II 110th CONGRESS 1st Session S. 541 IN THE SENATE OF THE UNITED STATES February 8, 2007 Mr. Feingold introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry A BILL To amend the Farm Security and Rural Investment Act of 2002 to promote local and regional support for sustainable bioenergy and biobased products, to support the future of farming, forestry, and land management, to develop and support local bioenergy, biobased products, and food systems, and for other purposes.
1.
Short title
This Act may be cited as the Rural Opportunities Act of 2007.
2.
Definitions
Section 9001 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8101) is amended— (1)by redesignating paragraphs (4) through (6), as paragraphs (5) through (7), respectively; (2)by inserting after paragraph (3) the following: (4)
Institution of higher education
The term institution of higher education has the meaning given the term in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001). ; and (3)by adding at the end the following: (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. .
3.
Local and regional sustainable bioenergy and biobased product use and production
(a)
Local and regional sustainable bioenergy and biobased product use and production
Title IX of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8101 et seq.) is amended by adding at the end the following:
9012.
Local and regional sustainable bioenergy and biobased product use and production
(a)
Extension, education, technical assistance, applied research, and development
(1)
In general
The Secretary shall make grants to States to carry out extension, education, applied research, and development activities at appropriate institutions of higher education, State agencies, or partnerships in the States to support local and regional sustainable bioenergy and biobased product use and production. (2)
Allocation of funds
(A)
In general
Subject to subparagraphs (B) and (C), funds made available under paragraph (4) shall be allocated among the States in accordance with the terms and conditions of paragraphs (1) through (3) of section 3(c) of the Hatch Act of 1887 (7 U.S.C. 361c(c)) and subparagraph (C). (B)
Unallocated funds
(i)
In general
The Secretary may use funds described in clause (ii) to provide bonus grants to States based on the need and merit of projects identified through annual reports submitted under paragraph (3)(E), as determined by the Secretary. (ii)
Relevant funds
The funds referenced in clause (i) are funds that— (I)would otherwise remain unallocated under this subsection for a fiscal year; (II)remain unused by a State as of the end of the grant term, as determined by the Secretary; or (III)are returned to the Secretary in accordance with paragraph (3)(C)(ii). (C)
Administration
The Secretary shall use not more than 5 percent of funds made available under paragraph (4)— (i)to maintain a clearinghouse for projects funded under this subsection; (ii)to fund liaisons to provide technical assistance within— (I)the Department of Agriculture; (II)the Department of Commerce; (III)the Department of Energy; (IV)the Environmental Protection Agency; and (V)other appropriate Federal agencies as determined by the Secretary. (iii)to support studies, competitions, and administration required by this section; and (iv)to support the collection and sharing of local innovations between the State lead agencies designated under this section. (3)
Conditions on receiving grants
(A)
Lead agency
(i)
In general
The Governor of a State shall designate or establish an agency, institution of higher education, or joint entity in the State as the lead agency for the distribution of grant funds. (ii)
Duties
A lead agency designated under clause (i) shall— (I)encourage collaboration between agencies, institutions of higher education, cooperative extension, and appropriate nonprofit organizations in the State; (II)support private- and nonprofit-public partnerships for purposes of the grant; (III)establish a local citizen and industry advisory board; (IV)improve the energy independence of the State; and (V)in consultation with the advisory board, develop a comprehensive statewide energy plan to increase energy independence described in clause (iii). (iii)
Comprehensive plan
The plan developed under clause (ii)(IV) shall— (I)support local and regional sustainable bioenergy and biobased product use and production; (II)provide flexibility for local needs; (III)support other renewable energy, energy efficiency and conservation activities, and coordination with other State and Federal energy initiatives (including the Clean Cities Program established under sections 405, 409, and 505 of the Energy Policy Act of 1992 (42 U.S.C. 13231, 13235, 13256)); (IV)support a diverse array of farm sizes, crops (including agroforestry), and production techniques, with a particular focus on small- and moderate-sized family farms; (V)have a goal of maximizing the public value of developing and using sustainable bioenergy and biobased products; (VI)include activities— (aa)to manage energy usage through energy efficiency and conservation; (bb)to develop new energy sources in a manner that is economically viable, ecologically sound, and socially responsible; and (cc)to grow or produce biomass in a sustainable manner that has net environmental benefits and considers such factors as relative water quality, soil quality, air quality, wildlife impacts, net energy balance, crop diversity, and provision of adequate income for the agricultural producers; and (VII)consider providing grant preferences to local and farmer-owned projects in order to retain and maximize local and regional economic benefits. (B)
Use of funds
(i)
In general
Subject to clause (ii), a grant received under this subsection may be used to pay the Federal share of carrying out that support the establishment, growth, and use of local bioenergy and biobased products, including— (I)extension; (II)curriculum development; (III)education and training; (IV)technical assistance; (V)applied research; (VI)grants to support local production and use of bioenergy and biobased products; (VII)energy conservation or support for other renewable fuels, if identified as part of the comprehensive statewide energy plan developed under subparagraph (A)(ii)(IV); (VIII)support of bioenergy and biobased product cooperatives through education, training, technical assistance, or grants; and (IX)any other activity identified or approved by the Secretary as meeting those goals. (ii)
Allocation of grant resources
(I)
In general
Each comprehensive statewide energy plan shall include a balanced allocation of grant resources to ensure support for each of research, education, extension, and development. (II)
Secretarial review
If after review of a comprehensive statewide energy plan received under subparagraph (D)(i), the Secretary determines that the plan or allocation of resources is inadequate or inappropriate, the Secretary shall request clarification or revisions. (C)
Matching funds
(i)
In general
A recipient of funds for an activity under this subsection shall contribute an amount of non-Federal funds (including non-Federal funds from nonprofit organizations, local governments, and public-private partnerships) in the form of cash or in-kind contributions to carry out the activity that is equal to the amount of Federal funds received for the activity. (ii)
Return of funds
A recipient of funds for an activity under this subsection that fails to comply with the requirement to provide full matching funds for a fiscal year under clause (i) shall return to the Secretary an amount equal to the difference between— (I)the amount provided to the recipient under this subsection; and (II)the amount of matching funds actually provided by the recipient. (D)
Annual report
(i)
In general
Not later than February 1 of each year, each State receiving a grant under this subsection shall submit to the Secretary a report that— (I)describes and evaluates the use of grant funds during the preceding fiscal year; and (II)includes the comprehensive statewide energy plan, and any revisions to the plan, developed under subparagraph (A)(ii)(IV). (ii)
Publication
The Secretary shall make available to the public all reports received under clause (i). (4)
Authorization of appropriations
There is authorized to be appropriated to carry out this subsection $30,000,000 for each of fiscal years 2008 through 2013, to remain available until expended. (b)
Study
(1)
In general
The Comptroller General of the United States shall carry out a study that assesses— (A)changes to law (including regulations) and policies to provide or increase incentives for the potential production of bioenergy (at levels greater than in existence as of the date of enactment of this section) to maintain local ownership, control, economic development, and the value-added nature of bioenergy and biobased product production; (B)potential limits to prevent excessive payments, including variable support (such as reducing subsidies based on the price of bioenergy or a comparable conventional energy source); and (C)the use of existing and proposed incentives for particular stages in the bioenergy system (including production, blending, or retail), including an evaluation of which incentives would be most efficient and beneficial for local and regional communities and consumers. (2)
Report
Not later than 2 years after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress the report under paragraph (1). (c)
Basic research on next generation technology
(1)
In general
For each of fiscal years 2008 through 2013, the Secretary, acting through the National Research Initiative, shall use $5,400,000 of funds of the Commodity Credit Corporation, to remain available until expended, to carry out additional research on biobased products and bioenergy production with an emphasis on developing and improving the next generation of products and production methods (such as cellulosic ethanol). (2)
Maintenance of funding
The funding provided under this subsection shall supplement (and not supplant) other Federal funding for the National Research Initiative in those research areas. (d)
Supplemental rural cooperative development grants
(1)
In general
For each of fiscal years 2008 through 2013, the Secretary, acting through the Under Secretary for Rural Development, may use up to $1,000,000 to supplement existing grants under the rural cooperative development grant program established under section 310B(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) (referred to in this subsection as the program). (2)
Requirement
The Secretary may award supplemental grants under this subsection to program grant recipients the applications or ongoing activities of which support, establish, or assist the establishment of, renewable fuels or biobased product-based cooperatives. (3)
Amount
The amount of a supplemental grant under this subsection shall not exceed 20 percent of the amount of the base program grant. (4)
Authorization of appropriations
There is authorized to be appropriated to carry out this subsection $1,000,000 for each of fiscal years 2008 through 2013. (5)
Maintenance of funding
The funding provided under this subsection shall supplement (and not supplant) other Federal funding for the program.
