with the concurrence of the county government 
        of the county involved.
            ``(4) Shelterbelts and windbreaks.--The limitations 
        established under paragraph (1) shall not apply to cropland 
        that is subject to an easement under subchapter C of chapter 1 
        that is used for the establishment of shelterbelts and 
        windbreaks.
    ``(g) Compliance and Performance.--For each conservation program 
under subtitle D, the Secretary shall develop procedures--
            ``(1) to monitor compliance with program requirements;
            ``(2) to measure program performance;
            ``(3) to demonstrate whether the long-term conservation 
        benefits of the program are being achieved;
            ``(4) to track participation by crop and livestock types; 
        and
            ``(5) to coordinate activities described in this subsection 
        with the national conservation program authorized under section 
        5 of the Soil and Water Resources Conservation Act of 1977 (16 
        U.S.C. 2004).
    ``(h) Encouragement of Pollinator Habitat Development and 
Protection.--In carrying out any conservation program administered by 
the Secretary, the Secretary may, as appropriate, encourage--
            ``(1) the development of habitat for native and managed 
        pollinators; and
            ``(2) the use of conservation practices that benefit native 
        and managed pollinators.
    ``(i) Streamlined Application Process.--
            ``(1) In general.--In carrying out each conservation 
        program under this title, the Secretary shall ensure that the 
        application process used by producers and landowners is 
        streamlined to minimize complexity and eliminate redundancy.
            ``(2) Review and streamlining.--
                    ``(A) Review.--The Secretary shall carry out a 
                review of the application forms and processes for each 
                conservation program covered by this subsection.
                    ``(B) Streamlining.--On completion of the review 
                the Secretary shall revise application forms and 
                processes, as necessary, to ensure that--
                            ``(i) all required application information 
                        is essential for the efficient, effective, and 
                        accountable implementation of conservation 
                        programs;
                            ``(ii) conservation program applicants are 
                        not required to provide information that is 
                        readily available to the Secretary through 
                        existing information systems of the Department 
                        of Agriculture;
                            ``(iii) information provided by the 
                        applicant is managed and delivered efficiently 
                        for use in all stages of the application 
                        process, or for multiple applications; and
                            ``(iv) information technology is used 
                        effectively to minimize data and information 
                        input requirements.
            ``(3) Implementation and notification.--Not later than 1 
        year after the date of enactment of the Food, Conservation, and 
        Energy Act of 2008, the Secretary shall submit to Congress a 
        written notification of completion of the requirements of this 
        subsection.''.

SEC. 2709. ENVIRONMENTAL SERVICES MARKETS.

    Subtitle E of title XII of the Food Security Act of 1985 is amended 
by inserting after section 1244 (16 U.S.C. 3844) the following new 
section:

``SEC. 1245. ENVIRONMENTAL SERVICES MARKETS.

    ``(a) Technical Guidelines Required.--The Secretary shall establish 
technical guidelines that outline science-based methods to measure the 
environmental services benefits from conservation and land management 
activities in order to facilitate the participation of farmers, 
ranchers, and forest landowners in emerging environmental services 
markets. The Secretary shall give priority to the establishment of 
guidelines related to farmer, rancher, and forest landowner 
participation in carbon markets.
    ``(b) Establishment.--The Secretary shall establish guidelines 
under subsection (a) for use in developing the following:
            ``(1) A procedure to measure environmental services 
        benefits.
            ``(2) A protocol to report environmental services benefits.
            ``(3) A registry to collect, record and maintain the 
        benefits measured.
    ``(c) Verification Requirements.--
            ``(1) Verification of reports.--The Secretary shall 
        establish guidelines for a process to verify that a farmer, 
        rancher, or forest landowner who reports an environmental 
        services benefit pursuant to the protocol required by paragraph 
        (2) of subsection (b) for inclusion in the registry required by 
        paragraph (3) of such subsection has implemented the 
        conservation or land management activity covered by the report.
            ``(2) Role of third parties.--In establishing the 
        verification guidelines required by paragraph (1), the 
        Secretary shall consider the role of third-parties in 
        conducting independent verification of benefits produced for 
        environmental services markets and other functions, as 
        determined by the Secretary.
    ``(d) Use of Existing Information.--In carrying out subsection (b), 
the Secretary shall build on activities or information in existence on 
the date of the enactment of the Food, Conservation, and Energy Act of 
2008 regarding environmental services markets.
    ``(e) Consultation.--In carrying out this section, the Secretary 
shall consult with the following:
            ``(1) Federal and State government agencies.
            ``(2) Nongovernmental interests including--
                    ``(A) farm, ranch, and forestry producers;
                    ``(B) financial institutions involved in 
                environmental services trading;
                    ``(C) institutions of higher education with 
                relevant expertise or experience;
                    ``(D) nongovernmental organizations with relevant 
                expertise or experience; and
                    ``(E) private sector representatives with relevant 
                expertise or experience.
            ``(3) Other interested persons, as determined by the 
        Secretary.''.

SEC. 2710. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.

    Subtitle F of title XII of the Food Security Act of 1985 is amended 
by inserting after section 1251 (16 U.S.C. 2005a) the following new 
section:

``SEC. 1252. AGRICULTURE CONSERVATION EXPERIENCED SERVICES PROGRAM.

    ``(a) Establishment and Purpose.--The Secretary shall establish a 
conservation experienced services program (in this section referred to 
as the `ACES Program') for the purpose of utilizing the talents of 
individuals who are age 55 or older, but who are not employees of the 
Department of Agriculture or a State agriculture department, to provide 
technical services in support of the conservation-related programs and 
authorities carried out by the Secretary. Such technical services may 
include conservation planning assistance, technical consultation, and 
assistance with design and implementation of conservation practices.
    ``(b) Program Agreements.--
            ``(1) Relation to older american community service 
        employment program.--Notwithstanding any other provision of law 
        relating to Federal grants, cooperative agreements, or 
        contracts, to carry out the ACES program during a fiscal year, 
        the Secretary may enter into agreements with nonprofit private 
        agencies and organizations eligible to receive grants for that 
        fiscal year under the Community Service Senior Opportunities 
        Act (42 U.S.C. 3056 et seq.) to secure participants for the 
        ACES program who will provide technical services under the ACES 
        program.
            ``(2) Required determination.--Before entering into an 
        agreement under paragraph (1), the Secretary shall ensure that 
        the agreement would not--
                    ``(A) result in the displacement of individuals 
                employed by the Department, including partial 
                displacement through reduction of non-overtime hours, 
                wages, or employment benefits;
                    ``(B) result in the use of an individual under the 
                ACES program for a job or function in a case in which a 
                Federal employee is in a layoff status from the same or 
                a substantially-equivalent job or function with the 
                Department; or
                    ``(C) affect existing contracts for services.
    ``(c) Funding Source.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary may carry out the ACES program using funds made 
        available to carry out each program under this title.
            ``(2) Exclusions.--Funds made available to carry out the 
        following programs may not be used to carry out the ACES 
        program:
                    ``(A) The conservation reserve program.
                    ``(B) The wetlands reserve program.
                    ``(C) The grassland reserve program.
                    ``(D) The conservation stewardship program.
    ``(d) Liability.--An individual providing technical services under 
the ACES program is deemed to be an employee of the United States 
Government for purposes of chapter 171 of title 28, United States Code, 
if the individual--
            ``(1) is providing technical services pursuant to an 
        agreement entered into under subsection (b); and
            ``(2) is acting within the scope of the agreement.''.

SEC. 2711. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES AND THEIR 
              RESPONSIBILITIES.

    Subtitle G of title XII of the Farm Security Act of 1985 (16 U.S.C. 
3861, 3862) is amended to read as follows:

                ``Subtitle G--State Technical Committees

``SEC. 1261. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES.

    ``(a) Establishment.--The Secretary shall establish a technical 
committee in each State to assist the Secretary in the considerations 
relating to implementation and technical aspects of the conservation 
programs under this title.
    ``(b) Standards.--Not later than 180 days after the date of 
enactment of the Food, Conservation, and Energy Act of 2008, the 
Secretary shall develop--
            ``(1) standard operating procedures to standardize the 
        operations of State technical committees; and
            ``(2) standards to be used by State technical committees in 
        the development of technical guidelines under section 1262(b) 
        for the implementation of the conservation provisions of this 
        title.
    ``(c) Composition.--Each State technical committee shall be 
composed of agricultural producers and other professionals that 
represent a variety of disciplines in the soil, water, wetland, and 
wildlife sciences. The technical committee for a State shall include 
representatives from among the following:
            ``(1) The Natural Resources Conservation Service.
            ``(2) The Farm Service Agency.
            ``(3) The Forest Service.
            ``(4) The National Institute of Food and Agriculture.
            ``(5) The State fish and wildlife agency.
            ``(6) The State forester or equivalent State official.
            ``(7) The State water resources agency.
            ``(8) The State department of agriculture.
            ``(9) The State association of soil and water conservation 
        districts.
            ``(10) Agricultural producers representing the variety of 
        crops and livestock or poultry raised within the State.
            ``(11) Owners of nonindustrial private forest land.
            ``(12) Nonprofit organizations within the meaning of 
        section 501(c)(3) of the Internal Revenue Code of 1986 with 
        demonstrable conservation expertise and experience working with 
        agriculture producers in the State.
            ``(13) Agribusiness.

``SEC. 1262. RESPONSIBILITIES.

    ``(a) In General.--Each State technical committee established under 
section 1261 shall meet regularly to provide information, analysis, and 
recommendations to appropriate officials of the Department of 
Agriculture who are charged with implementing the conservation 
provisions of this title.
    ``(b) Public Notice and Attendance.--Each State technical committee 
shall provide public notice of, and permit public attendance at, 
meetings considering issues of concern related to carrying out this 
title.
    ``(c) Role.--
            ``(1) In general.--The role of State technical committees 
        is advisory in nature, and such committees shall have no 
        implementation or enforcement authority. However, the Secretary 
        shall give strong consideration to the recommendations of such 
        committees in administering the programs under this title.
            ``(2) Advisory role in establishing program priorities and 
        criteria.--Each State technical committee shall advise the 
        Secretary in establishing priorities and criteria for the 
        programs in this title, including the review of whether local 
        working groups are addressing those priorities.
    ``(d) FACA Requirements.--
            ``(1) Exemption.--Each State technical committee shall be 
        exempt from the Federal Advisory Committee Act (5 U.S.C. App.).
            ``(2) Local working groups.--For purposes of the Federal 
        Advisory Committee Act (5 U.S.C. App.), any local working group 
        established under this subtitle shall be considered to be a 
        subcommittee of the applicable State technical committee.''.

           Subtitle I--Conservation Programs Under Other Laws

SEC. 2801. AGRICULTURAL MANAGEMENT ASSISTANCE PROGRAM.

    (a) Eligible States.--Section 524(b)(1) of the Federal Crop 
Insurance Act (7 U.S.C. 1524(b)(1)) is amended by inserting ``Hawaii,'' 
after ``Delaware,''.
    (b) Funding.--Section 524(b)(4)(B) of the Federal Crop Insurance 
Act (7 U.S.C. 1524(b)(4)(B)) is amended--
            (1) in clause (i), by striking ``Except as provided in 
        clauses (ii) and (iii)'' and inserting ``Except as provided in 
        clause (ii)''; and
            (2) by striking clauses (ii) and (iii) and inserting the 
        following new clause:
                            ``(ii) Exception for fiscal years 2008 
                        through 2012.--For each of fiscal years 2008 
                        through 2012, the Commodity Credit Corporation 
                        shall make available to carry out this 
                        subsection $15,000,000.''.
    (c) Certain Uses.--Section 524(b)(4) of the Federal Crop Insurance 
Act (7 U.S.C. 1524(b)(4)) is amended by adding at the end the following 
new subparagraph:
                    ``(C) Certain uses.--Of the amounts made available 
                to carry out this subsection for a fiscal year, the 
                Commodity Credit Corporation shall use not less than--
                            ``(i) 50 percent to carry out subparagraphs 
                        (A), (B), and (C) of paragraph (2) through the 
                        Natural Resources Conservation Service;
                            ``(ii) 10 percent to provide organic 
                        certification cost share assistance through the 
                        Agricultural Marketing Service; and
                            ``(iii) 40 percent to conduct activities to 
                        carry out subparagraph (F) of paragraph (2) 
                        through the Risk Management Agency.''.

SEC. 2802. TECHNICAL ASSISTANCE UNDER SOIL CONSERVATION AND DOMESTIC 
              ALLOTMENT ACT.

    (a) Prevention of Soil Erosion.--
            (1) In general.--The first section of the Soil Conservation 
        and Domestic Allotment Act (16 U.S.C. 590a) is amended--
                    (A) by striking ``That it'' and inserting the 
                following:

``SECTION 1. PURPOSE.

    ``It''; and
                    (B) in the matter preceding paragraph (1), by 
                striking ``and thereby to preserve natural resources,'' 
                and inserting ``to preserve soil, water, and related 
                resources, promote soil and water quality,''.
            (2) Policies and purposes.--Section 7(a)(1) of the Soil 
        Conservation and Domestic Allotment Act (16 U.S.C. 590g(a)(1)) 
        is amended by striking ``fertility'' and inserting ``and water 
        quality and related resources''.
    (b) Definitions.--Section 10 of the Soil Conservation and Domestic 
Allotment Act (16 U.S.C. 590j) is amended to read as follows:

``SEC. 10. DEFINITIONS.

    ``In this Act:
            ``(1) Agricultural commodity.--The term `agricultural 
        commodity' means--
                    ``(A) an agricultural commodity; and
                    ``(B) any regional or market classification, type, 
                or grade of an agricultural commodity.
            ``(2) Technical assistance.--
                    ``(A) In general.--The term `technical assistance' 
                means technical expertise, information, and tools 
                necessary for the conservation of natural resources on 
                land active in agricultural, forestry, or related uses.
                    ``(B) Inclusions.--The term `technical assistance' 
                includes--
                            ``(i) technical services provided directly 
                        to farmers, ranchers, and other eligible 
                        entities, such as conservation planning, 
                        technical consultation, and assistance with 
                        design and implementation of conservation 
                        practices; and
                            ``(ii) technical infrastructure, including 
                        activities, processes, tools, and agency 
                        functions needed to support delivery of 
                        technical services, such as technical 
                        standards, resource inventories, training, 
                        data, technology, monitoring, and effects 
                        analyses.''.

SEC. 2803. SMALL WATERSHED REHABILITATION PROGRAM.

    (a) Availability of Funds.--Section 14(h)(1) of the Watershed 
Protection and Flood Prevention Act (16 U.S.C. 1012(h)(1)) is amended 
by adding at the end the following new subparagraph:
                    ``(G) $100,000,000 for fiscal year 2009, to be 
                available until expended.''.
    (b) Authorization of Appropriations.--Section 14(h)(2)(E) of the 
Watershed Protection and Flood Prevention Act (16 U.S.C. 1012(h)(2)(E)) 
is amended by striking ``fiscal year 2007'' and inserting ``each of 
fiscal years 2008 through 2012''.

SEC. 2804. AMENDMENTS TO SOIL AND WATER RESOURCES CONSERVATION ACT OF 
              1977.

    (a) Congressional Findings.--Section 2 of the Soil and Water 
Resources Conservation Act of 1977 (16 U.S.C. 2001) is amended--
            (1) in paragraph (2), by striking ``base, of the'' and 
        inserting ``base of the''; and
            (2) in paragraph (3), by striking ``(3)'' and all that 
        follows through ``Since individual'' and inserting the 
        following:
            ``(3) Appraisal and inventory of resources, assessment and 
        inventory of conservation needs, evaluation of the effects of 
        conservation practices, and analyses of alternative approaches 
        to existing conservation programs are basic to effective soil, 
        water, and related natural resource conservation.
            ``(4) Since individual''.
    (b) Continuing Appraisal of Soil, Water, and Related Resources.--
Section 5 of the Soil and Water Resources Conservation Act of 1977 (16 
U.S.C. 2004) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (5), by striking ``and'' at the 
                end;
                    (B) in paragraph (6), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(7) data on conservation plans, conservation practices 
        planned or implemented, environmental outcomes, economic costs, 
        and related matters under conservation programs administered by 
        the Secretary.'';
            (2) by redesignating subsection (d) as subsection (e);
            (3) by inserting after subsection (c) the following new 
        subsection:
    ``(d) Evaluation of Appraisal.--In conducting the appraisal 
described in subsection (a), the Secretary shall concurrently solicit 
and evaluate recommendations for improving the appraisal, including the 
content, scope, process, participation in, and other elements of the 
appraisal, as determined by the Secretary.''; and
            (4) in subsection (e), as redesignated by paragraph (2), by 
        striking the first sentence and inserting the following: ``The 
        Secretary shall conduct comprehensive appraisals under this 
        section, to be completed by December 31, 2010, and December 31, 
        2015.''.
    (c) Soil and Water Conservation Program.--Section 6 of the Soil and 
Water Resources Conservation Act of 1977 (16 U.S.C. 2005) is amended--
            (1) by redesignating subsection (b) as subsection (d);
            (2) by inserting after subsection (a) the following new 
        subsections:
    ``(b) Evaluation of Existing Conservation Programs.--In evaluating 
existing conservation programs, the Secretary shall emphasize 
demonstration, innovation, and monitoring of specific program 
components in order to encourage further development and adoption of 
practices and performance-based standards.
    ``(c) Improvement to Program.--In developing a national soil and 
water conservation program under subsection (a), the Secretary shall 
solicit and evaluate recommendations for improving the program, 
including the content, scope, process, participation in, and other 
elements of the program, as determined by the Secretary.''; and
            (3) in subsection (d), as redesignated by paragraph (1), by 
        striking ``December 31, 1979'' and all that follows through 
        ``December 31, 2007'' and inserting ``December 31, 2011, and 
        December 31, 2016''.
    (d) Reports to Congress.--Section 7 of the Soil and Water Resources 
Conservation Act of 1977 (16 U.S.C. 2006) is amended to read as 
follows:

``SEC. 7. REPORTS TO CONGRESS.

    ``(a) Appraisal.--Not later than the date on which Congress 
convenes in 2011 and 2016, the President shall transmit to the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate the 
appraisal developed under section 5 and completed before the end of the 
previous year.
    ``(b) Program and Statement of Policy.--Not later than the date on 
which Congress convenes in 2012 and 2017, the President shall transmit 
to the Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate--
            ``(1) the initial program or updated program developed 
        under section 6 and completed before the end of the previous 
        year;
            ``(2) a detailed statement of policy regarding soil and 
        water conservation activities of the Department of Agriculture; 
        and
            ``(3) a special evaluation of the status, conditions, and 
        trends of soil quality on cropland in the United States that 
        addresses the challenges and opportunities for reducing soil 
        erosion to tolerance levels.
    ``(c) Improvements to Appraisal and Program.--Not later than the 
date on which Congress convenes in 2012, the Secretary shall submit to 
the Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate a 
report describing the plans of the Department of Agriculture for 
improving the resource appraisal and national conservation program 
required under this Act, based on the recommendations received under 
sections 5(d) and 6(c).''.
    (e) Termination of Program.--Section 10 of the Soil and Water 
Resources Conservation Act of 1977 (16 U.S.C. 2009) is amended by 
striking ``2008'' and inserting ``2018''.

SEC. 2805. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

    (a) Locally Led Planning Process.--Section 1528 of the Agriculture 
and Food Act of 1981 (16 U.S.C. 3451) is amended--
            (1) in paragraph (1), in the matter preceding subparagraph 
        (A), by striking ``planning process'' and inserting ``locally 
        led planning process'';
            (2) by redesignating paragraphs (8) and (9) as paragraphs 
        (9) and (8), respectively, and moving those paragraphs so as to 
        appear in numerical order;
            (3) in paragraph (8) (as so redesignated)--
                    (A) by striking ``planning process'' and inserting 
                ``Locally led planning process''; and
                    (B) by striking ``council'' and inserting ``locally 
                led council''.
    (b) Authorized Technical Assistance.--Section 1528(13) of the 
Agriculture and Food Act of 1981 (16 U.S.C. 3451(13)) is amended by 
striking subparagraphs (C) and (D) and inserting the following new 
subparagraphs:
                    ``(C) providing assistance for the implementation 
                of area plans and projects; and
                    ``(D) providing services that involve the resources 
                of Department of Agriculture programs in a local 
                community, as defined in the locally led planning 
                process.''.
    (c) Improved Provision of Technical Assistance.--Section 1531 of 
the Agriculture and Food Act of 1981 (16 U.S.C. 3454) is amended--
            (1) by inserting ``(a) In General.--'' before ``In 
        carrying''; and
            (2) by adding at the end the following new subsection:
    ``(b) Coordinator.--
            ``(1) In general.--To improve the provision of technical 
        assistance to councils under this subtitle, the Secretary shall 
        designate for each council an individual to be the coordinator 
        for the council.
            ``(2) Responsibility.--A coordinator for a council shall be 
        directly responsible for the provision of technical assistance 
        to the council.''.
    (d) Program Evaluation.--Section 1534 of the Agriculture and Food 
Act of 1981 (16 U.S.C. 3457) is repealed.

SEC. 2806. USE OF FUNDS IN BASIN FUNDS FOR SALINITY CONTROL ACTIVITIES 
              UPSTREAM OF IMPERIAL DAM.

    (a) In General.--Section 202(a) of the Colorado River Basin 
Salinity Control Act (43 U.S.C. 1592(a)) is amended by adding at the 
end the following new paragraph:
            ``(7) Basin states program.--
                    ``(A) In general.--A Basin States Program that the 
                Secretary, acting through the Bureau of Reclamation, 
                shall implement to carry out salinity control 
                activities in the Colorado River Basin using funds made 
                available under section 205(f).
                    ``(B) Assistance.--The Secretary, in consultation 
                with the Colorado River Basin Salinity Control Advisory 
                Council, shall carry out this paragraph using funds 
                described in subparagraph (A) directly or by providing 
                grants, grant commitments, or advance funds to Federal 
                or non-Federal entities under such terms and conditions 
                as the Secretary may require.
                    ``(C) Activities.--Funds described in subparagraph 
                (A) shall be used to carry out, as determined by the 
                Secretary--
                            ``(i) cost-effective measures and 
                        associated works to reduce salinity from saline 
                        springs, leaking wells, irrigation sources, 
                        industrial sources, erosion of public and 
                        private land, or other sources;
                            ``(ii) operation and maintenance of 
                        salinity control features constructed under the 
                        Colorado River Basin salinity control program; 
                        and
                            ``(iii) studies, planning, and 
                        administration of salinity control activities.
                    ``(D) Report.--
                            ``(i) In general.--Not later than 30 days 
                        before implementing the program established 
                        under this paragraph, the Secretary shall 
                        submit to the appropriate committees of 
                        Congress a planning report that describes the 
                        proposed implementation of the program.
                            ``(ii) Implementation.--The Secretary may 
                        not expend funds to implement the program 
                        established under this paragraph before the 
                        expiration of the 30-day period beginning on 
                        the date on which the Secretary submits the 
                        report, or any revision to the report, under 
                        clause (i).''.
    (b) Conforming Amendments.--
            (1) Section 202 of the Colorado River Basin Salinity 
        Control Act (43 U.S.C. 1592) is amended--
                    (A) in subsection (a), in the matter preceding 
                paragraph (1), by striking ``program'' and inserting 
                ``programs''; and
                    (B) in subsection (b)(4)--
                            (i) by striking ``program'' and inserting 
                        ``programs''; and
                            (ii) by striking ``and (6)'' and inserting 
                        ``(6), and (7)''.
            (2) Section 205 of the Colorado River Basin Salinity 
        Control Act (43 U.S.C. 1595) is amended by striking subsection 
        (f) and inserting the following new subsection:
    ``(f) Up-Front Cost Share.--
            ``(1) In general.--Effective beginning on the date of 
        enactment of this paragraph, subject to paragraph (3), the cost 
        share obligations required by this section shall be met through 
        an up-front cost share from the Basin Funds, in the same 
        proportions as the cost allocations required under subsection 
        (a), as provided in paragraph (2).
            ``(2) Basin states program.--The Secretary shall expend the 
        required cost share funds described in paragraph (1) through 
        the Basin States Program for salinity control activities 
        established under section 202(a)(7).
            ``(3) Existing salinity control activities.--The cost share 
        contribution required by this section shall continue to be met 
        through repayment in a manner consistent with this section for 
        all salinity control activities for which repayment was 
        commenced prior to the date of enactment of this paragraph.''.

SEC. 2807. DESERT TERMINAL LAKES.

    Section 2507 of the Farm Security and Rural Investment Act of 2002 
(43 U.S.C. 2211 note; Public Law 107-171) is amended--
            (1) in subsection (a)--
                    (A) by striking ``(a)'' and all that follows 
                through ``$200,000,000'' and inserting ``(a) 
                Transfer.--Subject to subsection (b) and paragraph (1) 
                of section 207(a) of Public Law 108-7 (117 Stat. 146), 
                notwithstanding paragraph (3) of that section, on the 
                date of enactment of the Food, Conservation, and Energy 
                Act of 2008, the Secretary of Agriculture shall 
                transfer $175,000,000''; and
                    (B) by striking the quotation marks at the 
                beginning of paragraphs (1) and (2); and
            (2) by striking subsection (b) and inserting the following 
        new subsection:
    ``(b) Permitted Uses.--In any case in which there are willing 
sellers, the funds described in subsection (a) may be used--
            ``(1) to lease water; or
            ``(2) to purchase land, water appurtenant to the land, and 
        related interests in the Walker River Basin in accordance with 
        section 208(a)(1)(A) of the Energy and Water Development 
        Appropriations Act, 2006 (Public Law 109-103; 119 Stat. 
        2268).''.

           Subtitle J--Miscellaneous Conservation Provisions

SEC. 2901. HIGH PLAINS WATER STUDY.

    Notwithstanding any other provision of this Act, no person shall 
become ineligible for any program benefits under this Act or an 
amendment made by this Act solely as a result of participating in a 1-
time study of recharge potential for the Ogallala Aquifer in the High 
Plains of the State of Texas.

SEC. 2902. NAMING OF NATIONAL PLANT MATERIALS CENTER AT BELTSVILLE, 
              MARYLAND, IN HONOR OF NORMAN A. BERG.

    The National Plant Materials Center at Beltsville, Maryland, 
referenced in section 613.5(a) of title 7, Code of Federal Regulations, 
shall be known and designated as the ``Norman A. Berg National Plant 
Materials Center''. Any reference in a law, map, regulation, document, 
paper, or other record of the United States to such National Plant 
Materials Center shall be deemed to be a reference to the Norman A. 
Berg National Plant Materials Center.

SEC. 2903. TRANSITION.

    (a) Continuation of Programs in Fiscal Year 2008.--Except as 
otherwise provided by an amendment made by this title, the Secretary of 
Agriculture shall continue to carry out any program or activity covered 
by title XII of the Food Security Act (16 U.S.C. 3801 et seq.) until 
September 30, 2008, using the provisions of law applicable to the 
program or activity as they existed on the day before the date of the 
enactment of this Act and using funds made available under such title 
for fiscal year 2008 for the program or activity.
    (b) Ground and Surface Water Conservation Program.--During the 
period beginning on the date of the enactment of this Act and ending on 
September 30, 2008, the Secretary of Agriculture shall continue to 
carry out the ground and surface water conservation program under 
section 1240I of the Food Security Act of 1985 (16 U.S.C. 3839aa-9), as 
in effect before the amendment made by section 2510, using the terms, 
conditions, and funds available to the Secretary to carry out such 
program on the day before the date of the enactment of this Act.

SEC. 2904. REGULATIONS.

    (a) Issuance.--Except as otherwise provided in this title or an 
amendment made by this title, not later than 90 days after the date of 
enactment of this Act, the Secretary of Agriculture, in consultation 
with the Commodity Credit Corporation, shall promulgate such 
regulations as are necessary to implement this title.
    (b) Applicable Authority.--The promulgation of regulations under 
subsection (a) and administration of this title--
            (1) shall be carried out without regard to--
                    (A) chapter 35 of title 44, United States Code 
                (commonly known as the Paperwork Reduction Act); and
                    (B) the Statement of Policy of the Secretary of 
                Agriculture effective July 24, 1971 (36 Fed. Reg. 
                13804) relating to notices of proposed rulemaking and 
                public participation in rulemaking; and
            (2) may--
                    (A) be promulgated with an opportunity for notice 
                and comment; or
                    (B) if determined to be appropriate by the 
                Secretary of Agriculture or the Commodity Credit 
                Corporation, as an interim rule effective on 
                publication with an opportunity for notice and comment.
    (c) Congressional Review of Agency Rulemaking.--In carrying out 
this section, the Secretary shall use the authority provided under 
section 808(2) of title 5, United States Code.

                            TITLE III--TRADE

                     Subtitle A--Food for Peace Act

SEC. 3001. SHORT TITLE.

    (a) In General.--Section 1 of the Agricultural Trade Development 
and Assistance Act of 1954 (7 U.S.C. 1691 note; 104 Stat. 3633) is 
amended by striking ``Agricultural Trade Development and Assistance Act 
of 1954'' and inserting ``Food for Peace Act''.
    (b) Conforming Amendments.--
            (1) In general.--Each provision of law described in 
        paragraph (2) is amended--
                    (A) by striking ``Agricultural Trade Development 
                and Assistance Act of 1954'' each place it appears and 
                inserting ``Food for Peace Act''; and
                    (B) in each section heading, by striking 
                ``agricultural trade development and assistance act of 
                1954'' each place it appears and inserting ``food for 
                peace act''.
            (2) Provisions of law.--The provisions of law referred to 
        in paragraph (1) are the following:
                    (A) The Agriculture and Food Act of 1981 (Public 
                Law 97-98; 95 Stat. 1213).
                    (B) The Agricultural Act of 1949 (7 U.S.C. 1421 et 
                seq.).
                    (C) Section 9(a) of the Military Construction 
                Codification Act (7 U.S.C. 1704c).
                    (D) Section 201 of the Africa: Seeds of Hope Act of 
                1998 (7 U.S.C. 1721 note; Public Law 105-385).
                    (E) The Bill Emerson Humanitarian Trust Act (7 
                U.S.C. 1736f-1 et seq.).
                    (F) The Food for Progress Act of 1985 (7 U.S.C. 
                1736o).
                    (G) Section 3107 of the Farm Security and Rural 
                Investment Act of 2002 (7 U.S.C. 1736o-1).
                    (H) Sections 605B and 606C of the Act of August 28, 
                1954 (commonly known as the ``Agricultural Act of 
                1954'') (7 U.S.C. 1765b, 1766b).
                    (I) Section 206 of the Agricultural Act of 1956 (7 
                U.S.C. 1856).
                    (J) The Agricultural Competitiveness and Trade Act 
                of 1988 (7 U.S.C. 5201 et seq.).
                    (K) The Agricultural Trade Act of 1978 (7 U.S.C. 
                5601 et seq.).
                    (L) The Export-Import Bank Act of 1945 (12 U.S.C. 
                635 et seq.).
                    (M) Section 301 of title 13, United States Code.
                    (N) Section 8 of the Endangered Species Act of 1973 
                (16 U.S.C. 1537).
                    (O) Section 604 of the Enterprise for the Americas 
                Act of 1992 (22 U.S.C. 2077).
                    (P) Section 5 of the International Health Research 
                Act of 1960 (22 U.S.C. 2103).
                    (Q) The Foreign Assistance Act of 1961 (22 U.S.C. 
                2151 et seq.).
                    (R) The Horn of Africa Recovery and Food Security 
                Act (22 U.S.C. 2151 note; Public Law 102-274).
                    (S) Section 105 of the Mutual Educational and 
                Cultural Exchange Act of 1961 (22 U.S.C. 2455).
                    (T) Section 35 of the Foreign Military Sales Act 
                (22 U.S.C. 2775).
                    (U) The Support for East European Democracy (SEED) 
                Act of 1989 (22 U.S.C. 5401 et seq.).
                    (V) Section 1707 of the Cuban Democracy Act of 1992 
                (22 U.S.C. 6006).
                    (W) The Cuban Liberty and Democratic Solidarity 
                (LIBERTAD) Act of 1996 (22 U.S.C. 6021 et seq.).
                    (X) Section 902 of the Trade Sanctions Reform and 
                Export Enhancement Act of 2000 (22 U.S.C. 7201).
                    (Y) Chapter 553 of title 46, United State Code.
                    (Z) Section 4 of the Strategic and Critical 
                Materials Stock Piling Act (50 U.S.C. 98c).
                    (AA) The Food, Agriculture, Conservation, and Trade 
                Act of 1990 (Public Law 101-624; 104 Stat. 3359).
                    (BB) Section 738 of the Agriculture, Rural 
                Development, Food and Drug Administration, and Related 
                Agencies Appropriations Act, 2001 (Public Law 106-387; 
                114 Stat 1549A-34).
    (c) References.--Any reference in any Federal, State, tribal, or 
local law (including regulations) to the ``Agricultural Trade 
Development and Assistance Act of 1954'' shall be considered to be a 
reference to the ``Food for Peace Act''.

SEC. 3002. UNITED STATES POLICY.

    Section 2 of the Food for Peace Act (7 U.S.C. 1691) is amended--
            (1) by striking paragraph (4); and
            (2) by redesignating paragraphs (5) and (6) as paragraphs 
        (4) and (5), respectively.

SEC. 3003. FOOD AID TO DEVELOPING COUNTRIES.

    Section 3(b) of the Food for Peace Act (7 U.S.C. 1691a(b)) is 
amended by striking ``(b)'' and all that follows through paragraph (1) 
and inserting the following:
    ``(b) Sense of Congress.--It is the sense of Congress that--
            ``(1) in negotiations at the Food Aid Convention, the World 
        Trade Organization, the United Nations Food and Agriculture 
        Organization, and other appropriate venues, the President 
        shall--
                    ``(A) seek commitments of higher levels of food aid 
                by donors in order to meet the legitimate needs of 
                developing countries;
                    ``(B) ensure, to the maximum extent practicable, 
                that humanitarian nongovernmental organizations, 
                recipient country governments, charitable bodies, and 
                international organizations shall continue--
                            ``(i) to be eligible to receive resources 
                        based on assessments of need conducted by those 
                        organizations and entities; and
                            ``(ii) to implement food aid programs in 
                        agreements with donor countries; and
                    ``(C) ensure, to the maximum extent practicable, 
                that options for providing food aid for emergency and 
                nonemergency needs shall not be subject to limitation, 
                including in-kind commodities, provision of funds for 
                agricultural commodity procurement, and monetization of 
                commodities, on the condition that the provision of 
                those commodities or funds--
                            ``(i) is based on assessments of need and 
                        intended to benefit the food security of, or 
                        otherwise assist, recipients, and
                            ``(ii) is provided in a manner that avoids 
                        disincentives to local agricultural production 
                        and marketing and with minimal potential for 
                        disruption of commercial markets; and''.

SEC. 3004. TRADE AND DEVELOPMENT ASSISTANCE.

    (a) Title I of the Food for Peace Act (7 U.S.C. 1701 et seq.) is 
amended in the title heading, by striking ``TRADE AND DEVELOPMENT 
ASSISTANCE'' and inserting ``ECONOMIC ASSISTANCE AND FOOD SECURITY''.
    (b) Section 101 of the Food for Peace Act (7 U.S.C. 1701) is 
amended in the section heading, by striking ``trade and development 
assistance'' and inserting ``economic assistance and food security''.

SEC. 3005. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE 
              ENTITIES.

    Section 102 of the Food for Peace Act (7 U.S.C. 1702) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (1); and
                    (B) by redesignating paragraphs (2) and (3) as 
                paragraphs (1) and (2), respectively; and
            (2) by striking subsection (c).

SEC. 3006. USE OF LOCAL CURRENCY PAYMENTS.

    Section 104(c) of the Food for Peace Act (7 U.S.C. 1704(c)) is 
amended--
            (1) in the matter preceding paragraph (1), by inserting ``, 
        through agreements with recipient governments, private 
        voluntary organizations, and cooperatives,'' after ``developing 
        country'';
            (2) by striking paragraph (1);
            (3) in paragraph (2)--
                    (A) in subparagraph (C), by striking ``and'' at the 
                end;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(E) the improvement of the trade capacity of the 
                recipient country.'';
            (4) in paragraph (3), by striking ``agricultural business 
        development and agricultural trade expansion'' and inserting 
        ``development of agricultural businesses and agricultural trade 
        capacity'';
            (5) in paragraph (4), by striking ``, or otherwise'' and 
        all that follows through ``United States'';
            (6) in paragraph (5), by inserting ``to promote 
        agricultural products produced in appropriate developing 
        countries'' after ``trade fairs''; and
            (7) by redesignating paragraphs (2) through (9) as 
        paragraphs (1) through (8), respectively.

SEC. 3007. GENERAL AUTHORITY.

    Section 201 of the Food for Peace Act (7 U.S.C. 1721) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) address famine and food crises, and respond to 
        emergency food needs, arising from man-made and natural 
        disasters;'';
            (2) in paragraph (5)--
                    (A) by inserting ``food security and support'' 
                after ``promote''; and
                    (B) by striking ``; and'' and inserting a 
                semicolon;
            (3) in paragraph (6), by striking the period at the end and 
        inserting ``; and''; and
            (4) by adding at the end the following:
            ``(7) promote economic and nutritional security by 
        increasing educational, training, and other productive 
        activities.''.

SEC. 3008. PROVISION OF AGRICULTURAL COMMODITIES.

    Section 202 of the Food for Peace Act (7 U.S.C. 1722) is amended--
            (1) in subsection (b)(2), by striking ``may not deny a 
        request for funds'' and inserting ``may not use as a sole 
        rationale for denying a request for funds'';
            (2) in subsection (e)(1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``not less than 5 percent nor more than 10 
                percent'' and inserting ``not less than 7.5 percent nor 
                more than 13 percent'';
                    (B) in subparagraph (A), by striking ``; and'' and 
                inserting a semicolon;
                    (C) in subparagraph (B), by striking the period at 
                the end and inserting ``; and''; and
                    (D) by adding at the end the following:
                    ``(C) improving and implementing methodologies for 
                food aid programs, including needs assessments (upon 
                the request of the Administrator), monitoring, and 
                evaluation.''; and
            (3) by striking subsection (h) and inserting the following:
    ``(h) Food Aid Quality.--
            ``(1) In general.--The Administrator shall use funds made 
        available for fiscal year 2009 and subsequent fiscal years to 
        carry out this title--
                    ``(A) to assess the types and quality of 
                agricultural commodities and products donated for food 
                aid;
                    ``(B) to adjust products and formulations 
                (including the potential introduction of new 
                fortificants and products) as necessary to cost-
                effectively meet nutrient needs of target populations; 
                and
                    ``(C) to test prototypes.
            ``(2) Administration.--The Administrator--
                    ``(A) shall carry out this subsection in 
                consultation with and through independent entities with 
                proven expertise in food aid commodity quality 
                enhancements;
                    ``(B) may enter into contracts to obtain the 
                services of such entities; and
                    ``(C) shall consult with the Food Aid Consultative 
                Group on how to carry out this subsection.
            ``(3) Funding limitation.--Of the funds made available 
        under section 207(f), for fiscal years 2009 through 2011, not 
        more than $4,500,000 may be used to carry out this 
        subsection.''.

SEC. 3009. GENERATION AND USE OF CURRENCIES BY PRIVATE VOLUNTARY 
              ORGANIZATIONS AND COOPERATIVES.

    Section 203(b) of the Food for Peace Act (7 U.S.C. 1723(b)) is 
amended by striking ``1 or more recipient countries'' and inserting 
``in 1 or more recipient countries''.

SEC. 3010. LEVELS OF ASSISTANCE.

    Section 204(a) of the Food for Peace Act (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''.

SEC. 3011. FOOD AID CONSULTATIVE GROUP.

    Section 205 of the Food for Peace Act (7 U.S.C. 1725) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (5), by striking ``and'' at the 
                end;
                    (B) in paragraph (6), by striking the period and 
                inserting ``; and''; and
                    (C) by inserting at the end the following:
            ``(7) representatives from the maritime transportation 
        sector involved in transporting agricultural commodities 
        overseas for programs under this Act.''; and
            (2) in subsection (f), by striking ``2007'' and inserting 
        ``2012''.

SEC. 3012. ADMINISTRATION.

    Section 207 of the Food for Peace Act (7 U.S.C. 1726a) is amended--
            (1) in subsection (a)(3), by striking ``and the conditions 
        that must be met for the approval of such proposal'';
            (2) in subsection (c), by striking paragraph (3);
            (3) by striking subsection (d) and inserting the following:
    ``(d) Timely Provision of Commodities.--The Administrator, in 
consultation with the Secretary, shall develop procedures that ensure 
expedited processing of commodity call forwards in order to provide 
commodities overseas in a timely manner and to the extent feasible, 
according to planned delivery schedules.''; and
            (4) by adding at the end the following:
    ``(f) Program Oversight, Monitoring, and Evaluation.--
            ``(1) Duties of administrator.--The Administrator, in 
        consultation with the Secretary, shall establish systems and 
        carry out activities--
                    ``(A) to determine the need for assistance provided 
                under this title; and
                    ``(B) to improve, monitor, and evaluate the 
                effectiveness and efficiency of the assistance provided 
                under this title to maximize the impact of the 
                assistance.
            ``(2) Requirements of systems and activities.--The systems 
        and activities described in paragraph (1) shall include--
                    ``(A) program monitors in countries that receive 
                assistance under this title;
                    ``(B) country and regional food aid impact 
                evaluations;
                    ``(C) the identification and implementation of best 
                practices for food aid programs;
                    ``(D) the evaluation of monetization programs;
                    ``(E) early warning assessments and systems to help 
                prevent famines; and
                    ``(F) upgraded information technology systems.
            ``(3) Implementation report.--Not later than 180 days after 
        the date of enactment of the Food, Conservation, and Energy Act 
        of 2008, the Administrator shall submit to the appropriate 
        committees of Congress a report on efforts undertaken by the 
        Administrator to conduct oversight of nonemergency programs 
        under this title.
            ``(4) Government accountability office report.--Not later 
        than 270 days after the date of submission of the report under 
        paragraph (3), the Comptroller General of the United States 
        shall submit to the appropriate committees of Congress a report 
        that contains--
                    ``(A) a review of, and comments addressing, the 
                report described in paragraph (3); and
                    ``(B) recommendations relating to any additional 
                actions that the Comptroller General of the United 
                States determines to be necessary to improve the 
                monitoring and evaluation of assistance provided under 
                this title.
            ``(5) Contract authority.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), in carrying out administrative and management 
                activities relating to each activity carried out by the 
                Administrator under paragraph (1), the Administrator 
                may enter into contracts with 1 or more individuals for 
                personal service to be performed in recipient countries 
                or neighboring countries.
                    ``(B) Prohibition.--An individual who enters into a 
                contract with the Administrator under subparagraph (A) 
                shall not be considered to be an employee of the 
                Federal Government for the purpose of any law 
                (including regulations) administered by the Office of 
                Personnel Management.
                    ``(C) Personal service.--Subparagraph (A) does not 
                limit the ability of the Administrator to enter into a 
                contract with any individual for personal service under 
                section 202(a).
            ``(6) Funding.--
                    ``(A) In general.--Subject to section 202(h)(3), in 
                addition to other funds made available to the 
                Administrator to carry out the monitoring of emergency 
                food assistance, the Administrator may implement this 
                subsection using up to $22,000,000 of the funds made 
                available under this title for each of fiscal years 
                2009 through 2012, except for paragraph (2)(F), for 
                which only $2,500,000 shall be made available during 
                fiscal year 2009.
                    ``(B) Limitations.--
                            ``(i) In general.--Subject to clause (ii), 
                        of the funds made available under subparagraph 
                        (A), for each of fiscal years 2009 through 
                        2012, not more than $8,000,000 may be used by 
                        the Administrator to carry out paragraph 
                        (2)(E).
                            ``(ii) Condition.--No funds shall be made 
                        available under subparagraph (A), in accordance 
                        with clause (i), unless not less than 
                        $8,000,000 is made available under chapter 1 of 
                        part I of the Foreign Assistance Act of 1961 
                        (22 U.S.C. 2151 et seq.) for such purposes for 
                        such fiscal year.
    ``(g) Project Reporting.--
            ``(1) In general.--In submitting project reports to the 
        Administrator, a private voluntary organization or cooperative 
        shall provide a copy of the report in such form as is necessary 
        for the report to be displayed for public use on the website of 
        the United States Agency for International Development.
            ``(2) Confidential information.--An organization or 
        cooperative described in paragraph (1) may omit any 
        confidential information from the copy of the report submitted 
        for public display under that paragraph.''.

SEC. 3013. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION, 
              DELIVERY, AND DISTRIBUTION OF SHELF-STABLE PREPACKAGED 
              FOODS.

    Section 208(f) of the Food for Peace Act (7 U.S.C. 1726b(f)) is 
amended--
            (1) by striking ``$3,000,000'' and inserting 
        ``$8,000,000''; and
            (2) by striking ``2007'' and inserting ``2012''.

SEC. 3014. GENERAL AUTHORITIES AND REQUIREMENTS.

    (a) In General.--Section 401 of the Food for Peace Act (7 U.S.C. 
1731) is amended--
            (1) by striking subsection (a);
            (2) by redesignating subsections (b) and (c) as subsections 
        (a) and (b), respectively; and
            (3) in subsection (b) (as so redesignated), by striking 
        ``(b)(1)'' and inserting ``(a)(1)''.
    (b) Conforming Amendments.--
            (1) Section 406(a) of the Food for Peace Act (7 U.S.C. 
        1736(a)) is amended by striking ``(that have been determined to 
        be available under section 401(a))''.
            (2) Subsection (e)(1) of the Food for Progress Act of 1985 
        (7 U.S.C. 1736o(e)(1)) is amended by striking ``determined to 
        be available under section 401 of the Food for Peace Act''.

SEC. 3015. DEFINITIONS.

    Section 402 of the Food for Peace Act (7 U.S.C. 1732) is amended--
            (1) by redesignating paragraphs (3) through (8) as 
        paragraphs (4) through (9), respectively; and
            (2) by inserting after paragraph (2) the following:
            ``(3) Appropriate committee of congress.--The term 
        `appropriate committee of Congress' means--
                    ``(A) the Committee on Agriculture, Nutrition, and 
                Forestry of the Senate;
                    ``(B) the Committee on Agriculture of the House of 
                Representatives; and
                    ``(C) the Committee on Foreign Affairs of the House 
                of Representatives.''.

SEC. 3016. USE OF COMMODITY CREDIT CORPORATION.

    Section 406(b)(2) of the Food for Peace Act (7 U.S.C. 1736(b)(2)) 
is amended by inserting ``, including the costs of carrying out section 
415'' before the semicolon.

SEC. 3017. ADMINISTRATIVE PROVISIONS.

    Section 407(c) of the Food for Peace Act (7 U.S.C. 1736a(c)) is 
amended--
            (1) in paragraph (4)--
                    (A) by striking ``Funds made'' and inserting the 
                following:
                    ``(A) In general.--Funds made'';
                    (B) in subparagraph (A) (as so designated)--
                            (i) by striking ``2007'' and inserting 
                        ``2012''; and
                            (ii) by striking ``$2,000,000'' and 
                        inserting ``$10,000,000''; and
                    (C) by adding at the end the following:
                    ``(B) Additional prepositioning sites.--
                            ``(i) Feasibility assessments.--The 
                        Administrator may carry out assessments for the 
                        establishment of not less than 2 sites to 
                        determine the feasibility of, and costs 
                        associated with, using the sites to store and 
                        handle agricultural commodities for 
                        prepositioning in foreign countries.
                            ``(ii) Establishment of sites.--Based on 
                        the results of each assessment carried out 
                        under clause (i), the Administrator may 
                        establish additional sites for prepositioning 
                        in foreign countries.''; and
            (2) by adding at the end the following:
            ``(5) Nonemergency or multiyear agreements.--Annual 
        resource requests for ongoing nonemergency or ongoing multiyear 
        agreements under title II shall be finalized not later than 
        October 1 of the fiscal year in which the agricultural 
        commodities will be shipped under the agreement.''.

SEC. 3018. CONSOLIDATION AND MODIFICATION OF ANNUAL REPORTS REGARDING 
              AGRICULTURAL TRADE ISSUES.

    (a) Annual Reports.--Section 407 of the Food for Peace Act (7 
U.S.C. 1736a) is amended by striking subsection (f) and inserting the 
following:
    ``(f) Annual Reports.--
            ``(1) Annual report regarding agricultural trade programs 
        and activities.--
                    ``(A) Annual report.--Not later than April 1 of 
                each fiscal year, the Administrator and the Secretary 
                shall jointly prepare and submit to the appropriate 
                committees of Congress a report regarding each program 
                and activity carried out under this Act during the 
                prior fiscal year.
                    ``(B) Contents.--An annual report described in 
                subparagraph (A) shall include, with respect to the 
                prior fiscal year--
                            ``(i) a list that contains a description of 
                        each country and organization that receives 
                        food and other assistance under this Act 
                        (including the quantity of food and assistance 
                        provided to each country and organization);
                            ``(ii) a general description of each 
                        project and activity implemented under this Act 
                        (including each activity funded through the use 
                        of local currencies);
                            ``(iii) a statement describing the quantity 
                        of agricultural commodities made available to 
                        each country pursuant to--
                                    ``(I) section 416(b) of the 
                                Agricultural Act of 1949 (7 U.S.C. 
                                1431(b)); and
                                    ``(II) the Food for Progress Act of 
                                1985 (7 U.S.C. 1736o);
                            ``(iv) an assessment of the progress made 
                        through programs under this Act towards 
                        reducing food insecurity in the populations 
                        receiving food assistance from the United 
                        States;
                            ``(v) a description of efforts undertaken 
                        by the Food Aid Consultative Group under 
                        section 205 to achieve an integrated and 
                        effective food assistance program;
                            ``(vi) an assessment of--
                                    ``(I) each program oversight, 
                                monitoring, and evaluation system 
                                implemented under section 207(f); and
                                    ``(II) the impact of each program 
                                oversight, monitoring, and evaluation 
                                system on the effectiveness and 
                                efficiency of assistance provided under 
                                this title; and
                            ``(vii) an assessment of the progress made 
                        by the Administrator in addressing issues 
                        relating to quality with respect to the 
                        provision of food assistance.
            ``(2) Annual report regarding the provision of agricultural 
        commodities to foreign countries.--
                    ``(A) Annual report.--Not later than February 1 of 
                each fiscal year, the Administrator shall prepare and 
                submit to the appropriate committees of Congress a 
                report regarding the administration of food assistance 
                programs under title II to benefit foreign countries 
                during the prior fiscal year.
                    ``(B) Contents.--An annual report described in 
                subparagraph (A) shall include, with respect to the 
                prior fiscal year--
                            ``(i) a list that contains a description of 
                        each program, country, and commodity approved 
                        for assistance under section 207; and
                            ``(ii) a statement that contains a 
                        description of the total amount of funds 
                        approved for transportation and administrative 
                        costs under section 207.''.
    (b) Conforming Amendment.--Section 207(e) of the Food for Peace Act 
(7 U.S.C. 1726a(e)) is amended--
            (1) by striking ``Timely Approval.'' and all that follows 
        through ``The Administrator'' and inserting ``Timely 
        Approval.--The Administrator''; and
            (2) by striking paragraph (2).

SEC. 3019. EXPIRATION OF ASSISTANCE.

    Section 408 of the Food for Peace Act (7 U.S.C. 1736b) is amended 
by striking ``2007'' and inserting ``2012''.

SEC. 3020. AUTHORIZATION OF APPROPRIATIONS.

    Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is amended 
by striking subsection (a) and inserting the following:
    ``(a) Authorization of Appropriations.--There are authorized to be 
appropriated--
            ``(1) for fiscal year 2008 and each fiscal year thereafter, 
        $2,500,000,000 to carry out the emergency and nonemergency food 
        assistance programs under title II; and
            ``(2) such sums as are necessary--
                    ``(A) to carry out the concessional credit sales 
                program established under title I;
                    ``(B) to carry out the grant program established 
                under title III; and
                    ``(C) 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 the Commodity Credit Corporation in 
                carrying out such programs.''.

SEC. 3021. MINIMUM LEVEL OF NONEMERGENCY FOOD ASSISTANCE.

    Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is amended 
by adding at the end the following:
    ``(e) Minimum Level of Nonemergency Food Assistance.--
            ``(1) Funds and commodities.--Of the amounts made available 
        to carry out emergency and nonemergency food assistance 
        programs under title II, not less than $375,000,000 for fiscal 
        year 2009, $400,000,000 for fiscal year 2010, $425,000,000 for 
        fiscal year 2011, and $450,000,000 for fiscal year 2012 shall 
        be expended for nonemergency food assistance programs under 
        title II.
            ``(2) Exception.--The President may use less than the 
        amount specified in paragraph (1) in a fiscal year for 
        nonemergency food assistance programs under title II only if--
                    ``(A) the President has made a determination that 
                there is an urgent need for additional emergency food 
                assistance;
                    ``(B) the funds and commodities held in the Bill 
                Emerson Humanitarian Trust have been exhausted; and
                    ``(C) the President has submitted to Congress a 
                supplemental appropriations request for a sum equal to 
                the amount needed to reach the required spending level 
                for nonemergency food assistance under paragraph (1) 
                and the amount exhausted under paragraph (2)(B).
            ``(3) Notification to congress.--If the President makes the 
        determination described in paragraph (2)(A), the President 
        shall submit to Congress written notification that the 
        determination has been made.''.

SEC. 3022. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS.

    Section 413 of the Food for Peace Act (7 U.S.C. 1736g) is amended--
            (1) by striking ``To the maximum'' and inserting the 
        following:
    ``(a) In General.--To the maximum''; and
            (2) by adding at the end the following:
    ``(b) Report Regarding Efforts to Improve Procurement Planning.--
            ``(1) Report required.--Not later than 90 days after the 
        date of enactment of the Food, Conservation, and Energy Act of 
        2008, the Administrator and the Secretary shall submit to each 
        appropriate committee of Congress a report that contains a 
        description of each effort taken by the Administrator and the 
        Secretary to improve planning for food and transportation 
        procurement (including efforts to eliminate bunching of food 
        purchases).
            ``(2) Contents.--A report required under paragraph (1) 
        should include a description of each effort taken by the 
        Administrator and the Secretary--
                    ``(A) to improve the coordination of food purchases 
                made by--
                            ``(i) the United States Agency for 
                        International Development; and
                            ``(ii) the Department of Agriculture;
                    ``(B) to increase flexibility with respect to 
                procurement schedules;
                    ``(C) to increase the use of historical analyses 
                and forecasting; and
                    ``(D) to improve and streamline legal claims 
                processes for resolving transportation disputes.''.

SEC. 3023. MICRONUTRIENT FORTIFICATION PROGRAMS.

    Section 415 of the Food for Peace Act (7 U.S.C. 1736g-2) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``Not later than 
                September 30, 2003, the Administrator, in consultation 
                with the Secretary'' and inserting ``Not later than 
                September 30, 2008, the Administrator, in consultation 
                with the Secretary''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by adding ``and'' 
                        after the semicolon at the end; and
                            (ii) by striking subparagraphs (B) and (C) 
                        and inserting the following:
                    ``(B) assess and apply technologies and systems to 
                improve and ensure the quality, shelf life, 
                bioavailability, and safety of fortified food aid 
                agricultural commodities, and products of those 
                agricultural commodities, using recommendations 
                included in the report entitled `Micronutrient 
                Compliance Review of Fortified Public Law 480 
                Commodities', published in October 2001, with 
                implementation by independent entities with proven 
                experience and expertise in food aid commodity quality 
                enhancements.'';
            (2) by striking subsection (b) and redesignating 
        subsections (c) and (d) as subsections (b) and (c), 
        respectively; and
            (3) in subsection (c) (as redesignated by paragraph (2)), 
        by striking ``2007'' and inserting ``2012''.

SEC. 3024. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER PROGRAM.

    (a) Minimum Funding.--Section 501(d) of the Food for Peace Act (7 
U.S.C. 1737(d)) is amended in the matter preceding paragraph (1)--
            (1) by striking ``not less than'' and inserting ``not less 
        than the greater of $10,000,000 or''; and
            (2) by striking ``2002 through 2007'' and inserting ``2008 
        through 2012''.
    (b) Authorization of Appropriations.--Section 501(e) of the Food 
for Peace Act (7 U.S.C. 1737(e)) is amended by striking paragraph (1) 
and inserting the following:
            ``(1) In general.--There are authorized to be appropriated 
        for each of fiscal years 2008 through 2012 to carry out the 
        programs under this section--
                    ``(A) $10,000,000 for sub-Saharan African and 
                Caribbean Basin countries; and
                    ``(B) $5,000,000 for other developing or middle-
                income countries or emerging markets not described in 
                subparagraph (A).''.

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

SEC. 3101. EXPORT CREDIT GUARANTEE PROGRAM.

    (a) Repeal of Supplier Credit Guarantee Program and Intermediate 
Export Credit Guarantee Program.--Section 202 of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5622) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Guarantees.--'' and all that 
                follows through ``The Commodity'' in paragraph (1) and 
                inserting ``Guarantees.--The Commodity''; and
                    (B) by striking paragraphs (2) and (3);
            (2) by striking subsections (b) and (c);
            (3) by redesignating subsections (d) through (l) as 
        subsections (b) through (j), respectively; and
            (4) by adding at the end the following:
    ``(k) Administration.--
            ``(1) Definition of long term.--In this subsection, the 
        term `long term' means a period of 10 or more years.
            ``(2) Guarantees.--In administering the export credit 
        guarantees authorized under this section, the Secretary shall--
                    ``(A) maximize the export sales of agricultural 
                commodities;
                    ``(B) maximize the export credit guarantees that 
                are made available and used during the course of a 
                fiscal year;
                    ``(C) develop an approach to risk evaluation that 
                facilitates accurate country risk designations and 
                timely adjustments to the designations (on an ongoing 
                basis) in response to material changes in country risk 
                conditions, with ongoing opportunity for input and 
                evaluation from the private sector;
                    ``(D) adjust risk-based guarantees as necessary to 
                ensure program effectiveness and United States 
                competitiveness; and
                    ``(E) work with industry to ensure, to the maximum 
                extent practicable, that risk-based fees associated 
                with the guarantees cover, but do not exceed, the 
                operating costs and losses over the long term.''.
    (b) Funding Levels.--Section 211 of the Agricultural Trade Act of 
1978 (7 U.S.C. 5641) is amended by striking subsection (b) and 
inserting the following:
    ``(b) Export Credit Guarantee Programs.--The Commodity Credit 
Corporation shall make available for each of fiscal years 1996 through 
2012 credit guarantees under section 202(a) in an amount equal to but 
not more than the lesser of--
            ``(1) $5,500,000,000 in credit guarantees; or
            ``(2) the sum of--
                    ``(A) the amount of credit guarantees that the 
                Commodity Credit Corporation can make available using 
                budget authority of $40,000,000 for each fiscal year 
                for the costs of the credit guarantees; and
                    ``(B) the amount of credit guarantees that the 
                Commodity Credit Corporation can make available using 
                unobligated budget authority for prior fiscal years.''.
    (c) Conforming Amendments.--Section 202 of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5622) is amended--
            (1) in subsection (b)(4) (as redesignated by subsection 
        (a)(3)), by striking ``, consistent with the provisions of 
        subsection (c)'';
            (2) in subsection (d) (as redesignated by subsection 
        (a)(3))--
                    (A) by striking ``(1)'' and all that follows 
                through ``The Commodity'' and inserting ``The 
                Commodity''; and
                    (B) by striking paragraph (2); and
            (3) in subsection (g)(2) (as redesignated by subsection 
        (a)(3)), by striking ``subsections (a) and (b)'' and inserting 
        ``subsection (a)''.

SEC. 3102. MARKET ACCESS PROGRAM.

    (a) Organic Commodities.--Section 203(a) of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5623(a)) is amended by inserting after 
``agricultural commodities'' the following: ``(including commodities 
that are organically produced (as defined in section 2103 of the 
Organic Foods Production Act of 1990 (7 U.S.C. 6502)))''.
    (b) Funding.--Section 211(c)(1)(A) of the Agricultural Trade Act of 
1978 (7 U.S.C. 5641(c)(1)(A)) is amended by striking ``$200,000,000 for 
each of fiscal years 2006 and 2007'' and inserting ``$200,000,000 for 
each of fiscal years 2008 through 2012''.

SEC. 3103. EXPORT ENHANCEMENT PROGRAM.

    (a) In General.--Section 301 of the Agricultural Trade Act of 1978 
(7 U.S.C. 5651) is repealed.
    (b) Conforming Amendments.--The Agricultural Trade Act of 1978 is 
amended--
            (1) in title III, by striking the title heading and 
        inserting the following:

                  ``TITLE III--BARRIERS TO EXPORTS'';

            (2) by redesignating sections 302 and 303 (7 U.S.C. 5652 
        and 5653) as sections 301 and 302, respectively;
            (3) in section 302 (as redesignated by paragraph (2)), by 
        striking ``, such as that established under section 301,'';
            (4) in section 401 (7 U.S.C. 5661)--
                    (A) in subsection (a), by striking ``section 201, 
                202, or 301'' and inserting ``section 201 or 202''; and
                    (B) in subsection (b), by striking ``sections 201, 
                202, and 301'' and inserting ``sections 201 and 202''; 
                and
            (5) in section 402(a)(1) (7 U.S.C. 5662(a)(1)), by striking 
        ``sections 201, 202, 203, and 301'' and inserting ``sections 
        201, 202, and 203''.

SEC. 3104. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    (a) Report to Congress.--Section 702(c) of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5722(c)) is amended by striking ``Committee on 
International Relations'' and inserting ``Committee on Foreign 
Affairs''.
    (b) Funding.--Section 703(a) of the Agricultural Trade Act of 1978 
(7 U.S.C. 5723(a)) is amended by striking ``2002 through 2007'' and 
inserting ``2008 through 2012''.

SEC. 3105. FOOD FOR PROGRESS ACT OF 1985.

    (a) In General.--The Food for Progress Act of 1985 (7 U.S.C. 1736o) 
is amended by striking ``2007'' each place it appears and inserting 
``2012''.
    (b) Designation of Project in Sub-Saharan Africa.--The Food for 
Progress Act of 1985 (7 U.S.C. 1736o) is amended in subsection (f) by 
adding at the end the following:
            ``(6) Project in malawi.--
                    ``(A) In general.--In carrying out this section 
                during fiscal year 2009, the President shall approve 
                not less than 1 multiyear project for Malawi--
                            ``(i) to promote sustainable agriculture; 
                        and
                            ``(ii) to increase the number of women in 
                        leadership positions.
                    ``(B) Use of eligible commodities.--Of the eligible 
                commodities used to carry out this section during the 
                period in which the project described in subparagraph 
                (A) is carried out, the President shall carry out the 
                project using eligible commodities with a total value 
                of not less than $3,000,000 during the course of the 
                project.''.

SEC. 3106. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD 
              NUTRITION PROGRAM.

    Section 3107 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 1736o-1) is amended--
            (1) in subsections (b), (c)(2)(B), (f)(1), (h), (i), and 
        (l)(1), by striking ``President'' each place it appears and 
        inserting ``Secretary'';
            (2) in subsection (d), by striking ``The President shall 
        designate 1 or more Federal agencies'' and inserting ``The 
        Secretary shall'';
            (3) in paragraph (f)(2), by striking ``implementing 
        agency'' and inserting ``Secretary''; and
            (4) in subsection (l)--
                    (A) by striking paragraph (1) 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 $84,000,000 for fiscal year 2009, 
        to remain available until expended.'';
                    (B) in paragraph (2), by striking ``2004 through 
                2007'' and inserting ``2008 through 2012''; and
                    (C) in paragraph (3), by striking ``any Federal 
                agency implementing or assisting'' and inserting ``the 
                Department of Agriculture or any other Federal agency 
                assisting''.

                       Subtitle C--Miscellaneous

SEC. 3201. BILL EMERSON HUMANITARIAN TRUST.

    Section 302 of the Bill Emerson Humanitarian Trust Act (7 U.S.C. 
1736f-1) is amended--
            (1) in subsection (a)--
                    (A) by striking ``establish a trust stock'' and 
                inserting ``establish and maintain a trust''; and
                    (B) by striking ``or any combination of the 
                commodities, totaling not more than 4,000,000 metric 
                tons'' and inserting ``any combination of the 
                commodities, or funds'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking subparagraph (D) 
                and inserting the following:
                    ``(D) funds made available--
                            ``(i) under paragraph (2)(B);
                            ``(ii) as a result of an exchange of any 
                        commodity held in the trust for an equivalent 
                        amount of funds from the market, if the 
                        Secretary determines that such a sale of the 
                        commodity on the market will not unduly disrupt 
                        domestic markets; or
                            ``(iii) to maximize the value of the trust, 
                        in accordance with subsection (d)(3).''; and
                    (B) in paragraph (2)(B)--
                            (i) in clause (i)--
                                    (I) by striking ``2007'' each place 
                                it appears and inserting ``2012'';
                                    (II) by striking ``(c)(2)'' and 
                                inserting ``(c)(1)''; and
                                    (III) by striking ``and'' at the 
                                end;
                            (ii) in clause (ii), by striking the period 
                        at the end and inserting ``; or''; and
                            (iii) by adding at the end the following:
                            ``(iii) from funds accrued through the 
                        management of the trust under subsection 
                        (d).'';
            (3) in subsection (c)--
                    (A) by striking paragraphs (1) and (2) and 
                inserting the following:
            ``(1) Releases for emergency assistance.--
                    ``(A) Definition of emergency.--
                            ``(i) In general.--In this paragraph, the 
                        term `emergency' means an urgent situation--
                                    ``(I) in which there is clear 
                                evidence that an event or series of 
                                events described in clause (ii) has 
                                occurred--
                                            ``(aa) that causes human 
                                        suffering; and
                                            ``(bb) for which a 
                                        government concerned has not 
                                        chosen, or has not the means, 
                                        to remedy; or
                                    ``(II) created by a demonstrably 
                                abnormal event or series of events that 
                                produces dislocation in the lives of 
                                residents of a country or region of a 
                                country on an exceptional scale.
                            ``(ii) Event or series of events.--An event 
                        or series of events referred to in clause (i) 
                        includes 1 or more of--
                                    ``(I) a sudden calamity, such as an 
                                earthquake, flood, locust infestation, 
                                or similar unforeseen disaster;
                                    ``(II) a human-made emergency 
                                resulting in--
                                            ``(aa) a significant influx 
                                        of refugees;
                                            ``(bb) the internal 
                                        displacement of populations; or
                                            ``(cc) the suffering of 
                                        otherwise affected populations;
                                    ``(III) food scarcity conditions 
                                caused by slow-onset events, such as 
                                drought, crop failure, pest 
                                infestation, and disease, that result 
                                in an erosion of the ability of 
                                communities and vulnerable populations 
                                to meet food needs; and
                                    ``(IV) severe food access or 
                                availability conditions resulting from 
                                sudden economic shocks, market failure, 
                                or economic collapse, that result in an 
                                erosion of the ability of communities 
                                and vulnerable populations to meet food 
                                needs.
                    ``(B) Releases.--
                            ``(i) In general.--Any funds or commodities 
                        held in the trust may be released to provide 
                        food, and cover any associated costs, under 
                        title II of the Food for Peace Act (7 U.S.C. 
                        1721 et seq.)--
                                    ``(I) to assist in averting an 
                                emergency, including during the period 
                                immediately preceding the emergency;
                                    ``(II) to respond to an emergency; 
                                or
                                    ``(III) for recovery and 
                                rehabilitation after an emergency.
                            ``(ii) Procedure.--A release under clause 
                        (i) shall be carried out in the same manner, 
                        and pursuant to the same authority as provided 
                        in title II of that Act.
                    ``(C) Insufficiency of other funds.--The funds and 
                commodities held in the trust shall be made immediately 
                available on a determination by the Administrator that 
                funds available for emergency needs under title II of 
                that Act (7 U.S.C. 1721 et seq.) for a fiscal year are 
                insufficient to meet emergency needs during the fiscal 
                year.
                    ``(D) Waiver relating to minimum tonnage 
                requirements.--Nothing in this paragraph requires a 
                waiver by the Administrator of the Agency for 
                International Development under section 204(a)(3) of 
                the Food for Peace Act (7 U.S.C. 1724(a)(3)) as a 
                condition for a release of funds or commodities under 
                subparagraph (B).''; and
                    (B) by redesignating paragraphs (3) through (5) as 
                paragraphs (2) through (4), respectively;
            (4) in subsection (d)--
                    (A) by redesignating paragraphs (1) through (3) as 
                subparagraphs (A) through (C), respectively, and 
                indenting the subparagraphs appropriately;
                    (B) by striking the subsection designation and 
                heading and all that follows through ``provide--'' and 
                inserting the following:
    ``(d) Management of Trust.--
            ``(1) In general.--The Secretary shall provide for the 
        management of eligible commodities and funds held in the trust 
        in a manner that is consistent with maximizing the value of the 
        trust, as determined by the Secretary.
            ``(2) Eligible commodities.--The Secretary shall provide--
        '';
                    (C) in paragraph (2) (as redesignated by 
                subparagraph (B))--
                            (i) in subparagraph (B) (as redesignated by 
                        subparagraph (A)), by striking ``and'' at the 
                        end; and
                            (ii) in subparagraph (C) (as redesignated 
                        by subparagraph (A)), by striking the period at 
                        the end and inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(3) Funds.--
                    ``(A) Exchanges.--If any commodity held in the 
                trust is exchanged for funds under subsection 
                (b)(1)(D)(ii), the funds shall be held in the trust 
                until the date on which the funds are released in the 
                case of an emergency under subsection (c).
                    ``(B) Investment.--The Secretary may invest funds 
                held in the trust in any short-term obligation of the 
                United States or any other low-risk short-term 
                instrument or security insured by the Federal 
                Government in which a regulated insurance company may 
                invest under the laws of the District of Columbia.''; 
                and
            (5) in subsection (h), in each of paragraphs (1) and (2), 
        by striking ``2007'' each place it appears and inserting 
        ``2012''.

SEC. 3202. GLOBAL CROP DIVERSITY TRUST.

    (a) Contribution.--The Administrator of the United States Agency 
for International Development shall contribute funds to endow the 
Global Crop Diversity Trust (referred to in this section as the 
``Trust'') to assist in the conservation of genetic diversity in food 
crops through the collection and storage of the germplasm of food crops 
in a manner that provides for--
            (1) the maintenance and storage of seed collections;
            (2) the documentation and cataloguing of the genetics and 
        characteristics of conserved seeds to ensure efficient 
        reference for researchers, plant breeders, and the public;
            (3) building the capacity of seed collection in developing 
        countries;
            (4) making information regarding crop genetic data publicly 
        available for researchers, plant breeders, and the public 
        (including through the provision of an accessible Internet 
        website);
            (5) the operation and maintenance of a back-up facility in 
        which are stored duplicate samples of seeds, in the case of 
        natural or man-made disasters; and
            (6) oversight designed to ensure international coordination 
        of those actions and efficient, public accessibility to that 
        diversity through a cost-effective system.
    (b) United States Contribution Limit.--The aggregate contributions 
of funds of the Federal Government provided to the Trust shall not 
exceed 25 percent of the total amount of funds contributed to the Trust 
from all sources.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $60,000,000 for the period of 
fiscal years 2008 through 2012.

SEC. 3203. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

    Section 3205 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 5680) is amended by striking subsection (d) and inserting the 
following:
    ``(d) Annual Report.--Not later than 180 days after the date of 
enactment of the Food, Conservation, and Energy Act of 2008 and 
annually thereafter, the Secretary shall submit to the appropriate 
committees of Congress a report that contains, for the period covered 
by the report, a description of each factor that affects the export of 
specialty crops, including each factor relating to any--
            ``(1) significant sanitary or phytosanitary issue; or
            ``(2) trade barrier.
    ``(e) 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 amounts.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall use to carry out this 
        section--
                    ``(A) $4,000,000 for fiscal year 2008;
                    ``(B) $7,000,000 for fiscal year 2009;
                    ``(C) $8,000,000 for fiscal year 2010;
                    ``(D) $9,000,000 for fiscal year 2011; and
                    ``(E) $9,000,000 for fiscal year 2012.''.

SEC. 3204. EMERGING MARKETS AND FACILITY GUARANTEE LOAN PROGRAM.

    Section 1542 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5622 note; Public Law 101-624) is amended--
            (1) in subsection (a), by striking ``2007'' and inserting 
        ``2012'';
            (2) in subsection (b)--
                    (A) in the first sentence, by redesignating 
                paragraphs (1) and (2) as subparagraphs (A) and (B), 
                respectively, and indenting appropriately;
                    (B) by striking ``A portion'' and inserting the 
                following:
            ``(1) In general.--A portion'';
                    (C) in the second sentence, by striking ``The 
                Commodity Credit Corporation'' and inserting the 
                following:
            ``(2) Priority.--The Commodity Credit Corporation''; and
                    (D) by adding at the end the following:
            ``(3) Construction waiver.--The Secretary may waive any 
        applicable requirements relating to the use of United States 
        goods in the construction of a proposed facility, if the 
        Secretary determines that--
                    ``(A) goods from the United States are not 
                available; or
                    ``(B) the use of goods from the United States is 
                not practicable.
            ``(4) Term of guarantee.--A facility payment guarantee 
        under this subsection shall be for a term that is not more than 
        the lesser of--
                    ``(A) the term of the depreciation schedule of the 
                facility assisted; or
                    ``(B) 20 years.''; and
            (3) in subsection (d)(1)(A)(i) by striking ``2007'' and 
        inserting ``2012''.

SEC. 3205. CONSULTATIVE GROUP TO ELIMINATE THE USE OF CHILD LABOR AND 
              FORCED LABOR IN IMPORTED AGRICULTURAL PRODUCTS.

    (a) Definitions.--In this section:
            (1) Child labor.--The term ``child labor'' means the worst 
        forms of child labor as defined in International Labor 
        Convention 182, the Convention Concerning the Prohibition and 
        Immediate Action for the Elimination of the Worst Forms of 
        Child Labor, done at Geneva on June 17, 1999.
            (2) Consultative group.--The term ``Consultative Group'' 
        means the Consultative Group to Eliminate the Use of Child 
        Labor and Forced Labor in Imported Agricultural Products 
        established under subsection (b).
            (3) Forced labor.--The term ``forced labor'' means all work 
        or service--
                    (A) that is exacted from any individual under 
                menace of any penalty for nonperformance of the work or 
                service, and for which--
                            (i) the work or service is not offered 
                        voluntarily; or
                            (ii) the work or service is performed as a 
                        result of coercion, debt bondage, or 
                        involuntary servitude (as those terms are 
                        defined in section 103 of the Trafficking 
                        Victims Protection Act of 2000 (22 U.S.C. 
                        7102)); and
                    (B) by 1 or more individuals who, at the time of 
                performing the work or service, were being subjected to 
                a severe form of trafficking in persons (as that term 
                is defined in that section).
    (b) Establishment.--There is established a group to be known as the 
``Consultative Group to Eliminate the Use of Child Labor and Forced 
Labor in Imported Agricultural Products'' to develop recommendations 
relating to guidelines to reduce the likelihood that agricultural 
products or commodities imported into the United States are produced 
with the use of forced labor and child labor.
    (c) Duties.--
            (1) In general.--Not later than 2 years after the date of 
        enactment of this Act and in accordance with section 105(d) of 
        the Trafficking Victims Protection Act of 2000 (22 U.S.C. 
        7103(d)), as applicable to the importation of agricultural 
        products made with the use of child labor or forced labor, the 
        Consultative Group shall develop, and submit to the Secretary, 
        recommendations relating to a standard set of practices for 
        independent, third-party monitoring and verification for the 
        production, processing, and distribution of agricultural 
        products or commodities to reduce the likelihood that 
        agricultural products or commodities imported into the United 
        States are produced with the use of forced labor or child 
        labor.
            (2) Guidelines.--
                    (A) In general.--Not later than 1 year after the 
                date on which the Secretary receives recommendations 
                under paragraph (1), the Secretary shall release 
                guidelines for a voluntary initiative to enable 
                entities to address issues raised by the Trafficking 
                Victims Protection Act of 2000 (22 U.S.C. 7101 et 
                seq.).
                    (B) Requirements.--Guidelines released under 
                subparagraph (A) shall be published in the Federal 
                Register and made available for public comment for a 
                period of 90 days.
    (d) Membership.--The Consultative Group shall be composed of not 
more than 13 individuals, of whom--
            (1) 2 members shall represent the Department of 
        Agriculture, as determined by the Secretary;
            (2) 1 member shall be the Deputy Under Secretary for 
        International Affairs of the Department of Labor;
            (3) 1 member shall represent the Department of State, as 
        determined by the Secretary of State;
            (4) 3 members shall represent private agriculture-related 
        enterprises, which may include retailers, food processors, 
        importers, and producers, of whom at least 1 member shall be an 
        importer, food processor, or retailer who utilizes independent, 
        third-party supply chain monitoring for forced labor or child 
        labor;
            (5) 2 members shall represent institutions of higher 
        education and research institutions, as determined appropriate 
        by the Bureau of International Labor Affairs of the Department 
        of Labor;
            (6) 1 member shall represent an organization that provides 
        independent, third-party certification services for labor 
        standards for producers or importers of agricultural 
        commodities or products; and
            (7) 3 members shall represent organizations described in 
        section 501(c)(3) of the Internal Revenue Code of 1986 that 
        have expertise on the issues of international child labor and 
        do not possess a conflict of interest associated with 
        establishment of the guidelines issued under subsection (c)(2), 
        as determined by the Bureau of International Labor Affairs of 
        the Department of Labor, including representatives from 
        consumer organizations and trade unions, if appropriate.
    (e) Chairperson.--A representative of the Department of Agriculture 
appointed under subsection (d)(1), as determined by the Secretary, 
shall serve as the chairperson of the Consultative Group.
    (f) Requirements.--Not less than 4 times per year, the Consultative 
Group shall meet at the call of the Chairperson, after reasonable 
notice to all members, to develop recommendations described in 
subsection (c)(1).
    (g) Nonapplicability of FACA.--The Federal Advisory Committee Act 
(5 U.S.C. App.) shall not apply to the Consultative Group.
    (h) Annual Reports.--Not later than 1 year after the date of 
enactment of this Act, and annually thereafter through December 31, 
2012, the Secretary shall submit to the Committees on Agriculture and 
Foreign Affairs of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report describing 
the activities and recommendations of the Consultative Group.
    (i) Termination of Authority.--The Consultative Group shall 
terminate on December 31, 2012.

SEC. 3206. LOCAL AND REGIONAL FOOD AID PROCUREMENT PROJECTS.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Agency for International Development.
            (2) Appropriate committee of congress.--The term 
        ``appropriate committee of Congress'' means--
                    (A) the Committee on Agriculture, Nutrition, and 
                Forestry of the Senate;
                    (B) the Committee on Agriculture of the House of 
                Representatives; and
                    (C) the Committee on Foreign Affairs of the House 
                of Representatives.
            (3) Eligible commodity.--The term ``eligible commodity'' 
        means an agricultural commodity (or the product of an 
        agricultural commodity) that--
                    (A) is produced in, and procured from, a developing 
                country; and
                    (B) at a minimum, meets each nutritional, quality, 
                and labeling standard of the country that receives the 
                agricultural commodity, as determined by the Secretary.
            (4) Eligible organization.--The term ``eligible 
        organization'' means an organization that is--
                    (A) described in section 202(d) of the Food for 
                Peace Act (7 U.S.C. 1722(d)); and
                    (B) with respect to nongovernmental organizations, 
                subject to regulations promulgated or guidelines issued 
                to carry out this section, including United States 
                audit requirements that are applicable to 
                nongovernmental organizations.
    (b) Study; Field-Based Projects.--
            (1) Study.--
                    (A) In general.--Not later than 30 days after the 
                date of enactment of this Act, the Secretary shall 
                initiate a study of prior local and regional 
                procurements for food aid programs conducted by--
                            (i) other donor countries;
                            (ii) private voluntary organizations; and
                            (iii) the World Food Program of the United 
                        Nations.
                    (B) Report.--Not later than 180 days after the date 
                of enactment of this Act, the Secretary shall submit to 
                the appropriate committees of Congress a report 
                containing the results of the study conducted under 
                subparagraph (A).
            (2) Field-based projects.--
                    (A) In general.--In accordance with subparagraph 
                (B), the Secretary shall provide grants to, or enter 
                into cooperative agreements with, eligible 
                organizations to carry out field-based projects that 
                consist of local or regional procurements of eligible 
                commodities to respond to food crises and disasters in 
                accordance with this section.
                    (B) Consultation with administrator.--In carrying 
                out the development and implementation of field-based 
                projects under subparagraph (A), the Secretary shall 
                consult with the Administrator.
    (c) Procurement.--
            (1) In general.--Any eligible commodity that is procured 
        for a field-based project carried out under subsection (b)(2) 
        shall be procured through any approach or methodology that the 
        Secretary considers to be an effective approach or methodology 
        to provide adequate information regarding the manner by which 
        to expedite, to the maximum extent practicable, the provision 
        of food aid to affected populations without significantly 
        increasing commodity costs for low-income consumers who procure 
        commodities sourced from the same markets at which the eligible 
        commodity is procured.
            (2) Requirements.--
                    (A) Impact on local farmers and countries.--The 
                Secretary shall ensure that the local or regional 
                procurement of any eligible commodity under this 
                section will not have a disruptive impact on farmers 
                located in, or the economy of--
                            (i) the recipient country of the eligible 
                        commodity; or
                            (ii) any country in the region in which the 
                        eligible commodity may be procured.
                    (B) Transshipment.--The Secretary shall, in 
                accordance with such terms and conditions as the 
                Secretary considers to be appropriate, require from 
                each eligible organization commitments designed to 
                prevent or restrict--
                            (i) the resale or transshipment of any 
                        eligible commodity procured under this section 
                        to any country other than the recipient 
                        country; and
                            (ii) the use of the eligible commodity for 
                        any purpose other than food aid.
                    (C) World prices.--
                            (i) In general.--In carrying out this 
                        section, the Secretary shall take any 
                        precaution that the Secretary considers to be 
                        reasonable to ensure that the procurement of 
                        eligible commodities will not unduly disrupt--
                                    (I) world prices for agricultural 
                                commodities; or
                                    (II) normal patterns of commercial 
                                trade with foreign countries.
                            (ii) Procurement price.--The procurement of 
                        any eligible commodity shall be made at a 
                        reasonable market price with respect to the 
                        economy of the country in which the eligible 
                        commodity is procured, as determined by the 
                        Secretary.
    (d) Regulations; Guidelines.--
            (1) In general.--In accordance with paragraph (2), not 
        later than 180 days after the date of completion of the study 
        under subsection (b)(1), the Secretary shall promulgate 
        regulations or issue guidelines to carry out field-based 
        projects under this section.
            (2) Requirements.--
                    (A) Use of study.--In promulgating regulations or 
                issuing guidelines under paragraph (1), the Secretary 
                shall take into consideration the results of the study 
                described in subsection (b)(1).
                    (B) Public review and comment.--In promulgating 
                regulations or issuing guidelines under paragraph (1), 
                the Secretary shall provide an opportunity for public 
                review and comment.
            (3) Availability.--The Secretary shall not approve the 
        procurement of any eligible commodity under this section until 
        the date on which the Secretary promulgates regulations or 
        issues guidelines under paragraph (1).
    (e) Field-Based Project Grants or Cooperative Agreements.--
            (1) In general.--The Secretary shall award grants to, or 
        enter into cooperative agreements with, eligible organizations 
        to carry out field-based projects.
            (2) Requirements of eligible organizations.--
                    (A) Application.--
                            (i) In general.--To be eligible to receive 
                        a grant from, or enter into a cooperative 
                        agreement with, the Secretary under this 
                        subsection, an eligible organization shall 
                        submit to the Secretary an application by such 
                        date, in such manner, and containing such 
                        information as the Secretary may require.
                            (ii) Other applicable requirements.--Any 
                        other applicable requirement relating to the 
                        submission of proposals for consideration shall 
                        apply to the submission of an application 
                        required under clause (i), as determined by the 
                        Secretary.
                    (B) Completion requirement.--To be eligible to 
                receive a grant from, or enter into a cooperative 
                agreement with, the Secretary under this subsection, an 
                eligible organization shall agree--
                            (i) to collect by September 30, 2011, data 
                        containing the information required under 
                        subsection (f)(1)(B) relating to the field-
                        based project funded through the grant; and
                            (ii) to provide to the Secretary the data 
                        collected under clause (i).
            (3) Requirements of secretary.--
                    (A) Project diversity.--
                            (i) In general.--Subject to clause (ii) and 
                        subparagraph (B), in selecting proposals for 
                        field-based projects to fund under this 
                        section, the Secretary shall select a diversity 
                        of projects, including projects located in--
                                    (I) food surplus regions;
                                    (II) food deficit regions (that are 
                                carried out using regional procurement 
                                methods); and
                                    (III) multiple geographical 
                                regions.
                            (ii) Priority.--In selecting proposals for 
                        field-based projects under clause (i), the 
                        Secretary shall ensure that the majority of 
                        selected proposals are for field-based projects 
                        that--
                                    (I) are located in Africa; and
                                    (II) procure eligible commodities 
                                that are produced in Africa.
                    (B) Development assistance.--A portion of the funds 
                provided under this subsection shall be made available 
                for field-based projects that provide development 
                assistance for a period of not less than 1 year.
            (4) Availability.--The Secretary shall not award a grant to 
        any eligible organization under paragraph (1) until the date on 
        which the Secretary promulgates regulations or issues 
        guidelines under subsection (d)(1).
    (f) Independent Evaluations; Report.--
            (1) Independent evaluations.--
                    (A) In general.--Not later than November 1, 2011, 
                the Secretary shall ensure that an independent third 
                party conducts an independent evaluation of all field-
                based projects that--
                            (i) addresses each factor described in 
                        subparagraph (B); and
                            (ii) is conducted in accordance with this 
                        section.
                    (B) Required factors.--The Secretary shall require 
                the independent third party to develop--
                            (i) with respect to each relevant market in 
                        which an eligible commodity was procured under 
                        this section, a description of--
                                    (I) the prevailing and historic 
                                supply, demand, and price movements of 
                                the market (including the extent of 
                                competition for procurement bids);
                                    (II) the impact of the procurement 
                                of the eligible commodity on producer 
                                and consumer prices in the market;
                                    (III) each government market 
                                interference or other activity of the 
                                donor country that might have 
                                significantly affected the supply or 
                                demand of the eligible commodity in the 
                                area at which the local or regional 
                                procurement occurred;
                                    (IV) the quantities and types of 
                                eligible commodities procured in the 
                                market;
                                    (V) the time frame for procurement 
                                of each eligible commodity; and
                                    (VI) the total cost of the 
                                procurement of each eligible commodity 
                                (including storage, handling, 
                                transportation, and administrative 
                                costs);
                            (ii) an assessment regarding--
                                    (I) whether the requirements of 
                                this section have been met;
                                    (II) the impact of different 
                                methodologies and approaches on--
                                            (aa) local and regional 
                                        agricultural producers 
                                        (including large and small 
                                        agricultural producers);
                                            (bb) markets;
                                            (cc) low-income consumers; 
                                        and
                                            (dd) program recipients; 
                                        and
                                    (III) the length of the period 
                                beginning on the date on which the 
                                Secretary initiated the procurement 
                                process and ending on the date of 
                                delivery of eligible commodities;
                            (iii) a comparison of different 
                        methodologies used to carry out this section, 
                        with respect to--
                                    (I) the benefits to local 
                                agriculture;
                                    (II) the impact on markets and 
                                consumers;
                                    (III) the period of time required 
                                for procurement and delivery;
                                    (IV) quality and safety assurances; 
                                and
                                    (V) implementation costs; and
                            (iv) to the extent adequate information is 
                        available (including the results of the report 
                        required under subsection (b)(1)(B)), a 
                        comparison of the different methodologies used 
                        by other donor countries to make local and 
                        regional procurements.
                    (C) Independent third party access to records and 
                reports.--The Secretary shall provide to the 
                independent third party access to each record and 
                report that the independent third party determines to 
                be necessary to complete the independent evaluation.
                    (D) Public access to records and reports.--Not 
                later than 180 days after the date described in 
                paragraph (2), the Secretary shall provide public 
                access to each record and report described in 
                subparagraph (C).
            (2) Report.--Not later than 4 years after the date of 
        enactment of this Act, the Secretary shall submit to the 
        appropriate committees of Congress a report that contains the 
        analysis and findings of the independent evaluation conducted 
        under paragraph (1)(A).
    (g) 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 amounts.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use to carry out this 
        section--
                    (A) $5,000,000 for fiscal year 2009;
                    (B) $25,000,000 for fiscal year 2010;
                    (C) $25,000,000 for fiscal year 2011; and
                    (D) $5,000,000 for fiscal year 2012.

                      Subtitle D--Softwood Lumber

SEC. 3301. SOFTWOOD LUMBER.

    (a) In General.--The Tariff Act of 1930 (19 U.S.C. 1202 et seq.) is 
amended by adding at the end the following new title:

                     ``TITLE VIII--SOFTWOOD LUMBER

``SEC. 801. SHORT TITLE; TABLE OF CONTENTS.

    ``(a) Short Title.--This title may be cited as the `Softwood Lumber 
Act of 2008'.
    ``(b) Table of Contents.--The table of contents for this title is 
as follows:

                     ``TITLE VIII--SOFTWOOD LUMBER

``Sec. 801. Short title; table of contents.
``Sec. 802. Definitions.
``Sec. 803. Establishment of softwood lumber importer declaration 
                            program.
``Sec. 804. Scope of softwood lumber importer declaration program.
``Sec. 805. Export charge determination and publication.
``Sec. 806. Reconciliation.
``Sec. 807. Verification.
``Sec. 808. Penalties.
``Sec. 809. Reports.

``SEC. 802. DEFINITIONS.

    ``In this title:
            ``(1) Appropriate congressional committees.--The term 
        `appropriate congressional committees' means the Committee on 
        Finance of the Senate and the Committee on Ways and Means of 
        the House of Representatives.
            ``(2) Country of export.--The term `country of export' 
        means the country (including any political subdivision of the 
        country) from which softwood lumber or a softwood lumber 
        product is exported before entering the United States.
            ``(3) Customs laws of the united states.--The term `customs 
        laws of the United States' means any law or regulation enforced 
        or administered by U.S. Customs and Border Protection.
            ``(4) Export charges.--The term `export charges' means any 
        tax, charge, or other fee collected by the country from which 
        softwood lumber or a softwood lumber product, described in 
        section 804(a), is exported pursuant to an international 
        agreement entered into by that country and the United States.
            ``(5) Export price.--
                    ``(A) In general.--The term `export price' means 
                one of the following:
                            ``(i) In the case of softwood lumber or a 
                        softwood lumber product that has undergone only 
                        primary processing, the value that would be 
                        determined F.O.B. at the facility where the 
                        product underwent the last primary processing 
                        before export.
                            ``(ii)(I) In the case of softwood lumber or 
                        a softwood lumber product described in 
                        subclause (II), the value that would be 
                        determined F.O.B. at the facility where the 
                        lumber or product underwent the last primary 
                        processing.
                            ``(II) Softwood lumber or a softwood lumber 
                        product described in this subclause is lumber 
                        or a product that underwent the last 
                        remanufacturing before export by a manufacturer 
                        who--
                                    ``(aa) does not hold tenure rights 
                                provided by the country of export;
                                    ``(bb) did not acquire standing 
                                timber directly from the country of 
                                export; and
                                    ``(cc) is not related to the person 
                                who holds tenure rights or acquired 
                                standing timber directly from the 
                                country of export.
                            ``(iii)(I) In the case of softwood lumber 
                        or a softwood lumber product described in 
                        subclause (II), the value that would be 
                        determined F.O.B. at the facility where the 
                        product underwent the last processing before 
                        export.
                            ``(II) Softwood lumber or a softwood lumber 
                        product described in this subclause is lumber 
                        or a product that undergoes the last 
                        remanufacturing before export by a manufacturer 
                        who--
                                    ``(aa) holds tenure rights provided 
                                by the country of export;
                                    ``(bb) acquired standing timber 
                                directly from the country of export; or
                                    ``(cc) is related to a person who 
                                holds tenure rights or acquired 
                                standing timber directly from the 
                                country of export.
                    ``(B) Related persons.--For purposes of this 
                paragraph, a person is related to another person if--
                            ``(i) the person bears a relationship to 
                        such other person described in section 152(a) 
                        of the Internal Revenue Code of 1986;
                            ``(ii) the person bears a relationship to 
                        such other person described in section 267(b) 
                        of such Code, except that `5 percent' shall be 
                        substituted for `50 percent' each place it 
                        appears;
                            ``(iii) the person and such other person 
                        are part of a controlled group of corporations, 
                        as that term is defined in section 1563(a) of 
                        such Code, except that `5 percent' shall be 
                        substituted for `80 percent' each place it 
                        appears;
                            ``(iv) the person is an officer or director 
                        of such other person; or
                            ``(v) the person is the employer of such 
                        other person.
                    ``(C) Tenure rights.--For purposes of this 
                paragraph, the term `tenure rights' means rights to 
                harvest timber from public land granted by the country 
                of export.
                    ``(D) Export price where f.o.b. value cannot be 
                determined.--
                            ``(i) In general.--In the case of softwood 
                        lumber or a softwood lumber product described 
                        in clause (i), (ii), or (iii) of subparagraph 
                        (A) for which an F.O.B. value cannot be 
                        determined, the export price shall be the 
                        market price for the identical lumber or 
                        product sold in an arm's-length transaction in 
                        the country of export at approximately the same 
                        time as the exported lumber or product. The 
                        market price shall be determined in the 
                        following order of preference:
                                    ``(I) The market price for the 
                                lumber or a product sold at 
                                substantially the same level of trade 
                                as the exported lumber or product but 
                                in different quantities.
                                    ``(II) The market price for the 
                                lumber or a product sold at a different 
                                level of trade than the exported lumber 
                                or product but in similar quantities.
                                    ``(III) The market price for the 
                                lumber or a product sold at a different 
                                level of trade than the exported lumber 
                                or product and in different quantities.
                            ``(ii) Level of trade.--For purposes of 
                        clause (i), `level of trade' shall be 
                        determined in the same manner as provided under 
                        section 351.412(c) of title 19, Code of Federal 
                        Regulations (as in effect on January 1, 2008).
            ``(6) F.O.B.--The term `F.O.B.' means a value consisting of 
        all charges payable by a purchaser, including those charges 
        incurred in the placement of merchandise on board of a 
        conveyance for shipment, but does not include the actual 
        shipping charges or any applicable export charges.
            ``(7) HTS.--The term `HTS' means the Harmonized Tariff 
        Schedule of the United States (19 U.S.C. 1202) (as in effect on 
        January 1, 2008).
            ``(8) Person.--The term `person' includes any individual, 
        partnership, corporation, association, organization, business 
        trust, government entity, or other entity subject to the 
        jurisdiction of the United States.
            ``(9) United states.--The term `United States' means the 
        customs territory of the United States, as defined in General 
        Note 2 of the HTS.

``SEC. 803. ESTABLISHMENT OF SOFTWOOD LUMBER IMPORTER DECLARATION 
              PROGRAM.

    ``(a) Establishment of Program.--
            ``(1) In general.--The President shall establish and 
        maintain an importer declaration program with respect to the 
        importation of softwood lumber and softwood lumber products 
        described in section 804(a). The importer declaration program 
        shall require importers of softwood lumber and softwood lumber 
        products described in section 804(a) to provide the information 
        required under subsection (b) and declare the information 
        required by subsection (c), and require that such information 
        accompany the entry summary documentation.
            ``(2) Electronic record.--The President shall establish an 
        electronic record that includes the importer information 
        required under subsection (b) and the declarations required 
        under subsection (c).
    ``(b) Required Information.--The President shall require the 
following information to be submitted by any person seeking to import 
softwood lumber or softwood lumber products described in section 
804(a):
            ``(1) The export price for each shipment of softwood lumber 
        or softwood lumber products.
            ``(2) The estimated export charge, if any, applicable to 
        each shipment of softwood lumber or softwood lumber products as 
        calculated by applying the percentage determined and published 
        by the Under Secretary for International Trade of the 
        Department of Commerce pursuant to section 805 to the export 
        price provided in subsection (b)(1).
    ``(c) Importer Declarations.--Pursuant to procedures prescribed by 
the President, any person seeking to import softwood lumber or softwood 
lumber products described in section 804(a) shall declare that--
            ``(1) the person has made appropriate inquiry, including 
        seeking appropriate documentation from the exporter and 
        consulting the determinations published by the Under Secretary 
        for International Trade of the Department of Commerce pursuant 
        to section 805(b); and
            ``(2) to the best of the person's knowledge and belief--
                    ``(A) the export price provided pursuant to 
                subsection (b)(1) is determined in accordance with the 
                definition provided in section 802(5);
                    ``(B) the export price provided pursuant to 
                subsection (b)(1) is consistent with the export price 
                provided on the export permit, if any, granted by the 
                country of export; and
                    ``(C) the exporter has paid, or committed to pay, 
                all export charges due--
                            ``(i) in accordance with the volume, export 
                        price, and export charge rate or rates, if any, 
                        as calculated under an international agreement 
                        entered into by the country of export and the 
                        United States; and
                            ``(ii) consistent with the export charge 
                        determinations published by the Under Secretary 
                        for International Trade pursuant to section 
                        805(b).

``SEC. 804. SCOPE OF SOFTWOOD LUMBER IMPORTER DECLARATION PROGRAM.

    ``(a) Products Included in Program.--The following products shall 
be subject to the importer declaration program established under 
section 803:
            ``(1) In general.--All softwood lumber and softwood lumber 
        products classified under subheading 4407.10.00, 4409.10.10, 
        4409.10.20, or 4409.10.90 of the HTS, including the following 
        softwood lumber, flooring, and siding:
                    ``(A) Coniferous wood, sawn or chipped lengthwise, 
                sliced or peeled, whether or not planed, sanded, or 
                finger-jointed, of a thickness exceeding 6 millimeters.
                    ``(B) Coniferous wood siding (including strips and 
                friezes for parquet flooring, not assembled) 
                continuously shaped (tongued, grooved, rabbeted, 
                chamfered, v-jointed, beaded, molded, rounded, or the 
                like) along any of its edges or faces, whether or not 
                planed, sanded, or finger-jointed.
                    ``(C) Other coniferous wood (including strips and 
                friezes for parquet flooring, not assembled) 
                continuously shaped (tongued, grooved, rabbeted, 
                chamfered, v-jointed, beaded, molded, rounded, or the 
                like) along any of its edges or faces (other than wood 
                moldings and wood dowel rods) whether or not planed, 
                sanded, or finger-jointed.
                    ``(D) Coniferous wood flooring (including strips 
                and friezes for parquet flooring, not assembled) 
                continuously shaped (tongued, grooved, rabbeted, 
                chamfered, v-jointed, beaded, molded, rounded, or the 
                like) along any of its edges or faces, whether or not 
                planed, sanded, or finger-jointed.
                    ``(E) Coniferous drilled and notched lumber and 
                angle cut lumber.
            ``(2) Products continually shaped.--Any product classified 
        under subheading 4409.10.05 of the HTS that is continually 
        shaped along its end or side edges.
            ``(3) Other lumber products.--Except as otherwise provided 
        in subsection (b) or (c), softwood lumber products that are 
        stringers, radius-cut box-spring frame components, fence 
        pickets, truss components, pallet components, and door and 
        window frame parts classified under subheading 4418.90.46.95, 
        4421.90.70.40, or 4421.90.97.40 of the HTS.
    ``(b) Products Excluded From Program.--The following products shall 
be excluded from the importer declaration program established under 
section 803:
            ``(1) Trusses and truss kits, properly classified under 
        subheading 4418.90 of the HTS.
            ``(2) I-joist beams.
            ``(3) Assembled box-spring frames.
            ``(4) Pallets and pallet kits, properly classified under 
        subheading 4415.20 of HTS.
            ``(5) Garage doors.
            ``(6) Edge-glued wood, properly classified under subheading 
        4421.90.97.40 of the HTS.
            ``(7) Complete door frames.
            ``(8) Complete window frames.
            ``(9) Furniture.
            ``(10) Articles brought into the United States temporarily 
        and for which an exemption from duty is claimed under 
        subchapter XIII of chapter 98 of the HTS.
            ``(11) Household and personal effects.
    ``(c) Exceptions for Certain Products.--The following softwood 
lumber products shall not be subject to the importer declaration 
program established under section 803:
            ``(1) Stringers.--Stringers (pallet components used for 
        runners), if the stringers--
                    ``(A) have at least 2 notches on the side, 
                positioned at equal distance from the center, to 
                properly accommodate forklift blades; and
                    ``(B) are properly classified under subheading 
                4421.90.97.40 of the HTS.
            ``(2) Box-spring frame kits.--
                    ``(A) In general.--Box-spring frame kits, if--
                            ``(i) the kits contain--
                                    ``(I) 2 wooden side rails;
                                    ``(II) 2 wooden end (or top) rails; 
                                and
                                    ``(III) varying numbers of wooden 
                                slats; and
                            ``(ii) the side rails and the end rails are 
                        radius-cut at both ends.
                    ``(B) Packaging.--Any kit described in subparagraph 
                (A) shall be individually packaged, and contain the 
                exact number of wooden components needed to make the 
                box-spring frame described on the entry documents, with 
                no further processing required. None of the components 
                contained in the package may exceed 1 inch in actual 
                thickness or 83 inches in length.
            ``(3) Radius-cut box-spring frame components.--Radius-cut 
        box-spring frame components, not exceeding 1 inch in actual 
        thickness or 83 inches in length, ready for assembly without 
        further processing, if radius cuts are present on both ends of 
        the boards and are substantial cuts so as to completely round 1 
        corner.
            ``(4) Fence pickets.--Fence pickets requiring no further 
        processing and properly classified under subheading 4421.90.70 
        of the HTS, 1 inch or less in actual thickness, up to 8 inches 
        wide, and 6 feet or less in length, and having finials or 
        decorative cuttings that clearly identify them as fence 
        pickets. In the case of dog-eared fence pickets, the corners of 
        the boards shall be cut off so as to remove pieces of wood in 
        the shape of isosceles right angle triangles with sides 
        measuring \3/4\ of an inch or more.
            ``(5) United states-origin lumber.--Lumber originating in 
        the United States that is exported to another country for minor 
        processing and imported into the United States if--
                    ``(A) the processing occurring in another country 
                is limited to kiln drying, planing to create smooth-to-
                size board, and sanding; and
                    ``(B) the importer establishes to the satisfaction 
                of U.S. Customs and Border Protection upon entry that 
                the lumber originated in the United States.
            ``(6) Softwood lumber.--Any softwood lumber or softwood 
        lumber product that originated in the United States, if the 
        importer, exporter, foreign processor, or original United 
        States producer establishes to the satisfaction of U.S. Customs 
        and Border Protection upon entry that the softwood lumber 
        entered and documented as originating in the United States was 
        first produced in the United States.
            ``(7) Home packages or kits.--
                    ``(A) In general.--Softwood lumber or softwood 
                lumber products contained in a single family home 
                package or kit, regardless of the classification under 
                the HTS, if the importer declares that the following 
                requirements have been met:
                            ``(i) The package or kit constitutes a full 
                        package of the number of wooden pieces 
                        specified in the plan, design, or blueprint 
                        necessary to produce a home of at least 700 
                        square feet produced to a specified plan, 
                        design, or blueprint.
                            ``(ii) The package or kit contains--
                                    ``(I) all necessary internal and 
                                external doors and windows, nails, 
                                screws, glue, subfloor, sheathing, 
                                beams, posts, and connectors; and
                                    ``(II) if included in the purchase 
                                contract, the decking, trim, drywall, 
                                and roof shingles specified in the 
                                plan, design, or blueprint.
                            ``(iii) Prior to importation, the package 
                        or kit is sold to a United States retailer that 
                        sells complete home packages or kits pursuant 
                        to a valid purchase contract referencing the 
                        particular home design, plan, or blueprint, and 
                        the contract is signed by a customer not 
                        affiliated with the importer.
                            ``(iv) Softwood lumber products entered as 
                        part of the package or kit, whether in a single 
                        entry or multiple entries on multiple days, are 
                        to be used solely for the construction of the 
                        single family home specified by the home 
                        design, plan, or blueprint matching the U.S. 
                        Customs and Border Protection import entry.
                    ``(B) Additional documentation required for home 
                packages and kits.--In the case of each entry of 
                products described in clauses (i) through (iv) of 
                subparagraph (A) the following documentation shall be 
                retained by the importer and made available to U.S. 
                Customs and Border Protection upon request:
                            ``(i) A copy of the appropriate home 
                        design, plan, or blueprint matching the customs 
                        entry in the United States.
                            ``(ii) A purchase contract from a retailer 
                        of home kits or packages signed by a customer 
                        not affiliated with the importer.
                            ``(iii) A listing of all parts in the 
                        package or kit being entered into the United 
                        States that conforms to the home design, plan, 
                        or blueprint for which such parts are being 
                        imported.
                            ``(iv) If a single contract involves 
                        multiple entries, an identification of all the 
                        items required to be listed under clause (iii) 
                        that are included in each individual shipment.
    ``(d) Products Covered.--For purposes of determining if a product 
is covered by the importer declaration program, the President shall be 
guided by the article descriptions provided in this section.

``SEC. 805. EXPORT CHARGE DETERMINATION AND PUBLICATION.

    ``(a) Determination.--The Under Secretary for International Trade 
of the Department of Commerce shall determine, on a monthly basis, any 
export charges (expressed as a percentage of export price) to be 
collected by a country of export from exporters of softwood lumber or 
softwood lumber products described in section 804(a) in order to ensure 
compliance with any international agreement entered into by that 
country and the United States.
    ``(b) Publication.--The Under Secretary for International Trade 
shall immediately publish any determination made under subsection (a) 
on the website of the International Trade Administration of the 
Department of Commerce, and in any other manner the Under Secretary 
considers appropriate.

``SEC. 806. RECONCILIATION.

    ``The Secretary of the Treasury shall conduct reconciliations to 
ensure the proper implementation and operation of international 
agreements entered into between a country of export of softwood lumber 
or softwood lumber products described in section 804(a) and the United 
States. The Secretary of Treasury shall reconcile the following:
            ``(1) The export price declared by a United States importer 
        pursuant to section 803(b)(1) with the export price reported to 
        the United States by the country of export, if any.
            ``(2) The export price declared by a United States importer 
        pursuant to section 803(b)(1) with the revised export price 
        reported to the United States by the country of export, if any.

``SEC. 807. VERIFICATION.

    ``(a) In General.--The Secretary of Treasury shall periodically 
verify the declarations made by a United States importer pursuant to 
section 803(c), including by determining whether--
            ``(1) the export price declared by a United States importer 
        pursuant to section 803(b)(1) is the same as the export price 
        provided on the export permit, if any, issued by the country of 
        export; and
            ``(2) the estimated export charge declared by a United 
        States importer pursuant to section 803(b)(2) is consistent 
        with the determination published by the Under Secretary for 
        International Trade pursuant to section 805(b).
    ``(b) Examination of Books and Records.--
            ``(1) In general.--Any record relating to the importer 
        declaration program required under section 803 shall be treated 
        as a record required to be maintained and produced under title 
        V of this Act.
            ``(2) Examination of records.--The Secretary of the 
        Treasury is authorized to take such action, and examine such 
        records, under section 509 of this Act, as the Secretary 
        determines necessary to verify the declarations made pursuant 
        to section 803(c) are true and accurate.

``SEC. 808. PENALTIES.

    ``(a) In General.--It shall be unlawful for any person to import 
into the United States softwood lumber or softwood lumber products in 
knowing violation of this title.
    ``(b) Civil Penalties.--Any person who commits an unlawful act as 
set forth in subsection (a) shall be liable for a civil penalty not to 
exceed $10,000 for each knowing violation.
    ``(c) Other Penalties.--In addition to the penalties provided for 
in subsection (b), any violation of this title that violates any other 
customs law of the United States shall be subject to any applicable 
civil and criminal penalty, including seizure and forfeiture, that may 
be imposed under such custom law or title 18, United States Code, with 
respect to the importation of softwood lumber and softwood lumber 
products described in section 804(a).
    ``(d) Factors To Consider in Assessing Penalties.--In determining 
the amount of civil penalties to be assessed under this section, 
consideration shall be given to any history of prior violations of this 
title by the person, the ability of the person to pay the penalty, the 
seriousness of the violation, and such other matters as fairness may 
require.
    ``(e) Notice.--No penalty may be assessed under this section 
against a person for violating a provision of this title unless the 
person is given notice and opportunity to make statements, both oral 
and written, with respect to such violation.
    ``(f) Exception.--Notwithstanding any other provision of this 
title, and without limitation, an importer shall not be found to have 
violated subsection 803(c) if--
            ``(1) the importer made an appropriate inquiry in 
        accordance with section 803(c)(1) with respect to the 
        declaration;
            ``(2) the importer produces records maintained pursuant to 
        section 807(b) that substantiate the declaration; and
            ``(3) there is not substantial evidence indicating that the 
        importer knew that the fact to which the importer made the 
        declaration was false.

``SEC. 809. REPORTS.

    ``(a) Semiannual Reports.--Not later than 180 days after the 
effective date of this title, and every 180 days thereafter, the 
President shall submit to the appropriate congressional committees a 
report--
            ``(1) describing the reconciliations conducted under 
        section 806, and the verifications conducted under section 807;
            ``(2) identifying the manner in which the United States 
        importers subject to reconciliations conducted under section 
        806 and verifications conducted under section 807 were chosen;
            ``(3) identifying any penalties imposed under section 808;
            ``(4) identifying any patterns of noncompliance with this 
        title; and
            ``(5) identifying any problems or obstacles encountered in 
        the implementation and enforcement of this title.
    ``(b) Subsidies Reports.--Not later than 180 days after the date of 
the enactment of this title, and every 180 days thereafter, the 
Secretary of Commerce shall provide to the appropriate congressional 
committees a report on any subsidies on softwood lumber or softwood 
lumber products, including stumpage subsidies, provided by countries of 
export.
    ``(c) GAO Reports.--The Comptroller General of the United States 
shall submit the following reports to the appropriate congressional 
committees:
            ``(1) Not later than 18 months after the date of the 
        enactment of this title, a report on the effectiveness of the 
        reconciliations conducted under section 806, and verifications 
        conducted under section 807.
            ``(2) Not later than 12 months after the date of the 
        enactment of this title, a report on whether countries that 
        export softwood lumber or softwood lumber products to the 
        United States are complying with any international agreements 
        entered into by those countries and the United States.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date that is 60 days after the date of the enactment of 
this Act.

                          TITLE IV--NUTRITION

                     Subtitle A--Food Stamp Program

             PART I--RENAMING OF FOOD STAMP ACT AND PROGRAM

SEC. 4001. RENAMING OF FOOD STAMP ACT AND PROGRAM.

    (a) Short Title.--The first section of the Food Stamp Act of 1977 
(7 U.S.C. 2011 note; Public Law 88-525) is amended by striking ``Food 
Stamp Act of 1977'' and inserting ``Food and Nutrition Act of 2008''.
    (b) Program.--The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et 
seq.) (as amended by subsection (a)) is amended by striking ``food 
stamp program'' each place it appears and inserting ``supplemental 
nutrition assistance program''.

SEC. 4002. CONFORMING AMENDMENTS.

    (a) In General.--
            (1) Section 4 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2013) is amended in the section heading by striking 
        ``food stamp program'' and inserting ``supplemental nutrition 
        assistance program''.
            (2) Section 5(h)(2)(A) of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2014(h)(2)(A)) is amended by striking ``Food 
        Stamp Disaster Task Force'' and inserting ``Disaster Task 
        Force''.
            (3) Section 6 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2015) is amended--
                    (A) in subsection (d)(3), by striking ``for food 
                stamps'';
                    (B) in subsection (j), in the subsection heading, 
                by striking ``Food Stamp''; and
                    (C) in subsection (o)--
                            (i) in paragraph (2), by striking ``food 
                        stamp benefits'' and inserting ``supplemental 
                        nutrition assistance program benefits''; and
                            (ii) in paragraph (6)--
                                    (I) in subparagraph (A)--
                                            (aa) in clause (i), by 
                                        striking ``food stamps'' and 
                                        inserting ``supplemental 
                                        nutrition assistance program 
                                        benefits''; and
                                            (bb) in clause (ii)--

                                                    (AA) in the matter 
                                                preceding subclause 
                                                (I), by striking ``a 
                                                food stamp recipient'' 
                                                and inserting ``a 
                                                member of a household 
                                                that receives 
                                                supplemental nutrition 
                                                assistance program 
                                                benefits''; and

                                                    (BB) by striking 
                                                ``food stamp benefits'' 
                                                each place it appears 
                                                and inserting 
                                                ``supplemental 
                                                nutrition assistance 
                                                program benefits''; and

                                    (II) in subparagraphs (D) and (E), 
                                by striking ``food stamp recipients'' 
                                each place it appears and inserting 
                                ``members of households that receive 
                                supplemental nutrition assistance 
                                program benefits''.
            (4) Section 7 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2016) is amended--
                    (A) in subsection (i)--
                            (i) in paragraph (3)(B)(ii), by striking 
                        ``food stamp households'' and inserting 
                        ``households receiving supplemental nutrition 
                        assistance program benefits''; and
                            (ii) in paragraph (7), by striking ``food 
                        stamp issuance'' and inserting ``supplemental 
                        nutrition assistance issuance''; and
                    (B) in subsection (k)--
                            (i) in paragraph (2), by striking ``food 
                        stamp benefits'' and inserting ``supplemental 
                        nutrition assistance program benefits''; and
                            (ii) in paragraph (3), by striking ``food 
                        stamp retail'' and inserting ``retail''.
            (5) Section 9(b)(1) of that Food and Nutrition Act of 2008 
        (7 U.S.C. 2018(b)(1)) is amended by striking ``food stamp 
        households'' and inserting ``households that receive 
        supplemental nutrition assistance program benefits''.
            (6) Section 11 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2020) is amended--
                    (A) in subsection (e)--
                            (i) by striking ``food stamps'' each place 
                        it appears and inserting ``supplemental 
                        nutrition assistance program benefits'';
                            (ii) by striking ``food stamp offices'' 
                        each place it appears and inserting 
                        ``supplemental nutrition assistance program 
                        offices'';
                            (iii) by striking ``food stamp office'' 
                        each place it appears and inserting 
                        ``supplemental nutrition assistance program 
                        office''; and
                            (iv) in paragraph (25)--
                                    (I) in the matter preceding 
                                subparagraph (A), by striking 
                                ``Simplified Food Stamp Program'' and 
                                inserting ``Simplified Supplemental 
                                Nutrition Assistance Program''; and
                                    (II) in subparagraph (A), by 
                                striking ``food stamp benefits'' and 
                                inserting ``supplemental nutrition 
                                assistance program benefits'';
                    (B) in subsection (k), by striking ``may issue, 
                upon request by the State agency, food stamps'' and 
                inserting ``may provide, on request by the State 
                agency, supplemental nutrition assistance program 
                benefits'';
                    (C) in subsection (l), by striking ``food stamp 
                participation'' and inserting ``supplemental nutrition 
                assistance program participation'';
                    (D) in subsections (q) and (r), in the subsection 
                headings, by striking ``Food Stamps'' each place it 
                appears and inserting ``Benefits'';
                    (E) in subsection (s), by striking ``food stamp 
                benefits'' each place it appears and inserting 
                ``supplemental nutrition assistance program benefits''; 
                and
                    (F) in subsection (t)(1)--
                            (i) in subparagraph (A), by striking ``food 
                        stamp application'' and inserting 
                        ``supplemental nutrition assistance program 
                        application''; and
                            (ii) in subparagraph (B), by striking 
                        ``food stamp benefits'' and inserting 
                        ``supplemental nutrition assistance program 
                        benefits''.
            (7) Section 14(b) of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2023(b)) is amended by striking ``food stamp''.
            (8) Section 16 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2025) is amended--
                    (A) in subsection (a)(4), by striking ``food stamp 
                informational activities'' and inserting 
                ``informational activities relating to the supplemental 
                nutrition assistance program'';
                    (B) in subsection (c)(9)(C), by striking ``food 
                stamp caseload'' and inserting ``the caseload under the 
                supplemental nutrition assistance program''; and
                    (C) in subsection (h)(1)(E)(i), by striking ``food 
                stamp recipients'' and inserting ``members of 
                households receiving supplemental nutrition assistance 
                program benefits''.
            (9) Section 17 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2026) is amended--
                    (A) in subsection (a)(2), by striking ``food stamp 
                benefits'' each place it appears and inserting 
                ``supplemental nutrition assistance program benefits'';
                    (B) in subsection (b)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (A), by 
                                striking ``food stamp benefits'' and 
                                inserting ``supplemental nutrition 
                                assistance program benefits''; and
                                    (II) in subparagraph (B)--
                                            (aa) in clause (ii)(II), by 
                                        striking ``food stamp 
                                        recipients'' and inserting 
                                        ``supplemental nutrition 
                                        assistance program 
                                        recipients'';
                                            (bb) in clause (iii)(I), by 
                                        striking ``the State's food 
                                        stamp households'' and 
                                        inserting ``the number of 
                                        households in the State 
                                        receiving supplemental 
                                        nutrition assistance program 
                                        benefits''; and
                                            (cc) in clause 
                                        (iv)(IV)(bb), by striking 
                                        ``food stamp deductions'' and 
                                        inserting ``supplemental 
                                        nutrition assistance program 
                                        deductions'';
                            (ii) in paragraph (2), by striking ``food 
                        stamp benefits'' and inserting ``supplemental 
                        nutrition assistance program benefits''; and
                            (iii) in paragraph (3)--
                                    (I) in subparagraph (A), by 
                                striking ``food stamp employment'' and 
                                inserting ``supplemental nutrition 
                                assistance program employment'';
                                    (II) in subparagraph (B), by 
                                striking ``food stamp recipients'' and 
                                inserting ``supplemental nutrition 
                                assistance program recipients'';
                                    (III) in subparagraph (C), by 
                                striking ``food stamps'' and inserting 
                                ``supplemental nutrition assistance 
                                program benefits''; and
                                    (IV) in subparagraph (D), by 
                                striking ``food stamp benefits'' and 
                                inserting ``supplemental nutrition 
                                assistance program benefits'';
                    (C) in subsection (c), by striking ``food stamps'' 
                and inserting ``supplemental nutrition assistance'';
                    (D) in subsection (d)--
                            (i) in paragraph (1)(B), by striking ``food 
                        stamp benefits'' and inserting ``supplemental 
                        nutrition assistance program benefits'';
                            (ii) in paragraph (2)--
                                    (I) in subparagraph (A), by 
                                striking ``food stamp allotments'' each 
                                place it appears and inserting 
                                ``allotments''; and
                                    (II) in subparagraph (C)(ii), by 
                                striking ``food stamp benefit'' and 
                                inserting ``supplemental nutrition 
                                assistance program benefits''; and
                            (iii) in paragraph (3)(E), by striking 
                        ``food stamp benefits'' and inserting 
                        ``supplemental nutrition assistance program 
                        benefits'';
                    (E) in subsections (e) and (f), by striking ``food 
                stamp benefits'' each place it appears and inserting 
                ``supplemental nutrition assistance program benefits'';
                    (F) in subsection (g), in the first sentence, by 
                striking ``receipt of food stamp'' and inserting 
                ``receipt of supplemental nutrition assistance 
                program''; and
                    (G) in subsection (j), by striking ``food stamp 
                agencies'' and inserting ``supplemental nutrition 
                assistance program agencies''.
            (10) Section 18(a)(3)(A)(ii) of the Food and Nutrition Act 
        of 2008 (7 U.S.C. 2027(a)(3)(A)(ii)) is amended by striking 
        ``food stamps'' and inserting ``supplemental nutrition 
        assistance program benefits''.
            (11) Section 22 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2031) is amended--
                    (A) in the section heading, by striking ``food 
                stamp portion of minnesota family investment plan'' and 
                inserting ``minnesota family investment project'';
                    (B) in subsections (b)(12) and (d)(3), by striking 
                ``the Food Stamp Act, as amended,'' each place it 
                appears and inserting ``this Act''; and
                    (C) in subsection (g)(1), by striking ``the Food 
                Stamp Act of 1977 (7 U.S.C. 2011 et seq.)'' and 
                inserting ``this Act''.
            (12) Section 26 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2035) is amended--
                    (A) in the section heading, by striking 
                ``simplified food stamp program'' and inserting 
                ``simplified supplemental nutrition assistance 
                program''; and
                    (B) in subsection (b), by striking ``simplified 
                food stamp program'' and inserting ``simplified 
                supplemental nutrition assistance program''.
    (b) Conforming Cross-References.--
            (1) In general.--Each provision of law described in 
        paragraph (2) is amended (as applicable)--
                    (A) by striking ``food stamp program'' each place 
                it appears and inserting ``supplemental nutrition 
                assistance program'';
                    (B) by striking ``Food Stamp Act of 1977'' each 
                place it appears and inserting ``Food and Nutrition Act 
                of 2008'';
                    (C) by striking ``Food Stamp Act'' each place it 
                appears and inserting ``Food and Nutrition Act of 
                2008'';
                    (D) by striking ``food stamp'' each place it 
                appears and inserting ``supplemental nutrition 
                assistance program benefits'';
                    (E) by striking ``food stamps'' each place it 
                appears and inserting ``supplemental nutrition 
                assistance program benefits'';
                    (F) in each applicable title, subtitle, chapter, 
                subchapter, and section heading, by striking ``food 
                stamp act'' each place it appears and inserting ``food 
                and nutrition act of 2008'';
                    (G) in each applicable subsection and 
                appropriations heading, by striking ``Food Stamp Act'' 
                each place it appears and inserting ``Food and 
                Nutrition Act of 2008'';
                    (H) in each applicable heading other than a title, 
                subtitle, chapter, subchapter, section, subsection, or 
                appropriations heading, by striking ``food stamp act'' 
                each place it appears and inserting ``food and 
                nutrition act of 2008'';
                    (I) in each applicable title, subtitle, chapter, 
                subchapter, and section heading, by striking ``food 
                stamp program'' each place it appears and inserting 
                ``supplemental nutrition assistance program'';
                    (J) in each applicable subsection and 
                appropriations heading, by striking ``Food Stamp 
                Program'' each place it appears and inserting 
                ``Supplemental Nutrition Assistance Program'';
                    (K) in each applicable heading other than a title, 
                subtitle, chapter, subchapter, section, subsection, or 
                appropriations heading, by striking ``food stamp 
                program'' each place it appears and inserting 
                ``supplemental nutrition assistance program'';
                    (L) in each applicable title, subtitle, chapter, 
                subchapter, and section heading, by striking ``food 
                stamps'' each place it appears and inserting 
                ``supplemental nutrition assistance program benefits'';
                    (M) in each applicable subsection and 
                appropriations heading, by striking ``Food Stamps'' 
                each place it appears and inserting ``Supplemental 
                Nutrition Assistance Program Benefits''; and
                    (N) in each applicable heading other than a title, 
                subtitle, chapter, subchapter, section, subsection, or 
                appropriations heading, by striking ``food stamps'' 
                each place it appears and inserting ``supplemental 
                nutrition assistance program benefits''.
            (2) Provisions of law.--The provisions of law referred to 
        in paragraph (1) are the following:
                    (A) The Hunger Prevention Act of 1988 (Public Law 
                100-435; 102 Stat. 1645).
                    (B) The Food Stamp Program Improvements Act of 1994 
                (Public Law 103-225; 108 Stat. 106).
                    (C) Title IV of the Farm Security and Rural 
                Investment Act of 2002 (Public Law 107-171; 116 Stat. 
                305).
                    (D) Section 2 of Public Law 103-205 (7 U.S.C. 2012 
                note).
                    (E) Section 807(b) of the Stewart B. McKinney 
                Homeless Assistance Act (7 U.S.C. 2014 note; Public Law 
                100-77).
                    (F) The Electronic Benefit Transfer 
                Interoperability and Portability Act of 2000 (Public 
                Law 106-171; 114 Stat. 3).
                    (G) Section 502(b) of the Agricultural Research, 
                Extension, and Education Reform Act of 1998 (7 U.S.C. 
                2025 note; Public Law 105-185).
                    (H) The National Agricultural Research, Extension, 
                and Teaching Policy Act of 1977 (7 U.S.C. 3101 et 
                seq.).
                    (I) The Emergency Food Assistance Act of 1983 (7 
                U.S.C. 7501 et seq.).
                    (J) The Immigration and Nationality Act (8 U.S.C. 
                1101 et seq.).
                    (K) Section 8119 of the Department of Defense 
                Appropriations Act, 1999 (10 U.S.C. 113 note; Public 
                Law 105-262).
                    (L) The Armored Car Industry Reciprocity Act of 
                1993 (15 U.S.C. 5901 et seq.).
                    (M) Title 18, United States Code.
                    (N) The Higher Education Act of 1965 (20 U.S.C. 
                1001 et seq.).
                    (O) The Internal Revenue Code of 1986.
                    (P) Section 650 of the Treasury and General 
                Government Appropriations Act, 2000 (26 U.S.C. 7801 
                note; Public Law 106-58).
                    (Q) The Wagner-Peysner Act (29 U.S.C. 49 et seq.).
                    (R) The Workforce Investment Act of 1998 (29 U.S.C. 
                2801 et seq.).
                    (S) Title 31, United States Code.
                    (T) Title 37, United States Code.
                    (U) The Public Health Service Act (42 U.S.C. 201 et 
                seq.).
                    (V) Titles II through XIX of the Social Security 
                Act (42 U.S.C. 401 et seq.).
                    (W) Section 406 of the Family Support Act of 1988 
                (Public Law 100-485; 102 Stat. 2400).
                    (X) Section 232 of the Social Security Act 
                Amendments of 1994 (42 U.S.C. 1314a).
                    (Y) The United States Housing Act of 1937 (42 
                U.S.C. 1437 et seq.).
                    (Z) The Richard B. Russell National School Lunch 
                Act (42 U.S.C. 1751 et seq.).
                    (AA) The Child Nutrition Act of 1966 (42 U.S.C. 
                1771 et seq.).
                    (BB) The Older Americans Act of 1965 (42 U.S.C. 
                3001 et seq.).
                    (CC) Section 208 of the Intergovernmental Personnel 
                Act of 1970 (42 U.S.C. 4728).
                    (DD) The Robert T. Stafford Disaster Relief and 
                Emergency Assistance Act (42 U.S.C. 5121 et seq.).
                    (EE) The Low-Income Home Energy Assistance Act of 
                1981 (42 U.S.C. 8621 et seq.).
                    (FF) Section 658K of the Child Care and Development 
                Block Grant Act of 1990 (42 U.S.C. 9858i).
                    (GG) The Alaska Native Claims Settlement Act (43 
                U.S.C. 1601 et seq.).
                    (HH) Public Law 95-348 (92 Stat. 487).
                    (II) The Agriculture and Food Act of 1981 (Public 
                Law 97-98; 95 Stat. 1213).
                    (JJ) The Disaster Assistance Act of 1988 (Public 
                Law 100-387; 102 Stat. 924).
                    (KK) The Food, Agriculture, Conservation, and Trade 
                Act of 1990 (Public Law 101-624; 104 Stat. 3359).
                    (LL) The Cranston-Gonzalez National Affordable 
                Housing Act (Public Law 101-625; 104 Stat. 4079).
                    (MM) Section 388 of the Persian Gulf Conflict 
                Supplemental Authorization and Personnel Benefits Act 
                of 1991 (Public Law 102-25; 105 Stat. 98).
                    (NN) The Food, Agriculture, Conservation, and Trade 
                Act Amendments of 1991 (Public Law 102-237; 105 Stat. 
                1818).
                    (OO) The Act of March 26, 1992 (Public Law 102-265; 
                106 Stat. 90).
                    (PP) Public Law 105-379 (112 Stat. 3399).
                    (QQ) Section 101(c) of the Emergency Supplemental 
                Act, 2000 (Public Law 106-246; 114 Stat. 528).
    (c) References.--Any reference in any Federal, State, tribal, or 
local law (including regulations) to the ``food stamp program'' 
established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et 
seq.) shall be considered to be a reference to the ``supplemental 
nutrition assistance program'' established under that Act.

                     PART II--BENEFIT IMPROVEMENTS

SEC. 4101. EXCLUSION OF CERTAIN MILITARY PAYMENTS FROM INCOME.

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

SEC. 4102. STRENGTHENING THE FOOD PURCHASING POWER OF LOW-INCOME 
              AMERICANS.

    Section 5(e)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2014(e)(1)) is amended--
            (1) in subparagraph (A)(ii), by striking ``not less than 
        $134'' and all that follows through the end of the clause and 
        inserting the following: ``not less than--
                                    ``(I) for fiscal year 2009, $144, 
                                $246, $203, and $127, respectively; and
                                    ``(II) for fiscal year 2010 and 
                                each fiscal year thereafter, an amount 
                                that is equal to the amount from the 
                                previous fiscal year adjusted to the 
                                nearest lower dollar increment to 
                                reflect changes for the 12-month period 
                                ending on the preceding June 30 in the 
                                Consumer Price Index for All Urban 
                                Consumers published by the Bureau of 
                                Labor Statistics of the Department of 
                                Labor, for items other than food.'';
            (2) in subparagraph (B)(ii), by striking ``not less than 
        $269'' and all that follows through the end of the clause and 
        inserting the following: ``not less than--
                                    ``(I) for fiscal year 2009, $289; 
                                and
                                    ``(II) for fiscal year 2010 and 
                                each fiscal year thereafter, an amount 
                                that is equal to the amount from the 
                                previous fiscal year adjusted to the 
                                nearest lower dollar increment to 
                                reflect changes for the 12-month period 
                                ending on the preceding June 30 in the 
                                Consumer Price Index for All Urban 
                                Consumers published by the Bureau of 
                                Labor Statistics of the Department of 
                                Labor, for items other than food.''; 
                                and
            (3) by adding at the end the following:
                    ``(C) Requirement.--Each adjustment under 
                subparagraphs (A)(ii)(II) and (B)(ii)(II) shall be 
                based on the unrounded amount for the prior 12-month 
                period.''.

SEC. 4103. SUPPORTING WORKING FAMILIES WITH CHILD CARE EXPENSES.

    Section 5(e)(3)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2014(e)(3)(A)) is amended by striking ``, the maximum allowable level 
of which shall be $200 per month for each dependent child under 2 years 
of age and $175 per month for each other dependent,''.

SEC. 4104. ASSET INDEXATION, EDUCATION, AND RETIREMENT ACCOUNTS.

    (a) Adjusting Countable Resources for Inflation.--Section (5)(g) of 
the Food and Nutrition Act of 2008 (7 U.S.C. 2014(g)) is amended--
            (1) by striking ``(g)(1) The Secretary'' and inserting the 
        following:
    ``(g) Allowable Financial Resources.--
            ``(1) Total amount.--
                    ``(A) In general.--The Secretary''.
            (2) in subparagraph (A) (as so designated by paragraph 
        (1))--
                    (A) by inserting ``(as adjusted in accordance with 
                subparagraph (B))'' after ``$2,000''; and
                    (B) by inserting ``(as adjusted in accordance with 
                subparagraph (B))'' after ``$3,000''; and
            (3) by adding at the end the following:
                    ``(B) Adjustment for inflation.--
                            ``(i) In general.--Beginning on October 1, 
                        2008, and each October 1 thereafter, the 
                        amounts specified in subparagraph (A) shall be 
                        adjusted and rounded down to the nearest $250 
                        increment to reflect changes for the 12-month 
                        period ending the preceding June in the 
                        Consumer Price Index for All Urban Consumers 
                        published by the Bureau of Labor Statistics of 
                        the Department of Labor.
                            ``(ii) Requirement.--Each adjustment under 
                        clause (i) shall be based on the unrounded 
                        amount for the prior 12-month period.''.
    (b) Exclusion of Retirement Accounts From Allowable Financial 
Resources.--
            (1) In general.--Section 5(g)(2)(B)(v) of the Food and 
        Nutrition Act of 2008 (7 U.S.C. 2014(g)(2)(B)(v)) is amended by 
        striking ``or retirement account (including an individual 
        account)'' and inserting ``account''.
            (2) Mandatory and discretionary exclusions.--Section 5(g) 
        of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(g)) is 
        amended by adding at the end the following:
            ``(7) Exclusion of retirement accounts from allowable 
        financial resources.--
                    ``(A) Mandatory exclusions.--The Secretary shall 
                exclude from financial resources under this subsection 
                the value of--
                            ``(i) any funds in a plan, contract, or 
                        account, described in sections 401(a), 403(a), 
                        403(b), 408, 408A, 457(b), and 501(c)(18) of 
                        the Internal Revenue Code of 1986 and the value 
                        of funds in a Federal Thrift Savings Plan 
                        account as provided in section 8439 of title 5, 
                        United States Code; and
                            ``(ii) any retirement program or account 
                        included in any successor or similar provision 
                        that may be enacted and determined to be exempt 
                        from tax under the Internal Revenue Code of 
                        1986.
                    ``(B) Discretionary exclusions.--The Secretary may 
                exclude from financial resources under this subsection 
                the value of any other retirement plans, contracts, or 
                accounts (as determined by the Secretary).''.
    (c) Exclusion of Education Accounts From Allowable Financial 
Resources.--Section 5(g) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2014(g)) (as amended by subsection (b)) is amended by adding at 
the end the following:
            ``(8) Exclusion of education accounts from allowable 
        financial resources.--
                    ``(A) Mandatory exclusions.--The Secretary shall 
                exclude from financial resources under this subsection 
                the value of any funds in a qualified tuition program 
                described in section 529 of the Internal Revenue Code 
                of 1986 or in a Coverdell education savings account 
                under section 530 of that Code.
                    ``(B) Discretionary exclusions.--The Secretary may 
                exclude from financial resources under this subsection 
                the value of any other education programs, contracts, 
                or accounts (as determined by the Secretary).''.

SEC. 4105. FACILITATING SIMPLIFIED REPORTING.

    Section 6(c)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2015(c)(1)(A)) is amended--
            (1) by striking ``reporting by'' and inserting 
        ``reporting'';
            (2) in clause (i), by inserting ``for periods shorter than 
        4 months by'' before ``migrant'';
            (3) in clause (ii), by inserting ``for periods shorter than 
        4 months by'' before ``households''; and
            (4) in clause (iii), by inserting ``for periods shorter 
        than 1 year by'' before ``households''.

SEC. 4106. TRANSITIONAL BENEFITS OPTION.

    Section 11(s)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020(s)(1)) is amended--
            (1) by striking ``benefits to a household''; and inserting 
        ``benefits--
                    ``(A) to a household'';
            (2) by striking the period at the end and inserting ``; 
        or''; and
            (3) by adding at the end the following:
                    ``(B) at the option of the State, to a household 
                with children that ceases to receive cash assistance 
                under a State-funded public assistance program.''.

SEC. 4107. INCREASING THE MINIMUM BENEFIT.

    Section 8(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2017(a)) is amended by striking ``$10 per month'' and inserting ``8 
percent of the cost of the thrifty food plan for a household containing 
1 member, as determined by the Secretary under section 3, rounded to 
the nearest whole dollar increment''.

SEC. 4108. EMPLOYMENT, TRAINING, AND JOB RETENTION.

    Section 6(d)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2015(d)(4)) is amended--
            (1) in subparagraph (B)--
                    (A) by redesignating clause (vii) as clause (viii); 
                and
                    (B) by inserting after clause (vi) the following:
                            ``(vii) Programs intended to ensure job 
                        retention by providing job retention services, 
                        if the job retention services are provided for 
                        a period of not more than 90 days after an 
                        individual who received employment and training 
                        services under this paragraph gains 
                        employment.''; and
            (2) in subparagraph (F), by adding at the end the 
        following:
                            ``(iii) Any individual voluntarily electing 
                        to participate in a program under this 
                        paragraph shall not be subject to the 
                        limitations described in clauses (i) and 
                        (ii).''.

                      PART III--PROGRAM OPERATIONS

SEC. 4111. NUTRITION EDUCATION.

    (a) Authority to Provide Nutrition Education.--Section 4(a) of the 
Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)) is amended in the 
first sentence by inserting ``and, through an approved State plan, 
nutrition education'' after ``an allotment''.
    (b) Implementation.--Section 11 of the Food and Nutrition Act of 
2008 (7 U.S.C. 2020) is amended by striking subsection (f) and 
inserting the following:
    ``(f) Nutrition Education.--
            ``(1) In general.--State agencies may implement a nutrition 
        education program for individuals eligible for program benefits 
        that promotes healthy food choices consistent with the most 
        recent Dietary Guidelines for Americans published under section 
        301 of the National Nutrition Monitoring and Related Research 
        Act of 1990 (7 U.S.C. 5341).
            ``(2) Delivery of nutrition education.--State agencies may 
        deliver nutrition education directly to eligible persons or 
        through agreements with the National Institute of Food and 
        Agriculture, including through the expanded food and nutrition 
        education program under section 3(d) of the Act of May 8, 1914 
        (7 U.S.C. 343(d)), and other State and community health and 
        nutrition providers and organizations.
            ``(3) Nutrition education state plans.--
                    ``(A) In general.--A State agency that elects to 
                provide nutrition education under this subsection shall 
                submit a nutrition education State plan to the 
                Secretary for approval.
                    ``(B) Requirements.--The plan shall--
                            ``(i) identify the uses of the funding for 
                        local projects; and
                            ``(ii) conform to standards established by 
                        the Secretary through regulations or guidance.
                    ``(C) Reimbursement.--State costs for providing 
                nutrition education under this subsection shall be 
                reimbursed pursuant to section 16(a).
            ``(4) Notification.--To the maximum extent practicable, 
        State agencies shall notify applicants, participants, and 
        eligible program participants of the availability of nutrition 
        education under this subsection.''.

SEC. 4112. TECHNICAL CLARIFICATION REGARDING ELIGIBILITY.

    Section 6(k) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2015(k)) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and indenting 
        appropriately;
            (2) by striking ``No member'' and inserting the following:
            ``(1) In general.--No member''; and
            (3) by adding at the end the following:
            ``(2) Procedures.--The Secretary shall--
                    ``(A) define the terms `fleeing' and `actively 
                seeking' for purposes of this subsection; and
                    ``(B) ensure that State agencies use consistent 
                procedures established by the Secretary that disqualify 
                individuals whom law enforcement authorities are 
                actively seeking for the purpose of holding criminal 
                proceedings against the individual.''.

SEC. 4113. CLARIFICATION OF SPLIT ISSUANCE.

    Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2016(h)) is amended by striking paragraph (2) and inserting the 
following:
            ``(2) Requirements.--
                    ``(A) In general.--Any procedure established under 
                paragraph (1) shall--
                            ``(i) not reduce the allotment of any 
                        household for any period; and
                            ``(ii) ensure that no household experiences 
                        an interval between issuances of more than 40 
                        days.
                    ``(B) Multiple issuances.--The procedure may 
                include issuing benefits to a household in more than 1 
                issuance during a month only when a benefit correction 
                is necessary.''.

SEC. 4114. ACCRUAL OF BENEFITS.

    Section 7(i) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2016(i)) is amended by adding at the end the following:
            ``(12) Recovering electronic benefits.--
                    ``(A) In general.--A State agency shall establish a 
                procedure for recovering electronic benefits from the 
                account of a household due to inactivity.
                    ``(B) Benefit storage.--A State agency may store 
                recovered electronic benefits off-line in accordance 
                with subparagraph (D), if the household has not 
                accessed the account after 6 months.
                    ``(C) Benefit expunging.--A State agency shall 
                expunge benefits that have not been accessed by a 
                household after a period of 12 months.
                    ``(D) Notice.--A State agency shall--
                            ``(i) send notice to a household the 
                        benefits of which are stored under subparagraph 
                        (B); and
                            ``(ii) not later than 48 hours after 
                        request by the household, make the stored 
                        benefits available to the household.''.

SEC. 4115. ISSUANCE AND USE OF PROGRAM BENEFITS.

    (a) In General.--Section 7 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2016) is amended--
            (1) by striking the section designation and heading and all 
        that follows through ``subsection (j)) shall be'' and inserting 
        the following:

``SEC. 7. ISSUANCE AND USE OF PROGRAM BENEFITS.

    ``(a) In General.--Except as provided in subsection (i), EBT cards 
shall be'';
            (2) in subsection (b)--
                    (A) by striking ``(b) Coupons'' and inserting the 
                following:
    ``(b) Use.--Benefits''; and
                    (B) by striking the second proviso;
            (3) in subsection (c)--
                    (A) by striking ``(c) Coupons'' and inserting the 
                following:
    ``(c) Design.--
            ``(1) In general.--EBT cards'';
                    (B) in the first sentence, by striking ``and define 
                their denomination''; and
                    (C) by striking the second sentence and inserting 
                the following:
            ``(2) Prohibition.--The name of any public official shall 
        not appear on any EBT card.'';
            (4) by striking subsection (d);
            (5) in subsection (e)--
                    (A) by striking ``coupons'' each place it appears 
                and inserting ``benefits''; and
                    (B) by striking ``coupon issuers'' each place it 
                appears and inserting ``benefit issuers'';
            (6) in subsection (f)--
                    (A) by striking ``coupons'' each place it appears 
                and inserting ``benefits'';
                    (B) by striking ``coupon issuer'' and inserting 
                ``benefit issuers'';
                    (C) by striking ``including any losses'' and all 
                that follows through ``section 11(e)(20),''; and
                    (D) by striking ``and allotments'';
            (7) by striking subsection (g) and inserting the following:
    ``(g) Alternative Benefit Delivery.--
            ``(1) In general.--If the Secretary determines, in 
        consultation with the Inspector General of the Department of 
        Agriculture, that it would improve the integrity of the 
        supplemental nutrition assistance program, the Secretary shall 
        require a State agency to issue or deliver benefits using 
        alternative methods.
            ``(2) No imposition of costs.--The cost of documents or 
        systems that may be required by this subsection may not be 
        imposed upon a retail food store participating in the 
        supplemental nutrition assistance program.
            ``(3) Devaluation and termination of issuance of paper 
        coupons.--
                    ``(A) Coupon issuance.--Effective on the date of 
                enactment of the Food, Conservation, and Energy Act of 
                2008, no State shall issue any coupon, stamp, 
                certificate, or authorization card to a household that 
                receives supplemental nutrition assistance under this 
                Act.
                    ``(B) Ebt cards.--Effective beginning on the date 
                that is 1 year after the date of enactment of the Food, 
                Conservation, and Energy Act of 2008, only an EBT card 
                issued under subsection (i) shall be eligible for 
                exchange at any retail food store.
                    ``(C) De-obligation of coupons.--Coupons not 
                redeemed during the 1-year period beginning on the date 
                of enactment of the Food, Conservation, and Energy Act 
                of 2008 shall--
                            ``(i) no longer be an obligation of the 
                        Federal Government; and
                            ``(ii) not be redeemable.'';
            (8) in subsection (h)(1), by striking ``coupons'' and 
        inserting ``benefits'';
            (9) in subsection (i), by adding at the end the following:
            ``(12) Interchange fees.--No interchange fees shall apply 
        to electronic benefit transfer transactions under this 
        subsection.'';
            (10) in subsection (j)--
                    (A) in paragraph (2)(A)(ii), by striking 
                ``printing, shipping, and redeeming coupons'' and 
                inserting ``issuing and redeeming benefits''; and
                    (B) in paragraph (5), by striking ``coupon'' and 
                inserting ``benefit'';
            (11) in subsection (k)--
                    (A) by striking ``coupons in the form of'' each 
                place it appears and inserting ``program benefits in 
                the form of'';
                    (B) by striking ``a coupon issued in the form of'' 
                each place it appears and inserting ``program benefits 
                in the form of''; and
                    (C) in subparagraph (A), by striking ``subsection 
                (i)(11)(A)'' and inserting ``subsection (h)(11)(A)''; 
                and
            (12) by redesignating subsections (e) through (k) as 
        subsections (d) through (j), respectively.
    (b) Conforming Amendments.--
            (1) Section 3 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2012) is amended--
                    (A) in subsection (a), by striking ``coupons'' and 
                inserting ``benefits'';
                    (B) by striking subsection (b) and inserting the 
                following:
    ``(b) Benefit.--The term `benefit' means the value of supplemental 
nutrition assistance provided to a household by means of--
            ``(1) an electronic benefit transfer under section 7(i); or
            ``(2) other means of providing assistance, as determined by 
        the Secretary.'';
                    (C) in subsection (c), in the first sentence, by 
                striking ``authorization cards'' and inserting 
                ``benefits'';
                    (D) in subsection (d), by striking ``or access 
                device'' and all that follows through the end of the 
                subsection and inserting a period;
                    (E) in subsection (e)--
                            (i) by striking ``(e) `Coupon issuer' 
                        means'' and inserting the following:
    ``(e) Benefit Issuer.--The term `benefit issuer' means''; and
                            (ii) by striking ``coupons'' and inserting 
                        ``benefits'';
                    (F) in subsection (g)(7), by striking ``subsection 
                (r)'' and inserting ``subsection (j)'';
                    (G) in subsection (i)(5)--
                            (i) in subparagraph (B), by striking 
                        ``subsection (r)'' and inserting ``subsection 
                        (j)''; and
                            (ii) in subparagraph (D), by striking 
                        ``coupons'' and inserting ``benefits'';
                    (H) in subsection (j), by striking ``(as that term 
                is defined in subsection (p))'';
                    (I) in subsection (k)--
                            (i) in paragraph (1)(A), by striking 
                        ``subsection (u)(1)'' and inserting 
                        ``subsection (r)(1)'';
                            (ii) in paragraph (2), by striking 
                        ``subsections (g)(3), (4), (5), (7), (8), and 
                        (9) of this section'' and inserting 
                        ``paragraphs (3), (4), (5), (7), (8), and (9) 
                        of subsection (k)''; and
                            (iii) in paragraph (3), by striking 
                        ``subsection (g)(6) of this section'' and 
                        inserting ``subsection (k)(6)'';
                    (J) in subsection (t), by inserting ``, including 
                point of sale devices,'' after ``other means of 
                access'';
                    (K) in subsection (u), by striking ``(as defined in 
                subsection (g))'';
                    (L) by adding at the end the following:
    ``(v) EBT Card.--The term `EBT card' means an electronic benefit 
transfer card issued under section 7(i).''; and
                    (M) by redesignating subsections (a) through (v) as 
                subsections (b), (d), (f), (g), (e), (h), (k), (l), 
                (n), (o), (p), (q), (s), (t), (u), (v), (c), (j), (m), 
                (a), (r), and (i), respectively, and moving the 
                subsections so as to appear in alphabetical order.
            (2) Section 4(a) of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2013(a)) is amended--
                    (A) by striking ``coupons'' each place it appears 
                and inserting ``benefits''; and
                    (B) by striking ``Coupons issued'' and inserting 
                ``benefits issued''.
            (3) Section 5 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2014) is amended--
                    (A) in subsection (a), by striking ``section 
                3(i)(4)'' and inserting ``section 3(n)(4)'';
                    (B) in subsection (h)(3)(B), in the second 
                sentence, by striking ``section 7(i)'' and inserting 
                ``section 7(h)''; and
                    (C) in subsection (i)(2)(E), by striking ``, as 
                defined in section 3(i) of this Act,''.
            (4) Section 6 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2015) is amended--
                    (A) in subsection (b)(1)--
                            (i) in subparagraph (B), by striking 
                        ``coupons or authorization cards'' and 
                        inserting ``program benefits''; and
                            (ii) by striking ``coupons'' each place it 
                        appears and inserting ``benefits''; and
                    (B) in subsection (d)(4)(L), by striking ``section 
                11(e)(22)'' and inserting ``section 11(e)(19)''.
            (5) Section 8 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2017) is amended--
                    (A) in subsection (b), by striking ``, whether 
                through coupons, access devices, or otherwise''; and
                    (B) in subsections (e)(1) and (f), by striking 
                ``section 3(i)(5)'' each place it appears and inserting 
                ``section 3(n)(5)''.
            (6) Section 9 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2018) is amended--
                    (A) by striking ``coupons'' each place it appears 
                and inserting ``benefits'';
                    (B) in subsection (a)--
                            (i) in paragraph (1), by striking ``coupon 
                        business'' and inserting ``benefit 
                        transactions''; and
                            (ii) by striking paragraph (3) and 
                        inserting the following:
            ``(3) Authorization periods.--The Secretary shall establish 
        specific time periods during which authorization to accept and 
        redeem benefits shall be valid under the supplemental nutrition 
        assistance program.''; and
                    (C) in subsection (g), by striking ``section 
                3(g)(9)'' and inserting ``section 3(k)(9)''.
            (7) Section 10 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2019) is amended--
                    (A) by striking the section designation and heading 
                and all that follows through ``Regulations'' and 
                inserting the following:

``SEC. 10. REDEMPTION OF PROGRAM BENEFITS.

