1.Short title; table of
contents
(a)This Act may be cited
as the Rural Economic Farm and Ranch
Sustainability and Hunger Act of 2011
or the
REFRESH Act of
2011
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
TITLE I—Producer safety net
Subtitle A—Revenue-Based safety net
Sec. 1001. Aggregate risk and revenue management
program.
Sec. 1002. Supplemental insurance.
Subtitle B—Federal crop insurance program
Sec. 1201. Whole farm revenue insurance tools.
Sec. 1202. Insurance availability.
Sec. 1203. Crop insurance education assistance.
Subtitle C—Sugar program repeal
Sec. 1301. Repeal of sugar program.
Sec. 1302. Elimination of sugar price support and production
adjustment programs.
Sec. 1303. Elimination of sugar tariff and over-quota tariff
rate.
Sec. 1304. Application.
Subtitle D—Dairy program reform
PART I—Dairy producer margin protection and dairy market
stabilization programs
Sec. 1401. Definitions.
Sec. 1402. Calculation of average feed cost and actual dairy
producer margins.
SUBPART A—Dairy Producer Margin Protection Program
Sec. 1411. Establishment of dairy producer margin protection
program.
Sec. 1412. Eligibility and registration of dairy producers for
margin protection program.
Sec. 1413. Production history and annual production quantity of
participating dairy producers.
Sec. 1414. Basic margin protection.
Sec. 1415. Supplemental margin protection.
Sec. 1416. Effect of failure to pay administrative fees or
premiums.
Sec. 1417. No payment limitations.
SUBPART B—Dairy Market Stabilization Program
Sec. 1431. Establishment of dairy market stabilization
program.
Sec. 1432. Threshold for implementation and reduction in dairy
producer payments.
Sec. 1433. Producer milk marketings information.
Sec. 1434. Calculation and collection of reduced dairy producer
payments.
Sec. 1435. Remitting monies to Commodity Credit
Corporation.
Sec. 1436. Suspension of reduced payment
requirement.
Sec. 1437. Audit requirements.
Sec. 1438. Board of directors.
SUBPART C—Commodity Credit Corporation
Sec. 1451. Use of Commodity Credit Corporation.
SUBPART D—Duration
Sec. 1461. Duration.
PART II—Federal milk marketing order reform
Sec. 1471. Required amendments to Federal milk marketing
orders.
Sec. 1472. Amendment process.
Sec. 1473. Development of effective balancing programs for milk
markets.
Sec. 1474. Study on elimination of milk marketing
orders.
PART III—Repeal of superseded provisions
Sec. 1481. Repeal of dairy product price support and milk
income loss contract programs.
Sec. 1482. Repeal of permanent price support authority for
milk.
Sec. 1483. Repeal of dairy export incentive
program.
Sec. 1484. Effective date.
TITLE II—Conservation
Subtitle A—Conservation reserve
program
Sec. 2001. Conservation reserve
program.
Sec. 2002. Pilot program for enrollment of
wetland and buffer acreage in conservation reserve.
Sec. 2003. Duties of owners and
operators.
Sec. 2004. Payments.
Sec. 2005. Contracts.
Sec. 2006. Conversion of land subject to
contract to other conserving uses.
Subtitle B—Easement benefits
program
Sec. 2101. Easement benefits
program.
Subtitle C—Working land
program
Sec. 2201. Working land
program.
Subtitle D—Other conservation
programs
Sec. 2301. Other conservation programs of
the Food Security Act of 1985.
Sec. 2302. Funding of conservation
programs under Food Security Act of 1985.
Sec. 2303. Cooperative conservation
partnership initiative.
Sec. 2304. Administrative requirements for
conservation programs.
Sec. 2305. Repeal of healthy forests
reserve program.
TITLE III—Nutrition
Subtitle A—Supplemental nutrition
assistance program
Sec. 3001. Categorical eligibility
limitations.
Sec. 3002. Repeal of funding for
employment and training programs.
Sec. 3003. Repeal of incentive payments to
States with low SNAP benefit allocation error rates.
Sec. 3004. Quality control.
Subtitle B—Extensions
Sec. 3101. Supplemental nutrition
assistance program.
Sec. 3102. Commodity distribution
programs.
Sec. 3103. Miscellaneous.
TITLE IV—Energy from Rural America
Sec. 4001. Definitions.
Sec. 4002. Biobased markets
program.
Sec. 4003. Biorefinery
assistance.
Sec. 4004. Rural Energy for America
Program.
Sec. 4005. Repeal of feedstock flexibility
program for bioenergy producers.
Sec. 4006. Biomass Crop Assistance
Program.
Sec. 4007. Rural energy savings
program.
TITLE V—Technical improvements to
research
Sec. 5001. Matching fund requirement under
McIntire-Stennis Cooperative Forestry Act.
Sec. 5002. Matching fund requirement under
Hatch Act of 1887.
Sec. 5003. Matching fund requirement under
Smith-Lever Act.
Sec. 5004. Biomass Research and
Development Initiative.
2.In this Act, the
term Secretary means the Secretary of Agriculture.
<enum>I</enum><header>Producer safety
net</header>
<subtitle id="H3AE53DF6D8E74DF1A9260833A81177DC"><enum>A</enum><header>Revenue-Based
safety net</header>
<section id="H4B5DD13A555447509BAAF862DBFE62AD"><enum>1001.</enum><header>Aggregate risk
and revenue management program</header>
<subsection id="HECC2EDC9D1C64994AE5FE20C9DC33C43"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 1105 of the
Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8715) is amended to read
as follows:</text>
<quoted-block display-inline="no-display-inline" id="HE6025A270E55438089480CF468243A86" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H641B4392160345A78B867AB05B8D606D" section-type="subsequent-section"><enum>1105.</enum><header display-inline="yes-display-inline">Aggregate risk and revenue management
program</header>
<subsection commented="no" display-inline="no-display-inline" id="H93D211BB1EF349EC9E5E312C0C7DE274"><enum>(a)</enum><header display-inline="yes-display-inline">Definitions</header><text>In this
section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H8CD98760435848E2A942B88BFE4379D0"><enum>(1)</enum><header>Alternative
price</header><text>The term <term>alternative price</term> means an average of
the price for each of the immediately preceding 4 years, as determined by the
National Agricultural Statistics Service, for each crop for which the harvest
price is unavailable.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0832EB4818004784BBB474B1450C6955"><enum>(2)</enum><header>ARRM</header><text>The
term <term>ARRM</term> means the aggregate risk and revenue management program
established under this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7F8BFF746C1A40EDA94E0C701D877F6C"><enum>(3)</enum><header>CRD</header><text>The
term <term>CRD</term> means a crop reporting district, as determined by the
National Agricultural Statistics Service.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE56D3174D76344EA8A43CA06D0B9F606"><enum>(4)</enum><header>Harvest
price</header><text>The term <term>harvest price</term> means the harvest price
determined by the Risk Management Agency.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB647AB45C7E7471798EA05601961777C"><enum>(b)</enum><header>Availability and
election of alternative approach</header>
<paragraph id="H54D575357457487A872B51DCCFC03D9D"><enum>(1)</enum><header>Availability of
aggregate risk and revenue management payments</header><text>With respect to
all covered commodities and peanuts on a farm, during each of the 2013 through
2017 crop years, the Secretary shall give the operator, tenant, or
sharecropper, as appropriate, on the farm an opportunity to make an annual
election for all producers on the farm to receive aggregate risk and revenue
management payments under this section for the crop year for which the election
is made.</text>
</paragraph><paragraph id="H2029D45571254D728F39FCECA28A587E"><enum>(2)</enum><header>Limitations</header>
<subparagraph id="H2CDB777CFFE7417F9F41E50DEE527400"><enum>(A)</enum><header>In
general</header><text>The total number of planted acres for which the producers
on a farm may receive ARRM payments under this section shall be equal to the
total number of acres planted to all covered commodities and peanuts on the
farm.</text>
</subparagraph><subparagraph id="H705290F84A7548D68C5097C0588EB942"><enum>(B)</enum><header>Native
sod</header>
<clause id="HC4A93F48EDE142DE9DB3E74E7F0B8F21"><enum>(i)</enum><header>In
general</header><text>Native sod (as defined in section 508(o)(1) of the
Federal Crop Insurance Act (7 U.S.C. 1508(o)(1))) acreage that is tilled for
the purpose of producing an annual crop after the date of enactment of the
<short-title>Rural Economic Farm and Ranch Sustainability
and Hunger Act of 2011</short-title> shall not be considered acreage planted to
the covered commodity or peanuts for harvest on a farm in a crop year for
purposes of making ARRM payments under this section during the first 5 crop
years of planting.</text>
</clause><clause id="H92ADECB2214E49A287599C7451176117"><enum>(ii)</enum><header>Requirement</header><text>Ineligibility
under clause (i) shall only apply to the actual acreage of native sod that was
converted to crop production.</text>
</clause></subparagraph></paragraph><paragraph id="H100977A248C945F4A6D68844073BD619"><enum>(3)</enum><header>Election; time
for election</header>
<subparagraph id="HB79B9CE3CB75483CB9D96EE39CFC393E"><enum>(A)</enum><header>In
general</header><text>The Secretary shall provide notice to the operators,
tenants, or sharecroppers, as appropriate regarding the opportunity to make
each of the elections described in paragraph (1).</text>
</subparagraph><subparagraph id="HA0887855D99B45F49F07A8D476FD9A3E"><enum>(B)</enum><header>Notice
requirements</header><text>The notice shall include—</text>
<clause id="H0EBDDF9FBFFA498E81A4E4581DE71866"><enum>(i)</enum><text>notice of the
opportunity of the operator, tenant, or sharecropper, as appropriate, on a farm
to make the election; and</text>
</clause><clause id="HA2F203E9E3BB4C09A2747E8F75A1C5FD"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph></paragraph><paragraph id="H48D0A44F2ABF449589A81671918FF10D"><enum>(4)</enum><header>Election
deadline</header><text>Within the time period and in the manner prescribed
pursuant to paragraph (3), the operator, tenant, or sharecropper, as
appropriate, on a farm shall submit to the Secretary notice of an election made
under paragraph (1).</text>
</paragraph><paragraph id="HAC24B8790F2549689E31908843728BC7"><enum>(5)</enum><header>Effect of
failure to make election</header><text>If the operators, tenants, or
sharecroppers, as appropriate, on a farm fail to make an election 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
not have made the election described in paragraph (1), for the applicable crop
years.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H0EC22CB1EBE94A3EA042F8E1D9B57522"><enum>(c)</enum><header>Payments
required</header>
<paragraph id="HEC6429D130D342FF9D5D57F5C6DC0958"><enum>(1)</enum><header>In
general</header><text>In the case of producers on a farm who make an election
under subsection (b) to receive ARRM payments for any of the 2013 through 2017
crop years for all covered commodities and peanuts, the Secretary shall make
ARRM payments available to the producers on a farm in accordance with this
subsection.</text>
</paragraph><paragraph id="H7493ABED6CDC437D84C4A98B74622A22"><enum>(2)</enum><header>ARRM
payment</header>
<subparagraph id="HE160A6648DC3475A83BA82F7924C2E5E"><enum>(A)</enum><header>In
general</header><text>Subject to paragraph (3), in the case of producers on a
farm described in paragraph (1), the Secretary shall make ARRM payments
available to the producers on a farm for each crop year if—</text>
<clause id="HDC5D185A26904219AF6B0E2AF2153DA2"><enum>(i)</enum><text>the actual CRD
revenue for the crop year for the covered commodity or peanuts in the CRD
determined under subsection (e); is less than</text>
</clause><clause id="H488C31ADB58C4A1EB0F76A5B8E4F1EFB"><enum>(ii)</enum><text>the ARRM program
guarantee for the crop year for the covered commodity or peanuts in the CRD
determined under subsection (d).</text>
</clause></subparagraph><subparagraph id="H8997B7A317754F50ADBBE174A8EC3B71"><enum>(B)</enum><header>Individual
loss</header><text>The Secretary shall make ARRM payments available to the
producers on a farm in a CRD for a crop year only if (as determined by the
Secretary)—</text>
<clause id="H14687A4BFBC147EA8C7E64B817EAFD4D"><enum>(i)</enum><text>the actual farm
revenue for the crop year for the covered commodity or peanuts, as determined
under subsection (g); is less than</text>
</clause><clause id="H08449B5C178941F2831DA75C03E320FF"><enum>(ii)</enum><text>the farm ARRM
revenue guarantee for the crop year for the covered commodity or peanuts, as
determined under subsection (f).</text>
</clause></subparagraph></paragraph><paragraph id="H84BC7ADF2B9E4EFD84317432E64FEDB9"><enum>(3)</enum><header>Time for
payments</header><text>In the case of each of the 2013 through 2017 crop years,
the Secretary shall make ARRM payments beginning October 1, or as soon as
practicable thereafter, after the date of determination of the harvest price
for the covered commodity or peanuts.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1769885108B545CEBF37544FEA034402"><enum>(d)</enum><header>ARRM program
guarantee</header>
<paragraph id="HE633475854C448B68C4B3625DCAF62BF"><enum>(1)</enum><header>CRD
amount</header>
<subparagraph id="H4ADD23C7B89C4A6BBA486844E483EABF"><enum>(A)</enum><header>In
general</header><text>For purposes of subsection (c)(2)(A) and subject to
subparagraphs (B) and (C), the ARRM program guarantee for a crop year for a
covered commodity or peanuts in a CRD shall equal 90 percent of the CRD average
revenue, as determined under subparagraph (B).</text>
</subparagraph><subparagraph id="HF748106FA06D4D54A65046656B67E445"><enum>(B)</enum><header>CRD average
revenue</header><text>For purposes of subparagraph (A), the CRD average revenue
shall be the average during the marketing years for the immediately preceding 5
crops of a covered commodity and peanuts, excluding the year in which the CRD
revenue was the highest and the year in which the CRD revenue was the lowest in
the period, of the product obtained by multiplying—</text>
<clause id="HBB6C369A815143189D133A5085A9A75F"><enum>(i)</enum><text>the CRD yield for
the covered commodity or peanuts in a CRD determined under paragraph (2);
and</text>
</clause><clause id="H016508E325964E9083D168772E4F4768"><enum>(ii)</enum><text>the harvest price
or alternative price for the covered commodity or peanuts.</text>
</clause></subparagraph><subparagraph id="H2C50EE1C3D444F188271AF699AD270D8"><enum>(C)</enum><header>Minimum and
maximum guarantee</header><text>The ARRM 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.</text>
</subparagraph><subparagraph id="H8799E8ACFF9C42F895F798A7614560B6"><enum>(D)</enum><header>Double-cropped
acreage</header><text>Any crop subsequently planted on land determined for
purposes of the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) to be
prevented planted acreage shall not be included in calculating the ARRM program
guarantee under subparagraph (A) or the actual farm revenue under subsection
(g) unless the farm has a history of double-cropping and is located in a region
in which double-cropping is an acceptable farming practice, as determined by
the Secretary.</text>
</subparagraph></paragraph><paragraph id="H1D28726BC0A54B618FD1962C614ACFBE"><enum>(2)</enum><header>Assigned CRD
yield</header><text>If the Secretary cannot establish the CRD yield for each
planted acre for a crop year for a covered commodity or peanuts in a CRD in
accordance with subparagraph (A) or if the yield determined under subparagraph
(A) is an unrepresentative average yield for the CRD (as determined by the
Secretary), the Secretary shall assign a CRD yield for each planted acre for
the crop year for the covered commodity or peanuts in the CRD on the basis
of—</text>
<subparagraph id="HBDB6555C3EE04717933B991F2C5CA6DE"><enum>(A)</enum><text>previous average
yields for a period of 5 crop years, excluding each of the crop years with the
highest and lowest yields; or</text>
</subparagraph><subparagraph id="H155AAF782AED421FA7543B1220B032AE"><enum>(B)</enum><text>CRD yields for
planted acres for the crop year for the covered commodity or peanuts in similar
CRDs.</text>
</subparagraph></paragraph><paragraph id="HF0FBA7FE4A494767B99E211089F59117"><enum>(3)</enum><header>C<enum-in-header>RD</enum-in-header>s
with irrigated and nonirrigated land</header><text>In the case of a CRD in
which at least 25 percent of the acreage planted to a covered commodity or
peanuts in the CRD is irrigated and at least 25 percent of the acreage planted
to the covered commodity or peanuts in the CRD is not irrigated, the Secretary
shall calculate a separate ARRM program guarantee for the irrigated and
nonirrigated areas of the CRD for the covered commodity or peanuts.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF10369B9A273449BAFF0DAF3BC9ECF9A"><enum>(e)</enum><header>Actual CRD
revenue</header>
<paragraph id="H29CD11770FF64CAD8CD373D80101C3EF"><enum>(1)</enum><header>In
general</header><text>For purposes of subsection (c)(2)(A), the amount of the
actual CRD revenue for a crop year of a covered commodity or peanuts shall
equal the product obtained by multiplying—</text>
<subparagraph id="H5CE094A35F3648358A7F07E4EB605393"><enum>(A)</enum><text>the actual CRD
yield for each planted acre for the crop year for the covered commodity or
peanuts determined under paragraph (2); and</text>
</subparagraph><subparagraph id="H912017E253CE479385A1B400FD0A523E"><enum>(B)</enum><text>the national
average harvest price or alternative price received by producers for the crop
year for the covered commodity or peanuts as determined by the Risk Management
Agency.</text>
</subparagraph></paragraph><paragraph id="H219DCDF35B674EC881D7F2A0EF425230"><enum>(2)</enum><header>Actual CRD
yield</header><text>For purposes of paragraph (1)(A), the actual CRD yield for
each planted acre for a crop year for a covered commodity or peanuts in a CRD
shall equal (as determined by the Secretary)—</text>
<subparagraph id="HC35BCD116DBF4C92A4FCBC18637910B2"><enum>(A)</enum><text>the quantity of
the covered commodity or peanuts that is produced in the CRD during the crop
year; divided by</text>
</subparagraph><subparagraph id="H0B261644D5A04E3BBB54BD9789591286"><enum>(B)</enum><text>the number of
acres that are planted to the covered commodity or peanuts in the CRD during
the crop year.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8AFB61CBDB7C4353A22EC353AEDB64D9"><enum>(f)</enum><header>Farm ARRM
revenue guarantee</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE5BB55960CD74EEA867000B9BD731120"><enum>(1)</enum><header>In
general</header><text>For purposes of subsection (c)(2)(B), the farm ARRM
revenue guarantee for the crop year for a covered commodity or peanuts shall
equal 90 percent of the average farm revenue as determined under paragraph
(2).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0692CCBBC95D402CADE0A11F1668A334"><enum>(2)</enum><header>Average farm
revenue</header><text>The average farm revenue shall be equal to the sum
obtained by adding—</text>
<subparagraph id="H127121E3489B4BF88FABC0F0382C4D94"><enum>(A)</enum><text>the average during
the marketing years for the immediately preceding 5 crops of a covered
commodity and peanuts, excluding the year in which the farm revenue was the
highest and the year in which the farm revenue was the lowest in the period, of
the product obtained by multiplying—</text>
<clause id="H3D8AC5E068B1469C8648E5C6487EA993"><enum>(i)</enum><text>the actual
production history, as determined using production records and data of the Risk
Management Agency; and</text>
</clause><clause id="H29365584697C46B5AB35A3C4DAE80FE4"><enum>(ii)</enum><text>the harvest price
or alternative price for the covered commodity or peanuts in a CRD; and</text>
</clause></subparagraph><subparagraph id="HE8D844EB56DB47F79A544C82306E028A"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDB7D90BB0E9B4219BE3A0225766A2F64"><enum>(g)</enum><header>Actual farm
revenue</header><text>For purposes of subsection (c)(2)(B) and except as
provided in subsection (d)(1)(C), the amount of the actual farm revenue for a
crop year for a covered commodity or peanuts shall equal the amount determined
by multiplying—</text>
<paragraph id="HE084F886A4F74D4C92B9EA70B1939142"><enum>(1)</enum><text>the actual yield
for the covered commodity or peanuts of the producers on the farm; and</text>
</paragraph><paragraph id="H5BE838D95C0C4CA3AEEB2E9C454D78D0"><enum>(2)</enum><text>the national
average harvest price or alternative price for the crop year for the covered
commodity or peanuts.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H9564FC006F16493F86481F16C5289712"><enum>(h)</enum><header>Payment
amount</header><text>If ARRM payments are required to be paid for any of the
2013 through 2017 crop years of a covered commodity or peanuts under this
section, the amount of the ARRM 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—</text>
<paragraph id="HCA5D75C086AD41399C5426FEAF11C8A7"><enum>(1)</enum><text>the lesser
of—</text>
<subparagraph id="H0A7BBBA92AA546A7AAC9A63622A20B35"><enum>(A)</enum><text>the difference
between—</text>
<clause id="HED585C4235E44681969E7B079A5DBD3E"><enum>(i)</enum><text>the ARRM program
guarantee for the crop year for the covered commodity or peanuts in the CRD
determined under subsection (d); and</text>
</clause><clause id="H5F2590E557AB4D64A38CE8A0929BA502"><enum>(ii)</enum><text>the actual CRD
revenue from the crop year for the covered commodity or peanuts in the CRD
determined under subsection (e); and</text>
</clause></subparagraph><subparagraph id="H915B9B283A924374AEA68CE73831ECC9"><enum>(B)</enum><text>15 percent of the
ARRM program guarantee for the crop year for the covered commodity or peanuts
in the CRD determined under subsection (d);</text>
</subparagraph></paragraph><paragraph id="H288BC2CD2B3F486F95082A9C3B0D4F48"><enum>(2)</enum><text>85 percent of the
acreage planted to the covered commodity or peanuts for harvest on the farm in
the crop year; and</text>
</paragraph><paragraph id="HBC5908DC4AB74494B6DC2CA25F58D2E4"><enum>(3)</enum><text>the quotient
obtained by dividing—</text>
<subparagraph id="HBF1448CB42574081A8380D8EAD19221B"><enum>(A)</enum><text>the actual
production history for the covered commodity or peanuts of the producers on the
farm, as determined using production records and data of the Risk Management
Agency; and</text>
</subparagraph><subparagraph id="HC5C6E803C24B4D1DAF7D48C60770C033"><enum>(B)</enum><text>the assigned CRD
yield for each planted acre for the crop year for the covered commodity or
peanuts in a CRD, as determined under subsection (d)(2).</text>
</subparagraph></paragraph></subsection><subsection id="HC288B39100134EBD838615F0856793D7"><enum>(i)</enum><header>Crop reporting
district assessment</header><text>The Secretary shall review CRDs in western
States that have 7 or fewer CRDs to assess whether additional CRDs in the
States are
necessary.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HB4F5140581EC43408692A96263F652D5"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="HEF34702E97FE41CF913AAB29B6E066C1"><enum>(1)</enum><header>Repeal of direct
and counter-cyclical payments for covered commodities and peanuts</header>
<subparagraph id="H39616CA3F76B433D9B39F581E4C65347"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Sections 1103, 1104,
1303, and 1304 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C.
8713, 8714, 8753, 8754) are repealed.</text>
</subparagraph><subparagraph id="H50F736667F6D404797E712FD38D62BE7"><enum>(B)</enum><header>Application</header><text>The
amendments made by paragraph (1) apply beginning with the 2013 crop
year.</text>
</subparagraph></paragraph><paragraph id="H27004E840682428D95582357BBA0B84C"><enum>(2)</enum><header>Period of
effectiveness</header><text display-inline="yes-display-inline">Section 1109 of
the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8719) is amended by
striking <quote>2012</quote> and inserting <quote>2017</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0A68EC00925F43B5A724DCCB5AE28EEB"><enum>(3)</enum><header>Suspension of
permanent price support authority</header><text display-inline="yes-display-inline">Section 1602 of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 8782) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HEFDF2C51A31F40CABB18F8B53F21DCBE"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>through 2012</quote>
each place it appears and inserting <quote>through 2017</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2D824CEEAD1746FBB81DC583CF2CB7ED"><enum>(B)</enum><text>by striking
<quote>December 31, 2012</quote> each place it appears and inserting
<quote>December 31, 2017</quote>.</text>
</subparagraph></paragraph><paragraph id="H360174BD656F422BBBCC43D1839AD904"><enum>(4)</enum><header>Technical
amendments</header>
<subparagraph id="H9805168D86504131978FA4F83EABA306"><enum>(A)</enum><text>Section 1001 of
the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8702) is amended by
striking paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H7C4A1A27E203432F9D74D325FE791C19" style="OLC">
<paragraph id="H9383BAE6CA3541AA92B1BC51584162C0"><enum>(1)</enum><header>Aggregate risk
and revenue management payment</header><text>The term <term>aggregate risk and
revenue management payment</term> means a payment made to producers on a farm
under section 1105.</text>
</paragraph><after-quoted-block></after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HF6ECAEF5A15746DF893EAA65CDF9AF2D"><enum>(B)</enum><text>Section 1101(d)(1)
of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8711(d)(1)) is
amended by striking <quote>average crop revenue election</quote> and inserting
<quote>aggregate risk and revenue management</quote>.</text>
</subparagraph><subparagraph id="H3C519E6A57E64330BCAD5D25A03FD69C"><enum>(C)</enum><text>Section 1106 of
the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8716) is amended by
striking <quote>average crop revenue election</quote> each place it appears in
subsections (a)(1), (b), and (e) and inserting <quote>aggregate risk and
revenue management</quote>.</text>
</subparagraph><subparagraph id="H87DCDF4566DC4785A2B549EF00EF6082"><enum>(D)</enum><text>Section 1302(d)(1)
of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8752(d)(1)) is
amended by striking <quote>average crop revenue election</quote> and inserting
<quote>aggregate risk and revenue management</quote>.</text>
</subparagraph><subparagraph id="HE6ADA142FDAE42FEBD3F63FAEE2AE0AA"><enum>(E)</enum><text>Section 1305 of
the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8755) is amended by
striking <quote>average crop revenue election</quote> each place it appears in
subsections (a)(1), (b), and (e) and inserting <quote>aggregate risk and
revenue management</quote>.</text>
</subparagraph><subparagraph id="H4ECB64B591C44A3CA3708ABD05D23EF8"><enum>(F)</enum><text>Section 1001 of
the Food Security Act of 1985 (7 U.S.C. 1308) is amended—</text>
<clause id="H36D23497485048C69049ABF4F05CC160"><enum>(i)</enum><text>by
striking <quote><header-in-text level="subsection" style="OLC">ACRE</header-in-text></quote> each place it appears in the headings
of subsections (b) and (c) and inserting <quote><header-in-text level="subsection" style="OLC">ARRM</header-in-text></quote>;</text>
</clause><clause id="H83FEFB5EAB8B4DFA9C05246238E51805"><enum>(ii)</enum><text>by
striking <quote><header-in-text level="paragraph" style="OLC">ACRE</header-in-text></quote> each place it appears in the headings
of paragraph (3) of subsections (b) and (c) and inserting
<quote><header-in-text level="paragraph" style="OLC">ARRM</header-in-text></quote>; and</text>
</clause><clause id="H948A413FC2D647C5BE05E6AFBD211C5A"><enum>(iii)</enum><text>by
striking <quote>average crop revenue election</quote> each place it appears in
subsections (b) and (c) and inserting <quote>aggregate risk and revenue
management</quote>.</text>
</clause></subparagraph><subparagraph id="HACB4C23A78854B9D8DCB758D2DE6EA9E"><enum>(G)</enum><text display-inline="yes-display-inline">Section 1001D of the Food Security Act of
1985 (7 U.S.C. 1308–3a) is amended—</text>
<clause id="H603EA6E4432E4C5FA7996B124B81BB84"><enum>(i)</enum><text>in
subsection (b)(C)(i), by striking <quote>average crop revenue election</quote>
and inserting <quote>aggregate risk and revenue management</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA19ADDA8E7754953AF17D331A0D3E43E"><enum>(ii)</enum><text display-inline="yes-display-inline">in subsection (f), by striking
<quote>2012</quote> and inserting <quote>2017</quote>.</text>
</clause></subparagraph></paragraph></subsection></section><section id="HECD319114D5B43C1BF55014D2F3F531B"><enum>1002.</enum><header>Supplemental
insurance</header>
<subsection id="HD2D859F7BF1341809B1372DD24DFFB58"><enum>(a)</enum><header>In
general</header><text>Section 508(c)(4) of the Federal Crop Insurance Act (7
U.S.C. 1508(c)(4)) is amended—</text>
<paragraph id="H9DB2F1ECCD7845D98EC83F1030B56F6A"><enum>(1)</enum><text>by striking
<quote>The level of coverage</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H5D6DCF9256FD4C5191AC1414355CBEC1" style="OLC">
<subparagraph id="HA6C52AE407AB4B29BC3F2FB018946A27"><enum>(A)</enum><header>Basic
coverage</header><text>The level of
coverage</text>
</subparagraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA5BA230DE5A5437BAC4E759F6A07A618"><enum>(2)</enum><text>by striking
<quote>Not later than</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H49E6B4E2755A43F1B76D2588121298E0" style="OLC">
<subparagraph id="HF6A19DED884F41EBAD2B2E3843581D08"><enum>(B)</enum><header>Provision of
information</header><text>Not later
than</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H1BE297119AD94CB6AC1C982BEFF968C2"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H59C2F49D3551497188494C94DC67BCBA" style="OLC">
<subparagraph id="HF92939DF90A04A58B1B102707BE2F75E"><enum>(C)</enum><header>Supplemental
coverage</header>
<clause id="HFCA5E05578724CA7BDCC8593FCD7C19A"><enum>(i)</enum><header>In
general</header><text>Notwithstanding paragraph (3) and subparagraph (A), the
Corporation may offer supplemental coverage, based on an area yield and loss
basis, to cover that portion of a crop loss not covered under the individual
yield and loss basis plan of insurance of a producer, including any revenue
plan of insurance with coverage based in part on individual yield and
loss.</text>
</clause><clause id="H0E5C3E015B324F1A893814202A6C971D"><enum>(ii)</enum><header>Limitation</header><text>The
sum of the indemnity paid to the producer under the individual yield and loss
plan of insurance and the supplemental coverage may not exceed 100 percent of
the loss incurred by the producer for the crop.</text>
</clause><clause id="H72D792C1152B4E66929737EAFCE1FF9E"><enum>(iii)</enum><header>Administrative
and operating expense reimbursement</header><text>Notwithstanding subsection
(k)(4), the reimbursement rate for approved insurance providers for the
supplemental coverage shall equal 6 percent of the premium used to define the
loss ratio.</text>
</clause><clause id="HF2ADCE45F8E34ECAB94E8E944D24832F"><enum>(iv)</enum><header>Direct
coverage</header><text>If the Corporation determines that it is in the best
interests of producers, the Corporation may offer supplemental coverage as a
Corporation endorsement to existing plans and policies of crop insurance
authorized under this title.</text>
</clause><clause id="H44D6A2FD746242FA9B89905A92F9FCC8"><enum>(v)</enum><header>Payment of
portion of premium by corporation</header><text>Notwithstanding subsection (e),
the amount of the premium to be paid by the Corporation for supplemental
coverage offered pursuant to this subparagraph shall be determined by the
Corporation, but may not exceed the sum of—</text>
<subclause id="H247B4B884BA64C4AA5C20A3CB4D15129"><enum>(I)</enum><text>50 percent of the
amount of premium established under subsection (d)(2)(C)(i) for the coverage
level selected; and</text>
</subclause><subclause id="HA7434A0B9FBD466E817D7DDB3127D4A5"><enum>(II)</enum><text>the amount
determined under subsection (d)(2)(C)(ii) for the coverage level selected to
cover operating and administrative
expenses.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HA2DE3E8C28844A7C8CAD96AD06DE7A00"><enum>(b)</enum><header>Conforming
amendments</header><text>Section 508(d)(2) of the Federal Crop Insurance Act (7
U.S.C. 1508(d)(2)) is amended—</text>
<paragraph id="HC7E06C4486C7439DB526D849BE7A6F60"><enum>(1)</enum><text>in the matter
preceding subparagraph (A), by striking <quote>additional coverage</quote> and
inserting <quote>additional and supplemental coverages</quote>; and</text>
</paragraph><paragraph id="HA7E5499575B441DBBF4ECA39609EA355"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HD59CC0E348934E068223F462DE14F06A" style="OLC">
<subparagraph id="HAB9C505C57414EEBA2B4A18DC2804780"><enum>(C)</enum><text>In the case of
supplemental coverage offered under subsection (c)(4)(C), the amount of the
premium shall—</text>
<clause id="HD3B9CB641DF841B4854F4EC6D55C7046"><enum>(i)</enum><text>be
sufficient to cover anticipated losses and a reasonable reserve; and</text>
</clause><clause id="H0DD24C5F8D5648988CC80FE89AD320D3"><enum>(ii)</enum><text>include an amount
for operating and administrative expenses, as determined by the Corporation on
an industry-wide basis as a percentage of the amount of the premium used to
define loss
ratio.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section></subtitle><subtitle id="H7189FA140A564CEE89751EFCD5091835"><enum>B</enum><header>Federal crop
insurance program</header>
<section id="H7908945C0BBC463181C57A9EE4A69A57"><enum>1201.</enum><header>Whole farm
revenue insurance tools</header>
<subsection id="H0CFDEC1EB6B241C0826EA1455194E543"><enum>(a)</enum><header>Establishment</header><text>Section
508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H7A0A1CB926F248AEAF39DB2BC759F2B3" style="OLC">
<paragraph id="H4B9E30A4653F462399E86D6BAAA71872"><enum>(11)</enum><header>Whole farm
insurance plan</header><text>The Corporation shall offer a whole farm insurance
plan that allows a producer to qualify for an indemnity if actual gross farm
revenue is below 80 percent of the average gross farm revenue of the
producer.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H1EF39493ED054500A1301FA0CA4BAEB3"><enum>(b)</enum><header>Adjusted gross
revenue insurance pilot program</header><text>Section 523(e) of the Federal
Crop Insurance Act (7 U.S.C. 1523(e)) is amended—</text>
<paragraph id="H625C501E5BF4457E85099E9741972F34"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>2004</quote> and inserting <quote>2014</quote>;</text>
</paragraph><paragraph id="H9955DC362B88435DA92D3E4C46E607C6"><enum>(2)</enum><text>in paragraph (2),
by striking subparagraph (A) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H7736FF3DE9B64631B41D8FC25AA73A32" style="OLC">
<subparagraph id="H3B39C9D0D6FF4F42A96C9202089D3C9D"><enum>(A)</enum><header>In
general</header><text>In addition to counties otherwise included in the pilot
program, the Corporation shall include in the pilot program for each of the
2010 through 2014 reinsurance years all States and counties that meet the
criteria for selection (pending required rating), as determined by the
Corporation.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H9EE667F71989419E9F6AF3DF008A8ABB"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HD4CDF5C876BB4928AF5936F3651C3A90" style="OLC">
<paragraph id="HFF37C40CEF1A444A8E9287B57A81A7E9"><enum>(3)</enum><header>Eligible
producers</header><text>The Corporation shall permit the producer of any type
of agricultural commodity (including a producer of specialty crops,
floricultural, ornamental nursery, and Christmas tree crops, turfgrass sod,
seed crops, aquacultural products (including ornamental fish), sea grass and
sea oats, and industrial crops) to participate in a pilot program established
under this
subsection.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H7426B01368FE488C9A3AFE552BF4EB63"><enum>1202.</enum><header>Insurance
availability</header>
<subsection id="H4004638138034196A57112086058F6DE"><enum>(a)</enum><header>Conducting
research and development</header><text>Section 522(c) of the Federal Crop
Insurance Act (7 U.S.C. 1522(c)) is amended—</text>
<paragraph id="HBE270EC91C77486F97C9ABB892999FAC"><enum>(1)</enum><text>in the subsection
heading, by striking <quote><header-in-text level="subsection" style="OLC">contracting</header-in-text></quote>;</text>
</paragraph><paragraph id="H12DEC63EC5F342B7B65A5F2AD90B0990"><enum>(2)</enum><text>in paragraph (1),
in the matter preceding paragraph (A), by striking <quote>enter into contracts
to carry out research and development to</quote> and inserting <quote>conduct
activities or enter into contracts to carry out research and development to
maintain or improve existing policies or develop new policies
to</quote>;</text>
</paragraph><paragraph id="HCE245EA9E6764B3D8EFBAAAF8AFD869D"><enum>(3)</enum><text>in paragraph
(2)—</text>
<subparagraph id="H698C2C56DFE8473581A9C8397B356E3B"><enum>(A)</enum><text>in subparagraph
(A), by inserting <quote>conduct research and development or</quote> after
<quote>The Corporation may</quote>; and</text>
</subparagraph><subparagraph id="HA2D5E77948C4447FA4E07B904BFEC954"><enum>(B)</enum><text>in subparagraph
(B), by inserting <quote>conducting research and development or</quote> after
<quote>Before</quote>; and</text>
</subparagraph></paragraph><paragraph id="HEBDF8EBB54074CBA8F459F70FBCB003F"><enum>(4)</enum><text>in paragraph (5),
by inserting <quote>after expert review in accordance with section
505(e)</quote> after <quote>approved by the Board</quote>.</text>
</paragraph></subsection><subsection id="H3294A6D1173A4228ABB8E647EC58A034"><enum>(b)</enum><header>Funding</header><text>Section
522(e) of the Federal Crop Insurance Act (7 U.S.C. 1522(e)) is amended—</text>
<paragraph id="H300ADD8B71264C22A150C36C35E35910"><enum>(1)</enum><text>in paragraph
(2)—</text>
<subparagraph id="HD594A8ED188A4A2D92B1492255BC0D69"><enum>(A)</enum><text>in the paragraph
heading, by striking <quote><header-in-text level="paragraph" style="OLC">Contracting</header-in-text></quote> and inserting
<quote><header-in-text level="paragraph" style="OLC">Conducting and contracting
for research and development</header-in-text></quote>;</text>
</subparagraph><subparagraph id="HF9451DF2854E445BAFDCA58A06AA3DFB"><enum>(B)</enum><text>in subparagraph
(A), by inserting <quote>conduct research and development and</quote> after
<quote>the Corporation may use to</quote>; and</text>
</subparagraph><subparagraph id="H78DCC5A8D7B345289059C26AD1A641D6"><enum>(C)</enum><text>in subparagraph
(B), by inserting <quote>conduct research and development and</quote> after
<quote>for the fiscal year to</quote>;</text>
</subparagraph></paragraph><paragraph id="HBE8424956ED84AFEA248C8DF50063A34"><enum>(2)</enum><text>in paragraph (3),
in the matter preceding subparagraph (A), by striking <quote>to provide either
reimbursement payments or contract payments under this section for a fiscal
year is not needed for such purposes</quote> and inserting <quote>for a fiscal
year is not needed for the purposes for which the amount was made
available</quote>; and</text>
</paragraph><paragraph id="H88730555E1804C33B925909450C3E67D"><enum>(3)</enum><text>by striking
paragraph (4).</text>
</paragraph></subsection></section><section id="H4C1DE21E9DBC4FC9BD925D43C5C2CDF5"><enum>1203.</enum><header>Crop insurance
education assistance</header><text display-inline="no-display-inline">Section
524(a)(3) of the Federal Crop Insurance Act (7 U.S.C. 1524(a)(3)) is
amended—</text>
<paragraph id="HFEB2CFFE47FC41C9991749577513075F"><enum>(1)</enum><text>in subparagraph
(B), by striking <quote>A grant</quote> and inserting <quote>Subject to
subparagraph (E), a grant</quote>; and</text>
</paragraph><paragraph id="H02F0139F82134EC2A226C04115E75A72"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H94C33F19503D4C3CB31C1D54DCF20FEA" style="OLC">
<subparagraph id="HDE5ABCBC45E141B79F8E91929CF9F9B5"><enum>(E)</enum><header>Allocation to
States</header><text>The Secretary shall allocate funds made available to carry
out this subsection for each fiscal year in a manner that ensures that grants
are provided to eligible entities in States based on the ratio that the value
of agricultural production of each State bears to the total value of
agricultural production in all States, as determined by the
Secretary.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section></subtitle><subtitle id="H674DBCE03EA44AA3ABA0201581AB4114"><enum>C</enum><header>Sugar program
repeal</header>
<section id="HAC9AA0012A234B0E8A4C96CA00945969" section-type="subsequent-section"><enum>1301.</enum><header>Repeal of sugar
program</header><text display-inline="no-display-inline">Section 156 of the
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272) is
repealed.</text>
</section><section id="H4232A7A2BAAF4033A99DEBAB38CDDD0F"><enum>1302.</enum><header>Elimination of
sugar price support and production adjustment programs</header>
<subsection id="H45EE50F4F30E4CE5B5EC46B76DCA3239"><enum>(a)</enum><header>In
general</header><text>Notwithstanding any other provision of law—</text>
<paragraph id="H35E32A100466406E86AE00621B6ED8D1"><enum>(1)</enum><text>a
processor of any of the 2013 or subsequent crops of sugarcane or sugar beets
shall not be eligible for a loan under any provision of law with respect to the
crop; and</text>
</paragraph><paragraph id="HD1263672229246C6A16BC5CAE895D087"><enum>(2)</enum><text>the Secretary of
Agriculture may not make price support available, whether in the form of a
loan, payment, purchase, or other operation, for any of the 2013 and subsequent
crops of sugar beets and sugarcane by using the funds of the Commodity Credit
Corporation or other funds available to the Secretary.</text>
</paragraph></subsection><subsection id="HE8A2CA21F17C4B52BB2C6EE7269E2AD5"><enum>(b)</enum><header>Termination of
marketing quotas and allotments</header>
<paragraph id="H051780D07E5B4EC4837B27991EEE14E2"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Part VII of subtitle
B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et
seq.) is repealed.</text>
</paragraph><paragraph id="H014B4A8C79B44EEFB80A172AAF5A135A"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 344(f)(2) of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1344(f)(2)) is amended by striking <quote>sugar cane for sugar,
sugar beets for sugar,</quote>.</text>
</paragraph></subsection><subsection id="HA076230D31C442A8A79CEE6C4EA16B34"><enum>(c)</enum><header>General
powers</header>
<paragraph id="H57379919A52C44788B64E1AF3E6A9909"><enum>(1)</enum><header>Section 32
activities</header><text>Section 32 of the Act of August 24, 1935 (7 U.S.C.