. (b)
Regional bioenergy and biobased products competitive research, education, and extension programs
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:
412.
Regional bioenergy and biobased products competitive research, education, and extension programs
(a)
In general
The Secretary shall establish regional funds in accordance with this section. (b)
Unallocated funds
(1)
In general
The Secretary may use funds described in paragraph (2) to provide bonus grants to regional centers based on need and merit, as determined by the Secretary. (2)
Relevant funds
The funds referenced in paragraph (1) are funds that— (A)would otherwise remain unallocated under this section for a fiscal year; or (B)remain unused by a regional center as of the end of the grant term, as determined by the Secretary; or (C)are returned to the Secretary in accordance with paragraph (3)(B). (3)
Matching funds
(A)
In general
A recipient of funds for an activity under this section shall contribute in the form of cash or in-kind contributions an amount of non-Federal funds to carry out the activity that is equal to the amount of Federal funds received under this section for the activity. (B)
Return of funds
A recipient of funds for an activity under this section that fails to comply with the requirement to provide full matching funds for a fiscal year under subparagraph (A) shall return to the Secretary an amount equal to the difference between— (i)the amount provided to the recipient under this section; and (ii)the amount of matching funds actually provided by the recipient. (C)
Waiver
The Secretary may waive the matching funds requirement described in subparagraph (A) with respect to a project if the Secretary determines that— (i)the results of the project, while of particular benefit to a specific bioenergy or biobased product research question, are also likely to be generally applicable; or (ii)(I)the project involves a minor crop or production method and deals with scientifically important research; and (II)the grant recipient is unable to satisfy the matching funds requirement. (c)
Identification of regions
(1)
In general
Regions under this section shall correspond with the regions of the Cooperative State Research, Education, and Extension Service of the Department of Agriculture. (2)
Subregions
Each regional board established under subsection (f) may establish up to 3 subregions based on common characteristics, including— (A)bioenergy production methods; (B)research questions; (C)the benefits in efficiency and coordination of identifying the same regions as are used by other Federal programs, such as regions used for sun grant centers under section 9011(d) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8109(d)); and (D)other factors important in fulfilling the goal of increasing local and regional sustainable bioenergy and biobased product use and production in the United States. (d)
Regional funds
(1)
In general
The Secretary shall establish for each region identified under subsection (c) a regional fund. (2)
Allocation of funds
Funds made available under subsection (g) shall be allocated among the regional funds in accordance with the proportional share of funds received under section 9012(a)(1) of the Farm Security and Rural Investment Act of 2002 by the States that constitute the appropriate region. (e)
Competition
(1)
In general
Not less often than once every 5 years, in conjunction with the appropriate regional board, the Secretary shall competitively award— (A)the funds in each regional fund to a regional center to carry out multi-State applied research, extension, education, and development; and (B)the designation of the regional center to an agency, institution of higher education, nonprofit organization, or joint entity in the region. (2)
Shared centers
An agency, institution of higher education, nonprofit organization, or joint entity may host more than 1 regional center if the appropriate regional board determines that shared administrative and other expenses benefits program efficiency. (f)
Regional board
(1)
In general
The Secretary shall establish a regional board for each region. (2)
Membership
(A)
In general
The membership of each regional board shall include— (i)representatives of— (I)the Agricultural Research Service; (II)the Cooperative State Research, Education, and Extension Service; (III)the Natural Resources Conservation Service; (IV)nonprofit organizations with demonstrable expertise in sustainable agriculture and sustainable bioenergy and biobased product use and production; (V)cooperatives engaged in bioenergy or biobased products production; (VI)agricultural producers involved in production of agricultural commodities for bioenergy and biobased products; (VII)landowners or businesses involved in forestry; and (VIII)agribusinesses; and (ii)1 member from each State designated by the Governor of the State and approved by the Secretary who represents— (I)State cooperative extension services; (II)State agricultural experiment stations; and (III)State departments engaged in bioenergy and biobased products programs. (B)
Rotation
The members of the board described in clause (ii) shall regularly rotate among representatives of the groups described in subclauses (I), (II), and (III) in order that each regional board has equitable representation of each of those groups. (3)
Relation to existing or future regional consortiums
If a regional consortium is developed that, as determined by the Secretary, fulfills the goals of this section and reflects, to the maximum extent practicable, the membership diversity described in paragraph (2), the regional consortium or a subpart of the regional consortium may act as the regional board for the purposes of this section. (4)
Responsibilities
Each regional board shall— (A)promote the programs established under this section at the regional level; (B)establish goals and criteria for the selection of projects authorized under this section within the applicable region; (C)appoint a technical committee to evaluate proposals for projects to be considered under this section by the regional board; (D)review and act on the recommendations of the technical committee, and coordinate the activities of the regional board with the regional host institution; and (E)prepare and make available an annual report covering projects funded under this section and including an evaluation of the project activity. (5)
Preferences
In determining regional priorities and making funding decisions, the regional board shall give preference to— (A)collaborative proposals; (B)research that adapts existing technology to local conditions; (C)proposals that include more than 1 of the components of education, extension, and research and development; (D)proposals that examine multiple factors (including economic, social, and environmental factors) at a landscape or watershed scale to maximize the public value; and (E)proposals that develop and evaluate more sustainable alternatives to traditional monocultures, including perennial continuous living cover systems and incorporating bioenergy or biobased product production on conventional farms in sensitive areas, such as perennial biomass production on watercourses. (6)
Other duties
The regional board shall coordinate with other Federal programs (including the research, extension, and educational programs described in section 9011 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8109)) to support joint initiatives, encourage complimentary priorities, and prevent duplication of effort. (g)
Authorization of appropriations
There is authorized to be appropriated to carry out this subsection $20,000,000 for each of fiscal years 2008 through 2013, to remain available until expended.