    ``Regulations'';
                    (B) by striking ``section 3(k)(4) of this Act'' and 
                inserting ``section 3(p)(4)'';
                    (C) by striking ``section 7(i)'' and inserting 
                ``section 7(h)''; and
                    (D) by striking ``coupons'' each place it appears 
                and inserting ``benefits''.
            (8) Section 11 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2020) is amended--
                    (A) in subsection (d)--
                            (i) by striking ``section 3(n)(1) of this 
                        Act'' each place it appears and inserting 
                        ``section 3(t)(1)''; and
                            (ii) by striking ``section 3(n)(2) of this 
                        Act'' each place it appears and inserting 
                        ``section 3(t)(2)'';
                    (B) in subsection (e)--
                            (i) in paragraph (8)(E), by striking 
                        ``paragraph (16) or (20)(B)'' and inserting 
                        ``paragraph (15) or (18)(B)'';
                            (ii) by striking paragraphs (15) and (19);
                            (iii) by redesignating paragraphs (16) 
                        through (18) and (20) through (25) as 
                        paragraphs (15) through (17) and (18) through 
                        (23), respectively; and
                            (iv) in paragraph (17) (as so 
                        redesignated), by striking ``(described in 
                        section 3(n)(1) of this Act)'' and inserting 
                        ``described in section 3(t)(1)'';
                    (C) in subsection (h), by striking ``coupon or 
                coupons'' and inserting ``benefits'';
                    (D) by striking ``coupon'' each place it appears 
                and inserting ``benefit'';
                    (E) by striking ``coupons'' each place it appears 
                and inserting ``benefits''; and
                    (F) in subsection (q), by striking ``section 
                11(e)(20)(B)'' and inserting ``subsection (e)(18)(B)''.
            (9) Section 13 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2022) is amended by striking ``coupons'' each place it 
        appears and inserting ``benefits''.
            (10) Section 15 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2024) is amended--
                    (A) in subsection (a), by striking ``coupons'' and 
                inserting ``benefits'';
                    (B) in subsection (b)(1)--
                            (i) by striking ``coupons, authorization 
                        cards, or access devices'' each place it 
                        appears and inserting ``benefits'';
                            (ii) by striking ``coupons or authorization 
                        cards'' and inserting ``benefits''; and
                            (iii) by striking ``access device'' each 
                        place it appears and inserting ``benefit'';
                    (C) in subsection (c), by striking ``coupons'' each 
                place it appears and inserting ``benefits'';
                    (D) in subsection (d), by striking ``Coupons'' and 
                inserting ``Benefits'';
                    (E) by striking subsections (e) and (f);
                    (F) by redesignating subsections (g) and (h) as 
                subsections (e) and (f), respectively; and
                    (G) in subsection (e) (as so redesignated), by 
                striking ``coupon, authorization cards or access 
                devices'' and inserting ``benefits''.
            (11) Section 16(a) of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2025(a)) is amended by striking ``coupons'' each place 
        it appears and inserting ``benefits''.
            (12) Section 17 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2026) is amended--
                    (A) in subsection (a)(2), by striking ``coupon'' 
                and inserting ``benefit'';
                    (B) in subsection (b)(1)--
                            (i) in subparagraph (B)--
                                    (I) in clause (iv)--
                                            (aa) in subclause (I), 
                                        inserting ``or otherwise 
                                        providing benefits in a form 
                                        not restricted to the purchase 
                                        of food'' after ``of cash'';
                                            (bb) in subclause 
                                        (III)(aa), by striking 
                                        ``section 3(i)'' and inserting 
                                        ``section 3(n)''; and
                                            (cc) in subclause (VII), by 
                                        striking ``section 7(j)'' and 
                                        inserting ``section 7(i)''; and
                                    (II) in clause (v)--
                                            (aa) by striking 
                                        ``countersigned food coupons or 
                                        similar''; and
                                            (bb) by striking ``food 
                                        coupons'' and inserting ``EBT 
                                        cards''; and
                            (ii) in subparagraph (C)(i)(I), by striking 
                        ``coupons'' and inserting ``EBT cards'';
                    (C) in subsection (f), by striking ``section 
                7(g)(2)'' and inserting ``section 7(f)(2)''; and
                    (D) in subsection (j), by striking ``coupon'' and 
                inserting ``benefit''.
            (13) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act 
        of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking 
        ``section 3(o)(4)'' and inserting ``section 3(u)(4)''.
            (14) Section 21 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2030) is repealed.
            (15) Section 22 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2031) is amended--
                    (A) by striking ``food coupons'' each place it 
                appears and inserting ``benefits'';
                    (B) by striking ``coupons'' each place it appears 
                and inserting ``benefits''; and
                    (C) in subsection (g)(1)(A), by striking ``coupon'' 
                and inserting ``benefits''.
            (16) Section 26(f)(3) of the Food and Nutrition Act of 2008 
        (7 U.S.C. 2035(f)(3)) is amended--
                    (A) in subparagraph (A), by striking ``subsections 
                (a) through (g)'' and inserting ``subsections (a) 
                through (f)''; and
                    (B) in subparagraph (E), by striking ``(16), (18), 
                (20), (24), and (25)'' and inserting ``(15), (17), 
                (18), (22), and (23)''.
    (c) Conforming Cross-References.--
            (1) In general.--
                    (A) Use of terms.--Each provision of law described 
                in subparagraph (B) is amended (as applicable)--
                            (i) by striking ``coupons'' each place it 
                        appears and inserting ``benefits'';
                            (ii) by striking ``coupon'' each place it 
                        appears and inserting ``benefit'';
                            (iii) by striking ``food coupons'' each 
                        place it appears and inserting ``benefits'';
                            (iv) in each section heading, by striking 
                        ``food coupons'' each place it appears and 
                        inserting ``benefits'';
                            (v) by striking ``food stamp coupon'' each 
                        place it appears and inserting ``benefit''; and
                            (vi) by striking ``food stamps'' each place 
                        it appears and inserting ``benefits''.
                    (B) Provisions of law.--The provisions of law 
                referred to in subparagraph (A) are the following:
                            (i) Section 2 of Public Law 103-205 (7 
                        U.S.C. 2012 note; 107 Stat. 2418).
                            (ii) Section 1956(c)(7)(D) of title 18, 
                        United States Code.
                            (iii) Titles II through XIX of the Social 
                        Security Act (42 U.S.C. 401 et seq.).
                            (iv) Section 401(b)(3) of the Social 
                        Security Amendments of 1972 (42 U.S.C. 1382e 
                        note; Public Law 92-603).
                            (v) The Robert T. Stafford Disaster Relief 
                        and Emergency Assistance Act (42 U.S.C. 5121 et 
                        seq.).
                            (vi) Section 802(d)(2)(A)(i)(II) of the 
                        Cranston-Gonzalez National Affordable Housing 
                        Act (42 U.S.C. 8011(d)(2)(A)(i)(II)).
            (2) Definition references.--
                    (A) Section 2 of Public Law 103-205 (7 U.S.C. 2012 
                note; 107 Stat. 2418) is amended by striking ``section 
                3(k)(1)'' and inserting ``section 3(p)(1)''.
                    (B) Section 205 of the Food Stamp Program 
                Improvements Act of 1994 (7 U.S.C. 2012 note; Public 
                Law 103-225) is amended by striking ``section 3(k) of 
                such Act (as amended by section 201)'' and inserting 
                ``section 3(p) of that Act''.
                    (C) Section 115 of the Personal Responsibility and 
                Work Opportunity Reconciliation Act of 1996 (21 U.S.C. 
                862a) is amended--
                            (i) by striking ``section 3(h)'' each place 
                        it appears and inserting ``section 3(l)''; and
                            (ii) in subsection (e)(2), by striking 
                        ``section 3(m)'' and inserting ``section 
                        3(s)''.
                    (D) Section 402(a) of the Personal Responsibility 
                and Work Opportunity Reconciliation Act of 1996 (8 
                U.S.C. 1612(a)) is amended--
                            (i) in paragraph (2)(F)(ii), by striking 
                        ``section 3(r)'' and inserting ``section 
                        3(j)''; and
                            (ii) in paragraph (3)(B), by striking 
                        ``section 3(h)'' and inserting ``section 
                        3(l)''.
                    (E) Section 3803(c)(2)(C)(vii) of title 31, United 
                States Code, is amended by striking ``section 3(h)'' 
                and inserting ``section 3(l)''.
                    (F) Section 303(d)(4) of the Social Security Act 
                (42 U.S.C. 503(d)(4)) is amended by striking ``section 
                3(n)(1)'' and inserting ``section 3(t)(1)''.
                    (G) Section 404 of the Social Security Act (42 
                U.S.C. 604) is amended by striking ``section 3(h)'' 
                each place it appears and inserting ``section 3(l)''.
                    (H) Section 531 of the Social Security Act (42 
                U.S.C. 654) is amended by striking ``section 3(h)'' 
                each place it appears and inserting ``section 3(l)''.
                    (I) Section 802(d)(2)(A)(i)(II) of the Cranston-
                Gonzalez National Affordable Housing Act (42 U.S.C. 
                8011(d)(2)(A)(i)(II)) is amended by striking ``(as 
                defined in section 3(e) of such Act)''.
    (d) References.--Any reference in any Federal, State, tribal, or 
local law (including regulations) to a ``coupon'', ``authorization 
card'', or other access device provided under the Food and Nutrition 
Act of 2008 (7 U.S.C. 2011 et seq.) shall be considered to be a 
reference to a ``benefit'' provided under that Act.

SEC. 4116. REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN.

    Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 2020) is 
amended by striking the section enumerator and heading and subsection 
(a) and inserting the following:

``SEC. 11. ADMINISTRATION.

    ``(a) State Responsibility.--
            ``(1) In general.--The State agency of each participating 
        State shall have responsibility for certifying applicant 
        households and issuing EBT cards.
            ``(2) Local administration.--The responsibility of the 
        agency of the State government shall not be affected by whether 
        the program is operated on a State-administered or county-
        administered basis, as provided under section 3(t)(1).
            ``(3) Records.--
                    ``(A) In general.--Each State agency shall keep 
                such records as may be necessary to determine whether 
                the program is being conducted in compliance with this 
                Act (including regulations issued under this Act).
                    ``(B) Inspection and audit.--Records described in 
                subparagraph (A) shall--
                            ``(i) be available for inspection and audit 
                        at any reasonable time;
                            ``(ii) subject to subsection (e)(8), be 
                        available for review in any action filed by a 
                        household to enforce any provision of this Act 
                        (including regulations issued under this Act); 
                        and
                            ``(iii) be preserved for such period of not 
                        less than 3 years as may be specified in 
                        regulations.
            ``(4) Review of major changes in program design.--
                    ``(A) In general.--The Secretary shall develop 
                standards for identifying major changes in the 
                operations of a State agency, including--
                            ``(i) large or substantially-increased 
                        numbers of low-income households that do not 
                        live in reasonable proximity to an office 
                        performing the major functions described in 
                        subsection (e);
                            ``(ii) substantial increases in reliance on 
                        automated systems for the performance of 
                        responsibilities previously performed by 
                        personnel described in subsection (e)(6)(B);
                            ``(iii) changes that potentially increase 
                        the difficulty of reporting information under 
                        subsection (e) or section 6(c); and
                            ``(iv) changes that may disproportionately 
                        increase the burdens on any of the types of 
                        households described in subsection (e)(2)(A).
                    ``(B) Notification.--If a State agency implements a 
                major change in operations, the State agency shall--
                            ``(i) notify the Secretary; and
                            ``(ii) collect such information as the 
                        Secretary shall require to identify and correct 
                        any adverse effects on program integrity or 
                        access, including access by any of the types of 
                        households described in subsection 
                        (e)(2)(A).''.

SEC. 4117. CIVIL RIGHTS COMPLIANCE.

    Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 2020) is 
amended by striking subsection (c) and inserting the following:
    ``(c) Civil Rights Compliance.--
            ``(1) In general.--In the certification of applicant 
        households for the supplemental nutrition assistance program, 
        there shall be no discrimination by reason of race, sex, 
        religious creed, national origin, or political affiliation.
            ``(2) Relation to other laws.--The administration of the 
        program by a State agency shall be consistent with the rights 
        of households under the following laws (including implementing 
        regulations):
                    ``(A) The Age Discrimination Act of 1975 (42 U.S.C. 
                6101 et seq.).
                    ``(B) Section 504 of the Rehabilitation Act of 1973 
                (29 U.S.C. 794).
                    ``(C) The Americans with Disabilities Act of 1990 
                (42 U.S.C. 12101 et seq.).
                    ``(D) Title VI of the Civil Rights Act of 1964 (42 
                U.S.C. 2000d et seq.).''.

SEC. 4118. CODIFICATION OF ACCESS RULES.

    Section 11(e)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020(e)(1)) is amended--
            (1) by striking ``shall (A) at'' and inserting ``shall--
                    ``(A) at''; and
            (2) by striking ``and (B) use'' and inserting ``and
                    ``(B) comply with regulations of the Secretary 
                requiring the use of''.

SEC. 4119. STATE OPTION FOR TELEPHONIC SIGNATURE.

    Section 11(e)(2)(C) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020(e)(2)(C)) is amended--
            (1) by striking ``(C) Nothing in this Act'' and inserting 
        the following:
                    ``(C) Electronic and automated systems.--
                            ``(i) In general.--Nothing in this Act''; 
                        and
            (2) by adding at the end the following:
                            ``(ii) State option for telephonic 
                        signature.--A State agency may establish a 
                        system by which an applicant household may sign 
                        an application through a recorded verbal assent 
                        over the telephone.
                            ``(iii) Requirements.--A system established 
                        under clause (ii) shall--
                                    ``(I) record for future reference 
                                the verbal assent of the household 
                                member and the information to which 
                                assent was given;
                                    ``(II) include effective safeguards 
                                against impersonation, identity theft, 
                                and invasions of privacy;
                                    ``(III) not deny or interfere with 
                                the right of the household to apply in 
                                writing;
                                    ``(IV) promptly provide to the 
                                household member a written copy of the 
                                completed application, with 
                                instructions for a simple procedure for 
                                correcting any errors or omissions;
                                    ``(V) comply with paragraph (1)(B);
                                    ``(VI) satisfy all requirements for 
                                a signature on an application under 
                                this Act and other laws applicable to 
                                the supplemental nutrition assistance 
                                program, with the date on which the 
                                household member provides verbal assent 
                                considered as the date of application 
                                for all purposes; and
                                    ``(VII) comply with such other 
                                standards as the Secretary may 
                                establish.''.

SEC. 4120. PRIVACY PROTECTIONS.

    Section 11(e)(8) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2020(e)(8)) is amended--
            (1) in the matter preceding subparagraph (A)--
                    (A) by striking ``limit'' and inserting 
                ``prohibit''; and
                    (B) by striking ``to persons'' and all that follows 
                through ``State programs'';
            (2) by redesignating subparagraphs (A) through (E) as 
        subparagraphs (B) through (F), respectively;
            (3) by inserting before subparagraph (B) (as so 
        redesignated) the following:
                    ``(A) the safeguards shall permit--
                            ``(i) the disclosure of such information to 
                        persons directly connected with the 
                        administration or enforcement of the provisions 
                        of this Act, regulations issued pursuant to 
                        this Act, Federal assistance programs, or 
                        federally-assisted State programs; and
                            ``(ii) the subsequent use of the 
                        information by persons described in clause (i) 
                        only for such administration or enforcement;''; 
                        and
            (4) in subparagraph (F) (as so redesignated) by inserting 
        ``or subsection (u)'' before the semicolon at the end.

SEC. 4121. PRESERVATION OF ACCESS AND PAYMENT ACCURACY.

    Section 16 of the Food and Nutrition Act of 2008 (7 U.S.C. 2025) is 
amended by striking subsection (g) and inserting the following:
    ``(g) Cost Sharing for Computerization.--
            ``(1) In general.--Except as provided in paragraphs (2) and 
        (3), the Secretary is authorized to pay to each State agency 
        the amount provided under subsection (a)(6) for the costs 
        incurred by the State agency in the planning, design, 
        development, or installation of 1 or more automatic data 
        processing and information retrieval systems that the Secretary 
        determines--
                    ``(A) would assist in meeting the requirements of 
                this Act;
                    ``(B) meet such conditions as the Secretary 
                prescribes;
                    ``(C) are likely to provide more efficient and 
                effective administration of the supplemental nutrition 
                assistance program;
                    ``(D) would be compatible with other systems used 
                in the administration of State programs, including the 
                program funded under part A of title IV of the Social 
                Security Act (42 U.S.C. 601 et seq.);
                    ``(E) would be tested adequately before and after 
                implementation, including through pilot projects in 
                limited areas for major systems changes as determined 
                under rules promulgated by the Secretary, data from 
                which shall be thoroughly evaluated before the 
                Secretary approves the system to be implemented more 
                broadly; and
                    ``(F) would be operated in accordance with an 
                adequate plan for--
                            ``(i) continuous updating to reflect 
                        changed policy and circumstances; and
                            ``(ii) testing the effect of the system on 
                        access for eligible households and on payment 
                        accuracy.
            ``(2) Limitation.--The Secretary shall not make payments to 
        a State agency under paragraph (1) to the extent that the State 
        agency--
                    ``(A) is reimbursed for the costs under any other 
                Federal program; or
                    ``(B) uses the systems for purposes not connected 
                with the supplemental nutrition assistance program.''.

SEC. 4122. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.

    Section 16(h)(1)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2025(h)(1)(A)) is amended in subparagraph (A), by striking ``to remain 
available until expended'' and inserting ``to remain available for 15 
months''.

                       PART IV--PROGRAM INTEGRITY

SEC. 4131. ELIGIBILITY DISQUALIFICATION.

    Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C. 2015) is 
amended by adding at the end the following:
    ``(p) Disqualification for Obtaining Cash by Destroying Food and 
Collecting Deposits.--Subject to any requirements established by the 
Secretary, any person who has been found by a State or Federal court or 
administrative agency in a hearing under subsection (b) to have 
intentionally obtained cash by purchasing products with supplemental 
nutrition assistance program benefits that have containers that require 
return deposits, discarding the product, and returning the container 
for the deposit amount shall be ineligible for benefits under this Act 
for such period of time as the Secretary shall prescribe by regulation.
    ``(q) Disqualification for Sale of Food Purchased With Supplemental 
Nutrition Assistance Program Benefits.--Subject to any requirements 
established by the Secretary, any person who has been found by a State 
or Federal court or administrative agency in a hearing under subsection 
(b) to have intentionally sold any food that was purchased using 
supplemental nutrition assistance program benefits shall be ineligible 
for benefits under this Act for such period of time as the Secretary 
shall prescribe by regulation.''.

SEC. 4132. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD STORES 
              AND WHOLESALE FOOD CONCERNS.

    Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C. 2021) is 
amended--
            (1) by striking the section designation and heading and all 
        that follows through the end of subsection (a) and inserting 
        the following:

``SEC. 12. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL FOOD STORES 
              AND WHOLESALE FOOD CONCERNS.

    ``(a) Disqualification.--
            ``(1) In general.--An approved retail food store or 
        wholesale food concern that violates a provision of this Act or 
        a regulation under this Act may be--
                    ``(A) disqualified for a specified period of time 
                from further participation in the supplemental 
                nutrition assistance program;
                    ``(B) assessed a civil penalty of up to $100,000 
                for each violation; or
                    ``(C) both.
            ``(2) Regulations.--Regulations promulgated under this Act 
        shall provide criteria for the finding of a violation of, the 
        suspension or disqualification of and the assessment of a civil 
        penalty against a retail food store or wholesale food concern 
        on the basis of evidence that may include facts established 
        through on-site investigations, inconsistent redemption data, 
        or evidence obtained through a transaction report under an 
        electronic benefit transfer system.'';
            (2) in subsection (b)--
                    (A) by striking ``(b) Disqualification'' and 
                inserting the following:
    ``(b) Period of Disqualification.--Subject to subsection (c), a 
disqualification'';
                    (B) in paragraph (1), by striking ``of no less than 
                six months nor more than five years'' and inserting 
                ``not to exceed 5 years'';
                    (C) in paragraph (2), by striking ``of no less than 
                twelve months nor more than ten years'' and inserting 
                ``not to exceed 10 years'';
                    (D) in paragraph (3)(B)--
                            (i) by inserting ``or a finding of the 
                        unauthorized redemption, use, transfer, 
                        acquisition, alteration, or possession of EBT 
                        cards'' after ``concern'' the first place it 
                        appears; and
                            (ii) by striking ``civil money penalties'' 
                        and inserting ``civil penalties''; and
                    (E) by striking ``civil money penalty'' each place 
                it appears and inserting ``civil penalty'';
            (3) in subsection (c)--
                    (A) by striking ``(c) The action'' and inserting 
                the following:
    ``(c) Civil Penalty and Review of Disqualification and Penalty 
Determinations.--
            ``(1) Civil penalty.--In addition to a disqualification 
        under this section, the Secretary may assess a civil penalty in 
        an amount not to exceed $100,000 for each violation.
            ``(2) Review.--The action''; and
                    (B) in paragraph (2) (as designated by subparagraph 
                (A)), by striking ``civil money penalty'' and inserting 
                ``civil penalty'';
            (4) in subsection (d)--
                    (A) by striking ``(d)'' and all that follows 
                through ``. The Secretary shall'' and inserting the 
                following:
    ``(d) Conditions of Authorization.--
            ``(1) In general.--As a condition of authorization to 
        accept and redeem benefits, the Secretary may require a retail 
        food store or wholesale food concern that, pursuant to 
        subsection (a), has been disqualified for more than 180 days, 
        or has been subjected to a civil penalty in lieu of a 
        disqualification period of more than 180 days, to furnish a 
        collateral bond or irrevocable letter of credit for a period of 
        not more than 5 years to cover the value of benefits that the 
        store or concern may in the future accept and redeem in 
        violation of this Act.
            ``(2) Collateral.--The Secretary also may require a retail 
        food store or wholesale food concern that has been sanctioned 
        for a violation and incurs a subsequent sanction regardless of 
        the length of the disqualification period to submit a 
        collateral bond or irrevocable letter of credit.
            ``(3) Bond requirements.--The Secretary shall'';
                    (B) by striking ``If the Secretary finds'' and 
                inserting the following
            ``(4) Forfeiture.--If the Secretary finds''; and
                    (C) by striking ``Such store or concern'' and 
                inserting the following:
            ``(5) Hearing.--A store or concern described in paragraph 
        (4)'';
            (5) in subsection (e), by striking ``civil money penalty'' 
        each place it appears and inserting ``civil penalty''; and
            (6) by adding at the end the following:
    ``(h) Flagrant Violations.--
            ``(1) In general.--The Secretary, in consultation with the 
        Inspector General of the Department of Agriculture, shall 
        establish procedures under which the processing of program 
        benefit redemptions for a retail food store or wholesale food 
        concern may be immediately suspended pending administrative 
        action to disqualify the retail food store or wholesale food 
        concern.
            ``(2) Requirements.--Under the procedures described in 
        paragraph (1), if the Secretary, in consultation with the 
        Inspector General, determines that a retail food store or 
        wholesale food concern is engaged in flagrant violations of 
        this Act (including regulations promulgated under this Act), 
        unsettled program benefits that have been redeemed by the 
        retail food store or wholesale food concern--
                    ``(A) may be suspended; and
                    ``(B)(i) if the program disqualification is upheld, 
                may be subject to forfeiture pursuant to section 15(g); 
                or
                    ``(ii) if the program disqualification is not 
                upheld, shall be released to the retail food store or 
                wholesale food concern.
            ``(3) No liability for interest.--The Secretary shall not 
        be liable for the value of any interest on funds suspended 
        under this subsection.''.

SEC. 4133. MAJOR SYSTEMS FAILURES.

    Section 13(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2022(b)) is amended by adding at the end the following:
            ``(5) Overissuances caused by systemic state errors.--
                    ``(A) In general.--If the Secretary determines that 
                a State agency overissued benefits to a substantial 
                number of households in a fiscal year as a result of a 
                major systemic error by the State agency, as defined by 
                the Secretary, the Secretary may prohibit the State 
                agency from collecting these overissuances from some or 
                all households.
                    ``(B) Procedures.--
                            ``(i) Information reporting by states.--
                        Every State agency shall provide to the 
                        Secretary all information requested by the 
                        Secretary concerning the issuance of benefits 
                        to households by the State agency in the 
                        applicable fiscal year.
                            ``(ii) Final determination.--After 
                        reviewing relevant information provided by a 
                        State agency, the Secretary shall make a final 
                        determination--
                                    ``(I) whether the State agency 
                                overissued benefits to a substantial 
                                number of households as a result of a 
                                systemic error in the applicable fiscal 
                                year; and
                                    ``(II) as to the amount of the 
                                overissuance in the applicable fiscal 
                                year for which the State agency is 
                                liable.
                            ``(iii) Establishing a claim.--Upon 
                        determining under clause (ii) that a State 
                        agency has overissued benefits to households 
                        due to a major systemic error determined under 
                        subparagraph (A), the Secretary shall establish 
                        a claim against the State agency equal to the 
                        value of the overissuance caused by the 
                        systemic error.
                            ``(iv) Administrative and judicial 
                        review.--Administrative and judicial review, as 
                        provided in section 14, shall apply to the 
                        final determinations by the Secretary under 
                        clause (ii).
                            ``(v) Remission to the secretary.--
                                    ``(I) Determination not appealed.--
                                If the determination of the Secretary 
                                under clause (ii) is not appealed, the 
                                State agency shall, as soon as 
                                practicable, remit to the Secretary the 
                                dollar amount specified in the claim 
                                under clause (iii).
                                    ``(II) Determination appealed.--If 
                                the determination of the Secretary 
                                under clause (ii) is appealed, upon 
                                completion of administrative and 
                                judicial review under clause (iv), and 
                                a finding of liability on the part of 
                                the State, the appealing State agency 
                                shall, as soon as practicable, remit to 
                                the Secretary a dollar amount subject 
                                to the finding made in the 
                                administrative and judicial review.
                            ``(vi) Alternative method of collection.--
                                    ``(I) In general.--If a State 
                                agency fails to make a payment under 
                                clause (v) within a reasonable period 
                                of time, as determined by the 
                                Secretary, the Secretary may reduce any 
                                amount due to the State agency under 
                                any other provision of this Act by the 
                                amount due.
                                    ``(II) Accrual of interest.--During 
                                the period of time determined by the 
                                Secretary to be reasonable under 
                                subclause (I), interest in the amount 
                                owed shall not accrue.
                            ``(vii) Limitation.--Any liability amount 
                        established under section 16(c)(1)(C) shall be 
                        reduced by the amount of the claim established 
                        under this subparagraph.''.

                         PART V--MISCELLANEOUS

SEC. 4141. PILOT PROJECTS TO EVALUATE HEALTH AND NUTRITION PROMOTION IN 
              THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.

    Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 2026) is 
amended by adding at the end the following:
    ``(k) Pilot Projects to Evaluate Health and Nutrition Promotion in 
the Supplemental Nutrition Assistance Program.--
            ``(1) In general.--The Secretary shall carry out, under 
        such terms and conditions as the Secretary considers to be 
        appropriate, pilot projects to develop and test methods--
                    ``(A) of using the supplemental nutrition 
                assistance program to improve the dietary and health 
                status of households eligible for or participating in 
                the supplemental nutrition assistance program; and
                    ``(B) to reduce overweight, obesity (including 
                childhood obesity), and associated co-morbidities in 
                the United States.
            ``(2) Grants.--
                    ``(A) In general.--In carrying out this subsection, 
                the Secretary may enter into competitively awarded 
                contracts or cooperative agreements with, or provide 
                grants to, public or private organizations or agencies 
                (as defined by the Secretary), for use in accordance 
                with projects that meet the strategy goals of this 
                subsection.
                    ``(B) Application.--To be eligible to receive a 
                contract, cooperative agreement, or grant under this 
                paragraph, an organization shall submit to the 
                Secretary an application at such time, in such manner, 
                and containing such information as the Secretary may 
                require.
                    ``(C) Selection criteria.--Pilot projects shall be 
                evaluated against publicly disseminated criteria that 
                may include--
                            ``(i) identification of a low-income target 
                        audience that corresponds to individuals living 
                        in households with incomes at or below 185 
                        percent of the poverty level;
                            ``(ii) incorporation of a scientifically 
                        based strategy that is designed to improve diet 
                        quality through more healthful food purchases, 
                        preparation, or consumption;
                            ``(iii) a commitment to a pilot project 
                        that allows for a rigorous outcome evaluation, 
                        including data collection;
                            ``(iv) strategies to improve the 
                        nutritional value of food served during school 
                        hours and during after-school hours;
                            ``(v) innovative ways to provide 
                        significant improvement to the health and 
                        wellness of children;
                            ``(vi) other criteria, as determined by the 
                        Secretary.
                    ``(D) Use of funds.--Funds provided under this 
                paragraph shall not be used for any project that limits 
                the use of benefits under this Act.
            ``(3) Projects.--Pilot projects carried out under paragraph 
        (1) may include projects to determine whether healthier food 
        purchases by and healthier diets among households participating 
        in the supplemental nutrition assistance program result from 
        projects that--
                    ``(A) increase the supplemental nutrition 
                assistance purchasing power of the participating 
                households by providing increased supplemental 
                nutrition assistance program benefit allotments to the 
                participating households;
                    ``(B) increase access to farmers markets by 
                participating households through the electronic 
                redemption of supplemental nutrition assistance program 
                benefits at farmers' markets;
                    ``(C) provide incentives to authorized supplemental 
                nutrition assistance program retailers to increase the 
                availability of healthy foods to participating 
                households;
                    ``(D) subject authorized supplemental nutrition 
                assistance program retailers to stricter retailer 
                requirements with respect to carrying and stocking 
                healthful foods;
                    ``(E) provide incentives at the point of purchase 
                to encourage households participating in the 
                supplemental nutrition assistance program to purchase 
                fruits, vegetables, or other healthful foods; or
                    ``(F) provide to participating households 
                integrated communication and education programs, 
                including the provision of funding for a portion of a 
                school-based nutrition coordinator to implement a broad 
                nutrition action plan and parent nutrition education 
                programs in elementary schools, separately or in 
                combination with pilot projects carried out under 
                subparagraphs (A) through (E).
            ``(4) Evaluation and reporting.--
                    ``(A) Evaluation.--
                            ``(i) Independent evaluation.--
                                    ``(I) In general.--The Secretary 
                                shall provide for an independent 
                                evaluation of projects selected under 
                                this subsection that measures the 
                                impact of the pilot program on health 
                                and nutrition as described in paragraph 
                                (1).
                                    ``(II) Requirement.--The 
                                independent evaluation under subclause 
                                (I) shall use rigorous methodologies, 
                                particularly random assignment or other 
                                methods that are capable of producing 
                                scientifically valid information 
                                regarding which activities are 
                                effective.
                            ``(ii) Costs.--The Secretary may use funds 
                        provided to carry out this section to pay costs 
                        associated with monitoring and evaluating each 
                        pilot project.
                    ``(B) Reporting.--Not later than 90 days after the 
                last day of fiscal year 2009 and each fiscal year 
                thereafter until the completion of the last evaluation 
                under subparagraph (A), the Secretary shall submit to 
                the Committee on Agriculture of the House of 
                Representatives and the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate a report that 
                includes a description of--
                            ``(i) the status of each pilot project;
                            ``(ii) the results of the evaluation 
                        completed during the previous fiscal year; and
                            ``(iii) to the maximum extent practicable--
                                    ``(I) the impact of the pilot 
                                project on appropriate health, 
                                nutrition, and associated behavioral 
                                outcomes among households participating 
                                in the pilot project;
                                    ``(II) baseline information 
                                relevant to the stated goals and 
                                desired outcomes of the pilot project; 
                                and
                                    ``(III) equivalent information 
                                about similar or identical measures 
                                among control or comparison groups that 
                                did not participate in the pilot 
                                project.
                    ``(C) Public dissemination.--In addition to the 
                reporting requirements under subparagraph (B), 
                evaluation results shall be shared broadly to inform 
                policy makers, service providers, other partners, and 
                the public in order to promote wide use of successful 
                strategies.
            ``(5) Funding.--
                    ``(A) Authorization of appropriations.--There are 
                authorized to be appropriated such sums as are 
                necessary to carry out this section for each of fiscal 
                years 2008 through 2012.
                    ``(B) Mandatory funding.--Out of any funds made 
                available under section 18, on October 1, 2008, the 
                Secretary shall make available $20,000,000 to carry out 
                a project described in paragraph (3)(E), to remain 
                available until expended.''.

SEC. 4142. STUDY ON COMPARABLE ACCESS TO SUPPLEMENTAL NUTRITION 
              ASSISTANCE FOR PUERTO RICO.

    (a) In General.--The Secretary shall carry out a study of the 
feasibility and effects of including the Commonwealth of Puerto Rico in 
the definition of the term ``State'' under section 3 of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2012), in lieu of providing block 
grants under section 19 of that Act (7 U.S.C. 2028).
    (b) Inclusions.--The study shall include--
            (1) an assessment of the administrative, financial 
        management, and other changes that would be necessary for the 
        Commonwealth to establish a comparable supplemental nutrition 
        assistance program, including compliance with appropriate 
        program rules under the Food and Nutrition Act of 2008 (7 
        U.S.C. 2011 et seq.), such as--
                    (A) benefit levels under section 3(u) of that Act 
                (7 U.S.C. 2012(u));
                    (B) income eligibility standards under sections 
                5(c) and 6 of that Act (7 U.S.C. 2014(c), 2015); and
                    (C) deduction levels under section 5(e) of that Act 
                (7 U.S.C. 2014(e));
            (2) an estimate of the impact on Federal and Commonwealth 
        benefit and administrative costs;
            (3) an assessment of the impact of the program on low-
        income Puerto Ricans, as compared to the program under section 
        19 of that Act (7 U.S.C. 2028); and
            (4) such other matters as the Secretary considers to be 
        appropriate.
    (c) Report.--Not later than 2 years after the date of enactment of 
this Act, the Secretary shall submit to the Committee on Agriculture of 
the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report that describes the 
results of the study conducted under this section.
    (d) Funding.--
            (1) In general.--On October 1, 2008, out of any funds in 
        the Treasury not otherwise appropriated, the Secretary of the 
        Treasury shall transfer to the Secretary to carry out this 
        section $1,000,000, to remain available until expended.
            (2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.

                 Subtitle B--Food Distribution Programs

               PART I--EMERGENCY FOOD ASSISTANCE PROGRAM

SEC. 4201. EMERGENCY FOOD ASSISTANCE.

    (a) Purchase of Commodities.--Section 27(a) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended by -
            (1) by striking ``(a) Purchase of Commodities'' and all 
        that follows through ``$140,000,000 of'' and inserting the 
        following:
    ``(a) Purchase of Commodities.--
            ``(1) In general.--From amounts made available to carry out 
        this Act, for each of the fiscal years 2008 through 2012, the 
        Secretary shall purchase a dollar amount described in paragraph 
        (2) of''; and
            (2) by adding at the end the following:
            ``(2) Amounts.--The Secretary shall use to carry out 
        paragraph (1)--
                    ``(A) for fiscal year 2008, $190,000,000;
                    ``(B) for fiscal year 2009, $250,000,000; and
                    ``(C) for each of fiscal years 2010 through 2012, 
                the dollar amount of commodities specified in 
                subparagraph (B) adjusted by the percentage by which 
                the thrifty food plan has been adjusted under section 
                3(u)(4) between June 30, 2008, and June 30 of the 
                immediately preceding fiscal year.''.
    (b) State Plans.--Section 202A of the Emergency Food Assistance Act 
of 1983 (7 U.S.C. 7503) is amended by striking subsection (a) and 
inserting the following:
    ``(a) Plans.--
            ``(1) In general.--To receive commodities under this Act, a 
        State shall submit to the Secretary an operation and 
        administration plan for the provision of benefits under this 
        Act.
            ``(2) Updates.--A State shall submit to the Secretary for 
        approval any amendment to a plan submitted under paragraph (1) 
        in any case in which the State proposes to make a change to the 
        operation or administration of a program described in the 
        plan.''.
    (c) Authorization and Appropriations.--Section 204(a)(1) of the 
Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) is amended 
in the first sentence--
            (1) by striking ``$60,000,000'' and inserting 
        ``$100,000,000''; and
            (2) by inserting ``and donated wild game'' before the 
        period at the end.

SEC. 4202. EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS.

    The Emergency Food Assistance Act of 1983 is amended by inserting 
after section 208 (7 U.S.C. 7511) the following:

``SEC. 209. EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS.

    ``(a) Definition of Eligible Entity.--In this section, the term 
`eligible entity' means an emergency feeding organization.
    ``(b) Program Authorized.--
            ``(1) In general.--The Secretary shall use funds made 
        available under subsection (d) to make grants to eligible 
        entities to pay the costs of an activity described in 
        subsection (c).
            ``(2) Rural preference.--The Secretary shall use not less 
        than 50 percent of the funds described in paragraph (1) for a 
        fiscal year to make grants to eligible entities that serve 
        predominantly rural communities for the purposes of--
                    ``(A) expanding the capacity and infrastructure of 
                food banks, State-wide food bank associations, and food 
                bank collaboratives that operate in rural areas; and
                    ``(B) improving the capacity of the food banks to 
                procure, receive, store, distribute, track, and deliver 
                time-sensitive or perishable food products.
    ``(c) Use of Funds.--An eligible entity shall use a grant received 
under this section for any fiscal year to carry out activities of the 
eligible entity, including--
            ``(1) the development and maintenance of a computerized 
        system for the tracking of time-sensitive food products;
            ``(2) capital, infrastructure, and operating costs 
        associated with the collection, storage, distribution, and 
        transportation of time-sensitive and perishable food products;
            ``(3) improving the security and diversity of the emergency 
        food distribution and recovery systems of the United States 
        through the support of small or mid-size farms and ranches, 
        fisheries, and aquaculture, and donations from local food 
        producers and manufacturers to persons in need;
            ``(4) providing recovered foods to food banks and similar 
        nonprofit emergency food providers to reduce hunger in the 
        United States;
            ``(5) improving the identification of--
                    ``(A) potential providers of donated foods;
                    ``(B) potential nonprofit emergency food providers; 
                and
                    ``(C) persons in need of emergency food assistance 
                in rural areas; and
            ``(6) constructing, expanding, or repairing a facility or 
        equipment to support hunger relief agencies in the community.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $15,000,000 for each of fiscal 
years 2008 through 2012.''.

       PART II--FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS

SEC. 4211. ASSESSING THE NUTRITIONAL VALUE OF THE FDPIR FOOD PACKAGE.

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

             PART III--COMMODITY SUPPLEMENTAL FOOD PROGRAM

SEC. 4221. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

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

           PART IV--SENIOR FARMERS' MARKET NUTRITION PROGRAM

SEC. 4231. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

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

            Subtitle C--Child Nutrition and Related Programs

SEC. 4301. STATE PERFORMANCE ON ENROLLING CHILDREN RECEIVING PROGRAM 
              BENEFITS FOR FREE SCHOOL MEALS.

    (a) In General.--Not later than December 31, 2008 and June 30 of 
each year thereafter, the Secretary shall submit to the Committees on 
Agriculture and Education and Labor of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the Senate a 
report that assesses the effectiveness of each State in enrolling 
school-aged children in households receiving program benefits under the 
Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) (referred to in 
this section as ``program benefits'') for free school meals using 
direct certification.
    (b) Specific Measures.--The assessment of the Secretary of the 
performance of each State shall include--
            (1) an estimate of the number of school-aged children, by 
        State, who were members of a household receiving program 
        benefits at any time in July, August, or September of the prior 
        year;
            (2) an estimate of the number of school-aged children, by 
        State, who were directly certified as eligible for free lunches 
        under the Richard B. Russell National School Lunch Act (42 
        U.S.C. 1751 et seq.), based on receipt of program benefits, as 
        of October 1 of the prior year; and
            (3) an estimate of the number of school-aged children, by 
        State, who were members of a household receiving program 
        benefits at any time in July, August, or September of the prior 
        year who were not candidates for direct certification because 
        on October 1 of the prior year the children attended a school 
        operating under the special assistance provisions of section 
        11(a)(1) of the Richard B. Russell National School Lunch Act 
        (42 U.S.C. 1759a(a)(1)) that is not operating in a base year.
    (c) Performance Innovations.--The report of the Secretary shall 
describe best practices from States with the best performance or the 
most improved performance from the previous year.

SEC. 4302. PURCHASES OF LOCALLY PRODUCED FOODS.

    Section 9(j) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1758(j)) is amended to read as follows:
    ``(j) Purchases of Locally Produced Foods.--The Secretary shall--
            ``(1) encourage institutions receiving funds under this Act 
        and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) to 
        purchase unprocessed agricultural products, both locally grown 
        and locally raised, to the maximum extent practicable and 
        appropriate;
            ``(2) advise institutions participating in a program 
        described in paragraph (1) of the policy described in that 
        paragraph and paragraph (3) and post information concerning the 
        policy on the website maintained by the Secretary; and
            ``(3) allow institutions receiving funds under this Act and 
        the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), 
        including the Department of Defense Fresh Fruit and Vegetable 
        Program, to use a geographic preference for the procurement of 
        unprocessed agricultural products, both locally grown and 
        locally raised.''.

SEC. 4303. HEALTHY FOOD EDUCATION AND PROGRAM REPLICABILITY.

    Section 18(h) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1769(h)) is amended--
            (1) in paragraph (1)(C), by inserting ``promotes healthy 
        food education in the school curriculum and'' before 
        ``incorporates'';
            (2) by redesignating paragraph (2) as paragraph (4); and
            (3) by inserting after paragraph (1) the following:
            ``(2) Administration.--In providing grants under paragraph 
        (1), the Secretary shall give priority to projects that can be 
        replicated in schools.
            ``(3) Pilot program for high-poverty schools.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Eligible program.--The term `eligible 
                        program' means--
                                    ``(I) a school-based program with 
                                hands-on vegetable gardening and 
                                nutrition education that is 
                                incorporated into the curriculum for 1 
                                or more grades at 2 or more eligible 
                                schools; or
                                    ``(II) a community-based summer 
                                program with hands-on vegetable 
                                gardening and nutrition education that 
                                is part of, or coordinated with, a 
                                summer enrichment program at 2 or more 
                                eligible schools.
                            ``(ii) Eligible school.--The term `eligible 
                        school' means a public school, at least 50 
                        percent of the students of which are eligible 
                        for free or reduced price meals under this Act.
                    ``(B) Establishment.--The Secretary shall carry out 
                a pilot program under which the Secretary shall provide 
                to nonprofit organizations or public entities in not 
                more than 5 States grants to develop and run, through 
                eligible programs, community gardens at eligible 
                schools in the States that would--
                            ``(i) be planted, cared for, and harvested 
                        by students at the eligible schools; and
                            ``(ii) teach the students participating in 
                        the community gardens about agriculture 
                        production practices and diet.
                    ``(C) Priority states.--Of the States in which 
                grantees under this paragraph are located--
                            ``(i) at least 1 State shall be among the 
                        15 largest States, as determined by the 
                        Secretary;
                            ``(ii) at least 1 State shall be among the 
                        16th to 30th largest States, as determined by 
                        the Secretary; and
                            ``(iii) at least 1 State shall be a State 
                        that is not described in clause (i) or (ii).
                    ``(D) Use of produce.--Produce from a community 
                garden provided a grant under this paragraph may be--
                            ``(i) used to supplement food provided at 
                        the eligible school;
                            ``(ii) distributed to students to bring 
                        home to the families of the students; or
                            ``(iii) donated to a local food bank or 
                        senior center nutrition program.
                    ``(E) No cost-sharing requirement.--A nonprofit 
                organization or public entity that receives a grant 
                under this paragraph shall not be required to share the 
                cost of carrying out the activities assisted under this 
                paragraph.
                    ``(F) Evaluation.--A nonprofit organization or 
                public entity that receives a grant under this 
                paragraph shall be required to cooperate in an 
                evaluation in accordance with paragraph (1)(H).''.

SEC. 4304. FRESH FRUIT AND VEGETABLE PROGRAM.

    (a) Program.--
            (1) In general.--The Richard B. Russell National School 
        Lunch Act is amended by inserting after section 18 (42 U.S.C. 
        1769) the following:

``SEC. 19. FRESH FRUIT AND VEGETABLE PROGRAM.

    ``(a) In General.--For the school year beginning July 2008 and each 
subsequent school year, the Secretary shall provide grants to States to 
carry out a program to make free fresh fruits and vegetables available 
in elementary schools (referred to in this section as the `program').
    ``(b) Program.--A school participating in the program shall make 
free fresh fruits and vegetables available to students throughout the 
school day (or at such other times as are considered appropriate by the 
Secretary) in 1 or more areas designated by the school.
    ``(c) Funding to States.--
            ``(1) Minimum grant.--Except as provided in subsection 
        (i)(2), the Secretary shall provide to each of the 50 States 
        and the District of Columbia an annual grant in an amount equal 
        to 1 percent of the funds made available for a year to carry 
        out the program.
            ``(2) Additional funding.--Of the funds remaining after 
        grants are made under paragraph (1), the Secretary shall 
        allocate additional funds to each State that is operating a 
        school lunch program under section 4 based on the proportion 
        that--
                    ``(A) the population of the State; bears to
                    ``(B) the population of the United States.
    ``(d) Selection of Schools.--
            ``(1) In general.--Except as provided in paragraph (2) of 
        this subsection and section 4304(a)(2) of the Food, 
        Conservation, and Energy Act of 2008, each year, in selecting 
        schools to participate in the program, each State shall--
                    ``(A) ensure that each school chosen to participate 
                in the program is a school--
                            ``(i) in which not less than 50 percent of 
                        the students are eligible for free or reduced 
                        price meals under this Act; and
                            ``(ii) that submits an application in 
                        accordance with subparagraph (D);
                    ``(B) to the maximum extent practicable, give the 
                highest priority to schools with the highest proportion 
                of children who are eligible for free or reduced price 
                meals under this Act;
                    ``(C) ensure that each school selected is an 
                elementary school (as defined in section 9101 of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 7801));
                    ``(D) solicit applications from interested schools 
                that include--
                            ``(i) information pertaining to the 
                        percentage of students enrolled in the school 
                        submitting the application who are eligible for 
                        free or reduced price school lunches under this 
                        Act;
                            ``(ii) a certification of support for 
                        participation in the program signed by the 
                        school food manager, the school principal, and 
                        the district superintendent (or equivalent 
                        positions, as determined by the school);
                            ``(iii) a plan for implementation of the 
                        program, including efforts to integrate 
                        activities carried out under this section with 
                        other efforts to promote sound health and 
                        nutrition, reduce overweight and obesity, or 
                        promote physical activity; and
                            ``(iv) such other information as may be 
                        requested by the Secretary; and
                    ``(E) encourage applicants to submit a plan for 
                implementation of the program that includes a 
                partnership with 1 or more entities that will provide 
                non-Federal resources (including entities representing 
                the fruit and vegetable industry).
            ``(2) Exception.--Clause (i) of paragraph (1)(A) shall not 
        apply to a State if all schools that meet the requirements of 
        that clause have been selected and the State does not have a 
        sufficient number of additional schools that meet the 
        requirement of that clause.
            ``(3) Outreach to low-income schools.--
                    ``(A) In general.--Prior to making decisions 
                regarding school participation in the program, a State 
                agency shall inform the schools within the State with 
                the highest proportion of free and reduced price meal 
                eligibility, including Native American schools, of the 
                eligibility of the schools for the program with respect 
                to priority granted to schools with the highest 
                proportion of free and reduced price eligibility under 
                paragraph (1)(B).
                    ``(B) Requirement.--In providing information to 
                schools in accordance with subparagraph (A), a State 
                agency shall inform the schools that would likely be 
                chosen to participate in the program under paragraph 
                (1)(B).
    ``(e) Notice of Availability.--If selected to participate in the 
program, a school shall widely publicize within the school the 
availability of free fresh fruits and vegetables under the program.
    ``(f) Per-Student Grant.--The per-student grant provided to a 
school under this section shall be--
            ``(1) determined by a State agency; and
            ``(2) not less than $50, nor more than $75.
    ``(g) Limitation.--To the maximum extent practicable, each State 
agency shall ensure that in making the fruits and vegetables provided 
under this section available to students, schools offer the fruits and 
vegetables separately from meals otherwise provided at the school under 
this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
    ``(h) Evaluation and Reports.--
            ``(1) In general.--The Secretary shall conduct an 
        evaluation of the program, including a determination as to 
        whether children experienced, as a result of participating in 
        the program--
                    ``(A) increased consumption of fruits and 
                vegetables;
                    ``(B) other dietary changes, such as decreased 
                consumption of less nutritious foods; and
                    ``(C) such other outcomes as are considered 
                appropriate by the Secretary.
            ``(2) Report.--Not later than September 30, 2011, the 
        Secretary shall submit to the Committee on Education and Labor 
        of the House of Representatives and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate a report 
        that describes the results of the evaluation under paragraph 
        (1).
    ``(i) Funding.--
            ``(1) In general.--Out of the funds made available under 
        subsection (b)(2)(A) of section 14222 of the Food, 
        Conservation, and Energy Act of 2008, the Secretary shall use 
        the following amounts to carry out this section:
                    ``(A) On October 1, 2008, $40,000,000.
                    ``(B) On July 1, 2009, $65,000,000.
                    ``(C) On July 1, 2010, $101,000,000.
                    ``(D) On July 1, 2011, $150,000,000.
                    ``(E) On July 1, 2012, and each July 1 thereafter, 
                the amount made available for the preceding fiscal 
                year, as adjusted to reflect changes for the 12-month 
                period ending the preceding April 30 in the Consumer 
                Price Index for All Urban Consumers published by the 
                Bureau of Labor Statistics of the Department of Labor, 
                for items other than food.
            ``(2) Maintenance of existing funding.--In allocating 
        funding made available under paragraph (1) among the States in 
        accordance with subsection (c), the Secretary shall ensure that 
        each State that received funding under section 18(f) on the day 
        before the date of enactment of the Food, Conservation, and 
        Energy Act of 2008 shall continue to receive sufficient funding 
        under this section to maintain the caseload level of the State 
        under that section as in effect on that date.
            ``(3) Evaluation funding.--On October 1, 2008, out of any 
        funds made available under subsection (b)(2)(A) of section 
        14222 of the Food, Conservation, and Energy Act of 2008, the 
        Secretary shall use to carry out the evaluation required under 
        subsection (h), $3,000,000, to remain available for obligation 
        until September 30, 2010.
            ``(4) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section any funds transferred for that purpose, without 
        further appropriation.
            ``(5) Authorization of appropriations.--In addition to any 
        other amounts made available to carry out this section, there 
        are authorized to be appropriated such sums as are necessary to 
        expand the program established under this section.
            ``(6) Administrative costs.--
                    ``(A) In general.--Of funds made available to carry 
                out this section for a fiscal year, the Secretary may 
                use not more than $500,000 for the administrative costs 
                of carrying out the program.
                    ``(B) Reservation of funds.--The Secretary shall 
                allow each State to reserve such funding as the 
                Secretary determines to be necessary to administer the 
                program in the State (with adjustments for the size of 
                the State and the grant amount), but not to exceed the 
                amount required to pay the costs of 1 full-time 
                coordinator for the program in the State.
            ``(7) Reallocation.--
                    ``(A) Among states.--The Secretary may reallocate 
                any amounts made available to carry out this section 
                that are not obligated or expended by a date determined 
                by the Secretary.
                    ``(B) Within states.--A State that receives a grant 
                under this section may reallocate any amounts made 
                available under the grant that are not obligated or 
                expended by a date determined by the Secretary.''.
            (2) Transition of existing schools.--
                    (A) Existing secondary schools.--Section 
                19(d)(1)(C) of the Richard B. Russell National School 
                Lunch Act (as amended by paragraph (1)) may be waived 
                by a State until July 1, 2010, for each secondary 
                school in the State that has been awarded funding under 
                section 18(f) of that Act (42 U.S.C. 1769(f)) for the 
                school year beginning July 1, 2008.
                    (B) School year beginning july 1, 2008.--To 
                facilitate transition from the program authorized under 
                section 18(f) of the Richard B. Russell National School 
                Lunch Act (42 U.S.C. 1769(f)) (as in effect on the day 
                before the date of enactment of this Act) to the 
                program established under section 19 of that Act (as 
                amended by paragraph (1))--
                            (i) for the school year beginning July 1, 
                        2008, the Secretary may permit any school 
                        selected for participation under section 18(f) 
                        of that Act (42 U.S.C. 1769(f)) for that school 
                        year to continue to participate under section 
                        19 of that Act until the end of that school 
                        year; and
                            (ii) funds made available under that Act 
                        for fiscal year 2009 may be used to support the 
                        participation of any schools selected to 
                        participate in the program authorized under 
                        section 18(f) of that Act (42 U.S.C. 1769(f)) 
                        (as in effect on the day before the date of 
                        enactment of this Act).
    (b) Conforming Amendments.--Section 18 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1769) is amended--
            (1) by striking subsection (f); and
            (2) by redesignating subsections (g) through (j) as 
        subsections (f) through (i), respectively.

SEC. 4305. WHOLE GRAIN PRODUCTS.

    (a) Purpose.--The purpose of this section is to encourage greater 
awareness and interest in the number and variety of whole grain 
products available to schoolchildren, as recommended by the 2005 
Dietary Guidelines for Americans.
    (b) Definition of Eligible Whole Grains and Whole Grain Products.--
In this section, the terms ``whole grains'' and ``whole grain 
products'' have the meaning given the terms by the Food and Nutrition 
Service in the HealthierUS School Challenge.
    (c) Purchase of Whole Grains and Whole Grain Products.--In addition 
to the commodities delivered under section 6 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1755), the Secretary shall 
purchase whole grains and whole grain products for use in--
            (1) the school lunch program established under the Richard 
        B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.); 
        and
            (2) the school breakfast program established by section 4 
        of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
    (d) Evaluation.--Not later than September 30, 2011, the Secretary 
shall conduct an evaluation of the activities conducted under 
subsection (c) that includes--
            (1) an evaluation of whether children participating in the 
        school lunch and breakfast programs increased their consumption 
        of whole grains;
            (2) an evaluation of which whole grains and whole grain 
        products are most acceptable for use in the school lunch and 
        breakfast programs;
            (3) any recommendations of the Secretary regarding the 
        integration of whole grain products in the school lunch and 
        breakfast programs; and
            (4) an evaluation of any other outcomes determined to be 
        appropriate by the Secretary.
    (e) Report.--As soon as practicable after the completion of the 
evaluation under subsection (d), the Secretary shall submit to the 
Committee on Agriculture, Nutrition, and Forestry of the Senate and the 
Committee on Education and Labor of the House of Representative a 
report describing the results of the evaluation.

SEC. 4306. BUY AMERICAN REQUIREMENTS.

    (a) Findings.--The Congress finds the following:
            (1) Federal law requires that commodities and products 
        purchased with Federal funds be, to the extent practicable, of 
        domestic origin.
            (2) Federal Buy American statutory requirements seek to 
        ensure that purchases made with Federal funds benefit domestic 
        producers.
            (3) The Richard B. Russell National School Lunch Act (42 
        U.S.C. 1751 et seq.) requires the use of domestic food products 
        for all meals served under the program, including food products 
        purchased with local funds.
    (b) Buy American Statutory Requirements.--The Department of 
Agriculture should undertake training, guidance, and enforcement of the 
various current Buy American statutory requirements and regulations, 
including those of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1751 et seq.).

SEC. 4307. SURVEY OF FOODS PURCHASED BY SCHOOL FOOD AUTHORITIES.

    (a) In General.--For fiscal year 2009, the Secretary shall carry 
out a nationally representative survey of the foods purchased during 
the most recent school year for which data is available by school 
authorities participating in the school lunch program established under 
the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et 
seq.).
    (b) Report.--
            (1) In general.--On completion of the survey, the Secretary 
        shall submit to the Committees on Agriculture and Education and 
        Labor of the House of Representatives and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate a report 
        that describes the results of the survey.
            (2) Interim requirement.--If the initial report required 
        under paragraph (1) is not submitted to the Committees referred 
        to in that paragraph by June 30, 2009, the Secretary shall 
        submit to the Committees an interim report that describes the 
        relevant survey data, or a sample of such data, available to 
        the Secretary as of that date.
    (c) Funding.--Of the funds of the Commodity Credit Corporation, the 
Secretary shall use to carry out this section not more than $3,000,000.

                       Subtitle D--Miscellaneous

SEC. 4401. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY LELAND 
              INTERNATIONAL HUNGER FELLOWS.

    Section 4404 of the Farm Security and Rural Investment Act of 2002 
(2 U.S.C. 1161) is amended to read as follows:

``SEC. 4404. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY LELAND 
              INTERNATIONAL HUNGER FELLOWS.

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

SEC. 4402. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

    Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C. 2034) is 
amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Definitions.--In this section:
            ``(1) Community food project.--In this section, the term 
        `community food project' means a community-based project that--
                    ``(A) requires a 1-time contribution of Federal 
                assistance to become self-sustaining; and
                    ``(B) is designed--
                            ``(i)(I) to meet the food needs of low-
                        income individuals;
                            ``(II) to increase the self-reliance of 
                        communities in providing for the food needs of 
                        the communities; and
                            ``(III) to promote comprehensive responses 
                        to local food, farm, and nutrition issues; or
                            ``(ii) to meet specific State, local, or 
                        neighborhood food and agricultural needs, 
                        including needs relating to--
                                    ``(I) infrastructure improvement 
                                and development;
                                    ``(II) planning for long-term 
                                solutions; or
                                    ``(III) the creation of innovative 
                                marketing activities that mutually 
                                benefit agricultural producers and low-
                                income consumers.
            ``(2) Center.--The term `Center' means the healthy urban 
        food enterprise development center established under subsection 
        (h).
            ``(3) Underserved community.--The term `underserved 
        community' means a community (including an urban or rural 
        community or an Indian tribe) that, as determined by the 
        Secretary, has--
                    ``(A) limited access to affordable, healthy foods, 
                including fresh fruits and vegetables;
                    ``(B) a high incidence of a diet-related disease 
                (including obesity) as compared to the national 
                average;
                    ``(C) a high rate of hunger or food insecurity; or
                    ``(D) severe or persistent poverty.'';
            (2) by redesignating subsection (h) as subsection (i); and
            (3) by inserting after subsection (g) the following:
    ``(h) Healthy Urban Food Enterprise Development Center.--
            ``(1) Definition of eligible entity.--In this subsection, 
        the term `eligible entity' means--
                    ``(A) a nonprofit organization;
                    ``(B) a cooperative;
                    ``(C) a commercial entity;
                    ``(D) an agricultural producer;
                    ``(E) an academic institution;
                    ``(F) an individual; and
                    ``(G) such other entities as the Secretary may 
                designate.
            ``(2) Establishment.--The Secretary shall offer to provide 
        a grant to a nonprofit organization to establish and support a 
        healthy urban food enterprise development center to carry out 
        the purpose described in paragraph (3).
            ``(3) Purpose.--The purpose of the Center is to increase 
        access to healthy affordable foods, including locally produced 
        agricultural products, to underserved communities.
            ``(4) Activities.--
                    ``(A) Technical assistance and information.--The 
                Center shall collect, develop, and provide technical 
                assistance and information to small and medium-sized 
                agricultural producers, food wholesalers and retailers, 
                schools, and other individuals and entities regarding 
                best practices and the availability of assistance for 
                aggregating, storing, processing, and marketing locally 
                produced agricultural products and increasing the 
                availability of such products in underserved 
                communities.
                    ``(B) Authority to subgrant.--The Center may 
                provide subgrants to eligible entities--
                            ``(i) to carry out feasibility studies to 
                        establish businesses for the purpose described 
                        in paragraph (3); and
                            ``(ii) to establish and otherwise assist 
                        enterprises that process, distribute, 
                        aggregate, store, and market healthy affordable 
                        foods.
            ``(5) Priority.--In providing technical assistance and 
        grants under paragraph (4), the Center shall give priority to 
        applications that include projects--
                    ``(A) to benefit underserved communities; and
                    ``(B) to develop market opportunities for small and 
                mid-sized farm and ranch operations.
            ``(6) Report.--For each fiscal year for which the nonprofit 
        organization described in paragraph (2) receives funds, the 
        organization shall submit to the Secretary a report describing 
        the activities carried out in the preceding fiscal year, 
        including--
                    ``(A) a description of technical assistance 
                provided by the Center;
                    ``(B) the total number and a description of the 
                subgrants provided under paragraph (4)(B);
                    ``(C) a complete listing of cases in which the 
                activities of the Center have resulted in increased 
                access to healthy, affordable foods, such as fresh 
                fruit and vegetables, particularly for school-aged 
                children and individuals in low-income communities; and
                    ``(D) a determination of whether the activities 
                identified in subparagraph (C) are sustained during the 
                years following the initial provision of technical 
                assistance and subgrants under this section.
            ``(7) Competitive award process.--The Secretary shall use a 
        competitive process to award funds to establish the Center.
            ``(8) Limitation on administrative expenses.--Not more than 
        10 percent of the total amount allocated for this subsection in 
        a given fiscal year may be used for administrative expenses.
            ``(9) Funding.--
                    ``(A) In general.--Out of any funds in the Treasury 
                not otherwise appropriated, the Secretary of the 
                Treasury shall transfer to the Secretary to carry out 
                this subsection $1,000,000 for each of fiscal years 
                2009 through 2011.
                    ``(B) Additional funding.--There is authorized to 
                be appropriated $2,000,000 to carry out this subsection 
                for fiscal year 2012.''.

SEC. 4403. JOINT NUTRITION MONITORING AND RELATED RESEARCH ACTIVITIES.

    The Secretary and the Secretary of Health and Human Services shall 
continue to provide jointly for national nutrition monitoring and 
related research activities carried out as of the date of enactment of 
this Act--
            (1) to collect continuous dietary, health, physical 
        activity, and diet and health knowledge data on a nationally 
        representative sample;
            (2) to periodically collect data on special at-risk 
        populations, as identified by the Secretaries;
            (3) to distribute information on health, nutrition, the 
        environment, and physical activity to the public in a timely 
        fashion;
            (4) to analyze new data that becomes available;
            (5) to continuously update food composition tables; and
            (6) to research and develop data collection methods and 
        standards.

SEC. 4404. SECTION 32 FUNDS FOR PURCHASE OF FRUITS, VEGETABLES, AND 
              NUTS TO SUPPORT DOMESTIC NUTRITION ASSISTANCE PROGRAMS.

    (a) Funding for Additional Purchases of Fruits, Vegetables, and 
Nuts.--In addition to the purchases of fruits, vegetables, and nuts 
required by section 10603 of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 612c-4), the Secretary of Agriculture shall purchase 
fruits, vegetables, and nuts for the purpose of providing nutritious 
foods for use in domestic nutrition assistance programs, using, of the 
funds made available under section 32 of the Act of August 24, 1935 (7 
U.S.C. 612c), the following amounts:
            (1) $190,000,000 for fiscal year 2008.
            (2) $193,000,000 for fiscal year 2009.
            (3) $199,000,000 for fiscal year 2010.
            (4) $203,000,000 for fiscal year 2011.
            (5) $206,000,000 for fiscal year 2012 and each fiscal year 
        thereafter.
    (b) Form of Purchases.--Fruits, vegetables, and nuts may be 
purchased under this section in the form of frozen, canned, dried, or 
fresh fruits, vegetables, and nuts.
    (c) Purchase of Fresh Fruits and Vegetables for Distribution to 
Schools and Service Institutions.--Section 10603 of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 612c-4) is amended by 
striking subsection (b) and inserting the following:
    ``(b) Purchase of Fresh Fruits and Vegetables for Distribution to 
Schools and Service Institutions.--The Secretary of Agriculture shall 
purchase fresh fruits and vegetables for distribution to schools and 
service institutions in accordance with section 6(a) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1755(a)) using, of the 
amount specified in subsection (a), not less than $50,000,000 for each 
of fiscal years 2008 through 2012.''.

SEC. 4405. HUNGER-FREE COMMUNITIES.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means a 
        public food program service provider or nonprofit organization, 
        including an emergency feeding organization, that has 
        collaborated, or will collaborate, with 1 or more local partner 
        organizations to achieve at least 1 hunger-free communities 
        goal.
            (2) Emergency feeding organization.--The term ``emergency 
        feeding organization'' has the meaning given the term in 
        section 201A of the Emergency Food Assistance Act of 1983 (7 
        U.S.C. 7501).
            (3) Hunger-free communities goal.--The term ``hunger-free 
        communities goal'' means any of the 14 goals described in the 
        H. Con. Res. 302 (102nd Congress).
    (b) Hunger-Free Communities Collaborative Grants.--
            (1) Program.--
                    (A) In general.--The Secretary shall use not more 
                than 50 percent of any funds made available under 
                subsection (e) to make grants to eligible entities to 
                pay the Federal share of the costs of an activity 
                described in paragraph (2).
                    (B) Federal share.--The Federal share of the cost 
                of carrying out an activity under this subsection shall 
                not exceed 80 percent.
                    (C) Non-federal share.--
                            (i) Calculation.--The non-Federal share of 
                        the cost of an activity under this subsection 
                        may be provided in cash or fairly evaluated in-
                        kind contributions, including facilities, 
                        equipment, or services.
                            (ii) Sources.--Any entity may provide the 
                        non-Federal share of the cost of an activity 
                        under this subsection through a State 
                        government, a local government, or a private 
                        source.
            (2) Use of funds.--An eligible entity in a community shall 
        use a grant received under this subsection for any fiscal year 
        for hunger relief activities, including--
                    (A) meeting the immediate needs of people who 
                experience hunger in the community served by the 
                eligible entity by--
                            (i) distributing food;
                            (ii) providing community outreach to assist 
                        in participation in federally assisted 
                        nutrition programs, including--
                                    (I) the school breakfast program 
                                established by section 4 of the Child 
                                Nutrition Act of 1966 (42 U.S.C. 1773);
                                    (II) the school lunch program 
                                established under the Richard B. 
                                Russell National School Lunch Act (42 
                                U.S.C. 1751 et seq.);
                                    (III) the summer food service 
                                program for children established under 
                                section 13 of that Act; and
                                    (IV) other Federal programs that 
                                provide food for children in child care 
                                facilities and homeless and older 
                                individuals; or
                            (iii) improving access to food as part of a 
                        comprehensive service; and
                    (B) developing new resources and strategies to help 
                reduce hunger in the community and prevent hunger in 
                the future by--
                            (i) developing creative food resources, 
                        such as community gardens, buying clubs, food 
                        cooperatives, community-owned and operated 
                        grocery stores, and farmers' markets;
                            (ii) coordinating food services with park 
                        and recreation programs and other community-
                        based outlets to reduce barriers to access; or
                            (iii) creating nutrition education programs 
                        for at-risk populations to enhance food-
                        purchasing and food-preparation skills and to 
                        heighten awareness of the connection between 
                        diet and health.
    (c) Hunger-Free Communities Infrastructure Grants.--
            (1) Program authorized.--
                    (A) In general.--The Secretary shall use not more 
                than 50 percent of any funds made available for a 
                fiscal year under subsection (e) to make grants to 
                eligible entities to pay the Federal share of the costs 
                of an activity described in paragraph (2).
                    (B) Federal share.--The Federal share of the cost 
                of carrying out an activity under this subsection shall 
                not exceed 80 percent.
            (2) Application.--
                    (A) In general.--To receive a grant under this 
                subsection, an eligible entity shall submit an 
                application at such time, in such form, and containing 
                such information as the Secretary may prescribe.
                    (B) Contents.--Each application submitted under 
                subparagraph (A) shall--
                            (i) identify any activity described in 
                        paragraph (3) that the grant will be used to 
                        fund; and
                            (ii) describe the means by which an 
                        activity identified under clause (i) will 
                        reduce hunger in the community of the eligible 
                        entity.
                    (C) Priority.--In making grants under this 
                subsection, the Secretary shall give priority to 
                eligible entities that demonstrate 2 or more of the 
                following:
                            (i) The eligible entity serves a community 
                        in which the rates of food insecurity, hunger, 
                        poverty, or unemployment are demonstrably 
                        higher than national average rates.
                            (ii) The eligible entity serves a community 
                        that has successfully carried out long-term 
                        efforts to reduce hunger in the community.
                            (iii) The eligible entity serves a 
                        community that provides public support for the 
                        efforts of the eligible entity.
                            (iv) The eligible entity is committed to 
                        achieving more than 1 hunger-free communities 
                        goal.
            (3) Use of funds.--An eligible entity shall use a grant 
        received under this subsection to construct, expand, or repair 
        a facility or equipment to support hunger relief efforts in the 
        community.
    (d) Report.--If funds are made available under subsection (e) to 
carry out this section, not later than September 30, 2012, the 
Secretary shall submit to Congress a report that describes--
            (1) each grant made under this section, including--
                    (A) a description of any activity funded; and
                    (B) the degree of success of each activity funded 
                in achieving hunger free-communities goals; and
            (2) the degree of success of all activities funded under 
        this section in achieving domestic hunger goals.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2008 through 2012.

SEC. 4406. REAUTHORIZATION OF FEDERAL FOOD ASSISTANCE PROGRAMS.

    (a) Supplemental Nutrition Assistance Program.--
            (1) Authorization of appropriations.--Section 18(a)(1) of 
        the Food and Nutrition Act of 2008 (7 U.S.C. 2027(a)(1)) is 
        amended in the first sentence by striking ``for each of the 
        fiscal years 2003 through 2007'' and inserting ``for each of 
        fiscal years 2008 through 2012''.
            (2) Grants for simple application and eligibility 
        determination systems and improved access to benefits.--Section 
        11(t)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
        2020(t)(1)) is amended by striking ``For each of fiscal years 
        2003 through 2007'' and inserting ``Subject to the availability 
        of appropriations under section 18(a), for each fiscal year''.
            (3) Funding of employment and training programs.--Section 
        16(h)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 
        2025(h)(1)) is amended--
                    (A) in subparagraph (A), by striking ``the amount 
                of--'' and all that follows through the end of the 
                subparagraph and inserting ``, $90,000,000 for each 
                fiscal year.''; and
                    (B) in subparagraph (E)(i), by striking ``for each 
                of fiscal years 2002 through 2007'' and inserting ``for 
                each fiscal year''.
            (4) Reductions in payments for administrative costs.--
        Section 16(k)(3) of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2025(k)(3)) is amended--
                    (A) in the first sentence of subparagraph (A), by 
                striking ``effective for each of fiscal years 1999 
                through 2007,''; and
                    (B) in subparagraph (B)(ii), by striking ``through 
                fiscal year 2007''.
            (5) Cash payment pilot projects.--Section 17(b)(1)(B)(vi) 
        of the Food and Nutrition Act of 2008 (7 U.S.C. 
        2026(b)(1)(B)(vi)) is amended--
                    (A) by striking ``Any pilot'' and inserting 
                ``Subject to the availability of appropriations under 
                section 18(a), any pilot''; and
                    (B) by striking ``through October 1, 2007,''.
            (6) Consolidated block grants for puerto rico and american 
        samoa.--Section 19(a)(2)(A)(ii) of the Food and Nutrition Act 
        of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking 
        ``for each of fiscal years 2004 through 2007'' and inserting 
        ``subject to the availability of appropriations under section 
        18(a), for each fiscal year thereafter''.
            (7) Assistance for community food projects.--Section 25 of 
        the Food and Nutrition Act of 2008 (7 U.S.C. 2034) is amended--
                    (A) in subsection (b)(2)(B), by striking ``for each 
                of fiscal years 1997 through 2007'' and inserting ``for 
                fiscal year 2008 and each fiscal year thereafter''; and
                    (B) in subsection (i)(4) (as redesignated by 
                section 4402), by striking ``of fiscal years 2003 
                through 2007'' and inserting ``fiscal year 
                thereafter''.
    (b) Commodity Distribution.--
            (1) Emergency food assistance.--Section 204(a)(1) of the 
        Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) is 
        amended in the first sentence by striking ``for each of the 
        fiscal years 2003 through 2007'' and inserting ``for fiscal 
        year 2008 and each fiscal year thereafter''.
            (2) Commodity distribution program.--Section 4(a) of the 
        Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c 
        note; Public Law 93-86) is amended in the first sentence by 
        striking ``years 1991 through 2007'' and inserting ``years 2008 
        through 2012''.
            (3) Commodity supplemental food program.--Section 5 of the 
        Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c 
        note; Public Law 93-86) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by striking ``each of 
                        fiscal years 2003 through 2007'' and inserting 
                        ``each of fiscal years 2008 through 2012''; and
                            (ii) in paragraph (2)(B), by striking the 
                        subparagraph designation and heading and all 
                        that follows through ``2007'' and inserting the 
                        following:
                    ``(B) Subsequent fiscal years.--For each of fiscal 
                years 2004 through 2012''; and
                    (B) in subsection (d)(2), by striking ``each of the 
                fiscal years 1991 through 2007'' and inserting ``each 
                of fiscal years 2008 through 2012''.
            (4) Distribution of surplus commodities to special 
        nutrition projects.--Section 1114(a)(2)(A) of the Agriculture 
        and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended in the 
        first sentence by striking ``Effective through September 30, 
        2007'' and inserting ``For each of fiscal years 2008 through 
        2012''.
    (c) Farm Security and Rural Investment.--
            (1) Seniors farmers' market nutrition program.--Section 
        4402 of the Farm Security and Rural Investment Act of 2002 (7 
        U.S.C. 3007) is amended by striking by striking subsection (a) 
        and inserting the following:
    ``(a) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary of Agriculture shall use to carry out and expand the 
seniors farmers' market nutrition program $20,600,000 for each of 
fiscal years 2008 through 2012.''.
            (2) Nutrition information and awareness pilot program.--
        Section 4403(f) of the Farm Security and Rural Investment Act 
        of 2002 (7 U.S.C. 3171 note; Public Law 107-171) is amended by 
        striking ``2007'' and inserting ``2012''.

SEC. 4407. EFFECTIVE AND IMPLEMENTATION DATES.

    Except as otherwise provided in this title, this title and the 
amendments made by this title take effect on October 1, 2008.

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

SEC. 5001. DIRECT LOANS.

    Section 302 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1922) is amended--
            (1) by striking the section designation and heading and all 
        that follows through ``(a) The Secretary is authorized to'' and 
        inserting the following:

``SEC. 302. PERSONS ELIGIBLE FOR REAL ESTATE LOANS.

    ``(a) In General.--The Secretary may''; and
            (2) in subsection (a)(2), by inserting ``, taking into 
        consideration all farming experience of the applicant, without 
        regard to any lapse between farming experiences'' after 
        ``farming operations''.

SEC. 5002. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

    Section 304 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1924) is amended to read as follows:

``SEC. 304. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

    ``(a) In General.--The Secretary may make or guarantee qualified 
conservation loans to eligible borrowers under this section.
    ``(b) Definitions.--In this section:
            ``(1) Qualified conservation loan.--The term `qualified 
        conservation loan' means a loan, the proceeds of which are used 
        to cover the costs to the borrower of carrying out a qualified 
        conservation project.
            ``(2) Qualified conservation project.--The term `qualified 
        conservation project' means conservation measures that address 
        provisions of a conservation plan of the eligible borrower.
            ``(3) Conservation plan.--The term `conservation plan' 
        means a plan, approved by the Secretary, that, for a farming or 
        ranching operation, identifies the conservation activities that 
        will be addressed with loan funds provided under this section, 
        including--
                    ``(A) the installation of conservation structures 
                to address soil, water, and related resources;
                    ``(B) the establishment of forest cover for 
                sustained yield timber management, erosion control, or 
                shelter belt purposes;
                    ``(C) the installation of water conservation 
                measures;
                    ``(D) the installation of waste management systems;
                    ``(E) the establishment or improvement of permanent 
                pasture;
                    ``(F) compliance with section 1212 of the Food 
                Security Act of 1985; and
                    ``(G) other purposes consistent with the plan, 
                including the adoption of any other emerging or 
                existing conservation practices, techniques, or 
                technologies approved by the Secretary.
    ``(c) Eligibility.--
            ``(1) In general.--The Secretary may make or guarantee 
        loans to farmers or ranchers in the United States, farm 
        cooperatives, private domestic corporations, partnerships, 
        joint operations, trusts, or limited liability companies that 
        are controlled by farmers or ranchers and engaged primarily and 
        directly in agricultural production in the United States.
            ``(2) Requirements.--To be eligible for a loan under this 
        section, applicants shall meet the requirements in paragraphs 
        (1) and (2) of section 302(a).
    ``(d) Priority.--In making or guaranteeing loans under this 
section, the Secretary shall give priority to--
            ``(1) qualified beginning farmers or ranchers and socially 
        disadvantaged farmers or ranchers;
            ``(2) owners or tenants who use the loans to convert to 
        sustainable or organic agricultural production systems; and
            ``(3) producers who use the loans to build conservation 
        structures or establish conservation practices to comply with 
        section 1212 of the Food Security Act of 1985.
    ``(e) Limitations Applicable to Loan Guarantees.--The portion of a 
loan that the Secretary may guarantee under this section shall be 75 
percent of the principal amount of the loan.
    ``(f) Administrative Provisions.--The Secretary shall ensure, to 
the maximum extent practicable, that loans made or guaranteed under 
this section are distributed across diverse geographic regions.
    ``(g) Credit Eligibility.--The provisions of paragraphs (1) and (3) 
of section 333 shall not apply to loans made or guaranteed under this 
section.
    ``(h) Authorization of Appropriations.--For each of fiscal years 
2008 through 2012, there are authorized to be appropriated to the 
Secretary such funds as are necessary to carry out this section.''.

SEC. 5003. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS.

    Section 305(a)(2) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1925(a)(2)) is amended by striking ``$200,000'' and 
inserting ``$300,000''.

SEC. 5004. DOWN PAYMENT LOAN PROGRAM.

    Section 310E of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1935) is amended--
            (1) in subsection (a)(1), by striking ``and ranchers'' and 
        inserting ``or ranchers and socially disadvantaged farmers or 
        ranchers'';
            (2) in subsection (b)--
                    (A) by striking paragraph (1) and inserting the 
                following;
            ``(1) Principal.--Each loan made under this section shall 
        be in an amount that does not exceed 45 percent of the least 
        of--
                    ``(A) the purchase price of the farm or ranch to be 
                acquired;
                    ``(B) the appraised value of the farm or ranch to 
                be acquired; or
                    ``(C) $500,000.
            ``(2) Interest rate.--The interest rate on any loan made by 
        the Secretary under this section shall be a rate equal to the 
        greater of--
                    ``(A) the difference obtained by subtracting 4 
                percent from the interest rate for farm ownership loans 
                under this subtitle; or
                    ``(B) 1.5 percent.''; and
                    (B) in paragraph (3), by striking ``15'' and 
                inserting ``20'';
            (3) in subsection (c)--
                    (A) in paragraph (1), by striking ``10'' and 
                inserting ``5'';
                    (B) by striking paragraph (2) and redesignating 
                paragraph (3) as paragraph (2); and
                    (C) in paragraph (2)(B) (as so redesignated), by 
                striking ``15-year'' and inserting ``20-year'';
            (4) in subsection (d)--
                    (A) in paragraph (3)--
                            (i) by inserting ``and socially 
                        disadvantaged farmers or ranchers'' after 
                        ``ranchers''; and
                            (ii) by striking ``and'' at the end;
                    (B) in paragraph (4), by striking ``and ranchers.'' 
                and inserting `` or ranchers or socially disadvantaged 
                farmers or ranchers; and''; and
                    (C) by adding at the end the following:
            ``(5) establish annual performance goals to promote the use 
        of the down payment loan program and other joint financing 
        arrangements as the preferred choice for direct real estate 
        loans made by any lender to a qualified beginning farmer or 
        rancher or socially disadvantaged farmer or rancher.''; and
            (5) by adding at the end the following:
    ``(e) Socially Disadvantaged Farmer or Rancher Defined.--In this 
section, the term `socially disadvantaged farmer or rancher' has the 
meaning given that term in section 355(e)(2).''.

SEC. 5005. BEGINNING FARMER OR RANCHER AND SOCIALLY DISADVANTAGED 
              FARMER OR RANCHER CONTRACT LAND SALES PROGRAM.

    Section 310F of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1936) is amended to read as follows:

``SEC. 310F. BEGINNING FARMER OR RANCHER AND SOCIALLY DISADVANTAGED 
              FARMER OR RANCHER CONTRACT LAND SALES PROGRAM.

    ``(a) In General.--The Secretary shall, in accordance with this 
section, guarantee a loan made by a private seller of a farm or ranch 
to a qualified beginning farmer or rancher or socially disadvantaged 
farmer or rancher (as defined in section 355(e)(2)) on a contract land 
sales basis.
    ``(b) Eligibility.--In order to be eligible for a loan guarantee 
under subsection (a)--
            ``(1) the qualified beginning farmer or rancher or socially 
        disadvantaged farmer or rancher shall--
                    ``(A) on the date the contract land sale that is 
                subject of the loan is complete, own and operate the 
                farm or ranch that is the subject of the contract land 
                sale;
                    ``(B) have a credit history that--
                            ``(i) includes a record of satisfactory 
                        debt repayment, as determined by the Secretary; 
                        and
                            ``(ii) is acceptable to the Secretary; and
                    ``(C) demonstrate to the Secretary that the farmer 
                or rancher, as the case may be, is unable to obtain 
                sufficient credit without a guarantee to finance any 
                actual need of the farmer or rancher, as the case may 
                be, at a reasonable rate or term; and
            ``(2) the loan shall meet applicable underwriting criteria, 
        as determined by the Secretary.
    ``(c) Limitations.--
            ``(1) Down payment.--The Secretary shall not provide a loan 
        guarantee under subsection (a) if the contribution of the 
        qualified beginning farmer or rancher or socially disadvantaged 
        farmer or rancher to the down payment for the farm or ranch 
        that is the subject of the contract land sale would be less 
        than 5 percent of the purchase price of the farm or ranch.
            ``(2) Maximum purchase price.--The Secretary shall not 
        provide a loan guarantee under subsection (a) if the purchase 
        price or the appraisal value of the farm or ranch that is the 
        subject of the contract land sale is greater than $500,000.
    ``(d) Period of Guarantee.--The period during which a loan 
guarantee under this section is in effect shall be the 10-year period 
beginning with the date the guarantee is provided.
    ``(e) Guarantee Plan.--
            ``(1) Selection of plan.--A private seller of a farm or 
        ranch who makes a loan that is guaranteed by the Secretary 
        under subsection (a) may select--
                    ``(A) a prompt payment guarantee plan, which shall 
                cover--
                            ``(i) 3 amortized annual installments; or
                            ``(ii) an amount equal to 3 annual 
                        installments (including an amount equal to the 
                        total cost of any tax and insurance incurred 
                        during the period covered by the annual 
                        installments); or
                    ``(B) a standard guarantee plan, which shall cover 
                an amount equal to 90 percent of the outstanding 
                principal of the loan.
            ``(2) Eligiblity for standard guarantee plan.--In order for 
        a private seller to be eligible for a standard guarantee plan 
        referred to in paragraph (1)(B), the private seller shall--
                    ``(A) secure a commercial lending institution or 
                similar entity, as determined by the Secretary, to 
                serve as an escrow agent; or
                    ``(B) in cooperation with the farmer or rancher, 
                use an appropriate alternate arrangement, as determined 
                by the Secretary.
    ``(f) Transition From Pilot Program.--
            ``(1) In general.--The Secretary may phase-in the 
        implementation of the changes to the Beginning Farmer and 
        Rancher and Socially Disadvantaged Farmer or Rancher Contract 
        Land Sales Program provided for in this section.
            ``(2) Limitation.--All changes to the Beginning Farmer and 
        Rancher and Socially Disadvantaged Farmer or Rancher Contract 
        Land Sales Program must be implemented for the 2011 Fiscal 
        Year.''.

                      Subtitle B--Operating Loans

SEC. 5101. FARMING EXPERIENCE AS ELIGIBILITY REQUIREMENT.

    Section 311 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1941) is amended--
            (1) by striking the section designation and all that 
        follows through ``(a) The Secretary is authorized to'' and 
        inserting the following:

``SEC. 311. PERSONS ELIGIBLE FOR LOANS.

    ``(a) In General.--The Secretary may'';
            (2) in subsection (a)(2), by inserting ``, taking into 
        consideration all farming experience of the applicant, without 
        regard to any lapse between farming experiences'' after 
        ``farming operations''.

SEC. 5102. LIMITATIONS ON AMOUNT OF OPERATING LOANS.

    Section 313(a)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1943(a)(1)) is amended by striking ``$200,000'' and 
inserting ``$300,000''.

SEC. 5103. SUSPENSION OF LIMITATION ON PERIOD FOR WHICH BORROWERS ARE 
              ELIGIBLE FOR GUARANTEED ASSISTANCE.

    Section 5102 of the Farm Security And Rural Investment Act of 2002 
(7 U.S.C. 1949 note; Public Law 107-171) is amended by striking 
``September 30, 2007'' and inserting ``December 31, 2010''.

                      Subtitle C--Emergency Loans

SEC. 5201. ELIGIBILITY OF EQUINE FARMERS AND RANCHERS FOR EMERGENCY 
              LOANS.

    Section 321(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1961(a)) is amended--
            (1) in paragraph (1), by striking ``farmers, ranchers'' and 
        inserting ``farmers or ranchers (including equine farmers or 
        ranchers)''; and
            (2) in paragraph (2)(A), by striking ``farming, ranching,'' 
        and inserting ``farming or ranching (including equine farming 
        or ranching)''.

                 Subtitle D--Administrative Provisions

SEC. 5301. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT ACCOUNTS 
              PILOT PROGRAM.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981-2008r) is amended by inserting after section 333A the 
following:

``SEC. 333B. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT 
              ACCOUNTS PILOT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Demonstration program.--The term `demonstration 
        program' means a demonstration program carried out by a 
        qualified entity under the pilot program established in 
        subsection (b)(1).
            ``(2) Eligible participant.--The term `eligible 
        participant' means a qualified beginning farmer or rancher 
        that--
                    ``(A) lacks significant financial resources or 
                assets; and
                    ``(B) has an income that is less than--
                            ``(i) 80 percent of the median income of 
                        the State in which the farmer or rancher 
                        resides; or
                            ``(ii) 200 percent of the most recent 
                        annual Federal Poverty Income Guidelines 
                        published by the Department of Health and Human 
                        Services for the State.
            ``(3) Individual development account.--The term `individual 
        development account' means a savings account described in 
        subsection (b)(4)(A).
            ``(4) Qualified entity.--
                    ``(A) In general.--The term `qualified entity' 
                means--
                            ``(i) 1 or more organizations--
                                    ``(I) described in section 
                                501(c)(3) of the Internal Revenue Code 
                                of 1986; and
                                    ``(II) exempt from taxation under 
                                section 501(a) of such Code; or
                            ``(ii) a State, local, or tribal government 
                        submitting an application jointly with an 
                        organization described in clause (i).
                    ``(B) No prohibition on collaboration.--An 
                organization described in subparagraph (A)(i) may 
                collaborate with a financial institution or for-profit 
                community development corporation to carry out the 
                purposes of this section.
    ``(b) Pilot Program.--
            ``(1) In general.--The Secretary shall establish a pilot 
        program to be known as the `New Farmer Individual Development 
        Accounts Pilot Program' under which the Secretary shall work 
        through qualified entities to establish demonstration 
        programs--
                    ``(A) of at least 5 years in duration; and
                    ``(B) in at least 15 States.
            ``(2) Coordination.--The Secretary shall operate the pilot 
        program through, and in coordination with the farm loan 
        programs of, the Farm Service Agency.
            ``(3) Reserve funds.--
                    ``(A) In general.--A qualified entity carrying out 
                a demonstration program under this section shall 
                establish a reserve fund consisting of a non-Federal 
                match of 50 percent of the total amount of the grant 
                awarded to the demonstration program under this 
                section.
                    ``(B) Federal funds.--After the qualified entity 
                has deposited the non-Federal matching funds described 
                in subparagraph (A) in the reserve fund, the Secretary 
                shall provide the total amount of the grant awarded 
                under this section to the demonstration program for 
                deposit in the reserve fund.
                    ``(C) Use of funds.--Of the funds deposited under 
                subparagraph (B) in the reserve fund established for a 
                demonstration program, the qualified entity carrying 
                out the demonstration program--
                            ``(i) may use up to 10 percent for 
                        administrative expenses; and
                            ``(ii) shall use the remainder in making 
                        matching awards described in paragraph 
                        (4)(B)(ii)(I).
                    ``(D) Interest.--Any interest earned on amounts in 
                a reserve fund established under subparagraph (A) may 
                be used by the qualified entity as additional matching 
                funds for, or to administer, the demonstration program.
                    ``(E) Guidance.--The Secretary shall issue guidance 
                regarding the investment requirements of reserve funds 
                established under this paragraph.
                    ``(F) Reversion.--On the date on which all funds 
                remaining in any individual development account 
                established by a qualified entity have reverted under 
                paragraph (5)(B)(ii) to the reserve fund established by 
                the qualified entity, there shall revert to the 
                Treasury of the United States a percentage of the 
                amount (if any) in the reserve fund equal to--
                            ``(i) the amount of Federal funds deposited 
                        in the reserve fund under subparagraph (B) that 
                        were not used for administrative expenses; 
                        divided by
                            ``(ii) the total amount of funds deposited 
                        in the reserve fund.
            ``(4) Individual development accounts.--
                    ``(A) In general.--A qualified entity receiving a 
                grant under this section shall establish and administer 
                individual development accounts for eligible 
                participants.
                    ``(B) Contract requirements.--To be eligible to 
                receive funds under this section from a qualified 
                entity, an eligible participant shall enter into a 
                contract with only 1 qualified entity under which--
                            ``(i) the eligible participant agrees--
                                    ``(I) to deposit a certain amount 
                                of funds of the eligible participant in 
                                a personal savings account, as 
                                prescribed by the contractual agreement 
                                between the eligible participant and 
                                the qualified entity;
                                    ``(II) to use the funds described 
                                in subclause (I) only for 1 or more 
                                eligible expenditures described in 
                                paragraph (5)(A); and
                                    ``(III) to complete financial 
                                training; and
                            ``(ii) the qualified entity agrees--
                                    ``(I) to deposit, not later than 1 
                                month after an amount is deposited 
                                pursuant to clause (i)(I), at least a 
                                100-percent, and up to a 200-percent, 
                                match of that amount into the 
                                individual development account 
                                established for the eligible 
                                participant; and
                                    ``(II) with uses of funds proposed 
                                by the eligible participant.
                    ``(C) Limitation.--
                            ``(i) In general.--A qualified entity 
                        administering a demonstration program under 
                        this section may provide not more than $6,000 
                        for each fiscal year in matching funds to the 
                        individual development account established by 
                        the qualified entity for an eligible 
                        participant.
                            ``(ii) Treatment of amount.--An amount 
                        provided under clause (i) shall not be 
                        considered to be a gift or loan for mortgage 
                        purposes.
            ``(5) Eligible expenditures.--
                    ``(A) In general.--An eligible expenditure 
                described in this subparagraph is an expenditure--
                            ``(i) to purchase farmland or make a down 
                        payment on an accepted purchase offer for 
                        farmland;
                            ``(ii) to make mortgage payments on 
                        farmland purchased pursuant to clause (i), for 
                        up to 180 days after the date of the purchase;
                            ``(iii) to purchase breeding stock, fruit 
                        or nut trees, or trees to harvest for timber; 
                        and
                            ``(iv) for other similar expenditures, as 
                        determined by the Secretary.
                    ``(B) Timing.--
                            ``(i) In general.--An eligible participant 
                        may make an eligible expenditure at any time 
                        during the 2-year period beginning on the date 
                        on which the last matching funds are provided 
                        under paragraph (4)(B)(ii)(I) to the individual 
                        development account established for the 
                        eligible participant.
                            ``(ii) Unexpended funds.--At the end of the 
                        period described in clause (i), any funds 
                        remaining in an individual development account 
                        established for an eligible participant shall 
                        revert to the reserve fund of the demonstration 
                        program under which the account was 
                        established.
    ``(c) Applications.--
            ``(1) In general.--A qualified entity that seeks to carry 
        out a demonstration program under this section may submit to 
        the Secretary an application at such time, in such form, and 
        containing such information as the Secretary may prescribe.
            ``(2) Criteria.--In considering whether to approve an 
        application to carry out a demonstration program under this 
        section, the Secretary shall assess--
                    ``(A) the degree to which the demonstration program 
                described in the application is likely to aid eligible 
                participants in successfully pursuing new farming 
                opportunities;
                    ``(B) the experience and ability of the qualified 
                entity to responsibly administer the demonstration 
                program;
                    ``(C) the experience and ability of the qualified 
                entity in recruiting, educating, and assisting eligible 
                participants to increase economic independence and 
                pursue or advance farming opportunities;
                    ``(D) the aggregate amount of direct funds from 
                non-Federal public sector and private sources that are 
                formally committed to the demonstration program as 
                matching contributions;
                    ``(E) the adequacy of the plan of the qualified 
                entity to provide information relevant to an evaluation 
                of the demonstration program; and
                    ``(F) such other factors as the Secretary considers 
                to be appropriate.
            ``(3) Preferences.--In considering an application to 
        conduct a demonstration program under this section, the 
        Secretary shall give preference to an application from a 
        qualified entity that demonstrates--
                    ``(A) a track record of serving clients targeted by 
                the program, including, as appropriate, socially 
                disadvantaged farmers or ranchers (as defined in 
                section 355(e)(2)); and
                    ``(B) expertise in dealing with financial 
                management aspects of farming.
            ``(4) Approval.--Not later than 1 year after the date of 
        enactment of this section, in accordance with this section, the 
        Secretary shall, on a competitive basis, approve such 
        applications to conduct demonstration programs as the Secretary 
        considers appropriate.
            ``(5) Term of authority.--If the Secretary approves an 
        application to carry out a demonstration program, the Secretary 
        shall authorize the applicant to carry out the project for a 
        period of 5 years, plus an additional 2 years to make eligible 
        expenditures in accordance with subsection (b)(5)(B).
    ``(d) Grant Authority.--
            ``(1) In general.--The Secretary shall make a grant to a 
        qualified entity authorized to carry out a demonstration 
        program under this section.
            ``(2) Maximum amount of grants.--The aggregate amount of 
        grant funds provided to a demonstration program carried out 
        under this section shall not exceed $250,000.
            ``(3) Timing of grant payments.--The Secretary shall pay 
        the amounts awarded under a grant made under this section--
                    ``(A) on the awarding of the grant; or
                    ``(B) pursuant to such payment plan as the 
                qualified entity may specify.
    ``(e) Reports.--
            ``(1) Annual progress reports.--
                    ``(A) In general.--Not later than 60 days after the 
                end of the calendar year in which the Secretary 
                authorizes a qualified entity to carry out a 
                demonstration program under this section, and annually 
                thereafter until the conclusion of the demonstration 
                program, the qualified entity shall prepare an annual 
                report that includes, for the period covered by the 
                report--
                            ``(i) an evaluation of the progress of the 
                        demonstration program;
                            ``(ii) information about the demonstration 
                        program, including the eligible participants 
                        and the individual development accounts that 
                        have been established; and
                            ``(iii) such other information as the 
                        Secretary may require.
                    ``(B) Submission of reports.--A qualified entity 
                shall submit each report required under subparagraph 
                (A) to the Secretary.
            ``(2) Reports by the secretary.--Not later than 1 year 
        after the date on which all demonstration programs under this 
        section are concluded, the Secretary shall submit to Congress a 
        final report that describes the results and findings of all 
        reports and evaluations carried out under this section.
    ``(f) Annual Review.--The Secretary may conduct an annual review of 
the financial records of a qualified entity--
            ``(1) to assess the financial soundness of the qualified 
        entity; and
            ``(2) to determine the use of grant funds made available to 
        the qualified entity under this section.
    ``(g) Regulations.--In carrying out this section, the Secretary may 
promulgate regulations to ensure that the program includes provisions 
for--
            ``(1) the termination of demonstration programs;
            ``(2) control of the reserve funds in the case of such a 
        termination;
            ``(3) transfer of demonstration programs to other qualified 
        entities; and
            ``(4) remissions from a reserve fund to the Secretary in a 
        case in which a demonstration program is terminated without 
        transfer to a new qualified entity.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2008 through 2012.''.

SEC. 5302. INVENTORY SALES PREFERENCES; LOAN FUND SET-ASIDES.

    (a) Inventory Sales Preferences.--Section 335(c) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1985(c)) is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B)--
                            (i) in the subparagraph heading, by 
                        inserting ``; socially disadvantaged farmer or 
                        rancher'' after ``or rancher'';
                            (ii) in clause (i), by inserting `` or a 
                        socially disadvantaged farmer or rancher'' 
                        after ``or rancher'';
                            (iii) in clause (ii), by inserting ``or 
                        socially disadvantaged farmer or rancher'' 
                        after ``or rancher'';
                            (iv) in clause (iii), by inserting ``or a 
                        socially disadvantaged farmer or rancher'' 
                        after ``or rancher''; and
                            (v) in clause (iv), by striking ``and 
                        ranchers'' and inserting ``or ranchers and 
                        socially disadvantaged farmers or ranchers''; 
                        and
                    (B) in subparagraph (C), by inserting ``or a 
                socially disadvantaged farmer or rancher'' after ``or 
                rancher'';
            (2) in paragraph (5)(B)--
                    (A) in clause (i)--
                            (i) in the clause heading, by inserting ``; 
                        socially disadvantaged farmer or rancher'' 
                        after ``or rancher'';
                            (ii) by inserting ``or a socially 
                        disadvantaged farmer or rancher'' after ``a 
                        beginning farmer or rancher''; and
                            (iii) by inserting ``or the socially 
                        disadvantaged farmer or rancher'' after ``the 
                        beginning farmer or rancher''; and
                    (B) in clause (ii)--
                            (i) in the matter preceding subclause (I), 
                        by inserting ``or a socially disadvantaged 
                        farmer or rancher'' after ``or rancher''; and
                            (ii) in subclause (II), by inserting ``or 
                        the socially disadvantaged farmer or rancher'' 
                        after ``or rancher''; and
            (3) in paragraph (6)--
                    (A) in subparagraph (A), by inserting ``or a 
                socially disadvantaged farmer or rancher'' after ``or 
                rancher''; and
                    (B) in subparagraph (C)--
                            (i) in clause (i)(I), by striking ``and 
                        ranchers'' and inserting ``or ranchers and 
                        socially disadvantaged farmers or ranchers''; 
                        and
                            (ii) in clause (ii), by inserting ``or 
                        socially disadvantaged farmers or ranchers'' 
                        after ``or ranchers''.
    (b) Loan Fund Set-Asides.--Section 346(b)(2) of such Act (7 U.S.C. 
1994(b)(2)) is amended--
            (1) in subparagraph (A)--
                    (A) in clause (i)--
                            (i) in subclause (I), by striking ``70 
                        percent'' and inserting ``an amount that is not 
                        less than 75 percent of the total amount''; and
                            (ii) in subclause (II)--
                                    (I) in the subclause heading, by 
                                inserting ``; joint financing 
                                arrangements'' after ``payment loans'';
                                    (II) by striking ``60 percent'' and 
                                inserting ``an amount not less than \2/
                                3\ of the amount''; and
                                    (III) by inserting ``and joint 
                                financing arrangements under section 
                                307(a)(3)(D)'' after ``section 310E''; 
                                and
                    (B) in clause (ii)(III), by striking ``2003 through 
                2007, 35 percent'' and inserting ``2008 through 2012, 
                an amount that is not less than 50 percent of the total 
                amount''; and
            (2) in subparagraph (B)(i), by striking ``25 percent'' and 
        inserting ``an amount that is not less than 40 percent of the 
        total amount''.

SEC. 5303. LOAN AUTHORIZATION LEVELS.

    Section 346(b)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1994(b)(1)) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``$3,796,000,000 for each of fiscal years 2003 through 2007'' 
        and inserting ``$4,226,000,000 for each of fiscal years 2008 
        through 2012''; and
            (2) in subparagraph (A)--
                    (A) in the matter preceding clause (i), by striking 
                ``$770,000,000'' and inserting ``$1,200,000,000'';
                    (B) in clause (i), by striking ``$205,000,000'' and 
                inserting ``$350,000,000''; and
                    (C) in clause (ii), by striking ``$565,000,000'' 
                and inserting ``$850,000,000''.

SEC. 5304. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES OF CREDIT.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981-2008r) is amended by inserting after section 344 the 
following:

``SEC. 345. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES OF 
              CREDIT.

    ``(a) In General.--In making or insuring a farm loan under subtitle 
A or B, the Secretary shall establish a plan and promulgate regulations 
(including performance criteria) that promote the goal of transitioning 
borrowers to private commercial credit and other sources of credit in 
the shortest period of time practicable.
    ``(b) Coordination.--In carrying out this section, the Secretary 
shall integrate and coordinate the transition policy described in 
subsection (a) with--
            ``(1) the borrower training program established by section 
        359;
            ``(2) the loan assessment process established by section 
        360;
            ``(3) the supervised credit requirement established by 
        section 361;
            ``(4) the market placement program established by section 
        362; and
            ``(5) other appropriate programs and authorities, as 
        determined by the Secretary.''.

SEC. 5305. EXTENSION OF THE RIGHT OF FIRST REFUSAL TO REACQUIRE 
              HOMESTEAD PROPERTY TO IMMEDIATE FAMILY MEMBERS OF 
              BORROWER-OWNER.

    Section 352(c)(4)(B) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2000(c)(4)(B)) is amended--
            (1) in the 1st sentence, by striking ``, the borrower-
        owner'' inserting ``of a borrower-owner who is a socially 
        disadvantaged farmer or rancher (as defined in section 
        355(e)(2)), the borrower-owner or a member of the immediate 
        family of the borrower-owner''; and
            (2) in the 2nd sentence, by inserting ``or immediate family 
        member, as the case may be,'' before ``from''.

SEC. 5306. RURAL DEVELOPMENT AND FARM LOAN PROGRAM ACTIVITIES.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981-2008r) is amended by inserting after section 364 the 
following:

``SEC. 365. RURAL DEVELOPMENT AND FARM LOAN PROGRAM ACTIVITIES.

    ``The Secretary may not complete a study of, or enter into a 
contract with a private party to carry out, without specific 
authorization in a subsequent Act of Congress, a competitive sourcing 
activity of the Secretary, including support personnel of the 
Department of Agriculture, relating to rural development or farm loan 
programs.''.

                        Subtitle E--Farm Credit

SEC. 5401. FARM CREDIT SYSTEM INSURANCE CORPORATION.

    (a) In General.--Section 1.12(b) of the Farm Credit Act of 1971 (12 
U.S.C. 2020(b)) is amended--
            (1) in the first sentence, by striking ``Each Farm'' and 
        inserting the following;
            ``(1) In general.--Each Farm''; and
            (2) by striking the second sentence and inserting the 
        following:
            ``(2) Computation.--The assessment on any association or 
        other financing institution described in paragraph (1) for any 
        period shall be computed in an equitable manner, as determined 
        by the Corporation.''.
    (b) Rules and Regulations.--Section 5.58(10) of such Act (12 U.S.C. 
2277a-7(10)) is amended by inserting ``and section 1.12(b)'' after 
``part''.

SEC. 5402. TECHNICAL CORRECTION.

    Section 3.3(b) of the Farm Credit Act of 1971 (12 U.S.C. 2124(b)) 
is amended in the first sentence by striking ``per'' and inserting 
``par''.

SEC. 5403. BANK FOR COOPERATIVES VOTING STOCK.

    (a) In General.--Section 3.3(c) of the Farm Credit Act of 1971 (12 
U.S.C. 2124(c)) is amended by striking ``and (ii)'' and inserting 
``(ii) other categories of persons and entities described in sections 
3.7 and 3.8 eligible to borrow from the bank, as determined by the 
bank's board of directors; and (iii)''.
    (b) Conforming Amendments.--Section 4.3A(c)(1)(D) of such Act (12 
U.S.C. 2154a(c)(1)(D)) is amended by redesignating clauses (ii) and 
(iii) as clauses (iii) and (iv), respectively, and inserting after 
clause (i) the following:
                            ``(ii) persons and entities eligible to 
                        borrow from the banks for cooperatives, as 
                        described in section 3.3(c)(ii);''.

SEC. 5404. PREMIUMS.

    (a) Amount in Fund Not Exceeding Secure Base Amount.--Section 
5.55(a) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4(a)) is 
amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``paragraph (2)'' and 
                        inserting ``paragraph (3)''; and
                            (ii) by striking ``annual'' ; and
                    (B) by striking subparagraphs (A) through (D) and 
                inserting the following:
                    ``(A) the average outstanding insured obligations 
                issued by the bank for the calendar year, after 
                deducting from the obligations the percentages of the 
                guaranteed portions of loans and investments described 
                in paragraph (2), multiplied by 0.0020; and
                    ``(B) the product obtained by multiplying--
                            ``(i) the sum of--
                                    ``(I) the average principal 
                                outstanding for the calendar year on 
                                loans made by the bank that are in 
                                nonaccrual status; and
                                    ``(II) the average amount 
                                outstanding for the calendar year of 
                                other-than-temporarily impaired 
                                investments made by the bank; by
                            ``(ii) 0.0010.'';
            (2) by striking paragraph (4);
            (3) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively;
            (4) by inserting after paragraph (1) the following:
            ``(2) Deductions from average outstanding insured 
        obligations.--The average outstanding insured obligations 
        issued by the bank for the calendar year referred to in 
        paragraph (1)(A) shall be reduced by deducting from the 
        obligations the sum of (as determined by the Corporation)--
                    ``(A) 90 percent of each of--
                            ``(i) the average principal outstanding for 
                        the calendar year on the guaranteed portions of 
                        Federal government-guaranteed loans made by the 
                        bank that are in accrual status; and
                            ``(ii) the average amount outstanding for 
                        the calendar year of the guaranteed portions of 
                        Federal government-guaranteed investments made 
                        by the bank that are not permanently impaired; 
                        and
                    ``(B) 80 percent of each of--
                            ``(i) the average principal outstanding for 
                        the calendar year on the guaranteed portions of 
                        State government-guaranteed loans made by the 
                        bank that are in accrual status; and
                            ``(ii) the average amount outstanding for 
                        the calendar year of the guaranteed portions of 
                        State government-guaranteed investments made by 
                        the bank that are not permanently impaired.'';
            (5) in paragraph (3) (as so redesignated by paragraph (3) 
        of this subsection), by striking ``annual''; and
            (6) in paragraph (4) (as so redesignated by paragraph (3) 
        of this subsection)--
                    (A) in the paragraph heading, by inserting ``or 
                investments'' after ``loans'' ; and
                    (B) in the matter preceding subparagraph (A), by 
                striking ``As used'' and all that follows through 
                ``guaranteed--'' and inserting ``In this section, the 
                term `government-guaranteed', when applied to a loan or 
                an investment, means a loan, credit, or investment, or 
                portion of a loan, credit, or investment, that is 
                guaranteed--''.
    (b) Amount in Fund Exceeding Secure Base Amount.--Section 5.55(b) 
of such Act (12 U.S.C. 2277a-4(b)) is amended by striking ``annual''.
    (c) Secure Base Amount.--Section 5.55(c) of such Act (12 U.S.C. 
2277a-4(c)) is amended--
            (1) by striking ``For purposes'' and inserting the 
        following:
            ``(1) In general.--For purposes'';
            (2) by striking ``(adjusted downward'' and all that follows 
        through ``by the Corporation)'' and inserting ``(as adjusted 
        under paragraph (2))''; and
            (3) by adding at the end the following:
            ``(2) Adjustment.--The aggregate outstanding insured 
        obligations of all insured System banks under paragraph (1) 
        shall be adjusted downward to exclude an amount equal to the 
        sum of (as determined by the corporation)--
                    ``(A) 90 percent of each of--
                            ``(i) the guaranteed portions of principal 
                        outstanding on Federal government-guaranteed 
                        loans in accrual status made by the banks; and
                            ``(ii) the guaranteed portions of the 
                        amount of Federal government-guaranteed 
                        investments made by the banks that are not 
                        permanently impaired; and
                    ``(B) 80 percent of each of--
                            ``(i) the guaranteed portions of principal 
                        outstanding on State government-guaranteed 
                        loans in accrual status made by the banks; and
                            ``(ii) the guaranteed portions of the 
                        amount of State government-guaranteed 
                        investments made by the banks that are not 
                        permanently impaired.''.
    (d) Determination of Loan and Investment Amounts.--Section 5.55(d) 
of such Act (12 U.S.C. 2277a-4(d)) is amended--
            (1) in the subsection heading, by striking ``Principal 
        Outstanding'' and inserting ``Loan and Investment Amounts'';
            (2) in the matter preceding paragraph (1), by striking 
        ``For the purpose'' and all that follows through ``made--'' and 
        inserting ``For the purpose of subsections (a) and (c), the 
        principal outstanding on all loans made by an insured System 
        bank, and the amount outstanding on all investments made by an 
        insured System bank, shall be determined based on--'';
            (3) in each of paragraphs (1), (2), and (3), by inserting 
        ``all loans or investments made'' before ``by'' the first place 
        it appears; and
            (4) in each of paragraphs (1) and (2), by inserting ``or 
        investments'' after ``that is able to make such loans'' each 
        place it appears.
    (e) Allocation to System Institutions of Excess Reserves.--Section 
5.55(e) of such Act (12 U.S.C. 2277a-4(e)) is amended--
            (1) in paragraph (3), by striking ``the average secure base 
        amount for the calendar year (as calculated on an average daily 
        balance basis)'' and inserting ``the secure base amount'';
            (2) in paragraph (4), by striking subparagraph (B) and 
        inserting the following:
                    ``(B) there shall be credited to the allocated 
                insurance reserves account of each insured system bank 
                an amount that bears the same ratio to the total amount 
                (less any amount credited under subparagraph (A)) as--
                            ``(i) the average principal outstanding for 
                        the calendar year on insured obligations issued 
                        by the bank (after deducting from the principal 
                        the percentages of the guaranteed portions of 
                        loans and investments described in subsection 
                        (a)(2)); bears to
                            ``(ii) the average principal outstanding 
                        for the calendar year on insured obligations 
                        issued by all insured System banks (after 
                        deducting from the principal the percentages of 
                        the guaranteed portions of loans and 
                        investments described in subsection (a)(2)).''; 
                        and
            (3) in paragraph (6)--
                    (A) in subparagraph (A)--
                            (i) in the matter preceding clause (i), by 
                        striking ``beginning more'' and all that 
                        follows through ``January 1, 2005'';
                            (ii) by striking clause (i) and inserting 
                        the following:
                            ``(i) subject to subparagraph (D), pay to 
                        each insured System bank, in a manner 
                        determined by the Corporation, an amount equal 
                        to the balance in the Allocated Insurance 
                        Reserves Account of the System bank; and''; and
                            (iii) in clause (ii)--
                                    (I) by striking ``subparagraphs 
                                (C), (E), and (F)'' and inserting 
                                ``subparagraphs (C) and (E)''; and
                                    (II) by striking ``, of the lesser 
                                of--'' and all that follows through the 
                                end of subclause (II) and inserting 
                                ``at the time of the termination of the 
                                Financial Assistance Corporation, of 
                                the balance in the Allocated Insurance 
                                Reserves Account established under 
                                paragraph (1)(B).'';
                    (B) in subparagraph (C)--
                            (i) in clause (i), by striking ``(in 
                        addition to the amounts described in 
                        subparagraph (F)(ii))''; and
                            (ii) by striking clause (ii) and inserting 
                        the following:
                            ``(ii) Termination of account.--On 
                        disbursement of an amount equal to $56,000,000, 
                        the Corporation shall--
                                    ``(I) close the account established 
                                under paragraph (1)(B); and
                                    ``(II) transfer any remaining funds 
                                in the Account to the remaining 
                                Allocated Insurance Reserves Accounts 
                                in accordance with paragraph (4)(B) for 
                                the calendar year in which the transfer 
                                occurs.''; and
                    (C) by striking subparagraph (F).

SEC. 5405. CERTIFICATION OF PREMIUMS.

    (a) Filing Certified Statement.--Section 5.56 of the Farm Credit 
Act of 1971 (12 U.S.C. 2277a-5) is amended by striking subsection (a) 
and inserting the following:
    ``(a) Filing Certified Statement.--On a date to be determined in 
the sole discretion of the Board of Directors of the Corporation, each 
insured System bank that became insured before the beginning of the 
period for which premiums are being assessed (referred to in this 
section as the `period') shall file with the Corporation a certified 
statement showing--
            ``(1) the average outstanding insured obligations for the 
        period issued by the bank;
            ``(2)(A) the average principal outstanding for the period 
        on the guaranteed portion of Federal government-guaranteed 
        loans that are in accrual status; and
            ``(B) the average amount outstanding for the period of 
        Federal government-guaranteed investments that are not 
        permanently impaired (as defined in section 5.55(a)(4));
            ``(3)(A) the average principal outstanding for the period 
        on State government-guaranteed loans that are in accrual 
        status; and
            ``(B) the average amount outstanding for the period of 
        State government-guaranteed investments that are not 
        permanently impaired (as defined in section 5.55(a)(4));
            ``(4)(A) the average principal outstanding for the period 
        on loans that are in nonaccrual status; and
            ``(B) the average amount outstanding for the period of 
        other-than-temporarily impaired investments; and
            ``(5) the amount of the premium due the Corporation from 
        the bank for the period.''.
    (b) Premium Payments.--Section 5.56 of such Act (12 U.S.C. 2277a-5) 
is amended by striking subsection (c) and inserting the following:
    ``(c) Premium Payments.--
            ``(1) In general.--Except as provided in paragraph (2), 
        each insured System bank shall pay to the Corporation the 
        premium payments required under subsection (a), not more 
        frequently than once in each calendar quarter, in such manner 
        and at such 1 or more times as the Board of Directors shall 
        prescribe.
            ``(2) Premium amount.--The amount of the premium shall be 
        established not later than 60 days after filing the certified 
        statement specifying the amount of the premium.''.
    (c) Subsequent Premium Payments.--Section 5.56 of such Act (12 
U.S.C. 2277a-5) is amended--
            (1) by striking subsection (d); and
            (2) by redesignating subsection (e) as subsection (d).

SEC. 5406. RURAL UTILITY LOANS.

    (a) Definition of Qualified Loan.--Section 8.0(9) of the Farm 
Credit Act of 1971 (12 U.S.C. 2279aa(9)) is amended--
            (1) in subparagraph (A)(iii), by striking ``or'' at the 
        end;
            (2) in subparagraph (B)(ii), by striking the period at the 
        end and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(C) that is a loan, or an interest in a loan, for 
                an electric or telephone facility by a cooperative 
                lender to a borrower that has received, or is eligible 
                to receive, a loan under the Rural Electrification Act 
                of 1936 (7 U.S.C. 901 et seq.).''.
    (b) Guarantee of Qualified Loans.--Section 8.6(a)(1) of such Act 
(12 U.S.C. 2279aa-6(a)(1)) is amended by inserting ``applicable'' 
before ``standards'' each place it appears in subparagraphs (A) and 
(B)(i).
    (c) Standards for Qualified Loans.--Section 8.8 of such Act (12 
U.S.C. 2279aa-8) is amended--
            (1) in subsection (a)--
                    (A) by striking the first sentence and inserting 
                the following:
            ``(1) In general.--The Corporation shall establish 
        underwriting, security appraisal, and repayment standards for 
        qualified loans taking into account the nature, risk profile, 
        and other differences between different categories of qualified 
        loans.
            ``(2) Supervision, examination, and report of condition.--
        The standards shall be subject to the authorities of the Farm 
        Credit Administration under section 8.11.''; and
                    (B) in the last sentence, by striking ``In 
                establishing'' and inserting the following:
            ``(3) Mortgage loans.--In establishing'';
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``with respect to loans secured by 
                agricultural real estate'' after ``subsection (a)''; 
                and
                    (B) in paragraph (5)--
                            (i) by striking ``borrower'' the first 
                        place it appears and inserting ``farmer or 
                        rancher''; and
                            (ii) by striking ``site'' and inserting 
                        ``farm or ranch'';
            (3) in subsection (c)(1), by inserting ``secured by 
        agricultural real estate'' after ``A loan'';
            (4) by striking subsection (d); and
            (5) by redesignating subsection (e) as subsection (d).
    (d) Risk-Based Capital Levels.--Section 8.32(a)(1) of such Act (12 
U.S.C. 2279bb-1(a)(1)) is amended--
            (1) by striking ``With respect'' and inserting the 
        following:
                    ``(A) In general.--With respect''; and
            (2) by adding at the end the following:
                    ``(B) Rural utility loans.--With respect to 
                securities representing an interest in, or obligation 
                backed by, a pool of qualified loans described in 
                section 8.0(9)(C) owned or guaranteed by the 
                Corporation, losses occur at a rate of default and 
                severity reasonably related to risks in electric and 
                telephone facility loans (as applicable), as determined 
                by the Director.''.

SEC. 5407. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN DISTRICT 
              ASSOCIATIONS.

    (a) In General.--The Farm Credit Act of 1971 is amended by 
inserting after section 7.6 (12 U.S.C. 2279b) the following:

``SEC. 7.7. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN DISTRICT 
              ASSOCIATIONS.

    ``(a) Equalization of Loan-Making Powers.--
            ``(1) In general.--
                    ``(A) Federal land bank associations.--Subject to 
                paragraph (2), any association that owns a Federal land 
                bank association authorized as of January 1, 2007, to 
                make long-term loans under title I in its chartered 
                territory within the geographic area described in 
                subsection (b) may make short- and intermediate-term 
                loans and otherwise operate as a production credit 
                association under title II within that same chartered 
                territory.
                    ``(B) Production credit associations.--Subject to 
                paragraph (2), any association that under its charter 
                has title I lending authority and that owns a 
                production credit association authorized as of January 
                1, 2007, to make short- and intermediate-term loans 
                under title II in the geographic area described in 
                subsection (b) may make long-term loans and otherwise 
                operate, directly or through a subsidiary association, 
                as a Federal land bank association or Federal land 
                credit association under title I in the geographic 
                area.
                    ``(C) Farm credit bank.--Notwithstanding section 
                5.17(a), the Farm Credit Bank with which any 
                association had a written financing agreement as of 
                January 1, 2007, may make loans and extend other 
                comparable financial assistance with respect to, and 
                may purchase, any loans made under the new authority 
                provided under subparagraph (A) or (B) by an 
                association exercising such authority.
            ``(2) Required approvals.--An association may exercise the 
        additional authority provided for in paragraph (1) only after 
        the exercise of the authority is approved by--
                    ``(A) the board of directors of the association; 
                and
                    ``(B) a majority of the voting stockholders of the 
                association (or, if the association is a subsidiary of 
                another association, the voting stockholders of the 
                parent association) voting, in person or by proxy, at a 
                duly authorized meeting of stockholders in accordance 
                with the process described in section 7.11.
    ``(b) Applicability.--This section applies only to associations the 
chartered territory of which was within the geographic area served by 
the Federal intermediate credit bank immediately prior to its merger 
with a Farm Credit Bank under section 410(e)(1) of the Agricultural 
Credit Act of 1987 (12 U.S.C. 2011 note; Public Law 100-233).''.
    (b) Charter Amendments.--Section 5.17(a) of the Farm Credit Act of 
1971 (12 U.S.C. 2252(a)) is amended by adding at the end the following:
            ``(15)(A) Approve amendments to the charters of 
        institutions of the Farm Credit System to implement the 
        equalization of loan-making powers of a Farm Credit System 
        association under section 7.7.
            ``(B) Amendments described in subparagraph (A) to the 
        charters of an association and the related Farm Credit Bank 
        shall be approved by the Farm Credit Administration, subject to 
        any conditions of approval imposed, by not later than 30 days 
        after the date on which the Farm Credit Administration receives 
        all approvals required by section 7.7(a)(2).''.
    (c) Conforming Amendments.--
            (1) Section 5.17(a)(2) of the Farm Credit Act of 1971 (12 
        U.S.C. 2252(a)(2)) is amended--
                    (A) by striking ``(2)(A)'' and inserting ``(2)''; 
                and
                    (B) by striking subparagraphs (B) and (C).
            (2) Section 410 of the 1987 act.--Section 410(e)(1)(A)(iii) 
        of the Agricultural Credit Act of 1987 (12 U.S.C. 2011 note; 
        Public Law 100-233) is amended by inserting ``(except section 
        7.7 of that Act)'' after ``(12 U.S.C. 2001 et seq.)''.
            (3) Section 401 of the 1992 act.--Section 401(b) of the 
        Farm Credit Banks and Associations Safety and Soundness Act of 
        1992 (12 U.S.C. 2011 note; Public Law 102-552) is amended--
                    (A) by inserting ``(except section 7.7 of the Farm 
                Credit Act of 1971)'' after ``provision of law''; and
                    (B) by striking ``, subject to such limitations'' 
                and all that follows through the end of the paragraph 
                and inserting a period.
    (d) Effective Date.--The amendments made by this section take 
effect on January 1, 2010.

                       Subtitle F--Miscellaneous

SEC. 5501. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND.

    The first section of Public Law 91-229 (25 U.S.C. 488) is amended--
            (1) by striking ``That the Secretary'' and inserting the 
        following:

``SECTION 1. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND.

    ``(a) In General.--The Secretary''; and
            (2) by adding at the end the following:
    ``(b) Highly Fractionated Land.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        of Agriculture may make and insure loans in accordance with 
        section 309 of the Consolidated Farm and Rural Development Act 
        (7 U.S.C. 1929) to eligible purchasers of highly fractionated 
        land pursuant to section 205(c) of the Indian Land 
        Consolidation Act (25 U.S.C. 2204(c)).
            ``(2) Exclusion.--Section 4 shall not apply to trust land, 
        restricted tribal land, or tribal corporation land that is 
        mortgaged in accordance with paragraph (1).''.

                      TITLE VI--RURAL DEVELOPMENT

        Subtitle A--Consolidated Farm and Rural Development Act

SEC. 6001. WATER, WASTE DISPOSAL, AND WASTEWATER FACILITY GRANTS.

    Section 306(a)(2)(B)(vii) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) is amended by striking 
``2002 through 2007'' and inserting ``2008 through 2012''.

SEC. 6002. SEARCH GRANTS.

    (a) In General.--Section 306(a)(2) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926(a)(2)) is amended by adding at the 
end the following:
                    ``(C) Special evaluation assistance for rural 
                communities and households program.--
                            ``(i) In general.--The Secretary may 
                        establish the Special Evaluation Assistance for 
                        Rural Communities and Households (SEARCH) 
                        program, to make predevelopment planning grants 
                        for feasibility studies, design assistance, and 
                        technical assistance, to financially distressed 
                        communities in rural areas with populations of 
                        2,500 or fewer inhabitants for water and waste 
                        disposal projects described in paragraph (1), 
                        this paragraph, and paragraph (24).
                            ``(ii) Terms.--
                                    ``(I) Documentation.--With respect 
                                to grants made under this subparagraph, 
                                the Secretary shall require the lowest 
                                amount of documentation practicable.
                                    ``(II) Matching.--Notwithstanding 
                                any other provisions in this 
                                subsection, the Secretary may fund up 
                                to 100 percent of the eligible costs of 
                                grants provided under this 
                                subparagraph, as determined by the 
                                Secretary.
                            ``(iii) Funding.--The Secretary may use not 
                        more than 4 percent of the total amount of 
                        funds made available for a fiscal year for 
                        water, waste disposal, and essential community 
                        facility activities under this title to carry 
                        out this subparagraph.
                            ``(iv) Relationship to other authority.--
                        The funds and authorities provided under this 
                        subparagraph are in addition to any other funds 
                        or authorities the Secretary may have to carry 
                        out activities described in clause (i).''.
    (b) Conforming Amendment.--Subtitle D of title VI of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 2009ee et seq.) is 
repealed.

SEC. 6003. RURAL BUSINESS OPPORTUNITY GRANTS.

    Section 306(a)(11)(D) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(11)(D)) is amended by striking ``1996 
through 2007'' and inserting ``2008 through 2012''.

SEC. 6004. CHILD DAY CARE FACILITY GRANTS, LOANS, AND LOAN GUARANTEES.

    Section 306(a)(19)(C)(ii) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(19)(C)(ii)) is amended by striking 
``April'' and inserting ``June''.

SEC. 6005. COMMUNITY FACILITY GRANTS TO ADVANCE BROADBAND.

    Section 306(a)(20)(E) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(20)(E)) is amended--
            (1) by striking ``state'' and inserting ``State''; and
            (2) by striking ``dial-up Internet access or''.

SEC. 6006. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.

    Section 306(a)(22)(C) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(22)(C)) is amended by striking 
``$15,000,000 for fiscal year 2003'' and inserting ``$25,000,000 for 
fiscal year 2008''.

SEC. 6007. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY 
              FACILITIES.

    Section 306(a)(25) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926(a)(25)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``tribal colleges and 
                universities'' and inserting ``an entity that is a 
                Tribal College or University''; and
                    (B) by striking ``tribal college or university'' 
                and inserting ``Tribal College or University'';
            (2) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) Federal share.--The Secretary shall establish 
                the maximum percentage of the cost of the facility that 
                may be covered by a grant under this paragraph, except 
                that the Secretary may not require non-Federal 
                financial support in an amount that is greater than 5 
                percent of the total cost of the facility.''; and
            (3) in subparagraph (C), by striking ``2003 through 2007'' 
        and inserting ``2008 through 2012''.

SEC. 6008. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANT 
              PROGRAM.

    Section 306A(i)(2) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926a(i)(2)) is amended by striking ``2003 through 2007'' 
and inserting ``2008 through 2012''.

SEC. 6009. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.

    (a) In General.--Section 306D(d)(1) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1926d(d)(1)) is amended by striking 
``2001 through 2007'' and inserting ``2008 through 2012''.
    (b) Rural Communities Assistance.--Section 4009 of the Solid Waste 
Disposal Act (42 U.S.C. 6949) is amended by adding at the end the 
following:
    ``(e) Additional Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section for the Denali Commission to provide 
        assistance to municipalities in the State of Alaska $1,500,000 
        for each of fiscal years 2008 through 2012.
            ``(2) Administration.--For the purpose of carrying out this 
        subsection, the Denali Commission shall--
                    ``(A) be considered a State; and
                    ``(B) comply with all other requirements and 
                limitations of this section.''.

SEC. 6010. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE 
              CONSTRUCTION, REFURBISHING, AND SERVICING OF 
              INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS IN RURAL 
              AREAS FOR INDIVIDUALS WITH LOW OR MODERATE INCOMES.

    Section 306E of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1926e) is amended--
            (1) in subsection (b)(2)(C), by striking ``$8,000'' and 
        inserting ``$11,000''; and
            (2) in subsection (d), by striking ``2003 through 2007'' 
        and inserting ``2008 through 2012''.

SEC. 6011. INTEREST RATES FOR WATER AND WASTE DISPOSAL FACILITIES 
              LOANS.

    Section 307(a)(3) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1927(a)(3)) is amended by adding at the end the 
following:
                    ``(E) Interest rates for water and waste disposal 
                facilities loans.--
                            ``(i) In general.--Except as provided in 
                        clause (ii) and notwithstanding subparagraph 
                        (A), in the case of a direct loan for a water 
                        or waste disposal facility--
                                    ``(I) in the case of a loan that 
                                would be subject to the 5 percent 
                                interest rate limitation under 
                                subparagraph (A), the Secretary shall 
                                establish the interest rate at a rate 
                                that is equal to 60 percent of the 
                                current market yield for outstanding 
                                municipal obligations with remaining 
                                periods to maturity comparable to the 
                                average maturity of the loan, adjusted 
                                to the nearest \1/8\ of 1 percent; and
                                    ``(II) in the case of a loan that 
                                would be subject to the 7 percent 
                                limitation under subparagraph (A), the 
                                Secretary shall establish the interest 
                                rate at a rate that is equal to 80 
                                percent of the current market yield for 
                                outstanding municipal obligations with 
                                remaining periods to maturity 
                                comparable to the average maturity of 
                                the loan, adjusted to the nearest \1/8\ 
                                of 1 percent.
                            ``(ii) Exception.--Clause (i) does not 
                        apply to a loan for a specific project that is 
                        the subject of a loan that has been approved, 
                        but not closed, as of the date of enactment of 
                        this subparagraph.''.

SEC. 6012. COOPERATIVE EQUITY SECURITY GUARANTEE.

    (a) In General.--Section 310B of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932) is amended--
            (1) by striking ``sec. 310B. (a)'' and inserting the 
        following:

``SEC. 310B. ASSISTANCE FOR RURAL ENTITIES.

    ``(a) Loans to Private Business Enterprises.--
            ``(1) Definitions.--In this subsection:'';
            (2) in subsection (a)--
                    (A) by moving the second and fourth sentences so as 
                to appear as the second and first sentences, 
                respectively;
                    (B) in the sentence beginning ``As used in this 
                subsection, the'' (as moved by subparagraph (A)), by 
                striking ``As used in this subsection, the'' and 
                inserting the following:
                    ``(A) Aquaculture.--The'';
                    (C) in the sentence beginning ``For the purposes of 
                this subsection, the'', by striking ``For the purposes 
                of this subsection, the'' and inserting the following:
                    ``(B) Solar energy.--The'';
                    (D) in the sentence beginning ``The Secretary may 
                also''--
                            (i) by striking ``The Secretary may also'' 
                        and inserting the following:
            ``(2) Loan purposes.--The Secretary may'';
                            (ii) by inserting ``and private investment 
                        funds that invest primarily in cooperative 
                        organizations'' after ``or nonprofit'';
                            (iii) by striking ``of (1) improving'' and 
                        inserting ``of--
                    ``(A) improving'';
                            (iv) by striking ``control, (2) the'' and 
                        inserting ``control;
                    ``(B) the'';
                            (v) by striking ``areas, (3) reducing'' and 
                        inserting ``areas;
                    ``(C) reducing'';
                            (vi) by striking ``areas, and (4) to'' and 
                        inserting ``areas; and
                    ``(D) to'';
                    (E) in the sentence beginning ``Such loans,'', by 
                striking ``Such loans,'' and inserting the following:
            ``(3) Loan guarantees.--Loans described in paragraph 
        (2),''; and
                    (F) in the last sentence, by striking ``No loan'' 
                and inserting the following:
            ``(4) Maximum amount of principal.--No loan''; and
            (3) in subsection (g)--
                    (A) in paragraph (1), by inserting ``, including 
                guarantees described in paragraph (3)(A)(ii)'' before 
                the period at the end;
                    (B) in paragraph (3)(A)--
                            (i) by striking ``(A) In general.--The 
                        Secretary'' and inserting the following:
                    ``(A) Eligibility.--
                            ``(i) In general.--The Secretary''; and
                            (ii) by adding at the end the following:
                            ``(ii) Equity.--The Secretary may guarantee 
                        a loan made for the purchase of preferred stock 
                        or similar equity issued by a cooperative 
                        organization or a fund that invests primarily 
                        in cooperative organizations, if the guarantee 
                        significantly benefits 1 or more entities 
                        eligible for assistance for the purposes 
                        described in subsection (a)(1), as determined 
                        by the Secretary.''; and
                    (C) in paragraph (8)(A)(ii), by striking ``a 
                project--'' and all that follows through the end of 
                subclause (II) and inserting ``a project that--
                                    ``(I)(aa) is in a rural area; and
                                    ``(bb) provides for the value-added 
                                processing of agricultural commodities; 
                                or
                                    ``(II) significantly benefits 1 or 
                                more entities eligible for assistance 
                                for the purposes described in 
                                subsection (a)(1), as determined by the 
                                Secretary.''.
    (b) Conforming Amendments.--
            (1) Section 307(a)(6)(B) of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 1927(a)(6)(B)) is amended by striking 
        clause (ii) and inserting the following:
            ``(ii) section 310B(a)(2)(A); and''.
            (2) Section 310B(g) of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 1932(g)) is amended by striking 
        ``subsection (a)(1)'' each place it appears in paragraphs (1), 
        (6)(A)(iii), and (8)(C) and inserting ``subsection (a)(2)(A)''.
            (3) Section 333A(g)(1)(B) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1983a(g)(1)(B)) is amended by 
        striking ``section 310B(a)(1)'' and inserting ``section 
        310B(a)(2)(A)''.
            (4) Section 381E(d)(3)(B) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 2009d(d)(3)(B)) is amended by 
        striking ``section 310B(a)(1)'' and inserting ``section 
        310B(a)(2)(A)''.

SEC. 6013. RURAL COOPERATIVE DEVELOPMENT GRANTS.

    (a) Eligibility.--Section 310B(e)(5) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1932(e)(5)) is amended--
            (1) in subparagraph (A), by striking ``administering a 
        nationally coordinated, regionally or State-wide operated 
        project'' and inserting ``carrying out activities to promote 
        and assist the development of cooperatively and mutually owned 
        businesses'';
            (2) in subparagraph (B), by inserting ``to promote and 
        assist the development of cooperatively and mutually owned 
        businesses'' before the semicolon;
            (3) by striking subparagraph (D);
            (4) by redesignating subparagraph (E) as subparagraph (D);
            (5) in subparagraph (D) (as so redesignated), by striking 
        ``and'' at the end;
            (6) by inserting after subparagraph (D) (as so 
        redesignated) the following:
                    ``(E) demonstrate a commitment to--
                            ``(i) networking with and sharing the 
                        results of the efforts of the center with other 
                        cooperative development centers and other 
                        organizations involved in rural economic 
                        development efforts; and
                            ``(ii) developing multiorganization and 
                        multistate approaches to addressing the 
                        economic development and cooperative needs of 
                        rural areas; and''; and
            (7) in subparagraph (F), by striking ``providing greater 
        than'' and inserting ``providing''.
    (b) Authority to Award Multiyear Grants.--Section 310B(e) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) is 
amended by striking paragraph (6) and inserting the following:
            ``(6) Grant period.--
                    ``(A) In general.--A grant awarded to a center that 
                has received no prior funding under this subsection 
                shall be made for a period of 1 year.
                    ``(B) Multiyear grants.--If the Secretary 
                determines it to be in the best interest of the 
                program, the Secretary shall award grants for a period 
                of more than 1 year, but not more than 3 years, to a 
                center that has successfully met the parameters 
                described in paragraph (5), as determined by the 
                Secretary.''.
    (c) Authority to Extend Grant Period.--Section 310B(e) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) is 
amended--
            (1) by redesignating paragraphs (7), (8), and (9) as 
        paragraphs (8), (9), and (12), respectively; and
            (2) by inserting after paragraph (6) the following:
            ``(7) Authority to extend grant period.--The Secretary may 
        extend for 1 additional 12-month period the period in which a 
        grantee may use a grant made under this subsection.''.
    (d) Cooperative Research Program.--Section 310B(e) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) is 
amended by inserting after paragraph (9) (as redesignated by subsection 
(c)(1)) the following:
            ``(10) Cooperative research program.--The Secretary shall 
        enter into a cooperative research agreement with 1 or more 
        qualified academic institutions in each fiscal year to conduct 
        research on the effects of all types of cooperatives on the 
        national economy.''.
    (e) Addressing Needs of Minority Communities.--Section 310B(e) of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) is 
amended by inserting after paragraph (10) (as added by subsection (d)) 
the following:
            ``(11) Addressing needs of minority communities.--
                    ``(A) Definition of socially disadvantaged group.--
                In this paragraph, the term `socially disadvantaged 
                group' has the meaning given the term in section 
                355(e).
                    ``(B) Reservation of funds.--
                            ``(i) In general.--If the total amount 
                        appropriated under paragraph (12) for a fiscal 
                        year exceeds $7,500,000, the Secretary shall 
                        reserve an amount equal to 20 percent of the 
                        total amount appropriated for grants for 
                        cooperative development centers, individual 
                        cooperatives, or groups of cooperatives--
                                    ``(I) that serve socially 
                                disadvantaged groups; and
                                    ``(II) a majority of the boards of 
                                directors or governing boards of which 
                                are comprised of individuals who are 
                                members of socially disadvantaged 
                                groups.
                            ``(ii) Insufficient applications.--To the 
                        extent there are insufficient applications to 
                        carry out clause (i), the Secretary shall use 
                        the funds as otherwise authorized by this 
                        subsection.''.
    (f) Authorization of Appropriations.--Paragraph (12) of section 
310B(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 
1932(e)) (as redesignated by subsection (c)(1)) is amended by striking 
``1996 through 2007'' and inserting ``2008 through 2012''.

SEC. 6014. GRANTS TO BROADCASTING SYSTEMS.

    Section 310B(f)(3) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1932(f)(3)) is amended by striking ``2002 through 2007'' 
and inserting ``2008 through 2012''.

SEC. 6015. LOCALLY OR REGIONALLY PRODUCED AGRICULTURAL FOOD PRODUCTS.

    Section 310B(g) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1932(g)) is amended by adding at the end the following:
            ``(9) Locally or regionally produced agricultural food 
        products.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Locally or regionally produced 
                        agricultural food product.--The term `locally 
                        or regionally produced agricultural food 
                        product' means any agricultural food product 
                        that is raised, produced, and distributed in--
                                    ``(I) the locality or region in 
                                which the final product is marketed, so 
                                that the total distance that the 
                                product is transported is less than 400 
                                miles from the origin of the product; 
                                or
                                    ``(II) the State in which the 
                                product is produced.
                            ``(ii) Underserved community.--The term 
                        `underserved community' means a community 
                        (including an urban or rural community and an 
                        Indian tribal community) that has, as 
                        determined by the Secretary--
                                    ``(I) limited access to affordable, 
                                healthy foods, including fresh fruits 
                                and vegetables, in grocery retail 
                                stores or farmer-to-consumer direct 
                                markets; and
                                    ``(II) a high rate of hunger or 
                                food insecurity or a high poverty rate.
                    ``(B) Loan and loan guarantee program.--
                            ``(i) In general.--The Secretary shall make 
                        or guarantee loans to individuals, 
                        cooperatives, cooperative organizations, 
                        businesses, and other entities to establish and 
                        facilitate enterprises that process, 
                        distribute, aggregate, store, and market 
                        locally or regionally produced agricultural 
                        food products to support community development 
                        and farm and ranch income.
                            ``(ii) Requirement.--The recipient of a 
                        loan or loan guarantee under clause (i) shall 
                        include in an appropriate agreement with retail 
                        and institutional facilities to which the 
                        recipient sells locally or regionally produced 
                        agricultural food products a requirement to 
                        inform consumers of the retail or institutional 
                        facilities that the consumers are purchasing or 
                        consuming locally or regionally produced 
                        agricultural food products.
                            ``(iii) Priority.--In making or 
                        guaranteeing a loan under clause (i), the 
                        Secretary shall give priority to projects that 
                        have components benefitting underserved 
                        communities.
                            ``(iv) Reports.--Not later than 2 years 
                        after the date of enactment of this paragraph 
                        and annually thereafter, the Secretary shall 
                        submit to the Committee on Agriculture of the 
                        House of Representatives and the Committee on 
                        Agriculture, Nutrition, and Forestry of the 
                        Senate a report that describes projects carried 
                        out using loans or loan guarantees made under 
                        clause (i), including--
                                    ``(I) the characteristics of the 
                                communities served; and
                                    ``(II) resulting benefits.
                            ``(v) Reservation of funds.--
                                    ``(I) In general.--For each of 
                                fiscal years 2008 through 2012, the 
                                Secretary shall reserve not less than 5 
                                percent of the funds made available to 
                                carry out this subsection to carry out 
                                this subparagraph.
                                    ``(II) Availability of funds.--
                                Funds reserved under subclause (I) for 
                                a fiscal year shall be reserved until 
                                April 1 of the fiscal year.''.

SEC. 6016. APPROPRIATE TECHNOLOGY TRANSFER FOR RURAL AREAS.

    Section 310B of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1932) is amended by adding at the end the following:
    ``(i) Appropriate Technology Transfer for Rural Areas Program.--
            ``(1) Definition of national nonprofit agricultural 
        assistance institution.--In this subsection, the term `national 
        nonprofit agricultural assistance institution' means an 
        organization that--
                    ``(A) is described in section 501(c)(3) of the 
                Internal Revenue Code of 1986 and exempt from taxation 
                under 501(a) of that Code;
                    ``(B) has staff and offices in multiple regions of 
                the United States;
                    ``(C) has experience and expertise in operating 
                national agriculture technical assistance programs;
                    ``(D) expands markets for the agricultural 
                commodities produced by producers through the use of 
                practices that enhance the environment, natural 
                resource base, and quality of life; and
                    ``(E) improves the economic viability of 
                agricultural operations.
            ``(2) Establishment.--The Secretary shall establish a 
        national appropriate technology transfer for rural areas 
        program to assist agricultural producers that are seeking 
        information to--
                    ``(A) reduce input costs;
                    ``(B) conserve energy resources;
                    ``(C) diversify operations through new energy crops 
                and energy generation facilities; and
                    ``(D) expand markets for agricultural commodities 
                produced by the producers by using practices that 
                enhance the environment, natural resource base, and 
                quality of life.
            ``(3) Implementation.--
                    ``(A) In general.--The Secretary shall carry out 
                the program under this subsection by making a grant to, 
                or offering to enter into a cooperative agreement with, 
                a national nonprofit agricultural assistance 
                institution.
                    ``(B) Grant amount.--A grant made, or cooperative 
                agreement entered into, under subparagraph (A) shall 
                provide 100 percent of the cost of providing 
                information described in paragraph (2).
            ``(4) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subsection 
        $5,000,000 for each of fiscal years 2008 through 2012.''.

SEC. 6017. RURAL ECONOMIC AREA PARTNERSHIP ZONES.

    Section 310B of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1932) (as amended by section 6016) is amended by adding at the 
end the following:
    ``(j) Rural Economic Area Partnership Zones.--Effective beginning 
on the date of enactment of this subsection through September 30, 2012, 
the Secretary shall carry out those rural economic area partnership 
zones administratively in effect on the date of enactment of this 
subsection in accordance with the terms and conditions contained in the 
memorandums of agreement entered into by the Secretary for the rural 
economic area partnership zones, except as otherwise provided in this 
subsection.''.

SEC. 6018. DEFINITIONS.

    (a) Rural Area.--Section 343(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1991(a)) is amended by striking paragraph 
(13) and inserting the following:
            ``(13) Rural and rural area.--
                    ``(A) In general.--Subject to subparagraphs (B) 
                through (G), the terms `rural' and `rural area' mean 
                any area other than--
                            ``(i) a city or town that has a population 
                        of greater than 50,000 inhabitants; and
                            ``(ii) any urbanized area contiguous and 
                        adjacent to a city or town described in clause 
                        (i).
                    ``(B) Water and waste disposal grants and direct 
                and guaranteed loans.--For the purpose of water and 
                waste disposal grants and direct and guaranteed loans 
                provided under paragraphs (1), (2), and (24) of section 
                306(a), the terms `rural' and `rural area' mean a city, 
                town, or unincorporated area that has a population of 
                no more than 10,000 inhabitants.
                    ``(C) Community facility loans and grants.--For the 
                purpose of community facility direct and guaranteed 
                loans and grants under paragraphs (1), (19), (20), 
                (21), and (24) of section 306(a), the terms `rural' and 
                `rural area' mean any area other than a city, town, or 
                unincorporated area that has a population of greater 
                than 20,000 inhabitants.
                    ``(D) Areas rural in character.--
                            ``(i) Application.--This subparagraph 
                        applies to--
                                    ``(I) an urbanized area described 
                                in subparagraphs (A)(ii) and (F) that--
                                            ``(aa) has 2 points on its 
                                        boundary that are at least 40 
                                        miles apart; and
                                            ``(bb) is not contiguous or 
                                        adjacent to a city or town that 
                                        has a population of greater 
                                        than 150,000 inhabitants or an 
                                        urbanized area of such city or 
                                        town; and
                                    ``(II) an area within an urbanized 
                                area described in subparagraphs (A)(ii) 
                                and (F) that is within \1/4\-mile of a 
                                rural area described in subparagraph 
                                (A).
                            ``(ii) Determination.--Notwithstanding any 
                        other provision of this paragraph, on the 
                        petition of a unit of local government in an 
                        area described in clause (i) or on the 
                        initiative of the Under Secretary for Rural 
                        Development, the Under Secretary may determine 
                        that a part of an area described in clause (i) 
                        is a rural area for the purposes of this 
                        paragraph, if the Under Secretary finds that 
                        the part is rural in character, as determined 
                        by the Under Secretary.
                            ``(iii) Administration.--In carrying out 
                        this subparagraph, the Under Secretary for 
                        Rural Development shall--
                                    ``(I) not delegate the authority to 
                                carry out this subparagraph;
                                    ``(II) consult with the applicable 
                                rural development State or regional 
                                director of the Department of 
                                Agriculture and the governor of the 
                                respective State;
                                    ``(III) provide to the petitioner 
                                an opportunity to appeal to the Under 
                                Secretary a determination made under 
                                this subparagraph;
                                    ``(IV) release to the public notice 
                                of a petition filed or initiative of 
                                the Under Secretary under this 
                                subparagraph not later than 30 days 
                                after receipt of the petition or the 
                                commencement of the initiative, as 
                                appropriate;
                                    ``(V) make a determination under 
                                this subparagraph not less than 15 
                                days, and not more than 60 days, after 
                                the release of the notice under 
                                subclause (IV);
                                    ``(VI) submit to the Committee on 
                                Agriculture of the House of 
                                Representatives and the Committee on 
                                Agriculture, Nutrition, and Forestry of 
                                the Senate an annual report on actions 
                                taken to carry out this subparagraph; 
                                and
                                    ``(VII) terminate a determination 
                                under this subparagraph that part of an 
                                area is a rural area on the date that 
                                data is available for the next 
                                decennial census conducted under 
                                section 141(a) of title 13, United 
                                States Code.
                    ``(E) Exclusions.--Notwithstanding any other 
                provision of this paragraph, in determining which 
                census blocks in an urbanized area are not in a rural 
                area (as defined in this paragraph), the Secretary 
                shall exclude any cluster of census blocks that would 
                otherwise be considered not in a rural area only 
                because the cluster is adjacent to not more than 2 
                census blocks that are otherwise considered not in a 
                rural area under this paragraph.
                    ``(F) Urban area growth.--
                            ``(i) Application.--This subparagraph 
                        applies to--
                                    ``(I) any area that--
                                            ``(aa) is a collection of 
                                        census blocks that are 
                                        contiguous to each other;
                                            ``(bb) has a housing 
                                        density that the Secretary 
                                        estimates is greater than 200 
                                        housing units per square mile; 
                                        and
                                            ``(cc) is contiguous or 
                                        adjacent to an existing 
                                        boundary of a rural area; and
                                    ``(II) any urbanized area 
                                contiguous and adjacent to a city or 
                                town described in subparagraph (A)(i).
                            ``(ii) Adjustments.--The Secretary may, by 
                        regulation only, consider--
                                    ``(I) an area described in clause 
                                (i)(I) not to be a rural area for 
                                purposes of subparagraphs (A) and (C); 
                                and
                                    ``(II) an area described in clause 
                                (i)(II) not to be a rural area for 
                                purposes of subparagraph (C).
                            ``(iii) Appeals.--A program applicant may 
                        appeal an estimate made under clause (i)(I) 
                        based on appropriate data for an area, as 
                        determined by the Secretary.
                    ``(G) Hawaii and puerto rico.--Notwithstanding any 
                other provision of this paragraph, within the areas of 
                the County of Honolulu, Hawaii, and the Commonwealth of 
                Puerto Rico, the Secretary may designate any part of 
                the areas as a rural area if the Secretary determines 
                that the part is not urban in character, other than any 
                area included in the Honolulu Census Designated Place 
                or the San Juan Census Designated Place.''.
    (b) Report.--Not later than 2 years after the date of enactment of 
this Act, the Secretary shall prepare and submit to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report that--
            (1) assesses the various definitions of the term ``rural'' 
        and ``rural area'' that are used with respect to programs 
        administered by the Secretary;
            (2) describes the effects that the variations in those 
        definitions have on those programs;
            (3) make recommendations for ways to better target funds 
        provided through rural development programs; and
            (4) determines the effect of the amendment made by 
        subsection (a) on the level of rural development funding and 
        participation in those programs in each State.

SEC. 6019. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

    Section 378 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2008m) is amended--
            (1) in subsection (g)(1), by striking ``2003 through 2007'' 
        and inserting ``2008 through 2012''; and
            (2) in subsection (h), by striking ``the date that is 5 
        years after the date of enactment of this section'' and 
        inserting ``September 30, 2012''.

SEC. 6020. HISTORIC BARN PRESERVATION.

    (a) Grant Priority.--Section 379A(c) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2008o(c)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraphs (A) and (B), by striking ``a 
                historic barn'' each place it appears and inserting 
                ``historic barns''; and
                    (B) in subparagraph (C), by striking ``on a 
                historic barn'' and inserting ``on historic barns 
                (including surveys)'';
            (2) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively; and
            (3) by inserting after paragraph (2) the following:
            ``(3) Priority.--In making grants under this subsection, 
        the Secretary shall give the highest priority to funding 
        projects described in paragraph (2)(C).''.
    (b) Authorization of Appropriations.--Section 379A(c)(5) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2008o(c)(5)) (as 
redesignated by subsection (a)(2)) is amended by striking ``2002 
through 2007'' and inserting ``2008 through 2012''.

SEC. 6021. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.

    Section 379B(d) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 2008p(d)) is amended by striking ``2002 through 2007'' and 
inserting ``2008 through 2012''.