612c), is amended in the second sentence of the first paragraph—</text>
<subparagraph id="HE6267907D7D340E7AF9CFA8C81CD95E0"><enum>(A)</enum><text>in paragraph (1),
by inserting <quote>(other than sugar beets and sugarcane)</quote> after
<quote>commodities</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H35A65650F19E450A9385BD80377E094D"><enum>(B)</enum><text>in paragraph (3),
by inserting <quote>(other than sugar beets and sugarcane)</quote> after
<quote>commodity</quote>.</text>
</subparagraph></paragraph><paragraph id="HA8DA5884FDC741D889CF37FA779438E4"><enum>(2)</enum><header>Powers of
commodity credit corporation</header><text>Section 5(a) of the Commodity Credit
Corporation Charter Act (15 U.S.C. 714c(a)) is amended by inserting <quote>,
sugar beets, and sugarcane</quote> after <quote>tobacco</quote>.</text>
</paragraph><paragraph id="HCE0BDD0545FB4518B69B8D9B94C26419"><enum>(3)</enum><header>Price support
for nonbasic agricultural commodities</header><text>Section 201(a) of the
Agricultural Act of 1949 (7 U.S.C. 1446(a)) is amended by striking <quote>milk,
sugar beets, and sugarcane</quote> and inserting <quote>, and
milk</quote>.</text>
</paragraph><paragraph id="H357B61A2732D4BA79A1E7BEF9FB2B8F7"><enum>(4)</enum><header>Commodity Credit
Corporation storage payments</header><text>Section 167 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7287) is
repealed.</text>
</paragraph><paragraph id="HEE7CD8140211460691F4920D0863EBE5"><enum>(5)</enum><header>Suspension and
repeal of permanent price support authority</header><text>Section 171(a)(1) of
the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7301(a)(1)) is amended—</text>
<subparagraph id="H2E79B79242AF4154BD56741E277E78C7"><enum>(A)</enum><text>by striking
subparagraph (E); and</text>
</subparagraph><subparagraph id="HAE8E257BFDA943F29FEACA540DEDB01F"><enum>(B)</enum><text>by redesignating
subparagraphs (F) through (I) as subparagraphs (E) through (H),
respectively.</text>
</subparagraph></paragraph><paragraph id="HFFFF602B3C3641549FAF1FE2863DB4F3"><enum>(6)</enum><header>Storage facility
loans</header><text>Section 1402(c) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 7971) is repealed.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H20E7FCCFA55F4A06B7FEF25CFDF62B7D"><enum>(d)</enum><header>Transition
provisions</header><text>This section and the amendments made by this section
shall not affect the liability of any person under any provision of law as in
effect before the application of this section and the amendments made by this
section.</text>
</subsection></section><section id="H25C6A74D401D41FCBB7501D83CE1AE51"><enum>1303.</enum><header>Elimination of
sugar tariff and over-quota tariff rate</header>
<subsection id="HACE0311F36F046458EAFA49C1DD48F09"><enum>(a)</enum><header>Elimination of
Tariff on Raw Cane Sugar</header><text>Chapter 17 of the Harmonized Tariff
Schedule of the United States is amended by striking subheadings 1701.11
through 1701.11.50 and inserting in numerical sequence the following new
subheading, with the article description for such subheading having the same
degree of indentation as the article description for subheading 1701.11, as in
effect on the day before the date of the enactment of this section:</text>
<quoted-block display-inline="no-display-inline" id="H19C4C89BEA714EA38433568235F0A6BF" style="OLC">
<table align-to-level="section" blank-lines-before="1" colsep="1" frame="none" line-rules="hor-ver" rowsep="0" rule-weights="0.0.0.0.4.17" table-template-name="Duty Modification" table-type="exception-quote">
<tgroup block-style="1" cols="7" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="0.7.9"><colspec coldef="txt-no-ldr-no-spread" colname="column1" colsep="1" colwidth="8pts" min-data-value="8"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column2" colwidth="33pts" min-data-value="33"></colspec><colspec coldef="txt" colname="column3" colwidth="105pts" min-data-value="60"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column4" colwidth="45pts" min-data-value="45"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column5" colwidth="45pts" min-data-value="45"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column6" colwidth="45pts" min-data-value="45"></colspec><colspec align="right" coldef="txt-no-ldr" colname="column7" colwidth="7pts" min-data-value="4"></colspec>
<tbody>
<row><entry align="left" colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1"></entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0" valign="top">1701.11.00</entry><entry colname="column3" leader-modify="force-ldr-bottom" rowsep="0">Cane
sugar</entry><entry align="left" colname="column4" leader-modify="clr-ldr" rowsep="0" valign="bottom">Free</entry><entry align="left" colname="column5" leader-modify="clr-ldr" rowsep="0" valign="bottom"></entry><entry align="left" colname="column6" leader-modify="clr-ldr" rowsep="0" valign="bottom">39.85¢/kg</entry><entry align="right" colname="column7" leader-modify="clr-ldr" rowsep="0" valign="bottom"></entry>
</row>
</tbody>
</tgroup></table>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H2BAC1D0FF55D4DABA00F3C801B17E5CB"><enum>(b)</enum><header>Elimination of
tariff on beet sugar</header><text>Chapter 17 of the Harmonized Tariff Schedule
of the United States is amended by striking subheadings 1701.12 through
1701.12.50 and inserting in numerical sequence the following new subheading,
with the article description for such subheading having the same degree of
indentation as the article description for subheading 1701.12, as in effect on
the day before the date of the enactment of this section:</text>
<quoted-block display-inline="no-display-inline" id="H39777678F53A4AC6A1B7113C53D1CE02" style="OLC">
<table align-to-level="section" blank-lines-before="1" colsep="1" frame="none" line-rules="hor-ver" rowsep="0" rule-weights="0.0.0.0.4.17" table-template-name="Duty Modification" table-type="exception-quote">
<tgroup block-style="1" cols="7" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="0.7.9"><colspec coldef="txt-no-ldr-no-spread" colname="column1" colsep="1" colwidth="8pts" min-data-value="8"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column2" colsep="1" colwidth="33pts" min-data-value="33"></colspec><colspec coldef="txt" colname="column3" colwidth="104pts" min-data-value="60"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column4" colwidth="45pts" min-data-value="45"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column5" colsep="1" colwidth="45pts" min-data-value="45"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column6" colwidth="45pts" min-data-value="45"></colspec><colspec coldef="fig" colname="column7" colwidth="8pts" min-data-value="2"></colspec>
<tbody>
<row><entry align="left" colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1"></entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0" valign="top">1701.12.00</entry><entry align="left" colname="column3" leader-modify="force-ldr-bottom" rowsep="0" valign="bottom">Beet sugar</entry><entry align="left" colname="column4" leader-modify="clr-ldr" rowsep="0" valign="bottom">Free</entry><entry align="left" colname="column5" leader-modify="clr-ldr" rowsep="0" valign="bottom"></entry><entry align="left" colname="column6" leader-modify="clr-ldr" rowsep="0" valign="bottom">42.05¢/kg </entry><entry align="right" colname="column7" leader-modify="clr-ldr" rowsep="0" valign="bottom"></entry>
</row>
</tbody>
</tgroup></table>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H6C87CA9BBC2247D89E32B2CFBA856B0C"><enum>(c)</enum><header>Elimination of
tariff on certain refined sugar</header><text>Chapter 17 of the Harmonized
Tariff Schedule of the United States is amended—</text>
<paragraph id="HE2A48EBD083B41688DC02F9524256276"><enum>(1)</enum><text>by striking the
superior text immediately preceding subheading 1701.91.05 and by striking
subheadings 1701.91.05 through 1701.91.30 and inserting in numerical sequence
the following new subheading, with the article description for such subheading
having the same degree of indentation as the article description for subheading
1701.12.05, as in effect on the day before the date of the enactment of this
section:</text>
<quoted-block display-inline="no-display-inline" id="HEB61659D8D954E2B8A77278F14625272" style="OLC">
<table align-to-level="section" blank-lines-before="1" colsep="1" frame="none" line-rules="hor-ver" rowsep="0" rule-weights="0.0.0.0.4.17" table-template-name="Duty Modification" table-type="exception-quote">
<tgroup block-style="1" cols="7" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="0.7.9"><colspec coldef="txt-no-ldr-no-spread" colname="column1" colsep="1" colwidth="8pts" min-data-value="8"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column2" colsep="1" colwidth="33pts" min-data-value="33"></colspec><colspec coldef="txt" colname="column3" colsep="1" colwidth="104pts" min-data-value="60"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column4" colsep="1" colwidth="45pts" min-data-value="45"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column5" colsep="1" colwidth="45pts" min-data-value="45"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column6" colwidth="45pts" min-data-value="45"></colspec><colspec coldef="fig" colname="column7" colwidth="8pts" min-data-value="2"></colspec>
<tbody>
<row><entry align="left" colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1"></entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0" valign="top">1701.91.02</entry><entry align="left" colname="column3" leader-modify="force-ldr-bottom" rowsep="0" valign="bottom">Containing added coloring but not containing added flavoring
matter</entry><entry align="left" colname="column4" leader-modify="clr-ldr" rowsep="0" valign="bottom">Free</entry><entry align="left" colname="column5" leader-modify="clr-ldr" rowsep="0" valign="bottom"></entry><entry align="left" colname="column6" leader-modify="clr-ldr" rowsep="0" valign="bottom">42.05¢/kg</entry><entry align="right" colname="column7" leader-modify="clr-ldr" rowsep="0" valign="bottom"></entry>
</row>
</tbody>
</tgroup></table>
<after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HF74C48564C7F425D8D0B520089CCEB31"><enum>(2)</enum><text>by striking
subheadings 1701.99 through 1701.99.50 and inserting in numerical sequence the
following new subheading, with the article description for such subheading
having the same degree of indentation as the article description for subheading
1701.99, as in effect on the day before the date of the enactment of this
section:</text>
<quoted-block display-inline="no-display-inline" id="H028C4F6BC6804EDCA1E7822C655A3D64" style="OLC">
<table align-to-level="section" blank-lines-before="1" colsep="1" frame="none" line-rules="hor-ver" rowsep="0" rule-weights="0.0.0.0.4.17" table-template-name="Duty Modification" table-type="exception-quote">
<tgroup block-style="1" cols="7" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="0.7.9"><colspec coldef="txt-no-ldr-no-spread" colname="column1" colsep="1" colwidth="8pts" min-data-value="8"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column2" colsep="1" colwidth="33pts" min-data-value="33"></colspec><colspec coldef="txt" colname="column3" colsep="1" colwidth="104pts" min-data-value="60"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column4" colsep="1" colwidth="45pts" min-data-value="45"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column5" colsep="1" colwidth="45pts" min-data-value="45"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column6" colwidth="45pts" min-data-value="45"></colspec><colspec coldef="fig" colname="column7" colwidth="8pts" min-data-value="2"></colspec>
<tbody>
<row><entry align="left" colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1"></entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0" valign="top">1701.99.00</entry><entry align="left" colname="column3" leader-modify="force-ldr-bottom" rowsep="0" valign="bottom">Other</entry><entry align="left" colname="column4" leader-modify="clr-ldr" rowsep="0" valign="bottom">Free</entry><entry align="left" colname="column5" leader-modify="clr-ldr" rowsep="0" valign="bottom"></entry><entry align="left" colname="column6" leader-modify="clr-ldr" rowsep="0" valign="bottom">42.05¢/kg </entry><entry align="right" colname="column7" leader-modify="clr-ldr" rowsep="0" valign="bottom"></entry>
</row>
</tbody>
</tgroup></table>
<after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H41F4C43BEE65498BB10E32B9B3F7F61B"><enum>(3)</enum><text>by striking the
superior text immediately preceding subheading 1702.90.05 and by striking
subheadings 1702.90.05 through 1702.90.20 and inserting in numerical sequence
the following new subheading, with the article description for such subheading
having the same degree of indentation as the article description for subheading
1702.60.22:</text>
<quoted-block display-inline="no-display-inline" id="HE8AF81FEFE5A4BDEA9FCAA590D5A5614" style="OLC">
<table align-to-level="section" blank-lines-before="1" colsep="1" frame="none" line-rules="hor-ver" rowsep="0" rule-weights="0.0.0.0.4.17" table-template-name="Duty Modification" table-type="exception-quote">
<tgroup block-style="1" cols="7" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="0.7.9"><colspec coldef="txt-no-ldr-no-spread" colname="column1" colsep="1" colwidth="8pts" min-data-value="8"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column2" colsep="1" colwidth="33pts" min-data-value="33"></colspec><colspec coldef="txt" colname="column3" colsep="1" colwidth="104pts" min-data-value="60"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column4" colsep="1" colwidth="45pts" min-data-value="45"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column5" colwidth="45pts" min-data-value="45"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column6" colwidth="45pts" min-data-value="45"></colspec><colspec coldef="fig" colname="column7" colwidth="8pts" min-data-value="2"></colspec>
<tbody>
<row><entry align="left" colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1"></entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0" valign="top">1702.90.02</entry><entry align="left" colname="column3" leader-modify="force-ldr-bottom" rowsep="0" valign="bottom">Containing soluble non-sugar solids (excluding any foreign
substances, including but not limited to molasses, that may have been added to
or developed in the product) equal to 6 percent or less by weight of the total
soluble solids</entry><entry align="left" colname="column4" leader-modify="clr-ldr" rowsep="0" valign="bottom">Free</entry><entry align="left" colname="column5" leader-modify="clr-ldr" rowsep="0" valign="bottom"> </entry><entry align="left" colname="column6" leader-modify="clr-ldr" rowsep="0" valign="bottom">42.05¢/kg </entry><entry align="right" colname="column7" leader-modify="clr-ldr" rowsep="0" valign="bottom"></entry>
</row>
</tbody>
</tgroup></table>
<after-quoted-block>;</after-quoted-block></quoted-block>
<continuation-text continuation-text-level="paragraph">and</continuation-text></paragraph><paragraph id="HF55FC7D9AB2F4CDF8085FED8C2E11C83"><enum>(4)</enum><text>by striking the
superior text immediately preceding subheading 2106.90.42 and by striking
subheadings 2106.90.42 through 2106.90.46 and inserting in numerical sequence
the following new subheading, with the article description for such subheading
having the same degree of indentation as the article description for subheading
2106.90.39:</text>
<quoted-block display-inline="no-display-inline" id="H0FBF294C7CE34CB5A15BA393A0BAD056" style="OLC">
<table align-to-level="section" blank-lines-before="1" colsep="1" frame="none" line-rules="hor-ver" rowsep="0" rule-weights="0.0.0.0.4.17" table-template-name="Duty Modification" table-type="exception-quote">
<tgroup block-style="1" cols="7" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="0.7.9"><colspec coldef="txt-no-ldr-no-spread" colname="column1" colsep="1" colwidth="8pts" min-data-value="8"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column2" colsep="1" colwidth="33pts" min-data-value="33"></colspec><colspec coldef="txt" colname="column3" colwidth="104pts" min-data-value="60"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column4" colwidth="45pts" min-data-value="45"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column5" colwidth="45pts" min-data-value="45"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column6" colwidth="45pts" min-data-value="45"></colspec><colspec coldef="fig" colname="column7" colwidth="8pts" min-data-value="2"></colspec>
<tbody>
<row><entry align="left" colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1"></entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0" valign="top">2106.90.40</entry><entry align="left" colname="column3" leader-modify="force-ldr-bottom" rowsep="0" valign="bottom">Syrups derived from cane or beet sugar, containing added
coloring but not added flavoring matter</entry><entry align="left" colname="column4" leader-modify="clr-ldr" rowsep="0" valign="bottom">Free</entry><entry align="left" colname="column5" leader-modify="clr-ldr" rowsep="0" valign="bottom"> </entry><entry align="left" colname="column6" leader-modify="clr-ldr" rowsep="0" valign="bottom">42.50¢/kg </entry><entry align="right" colname="column7" leader-modify="clr-ldr" rowsep="0" valign="bottom"></entry>
</row>
</tbody>
</tgroup></table>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H563B4D7225CC4E73B36139C559F1907B"><enum>(d)</enum><header>Conforming
amendment</header><text>Chapter 17 of the Harmonized Tariff Schedule of the
United States is amended by striking additional U.S. note 5.</text>
</subsection><subsection id="H74F573952B7A4381A121AE5E8E8EE547"><enum>(e)</enum><header>Administration
of Tariff-Rate Quotas</header><text>Section 404(d)(1) of the Uruguay Round
Agreements Act (19 U.S.C. 3601(d)(1)) is amended—</text>
<paragraph id="H44919EF7D82348C793A9B4077F56517C"><enum>(1)</enum><text>by inserting
<quote>or</quote> at the end of subparagraph (B);</text>
</paragraph><paragraph id="H427FACE2238B45A0B48B57C3642D9338"><enum>(2)</enum><text>by striking
<quote>; or</quote> at the end of subparagraph (C) and inserting a period;
and</text>
</paragraph><paragraph id="HACEA4EEECA2548A8A2DEF63061C78608"><enum>(3)</enum><text>by striking
subparagraph (D).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCBF75D232FDC44E58286624948AF8324"><enum>(f)</enum><header>Effective
date</header><text>The amendments made by this section apply with respect to
goods entered, or withdrawn from warehouse for consumption, on or after the
15th day after the date of the enactment of this Act.</text>
</subsection></section><section id="HB2791F632F8448B281D4711DA1958609"><enum>1304.</enum><header>Application</header><text display-inline="no-display-inline">Except as otherwise provided in this
subtitle, this subtitle and the amendments made by this subtitle shall apply
beginning with the 2013 crop of sugar beets and sugarcane.</text>
</section></subtitle><subtitle id="H1D02CE4C5A8B42DD8251A336139DB6B8"><enum>D</enum><header>Dairy program
reform</header>
<part id="HA6E1AC4577CD4640B4DFA5B1299A7855"><enum>I</enum><header>Dairy
producer margin protection and dairy market stabilization programs</header>
<section id="H9CBE83DC0A454838B183908332835AA6"><enum>1401.</enum><header>Definitions</header><text display-inline="no-display-inline">In this part:</text>
<paragraph id="HA0A92E0AE6794B31B0FBAB8DCD436068"><enum>(1)</enum><header>Actual dairy
producer margin</header><text display-inline="yes-display-inline">The term
<quote>actual dairy producer margin </quote> means the difference between the
all-milk price and the average feed cost, as calculated under section
1402.</text>
</paragraph><paragraph id="H8B710FB8F17C4061B2ED35129C185739"><enum>(2)</enum><header>All-milk
price</header><text>The term <quote>all-milk price</quote> means the average
price received, per hundredweight of milk, by dairy producers for all milk sold
to plants and dealers in the United States, as reported by the National
Agricultural Statistics Service.</text>
</paragraph><paragraph id="H547A0E1100B44373B8AD583228F3F69E"><enum>(3)</enum><header>Annual
production quantity</header><text display-inline="yes-display-inline">The term
<quote>annual production quantity</quote> means the quantity of annual milk
marketings determined for a dairy producer under section 1413(b) for each year
in which the dairy producer participates in the margin protection
program.</text>
</paragraph><paragraph id="H7746775614EB4651AD08528DF4DFD642"><enum>(4)</enum><header>Average feed
cost</header><text display-inline="yes-display-inline">The term <quote>average
feed cost</quote> means the average cost of feed used by a dairy operation to
produce a hundredweight of milk, determined under section 1402 using the sum of
the following:</text>
<subparagraph id="HAD184491AADB42A9A6520E87113DC522"><enum>(A)</enum><text>The product
determined by multiplying 1.192 by the price of corn per bushel.</text>
</subparagraph><subparagraph id="H00EF80565E2145E7A47F5FFEC535CD34"><enum>(B)</enum><text display-inline="yes-display-inline">The product determined by multiplying
0.00817 by the price of soybean meal per ton.</text>
</subparagraph><subparagraph id="H2618D79BB28B4BFA937BCA8AC9915729"><enum>(C)</enum><text display-inline="yes-display-inline">The product determined by multiplying
0.0152 by the price of alfalfa hay per ton.</text>
</subparagraph></paragraph><paragraph id="HCFE4111BD97E4FC4A2B8FC05A0886FD5"><enum>(5)</enum><header>Board of
directors</header><text>The term <quote>board of directors</quote> means the
board of directors appointed by the Secretary under section 1438.</text>
</paragraph><paragraph id="HDCC4C4A9C7204E098BFDB51D906AA34F"><enum>(6)</enum><header>Consecutive
two-month period</header><text>The term <quote>consecutive two-month
period</quote> refers to the two-month period consisting of the months of
January and February, March and April, May and June, July and August, September
and October, or November and December, respectively.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H6D5EF4E7F3D649888D5B9D0AB8C78B6C"><enum>(7)</enum><header>Dairy
producer</header><text display-inline="yes-display-inline">The term
<quote>dairy producer</quote> means an individual or entity that directly or
indirectly (as determined by the Secretary)—</text>
<subparagraph id="H0F0B679DB5734B8AB7648AA81FD4447F"><enum>(A)</enum><text>shares in the risk
of producing milk; and</text>
</subparagraph><subparagraph id="HA98137E1EE554243A9345A442CC8D389"><enum>(B)</enum><text>makes
contributions (including land, labor, management, equipment, or capital) to the
dairy 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.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HA7CB245B4DF54BD790F22A6A35363F52"><enum>(8)</enum><header>Handler</header>
<subparagraph id="H7DCA835D66774D0D984149E0D055D9B0"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The term
<quote>handler</quote> means a person making payment to a dairy producer for
milk produced in the United States and marketed for commercial use.</text>
</subparagraph><subparagraph id="HDF2667268FBE445A971148ADDBB831CC"><enum>(B)</enum><header>Producer-handler</header><text>The
term includes a producer-handler.</text>
</subparagraph></paragraph><paragraph id="HE2E432823AA14E48ACF8E57255947D96"><enum>(9)</enum><header>Margin
protection program</header><text display-inline="yes-display-inline">The term
<quote>margin protection program</quote> means the dairy producer margin
protection program required by subpart A.</text>
</paragraph><paragraph id="H41CBDEEB6AD2402AACD228549CE9F6A2"><enum>(10)</enum><header>Participating
dairy producer</header><text>The term <quote>participating dairy
producer</quote> means a dairy producer that—</text>
<subparagraph id="H3FE6E56F58BB47A8A615B77D78E9354B"><enum>(A)</enum><text display-inline="yes-display-inline">registers under section 1412(b) to
participate in the margin protection program under subpart A; and</text>
</subparagraph><subparagraph id="HE19FCD9741E7434D9B5496C2051EBE7D"><enum>(B)</enum><text>as a result of
such registration, also participates in the stabilization program under subpart
B.</text>
</subparagraph></paragraph><paragraph id="HD59403A36E704EC8B505997CBBB0BE10"><enum>(11)</enum><header>Production
history</header><text display-inline="yes-display-inline">The term
<quote>production history</quote> means the quantity of annual milk marketings
determined for a dairy producer under section 1413(a).</text>
</paragraph><paragraph id="HFE9D6CA0DEC64D2582A267340198FF26"><enum>(12)</enum><header>Secretary</header><text display-inline="yes-display-inline">The term <quote>Secretary</quote> means the
Secretary of Agriculture.</text>
</paragraph><paragraph id="HE57038FDF86E45F1927CCA16044ADE8E"><enum>(13)</enum><header>Stabilization
program</header><text display-inline="yes-display-inline">The term
<quote>stabilization program</quote> means the dairy market stabilization
program required by subpart B for all participating dairy producers.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H20C2AC645AD54E428D090F7A2FF70543"><enum>(14)</enum><header>Stabilization
program base</header><text>The term <quote>stabilization program base</quote>,
with respect to a participating dairy producer, means the stabilization program
base calculated for the producer under section 1431(b).</text>
</paragraph><paragraph id="H6D10713767A54108A8C1C3F2B34644BE"><enum>(15)</enum><header>United
States</header><text display-inline="yes-display-inline">The term <quote>United
States</quote>, in a geographical sense, means the 50 States.</text>
</paragraph></section><section id="HB394B969BC3B43C7A87865D08030425B"><enum>1402.</enum><header>Calculation of
average feed cost and actual dairy producer margins</header>
<subsection display-inline="no-display-inline" id="H42845F0EC27B446992332DD7A93910EB"><enum>(a)</enum><header>Calculation of
average feed cost</header><text display-inline="yes-display-inline">The
Secretary shall calculate the national average feed cost for each month using
the following data:</text>
<paragraph id="HE2382C8AFE80422FB461E60D9E9362CA"><enum>(1)</enum><text display-inline="yes-display-inline">The price of corn for a month shall be the
price received during that month by farmers in the United States for corn, as
reported by the National Agricultural Statistics Service.</text>
</paragraph><paragraph id="HAAAF9AC3ECF4444EAFC1EE9E6991E2CF"><enum>(2)</enum><text display-inline="yes-display-inline">The price of soybean meal for a month shall
be the central Illinois price for soybean meal, as reported by the Agricultural
Marketing Service.</text>
</paragraph><paragraph id="H0661771EC4CD41C484F46DEEE1718C2D"><enum>(3)</enum><text display-inline="yes-display-inline">The price of alfalfa hay for a month shall
be the price received during that month by farmers in the United States for
alfalfa hay, as reported by the National Agricultural Statistics
Service.</text>
</paragraph></subsection><subsection id="H83D85857100348F5A69BCA0CABC079AE"><enum>(b)</enum><header>Calculation of
actual dairy producer margins</header>
<paragraph display-inline="no-display-inline" id="H795E74AEBFEE4BD689418F3B3E817E19"><enum>(1)</enum><header>Margin
protection program</header><text display-inline="yes-display-inline">For use in
the margin protection program under subpart A, the Secretary shall calculate
the actual dairy producer margin for each consecutive two-month period by
subtracting—</text>
<subparagraph id="HB1CF232729F04CDC9F4462A98AC13982"><enum>(A)</enum><text>the average feed
cost for that consecutive two-month period, determined in accordance with
subsection (a); from</text>
</subparagraph><subparagraph id="H9D9A5CE57A854E14AACAC046B9A70B11"><enum>(B)</enum><text>the all-milk price
for that consecutive two-month period.</text>
</subparagraph></paragraph><paragraph id="HFFB1711A3B834FA48938E21E63D7866A"><enum>(2)</enum><header>Stabilization
program</header><text display-inline="yes-display-inline">For use in the
stabilization program under subpart B, the Secretary shall calculate (not later
than 20th of each month) the actual dairy producer margin for the preceding
month by subtracting—</text>
<subparagraph id="H9BD4837A5AB1440A8057B3DB50022A67"><enum>(A)</enum><text>the average feed
cost for that preceding month, determined in accordance with subsection (a);
from</text>
</subparagraph><subparagraph id="H0BE1098228C64D1ABBB24B4F37CD9561"><enum>(B)</enum><text>the all-milk price
for that preceding month.</text>
</subparagraph></paragraph></subsection></section><subpart id="HCAB5B15D10BD4DE494F756D0EEA1EEB0"><enum>A</enum><header>Dairy Producer
Margin Protection Program</header>
<section id="H66B79C8880E44BCEA0D7A72544F0995E"><enum>1411.</enum><header>Establishment
of dairy producer margin protection program</header><text display-inline="no-display-inline">The Secretary shall establish and administer
a dairy producer margin protection program for the purpose of protecting dairy
producer income by paying participating dairy producers—</text>
<paragraph id="H253A4B3DF5E447CFB47F0B5DAC91E914"><enum>(1)</enum><text display-inline="yes-display-inline">basic margin protection payments when
actual dairy producer margins are less than the threshold levels for such
payments; and</text>
</paragraph><paragraph id="H089EF71455FF4455ADECF6B472359693"><enum>(2)</enum><text display-inline="yes-display-inline">supplemental margin protection payments if
purchased by a participating dairy producer.</text>
</paragraph></section><section id="H2B09D0D70E8C4E9580B6227853A29824"><enum>1412.</enum><header>Eligibility
and registration of dairy producers for margin protection program</header>
<subsection id="H8B85309683B74C3C88040DA68046288A"><enum>(a)</enum><header>Eligibility</header><text display-inline="yes-display-inline">All dairy producers in the United States
are eligible to participate in the margin protection program, except that a
dairy producer must be registered with the Secretary before the producer may
receive—</text>
<paragraph id="HEF03A6AC6F984ED6A871A4941130101D"><enum>(1)</enum><text>basic margin
protection payments under section 1414; and</text>
</paragraph><paragraph id="H956BD53099694AEEA992EE5D6BDB3984"><enum>(2)</enum><text display-inline="yes-display-inline">if the dairy producer purchases
supplemental margin protection under section 1415, supplemental margin
protection payments under such section.</text>
</paragraph></subsection><subsection id="H681661AFFF7F4D01A88E4C21B3020B53"><enum>(b)</enum><header>Registration
process</header>
<paragraph id="HE615505938A34163A1A94BAF20234ED4"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary shall
register all interested dairy producers in the margin protection program. The
Secretary shall specify the manner and form by which a dairy producer must
register.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H30F286750C2E4AD2B73131683A336EA2"><enum>(2)</enum><header>Treatment of
multi-producer operations</header><text display-inline="yes-display-inline">If
a dairy operation consists of more than one dairy producer, all of the dairy
producers of the operation shall be treated as a single dairy producer for
purposes of—</text>
<subparagraph id="HE078E37D0CAF4A62BB61F630F17D7C67"><enum>(A)</enum><text>registration to
receive basic margin protection and purchase supplemental margin
protection;</text>
</subparagraph><subparagraph id="HE80DEFE3908044C5BB45F6DCBBFA4F4F"><enum>(B)</enum><text>payment of the
administrative fee under subsection (d) and producer premiums under section
1415; and</text>
</subparagraph><subparagraph id="H3732904DD0224DE88B66D8C10AEF124B"><enum>(C)</enum><text>participation in
the stabilization program under subpart B.</text>
</subparagraph></paragraph><paragraph id="H1EB4B037AB2B4BF3B8DB345CCBEFF55C"><enum>(3)</enum><header>Treatment of
Producers with Multiple dairy Operations</header><text display-inline="yes-display-inline">If a dairy producer operates two or more
dairy operations, each dairy operation of the producer shall require a separate
registration to receive basic margin protection and purchase supplemental
margin protection. Only those dairy operations so registered shall be subject
to the stabilization program.</text>
</paragraph></subsection><subsection id="HDBCCE4883FED48CEAA4B4905A718F862"><enum>(c)</enum><header>Time for
registration</header>
<paragraph id="H895B31F46BE64223BDFAC1A0D3303EB2"><enum>(1)</enum><header>Existing Dairy
Producers</header><text>During the one-year period beginning on the date of the
enactment of this Act, a dairy producer that is actively engaged in a dairy
operation as of such date may register with the Secretary—</text>
<subparagraph id="HEAF0DF2BA2404F7C8646D1E051C7A417"><enum>(A)</enum><text>to receive basic
margin protection; and</text>
</subparagraph><subparagraph id="H2E126E2252334F1A9C73073B44A0794D"><enum>(B)</enum><text>if the producer
elects, to purchase supplemental margin protection.</text>
</subparagraph></paragraph><paragraph commented="no" id="H18C38903214D4371976302F3AF02359D"><enum>(2)</enum><header>New
Entrants</header><text display-inline="yes-display-inline">A dairy producer
that has no existing interest in a dairy operation as of the date of the
enactment of this Act, but that, after such date, establishes a new dairy
operation, may register with the Secretary during the 180-day period beginning
on the date on which the dairy operation first markets milk
commercially—</text>
<subparagraph commented="no" id="HA3B7F53663BF4054872CD28EAEA963F8"><enum>(A)</enum><text>to receive basic
margin protection; and</text>
</subparagraph><subparagraph commented="no" id="H9AB1D2559EC14C9085DE91CE5A602057"><enum>(B)</enum><text>if the producer
elects, to purchase supplemental margin protection.</text>
</subparagraph></paragraph></subsection><subsection id="H5C1C41461AF749B1946114EDC1F9AD67"><enum>(d)</enum><header>Administrative
fee for registration</header>
<paragraph id="HB3353FF4FBD447E09A2B9E82D6DC8CCE"><enum>(1)</enum><header>Administrative
fee required</header><text display-inline="yes-display-inline">A dairy producer
shall pay an administrative fee under this subsection to register for the
margin protection program. The participating dairy producer shall pay the
administrative fee annually thereafter to remain registered for the margin
protection program.</text>
</paragraph><paragraph id="H8E371D66BE7F4282B604F21DEAECE808"><enum>(2)</enum><header>Fee
amount</header><text>The administrative fee for a dairy producer shall be as
follows:</text>
<subparagraph id="H2D2E16F40F8D4E60A63BB0208F89D1D0"><enum>(A)</enum><text>If the dairy
producer marketed less than 10 million pounds of milk in the previous calendar
year, the administrative fee shall be equal to $100.</text>
</subparagraph><subparagraph id="H028EF97D38094AF19F7BF2F77284CF8E"><enum>(B)</enum><text display-inline="yes-display-inline">If the dairy producer marketed between 10
million and 40 million pounds of milk in the previous calendar year, the
administrative fee shall be equal to $400.</text>
</subparagraph><subparagraph id="H4F6AB75B714A4619A57D86930B765311"><enum>(C)</enum><text display-inline="yes-display-inline">If the dairy producer marketed more than 40
million pounds of milk in the previous calendar year, the administrative fee
shall be equal to $1,000.</text>
</subparagraph></paragraph></subsection><subsection id="H0FF8B621245046C4A39B7E37EDF33167"><enum>(e)</enum><header>Reconstitution</header><text display-inline="yes-display-inline">The Secretary shall ensure that a dairy
producer does not reconstitute a dairy operation for the sole purpose of
receiving basic margin protection, purchasing supplemental margin protection,
or avoiding participation in the stabilization program.</text>
</subsection></section><section id="HE8F90CFF5739449BA093602581AFEA4B"><enum>1413.</enum><header>Production
history and annual production quantity of participating dairy
producers</header>
<subsection id="H4B8DDCED07844BA18686291F0561BA6C"><enum>(a)</enum><header>Determination of
production history</header>
<paragraph id="H05DC4FECAFF84032BD6A3E8E3238459F"><enum>(1)</enum><header>Determination
required</header><text display-inline="yes-display-inline">The Secretary shall
determine the production history of the dairy operation of each participating
dairy producer in the margin protection program.</text>
</paragraph><paragraph commented="no" id="H632F691665E84E40A579E8BA1A688B96"><enum>(2)</enum><header>Calculation</header><text display-inline="yes-display-inline">Except as provided in paragraph (3), the
production history of a participating dairy producer is equal to the highest
annual milk marketings of the dairy producer during any one of the three
calendar years immediately preceding the dairy producer’s registration for
participation in the margin protection program.</text>
</paragraph><paragraph id="H0835493CD5FC40349AFC0DBE312453CE"><enum>(3)</enum><header>New
producers</header><text display-inline="yes-display-inline">If a dairy producer
has been in operation for less than a year, the Secretary shall determine the
production history of the dairy producer by extrapolating the actual milk
marketings for the months the dairy producer has been in operation to a yearly
amount.</text>
</paragraph><paragraph commented="no" id="H6ABDC1A7C98846899A2651671F1C6619"><enum>(4)</enum><header>No change in
production history for basic margin protection</header><text display-inline="yes-display-inline">Once the production history of a
participating dairy producer is determined under paragraph (2) or (3), the
production history shall not be subsequently changed for purposes of
determining the amount of any basic margin protection payments for the dairy
producer made under section 1414.</text>
</paragraph></subsection><subsection id="H03C3A1BFF84242CE8D699290B3F0C2A7"><enum>(b)</enum><header>Determination of
annual production quantity for supplemental margin protection</header>
<paragraph id="HADACB6FC6F36405F8CFBF4DB96A29C18"><enum>(1)</enum><header>Determination
required</header><text display-inline="yes-display-inline">If a dairy producer
selects the growth option when purchasing supplemental margin protection under
section 1415, the Secretary shall determine the annual production quantity of
the dairy operation of the dairy producer under paragraph (2).</text>
</paragraph><paragraph commented="no" id="H42819BD52C9C4AC7BFC7BAD9DB6546D1"><enum>(2)</enum><header>Calculation</header><text display-inline="yes-display-inline">The annual production quantity of a
participating dairy producer is equal to the actual milk marketings of the
dairy producer during each calendar year in which the dairy producer purchases
supplemental margin protection, including the calendar year during which the
dairy producer first purchases such supplemental margin protection.</text>
</paragraph></subsection><subsection id="HA50B2ED4C561478EA60191A6EF940055"><enum>(c)</enum><header>Required
information</header><text display-inline="yes-display-inline">A participating
dairy producer shall provide all information that the Secretary may require in
order to establish—</text>
<paragraph id="HCE5F89121D6D469882739C29C865A477"><enum>(1)</enum><text display-inline="yes-display-inline">the production history of the dairy
operation of the dairy producer; and</text>
</paragraph><paragraph id="H8418C5BF9FBC409D8607ACC87AE7D2B3"><enum>(2)</enum><text display-inline="yes-display-inline">the annual production quantity of the dairy
operation of the dairy producer if the dairy producer selects the growth option
when purchasing supplemental margin protection under section 1415.</text>
</paragraph></subsection><subsection id="HCBBAE6BB148545F790C3DD9B19FBA858"><enum>(d)</enum><header>Transfer of
production history or annual production quantity</header>
<paragraph id="H7F6ACA85B27746A68E11E81E22C96EC9"><enum>(1)</enum><header>Transfer by
sale</header>
<subparagraph id="HB9F83E2A40F64A63A4E3CB993923F194"><enum>(A)</enum><header>Request for
transfer</header><text display-inline="yes-display-inline">If an existing dairy
producer, as described in section 1412(c)(1), sells an entire dairy operation
to another party, the seller and purchaser may jointly request that the
Secretary transfer to the purchaser the seller’s interest in—</text>
<clause id="HB95EF3B79C2A47FCA75581ED793B3E19"><enum>(i)</enum><text>production history
of the dairy operation; and</text>
</clause><clause id="HEB9A39CC66914FA7BC2AF723A92E2B9F"><enum>(ii)</enum><text display-inline="yes-display-inline">if applicable, the annual production
quantity of the dairy operation for each year in which the margin protection
program has been in effect.</text>
</clause></subparagraph><subparagraph id="HF7EE236891614AA2986AACD5F8122194"><enum>(B)</enum><header>Transfer</header><text>If
the Secretary determines that the seller has sold the entire dairy operation to
the purchaser, the Secretary shall approve the transfer described in
subparagraph (A), and, thereafter, the seller shall have no interest in—</text>
<clause id="H4372C9F403E74DFD829646967BDC593B"><enum>(i)</enum><text>the
production history of the sold dairy operation; or</text>
</clause><clause id="H558404C6FE4E4A97AFA9006FBE3737A6"><enum>(ii)</enum><text display-inline="yes-display-inline">if applicable, the annual production
quantity of the dairy operation.</text>
</clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HAE2B5A4C8E8F4B93A31D711CC3421081"><enum>(2)</enum><header>Transfer by
Lease</header>
<subparagraph id="H0B1E4F933EBA47B1A5CE524671DE433D"><enum>(A)</enum><header>Request for
transfer</header><text display-inline="yes-display-inline">If an existing dairy
producer, as described in section 1412(c)(1), leases an entire dairy operation
to another party, the lessor and lessee may jointly request that the Secretary
transfer to the lessee for the duration of the term of the lease the lessor’s
interest in—</text>
<clause id="H36A7BDBEF138440FAC8DEEA761CEBC6A"><enum>(i)</enum><text>production history
of the dairy operation; and</text>
</clause><clause id="HE4167AA8F41D46F385848F33F8B1751A"><enum>(ii)</enum><text display-inline="yes-display-inline">if applicable, the annual production
quantity of the dairy operation for each year in which the margin protection
program has been in effect.</text>
</clause></subparagraph><subparagraph id="H9A6909399DFF4A89A6DC92F595C8FDA3"><enum>(B)</enum><header>Transfer</header><text display-inline="yes-display-inline">If the Secretary determines that the lessor
has leased the entire dairy operation to the lessee, the Secretary shall
approve the transfer described in subparagraph (A), and, thereafter, the lessor
shall have no interest for the duration of the term of the lease in—</text>
<clause id="H2C03B38F1DF2442694DAE026231511D2"><enum>(i)</enum><text>the
production history of the leased dairy operation; or</text>
</clause><clause id="H4DF6766CB1D8415F89DA741E7F25C0B6"><enum>(ii)</enum><text display-inline="yes-display-inline">if applicable, the annual production
quantity of the dairy operation.</text>
</clause></subparagraph></paragraph><paragraph id="H8AF72A0EADF642E7A4A60FF682C3175B"><enum>(3)</enum><header>Coverage
level</header>
<subparagraph id="H4CA01B4F9DC64DAFA37A35D592080D83"><enum>(A)</enum><header>Basic margin
protection</header><text display-inline="yes-display-inline">A purchaser or
lessee to whom the Secretary transfers a production history or annual
production quantity under this subsection may not obtain a different level of
basic margin protection than the basic margin protection coverage held by the
seller or lessor from whom the transfer was obtained.</text>
</subparagraph><subparagraph id="H91ABDE03951B400295733BD2E10CA787"><enum>(B)</enum><header>Supplemental
margin protection</header><text display-inline="yes-display-inline">A purchaser
or lessee to whom the Secretary transfers a production history or annual
production quantity under this subsection may not obtain a different level of
supplemental margin protection coverage than the supplemental margin protection
coverage held by the seller or lessor from whom the transfer was
obtained.</text>
</subparagraph></paragraph><paragraph id="HB4E6ADB2B1BE4D758E8C1C4E2D1504B0"><enum>(4)</enum><header>New
entrants</header><text display-inline="yes-display-inline">The Secretary may
not transfer the production history or annual production quantity determined
for a dairy producer described in section 1412(c)(2) to another person.</text>
</paragraph></subsection><subsection id="HECE6BB1302354C25A02FBDA6E6818820"><enum>(e)</enum><header>Movement and
transfer of production history or annual production quantity</header>
<paragraph id="HD820FCE50E994ABCAC99D848D92A34B1"><enum>(1)</enum><header>Movement and
transfer authorized</header><text display-inline="yes-display-inline">Subject
to paragraph (2), if a dairy producer moves from one location to another
location, the dairy producer may maintain the production history and annual
production quantity associated with the operation.</text>
</paragraph><paragraph id="H0B9329449FA84EC689E2B51203380CBF"><enum>(2)</enum><header>Notification
requirement</header><text>A dairy producer shall notify the Secretary of any
move of a dairy operation under paragraph (1).</text>
</paragraph><paragraph id="H65BD5C313EA94C44AA8FC0D7F68A74B9"><enum>(3)</enum><header>Subsequent
occupation of vacated location</header><text display-inline="yes-display-inline">A party subsequently occupying a dairy
operation location vacated as described in paragraph (1) shall have no interest
in the production history or annual production quantity previously associated
with the operation at such location.</text>
</paragraph></subsection></section><section id="H7B93F80699454942B492E299D4A486EF"><enum>1414.</enum><header>Basic margin
protection</header>
<subsection id="H33CD75EA6EA64FCBBA7097B21D854EA2"><enum>(a)</enum><header>Eligibility</header><text display-inline="yes-display-inline">All participating dairy producers are
eligible to receive basic margin protection under the margin protection
program.</text>
</subsection><subsection id="H030BE90DB77747ECB03C286E6EEC8253"><enum>(b)</enum><header>Payment
threshold</header><text display-inline="yes-display-inline">Participating dairy
producers shall receive a basic margin protection payment whenever the average
actual dairy producer margin for a consecutive two-month period is less than
$4.00 per hundredweight of milk.</text>
</subsection><subsection id="H2BD47FA1705343589DF74B6D6EE3B309"><enum>(c)</enum><header>Basic margin
protection payment</header>
<paragraph id="H60CF34F91A024688B1C16D996F337B93"><enum>(1)</enum><header>Payment
required</header><text display-inline="yes-display-inline">The Secretary shall
make a basic margin protection payment to each participating dairy producer for
a consecutive two-month period whenever such a payment is required by
subsection (b) for that period.</text>
</paragraph><paragraph id="HBE930BA5421540AEBB56A3FAF1F99792"><enum>(2)</enum><header>Amount of
payment</header><text display-inline="yes-display-inline">The basic margin
protection payment for the dairy operation of a participating dairy producer
for a consecutive two-month period shall be determined as follows:</text>
<subparagraph id="H417D517ABB944CBDBBB074BA9ED78E7C"><enum>(A)</enum><text>The Secretary
shall calculate the difference between the average actual dairy producer margin
for the consecutive two-month period and $4.00, except that, if the difference
is more than $4.00, the Secretary shall use $4.00.</text>
</subparagraph><subparagraph id="H9EE3F604B50944EE8AEA91EFA0AEE8AB"><enum>(B)</enum><text display-inline="yes-display-inline">The Secretary shall multiply the amount
under subparagraph (A) by of the lesser of the following:</text>
<clause id="H6EB2A196A92D4679A7399FD98386F4B4"><enum>(i)</enum><text>80
percent of the production history of the dairy producer, divided by six.</text>
</clause><clause id="HC4F472EB39694D3FA93F77E70EBBC72A"><enum>(ii)</enum><text>The
actual amount of milk marketed by the dairy operation of the dairy producer
during the consecutive two-month period.</text>
</clause></subparagraph></paragraph></subsection></section><section id="HFD60FE33EB4E4EAAB96A7F456FF2FEB2"><enum>1415.</enum><header>Supplemental
margin protection</header>
<subsection id="H09A816339EAF433A8489A8D792F418CC"><enum>(a)</enum><header>Election of
supplemental margin protection</header><text display-inline="yes-display-inline">At the time of the registration of a dairy
producer in the margin protection program under section 1412, the dairy
producer may purchase supplemental margin protection to protect a higher level
of the income of a participating dairy producer than the income level
guaranteed by basic margin protection under section 1414.</text>
</subsection><subsection id="H457A72DBD0044B589C6D452C7532F663"><enum>(b)</enum><header>Selection of
payment threshold</header><text display-inline="yes-display-inline">A
participating dairy producer purchasing supplemental margin protection shall
elect a coverage level that is higher, in any increment of $0.50, than the
payment threshold for basic margin protection specified in section 1414(b), but
not to exceed $8.00.</text>
</subsection><subsection id="H8C32FA0488114EA3B421E83D447DD8DD"><enum>(c)</enum><header>Selection of
coverage percentage</header><text display-inline="yes-display-inline">A
participating dairy producer purchasing supplemental margin protection shall
elect a percentage of coverage, equal to not more than 90 percent nor less than
25 percent, of—</text>
<paragraph display-inline="no-display-inline" id="H86B98FA65E10466F9C8885AFAB19C480"><enum>(1)</enum><text display-inline="yes-display-inline">the production history of the dairy
operation of the participating dairy producer; or</text>
</paragraph><paragraph id="H9E6327E9FE00471593B6EE8688FF5541"><enum>(2)</enum><text display-inline="yes-display-inline">if the participating dairy producer elects
the growth option under subsection (d)—</text>
<subparagraph id="H4A22EE93EA6D48C98A3EFD26400B73AD"><enum>(A)</enum><text display-inline="yes-display-inline">the production history of the dairy
operation of the dairy producer, to be used for the calendar year during which
the dairy producer registers for participation in the margin protection
program; and</text>
</subparagraph><subparagraph id="H57981D3333874E65A3583CF3E9DAAAED"><enum>(B)</enum><text>for subsequent
calendar years in which the margin protection program is in effect, the greater
of—</text>
<clause id="HBCE7C30848194D0F9356AC9F174361D1"><enum>(i)</enum><text display-inline="yes-display-inline">the production history of the dairy
operation of the dairy producer; or</text>
</clause><clause id="H59132AB109AF4865AE4F7597043BA704"><enum>(ii)</enum><text display-inline="yes-display-inline">the highest annual production quantity of
the dairy operation of the dairy producer during any previous calendar year in
which the margin protection program was in effect.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HCBCCDAE061574C46A761735FA9CF3D0E"><enum>(d)</enum><header>Availability of
growth option</header><text display-inline="yes-display-inline">When a dairy
producer purchases supplemental margin protection, the dairy producer may elect
a growth option that authorizes the use of the annual production quantity of
the dairy operation of the dairy producer, in lieu of production history, as
provided in subsection (c)(2) to determine supplemental margin protection
payments for the dairy producer under subsection (h).</text>
</subsection><subsection id="H70218DF23C814FE797F0FCFA5D3BA26F"><enum>(e)</enum><header>Producer
Premiums</header>
<paragraph id="HC45FB8ED27DC4A1B982672B8B590687B"><enum>(1)</enum><header>Premiums
required</header><text display-inline="yes-display-inline">A participating