. (c)
Agroforestry conversion and cellulosic production pilot programs
(1)
Agroforestry conversion
(A)
In general
The Secretary of Agriculture (referred to in this paragraph as the Secretary) shall carry out an agroforestry conversion pilot program under which the Secretary shall provide technical assistance, cost share assistance, grants, or loans to landowners during the establishment phase of a woody crop. (B)
Selection
In providing assistance under this paragraph, the Secretary shall— (i)use a competitive selection process; and (ii)consider diversity of— (I)region; (II)production method; (III)type of woody crop; (IV)method of requested support. (2)
Cellulosic production pilot program
(A)
In general
The Secretary shall carry a cellulosic production pilot program under which the Secretary shall provide loans, loan guarantees, or grants, or any combination thereof, to cooperatives, businesses, or joint ventures to produce cellulosic ethanol from woody biomass on a commercial scale. (B)
Multiple pilot programs
If there is sufficient funding for the Secretary to carry out more than 1 pilot program under this paragraph, the Secretary shall ensure, to the maximum extent practicable, that the pilot programs are geographically representative of the major forestry regions of the United States. (3)
Report
Not later than October 1, 2013, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that— (A)describes the effectiveness of the pilot programs under this subsection; and (B)recommends whether or not the pilot programs should be continued and at what funding level. (4)
Authorization of appropriations
There is authorized to be appropriated to carry out this subsection $10,000,000 for each of fiscal years 2008 through 2013. (d)
Reauthorizations
(1)
Renewable energy systems and energy efficiency improvements
Section 9006(f) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8106(f)) is amended by striking section $23,000,000 and all that follows and inserting “section— (1)$23,000,000 for fiscal year 2006; (2)$3,000,000 for fiscal year 2007; and (3)$40,000,000 for each of fiscal years 2008 through 2013. . (2)
Grants for certain value-added agricultural products
Section 231(b)(4) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106–224) is amended— (A)by striking Not later and inserting the following: (A)
Fiscal years 2003 through 2007
Not later ; and. (B)by adding at the end the following: (B)
Fiscal years 2008 through 2013
(i)
In general
Not later than October 1, 2007, and each October 1 thereafter through October 1, 2012, of the funds of the Commodity Credit Corporation, the Secretary shall made available to carry out this subsection, $60,000,000, to remain available until expended. (ii)
Use of funds
The Secretary shall ensure that not less than 10 percent of the competitive grants awarded during each of fiscal years 2008 through 2013 are awarded to producers of value-added agricultural products that use or produce biobased products or bioenergy. .
4.
Future of farming, ranching, and land management
(a)
In general
Subtitle D of the Consolidated Farm and Rural Development Act is amended by inserting after section 344 (7 U.S.C. 1991) the following:
345.
Future of farming, ranching, and land management
(a)
Grants To support the future of farming, ranching, and land management
(1)
In general
The Secretary shall make grants to States to support the development of the next generation of farmers, ranchers, and other land managers. (2)
Allocation of funds
(A)
In general
Subject to subparagraphs (B) and (C), funds made available under paragraph (4) shall be allocated among the States in accordance with the terms and conditions of paragraphs (1) through (3) of section 3(c) of the Hatch Act of 1887 (7 U.S.C. 361c(c)) and subparagraph (C). (B)
Unallocated funds
(i)
In general
The Secretary may use funds described in clause (ii) to provide bonus grants to States based on the need and merit of projects identified through annual reports submitted under paragraph (3)(E), as determined by the Secretary. (ii)
Relevant funds
The funds referenced in clause (i) are funds that— (I)would otherwise remain unallocated under this subsection for a fiscal year; or (II)remain unused by a State as of the end of the grant term, as determined by the Secretary; or (III)are returned to the Secretary in accordance with paragraph (3)(D)(ii). (C)
Administration
The Secretary shall use not more than 5 percent of funds made available under paragraph (4)— (i)to maintain a clearinghouse for projects funded under this section; (ii)to fund liaisons within each agency of the Department of Agriculture; and (iii)to support studies, competitions, and administration required by this section. (3)
Conditions on receiving grants
(A)
In general
The Governor of a State shall designate or establish an agency, public institution of higher education (as that term is defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)), or joint entity in the State as the lead agency for the distribution of grant funds. (B)
Duties
A lead agency designated under subparagraph (A) shall— (i)encourage collaboration between agencies, cooperative extension, local nonprofit organizations, agricultural organizations, and institutions of higher education in the State; (ii)support private- and nonprofit-public partnerships for purposes of the grant; (iii)establish a local citizen and industry advisory board; (iv)in consultation with the advisory board, develop a statewide plan to increase opportunities for, and reduce barriers to, beginning farmers and ranchers and, in accordance with subparagraph (C), other rural professions; (v)support the development of local community-based support and mentoring networks; (vi)to the maximum extent practicable, enable the transfer of family farms to children or other relatives of owners in order to allow family farms to be kept whole in cases in which the division of the farm would result in a less viable agricultural operation; and (vii)support small-scale models for farms or ranches for beginning farmers and ranchers and other rural professions, including models based on— (I)community-supported agriculture; (II)organic agriculture; (III)farmers markets; (IV)speciality agricultural products; (V)sustainable production; (VI)grazing; (VII)agrotourism; and (VIII)agroforestry. (C)
Other rural professions
A State that identifies other important rural professions in the State (including professions involving forestry, conservation, land management, tourism, or a combination of those professions) may include those professions in the statewide plan under subparagraph (B)(iv). (D)
Matching funds
(i)
In general
A recipient of funds for an activity under this subsection shall contribute in the form of cash or in-kind contributions an amount of non-Federal funds to carry out the activity that is equal to the amount of Federal funds received for the activity. (ii)
Return of funds
A recipient of funds for an activity under this subsection that fails to comply with the requirement to provide full matching funds for a fiscal year under clause (i) shall return to the Secretary an amount equal to the difference between— (I)the amount provided to the recipient under this subsection; and (II)the amount of matching funds actually provided by the recipient. (E)
Use of funds
(i)
In general
A grant received under this subsection may be used to pay the Federal share of carrying out the programs that support and develop the next generation of farmers, ranchers, and other rural professionals, including— (I)extension; (II)education, including targeted scholarships and loan forgiveness, for traditional degree and certificate courses and continuing education and short courses; (III)technical assistance, including support for development of cooperatives; (IV)grants to support transitional ownership, mentorships, apprenticeships, and peer-support networks; (V)support of matched-savings programs through individual development accounts that can be used for capitol expenses, land acquisition, or training for beginning farmers, ranchers, and other rural professionals; (VI)support of farmer land contract programs to provide payment guarantees to encourage retiring landowners to sell to beginning farmers, ranchers, and rural professionals; and (VII)any other activity identified or approved by the Secretary as meeting those goals; (ii)
Preference
In allocating grants and other direct assistance under this subsection, a lead agency shall give priority to limited resource and socially-disadvantaged individuals. (F)
Annual report
(i)
In general
Not later than February 1 of each year, each State receiving a grant under this subsection shall submit to the Secretary a report that describes and evaluates the use of grant funds during the preceding fiscal year. (ii)
Publication
The Secretary shall make available to the public all reports received under clause (i). (4)
Authorization of appropriations
There is authorized to be appropriated to carry out this subsection $30,000,000 for each of fiscal years 2008 through 2013, to remain available until expended. (b)