SEC. 6022. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981 et seq.) is amended by adding at the end the following:

``SEC. 379E. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            ``(2) Microentrepreneur.--The term `microentrepreneur' 
        means an owner and operator, or prospective owner and operator, 
        of a rural microenterprise who is unable to obtain sufficient 
        training, technical assistance, or credit other than under this 
        section, as determined by the Secretary.
            ``(3) Microenterprise development organization.--The term 
        `microenterprise development organization' means an 
        organization that--
                    ``(A) is--
                            ``(i) a nonprofit entity;
                            ``(ii) an Indian tribe, the tribal 
                        government of which certifies to the Secretary 
                        that--
                                    ``(I) no microenterprise 
                                development organization serves the 
                                Indian tribe; and
                                    ``(II) no rural microentrepreneur 
                                assistance program exists under the 
                                jurisdiction of the Indian tribe; or
                            ``(iii) a public institution of higher 
                        education;
                    ``(B) provides training and technical assistance to 
                rural microentrepreneurs;
                    ``(C) facilitates access to capital or another 
                service described in subsection (b) for rural 
                microenterprises; and
                    ``(D) has a demonstrated record of delivering 
                services to rural microentrepreneurs, or an effective 
                plan to develop a program to deliver services to rural 
                microentrepreneurs, as determined by the Secretary.
            ``(4) Microloan.--The term `microloan' means a business 
        loan of not more than $50,000 that is provided to a rural 
        microenterprise.
            ``(5) Program.--The term `program' means the rural 
        microentrepreneur assistance program established under 
        subsection (b).
            ``(6) Rural microenterprise.--The term `rural 
        microenterprise' means--
                    ``(A) a sole proprietorship located in a rural 
                area; or
                    ``(B) a business entity with not more than 10 full-
                time-equivalent employees located in a rural area.
    ``(b) Rural Microentrepreneur Assistance Program.--
            ``(1) Establishment.--The Secretary shall establish a rural 
        microentrepreneur assistance program to provide loans and 
        grants to support microentrepreneurs in the development and 
        ongoing success of rural microenterprises.
            ``(2) Purpose.--The purpose of the program is to provide 
        microentrepreneurs with--
                    ``(A) the skills necessary to establish new rural 
                microenterprises; and
                    ``(B) continuing technical and financial assistance 
                related to the successful operation of rural 
                microenterprises.
            ``(3) Loans.--
                    ``(A) In general.--The Secretary shall make loans 
                to microenterprise development organizations for the 
                purpose of providing fixed interest rate microloans to 
                microentrepreneurs for startup and growing rural 
                microenterprises.
                    ``(B) Loan terms.--A loan made by the Secretary to 
                a microenterprise development organization under this 
                paragraph shall--
                            ``(i) be for a term not to exceed 20 years; 
                        and
                            ``(ii) bear an annual interest rate of at 
                        least 1 percent.
                    ``(C) Loan loss reserve fund.--The Secretary shall 
                require each microenterprise development organization 
                that receives a loan under this paragraph to--
                            ``(i) establish a loan loss reserve fund; 
                        and
                            ``(ii) maintain the reserve fund in an 
                        amount equal to at least 5 percent of the 
                        outstanding balance of such loans owed by the 
                        microenterprise development organization, until 
                        all obligations owed to the Secretary under 
                        this paragraph are repaid.
                    ``(D) Deferral of interest and principal.--The 
                Secretary may permit the deferral of payments on 
                principal and interest due on a loan to a 
                microenterprise development organization made under 
                this paragraph for a 2-year period beginning on the 
                date the loan is made.
            ``(4) Grants.--
                    ``(A) Grants to support rural microenterprise 
                development.--
                            ``(i) In general.--The Secretary shall make 
                        grants to microenterprise development 
                        organizations to--
                                    ``(I) provide training, operational 
                                support, business planning, and market 
                                development assistance, and other 
                                related services to rural 
                                microentrepreneurs; and
                                    ``(II) carry out such other 
                                projects and activities as the 
                                Secretary determines appropriate to 
                                further the purposes of the program.
                            ``(ii) Selection.--In making grants under 
                        clause (i), the Secretary shall--
                                    ``(I) place an emphasis on 
                                microenterprise development 
                                organizations that serve 
                                microentrepreneurs that are located in 
                                rural areas that have suffered 
                                significant outward migration, as 
                                determined by the Secretary; and
                                    ``(II) ensure, to the maximum 
                                extent practicable, that grant 
                                recipients include microenterprise 
                                development organizations--
                                            ``(aa) of varying sizes; 
                                        and
                                            ``(bb) that serve racially 
                                        and ethnically diverse 
                                        populations.
                    ``(B) Grants to assist microentrepreneurs.--
                            ``(i) In general.--The Secretary shall make 
                        grants to microenterprise development 
                        organizations to provide marketing, management, 
                        and other technical assistance to 
                        microentrepreneurs that--
                                    ``(I) received a loan from the 
                                microenterprise development 
                                organization under paragraph (3); or
                                    ``(II) are seeking a loan from the 
                                microenterprise development 
                                organization under paragraph (3).
                            ``(ii) Maximum amount of grant.--A 
                        microenterprise development organization shall 
                        be eligible to receive an annual grant under 
                        this subparagraph in an amount equal to not 
                        more than 25 percent of the total outstanding 
                        balance of microloans made by the 
                        microenterprise development organization under 
                        paragraph (3), as of the date the grant is 
                        awarded.
                    ``(C) Administrative expenses.--Not more than 10 
                percent of a grant received by a microenterprise 
                development organization for a fiscal year under this 
                paragraph may be used to pay administrative expenses.
    ``(c) Administration.--
            ``(1) Cost share.--
                    ``(A) Federal share.--Subject to subparagraph (B), 
                the Federal share of the cost of a project funded under 
                this section shall not exceed 75 percent.
                    ``(B) Matching requirement.--As a condition of any 
                grant made under this subparagraph, the Secretary shall 
                require the microenterprise development organization to 
                match not less than 15 percent of the total amount of 
                the grant in the form of matching funds, indirect 
                costs, or in-kind goods or services.
                    ``(C) Form of non-federal share.--The non-Federal 
                share of the cost of a project funded under this 
                section may be provided--
                            ``(i) in cash (including through fees, 
                        grants (including community development block 
                        grants), and gifts); or
                            ``(ii) in the form of in-kind 
                        contributions.
            ``(2) Oversight.--At a minimum, not later than December 1 
        of each fiscal year, a microenterprise development organization 
        that receives a loan or grant under this section shall provide 
        to the Secretary such information as the Secretary may require 
        to ensure that assistance provided under this section is used 
        for the purposes for which the loan or grant was made.
    ``(d) Funding.--
            ``(1) Mandatory funding.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall use to carry out this 
        section, to remain available until expended--
                    ``(A) $4,000,000 for each of fiscal years 2009 
                through 2011; and
                    ``(B) $3,000,000 for fiscal year 2012.
            ``(2) Discretionary funding.--In addition to amounts made 
        available under paragraph (1), there are authorized to be 
        appropriated to carry out this section $40,000,000 for each of 
        fiscal years 2009 through 2012.''.

SEC. 6023. GRANTS FOR EXPANSION OF EMPLOYMENT OPPORTUNITIES FOR 
              INDIVIDUALS WITH DISABILITIES IN RURAL AREAS.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981 et seq.) (as amended by section 6022) is amended by adding 
at the end the following:

``SEC. 379F. GRANTS FOR EXPANSION OF EMPLOYMENT OPPORTUNITIES FOR 
              INDIVIDUALS WITH DISABILITIES IN RURAL AREAS.

    ``(a) Definitions.--In this section:
            ``(1) Individual with a disability.--The term `individual 
        with a disability' means an individual with a disability (as 
        defined in section 3 of the Americans with Disabilities Act of 
        1990 (42 U.S.C. 12102)).
            ``(2) Individuals with disabilities.--The term `individuals 
        with disabilities' means more than 1 individual with a 
        disability.
    ``(b) Grants.--The Secretary shall make grants to nonprofit 
organizations, or to a consortium of nonprofit organizations, to expand 
and enhance employment opportunities for individuals with disabilities 
in rural areas.
    ``(c) Eligibility.--To be eligible to receive a grant under this 
section, a nonprofit organization or consortium of nonprofit 
organizations shall have--
            ``(1) a significant focus on serving the needs of 
        individuals with disabilities;
            ``(2) demonstrated knowledge and expertise in--
                    ``(A) employment of individuals with disabilities; 
                and
                    ``(B) advising private entities on accessibility 
                issues involving individuals with disabilities;
            ``(3) expertise in removing barriers to employment for 
        individuals with disabilities, including access to 
        transportation, assistive technology, and other accommodations; 
        and
            ``(4) existing relationships with national organizations 
        focused primarily on the needs of rural areas.
    ``(d) Uses.--A grant received under this section may be used only 
to expand or enhance--
            ``(1) employment opportunities for individuals with 
        disabilities in rural areas by developing national technical 
        assistance and education resources to assist small businesses 
        in a rural area to recruit, hire, accommodate, and employ 
        individuals with disabilities; and
            ``(2) self-employment and entrepreneurship opportunities 
        for individuals with disabilities in a rural area.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $2,000,000 for each of fiscal 
years 2008 through 2012.''.

SEC. 6024. HEALTH CARE SERVICES.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981 et seq.) (as amended by section 6023) is amended by adding 
at the end the following:

``SEC. 379G. HEALTH CARE SERVICES.

    ``(a) Purpose.--The purpose of this section is to address the 
continued unmet health needs in the Delta region through cooperation 
among health care professionals, institutions of higher education, 
research institutions, and other individuals and entities in the 
region.
    ``(b) Definition of Eligible Entity.--In this section, the term 
`eligible entity' means a consortium of regional institutions of higher 
education, academic health and research institutes, and economic 
development entities located in the Delta region that have experience 
in addressing the health care issues in the region.
    ``(c) Grants.--To carry out the purpose described in subsection 
(a), the Secretary may award a grant to an eligible entity for -
            ``(1) the development of -
                    ``(A) health care services;
                    ``(B) health education programs; and
                    ``(C) health care job training programs; and
            ``(2) the development and expansion of public health-
        related facilities in the Delta region to address longstanding 
        and unmet health needs of the region.
    ``(d) Use.--As a condition of the receipt of the grant, the 
eligible entity shall use the grant to fund projects and activities 
described in subsection (c), based on input solicited from local 
governments, public health care providers, and other entities in the 
Delta region.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section, $3,000,000 for 
each of fiscal years 2008 through 2012.''.

SEC. 6025. DELTA REGIONAL AUTHORITY.

    (a) Authorization of Appropriations.--Section 382M(a) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-12(a)) is 
amended by striking ``2001 through 2007'' and inserting ``2008 through 
2012''.
    (b) Termination of Authority.--Section 382N of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 2009aa-13) is amended by 
striking ``2007'' and inserting ``2012''.
    (c) Expansion.--Section 4(2) of the Delta Development Act (42 
U.S.C. 3121 note; Public Law 100-460) is amended--
            (1) in subparagraph (D), by inserting ``Beauregard, 
        Bienville, Cameron, Claiborne, DeSoto, Jefferson Davis, Red 
        River, St. Mary, Vermillion, Webster,'' after ``St. James,''; 
        and
            (2) in subparagraph (E)--
                    (A) by inserting ``Jasper,'' after ``Copiah,''; and
                    (B) by inserting ``Smith,'' after ``Simpson,''.

SEC. 6026. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

    (a) Definition of Region.--Section 383A(4) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 2009bb(4)) is amended by inserting 
``Missouri (other than counties included in the Delta Regional 
Authority),'' after ``Minnesota,''.
    (b) Establishment.--Section 383B of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2009bb-1) is amended--
            (1) in subsection (a), by adding at the end the following:
            ``(4) Failure to confirm.--
                    ``(A) Federal member.--Notwithstanding any other 
                provision of this section, if a Federal member 
                described in paragraph (2)(A) has not been confirmed by 
                the Senate by not later than 180 days after the date of 
                enactment of this paragraph, the Authority may organize 
                and operate without the Federal member.
                    ``(B) Indian chairperson.--In the case of the 
                Indian Chairperson, if no Indian Chairperson is 
                confirmed by the Senate, the regional authority shall 
                consult and coordinate with the leaders of Indian 
                tribes in the region concerning the activities of the 
                Authority, as appropriate.'';
            (2) in subsection (d)--
                    (A) in paragraph (1), by striking ``to establish 
                priorities and'' and inserting ``for multistate 
                cooperation to advance the economic and social well-
                being of the region and to'';
                    (B) in paragraph (3), by striking ``local 
                development districts,'' and inserting ``regional and 
                local development districts or organizations, regional 
                boards established under subtitle I,'';
                    (C) in paragraph (4), by striking ``cooperation;'' 
                and inserting ``cooperation for--
                            ``(i) renewable energy development and 
                        transmission;
                            ``(ii) transportation planning and economic 
                        development;
                            ``(iii) information technology;
                            ``(iv) movement of freight and individuals 
                        within the region;
                            ``(v) federally-funded research at 
                        institutions of higher education; and
                            ``(vi) conservation land management;'';
                    (D) by striking paragraph (6) and inserting the 
                following:
            ``(6) enhance the capacity of, and provide support for, 
        multistate development and research organizations, local 
        development organizations and districts, and resource 
        conservation districts in the region;''; and
                    (E) in paragraph (7), by inserting ``renewable 
                energy,'' after ``commercial,''.
            (3) in subsection (f)(2), by striking ``the Federal 
        cochairperson'' and inserting ``a cochairperson'';
            (4) in subsection (g)(1), by striking subparagraphs (A) 
        through (C) and inserting the following:
                    ``(A) for each of fiscal years 2008 and 2009, 100 
                percent;
                    ``(B) for fiscal year 2010, 75 percent; and
                    ``(C) for fiscal year 2011 and each fiscal year 
                thereafter, 50 percent.''.
    (c) Interstate Cooperation for Economic Opportunity and 
Efficiency.--
            (1) In general.--Subtitle G of the Consolidated Farm and 
        Rural Development Act is amended--
                    (A) by redesignating sections 383C through 383N (7 
                U.S.C. 2009bb-2 through 2009bb-13) as sections 383D 
                through 383O, respectively; and
                    (B) by inserting after section 383B (7 U.S.C. 
                2009bb-1) the following:

``SEC. 383C. INTERSTATE COOPERATION FOR ECONOMIC OPPORTUNITY AND 
              EFFICIENCY.

    ``(a) In General.--The Authority shall provide assistance to States 
in developing regional plans to address multistate economic issues, 
including plans--
            ``(1) to develop a regional transmission system for 
        movement of renewable energy to markets outside the region;
            ``(2) to address regional transportation concerns, 
        including the establishment of a Northern Great Plains Regional 
        Transportation Working Group;
            ``(3) to encourage and support interstate collaboration on 
        federally-funded research that is in the national interest; and
            ``(4) to establish a Regional Working Group on Agriculture 
        Development and Transportation.
    ``(b) Economic Issues.--The multistate economic issues referred to 
in subsection (a) shall include--
            ``(1) renewable energy development and transmission;
            ``(2) transportation planning and economic development;
            ``(3) information technology;
            ``(4) movement of freight and individuals within the 
        region;
            ``(5) federally-funded research at institutions of higher 
        education; and
            ``(6) conservation land management.''.
            (2) Conforming amendments.--
                    (A) Section 383B(c)(3)(B) of the Consolidated Farm 
                and Rural Development Act (7 U.S.C. 2009bb-1(c)(3)(B)) 
                is amended by striking ``383I'' and inserting ``383J''.
                    (B) Section 383D(a) of the Consolidated Farm and 
                Rural Development Act (as redesignated by paragraph 
                (1)(A)) is amended by striking ``383I'' and inserting 
                ``383J''.
                    (C) Section 383E of the Consolidated Farm and Rural 
                Development Act (as so redesignated) is amended--
                            (i) in subsection (b)(1), by striking 
                        ``383F(b)'' and inserting ``383G(b)''; and
                            (ii) in subsection (c)(2)(A), by striking 
                        ``383I'' and inserting ``383J''.
                    (D) Section 383G of the Consolidated Farm and Rural 
                Development Act (as so redesignated) is amended--
                            (i) in subsection (b)--
                                    (I) in paragraph (1), by striking 
                                ``383M'' and inserting ``383N''; and
                                    (II) in paragraph (2), by striking 
                                ``383D(b)'' and inserting ``383E(b)'';
                            (ii) in subsection (c)(2)(A), by striking 
                        ``383E(b)'' and inserting ``383F(b)''; and
                            (iii) in subsection (d)--
                                    (I) by striking ``383M'' and 
                                inserting ``383N''; and
                                    (II) by striking ``383C(a)'' and 
                                inserting ``383D(a)''.
                    (E) Section 383J(c)(2) of the Consolidated Farm and 
                Rural Development Act (as so redesignated) is amended 
                by striking ``383H'' and inserting ``383I''.
    (d) Economic and Community Development Grants.--Section 383D of the 
Consolidated Farm and Rural Development Act (as redesignated by 
subsection (c)(1)(A)) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``transportation 
                and telecommunication'' and inserting ``transportation, 
                renewable energy transmission, and telecommunication''; 
                and
                    (B) by redesignating paragraphs (1) and (2) as 
                paragraphs (2) and (1), respectively, and moving those 
                paragraphs so as to appear in numerical order; and
            (2) in subsection (b)(2), by striking ``the activities in 
        the following order or priority'' and inserting ``the following 
        activities''.
    (e) Supplements to Federal Grant Programs.--Section 383E(a) of the 
Consolidated Farm and Rural Development Act (as redesignated by 
subsection (c)(1)(A)) is amended by striking ``, including local 
development districts,''.
    (f) Multistate and Local Development Districts and Organizations 
and Northern Great Plains Inc.--Section 383F of the Consolidated Farm 
and Rural Development Act (as redesignated by subsection (c)(1)(A)) is 
amended--
            (1) by striking the section heading and inserting 
        ``multistate and local development districts and organizations 
        and northern great plains inc.''; and
            (2) by striking subsections (a) through (c) and inserting 
        the following:
    ``(a) Definition of Multistate and Local Development District or 
Organization.--In this section, the term `multistate and local 
development district or organization' means an entity--
            ``(1) that--
                    ``(A) is a planning district in existence on the 
                date of enactment of this subtitle that is recognized 
                by the Economic Development Administration of the 
                Department of Commerce; or
                    ``(B) is--
                            ``(i) organized and operated in a manner 
                        that ensures broad-based community 
                        participation and an effective opportunity for 
                        other nonprofit groups to contribute to the 
                        development and implementation of programs in 
                        the region;
                            ``(ii) a nonprofit incorporated body 
                        organized or chartered under the law of the 
                        State in which the entity is located;
                            ``(iii) a nonprofit agency or 
                        instrumentality of a State or local government;
                            ``(iv) a public organization established 
                        before the date of enactment of this subtitle 
                        under State law for creation of 
                        multijurisdictional, area-wide planning 
                        organizations;
                            ``(v) a nonprofit agency or instrumentality 
                        of a State that was established for the purpose 
                        of assisting with multistate cooperation; or
                            ``(vi) a nonprofit association or 
                        combination of bodies, agencies, and 
                        instrumentalities described in clauses (ii) 
                        through (v); and
            ``(2) that has not, as certified by the Authority (in 
        consultation with the Federal cochairperson or Secretary, as 
        appropriate)--
                    ``(A) inappropriately used Federal grant funds from 
                any Federal source; or
                    ``(B) appointed an officer who, during the period 
                in which another entity inappropriately used Federal 
                grant funds from any Federal source, was an officer of 
                the other entity.
    ``(b) Grants to Multistate, Local, or Regional Development 
Districts and Organizations.--
            ``(1) In general.--The Authority may make grants for 
        administrative expenses under this section to multistate, 
        local, and regional development districts and organizations.
            ``(2) Conditions for grants.--
                    ``(A) Maximum amount.--The amount of any grant 
                awarded under paragraph (1) shall not exceed 80 percent 
                of the administrative expenses of the multistate, 
                local, or regional development district or organization 
                receiving the grant.
                    ``(B) Maximum period.--No grant described in 
                paragraph (1) shall be awarded for a period greater 
                than 3 years.
            ``(3) Local share.--The contributions of a multistate, 
        local, or regional development district or organization for 
        administrative expenses may be in cash or in kind, fairly 
        evaluated, including space, equipment, and services.
    ``(c) Duties.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        local development district shall operate as a lead organization 
        serving multicounty areas in the region at the local level.
            ``(2) Designation.--The Federal cochairperson may designate 
        an Indian tribe or multijurisdictional organization to serve as 
        a lead organization in such cases as the Federal cochairperson 
        or Secretary, as appropriate, determines appropriate.''.
    (g) Distressed Counties and Areas and Nondistressed Counties.--
Section 383G of the Consolidated Farm and Rural Development Act (as 
redesignated by subsection (c)(1)(A)) is amended--
            (1) in subsection (b)(1), by striking ``75'' and inserting 
        ``50'';
            (2) by striking subsection (c);
            (3) by redesignating subsection (d) as subsection (c); and
            (4) in subsection (c) (as so redesignated)--
                    (A) in the subsection heading, by inserting 
                ``Renewable Energy,'' after``Telecommunication''; and
                    (B) by inserting ``, renewable energy,'' after 
                ``telecommunication,''.
    (h) Development Planning Process.--Section 383H of the Consolidated 
Farm and Rural Development Act (as redesignated by subsection 
(c)(1)(A)) is amended--
            (1) in subsection (c)(1), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) multistate, regional, and local development 
                districts and organizations; and''; and
            (2) in subsection (d)(1), by striking ``State and local 
        development districts'' and inserting ``multistate, regional, 
        and local development districts and organizations''.
    (i) Program Development Criteria.--Section 383I(a)(1) of the 
Consolidated Farm and Rural Development Act (as redesignated by 
subsection (c)(1)(A)) is amended by inserting ``multistate or'' before 
``regional''.
    (j) Authorization of Appropriations.--Section 383N(a) of the 
Consolidated Farm and Rural Development Act (as redesignated by 
subsection (c)(1)(A)) is amended by striking ``2002 through 2007'' and 
inserting ``2008 through 2012''.
    (k) Termination of Authority.--Section 383O of the Consolidated 
Farm and Rural Development Act (as redesignated by subsection 
(c)(1)(A)) is amended by striking ``2007'' and inserting ``2012''.

SEC. 6027. RURAL BUSINESS INVESTMENT PROGRAM.

    (a) Issuance and Guarantee of Trust Certificates.--Section 
384F(b)(3)(A) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2009cc-5(b)(3)(A)) is amended by striking ``In the event'' and 
inserting the following:
                            ``(i) Authority to prepay.--A debenture may 
                        be prepaid at any time without penalty.
                            ``(ii) Reduction of guarantee.--Subject to 
                        clause (i), if''.
    (b) Fees.--Section 384G of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2009cc-6) is amended--
            (1) in subsection (a), by striking ``such fees as the 
        Secretary considers appropriate'' and inserting ``a fee that 
        does not exceed $500'';
            (2) in subsection (b), by striking ``approved by the 
        Secretary'' and inserting ``that does not exceed $500''; and
            (3) in subsection (c)--
                    (A) in paragraph (1), by striking ``The'' and 
                inserting ``Except as provided in paragraph (3), the'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (B), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(C) shall not exceed $500 for any fee collected 
                under this subsection.''; and
                    (C) by adding at the end the following:
            ``(3) Prohibition on collection of certain fees.--In the 
        case of a license described in paragraph (1) that was approved 
        before July 1, 2007, the Secretary shall not collect any fees 
        due on or after the date of enactment of this paragraph.''.
    (c) Rural Business Investment Companies.--Section 384I(c) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-8(c)) is 
amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following:
            ``(3) Time frame.--Each rural business investment company 
        shall have a period of 2 years to meet the capital requirements 
        of this subsection.''.
    (d) Financial Institution Investments.--Section 384J of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-9) is 
amended--
            (1) in subsection (a)(1), by inserting ``, including an 
        investment pool created entirely by such bank or savings 
        association'' before the period at the end; and
            (2) in subsection (c), by striking ``15'' and inserting 
        ``25''.
    (e) Contracting of Functions.--Section 384Q of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 2009cc-16) is repealed.
    (f) Funding.--The Consolidated Farm and Rural Development Act is 
amended by striking section 384S (7 U.S.C. 2009cc-18) and inserting the 
following:

``SEC. 384S. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this subtitle 
$50,000,000 for the period of fiscal years 2008 through 2012.''.

SEC. 6028. RURAL COLLABORATIVE INVESTMENT PROGRAM.

    Subtitle I of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2009dd et seq.) is amended to read as follows:

          ``Subtitle I--Rural Collaborative Investment Program

``SEC. 385A. PURPOSE.

    ``The purpose of this subtitle is to establish a regional rural 
collaborative investment program--
            ``(1) to provide rural regions with a flexible investment 
        vehicle, allowing for local control with Federal oversight, 
        assistance, and accountability;
            ``(2) to provide rural regions with incentives and 
        resources to develop and implement comprehensive strategies for 
        achieving regional competitiveness, innovation, and prosperity;
            ``(3) to foster multisector community and economic 
        development collaborations that will optimize the asset-based 
        competitive advantages of rural regions with particular 
        emphasis on innovation, entrepreneurship, and the creation of 
        quality jobs;
            ``(4) to foster collaborations necessary to provide the 
        professional technical expertise, institutional capacity, and 
        economies of scale that are essential for the long-term 
        competitiveness of rural regions; and
            ``(5) to better use Department of Agriculture and other 
        Federal, State, and local governmental resources, and to 
        leverage those resources with private, nonprofit, and 
        philanthropic investments, in order to achieve measurable 
        community and economic prosperity, growth, and sustainability.

``SEC. 385B. DEFINITIONS.

    ``In this subtitle:
            ``(1) Benchmark.--The term `benchmark' means an annual set 
        of goals and performance measures established for the purpose 
        of assessing performance in meeting a regional investment 
        strategy of a Regional Board.
            ``(2) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            ``(3) National board.--The term `National Board' means the 
        National Rural Investment Board established under section 
        385C(c).
            ``(4) National institute.--The term `National Institute' 
        means the National Institute on Regional Rural Competitiveness 
        and Entrepreneurship established under section 385C(b)(2).
            ``(5) Regional board.--The term `Regional Board' means a 
        Regional Rural Investment Board described in section 385D(a).
            ``(6) Regional innovation grant.--The term `regional 
        innovation grant' means a grant made by the Secretary to a 
        certified Regional Board under section 385F.
            ``(7) Regional investment strategy grant.--The term 
        `regional investment strategy grant' means a grant made by the 
        Secretary to a certified Regional Board under section 385E.
            ``(8) Rural heritage.--
                    ``(A) In general.--The term `rural heritage' means 
                historic sites, structures, and districts.
                    ``(B) Inclusions.--The term `rural heritage' 
                includes historic rural downtown areas and main 
                streets, neighborhoods, farmsteads, scenic and historic 
                trails, heritage areas, and historic landscapes.

``SEC. 385C. ESTABLISHMENT AND ADMINISTRATION OF RURAL COLLABORATIVE 
              INVESTMENT PROGRAM.

    ``(a) Establishment.--The Secretary shall establish a Rural 
Collaborative Investment Program to support comprehensive regional 
investment strategies for achieving rural competitiveness.
    ``(b) Duties of Secretary.--In carrying out this subtitle, the 
Secretary shall--
            ``(1) appoint and provide administrative and program 
        support to the National Board;
            ``(2) establish a national institute, to be known as the 
        `National Institute on Regional Rural Competitiveness and 
        Entrepreneurship', to provide technical assistance to the 
        Secretary and the National Board regarding regional 
        competitiveness and rural entrepreneurship, including technical 
        assistance for--
                    ``(A) the development of rigorous analytic programs 
                to assist Regional Boards in determining the challenges 
                and opportunities that need to be addressed to receive 
                the greatest regional competitive advantage;
                    ``(B) the provision of support for best practices 
                developed by the Regional Boards;
                    ``(C) the establishment of programs to support the 
                development of appropriate governance and leadership 
                skills in the applicable regions; and
                    ``(D) the evaluation of the progress and 
                performance of the Regional Boards in achieving 
                benchmarks established in a regional investment 
                strategy;
            ``(3) work with the National Board to develop a national 
        rural investment plan that shall--
                    ``(A) create a framework to encourage and support a 
                more collaborative and targeted rural investment 
                portfolio in the United States;
                    ``(B) establish a Rural Philanthropic Initiative, 
                to work with rural communities to create and enhance 
                the pool of permanent philanthropic resources committed 
                to rural community and economic development;
                    ``(C) cooperate with the Regional Boards and State 
                and local governments, organizations, and entities to 
                ensure investment strategies are developed that take 
                into consideration existing rural assets; and
                    ``(D) encourage the organization of Regional 
                Boards;
            ``(4) certify the eligibility of Regional Boards to receive 
        regional investment strategy grants and regional innovation 
        grants;
            ``(5) provide grants for Regional Boards to develop and 
        implement regional investment strategies;
            ``(6) provide technical assistance to Regional Boards on 
        issues, best practices, and emerging trends relating to rural 
        development, in cooperation with the National Rural Investment 
        Board; and
            ``(7) provide analytic and programmatic support for 
        regional rural competitiveness through the National Institute, 
        including--
                    ``(A) programs to assist Regional Boards in 
                determining the challenges and opportunities that must 
                be addressed to receive the greatest regional 
                competitive advantage;
                    ``(B) support for best practices development by the 
                regional investment boards;
                    ``(C) programs to support the development of 
                appropriate governance and leadership skills in the 
                region; and
                    ``(D) a review and evaluation of the performance of 
                the Regional Boards (including progress in achieving 
                benchmarks established in a regional investment 
                strategy) in an annual report submitted to--
                            ``(i) the Committee on Agriculture of the 
                        House of Representatives; and
                            ``(ii) the Committee on Agriculture, 
                        Nutrition, and Forestry of the Senate.
    ``(c) National Rural Investment Board.--The Secretary shall 
establish within the Department of Agriculture a board to be known as 
the `National Rural Investment Board'.
    ``(d) Duties of National Board.--The National Board shall--
            ``(1) not later than 180 days after the date of 
        establishment of the National Board, develop rules relating to 
        the operation of the National Board; and
            ``(2) provide advice to--
                    ``(A) the Secretary and subsequently review the 
                design, development, and execution of the National 
                Rural Investment Plan;
                    ``(B) Regional Boards on issues, best practices, 
                and emerging trends relating to rural development; and
                    ``(C) the Secretary and the National Institute on 
                the development and execution of the program under this 
                subtitle.
    ``(e) Membership.--
            ``(1) In general.--The National Board shall consist of 14 
        members appointed by the Secretary not later than 180 days 
        after the date of enactment of the Food, Conservation, and 
        Energy Act of 2008.
            ``(2) Supervision.--The National Board shall be subject to 
        the general supervision and direction of the Secretary.
            ``(3) Sectors represented.--The National Board shall 
        consist of representatives from each of--
                    ``(A) nationally recognized entrepreneurship 
                organizations;
                    ``(B) regional strategy and development 
                organizations;
                    ``(C) community-based organizations;
                    ``(D) elected members of local governments;
                    ``(E) members of State legislatures;
                    ``(F) primary, secondary, and higher education, job 
                skills training, and workforce development 
                institutions;
                    ``(G) the rural philanthropic community;
                    ``(H) financial, lending, venture capital, 
                entrepreneurship, and other related institutions;
                    ``(I) private sector business organizations, 
                including chambers of commerce and other for-profit 
                business interests;
                    ``(J) Indian tribes; and
                    ``(K) cooperative organizations.
            ``(4) Selection of members.--
                    ``(A) In general.--In selecting members of the 
                National Board, the Secretary shall consider 
                recommendations made by--
                            ``(i) the chairman and ranking member of 
                        each of the Committee on Agriculture of the 
                        House of Representatives and the Committee on 
                        Agriculture, Nutrition, and Forestry of the 
                        Senate;
                            ``(ii) the Majority Leader and Minority 
                        Leader of the Senate; and
                            ``(iii) the Speaker and Minority Leader of 
                        the House of Representatives.
                    ``(B) Ex-officio members.--In consultation with the 
                chairman and ranking member of each of the Committee on 
                Agriculture of the House of Representatives and the 
                Committee on Agriculture, Nutrition, and Forestry of 
                the Senate, the Secretary may appoint not more than 3 
                other officers or employees of the Executive Branch to 
                serve as ex-officio, nonvoting members of the National 
                Board.
            ``(5) Term of office.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                term of office of a member of the National Board 
                appointed under paragraph (1)(A) shall be for a period 
                of not more than 4 years.
                    ``(B) Staggered terms.--The members of the National 
                Board shall be appointed to serve staggered terms.
            ``(6) Initial appointments.--Not later than 1 year after 
        the date of enactment of the Food, Conservation, and Energy Act 
        of 2008, the Secretary shall appoint the initial members of the 
        National Board.
            ``(7) Vacancies.--A vacancy on the National Board shall be 
        filled in the same manner as the original appointment.
            ``(8) Compensation.--A member of the National Board shall 
        receive no compensation for service on the National Board, but 
        shall be reimbursed for related travel and other expenses 
        incurred in carrying out the duties of the member of the 
        National Board in accordance with section 5702 and 5703 of 
        title 5, United States Code.
            ``(9) Chairperson.--The National Board shall select a 
        chairperson from among the members of the National Board.
            ``(10) Federal status.--For purposes of Federal law, a 
        member of the National Board shall be considered a special 
        Government employee (as defined in section 202(a) of title 18, 
        United States Code).
    ``(f) Administrative Support.--The Secretary, on a reimbursable 
basis from funds made available under section 385H, may provide such 
administrative support to the National Board as the Secretary 
determines is necessary.

``SEC. 385D. REGIONAL RURAL INVESTMENT BOARDS.

    ``(a) In General.--A Regional Rural Investment Board shall be a 
multijurisdictional and multisectoral group that--
            ``(1) represents the long-term economic, community, and 
        cultural interests of a region;
            ``(2) is certified by the Secretary to establish a rural 
        investment strategy and compete for regional innovation grants;
            ``(3) is composed of residents of a region that are broadly 
        representative of diverse public, nonprofit, and private sector 
        interests in investment in the region, including (to the 
        maximum extent practicable) representatives of--
                    ``(A) units of local, multijurisdictional, or State 
                government, including not more than 1 representative 
                from each State in the region;
                    ``(B) nonprofit community-based development 
                organizations, including community development 
                financial institutions and community development 
                corporations;
                    ``(C) agricultural, natural resource, and other 
                asset-based related industries;
                    ``(D) in the case of regions with federally 
                recognized Indian tribes, Indian tribes;
                    ``(E) regional development organizations;
                    ``(F) private business organizations, including 
                chambers of commerce;
                    ``(G)(i) institutions of higher education (as 
                defined in section 101(a) of the Higher Education Act 
                of 1965 (20 U.S.C. 1001(a)));
                    ``(ii) tribally controlled colleges or universities 
                (as defined in section 2(a) of Tribally Controlled 
                College or University Assistance Act of 1978 (25 U.S.C. 
                1801(a))); and
                    ``(iii) tribal technical institutions;
                    ``(H) workforce and job training organizations;
                    ``(I) other entities and organizations, as 
                determined by the Regional Board;
                    ``(J) cooperatives; and
                    ``(K) consortia of entities and organizations 
                described in subparagraphs (A) through (J);
            ``(4) represents a region inhabited by--
                    ``(A) more than 25,000 individuals, as determined 
                in the latest available decennial census conducted 
                under section 141(a) of title 13, United States Code; 
                or
                    ``(B) in the case of a region with a population 
                density of less than 2 individuals per square mile, at 
                least 10,000 individuals, as determined in that latest 
                available decennial census;
            ``(5) has a membership of which not less than 25 percent, 
        nor more than 40 percent, represents--
                    ``(A) units of local government and Indian tribes 
                described in subparagraphs (A) and (D) of paragraph 
                (3);
                    ``(B) nonprofit community and economic development 
                organizations and institutions of higher education 
                described in subparagraphs (B) and (G) of paragraph 
                (3); or
                    ``(C) private business (including chambers of 
                commerce and cooperatives) and agricultural, natural 
                resource, and other asset-based related industries 
                described in subparagraphs (C) and (F) of paragraph 
                (3);
            ``(6) has a membership that may include an officer or 
        employee of a Federal agency, serving as an ex-officio, 
        nonvoting member of the Regional Board to represent the agency; 
        and
            ``(7) has organizational documents that demonstrate that 
        the Regional Board will--
                    ``(A) create a collaborative public-private 
                strategy process;
                    ``(B) develop, and submit to the Secretary for 
                approval, a regional investment strategy that meets the 
                requirements of section 385E, with benchmarks--
                            ``(i) to promote investment in rural areas 
                        through the use of grants made available under 
                        this subtitle; and
                            ``(ii) to provide financial and technical 
                        assistance to promote a broad-based regional 
                        development program aimed at increasing and 
                        diversifying economic growth, improved 
                        community facilities, and improved quality of 
                        life;
                    ``(C) implement the approved regional investment 
                strategy;
                    ``(D) provide annual reports to the Secretary and 
                the National Board on progress made in achieving the 
                benchmarks of the regional investment strategy, 
                including an annual financial statement; and
                    ``(E) select a non-Federal organization (such as a 
                regional development organization) in the local area 
                served by the Regional Board that has previous 
                experience in the management of Federal funds to serve 
                as fiscal manager of any funds of the Regional Board.
    ``(b) Urban Areas.--A resident of an urban area may serve as an ex-
officio member of a Regional Board.
    ``(c) Duties.--A Regional Board shall--
            ``(1) create a collaborative planning process for public-
        private investment within a region;
            ``(2) develop, and submit to the Secretary for approval, a 
        regional investment strategy;
            ``(3) develop approaches that will create permanent 
        resources for philanthropic giving in the region, to the 
        maximum extent practicable;
            ``(4) implement an approved strategy; and
            ``(5) provide annual reports to the Secretary and the 
        National Board on progress made in achieving the strategy, 
        including an annual financial statement.

``SEC. 385E. REGIONAL INVESTMENT STRATEGY GRANTS.

    ``(a) In General.--The Secretary shall make regional investment 
strategy grants available to Regional Boards for use in developing, 
implementing, and maintaining regional investment strategies.
    ``(b) Regional Investment Strategy.--A regional investment strategy 
shall provide--
            ``(1) an assessment of the competitive advantage of a 
        region, including--
                    ``(A) an analysis of the economic conditions of the 
                region;
                    ``(B) an assessment of the current economic 
                performance of the region;
                    ``(C) an overview of the population, geography, 
                workforce, transportation system, resources, 
                environment, and infrastructure needs of the region; 
                and
                    ``(D) such other pertinent information as the 
                Secretary may request;
            ``(2) an analysis of regional economic and community 
        development challenges and opportunities, including--
                    ``(A) incorporation of relevant material from other 
                government-sponsored or supported plans and consistency 
                with applicable State, regional, and local workforce 
                investment strategies or comprehensive economic 
                development plans; and
                    ``(B) an identification of past, present, and 
                projected Federal and State economic and community 
                development investments in the region;
            ``(3) a section describing goals and objectives necessary 
        to solve regional competitiveness challenges and meet the 
        potential of the region;
            ``(4) an overview of resources available in the region for 
        use in--
                    ``(A) establishing regional goals and objectives;
                    ``(B) developing and implementing a regional action 
                strategy;
                    ``(C) identifying investment priorities and funding 
                sources; and
                    ``(D) identifying lead organizations to execute 
                portions of the strategy;
            ``(5) an analysis of the current state of collaborative 
        public, private, and nonprofit participation and investment, 
        and of the strategic roles of public, private, and nonprofit 
        entities in the development and implementation of the regional 
        investment strategy;
            ``(6) a section identifying and prioritizing vital 
        projects, programs, and activities for consideration by the 
        Secretary, including--
                    ``(A) other potential funding sources; and
                    ``(B) recommendations for leveraging past and 
                potential investments;
            ``(7) a plan of action to implement the goals and 
        objectives of the regional investment strategy;
            ``(8) a list of performance measures to be used to evaluate 
        implementation of the regional investment strategy, including--
                    ``(A) the number and quality of jobs, including 
                self-employment, created during implementation of the 
                regional rural investment strategy;
                    ``(B) the number and types of investments made in 
                the region;
                    ``(C) the growth in public, private, and nonprofit 
                investment in the human, community, and economic assets 
                of the region;
                    ``(D) changes in per capita income and the rate of 
                unemployment; and
                    ``(E) other changes in the economic environment of 
                the region;
            ``(9) a section outlining the methodology for use in 
        integrating the regional investment strategy with the economic 
        priorities of the State; and
            ``(10) such other information as the Secretary determines 
        to be appropriate.
    ``(c) Maximum Amount of Grant.--A regional investment strategy 
grant shall not exceed $150,000.
    ``(d) Cost Sharing.--
            ``(1) In general.--Subject to paragraph (2), of the share 
        of the costs of developing, maintaining, evaluating, 
        implementing, and reporting with respect to a regional 
        investment strategy funded by a grant under this section--
                    ``(A) not more than 40 percent may be paid using 
                funds from the grant; and
                    ``(B) the remaining share shall be provided by the 
                applicable Regional Board or other eligible grantee.
            ``(2) Form.--A Regional Board or other eligible grantee 
        shall pay the share described in paragraph (1)(B) in the form 
        of cash, services, materials, or other in-kind contributions, 
        on the condition that not more than 50 percent of that share is 
        provided in the form of services, materials, and other in-kind 
        contributions.

``SEC. 385F. REGIONAL INNOVATION GRANTS PROGRAM.

    ``(a) Grants.--
            ``(1) In general.--The Secretary shall provide, on a 
        competitive basis, regional innovation grants to Regional 
        Boards for use in implementing projects and initiatives that 
        are identified in a regional rural investment strategy approved 
        under section 385E.
            ``(2) Timing.--After October 1, 2008, the Secretary shall 
        provide awards under this section on a quarterly funding cycle.
    ``(b) Eligibility.--To be eligible to receive a regional innovation 
grant, a Regional Board shall demonstrate to the Secretary that--
            ``(1) the regional rural investment strategy of a Regional 
        Board has been reviewed by the National Board prior to approval 
        by the Secretary;
            ``(2) the management and organizational structure of the 
        Regional Board is sufficient to oversee grant projects, 
        including management of Federal funds; and
            ``(3) the Regional Board has a plan to achieve, to the 
        maximum extent practicable, the performance-based benchmarks of 
        the project in the regional rural investment strategy.
    ``(c) Limitations.--
            ``(1) Amount received.--A Regional Board may not receive 
        more than $6,000,000 in regional innovation grants under this 
        section during any 5-year period.
            ``(2) Determination of amount.--The Secretary shall 
        determine the amount of a regional innovation grant based on--
                    ``(A) the needs of the region being addressed by 
                the applicable regional rural investment strategy 
                consistent with the purposes described in subsection 
                (f)(2); and
                    ``(B) the size of the geographical area of the 
                region.
            ``(3) Geographic diversity.--The Secretary shall ensure 
        that not more than 10 percent of funding made available under 
        this section is provided to Regional Boards in any State.
    ``(d) Cost-Sharing.--
            ``(1) Limitation.--Subject to paragraph (2), the amount of 
        a grant made under this section shall not exceed 50 percent of 
        the cost of the project.
            ``(2) Waiver of grantee share.--The Secretary may waive the 
        limitation in paragraph (1) under special circumstances, as 
        determined by the Secretary, including--
                    ``(A) a sudden or severe economic dislocation;
                    ``(B) significant chronic unemployment or poverty;
                    ``(C) a natural disaster; or
                    ``(D) other severe economic, social, or cultural 
                duress.
            ``(3) Other federal assistance.--For the purpose of 
        determining cost-share limitations for any other Federal 
        program, funds provided under this section shall be considered 
        to be non-Federal funds.
    ``(e) Preferences.--In providing regional innovation grants under 
this section, the Secretary shall give--
            ``(1) a high priority to strategies that demonstrate 
        significant leverage of capital and quality job creation; and
            ``(2) a preference to an application proposing projects and 
        initiatives that would--
                    ``(A) advance the overall regional competitiveness 
                of a region;
                    ``(B) address the priorities of a regional rural 
                investment strategy, including priorities that--
                            ``(i) promote cross-sector collaboration, 
                        public-private partnerships, or the provision 
                        of interim financing or seed capital for 
                        program implementation;
                            ``(ii) exhibit collaborative innovation and 
                        entrepreneurship, particularly within a public-
                        private partnership; and
                            ``(iii) represent a broad coalition of 
                        interests described in section 385D(a);
                    ``(C) include a strategy to leverage public non-
                Federal and private funds and existing assets, 
                including agricultural, natural resource, and public 
                infrastructure assets, with substantial emphasis placed 
                on the existence of real financial commitments to 
                leverage available funds;
                    ``(D) create quality jobs;
                    ``(E) enhance the role, relevance, and leveraging 
                potential of community and regional foundations in 
                support of regional investment strategies;
                    ``(F) demonstrate a history, or involve 
                organizations with a history, of successful leveraging 
                of capital for economic development and public 
                purposes;
                    ``(G) address gaps in existing basic services, 
                including technology, within a region;
                    ``(H) address economic diversification, including 
                agricultural and non-agriculturally based economies, 
                within a regional framework;
                    ``(I) improve the overall quality of life in the 
                region;
                    ``(J) enhance the potential to expand economic 
                development successes across diverse stakeholder groups 
                within the region;
                    ``(K) include an effective working relationship 
                with 1 or more institutions of higher education, 
                tribally controlled colleges or universities, or tribal 
                technical institutions;
                    ``(L) help to meet the other regional 
                competitiveness needs identified by a Regional Board; 
                or
                    ``(M) protect and promote rural heritage.
    ``(f) Uses.--
            ``(1) Leverage.--A Regional Board shall prioritize projects 
        and initiatives carried out using funds from a regional 
        innovation grant provided under this section, based in part on 
        the degree to which members of the Regional Board are able to 
        leverage additional funds for the implementation of the 
        projects.
            ``(2) Purposes.--A Regional Board may use a regional 
        innovation grant--
                    ``(A) to support the development of critical 
                infrastructure (including technology deployment and 
                services) necessary to facilitate the competitiveness 
                of a region;
                    ``(B) to provide assistance to entities within the 
                region that provide essential public and community 
                services;
                    ``(C) to enhance the value-added production, 
                marketing, and use of agricultural and natural 
                resources within the region, including activities 
                relating to renewable and alternative energy production 
                and usage;
                    ``(D) to assist with entrepreneurship, job 
                training, workforce development, housing, educational, 
                or other quality of life services or needs, relating to 
                the development and maintenance of strong local and 
                regional economies;
                    ``(E) to assist in the development of unique new 
                collaborations that link public, private, and 
                philanthropic resources, including community 
                foundations;
                    ``(F) to provide support for business and 
                entrepreneurial investment, strategy, expansion, and 
                development, including feasibility strategies, 
                technical assistance, peer networks, business 
                development funds, and other activities to strengthen 
                the economic competitiveness of the region;
                    ``(G) to provide matching funds to enable community 
                foundations located within the region to build 
                endowments which provide permanent philanthropic 
                resources to implement a regional investment strategy; 
                and
                    ``(H) to preserve and promote rural heritage.
            ``(3) Availability of funds.--The funds made available to a 
        Regional Board or any other eligible grantee through a regional 
        innovation grant shall remain available for the 7-year period 
        beginning on the date on which the award is provided, on the 
        condition that the Regional Board or other grantee continues to 
        be certified by the Secretary as making adequate progress 
        toward achieving established benchmarks.
    ``(g) Cost Sharing.--
            ``(1) Waiver of grantee share.--The Secretary may waive the 
        share of a grantee of the costs of a project funded by a 
        regional innovation grant under this section if the Secretary 
        determines that such a waiver is appropriate, including with 
        respect to special circumstances within tribal regions, in the 
        event an area experiences--
                    ``(A) a sudden or severe economic dislocation;
                    ``(B) significant chronic unemployment or poverty;
                    ``(C) a natural disaster; or
                    ``(D) other severe economic, social, or cultural 
                duress.
            ``(2) Other federal programs.--For the purpose of 
        determining cost-sharing requirements for any other Federal 
        program, funds provided as a regional innovation grant under 
        this section shall be considered to be non-Federal funds.
    ``(h) Noncompliance.--If a Regional Board or other eligible grantee 
fails to comply with any requirement relating to the use of funds 
provided under this section, the Secretary may--
            ``(1) take such actions as are necessary to obtain 
        reimbursement of unused grant funds; and
            ``(2) reprogram the recaptured funds for purposes relating 
        to implementation of this subtitle.
    ``(i) Priority to Areas With Awards and Approved Strategies.--
            ``(1) In general.--Subject to paragraph (3), in providing 
        rural development assistance under other programs, the 
        Secretary shall give a high priority to areas that receive 
        innovation grants under this section.
            ``(2) Consultation.--The Secretary shall consult with the 
        heads of other Federal agencies to promote the development of 
        priorities similar to those described in paragraph (1).
            ``(3) Exclusion of certain programs.--Paragraph (1) shall 
        not apply to the provision of rural development assistance 
        under any program relating to basic health, safety, or 
        infrastructure, including broadband deployment or minimum 
        environmental needs.

``SEC. 385G. RURAL ENDOWMENT LOANS PROGRAM.

    ``(a) In General.--The Secretary may provide long-term loans to 
eligible community foundations to assist in the implementation of 
regional investment strategies.
    ``(b) Eligible Community Foundations.--To be eligible to receive a 
loan under this section, a community foundation shall--
            ``(1) be located in an area that is covered by a regional 
        investment strategy;
            ``(2) match the amount of the loan with an amount that is 
        at least 250 percent of the amount of the loan; and
            ``(3) use the loan and the matching amount to carry out the 
        regional investment strategy in a manner that is targeted to 
        community and economic development, including through the 
        development of community foundation endowments.
    ``(c) Terms.--A loan made under this section shall--
            ``(1) have a term of not less than 10, nor more than 20, 
        years;
            ``(2) bear an interest rate of 1 percent per annum; and
            ``(3) be subject to such other terms and conditions as are 
        determined appropriate by the Secretary.

``SEC. 385H. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subtitle $135,000,000 for the period of fiscal years 2009 through 
2012.''.

SEC. 6029. FUNDING OF PENDING RURAL DEVELOPMENT LOAN AND GRANT 
              APPLICATIONS.

    (a) Definition of Application.--In this section, the term 
``application'' does not include an application for a loan or grant 
that, as of the date of enactment of this Act, is in the preapplication 
phase of consideration under regulations of the Secretary in effect on 
the date of enactment of this Act.
    (b) Use of Funds.--Subject to subsection (c), the Secretary shall 
use funds made available under subsection (d) to provide funds for 
applications that are pending on the date of enactment of this Act 
for--
            (1) water or waste disposal grants or direct loans under 
        paragraph (1) or (2) of section 306(a) of the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 1926(a)); and
            (2) emergency community water assistance grants under 
        section 306A of that Act (7 U.S.C. 1926a).
    (c) Limitations.--
            (1) Appropriated amounts.--Funds made available under this 
        section shall be available to the Secretary to provide funds 
        for applications for loans and grants described in subsection 
        (b) that are pending on the date of enactment of this Act only 
        to the extent that funds for the loans and grants appropriated 
        in the annual appropriations Act for fiscal year 2007 have been 
        exhausted.
            (2) Program requirements.--The Secretary may use funds made 
        available under this section to provide funds for a pending 
        application for a loan or grant described in subsection (b) 
        only if the Secretary processes, reviews, and approves the 
        application in accordance with regulations in effect on the 
        date of enactment of this Act.
            (3) Priority.--In providing funding under this section for 
        pending applications for loans or grants described in 
        subsection (b), the Secretary shall provide funding in the 
        following order of priority (until funds made available under 
        this section are exhausted):
                    (A) Pending applications for water systems.
                    (B) Pending applications for waste disposal 
                systems.
    (d) Funding.--Notwithstanding any other provision of law, of the 
funds of the Commodity Credit Corporation, the Secretary shall use to 
carry out this section $120,000,000, to remain available until 
expended.

             Subtitle B--Rural Electrification Act of 1936

SEC. 6101. ENERGY EFFICIENCY PROGRAMS.

    Sections 2(a) and 4 of the Rural Electrification Act of 1936 (7 
U.S.C. 902(a), 904) are amended by inserting ``efficiency and'' before 
``conservation'' each place it appears.

SEC. 6102. REINSTATEMENT OF RURAL UTILITY SERVICES DIRECT LENDING.

    (a) In General.--Section 4 of the Rural Electrification Act of 1936 
(7 U.S.C. 904) is amended--
            (1) by designating the first, second, and third sentences 
        as subsections (a), (b), and (d), respectively; and
            (2) by inserting after subsection (b) (as so designated) 
        the following:
    ``(c) Direct Loans.--
            ``(1) Direct hardship loans.--Direct hardship loans under 
        this section shall be for the same purposes and on the same 
        terms and conditions as hardship loans made under section 
        305(c)(1).
            ``(2) Other direct loans.--All other direct loans under 
        this section shall bear interest at a rate equal to the then 
        current cost of money to the Government of the United States 
        for loans of similar maturity, plus \1/8\ of 1 percent.''.
    (b) Elimination of Federal Financing Bank Guaranteed Loans.--
Section 306 of the Rural Electrification Act of 1936 (7 U.S.C. 936) is 
amended--
            (1) in the third sentence, by striking ``guarantee, 
        accommodation, or subordination'' and inserting ``accommodation 
        or subordination''; and
            (2) by striking the fourth sentence.

SEC. 6103. DEFERMENT OF PAYMENTS TO ALLOWS LOANS FOR IMPROVED ENERGY 
              EFFICIENCY AND DEMAND REDUCTION AND FOR ENERGY EFFICIENCY 
              AND USE AUDITS.

    Section 12 of the Rural Electrification Act of 1936 (7 U.S.C. 912) 
is amended by adding at the end the following:
    ``(c) Deferment of Payments on Loans.--
            ``(1) In general.--The Secretary shall allow borrowers to 
        defer payment of principal and interest on any direct loan made 
        under this Act to enable the borrower to make loans to 
        residential, commercial, and industrial consumers--
                    ``(A) to conduct energy efficiency and use audits; 
                and
                    ``(B) to install energy efficient measures or 
                devices that reduce the demand on electric systems.
            ``(2) Amount.--The total amount of a deferment under this 
        subsection shall not exceed the sum of the principal and 
        interest on the loans made to a customer of the borrower, as 
        determined by the Secretary.
            ``(3) Term.--The term of a deferment under this subsection 
        shall not exceed 60 months.''.

SEC. 6104. RURAL ELECTRIFICATION ASSISTANCE.

    Section 13 of the Rural Electrification Act of 1936 (7 U.S.C. 913) 
is amended to read as follows:

``SEC. 13. DEFINITIONS.

    ``In this Act:
            ``(1) Farm.--The term `farm' means a farm, as defined by 
        the Bureau of the Census.
            ``(2) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            ``(3) Rural area.--Except as provided otherwise in this 
        Act, the term `rural area' means the farm and nonfarm 
        population of--
                    ``(A) any area described in section 343(a)(13)(C) 
                of the Consolidated Farm and Rural Development Act (7 
                U.S.C. 1991(a)(13)(C)); and
                    ``(B) any area within a service area of a borrower 
                for which a borrower has an outstanding loan made under 
                titles I through V as of the date of enactment of this 
                paragraph.
            ``(4) Territory.--The term `territory' includes any insular 
        possession of the United States.
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.''.

SEC. 6105. SUBSTANTIALLY UNDERSERVED TRUST AREAS.

    The Rural Electrification Act of 1936 is amended by inserting after 
section 306E (7 U.S.C. 936e) the following:

``SEC. 306F. SUBSTANTIALLY UNDERSERVED TRUST AREAS.

    ``(a) Definitions.--In this section:
            ``(1) Eligible program.--The term `eligible program' means 
        a program administered by the Rural Utilities Service and 
        authorized in--
                    ``(A) this Act; or
                    ``(B) paragraph (1), (2), (14), (22), or (24) of 
                section 306(a) or section 306A, 306C, 306D, or 306E of 
                the Consolidated Farm and Rural Development Act (7 
                U.S.C. 1926(a), 1926a, 1926c, 1926d, 1926e).
            ``(2) Substantially underserved trust area.--The term 
        `substantially underserved trust area' means a community in 
        `trust land' (as defined in section 3765 of title 38, United 
        States Code) with respect to which the Secretary determines has 
        a high need for the benefits of an eligible program.
    ``(b) Initiative.--The Secretary, in consultation with local 
governments and Federal agencies, may implement an initiative to 
identify and improve the availability of eligible programs in 
communities in substantially underserved trust areas.
    ``(c) Authority of Secretary.--In carrying out subsection (b), the 
Secretary--
            ``(1) may make available from loan or loan guarantee 
        programs administered by the Rural Utilities Service to 
        qualified utilities or applicants financing with an interest 
        rate as low as 2 percent, and with extended repayment terms;
            ``(2) may waive nonduplication restrictions, matching fund 
        requirements, or credit support requirements from any loan or 
        grant program administered by the Rural Utilities Service to 
        facilitate the construction, acquisition, or improvement of 
        infrastructure;
            ``(3) may give the highest funding priority to designated 
        projects in substantially underserved trust areas; and
            ``(4) shall only make loans or loan guarantees that are 
        found to be financially feasible and that provide eligible 
        program benefits to substantially underserved trust areas.
    ``(d) Report.--Not later than 1 year after the date of enactment of 
this section and annually thereafter, the Secretary shall submit to 
Congress a report that describes--
            ``(1) the progress of the initiative implemented under 
        subsection (b); and
            ``(2) recommendations for any regulatory or legislative 
        changes that would be appropriate to improve services to 
        substantially underserved trust areas.''.

SEC. 6106. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR 
              TELEPHONE PURPOSES.

    (a) In General.--Section 313A of the Rural Electrification Act of 
1936 (7 U.S.C. 940c-1) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``for 
                electrification'' and all that follows through the end 
                and inserting ``for eligible electrification or 
                telephone purposes consistent with this Act.''; and
                    (B) by striking paragraph (4) and inserting the 
                following:
            ``(4) Annual amount.--The total amount of guarantees 
        provided by the Secretary under this section during a fiscal 
        year shall not exceed $1,000,000,000, subject to the 
        availability of funds under subsection (e).'';
            (2) in subsection (c), by striking paragraphs (2) and (3) 
        and inserting the following:
            ``(2) Amount.--
                    ``(A) In general.--The amount of the annual fee 
                paid for the guarantee of a bond or note under this 
                section shall be equal to 30 basis points of the amount 
                of the unpaid principal of the bond or note guaranteed 
                under this section.
                    ``(B) Prohibition.--Except as otherwise provided in 
                this subsection and subsection (e)(2), no other fees 
                shall be assessed.
            ``(3) Payment.--
                    ``(A) In general.--A lender shall pay the fees 
                required under this subsection on a semiannual basis.
                    ``(B) Structured schedule.--The Secretary shall, 
                with the consent of the lender, structure the schedule 
                for payment of the fee to ensure that sufficient funds 
                are available to pay the subsidy costs for note or bond 
                guarantees as provided for in subsection (e)(2).''; and
            (3) in subsection (f), by striking ``2007'' and inserting 
        ``2012''.
    (b) Administration.--The Secretary shall continue to carry out 
section 313A of the Rural Electrification Act of 1936 (7 U.S.C. 940c-1) 
in the same manner as on the day before the date of enactment of this 
Act, except without regard to the limitations prescribed in subsection 
(b)(1) of that section, until such time as any regulations necessary to 
carry out the amendments made by this section are fully implemented.

SEC. 6107. EXPANSION OF 911 ACCESS.

    Section 315 of the Rural Electrification Act of 1936 (7 U.S.C. 
940e) is amended to read as follows:

``SEC. 315. EXPANSION OF 911 ACCESS.

    ``(a) In General.--Subject to subsection (c) and such terms and 
conditions as the Secretary may prescribe, the Secretary may make loans 
under this title to entities eligible to borrow from the Rural 
Utilities Service, State or local governments, Indian tribes (as 
defined in section 4 of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450b)), or other public entities for 
facilities and equipment to expand or improve in rural areas--
            ``(1) 911 access;
            ``(2) integrated interoperable emergency communications, 
        including multiuse networks that provide commercial or 
        transportation information services in addition to emergency 
        communications services;
            ``(3) homeland security communications;
            ``(4) transportation safety communications; or
            ``(5) location technologies used outside an urbanized area.
    ``(b) Loan Security.--Government-imposed fees related to emergency 
communications (including State or local 911 fees) may be considered to 
be security for a loan under this section.
    ``(c) Emergency Communications Equipment Providers.--The Secretary 
may make a loan under this section to an emergency communication 
equipment provider to expand or improve 911 access or other 
communications or technologies described in subsection (a) if the local 
government that has jurisdiction over the project is not allowed to 
acquire the debt resulting from the loan.
    ``(d) Authorization of Appropriations.--The Secretary shall use to 
make loans under this section any funds otherwise made available for 
telephone loans for each of fiscal years 2008 through 2012.''.

SEC. 6108. ELECTRIC LOANS FOR RENEWABLE ENERGY.

    Title III of the Rural Electrification Act of 1936 is amended by 
inserting after section 316 (7 U.S.C. 940f) the following:

``SEC. 317. ELECTRIC LOANS FOR RENEWABLE ENERGY.

    ``(a) Definition of Renewable Energy Source.--In this section, the 
term `renewable energy source' means an energy conversion system fueled 
from a solar, wind, hydropower, biomass, or geothermal source of 
energy.
    ``(b) Loans.--In addition to any other funds or authorities 
otherwise made available under this Act, the Secretary may make 
electric loans under this title for electric generation from renewable 
energy resources for resale to rural and nonrural residents.
    ``(c) Rate.--The rate of a loan under this section shall be equal 
to the average tax-exempt municipal bond rate of similar maturities.''.

SEC. 6109. BONDING REQUIREMENTS.

    Title III of the Rural Electrification Act of 1936 is amended by 
inserting after section 317 (as added by section 6108) the following:

``SEC. 318. BONDING REQUIREMENTS.

    ``The Secretary shall review the bonding requirements for all 
programs administered by the Rural Utilities Service under this Act to 
ensure that bonds are not required if--
            ``(1) the interests of the Secretary are adequately 
        protected by product warranties; or
            ``(2) the costs or conditions associated with a bond exceed 
        the benefit of the bond.''.

SEC. 6110. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL 
              AREAS.

    (a) In General.--Section 601 of the Rural Electrification Act of 
1936 (7 U.S.C. 950bb) is amended to read as follows:

``SEC. 601. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL 
              AREAS.

    ``(a) Purpose.--The purpose of this section is to provide loans and 
loan guarantees to provide funds for the costs of the construction, 
improvement, and acquisition of facilities and equipment for broadband 
service in rural areas.
    ``(b) Definitions.--In this section:
            ``(1) Broadband service.--The term `broadband service' 
        means any technology identified by the Secretary as having the 
        capacity to transmit data to enable a subscriber to the service 
        to originate and receive high-quality voice, data, graphics, 
        and video.
            ``(2) Incumbent service provider.--The term `incumbent 
        service provider', with respect to an application submitted 
        under this section, means an entity that, as of the date of 
        submission of the application, is providing broadband service 
        to not less than 5 percent of the households in the service 
        territory proposed in the application.
            ``(3) Rural area.--
                    ``(A) In general.--The term `rural area' means any 
                area other than--
                            ``(i) an area described in clause (i) or 
                        (ii) of section 343(a)(13)(A) of the 
                        Consolidated Farm and Rural Development Act (7 
                        U.S.C. 1991(a)(13)(A)); and
                            ``(ii) a city, town, or incorporated area 
                        that has a population of greater than 20,000 
                        inhabitants.
                    ``(B) Urban area growth.--The Secretary may, by 
                regulation only, consider an area described in section 
                343(a)(13)(F)(i)(I) of that Act to not be a rural area 
                for purposes of this section.
    ``(c) Loans and Loan Guarantees.--
            ``(1) In general.--The Secretary shall make or guarantee 
        loans to eligible entities described in subsection (d) to 
        provide funds for the construction, improvement, or acquisition 
        of facilities and equipment for the provision of broadband 
        service in rural areas.
            ``(2) Priority.--In making or guaranteeing loans under 
        paragraph (1), the Secretary shall give the highest priority to 
        applicants that offer to provide broadband service to the 
        greatest proportion of households that, prior to the provision 
        of the broadband service, had no incumbent service provider.
    ``(d) Eligibility.--
            ``(1) Eligible entities.--
                    ``(A) In general.--To be eligible to obtain a loan 
                or loan guarantee under this section, an entity shall--
                            ``(i) demonstrate the ability to furnish, 
                        improve, or extend a broadband service to a 
                        rural area;
                            ``(ii) submit to the Secretary a loan 
                        application at such time, in such manner, and 
                        containing such information as the Secretary 
                        may require; and
                            ``(iii) agree to complete buildout of the 
                        broadband service described in the loan 
                        application by not later than 3 years after the 
                        initial date on which proceeds from the loan 
                        made or guaranteed under this section are made 
                        available.
                    ``(B) Limitation.--An eligible entity that provides 
                telecommunications or broadband service to at least 20 
                percent of the households in the United States may not 
                receive an amount of funds under this section for a 
                fiscal year in excess of 15 percent of the funds 
                authorized and appropriated under subsection (k) for 
                the fiscal year.
            ``(2) Eligible projects.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), the proceeds of a loan made 
                or guaranteed under this section may be used to carry 
                out a project in a proposed service territory only if, 
                as of the date on which the application for the loan or 
                loan guarantee is submitted--
                            ``(i) not less than 25 percent of the 
                        households in the proposed service territory is 
                        offered broadband service by not more than 1 
                        incumbent service provider; and
                            ``(ii) broadband service is not provided in 
                        any part of the proposed service territory by 3 
                        or more incumbent service providers.
                    ``(B) Exception to 25 percent requirement.--
                Subparagraph (A)(i) shall not apply to the proposed 
                service territory of a project if a loan or loan 
                guarantee has been made under this section to the 
                applicant to provide broadband service in the proposed 
                service territory.
                    ``(C) Exception to 3 or more incumbent service 
                provider requirement.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), subparagraph (A)(ii) shall not 
                        apply to an incumbent service provider that is 
                        upgrading broadband service to the existing 
                        territory of the incumbent service provider.
                            ``(ii) Exception.--Clause (i) shall not 
                        apply if the applicant is eligible for funding 
                        under another title of this Act.
            ``(3) Equity and market survey requirements.--
                    ``(A) In general.--The Secretary may require an 
                entity to provide a cost share in an amount not to 
                exceed 10 percent of the amount of the loan or loan 
                guarantee requested in the application of the entity, 
                unless the Secretary determines that a higher 
                percentage is required for financial feasibility.
                    ``(B) Market survey.--
                            ``(i) In general.--The Secretary may 
                        require an entity that proposes to have a 
                        subscriber projection of more than 20 percent 
                        of the broadband service market in a rural area 
                        to submit to the Secretary a market survey.
                            ``(ii) Less than 20 percent.--The Secretary 
                        may not require an entity that proposes to have 
                        a subscriber projection of less than 20 percent 
                        of the broadband service market in a rural area 
                        to submit to the Secretary a market survey.
            ``(4) State and local governments and indian tribes.--
        Subject to paragraph (1), a State or local government 
        (including any agency, subdivision, or instrumentality thereof 
        (including consortia thereof)) and an Indian tribe shall be 
        eligible for a loan or loan guarantee under this section to 
        provide broadband services to a rural area.
            ``(5) Notice requirement.--The Secretary shall publish a 
        notice of each application for a loan or loan guarantee under 
        this section describing the application, including--
                    ``(A) the identity of the applicant;
                    ``(B) each area proposed to be served by the 
                applicant; and
                    ``(C) the estimated number of households without 
                terrestrial-based broadband service in those areas.
            ``(6) Paperwork reduction.--The Secretary shall take steps 
        to reduce, to the maximum extent practicable, the cost and 
        paperwork associated with applying for a loan or loan guarantee 
        under this section by first-time applicants (particularly 
        first-time applicants who are small and start-up broadband 
        service providers), including by providing for a new 
        application that maintains the ability of the Secretary to make 
        an analysis of the risk associated with the loan involved.
            ``(7) Preapplication process.--The Secretary shall 
        establish a process under which a prospective applicant may 
        seek a determination of area eligibility prior to preparing a 
        loan application under this section.
    ``(e) Broadband Service.--
            ``(1) In general.--The Secretary shall, from time to time 
        as advances in technology warrant, review and recommend 
        modifications of rate-of-data transmission criteria for 
        purposes of the identification of broadband service 
        technologies under subsection (b)(1).
            ``(2) Prohibition.--The Secretary shall not establish 
        requirements for bandwidth or speed that have the effect of 
        precluding the use of evolving technologies appropriate for 
        rural areas.
    ``(f) Technological Neutrality.--For purposes of determining 
whether to make a loan or loan guarantee for a project under this 
section, the Secretary shall use criteria that are technologically 
neutral.
    ``(g) Terms and Conditions for Loans and Loan Guarantees.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, a loan or loan guarantee under this section shall--
                    ``(A) bear interest at an annual rate of, as 
                determined by the Secretary--
                            ``(i) in the case of a direct loan, a rate 
                        equivalent to--
                                    ``(I) the cost of borrowing to the 
                                Department of the Treasury for 
                                obligations of comparable maturity; or
                                    ``(II) 4 percent; and
                            ``(ii) in the case of a guaranteed loan, 
                        the current applicable market rate for a loan 
                        of comparable maturity; and
                    ``(B) have a term of such length, not exceeding 35 
                years, as the borrower may request, if the Secretary 
                determines that the loan is adequately secured.
            ``(2) Term.--In determining the term of a loan or loan 
        guarantee, the Secretary shall consider whether the recipient 
        is or would be serving an area that is not receiving broadband 
        services.
            ``(3) Recurring revenue.--The Secretary shall consider the 
        existing recurring revenues of the entity at the time of 
        application in determining an adequate level of credit support.
    ``(h) Adequacy of Security.--
            ``(1) In general.--The Secretary shall ensure that the type 
        and amount of, and method of security used to secure, any loan 
        or loan guarantee under this section is commensurate to the 
        risk involved with the loan or loan guarantee, particularly in 
        any case in which the loan or loan guarantee is issued to a 
        financially strong and stable entity, as determined by the 
        Secretary.
            ``(2) Determination of amount and method of security.--In 
        determining the amount of, and method of security used to 
        secure, a loan or loan guarantee under this section, the 
        Secretary shall consider reducing the security in a rural area 
        that does not have broadband service.
    ``(i) Use of Loan Proceeds to Refinance Loans for Deployment of 
Broadband Service.--Notwithstanding any other provision of this Act, 
the proceeds of any loan made or guaranteed by the Secretary under this 
Act may be used by the recipient of the loan for the purpose of 
refinancing an outstanding obligation of the recipient on another 
telecommunications loan made under this Act if the use of the proceeds 
for that purpose will support the construction, improvement, or 
acquisition of facilities and equipment for the provision of broadband 
service in rural areas.
    ``(j) Reports.--Not later than 1 year after the date of enactment 
of the Food, Conservation, and Energy Act of 2008, and annually 
thereafter, the Administrator shall submit to Congress a report that 
describes the extent of participation in the loan and loan guarantee 
program under this section for the preceding fiscal year, including a 
description of --
            ``(1) the number of loans applied for and provided under 
        this section;
            ``(2)(A) the communities proposed to be served in each loan 
        application submitted for the fiscal year; and
            ``(B) the communities served by projects funded by loans 
        and loan guarantees provided under this section;
            ``(3) the period of time required to approve each loan 
        application under this section;
            ``(4) any outreach activities carried out by the Secretary 
        to encourage entities in rural areas without broadband service 
        to submit applications under this section;
            ``(5) the method by which the Secretary determines that a 
        service enables a subscriber to originate and receive high-
        quality voice, data, graphics, and video for purposes of 
        subsection (b)(1); and
            ``(6) each broadband service, including the type and speed 
        of broadband service, for which assistance was sought, and each 
        broadband service for which assistance was provided, under this 
        section.
    ``(k) Funding.--
            ``(1) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out this section 
        $25,000,000 for each of fiscal years 2008 through 2012, to 
        remain available until expended.
            ``(2) Allocation of funds.--
                    ``(A) In general.--From amounts made available for 
                each fiscal year under this subsection, the Secretary 
                shall--
                            ``(i) establish a national reserve for 
                        loans and loan guarantees to eligible entities 
                        in States under this section; and
                            ``(ii) allocate amounts in the reserve to 
                        each State for each fiscal year for loans and 
                        loan guarantees to eligible entities in the 
                        State.
                    ``(B) Amount.--The amount of an allocation made to 
                a State for a fiscal year under subparagraph (A) shall 
                bear the same ratio to the amount of allocations made 
                for all States for the fiscal year as--
                            ``(i) the number of communities with a 
                        population of 2,500 inhabitants or less in the 
                        State; bears to
                            ``(ii) the number of communities with a 
                        population of 2,500 inhabitants or less in all 
                        States.
                    ``(C) Unobligated amounts.--Any amounts in the 
                reserve established for a State for a fiscal year under 
                subparagraph (B) that are not obligated by April 1 of 
                the fiscal year shall be available to the Secretary to 
                make loans and loan guarantees under this section to 
                eligible entities in any State, as determined by the 
                Secretary.
    ``(l) Termination of Authority.--No loan or loan guarantee may be 
made under this section after September 30, 2012.''.
    (b) Regulations.--The Secretary may implement the amendment made by 
subsection (a) through the promulgation of an interim regulation.
    (c) Application.--The amendment made by subsection (a) shall not 
apply to--
            (1) an application submitted under section 601 of the Rural 
        Electrification Act of 1936 (7 U.S.C. 950bb) (as it existed 
        before the amendment made by subsection (a)) that--
                    (A) was pending on the date that is 45 days prior 
                to the date of enactment of this Act; and
                    (B) is pending on the date of enactment of this 
                Act; or
            (2) a petition for reconsideration of a decision on an 
        application described in paragraph (1).

SEC. 6111. NATIONAL CENTER FOR RURAL TELECOMMUNICATIONS ASSESSMENT.

    Title VI of the Rural Electrification Act of 1936 (7 U.S.C. 950bb 
et seq.) is amended by adding at the end the following:

``SEC. 602. NATIONAL CENTER FOR RURAL TELECOMMUNICATIONS ASSESSMENT.

    ``(a) Designation of Center.--The Secretary shall designate an 
entity to serve as the National Center for Rural Telecommunications 
Assessment (referred to in this section as the `Center').
    ``(b) Criteria.--In designating the Center under subsection (a), 
the Secretary shall take into consideration the following criteria:
            ``(1) The Center shall be an entity that demonstrates to 
        the Secretary--
                    ``(A) a focus on rural policy research; and
                    ``(B) a minimum of 5 years of experience relating 
                to rural telecommunications research and assessment.
            ``(2) The Center shall be capable of assessing broadband 
        services in rural areas.
            ``(3) The Center shall have significant experience 
        involving other rural economic development centers and 
        organizations with respect to the assessment of rural policies 
        and the formulation of policy solutions at the Federal, State, 
        and local levels.
    ``(c) Board of Directors.--The Center shall be managed by a board 
of directors, which shall be responsible for the duties of the Center 
described in subsection (d).
    ``(d) Duties.--The Center shall--
            ``(1) assess the effectiveness of programs carried out 
        under this title in increasing broadband penetration and 
        purchase in rural areas, especially in rural communities 
        identified by the Secretary as having no broadband service 
        before the provision of a loan or loan guarantee under this 
        title;
            ``(2) work with existing rural development centers selected 
        by the Center to identify policies and initiatives at the 
        Federal, State, and local levels that have increased broadband 
        penetration and purchase in rural areas and provide 
        recommendations to Federal, State, and local policymakers on 
        effective strategies to bring affordable broadband services to 
        residents of rural areas, particularly residents located 
        outside of the municipal boundaries of a rural city or town; 
        and
            ``(3) develop and publish reports describing the activities 
        carried out by the Center under this section.
    ``(e) Reporting Requirements.--Not later than December 1 of each 
applicable fiscal year, the board of directors of the Center shall 
submit to Congress and the Secretary a report describing the activities 
carried out by the Center during the preceding fiscal year and the 
results of any research conducted by the Center during that fiscal 
year, including--
            ``(1) an assessment of each program carried out under this 
        title; and
            ``(2) an assessment of the effects of the policy 
        initiatives identified under subsection (d)(2).
    ``(f) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $1,000,000 for 
each of fiscal years 2008 through 2012.''.

SEC. 6112. COMPREHENSIVE RURAL BROADBAND STRATEGY.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Chairman of the Federal Communications Commission, in 
coordination with the Secretary, shall submit to Congress a report 
describing a comprehensive rural broadband strategy that includes--
            (1) recommendations--
                    (A) to promote interagency coordination of Federal 
                agencies in regards to policies, procedures, and 
                targeted resources, and to streamline or otherwise 
                improve and streamline the policies, programs, and 
                services;
                    (B) to coordinate existing Federal rural broadband 
                or rural initiatives;
                    (C) to address both short- and long-term needs 
                assessments and solutions for a rapid build-out of 
                rural broadband solutions and application of the 
                recommendations for Federal, State, regional, and local 
                government policymakers; and
                    (D) to identify how specific Federal agency 
                programs and resources can best respond to rural 
                broadband requirements and overcome obstacles that 
                currently impede rural broadband deployment; and
            (2) a description of goals and timeframes to achieve the 
        purposes of the report.
    (b) Updates.--The Chairman of the Federal Communications 
Commission, in coordination with the Secretary, shall update and 
evaluate the report described in subsection (a) during the third year 
after the date of enactment of this Act.

SEC. 6113. STUDY ON RURAL ELECTRIC POWER GENERATION.

    (a) In General.--The Secretary shall conduct a study on the 
electric power generation needs in rural areas of the United States.
    (b) Components.--The study shall include an examination of--
            (1) generation in various areas in rural areas of the 
        United States, particularly by rural electric cooperatives;;
            (2) financing available for capacity, including financing 
        available through programs authorized under the Rural 
        Electrification Act of 1936 (7 U.S.C. 901 et seq.);
            (3) the impact of electricity costs on consumers and local 
        economic development;
            (4) the ability of fuel feedstock technology to meet 
        regulatory requirements, such as carbon capture and 
        sequestration; and
            (5) any other factors that the Secretary considers 
        appropriate.
    (c) Report.--Not later than 60 days after the date of enactment of 
this Act, the Secretary shall submit to the Committee on Agriculture of 
the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report containing the findings 
of the study under this section.

                       Subtitle C--Miscellaneous

SEC. 6201. DISTANCE LEARNING AND TELEMEDICINE.

    (a) In General.--Section 2333(c)(1) of the Food, Agriculture, 
Conservation and Trade Act of 1990 (7 U.S.C. Sec. 950aaa-2(a)(1)) is 
amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following:
                    ``(C) libraries.''.
    (b) Authorization of Appropriations.--Section 2335A of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-5) is 
amended by striking ``2007'' and inserting ``2012''.
    (c) Conforming Amendment.--Section 1(b) of Public Law 102-551 (7 
U.S.C. 950aaa note; Public Law 102-551) is amended by striking ``2007'' 
and inserting ``2012''.

SEC. 6202. VALUE-ADDED AGRICULTURAL MARKET DEVELOPMENT PROGRAM GRANTS.

    (a) Definitions.--Section 231 of the Agricultural Risk Protection 
Act of 2000 (7 U.S.C. 1621 note; Public Law 106-224) is amended by 
striking subsection (a) and inserting the following:
    ``(a) Definitions.--In this section:
            ``(1) Beginning farmer or rancher.--The term `beginning 
        farmer or rancher' has the meaning given the term in section 
        343(a) of the Consolidated Farm and Rural Development Act (7 
        U.S.C. 1991(a)).
            ``(2) Family farm.--The term `family farm' has the meaning 
        given the term in section 761.2 of title 7, Code of Federal 
        Regulations (as in effect on December 30, 2007).
            ``(3) Mid-tier value chain.--The term `mid-tier value 
        chain' means local and regional supply networks that link 
        independent producers with businesses and cooperatives that 
        market value-added agricultural products in a manner that--
                    ``(A) targets and strengthens the profitability and 
                competitiveness of small and medium-sized farms and 
                ranches that are structured as a family farm; and
                    ``(B) obtains agreement from an eligible 
                agricultural producer group, farmer or rancher 
                cooperative, or majority-controlled producer-based 
                business venture that is engaged in the value chain on 
                a marketing strategy.
            ``(4) Socially disadvantaged farmer or rancher.--The term 
        `socially disadvantaged farmer or rancher' has the meaning 
        given the term in section 355(e) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 2003(e)).
            ``(5) Value-added agricultural product.--The term `value-
        added agricultural product' means any agricultural commodity or 
        product that--
                    ``(A)(i) has undergone a change in physical state;
                    ``(ii) was produced in a manner that enhances the 
                value of the agricultural commodity or product, as 
                demonstrated through a business plan that shows the 
                enhanced value, as determined by the Secretary;
                    ``(iii) is physically segregated in a manner that 
                results in the enhancement of the value of the 
                agricultural commodity or product;
                    ``(iv) is a source of farm- or ranch-based 
                renewable energy, including E-85 fuel; or
                    ``(v) is aggregated and marketed as a locally-
                produced agricultural food product; and
            ``(B) as a result of the change in physical state or the 
        manner in which the agricultural commodity or product was 
        produced, marketed, or segregated--
                    ``(i) the customer base for the agricultural 
                commodity or product is expanded; and
                    ``(ii) a greater portion of the revenue derived 
                from the marketing, processing, or physical segregation 
                of the agricultural commodity or product is available 
                to the producer of the commodity or product.''.
    (b) Grant Program.--Section 231(b) of the Agricultural Risk 
Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-224) is 
amended--
            (1) in paragraph (1), by striking ``paragraph (4)'' and 
        inserting ``paragraph (7)''; and
            (2) by striking paragraph (4) and inserting the following:
            ``(4) Term.--A grant under this subsection shall have a 
        term that does not exceed 3 years.
            ``(5) Simplified application.--The Secretary shall offer a 
        simplified application form and process for project proposals 
        requesting less than $50,000.
            ``(6) Priority.--In awarding grants under this subsection, 
        the Secretary shall give priority to projects that contribute 
        to increasing opportunities for--
                    ``(A) beginning farmers or ranchers;
                    ``(B) socially disadvantaged farmers or ranchers; 
                and
                    ``(C) operators of small- and medium-sized farms 
                and ranches that are structured as a family farm.
            ``(7) Funding.--
                    ``(A) Mandatory funding.--On October 1, 2008, of 
                the funds of the Commodity Credit Corporation, the 
                Secretary shall make available to carry out this 
                subsection $15,000,000, to remain available until 
                expended.
                    ``(B) Discretionary funding.--There is authorized 
                to be appropriated to carry out this subsection 
                $40,000,000 for each of fiscal years 2008 through 2012.
                    ``(C) Reservation of funds for projects to benefit 
                beginning farmers or ranchers, socially disadvantaged 
                farmers or ranchers, and mid-tier value chains.--
                            ``(i) In general.--The Secretary shall 
                        reserve 10 percent of the amounts made 
                        available for each fiscal year under this 
                        paragraph to fund projects that benefit 
                        beginning farmers or ranchers or socially 
                        disadvantaged farmers or ranchers.
                            ``(ii) Mid-tier value chains.--The 
                        Secretary shall reserve 10 percent of the 
                        amounts made available for each fiscal year 
                        under this paragraph to fund applications of 
                        eligible entities described in paragraph (1) 
                        that propose to develop mid-tier value chains.
                            ``(iii) Unobligated amounts.--Any amounts 
                        in the reserves for a fiscal year established 
                        under clauses (i) and (ii) that are not 
                        obligated by June 30 of the fiscal year shall 
                        be available to the Secretary to make grants 
                        under this subsection to eligible entities in 
                        any State, as determined by the Secretary.''.

SEC. 6203. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM.

    Section 6402 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 1621 note; Public Law 107-171) is amended by striking 
subsection (i) and inserting the following:
    ``(i) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $6,000,000 for 
each of fiscal years 2008 through 2012.''.

SEC. 6204. RURAL FIREFIGHTERS AND EMERGENCY MEDICAL SERVICE ASSISTANCE 
              PROGRAM.

    Section 6405 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 2655) is amended to read as follows:

``SEC. 6405. RURAL FIREFIGHTERS AND EMERGENCY MEDICAL SERVICE 
              ASSISTANCE PROGRAM.

    ``(a) Definition of Emergency Medical Services.--In this section:
            ``(1) In general.--The term `emergency medical services' 
        means resources used by a public or nonprofit entity to deliver 
        medical care outside of a medical facility under emergency 
        conditions that occur as a result of--
                    ``(A) the condition of a patient; or
                    ``(B) a natural disaster or related condition.
            ``(2) Inclusion.--The term `emergency medical services' 
        includes services (whether compensated or volunteer) delivered 
        by an emergency medical services provider or other provider 
        recognized by the State involved that is licensed or certified 
        by the State as--
                    ``(A) an emergency medical technician or the 
                equivalent (as determined by the State);
                    ``(B) a registered nurse;
                    ``(C) a physician assistant; or
                    ``(D) a physician that provides services similar to 
                services provided by such an emergency medical services 
                provider.
    ``(b) Grants.--The Secretary shall award grants to eligible 
entities--
            ``(1) to enable the entities to provide for improved 
        emergency medical services in rural areas; and
            ``(2) to pay the cost of training firefighters and 
        emergency medical personnel in firefighting, emergency medical 
        practices, and responding to hazardous materials and bioagents 
        in rural areas.
    ``(c) Eligibility.--To be eligible to receive a grant under this 
section, an entity shall--
            ``(1) be--
                    ``(A) a State emergency medical services office;
                    ``(B) a State emergency medical services 
                association;
                    ``(C) a State office of rural health or an 
                equivalent agency;
                    ``(D) a local government entity;
                    ``(E) an Indian tribe (as defined in section 4 of 
                the Indian Self-Determination and Education Assistance 
                Act (25 U.S.C. 450b));
                    ``(F) a State or local ambulance provider; or
                    ``(G) any other public or nonprofit entity 
                determined appropriate by the Secretary; and
            ``(2) prepare and submit to the Secretary an application at 
        such time, in such manner, and containing such information as 
        the Secretary may require, that includes--
                    ``(A) a description of the activities to be carried 
                out under the grant; and
                    ``(B) an assurance that the applicant will comply 
                with the matching requirement of subsection (f).
    ``(d) Use of Funds.--An entity shall use amounts received under a 
grant made under subsection (b) only in a rural area--
            ``(1) to hire or recruit emergency medical service 
        personnel;
            ``(2) to recruit or retain volunteer emergency medical 
        service personnel;
            ``(3) to train emergency medical service personnel in 
        emergency response, injury prevention, safety awareness, or 
        other topics relevant to the delivery of emergency medical 
        services;
            ``(4) to fund training to meet State or Federal 
        certification requirements;
            ``(5) to provide training for firefighters or emergency 
        medical personnel for improvements to the training facility, 
        equipment, curricula, or personnel;
            ``(6) to develop new ways to educate emergency health care 
        providers through the use of technology-enhanced educational 
        methods (such as distance learning);
            ``(7) to acquire emergency medical services vehicles, 
        including ambulances;
            ``(8) to acquire emergency medical services equipment, 
        including cardiac defibrillators;
            ``(9) to acquire personal protective equipment for 
        emergency medical services personnel as required by the 
        Occupational Safety and Health Administration; or
            ``(10) to educate the public concerning cardiopulmonary 
        resuscitation (CPR), first aid, injury prevention, safety 
        awareness, illness prevention, or other related emergency 
        preparedness topics.
    ``(e) Preference.--In awarding grants under this section, the 
Secretary shall give preference to--
            ``(1) applications that reflect a collaborative effort by 2 
        or more of the entities described in subparagraphs (A) through 
        (G) of subsection (c)(1); and
            ``(2) applications submitted by entities that intend to use 
        amounts provided under the grant to fund activities described 
        in any of paragraphs (1) through (5) of subsection (d).
    ``(f) Matching Requirement.--The Secretary may not make a grant 
under this section to an entity unless the entity makes available 
(directly or through contributions from other public or private 
entities) non-Federal contributions toward the activities to be carried 
out under the grant in an amount equal to at least 5 percent of the 
amount received under the grant.
    ``(g) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to the Secretary to carry out this section not more than 
        $30,000,000 for each of fiscal years 2008 through 2012.
            ``(2) Administrative costs.--Not more than 5 percent of the 
        amount appropriated under paragraph (1) for a fiscal year may 
        be used for administrative expenses incurred in carrying out 
        this section.''.

SEC. 6205. INSURANCE OF LOANS FOR HOUSING AND RELATED FACILITIES FOR 
              DOMESTIC FARM LABOR.

    Section 514(f)(3) of the Housing Act of 1949 (42 U.S.C. 1484(f)(3)) 
is amended by striking ``or the handling of such commodities in the 
unprocessed stage'' and inserting ``, the handling of agricultural or 
aquacultural commodities in the unprocessed stage, or the processing of 
agricultural or aquacultural commodities''.

SEC. 6206. STUDY OF RURAL TRANSPORTATION ISSUES.

    (a) In General.--The Secretary of Agriculture and the Secretary of 
Transportation shall jointly conduct a study of transportation issues 
regarding the movement of agricultural products, domestically produced 
renewable fuels, and domestically produced resources for the production 
of electricity for rural areas of the United States, and economic 
development in those areas.
    (b) Inclusions.--The study shall include an examination of--
            (1) the importance of freight transportation, including 
        rail, truck, and barge, to--
                    (A) the delivery of equipment, seed, fertilizer, 
                and other such products important to the development of 
                agricultural commodities and products;
                    (B) the movement of agricultural commodities and 
                products to market;
                    (C) the delivery of ethanol and other renewable 
                fuels;
                    (D) the delivery of domestically produced resources 
                for use in the generation of electricity for rural 
                areas;
                    (E) the location of grain elevators, ethanol 
                plants, and other facilities;
                    (F) the development of manufacturing facilities in 
                rural areas; and
                    (G) the vitality and economic development of rural 
                communities;
            (2) the sufficiency in rural areas of transportation 
        capacity, the sufficiency of competition in the transportation 
        system, the reliability of transportation services, and the 
        reasonableness of transportation rates;
            (3) the sufficiency of facility investment in rural areas 
        necessary for efficient and cost-effective transportation; and
            (4) the accessibility to shippers in rural areas of Federal 
        processes for the resolution of grievances arising within 
        various transportation modes.
    (c) Report to Congress.--Not later than 1 year after the date of 
enactment of this Act, the Secretary and the Secretary of 
Transportation shall submit to Congress a report that contains the 
results of the study required by subsection (a).

                 Subtitle D--Housing Assistance Council

SEC. 6301. SHORT TITLE.

    This subtitle may be cited as the ``Housing Assistance Council 
Authorization Act of 2008''.

SEC. 6302. ASSISTANCE TO HOUSING ASSISTANCE COUNCIL.

    (a) Use.--The Secretary of Housing and Urban Development may 
provide financial assistance to the Housing Assistance Council for use 
by the Council to develop the ability and capacity of community-based 
housing development organizations to undertake community development 
and affordable housing projects and programs in rural areas. Assistance 
provided by the Secretary under this section may be used by the Housing 
Assistance Council for--
            (1) technical assistance, training, support, research, and 
        advice to develop the business and administrative capabilities 
        of rural community-based housing development organizations;
            (2) loans, grants, or other financial assistance to rural 
        community-based housing development organizations to carry out 
        community development and affordable housing activities for 
        low- and moderate-income families; and
            (3) such other activities as may be determined by the 
        Secretary of Housing and Urban Development and the Housing 
        Assistance Council.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated for financial assistance under this section for the 
Housing Assistance Council $10,000,000 for each of fiscal years 2009 
through 2011.

SEC. 6303. AUDITS AND REPORTS.

    (a) Audit.--
            (1) In general.--The financial transactions and activities 
        of the Housing Assistance Council shall be audited annually by 
        an independent certified public accountant or an independent 
        licensed public accountant certified or licensed by a 
        regulatory authority of a State or other political subdivision 
        of the United States.
            (2) Requirements of audits.--The Comptroller General of the 
        United States may rely on any audit completed under paragraph 
        (1), if the audit complies with--
                    (A) the annual programmatic and financial 
                examination requirements established in OMB Circular A-
                133; and
                    (B) generally accepted government auditing 
                standards.
            (3) Report to congress.--The Comptroller General shall 
        submit to the Committee on Banking, Housing, and Urban Affairs 
        of the Senate and the Committee on Financial Services of the 
        House of Representative a report detailing each audit completed 
        under paragraph (1).
    (b) GAO Report.--The Comptroller General of the United States shall 
conduct a study and submit a report to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on Financial 
Services of the House of Representative on the use of any funds 
appropriated to the Housing Assistance Council over the past 7 years.

SEC. 6304. PERSONS NOT LAWFULLY PRESENT IN THE UNITED STATES.

    Aliens who are not lawfully present in the United States shall be 
ineligible for financial assistance under this subtitle, as provided 
and defined by section 214 of the Housing and Community Development Act 
of 1980 (42 U.S.C. 1436a). Nothing in this subtitle shall be construed 
to alter the restrictions or definitions in such section 214.

SEC. 6305. LIMITATION ON USE OF AUTHORIZED AMOUNTS.

    None of the amounts authorized by this subtitle may be used to 
lobby or retain a lobbyist for the purpose of influencing a Federal, 
State, or local governmental entity or officer.

                TITLE VII--RESEARCH AND RELATED MATTERS

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

SEC. 7101. DEFINITIONS.

    (a) In General.--Section 1404 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103) is 
amended--
            (1) in paragraph (4)--
                    (A) by redesignating subparagraphs (A) through (E) 
                as clauses (i) through (v), respectively;
                    (B) by striking ``(4) The terms'' and inserting the 
                following:
            ``(4) College and university.--
                    ``(A) In general.--The terms''; and
                    (C) by adding at the end the following:
                    ``(B) Inclusions.--The terms `college' and 
                `university' include a research foundation maintained 
                by a college or university described in subparagraph 
                (A).'';
            (2) by redesignating paragraphs (5) through (8), (9) 
        through (11), (12) through (14), (15), (16), (17), and (18) as 
        paragraphs (6) through (9), (11) through (13), (15) through 
        (17), (20), (5), (18), and (19), respectively, and moving the 
        paragraphs so as to appear in alphabetical and numerical order;
            (3) in paragraph (9) (as redesignated by paragraph (2))--
                    (A) by striking ``renewable natural resources'' and 
                inserting ``renewable energy and natural resources''; 
                and
                    (B) by striking subparagraph (F) and inserting the 
                following:
                    ``(F) Soil, water, and related resource 
                conservation and improvement.'';
            (4) by inserting after paragraph (9) (as so redesignated) 
        the following:
            ``(10) Hispanic-serving agricultural colleges and 
        universities.--
                    ``(A) In general.--The term `Hispanic-serving 
                agricultural colleges and universities' means colleges 
                or universities that--
                            ``(i) qualify as Hispanic-serving 
                        institutions; and
                            ``(ii) offer associate, bachelors, or other 
                        accredited degree programs in agriculture-
                        related fields.
                    ``(B) Exception.--The term `Hispanic-serving 
                agricultural colleges and universities' does not 
                include 1862 institutions (as defined in section 2 of 
                the Agricultural Research, Extension, and Education 
                Reform Act of 1998 (7 U.S.C. 7601)).'';
            (5) by striking paragraph (11) (as so redesignated) and 
        inserting the following:
            ``(11) Hispanic-serving institution.--The term `Hispanic-
        serving institution' has the meaning given the term in section 
        502 of the Higher Education Act of 1965 (20 U.S.C. 1101a).''; 
        and
            (6) by inserting after paragraph (13) (as so redesignated) 
        the following:
            ``(14) NLGCA institution; non-land-grant college of 
        agriculture.--
                    ``(A) In general.--The terms `NLGCA Institution' 
                and `non-land-grant college of agriculture' mean a 
                public college or university offering a baccalaureate 
                or higher degree in the study of agriculture or 
                forestry.
                    ``(B) Exclusions.--The terms `NLGCA Institution' 
                and `non-land-grant college of agriculture' do not 
                include--
                            ``(i) Hispanic-serving agricultural 
                        colleges and universities; or
                            ``(ii) any institution designated under--
                                    ``(I) the Act of July 2, 1862 
                                (commonly known as the `First Morrill 
                                Act'; 7 U.S.C. 301 et seq.);
                                    ``(II) the Act of August 30, 1890 
                                (commonly known as the `Second Morrill 
                                Act') (7 U.S.C. 321 et seq.);
                                    ``(III) the Equity in Educational 
                                Land-Grant Status Act of 1994 (Public 
                                Law 103-382; 7 U.S.C. 301 note); or
                                    ``(IV) Public Law 87-788 (commonly 
                                known as the `McIntire-Stennis 
                                Cooperative Forestry Act') (16 U.S.C. 
                                582a et seq.).''.
    (b) Conforming Amendments.--
            (1) Section 2(3) of the Research Facilities Act (7 U.S.C. 
        390(3)) is amended by striking ``section 1404(8) of the 
        National Agricultural Research, Extension, and Teaching Policy 
        Act of 1977 (7 U.S.C. 3103(8))'' and inserting ``section 1404 
        of the National Agricultural Research, Extension, and Teaching 
        Policy Act of 1977 (7 U.S.C. 3103)''.
            (2) Section 2(k) of the Competitive, Special, and 
        Facilities Research Grant Act (7 U.S.C. 450i(k)) is amended in 
        the second sentence by striking ``section 1404(17) of the 
        National Agricultural Research, Extension, and Teaching Policy 
        Act of 1977 (7 U.S.C. 3103(17))'' and inserting ``section 1404 
        of the National Agricultural Research, Extension, and Teaching 
        Policy Act of 1977 (7 U.S.C. 3103)''.
            (3) Section 18(a)(3)(B) of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2027(a)(3)(B)) is amended by striking ``section 
        1404(5) of the National Agricultural Research, Extension, and 
        Teaching Policy Act of 1977 (7 U.S.C. 3103(5)))'' and inserting 
        ``section 1404 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103))''.
            (4) Section 1473 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319) is 
        amended in the first sentence by striking ``section 1404(16) of 
        this title'' and inserting ``section 1404(18)''.
            (5) Section 1619(b) of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 5801(b)) is amended--
                    (A) in paragraph (1), by striking ``section 
                1404(17) of the National Agricultural Research, 
                Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
                3103(17))'' and inserting ``section 1404 of the 
                National Agricultural Research, Extension, and Teaching 
                Policy Act of 1977 (7 U.S.C. 3103)'';
                    (B) in paragraph (5), by striking ``section 1404(7) 
                of the National Agricultural Research, Extension, and 
                Teaching Policy Act of 1977 (7 U.S.C. 3103(7))'' and 
                inserting ``section 1404 of the National Agricultural 
                Research, Extension, and Teaching Policy Act of 1977 (7 
                U.S.C. 3103)''; and
                    (C) in paragraph (8), by striking ``section 
                1404(13) of the National Agricultural Research, 
                Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
                3103(13))'' and inserting ``section 1404 of the 
                National Agricultural Research, Extension, and Teaching 
                Policy Act of 1977 (7 U.S.C. 3103)''.
            (6) Section 125(c)(1)(C) of Public Law 100-238 (5 U.S.C. 
        8432 note) is amended by striking ``section 1404(5) of the 
        National Agricultural Research, Extension, and Teaching Policy 
        Act of 1977 (7 U.S.C. 3103(5))'' and inserting ``section 1404 
        of the National Agricultural Research, Extension, and Teaching 
        Policy Act of 1977 (7 U.S.C. 3103)''.

SEC. 7102. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND 
              ECONOMICS ADVISORY BOARD.

    (a) In General.--Section 1408 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``31'' and 
                inserting ``25''; and
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) Membership categories.--The Advisory Board shall 
        consist of members from each of the following categories:
                    ``(A) 1 member representing a national farm 
                organization.
                    ``(B) 1 member representing farm cooperatives.
                    ``(C) 1 member actively engaged in the production 
                of a food animal commodity, recommended by a coalition 
                of national livestock organizations.
                    ``(D) 1 member actively engaged in the production 
                of a plant commodity, recommended by a coalition of 
                national crop organizations.
                    ``(E) 1 member actively engaged in aquaculture, 
                recommended by a coalition of national aquacultural 
                organizations.
                    ``(F) 1 member representing a national food animal 
                science society.
                    ``(G) 1 member representing a national crop, soil, 
                agronomy, horticulture, plant pathology, or weed 
                science society.
                    ``(H) 1 member representing a national food science 
                organization.
                    ``(I) 1 member representing a national human health 
                association.
                    ``(J) 1 member representing a national nutritional 
                science society.
                    ``(K) 1 member representing the land-grant colleges 
                and universities eligible to receive funds under the 
                Act of July 2, 1862 (7 U.S.C. 301 et seq.).
                    ``(L) 1 member representing the land-grant colleges 
                and universities eligible to receive funds under the 
                Act of August 30, 1890 (7 U.S.C. 321 et seq.), 
                including Tuskegee University.
                    ``(M) 1 member representing the 1994 Institutions 
                (as defined in section 532 of the Equity in Educational 
                Land-Grant Status Act of 1994 (7 U.S.C. 301 note; 
                Public Law 103-382)).
                    ``(N) 1 member representing NLGCA Institutions.
                    ``(O) 1 member representing Hispanic-serving 
                institutions.
                    ``(P) 1 member representing the American Colleges 
                of Veterinary Medicine.
                    ``(Q) 1 member engaged in the transportation of 
                food and agricultural products to domestic and foreign 
                markets.
                    ``(R) 1 member representing food retailing and 
                marketing interests.
                    ``(S) 1 member representing food and fiber 
                processors.
                    ``(T) 1 member actively engaged in rural economic 
                development.
                    ``(U) 1 member representing a national consumer 
                interest group.
                    ``(V) 1 member representing a national forestry 
                group.
                    ``(W) 1 member representing a national conservation 
                or natural resource group.
                    ``(X) 1 member representing private sector 
                organizations involved in international development.
                    ``(Y) 1 member representing a national social 
                science association.'';
            (2) in subsection (g)(1), by striking ``$350,000'' and 
        inserting ``$500,000''; and
            (3) in subsection (h), by striking ``2007'' and inserting 
        ``2012''.
    (b) No Effect on Terms.--Nothing in this section or any amendment 
made by this section affects the term of any member of the National 
Agricultural Research, Extension, Education, and Economics Advisory 
Board serving as of the date of enactment of this Act.

SEC. 7103. SPECIALTY CROP COMMITTEE REPORT.

    Section 1408A(c) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3123a(c)) is amended by 
adding at the end the following:
            ``(4) Analyses of changes in macroeconomic conditions, 
        technologies, and policies on specialty crop production and 
        consumption, with particular focus on the effect of those 
        changes on the financial stability of producers.
            ``(5) Development of data that provide applied information 
        useful to specialty crop growers, their associations, and other 
        interested beneficiaries in evaluating that industry from a 
        regional and national perspective.''.

SEC. 7104. RENEWABLE ENERGY COMMITTEE.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 is amended by inserting after section 1408A (7 U.S.C. 
3123a) the following:

``SEC. 1408B. RENEWABLE ENERGY COMMITTEE.

    ``(a) Initial Members.--Not later than 90 days after the date of 
enactment of this section, the executive committee of the Advisory 
Board shall establish and appoint the initial members of a permanent 
renewable energy committee.
    ``(b) Duties.--The permanent renewable energy committee shall study 
the scope and effectiveness of research, extension, and economics 
programs affecting the renewable energy industry.
    ``(c) Nonadvisory Board Members.--
            ``(1) In general.--An individual who is not a member of the 
        Advisory Board may be appointed as a member of the renewable 
        energy committee.
            ``(2) Service.--A member of the renewable energy committee 
        shall serve at the discretion of the executive committee.
    ``(d) Report by Renewable Energy Committee.--Not later than 180 
days after the date of establishment of the renewable energy committee, 
and annually thereafter, the renewable energy committee shall submit to 
the Advisory Board a report that contains the findings and any 
recommendations of the renewable energy committee with respect to the 
study conducted under subsection (b).
    ``(e) Consultation.--In carrying out the duties described in 
subsection (b), the renewable energy committee shall consult with the 
Biomass Research and Development Technical Advisory Committee 
established under section 9008(d) of the Biomass Research and 
Development Act of 2000 (7 U.S.C. 8605).
    ``(f) Matters To Be Considered in Budget Recommendation.--In 
preparing the annual budget recommendations for the Department, the 
Secretary shall take into consideration those findings and 
recommendations contained in the most recent report of the renewable 
energy committee under subsection (d) that are developed by the 
Advisory Committee.
    ``(g) Report by the Secretary.--In the budget material submitted to 
Congress by the Secretary in connection with the budget submitted 
pursuant to section 1105 of title 31, United States Code, for a fiscal 
year, the Secretary shall include a report that describes the ways in 
which the Secretary addressed each recommendation of the renewable 
energy committee described in subsection (f).''.

SEC. 7105. VETERINARY MEDICINE LOAN REPAYMENT.

    (a) In General.--Section 1415A of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3151a) 
is amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b) Determination of Veterinarian Shortage Situations.--In 
determining `veterinarian shortage situations', the Secretary may 
consider--
            ``(1) geographical areas that the Secretary determines have 
        a shortage of veterinarians; and
            ``(2) areas of veterinary practice that the Secretary 
        determines have a shortage of veterinarians, such as food 
        animal medicine, public health, epidemiology, and food 
        safety.'';
            (2) in subsection (c), by adding at the end the following:
            ``(8) Priority.--In administering the program, the 
        Secretary shall give priority to agreements with veterinarians 
        for the practice of food animal medicine in veterinarian 
        shortage situations.'';
            (3) by redesignating subsection (d) as subsection (f); and
            (4) by inserting after subsection (c) the following:
    ``(d) Use of Funds.--None of the funds appropriated to the 
Secretary under subsection (f) may be used to carry out section 5379 of 
title 5, United States Code.
    ``(e) Regulations.--Notwithstanding subchapter II of chapter 5 of 
title 5, United States Code, not later than 270 days after the date of 
enactment of this subsection, the Secretary shall promulgate 
regulations to carry out this section.''.
    (b) Disapproval of Transfer of Funds.--Congress disapproves the 
transfer of funds from the Cooperative State Research, Education, and 
Extension Service to the Food Safety and Inspection Service described 
in the notice of use of funds for implementation of the veterinary 
medicine loan repayment program authorized by the National Veterinary 
Medical Service Act (72 Fed. Reg. 48609 (August 24, 2007)), and such 
funds shall be rescinded on the date of enactment of this Act and made 
available to the Secretary, without further appropriation or fiscal 
year limitation, for use only in accordance with section 1415A of the 
National Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3151a) (as amended by subsection (a)).

SEC. 7106. ELIGIBILITY OF UNIVERSITY OF THE DISTRICT OF COLUMBIA FOR 
              GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES 
              EDUCATION.

    Section 1417 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3152) is amended--
            (1) in the matter preceding paragraph (1) of subsection 
        (b), by inserting ``(including the University of the District 
        of Columbia)'' after ``land-grant colleges and universities''; 
        and
            (2) in subsection (d)(2), by inserting ``(including the 
        University of the District of Columbia)'' after 
        ``universities''.

SEC. 7107. GRANTS TO 1890 SCHOOLS TO EXPAND EXTENSION CAPACITY.

    Section 1417(b)(4) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(b)(4)) is 
amended by striking ``teaching and research'' and inserting ``teaching, 
research, and extension''.

SEC. 7108. EXPANSION OF FOOD AND AGRICULTURAL SCIENCES AWARDS.

    Section 1417(i) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3152(i)) is amended--
            (1) in the subsection heading, by striking ``Teaching 
        Awards'' and inserting ``Teaching, Extension, and Research 
        Awards''; and
            (2) by striking paragraph (1) and inserting the following:
            ``(1) Establishment.--
                    ``(A) In general.--The Secretary shall establish a 
                National Food and Agricultural Sciences Teaching, 
                Extension, and Research Awards program to recognize and 
                promote excellence in teaching, extension, and research 
                in the food and agricultural sciences at a college or 
                university.
                    ``(B) Minimum requirement.--The Secretary shall 
                make at least 1 cash award in each fiscal year to a 
                nominee selected by the Secretary for excellence in 
                each of the areas of teaching, extension, and research 
                of food and agricultural science at a college or 
                university.''.

SEC. 7109. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES 
              EDUCATION.

    (a) Education Teaching Programs.--Section 1417(j) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3152(j)) is amended--
            (1) in the subsection heading, by striking ``Secondary 
        Education and 2-Year Postsecondary Education Teaching 
        Programs'' and inserting ``Secondary Education, 2-Year 
        Postsecondary Education, and Agriculture in the K-12 
        Classroom''; and
            (2) in paragraph (3)--
                    (A) by striking ``secondary schools, and 
                institutions of higher education that award an 
                associate's degree'' and inserting ``secondary schools, 
                institutions of higher education that award an 
                associate's degree, other institutions of higher 
                education, and nonprofit organizations'';
                    (B) in subparagraph (E), by striking ``and'' at the 
                end;
                    (C) in subparagraph (F), by striking the period at 
                the end and inserting ``; and''; and
                    (D) by adding at the end the following:
                    ``(G) to support current agriculture in the 
                classroom programs for grades K-12.''.
    (b) Report.--Section 1417 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152) is amended--
            (1) by redesignating subsection (l) as subsection (m); and
            (2) by inserting after subsection (k) the following:
    ``(l) Report.--The Secretary shall submit to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a biennial report 
detailing the distribution of funds used to implement the teaching 
programs under subsection (j).''.
    (c) Authorization of Appropriations.--Section 1417(m) of the 
National Agricultural Research, Extension, and Teaching Policy Act of 
1977 (as redesignated by subsection (b)(1)) is amended by striking 
``2007'' and inserting ``2012''.
    (d) Effective Date.--The amendments made by subsection (a) take 
effect on October 1, 2008.

SEC. 7110. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF ALCOHOLS 
              AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL COMMODITIES 
              AND FOREST PRODUCTS.

    (a) In General.--Section 1419 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154) is 
repealed.
    (b) Conforming Amendment.--Section 1463(a) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3311(a)) is amended by striking ``1419,''.

SEC. 7111. POLICY RESEARCH CENTERS.

    Section 1419A of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3155) is amended--
            (1) in subsection (a)(1), by inserting ``(including 
        commodities, livestock, dairy, and specialty crops)'' after 
        ``agricultural sectors'';
            (2) in subsection (b), by inserting ``(including the Food 
        Agricultural Policy Research Institute, the Agricultural and 
        Food Policy Center, the Rural Policy Research Institute, and 
        the National Drought Mitigation Center)'' after ``research 
        institutions and organizations''; and
            (3) in subsection (d), by striking ``2007'' and inserting 
        ``2012''.

SEC. 7112. EDUCATION GRANTS TO ALASKA NATIVE-SERVING INSTITUTIONS AND 
              NATIVE HAWAIIAN-SERVING INSTITUTIONS.

    Section 759 of the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 2000 (7 U.S.C. 
3242)--
            (1) is amended--
                    (A) in subsection (a)(3), by striking ``2006'' and 
                inserting ``2012''; and
                    (B) in subsection (b)--
                            (i) in paragraph (2)(A), by inserting 
                        before the semicolon at the end the following: 
                        ``, including permitting consortia to designate 
                        fiscal agents for the members of the consortia 
                        and to allocate among the members funds made 
                        available under this section''; and
                            (ii) in paragraph (3), by striking ``2006'' 
                        and inserting ``2012'';
            (2) is redesignated as section 1419B of the National 
        Agricultural Research, Extension, and Teaching Policy Act of 
        1977; and
            (3) is moved so as to appear after section 1419A of that 
        Act (7 U.S.C. 3155).

SEC. 7113. EMPHASIS OF HUMAN NUTRITION INITIATIVE.

    Section 1424(b) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3174(b)) is amended--
            (1) in paragraph (1), by striking ``and,'';
            (2) in paragraph (2), by striking the comma at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(3) proposals that examine the efficacy of current 
        agriculture policies in promoting the health and welfare of 
        economically disadvantaged populations;''.

SEC. 7114. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH 
              PROGRAM.

    Section 1424(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7115. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND AGRICULTURAL 
              RESEARCH.

    Section 1424A(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3174a(d)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7116. NUTRITION EDUCATION PROGRAM.

    (a) In General.--Section 1425 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175) is 
amended--
            (1) by redesignating subsections (a) through (c) as 
        subsections (b) through (d), respectively;
            (2) by striking the section heading and designation and 
        inserting the following:

``SEC. 1425. NUTRITION EDUCATION PROGRAM.

    ``(a) Definition of 1862 Institution and 1890 Institution.--In this 
section, the terms `1862 Institution' and `1890 Institution' have the 
meaning given those terms in section 2 of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7601).'';
            (3) in subsection (b) (as redesignated by paragraph (1)), 
        by striking ``(b) The Secretary'' and inserting the following:
    ``(b) Establishment.--The Secretary'';
            (4) in subsection (c) (as so redesignated), by striking 
        ``(c) In order to enable'' and inserting the following:
    ``(c) Employment and Training.--To enable'';
            (5) in subsection (d) (as redesignated by paragraph (1))--
                    (A) by striking ``(d) Beginning'' and inserting the 
                following:
    ``(d) Allocation of Funding.--Beginning'';
                    (B) in paragraph (2), by striking subparagraph (B) 
                and inserting the following:
                    ``(B) Notwithstanding section 3(d) of the Act of 
                May 8, 1914 (7 U.S.C. 343(d)), the remainder shall be 
                allocated among the States as follows:
                            ``(i) $100,000 shall be distributed to each 
                        1862 Institution and 1890 Institution.
                            ``(ii) Subject to clause (iii), the 
                        remainder shall be allocated to each State in 
                        an amount that bears the same ratio to the 
                        total amount to be allocated under this clause 
                        as--
                                    ``(I) the population living at or 
                                below 125 percent of the income poverty 
                                guidelines (as prescribed by the Office 
                                of Management and Budget and as 
                                adjusted pursuant to section 673(2) of 
                                the Community Services Block Grant Act 
                                (42 U.S.C. 9902(2))) in the State; 
                                bears to
                                    ``(II) the total population living 
                                at or below 125 percent of those income 
                                poverty guidelines in all States;
                        as determined by the most recent decennial 
                        census at the time at which each such 
                        additional amount is first appropriated.
                            ``(iii)(I) Before any allocation of funds 
                        under clause (ii), for any fiscal year for 
                        which the amount of funds appropriated for the 
                        conduct of the expanded food and nutrition 
                        education program exceeds the amount of funds 
                        appropriated for the program for fiscal year 
                        2007, the following percentage of such excess 
                        funds for the fiscal year shall be allocated to 
                        the 1890 Institutions in accordance with 
                        subclause (II):
                                    ``(aa) 10 percent for fiscal year 
                                2009.
                                    ``(bb) 11 percent for fiscal year 
                                2010.
                                    ``(cc) 12 percent for fiscal year 
                                2011.
                                    ``(dd) 13 percent for fiscal year 
                                2012.
                                    ``(ee) 14 percent for fiscal year 
                                2013.
                                    ``(ff) 15 percent for fiscal year 
                                2014 and for each fiscal year 
                                thereafter.
                            ``(II) Funds made available under subclause 
                        (I) shall be allocated to each 1890 Institution 
                        in an amount that bears the same ratio to the 
                        total amount to be allocated under this clause 
                        as--
                                    ``(aa) the population living at or 
                                below 125 percent of the income poverty 
                                guidelines (as prescribed by the Office 
                                of Management and Budget and as 
                                adjusted pursuant to section 673(2) of 
                                the Community Services Block Grant Act 
                                (42 U.S.C. 9902(2))) in the State in 
                                which the 1890 Institution is located; 
                                bears to
                                    ``(bb) the total population living 
                                at or below 125 percent of those income 
                                poverty guidelines in all States in 
                                which 1890 Institutions are located;
                        as determined by the most recent decennial 
                        census at the time at which each such 
                        additional amount is first appropriated.
                            ``(iv) Nothing in this subparagraph 
                        precludes the Secretary from developing 
                        educational materials and programs for persons 
                        in income ranges above the level designated in 
                        this subparagraph.''; and
                    (C) by striking paragraph (3); and
            (6) by adding at the end the following:
    ``(e) Complementary Administration.--The Secretary shall ensure the 
complementary administration of the expanded food and nutrition 
education program by 1862 Institutions and 1890 Institutions in a 
State.
    ``(f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out the expanded food and nutrition education 
program established under section 3(d) of the Act of May 8, 1914 (7 
U.S.C. 343(d)), and this section $90,000,000 for each of fiscal years 
2009 through 2012.''.
    (b) Conforming Amendment.--Section 1588(b) of the Food Security Act 
of 1985 (7 U.S.C. 3175e(b)) is amended by striking ``section 
1425(c)(2)'' and inserting ``section 1425(d)(2)''.
    (c) Effective Date.--The amendments made by this section take 
effect on October 1, 2008.

SEC. 7117. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS.

    Section 1433(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) is amended in the 
first sentence by striking ``2007'' and inserting ``2012''.

SEC. 7118. COOPERATION AMONG ELIGIBLE INSTITUTIONS.

    Section 1433 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3195) is amended by adding at the 
end the following:
    ``(g) Cooperation Among Eligible Institutions.--The Secretary, to 
the maximum extent practicable, shall encourage eligible institutions 
to cooperate in setting research priorities under this section through 
the conduct of regular regional and national meetings.''.

SEC. 7119. APPROPRIATIONS FOR RESEARCH ON NATIONAL OR REGIONAL 
              PROBLEMS.

    Section 1434(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7120. ANIMAL HEALTH AND DISEASE RESEARCH PROGRAM.

    Section 1434(b) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3196(b)) is amended by 
inserting after ``universities'' the following: ``(including 1890 
Institutions (as defined in section 2 of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7601)))''.

SEC. 7121. AUTHORIZATION LEVEL FOR EXTENSION AT 1890 LAND-GRANT 
              COLLEGES.

    Section 1444(a)(2) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3221(a)(2)) is 
amended by striking ``15 percent'' and inserting ``20 percent''.

SEC. 7122. AUTHORIZATION LEVEL FOR AGRICULTURAL RESEARCH AT 1890 LAND-
              GRANT COLLEGES.

    Section 1445(a)(2) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222(a)(2)) is 
amended by striking ``25 percent'' and inserting ``30 percent''.

SEC. 7123. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES 
              AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE 
              UNIVERSITY.

    Section 1447(b) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7124. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES FACILITIES 
              AT THE DISTRICT OF COLUMBIA LAND-GRANT UNIVERSITY.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 is amended by inserting after section 1447 (7 U.S.C. 3222b) 
the following:

``SEC. 1447A. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES 
              FACILITIES AT THE DISTRICT OF COLUMBIA LAND-GRANT 
              UNIVERSITY.

    ``(a) Purpose.--It is the intent of Congress to assist the land-
grant university in the District of Columbia established under section 
208 of the District of Columbia Public Postsecondary Education 
Reorganization Act (Public Law 93-471; 88 Stat. 1428) in efforts to 
acquire, alter, or repair facilities or relevant equipment necessary 
for conducting agricultural research.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $750,000 for each of fiscal 
years 2008 through 2012.''.

SEC. 7125. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES FACILITIES 
              AND EQUIPMENT AT INSULAR AREA LAND-GRANT INSTITUTIONS.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3101 et seq.) is amended by inserting after 
section 1447A (as added by section 7124) the following:

``SEC. 1447B. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES 
              FACILITIES AND EQUIPMENT AT INSULAR AREA LAND-GRANT 
              INSTITUTIONS.

    ``(a) Purpose.--It is the intent of Congress to assist the land-
grant institutions in the insular areas in efforts to acquire, alter, 
or repair facilities or relevant equipment necessary for conducting 
agricultural research.
    ``(b) Method of Awarding Grants.--Grants awarded pursuant to this 
section shall be made in such amounts and under such terms and 
conditions as the Secretary determines necessary to carry out the 
purposes of this section.
    ``(c) Regulations.--The Secretary may promulgate such rules and 
regulations as the Secretary considers to be necessary to carry out 
this section.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $8,000,000 for each of fiscal 
years 2008 through 2012.''.

SEC. 7126. NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS.

    Section 1448 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3222c) is amended by striking 
``2007'' each place it appears in subsections (a)(1) and (f) and 
inserting ``2012''.

SEC. 7127. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND EXTENSION 
              ACTIVITIES OF 1890 INSTITUTIONS.

    Section 1449(c) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3222d(c)) is amended--
            (1) in the first sentence--
                    (A) by striking ``for each of fiscal years 2003 
                through 2007,''; and
                    (B) by inserting ``equal'' before ``matching''; and
            (2) by striking the second sentence and all that follows 
        through paragraph (5).

SEC. 7128. HISPANIC-SERVING INSTITUTIONS.

    Section 1455 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3241) is amended--
            (1) in subsection (a) by striking ``(or grants without 
        regard to any requirement for competition)'';
            (2) in subsection (b)(1), by striking ``of consortia''; and
            (3) in subsection (c)--
                    (A) by striking ``$20,000,000'' and inserting 
                ``$40,000,000''; and
                    (B) by striking ``2007'' and inserting ``2012''.

SEC. 7129. HISPANIC-SERVING AGRICULTURAL COLLEGES AND UNIVERSITIES.

    (a) In General.--The National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 is amended by inserting after section 1455 
(7 U.S.C. 3241) the following:

``SEC. 1456. HISPANIC-SERVING AGRICULTURAL COLLEGES AND UNIVERSITIES.

    ``(a) Definition of Endowment Fund.--In this section, the term 
`endowment fund' means the Hispanic-Serving Agricultural Colleges and 
Universities Fund established under subsection (b).
    ``(b) Endowment.--
            ``(1) In general.--The Secretary of the Treasury shall 
        establish in accordance with this subsection a Hispanic-Serving 
        Agricultural Colleges and Universities Fund.
            ``(2) Agreements.--The Secretary of the Treasury may enter 
        into such agreements as are necessary to carry out this 
        subsection.
            ``(3) Deposit to the endowment fund.--The Secretary of the 
        Treasury shall deposit in the endowment fund any--
                    ``(A) amounts made available through Acts of 
                appropriations, which shall be the endowment fund 
                corpus; and
                    ``(B) interest earned on the endowment fund corpus.
            ``(4) Investments.--The Secretary of the Treasury shall 
        invest the endowment fund corpus and income in interest-bearing 
        obligations of the United States.
            ``(5) Withdrawals and expenditures.--
                    ``(A) Corpus.--The Secretary of the Treasury may 
                not make a withdrawal or expenditure from the endowment 
                fund corpus.
                    ``(B) Withdrawals.--On September 30, 2008, and each 
                September 30 thereafter, the Secretary of the Treasury 
                shall withdraw the amount of the income from the 
                endowment fund for the fiscal year and warrant the 
                funds to the Secretary of Agriculture who, after making 
                adjustments for the cost of administering the endowment 
                fund, shall distribute the adjusted income as follows:
                            ``(i) 60 percent shall be distributed among 
                        the Hispanic-serving agricultural colleges and 
                        universities on a pro rata basis based on the 
                        Hispanic enrollment count of each institution.
                            ``(ii) 40 percent shall be distributed in 
                        equal shares to the Hispanic-serving 
                        agricultural colleges and universities.
            ``(6) Endowments.--Amounts made available under this 
        subsection shall be held and considered to be granted to 
        Hispanic-serving agricultural colleges and universities to 
        establish an endowment in accordance with this subsection.
            ``(7) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary such sums as are 
        necessary to carry out this subsection for fiscal year 2008 and 
        each fiscal year thereafter.
    ``(c) Authorization for Annual Payments.--
            ``(1) In general.--For fiscal year 2008 and each fiscal 
        year thereafter, there are authorized to be appropriated to the 
        Department of Agriculture to carry out this subsection an 
        amount equal to the product obtained by multiplying--
                    ``(A) $80,000; by
                    ``(B) the number of Hispanic-serving agricultural 
                colleges and universities.
            ``(2) Payments.--For fiscal year 2008 and each fiscal year 
        thereafter, the Secretary of the Treasury shall pay to the 
        treasurer of each Hispanic-serving agricultural college and 
        university an amount equal to--
                    ``(A) the total amount made available by 
                appropriations under paragraph (1); divided by
                    ``(B) the number of Hispanic-serving agricultural 
                colleges and universities.
            ``(3) Use of funds.--
                    ``(A) In general.--Amounts authorized to be 
                appropriated under this subsection shall be used in the 
                same manner as is prescribed for colleges under the Act 
                of August 30, 1890 (commonly known as the `Second 
                Morrill Act') (7 U.S.C. 321 et seq.).
                    ``(B) Relationship to other law.--Except as 
                otherwise provided in this subsection, the requirements 
                of that Act shall apply to Hispanic-serving 
                agricultural colleges and universities under this 
                section.
    ``(d) Institutional Capacity-Building Grants.--
            ``(1) In general.--For fiscal year 2008 and each fiscal 
        year thereafter, the Secretary shall make grants to assist 
        Hispanic-serving agricultural colleges and universities in 
        institutional capacity building (not including alteration, 
        repair, renovation, or construction of buildings).
            ``(2) Criteria for institutional capacity-building 
        grants.--
                    ``(A) Requirements for grants.--The Secretary shall 
                make grants under this subsection on the basis of a 
                competitive application process under which Hispanic-
                serving agricultural colleges and universities may 
                submit applications to the Secretary at such time, in 
                such manner, and containing such information as the 
                Secretary may require.
                    ``(B) Demonstration of need.--
                            ``(i) In general.--As part of an 
                        application for a grant under this subsection, 
                        the Secretary shall require the applicant to 
                        demonstrate need for the grant, as determined 
                        by the Secretary.
                            ``(ii) Other sources of funding.--The 
                        Secretary may award a grant under this 
                        subsection only to an applicant that 
                        demonstrates a failure to obtain funding for a 
                        project after making a reasonable effort to 
                        otherwise obtain the funding.
                    ``(C) Payment of non-federal share.--A grant 
                awarded under this subsection shall be made only if the 
                recipient of the grant pays a non-Federal share in an 
                amount that is specified by the Secretary and based on 
                assessed institutional needs.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary such sums as are 
        necessary to carry out this subsection for fiscal year 2008 and 
        each fiscal year thereafter.
    ``(e) Competitive Grants Program.--
            ``(1) In general.--The Secretary shall establish a 
        competitive grants program to fund fundamental and applied 
        research at Hispanic-serving agricultural colleges and 
        universities in agriculture, human nutrition, food science, 
        bioenergy, and environmental science.
            ``(2) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary such sums as are 
        necessary to carry out this subsection for fiscal year 2008 and 
        each fiscal year thereafter.''.
    (b) Extension.--Section 3 of the Smith-Lever Act (7 U.S.C. 343) is 
amended--
            (1) in subsection (b), by adding at the end the following:
            ``(4) Annual appropriation for hispanic-serving 
        agricultural colleges and universities.--
                    ``(A) Authorization of appropriations.--There are 
                authorized to be appropriated to the Secretary for 
                payments to Hispanic-serving agricultural colleges and 
                universities (as defined in section 1404 of the 
                National Agricultural Research, Extension, and Teaching 
                Policy Act of 1977 (7 U.S.C. 3103)) such sums as are 
                necessary to carry out this paragraph for fiscal year 
                2008 and each fiscal year thereafter, to remain 
                available until expended.
                    ``(B) Additional amount.--Amounts made available 
                under this paragraph shall be in addition to any other 
                amounts made available under this section to States, 
                the Commonwealth of Puerto Rico, Guam, or the United 
                States Virgin Islands.
                    ``(C) Administration.--Amounts made available under 
                this paragraph shall be--
                            ``(i) distributed on the basis of a 
                        competitive application process to be developed 
                        and implemented by the Secretary;
                            ``(ii) paid by the Secretary to the State 
                        institutions established in accordance with the 
                        Act of July 2, 1862 (commonly known as the 
                        `First Morrill Act') (7 U.S.C. 301 et seq.); 
                        and
                            ``(iii) administered by State institutions 
                        through cooperative agreements with the 
                        Hispanic-serving agricultural colleges and 
                        universities in the State in accordance with 
                        regulations promulgated by the Secretary.''; 
                        and
            (2) in subsection (f)--
                    (A) in the subsection heading, by inserting ``and 
                Hispanic-Serving Agricultural Colleges and 
                Universities'' after ``1994 Institutions''; and
                    (B) by striking ``pursuant to subsection (b)(3)'' 
                and inserting ``or Hispanic-serving agricultural 
                colleges and universities in accordance with paragraphs 
                (3) and (4) of subsection (b)''.
    (c) Conforming Amendments.--
            (1) Section 2 of the Agricultural Research, Extension, and 
        Education Reform Act of 1998 (7 U.S.C. 7601) is amended--
                    (A) by redesignating paragraph (6) as paragraph 
                (7); and
                    (B) by inserting after paragraph (5) the following:
            ``(6) Hispanic-serving agricultural colleges and 
        universities.--The term `Hispanic-serving agricultural colleges 
        and universities' has the meaning given the term in section 
        1404 of the National Agricultural Research, Extension, and 
        Teaching Policy Act of 1977 (7 U.S.C. 3103).''.
            (2) Section 102(c) of the Agricultural Research, Extension, 
        and Education Reform Act of 1998 (7 U.S.C. 7612(c)) is 
        amended--
                    (A) in the subsection heading, by inserting ``and 
                Hispanic-Serving Agricultural Colleges and 
                Universities'' after ``Institutions''; and
                    (B) in paragraph (1), by striking `` and 1994 
                Institution'' and inserting ``1994 Institution, and 
                Hispanic-serving agricultural college and university''.
            (3) Section 103(e) of the Agricultural Research, Extension, 
        and Education Reform Act of 1998 (7 U.S.C. 7613(e)) is amended 
        by adding at the end the following:
            ``(3) Hispanic-serving agricultural colleges and 
        universities.--To be eligible to obtain agricultural extension 
        funds from the Secretary for an activity, each Hispanic-serving 
        agricultural college and university shall--
                    ``(A) establish a process for merit review of the 
                activity; and
                    ``(B) review the activity in accordance with such 
                process.''.
            (4) Section 406(b) of the Agricultural Research, Extension, 
        and Education Reform Act of 1998 (7 U.S.C. 7626(b)) is amended 
        by striking ``and 1994 Institutions'' and inserting ``, 1994 
        Institutions, and Hispanic-serving agricultural colleges and 
        universities''.

SEC. 7130. INTERNATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND 
              EDUCATION.

    Section 1458(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3291(a)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (B), by adding ``and'' at the 
                end; and
                    (C) by adding at the end the following:
                    ``(C) giving priority to those institutions with 
                existing memoranda of understanding, agreements, or 
                other formal ties to United States institutions, or 
                Federal or State agencies;'';
            (2) by striking paragraph (3) and inserting the following:
            ``(3) enter into agreements with land-grant colleges and 
        universities, Hispanic-serving agricultural colleges and 
        universities, the Agency for International Development, and 
        international organizations (such as the United Nations, the 
        World Bank, regional development banks, international 
        agricultural research centers), or other organizations, 
        institutions, or individuals with comparable goals, to promote 
        and support--
                    ``(A) the development of a viable and sustainable 
                global agricultural system;
                    ``(B) antihunger and improved international 
                nutrition efforts; and
                    ``(C) increased quantity, quality, and availability 
                of food;'';
            (3) in paragraph (7)(A), by striking ``and land-grant 
        colleges and universities'' and inserting ``, land-grant 
        colleges and universities, and Hispanic-serving agricultural 
        colleges and universities'';
            (4) in paragraph (9)--
                    (A) in subparagraph (A), by striking ``or other 
                colleges and universities'' and inserting ``, Hispanic-
                serving agricultural colleges and universities, or 
                other colleges and universities''; and
                    (B) in subparagraph (D), by striking ``and'' at the 
                end;
            (5) in paragraph (10), by striking the period at the end 
        and inserting ``; and''; and
            (6) by adding at the end the following:
            ``(11) establish a program for the purpose of providing 
        fellowships to United States or foreign students to study at 
        foreign agricultural colleges and universities working under 
        agreements provided for under paragraph (3).''.

SEC. 7131. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE 
              AND EDUCATION PROGRAMS.

    Section 1459A(c) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3292b(c)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7132. ADMINISTRATION.

    (a) Limitation on Indirect Costs for Agricultural Research, 
Education, and Extension Programs.--Section 1462(a) of the National 
Agriculture Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3310(a)) is amended--
            (1) by striking ``a competitive'' and inserting ``any''; 
        and
            (2) by striking ``19 percent'' and inserting ``22 
        percent''.
    (b) Auditing, Reporting, Bookkeeping, and Administrative 
Requirements.--Section 1469(a)(3) of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3315(a)(3)) is amended by striking ``appropriated'' and inserting 
``made available''.

SEC. 7133. RESEARCH EQUIPMENT GRANTS.

    Section 1462A(e) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3310a(e)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7134. UNIVERSITY RESEARCH.

    Section 1463 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended by striking 
``2007'' each place it appears in subsections (a) and (b) and inserting 
``2012''.

SEC. 7135. EXTENSION SERVICE.

    Section 1464 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking 
``2007'' and inserting ``2012''.

SEC. 7136. SUPPLEMENTAL AND ALTERNATIVE CROPS.

    Section 1473D(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3319d(a)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7137. NEW ERA RURAL TECHNOLOGY PROGRAM.

    Subtitle K of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) is amended by 
adding at the end the following:

``SEC. 1473E. NEW ERA RURAL TECHNOLOGY PROGRAM.

    ``(a) Definition of Community College.--In this section, the term 
`community college' means an institution of higher education (as 
defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 
1001))--
            ``(1) that admits as regular students individuals who--
                    ``(A) are beyond the age of compulsory school 
                attendance in the State in which the institution is 
                located; and
                    ``(B) have the ability to benefit from the training 
                offered by the institution;
            ``(2) that does not provide an educational program for 
        which the institution awards a bachelor's degree or an 
        equivalent degree; and
            ``(3) that--
                    ``(A) provides an educational program of not less 
                than 2 years that is acceptable for full credit toward 
                such a degree; or
                    ``(B) offers a 2-year program in engineering, 
                technology, mathematics, or the physical, chemical, or 
                biological sciences, designed to prepare a student to 
                work as a technician or at the semiprofessional level 
                in engineering, scientific, or other technological 
                fields requiring the understanding and application of 
                basic engineering, scientific, or mathematical 
                principles of knowledge.
    ``(b) Functions.--
            ``(1) Establishment.--
                    ``(A) In general.--The Secretary shall establish a 
                program to be known as the `New Era Rural Technology 
                Program', to make grants available for technology 
                development, applied research, and training to aid in 
                the development of an agriculture-based renewable 
                energy workforce.
                    ``(B) Support.--The initiative under this section 
                shall support the fields of--
                            ``(i) bioenergy;
                            ``(ii) pulp and paper manufacturing; and
                            ``(iii) agriculture-based renewable energy 
                        resources.
            ``(2) Requirements for funding.--To receive funding under 
        this section, an entity shall--
                    ``(A) be a community college or advanced 
                technological center, located in a rural area and in 
                existence on the date of the enactment of this section, 
                that participates in agricultural or bioenergy research 
                and applied research;
                    ``(B) have a proven record of development and 
                implementation of programs to meet the needs of 
                students, educators, and business and industry to 
                supply the agriculture-based, renewable energy or pulp 
                and paper manufacturing fields with certified 
                technicians, as determined by the Secretary; and
                    ``(C) have the ability to leverage existing 
                partnerships and occupational outreach and training 
                programs for secondary schools, 4-year institutions, 
                and relevant nonprofit organizations.
    ``(c) Grant Priority.--In providing grants under this section, the 
Secretary shall give preference to eligible entities working in 
partnership--
            ``(1) to improve information-sharing capacity; and
            ``(2) to maximize the ability to meet the requirements of 
        this section.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary for 
each of fiscal years 2008 through 2012.''.

SEC. 7138. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS.

    Subtitle K of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended by 
section 7137) is amended by adding at the end the following:

``SEC. 1473F. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS.

    ``(a) Grant Program.--
            ``(1) In general.--The Secretary shall make competitive 
        grants to NLGCA Institutions to assist the NLGCA Institutions 
        in maintaining and expanding the capacity of the NLGCA 
        Institutions to conduct education, research, and outreach 
        activities relating to--
                    ``(A) agriculture;
                    ``(B) renewable resources; and
                    ``(C) other similar disciplines.
            ``(2) Use of funds.--An NLGCA Institution that receives a 
        grant under paragraph (1) may use the funds made available 
        through the grant to maintain and expand the capacity of the 
        NLGCA Institution--
                    ``(A) to successfully compete for funds from 
                Federal grants and other sources to carry out 
                educational, research, and outreach activities that 
                address priority concerns of national, regional, State, 
                and local interest;
                    ``(B) to disseminate information relating to 
                priority concerns to--
                            ``(i) interested members of the 
                        agriculture, renewable resources, and other 
                        relevant communities;
                            ``(ii) the public; and
                            ``(iii) any other interested entity;
                    ``(C) to encourage members of the agriculture, 
                renewable resources, and other relevant communities to 
                participate in priority education, research, and 
                outreach activities by providing matching funding to 
                leverage grant funds; and
                    ``(D) through--
                            ``(i) the purchase or other acquisition of 
                        equipment and other infrastructure (not 
                        including alteration, repair, renovation, or 
                        construction of buildings);
                            ``(ii) the professional growth and 
                        development of the faculty of the NLGCA 
                        Institution; and
                            ``(iii) the development of graduate 
                        assistantships.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary for 
each of fiscal years 2008 through 2012.''.

SEC. 7139. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND TECHNOLOGY 
              FELLOWSHIP PROGRAM.

    Subtitle K of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3310 et seq.) (as amended by 
section 7138) is amended by adding at the end the following:

``SEC. 1473G. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND TECHNOLOGY 
              FELLOWSHIP PROGRAM.

    ``(a) Fellowship Program.--
            ``(1) In general.--The Secretary shall establish a 
        fellowship program, to be known as the `Borlaug International 
        Agricultural Science and Technology Fellowship Program,' to 
        provide fellowships for scientific training and study in the 
        United States to individuals from eligible countries (as 
        described in subsection (b)) who specialize in agricultural 
        education, research, and extension.
            ``(2) Programs.--The Secretary shall carry out the 
        fellowship program by implementing 3 programs designed to 
        assist individual fellowship recipients, including--
                    ``(A) a graduate studies program in agriculture to 
                assist individuals who participate in graduate 
                agricultural degree training at a United States 
                institution;
                    ``(B) an individual career improvement program to 
                assist agricultural scientists from developing 
                countries in upgrading skills and understanding in 
                agricultural science and technology; and
                    ``(C) a Borlaug agricultural policy executive 
                leadership course to assist senior agricultural policy 
                makers from eligible countries, with an initial focus 
                on individuals from sub-Saharan Africa and the 
                independent states of the former Soviet Union.
    ``(b) Eligible Countries.--An eligible country is a developing 
country, as determined by the Secretary using a gross national income 
per capita test selected by the Secretary.
    ``(c) Purpose of Fellowships.--A fellowship provided under this 
section shall--
            ``(1) promote food security and economic growth in eligible 
        countries by--
                    ``(A) educating a new generation of agricultural 
                scientists;
                    ``(B) increasing scientific knowledge and 
                collaborative research to improve agricultural 
                productivity; and
                    ``(C) extending that knowledge to users and 
                intermediaries in the marketplace; and
            ``(2) shall support--
                    ``(A) training and collaborative research 
                opportunities through exchanges for entry level 
                international agricultural research scientists, 
                faculty, and policymakers from eligible countries;
                    ``(B) collaborative research to improve 
                agricultural productivity;
                    ``(C) the transfer of new science and agricultural 
                technologies to strengthen agricultural practice; and
                    ``(D) the reduction of barriers to technology 
                adoption.
    ``(d) Fellowship Recipients.--
            ``(1) Eligible candidates.--The Secretary may provide 
        fellowships under this section to individuals from eligible 
        countries who specialize or have experience in agricultural 
        education, research, extension, or related fields, including--
                    ``(A) individuals from the public and private 
                sectors; and
                    ``(B) private agricultural producers.
            ``(2) Candidate identification.--The Secretary shall use 
        the expertise of United States land-grant colleges and 
        universities and similar universities, international 
        organizations working in agricultural research and outreach, 
        and national agricultural research organizations to help 
        identify program candidates for fellowships under this section 
        from the public and private sectors of eligible countries.
    ``(e) Use of Fellowships.--A fellowship provided under this section 
shall be used--
            ``(1) to promote collaborative programs among agricultural 
        professionals of eligible countries, agricultural professionals 
        of the United States, the international agricultural research 
        system, and, as appropriate, United States entities conducting 
        research; and
            ``(2) to support fellowship recipients through programs 
        described in subsection (a)(2).
    ``(f) Program Implementation.--The Secretary shall provide for the 
management, coordination, evaluation, and monitoring of the Borlaug 
International Agricultural Science and Technology Fellowship Program 
and for the individual programs described in subsection (a)(2), except 
that the Secretary may contract out to 1 or more collaborating 
universities the management of 1 or more of the fellowship programs.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section, to 
remain available until expended.''.

SEC. 7140. AQUACULTURE ASSISTANCE PROGRAMS.

    Section 1477 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3324) is amended by striking 
``2007'' and inserting ``2012''.

SEC. 7141. RANGELAND RESEARCH GRANTS.

    Section 1483(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7142. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND RESPONSE.

    Section 1484(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3351(a)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7143. RESIDENT INSTRUCTION AND DISTANCE EDUCATION GRANTS PROGRAM 
              FOR INSULAR AREA INSTITUTIONS OF HIGHER EDUCATION.

    (a) Distance Education Grants for Insular Areas.--Section 1490(f) 
of the National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3362(f)) is amended by striking ``2007'' and 
inserting ``2012''.
    (b) Resident Instruction Grants for Insular Areas.--Section 1491 of 
the National Agricultural Research, Extension, and Teaching Policy Act 
of 1977 (7 U.S.C. 3363) is amended--
            (1) by redesignating subsection (e) as subsection (c); and
            (2) in subsection (c) (as so redesignated), by striking 
        ``2007'' and inserting ``2012''.

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

SEC. 7201. NATIONAL GENETICS RESOURCES PROGRAM.

    Section 1635(b) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5844(b)) is amended by striking ``2007'' and 
inserting ``2012''.

SEC. 7202. NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.

    Section 1641(c) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5855(c)) is amended by striking ``1991 through 
1997'' and inserting ``2008 through 2012''.

SEC. 7203. PARTNERSHIPS.

    Section 1672(d) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5925(d)) is amended by striking ``may'' and 
inserting ``shall''.

SEC. 7204. HIGH-PRIORITY RESEARCH AND EXTENSION AREAS.

    (a) In General.--Section 1672 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5925) is amended--
            (1) in subsection (e)--
                    (A) in paragraph (3), by striking ``and controlling 
                aflatoxin in the food and feed chains.'' and inserting 
                ``, improving, and eventually commercializing, 
                alfatoxin controls in corn and other affected 
                agricultural products and crops.'';
                    (B) by striking paragraphs (1), (4), (7), (8), 
                (15), (17), (21), (23), (26), (27), (32), (34), (41), 
                (42), (43), and (45);
                    (C) by redesignating paragraphs (2), (3), (5), (6), 
                (9) through (14), (16), (18) through (20), (22), (24), 
                (25), (28) through (31), (33), (35) through (40), and 
                (44) as paragraphs (1) through (29), respectively; and
                    (D) by adding at the end the following:
            ``(30) Air emissions from livestock operations.--Research 
        and extension grants may be made under this section for the 
        purpose of conducting field verification tests and developing 
        mitigation options for air emissions from animal feeding 
        operations.
            ``(31) Swine genome project.--Research grants may be made 
        under this section to conduct swine genome research, including 
        the mapping of the swine genome.
            ``(32) Cattle fever tick program.--Research and extension 
        grants may be made under this section to study cattle fever 
        ticks to facilitate understanding of the role of wildlife in 
        the persistence and spread of cattle fever ticks, to develop 
        advanced methods for eradication of cattle fever ticks, and to 
        improve management of diseases relating to cattle fever ticks 
        that are associated with wildlife, livestock, and human health.
            ``(33) Synthetic gypsum.--Research and extension grants may 
        be made under this section to study the uses of synthetic 
        gypsum from electric power plants to remediate soil and 
        nutrient losses.
            ``(34) Cranberry research program.--Research and extension 
        grants may be made under this section to study new technologies 
        to assist cranberry growers in complying with Federal and State 
        environmental regulations, increase production, develop new 
        growing techniques, establish more efficient growing 
        methodologies, and educate cranberry producers about 
        sustainable growth practices.
            ``(35) Sorghum research initiative.--Research and extension 
        grants may be made under this section to study the use of 
        sorghum as a bioenergy feedstock, promote diversification in, 
        and the environmental benefits of sorghum production, and 
        promote water conservation through the use of sorghum.
            ``(36) Marine shrimp farming program.--Research and 
        extension grants may be made under this section to establish a 
        research program to advance and maintain a domestic shrimp 
        farming industry in the United States.
            ``(37) Turfgrass research initiative.--Research and 
        extension grants may be made under this section to study the 
        production of turfgrass (including the use of water, 
        fertilizer, pesticides, fossil fuels, and machinery for turf 
        establishment and maintenance) and environmental protection and 
        enhancement relating to turfgrass production.
            ``(38) Agricultural worker safety research initiative.--
        Research and extension grants may be made under this section--
                    ``(A) to study and demonstrate methods to minimize 
                exposure of farm and ranch owners and operators, 
                pesticide handlers, and agricultural workers to 
                pesticides, including research addressing the unique 
                concerns of farm workers resulting from long-term 
                exposure to pesticides; and
                    ``(B) to develop rapid tests for on-farm use to 
                better inform and educate farmers, ranchers, and farm 
                and ranch workers regarding safe field re-entry 
                intervals.
            ``(39) High plains aquifer region.--Research and extension 
        grants may be made under this section to carry out 
        interdisciplinary research relating to diminishing water levels 
        and increased demand for water in the High Plains aquifer 
        region.
            ``(40) Deer initiative.--Research and extension grants may 
        be made under this section to support collaborative research 
        focusing on the development of viable strategies for the 
        prevention, diagnosis, and treatment of infectious, parasitic, 
        and toxic diseases of farmed deer and the mapping of the deer 
        genome.
            ``(41) Pasture-based beef systems research initiative.--
        Research and extension grants may be made under this section to 
        study the development of forage sequences and combinations for 
        cow-calf, heifer development, stocker, and finishing systems, 
        to deliver optimal nutritive value for efficient production of 
        cattle for pasture finishing, to optimize forage systems to 
        improve marketability of pasture-finished beef, and to assess 
        the effect of forage quality on reproductive fitness.
            ``(42) Agricultural practices relating to climate change.--
        Research and extension grants may be made under this section 
        for field and laboratory studies that examine the ecosystem 
        from gross to minute scales and for projects that explore the 
        relationship of agricultural practices to climate change.
            ``(43) Brucellosis control and eradication.--Research and 
        extension grants may be made under this section to conduct 
        research relating to the development of vaccines and vaccine 
        delivery systems to effectively control and eliminate 
        brucellosis in wildlife, and to assist with the controlling of 
        the spread of brucellosis from wildlife to domestic animals.
            ``(44) Bighorn and domestic sheep disease mechanisms.--
        Research and extension grants may be made under this section to 
        conduct research relating to the health status of (including 
        the presence of infectious diseases in) bighorn and domestic 
        sheep under range conditions.
            ``(45) Agricultural development in the american-pacific 
        region.--Research and extension grants may be made under this 
        section to support food and agricultural science at a 
        consortium of land-grant institutions in the American-Pacific 
        region.
            ``(46) Tropical and subtropical agricultural research.--
        Research grants may be made under this section, in equal dollar 
        amounts to the Caribbean and Pacific Basins, to support 
        tropical and subtropical agricultural research, including pest 
        and disease research, at the land-grant institutions in the 
        Caribbean and Pacific regions.
            ``(47) Viral hemorrhagic septicemia.--Research and 
        extension grants may be made under this section to study--
                    ``(A) the effects of viral hemorrhagic septicemia 
                (referred to in this paragraph as `VHS') on freshwater 
                fish throughout the natural and expanding range of VHS; 
                and
                    ``(B) methods for transmission and human-mediated 
                transport of VHS among waterbodies.
            ``(48) Farm and ranch safety.--Research and extension 
        grants may be made under this section to carry out projects to 
        decrease the incidence of injury and death on farms and 
        ranches, including--
                    ``(A) on-site farm or ranch safety reviews;
                    ``(B) outreach and dissemination of farm safety 
                research and interventions to agricultural employers, 
                employees, youth, farm and ranch families, seasonal 
                workers, or other individuals; and
                    ``(C) agricultural safety education and training.
            ``(49) Women and minorities in stem fields.--Research and 
        extension grants may be made under this section to increase 
        participation by women and underrepresented minorities from 
        rural areas in the fields of science, technology, engineering, 
        and mathematics, with priority given to eligible institutions 
        that carry out continuing programs funded by the Secretary.
            ``(50) Alfalfa and forage research program.--Research and 
        extension grants may be made under this section for the purpose 
        of studying improvements in alfalfa and forage yields, biomass 
        and persistence, pest pressures, the bioenergy potential of 
        alfalfa and other forages, and systems to reduce losses during 
        harvest and storage.
            ``(51) Food systems veterinary medicine.--Research grants 
        may be made under this section to address health issues that 
        affect food-producing animals, food safety, and the 
        environment, and to improve information resources, curriculum, 
        and clinical education of students with respect to food animal 
        veterinary medicine and food safety.
            ``(52) Biochar research.--Grants may be made under this 
        section for research, extension, and integrated activities 
        relating to the study of biochar production and use, including 
        considerations of agronomic and economic impacts, synergies of 
        coproduction with bioenergy, and the value of soil enhancements 
        and soil carbon sequestration.'';
            (2) by redesignating subsection (h) as subsection (j);
            (3) by inserting after subsection (g) the following:
    ``(h) Pollinator Protection.--
            ``(1) Research and extension.--
                    ``(A) Grants.--Research and extension grants may be 
                made under this section--
                            ``(i) to survey and collect data on bee 
                        colony production and health;
                            ``(ii) to investigate pollinator biology, 
                        immunology, ecology, genomics, and 
                        bioinformatics;
                            ``(iii) to conduct research on various 
                        factors that may be contributing to or 
                        associated with colony collapse disorder, and 
                        other serious threats to the health of honey 
                        bees and other pollinators, including--
                                    ``(I) parasites and pathogens of 
                                pollinators; and
                                    ``(II) the sublethal effects of 
                                insecticides, herbicides, and 
                                fungicides on honey bees and native and 
                                managed pollinators;
                            ``(iv) to develop mitigative and 
                        preventative measures to improve native and 
                        managed pollinator health; and
                            ``(v) to promote the health of honey bees 
                        and native pollinators through habitat 
                        conservation and best management practices.
                    ``(B) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $10,000,000 for each of fiscal years 2008 
                through 2012.
            ``(2) Department of agriculture capacity and 
        infrastructure.--
                    ``(A) In general.--The Secretary shall, to the 
                maximum extent practicable, increase the capacity and 
                infrastructure of the Department--
                            ``(i) to address colony collapse disorder 
                        and other long-term threats to pollinator 
                        health, including the hiring of additional 
                        personnel; and
                            ``(ii) to conduct research on colony 
                        collapse disorder and other pollinator issues 
                        at the facilities of the Department.
                    ``(B) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $7,250,000 for each of fiscal years 2008 
                through 2012.
            ``(3) Honey bee pest and pathogen surveillance.--There is 
        authorized to be appropriated to conduct a nationwide honey bee 
        pest and pathogen surveillance program $2,750,000 for each of 
        fiscal years 2008 through 2012.
            ``(4) Annual report on response to honey bee colony 
        collapse disorder.--The Secretary shall submit to the Committee 
        on Agriculture of the House of Representatives and the 
        Committee on Agriculture, Nutrition, and Forestry of the Senate 
        an annual report describing the progress made by the Department 
        of Agriculture in--
                    ``(A) investigating the cause or causes of honey 
                bee colony collapse; and
                    ``(B) finding appropriate strategies to reduce 
                colony loss.
    ``(i) Regional Centers of Excellence.--
            ``(1) Establishment.--The Secretary shall prioritize 
        regional centers of excellence established for specific 
        agricultural commodities for the receipt of funding under this 
        section.
            ``(2) Composition.--A regional center of excellence shall 
        be composed of 1 or more colleges and universities (including 
        land-grant institutions, schools of forestry, schools of 
        veterinary medicine, or NLGCA Institutions (as defined in 
        section 1404 of the National Agricultural Research, Extension, 
        and Teaching Policy Act of 1977 (7 U.S.C. 3103))) that provide 
        financial support to the regional center of excellence.
            ``(3) Criteria for regional centers of excellence.--The 
        criteria for consideration to be a regional center of 
        excellence shall include efforts--
                    ``(A) to ensure coordination and cost-effectiveness 
                by reducing unnecessarily duplicative efforts regarding 
                research, teaching, and extension;
                    ``(B) to leverage available resources by using 
                public/private partnerships among agricultural industry 
                groups, institutions of higher education, and the 
                Federal Government;
                    ``(C) to implement teaching initiatives to increase 
                awareness and effectively disseminate solutions to 
                target audiences through extension activities;
                    ``(D) to increase the economic returns to rural 
                communities by identifying, attracting, and directing 
                funds to high-priority agricultural issues; and
                    ``(E) to improve teaching capacity and 
                infrastructure at colleges and universities (including 
                land-grant institutions, schools of forestry, and 
                schools of veterinary medicine).''; and
            (4) in subsection (j) (as redesignated by paragraph (2)), 
        by striking ``2007'' and inserting ``2012''.
    (b) Conforming Amendments.--Section 1672 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5925) is amended--
            (1) in the first sentence of subsection (a), by striking 
        ``(e), (f), and (g)'' and inserting ``(e) through (i)''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``paragraphs (1), 
                (6), (7), and (11)'' and inserting ``paragraphs (4), 
                (7), (8), and (11)(B)''; and
                    (B) in paragraph (2), by striking ``subsection 
                (e)'' and inserting ``subsections (e) through (i)''.