dairy producer that purchases supplemental margin protection shall pay an
annual premium equal to the product obtained by multiplying—</text>
<subparagraph id="H01D24F2E78BA4C4C879DE73459CFDFB2"><enum>(A)</enum><text>the percentage
selected by the dairy producer under subsection (c);</text>
</subparagraph><subparagraph id="H7CCF1D0AF0954C918CD045C523D1B158"><enum>(B)</enum><text>the production
history or annual production quantity applicable to the dairy producer under
such subsection; and</text>
</subparagraph><subparagraph id="HB53327E66876417D94D43C1BCB6B1A69"><enum>(C)</enum><text>the premium per
hundredweight of milk, as follows:</text>
<table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.0" table-template-name="Generic: 2 text, even cols" table-type="">
<tgroup cols="2" grid-typeface="1.1" no-carding="1" rowsep="0" thead-tbody-ldg-size="10.10.12"><colspec align="center" coldef="fig" colname="column1" colwidth="106pts" min-data-value="19" rowsep="0"></colspec><colspec align="center" coldef="fig" colname="column2" colwidth="106pts" min-data-value="19" rowsep="0"></colspec>
<thead>
<row><entry align="center" colname="column1" morerows="0" namest="column1" rowsep="1">Coverage Level</entry><entry align="center" colname="column2" morerows="0" namest="column2" rowsep="1">Premium per Cwt.</entry>
</row>
</thead>
<tbody>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$4.50</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.015</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$5.00</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.036</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$5.50</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.081</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$6.00</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.155</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$6.50</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.230</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$7.00</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.434</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$7.50</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.590</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">$8.00</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">$0.922.</entry>
</row>
</tbody>
</tgroup>
</table>
</subparagraph></paragraph><paragraph id="H642DB458F04B425889B7853C15428EE2"><enum>(2)</enum><header>Time for
payment</header>
<subparagraph id="H10FE382E24294B46A75F3A7099A69E43"><enum>(A)</enum><header>First
year</header><text display-inline="yes-display-inline">As soon as practicable
after a dairy producer registers to participate in the margin protection
program and purchases supplemental margin protection, the dairy producer shall
pay the premium determined under paragraph (1) for the dairy producer for the
first calendar year of such supplemental margin protection.</text>
</subparagraph><subparagraph id="HAE84AD37F1B844FCB79B74BF2BDF5FC5"><enum>(B)</enum><header>Subsequent
years</header><text display-inline="yes-display-inline">When the dairy producer
first purchases supplemental margin protection, the dairy producer shall also
elect the method by which the dairy producer will pay premiums under this
subsection for subsequent years in accordance with one of the following
schedules:</text>
<clause id="H33EF424A3C774E72A6FF3E6A35DD6E55"><enum>(i)</enum><header>Single annual
Payment</header><text display-inline="yes-display-inline">The participating
dairy producer may elect to pay 100 percent of the annual premium determined
under paragraph (1) for the dairy producer for a calendar year not later than
January 15 of the calendar year.</text>
</clause><clause id="HFADAA0B97EB84DD5A06C008F66636570"><enum>(ii)</enum><header>Semi-annual
Payment</header><text display-inline="yes-display-inline">The participating
dairy producer may elect to pay 50 percent of the annual premium determined
under paragraph (1) for the dairy producer for a calendar year not later than
January 15 of the calendar year and the remaining 50 percent of the premium not
later than June 15 of the calendar year.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H8BD903BADE674A0D910B09F2AD95A939"><enum>(f)</enum><header>Producer’s
Premium Obligations</header>
<paragraph id="H2322B18D2CE347B99A52D1B130E7B908"><enum>(1)</enum><header>Pro-ration of
first year premium</header><text>A participating dairy producer that purchases
supplemental margin protection after initial registration in the margin
protection program shall pay a pro-rated premium for the first calendar year
based on the date on which the producer purchases the coverage.</text>
</paragraph><paragraph id="H445EEBE98575483682D7AFD94134C735"><enum>(2)</enum><header>Subsequent
premiums</header><text>Other than as provided in paragraph (1), the annual
premium for a participating dairy producer shall be determined under subsection
(e) for each year in which the margin protection program is in effect.</text>
</paragraph><paragraph id="HE31BCF4882C742098F0A0E8A8B9DF812"><enum>(3)</enum><header>Legal
obligation</header><text>A participating dairy producer that purchases
supplemental margin protection shall be legally obligated to pay the applicable
premiums for the entire period of the margin protection program (as provided in
the payment schedule elected under subsection (e)(2)), and may not opt out of
the margin protection program, except—</text>
<subparagraph id="HEEF64C78A8EA4F06914BC5D9D903A537"><enum>(A)</enum><text>if the dairy
producer dies, the estate of the deceased may cancel the supplemental margin
protection and shall not be responsible for any further premium payments;
or</text>
</subparagraph><subparagraph id="HDEB3FBCFC7514DD885AB169075805D6E"><enum>(B)</enum><text display-inline="yes-display-inline">if the dairy producer retires, the producer
may request that Secretary cancel the supplemental margin protection if the
producer has terminated the dairy operation entirely and certifies under oath
that the producer will not be actively engaged in any dairy operation for at
least the next seven years.</text>
</subparagraph></paragraph></subsection><subsection id="H2A9D62CC18904FC4805C572D5A706F9D"><enum>(g)</enum><header>Supplemental
Payment threshold</header><text display-inline="yes-display-inline">A
participating dairy producer with supplemental margin protection shall receive
a supplemental margin protection payment whenever the average actual dairy
producer margin for a consecutive two-month period is less than the coverage
level threshold selected by the dairy producer under subsection (b).</text>
</subsection><subsection id="HEEDBD91977424C25B49A7AAC4519BADF"><enum>(h)</enum><header>Supplemental
margin protection payments</header>
<paragraph id="HEA1411FBCB334DFAB0DE303EBC877611"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The supplemental
margin protection payment for a participating dairy producer is in addition to
the basic margin protection payment.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H3DFC5F6C99F84D79A582B249EA7F61F7"><enum>(2)</enum><header>Amount of
payment</header><text display-inline="yes-display-inline">The supplemental
margin protection payment for the dairy operation of a participating dairy
producer shall be determined as follows:</text>
<subparagraph id="HB9EFCAAEE3F64A9BB33E140D88483B9D"><enum>(A)</enum><text display-inline="yes-display-inline">The Secretary shall calculate the
difference between the coverage level threshold selected by the dairy producer
under subsection (b) and the greater of—</text>
<clause id="H5AA4CE272B1D4ECB9FED5A916834FE11"><enum>(i)</enum><text>the
average actual dairy producer margin for the consecutive two-month period;
or</text>
</clause><clause id="H4DA74CEE195F49459F0FB719DDC48D81"><enum>(ii)</enum><text>$4.00.</text>
</clause></subparagraph><subparagraph id="H4913A5540B924723947A018F62EA1AE1"><enum>(B)</enum><text display-inline="yes-display-inline">The amount determined under subparagraph
(A) shall be multiplied by the percentage selected by the dairy producer under
subsection (c) and by the lesser of the following:</text>
<clause id="H31335ADFA7B744DE81475B473FA6A585"><enum>(i)</enum><text display-inline="yes-display-inline">The production history or annual production
quantity applicable to the producer under subsection (c), divided by
six.</text>
</clause><clause id="H998610C8FF04455CA4C34CD3ED38881F"><enum>(ii)</enum><text>The
actual amount of milk marketed by the dairy operation of the dairy producer
during the consecutive two-month period.</text>
</clause></subparagraph></paragraph></subsection></section><section id="HD969542D42CC43949831210E50A5937E"><enum>1416.</enum><header>Effect of
failure to pay administrative fees or premiums</header>
<subsection id="H4CD5D9540E96477DB378F3025A9B2617"><enum>(a)</enum><header>Loss of
benefits</header><text display-inline="yes-display-inline">A participating
dairy producer that fails to pay the required administrative fee under section
1412 or is in arrears on premium payments for supplemental margin protection
under section 1415—</text>
<paragraph id="H9A2D7A9E60CD40B6A792DB3A56BA9C5E"><enum>(1)</enum><text display-inline="yes-display-inline">remains legally obligated to pay the
administrative fee or premiums, as the case may be; and</text>
</paragraph><paragraph id="H309F3C101A5A47A6BCEFE626E9CC01F2"><enum>(2)</enum><text display-inline="yes-display-inline">may not receive basic margin protection
payments or supplemental margin protection payments until the fees or premiums
are fully paid.</text>
</paragraph></subsection><subsection id="H6BC9BCE230944940BEC9F85EC6D53B37"><enum>(b)</enum><header>Enforcement</header><text display-inline="yes-display-inline">The Secretary may take such action as
necessary to collect administrative fees and premium payments for supplemental
margin protection.</text>
</subsection></section><section id="H6C0783DED206418193B832ADE89DE7EC"><enum>1417.</enum><header>No payment
limitations</header><text display-inline="no-display-inline">Notwithstanding
any other provision of law (except section 1416), basic margin protection
payments and supplemental margin protection payments received by a
participating dairy producer shall not be subject to limitations for any
reason.</text>
</section></subpart><subpart id="H5FBB0D571AC54CB1A2C0541B21F8CAE8"><enum>B</enum><header>Dairy Market
Stabilization Program</header>
<section id="HF096557981BE4EBC8DB8DF13DA9C7190"><enum>1431.</enum><header>Establishment
of dairy market stabilization program</header>
<subsection id="H12F9E893AE3146B2ADE184B0F2B59D18"><enum>(a)</enum><header>Program
required; purpose</header><text display-inline="yes-display-inline">The
Secretary shall establish and administer a dairy market stabilization program
applicable to participating dairy producers for the purpose of assisting in
balancing the supply of milk with demand when dairy producers are experiencing
low or negative operating margins.</text>
</subsection><subsection id="H059C123D82FC4EAE9B5491AD94EFCB49"><enum>(b)</enum><header>Election of
stabilization program base calculation method</header>
<paragraph id="H3EE22340D7274E78B325208424E01629"><enum>(1)</enum><header>Deadline for
election</header><text display-inline="yes-display-inline">Not later than
January 15, 2012, each participating dairy producer shall inform the Secretary
of the method by which the stabilization program base for the dairy producer
for 2012 will be calculated under paragraph (3).</text>
</paragraph><paragraph id="H678B962D08BC4C3AA058BFB8AEFAD3FB"><enum>(2)</enum><header>Change in
calculation method</header><text>A participating dairy producer may change the
stabilization program base calculation method to be used for a calendar year by
notifying the Secretary of the change not later than January 15 of that
year.</text>
</paragraph><paragraph id="H51C7182736164F6AB40D5BC546EDC180"><enum>(3)</enum><header>Calculation
methods</header><text>A participating dairy producer may elect either of the
following methods for calculation of the stabilization program base for the
producer:</text>
<subparagraph id="H2E725AFB5B294BD39FF1AD5143CA5BA4"><enum>(A)</enum><text>The volume of the
average monthly milk marketings of the dairy producer for the three months
immediately preceding the announcement by the Secretary that the stabilization
program will become effective.</text>
</subparagraph><subparagraph id="H57F5C18ABE5045D8B315BEB4C5C5DA0E"><enum>(B)</enum><text display-inline="yes-display-inline">The volume of the monthly milk marketings
of the dairy producer for the same month in the preceding year as the month for
which the Secretary has announced the stabilization program will become
effective.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="HB681104EF6364546888D6C442EB13FCF"><enum>(c)</enum><header>Treatment of
multi-Producer operations</header><text display-inline="yes-display-inline">As
provided in section 1412(b)(2), if a dairy operation consists of more than one
dairy producer, all of the dairy producers of the operation shall be treated as
a single participating dairy producer for purposes of operation of the
stabilization program with respect to the producers.</text>
</subsection><subsection display-inline="no-display-inline" id="H4FA8F3988600443BA860B36DE54626DD"><enum>(d)</enum><header>Treatment of
Producers with Multiple dairy Operations</header><text display-inline="yes-display-inline">As provided in section 1412(b)(3), if a
participating dairy producer operates two or more dairy operations, only those
dairy operations of the dairy producer registered under section 1412 shall be
subject to the stabilization program.</text>
</subsection></section><section id="H48FEF3BA627A4E349BCD62BCA8BB6891"><enum>1432.</enum><header>Threshold for
implementation and reduction in dairy producer payments</header>
<subsection id="H1D81DBF573F54AE382142A30039123B2"><enum>(a)</enum><header>When
stabilization program required</header><text display-inline="yes-display-inline">The Secretary shall announce that the
stabilization program is in effect and order reduced payments for any
participating dairy producer that exceeds the applicable percentage of the
producer’s stabilization program base whenever—</text>
<paragraph id="HF6FD45ACFBDE4590BBB390BA2A638AE1"><enum>(1)</enum><text display-inline="yes-display-inline">the actual dairy producer margin has been
$6.00 or less per hundredweight of milk for the immediately preceding two
months; or</text>
</paragraph><paragraph id="H43BDADA409BF43559DA3E36A9B5DAC80"><enum>(2)</enum><text display-inline="yes-display-inline">the actual dairy producer margin has been
$4.00 or less per hundredweight of milk for the immediately preceding
month.</text>
</paragraph></subsection><subsection id="HFCDDD32F7EF9437AABD2ECB1CBE0CC84"><enum>(b)</enum><header>Effective date
for implementation of payment reductions</header><text>Reductions in dairy
producer payments shall commence beginning on the first day of the month
immediately following the announcement by the Secretary under subsection
(a).</text>
</subsection></section><section id="H4D2276B1D9A24EEB9304477670C1FBC4"><enum>1433.</enum><header>Producer milk
marketings information</header>
<subsection id="H74041245768E437EAA2E2551276CB069"><enum>(a)</enum><header>Collection of
milk marketing data</header><text display-inline="yes-display-inline">For each
month during which the stabilization program is in effect, each handler shall
calculate the following:</text>
<paragraph id="HE1BF3EF6947549E88631893894EECDCD"><enum>(1)</enum><text>The volume of milk
marketings the handler has received from each participating dairy producer
during that month.</text>
</paragraph><paragraph id="HD531E502F46B4F16B373E8F666AC8840"><enum>(2)</enum><text display-inline="yes-display-inline">The volume of milk marketings the handler
has received from each participating dairy producer during the same month of
the preceding year.</text>
</paragraph><paragraph id="HBFF7F7998C054618A6B5ED16AF2C26E7"><enum>(3)</enum><text display-inline="yes-display-inline">The volume of milk marketings the handler
has received from each participating dairy producer during each of the three
months preceding the month in which the Secretary makes the announcement that
the stabilization program will be in effect.</text>
</paragraph></subsection><subsection id="H7AF51FB4DFEF41939A966D5D2118DA50"><enum>(b)</enum><header>Effect of
changing handlers</header><text>If a participating dairy producer changes
handlers, the producer shall ensure that milk marketings data required to make
the calculations under subsection (a) is provided to the new handler.</text>
</subsection></section><section id="HE485D664770B4D0E99C7680E1D7F84A8"><enum>1434.</enum><header>Calculation
and collection of reduced dairy producer payments</header>
<subsection id="HF1E67EDF70DF4F01A6D8E7E78044CF3C"><enum>(a)</enum><header>Reduced producer
payments required</header><text display-inline="yes-display-inline">During any
month in which payment reductions are in effect under the stabilization
program, each handler shall reduce payments to each participating dairy
producer from whom the handler receives milk.</text>
</subsection><subsection id="H72CE62622D184EC1BDFC9134F9305D2B"><enum>(b)</enum><header>Reductions based
on actual dairy producer margin</header>
<paragraph id="HB7F5FEAD67D740F79E75F790810F140C"><enum>(1)</enum><header>Reduction
requirement 1</header><text display-inline="yes-display-inline">Unless the
reduction required by paragraph (2) or (3) applies, when the actual dairy
producer margin has been $6.00 or less per hundredweight of milk for two
consecutive months, the handler shall make payments to a participating dairy
producer for a month based on the greater of the following:</text>
<subparagraph id="H80434122DCB347688AC8D62BA4CE5FA6"><enum>(A)</enum><text>98 percent of the
stabilization program base of the dairy producer.</text>
</subparagraph><subparagraph id="H851BDFE2C2164391AD991A1D616FCB00"><enum>(B)</enum><text>94 percent of the
marketings of milk for the month by the producer.</text>
</subparagraph></paragraph><paragraph id="H1475E53AC25C42EAAC1ACEB90BCDB1AC"><enum>(2)</enum><header>Reduction
requirement 2</header><text display-inline="yes-display-inline">Unless the
reduction required by paragraph (3) applies, when the actual dairy producer
margin has been $5.00 or less per hundredweight of milk for two consecutive
months, the handler shall make payments to a participating dairy producer for a
month based on the greater of the following:</text>
<subparagraph id="H36BF9B0C9EED42F6BADF379A9E0FF477"><enum>(A)</enum><text display-inline="yes-display-inline">97 percent of the stabilization program
base of the dairy producer.</text>
</subparagraph><subparagraph id="H81301FCC780944AEA2CFBC340833DB4F"><enum>(B)</enum><text display-inline="yes-display-inline">93 percent of the marketings of milk for
the month by the producer.</text>
</subparagraph></paragraph><paragraph id="HF7DB1EED880047C4BD6EFB6D2F0C821E"><enum>(3)</enum><header>Reduction
requirement 3</header><text display-inline="yes-display-inline">When the actual
dairy producer margin has been $4.00 or less for any one month, the handler
shall make payments to a participating dairy producer for a month based on the
greater of the following:</text>
<subparagraph id="H3152CCCA1A76474DA5EFFCE2AC37A4E0"><enum>(A)</enum><text display-inline="yes-display-inline">96 percent of the stabilization program
base of the dairy producer.</text>
</subparagraph><subparagraph id="H45D52D6AA0C94CE292099CA12485A98F"><enum>(B)</enum><text display-inline="yes-display-inline">92 percent of the marketings of milk for
the month by the producer.</text>
</subparagraph></paragraph></subsection><subsection id="H6AD27AE6E9CB43A782601857869AA915"><enum>(c)</enum><header>Continuation of
reductions</header><text>The largest level of payment reduction required under
paragraph (1), (2), or (3) of subsection (b) shall be continued for each month
until the Secretary suspends the stabilization program and terminates payment
reductions in accordance with section 1436.</text>
</subsection><subsection id="H2D2CA10B241C4AE3879B695B57A90EDA"><enum>(d)</enum><header>Payment
reduction exception</header><text display-inline="yes-display-inline">Notwithstanding any preceding subsection of
this section, a handler shall make no payment reductions for a dairy producer
for a month if the producer’s milk marketings for the month are equal to or
less than the percentage of the stabilization program base applicable to the
producer under paragraph (1), (2), or (3) of subsection (b).</text>
</subsection></section><section id="HEC2A0DE604E54C328E64E16750183E3D"><enum>1435.</enum><header>Remitting
monies to Commodity Credit Corporation</header>
<subsection id="H3ED1C1F79B9C409EB89869EEBFBEB825"><enum>(a)</enum><header>Remitting
monies</header><text display-inline="yes-display-inline">As soon as practicable
after the end of each month during which payment reductions are in effect under
the stabilization program, each handler shall remit to the Commodity Credit
Corporation an amount equal to the amount by which payments to participating
dairy producers are reduced by the handler under section 1434.</text>
</subsection><subsection id="H9BB3349E084247A6A8CA26F718477525"><enum>(b)</enum><header>Availability of
monies</header><text display-inline="yes-display-inline">As soon as practicable
after receipt of monies under subsection (a), the Commodity Credit Corporation
shall make the monies available to the board of directors under section
1438.</text>
</subsection></section><section display-inline="no-display-inline" id="HA91F03A04E404D8C8694362E76CBCC2E" section-type="subsequent-section"><enum>1436.</enum><header>Suspension of
reduced payment requirement</header>
<subsection id="H4FA1006E9E4B43AE9A85653852CAA52C"><enum>(a)</enum><header>Suspension
thresholds</header><text display-inline="yes-display-inline">The Secretary
shall suspend the stabilization program whenever the Secretary determines
that—</text>
<paragraph id="H99E3C010EABC4BA18CDE2C58C89DDD1B"><enum>(1)</enum><text display-inline="yes-display-inline">the actual dairy producer margin is greater
than $6.00 per hundredweight of milk for 2 consecutive months;</text>
</paragraph><paragraph id="H8A7CDAC1DC684BD8AF8835B1FF0A48F2"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HDC6F92F4AFB040FEA390F9F2A866BF74"><enum>(A)</enum><text>the price for cheddar
cheese or non-fat dry milk in the United States, as determined by the National
Agricultural Statistics Service, is not less than 97 percent of the world price
of cheddar cheese or skim milk powder in Oceania, as determined by the
Secretary, for 2 consecutive months; and</text>
</subparagraph><subparagraph id="H6C072CBF46DB4BA4B70DF3A8DADD15A4" indent="up1"><enum>(B)</enum><text>the dairy producer margin is equal to
or less than $6 for the same 2 consecutive months;</text>
</subparagraph></paragraph><paragraph id="HEF5038E4C95747368F49CE5B4B90EDA5"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H2EE301577A5D46C1AEAE23AC423D89A3"><enum>(A)</enum><text>the price for cheddar
cheese or non-fat dry milk in the United States, as determined by the National
Agricultural Statistics Service, is more than 3 percent higher than the world
price of cheddar cheese or skim milk powder in Oceania, as determined by the
Secretary, for 2 consecutive months; and</text>
</subparagraph><subparagraph id="H256AC7C10E0B4DD2A37805398ECF4B16" indent="up1"><enum>(B)</enum><text>the dairy producer margin is equal to
or less than $5 for the same 2 consecutive months; or</text>
</subparagraph></paragraph><paragraph id="HE9DA6A54B7FB4066BFB07C1EC4E35E57"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HE291B16A520843D5B718E8BB7D91B230"><enum>(A)</enum><text>the price for cheddar
cheese or non-fat dry milk in the United States, as determined by the National
Agricultural Statistics Service, is more than 6 percent higher than the world
price of cheddar cheese or skim milk powder in Oceania, as determined by the
Secretary, for 2 consecutive months; and</text>
</subparagraph><subparagraph id="HD0223E38D23541A6B0530A18F616D30D" indent="up1"><enum>(B)</enum><text>the dairy producer margin is equal to
or less than $4 for the same 2 consecutive months.</text>
</subparagraph></paragraph></subsection><subsection id="HDA9F3FA4B8784942BB324C4F755996D5"><enum>(b)</enum><header>Implementation
by handlers</header><text display-inline="yes-display-inline">Handlers shall
cease reducing payments to participating dairy producers under the
stabilization program upon receiving notice of the suspension of the
stabilization program from the Secretary.</text>
</subsection></section><section id="HD8D24FD0D55F43F880ED55117D55E5A4"><enum>1437.</enum><header>Audit
requirements</header>
<subsection id="HD6E6511E90B348E5881F57EE2D1861C9"><enum>(a)</enum><header>Audits of
producer and handler compliance</header>
<paragraph id="HDC445181622744368B910E1FCEDA5276"><enum>(1)</enum><header>Audits
authorized</header><text display-inline="yes-display-inline">If determined by
the Secretary to be necessary to ensure compliance by participating dairy
producers and handlers with the stabilization program, the Secretary may
conduct periodic audits of participating dairy producers and handlers.</text>
</paragraph><paragraph id="H2DE7FACC4FED40139F653B0AE791044D"><enum>(2)</enum><header>Sample of dairy
producers</header><text>Any audit conducted under this subsection shall
include, at a minimum, investigation of a statistically valid and random sample
of participating dairy producers.</text>
</paragraph></subsection><subsection id="H5E87433D841342F2A75141E5D2D93A1F"><enum>(b)</enum><header>Audit by
inspector general</header>
<paragraph id="H36FE397ECB7E4560BDCDCC38A48F10D6"><enum>(1)</enum><header>Audit
required</header><text display-inline="yes-display-inline">At the end of the
second year of operation of the stabilization program, the Inspector General of
the Department of Agriculture shall audit and evaluate the effectiveness of the
stabilization program. In conducting the audit and evaluation, the Inspector
General shall include the use of established dairy economic models to ascertain
the effectiveness, operation, and administration of the program.</text>
</paragraph><paragraph id="HB9076D987FD74683BB7E95F4C4996CE3"><enum>(2)</enum><header>Submission of
results</header><text>The Inspector General shall submit the results of the
audit and evaluation conducted under paragraph (1) to the Secretary, who shall
make such recommendations to Congress as the Secretary considers appropriate
regarding the stabilization program.</text>
</paragraph></subsection></section><section commented="no" id="H3D64BA7AE9BF44F2B7677560B1FF2A67"><enum>1438.</enum><header>Board of
directors</header>
<subsection commented="no" id="HA60E41A9FFCF4356BBD88A3B27526BBE"><enum>(a)</enum><header>Establishment;
purpose</header><text display-inline="yes-display-inline">The Secretary shall
establish a board of directors for the stabilization program for the purpose
of—</text>
<paragraph commented="no" id="H9D458542723448AABE88BD546DFB9C1F"><enum>(1)</enum><text>administering the
monies made available to the board of directors under section 1435; and</text>
</paragraph><paragraph commented="no" id="H555D5080ABB7485AAED3007563374418"><enum>(2)</enum><text>determining the
most effective use of such monies.</text>
</paragraph></subsection><subsection commented="no" id="H505B102903EA444CBD8C352374F67161"><enum>(b)</enum><header>Appointment of
directors</header>
<paragraph commented="no" id="HCEA0B308FE974E95BB9370FF6363F142"><enum>(1)</enum><header>Number and
qualifications</header><text display-inline="yes-display-inline">The Secretary
shall appoint 15 members to serve on the board of directors, who shall be
representative of the United States dairy producer community, taking into
account geographical diversity, cooperative membership, and volumes of milk
produced in various States and regions.</text>
</paragraph><paragraph commented="no" id="H8370EB33D75F4A95929DDB15895C2914"><enum>(2)</enum><header>Reimbursement of
expenses</header><text display-inline="yes-display-inline">Monies made
available to the board of directors under section 1435 may be used to reimburse
a member of the board of directors for reasonable and appropriate costs
incurred by the member to serve on the board of directors.</text>
</paragraph></subsection><subsection commented="no" id="HD812E42EA9EB4973A876394521E0713D"><enum>(c)</enum><header>Decisionmaking</header><text>The
board of directors shall reach decisions by an affirmative vote of
<fraction>2/3</fraction> of its members.</text>
</subsection><subsection commented="no" id="H77542D347C94486A8D00000BD3F3F376"><enum>(d)</enum><header>Removal of dairy
products and expansion of demand</header>
<paragraph commented="no" id="H2DDBE3A60F864C0E882D962BA7BDB94F"><enum>(1)</enum><header>Spending
authority</header><text display-inline="yes-display-inline">The board of
directors shall have the authority to use monies made available to the board of
directors under section 1435—</text>
<subparagraph commented="no" id="H32ADA88187944D57992D41A8E6FDDEEC"><enum>(A)</enum><text>to purchase dairy
products through commercial sources for donation to food banks and other food
programs that the Board determines appropriate, within three months of
collecting the funds; and</text>
</subparagraph><subparagraph commented="no" id="H36B64BF5A7B34B3C9BAF1166C43B3F0E"><enum>(B)</enum><text>to expand
consumption and build demand for dairy products.</text>
</subparagraph></paragraph><paragraph commented="no" id="HB2A4F5D11C5A4A1888A76C309E16CA8F"><enum>(2)</enum><header>No duplication
of effort</header><text display-inline="yes-display-inline">The board of
directors shall ensure that projects supported under paragraph (1) are
compatible with, and do not duplicate, programs supported by the dairy research
and promotion activities conducted under the Dairy Production Stabilization Act
of 1983 (7 U.S.C. 4501 et seq.).</text>
</paragraph><paragraph commented="no" id="HDF4E32B2D06A4CDA92713ADD78BE31D3"><enum>(3)</enum><header>Management
contract</header><text>The board of directors may enter into a contract with a
managing entity to carry out this subsection.</text>
</paragraph></subsection><subsection id="H0AF9A52D7D054FB289001542C7D39975"><enum>(e)</enum><header>Accounting and
reporting requirement</header>
<paragraph id="H6B0FC7D613DF47068254C82215F6FF15"><enum>(1)</enum><header>Accounting</header><text display-inline="yes-display-inline">The board of directors shall keep an
accurate account of all monies made available to the board of directors under
section 1435.</text>
</paragraph><paragraph id="H81B61C498DC944B4AB1CE5B4857D2C1D"><enum>(2)</enum><header>Reporting</header><text display-inline="yes-display-inline">Not later than December 31 of each year
that the stabilization program is in effect, the board of directors shall
provide to the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate a report that
provides an accurate accounting of the monies received by the board of
directors during that year and all expenditures made by the board of directors
during that year.</text>
</paragraph></subsection></section></subpart><subpart id="H14FC44A2C0C24A028488803F0F382413"><enum>C</enum><header>Commodity Credit
Corporation</header>
<section display-inline="no-display-inline" id="HF8803258DC81433FA1787D9B0F2894C2" section-type="subsequent-section"><enum>1451.</enum><header>Use of Commodity
Credit Corporation</header><text display-inline="no-display-inline">The
Secretary shall use the funds, facilities, and the authorities of the Commodity
Credit Corporation to carry out this part.</text>
</section></subpart><subpart id="H22ED4FBF09084D2E8ADCA74E5D6AD098"><enum>D</enum><header>Duration</header>
<section id="H8A207F90ACE94E6CB0070C032EDC28BC"><enum>1461.</enum><header>Duration</header><text display-inline="no-display-inline">The Secretary shall conduct the margin
protection program and the stabilization program during the period beginning on
January 1, 2012, and ending on December 31, 2017.</text>
</section></subpart></part><part id="HBB5B23FA6ADD4E90A6FB94F182C4230E"><enum>II</enum><header>Federal milk
marketing order reform</header>
<section id="HA7AA486971C641DC890978654D23BCC0"><enum>1471.</enum><header>Required
amendments to Federal milk marketing orders</header>
<subsection id="HA2205C143F284251B8973D28EDAA642A"><enum>(a)</enum><header>Amendments
required</header>
<paragraph commented="no" id="H137F073DB82245149AACF26C1DF1E2F0"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary of
Agriculture shall amend each Federal milk marketing 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 (in this part
referred to as a <quote>milk marketing order</quote>), as required by this
section.</text>
</paragraph><paragraph id="H3B666F64C9784EAA94D0B285C1FA1DAD"><enum>(2)</enum><header>Relation to
other laws</header><text display-inline="yes-display-inline">Except as provided
in section 1472, the Secretary shall execute the amendments required by this
section without regard to any provision of section 8c of the Agricultural
Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, as in effect on the day before the date of the
enactment of this Act.</text>
</paragraph></subsection><subsection id="H4A71DB5E1BEF4B8FB8FF0CD20C6D3B58"><enum>(b)</enum><header>Use of
end-Product price formulas</header><text display-inline="yes-display-inline">The Secretary shall eliminate the use of
end-product price formulas for setting prices for Class III milk, and instead
use a competitive price for setting prices for Class III milk.</text>
</subsection><subsection id="H60AA23A6C0AB4D2DA7D513B828218A76"><enum>(c)</enum><header>Administrative
authority</header><text display-inline="yes-display-inline">In addition to and
notwithstanding the authority provided under section 8d of the Agricultural
Adjustment Act (7 U.S.C. 608d), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, the Secretary may—</text>
<paragraph id="H554D98622E0645F6B4064B538049C1A8"><enum>(1)</enum><text>require handlers
to report, maintain, and make available all information and records as the
Secretary considers necessary for the administration of any milk marketing
order; and</text>
</paragraph><paragraph id="HF21F1D4D2F164BD985D13F099ED6B472"><enum>(2)</enum><text>adopt only such
conforming amendments to milk marketing orders as the Secretary determines to
be necessary to implement the amendments required by this section.</text>
</paragraph></subsection></section><section id="H6702038D10C141368978951D46AF4BBD"><enum>1472.</enum><header>Amendment
process</header>
<subsection id="HCD05F602F11A416982C9FE9EE3C6EBEB"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The amendments to
milk marketing orders required to be made by section 1471 shall be subject to
the provisions of sections 8c(17) and 8c(19) of the Agricultural Adjustment Act
(7 U.S.C. 608c(17) and (19)), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, except as follows:</text>
<paragraph id="H7CF7073F578640339BB9D0465A402A2F"><enum>(1)</enum><header>Notice of final
decision on proposed amendments</header><text display-inline="yes-display-inline">Not later than 270 days after the date of
the enactment of this Act, the Secretary of Agriculture shall publish in the
Federal Register notice of a final decision on the proposed amendments to be
made to milk marketing orders in order to comply with the requirements of
section 1471.</text>
</paragraph><paragraph id="HBD9353D6E37044F4923D964637D13875"><enum>(2)</enum><header>Producer
referendum</header>
<subparagraph id="H563C116CD72B454FB8D86E95107F0015"><enum>(A)</enum><header>Referendum
required</header><text display-inline="yes-display-inline">As soon as
practicable after publication of the final decision on the proposed amendments
under paragraph (1), the Secretary shall conduct a producer referendum
regarding the final decision on the proposed amendments.</text>
</subparagraph><subparagraph id="H27B57E43C27240E9AF42CC72369F422A"><enum>(B)</enum><header>Terms of
referendum; exceptions</header><text display-inline="yes-display-inline">The
producer referendum shall be conducted in the manner provided by section 8c(19)
of the Agricultural Adjustment Act (7 U.S.C. 608c(19)), reenacted with
amendments by the Agricultural Marketing Agreement Act of 1937, except
that—</text>
<clause id="H4BED4F182DB34AA69E53C8C69660E7A7"><enum>(i)</enum><text>the
referendum shall be a single referendum upon which approval or failure of the
proposed amendments to all milk marketing orders shall depend; and</text>
</clause><clause id="H2779985C59BC46D7BE59E57FFD4EA27C"><enum>(ii)</enum><text>the
proposed amendments shall require approval by <fraction>1/2</fraction> of
participating producers or by volume of production (rather than
<fraction>2/3</fraction>) in order for the referendum to pass and the proposed
amendments to take effect.</text>
</clause></subparagraph><subparagraph id="H34E15A92C3C9463C9603911DDF9EA3A1"><enum>(C)</enum><header>Effect of
failure</header><text>If the referendum fails, the milk marketing orders shall
remain in force as in effect before the proposed amendments were
published.</text>
</subparagraph></paragraph></subsection><subsection id="HCB66AF58B15B4AB9A1039E132E94DE86"><enum>(b)</enum><header>Effect of Court
Order</header><text display-inline="yes-display-inline">In the event that the
Secretary is enjoined or otherwise restrained by a court order from executing
the amendments to milk marketing orders required by section 1471, the length of
time for which that injunction or other restraining order is effective shall be
added to any time limitation in effect under paragraph (1) or (2) of subsection
(a), thereby extending those time limitations by a period of time equal to the
period of time for which the injunction or other restraining order is in
effect.</text>
</subsection><subsection id="HC6B23EF501B841259585DC439AD3B0DF"><enum>(c)</enum><header>Relation to
other amendment authority</header><text display-inline="yes-display-inline">Nothing in this part affects the authority
of the Secretary to subsequently amend milk marketing orders, or the ability of
producers or other persons to seek such amendments, in accordance with the
rulemaking process provided by section 8c(17) of the Agricultural Adjustment
Act (7 U.S.C. 608c(17)), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937.</text>
</subsection></section><section id="H75D64100A4354626A1B23AC44DF6425C"><enum>1473.</enum><header>Development of
effective balancing programs for milk markets</header>
<subsection id="H04F91E3ED68D4CD88A46B90D58C5E149"><enum>(a)</enum><header>Advanced notice
of proposed rulemaking</header><text>Not later than 90 days after the enactment
of this Act, the Secretary of Agriculture shall publish in the Federal Register
an Advanced Notice of Proposed Rulemaking seeking public comment on, and
proposals recommending, effective programs that address the issues of the costs
of balancing milk markets, including the use of inter- and intra-marketing
transportation credits. The Secretary shall solicit comments and proposals
that—</text>
<paragraph id="H80218C2A896B4CB39543DCB582B20F3A"><enum>(1)</enum><text>address the
market’s balancing needs;</text>
</paragraph><paragraph id="H2B71DFA66F4D4C269EB31C60BA689F22"><enum>(2)</enum><text>target support to
those producers and handlers who provide balancing services; and</text>
</paragraph><paragraph id="H9615E81E1217491399EE287C47A5A690"><enum>(3)</enum><text>provide
compensation that is in line with the costs of providing the services and with
the benefits to the market of the services.</text>
</paragraph></subsection><subsection id="H5483DA52D97541B099B69AF7BD8033E0"><enum>(b)</enum><header>Timeliness of
rulemaking</header><text>Not later than one year after the date of the
enactment of this Act, the Secretary shall—</text>
<paragraph id="HF6DF4E3989D2427ABFD1E5431AFA6D50"><enum>(1)</enum><text display-inline="yes-display-inline">initiate formal rulemaking (by publishing
in the Federal Register a hearing notice) in response to the public comments
received under subsection (a); or</text>
</paragraph><paragraph id="H4F6A4A147FB84438BC4F66A23B98AF5E"><enum>(2)</enum><text>publish notice of
the reasons that such a rulemaking is not to be initiated.</text>
</paragraph></subsection></section><section id="HE417B20F5A5548FDBD4F2C191F6C8E3E"><enum>1474.</enum><header>Study on
elimination of milk marketing orders</header>
<subsection id="H85AEDAC0B1A841969DE9B608625FD146"><enum>(a)</enum><header>In
general</header><text>The Secretary shall study the effects on the marketplace
associated with the elimination of the Federal milk marketing orders.</text>
</subsection><subsection id="HBBF5CE9BD47C47ACABF6E0809BAD43E8"><enum>(b)</enum><header>Requirements</header><text>The
study under this section shall, at a minimum, address—</text>
<paragraph id="H192153C3FD90498FB338844516BF5AEA"><enum>(1)</enum><text>the regional
differences in milk prices that would result from the elimination of the
Federal milk marketing orders, compared to the regional differences derived
from the order system in effect on the day before the date of enactment of this
Act;</text>
</paragraph><paragraph id="HA89251F65AE24E6FB71F59CC48766F88"><enum>(2)</enum><text>shifts in milk
production patterns and product use that would derive from the
elimination;</text>
</paragraph><paragraph id="H7B12F5BE8EF3446AB71855BADB57791B"><enum>(3)</enum><text>an examination of
changes in the flow of milk and what would be required for milk to move from
surplus to deficit regions in the absence of the orders;</text>
</paragraph><paragraph id="H45635D0665B54027A0FAA8FCB1C07875"><enum>(4)</enum><text>the potential for
any premiums to be paid for milk in fluid use form and what, if any, regional
differences in those premiums might exist;</text>
</paragraph><paragraph id="H651E77BD8AB843B8A22652AFD66297EA"><enum>(5)</enum><text>the potential
impact on export markets; and</text>
</paragraph><paragraph id="H5A0678EA6E8D4392A9AD6CA7F219569D"><enum>(6)</enum><text>potential changes
in market price volatility.</text>
</paragraph></subsection><subsection id="H816286670CC149D8BDDA75EB524AC70D"><enum>(c)</enum><header>Report</header><text>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 on the results of the study conducted under this section, including any
recommendations.</text>
</subsection></section></part><part id="H9302BFF7FA004815B2E5C3A5AE102B7E"><enum>III</enum><header>Repeal of
superseded provisions</header>
<section id="H85B389FC33A34957AC5E5909962F4D0D"><enum>1481.</enum><header>Repeal of
dairy product price support and milk income loss contract programs</header>
<subsection id="HFA14918FA5524D5D87C7B20BDF9CC61E"><enum>(a)</enum><header>Repeal of dairy
product price support program</header><text>Section 1501 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8771) is repealed.</text>
</subsection><subsection id="HD65E0A6A89F2402B8CD3CE24317FCBC6"><enum>(b)</enum><header>Repeal of milk
income loss contract program</header><text>Section 1506 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8773) is repealed.</text>
</subsection></section><section id="HCE294F7513C447FEA6F144054D14733A"><enum>1482.</enum><header>Repeal of
permanent price support authority for milk</header>
<subsection id="H8C945C6897F64B1D96B3220D31DB3D08"><enum>(a)</enum><header>Repeal</header>
<paragraph id="H9735CC01A4574585899E166B82EFFDC9"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 201 of the
Agricultural Act of 1949 (7 U.S.C. 1446) is amended—</text>
<subparagraph id="H271F6FE39CCA4517AC49FCEF928FB100"><enum>(A)</enum><text>in subsection (a)
(as amended by section 1302(c)(3)), by striking <quote>honey, and milk,</quote>
and inserting <quote>and honey</quote>; and</text>
</subparagraph><subparagraph id="H1DF840BE80E54270B071E911BA4AEED8"><enum>(B)</enum><text>by striking
subsections (c) and (d).</text>
</subparagraph></paragraph><paragraph id="H7A0A5CA6F71943E6810AEB9055C09A60"><enum>(2)</enum><header>Conforming
amendments</header><text>Section 256(j) of the Balanced Budget and Emergency
Deficit Control Act of 1985 (2 U.S.C. 906(j)) is amended—</text>
<subparagraph id="H410AD902B2424313844FD6A1DE31AD9A"><enum>(A)</enum><text>by striking
paragraph (5); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCAD15EB869914968ADA2E0970D136E9F"><enum>(B)</enum><text>redesignating
paragraph (6) as paragraph (5).</text>
</subparagraph></paragraph></subsection><subsection id="H551548A8877141069C19166C2F27C7BA"><enum>(b)</enum><header>Exclusion from
price support for other nonbasic agricultural commodities</header><text>Section
301 of the Agricultural Act of 1949 (7 U.S.C. 1447) is amended by inserting
<quote>(other than milk)</quote> after <quote>agricultural
commodity</quote>.</text>
</subsection></section><section id="H51507B3620844CD6B788ACB78BB9E07D" section-type="subsequent-section"><enum>1483.</enum><header>Repeal of dairy
export incentive program</header>
<subsection id="H855AAFEA465E420B83E922A474FE9CF3"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 153 of the
Food Security Act of 1985 (15 U.S.C. 713a–14) is repealed.</text>
</subsection><subsection id="H87B28333D93E444BB347C466190D0F73"><enum>(b)</enum><header>Conforming
amendments</header><text>Section 902(2) of the Trade Sanctions Reform and
Export Enhancement Act of 2000 (22 U.S.C. 7201(2)) is amended—</text>
<paragraph id="HC1D96383233046468048B370620B49DD"><enum>(1)</enum><text>by striking
subparagraph (D); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB4398EF571644550B5EDF1D649436479"><enum>(2)</enum><text>by redesignating
subparagraphs (E) and (F) as subparagraphs ((D) and (E).</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HEB21A18CEAE04A2F8F2752868617B013" section-type="subsequent-section"><enum>1484.</enum><header>Effective
date</header><text display-inline="no-display-inline">The amendments made by
this part shall take effect on January 1, 2012.</text>
</section></part></subtitle><enum>II</enum><header>Conservation</header>
<subtitle id="H3A16B919924D46B5A823554DCEBA7F8A"><enum>A</enum><header>Conservation
reserve program</header>
<section id="H9DD9236B5E1B410A944576B2E99C0EE7"><enum>2001.</enum><header>Conservation
reserve program</header>
<subsection id="H4BF793CB87604510A07FC4DE6EA6206F"><enum>(a)</enum><header>In
general</header><text>Section 1231(a) of the Food Security Act of 1985 (16
U.S.C. 3831(a)) is amended—</text>
<paragraph id="H87F6CD4552E044208E0D7CA9570E7E8F"><enum>(1)</enum><text>by striking
<quote>(a) <header-in-text level="subsection" style="OLC">In
general</header-in-text>.—Through the 2012 fiscal year</quote> and inserting
the following:</text>
<quoted-block display-inline="no-display-inline" id="H94D4BFF0A9974B008B401B02292E1F60" style="OLC">
<subsection id="H7EF143E17C3340D5884E4FCF8A49F853"><enum>(a)</enum><header>Authority</header>
<paragraph id="HA39018D857104C1B99AA6FBA10379283"><enum>(1)</enum><header>In
general</header><text>Through the 2017 fiscal
year</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H9A6B3FAB4461462FBC94A2B249215577"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H5C37335F39614F36BC264C915758213F" style="OLC">
<paragraph id="H9D00B3D346484D2BB1115498D718C869"><enum>(2)</enum><header>Relationship to
easement benefits program</header>
<subparagraph id="H3E4E955B74E04245806028763B00EE7A"><enum>(A)</enum><header>In
general</header><text>The Secretary shall administer the conservation reserve
program in conjunction with the easement benefits program under subchapter C in
a manner that encourages landowners to enroll land in the easement benefits
program to maximize the long-term benefits of fiscal outlay.</text>
</subparagraph><subparagraph id="H183ED608CDBF4EADADE0D234C6E89F20"><enum>(B)</enum><header>Transfer</header><text>The
Secretary shall make available to all owners and operators enrolled in the
conservation reserve program the option to transfer the enrolled land into the
easement benefits program under subchapter C.</text>
</subparagraph></paragraph><paragraph id="H189CCB047B3A40FBAA718D8B9DCD3DEE"><enum>(3)</enum><header>Minimization of
costs</header>
<subparagraph id="H9CA0F5F09A8F4FB296A6F779624F7CEA"><enum>(A)</enum><header>New
contracts</header><text>In entering into contracts under the conservation
reserve program, the Secretary shall seek to minimize cost by allowing limited
commercial use of land under contract, as authorized under section 1232(a)(3)
and subparagraphs (A) through (D) of section 1232(a)(8).</text>
</subparagraph><subparagraph id="HE8A7E005E1364D38B21E2450D1F5D98F"><enum>(B)</enum><header>Existing
contracts</header>
<clause id="HE3C7A2C0314641038DC684829E5AA841"><enum>(i)</enum><header>In
general</header><text>Not later than 2 years after the date of enactment of the
<short-title>Rural Economic Farm and Ranch Sustainability
and Hunger Act of 2011</short-title>, the Secretary shall make available a
revision of contracts in existence on the date of enactment of this subsection
to allow limited commercial usage under the contracts of not less than
5,000,000 acres of land (such as for prescribed or routing grazing and managed
harvesting), subject to conditions in section 1232.</text>
</clause><clause id="H0C3B95419C04414EA7615798806F9524"><enum>(ii)</enum><header>Use of
savings</header><text>Any amounts saved through contract revisions described in
clause (i) may, as determined the Secretary, be used—</text>
<subclause id="H1BA9FF8A625344D3AD4B7837A1CA556C"><enum>(I)</enum><text>to expand the
provision of technical assistance; and</text>
</subclause><subclause id="HD0E6AFBEB3B446EC8C8610013568F16B"><enum>(II)</enum><text>to provide
incentives for owners or operators to shift land into the easement benefits
program.</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="HF4C96B9474854EB295263B32023BA4EE"><enum>(b)</enum><header>Eligible
land</header>
<paragraph commented="no" id="H292198933067456AA9D2413166547083"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 1231(b) of
the Food Security Act of 1985 (16 U.S.C. 3831(b)) is amended—</text>
<subparagraph commented="no" id="HE7516ACFE30246A8A75DDA9B88042ED4"><enum>(A)</enum><text>in paragraph
(4)—</text>
<clause commented="no" id="H9FEA434DE8294B70A32D780C1A13A9CA"><enum>(i)</enum><text>in subparagraph
(B)—</text>
<subclause commented="no" id="H602D2C7F90024B67B9E338B65B181F9F"><enum>(I)</enum><text>in clause (i), by
striking <quote>or</quote> at the end;</text>
</subclause><subclause commented="no" id="H628EEB1887AB407DB399D7B34406B118"><enum>(II)</enum><text>in clause (ii),
by adding <quote>or</quote> at the end; and</text>
</subclause><subclause commented="no" id="HCA2455EDFE10483AB5A404E5B862E1CC"><enum>(III)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H60A184459FCA4839AA1FB43FBFCB9E0A" style="OLC">
<clause id="H7D14DB4A38514195887C78F54D34041F"><enum>(iii)</enum><text>riparian buffer
or filter strip planted to grass, shrubs, trees or other appropriate
vegetation, as determined by the
Secretary;</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subclause></clause><clause commented="no" id="HE89DC00185CA4DCFA1FCD5F89E46966C"><enum>(ii)</enum><text>in subparagraph
(E), by striking <quote>or</quote> at the end;</text>
</clause></subparagraph><subparagraph commented="no" id="HB87655CB1CA44324B15D618D5BD2C261"><enum>(B)</enum><text>in subparagraph
(5)(B)(ii), by striking the period at the end and inserting a semicolon;
and</text>
</subparagraph><subparagraph commented="no" id="H5C49754988D54B7C9DDA805CEE4F6E56"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H0ED82F1E492B4E7D9FB6389E0C1C46C2" style="OLC">
<paragraph id="H9E71FCC303114F9D8897658B122B47A5"><enum>(6)</enum><text>subject to
subsection (j), land—</text>