Advisory Committee on Beginning Farmers and Ranchers
To the maximum extent practicable, the Secretary shall use funds otherwise available to the Secretary— (1)to support the work of the Advisory Committee on Beginning Farmers and Ranchers established under section 5(b) of the Agricultural Credit Improvement Act of 1992 (7 U.S.C. 1929 note; Public Law 102–554) (referred to in this subsection as the Committee)— (2)to fund more frequent meetings of the Committee (including meetings at least twice per year); and (3)to increase the outreach activities of the Committee, including increased public field hearings, if determined to be necessary by the Committee. (c)
Study and pilot program
(1)
Beginning farmer and rancher loan program
(A)
In general
For each of fiscal years 2008 through 2013, the Secretary shall use funds made available under subparagraph (D)— (i)to study the provision under this Act of direct farm ownership and guaranteed loans to beginning farmers and ranchers; (ii)to carry out a pilot program to use additional resources to reduce the backlog of loan applications from beginning farmers and ranchers; (iii)to carry out a pilot program under which grants, rather than loans, are provided to support capitol investments or farm purchases at the same amount as the subsidy would be over the term of a comparable loan; and (iv)to carry out a pilot program under which direct and guaranteed loans are provided under this Act to beginning farmers and ranchers with no interest or payments due, and no accrual of interest, during a period of up to the first 36 months of the loans. (B)
Reports
(i)
Initial report
Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to Congress a report that— (I)describes the results of the study under subparagraph (A)(i); and (II)recommends changes to improve the efficiency of the provision under this Act of direct and guaranteed loans to beginning farmers and ranchers. (ii)
Additional reports
Not later than 4 years after the date of enactment of this Act, and thereafter as appropriate, the Secretary shall submit to Congress a report that describes the effectiveness of the pilot programs described in subparagraph (A)(ii). (C)
Additional pilot programs
After submission of the study under subparagraph (B)(i), the Secretary may use funds made available to carry out this subsection— (i)to continue the pilot programs described in subparagraph (A)(ii); or (ii)to carry out other pilot programs based on the conclusions and recommendations of the study. (D)
Authorization of appropriations
There is authorized to be appropriated to carry out this subsection $10,000,000 for each of fiscal years 2008 through 2013. (d)
GAO study and report
(1)
Study
The Comptroller General of the United States shall carry out a study of possible tax incentives, contract guarantees, and other measures to support the transfer of land from retiring farmers and ranchers to beginning farmers and ranchers. (2)
Report
Not later than 2 years after the date of enactment of this section, the Comptroller General of the United States shall submit to Congress a report that evaluates, and makes recommendations concerning, the effectiveness of measures studied under paragraph (1).
. (b)
Beginning farmer and rancher development program
Section 7405 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3319f) is amended— (1)in subsection (c)(5)— (A)in subparagraph (B), by striking and at the end; (B)in subparagraph (C), by striking the period at the end and inserting ; and; and (C)by adding at the end the following: (D)refugee or immigrant farmers or ranchers ; and (2)by striking subsection (h) and inserting the following: (h)
Funding
(1)
Fees and contributions
(A)
In general
The Secretary may— (i)charge a fee to cover all or part of the costs of curriculum development and the delivery of programs or workshops provided by— (I)a beginning farmer and rancher education team established under subsection (d); or (II)the online clearinghouse established under subsection (e); and (ii)accept contributions from cooperating entities under a cooperative agreement entered into under subsection (d)(4)(B) to cover all or part of the costs for the delivery of programs or workshops by the beginning farmer and rancher education teams. (B)
Availability
Fees and contributions received by the Secretary under subparagraph (A) shall— (i)be deposited in the account that incurred the costs to carry out this section; (ii)be available to the Secretary to carry out the purposes of the account, without further appropriation; (iii)remain available until expended; and (iv)be in addition to any funds made available under paragraph (2). (2)
Funding
For each of fiscal years 2008 through 2013, the Secretary shall use $20,000,000 of funds of the Commodity Credit Corporation to carry out this section, to remain available for 2 fiscal years after the date on which the funds are first made available. . (c)
Improving and targeting farm support and conservation programs for beginning farmers, ranchers, and rural professionals
(1)
In general
The Secretary of Agriculture (referred to in this section as the Secretary) shall carry out a study to identify and propose remedies to barriers to small, beginning, socially disadvantaged, and limited resource producers in conservation and farm support programs, including— (A)the environmental quality incentives program established under chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.); (B)the conservation security program established under subchapter A of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.); (C)the farmland protection program established under subchapter B of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838h et seq.) (commonly known as the Farm and Ranch Lands Protection Program); (D)the wetlands reserve program established under subchapter C of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3837 et seq.); (E)risk management tools, such as insurance; (F)commodity support programs; (G)food purchases by the Agricultural Marketing Service; (H)the provision of value-added agricultural product market development grants to producers under section 231(b) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106–224); and (I)other programs identified by the Advisory Committee on Beginning Farmers and Ranchers established under section 5(b) of the Agricultural Credit Improvement Act of 1992 (7 U.S.C. 1929 note; Public Law 102–554). (2)
Report
Not later than 1 year after the date of enactment of this Act, and every 2 years thereafter, or otherwise on the recommendation of the Advisory Committee on Beginning Farmers and Ranchers established under section 5(b) of the Agricultural Credit Improvement Act of 1992 (7 U.S.C. 1929 note; Public Law 102–554), the Secretary shall submit to Congress a report that— (A)describes the results of the study under paragraph (1); (B)summarizes the participation rates for small, beginning, socially disadvantaged, and limited resource producers in the programs studied; (C)recommends changes to make the programs studied more accessible and effective for limited resource and beginning farmers and ranchers; and (D)for each report after the initial report, describes the status of changes recommended by previous reports. (3)
Sense of the Senate regarding conservation security program
It is the sense of the Senate that— (A)the conservation security program established under subchapter A of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.) was intended to be an entitlement available to all agricultural producers, rather than available on a piecemeal basis; (B)sufficient mandatory funds should be provided to the conservation security program to fulfill the promise of supporting conservation on working land; and (C)the next reauthorization of the Farm Bill should— (i)contain sufficient mandatory funding for the conservation security program; and (ii)continue the 15 percent cost-share bonus for beginning farmers and ranchers for the conservation security program and the environmental quality incentives program established under chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.). (d)
Sustainable agriculture initiatives
(1)
Appropriate Technology Transfer for Rural Areas
There is authorized to be appropriated to the Secretary of Agriculture to carry out appropriate technology transfer for rural areas program under the same terms and conditions as funds provided under the heading rural cooperative development grants under the heading Rural Business-Cooperative Service in title III of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2006 (Public Law 109–97; 119 Stat. 2141) $5,000,000 for each of fiscal years 2008 through 2013, to remain available until expended. (2)
Sustainable Agriculture Research and Education Program
(A)
Best utilization of biological applications
(i)
In general
Section 1624 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5814) is amended to read as follows:
1624.