SEC. 7205. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION INITIATIVE.

    Section 1672A of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5925a) is amended--
            (1) in subsection (b), by striking paragraph (1) and 
        inserting the following:
            ``(1) In general.--Paragraphs (4), (7), (8), and (11)(B) of 
        subsection (b) of the Competitive, Special, and Facilities 
        Research Grant Act (7 U.S.C. 450i) shall apply with respect to 
        the making of grants under this section.'';
            (2) by striking subsection (d) and inserting the following:
    ``(d) Priority.--Following the completion of a peer review process 
for grant proposals received under this section, the Secretary shall 
give priority to those grant proposals that involve--
            ``(1) the cooperation of multiple entities; and
            ``(2) States or regions with a high concentration of 
        livestock, dairy, or poultry operations.'';
            (3) in subsection (e)--
                    (A) in paragraph (1)(B), by inserting ``and dairy 
                and beef cattle waste'' after ``swine waste''; and
                    (B) by striking paragraph (5) and inserting the 
                following:
            ``(5) Alternative uses and renewable energy.--Research and 
        extension grants may be made under this section for the purpose 
        of finding innovative methods and technologies to allow 
        agricultural operators to make use of animal waste, such as use 
        as fertilizer, methane digestion, composting, and other useful 
        byproducts.'';
            (4) by redesignating subsection (g) as subsection (f); and
            (5) in subsection (f) (as so redesignated), by striking 
        ``2007'' and inserting ``2012''.

SEC. 7206. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE.

    (a) In General.--Section 1672B of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5925b) (commonly known as 
the ``Organic Agriculture Research and Extension Initiative'') is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (5), by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (6), by striking the period at the 
                end and inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(7) examining optimal conservation and environmental 
        outcomes relating to organically produced agricultural 
        products; and
            ``(8) developing new and improved seed varieties that are 
        particularly suited for organic agriculture.''; and
            (2) by adding at the end the following:
    ``(f) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall make available to carry out 
        this section--
                    ``(A) $18,000,000 for fiscal year 2009; and
                    ``(B) $20,000,000 for each of fiscal years 2010 
                through 2012.
            ``(2) Additional funding.--In addition to amounts made 
        available under paragraph (1), there is authorized to be 
        appropriated to carry out this section $25,000,000 for each of 
        fiscal years 2009 through 2012.''.
    (b) Coordination.--In carrying out the amendment made by this 
section, the Secretary shall ensure that the Division Chief of the 
applicable Research, Education, and Extension Office established under 
section 251 of the Department of Agriculture Reorganization Act of 1994 
(7 U.S.C. 6971) coordinates projects and activities under this section 
to ensure, to the maximum extent practicable, that unnecessary 
duplication of effort is eliminated or minimized.

SEC. 7207. AGRICULTURAL BIOENERGY FEEDSTOCK AND ENERGY EFFICIENCY 
              RESEARCH AND EXTENSION INITIATIVE.

    Title XVI of the Food, Agriculture, Conservation, and Trade Act of 
1990 (7 U.S.C. 5801 et seq.) is amended by inserting after section 
1672B (7 U.S.C. 5925b) the following:

``SEC. 1672C. AGRICULTURAL BIOENERGY FEEDSTOCK AND ENERGY EFFICIENCY 
              RESEARCH AND EXTENSION INITIATIVE.

    ``(a) Establishment and Purpose.--There is established within the 
Department of Agriculture an agricultural bioenergy feedstock and 
energy efficiency research and extension initiative (referred to in 
this section as the `Initiative') for the purpose of enhancing the 
production of biomass energy crops and the energy efficiency of 
agricultural operations.
    ``(b) Competitive Research and Extension Grants Authorized.--In 
carrying out this section, the Secretary shall make competitive grants 
to support research and extension activities specified in subsections 
(c) and (d).
    ``(c) Agricultural Bioenergy Feedstock Research and Extension 
Areas.--
            ``(1) In general.--Agricultural bioenergy feedstock 
        research and extension activities funded under the Initiative 
        shall focus on improving agricultural biomass production, 
        biomass conversion in biorefineries, and biomass use by--
                    ``(A) supporting on-farm research on crop species, 
                nutrient requirements, management practices, 
                environmental impacts, and economics;
                    ``(B) supporting the development and operation of 
                on-farm, integrated biomass feedstock production 
                systems;
                    ``(C) leveraging the broad scientific capabilities 
                of the Department of Agriculture and other entities 
                in--
                            ``(i) plant genetics and breeding;
                            ``(ii) crop production;
                            ``(iii) soil and water science;
                            ``(iv) use of agricultural waste; and
                            ``(v) carbohydrate, lipid, protein, and 
                        lignin chemistry, enzyme development, and 
                        biochemistry; and
                    ``(D) supporting the dissemination of any of the 
                research conducted under this subsection that will 
                assist in achieving the goals of this section.
            ``(2) Selection criteria.--In selecting grant recipients 
        for projects under paragraph (1), the Secretary shall 
        consider--
                    ``(A) the capabilities and experiences of the 
                applicant, including--
                            ``(i) research in actual field conditions; 
                        and
                            ``(ii) engineering and research knowledge 
                        relating to biofuels or the production of 
                        inputs for biofuel production;
                    ``(B) the range of species types and cropping 
                practices proposed for study (including species types 
                and practices studied using side-by-side comparisons of 
                those types and practices);
                    ``(C) the need for regional diversity among 
                feedstocks;
                    ``(D) the importance of developing multiyear data 
                relevant to the production of biomass feedstock crops;
                    ``(E) the extent to which the project involves 
                direct participation of agricultural producers;
                    ``(F) the extent to which the project proposal 
                includes a plan or commitment to use the biomass 
                produced as part of the project in commercial channels; 
                and
                    ``(G) such other factors as the Secretary may 
                determine.
    ``(d) Energy-Efficiency Research and Extension Areas.--On-farm 
energy-efficiency research and extension activities funded under the 
Initiative shall focus on developing and demonstrating technologies and 
production practices relating to--
            ``(1) improving on-farm renewable energy production;
            ``(2) encouraging efficient on-farm energy use;
            ``(3) promoting on-farm energy conservation;
            ``(4) making a farm or ranch energy-neutral; and
            ``(5) enhancing on-farm usage of advanced technologies to 
        promote energy efficiency.
    ``(e) Best Practices Database.--The Secretary shall develop a best-
practices database that includes information, to be available to the 
public, on--
            ``(1) the production potential of a variety of biomass 
        crops; and
            ``(2) best practices for production, collection, 
        harvesting, storage, and transportation of biomass crops to be 
        used as a source of bioenergy.
    ``(f) Administration.--
            ``(1) In general.--Paragraphs (4), (7), (8), and (11)(B) of 
        subsection (b) of the Competitive, Special, and Facilities 
        Research Grant Act (7 U.S.C. 450i(b)) shall apply with respect 
        to making grants under this section.
            ``(2) Consultation and coordination.--The Secretary shall--
                    ``(A) make the grants in consultation with the 
                National Agricultural Research, Extension, Education, 
                and Economics Advisory Board; and
                    ``(B) coordinate projects and activities carried 
                out under the Initiative with projects and activities 
                under section 9008 of the Farm Security and Rural 
                Investment Act of 2002 to ensure, to the maximum extent 
                practicable, that--
                            ``(i) unnecessary duplication of effort is 
                        eliminated or minimized; and
                            ``(ii) the respective strengths of the 
                        Department of Agriculture and the Department of 
                        Energy are appropriately used.
            ``(3) Grant priority.--The Secretary shall give priority to 
        grant applications that integrate research and extension 
        activities established under subsections (c) and (d), 
        respectively.
            ``(4) Matching funds required.--As a condition of receiving 
        a grant under this section, the Secretary shall require the 
        recipient of the grant to provide funds or in-kind support from 
        non-Federal sources in an amount that is at least equal to the 
        amount provided by the Federal Government.
            ``(5) Partnerships encouraged.--Following the completion of 
        a peer review process for grant proposals received under this 
        section, the Secretary may provide a priority to those grant 
        proposals found as a result of the peer review process--
                    ``(A) to be scientifically meritorious; and
                    ``(B) that involve cooperation--
                            ``(i) among multiple entities; and
                            ``(ii) with agricultural producers.
    ``(g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000 for each of fiscal 
years 2008 through 2012.''.

SEC. 7208. FARM BUSINESS MANAGEMENT AND BENCHMARKING.

    The Food, Agriculture, Conservation and Trade Act of 1990 is 
amended by inserting after section 1672C (as added by section 7207) the 
following:

``SEC. 1672D. FARM BUSINESS MANAGEMENT.

    ``(a) In General.--The Secretary may make competitive research and 
extension grants for the purpose of--
            ``(1) improving the farm management knowledge and skills of 
        agricultural producers; and
            ``(2) establishing and maintaining a national, publicly 
        available farm financial management database to support 
        improved farm management.
    ``(b) Selection Criteria.--In allocating funds made available to 
carry out this section, the Secretary may give priority to grants 
that--
            ``(1) demonstrate an ability to work directly with 
        agricultural producers;
            ``(2) collaborate with farm management and producer 
        associations;
            ``(3) address the farm management needs of a variety of 
        crops and regions of the United States; and
            ``(4) use and support the national farm financial 
        management database.
    ``(c) Administration.--Paragraphs (4), (7), (8), and (11)(B) of 
subsection (b) of the Competitive, Special, and Facilities Research 
Grant Act (7 U.S.C. 450i(b)) shall apply with respect to the making of 
grants under this section.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.

SEC. 7209. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

    Section 1673 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5926) is repealed.

SEC. 7210. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.

    Section 1680(c)(1) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by striking ``2007'' 
and inserting ``2012''.

SEC. 7211. RESEARCH ON HONEY BEE DISEASES.

    Section 1681 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5934) is repealed.

SEC. 7212. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

    Section 2381(e) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking ``2007'' and 
inserting ``2012''.

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

SEC. 7301. PEER AND MERIT REVIEW.

    Section 103(a) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7613(a)) is amended by adding at 
the end the following:
            ``(3) Consideration.--Peer and merit review procedures 
        established under paragraphs (1) and (2) shall not take the 
        offer or availability of matching funds into consideration.''.

SEC. 7302. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT QUALITY 
              RESEARCH.

    Section 402 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7622) is repealed.

SEC. 7303. PRECISION AGRICULTURE.

    Section 403 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7623) is repealed.

SEC. 7304. BIOBASED PRODUCTS.

    (a) Pilot Project.--Section 404(e)(2) of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7624(e)(2)) is 
amended by striking ``2007'' and inserting ``2012''.
    (b) Authorization of Appropriations.--Section 404(h) of the 
Agricultural Research, Extension, and Education Reform Act of 1998 (7 
U.S.C. 7624(h)) is amended by striking ``2007'' and inserting ``2012''.

SEC. 7305. THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICATION.

    Section 405 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7625) is repealed.

SEC. 7306. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION COMPETITIVE 
              GRANTS PROGRAM.

    Section 406(f) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7626(f)) is amended by striking 
``2007'' and inserting ``2012''.

SEC. 7307. FUSARIUM GRAMINEARUM GRANTS.

    Section 408 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7628) is amended--
            (1) in subsection (a), in the subsection heading, by 
        striking ``Grant'' and inserting ``Grants''; and
            (2) in subsection (e), by striking ``2007'' and inserting 
        ``2012''.

SEC. 7308. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.

    Section 409(b) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7629(b)) is amended by striking 
``2007'' and inserting ``2012''.

SEC. 7309. GRANTS FOR YOUTH ORGANIZATIONS.

    Section 410 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7630) is amended by striking subsections 
(b) and (c) and inserting the following:
    ``(b) Flexibility.--The Secretary shall provide maximum flexibility 
in content delivery to each organization receiving funds under this 
section so as to ensure that the unique goals of each organization, as 
well as the local community needs, are fully met.
    ``(c) Redistribution of Funding Within Organizations Authorized.--
Recipients of funds under this section may redistribute all or part of 
the funds received to individual councils or local chapters within the 
councils without further need of approval from the Secretary.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary for 
each of fiscal years 2008 through 2012.''.

SEC. 7310. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND DEVELOPMENT FOR 
              DEVELOPING COUNTRIES.

    Section 411(c) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7631(c)) is amended by striking 
``2007'' and inserting ``2012''.

SEC. 7311. SPECIALTY CROP RESEARCH INITIATIVE.

    (a) In General.--Title IV of the Agricultural Research, Extension, 
and Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) is amended by 
adding at the end the following:

``SEC. 412. SPECIALTY CROP RESEARCH INITIATIVE.

    ``(a) Definitions.--In this section:
            ``(1) Initiative.--The term `Initiative' means the 
        specialty crop research and extension initiative established by 
        subsection (b).
            ``(2) Specialty crop.--The term `specialty crop' has the 
        meaning given that term in section 3 of the Specialty Crops 
        Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 
        108-465).
    ``(b) Establishment.--There is established within the Department a 
specialty crop research and extension initiative to address the 
critical needs of the specialty crop industry by developing and 
disseminating science-based tools to address needs of specific crops 
and their regions, including--
            ``(1) research in plant breeding, genetics, and genomics to 
        improve crop characteristics, such as--
                    ``(A) product, taste, quality, and appearance;
                    ``(B) environmental responses and tolerances;
                    ``(C) nutrient management, including plant nutrient 
                uptake efficiency;
                    ``(D) pest and disease management, including 
                resistance to pests and diseases resulting in reduced 
                application management strategies; and
                    ``(E) enhanced phytonutrient content;
            ``(2) efforts to identify and address threats from pests 
        and diseases, including threats to specialty crop pollinators;
            ``(3) efforts to improve production efficiency, 
        productivity, and profitability over the long term (including 
        specialty crop policy and marketing);
            ``(4) new innovations and technology, including improved 
        mechanization and technologies that delay or inhibit ripening; 
        and
            ``(5) methods to prevent, detect, monitor, control, and 
        respond to potential food safety hazards in the production and 
        processing of specialty crops, including fresh produce.
    ``(c) Eligible Entities.--The Secretary may carry out the 
Initiative through--
            ``(1) Federal agencies;
            ``(2) national laboratories;
            ``(3) colleges and universities;
            ``(4) research institutions and organizations;
            ``(5) private organizations or corporations;
            ``(6) State agricultural experiment stations;
            ``(7) individuals; or
            ``(8) groups consisting of 2 or more entities described in 
        paragraphs (1) through (7).
    ``(d) Research Projects.--In carrying out this section, the 
Secretary shall award grants on a competitive basis.
    ``(e) Administration.--
            ``(1) In general.--With respect to grants awarded under 
        subsection (d), the Secretary shall--
                    ``(A) seek and accept proposals for grants;
                    ``(B) determine the relevance and merit of 
                proposals through a system of peer and merit review in 
                accordance with section 103; and
                    ``(C) award grants on the basis of merit, quality, 
                and relevance.
            ``(2) Term.--The term of a grant under this section may not 
        exceed 10 years.
            ``(3) Matching funds required.--The Secretary shall require 
        the recipient of a grant under this section to provide funds or 
        in-kind support from non-Federal sources in an amount that is 
        at least equal to the amount provided by the Federal 
        Government.
            ``(4) Other conditions.--The Secretary may set such other 
        conditions on the award of a grant under this section as the 
        Secretary determines to be appropriate.
    ``(f) Priorities.--In making grants under this section, the 
Secretary shall provide a higher priority to projects that--
            ``(1) are multistate, multi-institutional, or 
        multidisciplinary; and
            ``(2) include explicit mechanisms to communicate results to 
        producers and the public.
    ``(g) Buildings and Facilities.--Funds made available under this 
section shall not be used for the construction of a new building or 
facility or the acquisition, expansion, remodeling, or alteration of an 
existing building or facility (including site grading and improvement, 
and architect fees).
    ``(h) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall make available to carry out 
        this section $30,000,000 for fiscal year 2008 and $50,000,000 
        for each of fiscal years 2009 through 2012, from which 
        activities under each of paragraphs (1) through (5) of 
        subsection (b) shall be allocated not less than 10 percent.
            ``(2) Authorization of appropriations.--In addition to 
        funds made available under paragraph (1), there is authorized 
        to be appropriated to carry out this section $100,000,000 for 
        each of fiscal years 2008 through 2012.
            ``(3) Transfer.--Of the funds made available to the 
        Secretary under paragraph (1) for fiscal year 2008 and 
        authorized for use for payment of administrative expenses under 
        section 1469(a)(3) of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
        3315(a)(3)), the Secretary shall transfer, upon the date of 
        enactment of this section, $200,000 to the Office of 
        Prevention, Pesticides, and Toxic Substances of the 
        Environmental Protection Agency for use in conducting a meta-
        analysis relating to methyl bromide.
            ``(4) Availability.--Funds made available pursuant to this 
        subsection for a fiscal year shall remain available until 
        expended to pay for obligations incurred in that fiscal 
        year.''.
    (b) Coordination.--In carrying out the amendment made by this 
section, the Secretary shall ensure that the Division Chief of the 
applicable Research, Education, and Extension Office established under 
section 251 of the Department of Agriculture Reorganization Act of 1994 
(7 U.S.C. 6971) coordinates projects and activities under this section 
to ensure, to the maximum extent practicable, that unnecessary 
duplication of effort is eliminated or minimized.

SEC. 7312. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE PROGRAM.

    Section 604 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7642) is amended by adding at the end the 
following:
    ``(e) Authorization of Appropriations.--In addition to any other 
funds available to carry out subsection (c), there is authorized to be 
appropriated to carry out this section $2,500,000 for each of fiscal 
years 2008 through 2012.''.

SEC. 7313. OFFICE OF PEST MANAGEMENT POLICY.

    Section 614(f) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended by striking 
``2007'' and inserting ``2012''.

                         Subtitle D--Other Laws

SEC. 7401. CRITICAL AGRICULTURAL MATERIALS ACT.

    Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C. 
178n(a)) is amended by striking ``2007'' and inserting ``2012''.

SEC. 7402. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.

    (a) Definition of 1994 Institutions.--Section 532 of the Equity in 
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public 
Law 103-382) is amended by adding at the end the following:
            ``(34) Ilisagvik College.''.
    (b) Endowment for 1994 Institutions.--Section 533 of the Equity in 
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public 
Law 103-382) is amended--
            (1) in subsection (a)(3), in the matter preceding 
        subparagraph (A), by inserting ``this section and'' before 
        ``sections 534,''; and
            (2) in the first sentence of subsection (b), by striking 
        ``2007'' and inserting ``2012''.
    (c) Redistribution.--Section 534(a)(3) of the Equity in Educational 
Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103-382) 
is amended--
            (1) by striking ``The amounts'' and inserting the 
        following:
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the amounts''; and
            (2) by adding at the end the following:
                    ``(B) Redistribution.--Funds that would be paid to 
                a 1994 Institution under paragraph (2) shall be 
                withheld from that 1994 Institution and redistributed 
                among the other 1994 Institutions if that 1994 
                Institution--
                            ``(i) declines to accept funds under 
                        paragraph (2); or
                            ``(ii) fails to meet the accreditation 
                        requirements under section 533(a)(3).''.
    (d) Institutional Capacity Building Grants.--Section 535 of the 
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; 
Public Law 103-382) is amended by striking ``2007'' each place it 
appears and inserting ``2012''.
    (e) Research Grants.--Section 536(c) of the Equity in Educational 
Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103-382) 
is amended in the first sentence by striking ``2007'' and inserting 
``2012''.
    (f) Effective Date.--The amendment made by subsection (a) takes 
effect on October 1, 2008.

SEC. 7403. SMITH-LEVER ACT.

    (a) Program.--Section 3(d) of the Smith-Lever Act (7 U.S.C. 343(d)) 
is amended in the second sentence by striking ``apply for and receive'' 
and all that follows through paragraph (2) and inserting ``compete for 
and receive funds directly from the Secretary of Agriculture.''.
    (b) Elimination of the Governor's Report Requirement for Extension 
Activities.--Section 5 of the Smith-Lever Act (7 U.S.C. 345) is amended 
by striking the third sentence.
    (c) Conforming Amendment.--Section 1444(a)(2) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3221(a)(2)) is amended by striking ``after September 30, 1995, 
under section 3(d) of that Act (7 U.S.C. 343(d))'' and all that follows 
through the end of the sentence and inserting ``under section 3(d) of 
that Act (7 U.S.C. 343(d)).''.

SEC. 7404. HATCH ACT OF 1887.

    (a) District of Columbia.--Section 3(d)(4) of the Hatch Act of 1887 
(7 U.S.C. 361c(d)(4)) is amended--
            (1) in the paragraph heading, by inserting ``and the 
        district of columbia'' after ``areas'';
            (2) in subparagraph (A)--
                    (A) by inserting ``and the District of Columbia'' 
                after ``United States''; and
                    (B) by inserting ``and the District of Columbia'' 
                after ``respectively,''; and
            (3) in subparagraph (B), by inserting ``or the District of 
        Columbia'' after ``area''.
    (b) Elimination of Penalty Mail Authorities.--
            (1) In general.--Section 6 of the Hatch Act of 1887 (7 
        U.S.C. 361f) is amended in the first sentence by striking 
        ``under penalty indicia:'' and all that follows through the end 
        of the sentence and inserting a period.
            (2) Conforming amendments in other laws.--
                    (A) National agricultural research, extension, and 
                teaching policy act of 1977.--
                            (i) Section 1444(f) of the National 
                        Agricultural Research, Extension, and Teaching 
                        Policy Act of 1977 (7 U.S.C. 3221(f)) is 
                        amended by striking ``under penalty indicia:'' 
                        and all that follows through the end of the 
                        sentence and inserting a period.
                            (ii) Section 1445(e) of the National 
                        Agricultural Research, Extension, and Teaching 
                        Policy Act of 1977 (7 U.S.C. 3222(e)) is 
                        amended by striking ``under penalty indicia:'' 
                        and all that follows through the end of the 
                        sentence and inserting a period.
                    (B) Other provisions.--Section 3202(a) of title 39, 
                United States Code, is amended--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (D), by adding 
                                ``and'' at the end;
                                    (II) in subparagraph (E), by 
                                striking ``sections; and'' and 
                                inserting ``sections.''; and
                                    (III) by striking subparagraph (F);
                            (ii) in paragraph (2), by adding ``and'' at 
                        the end;
                            (iii) in paragraph (3) by striking 
                        ``thereof; and'' and inserting ``thereof.''; 
                        and
                            (iv) by striking paragraph (4).

SEC. 7405. AGRICULTURAL EXPERIMENT STATION RESEARCH FACILITIES ACT.

    Section 6(a) of the Research Facilities Act (7 U.S.C. 390d(a)) is 
amended by striking ``2007'' and inserting ``2012''.

SEC. 7406. AGRICULTURE AND FOOD RESEARCH INITIATIVE.

    (a) In General.--Subsection (b) of the Competitive, Special, and 
Facilities Research Grant Act (7 U.S.C. 450i(b)) is amended to read as 
follows:
    ``(b) Agriculture and Food Research Initiative.--
            ``(1) Establishment.--There is established in the 
        Department of Agriculture an Agriculture and Food Research 
        Initiative under which the Secretary of Agriculture (referred 
        to in this subsection as `the Secretary') may make competitive 
        grants for fundamental and applied research, extension, and 
        education to address food and agricultural sciences (as defined 
        under section 1404 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)).
            ``(2) Priority areas.--The competitive grants program 
        established under this subsection shall address the following 
        areas:
                    ``(A) Plant health and production and plant 
                products.--Plant systems, including--
                            ``(i) plant genome structure and function;
                            ``(ii) molecular and cellular genetics and 
                        plant biotechnology;
                            ``(iii) conventional breeding, including 
                        cultivar and breed development, selection 
                        theory, applied quantitative genetics, breeding 
                        for improved food quality, breeding for 
                        improved local adaptation to biotic stress and 
                        abiotic stress, and participatory breeding;
                            ``(iv) plant-pest interactions and 
                        biocontrol systems;
                            ``(v) crop plant response to environmental 
                        stresses;
                            ``(vi) unproved nutrient qualities of plant 
                        products; and
                            ``(vii) new food and industrial uses of 
                        plant products.
                    ``(B) Animal health and production and animal 
                products.--Animal systems, including--
                            ``(i) aquaculture;
                            ``(ii) cellular and molecular basis of 
                        animal reproduction, growth, disease, and 
                        health;
                            ``(iii) animal biotechnology;
                            ``(iv) conventional breeding, including 
                        breed development, selection theory, applied 
                        quantitative genetics, breeding for improved 
                        food quality, breeding for improved local 
                        adaptation to biotic stress and abiotic stress, 
                        and participatory breeding;
                            ``(v) identification of genes responsible 
                        for improved production traits and resistance 
                        to disease;
                            ``(vi) improved nutritional performance of 
                        animals;
                            ``(vii) improved nutrient qualities of 
                        animal products and uses; and
                            ``(viii) the development of new and 
                        improved animal husbandry and production 
                        systems that take into account production 
                        efficiency, animal well-being, and animal 
                        systems applicable to aquaculture.
                    ``(C) Food safety, nutrition, and health.--
                Nutrition, food safety and quality, and health, 
                including--
                            ``(i) microbial contaminants and pesticides 
                        residue relating to human health;
                            ``(ii) links between diet and health;
                            ``(iii) bioavailability of nutrients;
                            ``(iv) postharvest physiology and 
                        practices; and
                            ``(v) improved processing technologies.
                    ``(D) Renewable energy, natural resources, and 
                environment.--Natural resources and the environment, 
                including--
                            ``(i) fundamental structures and functions 
                        of ecosystems;
                            ``(ii) biological and physical bases of 
                        sustainable production systems;
                            ``(iii) minimizing soil and water losses 
                        and sustaining surface water and ground water 
                        quality;
                            ``(iv) global climate effects on 
                        agriculture;
                            ``(v) forestry; and
                            ``(vi) biological diversity.
                    ``(E) Agriculture systems and technology.--
                Engineering, products, and processes, including--
                            ``(i) new uses and new products from 
                        traditional and nontraditional crops, animals, 
                        byproducts, and natural resources;
                            ``(ii) robotics, energy efficiency, 
                        computing, and expert systems;
                            ``(iii) new hazard and risk assessment and 
                        mitigation measures; and
                            ``(iv) water quality and management.
                    ``(F) Agriculture economics and rural 
                communities.--Markets, trade, and policy, including--
                            ``(i) strategies for entering into and 
                        being competitive in domestic and overseas 
                        markets;
                            ``(ii) farm efficiency and profitability, 
                        including the viability and competitiveness of 
                        small and medium-sized dairy, livestock, crop 
                        and other commodity operations;
                            ``(iii) new decision tools for farm and 
                        market systems;
                            ``(iv) choices and applications of 
                        technology;
                            ``(v) technology assessment; and
                            ``(vi) new approaches to rural development, 
                        including rural entrepreneurship.
            ``(3) Term.--The term of a competitive grant made under 
        this subsection may not exceed 10 years.
            ``(4) General administration.--In making grants under this 
        subsection, the Secretary shall--
                    ``(A) seek and accept proposals for grants;
                    ``(B) determine the relevance and merit of 
                proposals through a system of peer and merit review in 
                accordance with section 103 of the Agricultural 
                Research, Extension, and Education Reform Act of 1998 
                (7 U.S.C. 7613);
                    ``(C) award grants on the basis of merit, quality, 
                and relevance;
                    ``(D) solicit and consider input from persons who 
                conduct or use agricultural research, extension, or 
                education in accordance with section 102(b) of the 
                Agricultural Research, Extension, and Education Reform 
                Act of 1998 (7 U.S.C. 7612(b)); and
                    ``(E) in seeking proposals for grants under this 
                subsection and in performing peer review evaluations of 
                such proposals, seek the widest participation of 
                qualified individuals in the Federal Government, 
                colleges and universities, State agricultural 
                experiment stations, and the private sector.
            ``(5) Allocation of funds.--In making grants under this 
        subsection, the Secretary shall allocate funds to the 
        Agriculture and Food Research Initiative to ensure that, of 
        funds allocated for research activities--
                    ``(A) not less than 60 percent is made available to 
                make grants for fundamental research (as defined in 
                subsection (f)(1) of section 251 of the Department of 
                Agriculture Reorganization Act of 1994 (7 U.S.C. 
                6971)), of which--
                            ``(i) not less than 30 percent is made 
                        available to make grants for research to be 
                        conducted by multidisciplinary teams; and
                            ``(ii) not more than 2 percent is used for 
                        equipment grants under paragraph (6)(A); and
                    ``(B) not less than 40 percent is made available to 
                make grants for applied research (as defined in 
                subsection (f)(1) of section 251 of the Department of 
                Agriculture Reorganization Act of 1994 (7 U.S.C. 
                6971)).
            ``(6) Special considerations.--In making grants under this 
        subsection, the Secretary may assist in the development of 
        capabilities in the agricultural, food, and environmental 
        sciences by providing grants--
                    ``(A) to an institution to allow for the 
                improvement of the research, development, technology 
                transfer, and education capacity of the institution 
                through the acquisition of special research equipment 
                and the improvement of agricultural education and 
                teaching, except that the Secretary shall use not less 
                than 25 percent of the funds made available for grants 
                under this subparagraph to provide fellowships to 
                outstanding pre- and post-doctoral students for 
                research in the agricultural sciences;
                    ``(B) to a single investigator or coinvestigators 
                who are beginning research careers and do not have an 
                extensive research publication record, except that, to 
                be eligible for a grant under this subparagraph, an 
                individual shall be within 5 years of the beginning of 
                the initial career track position of the individual;
                    ``(C) to ensure that the faculty of small, mid-
                sized, and minority-serving institutions who have not 
                previously been successful in obtaining competitive 
                grants under this subsection receive a portion of the 
                grants; and
                    ``(D) to improve research, extension, and education 
                capabilities in States (as defined in section 1404 of 
                the National Agricultural Research, Extension, and 
                Teaching Policy Act of 1977 (7 U.S.C. 3103)) in which 
                institutions have been less successful in receiving 
                funding under this subsection, based on a 3-year 
                rolling average of funding levels.
            ``(7) Eligible entities.--The Secretary may make grants to 
        carry out research, extension, and education under this 
        subsection to--
                    ``(A) State agricultural experiment stations;
                    ``(B) colleges and universities;
                    ``(C) university research foundations;
                    ``(D) other research institutions and 
                organizations;
                    ``(E) Federal agencies;
                    ``(F) national laboratories;
                    ``(G) private organizations or corporations;
                    ``(H) individuals; or
                    ``(I) any group consisting of 2 or more of the 
                entities described in subparagraphs (A) through (H).
            ``(8) Construction prohibited.--Funds made available for 
        grants under this subsection shall not be used for the 
        construction of a new building or facility or the acquisition, 
        expansion, remodeling, or alteration of an existing building or 
        facility (including site grading and improvement, and architect 
        fees).
            ``(9) Matching funds.--
                    ``(A) Equipment grants.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), in the case of a grant made under 
                        paragraph (6)(A), the amount provided under 
                        this subsection may not exceed 50 percent of 
                        the cost of the special research equipment or 
                        other equipment acquired using funds from the 
                        grant.
                            ``(ii) Waiver.--The Secretary may waive all 
                        or part of the matching requirement under 
                        clause (i) in the case of a college, 
                        university, or research foundation maintained 
                        by a college or university that ranks in the 
                        lowest \1/3\ of such colleges, universities, 
                        and research foundations on the basis of 
                        Federal research funds received, if the 
                        equipment to be acquired using funds from the 
                        grant costs not more than $25,000 and has 
                        multiple uses within a single research project 
                        or is usable in more than 1 research project.
                    ``(B) Applied research.--As a condition of making a 
                grant under paragraph (5)(B), the Secretary shall 
                require the funding of the grant to be matched with 
                equal matching funds from a non-Federal source if the 
                grant is for applied research that is--
                            ``(i) commodity-specific; and
                            ``(ii) not of national scope.
            ``(10) Program administration.--To the maximum extent 
        practicable, the Director of the National Institute of Food and 
        Agriculture, in coordination with the Under Secretary for 
        Research, Education, and Economics, shall allocate grants under 
        this subsection to high-priority research, taking into 
        consideration, when available, the determinations made by the 
        National Agricultural Research, Extension, Education, and 
        Economics Advisory Board (as established under section 1408 of 
        the National Agricultural Research, Extension, and Teaching 
        Policy Act of 1977 (7 U.S.C. 3123)).
            ``(11) Authorization of appropriations.--
                    ``(A) In general.--There is authorized to be 
                appropriated to carry out this subsection $700,000,000 
                for each of fiscal years 2008 through 2012, of which--
                            ``(i) not less than 30 percent shall be 
                        made available for integrated research pursuant 
                        to section 406 of the Agricultural Research, 
                        Extension, and Education Reform Act of 1998 (7 
                        U.S.C. 7626); and
                            ``(ii) not more than 4 percent may be 
                        retained by the Secretary to pay administrative 
                        costs incurred by the Secretary in carrying out 
                        this subsection.
                    ``(B) Availability.--Funds made available under 
                this paragraph shall--
                            ``(i) be available for obligation for a 2-
                        year period beginning on October 1 of the 
                        fiscal year for which the funds are first made 
                        available; and
                            ``(ii) remain available until expended to 
                        pay for obligations incurred during that 2-year 
                        period.''.
    (b) Repeals.--
            (1) Section 401 of the Agricultural Research, Extension, 
        and Education Reform Act of 1998 (7 U.S.C. 7621) is repealed.
            (2) Subsection (d) of the Competitive, Special, and 
        Facilities Research Grant Act (7 U.S.C. 450i(d)) is repealed.
    (c) Effect on Current Solicitations.--The amendments made by this 
section shall not apply to any solicitation for grant applications 
issued by the Cooperative State Research, Education, and Extension 
Service before the date of enactment of this Act.
    (d) Conforming Amendments.--
            (1) Section 1473 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319) is 
        amended in the first sentence by striking ``and subsection 
        (d)''.
            (2) Section 1671(d) of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 5924(d) is amended by striking 
        ``Paragraphs (1), (6), (7), and (11)'' and inserting 
        ``Paragraphs (4), (7), (8), and (11)(B)''.
            (3) Section 1672B(b) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5925b(b)) is 
        amended by striking ``Paragraphs (1), (6), (7), and (11)'' and 
        inserting ``Paragraphs (4), (7), (8), and (11)(B)''.

SEC. 7407. AGRICULTURAL RISK PROTECTION ACT OF 2000.

    Section 221 of the Agricultural Risk Protection Act of 2000 (7 
U.S.C. 6711(g)) is amended by striking subsection (g) and inserting the 
following:
    ``(g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $15,000,000 for each of fiscal 
years 2007 through 2012.''.

SEC. 7408. EXCHANGE OR SALE AUTHORITY.

    Title III of the Department of Agriculture Reorganization Act of 
1994 (Public Law 103-354; 108 Stat. 3238) is amended by adding at the 
end the following:

``SEC. 307. EXCHANGE OR SALE AUTHORITY.

    ``(a) Definition of Qualified Item of Personal Property.--In this 
section, the term `qualified item of personal property' means--
            ``(1) an animal;
            ``(2) an animal product;
            ``(3) a plant; or
            ``(4) a plant product.
    ``(b) General Authority.--Except as provided in subsection (c), 
notwithstanding chapter 5 of subtitle I of title 40, United States 
Code, the Secretary, acting through the Under Secretary for Research, 
Education, and Economics, in managing personal property for the purpose 
of carrying out the research functions of the Department, may exchange, 
sell, or otherwise dispose of any qualified item of personal property, 
including by way of public auction, and may retain and apply the sale 
or other proceeds, without further appropriation and without fiscal 
year limitation, in whole or in partial payment--
            ``(1) to acquire any qualified item of personal property; 
        or
            ``(2) to offset costs related to the maintenance, care, or 
        feeding of any qualified item of personal property.
    ``(c) Exception.--Subsection (b) does not apply to the free 
dissemination of new varieties of seeds and germplasm in accordance 
with section 520 of the Revised Statutes (commonly known as the 
`Department of Agriculture Organic Act') (7 U.S.C. 2201).''.

SEC. 7409. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.

    Title III of the Department of Agriculture Reorganization Act of 
1994 (Public Law 103-354; 108 Stat. 3238) (as amended by section 7408) 
is amended by adding at the end the following:

``SEC. 308. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.

    ``(a) Establishment.--To enhance the use of real property 
administered by agencies of the Department, the Secretary may establish 
a pilot program, in accordance with this section, at the Beltsville 
Agricultural Research Center of the Agricultural Research Service and 
the National Agricultural Library to lease nonexcess property of the 
Center or the Library to any individual or entity, including agencies 
or instrumentalities of State or local governments.
    ``(b) Requirements.--
            ``(1) In general.--Notwithstanding chapter 5 of subtitle I 
        of title 40, United States Code, the Secretary may lease real 
        property at the Beltsville Agricultural Research Center or the 
        National Agricultural Library in accordance with such terms and 
        conditions as the Secretary may prescribe, if the Secretary 
        determines that the lease--
                    ``(A) is consistent with, and will not adversely 
                affect, the mission of the Department agency 
                administering the property;
                    ``(B) will enhance the use of the property;
                    ``(C) will not permit any portion of Department 
                agency property or any facility of the Department to be 
                used for the public retail or wholesale sale of 
                merchandise or residential development;
                    ``(D) will not permit the construction or 
                modification of facilities financed by non-Federal 
                sources to be used by an agency, except for incidental 
                use; and
                    ``(E) will not include any property or facility 
                required for any Department agency purpose without 
                prior consideration of the needs of the agency.
            ``(2) Term.--The term of a lease under this section shall 
        not exceed 30 years.
            ``(3) Consideration.--
                    ``(A) In general.--Consideration provided for a 
                lease under this section shall be--
                            ``(i) in an amount equal to fair market 
                        value, as determined by the Secretary; and
                            ``(ii) in the form of cash.
                    ``(B) Use of funds.--
                            ``(i) In general.--Consideration provided 
                        for a lease under this section shall be--
                                    ``(I) deposited in a capital asset 
                                account to be established by the 
                                Secretary; and
                                    ``(II) available until expended, 
                                without further appropriation, for 
                                maintenance, capital revitalization, 
                                and improvements of the Department 
                                properties and facilities at the 
                                Beltsville Agricultural Research Center 
                                and National Agricultural Library.
                            ``(ii) Budgetary treatment.--For purposes 
                        of the budget, the amounts described in clause 
                        (i) shall not be treated as a receipt of any 
                        Department agency or any other agency leasing 
                        property under this section.
            ``(4) Costs.--The lessee shall cover all costs associated 
        with a lease under this section, including the cost of--
                    ``(A) the project to be carried out on property or 
                at a facility covered by the lease;
                    ``(B) provision and administration of the lease;
                    ``(C) construction of any needed facilities;
                    ``(D) provision of applicable utilities; and
                    ``(E) any other facility cost normally associated 
                with the operation of a leased facility.
            ``(5) Prohibition of use of appropriations.--The Secretary 
        shall not use any funds made available to the Secretary in an 
        appropriations Act for the construction or operating costs of 
        any space covered by a lease under this section.
            ``(6) Termination of authority.--This section and the 
        authority provided by this section terminate--
                    ``(A) on the date that is 5 years after the date of 
                enactment of this section; or
                    ``(B) with respect to any particular leased 
                property, on the date of termination of the lease.
    ``(c) Effect of Other Laws.--
            ``(1) Utilization.--Property that is leased pursuant to 
        this section shall not be considered to be unutilized or 
        underutilized for purposes of section 501 of the Stewart B. 
        McKinney Homeless Assistance Act (42 U.S.C. 11411).
            ``(2) Disposal.--Property at the Beltsville Agricultural 
        Research Center or the National Agricultural Library that is 
        leased pursuant to this section shall not be considered to be 
        disposed of by sale, lease, rental, excessing, or surplusing 
        for purposes of section 523 of Public Law 100-202 (101 Stat. 
        1329-417).
    ``(d) Administration.--
            ``(1) In general.--Not later than 90 days after the date of 
        enactment of this section, the Secretary shall submit to the 
        Committee on Agriculture of the House of Representatives and 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate a report that describes detailed management objectives 
        and performance measurements by which the Secretary intends to 
        evaluate the success of the program under this section.
            ``(2) Reports.--Not later than 1, 3, and 5 years after the 
        date of enactment of this section, the Secretary shall submit 
        to the Committee on Agriculture of the House of Representatives 
        and the Committee on Agriculture, Nutrition, and Forestry of 
        the Senate a report describing the implementation of the 
        program under this section, including--
                    ``(A) a copy of each lease entered into pursuant to 
                this section; and
                    ``(B) an assessment by the Secretary of the success 
                of the program using the management objectives and 
                performance measurements developed by the Secretary.''.

SEC. 7410. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.

    (a) Grants.--Section 7405(c) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 3319f(c)) is amended--
            (1) by striking paragraph (3) and inserting the following:
            ``(3) Maximum term and size of grant.--
                    ``(A) In general.--A grant under this subsection 
                shall--
                            ``(i) have a term that is not more than 3 
                        years; and
                            ``(ii) be in an amount that is not more 
                        than $250,000 for each year.
                    ``(B) Consecutive grants.--An eligible recipient 
                may receive consecutive grants under this 
                subsection.'';
            (2) by redesignating paragraphs (5) through (7) as 
        paragraphs (8) through (10), respectively;
            (3) by inserting after paragraph (4) the following:
            ``(5) Evaluation criteria.--In making grants under this 
        subsection, the Secretary shall evaluate--
                    ``(A) relevancy;
                    ``(B) technical merit;
                    ``(C) achievability;
                    ``(D) the expertise and track record of 1 or more 
                applicants;
                    ``(E) the adequacy of plans for the participatory 
                evaluation process, outcome-based reporting, and the 
                communication of findings and results beyond the 
                immediate target audience; and
                    ``(F) other appropriate factors, as determined by 
                the Secretary.
            ``(6) Regional balance.--In making grants under this 
        subsection, the Secretary shall, to the maximum extent 
        practicable, ensure geographical diversity.
            ``(7) Priority.--In making grants under this subsection, 
        the Secretary shall give priority to partnerships and 
        collaborations that are led by or include nongovernmental and 
        community-based organizations with expertise in new 
        agricultural producer training and outreach.''.
    (b) Funding.--Section 7405 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 3319f) is amended by striking 
subsection (h) and inserting the following:
    ``(h) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall make available to carry out 
        this section--
                    ``(A) $18,000,000 for fiscal year 2009; and
                    ``(B) $19,000,000 for each of fiscal years 2010 
                through 2012.
            ``(2) Authorization of appropriations.--In addition to 
        funds provided under paragraph (1), there is authorized to be 
        appropriated to carry out this section $30,000,000 for each of 
        fiscal years 2008 through 2012.''.

SEC. 7411. PUBLIC EDUCATION REGARDING USE OF BIOTECHNOLOGY IN PRODUCING 
              FOOD FOR HUMAN CONSUMPTION.

    Section 10802 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 5921a) is repealed.

SEC. 7412. MCINTIRE-STENNIS COOPERATIVE FORESTRY ACT.

    (a) In General.--Section 2 of Public Law 87-788 (commonly known as 
the ``McIntire-Stennis Cooperative Forestry Act'') (16 U.S.C. 582a-1) 
is amended by inserting ``and 1890 Institutions (as defined in section 
2 of the Agricultural Research, Extension, and Education Reform Act of 
1998 (7 U.S.C. 7601)),'' before ``and (b)''.
    (b) Effective Date.--The amendment made by subsection (a) takes 
effect on October 1, 2008.

SEC. 7413. RENEWABLE RESOURCES EXTENSION ACT OF 1978.

    (a) Authorization of Appropriations.--Section 6 of the Renewable 
Resources Extension Act of 1978 (16 U.S.C. 1675) is amended in the 
first sentence by striking ``2007'' and inserting ``2012''.
    (b) Termination Date.--Section 8 of the Renewable Resources 
Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95-306) is 
amended by striking ``2007'' and inserting ``2012''.

SEC. 7414. NATIONAL AQUACULTURE ACT OF 1980.

    Section 10 of the National Aquaculture Act of 1980 (16 U.S.C. 2809) 
is amended by striking ``2007'' each place it appears and inserting 
``2012''.

SEC. 7415. CONSTRUCTION OF CHINESE GARDEN AT THE NATIONAL ARBORETUM.

    The Act of March 4, 1927 (20 U.S.C. 191 et seq.), is amended by 
adding at the end the following:

``SEC. 7. CONSTRUCTION OF CHINESE GARDEN AT THE NATIONAL ARBORETUM.

    ``A Chinese Garden may be constructed at the National Arboretum 
established under this Act with--
            ``(1) funds accepted under section 5;
            ``(2) authorities provided to the Secretary of Agriculture 
        under section 6; and
            ``(3) appropriations provided for this purpose.''.

SEC. 7416. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING 
              POLICY ACT AMENDMENTS OF 1985.

    Section 1431 of the National Agricultural Research, Extension, and 
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 
1556) is amended by striking ``2007'' and inserting ``2012''.

SEC. 7417. ELIGIBILITY OF UNIVERSITY OF THE DISTRICT OF COLUMBIA FOR 
              CERTAIN LAND-GRANT UNIVERSITY ASSISTANCE.

    (a) In General.--Section 208 of the District of Columbia Public 
Postsecondary Education Reorganization Act (Public Law 93-471; 88 Stat. 
1428) is amended--
            (1) in subsection (b)(2), by striking ``, except'' and all 
        that follows through the period and inserting a period; and
            (2) in subsection (c)--
                    (A) by striking ``section 3'' each place it appears 
                and inserting ``section 3(c)''; and
                    (B) by striking ``Such sums may be used to pay'' 
                and all that follows through ``work.''.
    (b) Effective Date.--The amendments made by this section take 
effect on October 1, 2008.

                       Subtitle E--Miscellaneous

                       PART I--GENERAL PROVISIONS

SEC. 7501. DEFINITIONS.

    Except as otherwise provided in this subtitle, in this subtitle:
            (1) Capacity and infrastructure program.--The term 
        ``capacity and infrastructure program'' has the meaning given 
        the term in subsection (f)(1) of section 251 of the Department 
        of Agriculture Reorganization Act of 1994 (7 U.S.C. 6971) (as 
        added by section 7511(a)(4)).
            (2) Capacity and infrastructure program critical base 
        funding.--The term ``capacity and infrastructure program 
        critical base funding'' means the aggregate amount of Federal 
        funds made available for capacity and infrastructure programs 
        for fiscal year 2006, as appropriate.
            (3) Competitive program.--The term ``competitive program'' 
        has the meaning given the term in subsection (f)(1) of section 
        251 of the Department of Agriculture Reorganization Act of 1994 
        (7 U.S.C. 6971) (as added by section 7511(a)(4)).
            (4) Competitive program critical base funding.--The term 
        ``competitive program critical base funding'' means the 
        aggregate amount of Federal funds made available for 
        competitive programs for fiscal year 2006, as appropriate.
            (5) Hispanic-serving agricultural colleges and 
        universities.--The term ``Hispanic-serving agricultural 
        colleges and universities'' has the meaning given the term in 
        section 1404 of the National Agricultural Research, Extension, 
        and Teaching Policy Act of 1977 (7 U.S.C. 3103).
            (6) NLGCA institution.--The term ``NLGCA Institution'' has 
        the meaning given the term in section 1404 of the National 
        Agricultural Research, Extension, and Teaching Policy Act of 
        1977 (7 U.S.C. 3103).
            (7) 1862 institution; 1890 institution; 1994 institution.--
        The terms ``1862 Institution'', ``1890 Institution'', and 
        ``1994 Institution'' have the meanings given the terms in 
        section 2 of the Agricultural Research, Extension, and 
        Education Reform Act of 1998 (7 U.S.C. 7601).

SEC. 7502. GRAZINGLANDS RESEARCH LABORATORY.

    Except as otherwise specifically authorized by law and 
notwithstanding any other provision of law, the Federal land and 
facilities at El Reno, Oklahoma, administered by the Secretary (as of 
the date of enactment of this Act) as the Grazinglands Research 
Laboratory, shall not at any time, in whole or in part, be declared to 
be excess or surplus Federal property under chapter 5 of subtitle I of 
title 40, United States Code, or otherwise be conveyed or transferred 
in whole or in part, for the 5-year period beginning on the date of 
enactment of this Act.

SEC. 7503. FORT RENO SCIENCE PARK RESEARCH FACILITY.

    The Secretary may lease land to the University of Oklahoma at the 
Grazinglands Research Laboratory at El Reno, Oklahoma, on such terms 
and conditions as the University and the Secretary may agree in 
furtherance of cooperative research and existing easement arrangements.

SEC. 7504. ROADMAP.

    (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Secretary, acting through the Under Secretary of 
Research, Education, and Economics (referred to in this section as the 
``Under Secretary''), shall commence preparation of a roadmap for 
agricultural research, education, and extension that--
            (1) identifies current trends and constraints;
            (2) identifies major opportunities and gaps that no single 
        entity within the Department of Agriculture would be able to 
        address individually;
            (3) involves--
                    (A) interested parties from the Federal Government 
                and nongovernmental entities; and
                    (B) the National Agricultural Research, Extension, 
                Education, and Economics Advisory Board established 
                under section 1408 of the National Agricultural 
                Research, Extension, and Teaching Policy Act of 1977 (7 
                U.S.C. 3123);
            (4) incorporates roadmaps for agricultural research, 
        education, and extension made publicly available by other 
        Federal entities, agencies, or offices; and
            (5) describes recommended funding levels for areas of 
        agricultural research, education, and extension, including--
                    (A) competitive programs;
                    (B) capacity and infrastructure programs, with 
                attention to the future growth needs of--
                            (i) small 1862 Institutions, 1890 
                        Institutions, and 1994 Institutions;
                            (ii) Hispanic-serving agricultural colleges 
                        and universities;
                            (iii) NLGCA Institutions; and
                            (iv) colleges of veterinary medicine; and
                    (C) intramural programs at agencies within the 
                research, education, and economics mission area; and
            (6) describes how organizational changes enacted by this 
        Act have impacted agricultural research, extension, and 
        education across the Department of Agriculture, including 
        minimization of unnecessary programmatic and administrative 
        duplication.
    (b) Reviewability.--The roadmap described in this section shall not 
be subject to review by any officer or employee of the Federal 
Government other than the Secretary (or a designee of the Secretary).
    (c) Roadmap Implementation and Report.--Not later than 1 year after 
the date on which the Secretary commences preparation of the roadmap 
under this section, the Secretary shall--
            (1) implement and use the roadmap to set the research, 
        education, and extension agenda of the Department of 
        Agriculture; and
            (2) make the roadmap available to the public.

SEC. 7505. REVIEW OF PLAN OF WORK REQUIREMENTS.

    (a) Review.--The Secretary shall work with university partners in 
extension and research to review and identify measures to streamline 
the submission, reporting under, and implementation of plan of work 
requirements, including those requirements under--
            (1) sections 1444(d) and 1445(c) of the National 
        Agricultural Research, Extension, and Teaching Policy Act of 
        1977 (7 U.S.C. 3221(d) and 3222(c), respectively);
            (2) section 7 of the Hatch Act of 1887 (7 U.S.C. 361g); and
            (3) section 4 of the Smith-Lever Act (7 U.S.C. 344).
    (b) Consultation.--In carrying out the review and formulating and 
compiling the recommendations, the Secretary shall consult with the 
land-grant institutions.

SEC. 7506. BUDGET SUBMISSION AND FUNDING.

    (a) Definition of Competitive Programs.--In this section, the term 
``competitive programs'' includes only competitive programs for which 
annual appropriations are requested in the annual budget submission of 
the President.
    (b) Budget Request.--The President shall submit to Congress, 
together with the annual budget submission of the President, a single 
budget line item reflecting the total amount requested by the President 
for funding for research, education, and extension activities of the 
Research, Education, and Economics mission area of the Department for 
that fiscal year and for the preceding 5 fiscal years.
    (c) Capacity and Infrastructure Program Request.--Of the funds 
requested for capacity and infrastructure programs in excess of the 
capacity and infrastructure program critical base funding level, 
budgetary emphasis should be placed on enhancing funding for--
            (1) 1890 Institutions;
            (2) 1994 Institutions;
            (3) NLGCA Institutions;
            (4) Hispanic-serving agricultural colleges and 
        universities; and
            (5) small 1862 Institutions.
    (d) Competitive Program Request.--Of the funds requested for 
competitive programs in excess of the competitive program critical base 
funding level, budgetary emphasis should be placed on--
            (1) enhancing funding for emerging problems; and
            (2) finding solutions for those problems.

              PART II--RESEARCH, EDUCATION, AND ECONOMICS

SEC. 7511. RESEARCH, EDUCATION, AND ECONOMICS.

    (a) In General.--Section 251 of the Department of Agriculture 
Reorganization Act of 1994 (7 U.S.C. 6971) is amended--
            (1) in subsection (a), by inserting ``(referred to in this 
        section as the `Under Secretary')'' before the period at the 
        end;
            (2) by striking subsections (b) through (d);
            (3) by redesignating subsection (e) as subsection (g); and
            (4) by inserting after subsection (a) the following:
    ``(b) Confirmation Required.--The Under Secretary shall be 
appointed by the President, by and with the advice and consent of the 
Senate, from among distinguished scientists with specialized training 
or significant experience in agricultural research, education, and 
economics.
    ``(c) Chief Scientist.--The Under Secretary shall--
            ``(1) hold the title of Chief Scientist of the Department; 
        and
            ``(2) be responsible for the coordination of the research, 
        education, and extension activities of the Department.
    ``(d) Functions of Under Secretary.--
            ``(1) Principal function.--The Secretary shall delegate to 
        the Under Secretary those functions and duties under the 
        jurisdiction of the Department that relate to research, 
        education, and economics.
            ``(2) Specific functions and duties.--The Under Secretary 
        shall--
                    ``(A) identify, address, and prioritize current and 
                emerging agricultural research, education, and 
                extension needs (including funding);
                    ``(B) ensure that agricultural research, education, 
                and extension programs are effectively coordinated and 
                integrated--
                            ``(i) across disciplines, agencies, and 
                        institutions; and
                            ``(ii) among applicable participants, 
                        grantees, and beneficiaries;
                    ``(C) promote the collaborative use of all 
                agricultural research, education, and extension 
                resources from the local, State, tribal, regional, 
                national, and international levels to address priority 
                needs; and
                    ``(D) foster communication among agricultural 
                research, education, and extension beneficiaries, 
                including the public, to ensure the delivery of 
                agricultural research, education, and extension 
                knowledge.
            ``(3) Additional functions.--The Under Secretary shall 
        perform such other functions and duties as may be required by 
        law or prescribed by the Secretary.
    ``(e) Research, Education, and Extension Office.--
            ``(1) Establishment.--The Under Secretary shall organize 
        within the office of the Under Secretary 6 Divisions, to be 
        known collectively as the `Research, Education, and Extension 
        Office', which shall coordinate the research programs and 
        activities of the Department.
            ``(2) Division designations.--The Divisions within the 
        Research, Education, and Extension Office shall be as follows:
                    ``(A) Renewable energy, natural resources, and 
                environment.
                    ``(B) Food safety, nutrition, and health.
                    ``(C) Plant health and production and plant 
                products.
                    ``(D) Animal health and production and animal 
                products.
                    ``(E) Agricultural systems and technology.
                    ``(F) Agricultural economics and rural communities.
            ``(3) Division chiefs.--
                    ``(A) Selection.--The Under Secretary shall select 
                a Division Chief for each Division using available 
                personnel authority under title 5, United States Code, 
                including--
                            ``(i) by term, temporary, or other 
                        appointment, without regard to--
                                    ``(I) the provisions of title 5, 
                                United States Code, governing 
                                appointments in the competitive 
                                service;
                                    ``(II) the provisions of subchapter 
                                I of chapter 35 of title 5, United 
                                States Code, relating to retention 
                                preference; and
                                    ``(III) the provisions of chapter 
                                51 and subchapter III of chapter 53 of 
                                title 5, United States Code, relating 
                                to classification and General Schedule 
                                pay rates;
                            ``(ii) by detail, notwithstanding any Act 
                        making appropriations for the Department of 
                        Agriculture, whether enacted before, on, or 
                        after the date of enactment of this paragraph, 
                        requiring reimbursement for those details 
                        unless the appropriation Act specifically 
                        refers to this subsection and specifically 
                        includes these details;
                            ``(iii) by reassignment or transfer from 
                        any other civil service position; and
                            ``(iv) by an assignment under subchapter VI 
                        of chapter 33 of title 5, United States Code.
                    ``(B) Selection guidelines.--To the maximum extent 
                practicable, the Under Secretary shall select Division 
                Chiefs under subparagraph (A) in a manner that--
                            ``(i) promotes leadership and professional 
                        development;
                            ``(ii) enables personnel to interact with 
                        other agencies of the Department; and
                            ``(iii) maximizes the ability of the Under 
                        Secretary to allow for rotations of Department 
                        personnel into the position of Division Chief.
                    ``(C) Term of service.--Notwithstanding title 5, 
                United States Code, the maximum length of service for 
                an individual selected as a Division Chief under 
                subparagraph (A) shall not exceed 4 years.
                    ``(D) Qualifications.--To be eligible for selection 
                as a Division Chief, an individual shall have--
                            ``(i) conducted exemplary research, 
                        education, or extension in the field of 
                        agriculture or forestry; and
                            ``(ii) earned an advanced degree at an 
                        institution of higher education (as defined in 
                        section 101 of the Higher Education Act of 1965 
                        (20 U.S.C. 1001)).
                    ``(E) Duties of division chiefs.--Except as 
                otherwise provided in this Act, each Division Chief 
                shall--
                            ``(i) assist the Under Secretary in 
                        identifying and addressing emerging 
                        agricultural research, education, and extension 
                        needs;
                            ``(ii) assist the Under Secretary in 
                        identifying and prioritizing Department-wide 
                        agricultural research, education, and extension 
                        needs, including funding;
                            ``(iii) assess the strategic workforce 
                        needs of the research, education, and extension 
                        functions of the Department, and develop 
                        strategic workforce plans to ensure that 
                        existing and future workforce needs are met;
                            ``(iv) communicate with research, 
                        education, and extension beneficiaries, 
                        including the public, and representatives of 
                        the research, education, and extension system, 
                        including the National Agricultural Research, 
                        Extension, Education, and Economics Advisory 
                        Board, to promote the benefits of agricultural 
                        research, education, and extension;
                            ``(v) assist the Under Secretary in 
                        preparing and implementing the roadmap for 
                        agricultural research, education, and 
                        extension, as described in section 7504 of the 
                        Food, Conservation, and Energy Act of 2008; and
                            ``(vi) perform such other duties as the 
                        Under Secretary may determine.
            ``(4) General administration.--
                    ``(A) Funding.--Notwithstanding any Act making 
                appropriations for the Department of Agriculture, 
                whether enacted before, on, or after the date of 
                enactment of this paragraph unless the appropriation 
                Act specifically refers to this subsection and 
                specifically includes the administration of funds under 
                this section, the Secretary may transfer funds made 
                available to an agency in the research, education, and 
                economics mission area to fund the costs of Division 
                personnel.
                    ``(B) Limitation.--To the maximum extent 
                practicable--
                            ``(i) the Under Secretary shall minimize 
                        the number of full-time equivalent positions in 
                        the Divisions; and
                            ``(ii) at no time shall the aggregate 
                        number of staff for all Divisions exceed 30 
                        full-time equivalent positions.
                    ``(C) Rotation of personnel.--To the maximum extent 
                practicable, and using the authority described in 
                paragraph (3)(A), the Under Secretary shall rotate 
                personnel among the Divisions, and between the 
                Divisions and agencies of the Department, in a manner 
                that--
                            ``(i) promotes leadership and professional 
                        development; and
                            ``(ii) enables personnel to interact with 
                        other agencies of the Department.
            ``(5) Organization.--The Under Secretary shall integrate 
        leadership functions of the national program staff of the 
        research agencies into the Research, Education and Extension 
        Office in such form as is required to ensure that 
        administrative duplication does not occur.
    ``(f) National Institute of Food and Agriculture.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Advisory board.--The term `Advisory Board' 
                means the National Agricultural Research, Extension, 
                Education, and Economics Advisory Board established 
                under section 1408 of the National Agricultural 
                Research, Extension, and Teaching Policy Act of 1977 (7 
                U.S.C. 3123).
                    ``(B) Applied research.--The term `applied 
                research' means research that includes expansion of the 
                findings of fundamental research to uncover practical 
                ways in which new knowledge can be advanced to benefit 
                individuals and society.
                    ``(C) Capacity and infrastructure program.--The 
                term `capacity and infrastructure program' means each 
                of the following agricultural research, extension, 
                education, and related programs for which the Secretary 
                has administrative or other authority as of the day 
                before the date of enactment of the Food, Conservation, 
                and Energy Act of 2008:
                            ``(i) Each program providing funding to any 
                        of the 1994 Institutions under sections 533, 
                        534(a), and 535 of the Equity in Educational 
                        Land-Grant Status Act of 1994 (7 U.S.C. 301 
                        note; Public Law 103-382).
                            ``(ii) The program established under 
                        section 536 of the Equity in Educational Land-
                        Grant Status Act of 1994 (7 U.S.C. 301 note; 
                        Public Law 103-382) providing research grants 
                        for 1994 Institutions.
                            ``(iii) Each program established under 
                        subsections (b) and (c) of section 3 of the 
                        Smith-Lever Act (7 U.S.C. 343).
                            ``(iv) Each program established under the 
                        Hatch Act of 1887 (7 U.S.C. 361a et seq.).
                            ``(v) Each program established under 
                        section 1417(b) of the National Agricultural 
                        Research, Extension, and Teaching Policy Act of 
                        1977 (7 U.S.C. 3152(b)).
                            ``(vi) The animal health and disease 
                        research program established under subtitle E 
                        of the National Agricultural Research, 
                        Extension, and Teaching Policy Act of 1977 (7 
                        U.S.C. 3191 et seq.).
                            ``(vii) Each extension program available to 
                        1890 Institutions established under section 
                        1444 of the National Agricultural Research, 
                        Extension, and Teaching Policy Act of 1977 (7 
                        U.S.C. 3221).
                            ``(viii) The program established under 
                        section 1445 of the National Agricultural 
                        Research, Extension, and Teaching Policy Act of 
                        1977 (7 U.S.C. 3222).
                            ``(ix) The program providing grants to 
                        upgrade agricultural and food sciences 
                        facilities at 1890 Institutions established 
                        under section 1447 of the National Agricultural 
                        Research, Extension, and Teaching Policy Act of 
                        1977 (7 U.S.C. 3222b).
                            ``(x) The program providing distance 
                        education grants for insular areas established 
                        under section 1490 of the National Agricultural 
                        Research, Extension, and Teaching Policy Act of 
                        1977 (7 U.S.C. 3362).
                            ``(xi) The program providing resident 
                        instruction grants for insular areas 
                        established under section 1491 of the National 
                        Agricultural Research, Extension, and Teaching 
                        Policy Act of 1977 (7 U.S.C. 3363).
                            ``(xii) Each research and development and 
                        related program established under Public Law 
                        87-788 (commonly known as the `McIntire-Stennis 
                        Cooperative Forestry Act') (16 U.S.C. 582a et 
                        seq.).
                            ``(xiii) Each program established under the 
                        Renewable Resources Extension Act of 1978 (16 
                        U.S.C. 1671 et seq.).
                            ``(xiv) Each program providing funding to 
                        Hispanic-serving agricultural colleges and 
                        universities under section 1456 of the National 
                        Agricultural Research, Extension, and Teaching 
                        Policy Act of 1977.
                            ``(xv) The program providing capacity 
                        grants to NLGCA Institutions under section 
                        1473F of the National Agricultural Research, 
                        Extension, and Teaching Policy Act of 1977.
                            ``(xvi) Other programs that are capacity 
                        and infrastructure programs, as determined by 
                        the Secretary.
                    ``(D) Competitive program.--The term `competitive 
                program' means each of the following agricultural 
                research, extension, education, and related programs 
                for which the Secretary has administrative or other 
                authority as of the day before the date of enactment of 
                the Food, Conservation, and Energy Act of 2008:
                            ``(i) The Agriculture and Food Research 
                        Initiative established under section 2(b) of 
                        the Competitive, Special, and Facilities 
                        Research Grant Act (7 U.S.C. 450i(b)).
                            ``(ii) The program providing competitive 
                        grants for risk management education 
                        established under section 524(a)(3) of the 
                        Federal Crop Insurance Act (7 U.S.C. 
                        1524(a)(3)).
                            ``(iii) The program providing community 
                        food project competitive grants established 
                        under section 25 of the Food and Nutrition Act 
                        of 2008 (7 U.S.C. 2034).
                            ``(iv) The program providing grants for 
                        beginning farmer and rancher development 
                        established under section 7405 of the Farm 
                        Security and Rural Investment Act of 2002 (7 
                        U.S.C. 3319f).
                            ``(v) The program providing grants under 
                        section 1417(j) of the National Agricultural 
                        Research, Extension, and Teaching Policy Act of 
                        1977 (7 U.S.C. 3152(j)).
                            ``(vi) The program providing grants for 
                        Hispanic-serving institutions established under 
                        section 1455 of the National Agricultural 
                        Research, Extension, and Teaching Policy Act of 
                        1977 (7 U.S.C. 3241).
                            ``(vii) The program providing competitive 
                        grants for international agricultural science 
                        and education programs under section 1459A of 
                        the National Agricultural Research, Extension, 
                        and Teaching Policy Act of 1977 (7 U.S.C. 
                        3292b).
                            ``(viii) The research and extension 
                        projects carried out under section 1621 of the 
                        Food, Agriculture, Conservation, and Trade Act 
                        of 1990 (7 U.S.C. 5811).
                            ``(ix) The organic agriculture research and 
                        extension initiative established under section 
                        1672B of the Food, Agriculture, Conservation, 
                        and Trade Act of 1990 (7 U.S.C. 5925b).
                            ``(x) The specialty crop research 
                        initiative under section 412 of the 
                        Agricultural Research, Extension, and Education 
                        Reform Act of 1998.
                            ``(xi) The administration and management of 
                        the Agricultural Bioenergy Feedstock and Energy 
                        Efficiency Research and Extension Initiative 
                        carried out under section 1672C of the Food, 
                        Agriculture, Conservation, and Trade Act of 
                        1990.
                            ``(xii) The research, extension, and 
                        education programs authorized by section 407 of 
                        the Agricultural Research, Extension, and 
                        Education Reform Act of 1998 (7 U.S.C. 7627) 
                        relating to the competitiveness, viability and 
                        sustainability of small- and medium-sized 
                        dairy, livestock, and poultry operations.
                            ``(xiii) Other programs that are 
                        competitive programs, as determined by the 
                        Secretary.
                    ``(E) Director.--The term `Director' means the 
                Director of the Institute.
                    ``(F) Fundamental research.--The term `fundamental 
                research' means research that--
                            ``(i) increases knowledge or understanding 
                        of the fundamental aspects of phenomena and has 
                        the potential for broad application; and
                            ``(ii) has an effect on agriculture, food, 
                        nutrition, or the environment.
                    ``(G) Institute.--The term `Institute' means the 
                National Institute of Food and Agriculture established 
                by paragraph (2)(A).
            ``(2) Establishment of national institute of food and 
        agriculture.--
                    ``(A) Establishment.--The Secretary shall establish 
                within the Department an agency to be known as the 
                `National Institute of Food and Agriculture'.
                    ``(B) Transfer of authorities.--The Secretary shall 
                transfer to the Institute, effective not later than 
                October 1, 2009, the authorities (including all budget 
                authorities, available appropriations, and personnel), 
                duties, obligations, and related legal and 
                administrative functions prescribed by law or otherwise 
                granted to the Secretary, the Department, or any other 
                agency or official of the Department under--
                            ``(i) the capacity and infrastructure 
                        programs;
                            ``(ii) the competitive programs;
                            ``(iii) the research, education, economic, 
                        cooperative State research programs, 
                        cooperative extension and education programs, 
                        international programs, and other functions and 
                        authorities delegated by the Under Secretary to 
                        the Administrator of the Cooperative State 
                        Research, Education, and Extension Service 
                        pursuant to section 2.66 of title 7, Code of 
                        Federal Regulations (or successor regulations); 
                        and
                            ``(iv) any and all other authorities 
                        administered by the Administrator of the 
                        Cooperative State Research, Education, and 
                        Extension Service.
            ``(3) Director.--
                    ``(A) In general.--The Institute shall be headed by 
                a Director, who shall be an individual who is--
                            ``(i) a distinguished scientist; and
                            ``(ii) appointed by the President.
                    ``(B) Supervision.--The Director shall report 
                directly to the Secretary, or the designee of the 
                Secretary.
                    ``(C) Functions of the director.--The Director 
                shall--
                            ``(i) serve for a 6-year term, subject to 
                        reappointment for an additional 6-year term;
                            ``(ii) periodically report to the 
                        Secretary, or the designee of the Secretary, 
                        with respect to activities carried out by the 
                        Institute; and
                            ``(iii) consult regularly with the 
                        Secretary, or the designee of the Secretary, to 
                        ensure, to the maximum extent practicable, 
                        that--
                                    ``(I) research of the Institute is 
                                relevant to agriculture in the United 
                                States and otherwise serves the 
                                national interest; and
                                    ``(II) the research of the 
                                Institute supplements and enhances, and 
                                does not supplant, research conducted 
                                or funded by other Federal agencies.
                    ``(D) Compensation.--The Director shall receive 
                basic pay at a rate not to exceed the maximum amount of 
                compensation payable to a member of the Senior 
                Executive Service under subsection (b) of section 5382 
                of title 5, United States Code, except that the 
                certification requirement in that subsection shall not 
                apply to the compensation of the Director.
                    ``(E) Authority and responsibilities of director.--
                Except as otherwise specifically provided in this 
                subsection, the Director shall--
                            ``(i) exercise all of the authority 
                        provided to the Institute by this subsection;
                            ``(ii) formulate and administer programs in 
                        accordance with policies adopted by the 
                        Institute, in coordination with the Under 
                        Secretary;
                            ``(iii) establish offices within the 
                        Institute;
                            ``(iv) establish procedures for the 
                        provision and administration of grants by the 
                        Institute; and
                            ``(v) consult regularly with the Advisory 
                        Board.
            ``(4) Regulations.--The Institute shall have such authority 
        as is necessary to carry out this subsection, including the 
        authority to promulgate such regulations as the Institute 
        considers to be necessary for governance of operations, 
        organization, and personnel.
            ``(5) Administration.--
                    ``(A) In general.--The Director shall organize 
                offices and functions within the Institute to 
                administer fundamental and applied research and 
                extension and education programs.
                    ``(B) Research priorities.--The Director shall 
                ensure the research priorities established by the Under 
                Secretary through the Research, Education and Extension 
                Office are carried out by the offices and functions of 
                the Institute, where applicable.
                    ``(C) Fundamental and applied research.--The 
                Director shall--
                            ``(i) determine an appropriate balance 
                        between fundamental and applied research 
                        programs and functions to ensure future 
                        research needs are met; and
                            ``(ii) designate staff, as appropriate, to 
                        assist in carrying out this subparagraph.
                    ``(D) Competitively funded awards.--The Director 
                shall--
                            ``(i) promote the use and growth of grants 
                        awarded through a competitive process; and
                            ``(ii) designate staff, as appropriate, to 
                        assist in carrying out this subparagraph.
                    ``(E) Coordination.--The Director shall ensure that 
                the offices and functions established under 
                subparagraph (A) are effectively coordinated for 
                maximum efficiency.
            ``(6) Funding.--
                    ``(A) In general.--In addition to funds otherwise 
                appropriated to carry out each program administered by 
                the Institute, there are authorized to be appropriated 
                such sums as are necessary to carry out this subsection 
                for each fiscal year.
                    ``(B) Allocation.--Funding made available under 
                subparagraph (A) shall be allocated according to 
                recommendations contained in the roadmap described in 
                section 7504 of the Food, Conservation, and Energy Act 
                of 2008.''.
    (b) Functions.--Section 296(b) of the Department of Agriculture 
Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
            (1) in paragraph (4), by striking ``or'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(6) the authority of the Secretary to establish in the 
        Department, under section 251--
                    ``(A) the position of Under Secretary of 
                Agriculture for Research, Education, and Economics;
                    ``(B) the Research, Education, and Extension 
                Office; and
                    ``(C) the National Institute of Food and 
                Agriculture.''.
    (c) Conforming Amendments.--The following conforming amendments 
shall take effect on October 1, 2009:
            (1) Section 522(d)(2) of the Federal Crop Insurance Act (7 
        U.S.C. 1522(d)(2)) is amended by striking ``the Cooperative 
        State Research, Education, and Extension Service'' and 
        inserting ``the National Institute of Food and Agriculture''.
            (2) Section 524(a) of the Federal Crop Insurance Act (7 
        U.S.C. 1524(a)) is amended in each of paragraphs (1)(B) and 
        (3)(A) by striking ``the Cooperative State Research, Education, 
        and Extension Service'' each place it appears and inserting 
        ``the National Institute of Food and Agriculture''.
            (3) Section 306(a)(11)(C) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1926(a)(11)(C)) is amended by 
        striking ``the Cooperative State Research, Education, and 
        Extension Service'' and inserting ``the National Institute of 
        Food and Agriculture''.
            (4) Section 5(b)(2)(E) of the Agricultural Credit 
        Improvement Act of 1992 (7 U.S.C. 1929 note; Public Law 102-
        554) is amended by striking ``Cooperative Extension Service'' 
        and inserting ``National Institute of Food and Agriculture''.
            (5) Section 11(f)(1) of the Food and Nutrition Act of 2008 
        (7 U.S.C. 2020(f)(1)) is amended by striking ``Cooperative 
        Extension Service'' and inserting ``National Institute of Food 
        and Agriculture''.
            (6) Section 502(h) of the Rural Development Act of 1972 (7 
        U.S.C. 2662(h)) is amended--
                    (A) in paragraph (1), by striking ``Extension 
                Service'' and inserting ``National Institute of Food 
                and Agriculture''; and
                    (B) in paragraph (4), by striking ``Extension 
                Service staff'' and inserting ``National Institute of 
                Food and Agriculture staff''.
            (7) Section 7404(b)(1)(B) of the Farm Security and Rural 
        Investment Act of 2002 (7 U.S.C. 3101 note; Public Law 107-171) 
        is amended by striking clause (vi) and inserting the following:
                            ``(vi) the National Institute of Food and 
                        Agriculture.''.
            (8) Section 1408(b)(4) of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
        3123(b)(4)) is amended by striking ``the Administrator of the 
        Cooperative State Research, Education, and Extension Service'' 
        and inserting ``the Director of the National Institute of Food 
        and Agriculture''.
            (9) Section 2381(a) of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 3125b(a)) is amended by 
        striking ``Extension Service'' and inserting ``National 
        Institute of Food and Agriculture''.
            (10) The National Agricultural Research, Extension, and 
        Teaching Policy Act of 1977 is amended--
                    (A) in section 1424A(b) (7 U.S.C. 3174a(b)), by 
                striking ``the Cooperative State Research, Education, 
                and Extension Service'' and inserting ``the National 
                Institute of Food and Agriculture''; and
                    (B) in section 1458(a)(10) (7 U.S.C. 3291(a)(10)), 
                by striking ``the Cooperative State Research, 
                Education, and Extension Service'' and inserting ``the 
                National Institute of Food and Agriculture''.
            (11) Section 1587(a) of the Food Security Act of 1985 (7 
        U.S.C. 3175d(a)) is amended by striking ``Extension Service'' 
        each place it appears and inserting ``National Institute of 
        Food and Agriculture''.
            (12) Section 1444(b)(2)(A) of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
        3221(b)(2)(A)) is amended by striking ``Extension Service'' and 
        inserting ``National Institute of Food and Agriculture''.
            (13) Section 1473D(d) of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
        3319d(d)) is amended by striking ``the Cooperative State 
        Research Service, the Extension Service'' and inserting ``the 
        National Institute of Food and Agriculture''.
            (14) Section 1499(c) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5506(c)) is 
        amended by striking ``the Cooperative State Research Service'' 
        and all that follows through ``extension services;'' and 
        inserting ``the National Institute of Food and Agriculture, in 
        conjunction with the system of State agricultural experiment 
        stations and State and county cooperative extension services; 
        the Economic Research Service;''.
            (15) Section 1622 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 5812) is amended--
                    (A) in subsection (a)(1), by striking ``the 
                Cooperative State Research Service in close cooperation 
                with the Extension Service'' and inserting ``the 
                National Institute of Food and Agriculture'';
                    (B) in subsection (b)(1)--
                            (i) by striking subparagraphs (B) and (C) 
                        and inserting the following:
                    ``(B) the National Institute of Food and 
                Agriculture;''; and
                            (ii) by redesignating subparagraphs (D) 
                        through (L) as subparagraphs (C) through (K), 
                        respectively.
            (16) Section 1627(d) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5821(d)) is 
        amended by striking ``Extension Service'' and inserting 
        ``National Institute of Food and Agriculture''.
            (17) Section 1629 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 5832) is amended--
                    (A) in subsection (b), in the first sentence, by 
                striking ``the Extension Service'' and inserting ``the 
                National Institute of Food and Agriculture''; and
                    (B) in subsection (h), by striking ``Extension 
                Service'' and inserting ``National Institute of Food 
                and Agriculture''.
            (18) Section 1638(b) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5852(b)) is 
        amended--
                    (A) in paragraph (3), by striking ``Cooperative 
                State Research Service'' and inserting ``National 
                Institute of Food and Agriculture''; and
                    (B) in paragraph (5), by striking ``Cooperative 
                State Research Service'' and inserting ``National 
                Institute of Food and Agriculture''.
            (19) Section 1640(a)(2) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5854(a)(2)) is 
        amended by striking ``the Administrator of the Extension 
        Service, the Administrator of the Cooperative State Research 
        Service'' and inserting ``the Director of the National 
        Institute of Food and Agriculture''.
            (20) Section 1641(a) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5855(a)) is 
        amended--
                    (A) in paragraph (2), by striking ``Cooperative 
                State Research Service'' and inserting ``National 
                Institute of Food and Agriculture''; and
                    (B) in paragraph (4,) by striking ``Extension 
                Service'' and inserting ``National Institute of Food 
                and Agriculture''.
            (21) Section 1668(b) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5921(b)) is 
        amended by striking ``Cooperative State Research, Education, 
        and Extension Service'' and inserting ``National Institute of 
        Food and Agriculture''.
            (22) Section 1670(a)(4) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5923(a)(4)) is 
        amended by striking ``the Administrator of the Cooperative 
        State Research, Education, and Extension Service'' and 
        inserting ``the Director of the National Institute of Food and 
        Agriculture''.
            (23) Section 1677(a) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5930(a)) is 
        amended by striking ``Extension Service'' and inserting 
        ``National Institute of Food and Agriculture''.
            (24) Section 2122(b)(1) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 6521(b)(1)) is 
        amended by striking ``Extension Service'' and inserting 
        ``National Institute of Food and Agriculture''.
            (25) Section 2371 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 6601) is amended--
                    (A) in subsection (a), by striking ``Extension 
                Service'' and inserting ``National Institute of Food 
                and Agriculture''; and
                    (B) in subsection (c)(3), by striking ``Service'' 
                and inserting ``System''.
            (26) Section 2377(a) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 6615(a)) is 
        amended by striking ``Extension Service'' and inserting 
        ``National Institute of Food and Agriculture''.
            (27) Section 212(a)(2)(A) of the Department of Agriculture 
        Reorganization Act of 1994 (7 U.S.C. 6912(a)(2)(A)) is amended 
        by striking ``251(d),'' and inserting ``251(f),''.
            (28) Section 537 of the Federal Agriculture Improvement and 
        Reform Act of 1996 (7 U.S.C. 7446) is amended in each of 
        subsections (a)(2) and (b)(3)(B)(i) by striking ``Cooperative 
        State Research, Education, and Extension Service'' and 
        inserting ``cooperative extension''.
            (29) Section 101(b)(2) of the Agricultural Research, 
        Extension, and Education Reform Act of 1998 (7 U.S.C. 
        7611(b)(2)) is amended by striking ``Cooperative State 
        Research, Education, and Extension Service'' and inserting 
        ``National Institute of Food and Agriculture''.
            (30) Section 103(a) of the Agricultural Research, 
        Extension, and Education Reform Act of 1998 (7 U.S.C. 7613(a)) 
        is amended--
                    (A) in the subsection heading, by striking 
                ``Cooperative State Research, Education, and Extension 
                Service'' and inserting ``National Institute of Food 
                and Agriculture''; and
                    (B) in each of paragraphs (1) and (2)(A), by 
                striking ``the Cooperative State Research, Education, 
                and Extension Service'' and inserting ``the National 
                Institute of Food and Agriculture''.
            (31) Section 407(c) of the Agricultural Research, 
        Extension, and Education Reform Act of 1998 (7 U.S.C. 7627(c)) 
        is amended by striking ``the Cooperative State Research, 
        Education, and Extension Service'' and inserting ``the National 
        Institute of Food and Agriculture''.
            (32) Section 410(a) of the Agricultural Research, 
        Extension, and Education Reform Act of 1998 (7 U.S.C. 7630(a)) 
        is amended by striking ``the Administrator of the Cooperative 
        State Research, Education, and Extension Service'' and 
        inserting ``the Director of the National Institute of Food and 
        Agriculture''.
            (33) Section 307(g)(5) of the Agricultural Risk Protection 
        Act of 2000 (7 U.S.C. 8606(g)(5)) is amended by striking 
        ``Administrator of the Cooperative State Research, Education, 
        and Extension Service'' and inserting ``Director of the 
        National Institute of Food and Agriculture''.
            (34) Section 5(a) of the Renewable Resources Extension Act 
        of 1978 (16 U.S.C. 1674a(a)) is amended by striking ``Extension 
        Service'' and inserting ``National Institute of Food and 
        Agriculture''.
            (35) Section 6(b) of the Cooperative Forestry Assistance 
        Act of 1978 (16 U.S.C. 2103b(b)) is amended by striking ``the 
        Cooperative State Research, Education, and Extension Service, 
        may provide technical, financial, and related assistance to 
        State foresters, equivalent State officials, or Cooperative 
        Extension officials'' and inserting ``the National Institute of 
        Food and Agriculture, may provide technical, financial, and 
        related assistance to State foresters, equivalent State 
        officials, or cooperative extension officials''.
            (36) Section 9(g)(2)(A)(viii) of the Cooperative Forestry 
        Assistance Act of 1978 (16 U.S.C. 2105(g)(2)(A)(viii)) is 
        amended by striking ``Extension Service'' and inserting 
        ``National Institute of Food and Agriculture''.
            (37) Section 19(b)(1)(B)(i) of the Cooperative Forestry 
        Assistance Act of 1978 (16 U.S.C. 2113(b)(1)(B)(i)) is amended 
        by striking ``Extension Service'' and inserting ``National 
        Institute of Food and Agriculture''.
            (38) Section 1261(c)(4) of the Food Security Act of 1985 
        (16 U.S.C. 3861(c)(4)) is amended by striking ``Extension 
        Service'' and inserting ``National Institute of Food and 
        Agriculture''.
            (39) Section 105(a) of the Africa: Seeds of Hope Act of 
        1998 (22 U.S.C. 2293 note; Public Law 105-385) is amended by 
        striking ``the Cooperative State, Research, Education, and 
        Extension Service (CSREES)'' and inserting ``the National 
        Institute of Food and Agriculture''.
            (40) Section 307(a)(4) of the National Aeronautic and Space 
        Administration Authorization Act of 2005 (42 U.S.C. 
        16657(a)(4)) is amended by striking subparagraph (B) and 
        inserting the following:
                    ``(B) the program and structure of, peer review 
                process of, management of conflicts of interest by, 
                compensation of reviewers of, and the effects of 
                compensation on reviewer efficiency and quality within, 
                the National Institute of Food and Agriculture of the 
                Department of Agriculture;''.

               PART III--NEW GRANT AND RESEARCH PROGRAMS

SEC. 7521. RESEARCH AND EDUCATION GRANTS FOR THE STUDY OF ANTIBIOTIC-
              RESISTANT BACTERIA.

    (a) In General.--The Secretary shall provide research and education 
grants, on a competitive basis--
            (1) to study the development of antibiotic-resistant 
        bacteria, including--
                    (A) movement of antibiotic-resistant bacteria into 
                groundwater and surface water; and
                    (B) the effect on antibiotic resistance from 
                various drug use regimens; and
            (2) to study and ensure the judicious use of antibiotics in 
        veterinary and human medicine, including--
                    (A) methods and practices of animal husbandry;
                    (B) safe and effective alternatives to antibiotics;
                    (C) the development of better veterinary 
                diagnostics to improve decisionmaking; and
                    (D) the identification of conditions or factors 
                that affect antibiotic use on farms.
    (b) Administration.--Paragraphs (4), (7), (8), and (11)(B) of 
subsection (b) of the Competitive, Special, and Facilities Research 
Grant Act (7 U.S.C. 450i) shall apply with respect to the making of 
grants under this section.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2008 through 2012.

SEC. 7522. FARM AND RANCH STRESS ASSISTANCE NETWORK.

    (a) In General.--The Secretary, in coordination with the Secretary 
of Health and Human Services, shall make competitive grants to support 
cooperative programs between State cooperative extension services and 
nonprofit organizations to establish a Farm and Ranch Stress Assistance 
Network that provides stress assistance programs to individuals who are 
engaged in farming, ranching, and other agriculture-related 
occupations.
    (b) Eligible Programs.--Grants awarded under subsection (a) may be 
used to initiate, expand, or sustain programs that provide professional 
agricultural behavioral health counseling and referral for other forms 
of assistance as necessary through--
            (1) farm telephone helplines and websites;
            (2) community education;
            (3) support groups;
            (4) outreach services and activities; and
            (5) home delivery of assistance, in a case in which a farm 
        resident is homebound.
    (c) Extension Services.--Grants shall be awarded under this 
subsection directly to State cooperative extension services to enable 
the State cooperative extension services to enter into contracts, on a 
multiyear basis, with nonprofit, community-based, direct-service 
organizations to initiate, expand, or sustain cooperative programs 
described in subsections (a) and (b).
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2008 through 2012.

SEC. 7523. SEED DISTRIBUTION.

    (a) In General.--The Secretary shall make competitive grants to 
eligible entities to carry out a seed distribution program to 
administer and maintain the distribution of vegetable seeds donated by 
commercial seed companies.
    (b) Purposes.--The purposes of this program include--
            (1) the distribution of seeds donated by commercial seed 
        companies free-of-charge to appropriate--
                    (A) individuals;
                    (B) groups;
                    (C) institutions;
                    (D) governmental and nongovernmental organizations; 
                and
                    (E) such other entities as the Secretary may 
                designate;
            (2) distribution of seeds to underserved communities, such 
        as communities that experience--
                    (A) limited access to affordable fresh vegetables;
                    (B) a high rate of hunger or food insecurity; or
                    (C) severe or persistent poverty.
    (c) Administration.--Paragraphs (4), (7), (8), and (11)(B) of 
subsection (b) of the Competitive, Special, and Facilities Research 
Grant Act (7 U.S.C. 450i) shall apply with respect to the making of 
grants under this section.
    (d) Selection.--An eligible entity selected to receive a grant 
under subsection (a) shall have--
            (1) expertise regarding the distribution of vegetable seeds 
        donated by commercial seed companies; and
            (2) the ability to achieve the purpose of the seed 
        distribution program.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2008 through 2012.

SEC. 7524. LIVE VIRUS FOOT AND MOUTH DISEASE RESEARCH.

    (a) In General.--The Secretary shall issue a permit required under 
section 12 of the Act of May 29, 1884 (21 U.S.C. 113a) to the Secretary 
of Homeland Security for work on the live virus of foot and mouth 
disease at any facility that is a successor to the Plum Island Animal 
Disease Center and charged with researching high-consequence biological 
threats involving zoonotic and foreign animal diseases (referred to in 
this section as the ``successor facility'').
    (b) Limitation to Single Facility.--Not more than 1 facility shall 
be issued a permit under subsection (a).
    (c) Limitation on Validity.--The permit issued under this section 
shall be valid unless the Secretary determines that the study of live 
foot and mouth disease virus at the successor facility is not being 
carried out in accordance with the regulations promulgated by the 
Secretary pursuant to the Agricultural Bioterrorism Protection Act of 
2002 (7 U.S.C. 8401 et seq.).
    (d) Authority.--The suspension, revocation, or other impairment of 
the permit issued under this section--
            (1) shall be made by the Secretary; and
            (2) is a nondelegable function.

SEC. 7525. NATURAL PRODUCTS RESEARCH PROGRAM.

    (a) In General.--The Secretary shall establish within the 
Department a natural products research program.
    (b) Duties.--In carrying out the program established under 
subsection (a), the Secretary shall coordinate research relating to 
natural products, including--
            (1) research to improve human health and agricultural 
        productivity through the discovery, development, and 
        commercialization of products and agrichemicals from bioactive 
        natural products, including products from plant, marine, and 
        microbial sources;
            (2) research to characterize the botanical sources, 
        production, chemistry, and biological properties of plant-
        derived natural products; and
            (3) other research priorities identified by the Secretary.
    (c) Peer and Merit Review.--The Secretary shall--
            (1) determine the relevance and merit of research under 
        this section through a system of peer review established by the 
        Secretary pursuant to section 103 of the Agricultural Research, 
        Extension, and Education Reform Act of 1998 (7 U.S.C. 7613); 
        and
            (2) approve funding for research on the basis of merit, 
        quality, and relevance to advancing the purposes of this 
        section.
    (d) Buildings and Facilities.--Funds made available under this 
section shall not be used for the construction of a new building or 
facility or the acquisition, expansion, remodeling, or alteration of an 
existing building or facility (including site grading and improvement 
and architect fees).
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary for 
each of fiscal years 2008 through 2012.

SEC. 7526. SUN GRANT PROGRAM.

    (a) Establishment.--The Secretary shall establish and carry out a 
program to provide grants to the sun grant centers and subcenter 
specified in subsection (b)--
            (1) to enhance national energy security through the 
        development, distribution, and implementation of biobased 
        energy technologies;
            (2) to promote diversification in, and the environmental 
        sustainability of, agricultural production in the United States 
        through biobased energy and product technologies;
            (3) to promote economic diversification in rural areas of 
        the United States through biobased energy and product 
        technologies; and
            (4) to enhance the efficiency of bioenergy and biomass 
        research and development programs through improved coordination 
        and collaboration among--
                    (A) the Department of Agriculture;
                    (B) the Department of Energy; and
                    (C) land-grant colleges and universities.
    (b) Grants.--
            (1) In general.--The Secretary shall use amounts made 
        available under subsection (g) to provide grants to each of the 
        following:
                    (A) North-central center.--A north-central sun 
                grant center at South Dakota State University for the 
                region composed of the States of Illinois, Indiana, 
                Iowa, Minnesota, Montana, Nebraska, North Dakota, South 
                Dakota, Wisconsin, and Wyoming.
                    (B) Southeastern center.--A southeastern sun grant 
                center at the University of Tennessee at Knoxville for 
                the region composed of--
                            (i) the States of Alabama, Florida, 
                        Georgia, Kentucky, Mississippi, North Carolina, 
                        South Carolina, Tennessee, and Virginia;
                            (ii) the Commonwealth of Puerto Rico; and
                            (iii) the United States Virgin Islands.
                    (C) South-central center.--A south-central sun 
                grant center at Oklahoma State University for the 
                region composed of the States of Arkansas, Colorado, 
                Kansas, Louisiana, Missouri, New Mexico, Oklahoma, and 
                Texas.
                    (D) Western center.--A western sun grant center at 
                Oregon State University for the region composed of--
                            (i) the States of Alaska, Arizona, 
                        California, Hawaii, Idaho, Nevada, Oregon, 
                        Utah, and Washington; and
                            (ii) insular areas (as defined in section 
                        1404 of the National Agricultural Research, 
                        Extension, and Teaching Policy Act of 1977 (7 
                        U.S.C. 3103 (other than the insular areas 
                        referred to in clauses (ii) and (iii) of 
                        subparagraph (B))).
                    (E) Northeastern center.--A northeastern sun grant 
                center at Cornell University for the region composed of 
                the States of Connecticut, Delaware, Massachusetts, 
                Maryland, Maine, Michigan, New Hampshire, New Jersey, 
                New York, Ohio, Pennsylvania, Rhode Island, Vermont, 
                and West Virginia.
                    (F) Western insular pacific subcenter.--A western 
                insular Pacific sun grant subcenter at the University 
                of Hawaii for the region of Alaska, Hawaii, Guam, 
                American Samoa, the Commonwealth of the Northern 
                Mariana Islands, the Federated States of Micronesia, 
                the Republic of the Marshall Islands, and the Republic 
                of Palau.
            (2) Manner of distribution.--
                    (A) Centers.--In providing any funds made available 
                under subsection (g), the Secretary shall distribute 
                the grants in equal amounts to the sun grant centers 
                described in subparagraphs (A) through (E) of paragraph 
                (1).
                    (B) Subcenter.--The sun grant center described in 
                paragraph (1)(D) shall allocate a portion of the funds 
                received under paragraph (1) to the subcenter described 
                in paragraph (1)(F) pursuant to guidance issued by the 
                Secretary.
            (3) Failure to comply with requirements.--If the Secretary 
        finds on the basis of a review of the annual report required 
        under subsection (f) or on the basis of an audit of a sun grant 
        center or subcenter conducted by the Secretary that the center 
        or subcenter has not complied with the requirements of this 
        section, the sun grant center or subcenter shall be ineligible 
        to receive further grants under this section for such period of 
        time as may be prescribed by the Secretary.
    (c) Use of Funds.--
            (1) Competitive grants.--
                    (A) In general.--A sun grant center or subcenter 
                shall use 75 percent of the funds described in 
                subsection (b) to provide competitive grants to 
                entities that are--
                            (i) eligible to receive grants under 
                        subsection (b)(7) of the Competitive, Special, 
                        and Facilities Research Grant Act (7 U.S.C. 
                        450i(b)(7)); and
                            (ii) located in the region covered by the 
                        sun grant center or subcenter.
                    (B) Activities.--Grants described in subparagraph 
                (A) shall be used by the grant recipient to conduct, in 
                a manner consistent with the purposes described in 
                subsection (a), multi-institutional and multistate--
                            (i) research, extension, and education 
                        programs on technology development; and
                            (ii) integrated research, extension, and 
                        education programs on technology 
                        implementation.
                    (C) Funding allocation.--Of the amount of funds 
                that is used to provide grants under subparagraph (A), 
                the sun grant center or subcenter shall use--
                            (i) not less than 30 percent of the funds 
                        to carry out the programs described in 
                        subparagraph (B)(i); and
                            (ii) not less than 30 percent of the funds 
                        to carry out the programs described in 
                        subparagraph (B)(ii).
                    (D) Administration.--
                            (i) Peer and merit review.--In making 
                        grants under this paragraph, a sun grant center 
                        or subcenter shall--
                                    (I) seek and accept proposals for 
                                grants;
                                    (II) determine the relevance and 
                                merit of proposals through a system of 
                                peer review similar to that established 
                                by the Secretary pursuant to section 
                                103 of the Agricultural Research, 
                                Extension, and Education Reform Act of 
                                1998 (7 U.S.C. 7613); and
                                    (III) award grants on the basis of 
                                merit, quality, and relevance to 
                                advancing the purposes of this section.
                            (ii) Priority.--A sun grant center or 
                        subcenter shall give a higher priority to 
                        programs that are consistent with the plan 
                        approved by the Secretary under subsection (d).
                            (iii) Term.--A grant awarded by a sun grant 
                        center or subcenter shall have a term that does 
                        not exceed 5 years.
                            (iv) Matching funds required.--
                                    (I) In general.--Except as provided 
                                in subclauses (II) and (III), as a 
                                condition of receiving a grant under 
                                this paragraph, the sun grant center or 
                                subcenter shall require that not less 
                                than 20 percent of the cost of an 
                                activity described in subparagraph (B) 
                                be matched with funds, including in-
                                kind contributions, from a non-Federal 
                                source.
                                    (II) Exclusion.--Subclause (I) 
                                shall not apply to fundamental research 
                                (as defined in subsection (f)(1) of 
                                section 251 of the Department of 
                                Agriculture Reorganization Act of 1994 
                                (7 U.S.C. 6971) (as added by section 
                                7511(a)(4)).
                                    (III) Reduction.--The sun grant 
                                center or subcenter may reduce or 
                                eliminate the requirement for non-
                                Federal funds under subclause (I) for 
                                applied research (as defined in 
                                subsection (f)(1) of section 251 of the 
                                Department of Agriculture 
                                Reorganization Act of 1994 (7 U.S.C. 
                                6971) (as added by section 7511(a)(4)) 
                                if the sun grant center or subcenter 
                                determines that the reduction is 
                                necessary and appropriate pursuant to 
                                guidance issued by the Secretary.
                            (v) Buildings and facilities.--Funds made 
                        available for grants shall not be used for the 
                        construction of a new building or facility or 
                        the acquisition, expansion, remodeling, or 
                        alteration of an existing building or facility 
                        (including site grading and improvement and 
                        architect fees).
                            (vi) Limitation on indirect costs.--A sun 
                        grant center or subcenter may not recover the 
                        indirect costs of making grants under 
                        subparagraph (A).
            (2) Administrative expenses.--A sun grant center or 
        subcenter may use up to 4 percent of the funds described in 
        subsection (b) to pay administrative expenses incurred in 
        carrying out paragraph (1).
            (3) Research, extension and educational activities.--The 
        sun grant centers and subcenter shall use the remainder of the 
        funds described in subsection (b) to conduct, in a manner 
        consistent with the purposes described in subsection (a), 
        multi-institutional and multistate--
                    (A) research, extension, and educational programs 
                on technology development; and
                    (B) integrated research, extension, and educational 
                programs on technology implementation.
    (d) Plan for Research Activities to Be Funded.--
            (1) In general.--Subject to the availability of funds under 
        subsection (g), and in cooperation with land-grant colleges and 
        universities and private industry in accordance with paragraph 
        (2), the sun grant centers and subcenter shall jointly develop 
        and submit to the Secretary for approval a plan for addressing 
        the bioenergy, biomass, and gasification research priorities of 
        the Department of Agriculture and the Department of Energy at 
        the State and regional levels.
            (2) Gasification coordination.--With respect to 
        gasification research activity, the sun grant centers and 
        subcenter shall coordinate planning with land-grant colleges 
        and universities in their respective regions that have ongoing 
        research activities in that area.
            (3) Funding.--Funds described in subsection (c)(2) shall be 
        available to carry out planning coordination under paragraph 
        (1).
            (4) Use of plan.--The sun grant centers and subcenter shall 
        use the plan described in paragraph (1) in making grants under 
        subsection (c)(1).
    (e) Grant Information Analysis Center.--The sun grant centers and 
subcenter shall maintain a Sun Grant Information Analysis Center at the 
sun grant center specified in subsection (b)(1)(A) to provide the sun 
grant centers and subcenter with analysis and data management support.
    (f) Annual Reports.--Not later than 90 days after the end of each 
fiscal year, a sun grant center or subcenter receiving a grant under 
this section shall submit to the Secretary a report that describes the 
policies, priorities, and operations of the program carried out by the 
center or subcenter during the fiscal year, including--
            (1) the results of all peer and merit review procedures 
        conducted pursuant to subsection (c)(1)(D)(i); and
            (2) a description of progress made in facilitating the 
        priorities described in subsection (d)(1).
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $75,000,000 for each of fiscal 
years 2008 through 2012, of which not more than $4,000,000 for each 
fiscal year shall be made available to carry out subsection (e).

SEC. 7527. STUDY AND REPORT ON FOOD DESERTS.

    (a) Definition of Food Desert.--In this section, the term ``food 
desert'' means an area in the United States with limited access to 
affordable and nutritious food, particularly such an area composed of 
predominantly lower-income neighborhoods and communities.
    (b) Study and Report.--The Secretary shall carry out a study of, 
and prepare a report on, food deserts.
    (c) Contents.--The study and report shall--
            (1) assess the incidence and prevalence of food deserts;
            (2) identify--
                    (A) characteristics and factors causing and 
                influencing food deserts; and
                    (B) the effect on local populations of limited 
                access to affordable and nutritious food; and
            (3) provide recommendations for addressing the causes and 
        effects of food deserts through measures that include--
                    (A) community and economic development initiatives;
                    (B) incentives for retail food market development, 
                including supermarkets, small grocery stores, and 
                farmers' markets; and
                    (C) improvements to Federal food assistance and 
                nutrition education programs.
    (d) Coordination With Other Agencies and Organizations.--The 
Secretary shall conduct the study under this section in coordination 
and consultation with--
            (1) the Secretary of Health and Human Services;
            (2) the Administrator of the Small Business Administration;
            (3) the Institute of Medicine; and
            (4) representatives of appropriate businesses, academic 
        institutions, and nonprofit and faith-based organizations.
    (e) Submission to Congress.--Not later than 1 year after the date 
of enactment of this Act, the Secretary shall submit to the Committee 
on Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate the report prepared 
under this section, including the findings and recommendations 
described in subsection (c).
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $500,000.

SEC. 7528. DEMONSTRATION PROJECT AUTHORITY FOR TEMPORARY POSITIONS.

    Notwithstanding section 4703(d)(1) of title 5, United States Code, 
the amendment to the personnel management demonstration project 
established in the Department of Agriculture (67 Fed. Reg. 70776 
(2002)), shall become effective upon the date of enactment of this Act 
and shall remain in effect unless modified by law.

SEC. 7529. AGRICULTURAL AND RURAL TRANSPORTATION RESEARCH AND 
              EDUCATION.

    (a) In General.--The Secretary, in consultation with the Secretary 
of Transportation, shall make competitive grants to institutions of 
higher education to carry out agricultural and rural transportation 
research and education activities.
    (b) Activities.--Research and education grants made under this 
section shall be used to address rural transportation and logistics 
needs of agricultural producers and related rural businesses, 
including--
            (1) the transportation of biofuels; and
            (2) the export of agricultural products.
    (c) Selection Criteria.--
            (1) In general.--The Secretary shall award grants under 
        this section on the basis of the transportation research, 
        education, and outreach expertise of the applicant, as 
        determined by the Secretary.
            (2) Priority.--In awarding grants under this section, the 
        Secretary shall give priority to institutions of higher 
        education for use in coordinating research and education 
        activities with other institutions of higher education with 
        similar agricultural and rural transportation research and 
        education programs.
    (d) Diversification of Research.--The Secretary shall award grants 
under this section in areas that are regionally diverse and broadly 
representative of the diversity of agricultural production and related 
transportation needs in the rural areas of the United States.
    (e) Matching Funds Requirement.--The Secretary shall require each 
recipient of a grant under this section to provide, from non-Federal 
sources, in cash or in kind, 50 percent of the cost of carrying out 
activities under the grant.
    (f) Grant Review.--A grant shall be awarded under this section on a 
competitive, peer- and merit-reviewed basis in accordance with section 
103(a) of the Agricultural Research, Extension, and Education Reform 
Act of 1998 (7 U.S.C. 7613(a)).
    (g) No Duplication.--In awarding grants under this section, the 
Secretary shall ensure that activities funded under this section do not 
duplicate the efforts of the University Transportation Centers 
described in sections 5505 and 5506 of title 49, United States Code.
    (h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2008 through 2012.

                          TITLE VIII--FORESTRY

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

SEC. 8001. NATIONAL PRIORITIES FOR PRIVATE FOREST CONSERVATION.

    Section 2 of the Cooperative Forestry Assistance Act of 1978 (16 
U.S.C. 2101) is amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (e) and (f), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsections:
    ``(c) Priorities.--In allocating funds appropriated or otherwise 
made available under this Act, the Secretary shall focus on the 
following national private forest conservation priorities, 
notwithstanding other priorities specified elsewhere in this Act:
            ``(1) Conserving and managing working forest landscapes for 
        multiple values and uses.
            ``(2) Protecting forests from threats, including 
        catastrophic wildfires, hurricanes, tornados, windstorms, snow 
        or ice storms, flooding, drought, invasive species, insect or 
        disease outbreak, or development, and restoring appropriate 
        forest types in response to such threats.
            ``(3) Enhancing public benefits from private forests, 
        including air and water quality, soil conservation, biological 
        diversity, carbon storage, forest products, forestry-related 
        jobs, production of renewable energy, wildlife, wildlife 
        corridors and wildlife habitat, and recreation.
    ``(d) Reporting Requirement.--Not later than September 30, 2011, 
the Secretary shall submit to Congress a report describing how funds 
were used under this Act, and through other programs administered by 
the Secretary, to address the national priorities specified in 
subsection (c) and the outcomes achieved in meeting the national 
priorities.''.

SEC. 8002. LONG-TERM STATE-WIDE ASSESSMENTS AND STRATEGIES FOR FOREST 
              RESOURCES.

    The Cooperative Forestry Assistance Act of 1978 is amended by 
inserting after section 2 (16 U.S.C. 2101) the following new section:

``SEC. 2A. STATE-WIDE ASSESSMENT AND STRATEGIES FOR FOREST RESOURCES.

    ``(a) Assessment and Strategies for Forest Resources.--For a State 
to be eligible to receive funds under the authorities of this Act, the 
State forester of that State or equivalent State official shall develop 
and submit to the Secretary, not later than two years after the date of 
enactment of the Food, Conservation, and Energy Act of 2008, the 
following:
            ``(1) A State-wide assessment of forest resource 
        conditions, including--
                    ``(A) the conditions and trends of forest resources 
                in that State;
                    ``(B) the threats to forest lands and resources in 
                that State consistent with the national priorities 
                specified in section 2(c);
                    ``(C) any areas or regions of that State that are a 
                priority; and
                    ``(D) any multi-State areas that are a regional 
                priority.
            ``(2) A long-term State-wide forest resource strategy, 
        including--
                    ``(A) strategies for addressing threats to forest 
                resources in the State outlined in the assessment 
                required by paragraph (1); and
                    ``(B) a description of the resources necessary for 
                the State forester or equivalent State official from 
                all sources to address the State-wide strategy.
    ``(b) Updating.--At such times as the Secretary determines to be 
necessary, the State forester or equivalent State official shall update 
and resubmit to the Secretary the State-wide assessment and State-wide 
strategy required by subsection (a).
    ``(c) Coordination.--In developing or updating the State-wide 
assessment and State-wide strategy required by subsection (a), the 
State Forester or equivalent State official shall coordinate with--
            ``(1) the State Forest Stewardship Coordinating Committee 
        established for the State under section 19(b);
            ``(2) the State wildlife agency, with respect to strategies 
        contained in the State wildlife action plans;
            ``(3) the State Technical Committee;
            ``(4) applicable Federal land management agencies; and
            ``(5) for purposes of the Forest Legacy Program under 
        section 7, the State lead agency designated by the Governor.
    ``(d) Incorporation of Other Plans.--In developing or updating the 
State-wide assessment and State-wide strategy required by subsection 
(a), the State forester or equivalent State official shall incorporate 
any forest management plan of the State, including community wildfire 
protection plans and State wildlife action plans.
    ``(e) Sufficiency.--Once approved by the Secretary, a State-wide 
assessment and State-wide strategy developed under subsection (a) shall 
be deemed to be sufficient to satisfy all relevant State planning and 
assessment requirements under this Act.
    ``(f) Funding.--
            ``(1) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this section up to 
        $10,000,000 for each of fiscal years 2008 through 2012.
            ``(2) Additional funding sources.--In addition to the funds 
        appropriated for a fiscal year pursuant to the authorization of 
        appropriations in paragraph (1) to carry out this section, the 
        Secretary may use any other funds made available for planning 
        under this Act to carry out this section, except that the total 
        amount of combined funding used to carry out this section may 
        not exceed $10,000,000 in any fiscal year.
    ``(g) Annual Report on Use of Funds.--The State forester or 
equivalent State official shall submit to the Secretary an annual 
report detailing how funds made available to the State under this Act 
are being used.''.

SEC. 8003. COMMUNITY FOREST AND OPEN SPACE CONSERVATION PROGRAM.

    (a) Findings.--Congress finds that--
            (1) the Forest Service projects that, by calendar year 
        2030, approximately 44,000,000 acres of privately-owned forest 
        land will be developed throughout the United States;
            (2) public access to parcels of privately-owned forest land 
        for outdoor recreational activities, including hunting, 
        fishing, and trapping, has declined and, as a result, 
        participation in those activities has also declined in cases in 
        which public access is not secured;
            (3) rising rates of obesity and other public health 
        problems relating to the inactivity of the citizens of the 
        United States have been shown to be ameliorated by improving 
        public access to safe and attractive areas for outdoor 
        recreation;
            (4) in rapidly-growing communities of all sizes throughout 
        the United States, remaining parcels of forest land play an 
        essential role in protecting public water supplies;
            (5) forest parcels owned by local governmental entities and 
        nonprofit organizations are providing important demonstration 
        sites for private landowners to learn forest management 
        techniques;
            (6) throughout the United States, communities of diverse 
        types and sizes are deriving significant financial and 
        community benefits from managing forest land owned by local 
        governmental entities for timber and other forest products; and
            (7) there is an urgent need for local governmental entities 
        to be able to leverage financial resources in order to purchase 
        important parcels of privately-owned forest land as the parcels 
        are offered for sale.
    (b) Community Forest and Open Space Conservation Program.--The 
Cooperative Forestry Assistance Act of 1978 is amended by inserting 
after section 7 (16 U.S.C. 2103c) the following new section:

``SEC. 7A. COMMUNITY FOREST AND OPEN SPACE CONSERVATION PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' means a 
        local governmental entity, Indian tribe, or nonprofit 
        organization that owns or acquires a parcel under the program.
            ``(2) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            ``(3) Local governmental entity.--The term `local 
        governmental entity' includes any municipal government, county 
        government, or other local government body with jurisdiction 
        over local land use decisions.
            ``(4) Nonprofit organization.--The term `nonprofit 
        organization' means any organization that--
                    ``(A) is described in section 170(h)(3) of the 
                Internal Revenue Code of 1986; and
                    ``(B) operates in accordance with 1 or more of the 
                purposes specified in section 170(h)(4)(A) of that 
                Code.
            ``(5) Program.--The term `Program' means the community 
        forest and open space conservation program established under 
        subsection (b).
            ``(6) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting through the Chief of the Forest Service.
    ``(b) Establishment.--The Secretary shall establish a program, to 
be known as the `community forest and open space conservation program'.
    ``(c) Grant Program.--
            ``(1) In general.--The Secretary may award grants to 
        eligible entities to acquire private forest land, to be owned 
        in fee simple, that--
                    ``(A) are threatened by conversion to nonforest 
                uses; and
                    ``(B) provide public benefits to communities, 
                including--
                            ``(i) economic benefits through sustainable 
                        forest management;
                            ``(ii) environmental benefits, including 
                        clean water and wildlife habitat;
                            ``(iii) benefits from forest-based 
                        educational programs, including vocational 
                        education programs in forestry;
                            ``(iv) benefits from serving as models of 
                        effective forest stewardship for private 
                        landowners; and
                            ``(v) recreational benefits, including 
                        hunting and fishing.
            ``(2) Federal cost share.--An eligible entity may receive a 
        grant under the Program in an amount equal to not more than 50 
        percent of the cost of acquiring 1 or more parcels, as 
        determined by the Secretary.
            ``(3) Non-federal share.--As a condition of receipt of the 
        grant, an eligible entity that receives a grant under the 
        Program shall provide, in cash, donation, or in kind, a non-
        Federal matching share in an amount that is at least equal to 
        the amount of the grant received.
            ``(4) Appraisal of parcels.--To determine the non-Federal 
        share of the cost of a parcel of privately-owned forest land 
        under paragraph (2), an eligible entity shall require 
        appraisals of the land that comply with the Uniform Appraisal 
        Standards for Federal Land Acquisitions developed by the 
        Interagency Land Acquisition Conference.
            ``(5) Application.--An eligible entity that seeks to 
        receive a grant under the Program shall submit to the State 
        forester or equivalent official (or in the case of an Indian 
        tribe, an equivalent official of the Indian tribe) an 
        application that includes--
                    ``(A) a description of the land to be acquired;
                    ``(B) a forest plan that provides--
                            ``(i) a description of community benefits 
                        to be achieved from the acquisition of the 
                        private forest land; and
                            ``(ii) an explanation of the manner in 
                        which any private forest land to be acquired 
                        using funds from the grant will be managed; and
                    ``(C) such other relevant information as the 
                Secretary may require.
            ``(6) Effect on trust land.--
                    ``(A) Ineligibility.--The Secretary shall not 
                provide a grant under the Program for any project on 
                land held in trust by the United States (including 
                Indian reservations and allotment land).
                    ``(B) Acquired land.--No land acquired using a 
                grant provided under the Program shall be converted to 
                land held in trust by the United States on behalf of 
                any Indian tribe.
            ``(7) Applications to secretary.--The State forester or 
        equivalent official (or in the case of an Indian tribe, an 
        equivalent official of the Indian tribe) shall submit to the 
        Secretary a list that includes a description of each project 
        submitted by an eligible entity at such times and in such form 
        as the Secretary shall prescribe.
    ``(d) Duties of Eligible Entity.--An eligible entity shall provide 
public access to, and manage, forest land acquired with a grant under 
this section in a manner that is consistent with the purposes for which 
the land was acquired under the Program.
    ``(e) Prohibited Uses.--
            ``(1) In general.--Subject to paragraphs (2) and (3), an 
        eligible entity that acquires a parcel under the Program shall 
        not sell the parcel or convert the parcel to nonforest use.
            ``(2) Reimbursement of funds.--An eligible entity that 
        sells or converts to nonforest use a parcel acquired under the 
        Program shall pay to the Federal Government an amount equal to 
        the greater of the current sale price, or current appraised 
        value, of the parcel.
            ``(3) Loss of eligibility.--An eligible entity that sells 
        or converts a parcel acquired under the Program shall not be 
        eligible for additional grants under the Program.
    ``(f) State Administration and Technical Assistance.--The Secretary 
may allocate not more than 10 percent of all funds made available to 
carry out the Program for each fiscal year to State foresters or 
equivalent officials (including equivalent officials of Indian tribes) 
for Program administration and technical assistance.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.

SEC. 8004. ASSISTANCE TO THE FEDERATED STATES OF MICRONESIA, THE 
              REPUBLIC OF THE MARSHALL ISLANDS, AND THE REPUBLIC OF 
              PALAU.

    Section 13(d)(1) of the Cooperative Forestry Act of 1978 (16 U.S.C. 
2109(d)(1)) is amended by striking ``the Trust Territory of the Pacific 
Islands,'' and inserting ``the Federated States of Micronesia, the 
Republic of the Marshall Islands, the Republic of Palau,''.

SEC. 8005. CHANGES TO FOREST RESOURCE COORDINATING COMMITTEE.

    Section 19 of the Cooperative Forestry Assistance Act of 1978 (16 
U.S.C. 2113) is amended by striking subsection (a) and inserting the 
following new subsection:
    ``(a) Forest Resource Coordinating Committee.--
            ``(1) Establishment.--The Secretary shall establish a 
        committee, to be known as the `Forest Resource Coordinating 
        Committee' (in this section referred to as the `Coordinating 
        Committee'), to coordinate nonindustrial private forestry 
        activities within the Department of Agriculture and with the 
        private sector.
            ``(2) Composition.--The Coordinating Committee shall be 
        composed of the following:
                    ``(A) The Chief of the Forest Service.
                    ``(B) The Chief of the Natural Resources 
                Conservation Service.
                    ``(C) The Director of the Farm Service Agency.
                    ``(D) The Director of the National Institute of 
                Food and Agriculture.
                    ``(E) Non-Federal representatives appointed by the 
                Secretary to 3 year terms, although initial appointees 
                shall have staggered terms, including the following 
                persons:
                            ``(i) At least three State foresters or 
                        equivalent State officials from geographically 
                        diverse regions of the United States.
                            ``(ii) A representative of a State fish and 
                        wildlife agency.
                            ``(iii) An owner of nonindustrial private 
                        forest land.
                            ``(iv) A forest industry representative.
                            ``(v) A conservation organization 
                        representative.
                            ``(vi) A land-grant university or college 
                        representative.
                            ``(vii) A private forestry consultant.
                            ``(viii) A representative from a State 
                        Technical Committee established under section 
                        1261 of the Food Security Act of 1985 (16 
                        U.S.C. 3861).
                    ``(F) Such other persons as determined by the 
                Secretary to be appropriate.
            ``(3) Chairperson.--The Chief of the Forest Service shall 
        serve as chairperson of the Coordinating Committee.
            ``(4) Duties.--The Coordinating Committee shall--
                    ``(A) provide direction and coordination of actions 
                within the Department of Agriculture, and coordination 
                with State agencies and the private sector, to 
                effectively address the national priorities specified 
                in section 2(c), with specific focus owners of 
                nonindustrial private forest land;
                    ``(B) clarify individual agency responsibilities of 
                each agency represented on the Coordinating Committee 
                concerning the national priorities specified in section 
                2(c), with specific focus on nonindustrial private 
                forest land;
                    ``(C) provide advice on the allocation of funds, 
                including the competitive funds set-aside by sections 
                13A and 13B; and
                    ``(D) assist the Secretary in developing and 
                reviewing the report required by section 2(d).
            ``(5) Meeting.--The Coordinating Committee shall meet 
        annually to discuss progress in addressing the national 
        priorities specified in section 2(c) and issues regarding 
        nonindustrial private forest land.
            ``(6) Compensation.--
                    ``(A) Federal members.--Members of the Coordinating 
                Committee who are full-time officers or employees of 
                the United States shall receive no additional pay, 
                allowances, or benefits by reason of their service on 
                the Coordinating Committee.
                    ``(B) Non-federal members.--Non-federal members of 
                the Coordinating Committee shall serve without pay, but 
                may be reimbursed for reasonable costs incurred while 
                performing their duties on behalf of the Coordinating 
                Committee.''.

SEC. 8006. CHANGES TO STATE FOREST STEWARDSHIP COORDINATING COMMITTEES.

    Section 19(b) of the Cooperative Forestry Assistance Act of 1978 
(16 U.S.C. 2113(b)) is amended--
            (1) in paragraph (1)(B)(ii)--
                    (A) by striking ``and'' at the end of subclause 
                (VII); and
                    (B) by adding at the end the following new 
                subclause:
                                    ``(IX) the State Technical 
                                Committee.''.
            (2) in paragraph (2)(C), by striking ``a Forest Stewardship 
        Plan under paragraph (3)'' and inserting ``the State-wide 
        assessment and strategy regarding forest resource conditions 
        under section 2A'';
            (3) by striking paragraphs (3) and (4); and
            (4) by redesignating paragraphs (5) and (6) as paragraphs 
        (3) and (4), respectively.

SEC. 8007. COMPETITION IN PROGRAMS UNDER COOPERATIVE FORESTRY 
              ASSISTANCE ACT OF 1978.

    The Cooperative Forestry Assistance Act of 1978 is amended by 
inserting after section 13 (16 U.S.C. 2109) the following new section:

``SEC. 13A. COMPETITIVE ALLOCATION OF FUNDS TO STATE FORESTERS OR 
              EQUIVALENT STATE OFFICIALS.

    ``(a) Competition.--Beginning not later than 3 years after the date 
of the enactment of the Food, Conservation, and Energy Act of 2008, the 
Secretary shall competitively allocate a portion, to be determined by 
the Secretary, of the funds available under this Act to State foresters 
or equivalent State officials.
    ``(b) Determination.--In determining the competitive allocation of 
funds under subsection (a), the Secretary shall consult with the Forest 
Resource Coordinating Committee established by section 19(a).
    ``(c) Priority.--The Secretary shall give priority for funding to 
States for which the long-term State-wide forest resource strategies 
submitted under section 2A(a)(2) will best promote the national 
priorities specified in section 2(c).''.

SEC. 8008. COMPETITIVE ALLOCATION OF FUNDS FOR COOPERATIVE FOREST 
              INNOVATION PARTNERSHIP PROJECTS.

    The Cooperative Forestry Assistance Act of 1978 is amended by 
inserting after section 13A, as added by section 8006, the following 
new section:

``SEC. 13B. COMPETITIVE ALLOCATION OF FUNDS FOR COOPERATIVE FOREST 
              INNOVATION PARTNERSHIP PROJECTS.

    ``(a) Cooperative Forest Innovation Partnership Projects.--The 
Secretary may competitively allocate not more than 5 percent of the 
funds made available under this Act to support innovative national, 
regional, or local education, outreach, or technology transfer projects 
that the Secretary determines would substantially increase the ability 
of the Department of Agriculture to address the national priorities 
specified in section 2(c).
    ``(b) Eligibility.--Notwithstanding the eligibility limitations 
contained in this Act, any State or local government, Indian tribe, 
land-grant college or university, or private entity shall be eligible 
to compete for funds to be competitively allocated under subsection 
(a).
    ``(c) Cost-Share Requirement.--In carrying out subsection (a), the 
Secretary shall not cover more than 50 percent of the total cost of a 
project under such subsection. In calculating the total cost of a 
project and contributions made with regard to the project, the 
Secretary shall include in-kind contributions.''.

        Subtitle B--Cultural and Heritage Cooperation Authority

SEC. 8101. PURPOSES.

    The purposes of this subtitle are--
            (1) to authorize the reburial of human remains and cultural 
        items on National Forest System land, including human remains 
        and cultural items repatriated under the Native American Graves 
        Protection and Repatriation Act (25 U.S.C. 3001 et seq.);
            (2) to prevent the unauthorized disclosure of information 
        regarding reburial sites, including the quantity and identity 
        of human remains and cultural items on sites and the location 
        of sites;
            (3) to authorize the Secretary of Agriculture to ensure 
        access to National Forest System land, to the maximum extent 
        practicable, by Indians and Indian tribes for traditional and 
        cultural purposes;
            (4) to authorize the Secretary to provide forest products, 
        without consideration, to Indian tribes for traditional and 
        cultural purposes;
            (5) to authorize the Secretary to protect the 
        confidentiality of certain information, including information 
        that is culturally sensitive to Indian tribes;
            (6) to increase the availability of Forest Service programs 
        and resources to Indian tribes in support of the policy of the 
        United States to promote tribal sovereignty and self-
        determination; and
            (7) to strengthen support for the policy of the United 
        States of protecting and preserving the traditional, cultural, 
        and ceremonial rites and practices of Indian tribes, in 
        accordance with Public Law 95-341 (commonly known as the 
        American Indian Religious Freedom Act; 42 U.S.C. 1996).

SEC. 8102. DEFINITIONS.

    In this subtitle:
            (1) Adjacent site.--The term ``adjacent site'' means a site 
        that borders a boundary line of National Forest System land.
            (2) Cultural items.--The term ``cultural items'' has the 
        meaning given the term in section 2 of the Native American 
        Graves Protection and Repatriation Act (25 U.S.C. 3001), except 
        that the term does not include human remains.
            (3) Human remains.--The term ``human remains'' means the 
        physical remains of the body of a person of Indian ancestry.
            (4) Indian.--The term ``Indian'' means an individual who is 
        a member of an Indian tribe.
            (5) Indian tribe.--The term ``Indian tribe'' means any 
        Indian or Alaska Native tribe, band, nation, pueblo, village, 
        or other community the name of which is included on a list 
        published by the Secretary of the Interior pursuant to section 
        104 of the Federally Recognized Indian Tribe List Act of 1994 
        (25 U.S.C. 479a-1).
            (6) Lineal descendant.--The term ``lineal descendant'' 
        means an individual that can trace, directly and without 
        interruption, the ancestry of the individual through the 
        traditional kinship system of an Indian tribe, or through the 
        common law system of descent, to a known Indian, the human 
        remains, funerary objects, or other sacred objects of whom are 
        claimed by the individual.
            (7) National forest system.--The term ``National Forest 
        System'' has the meaning given the term in section 11(a) of the 
        Forest and Rangeland Renewable Resources Planning Act of 1974 
        (16 U.S.C. 1609(a)).
            (8) Reburial site.--The term ``reburial site'' means a 
        specific physical location at which cultural items or human 
        remains are reburied.
            (9) Traditional and cultural purpose.--The term 
        ``traditional and cultural purpose'', with respect to a 
        definable use, area, or practice, means that the use, area, or 
        practice is identified by an Indian tribe as traditional or 
        cultural because of the long-established significance or 
        ceremonial nature of the use, area, or practice to the Indian 
        tribe.

SEC. 8103. REBURIAL OF HUMAN REMAINS AND CULTURAL ITEMS.

    (a) Reburial Sites.--In consultation with an affected Indian tribe 
or lineal descendant, the Secretary may authorize the use of National 
Forest System land by the Indian tribe or lineal descendant for the 
reburial of human remains or cultural items in the possession of the 
Indian tribe or lineal descendant that have been disinterred from 
National Forest System land or an adjacent site.
    (b) Reburial.--With the consent of the affected Indian tribe or 
lineal descendent, the Secretary may recover and rebury, at Federal 
expense or using other available funds, human remains and cultural 
items described in subsection (a) at the National Forest System land 
identified under that subsection.
    (c) Authorization of Use.--
            (1) In general.--Subject to paragraph (2), the Secretary 
        may authorize such uses of reburial sites on National Forest 
        System land, or on the National Forest System land immediately 
        surrounding a reburial site, as the Secretary determines to be 
        necessary for management of the National Forest System.
            (2) Avoidance of adverse impacts.--In carrying out 
        paragraph (1), the Secretary shall avoid adverse impacts to 
        cultural items and human remains, to the maximum extent 
        practicable.

SEC. 8104. TEMPORARY CLOSURE FOR TRADITIONAL AND CULTURAL PURPOSES.

    (a) Recognition of Historic Use.--To the maximum extent 
practicable, the Secretary shall ensure access to National Forest 
System land by Indians for traditional and cultural purposes, in 
accordance with subsection (b), in recognition of the historic use by 
Indians of National Forest System land.
    (b) Closing Land From Public Access.--
            (1) Authority to close.--Upon the approval by the Secretary 
        of a request from an Indian tribe, the Secretary may 
        temporarily close from public access specifically identified 
        National Forest System land to protect the privacy of tribal 
        activities for traditional and cultural purposes.
            (2) Limitation.--A closure of National Forest System land 
        under paragraph (1) shall affect the smallest practicable area 
        for the minimum period necessary for activities of the 
        applicable Indian tribe.
            (3) Consistency.--Access by Indian tribes to National 
        Forest System land under this subsection shall be consistent 
        with the purposes of Public Law 95-341 (commonly known as the 
        American Indian Religious Freedom Act; 42 U.S.C. 1996).

SEC. 8105. FOREST PRODUCTS FOR TRADITIONAL AND CULTURAL PURPOSES.

    (a) In General.--Notwithstanding section 14 of the National Forest 
Management Act of 1976 (16 U.S.C. 472a), the Secretary may provide free 
of charge to Indian tribes any trees, portions of trees, or forest 
products from National Forest System land for traditional and cultural 
purposes.
    (b) Prohibition.--Trees, portions of trees, or forest products 
provided under subsection (a) may not be used for commercial purposes.

SEC. 8106. PROHIBITION ON DISCLOSURE.

    (a) Nondisclosure of Information.--
            (1) In general.--The Secretary shall not disclose under 
        section 552 of title 5, United States Code (commonly known as 
        the ``Freedom of Information Act''), information relating to--
                    (A) subject to subsection (b)(l), human remains or 
                cultural items reburied on National Forest System land 
                under section 8103; or
                    (B) subject to subsection (b)(2), resources, 
                cultural items, uses, or activities that--
                            (i) have a traditional and cultural 
                        purpose; and
                            (ii) are provided to the Secretary by an 
                        Indian or Indian tribe under an express 
                        expectation of confidentiality in the context 
                        of forest and rangeland research activities 
                        carried out under the authority of the Forest 
                        Service.
            (2) Limitations on disclosure.--Subject to subsection 
        (b)(2), the Secretary shall not be required to disclose 
        information under section 552 of title 5, United States Code 
        (commonly known as the ``Freedom of Information Act''), 
        concerning the identity, use, or specific location in the 
        National Forest System of--
                    (A) a site or resource used for traditional and 
                cultural purposes by an Indian tribe; or
                    (B) any cultural items not covered under section 
                8103.
    (b) Limited Release of Information.--
            (1) Reburial.--The Secretary may disclose information 
        described in subsection (a)(l)(A) if, before the disclosure, 
        the Secretary--
                    (A) consults with an affected Indian tribe or 
                lineal descendent;
                    (B) determines that disclosure of the information--
                            (i) would advance the purposes of this 
                        subtitle; and
                            (ii) is necessary to protect the human 
                        remains or cultural items from harm, theft, or 
                        destruction; and
                    (C) attempts to mitigate any adverse impacts 
                identified by an Indian tribe or lineal descendant that 
                reasonably could be expected to result from disclosure 
                of the information.
            (2) Other information.--The Secretary, in consultation with 
        appropriate Indian tribes, may disclose information described 
        under paragraph (1)(B) or (2) of subsection (a) if the 
        Secretary determines that disclosure of the information to the 
        public--
                    (A) would advance the purposes of this subtitle;
                    (B) would not create an unreasonable risk of harm, 
                theft, or destruction of the resource, site, or object, 
                including individual organic or inorganic specimens; 
                and
                    (C) would be consistent with other applicable laws.

SEC. 8107. SEVERABILITY AND SAVINGS PROVISIONS.

    (a) Severability.--If any provision of this subtitle, or the 
application of any provision of this subtitle to any person or 
circumstance is held invalid, the application of such provision or 
circumstance and the remainder of this subtitle shall not be affected 
thereby.
    (b) Savings.--Nothing in this subtitle--
            (1) diminishes or expands the trust responsibility of the 
        United States to Indian tribes, or any legal obligation or 
        remedy resulting from that responsibility;
            (2) alters, abridges, repeals, or affects any valid 
        agreement between the Forest Service and an Indian tribe;
            (3) alters, abridges, diminishes, repeals, or affects any 
        reserved or other right of an Indian tribe; or
            (4) alters, abridges, diminishes, repeals, or affects any 
        other valid existing right relating to National Forest System 
        land or other public land.

         Subtitle C--Amendments to Other Forestry-Related Laws

SEC. 8201. RURAL REVITALIZATION TECHNOLOGIES.

    Section 2371(d)(2) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 6601(d)(2)) is amended by striking ``2004 
through 2008'' and inserting ``2008 through 2012''.

SEC. 8202. OFFICE OF INTERNATIONAL FORESTRY.

    Section 2405(d) of the Global Climate Change Prevention Act of 1990 
(7 U.S.C. 6704(d)) is amended by striking ``2007'' and inserting 
``2012''.

SEC. 8203. EMERGENCY FOREST RESTORATION PROGRAM.

    (a) Establishment.--Title IV of the Agricultural Credit Act of 1978 
(16 U.S.C. 2201 et seq.) is amended by adding at the end the following 
new section:

``SEC. 407. EMERGENCY FOREST RESTORATION PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Emergency measures.--The term `emergency measures' 
        means those measures that--
                    ``(A) are necessary to address damage caused by a 
                natural disaster to natural resources on nonindustrial 
                private forest land, and the damage, if not treated--
                            ``(i) would impair or endanger the natural 
                        resources on the land; and
                            ``(ii) would materially affect future use 
                        of the land; and
                    ``(B) would restore forest health and forest-
                related resources on the land.
            ``(2) Natural disaster.--The term `natural disaster' 
        includes wildfires, hurricanes or excessive winds, drought, ice 
        storms or blizzards, floods, or other resource-impacting 
        events, as determined by the Secretary.
            ``(3) Nonindustrial private forest land.--The term 
        `nonindustrial private forest land' means rural land, as 
        determined by the Secretary, that--
                    ``(A) has existing tree cover (or had tree cover 
                immediately before the natural disaster and is suitable 
                for growing trees); and
                    ``(B) is owned by any nonindustrial private 
                individual, group, association, corporation, or other 
                private legal entity, that has definitive decision-
                making authority over the land.
            ``(4) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
    ``(b) Availability of Assistance.--The Secretary may make payments 
to an owner of nonindustrial private forest land who carries out 
emergency measures to restore the land after the land is damaged by a 
natural disaster.
    ``(c) Eligibility.--To be eligible to receive a payment under 
subsection (b), an owner must demonstrate to the satisfaction of the 
Secretary that the nonindustrial private forest land on which the 
emergency measures are carried out had tree cover immediately before 
the natural disaster.
    ``(d) Cost Share Requirement.--Payments made under subsection (b) 
shall not exceed 75 percent of the total cost of the emergency measures 
carried out by an owner of nonindustrial private forest land.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such funds as may be necessary to carry 
out this section. Amounts so appropriated shall remain available until 
expended.''.
    (b) Regulations.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Agriculture shall issue 
regulations to carry out section 407 of the Agricultural Credit Act of 
1978, as added by subsection (a).

SEC. 8204. PREVENTION OF ILLEGAL LOGGING PRACTICES.

    (a) Definitions.--
            (1) Plant.--Subsection (f) of section 2 of the Lacey Act 
        Amendments of 1981 (16 U.S.C. 3371) is amended to read as 
        follows:
    ``(f) Plant.--
            ``(1) In general.--The terms `plant' and `plants' mean any 
        wild member of the plant kingdom, including roots, seeds, 
        parts, or products thereof, and including trees from either 
        natural or planted forest stands.
            ``(2) Exclusions.--The terms `plant' and `plants' exclude--
                    ``(A) common cultivars, except trees, and common 
                food crops (including roots, seeds, parts, or products 
                thereof);
                    ``(B) a scientific specimen of plant genetic 
                material (including roots, seeds, germplasm, parts, or 
                products thereof) that is to be used only for 
                laboratory or field research; and
                    ``(C) any plant that is to remain planted or to be 
                planted or replanted.
            ``(3) Exceptions to application of exclusions.--The 
        exclusions made by subparagraphs (B) and (C) of paragraph (2) 
        do not apply if the plant is listed--
                    ``(A) in an appendix to the Convention on 
                International Trade in Endangered Species of Wild Fauna 
                and Flora (27 UST 1087; TIAS 8249);
                    ``(B) as an endangered or threatened species under 
                the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
                seq.); or
                    ``(C) pursuant to any State law that provides for 
                the conservation of species that are indigenous to the 
                State and are threatened with extinction.''.
            (2) Inclusion of secretary of agriculture.--Section 2(h) of 
        the Lacey Act Amendments of 1981 (16 U.S.C. 3371(h)) is amended 
        by striking ``plants the term means'' and inserting ``plants, 
        the term also means''.
            (3) Taken and taking.--Subsection (j) of section 2 of the 
        Lacey Act Amendments of 1981 (16 U.S.C. 3371) is amended to 
        read as follows:
    ``(j) Taken and Taking.--
            ``(1) Taken.--The term `taken' means captured, killed, or 
        collected and, with respect to a plant, also means harvested, 
        cut, logged, or removed.
            ``(2) Taking.--The term `taking' means the act by which 
        fish, wildlife, or plants are taken.''.
    (b) Prohibited Acts.--
            (1) Offenses other than marking.--Section 3(a) of the Lacey 
        Act Amendments of 1981 (16 U.S.C. 3372(a)) is amended--
                    (A) in paragraph (2), by striking subparagraph (B) 
                and inserting the following new subparagraph:
                    ``(B) any plant--
                            ``(i) taken, possessed, transported, or 
                        sold in violation of any law or regulation of 
                        any State, or any foreign law, that protects 
                        plants or that regulates--
                                    ``(I) the theft of plants;
                                    ``(II) the taking of plants from a 
                                park, forest reserve, or other 
                                officially protected area;
                                    ``(III) the taking of plants from 
                                an officially designated area; or
                                    ``(IV) the taking of plants 
                                without, or contrary to, required 
                                authorization;
                            ``(ii) taken, possessed, transported, or 
                        sold without the payment of appropriate 
                        royalties, taxes, or stumpage fees required for 
                        the plant by any law or regulation of any State 
                        or any foreign law; or
                            ``(iii) taken, possessed, transported, or 
                        sold in violation of any limitation under any 
                        law or regulation of any State, or under any 
                        foreign law, governing the export or 
                        transshipment of plants; or''; and
                    (B) in paragraph (3), by striking subparagraph (B) 
                and inserting the following subparagraph:
                    ``(B) to possess any plant--
                            ``(i) taken, possessed, transported, or 
                        sold in violation of any law or regulation of 
                        any State, or any foreign law, that protects 
                        plants or that regulates--
                                    ``(I) the theft of plants;
                                    ``(II) the taking of plants from a 
                                park, forest reserve, or other 
                                officially protected area;
                                    ``(III) the taking of plants from 
                                an officially designated area; or
                                    ``(IV) the taking of plants 
                                without, or contrary to, required 
                                authorization;
                            ``(ii) taken, possessed, transported, or 
                        sold without the payment of appropriate 
                        royalties, taxes, or stumpage fees required for 
                        the plant by any law or regulation of any State 
                        or any foreign law; or
                            ``(iii) taken, possessed, transported, or 
                        sold in violation of any limitation under any 
                        law or regulation of any State, or under any 
                        foreign law, governing the export or 
                        transshipment of plants; or''.
            (2) Plant declarations.--Section 3 of the Lacey Act 
        Amendments of 1981 (16 U.S.C. 3372) is amended by adding at the 
        end the following new subsection:
    ``(f) Plant Declarations.--
            ``(1) Import declaration.--Effective 180 days from the date 
        of enactment of this subsection, and except as provided in 
        paragraph (3), it shall be unlawful for any person to import 
        any plant unless the person files upon importation a 
        declaration that contains--
                    ``(A) the scientific name of any plant (including 
                the genus and species of the plant) contained in the 
                importation;
                    ``(B) a description of--
                            ``(i) the value of the importation; and
                            ``(ii) the quantity, including the unit of 
                        measure, of the plant; and
                    ``(C) the name of the country from which the plant 
                was taken.
            ``(2) Declaration relating to plant products.--Until the 
        date on which the Secretary promulgates a regulation under 
        paragraph (6), a declaration relating to a plant product 
        shall--
                    ``(A) in the case in which the species of plant 
                used to produce the plant product that is the subject 
                of the importation varies, and the species used to 
                produce the plant product is unknown, contain the name 
                of each species of plant that may have been used to 
                produce the plant product;
                    ``(B) in the case in which the species of plant 
                used to produce the plant product that is the subject 
                of the importation is commonly taken from more than one 
                country, and the country from which the plant was taken 
                and used to produce the plant product is unknown, 
                contain the name of each country from which the plant 
                may have been taken; and
                    ``(C) in the case in which a paper or paperboard 
                plant product includes recycled plant product, contain 
                the average percent recycled content without regard for 
                the species or country of origin of the recycled plant 
                product, in addition to the information for the non-
                recycled plant content otherwise required by this 
                subsection.
            ``(3) Exclusions.--Paragraphs (1) and (2) shall not apply 
        to plants used exclusively as packaging material to support, 
        protect, or carry another item, unless the packaging material 
        itself is the item being imported.
            ``(4) Review.--Not later than two years after the date of 
        enactment of this subsection, the Secretary shall review the 
        implementation of each requirement imposed by paragraphs (1) 
        and (2) and the effect of the exclusion provided by paragraph 
        (3). In conducting the review, the Secretary shall provide 
        public notice and an opportunity for comment.
            ``(5) Report.--Not later than 180 days after the date on 
        which the Secretary completes the review under paragraph (4), 
        the Secretary shall submit to the appropriate committees of 
        Congress a report containing--
                    ``(A) an evaluation of--
                            ``(i) the effectiveness of each type of 
                        information required under paragraphs (1) and 
                        (2) in assisting enforcement of this section; 
                        and
                            ``(ii) the potential to harmonize each 
                        requirement imposed by paragraphs (1) and (2) 
                        with other applicable import regulations in 
                        existence as of the date of the report;
                    ``(B) recommendations for such legislation as the 
                Secretary determines to be appropriate to assist in the 
                identification of plants that are imported into the 
                United States in violation of this section; and
                    ``(C) an analysis of the effect of subsection (a) 
                and this subsection on--
                            ``(i) the cost of legal plant imports; and
                            ``(ii) the extent and methodology of 
                        illegal logging practices and trafficking.
            ``(6) Promulgation of regulations.--Not later than 180 days 
        after the date on which the Secretary completes the review 
        under paragraph (4), the Secretary may promulgate regulations--
                    ``(A) to limit the applicability of any requirement 
                imposed by paragraph (2) to specific plant products;
                    ``(B) to make any other necessary modification to 
                any requirement imposed by paragraph (2), as determined 
                by the Secretary based on the review; and
                    ``(C) to limit the scope of the exclusion provided 
                by paragraph (3), if the limitations in scope are 
                warranted as a result of the review.''.
    (c) Cross-References to New Requirement.--Section 4 of the Lacey 
Act Amendments of 1981 (16 U.S.C. 3373) is amended--
            (1) by striking ``subsections (b) and (d)'' each place it 
        appears and inserting ``subsections (b), (d), and (f)'';
            (2) by striking ``section 3(d)'' each place it appears and 
        inserting ``subsection (d) or (f) of section 3''; and
            (3) in subsection (a)(2), by striking ``subsection 3(b)'' 
        and inserting ``subsection (b) or (f) of section 3, except as 
        provided in paragraph (1),''.
    (d) Civil Forfeitures.--Section 5 of the Lacey Act Amendments of 
1981 (16 U.S.C. 3374) is amended by adding at the end the following new 
subsection:
    ``(d) Civil Forfeitures.--Civil forfeitures under this section 
shall be governed by the provisions of chapter 46 of title 18, United 
States Code.''.
    (e) Administration.--Section 7 of the Lacey Act Amendments of 1981 
(16 U.S.C. 3376) is amended--
            (1) in subsection (a)(1), by striking ``section 4 and 
        section'' and inserting ``sections 3(f), 4, and''; and
            (2) by adding at the end the following new subsection:
    ``(c) Clarification of Exclusions From Definition of Plant.--The 
Secretary of Agriculture and the Secretary of the Interior, after 
consultation with the appropriate agencies, shall jointly promulgate 
regulations to define the terms used in section 2(f)(2)(A) for the 
purposes of enforcement under this Act.''.
    (f) Technical Correction.--Effective as of November 14, 1988, and 
as if included therein as enacted, section 102(c) of Public Law 100-653 
(102 Stat. 3825) is amended--
            (1) by inserting ``of the Lacey Act Amendments of 1981'' 
        after ``Section 4''; and
            (2) by striking ``(other than section 3(b))'' and inserting 
        ``(other than subsection 3(b))''.

SEC. 8205. HEALTHY FORESTS RESERVE PROGRAM.

    (a) Enrollment.--Section 502 of the Healthy Forests Restoration Act 
of 2003 (16 U.S.C. 6572(f)(1)) is amended--
            (1) by striking subsections (e) and (f);
            (2) by redesignating subsection (g) as subsection (f); and
            (3) by inserting after subsection (d) the following new 
        subsection:
    ``(e) Methods of Enrollment.--
            ``(1) Authorized methods.--Land may be enrolled in the 
        healthy forests reserve program in accordance with--
                    ``(A) a 10-year cost-share agreement;
                    ``(B) a 30-year easement; or
                    ``(C)(i) a permanent easement; or
                    ``(ii) in a State that imposes a maximum duration 
                for easements, an easement for the maximum duration 
                allowed under State law.
            ``(2) Limitation on use of cost-share agreements and 
        easements.--
                    ``(A) In general.--Of the total amount of funds 
                expended under the program for a fiscal year to acquire 
                easements and enter into cost-share agreements 
                described in paragraph (1)--
                            ``(i) not more than 40 percent shall be 
                        used for cost-share agreements described in 
                        paragraph (1)(A); and
                            ``(ii) not more than 60 percent shall be 
                        used for easements described in subparagraphs 
                        (B) and (C) of paragraph (1).
                    ``(B) Repooling.--The Secretary may use any funds 
                allocated under clause (i) or (ii) of subparagraph (A) 
                that are not obligated by April 1 of the fiscal year 
                for which the funds are made available to carry out a 
                different method of enrollment during that fiscal year.
            ``(3) Acreage owned by indian tribes.--In the case of 
        acreage owned by an Indian tribe, the Secretary may enroll 
        acreage into the healthy forests reserve program through the 
        use of--
                    ``(A) a 30-year contract (the value of which shall 
                be equivalent to the value of a 30-year easement);
                    ``(B) a 10-year cost-share agreement; or
                    ``(C) any combination of the options described in 
                subparagraphs (A) and (B).''.
    (b) Financial Assistance.--Section 504(a) of the Healthy Forests 
Restoration Act of 2003 (16 U.S.C. 6574(a)) is amended by striking 
``(a) Easements of Not More Than 99 Years'' and all that follows 
through ``502(f)(1)(C)'' and inserting the following:
    ``(a) Permanent Easements.--In the case of land enrolled in the 
healthy forests reserve program using a permanent easement (or an 
easement described in section 502(f)(1)(C)(ii))''.
    (c) Funding.--Section 508 of the Healthy Forests Restoration Act of 
2003 (16 U.S.C. 6578) is amended to read as follows:

``SEC. 508. FUNDING.

    ``(a) In General.--Of the funds of the Commodity Credit 
Corporation, the Secretary of Agriculture shall make available 
$9,750,000 for each of fiscal years 2009 through 2012 to carry out this 
title.
    ``(b) Duration of Availability.--The funds made available under 
subsection (a) shall remain available until expended.''.

    Subtitle D--Boundary Adjustments and Land Conveyance Provisions

SEC. 8301. GREEN MOUNTAIN NATIONAL FOREST BOUNDARY ADJUSTMENT.