<subparagraph id="H855AE16F8D634C9E867D46E47FD68405"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="H4E9136E68A8449689EE90DF656F11BF1"><enum>(B)</enum><text>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;</text>
</subparagraph><subparagraph id="H27B9C4785B6243938C3FFB0CC14FD64B"><enum>(C)</enum><text>that was devoted
to commercial pond-raised aquaculture in any year during the period of calendar
years 2002 through 2007; or</text>
</subparagraph><subparagraph id="HD6BBB3BAE7294F009125B968C47CEB66"><enum>(D)</enum><text>that, after
January 1, 1990, and before December 31, 2002, was—</text>
<clause id="H837BCFAB4F9D4609A73AA90087EAE989"><enum>(i)</enum><text>cropped during at
least 3 of 10 crop years; and</text>
</clause><clause id="H66837F12C52442C385C846DB083E24B2"><enum>(ii)</enum><text>subject to the
natural overflow of a prairie wetland; or</text>
</clause></subparagraph></paragraph><paragraph id="HA163E731623E45E5A2B12C3C996A247B"><enum>(7)</enum><text>subject to
subsection (j), buffer acreage that—</text>
<subparagraph id="H050FFD65F8A0476F8BAE2BC33A956A8C"><enum>(A)</enum><text>with respect to
land described in subparagraph (A), (B), or (C) of paragraph (6)—</text>
<clause id="HEA3D869C79FA48A78BDA98C37F5CA841"><enum>(i)</enum><text>is
contiguous to such land;</text>
</clause><clause id="H8E99E77904294006808AB570A48590B2"><enum>(ii)</enum><text>is used to
protect such land; and</text>
</clause><clause id="HF46E0A50831842C3B54042CD603EFC3E"><enum>(iii)</enum><text>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</text>
</clause></subparagraph><subparagraph id="HF5665FFA9F954326ACEC88C8B321A6F6"><enum>(B)</enum><text>with respect to
land described in subparagraph (D) of paragraph (6), enhances a wildlife
benefit.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="HCE34BB2030584CA68C972E23B4F39E3A"><enum>(2)</enum><header>Limitations and
duties relating to enrolled wetland and buffer acreage</header><text>Section
1231 of the Food Security Act of 1985 (16 U.S.C. 3831) is amended by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H17726E35EAD8429289D5AECC4EF06722" style="OLC">
<subsection commented="no" id="H9324307CCD394767893C7EA5FDFF7B1B"><enum>(j)</enum><header>Limitations and
duties relating to enrolled wetland and buffer acreage</header>
<paragraph id="H5B0DCC14EEB94D52BF74FBBEF764D307"><enum>(1)</enum><header>Enrollment
limitations</header>
<subparagraph id="H86889B894CAD4FFA863F83C7E5A310AE"><enum>(A)</enum><header>Wetland and
related land</header>
<clause id="HAD72890CD3E04BCEBDB995F3FD8734D0"><enum>(i)</enum><header>Wetlands and
constructed wetlands</header><text>The maximum size of any land described in
subparagraph (A) or (B) of subsection (b)(6) that an owner or operator may
enroll in the conservation reserve shall be 40 contiguous acres.</text>
</clause><clause id="H039FC298A43C4DCA80CA3C1D5D426DCC"><enum>(ii)</enum><header>Flooded
farmland</header><text>The maximum size of any land described in subparagraph
(D) of subsection (b)(6) that an owner or operator may enroll in the
conservation reserve shall be 20 contiguous acres.</text>
</clause><clause id="HAA9A798AD1D540C59123249BFA9F55DA"><enum>(iii)</enum><header>Coverage</header><text>All
acres described in clause (i) or (ii), including acres that are ineligible for
payment, shall be covered by the conservation contract.</text>
</clause></subparagraph><subparagraph id="HBAA33AAE8E884A8E846539B1926287F0"><enum>(B)</enum><header>Buffer
acreage</header><text>The maximum size of any buffer acreage described in
subsection (b)(7) that an owner or operator may enroll in the conservation
reserve shall be determined by the Secretary, in consultation with the State
Technical Committee.</text>
</subparagraph><subparagraph id="H5774419FC3F64ED191797E54CC657A58"><enum>(C)</enum><header>Tracts</header><text>Except
for land described in subsection (b)(6)(C) and buffer acreage relating to that
land, the maximum size of any eligible acreage described in subsection (b)(6)
in a tract of an owner or operator enrolled in the conservation reserve under
this section shall be 40 acres.</text>
</subparagraph></paragraph><paragraph id="HC369FC70D3924BC5B6AF488FABBB4B1B"><enum>(2)</enum><header>Duties of owners
and operators</header><text>During the term of a contract entered into
involving land described in paragraph (6) or (7) of subsection (b), an owner or
operator shall agree to a prohibition of commercial use except for activities
conducive to conservation of the enrolled land, as determined by the
Secretary.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HC531B7824ECD4C39A12D043EF0943339"><enum>(c)</enum><header>Maximum
enrollment</header><text display-inline="yes-display-inline">Section 1231 of
the Food Security Act of 1985 (16 U.S.C. 3831) is amended by striking
subsection (d) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H8442F018292446CEAAE678A9223F63C6" style="OLC">
<subsection id="H6C857AA9A38A486F9D6588AA842980D2"><enum>(d)</enum><header>Maximum
enrollment</header>
<paragraph id="HE07A1D26128147658EAC43595FD87F8A"><enum>(1)</enum><header>In
general</header><text>The Secretary may maintain in the conservation reserve at
any 1 time, not more than—</text>
<subparagraph id="H7DFC92EA3BD94574B3C63D7870311657"><enum>(A)</enum><text>during fiscal year
2012, 30,000,000 acres;</text>
</subparagraph><subparagraph id="HE3825421EFFD485AB5809AF789B69C85"><enum>(B)</enum><text>during fiscal year
2013, 26,000,000 acres; and</text>
</subparagraph><subparagraph id="HE3E9808A43FD4DC4AE63BF1D1F0C2ACA"><enum>(C)</enum><text>during each of
fiscal years 2014 through 2017, 24,000,000 acres.</text>
</subparagraph></paragraph><paragraph id="HFAD3C8FCADA44DD7A2CA03CABC5BD68B"><enum>(2)</enum><header>Transfer of
enrollment</header><text>The Secretary may transfer enrolled acre allowance
from the conservation reserve program to the easement benefits program
established under subchapter
C.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H2481FDE7A64040038ED64C3288F6B64A"><enum>(d)</enum><header>Conservation
priority areas</header><text>Section 1231(f)(1) of the Food Security Act of
1985 (16 U.S.C. 3831(f)(1)) is amended by striking <quote>areas of the
Chesapeake Bay Region, the Great Lakes Region, the Long Island Sound Region,
and other</quote>.</text>
</subsection></section><section id="HBE8FAC8DF10F46089E8A8525FFFC924E"><enum>2002.</enum><header>Pilot program
for enrollment of wetland and buffer acreage in conservation
reserve</header><text display-inline="no-display-inline">Section 1231B of the
Food Security Act of 1985 (16 U.S.C. 3831b) is repealed.</text>
</section><section id="H7D140C0F8C5D49FDA328D8BECD6D4C91"><enum>2003.</enum><header>Duties of
owners and operators</header><text display-inline="no-display-inline">Section
1232(a)(8)(C) of the Food Security Act of 1985 (16 U.S.C. 3832(a)(8)(C)) is
amended by striking <quote>for the control of invasive species</quote>.</text>
</section><section id="H10234130C55A436DA162FC1ADBE39C17"><enum>2004.</enum><header>Payments</header><text display-inline="no-display-inline">Section 1234 of the Food Security Act of
1985 (16 U.S.C. 3834) is amended—</text>
<paragraph id="H5CEDB202715E4E0FB14230A218942834"><enum>(1)</enum><text>in subsection
(b)—</text>
<subparagraph id="H68F0961619374C36BD794BD217A03ADA"><enum>(A)</enum><text>in paragraph (1),
by inserting <quote>not more than</quote> before <quote>50
percent</quote>;</text>
</subparagraph><subparagraph id="H21F5408D3D3C46F3AC3636CBA169BECE"><enum>(B)</enum><text>in paragraph
(3)(B)(i), by inserting <quote>not more than</quote> before <quote>50
percent</quote>;</text>
</subparagraph><subparagraph id="HB681D1F99627421B9B2105FC6DCFF5FD"><enum>(C)</enum><text>by redesignating
paragraph (5) as paragraph (6); and</text>
</subparagraph><subparagraph id="H857137B83A384B5D94CBE1A008D09D49"><enum>(D)</enum><text>by inserting after
paragraph (4) the following:</text>
<quoted-block display-inline="no-display-inline" id="H474FEAA945A44A7F8316C7FCAA7D9DDF" style="OLC">
<paragraph id="HEF74226A617E419F96EA427FCC4E541B"><enum>(5)</enum><header>Prescribed
burning</header><text>Notwithstanding any other provision of this section, in
making cost-sharing payments to an owner or operator under a contract entered
into under this subchapter, the Secretary shall pay not more than 75 percent of
the cost of prescribed burning.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H21233DF00F324B08879B86FD01037894"><enum>(2)</enum><text>in subsection
(c)(5), by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H5ED785B9F6814A84A15F49DFE0F4A62F" style="OLC">
<subparagraph id="H2330E23EE7AF449891BDCF731D61C0F7"><enum>(C)</enum><header>Review
required</header><text>The Secretary shall periodically review the
competitiveness of rental rates for land that—</text>
<clause id="H38345FEC53874B7AA707BCF5DAFD4CC3"><enum>(i)</enum><text>provides
substantial environmental benefits consistent with the purposes of this
subchapter;</text>
</clause><clause id="H189A15654A94451E9C0F96D9DB7A206D"><enum>(ii)</enum><text>provides critical
habitat to species of concern; or</text>
</clause><clause id="HF53BF989AEB04054B8E38D1618E97655"><enum>(iii)</enum><text>meets other
ecological priorities, as determined by the
Secretary.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H5D0623B8FF1044F796FD809C72176C73"><enum>2005.</enum><header>Contracts</header><text display-inline="no-display-inline">Section 1235 of the Food Security Act of
1985 (16 U.S.C. 3835) is amended—</text>
<paragraph id="H3529B3F15B8643F18CC88CB61F2892AF"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(1)—</text>
<subparagraph id="H8846210EC8B14B7EA284910DB33DE77F"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (C), by striking
<quote>or</quote> at the end;</text>
</subparagraph><subparagraph id="H54FD5F043E38494AA82250024B2562CF"><enum>(B)</enum><text>in subparagraph
(D), by striking the period at the end and inserting <quote>; or</quote>;
and</text>
</subparagraph><subparagraph id="HF223C213A5B7472890F4D7E2A9D0EBD0"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HA2171D1CA3AF417E85F63C3AFF907053" style="OLC">
<subparagraph id="HD0A6CDE1832F4EAA8E4BD40258C33A6B"><enum>(E)</enum><text>the new ownership
was acquired by the sibling, parent, child, or grandchild of the previous
owner.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H22CAB8B4328D4228AE699A1F9AFA54CA"><enum>(2)</enum><text>in subsection
(f)(1)(D), by striking <quote>conservation stewardship program or the
environmental quality incentives program</quote> and inserting <quote>working
land program</quote>.</text>
</paragraph></section><section id="H1E689EB313E64246BFBEC336E050CD13"><enum>2006.</enum><header>Conversion of
land subject to contract to other conserving uses</header><text display-inline="no-display-inline">Section 1235A of the Food Security Act of
1985 (16 U.S.C. 3835a) is amended—</text>
<paragraph id="H0C5A159C737749479455B0CD97C8F888"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="H1790643C4E6842D1A1E9EFBEA73FFB55"><enum>(A)</enum><text>in paragraph
(2)(B), by inserting <quote>not more than</quote> before
<quote>50</quote>;</text>
</subparagraph><subparagraph id="H6E371CD70B0E4D8E867E088A1529C0AA"><enum>(B)</enum><text>striking
<quote>(1) <header-in-text level="paragraph" style="OLC">In
general</header-in-text>.—The Secretary</quote> and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H04D2AD061E5044C1A9446A26E49D3F07" style="OLC">
<paragraph id="H0C7B95A60334470B93AF631BF1E0C00C"><enum>(1)</enum><header>November 28,
1990</header>
<subparagraph id="HA0F08065140046B9BC43ECDA85DE43A6"><enum>(A)</enum><header>In
general</header><text>The
Secretary</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H6C6A0525198D4A10A1324F95159B0121"><enum>(C)</enum><text>by redesignating
subparagraphs (A) and (B) of paragraph (2) as clauses (i) and (ii),
respectively, and indenting appropriately;</text>
</subparagraph><subparagraph id="H368E94B6AA9648268E2D7ECB60E869A2"><enum>(D)</enum><text>by redesignating
paragraph (2) as subparagraph (B) and indenting appropriately; and</text>
</subparagraph><subparagraph id="HB0C8F5F0EA344732895DA0FF22200B02"><enum>(E)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HFAE6A4E40A744788A4F259F8D6B11509" style="OLC">
<paragraph id="H3FB67EDB202C42FCB9EE633A1889D1BE"><enum>(2)</enum><header>October 1,
2011</header><text>The Secretary shall permit an owner or operator that has
entered into a contract under this subchapter that is in effect on October 1,
2011, to convert areas of highly erodible cropland that are subject to the
contract, and that are devoted to vegetative cover, from that use to forest
land if—</text>
<subparagraph id="HF59AC40F298B48458434EC10EE56CB59"><enum>(A)</enum><text>the areas are
prior converted forest land;</text>
</subparagraph><subparagraph id="HC9FF2047ADE7474F9959492FB0B643E7"><enum>(B)</enum><text>the owner or
operator of the areas enters into an agreement to provide the Secretary with a
long-term or permanent easement under the easement benefits program under
subchapter C covering the areas;</text>
</subparagraph><subparagraph id="HB553BAC347A14B06AA5A02F57E4D9390"><enum>(C)</enum><text>there is a high
probability that the prior converted area can be successfully restored to
forest land status; and</text>
</subparagraph><subparagraph id="HE6BA682F8FB34C169D062F430712B66F"><enum>(D)</enum><text>the restoration of
the areas otherwise meets the requirements the easement benefits
program.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H9E9D143B4DD34BC38349AE9638A6906E"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b), by striking
<quote>November 28, 1990</quote> and inserting <quote>October 1, 2011</quote>;
and</text>
</paragraph><paragraph id="H39583952870745F39A10437DF27BD603"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H004B35F383DC4CD0AF4D16F207692BB4" style="OLC">
<subsection id="H64B23C8574144562A31FC6942641F3CD"><enum>(e)</enum><header>Early contract
opt-Out</header>
<paragraph id="HB7AF1CF9299D4615B83696E93956BAA6"><enum>(1)</enum><header>In
general</header><text>The Secretary shall—</text>
<subparagraph id="H6BD92A73D40A494D816B7BD3286238FE"><enum>(A)</enum><text>make available a
no-penalty early contract opt-out for not less than 8,000,000 acres enrolled
under contracts in existence on the date of enactment of this
subsection;</text>
</subparagraph><subparagraph id="HFE205173476B461CA509E7AEB6E948FB"><enum>(B)</enum><text>not later than 1
year after the date of enactment of this subsection, ensure that not less than
½ of the required acreage has been made available to be opted-out of the
conservation reserve program;</text>
</subparagraph><subparagraph id="H1DFD5201E324420FB396E78BD6086B35"><enum>(C)</enum><text>not later than 2
years after the date of enactment of this subsection, ensure that the entire
amount of required acreage has been made available to opt-out; and</text>
</subparagraph><subparagraph id="H7D2DADFDFA8E43BAB437F77239C3464D"><enum>(D)</enum><text>terminate a
contract entered into with an owner or operator offered an early opt-out under
this subchapter if the owner or operator agrees to the termination.</text>
</subparagraph></paragraph><paragraph id="HE5508B7B18094FB9B8952DD46A94B72B"><enum>(2)</enum><header>Considerations</header><text>In
determining land to offer for opt-out under this subsection, the Secretary
shall—</text>
<subparagraph id="H142BB1A1ED7643D0877ECE4E828DA70F"><enum>(A)</enum><text>make available for
opt-out those acres offering the least environmental benefit, as determined by
the Secretary;</text>
</subparagraph><subparagraph id="HE5FDF6764A53423D92C9473B8B90398C"><enum>(B)</enum><text>consider the need
to protect critical habitat (including nesting areas for birds); and</text>
</subparagraph><subparagraph id="HC5214CFC0B7A4D5AB411DE99F3DCDECF"><enum>(C)</enum><text>maintain in the
conservation reserve land of high environmental value (including wetland), as
determined by the Secretary, and including—</text>
<clause id="HA55D0E19D31943569FEC8521509DB681"><enum>(i)</enum><text>riparian
buffers;</text>
</clause><clause id="HD28A96354B4B466AB72B04CAE5886D6C"><enum>(ii)</enum><text>wildlife habitat
buffers;</text>
</clause><clause id="H9B478A9BE1084F6EA91C688C2834FD22"><enum>(iii)</enum><text>wetland
buffers;</text>
</clause><clause id="H94E97341E7164EB3B652888972B80E54"><enum>(iv)</enum><text>filter
strips;</text>
</clause><clause id="H38437538D16A4689B112F8B0BB3ED67C"><enum>(v)</enum><text>grass
waterways;</text>
</clause><clause id="HE6CC7598342243C4BEEAEDF260C0190B"><enum>(vi)</enum><text>wetland
restoration areas;</text>
</clause><clause id="HE49A0886E56447089C5050AB444031D4"><enum>(vii)</enum><text>shelterbelts;</text>
</clause><clause id="H2B3A690F27BB4F5CBBF11535B5CB68AF"><enum>(viii)</enum><text>living snow
fences;</text>
</clause><clause id="H7D57D72135D0427B8BFA5A239F90B69F"><enum>(ix)</enum><text>contour grass
strips;</text>
</clause><clause id="H36F13B278E8044D997097717D86C40B6"><enum>(x)</enum><text>land with a high
erodibility index;</text>
</clause><clause id="H06D1EB0F7FE842549D24852CFAB44E7C"><enum>(xi)</enum><text>salt-tolerant
vegetation; and</text>
</clause><clause id="H46A28E5BD0694572AE985E24E4483B8D"><enum>(xii)</enum><text>shallow-water
areas for wildlife.</text>
</clause></subparagraph></paragraph><paragraph id="HDEF23B819D2A4E96B98CD6B06E2F2A1B"><enum>(3)</enum><header>Subdivision</header><text>In
carrying out this subsection, the Secretary may subdivide leased acres enrolled
in the conservation reserve under the same contract.</text>
</paragraph><paragraph id="HD45A7B1074B94959A4C3B3B4B1391711"><enum>(4)</enum><header>Conditions</header>
<subparagraph id="HCD588FB435A9492795FBB217C60F37EE"><enum>(A)</enum><header>Commodity
production</header><text>If land that was subject to a contract under this
subchapter is converted to production of an agricultural commodity through the
opt-out under this subsection, the land shall be subject to a conservation plan
determined by the Secretary in coordination with the State technical committee
for the duration of what would have been the full term of the conservation
reserve contract of the land, if not for opt-out.</text>
</subparagraph><subparagraph id="H59B721974E574FF58F2E66CEAEC10236"><enum>(B)</enum><header>Grazing and
managed harvesting</header><text>If land that was subject to a contract under
this subchapter is converted to grazing and managed harvesting through the
opt-out under this subsection, the land shall be subject to environmental
management criteria pursuant section 1232(a)(8) for the duration of what would
have been the full term of the conservation reserve contract of the land, if
not for opt-out.</text>
</subparagraph><subparagraph id="HE68202908260433E8DD05E95FE8AC81E"><enum>(C)</enum><header>Technical
assistance</header><text>The Secretary shall make available conservation
technical assistance to owners and operators that opt-out of the conservation
reserve under this subsection.</text>
</subparagraph></paragraph><paragraph id="HDD31A244160E48EA81D272BB8EB64515"><enum>(5)</enum><header>Effective
date</header><text>Contract termination under the opt-out shall become
effective 60 days after the date on which the owner or operator accepts the
opt-off offer of the Secretary.</text>
</paragraph><paragraph id="H901E5FBCD0CB4EE0950D1FC50F3EA852"><enum>(6)</enum><header>Prorated rental
payment</header><text>If a contract entered into under this subchapter is
terminated under this subsection before the end of the fiscal year for which a
rental payment is due, the Secretary shall provide a prorated rental payment
covering the portion of the fiscal year during which the contract was in
effect.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section></subtitle><subtitle id="HC885FCCBBFBC4CAA88BF4359CC6FDA68"><enum>B</enum><header>Easement benefits
program</header>
<section id="H6D93DD36DA1F4C94895E2C806CB0B8D1"><enum>2101.</enum><header>Easement
benefits program</header>
<subsection id="H91E8F6507E484802BC31E36A0E68FEEF"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Title XII of the Food
Security Act of 1985 (16 U.S.C. 3801 et seq.) is amended—</text>
<paragraph id="H7FDAE30FF32A47B5AE2F31DAF5AEBC60"><enum>(1)</enum><text display-inline="yes-display-inline">by striking subchapters C and D of chapter
2 of subtitle D (16 U.S.C. 3838h et seq.); and</text>
</paragraph><paragraph id="H7024C88FFFC8411681528280DB8296AB"><enum>(2)</enum><text>by striking
subchapter C of chapter 1 of subtitle D (16 U.S.C. 3837 et seq.) and inserting
the following:</text>
<quoted-block display-inline="no-display-inline" id="H938049C1E0004D1F9E390869DC6B69A0" style="OLC">
<subchapter id="HE863B3116E3643C08C0FB6FEFFD38F6C"><enum>C</enum><header>Easement benefits
program</header>
<section id="H79C7D79DB50445CCB34C001C3C163FA2"><enum>1237.</enum><header>Easement
benefits program</header>
<subsection id="H36362098DED1478BB4711B494865C081"><enum>(a)</enum><header>Establishment</header><text>The
Secretary shall establish an easement benefits program (referred to in this
subchapter as the <quote>program</quote>)—</text>
<paragraph id="HAEA85FFD9FD94CA49BF5E24FD0CD5E43"><enum>(1)</enum><text>to protect land
(including wildlife resources of the land) and water; and</text>
</paragraph><paragraph id="H2A4D34DED51C4FA586080B832E6EEB70"><enum>(2)</enum><text>to address issues
raised by State, regional, and national conservation initiatives.</text>
</paragraph></subsection><subsection id="HE30FD889163640559B5FB9050D072717"><enum>(b)</enum><header>Purposes</header>
<paragraph id="H2B0E5FCEB08D40D2A6D40D5DC73B6C05"><enum>(1)</enum><header>In
general</header><text>The purposes of the program are—</text>
<subparagraph id="H0DCC07284D7F4FD2AA794FE8A124254D"><enum>(A)</enum><text>to restore,
enhance, conserve, and protect land (including wildlife resources of the land)
and water;</text>
</subparagraph><subparagraph id="H564FE6ECD22741B1ACB344531E5C4436"><enum>(B)</enum><text>to protect
vulnerable and ecologically important land;</text>
</subparagraph><subparagraph id="HEFC1B53B3EF8446DBB6F317714520B0E"><enum>(C)</enum><text>to restore,
protect, and enhance wetland and grassland;</text>
</subparagraph><subparagraph id="HA6DF89212B1B48E2B64B0B5BDD793EC1"><enum>(D)</enum><text>to promote
wildlife habitat;</text>
</subparagraph><subparagraph id="H930EA9F016CF45ACBD1105C73DF7E428"><enum>(E)</enum><text>to protect the
agricultural use and related conservation values of prime and other productive
agricultural land by limiting the nonagricultural uses of the land;</text>
</subparagraph><subparagraph id="H016A4658F3DB4EC4A41387E9F5AE7E6B"><enum>(F)</enum><text>to restore and
enhance forest ecosystems, including the recovery of threatened and endangered
species and improving biodiversity;</text>
</subparagraph><subparagraph id="H09EE17EC841B4A08A3316DAE6B0F6F30"><enum>(G)</enum><text>to provide
assistance to owners to ensure the economic use of enrolled land by owners
consistent with long-term conservation functions and values, including wildlife
resources of the land; and</text>
</subparagraph><subparagraph id="H5C721149FC084CD8B4413095C151DC79"><enum>(H)</enum><text>to address issues
of restoration, conservation, and protection of land (including wildlife
resources of the land) and water raised by State, regional, and national
conservation priorities.</text>
</subparagraph></paragraph><paragraph id="H9E4626E745734CD1AE47B6BA8C6D3800"><enum>(2)</enum><header>State
coordination</header><text>The Secretary shall give priority consideration to
conservation needs identified by State technical committees established under
section 1261.</text>
</paragraph></subsection><subsection id="HF91311B4A9F847A1A2B26033F9D9AAEE"><enum>(c)</enum><header>Existing
easements</header>
<paragraph id="H518C1D15BE0F4570BB52EE2D40AED1CA"><enum>(1)</enum><header>In
general</header><text>Any easement or interest in land enrolled as of the date
of enactment of the <short-title>Rural Economic Farm and
Ranch Sustainability and Hunger Act of 2011</short-title> in 1 of the programs
described in paragraph (2) shall be considered enrolled in the easement
benefits program under this subchapter.</text>
</paragraph><paragraph id="H7441F6FDFFE341E4B735A59429CB4F69"><enum>(2)</enum><header>Affected
programs</header><text>The programs described in this paragraph are as the
programs were authorized on the day before the date of enactment of the
<short-title>Rural Economic Farm and Ranch Sustainability
and Hunger Act of 2011</short-title>—</text>
<subparagraph id="HD338253E685745D6A01AB08DF10847D9"><enum>(A)</enum><text>the wetlands
reserve program established under this subchapter;</text>
</subparagraph><subparagraph id="HBFD926FAAFDC46CBA23E39E4472FD4A2"><enum>(B)</enum><text>the grassland
reserve program established under subchapter D of chapter 2;</text>
</subparagraph><subparagraph id="HC065FFE9AA6B4A1FB04B2618F17AB996"><enum>(C)</enum><text>the farmland
protection program established under subchapter C of chapter 2; and</text>
</subparagraph><subparagraph id="H44B4B29A1536402EB23BE84ACFEDCECB"><enum>(D)</enum><text>the healthy
forests reserve program established under section 501 of the Healthy Forests
Restoration Act of 2003 (16 U.S.C. 6571).</text>
</subparagraph></paragraph></subsection></section><section id="HC58709D841164146ADA8BEE1DDA24CE6"><enum>1237A.</enum><header>Easements and
30-year contracts</header>
<subsection id="H4367C8AE078B462392D8C7CCD6B5EE03"><enum>(a)</enum><header>Enrollment</header>
<paragraph commented="no" display-inline="no-display-inline" id="H52E6C46E118D4FE29AB2701A1FB8ED31"><enum>(1)</enum><header>In
general</header><text>Lands may be enrolled under this subchapter through the
submission of applications under a competitive procedure established by the
Secretary.</text>
</paragraph><paragraph id="H97A47CC7C7224D76AEE74C427F5FDAF2"><enum>(2)</enum><header>Methods of
enrollment</header>
<subparagraph id="H4B3E379963EB40CDA28C9E82E043EE3A"><enum>(A)</enum><header>In
general</header><text>The Secretary shall enroll acreage into the program
through the use of—</text>
<clause id="H42E0589EDE1142CFA9458686CB31EEB7"><enum>(i)</enum><text>permanent
easements; and</text>
</clause><clause id="H3B03F688AFB145B7AD65CCE7DC1D08E5"><enum>(ii)</enum><text>30-year
easements, or in a State that imposes a maximum duration for easements,
easements for the maximum duration allowed under State law (referred to as
<quote>nonpermanent easements</quote>).</text>
</clause></subparagraph><subparagraph id="H5F760770A2BA43B6949A7A167367B07D"><enum>(B)</enum><header>Acreage owned by
Indian tribes</header><text>In the case of acreage owned by an Indian tribe,
the Secretary may also enroll acreage into the program through the use of a
30-year contract (the value of which shall be equivalent to the value of a
30-year easement).</text>
</subparagraph></paragraph><paragraph id="HCB3B3FBE9C49452DBBEFDC03D55BCFB8"><enum>(3)</enum><header>Enrollment of
conservation reserve land</header>
<subparagraph id="H9C51009C69DE431D90EB96753573AB51"><enum>(A)</enum><header>Transfer from
the conservation reserve program</header><text>The Secretary may terminate or
modify an existing contract entered into the conservation reserve program under
section 1231 if eligible land that is subject to the contract is transferred
into the program established by this subchapter.</text>
</subparagraph><subparagraph id="HCDB81FE2E3404303B5BA039795B9732F"><enum>(B)</enum><header>Priority</header><text>On
expiration of a contract under the conservation reserve program under
subchapter B, the Secretary shall give priority for enrollment in the program
to land previously enrolled in the conservation reserve program if—</text>
<clause id="H3FBFE4675CC641DB99FE2AE0D8C42A0B"><enum>(i)</enum><text>the land is
eligible land under subsection (b); and</text>
</clause><clause id="H4118139B298C4B9F89F2D0858002478C"><enum>(ii)</enum><text>the Secretary
determines that the land is of high ecological value.</text>
</clause></subparagraph><subparagraph id="HAE03D7C11EFA496898521ABA02B02DA9"><enum>(C)</enum><header>Special funding
pool</header>
<clause id="HF4A499AF13704AC6ABD722D701583953"><enum>(i)</enum><header>In
general</header><text>Of the funds made available for the program for each of
the 2013 through 2017 fiscal years, the Secretary shall reserve 10 percent of
the funds to ensure an adequate source of funds and acres to give priority for
enrollment of land identified under subparagraph (B).</text>
</clause><clause id="H7CBE617498D94A1CA641AC83D4E30889"><enum>(ii)</enum><header>Reobligation</header><text>Funds
not obligated under clause (i) by April 1 of each year may be available for use
for other purposes of the program.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H51E0B6996EA84561B335A4AC1D39FA23"><enum>(b)</enum><header>Eligible
land</header>
<paragraph id="H30F2E2E4113B41849329998A775266A4"><enum>(1)</enum><header>Enrollment</header>
<subparagraph id="H87AC5B4E4B4F48A2B744FB914537DEB3"><enum>(A)</enum><header>In
general</header><text>Eligible land shall be enrolled into the program subject
to appropriate program requirements depending on the resource objectives sought
to be achieved through the easement or 30-year contract, as determined by the
Secretary.</text>
</subparagraph><subparagraph id="H00F0F17B59324999A46F4B593DDE200C"><enum>(B)</enum><header>Eligibility</header><text>Private
or tribal land shall be eligible to be enrolled into the program if the
Secretary determines that the land—</text>
<clause id="HC516FCE5008D4B4286A99A0C3976A56E"><enum>(i)</enum><text>maximizes the
purpose of this subchapter;</text>
</clause><clause id="HA8460E24467643E696E582932C540324"><enum>(ii)</enum><text>is enrolled in
the conservation reserve program; or</text>
</clause><clause id="H714675D112E145AFA3D413B6CC3C5D7B"><enum>(iii)</enum><text>in the case of
land enrolled for restoration purposes, the likelihood of the successful
restoration of the land and the resultant values merit the inclusion of the
land in the program taking into consideration the cost of the
restoration.</text>
</clause></subparagraph></paragraph><paragraph id="HE26B23EF94D94486A3769CF7A4959E99"><enum>(2)</enum><header>Wetland</header>
<subparagraph id="H0221F45056BF4428A0A11EE2F699758F"><enum>(A)</enum><header>In
general</header><text>Land shall be eligible to be enrolled into the program if
the Secretary determines that the land is—</text>
<clause id="HF32B19D0B83D42238A031413D31F2ECE"><enum>(i)</enum><text>farmed wetland or
converted wetland, together with the adjacent land that is functionally
dependent on the wetland, 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;</text>
</clause><clause id="H31B7E1D9C56B4B39B89444FE22259485"><enum>(ii)</enum><text>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 (if practicable) with the adjacent land that is
functionally dependent on the cropland or grassland;</text>
</clause><clause id="HB44B68B93BC94782A95663F78BB6DFFB"><enum>(iii)</enum><text>farmed wetland
and adjoining land, enrolled in the conservation reserve, with the highest
wetland functions and values, and that is likely to return to production after
the land is not enrolled in the conservation reserve;</text>
</clause><clause id="H9CFA5BCD23774AB3BA43E0446BE44E6C"><enum>(iv)</enum><text>other wetland
(such as filter strips and vernal pools) of an owner that would not otherwise
be eligible if the Secretary determines that the inclusion of the wetland in
the easement would significantly add to the functional value of the easement;
or</text>
</clause><clause id="HA3E28D84DA234CF0BAADCC91523509EE"><enum>(v)</enum><text>a
riparian area.</text>
</clause></subparagraph><subparagraph id="H6A4311CA6CF44B13BA01776F77561D63"><enum>(B)</enum><header>Restoration
agreement</header><text>Land described in subparagraph (A) that is enrolled in
the program shall be subject to a restoration agreement that provides the
opportunity for the restoration and enhancement of the enrolled land.</text>
</subparagraph></paragraph><paragraph id="HEEB8999B19BB46E3B24A0084596361D6"><enum>(3)</enum><header>Grassland</header>
<subparagraph id="HC173C35F0E864F94865AD3C0ECFDF31D"><enum>(A)</enum><header>In
general</header><text>Land shall be eligible to be enrolled into the program if
the Secretary determines that the land is at risk of conversion to nongrazing
uses and is—</text>
<clause id="H3A2512D9D48E49C382EBD4BEBA1A8C1A"><enum>(i)</enum><text>grassland, land
that contains forbs, or shrubland (including improved rangeland and
pastureland), including land for which grazing is the predominant use;
or</text>
</clause><clause id="H09B4A87B084C4E6CA1F6EC1378566443"><enum>(ii)</enum><text>located in an
area that has been historically dominated by grassland, forbs, or shrubland,
and the land—</text>
<subclause id="H863BA5E1775A4911A20F1C29E5D948CD"><enum>(I)</enum><text>could provide
habitat for animal or plant populations of significant ecological value if the
land—</text>
<item id="H62BE720A879E46C49E15E0D287CAC005"><enum>(aa)</enum><text>is
retained in the current use of the land; or</text>
</item><item id="H09DE49C3521A4496B7CFD401E3BC73C3"><enum>(bb)</enum><text>is
restored to a natural condition; or</text>
</item></subclause><subclause id="H1B01F9734CA045448A120A9513836CDD"><enum>(II)</enum><text>contains
historical or archaeological resources.</text>
</subclause></clause></subparagraph><subparagraph id="H6957F46C383B447DBB232F4D9F979787"><enum>(B)</enum><header>Restoration
agreement</header><text>Land described in subparagraph (A) that is enrolled in
the program shall be subject to a restoration agreement that provides the
opportunity for the restoration and enhancement of the enrolled land.</text>
</subparagraph></paragraph><paragraph id="H06F8AD5D227647EC82522653F1D47546"><enum>(4)</enum><header>Forest
land</header>
<subparagraph id="H5D0E71610D6E45C99C574C8558A92DDF"><enum>(A)</enum><header>In
general</header><text>Land shall be eligible to be enrolled into the program if
the Secretary determines that the land is land, the enrollment of which—</text>
<clause id="H036DD6E6E1BB4532ADC0496E2D138ECE"><enum>(i)</enum><text>will restore and
conserve forest land, improve biodiversity, or conserve land from the
conservation reserve program that is being restored to forest land;</text>
</clause><clause id="H78E3ADD9FA3042BE80792D8695A59650"><enum>(ii)</enum><text>will restore,
enhance, or otherwise measurably increase the likelihood of recovery of a
species listed as endangered or threatened under section 4 of the
<act-name parsable-cite="ESA">Endangered Species Act of 1973</act-name> (16
U.S.C. 1533); or</text>
</clause><clause id="H444C049C422F492E8E20CD9DE1B00AA3"><enum>(iii)</enum><text>will restore,
enhance, or otherwise measurably improve the well-being of a species
that—</text>
<subclause id="H8133FC6FE56C46BEA8F402EE49D2597F"><enum>(I)</enum><text>is not listed as
endangered or threatened under section 4 of the <act-name parsable-cite="ESA">Endangered Species Act of 1973</act-name> (16 U.S.C. 1533);
but</text>
</subclause><subclause id="HBE5FAB8B06F74B3AA40640B3D20F8600"><enum>(II)</enum><text>is candidates for
such listing, State-listed species, or special concern species.</text>
</subclause></clause></subparagraph><subparagraph id="HF42CFCA15DBD43CF9D39A2CB421193F7"><enum>(B)</enum><header>Restoration
agreement</header><text>Land described in subparagraph (A) that is enrolled in
the program shall be subject to a restoration agreement that provides the
opportunity for the restoration and enhancement of the enrolled land.</text>
</subparagraph></paragraph><paragraph id="HB18BC6C0A97C4ED1A724E871DE6A6D92"><enum>(5)</enum><header>Prime and
productive agricultural land</header><text>Land shall be eligible to be
enrolled into the program if the Secretary determines that the land is at risk
of conversion to nonagricultural uses and—</text>
<subparagraph id="HD949DC38569C42F1883131ECED436834"><enum>(A)</enum><text>has prime, unique,
or other productive soil;</text>
</subparagraph><subparagraph id="HE6D5767A09224B9C9F56A120F5DE7016"><enum>(B)</enum><text>contains
historical or archaeological resources; or</text>
</subparagraph><subparagraph id="H7396CB8ACBFE4945A0D9DCFEA1EA8344"><enum>(C)</enum><text>the protection of
the land will further a State or local policy consistent with the purposes of
the program.</text>
</subparagraph></paragraph></subsection><subsection id="H7D19E1F051864400BA6600F37D29ECE3"><enum>(c)</enum><header>Other eligible
land</header>
<paragraph id="H6C1B25102C0849F1B98A043FB00A99B2"><enum>(1)</enum><header>In
general</header><text>The Secretary may enroll other land of the owner that
would not otherwise be eligible if the land is determined by the Secretary to
be necessary for the efficient administration of the 30-year contract or
easement under the program.</text>
</paragraph><paragraph id="H27800024CA6E41F1AAD211AAB1F4E20A"><enum>(2)</enum><header>Type of
land</header><text>Land enrolled under this subsection may include small areas
of land as defined by the Secretary, such as riparian zones, filter strips,
buffers, fence lines, and other incidental land.</text>
</paragraph></subsection><subsection id="H8232614634234EA09833626746F3FF81"><enum>(d)</enum><header>Leveraging
non-Federal investment</header><text>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
enhancement program that the Secretary determines would advance the purposes of
the program.</text>
</subsection></section><section id="HC10CC726FD6A4EB6BCB26F15F4746481"><enum>1237B.</enum><header>Duties of
owners</header>
<subsection id="H902926CFAF5F4ED9AB5E4F1FBA080794"><enum>(a)</enum><header>Easements</header><text>To
be eligible to enroll eligible land in the program under an easement, the owner
of the land shall agree—</text>
<paragraph id="HD157683881F649A6ADE4356309D5AEEB"><enum>(1)</enum><text>to grant an
easement to the Secretary;</text>
</paragraph><paragraph id="H90C46540CB8E489BB4CCD48DE9D1215F"><enum>(2)</enum><text>to create and
record an appropriate deed restriction in accordance with applicable State law
to reflect the easement;</text>
</paragraph><paragraph id="H0A3DC2F28EA042178624B4E3F7585BFC"><enum>(3)</enum><text>to provide a
written statement of consent to the easement signed by persons holding a
security interest or any vested interest in the land;</text>
</paragraph><paragraph id="HE02BD31AAC9F431096ABFF01F41EFE92"><enum>(4)</enum><text>to comply with the
terms of the easement and related agreements;</text>
</paragraph><paragraph id="HD74D899A248E44E7A3DE00021D2C14E8"><enum>(5)</enum><text>to comply with the
easement implement plan, as approved by the Secretary, which may be modified
upon mutual agreement of the parties if the Secretary authorizes compatible
uses; and</text>
</paragraph><paragraph id="HAE7D19C8ACF4476A8AFB1C3BF270ED49"><enum>(6)</enum><text>to the permanent
retirement of any existing cropland base and allotment history for the land
under any program administered by the Secretary, unless the purpose of the
particular easement is limited to the prevention of the conversion of prime and
productive agricultural land to nonagricultural uses.</text>
</paragraph></subsection><subsection id="HC2845F54C7F243E1AD509E468C340F5A"><enum>(b)</enum><header>Restoration
agreements</header>
<paragraph id="HA1DBCBD10752438C80894EBBFCC1AD4F"><enum>(1)</enum><header>In
general</header><text>To be eligible for financial assistance to restore
eligible land subject to a 30-year contract or an easement under the program,
the owner of the land shall agree to comply with the terms of a restoration
agreement.</text>
</paragraph><paragraph id="H9620C8F28DDB4665A221F5478589AD4A"><enum>(2)</enum><header>Type of
agreement</header><text>A restoration agreement may be—</text>
<subparagraph id="H4AA8037CEFDD4F9FAC1C5CCF9FD608C4"><enum>(A)</enum><text>a cost-share
agreement with the owner;</text>
</subparagraph><subparagraph id="H84C13B9F3C5040DB998CB5D781AF9443"><enum>(B)</enum><text>a cooperative
agreement with an agency or organization with restoration expertise; or</text>
</subparagraph><subparagraph id="H94D93AABAA5F4550AFB956E7E09653C1"><enum>(C)</enum><text>a contract with a
vendor.</text>
</subparagraph></paragraph><paragraph id="H80F1A1DFC36B4DCD8D10955F0042B73C"><enum>(3)</enum><header>Terms and
conditions</header><text>The Secretary shall prescribe the terms and conditions
of a restoration agreement by which eligible land that is subject to a 30-year
contract or easement under the program shall be restored.</text>
</paragraph><paragraph id="H98A901B76E66416586B6C9E6A2A19AF7"><enum>(4)</enum><header>Duties</header><text>The
restoration agreement shall describe the respective duties of the parties to
the agreement, including the Federal share of restoration payments and
technical assistance.</text>
</paragraph></subsection><subsection id="H4B67C4C16BAE4F30B535160C56B62E8D"><enum>(c)</enum><header>Terms and
conditions applicable to easements and 30-Year contracts</header>
<paragraph id="H93442E3AAEEC450883227746C5CF5DA9"><enum>(1)</enum><header>Reserved
rights</header>
<subparagraph id="H649155BEF38F4C36967AD376B2A9B541"><enum>(A)</enum><header>In
general</header><text>An easement or 30-year contract entered into under the
program shall provide to the Secretary control of the surface rights of the
land while identifying rights reserved to the owner for specified usages
consistent with the purposes of the particular enrollment so as—</text>
<clause id="H3BF4EDD0848046DB8C2455CC76FD31E3"><enum>(i)</enum><text>to
maximize conservation benefits (including wildlife habitat) per dollar spent
across the program; and</text>
</clause><clause id="H10121DF1CFF84F77BE71C9A537BD4C2F"><enum>(ii)</enum><text>to allow the
owner uses of the land that are consistent with the purposes for which the land
is enrolled.</text>
</clause></subparagraph><subparagraph id="H8A025651742149B28ABECF071EB96C71"><enum>(B)</enum><header>Limitations on
activities</header><text>Rights reserved to the owner shall be consistent with
the wetland, grassland, forest land, or productive land purposes for which the
land is enrolled.</text>
</subparagraph></paragraph><paragraph id="H617EC97504A4430598388E44F263E108"><enum>(2)</enum><header>Easement
conservation plan</header>
<subparagraph id="H3AFE548ABE214796B66785D5D85DD6F9"><enum>(A)</enum><header>In
general</header><text>The Secretary shall develop an easement conservation plan
for each easement or 30-year contract enrolled in the program that will
identify how land enrolled in the program will be restored, if applicable, and
managed.</text>
</subparagraph><subparagraph id="H67AEA3C0CF7041EDB366DD08A766A098"><enum>(B)</enum><header>Modification</header><text>An
easement conservation plan shall be modified in response to changing resource
conditions to ensure that the purposes of the program are achieved.</text>
</subparagraph><subparagraph id="HD296F989DC9C44F7B9B23AFCB85DEDD8"><enum>(C)</enum><header>Local and State
involvement</header><text>An easement conservation plan, including any
compatible use that may be authorized for the owner under the program, shall be
made through the local Natural Resources Conservation Service representative,
in coordination with the State technical committee.</text>
</subparagraph><subparagraph id="H7288EE59A0DA4010805E285B4C3E224B"><enum>(D)</enum><header>Permissible
activities</header><text>Consistent with paragraph (3), an easement
conservation plan shall identify the following activities as
permissible:</text>
<clause id="H5F5568C185164BE6A1D5C22C7880B3C8"><enum>(i)</enum><header>Grassland</header><text>In
the case of grassland, an easement conservation plan shall permit—</text>
<subclause id="H4F52475F83884A2D9807DA2FB277E4AF"><enum>(I)</enum><text>common grazing
practices, including maintenance and necessary cultural practices, on the land
that is consistent with maintaining the viability of grassland, forb, and shrub
species appropriate to that locality;</text>
</subclause><subclause id="H5A96C99356954F6E8260464242E31670"><enum>(II)</enum><text>haying, mowing,
or harvesting for seed production or biomass, subject to appropriate
restrictions during the nesting season for birds in the local area, consistent
with Federal or State law and in coordination with the State technical
committee, as determined by the Secretary;</text>
</subclause><subclause id="H1631B712521C4F63977E0BB820095D32"><enum>(III)</enum><text>fire
presuppression, rehabilitation, and construction of fire breaks; and</text>
</subclause><subclause id="HF580F888298A4C51AE67A8D129D12D84"><enum>(IV)</enum><text>grazing-related
activities, such as fencing and livestock watering.</text>
</subclause></clause><clause id="HC297DABC901747588E331CC1D6E84BEC"><enum>(ii)</enum><header>Wetland</header><text>In
the case of wetland, an easement conservation plan shall permit repairs,
improvements, and inspections of the land that are necessary to maintain
existing public drainage systems if the land is subsequently restored to the
condition required by the terms of the easement.</text>
</clause><clause id="H3EF642341A3A45C7A947C340008AA5F3"><enum>(iii)</enum><header>All enrolled
land</header>
<subclause id="H3EF55B6852F94982A6CE3692C0FF69B7"><enum>(I)</enum><header>In
general</header><text>In the case of all enrolled land, the easement
conservation plan shall permit the owner—</text>
<item id="H99672F82202F423D9DFBC6CCBAF9764B"><enum>(aa)</enum><text>to
conduct any activities that are inherent and necessary to rights that are
reserved to the owner under the terms of the easement or 30-year contract and
have been identified as compatible use in the easement conservation
program;</text>
</item><item id="H8DD7502550664586B0C1364DDEB710EA"><enum>(bb)</enum><text>to
control public access; and</text>
</item><item id="H81CC928F404248EDB6D69306849E126A"><enum>(cc)</enum><text>in
accordance with subclause (II), the right to undeveloped recreational uses,
including undeveloped hunting and fishing and leasing of those rights for
economic gain, pursuant to applicable State and Federal laws (including
regulations).</text>
</item></subclause><subclause id="H45E4943C582A4BF6B8630AF481BBF29E"><enum>(II)</enum><header>Undeveloped
recreational uses</header><text>Undeveloped recreational uses under subclause
(I)(cc)—</text>
<item id="H075AD82EBF974256A6F54EC8D07FE2C1"><enum>(aa)</enum><text>shall be
consistent with the long-term protection and enhancement of the conservation
purposes and other natural values of the easement area; and</text>
</item><item id="H05F0B9EAB7424676A2BC58F3E2059D7B"><enum>(bb)</enum><text>may
include hunting equipment, such as tree stands and hunting blinds that are
rustic and customary for the locale, as determined by the Secretary.</text>
</item></subclause></clause></subparagraph><subparagraph id="H99F3A5D79C564E85AA4EB2AF94B59AEE"><enum>(E)</enum><header>Prohibited
activities</header><text>An easement conservation plan shall identify the
following activities as prohibited:</text>
<clause id="H3A02D7BB6FE148449A70FCE329C54112"><enum>(i)</enum><header>Grassland</header><text>In
the case of grassland, an easement conservation plan shall prohibit the
production of crops (other than hay or grass grown for biomass harvest), fruit
trees, vineyards, or any other agricultural commodity that is inconsistent with
maintaining grazing land.</text>
</clause><clause id="H4FEDA17580DE452795150909B8E5FCF9"><enum>(ii)</enum><header>Wetland</header><text>In
the case of wetland, an easement conservation plan shall prohibit—</text>
<subclause id="H64EC86E8AFDC43AEAF465E720A2E7CD2"><enum>(I)</enum><text>the alteration of
wildlife habitat and other natural features of the land, unless specifically
permitted by the easement conservation plan; and</text>
</subclause><subclause id="HFE420DB7D215401FA83946F742843ABE"><enum>(II)</enum><text>the spraying of
the land with chemicals or the mowing of the land, unless spraying or mowing
is—</text>
<item id="H99E584990E7F4A34B8433C14A1D9EA29"><enum>(aa)</enum><text>permitted by the
easement conservation plan to meet the habitat needs of specific wildlife
species; or</text>
</item><item id="H4B8AAAA1263A41B1A55E8C8A2096F7DD"><enum>(bb)</enum><text>necessary to
comply with Federal or State noxious weed control laws and emergency pest
treatment program.</text>
</item></subclause></clause><clause id="H5D34A6B5AA8147858A762E950CBBC1D7"><enum>(iii)</enum><header>All enrolled
land</header><text>In the case of all enrolled land, the easement conservation
plan shall prohibit—</text>
<subclause id="H7236C77A06034207AA1E1019892C7B6D"><enum>(I)</enum><text>any activities to
be carried out on the land of the owner that is immediately adjacent to, and
functionally related to, the land that is subject to the easement if the
activities will alter, degrade, or otherwise diminish the functional value of
the eligible land; and</text>
</subclause><subclause id="H818166A8E1AA491381DC9D9681EB4EE0"><enum>(II)</enum><text>the adoption of
any other practice that would tend to defeat the purposes of this subchapter,
as determined by the Secretary.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H59F6718123D7421F8D17F0F63CC0EA61"><enum>(3)</enum><header>Compatible uses
by the owner</header>
<subparagraph id="HA53185E60341482FBEC814D99E7B06CC"><enum>(A)</enum><header>In
general</header><text>Land enrolled in the program may be used for compatible
uses if the use is specifically permitted by an easement conservation plan and
consistent with the long-term protection and enhancement of the resources for
which the easement was established.</text>
</subparagraph><subparagraph id="HF710CA42D39D4DFBACBEB795A7996867"><enum>(B)</enum><header>Authorized
uses</header><text>The Secretary may authorize the use of the easement area for
compatible uses under the terms of the easement deed or contract, even if the
uses were not identified as compatible at the time of easement
enrollment.</text>
</subparagraph><subparagraph id="HB8F2E4E200F44EC3913C8436AAE92579"><enum>(C)</enum><header>Limitations</header>
<clause id="H0F73E10CF84F479DB2F42BE4687B3122"><enum>(i)</enum><header>In
general</header><text>Compatible use authorizations shall only be made if the
Secretary determines, in coordination with the State technical committee, that
the amount, timing, intensity, and duration of the compatible use ensures that
the purposes of the program will be achieved.</text>
</clause><clause id="H63C0923446FD4DAC9A6D99074CAB1A69"><enum>(ii)</enum><header>Inclusions</header><text>Compatible
uses under clause (i) may include managed haying and grazing for grassland
(including the managed harvesting of biomass) or timber harvesting or managed
harvesting of biomass of forest land.</text>
</clause></subparagraph></paragraph><paragraph id="HF2DB2490D6524AE788E6DD4D2C893ADB"><enum>(4)</enum><header>Additional terms
and conditions</header><text>A 30-year 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.</text>
</paragraph></subsection><subsection id="H4D551B8FB4454627BCC06446DFE6B954"><enum>(d)</enum><header>Compliance</header><text>On
a violation of the terms or conditions of a 30-year contract or easement under
this subchapter—</text>
<paragraph id="H926E346BA5B0419CA54C1725753B83B6"><enum>(1)</enum><text>the contract or
easement shall remain in force; and</text>
</paragraph><paragraph id="H47D0AC592D764378A1FA719BA9D4814C"><enum>(2)</enum><text>the Secretary may
require the owner to refund all or part of any payments received under the
program, with interest on the payments as determined appropriate by the
Secretary.</text>
</paragraph></subsection></section><section id="H42215972B91541E3AFEE0CE143F0F7E4"><enum>1237C.</enum><header>Duties of the
Secretary</header>
<subsection id="HD24FE07C2CD94470895E5E8EA51EC008"><enum>(a)</enum><header>In
general</header><text>In return for the granting of an easement by an owner
under this subchapter, the Secretary shall—</text>