Funding
(a)
In general
There is authorized to be appropriated to carry out sections 1621 and 1622 $75,000,000 for each of fiscal years 2008 through 2013, to remain available until expended. (b)
Federal-State matching grant program
For each of fiscal years 2008 through 2013, the Secretary shall use $20,000,000 of funds of the Commodity Credit Corporation to carry out section 1623, to remain available until expended.
. (ii)
Multi-State regions
Section 1623 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5813) is amended— (I)in subsections (a), (b), (c)(1), and (d)(1), by inserting or multi-State regions after States each place it appears; (II)in subsection (a), by inserting or multi-State after enhancement of State; (III)in subsection (b)(8), by inserting or multi-State region after State; (IV)in paragraphs (1), (2), and (3) of subsection (c) and subsection (d)(1), by inserting or multi-State after State each place it appears; and (V)in subsection (d)(2)— (aa)in the paragraph heading by inserting or multi-State after State; (bb)by inserting or multi-State region after a State; (cc)by inserting or multi-State after from State; (dd)by inserting or multi-State after other State; and (ee)by inserting or multi-State region after the State. (B)
National training program
Section 1629 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5832) is amended by striking subsection (i) and inserting the following: (i)
Funding
There is authorized to be appropriated to carry out this section $25,000,000 for each of fiscal years 2008 through 2013, to remain available until expended. . (e)
Organic programs
(1)
Organic agriculture research and extension initiative
Section 1672B of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925b) is amended by striking subsection (e) and inserting the following: (e)
Funding
For each of fiscal years 2008 through 2013, the Secretary shall use $15,000,000 of funds of the Commodity Credit Corporation to carry out this section, to remain available until expended. . (2)
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— (A)in subsection (a), by striking $5,000,000 for fiscal year 2002 and inserting $25,000,000 for fiscal year 2008; (B)in subsection (b)(2), by striking $500 and inserting $750; and (C)by adding at the end the following: (c)
Recordkeeping requirements
(1)
In general
The Secretary, acting through the Agricultural Marketing Service, shall— (A)keep accurate, up-to-date records of requests and disbursements from the program under this section; and (B)require accurate and consistent recordkeeping from each State or other entity receiving program payments. (2)
Federal requirements
Not later than 30 days after the closing date for States to request funding under the program, the Secretary shall— (A)finalize records that describe— (i)each State that has requested funding; and (ii)the amount of each funding request; and (B)distribute the funding to the States. (3)
State requirements
Annual funding requests from each State shall include data from the program during the previous year, including— (A)(i)a description of which entities requested reimbursement; (ii)the amount of each reimbursement; and (iii)any discrepancies between requests and the fulfillment of the requests; (B)data to support increases in requests expected in the coming year, including information from certifiers or other data showing growth projections; and (C)an explanation if an annual request is made for an amount less than the amount requested the previous year. (d)
Reporting
Not later than March of each year, the Secretary shall provide an annual report to Congress that describes, for each State, the expenditures under the program under this section, including the number of producers and handlers served by the program in the previous fiscal year. . (3)
National organic conversion and stewardship incentive program
The Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) is amended— (A)by redesignating sections 2122 and 2123 (7 U.S.C. 6521, 6522) as sections 2124 and 2125, respectively; and (B)by inserting after section 2121 (7 U.S.C. 6520) the following:
2122.
National organic conversion and stewardship incentive program
(a)
Definition of Secretary
In this section, the term Secretary means the Secretary (acting through the Natural Resources Conservation Service), in consultation with the National Organic Technical Committee established under subsection (h). (b)
Program
Not later than 180 days after the date of the enactment of the Rural Opportunities Act of 2007, the Secretary shall establish a national organic agriculture conversion and stewardship incentives program under which the Secretary shall provide cost-share and incentive payments and technical assistance to eligible producers who enter into contracts with the Secretary to assist the producers in— (1)developing and implementing practices to convert all or part of nonorganic farms to certified organic farms; and (2)adopting advanced organic farming conservation systems. (c)
Eligible producers
(1)
In general
To be eligible for a payment or technical assistance under this section, a producer shall enter into a contract with the Secretary under which the producer shall agree to develop and implement an organic system plan that— (A)describes the conservation and environmental purposes to be achieved through conservation practices and activities under the contract; (B)demonstrates an existing market or reasonable expectation of a future market for an agricultural product that is organically produced; and (C)meets the requirements of this title. (2)
Compliance
To be eligible for a payment or technical assistance under this section, a producer shall comply with organic certification requirements as verified by a certifying agent (as defined in section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C. 6502). (3)
Conversion payments for certified organic producers
A producer who owns or operates a farm that is partially a certified organic farm and who otherwise meets the requirements of this section shall be eligible for payments under this section to convert other parts of the farm to a certified organic farm. (4)
Appeals
An applicant that seeks assistance under this section shall have the right to appeal an adverse decision of the Secretary with respect to an application for the assistance, in accordance with subtitle H of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6991 et seq.). (d)
Eligible practices and activities
The Secretary shall provide payments and technical assistance to eligible producers under this section for— (1)carrying out— (A)organic practices and activities to convert all or part of a nonorganic farm to a certified organic farm, in accordance with an organic system plan that meets the requirements of this title; (B)advanced organic practices that are consistent with the organic system plan; (C)organic animal welfare measures, so long as the measures are— (i)necessary to implement an organic practice standard; and (ii)consistent with an approved plan to transition to certified organic production; and (D)other measures, as determined by the Secretary; and (2)developing an organic system plan that meets the requirements of this title. (e)
Payment limitations
(1)
In general
Except as provided in paragraphs (2) and (3), an individual or entity may not receive, directly or indirectly, cost-share or incentive payments under this section— (A)that, in the aggregate, exceed $10,000 per year; or (B)for a period of more than 4 years. (2)
Specialty crops
In the case of an individual or entity who annually produces 3 or more types of 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)), the individual or entity may not receive, directly or indirectly, cost-share or incentive payments under this section— (A)that, in the aggregate, exceed $20,000 per year; or (B)for a period of more than 4 years. (3)
Dairy
In the case of an individual or entity whose principal farming enterprise is a dairy operation, the individual or entity may not receive, directly or indirectly, cost-share or incentive payments under this section— (A)that, in the aggregate, exceed $20,000 per year; or (B)for a period of more than 4 years. (f)
Technical and educational assistance
(1)
In general
The Secretary shall use not less than 50 percent of the funds that are made available under subsection (k) for each fiscal year to— (A)provide technical assistance to eligible producers to carry out eligible practices and activities described in subsection (d); and (B)enter into cooperative agreements with qualified nonprofit and nongovernmental organizations and consultants to carry out educational programs that promote the purposes of this section, as determined by the Secretary. (2)