    (a) In General.--The boundary of the Green Mountain National Forest 
is modified to include the 13 designated expansion units as generally 
depicted on the forest maps entitled ``Green Mountain Expansion Area 
Map I'' and ``Green Mountain Expansion Area Map II'' and dated February 
20, 2002 (copies of which shall be on file and available for public 
inspection in the Office of the Chief of the Forest Service, 
Washington, District of Columbia), and more particularly described 
according to the site specific maps and legal descriptions on file in 
the office of the Forest Supervisor, Green Mountain National Forest.
    (b) Management.--Federally owned land delineated on the maps 
acquired for National Forest purposes shall continue to be managed in 
accordance with the laws (including regulations) applicable to the 
National Forest System.
    (c) Land and Water Conservation Fund.--For the purposes of section 
7 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460 l-
9), the boundaries of the Green Mountain National Forest, as adjusted 
by this section, shall be considered to be the boundaries of the 
national forest as of January 1, 1965.

SEC. 8302. LAND CONVEYANCES, CHIHUAHUAN DESERT NATURE PARK, NEW MEXICO, 
              AND GEORGE WASHINGTON NATIONAL FOREST, VIRGINIA.

    (a) Chihuahuan Desert Nature Park Conveyance.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, subject to valid existing rights and 
        subsection (b), the Secretary of Agriculture shall convey to 
        the Chihuahuan Desert Nature Park, Inc., a nonprofit 
        corporation in the State of New Mexico (in this section 
        referred to as the ``Nature Park''), by quitclaim deed and for 
        no consideration, all right, title, and interest of the United 
        States in and to the land described in paragraph (2)
            (2) Description of land.--
                    (A) In general.--The parcel of land referred to in 
                paragraph (1) consists of the approximately 935.62 
                acres of land in Dona Ana County, New Mexico, which is 
                more particularly described--
                            (i) as sections 17, 20, and 21 of T. 21 S., 
                        R. 2 E., N.M.P.M.; and
                            (ii) in an easement deed dated May 14, 
                        1998, from the Department of Agriculture to the 
                        Nature Park.
                    (B) Modifications.--The Secretary may modify the 
                description of the land under subparagraph (A) to--
                            (i) correct errors in the description; or
                            (ii) facilitate management of the land.
    (b) Conditions.--The conveyance of land under subsection (a) shall 
be subject to--
            (1) the reservation by the United States of all mineral and 
        subsurface rights to the land, including any geothermal 
        resources;
            (2) the condition that the Chihuahuan Desert Nature Park 
        Board pay any costs relating to the conveyance;
            (3) any rights-of-way reserved by the Secretary;
            (4) a covenant or restriction in the deed to the land 
        requiring that--
                    (A) the land may be used only for educational or 
                scientific purposes; and
                    (B) if the land is no longer used for the purposes 
                described in subparagraph (A), the land may, at the 
                discretion of the Secretary, revert to the United 
                States in accordance with subsection (c); and
            (5) any other terms and conditions that the Secretary 
        determines to be appropriate.
    (c) Reversion.--If the land conveyed under subsection (a) is no 
longer used for the purposes described in subsection (b)(4)(A), the 
land may, at the discretion of the Secretary, revert to the United 
States. If the Secretary chooses to have the land revert to the United 
States, the Secretary shall--
            (1) determine whether the land is environmentally 
        contaminated, including contamination from hazardous wastes, 
        hazardous substances, pollutants, contaminants, petroleum, or 
        petroleum by-products; and
            (2) if the Secretary determines that the land is 
        environmentally contaminated, the Nature Park, the successor to 
        the Nature Park, or any other person responsible for the 
        contamination shall be required to remediate the contamination.
    (d) Withdrawal.--All federally owned mineral and subsurface rights 
to the land to be conveyed under subsection (a) are withdrawn from--
            (1) location, entry, and patent under the mining laws; and
            (2) the operation of the mineral leasing laws, including 
        the geothermal leasing laws.
    (e) Water Rights.--Nothing in subsection (a) authorizes the 
conveyance of water rights to the Nature Park.
    (f) George Washington National Forest Conveyance, Virginia.--
            (1) Conveyance required.--The Secretary of Agriculture 
        shall convey, without consideration, to the Central Advent 
        Christian Church of Alleghany County, Virginia (in this 
        subsection referred to as the ``recipient''), all right, title, 
        and interest of the United States in and to a parcel of real 
        property in the George Washington National Forest, Alleghany 
        County, Virginia, consisting of not more than 8 acres, 
        including a cemetery encompassing approximately 6 acres 
        designated as an area of special use for the recipient, and 
        depicted on the Forest Service map showing tract G-2032c and 
        dated August 20, 2002, and the Forest Service map showing the 
        area of special use and dated March 14, 2001.
            (2) Condition of conveyance.--The conveyance under this 
        subsection shall be subject to the condition that the recipient 
        accept the real property described in paragraph (1) in its 
        condition at the time of the conveyance, commonly known as 
        conveyance ``as is''.
            (3) Description of property.--The exact acreage and legal 
        description of the real property to be conveyed under this 
        subsection shall be determined by a survey satisfactory to the 
        Secretary. The cost of the survey shall be borne by the 
        recipient.
            (4) Additional terms and conditions.--The Secretary may 
        require such additional terms and conditions in connection with 
        the conveyance under this subsection as the Secretary considers 
        appropriate to protect the interests of the United States.

SEC. 8303. SALE AND EXCHANGE OF NATIONAL FOREST SYSTEM LAND, VERMONT.

    (a) Definitions.--In this section:
            (1) Bromley.--The term ``Bromley'' means Bromley Mountain 
        Ski Resort, Inc.
            (2) Map.--The term ``map'' means the map entitled 
        ``Proposed Bromley Land Sale or Exchange'' and dated April 7, 
        2004.
            (3) State.--The term ``State'' means the State of Vermont.
    (b) Sale or Exchange of Green Mountain National Forest Land.--
            (1) In general.--The Secretary of Agriculture may, under 
        any terms and conditions that the Secretary may prescribe, sell 
        or exchange any right, title, and interest of the United States 
        in and to the parcels of National Forest System land described 
        in paragraph (2).
            (2) Description of land.--The parcels of National Forest 
        System land referred to in paragraph (1) are the 5 parcels of 
        land in Bennington County in the State, as generally depicted 
        on the map.
            (3) Map and legal descriptions.--
                    (A) In general.--The map shall be on file and 
                available for public inspection in--
                            (i) the office of the Chief of the Forest 
                        Service; and
                            (ii) the office of the Supervisor of the 
                        Green Mountain National Forest.
                    (B) Modifications.--The Secretary may modify the 
                map and legal descriptions to--
                            (i) correct technical errors; or
                            (ii) facilitate the conveyance under 
                        paragraph (1).
            (4) Consideration.--Consideration for the sale or exchange 
        of land described in paragraph (2)--
                    (A) shall be equal to an amount that is not less 
                than the fair market value of the land sold or 
                exchanged; and
                    (B) may be in the form of cash, land, or a 
                combination of cash and land.
            (5) Appraisals.--Any appraisal carried out to facilitate 
        the sale or exchange of land under paragraph (1) shall conform 
        with the Uniform Appraisal Standards for Federal Land 
        Acquisitions.
            (6) Methods of sale.--
                    (A) Conveyance to bromley.--
                            (i) In general.--Before soliciting offers 
                        under subparagraph (B), the Secretary shall 
                        offer to convey to Bromley the land described 
                        in paragraph (2).
                            (ii) Contract deadline.--If Bromley accepts 
                        the offer under clause (i), the Secretary and 
                        Bromley shall have not more than 180 days after 
                        the date on which any environmental analyses 
                        with respect to the land are completed to enter 
                        into a contract for the sale or exchange of the 
                        land.
                    (B) Public or private sale.--If the Secretary and 
                Bromley do not enter into a contract for the sale or 
                exchange of the land by the date specified in 
                subparagraph (A)(ii), the Secretary may sell or 
                exchange the land at public or private sale (including 
                auction), in accordance with such terms, conditions, 
                and procedures as the Secretary determines to be in the 
                public interest.
                    (C) Rejection of offers.--The Secretary may reject 
                any offer received under this paragraph if the 
                Secretary determines that the offer is not adequate or 
                is not in the public interest.
                    (D) Brokers.--In any sale or exchange of land under 
                this subsection, the Secretary may--
                            (i) use a real estate broker or other third 
                        party; and
                            (ii) pay the real estate broker or third 
                        party a commission in an amount comparable to 
                        the amounts of commission generally paid for 
                        real estate transactions in the area.
            (7) Cash equalization.--Notwithstanding section 206(b) of 
        the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
        1716(b)), the Secretary may accept a cash equalization payment 
        in excess of 25 percent of the value of any Federal land 
        exchanged under this section.
    (c) Disposition of Proceeds.--
            (1) In general.--The Secretary shall deposit the net 
        proceeds from a sale or exchange under this section in the fund 
        established under Public Law 90-171 (16 U.S.C. 484a) (commonly 
        known as the ``Sisk Act'').
            (2) Use.--Amounts deposited under paragraph (1) shall be 
        available to the Secretary until expended, without further 
        appropriation, for--
                    (A) the location and relocation of the Appalachian 
                National Scenic Trail and the Long National Recreation 
                Trail in the State;
                    (B) the acquisition of land and interests in land 
                by the Secretary for National Forest System purposes 
                within the boundary of the Green Mountain National 
                Forest, including land for and adjacent to the 
                Appalachian National Scenic Trail and the Long National 
                Recreation Trail;
                    (C) the acquisition of wetland or an interest in 
                wetland within the boundary of the Green Mountain 
                National Forest to offset the loss of wetland from the 
                parcels sold or exchanged; and
                    (D) the payment of direct administrative costs 
                incurred in carrying out this section.
            (3) Limitation.--Amounts deposited under paragraph (1) 
        shall not--
                    (A) be paid or distributed to the State or counties 
                or towns in the State under any provision of law; or
                    (B) be considered to be money received from units 
                of the National Forest System for purposes of--
                            (i) the Act of May 23, 1908 (16 U.S.C. 
                        500); or
                            (ii) the Act of March 4, 1913 (16 U.S.C. 
                        501).
            (4) Prohibition of transfer or reprogramming.--Amounts 
        deposited under paragraph (1) shall not be subject to transfer 
        or reprogramming for wildfire management or any other emergency 
        purposes.
    (d) Acquisition of Land.--The Secretary may acquire, using funds 
made available under subsection (c) or otherwise made available for 
acquisition, land or an interest in land for National Forest System 
purposes within the boundary of the Green Mountain National Forest.
    (e) Exemption From Certain Laws.--Subtitle I of title 40, United 
States Code, shall not apply to any sale or exchange of National Forest 
System land under this section.

                  Subtitle E--Miscellaneous Provisions

SEC. 8401. QUALIFYING TIMBER CONTRACT OPTIONS.

    (a) Definitions.--In this section:
            (1) Authorized producer price index.--The term ``authorized 
        Producer Price Index'' includes--
                    (A) the softwood commodity index (code number WPU 
                0811);
                    (B) the hardwood commodity index (code number WPU 
                0812);
                    (C) the wood chip index (code number PCU 
                3211133211135); and
                    (D) any other subsequent comparable index, as 
                established by the Bureau of Labor Statistics of the 
                Department of Labor and utilized by the Secretary of 
                Agriculture.
            (2) Qualifying contract.--The term ``qualifying contract'' 
        means a contract for the sale of timber on National Forest 
        System land--
                    (A) that was awarded during the period beginning on 
                July 1, 2004, and ending on December 31, 2006;
                    (B) for which there is unharvested volume 
                remaining;
                    (C) for which, not later than 90 days after the 
                date of enactment of this Act, the timber purchaser 
                makes a written request to the Secretary for one or 
                more of the options described in subsection (b);
                    (D) that is not a salvage sale;
                    (E) for which the Secretary determines there is not 
                an urgent need to harvest due to deteriorating timber 
                conditions that developed after the award of the 
                contract; and
                    (F) that is not in breach or in default.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture, acting through the Chief of the Forest Service.
    (b) Options for Qualifying Contracts.--
            (1) Cancellation or rate redetermination.--Notwithstanding 
        any other provision of law, if the rate at which a qualifying 
        contract would be advertised as of the date of enactment of 
        this Act is at least 50 percent less than the sum of the 
        original bid rates for all of the species of timber that are 
        the subject of the qualifying contract, the Secretary may, at 
        the sole discretion of the Secretary--
                    (A) cancel the qualifying contract if the timber 
                purchaser--
                            (i) pays 30 percent of the total value of 
                        the timber remaining in the qualifying contract 
                        based on bid rates;
                            (ii) completes each contractual obligation 
                        (including the removal of downed timber, the 
                        completion of road work, and the completion of 
                        erosion control work) of the timber purchaser 
                        with respect to each unit on which harvest has 
                        begun to a logical stopping point, as 
                        determined by the Secretary after consultation 
                        with the timber purchaser; and
                            (iii) terminates its rights under the 
                        qualifying contract; or
                    (B) modify the qualifying contract to redetermine 
                the current contract rate of the qualifying contract to 
                equal the sum obtained by adding--
                            (i) 25 percent of the bid premium on the 
                        qualifying contract; and
                            (ii) the rate at which the qualifying 
                        contract would be advertised as of the date of 
                        enactment of this Act.
            (2) Substitution of index.--
                    (A) Substitution.--Notwithstanding any other 
                provision of law, the Secretary may, at the sole 
                discretion of the Secretary, substitute the Producer 
                Price Index specified in the qualifying contract of a 
                timber purchaser if the timber purchaser identifies--
                            (i) the products the timber purchaser 
                        intends to produce from the timber harvested 
                        under the qualifying contract; and
                            (ii) a substitute index from an authorized 
                        Producer Price Index that more accurately 
                        represents the predominant product identified 
                        in clause (i) for which there is an index.
                    (B) Rate redetermination following substitution of 
                index.--If the Secretary substitutes the Producer Price 
                Index of a qualifying contract under subparagraph (A), 
                the Secretary may, at the sole discretion of the 
                Secretary, modify the qualifying contract to provide 
                for--
                            (i) an emergency rate redetermination under 
                        the terms of the contract; or
                            (ii) a rate redetermination under paragraph 
                        (1)(B).
                    (C) Limitation on market-related contract term 
                addition; periodic payments.--Notwithstanding any other 
                provision of law, if the Secretary substitutes the 
                Producer Price Index of a qualifying contract under 
                subparagraph (A), the Secretary may, at the sole 
                discretion of the Secretary, modify the qualifying 
                contract--
                            (i) to adjust the term in accordance with 
                        the market-related contract term addition 
                        provision in the qualifying contract and 
                        section 223.52 of title 36, Code of Federal 
                        Regulations, as in effect on the date of the 
                        adjustment, but only if the drastic reduction 
                        criteria in such section are met for 2 or more 
                        consecutive calendar year quarters beginning 
                        with the calendar quarter in which the 
                        Secretary substitutes the Producer Price Index 
                        under subparagraph (A); and
                            (ii) to adjust the periodic payments 
                        required under the contract in accordance with 
                        applicable law and policies.
            (3) Contracts using hardwood lumber index.--With respect to 
        a qualifying contract using the hardwood commodity index 
        referred to in subsection (a)(1)(B) for which the Secretary 
        does not substitute the Producer Price Index under paragraph 
        (2), the Secretary may, at the sole discretion of the 
        Secretary--
                    (A) extend the contract term for a 1-year period 
                beginning on the current contract termination date; and
                    (B) adjust the periodic payments required under the 
                contract in accordance with applicable law and 
                policies.
    (c) Extension of Market-Related Contract Term Addition Time Limit 
for Certain Contracts.--Notwithstanding any other provision of law, 
upon the written request of a timber purchaser, the Secretary may, at 
the sole discretion of the Secretary, modify a timber sale contract 
(including a qualifying contract) awarded to the purchaser before 
January 1, 2007, to adjust the term of the contract in accordance with 
the market-related contract term addition provision in the contract and 
section 223.52 of title 36, Code of Federal Regulations, as in effect 
on the date of the modification, except that the Secretary may add no 
more than 4 years to the original contract length.
    (d) Effect of Options.--
            (1) No surrender of claims.--Operation of this section 
        shall not have the effect of surrendering any claim by the 
        United States against any timber purchaser that arose--
                    (A) under a qualifying contract before the date on 
                which the Secretary cancels the contract or 
                redetermines the rate under subsection (b)(1), 
                substitutes a Producer Price Index under subsection 
                (b)(2), or modifies the contract under subsection 
                (b)(3); or
                    (B) under a timber sale contract, including a 
                qualifying contract, before the date on which the 
                Secretary adjusts the contract term under subsection 
                (c).
            (2) Release of liability.--In the written request for any 
        option provided under subsections (b) and (c), a timber 
        purchaser shall release the United States from all liability, 
        including further consideration or compensation, resulting 
        from--
                    (A) the cancellation of a qualifying contract of 
                the purchaser or rate redetermination under subsection 
                (b)(1), the substitution of a Producer Price Index 
                under subsection (b)(2), the modification of the 
                contract under subsection (b)(3) or a determination by 
                the Secretary not to provide the cancellation, 
                redetermination, substitution, or modification; or
                    (B) the modification of the term of a timber sale 
                contract (including a qualifying contract) of the 
                purchaser under subsection (c) or a determination by 
                the Secretary not to provide the modification.
            (3) Limitation.--Subject to subsection (b)(1)(A), the 
        cancellation of a qualifying contract by the Secretary under 
        subsection (b)(1) shall release the timber purchaser from 
        further obligation under the canceled contract.

SEC. 8402. HISPANIC-SERVING INSTITUTION AGRICULTURAL LAND NATIONAL 
              RESOURCES LEADERSHIP PROGRAM.

    (a) Definition of Hispanic-Serving Institution.--In this section, 
the term ``Hispanic-serving institution'' has the meaning given that 
term in section 502(a)(5) of the Higher Education Act of 1965 (20 
U.S.C. 1101a(a)(5)).
    (b) Grant Authority.--The Secretary of Agriculture may make grants, 
on a competitive basis, to Hispanic-serving institutions for the 
purpose of establishing an undergraduate scholarship program to assist 
in the recruitment, retention, and training of Hispanics and other 
under-represented groups in forestry and related fields.
    (c) Use of Grant Funds.--Grants made under this section shall be 
used to recruit, retain, train, and develop professionals to work in 
forestry and related fields with Federal agencies, such as the Forest 
Service, State agencies, and private-sector entities.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for each of fiscal years 2008 through 
2012 such sums as may be necessary to carry out this section.

                            TITLE IX--ENERGY

SEC. 9001. ENERGY.

    (a) In General.--Title IX of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 8101 et seq.) is amended to read as follows:

                           ``TITLE IX--ENERGY

``SEC. 9001. DEFINITIONS.

    ``Except as otherwise provided, in this title:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Environmental Protection Agency.
            ``(2) Advisory committee.--The term `Advisory Committee' 
        means the Biomass Research and Development Technical Advisory 
        Committee established by section 9008(d)(1).
            ``(3) Advanced biofuel.--
                    ``(A) In general.--The term `advanced biofuel' 
                means fuel derived from renewable biomass other than 
                corn kernel starch.
                    ``(B) Inclusions.--Subject to subparagraph (A), the 
                term `advanced biofuel' includes--
                            ``(i) biofuel derived from cellulose, 
                        hemicellulose, or lignin;
                            ``(ii) biofuel derived from sugar and 
                        starch (other than ethanol derived from corn 
                        kernel starch);
                            ``(iii) biofuel derived from waste 
                        material, including crop residue, other 
                        vegetative waste material, animal waste, food 
                        waste, and yard waste;
                            ``(iv) diesel-equivalent fuel derived from 
                        renewable biomass, including vegetable oil and 
                        animal fat;
                            ``(v) biogas (including landfill gas and 
                        sewage waste treatment gas) produced through 
                        the conversion of organic matter from renewable 
                        biomass;
                            ``(vi) butanol or other alcohols produced 
                        through the conversion of organic matter from 
                        renewable biomass; and
                            ``(vii) other fuel derived from cellulosic 
                        biomass.
            ``(4) Biobased product.--The term `biobased product' means 
        a product determined by the Secretary to be a commercial or 
        industrial product (other than food or feed) that is--
                    ``(A) composed, in whole or in significant part, of 
                biological products, including renewable domestic 
                agricultural materials and forestry materials; or
                    ``(B) an intermediate ingredient or feedstock.
            ``(5) Biofuel.--The term `biofuel' means a fuel derived 
        from renewable biomass.
            ``(6) Biomass conversion facility.--The term `biomass 
        conversion facility' means a facility that converts or proposes 
        to convert renewable biomass into--
                    ``(A) heat;
                    ``(B) power;
                    ``(C) biobased products; or
                    ``(D) advanced biofuels.
            ``(7) Biorefinery.--The term `biorefinery' means a facility 
        (including equipment and processes) that--
                    ``(A) converts renewable biomass into biofuels and 
                biobased products; and
                    ``(B) may produce electricity.
            ``(8) Board.--The term `Board' means the Biomass Research 
        and Development Board established by section 9008(c).
            ``(9) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            ``(10) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 102(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1002(a)).
            ``(11) Intermediate ingredient or feedstock.--The term 
        `intermediate ingredient or feedstock' means a material or 
        compound made in whole or in significant part from biological 
        products, including renewable agricultural materials (including 
        plant, animal, and marine materials) or forestry materials, 
        that are subsequently used to make a more complex compound or 
        product.
            ``(12) Renewable biomass.--The term `renewable biomass' 
        means--
                    ``(A) materials, pre-commercial thinnings, or 
                invasive species from National Forest System land and 
                public lands (as defined in section 103 of the Federal 
                Land Policy and Management Act of 1976 (43 U.S.C. 
                1702)) that--
                            ``(i) are byproducts of preventive 
                        treatments that are removed--
                                    ``(I) to reduce hazardous fuels;
                                    ``(II) to reduce or contain disease 
                                or insect infestation; or
                                    ``(III) to restore ecosystem 
                                health;
                            ``(ii) would not otherwise be used for 
                        higher-value products; and
                            ``(iii) are harvested in accordance with--
                                    ``(I) applicable law and land 
                                management plans; and
                                    ``(II) the requirements for--
                                            ``(aa) old-growth 
                                        maintenance, restoration, and 
                                        management direction of 
                                        paragraphs (2), (3), and (4) of 
                                        subsection (e) of section 102 
                                        of the Healthy Forests 
                                        Restoration Act of 2003 (16 
                                        U.S.C. 6512); and
                                            ``(bb) large-tree retention 
                                        of subsection (f) of that 
                                        section; or
                    ``(B) any organic matter that is available on a 
                renewable or recurring basis from non-Federal land or 
                land belonging to an Indian or Indian tribe that is 
                held in trust by the United States or subject to a 
                restriction against alienation imposed by the United 
                States, including--
                            ``(i) renewable plant material, including--
                                    ``(I) feed grains;
                                    ``(II) other agricultural 
                                commodities;
                                    ``(III) other plants and trees; and
                                    ``(IV) algae; and
                            ``(ii) waste material, including--
                                    ``(I) crop residue;
                                    ``(II) other vegetative waste 
                                material (including wood waste and wood 
                                residues);
                                    ``(III) animal waste and byproducts 
                                (including fats, oils, greases, and 
                                manure); and
                                    ``(IV) food waste and yard waste.
            ``(13) Renewable energy.--The term `renewable energy' means 
        energy derived from--
                    ``(A) a wind, solar, renewable biomass, ocean 
                (including tidal, wave, current, and thermal), 
                geothermal, or hydroelectric source; or
                    ``(B) hydrogen derived from renewable biomass or 
                water using an energy source described in subparagraph 
                (A).
            ``(14) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.

``SEC. 9002. BIOBASED MARKETS PROGRAM.

    ``(a) Federal Procurement of Biobased Products.--
            ``(1) Definition of procuring agency.--In this subsection, 
        the term `procuring agency' means--
                    ``(A) any Federal agency that is using Federal 
                funds for procurement; or
                    ``(B) a person that is a party to a contract with 
                any Federal agency, with respect to work performed 
                under such a contract.
            ``(2) Procurement preference.--
                    ``(A) In general.--
                            ``(i) Procuring agency duties.--Except as 
                        provided in clause (ii) and subparagraph (B), 
                        after the date specified in applicable 
                        guidelines prepared pursuant to paragraph (3), 
                        each procuring agency shall--
                                    ``(I) establish a procurement 
                                program, develop procurement 
                                specifications, and procure biobased 
                                products identified under the 
                                guidelines described in paragraph (3) 
                                in accordance with this section; and
                                    ``(II) with respect to items 
                                described in the guidelines, give a 
                                procurement preference to those items 
                                that--
                                            ``(aa) are composed of the 
                                        highest percentage of biobased 
                                        products practicable; or
                                            ``(bb) comply with the 
                                        regulations issued under 
                                        section 103 of Public Law 100-
                                        556 (42 U.S.C. 6914b-1).
                            ``(ii) Exception.--The requirements of 
                        clause (i)(I) to establish a procurement 
                        program and develop procurement specifications 
                        shall not apply to a person described in 
                        paragraph (1)(B).
                    ``(B) Flexibility.--Notwithstanding subparagraph 
                (A), a procuring agency may decide not to procure items 
                described in that subparagraph if the procuring agency 
                determines that the items--
                            ``(i) are not reasonably available within a 
                        reasonable period of time;
                            ``(ii) fail to meet--
                                    ``(I) the performance standards set 
                                forth in the applicable specifications; 
                                or
                                    ``(II) the reasonable performance 
                                standards of the procuring agencies; or
                            ``(iii) are available only at an 
                        unreasonable price.
                    ``(C) Minimum requirements.--Each procurement 
                program required under this subsection shall, at a 
                minimum--
                            ``(i) be consistent with applicable 
                        provisions of Federal procurement law;
                            ``(ii) ensure that items composed of 
                        biobased products will be purchased to the 
                        maximum extent practicable;
                            ``(iii) include a component to promote the 
                        procurement program;
                            ``(iv) provide for an annual review and 
                        monitoring of the effectiveness of the 
                        procurement program; and
                            ``(v) adopt 1 of the 2 polices described in 
                        subparagraph (D) or (E), or a policy 
                        substantially equivalent to either of those 
                        policies.
                    ``(D) Case-by-case policy.--
                            ``(i) In general.--Subject to subparagraph 
                        (B) and except as provided in clause (ii), a 
                        procuring agency adopting the case-by-case 
                        policy shall award a contract to the vendor 
                        offering an item composed of the highest 
                        percentage of biobased products practicable.
                            ``(ii) Exception.--Subject to subparagraph 
                        (B), an agency adopting the policy described in 
                        clause (i) may make an award to a vendor 
                        offering items with less than the maximum 
                        biobased products content.
                    ``(E) Minimum content standards.--Subject to 
                subparagraph (B), a procuring agency adopting the 
                minimum content standards policy shall establish 
                minimum biobased products content specifications for 
                awarding contracts in a manner that ensures that the 
                biobased products content required is consistent with 
                this subsection.
                    ``(F) Certification.--After the date specified in 
                any applicable guidelines prepared pursuant to 
                paragraph (3), contracting offices shall require that 
                vendors certify that the biobased products to be used 
                in the performance of the contract will comply with the 
                applicable specifications or other contractual 
                requirements.
            ``(3) Guidelines.--
                    ``(A) In general.--The Secretary, after 
                consultation with the Administrator, the Administrator 
                of General Services, and the Secretary of Commerce 
                (acting through the Director of the National Institute 
                of Standards and Technology), shall prepare, and from 
                time to time revise, guidelines for the use of 
                procuring agencies in complying with the requirements 
                of this subsection.
                    ``(B) Requirements.--The guidelines under this 
                paragraph shall--
                            ``(i) designate those items (including 
                        finished products) that are or can be produced 
                        with biobased products (including biobased 
                        products for which there is only a single 
                        product or manufacturer in the category) that 
                        will be subject to the preference described in 
                        paragraph (2);
                            ``(ii) designate those intermediate 
                        ingredients and feedstocks that are or can be 
                        used to produce items that will be subject to 
                        the preference described in paragraph (2);
                            ``(iii) automatically designate items 
                        composed of intermediate ingredients and 
                        feedstocks designated under clause (ii), if the 
                        content of the designated intermediate 
                        ingredients and feedstocks exceeds 50 percent 
                        of the item (unless the Secretary determines a 
                        different composition percentage is 
                        appropriate);
                            ``(iv) set forth recommended practices with 
                        respect to the procurement of biobased products 
                        and items containing such materials;
                            ``(v) provide information as to the 
                        availability, relative price, performance, and 
                        environmental and public health benefits of 
                        such materials and items; and
                            ``(vi) take effect on the date established 
                        in the guidelines, which may not exceed 1 year 
                        after publication.
                    ``(C) Information provided.--Information provided 
                pursuant to subparagraph (B)(v) with respect to a 
                material or item shall be considered to be provided for 
                another item made with the same material or item.
                    ``(D) Prohibition.--Guidelines issued under this 
                paragraph may not require a manufacturer or vendor of 
                biobased products, as a condition of the purchase of 
                biobased products from the manufacturer or vendor, to 
                provide to procuring agencies more data than would be 
                required to be provided by other manufacturers or 
                vendors offering products for sale to a procuring 
                agency, other than data confirming the biobased content 
                of a product.
                    ``(E) Qualifying purchases.--The guidelines shall 
                apply with respect to any purchase or acquisition of a 
                procurement item for which--
                            ``(i) the purchase price of the item 
                        exceeds $10,000; or
                            ``(ii) the quantity of the items or of 
                        functionally-equivalent items purchased or 
                        acquired during the preceding fiscal year was 
                        at least $10,000.
            ``(4) Administration.--
                    ``(A) Office of federal procurement policy.--The 
                Office of Federal Procurement Policy, in cooperation 
                with the Secretary, shall--
                            ``(i) coordinate the implementation of this 
                        subsection with other policies for Federal 
                        procurement;
                            ``(ii) annually collect the information 
                        required to be reported under subparagraph (B) 
                        and make the information publicly available;
                            ``(iii) take a leading role in informing 
                        Federal agencies concerning, and promoting the 
                        adoption of and compliance with, procurement 
                        requirements for biobased products by Federal 
                        agencies; and
                            ``(iv) not less than once every 2 years, 
                        submit to Congress a report that--
                                    ``(I) describes the progress made 
                                in carrying out this subsection; and
                                    ``(II) contains a summary of the 
                                information reported pursuant to 
                                subparagraph (B).
                    ``(B) Other agencies.--To assist the Office of 
                Federal Procurement Policy in carrying out subparagraph 
                (A)--
                            ``(i) each procuring agency shall submit 
                        each year to the Office of Federal Procurement 
                        Policy, to the maximum extent practicable, 
                        information concerning--
                                    ``(I) actions taken to implement 
                                paragraph (2);
                                    ``(II) the results of the annual 
                                review and monitoring program 
                                established under paragraph (2)(C)(iv);
                                    ``(III) the number and dollar value 
                                of contracts entered into during the 
                                year that include the direct 
                                procurement of biobased products;
                                    ``(IV) the number of service and 
                                construction (including renovations) 
                                contracts entered into during the year 
                                that include language on the use of 
                                biobased products; and
                                    ``(V) the types and dollar value of 
                                biobased products actually used by 
                                contractors in carrying out service and 
                                construction (including renovations) 
                                contracts during the previous year; and
                            ``(ii) the General Services Administration 
                        and the Defense Logistics Agency shall submit 
                        each year to the Office of Federal Procurement 
                        Policy information concerning, to the maximum 
                        extent practicable, the types and dollar value 
                        of biobased products purchased by procuring 
                        agencies.
                    ``(C) Procurement subject to other law.--Any 
                procurement by any Federal agency that is subject to 
                regulations of the Administrator under section 6002 of 
                the Solid Waste Disposal Act (42 U.S.C. 6962) shall not 
                be subject to the requirements of this section to the 
                extent that the requirements are inconsistent with the 
                regulations.
    ``(b) Labeling.--
            ``(1) In general.--The Secretary, in consultation with the 
        Administrator, shall establish a voluntary program under which 
        the Secretary authorizes producers of biobased products to use 
        the label `USDA Certified Biobased Product'.
            ``(2) Eligibility criteria.--
                    ``(A) Criteria.--
                            ``(i) In general.--Not later than 90 days 
                        after the date of the enactment of the Food, 
                        Conservation, and Energy Act of 2008 and except 
                        as provided in clause (ii), the Secretary, in 
                        consultation with the Administrator and 
                        representatives from small and large 
                        businesses, academia, other Federal agencies, 
                        and such other persons as the Secretary 
                        considers appropriate, shall issue criteria (as 
                        of the date of enactment of that Act) for 
                        determining which products may qualify to 
                        receive the label under paragraph (1).
                            ``(ii) Exception.--Clause (i) shall not 
                        apply to final criteria that have been issued 
                        (as of the date of enactment of that Act) by 
                        the Secretary.
                    ``(B) Requirements.--Criteria issued under 
                subparagraph (A) shall--
                            ``(i) encourage the purchase of products 
                        with the maximum biobased content;
                            ``(ii) provide that the Secretary may 
                        designate as biobased for the purposes of the 
                        voluntary program established under this 
                        subsection finished products that contain 
                        significant portions of biobased materials or 
                        components; and
                            ``(iii) to the maximum extent practicable, 
                        be consistent with the guidelines issued under 
                        subsection (a)(3).
            ``(3) Use of label.--The Secretary shall ensure that the 
        label referred to in paragraph (1) is used only on products 
        that meet the criteria issued pursuant to paragraph (2).
    ``(c) Recognition.--The Secretary shall--
            ``(1) establish a program to recognize Federal agencies and 
        private entities that use a substantial amount of biobased 
        products; and
            ``(2) encourage Federal agencies to establish incentives 
        programs to recognize Federal employees or contractors that 
        make exceptional contributions to the expanded use of biobased 
        products.
    ``(d) Limitation.--Nothing in this section shall apply to the 
procurement of motor vehicle fuels, heating oil, or electricity.
    ``(e) Inclusion.--Effective beginning on the date that is 90 days 
after the date of enactment of the Food, Conservation, and Energy Act 
of 2008, the Architect of the Capitol, the Sergeant at Arms of the 
Senate, and the Chief Administrative Officer of the House of 
Representatives shall consider the biobased product designations made 
under this section in making procurement decisions for the Capitol 
Complex.
    ``(f) National Testing Center Registry.--The Secretary shall 
establish a national registry of testing centers for biobased products 
that will serve biobased product manufacturers.
    ``(g) Reports.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of the Food, Conservation, and Energy Act of 2008 
        and each year thereafter, the Secretary shall submit to 
        Congress a report on the implementation of this section.
            ``(2) Contents.--The report shall include--
                    ``(A) a comprehensive management plan that 
                establishes tasks, milestones, and timelines, 
                organizational roles and responsibilities, and funding 
                allocations for fully implementing this section; and
                    ``(B) information on the status of implementation 
                of--
                            ``(i) item designations (including 
                        designation of intermediate ingredients and 
                        feedstocks); and
                            ``(ii) the voluntary labeling program 
                        established under subsection (b).
    ``(h) Funding.--
            ``(1) Mandatory funding.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall use to provide 
        mandatory funding for biobased products testing and labeling as 
        required to carry out this section--
                    ``(A) $1,000,000 for fiscal year 2008; and
                    ``(B) $2,000,000 for each of fiscal years 2009 
                through 2012.
            ``(2) Discretionary funding.--In addition to any other 
        funds made available to carry out this section, there is 
        authorized to be appropriated to carry out this section 
        $2,000,000 for each of fiscal years 2009 through 2012.

``SEC. 9003. BIOREFINERY ASSISTANCE.

    ``(a) Purpose.--The purpose of this section is to assist in the 
development of new and emerging technologies for the development of 
advanced biofuels, so as to--
            ``(1) increase the energy independence of the United 
        States;
            ``(2) promote resource conservation, public health, and the 
        environment;
            ``(3) diversify markets for agricultural and forestry 
        products and agriculture waste material; and
            ``(4) create jobs and enhance the economic development of 
        the rural economy.
    ``(b) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' means an 
        individual, entity, Indian tribe, or unit of State or local 
        government, including a corporation, farm cooperative, farmer 
        cooperative organization, association of agricultural 
        producers, National Laboratory, institution of higher 
        education, rural electric cooperative, public power entity, or 
        consortium of any of those entities.
            ``(2) Eligible technology.--The term `eligible technology' 
        means, as determined by the Secretary--
                    ``(A) a technology that is being adopted in a 
                viable commercial-scale operation of a biorefinery that 
                produces an advanced biofuel; and
                    ``(B) a technology not described in subparagraph 
                (A) that has been demonstrated to have technical and 
                economic potential for commercial application in a 
                biorefinery that produces an advanced biofuel.
    ``(c) Assistance.--The Secretary shall make available to eligible 
entities--
            ``(1) grants to assist in paying the costs of the 
        development and construction of demonstration-scale 
        biorefineries to demonstrate the commercial viability of 1 or 
        more processes for converting renewable biomass to advanced 
        biofuels; and
            ``(2) guarantees for loans made to fund the development, 
        construction, and retrofitting of commercial-scale 
        biorefineries using eligible technology.
    ``(d) Grants.--
            ``(1) Competitive basis.--The Secretary shall award grants 
        under subsection (c)(1) on a competitive basis.
            ``(2) Selection criteria.--
                    ``(A) In general.--In approving grant applications, 
                the Secretary shall establish a priority scoring system 
                that assigns priority scores to each application and 
                only approve applications that exceed a specified 
                minimum, as determined by the Secretary.
                    ``(B) Feasibility.--In approving a grant 
                application, the Secretary shall determine the 
                technical and economic feasibility of the project based 
                on a feasibility study of the project described in the 
                application conducted by an independent third party.
                    ``(C) Scoring system.--In determining the priority 
                scoring system, the Secretary shall consider--
                            ``(i) the potential market for the advanced 
                        biofuel and the byproducts produced;
                            ``(ii) the level of financial participation 
                        by the applicant, including support from non-
                        Federal and private sources;
                            ``(iii) whether the applicant is proposing 
                        to use a feedstock not previously used in the 
                        production of advanced biofuels;
                            ``(iv) whether the applicant is proposing 
                        to work with producer associations or 
                        cooperatives;
                            ``(v) whether the applicant has established 
                        that the adoption of the process proposed in 
                        the application will have a positive impact on 
                        resource conservation, public health, and the 
                        environment;
                            ``(vi) the potential for rural economic 
                        development;
                            ``(vii) whether the area in which the 
                        applicant proposes to locate the biorefinery 
                        has other similar facilities;
                            ``(viii) whether the project can be 
                        replicated; and
                            ``(ix) scalability for commercial use.
            ``(3) Cost sharing.--
                    ``(A) Limits.--The amount of a grant awarded for 
                development and construction of a biorefinery under 
                subsection (c)(1) shall not exceed an amount equal to 
                30 percent of the cost of the project.
                    ``(B) Form of grantee share.--
                            ``(i) In general.--The grantee share of the 
                        cost of a project may be made in the form of 
                        cash or material.
                            ``(ii) Limitation.--The amount of the 
                        grantee share that is made in the form of 
                        material shall not exceed 15 percent of the 
                        amount of the grantee share determined under 
                        subparagraph (A).
    ``(e) Loan Guarantees.--
            ``(1) Selection criteria.--
                    ``(A) In general.--In approving loan guarantee 
                applications, the Secretary shall establish a priority 
                scoring system that assigns priority scores to each 
                application and only approve applications that exceed a 
                specified minimum, as determined by the Secretary.
                    ``(B) Feasibility.--In approving a loan guarantee 
                application, the Secretary shall determine the 
                technical and economic feasibility of the project based 
                on a feasibility study of the project described in the 
                application conducted by an independent third party.
                    ``(C) Scoring system.--In determining the priority 
                scoring system for loan guarantees under subsection 
                (c)(2), the Secretary shall consider--
                            ``(i) whether the applicant has established 
                        a market for the advanced biofuel and the 
                        byproducts produced;
                            ``(ii) whether the area in which the 
                        applicant proposes to place the biorefinery has 
                        other similar facilities;
                            ``(iii) whether the applicant is proposing 
                        to use a feedstock not previously used in the 
                        production of advanced biofuels;
                            ``(iv) whether the applicant is proposing 
                        to work with producer associations or 
                        cooperatives;
                            ``(v) the level of financial participation 
                        by the applicant, including support from non-
                        Federal and private sources;
                            ``(vi) whether the applicant has 
                        established that the adoption of the process 
                        proposed in the application will have a 
                        positive impact on resource conservation, 
                        public health, and the environment;
                            ``(vii) whether the applicant can establish 
                        that if adopted, the biofuels production 
                        technology proposed in the application will not 
                        have any significant negative impacts on 
                        existing manufacturing plants or other 
                        facilities that use similar feedstocks;
                            ``(viii) the potential for rural economic 
                        development;
                            ``(ix) the level of local ownership 
                        proposed in the application; and
                            ``(x) whether the project can be 
                        replicated.
            ``(2) Limitations.--
                    ``(A) Maximum amount of loan guaranteed.--The 
                principal amount of a loan guaranteed under subsection 
                (c)(2) may not exceed $250,000,000.
                    ``(B) Maximum percentage of loan guaranteed.--
                            ``(i) In general.--Except as otherwise 
                        provided in this subparagraph, a loan 
                        guaranteed under subsection (c)(2) shall be in 
                        an amount not to exceed 80 percent of the 
                        project costs, as determined by the Secretary.
                            ``(ii) Other direct federal funding.--The 
                        amount of a loan guaranteed for a project under 
                        subsection (c)(2) shall be reduced by the 
                        amount of other direct Federal funding that the 
                        eligible entity receives for the same project.
                            ``(iii) Authority to guarantee the loan.--
                        The Secretary may guarantee up to 90 percent of 
                        the principal and interest due on a loan 
                        guaranteed under subsection (c)(2).
                    ``(C) Loan guarantee fund distribution.--Of the 
                funds made available for loan guarantees for a fiscal 
                year under subsection (h), 50 percent of the funds 
                shall be reserved for obligation during the second half 
                of the fiscal year.
    ``(f) Consultation.--In carrying out this section, the Secretary 
shall consult with the Secretary of Energy.
    ``(g) Condition on Provision of Assistance.--
            ``(1) In general.--As a condition of receiving a grant or 
        loan guarantee under this section, an eligible entity shall 
        ensure that all laborers and mechanics employed by contractors 
        or subcontractors in the performance of construction work 
        financed, in whole or in part, with the grant or loan 
        guarantee, as the case may be, shall be paid wages at rates not 
        less than those prevailing on similar construction in the 
        locality, as determined by the Secretary of Labor in accordance 
        with sections 3141 through 3144, 3146, and 3147 of title 40, 
        United States Code.
            ``(2) Authority and functions.--The Secretary of Labor 
        shall have, with respect to the labor standards described in 
        paragraph (1), the authority and functions set forth in 
        Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App) and 
        section 3145 of title 40, United States Code.
    ``(h) Funding.--
            ``(1) Mandatory funding.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall use for the cost of 
        loan guarantees under this section, to remain available until 
        expended--
                    ``(A) $75,000,000 for fiscal year 2009; and
                    ``(B) $245,000,000 for fiscal year 2010.
            ``(2) Discretionary funding.--In addition to any other 
        funds made available to carry out this section, there is 
        authorized to be appropriated to carry out this section 
        $150,000,000 for each of fiscal years 2009 through 2012.

``SEC. 9004. REPOWERING ASSISTANCE.

    ``(a) In General.--The Secretary shall carry out a program to 
encourage biorefineries in existence on the date of enactment of the 
Food, Conservation, and Energy Act of 2008 to replace fossil fuels used 
to produce heat or power to operate the biorefineries by making 
payments for--
            ``(1) the installation of new systems that use renewable 
        biomass; or
            ``(2) the new production of energy from renewable biomass.
    ``(b) Payments.--
            ``(1) In general.--The Secretary may make payments under 
        this section to any biorefinery that meets the requirements of 
        this section for a period determined by the Secretary.
            ``(2) Amount.--The Secretary shall determine the amount of 
        payments to be made under this section to a biorefinery after 
        considering--
                    ``(A) the quantity of fossil fuels a renewable 
                biomass system is replacing;
                    ``(B) the percentage reduction in fossil fuel used 
                by the biorefinery that will result from the 
                installation of the renewable biomass system; and
                    ``(C) the cost and cost effectiveness of the 
                renewable biomass system.
    ``(c) Eligibility.--To be eligible to receive a payment under this 
section, a biorefinery shall demonstrate to the Secretary that the 
renewable biomass system of the biorefinery is feasible based on an 
independent feasibility study that takes into account the economic, 
technical and environmental aspects of the system.
    ``(d) Funding.--
            ``(1) Mandatory funding.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall use to make payments 
        under this section $35,000,000 for fiscal year 2009, to remain 
        available until expended.
            ``(2) Discretionary funding.--In addition to any other 
        funds made available to carry out this section, there is 
        authorized to be appropriated to carry out this section 
        $15,000,000 for each of fiscal years 2009 through 2012.

``SEC. 9005. BIOENERGY PROGRAM FOR ADVANCED BIOFUELS.

    ``(a) Definition of Eligible Producer.--In this section, the term 
`eligible producer' means a producer of advanced biofuels.
    ``(b) Payments.--The Secretary shall make payments to eligible 
producers to support and ensure an expanding production of advanced 
biofuels.
    ``(c) Contracts.--To receive a payment, an eligible producer 
shall--
            ``(1) enter into a contract with the Secretary for 
        production of advanced biofuels; and
            ``(2) submit to the Secretary such records as the Secretary 
        may require as evidence of the production of advanced biofuels.
    ``(d) Basis for Payments.--The Secretary shall make payments under 
this section to eligible producers based on--
            ``(1) the quantity and duration of production by the 
        eligible producer of an advanced biofuel;
            ``(2) the net nonrenewable energy content of the advanced 
        biofuel, if sufficient data is available, as determined by the 
        Secretary; and
            ``(3) other appropriate factors, as determined by the 
        Secretary.
    ``(e) Equitable Distribution.--The Secretary may limit the amount 
of payments that may be received by a single eligible producer under 
this section in order to distribute the total amount of funding 
available in an equitable manner.
    ``(f) Other Requirements.--To receive a payment under this section, 
an eligible producer shall meet any other requirements of Federal and 
State law (including regulations) applicable to the production of 
advanced biofuels.
    ``(g) Funding.--
            ``(1) Mandatory funding.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall use to carry out this 
        section, to remain available until expended--
                    ``(A) $55,000,000 for fiscal year 2009;
                    ``(B) $55,000,000 for fiscal year 2010;
                    ``(C) $85,000,000 for fiscal year 2011; and
                    ``(D) $105,000,000 for fiscal year 2012.
            ``(2) Discretionary funding.--In addition to any other 
        funds made available to carry out this section, there is 
        authorized to be appropriated to carry out this section 
        $25,000,000 for each of fiscal years 2009 through 2012.
            ``(3) Limitation.--Of the funds provided for each fiscal 
        year, not more than 5 percent of the funds shall be made 
        available to eligible producers for production at facilities 
        with a total refining capacity exceeding 150,000,000 gallons 
        per year.

``SEC. 9006. BIODIESEL FUEL EDUCATION PROGRAM.

    ``(a) Establishment.--The Secretary shall, under such terms and 
conditions as the Secretary determines to be appropriate, make 
competitive grants to eligible entities to educate governmental and 
private entities that operate vehicle fleets, other interested entities 
(as determined by the Secretary), and the public about the benefits of 
biodiesel fuel use.
    ``(b) Eligible Entities.--To receive a grant under subsection (b), 
an entity shall--
            ``(1) be a nonprofit organization or institution of higher 
        education;
            ``(2) have demonstrated knowledge of biodiesel fuel 
        production, use, or distribution; and
            ``(3) have demonstrated the ability to conduct educational 
        and technical support programs.
    ``(c) Consultation.--In carrying out this section, the Secretary 
shall consult with the Secretary of Energy.
    ``(d) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section $1,000,000 for each 
of fiscal years 2008 through 2012.

``SEC. 9007. RURAL ENERGY FOR AMERICA PROGRAM.

    ``(a) Establishment.--The Secretary, in consultation with the 
Secretary of Energy, shall establish a Rural Energy for America Program 
to promote energy efficiency and renewable energy development for 
agricultural producers and rural small businesses through--
            ``(1) grants for energy audits and renewable energy 
        development assistance; and
            ``(2) financial assistance for energy efficiency 
        improvements and renewable energy systems.
    ``(b) Energy Audits and Renewable Energy Development Assistance.--
            ``(1) In general.--The Secretary shall make competitive 
        grants to eligible entities to provide assistance to 
        agricultural producers and rural small businesses--
                    ``(A) to become more energy efficient; and
                    ``(B) to use renewable energy technologies and 
                resources.
            ``(2) Eligible entities.--An eligible entity under this 
        subsection is--
                    ``(A) a unit of State, tribal, or local government;
                    ``(B) a land-grant college or university or other 
                institution of higher education;
                    ``(C) a rural electric cooperative or public power 
                entity; and
                    ``(D) any other similar entity, as determined by 
                the Secretary.
            ``(3) Selection criteria.--In reviewing applications of 
        eligible entities to receive grants under paragraph (1), the 
        Secretary shall consider--
                    ``(A) the ability and expertise of the eligible 
                entity in providing professional energy audits and 
                renewable energy assessments;
                    ``(B) the geographic scope of the program proposed 
                by the eligible entity in relation to the identified 
                need;
                    ``(C) the number of agricultural producers and 
                rural small businesses to be assisted by the program;
                    ``(D) the potential of the proposed program to 
                produce energy savings and environmental benefits;
                    ``(E) the plan of the eligible entity for 
                performing outreach and providing information and 
                assistance to agricultural producers and rural small 
                businesses on the benefits of energy efficiency and 
                renewable energy development; and
                    ``(F) the ability of the eligible entity to 
                leverage other sources of funding.
            ``(4) Use of grant funds.--A recipient of a grant under 
        paragraph (1) shall use the grant funds to assist agricultural 
        producers and rural small businesses by--
                    ``(A) conducting and promoting energy audits; and
                    ``(B) providing recommendations and information on 
                how--
                            ``(i) to improve the energy efficiency of 
                        the operations of the agricultural producers 
                        and rural small businesses; and
                            ``(ii) to use renewable energy technologies 
                        and resources in the operations.
            ``(5) Limitation.--Grant recipients may not use more than 5 
        percent of a grant for administrative expenses.
            ``(6) Cost sharing.--A recipient of a grant under paragraph 
        (1) that conducts an energy audit for an agricultural producer 
        or rural small business under paragraph (4) shall require that, 
        as a condition of the energy audit, the agricultural producer 
        or rural small business pay at least 25 percent of the cost of 
        the energy audit, which shall be retained by the eligible 
        entity for the cost of the energy audit.
    ``(c) Financial Assistance for Energy Efficiency Improvements and 
Renewable Energy Systems.--
            ``(1) In general.--In addition to any similar authority, 
        the Secretary shall provide loan guarantees and grants to 
        agricultural producers and rural small businesses--
                    ``(A) to purchase renewable energy systems, 
                including systems that may be used to produce and sell 
                electricity; and
                    ``(B) to make energy efficiency improvements.
            ``(2) Award considerations.--In determining the amount of a 
        loan guarantee or grant provided under this section, the 
        Secretary shall take into consideration, as applicable--
                    ``(A) the type of renewable energy system to be 
                purchased;
                    ``(B) the estimated quantity of energy to be 
                generated by the renewable energy system;
                    ``(C) the expected environmental benefits of the 
                renewable energy system;
                    ``(D) the quantity of energy savings expected to be 
                derived from the activity, as demonstrated by an energy 
                audit;
                    ``(E) the estimated period of time for the energy 
                savings generated by the activity to equal the cost of 
                the activity;
                    ``(F) the expected energy efficiency of the 
                renewable energy system; and
                    ``(G) other appropriate factors.
            ``(3) Feasibility studies.--
                    ``(A) In general.--The Secretary may provide 
                assistance in the form of grants to an agricultural 
                producer or rural small business to conduct a 
                feasibility study for a project for which assistance 
                may be provided under this subsection.
                    ``(B) Limitation.--The Secretary shall use not more 
                than 10 percent of the funds made available to carry 
                out this subsection to provide assistance described in 
                subparagraph (A).
                    ``(C) Avoidance of duplicative assistance.--An 
                entity shall be ineligible to receive assistance to 
                carry out a feasibility study for a project under this 
                paragraph if the entity has received other Federal or 
                State assistance for a feasibility study for the 
                project.
            ``(4) Limits.--
                    ``(A) Grants.--The amount of a grant under this 
                subsection shall not exceed 25 percent of the cost of 
                the activity carried out using funds from the grant.
                    ``(B) Maximum amount of loan guarantees.--The 
                amount of a loan guaranteed under this subsection shall 
                not exceed $25,000,000.
                    ``(C) Maximum amount of combined grant and loan 
                guarantee.--The combined amount of a grant and loan 
                guaranteed under this subsection shall not exceed 75 
                percent of the cost of the activity funded under this 
                subsection.
    ``(d) Outreach.--The Secretary shall ensure, to the maximum extent 
practicable, that adequate outreach relating to this section is being 
conducted at the State and local levels.
    ``(e) Lower-Cost Activities.--
            ``(1) Limitation on use of funds.--Except as provided in 
        paragraph (2), the Secretary shall use not less than 20 percent 
        of the funds made available under subsection (g) to provide 
        grants of $20,000 or less.
            ``(2) Exception.--Effective beginning on June 30 of each 
        fiscal year, paragraph (1) shall not apply to funds made 
        available under subsection (g) for the fiscal year.
    ``(f) Report.--Not later than 4 years after the date of enactment 
of the Food, Conservation, and Energy Act of 2008, the Secretary shall 
submit to Congress a report on the implementation of this section, 
including the outcomes achieved by projects funded under this section.
    ``(g) Funding.--
            ``(1) Mandatory funding.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall use to carry out this 
        section, to remain available until expended--
                    ``(A) $55,000,000 for fiscal year 2009;
                    ``(B) $60,000,000 for fiscal year 2010;
                    ``(C) $70,000,000 for fiscal year 2011; and
                    ``(D) $70,000,000 for fiscal year 2012.
            ``(2) Audit and technical assistance funding.--
                    ``(A) In general.--Subject to subparagraph (B), of 
                the funds made available for each fiscal year under 
                paragraph (1), 4 percent shall be available to carry 
                out subsection (b).
                    ``(B) Other use.--Funds not obligated under 
                subparagraph (A) by April 1 of each fiscal year to 
                carry out subsection (b) shall become available to 
                carry out subsection (c).
            ``(3) Discretionary funding.--In addition to any other 
        funds made available to carry out this section, there is 
        authorized to be appropriated to carry out this section 
        $25,000,000 for each of fiscal years 2009 through 2012.

``SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT.

    ``(a) Definitions.--In this section:
            ``(1) Biobased product.--The term `biobased product' 
        means--
                    ``(A) an industrial product (including chemicals, 
                materials, and polymers) produced from biomass; or
                    ``(B) a commercial or industrial product (including 
                animal feed and electric power) derived in connection 
                with the conversion of biomass to fuel.
            ``(2) Demonstration.--The term `demonstration' means 
        demonstration of technology in a pilot plant or semi-works 
        scale facility, including a plant or facility located on a 
        farm.
            ``(3) Initiative.--The term `Initiative' means the Biomass 
        Research and Development Initiative established under 
        subsection (e).
    ``(b) Cooperation and Coordination in Biomass Research and 
Development.--
            ``(1) In general.--The Secretary of Agriculture and the 
        Secretary of Energy shall coordinate policies and procedures 
        that promote research and development regarding the production 
        of biofuels and biobased products.
            ``(2) Points of contact.--To coordinate research and 
        development programs and activities relating to biofuels and 
        biobased products that are carried out by their respective 
        departments--
                    ``(A) the Secretary of Agriculture shall designate, 
                as the point of contact for the Department of 
                Agriculture, an officer of the Department of 
                Agriculture appointed by the President to a position in 
                the Department before the date of the designation, by 
                and with the advice and consent of the Senate; and
                    ``(B) the Secretary of Energy shall designate, as 
                the point of contact for the Department of Energy, an 
                officer of the Department of Energy appointed by the 
                President to a position in the Department before the 
                date of the designation, by and with the advice and 
                consent of the Senate.
    ``(c) Biomass Research and Development Board.--
            ``(1) Establishment.--There is established the Biomass 
        Research and Development Board to carry out the duties 
        described in paragraph (3).
            ``(2) Membership.--The Board shall consist of--
                    ``(A) the point of contacts of the Department of 
                Energy and the Department of Agriculture, who shall 
                serve as cochairpersons of the Board;
                    ``(B) a senior officer of each of the Department of 
                the Interior, the Environmental Protection Agency, the 
                National Science Foundation, and the Office of Science 
                and Technology Policy, each of whom shall have a rank 
                that is equivalent to the rank of the points of 
                contact; and
                    ``(C) at the option of the Secretary of Agriculture 
                and the Secretary of Energy, other members appointed by 
                the Secretaries (after consultation with the Board).
            ``(3) Duties.--The Board shall--
                    ``(A) coordinate research and development 
                activities relating to biofuels and biobased products--
                            ``(i) between the Department of Agriculture 
                        and the Department of Energy; and
                            ``(ii) with other departments and agencies 
                        of the Federal Government;
                    ``(B) provide recommendations to the points of 
                contact concerning administration of this title;
                    ``(C) ensure that--
                            ``(i) solicitations are open and 
                        competitive with awards made annually; and
                            ``(ii) objectives and evaluation criteria 
                        of the solicitations are clearly stated and 
                        minimally prescriptive, with no areas of 
                        special interest; and
                    ``(D) ensure that the panel of scientific and 
                technical peers assembled under subsection (e) to 
                review proposals is composed predominantly of 
                independent experts selected from outside the 
                Departments of Agriculture and Energy.
            ``(4) Funding.--Each agency represented on the Board is 
        encouraged to provide funds for any purpose under this section.
            ``(5) Meetings.--The Board shall meet at least quarterly.
    ``(d) Biomass Research and Development Technical Advisory 
Committee.--
            ``(1) Establishment.--There is established the Biomass 
        Research and Development Technical Advisory Committee to carry 
        out the duties described in paragraph (3).
            ``(2) Membership.--
                    ``(A) In general.--The Advisory Committee shall 
                consist of--
                            ``(i) an individual affiliated with the 
                        biofuels industry;
                            ``(ii) an individual affiliated with the 
                        biobased industrial and commercial products 
                        industry;
                            ``(iii) an individual affiliated with an 
                        institution of higher education who has 
                        expertise in biofuels and biobased products;
                            ``(iv) 2 prominent engineers or scientists 
                        from government or academia who have expertise 
                        in biofuels and biobased products;
                            ``(v) an individual affiliated with a 
                        commodity trade association;
                            ``(vi) 2 individuals affiliated with 
                        environmental or conservation organizations;
                            ``(vii) an individual associated with State 
                        government who has expertise in biofuels and 
                        biobased products;
                            ``(viii) an individual with expertise in 
                        energy and environmental analysis;
                            ``(ix) an individual with expertise in the 
                        economics of biofuels and biobased products;
                            ``(x) an individual with expertise in 
                        agricultural economics;
                            ``(xi) an individual with expertise in 
                        plant biology and biomass feedstock 
                        development;
                            ``(xii) an individual with expertise in 
                        agronomy, crop science, or soil science; and
                            ``(xiii) at the option of the points of 
                        contact, other members.
                    ``(B) Appointment.--The members of the Advisory 
                Committee shall be appointed by the points of contact.
            ``(3) Duties.--The Advisory Committee shall--
                    ``(A) advise the points of contact with respect to 
                the Initiative; and
                    ``(B) evaluate and make recommendations in writing 
                to the Board regarding whether--
                            ``(i) funds authorized for the Initiative 
                        are distributed and used in a manner that is 
                        consistent with the objectives, purposes, and 
                        considerations of the Initiative;
                            ``(ii) solicitations are open and 
                        competitive with awards made annually;
                            ``(iii) objectives and evaluation criteria 
                        of the solicitations are clearly stated and 
                        minimally prescriptive, with no areas of 
                        special interest;
                            ``(iv) the points of contact are funding 
                        proposals under this title that are selected on 
                        the basis of merit, as determined by an 
                        independent panel of scientific and technical 
                        peers predominantly from outside the 
                        Departments of Agriculture and Energy; and
                            ``(v) activities under this title are 
                        carried out in accordance with this title.
            ``(4) Coordination.--To avoid duplication of effort, the 
        Advisory Committee shall coordinate its activities with those 
        of other Federal advisory committees working in related areas.
            ``(5) Meetings.--The Advisory Committee shall meet at least 
        quarterly.
            ``(6) Terms.--Members of the Advisory Committee shall be 
        appointed for a term of 3 years.
    ``(e) Biomass Research and Development Initiative.--
            ``(1) In general.--The Secretary of Agriculture and the 
        Secretary of Energy, acting through their respective points of 
        contact and in consultation with the Board, shall establish and 
        carry out a Biomass Research and Development Initiative under 
        which competitively awarded grants, contracts, and financial 
        assistance are provided to, or entered into with, eligible 
        entities to carry out research on and development and 
        demonstration of--
                    ``(A) biofuels and biobased products; and
                    ``(B) the methods, practices, and technologies, for 
                the production of biofuels and biobased products.
            ``(2) Objectives.--The objectives of the Initiative are to 
        develop--
                    ``(A) technologies and processes necessary for 
                abundant commercial production of biofuels at prices 
                competitive with fossil fuels;
                    ``(B) high-value biobased products--
                            ``(i) to enhance the economic viability of 
                        biofuels and power;
                            ``(ii) to serve as substitutes for 
                        petroleum-based feedstocks and products; and
                            ``(iii) to enhance the value of coproducts 
                        produced using the technologies and processes; 
                        and
                    ``(C) a diversity of economically and 
                environmentally sustainable domestic sources of 
                renewable biomass for conversion to biofuels, 
                bioenergy, and biobased products.
            ``(3) Technical areas.--The Secretary of Agriculture and 
        the Secretary of Energy, in consultation with the Administrator 
        of the Environmental Protection Agency and heads of other 
        appropriate departments and agencies (referred to in this 
        subsection as the `Secretaries'), shall direct the Initiative 
        in the 3 following areas:
                    ``(A) Feedstocks development.--Research, 
                development, and demonstration activities regarding 
                feedstocks and feedstock logistics (including the 
                harvest, handling, transport, preprocessing, and 
                storage) relevant to production of raw materials for 
                conversion to biofuels and biobased products.
                    ``(B) Biofuels and biobased products development.--
                Research, development, and demonstration activities to 
                support--
                            ``(i) the development of diverse cost-
                        effective technologies for the use of 
                        cellulosic biomass in the production of 
                        biofuels and biobased products; and
                            ``(ii) product diversification through 
                        technologies relevant to production of a range 
                        of biobased products (including chemicals, 
                        animal feeds, and cogenerated power) that 
                        potentially can increase the feasibility of 
                        fuel production in a biorefinery.
                    ``(C) Biofuels development analysis.--
                            ``(i) Strategic guidance.--The development 
                        of analysis that provides strategic guidance 
                        for the application of renewable biomass 
                        technologies to improve sustainability and 
                        environmental quality, cost effectiveness, 
                        security, and rural economic development.
                            ``(ii) Energy and environmental impact.--
                        Development of systematic evaluations of the 
                        impact of expanded biofuel production on the 
                        environment (including forest land) and on the 
                        food supply for humans and animals, including 
                        the improvement and development of tools for 
                        life cycle analysis of current and potential 
                        biofuels.
                            ``(iii) Assessment of federal land.--
                        Assessments of the potential of Federal land 
                        resources to increase the production of 
                        feedstocks for biofuels and biobased products, 
                        consistent with the integrity of soil and water 
                        resources and with other environmental 
                        considerations.
            ``(4) Additional considerations.--Within the technical 
        areas described in paragraph (3), the Secretaries shall support 
        research and development--
                    ``(A) to create continuously expanding 
                opportunities for participants in existing biofuels 
                production by seeking synergies and continuity with 
                current technologies and practices;
                    ``(B) to maximize the environmental, economic, and 
                social benefits of production of biofuels and derived 
                biobased products on a large scale; and
                    ``(C) to facilitate small-scale production and 
                local and on-farm use of biofuels, including the 
                development of small-scale gasification technologies 
                for production of biofuel from cellulosic feedstocks.
            ``(5) Eligibility.--To be eligible for a grant, contract, 
        or assistance under this section, an applicant shall be--
                    ``(A) an institution of higher education;
                    ``(B) a National Laboratory;
                    ``(C) a Federal research agency;
                    ``(D) a State research agency;
                    ``(E) a private sector entity;
                    ``(F) a nonprofit organization; or
                    ``(G) a consortium of 2 or more entities described 
                in subparagraphs (A) through (F).
            ``(6) Administration.--
                    ``(A) In general.--After consultation with the 
                Board, the points of contact shall--
                            ``(i) publish annually 1 or more joint 
                        requests for proposals for grants, contracts, 
                        and assistance under this subsection;
                            ``(ii) require that grants, contracts, and 
                        assistance under this section be awarded based 
                        on a scientific peer review by an independent 
                        panel of scientific and technical peers;
                            ``(iii) give special consideration to 
                        applications that--
                                    ``(I) involve a consortia of 
                                experts from multiple institutions;
                                    ``(II) encourage the integration of 
                                disciplines and application of the best 
                                technical resources; and
                                    ``(III) increase the geographic 
                                diversity of demonstration projects; 
                                and
                            ``(iv) require that the technical areas 
                        described in each of subparagraphs (A), (B), 
                        and (C) of paragraph (3) receive not less than 
                        15 percent of funds made available to carry out 
                        this section.
                    ``(B) Cost share.--
                            ``(i) Research and development projects.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), the non-
                                Federal share of the cost of a research 
                                or development project under this 
                                section shall be not less than 20 
                                percent.
                                    ``(II) Reduction.--The Secretary of 
                                Agriculture or the Secretary of Energy, 
                                as appropriate, may reduce the non-
                                Federal share required under subclause 
                                (I) if the appropriate Secretary 
                                determines the reduction to be 
                                necessary and appropriate.
                            ``(ii) Demonstration and commercial 
                        projects.--The non-Federal share of the cost of 
                        a demonstration or commercial project under 
                        this section shall be not less than 50 percent.
                    ``(C) Technology and information transfer.--The 
                Secretary of Agriculture and the Secretary of Energy 
                shall ensure that applicable research results and 
                technologies from the Initiative are--
                            ``(i) adapted, made available, and 
                        disseminated, as appropriate; and
                            ``(ii) included in the best practices 
                        database established under section 1672C(e) of 
                        the Food, Agriculture, Conservation, and Trade 
                        Act of 1990.
    ``(f) Administrative Support and Funds.--
            ``(1) In general.--The Secretary of Energy and the 
        Secretary of Agriculture may provide such administrative 
        support and funds of the Department of Energy and the 
        Department of Agriculture to the Board and the Advisory 
        Committee as are necessary to enable the Board and the Advisory 
        Committee to carry out their duties under this section.
            ``(2) Other agencies.--The heads of the agencies referred 
        to in subsection (c)(2)(B), and the other members of the Board 
        appointed under subsection (c)(2)(C), are encouraged to provide 
        administrative support and funds of their respective agencies 
        to the Board and the Advisory Committee.
            ``(3) Limitation.--Not more than 4 percent of the amount 
        made available for each fiscal year under subsection (h) may be 
        used to pay the administrative costs of carrying out this 
        section.
    ``(g) Reports.--For each fiscal year for which funds are made 
available to carry out this section, the Secretary of Energy and the 
Secretary of Agriculture shall jointly submit to Congress a detailed 
report on--
            ``(1) the status and progress of the Initiative, including 
        a report from the Advisory Committee on whether funds 
        appropriated for the Initiative have been distributed and used 
        in a manner that is consistent with the objectives and 
        requirements of this section;
            ``(2) the general status of cooperation and research and 
        development efforts carried out at each agency with respect to 
        biofuels and biobased products; and
            ``(3) the plans of the Secretary of Energy and the 
        Secretary of Agriculture for addressing concerns raised in the 
        report, including concerns raised by the Advisory Committee.
    ``(h) Funding.--
            ``(1) Mandatory funding.--Of the funds of the Commodity 
        Credit Corporation, the Secretary of Agriculture shall use to 
        carry out this section, to remain available until expended--
                    ``(A) $20,000,000 for fiscal year 2009;
                    ``(B) $28,000,000 for fiscal year 2010;
                    ``(C) $30,000,000 for fiscal year 2011; and
                    ``(D) $40,000,000 for fiscal year 2012.
            ``(2) Discretionary funding.--In addition to any other 
        funds made available to carry out this section, there is 
        authorized to be appropriated to carry out this section 
        $35,000,000 for each of fiscal years 2009 through 2012.

``SEC. 9009. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE.

    ``(a) Definitions.--In this section:
            ``(1) Eligible rural community.--The term `eligible rural 
        community' means a community located in a rural area (as 
        defined in section 343(a)(13)(A) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1991(a)(13)(A))).
            ``(2) Initiative.--The term `Initiative' means the Rural 
        Energy Self-Sufficiency Initiative established under this 
        section.
            ``(3) Integrated renewable energy system.--The term 
        `integrated renewable energy system' means a community-wide 
        energy system that--
                    ``(A) reduces conventional energy use; and
                    ``(B) increases the use of energy from renewable 
                sources.
    ``(b) Establishment.--The Secretary shall establish a Rural Energy 
Self-Sufficiency Initiative to provide financial assistance for the 
purpose of enabling eligible rural communities to substantially 
increase the energy self-sufficiency of the eligible rural communities.
    ``(c) Grant Assistance.--
            ``(1) In general.--The Secretary shall make grants 
        available under the Initiative to eligible rural communities to 
        carry out an activity described in paragraph (2).
            ``(2) Use of grant funds.--An eligible rural community may 
        use a grant--
                    ``(A) to conduct an energy assessment that assesses 
                the total energy use of all energy users in the 
                eligible rural community;
                    ``(B) to formulate and analyze ideas for reducing 
                energy usage by the eligible rural community from 
                conventional sources; and
                    ``(C) to develop and install an integrated 
                renewable energy system.
            ``(3) Grant selection.--
                    ``(A) Application.--To be considered for a grant, 
                an eligible rural community shall submit an application 
                to the Secretary that describes the ways in which the 
                community would use the grant to carry out an activity 
                described in paragraph (2).
                    ``(B) Preference.--The Secretary shall give 
                preference to those applications that propose to carry 
                out an activity in coordination with--
                            ``(i) institutions of higher education or 
                        nonprofit foundations of institutions of higher 
                        education;
                            ``(ii) Federal, State, or local government 
                        agencies;
                            ``(iii) public or private power generation 
                        entities; or
                            ``(iv) government entities with 
                        responsibility for water or natural resources.
            ``(4) Report.--An eligible rural community receiving a 
        grant under the Initiative shall submit to the Secretary a 
        report on the project of the eligible rural community.
            ``(5) Cost-sharing.--The amount of a grant under the 
        Initiative shall not exceed 50 percent of the cost of the 
        activities described in the application.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2009 through 2012.

``SEC. 9010. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRODUCERS.

    ``(a) Definitions.--In this section:
            ``(1) Bioenergy.--The term `bioenergy' means fuel grade 
        ethanol and other biofuel.
            ``(2) Bioenergy producer.--The term `bioenergy producer' 
        means a producer of bioenergy that uses an eligible commodity 
        to produce bioenergy under this section.
            ``(3) Eligible commodity.--The term `eligible commodity' 
        means a form of raw or refined sugar or in-process sugar that 
        is eligible to be marketed in the United States for human 
        consumption or to be used for the extraction of sugar for human 
        consumption.
            ``(4) Eligible entity.--The term `eligible entity' means an 
        entity located in the United States that markets an eligible 
        commodity in the United States.
    ``(b) Feedstock Flexibility Program.--
            ``(1) In general.--
                    ``(A) Purchases and sales.--For each of the 2008 
                through 2012 crops, the Secretary shall purchase 
                eligible commodities from eligible entities and sell 
                such commodities to bioenergy producers for the purpose 
                of producing bioenergy in a manner that ensures that 
                section 156 of the Federal Agriculture Improvement and 
                Reform Act (7 U.S.C. 7272) is operated at no cost to 
                the Federal Government by avoiding forfeitures to the 
                Commodity Credit Corporation.
                    ``(B) Competitive procedures.--In carrying out the 
                purchases and sales required under subparagraph (A), 
                the Secretary shall, to the maximum extent practicable, 
                use competitive procedures, including the receiving, 
                offering, and accepting of bids, when entering into 
                contracts with eligible entities and bioenergy 
                producers, provided that such procedures are consistent 
                with the purposes of subparagraph (A).
                    ``(C) Limitation.--The purchase and sale of 
                eligible commodities under subparagraph (A) shall only 
                be made in crop years in which such purchases and sales 
                are necessary to ensure that the program authorized 
                under section 156 of the Federal Agriculture 
                Improvement and Reform Act (7 U.S.C. 7272) is operated 
                at no cost to the Federal Government by avoiding 
                forfeitures to the Commodity Credit Corporation.
            ``(2) Notice.--
                    ``(A) In general.--As soon as practicable after the 
                date of enactment of the Food, Conservation, and Energy 
                Act of 2008 and each September 1 thereafter through 
                September 1, 2012, the Secretary shall provide notice 
                to eligible entities and bioenergy producers of the 
                quantity of eligible commodities that shall be made 
                available for purchase and sale for the crop year 
                following the date of the notice under this section.
                    ``(B) Reestimates.--Not later than the January 1, 
                April 1, and July 1 of the calendar year following the 
                date of a notice under subparagraph (A), the Secretary 
                shall reestimate the quantity of eligible commodities 
                determined under subparagraph (A), and provide notice 
                and make purchases and sales based on such reestimates.
            ``(3) Commodity credit corporation inventory.--
                    ``(A) Dispositions.--
                            ``(i) Bioenergy and generally.--Except as 
                        provided in clause (ii), to the extent that an 
                        eligible commodity is owned and held in 
                        inventory by the Commodity Credit Corporation 
                        (accumulated pursuant to the program authorized 
                        under section 156 of the Federal Agriculture 
                        Improvement and Reform Act (7 U.S.C. 7272)), 
                        the Secretary shall--
                                    ``(I) sell the eligible commodity 
                                to bioenergy producers under this 
                                section consistent with paragraph 
                                (1)(C);
                                    ``(II) dispose of the eligible 
                                commodity in accordance with section 
                                156(f)(2) of that Act; or
                                    ``(III) otherwise dispose of the 
                                eligible commodity through the buyback 
                                of certificates of quota entry.
                            ``(ii) Preservation of other authorities.--
                        Nothing in this section limits the use of other 
                        authorities for the disposition of an eligible 
                        commodity held in the inventory of the 
                        Commodity Credit Corporation for nonfood use or 
                        otherwise in a manner that does not increase 
                        the net quantity of sugar available for human 
                        consumption in the United States market, 
                        consistent with section 156(f)(1) of the 
                        Federal Agriculture Improvement and Reform Act 
                        (7 U.S.C. 7272(f)(1)).
                    ``(B) Emergency shortages.--Notwithstanding 
                subparagraph (A), if there is an emergency shortage of 
                sugar for human consumption in the United States market 
                that is caused by a war, flood, hurricane, or other 
                natural disaster, or other similar event, the Secretary 
                may dispose of an eligible commodity that is owned and 
                held in inventory by the Commodity Credit Corporation 
                (accumulated pursuant to the program authorized under 
                section 156 of the Federal Agriculture Improvement and 
                Reform Act (7 U.S.C. 7272)) through disposition as 
                authorized under section 156(f) of that Act or through 
                the use of any other authority of the Commodity Credit 
                Corporation.
            ``(4) Transfer rule; storage fees.--
                    ``(A) General transfer rule.--Except with regard to 
                emergency dispositions under paragraph (3)(B) and as 
                provided in subparagraph (C), the Secretary shall 
                ensure that bioenergy producers that purchase eligible 
                commodities pursuant to this section take possession of 
                the eligible commodities within 30 calendar days of the 
                date of such purchase from the Commodity Credit 
                Corporation.
                    ``(B) Payment of storage fees prohibited.--
                            ``(i) In general.--The Secretary shall, to 
                        the maximum extent practicable, carry out this 
                        section in a manner that ensures no storage 
                        fees are paid by the Commodity Credit 
                        Corporation in the administration of this 
                        section.
                            ``(ii) Exception.--Clause (i) shall not 
                        apply with respect to any commodities owned and 
                        held in inventory by the Commodity Credit 
                        Corporation (accumulated pursuant to the 
                        program authorized under section 156 of the 
                        Federal Agriculture Improvement and Reform Act 
                        (7 U.S.C. 7272)).
                    ``(C) Option to prevent storage fees.--
                            ``(i) In general.--The Secretary may enter 
                        into contracts with bioenergy producers to sell 
                        eligible commodities to such producers prior in 
                        time to entering into contracts with eligible 
                        entities to purchase the eligible commodities 
                        to be used to satisfy the contracts entered 
                        into with the bioenergy producers.
                            ``(ii) Special transfer rule.--If the 
                        Secretary makes a sale and purchase referred to 
                        in clause (i), the Secretary shall ensure that 
                        the bioenergy producer that purchased eligible 
                        commodities takes possession of such 
                        commodities within 30 calendar days of the date 
                        the Commodity Credit Corporation purchases the 
                        eligible commodities.
            ``(5) Relation to other laws.--If sugar that is subject to 
        a marketing allotment under part VII of subtitle B of title III 
        of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et 
        seq.) is the subject of a payment under this section, the sugar 
        shall be considered marketed and shall count against a 
        processor's allocation of an allotment under such part, as 
        applicable.
            ``(6) Funding.--The Secretary shall use the funds, 
        facilities, and authorities of the Commodity Credit 
        Corporation, including the use of such sums as are necessary, 
        to carry out this section.

``SEC. 9011. BIOMASS CROP ASSISTANCE PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) BCAP.--The term `BCAP' means the Biomass Crop 
        Assistance Program established under this section.
            ``(2) BCAP project area.--The term `BCAP project area' 
        means an area that--
                    ``(A) has specified boundaries that are submitted 
                to the Secretary by the project sponsor and 
                subsequently approved by the Secretary;
                    ``(B) includes producers with contract acreage that 
                will supply a portion of the renewable biomass needed 
                by a biomass conversion facility; and
                    ``(C) is physically located within an economically 
                practicable distance from the biomass conversion 
                facility.
            ``(3) Contract acreage.--The term `contract acreage' means 
        eligible land that is covered by a BCAP contract entered into 
        with the Secretary.
            ``(4) Eligible crop.--
                    ``(A) In general.--The term `eligible crop' means a 
                crop of renewable biomass.
                    ``(B) Exclusions.--The term `eligible crop' does 
                not include--
                            ``(i) any crop that is eligible to receive 
                        payments under title I of the Food, 
                        Conservation, and Energy Act of 2008 or an 
                        amendment made by that title; or
                            ``(ii) any plant that is invasive or 
                        noxious or has the potential to become invasive 
                        or noxious, as determined by the Secretary, in 
                        consultation with other appropriate Federal or 
                        State departments and agencies.
            ``(5) Eligible land.--
                    ``(A) In general.--The term `eligible land' 
                includes agricultural and nonindustrial private forest 
                lands (as defined in section 5(c) of the Cooperative 
                Forestry Assistance Act of 1978 (16 U.S.C. 2103a(c))).
                    ``(B) Exclusions.--The term `eligible land' does 
                not include--
                            ``(i) Federal- or State-owned land;
                            ``(ii) land that is native sod, as of the 
                        date of enactment of the Food, Conservation, 
                        and Energy Act of 2008;
                            ``(iii) land enrolled in the conservation 
                        reserve program established under subchapter B 
                        of chapter 1 of subtitle D of title XII of the 
                        Food Security Act of 1985 (16 U.S.C. 3831 et 
                        seq.);
                            ``(iv) land enrolled in the wetlands 
                        reserve program established under subchapter C 
                        of chapter 1 of subtitle D of title XII of that 
                        Act (16 U.S.C. 3837 et seq.); or
                            ``(v) land enrolled in the grassland 
                        reserve program established under subchapter D 
                        of chapter 2 of subtitle D of title XII of that 
                        Act (16 U.S.C. 3838n et seq.).
            ``(6) Eligible material.--
                    ``(A) In general.--The term `eligible material' 
                means renewable biomass.
                    ``(B) Exclusions.--The term `eligible material' 
                does not include--
                            ``(i) any crop that is eligible to receive 
                        payments under title I of the Food, 
                        Conservation, and Energy Act of 2008 or an 
                        amendment made by that title;
                            ``(ii) animal waste and byproducts 
                        (including fats, oils, greases, and manure);
                            ``(iii) food waste and yard waste; or
                            ``(iv) algae.
            ``(7) Producer.--The term `producer' means an owner or 
        operator of contract acreage that is physically located within 
        a BCAP project area.
            ``(8) Project sponsor.--The term `project sponsor' means--
                    ``(A) a group of producers; or
                    ``(B) a biomass conversion facility.
    ``(b) Establishment and Purpose.--The Secretary shall establish and 
administer a Biomass Crop Assistance Program to--
            ``(1) support the establishment and production of eligible 
        crops for conversion to bioenergy in selected BCAP project 
        areas; and
            ``(2) assist agricultural and forest land owners and 
        operators with collection, harvest, storage, and transportation 
        of eligible material for use in a biomass conversion facility.
    ``(c) BCAP Project Area.--
            ``(1) In general.--The Secretary shall provide financial 
        assistance to producers of eligible crops in a BCAP project 
        area.
            ``(2) Selection of project areas.--
                    ``(A) In general.--To be considered for selection 
                as a BCAP project area, a project sponsor shall submit 
                to the Secretary a proposal that includes, at a 
                minimum--
                            ``(i) a description of the eligible land 
                        and eligible crops of each producer that will 
                        participate in the proposed BCAP project area;
                            ``(ii) a letter of commitment from a 
                        biomass conversion facility that the facility 
                        will use the eligible crops intended to be 
                        produced in the proposed BCAP project area;
                            ``(iii) evidence that the biomass 
                        conversion facility has sufficient equity 
                        available, as determined by the Secretary, if 
                        the biomass conversion facility is not 
                        operational at the time the proposal is 
                        submitted to the Secretary; and
                            ``(iv) any other appropriate information 
                        about the biomass conversion facility or 
                        proposed biomass conversion facility that gives 
                        the Secretary a reasonable assurance that the 
                        plant will be in operation by the time that the 
                        eligible crops are ready for harvest.
                    ``(B) BCAP project area selection criteria.--In 
                selecting BCAP project areas, the Secretary shall 
                consider--
                            ``(i) the volume of the eligible crops 
                        proposed to be produced in the proposed BCAP 
                        project area and the probability that such 
                        crops will be used for the purposes of the 
                        BCAP;
                            ``(ii) the volume of renewable biomass 
                        projected to be available from sources other 
                        than the eligible crops grown on contract 
                        acres;
                            ``(iii) the anticipated economic impact in 
                        the proposed BCAP project area;
                            ``(iv) the opportunity for producers and 
                        local investors to participate in the ownership 
                        of the biomass conversion facility in the 
                        proposed BCAP project area;
                            ``(v) the participation rate by--
                                    ``(I) beginning farmers or ranchers 
                                (as defined in accordance with section 
                                343(a) of the Consolidated Farm and 
                                Rural Development Act (7 U.S.C. 
                                1991(a))); or
                                    ``(II) socially disadvantaged 
                                farmers or ranchers (as defined in 
                                section 2501(e) of the Food, 
                                Agriculture, Conservation, and Trade 
                                Act of 1990 (7 U.S.C. 2279(e)));
                            ``(vi) the impact on soil, water, and 
                        related resources;
                            ``(vii) the variety in biomass production 
                        approaches within a project area, including (as 
                        appropriate)--
                                    ``(I) agronomic conditions;
                                    ``(II) harvest and postharvest 
                                practices; and
                                    ``(III) monoculture and polyculture 
                                crop mixes;
                            ``(viii) the range of eligible crops among 
                        project areas; and
                            ``(ix) any additional information, as 
                        determined by the Secretary.
            ``(3) Contract.--
                    ``(A) In general.--On approval of a BCAP project 
                area by the Secretary, each producer in the BCAP 
                project area shall enter into a contract directly with 
                the Secretary.
                    ``(B) Minimum terms.--At a minimum, contracts shall 
                include terms that cover--
                            ``(i) an agreement to make available to the 
                        Secretary, or to an institution of higher 
                        education or other entity designated by the 
                        Secretary, such information as the Secretary 
                        considers to be appropriate to promote the 
                        production of eligible crops and the 
                        development of biomass conversion technology;
                            ``(ii) compliance with the highly erodible 
                        land conservation requirements of subtitle B of 
                        title XII of the Food Security Act of 1985 (16 
                        U.S.C. 3811 et seq.) and the wetland 
                        conservation requirements of subtitle C of 
                        title XII of that Act (16 U.S.C. 3821 et seq.);
                            ``(iii) the implementation of (as 
                        determined by the Secretary)--
                                    ``(I) a conservation plan; or
                                    ``(II) a forest stewardship plan or 
                                an equivalent plan; and
                            ``(iv) any additional requirements the 
                        Secretary considers appropriate.
                    ``(C) Duration.--A contract under this subsection 
                shall have a term of up to--
                            ``(i) 5 years for annual and perennial 
                        crops; or
                            ``(ii) 15 years for woody biomass.
            ``(4) Relationship to other programs.--In carrying out this 
        subsection, the Secretary shall provide for the preservation of 
        cropland base and yield history applicable to the land enrolled 
        in a BCAP contract.
            ``(5) Payments.--
                    ``(A) In general.--The Secretary shall make 
                establishment and annual payments directly to producers 
                to support the establishment and production of eligible 
                crops on contract acreage.
                    ``(B) Amount of establishment payments.--The amount 
                of an establishment payment under this subsection shall 
                be up to 75 percent of the costs of establishing an 
                eligible perennial crop covered by the contract, 
                including--
                            ``(i) the cost of seeds and stock for 
                        perennials;
                            ``(ii) the cost of planting the perennial 
                        crop, as determined by the Secretary; and
                            ``(iii) in the case of nonindustrial 
                        private forestland, the costs of site 
                        preparation and tree planting.
                    ``(C) Amount of annual payments.--
                            ``(i) In general.--Subject to clause (ii), 
                        the amount of an annual payment under this 
                        subsection shall be determined by the 
                        Secretary.
                            ``(ii) Reduction.--The Secretary shall 
                        reduce an annual payment by an amount 
                        determined to be appropriate by the Secretary, 
                        if--
                                    ``(I) an eligible crop is used for 
                                purposes other than the production of 
                                energy at the biomass conversion 
                                facility;
                                    ``(II) an eligible crop is 
                                delivered to the biomass conversion 
                                facility;
                                    ``(III) the producer receives a 
                                payment under subsection (d);
                                    ``(IV) the producer violates a term 
                                of the contract; or
                                    ``(V) there are such other 
                                circumstances, as determined by the 
                                Secretary to be necessary to carry out 
                                this section.
    ``(d) Assistance With Collection, Harvest, Storage, and 
Transportation.--
            ``(1) In general.--The Secretary shall make a payment for 
        the delivery of eligible material to a biomass conversion 
        facility to--
                    ``(A) a producer of an eligible crop that is 
                produced on BCAP contract acreage; or
                    ``(B) a person with the right to collect or harvest 
                eligible material.
            ``(2) Payments.--
                    ``(A) Costs covered.--A payment under this 
                subsection shall be in an amount described in 
                subparagraph (B) for--
                            ``(i) collection;
                            ``(ii) harvest;
                            ``(iii) storage; and
                            ``(iv) transportation to a biomass 
                        conversion facility.
                    ``(B) Amount.--Subject to paragraph (3), the 
                Secretary may provide matching payments at a rate of $1 
                for each $1 per ton provided by the biomass conversion 
                facility, in an amount equal to not more than $45 per 
                ton for a period of 2 years.
            ``(3) Limitation on assistance for bcap contract acreage.--
        As a condition of the receipt of annual payment under 
        subsection (c), a producer receiving a payment under this 
        subsection for collection, harvest, storage or transportation 
        of an eligible crop produced on BCAP acreage shall agree to a 
        reduction in the annual payment.
    ``(e) Report.--Not later than 4 years after the date of enactment 
of the Food, Conservation, and Energy Act of 2008, the Secretary shall 
submit to the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry of the Senate 
a report on the dissemination by the Secretary of the best practice 
data and information gathered from participants receiving assistance 
under this section.
    ``(f) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section such sums as are 
necessary for each of fiscal years 2008 through 2012.

``SEC. 9012. FOREST BIOMASS FOR ENERGY.

    ``(a) In General.--The Secretary, acting through the Forest 
Service, shall conduct a competitive research and development program 
to encourage use of forest biomass for energy.
    ``(b) Eligible Entities.--Entities eligible to compete under the 
program under this section include--
            ``(1) the Forest Service (acting through Research and 
        Development);
            ``(2) other Federal agencies;
            ``(3) State and local governments;
            ``(4) Indian tribes;
            ``(5) land-grant colleges and universities; and
            ``(6) private entities.
    ``(c) Priority for Project Selection.--In carrying out this 
section, the Secretary shall give priority to projects that--
            ``(1) develop technology and techniques to use low-value 
        forest biomass, such as byproducts of forest health treatments 
        and hazardous fuels reduction, for the production of energy;
            ``(2) develop processes that integrate production of energy 
        from forest biomass into biorefineries or other existing 
        manufacturing streams;
            ``(3) develop new transportation fuels from forest biomass; 
        and
            ``(4) improve the growth and yield of trees intended for 
        renewable energy production.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $15,000,000 for each of fiscal 
years 2009 through 2012.

``SEC. 9013. COMMUNITY WOOD ENERGY PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Community wood energy plan.--The term `community wood 
        energy plan' means an assessment of--
                    ``(A) available feedstocks necessary to supply a 
                community wood energy system; and
                    ``(B) the long-term feasibility of supplying and 
                operating a community wood energy system.
            ``(2) Community wood energy system.--
                    ``(A) In general.--The term `community wood energy 
                system' means an energy system that--
                            ``(i) primarily services public facilities 
                        owned or operated by State or local 
                        governments, including schools, town halls, 
                        libraries, and other public buildings; and
                            ``(ii) uses woody biomass as the primary 
                        fuel.
                    ``(B) Inclusions.--The term `community wood energy 
                system' includes single facility central heating, 
                district heating, combined heat and energy systems, and 
                other related biomass energy systems.
    ``(b) Grant Program.--
            ``(1) In general.--The Secretary, acting through the Chief 
        of the Forest Service, shall establish a program to be known as 
        the `Community Wood Energy Program' to provide--
                    ``(A) grants of up to $50,000 to State and local 
                governments (or designees) to develop community wood 
                energy plans; and
                    ``(B) competitive grants to State and local 
                governments to acquire or upgrade community wood energy 
                systems.
            ``(2) Considerations.--In selecting applicants for grants 
        under paragraph (1)(B), the Secretary shall consider--
                    ``(A) the energy efficiency of the proposed system;
                    ``(B) the cost effectiveness of the proposed 
                system; and
                    ``(C) other conservation and environmental criteria 
                that the Secretary considers appropriate.
            ``(3) Use of plan.--A State or local government applying to 
        receive a competitive grant described in paragraph (1)(B) shall 
        submit to the Secretary as part of the grant application the 
        applicable community wood energy plan.
    ``(c) Limitation.--A community wood energy system acquired with 
grant funds provided under subsection (b)(1)(B) shall not exceed an 
output of--
            ``(1) 50,000,000 Btu per hour for heating; and
            ``(2) 2 megawatts for electric power production.
    ``(d) Matching Funds.--A State or local government that receives a 
grant under subsection (b) shall contribute an amount of non-Federal 
funds towards the development of the community wood energy plan, or 
acquisition of the community wood energy systems that is at least equal 
to the amount of grant funds received by the State or local government 
under that subsection.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2009 through 2012.''.
    (b) Conforming Amendment.--The Biomass Research and Development Act 
of 2000 (7 U.S.C. 8601 et seq.) is repealed.

SEC. 9002. BIOFUELS INFRASTRUCTURE STUDY.

    (a) In General.--The Secretary of Agriculture, the Secretary of 
Energy, the Administrator of the Environmental Protection Agency, and 
the Secretary of Transportation (referred to in this section as the 
``Secretaries''), shall jointly conduct a study that includes--
            (1) an assessment of the infrastructure needs for expanding 
        the domestic production, transport, and distribution of 
        biofuels given current and likely future market trends;
            (2) recommendations for infrastructure needs and 
        development approaches, taking into account cost and other 
        associated factors; and
            (3) a report that includes--
                    (A) a summary of infrastructure needs;
                    (B) an analysis of alternative development 
                approaches to meeting the needs described in 
                subparagraph (A), including cost, siting, and other 
                regulatory issues; and
                    (C) recommendations for specific infrastructure 
                development actions to be taken.
    (b) Scope of Study.--
            (1) In general.--In conducting the study described in 
        subsection (a), the Secretaries shall address--
                    (A) current and likely future market trends for 
                biofuels through calendar year 2025;
                    (B) current and future availability of feedstocks;
                    (C) water resource needs, including water 
                requirements for biorefineries;
                    (D) shipping and storage needs for biomass 
                feedstock and biofuels, including the adequacy of rural 
                roads; and
                    (E) modes of transportation and delivery for 
                biofuels (including shipment by rail, truck, pipeline 
                or barge) and associated infrastructure issues.
            (2) Considerations.--In addressing the issues described in 
        paragraph (1), the Secretaries shall consider--
                    (A) the effects of increased tank truck, rail, and 
                barge transport on existing infrastructure and safety;
                    (B) the feasibility of shipping biofuels through 
                pipelines in existence as the date of enactment of this 
                Act;
                    (C) the development of new biofuels pipelines, 
                including siting, financing, timing, and other economic 
                issues;
                    (D) the implications of various biofuel blend 
                levels on infrastructure needs;
                    (E) the implications of various approaches to 
                infrastructure development on resource use and 
                conservation;
                    (F) regional differences in biofuels infrastructure 
                needs; and
                    (G) other infrastructure issues, as determined by 
                the Secretaries.
    (c) Implementation.--In carrying out this section, the Secretaries 
--
            (1) shall--
                    (A) consult with individuals and entities with 
                interest or expertise in the areas described in 
                subsection (b);
                    (B) to the extent available, use the information 
                developed and results of the related studies authorized 
                under sections 243 and 245 of the Energy Independence 
                and Security Act of 2007 (Public Law 110-140; 121 Stat. 
                1540, 1546)); and
                    (C) submit to Congress the report required under 
                subsection (a)(3), including--
                            (i) in the Senate--
                                    (I) the Committee on Agriculture, 
                                Nutrition, and Forestry ;
                                    (II) the Committee on Commerce, 
                                Science, and Transportation;
                                    (III) the Committee on Energy and 
                                Natural Resources; and
                                    (IV) the Committee on Environment 
                                and Public Works; and
                            (ii) in the House of Representatives--
                                    (I) the Committee on Agriculture;
                                    (II) the Committee on Energy and 
                                Commerce;
                                    (III) the Committee on 
                                Transportation and Infrastructure; and
                                    (IV) the Committee on Science and 
                                Technology; and
            (2) may issue a solicitation for a competition to select a 
        contractor to support the Secretaries.

SEC. 9003. RENEWABLE FERTILIZER STUDY.

    (a) In General.--Not later than 1 year after the date of receipt of 
appropriations to carry out this section, the Secretary shall--
            (1) conduct a study to assess the current state of 
        knowledge regarding the potential for the production of 
        fertilizer from renewable energy sources in rural areas, 
        including--
                    (A) identification of the critical challenges to 
                commercialization of rural production of nitrogen and 
                phosphorus-based fertilizer from renewables;
                    (B) the most promising processes and technologies 
                for renewable fertilizer production;
                    (C) the potential cost-competitiveness of renewable 
                fertilizer; and
                    (D) the potential impacts of renewable fertilizer 
                on fossil fuel use and the environment; and
            (2) submit to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate a report describing the results of 
        the study.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $1,000,000 for fiscal year 2009.

             TITLE X--HORTICULTURE AND ORGANIC AGRICULTURE

SEC. 10001. DEFINITIONS.

    In this title:
            (1) Specialty crop.--The term ``specialty crop'' has the 
        meaning given the term in section 3 of the Specialty Crops 
        Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 
        108-465).
            (2) State department of agriculture.--The term ``State 
        department of agriculture'' means the agency, commission, or 
        department of a State government responsible for protecting and 
        promoting agriculture in the State.

           Subtitle A--Horticulture Marketing and Information

SEC. 10101. INDEPENDENT EVALUATION OF DEPARTMENT OF AGRICULTURE 
              COMMODITY PURCHASE PROCESS.

    (a) Evaluation Required.--The Secretary shall arrange to have 
performed an independent evaluation of the purchasing processes 
(including the budgetary, statutory, and regulatory authority 
underlying the processes) used by the Department of Agriculture to 
implement the requirement that funds available under section 32 of the 
Act of August 24, 1935 (7 U.S.C. 612c), shall be principally devoted to 
perishable agricultural commodities.
    (b) Submission of Results.--Not later than 18 months after the date 
of the enactment of this Act, the Secretary shall submit to the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate a 
report on the results of the evaluation.

SEC. 10102. QUALITY REQUIREMENTS FOR CLEMENTINES.

    Section 8e(a) of the Agricultural Adjustment Act (7 U.S.C. 608e-
1(a)), reenacted with amendments by the Agricultural Marketing 
Agreement Act of 1937, is amended in the matter preceding the first 
proviso in the first sentence by inserting ``clementines,'' after 
``nectarines,''.

SEC. 10103. INCLUSION OF SPECIALTY CROPS IN CENSUS OF AGRICULTURE.

    Section 2(a) of the Census of Agriculture Act of 1997 (7 U.S.C. 
2204g(a)) is amended--
            (1) by striking ``In 1998'' and inserting the following:
            ``(1) In general.--In 1998''; and
            (2) by adding at the end the following:
            ``(2) Inclusion of specialty crops.--Effective beginning 
        with the census of agriculture required to be conducted in 
        2008, the Secretary shall conduct as part of each census of 
        agriculture a census of specialty crops (as that term is 
        defined in section 3 of the Specialty Crops Competitiveness Act 
        of 2004 (7 U.S.C. 1621 note; Public Law 108-465)).''.

SEC. 10104. MUSHROOM PROMOTION, RESEARCH, AND CONSUMER INFORMATION.

    (a) Regions and Members.--Section 1925(b)(2) of the Mushroom 
Promotion, Research, and Consumer Information Act of 1990 (7 U.S.C. 
6104(b)(2)) is amended--
            (1) in subparagraph (B), by striking ``4 regions'' and 
        inserting ``3 regions'';
            (2) in subparagraph (D), by striking ``35,000,000 pounds'' 
        and inserting ``50,000,000 pounds''; and
            (3) by striking subparagraph (E) and inserting the 
        following:
                    ``(E) Additional members.--In addition to the 
                members appointed pursuant to paragraph (1), and 
                subject to the 9-member limit of members on the Council 
                provided in that paragraph, the Secretary shall appoint 
                additional members to the council from a region that 
                attains additional pounds of production as follows:
                            ``(i) If the annual production of a region 
                        is greater than 110,000,000 pounds, but less 
                        than or equal to 180,000,000 pounds, the region 
                        shall be represented by 1 additional member.
                            ``(ii) If the annual production of a region 
                        is greater than 180,000,000 pounds, but less 
                        than or equal to 260,000,000 pounds, the region 
                        shall be represented by 2 additional members.
                            ``(iii) If the annual production of a 
                        region is greater than 260,000,000 pounds, the 
                        region shall be represented by 3 additional 
                        members.''.
    (b) Powers and Duties of Council.--Section 1925(c) of the Mushroom 
Promotion, Research, and Consumer Information Act of 1990 (7 U.S.C. 
6104(c)) is amended--
            (1) by redesignating paragraphs (6), (7), and (8) as 
        paragraphs (7), (8), and (9), respectively; and
            (2) by inserting after paragraph (5) the following:
            ``(6) to develop and propose to the Secretary programs for 
        good agricultural and good handling practices and related 
        activities for mushrooms;''.

SEC. 10105. FOOD SAFETY EDUCATION INITIATIVES.

    (a) Initiative Authorized.--The Secretary may carry out a food 
safety education program to educate the public and persons in the fresh 
produce industry about--
            (1) scientifically proven practices for reducing microbial 
        pathogens on fresh produce; and
            (2) methods of reducing the threat of cross-contamination 
        of fresh produce through sanitary handling practices.
    (b) Cooperation.--The Secretary may carry out the education program 
in cooperation with public and private partners.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $1,000,000 for 
each of fiscal years 2008 through 2012, to remain available until 
expended.

SEC. 10106. FARMERS' MARKET PROMOTION PROGRAM.

    Section 6 of the Farmer-to-Consumer Direct Marketing Act of 1976 (7 
U.S.C. 3005) is amended--
            (1) in subsection (a), by inserting ``and to promote direct 
        producer-to-consumer marketing'' before the period at the end;
            (2) in subsection (b)(1)--
                    (A) in subparagraph (A), by inserting ``agri-
                tourism activities,'' after ``programs,''; and
                    (B) in subparagraph (B)--
                            (i) by inserting ``agri-tourism 
                        activities,'' after ``programs,'' and
                            (ii) by striking ``infrastructure'' and 
                        inserting ``marketing opportunities'';
            (3) in subsection (c)(1), by inserting ``or a producer 
        network or association'' after ``cooperative''; and
            (4) by striking subsection (e) and inserting the following:
    ``(e) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use to carry out this 
        section--
                    ``(A) $3,000,000 for fiscal year 2008;
                    ``(B) $5,000,000 for each of fiscal years 2009 
                through 2010; and
                    ``(C) $10,000,000 for each of fiscal years 2011 and 
                2012.
            ``(2) Use of funds.--Not less than 10 percent of the funds 
        used to carry out this section in a fiscal year under paragraph 
        (1) shall be used to support the use of electronic benefits 
        transfers for Federal nutrition programs at farmers' markets.
            ``(3) Interdepartmental coordination.--In carrying out this 
        subsection, the Secretary shall ensure coordination between the 
        various agencies to the maximum extent practicable.
            ``(4) Limitation.--Funds described in paragraph (2)--
                    ``(A) may not be used for the ongoing cost of 
                carrying out any project; and
                    ``(B) shall only be provided to eligible entities 
                that demonstrate a plan to continue to provide EBT card 
                access at 1 or more farmers' markets following the 
                receipt of the grant.''.

SEC. 10107. SPECIALTY CROPS MARKET NEWS ALLOCATION.

    (a) In General.--The Secretary shall--
            (1) carry out market news activities to provide timely 
        price and shipment information of specialty crops in the United 
        States; and
            (2) use funds made available under subsection (b) to 
        increase the reporting levels for specialty crops in effect on 
        the date of enactment of this Act.
    (b) Authorization of Appropriations.--In addition to any other 
funds made available through annual appropriations for market news 
services, there is authorized to be appropriated to carry out this 
section $9,000,000 for each of fiscal years 2008 through 2012, to 
remain available until expended.

SEC. 10108. EXPEDITED MARKETING ORDER FOR HASS AVOCADOS FOR GRADES AND 
              STANDARDS AND OTHER PURPOSES.

    (a) In General.--The Secretary shall initiate procedures under the 
Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with 
amendments by the Agricultural Marketing Agreement Act of 1937, to 
determine whether it would be appropriate to establish a Federal 
marketing order for Hass avocados relating to grades and standards and 
for other purposes under that Act.
    (b) Expedited Procedures.--
            (1) Proposal for an order.--An organization of domestic 
        avocado producers in existence on the date of enactment of this 
        Act may request the issuance of, and submit to the Secretary a 
        proposal for, an order described in subsection (a).
            (2) Publication of proposal.--Not later than 60 days after 
        the date on which the Secretary receives a proposed order under 
        paragraph (1), the Secretary shall initiate procedures 
        described in subsection (a) to determine whether the proposed 
        order should proceed.
    (c) Effective Date.--Any order issued under this section shall 
become effective not later than 15 months after the date on which the 
Secretary initiates procedures under the Agricultural Adjustment Act (7 
U.S.C. 601 et seq.), reenacted with amendments by the Agricultural 
Marketing Agreement Act of 1937.

SEC. 10109. SPECIALTY CROP BLOCK GRANTS.

    (a) Definition of Specialty Crop.--Section 3(1) of the Specialty 
Crops Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 1621 
note) is amended by inserting ``horticulture and'' before ``nursery''.
    (b) Definition of State.--Section 3(2) of the Specialty Crops 
Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 1621 note) is 
amended by striking ``and the Commonwealth of Puerto Rico'' and 
inserting ``the Commonwealth of Puerto Rico, Guam, American Samoa, the 
United States Virgin Islands, and the Commonwealth of the Northern 
Mariana Islands''.
    (c) Specialty Crop Block Grants.--Section 101 of the Specialty 
Crops Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 1621 
note) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Subject to the appropriation of 
                funds to carry out this section'' and inserting ``Using 
                the funds made available under subsection (j)''; and
                    (B) by striking ``2009'' and inserting ``2012'';
            (2) in subsection (b), by striking ``appropriated pursuant 
        to the authorization of appropriations in subsection (i)'' and 
        inserting ``made available under subsection (j)'';
            (3) by striking subsection (c) and inserting the following:
    ``(c) Minimum Grant Amount.--Notwithstanding subsection (b), each 
State shall receive a grant under this section for each fiscal year in 
an amount that is at least equal to the higher of--
            ``(1) $100,000; or
            ``(2) \1/3\ of 1 percent of the total amount of funding 
        made available to carry out this section for the fiscal 
        year.''; and
            (4) by striking subsection (i) and inserting the following:
    ``(i) Reallocation.--
            ``(1) In general.--The Secretary shall reallocate to other 
        States in accordance with paragraph (2) any amounts made 
        available for a fiscal year under this section that are not 
        obligated or expended by a date during that fiscal year 
        determined by the Secretary.
            ``(2) Pro rata allocation.--The Secretary shall allocate 
        funds described in paragraph (1) pro rata to the remaining 
        States that applied during the specified grant application 
        period.
            ``(3) Use of reallocated funds.--Funds allocated to a State 
        under this subsection shall be used by the State only to carry 
        out projects that were previously approved in the State plan of 
        the State.
    ``(j) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary of Agriculture shall make grants under this section, 
using--
            ``(1) $10,000,000 for fiscal year 2008;
            ``(2) $49,000,000 for fiscal year 2009; and
            ``(3) $55,000,000 for each of fiscal years 2010 through 
        2012.''.

                Subtitle B--Pest and Disease Management

SEC. 10201. PLANT PEST AND DISEASE MANAGEMENT AND DISASTER PREVENTION.

    (a) In General.--Subtitle A of the Plant Protection Act (7 U.S.C. 
7711 et seq.) is amended by adding at the end the following:

``SEC. 420. PLANT PEST AND DISEASE MANAGEMENT AND DISASTER PREVENTION.

    ``(a) Definitions.--In this section:
            ``(1) Early plant pest detection and surveillance.--The 
        term `early plant pest detection and surveillance' means the 
        full range of activities undertaken to find newly introduced 
        plant pests, whether the plant pests are new to the United 
        States or new to certain areas of the United States, before--
                    ``(A) the plant pests become established; or
                    ``(B) the plant pest infestations become too large 
                and costly to eradicate or control.
            ``(2) Specialty crop.--The term `specialty crop' has the 
        meaning given the term in section 3 of the Specialty Crops 
        Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 
        108-465).
            ``(3) State department of agriculture.--The term `State 
        department of agriculture' means an agency of a State that has 
        a legal responsibility to perform early plant pest detection 
        and surveillance activities.
    ``(b) Early Plant Pest Detection and Surveillance Improvement 
Program.--
            ``(1) Cooperative agreements.--The Secretary shall enter 
        into a cooperative agreement with each State department of 
        agriculture that agrees to conduct early plant pest detection 
        and surveillance activities.
            ``(2) Consultation.--In carrying out this subsection, the 
        Secretary shall consult with--
                    ``(A) the National Plant Board; and
                    ``(B) other interested parties.
            ``(3) Federal advisory committee act.--The Federal Advisory 
        Committee Act (5 U.S.C. App.) shall not apply to consultations 
        under this subsection.
            ``(4) Application.--
                    ``(A) In general.--A State department of 
                agriculture seeking to enter into a cooperative 
                agreement under this subsection shall submit to the 
                Secretary an application containing such information as 
                the Secretary may require.
                    ``(B) Notification.--The Secretary shall notify 
                applicants of--
                            ``(i) the requirements to be imposed on a 
                        State department of agriculture for auditing 
                        of, and reporting on, the use of any funds 
                        provided by the Secretary under the cooperative 
                        agreement;
                            ``(ii) the criteria to be used to ensure 
                        that early pest detection and surveillance 
                        activities supported under the cooperative 
                        agreement are based on sound scientific data or 
                        thorough risk assessments; and
                            ``(iii) the means of identifying pathways 
                        of pest introductions.
            ``(5) Use of funds.--
                    ``(A) Plant pest detection and surveillance 
                activities.--A State department of agriculture that 
                receives funds under this subsection shall use the 
                funds to carry out early plant pest detection and 
                surveillance activities approved by the Secretary to 
                prevent the introduction or spread of a plant pest.
                    ``(B) Subagreements.--Nothing in this subsection 
                prevents a State department of agriculture from using 
                funds received under paragraph (4) to enter into 
                subagreements with political subdivisions of the State 
                that have legal responsibilities relating to 
                agricultural plant pest and disease surveillance.
                    ``(C) Non-federal share.--The non-Federal share of 
                the cost of carrying out a cooperative agreement under 
                this section may be provided in-kind, including through 
                provision of such indirect costs of the cooperative 
                agreement as the Secretary considers to be appropriate.
                    ``(D) Ability to provide funds.--The Secretary 
                shall not take the ability to provide non-Federal costs 
                to carry out a cooperative agreement entered into under 
                subparagraph (A) into consideration when deciding 
                whether to enter into a cooperative agreement with a 
                State department of agriculture.
            ``(6) Special funding considerations.--The Secretary shall 
        provide funds to a State department of agriculture if the 
        Secretary determines that--
                    ``(A) the State department of agriculture is in a 
                State that has a high risk of being affected by 1 or 
                more plant pests or diseases, taking into 
                consideration--
                            ``(i) the number of international ports of 
                        entry in the State;
                            ``(ii) the volume of international 
                        passenger and cargo entry into the State;
                            ``(iii) the geographic location of the 
                        State and if the location or types of 
                        agricultural commodities produced in the State 
                        are conducive to agricultural pest and disease 
                        establishment due to the climate, crop 
                        diversity, or natural resources (including 
                        unique plant species) of the State; and
                            ``(iv) whether the Secretary has determined 
                        that an agricultural pest or disease in the 
                        State is a Federal concern ; and
                    ``(B) the early plant pest detection and 
                surveillance activities supported with the funds will 
                likely--
                            ``(i) prevent the introduction and 
                        establishment of plant pests; and
                            ``(ii) provide a comprehensive approach to 
                        compliment Federal detection efforts.
            ``(7) Reporting requirement.--Not later than 90 days after 
        the date of completion of an early plant pest detection and 
        surveillance activity conducted by a State department of 
        agriculture using funds provided under this section, the State 
        department of agriculture shall submit to the Secretary a 
        report that describes the purposes and results of the 
        activities.
    ``(c) Threat Identification and Mitigation Program.--
            ``(1) Establishment.--The Secretary shall establish a 
        threat identification and mitigation program to determine and 
        address threats to the domestic production of crops.
            ``(2) Requirements.--In conducting the program established 
        under paragraph (1), the Secretary shall--
                    ``(A) develop risk assessments of the potential 
                threat to the agricultural industry of the United 
                States from foreign sources;
                    ``(B) collaborate with the National Plant Board; 
                and
                    ``(C) implement action plans for high consequence 
                plant pest and diseases to assist in preventing the 
                introduction and widespread dissemination of new plant 
                pest and disease threats in the United States.
            ``(3) Reports.--Not later than 1 year after the date of 
        enactment of this paragraph, and annually thereafter, the 
        Secretary shall submit to the Committee on Agriculture of the 
        House of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report on the action 
        plans described in paragraph (2), including an accounting of 
        funds expended on the action plans.
    ``(d) Specialty Crop Certification and Risk Management Systems.--
The Secretary shall provide funds and technical assistance to specialty 
crop growers, organizations representing specialty crop growers, and 
State and local agencies working with specialty crop growers and 
organizations for the development and implementation of--
            ``(1) audit-based certification systems, such as best 
        management practices--
                    ``(A) to address plant pests; and
                    ``(B) to mitigate the risk of plant pests in the 
                movement of plants and plant products; and
            ``(2) nursery plant pest risk management systems, in 
        collaboration with the nursery industry, research institutions, 
        and other appropriate entities--
                    ``(A) to enable growers to identify and prioritize 
                nursery plant pests and diseases of regulatory 
                significance;
                    ``(B) to prevent the introduction, establishment, 
                and spread of those plant pests and diseases; and
                    ``(C) to reduce the risk of and mitigate those 
                plant pests and diseases.
    ``(e) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall make available to carry out this section--
            ``(1) $12,000,000 for fiscal year 2009;
            ``(2) $45,000,000 for fiscal year 2010;
            ``(3) $50,000,000 for fiscal year 2011; and
            ``(4) $50,000,000 for fiscal year 2012 and each fiscal year 
        thereafter.''.
    (b) Congressional Disapproval.--Congress disapproves the rule 
submitted by the Secretary of Agriculture relating to cost-sharing for 
animal and plant health emergency programs (68 Fed. Reg. 40541 (2003)), 
and such rule shall have no force or effect.

SEC. 10202. NATIONAL CLEAN PLANT NETWORK.

    (a) In General.--The Secretary shall establish a program to be 
known as the ``National Clean Plant Network'' (referred to in this 
section as the ``Program'').
    (b) Requirements.--Under the Program, the Secretary shall establish 
a network of clean plant centers for diagnostic and pathogen 
elimination services to--
            (1) produce clean propagative plant material; and
            (2) maintain blocks of pathogen-tested plant material in 
        sites located throughout the United States.
    (c) Availability of Clean Plant Source Material.--Clean plant 
source material may be made available to--
            (1) a State for a certified plant program of the State; and
            (2) private nurseries and producers.
    (d) Consultation and Collaboration.--In carrying out the Program, 
the Secretary shall--
            (1) consult with State departments of agriculture, land 
        grant universities, and NLGCA Institutions (as defined in 
        section 1404 of the National Agricultural Research, Extension, 
        and Teaching Policy Act of 1977 (7 U.S.C. 3103)); and
            (2) to the extent practicable and with input from the 
        appropriate State officials and industry representatives, use 
        existing Federal or State facilities to serve as clean plant 
        centers.
    (e) Funding.--Of the funds of the Commodity Credit Corporation, the 
Secretary shall use to carry out the Program $5,000,000 for each of 
fiscal years 2009 through 2012, to remain available until expended.

SEC. 10203. PLANT PROTECTION.

    (a) Review of Payment of Compensation.--Section 415(e) of the Plant 
Protection Act (7 U.S.C. 7715(e)) is amended in the second sentence by 
striking ``of longer than 60 days''.
    (b) Secretarial Discretion.--Section 442(c) of the Plant Protection 
Act (7 U.S.C. 7772(c)) is amended by striking ``of longer than 60 
days''.
    (c) Subpoena Authority.--Section 423 of the Plant Protection Act (7 
U.S.C. 7733) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Authority to Issue.--The Secretary shall have the power to 
subpoena the attendance and testimony of any witness, the production of 
all evidence (including books, papers, documents, electronically stored 
information, and other tangible things that constitute or contain 
evidence), or to require the person to whom the subpoena is directed to 
permit the inspection of premises relating to the administration or 
enforcement of this title or any matter under investigation in 
connection with this title.'';
            (2) in subsection (b), by striking ``documentary''; and
            (3) in subsection (c)--
                    (A) in the first sentence, by striking ``testimony 
                of any witness and the production of documentary 
                evidence'' and inserting ``testimony of any witness, 
                the production of evidence, or the inspection of 
                premises''; and
                    (B) in the second sentence, by striking ``question 
                or to produce documentary evidence'' and inserting 
                ``question, produce evidence, or permit the inspection 
                of premises''.
    (d) Willful Violations.--Section 424(b)(1)(A) of the Plant 
Protection Act (7 U.S.C. 7734(b)(1)(A)) is amended by striking ``and 
$500,000 for all violations adjudicated in a single proceeding'' and 
inserting ``$500,000 for all violations adjudicated in a single 
proceeding if the violations do not include a willful violation, and 
$1,000,000 for all violations adjudicated in a single proceeding if the 
violations include a willful violation''.

SEC. 10204. REGULATIONS TO IMPROVE MANAGEMENT AND OVERSIGHT OF CERTAIN 
              REGULATED ARTICLES.

    (a) In General.--Not later than 18 months after the date of 
enactment of this Act, the Secretary shall--
            (1) take action on each issue identified in the document 
        entitled ``Lessons Learned and Revisions under Consideration 
        for APHIS' Biotechnology Framework'', dated October 4, 2007; 
        and
            (2) as the Secretary considers appropriate, promulgate 
        regulations to improve the management and oversight of articles 
        regulated under the Plant Protection Act (7 U.S.C. 7701 et 
        seq.).
    (b) Inclusions.--In carrying out subsection (a), the Secretary 
shall take actions that are designed to enhance--
            (1) the quality and completeness of records;
            (2) the availability of representative samples;
            (3) the maintenance of identity and control in the event of 
        an unauthorized release;
            (4) corrective actions in the event of an unauthorized 
        release;
            (5) protocols for conducting molecular forensics;
            (6) clarity in contractual agreements;
            (7) the use of the latest scientific techniques for 
        isolation and confinement distances;
            (8) standards for quality management systems and effective 
        research; and
            (9) the design of electronic permits to store documents and 
        other information relating to the permit and notification 
        processes.
    (c) Consideration.--In carrying out subsection (a), the Secretary 
shall consider--
            (1) establishing--
                    (A) a system of risk-based categories to classify 
                each regulated article;
                    (B) a means to identify regulated articles 
                (including the retention of seed samples); and
                    (C) standards for isolation and containment 
                distances; and
            (2) requiring permit holders--
                    (A) to maintain a positive chain of custody;
                    (B) to provide for the maintenance of records;
                    (C) to provide for the accounting of material;
                    (D) to conduct periodic audits;
                    (E) to establish an appropriate training program;
                    (F) to provide contingency and corrective action 
                plans; and
                    (G) to submit reports as the Secretary considers to 
                be appropriate.

SEC. 10205. PEST AND DISEASE REVOLVING LOAN FUND.

    (a) Definitions.--In this section:
            (1) Authorized equipment.--
                    (A) In general.--The term ``authorized equipment'' 
                means any equipment necessary for the management of 
                forest land.
                    (B) Inclusions.--The term ``authorized equipment'' 
                includes--
                            (i) cherry pickers;
                            (ii) equipment necessary for--
                                    (I) the construction of staging and 
                                marshalling areas;
                                    (II) the planting of trees; and
                                    (III) the surveying of forest land;
                            (iii) vehicles capable of transporting 
                        harvested trees;
                            (iv) wood chippers; and
                            (v) any other appropriate equipment, as 
                        determined by the Secretary.
            (2) Fund.--The term ``Fund'' means the Pest and Disease 
        Revolving Loan Fund established by subsection (b).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture, acting through the Deputy Chief of the State 
        and Private Forestry organization.
    (b) Establishment of Fund.--There is established in the Treasury of 
the United States a revolving fund, to be known as the ``Pest and 
Disease Revolving Loan Fund'', consisting of such amounts as are 
appropriated to the Fund under subsection (f).
    (c) Expenditures From Fund.--
            (1) In general.--Subject to paragraph (2), on request by 
        the Secretary, the Secretary of the Treasury shall transfer 
        from the Fund to the Secretary such amounts as the Secretary 
        determines are necessary to provide loans under subsection (e).
            (2) Administrative expenses.--An amount not exceeding 10 
        percent of the amounts in the Fund shall be available for each 
        fiscal year to pay the administrative expenses necessary to 
        carry out this section.
    (d) Transfers of Amounts.--
            (1) In general.--The amounts required to be transferred to 
        the Fund under this section shall be transferred at least 
        monthly from the general fund of the Treasury to the Fund on 
        the basis of estimates made by the Secretary of the Treasury.
            (2) Adjustments.--Proper adjustment shall be made in 
        amounts subsequently transferred to the extent prior estimates 
        were in excess of or less than the amounts required to be 
        transferred.
    (e) Uses of Fund.--
            (1) Loans.--
                    (A) In general.--The Secretary shall use amounts in 
                the Fund to provide loans to eligible units of local 
                government to finance purchases of authorized equipment 
                to monitor, remove, dispose of, and replace infested 
                trees that are located--
                            (i) on land under the jurisdiction of the 
                        eligible units of local government; and
                            (ii) within the borders of quarantine areas 
                        infested by plant pests.
                    (B) Maximum amount.--The maximum amount of a loan 
                that may be provided by the Secretary to an eligible 
                unit of local government under this subsection shall be 
                the lesser of--
                            (i) the amount that the eligible unit of 
                        local government has appropriated to finance 
                        purchases of authorized equipment in accordance 
                        with subparagraph (A); or
                            (ii) $5,000,000.
                    (C) Interest rate.--The interest rate on any loan 
                made by the Secretary under this paragraph shall be a 
                rate equal to 2 percent.
                    (D) Report.--Not later than 180 days after the date 
                on which an eligible unit of local government receives 
                a loan provided by the Secretary under subparagraph 
                (A), the eligible unit of local government shall submit 
                to the Secretary a report that describes each purchase 
                made by the eligible unit of local government using 
                assistance provided through the loan.
            (2) Loan repayment schedule.--
                    (A) In general.--To be eligible to receive a loan 
                from the Secretary under paragraph (1), in accordance 
                with each requirement described in subparagraph (B), an 
                eligible unit of local government shall enter into an 
                agreement with the Secretary to establish a loan 
                repayment schedule relating to the repayment of the 
                loan.
                    (B) Requirements relating to loan repayment 
                schedule.--A loan repayment schedule established under 
                subparagraph (A) shall require the eligible unit of 
                local government--
                            (i) to repay to the Secretary of the 
                        Treasury, not later than 1 year after the date 
                        on which the eligible unit of local government 
                        receives a loan under paragraph (1), and 
                        semiannually thereafter, an amount equal to the 
                        quotient obtained by dividing--
                                    (I) the principal amount of the 
                                loan (including interest); by
                                    (II) the total quantity of payments 
                                that the eligible unit of local 
                                government is required to make during 
                                the repayment period of the loan; and
                            (ii) not later than 20 years after the date 
                        on which the eligible unit of local government 
                        receives a loan under paragraph (1), to 
                        complete repayment to the Secretary of the 
                        Treasury of the loan made under this section 
                        (including interest).
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Fund such sums as are necessary to carry out this 
section.

SEC. 10206. COOPERATIVE AGREEMENTS RELATING TO PLANT PEST AND DISEASE 
              PREVENTION ACTIVITIES.

    Section 431 of the Plant Protection Act (7 U.S.C. 7751) is amended 
by adding at the end the following:
    ``(f) Transfer of Cooperative Agreement Fund.--
            ``(1) In general.--A State may provide to a unit of local 
        government in the State described in paragraph (2) any cost-
        sharing assistance or financing mechanism provided to the State 
        under a cooperative agreement entered into under this Act 
        between the Secretary and the State relating to the 
        eradication, prevention, control, or suppression of plant 
        pests.
            ``(2) Requirements.--To be eligible for assistance or 
        financing under paragraph (1), a unit of local government shall 
        be--
                    ``(A) engaged in any activity relating to the 
                eradication, prevention, control, or suppression of the 
                plant pest infestation covered under the cooperative 
                agreement between the Secretary and the State; and
                    ``(B) capable of documenting each plant pest 
                infestation eradication, prevention, control, or 
                suppression activity generally carried out by--
                            ``(i) the Department of Agriculture; or
                            ``(ii) the State department of agriculture 
                        that has jurisdiction over the unit of local 
                        government.''.

                    Subtitle C--Organic Agriculture

SEC. 10301. NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM.

    Section 10606 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 6523) is amended--
            (1) in subsection (a), by striking ``$5,000,000 for fiscal 
        year 2002'' and inserting ``$22,000,000 for fiscal year 2008'';
            (2) in subsection (b)(2), by striking ``$500'' and 
        inserting ``$750''; and
            (3) by adding at the end the following:
    ``(c) Reporting.--Not later than March 1 of each year, the 
Secretary shall submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate a report that describes the requests by, 
disbursements to, and expenditures for each State under the program 
during the current and previous fiscal year, including the number of 
producers and handlers served by the program in the previous fiscal 
year.''.

SEC. 10302. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.

    Section 7407 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 5925c) is amended to read as follows:

``SEC. 7407. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.

    ``(a) In General.--The Secretary shall collect and report data on 
the production and marketing of organic agricultural products.
    ``(b) Requirements.--In carrying out subsection (a), the Secretary 
shall, at a minimum--
            ``(1) collect and distribute comprehensive reporting of 
        prices relating to organically produced agricultural products;
            ``(2) conduct surveys and analysis and publish reports 
        relating to organic production, handling, distribution, retail, 
        and trend studies (including consumer purchasing patterns); and
            ``(3) develop surveys and report statistical analysis on 
        organically produced agricultural products.
    ``(c) Report.--Not later than 180 days after the date of enactment 
of this subsection, the Secretary shall submit to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report that--
            ``(1) describes the progress that has been made in 
        implementing this section; and
            ``(2) identifies any additional production and marketing 
        data needs.
    ``(d) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use to carry out this section 
        $5,000,000, to remain available until expended.
            ``(2) Additional funding.--In addition to funds made 
        available under paragraph (1), there are authorized to be 
        appropriated to carry out this section not more than $5,000,000 
        for each of fiscal years 2008 through 2012, to remain available 
        until expended.''.

SEC. 10303. NATIONAL ORGANIC PROGRAM.

    Section 2123 of the Organic Foods Production Act of 1990 (7 U.S.C. 
6522) is amended--
            (1) by striking ``There are'' and inserting the following:
    ``(a) In General.--There are''; and
            (2) by adding at the end the following:
    ``(b) National Organic Program.--Notwithstanding any other 
provision of law, in order to carry out activities under the national 
organic program established under this title, there are authorized to 
be appropriated--
            ``(1) $5,000,000 for fiscal year 2008;
            ``(2) $6,500,000 for fiscal year 2009;
            ``(3) $8,000,000 for fiscal year 2010;
            ``(4) $9,500,000 for fiscal year 2011;
            ``(5) $11,000,000 for fiscal year 2012; and
            ``(6) in addition to those amounts, such additional sums as 
        are necessary for fiscal year 2009 and each fiscal year 
        thereafter.''.

                       Subtitle D--Miscellaneous

SEC. 10401. NATIONAL HONEY BOARD.

    Section 7(c) of the Honey Research, Promotion, and Consumer 
Information Act (7 U.S.C. 4606(c)) is amended by adding at the end the 
following:
            ``(12) Referendum requirement.--
                    ``(A) Definition of existing honey board.--The term 
                `existing Honey Board' means the Honey Board in effect 
                on the date of enactment of this paragraph.
                    ``(B) Conduct of referenda.--Notwithstanding any 
                other provision of law, subject to subparagraph (C), 
                the order providing for the establishment and operation 
                of the existing Honey Board shall continue in force, 
                until the Secretary first conducts, at the earliest 
                practicable date, but not later than 180 days after the 
                date of enactment of this paragraph, referenda on 
                orders to establish a honey packer-importer board or a 
                United States honey producer board.
                    ``(C) Requirements.--In conducting referenda under 
                subparagraph (B), and in exercising fiduciary 
                responsibilities in any transition to any 1 or more 
                successor boards, the Secretary shall--
                            ``(i) conduct a referendum of eligible 
                        United States honey producers for the 
                        establishment of a marketing board solely for 
                        United States honey producers;
                            ``(ii) conduct a referendum of eligible 
                        packers, importers, and handlers of honey for 
                        the establishment of a marketing board for 
                        packers, importers, and handlers of honey;
                            ``(iii) notwithstanding the timing of the 
                        referenda required under clauses (i) and (ii) 
                        or of the establishment of any 1 or more 
                        successor boards pursuant to those referenda, 
                        ensure that the rights and interests of honey 
                        producers, importers, packers, and handlers of 
                        honey are equitably protected in any 
                        disposition of the assets, facilities, 
                        intellectual property, and programs of the 
                        existing Honey Board and in the transition to 
                        any 1 or more new successor marketing boards;
                            ``(iv) ensure that the existing Honey Board 
                        continues in operation until such time as the 
                        Secretary determines that--
                                    ``(I) any 1 or more successor 
                                boards, if approved, are operational; 
                                and
                                    ``(II) the interests of producers, 
                                importers, packers, and handlers of 
                                honey can be equitably protected during 
                                any remaining period in which a 
                                referendum on a successor board or the 
                                establishment of such a board is 
                                pending; and
                            ``(v) discontinue collection of assessments 
                        under the order establishing the existing Honey 
                        Board on the date the Secretary requires that 
                        collections commence pursuant to an order 
                        approved in a referendum by eligible producers 
                        or processors and importers of honey.
                    ``(D) Honey board referendum.--If 1 or more orders 
                are approved pursuant to paragraph (C)--
                            ``(i) the Secretary shall not be required 
                        to conduct a continuation referendum on the 
                        order in existence on the date of enactment of 
                        this paragraph; and
                            ``(ii) that order shall be terminated 
                        pursuant to the provisions of the order.''.

SEC. 10402. IDENTIFICATION OF HONEY.

    (a) In General.--Section 203(h) of the Agricultural Marketing Act 
of 1946 (7 U.S.C. 1622(h)) is amended--
            (1) by designating the first through sixth sentences as 
        paragraphs (1), (2)(A), (2)(B), (3), (4), and (5), 
        respectively; and
            (2) by adding at the end the following:
            ``(6) Identification of honey.--
                    ``(A) In general.--The use of a label or 
                advertising material on, or in conjunction with, 
                packaged honey that bears any official certificate of 
                quality, grade mark or statement, continuous inspection 
                mark or statement, sampling mark or statement, or any 
                combination of the certificates, marks, or statements 
                of the Department of Agriculture is hereby prohibited 
                under this Act unless there appears legibly and 
                permanently in close proximity (such as on the same 
                side(s) or surface(s)) to the certificate, mark, or 
                statement, and in at least a comparable size, the 1 or 
                more names of the 1 or more countries of origin of the 
                lot or container of honey, preceded by the words 
                `Product of' or other words of similar meaning.
                    ``(B) Violation.--A violation of the requirements 
                of subparagraph (A) may be deemed by the Secretary to 
                be sufficient cause for debarment from the benefits of 
                this Act only with respect to honey.''.
    (b) Effective Date.--The amendments made by subsection (a) take 
effect on the date that is 1 year after the date of enactment of this 
Act.

SEC. 10403. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY CROPS.

    (a) Grants Authorized.--The Secretary may make grants under this 
section to an eligible entity described in subsection (b)--
            (1) to improve the cost-effective movement of specialty 
        crops to local, regional, national, and international markets; 
        and
            (2) to address regional intermodal transportation 
        deficiencies that adversely affect the movement of specialty 
        crops to markets inside or outside the United States.
    (b) Eligible Grant Recipients.--Grants may be made under this 
section to any of, or any combination of:
            (1) State and local governments.
            (2) Grower cooperatives.
            (3) National, State, or regional organizations of 
        producers, shippers, or carriers.
            (4) Other entities as determined to be appropriate by the 
        Secretary.
    (c) Matching Funds.--The recipient of a grant under this section 
shall contribute an amount of non-Federal funds toward the project for 
which the grant is provided that is at least equal to the amount of 
grant funds received by the recipient under this section.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary for 
each of fiscal years 2008 through 2012.

SEC. 10404. MARKET LOSS ASSISTANCE FOR ASPARAGUS PRODUCERS.

    (a) In General.--As soon as practicable after the date of enactment 
of this Act, the Secretary shall make payments to producers of the 2007 
crop of asparagus for market loss resulting from imports during the 
2004 through 2007 crop years.
    (b) Payment Rate.--The payment rate for a payment under this 
section shall be based on the reduction in revenue received by 
asparagus producers associated with imports during the 2004 through 
2007 crop years.
    (c) Payment Quantity.--The payment quantity for asparagus for which 
the producers on a farm are eligible for payments under this section 
shall be equal to the average quantity of the 2003 crop of asparagus 
produced by producers on the farm.
    (d) Funding.--
            (1) In general.--Subject to paragraph (2), the Secretary 
        shall make available $15,000,000 of the funds of the Commodity 
        Credit Corporation to carry out a program to provide market 
        loss payments to producers of asparagus under this section.
            (2) Allocation.--Of the amount made available under 
        paragraph (1), the Secretary shall use--
                    (A) $7,500,000 to make payments to producers of 
                asparagus for the fresh market; and
                    (B) $7,500,000 to make payments to producers of 
                asparagus for the processed or frozen market.

                          TITLE XI--LIVESTOCK

SEC. 11001. LIVESTOCK MANDATORY REPORTING.

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

SEC. 11002. COUNTRY OF ORIGIN LABELING.

    Subtitle D of the Agricultural Marketing Act of 1946 (7 U.S.C. 1638 
et seq.) is amended--
            (1) in section 281(2)(A)--
                    (A) in clause (v), by striking ``and'';
                    (B) in clause (vi), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(vii) meat produced from goats;
                            ``(viii) chicken, in whole and in part;
                            ``(ix) ginseng;
                            ``(x) pecans; and
                            ``(xi) macadamia nuts.'';
            (2) in section 282--
                    (A) in subsection (a), by striking paragraphs (2) 
                and (3) and inserting the following:
            ``(2) Designation of country of origin for beef, lamb, 
        pork, chicken, and goat meat.--
                    ``(A) United states country of origin.--A retailer 
                of a covered commodity that is beef, lamb, pork, 
                chicken, or goat meat may designate the covered 
                commodity as exclusively having a United States country 
                of origin only if the covered commodity is derived from 
                an animal that was--
                            ``(i) exclusively born, raised, and 
                        slaughtered in the United States;
                            ``(ii) born and raised in Alaska or Hawaii 
                        and transported for a period of not more than 
                        60 days through Canada to the United States and 
                        slaughtered in the United States; or
                            ``(iii) present in the United States on or 
                        before July 15, 2008, and once present in the 
                        United States, remained continuously in the 
                        United States.
                    ``(B) Multiple countries of origin.--
                            ``(i) In general.--A retailer of a covered 
                        commodity that is beef, lamb, pork, chicken, or 
                        goat meat that is derived from an animal that 
                        is--
                                    ``(I) not exclusively born, raised, 
                                and slaughtered in the United States,
                                    ``(II) born, raised, or slaughtered 
                                in the United States, and
                                    ``(III) not imported into the 
                                United States for immediate slaughter,
                        may designate the country of origin of such 
                        covered commodity as all of the countries in 
                        which the animal may have been born, raised, or 
                        slaughtered.
                            ``(ii) Relation to general requirement.--
                        Nothing in this subparagraph alters the 
                        mandatory requirement to inform consumers of 
                        the country of origin of covered commodities 
                        under paragraph (1).
                    ``(C) Imported for immediate slaughter.--A retailer 
                of a covered commodity that is beef, lamb, pork, 
                chicken, or goat meat that is derived from an animal 
                that is imported into the United States for immediate 
                slaughter shall designate the origin of such covered 
                commodity as--
                            ``(i) the country from which the animal was 
                        imported; and
                            ``(ii) the United States.
                    ``(D) Foreign country of origin.--A retailer of a 
                covered commodity that is beef, lamb, pork, chicken, or 
                goat meat that is derived from an animal that is not 
                born, raised, or slaughtered in the United States shall 
                designate a country other than the United States as the 
                country of origin of such commodity.
                    ``(E) Ground beef, pork, lamb, chicken, and goat.--
                The notice of country of origin for ground beef, ground 
                pork, ground lamb, ground chicken, or ground goat shall 
                include--
                            ``(i) a list of all countries of origin of 
                        such ground beef, ground pork, ground lamb, 
                        ground chicken, or ground goat; or
                            ``(ii) a list of all reasonably possible 
                        countries of origin of such ground beef, ground 
                        pork, ground lamb, ground chicken, or ground 
                        goat.
            ``(3) Designation of country of origin for fish.--
                    ``(A) In general.--A retailer of a covered 
                commodity that is farm-raised fish or wild fish may 
                designate the covered commodity as having a United 
                States country of origin only if the covered 
                commodity--
                            ``(i) in the case of farm-raised fish, is 
                        hatched, raised, harvested, and processed in 
                        the United States; and
                            ``(ii) in the case of wild fish, is--
                                    ``(I) harvested in the United 
                                States, a territory of the United 
                                States, or a State, or by a vessel that 
                                is documented under chapter 121 of 
                                title 46, United States Code, or 
                                registered in the United States; and
                                    ``(II) processed in the United 
                                States, a territory of the United 
                                States, or a State, including the 
                                waters thereof, or aboard a vessel that 
                                is documented under chapter 121 of 
                                title 46, United States Code, or 
                                registered in the United States.
                    ``(B) Designation of wild fish and farm-raised 
                fish.--The notice of country of origin for wild fish 
                and farm-raised fish shall distinguish between wild 
                fish and farm-raised fish.
            ``(4) Designation of country of origin for perishable 
        agricultural commodities, ginseng, peanuts, pecans, and 
        macadamia nuts.--
                    ``(A) In general.--A retailer of a covered 
                commodity that is a perishable agricultural commodity, 
                ginseng, peanut, pecan, or macadamia nut may designate 
                the covered commodity as having a United States country 
                of origin only if the covered commodity is exclusively 
                produced in the United States.
                    ``(B) State, region, locality of the united 
                states.--With respect to a covered commodity that is a 
                perishable agricultural commodity, ginseng, peanut, 
                pecan, or macadamia nut produced exclusively in the 
                United States, designation by a retailer of the State, 
                region, or locality of the United States where such 
                commodity was produced shall be sufficient to identify 
                the United States as the country of origin.''; and
                    (B) by striking subsection (d) and inserting the 
                following:
    ``(d) Audit Verification System.--
            ``(1) In general.--The Secretary may conduct an audit of 
        any person that prepares, stores, handles, or distributes a 
        covered commodity for retail sale to verify compliance with 
        this subtitle (including the regulations promulgated under 
        section 284(b)).
            ``(2) Record requirements.--
                    ``(A) In general.--A person subject to an audit 
                under paragraph (1) shall provide the Secretary with 
                verification of the country of origin of covered 
                commodities. Records maintained in the course of the 
                normal conduct of the business of such person, 
                including animal health papers, import or customs 
                documents, or producer affidavits, may serve as such 
                verification.
                    ``(B) Prohibition on requirement of additional 
                records.--The Secretary may not require a person that 
                prepares, stores, handles, or distributes a covered 
                commodity to maintain a record of the country of origin 
                of a covered commodity other than those maintained in 
                the course of the normal conduct of the business of 
                such person.''; and
            (3) in section 283--
                    (A) by striking subsections (a) and (c);
                    (B) by redesignating subsection (b) as subsection 
                (a);
                    (C) in subsection (a) (as so redesignated), by 
                striking ``retailer'' and inserting ``retailer or 
                person engaged in the business of supplying a covered 
                commodity to a retailer''; and
                    (D) by adding at the end the following new 
                subsection:
    ``(b) Fines.--If, on completion of the 30-day period described in 
subsection (a)(2), the Secretary determines that the retailer or person 
engaged in the business of supplying a covered commodity to a retailer 
has--
            ``(1) not made a good faith effort to comply with section 
        282, and
            ``(2) continues to willfully violate section 282 with 
        respect to the violation about which the retailer or person 
        received notification under subsection (a)(1),
after providing notice and an opportunity for a hearing before the 
Secretary with respect to the violation, the Secretary may fine the 
retailer or person in an amount of not more than $1,000 for each 
violation.''.

SEC. 11003. AGRICULTURAL FAIR PRACTICES ACT OF 1967 DEFINITIONS.

    Section 3 of the Agricultural Fair Practices Act of 1967 (7 U.S.C. 
2302) is amended--
            (1) by striking ``When used in this Act--'' and inserting 
        ``In this Act:'';
            (2) in subsection (a)--
                    (A) by redesignating paragraphs (1) through (4) as 
                clauses (i) through (iv), respectively; and
                    (B) in clause (iv) (as so redesignated), by 
                striking ``clause (1), (2), or (3) of this paragraph'' 
                and inserting ``clause (i), (ii), or (iii)'';
            (3) by striking subsection (d);
            (4) by redesignating subsections (a), (b), (c), and (e) as 
        paragraphs (3), (4), (2), (1), respectively, indenting 
        appropriately, and moving those paragraphs so as to appear in 
        numerical order;
            (5) in each paragraph (as so redesignated) that does not 
        have a heading, by inserting a heading, in the same style as 
        the heading in the amendment made by paragraph (6), the text of 
        which is comprised of the term defined in the paragraph;
            (6) in paragraph (2) (as so redesignated)--
                    (A) by striking ``The term `association of 
                producers' means'' and inserting the following:
            ``(2) Association of producers.--
                    ``(A) In general.--The term `association of 
                producers' means''; and
                    (B) by adding at the end the following:
                    ``(B) Inclusion.--The term `association of 
                producers' includes an organization whose membership is 
                exclusively limited to agricultural producers and 
                dedicated to promoting the common interest and general 
                welfare of producers of agricultural products.''; and
            (7) in paragraph (3) (as so redesignated)--
                    (A) by striking ``The term'' and inserting the 
                following:
            ``(3) Handler.--
                    ``(A) In general.--The term''; and
                    (B) by inserting after clause (iv) of subparagraph 
                (A) (as redesignated by subparagraph (A) and paragraph 
                (2)) the following:
                    ``(B) Exclusion.--The term `handler' does not 
                include a person, other than a packer (as defined in 
                section 201 of the Packers and Stockyards Act, 1921 (7 
                U.S.C. 191)), that provides custom feeding services for 
                a producer.''.

SEC. 11004. ANNUAL REPORT.

    (a) In General.--The Packers and Stockyards Act, 1921, is amended--
            (1) by redesignating section 416 (7 U.S.C. 229) as section 
        417; and
            (2) by inserting after section 415 (7 U.S.C. 228d) the 
        following:

``SEC. 416. ANNUAL REPORT.

    ``(a) In General.--Not later than March 1 of each year, the 
Secretary shall submit to Congress and make publicly available a report 
that--
            ``(1) states, for the preceding year, separately for 
        livestock and poultry and separately by enforcement area 
        category (financial, trade practice, or competitive acts and 
        practices), with respect to investigations into possible 
        violations of this Act--
                    ``(A) the number of investigations opened;
                    ``(B) the number of investigations that were closed 
                or settled without a referral to the General Counsel of 
                the Department of Agriculture;
                    ``(C) for investigations described in subparagraph 
                (B), the length of time from initiation of the 
                investigation to when the investigation was closed or 
                settled without the filing of an enforcement complaint;
                    ``(D) the number of investigations that resulted in 
                referral to the General Counsel of the Department of 
                Agriculture for further action, the number of such 
                referrals resolved without administrative enforcement 
                action, and the number of enforcement actions filed by 
                the General Counsel;
                    ``(E) for referrals to the General Counsel that 
                resulted in an administrative enforcement action being 
                filed, the length of time from the referral to the 
                filing of the administrative action;
                    ``(F) for referrals to the General Counsel that 
                resulted in an administrative enforcement action being 
                filed, the length of time from filing to resolution of 
                the administrative enforcement action;
                    ``(G) the number of investigations that resulted in 
                referral to the Department of Justice for further 
                action, and the number of civil enforcement actions 
                filed by the Department of Justice on behalf of the 
                Secretary pursuant to such a referral;
                    ``(H) for referrals that resulted in a civil 
                enforcement action being filed by the Department of 
                Justice, the length of time from the referral to the 
                filing of the enforcement action;
                    ``(I) for referrals that resulted in a civil 
                enforcement action being filed by the Department of 
                Justice, the length of time from the filing of the 
                enforcement action to resolution; and
                    ``(J) the average civil penalty imposed in 
                administrative or civil enforcement actions for 
                violations of this Act, and the total amount of civil 
                penalties imposed in all such enforcement actions; and
            ``(2) includes any other additional information the 
        Secretary considers important to include in the annual report.
    ``(b) Format of Information Provided.--For subparagraphs (C), (E), 
(F), and (H) of subsection (a)(1), the Secretary may, if appropriate 
due to the number of complaints for a given category, provide summary 
statistics (including range, maximum, minimum, mean, and average times) 
and graphical representations.''.
    (b) Sunset.--Effective September 30, 2012, section 416 of the 
Packers and Stockyards Act, 1921, as added by subsection (a)(2), is 
repealed.

SEC. 11005. PRODUCTION CONTRACTS.

    Title II of the Packers and Stockyards Act, 1921 (7 U.S.C. 198 et 
seq.) is amended by adding at the end the following:

``SEC. 208. PRODUCTION CONTRACTS.

    ``(a) Right of Contract Producers to Cancel Production Contracts.--
            ``(1) In general.--A poultry grower or swine production 
        contract grower may cancel a poultry growing arrangement or 
        swine production contract by mailing a cancellation notice to 
        the live poultry dealer or swine contractor not later than the 
        later of--
                    ``(A) the date that is 3 business days after the 
                date on which the poultry growing arrangement or swine 
                production contract is executed; or
                    ``(B) any cancellation date specified in the 
                poultry growing arrangement or swine production 
                contract.
            ``(2) Disclosure.--A poultry growing arrangement or swine 
        production contract shall clearly disclose--
                    ``(A) the right of the poultry grower or swine 
                production contract grower to cancel the poultry 
                growing arrangement or swine production contract;
                    ``(B) the method by which the poultry grower or 
                swine production contract grower may cancel the poultry 
                growing arrangement or swine production contract; and
                    ``(C) the deadline for canceling the poultry 
                growing arrangement or swine production contract.
    ``(b) Required Disclosure of Additional Capital Investments in 
Production Contracts.--
            ``(1) In general.--A poultry growing arrangement or swine 
        production contract shall contain on the first page a statement 
        identified as `Additional Capital Investments Disclosure 
        Statement', which shall conspicuously state that additional 
        large capital investments may be required of the poultry grower 
        or swine production contract grower during the term of the 
        poultry growing arrangement or swine production contract.
            ``(2) Application.--Paragraph (1) shall apply to any 
        poultry growing arrangement or swine production contract 
        entered into, amended, altered, modified, renewed, or extended 
        after the date of the enactment of this section.

``SEC. 209. CHOICE OF LAW AND VENUE.

    ``(a) Location of Forum.--The forum for resolving any dispute among 
the parties to a poultry growing arrangement or swine production or 
marketing contract that arises out of the arrangement or contract shall 
be located in the Federal judicial district in which the principle part 
of the performance takes place under the arrangement or contract.
    ``(b) Choice of Law.--A poultry growing arrangement or swine 
production or marketing contract may specify which State's law is to 
apply to issues governed by State law in any dispute arising out of the 
arrangement or contract, except to the extent that doing so is 
prohibited by the law of the State in which the principal part of the 
performance takes place under the arrangement or contract.

``SEC. 210. ARBITRATION.

    ``(a) In General.--Any livestock or poultry contract that contains 
a provision requiring the use of arbitration to resolve any controversy 
that may arise under the contract shall contain a provision that allows 
a producer or grower, prior to entering the contract to decline to be 
bound by the arbitration provision.
    ``(b) Disclosure.--Any livestock or poultry contract that contains 
a provision requiring the use of arbitration shall contain terms that 
conspicuously disclose the right of the contract producer or grower, 
prior to entering the contract, to decline the requirement to use 
arbitration to resolve any controversy that may arise under the 
livestock or poultry contract.
    ``(c) Dispute Resolution.--Any contract producer or grower that 
declines a requirement of arbitration pursuant to subsection (b) has 
the right, to nonetheless seek to resolve any controversy that may 
arise under the livestock or poultry contract, if, after the 
controversy arises, both parties consent in writing to use arbitration 
to settle the controversy.
    ``(d) Application.--Subsections (a) (b) and (c) shall apply to any 
contract entered into, amended, altered, modified, renewed, or extended 
after the date of the enactment of the Food, Conservation, and Energy 
Act of 2008 .
    ``(e) Unlawful Practice.--Any action by or on behalf of a packer, 
swine contractor, or live poultry dealer that violates this section 
(including any action that has the intent or effect of limiting the 
ability of a producer or grower to freely make a choice described in 
subsection (b)) is an unlawful practice under this Act.
    ``(f) Regulations.--The Secretary shall promulgate regulations to--
            ``(1) carry out this section; and
            ``(2) establish criteria that the Secretary will consider 
        in determining whether the arbitration process provided in a 
        contract provides a meaningful opportunity for the grower or 
        producer to participate fully in the arbitration process.''.

SEC. 11006. REGULATIONS.

    As soon as practicable, but not later than 2 years after the date 
of the enactment of this Act, the Secretary of Agriculture shall 
promulgate regulations with respect to the Packers and Stockyards Act, 
1921 (7 U.S.C. 181 et seq.) to establish criteria that the Secretary 
will consider in determining--
            (1) whether an undue or unreasonable preference or 
        advantage has occurred in violation of such Act;
            (2) whether a live poultry dealer has provided reasonable 
        notice to poultry growers of any suspension of the delivery of 
        birds under a poultry growing arrangement;
            (3) when a requirement of additional capital investments 
        over the life of a poultry growing arrangement or swine 
        production contract constitutes a violation of such Act; and
            (4) if a live poultry dealer or swine contractor has 
        provided a reasonable period of time for a poultry grower or a 
        swine production contract grower to remedy a breach of contract 
        that could lead to termination of the poultry growing 
        arrangement or swine production contract.