<paragraph id="H1EC7D781C63D483FAF3441A8BD30FAFD"><enum>(1)</enum><text>share the cost of
carrying out the establishment of conservation measures and practices,
including necessary maintenance activities, as described in the easement
conservation plan associated with the easement to the extent that the Secretary
determines that cost sharing is appropriate and in the public interest;
and</text>
</paragraph><paragraph id="H92D0C0AB8A3C4CB592D5C962CA5C5889"><enum>(2)</enum><text>provide necessary
technical assistance to assist owners in complying with the terms and
conditions of the easement and the easement conservation plan.</text>
</paragraph></subsection><subsection id="H83985965499146EBB7D8D8CF70CA1605"><enum>(b)</enum><header>Ranking of
offers</header><text>When evaluating offers from owners, the Secretary may
consider—</text>
<paragraph id="H4DC863C6154341338BCF6EEF1D637124"><enum>(1)</enum><text>the
cost-effectiveness of each easement or other interest in the eligible land, so
as to maximize the environmental benefits per dollar expended;</text>
</paragraph><paragraph id="H59D98FD19B4D41A0983F62938A46EFF2"><enum>(2)</enum><text>whether the owner
or another individual or legal entity is offering to contribute financially to
the cost of the easement or other interest in the land to leverage Federal
funds;</text>
</paragraph><paragraph id="HB4DFE84B5BA046C48A297CAE3B78FB8B"><enum>(3)</enum><text>the conservation
and wildlife habitat benefits of obtaining an easement or other interest in the
land;</text>
</paragraph><paragraph id="HF981EE8B4F134B67A02BD6CE4ECCD666"><enum>(4)</enum><text>the relative
threat of conversion of the land to development or row cropping, as
applicable;</text>
</paragraph><paragraph id="HF03A670942A54FB4A92B8CD168525F86"><enum>(5)</enum><text>the extent to
which the purposes of the easement program would be achieved on the land
offered for enrollment; and</text>
</paragraph><paragraph id="H959285169CA14C5EBE5B8682CBBB94A8"><enum>(6)</enum><text>other factors the
Secretary determines are appropriate to select among offers with similar
resource concerns and objectives.</text>
</paragraph></subsection><subsection id="H347AE206D5264D8EA8C056A56ED7225D"><enum>(c)</enum><header>Easement
priority</header><text>In carrying out this subchapter, to the extent
practicable taking into consideration costs and future agricultural and food
needs, the Secretary shall give priority—</text>
<paragraph id="H80C2EBA6AC7E44D4B7F41BE5EE09B20C"><enum>(1)</enum><text>to obtaining
permanent conservation easements before shorter-term conservation easements;
and</text>
</paragraph><paragraph id="HB96F333082314311AB510550782D87A9"><enum>(2)</enum><text>in consultation
with the Secretary of the Interior, to acquiring easements based on the value
of the easements for protecting vulnerable land and protecting and enhancing
habitat for migratory birds and other wildlife.</text>
</paragraph></subsection><subsection id="H23C12206607B41C6BEB776731F3F6B3C"><enum>(d)</enum><header>Technical
assistance</header><text>The Secretary shall provide owners with technical
assistance to assist the owners in complying with the terms of the easement,
30-year contract, and associated easement conservation plans under the
program.</text>
</subsection><subsection id="H7CE9FE591FA14FA39B466B562BC45877"><enum>(e)</enum><header>Payments to
others</header><text>If an owner 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.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H3E045D863E0942618FBAE4BA43E3A569"><enum>1237D.</enum><header display-inline="yes-display-inline">Payments</header>
<subsection commented="no" display-inline="no-display-inline" id="HC3ED6C7959B74D8EAA42023CDCA9E36B"><enum>(a)</enum><header>In
general</header><text>Effective on the date of enactment of the
<short-title>Rural Economic Farm and Ranch Sustainability
and Hunger Act of 2011</short-title>, the Secretary shall pay as compensation
for a permanent conservation easement acquired under this subchapter the lowest
of—</text>
<paragraph id="H63BF3FC2F95D43C2BFB33B1D7F68F565"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="H6B18963D297740D09B5A0550967BDACC"><enum>(2)</enum><text>the amount
corresponding to a geographical cap, as determined by the Secretary in
regulations; or</text>
</paragraph><paragraph id="H65961ABD29DA4926920B65E6AE2BCABF"><enum>(3)</enum><text>the offer made by
the owner.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE516AB2A1C1A49B59196678C4443D603"><enum>(b)</enum><header>Form of
payment</header><text>Compensation for an easement shall be provided by the
Secretary in the form of a cash payment, in an amount determined under
subsection (a) and specified in the easement agreement.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HCE0F0BA7C7434AAD97597DE9569F5051"><enum>(c)</enum><header>Payment schedule
for easements</header>
<paragraph id="H7464E06E811E4F54ADAC950E08E21282"><enum>(1)</enum><header>Easements valued
at $500,000 or less</header><text>For easements valued at $500,000 or less, the
Secretary may provide easement payments in not more than 30 annual
payments.</text>
</paragraph><paragraph id="HD98D36245F78447280398BE8416A9E8D"><enum>(2)</enum><header>Easements in
excess of $500,000</header>
<subparagraph id="H920FF0AEC0784C2C868DB2912A34874E"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), 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.</text>
</subparagraph><subparagraph id="HD272D3D12F624D07AC501FF74427FBC7"><enum>(B)</enum><header>Exception</header><text>If
the Secretary determines it would further the purposes of the program, the
Secretary may make a lump sum payment for an easement described in subparagraph
(A).</text>
</subparagraph></paragraph></subsection><subsection id="H703B43915A8C4D3EA5E6F12F5B29F0B4"><enum>(d)</enum><header>Restoration
payments</header>
<paragraph id="H772BB7DAF07C40D5986698C2699C374F"><enum>(1)</enum><header>Payment
rates</header><text>In making restoration payments, the Secretary shall seek to
minimize Federal costs and may offer—</text>
<subparagraph id="H3B38E10733734F6F9DD0E565525778AA"><enum>(A)</enum><text>in the case of a
permanent easement, to pay an amount that is not more than 90 percent of the
eligible costs; and</text>
</subparagraph><subparagraph id="HB0334D28DA90449FBD039D258D9C402A"><enum>(B)</enum><text>in the case of a
nonpermanent easement described in section 1237A(a)(2)(A)(ii) or a 30-year
contract, to pay an amount that is not more than 70 percent of the eligible
costs.</text>
</subparagraph></paragraph><paragraph id="H3618ADC525414C2BAB79A7CC0A83C01D"><enum>(2)</enum><header>Restoration
offset</header><text>The Secretary shall deduct as a closing cost from the
easement compensation to be paid, the estimated share of the owner of the
restoration costs, and that payment shall be—</text>
<subparagraph id="H96B99F8E68CF48E5A4666E9ECD67896A"><enum>(A)</enum><text>determined
complete and final for purposes of meeting the cost-share responsibility of the
owner; and</text>
</subparagraph><subparagraph id="HDDD7531D138343A1BE2BE30F3BAA5130"><enum>(B)</enum><text>administered using
the restoration funds of the Secretary.</text>
</subparagraph></paragraph></subsection><subsection id="HAA2CDF962C4A42EAAB96ADB10FE9B09B"><enum>(e)</enum><header>Exemption from
automatic sequester</header><text>Notwithstanding any other provision of law,
no order issued under section 252 of the Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 902) shall affect any payment under this
subchapter.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HE3C68AF74ACC402EB60A3AD43473E138"><enum>1237E.</enum><header display-inline="yes-display-inline">Delegation of duty</header>
<subsection commented="no" display-inline="no-display-inline" id="H6390B9126DD34A69BC9BDE91050F659B"><enum>(a)</enum><header>Definition of
eligible entity</header><text>In this section, the term <term>eligible
entity</term> means—</text>
<paragraph id="H30BC08E947414C9095027E301B8E1757"><enum>(1)</enum><text>an agency of State
or local government or an Indian tribe; or</text>
</paragraph><paragraph id="H27B6A5F38060424A9662411643D9BC73"><enum>(2)</enum><text>an organization
that—</text>
<subparagraph id="H5D48C73A133C46B38F65EE3BF6CF097C"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="HC472EFE3F1DC49268A68826B64854236"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph id="H9BDB66BB7CDD4BD0B5591938993392BB"><enum>(C)</enum><text>is described
in—</text>
<clause id="HCD046E358DAC46679167EE359289AD5A"><enum>(i)</enum><text>paragraph (1) or
(2) of section 509(a) of that Code; or</text>
</clause><clause id="H0EE1DDDCFA9B457086592CB2CCB9D12F"><enum>(ii)</enum><text>in section
509(a)(3) of that Code, and is controlled by an organization described in
section 509(a)(2) of that Code.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD7B9B4EDCCC74BA1901B568D8CF9AEF1"><enum>(b)</enum><header>Authority To
delegate</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9F3A17C9974A4C5EA4761B17E49EB2E5"><enum>(1)</enum><header>In
general</header><text>The Secretary may delegate a duty under the
program—</text>
<subparagraph id="H2052CFDED8EC403A99E0681B67552135"><enum>(A)</enum><text>by transferring
title of ownership to an easement originally acquired by the Secretary to an
eligible entity to hold and enforce; or</text>
</subparagraph><subparagraph id="H2012206222584252B600C9FD2BCFADEA"><enum>(B)</enum><text>by entering into a
cooperative agreement with an eligible entity for the eligible entity to own,
write, and enforce an easement that the Secretary determines will further the
purposes of the program.</text>
</subparagraph></paragraph><paragraph id="H76B5E4E96CA84C7B91ADF947CF1CFB34"><enum>(2)</enum><header>Delegation of
easement administration of easements acquired by the Secretary</header>
<subparagraph id="H96223FAD32214B10B3BCF0598E4B4316"><enum>(A)</enum><header>In
general</header><text>The Secretary may delegate any of the easement
management, monitoring, and enforcement responsibilities of the Secretary under
the program to Federal or State agencies or other eligible entities that the
Secretary determines have the appropriate authority, expertise, and resources
necessary to carry out the delegated responsibilities.</text>
</subparagraph><subparagraph id="HDDEE6CA9C03F49A98C000A40C48E7CD2"><enum>(B)</enum><header>Secretarial
discretion</header><text>The Secretary may determine that the delegation to a
particular agency or eligible entity is appropriate for 1 type of easement and
not appropriate for another type of easement, depending on the resource
purposes for which an easement is acquired.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAD0A2CD83BA247D7A8BC11F89F067088"><enum>(3)</enum><header>Transfer of
title of ownership</header>
<subparagraph id="HE7DA81E3BF2E41A78C518DAA42E69A6C"><enum>(A)</enum><header>Transfer</header><text>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—</text>
<clause id="HE31ABE36C91E4336B1DD113CDAF47218"><enum>(i)</enum><text>the Secretary
determines that the transfer will promote long-term protection of the
easement;</text>
</clause><clause id="H574978D7E7AB42D38CDC115342134A0F"><enum>(ii)</enum><text>the owner
authorizes the eligible entity to hold or enforce the easement; and</text>
</clause><clause id="H02A4A43F18704276BD233DA11075D6F0"><enum>(iii)</enum><text>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
determined by the Secretary.</text>
</clause></subparagraph><subparagraph id="H48B1B2A5B2E4425E8B5747DA28E087C1"><enum>(B)</enum><header>Application</header><text>An
eligible entity that seeks to hold and enforce an easement that has been
acquired by the Secretary shall apply to the Secretary for approval.</text>
</subparagraph><subparagraph id="H87A9062EDC374F93AA135C9AA2D82903"><enum>(C)</enum><header>Approval by
secretary</header><text>The Secretary may approve an application described in
subparagraph (B) if the eligible entity—</text>
<clause id="H7F02808F6CDE4D4AA229DFC46D3A7E94"><enum>(i)</enum><text>has the relevant
experience necessary for the particular resources to be protected, as
appropriate for the application, to administer an easement previously acquired
by the Secretary;</text>
</clause><clause id="HE91301ADC4F14EC5A7F3A8683ADF67A6"><enum>(ii)</enum><text>has a charter
that describes a commitment to furthering the particular conservation purposes
for which an easement was originally acquired by the Secretary; and</text>
</clause><clause id="HEFD597D070DC4C00B28EA75333FBCA97"><enum>(iii)</enum><text>has the
resources necessary to effectuate the purposes of this subchapter.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H9290813E98354878B4E0F7FDC123CD34"><enum>(c)</enum><header>Cooperative
agreements</header>
<paragraph id="H01BADF6FAB4949C4932990081BFE2647"><enum>(1)</enum><header>Authorized;
terms and conditions</header><text>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.</text>
</paragraph><paragraph id="HEDA45A03FFA94964B1FD2CD3868CA889"><enum>(2)</enum><header>Minimum
requirements</header><text>At a minimum, the cooperative agreement
shall—</text>
<subparagraph id="H13974D6625FB433A85B5EA6067657AC4"><enum>(A)</enum><text>specify the
qualification of the eligible entity to carry out the responsibilities of the
eligible entity under the program, including acquisition, monitoring,
enforcement, and implementation of management policies and procedures that
ensure the long-term integrity of the easement protections;</text>
</subparagraph><subparagraph id="HA060C6DE22714C08981E2376F3B699D4"><enum>(B)</enum><text>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 Secretary;</text>
</subparagraph><subparagraph id="HD8AE3F21D3F74C92B3F60A46F79D800D"><enum>(C)</enum><text>specify the right
of the Secretary to conduct periodic inspections to verify the enforcement by
the eligible entity of the easement;</text>
</subparagraph><subparagraph id="H785FAB782497419A8EED2714F5322D56"><enum>(D)</enum><text>subject to
subparagraph (E), identify a specific project or a range of projects to be
funded under the agreement;</text>
</subparagraph><subparagraph id="HD3A8BFB37F654374998BFF3ABA67663C"><enum>(E)</enum><text>allow, upon mutual
agreement of the parties, substitution of qualified projects that are
identified at the time of substitution;</text>
</subparagraph><subparagraph id="HDB121133426941D5ABDAF2CF62DADC5C"><enum>(F)</enum><text>specify the manner
in which the eligible entity will evaluate and report the use of funds to the
Secretary;</text>
</subparagraph><subparagraph id="H9DD2BA4E8A7B42518413DDB5BE244505"><enum>(G)</enum><text>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;
and</text>
</subparagraph><subparagraph id="HF69829893EC846E9AF744E9E35FB1FAA"><enum>(H)</enum><text>provide for a
schedule of payments to an eligible entity, as agreed to by the Secretary and
the eligible entity.</text>
</subparagraph></paragraph><paragraph id="H575645FF58C549ADB6C73926B6E51C6B"><enum>(3)</enum><header>Cost
sharing</header>
<subparagraph id="H5284153A8D174B38B1713C69460F9C77"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="H8776EBAB0E64468497AF0FE4911C2FB5"><enum>(B)</enum><header>Minimum share by
eligible entity</header>
<clause id="H8C59FFE03E274EAC9A4A4299A4769D04"><enum>(i)</enum><header>In
general</header><text>The eligible entity shall be required to provide a share
of the purchase price at least equivalent to that provided by the
Secretary.</text>
</clause><clause id="HFFBC90A8747642E69FF734632CE4A45E"><enum>(ii)</enum><header>Amount of
share</header><text>The Secretary shall base the share on the amount that the
Secretary would have paid for an easement acquired directly by the Secretary
under this subchapter.</text>
</clause></subparagraph><subparagraph id="HD660AA8708E24DB19DAECD4DC22DE793"><enum>(C)</enum><header>Priority</header><text>The
Secretary may accord a higher priority to proposals from eligible entities that
leverage a greater share of the purchase price of the easement.</text>
</subparagraph><subparagraph id="HC9FC2B84E717463C8C12C35B2C2D21FA"><enum>(D)</enum><header>Minimization of
Federal expense</header><text>In determining cost-share levels, the
Secretary—</text>
<clause id="H4D6D0AFAA65D4E7D9ADE433ED5B441E9"><enum>(i)</enum><text>shall seek to
minimize Federal costs; and</text>
</clause><clause id="HFEB5D5F28692491696C1A12DBF4114D6"><enum>(ii)</enum><text>may provide an
amount less than the maximum cost-share authorized under this section.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H339F0B8E7C274048A17B5103C10CC219"><enum>(d)</enum><header>Certification of
eligible entities</header>
<paragraph id="H94A6455B8D0346B897D68427AC4DC566"><enum>(1)</enum><header>Certification
process</header><text>The Secretary shall establish a process under which the
Secretary may—</text>
<subparagraph id="H56EF97FEB9AD497F8C0D6A88153FE773"><enum>(A)</enum><text>directly certify
eligible entities that meet established criteria;</text>
</subparagraph><subparagraph id="HB44B07481ACE4946936E1E8E8E01CCCA"><enum>(B)</enum><text>enter into
long-term agreements with certified entities; and</text>
</subparagraph><subparagraph id="HC67E7BF4149B48019551A094CE6D80EF"><enum>(C)</enum><text>accept proposals
for cost-share assistance to certified entities for the purchase of
conservation easements throughout the duration of the agreements.</text>
</subparagraph></paragraph><paragraph id="H65F07F86E4324FBDA6FE3C2D4277890D"><enum>(2)</enum><header>Certification
criteria</header><text>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—</text>
<subparagraph id="H184C6085539C4CC9864953EC8E359756"><enum>(A)</enum><text>a plan for
administering easements that is consistent with the purpose of this
subchapter;</text>
</subparagraph><subparagraph id="H23D841A493B4432E95E2D1E0F00ABE15"><enum>(B)</enum><text>the capacity and
resources to monitor and enforce easements; and</text>
</subparagraph><subparagraph id="HF8F25298BF0E4F328A8B8DA88969C9E9"><enum>(C)</enum><text>policies and
procedures to ensure—</text>
<clause id="H5C3916209AF840B585BCE389A1D5CA35"><enum>(i)</enum><text>the long-term
integrity of easements;</text>
</clause><clause id="H202F0EAA790143428EB61F83AF5BD784"><enum>(ii)</enum><text>timely completion
of acquisitions of easements; and</text>
</clause><clause id="HF854EB3B4AB04BFEA65CD2FEE78CE4C5"><enum>(iii)</enum><text>timely and
complete evaluation and reporting to the Secretary on the use of funds provided
by the Secretary under the program.</text>
</clause></subparagraph></paragraph><paragraph id="H34F2792A33DB409CAF4D1BF125F78615"><enum>(3)</enum><header>Review and
revision</header>
<subparagraph id="H959EA8A573CE4DB880399DEED2843124"><enum>(A)</enum><header>Review</header><text>The
Secretary shall conduct a review of eligible entities certified under paragraph
(1) at least every 3 years to ensure that the entities are meeting the criteria
established under paragraph (2).</text>
</subparagraph><subparagraph id="HF90C58C31E334C039425770A4B317E17"><enum>(B)</enum><header>Revocation</header><text>If
the Secretary finds that the certified entity no longer meets the criteria
established under paragraph (2), the Secretary may—</text>
<clause id="H2F62762A1F4A4C25A4EF8C2BE125816C"><enum>(i)</enum><text>allow the
certified entity a specified period of time of not less than 180 days in which
to take such actions as may be necessary to meet the criteria; and</text>
</clause><clause id="HABFAE201A1D74F55A159E23F77B26609"><enum>(ii)</enum><text>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).</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF869FFC71A6C40BD807FF0F2774F8657"><enum>(e)</enum><header>Protection of
Federal investment</header>
<paragraph commented="no" display-inline="no-display-inline" id="H52F8C647B6004AD3BC33153B098EC69E"><enum>(1)</enum><header>In
general</header><text>If delegating a duty under this section, the Secretary
shall ensure that the terms of an easement include a right of enforcement for
the Department.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8C3C71370847465D8390DB62940100DE"><enum>(2)</enum><header>Violation</header><text>If
an agency or other eligible entity violates the terms or conditions of a
delegated responsibility or associated cooperative agreement entered into under
this section—</text>
<subparagraph id="HB7074DEEC4264BC6A89C11A2D28F7F07"><enum>(A)</enum><text>the delegation,
and any associated cooperative agreement, may be revoked or terminated;
and</text>
</subparagraph><subparagraph id="H02EA70EF8BC94A1786354B492FB9F980"><enum>(B)</enum><text>the Secretary may
required the agency or other eligible entity to refund all or part of any
payments received by the agency or eligible entity under the program, with
interest on the payments as determined appropriate by the Secretary.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H7257572E6E8D4ACF9C7A03FCBFC2C0B9"><enum>1237F.</enum><header display-inline="yes-display-inline">Changes in ownership and agreement
modification</header>
<subsection commented="no" display-inline="no-display-inline" id="HA720480FB3324ABF875C080F74996F41"><enum>(a)</enum><header>Limitations</header><text>No
easement shall be created under this subchapter on land that has changed
ownership during the preceding 2-year period unless the Secretary determines
that—</text>
<paragraph id="H1CE28CF260CA4F79A078FD28F067530B"><enum>(1)</enum><text>the new ownership
was acquired by will or succession as a result of the death of the previous
owner;</text>
</paragraph><paragraph id="H8CF62D5726F04459926C7524D2DC9B09"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H02F120B7BB904698B5569CF6134B18C6"><enum>(A)</enum><text>the ownership change
occurred because of foreclosure on the land; and</text>
</subparagraph><subparagraph id="HE0147BBDA4FA443B9204409A42E2A1AC" indent="up1"><enum>(B)</enum><text>immediately before the foreclosure,
the owner of the land exercises a right of redemption from the mortgage holder
in accordance with State law;</text>
</subparagraph></paragraph><paragraph id="HB9A2EC42B9A14231A00F35142D9F5BAF"><enum>(3)</enum><text>the land was
acquired under circumstances that give adequate assurances that the land was
not acquired for the purposes of placing the land in the program; or</text>
</paragraph><paragraph id="HE28B513C0F23468193594421CFA63636"><enum>(4)</enum><text>the new ownership
was acquired by the sibling, parent, child, or grandchild of the previous
owner.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H14F054728AAE446E9DCF95347FD920B5"><enum>(b)</enum><header>Modification,
exchange, and termination</header>
<paragraph id="HE7A94D70BB884064863FACB493A3AB38"><enum>(1)</enum><header>In
general</header><text>The Secretary may subordinate, exchange, terminate, or
modify any easement or other interest in land administered by the Natural
Resources Conservation Service, either directly or on behalf of the Commodity
Credit Corporation, when the Secretary determines that—</text>
<subparagraph id="HCA5F77FF0FAE43D8B6A0FBC5E301A470"><enum>(A)</enum><text>it is in the
interest of the Federal Government to subordinate, exchange, modify, or
terminate the easement or other interest in the land;</text>
</subparagraph><subparagraph id="H881ACA5F2D2243758A324DE02221A1D4"><enum>(B)</enum><text>the action will
address a compelling public need or will further the practical administration
of the program;</text>
</subparagraph><subparagraph id="HCC821932F2E44F1FB7FE1DE4EFDFB976"><enum>(C)</enum><text>the action will
result in comparable conservation value and equal or greater economic value to
the United States; and</text>
</subparagraph><subparagraph id="HA4FB0587E53B4715BA672582FD5F1E22"><enum>(D)</enum><text>the current owner
agrees to the modification.</text>
</subparagraph></paragraph><paragraph id="HE830711BB0AD4B569415998FBAFC38C1"><enum>(2)</enum><header>Notice</header><text>At
least 90 days before taking any action to terminate an easement or other
interest in land, the Secretary shall provide written notice of the action to
the Committee on Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate.</text>
</paragraph></subsection><subsection id="H4C19B2F9FAD8418DB1DF8F4A8EDA08EB"><enum>(c)</enum><header>Enforceability</header><text>An
easement, contract, or other agreement entered into under the program shall
continue to be legally enforceable on the land for the duration of the
easement, contract, or other agreement, regardless of whether the ownership of
the land changes.</text>
</subsection></section><section id="H0CB0CB6B6E4C4FD38FDA3F656BD8E836"><enum>1237G.</enum><header>Protections</header>
<subsection id="HC987D91F07754106A46A6DCD2E93E9B9"><enum>(a)</enum><header>Protections</header><text>In
the case of an owner that enrolls land in the program under an agreement that
includes protection of vulnerable species and whose conservation activities
result in a net conservation benefit for listed, candidate, or other species,
the Secretary shall make available to the owner safe harbor or similar
assurances and protection under—</text>
<paragraph id="HCFE93729C7B2498BAC3C6237BF8E35E1"><enum>(1)</enum><text>section 7(b)(4) of
the <act-name parsable-cite="ESA">Endangered Species Act of 1973</act-name> (16
U.S.C. 1536(b)(4)); or</text>
</paragraph><paragraph id="HE4FCF246F5F5430BA659754144281234"><enum>(2)</enum><text>section 10(a)(1)
of that Act (16 U.S.C. 1539(a)(1)).</text>
</paragraph></subsection><subsection id="H51FD2F7AEB7F4603B3182BCCEC73BE2B"><enum>(b)</enum><header>Measures</header><text>If
protection under subsection (a) requires the taking of measures that are in
addition to the measures covered by the applicable restoration plan agreed to
under the program, the cost of the additional measures, as well as the cost of
any permit, shall be considered part of the restoration plan for purposes of
financial assistance under the program.</text>
</subsection></section><section id="H1C98761A3273498AB105B8B02218FF10"><enum>1237H.</enum><header>Funding</header>
<subsection id="H2CC72E5DF6BE4FEBB84C7FB7D3B88A83"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Of the funds of the
Commodity Credit Corporation, the Secretary shall use to carry out this
subchapter $1,000,000,000 for each fiscal year.</text>
</subsection><subsection id="H90D9B33D8DF24F2CB38E5D211E1CB037"><enum>(b)</enum><header>Additional
funding</header><text display-inline="yes-display-inline">In addition to the
funds made available under subsection (a), there is authorized to be
appropriated to carry out this subchapter $500,000,000 for each fiscal
year.</text>
</subsection><subsection id="HB903A405BCE44CBEA7F420026BF4145A"><enum>(c)</enum><header>Use of
funds</header><text display-inline="yes-display-inline">Of amounts made
available to carry out this section for a fiscal year, the Secretary shall
use—</text>
<paragraph id="H6394B0ADE0C44683B3735BD67986FB7D"><enum>(1)</enum><text>not less than 5
percent of the funds to enroll forest land in the program eligible under
section 1237A(b)(4);</text>
</paragraph><paragraph id="HD4382D0F11474FD68B5D1ACFC398AA09"><enum>(2)</enum><text>not more than 5
percent to enroll prime and productive agricultural land eligible under section
1237A(b)(5);</text>
</paragraph><paragraph id="H2344D0722F8E41C0836AFBF9D5980626"><enum>(3)</enum><text>not more than 5
percent to enroll land eligible under section 1237E(c); and</text>
</paragraph><paragraph id="H20B979BBD3C241BDB749BB2E79EA2BAE"><enum>(4)</enum><text>not less than 8
percent of the funds to provide technical assistance.</text>
</paragraph></subsection><subsection id="HEA7E1ACBB8D0487D81AD08B086DEE3C8"><enum>(d)</enum><header>Acceptance of
contributions</header><text>Notwithstanding any other provision of law, the
Secretary may accept and use contributions of non-Federal funds to make
payments under this
section.</text>
</subsection></section></subchapter><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H5B9E9A0C020C4554B71AA8EDAFE2D0B2"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="H412022F942D54B65A8C10120A62DCDD4"><enum>(1)</enum><text>Chapter 1 of
subtitle D of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.) is amended
in the chapter heading by inserting <quote><header-in-text level="chapter" style="OLC">, Conservation Reserve, and Easement Benefits
Program</header-in-text></quote>.</text>
</paragraph><paragraph id="HABFD8D2AFB7D403CB1631B941D835025"><enum>(2)</enum><text>Section 1238A of
the Food Security Act of 1985 (16 U.S.C. 3838a) is amended—</text>
<subparagraph id="HEE73003FAE69420382D4135C586F7EFB"><enum>(A)</enum><text>in subsection
(b)(3)—</text>
<clause id="H19528799BE6640E9B2024A77AB86722A"><enum>(i)</enum><text>by
striking subparagraphs (B) and (C) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H0BAE466734EE4B40AB1D25782776B1C7" style="OLC">
<subparagraph id="H9022F9088E3F415896157E4A27225E4B"><enum>(B)</enum><header>Easement
benefits program</header><text>Land enrolled in the easement benefits program
established under subchapter C of chapter 1 shall not be eligible for
enrollment in the conservation security
program.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="HA1EF9F5D4A6F45499C60B0CC406D5661"><enum>(ii)</enum><text>by
redesignating subparagraph (D) as subparagraph (C); and</text>
</clause></subparagraph><subparagraph id="H44F70E1DF09A4956886D723146EEF17B"><enum>(B)</enum><text>in subsection
(e)(2)(B)(ii)(I)(cc), by striking <quote>wetlands reserve program</quote> and
inserting <quote>easement benefits program</quote>.</text>
</subparagraph></paragraph><paragraph id="H8E734D53B4CC486F924BDEEA768EE8AF"><enum>(3)</enum><text>Section 1252(c) of
the Food Security Act of 1985 (16 U.S.C. 3851(c)) is amended—</text>
<subparagraph id="H86561FE439744FA5AF01E5EAFFBAF060"><enum>(A)</enum><text>by striking
<quote>(c) <header-in-text level="subsection" style="OLC">Funding
source</header-in-text>.—</quote> and all that follows through <quote>the
Secretary</quote> in paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H4286522F9B944DBDAA504803C2D1833A" style="OLC">
<subsection id="HBF6BBD7169C549E4A04CDF581E0E21C7"><enum>(c)</enum><header>Funding
source</header><text>The Secretary</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H98D07AAD20E04A33BA380919F21FAC8B"><enum>(B)</enum><text>by striking
paragraph (2).</text>
</subparagraph></paragraph></subsection></section></subtitle><subtitle id="HC0D8629BD2C446C38B17078A462C8A29"><enum>C</enum><header>Working land
program</header>
<section id="HD3C5C058CE3647EFBAD3063730F7EC77"><enum>2201.</enum><header>Working land
program</header>
<subsection id="H096DE5DA800D4E149EE8C50CF2672F83"><enum>(a)</enum><header>In
general</header><text>Title XII of the Food Security Act of 1985 (16 U.S.C.
3801 et seq.) is amended—</text>
<paragraph id="H160F6ACF2FB64A348DB49EA98CDA38B4"><enum>(1)</enum><text>by striking
subchapter B of chapter 2 of subtitle D (16 U.S.C. 3838d et seq.);</text>
</paragraph><paragraph id="HB2921B54B5E941FD9B5FDB9CDFD2D349"><enum>(2)</enum><text>by striking
section 1240N (16 U.S.C. 3839bb–1); and</text>
</paragraph><paragraph id="H3B7F97AB9B6D445288F8DBF503DECFEC"><enum>(3)</enum><text>by striking
chapter 4 of subtitle D (16 U.S.C. 3839aa) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HF7F0FF5D5C754796ABA1CF5E2A65CEA1" style="OLC">
<chapter id="H9230487C408448D9A2C43ACC0F528D38"><enum>4</enum><header>Working land
program</header>
<section id="HE07FE263DF0345A8A53BC77D4423D7D4"><enum>1240.</enum><header>Working land
program</header>
<subsection id="H175FA7261798436B8390C3B12A31E178"><enum>(a)</enum><header>Purposes</header><text>The
Secretary shall establish a working land program to promote agricultural
production, forest management, and environmental quality as compatible goals,
and to optimize environmental benefits, by—</text>
<paragraph id="H394CD0FD40EE4362AC6CED510A6CD86C"><enum>(1)</enum><text>assisting
producers in complying with local, State, and national regulatory requirements
concerning—</text>
<subparagraph id="H87CD1B6AF3B647D3B3523B11F3C77EAE"><enum>(A)</enum><text>soil, water, and
air quality;</text>
</subparagraph><subparagraph id="H0C764B76B9B647F7975D387EBD43F37A"><enum>(B)</enum><text>wildlife habitat;
and</text>
</subparagraph><subparagraph id="HCB24E0879BF641D8A5D378C6B4F187C8"><enum>(C)</enum><text>surface and ground
water conservation;</text>
</subparagraph></paragraph><paragraph id="H4C23C8A848604F8C9378BFF2D66BA6F2"><enum>(2)</enum><text>avoiding, to the
maximum extent practicable, the need for resource and regulatory programs by
assisting producers in protecting soil, water, air, and related natural
resources and meeting environmental quality criteria established by Federal,
State, tribal, and local agencies;</text>
</paragraph><paragraph id="HF10C6C1056AB498E8A4C668FF44763F2"><enum>(3)</enum><text>providing flexible
assistance to producers to install and maintain conservation practices that
sustain food and fiber production while—</text>
<subparagraph id="H06351D85C2C74E5F8D4C16308B8F2F6A"><enum>(A)</enum><text>enhancing soil,
water, and related natural resources, including grazing land, forestland,
wetland, and wildlife; and</text>
</subparagraph><subparagraph id="H6F395CA50005443AB8141AE48059B244"><enum>(B)</enum><text>improving energy
efficiency and increasing use of renewable energy;</text>
</subparagraph></paragraph><paragraph id="H38EC0102F4F44900BCD505873112CCA5"><enum>(4)</enum><text>assisting
producers to make beneficial, cost-effective changes to production systems
(including conservation practices relating 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</text>
</paragraph><paragraph id="HBFE77FF2631D46498945BE6376191793"><enum>(5)</enum><text>consolidating and
streamlining conservation planning and regulatory compliance processes to
reduce administrative burdens on producers and the cost of achieving
environmental goals.</text>
</paragraph></subsection><subsection id="H0EACBD7733E84931966688DB64AAD323"><enum>(b)</enum><header>Definitions</header><text>In
this chapter:</text>
<paragraph id="H8CA5005ED125481EA3CB40EF623D46FC"><enum>(1)</enum><header>Conservation
activities</header>
<subparagraph id="HD31B26C816FA418B9E6D8ACA5D696D2D"><enum>(A)</enum><header>In
general</header><text>The term <term>conservation activities</term> means
conservation systems, practices, or management measures that are designed to
address a resource concern.</text>
</subparagraph><subparagraph id="HDFF8DA17CE824981AB5939BABBDACE68"><enum>(B)</enum><header>Inclusions</header><text>The
term <term>conservation activities</term> includes—</text>
<clause id="HADDA6E45C498452D8BCC6C5F5CA47E7D"><enum>(i)</enum><text>structural
measures, vegetative measures, and land management measures, including
agriculture drainage management systems, as determined by the Secretary;
and</text>
</clause><clause id="H3517C8265ABC4D43BA5F267DF914E3F4"><enum>(ii)</enum><text>planning needed
to address a resource concern.</text>
</clause></subparagraph></paragraph><paragraph id="H001B83F79C4F46C9BAAA2D31580D59EC"><enum>(2)</enum><header>Eligible
land</header>
<subparagraph id="H87E9B6BF66A1439DAEEDF995C4381D2C"><enum>(A)</enum><header>In
general</header><text>The term <term>eligible land</term> means land on which
agricultural commodities, livestock, or forest-related products are
produced.</text>
</subparagraph><subparagraph id="HB3132FA4A79F4BAFB88CFBD3038721BF"><enum>(B)</enum><header>Inclusions</header><text>The
term <term>eligible land</term> includes—</text>
<clause id="HEA018AF66C0D42A090088EB2EE3E967A"><enum>(i)</enum><text>cropland;</text>
</clause><clause id="H716A2E1CEA1D46818CA06C2B1B3B86B1"><enum>(ii)</enum><text>grassland;</text>
</clause><clause id="H8302AA3E0C0F495C8667C1737A7E635F"><enum>(iii)</enum><text>rangeland;</text>
</clause><clause id="H5237BC9644E34D7195E134A530C6B28B"><enum>(iv)</enum><text>pasture
land;</text>
</clause><clause id="H90E1FB81F592400AA4C04D9A26D643FA"><enum>(v)</enum><text>nonindustrial
private forest land; and</text>
</clause><clause id="H952B87E292C84948809BFAC1A523C357"><enum>(vi)</enum><text>other
agricultural land (including cropped woodland, marshes, areas devoted to
aquaculture and associated waters, and agricultural land used or capable of
being used for the production of livestock) on which resource concerns relating
to agricultural production could be addressed through a contract under the
program, as determined by the Secretary.</text>
</clause></subparagraph><subparagraph id="H4DF58B2B4D8B4DCF9AF2C30FD162AD4D"><enum>(C)</enum><header>Exclusions</header><text>The
term <term>eligible land</term> does not include any land enrolled in—</text>
<clause commented="no" id="HE7A4665577F54B5697FCB6703F52627C"><enum>(i)</enum><text>the conservation
reserve program under subchapter B of chapter 1; or</text>
</clause><clause commented="no" id="H6F9F9A5AB6D74C659E387A71306469EE"><enum>(ii)</enum><text>the easement
benefits program under subchapter C of chapter 1.</text>
</clause></subparagraph></paragraph><paragraph id="H413AB97D1EF941BEA0BBFDBFEC608E45"><enum>(3)</enum><header>Organic system
plan</header><text>The term <term>organic system plan</term> means an organic
plan approved under the national organic program established under the Organic
Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).</text>
</paragraph><paragraph id="HFEC1B9C2EC604B6F8F4042B60B1180A5"><enum>(4)</enum><header>Partner</header><text>The
term <term>partner</term> means any entity that enters into a partnership
agreement with the Secretary to carry out a program on a regional basis,
including—</text>
<subparagraph id="H8B06910D46F14073AA622F54BD0DC99F"><enum>(A)</enum><text>an agricultural or
silvicultural producer association or other group of such producers;</text>
</subparagraph><subparagraph id="HBFDB00F3BC384468886EC71BE1922D2B"><enum>(B)</enum><text>a State or unit of
local government; or</text>
</subparagraph><subparagraph id="H407E90C1BCCE4C188D930505E106227C"><enum>(C)</enum><text>an Indian
tribe.</text>
</subparagraph></paragraph><paragraph id="H9F4A598F01944F9DAE2D9795A1AF9068"><enum>(5)</enum><header>Partnership
agreement</header><text>The term <term>partnership agreement</term> means an
agreement between the Secretary and a partner to carry out a practice under the
program.</text>
</paragraph><paragraph id="HF3C4D15A0C444633889675F2F40282BF"><enum>(6)</enum><header>Payment</header><text>The
term <term>payment</term> means financial assistance provided for performing
practices under this chapter, including compensation for—</text>
<subparagraph id="HC6703B0546B8429EA55AA1A3021E75FB"><enum>(A)</enum><text>incurred costs
associated with planning, design, materials, equipment, installation, labor,
management, maintenance, or training; and</text>
</subparagraph><subparagraph id="HAEBC4A6E1961470285C52EA77B834E6F"><enum>(B)</enum><text>income forgone by
the producer.</text>
</subparagraph></paragraph><paragraph id="H98A1637F30DD4EFF89914FB14C7F7053"><enum>(7)</enum><header>Practice</header><text>The
term <term>practice</term> means 1 or more improvements and conservation
activities that are consistent with the purposes of the program, as determined
by the Secretary, including—</text>
<subparagraph id="H12C111DE95DC417BB5FBB1342C37579A"><enum>(A)</enum><text>improvements to
eligible land of the producer, including—</text>
<clause id="H30AF0534905A4A83AB52ADC18E5E9608"><enum>(i)</enum><text>structural
practices;</text>
</clause><clause id="H9419E6417D1E4CDC8A3F09681DBF5CA6"><enum>(ii)</enum><text>land management
practices;</text>
</clause><clause id="HD743F9DB3CB045ED9539CB40B927B132"><enum>(iii)</enum><text>vegetative
practices;</text>
</clause><clause id="HBC4461685BDC48DE8E8022BC0432577B"><enum>(iv)</enum><text>forest
management; and</text>
</clause><clause id="H8163ED0208E24188841E85793781BA8C"><enum>(v)</enum><text>other practices
that the Secretary determines would further the purposes of the program;
and</text>
</clause></subparagraph><subparagraph id="HF80688A4666B497F81E7852AA3412A5D"><enum>(B)</enum><text>conservation
activities involving the development of plans appropriate for the eligible land
of the producer, including—</text>
<clause id="H400AA89B288A4927A88397A3F0DA32E7"><enum>(i)</enum><text>comprehensive
nutrient management planning; and</text>
</clause><clause id="H6D517DB9D50848829B7A2A912E804ACE"><enum>(ii)</enum><text>other plans that
the Secretary determines would further the purposes of the program under this
part.</text>
</clause></subparagraph></paragraph><paragraph id="HB7055CFB292C4FAE975FB825F9F84982"><enum>(8)</enum><header>Priority
resource concern</header><text>The term <term>priority resource concern</term>
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.</text>
</paragraph><paragraph id="H7A421CCA8A914292902DD9FE0D9A0626"><enum>(9)</enum><header>Producer</header><text>The
term <term>producer</term> has the meaning given the term in section
1238.</text>
</paragraph><paragraph id="H1E18E36840E74800B8A560582CD9EE39"><enum>(10)</enum><header>Program</header><text>The
term <quote>program</quote> means the working land program established under
this chapter.</text>
</paragraph><paragraph id="H8D3A36D6AB6A4FB28192259326310CD6"><enum>(11)</enum><header>Resource
concern</header><text>The term <term>resource concern</term> means a specific
natural resource impairment or problem, as determined by the Secretary,
that—</text>
<subparagraph id="H8A0E7BDF65004BD6BAF9BBEEBF80F677"><enum>(A)</enum><text>represents a
significant concern in a State or region; and</text>
</subparagraph><subparagraph id="HE2A858E55D1A4C278309C1FBA194E962"><enum>(B)</enum><text>is likely to be
addressed successfully through the implementation of conservation activities by
producers on land eligible for enrollment in the program.</text>
</subparagraph></paragraph></subsection></section><section id="HBF4D4C221DF64FA0B9DD92084D8372D9"><enum>1240A.</enum><header>Establishment
and administration</header>
<subsection id="HEAB7A0D27722467ABAEF699F30F2B6D4"><enum>(a)</enum><header>In
general</header><text>During each of the 2013 through 2017 fiscal years, the
Secretary shall provide payments to producers and partners that enter into
contracts or partnership agreements with the Secretary under the
program.</text>
</subsection><subsection id="H4B365F428192401993E12417D6D024BA"><enum>(b)</enum><header>Evaluation of
applications</header>
<paragraph id="H1233FBDA042B4E7C9D8D61EF0E253A3B"><enum>(1)</enum><header>Evaluation
criteria</header><text>The Secretary shall develop criteria for evaluating
applications that will ensure that national, State, and local conservation
priorities are effectively addressed.</text>
</paragraph><paragraph id="H56725BDD54D04C9D9AE7D8CE9C3657D4"><enum>(2)</enum><header>Prioritization
of applications</header><text>In evaluating applications under the program, the
Secretary shall prioritize applications—</text>
<subparagraph id="HC6B16043CD2E441588A81D05D8F2EED9"><enum>(A)</enum><text>based on the
overall level of cost-effectiveness of the project proposed in an application
to ensure that the conservation practices and approaches proposed are the most
cost-effective means of achieving the anticipated environmental benefits of the
project;</text>
</subparagraph><subparagraph id="H77CC6E7CD2B2411FA2A4026E18D01BE8"><enum>(B)</enum><text>based on how
effectively and comprehensively the proposed project addresses the designated
resource concern or resource concerns;</text>
</subparagraph><subparagraph id="H18A3A709A5164318AEFCED7E855490C1"><enum>(C)</enum><text>that best fulfill
the purpose of the program specified in section 1240(a);</text>
</subparagraph><subparagraph id="H816D4A68DBD54E099E5BBDE83F84913F"><enum>(D)</enum><text>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;
and</text>
</subparagraph><subparagraph id="H9C72AF7767864A8DA33BFD5D185B00F2"><enum>(E)</enum><text>that will bring
significant environmental benefits in improving specific high-priority
environmental concerns, as designated by the Secretary.</text>
</subparagraph></paragraph><paragraph id="H8D96C50DD8D14D0489FFE61FE344CDAA"><enum>(3)</enum><header>Grouping of
applications</header><text>To the maximum 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.</text>
</paragraph><paragraph id="H3FB5B26FFBAE49F1BF354DCBEA7D1F3C"><enum>(4)</enum><header>Bidding
down</header><text>If the Secretary determines that the environmental values of
2 or more applications for payments are comparable, the Secretary shall not
assign a higher priority to an application only because the application would
present the least cost to the program.</text>
</paragraph></subsection><subsection id="HF46AFEA5EE54432DBD83FD28ADAAD858"><enum>(c)</enum><header>Practices and
term</header>
<paragraph id="H7866CC0833A44822BCAEDC015B763374"><enum>(1)</enum><header>Practices</header><text>A
contract under the program may apply to the performance of 1 or more
practices.</text>
</paragraph><paragraph id="H54AFD9DBEF674F36A1F17E6BF0591202"><enum>(2)</enum><header>Term</header><text>A
contract or partnership agreement under the program shall have a term
that—</text>
<subparagraph id="HB7D7E5BF9F514E888D5DBAB4630223CE"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="HB18855D08A534E7D921B322024F59F5A"><enum>(i)</enum><text>except as provided in
clause (ii), 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 1 year after
the date on which all practices under the contract have been implemented;
and</text>
</clause><clause id="H6B9DCE56BDC641F8ABC764FDA2BA5A1D" indent="up1"><enum>(ii)</enum><text>may, for contracts or partnership
agreements for development of conservation activity plans or for other
contracts or partnership agreements designated by the Secretary, be less than 1
year; but</text>
</clause></subparagraph><subparagraph id="HDD259BE98093446A9CA6581BAAE58F4C"><enum>(B)</enum><text>does not exceed 10
years.</text>
</subparagraph></paragraph></subsection><subsection id="HFD9591F3C3A8446491104640DADF51A9"><enum>(d)</enum><header>Payments</header>
<paragraph id="H315918F2AD9D459994BD581566E03835"><enum>(1)</enum><header>In
general</header><text>Payments shall be provided to a producer or partner to
implement 1 or more practices under the program.</text>
</paragraph><paragraph id="H92E9E738009A41BAAE945100BCEBEF4C"><enum>(2)</enum><header>Limitation on
payment amounts</header>
<subparagraph id="HAA86A30D2CF6411D9729B64A9FE9CB52"><enum>(A)</enum><header>In
general</header><text>Except as provided in paragraph (4), a payment to a
producer or partner for performing a practice may not exceed, as determined by
the Secretary—</text>
<clause id="H49E7F941653B49E38A41B1A2FE0DFF82"><enum>(i)</enum><text>75
percent of the costs associated with planning, design, materials, equipment,
installation, labor, management, maintenance, or training;</text>
</clause><clause id="H42F90A7AA20840A8B4C35E67F0FCFDC1"><enum>(ii)</enum><text>100 percent of
income foregone by the producer or partner, as determined in accordance with
paragraph (3); or</text>
</clause><clause id="H4262E0B3AB1A48F4B30618BD4F3C5334"><enum>(iii)</enum><text>in the case of a
practice consisting of elements covered under clauses (i) and (ii)—</text>
<subclause id="H90CFFA149C3E4F698AB46862A7660B4D"><enum>(I)</enum><text>75 percent of the
costs incurred for those elements covered under clause (i); and</text>
</subclause><subclause id="H840D5941D8A940BC897BBC45AD1EEB2F"><enum>(II)</enum><text>100 percent of
income foregone for those elements covered under clause (ii).</text>
</subclause></clause></subparagraph><subparagraph id="H2B76318CFBBA47F6B48554EBAFEA3E00"><enum>(B)</enum><header>Minimization of
Federal cost</header><text>The Secretary—</text>
<clause id="H8F413D949856415E938163DBE91D0B40"><enum>(i)</enum><text>shall seek to
minimize Federal costs in determining cost-share levels; and</text>
</clause><clause id="HB015B352D5A94DD8AA474251C53EEFA8"><enum>(ii)</enum><text>is not required
to provide the maximum cost-share amount described in subparagraph (A).</text>
</clause></subparagraph></paragraph><paragraph id="HBBA5E3A87A114A9DBC514CFADC4A456B"><enum>(3)</enum><header>Special rule
involving payments for foregone income</header><text>In determining the amount
and rate of payments under paragraph (2)(A)(ii), the Secretary may accord great
significance to a practice that, as determined by the Secretary,
promotes—</text>
<subparagraph id="HBDE45E10B7FF45E2B50EA4F29A96BBB5"><enum>(A)</enum><text>residue
management;</text>
</subparagraph><subparagraph id="HD2F1A516130843F6B08FFDCC7138C3B3"><enum>(B)</enum><text>nutrient
management;</text>
</subparagraph><subparagraph id="H1736517DC01D4BF58DFBBE5184D0E35E"><enum>(C)</enum><text>air quality
management;</text>
</subparagraph><subparagraph id="HFE84E4B178DB4FF98CF46636498F9C15"><enum>(D)</enum><text>invasive species
management;</text>
</subparagraph><subparagraph id="H5FCBC4608A28462BAC776E5996B38EFB"><enum>(E)</enum><text>pollinator
habitat;</text>
</subparagraph><subparagraph id="H37B25FC46B9A44EBBF0F600178961C5D"><enum>(F)</enum><text>animal carcass
management technology;</text>
</subparagraph><subparagraph id="H54C4D5C940194ED9A21AF8EC0480BAE1"><enum>(G)</enum><text>pest management;
or</text>
</subparagraph><subparagraph id="HCE60066811A04179BCEBE5222E8A3EDA"><enum>(H)</enum><text>water
conservation.</text>
</subparagraph></paragraph><paragraph id="H1C60436977ED4A76AF8AE495B56C64BB"><enum>(4)</enum><header>Increased
payments for certain producers</header>
<subparagraph id="H6F86358BB6EA462C8D9463770A7D13AB"><enum>(A)</enum><header>In
general</header><text>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—</text>
<clause id="H374C1B683C9948B1B164EE928AB5B4A6"><enum>(i)</enum><text>to
not more than 90 percent of the costs associated with planning, design,
materials, equipment, installation, labor, management, maintenance, or
training; and</text>
</clause><clause id="H4D52BFB4EF0C4B01984E649E030F6292"><enum>(ii)</enum><text>to not less than
25 percent above the otherwise applicable rate.</text>
</clause></subparagraph><subparagraph id="HB558881788D54954916CD99B1AA38345"><enum>(B)</enum><header>Advance
payments</header><text>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.</text>
</subparagraph><subparagraph id="H3E6AD354A631479BA7C2CDE249AD10DF"><enum>(C)</enum><header>Minimization of
Federal cost</header><text>The Secretary—</text>
<clause id="H83280CFFACDA43DEB9101FAE4B12513E"><enum>(i)</enum><text>shall seek to
minimize Federal costs in determining cost-share levels; and</text>
</clause><clause id="H0F40C493E16A46A58D80D242AD6447D5"><enum>(ii)</enum><text>is not required
to provide the maximum cost-share amount described in subparagraph (A).</text>
</clause></subparagraph></paragraph><paragraph id="HC336C0B00C6C4CE4845D22EB94F72992"><enum>(5)</enum><header>Financial
assistance from other sources</header><text>Except as provided in paragraph
(6), any payments received by a producer or partner from a State or private
organization, individual, or legal entity for the implementation of 1 or more
practices on eligible land of the producer shall be in addition to the payments
provided to the producer or partner under this subsection.</text>
</paragraph><paragraph id="H9A9788AF6B654EB9864C74FE519DA5B3"><enum>(6)</enum><header>Other
payments</header><text>A producer or partner shall not be eligible for payments
for practices on eligible land under the program if the producer or partner
receives payments or other benefits for the same practice on the same land
under another program under this title.</text>
</paragraph></subsection><subsection id="HF8C6EF7CA3434036BB08B287F4468E1D"><enum>(e)</enum><header>Modification or
termination of contracts or partnership agreements</header>
<paragraph id="H50ABE0C6A8224447BAA93749A0ACCD3D"><enum>(1)</enum><header>Voluntary
modification or termination</header><text>The Secretary may modify or terminate
a contract or partnership agreement entered into with a producer or partner
under the program if—</text>