Cooperative agreements
Of the amount of funds for a fiscal year described in paragraph (1), the Secretary shall use not less than 50 percent of the funds to carry out paragraph (1)(B). (g)
Suspension authority
(1)
Assessments
Not later than October 1 of each fiscal year, the Secretary shall publish in the Federal Register and otherwise make available an assessment for each organic product that analyzes— (A)the domestic production and consumption of the organic product; (B)the import and export organic market demand and growth potential for the organic product; and (C)the estimated number and total amount of new payments under this section for the fiscal year to be made to producers of the organic product. (2)
Suspension of new contracts
The Secretary shall not enter into contracts with new producers of an organic product under this section if the Secretary determines that entering into the contracts would— (A)produce an increased quantity of the organic product that the Secretary finds is reasonably anticipated to adversely affect the economic viability of producers who own or operate certified organic farms under this title; or (B)create an unreasonable geographic disparity in the distribution of payments under this section. (h)
National organic technical committee
(1)
Establishment
The Secretary shall establish a National Organic Technical Committee to— (A)advise and assist the Secretary in carrying out the program established under this section; and (B)improve the interface between owners and operators of certified organic farms and other conservation programs and activities administered by the Natural Resources Conservation Service, including development of criteria for the approval of qualified organic technical advisors under this title. (2)
Membership
The National Organic Technical Committee shall consist of 9 members appointed by the Secretary, including— (A)3 owners or operators of certified organic farms; (B)2 certifying agents; (C)2 inspectors of organic products; (D)1 representative of an environmental organization that is knowledgeable concerning organic agriculture; and (E)1 scientist with expertise in conservation planning. (i)
Annual reports
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 operation of the program established under this section, including— (1)a State-by-State analysis of expenditures on assistance under this section, including the number of producers served by the program and the practices and activities implemented; (2)an assessment of the impact of the program on organic food production; and (3)any recommended modifications to the program. (j)
National program review
(1)
In general
Not later than 4 years after the commencement of the program established under this section, the Secretary shall— (A)conduct a national program review (including public hearings) of the program established under this section; and (B)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 review (including any appropriate recommendations). (2)
Content
In conducting the review, the Secretary shall evaluate and make recommendations to— (A)resolve any program deficiencies; (B)redress any underserved States, agricultural products, and regions; and (C)ensure that the program is contributing positively to the profitability of small- and intermediate-size producers and existing owners and operators of certified organic farms. (k)
Funding
Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $50,000,000 for each of the fiscal years 2008 through 2013, to remain available until expended.
. (4)
Annual report
The Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) is amended by inserting after section 2122 (as added by paragraph (3)) the following:
2123.
Annual report
Each year, the Secretary shall submit to Congress, and make available to the public, a report that— (1)describes the enforcement activities carried out by the Secretary under this Act to ensure the integrity of organic labels; and (2)includes specific details on the number and investigative results of retail surveillance and oversight by certifying agents under this Act.
. (5)
Report
Not later than 120 days after the date of enactment of this Act, the Secretary shall submit to Congress a report describing the progress in carrying out the national organic program established under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.) in implementing the recommendations contained in— (A)the audit conducted in 2004 by the American National Standards Institute; and (B)the audit conducted in 2005 by the Office of the Inspector General of the Department of Agriculture. (f)
Socially disadvantaged farmers and ranchers outreach and technical assistance program
Section 2501 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279) is amended— (1)in subsection (a)(4), by adding at the end the following: (C)
Funding
For each of fiscal years 2008 through 2013, the Secretary shall use $25,000,000 of funds of the Commodity Credit Corporation to carry out this subsection, to remain available until expended. ; and (2)in subsection (c)(1)(A), by inserting , including beginning farmers and ranchers in those groups, after groups.
5.
Encouraging local markets for food, bioenergy, and bioproducts
(a)
Geographic procurement preference for Department of Defense and Department of Agriculture
(1)
Findings
Congress finds that— (A)local produce, as compared to transported produce— (i)is often harvested closer to full ripeness and can have higher nutritional quality; (ii)can have improved ripeness, taste, or selection, which can increase rates of consumption of fruits and vegetables; and (iii)is more efficient to store, distribute, and package; (B)use of local produce— (i)reduces dependence upon foreign oil by reducing fuel consumption rates associated with the production or transportation of fruits and vegetables; (ii)can help to improve the ability of those using the procurement system to provide education on nutrition, farming, sustainability, energy efficiency, and the importance of local purchases to the local economy; (iii)helps to maintain a robust logistics network for agricultural product procurement; and (iv)promotes farm, business, and economic development by accessing local markets; and (C)section 9(j) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(j)) directs the Secretary of Agriculture to encourage institutions participating in the school lunch program established under that Act and the school breakfast program established by section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) to purchase, in addition to other food purchases, locally produced foods, to the maximum extent practicable and appropriate. (2)
Geographic procurement preference
(A)
In general
Notwithstanding any other provision of law, the Department of Defense, the Department of Agriculture, schools, local educational agencies, and other entities may use a geographic preference to purchase locally produced fruits and vegetables for— (i)in the case of programs carried out by the Department of Defense— (I)the Defense Supply Center Philadelphia; (II)the Department of Defense Farm to School Program; (III)the Department of Defense Fresh Fruit and Vegetable Program; (IV)the service academies; (V)Department of Defense domestic dependant schools; (VI)other Department of Defense schools under chapter 108 of title 10, United States Code; (VII)commissary and exchange stores; and (VIII)morale, welfare, and recreation (MWR) facilities operated by the Department of Defense; and (ii)in the case of programs carried out by the Department of Agriculture, schools, local educational agencies, and other entities— (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 the Richard B. Russell National School Lunch Act (42 U.S.C. 1761); and (IV)the child and adult care food program established under section 17 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766). (B)
Additional authorizations
A local food service director or other entity may include a geographic preference described in subparagraph (A) in bid specifications and may select a bid involving locally produced fruits and vegetables, even if that bid is not the lowest bid. (3)
Scope of authority
The authority provided in paragraph (2) applies to the purchase of fruits and vegetables for both Department of Defense and non-Department of Defense uses. (4)
Reporting
A school, local educational agency, or other entity participating in 1 or more of the programs described in paragraph (2)(B) shall report to the Secretary of Agriculture if the school, local educational agency, or other entity pays more than 10 percent more than the lowest bid to purchase locally produced fruits and vegetables in accordance with this subsection. (5)
Review