SEC. 11007. SENSE OF CONGRESS REGARDING PSEUDORABIES ERADICATION 
              PROGRAM.

    It is the sense of Congress that--
            (1) the Secretary of Agriculture should recognize the 
        threat feral swine pose to the domestic swine population and 
        the entire livestock industry;
            (2) keeping the United States commercial swine herd free of 
        pseudorabies is essential to maintaining and growing pork 
        export markets;
            (3) the establishment and continued support of a swine 
        surveillance system will assist the swine industry in the 
        monitoring, surveillance, and eradication of pseudorabies; and
            (4) pseudorabies eradication is a high priority that the 
        Secretary should carry out under the authorities of the Animal 
        Health Protection Act.

SEC. 11008. SENSE OF CONGRESS REGARDING THE CATTLE FEVER TICK 
              ERADICATION PROGRAM.

    It is the sense of Congress that--
            (1) the cattle fever tick and the southern cattle tick are 
        vectors of the causal agent of babesiosis, a severe and often 
        fatal disease of cattle; and
            (2) implementing a national strategic plan for the cattle 
        fever tick eradication program is a high priority that the 
        Secretary of Agriculture should carry out in order to--
                    (A) prevent the entry of cattle fever ticks into 
                the United States;
                    (B) enhance and maintain an effective surveillance 
                program to rapidly detect any cattle fever tick 
                incursions; and
                    (C) research, identify, and procure the tools and 
                knowledge necessary to prevent and eradicate cattle 
                fever ticks in the United States.

SEC. 11009. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

    (a) Funding.--Section 375(e)(6) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2008j(e)(6)) is amended by striking 
subparagraphs (B) and (C) and inserting the following:
                    ``(B) Mandatory funding.--Of the funds of the 
                Commodity Credit Corporation, the Secretary shall use 
                to carry out this section $1,000,000 for fiscal year 
                2008, to remain available until expended.
                    ``(C) Authorization of appropriations.--There is 
                authorized to be appropriated to the Secretary to carry 
                out this section $10,000,000 for each of fiscal years 
                2008 through 2012.''.
    (b) Repeal of Requirement To Privatize Revolving Fund.--
            (1) In general.--Section 375 of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 2008j) is amended by striking 
        subsection (j).
            (2) Effective date.--The amendment made by paragraph (1) 
        takes effect on May 1, 2007.

SEC. 11010. TRICHINAE CERTIFICATION PROGRAM.

    (a) Voluntary Trichinae Certification.--
            (1) Establishment.--Not later than 90 days after the date 
        of the enactment of this Act, the Secretary of Agriculture 
        shall establish a voluntary trichinae certification program. 
        Such program shall include the facilitation of the export of 
        pork products and certification services related to such 
        products.
            (2) Regulations.--The Secretary shall issue final 
        regulations to implement the program under paragraph (1) not 
        later than 90 days after the date of the enactment of this Act.
            (3) Report.--If final regulations are not published in 
        accordance with paragraph (2) within 90 days of the date of the 
        enactment of this Act, the Secretary shall submit to the 
        Committee on Agriculture of the House of Representatives and 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate a report containing--
                    (A) an explanation of why the final regulations 
                have not been issued in accordance with paragraph (2); 
                and
                    (B) the date on which the Secretary expects to 
                issue such final regulations.
    (b) Funding.--Subject to the availability of appropriations under 
subsection (d)(1)(A) of section 10405 of the Animal Health Protection 
Act (7 U.S.C. 8304), as added by subsection (c), the Secretary shall 
use not less than $6,200,000 of the funds made available under such 
subsection to carry out subsection (a).
    (c) Authorization of Appropriations.--Section 10405 of the Animal 
Health Protection Act (7 U.S.C. 8304) is amended by adding at the end 
the following new subsection:
    ``(d) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated--
                    ``(A) $1,500,000 for each of fiscal years 2008 
                through 2012 to carry out section 11010 of the Food, 
                Conservation, and Energy Act of 2008; and
                    ``(B) such sums as may be necessary for each of 
                fiscal years 2008 through 2012 to carry out this 
                section.
            ``(2) Availability.--Funds appropriated under paragraph (1) 
        shall remain available until expended.''.

SEC. 11011. LOW PATHOGENIC DISEASES.

    The Animal Health Protection Act (7 U.S.C. 8301 et seq.) is 
amended--
            (1) in section 10407(d)(2)(C) (7 U.S.C. 8306(d)(2)(C)), by 
        striking ``of longer than 60 days'';
            (2) in section 10409(b) (7 U.S.C. 8308(b))--
                    (A) by redesignating paragraph (2) as paragraph 
                (3);
                    (B) by inserting after paragraph (1) the following 
                new paragraph:
            ``(2) Specific cooperative programs.--The Secretary shall 
        compensate industry participants and State agencies that 
        cooperate with the Secretary in carrying out operations and 
        measures under subsection (a) for 100 percent of eligible costs 
        relating to cooperative programs involving Federal, State, and 
        industry participants to control diseases of low pathogenicity 
        in accordance with regulations issued by the Secretary.''; and
                    (C) in paragraph (3) (as so redesignated), by 
                striking ``of longer than 60 days''; and
            (3) in section 10417(b)(3) (7 U.S.C. 8316(b)(3)), by 
        striking ``of longer than 60 days''.

SEC. 11012. ANIMAL PROTECTION.

    (a) Willful Violations.--Section 10414(b)(1)(A) of the Animal 
Health Protection Act (7 U.S.C. 8316(b)(1)(A)) is amended by striking 
clause (iii) and inserting the following:
                            ``(iii) for all violations adjudicated in a 
                        single proceeding--
                                    ``(I) $500,000 if the violations do 
                                not include a willful violation; or
                                    ``(II) $1,000,000 if the violations 
                                include 1 or more willful 
                                violations.''.
    (b) Subpoena Authority.--Section 10415(a)(2) of the Animal Health 
Protection Act (7 U.S.C. 8314) is amended
            (1) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) In general.--The Secretary shall have the 
                power to subpoena the attendance and testimony of any 
                witness, the production of all evidence (including 
                books, papers, documents, electronically stored 
                information, and other tangible things that constitute 
                or contain evidence), or to require the person to whom 
                the subpoena is directed to permit the inspection of 
                premises relating to the administration or enforcement 
                of this title or any matter under investigation in 
                connection with this title.'';
            (2) in subparagraph (B), by striking ``documentary''; and
            (3) in subparagraph (C)--
                    (A) in clause (i), by striking ``testimony of any 
                witness and the production of documentary evidence'' 
                and inserting ``testimony of any witness, the 
                production of evidence, or the inspection of 
                premises''; and
                    (B) in clause (ii), by striking ``question or to 
                produce documentary evidence'' and inserting 
                ``question, produce evidence, or permit the inspection 
                of premises''.

SEC. 11013. NATIONAL AQUATIC ANIMAL HEALTH PLAN.

    (a) In General.--The Secretary of Agriculture may enter into a 
cooperative agreement with an eligible entity to carry out a project 
under a national aquatic animal health plan under the authority of the 
Secretary under section 10411 of the Animal Health Protection Act (7 
U.S.C. 8310) for the purpose of detecting, controlling, or eradicating 
diseases of aquaculture species and promoting species-specific best 
management practices.
    (b) Cooperative Agreements Between Eligible Entities and the 
Secretary.--
            (1) Duties.--As a condition of entering into a cooperative 
        agreement with the Secretary under this section, an eligible 
        entity shall agree to--
                    (A) assume responsibility for the non-Federal share 
                of the cost of carrying out the project under the 
                national aquatic health plan, as determined by the 
                Secretary in accordance with paragraph (2); and
                    (B) act in accordance with applicable disease and 
                species specific best management practices relating to 
                activities to be carried out under such project.
            (2) Non-federal share.--The Secretary shall determine the 
        non-Federal share of the cost of carrying out a project under 
        the national aquatic health plan on a case-by-case basis for 
        each such project. Such non-Federal share may be provided in 
        cash or in-kind.
    (c) Applicability of Other Laws.--In carrying out this section, the 
Secretary may make use of the authorities under the Animal Health 
Protection Act (7 U.S.C. 8301 et seq.), including the authority to 
carry out operations and measures to detect, control, and eradicate 
pests and diseases and the authority to pay claims arising out of the 
destruction of any animal, article, or means of conveyance.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as may be necessary to carry out this section 
for each of fiscal years 2008 through 2012.
    (e) Eligible Entity Defined.--In this section, the term ``eligible 
entity'' means a State, a political subdivision of a State, Indian 
tribe, or other appropriate entity, as determined by the Secretary of 
Agriculture.

SEC. 11014. STUDY ON BIOENERGY OPERATIONS.

    (a) Study.--The Secretary of Agriculture shall conduct a study to 
evaluate the role of animal manure as a source of fertilizer and its 
potential additional uses. Such study shall include--
            (1) a determination of the extent to which animal manure is 
        utilized as fertilizer in agricultural operations by type 
        (including species and agronomic practices employed) and size;
            (2) an evaluation of the potential impact on consumers and 
        on agricultural operations (by size) resulting from limitations 
        being placed on the utilization of animal manure as fertilizer; 
        and
            (3) an evaluation of the effects on agriculture production 
        contributable to the increased competition for animal manure 
        use due to bioenergy production, including as a feedstock or a 
        replacement for fossil fuels.
    (b) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate the results of the 
study conducted under subsection (a).

SEC. 11015. INTERSTATE SHIPMENT OF MEAT AND POULTRY INSPECTED BY 
              FEDERAL AND STATE AGENCIES FOR CERTAIN SMALL 
              ESTABLISHMENTS.

    (a) Meat and Meat Products.--The Federal Meat Inspection Act (21 
U.S.C. 601 et seq.) is amended by adding at the end the following:

          ``TITLE V--INSPECTIONS BY FEDERAL AND STATE AGENCIES

``SEC. 501. INTERSTATE SHIPMENT OF MEAT INSPECTED BY FEDERAL AND STATE 
              AGENCIES FOR CERTAIN SMALL ESTABLISHMENTS.

    ``(a) Definitions.--
            ``(1) Appropriate state agency.--The term `appropriate 
        State agency' means a State agency described in section 301(b).
            ``(2) Designated personnel.--The term `designated 
        personnel' means inspection personnel of a State agency that 
        have undergone all necessary inspection training and 
        certification to assist the Secretary in the administration and 
        enforcement of this Act, including rules and regulations issued 
        under this Act.
            ``(3) Eligible establishment.--The term `eligible 
        establishment' means an establishment that is in compliance 
        with--
                    ``(A) the State inspection program of the State in 
                which the establishment is located; and
                    ``(B) this Act, including rules and regulations 
                issued under this Act.
            ``(4) Meat item.--The term `meat item' means--
                    ``(A) a portion of meat; and
                    ``(B) a meat food product.
            ``(5) Selected establishment.--The term `selected 
        establishment' means an eligible establishment that is selected 
        by the Secretary, in coordination with the appropriate State 
        agency of the State in which the eligible establishment is 
        located, under subsection (b) to ship carcasses, portions of 
        carcasses, and meat items in interstate commerce.
    ``(b) Authority of Secretary to Allow Shipments.--
            ``(1) In general.--Subject to paragraph (2), the Secretary, 
        in coordination with the appropriate State agency of the State 
        in which an establishment is located, may select the 
        establishment to ship carcasses, portions of carcasses, and 
        meat items in interstate commerce, and place on each carcass, 
        portion of a carcass, and meat item shipped in interstate 
        commerce a Federal mark, stamp, tag, or label of inspection, 
        if--
                    ``(A) the carcass, portion of carcass, or meat item 
                qualifies for the mark, stamp, tag, or label of 
                inspection under the requirements of this Act;
                    ``(B) the establishment is an eligible 
                establishment; and
                    ``(C) inspection services for the establishment are 
                provided by designated personnel.
            ``(2) Prohibited establishments.--In carrying out paragraph 
        (1), the Secretary, in coordination with an appropriate State 
        agency, shall not select an establishment that--
                    ``(A) on average, employs more than 25 employees 
                (including supervisory and nonsupervisory employees), 
                as defined by the Secretary;
                    ``(B) as of the date of the enactment of this 
                section, ships in interstate commerce carcasses, 
                portions of carcasses, or meat items that are inspected 
                by the Secretary in accordance with this Act;
                    ``(C)(i) is a Federal establishment;
                    ``(ii) was a Federal establishment that was 
                reorganized on a later date under the same name or a 
                different name or person by the person, firm, or 
                corporation that controlled the establishment as of the 
                date of the enactment of this section; or
                    ``(iii) was a State establishment as of the date of 
                the enactment of this section that--
                            ``(I) as of the date of the enactment of 
                        this section, employed more than 25 employees; 
                        and
                            ``(II) was reorganized on a later date by 
                        the person, firm, or corporation that 
                        controlled the establishment as of the date of 
                        the enactment of this section;
                    ``(D) is in violation of this Act;
                    ``(E) is located in a State that does not have a 
                State inspection program; or
                    ``(F) is the subject of a transition carried out in 
                accordance with a procedure developed by the Secretary 
                under paragraph (3)(A).
            ``(3) Establishments that employ more than 25 employees.--
                    ``(A) Development of procedure.--The Secretary may 
                develop a procedure to transition to a Federal 
                establishment any establishment under this section 
                that, on average, consistently employs more than 25 
                employees.
                    ``(B) Eligibility of certain establishments.--
                            ``(i) In general.--A State establishment 
                        that employs more than 25 employees but less 
                        than 35 employees as of the date of the 
                        enactment of this section may be selected as a 
                        selected establishment under this subsection.
                            ``(ii) Procedures.--A State establishment 
                        shall be subject to the procedures established 
                        under subparagraph (A) beginning on the date 
                        that is 3 years after the effective date 
                        described in subsection (j).
    ``(c) Reimbursement of State Costs.--The Secretary shall reimburse 
a State for costs related to the inspection of selected establishments 
in the State in accordance with Federal requirements in an amount of 
not less than 60 percent of eligible State costs.
    ``(d) Coordination Between Federal and State Agencies.--
            ``(1) In general.--The Secretary shall designate an 
        employee of the Federal Government as State coordinator for 
        each appropriate State agency--
                    ``(A) to provide oversight and enforcement of this 
                title; and
                    ``(B) to oversee the training and inspection 
                activities of designated personnel of the State agency.
            ``(2) Supervision.--A State coordinator shall be under the 
        direct supervision of the Secretary.
            ``(3) Duties of state coordinator.--
                    ``(A) In general.--A State coordinator shall visit 
                selected establishments with a frequency that is 
                appropriate to ensure that selected establishments are 
                operating in a manner that is consistent with this Act 
                (including regulations and policies under this Act).
                    ``(B) Quarterly reports.--A State coordinator 
                shall, on a quarterly basis, submit to the Secretary a 
                report that describes the status of each selected 
                establishment that is under the jurisdiction of the 
                State coordinator with respect to the level of 
                compliance of each selected establishment with the 
                requirements of this Act.
                    ``(C) Immediate notification requirement.--If a 
                State coordinator determines that any selected 
                establishment that is under the jurisdiction of the 
                State coordinator is in violation of any requirement of 
                this Act, the State coordinator shall--
                            ``(i) immediately notify the Secretary of 
                        the violation; and
                            ``(ii) deselect the selected establishment 
                        or suspend inspection at the selected 
                        establishment.
            ``(4) Performance evaluations.--Performance evaluations of 
        State coordinators designated under this subsection shall be 
        conducted by the Secretary as part of the Federal agency 
        management control system.
    ``(e) Audits.--
            ``(1) Periodic audits conducted by inspector general of the 
        department of agriculture.--Not later than 2 years after the 
        effective date described in subsection (j), and not less often 
        than every 3 years thereafter, the Inspector General of the 
        Department of Agriculture shall conduct an audit of each 
        activity taken by the Secretary under this section for the 
        period covered by the audit to determine compliance with this 
        section.
            ``(2) Audit conducted by comptroller general of the united 
        states.--Not earlier than 3 years, nor later than 5 years, 
        after the date of the enactment of this section, the 
        Comptroller General of the United States shall conduct an audit 
        of the implementation of this section to determine--
                    ``(A) the effectiveness of the implementation of 
                this section; and
                    ``(B) the number of selected establishments 
                selected by the Secretary to ship carcasses, portions 
                of carcasses, or meat items under this section.
    ``(f) Technical Assistance Division.--
            ``(1) Establishment.--Not later than 180 days after the 
        effective date described in subsection (j), the Secretary shall 
        establish in the Food Safety and Inspection Service of the 
        Department of Agriculture a technical assistance division to 
        coordinate the initiatives of any other appropriate agency of 
        the Department of Agriculture to provide--
                    ``(A) outreach, education, and training to very 
                small or certain small establishments (as defined by 
                the Secretary); and
                    ``(B) grants to appropriate State agencies to 
                provide outreach, technical assistance, education, and 
                training to very small or certain small establishments 
                (as defined by the Secretary).
            ``(2) Personnel.--The technical assistance division shall 
        be comprised of individuals that, as determined by the 
        Secretary--
                    ``(A) are of a quantity sufficient to carry out the 
                duties of the technical assistance division; and
                    ``(B) possess appropriate qualifications and 
                expertise relating to the duties of the technical 
                assistance division.
    ``(g) Transition Grants.--The Secretary may provide grants to 
appropriate State agencies to assist the appropriate State agencies in 
helping establishments covered by title III to transition to selected 
establishments.
    ``(h) Violations.--Any selected establishment that the Secretary 
determines to be in violation of any requirement of this Act shall be 
transitioned to a Federal establishment in accordance with a procedure 
developed by the Secretary under subsection (b)(3)(A).
    ``(i) Effect.--Nothing in this section limits the jurisdiction of 
the Secretary with respect to the regulation of meat and meat products 
under this Act.
    ``(j) Effective Date.--
            ``(1) In general.--This section takes effect on the date on 
        which the Secretary, after providing a period of public comment 
        (including through the conduct of public meetings or hearings), 
        promulgates final regulations to carry out this section.
            ``(2) Requirement.--Not later than 18 months after the date 
        of the enactment of this section, the Secretary shall 
        promulgate final regulations in accordance with paragraph 
        (1).''.
    (b) Poultry and Poultry Products.--The Poultry Products Inspection 
Act (21 U.S.C. 451 et seq.) is amended by adding at the end the 
following:

``SEC. 31. INTERSTATE SHIPMENT OF POULTRY INSPECTED BY FEDERAL AND 
              STATE AGENCIES FOR CERTAIN SMALL ESTABLISHMENTS.

    ``(a) Definitions.--
            ``(1) Appropriate state agency.--The term `appropriate 
        State agency' means a State agency described in section 
        5(a)(1).
            ``(2) Designated personnel.--The term `designated 
        personnel' means inspection personnel of a State agency that 
        have undergone all necessary inspection training and 
        certification to assist the Secretary in the administration and 
        enforcement of this Act, including rules and regulations issued 
        under this Act.
            ``(3) Eligible establishment.--The term `eligible 
        establishment' means an establishment that is in compliance 
        with--
                    ``(A) the State inspection program of the State in 
                which the establishment is located; and
                    ``(B) this Act, including rules and regulations 
                issued under this Act.
            ``(4) Poultry item.--The term `poultry item' means--
                    ``(A) a portion of poultry; and
                    ``(B) a poultry product.
            ``(5) Selected establishment.--The term `selected 
        establishment' means an eligible establishment that is selected 
        by the Secretary, in coordination with the appropriate State 
        agency of the State in which the eligible establishment is 
        located, under subsection (b) to ship poultry items in 
        interstate commerce.
    ``(b) Authority of Secretary to Allow Shipments.--
            ``(1) In general.--Subject to paragraph (2), the Secretary, 
        in coordination with the appropriate State agency of the State 
        in which an establishment is located, may select the 
        establishment to ship poultry items in interstate commerce, and 
        place on each poultry item shipped in interstate commerce a 
        Federal mark, stamp, tag, or label of inspection, if--
                    ``(A) the poultry item qualifies for the Federal 
                mark, stamp, tag, or label of inspection under the 
                requirements of this Act;
                    ``(B) the establishment is an eligible 
                establishment; and
                    ``(C) inspection services for the establishment are 
                provided by designated personnel.
            ``(2) Prohibited establishments.--In carrying out paragraph 
        (1), the Secretary, in coordination with an appropriate State 
        agency, shall not select an establishment that--
                    ``(A) on average, employs more than 25 employees 
                (including supervisory and nonsupervisory employees), 
                as defined by the Secretary;
                    ``(B) as of the date of the enactment of this 
                section, ships in interstate commerce carcasses, 
                portions of carcasses, or poultry items that are 
                inspected by the Secretary in accordance with this Act;
                    ``(C)(i) is a Federal establishment;
                    ``(ii) was a Federal establishment as of the date 
                of the enactment of this section, and was reorganized 
                on a later date under the same name or a different name 
                or person by the person, firm, or corporation that 
                controlled the establishment as of the date of the 
                enactment of this section; or
                    ``(iii) was a State establishment as of the date of 
                the enactment of this section that--
                            ``(I) as of the date of the enactment of 
                        this section, employed more than 25 employees; 
                        and
                            ``(II) was reorganized on a later date by 
                        the person, firm, or corporation that 
                        controlled the establishment as of the date of 
                        the enactment of this section;
                    ``(D) is in violation of this Act;
                    ``(E) is located in a State that does not have a 
                State inspection program; or
                    ``(F) is the subject of a transition carried out in 
                accordance with a procedure developed by the Secretary 
                under paragraph (3)(A).
            ``(3) Establishments that employ more than 25 employees.--
                    ``(A) Development of procedure.--The Secretary may 
                develop a procedure to transition to a Federal 
                establishment any establishment under this section 
                that, on average, consistently employs more than 25 
                employees.
                    ``(B) Eligibility of certain establishments.--
                            ``(i) In general.--A State establishment 
                        that employs more than 25 employees but less 
                        than 35 employees as of the date of the 
                        enactment of this section may be selected as a 
                        selected establishment under this subsection.
                            ``(ii) Procedures.--A State establishment 
                        shall be subject to the procedures established 
                        under subparagraph (A) beginning on the date 
                        that is 3 years after the effective date 
                        described in subsection (i).
    ``(c) Reimbursement of State Costs.--The Secretary shall reimburse 
a State for costs related to the inspection of selected establishments 
in the State in accordance with Federal requirements in an amount of 
not less than 60 percent of eligible State costs.
    ``(d) Coordination Between Federal and State Agencies.--
            ``(1) In general.--The Secretary shall designate an 
        employee of the Federal Government as State coordinator for 
        each appropriate State agency--
                    ``(A) to provide oversight and enforcement of this 
                section; and
                    ``(B) to oversee the training and inspection 
                activities of designated personnel of the State agency.
            ``(2) Supervision.--A State coordinator shall be under the 
        direct supervision of the Secretary.
            ``(3) Duties of state coordinator.--
                    ``(A) In general.--A State coordinator shall visit 
                selected establishments with a frequency that is 
                appropriate to ensure that selected establishments are 
                operating in a manner that is consistent with this Act 
                (including regulations and policies under this Act).
                    ``(B) Quarterly reports.--A State coordinator 
                shall, on a quarterly basis, submit to the Secretary a 
                report that describes the status of each selected 
                establishment that is under the jurisdiction of the 
                State coordinator with respect to the level of 
                compliance of each selected establishment with the 
                requirements of this Act.
                    ``(C) Immediate notification requirement.--If a 
                State coordinator determines that any selected 
                establishment that is under the jurisdiction of the 
                State coordinator is in violation of any requirement of 
                this Act, the State coordinator shall--
                            ``(i) immediately notify the Secretary of 
                        the violation; and
                            ``(ii) deselect the selected establishment 
                        or suspend inspection at the selected 
                        establishment.
            ``(4) Performance evaluations.--Performance evaluations of 
        State coordinators designated under this subsection shall be 
        conducted by the Secretary as part of the Federal agency 
        management control system.
    ``(e) Audits.--
            ``(1) Periodic audits conducted by inspector general of the 
        department of agriculture.--Not later than 2 years after the 
        effective date described in subsection (i), and not less often 
        than every 3 years thereafter, the Inspector General of the 
        Department of Agriculture shall conduct an audit of each 
        activity taken by the Secretary under this section for the 
        period covered by the audit to determine compliance with this 
        section.
            ``(2) Audit conducted by comptroller general of the united 
        states.--Not earlier than 3 years, nor later than 5 years, 
        after the date of the enactment of this section, the 
        Comptroller General of the United States shall conduct an audit 
        of the implementation of this section to determine--
                    ``(A) the effectiveness of the implementation of 
                this section; and
                    ``(B) the number of selected establishments 
                selected by the Secretary to ship poultry items under 
                this section.
    ``(f) Transition Grants.--The Secretary may provide grants to 
appropriate State agencies to assist the appropriate State agencies in 
helping establishments covered by this Act to transition to selected 
establishments.
    ``(g) Violations.--Any selected establishment that the Secretary 
determines to be in violation of any requirement of this Act shall be 
transitioned to a Federal establishment in accordance with a procedure 
developed by the Secretary under subsection (b)(3)(A).
    ``(h) Effect.--Nothing in this section limits the jurisdiction of 
the Secretary with respect to the regulation of poultry and poultry 
products under this Act.
    ``(i) Effective Date.--
            ``(1) In general.--This section takes effect on the date on 
        which the Secretary, after providing a period of public comment 
        (including through the conduct of public meetings or hearings), 
        promulgates final regulations to carry out this section.
            ``(2) Requirement.--Not later than 18 months after the date 
        of the enactment of this section, the Secretary shall 
        promulgate final regulations in accordance with paragraph 
        (1).''.

SEC. 11016. INSPECTION AND GRADING.

    (a) Grading.--Section 203 of the Agricultural Marketing Act of 1946 
(7 U.S.C. 1622) is amended--
            (1) by redesignating subsection (n) as subsection (o); and
            (2) by inserting after subsection (m) the following new 
        subsection:
    ``(n) Grading Program.--To establish within the Department of 
Agriculture a voluntary fee based grading program for--
            ``(1) catfish (as defined by the Secretary under paragraph 
        (2) of section 1(w) of the Federal Meat Inspection Act (21 
        U.S.C. 601(w))); and
            ``(2) any additional species of farm-raised fish or farm-
        raised shellfish--
                    ``(A) for which the Secretary receives a petition 
                requesting such voluntary fee based grading; and
                    ``(B) that the Secretary considers appropriate.''.
    (b) Inspection.--
            (1) In general.--The Federal Meat Inspection Act is 
        amended--
                    (A) in section 1(w) (21 U.S.C. 601(w)) --
                            (i) by striking ``and'' at the end of 
                        paragraph (1);
                            (ii) by redesignating paragraph (2) as 
                        paragraph (3); and
                            (iii) by inserting after paragraph (1) the 
                        following new paragraph:
            ``(2) catfish, as defined by the Secretary; and'';
                    (B) by striking section 6 (21 U.S.C. 606) and 
                inserting the following new section:
    ``Sec. 6. (a) In General.--For the purposes hereinbefore set forth 
the Secretary shall cause to be made, by inspectors appointed for that 
purpose, an examination and inspection of all meat food products 
prepared for commerce in any slaughtering, meat-canning, salting, 
packing, rendering, or similar establishment, and for the purposes of 
any examination and inspection and inspectors shall have access at all 
times, by day or night, whether the establishment be operated or not, 
to every part of said establishment; and said inspectors shall mark, 
stamp, tag, or label as `Inspected and passed' all such products found 
to be not adulterated; and said inspectors shall label, mark, stamp, or 
tag as `Inspected and condemned' all such products found adulterated, 
and all such condemned meat food products shall be destroyed for food 
purposes, as hereinbefore provided, and the Secretary may remove 
inspectors from any establishment which fails to so destroy such 
condemned meat food products: Provided, That subject to the rules and 
regulations of the Secretary the provisions of this section in regard 
to preservatives shall not apply to meat food products for export to 
any foreign country and which are prepared or packed according to the 
specifications or directions of the foreign purchaser, when no 
substance is used in the preparation or packing thereof in conflict 
with the laws of the foreign country to which said article is to be 
exported; but if said article shall be in fact sold or offered for sale 
for domestic use or consumption then this proviso shall not exempt said 
article from the operation of all the other provisions of this chapter.
    ``(b) Catfish.--In the case of an examination and inspection under 
subsection (a) of a meat food product derived from catfish, the 
Secretary shall take into account the conditions under which the 
catfish is raised and transported to a processing establishment.''; and
                    (C) by adding at the end of title I the following 
                new section:
    ``Sec. 25.  Notwithstanding any other provision of this Act, the 
requirements of sections 3, 4, 5, 10(b), and 23 shall not apply to 
catfish.''.
            (2) Effective date.--
                    (A) In general.--The amendments made by paragraph 
                (1) shall not apply until the date on which the 
                Secretary of Agriculture issues final regulations 
                (after providing a period of public comment, including 
                through the conduct of public meetings or hearings, in 
                accordance with chapter 5 of title 5, United States 
                Code) to carry out such amendments.
                    (B) Regulations.--Not later than 18 months after 
                the date of the enactment of this Act, the Secretary of 
                Agriculture, in consultation with the Commissioner of 
                Food and Drugs, shall issue final regulations to carry 
                out the amendments made by paragraph (1).
            (3) Budget request.--Not later than 30 days after the date 
        of the enactment of this Act, the Secretary of Agriculture 
        shall submit to Congress an estimate of the costs of 
        implementing the amendments made by paragraph (1), including 
        the estimated--
                    (A) staff years;
                    (B) number of establishments;
                    (C) volume expected to be produced at such 
                establishments; and
                    (D) any other information used in estimating the 
                costs of implementing such amendments.

SEC. 11017. FOOD SAFETY IMPROVEMENT.

    (a) Federal Meat Inspection Act.--Title I of the Federal Meat 
Inspection Act is further amended by inserting after section 11 (21 
U.S.C. 611) the following:

``SEC. 12. NOTIFICATION.

    ``Any establishment subject to inspection under this Act that 
believes, or has reason to believe, that an adulterated or misbranded 
meat or meat food product received by or originating from the 
establishment has entered into commerce shall promptly notify the 
Secretary with regard to the type, amount, origin, and destination of 
the meat or meat food product.

``SEC. 13. PLANS AND REASSESSMENTS.

    ``The Secretary shall require that each establishment subject to 
inspection under this Act shall, at a minimum--
            ``(1) prepare and maintain current procedures for the 
        recall of all meat or meat food products produced and shipped 
        by the establishment;
            ``(2) document each reassessment of the process control 
        plans of the establishment; and
            ``(3) upon request, make the procedures and reassessed 
        process control plans available to inspectors appointed by the 
        Secretary for review and copying.''.
    (b) Poultry Products Inspection Act.--Section 10 of the Poultry 
Products Inspection Act (21 U.S.C. 459) is amended--
            (1) by striking the section heading and all that follows 
        through ``sec. 10. No establishment'' and inserting the 
        following:

``SEC. 10. COMPLIANCE BY ALL ESTABLISHMENTS.

    ``(a) In General.--No establishment''; and
            (2) by adding at the end the following:
    ``(b) Notification.--Any establishment subject to inspection under 
this Act that believes, or has reason to believe, that an adulterated 
or misbranded poultry or poultry product received by or originating 
from the establishment has entered into commerce shall promptly notify 
the Secretary with regard to the type, amount, origin, and destination 
of the poultry or poultry product.
    ``(c) Plans and Reassessments.--The Secretary shall require that 
each establishment subject to inspection under this Act shall, at a 
minimum--
            ``(1) prepare and maintain current procedures for the 
        recall of all poultry or poultry products produced and shipped 
        by the establishment;
            ``(2) document each reassessment of the process control 
        plans of the establishment; and
            ``(3) upon request, make the procedures and reassessed 
        process control plans available to inspectors appointed by the 
        Secretary for review and copying.''.

       TITLE XII--CROP INSURANCE AND DISASTER ASSISTANCE PROGRAMS

    Subtitle A--Crop Insurance and Agricultural Disaster Assistance

SEC. 12001. DEFINITION OF ORGANIC CROP.

    Section 502(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)) 
is amended--
            (1) by redesignating paragraphs (7) and (8) as paragraphs 
        (8) and (9), respectively; and
            (2) by inserting after paragraph (6) the following:
            ``(7) Organic crop.--The term `organic crop' means an 
        agricultural commodity that is organically produced consistent 
        with section 2103 of the Organic Foods Production Act of 1990 
        (7 U.S.C. 6502).''.

SEC. 12002. GENERAL POWERS.

    (a) In General.--Section 506 of the Federal Crop Insurance Act (7 
U.S.C. 1506) is amended--
            (1) in the first sentence of subsection (d), by striking 
        ``The Corporation'' and inserting ``Subject to section 
        508(j)(2)(A), the Corporation''; and
            (2) by striking subsection (n).
    (b) Conforming Amendments.--
            (1) Section 506 of the Federal Crop Insurance Act (7 U.S.C. 
        1506) is amended by redesignating subsections (o), (p), and (q) 
        as subsections (n), (o), and (p), respectively.
            (2) Section 521 of the Federal Crop Insurance Act (7 U.S.C. 
        1521) is amended by striking the last sentence.

SEC. 12003. REDUCTION IN LOSS RATIO.

    (a) Projected Loss Ratio.--Subsection (n)(2) of section 506 of the 
Federal Crop Insurance Act (7 U.S.C. 1506) (as redesignated by section 
12002(b)(1)) is amended--
            (1) in the paragraph heading, by striking ``as of october 
        1, 1998'';
            (2) by striking ``, on and after October 1, 1998,''; and
            (3) by striking ``1.075'' and inserting ``1.0''.
    (b) Premiums Required.--Section 508(d)(1) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(d)(1)) is amended by striking ``not 
greater than 1.1'' and all that follows and inserting ``not greater 
than--
                    ``(A) 1.1 through September 30, 1998;
                    ``(B) 1.075 for the period beginning October 1, 
                1998, and ending on the day before the date of 
                enactment of the Food, Conservation, and Energy Act of 
                2008; and
                    ``(C) 1.0 on and after the date of enactment of 
                that Act.''.

SEC. 12004. PREMIUMS ADJUSTMENTS.

    Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)) 
is amended by adding at the end the following:
            ``(9) Premium adjustments.--
                    ``(A) Prohibition.--Except as provided in 
                subparagraph (B), no person shall pay, allow, or give, 
                or offer to pay, allow, or give, directly or 
                indirectly, either as an inducement to procure 
                insurance or after insurance has been procured, any 
                rebate, discount, abatement, credit, or reduction of 
                the premium named in an insurance policy or any other 
                valuable consideration or inducement not specified in 
                the policy.
                    ``(B) Exceptions.--Subparagraph (A) does not apply 
                with respect to--
                            ``(i) a payment authorized under subsection 
                        (b)(5)(B);
                            ``(ii) a performance-based discount 
                        authorized under subsection (d)(3); or
                            ``(iii) a patronage dividend, or similar 
                        payment, that is paid--
                                    ``(I) by an entity that was 
                                approved by the Corporation to make 
                                such payments for the 2005, 2006, or 
                                2007 reinsurance year, in accordance 
                                with subsection (b)(5)(B) as in effect 
                                on the day before the date of enactment 
                                of this paragraph; and
                                    ``(II) in a manner consistent with 
                                the payment plan approved in accordance 
                                with that subsection for the entity by 
                                the Corporation for the applicable 
                                reinsurance year.''.

SEC. 12005. CONTROLLED BUSINESS INSURANCE.

    Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)) 
(as amended by section 12004) is amended by adding at the end the 
following:
            ``(10) Commissions.--
                    ``(A) Definition of immediate family.--In this 
                paragraph, the term `immediate family' means an 
                individual's father, mother, stepfather, stepmother, 
                brother, sister, stepbrother, stepsister, son, 
                daughter, stepson, stepdaughter, grandparent, grandson, 
                granddaughter, father-in-law, mother-in-law, brother-
                in-law, sister-in-law, son-in-law, daughter-in-law, the 
                spouse of the foregoing, and the individual's spouse.
                    ``(B) Prohibition.--No individual (including a 
                subagent) may receive directly, or indirectly through 
                an entity, any compensation (including any commission, 
                profit sharing, bonus, or any other direct or indirect 
                benefit) for the sale or service of a policy or plan of 
                insurance offered under this title if--
                            ``(i) the individual has a substantial 
                        beneficial interest, or a member of the 
                        individual's immediate family has a substantial 
                        beneficial interest, in the policy or plan of 
                        insurance; and
                            ``(ii) the total compensation to be paid to 
                        the individual with respect to the sale or 
                        service of the policies or plans of insurance 
                        that meet the condition described in clause (i) 
                        exceeds 30 percent or the percentage specified 
                        in State law, whichever is less, of the total 
                        of all compensation received directly or 
                        indirectly by the individual for the sale or 
                        service of all policies and plans of insurance 
                        offered under this title for the reinsurance 
                        year.
                    ``(C) Reporting.--Not later than 90 days after the 
                annual settlement date of the reinsurance year, any 
                individual that received directly or indirectly any 
                compensation for the service or sale of any policy or 
                plan of insurance offered under this title in the prior 
                reinsurance year shall certify to applicable approved 
                insurance providers that the compensation that the 
                individual received was in compliance with this 
                paragraph.
                    ``(D) Sanctions.--The procedural requirements and 
                sanctions prescribed in section 515(h) shall apply to 
                the prosecution of a violation of this paragraph.
                    ``(E) Applicability.--
                            ``(i) In general.--Sanctions for violations 
                        under this paragraph shall only apply to the 
                        individuals or entities directly responsible 
                        for the certification required under 
                        subparagraph (C) or the failure to comply with 
                        the requirements of this paragraph.
                            ``(ii) Prohibition.--No sanctions shall 
                        apply with respect to the policy or plans of 
                        insurance upon which compensation is received, 
                        including the reinsurance for those policies or 
                        plans.''.

SEC. 12006. ADMINISTRATIVE FEE.

    (a) In General.--Section 508(b)(5) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(b)(5)) is amended--
            (1) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) Basic fee.--Each producer shall pay an 
                administrative fee for catastrophic risk protection in 
                the amount of $300 per crop per county.''; and
            (2) in subparagraph (B)--
                    (A) by striking ``payment on behalf of producers'' 
                and inserting ``payment of catastrophic risk protection 
                fee on behalf of producers'';
                    (B) in clause (i)--
                            (i) by striking ``or other payment''; and
                            (ii) by striking ``with catastrophic risk 
                        protection or additional coverage'' and 
                        inserting ``through the payment of catastrophic 
                        risk protection administrative fees'';
                    (C) by striking clauses (ii) and (vi);
                    (D) by redesignating clauses (iii), (iv), and (v) 
                as clauses (ii), (iii), and (iv), respectively;
                    (E) in clause (iii) (as so redesignated), by 
                striking ``A policy or plan of insurance'' and 
                inserting ``Catastrophic risk protection coverage''; 
                and
                    (F) in clause (iv) (as so redesignated)--
                            (i) by striking ``or other arrangement 
                        under this subparagraph''; and
                            (ii) by striking ``additional''.
    (b) Repeal.--Section 748 of the Agriculture, Rural Development, 
Food and Drug Administration, and Related Agencies Appropriations Act, 
1999 (7 U.S.C. 1508 note; Public Law 105-277) is repealed.

SEC. 12007. TIME FOR PAYMENT.

    Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is 
amended--
            (1) in subsection (b)(5)(C), by striking ``the date that 
        premium'' and inserting ``the same date on which the premium'';
            (2) in subsection (c)(10), by adding at the end the 
        following:
                    ``(C) Time for payment.--Subsection (b)(5)(C) shall 
                apply with respect to the collection date for the 
                administrative fee.''; and
            (3) in subsection (d), by adding at the end the following:
            ``(4) Billing date for premiums.--Effective beginning with 
        the 2012 reinsurance year, the Corporation shall establish 
        August 15 as the billing date for premiums.''.

SEC. 12008. CATASTROPHIC COVERAGE REIMBURSEMENT RATE.

    Section 508(b)(11) of the Federal Crop Insurance Act (7 U.S.C. 
1508(b)(11)) is amended by striking ``8 percent'' and inserting ``6 
percent''.

SEC. 12009. GRAIN SORGHUM PRICE ELECTION.

    Section 508(c)(5) of the Federal Crop Insurance Act (7 U.S.C. 
1508(c)(5)) is amended by adding at the end the following:
                    ``(D) Grain sorghum price election.--
                            ``(i) In general.--The Corporation, in 
                        conjunction with the Secretary (referred to in 
                        this subparagraph as the `Corporation'), 
                        shall--
                                    ``(I) not later than 60 days after 
                                the date of enactment of this 
                                subparagraph, make available all 
                                methods and data, including data from 
                                the Economic Research Service, used by 
                                the Corporation to develop the expected 
                                market prices for grain sorghum under 
                                the production and revenue-based plans 
                                of insurance of the Corporation; and
                                    ``(II) request applicable data from 
                                the grain sorghum industry.
                            ``(ii) Expert reviewers.--
                                    ``(I) In general.--Not later than 
                                120 days after the date of enactment of 
                                this subparagraph, the Corporation 
                                shall contract individually with 5 
                                expert reviewers described in subclause 
                                (II) to develop and recommend a 
                                methodology for determining an expected 
                                market price for sorghum for both the 
                                production and revenue-based plans of 
                                insurance to more accurately reflect 
                                the actual price at harvest.
                                    ``(II) Requirements.--The expert 
                                reviewers under subclause (I) shall be 
                                comprised of agricultural economists 
                                with experience in grain sorghum and 
                                corn markets, of whom--
                                            ``(aa) 2 shall be 
                                        agricultural economists of 
                                        institutions of higher 
                                        education;
                                            ``(bb) 2 shall be 
                                        economists from within the 
                                        Department; and
                                            ``(cc) 1 shall be an 
                                        economist nominated by the 
                                        grain sorghum industry.
                            ``(iii) Recommendations.--
                                    ``(I) In general.--Not later than 
                                90 days after the date of contracting 
                                with the expert reviewers under clause 
                                (ii), the expert reviewers shall 
                                submit, and the Corporation shall make 
                                available to the public, the 
                                recommendations of the expert 
                                reviewers.
                                    ``(II) Consideration.--The 
                                Corporation shall consider the 
                                recommendations under subclause (I) 
                                when determining the appropriate 
                                pricing methodology to determine the 
                                expected market price for grain sorghum 
                                under both the production and revenue-
                                based plans of insurance.
                                    ``(III) Publication.--Not later 
                                than 60 days after the date on which 
                                the Corporation receives the 
                                recommendations of the expert 
                                reviewers, the Corporation shall 
                                publish the proposed pricing 
                                methodology for both the production and 
                                revenue-based plans of insurance for 
                                notice and comment and, during the 
                                comment period, conduct at least 1 
                                public meeting to discuss the proposed 
                                pricing methodologies.
                            ``(iv) Appropriate pricing methodology.--
                                    ``(I) In general.--Not later than 
                                180 days after the close of the comment 
                                period in clause (iii)(III), but 
                                effective not later than the 2010 crop 
                                year, the Corporation shall implement a 
                                pricing methodology for grain sorghum 
                                under the production and revenue-based 
                                plans of insurance that is transparent 
                                and replicable.
                                    ``(II) Interim methodology.--Until 
                                the date on which the new pricing 
                                methodology is implemented, the 
                                Corporation may continue to use the 
                                pricing methodology that the 
                                Corporation determines best establishes 
                                the expected market price.
                                    ``(III) Availability.--On an annual 
                                basis, the Corporation shall make 
                                available the pricing methodology and 
                                data used to determine the expected 
                                market prices for grain sorghum under 
                                the production and revenue-based plans 
                                of insurance, including any changes to 
                                the methodology used to determine the 
                                expected market prices for grain 
                                sorghum from the previous year.''.

SEC. 12010. PREMIUM REDUCTION AUTHORITY.

    Subsection 508(e) of the Federal Crop Insurance Act (7 U.S.C. 
1508(e)) is amended--
            (1) in paragraph (2), by striking ``paragraph (4)'' and 
        inserting ``paragraph (3)'';
            (2) by striking paragraph (3); and
            (3) by redesignating paragraphs (4) and (5) as paragraphs 
        (3) and (4), respectively.

SEC. 12011. ENTERPRISE AND WHOLE FARM UNITS.

    Section 508(e) of Federal Crop Insurance Act (7 U.S.C. 1508(e)) (as 
amended by section 12010) is amended by adding at the end the 
following:
            ``(5) Enterprise and whole farm units.--
                    ``(A) In general.--The Corporation may carry out a 
                pilot program under which the Corporation pays a 
                portion of the premiums for plans or policies of 
                insurance for which the insurable unit is defined on a 
                whole farm or enterprise unit basis that is higher than 
                would otherwise be paid in accordance with paragraph 
                (2).
                    ``(B) Amount.--The percentage of the premium paid 
                by the Corporation to a policyholder for a policy with 
                an enterprise or whole farm unit under this paragraph 
                shall, to the maximum extent practicable, provide the 
                same dollar amount of premium subsidy per acre that 
                would otherwise have been paid by the Corporation under 
                paragraph (2) if the policyholder had purchased a basic 
                or optional unit for the crop for the crop year.
                    ``(C) Limitation.--The amount of the premium paid 
                by the Corporation under this paragraph may not exceed 
                80 percent of the total premium for the enterprise or 
                whole farm unit policy.''.

SEC. 12012. PAYMENT OF PORTION OF PREMIUM FOR AREA REVENUE PLANS.

    Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) 
(as amended by section 12011) is amended--
            (1) in paragraph (2), in the matter preceding subparagraph 
        (A), by striking ``paragraph (4)'' and inserting ``paragraphs 
        (4), (6), and (7)''; and
            (2) by adding at the end the following:
            ``(6) Premium subsidy for area revenue plans.--Subject to 
        paragraph (4), in the case of a policy or plan of insurance 
        that covers losses due to a reduction in revenue in an area, 
        the amount of the premium paid by the Corporation shall be as 
        follows:
                    ``(A) In the case of additional area coverage equal 
                to or greater than 70 percent, but less than 75 
                percent, of the recorded county yield indemnified at 
                not greater than 100 percent of the expected market 
                price, the amount shall be equal to the sum of--
                            ``(i) 59 percent of the amount of the 
                        premium established under subsection 
                        (d)(2)(B)(i) for the coverage level selected; 
                        and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the coverage level 
                        selected to cover operating and administrative 
                        expenses.
                    ``(B) In the case of additional area coverage equal 
                to or greater than 75 percent, but less than 85 
                percent, of the recorded county yield indemnified at 
                not greater than 100 percent of the expected market 
                price, the amount shall be equal to the sum of--
                            ``(i) 55 percent of the amount of the 
                        premium established under subsection 
                        (d)(2)(B)(i) for the coverage level selected; 
                        and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the coverage level 
                        selected to cover operating and administrative 
                        expenses.
                    ``(C) In the case of additional area coverage equal 
                to or greater than 85 percent, but less than 90 
                percent, of the recorded county yield indemnified at 
                not greater than 100 percent of the expected market 
                price, the amount shall be equal to the sum of--
                            ``(i) 49 percent of the amount of the 
                        premium established under subsection 
                        (d)(2)(B)(i) for the coverage level selected; 
                        and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the coverage level 
                        selected to cover operating and administrative 
                        expenses.
                    ``(D) In the case of additional area coverage equal 
                to or greater than 90 percent of the recorded county 
                yield indemnified at not greater than 100 percent of 
                the expected market price, the amount shall be equal to 
                the sum of--
                            ``(i) 44 percent of the amount of the 
                        premium established under subsection 
                        (d)(2)(B)(i) for the coverage level selected; 
                        and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the coverage level 
                        selected to cover operating and administrative 
                        expenses.
            ``(7) Premium subsidy for area yield plans.--Subject to 
        paragraph (4), in the case of a policy or plan of insurance 
        that covers losses due to a loss of yield or prevented planting 
        in an area, the amount of the premium paid by the Corporation 
        shall be as follows:
                    ``(A) In the case of additional area coverage equal 
                to or greater than 70 percent, but less than 80 
                percent, of the recorded county yield indemnified at 
                not greater than 100 percent of the expected market 
                price, the amount shall be equal to the sum of--
                            ``(i) 59 percent of the amount of the 
                        premium established under subsection 
                        (d)(2)(B)(i) for the coverage level selected; 
                        and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the coverage level 
                        selected to cover operating and administrative 
                        expenses.
                    ``(B) In the case of additional area coverage equal 
                to or greater than 80 percent, but less than 90 
                percent, of the recorded county yield indemnified at 
                not greater than 100 percent of the expected market 
                price, the amount shall be equal to the sum of--
                            ``(i) 55 percent of the amount of the 
                        premium established under subsection 
                        (d)(2)(B)(i) for the coverage level selected; 
                        and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the coverage level 
                        selected to cover operating and administrative 
                        expenses.
                    ``(C) In the case of additional area coverage equal 
                to or greater than 90 percent, of the recorded county 
                yield indemnified at not greater than 100 percent of 
                the expected market price, the amount shall be equal to 
                the sum of--
                            ``(i) 51 percent of the amount of the 
                        premium established under subsection 
                        (d)(2)(B)(i) for the coverage level selected; 
                        and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the coverage level 
                        selected to cover operating and administrative 
                        expenses.''.

SEC. 12013. DENIAL OF CLAIMS.

    Section 508(j)(2)(A) of the Federal Crop Insurance Act (7 U.S.C. 
1508(j)(2)(A)) is amended by inserting ``on behalf of the Corporation'' 
after ``approved provider''.

SEC. 12014. SETTLEMENT OF CROP INSURANCE CLAIMS ON FARM-STORED 
              PRODUCTION.

    (a) In General.--Section 508(j) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(j)) is amended by adding at the end the following:
            ``(5) Settlement of claims on farm-stored production.--A 
        producer with farm-stored production may, at the option of the 
        producer, delay settlement of a crop insurance claim relating 
        to the farm-stored production for up to 4 months after the last 
        date on which claims may be submitted under the policy of 
        insurance.''.
    (b) Study on the Efficacy of Pack Factors.--
            (1) In general.--The Secretary shall conduct a study of the 
        efficacy and accuracy of the application of pack factors 
        regarding the measurement of farm-stored production for 
        purposes of providing policies or plans of insurance under the 
        Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
            (2) Considerations.--The study shall consider--
                    (A) structural shape and size;
                    (B) time in storage;
                    (C) the impact of facility aeration systems; and
                    (D) any other factors the Secretary considers 
                appropriate.
            (3) Report.--Not later than 3 years after the date of 
        enactment of this Act, the Secretary shall submit to the 
        Committee on Agriculture of the House of Representatives and 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate a report that includes the findings of the study and any 
        related policy recommendations.

SEC. 12015. TIME FOR REIMBURSEMENT.

    Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)(4)) is amended by adding at the end the following:
                    ``(D) Time for reimbursement.--Effective beginning 
                with the 2012 reinsurance year, the Corporation shall 
                reimburse approved insurance providers and agents for 
                the allowable administrative and operating costs of the 
                providers and agents as soon as practicable after 
                October 1 (but not later than October 31) after the 
                reinsurance year for which reimbursements are 
                earned.''.

SEC. 12016. REIMBURSEMENT RATE.

    Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)(4)) (as amended by section 12015) is amended--
            (1) in subparagraph (A), by striking ``Except as provided 
        in subparagraph (B)'' and inserting ``Except as otherwise 
        provided in this paragraph''; and
            (2) by adding at the end the following:
                    ``(E) Reimbursement rate reduction.--In the case of 
                a policy of additional coverage that received a rate of 
                reimbursement for administrative and operating costs 
                for the 2008 reinsurance year, for each of the 2009 and 
                subsequent reinsurance years, the reimbursement rate 
                for administrative and operating costs shall be 2.3 
                percentage points below the rates in effect as of the 
                date of enactment of the Food, Conservation, and Energy 
                Act of 2008 for all crop insurance policies used to 
                define loss ratio, except that only \1/2\ of the 
                reduction shall apply in a reinsurance year to the 
                total premium written in a State in which the State 
                loss ratio is greater than 1.2.
                    ``(F) Reimbursement rate for area policies and 
                plans of insurance.--Notwithstanding subparagraphs (A) 
                through (E), for each of the 2009 and subsequent 
                reinsurance years, the reimbursement rate for area 
                policies and plans of insurance widely available as of 
                the date of enactment of this subparagraph shall be 12 
                percent of the premium used to define loss ratio for 
                that reinsurance year.''.

SEC. 12017. RENEGOTIATION OF STANDARD REINSURANCE AGREEMENT.

    Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) 
is amended by adding at the end the following:
            ``(8) Renegotiation of standard reinsurance agreement.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), notwithstanding section 536 of the 
                Agricultural Research, Extension, and Education Reform 
                Act of 1998 (7 U.S.C. 1506 note; Public Law 105-185) 
                and section 148 of the Agricultural Risk Protection Act 
                of 2000 (7 U.S.C. 1506 note; Public Law 106-224), the 
                Corporation may renegotiate the financial terms and 
                conditions of each Standard Reinsurance Agreement--
                            ``(i) to be effective for the 2011 
                        reinsurance year beginning July 1, 2010; and
                            ``(ii) once during each period of 5 
                        reinsurance years thereafter.
                    ``(B) Exceptions.--
                            ``(i) Adverse circumstances.--Subject to 
                        clause (ii), subparagraph (A) shall not apply 
                        in any case in which the approved insurance 
                        providers, as a whole, experience unexpected 
                        adverse circumstances, as determined by the 
                        Secretary.
                            ``(ii) Effect of federal law changes.--If 
                        Federal law is enacted after the date of 
                        enactment of this paragraph that requires 
                        revisions in the financial terms of the 
                        Standard Reinsurance Agreement, and changes in 
                        the Agreement are made on a mandatory basis by 
                        the Corporation, the changes shall not be 
                        considered to be a renegotiation of the 
                        Agreement for purposes of subparagraph (A).
                    ``(C) Notification requirement.--If the Corporation 
                renegotiates a Standard Reinsurance Agreement under 
                subparagraph (A)(iii), the Corporation shall notify the 
                Committee on Agriculture of the House of 
                Representatives and the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate of the 
                renegotiation.
                    ``(D) Consultation.--The approved insurance 
                providers may confer with each other and collectively 
                with the Corporation during any renegotiation under 
                subparagraph (A).
                    ``(E) 2011 reinsurance year.--
                            ``(i) In general.--As part of the Standard 
                        Reinsurance Agreement renegotiation authorized 
                        under subparagraph (A)(i), the Corporation 
                        shall consider alternative methods to determine 
                        reimbursement rates for administrative and 
                        operating costs.
                            ``(ii) Alternative methods.--Alternatives 
                        considered under clause (i) shall include--
                                    ``(I) methods that--
                                            ``(aa) are graduated and 
                                        base reimbursement rates in a 
                                        State on changes in premiums in 
                                        that State;
                                            ``(bb) are graduated and 
                                        base reimbursement rates in a 
                                        State on the loss ratio for 
                                        crop insurance for that State; 
                                        and
                                            ``(cc) are graduated and 
                                        base reimbursement rates on 
                                        individual policies on the 
                                        level of total premium for each 
                                        policy; and
                                    ``(II) any other method that takes 
                                into account current financial 
                                conditions of the program and ensures 
                                continued availability of the program 
                                to producers on a nationwide basis.''.

SEC. 12018. CHANGE IN DUE DATE FOR CORPORATION PAYMENTS FOR 
              UNDERWRITING GAINS.

    Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) 
(as amended by section 12017) is amended by adding at the end the 
following:
            ``(9) Due date for payment of underwriting gains.--
        Effective beginning with the 2011 reinsurance year, the 
        Corporation shall make payments for underwriting gains under 
        this title on--
                    ``(A) for the 2011 reinsurance year, October 1, 
                2012; and
                    ``(B) for each reinsurance year thereafter, October 
                1 of the following calendar year.''.

SEC. 12019. MALTING BARLEY.

    Section 508(m) of the Federal Crop Insurance Act (7 U.S.C. 1508(m)) 
is amended by adding at the end the following:
            ``(5) Special provisions for malting barley.--The 
        Corporation shall promulgate special provisions under this 
        subsection specific to malting barley, taking into 
        consideration any changes in quality factors, as required by 
        applicable market conditions.''.

SEC. 12020. CROP PRODUCTION ON NATIVE SOD.

    (a) Federal Crop Insurance.--Section 508 of the Federal Crop 
Insurance Act (7 U.S.C. 1508) is amended by adding at the end the 
following:
    ``(o) Crop Production on Native Sod.--
            ``(1) Definition of native sod.--In this subsection, the 
        term `native sod' means land--
                    ``(A) on which the plant cover is composed 
                principally of native grasses, grasslike plants, forbs, 
                or shrubs suitable for grazing and browsing; and
                    ``(B) that has never been tilled for the production 
                of an annual crop as of the date of enactment of this 
                subsection.
            ``(2) Ineligibility for benefits.--
                    ``(A) In general.--Subject to subparagraph (B) and 
                paragraph (3), native sod acreage that has been tilled 
                for the production of an annual crop after the date of 
                enactment of this subsection shall be ineligible during 
                the first 5 crop years of planting, as determined by 
                the Secretary, for benefits under--
                            ``(i) this title; and
                            ``(ii) section 196 of the Federal 
                        Agriculture Improvement and Reform Act of 1996 
                        (7 U.S.C. 7333).
                    ``(B) De minimis acreage exemption.--The Secretary 
                shall exempt areas of 5 acres or less from subparagraph 
                (A).
            ``(3) Application.--Paragraph (2) may apply to native sod 
        acreage in the Prairie Pothole National Priority Area at the 
        election of the Governor of the respective State.''.
    (b) Noninsured Crop Disaster Assistance.--Section 196(a) of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7333(a)) is amended by adding at the end the following:
            ``(4) Program ineligibility relating to crop production on 
        native sod.--
                    ``(A) Definition of native sod.--In this paragraph, 
                the term `native sod' means land--
                            ``(i) on which the plant cover is composed 
                        principally of native grasses, grasslike 
                        plants, forbs, or shrubs suitable for grazing 
                        and browsing; and
                            ``(ii) that has never been tilled for the 
                        production of an annual crop as of the date of 
                        enactment of this paragraph.
                    ``(B) Ineligibility for benefits.--
                            ``(i) In general.--Subject to clause (ii) 
                        and subparagraph (C), native sod acreage that 
                        has been tilled for the production of an annual 
                        crop after the date of enactment of this 
                        paragraph shall be ineligible during the first 
                        5 crop years of planting, as determined by the 
                        Secretary, for benefits under--
                                    ``(I) this section; and
                                    ``(II) the Federal Crop Insurance 
                                Act (7 U.S.C. 1501 et seq.).
                            ``(ii) De minimis acreage exemption.--The 
                        Secretary shall exempt areas of 5 acres or less 
                        from clause (i).
                    ``(C) Application.--Subparagraph (B) may apply to 
                native sod acreage in the Prairie Pothole National 
                Priority Area at the election of the Governor of the 
                respective State.''.

SEC. 12021. INFORMATION MANAGEMENT.

    Section 515 of the Federal Crop Insurance Act (7 U.S.C. 1515) is 
amended--
     (a) in subsection (j)(3), by adding before the period at the end 
the following: ``, which shall be subject to competition on a periodic 
basis, as determined by the Secretary''; and
    (b) by striking subsection (k) and inserting the following:
    ``(k) Funding.--
            ``(1) Information technology.--To carry out subsection 
        (j)(1), the Corporation may use, from amounts made available 
        from the insurance fund established under section 516(c), not 
        more than $15,000,000 for each of fiscal years 2008 through 
        2011.
            ``(2) Data mining.--To carry out subsection (j)(2), the 
        Corporation may use, from amounts made available from the 
        insurance fund established under section 516(c), not more than 
        $4,000,000 for fiscal year 2009 and each subsequent fiscal 
        year.''.

SEC. 12022. RESEARCH AND DEVELOPMENT.

    (a) In General.--Section 522(b) of the Federal Crop Insurance Act 
(7 U.S.C. 1522(b)) is amended by striking paragraphs (1) and (2) and 
inserting the following:
            ``(1) Research and development payment.--
                    ``(A) In general.--The Corporation shall provide a 
                payment to an applicant for research and development 
                costs in accordance with this subsection.
                    ``(B) Reimbursement.--An applicant who submits a 
                policy under section 508(h) shall be eligible for the 
                reimbursement of reasonable research and development 
                costs directly related to the policy if the policy is 
                approved by the Board for sale to producers.
            ``(2) Advance payments.--
                    ``(A) In general.--Subject to the other provisions 
                of this paragraph, the Board may approve the request of 
                an applicant for advance payment of a portion of 
                reasonable research and development costs prior to 
                submission and approval of the policy by the Board 
                under section 508(h).
                    ``(B) Procedures.--The Board shall establish 
                procedures for approving advance payment of reasonable 
                research and development costs to applicants.
                    ``(C) Concept proposal.--As a condition of 
                eligibility for advance payments, an applicant shall 
                submit a concept proposal for the policy that the 
                applicant plans to submit to the Board under section 
                508(h), consistent with procedures established by the 
                Board for submissions under subparagraph (B), 
                including--
                            ``(i) a summary of the qualifications of 
                        the applicant, including any prior concept 
                        proposals and submissions to the Board under 
                        section 508(h) and, if applicable, any work 
                        conducted under this section;
                            ``(ii) a projection of total research and 
                        development costs that the applicant expects to 
                        incur;
                            ``(iii) a description of the need for the 
                        policy, the marketability of and expected 
                        demand for the policy among affected producers, 
                        and the potential impact of the policy on 
                        producers and the crop insurance delivery 
                        system;
                            ``(iv) a summary of data sources available 
                        to demonstrate that the policy can reasonably 
                        be developed and actuarially appropriate rates 
                        established; and
                            ``(v) an identification of the risks the 
                        proposed policy will cover and an explanation 
                        of how the identified risks are insurable under 
                        this title.
                    ``(D) Review.--
                            ``(i) Experts.--If the requirements of 
                        subparagraph (B) and (C) are met, the Board may 
                        submit a concept proposal described in 
                        subparagraph (C) to not less than 2 independent 
                        expert reviewers, whose services are 
                        appropriate for the type of concept proposal 
                        submitted, to assess the likelihood that the 
                        proposed policy being developed will result in 
                        a viable and marketable policy, as determined 
                        by the Board.
                            ``(ii) Timing.--The time frames described 
                        in subparagraphs (C) and (D) of section 
                        508(h)(4) shall apply to the review of concept 
                        proposals under this subparagraph.
                    ``(E) Approval.--The Board may approve up to 50 
                percent of the projected total research and development 
                costs to be paid in advance to an applicant, in 
                accordance with the procedures developed by the Board 
                for the making of such payments, if, after 
                consideration of the reviewer reports described in 
                subparagraph (D) and such other information as the 
                Board determines appropriate, the Board determines 
                that--
                            ``(i) the concept, in good faith, will 
                        likely result in a viable and marketable policy 
                        consistent with section 508(h);
                            ``(ii) in the sole opinion of the Board, 
                        the concept, if developed into a policy and 
                        approved by the Board, would provide crop 
                        insurance coverage--
                                    ``(I) in a significantly improved 
                                form;
                                    ``(II) to a crop or region not 
                                traditionally served by the Federal 
                                crop insurance program; or
                                    ``(III) in a form that addresses a 
                                recognized flaw or problem in the 
                                program;
                            ``(iii) the applicant agrees to provide 
                        such reports as the Corporation determines are 
                        necessary to monitor the development effort;
                            ``(iv) the proposed budget and timetable 
                        are reasonable; and
                            ``(v) the concept proposal meets any other 
                        requirements that the Board determines 
                        appropriate.
                    ``(F) Submission of policy.--If the Board approves 
                an advanced payment under subparagraph (E), the Board 
                shall establish a date by which the applicant shall 
                present a submission in compliance with section 508(h) 
                (including the procedures implemented under that 
                section) to the Board for approval.
                    ``(G) Final payment.--
                            ``(i) Approved policies.--If a policy is 
                        submitted under subparagraph (F) and approved 
                        by the Board under section 508(h) and the 
                        procedures established by the Board (including 
                        procedures established under subparagraph (B)), 
                        the applicant shall be eligible for a payment 
                        of reasonable research and development costs in 
                        the same manner as policies reimbursed under 
                        paragraph (1)(B), less any payments made 
                        pursuant to subparagraph (E).
                            ``(ii) Policies not approved.--If a policy 
                        is submitted under subparagraph (F) and is not 
                        approved by the Board under section 508(h), the 
                        Corporation shall--
                                    ``(I) not seek a refund of any 
                                payments made in accordance with this 
                                paragraph; and
                                    ``(II) not make any further 
                                research and development cost payments 
                                associated with the submission of the 
                                policy under this paragraph.
                    ``(H) Policy not submitted.--If an applicant 
                receives an advance payment and fails to fulfill the 
                obligation of the applicant to the Board by not 
                submitting a completed submission without just cause 
                and in accordance with the procedures established under 
                subparagraph (B)), including notice and reasonable 
                opportunity to respond, as determined by the Board, the 
                applicant shall return to the Board the amount of the 
                advance plus interest.
                    ``(I) Repeated submissions.--The Board may prohibit 
                advance payments to applicants who have submitted--
                            ``(i) a concept proposal or submission that 
                        did not result in a marketable product; or
                            ``(ii) a concept proposal or submission of 
                        poor quality.
                    ``(J) Continued eligibility.--A determination that 
                an applicant is not eligible for advance payments under 
                this paragraph shall not prevent an applicant from 
                reimbursement under paragraph (1)(B).''.
    (b) Conforming Amendments.--Section 522(b) of the Federal Crop 
Insurance Act (7 U.S.C. 1522(b)) is amended--
            (1) in paragraph (3), by striking ``or (2)''; and
            (2) in paragraph (4)(A), by striking ``and (2)''.''

SEC. 12023. CONTRACTS FOR ADDITIONAL POLICIES AND STUDIES.

    Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522) is 
amended--
            (1) by redesignating paragraph (10) as paragraph (17); and
            (2) by inserting after paragraph (9) the following:
            ``(10) Contracts for organic production coverage 
        improvements.--
                    ``(A) Contracts required.--Not later than 180 days 
                after the date of enactment of the Food, Conservation, 
                and Energy Act of 2008, the Corporation shall enter 
                into 1 or more contracts for the development of 
                improvements in Federal crop insurance policies 
                covering crops produced in compliance with standards 
                issued by the Department of Agriculture under the 
                national organic program established under the Organic 
                Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).
                    ``(B) Review of underwriting risk and loss 
                experience.--
                            ``(i) Review required.--
                                    ``(I) In general.--A contract under 
                                subparagraph (A) shall include a review 
                                of the underwriting, risk, and loss 
                                experience of organic crops covered by 
                                the Corporation, as compared with the 
                                same crops produced in the same 
                                counties and during the same crop years 
                                using nonorganic methods.
                                    ``(II) Requirements.--The review 
                                shall--
                                            ``(aa) to the maximum 
                                        extent practicable, be designed 
                                        to allow the Corporation to 
                                        determine whether significant, 
                                        consistent, or systemic 
                                        variations in loss history 
                                        exist between organic and 
                                        nonorganic production;
                                            ``(bb) include the widest 
                                        available range of data 
                                        collected by the Secretary and 
                                        other outside sources of 
                                        information; and
                                            ``(cc) not be limited to 
                                        loss history under existing 
                                        crop insurance policies.
                            ``(ii) Effect on premium surcharge.--Unless 
                        the review under this subparagraph documents 
                        the existence of significant, consistent, and 
                        systemic variations in loss history between 
                        organic and nonorganic crops, either 
                        collectively or on an individual crop basis, 
                        the Corporation shall eliminate or reduce the 
                        premium surcharge that the Corporation charges 
                        for coverage for organic crops, as determined 
                        in accordance with the results.
                            ``(iii) Annual updates.--Beginning with the 
                        2009 crop year, the review under this 
                        subparagraph shall be updated on an annual 
                        basis as data is accumulated by the Secretary 
                        and other sources, so that the Corporation may 
                        make determinations regarding adjustments to 
                        the surcharge in a timely manner as quickly as 
                        evolving practices and data trends allow.
                    ``(C) Additional price election.--
                            ``(i) In general.--A contract under 
                        subparagraph (A) shall include the development 
                        of a procedure, including any associated 
                        changes in policy terms or materials required 
                        for implementation of the procedure, to offer 
                        producers of organic crops an additional price 
                        election that reflects actual prices received 
                        by organic producers for crops from the field 
                        (including appropriate retail and wholesale 
                        prices), as established using data collected 
                        and maintained by the Secretary or from other 
                        sources.
                            ``(ii) Timing.--The development of the 
                        procedure shall be completed in a timely manner 
                        to allow the Corporation to begin offering the 
                        additional price election for organic crops 
                        with sufficient data for the 2010 crop year.
                            ``(iii) Expansion.--The procedure shall be 
                        expanded as quickly as practicable as 
                        additional data on prices of organic crops 
                        collected by the Secretary and other sources of 
                        information becomes available, with a goal of 
                        applying this procedure to all organic crops 
                        not later than the fifth full crop year that 
                        begins after the date of enactment of Food, 
                        Conservation, and Energy Act of 2008.
                    ``(D) Reporting requirements.--
                            ``(i) In general.--The Corporation shall 
                        submit to the Committee on Agriculture of the 
                        House of Representatives and the Committee on 
                        Agriculture, Nutrition, and Forestry of the 
                        Senate an annual report on progress made in 
                        developing and improving Federal crop insurance 
                        for organic crops, including--
                                    ``(I) the numbers and varieties of 
                                organic crops insured;
                                    ``(II) the development of new 
                                insurance approaches; and
                                    ``(III) the progress of 
                                implementing the initiatives required 
                                under this paragraph, including the 
                                rate at which additional price 
                                elections are adopted for organic 
                                crops.
                            ``(ii) Recommendations.--The report shall 
                        include such recommendations as the Corporation 
                        considers appropriate to improve Federal crop 
                        insurance coverage for organic crops.
            ``(11) Energy crop insurance policy.--
                    ``(A) Definition of dedicated energy crop.--In this 
                subsection, the term `dedicated energy crop' means an 
                annual or perennial crop that--
                            ``(i) is grown expressly for the purpose of 
                        producing a feedstock for renewable biofuel, 
                        renewable electricity, or biobased products; 
                        and
                            ``(ii) is not typically used for food, 
                        feed, or fiber.
                    ``(B) Authority.--The Corporation shall offer to 
                enter into 1 or more contracts with qualified entities 
                to carry out research and development regarding a 
                policy to insure dedicated energy crops.
                    ``(C) Research and development.--Research and 
                development described in subparagraph (B) shall 
                evaluate the effectiveness of risk management tools for 
                the production of dedicated energy crops, including 
                policies and plans of insurance that--
                            ``(i) are based on market prices and 
                        yields;
                            ``(ii) to the extent that insufficient data 
                        exist to develop a policy based on market 
                        prices and yields, evaluate the policies and 
                        plans of insurance based on the use of weather 
                        or rainfall indices to protect the interests of 
                        crop producers; and
                            ``(iii) provide protection for production 
                        or revenue losses, or both.
            ``(12) Aquaculture insurance policy.--
                    ``(A) Definition of aquaculture.--In this 
                subsection:
                            ``(i) In general.--The term `aquaculture' 
                        means the propagation and rearing of aquatic 
                        species in controlled or selected environments, 
                        including shellfish cultivation on grants or 
                        leased bottom and ocean ranching.
                            ``(ii) Exclusion.--The term `aquaculture' 
                        does not include the private ocean ranching of 
                        Pacific salmon for profit in any State in which 
                        private ocean ranching of Pacific salmon is 
                        prohibited by any law (including regulations).
                    ``(B) Authority.--
                            ``(i) In general.--As soon as practicable 
                        after the date of enactment of the Food, 
                        Conservation, and Energy Act of 2008, the 
                        Corporation shall offer to enter into 3 or more 
                        contracts with qualified entities to carry out 
                        research and development regarding a policy to 
                        insure the production of aquacultural species 
                        in aquaculture operations.
                            ``(ii) Bivalve species.--At least 1 of the 
                        contracts described in clause (i) shall address 
                        insurance of bivalve species, including--
                                    ``(I) American oysters (crassostrea 
                                virginica);
                                    ``(II) hard clams (mercenaria 
                                mercenaria);
                                    ``(III) Pacific oysters 
                                (crassostrea gigas);
                                    ``(IV) Manila clams (tapes 
                                phillipinnarium); or
                                    ``(V) blue mussels (mytilus 
                                edulis).
                            ``(iii) Freshwater species.--At least 1 of 
                        the contracts described in clause (i) shall 
                        address insurance of freshwater species, 
                        including--
                                    ``(I) catfish (icataluridae);
                                    ``(II) rainbow trout (oncorhynchus 
                                mykiss);
                                    ``(III) largemouth bass 
                                (micropterus salmoides);
                                    ``(IV) striped bass (morone 
                                saxatilis);
                                    ``(V) bream (abramis brama);
                                    ``(VI) shrimp (penaeus); or
                                    ``(VII) tilapia (oreochromis 
                                niloticus).
                            ``(iv) Saltwater species.--At least 1 of 
                        the contracts described in clause (i) shall 
                        address insurance of saltwater species, 
                        including--
                                    ``(I) Atlantic salmon (salmo 
                                salar); or
                                    ``(II) shrimp (penaeus).
                    ``(C) Research and development.--Research and 
                development described in subparagraph (B) shall 
                evaluate the effectiveness of policies and plans of 
                insurance for the production of aquacultural species in 
                aquaculture operations, including policies and plans of 
                insurance that--
                            ``(i) are based on market prices and 
                        yields;
                            ``(ii) to the extent that insufficient data 
                        exist to develop a policy based on market 
                        prices and yields, evaluate how best to 
                        incorporate insuring of production of 
                        aquacultural species in aquaculture operations 
                        into existing policies covering adjusted gross 
                        revenue; and
                            ``(iii) provide protection for production 
                        or revenue losses, or both.
            ``(13) Poultry insurance policy.--
                    ``(A) Definition of poultry.--In this paragraph, 
                the term `poultry' has the meaning given the term in 
                section 2(a) of the Packers and Stockyards Act, 1921 (7 
                U.S.C. 182(a)).
                    ``(B) Authority.--The Corporation shall offer to 
                enter into 1 or more contracts with qualified entities 
                to carry out research and development regarding a 
                policy to insure commercial poultry production.
                    ``(C) Research and development.--Research and 
                development described in subparagraph (B) shall 
                evaluate the effectiveness of risk management tools for 
                the production of poultry, including policies and plans 
                of insurance that provide protection for production or 
                revenue losses, or both, while the poultry is in 
                production.
            ``(14) Apiary policies.--The Corporation shall offer to 
        enter into a contract with a qualified entity to carry out 
        research and development regarding insurance policies that 
        cover loss of bees.
            ``(15) Adjusted gross revenue policies for beginning 
        producers.--The Corporation shall offer to enter into a 
        contract with a qualified entity to carry out research and 
        development into needed modifications of adjusted gross revenue 
        insurance policies, consistent with principles of actuarial 
        sufficiency, to permit coverage for beginning producers with no 
        previous production history, including permitting those 
        producers to have production and premium rates based on 
        information with similar farming operations.
            ``(16) Skiprow cropping practices.--
                    ``(A) In general.--The Corporation shall offer to 
                enter into a contract with a qualified entity to carry 
                out research into needed modifications of policies to 
                insure corn and sorghum produced in the Central Great 
                Plains (as determined by the Agricultural Research 
                Service) through use of skiprow cropping practices.
                    ``(B) Research.--Research described in subparagraph 
                (A) shall--
                            ``(i) review existing research on skiprow 
                        cropping practices and actual production 
                        history of producers using skiprow cropping 
                        practices; and
                            ``(ii) evaluate the effectiveness of risk 
                        management tools for producers using skiprow 
                        cropping practices, including--
                                    ``(I) the appropriateness of rules 
                                in existence as of the date of 
                                enactment of this paragraph relating to 
                                the determination of acreage planted in 
                                skiprow patterns; and
                                    ``(II) whether policies for crops 
                                produced through skiprow cropping 
                                practices reflect actual production 
                                capabilities.''.

SEC. 12024. FUNDING FROM INSURANCE FUND.

    Section 522(e) of the Federal Crop Insurance Act (7 U.S.C. 1522(e)) 
is amended--
            (1) in paragraph (1), by striking ``$10,000,000'' and all 
        that follows through the end of the paragraph and inserting 
        ``$7,500,000 for fiscal year 2008 and each subsequent fiscal 
        year'';
            (2) in paragraph (2)(A), by striking ``$20,000,000 for'' 
        and all that follows through ``year 2004'' and inserting 
        ``$12,500,000 for fiscal year 2008''; and
            (3) in paragraph (3), by striking ``the Corporation may 
        use'' and all that follows through the end of the paragraph and 
        inserting ``the Corporation may use--
                    ``(A) not more than $5,000,000 for each fiscal year 
                to improve program integrity, including by--
                            ``(i) increasing compliance-related 
                        training;
                            ``(ii) improving analysis tools and 
                        technology regarding compliance;
                            ``(iii) use of information technology, as 
                        determined by the Corporation; and
                            ``(iv) identifying and using innovative 
                        compliance strategies; and
                    ``(B) any excess amounts to carry out other 
                activities authorized under this section.''.

SEC. 12025. PILOT PROGRAMS.

    (a) In General.--Section 523 of the Federal Crop Insurance Act (7 
U.S.C. 1523) is amended by adding at the end the following:
    ``(f) Camelina Pilot Program.--
            ``(1) In general.--The Corporation shall establish a pilot 
        program under which producers or processors of camelina may 
        propose for approval by the Board policies or plans of 
        insurance for camelina, in accordance with section 508(h).
            ``(2) Determination by board.--The Board shall approve a 
        policy or plan of insurance proposed under paragraph (1) if, as 
        determined by the Board, the policy or plan of insurance--
                    ``(A) protects the interests of producers;
                    ``(B) is actuarially sound; and
                    ``(C) meets the requirements of this title.
            ``(3) Timeframe.--The Corporation shall commence the 
        camelina insurance pilot program as soon as practicable after 
        the date of enactment of this subsection.
    ``(g) Sesame Insurance Pilot Program.--
            ``(1) In general.--In addition to any other authority of 
        the Corporation, the Corporation shall establish and carry out 
        a pilot program under which a producer of nondehiscent sesame 
        under contract may elect to obtain multiperil crop insurance, 
        as determined by the Corporation.
            ``(2) Terms and conditions.--The multiperil crop insurance 
        offered under the sesame insurance pilot program shall--
                    ``(A) be offered through reinsurance arrangements 
                with private insurance companies;
                    ``(B) be actuarially sound; and
                    ``(C) require the payment of premiums and 
                administrative fees by a producer obtaining the 
                insurance.
            ``(3) Location.--The sesame insurance pilot program shall 
        be carried out only in the State of Texas.
            ``(4) Duration.--The Corporation shall commence the sesame 
        insurance pilot program as soon as practicable after the date 
        of the enactment of this subsection.
    ``(h) Grass Seed Insurance Pilot Program.--
            ``(1) In general.--In addition to any other authority of 
        the Corporation, the Corporation shall establish and carry out 
        a grass seed pilot program under which a producer of Kentucky 
        bluegrass or perennial rye grass under contract may elect to 
        obtain multiperil crop insurance, as determined by the 
        Corporation.
            ``(2) Terms and conditions.--The multiperil crop insurance 
        offered under the grass seed insurance pilot program shall--
                    ``(A) be offered through reinsurance arrangements 
                with private insurance companies;
                    ``(B) be actuarially sound; and
                    ``(C) require the payment of premiums and 
                administrative fees by a producer obtaining the 
                insurance.
            ``(3) Location.--The grass seed insurance pilot program 
        shall be carried out only in each of the States of Minnesota 
        and North Dakota.
            ``(4) Duration.--The Corporation shall commence the grass 
        seed insurance pilot program as soon as practicable after the 
        date of the enactment of this subsection.''.
    (b) Conforming Amendment.--Section 196(a)(2)(B) of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333(a)(2)(B)) 
is amended by adding ``camelina,'' after ``sea oats,''.

SEC. 12026. RISK MANAGEMENT EDUCATION FOR BEGINNING FARMERS OR 
              RANCHERS.

    Section 524(a) of the Federal Crop Insurance Act (7 U.S.C. 1524(a)) 
is amended--
            (1) in paragraph (1), by striking ``paragraph (4)'' and 
        inserting ``paragraph (5)'';
            (2) by redesignating paragraph (4) as paragraph (5); and
            (3) by inserting after paragraph (3) the following:
            ``(4) Requirements.--In carrying out the programs 
        established under paragraphs (2) and (3), the Secretary shall 
        place special emphasis on risk management strategies, 
        education, and outreach specifically targeted at--
                    ``(A) beginning farmers or ranchers;
                    ``(B) legal immigrant farmers or ranchers that are 
                attempting to become established producers in the 
                United States;
                    ``(C) socially disadvantaged farmers or ranchers;
                    ``(D) farmers or ranchers that--
                            ``(i) are preparing to retire; and
                            ``(ii) are using transition strategies to 
                        help new farmers or ranchers get started; and
                    ``(E) new or established farmers or ranchers that 
                are converting production and marketing systems to 
                pursue new markets.''.

SEC. 12027. COVERAGE FOR AQUACULTURE UNDER NONINSURED CROP ASSISTANCE 
              PROGRAM.

    Section 196(c)(2) of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7333(c)(2)) is amended--
            (1) by striking ``On making'' and inserting the following:
                    ``(A) In general.--On making''; and
            (2) by adding at the end the following:
                    ``(B) Aquaculture producers.--On making a 
                determination described in subsection (a)(3) for 
                aquaculture producers, the Secretary shall provide 
                assistance under this section to aquaculture producers 
                from all losses related to drought.''.

SEC. 12028. INCREASE IN SERVICE FEES FOR NONINSURED CROP ASSISTANCE 
              PROGRAM.

    Section 196(k)(1) of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7333(k)(1)) is amended--
            (1) in subparagraph (A), by striking ``$100'' and inserting 
        ``$250''; and
            (2) in subparagraph (B)--
                    (A) by striking ``$300'' and inserting ``$750''; 
                and
                    (B) by striking ``$900'' and inserting ``$1,875''.

SEC. 12029. DETERMINATION OF CERTAIN SWEET POTATO PRODUCTION.

    Section 9001(d) of the U.S. Troop Readiness, Veterans' Care, 
Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 
(Public Law 110-28; 121 Stat. 211) is amended--
            (1) by redesignating paragraph (8) as paragraph (9); and
            (2) by inserting after paragraph (7) the following:
            ``(8) Sweet potatoes.--
                    ``(A) Data.--In the case of sweet potatoes, any 
                data obtained under a pilot program carried out by the 
                Risk Management Agency shall not be considered for the 
                purpose of determining the quantity of production under 
                the crop disaster assistance program established under 
                this section.
                    ``(B) Extension of deadline.--If this paragraph is 
                not implemented before the sign-up deadline for the 
                crop disaster assistance program established under this 
                section, the Secretary shall extend the deadline for 
                producers of sweet potatoes to permit sign-up for the 
                program in accordance with this paragraph.''.

SEC. 12030. DECLINING YIELD REPORT.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary shall submit to the Committee on Agriculture of the House 
of Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate a report containing details about activities and 
administrative options of the Federal Crop Insurance Corporation and 
Risk Management Agency that address issues relating to--
            (1) declining yields on the actual production histories of 
        producers; and
            (2) declining and variable yields for perennial crops, 
        including pecans.

SEC. 12031. DEFINITION OF BASIC UNIT.

    The Secretary shall not modify the definition of ``basic unit'' in 
accordance with the proposed regulations entitled ``Common Crop 
Insurance Regulations'' (72 Fed. Reg. 28895; relating to common crop 
insurance regulations) or any successor regulation.

SEC. 12032. CROP INSURANCE MEDIATION.

    Section 275 of the Department of Agriculture Reorganization Act of 
1994 (7 U.S.C. 6995) is amended--
            (1) by striking ``If an officer'' and inserting the 
        following:
    ``(a) In General.--If an officer'';
            (2) by striking ``With respect to'' and inserting the 
        following:
    ``(b) Farm Service Agency.--With respect to'';
            (3) by striking ``If a mediation''; and inserting the 
        following:
    ``(c) Mediation.--If a mediation''; and
            (4) in subsection (c) (as so designated)--
                    (A) by striking ``participant shall be offered'' 
                and inserting ``participant shall--
            ``(1) be offered''; and
                    (B) by striking the period at the end and inserting 
                the following: ``; and
            ``(2) to the maximum extent practicable, be allowed to use 
        both informal agency review and mediation to resolve disputes 
        under that title.''.

SEC. 12033. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

    (a) In General.--The Federal Crop Insurance Act (7 U.S.C. 1501 et 
seq.) is amended by adding at the end the following:

      ``Subtitle B--Supplemental Agricultural Disaster Assistance

``SEC. 531. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

    ``(a) Definitions.--In this section:
            ``(1) Actual production history yield.--The term `actual 
        production history yield' means the weighted average of the 
        actual production history for each insurable commodity or 
        noninsurable commodity, as calculated under subtitle A or the 
        noninsured crop disaster assistance program, respectively.
            ``(2) Adjusted actual production history yield.--The term 
        `adjusted actual production history yield' means--
                    ``(A) in the case of an eligible producer on a farm 
                that has at least 4 years of actual production history 
                yields for an insurable commodity that are established 
                other than pursuant to section 508(g)(4)(B), the actual 
                production history for the eligible producer without 
                regard to any yields established under that section;
                    ``(B) in the case of an eligible producer on a farm 
                that has less than 4 years of actual production history 
                yields for an insurable commodity, of which 1 or more 
                were established pursuant to section 508(g)(4)(B), the 
                actual production history for the eligible producer as 
                calculated without including the lowest of the yields 
                established pursuant to section 508(g)(4)(B); and
                    ``(C) in all other cases, the actual production 
                history of the eligible producer on a farm.
            ``(3) Adjusted noninsured crop disaster assistance program 
        yield.--The term `adjusted noninsured crop disaster assistance 
        program yield' means--
                    ``(A) in the case of an eligible producer on a farm 
                that has at least 4 years of production history under 
                the noninsured crop disaster assistance program that 
                are not replacement yields, the noninsured crop 
                disaster assistance program yield without regard to any 
                replacement yields;
                    ``(B) in the case of an eligible producer on a farm 
                that less than 4 years of production history under the 
                noninsured crop disaster assistance program that are 
                not replacement yields, the noninsured crop disaster 
                assistance program yield as calculated without 
                including the lowest of the replacement yields; and
                    ``(C) in all other cases, the production history of 
                the eligible producer on the farm under the noninsured 
                crop disaster assistance program.
            ``(4) Counter-cyclical program payment yield.--The term 
        `counter-cyclical program payment yield' means the weighted 
        average payment yield established under section 1102 of the 
        Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7912), 
        section 1102 of the Food, Conservation, and Energy Act of 2008, 
        or a successor section.
            ``(5) Disaster county.--
                    ``(A) In general.--The term `disaster county' means 
                a county included in the geographic area covered by a 
                qualifying natural disaster declaration.
                    ``(B) Inclusion.--The term `disaster county' 
                includes--
                            ``(i) a county contiguous to a county 
                        described in subparagraph (A); and
                            ``(ii) any farm in which, during a calendar 
                        year, the total loss of production of the farm 
                        relating to weather is greater than 50 percent 
                        of the normal production of the farm, as 
                        determined by the Secretary.
            ``(6) Eligible producer on a farm.--
                    ``(A) In general.--The term `eligible producer on a 
                farm' means an individual or entity described in 
                subparagraph (B) that, as determined by the Secretary, 
                assumes the production and market risks associated with 
                the agricultural production of crops or livestock.
                    ``(B) Description.--An individual or entity 
                referred to in subparagraph (A) is--
                            ``(i) a citizen of the United States;
                            ``(ii) a resident alien;
                            ``(iii) a partnership of citizens of the 
                        United States; or
                            ``(iv) a corporation, limited liability 
                        corporation, or other farm organizational 
                        structure organized under State law.
            ``(7) Farm.--
                    ``(A) In general.--The term `farm' means, in 
                relation to an eligible producer on a farm, the sum of 
                all crop acreage in all counties that is planted or 
                intended to be planted for harvest by the eligible 
                producer.
                    ``(B) Aquaculture.--In the case of aquaculture, the 
                term `farm' means, in relation to an eligible producer 
                on a farm, all fish being produced in all counties that 
                are intended to be harvested for sale by the eligible 
                producer.
                    ``(C) Honey.--In the case of honey, the term `farm' 
                means, in relation to an eligible producer on a farm, 
                all bees and beehives in all counties that are intended 
                to be harvested for a honey crop by the eligible 
                producer.
            ``(8) Farm-raised fish.--The term `farm-raised fish' means 
        any aquatic species that is propagated and reared in a 
        controlled environment.
            ``(9) Insurable commodity.--The term `insurable commodity' 
        means an agricultural commodity (excluding livestock) for which 
        the producer on a farm is eligible to obtain a policy or plan 
        of insurance under subtitle A.
            ``(10) Livestock.--The term `livestock' includes--
                    ``(A) cattle (including dairy cattle);
                    ``(B) bison;
                    ``(C) poultry;
                    ``(D) sheep;
                    ``(E) swine;
                    ``(F) horses; and
                    ``(G) other livestock, as determined by the 
                Secretary.
            ``(11) Noninsurable commodity.--The term `noninsurable 
        commodity' means a crop for which the eligible producers on a 
        farm are eligible to obtain assistance under the noninsured 
        crop assistance program.
            ``(12) Noninsured crop assistance program.--The term 
        `noninsured crop assistance program' means the program carried 
        out under section 196 of the Federal Agriculture Improvement 
        and Reform Act of 1996 (7 U.S.C. 7333).
            ``(13) Qualifying natural disaster declaration.--The term 
        `qualifying natural disaster declaration' means a natural 
        disaster declared by the Secretary for production losses under 
        section 321(a) of the Consolidated Farm and Rural Development 
        Act (7 U.S.C. 1961(a)).
            ``(14) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
            ``(15) Socially disadvantaged farmer or rancher.--The term 
        `socially disadvantaged farmer or rancher' has the meaning 
        given the term in section 2501(e) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)).
            ``(16) State.--The term `State' means--
                    ``(A) a State;
                    ``(B) the District of Columbia;
                    ``(C) the Commonwealth of Puerto Rico; and
                    ``(D) any other territory or possession of the 
                United States.
            ``(17) Trust fund.--The term `Trust Fund' means the 
        Agricultural Disaster Relief Trust Fund established under 
        section 902 of the Trade Act of 1974.
            ``(18) United states.--The term `United States' when used 
        in a geographical sense, means all of the States.
    ``(b) Supplemental Revenue Assistance Payments.--
            ``(1) In general.--The Secretary shall use such sums as are 
        necessary from the Trust Fund to make crop disaster assistance 
        payments to eligible producers on farms in disaster counties 
        that have incurred crop production losses or crop quality 
        losses, or both, during the crop year.
            ``(2) Amount.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary shall provide crop disaster assistance 
                payments under this section to an eligible producer on 
                a farm in an amount equal to 60 percent of the 
                difference between--
                            ``(i) the disaster assistance program 
                        guarantee, as described in paragraph (3); and
                            ``(ii) the total farm revenue for a farm, 
                        as described in paragraph (4).
                    ``(B) Limitation.--The disaster assistance program 
                guarantee for a crop used to calculate the payments for 
                a farm under subparagraph (A)(i) may not be greater 
                than 90 percent of the sum of the expected revenue, as 
                described in paragraph (5) for each of the crops on a 
                farm, as determined by the Secretary.
            ``(3) Supplemental revenue assistance program guarantee.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, the supplemental assistance program 
                guarantee shall be the sum obtained by adding--
                            ``(i) for each insurable commodity on the 
                        farm, 115 percent of the product obtained by 
                        multiplying--
                                    ``(I) a payment rate for the 
                                commodity that is equal to the price 
                                election for the commodity elected by 
                                the eligible producer;
                                    ``(II) the payment acres for the 
                                commodity that is equal to the number 
                                of acres planted, or prevented from 
                                being planted, to the commodity;
                                    ``(III) the payment yield for the 
                                commodity that is equal to the 
                                percentage of the crop insurance yield 
                                elected by the producer of the higher 
                                of--
                                            ``(aa) the adjusted actual 
                                        production history yield; or
                                            ``(bb) the counter-cyclical 
                                        program payment yield for each 
                                        crop; and
                            ``(ii) for each noninsurable commodity on a 
                        farm, 120 percent of the product obtained by 
                        multiplying--
                                    ``(I) a payment rate for the 
                                commodity that is equal to 100 percent 
                                of the noninsured crop assistance 
                                program established price for the 
                                commodity;
                                    ``(II) the payment acres for the 
                                commodity that is equal to the number 
                                of acres planted, or prevented from 
                                being planted, to the commodity; and
                                    ``(III) the payment yield for the 
                                commodity that is equal to the higher 
                                of--
                                            ``(aa) the adjusted 
                                        noninsured crop assistance 
                                        program yield guarantee; or
                                            ``(bb) the counter-cyclical 
                                        program payment yield for each 
                                        crop.
                    ``(B) Adjustment insurance guarantee.--
                Notwithstanding subparagraph (A), in the case of an 
                insurable commodity for which a plan of insurance 
                provides for an adjustment in the guarantee, such as in 
                the case of prevented planting, the adjusted insurance 
                guarantee shall be the basis for determining the 
                disaster assistance program guarantee for the insurable 
                commodity.
                    ``(C) Adjusted assistance level.--Notwithstanding 
                subparagraph (A), in the case of a noninsurable 
                commodity for which the noninsured crop assistance 
                program provides for an adjustment in the level of 
                assistance, such as in the case of unharvested crops, 
                the adjusted assistance level shall be the basis for 
                determining the disaster assistance program guarantee 
                for the noninsurable commodity.
                    ``(D) Equitable treatment for non-yield based 
                policies.--The Secretary shall establish equitable 
                treatment for non-yield based policies and plans of 
                insurance, such as the Adjusted Gross Revenue Lite 
                insurance program.
            ``(4) Farm revenue.--
                    ``(A) In general.--For purposes of this subsection, 
                the total farm revenue for a farm, shall equal the sum 
                obtained by adding--
                            ``(i) the estimated actual value for each 
                        crop produced on a farm by using the product 
                        obtained by multiplying--
                                    ``(I) the actual crop acreage 
                                harvested by an eligible producer on a 
                                farm;
                                    ``(II) the estimated actual yield 
                                of the crop production; and
                                    ``(III) subject to subparagraphs 
                                (B) and (C), to the extent practicable, 
                                the national average market price 
                                received for the marketing year, as 
                                determined by the Secretary;
                            ``(ii) 15 percent of amount of any direct 
                        payments made to the producer under sections 
                        1103 and 1303 of the Food, Conservation, and 
                        Energy Act of 2008 or successor sections;
                            ``(iii) the total amount of any counter-
                        cyclical payments made to the producer under 
                        sections 1104 and 1304 of the Food, 
                        Conservation, and Energy Act of 2008 or 
                        successor sections or of any average crop 
                        revenue election payments made to the producer 
                        under section 1105 of that Act;
                            ``(iv) the total amount of any loan 
                        deficiency payments, marketing loan gains, and 
                        marketing certificate gains made to the 
                        producer under subtitles B and C of the Food, 
                        Conservation, and Energy Act of 2008 or 
                        successor subtitles;
                            ``(v) the amount of payments for prevented 
                        planting on a farm;
                            ``(vi) the amount of crop insurance 
                        indemnities received by an eligible producer on 
                        a farm for each crop on a farm;
                            ``(vii) the amount of payments an eligible 
                        producer on a farm received under the 
                        noninsured crop assistance program for each 
                        crop on a farm; and
                            ``(viii) the value of any other natural 
                        disaster assistance payments provided by the 
                        Federal Government to an eligible producer on a 
                        farm for each crop on a farm for the same loss 
                        for which the eligible producer is seeking 
                        assistance.
                    ``(B) Adjustment.--The Secretary shall adjust the 
                average market price received by the eligible producer 
                on a farm--
                            ``(i) to reflect the average quality 
                        discounts applied to the local or regional 
                        market price of a crop or mechanically 
                        harvested forage due to a reduction in the 
                        intrinsic characteristics of the production 
                        resulting from adverse weather, as determined 
                        annually by the State office of the Farm 
                        Service Agency; and
                            ``(ii) to account for a crop the value of 
                        which is reduced due to excess moisture 
                        resulting from a disaster-related condition.
                    ``(C) Maximum amount for certain crops.--With 
                respect to a crop for which an eligible producer on a 
                farm receives assistance under the noninsured crop 
                assistance program, the national average market price 
                received during the marketing year shall be an amount 
                not more than 100 percent of the price of the crop 
                established under the noninsured crop assistance 
                program.
            ``(5) Expected revenue.--The expected revenue for each crop 
        on a farm shall equal the sum obtained by adding--
                    ``(A) the product obtained by multiplying--
                            ``(i) the greatest of--
                                    ``(I) the adjusted actual 
                                production history yield of the 
                                eligible producer on a farm; and
                                    ``(II) the counter-cyclical program 
                                payment yield;
                            ``(ii) the acreage planted or prevented 
                        from being planted for each crop; and
                            ``(iii) 100 percent of the insurance price 
                        guarantee; and
                    ``(B) the product obtained by multiplying--
                            ``(i) 100 percent of the adjusted 
                        noninsured crop assistance program yield; and
                            ``(ii) 100 percent of the noninsured crop 
                        assistance program price for each of the crops 
                        on a farm.
    ``(c) Livestock Indemnity Payments.--
            ``(1) Payments.--The Secretary shall use such sums as are 
        necessary from the Trust Fund to make livestock indemnity 
        payments to eligible producers on farms that have incurred 
        livestock death losses in excess of the normal mortality due to 
        adverse weather, as determined by the Secretary, during the 
        calendar year, including losses due to hurricanes, floods, 
        blizzards, disease, wildfires, extreme heat, and extreme cold.
            ``(2) Payment rates.--Indemnity payments to an eligible 
        producer on a farm under paragraph (1) shall be made at a rate 
        of 75 percent of the market value of the applicable livestock 
        on the day before the date of death of the livestock, as 
        determined by the Secretary.
    ``(d) Livestock Forage Disaster Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Covered livestock.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the term `covered livestock' means 
                        livestock of an eligible livestock producer 
                        that, during the 60 days prior to the beginning 
                        date of a qualifying drought or fire condition, 
                        as determined by the Secretary, the eligible 
                        livestock producer--
                                    ``(I) owned;
                                    ``(II) leased;
                                    ``(III) purchased;
                                    ``(IV) entered into a contract to 
                                purchase;
                                    ``(V) is a contract grower; or
                                    ``(VI) sold or otherwise disposed 
                                of due to qualifying drought conditions 
                                during--
                                            ``(aa) the current 
                                        production year; or
                                            ``(bb) subject to paragraph 
                                        (3)(B)(ii), 1 or both of the 2 
                                        production years immediately 
                                        preceding the current 
                                        production year.
                            ``(ii) Exclusion.--The term `covered 
                        livestock' does not include livestock that were 
                        or would have been in a feedlot, on the 
                        beginning date of the qualifying drought or 
                        fire condition, as a part of the normal 
                        business operation of the eligible livestock 
                        producer, as determined by the Secretary.
                    ``(B) Drought monitor.--The term `drought monitor' 
                means a system for classifying drought severity 
                according to a range of abnormally dry to exceptional 
                drought, as defined by the Secretary.
                    ``(C) Eligible livestock producer.--
                            ``(i) In general.--The term `eligible 
                        livestock producer' means an eligible producer 
                        on a farm that--
                                    ``(I) is an owner, cash or share 
                                lessee, or contract grower of covered 
                                livestock that provides the pastureland 
                                or grazing land, including cash-leased 
                                pastureland or grazing land, for the 
                                livestock;
                                    ``(II) provides the pastureland or 
                                grazing land for covered livestock, 
                                including cash-leased pastureland or 
                                grazing land that is physically located 
                                in a county affected by drought;
                                    ``(III) certifies grazing loss; and
                                    ``(IV) meets all other eligibility 
                                requirements established under this 
                                subsection.
                            ``(ii) Exclusion.--The term `eligible 
                        livestock producer' does not include an owner, 
                        cash or share lessee, or contract grower of 
                        livestock that rents or leases pastureland or 
                        grazing land owned by another person on a rate-
                        of-gain basis.
                    ``(D) Normal carrying capacity.--The term `normal 
                carrying capacity', with respect to each type of 
                grazing land or pastureland in a county, means the 
                normal carrying capacity, as determined under paragraph 
                (3)(D)(i), that would be expected from the grazing land 
                or pastureland for livestock during the normal grazing 
                period, in the absence of a drought or fire that 
                diminishes the production of the grazing land or 
                pastureland.
                    ``(E) Normal grazing period.--The term `normal 
                grazing period', with respect to a county, means the 
                normal grazing period during the calendar year for the 
                county, as determined under paragraph (3)(D)(i).
            ``(2) Program.--The Secretary shall use such sums as are 
        necessary from the Trust Fund to provide compensation for 
        losses to eligible livestock producers due to grazing losses 
        for covered livestock due to--
                    ``(A) a drought condition, as described in 
                paragraph (3); or
                    ``(B) fire, as described in paragraph (4).
            ``(3) Assistance for losses due to drought conditions.--
                    ``(A) Eligible losses.--
                            ``(i) In general.--An eligible livestock 
                        producer may receive assistance under this 
                        subsection only for grazing losses for covered 
                        livestock that occur on land that--
                                    ``(I) is native or improved 
                                pastureland with permanent vegetative 
                                cover; or
                                    ``(II) is planted to a crop planted 
                                specifically for the purpose of 
                                providing grazing for covered 
                                livestock.
                            ``(ii) Exclusions.--An eligible livestock 
                        producer may not receive assistance under this 
                        subsection for grazing losses that occur on 
                        land used for haying or grazing under the 
                        conservation reserve program established under 
                        subchapter B of chapter 1 of subtitle D of 
                        title XII of the Food Security Act of 1985 (16 
                        U.S.C. 3831 et seq.).
                    ``(B) Monthly payment rate.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the payment rate for assistance 
                        under this paragraph for 1 month shall, in the 
                        case of drought, be equal to 60 percent of the 
                        lesser of--
                                    ``(I) the monthly feed cost for all 
                                covered livestock owned or leased by 
                                the eligible livestock producer, as 
                                determined under subparagraph (C); or
                                    ``(II) the monthly feed cost 
                                calculated by using the normal carrying 
                                capacity of the eligible grazing land 
                                of the eligible livestock producer.
                            ``(ii) Partial compensation.--In the case 
                        of an eligible livestock producer that sold or 
                        otherwise disposed of covered livestock due to 
                        drought conditions in 1 or both of the 2 
                        production years immediately preceding the 
                        current production year, as determined by the 
                        Secretary, the payment rate shall be 80 percent 
                        of the payment rate otherwise calculated in 
                        accordance with clause (i).
                    ``(C) Monthly feed cost.--
                            ``(i) In general.--The monthly feed cost 
                        shall equal the product obtained by 
                        multiplying--
                                    ``(I) 30 days;
                                    ``(II) a payment quantity that is 
                                equal to the feed grain equivalent, as 
                                determined under clause (ii); and
                                    ``(III) a payment rate that is 
                                equal to the corn price per pound, as 
                                determined under clause (iii).
                            ``(ii) Feed grain equivalent.--For purposes 
                        of clause (i)(I), the feed grain equivalent 
                        shall equal--
                                    ``(I) in the case of an adult beef 
                                cow, 15.7 pounds of corn per day; or
                                    ``(II) in the case of any other 
                                type of weight of livestock, an amount 
                                determined by the Secretary that 
                                represents the average number of pounds 
                                of corn per day necessary to feed the 
                                livestock.
                            ``(iii) Corn price per pound.--For purposes 
                        of clause (i)(II), the corn price per pound 
                        shall equal the quotient obtained by dividing--
                                    ``(I) the higher of--
                                            ``(aa) the national average 
                                        corn price per bushel for the 
                                        12-month period immediately 
                                        preceding March 1 of the year 
                                        for which the disaster 
                                        assistance is calculated; or
                                            ``(bb) the national average 
                                        corn price per bushel for the 
                                        24-month period immediately 
                                        preceding that March 1; by
                                    ``(II) 56.
                    ``(D) Normal grazing period and drought monitor 
                intensity.--
                            ``(i) FSA county committee 
                        determinations.--
                                    ``(I) In general.--The Secretary 
                                shall determine the normal carrying 
                                capacity and normal grazing period for 
                                each type of grazing land or 
                                pastureland in the county served by the 
                                applicable committee.
                                    ``(II) Changes.--No change to the 
                                normal carrying capacity or normal 
                                grazing period established for a county 
                                under subclause (I) shall be made 
                                unless the change is requested by the 
                                appropriate State and county Farm 
                                Service Agency committees.
                            ``(ii) Drought intensity.--
                                    ``(I) D2.--An eligible livestock 
                                producer that owns or leases grazing 
                                land or pastureland that is physically 
                                located in a county that is rated by 
                                the U.S. Drought Monitor as having a D2 
                                (severe drought) intensity in any area 
                                of the county for at least 8 
                                consecutive weeks during the normal 
                                grazing period for the county, as 
                                determined by the Secretary, shall be 
                                eligible to receive assistance under 
                                this paragraph in an amount equal to 1 
                                monthly payment using the monthly 
                                payment rate determined under 
                                subparagraph (B).
                                    ``(II) D3.--An eligible livestock 
                                producer that owns or leases grazing 
                                land or pastureland that is physically 
                                located in a county that is rated by 
                                the U.S. Drought Monitor as having at 
                                least a D3 (extreme drought) intensity 
                                in any area of the county at any time 
                                during the normal grazing period for 
                                the county, as determined by the 
                                Secretary, shall be eligible to receive 
                                assistance under this paragraph--
                                            ``(aa) in an amount equal 
                                        to 2 monthly payments using the 
                                        monthly payment rate determined 
                                        under subparagraph (B); or
                                            ``(bb) if the county is 
                                        rated as having a D3 (extreme 
                                        drought) intensity in any area 
                                        of the county for at least 4 
                                        weeks during the normal grazing 
                                        period for the county, or is 
                                        rated as having a D4 
                                        (exceptional drought) intensity 
                                        in any area of the county at 
                                        any time during the normal 
                                        grazing period, in an amount 
                                        equal to 3 monthly payments 
                                        using the monthly payment rate 
                                        determined under subparagraph 
                                        (B).
            ``(4) Assistance for losses due to fire on public managed 
        land.--
                    ``(A) In general.--An eligible livestock producer 
                may receive assistance under this paragraph only if--
                            ``(i) the grazing losses occur on rangeland 
                        that is managed by a Federal agency; and
                            ``(ii) the eligible livestock producer is 
                        prohibited by the Federal agency from grazing 
                        the normal permitted livestock on the managed 
                        rangeland due to a fire.
                    ``(B) Payment rate.--The payment rate for 
                assistance under this paragraph shall be equal to 50 
                percent of the monthly feed cost for the total number 
                of livestock covered by the Federal lease of the 
                eligible livestock producer, as determined under 
                paragraph (3)(C).
                    ``(C) Payment duration.--
                            ``(i) In general.--Subject to clause (ii), 
                        an eligible livestock producer shall be 
                        eligible to receive assistance under this 
                        paragraph for the period--
                                    ``(I) beginning on the date on 
                                which the Federal agency excludes the 
                                eligible livestock producer from using 
                                the managed rangeland for grazing; and
                                    ``(II) ending on the last day of 
                                the Federal lease of the eligible 
                                livestock producer.
                            ``(ii) Limitation.--An eligible livestock 
                        producer may only receive assistance under this 
                        paragraph for losses that occur on not more 
                        than 180 days per year.
            ``(5) Minimum risk management purchase requirements.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, a livestock producer shall only be 
                eligible for assistance under this subsection if the 
                livestock producer--
                            ``(i) obtained a policy or plan of 
                        insurance under subtitle A for the grazing land 
                        incurring the losses for which assistance is 
                        being requested; or
                            ``(ii) filed the required paperwork, and 
                        paid the administrative fee by the applicable 
                        State filing deadline, for the noninsured crop 
                        assistance program for the grazing land 
                        incurring the losses for which assistance is 
                        being requested.
                    ``(B) Waiver for socially disadvantaged, limited 
                resource, or beginning farmer or rancher.--In the case 
                of an eligible livestock producer that is a socially 
                disadvantaged farmer or rancher or limited resource or 
                beginning farmer or rancher, as determined by the 
                Secretary, the Secretary may--
                            ``(i) waive subparagraph (A); and
                            ``(ii) provide disaster assistance under 
                        this section at a level that the Secretary 
                        determines to be equitable and appropriate.
                    ``(C) Waiver for 2008 calendar year.--In the case 
                of an eligible livestock producer that suffered losses 
                on grazing land during the 2008 calendar year but does 
                not meet the requirements of subparagraph (A), the 
                Secretary shall waive subparagraph (A) if the eligible 
                livestock producer pays a fee in an amount equal to the 
                applicable noninsured crop assistance program fee or 
                catastrophic risk protection plan fee required under 
                subparagraph (A) to the Secretary not later than 90 
                days after the date of enactment of this subtitle.
                    ``(D) Equitable relief.--
                            ``(i) In general.--The Secretary may 
                        provide equitable relief to an eligible 
                        livestock producer that is otherwise ineligible 
                        or unintentionally fails to meet the 
                        requirements of subparagraph (A) for the 
                        grazing land incurring the loss on a case-by-
                        case basis, as determined by the Secretary.
                            ``(ii) 2008 calendar year.--In the case of 
                        an eligible livestock producer that suffered 
                        losses on grazing land during the 2008 calendar 
                        year, the Secretary shall take special 
                        consideration to provide equitable relief in 
                        cases in which the eligible livestock producer 
                        failed to meet the requirements of subparagraph 
                        (A) due to the enactment of this subtitle after 
                        the closing date of sales periods for crop 
                        insurance under subtitle A and the noninsured 
                        crop assistance program.
            ``(6) No duplicative payments.--
                    ``(A) In general.--An eligible livestock producer 
                may elect to receive assistance for grazing or pasture 
                feed losses due to drought conditions under paragraph 
                (3) or fire under paragraph (4), but not both for the 
                same loss, as determined by the Secretary.
                    ``(B) Relationship to supplemental revenue 
                assistance.--An eligible livestock producer that 
                receives assistance under this subsection may not also 
                receive assistance for losses to crops on the same land 
                with the same intended use under subsection (b).
    ``(e) Emergency Assistance for Livestock, Honey Bees, and Farm-
Raised Fish.--
            ``(1) In general.--The Secretary shall use up to 
        $50,000,000 per year from the Trust Fund to provide emergency 
        relief to eligible producers of livestock, honey bees, and 
        farm-raised fish to aid in the reduction of losses due to 
        disease, adverse weather, or other conditions, such as 
        blizzards and wildfires, as determined by the Secretary, that 
        are not covered under subsection (b), (c), or (d).
            ``(2) Use of funds.--Funds made available under this 
        subsection shall be used to reduce losses caused by feed or 
        water shortages, disease, or other factors as determined by the 
        Secretary.
            ``(3) Availability of funds.--Any funds made available 
        under this subsection shall remain available until expended.
    ``(f) Tree Assistance Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible orchardist.--The term `eligible 
                orchardist' means a person that produces annual crops 
                from trees for commercial purposes.
                    ``(B) Natural disaster.--The term `natural 
                disaster' means plant disease, insect infestation, 
                drought, fire, freeze, flood, earthquake, lightning, or 
                other occurrence, as determined by the Secretary.
                    ``(C) Nursery tree grower.--The term `nursery tree 
                grower' means a person who produces nursery, 
                ornamental, fruit, nut, or Christmas trees for 
                commercial sale, as determined by the Secretary.
                    ``(D) Tree.--The term `tree' includes a tree, bush, 
                and vine.
            ``(2) Eligibility.--
                    ``(A) Loss.--Subject to subparagraph (B), the 
                Secretary shall provide assistance--
                            ``(i) under paragraph (3) to eligible 
                        orchardists and nursery tree growers that 
                        planted trees for commercial purposes but lost 
                        the trees as a result of a natural disaster, as 
                        determined by the Secretary; and
                            ``(ii) under paragraph (3)(B) to eligible 
                        orchardists and nursery tree growers that have 
                        a production history for commercial purposes on 
                        planted or existing trees but lost the trees as 
                        a result of a natural disaster, as determined 
                        by the Secretary.
                    ``(B) Limitation.--An eligible orchardist or 
                nursery tree grower shall qualify for assistance under 
                subparagraph (A) only if the tree mortality of the 
                eligible orchardist or nursery tree grower, as a result 
                of damaging weather or related condition, exceeds 15 
                percent (adjusted for normal mortality).
            ``(3) Assistance.--Subject to paragraph (4), the assistance 
        provided by the Secretary to eligible orchardists and nursery 
        tree growers for losses described in paragraph (2) shall 
        consist of--
                    ``(A)(i) reimbursement of 70 percent of the cost of 
                replanting trees lost due to a natural disaster, as 
                determined by the Secretary, in excess of 15 percent 
                mortality (adjusted for normal mortality); or
                    ``(ii) at the option of the Secretary, sufficient 
                seedlings to reestablish a stand; and
                    ``(B) reimbursement of 50 percent of the cost of 
                pruning, removal, and other costs incurred by an 
                eligible orchardist or nursery tree grower to salvage 
                existing trees or, in the case of tree mortality, to 
                prepare the land to replant trees as a result of damage 
                or tree mortality due to a natural disaster, as 
                determined by the Secretary, in excess of 15 percent 
                damage or mortality (adjusted for normal tree damage 
                and mortality).
            ``(4) Limitations on assistance.--
                    ``(A) Definitions of legal entity and person.--In 
                this paragraph, the terms `legal entity' and `person' 
                have the meaning given those terms in section 1001(a) 
                of the Food Security Act of 1985 (7 U.S.C. 1308(a) (as 
                amended by section 1603 of the Food, Conservation, and 
                Energy Act of 2008).
                    ``(B) Amount.--The total amount of payments 
                received, directly or indirectly, by a person or legal 
                entity (excluding a joint venture or general 
                partnership) under this subsection may not exceed 
                $100,000 for any crop year, or an equivalent value in 
                tree seedlings.
                    ``(C) Acres.--The total quantity of acres planted 
                to trees or tree seedlings for which a person or legal 
                entity shall be entitled to receive payments under this 
                subsection may not exceed 500 acres.
    ``(g) Risk Management Purchase Requirement.--
            ``(1) In general.--Except as otherwise provided in this 
        section, the eligible producers on a farm shall not be eligible 
        for assistance under this section (other than subsection (c)) 
        if the eligible producers on the farm--
                    ``(A) in the case of each insurable commodity of 
                the eligible producers on the farm, did not obtain a 
                policy or plan of insurance under subtitle A (excluding 
                a crop insurance pilot program under that subtitle); or
                    ``(B) in the case of each noninsurable commodity of 
                the eligible producers on the farm, did not file the 
                required paperwork, and pay the administrative fee by 
                the applicable State filing deadline, for the 
                noninsured crop assistance program.
            ``(2) Minimum.--To be considered to have obtained insurance 
        under paragraph (1)(A), an eligible producer on a farm shall 
        have obtained a policy or plan of insurance with not less than 
        50 percent yield coverage at 55 percent of the insurable price 
        for each crop grazed, planted, or intended to be planted for 
        harvest on a whole farm.
            ``(3) Waiver for socially disadvantaged, limited resource, 
        or beginning farmer or rancher.--With respect to eligible 
        producers that are socially disadvantaged farmers or ranchers 
        or limited resource or beginning farmers or ranchers, as 
        determined by the Secretary, the Secretary may--
                    ``(A) waive paragraph (1); and
                    ``(B) provide disaster assistance under this 
                section at a level that the Secretary determines to be 
                equitable and appropriate.
            ``(4) Waiver for 2008 crop year.--In the case of an 
        eligible producer that suffered losses in an insurable 
        commodity or noninsurable commodity during the 2008 crop year 
        but does not meet the requirements of paragraph (1), the 
        Secretary shall waive paragraph (1) if the eligible producer 
        pays a fee in an amount equal to the applicable noninsured crop 
        assistance program fee or catastrophic risk protection plan fee 
        required under paragraph (1) to the Secretary not later than 90 
        days after the date of enactment of this subtitle.
            ``(5) Equitable relief.--
                    ``(A) In general.--The Secretary may provide 
                equitable relief to eligible producers on a farm that 
                are otherwise ineligible or unintentionally fail to 
                meet the requirements of paragraph (1) for 1 or more 
                crops on a farm on a case-by-case basis, as determined 
                by the Secretary.
                    ``(B) 2008 crop year.--In the case of eligible 
                producers on a farm that suffered losses in an 
                insurable commodity or noninsurable commodity during 
                the 2008 crop year, the Secretary shall take special 
                consideration to provide equitable relief in cases in 
                which the eligible producers failed to meet the 
                requirements of paragraph (1) due to the enactment of 
                this subtitle after the closing date of sales periods 
                for crop insurance under subtitle A and the noninsured 
                crop assistance program.
    ``(h) Payment Limitations.--
            ``(1) Definitions of legal entity and person.--In this 
        subsection, the terms `legal entity' and `person' have the 
        meaning given those terms in section 1001(a) of the Food 
        Security Act of 1985 (7 U.S.C. 1308(a) (as amended by section 
        1603 of the Food, Conservation, and Energy Act of 2008).
            ``(2) Amount.--The total amount of disaster assistance 
        payments received, directly or indirectly, by a person or legal 
        entity (excluding a joint venture or general partnership) under 
        this section (excluding payments received under subsection (f)) 
        may not exceed $100,000 for any crop year.
            ``(3) AGI limitation.--Section 1001D of the Food Security 
        Act of 1985 (7 U.S.C. 1308-3a) or any successor provision shall 
        apply with respect to assistance provided under this section.
            ``(4) Direct attribution.--Subsections (e) and (f) of 
        section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) 
        or any successor provisions relating to direct attribution 
        shall apply with respect to assistance provided under this 
        section.
    ``(i) Period of Effectiveness.--This section shall be effective 
only for losses that are incurred as the result of a disaster, adverse 
weather, or other environmental condition that occurs on or before 
September 30, 2011, as determined by the Secretary.
    ``(j) No Duplicative Payments.--In implementing any other program 
which makes disaster assistance payments (except for indemnities made 
under subtitle A and section 196 of the Federal Agriculture Improvement 
and Reform Act of 1996), the Secretary shall prevent duplicative 
payments with respect to the same loss for which a person receives a 
payment under subsections (b), (c), (d), (e), or (f).
    ``(k) Application.--
            ``(1) In general.--Subject to paragraph (2) and 
        notwithstanding any provision of subtitle A, subtitle A shall 
        not apply to this subtitle.
            ``(2) Cross references.--Paragraph (1) shall not apply to a 
        specific reference in this subtitle to a provision of subtitle 
        A.''.
    (b) Transition.--For purposes of the 2008 crop year, the Secretary 
shall carry out subsections (f)(4) and (h) of section 531 of the 
Federal Crop Insurance Act (as added by subsection (a)) in accordance 
with the terms and conditions of sections 1001 through 1001D of the 
Food Security Act of 1985 (16 U.S.C. 1308 et seq.), as in effect on 
September 30, 2007.
    (c) Conforming Amendments.--
            (1) Section 501 of the Federal Crop Insurance Act (7 U.S.C. 
        1501) is amended by striking the section heading and enumerator 
        and inserting the following:

                ``Subtitle A--Federal Crop Insurance Act

``SEC. 501. SHORT TITLE AND APPLICATION OF OTHER PROVISIONS.''.

            (2) Subtitle A of the Federal Crop Insurance Act (as 
        designated under paragraph (1)) is amended--
                    (A) by striking ``This title'' each place it 
                appears and inserting ``This subtitle''; and
                    (B) by striking ``this title'' each place it 
                appears and inserting ``this subtitle''.

SEC. 12034. FISHERIES DISASTER ASSISTANCE.

    Of the funds of the Commodity Credit Corporation, the Secretary of 
Agriculture shall transfer to the Secretary of Commerce $170,000,000 
for fiscal year 2008 for the National Marine Fisheries Service to 
distribute to commercial and recreational members of the fishing 
communities affected by the salmon fishery failure in the States of 
California, Oregon, and Washington designated under section 312(a) of 
the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 
1861a(a)) on May 1, 2008, in accordance with that section.

            Subtitle B--Small Business Disaster Loan Program

SEC. 12051. SHORT TITLE.

    This subtitle may be cited as the ``Small Business Disaster 
Response and Loan Improvements Act of 2008''.

SEC. 12052. DEFINITIONS.

    In this subtitle--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof, respectively;
            (2) the term ``disaster area'' means an area affected by a 
        natural or other disaster, as determined for purposes of 
        paragraph (1) or (2) of section 7(b) of the Small Business Act 
        (15 U.S.C. 636(b)), during the period of such declaration;
            (3) the term ``disaster loan program of the 
        Administration'' means assistance under section 7(b) of the 
        Small Business Act (15 U.S.C. 636(b)), as amended by this Act;
            (4) the term ``disaster update period'' means the period 
        beginning on the date on which the President declares a major 
        disaster (including any major disaster relating to which the 
        Administrator declares eligibility for additional disaster 
        assistance under paragraph (9) of section 7(b) of the Small 
        Business Act (15 U.S.C. 636(b)), as added by this Act) and 
        ending on the date on which such declaration terminates;
            (5) the term ``major disaster'' has the meaning given that 
        term in section 102 of the Robert T. Stafford Disaster Relief 
        and Emergency Assistance Act (42 U.S.C. 5122);
            (6) the term ``small business concern'' has the meaning 
        given that term under section 3 of the Small Business Act (15 
        U.S.C. 632); and
            (7) the term ``State'' means any State of the United 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Northern Mariana Islands, the Virgin Islands, Guam, 
        American Samoa, and any territory or possession of the United 
        States.

                 PART I--DISASTER PLANNING AND RESPONSE

SEC. 12061. ECONOMIC INJURY DISASTER LOANS TO NONPROFITS.

    (a) In General.--Section 7(b)(2) of the Small Business Act (15 
U.S.C. 636(b)(2)) is amended--
            (1) in the matter preceding subparagraph (A)--
                    (A) by inserting after ``small business concern'' 
                the following: ``, private nonprofit organization,''; 
                and
                    (B) by inserting after ``the concern'' the 
                following: ``, the organization,''; and
            (2) in subparagraph (D) by inserting after ``small business 
        concerns'' the following: ``, private nonprofit 
        organizations,''.
    (b) Conforming Amendment.--Section 7(c)(5)(C) of the Small Business 
Act (15 U.S.C. 636(c)(5)(C)) is amended by inserting after ``business'' 
the following: ``, private nonprofit organization,''.

SEC. 12062. COORDINATION OF DISASTER ASSISTANCE PROGRAMS WITH FEMA.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 37 as section 44; and
            (2) by inserting after section 36 the following:

``SEC. 37. COORDINATION OF DISASTER ASSISTANCE PROGRAMS WITH FEMA.

    ``(a) Coordination Required.--The Administrator shall ensure that 
the disaster assistance programs of the Administration are coordinated, 
to the maximum extent practicable, with the disaster assistance 
programs of the Federal Emergency Management Agency.
    ``(b) Regulations Required.--The Administrator, in consultation 
with the Administrator of the Federal Emergency Management Agency, 
shall establish regulations to ensure that each application for 
disaster assistance is submitted as quickly as practicable to the 
Administration or directed to the appropriate agency under the 
circumstances.
    ``(c) Completion; Revision.--The initial regulations shall be 
completed not later than 270 days after the date of the enactment of 
the Small Business Disaster Response and Loan Improvements Act of 2008. 
Thereafter, the regulations shall be revised on an annual basis.
    ``(d) Report.--The Administrator shall include a report on the 
regulations whenever the Administration submits the report required by 
section 43.''.

SEC. 12063. PUBLIC AWARENESS OF DISASTER DECLARATION AND APPLICATION 
              PERIODS.

    (a) In General.--Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)) is amended by inserting immediately after paragraph (3), the 
following:
            ``(4) Coordination with fema.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, for any disaster declared under this 
                subsection or major disaster (including any major 
                disaster relating to which the Administrator declares 
                eligibility for additional disaster assistance under 
                paragraph (9)), the Administrator, in consultation with 
                the Administrator of the Federal Emergency Management 
                Agency, shall ensure, to the maximum extent 
                practicable, that all application periods for disaster 
                relief under this Act correspond with application 
                deadlines established under the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act (42 U.S.C. 
                5121 et seq.), or as extended by the President.
                    ``(B) Deadlines.--Notwithstanding any other 
                provision of law, not later than 10 days before the 
                closing date of an application period for a major 
                disaster (including any major disaster relating to 
                which the Administrator declares eligibility for 
                additional disaster assistance under paragraph (9)), 
                the Administrator, in consultation with the 
                Administrator of the Federal Emergency Management 
                Agency, shall submit to the Committee on Small Business 
                and Entrepreneurship of the Senate and the Committee on 
                Small Business of the House of Representatives a report 
                that includes--
                            ``(i) the deadline for submitting 
                        applications for assistance under this Act 
                        relating to that major disaster;
                            ``(ii) information regarding the number of 
                        loan applications and disbursements processed 
                        by the Administrator relating to that major 
                        disaster for each day during the period 
                        beginning on the date on which that major 
                        disaster was declared and ending on the date of 
                        that report; and
                            ``(iii) an estimate of the number of 
                        potential applicants that have not submitted an 
                        application relating to that major disaster.
            ``(5) Public awareness of disasters.--If a disaster is 
        declared under this subsection or the Administrator declares 
        eligibility for additional disaster assistance under paragraph 
        (9), the Administrator shall make every effort to communicate 
        through radio, television, print, and web-based outlets, all 
        relevant information needed by disaster loan applicants, 
        including--
                    ``(A) the date of such declaration;
                    ``(B) cities and towns within the area of such 
                declaration;
                    ``(C) loan application deadlines related to such 
                disaster;
                    ``(D) all relevant contact information for victim 
                services available through the Administration 
                (including links to small business development center 
                websites);
                    ``(E) links to relevant Federal and State disaster 
                assistance websites, including links to websites 
                providing information regarding assistance available 
                from the Federal Emergency Management Agency;
                    ``(F) information on eligibility criteria for 
                Administration loan programs, including where such 
                applications can be found; and
                    ``(G) application materials that clearly state the 
                function of the Administration as the Federal source of 
                disaster loans for homeowners and renters.''.
    (b) Marketing and Outreach.--Not later than 90 days after the date 
of enactment of this Act, the Administrator shall create a marketing 
and outreach plan that--
            (1) encourages a proactive approach to the disaster relief 
        efforts of the Administration;
            (2) makes clear the services provided by the 
        Administration, including contact information, application 
        information, and timelines for submitting applications, the 
        review of applications, and the disbursement of funds;
            (3) describes the different disaster loan programs of the 
        Administration, including how they are made available and the 
        eligibility requirements for each loan program;
            (4) provides for regional marketing, focusing on disasters 
        occurring in each region before the date of enactment of this 
        Act, and likely scenarios for disasters in each such region; 
        and
            (5) ensures that the marketing plan is made available at 
        small business development centers and on the website of the 
        Administration.
    (c) Technical and Conforming Amendments.--
            (1) In general.--Section 3 of the Small Business Act (15 
        U.S.C. 632) is amended by adding at the end the following:
    ``(s) Major Disaster.--In this Act, the term `major disaster' has 
the meaning given that term in section 102 of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122).''.
            (2) Technical correction.--Section 7(b)(2) of the Small 
        Business Act (15 U.S.C. 636(b)(2)) is amended by striking 
        ``Disaster Relief and Emergency Assistance Act'' and inserting 
        ``Robert T. Stafford Disaster Relief and Emergency Assistance 
        Act (42 U.S.C. 5121 et seq.)''.

SEC. 12064. CONSISTENCY BETWEEN ADMINISTRATION REGULATIONS AND STANDARD 
              OPERATING PROCEDURES.

    (a) In General.--The Administrator shall, promptly following the 
date of enactment of this Act, conduct a study of whether the standard 
operating procedures of the Administration for loans offered under 
section 7(b) of the Small Business Act (15 U.S.C. 636(b)) are 
consistent with the regulations of the Administration for administering 
the disaster loan program.
    (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Administrator shall submit to Congress a report 
containing all findings and recommendations of the study conducted 
under subsection (a).

SEC. 12065. INCREASING COLLATERAL REQUIREMENTS.

    Section 7(c)(6) of the Small Business Act (15 U.S.C. 636(c)(6)) is 
amended by striking ``$10,000 or less'' and inserting ``$14,000 or less 
(or such higher amount as the Administrator determines appropriate in 
the event of a major disaster)''.

SEC. 12066. PROCESSING DISASTER LOANS.

    (a) Authority for Qualified Private Contractors to Process Disaster 
Loans.--Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is 
amended by inserting immediately after paragraph (5), as added by this 
Act, the following:
            ``(6) Authority for qualified private contractors.--
                    ``(A) Disaster loan processing.--The Administrator 
                may enter into an agreement with a qualified private 
                contractor, as determined by the Administrator, to 
                process loans under this subsection in the event of a 
                major disaster (including any major disaster relating 
                to which the Administrator declares eligibility for 
                additional disaster assistance under paragraph (9)), 
                under which the Administrator shall pay the contractor 
                a fee for each loan processed.
                    ``(B) Loan loss verification services.--The 
                Administrator may enter into an agreement with a 
                qualified lender or loss verification professional, as 
                determined by the Administrator, to verify losses for 
                loans under this subsection in the event of a major 
                disaster (including any major disaster relating to 
                which the Administrator declares eligibility for 
                additional disaster assistance under paragraph (9)), 
                under which the Administrator shall pay the lender or 
                verification professional a fee for each loan for which 
                such lender or verification professional verifies 
                losses.''.
    (b) Coordination of Efforts Between the Administrator and the 
Internal Revenue Service to Expedite Loan Processing.--The 
Administrator and the Commissioner of Internal Revenue shall, to the 
maximum extent practicable, ensure that all relevant and allowable tax 
records for loan approval are shared with loan processors in an 
expedited manner, upon request by the Administrator.

SEC. 12067. INFORMATION TRACKING AND FOLLOW-UP SYSTEM.

    The Small Business Act is amended by inserting after section 37, as 
added by this Act, the following:

``SEC. 38. INFORMATION TRACKING AND FOLLOW-UP SYSTEM FOR DISASTER 
              ASSISTANCE.

    ``(a) System Required.--The Administrator shall develop, implement, 
or maintain a centralized information system to track communications 
between personnel of the Administration and applicants for disaster 
assistance. The system shall ensure that whenever an applicant for 
disaster assistance communicates with such personnel on a matter 
relating to the application, the following information is recorded:
            ``(1) The method of communication.
            ``(2) The date of communication.
            ``(3) The identity of the personnel.
            ``(4) A summary of the subject matter of the communication.
    ``(b) Follow-up Required.--The Administrator shall ensure that an 
applicant for disaster assistance receives, by telephone, mail, or 
electronic mail, follow-up communications from the Administration at 
all critical stages of the application process, including the 
following:
            ``(1) When the Administration determines that additional 
        information or documentation is required to process the 
        application.
            ``(2) When the Administration determines whether to approve 
        or deny the loan.
            ``(3) When the primary contact person managing the loan 
        application has changed.''.

SEC. 12068. INCREASED DEFERMENT PERIOD.

    (a) In General.--Section 7 of the Small Business Act (15 U.S.C. 
636) is amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
            (2) by inserting after subsection (e), as so redesignated, 
        the following:
    ``(f) Additional Requirements for 7(b) Loans.--
            ``(1) Increased deferment authorized.--
                    ``(A) In general.--In making loans under subsection 
                (b), the Administrator may provide, to the person 
                receiving the loan, an option to defer repayment on the 
                loan.
                    ``(B) Period.--The period of a deferment under 
                subparagraph (A) may not exceed 4 years.''.
    (b) Technical and Conforming Amendments.--The Small Business Act 
(15 U.S.C. 631 et seq.) is amended--
            (1) in section 4(c)--
                    (A) in paragraph (1), by striking ``7(c)(2)'' and 
                inserting ``7(d)(2)''; and
                    (B) in paragraph (2)--
                            (i) by striking ``7(c)(2)'' and inserting 
                        ``7(d)(2)''; and
                            (ii) by striking ``7(e),''; and
            (2) in section 7(b), in the undesignated matter following 
        paragraph (3)--
                    (A) by striking ``That the provisions of paragraph 
                (1) of subsection (c)'' and inserting ``That the 
                provisions of paragraph (1) of subsection (d)''; and
                    (B) by striking ``Notwithstanding the provisions of 
                any other law the interest rate on the Administration's 
                share of any loan made under subsection (b) except as 
                provided in subsection (c),'' and inserting 
                ``Notwithstanding any other provision of law, and 
                except as provided in subsection (d), the interest rate 
                on the Administration's share of any loan made under 
                subsection (b)''.

SEC. 12069. DISASTER PROCESSING REDUNDANCY.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended by 
inserting after section 38, as added by this Act, the following:

``SEC. 39. DISASTER PROCESSING REDUNDANCY.

    ``(a) In General.--The Administrator shall ensure that the 
Administration has in place a facility for disaster loan processing 
that, whenever the Administration's primary facility for disaster loan 
processing becomes unavailable, is able to take over all disaster loan 
processing from that primary facility within 2 days.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this 
section.''.

SEC. 12070. NET EARNINGS CLAUSES PROHIBITED.

    Section 7 of the Small Business Act (15 U.S.C. 636) is amended by 
inserting after subsection (f), as added by this Act, the following:
    ``(g) Net Earnings Clauses Prohibited for 7(b) Loans.--In making 
loans under subsection (b), the Administrator shall not require the 
borrower to pay any non-amortized amount for the first five years after 
repayment begins.''.

SEC. 12071. ECONOMIC INJURY DISASTER LOANS IN CASES OF ICE STORMS AND 
              BLIZZARDS.

    Section 3(k)(2) of the Small Business Act (15 U.S.C. 632(k)(2)) is 
amended--
            (1) in subparagraph (A) by striking ``and'';
            (2) in subparagraph (B) by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(C) ice storms and blizzards.''.

SEC. 12072. DEVELOPMENT AND IMPLEMENTATION OF MAJOR DISASTER RESPONSE 
              PLAN.

    (a) In General.--Not later than 3 months after the date of 
enactment of this Act, the Administrator shall--
            (1) by rule, amend the 2006 Atlantic hurricane season 
        disaster response plan of the Administration (in this section 
        referred to as the ``disaster response plan'') to apply to 
        major disasters; and
            (2) submit a report to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives detailing the 
        amendments to the disaster response plan.
    (b) Contents.--The report required under subsection (a)(2) shall 
include--
            (1) any updates or modifications made to the disaster 
        response plan since the report regarding the disaster response 
        plan submitted to Congress on July 14, 2006;
            (2) a description of how the Administrator plans to use and 
        integrate District Office personnel of the Administration in 
        the response to a major disaster, including information on the 
        use of personnel for loan processing and loan disbursement;
            (3) a description of the disaster scalability model of the 
        Administration and on what basis or function the plan is 
        scaled;
            (4) a description of how the agency-wide Disaster Oversight 
        Council is structured, which offices comprise its membership, 
        and whether the Associate Deputy Administrator for 
        Entrepreneurial Development of the Administration is a member;
            (5) a description of how the Administrator plans to 
        coordinate the disaster efforts of the Administration with 
        State and local government officials, including recommendations 
        on how to better incorporate State initiatives or programs, 
        such as State-administered bridge loan programs, into the 
        disaster response of the Administration;
            (6) recommendations, if any, on how the Administration can 
        better coordinate its disaster response operations with the 
        operations of other Federal, State, and local entities;
            (7) any surge plan for the disaster loan program of the 
        Administration in effect on or after August 29, 2005 (including 
        surge plans for loss verification, loan processing, mailroom, 
        customer service or call center operations, and a continuity of 
        operations plan);
            (8) the number of full-time equivalent employees and job 
        descriptions for the planning and disaster response staff of 
        the Administration;
            (9) the in-service and preservice training procedures for 
        disaster response staff of the Administration;
            (10) information on the logistical support plans of the 
        Administration (including equipment and staffing needs, and 
        detailed information on how such plans will be scalable 
        depending on the size and scope of the major disaster;
            (11) a description of the findings and recommendations of 
        the Administrator, if any, based on a review of the response of 
        the Administration to Hurricane Katrina of 2005, Hurricane Rita 
        of 2005, and Hurricane Wilma of 2005; and
            (12) a plan for how the Administrator, in consultation with 
        the Administrator of the Federal Emergency Management Agency, 
        will coordinate the provision of accommodations and necessary 
        resources for disaster assistance personnel to effectively 
        perform their responsibilities in the aftermath of a major 
        disaster.
    (c) Biennial Disaster Simulation Exercise.--
            (1) Exercise required.--The Administrator shall conduct a 
        disaster simulation exercise at least once every 2 fiscal 
        years. The exercise shall include the participation of, at a 
        minimum, not less than 50 percent of the individuals in the 
        disaster reserve corps and shall test, at maximum capacity, all 
        of the information technology and telecommunications systems of 
        the Administration that are vital to the activities of the 
        Administration during such a disaster.
            (2) Report.--The Administrator shall include a report on 
        the disaster simulation exercises conducted under paragraph (1) 
        each time the Administration submits a report required under 
        section 43 of the Small Business Act, as added by this Act.

SEC. 12073. DISASTER PLANNING RESPONSIBILITIES.

    (a) Assignment of Small Business Administration Disaster Planning 
Responsibilities.--The disaster planning function of the Administration 
shall be assigned to an individual appointed by the Administrator who--
            (1) is not an employee of the Office of Disaster Assistance 
        of the Administration;
            (2) has proven management ability;
            (3) has substantial knowledge in the field of disaster 
        readiness and emergency response; and
            (4) has demonstrated significant experience in the area of 
        disaster planning.
    (b) Responsibilities.--The individual assigned the disaster 
planning function of the Administration shall report directly and 
solely to the Administrator and shall be responsible for--
            (1) creating, maintaining, and implementing the 
        comprehensive disaster response plan of the Administration 
        described in section 12072;
            (2) ensuring there are in-service and pre-service training 
        procedures for the disaster response staff of the 
        Administration;
            (3) coordinating and directing the training exercises of 
        the Administration relating to disasters, including disaster 
        simulation exercises and disaster exercises coordinated with 
        other government departments and agencies; and
            (4) other responsibilities relevant to disaster planning 
        and readiness, as determined by the Administrator.
    (c) Coordination.--In carrying out the responsibilities described 
in subsection (b), the individual assigned the disaster planning 
function of the Administration shall coordinate with--
            (1) the Office of Disaster Assistance of the 
        Administration;
            (2) the Administrator of the Federal Emergency Management 
        Agency; and
            (3) other Federal, State, and local disaster planning 
        offices, as necessary.
    (d) Resources.--The Administrator shall ensure that the individual 
assigned the disaster planning function of the Administration has 
adequate resources to carry out the duties under this section.
    (e) Report.--Not later than 30 days after the date of enactment of 
this Act, the Administrator shall submit to the Committee on Small 
Business and Entrepreneurship of the Senate and the Committee on Small 
Business of the House of Representatives a report containing--
            (1) a description of the actions of the Administrator to 
        assign an individual the disaster planning function of the 
        Administration;
            (2) information detailing the background and expertise of 
        the individual assigned; and
            (3) information on the status of the implementation of the 
        responsibilities described in subsection (b).

SEC. 12074. ASSIGNMENT OF EMPLOYEES OF THE OFFICE OF DISASTER 
              ASSISTANCE AND DISASTER CADRE.

    (a) In General.--Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)) is amended by inserting immediately after paragraph (6), as 
added by this Act, the following:
            ``(7) Disaster assistance employees.--
                    ``(A) In general.--In carrying out this section, 
                the Administrator may, where practicable, ensure that 
                the number of full-time equivalent employees--
                            ``(i) in the Office of the Disaster 
                        Assistance is not fewer than 800; and
                            ``(ii) in the Disaster Cadre of the 
                        Administration is not fewer than 1,000.
                    ``(B) Report.--In carrying out this subsection, if 
                the number of full-time employees for either the Office 
                of Disaster Assistance or the Disaster Cadre of the 
                Administration is below the level described in 
                subparagraph (A) for that office, not later than 21 
                days after the date on which that staffing level 
                decreased below the level described in subparagraph 
                (A), the Administrator shall submit to the Committee on 
                Appropriations and the Committee on Small Business and 
                Entrepreneurship of the Senate and the Committee on 
                Appropriations and Committee on Small Business of the 
                House of Representatives, a report--
                            ``(i) detailing staffing levels on that 
                        date;
                            ``(ii) requesting, if practicable and 
                        determined appropriate by the Administrator, 
                        additional funds for additional employees; and
                            ``(iii) containing such additional 
                        information, as determined appropriate by the 
                        Administrator.''.

SEC. 12075. COMPREHENSIVE DISASTER RESPONSE PLAN.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended inserting 
after section 39, as added by this Act, the following:

``SEC. 40. COMPREHENSIVE DISASTER RESPONSE PLAN.

    ``(a) Plan Required.--The Administrator shall develop, implement, 
or maintain a comprehensive written disaster response plan. The plan 
shall include the following:
            ``(1) For each region of the Administration, a description 
        of the disasters most likely to occur in that region.
            ``(2) For each disaster described under paragraph (1)--
                    ``(A) an assessment of the disaster;
                    ``(B) an assessment of the demand for 
                Administration assistance most likely to occur in 
                response to the disaster;
                    ``(C) an assessment of the needs of the 
                Administration, with respect to such resources as 
                information technology, telecommunications, human 
                resources, and office space, to meet the demand 
                referred to in subparagraph (B); and
                    ``(D) guidelines pursuant to which the 
                Administration will coordinate with other Federal 
                agencies and with State and local authorities to best 
                respond to the demand referred to in subparagraph (B) 
                and to best use the resources referred to in that 
                subparagraph.
    ``(b) Completion; Revision.--The first plan required by subsection 
(a) shall be completed not later than 180 days after the date of the 
enactment of this section. Thereafter, the Administrator shall update 
the plan on an annual basis and following any major disaster relating 
to which the Administrator declares eligibility for additional disaster 
assistance under section 7(b)(9).
    ``(c) Knowledge Required.--The Administrator shall carry out 
subsections (a) and (b) through an individual with substantial 
knowledge in the field of disaster readiness and emergency response.
    ``(d) Report.--The Administrator shall include a report on the plan 
whenever the Administration submits the report required by section 
43.''.

SEC. 12076. PLANS TO SECURE SUFFICIENT OFFICE SPACE.

    The Small Business Act is amended by inserting after section 40, as 
added by this Act, the following:

``SEC. 41. PLANS TO SECURE SUFFICIENT OFFICE SPACE.

    ``(a) Plans Required.--The Administrator shall develop long-term 
plans to secure sufficient office space to accommodate an expanded 
workforce in times of disaster.
    ``(b) Report.--The Administrator shall include a report on the 
plans developed under subsection (a) each time the Administration 
submits a report required under section 43.''.

SEC. 12077. APPLICANTS THAT HAVE BECOME A MAJOR SOURCE OF EMPLOYMENT 
              DUE TO CHANGED ECONOMIC CIRCUMSTANCES.

    Section 7(b)(3)(E) of the Small Business Act (15 U.S.C. 
636(b)(3)(E)) is amended by inserting after ``constitutes'' the 
following: ``, or have become due to changed economic circumstances,''.

SEC. 12078. DISASTER LOAN AMOUNTS.

    (a) Increased Loan Caps.--Section 7(b) of the Small Business Act 
(15 U.S.C. 636(b)) is amended by inserting immediately after paragraph 
(7), as added by this Act, the following:
            ``(8) Increased loan caps.--
                    ``(A) Aggregate loan amounts.--Except as provided 
                in subparagraph (B), and notwithstanding any other 
                provision of law, the aggregate loan amount outstanding 
                and committed to a borrower under this subsection may 
                not exceed $2,000,000.
                    ``(B) Waiver authority.--The Administrator may, at 
                the discretion of the Administrator, increase the 
                aggregate loan amount under subparagraph (A) for loans 
                relating to a disaster to a level established by the 
                Administrator, based on appropriate economic indicators 
                for the region in which that disaster occurred.''.
    (b) Disaster Mitigation.--
            (1) In general.--Section 7(b)(1)(A) of the Small Business 
        Act (15 U.S.C. 636(b)(1)(A)) is amended by inserting ``of the 
        aggregate costs of such damage or destruction (whether or not 
        compensated for by insurance or otherwise)'' after ``20 per 
        centum''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to a loan or guarantee made after the 
        date of enactment of this Act.
    (c) Technical Amendments.--Section 7(b) of the Small Business Act 
(15 U.S.C. 636(b)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``the, Administration'' and inserting ``the Administration''; 
        and
            (2) in the undesignated matter at the end--
                    (A) by striking ``, (2), and (4)'' and inserting 
                ``and (2)''; and
                    (B) by striking ``, (2), or (4)'' and inserting 
                ``(2)''.

SEC. 12079. SMALL BUSINESS BONDING THRESHOLD.

    (a) In General.--Except as provided in subsection (b), and 
notwithstanding any other provision of law, for any procurement related 
to a major disaster, the Administrator may, upon such terms and 
conditions as the Administrator may prescribe, guarantee and enter into 
commitments to guarantee any surety against loss resulting from a 
breach of the terms of a bid bond, payment bond, performance bond, or 
bonds ancillary thereto, by a principal on any total work order or 
contract amount at the time of bond execution that does not exceed 
$5,000,000.
    (b) Increase of Amount.--Upon request of the head of any Federal 
agency other than the Administration involved in reconstruction efforts 
in response to a major disaster, the Administrator may guarantee and 
enter into a commitment to guarantee any security against loss under 
subsection (a) on any total work order or contract amount at the time 
of bond execution that does not exceed $10,000,000.
    (c) Limitation on Use of Other Funds.--The Administrator may carry 
out this section only with amounts appropriated in advance specifically 
to carry out this section.

                       PART II--DISASTER LENDING

SEC. 12081. ELIGIBILITY FOR ADDITIONAL DISASTER ASSISTANCE.

    Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is 
amended by inserting immediately after paragraph (8), as added by this 
Act, the following:
            ``(9) Declaration of eligibility for additional disaster 
        assistance.--
                    ``(A) In general.--If the President declares a 
                major disaster, the Administrator may declare 
                eligibility for additional disaster assistance in 
                accordance with this paragraph.
                    ``(B) Threshold.--A major disaster for which the 
                Administrator declares eligibility for additional 
                disaster assistance under this paragraph shall--
                            ``(i) have resulted in extraordinary levels 
                        of casualties or damage or disruption severely 
                        affecting the population (including mass 
                        evacuations), infrastructure, environment, 
                        economy, national morale, or government 
                        functions in an area;
                            ``(ii) be comparable to the description of 
                        a catastrophic incident in the National 
                        Response Plan of the Administration, or any 
                        successor thereto, unless there is no successor 
                        to such plan, in which case this clause shall 
                        have no force or effect; and
                            ``(iii) be of such size and scope that--
                                    ``(I) the disaster assistance 
                                programs under the other paragraphs 
                                under this subsection are incapable of 
                                providing adequate and timely 
                                assistance to individuals or business 
                                concerns located within the disaster 
                                area; or
                                    ``(II) a significant number of 
                                business concerns outside the disaster 
                                area have suffered disaster-related 
                                substantial economic injury as a result 
                                of the incident.''.

SEC. 12082. ADDITIONAL ECONOMIC INJURY DISASTER LOAN ASSISTANCE.

    Paragraph (9) of section 7(b) of the Small Business Act (15 U.S.C. 
636(b)), as added by section 12081, is amended by adding at the end the 
following:
                    ``(C) Additional economic injury disaster loan 
                assistance.--
                            ``(i) In general.--If the Administrator 
                        declares eligibility for additional disaster 
                        assistance under this paragraph, the 
                        Administrator may make such loans under this 
                        subparagraph (either directly or in cooperation 
                        with banks or other lending institutions 
                        through agreements to participate on an 
                        immediate or deferred basis) as the 
                        Administrator determines appropriate to 
                        eligible small business concerns located 
                        anywhere in the United States.
                            ``(ii) Processing time.--
                                    ``(I) In general.--If the 
                                Administrator determines that the 
                                average processing time for 
                                applications for disaster loans under 
                                this subparagraph relating to a 
                                specific major disaster is more than 15 
                                days, the Administrator shall give 
                                priority to the processing of such 
                                applications submitted by eligible 
                                small business concerns located inside 
                                the disaster area, until the 
                                Administrator determines that the 
                                average processing time for such 
                                applications is not more than 15 days.
                                    ``(II) Suspension of applications 
                                from outside disaster area.--If the 
                                Administrator determines that the 
                                average processing time for 
                                applications for disaster loans under 
                                this subparagraph relating to a 
                                specific major disaster is more than 30 
                                days, the Administrator shall suspend 
                                the processing of such applications 
                                submitted by eligible small business 
                                concerns located outside the disaster 
                                area, until the Administrator 
                                determines that the average processing 
                                time for such applications is not more 
                                than 15 days.
                            ``(iii) Loan terms.--A loan under this 
                        subparagraph shall be made on the same terms as 
                        a loan under paragraph (2).
                    ``(D) Definitions.--In this paragraph--
                            ``(i) the term `disaster area' means the 
                        area for which the applicable major disaster 
                        was declared;
                            ``(ii) the term `disaster-related 
                        substantial economic injury' means economic 
                        harm to a business concern that results in the 
                        inability of the business concern to--
                                    ``(I) meet its obligations as it 
                                matures;
                                    ``(II) meet its ordinary and 
                                necessary operating expenses; or
                                    ``(III) market, produce, or provide 
                                a product or service ordinarily 
                                marketed, produced, or provided by the 
                                business concern because the business 
                                concern relies on materials from the 
                                disaster area or sells or markets in 
                                the disaster area; and
                            ``(iii) the term `eligible small business 
                        concern' means a small business concern--
                                    ``(I) that has suffered disaster-
                                related substantial economic injury as 
                                a result of the applicable major 
                                disaster; and
                                    ``(II)(aa) for which not less than 
                                25 percent of the market share of that 
                                small business concern is from business 
                                transacted in the disaster area;
                                    ``(bb) for which not less than 25 
                                percent of an input into a production 
                                process of that small business concern 
                                is from the disaster area; or
                                    ``(cc) that relies on a provider 
                                located in the disaster area for a 
                                service that is not readily available 
                                elsewhere.''.