<subparagraph id="H4D73928E4EE243ADBEF6572D4FAE5A54"><enum>(A)</enum><text>the producer or
partner agrees to the modification or termination; and</text>
</subparagraph><subparagraph id="H4698455A70DB4D1AAEBB464F9EFDBCA2"><enum>(B)</enum><text>the Secretary
determines that the modification or termination is in the public
interest.</text>
</subparagraph></paragraph><paragraph id="H3C843C4A5CC7468FB1DCBEECCB4BCC31"><enum>(2)</enum><header>Involuntary
termination</header><text>The Secretary may terminate a contract or partnership
agreement under the program if the Secretary determines that the producer or
partner violated the contract or partnership agreement.</text>
</paragraph></subsection><subsection id="H40C9DB00285A4F8CB949E84A682FAAA6"><enum>(f)</enum><header>Funding for
Indian tribes and Alaska native corporations</header><text>The Secretary may
enter into alternative funding arrangements with Indian tribes and Alaska
Native Corporations (including affiliated membership organizations) if the
Secretary determines that—</text>
<paragraph id="H16D30D58854D4407839879691FF732E3"><enum>(1)</enum><text>the goals and
objectives of the program will be met by the arrangements; and</text>
</paragraph><paragraph id="H3C68BA0F3AFA4BEBA43A16ACA11CC533"><enum>(2)</enum><text>statutory
limitations regarding contracts with individual producers will not be exceeded
by any tribal or Native Corporation member.</text>
</paragraph></subsection></section><section id="H12B7486AEDAF4B1D8495C25A6F757119"><enum>1240B.</enum><header>Duties of
producers and partners</header>
<subsection id="HA3E1F5310B864CDBB7E256A75C9B43C8"><enum>(a)</enum><header>In
general</header><text>To receive payments under the program, a producer or
partner shall agree—</text>
<paragraph id="H8DB9FF5C2E764B6CA31E85F34A9240C5"><enum>(1)</enum><text>to implement a
program plan (including a comprehensive nutrient management plan, if
applicable) that describes conservation and environmental purposes to be
achieved through 1 or more practices that are approved by the Secretary;</text>
</paragraph><paragraph id="H32B0B4E4263E4978AC62BF77234954D6"><enum>(2)</enum><text>not to conduct any
practices on the eligible land that would tend to defeat the purposes of the
program;</text>
</paragraph><paragraph id="HC0B69F4333F641DC8003D7F4DE3BC916"><enum>(3)</enum><text>on the violation
of a term or condition of the contract or partnership agreement at any time
during which the producer or partner is required to have control of the
eligible land—</text>
<subparagraph id="HB479336B609A44C2820F356385C0BA1D"><enum>(A)</enum><text>if the Secretary
determines that the violation warrants termination of the contract or
partnership agreement—</text>
<clause id="HF966E8A0E72944D1AE5B5DB524F21C58"><enum>(i)</enum><text>to
forfeit all rights to receive payments under the contract or partnership
agreement; and</text>
</clause><clause id="HAF3149D53B1747849252F4E4CE790DCA"><enum>(ii)</enum><text>to refund to the
Secretary all or a portion of the payments received by the producer or partner
under the contract or partnership agreement, including any interest on the
payments, as determined by the Secretary; or</text>
</clause></subparagraph><subparagraph id="H03302BE3F8C647B3873562D8FA206ADF"><enum>(B)</enum><text>if the Secretary
determines that the violation does not warrant termination of the contract or
partnership agreement, to refund to the Secretary, or accept adjustments to,
the payments provided to the producer or partner, as the Secretary determines
to be appropriate;</text>
</subparagraph></paragraph><paragraph id="H3FB27C6E17484FB1B3C849B1399598C0"><enum>(4)</enum><text>on the transfer of
the right and interest of the producer or partner in eligible land subject to
the contract or partnership agreement, unless the transferee of the right and
interest agrees with the Secretary to assume all obligations of the contract or
partnership agreement, to refund all payments received under the program, as
determined by the Secretary;</text>
</paragraph><paragraph id="HBB2DF3525F82425F9198B68812DF9657"><enum>(5)</enum><text>to supply
information as required by the Secretary to determine compliance with the
program plan and requirements of the program; and</text>
</paragraph><paragraph id="HA2637EA669284DC6A08CF9DACF8D329E"><enum>(6)</enum><text>to comply with
such additional provisions as the Secretary determines are necessary to carry
out the program plan.</text>
</paragraph></subsection><subsection id="H590F8FA73BBD499B900D836B9A476431"><enum>(b)</enum><header>Program
plan</header>
<paragraph id="H0F57D27D36AE4FC3AF2FB9C45D1ABD77"><enum>(1)</enum><header>In
general</header><text>To be eligible to receive payments under the program, a
producer or partner shall submit to the Secretary for approval a plan of
operations that—</text>
<subparagraph id="H64EA9C4BE18949D6B3E51C3E06828E43"><enum>(A)</enum><text>specifies
practices covered under the program;</text>
</subparagraph><subparagraph id="HB4380F74C9F148859C718EF6B4AAC35A"><enum>(B)</enum><text>includes such
terms and conditions as the Secretary considers necessary to carry out the
program, including a description of the purposes to be met by the
implementation of the plan;</text>
</subparagraph><subparagraph id="H9619CE30F0F1495A81EDC7440360742A"><enum>(C)</enum><text>in the case of a
confined livestock feeding operation, provides for development and
implementation of a comprehensive nutrient management plan, if applicable;
and</text>
</subparagraph><subparagraph id="HCA55511E62894D438C6EE025720228DA"><enum>(D)</enum><text>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—</text>
<clause id="HDA0BB3EFAC214DC2841422F487C2E32F"><enum>(i)</enum><text>a
forest stewardship plan described in section 5 of the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2103a);</text>
</clause><clause id="H0D18C1E6EDD24F9F9A46083E47E60420"><enum>(ii)</enum><text>another practice
plan approved by the State forester; or</text>
</clause><clause id="HA86B0693EB094D28BBBC7EA433C9CBE7"><enum>(iii)</enum><text>another plan
determined appropriate by the Secretary.</text>
</clause></subparagraph></paragraph><paragraph id="HEF581820BBAE4FD48783545C564A960D"><enum>(2)</enum><header>Avoidance of
duplication</header><text>The Secretary shall—</text>
<subparagraph id="HD1063F2F97684C15BB678F7970955BA2"><enum>(A)</enum><text>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 paragraph (1), if the
plan contains elements equivalent to those elements required by a plan of
operations; and</text>
</subparagraph><subparagraph id="H1AA39E31579A4FC99FF4D43E9D833892"><enum>(B)</enum><text>to the maximum
extent practicable, eliminate duplication of planning activities under the
program and comparable conservation programs.</text>
</subparagraph></paragraph></subsection></section><section id="HF8DACF37771146328938BE67FF248090"><enum>1240C.</enum><header>Duties of the
Secretary</header>
<subsection id="H6A3EB8B43EB84C17AC5B8246F5057045"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">To the extent
appropriate, the Secretary shall assist a producer or partner in achieving the
conservation and environmental goals of a program plan by—</text>
<paragraph id="H6C7AEA0192D04B91A22FE108DBCE37C0"><enum>(1)</enum><text>providing payments
for developing and implementing 1 or more practices, as appropriate; and</text>
</paragraph><paragraph id="H14E45948407F4732BDF7B45EFBAB4006"><enum>(2)</enum><text>providing the
producer or partner with information and training to aid in the implementation
of the plan.</text>
</paragraph></subsection><subsection id="H897F0E0F3CD24101A2B1F3D6F694B497"><enum>(b)</enum><header>Targeted
practices</header>
<paragraph id="H0B1C5B3CFF1A450DBCB01663D6BC76A7"><enum>(1)</enum><header>Agricultural
water enhancement initiative</header><text>Of the funds made available to carry
out this chapter, the Secretary shall use not less than $60,000,000 to provide
payments for agricultural water enhancement activity to promote ground and
surface water conservation and improve water quality on agricultural land,
including—</text>
<subparagraph id="HB783AF7FE5444E8FA8A52E32AD2894D6"><enum>(A)</enum><text>water quality or
water conservation plan development, including resource condition assessment
and modeling;</text>
</subparagraph><subparagraph id="HBAE50019C3734BE394A9FB56EC85FC5A"><enum>(B)</enum><text>water conservation
restoration or enhancement projects, including conversion to the production of
less water-intensive agricultural commodities or dryland farming;</text>
</subparagraph><subparagraph id="HB0B2A5E5A2854848AA2FDE1B7D6F3365"><enum>(C)</enum><text>water quality or
quantity restoration or enhancement projects;</text>
</subparagraph><subparagraph id="H37BE11D6F6414083AE73FA2EE1EB04C3"><enum>(D)</enum><text>irrigation system
improvement and irrigation efficiency enhancement;</text>
</subparagraph><subparagraph id="H204D3EF9E4AC48499E6FEDB3F0256527"><enum>(E)</enum><text>activities
designed to mitigate the effects of drought; and</text>
</subparagraph><subparagraph id="H0174C21CA34441DFAEB241E15387282F"><enum>(F)</enum><text>related activities
that the Secretary determines will help achieve water quality or water
conservation benefits on agricultural land.</text>
</subparagraph></paragraph><paragraph id="HBABCEC99D15F4E249695F4C110087019"><enum>(2)</enum><header>Agricultural air
quality concerns</header>
<subparagraph id="H5828E7DD73BE4A8994C54525FA65804B"><enum>(A)</enum><header>Implementation
assistance</header><text>Of the funds made available to carry out this chapter,
the Secretary shall use not less than $37,500,000 to provide payments under
this paragraph to producers or partners to implement practices—</text>
<clause id="H9884F5E4546B4C259212DEA5418DC325"><enum>(i)</enum><text>to
address air quality concerns from agricultural operations; and</text>
</clause><clause id="HD2DC0B989BDC47ECA2B11B9956EB50DE"><enum>(ii)</enum><text>meet Federal,
State, and local regulatory requirements.</text>
</clause></subparagraph><subparagraph id="H9500CB20D9DF4703AC2CDE4026965280"><enum>(B)</enum><header>Availability and
use</header><text>The funds shall be—</text>
<clause id="HE0BC3D478E734B3CAAADF41714355256"><enum>(i)</enum><text>made available on
the basis of air quality concerns in a State; and</text>
</clause><clause id="H258B2DEA841140E285D71643B8F9566C"><enum>(ii)</enum><text>used to provide
payments to producers that are cost-effective and reflect innovative
technologies.</text>
</clause></subparagraph></paragraph><paragraph id="HBB5C93A80A3742F9A82BA5109E978239"><enum>(3)</enum><header>Conservation
stewardship initiative</header>
<subparagraph id="HA22391C784614CE2924D48E338D67B55"><enum>(A)</enum><header>In
general</header><text>The Secretary may use funds made available to carry out
this chapter for conservation stewardship initiatives to address resource
concerns in a comprehensive manner by—</text>
<clause id="H9443698ADE904844860019B93DA5DDD5"><enum>(i)</enum><text>undertaking
additional conservation activities; and</text>
</clause><clause id="H78E7D17F44454ADF9198392A7793BE48"><enum>(ii)</enum><text>improving,
maintaining, and managing existing conservation activities.</text>
</clause></subparagraph><subparagraph id="H26444033F7BC4709B80081BEF339DE27"><enum>(B)</enum><header>Submission of
contract or partnership agreement offers</header><text>To be eligible to
participate in the conservation stewardship initiative and receive an
initiative payment, a producer or partner shall submit to the Secretary for
approval a contract or partnership agreement offer that—</text>
<clause id="H20E8800F2C2E416BABD4FE1C3B9B942B"><enum>(i)</enum><text>demonstrates to
the satisfaction of the Secretary that the producer or partner, at the time of
the contract or partnership agreement offer, is meeting the stewardship
threshold for at least 1 resource concern; and</text>
</clause><clause id="HD96D0FB5AFBC48A48A1AC3A4C5CF21ED"><enum>(ii)</enum><text>would, at a
minimum, meet or exceed the stewardship threshold for at least 2 priority
resource concerns by the end of the contract or partnership agreement
by—</text>
<subclause id="H89BE235F41A444219B33E1FF1B51E702"><enum>(I)</enum><text>installing and
adopting additional conservation activities; and</text>
</subclause><subclause id="HF580E659B5F1452FB94A74D23C6810D7"><enum>(II)</enum><text>improving,
maintaining, and managing conservation activities in place at the operation of
the producer at the time the contract or partnership agreement offer is
accepted by the Secretary.</text>
</subclause></clause></subparagraph><subparagraph id="H504D1E806C3144119B76B7E101360FDA"><enum>(C)</enum><header>Payment
amount</header><text>An initiative payment to a producer shall be based on the
conservation performance to be achieved on eligible land in an amount
determined by the Secretary.</text>
</subparagraph></paragraph><paragraph id="H0567BBB215854419A7192B9733B608D7"><enum>(4)</enum><header>Competitive
grants for innovative conservation approaches</header>
<subparagraph id="H5F0531C70F554C8B9AC540367A18130C"><enum>(A)</enum><header>In
general</header><text>The Secretary may use funds made available to carry out
this chapter to 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.</text>
</subparagraph><subparagraph id="H6B5422B3847445E89912AC9952C600D2"><enum>(B)</enum><header>Use</header><text>The
Secretary may provide grants under this paragraph to governmental and
nongovernmental organizations, individuals, and legal entities, on a
competitive basis, to carry out projects that—</text>
<clause id="HE7BC36CB95BF47E1AFABDAB55DD4FE58"><enum>(i)</enum><text>involve producers
or partners who are eligible for payments or technical assistance under the
program;</text>
</clause><clause id="H424E7E04922F47FB9D0BE61029860D0D"><enum>(ii)</enum><text>leverage Federal
funds made available to carry out the program with matching funds provided by
State and local governments and private organizations to promote environmental
enhancement and protection in conjunction with agricultural production;</text>
</clause><clause id="H8A8338EF8D574366BE3D48A594E3B933"><enum>(iii)</enum><text>ensure efficient
and effective transfer of innovative technologies and approaches demonstrated
through projects that receive funding under this paragraph, such as market
systems for pollution reduction and practices for the storage of carbon in
soil; and</text>
</clause><clause id="HE7FC03B9B9F447E7BA8C27C9CEA9966D"><enum>(iv)</enum><text>provide
environmental and resource conservation benefits through increased
participation by producers of specialty crops.</text>
</clause></subparagraph></paragraph><paragraph id="H84EE24F1E72448BCB87D4436264B4031"><enum>(5)</enum><header>Organic
production conservation initiatives</header>
<subparagraph id="H851E4A346DB44A97BD662A6EE638CABB"><enum>(A)</enum><header>In
general</header><text>The Secretary may provide payments under this paragraph
for conservation practices, on some or all of the operations of a producer or
partner, relating to—</text>
<clause id="H6B6D3B5168F5445FB1B869CAD7FE6483"><enum>(i)</enum><text>organic
production; and</text>
</clause><clause id="HDDD914D629DB4681A1ADB651951D9AE7"><enum>(ii)</enum><text>the transition to
organic production.</text>
</clause></subparagraph><subparagraph id="H82AC878BFAE84A9B9793FF4EF8CC2AA4"><enum>(B)</enum><header>Eligibility
requirements</header><text>As a condition for receiving payments under this
paragraph, a producer or partner shall agree—</text>
<clause id="HBD8D72768FCB47D0AF69E9660CA0DE99"><enum>(i)</enum><text>to
develop and carry out an organic system plan in furtherance of transitioning to
organic production; or</text>
</clause><clause id="H09DB5F1E60B040FBB92E7E9E7FB69C25"><enum>(ii)</enum><text>to develop and
implement conservation practices for certified organic production that are
consistent with an organic system plan and the purposes of the program.</text>
</clause></subparagraph><subparagraph id="HE0FDBEF2E224436489AA5AAD5BC0CCA0"><enum>(C)</enum><header>Payment
limitations</header>
<clause id="H491E0E9976FC4F018AEC58D5750EC4BA"><enum>(i)</enum><header>In
general</header><text>Subject to clause (ii), payments under this paragraph to
a person or legal entity, directly or indirectly, may not exceed, in the
aggregate, $20,000 per year or $80,000 in payments made pursuant to contracts
or partnership agreements entered into during the period of fiscal years 2013
through 2017.</text>
</clause><clause id="HE006D8A5714A4BE3BA42FD57E09E52D3"><enum>(ii)</enum><header>Technical
assistance excluded</header><text>In applying clause (i), the Secretary shall
not take into account payments received for technical assistance.</text>
</clause></subparagraph><subparagraph id="H1E65E1498066437CB290E9F4B5D3DCCD"><enum>(D)</enum><header>Exclusion of
certain organic certification costs</header><text>Payments may not be made
under this paragraph 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).</text>
</subparagraph><subparagraph id="HB07767061C4941048A30444A1779888E"><enum>(E)</enum><header>Termination of
contracts or partnership agreements</header><text>The Secretary may cancel or
otherwise nullify a contract or partnership agreement to provide payments under
this paragraph if the Secretary determines that the producer—</text>
<clause id="H5288A36B74CB441F83B1C973846E0ACB"><enum>(i)</enum><text>is
not pursuing organic certification; or</text>
</clause><clause id="H63A092ABD5174FF28702967BDAA43F6E"><enum>(ii)</enum><text>is not in
compliance with the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et
seq.).</text>
</clause></subparagraph></paragraph><paragraph id="H63D7302E99F647D0A48F3DA394874A8C"><enum>(6)</enum><header>Water
conservation or irrigation efficiency initiative</header>
<subparagraph id="H8D07C07A38064E749B846C395BEEEE5B"><enum>(A)</enum><header>In
general</header><text>The Secretary may provide payments under this paragraph
to a producer or partner for a water conservation or irrigation
practice.</text>
</subparagraph><subparagraph id="HDC8E9D50AF4B4211840418317E317292"><enum>(B)</enum><header>Priority</header><text>In
providing payments to a producer or partner for a water conservation or
irrigation practice, the Secretary shall give priority to applications in
which—</text>
<clause id="HB0F09352F3EE4D92855E52E77DB9DE49"><enum>(i)</enum><text>consistent with
the law of the State in which the eligible land of the producer or partner is
located, there is a reduction in water use in the operation of the producer or
partner; or</text>
</clause><clause id="H6EB3BF3C910A4F6490B4E2F4C629673E"><enum>(ii)</enum><text>the producer or
partner 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 or partner is participating in a watershed-wide
project that will effectively conserve water, as determined by the
Secretary.</text>
</clause></subparagraph></paragraph><paragraph id="H4B158AB1B07149C6B2A39F19EA229762"><enum>(7)</enum><header>Wildlife habitat
initiative</header>
<subparagraph id="H6746AAA78F1944038569D64843431FCC"><enum>(A)</enum><header>In
general</header><text>Of the funds made available to carry out this chapter,
the Secretary, in consultation with the State technical committees established
under section 1261, shall make available to producers and owners of eligible
land not less than $85,000,000 to provide payments for the development of
wildlife habitat, including—</text>
<clause id="HE40C67C1B21E4BC09E1447BD4AFD6910"><enum>(i)</enum><text>upland wildlife
habitat;</text>
</clause><clause id="H1F020F1DD76143478FFD95A61BD77B45"><enum>(ii)</enum><text>wetland wildlife
habitat;</text>
</clause><clause id="HB2FD7B7224B14390A02064C972476DB5"><enum>(iii)</enum><text>habitat for
threatened or endangered species;</text>
</clause><clause id="H106BA52783094D70AC8FC95163DBE554"><enum>(iv)</enum><text>fish
habitat;</text>
</clause><clause id="HFC0A39621A954926BF7C464D88A98D51"><enum>(v)</enum><text>aquatic wildlife
habitat associated with riparian or submerged land, even if the land is subject
to title being held by the State when submerged if consistent with State law;
and</text>
</clause><clause id="HE1B7E4CA593846AFBF79E22D7FD1A76D"><enum>(vi)</enum><text>other types of
wildlife habitat approved by the Secretary, including habitat developed on
pivot corners and irregular areas.</text>
</clause></subparagraph><subparagraph id="HACA9EA33BB8F4EABB83FA5F2551F38A2"><enum>(B)</enum><header>Priority for
certain conservation initiatives</header><text>In carrying out this paragraph,
the Secretary may give priority to projects that would address issues raised by
State, regional, and national conservation initiatives.</text>
</subparagraph></paragraph></subsection></section><section id="H09862A89EF5A4C0AA1F09D2BF3C4B758"><enum>1240D.</enum><header>Funding</header>
<subsection id="HE399C7A83F5D410DA42ED9BA6F117AB4"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Of the funds of the
Commodity Credit Corporation, the Secretary shall use to carry out this chapter
$2,250,000,000 for each fiscal year.</text>
</subsection><subsection id="H826EB9EC05B4403F9D38BF7278BE6020"><enum>(b)</enum><header>Payment
limitations</header>
<paragraph id="H0769CF1EC7E346FABA231B9E81CEAE24"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subject to paragraph
(2), a person or legal entity may not receive, directly or indirectly, practice
payments or incentive payments under this chapter that, in the aggregate,
exceed $300,000 for all contracts or partnership agreements entered into under
this chapter by the person or legal entity during the period of fiscal years
2013 through 2017 (excluding funding arrangements with federally recognized
Native American Indian tribes or Alaska Native Corporations under section
1240A(f)), regardless of the number of contracts or partnership agreements
entered into under this chapter by the person or entity.</text>
</paragraph><paragraph id="H18BEC73B908D4BFBAA27D3072EDC4DC5"><enum>(2)</enum><header>Waiver
authority</header><text>In the case of contracts or partnership agreements
under this chapter for projects of special environmental significance
(including projects involving methane digesters), as determined by the
Secretary, the Secretary may—</text>
<subparagraph id="HCF0195CB8EA64F5FB293FB562A9598F2"><enum>(A)</enum><text>waive the
limitation otherwise applicable under paragraph (1); and</text>
</subparagraph><subparagraph id="H64D0E422C1DE45F8A1B9ADF7E7C32B3A"><enum>(B)</enum><text>raise the
limitation to not more than $450,000 for all contracts or partnership
agreements entered into during the period of fiscal years 2013 through
2017.</text>
</subparagraph></paragraph></subsection></section></chapter><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H587F80B1CF0842D7A50D00C45C815FC2"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="H30898F4A4AD346318F560E17CF202997"><enum>(1)</enum><text>Section 344(f)(8)
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1344(f)(8)) is amended by
striking <quote>environmental quality incentives program</quote> and inserting
<quote>working land program</quote>.</text>
</paragraph><paragraph id="H19B6B056B7DE4C42A698B344FB7C2191"><enum>(2)</enum><text>Section 377 of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1377) is amended by striking
<quote>environmental quality incentives program</quote> and inserting
<quote>working land program</quote>.</text>
</paragraph><paragraph id="H1DA273EE503A425DACE4A0B6B54B2378"><enum>(3)</enum><text>Section 101(1) of
the Department of Agriculture and Farm Credit Administration Appropriation Act,
1959 (7 U.S.C. 1831a(1)) is amended by striking <quote>environmental quality
incentives program</quote> and inserting <quote>working land
program</quote>.</text>
</paragraph><paragraph id="H0A8DB457179345B0BE0C5D8101D5772A"><enum>(4)</enum><text>Section
1271(c)(3)(C) of the Forest Stewardship Act of 1990 (16 U.S.C. 2106a(c)(3)(C))
is amended by striking <quote>environmental quality incentives program</quote>
and inserting <quote>working land program</quote>.</text>
</paragraph><paragraph id="HF6A09B95ABC94F39BFC1AC511D6FDA2E"><enum>(5)</enum><text>Section 202(c) of
the Colorado River Basin Salinity Control Act (43 U.S.C. 1592(c)) is amended by
striking <quote>environmental quality incentives program</quote> and inserting
<quote>working land program</quote>.</text>
</paragraph><paragraph id="H50074C499EC9446D9374039AA781A8E7"><enum>(6)</enum><text>Section
1211(a)(3)(A) of the Food Security Act of 1985 (16 U.S.C. 3811(a)(3)(A)) is
amended by striking <quote>environmental quality incentives program</quote> and
inserting <quote>working land program</quote>.</text>
</paragraph><paragraph id="H9FCE68F565C14C76A6903F224DC0166B"><enum>(7)</enum><text>Section
1221(b)(3)(A) of the Food Security Act of 1985 (16 U.S.C. 3821(b)(3)(A)) is
amended by striking <quote>environmental quality incentives program</quote> and
inserting <quote>working land program</quote>.</text>
</paragraph></subsection></section></subtitle><subtitle id="H222C47FD0B644193A17685A9421EC29F"><enum>D</enum><header>Other conservation
programs</header>
<section id="H366E9AB09A8240D584941B481DDD099F"><enum>2301.</enum><header>Other
conservation programs of the Food Security Act of 1985</header>
<subsection id="H935BD45F97DD4D2293D8048AC81252C4"><enum>(a)</enum><header>Conservation of
private grazing land</header><text display-inline="yes-display-inline">Section
1240M(e) of the Food Security Act of 1985 (16 U.S.C. 3839bb(e)) is amended by
striking <quote>2012</quote> and inserting <quote>2017</quote>.</text>
</subsection><subsection id="HCF57B51C3E52402F8A85EEF65EE2F03F"><enum>(b)</enum><header>Grassroots
source water protection program</header><text display-inline="yes-display-inline">Section 1240O(b) of the Food Security Act
of 1985 (16 U.S.C. 3839bb–2(b)) is amended by striking <quote>2012</quote> and
inserting <quote>2017</quote>.</text>
</subsection><subsection display-inline="no-display-inline" id="HE0E5EE45D6A24D15A07F9C590A84833F"><enum>(c)</enum><header>Great Lakes
basin program for soil erosion and sediment control</header><text display-inline="yes-display-inline">Section 1240P(d) of the Food Security Act
of 1985 (16 U.S.C. 3839bb–3(d)) is amended by striking <quote>2012</quote> and
inserting <quote>2017</quote>.</text>
</subsection><subsection id="H3C8FAF4F3E5B4787B0AA72DF17A54BA6"><enum>(d)</enum><header>Chesapeake Bay
watershed program</header><text display-inline="yes-display-inline">Section
1240Q of the Food Security Act of 1985 (16 U.S.C. 3839bb–4) is amended by
striking subsection (h) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HC8F05847B80640CDA84E55AC0E2A6E3A" style="OLC">
<subsection id="H7D72510E09D0467E9AC6FFE26EAF824A"><enum>(h)</enum><header>Funding</header><text display-inline="yes-display-inline">There is authorized to be appropriated to
carry out this section $50,000,000 for each of fiscal years 2012 through
2017.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H75E3DC936FDF493EBB532D321B2ED069"><enum>(e)</enum><header>Voluntary public
access and habitat incentive program</header><text display-inline="yes-display-inline">Section 1240R(f) of the Food Security Act
of 1985 (16 U.S.C. 3839bb–5(f)) is amended by striking <quote>2012</quote> and
inserting <quote>2017</quote>.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H4873618B68C941C7BE4579B3FB67F0EE" section-type="subsequent-section"><enum>2302.</enum><header>Funding of
conservation programs under Food Security Act of 1985</header>
<subsection id="H24CFF8F873624D9FADBCD0223FB55CF1"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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 <quote>2012</quote> and inserting
<quote>2017</quote>.</text>
</subsection><subsection id="H797A9E78D0004084BD0F0E983A8BEF65"><enum>(b)</enum><header>Conservation
reserve program</header><text display-inline="yes-display-inline">Section
1241(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3841(a)(1)) is amended
by striking <quote>2012</quote> each place it appears and inserting
<quote>2017</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H38A765EB37004637903A55971465864C"><enum>(c)</enum><header>Repeals</header><text>Section
1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HE8C347EA593F47BCBA6E94CF6DAC898A"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD2F6C73B4E9E4E98AF17A5FE53A109ED"><enum>(A)</enum><text>in paragraph
(3)—</text>
<clause commented="no" display-inline="no-display-inline" id="H02CFF51EDA254E86ACE160572203BD30"><enum>(i)</enum><text>by striking
<quote>(A)</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7303EC87B3474D15B7E54C13A11DBDEB"><enum>(ii)</enum><text>by striking
subparagraph (B);</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0340E5040D984729832525D5456481F5"><enum>(B)</enum><text>by striking
paragraphs (2), (4), (5), (6), and (7); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H891CDEDE6C6540CE92ACF01D853D81D3"><enum>(C)</enum><text>by redesignating
paragraph (3) as paragraph (2);</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE0A3506E6EA4431D8E438F10666042CE"><enum>(2)</enum><text>in subsection (b),
in the matter preceding paragraph (1), by striking <quote>paragraphs (1)
through (7) of</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2D8DEF423F8F437CB06D0F6ACE74BFC5"><enum>(3)</enum><text>in subsection
(h)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HDD062285C41B4274BB8F93E6C89D4DB4"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>wetlands reserve program</quote> and inserting
<quote>easement benefits program</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9E5B4B93D6004C4FA52B694544035174"><enum>(B)</enum><text>in paragraph (4),
by striking <quote>environmental quality incentives program for land determined
to have special environmental significance pursuant to section 1240G(b)</quote>
and inserting <quote>working land program for land determined to have special
environmental significance</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H75641F2C776C4D979229DCC651C3EC4D"><enum>(C)</enum><text>by striking
paragraphs (2), (3), and (5); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCEC603EE592B4D4BA2B3101067368C5D"><enum>(D)</enum><text>by redesignating
paragraphs (4) and (6) as paragraphs (2) and (3), respectively.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCE3DB28D79B84029A035773C9230686F"><enum>(d)</enum><header>Regional
equity</header><text>Section 1241 of the Food Security Act of 1985 (16 U.S.C.
3841) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H5EAFEF84FF79451DA32D780D623F3704"><enum>(1)</enum><text>by striking
subsection (d); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H247AE6992BE84087AB158982CC89573D"><enum>(2)</enum><text>by redesignating
subsections (e) through (h) as subsections (d) through (g),
respectively.</text>
</paragraph></subsection><subsection id="H696D65DAAB6C44C2BF6080BDA55A7A44"><enum>(e)</enum><header>Assistance to
certain farmers or ranchers for conservation access</header><text display-inline="yes-display-inline">Subsection (f) of section 1241 of the Food
Security Act of 1985 (16 U.S.C. 3841) (as redesignated by subsection (d)(2)) is
amended—</text>
<paragraph id="H01837D68C67A4DF0B1DA0C48448DEAB3"><enum>(1)</enum><text>in paragraph (1),
in the matter preceding subparagraph (A), by striking <quote>made available
for</quote> and all that follows through <quote>shall use</quote> and inserting
<quote>and acres made available for each of fiscal years 2012 through 2017 to
carry out the working land program, the Secretary shall use</quote>; and</text>
</paragraph><paragraph id="H82BADA4B66204D39A0DE70FB23023375"><enum>(2)</enum><text>in paragraph (3),
by striking <quote>conservation stewardship program</quote> and inserting
<quote>working land program</quote>.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HE5D42CDC5C58445D890BCDDE08A39516"><enum>2303.</enum><header>Cooperative
conservation partnership initiative</header>
<subsection display-inline="no-display-inline" id="H44E133DEDD3A497DAC9387ADBEDD41A7"><enum>(a)</enum><header>Initiative
programs</header><text>Section 1243(c) of the Food Security Act of 1985 (16
U.S.C. 3843(c)) is amended by striking paragraph (2) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H55E54EBA368842FEA2002BB267BC996B" style="OLC">
<paragraph display-inline="no-display-inline" id="H4A5156FFC0A440088EDA0D46723BB51A"><enum>(2)</enum><header>Limitation and
coordination with the conservation reserve program</header>
<subparagraph display-inline="no-display-inline" id="HEBA9DC8B49CC41BB9DD904FDBE0C4577"><enum>(A)</enum><header>In
general</header><text>The Initiative shall not include the conservation reserve
program.</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="H1160D6178F754AE9A226170814CC3466"><enum>(B)</enum><header>Coordination</header><text>The
Secretary shall coordinate implementation of the cooperative conservation
partnership initiative and those portions of the conservation reserve program
eligible for continuous
enrollment.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="H1CDA6F7D86D9448CAD66D32F1F0DE040"><enum>(b)</enum><header>Applications</header><text>Section
1243(f)(2) of the Food Security Act of 1985 (16 U.S.C. 3843(f)(2)) is
amended—</text>
<paragraph display-inline="no-display-inline" id="HE1497C7B50394D62935D8FA1EC32BADE"><enum>(1)</enum><text>in subparagraph
(A), by inserting <quote>, and may consider applications that have identified
producers for participation in the project</quote> before the semicolon at the
end;</text>
</paragraph><paragraph display-inline="no-display-inline" id="H46AA1B5984E544DFB142F0E845AC7238"><enum>(2)</enum><text>in subparagraph
(D), by striking <quote>or</quote> at the end;</text>
</paragraph><paragraph display-inline="no-display-inline" id="H70614C7EE39C40DC824DF194ADD8B79F"><enum>(3)</enum><text>by redesignating
subparagraph (E) as subparagraph (F); and</text>
</paragraph><paragraph display-inline="no-display-inline" id="HC481C0008C5E4CAAB57E98CA22675949"><enum>(4)</enum><text>by inserting after
subparagraph (D) the following:</text>
<quoted-block display-inline="no-display-inline" id="H5FBDB82DFF5642A0BE5416E4B08A195D" style="OLC">
<subparagraph display-inline="no-display-inline" id="H06AC7ECF68454DC1A3227A1B3029433F"><enum>(E)</enum><text>will benefit
economic development of rural communities, including as integrated into local
economic development plans;
or</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H7D8F777199D94B018764000D63B38345"><enum>(c)</enum><header>Relationship to
covered programs</header><text>Section 1243(g) of the Food Security Act of 1985
(16 U.S.C. 3843(g)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H423BA4FDE3E5427B911BC6F1A1D81EEC" style="OLC">
<paragraph id="HBB7301E2E4EB4E87A8F245A856793B46"><enum>(3)</enum><header>Adjustment of
programs by eligible partners</header><text>The Secretary shall allow eligible
partners to adjust conservation programs during the implementation phase if the
adjustments—</text>
<subparagraph id="H14AEF141D0B04EEBB3E41D7B4A479C05"><enum>(A)</enum><text>achieve purposes
consistent with the purposes of this section; and</text>
</subparagraph><subparagraph id="H7830174C16374B3DABB8A332FF7E8AA2"><enum>(B)</enum><text>are approved by
the Secretary prior to the adjustments being
implemented.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="H8BDFEA5472824E1A8DCB49E1882F816C"><enum>(d)</enum><header>Funding</header><text display-inline="yes-display-inline">Section 1243(i) of the Food Security Act of
1985 (16 U.S.C. 3843(i)) is amended—</text>
<paragraph display-inline="no-display-inline" id="H67B019F738114F7599406A6A0AB56195"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (1) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H36CD49625F394D0A8895534E451F6BAB" style="OLC">
<paragraph id="H60C6CE9A12374DBB9A4C841BF401CCA0"><enum>(1)</enum><header>Reservation</header><text>Of
the funds and acres made available for each fiscal year to implement the
programs described in subsection (c)(1), to ensure an adequate source of funds
and acres for the Initiative, the Secretary shall reserve—</text>
<subparagraph id="H41C027C4D9CF4C6BAB9764A6DD98DDDF"><enum>(A)</enum><text>for fiscal year
2013, 10 percent of the funds and acres;</text>
</subparagraph><subparagraph id="H39D8933014A1487498D9397308808F87"><enum>(B)</enum><text>for fiscal year
2014, 12.5 percent of the funds and acres; and</text>
</subparagraph><subparagraph id="HFBD62E961A964591AFF063176B516EDB"><enum>(C)</enum><text>for fiscal year
2015 and each fiscal year thereafter, 15 percent of the funds and
acres.</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="H2F6FFD9377714E758A2EB616EC8F598D"><enum>(2)</enum><text>in paragraph
(4)—</text>
<subparagraph display-inline="no-display-inline" id="H014634BDE1FB4406AC52A18D4FD95640"><enum>(A)</enum><text>by striking
<quote>Overhead</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HC0604CEF62DA4B9FBBF94B47921E75F7" style="OLC">
<subparagraph display-inline="no-display-inline" id="H5448654753FB4EB3852FE846CAEC11EF"><enum>(A)</enum><header>In
general</header><text>Overhead</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph display-inline="no-display-inline" id="HEEF412E4488D4CAB8565F11116A101A8"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H522BCCE552554A95BAC739DF44FCAF53" style="OLC">
<subparagraph display-inline="no-display-inline" id="HBB3756D170654F5B8A28B9543CA2F7F1"><enum>(B)</enum><header>Technical
assistance</header><text>The use of funds for technical assistance to achieve
conservation goals—</text>
<clause display-inline="no-display-inline" id="H8B5216E85C8A4E4F98A964AF0D1B91D7"><enum>(i)</enum><text>is not subject to
subparagraph (A); and</text>
</clause><clause display-inline="no-display-inline" id="H2B779A7E33A644E1B52D033EFC0B1E05"><enum>(ii)</enum><text>is subject to
review by the
Secretary.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection></section><section id="H6D4D891A27624ADA8377A33E5A393AA6"><enum>2304.</enum><header>Administrative
requirements for conservation programs</header><text display-inline="no-display-inline">Section 1244 of the Food Security Act of
1985 (16 U.S.C. 3844) is amended—</text>
<paragraph id="H447771D8971D4CE9A5A4A1E78CE0FA35"><enum>(1)</enum><text>in subsection
(c)—</text>
<subparagraph id="HD3805CBBFF3D42EE9AE9A4F0A927D71D"><enum>(A)</enum><text>in paragraph
(1)(C), by striking <quote>wetlands reserve program</quote> and inserting
<quote>easement benefits program</quote>; and</text>
</subparagraph><subparagraph id="H42E0CA6CD01C4A3993C596DA496EA8F1"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>environmental quality incentives program</quote> and
inserting <quote>working land program</quote>; and</text>
</subparagraph></paragraph><paragraph id="H3795A9420AC14340A7964D4902765C19"><enum>(2)</enum><text display-inline="yes-display-inline">by striking subsection (i) and inserting
the following:</text>
<quoted-block display-inline="no-display-inline" id="HC8748A6FE4EA4ED69339792F5A990316" style="OLC">
<subsection id="H43DED284C12F4F2791873FCCAB8AEBC3"><enum>(i)</enum><header>Conservation
application process</header>
<paragraph id="H5C8024546BCE420FB506E2EFBC2AB91E"><enum>(1)</enum><header>Initial
application</header>
<subparagraph id="HABF28CC7BA2F4B1E91C43694A8DFAAF8"><enum>(A)</enum><header>In
general</header><text>Not later than 1 year after the date of enactment of this
subsection, the Secretary shall establish a single, simplified application for
eligible entities to use in initially requesting assistance under any
conservation program administered by the Secretary (referred to in this
subsection as the <term>initial application</term>).</text>
</subparagraph><subparagraph id="H27580F427FB24621A3AB0BF6A2CC24AB"><enum>(B)</enum><header>Requirements</header><text>To
the maximum extent practicable, the Secretary shall ensure that—</text>
<clause id="H8C976FEC423046CB978EBE0659053EE1"><enum>(i)</enum><text>a
conservation program applicant is not required to provide information that is
duplicative of information or resources already available to the Secretary for
that applicant and the specific operation of the applicant; and</text>
</clause><clause id="H197FCD12192144889A623B085A5E3BBE"><enum>(ii)</enum><text>the initial
application process is streamlined to minimize complexity and
redundancy.</text>
</clause></subparagraph></paragraph><paragraph id="H500AF1F00F19404EB01E63E8BFDACC2A"><enum>(2)</enum><header>Review of
application process</header>
<subparagraph id="H645C50E3A8E94393A4C39B68CB797AE3"><enum>(A)</enum><header>In
general</header><text>Not later than 1 year after the date of enactment of this
subsection, the Secretary shall review the application process for each
conservation program administered by the Secretary, including the forms and
processes used to receive assistance requests from eligible program
participants.</text>
</subparagraph><subparagraph id="H45423FBC0AB1413D99A7ECCF7EA630C7"><enum>(B)</enum><header>Requirements</header><text>In
carrying out the review, the Secretary shall determine what information the
participant is required to submit during the application process,
including—</text>
<clause id="H92F24339AC364A3084F8ED76D8809626"><enum>(i)</enum><text>identification
information for the applicant;</text>
</clause><clause id="H08D81EB25882496C8AB1CF96281CD69B"><enum>(ii)</enum><text>identification
and location information for the land parcel or tract of concern;</text>
</clause><clause id="H50A447CC11004B32A943731B343336D6"><enum>(iii)</enum><text>a general
statement of the need or resource concern of the applicant for the land parcel
or tract; and</text>
</clause><clause id="HA22B587E18C74CC49CFD48EE7BDD91E4"><enum>(iv)</enum><text>the minimum
amount of other information the Secretary considers to be essential for the
applicant to provide personally.</text>
</clause></subparagraph></paragraph><paragraph id="HA58C14BE99164DD58AE1EB56F9FB61D0"><enum>(3)</enum><header>Revision and
streamline</header>
<subparagraph id="H274D5D8AB7DB40D1A379FDDAC104C126"><enum>(A)</enum><header>In
general</header><text>Not later than 1 year after the date of enactment of this
subsection, the Secretary shall carry out a revision of the application forms
and processes for each conservation program administered by the Secretary to
enable use of information technology to incorporate appropriate data and
information concerning the conservation needs and solutions appropriate for the
land area identified by the applicant.</text>
</subparagraph><subparagraph id="H536176DEAB0C4844A48F4586EFB3BDFD"><enum>(B)</enum><header>Goal</header><text>The
goal of the revision shall be to streamline the application process to minimize
the burden placed on applicants.</text>
</subparagraph></paragraph><paragraph id="HB1DF07769B304F1A98417D06083F6766"><enum>(4)</enum><header>Conservation
program application</header>
<subparagraph id="H392F37A55768445A91F7CB7383287275"><enum>(A)</enum><header>In
general</header><text>Once the needs of an applicant have been adequately
assessed by the Secretary, or a third party provider under section 1242, based
on the initial application, in order to determine the 1 or more programs under
this title that best match the needs of the applicant, with the approval of the
applicant, the Secretary may convert the initial application into the specific
application for assistance for the relevant conservation program.</text>
</subparagraph><subparagraph id="H9A7B4D16CD584239804ADB59CE318317"><enum>(B)</enum><header>Secretarial
burden</header><text>To the maximum extent practicable, the Secretary
shall—</text>
<clause id="H506D462D85314C2DA45C71087EC93DC6"><enum>(i)</enum><text>complete the
specific application for conservation program assistance for each applicant;
and</text>
</clause><clause id="H92BC4BD6AB74434E95ECBDF1A24D1F63"><enum>(ii)</enum><text>request only that
specific further information from the applicant that is not already available
to the Secretary.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDA0F332CFCFB4182AC3C38C960AC8C4A"><enum>(5)</enum><header>Implementation
and notification</header><text>Not later than 1 year 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 written notification that the Secretary
has fulfilled the requirements of this
subsection.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HD5680AD73912403DA65C7B286E616EE7"><enum>2305.</enum><header>Repeal of
healthy forests reserve program</header><text display-inline="no-display-inline">Title V of the Healthy Forests Restoration
Act of 2003 (16 U.S.C. 6571 et seq.) is repealed.</text>
</section></subtitle><enum>III</enum><header>Nutrition</header>
<subtitle id="H931C9196CBE048AFBD0E3473CF4B249F"><enum>A</enum><header>Supplemental
nutrition assistance program</header>
<section id="H149F4799D30F4C018794AD09FAD6945A"><enum>3001.</enum><header>Categorical
eligibility limitations</header><text display-inline="no-display-inline">Section 5 of the Food and Nutrition Act of
2008 (7 U.S.C. 2014) is amended—</text>
<paragraph id="H71CBCFD9DDE847E4B926FE5AB31B8646"><enum>(1)</enum><text>by striking the
section heading and all that follows through <quote>(a) Participation</quote>
and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H2C454F7E0B544D9AAE8ECBF3CFFA563A" style="OLC">
<section id="HD96C8205D1D643BAB0603859DA910833"><enum>5.</enum><header>Eligible
households</header>
<subsection id="HC71D17704EEB4898AD22FECAF0A3239A"><enum>(a)</enum><header>Requirements</header>
<paragraph id="H4D405E0C20AA4BDE8B3CF37A13C4C758"><enum>(1)</enum><header>In
general</header><text>Participation</text>
</paragraph></subsection></section><after-quoted-block>;
</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6FEAD42FBCA44BAC9CC33CA77FFDD9DD"><enum>(2)</enum><text>in subsection
(a)—</text>
<subparagraph id="H7F4B960808DE4D9491082B52873A36A2"><enum>(A)</enum><text>by striking the
second sentence and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H2E19EA4482DC453AB1D4AD06BD47C918" style="OLC">
<paragraph id="H9ED01418394141A1A1E4C1C37C92BDF3"><enum>(2)</enum><header>Recipients of
other Federal benefits</header><text>Except as provided in section 3(n)(4) and
subsections (b), (d)(2), and (g) of section 6, a household shall be eligible to
participate in the supplemental nutrition assistance program if each member of
the household receives—</text>
<subparagraph id="H6248A8D1F0FF4788A57FE2F49EB493D2"><enum>(A)</enum><text>cash assistance in
the form of ongoing basic needs benefit payments for financially needy families
under the program of block grants to States for temporary assistance for needy
families established under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.);</text>
</subparagraph><subparagraph id="HA931B9911FED4AECBD60253C979F65F6"><enum>(B)</enum><text>cash assistance
under the supplemental security income program established under title XVI of
that Act (42 U.S.C. 1381 et seq.); or</text>
</subparagraph><subparagraph id="HB4EAAD7A122F471A935AD9FAD99A1C86"><enum>(C)</enum><text>aid to the aged,
blind, or disabled under title I, X, XIV, or XVI of that Act (42 U.S.C. 301 et
seq.).</text>
</subparagraph></paragraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H4883F15D717C4E5C9B0F95C69A16A003"><enum>(B)</enum><text>in the third
sentence, by striking <quote>Except for sections 6, 16(e)(1), and section
3(n)(4), households</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H5FCC987F0A134584909486E6DCE0EEBE" style="OLC">
<paragraph id="H334F32A960C34933BE8B5FB6FA710B90"><enum>(3)</enum><header>General
assistance</header><text>Except as provided in sections 3(n)(4), 6, and
16(e)(1), a household</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H2EBF3DDD8651406294E0BDD2A62C4762"><enum>(C)</enum><text>in the fourth
sentence, by striking <quote>Assistance</quote> and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="HCA27DBD806A94116BF3CD3D4D64B0EBF" style="OLC">
<paragraph id="H0AC707CE76E5441C9682F4FCD0BE388B"><enum>(4)</enum><header>Applications</header><text>Assistance</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HD88B673B809A46BF9953750F32978595"><enum>(3)</enum><text>in subsection
(j)—</text>
<subparagraph id="H5E048F736E23441FB6785D6C85690BDD"><enum>(A)</enum><text>by inserting
<quote>cash assistance in the form of</quote> before <quote>supplemental
security income benefits</quote>; and</text>
</subparagraph><subparagraph id="HC7E44134901C4EA792C2B791F5DDFB0E"><enum>(B)</enum><text>by striking
<quote>or who receives benefits</quote> and inserting <quote>or who receives
cash assistance</quote>.</text>
</subparagraph></paragraph></section><section id="H42A8EF7B5A2A4937BD2D77DB84ACBD9D"><enum>3002.</enum><header>Repeal of
funding for employment and training programs</header>
<subsection id="HB6BE9DDA15B5458C8181559AA7B90A12"><enum>(a)</enum><header>In
general</header><text>Section 6(d)(4) of the Food and Nutrition Act of 2008 (7
U.S.C. 2015(d)(4)) is amended—</text>
<paragraph id="H38C758E92C7E4C1D950CC0504192633B"><enum>(1)</enum><text>by striking
<quote>(A) <header-in-text level="subparagraph" style="OLC">In
general</header-in-text>.—</quote>; and all that follows through <quote>the
following components</quote> in the matter preceding clause (i) in subparagraph
(B) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H869010AD47084FE9B025F964D00AB9B9" style="OLC">
<subparagraph id="H2C6A6A96836E4C209B78D8B5F05F6C23"><enum>(A)</enum><header>Definition of
employment and training program</header><text>In this Act, the term
<term>employment and training program</term> means a Federal, State, or private
program not administered by the Secretary or funded through the Food and
Nutrition Service that contains 1 or more of the following
components</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HB9791B0EBC4F4D209DBF7624A40C32FB"><enum>(2)</enum><text>by striking clause
(viii) in subparagraph (A) (as designated in paragraph (1)) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="H56B5AF66CEEA480C9746F1DF8C56F12A" style="OLC">
<clause id="H2E4F254DA5B645998E100E33A743162C"><enum>(viii)</enum><text>As approved by
the State, other employment, educational and training programs, projects, and
experiments, such as a supported work program, aimed at accomplishing the
purpose of the employment and training
program.</text>
</clause><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HD92FEC3FABB841C49DFC7E4B5591D3F5"><enum>(3)</enum><text>in subparagraph
(E), by striking <quote>subparagraph (D)</quote> and inserting
<quote>subparagraph (C)</quote>;</text>
</paragraph><paragraph id="HF5BBADC357BD4499B65F9559D6F0C6F0"><enum>(4)</enum><text>by striking
subparagraphs (H) through (K); and</text>
</paragraph><paragraph id="HE7FC26EB21D34AB98F6C94968A653EB4"><enum>(5)</enum><text>by redesignating
subparagraphs (C) through (G) and (L) and (M) as subparagraphs (B) through (F)
and (G) and (H), respectively.</text>
</paragraph></subsection><subsection id="HDC23C1EAE8AB449A98E2B1B7C8454839"><enum>(b)</enum><header>Repeal of
funding</header><text>Section 16 of the Food and Nutrition Act of 2008 (7
U.S.C. 2025) is amended by striking subsection (h).</text>
</subsection><subsection id="H63082CA2A57544ADA11075F3917F628D"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="H1F70F511062948E986418B2F574B037A"><enum>(1)</enum><text>Section 5(d) of
the Food and Nutrition Act of 2008 (7 U.S.C. 2014(d)) is amended—</text>
<subparagraph id="HA7F4BD6E7AD742BFBBDCD82704D9BE3E"><enum>(A)</enum><text>by striking
paragraph (14); and</text>
</subparagraph><subparagraph id="H236FA880FC3D45E78C36579140B35EFC"><enum>(B)</enum><text>by redesignating
paragraphs (15) through (19) as paragraphs (14) through (18),
respectively.</text>
</subparagraph></paragraph><paragraph id="HB684AC81F3C64208B342CC3B0F9D1DAC"><enum>(2)</enum><text>Section
17(b)(1)(B)(iv)(III) of the Food and Nutrition Act of 2008 (7 U.S.C.