The Secretary of Defense and the Secretary of Agriculture shall periodically review the program under this subsection to prevent fraud or abuse. (b)
Access to local foods and school gardens
Section 18(i) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769(i)) is amended by striking paragraph (2) and inserting the following: (2)
Funding
For each of fiscal years 2008 through 2013, the Secretary shall use $10,000,000 of funds of the Commodity Credit Corporation to carry out this subsection, to remain available until expended. . (c)
Senior farmers' market nutrition program
Section 4402(a) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3007(a)) is amended— (1)by striking The Secretary and inserting the following: (1)
In general
The Secretary; ; and (2)by adding at the end the following: (2)
Subsequent funding
Of funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $25,000,000 for fiscal year 2008, to remain available until expended. . (d)
WIC farmers' market nutrition program
Section 17(m)(9)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(9)(A)) is amended by striking clause (ii) and inserting the following: (i)
Mandatory funding
Of funds of the Commodity Credit Corporation, the Secretary shall use to carry out this subsection $30,000,000 for fiscal year 2008, to remain available until expended. . (e)
Farmers market promotion program
Section 6 of the Farmer-to-Consumer Direct Marketing Act of 1976 (7 U.S.C. 3005) is amended by adding at the end the following: (f)
Mandatory funding
For each of fiscal years 2008 through 2013, the Secretary shall use $20,000,000 of funds of the Commodity Credit Corporation to carry out this section, to remain available until expended. . (f)
Grants for development of local food, bioenergy, and bioproducts systems
Section 231(b)(4)(B) of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106–224) (as added by section 3(b)(2)) is amended by adding at the end the following: (iii)
Development of local food, bioenergy, and bioproducts systems
(I)
In general
The Secretary shall ensure that not less than 30 percent of the competitive grants awarded during each of fiscal years 2008 through 2013 are awarded to producers of value-added agricultural products relating to developing local food, bioenergy, and bioproducts systems (such as supporting local markets, labeling of production location, local infrastructure, or local distribution). (II)
Specific projects
Not less than 50 percent of the grants specified in subclause (I) shall be used to fund projects that support the establishment of mid-tier food value-added chains intended to help mid-sized farms, through the marketing of differentiated products that adhere to sound social and environmental principles and equitable business practices at regional scales. (III)
Project details
Projects described in subclause (II) should— (aa)facilitate partnerships between businesses, cooperatives, non-profits, agencies, and educational institutions; (bb)have mid-sized farmer or rancher participation; (cc)include an agreement from the eligible agricultural producer group, farmer or rancher cooperative, or majority-controlled producer-based business venture engaged in the food value-added chain relating to the method for price determination; and (dd)articulate clear and transparent social, environmental, fair labor, and fair trade standards. . (g)
Assistance for community food projects
Section 25 of the Food Stamp Act of 1977 (7 U.S.C. 2034) is amended— (1)in subsection (a)(1)— (A)in subparagraph (B), by striking and at the end; (B)in subparagraph (C), by striking or at the end and inserting and; and (C)by adding at the end the following: (D)supply healthy local foods to underserved markets, including— (i)purchase of local foods by government and nonprofit institutions; (ii)provision of technical assistance for retail development in underserved areas; (iii)support of metropolitan production linked to community-based food services and markets (such as urban, community, school, and market gardens); (iv)provision of technical assistance for limited-resource and socially-disadvantaged applicants; (v)support of local purchase of foods by food banks and other emergency providers; and (vi)support of an information clearinghouse on innovative solutions to common community food security challenges; or ; (2)in subsection (b), by striking paragraph (1) and inserting the following: (1)
In general
For each of fiscal years 2008 through 2013, the Secretary shall use, of funds of the Commodity Credit Corporation— (A)$15,000,000 to make grants to assist eligible private nonprofit entities to establish and carry out community food projects; (B)$10,000,000 to encourage eligible private nonprofit entities to purchase of local foods for community food projects; (C)$10,000,000 to provide technical assistance under this section for retail development in underserved areas; (D)$10,000,000 for the community food project competitive grant program to support metropolitan production linked to community-based food services and markets (urban, community, school and market gardens); (E)$7,000,000 to provide technical assistance under this section for limited resource and socially disadvantaged applicants for community food project funds; (F)$5,000,000 for the community food project competitive grant program to support food policy councils and food system networks to develop demonstration regional food authorities; (G)$3,000,000 to support local purchase of foods by food banks and other emergency food providers under this section; and (H)$500,000 to support an information clearinghouse on innovative solutions to common community food security challenges. ; and (3)in subsection (h)(4), by striking 2007 and inserting 2013.
6.
Broadband requirements
(a)
Findings
Congress finds the following: (1)While data collection on broadband access and affordability could be improved, several reports indicate that both factors have led to a digital divide in the nation, with rural areas lagging behind suburban and urban areas. (2)Even as early as 2000, a joint Department of Commerce and Department of Agriculture report demonstrated that there was a noticeable disparity in the availability of broadband access between rural and urban areas, with less than 5 percent of towns smaller than 10,000 people having broadband access, while 56 percent of cities with populations of 100,000 and 65 percent of cities with populations of 250,000 have broadband access. (3)A February 2002 report by the Department of Commerce found that among Internet users, only 12.2 percent of such users located in rural areas had high speed connections versus 21.2 percent of such users located in urban areas. Furthermore, the report found higher income households were more likely to have broadband access than lower income households. (4)A September 2004 report by the Department of Commerce evidenced growth in broadband subscribers among all Internet users, however, the broadband access gap between rural (24.7 percent) and urban areas (40.4 percent) remained. (5)A May 2006 report by the Government Accountability Office found that 17 percent of rural households subscribe to broadband service, while suburban households had a broadband subscription rate 11 percent higher and urban households had a broadband subscription rate 12 percent higher than that of rural households. (6)A May 2006 report by the Government Accountability Office found that data collected by the Federal Communications Commission on broadband subscribers at a zip code level was of limited usefulness for an accurate assessment of local availability of broadband service, especially in rural areas. Moreover such report found that this lack of reliable information was a key obstacle in analyzing and targeting Federal aid for increasing access to broadband service. (7)Even with this limited zip code level data, the most recently released Federal Communications Commission data (for December 31, 2005) disclosed that 11 percent fewer of the lowest population density zip codes had at least 1 subscriber relative to the highest population density zip codes. (8)A February 2006 report prepared for the Economic Development Administration of the Department of Commerce found that communities with early broadband availability experienced more rapid growth in employment, number of businesses, and number of information technology businesses. (9)The United States is losing ground relative to other developed countries. According to the Organization for Economic Cooperation and Development, the United States now ranks 12th out of the 30 OECD countries in broadband access per 100 inhabitants. In 2001, the United States ranked 4th, behind only Korea, Sweden, and Canada. A similar worldwide ranking by the International Telecommunications Union put the United States even further behind at 16th in broadband penetration. (b)