SEC. 12083. PRIVATE DISASTER LOANS.

    (a) In General.--Section 7 of the Small Business Act (15 U.S.C. 
636) is amended by inserting after subsection (b) the following:
    ``(c) Private Disaster Loans.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `disaster area' means any area for 
                which the President declared a major disaster relating 
                to which the Administrator declares eligibility for 
                additional disaster assistance under subsection (b)(9), 
                during the period of that major disaster declaration;
                    ``(B) the term `eligible individual' means an 
                individual who is eligible for disaster assistance 
                under subsection (b)(1) relating to a major disaster 
                relating to which the Administrator declares 
                eligibility for additional disaster assistance under 
                subsection (b)(9);
                    ``(C) the term `eligible small business concern' 
                means a business concern that is--
                            ``(i) a small business concern, as defined 
                        under this Act; or
                            ``(ii) a small business concern, as defined 
                        in section 103 of the Small Business Investment 
                        Act of 1958;
                    ``(D) the term `preferred lender' means a lender 
                participating in the Preferred Lender Program;
                    ``(E) the term `Preferred Lender Program' has the 
                meaning given that term in subsection (a)(2)(C)(ii); 
                and
                    ``(F) the term `qualified private lender' means any 
                privately-owned bank or other lending institution 
                that--
                            ``(i) is not a preferred lender; and
                            ``(ii) the Administrator determines meets 
                        the criteria established under paragraph (10).
            ``(2) Program required.--The Administrator shall carry out 
        a program, to be known as the Private Disaster Assistance 
        program, under which the Administration may guarantee timely 
        payment of principal and interest, as scheduled, on any loan 
        made to an eligible small business concern located in a 
        disaster area and to an eligible individual.
            ``(3) Use of loans.--A loan guaranteed by the Administrator 
        under this subsection may be used for any purpose authorized 
        under subsection (b).
            ``(4) Online applications.--
                    ``(A) Establishment.--The Administrator may 
                establish, directly or through an agreement with 
                another entity, an online application process for loans 
                guaranteed under this subsection.
                    ``(B) Other federal assistance.--The Administrator 
                may coordinate with the head of any other appropriate 
                Federal agency so that any application submitted 
                through an online application process established under 
                this paragraph may be considered for any other Federal 
                assistance program for disaster relief.
                    ``(C) Consultation.--In establishing an online 
                application process under this paragraph, the 
                Administrator shall consult with appropriate persons 
                from the public and private sectors, including private 
                lenders.
            ``(5) Maximum amounts.--
                    ``(A) Guarantee percentage.--The Administrator may 
                guarantee not more than 85 percent of a loan under this 
                subsection.
                    ``(B) Loan amount.--The maximum amount of a loan 
                guaranteed under this subsection shall be $2,000,000.
            ``(6) Terms and conditions.--A loan guaranteed under this 
        subsection shall be made under the same terms and conditions as 
        a loan under subsection (b).
            ``(7) Lenders.--
                    ``(A) In general.--A loan guaranteed under this 
                subsection made to--
                            ``(i) a qualified individual may be made by 
                        a preferred lender; and
                            ``(ii) a qualified small business concern 
                        may be made by a qualified private lender or by 
                        a preferred lender that also makes loans to 
                        qualified individuals.
                    ``(B) Compliance.--If the Administrator determines 
                that a preferred lender knowingly failed to comply with 
                the underwriting standards for loans guaranteed under 
                this subsection or violated the terms of the standard 
                operating procedure agreement between that preferred 
                lender and the Administration, the Administrator shall 
                do 1 or more of the following:
                            ``(i) Exclude the preferred lender from 
                        participating in the program under this 
                        subsection.
                            ``(ii) Exclude the preferred lender from 
                        participating in the Preferred Lender Program 
                        for a period of not more than 5 years.
            ``(8) Fees.--
                    ``(A) In general.--The Administrator may not 
                collect a guarantee fee under this subsection.
                    ``(B) Origination fee.--The Administrator may pay a 
                qualified private lender or preferred lender an 
                origination fee for a loan guaranteed under this 
                subsection in an amount agreed upon in advance between 
                the qualified private lender or preferred lender and 
                the Administrator.
            ``(9) Documentation.--A qualified private lender or 
        preferred lender may use its own loan documentation for a loan 
        guaranteed by the Administrator under this subsection, to the 
        extent authorized by the Administrator. The ability of a lender 
        to use its own loan documentation for a loan guaranteed under 
        this subsection shall not be considered part of the criteria 
        for becoming a qualified private lender under the regulations 
        promulgated under paragraph (10).
            ``(10) Implementation regulations.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of the Small Business Disaster 
                Response and Loan Improvements Act of 2008, the 
                Administrator shall issue final regulations 
                establishing permanent criteria for qualified private 
                lenders.
                    ``(B) Report to congress.--Not later than 6 months 
                after the date of enactment of the Small Business 
                Disaster Response and Loan Improvements Act of 2008, 
                the Administrator shall submit a report on the progress 
                of the regulations required by subparagraph (A) to the 
                Committee on Small Business and Entrepreneurship of the 
                Senate and the Committee on Small Business of the House 
                of Representatives.
            ``(11) Authorization of appropriations.--
                    ``(A) In general.--Amounts necessary to carry out 
                this subsection shall be made available from amounts 
                appropriated to the Administration to carry out 
                subsection (b).
                    ``(B) Authority to reduce interest rates and other 
                terms and conditions.--Funds appropriated to the 
                Administration to carry out this subsection, may be 
                used by the Administrator to meet the loan terms and 
                conditions specified in paragraph (6).
            ``(12) Purchase of loans.--The Administrator may enter into 
        an agreement with a qualified private lender or preferred 
        lender to purchase any loan guaranteed under this 
        subsection.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to any major disaster declared on or after the date of enactment 
of this Act.

SEC. 12084. IMMEDIATE DISASTER ASSISTANCE PROGRAM.

    The Small Business Act is amended by inserting after section 41, as 
added by this Act, the following:

``SEC. 42. IMMEDIATE DISASTER ASSISTANCE PROGRAM.

    ``(a) Program Required.--The Administrator shall carry out a 
program, to be known as the Immediate Disaster Assistance program, 
under which the Administration participates on a deferred (guaranteed) 
basis in 85 percent of the balance of the financing outstanding at the 
time of disbursement of the loan if such balance is less than or equal 
to $25,000 for businesses affected by a disaster.
    ``(b) Eligibility Requirement.--To receive a loan guaranteed under 
subsection (a), the applicant shall also apply for, and meet basic 
eligibility standards for, a loan under subsection (b) or (c) of 
section 7.
    ``(c) Use of Proceeds.--A person who receives a loan under 
subsection (b) or (c) of section 7 shall use the proceeds of that loan 
to repay all loans guaranteed under subsection (a), if any, before 
using the proceeds for any other purpose.
    ``(d) Loan Terms.--
            ``(1) No prepayment penalty.--There shall be no prepayment 
        penalty on a loan guaranteed under subsection (a).
            ``(2) Repayment.--A person who receives a loan guaranteed 
        under subsection (a) and who is disapproved for a loan under 
        subsection (b) or (c) of section 7, as the case may be, shall 
        repay the loan guaranteed under subsection (a) not later than 
        the date established by the Administrator, which may not be 
        earlier than 10 years after the date on which the loan 
        guaranteed under subsection is disbursed.
    ``(e) Approval or Disapproval.--The Administrator shall ensure that 
each applicant for a loan under the program receives a decision 
approving or disapproving of the application within 36 hours after the 
Administration receives the application.''.

SEC. 12085. EXPEDITED DISASTER ASSISTANCE LOAN PROGRAM.

    (a) Definition.--In this section, the term ``program'' means the 
expedited disaster assistance business loan program established under 
subsection (b).
    (b) Creation of Program.--The Administrator shall take such 
administrative action as is necessary to establish and implement an 
expedited disaster assistance business loan program under which the 
Administration may, on an expedited basis, guarantee timely payment of 
principal and interest, as scheduled on any loan made to an eligible 
small business concern under paragraph (9) of section 7(b) of the Small 
Business Act (15 U.S.C. 636(b)), as added by this Act.
    (c) Consultation Required.--In establishing the program, the 
Administrator shall consult with--
            (1) appropriate personnel of the Administration (including 
        District Office personnel of the Administration);
            (2) appropriate technical assistance providers (including 
        small business development centers);
            (3) appropriate lenders and credit unions;
            (4) the Committee on Small Business and Entrepreneurship of 
        the Senate; and
            (5) the Committee on Small Business of the House of 
        Representatives.
    (d) Rules.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator shall issue rules in 
        final form establishing and implementing the program in 
        accordance with this section. Such rules shall apply as 
        provided for in this section, beginning 90 days after their 
        issuance in final form.
            (2) Contents.--The rules promulgated under paragraph (1) 
        shall--
                    (A) identify whether appropriate uses of funds 
                under the program may include--
                            (i) paying employees;
                            (ii) paying bills and other financial 
                        obligations;
                            (iii) making repairs;
                            (iv) purchasing inventory;
                            (v) restarting or operating a small 
                        business concern in the community in which it 
                        was conducting operations prior to the 
                        applicable major disaster, or to a neighboring 
                        area, county, or parish in the disaster area; 
                        or
                            (vi) covering additional costs until the 
                        small business concern is able to obtain 
                        funding through insurance claims, Federal 
                        assistance programs, or other sources; and
                    (B) set the terms and conditions of any loan made 
                under the program, subject to paragraph (3).
            (3) Terms and conditions.--A loan guaranteed by the 
        Administration under this section--
                    (A) shall be for not more than $150,000;
                    (B) shall be a short-term loan, not to exceed 180 
                days, except that the Administrator may extend such 
                term as the Administrator determines necessary or 
                appropriate on a case-by-case basis;
                    (C) shall have an interest rate not to exceed 300 
                basis points above the interest rate established by the 
                Board of Governors of the Federal Reserve System that 1 
                bank charges another for reserves that are lent on an 
                overnight basis on the date the loan is made;
                    (D) shall have no prepayment penalty;
                    (E) may only be made to a borrower that meets the 
                requirements for a loan under section 7(b) of the Small 
                Business Act (15 U.S.C. 636(b)), as amended by this 
                Act;
                    (F) may be refinanced as part of any subsequent 
                disaster assistance provided under section 7(b) of the 
                Small Business Act (15 U.S.C. 636(b)), as amended by 
                this Act;
                    (G) may receive expedited loss verification and 
                loan processing, if the applicant is--
                            (i) a major source of employment in the 
                        disaster area (which shall be determined in the 
                        same manner as under section 7(b)(3)(B) of the 
                        Small Business Act (15 U.S.C. 636(b)(3)(B))); 
                        or
                            (ii) vital to recovery efforts in the 
                        region (including providing debris removal 
                        services, manufactured housing, or building 
                        materials); and
                    (H) shall be subject to such additional terms as 
                the Administrator determines necessary or appropriate.
    (e) Report to Congress.--Not later than 5 months after the date of 
enactment of this Act, the Administrator shall report to the Committee 
on Small Business and Entrepreneurship of the Senate and the Committee 
on Small Business of the House of Representatives on the progress of 
the Administrator in establishing the program.
    (f) Authorization.--There are authorized to be appropriated to the 
Administrator such sums as are necessary to carry out this section.

SEC. 12086. GULF COAST DISASTER LOAN REFINANCING PROGRAM.

    (a) In General.--The Administrator may carry out a program to 
refinance Gulf Coast disaster loans (in this section referred to as the 
``program'').
    (b) Terms.--The terms of a Gulf Coast disaster loan refinanced 
under the program shall be identical to the terms of the original loan, 
except that the Administrator may provide an option to defer repayment 
on the loan. A deferment under the program shall end not later than 4 
years after the date on which the initial disbursement under the 
original loan was made.
    (c) Amount.--The amount of a Gulf Coast disaster loan refinanced 
under the program shall not exceed the amount of the original loan.
    (d) Disclosure of Accrued Interest.--If the Administrator provides 
an option to defer repayment under the program, the Administrator shall 
disclose the accrued interest that must be paid under the option.
    (e) Definition.--In this section, the term ``Gulf Coast disaster 
loan'' means a loan--
            (1) made under section 7(b) of the Small Business Act (15 
        U.S.C. 636(b));
            (2) in response to Hurricane Katrina of 2005, Hurricane 
        Rita of 2005, or Hurricane Wilma of 2005; and
            (3) to a small business concern located in a county or 
        parish designated by the Administrator as a disaster area by 
        reason of a hurricane described in paragraph (2) under disaster 
        declaration 10176, 10177, 10178, 10179, 10180, 10181, 10203, 
        10204, 10205, 10206, 10222, or 10223.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.

                        PART III--MISCELLANEOUS

SEC. 12091. REPORTS ON DISASTER ASSISTANCE.

    (a) Monthly Accounting Report to Congress.--
            (1) Reporting requirements.--Not later than the fifth 
        business day of each month during the applicable period for a 
        major disaster, the Administrator shall submit to the Committee 
        on Small Business and Entrepreneurship and the Committee on 
        Appropriations of the Senate and to the Committee on Small 
        Business and the Committee on Appropriations of the House of 
        Representatives a report on the operation of the disaster loan 
        program authorized under section 7 of the Small Business Act 
        (15 U.S.C. 636) for that major disaster during the preceding 
        month.
            (2) Contents.--Each report submitted under paragraph (1) 
        shall include--
                    (A) the daily average lending volume, in number of 
                loans and dollars, and the percent by which each 
                category has increased or decreased since the previous 
                report under paragraph (1);
                    (B) the weekly average lending volume, in number of 
                loans and dollars, and the percent by which each 
                category has increased or decreased since the previous 
                report under paragraph (1);
                    (C) the amount of funding spent over the month for 
                loans, both in appropriations and program level, and 
                the percent by which each category has increased or 
                decreased since the previous report under paragraph 
                (1);
                    (D) the amount of funding available for loans, both 
                in appropriations and program level, and the percent by 
                which each category has increased or decreased since 
                the previous report under paragraph (1), noting the 
                source of any additional funding;
                    (E) an estimate of how long the available funding 
                for such loans will last, based on the spending rate;
                    (F) the amount of funding spent over the month for 
                staff, along with the number of staff, and the percent 
                by which each category has increased or decreased since 
                the previous report under paragraph (1);
                    (G) the amount of funding spent over the month for 
                administrative costs, and the percent by which such 
                spending has increased or decreased since the previous 
                report under paragraph (1);
                    (H) the amount of funding available for salaries 
                and expenses combined, and the percent by which such 
                funding has increased or decreased since the previous 
                report under paragraph (1), noting the source of any 
                additional funding; and
                    (I) an estimate of how long the available funding 
                for salaries and expenses will last, based on the 
                spending rate.
    (b) Weekly Disaster Updates to Congress for Presidentially Declared 
Disasters.--
            (1) In general.--Each week during a disaster update period, 
        the Administration shall submit to the Committee on Small 
        Business and Entrepreneurship of the Senate and to the 
        Committee on Small Business of the House of Representatives a 
        report on the operation of the disaster loan program of the 
        Administration for the area in which the President declared a 
        major disaster.
            (2) Contents.--Each report submitted under paragraph (1) 
        shall include--
                    (A) the number of Administration staff performing 
                loan processing, field inspection, and other duties for 
                the declared disaster, and the allocations of such 
                staff in the disaster field offices, disaster recovery 
                centers, workshops, and other Administration offices 
                nationwide;
                    (B) the daily number of applications received from 
                applicants in the relevant area, as well as a breakdown 
                of such figures by State;
                    (C) the daily number of applications pending 
                application entry from applicants in the relevant area, 
                as well as a breakdown of such figures by State;
                    (D) the daily number of applications withdrawn by 
                applicants in the relevant area, as well as a breakdown 
                of such figures by State;
                    (E) the daily number of applications summarily 
                declined by the Administration from applicants in the 
                relevant area, as well as a breakdown of such figures 
                by State;
                    (F) the daily number of applications declined by 
                the Administration from applicants in the relevant 
                area, as well as a breakdown of such figures by State;
                    (G) the daily number of applications in process 
                from applicants in the relevant area, as well as a 
                breakdown of such figures by State;
                    (H) the daily number of applications approved by 
                the Administration from applicants in the relevant 
                area, as well as a breakdown of such figures by State;
                    (I) the daily dollar amount of applications 
                approved by the Administration from applicants in the 
                relevant area, as well as a breakdown of such figures 
                by State;
                    (J) the daily amount of loans dispersed, both 
                partially and fully, by the Administration to 
                applicants in the relevant area, as well as a breakdown 
                of such figures by State;
                    (K) the daily dollar amount of loans disbursed, 
                both partially and fully, from the relevant area, as 
                well as a breakdown of such figures by State;
                    (L) the number of applications approved, including 
                dollar amount approved, as well as applications 
                partially and fully disbursed, including dollar 
                amounts, since the last report under paragraph (1); and
                    (M) the declaration date, physical damage closing 
                date, economic injury closing date, and number of 
                counties included in the declaration of a major 
                disaster.
    (c) Periods When Additional Disaster Assistance Is Made 
Available.--
            (1) In general.--During any period for which the 
        Administrator declares eligibility for additional disaster 
        assistance under paragraph (9) of section 7(b) of the Small 
        Business Act (15 U.S.C. 632(b)), as amended by this Act, the 
        Administrator shall, on a monthly basis, submit to the 
        Committee on Small Business and Entrepreneurship of the Senate 
        and to the Committee on Small Business of the House of 
        Representatives a report on the disaster assistance operations 
        of the Administration with respect to the applicable major 
        disaster.
            (2) Contents.--Each report submitted under paragraph (1) 
        shall specify--
                    (A) the number of applications for disaster 
                assistance distributed;
                    (B) the number of applications for disaster 
                assistance received;
                    (C) the average time for the Administration to 
                approve or disapprove an application for disaster 
                assistance;
                    (D) the amount of disaster loans approved;
                    (E) the average time for initial disbursement of 
                disaster loan proceeds; and
                    (F) the amount of disaster loan proceeds disbursed.
    (d) Notice of the Need for Supplemental Funds.--On the same date 
that the Administrator notifies any committee of the Senate or the 
House of Representatives that supplemental funding is necessary for the 
disaster loan program of the Administration in any fiscal year, the 
Administrator shall notify in writing the Committee on Small Business 
and Entrepreneurship of the Senate and the Committee on Small Business 
of the House of Representatives regarding the need for supplemental 
funds for that loan program.
    (e) Report on Contracting.--
            (1) In general.--Not later than 6 months after the date on 
        which the President declares a major disaster, and every 6 
        months thereafter until the date that is 18 months after the 
        date on which the major disaster was declared, the 
        Administrator shall submit a report to the Committee on Small 
        Business and Entrepreneurship of the Senate and to the 
        Committee on Small Business of the House of Representatives 
        regarding Federal contracts awarded as a result of that major 
        disaster.
            (2) Contents.--Each report submitted under paragraph (1) 
        shall include--
                    (A) the total number of contracts awarded as a 
                result of that major disaster;
                    (B) the total number of contracts awarded to small 
                business concerns as a result of that major disaster;
                    (C) the total number of contracts awarded to women 
                and minority-owned businesses as a result of that major 
                disaster; and
                    (D) the total number of contracts awarded to local 
                businesses as a result of that major disaster.
    (f) Report on Loan Approval Rate.--
            (1) In general.--Not later than 6 months after the date of 
        enactment of this Act, the Administrator shall submit a report 
        to the Committee on Small Business and Entrepreneurship of the 
        Senate and the Committee on Small Business of the House of 
        Representatives detailing how the Administration can improve 
        the processing of applications under the disaster loan program 
        of the Administration.
            (2) Contents.--The report submitted under paragraph (1) 
        shall include--
                    (A) recommendations, if any, regarding--
                            (i) staffing levels during a major 
                        disaster;
                            (ii) how to improve the process for 
                        processing, approving, and disbursing loans 
                        under the disaster loan program of the 
                        Administration, to ensure that the maximum 
                        assistance is provided to victims in a timely 
                        manner;
                            (iii) the viability of using alternative 
                        methods for assessing the ability of an 
                        applicant to repay a loan, including the credit 
                        score of the applicant on the day before the 
                        date on which the disaster for which the 
                        applicant is seeking assistance was declared;
                            (iv) methods, if any, for the 
                        Administration to expedite loss verification 
                        and loan processing of disaster loans during a 
                        major disaster for businesses affected by, and 
                        located in the area for which the President 
                        declared, the major disaster that are a major 
                        source of employment in the area or are vital 
                        to recovery efforts in the region (including 
                        providing debris removal services, manufactured 
                        housing, or building materials);
                            (v) legislative changes, if any, needed to 
                        implement findings from the Accelerated 
                        Disaster Response Initiative of the 
                        Administration; and
                            (vi) a description of how the 
                        Administration plans to integrate and 
                        coordinate the response to a major disaster 
                        with the technical assistance programs of the 
                        Administration; and
                    (B) the plans of the Administrator for implementing 
                any recommendation made under subparagraph (A).
    (g) Reports on Disaster Assistance.--The Small Business Act is 
amended by inserting after section 42, as added by this Act, the 
following:

``SEC. 43. ANNUAL REPORTS ON DISASTER ASSISTANCE.

    ``Not later than 45 days after the end of a fiscal year, the 
Administrator shall submit to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Small Business of 
the House of Representatives a report on the disaster assistance 
operations of the Administration for that fiscal year. The report 
shall--
            ``(1) specify the number of Administration personnel 
        involved in such operations;
            ``(2) describe any material changes to those operations, 
        such as changes to technologies used or to personnel 
        responsibilities;
            ``(3) describe and assess the effectiveness of the 
        Administration in responding to disasters during that fiscal 
        year, including a description of the number and amounts of 
        loans made for damage and for economic injury; and
            ``(4) describe the plans of the Administration for 
        preparing to respond to disasters during the next fiscal 
        year.''.

                     TITLE XIII--COMMODITY FUTURES

SEC. 13001. SHORT TITLE.

    This title may be cited as the ``CFTC Reauthorization Act of 
2008''.

                     Subtitle A--General Provisions

SEC. 13101. COMMISSION AUTHORITY OVER AGREEMENTS, CONTRACTS OR 
              TRANSACTIONS IN FOREIGN CURRENCY.

    (a) In General.--Section 2(c)(2) of the Commodity Exchange Act (7 
U.S.C. 2(c)(2)) is amended by striking subparagraphs (B) and (C) and 
inserting the following:
                    ``(B) Agreements, contracts, and transactions in 
                retail foreign currency.--
                            ``(i) This Act applies to, and the 
                        Commission shall have jurisdiction over, an 
                        agreement, contract, or transaction in foreign 
                        currency that--
                                    ``(I) is a contract of sale of a 
                                commodity for future delivery (or an 
                                option on such a contract) or an option 
                                (other than an option executed or 
                                traded on a national securities 
                                exchange registered pursuant to section 
                                6(a) of the Securities Exchange Act of 
                                1934 (15 U.S.C. 78f(a))); and
                                    ``(II) is offered to, or entered 
                                into with, a person that is not an 
                                eligible contract participant, unless 
                                the counterparty, or the person 
                                offering to be the counterparty, of the 
                                person is--
                                            ``(aa) a financial 
                                        institution;
                                            ``(bb)(AA) a broker or 
                                        dealer registered under section 
                                        15(b) (except paragraph (11) 
                                        thereof) or 15C of the 
                                        Securities Exchange Act of 1934 
                                        (15 U.S.C. 78o(b), 78o-5); or
                                            ``(BB) an associated person 
                                        of a broker or dealer 
                                        registered under section 15(b) 
                                        (except paragraph (11) thereof) 
                                        or 15C of the Securities 
                                        Exchange Act of 1934 (15 U.S.C. 
                                        78o(b), 78o-5) concerning the 
                                        financial or securities 
                                        activities of which the broker 
                                        or dealer makes and keeps 
                                        records under section 15C(b) or 
                                        17(h) of the Securities 
                                        Exchange Act of 1934 (15 U.S.C. 
                                        78o-5(b), 78q(h));
                                            ``(cc)(AA) a futures 
                                        commission merchant that is 
                                        primarily or substantially 
                                        engaged in the business 
                                        activities described in section 
                                        1a(20) of this Act, is 
                                        registered under this Act, is 
                                        not a person described in item 
                                        (bb) of this subclause, and 
                                        maintains adjusted net capital 
                                        equal to or in excess of the 
                                        dollar amount that applies for 
                                        purposes of clause (ii) of this 
                                        subparagraph; or
                                            ``(BB) an affiliated person 
                                        of a futures commission 
                                        merchant that is primarily or 
                                        substantially engaged in the 
                                        business activities described 
                                        in section 1a(20) of this Act, 
                                        is registered under this Act, 
                                        and is not a person described 
                                        in item (bb) of this subclause, 
                                        if the affiliated person 
                                        maintains adjusted net capital 
                                        equal to or in excess of the 
                                        dollar amount that applies for 
                                        purposes of clause (ii) of this 
                                        subparagraph and is not a 
                                        person described in such item 
                                        (bb), and the futures 
                                        commission merchant makes and 
                                        keeps records under section 
                                        4f(c)(2)(B) of this Act 
                                        concerning the futures and 
                                        other financial activities of 
                                        the affiliated person;
                                            ``(dd) an insurance company 
                                        described in section 
                                        1a(12)(A)(ii) of this Act, or a 
                                        regulated subsidiary or 
                                        affiliate of such an insurance 
                                        company;
                                            ``(ee) a financial holding 
                                        company (as defined in section 
                                        2 of the Bank Holding Company 
                                        Act of 1956);
                                            ``(ff) an investment bank 
                                        holding company (as defined in 
                                        section 17(i) of the Securities 
                                        Exchange Act of 1934 (15 U.S.C. 
                                        78q(i))); or
                                            ``(gg) a retail foreign 
                                        exchange dealer that maintains 
                                        adjusted net capital equal to 
                                        or in excess of the dollar 
                                        amount that applies for 
                                        purposes of clause (ii) of this 
                                        subparagraph and is registered 
                                        in such capacity with the 
                                        Commission, subject to such 
                                        terms and conditions as the 
                                        Commission shall prescribe, and 
                                        is a member of a futures 
                                        association registered under 
                                        section 17.
                            ``(ii) The dollar amount that applies for 
                        purposes of this clause is--
                                    ``(I) $10,000,000, beginning 120 
                                days after the date of the enactment of 
                                this clause;
                                    ``(II) $15,000,000, beginning 240 
                                days after such date of enactment; and
                                    ``(III) $20,000,000, beginning 360 
                                days after such date of enactment.
                            ``(iii) Notwithstanding items (cc) and (gg) 
                        of clause (i)(II) of this subparagraph, 
                        agreements, contracts, or transactions 
                        described in clause (i) of this subparagraph 
                        shall be subject to subsection (a)(1)(B) of 
                        this section and sections 4(b), 4b, 4c(b), 4o, 
                        6(c) and 6(d) (except to the extent that 
                        sections 6(c) and 6(d) prohibit manipulation of 
                        the market price of any commodity in interstate 
                        commerce, or for future delivery on or subject 
                        to the rules of any market), 6c, 6d, 8(a), 
                        13(a), and 13(b) if the agreements, contracts, 
                        or transactions are offered, or entered into, 
                        by a person that is registered as a futures 
                        commission merchant or retail foreign exchange 
                        dealer, or an affiliated person of a futures 
                        commission merchant registered under this Act 
                        that is not also a person described in any of 
                        item (aa), (bb), (dd), (ee), or (ff) of clause 
                        (i)(II) of this subparagraph.
                            ``(iv)(I) Notwithstanding items (cc) and 
                        (gg) of clause (i)(II), a person, unless 
                        registered in such capacity as the Commission 
                        by rule, regulation, or order shall determine 
                        and a member of a futures association 
                        registered under section 17, shall not--
                                    ``(aa) solicit or accept orders 
                                from any person that is not an eligible 
                                contract participant in connection with 
                                agreements, contracts, or transactions 
                                described in clause (i) entered into 
                                with or to be entered into with a 
                                person who is not described in item 
                                (aa), (bb), (dd), (ee), or (ff) of 
                                clause (i)(II);
                                    ``(bb) exercise discretionary 
                                trading authority or obtain written 
                                authorization to exercise discretionary 
                                trading authority over any account for 
                                or on behalf of any person that is not 
                                an eligible contract participant in 
                                connection with agreements, contracts, 
                                or transactions described in clause (i) 
                                entered into with or to be entered into 
                                with a person who is not described in 
                                item (aa), (bb), (dd), (ee), or (ff) of 
                                clause (i)(II); or
                                    ``(cc) operate or solicit funds, 
                                securities, or property for any pooled 
                                investment vehicle that is not an 
                                eligible contract participant in 
                                connection with agreements, contracts, 
                                or transactions described in clause (i) 
                                entered into with or to be entered into 
                                with a person who is not described in 
                                item (aa), (bb), (dd), (ee), or (ff) of 
                                clause (i)(II).
                            ``(II) Subclause (I) of this clause shall 
                        not apply to--
                                    ``(aa) any person described in any 
                                of item (aa), (bb), (dd), (ee), or (ff) 
                                of clause (i)(II);
                                    ``(bb) any such person's associated 
                                persons; or
                                    ``(cc) any person who would be 
                                exempt from registration if engaging in 
                                the same activities in connection with 
                                transactions conducted on or subject to 
                                the rules of a contract market or a 
                                derivatives transaction execution 
                                facility.
                            ``(III) Notwithstanding items (cc) and (gg) 
                        of clause (i)(II), the Commission may make, 
                        promulgate, and enforce such rules and 
                        regulations as, in the judgment of the 
                        Commission, are reasonably necessary to 
                        effectuate any of the provisions of, or to 
                        accomplish any of the purposes of, this Act in 
                        connection with the activities of persons 
                        subject to subclause (I).
                            ``(IV) Subclause (III) of this clause shall 
                        not apply to--
                                    ``(aa) any person described in any 
                                of item (aa) through (ff) of clause 
                                (i)(II);
                                    ``(bb) any such person's associated 
                                persons; or
                                    ``(cc) any person who would be 
                                exempt from registration if engaging in 
                                the same activities in connection with 
                                transactions conducted on or subject to 
                                the rules of a contract market or a 
                                derivatives transaction execution 
                                facility.
                            ``(v) Notwithstanding items (cc) and (gg) 
                        of clause (i)(II), the Commission may make, 
                        promulgate, and enforce such rules and 
                        regulations as, in the judgment of the 
                        Commission, are reasonably necessary to 
                        effectuate any of the provisions of, or to 
                        accomplish any of the purposes of, this Act in 
                        connection with agreements, contracts, or 
                        transactions described in clause (i) which are 
                        offered, or entered into, by a person described 
                        in item (cc) or (gg) of clause (i)(II).
                    ``(C)(i)(I) This subparagraph shall apply to any 
                agreement, contract, or transaction in foreign currency 
                that is--
                                    ``(aa) offered to, or entered into 
                                with, a person that is not an eligible 
                                contract participant (except that this 
                                subparagraph shall not apply if the 
                                counterparty, or the person offering to 
                                be the counterparty, of the person that 
                                is not an eligible contract participant 
                                is a person described in any of item 
                                (aa), (bb), (dd), (ee), or (ff) of 
                                subparagraph (B)(i)(II)); and
                                    ``(bb) offered, or entered into, on 
                                a leveraged or margined basis, or 
                                financed by the offeror, the 
                                counterparty, or a person acting in 
                                concert with the offeror or 
                                counterparty on a similar basis.
                    ``(II) Subclause (I) of this clause shall not apply 
                to--
                            ``(aa) a security that is not a security 
                        futures product; or
                            ``(bb) a contract of sale that--
                                    ``(AA) results in actual delivery 
                                within 2 days; or
                                    ``(BB) creates an enforceable 
                                obligation to deliver between a seller 
                                and buyer that have the ability to 
                                deliver and accept delivery, 
                                respectively, in connection with their 
                                line of business.
                    ``(ii)(I) Agreements, contracts, or transactions 
                described in clause (i) of this subparagraph shall be 
                subject to subsection (a)(1)(B) of this section and 
                sections 4(b), 4b, 4c(b), 4o, 6(c) and 6(d) (except to 
                the extent that sections 6(c) and 6(d) prohibit 
                manipulation of the market price of any commodity in 
                interstate commerce, or for future delivery on or 
                subject to the rules of any market), 6c, 6d, 8(a), 
                13(a), and 13(b).
                    ``(II) Subclause (I) of this clause shall not apply 
                to--
                            ``(aa) any person described in any of item 
                        (aa), (bb), (dd), (ee), or (ff) of subparagraph 
                        (B)(i)(II); or
                            ``(bb) any such person's associated 
                        persons.
                    ``(III) The Commission may make, promulgate, and 
                enforce such rules and regulations as, in the judgment 
                of the Commission, are reasonably necessary to 
                effectuate any of the provisions of or to accomplish 
                any of the purposes of this Act in connection with 
                agreements, contracts, or transactions described in 
                clause (i) of this subparagraph if the agreements, 
                contracts, or transactions are offered, or entered 
                into, by a person that is not described in item (aa) 
                through (ff) of subparagraph (B)(i)(II).
                    ``(iii)(I) A person, unless registered in such 
                capacity as the Commission by rule, regulation, or 
                order shall determine and a member of a futures 
                association registered under section 17, shall not--
                            ``(aa) solicit or accept orders from any 
                        person that is not an eligible contract 
                        participant in connection with agreements, 
                        contracts, or transactions described in clause 
                        (i) of this subparagraph entered into with or 
                        to be entered into with a person who is not 
                        described in item (aa), (bb), (dd), (ee), or 
                        (ff) of subparagraph (B)(i)(II);
                            ``(bb) exercise discretionary trading 
                        authority or obtain written authorization to 
                        exercise written trading authority over any 
                        account for or on behalf of any person that is 
                        not an eligible contract participant in 
                        connection with agreements, contracts, or 
                        transactions described in clause (i) of this 
                        subparagraph entered into with or to be entered 
                        into with a person who is not described in item 
                        (aa), (bb), (dd), (ee), or (ff) of subparagraph 
                        (B)(i)(II); or
                            ``(cc) operate or solicit funds, 
                        securities, or property for any pooled 
                        investment vehicle that is not an eligible 
                        contract participant in connection with 
                        agreements, contracts, or transactions 
                        described in clause (i) of this subparagraph 
                        entered into with or to be entered into with a 
                        person who is not described in item (aa), (bb), 
                        (dd), (ee), or (ff) of subparagraph (B)(i)(II).
                    ``(II) Subclause (I) of this clause shall not apply 
                to--
                            ``(aa) any person described in item (aa), 
                        (bb), (dd), (ee), or (ff) of subparagraph 
                        (B)(i)(II);
                            ``(bb) any such person's associated 
                        persons; or
                            ``(cc) any person who would be exempt from 
                        registration if engaging in the same activities 
                        in connection with transactions conducted on or 
                        subject to the rules of a contract market or a 
                        derivatives transaction execution facility.
                    ``(III) The Commission may make, promulgate, and 
                enforce such rules and regulations as, in the judgment 
                of the Commission, are reasonably necessary to 
                effectuate any of the provisions of, or to accomplish 
                any of the purposes of, this Act in connection with the 
                activities of persons subject to subclause (I).
                    ``(IV) Subclause (III) of this clause shall not 
                apply to--
                            ``(aa) any person described in item (aa) 
                        through (ff) of subparagraph (B)(i)(II);
                            ``(bb) any such person's associated 
                        persons; or
                            ``(cc) any person who would be exempt from 
                        registration if engaging in the same activities 
                        in connection with transactions conducted on or 
                        subject to the rules of a contract market or a 
                        derivatives transaction execution facility.
                    ``(iv) Sections 4(b) and 4b shall apply to any 
                agreement, contract, or transaction described in clause 
                (i) of this subparagraph as if the agreement, contract, 
                or transaction were a contract of sale of a commodity 
                for future delivery.
                    ``(v) This subparagraph shall not be construed to 
                limit any jurisdiction that the Commission may 
                otherwise have under any other provision of this Act 
                over an agreement, contract, or transaction that is a 
                contract of sale of a commodity for future delivery.
                    ``(vi) This subparagraph shall not be construed to 
                limit any jurisdiction that the Commission or the 
                Securities and Exchange Commission may otherwise have 
                under any other provision of this Act with respect to 
                security futures products and persons effecting 
                transactions in security futures products.''.
    (b) Effective Date.--The following provisions of the Commodity 
Exchange Act, as amended by subsection (a) of this section, shall be 
effective 120 days after the date of the enactment of this Act or at 
such other time as the Commodity Futures Trading Commission shall 
determine:
            (1) Subparagraphs (B)(i)(II)(gg), (B)(iv), and (C)(iii) of 
        section 2(c)(2).
            (2) The provisions of section 2(c)(2)(B)(i)(II)(cc) that 
        set forth adjusted net capital requirements, and the provisions 
        of such section that require a futures commission merchant to 
        be primarily or substantially engaged in certain business 
        activities.

SEC. 13102. ANTI-FRAUD AUTHORITY OVER PRINCIPAL-TO-PRINCIPAL 
              TRANSACTIONS.

    Section 4b of the Commodity Exchange Act (7 U.S.C. Section 6b) is 
amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (2) by striking all through the end of subsection (a) and 
        inserting the following:

``SEC. 4B. CONTRACTS DESIGNED TO DEFRAUD OR MISLEAD.

    ``(a) Unlawful Actions.--It shall be unlawful--
            ``(1) for any person, in or in connection with any order to 
        make, or the making of, any contract of sale of any commodity 
        in interstate commerce or for future delivery that is made, or 
        to be made, on or subject to the rules of a designated contract 
        market, for or on behalf of any other person; or
            ``(2) for any person, in or in connection with any order to 
        make, or the making of, any contract of sale of any commodity 
        for future delivery, or other agreement, contract, or 
        transaction subject to paragraphs (1) and (2) of section 5a(g), 
        that is made, or to be made, for or on behalf of, or with, any 
        other person, other than on or subject to the rules of a 
        designated contract market--
                    ``(A) to cheat or defraud or attempt to cheat or 
                defraud the other person;
                    ``(B) willfully to make or cause to be made to the 
                other person any false report or statement or willfully 
                to enter or cause to be entered for the other person 
                any false record;
                    ``(C) willfully to deceive or attempt to deceive 
                the other person by any means whatsoever in regard to 
                any order or contract or the disposition or execution 
                of any order or contract, or in regard to any act of 
                agency performed, with respect to any order or contract 
                for or, in the case of paragraph (2), with the other 
                person; or
                    ``(D)(i) to bucket an order if the order is either 
                represented by the person as an order to be executed, 
                or is required to be executed, on or subject to the 
                rules of a designated contract market; or
                    ``(ii) to fill an order by offset against the order 
                or orders of any other person, or willfully and 
                knowingly and without the prior consent of the other 
                person to become the buyer in respect to any selling 
                order of the other person, or become the seller in 
                respect to any buying order of the other person, if the 
                order is either represented by the person as an order 
                to be executed, or is required to be executed, on or 
                subject to the rules of a designated contract market 
                unless the order is executed in accordance with the 
                rules of the designated contract market.
    ``(b) Clarification.--Subsection (a)(2) of this section shall not 
obligate any person, in or in connection with a transaction in a 
contract of sale of a commodity for future delivery, or other 
agreement, contract or transaction subject to paragraphs (1) and (2) of 
section 5a(g), with another person, to disclose to the other person 
nonpublic information that may be material to the market price, rate, 
or level of the commodity or transaction, except as necessary to make 
any statement made to the other person in or in connection with the 
transaction not misleading in any material respect.''.

SEC. 13103. CRIMINAL AND CIVIL PENALTIES.

    (a) Enforcement Powers of the Commission.--Section 6(c) of the 
Commodity Exchange Act (7 U.S.C. 9, 15) is amended in clause (3) of the 
10th sentence--
            (1) by inserting ``(A)'' after ``assess such person''; and
            (2) by inserting after ``each such violation'' the 
        following: ``, or (B) in any case of manipulation or attempted 
        manipulation in violation of this subsection, subsection (d) of 
        this section, or section 9(a)(2), a civil penalty of not more 
        than the greater of $1,000,000 or triple the monetary gain to 
        the person for each such violation,''.
    (b) Nonenforcement of Rules of Government or Other Violations.--
Section 6b of such Act (7 U.S.C. 13a) is amended--
            (1) in the first sentence, by inserting before the period 
        at the end the following: ``, or, in any case of manipulation 
        or attempted manipulation in violation of section 6(c), 6(d), 
        or 9(a)(2), a civil penalty of not more than $1,000,000 for 
        each such violation''; and
            (2) in the second sentence, by inserting before the period 
        at the end the following: ``, except that if the failure or 
        refusal to obey or comply with the order involved any offense 
        under section 9(a)(2), the registered entity, director, 
        officer, agent, or employee shall be guilty of a felony and, on 
        conviction, shall be subject to penalties under section 
        9(a)(2)''.
    (c) Action to Enjoin or Restrain Violations.--Section 6c(d) of such 
Act (7 U.S.C. 13a-1(d)) is amended by striking all that precedes 
paragraph (2) and inserting the following:
    ``(d) Civil Penalties.--
            ``(1) In general.--In any action brought under this 
        section, the Commission may seek and the court shall have 
        jurisdiction to impose, on a proper showing, on any person 
        found in the action to have committed any violation--
                    ``(A) a civil penalty in the amount of not more 
                than the greater of $100,000 or triple the monetary 
                gain to the person for each violation; or
                    ``(B) in any case of manipulation or attempted 
                manipulation in violation of section 6(c), 6(d), or 
                9(a)(2), a civil penalty in the amount of not more than 
                the greater of $1,000,000 or triple the monetary gain 
                to the person for each violation.''.
    (d) Violations Generally.--Section 9(a) of such Act (7 U.S.C. 
13(a)) is amended in the matter preceding paragraph (1)--
            (1) by striking ``(or $500,000 in the case of a person who 
        is an individual)''; and
            (2) by striking ``five years'' and inserting ``10 years''.

SEC. 13104. AUTHORIZATION OF APPROPRIATIONS.

    Section 12(d) of the Commodity Exchange Act (7 U.S.C. 16(d)) is 
amended to read as follows:
    ``(d) There are authorized to be appropriated such sums as are 
necessary to carry out this Act for each of the fiscal years 2008 
through 2013.''.

SEC. 13105. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Section 4a(e) of the Commodity Exchange Act (7 U.S.C. 6a(e)) is 
amended--
            (1) by inserting ``or certified by a registered entity 
        pursuant to section 5c(c)(1)'' after ``approved by the 
        Commission'' ; and
            (2) by striking ``section 9(c)'' and inserting ``section 
        9(a)(5)''.
    (b) Section 4f(c)(4)(B)(i) of such Act (7 U.S.C. 6f(c)(4)(B)(i)) is 
amended by striking ``compiled'' and inserting ``complied''.
    (c) Section 4k of such Act (7 U.S.C. 6k) is amended by 
redesignating the second paragraph (5) as paragraph (6).
    (d) The Commodity Exchange Act is amended--
            (1) by redesignating the first section 4p (7 U.S.C. 6o-1), 
        as added by section 121 of the Commodity Futures Modernization 
        Act of 2000, as section 4q; and
            (2) by moving such section to after the second section 4p, 
        as added by section 206 of Public Law 93-446.
    (e) Subsections (a)(1) and (d)(1) of section 5c of such Act (7 
U.S.C. 7a-2(a)(1), (d)(1)) are each amended by striking ``5b(d)(2)'' 
and inserting ``5b(c)(2)''.
    (f) Sections 5c(f) and 17(r) of such Act (7 U.S.C. 7a-2(f), 21(r)) 
are each amended by striking ``4d(3)'' and inserting ``4d(c)''.
    (g) Section 8(a)(1) of such Act (7 U.S.C. 12(a)(1)) is amended in 
the matter following subparagraph (B)--
            (1) by striking ``commenced'' in the 2nd place it appears; 
        and
            (2) by inserting ``commenced'' after ``in a judicial 
        proceeding''.
    (h) Section 9 of such Act (7 U.S.C. 13) is amended--
            (1) in subsection (f)(1), by striking the period and 
        inserting ``; or''; and
            (2) by redesignating subsection (f) as subsection (e).
    (i) Section 22(a)(2) of such Act (7 U.S.C. 25(a)(2)) is amended by 
striking ``5b(b)(1)(E)'' and inserting ``5b(c)(2)(H)''.
    (j) Section 1a(33)(A) of such Act (7 U.S.C. 1a(33)(A)) is amended 
by striking ``transactions'' and all that follows and inserting 
``transactions--
                            ``(i) by accepting bids or offers made by 
                        other participants that are open to multiple 
                        partipants in the facility or system; or
                            ``(ii) through the interaction of multiple 
                        bids or multiple offers within a system with a 
                        pre-determined non-discretionary automated 
                        trade matching and execution algorithm.''.
    (k) Section 14(d) of such Act (7 U.S.C. 18(d)) is amended--
            (1) by inserting ``(1)'' before ``If''; and
            (2) by adding after and below the end the following:
            ``(2) A reparation award shall be directly enforceable in 
        district court as if it were a judgment pursuant to section 
        1963 of title 28, United States Code. This paragraph shall 
        operate retroactively from the effective date of its enactment, 
        and shall apply to all reparation awards for which a proceeding 
        described in paragraph (1) is commenced within 3 years of the 
        date of the Commission's order.''.

SEC. 13106. PORTFOLIO MARGINING AND SECURITY INDEX ISSUES.

    (a) The Secretary of the Treasury, the Chairman of the Board of 
Governors of the Federal Reserve System, the Chairman of the Securities 
and Exchange Commission, and the Chairman of the Commodity Futures 
Trading Commission shall work to ensure that the Securities and 
Exchange Commission (SEC), the Commodity Futures Trading Commission 
(CFTC), or both, as appropriate, have taken the actions required under 
subsection (b).
    (b) The SEC, the CFTC, or both, as appropriate, shall take action 
under their existing authorities to permit--
            (1) by September 30, 2009, risk-based portfolio margining 
        for security options and security futures products (as defined 
        in section 1a(32) of the Commodity Exchange Act); and
            (2) by June 30, 2009, the trading of futures on certain 
        security indexes by resolving issues related to foreign 
        security indexes.

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

SEC. 13201. SIGNIFICANT PRICE DISCOVERY CONTRACTS.

    (a) Definitions.--Section la of the Commodity Exchange Act (7 
U.S.C. la) is amended--
            (1) by redesignating paragraph (33) as paragraph (34); and
            (2) by inserting after paragraph (32) the following:
            ``(33) Significant price discovery contract.--The term 
        `significant price discovery contract' means an agreement, 
        contract, or transaction subject to section 2(h)(7).''.
    (b) Standards Applicable to Significant Price Discovery 
Contracts.--Section 2(h) of such Act (7 U.S.C. 2(h)) is amended by 
adding at the end the following:
            ``(7) Significant price discovery contracts.--
                    ``(A) In general.--An agreement, contract, or 
                transaction conducted in reliance on the exemption in 
                paragraph (3) shall be subject to the provisions of 
                subparagraphs (B) through (D), under such rules and 
                regulations as the Commission shall promulgate, 
                provided that the Commission determines, in its 
                discretion, that the agreement, contract, or 
                transaction performs a significant price discovery 
                function as described in subparagraph (B).
                    ``(B) Significant price discovery determination.--
                In making a determination whether an agreement, 
                contract, or transaction performs a significant price 
                discovery function, the Commission shall consider, as 
                appropriate:
                            ``(i) Price linkage.--The extent to which 
                        the agreement, contract, or transaction uses or 
                        otherwise relies on a daily or final settlement 
                        price, or other major price parameter, of a 
                        contract or contracts listed for trading on or 
                        subject to the rules of a designated contract 
                        market or a derivatives transaction execution 
                        facility, or a significant price discovery 
                        contract traded on an electronic trading 
                        facility, to value a position, transfer or 
                        convert a position, cash or financially settle 
                        a position, or close out a position.
                            ``(ii) Arbitrage.--The extent to which the 
                        price for the agreement, contract, or 
                        transaction is sufficiently related to the 
                        price of a contract or contracts listed for 
                        trading on or subject to the rules of a 
                        designated contract market or derivatives 
                        transaction execution facility, or a 
                        significant price discovery contract or 
                        contracts trading on or subject to the rules of 
                        an electronic trading facility, so as to permit 
                        market participants to effectively arbitrage 
                        between the markets by simultaneously 
                        maintaining positions or executing trades in 
                        the contracts on a frequent and recurring 
                        basis.
                            ``(iii) Material price reference.--The 
                        extent to which, on a frequent and recurring 
                        basis, bids, offers, or transactions in a 
                        commodity are directly based on, or are 
                        determined by referencing, the prices generated 
                        by agreements, contracts, or transactions being 
                        traded or executed on the electronic trading 
                        facility.
                            ``(iv) Material liquidity.--The extent to 
                        which the volume of agreements, contracts, or 
                        transactions in the commodity being traded on 
                        the electronic trading facility is sufficient 
                        to have a material effect on other agreements, 
                        contracts, or transactions listed for trading 
                        on or subject to the rules of a designated 
                        contract market, a derivatives transaction 
                        execution facility, or an electronic trading 
                        facility operating in reliance on the exemption 
                        in paragraph (3).
                            ``(v) Other material factors.--Such other 
                        material factors as the Commission specifies by 
                        rule as relevant to determine whether an 
                        agreement, contract, or transaction serves a 
                        significant price discovery function.
                    ``(C) Core principles applicable to significant 
                price discovery contracts.--
                            ``(i) In general.--An electronic trading 
                        facility on which significant price discovery 
                        contracts are traded or executed shall, with 
                        respect to those contracts, comply with the 
                        core principles specified in this subparagraph.
                            ``(ii) Core principles.--The electronic 
                        trading facility shall have reasonable 
                        discretion (including discretion to account for 
                        differences between cleared and uncleared 
                        significant price discovery contracts) in 
                        establishing the manner in which it complies 
                        with the following core principles:
                                    ``(I) Contracts not readily 
                                susceptible to manipulation.--The 
                                electronic trading facility shall list 
                                only significant price discovery 
                                contracts that are not readily 
                                susceptible to manipulation.
                                    ``(II) Monitoring of trading.--The 
                                electronic trading facility shall 
                                monitor trading in significant price 
                                discovery contracts to prevent market 
                                manipulation, price distortion, and 
                                disruptions of the delivery or cash-
                                settlement process through market 
                                surveillance, compliance, and 
                                disciplinary practices and procedures, 
                                including methods for conducting real-
                                time monitoring of trading and 
                                comprehensive and accurate trade 
                                reconstructions.
                                    ``(III) Ability to obtain 
                                information.--The electronic trading 
                                facility shall--
                                            ``(aa) establish and 
                                        enforce rules that will allow 
                                        the electronic trading facility 
                                        to obtain any necessary 
                                        information to perform any of 
                                        the functions described in this 
                                        subparagraph;
                                            ``(bb) provide the 
                                        information to the Commission 
                                        upon request; and
                                            ``(cc) have the capacity to 
                                        carry out such international 
                                        information-sharing agreements 
                                        as the Commission may require.
                                    ``(IV) Position limitations or 
                                accountability.--The electronic trading 
                                facility shall adopt, where necessary 
                                and appropriate, position limitations 
                                or position accountability for 
                                speculators in significant price 
                                discovery contracts, taking into 
                                account positions in other agreements, 
                                contracts, and transactions that are 
                                treated by a derivatives clearing 
                                organization, whether registered or not 
                                registered, as fungible with such 
                                significant price discovery contracts 
                                to reduce the potential threat of 
                                market manipulation or congestion, 
                                especially during trading in the 
                                delivery month.
                                    ``(V) Emergency authority.--The 
                                electronic trading facility shall adopt 
                                rules to provide for the exercise of 
                                emergency authority, in consultation or 
                                cooperation with the Commission, where 
                                necessary and appropriate, including 
                                the authority--
                                            ``(aa) to liquidate open 
                                        positions in a significant 
                                        price discovery contract; and
                                            ``(bb) to suspend or 
                                        curtail trading in a 
                                        significant price discovery 
                                        contract.
                                    ``(VI) Daily publication of trading 
                                information.--The electronic trading 
                                facility shall make public daily 
                                information on price, trading volume, 
                                and other trading data to the extent 
                                appropriate for significant price 
                                discovery contracts
                                    ``(VII) Compliance with rules.--The 
                                electronic trading facility shall 
                                monitor and enforce compliance with any 
                                rules of the electronic trading 
                                facility applicable to significant 
                                price discovery contracts, including 
                                the terms and conditions of the 
                                contracts and any limitations on access 
                                to the electronic trading facility with 
                                respect to the contracts.
                                    ``(VIII) Conflict of interest.--The 
                                electronic trading facility, with 
                                respect to significant price discovery 
                                contracts, shall--
                                            ``(aa) establish and 
                                        enforce rules to minimize 
                                        conflicts of interest in its 
                                        decision-making process; and
                                            ``(bb) establish a process 
                                        for resolving the conflicts of 
                                        interest.
                                    ``(IX) Antitrust considerations.--
                                Unless necessary or appropriate to 
                                achieve the purposes of this Act, the 
                                electronic trading facility, with 
                                respect to significant price discovery 
                                contracts, shall endeavor to avoid--
                                            ``(aa) adopting any rules 
                                        or taking any actions that 
                                        result in any unreasonable 
                                        restraints of trade; or
                                            ``(bb) imposing any 
                                        material anticompetitive burden 
                                        on trading on the electronic 
                                        trading facility.
                    ``(D) Implementation.--
                            ``(i) Clearing.--The Commission shall take 
                        into consideration differences between cleared 
                        and uncleared significant price discovery 
                        contracts when reviewing the implementation of 
                        the core principles by an electronic trading 
                        facility.
                            ``(ii) Review.--As part of the Commission's 
                        continual monitoring and surveillance 
                        activities, the Commission shall, not less 
                        frequently than annually, evaluate, as 
                        appropriate, all the agreements, contracts, or 
                        transactions conducted on an electronic trading 
                        facility in reliance on the exemption provided 
                        in paragraph (3) to determine whether they 
                        serve a significant price discovery function as 
                        described in subparagraph (B) of this 
                        paragraph.''.

SEC. 13202. LARGE TRADER REPORTING.

    (a) Reporting and Recordkeeping.--Section 4g(a) of the Commodity 
Exchange Act (7 U.S.C. 6g(a)) is amended by inserting ``, and in any 
significant price discovery contract traded or executed on an 
electronic trading facility or any agreement, contract, or transaction 
that is treated by a derivatives clearing organization, whether 
registered or not registered, as fungible with a significant price 
discovery contract'' after ``elsewhere''.
    (b) Reports of Positions Equal to or in Excess of Trading Limits.--
Section 4i of such Act (7 U.S.C. 6i) is amended--
            (1) by inserting ``, or any significant price discovery 
        contract traded or executed on an electronic trading facility 
        or any agreement, contract, or transaction that is treated by a 
        derivatives clearing organization, whether registered or not 
        registered, as fungible with a significant price discovery 
        contract'' after ``subject to the rules of any contract market 
        or derivatives transaction execution facility''; and
            (2) in the matter following paragraph (2), by inserting 
        ``or electronic trading facility'' after ``subject to the rules 
        of any other board of trade''.

SEC. 13203. CONFORMING AMENDMENTS.

    (a) Section 1a(12)(A)(x) of the Commodity Exchange Act (7 U.S.C. 
1a(12)(A)(x)) is amended by inserting ``(other than an electronic 
trading facility with respect to a significant price discovery 
contract)'' after ``registered entity''.
    (b) Section 1a(29) of such Act (7 U.S.C. 1a(29)) is amended--
            (1) in subparagraph (C), by striking ``and'' at the end;
            (2) in subparagraph (D), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(E) with respect to a contract that the 
                Commission determines is a significant price discovery 
                contract, any electronic trading facility on which the 
                contract is executed or traded.''.
    (c) Section 2(a)(1)(A) of such Act (7 U.S.C. 2(a)(1)(A)) is amended 
by inserting after ``future delivery'' the following: ``(including 
significant price discovery contracts)''.
    (d) Section 2(h)(3) of such Act (7 U.S.C. 2(h)(3)) is amended by 
striking ``paragraph (4)'' and inserting ``paragraphs (4) and (7)''.
    (e) Section 2(h)(4) of such Act (7 U.S.C. 2(h)(4)) is amended--
            (1) in subparagraph (B), by inserting ``and, for a 
        significant price discovery contract, requiring large trader 
        reporting,'' after ``proscribing fraud'';
            (2) by striking ``and'' at the end of subparagraph (C); and
            (3) by striking subparagraph (D) and inserting the 
        following:
                    ``(D) such rules, regulations, and orders as the 
                Commission may issue to ensure timely compliance with 
                any of the provisions of this Act applicable to a 
                significant price discovery contract traded on or 
                executed on any electronic trading facility; and
                    ``(E) such other provisions of this Act as are 
                applicable by their terms to significant price 
                discovery contracts or to registered entities or 
                electronic trading facilities with respect to 
                significant price discovery contracts.''.
    (f) Section 2(h)(5)(B)(iii)(I) of such Act (7 U.S.C. 
2(h)(5)(B)(iii)(I)) is amended by inserting ``or to make the 
determination described in subparagraph (B) of paragraph (7)'' after 
``paragraph (4)''.
    (g) Section 4a of such Act (7 U.S.C. 6a) is amended--
            (1) in subsection (a)--
                    (A) in the first sentence, by inserting ``, or on 
                electronic trading facilities with respect to a 
                significant price discovery contract'' after 
                ``derivatives transaction execution facilities''; and
                    (B) in the second sentence, by inserting ``, or on 
                an electronic trading facility with respect to a 
                significant price discovery contract,'' after 
                ``derivatives transaction execution facility''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by inserting ``or electronic 
                trading facility with respect to a significant price 
                discovery contract'' after ``facility or facilities''; 
                and
                    (B) in paragraph (2), by inserting ``or electronic 
                trading facility with respect to a significant price 
                discovery contract'' after ``derivatives transaction 
                execution facility''; and
            (3) in subsection (e)--
                    (A) in the first sentence--
                            (i) by inserting ``or by any electronic 
                        trading facility'' after ``registered by the 
                        Commission'';
                            (ii) by inserting ``or on an electronic 
                        trading facility'' after ``derivatives 
                        transaction execution facility'' the second 
                        place it appears; and
                            (iii) by inserting ``or electronic trading 
                        facility'' before ``or such board of trade'' 
                        each place it appears; and
                    (B) in the second sentence, by inserting ``or 
                electronic trading facility with respect to a 
                significant price discovery contract'' after 
                ``registered by the Commission''.
    (h) Section 5a(d) of such Act (7 U.S.C. 7a(d)(1)) is amended--
            (1) by redesignating paragraphs (4) through (9) as 
        paragraphs (5) through (10); and
            (2) by inserting after paragraph (3) the following:
            ``(4) Position limitations or accountability.--To reduce 
        the potential threat of market manipulation or congestion, 
        especially during trading in the delivery month, the 
        derivatives transaction execution facility shall adopt position 
        limits or position accountability for speculators, where 
        necessary and appropriate for a contract, agreement or 
        transaction with an underlying commodity that has a physically 
        deliverable supply.''.
    (i) Section 5c(a) of such Act (7 U.S.C. 7a-2(a)) is amended in 
paragraph (1) by inserting ``, and section 2(h)(7) with respect to 
significant price discovery contracts,'' after ``, and 5b(d)(2)''.
    (j) Section 5c(b) of such Act (7 U.S.C. 7a-2(b)) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) In general.--A contract market, derivatives 
        transaction execution facility, or electronic trading facility 
        with respect to a significant price discovery contract may 
        comply with any applicable core principle through delegation of 
        any relevant function to a registered futures association or a 
        registered entity that is not an electronic trading 
        facility.'';
            (2) in paragraph (2), by striking ``contract market or 
        derivatives transaction execution facility'' and inserting 
        ``contract market, derivatives transaction execution facility, 
        or electronic trading facility''; and
            (3) in paragraph (3), by striking ``contract market or 
        derivatives transaction execution facility'' each place it 
        appears and inserting ``contract market, derivatives 
        transaction execution facility, or electronic trading 
        facility''.
    (k) Section 5c(d)(1) of such Act (7 U.S.C. 7a-2(d)(1)) is amended 
by inserting ``or 2(h)(7)(C) with respect to a significant price 
discovery contract traded or executed on an electronic trading 
facility,'' after ``5b(d)(2)''.
    (l) Section 5e of such Act (7 U.S.C. 7b) is amended by inserting 
``, or revocation of the right of an electronic trading facility to 
rely on the exemption set forth in section 2(h)(3) with respect to a 
significant price discovery contract,'' after ``revocation of 
designation as a registered entity''.
    (m) Section 6(b) of the Commodity Exchange Act (7 U.S.C. 8(b)) is 
amended by striking the first sentence and all that follows through 
``hearing on the record: Provided,'' and inserting the following:
    ``The Commission is authorized to suspend for a period not to 
exceed 6 months or to revoke the designation or registration of any 
contract market or derivatives transaction execution facility, or to 
revoke the right of an electronic trading facility to rely on the 
exemption set forth in section 2(h)(3) with respect to a significant 
price discovery contract, on a showing that the contract market or 
derivatives transaction execution facility is not enforcing or has not 
enforced its rules of government, made a condition of its designation 
or registration as set forth in sections 5 through 5b or section 5f, or 
that the contract market or derivatives transaction execution facility 
or electronic trading facility, or any director, officer, agent, or 
employee thereof, otherwise is violating or has violated any of the 
provisions of this Act or any of the rules, regulations, or orders of 
the Commission thereunder. Such suspension or revocation shall only be 
made after a notice to the officers of the contract market or 
derivatives transaction execution facility or electronic trading 
facility affected and upon a hearing on the record: Provided,''.
    (n) Section 22(b)(1) of such Act (7 U.S.C. 25(b)(1)) is amended by 
inserting ``section 2(h)(7) or'' before ``sections 5''.

SEC. 13204. EFFECTIVE DATE.

    (a) In General.--Except as provided in this section, this subtitle 
shall become effective on the date of enactment of this Act.
    (b) Significant Price Discovery Standards Rulemaking.--
            (1) The Commodity Futures Trading Commission shall--
                    (A) not later than 180 days after the date of the 
                enactment of this Act, issue a proposed rule regarding 
                the implementation of section 2(h)(7) of the Commodity 
                Exchange Act; and
                    (B) not later than 270 days after the date of 
                enactment of this Act, issue a final rule regarding the 
                implementation.
            (2) In its rulemaking pursuant to paragraph (1) of this 
        subsection, the Commission shall include the standards, terms, 
        and conditions under which an electronic trading facility will 
        have the responsibility to notify the Commission that an 
        agreement, contract, or transaction conducted in reliance on 
        the exemption provided in section 2(h)(3) of the Commodity 
        Exchange Act may perform a price discovery function.
    (c) Significant Price Discovery Determinations.--With respect to 
any electronic trading facility operating on the effective date of the 
final rule issued pursuant to subsection (b)(1), the Commission shall 
complete a review of the agreements, contracts, and transactions of the 
facility not later than 180 days after that effective date to determine 
whether any such agreement, contract, or transaction performs a 
significant price discovery function.

                        TITLE XIV--MISCELLANEOUS

   Subtitle A--Socially Disadvantaged Producers and Limited Resource 
                               Producers

SEC. 14001. IMPROVED PROGRAM DELIVERY BY DEPARTMENT OF AGRICULTURE ON 
              INDIAN RESERVATIONS.

    Section 2501(g)(1) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 2279(g)(1)) is amended--
            (1) in the first sentence--
                    (A) by striking ``Agricultural Stabilization and 
                Conservation Service, Soil Conservation Service, and 
                Farmers Home Administration offices'' and inserting 
                ``Farm Service Agency and Natural Resources 
                Conservation Service''; and
                    (B) by inserting ``where there has been a need 
                demonstrated'' after ``include''; and
            (2) by striking the second sentence.

SEC. 14002. FORECLOSURE.

    (a) In General.--Section 331A of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1981a) is amended:
            (1) by inserting ``(a)'' after ``Sec. 331A.''; and
            (2) by adding at the end the following:
    ``(b) Moratorium.--
            ``(1) In general.--Subject to the other provisions of this 
        subsection, effective beginning on the date of the enactment of 
        this subsection, there shall be in effect a moratorium, with 
        respect to farmer program loans made under subtitle A, B, or C, 
        on all acceleration and foreclosure proceedings instituted by 
        the Department of Agriculture against any farmer or rancher 
        who--
                    ``(A) has pending against the Department a claim of 
                program discrimination that is accepted by the 
                Department as valid; or
                    ``(B) files a claim of program discrimination that 
                is accepted by the Department as valid.
            ``(2) Waiver of interest and offsets.--During the period of 
        the moratorium, the Secretary shall waive the accrual of 
        interest and offsets on all farmer program loans made under 
        subtitle A, B, or C for which loan acceleration or foreclosure 
        proceedings have been suspended under paragraph (1).
            ``(3) Termination of moratorium.--The moratorium shall 
        terminate with respect to a claim of discrimination by a farmer 
        or rancher on the earlier of--
                    ``(A) the date the Secretary resolves the claim; or
                    ``(B) if the farmer or rancher appeals the decision 
                of the Secretary on the claim to a court of competent 
                jurisdiction, the date that the court renders a final 
                decision on the claim.
            ``(4) Failure to prevail.--If a farmer or rancher does not 
        prevail on a claim of discrimination described in paragraph 
        (1), the farmer or rancher shall be liable for any interest and 
        offsets that accrued during the period that loan acceleration 
        or foreclosure proceedings have been suspended under paragraph 
        (1).''.
    (b) Foreclosure Report.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, the Inspector General of the 
        Department of Agriculture (referred to in this subsection as 
        the ``Inspector General'') shall determine whether decisions of 
        the Department to implement foreclosure proceedings with 
        respect to farmer program loans made under subtitle A, B, or C 
        of the Consolidated Farm and Rural Development Act (7 U.S.C. 
        1922 et seq.) to socially disadvantaged farmers or ranchers 
        during the 5-year period preceding the date of the enactment of 
        this Act were consistent and in conformity with the applicable 
        laws (including regulations) governing loan foreclosures.
            (2) Report.--Not later than 1 year after the date of the 
        enactment of this Act, the Inspector General shall submit to 
        the Committee on Agriculture of the House of Representatives 
        and the Committee on Agriculture, Nutrition, and Forestry of 
        the Senate a report that describes the determination of the 
        Inspector General under paragraph (1).

SEC. 14003. RECEIPT FOR SERVICE OR DENIAL OF SERVICE FROM CERTAIN 
              DEPARTMENT OF AGRICULTURE AGENCIES.

    Section 2501A of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 2279-1) is amended by adding at the end the following 
new subsection:
    ``(e) Receipt for Service or Denial of Service.--In any case in 
which a current or prospective producer or landowner, in person or in 
writing, requests from the Farm Service Agency, the Natural Resources 
Conservation Service, or an agency of the Rural Development Mission 
Area any benefit or service offered by the Department to agricultural 
producers or landowners and, at the time of the request, also requests 
a receipt, the Secretary shall issue, on the date of the request, a 
receipt to the producer or landowner that contains--
            ``(1) the date, place, and subject of the request; and
            ``(2) the action taken, not taken, or recommended to the 
        producer or landowner.''.

SEC. 14004. OUTREACH AND TECHNICAL ASSISTANCE FOR SOCIALLY 
              DISADVANTAGED FARMERS OR RANCHERS.

    (a) Outreach and Technical Assistance Program.--
            (1) Program requirements.--Paragraph (2) of section 2501(a) 
        of the Food, Agriculture, Conservation, and Trade Act of 1990 
        (7 U.S.C. 2279(a)) is amended to read as follows:
            ``(2) Requirements.--The outreach and technical assistance 
        program under paragraph (1) shall be used exclusively--
                    ``(A) to enhance coordination of the outreach, 
                technical assistance, and education efforts authorized 
                under agriculture programs; and
                    ``(B) to assist the Secretary in--
                            ``(i) reaching current and prospective 
                        socially disadvantaged farmers or ranchers in a 
                        linguistically appropriate manner; and
                            ``(ii) improving the participation of those 
                        farmers and ranchers in Department programs, as 
                        reported under section 2501A.''.
            (2) Grants and contracts under program.--Section 2501(a)(3) 
        of the Food, Agriculture, Conservation, and Trade Act of 1990 
        (7 U.S.C. 2279(a)(3)) is amended--
                    (A) in subparagraph (A), by striking ``entity to 
                provide information'' and inserting ``entity that has 
                demonstrated an ability to carry out the requirements 
                described in paragraph (2) to provide outreach''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(D) Report.--The Secretary shall submit to the 
                Committee on Agriculture of the House of 
                Representatives and the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate, and make 
                publicly available, an annual report that includes a 
                list of the following:
                            ``(i) The recipients of funds made 
                        available under the program.
                            ``(ii) The activities undertaken and 
                        services provided.
                            ``(iii) The number of current and 
                        prospective socially disadvantaged farmers or 
                        ranchers served and outcomes of such service.
                            ``(iv) The problems and barriers identified 
                        by entities in trying to increase participation 
                        by current and prospective socially 
                        disadvantaged farmers or ranchers.''.
            (3) Funding and limitation on use of funds.--Section 
        2501(a)(4) of the Food, Agriculture, Conservation, and Trade 
        Act of 1990 (7 U.S.C. 2279(a)(4)) is amended--
                    (A) by striking subparagraph (A) and inserting the 
                following new subparagraph:
                    ``(A) In general.--Of the funds of the Commodity 
                Credit Corporation, the Secretary shall make available 
                to carry out this section--
                            ``(i) $15,000,000 for fiscal year 2009; and
                            ``(ii) $20,000,000 for each of fiscal years 
                        2010 through 2012.''.
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(C) Limitation on use of funds for administrative 
                expenses.--Not more than 5 percent of the amounts made 
                available under subparagraph (A) for a fiscal year may 
                be used for expenses related to administering the 
                program under this section.''.
    (b) Eligible Entity Defined.--Section 2501(e)(5)(A)(ii) of the 
Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
2279(e)(5)(A)(ii)) is amended by striking ``work with socially 
disadvantaged farmers or ranchers during the 2-year period'' and 
inserting ``work with, and on behalf of, socially disadvantaged farmers 
or ranchers during the 3-year period''.

SEC. 14005. ACCURATE DOCUMENTATION IN THE CENSUS OF AGRICULTURE AND 
              CERTAIN STUDIES.

    Section 2501 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 2279) is amended by adding at the end the following:
    ``(h) Accurate Documentation.--The Secretary shall ensure, to the 
maximum extent practicable, that the Census of Agriculture and studies 
carried out by the Economic Research Service accurately document the 
number, location, and economic contributions of socially disadvantaged 
farmers or ranchers in agricultural production.''.

SEC. 14006. TRANSPARENCY AND ACCOUNTABILITY FOR SOCIALLY DISADVANTAGED 
              FARMERS OR RANCHERS.

    Section 2501A of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 2279-1) is amended by striking subsection (c) and 
inserting the following new subsections:
    ``(c) Compilation of Program Participation Data.--
            ``(1) Annual requirement.--For each county and State in the 
        United States, the Secretary of Agriculture (referred to in 
        this section as the `Secretary') shall annually compile program 
        application and participation rate data regarding socially 
        disadvantaged farmers or ranchers by computing for each program 
        of the Department of Agriculture that serves agricultural 
        producers and landowners--
                    ``(A) raw numbers of applicants and participants by 
                race, ethnicity, and gender, subject to appropriate 
                privacy protections, as determined by the Secretary; 
                and
                    ``(B) the application and participation rate, by 
                race, ethnicity, and gender, as a percentage of the 
                total participation rate of all agricultural producers 
                and landowners.
            ``(2) Authority to collect data.--The heads of the agencies 
        of the Department of Agriculture shall collect and transmit to 
        the Secretary any data, including data on race, gender, and 
        ethnicity, that the Secretary determines to be necessary to 
        carry out paragraph (1).
            ``(3) Report.--Using the technologies and systems of the 
        National Agricultural Statistics Service, the Secretary shall 
        compile and present the data compiled under paragraph (1) for 
        each program described in that paragraph in a manner that 
        includes the raw numbers and participation rates for--
                    ``(A) the entire United States;
                    ``(B) each State; and
                    ``(C) each county in each State.
            ``(4) Public availability of report.--The Secretary shall 
        maintain and make readily available to the public, via website 
        and otherwise in electronic and paper form, the report 
        described in paragraph (3).
    ``(d) Limitations on Use of Data.--
            ``(1) Privacy protections.--In carrying out this section, 
        the Secretary shall not disclose the names or individual data 
        of any program participant.
            ``(2) Authorized uses.--The data under this section shall 
        be used exclusively for the purposes described in subsection 
        (a).
            ``(3) Limitation.--Except as otherwise provided, the data 
        under this section shall not be used for the evaluation of 
        individual applications for assistance.''.

SEC. 14007. OVERSIGHT AND COMPLIANCE.

    The Secretary, acting through the Assistant Secretary for Civil 
Rights of the Department of Agriculture, shall use the reports 
described in subsection (c) of section 2501A of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 2279-1), as amended by 
section 14006, in the conduct of oversight and evaluation of civil 
rights compliance.

SEC. 14008. MINORITY FARMER ADVISORY COMMITTEE.

    (a) Establishment.--Not later than 18 months after the date of the 
enactment of this Act, the Secretary of Agriculture shall establish an 
advisory committee, to be known as the ``Advisory Committee on Minority 
Farmers'' (in this section referred to as the ``Committee'').
    (b) Duties.--The Committee shall provide advice to the Secretary 
on--
            (1) the implementation of section 2501 of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
        2279);
            (2) methods of maximizing the participation of minority 
        farmers and ranchers in Department of Agriculture programs; and
            (3) civil rights activities within the Department as such 
        activities relate to participants in such programs.
    (c) Membership.--
            (1) In general.--The Committee shall be composed of not 
        more than 15 members, who shall be appointed by the Secretary, 
        and shall include--
                    (A) not less than four socially disadvantaged 
                farmers or ranchers (as defined in section 2501(e)(2) 
                of the Food, Agriculture, Conservation, and Trade Act 
                of 1990 (7 U.S.C. 2279(e)(2)));
                    (B) not less than two representatives of nonprofit 
                organizations with a history of working with minority 
                farmers and ranchers;
                    (C) not less than two civil rights professionals;
                    (D) not less than two representatives of 
                institutions of higher education with demonstrated 
                experience working with minority farmers and ranchers; 
                and
                    (E) such other persons as the Secretary considers 
                appropriate.
            (2) Ex-officio members.--The Secretary may appoint such 
        employees of the Department of Agriculture as the Secretary 
        considers appropriate to serve as ex-officio members of the 
        Committee.

SEC. 14009. NATIONAL APPEALS DIVISION.

    Section 280 of the Department of Agriculture Reorganization Act of 
1994 (7 U.S.C. 7000) is amended--
            (1) by striking ``On the return'' and inserting the 
        following:
    ``(a) In General.--On the return''; and
            (2) by adding at the end the following:
    ``(b) Reports.--
            ``(1) In general.--Not later than 180 days after the date 
        of the enactment of this subsection, and every 180 days 
        thereafter, the head of each agency shall submit to the 
        Committee on Agriculture of the House of Representatives and 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate, and publish on the website of the Department, a report 
        that includes--
                    ``(A) a description of all cases returned to the 
                agency during the period covered by the report pursuant 
                to a final determination of the Division;
                    ``(B) the status of implementation of each final 
                determination; and
                    ``(C) if the final determination has not been 
                implemented--
                            ``(i) the reason that the final 
                        determination has not been implemented; and
                            ``(ii) the projected date of implementation 
                        of the final determination.
            ``(2) Updates.--Each month, the head of each agency shall 
        publish on the website of the Department any updates to the 
        reports submitted under paragraph (1).''.

SEC. 14010. REPORT OF CIVIL RIGHTS COMPLAINTS, RESOLUTIONS, AND 
              ACTIONS.

    Each year, the Secretary shall--
            (1) prepare a report that describes, for each agency of the 
        Department of Agriculture--
                    (A) the number of civil rights complaints filed 
                that relate to the agency, including whether a 
                complaint is a program complaint or an employment 
                complaint;
                    (B) the length of time the agency took to process 
                each civil rights complaint;
                    (C) the number of proceedings brought against the 
                agency, including the number of complaints described in 
                paragraph (1) that were resolved with a finding of 
                discrimination; and
                    (D) the number and type of personnel actions taken 
                by the agency following resolution of civil rights 
                complaints;
            (2) submit to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate a copy of the report; and
            (3) make the report available to the public by posting the 
        report on the website of the Department.

SEC. 14011. SENSE OF CONGRESS RELATING TO CLAIMS BROUGHT BY SOCIALLY 
              DISADVANTAGED FARMERS OR RANCHERS.

    It is the sense of Congress that all pending claims and class 
actions brought against the Department of Agriculture by socially 
disadvantaged farmers or ranchers (as defined in section 355(e) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e)), 
including Native American, Hispanic, and female farmers or ranchers, 
based on racial, ethnic, or gender discrimination in farm program 
participation should be resolved in an expeditious and just manner.

SEC. 14012. DETERMINATION ON MERITS OF PIGFORD CLAIMS.

    (a) Definitions.--In this section:
            (1) Consent decree.--The term ``consent decree'' means the 
        consent decree in the case of Pigford v. Glickman, approved by 
        the United States District Court for the District of Columbia 
        on April 14, 1999.
            (2) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (3) Pigford claim.--The term ``Pigford claim'' means a 
        discrimination complaint, as defined by section 1(h) of the 
        consent decree and documented under section 5(b) of the consent 
        decree.
            (4) Pigford claimant.--The term ``Pigford claimant'' means 
        an individual who previously submitted a late-filing request 
        under section 5(g) of the consent decree.
    (b) Determination on Merits.--Any Pigford claimant who has not 
previously obtained a determination on the merits of a Pigford claim 
may, in a civil action brought in the United States District Court for 
the District of Columbia, obtain that determination.
    (c) Limitation.--
            (1) In general.--Subject to paragraph (2), all payments or 
        debt relief (including any limitation on foreclosure under 
        subsection (h)) shall be made exclusively from funds made 
        available under subsection (i).
            (2) Maximum amount.--The total amount of payments and debt 
        relief pursuant to actions commenced under subsection (b) shall 
        not exceed $100,000,000.
    (d) Intent of Congress as to Remedial Nature of Section.--It is the 
intent of Congress that this section be liberally construed so as to 
effectuate its remedial purpose of giving a full determination on the 
merits for each Pigford claim previously denied that determination.
    (e) Loan Data.--
            (1) Report to person submitting petition.--
                    (A) In general.--Not later than 120 days after the 
                Secretary receives notice of a complaint filed by a 
                claimant under subsection (b), the Secretary shall 
                provide to the claimant a report on farm credit loans 
                and noncredit benefits, as appropriate, made within the 
                claimant's county (or if no documents are found, within 
                an adjacent county as determined by the claimant), by 
                the Department during the period beginning on January 1 
                of the year preceding the period covered by the 
                complaint and ending on December 31 of the year 
                following the period.
                    (B) Requirements.--A report under subparagraph (A) 
                shall contain information on all persons whose 
                application for a loan or benefit was accepted, 
                including--
                            (i) the race of the applicant;
                            (ii) the date of application;
                            (iii) the date of the loan or benefit 
                        decision, as appropriate;
                            (iv) the location of the office making the 
                        loan or benefit decision, as appropriate;
                            (v) all data relevant to the decisionmaking 
                        process for the loan or benefit, as 
                        appropriate; and
                            (vi) all data relevant to the servicing of 
                        the loan or benefit, as appropriate.
            (2) No personally identifiable information.--The reports 
        provided pursuant to paragraph (1) shall not contain any 
        information that would identify any person who applied for a 
        loan from the Department.
            (3) Reporting deadline.--
                    (A) In general.--The Secretary shall--
                            (i) provide to claimants the reports 
                        required under paragraph (1) as quickly as 
                        practicable after the Secretary receives notice 
                        of a complaint filed by a claimant under 
                        subsection (b); and
                            (ii) devote such resources of the 
                        Department as are necessary to make providing 
                        the reports expeditiously a high priority of 
                        the Department.
                    (B) Extension.--A court may extend the deadline for 
                providing the report required in a particular case 
                under paragraph (1) if the Secretary establishes that 
                meeting the deadline is not feasible and demonstrates a 
                continuing effort and commitment to provide the 
                required report expeditiously.
    (f) Expedited Resolutions Authorized.--
            (1) In general.--Any person filing a complaint under this 
        section for discrimination in the application for, or making or 
        servicing of, a farm loan, at the discretion of the person, may 
        seek liquidated damages of $50,000, discharge of the debt that 
        was incurred under, or affected by, the 1 or more programs that 
        were the subject of the 1 or more discrimination claims that 
        are the subject of the person's complaint, and a tax payment in 
        the amount equal to 25 percent of the liquidated damages and 
        loan principal discharged, in which case--
                    (A) if only such damages, debt discharge, and tax 
                payment are sought, the complainant shall be able to 
                prove the case of the complainant by substantial 
                evidence (as defined in section 1(l) of the consent 
                decree); and
                    (B) the court shall decide the case based on a 
                review of documents submitted by the complainant and 
                defendant relevant to the issues of liability and 
                damages.
            (2) Noncredit claims.--
                    (A) Standard.--In any case in which a claimant 
                asserts a noncredit claim under a benefit program of 
                the Department, the court shall determine the merits of 
                the claim in accordance with section 9(b)(i) of the 
                consent decree.
                    (B) Relief.--A claimant who prevails on a claim of 
                discrimination involving a noncredit benefit program of 
                the Department shall be entitled to a payment by the 
                Department in a total amount of $3,000, without regard 
                to the number of such claims on which the claimant 
                prevails.
    (g) Actual Damages.--A claimant who files a claim under this 
section for discrimination under subsection (b) but not under 
subsection (f) and who prevails on the claim shall be entitled to 
actual damages sustained by the claimant.
    (h) Limitation on Foreclosures.--Notwithstanding any other 
provision of law, during the pendency of a Pigford claim, the Secretary 
may not begin acceleration on or foreclosure of a loan if--
            (1) the borrower is a Pigford claimant; and
            (2) makes a prima facie case in an appropriate 
        administrative proceeding that the acceleration or foreclosure 
        is related to a Pigford claim.
    (i) Funding.--
            (1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall make available for payments 
        and debt relief in satisfaction of claims against the United 
        States under subsection (b) and for any actions under 
        subsection (g) $100,000,000 for fiscal year 2008, to remain 
        available until expended.
            (2) Authorization of appropriations.--In addition to funds 
        made available under paragraph (1), there are authorized to be 
        appropriated such sums as are necessary to carry out this 
        section.
    (j) Reporting Requirements.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act and every 180 days thereafter until 
        the funds made available under subsection (i) are depleted, the 
        Secretary shall submit to the Committee on the Judiciary of the 
        House of Representatives and the Committee on the Judiciary of 
        the Senate a report that describes the status of available 
        funds under subsection (i) and the number of pending claims 
        under subsection (f).
            (2) Depletion of funds report.--In addition to the reports 
        required under paragraph (1), the Secretary shall submit to the 
        Committee on the Judiciary of the House of Representatives and 
        the Committee on the Judiciary of the Senate a report that 
        notifies the Committees when 75 percent of the funds made 
        available under subsection (i)(1) have been depleted.
    (k) Termination of Authority.--The authority to file a claim under 
this section terminates 2 years after the date of the enactment of this 
Act.

SEC. 14013. OFFICE OF ADVOCACY AND OUTREACH.

    (a) In General.--The Department of Agriculture Reorganization Act 
of 1994 is amended by inserting after section 226A (7 U.S.C. 6933) the 
following:

``SEC. 226B. OFFICE OF ADVOCACY AND OUTREACH.

    ``(a) Definitions.--In this section:
            ``(1) Beginning farmer or rancher.--The term `beginning 
        farmer or rancher' has the meaning given the term in section 
        343(a) of the Consolidated Farm and Rural Development Act (7 
        U.S.C. 1991(a)).
            ``(2) Office.--The term `Office' means the Office of 
        Advocacy and Outreach established under this section.
            ``(3) Socially disadvantaged farmer or rancher.--The term 
        `socially disadvantaged farmer or rancher' has the meaning 
        given the term in section 2501(e) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)).
    ``(b) Establishment and Purpose.--
            ``(1) In general.--The Secretary shall establish within the 
        executive operations of the Department an office to be known as 
        the `Office of Advocacy and Outreach'--
                    ``(A) to improve access to programs of the 
                Department; and
                    ``(B) to improve the viability and profitability 
                of--
                            ``(i) small farms and ranches;
                            ``(ii) beginning farmers or ranchers; and
                            ``(iii) socially disadvantaged farmers or 
                        ranchers.
            ``(2) Director.--The Office shall be headed by a Director, 
        to be appointed by the Secretary from among the competitive 
        service.
    ``(c) Duties.--The duties of the Office shall be to ensure small 
farms and ranches, beginning farmers or ranchers, and socially 
disadvantaged farmers or ranchers access to, and equitable 
participation in, programs and services of the Department by--
            ``(1) establishing and monitoring the goals and objectives 
        of the Department to increase participation in programs of the 
        Department by small, beginning, or socially disadvantaged 
        farmers or ranchers;
            ``(2) assessing the effectiveness of Department outreach 
        programs;
            ``(3) developing and implementing a plan to coordinate 
        outreach activities and services provided by the Department;
            ``(4) providing input to the agencies and offices on 
        programmatic and policy decisions;
            ``(5) measuring outcomes of the programs and activities of 
        the Department on small farms and ranches, beginning farmers or 
        ranchers, and socially disadvantaged farmers or ranchers 
        programs;
            ``(6) recommending new initiatives and programs to the 
        Secretary; and
            ``(7) carrying out any other related duties that the 
        Secretary determines to be appropriate.
    ``(d) Socially Disadvantaged Farmers Group.--
            ``(1) Establishment.--The Secretary shall establish within 
        the Office the Socially Disadvantaged Farmers Group.
            ``(2) Outreach and assistance.--The Socially Disadvantaged 
        Farmers Group--
                    ``(A) shall carry out section 2501 of the Food, 
                Agriculture, Conservation, and Trade Act of 1990 (7 
                U.S.C. 2279); and
                    ``(B) in the case of activities described in 
                section 2501(a) of that Act, may conduct such 
                activities through other agencies and offices of the 
                Department.
            ``(3) Socially disadvantaged farmers and farmworkers.--The 
        Socially Disadvantaged Farmers Group shall oversee the 
        operations of--
                    ``(A) the Advisory Committee on Minority Farmers 
                established under section 14009 of the Food, 
                Conservation, and Energy Act of 2008; and
                    ``(B) the position of Farmworker Coordinator 
                established under subsection (f).
            ``(4) Other duties.--
                    ``(A) In general.--The Socially Disadvantaged 
                Farmers Group may carry out other duties to improve 
                access to, and participation in, programs of the 
                Department by socially disadvantaged farmers or 
                ranchers, as determined by the Secretary.
                    ``(B) Office of outreach and diversity.--The Office 
                of Advocacy and Outreach shall carry out the functions 
                and duties of the Office of Outreach and Diversity 
                carried out by the Assistant Secretary for Civil Rights 
                as such functions and duties existed immediately before 
                the date of the enactment of this section.
    ``(e) Small Farms and Beginning Farmers and Ranchers Group.--
            ``(1) Establishment.--The Secretary shall establish within 
        the Office the Small Farms and Beginning Farmers and Ranchers 
        Group.
            ``(2) Duties.--
                    ``(A) Oversee offices.--The Small Farms and 
                Beginning Farmers and Ranchers Group shall oversee the 
                operations of the Office of Small Farms Coordination 
                established by Departmental Regulation 9700-1 (August 
                3, 2006).
                    ``(B) Beginning farmer and rancher development 
                program.--The Small Farms and Beginning Farmers and 
                Ranchers Group shall consult with the National 
                Institute for Food and Agriculture on the 
                administration of the beginning farmer and rancher 
                development program established under section 7405 of 
                the Farm Security and Rural Investment Act of 2002 (7 
                U.S.C. 3319f).
                    ``(C) Advisory committee for beginning farmers and 
                ranchers.--The Small Farms and Beginning Farmers and 
                Ranchers Group shall coordinate the activities of the 
                Group with the Advisory Committee for Beginning Farmers 
                and Ranchers established under section 5(b) of the 
                Agricultural Credit Improvement Act of 1992 (7 U.S.C. 
                1621 note; Public Law 102-554).
                    ``(D) Other duties.--The Small Farms and Beginning 
                Farmers and Ranchers Group may carry out other duties 
                to improve access to, and participation in, programs of 
                the Department by small farms and ranches and beginning 
                farmers or ranchers, as determined by the Secretary.
    ``(f) Farmworker Coordinator.--
            ``(1) Establishment.--The Secretary shall establish within 
        the Office the position of Farmworker Coordinator (referred to 
        in this subsection as the `Coordinator').
            ``(2) Duties.--The Secretary shall delegate to the 
        Coordinator responsibility for the following:
                    ``(A) Assisting in administering the program 
                established by section 2281 of the Food, Agriculture, 
                Conservation, and Trade Act of 1990 (42 U.S.C. 5177a).
                    ``(B) Serving as a liaison to community-based 
                nonprofit organizations that represent and have 
                demonstrated experience serving low-income migrant and 
                seasonal farmworkers.
                    ``(C) Coordinating with the Department, other 
                Federal agencies, and State and local governments to 
                ensure that farmworker needs are assessed and met 
                during declared disasters and other emergencies.
                    ``(D) Consulting within the Office and with other 
                entities to better integrate farmworker perspectives, 
                concerns, and interests into the ongoing programs of 
                the Department.
                    ``(E) Consulting with appropriate institutions on 
                research, program improvements, or agricultural 
                education opportunities that assist low-income and 
                migrant seasonal farmworkers.
                    ``(F) Assisting farmworkers in becoming 
                agricultural producers or landowners.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are necessary to 
        carry out this subsection for each of fiscal years 2009 through 
        2012.''.
    (b) Conforming Amendment.--Section 296(b) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)), as amended 
by section 7511(b), is further amended--
            (1) in paragraph (5), by striking ``; or'' and inserting 
        ``;'';
            (2) in paragraph (6), by striking the period and inserting 
        ``; or''; and
            (3) by adding at the end the following new paragraph:
            ``(7) the authority of the Secretary to establish in the 
        Department the Office of Advocacy and Outreach in accordance 
        with section 226B.''.

                   Subtitle B--Agricultural Security

SEC. 14101. SHORT TITLE.

    This subtitle may be cited as the ``Agricultural Security 
Improvement Act of 2008''.

SEC. 14102. DEFINITIONS.

    In this subtitle:
            (1) Agent.--The term ``agent'' means a nuclear, biological, 
        chemical, or radiological substance that causes agricultural 
        disease or the adulteration of products regulated by the 
        Secretary of Agriculture under any provision of law.
            (2) Agricultural biosecurity.--The term ``agricultural 
        biosecurity'' means protection from an agent that poses a 
        threat to--
                    (A) plant or animal health;
                    (B) public health as it relates to the adulteration 
                of products regulated by the Secretary of Agriculture 
                under any provision of law that is caused by exposure 
                to an agent; or
                    (C) the environment as it relates to agriculture 
                facilities, farmland, and air and water within the 
                immediate vicinity of an area associated with an 
                agricultural disease or outbreak.
            (3) Agricultural countermeasure.--The term ``agricultural 
        countermeasure''--
                    (A) means a product, practice, or technology that 
                is intended to enhance or maintain the agricultural 
                biosecurity of the United States; and
                    (B) does not include a product, practice, or 
                technology used solely in response to a human medical 
                incident or public health emergency not related to 
                agriculture.
            (4) Agricultural disease.--The term ``agricultural 
        disease'' has the meaning given the term by the Secretary.
            (5) Agricultural disease emergency.--The term 
        ``agricultural disease emergency'' means an incident of 
        agricultural disease that requires prompt action to prevent 
        significant damage to people, plants, or animals.
            (6) Agroterrorist act.--The term ``agroterrorist act'' 
        means an act that--
                    (A) causes or attempts to cause--
                            (i) damage to agriculture; or
                            (ii) injury to a person associated with 
                        agriculture; and
                    (B) is committed or appears to be committed with 
                the intent to--
                            (i) intimidate or coerce a civilian 
                        population; or
                            (ii) disrupt the agricultural industry in 
                        order to influence the policy of a government 
                        by intimidation or coercion.
            (7) Animal.--The term ``animal'' has the meaning given the 
        term in section 10403 of the Animal Health Protection Act of 
        2002 (7 U.S.C. 8302).
            (8) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (9) Development.--The term ``development'' means--
                    (A) research leading to the identification of 
                products or technologies intended for use as 
                agricultural countermeasures to protect animal health;
                    (B) the formulation, production, and subsequent 
                modification of those products or technologies;
                    (C) the conduct of in vitro and in vivo studies;
                    (D) the conduct of field, efficacy, and safety 
                studies;
                    (E) the preparation of an application for marketing 
                approval for submission to an applicable agency; or
                    (F) other actions taken by an applicable agency in 
                a case in which an agricultural countermeasure is 
                procured or used prior to issuance of a license or 
                other form of Federal Government approval.
            (10) Plant.--The term ``plant'' has the meaning given the 
        term in section 411 of the Plant Protection Act of 2000 (7 
        U.S.C. 7702).
            (11) Qualified agricultural countermeasure.--The term 
        ``qualified agricultural countermeasure'' means an agricultural 
        countermeasure that the Secretary, in consultation with the 
        Secretary of Homeland Security, determines to be a priority in 
        order to address an agricultural biosecurity threat.

                    CHAPTER 1--AGRICULTURAL SECURITY

SEC. 14111. OFFICE OF HOMELAND SECURITY.

    (a) Establishment.--There is established within the Department the 
Office of Homeland Security (in this section referred to as the 
``Office'').
    (b) Director.--The Office shall be headed by a Director of Homeland 
Security, who shall be appointed by the Secretary.
    (c) Responsibilities.--The Director of Homeland Security shall--
            (1) coordinate all homeland security activities of the 
        Department, including integration and coordination of 
        interagency emergency response plans for--
                    (A) agricultural disease emergencies;
                    (B) agroterrorist acts; and
                    (C) other threats to agricultural biosecurity;
            (2) act as the primary liaison on behalf of the Department 
        with other Federal departments and agencies on the coordination 
        of efforts and interagency activities pertaining to 
        agricultural biosecurity; and
            (3) advise the Secretary on policies, regulations, 
        processes, budget, and actions pertaining to homeland security.

SEC. 14112. AGRICULTURAL BIOSECURITY COMMUNICATION CENTER.

    (a) Establishment.--The Secretary shall establish a communication 
center within the Department to--
            (1) collect and disseminate information and prepare for an 
        agricultural disease emergency, agroterrorist act, or other 
        threat to agricultural biosecurity; and
            (2) coordinate activities described in paragraph (1) among 
        agencies and offices within the Department.
    (b) Relation to Existing DHS Communication Systems.--
            (1) Consistency and coordination.--The communication center 
        established under subsection (a) shall, to the maximum extent 
        practicable, share and coordinate the dissemination of timely 
        information with the Department of Homeland Security and other 
        communication systems of appropriate Federal departments and 
        agencies.
            (2) Avoiding redundancies.--Paragraph (1) shall not be 
        construed to impede, conflict with, or duplicate the 
        communications activities performed by the Secretary of 
        Homeland Security under any provision of law.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as may be necessary to carry out this section 
for each of fiscal years 2008 through 2012.

SEC. 14113. ASSISTANCE TO BUILD LOCAL CAPACITY IN AGRICULTURAL 
              BIOSECURITY PLANNING, PREPAREDNESS, AND RESPONSE.

    (a) Advanced Training Programs.--
            (1) Grant assistance.--The Secretary shall establish a 
        competitive grant program to support the development and 
        expansion of advanced training programs in agricultural 
        biosecurity planning and response for food science 
        professionals and veterinarians.
            (2) Authorization of appropriations.--There are authorized 
        to be appropriated to the Secretary such sums as may be 
        necessary to carry out this subsection for each of fiscal years 
        2008 through 2012.
    (b) Assessment of Response Capability.--
            (1) Grant and loan assistance.--The Secretary shall 
        establish a competitive grant and low-interest loan assistance 
        program to assist States in assessing agricultural disease 
        response capability.
            (2) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $25,000,000 for 
        each of fiscal years 2008 through 2012.

                      CHAPTER 2--OTHER PROVISIONS

SEC. 14121. RESEARCH AND DEVELOPMENT OF AGRICULTURAL COUNTERMEASURES.

    (a) Grant Program.--
            (1) Competitive grant program.--The Secretary shall 
        establish a competitive grant program to encourage basic and 
        applied research and the development of qualified agricultural 
        countermeasures.
            (2) Waiver in emergencies.--The Secretary may waive the 
        requirement under paragraph (1) that a grant be provided on a 
        competitive basis if--
                    (A) the Secretary has declared a plant or animal 
                disease emergency under the Plant Protection Act (7 
                U.S.C. 7701 et seq.) or the Animal Health Protection 
                Act (7 U.S.C. 8301 et seq.); and
                    (B) waiving the requirement would lead to the rapid 
                development of a qualified agricultural countermeasure, 
                as determined by the Secretary.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000 for each of fiscal 
years 2008 through 2012.

SEC. 14122. AGRICULTURAL BIOSECURITY GRANT PROGRAM.

    (a) Competitive Grant Program.--The Secretary shall establish a 
competitive grant program to promote the development of teaching 
programs in agriculture, veterinary medicine, and disciplines closely 
allied to the food and agriculture system to increase the number of 
trained individuals with an expertise in agricultural biosecurity.
    (b) Eligibility.--The Secretary may award a grant under this 
section only to an entity that is--
            (1) an accredited school of veterinary medicine; or
            (2) a department of an institution of higher education with 
        a primary focus on--
                    (A) comparative medicine;
                    (B) veterinary science; or
                    (C) agricultural biosecurity.
    (c) Preference.--The Secretary shall give preference in awarding 
grants based on the ability of an applicant--
            (1) to increase the number of veterinarians or individuals 
        with advanced degrees in food and agriculture disciplines who 
        are trained in agricultural biosecurity practice areas;
            (2) to increase research capacity in areas of agricultural 
        biosecurity; or
            (3) to fill critical agricultural biosecurity shortage 
        situations outside of the Federal Government.
    (d) Use of Funds..--
            (1) In general.--Amounts received under this section shall 
        be used by a grantee to pay--
                    (A) costs associated with the acquisition of 
                equipment and other capital costs relating to the 
                expansion of food, agriculture, and veterinary medicine 
                teaching programs in agricultural biosecurity;
                    (B) capital costs associated with the expansion of 
                academic programs that offer postgraduate training for 
                veterinarians or concurrent training for veterinary 
                students in specific areas of specialization; or
                    (C) other capacity and infrastructure program costs 
                that the Secretary considers appropriate.
            (2) Limitation.--Funds received under this section may not 
        be used for the construction, renovation, or rehabilitation of 
        a building or facility.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated sums as are necessary to carry out this section for each 
of fiscal years 2008 through 2012, to remain available until expended.

               Subtitle C--Other Miscellaneous Provisions

SEC. 14201. COTTON CLASSIFICATION SERVICES.

    Section 3a of the Act of March 3, 1927 (7 U.S.C. 473a), is amended 
to read as follows:

``SEC. 3A. COTTON CLASSIFICATION SERVICES.

    ``(a) In General.--The Secretary of Agriculture (referred to in 
this section as the `Secretary') shall--
            ``(1) make cotton classification services available to 
        producers of cotton; and
            ``(2) provide for the collection of classification fees 
        from participating producers or agents that voluntarily agree 
        to collect and remit the fees on behalf of producers.
    ``(b) Fees.--
            ``(1) Use of fees.--Classification fees collected under 
        subsection (a)(2) and the proceeds from the sales of samples 
        submitted under this section shall, to the maximum extent 
        practicable, be used to pay the cost of the services provided 
        under this section, including administrative and supervisory 
        costs.
            ``(2) Announcement of fees.--The Secretary shall announce a 
        uniform classification fee and any applicable surcharge for 
        classification services not later than June 1 of the year in 
        which the fee applies.
    ``(c) Consultation.--
            ``(1) In general.--In establishing the amount of fees under 
        this section, the Secretary shall consult with representatives 
        of the United States cotton industry.
            ``(2) Exemption.--The Federal Advisory Committee Act (5 
        U.S.C. App.) shall not apply to consultations with 
        representatives of the United States cotton industry under this 
        section.
    ``(d) Crediting of Fees.--Any fees collected under this section and 
under section 3d, late payment penalties, the proceeds from the sales 
of samples, and interest earned from the investment of such funds 
shall--
            ``(1) be credited to the current appropriation account that 
        incurs the cost of services provided under this section and 
        section 3d; and
            ``(2) remain available without fiscal year limitation to 
        pay the expenses of the Secretary in providing those services.
    ``(e) Investment of Funds.--Funds described in subsection (d) may 
be invested--
            ``(1) by the Secretary in insured or fully collateralized, 
        interest-bearing accounts; or
            ``(2) at the discretion of the Secretary, by the Secretary 
        of the Treasury in United States Government debt instruments.
    ``(f) Lease Agreements.--Notwithstanding any other provision of 
law, the Secretary may enter into long-term lease agreements that 
exceed 5 years or may take title to property (including through 
purchase agreements) for the purpose of obtaining offices to be used 
for the classification of cotton in accordance with this Act, if the 
Secretary determines that action would best effectuate the purposes of 
this Act.
    ``(g) Authorization of Appropriations.--To the extent that 
financing is not available from fees and the proceeds from the sales of 
samples, there are authorized to be appropriated such sums as are 
necessary to carry out this section.''.

SEC. 14202. DESIGNATION OF STATES FOR COTTON RESEARCH AND PROMOTION.

    Section 17(f) of the Cotton Research and Promotion Act (7 U.S.C. 
2116(f)) is amended--
            (1) by striking ``(f) The term'' and inserting the 
        following:
    ``(f) Cotton-Producing State.--
            ``(1) In general.--The term'';
            (2) by striking ``more, and the term'' and all that follows 
        through the end of the subsection and inserting the following: 
        ``more.
            ``(2) Inclusions.--The term `cotton-producing State' 
        includes--
                    ``(A) any combination of States described in 
                paragraph (1); and
                    ``(B) effective beginning with the 2008 crop of 
                cotton, the States of Kansas, Virginia, and Florida.''.

SEC. 14203. GRANTS TO REDUCE PRODUCTION OF METHAMPHETAMINES FROM 
              ANHYDROUS AMMONIA.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) a producer of agricultural commodities;
                    (B) a cooperative association, a majority of the 
                members of which produce or process agricultural 
                commodities; or
                    (C) a person in the trade or business of--
                            (i) selling an agricultural product 
                        (including an agricultural chemical) at retail, 
                        predominantly to farmers and ranchers; or
                            (ii) aerial and ground application of an 
                        agricultural chemical.
            (2) Nurse tank.--The term ``nurse tank'' shall be 
        considered to be a cargo tank (within the meaning of section 
        173.315(m) of title 49, Code of Federal Regulations, as in 
        effect as of the date of the enactment of this Act).
    (b) Grant Authority.--The Secretary may make a grant to an eligible 
entity to enable the eligible entity to obtain and add to an anhydrous 
ammonia fertilizer nurse tank a physical lock or a substance to reduce 
the amount of methamphetamine that can be produced from any anhydrous 
ammonia removed from the nurse tank.
    (c) Grant Amount.--The amount of a grant made under this section to 
an eligible entity shall be the product obtained by multiplying--
            (1) an amount not less than $40 and not more than $60, as 
        determined by the Secretary; and
            (2) the number of fertilizer nurse tanks of the eligible 
        entity.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to make grants under this section 
$15,000,000 for the period of fiscal years 2008 through 2012.

SEC. 14204. GRANTS TO IMPROVE SUPPLY, STABILITY, SAFETY, AND TRAINING 
              OF AGRICULTURAL LABOR FORCE.

    (a) Definition of Eligible Entity.--In this section, the term 
``eligible entity'' means an entity described in section 379C(a) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2008q(a)).
    (b) Grants.--
            (1) In general.--To assist agricultural employers and 
        farmworkers by improving the supply, stability, safety, and 
        training of the agricultural labor force, the Secretary may 
        provide grants to eligible entities for use in providing 
        services to assist farmworkers who are citizens or otherwise 
        legally present in the United States in securing, retaining, 
        upgrading, or returning from agricultural jobs.
            (2) Eligible services.--The services referred to in 
        paragraph (1) include--
                    (A) agricultural labor skills development;
                    (B) the provision of agricultural labor market 
                information;
                    (C) transportation;
                    (D) short-term housing while in transit to an 
                agricultural worksite;
                    (E) workplace literacy and assistance with English 
                as a second language;
                    (F) health and safety instruction, including ways 
                of safeguarding the food supply of the United States; 
                and
                    (G) such other services as the Secretary determines 
                to be appropriate.
    (c) Limitation on Administrative Expenses.--Not more than 15 
percent of the funds made available to carry out this section for a 
fiscal year may be used to pay for administrative expenses.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2008 through 2012.

SEC. 14205. AMENDMENT TO THE RIGHT TO FINANCIAL PRIVACY ACT OF 1978.

    Section 1113(k) of the Right to Financial Privacy Act of 1978 (12 
U.S.C. 3413(k)) is amended--
            (1) by striking the subsection heading and inserting the 
        following:
    ``(k) Disclosure Necessary for Proper Administration of Programs of 
Certain Government Authorities.--''; and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) Nothing in this title shall apply to the disclosure 
        by the financial institution of information contained in the 
        financial records of any customer to any Government authority 
        that certifies, disburses, or collects payments, where the 
        disclosure of such information is necessary to, and such 
        information is used solely for the purpose of--
                    ``(A) verification of the identity of any person or 
                proper routing and delivery of funds in connection with 
                the issuance of a Federal payment or collection of 
                funds by a Government authority; or
                    ``(B) the investigation or recovery of an improper 
                Federal payment or collection of funds or an improperly 
                negotiated Treasury check.
            ``(3) Notwithstanding any other provision of law, a request 
        authorized by paragraph (1) or (2) (and the information 
        contained therein) may be used by the financial institution or 
        its agents solely for the purpose of providing information 
        contained in the financial records of the customer to the 
        Government authority requesting the information, and the 
        financial institution and its agents shall be barred from 
        redisclosure of such information. Any Government authority 
        receiving information pursuant to paragraph (1) or (2) may not 
        disclose or use the information, except for the purposes set 
        forth in such paragraph.''.

SEC. 14206. REPORT ON STORED QUANTITIES OF PROPANE.

    (a) Report.--
            (1) In general.--Not later than 240 days after the date of 
        the enactment of this Act, the Secretary of Homeland Security 
        (referred to in this section as the ``Secretary'') shall submit 
        to the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate and the Committee on Agriculture of the House of 
        Representatives a report describing the effect of interim or 
        final regulations issued by the Secretary pursuant to section 
        550(a) of the Department of Homeland Security Appropriations 
        Act, 2007 (6 U.S.C. 121 note; Public Law 109-295), with respect 
        to possession of quantities of propane that meet or exceed the 
        screening threshold quantity for propane established in the 
        final rule under that section.
            (2) Inclusions.--The report under paragraph (1) shall 
        include a description of--
                    (A) the number of facilities that completed a top 
                screen consequence assessment due to possession of 
                quantities of propane that meet or exceed the listed 
                screening threshold quantity for propane;
                    (B) the number of agricultural facilities that 
                completed the top screen consequence assessment due to 
                possession of quantities of propane that meet or exceed 
                the listed screening threshold quantity for propane;
                    (C) the number of propane facilities initially 
                determined to be high risk by the Secretary;
                    (D) the number of propane facilities--
                            (i) required to complete a security 
                        vulnerability assessment or a site security 
                        plan; or
                            (ii) that submit to the Secretary an 
                        alternative security program;
                    (E) the number of propane facilities that file an 
                appeal of a finding under the final rule described in 
                paragraph (1); and
                    (F) to the extent available, the average cost of--
                            (i) completing a top screen consequence 
                        assessment requirement;
                            (ii) completing a security vulnerability 
                        assessment; and
                            (iii) completing and implementing a site 
                        security plan; and
            (3) Form.--The report under paragraph (1) shall be 
        submitted in unclassified form, but may include a classified 
        annex.
    (b) Educational Outreach.--Not later than 30 days after the date of 
the enactment of this Act, the Secretary shall conduct educational 
outreach activities for rural facilities that may be required to 
complete a top screen consequence assessment due to possession of 
propane in a quantity that meets or exceeds the listed screening 
threshold quantity for propane.

SEC. 14207. PROHIBITIONS ON DOG FIGHTING VENTURES.

    (a) In General.--Section 26 of the Animal Welfare Act (7 U.S.C. 
2156) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``, if any animal 
                in the venture was moved in interstate or foreign 
                commerce''; and
                    (B) in the heading of paragraph (2), by striking 
                ``state'' and inserting ``State'';
            (2) in subsection (b)--
                    (A) by striking ``(b) It shall be'' and inserting 
                the following:
    ``(b) Buying, Selling, Delivering, Possessing, Training, or 
Transporting Animals for Participation in Animal Fighting Venture.--It 
shall be''; and
                    (B) by striking ``transport, deliver'' and all that 
                follows through ``participate'' and inserting 
                ``possess, train, transport, deliver, or receive any 
                animal for purposes of having the animal participate'';
            (3) in subsection (c)--
                    (A) by striking ``(c) It shall be'' and inserting 
                the following:
    ``(c) Use of Postal Service or Other Interstate Instrumentality for 
Promoting or Furthering Animal Fighting Venture.--It shall be''; and
                    (B) by inserting ``advertising an animal, or an 
                instrument described in subsection (e), for use in an 
                animal fighting venture,'' after ``for purposes of'';
            (4) in subsection (d), by striking ``(d) Notwithstanding'' 
        and inserting the following:
    ``(d) Violation of State Law.--Notwithstanding'';
            (5) in subsection (e), by striking ``(e) It shall be'' and 
        inserting the following:
    ``(e) Buying, Selling, Delivering, or Transporting Sharp 
Instruments for Use in Animal Fighting Venture.--It shall be'';
            (6) in subsection (f)--
                    (A) by striking ``(f) The Secretary'' and inserting 
                the following:
    ``(f) Investigation of Violations by Secretary; Assistance by Other 
Federal Agencies; Issuance of Search Warrant; Forfeiture; Costs 
Recoverable in Forfeiture or Civil Action.--The Secretary''; and
                    (B) in the last sentence--
                            (i) by striking ``by the United States'';
                            (ii) by inserting ``(1)'' after ``owner of 
                        the animals''; and
                            (iii) by striking ``proceeding or in'' and 
                        inserting ``proceeding, or (2) in'';
            (7) in subsection (g)--
                    (A) by striking ``(g) For purposes of'' and 
                inserting the following:
    ``(g) Definitions.--In'';
                    (B) in paragraph (1), by striking ``any event'' and 
                all that follows through ``entertainment'' and 
                inserting ``any event, in or affecting interstate or 
                foreign commerce, that involves a fight conducted or to 
                be conducted between at least 2 animals for purposes of 
                sport, wagering, or entertainment,'';
                    (C) by striking paragraph (2);
                    (D) in paragraph (5)--
                            (i) by striking ``dog or other''; and
                            (ii) by striking ``; and'' and inserting a 
                        period; and
                    (E) by redesignating paragraphs (3) through (5) as 
                paragraphs (2) through (4), respectively;
            (8) by redesignating subsections (h) and (i) as subsections 
        (i) and (j), respectively;
            (9) in subsection (i) (as so redesignated), by striking 
        ``(i)(1) The provisions'' and inserting the following:
    ``(i) Conflict With State Law.--
            ``(1) In general.--The provisions'';
            (10) in subsection (j) (as so redesignated), by striking 
        ``(j) The criminal'' and inserting the following:
    ``(j) Criminal Penalties.--The criminal''; and
            (11) in subsection (g)(6), by striking ``(6) the conduct'' 
        and inserting the following:
    ``(h) Relationship to Other Provisions.--The conduct''.
    (b) Enforcement of Animal Fighting Prohibitions.--Section 49 of 
title 18, United States Code, is amended by striking ``3 years'' and 
inserting ``5 years''.

SEC. 14208. DEPARTMENT OF AGRICULTURE CONFERENCE TRANSPARENCY.

    (a) Report.--
            (1) Requirement.--Not later than September 30 of each year, 
        the Secretary of Agriculture shall submit to the Committee on 
        Agriculture of the House of Representatives and the Committee 
        on Agriculture, Nutrition, and Forestry of the Senate, a report 
        on conferences sponsored or held by the Department of 
        Agriculture or attended by employees of the Department of 
        Agriculture.
            (2) Contents.--Each report under paragraph (1) shall 
        contain--
                    (A) for each conference sponsored or held by the 
                Department or attended by employees of the Department--
                            (i) the name of the conference;
                            (ii) the location of the conference;
                            (iii) the number of Department of 
                        Agriculture employees attending the conference; 
                        and
                            (iv) the costs (including travel expenses) 
                        relating to such conference; and
                    (B) for each conference sponsored or held by the 
                Department of Agriculture for which the Department 
                awarded a procurement contract, a description of the 
                contracting procedures related to such conference.
            (3) Exclusions.--The requirement in paragraph (1) shall not 
        apply to any conference--
                    (A) for which the cost to the Federal Government 
                was less than $10,000; or
                    (B) outside of the United States that is attended 
                by the Secretary or the Secretary's designee as an 
                official representative of the United States 
                government.
    (b) Availability of Report.--Each report submitted in accordance 
with subsection (a) shall be posted in a searchable format on a 
Department of Agriculture website that is available to the public.
    (c) Definition of Conference.--In this section, the term 
``conference''--
            (1) means a meeting that--
                    (A) is held for consultation, education, awareness, 
                or discussion;
                    (B) includes participants from at least one agency 
                of the Department of Agriculture;
                    (C) is held in whole or in part at a facility 
                outside of an agency of the Department of Agriculture; 
                and
                    (D) involves costs associated with travel and 
                lodging for some participants; and
            (2) does not include any training program that is 
        continuing education or a curriculum-based educational program, 
        provided that such training program is held independent of a 
        conference of a non-governmental organization.

SEC. 14209. FEDERAL INSECTICIDE, FUNGICIDE, AND RODENTICIDE ACT 
              AMENDMENTS.

    (a) Payment of Expenses.--Section 17(d) of the Federal Insecticide, 
Fungicide, and Rodenticide Act (7 U.S.C. 136o(d)) is amended--
            (1) by striking ``The Administrator'' and inserting the 
        following:
            ``(1) In general.--The Administrator''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Department of state expenses.--Any expenses incurred 
        by an employee of the Environmental Protection Agency who 
        participates in any international technical, economic, or 
        policy review board, committee, or other official body that is 
        meeting in relation to an international treaty shall be paid by 
        the Department of State.''.
    (b) Container Recycling.--Section 19(a) of the Federal Insecticide, 
Fungicide, and Rodenticide Act (7 U.S.C. 136q(a)) is amended by adding 
at the end the following new paragraph:
            ``(4) Container recycling.--The Secretary may promulgate a 
        regulation for the return and recycling of disposable pesticide 
        containers used for the distribution or sale of registered 
        pesticide products in interstate commerce. Any such regulation 
        requiring recycling of disposable pesticide containers shall 
        not apply to antimicrobial pesticides (as defined in section 2) 
        or other pesticide products intended for non-agricultural 
        uses.''.

SEC. 14210. IMPORTATION OF LIVE DOGS.

    (a) In General.--The Animal Welfare Act is amended by adding after 
section 17 (7 U.S.C. 2147) the following:

``SEC. 18. IMPORTATION OF LIVE DOGS.

    ``(a) Definitions.--In this section:
            ``(1) Importer.--The term `importer' means any person who, 
        for purposes of resale, transports into the United States 
        puppies from a foreign country.
            ``(2) Resale.--The term `resale' includes any transfer of 
        ownership or control of an imported dog of less than 6 months 
        of age to another person, for more than de minimis 
        consideration.
    ``(b) Requirements.--
            ``(1) In general.--Except as provided in paragraph (2), no 
        person shall import a dog into the United States for purposes 
        of resale unless, as determined by the Secretary, the dog--
                    ``(A) is in good health;
                    ``(B) has received all necessary vaccinations; and
                    ``(C) is at least 6 months of age, if imported for 
                resale.
            ``(2) Exception.--
                    ``(A) In general.--The Secretary, by regulation, 
                shall provide an exception to any requirement under 
                paragraph (1) in any case in which a dog is imported 
                for--
                            ``(i) research purposes; or
                            ``(ii) veterinary treatment.
                    ``(B) Lawful importation into hawaii.--Paragraph 
                (1)(C) shall not apply to the lawful importation of a 
                dog into the State of Hawaii from the British Isles, 
                Australia, Guam, or New Zealand in compliance with the 
                applicable regulations of the State of Hawaii and the 
                other requirements of this section, if the dog is not 
                transported out of the State of Hawaii for purposes of 
                resale at less than 6 months of age.
    ``(c) Implementation and Regulations.--The Secretary, the Secretary 
of Health and Human Services, the Secretary of Commerce, and the 
Secretary of Homeland Security shall promulgate such regulations as the 
Secretaries determine to be necessary to implement and enforce this 
section.
    ``(d) Enforcement.--An importer that fails to comply with this 
section shall--
            ``(1) be subject to penalties under section 19; and
            ``(2) provide for the care (including appropriate 
        veterinary care), forfeiture, and adoption of each applicable 
        dog, at the expense of the importer.''.
    (b) Effective Date.--The amendment made by subsection (a) takes 
effect on the date of the enactment of this Act.

SEC. 14211. PERMANENT DEBARMENT FROM PARTICIPATION IN DEPARTMENT OF 
              AGRICULTURE PROGRAMS FOR FRAUD.

    (a) In General.--Subject to subsection (b), the Secretary of 
Agriculture shall permanently debar an individual, organization, 
corporation, or other entity convicted of a felony for knowingly 
defrauding the United States in connection with any program 
administered by the Department of Agriculture from any subsequent 
participation in Department of Agriculture programs.
    (b) Exceptions.--
            (1) Secretary determination.--The Secretary may reduce a 
        debarment under subsection (a) to a period of not less than 10 
        years if the Secretary considers it appropriate.
            (2) Food assistance.--A debarment under subsection (a) 
        shall not apply with respect to participation in domestic food 
        assistance programs (as defined by the Secretary).

SEC. 14212. PROHIBITION ON CLOSURE OR RELOCATION OF COUNTY OFFICES FOR 
              THE FARM SERVICE AGENCY.

    (a) Temporary Prohibition.--
            (1) In general.--Subject to paragraph (2), until the date 
        that is two years after the date of the enactment of this Act, 
        the Secretary of Agriculture may not close or relocate a county 
        or field office of the Farm Service Agency.
            (2) Exception.--Paragraph (1) shall not apply to--
                    (A) an office that is located not more than 20 
                miles from another office of the Farm Service Agency; 
                or
                    (B) the relocation of an office within the same 
                county in the course of routine leasing operations.
    (b) Limitation on Closure; Notice.--
            (1) Limitation.--After the period referred to in subsection 
        (a)(1), the Secretary shall, before closing any office of the 
        Farm Service Agency that is located more than 20 miles from 
        another office of the Farm Service Agency, to the maximum 
        extent practicable, first close any offices of the Farm Service 
        Agency that--
                    (A) are located less than 20 miles from another 
                office of the Farm Service Agency; and
                    (B) have two or fewer permanent full-time 
                employees.
            (2) Notice.--After the period referred to in subsection 
        (a)(1), the Secretary of Agriculture may not close a county or 
        field office of the Farm Service Agency unless--
                    (A) not later than 30 days after the Secretary 
                proposes to close such office, the Secretary holds a 
                public meeting regarding the proposed closure in the 
                county in which such office is located; and
                    (B) after the public meeting referred to in 
                subparagraph (A), but not less than 90 days before the 
                date on which the Secretary approves the closure of 
                such office, the Secretary notifies the Committee on 
                Agriculture and the Committee on Appropriations of the 
                House of Representatives, the Committee on Agriculture, 
                Nutrition, and Forestry and the Committee on 
                Appropriations of the Senate, each Senator representing 
                the State in which the office proposed to be closed is 
                located, and the member of the House of Representatives 
                who represents the Congressional district in which the 
                office proposed to be closed is located of the proposed 
                closure of such office.

SEC. 14213. USDA GRADUATE SCHOOL.

    (a) In General.--Section 921 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 2279b) is amended--
            (1) in the heading, to read as follows:

``SEC. 921. DEPARTMENT OF AGRICULTURE EDUCATIONAL, TRAINING, AND 
              PROFESSIONAL DEVELOPMENT ACTIVITIES.''; AND

            (2) by striking subsection (b) and inserting the following 
        new subsection:
    ``(b) Operation as Nonappropriated Fund Instrumentality.--
            ``(1) Cease operations.--Not later than October 1, 2009, 
        the Secretary of Agriculture shall cease to maintain or operate 
        a nonappropriated fund instrumentality of the United States to 
        develop, administer, or provide educational training and 
        professional development activities, including educational 
        activities for Federal agencies, Federal employees, non-profit 
        organizations, other entities, and members of the general 
        public.
            ``(2) Transition.--
                    ``(A) In general.--The Secretary of Agriculture is 
                authorized to use funds available to the Department of 
                Agriculture and such resources of the Department as the 
                Secretary considers appropriate (including the 
                assignment of such employees of the Department as the 
                Secretary considers appropriate) to assist the General 
                Administrative Board of the Graduate School in the 
                conversion of the Graduate School to an entity that is 
                non-governmental and not a nonappropriated fund 
                instrumentality of the United States, including such 
                privatization activities not otherwise inconsistent 
                with law or regulation.
                    ``(B) Termination of authority.--The authority 
                under paragraph (1) shall terminate on the earlier of--
                            ``(i) the completion of the transition of 
                        the Graduate School to an entity that is non-
                        governmental and not a nonappropriated fund 
                        instrumentality of the United States, as 
                        determined by the Secretary; or
                            ``(ii) September 30, 2009.''.
    (b) Procurement Procedures.--Notwithstanding the amendments made by 
subsection (a), effective on the date of the enactment of this Act, the 
Graduate School of the Department of Agriculture shall be subject to 
Federal procurement laws and regulations in the same manner and subject 
to the same requirements as a private entity providing services to the 
Federal Government.

SEC. 14214. FINES FOR VIOLATIONS OF THE ANIMAL WELFARE ACT.

    Section 19(b) of the Animal Welfare Act (7 U.S.C. 2149(b)) is 
amended in the first sentence by striking ``not more than $2,500 for 
each such violation'' and inserting ``not more than $10,000 for each 
such violation''.

SEC. 14215. DEFINITION OF CENTRAL FILING SYSTEM.

    Section 1324(c)(2) of the Food Security Act of 1985 (7 U.S.C. 
1631(c)(2)) is amended--
            (1) in subparagraph (C)(ii)(II), by inserting after ``such 
        debtors'' the following: ``, except that the numerical list 
        containing social security or taxpayer identification numbers 
        may be encrypted for security purposes if the Secretary of 
        State provides a method by which an effective search of the 
        encrypted numbers may be conducted to determine whether the 
        farm product at issue is subject to 1 or more liens''; and
            (2) in subparagraph (E)--
                    (A) by striking ``paragraph (C)'' and inserting 
                ``subparagraph (C)''; and
                    (B) by inserting before the semicolon at the end 
                the following: ``except that--
                            ``(i) the distribution of the portion of 
                        the master list may be in electronic, written, 
                        or printed form; and
                            ``(ii) if social security or taxpayer 
                        identification numbers on the master list are 
                        encrypted, the Secretary of State may 
                        distribute the master list only--
                                    ``(I) by compact disc or other 
                                electronic media that contains--
                                            ``(aa) the recorded list of 
                                        debtor names; and
                                            ``(bb) an encryption 
                                        program that enables the buyer, 
                                        commission merchant, and 
                                        selling agent to enter a social 
                                        security number for matching 
                                        against the recorded list of 
                                        encrypted social security or 
                                        taxpayer identification 
                                        numbers; and
                                    ``(II) on the written request of 
                                the buyer, commission merchant, or 
                                selling agent, by paper copy of the 
                                list to the requestor''.

SEC. 14216. CONSIDERATION OF PROPOSED RECOMMENDATIONS OF STUDY ON USE 
              OF CATS AND DOGS IN FEDERAL RESEARCH.

    (a) In General.--The Secretary of Agriculture shall--
            (1) review--
                    (A) any independent reviews conducted by a 
                nationally recognized panel of experts of the use of 
                Class B dogs and cats in federally supported research 
                to determine how frequently such dogs and cats are used 
                in research by the National Institutes of Health; and
                    (B) any recommendations proposed by such panel 
                outlining the parameters of such use; and
            (2) submit to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate a report on how recommendations 
        referred to in paragraph (1)(B) can be applied within the 
        Department of Agriculture to ensure such dogs and cats are 
        treated in accordance with regulations of the Department of 
        Agriculture.
    (b) Class B Dogs and Cats Defined.--In this section, the term 
``Class B dogs and cats'' means dogs and cats obtained from a Class 
``B'' licensee, as such term is defined in section 1.1 of title 9, Code 
of Federal Regulations.

SEC. 14217. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT.

    (a) In General.--Title 40, United States Code, is amended--
            (1) by redesignating subtitle V as subtitle VI; and
            (2) by inserting after subtitle IV the following:

     ``Subtitle V--Regional Economic and Infrastructure Development

``Chapter...................................................
``151. GENERAL PROVISIONS...................................      15101
``153. REGIONAL COMMISSIONS.................................      15301
``155. FINANCIAL ASSISTANCE.................................      15501
``157. ADMINISTRATIVE PROVISIONS............................      15701

                    ``CHAPTER 1--GENERAL PROVISIONS

``Sec.
``15101. Definitions.
``Sec. 15101. Definitions
    ``In this subtitle, the following definitions apply:
            ``(1) Commission.--The term `Commission' means a Commission 
        established under section 15301.
            ``(2) Local development district.--The term `local 
        development district' means an entity that--
                    ``(A)(i) is an economic development district that 
                is--
                            ``(I) in existence on the date of the 
                        enactment of this chapter; and
                            ``(II) located in the region; or
                    ``(ii) if an entity described in clause (i) does 
                not exist--
                            ``(I) is organized and operated in a manner 
                        that ensures broad-based community 
                        participation and an effective opportunity for 
                        local officials, community leaders, and the 
                        public to contribute to the development and 
                        implementation of programs in the region;
                            ``(II) is governed by a policy board with 
                        at least a simple majority of members 
                        consisting of--
                                    ``(aa) elected officials; or
                                    ``(bb) designees or employees of a 
                                general purpose unit of local 
                                government that have been appointed to 
                                represent the unit of local government; 
                                and
                            ``(III) is certified by the Governor or 
                        appropriate State officer as having a charter 
                        or authority that includes the economic 
                        development of counties, portions of counties, 
                        or other political subdivisions within the 
                        region; and
                    ``(B) has not, as certified by the Federal 
                Cochairperson--
                            ``(i) inappropriately used Federal grant 
                        funds from any Federal source; or
                            ``(ii) appointed an officer who, during the 
                        period in which another entity inappropriately 
                        used Federal grant funds from any Federal 
                        source, was an officer of the other entity.
            ``(3) Federal grant program.--The term `Federal grant 
        program' means a Federal grant program to provide assistance in 
        carrying out economic and community development activities.
            ``(4) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            ``(5) Nonprofit entity.--The term `nonprofit entity' means 
        any organization described in section 501(c) of the Internal 
        Revenue Code of 1986 and exempt from taxation under 501(a) of 
        that Code that has been formed for the purpose of economic 
        development.
            ``(6) Region.--The term `region' means the area covered by 
        a Commission as described in subchapter II of chapter 157.

                   ``CHAPTER 2--REGIONAL COMMISSIONS

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

                   ``CHAPTER 3--FINANCIAL ASSISTANCE

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

                 ``CHAPTER 4--ADMINISTRATIVE PROVISIONS

                   ``subchapter i--general provisions

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

``Sec. 15731. Southeast Crescent Regional Commission.
``Sec. 15732. Southwest Border Regional Commission.
``Sec. 15733. Northern Border Regional Commission.
            ``subchapter iii--authorization of appropriations

``Sec. 15751. Authorization of appropriations.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

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

                ``SUBCHAPTER II--DESIGNATION OF REGIONS

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

           ``SUBCHAPTER III--AUTHORIZATION OF APPROPRIATIONS

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

``V. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT.......     15101 
``VI. MISCELLANEOUS.........................................   17101''.
    (c) Conforming Amendments to Inspector General Act.--Section 11 of 
the Inspector General Act of 1978 (5 U.S.C. App.) is amended--
            (1) in paragraph (1), by striking ``or the President of the 
        Export-Import Bank;'' and inserting ``the President of the 
        Export-Import Bank; or the Federal Cochairpersons of the 
        Commissions established under section 15301 of title 40, United 
        States Code;''; and
            (2) in paragraph (2), by striking ``or the Export-Import 
        Bank,'' and inserting ``the Export-Import Bank, or the 
        Commissions established under section 15301 of title 40, United 
        States Code,''.
    (d) Effective Date.--This section, and the amendments made by this 
section, shall take effect on the first day of the first fiscal year 
beginning after the date of the enactment of this Act.

SEC. 14218. COORDINATOR FOR CHRONICALLY UNDERSERVED RURAL AREAS.

    (a) Establishment.--The Secretary of Agriculture shall establish a 
Coordinator for Chronically Underserved Rural Areas (in this section 
referred to as the ``Coordinator''), to be located in the Rural 
Development Mission Area.
    (b) Mission.--The mission of the Coordinator shall be to direct 
Department of Agriculture resources to high need, high poverty rural 
areas.
    (c) Duties.--The Coordinator shall consult with other offices in 
directing technical assistance, strategic regional planning, at the 
State and local level, for developing rural economic development that 
leverages the resources of State and local governments and non-profit 
and community development organizations.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as necessary to carry out this 
section for fiscal years 2008 through 2012.

SEC. 14219. ELIMINATION OF STATUTE OF LIMITATIONS APPLICABLE TO 
              COLLECTION OF DEBT BY ADMINISTRATIVE OFFSET.

    (a) Elimination.--Section 3716(e) of title 31, United States Code, 
is amended to read as follows:
    ``(e)(1) Notwithstanding any other provision of law, regulation, or 
administrative limitation, no limitation on the period within which an 
offset may be initiated or taken pursuant to this section shall be 
effective.
    ``(2) This section does not apply when a statute explicitly 
prohibits using administrative offset or setoff to collect the claim or 
type of claim involved.''.
    (b) Application of Amendment.--The amendment made by subsection (a) 
shall apply to any debt outstanding on or after the date of the 
enactment of this Act.

SEC. 14220. AVAILABILITY OF EXCESS AND SURPLUS COMPUTERS IN RURAL 
              AREAS.

    In addition to any other authority, the Secretary of Agriculture 
may make available to an organization excess or surplus computers or 
other technical equipment of the Department of Agriculture for the 
purposes of distribution to a city, town, or local government entity in 
a rural area (as defined in section 343(a)(13)(A) of the Consolidated 
Farm and Rural Development Act).

SEC. 14221. REPEAL OF SECTION 3068 OF THE WATER RESOURCES DEVELOPMENT 
              ACT OF 2007.

    Effective upon the date of enactment of this Act, section 3068 of 
the Water Resources Development Act of 2007 (Public Law 110-114; 121 
Stat. 1123), and the item relating to section 3068 in the table of 
contents of that Act, are repealed.

SEC. 14222. DOMESTIC FOOD ASSISTANCE PROGRAMS.

    (a) Definition of Section 32.--In this section, the term ``section 
32'' means section 32 of the Act of August 24, 1935 (7 U.S.C. 612c).
    (b) Transfer to Food and Nutrition Service.--
            (1) In general.--Amounts made available for a fiscal year 
        to carry out section 32 in excess of the maximum amount 
        calculated under paragraph (2) shall be transferred to the 
        Secretary, acting through the Administrator of the Food and 
        Nutrition Service, to be used to carry out the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1751 et seq.).
            (2) Maximum amount.--The maximum amount calculated under 
        this paragraph for a fiscal year is the sum of--
                    (A)(i) in the case of fiscal year 2009, 
                $1,173,000,000;
                    (ii) in the case of fiscal year 2010, 
                $1,199,000,000;
                    (iii) in the case of fiscal year 2011, 
                $1,215,000,000;
                    (iv) in the case of fiscal year 2012, 
                $1,231,000,000;
                    (v) in the case of fiscal year 2013, 
                $1,248,000,000;
                    (vi) in the case of fiscal year 2014, 
                $1,266,000,000;
                    (vii) in the case of fiscal year 2015, 
                $1,284,000,000;
                    (viii) in the case of fiscal year 2016, 
                $1,303,000,000;
                    (ix) in the case of fiscal year 2017, 
                $1,322,000,000; and
                    (x) for fiscal year 2018 and each fiscal year 
                thereafter, the amount made available for the preceding 
                fiscal year, as adjusted to reflect changes for the 12-
                month period ending on the preceding November 30 in the 
                Consumer Price Index for All Urban Consumers published 
                by the Bureau of Labor Statistics of the Department of 
                Labor; and
            (B) any transfers for the fiscal year from section 32 to 
        the Department of Commerce under the Fish and Wildlife Act of 
        1956 (16 U.S.C. 742a et seq.).
    (c) Fresh Fruit and Vegetable Program.--Of amounts made available 
to carry out section 32 under subsection (b)(2)(A), the Secretary shall 
transfer for use to carry out the fresh fruit and vegetable program 
under section 19 of the Richard B. Russell National School Lunch Act 
the amounts specified in subsection (i) of that section.
    (d) Whole Grain Products.--Of amounts made available to carry out 
section 32 under subsection (b)(2)(A), the Secretary shall use to carry 
out section 4305 $4,000,000 for fiscal year 2009.
    (e) Maintenance of Funding.--The funding provided under subsections 
(c) and (d) shall supplement (and not supplant) other Federal funding 
(including section 32 funding) for programs carried out under--
            (1) the Richard B. Russell National School Lunch Act (42 
        U.S.C. 1751 et seq.), except for section 19 of that Act;
            (2) the Emergency Food Assistance Act of 1983 (7 U.S.C. 
        7501 et seq.); and
            (3) section 27 of the Food Stamp Act of 1977 (7 U.S.C. 
        2036).

SEC. 14223. TECHNICAL CORRECTION.

    Section 923(1)(B) of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 2206a(1)(B)) is amended by striking ``as defined 
in section 316(b) of the Higher Education Act of 1965 (20 U.S.C. 
1059c(b))'' and inserting ``as defined in section 502(a)(5) of the 
Higher Education Act of 1965 (20 U.S.C. 1101a(a)(5))''.

                   TITLE XV--TRADE AND TAX PROVISIONS

SEC. 15001. SHORT TITLE; ETC.