2026(b)(1)(B)(iv)(III)) is amended—</text>
<subparagraph id="H7A1CC853FF4F4E859F80450BD1FFE463"><enum>(A)</enum><text>in item (dd), by
striking <quote>, (4)(F)(i) or (4)(K)</quote> and inserting <quote>or
(4)(E)</quote>; and</text>
</subparagraph><subparagraph id="H539E886D8D07401EB04F3C8EE84EDC33"><enum>(B)</enum><text>in item (hh), by
striking <quote>(g), (h)(2), or (h)(3) of section 16</quote> and inserting
<quote>or (g) of section 16</quote>.</text>
</subparagraph></paragraph></subsection></section><section id="H1E4EDD67D4CC42749120B4924630DA27"><enum>3003.</enum><header>Repeal of
incentive payments to States with low SNAP benefit allocation error
rates</header>
<subsection id="H0F48B037094C41B2A099B81E80D13DB9"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 16 of the
Food and Nutrition Act of 2008 (7 U.S.C. 2025) is amended by striking
subsection (d).</text>
</subsection><subsection id="H3F5EF4EFD266420BBD70C2E749C4425B"><enum>(b)</enum><header>Conforming
amendments</header><text>Section 16 of the Food and Nutrition Act of 2008 (7
U.S.C. 2025) is amended—</text>
<paragraph id="HC2CD8647148A4117A59C2E419F9C5F66"><enum>(1)</enum><text>in subsection (c),
by striking <quote>, or performance under the performance measures under
subsection (d)</quote> each place it appears in paragraphs (4) and (5);
and</text>
</paragraph><paragraph id="H6279AEA73D27479ABC24C2D946D9C428"><enum>(2)</enum><text>in subsection
(i)(1), by striking <quote>as defined in subsection (d)(1))</quote> and
inserting <quote>as defined in guidance issued by the Secretary</quote>.</text>
</paragraph></subsection></section><section id="H84E8383F09AA45A393EA04DFAA647610"><enum>3004.</enum><header>Quality
control</header>
<subsection id="HD1DBAA2DFEC8445F885E533ADBDF8AFF"><enum>(a)</enum><header>In
general</header><text>Section 16(c) of the Food and Nutrition Act of 2008 (7
U.S.C. 2025(c)) is amended—</text>
<paragraph id="HAC11C409B9664917A90A6AE6E6F8B8F9"><enum>(1)</enum><text>in paragraph
(1)—</text>
<subparagraph id="HD3CF7C4DB7144CDFAF053992E2656C3D"><enum>(A)</enum><text>in subparagraph
(D)(i)(II), by inserting <quote>except as provided in clause (iii),</quote>
before <quote>require</quote>; and</text>
</subparagraph><subparagraph id="HFD5231AFAE1844A3A5FC13DA63E09A7F"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HE60A5A16B370461AB983B4E35B9A7172" style="OLC">
<subparagraph id="HCE12EDEFE5E84F38ACFF061EE81F7F36"><enum>(H)</enum><header>States in
liability status for a third consecutive fiscal year</header>
<clause id="H1465B6B787BC415CAC04FD017438B151"><enum>(i)</enum><header>In
general</header><text>If a liability amount has been established for a State
agency under subparagraph (C) for 3 or more consecutive fiscal years, the
Secretary shall require the State to pay the entire liability amount for those
fiscal years.</text>
</clause><clause id="HEF584FED40AF4FDC824BACB0DFD42F16"><enum>(ii)</enum><header>Alternatives to
full payment not available</header><text>Subparagraph (D) shall not apply to a
State agency described in clause (i).</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H4E92CC241BE3461CBE09384A992376A3"><enum>(2)</enum><text>by redesignating
paragraph (9) as paragraph (10); and</text>
</paragraph><paragraph id="H1B05C5C6649F4F6EBC6CBB49615B24FA"><enum>(3)</enum><text>by inserting after
paragraph (8) the following:</text>
<quoted-block display-inline="no-display-inline" id="HBD9654C55AE1458FABF36ED024CD384F" style="OLC">
<paragraph id="H4ADC7BC8D18642278D24E68F06478D82"><enum>(9)</enum><header>Penalty for
negative error rate</header>
<subparagraph id="HF1C2E3197ABD49599BD38AA87499CD1A"><enum>(A)</enum><header>Definitions</header><text>In
this paragraph:</text>
<clause id="H64CA3D9C7ED14460AF09513A49BFFD85"><enum>(i)</enum><header>Affected State
agency</header><text>The term <term>affected State agency</term> means a State
agency that maintains, for 2 or more consecutive fiscal years, a negative error
rate that is more than 50 percent higher than the national average negative
error rate, as determined by the Secretary.</text>
</clause><clause commented="no" id="HADBF839DBA614CEA89DDB210C74E170E"><enum>(ii)</enum><header>Average
negative error rate</header><text>The term <term>average negative error
rate</term> means the product obtained by multiplying—</text>
<subclause commented="no" id="HE2A888B35B154906B6DB9622C5525012"><enum>(I)</enum><text>the negative error
rate of a State agency; and</text>
</subclause><subclause commented="no" id="H6542B132CC654FFEAF93B8C79B202A82"><enum>(II)</enum><text>the proportion of
the total negative caseload of that State agency for the fiscal year, as
calculated under the quality control sample at the time of the notifications
issued under subparagraph (C), as determined by the Secretary.</text>
</subclause></clause><clause id="HDF8B31F388CF4123A678A72BBD3011DC"><enum>(iii)</enum><header>Negative error
rate</header>
<subclause id="HF732C295B0344F3187285EC2B3C175F7"><enum>(I)</enum><header>In
general</header><text>The term <term>negative error rate</term> means, for a
State agency, the proportion that—</text>
<item id="HFFD6EE0504544CD49D0F5403E59CCE4A"><enum>(aa)</enum><text>the
total number of actions erroneously taken by the State agency to deny
applications or suspend or terminate benefits of a household participating in
the supplemental nutrition assistance program established under this Act, as
determined by the Secretary, in that fiscal year; bears to</text>
</item><item id="H87D1819902F2407BB86BA897F6A77038"><enum>(bb)</enum><text>the
total number of actions taken by the State agency to deny applications or
suspend or terminate benefits of households participating in the supplemental
nutrition assistance program established under this Act in that fiscal
year.</text>
</item></subclause><subclause id="H44DE4386CC3A4470BD1B5EAE6A786E7F"><enum>(II)</enum><header>Exclusions</header><text>The
term <term>negative error rate</term> does not include—</text>
<item id="H9B8EDAA26CAF43B3912D129EA345250C"><enum>(aa)</enum><text>an
error resulting from the application of regulations promulgated under this Act
during the period—</text>
<subitem id="H365ABCC1EA264F408C5461AD0F7B0A6B"><enum>(AA)</enum><text>beginning on the
date of enactment of this clause; and</text>
</subitem><subitem id="H87815BD74B5549A8808380945B9A7492"><enum>(BB)</enum><text>ending on date
that is 121 days after the date on which the regulation is implemented;
and</text>
</subitem></item><item id="HBFFAAC40F0374147B836DD255313D3FC"><enum>(bb)</enum><text>an
error resulting from—</text>
<subitem id="H0FF7040ED4EB414DB255B095DD6A4BE9"><enum>(AA)</enum><text>the use by a
State agency of correctly processed information concerning households or
individuals received under a Federal program; or</text>
</subitem><subitem id="H3128087FC94745E78F3608D57030318A"><enum>(BB)</enum><text>an action that is
based on policy information that is approved or disseminated, in writing, by
the Secretary or a designee of the Secretary.</text>
</subitem></item></subclause></clause></subparagraph><subparagraph id="HE5E9FB00249145DAA04562535E7850FC"><enum>(B)</enum><header>Penalty
amount</header><text>For fiscal year 2012 and each subsequent fiscal year, the
amount of the penalty for an affected State agency shall be equal to 5 percent
of the amount otherwise payable under subsection (a).</text>
</subparagraph><subparagraph id="H2E641270B4EA491BB0DEFD779AE29A86"><enum>(C)</enum><header>Information
reporting by States</header>
<clause id="H408DC99630EA477DAC047C9185AA55D0"><enum>(i)</enum><header>In
general</header><text>For each fiscal year, each State agency shall
expeditiously submit to the Secretary data concerning the operations of the
State agency sufficient for the Secretary to establish the negative error rate
and penalty amount of the State agency.</text>
</clause><clause id="H261FF5EE89D44C1686380445146BF394"><enum>(ii)</enum><header>Relevant
information</header><text>The Secretary may require a State agency to report
any factors necessary to determine the negative error rate of the State
agency.</text>
</clause><clause id="H283E723366FD44DFB722741E1726F945"><enum>(iii)</enum><header>Information
not reported</header><text>If a State agency fails to report information
required by the Secretary, the Secretary may use any information, as the
Secretary considers appropriate, to establish the negative error rate of the
State agency for the applicable year.</text>
</clause><clause commented="no" id="H7B33C7106AFC479193BC529668FD8642"><enum>(iv)</enum><header>National
average error rate</header><text>If a State agency fails to report information
required by the Secretary, the Secretary may use the national average negative
error rate to establish the negative error rate for the State agency.</text>
</clause></subparagraph><subparagraph id="H501A358144C8485690F700B375F9ADBC"><enum>(D)</enum><header>Announcement of
error rates</header>
<clause id="HBA0B7F012EF64006A55C2926192544B2"><enum>(i)</enum><header>Case
review</header><text>Not later than May 31 of each fiscal year, the case review
and all arbitration of State-Federal differences on negative error rates for
the previous fiscal year shall be completed.</text>
</clause><clause id="H93032F19E5E640199286CABD5CDDB2F5"><enum>(ii)</enum><header>Determination
and announcement</header><text>Not later than June 30 of each fiscal year, the
Secretary shall, for the previous fiscal year—</text>
<subclause id="H8AE33F6FF74A45389C8040A2CB76CB9F"><enum>(I)</enum><text>determine—</text>
<item id="H3F9C2084C6674880A272C9164678BEEC"><enum>(aa)</enum><text>final negative
error rates;</text>
</item><item id="H7DB827C8B8494CC18F631C05E766FA76"><enum>(bb)</enum><text>the
national average negative error rate; and</text>
</item><item id="HB86953BD8EF24C6ABEA8C14D9B2972A3"><enum>(cc)</enum><text>penalty
amounts;</text>
</item></subclause><subclause id="H51F328AE6D01408A90C629E4988D1A1D"><enum>(II)</enum><text>notify affected
State agencies of the penalty amounts;</text>
</subclause><subclause id="H62D99A08072C43B5ACA9C2B97F1C2193"><enum>(III)</enum><text>provide a copy
of the notification under subclause (II) to the chief executive officer and the
legislature of the affected State; and</text>
</subclause><subclause id="HD5C64A6361F5449FA7F52D645087C1E4"><enum>(IV)</enum><text>establish a claim
against the State agency for the monetary penalty amount assessed against the
State agency.</text>
</subclause></clause></subparagraph><subparagraph id="H3558A442D991400DBB1A2E7B241C798E"><enum>(E)</enum><header>Review</header>
<clause id="H31C9B66921A14353AD47F96314BD6993"><enum>(i)</enum><header>In
general</header><text>For any fiscal year, if the Secretary imposes a penalty
amount against a State agency under subparagraph (D)(ii), the following
determinations of the Secretary shall be subject to administrative and judicial
review:</text>
<subclause id="H439295DB209F4D28B8B96E6751135303"><enum>(I)</enum><text>The final negative
error rate of the State agency.</text>
</subclause><subclause id="H53B0AFC936C2434B966B648815EE076A"><enum>(II)</enum><text>A determination
of the Secretary that the negative error rate of the State agency exceeds 50
percent of the national average negative error rate.</text>
</subclause><subclause id="H1923D68826CF4DD190754739E6EF511A"><enum>(III)</enum><text>The monetary
penalty amount assessed against the State agency.</text>
</subclause></clause><clause id="H37AE331826E64768AAD188B0656EB315"><enum>(ii)</enum><header>Determination
not reviewable</header><text>The national average negative error rate under
this paragraph shall not be subject to administrative or judicial
review.</text>
</clause></subparagraph><subparagraph id="HBB5F932B8E24435EBD418086CBFD81B2"><enum>(F)</enum><header>Payment of
penalty amount</header>
<clause id="HD830B4B15F8E4462B23AFD6718A46ABD"><enum>(i)</enum><header>In
general</header><text>On completion of administrative and judicial review under
subparagraph (E), an affected State agency shall pay to the Secretary the
penalty amount designated under subparagraph (D)(ii), subject to the findings
of the administrative or judicial review, not later than September 30 of the
fiscal year for which the claim has been issued to the State agency.</text>
</clause><clause id="H5363F6E57BE84FAC9680A4C385A45885"><enum>(ii)</enum><header>Alternative
method of collection</header>
<subclause id="H567E764052FE41AE905A4C412CD64C2B"><enum>(I)</enum><header>In
general</header><text>If a State agency fails to make a payment under clause
(i) by September 30 of the fiscal year for which the claim has been issued to
the State agency, the Secretary may reduce any amount due to the State agency
under any other provision of this Act by the amount of the monetary penalty
established under subparagraph (D)(ii).</text>
</subclause><subclause id="H62806392C75C40DFBBA6BE2597924206"><enum>(II)</enum><header>Accrual of
interest</header><text>Interest on the amount owed shall not accrue until after
September 30 of the applicable fiscal
year.</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section></subtitle><subtitle id="H5DBD2D39860944E8A3B59685744EE346"><enum>B</enum><header>Extensions</header>
<section id="H7D15D9CA00BD4C09B58781C8A1DF2913"><enum>3101.</enum><header>Supplemental
nutrition assistance program</header>
<subsection id="H5BD7E9F4D02143E0AAC6ADC830241880"><enum>(a)</enum><header>Food
distribution program on Indian reservations</header><text display-inline="yes-display-inline">Section 4(b)(6)(F) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2013(b)(6)(F)) is amended by striking
<quote>2012</quote> and inserting <quote>2017</quote>.</text>
</subsection><subsection id="H12BFA4D9D931494784869A3405DD4919"><enum>(b)</enum><header>Projects To
evaluate health and nutrition promotion in the supplemental nutrition
assistance program</header><text display-inline="yes-display-inline">Section
17(k)(5)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 2026(k)(5)(A)) is
amended by striking <quote>2012</quote> and inserting
<quote>2017</quote>.</text>
</subsection><subsection id="H391CF337718A4A8F93EF8FAA4FC936FC"><enum>(c)</enum><header>Authorization of
appropriations</header><text display-inline="yes-display-inline">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 <quote>2012</quote> and inserting
<quote>2017</quote>.</text>
</subsection><subsection id="HE47554AA48774180A9805304F0E81F78"><enum>(d)</enum><header>Healthy urban
food enterprise development center</header><text display-inline="yes-display-inline">Section 25(h)(9) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2034(h)(9)) is amended—</text>
<paragraph commented="no" id="H10D1851F978C4B7B905E7509AAA071D0"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking
<quote>2011</quote> and inserting <quote>2017</quote>; and</text>
</paragraph><paragraph id="H16EA52A2486943DF9B0DDDB0677A1CB3"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking
<quote>fiscal year 2012</quote> and inserting <quote>each of fiscal years 2012
through 2017</quote>.</text>
</paragraph></subsection><subsection id="H1AAAE2191AFC4069AC6DE5F60C464906"><enum>(e)</enum><header>Emergency food
assistance</header>
<paragraph id="H0724DBB36B704D1B861F4F009AE8DB19"><enum>(1)</enum><header>Purchase of
commodities</header><text>Section 27(a) of the Food and Nutrition Act of 2008
(7 U.S.C. 2036(a)) is amended in paragraphs (1) and (2)(C) by striking
<quote>2012</quote> each place it appears and inserting
<quote>2017</quote>.</text>
</paragraph><paragraph id="HD4C05CA85EE14E9186480C4574F7E7AB"><enum>(2)</enum><header>Emergency food
program infrastructure grants</header><text display-inline="yes-display-inline">Section 209(d) of the Emergency Food
Assistance Act of 1983 (7 U.S.C. 7511a(d)) is amended by striking
<quote>2012</quote> and inserting <quote>2017</quote>.</text>
</paragraph></subsection><subsection id="H4495081B5CBC49EB97B85A094F43ABD9"><enum>(f)</enum><header>Technical and
conforming amendments</header>
<paragraph id="H42AB1CFC73B54718916EFA87CC613AF9"><enum>(1)</enum><text>Section 3 of the
Food and Nutrition Act of 2008 (7 U.S.C. 2012) is amended—</text>
<subparagraph id="HB49C9A88AB524B39B8E7B8AE132DFB9A"><enum>(A)</enum><text>in subsection (g),
by striking <quote>coupon,</quote> and inserting <quote>coupon</quote>;</text>
</subparagraph><subparagraph id="HC67F5B2E91B848519EE75A1D295BF838"><enum>(B)</enum><text>in subsection
(k)(7), by striking <quote>or are</quote> and inserting
<quote>and</quote>;</text>
</subparagraph><subparagraph id="HFDD4CBD31F8A44859C44021610A82BD0"><enum>(C)</enum><text>by striking
subsection (l);</text>
</subparagraph><subparagraph id="H809DFCC4D889416D852381CCB3A36B8E"><enum>(D)</enum><text>by redesignating
subsections (m) through (t) as subsections (l) through (s), respectively;
and</text>
</subparagraph><subparagraph id="HDBA8D19FAE2444CC917DC6BF7F0CB2F5"><enum>(E)</enum><text>by inserting after
subsection (s) (as so redesignated) the following:</text>
<quoted-block display-inline="no-display-inline" id="H13EBB98C4E174E7683DC0E99D8389A3D" style="OLC">
<subsection id="H5ED59972060E4CC4828AF838570D6151"><enum>(t)</enum><text><quote>Supplemental
nutritional assistance program</quote> means the program operated pursuant to
this
Act.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H035FD1AB6C674AA3A32ED98A079CDBF1"><enum>(2)</enum><text>Section 4(a) of
the Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)) is amended in the last
sentence by striking <quote>benefits</quote> and inserting
<quote>Benefits</quote>.</text>
</paragraph><paragraph id="H38CFBB17ADF14493A84C0C5773196359"><enum>(3)</enum><text>Section 5 of the
Food and Nutrition Act of 2008 (7 U.S.C. 2014) is amended—</text>
<subparagraph id="HCB5DCA5F957B471AA826E2ED9CAEA570"><enum>(A)</enum><text>in the last
sentence of subsection (i)(2)(D), by striking <quote>section 13(b)(2)</quote>
and inserting <quote>section 13(b)</quote>; and</text>
</subparagraph><subparagraph id="H33AA701B74A142A391A52AF244A6CCE3"><enum>(B)</enum><text>in subsection
(k)(4)(A), by striking <quote>paragraph (2)(H)</quote> and inserting
<quote>paragraph (2)(G)</quote>.</text>
</subparagraph></paragraph><paragraph id="H01E074626BA846459AE491DF3E8BDA88"><enum>(4)</enum><text>Section 7(h) of
the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)) is amended by
redesignating the second paragraph (12) (relating to interchange fees) as
paragraph (13).</text>
</paragraph><paragraph id="H1A95A88F3D754105AC1062C901E30233"><enum>(5)</enum><text>Section 9(a) of
the Food and Nutrition Act of 2008 (7 U.S.C. 2018(a)) is amended by indenting
paragraph (3) appropriately.</text>
</paragraph><paragraph id="H2FEE95CD3CF642179F803232EE14B9B6"><enum>(6)</enum><text>Section 12 of the
Food and Nutrition Act of 2008 (7 U.S.C. 2021) is amended—</text>
<subparagraph id="H97EC35C1D7914B85A38DA89BCA31CFBB"><enum>(A)</enum><text>in subsection
(b)(3)(C), by striking <quote>civil money penalties</quote> and inserting
<quote>civil penalties</quote>; and</text>
</subparagraph><subparagraph id="HDD55116F1AF54D8BBC85A04B8BAF30E7"><enum>(B)</enum><text>in subsection
(g)(1), by striking <quote>(7 U.S.C. 1786)</quote> and inserting <quote>(42
U.S.C. 1786)</quote>.</text>
</subparagraph></paragraph><paragraph id="H7A3C355597364A54B24E5C8B84A2E7CC"><enum>(7)</enum><text>Section 15(b)(1)
of the Food and Nutrition Act of 2008 (7 U.S.C. 2024(b)(1)) is amended in the
first sentence by striking <quote>an benefit</quote> and inserting <quote>a
benefit</quote>.</text>
</paragraph><paragraph id="HD825AF9709474A00878ED913E3DFBCD8"><enum>(8)</enum><text>Section 16(a) of
the Food and Nutrition Act of 2008 (7 U.S.C. 2025(a)) is amended in the proviso
following paragraph (8) by striking <quote>as amended.</quote>.</text>
</paragraph><paragraph id="HA3AE4245C3784C79885A747500256826"><enum>(9)</enum><text>Section 18(e) of
the Food and Nutrition Act of 2008 (7 U.S.C. 2027(e)) is amended in the first
sentence by striking <quote>sections 7(f)</quote> and inserting <quote>section
7(f)</quote>.</text>
</paragraph><paragraph id="H43359C6A7D48423B98D79BBEBEDC4553"><enum>(10)</enum><text>Section
22(b)(10)(B)(i) of the Food and Nutrition Act of 2008 (7 U.S.C.
2031(b)(10)(B)(i)) is amended in the last sentence by striking <quote>Food
benefits</quote> and inserting <quote>Benefits</quote>.</text>
</paragraph><paragraph id="HE18CB87E129842C4B173DE5A0B16AE61"><enum>(11)</enum><text>Section
26(f)(3)(C) of the Food and Nutrition Act of 2008 (7 U.S.C. 2035(f)(3)(C)) is
amended by striking <quote>subsection</quote> and inserting
<quote>subsections</quote>.</text>
</paragraph><paragraph id="HC4A51B543E5446C9ABDF7C8AA3BECE9C"><enum>(12)</enum><text>Section 27(a)(1)
of the Food and Nutrition Act of 2008 (7 U.S.C. 2036(a)(1)) is amended by
striking <quote>(Public Law 98–8; 7 U.S.C. 612c note)</quote> and inserting
<quote>(7 U.S.C. 7515)</quote>.</text>
</paragraph><paragraph id="H1B832F98B0CE41389B3AD095AB264162"><enum>(13)</enum><text>Section 509 of
the Older Americans Act of 1965 (42 U.S.C. 3056g) is amended in the section
heading by striking <quote><header-in-text level="section" style="OLC">food
stamp programs</header-in-text></quote> and inserting <quote><header-in-text level="section" style="OLC">supplemental nutrition assistance
programs</header-in-text></quote>.</text>
</paragraph><paragraph id="H97F71EDA6FB94E2B88F592F73A9318BA"><enum>(14)</enum><text>Section
4115(c)(2)(H) of the Food, Conservation, and Energy Act of 2008 (Public Law
110–246; 122 Stat. 1871) is amended by striking <quote>531</quote> and
inserting <quote>454</quote>.</text>
</paragraph></subsection></section><section id="HAE07F0C29C62402C846B32A0737BCCCC"><enum>3102.</enum><header>Commodity
distribution programs</header>
<subsection id="H00FE2EFA3AF347438B7B9DB2196734AB"><enum>(a)</enum><header>Commodity
distribution program</header><text display-inline="yes-display-inline">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
<quote>2012</quote> and inserting <quote>2017</quote>.</text>
</subsection><subsection id="H44C50174DA0546118E247FC5C0E3FD65"><enum>(b)</enum><header>Commodity
supplemental food program</header><text display-inline="yes-display-inline">Section 5 of the Agriculture and Consumer
Protection Act of 1973 (7 U.S.C. 612c note; Public Law 93–86) is
amended—</text>
<paragraph id="HE4D10E8E42834602B65DB9698D4F502F"><enum>(1)</enum><text>in paragraphs (1)
and (2)(B) of subsection (a), by striking <quote>2012</quote> each place it
appears and inserting <quote>2017</quote>; and</text>
</paragraph><paragraph id="H2BF7938E3DF44FDBA1D075081371F0C3"><enum>(2)</enum><text>in the first
sentence of subsection (d)(2), by striking <quote>2012</quote> and inserting
<quote>2017</quote>.</text>
</paragraph></subsection><subsection id="H9CA0CC9B94DD4DE9A73DC0BFB282BA4E"><enum>(c)</enum><header>Distribution of
surplus commodities to special nutrition projects</header><text display-inline="yes-display-inline">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 <quote>2012</quote> and inserting <quote>2017</quote>.</text>
</subsection><subsection id="HDEB10472D4A2484D8C987E7CD3DC418F"><enum>(d)</enum><header>Technical and
conforming amendments</header>
<paragraph id="H3DCF4802A16346ACB143F134BD6B86DE"><enum>(1)</enum><text>Section 3 of the
Commodity Distribution Reform Act and WIC Amendments of 1987 (7 U.S.C. 612c
note; Public Law 100–237) is amended—</text>
<subparagraph id="HFBB04122F0C94A1780466E301261EE40"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="H22BCCC83D7614B91AA448DAD1A8C84C7"><enum>(i)</enum><text>in
paragraph (2), by striking subparagraph (B) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H20394CF323B0485993B90473FA2041DD" style="OLC">
<subparagraph id="H9D630DA948804807BC5E5CC50541D61E"><enum>(B)</enum><text>the supplemental
nutrition assistance program established under the Food and Nutrition Act of
2008 (7 U.S.C. 2011 et seq.);</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="H6C83E5509D4F4E8E8399520171FAAE03"><enum>(ii)</enum><text>in
paragraph (3)(D), by striking <quote>the Committee on Education and
Labor</quote> and inserting <quote>the Committee on Education and the
Workforce</quote>;</text>
</clause></subparagraph><subparagraph id="HCDF6725B48D3428390D4BBE4D26A03B7"><enum>(B)</enum><text>in subsection
(b)(1)(A)(ii), by striking <quote>section 32 of the Agricultural Adjustment Act
(7 U.S.C. 601 et seq.)</quote> and inserting <quote>section 32 of the Act of
August 24, 1935 (7 U.S.C. 612c)</quote>;</text>
</subparagraph><subparagraph id="H4210237E8E7F4A8989D5142D358CF619"><enum>(C)</enum><text>in subsection
(e)(1)(D)(iii), by striking subclause (II) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HCF25E87A45494284BAB58647A64CC77D" style="OLC">
<subclause id="H56A582B578714EE8BA51E02F6F170023"><enum>(II)</enum><text>the supplemental
nutrition assistance program established under the Food and Nutrition Act of
2008 (7 U.S.C. 2011 et seq.);</text>
</subclause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H84E45F2CFAA34C8C96859D79377CAF87"><enum>(D)</enum><text>in subsection (k),
by striking <quote>the Committee on Education and Labor</quote> and inserting
<quote>the Committee on Education and the Workforce</quote>.</text>
</subparagraph></paragraph></subsection></section><section id="HADA11A0AEED44B539BE47E3328CDC624"><enum>3103.</enum><header>Miscellaneous</header>
<subsection id="H72607BB4B4A843B08CE5D1B2F0FBF261"><enum>(a)</enum><header>Purchase of
fresh fruits and vegetables for distribution to schools and service
institutions</header><text display-inline="yes-display-inline">Section 10603(b)
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 612c–4(b)) is
amended by striking <quote>2012</quote> and inserting
<quote>2017</quote>.</text>
</subsection><subsection id="HD9B0838660CB4350AFD759919DFA8EBA"><enum>(b)</enum><header>Seniors farmers'
market nutrition program</header><text display-inline="yes-display-inline">Section 4402(a) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 3007(a)) is amended by striking by
striking <quote>2012</quote> and inserting <quote>2017</quote>.</text>
</subsection><subsection id="H1FFA12C93E7D4F6CB935D25E593EAFC2"><enum>(c)</enum><header>Nutrition
information and awareness program</header><text display-inline="yes-display-inline">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 <quote>2012</quote> and inserting
<quote>2017</quote>.</text>
</subsection><subsection id="HE22376E0FCB144B687E75378BAEC29D7"><enum>(d)</enum><header>Hunger-Free
communities</header><text display-inline="yes-display-inline">Section 4405(e)
of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 7517(e)) is amended
by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text>
</subsection></section></subtitle><enum>IV</enum><header>Energy from Rural
America</header>
<section id="HF4185EB41CD6473CB7EFEBF32D3E39D4"><enum>4001.</enum><header>Definitions</header><text display-inline="no-display-inline">Section 9001 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8101) is amended—</text>
<paragraph id="HF6D2BE9B3AA54529AB98AF2873E83F67"><enum>(1)</enum><text>in paragraph
(3)—</text>
<subparagraph id="H9E69970A64144ADAA4EE72272C8AD023"><enum>(A)</enum><text>in subparagraph
(B)(iii), by inserting <quote>post-recycled municipal solid waste, sewage
waste,</quote> before <quote>and yard waste</quote>; and</text>
</subparagraph><subparagraph id="H32ED49B3230A497A9168249BB45456E4"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H549BFDFAC97B4124999D1B123952A177" style="OLC">
<subparagraph id="H916BA8A31A404C5A9BD3623F27E24204"><enum>(C)</enum><header>Exclusion</header><text>The
term <term>advanced biofuel</term> does not include any fuel for which—</text>
<clause id="H57C895A4266C496994AD9F57119C2A01"><enum>(i)</enum><text>more than 4
percent of the fuel (determined by weight) is any combination of water and
sediment; or</text>
</clause><clause id="HCA002A06F7E44E9B9C9574DB9CE2A885"><enum>(ii)</enum><text>the ash content
of the fuel is more than 1 percent (determined by
weight).</text>
</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H74FFABB90C89449380D0F41DB398A107"><enum>(2)</enum><text>in paragraph
(6)—</text>
<subparagraph id="H5F661C6EB923415AAF2E42330FCBAF6C"><enum>(A)</enum><text>in subparagraph
(D), by striking the period at the end and inserting <quote>;
and</quote>;</text>
</subparagraph><subparagraph id="HA9C1D739A69044639CBBAB7E08458D46"><enum>(B)</enum><text>by redesignating
subparagraphs (A) through (D) as clauses (i) through (iv), respectively, and
indenting appropriately;</text>
</subparagraph><subparagraph id="H3801B9A4448A4F38B4C746DE74763AE9"><enum>(C)</enum><text>by striking
<quote>a facility that converts</quote> and inserting the following: “a
facility that—</text>
<quoted-block display-inline="no-display-inline" id="H14C627B97ED94C779CE92072FDC3FC0E" style="OLC">
<subparagraph id="H1A96E490EA7141BABB21E410EF987C59"><enum>(A)</enum><text>converts</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H0EBC37769D4C4EC2B0C89D02C1DC9DC2"><enum>(D)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HF1450361D44C4F5DBF78C15FC344B2CF" style="OLC">
<subparagraph id="H806840A1D63F4B889885C643333BFDE5"><enum>(B)</enum><text>in the case of a
facility in existence as of the date of enactment of the
<short-title>Rural Economic Farm and Ranch Sustainability
and Hunger Act of 2011</short-title> that uses less than 90 percent biomass for
conversion, agrees to increase the use by the facility of biomass for
conversion purposes by a percentage increase, as determined by the Secretary
but not less than a substantial increase above the 5-year baseline for the
facility.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HBD45CF3B21F149CE8A671B9AA95934C6"><enum>(3)</enum><text>by redesignating
paragraphs (9) through (13) and (14) as paragraphs (10) through (14) and (17),
respectively;</text>
</paragraph><paragraph id="HB5875523948E4EBF80FECFBDA675EDB1"><enum>(4)</enum><text>by inserting after
paragraph (8) the following:</text>
<quoted-block display-inline="no-display-inline" id="H344982F6D25045C38B6E55C5EB23C676" style="OLC">
<paragraph id="H600D1507067247899ECB8A6BBC05A0CD"><enum>(9)</enum><header>Eligible rural
community</header><text>The term <term>eligible rural community</term> means a
community located in a rural area.</text>
</paragraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</paragraph><paragraph id="H5F8FF0420D2241A7B0028782428AC258"><enum>(5)</enum><text>in subparagraph
(B)(ii) of paragraph (13) (as redesignated by paragraph (2)) —</text>
<subparagraph id="HA9423463FD8C43D6BE4E79156F499D79"><enum>(A)</enum><text>in subclause
(III), by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="H2F86F6DCA7E34988B5027454CA9D4ED8"><enum>(B)</enum><text>in subclause (IV),
by striking the period at the end and inserting a semicolon; and</text>
</subparagraph><subparagraph id="H374EFE5DA70E4B44B4E297E69A821E2E"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H9F1023460A294536B5E100375DC2B8E9" style="OLC">
<subclause id="HCBD605271D2640FCA4A9E27DB57DA9B9"><enum>(V)</enum><text>post-recycled
municipal solid waste; and</text>
</subclause><subclause id="HCCE1BD3C686C43A19B4ED0E7C4286F99"><enum>(VI)</enum><text>sewage.</text>
</subclause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H03161CF7E59C48EB8C6FE261F212C78F"><enum>(6)</enum><text>by inserting after
paragraph (14) (as so redesignated) the following:</text>
<quoted-block display-inline="no-display-inline" id="H01A47E6B88F748D1B6D974D2E88E1F9C" style="OLC">
<paragraph id="H89613B2B9D784A2C8DEA144883828AEC"><enum>(15)</enum><header>Rural
area</header><text>The term <term>rural area</term> has the meaning given the
term in section 343(a)(13)(A) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1991(a)(13)(A)).</text>
</paragraph><paragraph id="H3A50D1E3DB274CA18A242B6782EDC2F6"><enum>(16)</enum><header>Rural school
district</header><text>The term <term>rural school district</term> means a
school district that serves 1 or more schools located in a rural
area.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HEBB9B52F1E174FC2B3F3989FF473A80F"><enum>4002.</enum><header>Biobased
markets program</header>
<subsection id="HE6581F995B434F6E95A2A0E29FD82157"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 9002 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8102) is
amended—</text>
<paragraph id="HBE29CFEEDEAF47039C6FC63973BF3F0B"><enum>(1)</enum><text>in subsection
(a)(4)—</text>
<subparagraph id="HC5DABD4D6CA043C8BB18D06907C9F5E4"><enum>(A)</enum><text>in subparagraph
(B)—</text>
<clause id="HE32C0173A6AA4B8899690D47EB8C0197"><enum>(i)</enum><text>in
the matter preceding clause (i), by inserting <quote>and to improve fiscal
transparency in Federal procurement</quote> after <quote>subparagraph
(A)</quote>; and</text>
</clause><clause id="H1A193782EAD540A18297BE22D324529A"><enum>(ii)</enum><text>in
clause (i)—</text>
<subclause id="H6343B414B1C34D3792F99F98F0B8CFDD"><enum>(I)</enum><text>in the matter
preceding subclause (I), by striking <quote>, to the maximum extent
practicable,</quote>; and</text>
</subclause><subclause id="H4FE2E06E85E24EA29149CD1EC377446D"><enum>(II)</enum><text>in subclause (V),
by striking <quote>and</quote> at the end;</text>
</subclause></clause><clause id="H5F2D1146A1E0409AA0639C3564E8DB04"><enum>(iii)</enum><text>in
clause (ii), by striking the period at the end and inserting <quote>;
and</quote>; and</text>
</clause><clause id="H46938EC61C584DF89170B64D6103EB33"><enum>(iv)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H1B87978319284A20B03E0B7530CCAEDC" style="OLC">
<clause id="H3599E42F6D1B410088EAFF1AF853F8F7"><enum>(iii)</enum><text>information
required to be submitted under clauses (i) and (ii) shall be made publicly
available on a website by the Office of Federal Procurement Policy not later
than 30 days after submission of the information to the Office of Federal
Procurement
Policy.</text>
</clause><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph></paragraph><paragraph id="H9773BD46393C4E6EBDFC59CA07FE078C"><enum>(2)</enum><text>in subsection
(b)—</text>
<subparagraph id="H7588646896A344F0806CFA9B7859FAB7"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>, in consultation with the Administrator,</quote>;</text>
</subparagraph><subparagraph id="HA34705368F484B79975A69ECE9517E81"><enum>(B)</enum><text>in paragraph
(2)—</text>
<clause id="H2D37029882F242C8A522EA4197F044D2"><enum>(i)</enum><text>by
striking <quote>(2) <header-in-text level="paragraph" style="OLC">Eligibility
criteria</header-in-text>.—</quote> and all that follows through <quote>(B)
<header-in-text level="subparagraph" style="OLC">Requirements</header-in-text>.—Criteria issued under subparagraph
(A)</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H209E429EE3924C16AFDAD329A637DD80" style="OLC">
<paragraph id="H3DB5ABDB334E4013B97DBA3337F747B8"><enum>(2)</enum><header>Requirements</header><text>Labels
issued under paragraph (1)</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="H03861EC421094C62AF3929404299E5FA"><enum>(ii)</enum><text>by
redesignating clauses (i) through (iii) as subparagraphs (A) through (C),
respectively, and indenting appropriately; and</text>
</clause></subparagraph><subparagraph id="HAAC75D279D1644B4A98DE64696EEFCFE"><enum>(C)</enum><text>in paragraph (3),
by striking <quote>criteria issued pursuant to</quote> and inserting
<quote>requirements described in</quote>;</text>
</subparagraph></paragraph><paragraph id="H216441AE6D3C4941B8843F40FCB46C3A"><enum>(3)</enum><text>by striking
subsection (c) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H24D3841FD8834B87B4C224239EA1B1D8" style="OLC">
<subsection id="H798859ABA1894AA39E56A65CCE3FDAD2"><enum>(c)</enum><header>Promotion</header>
<paragraph id="H14D26A4F3D394DB1AAA9CDC23E30C443"><enum>(1)</enum><header>In
general</header><text>The Secretary shall make competitive grants to eligible
entities to provide information to organizations that have large procurement
needs or vehicle fleets, or that produce products with which biobased products
or biofuels can be integrated (as determined by the Secretary), about the
benefits of biobased products or biofuels.</text>
</paragraph><paragraph id="H2607967F94934725A56F96F71FF39431"><enum>(2)</enum><header>Eligible
entities</header><text>To be eligible to receive a grant under paragraph (1),
an entity shall—</text>
<subparagraph id="H5A187E5629EC43C4912C832B75AFEB00"><enum>(A)</enum><text>be a nonprofit
organization or institution of higher education;</text>
</subparagraph><subparagraph id="H946C2F8B95B74A91BD46E3CD0A3CD94E"><enum>(B)</enum><text>have demonstrated
a knowledge of biobased product or biofuel production, use, or distribution;
and</text>
</subparagraph><subparagraph id="HE1F8A1C9A9E2449B87304D915EC076A6"><enum>(C)</enum><text>have demonstrated
the ability to conduct educational and technical support programs.</text>
</subparagraph></paragraph><paragraph id="H85813796BF2E4EC28BB60ED023DC86BB"><enum>(3)</enum><header>Limitation</header><text>Grants
made under this subsection may not be used for the marketing or promotion of
brand name
products.</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H40723E2B128B4A038198000F45821F14"><enum>(4)</enum><text>in subsection (d),
by striking <quote>this section</quote> and inserting <quote>subsection
(a)</quote>;</text>
</paragraph><paragraph id="HA5898AB99513467BA1CB782334132B9E"><enum>(5)</enum><text>by striking
subsections (e) through (g);</text>
</paragraph><paragraph id="H2CEF03405FAD46A4849C7CF83AA8E26F"><enum>(6)</enum><text>by redesignating
subsection (h) as subsection (e); and</text>
</paragraph><paragraph id="HAFDD35A0560740D5945DD6CAC2E66143"><enum>(7)</enum><text display-inline="yes-display-inline">in subsection (e) (as so
redesignated)—</text>
<subparagraph id="HE43424765B46451790A05EBB280BC3A4"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking <quote>this
section—</quote> and all that follows through the end of subparagraph (B) and
inserting <quote>this section $5,000,000 for each of fiscal years 2013 through
2017, of which not more than $2,000,000 may be used to make grants under
subsection (c).</quote>; and</text>
</subparagraph><subparagraph id="HD282DF83127844F481222187DBE7DCDD"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>this section</quote> and all that follows through
<quote>2012</quote> and inserting <quote>$3,000,000 for each of fiscal years
2013 through 2017.</quote></text>
</subparagraph></paragraph></subsection><subsection id="H0A21AAA244A74D11BC51947C9725D39E"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 944(c)(2)(A) of the Energy Policy Act of 2005
(42 U.S.C. 16253(c)(2)(A)) is amended by striking <quote>section 9002(h)(1) of
the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8102(h)(1)</quote>
and inserting <quote>section 9002(b) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 8102(b))</quote>.</text>
</subsection></section><section id="H24FD0FDF8BB24246B0447568E13D75A4"><enum>4003.</enum><header>Biorefinery
assistance</header><text display-inline="no-display-inline">Section 9003 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8103) is
amended—</text>
<paragraph id="HE3598D841BD14C40B9A5BB892F0C95C5"><enum>(1)</enum><text>by striking
subsections (a), (d), and (g);</text>
</paragraph><paragraph id="HA69F372F57CB44568604153D5BEBE22A"><enum>(2)</enum><text>by redesignating
subsections (b), (c), (e), (f), and (h) as subsections (a) through (e),
respectively;</text>
</paragraph><paragraph id="HE02D1194456C4E97AF1B1B6A172FA2B7"><enum>(3)</enum><text>in subsection (b)
(as so redesignated), by striking <quote>eligible entities—</quote> and all
that follows through <quote>(2) guarantees</quote> and inserting
<quote>eligible entities guarantees</quote>;</text>
</paragraph><paragraph id="HAE92F33C0773476B9847E12CA0D43BD0"><enum>(4)</enum><text>in subsection (c)
(as so redesignated)—</text>
<subparagraph id="H42CF5D5601D94C5EA8435941345E31C5"><enum>(A)</enum><text>in paragraph
(1)(C) —</text>
<clause id="H689ECDDA02B6487199BC880902B308C9"><enum>(i)</enum><text>in
the matter preceding clause (i), by striking <quote>subsection (c)(2)</quote>
and inserting <quote>subsection (b)</quote>;</text>
</clause><clause id="H02A9B825860F4309BA1B2BCCCB5710E3"><enum>(ii)</enum><text>in
clause (ix), by striking <quote>and</quote> at the end;</text>
</clause><clause id="H74167D1C71024F2E951BA36D956AF184"><enum>(iii)</enum><text>in
clause (x), by striking the period at the end and inserting <quote>;
and</quote>; and</text>
</clause><clause id="HF55C4ACEC090477998E7EB88A691EAF6"><enum>(iv)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H2094342F67D545EEA65D301030FB4A60" style="OLC">
<clause id="HAC2CB6E91E0B4AE2BB2F9C0524247AC7"><enum>(xi)</enum><text>whether the
project can lead to reductions in production
costs.</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="H60CB04D42177495A8EFB0181D2DC9C71"><enum>(B)</enum><text>in paragraph
(2)—</text>
<clause id="HDF9A422E5876473B99CF6C3C3276A64E"><enum>(i)</enum><text>by
striking <quote>subsection (c)(2)</quote> each place it appears and inserting
<quote>subsection (b)</quote>; and</text>
</clause><clause id="HF1B81565457C4959A38988A5E11B3814"><enum>(ii)</enum><text>in
subparagraph (C), by striking <quote>subsection (h)</quote> and inserting
<quote>subsection (e)</quote>; and</text>
</clause></subparagraph></paragraph><paragraph id="HD169EA04B1F845C593DF3AC90AB7B011"><enum>(5)</enum><text>in subsection (e)
(as so redesignated)—</text>
<subparagraph id="H9F3F1276054841CA82E9EA24132252C1"><enum>(A)</enum><text>in paragraph (1),
by striking subparagraphs (A) and (B) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H186C7BB6FFC643AC99F34E6023AC3C5C" style="OLC">
<subparagraph id="H432260A8207A42228D554DCE10B17EE9"><enum>(A)</enum><text>$100,000,000 for
fiscal year 2013; and</text>
</subparagraph><subparagraph id="H5CAFFD79A81E4C4DAF7E30C86C2B5EE4"><enum>(B)</enum><text>$80,000,000 for
each of fiscal years 2014 and 2015.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H1EC836DB057E479E830D58949AEA00B4"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>2012</quote> and inserting <quote>2017</quote>.</text>
</subparagraph></paragraph></section><section id="H8F7F2503AF43449D973B966EC58F51E7"><enum>4004.</enum><header>Rural Energy
for America Program</header><text display-inline="no-display-inline">Section
9007 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107) is
amended—</text>
<paragraph id="H8ADCF241EACB4E11903341D81D6292ED"><enum>(1)</enum><text>in subsection
(b)—</text>
<subparagraph id="HB4C3604DAF39451EBD3EAE013B2CF668"><enum>(A)</enum><text>in paragraph (1),
in the matter preceding subparagraph (A), by inserting <quote>, rural school
districts, eligible rural communities,</quote> before <quote>and rural small
businesses</quote>; and</text>
</subparagraph><subparagraph id="HEFBE19BAF130424BAB7DA3DD76E3AB5C"><enum>(B)</enum><text>in paragraph (4),
in the matter preceding subparagraph (A), by inserting <quote>, rural school
districts, eligible rural communities,</quote> before <quote>and rural small
businesses</quote>;</text>
</subparagraph></paragraph><paragraph id="H8D3BAD8679FE4D00A2104D211CF37551"><enum>(2)</enum><text>in subsection
(c)—</text>
<subparagraph id="H28949C35C8DA4D788576243CB75D5BC5"><enum>(A)</enum><text>in paragraph (1),
in the matter preceding subparagraph (A), by inserting <quote>, rural school
districts, eligible rural communities,</quote> before <quote>and rural small
businesses</quote>;</text>
</subparagraph><subparagraph id="H88D68885F42146A38140920A47C61767"><enum>(B)</enum><text>by redesignating
paragraphs (2) through (4) as paragraphs (3) through (5), respectively;</text>
</subparagraph><subparagraph id="H43CC3795C00A46AEBE218182B6269123"><enum>(C)</enum><text>by inserting after
paragraph (1) the following:</text>
<quoted-block display-inline="no-display-inline" id="H5419FD10E516435F8782C17E0B7E3468" style="OLC">
<paragraph id="H6CE1DBC0CC6142F0BFCCA4404CEAE92D"><enum>(2)</enum><header>Award
prioritization</header><text>In determining the amount of a loan guarantee or
grant provided under this section, the Secretary may give priority—</text>
<subparagraph id="H3B29D7E6A0E94487BB6EBE0F541F912F"><enum>(A)</enum><text>to loan guarantees
rather than grants or combined grant and loan guarantees, so as to maximize
leverage of private financing; and</text>
</subparagraph><subparagraph id="H6AE5DBFD3DFF4E0CA3EEF8D871ED68B0"><enum>(B)</enum><text>in the case of
energy efficiency projects, to loans under section 9014 or similar financing
mechanisms if locally available (as determined by the
Secretary).</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H3D53A469283D425A8830FD7F57694B1C"><enum>(D)</enum><text>in paragraph (3)
(as redesignated by subparagraph (A))—</text>
<clause id="H39CF92DBA71A4667AEC65FAC304FDBE9"><enum>(i)</enum><text>by
striking subparagraph (A) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HDCF371000555468B88DA1B93244D454C" style="OLC">
<subparagraph id="H9FB03F053B634F8581601FB8F4F8A62A"><enum>(A)</enum><text>the ability of a
project to demonstrate the economic viability for similar potential energy
investment projects in the
locality;</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause><clause id="H4CDF575A425F4F8DB60F023E9849E8FC"><enum>(ii)</enum><text>in
subparagraph (F), by striking <quote>and</quote> at the end;</text>
</clause><clause id="HE455A6AF40824C7FB2172D3220ADCF75"><enum>(iii)</enum><text>by
redesignating subparagraph (G) as subparagraph (H); and</text>
</clause><clause id="H593BF77C08C343AD87A39A353BDD9700"><enum>(iv)</enum><text>by
inserting after subparagraph (F) the following:</text>
<quoted-block display-inline="no-display-inline" id="H46A36DC8ACB64948B8A36E2D7579FBEF" style="OLC">
<subparagraph id="H030FB3C2B211483A92CC478EDF2B647E"><enum>(G)</enum><text>the type of
renewable energy system to be purchased;
and</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="H610E3EE834B242BB95FC6234D3013F66"><enum>(E)</enum><text>in paragraph (5)
(as so redesignated)—</text>
<clause id="H88051DB0660B4167AE4BB4E628620DAA"><enum>(i)</enum><text>in
subparagraph (A)—</text>
<subclause id="H02A31AEC0FD34F55BFB9BAB8D1FB8AFA"><enum>(I)</enum><text>by striking
<quote>(A) <header-in-text level="subparagraph" style="OLC">Grants</header-in-text>.—The amount</quote> and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="HF617EBE2E42A4641B679B43689D34EB1" style="OLC">
<subparagraph id="H1F70D6AFC60347E0B9E5666C01A28475"><enum>(A)</enum><header>Grants</header>
<clause id="H32D5056F901E4E66B7997E782F1884CE"><enum>(i)</enum><header>In