Sense of the Senate
It is the sense of the Senate that, given the growing number of opportunities provided by broadband access, the digital divide affecting rural households and other underserved groups be eliminated not later than 10 years after the date of enactment of this Act with the ultimate goal of providing nationwide universal access to affordable broadband. (c)
Improving FCC data collection
(1)
Reporting requirements
(A)
General requirements
Not later than 180 days after the date of enactment of this Act, the Federal Communications Commission shall revise FCC Form 477 (relating to reporting requirements) to require each broadband service provider to report the following information: (i)Identification of where such provider provides broadband service to customers, identified by zip code plus 4 digit location (in this section referred to as service area). (ii)Percentage of households and businesses in each service area that are offered broadband service by such provider, and the percentage of such households that subscribe to each service plan offered. (iii)The average price per megabyte of download speed and upload speed in each service area. (iv)Identification by service area of such provider's broadband service's— (I)actual average throughput; and (II)contention ratio of the number of users sharing the same line. (B)
Exception
The Federal Communications Commission shall exempt a broadband service provider from the requirements in subparagraph (A) if the Commission determines that compliance with such reporting requirements by the provider is cost prohibitive, as defined by the Commission. (C)
Report to Joint Board
Not later than 1 year after the date of enactment of this Act, the Federal Communications Commission shall provide the Federal-State Joint Board established pursuant to section 410 of the Communications Act of 1934 with any and all data and analysis collected from the initial set of submitted revised Form 477s. (2)
Demographic information for unserved areas
The Federal Communications Commission, using available Census Bureau data, shall provide to Congress on an annual basis a report containing the following information for each service area that is not served by a broadband service provider: (A)Population. (B)Population density. (C)Average per capita income. (d)
Reviews and reports
(1)
Data transfer rate
Not later than 2 years after the date of enactment of this Act, and every 2 years thereafter, the Federal Communications Commission, in consultation with the Secretary of Agriculture and any other Federal agency that administers a broadband program, shall revise its definition of broadband to— (A)reflect a data rate— (i)greater than the 200 kilobits per second standard established in the Commission's Section 706 Report (14 FCC Rec. 2406); and (ii)consistent with data rates in the marketplace; and (B)promote uniformity in the definition of broadband service. (2)
USDA report
Not later than 90 days after the date of enactment of this Act, the Secretary of Agriculture shall report on the adoption or planned adoption of the recommendations contained in the September 2005 audit report by the Inspector General of the United States Department of Agriculture entitled Rural Utilities Service Broadband Grant and Loan Programs. (3)
Universal service
(A)
In general
Not later than 1 year after the date of enactment of this Act, the Federal-State Joint Board in accordance with the authority granted to such Board under section 254(c)(2) of the Communications Act of 1934 (47 U.S.C. 254(c)(2)) shall recommend to the Federal Communications Commission whether advanced services such as broadband service should be included in the definition of universal service. (B)
Definitions
In this paragraph: (i)
Federal-State Joint Board
The term Federal-State Joint Board means the joint board established pursuant to section 410 of the Communications Act of 1934 (47 U.S.C. 410). (ii)
Universal service
The term universal service means services that are to be supported by Federal universal support mechanisms under section 254 of the Communications Act of 1934 (47 U.S.C. 254).
7.
Offsets
(a)
Limitations on marketing loan gains, loan deficiency payments, and commodity certificate transactions
Section 1001 of the Food Security of 1985 (7 U.S.C. 1308) is amended— (1)in subsection (b), by striking $40,000 each place it appears and inserting $20,000; (2)in subsection (c), by striking $65,000 each place it appears and inserting $32,500; and (3)by striking subsection (d) and inserting the following: (d)
Limitations on marketing loan gains, loan deficiency payments, and commodity certificate transactions
(1)
Loan commodities
The total amount of the following gains and payments that a person may receive during any crop year may not exceed $75,000: (A)(i)Any gain realized by a producer from repaying a marketing assistance loan for 1 or more loan commodities under subtitle B of title I of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7931 et seq.) at a lower level than the original loan rate established for the loan commodity under that subtitle. (ii)In the case of settlement of a marketing assistance loan for 1 or more loan commodities under that subtitle by forfeiture, the amount by which the loan amount exceeds the repayment amount for the loan if the loan had been settled by repayment instead of forfeiture. (B)Any loan deficiency payments received for 1 or more loan commodities under that subtitle. (C)Any gain realized from the use of a commodity certificate issued by the Commodity Credit Corporation for 1 or more loan commodities, as determined by the Secretary, including the use of a certificate for the settlement of a marketing assistance loan made under that subtitle, with the gain reported annually to the Internal Revenue Service and to the taxpayer in the same manner as gains under subparagraphs (A) and (B). (2)
Other commodities
The total amount of the following gains and payments that a person may receive during any crop year may not exceed $75,000: (A)(i)Any gain realized by a producer from repaying a marketing assistance loan for peanuts, wool, mohair, or honey under subtitle B or C of title I of the Farm Security and Rural Investment Act of 2002 at a lower level than the original loan rate established for the commodity under those subtitles. (ii)In the case of settlement of a marketing assistance loan for peanuts, wool, mohair, or honey under those subtitles by forfeiture, the amount by which the loan amount exceeds the repayment amount for the loan if the loan had been settled by repayment instead of forfeiture. (B)Any loan deficiency payments received for peanuts, wool, mohair, and honey under those subtitles. (C)Any gain realized from the use of a commodity certificate issued by the Commodity Credit Corporation for peanuts, wool, mohair, or honey, as determined by the Secretary, including the use of a certificate for the settlement of a marketing assistance loan made under those subtitles, with the gain reported annually to the Internal Revenue Service and to the taxpayer in the same manner as gains under subparagraphs (A) and (B). . (b)
Rescissions
(1)
Section 32
Of the unobligated balances under section 32 of the August of August 24, 1935 (7 U.S.C. 612c), $37,601,000 is rescinded. (2)
Cushion of credit payments program
Of the funds derived from interest on the cushion of credit payments, as authorized by section 313 of the Rural Electrification Act of 1936 (7 U.S.C. 940c), $74,000,000 shall not be obligated and $74,000,000 is rescinded. (c)
Transfer of funds
For each of fiscal years 2008 through 2011, the Secretary of the Treasury shall transfer to the Commodity Credit Corporation from unobligated funds made available under section 32 of the August of August 24, 1935 (7 U.S.C. 612c), $125,500,000, to be used to carry out the amendments made by section 5.
8.
Regulations
(a)
In general
The Secretary of Agriculture may promulgate such regulations as are necessary to implement this Act and the amendments made by this Act. (b)
Procedure
The promulgation of the regulations and administration of this Act and the amendments made by this Act shall be made without regard to— (1)the notice and comment provisions of section 553 of title 5, United States Code; (2)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 (3)chapter 35 of title 44, United States Code (commonly known as the Paperwork Reduction Act). (c)
Congressional review of agency rulemaking
In carrying out this section, the Secretary shall use the authority provided under section 808 of title 5, United States Code.