    (a) Short Title.--This title may be cited as the ``Heartland, 
Habitat, Harvest, and Horticulture Act of 2008''.
    (b) Amendments to 1986 Code.--Except as otherwise expressly 
provided, whenever in this title an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

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

SEC. 15101. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

    (a) In General.--The Trade Act of 1974 (19 U.S.C. 2101 et seq.) is 
amended by adding at the end the following:

       ``TITLE IX--SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE

``SEC. 901. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

    ``(a) Definitions.--In this section:
            ``(1) Actual production history yield.--The term `actual 
        production history yield' means the weighted average of the 
        actual production history for each insurable commodity or 
        noninsurable commodity, as calculated under the Federal Crop 
        Insurance Act (7 U.S.C. 1501 et seq.) or the noninsured crop 
        disaster assistance program, respectively.
            ``(2) Adjusted actual production history yield.--The term 
        `adjusted actual production history yield' means--
                    ``(A) in the case of an eligible producer on a farm 
                that has at least 4 years of actual production history 
                yields for an insurable commodity that are established 
                other than pursuant to section 508(g)(4)(B) of the 
                Federal Crop Insurance Act (7 U.S.C. 1508(g)(4)(B)), 
                the actual production history for the eligible producer 
                without regard to any yields established under that 
                section;
                    ``(B) in the case of an eligible producer on a farm 
                that has less than 4 years of actual production history 
                yields for an insurable commodity, of which 1 or more 
                were established pursuant to section 508(g)(4)(B) of 
                that Act, the actual production history for the 
                eligible producer as calculated without including the 
                lowest of the yields established pursuant to section 
                508(g)(4)(B) of that Act; and
                    ``(C) in all other cases, the actual production 
                history of the eligible producer on a farm.
            ``(3) Adjusted noninsured crop disaster assistance program 
        yield.--The term `adjusted noninsured crop disaster assistance 
        program yield' means--
                    ``(A) in the case of an eligible producer on a farm 
                that has at least 4 years of production history under 
                the noninsured crop disaster assistance program that 
                are not replacement yields, the noninsured crop 
                disaster assistance program yield without regard to any 
                replacement yields;
                    ``(B) in the case of an eligible producer on a farm 
                that less than 4 years of production history under the 
                noninsured crop disaster assistance program that are 
                not replacement yields, the noninsured crop disaster 
                assistance program yield as calculated without 
                including the lowest of the replacement yields; and
                    ``(C) in all other cases, the production history of 
                the eligible producer on the farm under the noninsured 
                crop disaster assistance program.
            ``(4) Counter-cyclical program payment yield.--The term 
        `counter-cyclical program payment yield' means the weighted 
        average payment yield established under section 1102 of the 
        Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7912), 
        section 1102 of the Food, Conservation, and Energy Act of 2008, 
        or a successor section.
            ``(5) Disaster county.--
                    ``(A) In general.--The term `disaster county' means 
                a county included in the geographic area covered by a 
                qualifying natural disaster declaration.
                    ``(B) Inclusion.--The term `disaster county' 
                includes--
                            ``(i) a county contiguous to a county 
                        described in subparagraph (A); and
                            ``(ii) any farm in which, during a calendar 
                        year, the total loss of production of the farm 
                        relating to weather is greater than 50 percent 
                        of the normal production of the farm, as 
                        determined by the Secretary.
            ``(6) Eligible producer on a farm.--
                    ``(A) In general.--The term `eligible producer on a 
                farm' means an individual or entity described in 
                subparagraph (B) that, as determined by the Secretary, 
                assumes the production and market risks associated with 
                the agricultural production of crops or livestock.
                    ``(B) Description.--An individual or entity 
                referred to in subparagraph (A) is--
                            ``(i) a citizen of the United States;
                            ``(ii) a resident alien;
                            ``(iii) a partnership of citizens of the 
                        United States; or
                            ``(iv) a corporation, limited liability 
                        corporation, or other farm organizational 
                        structure organized under State law.
            ``(7) Farm.--
                    ``(A) In general.--The term `farm' means, in 
                relation to an eligible producer on a farm, the sum of 
                all crop acreage in all counties that is planted or 
                intended to be planted for harvest by the eligible 
                producer.
                    ``(B) Aquaculture.--In the case of aquaculture, the 
                term `farm' means, in relation to an eligible producer 
                on a farm, all fish being produced in all counties that 
                are intended to be harvested for sale by the eligible 
                producer.
                    ``(C) Honey.--In the case of honey, the term `farm' 
                means, in relation to an eligible producer on a farm, 
                all bees and beehives in all counties that are intended 
                to be harvested for a honey crop by the eligible 
                producer.
            ``(8) Farm-raised fish.--The term `farm-raised fish' means 
        any aquatic species that is propagated and reared in a 
        controlled environment.
            ``(9) Insurable commodity.--The term `insurable commodity' 
        means an agricultural commodity (excluding livestock) for which 
        the producer on a farm is eligible to obtain a policy or plan 
        of insurance under the Federal Crop Insurance Act (7 U.S.C. 
        1501 et seq.).
            ``(10) Livestock.--The term `livestock' includes--
                    ``(A) cattle (including dairy cattle);
                    ``(B) bison;
                    ``(C) poultry;
                    ``(D) sheep;
                    ``(E) swine;
                    ``(F) horses; and
                    ``(G) other livestock, as determined by the 
                Secretary.
            ``(11) Noninsurable commodity.--The term `noninsurable 
        commodity' means a crop for which the eligible producers on a 
        farm are eligible to obtain assistance under the noninsured 
        crop assistance program.
            ``(12) Noninsured crop assistance program.--The term 
        `noninsured crop assistance program' means the program carried 
        out under section 196 of the Federal Agriculture Improvement 
        and Reform Act of 1996 (7 U.S.C. 7333).
            ``(13) Qualifying natural disaster declaration.--The term 
        `qualifying natural disaster declaration' means a natural 
        disaster declared by the Secretary for production losses under 
        section 321(a) of the Consolidated Farm and Rural Development 
        Act (7 U.S.C. 1961(a)).
            ``(14) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
            ``(15) Socially disadvantaged farmer or rancher.--The term 
        `socially disadvantaged farmer or rancher' has the meaning 
        given the term in section 2501(e) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)).
            ``(16) State.--The term `State' means--
                    ``(A) a State;
                    ``(B) the District of Columbia;
                    ``(C) the Commonwealth of Puerto Rico; and
                    ``(D) any other territory or possession of the 
                United States.
            ``(17) Trust fund.--The term `Trust Fund' means the 
        Agricultural Disaster Relief Trust Fund established under 
        section 902.
            ``(18) United states.--The term `United States' when used 
        in a geographical sense, means all of the States.
    ``(b) Supplemental Revenue Assistance Payments.--
            ``(1) In general.--The Secretary shall use such sums as are 
        necessary from the Trust Fund to make crop disaster assistance 
        payments to eligible producers on farms in disaster counties 
        that have incurred crop production losses or crop quality 
        losses, or both, during the crop year.
            ``(2) Amount.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary shall provide crop disaster assistance 
                payments under this section to an eligible producer on 
                a farm in an amount equal to 60 percent of the 
                difference between--
                            ``(i) the disaster assistance program 
                        guarantee, as described in paragraph (3); and
                            ``(ii) the total farm revenue for a farm, 
                        as described in paragraph (4).
                    ``(B) Limitation.--The disaster assistance program 
                guarantee for a crop used to calculate the payments for 
                a farm under subparagraph (A)(i) may not be greater 
                than 90 percent of the sum of the expected revenue, as 
                described in paragraph (5) for each of the crops on a 
                farm, as determined by the Secretary.
            ``(3) Supplemental revenue assistance program guarantee.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, the supplemental assistance program 
                guarantee shall be the sum obtained by adding--
                            ``(i) for each insurable commodity on the 
                        farm, 115 percent of the product obtained by 
                        multiplying--
                                    ``(I) a payment rate for the 
                                commodity that is equal to the price 
                                election for the commodity elected by 
                                the eligible producer;
                                    ``(II) the payment acres for the 
                                commodity that is equal to the number 
                                of acres planted, or prevented from 
                                being planted, to the commodity;
                                    ``(III) the payment yield for the 
                                commodity that is equal to the 
                                percentage of the crop insurance yield 
                                elected by the producer of the higher 
                                of--
                                            ``(aa) the adjusted actual 
                                        production history yield; or
                                            ``(bb) the counter-cyclical 
                                        program payment yield for each 
                                        crop; and
                            ``(ii) for each noninsurable commodity on a 
                        farm, 120 percent of the product obtained by 
                        multiplying--
                                    ``(I) a payment rate for the 
                                commodity that is equal to 100 percent 
                                of the noninsured crop assistance 
                                program established price for the 
                                commodity;
                                    ``(II) the payment acres for the 
                                commodity that is equal to the number 
                                of acres planted, or prevented from 
                                being planted, to the commodity; and
                                    ``(III) the payment yield for the 
                                commodity that is equal to the higher 
                                of--
                                            ``(aa) the adjusted 
                                        noninsured crop assistance 
                                        program yield guarantee; or
                                            ``(bb) the counter-cyclical 
                                        program payment yield for each 
                                        crop.
                    ``(B) Adjustment insurance guarantee.--
                Notwithstanding subparagraph (A), in the case of an 
                insurable commodity for which a plan of insurance 
                provides for an adjustment in the guarantee, such as in 
                the case of prevented planting, the adjusted insurance 
                guarantee shall be the basis for determining the 
                disaster assistance program guarantee for the insurable 
                commodity.
                    ``(C) Adjusted assistance level.--Notwithstanding 
                subparagraph (A), in the case of a noninsurable 
                commodity for which the noninsured crop assistance 
                program provides for an adjustment in the level of 
                assistance, such as in the case of unharvested crops, 
                the adjusted assistance level shall be the basis for 
                determining the disaster assistance program guarantee 
                for the noninsurable commodity.
                    ``(D) Equitable treatment for non-yield based 
                policies.--The Secretary shall establish equitable 
                treatment for non-yield based policies and plans of 
                insurance, such as the Adjusted Gross Revenue Lite 
                insurance program.
            ``(4) Farm revenue.--
                    ``(A) In general.--For purposes of this subsection, 
                the total farm revenue for a farm, shall equal the sum 
                obtained by adding--
                            ``(i) the estimated actual value for each 
                        crop produced on a farm by using the product 
                        obtained by multiplying--
                                    ``(I) the actual crop acreage 
                                harvested by an eligible producer on a 
                                farm;
                                    ``(II) the estimated actual yield 
                                of the crop production; and
                                    ``(III) subject to subparagraphs 
                                (B) and (C), to the extent practicable, 
                                the national average market price 
                                received for the marketing year, as 
                                determined by the Secretary;
                            ``(ii) 15 percent of amount of any direct 
                        payments made to the producer under sections 
                        1103 and 1303 of the Food, Conservation, and 
                        Energy Act of 2008 or successor sections;
                            ``(iii) the total amount of any counter-
                        cyclical payments made to the producer under 
                        sections 1104 and 1304 of the Food, 
                        Conservation, and Energy Act of 2008 or 
                        successor sections or of any average crop 
                        revenue election payments made to the producer 
                        under section 1105 of that Act;
                            ``(iv) the total amount of any loan 
                        deficiency payments, marketing loan gains, and 
                        marketing certificate gains made to the 
                        producer under subtitles B and C of the Food, 
                        Conservation, and Energy Act of 2008 or 
                        successor subtitles;
                            ``(v) the amount of payments for prevented 
                        planting on a farm;
                            ``(vi) the amount of crop insurance 
                        indemnities received by an eligible producer on 
                        a farm for each crop on a farm;
                            ``(vii) the amount of payments an eligible 
                        producer on a farm received under the 
                        noninsured crop assistance program for each 
                        crop on a farm; and
                            ``(viii) the value of any other natural 
                        disaster assistance payments provided by the 
                        Federal Government to an eligible producer on a 
                        farm for each crop on a farm for the same loss 
                        for which the eligible producer is seeking 
                        assistance.
                    ``(B) Adjustment.--The Secretary shall adjust the 
                average market price received by the eligible producer 
                on a farm--
                            ``(i) to reflect the average quality 
                        discounts applied to the local or regional 
                        market price of a crop or mechanically 
                        harvested forage due to a reduction in the 
                        intrinsic characteristics of the production 
                        resulting from adverse weather, as determined 
                        annually by the State office of the Farm 
                        Service Agency; and
                            ``(ii) to account for a crop the value of 
                        which is reduced due to excess moisture 
                        resulting from a disaster-related condition.
                    ``(C) Maximum amount for certain crops.--With 
                respect to a crop for which an eligible producer on a 
                farm receives assistance under the noninsured crop 
                assistance program, the national average market price 
                received during the marketing year shall be an amount 
                not more than 100 percent of the price of the crop 
                established under the noninsured crop assistance 
                program.
            ``(5) Expected revenue.--The expected revenue for each crop 
        on a farm shall equal the sum obtained by adding--
                    ``(A) the product obtained by multiplying--
                            ``(i) the greatest of--
                                    ``(I) the adjusted actual 
                                production history yield of the 
                                eligible producer on a farm; and
                                    ``(II) the counter-cyclical program 
                                payment yield;
                            ``(ii) the acreage planted or prevented 
                        from being planted for each crop; and
                            ``(iii) 100 percent of the insurance price 
                        guarantee; and
                    ``(B) the product obtained by multiplying--
                            ``(i) 100 percent of the adjusted 
                        noninsured crop assistance program yield; and
                            ``(ii) 100 percent of the noninsured crop 
                        assistance program price for each of the crops 
                        on a farm.
    ``(c) Livestock Indemnity Payments.--
            ``(1) Payments.--The Secretary shall use such sums as are 
        necessary from the Trust Fund to make livestock indemnity 
        payments to eligible producers on farms that have incurred 
        livestock death losses in excess of the normal mortality due to 
        adverse weather, as determined by the Secretary, during the 
        calendar year, including losses due to hurricanes, floods, 
        blizzards, disease, wildfires, extreme heat, and extreme cold.
            ``(2) Payment rates.--Indemnity payments to an eligible 
        producer on a farm under paragraph (1) shall be made at a rate 
        of 75 percent of the market value of the applicable livestock 
        on the day before the date of death of the livestock, as 
        determined by the Secretary.
    ``(d) Livestock Forage Disaster Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Covered livestock.--
                            ``(i) In general.--The term `covered 
                        livestock' means livestock of an eligible 
                        livestock producer that, during the 60 days 
                        prior to the beginning date of a qualifying 
                        drought or fire condition, as determined by the 
                        Secretary, the eligible livestock producer--
                                    ``(I) owned;
                                    ``(II) leased;
                                    ``(III) purchased;
                                    ``(IV) entered into a contract to 
                                purchase;
                                    ``(V) is a contract grower; or
                                    ``(VI) sold or otherwise disposed 
                                of due to qualifying drought conditions 
                                during--
                                            ``(aa) the current 
                                        production year; or
                                            ``(bb) subject to paragraph 
                                        (3)(B)(ii), 1 or both of the 2 
                                        production years immediately 
                                        preceding the current 
                                        production year.
                            ``(ii) Exclusion.--The term `covered 
                        livestock' does not include livestock that were 
                        or would have been in a feedlot, on the 
                        beginning date of the qualifying drought or 
                        fire condition, as a part of the normal 
                        business operation of the eligible livestock 
                        producer, as determined by the Secretary.
                    ``(B) Drought monitor.--The term `drought monitor' 
                means a system for classifying drought severity 
                according to a range of abnormally dry to exceptional 
                drought, as defined by the Secretary.
                    ``(C) Eligible livestock producer.--
                            ``(i) In general.--The term `eligible 
                        livestock producer' means an eligible producer 
                        on a farm that--
                                    ``(I) is an owner, cash or share 
                                lessee, or contract grower of covered 
                                livestock that provides the pastureland 
                                or grazing land, including cash-leased 
                                pastureland or grazing land, for the 
                                livestock;
                                    ``(II) provides the pastureland or 
                                grazing land for covered livestock, 
                                including cash-leased pastureland or 
                                grazing land that is physically located 
                                in a county affected by drought;
                                    ``(III) certifies grazing loss; and
                                    ``(IV) meets all other eligibility 
                                requirements established under this 
                                subsection.
                            ``(ii) Exclusion.--The term `eligible 
                        livestock producer' does not include an owner, 
                        cash or share lessee, or contract grower of 
                        livestock that rents or leases pastureland or 
                        grazing land owned by another person on a rate-
                        of-gain basis.
                    ``(D) Normal carrying capacity.--The term `normal 
                carrying capacity', with respect to each type of 
                grazing land or pastureland in a county, means the 
                normal carrying capacity, as determined under paragraph 
                (3)(D)(i), that would be expected from the grazing land 
                or pastureland for livestock during the normal grazing 
                period, in the absence of a drought or fire that 
                diminishes the production of the grazing land or 
                pastureland.
                    ``(E) Normal grazing period.--The term `normal 
                grazing period', with respect to a county, means the 
                normal grazing period during the calendar year for the 
                county, as determined under paragraph (3)(D)(i).
            ``(2) Program.--The Secretary shall use such sums as are 
        necessary from the Trust Fund to provide compensation for 
        losses to eligible livestock producers due to grazing losses 
        for covered livestock due to--
                    ``(A) a drought condition, as described in 
                paragraph (3); or
                    ``(B) fire, as described in paragraph (4).
            ``(3) Assistance for losses due to drought conditions.--
                    ``(A) Eligible losses.--
                            ``(i) In general.--An eligible livestock 
                        producer may receive assistance under this 
                        subsection only for grazing losses for covered 
                        livestock that occur on land that--
                                    ``(I) is native or improved 
                                pastureland with permanent vegetative 
                                cover; or
                                    ``(II) is planted to a crop planted 
                                specifically for the purpose of 
                                providing grazing for covered 
                                livestock.
                            ``(ii) Exclusions.--An eligible livestock 
                        producer may not receive assistance under this 
                        subsection for grazing losses that occur on 
                        land used for haying or grazing under the 
                        conservation reserve program established under 
                        subchapter B of chapter 1 of subtitle D of 
                        title XII of the Food Security Act of 1985 (16 
                        U.S.C. 3831 et seq.).
                    ``(B) Monthly payment rate.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the payment rate for assistance 
                        under this paragraph for 1 month shall, in the 
                        case of drought, be equal to 60 percent of the 
                        lesser of--
                                    ``(I) the monthly feed cost for all 
                                covered livestock owned or leased by 
                                the eligible livestock producer, as 
                                determined under subparagraph (C); or
                                    ``(II) the monthly feed cost 
                                calculated by using the normal carrying 
                                capacity of the eligible grazing land 
                                of the eligible livestock producer.
                            ``(ii) Partial compensation.--In the case 
                        of an eligible livestock producer that sold or 
                        otherwise disposed of covered livestock due to 
                        drought conditions in 1 or both of the 2 
                        production years immediately preceding the 
                        current production year, as determined by the 
                        Secretary, the payment rate shall be 80 percent 
                        of the payment rate otherwise calculated in 
                        accordance with clause (i).
                    ``(C) Monthly feed cost.--
                            ``(i) In general.--The monthly feed cost 
                        shall equal the product obtained by 
                        multiplying--
                                    ``(I) 30 days;
                                    ``(II) a payment quantity that is 
                                equal to the feed grain equivalent, as 
                                determined under clause (ii); and
                                    ``(III) a payment rate that is 
                                equal to the corn price per pound, as 
                                determined under clause (iii).
                            ``(ii) Feed grain equivalent.--For purposes 
                        of clause (i)(I), the feed grain equivalent 
                        shall equal--
                                    ``(I) in the case of an adult beef 
                                cow, 15.7 pounds of corn per day; or
                                    ``(II) in the case of any other 
                                type of weight of livestock, an amount 
                                determined by the Secretary that 
                                represents the average number of pounds 
                                of corn per day necessary to feed the 
                                livestock.
                            ``(iii) Corn price per pound.--For purposes 
                        of clause (i)(II), the corn price per pound 
                        shall equal the quotient obtained by dividing--
                                    ``(I) the higher of--
                                            ``(aa) the national average 
                                        corn price per bushel for the 
                                        12-month period immediately 
                                        preceding March 1 of the year 
                                        for which the disaster 
                                        assistance is calculated; or
                                            ``(bb) the national average 
                                        corn price per bushel for the 
                                        24-month period immediately 
                                        preceding that March 1; by
                                    ``(II) 56.
                    ``(D) Normal grazing period and drought monitor 
                intensity.--
                            ``(i) FSA county committee 
                        determinations.--
                                    ``(I) In general.--The Secretary 
                                shall determine the normal carrying 
                                capacity and normal grazing period for 
                                each type of grazing land or 
                                pastureland in the county served by the 
                                applicable committee.
                                    ``(II) Changes.--No change to the 
                                normal carrying capacity or normal 
                                grazing period established for a county 
                                under subclause (I) shall be made 
                                unless the change is requested by the 
                                appropriate State and county Farm 
                                Service Agency committees.
                            ``(ii) Drought intensity.--
                                    ``(I) D2.--An eligible livestock 
                                producer that owns or leases grazing 
                                land or pastureland that is physically 
                                located in a county that is rated by 
                                the U.S. Drought Monitor as having a D2 
                                (severe drought) intensity in any area 
                                of the county for at least 8 
                                consecutive weeks during the normal 
                                grazing period for the county, as 
                                determined by the Secretary, shall be 
                                eligible to receive assistance under 
                                this paragraph in an amount equal to 1 
                                monthly payment using the monthly 
                                payment rate determined under 
                                subparagraph (B).
                                    ``(II) D3.--An eligible livestock 
                                producer that owns or leases grazing 
                                land or pastureland that is physically 
                                located in a county that is rated by 
                                the U.S. Drought Monitor as having at 
                                least a D3 (extreme drought) intensity 
                                in any area of the county at any time 
                                during the normal grazing period for 
                                the county, as determined by the 
                                Secretary, shall be eligible to receive 
                                assistance under this paragraph--
                                            ``(aa) in an amount equal 
                                        to 2 monthly payments using the 
                                        monthly payment rate determined 
                                        under subparagraph (B); or
                                            ``(bb) if the county is 
                                        rated as having a D3 (extreme 
                                        drought) intensity in any area 
                                        of the county for at least 4 
                                        weeks during the normal grazing 
                                        period for the county, or is 
                                        rated as having a D4 
                                        (exceptional drought) intensity 
                                        in any area of the county at 
                                        any time during the normal 
                                        grazing period, in an amount 
                                        equal to 3 monthly payments 
                                        using the monthly payment rate 
                                        determined under subparagraph 
                                        (B).
            ``(4) Assistance for losses due to fire on public managed 
        land.--
                    ``(A) In general.--An eligible livestock producer 
                may receive assistance under this paragraph only if--
                            ``(i) the grazing losses occur on rangeland 
                        that is managed by a Federal agency; and
                            ``(ii) the eligible livestock producer is 
                        prohibited by the Federal agency from grazing 
                        the normal permitted livestock on the managed 
                        rangeland due to a fire.
                    ``(B) Payment rate.--The payment rate for 
                assistance under this paragraph shall be equal to 50 
                percent of the monthly feed cost for the total number 
                of livestock covered by the Federal lease of the 
                eligible livestock producer, as determined under 
                paragraph (3)(C).
                    ``(C) Payment duration.--
                            ``(i) In general.--Subject to clause (ii), 
                        an eligible livestock producer shall be 
                        eligible to receive assistance under this 
                        paragraph for the period--
                                    ``(I) beginning on the date on 
                                which the Federal agency excludes the 
                                eligible livestock producer from using 
                                the managed rangeland for grazing; and
                                    ``(II) ending on the last day of 
                                the Federal lease of the eligible 
                                livestock producer.
                            ``(ii) Limitation.--An eligible livestock 
                        producer may only receive assistance under this 
                        paragraph for losses that occur on not more 
                        than 180 days per year.
            ``(5) Minimum risk management purchase requirements.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, a livestock producer shall only be 
                eligible for assistance under this subsection if the 
                livestock producer--
                            ``(i) obtained a policy or plan of 
                        insurance under the Federal Crop Insurance Act 
                        (7 U.S.C. 1501 et seq.) for the grazing land 
                        incurring the losses for which assistance is 
                        being requested; or
                            ``(ii) filed the required paperwork, and 
                        paid the administrative fee by the applicable 
                        State filing deadline, for the noninsured crop 
                        assistance program for the grazing land 
                        incurring the losses for which assistance is 
                        being requested.
                    ``(B) Waiver for socially disadvantaged, limited 
                resource, or beginning farmer or rancher.--In the case 
                of an eligible livestock producer that is a socially 
                disadvantaged farmer or rancher or limited resource or 
                beginning farmer or rancher, as determined by the 
                Secretary, the Secretary may--
                            ``(i) waive subparagraph (A); and
                            ``(ii) provide disaster assistance under 
                        this section at a level that the Secretary 
                        determines to be equitable and appropriate.
                    ``(C) Waiver for 2008 calendar year.--In the case 
                of an eligible livestock producer that suffered losses 
                on grazing land during the 2008 calendar year but does 
                not meet the requirements of subparagraph (A), the 
                Secretary shall waive subparagraph (A) if the eligible 
                livestock producer pays a fee in an amount equal to the 
                applicable noninsured crop assistance program fee or 
                catastrophic risk protection plan fee required under 
                subparagraph (A) to the Secretary not later than 90 
                days after the date of enactment of this subtitle.
                    ``(D) Equitable relief.--
                            ``(i) In general.--The Secretary may 
                        provide equitable relief to an eligible 
                        livestock producer that is otherwise ineligible 
                        or unintentionally fails to meet the 
                        requirements of subparagraph (A) for the 
                        grazing land incurring the loss on a case-by-
                        case basis, as determined by the Secretary.
                            ``(ii) 2008 calendar year.--In the case of 
                        an eligible livestock producer that suffered 
                        losses on grazing land during the 2008 calendar 
                        year, the Secretary shall take special 
                        consideration to provide equitable relief in 
                        cases in which the eligible livestock producer 
                        failed to meet the requirements of subparagraph 
                        (A) due to the enactment of this title after 
                        the closing date of sales periods for crop 
                        insurance under the Federal Crop Insurance Act 
                        (7 U.S.C. 1501 et seq.) and the noninsured crop 
                        assistance program.
            ``(6) No duplicative payments.--
                    ``(A) In general.--An eligible livestock producer 
                may elect to receive assistance for grazing or pasture 
                feed losses due to drought conditions under paragraph 
                (3) or fire under paragraph (4), but not both for the 
                same loss, as determined by the Secretary.
                    ``(B) Relationship to supplemental revenue 
                assistance.--An eligible livestock producer that 
                receives assistance under this subsection may not also 
                receive assistance for losses to crops on the same land 
                with the same intended use under subsection (b).
    ``(e) Emergency Assistance for Livestock, Honey Bees, and Farm-
Raised Fish.--
            ``(1) In general.--The Secretary shall use up to 
        $50,000,000 per year from the Trust Fund to provide emergency 
        relief to eligible producers of livestock, honey bees, and 
        farm-raised fish to aid in the reduction of losses due to 
        disease, adverse weather, or other conditions, such as 
        blizzards and wildfires, as determined by the Secretary, that 
        are not covered under subsection (b), (c), or (d).
            ``(2) Use of funds.--Funds made available under this 
        subsection shall be used to reduce losses caused by feed or 
        water shortages, disease, or other factors as determined by the 
        Secretary.
            ``(3) Availability of funds.--Any funds made available 
        under this subsection shall remain available until expended.
    ``(f) Tree Assistance Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible orchardist.--The term `eligible 
                orchardist' means a person that produces annual crops 
                from trees for commercial purposes.
                    ``(B) Natural disaster.--The term `natural 
                disaster' means plant disease, insect infestation, 
                drought, fire, freeze, flood, earthquake, lightning, or 
                other occurrence, as determined by the Secretary.
                    ``(C) Nursery tree grower.--The term `nursery tree 
                grower' means a person who produces nursery, 
                ornamental, fruit, nut, or Christmas trees for 
                commercial sale, as determined by the Secretary.
                    ``(D) Tree.--The term `tree' includes a tree, bush, 
                and vine.
            ``(2) Eligibility.--
                    ``(A) Loss.--Subject to subparagraph (B), the 
                Secretary shall provide assistance--
                            ``(i) under paragraph (3) to eligible 
                        orchardists and nursery tree growers that 
                        planted trees for commercial purposes but lost 
                        the trees as a result of a natural disaster, as 
                        determined by the Secretary; and
                            ``(ii) under paragraph (3)(B) to eligible 
                        orchardists and nursery tree growers that have 
                        a production history for commercial purposes on 
                        planted or existing trees but lost the trees as 
                        a result of a natural disaster, as determined 
                        by the Secretary.
                    ``(B) Limitation.--An eligible orchardist or 
                nursery tree grower shall qualify for assistance under 
                subparagraph (A) only if the tree mortality of the 
                eligible orchardist or nursery tree grower, as a result 
                of damaging weather or related condition, exceeds 15 
                percent (adjusted for normal mortality).
            ``(3) Assistance.--Subject to paragraph (4), the assistance 
        provided by the Secretary to eligible orchardists and nursery 
        tree growers for losses described in paragraph (2) shall 
        consist of--
                    ``(A)(i) reimbursement of 70 percent of the cost of 
                replanting trees lost due to a natural disaster, as 
                determined by the Secretary, in excess of 15 percent 
                mortality (adjusted for normal mortality); or
                    ``(ii) at the option of the Secretary, sufficient 
                seedlings to reestablish a stand; and
                    ``(B) reimbursement of 50 percent of the cost of 
                pruning, removal, and other costs incurred by an 
                eligible orchardist or nursery tree grower to salvage 
                existing trees or, in the case of tree mortality, to 
                prepare the land to replant trees as a result of damage 
                or tree mortality due to a natural disaster, as 
                determined by the Secretary, in excess of 15 percent 
                damage or mortality (adjusted for normal tree damage 
                and mortality).
            ``(4) Limitations on assistance.--
                    ``(A) Definitions of legal entity and person.--In 
                this paragraph, the terms `legal entity' and `person' 
                have the meaning given those terms in section 1001(a) 
                of the Food Security Act of 1985 (7 U.S.C. 1308(a) (as 
                amended by section 1603 of the Food, Conservation, and 
                Energy Act of 2008).
                    ``(B) Amount.--The total amount of payments 
                received, directly or indirectly, by a person or legal 
                entity (excluding a joint venture or general 
                partnership) under this subsection may not exceed 
                $100,000 for any crop year, or an equivalent value in 
                tree seedlings.
                    ``(C) Acres.--The total quantity of acres planted 
                to trees or tree seedlings for which a person or legal 
                entity shall be entitled to receive payments under this 
                subsection may not exceed 500 acres.
    ``(g) Risk Management Purchase Requirement.--
            ``(1) In general.--Except as otherwise provided in this 
        section, the eligible producers on a farm shall not be eligible 
        for assistance under this section (other than subsection (c)) 
        if the eligible producers on the farm--
                    ``(A) in the case of each insurable commodity of 
                the eligible producers on the farm, did not obtain a 
                policy or plan of insurance under the Federal Crop 
                Insurance Act (7 U.S.C. 1501 et seq.) (excluding a crop 
                insurance pilot program under that Act); or
                    ``(B) in the case of each noninsurable commodity of 
                the eligible producers on the farm, did not file the 
                required paperwork, and pay the administrative fee by 
                the applicable State filing deadline, for the 
                noninsured crop assistance program.
            ``(2) Minimum.--To be considered to have obtained insurance 
        under paragraph (1)(A), an eligible producer on a farm shall 
        have obtained a policy or plan of insurance with not less than 
        50 percent yield coverage at 55 percent of the insurable price 
        for each crop grazed, planted, or intended to be planted for 
        harvest on a whole farm.
            ``(3) Waiver for socially disadvantaged, limited resource, 
        or beginning farmer or rancher.--With respect to eligible 
        producers that are socially disadvantaged farmers or ranchers 
        or limited resource or beginning farmers or ranchers, as 
        determined by the Secretary, the Secretary may--
                    ``(A) waive paragraph (1); and
                    ``(B) provide disaster assistance under this 
                section at a level that the Secretary determines to be 
                equitable and appropriate.
            ``(4) Waiver for 2008 crop year.--In the case of an 
        eligible producer that suffered losses in an insurable 
        commodity or noninsurable commodity during the 2008 crop year 
        but does not meet the requirements of paragraph (1), the 
        Secretary shall waive paragraph (1) if the eligible producer 
        pays a fee in an amount equal to the applicable noninsured crop 
        assistance program fee or catastrophic risk protection plan fee 
        required under paragraph (1) to the Secretary not later than 90 
        days after the date of enactment of this subtitle.
            ``(5) Equitable relief.--
                    ``(A) In general.--The Secretary may provide 
                equitable relief to eligible producers on a farm that 
                are otherwise ineligible or unintentionally fail to 
                meet the requirements of paragraph (1) for 1 or more 
                crops on a farm on a case-by-case basis, as determined 
                by the Secretary.
                    ``(B) 2008 crop year.--In the case of eligible 
                producers on a farm that suffered losses in an 
                insurable commodity or noninsurable commodity during 
                the 2008 crop year, the Secretary shall take special 
                consideration to provide equitable relief in cases in 
                which the eligible producers failed to meet the 
                requirements of paragraph (1) due to the enactment of 
                this title after the closing date of sales periods for 
                crop insurance under the Federal Crop Insurance Act (7 
                U.S.C. 1501 et seq.) and the noninsured crop assistance 
                program.
    ``(h) Payment Limitations.--
            ``(1) Definitions of legal entity and person.--In this 
        subsection, the terms `legal entity' and `person' have the 
        meaning given those terms in section 1001(a) of the Food 
        Security Act of 1985 (7 U.S.C. 1308(a) (as amended by section 
        1603 of the Food, Conservation, and Energy Act of 2008).
            ``(2) Amount.--The total amount of disaster assistance 
        payments received, directly or indirectly, by a person or legal 
        entity (excluding a joint venture or general partnership) under 
        this section (excluding payments received under subsection (f)) 
        may not exceed $100,000 for any crop year.
            ``(3) AGI limitation.--Section 1001D of the Food Security 
        Act of 1985 (7 U.S.C. 1308-3a) or any successor provision shall 
        apply with respect to assistance provided under this section.
            ``(4) Direct attribution.--Subsections (e) and (f) of 
        section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) 
        or any successor provisions relating to direct attribution 
        shall apply with respect to assistance provided under this 
        section.
    ``(i) Period of Effectiveness.--This section shall be effective 
only for losses that are incurred as the result of a disaster, adverse 
weather, or other environmental condition that occurs on or before 
September 30, 2011, as determined by the Secretary.
    ``(j) No Duplicative Payments.--In implementing any other program 
which makes disaster assistance payments (except for indemnities made 
under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.)) and 
section 196 of the Federal Agriculture Improvement and Reform Act of 
1996), the Secretary shall prevent duplicative payments with respect to 
the same loss for which a person receives a payment under subsections 
(b), (c), (d), (e), or (f).

``SEC. 902. AGRICULTURAL DISASTER RELIEF TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Agricultural 
Disaster Relief Trust Fund', consisting of such amounts as may be 
appropriated or credited to such Trust Fund as provided in this 
section.
    ``(b) Transfer to Trust Fund.--
            ``(1) In general.--There are appropriated to the 
        Agricultural Disaster Relief Trust Fund amounts equivalent to 
        3.08 percent of the amounts received in the general fund of the 
        Treasury of the United States during fiscal years 2008 through 
        2011 attributable to the duties collected on articles entered, 
        or withdrawn from warehouse, for consumption under the 
        Harmonized Tariff Schedule of the United States.
            ``(2) Amounts based on estimates.--The amounts appropriated 
        under this section shall be transferred at least monthly from 
        the general fund of the Treasury of the United States to the 
        Agricultural Disaster Relief Trust Fund on the basis of 
        estimates made by the Secretary of the Treasury. Proper 
        adjustments shall be made in the amounts subsequently 
        transferred to the extent prior estimates were in excess of or 
        less than the amounts required to be transferred.
            ``(3) Limitation on transfers to agricultural disaster 
        relief trust fund.--No amount may be appropriated to the 
        Agricultural Disaster Relief Trust Fund on and after the date 
        of any expenditure from the Agricultural Disaster Relief Trust 
        Fund which is not permitted by this section. The determination 
        of whether an expenditure is so permitted shall be made without 
        regard to--
                    ``(A) any provision of law which is not contained 
                or referenced in this title or in a revenue Act, and
                    ``(B) whether such provision of law is a 
                subsequently enacted provision or directly or 
                indirectly seeks to waive the application of this 
                paragraph.
    ``(c) Administration.--
            ``(1) Reports.--The Secretary of the Treasury shall be the 
        trustee of the Agricultural Disaster Relief Trust Fund and 
        shall submit an annual report to Congress each year on the 
        financial condition and the results of the operations of such 
        Trust Fund during the preceding fiscal year and on its expected 
        condition and operations during the 4 fiscal years succeeding 
        such fiscal year. Such report shall be printed as a House 
        document of the session of Congress to which the report is 
        made.
            ``(2) Investment.--
                    ``(A) In general.--The Secretary of the Treasury 
                shall invest such portion of the Agricultural Disaster 
                Relief Trust Fund as is not in his judgment required to 
                meet current withdrawals. Such investments may be made 
                only in interest bearing obligations of the United 
                States. For such purpose, such obligations may be 
                acquired--
                            ``(i) on original issue at the issue price, 
                        or
                            ``(ii) by purchase of outstanding 
                        obligations at the market price.
                    ``(B) Sale of obligations.--Any obligation acquired 
                by the Agricultural Disaster Relief Trust Fund may be 
                sold by the Secretary of the Treasury at the market 
                price.
                    ``(C) Interest on certain proceeds.--The interest 
                on, and the proceeds from the sale or redemption of, 
                any obligations held in the Agricultural Disaster 
                Relief Trust Fund shall be credited to and form a part 
                of such Trust Fund.
    ``(d) Expenditures From Trust Fund.--Amounts in the Agricultural 
Disaster Relief Trust Fund shall be available for the purposes of 
making expenditures to meet those obligations of the United States 
incurred under section 901 or section 531 of the Federal Crop Insurance 
Act (as such sections are in effect on the date of the enactment of the 
Food, Conservation, and Energy Act of 2008).
    ``(e) Authority To Borrow.--
            ``(1) In general.--There are authorized to be appropriated, 
        and are appropriated, to the Agricultural Disaster Relief Trust 
        Fund, as repayable advances, such sums as may be necessary to 
        carry out the purposes of such Trust Fund.
            ``(2) Repayment of advances.--
                    ``(A) In general.--Advances made to the 
                Agricultural Disaster Relief Trust Fund shall be 
                repaid, and interest on such advances shall be paid, to 
                the general fund of the Treasury when the Secretary 
                determines that moneys are available for such purposes 
                in such Trust Fund.
                    ``(B) Rate of interest.--Interest on advances made 
                pursuant to this subsection shall be--
                            ``(i) at a rate determined by the Secretary 
                        of the Treasury (as of the close of the 
                        calendar month preceding the month in which the 
                        advance is made) to be equal to the current 
                        average market yield on outstanding marketable 
                        obligations of the United States with remaining 
                        periods to maturity comparable to the 
                        anticipated period during which the advance 
                        will be outstanding, and
                            ``(ii) compounded annually.

``SEC. 903. JURISDICTION.

    ``Legislation in the Senate of the United States amending section 
901 or 902 shall be referred to the Committee on Finance of the 
Senate.''.
    (b) Transition.--For purposes of the 2008 crop year, the Secretary 
shall carry out subsections (f)(4) and (h) of section 901 of the Trade 
Act of 1974 (as added by subsection (a)) in accordance with the terms 
and conditions of sections 1001 through 1001D of the Food Security Act 
of 1985 (16 U.S.C. 1308 et seq.), as in effect on September 30, 2007.
    (c) Clerical Amendment.--The table of contents for the Trade Act of 
1974 (19 U.S.C. 2101 et seq.) is amended by adding at the end the 
following:

       ``TITLE IX--SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE

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

        Subtitle B--Revenue Provisions for Agriculture Programs

SEC. 15201. CUSTOMS USER FEES.

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

SEC. 15202. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

    The percentage under subparagraph (B) of section 401(1) of the Tax 
Increase Prevention and Reconciliation Act of 2005 in effect on the 
date of the enactment of this Act is increased by 7.75 percentage 
points.

                       Subtitle C--Tax Provisions

                          PART I--CONSERVATION

          Subpart A--Land and Species Preservation Provisions

SEC. 15301. EXCLUSION OF CONSERVATION RESERVE PROGRAM PAYMENTS FROM 
              SECA TAX FOR CERTAIN INDIVIDUALS.

    (a) Internal Revenue Code.--Section 1402(a)(1) (defining net 
earnings from self-employment) is amended by inserting ``, and 
including payments under section 1233(2) of the Food Security Act of 
1985 (16 U.S.C. 3833(2)) to individuals receiving benefits under 
section 202 or 223 of the Social Security Act'' after ``crop shares''.
    (b) Social Security Act.--Section 211(a)(1) of the Social Security 
Act is amended by inserting ``, and including payments under section 
1233(2) of the Food Security Act of 1985 (16 U.S.C. 3833(2)) to 
individuals receiving benefits under section 202 or 223'' after ``crop 
shares''.
    (c) Effective Date.--The amendments made by this section shall 
apply to payments made after December 31, 2007.

SEC. 15302. TWO-YEAR EXTENSION OF SPECIAL RULE ENCOURAGING 
              CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY FOR 
              CONSERVATION PURPOSES.

    (a) In General.--
            (1) Individuals.--Section 170(b)(1)(E)(vi) (relating to 
        termination) is amended by striking ``December 31, 2007'' and 
        inserting ``December 31, 2009''.
            (2) Corporations.--Section 170(b)(2)(B)(iii) (relating to 
        termination) is amended by striking ``December 31, 2007'' and 
        inserting ``December 31, 2009''.
    (b) Effective Date.--The amendments made by this section shall 
apply to contributions made in taxable years beginning after December 
31, 2007.

SEC. 15303. DEDUCTION FOR ENDANGERED SPECIES RECOVERY EXPENDITURES.

    (a) Deduction for Endangered Species Recovery Expenditures.--
            (1) In general.--Paragraph (1) of section 175(c) (relating 
        to definitions) is amended by inserting after the first 
        sentence the following new sentence: ``Such term shall include 
        expenditures paid or incurred for the purpose of achieving 
        site-specific management actions recommended in recovery plans 
        approved pursuant to the Endangered Species Act of 1973.''.
            (2) Conforming amendments.--
                    (A) Section 175 is amended by inserting ``, or for 
                endangered species recovery'' after ``prevention of 
                erosion of land used in farming'' each place it appears 
                in subsections (a) and (c).
                    (B) The heading of section 175 is amended by 
                inserting ``; endangered species recovery 
                expenditures'' before the period.
                    (C) The item relating to section 175 in the table 
                of sections for part VI of subchapter B of chapter 1 is 
                amended by inserting ``; endangered species recovery 
                expenditures'' before the period.
    (b) Limitations.--Paragraph (3) of section 175(c) (relating to 
additional limitations) is amended--
            (1) in the heading of subparagraph (A), by inserting ``or 
        endangered species recovery plan'' after ``conservation plan'', 
        and
            (2) in subparagraph (A)(i), by inserting ``or the recovery 
        plan approved pursuant to the Endangered Species Act of 1973'' 
        after ``Department of Agriculture''.
    (c) Effective Date.--The amendments made by this section shall 
apply to expenditures paid or incurred after December 31, 2008.

                      Subpart B--Timber Provisions

SEC. 15311. TEMPORARY REDUCTION IN RATE OF TAX ON QUALIFIED TIMBER GAIN 
              OF CORPORATIONS.

    (a) In General.--Section 1201 (relating to alternative tax for 
corporations) is amended by redesignating subsection (b) as subsection 
(c) and by adding after subsection (a) the following new subsection:
    ``(b) Special Rate for Qualified Timber Gains.--
            ``(1) In general.--If, for any taxable year ending after 
        the date of the enactment of the Food, Conservation, and Energy 
        Act of 2008 and beginning on or before the date which is 1 year 
        after such date, a corporation has both a net capital gain and 
        qualified timber gain--
                    ``(A) subsection (a) shall apply to such 
                corporation for the taxable year without regard to 
                whether the applicable tax rate exceeds 35 percent, and
                    ``(B) the tax computed under subsection (a)(2) 
                shall be equal to the sum of--
                            ``(i) 15 percent of the least of--
                                    ``(I) qualified timber gain,
                                    ``(II) net capital gain, or
                                    ``(III) taxable income, plus
                            ``(ii) 35 percent of the excess (if any) of 
                        taxable income over the sum of the amounts for 
                        which a tax was determined under subsection 
                        (a)(1) and clause (i).
            ``(2) Qualified timber gain.--For purposes of this section, 
        the term `qualified timber gain' means, with respect to any 
        taxpayer for any taxable year, the excess (if any) of--
                    ``(A) the sum of the taxpayer's gains described in 
                subsections (a) and (b) of section 631 for such year, 
                over
                    ``(B) the sum of the taxpayer's losses described in 
                such subsections for such year.
        For purposes of subparagraphs (A) and (B), only timber held 
        more than 15 years shall be taken into account.
            ``(3) Computation for taxable years in which rate first 
        applies or ends.--In the case of any taxable year which 
        includes either of the dates set forth in paragraph (1), the 
        qualified timber gain for such year shall not exceed the 
        qualified timber gain properly taken into account for--
                    ``(A) in the case of the taxable year including the 
                date of the enactment of the Food, Conservation, and 
                Energy Act of 2008, the portion of the year after such 
                date, and
                    ``(B) in the case of the taxable year including the 
                date which is 1 year after such date of enactment, the 
                portion of the year on or before such later date.''.
    (b) Minimum Tax.--Subsection (b) of section 55 is amended by adding 
at the end the following paragraph:
            ``(4) Maximum rate of tax on qualified timber gain of 
        corporations.--In the case of any taxable year to which section 
        1201(b) applies, the amount determined under clause (i) of 
        subparagraph (B) shall not exceed the sum of--
                    ``(A) 20 percent of so much of the taxable excess 
                (if any) as exceeds the qualified timber gain (or, if 
                less, the net capital gain), plus
                    ``(B) 15 percent of the taxable excess in excess of 
                the amount on which a tax is determined under 
                subparagraph (A).
        Any term used in this paragraph which is also used in section 
        1201 shall have the meaning given such term by such section, 
        except to the extent such term is subject to adjustment under 
        this part.''.
    (c) Conforming Amendment.--Section 857(b)(3)(A)(ii) is amended by 
striking ``rate'' and inserting ``rates''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of enactment.

SEC. 15312. TIMBER REIT MODERNIZATION.

    (a) In General.--Section 856(c)(5) is amended by adding after 
subparagraph (G) the following new subparagraph:
                    ``(H) Treatment of timber gains.--
                            ``(i) In general.--Gain from the sale of 
                        real property described in paragraph (2)(D) and 
                        (3)(C) shall include gain which is--
                                    ``(I) recognized by an election 
                                under section 631(a) from timber owned 
                                by the real estate investment trust, 
                                the cutting of which is provided by a 
                                taxable REIT subsidiary of the real 
                                estate investment trust;
                                    ``(II) recognized under section 
                                631(b); or
                                    ``(III) income which would 
                                constitute gain under subclause (I) or 
                                (II) but for the failure to meet the 1-
                                year holding period requirement.
                            ``(ii) Special rules.--
                                    ``(I) For purposes of this 
                                subtitle, cut timber, the gain from 
                                which is recognized by a real estate 
                                investment trust pursuant to an 
                                election under section 631(a) described 
                                in clause (i)(I) or so much of clause 
                                (i)(III) as relates to clause (i)(I), 
                                shall be deemed to be sold to the 
                                taxable REIT subsidiary of the real 
                                estate investment trust on the first 
                                day of the taxable year.
                                    ``(II) For purposes of this 
                                subtitle, income described in this 
                                subparagraph shall not be treated as 
                                gain from the sale of property 
                                described in section 1221(a)(1).
                            ``(iii) Termination.--This subparagraph 
                        shall not apply to dispositions after the 
                        termination date.''.
    (b) Termination Date.--Subsection (c) of section 856 is amended by 
adding at the end the following new paragraph:
            ``(8) Termination date.--For purposes of this subsection, 
        the term `termination date' means, with respect to any 
        taxpayer, the last day of the taxpayer's first taxable year 
        beginning after the date of the enactment of this paragraph and 
        before the date that is 1 year after such date of enactment.''.
    (c) Effective Date.--The amendments made by subsection (a) shall 
apply to dispositions in taxable years beginning after the date of the 
enactment of this Act.

SEC. 15313. MINERAL ROYALTY INCOME QUALIFYING INCOME FOR TIMBER REITS.

    (a) In General.--Section 856(c)(2) is amended by striking ``and'' 
at the end of subparagraph (G), by inserting ``and'' at the end of 
subparagraph (H), and by adding after subparagraph (H) the following 
new subparagraph:
                    ``(I) mineral royalty income earned in the first 
                taxable year beginning after the date of the enactment 
                of this subparagraph from real property owned by a 
                timber real estate investment trust and held, or once 
                held, in connection with the trade or business of 
                producing timber by such real estate investment 
                trust;''.
    (b) Timber Real Estate Investment Trust.--Section 856(c)(5), as 
amended by this Act, is amended by adding after subparagraph (H) the 
following new subparagraph:
                    ``(I) Timber real estate investment trust.--The 
                term `timber real estate investment trust' means a real 
                estate investment trust in which more than 50 percent 
                in value of its total assets consists of real property 
                held in connection with the trade or business of 
                producing timber.''.
    (c) Effective Date.--The amendments by this section shall apply to 
taxable years beginning after the date of the enactment of this Act.

SEC. 15314. MODIFICATION OF TAXABLE REIT SUBSIDIARY ASSET TEST FOR 
              TIMBER REITS.

    (a) In General.--Section 856(c)(4)(B)(ii) is amended by inserting 
``(in the case of a quarter which closes on or before the termination 
date, 25 percent in the case of a timber real estate investment 
trust)'' after ``REIT subsidiaries''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 15315. SAFE HARBOR FOR TIMBER PROPERTY.

    (a) In General.--Section 857(b)(6) (relating to income from 
prohibited transactions) is amended by adding at the end the following 
new subparagraph:
                    ``(G) Special rules for sales to qualified 
                organizations.--
                            ``(i) In general.--In the case of the sale 
                        of a real estate asset (as defined in section 
                        856(c)(5)(B)) to a qualified organization (as 
                        defined in section 170(h)(3)) exclusively for 
                        conservation purposes (within the meaning of 
                        section 170(h)(1)(C)), subparagraph (D) shall 
                        be applied--
                                    ``(I) by substituting `2 years' for 
                                `4 years' in clause (i), and
                                    ``(II) by substituting `2-year 
                                period' for `4-year period' in clauses 
                                (ii) and (iii).
                            ``(ii) Termination.--This subparagraph 
                        shall not apply to sales after the termination 
                        date.''.
    (b) Prohibited Transactions.--Section 857(b)(6)(D)(v) is amended by 
inserting ``, or, in the case of a sale on or before the termination 
date, a taxable REIT subsidiary'' after ``any income''.
    (c) Sales That Are Not Prohibited Transactions.--Section 857(b)(6), 
as amended by subsection (a), is amended by adding at the end the 
following new subparagraph:
                    ``(H) Sales of property that are not a prohibited 
                transaction.--In the case of a sale on or before the 
                termination date, the sale of property which is not a 
                prohibited transaction through the application of 
                subparagraph (D) shall be considered property held for 
                investment or for use in a trade or business and not 
                property described in section 1221(a)(1) for all 
                purposes of this subtitle.''.
    (d) Termination Date.--Section 857(b)(6), as amended by subsections 
(a) and (c), is amended by adding at the end the following new 
subparagraph:
                    ``(I) Termination date.--For purposes of this 
                paragraph, the term `termination date' has the meaning 
                given such term by section 856(c)(8).''.
    (e) Effective Date.--The amendments made by this section shall 
apply to dispositions in taxable years beginning after the date of the 
enactment of this Act.

SEC. 15316. QUALIFIED FORESTRY CONSERVATION BONDS.

    (a) In General.--Part IV of subchapter A of chapter 1 (relating to 
credits against tax) is amended by adding at the end the following new 
subpart:

                ``Subpart I--Qualified Tax Credit Bonds

``Sec. 54A. Credit to holders of qualified tax credit bonds.
``Sec. 54B. Qualified forestry conservation bonds.

``SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS.

    ``(a) Allowance of Credit.--If a taxpayer holds a qualified tax 
credit bond on one or more credit allowance dates of the bond during 
any taxable year, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount equal to the sum 
of the credits determined under subsection (b) with respect to such 
dates.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit determined 
        under this subsection with respect to any credit allowance date 
        for a qualified tax credit bond is 25 percent of the annual 
        credit determined with respect to such bond.
            ``(2) Annual credit.--The annual credit determined with 
        respect to any qualified tax credit bond is the product of--
                    ``(A) the applicable credit rate, multiplied by
                    ``(B) the outstanding face amount of the bond.
            ``(3) Applicable credit rate.--For purposes of paragraph 
        (2), the applicable credit rate is the rate which the Secretary 
        estimates will permit the issuance of qualified tax credit 
        bonds with a specified maturity or redemption date without 
        discount and without interest cost to the qualified issuer. The 
        applicable credit rate with respect to any qualified tax credit 
        bond shall be determined as of the first day on which there is 
        a binding, written contract for the sale or exchange of the 
        bond.
            ``(4) Special rule for issuance and redemption.--In the 
        case of a bond which is issued during the 3-month period ending 
        on a credit allowance date, the amount of the credit determined 
        under this subsection with respect to such credit allowance 
        date shall be a ratable portion of the credit otherwise 
        determined based on the portion of the 3-month period during 
        which the bond is outstanding. A similar rule shall apply when 
        the bond is redeemed or matures.
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                part (other than subpart C and this subpart).
            ``(2) Carryover of unused credit.--If the credit allowable 
        under subsection (a) exceeds the limitation imposed by 
        paragraph (1) for such taxable year, such excess shall be 
        carried to the succeeding taxable year and added to the credit 
        allowable under subsection (a) for such taxable year 
        (determined before the application of paragraph (1) for such 
        succeeding taxable year).
    ``(d) Qualified Tax Credit Bond.--For purposes of this section--
            ``(1) Qualified tax credit bond.--The term `qualified tax 
        credit bond' means a qualified forestry conservation bond which 
        is part of an issue that meets the requirements of paragraphs 
        (2), (3), (4), (5), and (6).
            ``(2) Special rules relating to expenditures.--
                    ``(A) In general.--An issue shall be treated as 
                meeting the requirements of this paragraph if, as of 
                the date of issuance, the issuer reasonably expects--
                            ``(i) 100 percent or more of the available 
                        project proceeds to be spent for 1 or more 
                        qualified purposes within the 3-year period 
                        beginning on such date of issuance, and
                            ``(ii) a binding commitment with a third 
                        party to spend at least 10 percent of such 
                        available project proceeds will be incurred 
                        within the 6-month period beginning on such 
                        date of issuance.
                    ``(B) Failure to spend required amount of bond 
                proceeds within 3 years.--
                            ``(i) In general.--To the extent that less 
                        than 100 percent of the available project 
                        proceeds of the issue are expended by the close 
                        of the expenditure period for 1 or more 
                        qualified purposes, the issuer shall redeem all 
                        of the nonqualified bonds within 90 days after 
                        the end of such period. For purposes of this 
                        paragraph, the amount of the nonqualified bonds 
                        required to be redeemed shall be determined in 
                        the same manner as under section 142.
                            ``(ii) Expenditure period.--For purposes of 
                        this subpart, the term `expenditure period' 
                        means, with respect to any issue, the 3-year 
                        period beginning on the date of issuance. Such 
                        term shall include any extension of such period 
                        under clause (iii).
                            ``(iii) Extension of period.--Upon 
                        submission of a request prior to the expiration 
                        of the expenditure period (determined without 
                        regard to any extension under this clause), the 
                        Secretary may extend such period if the issuer 
                        establishes that the failure to expend the 
                        proceeds within the original expenditure period 
                        is due to reasonable cause and the expenditures 
                        for qualified purposes will continue to proceed 
                        with due diligence.
                    ``(C) Qualified purpose.--For purposes of this 
                paragraph, the term `qualified purpose' means a purpose 
                specified in section 54B(e).
                    ``(D) Reimbursement.--For purposes of this 
                subtitle, available project proceeds of an issue shall 
                be treated as spent for a qualified purpose if such 
                proceeds are used to reimburse the issuer for amounts 
                paid for a qualified purpose after the date that the 
                Secretary makes an allocation of bond limitation with 
                respect to such issue, but only if--
                            ``(i) prior to the payment of the original 
                        expenditure, the issuer declared its intent to 
                        reimburse such expenditure with the proceeds of 
                        a qualified tax credit bond,
                            ``(ii) not later than 60 days after payment 
                        of the original expenditure, the issuer adopts 
                        an official intent to reimburse the original 
                        expenditure with such proceeds, and
                            ``(iii) the reimbursement is made not later 
                        than 18 months after the date the original 
                        expenditure is paid.
            ``(3) Reporting.--An issue shall be treated as meeting the 
        requirements of this paragraph if the issuer of qualified tax 
        credit bonds submits reports similar to the reports required 
        under section 149(e).
            ``(4) Special rules relating to arbitrage.--
                    ``(A) In general.--An issue shall be treated as 
                meeting the requirements of this paragraph if the 
                issuer satisfies the requirements of section 148 with 
                respect to the proceeds of the issue.
                    ``(B) Special rule for investments during 
                expenditure period.--An issue shall not be treated as 
                failing to meet the requirements of subparagraph (A) by 
                reason of any investment of available project proceeds 
                during the expenditure period.
                    ``(C) Special rule for reserve funds.--An issue 
                shall not be treated as failing to meet the 
                requirements of subparagraph (A) by reason of any fund 
                which is expected to be used to repay such issue if--
                            ``(i) such fund is funded at a rate not 
                        more rapid than equal annual installments,
                            ``(ii) such fund is funded in a manner 
                        reasonably expected to result in an amount not 
                        greater than an amount necessary to repay the 
                        issue, and
                            ``(iii) the yield on such fund is not 
                        greater than the discount rate determined under 
                        paragraph (5)(B) with respect to the issue.
            ``(5) Maturity limitation.--
                    ``(A) In general.--An issue shall be treated as 
                meeting the requirements of this paragraph if the 
                maturity of any bond which is part of such issue does 
                not exceed the maximum term determined by the Secretary 
                under subparagraph (B).
                    ``(B) Maximum term.--During each calendar month, 
                the Secretary shall determine the maximum term 
                permitted under this paragraph for bonds issued during 
                the following calendar month. Such maximum term shall 
                be the term which the Secretary estimates will result 
                in the present value of the obligation to repay the 
                principal on the bond being equal to 50 percent of the 
                face amount of such bond. Such present value shall be 
                determined using as a discount rate the average annual 
                interest rate of tax-exempt obligations having a term 
                of 10 years or more which are issued during the month. 
                If the term as so determined is not a multiple of a 
                whole year, such term shall be rounded to the next 
                highest whole year.
            ``(6) Prohibition on financial conflicts of interest.--An 
        issue shall be treated as meeting the requirements of this 
        paragraph if the issuer certifies that--
                    ``(A) applicable State and local law requirements 
                governing conflicts of interest are satisfied with 
                respect to such issue, and
                    ``(B) if the Secretary prescribes additional 
                conflicts of interest rules governing the appropriate 
                Members of Congress, Federal, State, and local 
                officials, and their spouses, such additional rules are 
                satisfied with respect to such issue.
    ``(e) Other Definitions.--For purposes of this subchapter--
            ``(1) Credit allowance date.--The term `credit allowance 
        date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term includes the last day on which the bond is 
        outstanding.
            ``(2) Bond.--The term `bond' includes any obligation.
            ``(3) State.--The term `State' includes the District of 
        Columbia and any possession of the United States.
            ``(4) Available project proceeds.--The term `available 
        project proceeds' means--
                    ``(A) the excess of--
                            ``(i) the proceeds from the sale of an 
                        issue, over
                            ``(ii) the issuance costs financed by the 
                        issue (to the extent that such costs do not 
                        exceed 2 percent of such proceeds), and
                    ``(B) the proceeds from any investment of the 
                excess described in subparagraph (A).
    ``(f) Credit Treated as Interest.--For purposes of this subtitle, 
the credit determined under subsection (a) shall be treated as interest 
which is includible in gross income.
    ``(g) S Corporations and Partnerships.--In the case of a tax credit 
bond held by an S corporation or partnership, the allocation of the 
credit allowed by this section to the shareholders of such corporation 
or partners of such partnership shall be treated as a distribution.
    ``(h) Bonds Held by Regulated Investment Companies and Real Estate 
Investment Trusts.--If any qualified tax credit bond is held by a 
regulated investment company or a real estate investment trust, the 
credit determined under subsection (a) shall be allowed to shareholders 
of such company or beneficiaries of such trust (and any gross income 
included under subsection (f) with respect to such credit shall be 
treated as distributed to such shareholders or beneficiaries) under 
procedures prescribed by the Secretary.
    ``(i) Credits May Be Stripped.--Under regulations prescribed by the 
Secretary--
            ``(1) In general.--There may be a separation (including at 
        issuance) of the ownership of a qualified tax credit bond and 
        the entitlement to the credit under this section with respect 
        to such bond. In case of any such separation, the credit under 
        this section shall be allowed to the person who on the credit 
        allowance date holds the instrument evidencing the entitlement 
        to the credit and not to the holder of the bond.
            ``(2) Certain rules to apply.--In the case of a separation 
        described in paragraph (1), the rules of section 1286 shall 
        apply to the qualified tax credit bond as if it were a stripped 
        bond and to the credit under this section as if it were a 
        stripped coupon.

``SEC. 54B. QUALIFIED FORESTRY CONSERVATION BONDS.

    ``(a) Qualified Forestry Conservation Bond.--For purposes of this 
subchapter, the term `qualified forestry conservation bond' means any 
bond issued as part of an issue if--
            ``(1) 100 percent of the available project proceeds of such 
        issue are to be used for one or more qualified forestry 
        conservation purposes,
            ``(2) the bond is issued by a qualified issuer, and
            ``(3) the issuer designates such bond for purposes of this 
        section.
    ``(b) Limitation on Amount of Bonds Designated.--The maximum 
aggregate face amount of bonds which may be designated under subsection 
(a) by any issuer shall not exceed the limitation amount allocated to 
such issuer under subsection (d).
    ``(c) National Limitation on Amount of Bonds Designated.--There is 
a national qualified forestry conservation bond limitation of 
$500,000,000.
    ``(d) Allocations.--
            ``(1) In general.--The Secretary shall make allocations of 
        the amount of the national qualified forestry conservation bond 
        limitation described in subsection (c) among qualified forestry 
        conservation purposes in such manner as the Secretary 
        determines appropriate so as to ensure that all of such 
        limitation is allocated before the date which is 24 months 
        after the date of the enactment of this section.
            ``(2) Solicitation of applications.--The Secretary shall 
        solicit applications for allocations of the national qualified 
        forestry conservation bond limitation described in subsection 
        (c) not later than 90 days after the date of the enactment of 
        this section.
    ``(e) Qualified Forestry Conservation Purpose.--For purposes of 
this section, the term `qualified forestry conservation purpose' means 
the acquisition by a State or any political subdivision or 
instrumentality thereof or a 501(c)(3) organization (as defined in 
section 150(a)(4)) from an unrelated person of forest and forest land 
that meets the following qualifications:
            ``(1) Some portion of the land acquired must be adjacent to 
        United States Forest Service Land.
            ``(2) At least half of the land acquired must be 
        transferred to the United States Forest Service at no net cost 
        to the United States and not more than half of the land 
        acquired may either remain with or be conveyed to a State.
            ``(3) All of the land must be subject to a native fish 
        habitat conservation plan approved by the United States Fish 
        and Wildlife Service.
            ``(4) The amount of acreage acquired must be at least 
        40,000 acres.
    ``(f) Qualified Issuer.--For purposes of this section, the term 
`qualified issuer' means a State or any political subdivision or 
instrumentality thereof or a 501(c)(3) organization (as defined in 
section 150(a)(4)).
    ``(g) Special Arbitrage Rule.--In the case of any qualified 
forestry conservation bond issued as part of an issue, section 
54A(d)(4)(C) shall be applied to such issue without regard to clause 
(i).
    ``(h) Election to Treat 50 Percent of Bond Allocation as Payment of 
Tax.--
            ``(1) In general.--If--
                    ``(A) a qualified issuer receives an allocation of 
                any portion of the national qualified forestry 
                conservation bond limitation described in subsection 
                (c), and
                    ``(B) the qualified issuer elects the application 
                of this subsection with respect to such allocation,
        then the qualified issuer (without regard to whether the issuer 
        is subject to tax under this chapter) shall be treated as 
        having made a payment against the tax imposed by this chapter, 
        for the taxable year preceding the taxable year in which the 
        allocation is received, in an amount equal to 50 percent of the 
        amount of such allocation.
            ``(2) Treatment of deemed payment.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this title, the Secretary shall not use 
                the payment of tax described in paragraph (1) as an 
                offset or credit against any tax liability of the 
                qualified issuer but shall refund such payment to such 
                issuer.
                    ``(B) No interest.--Except as provided in paragraph 
                (3)(A), the payment described in paragraph (1) shall 
                not be taken into account in determining any amount of 
                interest under this title.
            ``(3) Requirement for, and effect of, election.--
                    ``(A) Requirement.--No election under this 
                subsection shall take effect unless the qualified 
                issuer certifies to the Secretary that any payment of 
                tax refunded to the issuer under this subsection will 
                be used exclusively for 1 or more qualified forestry 
                conservation purposes. If the qualified issuer fails to 
                use any portion of such payment for such purpose, the 
                issuer shall be liable to the United States in an 
                amount equal to such portion, plus interest at the 
                overpayment rate under section 6621 for the period from 
                the date such portion was refunded to the date such 
                amount is paid. Any such amount shall be assessed and 
                collected in the same manner as tax imposed by this 
                chapter, except that subchapter B of chapter 63 
                (relating to deficiency procedures) shall not apply in 
                respect of such assessment or collection.
                    ``(B) Effect of election on allocation.--If a 
                qualified issuer makes the election under this 
                subsection with respect to any allocation--
                            ``(i) the issuer may issue no bonds 
                        pursuant to the allocation, and
                            ``(ii) the Secretary may not reallocate 
                        such allocation for any other purpose.''.
    (b) Reporting.--Subsection (d) of section 6049 (relating to returns 
regarding payments of interest) is amended by adding at the end the 
following new paragraph:
            ``(9) Reporting of credit on qualified tax credit bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 54A and such amounts shall 
                be treated as paid on the credit allowance date (as 
                defined in section 54A(e)(1)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A) of this 
                paragraph, subsection (b)(4) of this section shall be 
                applied without regard to subparagraphs (A), (H), (I), 
                (J), (K), and (L)(i).
                    ``(C) Regulatory authority.--The Secretary may 
                prescribe such regulations as are necessary or 
                appropriate to carry out the purposes of this 
                paragraph, including regulations which require more 
                frequent or more detailed reporting.''.
    (c) Conforming Amendments.--
            (1) Sections 54(c)(2) and 1400N(l)(3)(B) are each amended 
        by striking ``subpart C'' and inserting ``subparts C and I''.
            (2) Section 1397E(c)(2) is amended by striking ``subpart 
        H'' and inserting ``subparts H and I''.
            (3) Section 6401(b)(1) is amended by striking ``and H'' and 
        inserting ``H, and I''.
            (4) The heading of subpart H of part IV of subchapter A of 
        chapter 1 is amended by striking ``Certain Bonds'' and 
        inserting ``Clean Renewable Energy Bonds''.
            (5) The table of subparts for part IV of subchapter A of 
        chapter 1 is amended by striking the item relating to subpart H 
        and inserting the following new items:

``subpart h. nonrefundable credit to holders of clean renewable energy 
                                 bonds.

              ``subpart i. qualified tax credit bonds.''.

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

                       PART II--ENERGY PROVISIONS

                     Subpart A--Cellulosic Biofuel

SEC. 15321. CREDIT FOR PRODUCTION OF CELLULOSIC BIOFUEL.

    (a) In General.--Subsection (a) of section 40 (relating to alcohol 
used as fuel) is amended by striking ``plus'' at the end of paragraph 
(1), by striking ``plus'' at the end of paragraph (2), by striking the 
period at the end of paragraph (3) and inserting ``, plus'', and by 
adding at the end the following new paragraph:
            ``(4) the cellulosic biofuel producer credit.''.
    (b) Cellulosic Biofuel Producer Credit.--
            (1) In general.--Subsection (b) of section 40 is amended by 
        adding at the end the following new paragraph:
            ``(6) Cellulosic biofuel producer credit.--
                    ``(A) In general.--The cellulosic biofuel producer 
                credit of any taxpayer is an amount equal to the 
                applicable amount for each gallon of qualified 
                cellulosic biofuel production.
                    ``(B) Applicable amount.--For purposes of 
                subparagraph (A), the applicable amount means $1.01, 
                except that such amount shall, in the case of 
                cellulosic biofuel which is alcohol, be reduced by the 
                sum of--
                            ``(i) the amount of the credit in effect 
                        for such alcohol under subsection (b)(1) 
                        (without regard to subsection (b)(3)) at the 
                        time of the qualified cellulosic biofuel 
                        production, plus
                            ``(ii) in the case of ethanol, the amount 
                        of the credit in effect under subsection (b)(4) 
                        at the time of such production.
                    ``(C) Qualified cellulosic biofuel production.--For 
                purposes of this section, the term `qualified 
                cellulosic biofuel production' means any cellulosic 
                biofuel which is produced by the taxpayer, and which 
                during the taxable year--
                            ``(i) is sold by the taxpayer to another 
                        person--
                                    ``(I) for use by such other person 
                                in the production of a qualified 
                                cellulosic biofuel mixture in such 
                                other person's trade or business (other 
                                than casual off-farm production),
                                    ``(II) for use by such other person 
                                as a fuel in a trade or business, or
                                    ``(III) who sells such cellulosic 
                                biofuel at retail to another person and 
                                places such cellulosic biofuel in the 
                                fuel tank of such other person, or
                            ``(ii) is used or sold by the taxpayer for 
                        any purpose described in clause (i).
                The qualified cellulosic biofuel production of any 
                taxpayer for any taxable year shall not include any 
                alcohol which is purchased by the taxpayer and with 
                respect to which such producer increases the proof of 
                the alcohol by additional distillation.
                    ``(D) Qualified cellulosic biofuel mixture.--For 
                purposes of this paragraph, the term `qualified 
                cellulosic biofuel mixture' means a mixture of 
                cellulosic biofuel and gasoline or of cellulosic 
                biofuel and a special fuel which--
                            ``(i) is sold by the person producing such 
                        mixture to any person for use as a fuel, or
                            ``(ii) is used as a fuel by the person 
                        producing such mixture.
                    ``(E) Cellulosic biofuel.--For purposes of this 
                paragraph--
                            ``(i) In general.--The term `cellulosic 
                        biofuel' means any liquid fuel which--
                                    ``(I) is produced from any 
                                lignocellulosic or hemicellulosic 
                                matter that is available on a renewable 
                                or recurring basis, and
                                    ``(II) meets the registration 
                                requirements for fuels and fuel 
                                additives established by the 
                                Environmental Protection Agency under 
                                section 211 of the Clean Air Act (42 
                                U.S.C. 7545).
                            ``(ii) Exclusion of low-proof alcohol.--
                        Such term shall not include any alcohol with a 
                        proof of less than 150. The determination of 
                        the proof of any alcohol shall be made without 
                        regard to any added denaturants.
                    ``(F) Allocation of cellulosic biofuel producer 
                credit to patrons of cooperative.--Rules similar to the 
                rules under subsection (g)(6) shall apply for purposes 
                of this paragraph.
                    ``(G) Registration requirement.--No credit shall be 
                determined under this paragraph with respect to any 
                taxpayer unless such taxpayer is registered with the 
                Secretary as a producer of cellulosic biofuel under 
                section 4101.
                    ``(H) Application of paragraph.--This paragraph 
                shall apply with respect to qualified cellulosic 
                biofuel production after December 31, 2008, and before 
                January 1, 2013.''.
            (2) Termination date not to apply.--Subsection (e) of 
        section 40 (relating to termination) is amended--
                    (A) by inserting ``or subsection (b)(6)(H)'' after 
                ``by reason of paragraph (1)'' in paragraph (2), and
                    (B) by adding at the end the following new 
                paragraph:
            ``(3) Exception for cellulosic biofuel producer credit.--
        Paragraph (1) shall not apply to the portion of the credit 
        allowed under this section by reason of subsection (a)(4).''.
            (3) Conforming amendments.--
                    (A) Paragraph (1) of section 4101(a) is amended--
                            (i) by striking ``and every person'' and 
                        inserting ``, every person'', and
                            (ii) by inserting ``, and every person 
                        producing cellulosic biofuel (as defined in 
                        section 40(b)(6)(E))'' after ``section 
                        6426(b)(4)(A))''.
                    (B) The heading of section 40, and the item 
                relating to such section in the table of sections for 
                subpart D of part IV of subchapter A of chapter 1, are 
                each amended by inserting ``, etc.,'' after 
                ``Alcohol''.
    (c) Biofuel Not Used as a Fuel, etc.--
            (1) In general.--Paragraph (3) of section 40(d) is amended 
        by redesignating subparagraph (D) as subparagraph (E) and by 
        inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) Cellulosic biofuel producer credit.--If--
                            ``(i) any credit is allowed under 
                        subsection (a)(4), and
                            ``(ii) any person does not use such fuel 
                        for a purpose described in subsection 
                        (b)(6)(C),
                then there is hereby imposed on such person a tax equal 
                to the applicable amount (as defined in subsection 
                (b)(6)(B)) for each gallon of such cellulosic 
                biofuel.''.
            (2) Conforming amendments.--
                    (A) Subparagraph (C) of section 40(d)(3) is amended 
                by striking ``Producer'' in the heading and inserting 
                ``Small ethanol producer''.
                    (B) Subparagraph (E) of section 40(d)(3), as 
                redesignated by paragraph (1), is amended by striking 
                ``or (C)'' and inserting ``(C), or (D)''.
    (d) Biofuel Produced in the United States.--Section 40(d) is 
amended by adding at the end the following new paragraph:
            ``(6) Special rule for cellulosic biofuel producer 
        credit.--No cellulosic biofuel producer credit shall be 
        determined under subsection (a) with respect to any cellulosic 
        biofuel unless such cellulosic biofuel is produced in the 
        United States and used as a fuel in the United States. For 
        purposes of this subsection, the term `United States' includes 
        any possession of the United States.''.
    (e) Waiver of Credit Limit for Cellulosic Biofuel Production by 
Small Ethanol Producers.--Section 40(b)(4)(C) is amended by inserting 
``(determined without regard to any qualified cellulosic biofuel 
production)'' after ``15,000,000 gallons''.
    (f) Denial of Double Benefit.--
            (1) Biodiesel.--Paragraph (1) of section 40A(d) is amended 
        by adding at the end the following new flush sentence:
        ``Such term shall not include any liquid with respect to which 
        a credit may be determined under section 40.''.
            (2) Renewable diesel.--Paragraph (3) of section 40A(f) is 
        amended by adding at the end the following new flush sentence:
        ``Such term shall not include any liquid with respect to which 
        a credit may be determined under section 40.''.
    (g) Effective Date.--The amendments made by this section shall 
apply to fuel produced after December 31, 2008.

SEC. 15322. COMPREHENSIVE STUDY OF BIOFUELS.

    (a) Study.--The Secretary of the Treasury, in consultation with the 
Secretary of Agriculture, the Secretary of Energy, and the 
Administrator of the Environmental Protection Agency, shall enter into 
an agreement with the National Academy of Sciences to produce an 
analysis of current scientific findings to determine--
            (1) current biofuels production, as well as projections for 
        future production,
            (2) the maximum amount of biofuels production capable in 
        United States forests and farmlands, including the current 
        quantities and character of the feedstocks and including such 
        information as regional forest inventories that are 
        commercially available, used in the production of biofuels,
            (3) the domestic effects of an increase in biofuels 
        production levels, including the effects of such levels on--
                    (A) the price of fuel,
                    (B) the price of land in rural and suburban 
                communities,
                    (C) crop acreage, forest acreage, and other land 
                use,
                    (D) the environment, due to changes in crop 
                acreage, fertilizer use, runoff, water use, emissions 
                from vehicles utilizing biofuels, and other factors,
                    (E) the price of feed,
                    (F) the selling price of grain crops and forest 
                products,
                    (G) exports and imports of grains and forest 
                products,
                    (H) taxpayers, through cost or savings to commodity 
                crop payments, and
                    (I) the expansion of refinery capacity,
            (4) the ability to convert corn ethanol plants for other 
        uses, such as cellulosic ethanol or biodiesel,
            (5) a comparative analysis of corn ethanol versus other 
        biofuels and renewable energy sources, considering cost, energy 
        output, and ease of implementation,
            (6) the impact of the tax credit established by this 
        subpart on the regional agricultural and silvicultural 
        capabilities of commercially available forest inventories, and
            (7) the need for additional scientific inquiry, and 
        specific areas of interest for future research.
    (b) Report.--The Secretary of the Treasury shall submit an initial 
report of the findings of the study required under subsection (a) to 
Congress not later than 6 months after the date of the enactment of 
this Act (36 months after such date in the case of the information 
required by subsection (a)(6)), and a final report not later than 12 
months after such date (42 months after such date in the case of the 
information required by subsection (a)(6)).

                     Subpart B--Revenue Provisions

SEC. 15331. MODIFICATION OF ALCOHOL CREDIT.

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


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

            (2) Exception.--Section 40(h) is amended by adding at the 
        end the following new paragraph:
            ``(3) Reduction delayed until annual production or 
        importation of 7,500,000,000 gallons.--
                    ``(A) In general.--In the case of any calendar year 
                beginning after 2008, if the Secretary makes a 
                determination described in subparagraph (B) with 
                respect to all preceding calendar years beginning after 
                2007, the last row in the table in paragraph (2) shall 
                be applied by substituting `51 cents' for `45 cents'.
                    ``(B) Determination.--A determination described in 
                this subparagraph with respect to any calendar year is 
                a determination, in consultation with the Administrator 
                of the Environmental Protection Agency, that an amount 
                less than 7,500,000,000 gallons of ethanol (including 
                cellulosic ethanol) has been produced in or imported 
                into the United States in such year.''.
    (b) Excise Tax Credit.--
            (1) In general.--Subparagraph (A) of section 6426(b)(2) 
        (relating to alcohol fuel mixture credit) is amended by 
        striking ``the applicable amount is 51 cents'' and inserting 
        ``the applicable amount is--
                            ``(i) in the case of calendar years 
                        beginning before 2009, 51 cents, and
                            ``(ii) in the case of calendar years 
                        beginning after 2008, 45 cents.''.
            (2) Exception.--Paragraph (2) of section 6426(b) is amended 
        by adding at the end the following new subparagraph:
                    ``(C) Reduction delayed until annual production or 
                importation of 7,500,000,000 gallons.--In the case of 
                any calendar year beginning after 2008, if the 
                Secretary makes a determination described in section 
                40(h)(3)(B) with respect to all preceding calendar 
                years beginning after 2007, subparagraph (A)(ii) shall 
                be applied by substituting `51 cents' for `45 cents'.''
            (3) Conforming amendment.--Subparagraph (A) of section 
        6426(b)(2) is amended by striking ``subparagraph (B)'' and 
        inserting ``subparagraphs (B) and (C)''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 15332. CALCULATION OF VOLUME OF ALCOHOL FOR FUEL CREDITS.

    (a) In General.--Paragraph (4) of section 40(d) (relating to volume 
of alcohol) is amended by striking ``5 percent'' and inserting ``2 
percent''.
    (b) Conforming Amendment for Excise Tax Credit.--Section 6426(b) 
(relating to alcohol fuel mixture credit) is amended by redesignating 
paragraph (5) as paragraph (6) and by inserting after paragraph (4) the 
following new paragraph:
            ``(5) Volume of alcohol.--For purposes of determining under 
        subsection (a) the number of gallons of alcohol with respect to 
        which a credit is allowable under subsection (a), the volume of 
        alcohol shall include the volume of any denaturant (including 
        gasoline) which is added under any formulas approved by the 
        Secretary to the extent that such denaturants do not exceed 2 
        percent of the volume of such alcohol (including 
        denaturants).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after December 31, 2008.

SEC. 15333. ETHANOL TARIFF EXTENSION.

    Headings 9901.00.50 and 9901.00.52 of the Harmonized Tariff 
Schedule of the United States are each amended in the effective period 
column by striking ``1/1/2009'' and inserting ``1/1/2011''.

SEC. 15334. LIMITATIONS ON DUTY DRAWBACK ON CERTAIN IMPORTED ETHANOL.

    (a) In General.--Section 313(p) of the Tariff Act of 1930 (19 
U.S.C. 1313(p)) is amended by adding at the end the following new 
paragraph:
            ``(5) Special rules for ethyl alcohol.--For purposes of 
        this subsection, any duty paid under subheading 9901.00.50 of 
        the Harmonized Tariff Schedule of the United States on imports 
        of ethyl alcohol or a mixture of ethyl alcohol may not be 
        refunded if the exported article upon which a drawback claim is 
        based does not contain ethyl alcohol or a mixture of ethyl 
        alcohol.''.
    (b) Effective Date.--The amendment made by this section applies 
with respect to--
            (1) imports of ethyl alcohol or a mixture of ethyl alcohol 
        entered for consumption, or withdrawn from warehouse for 
        consumption, on or after October 1, 2008; and
            (2) imports of ethyl alcohol or a mixture of ethyl alcohol 
        entered for consumption, or withdrawn from warehouse for 
        consumption, before October 1, 2008, if a duty drawback claim 
        is filed with respect to such imports on or after October 1, 
        2010.

                   PART III--AGRICULTURAL PROVISIONS

SEC. 15341. INCREASE IN LOAN LIMITS ON AGRICULTURAL BONDS.

    (a) In General.--Subparagraph (A) of section 147(c)(2) (relating to 
exception for first-time farmers) is amended by striking ``$250,000'' 
and inserting ``$450,000''.
    (b) Inflation Adjustment.--Section 147(c)(2) is amended by adding 
at the end the following new subparagraph:
                    ``(H) Adjustments for inflation.--In the case of 
                any calendar year after 2008, the dollar amount in 
                subparagraph (A) shall be increased by an amount equal 
                to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year, determined by substituting 
                        `calendar year 2007' for `calendar year 1992' 
                        in subparagraph (B) thereof.
                If any amount as increased under the preceding sentence 
                is not a multiple of $100, such amount shall be rounded 
                to the nearest multiple of $100.''.
    (c) Modification of Substantial Farmland Definition.--Section 
147(c)(2)(E) (defining substantial farmland) is amended by striking 
``unless'' and all that follows through the period and inserting 
``unless such parcel is smaller than 30 percent of the median size of a 
farm in the county in which such parcel is located.''.
    (d) Conforming Amendment.--Section 147(c)(2)(C)(i)(II) is amended 
by striking ``$250,000'' and inserting ``the amount in effect under 
subparagraph (A)''.
    (e) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.

SEC. 15342. ALLOWANCE OF SECTION 1031 TREATMENT FOR EXCHANGES INVOLVING 
              CERTAIN MUTUAL DITCH, RESERVOIR, OR IRRIGATION COMPANY 
              STOCK.

    (a) In General.--Section 1031 (relating to exchange of property 
held for productive use or investment) is amended by adding at the end 
the following new subsection:
    ``(i) Special Rules for Mutual Ditch, Reservoir, or Irrigation 
Company Stock.--For purposes of subsection (a)(2)(B), the term `stocks' 
shall not include shares in a mutual ditch, reservoir, or irrigation 
company if at the time of the exchange--
            ``(1) the mutual ditch, reservoir, or irrigation company is 
        an organization described in section 501(c)(12)(A) (determined 
        without regard to the percentage of its income that is 
        collected from its members for the purpose of meeting losses 
        and expenses), and
            ``(2) the shares in such company have been recognized by 
        the highest court of the State in which such company was 
        organized or by applicable State statute as constituting or 
        representing real property or an interest in real property.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to exchanges completed after the date of the enactment of this Act.

SEC. 15343. AGRICULTURAL CHEMICALS SECURITY CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
(relating to business related credits) is amended by adding at the end 
the following new section:

``SEC. 45O. AGRICULTURAL CHEMICALS SECURITY CREDIT.

    ``(a) In General.--For purposes of section 38, in the case of an 
eligible agricultural business, the agricultural chemicals security 
credit determined under this section for the taxable year is 30 percent 
of the qualified security expenditures for the taxable year.
    ``(b) Facility Limitation.--The amount of the credit determined 
under subsection (a) with respect to any facility for any taxable year 
shall not exceed--
            ``(1) $100,000, reduced by
            ``(2) the aggregate amount of credits determined under 
        subsection (a) with respect to such facility for the 5 prior 
        taxable years.
    ``(c) Annual Limitation.--The amount of the credit determined under 
subsection (a) with respect to any taxpayer for any taxable year shall 
not exceed $2,000,000.
    ``(d) Qualified Chemical Security Expenditure.--For purposes of 
this section, the term `qualified chemical security expenditure' means, 
with respect to any eligible agricultural business for any taxable 
year, any amount paid or incurred by such business during such taxable 
year for--
            ``(1) employee security training and background checks,
            ``(2) limitation and prevention of access to controls of 
        specified agricultural chemicals stored at the facility,
            ``(3) tagging, locking tank valves, and chemical additives 
        to prevent the theft of specified agricultural chemicals or to 
        render such chemicals unfit for illegal use,
            ``(4) protection of the perimeter of specified agricultural 
        chemicals,
            ``(5) installation of security lighting, cameras, recording 
        equipment, and intrusion detection sensors,
            ``(6) implementation of measures to increase computer or 
        computer network security,
            ``(7) conducting a security vulnerability assessment,
            ``(8) implementing a site security plan, and
            ``(9) such other measures for the protection of specified 
        agricultural chemicals as the Secretary may identify in 
        regulation.
Amounts described in the preceding sentence shall be taken into account 
only to the extent that such amounts are paid or incurred for the 
purpose of protecting specified agricultural chemicals.
    ``(e) Eligible Agricultural Business.--For purposes of this 
section, the term `eligible agricultural business' means any person in 
the trade or business of--
            ``(1) selling agricultural products, including specified 
        agricultural chemicals, at retail predominantly to farmers and 
        ranchers, or
            ``(2) manufacturing, formulating, distributing, or aerially 
        applying specified agricultural chemicals.
    ``(f) Specified Agricultural Chemical.--For purposes of this 
section, the term `specified agricultural chemical' means--
            ``(1) any fertilizer commonly used in agricultural 
        operations which is listed under--
                    ``(A) section 302(a)(2) of the Emergency Planning 
                and Community Right-to-Know Act of 1986,
                    ``(B) section 101 of part 172 of title 49, Code of 
                Federal Regulations, or
                    ``(C) part 126, 127, or 154 of title 33, Code of 
                Federal Regulations, and
            ``(2) any pesticide (as defined in section 2(u) of the 
        Federal Insecticide, Fungicide, and Rodenticide Act), including 
        all active and inert ingredients thereof, which is customarily 
        used on crops grown for food, feed, or fiber.
    ``(g) Controlled Groups.--Rules similar to the rules of paragraphs 
(1) and (2) of section 41(f) shall apply for purposes of this section.
    ``(h) Regulations.--The Secretary may prescribe such regulations as 
may be necessary or appropriate to carry out the purposes of this 
section, including regulations which--
            ``(1) provide for the proper treatment of amounts which are 
        paid or incurred for purpose of protecting any specified 
        agricultural chemical and for other purposes, and
            ``(2) provide for the treatment of related properties as 
        one facility for purposes of subsection (b).
    ``(i) Termination.--This section shall not apply to any amount paid 
or incurred after December 31, 2012.''.
    (b) Credit Allowed as Part of General Business Credit.--Section 
38(b) is amended by striking ``plus'' at the end of paragraph (30), by 
striking the period at the end of paragraph (31) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(32) in the case of an eligible agricultural business (as 
        defined in section 45O(e)), the agricultural chemicals security 
        credit determined under section 45O(a).''.
    (c) Denial of Double Benefit.--Section 280C is amended by adding at 
the end the following new subsection:
    ``(f) Credit for Security of Agricultural Chemicals.--No deduction 
shall be allowed for that portion of the expenses otherwise allowable 
as a deduction taken into account in determining the credit under 
section 45O for the taxable year which is equal to the amount of the 
credit determined for such taxable year under section 45O(a).''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 is amended by adding at the end 
the following new item:

``Sec. 45O. Agricultural chemicals security credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.

SEC. 15344. 3-YEAR DEPRECIATION FOR RACE HORSES THAT ARE 2-YEARS OLD OR 
              YOUNGER.

    (a) In General.--Clause (i) of section 168(e)(3)(A) (relating to 3-
year property) is amended to read as follows:
                            ``(i) any race horse--
                                    ``(I) which is placed in service 
                                before January 1, 2014, and
                                    ``(II) which is placed in service 
                                after December 31, 2013, and which is 
                                more than 2 years old at the time such 
                                horse is placed in service by such 
                                purchaser,''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2008.

SEC. 15345. TEMPORARY TAX RELIEF FOR KIOWA COUNTY, KANSAS AND 
              SURROUNDING AREA.

    (a) In General.--Subject to the modifications described in this 
section, the following provisions of or relating to the Internal 
Revenue Code of 1986 shall apply to the Kansas disaster area in 
addition to the areas to which such provisions otherwise apply:
            (1) Section 1400N(d) of such Code (relating to special 
        allowance for certain property).
            (2) Section 1400N(e) of such Code (relating to increase in 
        expensing under section 179).
            (3) Section 1400N(f) of such Code (relating to expensing 
        for certain demolition and clean-up costs).
            (4) Section 1400N(k) of such Code (relating to treatment of 
        net operating losses attributable to storm losses).
            (5) Section 1400N(n) of such Code (relating to treatment of 
        representations regarding income eligibility for purposes of 
        qualified rental project requirements).
            (6) Section 1400N(o) of such Code (relating to treatment of 
        public utility property disaster losses).
            (7) Section 1400Q of such Code (relating to special rules 
        for use of retirement funds).
            (8) Section 1400R(a) of such Code (relating to employee 
        retention credit for employers).
            (9) Section 1400S(b) of such Code (relating to suspension 
        of certain limitations on personal casualty losses).
            (10) Section 405 of the Katrina Emergency Tax Relief Act of 
        2005 (relating to extension of replacement period for 
        nonrecognition of gain).
    (b) Kansas Disaster Area.--For purposes of this section, the term 
``Kansas disaster area'' means an area with respect to which a major 
disaster has been declared by the President under section 401 of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (FEMA-
1699-DR, as in effect on the date of the enactment of this Act) by 
reason of severe storms and tornados beginning on May 4, 2007, and 
determined by the President to warrant individual or individual and 
public assistance from the Federal Government under such Act with 
respect to damages attributable to such storms and tornados.
    (c) References to Area or Loss.--
            (1) Area.--Any reference in such provisions to the Katrina 
        disaster area or the Gulf Opportunity Zone shall be treated as 
        a reference to the Kansas disaster area.
            (2) Loss.--Any reference in such provisions to any loss or 
        damage attributable to Hurricane Katrina shall be treated as a 
        reference to any loss or damage attributable to the May 4, 
        2007, storms and tornados.
    (d) References to Dates, etc.--
            (1) Special allowance for certain property acquired on or 
        after may 5, 2007.--Section 1400N(d) of such Code--
                    (A) by substituting ``qualified Recovery Assistance 
                property'' for ``qualified Gulf Opportunity Zone 
                property'' each place it appears,
                    (B) by substituting ``May 5, 2007'' for ``August 
                28, 2005'' each place it appears,
                    (C) by substituting ``December 31, 2008'' for 
                ``December 31, 2007'' in paragraph (2)(A)(v),
                    (D) by substituting ``December 31, 2009'' for 
                ``December 31, 2008'' in paragraph (2)(A)(v),
                    (E) by substituting ``May 4, 2007'' for ``August 
                27, 2005'' in paragraph (3)(A),
                    (F) by substituting ``January 1, 2009'' for 
                ``January 1, 2008'' in paragraph (3)(B), and
                    (G) determined without regard to paragraph (6) 
                thereof.
            (2) Increase in expensing under section 179.--Section 
        1400N(e) of such Code, by substituting ``qualified section 179 
        Recovery Assistance property'' for ``qualified section 179 Gulf 
        Opportunity Zone property'' each place it appears.
            (3) Expensing for certain demolition and clean-up costs.--
        Section 1400N(f) of such Code--
                    (A) by substituting ``qualified Recovery Assistance 
                clean-up cost'' for ``qualified Gulf Opportunity Zone 
                clean-up cost'' each place it appears, and
                    (B) by substituting ``beginning on May 4, 2007, and 
                ending on December 31, 2009'' for ``beginning on August 
                28, 2005, and ending on December 31, 2007'' in 
                paragraph (2) thereof.
            (4) Treatment of net operating losses attributable to storm 
        losses.--Section 1400N(k) of such Code--
                    (A) by substituting ``qualified Recovery Assistance 
                loss'' for ``qualified Gulf Opportunity Zone loss'' 
                each place it appears,
                    (B) by substituting ``after May 3, 2007, and before 
                on January 1, 2010'' for ``after August 27, 2005, and 
                before January 1, 2008'' each place it appears,
                    (C) by substituting ``May 4, 2007'' for ``August 
                28, 2005'' in paragraph (2)(B)(ii)(I) thereof,
                    (D) by substituting ``qualified Recovery Assistance 
                property'' for ``qualified Gulf Opportunity Zone 
                property'' in paragraph (2)(B)(iv) thereof, and
                    (E) by substituting ``qualified Recovery Assistance 
                casualty loss'' for ``qualified Gulf Opportunity Zone 
                casualty loss'' each place it appears.
            (5) Special rules for use of retirement funds.--Section 
        1400Q of such Code--
                    (A) by substituting ``qualified Recovery Assistance 
                distribution'' for ``qualified hurricane distribution'' 
                each place it appears,
                    (B) by substituting ``on or after May 4, 2007, and 
                before January 1, 2009'' for ``on or after August 25, 
                2005, and before January 1, 2007'' in subsection 
                (a)(4)(A)(i),
                    (C) by substituting ``May 4, 2007'' for ``August 
                28, 2005'' in subsections (a)(4)(A)(i) and (c)(3)(B),
                    (D) disregarding clauses (ii) and (iii) of 
                subsection (a)(4)(A),
                    (E) by substituting ``qualified storm 
                distribution'' for ``qualified Katrina distribution'' 
                each place it appears,
                    (F) by substituting ``after November 4, 2006, and 
                before May 5, 2007'' for ``after February 28, 2005, and 
                before August 29, 2005'' in subsection (b)(2)(B)(ii),
                    (G) by substituting ``the Kansas disaster area (as 
                defined in section 15345(b) of the Food, Conservation, 
                and Energy Act of 2008) but which was not so purchased 
                or constructed on account of the May 4, 2007, storms 
                and tornados'' for ``the Hurricane Katrina disaster 
                area, but not so purchased or constructed on account of 
                Hurricane Katrina'' in subsection (b)(2)(B)(iii),
                    (H) by substituting ``beginning on May 4, 2007, and 
                ending on the date which is 5 months after the date of 
                the enactment of the Heartland, Habitat, Harvest, and 
                Horticulture Act of 2008'' for ``beginning on August 
                25, 2005, and ending on February 28, 2006'' in 
                subsection (b)(3)(A),
                    (I) by substituting ``qualified storm individual'' 
                for ``qualified Hurricane Katrina individual'' each 
                place it appears,
                    (J) by substituting ``December 31, 2008'' for 
                ``December 31, 2006'' in subsection (c)(2)(A),
                    (K) by substituting ``beginning on the date of the 
                enactment of the Food, Conservation, and Energy Act of 
                2008 and ending on December 31, 2008'' for ``beginning 
                on September 24, 2005, and ending on December 31, 
                2006'' in subsection (c)(4)(A)(i),
                    (L) by substituting ``May 4, 2007'' for ``August 
                25, 2005'' in subsection (c)(4)(A)(ii), and
                    (M) by substituting ``January 1, 2009'' for 
                ``January 1, 2007'' in subsection (d)(2)(A)(ii).
            (6) Employee retention credit for employers affected by may 
        4 storms and tornados.--Section 1400R(a) of the Internal 
        Revenue Code of 1986--
                    (A) by substituting ``May 4, 2007'' for ``August 
                28, 2005'' each place it appears,
                    (B) by substituting ``January 1, 2008'' for 
                ``January 1, 2006'' both places it appears, and
                    (C) only with respect to eligible employers who 
                employed an average of not more than 200 employees on 
                business days during the taxable year before May 4, 
                2007.
            (7) Suspension of certain limitations on personal casualty 
        losses.--Section 1400S(b)(1) of the Internal Revenue Code of 
        1986, by substituting ``May 4, 2007'' for ``August 25, 2005''.
            (8) Extension of replacement period for nonrecognition of 
        gain.--Section 405 of the Katrina Emergency Tax Relief Act of 
        2005, by substituting ``on or after May 4, 2007'' for ``on or 
        after August 25, 2005''.

SEC. 15346. COMPETITIVE CERTIFICATION AWARDS MODIFICATION AUTHORITY.

    (a) In General.--Section 48A (relating to qualifying advanced coal 
project credit) is amended by adding at the end the following new 
subsection:
    ``(h) Competitive Certification Awards Modification Authority.--In 
implementing this section or section 48B, the Secretary is directed to 
modify the terms of any competitive certification award and any 
associated closing agreement where such modification--
            ``(1) is consistent with the objectives of such section,
            ``(2) is requested by the recipient of the competitive 
        certification award, and
            ``(3) involves moving the project site to improve the 
        potential to capture and sequester carbon dioxide emissions, 
        reduce costs of transporting feedstock, and serve a broader 
        customer base,
unless the Secretary determines that the dollar amount of tax credits 
available to the taxpayer under such section would increase as a result 
of the modification or such modification would result in such project 
not being originally certified. In considering any such modification, 
the Secretary shall consult with other relevant Federal agencies, 
including the Department of Energy.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act and is applicable to 
all competitive certification awards entered into under section 48A or 
48B of the Internal Revenue Code of 1986, whether such awards were 
issued before, on, or after such date of enactment.

                   PART IV--OTHER REVENUE PROVISIONS

SEC. 15351. LIMITATION ON EXCESS FARM LOSSES OF CERTAIN TAXPAYERS.

    (a) In General.--Section 461 (relating to general rule for taxable 
year of deduction) is amended by adding at the end the following new 
subsection:
    ``(j) Limitation on Excess Farm Losses of Certain Taxpayers.--
            ``(1) Limitation.--If a taxpayer other than a C corporation 
        receives any applicable subsidy for any taxable year, any 
        excess farm loss of the taxpayer for the taxable year shall not 
        be allowed.
            ``(2) Disallowed loss carried to next taxable year.--Any 
        loss which is disallowed under paragraph (1) shall be treated 
        as a deduction of the taxpayer attributable to farming 
        businesses in the next taxable year.
            ``(3) Applicable subsidy.--For purposes of this subsection, 
        the term `applicable subsidy' means--
                    ``(A) any direct or counter-cyclical payment under 
                title I of the Food, Conservation, and Energy Act of 
                2008, or any payment elected to be received in lieu of 
                any such payment, or
                    ``(B) any Commodity Credit Corporation loan.
            ``(4) Excess farm loss.--For purposes of this subsection--
                    ``(A) In general.--The term `excess farm loss' 
                means the excess of--
                            ``(i) the aggregate deductions of the 
                        taxpayer for the taxable year which are 
                        attributable to farming businesses of such 
                        taxpayer (determined without regard to whether 
                        or not such deductions are disallowed for such 
                        taxable year under paragraph (1)), over
                            ``(ii) the sum of--
                                    ``(I) the aggregate gross income or 
                                gain of such taxpayer for the taxable 
                                year which is attributable to such 
                                farming businesses, plus
                                    ``(II) the threshold amount for the 
                                taxable year.
                    ``(B) Threshold amount.--
                            ``(i) In general.--The term `threshold 
                        amount' means, with respect to any taxable 
                        year, the greater of--
                                    ``(I) $300,000 ($150,000 in the 
                                case of married individuals filing 
                                separately), or
                                    ``(II) the excess (if any) of the 
                                aggregate amounts described in 
                                subparagraph (A)(ii)(I) for the 5-
                                consecutive taxable year period 
                                preceding the taxable year over the 
                                aggregate amounts described in 
                                subparagraph (A)(i) for such period.
                            ``(ii) Special rules for determining 
                        aggregate amounts.--For purposes of clause 
                        (i)(II)--
                                    ``(I) notwithstanding the disregard 
                                in subparagraph (A)(i) of any 
                                disallowance under paragraph (1), in 
                                the case of any loss which is carried 
                                forward under paragraph (2) from any 
                                taxable year, such loss (or any portion 
                                thereof) shall be taken into account 
                                for the first taxable year in which a 
                                deduction for such loss (or portion) is 
                                not disallowed by reason of this 
                                subsection, and
                                    ``(II) the Secretary shall 
                                prescribe rules for the computation of 
                                the aggregate amounts described in such 
                                clause in cases where the filing status 
                                of the taxpayer is not the same for the 
                                taxable year and each of the taxable 
                                years in the period described in such 
                                clause.
                    ``(C) Farming business.--
                            ``(i) In general.--The term `farming 
                        business' has the meaning given such term in 
                        section 263A(e)(4).
                            ``(ii) Certain trades and businesses 
                        included.--If, without regard to this clause, a 
                        taxpayer is engaged in a farming business with 
                        respect to any agricultural or horticultural 
                        commodity--
                                    ``(I) the term `farming business' 
                                shall include any trade or business of 
                                the taxpayer of the processing of such 
                                commodity (without regard to whether 
                                the processing is incidental to the 
                                growing, raising, or harvesting of such 
                                commodity), and
                                    ``(II) if the taxpayer is a member 
                                of a cooperative to which subchapter T 
                                applies, any trade or business of the 
                                cooperative described in subclause (I) 
                                shall be treated as the trade or 
                                business of the taxpayer.
                    ``(D) Certain losses disregarded.--For purposes of 
                subparagraph (A)(i), there shall not be taken into 
                account any deduction for any loss arising by reason of 
                fire, storm, or other casualty, or by reason of disease 
                or drought, involving any farming business.
            ``(5) Application of subsection in case of partnerships and 
        s corporations.--In the case of a partnership or S 
        corporation--
                    ``(A) this subsection shall be applied at the 
                partner or shareholder level, and
                    ``(B) each partner's or shareholder's proportionate 
                share of the items of income, gain, or deduction of the 
                partnership or S corporation for any taxable year from 
                farming businesses attributable to the partnership or S 
                corporation, and of any applicable subsidies received 
                by the partnership or S corporation during the taxable 
                year, shall be taken into account by the partner or 
                shareholder in applying this subsection to the taxable 
                year of such partner or shareholder with or within 
                which the taxable year of the partnership or S 
                corporation ends.
        The Secretary may provide rules for the application of this 
        paragraph to any other pass-thru entity to the extent necessary 
        to carry out the provisions of this subsection.
            ``(6) Additional reporting.--The Secretary may prescribe 
        such additional reporting requirements as the Secretary 
        determines appropriate to carry out the purposes of this 
        subsection.
            ``(7) Coordination with section 469.--This subsection shall 
        be applied before the application of section 469.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.

SEC. 15352. MODIFICATION TO OPTIONAL METHOD OF COMPUTING NET EARNINGS 
              FROM SELF-EMPLOYMENT.

    (a) Amendments to the Internal Revenue Code of 1986.--
            (1) In general.--The matter following paragraph (17) of 
        section 1402(a) is amended--
                    (A) by striking ``$2,400'' each place it appears 
                and inserting ``the upper limit'', and
                    (B) by striking ``$1,600'' each place it appears 
                and inserting ``the lower limit''.
            (2) Definitions.--Section 1402 is amended by adding at the 
        end the following new subsection:
    ``(l) Upper and Lower Limits.--For purposes of subsection (a)--
            ``(1) Lower limit.--The lower limit for any taxable year is 
        the sum of the amounts required under section 213(d) of the 
        Social Security Act for a quarter of coverage in effect with 
        respect to each calendar quarter ending with or within such 
        taxable year.
            ``(2) Upper limit.--The upper limit for any taxable year is 
        the amount equal to 150 percent of the lower limit for such 
        taxable year.''.
    (b) Amendments to the Social Security Act.--
            (1) In general.--The matter following paragraph (16) of 
        section 211(a) of the Social Security Act is amended--
                    (A) by striking ``$2,400'' each place it appears 
                and inserting ``the upper limit'', and
                    (B) by striking ``$1,600'' each place it appears 
                and inserting ``the lower limit''.
            (2) Definitions.--Section 211 of such Act is amended by 
        adding at the end the following new subsection:
    ``(k) Upper and Lower Limits.--For purposes of subsection (a)--
            ``(1) The lower limit for any taxable year is the sum of 
        the amounts required under section 213(d) for a quarter of 
        coverage in effect with respect to each calendar quarter ending 
        with or within such taxable year.
            ``(2) The upper limit for any taxable year is the amount 
        equal to 150 percent of the lower limit for such taxable 
        year.''.
            (3) Conforming amendment.--Section 212 of such Act is 
        amended--
                    (A) in subsection (b), by striking ``For'' and 
                inserting ``Except as provided in subsection (c), 
                for''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(c) For the purpose of determining average indexed monthly 
earnings, average monthly wage, and quarters of coverage in the case of 
any individual who elects the option described in clause (ii) or (iv) 
in the matter following section 211(a)(16) for any taxable year that 
does not begin with or during a particular calendar year and end with 
or during such year, the self-employment income of such individual 
deemed to be derived during such taxable year shall be allocated to the 
two calendar years, portions of which are included within such taxable 
year, in the same proportion to the total of such deemed self-
employment income as the sum of the amounts applicable under section 
213(d) for the calendar quarters ending with or within each such 
calendar year bears to the lower limit for such taxable year specified 
in section 211(k)(1).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.

SEC. 15353. INFORMATION REPORTING FOR COMMODITY CREDIT CORPORATION 
              TRANSACTIONS.

    (a) In General.--Subpart A of part III of subchapter A of chapter 
61 (relating to information concerning persons subject to special 
provisions) is amended by inserting after section 6039I the following 
new section:

``SEC. 6039J. INFORMATION REPORTING WITH RESPECT TO COMMODITY CREDIT 
              CORPORATION TRANSACTIONS.

    ``(a) Requirement of Reporting.--The Commodity Credit Corporation, 
through the Secretary of Agriculture, shall make a return, according to 
the forms and regulations prescribed by the Secretary of the Treasury, 
setting forth any market gain realized by a taxpayer during the taxable 
year in relation to the repayment of a loan issued by the Commodity 
Credit Corporation, without regard to the manner in which such loan was 
repaid.
    ``(b) Statements to Be Furnished to Persons With Respect to Whom 
Information Is Required.--The Secretary of Agriculture shall furnish to 
each person whose name is required to be set forth in a return required 
under subsection (a) a written statement showing the amount of market 
gain reported in such return.''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
part III of subchapter A of chapter 61 is amended by inserting after 
the item relating to section 6039I the following new item:

``Sec. 6039J. Information reporting with respect to Commodity Credit 
                            Corporation transactions.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to loans repaid on or after January 1, 2007.

                 PART V--PROTECTION OF SOCIAL SECURITY

SEC. 15361. PROTECTION OF SOCIAL SECURITY.

    To ensure that the assets of the trust funds established under 
section 201 of the Social Security Act (42 U.S.C. 401) are not reduced 
as a result of the enactment of this Act, the Secretary of the Treasury 
shall transfer annually from the general revenues of the Federal 
Government to those trust funds the following amounts:
            (1) For fiscal year 2009, $5,000,000.
            (2) For fiscal year 2010, $9,000,000.
            (3) For fiscal year 2011, $8,000,000.
            (4) For fiscal year 2012, $7,000,000.
            (5) For fiscal year 2013, $8,000,000.
            (6) For fiscal year 2014, $8,000,000.
            (7) For fiscal year 2015, $8,000,000.
            (8) For fiscal year 2016, $6,000,000.
            (9) For fiscal year 2017, $7,000,000.

                      Subtitle D--Trade Provisions

              PART I--EXTENSION OF CERTAIN TRADE BENEFITS

SEC. 15401. SHORT TITLE.

    This part may be cited as the ``Haitian Hemispheric Opportunity 
through Partnership Encouragement Act of 2008'' or the ``HOPE II Act''.

SEC. 15402. BENEFITS FOR APPAREL AND OTHER TEXTILE ARTICLES.

    (a) Value-Added Rule.--Section 213A(b) of the Carribean Basin 
Economic Recovery Act (19 U.S.C. 2703a(b)) is amended as follows:
            (1) The subsection heading is amended to read as follows: 
        ``Apparel and Other Textile Articles''.
            (2) Paragraph (1) is amended to read as follows:
            ``(1) Value-added rule for apparel articles.--
                    ``(A) In general.--Apparel articles described in 
                subparagraph (B) of a producer or entity controlling 
                production that are imported directly from Haiti or the 
                Dominican Republic shall enter the United States free 
                of duty during an applicable 1-year period, subject to 
                the limitations set forth in subparagraphs (B) and (C), 
                and subject to subparagraph (D).''.
            (3) Paragraph (2) is amended--
                    (A) in subparagraph (A)--
                            (i) by moving such subparagraph 2 ems to 
                        the right;
                            (ii) in clause (i), by striking 
                        ``subparagraph (C)'' and inserting ``clause 
                        (iii)'';
                            (iii) in clause (ii), by striking 
                        ``subparagraph (C)'' and inserting ``clause 
                        (iii)'';
                            (iv) in the matter following clause (ii), 
                        by striking ``subparagraph (E)(I)'' and 
                        inserting ``clause (v)(I)'';
                            (v) by redesignating clauses (i) and (ii) 
                        as subclauses (I) and (II), respectively; and
                            (vi) by redesignating subparagraph (A) as 
                        clause (i);
                    (B) in subparagraph (B)--
                            (i) by moving such subparagraph 2 ems to 
                        the right;
                            (ii) by striking ``subparagraph (A)(i)'' 
                        each place it appears and inserting ``clause 
                        (i)(I)'';
                            (iii) by redesignating clauses (i) and (ii) 
                        as subclauses (I) and (II), respectively; and
                            (iv) by redesignating subparagraph (B) as 
                        clause (ii);
                    (C) in subparagraph (C)--
                            (i) by moving such subparagraph 2 ems to 
                        the right;
                            (ii) in the matter preceding clause (i), by 
                        striking ``subparagraph (A)'' and inserting 
                        ``clause (i)'';
                            (iii) in clause (ii), by striking ``that 
                        enters into force'' and all that follows 
                        through ``et seq.)'' and inserting ``that 
                        enters into force thereafter'';
                            (iv) by redesignating clauses (i) through 
                        (v) as subclauses (I) through (V), 
                        respectively; and
                            (v) by redesignating subparagraph (C) as 
                        clause (iii);
                    (D) in subparagraph (D)--
                            (i) by moving such subparagraph 2 ems to 
                        the right;
                            (ii) in clause (i)--
                                    (I) in the matter preceding 
                                subclause (I), by striking 
                                ``subparagraph (A)'' and inserting 
                                ``clause (i)'';
                                    (II) in subclause (I), by striking 
                                ``clause (i) of subparagraph (A)'' and 
                                inserting ``subclause (I) of clause 
                                (i)'';
                                    (III) in subclause (II), by 
                                striking ``clause (ii) of subparagraph 
                                (A)'' and inserting ``subclause (II) of 
                                clause (i)'';
                                    (IV) by redesignating subclauses 
                                (I) and (II) as items (aa) and (bb), 
                                respectively; and
                                    (V) by redesignating clause (i) as 
                                subclause (I);
                            (iii) in clause (ii)--
                                    (I) in the matter preceding 
                                subclause (I), by striking 
                                ``subparagraph (A)'' and inserting 
                                ``clause (i)'';
                                    (II) in subclause (I), by striking 
                                ``clause (i) of subparagraph (A)'' and 
                                inserting ``subclause (I) of clause 
                                (i)'';
                                    (III) in subclause (II), by 
                                striking ``clause (ii) of subparagraph 
                                (A)'' and inserting ``subclause (II) of 
                                clause (i)'';
                                    (IV) by redesignating subclauses 
                                (I) and (II) as items (aa) and (bb), 
                                respectively; and
                                    (V) by redesignating clause (ii) as 
                                subclause (II);
                            (iv) in clause (iii)--
                                    (I) by striking ``clause (i)(I) or 
                                (ii)(I)'' each place it appears and 
                                inserting ``subclause (I)(aa) or 
                                (II)(aa)'';
                                    (II) by redesignating subclauses 
                                (I) and (II) as items (aa) and (bb), 
                                respectively; and
                                    (III) by redesignating clause (iii) 
                                as subclause (III);
                            (v) by amending clause (iv) to read as 
                        follows:
                                    ``(IV) Inclusion in calculation of 
                                other articles receiving preferential 
                                treatment.--Entries of apparel articles 
                                that receive preferential treatment 
                                under any provision of law other than 
                                this subparagraph or are subject to the 
                                `General' column 1 rate of duty under 
                                the HTS are not included in the annual 
                                aggregation under subclause (I) or (II) 
                                unless the producer or entity 
                                controlling production elects, at the 
                                time the annual aggregation calculation 
                                is made, to include such entries in 
                                such aggregation.''; and
                            (vi) by redesignating subparagraph (D) as 
                        clause (iv);
                    (E) in subparagraph (E)--
                            (i) by moving such subparagraph 2 ems to 
                        the right;
                            (ii) in clause (i)--
                                    (I) by redesignating subclauses (I) 
                                through (III) as items (aa) through 
                                (cc), respectively; and
                                    (II) by redesignating clause (i) as 
                                subclause (I);
                            (iii) in clause (ii)--
                                    (I) by striking ``subparagraph 
                                (C)'' and inserting ``clause (iii)''; 
                                and
                                    (II) by redesignating clause (ii) 
                                as subclause (II); and
                            (iv) by redesignating subparagraph (E) as 
                        clause (v);
                    (F) in subparagraph (F)--
                            (i) by moving such subparagraph 2 ems to 
                        the right;
                            (ii) in clause (i)--
                                    (I) by striking ``The Bureau of 
                                Customs and Border Protection'' and 
                                inserting ``U.S. Customs and Border 
                                Protection'';
                                    (II) by striking ``subparagraphs 
                                (A) and (D)'' and inserting ``clauses 
                                (i) and (iv)''; and
                                    (III) by redesignating clause (i) 
                                as subclause (I);
                            (iii) in clause (ii)--
                                    (I) in the matter preceding 
                                subclause (I)--
                                            (aa) by striking ``the 
                                        Bureau of Customs and Border 
                                        Protection'' and inserting 
                                        ``U.S. Customs and Border 
                                        Protection'';
                                            (bb) by striking 
                                        ``subparagraph (A)'' each place 
                                        it appears and inserting 
                                        ``clause (i)''; and
                                            (cc) by striking 
                                        ``subparagraph (D)'' and 
                                        inserting ``clause (iv)'';
                                    (II) in subclause (I), by striking 
                                ``clause (i) of subparagraph (A)'' and 
                                inserting ``subclause (I) of clause 
                                (i)'';
                                    (III) in subclause (II), by 
                                striking ``clause (ii) of subparagraph 
                                (A)'' and inserting ``subclause (II) of 
                                clause (i)'';
                                    (IV) in the matter following 
                                subclause (II), by striking 
                                ``subparagraph (E)(i)'' and inserting 
                                ``clause (v)(I)'';
                                    (V) by redesignating subclauses (I) 
                                and (II) as items (aa) and (bb), 
                                respectively; and
                                    (VI) by redesignating clause (ii) 
                                as subclause (II);
                            (iv) in clause (iii)--
                                    (I) in subclause (I)--
                                            (aa) by striking 
                                        ``paragraph (1)'' and inserting 
                                        ``subparagraph (A)''; and
                                            (bb) by striking 
                                        ``subparagraph (A) or (D)'' and 
                                        inserting ``clause (i) or 
                                        (iv)'';
                                    (II) in subclause (II), by striking 
                                ``clause (ii) of this subparagraph'' 
                                and inserting ``subclause (II) of this 
                                clause'';
                                    (III) in the matter following 
                                subclause (II)--
                                            (aa) by striking ``the 
                                        Bureau of Customs and Border 
                                        Protection'' each place it 
                                        appears and inserting ``U.S. 
                                        Customs and Border 
                                        Protection''; and
                                            (bb) by striking 
                                        ``subclause (II)'' and 
                                        inserting ``item (bb)''; and
                                    (IV) in item (bb)--
                                            (aa) by striking 
                                        ``paragraph (1)'' and inserting 
                                        ``subparagraph (A)''; and
                                            (bb) by striking 
                                        ``subparagraph (A) or (D)'' and 
                                        inserting ``clause (i) or 
                                        (iv)''; and
                                    (V) in the matter following item 
                                (bb), by striking ``paragraph (1)'' and 
                                inserting ``subparagraph (A)'';
                                    (VI) by redesignating items (aa) 
                                and (bb) as subitems (AA) and (BB), 
                                respectively;
                                    (VII) by redesignating subclauses 
                                (I) and (II) as items (aa) and (bb), 
                                respectively; and
                                    (VIII) by redesignating clause 
                                (iii) as subclause (III); and
                            (v) by redesignating subparagraph (F) as 
                        clause (vi);
                    (G) in subparagraph (G)--
                            (i) by moving such subparagraph 2 ems to 
                        the right;
                            (ii) in clause (i)--
                                    (I) in the matter preceding 
                                subclause (I), by striking 
                                ``subparagraph (A) or (D)'' and 
                                inserting ``clause (i) or (iv)'';
                                    (II) in subclause (II)--
                                            (aa) in item (dd), by 
                                        striking ``under the Bipartisan 
                                        Trade Promotion Authority Act 
                                        of 2002'' and inserting ``with 
                                        respect to the United States''; 
                                        and
                                            (bb) by redesignating items 
                                        (aa) through (dd) as subitems 
                                        (AA) through (DD), 
                                        respectively;
                                    (III) by redesignating subclauses 
                                (I) and (II) as items (aa) and (bb), 
                                respectively; and
                                    (IV) by redesignating clause (i) as 
                                subclause (I);
                            (iii) in clause (ii)--
                                    (I) in subclause (I), by striking 
                                ``clause (i)(I)'' and inserting 
                                ``subclause (I)(aa)'';
                                    (II) in subclause (II), by striking 
                                ``clause (i)(II)'' and inserting 
                                ``subclause (I)(bb)'';
                                    (III) by redesignating subclauses 
                                (I) and (II) as items (aa) and (bb), 
                                respectively; and
                                    (IV) by redesignating clause (ii) 
                                as subclause (II); and
                            (iv) by redesignating subparagraph (G) as 
                        clause (vii); and
                    (H) by striking ``(2) Apparel articles described.--
                '' and inserting the following:
                    ``(B) Apparel articles described.--''.
            (4) Paragraph (3) is amended--
                    (A) by redesignating such paragraph as subparagraph 
                (C) and moving it 2 ems to the right;
                    (B) by striking ``paragraph (1)'' each place it 
                appears and inserting ``subparagraph (A)''; and
                    (C) in the table--
                            (i) by striking ``1.5 percent'' and 
                        inserting ``1.25 percent'';
                            (ii) by striking ``1.75 percent'' and 
                        inserting ``1.25 percent''; and
                            (iii) by striking ``2 percent'' and 
                        inserting ``1.25 percent''.
            (5) The following is added after subparagraph (C), as 
        redesignated by paragraph (4)(A) of this subsection:
                    ``(D) Other preferential treatment not affected by 
                quantitative limitations.--Any apparel article that 
                qualifies for preferential treatment under paragraph 
                (2), (3), (4), or (5) or any other provision of this 
                title shall not be subject to, or included in the 
                calculation of, the quantitative limitations under 
                subparagraph (C).''.
    (b) Special Rule for Woven Articles and Certain Knit Articles.--
Section 213A(b) of the Carribean Basin Economic Recovery Act is amended 
by striking paragraph (4) and inserting the following:
            ``(2) Special rule for woven articles and certain knit 
        articles.--
                    ``(A) Special rule for articles of chapter 62 of 
                the hts.--
                            ``(i) General rule.--Any apparel article 
                        classifiable under chapter 62 of the HTS that 
                        is wholly assembled, or knit-to-shape, in Haiti 
                        from any combination of fabrics, fabric 
                        components, components knit-to-shape, or yarns 
                        and is imported directly from Haiti or the 
                        Dominican Republic shall enter the United 
                        States free of duty, subject to clauses (ii) 
                        and (iii), without regard to the source of the 
                        fabric, fabric components, components knit-to-
                        shape, or yarns from which the article is made.
                            ``(ii) Limitation.--The preferential 
                        treatment described in clause (i) shall be 
                        extended, in the 1-year period beginning 
                        October 1, 2008, and in each of the 9 
                        succeeding 1-year periods, to not more than 
                        70,000,000 square meter equivalents of apparel 
                        articles described in such clause.
                            ``(iii) Other preferential treatment not 
                        affected by quantitative limitation.--Any 
                        apparel article that qualifies for preferential 
                        treatment under paragraph (1), (3), (4), or (5) 
                        or subparagraph (B) of this paragraph or any 
                        other provision of this title shall not be 
                        subject to, or included in the calculation of, 
                        the quantitative limitation under clause (ii).
                    ``(B) Special rule for certain articles of chapter 
                61 of the hts.--
                            ``(i) General rule.--Any apparel article 
                        classifiable under chapter 61 of the HTS that 
                        is wholly assembled, or knit-to-shape, in Haiti 
                        from any combination of fabrics, fabric 
                        components, components knit-to-shape, or yarns 
                        and is imported directly from Haiti or the 
                        Dominican Republic shall enter the United 
                        States free of duty, subject to clauses (ii), 
                        (iii), and (iv), without regard to the source 
                        of the fabric, fabric components, components 
                        knit-to-shape, or yarns from which the article 
                        is made.
                            ``(ii) Exclusions.--The preferential 
                        treatment described in clause (i) shall not 
                        apply to the following:
                                    ``(I) The following apparel 
                                articles of cotton, for men or boys, 
                                that are classifiable under subheading 
                                6109.10.00 of the HTS:
                                            ``(aa) All white T-shirts, 
                                        with short hemmed sleeves and 
                                        hemmed bottom, with crew or 
                                        round neckline or with V-neck 
                                        and with a mitered seam at the 
                                        center of the V, and without 
                                        pockets, trim, or embroidery.
                                            ``(bb) All white singlets, 
                                        without pockets, trim, or 
                                        embroidery.
                                            ``(cc) Other T-shirts, but 
                                        not including thermal 
                                        undershirts.
                                    ``(II) T-shirts for men or boys 
                                that are classifiable under subheading 
                                6109.90.10.
                                    ``(III) The following apparel 
                                articles of cotton, for men or boys, 
                                that are classifiable under subheading 
                                6110.20.20 of the HTS:
                                            ``(aa) Sweatshirts.
                                            ``(bb) Pullovers, other 
                                        than sweaters, vests, or 
                                        garments imported as part of 
                                        playsuits.
                                    ``(IV) Sweatshirts for men or boys, 
                                of man-made fibers and containing less 
                                than 65 percent by weight of man-made 
                                fibers, that are classifiable under 
                                subheading 6110.30.30 of the HTS.
                            ``(iii) Limitation.--The preferential 
                        treatment described in clause (i) shall be 
                        extended, in the 1-year period beginning 
                        October 1, 2008, and in each of the 9 
                        succeeding 1-year periods, to not more than 
                        70,000,000 square meter equivalents of apparel 
                        articles described in such clause.
                            ``(iv) Other preferential treatment not 
                        affected by quantitative limitation.--Any 
                        apparel article that qualifies for preferential 
                        treatment under paragraph (1), (3), (4), or (5) 
                        or subparagraph (A) of this paragraph or any 
                        other provision of this title shall not be 
                        subject to, or included in the calculation of, 
                        the quantitative limitation under clause 
                        (iii).''.
    (c) Single Transformation Rules Not Subject to Quantitative 
Limitations.--Section 213A(b) of the Caribbean Basin Economic Recovery 
Act is amended by striking paragraph (5) and inserting the following:
            ``(3) Apparel and other articles subject to certain 
        assembly rules.--
                    ``(A) Brassieres.--Any apparel article classifiable 
                under subheading 6212.10 of the HTS that is wholly 
                assembled, or knit-to-shape, in Haiti from any 
                combination of fabrics, fabric components, components 
                knit-to-shape, or yarns and is imported directly from 
                Haiti or the Dominican Republic shall enter the United 
                States free of duty, without regard to the source of 
                the fabric, fabric components, components knit-to-
                shape, or yarns from which the article is made.
                    ``(B) Other apparel articles.--Any of the following 
                apparel articles that is wholly assembled, or knit-to-
                shape, in Haiti from any combination of fabrics, fabric 
                components, components knit-to-shape, or yarns and is 
                imported directly from Haiti or the Dominican Republic 
                shall enter the United States free of duty, without 
                regard to the source of the fabric, fabric components, 
                components knit-to-shape, or yarns from which the 
                article is made:
                            ``(i) Any apparel article that is of a type 
                        listed in chapter rule 3, 4, or 5 for chapter 
                        61 of the HTS (as such chapter rules are 
                        contained in section A of the Annex to 
                        Proclamation 8213 of the President of December 
                        20, 2007) as being excluded from the scope of 
                        such chapter rule, when such chapter rule is 
                        applied to determine whether an apparel article 
                        is an originating good for purposes of general 
                        note 29(n) to the HTS, except that, for 
                        purposes of this clause, reference in such 
                        chapter rules to `6104.12.00' shall be deemed 
                        to be a reference to `6104.19.60'.
                            ``(ii)(I) Subject to subclause (II), any 
                        apparel article that is of a type listed in 
                        chapter rule 3(a), 4(a), or 5(a) for chapter 62 
                        of the HTS, as such chapter rules are contained 
                        in paragraph 9 of section A of the Annex to 
                        Proclamation 8213 of the President of December 
                        20, 2007.
                            ``(II) Subclause (I) shall not include any 
                        apparel article to which subparagraph (A) of 
                        this paragraph applies.
                    ``(C) Luggage and similar items.--Any article 
                classifiable under subheading 4202.12, 4202.22, 4202.32 
                or 4202.92 of the HTS that is wholly assembled in Haiti 
                and is imported directly from Haiti or the Dominican 
                Republic shall enter the United States free of duty, 
                without regard to the source of the fabric, components, 
                or materials from which the article is made.
                    ``(D) Headgear.--Any article classifiable under 
                heading 6501, 6502, or 6504 of the HTS, or under 
                subheading 6505.90 of the HTS, that is wholly 
                assembled, knit-to-shape, or formed in Haiti from any 
                combination of fabrics, fabric components, components 
                knit-to-shape, or yarns and is imported directly from 
                Haiti or the Dominican Republic shall enter the United 
                States free of duty, without regard to the source of 
                the fabric, fabric components, components knit-to-
                shape, or yarns from which the article is made.
                    ``(E) Certain sleepwear.--Any of the following 
                apparel articles that is wholly assembled, or knit-to-
                shape, in Haiti from any combination of fabrics, fabric 
                components, components knit-to-shape, or yarns and is 
                imported directly from Haiti or the Dominican Republic 
                shall enter the United States free of duty, without 
                regard to the source of the fabric, fabric components, 
                components knit-to-shape, or yarns from which the 
                article is made:
                            ``(i) Pajama bottoms and other sleepwear 
                        for women and girls, of cotton, that are 
                        classifiable under subheading 6208.91.30, or of 
                        man-made fibers, that are classifiable under 
                        subheading 6208.92.00.
                            ``(ii) Pajama bottoms and other sleepwear 
                        for girls, of other textile materials, that are 
                        classifiable under subheading 6208.99.20.''.
    (d) Earned Import Allowance Rules.--Section 231A(b) of the 
Caribbean Basin Economic Recovery Act is amended by adding at the end 
the following new paragraph:
            ``(4) Earned import allowance rule.--
                    ``(A) In general.--Apparel articles wholly 
                assembled, or knit-to-shape, in Haiti from any 
                combination of fabrics, fabric components, components 
                knit-to-shape, or yarns and imported directly from 
                Haiti or the Dominican Republic shall enter the United 
                States free of duty, without regard to the source of 
                the fabric, fabric components, components knit-to-
                shape, or yarns from which the articles are made, if 
                such apparel articles are accompanied by an earned 
                import allowance certificate that reflects the amount 
                of credits equal to the total square meter equivalents 
                of such apparel articles, in accordance with the 
                program established under subparagraph (B). For 
                purposes of determining the quantity of square meter 
                equivalents under this subparagraph, the conversion 
                factors listed in `Correlation: U.S. Textile and 
                Apparel Industry Category System with the Harmonized 
                Tariff Schedule of the United States of America, 2008', 
                or its successor publications, of the United States 
                Department of Commerce, shall apply.
                    ``(B) Earned import allowance program.--
                            ``(i) Establishment.--The Secretary of 
                        Commerce shall establish a program to provide 
                        earned import allowance certificates to any 
                        producer or entity controlling production for 
                        purposes of subparagraph (A), based on the 
                        elements described in clause (ii).
                            ``(ii) Elements.--The elements referred to 
                        in clause (i) are the following:
                                    ``(I) One credit shall be issued to 
                                a producer or an entity controlling 
                                production for every three square meter 
                                equivalents of qualifying woven fabric 
                                or qualifying knit fabric that the 
                                producer or entity controlling 
                                production can demonstrate that it 
                                purchased for the manufacture in Haiti 
                                of articles like or similar to any 
                                article eligible for preferential 
                                treatment under subparagraph (A). The 
                                Secretary of Commerce shall, if 
                                requested by a producer or entity 
                                controlling production, create and 
                                maintain an account for such producer 
                                or entity controlling production, into 
                                which such credits shall be deposited.
                                    ``(II) Such producer or entity 
                                controlling production may redeem 
                                credits issued under subclause (I) for 
                                earned import allowance certificates 
                                reflecting such number of earned 
                                credits as the producer or entity may 
                                request and has available.
                                    ``(III) The Secretary of Commerce 
                                may require any textile mill or other 
                                entity located in the United States 
                                that exports to Haiti qualifying woven 
                                fabric or qualifying knit fabric to 
                                submit, upon such export or upon 
                                request, documentation, such as a 
                                Shipper's Export Declaration, to the 
                                Secretary of Commerce--
                                            ``(aa) verifying that the 
                                        qualifying woven fabric or 
                                        qualifying knit fabric was 
                                        exported to a producer in Haiti 
                                        or to an entity controlling 
                                        production; and
                                            ``(bb) identifying such 
                                        producer or entity controlling 
                                        production, and the quantity 
                                        and description of qualifying 
                                        woven fabric or qualifying knit 
                                        fabric exported to such 
                                        producer or entity controlling 
                                        production.
                                    ``(IV) The Secretary of Commerce 
                                may require that a producer or entity 
                                controlling production submit 
                                documentation to verify purchases of 
                                qualifying woven fabric or qualifying 
                                knit fabric.
                                    ``(V) The Secretary of Commerce may 
                                make available to each person or entity 
                                identified in documentation submitted 
                                under subclause (III) or (IV) 
                                information contained in such 
                                documentation that relates to the 
                                purchase of qualifying woven fabric or 
                                qualifying knit fabric involving such 
                                person or entity.
                                    ``(VI) The program under this 
                                subparagraph shall be established so as 
                                to allow, to the extent feasible, the 
                                submission, storage, retrieval, and 
                                disclosure of information in electronic 
                                format, including information with 
                                respect to the earned import allowance 
                                certificates required under 
                                subparagraph (A)(i).
                                    ``(VII) The Secretary of Commerce 
                                may reconcile discrepancies in 
                                information provided under subclause 
                                (III) or (IV) and verify the accuracy 
                                of such information.
                                    ``(VIII) The Secretary of Commerce 
                                shall establish procedures to carry out 
                                the program under this subparagraph and 
                                may establish additional requirements 
                                to carry out this subparagraph. Such 
                                additional requirements may include--
                                            ``(aa) submissions by 
                                        textile mills or other entities 
                                        in the United States 
                                        documenting exports of yarns 
                                        wholly formed in the United 
                                        States to countries described 
                                        in paragraph (1)(B)(iii) for 
                                        the manufacture of qualifying 
                                        knit fabric; and
                                            ``(bb) procedures imposed 
                                        on producers or entities 
                                        controlling production to allow 
                                        the Secretary of Commerce to 
                                        obtain and verify information 
                                        relating to the production of 
                                        qualifying knit fabric.
                            ``(iii) Qualifying woven fabric defined.--
                        For purposes of this subparagraph, the term 
                        `qualifying woven fabric' means fabric wholly 
                        formed in the United States from yarns wholly 
                        formed in the United States, except that--
                                    ``(I) fabric otherwise eligible as 
                                qualifying woven fabric shall not be 
                                ineligible as qualifying woven fabric 
                                because the fabric contains nylon 
                                filament yarn to which section 
                                213(b)(2)(A)(vii)(IV) applies;
                                    ``(II) fabric that would otherwise 
                                be ineligible as qualifying woven 
                                fabric because the fabric contains 
                                yarns not wholly formed in the United 
                                States shall not be ineligible as 
                                qualifying woven fabric if the total 
                                weight of all such yarns is not more 
                                than 10 percent of the total weight of 
                                the fabric; and
                                    ``(III) fabric otherwise eligible 
                                as qualifying woven fabric shall not be 
                                ineligible as qualifying fabric because 
                                the fabric contains yarns covered by 
                                clause (i) or (ii) of paragraph (5)(A).
                            ``(iv) Qualifying knit fabric defined.--For 
                        purposes of this subparagraph, the term 
                        `qualifying knit fabric' means fabric or knit-
                        to-shape components wholly formed or knit-to-
                        shape in any country or any combination of 
                        countries described in paragraph (1)(B)(iii), 
                        from yarns wholly formed in the United States, 
                        except that--
                                    ``(I) fabric or knit-to-shape 
                                components otherwise eligible as 
                                qualifying knit fabric shall not be 
                                ineligible as qualifying knit fabric 
                                because the fabric or knit-to-shape 
                                components contain nylon filament yarn 
                                to which section 213(b)(2)(A)(vii)(IV) 
                                applies;
                                    ``(II) fabric or knit-to-shape 
                                components that would otherwise be 
                                ineligible as qualifying knit fabric 
                                because the fabric or knit-to-shape 
                                components contain yarns not wholly 
                                formed in the United States shall not 
                                be ineligible as qualifying knit fabric 
                                if the total weight of all such yarns 
                                is not more than 10 percent of the 
                                total weight of the fabric or knit-to-
                                shape components; and
                                    ``(III) fabric or knit-to-shape 
                                components otherwise eligible as 
                                qualifying knit fabric shall not be 
                                ineligible as qualifying knit fabric 
                                because the fabric or knit-to-shape 
                                components contain yarns covered by 
                                clause (i) or (ii) of paragraph (5)(A).
                    ``(C) Review by united states government 
                accountability office.--The United States Government 
                Accountability Office shall review the program 
                established under subparagraph (B) annually for the 
                purpose of evaluating the effectiveness of, and making 
                recommendations for improvements in, the program.
                    ``(D) Enforcement provisions.--
                            ``(i) Fraudulent claims of preference.--Any 
                        person who makes a false claim for preference 
                        under the program established under 
                        subparagraph (B) shall be subject to any 
                        applicable civil or criminal penalty that may 
                        be imposed under the customs laws of the United 
                        States or under title 18, United States Code.
                            ``(ii) Penalties for other fraudulent 
                        information.--The Secretary of Commerce may 
                        establish and impose penalties for the 
                        submission to the Secretary of Commerce of 
                        fraudulent information under the program 
                        established under subparagraph (B), other than 
                        a claim described in clause (i).''.
    (e) Short Supply Rules .--Section 213A(b) of the Caribbean Basin 
Economic Recovery Act is amended by adding at the end the following:
            ``(5) Short supply provision.--
                    ``(A) In general.--Any apparel article that is 
                wholly assembled, or knit-to-shape, in Haiti from any 
                combination of fabrics, fabric components, components 
                knit-to-shape, or yarns and is imported directly from 
                Haiti or the Dominican Republic shall enter the United 
                States free of duty, without regard to the source of 
                the fabrics, fabric components, components knit-to-
                shape, or yarns from which the article is made, if the 
                fabrics, fabric components, components knit-to-shape, 
                or yarns comprising the component that determines the 
                tariff classification of the article are of any of the 
                following:
                            ``(i) Fabrics or yarns, to the extent that 
                        apparel articles of such fabrics or yarns would 
                        be eligible for preferential treatment, without 
                        regard to the source of the fabrics or yarns, 
                        under Annex 401 of the NAFTA.
                            ``(ii) Fabrics or yarns, to the extent that 
                        such fabrics or yarns are designated as not 
                        being available in commercial quantities for 
                        purposes of--
                                    ``(I) section 213(b)(2)(A)(v) of 
                                this Act;
                                    ``(II) section 112(b)(5) of the 
                                African Growth and Opportunity Act;
                                    ``(III) clause (i)(III) or (ii) of 
                                section 204(b)(3)(B) of the Andean 
                                Trade Preference Act; or
                                    ``(IV) any other provision, 
                                relating to determining whether a 
                                textile or apparel article is an 
                                originating good eligible for 
                                preferential treatment, of a law that 
                                implements a free trade agreement 
                                entered into by the United States that 
                                is in effect at the time the claim for 
                                preferential treatment is made.
                    ``(B) Removal of designation of fabrics or yarns 
                not available in commercial quantities.--If the 
                President determines that--
                            ``(i) any fabric or yarn described in 
                        clause (i) of subparagraph (A) was determined 
                        to be eligible for preferential treatment, or
                            ``(ii) any fabric or yarn described in 
                        clause (ii) of subparagraph (A) was designated 
                        as not being available in commercial 
                        quantities,
                on the basis of fraud, the President is authorized to 
                remove the eligibility or designation (as the case may 
                be) of that fabric or yarn with respect to articles 
                entered after such removal.''.
    (f) Miscellaneous Provisions.--
            (1) Relationship to other preferential programs.--Section 
        213A(b) of the Caribbean Basin Economic Recovery Act is amended 
        by adding at the end the following:
            ``(6) Other preferential treatment not affected.--The duty-
        free treatment provided under this subsection is in addition to 
        any other preferential treatment under this title.''.
            (2) Definitions.--Section 213A(a) of the Caribbean Basin 
        Economic Recovery Act (19 U.S.C. 2703a(a)) is amended by adding 
        at the end the following:
            ``(3) Imported directly from haiti or the dominican 
        republic.--Articles are `imported directly from Haiti or the 
        Dominican Republic' if--
                    ``(A) the articles are shipped directly from Haiti 
                or the Dominican Republic into the United States 
                without passing through the territory of any 
                intermediate country; or
                    ``(B) the articles are shipped from Haiti or the 
                Dominican Republic into the United States through the 
                territory of an intermediate country, and--
                            ``(i) the articles in the shipment do not 
                        enter into the commerce of any intermediate 
                        country, and the invoices, bills of lading, and 
                        other shipping documents specify the United 
                        States as the final destination; or
                            ``(ii) the invoices and other documents do 
                        not specify the United States as the final 
                        destination, but the articles in the shipment--
                                    ``(I) remain under the control of 
                                the customs authority in the 
                                intermediate country;
                                    ``(II) do not enter into the 
                                commerce of the intermediate country 
                                except for the purpose of a sale other 
                                than at retail; and
                                    ``(III) have not been subjected to 
                                operations in the intermediate country 
                                other than loading, unloading, or other 
                                activities necessary to preserve the 
                                articles in good condition.
            ``(4) Knit-to-shape.--A good is `knit-to-shape' if 50 
        percent or more of the exterior surface area of the good is 
        formed by major parts that have been knitted or crocheted 
        directly to the shape used in the good, with no consideration 
        being given to patch pockets, appliques, or the like. Minor 
        cutting, trimming, or sewing of those major parts shall not 
        affect the determination of whether a good is `knit-to-shape.'
            ``(5) Wholly assembled.--A good is `wholly assembled' in 
        Haiti if all components, of which there must be at least two, 
        pre-existed in essentially the same condition as found in the 
        finished good and were combined to form the finished good in 
        Haiti. Minor attachments and minor embellishments (for example, 
        appliques, beads, spangles, embroidery, and buttons) not 
        appreciably affecting the identity of the good, and minor 
        subassemblies (for example, collars, cuffs, plackets, and 
        pockets), shall not affect the determination of whether a good 
        is `wholly assembled' in Haiti.''.
    (g) Termination.--Section 213A of the Caribbean Basin Economic 
Recovery Act (19 U.S.C. 2703a) is amended by adding at the end the 
following new subsection:
    ``(g) Termination.--Except as provided in subsection (b)(1), the 
duty-free treatment provided under this section shall remain in effect 
until September 30, 2018.''.
    (h) Conforming Amendments.--Subsection (e)(1) of section 213A of 
the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703a(e)(1)) is 
amended by striking ``the Bureau of Customs and Border Protection'' 
each place it appears and inserting ``U.S. Customs and Border 
Protection''.

SEC. 15403. LABOR OMBUDSMAN AND TECHNICAL ASSISTANCE IMPROVEMENT AND 
              COMPLIANCE NEEDS ASSESSMENT AND REMEDIATION PROGRAM.

    Section 213A of the Caribbean Basin Economic Recovery Act (19 
U.S.C. 2703a), as amended by section 15402 of this Act, is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraph (5) as paragraph 
                (8):
                    (B) by redesignating paragraphs (2) through (4) as 
                paragraphs (4) through (6), respectively;
                    (C) by inserting after paragraph (1) the following 
                new paragraphs:
            ``(2) Appropriate congressional committees.--. The term 
        ``appropriate congressional committees'' means the Committee on 
        Finance of the Senate and the Committee on Ways and Means of 
        the House of Representatives.
            ``(3) Core labor standards.--The term ``core labor 
        standards'' means--
                    ``(A) freedom of association;
                    ``(B) the effective recognition of the right to 
                bargain collectively;
                    ``(C) the elimination of all forms of compulsory or 
                forced labor;
                    ``(D) the effective abolition of child labor and a 
                prohibition on the worst forms of child labor; and
                    ``(E) the elimination of discrimination in respect 
                of employment and occupation.''; and
                    (D) by inserting after paragraph (6) (as 
                redesignated) the following new paragraph:
            ``(7) TAICNAR program.--The term `TAICNAR Program' means 
        the Technical Assistance Improvement and Compliance Needs 
        Assessment and Remediation Program established pursuant to 
        subsection (e).'';
            (2) by redesignating subsections (e), (f), and (g) as 
        subsections (f), (g), and (h), respectively; and
            (3) by inserting after subsection (d) the following new 
        subsection:
    ``(e) Technical Assistance Improvement and Compliance Needs 
Assessment and Remediation Program.--
            ``(1) Continued eligibility for preferences.--
                    ``(A) Presidential certification of compliance by 
                haiti with requirements.--Upon the expiration of the 
                16-month period beginning on the date of the enactment 
                of the Haitian Hemispheric Opportunity through 
                Partnership Encouragement Act of 2008, Haiti shall 
                continue to be eligible for the preferential treatment 
                provided under subsection (b) only if the President 
                determines and certifies to the Congress that--
                            ``(i) Haiti has implemented the 
                        requirements set forth in paragraphs (2) and 
                        (3); and
                            ``(ii) Haiti has agreed to require 
                        producers of articles for which duty-free 
                        treatment may be requested under subsection (b) 
                        to participate in the TAICNAR Program described 
                        in paragraph (3) and has developed a system to 
                        ensure participation in such program by such 
                        producers, including by developing and 
                        maintaining the registry described in paragraph 
                        (2)(B)(i).
                    ``(B) Extension.--The President may extend the 
                period for compliance by Haiti under subparagraph (A) 
                if the President--
                            ``(i) determines that Haiti has made a good 
                        faith effort toward such compliance and has 
                        agreed to take additional steps to come into 
                        full compliance that are satisfactory to the 
                        President; and
                            ``(ii) provides to the appropriate 
                        congressional committees, not later than 6 
                        months after the last day of the 16-month 
                        period specified in subparagraph (A), and every 
                        6 months thereafter, a report identifying the 
                        steps that Haiti has agreed to take to come 
                        into full compliance and the progress made over 
                        the preceding 6-month period in implementing 
                        such steps.
                    ``(C) Continuing compliance.--
                            ``(i) Termination of preferential 
                        treatment.--If, after making a certification 
                        under subparagraph (A), the President 
                        determines that Haiti is no longer meeting the 
                        requirements set forth in subparagraph (A), the 
                        President shall terminate the preferential 
                        treatment provided under subsection (b), unless 
                        the President determines, after consulting with 
                        the appropriate congressional committees, that 
                        meeting such requirements is not practicable 
                        because of extraordinary circumstances existing 
                        in Haiti when the determination is made.
                            ``(ii) Subsequent compliance.--If the 
                        President, after terminating preferential 
                        treatment under clause (i), determines that 
                        Haiti is meeting the requirements set forth in 
                        subparagraph (A), the President shall reinstate 
                        the application of preferential treatment under 
                        subsection (b).
            ``(2) Labor ombudsman.--
                    ``(A) In general.--The requirement under this 
                paragraph is that Haiti has established an independent 
                Labor Ombudsman's Office within the national government 
                that--
                            ``(i) reports directly to the President of 
                        Haiti;
                            ``(ii) is headed by a Labor Ombudsman 
                        chosen by the President of Haiti, in 
                        consultation with Haitian labor unions and 
                        industry associations; and
                            ``(iii) is vested with the authority to 
                        perform the functions described in subparagraph 
                        (B).
                    ``(B) Functions.--The functions of the Labor 
                Ombudsman's Office shall include--
                            ``(i) developing and maintaining a registry 
                        of producers of articles for which duty-free 
                        treatment may be requested under subsection 
                        (b), and developing, in consultation and 
                        coordination with any other appropriate 
                        officials of the Government of Haiti, a system 
                        to ensure participation by such producers in 
                        the TAICNAR Program described in paragraph (3);
                            ``(ii) overseeing the implementation of the 
                        TAICNAR Program described in paragraph (3);
                            ``(iii) receiving and investigating 
                        comments from any interested party regarding 
                        the conditions described in paragraph (3)(B) in 
                        facilities of producers listed in the registry 
                        described in clause (i) and, where appropriate, 
                        referring such comments or the result of such 
                        investigations to the appropriate Haitian 
                        authorities, or to the entity operating the 
                        TAICNAR Program described in paragraph (3);
                            ``(iv) assisting, in consultation and 
                        coordination with any other appropriate Haitian 
                        authorities, producers listed in the registry 
                        described in clause (i) in meeting the 
                        conditions set forth in paragraph (3)(B); and
                            ``(v) coordinating, with the assistance of 
                        the entity operating the TAICNAR Program 
                        described in paragraph (3), a tripartite 
                        committee comprised of appropriate 
                        representatives of government agencies, 
                        employers, and workers, as well as other 
                        relevant interested parties, for the purposes 
                        of evaluating progress in implementing the 
                        TAICNAR Program described in paragraph (3), and 
                        consulting on improving core labor standards 
                        and working conditions in the textile and 
                        apparel sector in Haiti, and on other matters 
                        of common concern relating to such core labor 
                        standards and working conditions.
            ``(3) Technical assistance improvement and compliance needs 
        assessment and remediation program.--
                    ``(A) In general.--The requirement under this 
                paragraph is that Haiti, in cooperation with the 
                International Labor Organization, has established a 
                Technical Assistance Improvement and Compliance Needs 
                Assessment and Remediation Program meeting the 
                requirements under subparagraph (C)--
                            ``(i) to assess compliance by producers 
                        listed in the registry described in paragraph 
                        (2)(B)(i) with the conditions set forth in 
                        subparagraph (B) and to assist such producers 
                        in meeting such conditions; and
                            ``(ii) to provide assistance to improve the 
                        capacity of the Government of Haiti--
                                    ``(I) to inspect facilities of 
                                producers listed in the registry 
                                described in paragraph (2)(B)(i); and
                                    ``(II) to enforce national labor 
                                laws and resolve labor disputes, 
                                including through measures described in 
                                subparagraph (E).
                    ``(B) Conditions described.--The conditions 
                referred to in subparagraph (A) are--
                            ``(i) compliance with core labor standards; 
                        and
                            ``(ii) compliance with the labor laws of 
                        Haiti that relate directly to core labor 
                        standards and to ensuring acceptable conditions 
                        of work with respect to minimum wages, hours of 
                        work, and occupational health and safety.
                    ``(C) Requirements.--The requirements for the 
                TAICNAR Program are that the program--
                            ``(i) be operated by the International 
                        Labor Organization (or any subdivision, 
                        instrumentality, or designee thereof), which 
                        prepares the biannual reports described in 
                        subparagraph (D);
                            ``(ii) be developed through a participatory 
                        process that includes the Labor Ombudsman 
                        described in paragraph (2) and appropriate 
                        representatives of government agencies, 
                        employers, and workers;
                            ``(iii) assess compliance by each producer 
                        listed in the registry described in paragraph 
                        (2)(B)(i) with the conditions set forth in 
                        subparagraph (B) and identify any deficiencies 
                        by such producer with respect to meeting such 
                        conditions, including by--
                                    ``(I) conducting unannounced site 
                                visits to manufacturing facilities of 
                                the producer;
                                    ``(II) conducting confidential 
                                interviews separately with workers and 
                                management of the facilities of the 
                                producer;
                                    ``(III) providing to management and 
                                workers, and where applicable, worker 
                                organizations in the facilities of the 
                                producer, on a confidential basis--
                                            ``(aa) the results of the 
                                        assessment carried out under 
                                        this clause; and
                                            ``(bb) specific suggestions 
                                        for remediating any such 
                                        deficiencies;
                            ``(iv) assist the producer in remediating 
                        any deficiencies identified under clause (iii);
                            ``(v) conduct prompt follow-up site visits 
                        to the facilities of the producer to assess 
                        progress on remediation of any deficiencies 
                        identified under clause (iii); and
                            ``(vi) provide training to workers and 
                        management of the producer, and where 
                        appropriate, to other persons or entities, to 
                        promote compliance with subparagraph (B).
                    ``(D) Biannual report.--The biannual reports 
                referred to in subparagraph (C)(i) are a report, by the 
                entity operating the TAICNAR Program, that is published 
                (and available to the public in a readily accessible 
                manner) on a biannual basis, beginning 6 months after 
                Haiti implements the TAICNAR Program under this 
                paragraph, covering the preceding 6-month period, and 
                that includes the following:
                            ``(i) The name of each producer listed in 
                        the registry described in paragraph (2)(B)(i) 
                        that has been identified as having met the 
                        conditions under subparagraph (B).
                            ``(ii) The name of each producer listed in 
                        the registry described in paragraph (2)(B)(i) 
                        that has been identified as having deficiencies 
                        with respect to the conditions under 
                        subparagraph (B), and has failed to remedy such 
                        deficiencies.
                            ``(iii) For each producer listed under 
                        clause (ii)--
                                    ``(I) a description of the 
                                deficiencies found to exist and the 
                                specific suggestions for remediating 
                                such deficiencies made by the entity 
                                operating the TAICNAR Program;
                                    ``(II) a description of the efforts 
                                by the producer to remediate the 
                                deficiencies, including a description 
                                of assistance provided by any entity to 
                                assist in such remediation; and
                                    ``(III) with respect to 
                                deficiencies that have not been 
                                remediated, the amount of time that has 
                                elapsed since the deficiencies were 
                                first identified in a report under this 
                                subparagraph.
                            ``(iv) For each producer identified as 
                        having deficiencies with respect to the 
                        conditions described under subparagraph (B) in 
                        a prior report under this subparagraph, a 
                        description of the progress made in remediating 
                        such deficiencies since the submission of the 
                        prior report, and an assessment of whether any 
                        aspect of such deficiencies persists.
                    ``(E) Capacity building.--The assistance to the 
                Government of Haiti referred to in subparagraph (A)(ii) 
                shall include programs--
                            ``(i) to review the labor laws and 
                        regulations of Haiti and to develop and 
                        implement strategies for bringing the laws and 
                        regulations into conformity with core labor 
                        standards;
                            ``(ii) to develop additional strategies for 
                        facilitating protection of core labor standards 
                        and providing acceptable conditions of work 
                        with respect to minimum wages, hours of work, 
                        and occupational safety and health, including 
                        through legal, regulatory, and institutional 
                        reform;
                            ``(iii) to increase awareness of worker 
                        rights, including under core labor standards 
                        and national labor laws;
                            ``(iv) to promote consultation and 
                        cooperation between government representatives, 
                        employers, worker representatives, and United 
                        States importers on matters relating to core 
                        labor standards and national labor laws;
                            ``(v) to assist the Labor Ombudsman 
                        appointed pursuant to paragraph (2) in 
                        establishing and coordinating operation of the 
                        committee described in paragraph (2)(B)(v);
                            ``(vi) to assist worker representatives in 
                        more fully and effectively advocating on behalf 
                        of their members; and
                            ``(vii) to provide on-the-job training and 
                        technical assistance to labor inspectors, 
                        judicial officers, and other relevant personnel 
                        to build their capacity to enforce national 
                        labor laws and resolve labor disputes.
            ``(4) Compliance with eligibility criteria.--
                    ``(A) Country compliance with worker rights 
                eligibility criteria.--In making a determination of 
                whether Haiti is meeting the requirement set forth in 
                subsection (d)(1)(A)(vi) relating to internationally 
                recognized worker rights, the President shall consider 
                the reports produced under paragraph (3)(D).
                    ``(B) Producer eligibility.--
                            ``(i) Identification of producers.--
                        Beginning in the second calendar year after the 
                        President makes the certification under 
                        paragraph (1)(A), the President shall identify 
                        on a biennial basis whether a producer listed 
                        in the registry described in paragraph 
                        (2)(B)(i) has failed to comply with core labor 
                        standards and with the labor laws of Haiti that 
                        directly relate to and are consistent with core 
                        labor standards.
                            ``(ii) Assistance to producers; withdrawal, 
                        etc., of preferential treatment.--For each 
                        producer that the President identifies under 
                        clause (i), the President shall seek to assist 
                        such producer in coming into compliance with 
                        core labor standards and with the labor laws of 
                        Haiti that directly relate to and are 
                        consistent with core labor standards. If such 
                        efforts fail, the President shall withdraw, 
                        suspend, or limit the application of 
                        preferential treatment under subsection (b) to 
                        articles of such producer.
                            ``(iii) Reinstating preferential 
                        treatment.--If the President, after 
                        withdrawing, suspending, or limiting the 
                        application of preferential treatment under 
                        clause (ii) to articles of a producer, 
                        determines that such producer is complying with 
                        core labor standards and with the labor laws of 
                        Haiti that directly relate to and are 
                        consistent with core labor standards, the 
                        President shall reinstate the application of 
                        preferential treatment under subsection (b) to 
                        the articles of the producer.
                            ``(iv) Consideration of reports.--In making 
                        the identification under clause (i) and the 
                        determination under clause (iii), the President 
                        shall consider the reports made available under 
                        paragraph (3)(D).
            ``(5) Reports by the president.--
                    ``(A) In general.--Not later than one year after 
                the date of the enactment of the Haitian Hemispheric 
                Opportunity through Partnership Encouragement Act of 
                2008, and annually thereafter, the President shall 
                transmit to the appropriate congressional committees a 
                report on the implementation of this subsection during 
                the preceding 1-year period.
                    ``(B) Matters to be included.--Each report required 
                by subparagraph (A) shall include the following:
                            ``(i) An explanation of the efforts of 
                        Haiti, the President, and the International 
                        Labor Organization to carry out this 
                        subsection.
                            ``(ii) A summary of each report produced 
                        under paragraph (3)(D) during the preceding 1-
                        year period and a summary of the findings 
                        contained in such report.
                            ``(iii) Identifications made under 
                        paragraph (4)(B)(i) and determinations made 
                        under paragraph (4)(B)(iii).
            ``(6) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection the sum of 
        $10,000,000 for the period beginning on October 1, 2008, and 
        ending on September 30, 2013.''.

SEC. 15404. PETITION PROCESS.

    Section 213A(d) of the Caribbean Basin Economic Recovery Act (19 
U.S.C. 2703A(d)) is amended by adding at the end the following new 
paragraph:
            ``(4) Petition process.--Any interested party may file a 
        request to have the status of Haiti reviewed with respect to 
        the eligibility requirements listed in paragraph (1), and the 
        President shall provide for this purpose the same procedures as 
        those that are provided for reviewing the status of eligible 
        beneficiary developing countries with respect to the 
        designation criteria listed in subsections (b) and (c) of 
        section 502 of the Trade Act of 1974 (19 U.S.C. 2642 (b) and 
        (c)).''.

SEC. 15405. CONDITIONS REGARDING ENFORCEMENT OF CIRCUMVENTION.

    Section 213A(f) of the Caribbean Basin Economic Recovery Act, as 
redesignated by section 15403(2) of this Act, is amended by adding at 
the end the following new paragraph:
            ``(3) Limitation on goods shipped from the dominican 
        republic.--
                    ``(A) Limitation.--Notwithstanding subsection 
                (a)(5), relating to the definition of `imported 
                directly from Haiti or the Dominican Republic', 
                articles described in subsection (b) that are shipped 
                from the Dominican Republic, directly or through the 
                territory of an intermediate country, whether or not 
                such articles undergo processing in the Dominican 
                Republic, shall not be considered to be `imported 
                directly from Haiti or the Dominican Republic' until 
                the President certifies to the Congress that Haiti and 
                the Dominican Republic have developed procedures to 
                prevent unlawful transshipment of the articles and the 
                use of counterfeit documents related to the importation 
                of the articles into the United States.
                    ``(B) Technical and other assistance.--The 
                Commissioner responsible for U.S. Customs and Border 
                Protection shall provide technical and other assistance 
                to Haiti and the Dominican Republic to develop 
                expeditiously the procedures described in subparagraph 
                (A).''.

SEC. 15406. PRESIDENTIAL PROCLAMATION AUTHORITY.

    The President may exercise the authority under section 604 of the 
Trade Act of 1974 to proclaim such modifications to the Harmonized 
Tariff Schedule of the United States as may be necessary to carry out 
this part and the amendments made by this part.

SEC. 15407. REGULATIONS AND PROCEDURES.

    The President shall issue such regulations as may be necessary to 
carry out the amendments made by sections 15402, 15403, and 15404. 
Regulations to carry out the amendments made by section 15402 shall be 
issued not later than September 30, 2008. The Secretary of Commerce 
shall issue such procedures as may be necessary to carry out the 
amendment made by section 15402(d) not later than September 30, 2008.

SEC. 15408. EXTENSION OF CBTPA.

    Section 213(b) of the Caribbean Basin Economic Recovery Act (19 
U.S.C. 2703(b)) is amended--
            (1) in paragraph (2)(A)--
                    (A) in clause (iii)--
                            (i) in subclause (II)(cc), by striking 
                        ``2008'' and inserting ``2010''; and
                            (ii) in subclause (IV)(dd), by striking 
                        ``2008'' and inserting ``2010''; and
                    (B) in clause (iv)(II), by striking ``6'' and 
                inserting ``8''; and
            (2) in paragraph (5)(D)--
                    (A) in clause (i), by striking ``2008'' and 
                inserting ``2010''; and
                    (B) in clause (ii), by striking ``108(b)(5)'' and 
                inserting ``section 108(b)(5)''.

SEC. 15409. SENSE OF CONGRESS ON INTERPRETATION OF TEXTILE AND APPAREL 
              PROVISIONS FOR HAITI.

    It is the sense of the Congress that the executive branch, 
particularly the Committee for the Implementation of Textile Agreements 
(CITA), U.S. Customs and Border Protection of the Department of 
Homeland Security, and the Department of Commerce, should interpret, 
implement, and enforce the provisions of section 213A(b) of the 
Caribbean Basin Economic Recovery Act, as amended by section 15402 of 
this Act, relating to preferential treatment of textile and apparel 
articles, broadly in order to expand trade by maximizing opportunities 
for imports of articles eligible for preferential treatment under such 
section 213A(b).

SEC. 15410. SENSE OF CONGRESS ON TRADE MISSION TO HAITI.

    It is the sense of the Congress that the Secretary of Commerce, in 
coordination with the United States Trade Representative, the Secretary 
of State, and the Commissioner responsible for U.S. Customs and Border 
Protection of the Department of Homeland Security, should lead a trade 
mission to Haiti, within 6 months after the date of the enactment of 
this Act, to promote trade between the United States and Haiti, to 
promote new economic opportunities afforded under the amendments made 
by section 15402 of this Act, and to help educate United States and 
Haitian business concerns about such opportunities.

SEC. 15411. SENSE OF CONGRESS ON VISA SYSTEMS.

    It is the sense of the Congress that Haiti, and other countries 
that receive preferences under trade preference programs of the United 
States that require effective visa systems to prevent transshipment, 
should ensure that monetary compensation for such visas is not required 
beyond the costs of processing the visa, including ensuring that such 
monetary compensation does not violate an applicable system to combat 
corruption and bribery.

SEC. 15412. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), this part 
and the amendments made by this part shall take effect on the date of 
the enactment of this Act.
    (b) Exception.--The amendments made by section 15402 shall take 
effect on October 1, 2008, and shall apply to articles entered, or 
withdrawn from warehouse for consumption, on or after that date.

                PART II--MISCELLANEOUS TRADE PROVISIONS

SEC. 15421. UNUSED MERCHANDISE DRAWBACK.

    (a) In General.--Section 313(j)(2) of the Tariff Act of 1930 (19 
U.S.C. 1313(j)(2)) is amended by adding at the end the following: ``For 
purposes of subparagraph (A) of this paragraph, wine of the same color 
having a price variation not to exceed 50 percent between the imported 
wine and the exported wine shall be deemed to be commercially 
interchangeable.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to claims filed for drawback under section 313(j)(2) 
of the Tariff Act of 1930 on or after the date of the enactment of this 
Act.

SEC. 15422. REQUIREMENTS RELATING TO DETERMINATION OF TRANSACTION VALUE 
              OF IMPORTED MERCHANDISE.

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

            Passed the House of Representatives May 22, 2008.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.
                                                       Calendar No. 753

110th CONGRESS

  2d Session

                               H. R. 6124

_______________________________________________________________________

                                 AN ACT

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

_______________________________________________________________________

                              May 22, 2008

            Received; read twice and placed on the calendar