general</header><text>The amount</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subclause><subclause id="H2A60FAF6AAAC4F8CA52FC84785DABD97"><enum>(II)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H7497D2CEBB6B4C3593828C24F7238677" style="OLC">
<clause id="HF39914EE094149449B30D00F28CF5297"><enum>(ii)</enum><header>Limitation</header>
<subclause id="H77FF4C3BC6E540E4AC330DD824740C37"><enum>(I)</enum><header>In
general</header><text>Subject to subclause (II), not more than 15 percent of
the total amount of funds made available under subsection (f) that is allocated
by the Secretary for grants under this subsection may be used for grants in
excess of $250,000.</text>
</subclause><subclause id="H217EFCE15BC642C1AACF77AC3E5ADA41"><enum>(II)</enum><header>Limitation</header><text>No
grant under this subsection may exceed
$500,000.</text>
</subclause></clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subclause></clause><clause id="H940666DE33454BFC8034D96757CCA7A8"><enum>(ii)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HF31546A7D48A4439A7B462F33BD8A76F" style="OLC">
<subparagraph id="HFA46FCE37EB84DB3A54A2B337150D4DB"><enum>(D)</enum><header>Maximum amount
of loan guarantee relative to cost of activity funded</header><text>The amount
of a loan guaranteed under this subsection shall not exceed 90 percent of the
cost of the activity funded under this
subsection.</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph></paragraph><paragraph id="H23BE4A108F134A54B4609B1C68F105F1"><enum>(3)</enum><text>in subsection
(e)—</text>
<subparagraph id="H3A73943C3A41495595C0621069E5A587"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>subsection (g)</quote> and inserting <quote>subsection (f)
and allocated by the Secretary for grants</quote>; and</text>
</subparagraph><subparagraph id="HDBB410AC3B644206A7ACE85B5FF977BD"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>subsection (g)</quote> and inserting <quote>subsection
(f)</quote>;</text>
</subparagraph></paragraph><paragraph id="H0F6D64660804442E95E5FC39EE3DE005"><enum>(4)</enum><text>by striking
subsection (f);</text>
</paragraph><paragraph id="H50C7F5A0040A4802BFEA222EC8DAD6DD"><enum>(5)</enum><text>by redesignating
subsection (g) as subsection (f); and</text>
</paragraph><paragraph id="HF5923B1701204A7D87E7DC3F0D0B06B1"><enum>(6)</enum><text>in subsection (f)
(as so redesignated)—</text>
<subparagraph id="HCF36678C612140F68A16A4A98386FE78"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>, to remain available until expended—</quote> and all that
follows through the end of subparagraph (D) and inserting <quote>$70,000,000
for each of fiscal years 2013 through 2017, to remain available until
expended.</quote>;</text>
</subparagraph><subparagraph id="H52D3AFE2FC584392AA912002C86281E3"><enum>(B)</enum><text>by redesignating
paragraph (3) as paragraph (4);</text>
</subparagraph><subparagraph id="H4759FDE0FA53438C83763290063E413A"><enum>(C)</enum><text>by inserting after
paragraph (2) the following:</text>
<quoted-block display-inline="no-display-inline" id="H1C38BA647CAE426CBC29678A05BEB667" style="OLC">
<paragraph id="HF2FECB867DD54687A6DD8844E1BC7BBF"><enum>(3)</enum><header>Limitation</header><text>Of
the funds made available for a fiscal year under paragraph (1), not more than
10 percent may be made available for grants or loan guarantees to rural school
districts or eligible rural
communities.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H9481433114AC49CE96A729EF65B932ED"><enum>(D)</enum><text>in paragraph (4)
(as redesignated by subparagraph (B), by striking <quote>there is
authorized</quote> and all that follows through the end and inserting
<quote>there is authorized to be appropriated to carry out this section
$80,000,000 for each of fiscal years 2013 through 2017.</quote>.</text>
</subparagraph></paragraph></section><section id="H796D01241B9D4F9BB85936CCFC1B0FC9"><enum>4005.</enum><header>Repeal of
feedstock flexibility program for bioenergy producers</header><text display-inline="no-display-inline">Section 9010 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8110) is repealed.</text>
</section><section id="H8E53BEDDC31349AC963CC4BC73C48950"><enum>4006.</enum><header>Biomass Crop
Assistance Program</header><text display-inline="no-display-inline">Section
9011 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8111) is
amended—</text>
<paragraph id="H5B039FABEB1A4819BEAC0111DBB2D67C"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="H05CE594FA9D24210A65C9F242AF97BCB"><enum>(A)</enum><text>by redesignating
paragraphs (4) through (8) as paragraphs (5) through (9), respectively;</text>
</subparagraph><subparagraph id="HC86B15046E434011877A183B2A205AA6"><enum>(B)</enum><text>by inserting after
paragraph (3) the following:</text>
<quoted-block display-inline="no-display-inline" id="H5C1EEE09D9534430A777D94AB778EF8C" style="OLC">
<paragraph id="HA1EECAACFAEA4948AD699BBE366D7043"><enum>(4)</enum><header>Delivery</header><text>The
term <term>delivery</term> means the point of delivery of an eligible material
or an eligible crop, as determined by the
Secretary.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HC38790D21FEE4D6D97EC7466A62A1FF3"><enum>(C)</enum><text>in subparagraph
(B) of paragraph (5) (as so redesignated)—</text>
<clause id="H7915D42A943D444F9CD8C3B20D2A31CE"><enum>(i)</enum><text>in
clause (i), by striking <quote>that is eligible</quote> and inserting
<quote>that, as of the day before the date of enactment of the
<short-title>Rural Economic Farm and Ranch Sustainability
and Hunger Act of 2011</short-title>, was eligible</quote>; and</text>
</clause><clause id="H5734C221C80C4E01AAFD97B9E030B535"><enum>(ii)</enum><text>in
clause (ii), by striking <quote>or has the potential to become invasive or
noxious</quote>;</text>
</clause></subparagraph><subparagraph id="H60A55AF183834202B2D400185657D75C"><enum>(D)</enum><text>in subparagraph
(B) of paragraph (6) (as so redesignated)—</text>
<clause id="HDA6D8E6974B3446BA4A5F1D6D5E85E15"><enum>(i)</enum><text>in
clause (i), by adding <quote>or</quote> after the semicolon at the end;</text>
</clause><clause id="HC2DB8666182644AAA099F79A07C302AC"><enum>(ii)</enum><text>in
clause (ii), by striking the semicolon at the end and inserting a period;
and</text>
</clause><clause id="HB9ABEC481E644CAAA72390A8F8655FEA"><enum>(iii)</enum><text>by
striking clauses (iii) through (v); and</text>
</clause></subparagraph><subparagraph id="H78A3C8C095B945169B8CBB1D8DDBA92F"><enum>(E)</enum><text>in paragraph (7)
(as so redesignated)—</text>
<clause id="H55819DA16E35453B8A5A3FB95E827A89"><enum>(i)</enum><text>by
redesignating subparagraph (B) as subparagraph (C);</text>
</clause><clause id="H3A964F0604604B4EB019519D678A522C"><enum>(ii)</enum><text>by
inserting after subparagraph (A) the following:</text>
<quoted-block display-inline="no-display-inline" id="HBE77C9D521E7480D8404FACF7329EC95" style="OLC">
<subparagraph id="H0556D350E1FA4D93BB0158DD068844CB"><enum>(B)</enum><header>Additional
requirement for eligible material from non-Federal forest land</header><text>In
the case of non-Federal forest land and forest land belonging to an Indian or
Indian tribe that is in trust by the United States or subject to a restriction
against alienation imposed by the United States, the Secretary shall ensure
that the definition of the term <term>eligible material</term>—</text>
<clause id="H6F678A856A8B437D95C2476427E54232"><enum>(i)</enum><text>ensures that the
renewable biomass defined as <term>eligible material</term>—</text>
<subclause id="H320A6898A0C242AB88FED22C8A21B501"><enum>(I)</enum><text>is not diverted
from use in markets as of the date of enactment of the
<short-title>Rural Economic Farm and Ranch Sustainability
and Hunger Act of 2011</short-title>;</text>
</subclause><subclause id="HB49911C3BB2546DDAEB9F4472C28FECC"><enum>(II)</enum><text>has been
determined to be otherwise uneconomically retrievable; and</text>
</subclause><subclause id="HEA8FC213FB9A4BE5A3513D8D08205002"><enum>(III)</enum><text>is harvested in
accordance with an approved conservation, forest stewardship, or equivalent
plan; and</text>
</subclause></clause><clause id="HC0E6376A85454EDE98C0ACC30E7707E6"><enum>(ii)</enum><text>includes a
requirement that the renewable biomass is harvested directly from the land for
delivery to a biomass conversion
facility.</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="H5D36F03552CA4B09B567F70043E4BF63"><enum>(iii)</enum><text>in
subparagraph (C) (as redesignated by clause (i))—</text>
<subclause id="HDF190687DC42418A83F29E1879F9F188"><enum>(I)</enum><text>in clause
(i)—</text>
<item id="HB532FAD847EB49948B8D02CA69620B17"><enum>(aa)</enum><text>by
striking <quote>that is eligible</quote> and inserting <quote>that, as of the
day before the date of enactment of the <short-title>Rural
Economic Farm and Ranch Sustainability and Hunger Act of 2011</short-title>,
was eligible</quote>; and</text>
</item><item id="HAF77C05787A042EFB3324E7810B59350"><enum>(bb)</enum><text>by
inserting before the semicolon at the end <quote>, except that residues from
such crops are eligible if harvested from the land in accordance with an
approved conservation or equivalent plan</quote>; and</text>
</item></subclause><subclause id="HA2E0D6AF5906488EA466F5BA2D85FD30"><enum>(II)</enum><text>in clause (iii),
by striking <quote>and yard waste</quote> and inserting <quote>, yard waste,
municipal solid waste, and sewage</quote>;</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H8F38A04B9068451F9BB3C38E9B09A121"><enum>(2)</enum><text>in subsection
(b)(2), by inserting <quote>collected directly from the land</quote> after
<quote>eligible material</quote>;</text>
</paragraph><paragraph id="H732D3DE1175248F882F3F79673BA7F95"><enum>(3)</enum><text>in subsection
(c)(5)—</text>
<subparagraph id="HD959DD1EDDD540B8A77A25044DE350FB"><enum>(A)</enum><text>in subparagraph
(B)—</text>
<clause id="H5AA97DE167554411AB33D75EB94BC8BF"><enum>(i)</enum><text>by
redesignating clauses (i) through (iii) as items (aa) through (cc),
respectively, and indenting appropriately;</text>
</clause><clause id="H4B00FA4D798F4B19BD13F811EAA7EA1B"><enum>(ii)</enum><text>by
striking <quote>shall be up to 75</quote> and inserting “shall be—</text>
<quoted-block display-inline="no-display-inline" id="HE216B05151E14CD2AB9F0ED8AD6253DE" style="OLC">
<clause id="HE34432FC2608476687F813DB883DBD63"><enum>(i)</enum><text>up
to 50</text>
</clause><after-quoted-block>; </after-quoted-block></quoted-block>
</clause><clause id="HFA36812CC14A467588A30D4148F3E957"><enum>(iii)</enum><text>in
item (cc) (as designated by clause (i)), by striking the period at the end and
inserting <quote>; and</quote>; and</text>
</clause><clause id="H1020CD2AC1144A0EA7F57E98A0159E00"><enum>(iv)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HE99E05CB42B84C0F9953FECA0480C289" style="OLC">
<clause id="HB00BE71D051E401988487175B1002246"><enum>(ii)</enum><text>if the Secretary
determines that a greater amount of support is necessary to demonstrate more
capital intensive cropping opportunities or in the case of 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))), up to 65
percent of the costs of establishing an eligible perennial crop covered by the
contract (as determined under clause (i)); and</text>
</clause><clause id="HEDF7FB9995334444A3D08C4B8ABDC4CF"><enum>(iii)</enum><text>determined by
the Secretary in a manner that seeks to minimize Federal costs, recognizing
that the Secretary is not obligated to provide maximum cost-share allowances
under this
section.</text>
</clause><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="H0BFB45EAB10045E5B19F28AA34C6FDE6"><enum>(B)</enum><text>in subparagraph
(C)(ii), in the clause heading, by inserting <quote><header-in-text level="clause" style="OLC">in annual payments under
contract</header-in-text></quote> after <quote><header-in-text level="clause" style="OLC">Reduction</header-in-text></quote>; and</text>
</subparagraph><subparagraph id="H6D56E63150D84433951609896E55438F"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H7876016C0C944997A807C0B33BB6033C" style="OLC">
<subparagraph id="H582C17EA35B549C38D7A5B7E803C9346"><enum>(D)</enum><header>Requirements</header><text>Subject
to subparagraphs (B) and (C), the Secretary shall award payments under this
subsection on a competitive basis, taking into consideration the needs—</text>
<clause id="HA9C453A6040645B5BFAD0B1125236242"><enum>(i)</enum><text>to
demonstrate the economic viability of diverse bioenergy crops; and</text>
</clause><clause id="H26E366AF9F1741D7891D650B8ED7CB7F"><enum>(ii)</enum><text>to encourage cost
competition in establishment of eligible
crops.</text>
</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H208AA9A6FF1B43FBA63AB1180FC1B6BF"><enum>(4)</enum><text>in subsection
(d)—</text>
<subparagraph id="H23A371E1F4B148C9BD839E1B38CA2B7D"><enum>(A)</enum><text>in paragraph (1),
in the matter preceding subparagraph (A), by inserting <quote>collected
directly from the land</quote> after <quote>eligible material</quote>;
and</text>
</subparagraph><subparagraph id="HB922C01BD6D84C8B90FD92007676287A"><enum>(B)</enum><text>in paragraph (2),
by striking subparagraph (B) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H881F6D540DF040B4B4EA8325AE792CA3" style="OLC">
<subparagraph id="HC5EFD79494554DC982AE30B4E7324439"><enum>(B)</enum><header>Amount</header>
<clause id="HCD0B73614E5342F3B8EA746098CB78E1"><enum>(i)</enum><header>In
general</header><text>The amount of a matching payment under this subsection
shall be determined by the Secretary.</text>
</clause><clause id="H6260E4A89765481CB36FF9E8420AF92C"><enum>(ii)</enum><header>Requirements</header><text>Subject
to subparagraph (C), the Secretary shall award payments on a competitive basis,
taking into consideration the need—</text>
<subclause id="HE202445225484A18BF64AB0ADEEB926C"><enum>(I)</enum><text>to demonstrate the
economic viability of diverse eligible crops and eligible materials that
otherwise would be uneconomically retrievable for high priority uses (such as
advanced biofuels and biobased products); and</text>
</subclause><subclause id="H64703D71141C48669FAC9619119FE303"><enum>(II)</enum><text>to encourage cost
competition in the collection, harvest, storage, and transportation of eligible
crops to a biomass conversion facility.</text>
</subclause></clause></subparagraph><subparagraph commented="no" id="H40771F90FB834C50977DA622B13FD68A"><enum>(C)</enum><header>Maximum
payment</header><text>Subject to paragraph (3), the Secretary may provide
matching payments at a maximum rate of $0.50 for each $1 per dry ton provided
by the biomass conversion facility, in an amount equal to not more than $35 per
ton for a period of 2 years.</text>
</subparagraph><subparagraph commented="no" id="H1AF29F21612D49C1AFDCC5260CEC0AE9"><enum>(D)</enum><header>Minimization of
costs</header><text>In determining payment levels under this section, the
Secretary shall—</text>
<clause commented="no" id="H29176B8D2E1145A58DC2DBA9ED89CFEF"><enum>(i)</enum><text>seek to minimize
costs; and</text>
</clause><clause commented="no" id="H9A03941C4646416AB7C0070B279BFD81"><enum>(ii)</enum><text>not be required
to provide the maximum rate of payment allowed under this section.</text>
</clause></subparagraph><subparagraph id="HF72118F8CB6D4027A61A14E114F0AB8F"><enum>(E)</enum><header>Prohibition</header><text>Payments
may not be made under this section for eligible materials collected or
harvested that, after delivery to a biomass conversion facility, the campus of
the facility, or affiliated facilities, as determined by the Secretary, are
required to be separated from eligible materials used for a higher-value
product in order to be used for heat, power, biobased products, or advanced
biofuels.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="H6BA9E9904A7240BAB77711F82D1782C8"><enum>(5)</enum><text>by striking
subsections (e) and (f) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HF1FBC1926E374EC1A71CB2F496E648FD" style="OLC">
<subsection id="H605EB88E045449E0BB46B18067065DD6"><enum>(e)</enum><header>Funding</header>
<paragraph id="H9F345BAFF4004F45B372B3B5EE2A5EF7"><enum>(1)</enum><header>Mandatory
funding</header>
<subparagraph id="H8264E5717E664020B741CD1CB79573D6"><enum>(A)</enum><header>In
general</header><text>Of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this section $55,000,000 for each of the
fiscal years 2013 through 2017, to remain available until expended.</text>
</subparagraph><subparagraph id="HAEAA74DE255D4A0FBEA5F22C90C59314"><enum>(B)</enum><header>BCAP project
area</header><text>Of the funds made available for each fiscal year under
subparagraph (A), not less than 50 percent shall be made available to carry out
subsection (c).</text>
</subparagraph></paragraph><paragraph id="H50A1D451843B4C27A950641C9F097333"><enum>(2)</enum><header>Discretionary
funding</header><text>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 2013 through 2017.</text>
</paragraph><paragraph id="HC0B8359F00E1458B84FF069D95DE8BCD"><enum>(3)</enum><header>Technical
assistance</header><text>Notwithstanding paragraph (1)(B), the Secretary may
use funds made available for each fiscal year under this subsection to provide
technical
assistance.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HB2BCCBAB2F8C4A2BADFFCD69B336ECAF"><enum>4007.</enum><header>Rural energy
savings program</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="HAB2005CB307D4921AAAC359A45233CFF" style="OLC">
<section id="H1C70784345374080A20324DF941F8D15"><enum>9014.</enum><header>Rural energy
savings program</header>
<subsection id="HDD0A4547A76C4239A056C6CBEC98AD41"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="HA176AF6A90554B7DAB4925E6716AB889"><enum>(1)</enum><header>Eligible
entity</header><text>The term <term>eligible entity</term> means—</text>
<subparagraph id="H074D9CE4F3BF437D991A50C25CFD71C8"><enum>(A)</enum><text>any public power
district, public utility district, or similar entity, or any electric
cooperative described in section 501(c)(12) or 1381(a)(2) of the Internal
Revenue Code of 1986, that borrowed and repaid, prepaid, or is paying an
electric loan made or guaranteed by the Rural Utilities Service (or any
predecessor agency);</text>
</subparagraph><subparagraph id="HE7065F7A411A4E43A9999B1AD9FC58C8"><enum>(B)</enum><text>any entity
primarily owned or controlled by 1 or more entities described in subparagraph
(A); or</text>
</subparagraph><subparagraph id="HAE363560F4354CB78ACA80A59B000A1F"><enum>(C)</enum><text>any other entity
that is an eligible borrower of the Rural Utility Service (as determined under
section 1710.101 of title 7, Code of Federal Regulations (or a successor
regulation)).</text>
</subparagraph></paragraph><paragraph id="HE4BCA40FB1294E9E8A35EEC957F54C0D"><enum>(2)</enum><header>Energy
efficiency measures</header><text>The term <term>energy efficiency
measures</term> means, for or at property served by an eligible entity,
structural improvements and investments in cost-effective, commercial
technologies to increase energy efficiency.</text>
</paragraph><paragraph id="HD2DA0697A5794511B34130F5DBB4CD0E"><enum>(3)</enum><header>Qualified
consumer</header><text>The term <term>qualified consumer</term> means a
consumer served by an eligible entity that has the ability to repay a loan made
under subsection (c), as determined by the eligible entity.</text>
</paragraph><paragraph id="H48CD60E15B9B41B4813047AFE322FA5D"><enum>(4)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Agriculture, acting through
the Administrator of the Rural Utilities Service.</text>
</paragraph></subsection><subsection id="H644E5310025C4348BB7E8FE4FE8A047D"><enum>(b)</enum><header>Loans to
Eligible Entities</header>
<paragraph id="H09CEFAAEA8574F679AA6622DBED4BCB0"><enum>(1)</enum><header>In
general</header><text>Subject to paragraph (2), the Secretary shall make loans
to eligible entities that agree to use the loan funds to make loans to
qualified consumers for the purpose of implementing energy efficiency
measures.</text>
</paragraph><paragraph id="HB910A716BB854981AE018AC5CCA5544A"><enum>(2)</enum><header>Requirements</header>
<subparagraph id="H01103C718A324D8FA52BB5F169F9922A"><enum>(A)</enum><header>In
general</header><text>As a condition of receiving a loan under this subsection,
an eligible entity shall—</text>
<clause id="HF9A1C55AE0E348E4A7462C275D7F1C22"><enum>(i)</enum><text>establish a list
of energy efficiency measures that is expected to decrease energy use or costs
of qualified consumers;</text>
</clause><clause id="HB05EEE92076B463E9B5DECB2B6968A76"><enum>(ii)</enum><text>prepare an
implementation plan for use of the loan funds, including for interest rate
utilization under subsection (c)(1)(A);</text>
</clause><clause id="HE52188B151C6413880F5C1E3F5DE4220"><enum>(iii)</enum><text>provide for
appropriate measurement and verification to ensure—</text>
<subclause id="HFFF6EA49511C4CC290DB71F90457CC89"><enum>(I)</enum><text>the effectiveness
of the energy efficiency loans made by the eligible entity; and</text>
</subclause><subclause id="H1193F31E98DE4DF6A7DC5B3FB4998758"><enum>(II)</enum><text>that there is no
conflict of interest in carrying out this section; and</text>
</subclause></clause><clause id="H0649A713A44C4CD9A6072417C86E6E8C"><enum>(iv)</enum><text>demonstrate
expertise in effective use of energy efficiency measures at scale.</text>
</clause></subparagraph><subparagraph id="H3849E497F57745BBB83D51A2DA9536FC"><enum>(B)</enum><header>Revision of list
of energy efficiency measures</header><text>Subject to the approval of the
Secretary, an eligible entity may update the list required under subparagraph
(A)(i) to account for newly available efficiency technologies.</text>
</subparagraph><subparagraph id="H3F6704A55B1343179EC1C986B3F87A30"><enum>(C)</enum><header>Existing energy
efficiency programs</header><text>An eligible entity that, at any time before
the date that is 60 days after the date of enactment of this section, has
established an energy efficiency program for qualified consumers may use an
existing list of energy efficiency measures, implementation plan, or
measurement and verification system of that program to satisfy the requirements
of subparagraph (A) if the Secretary determines the list, plan, or systems are
consistent with the purposes of this section.</text>
</subparagraph></paragraph><paragraph id="HD56A5CAE99CF4EF2BCA0779E159099D4"><enum>(3)</enum><header>No
interest</header><text>A loan under this subsection shall bear no
interest.</text>
</paragraph><paragraph id="HC289631B8A6241FD96E434D097B95EA9"><enum>(4)</enum><header>Repayment</header><text>With
respect to a loan under paragraph (1)—</text>
<subparagraph id="H034909713E564605A567F886C2B17EC6"><enum>(A)</enum><text>the term shall not
exceed 20 years from the date on which the loan is closed; and</text>
</subparagraph><subparagraph id="HBBA8486EC9E5442F84FD7D8A06043264"><enum>(B)</enum><text>except as provided
in paragraph (6), the repayment of each advance shall be amortized for a period
not to exceed 10 years.</text>
</subparagraph></paragraph><paragraph id="H5503761B08BF4391B278D0A46BEC2472"><enum>(5)</enum><header>Amount of
advances</header><text>Any advance of loan funds to an eligible entity in any
single year shall not exceed 50 percent of the approved loan amount.</text>
</paragraph><paragraph id="H4595E0DA240249E59D676C676715E5C4"><enum>(6)</enum><header>Special advance
for start-up activities</header>
<subparagraph id="H2369B324AB1342C494ECA0D56898D58A"><enum>(A)</enum><header>In
general</header><text>In order to assist an eligible entity in defraying the
appropriate start-up costs (as determined by the Secretary) of establishing new
programs or modifying existing programs to carry out subsection (c), the
Secretary shall allow an eligible entity to request a special advance.</text>
</subparagraph><subparagraph id="H2716F26E0DAC4D11A0CA618E756FADF3"><enum>(B)</enum><header>Amount</header><text>No
eligible entity may receive a special advance under this paragraph for an
amount that is greater than 4 percent of the loan amount received by the
eligible entity under paragraph (1).</text>
</subparagraph><subparagraph id="HC076778BDB0542AB9A0693F553419BD2"><enum>(C)</enum><header>Repayment</header><text>Repayment
of the special advance—</text>
<clause id="HF3FA58690BC34F789BE39B6DE5300407"><enum>(i)</enum><text>shall be required
during the 10-year period beginning on the date on which the special advance is
made; and</text>
</clause><clause id="HC57B7029F7C448D7B21FF9CC545252A8"><enum>(ii)</enum><text>at the election
of the eligible entity, may be deferred to the end of the 10-year
period.</text>
</clause></subparagraph></paragraph><paragraph id="H62B92EC5365043E2B67644C60309DC99"><enum>(7)</enum><header>Limitation</header><text>All
special advances shall be made under a loan described in paragraph (1) during
the first 10 years of the term of the loan.</text>
</paragraph></subsection><subsection id="HD4ED1191510B44239E9FB142785E6CB4"><enum>(c)</enum><header>Loans to
qualified consumers</header>
<paragraph id="HE663DDE97BE042A08486B25472B68875"><enum>(1)</enum><header>Terms of
loans</header><text>Loans made by an eligible entity to qualified consumers
using loan funds provided by the Secretary under subsection (b)—</text>
<subparagraph id="H8E6172E5EBD046C48A0299062E585003"><enum>(A)</enum><text>may bear interest,
not to exceed 3 percent, to be used for purposes that include—</text>
<clause id="HF6E46EFB20AB4B5787001C35A974CF9D"><enum>(i)</enum><text>to
establish a loan loss reserve; and</text>
</clause><clause id="H2ED1FFA0923B4733969CB0B3709BBC9C"><enum>(ii)</enum><text>to offset
additional personnel and program costs of eligible entities to provide the
loans;</text>
</clause></subparagraph><subparagraph id="H44711C727C014FFE842E54C86B081EE7"><enum>(B)</enum><text>shall finance
energy efficiency measures for the purpose of decreasing energy usage or costs
of the qualified consumer by an amount that ensures, to the maximum extent
practicable, that a loan term of not more than 10 years will not pose an undue
financial burden on the qualified consumer, as determined by the eligible
entity;</text>
</subparagraph><subparagraph id="HE4C7F84F815A417B9CF3013D46294F8C"><enum>(C)</enum><text>shall not be used
to fund purchases of, or modifications to, personal property, unless the
personal property is or becomes attached to real property (including a
manufactured home) as a fixture;</text>
</subparagraph><subparagraph id="HFB54FE31131D4ACBB7026A0E0DD2F680"><enum>(D)</enum><text>shall be repaid
through charges added to the electric bill for the property for, or at which,
energy efficiency measures are or will be implemented, on the condition that
this requirement does not prohibit—</text>
<clause id="H4C106A59D5934954AE213F6ED09DC119"><enum>(i)</enum><text>the voluntary
prepayment of a loan by the owner of the property; or</text>
</clause><clause id="H374D821C056E4DAE9EBA9C7D9839CAD7"><enum>(ii)</enum><text>the use of any
additional repayment mechanisms that are—</text>
<subclause id="H4C07D68730BE4A46BFC160837BAA3F83"><enum>(I)</enum><text>demonstrated to
have appropriate risk mitigation features, as determined by the eligible
entity; or</text>
</subclause><subclause id="H45EDC2D47EE0417BA9405D2DDF663EE5"><enum>(II)</enum><text>required if the
qualified consumer is no longer a customer of the eligible entity; and</text>
</subclause></clause></subparagraph><subparagraph id="H6FF2A3EAD60A408995BF62F9ED336089"><enum>(E)</enum><text>shall require an
energy audit by an eligible entity to determine the impact of proposed energy
efficiency measures on the energy costs and consumption of the qualified
consumer.</text>
</subparagraph></paragraph><paragraph id="H5EB759B13EAC4716AD4E2FFAE37EEACA"><enum>(2)</enum><header>Contractors</header><text>In
addition to any other qualified general contractor, eligible entities may serve
as general contractors.</text>
</paragraph></subsection><subsection id="HD4C612F1DD774045854753F9E5721544"><enum>(d)</enum><header>Contract for
measurement and verification, training, and technical assistance</header>
<paragraph id="H41DE85240F5B4738A100F4D504FDBD21"><enum>(1)</enum><header>In
general</header><text>Not later than 90 days after the date of enactment of
this section, the Secretary—</text>
<subparagraph id="H30F6DDA8E95144368FC7BF5A89B483DA"><enum>(A)</enum><text>shall establish a
plan for measurement and verification, training, and technical assistance of
the program; and</text>
</subparagraph><subparagraph id="H94A03E10F1764C7F9F02AEF95F62631D"><enum>(B)</enum><text>may enter into 1
or more contracts with a qualified entity for the purposes of—</text>
<clause id="H84DE798A54B340FFB308A22256C7B0FF"><enum>(i)</enum><text>providing
measurement and verification activities; and</text>
</clause><clause id="HD4DD7A6B5E5B41EB833EAAF9DA224D74"><enum>(ii)</enum><text>developing a
program to provide technical assistance and training to the employees of
eligible entities to carry out this section.</text>
</clause></subparagraph></paragraph><paragraph id="HEFBD91E7D7544DC59780D63C1610EDC3"><enum>(2)</enum><header>Use of
subcontractors authorized</header><text>A qualified entity that enters into a
contract under paragraph (1) may use subcontractors to assist the qualified
entity in carrying out the contract.</text>
</paragraph></subsection><subsection id="H9B08C85BDEF046E1828ED054810A1545"><enum>(e)</enum><header>Fast Start
demonstration projects</header>
<paragraph id="H4FBD5D57078B48359BF060B540299946"><enum>(1)</enum><header>In
general</header><text>The Secretary shall offer to enter into agreements with
eligible entities (or groups of eligible entities) that have energy efficiency
programs described in subsection (b)(2)(C) to establish an energy efficiency
loan demonstration projects consistent with the purposes of this
section.</text>
</paragraph><paragraph id="H8AB6481D8C994359B71E9F5A9627D143"><enum>(2)</enum><header>Evaluation
criteria</header><text>In determining which eligible entities to award loans
under this section, the Secretary shall take into consideration eligible
entities that—</text>
<subparagraph id="H23B0996EA12C45C884ADDA244F7295A4"><enum>(A)</enum><text>implement
approaches to energy audits and investments in energy efficiency measures that
yield measurable and predictable savings;</text>
</subparagraph><subparagraph id="H0E55F2D903A64C0EA6B8BF6EF5968432"><enum>(B)</enum><text>use measurement
and verification processes to determine the effectiveness of energy efficiency
loans made by eligible entities;</text>
</subparagraph><subparagraph id="H0232C2FB24D348778C1021D5DE68926A"><enum>(C)</enum><text>include training
for employees of eligible entities, including any contractors of such entities,
to implement or oversee the activities described in subparagraphs (A) and
(B);</text>
</subparagraph><subparagraph id="H0EB0FE0AC40B48EB852F7D18867802AD"><enum>(D)</enum><text>provide for the
participation of a majority of eligible entities in a State;</text>
</subparagraph><subparagraph id="HAA8BB56A5B424492A1A6477C7F147697"><enum>(E)</enum><text>reduce the need
for generating capacity;</text>
</subparagraph><subparagraph id="H30BCF232E47B4B7FBA148BBD5F53C537"><enum>(F)</enum><text>provide efficiency
loans to—</text>
<clause id="HBA289AFFACBA401888B071EEFF125B06"><enum>(i)</enum><text>in
the case of a single eligible entity, not fewer than 20,000 consumers;
or</text>
</clause><clause id="H0E32261BDEC04DB48087417EE4C8EC5E"><enum>(ii)</enum><text>in the case of a
group of eligible entities, not fewer than 80,000 consumers; and</text>
</clause></subparagraph><subparagraph id="H20ACFCCA8BC34D3CB9933EDBE402D28C"><enum>(G)</enum><text>serve areas in
which, as determined by the Secretary, a large percentage of consumers
reside—</text>
<clause id="H0EC5C48C6D2344F990E32EFBE0FC8262"><enum>(i)</enum><text>in
manufactured homes; or</text>
</clause><clause id="H185D05BDFBBB4601822BE42E2481F860"><enum>(ii)</enum><text>in housing units
that are more than 50 years old.</text>
</clause></subparagraph></paragraph><paragraph id="H9B6BCF0E9EA7460C9D6453F7E6C137A0"><enum>(3)</enum><header>Deadline for
implementation</header><text>To the maximum extent practicable, the Secretary
shall enter into agreements described in paragraph (1) by not later than 90
days after the date of enactment of this section.</text>
</paragraph><paragraph id="H8F2A774D65F849D9B25821E5D9D11E52"><enum>(4)</enum><header>Effect on
availability of loans nationally</header><text>Nothing in this subsection shall
delay the availability of loans to eligible entities on a national basis
beginning not later than 180 days after the date of enactment of this
section.</text>
</paragraph><paragraph id="HA4EBF0E803404BBEB0DEB4F4E22BBE50"><enum>(5)</enum><header>Additional
demonstration project authority</header>
<subparagraph id="H48E968624679455A95BFEB7FEB6CA0B5"><enum>(A)</enum><header>In
general</header><text>The Secretary may conduct demonstration projects in
addition to the project required by paragraph (1).</text>
</subparagraph><subparagraph id="HE77C21088115489FA2BE221FBBE3E80A"><enum>(B)</enum><header>Inapplicability
of certain criteria</header><text>The additional demonstration projects may be
carried out without regard to subparagraphs (D), (F), or (G) of paragraph
(2).</text>
</subparagraph></paragraph></subsection><subsection id="HD475621BAF4F4BFC80BD1E792829A022"><enum>(f)</enum><header>Additional
authority</header><text>The authority provided in this section is in addition
to any other authority of the Secretary to offer loans under any other
law.</text>
</subsection><subsection id="HDD12B6F13CCA4CCDAFB93A04474D32E2"><enum>(g)</enum><header>Funding</header>
<paragraph id="H74E22F15FC54441D9CED2B56687415BC"><enum>(1)</enum><header>Mandatory
funding</header><text>Of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this section $70,000,000 for each of fiscal
years 2013 through 2017.</text>
</paragraph><paragraph id="H60D9F97637C6499E9380CD47BCC9C447"><enum>(2)</enum><header>Discretionary
funding</header><text>In addition to any other funds made available to carry
out this section, there is authorized to be appropriated to the Secretary to
carry out this section $80,000,000 for each of fiscal years 2013 through 2017,
to remain available until expended.</text>
</paragraph></subsection><subsection id="H02FFF2B9B3C644EE9A6FD2F1F7AFE477"><enum>(h)</enum><header>Effective
Period</header><text>Subject to the availability of funds under subsection (g)
and except as otherwise provided in this section, the loans and other
expenditures required to be made under this section shall be available until
expended, with the Secretary authorized to make new loans as loans are
repaid.</text>
</subsection><subsection id="H7F1C89B1C8B04C6E909FA5B9E8FD82CC"><enum>(i)</enum><header>Regulations</header>
<paragraph id="HDB30B1B39B1D47A3AFC820AC8D89A894"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided in this subsection, not
later than 180 days after the date of enactment of this section, the Secretary
shall promulgate such regulations as are necessary to implement this
section.</text>
</paragraph><paragraph id="H8E35FE2EAE504C0789CCEA57E0B4D218"><enum>(2)</enum><header>Procedure</header><text>The
promulgation of the regulations and administration of this section shall be
made without regard to—</text>
<subparagraph id="H835DA2C8176A49CE9856B263BD54F79E"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="H84A7CB4B29B94439862A91C0B6F9DCFB"><enum>(B)</enum><text>chapter 35 of
title 44, United States Code (commonly known as the <quote>Paperwork Reduction
Act</quote>).</text>
</subparagraph></paragraph><paragraph id="H7C3090E2C3B84622965BDA941878D625"><enum>(3)</enum><header>Congressional
review of agency rulemaking</header><text>In carrying out this section, the
Secretary shall use the authority provided under section 808 of title 5, United
States Code.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H91A781C1A3734226B4919349E8B7501C"><enum>(4)</enum><header>Interim
regulations</header><text>Notwithstanding paragraphs (1) and (2), to the extent
regulations are necessary to carry out any provision of this section, the
Secretary shall implement such regulations through the promulgation of an
interim
rule.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>V</enum><header>Technical
improvements to research</header>
<section commented="no" id="H9AC655EF38C2449382759B865429DCB8"><enum>5001.</enum><header>Matching fund
requirement under McIntire-Stennis Cooperative Forestry Act</header>
<subsection id="H7D2F90D5D6CD4E85BEDE0700FA860597"><enum>(a)</enum><header>1890
Waivers</header><text>Section 4 of Public Law 87–788 (commonly known as the
<quote>McIntire-Stennis Cooperative Forestry Act</quote>) (16 U.S.C. 582a–3) is
amended—</text>
<paragraph id="H9A14955ABB3F4FBC87CD2AD12498A199"><enum>(1)</enum><text>by designating the
first sentence and the second through fifth sentences as subsection (a) and
subsections (c) through (f), respectively; and</text>
</paragraph><paragraph id="HA2DAE0832C474EAFA738EC33F17C1174"><enum>(2)</enum><text>by inserting after
subsection (a) (as so designated) the following:</text>
<quoted-block display-inline="no-display-inline" id="H689D97D2406C4F36B8D34BDD7086F26E" style="OLC">
<subsection id="HC5EA5D5DB8534AF1AA55AD5D9D5C1A0C"><enum>(b)</enum><header>1890
Institutions</header><text>The matching funds requirement of this section shall
not be applicable to 1890 Institutions (as defined in section 2 of the
Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C.
7601)) if the allocation is below $200,000 for a fiscal
year.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H3489416CE28E45529F3B8438ADE6E50D"><enum>(b)</enum><header>Participation</header><text>Section
8 of Public Law 87–788 (commonly known as the <quote>McIntire-Stennis
Cooperative Forestry Act</quote>) (16 U.S.C. 582a–7) is amended by inserting
<quote>the Federated States of Micronesia, American Samoa, the Commonwealth of
the Northern Mariana Islands,</quote> after <quote>the Virgin
Islands,</quote>.</text>
</subsection></section><section id="H805181C0B44440E3A7B40602D44A1701"><enum>5002.</enum><header>Matching fund
requirement under Hatch Act of 1887</header><text display-inline="no-display-inline">Section 3(d) of the Hatch Act of 1887 (7
U.S.C. 361c(d)) is amended—</text>
<paragraph id="HBF19B3B264A443D998DC9DC94CAF8378"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by inserting before the
period at the following: <quote>, except that a State may obtain $2 from
private sources for each $1 the State is required to match under this
Act</quote>; and</text>
</paragraph><paragraph id="H4903FB9EF4E049ACBF67B8FAFDD2F280"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (4)(A), by inserting before
the period at the following: <quote>, except that an insular area or the
District of Columbia may obtain $2 from private sources for each $1 the insular
area or the District of Columbia, respectively, is required to match under this
Act</quote>.</text>
</paragraph></section><section id="H5CCEDB110E3C45A18F9F7DBA18D79AAE"><enum>5003.</enum><header>Matching fund
requirement under Smith-Lever Act</header><text display-inline="no-display-inline">Section 3(e) of the Smith-Lever Act (7
U.S.C. 343(e)) is amended—</text>
<paragraph id="H3998B8E4F4584442832598E80420BDA6"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by inserting before the
period at the following: <quote>, except that a State may obtain $2 from
private sources for each $1 the State is required to match under this
Act</quote>; and</text>
</paragraph><paragraph id="HCA0FEF465DFB4859A3234F79B577F17A"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (4)(A), by inserting before
the period at the following: <quote>, except that an insular area or the
District of Columbia may obtain $2 from private sources for each $1 the insular
area or the District of Columbia, respectively, is required to match under this
Act</quote>.</text>
</paragraph></section><section id="HF564876EC5C448B680D952C8C4D59D57"><enum>5004.</enum><header>Biomass
Research and Development Initiative</header>
<subsection id="H8F3A4254C32B4F64903A86FDCFCBBFEB"><enum>(a)</enum><header>Movement of
Initiative</header><text display-inline="yes-display-inline">Section 9008 of
the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8108) is—</text>
<paragraph id="HD6F1F41CCD094E598E085E4B434DE25D"><enum>(1)</enum><text>redesignated as
section 1473H of the National Agricultural Research, Extension, and Teaching
Policy Act of 1977; and</text>
</paragraph><paragraph id="H5D0B5774F7774ED585A8F10D2503A03C"><enum>(2)</enum><text>moved so as to
appear at the end of subtitle K of that Act (7 U.S.C. 3310 et seq.).</text>
</paragraph></subsection><subsection id="H56D7C823ED5C4F88B5992CDC6B9E7AEC"><enum>(b)</enum><header>Reauthorization
and improvement of Initiative</header><text display-inline="yes-display-inline">Section 1473H of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (as redesignated and moved
by subsection (a)) is amended—</text>
<paragraph id="HD3CDF53659024786AB8498A0B9DCE323"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="H99F2A7F9684F4BD397CD0EFA54C3F375"><enum>(A)</enum><text>by redesignating
paragraphs (1), (2), and (3) as paragraphs (2), (6), and (7),
respectively;</text>
</subparagraph><subparagraph id="HB3A39EA51D854F248690280B3E86EAA7"><enum>(B)</enum><text>by inserting
before paragraph (2) (as so redesignated) the following:</text>
<quoted-block display-inline="no-display-inline" id="HF2AE16AFD1D348519954F483667A544B" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H7C43093A7C284D7DBDCD19EEFA5BF8CD"><enum>(1)</enum><header display-inline="yes-display-inline">Advisory Committee</header><text display-inline="yes-display-inline">The term <term>Advisory Committee</term>
means the Biomass Research and Development Technical Advisory Committee
established by subsection (d)(1).</text>
</paragraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HD9DBD47BD30C45489839AE2FCDFA29A0"><enum>(C)</enum><text>by inserting after
paragraph (2) (as so redesignated) the following:</text>
<quoted-block display-inline="no-display-inline" id="HA8AB20AAE5484FCDB49933DF7ECE256F" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HC80AC182B05E480B8A2B8E65BF7BF9CD"><enum>(3)</enum><header display-inline="yes-display-inline">Biofuel</header><text display-inline="yes-display-inline">The term <term>biofuel</term> means a fuel
derived from renewable biomass.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H887BDFD6238A4E6698785EFB4D11A27F"><enum>(4)</enum><header display-inline="yes-display-inline">Biorefinery</header><text display-inline="yes-display-inline">The term <term>biorefinery</term> means a
facility (including equipment and processes) that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3EEC3BFCEBCC437A8A42474DB344186C"><enum>(A)</enum><text>converts renewable
biomass into biofuels and biobased products; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCF23DD03D6384F0F98B3F1BBFF294400"><enum>(B)</enum><text>may produce
electricity.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5E96CDAE7B9B44DDA3828ED70EAF46A7"><enum>(5)</enum><header display-inline="yes-display-inline">Board</header><text display-inline="yes-display-inline">The term <term>Board</term> means the
Biomass Research and Development Board established by subsection
(c).</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HD5BD190FD7F14D59806F609261ED1C1F"><enum>(D)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H78F5029541C94AE1A894F27C9C979682" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H1A9390D27BFB4F72ACE4E2D537517EFA"><enum>(8)</enum><header display-inline="yes-display-inline">Institution of higher
education</header><text display-inline="yes-display-inline">The term
<term>institution of higher education</term> has the meaning given the term in
section 102(a) of the Higher Education Act of 1965 (20 U.S.C. 1002(a)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H83CD99176F244577B624EDD3C5BB589A"><enum>(9)</enum><header>Renewable
biomass</header><text display-inline="yes-display-inline">The term
<term>renewable biomass</term> has the meaning given the term in section 9001
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
8101).</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H6D430253849B4238A3A86B6EAE68D4E3"><enum>(2)</enum><text>in subsection
(e)—</text>
<subparagraph id="H7FDCFD422D454F5F92ACC75FBCD28D6A"><enum>(A)</enum><text>in paragraph
(3)—</text>
<clause id="H0B523CE94F374DC696BADBE490709BB1"><enum>(i)</enum><text>in
the matter preceding subparagraph (A), by striking <quote>the Administrator of
the Environmental Protection Agency and</quote>; and</text>
</clause><clause id="HB2CE82905DAC4FFBB6F7BA82DD8F8241"><enum>(ii)</enum><text>by
subparagraph (B)(i), by striking <quote>cellulosic</quote>; and</text>
</clause></subparagraph><subparagraph id="H16BAB0734DB54487B4BFEF4712879850"><enum>(B)</enum><text>in paragraph
(4)(C), by striking <quote>cellulosic</quote>;</text>
</subparagraph></paragraph><paragraph id="H3D06F90E04BB478086752D6EDF1F7994"><enum>(3)</enum><text>in subsection (g),
in the matter preceding paragraph (1), by striking <quote>For each fiscal year
for which funds are made available to carry out this section</quote> and
inserting <quote>Every 2 years</quote>; and</text>
</paragraph><paragraph id="H2C1B73D04F1D4477B0B31080173C5340"><enum>(4)</enum><text>in subsection
(h)—</text>
<subparagraph id="HA9DC23EADC6C4A9E970A04D3E57DF66C"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>expended—</quote> and all that follows through the period at
the end and inserting <quote>expended, $60,000,000 for each of fiscal years
2013 through 2017.</quote>; and</text>
</subparagraph><subparagraph id="H732184A523E948F8ABB7B7FA89B9EABD"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>$35,000,000 for each of fiscal years 2009 through
2012</quote> and inserting <quote>$115,000,000 for each of fiscal years 2013
through 2017</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H024CD23320BB4A8B9AEF54DEAE62809E"><enum>(c)</enum><header>Conforming
amendments</header><text>Section 9001 of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 8101) is amended—</text>
<paragraph id="HC859614501EB4E16B1890CE50743C050"><enum>(1)</enum><text>by striking
paragraphs (2) and (8);</text>
</paragraph><paragraph id="H47C8CF4BDEA44F4494465D0278DE4D8D"><enum>(2)</enum><text>by redesignating
paragraphs (3) through (7) as paragraphs (2) through (6), respectively;
and</text>
</paragraph><paragraph id="H8C90EC5E8D5E42AF9F409ADF04E4ED28"><enum>(3)</enum><text>by redesignating
paragraphs (9) through (14) as paragraphs (7) through (12),
respectively.</text>
</paragraph></subsection></section>