[Congressional Record Volume 147, Number 171 (Tuesday, December 11, 2001)]
[Senate]
[Pages S12870-S12984]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2467. Mr. HUTCHINSON (for himself and Mrs. Lincoln) submitted an 
amendment intended to be proposed by him to the bill S. 1731, to 
strengthen the safety net for agricultural producers, to enhance 
resource conservation and rural development, to provide for farm 
credit, agricultural research, nutrition, and related programs, to 
ensure consumes abundant food and fiber, and for other purposes; which 
was ordered to lie on the table; as follows:

       Strike the period at the end of subtitle C of title X and 
     insert the following:

     SEC. 10__. ANIMAL AND PLANT HEALTH INSPECTION SERVICE.

       (a) Definitions.--In this section:
       (1) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture, acting through the Administrator of the 
     Service.
       (2) Service.--The term ``Service'' means the Animal and 
     Plant Health Inspection Service of the Department of 
     Agriculture.
       (b) Exemption.--Notwithstanding any other provision of law, 
     any migratory bird management carried out by the Secretary 
     shall be exempt from the National Environmental Policy Act of 
     1969 (42 U.S.C. 4321 et seq.) (including regulations).
       (c) Permits; Management.--An agent, officer, or employee of 
     the Service that carries out any activity relating to 
     migratory bird management may, under the Migratory Bird 
     Treaty Act (16 U.S.C. 703 et seq.)--
       (1) issue a depredation permit to a stakeholder or 
     cooperator of the Service; and
       (2) manage and take migratory birds.
                                  ____

  SA 2468. Mr. HUTCHINSON submitted an amendment intended to be 
proposed by him to the bill S. 1731, to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place insert the following:

[[Page S12871]]

     SEC.   . STUDY, EVALUATION AND REPORT ON THE CREATION OF A 
                   LITTER BANK BY THE DEPARTMENT OF AGRICULTURE AT 
                   THE UNIVERSITY OF ARKANSAS.

       The Secretary shall conduct a study to evaluate and report 
     back to Congress on the creation of a litter bank by the 
     Department of Agriculture at the University of Arkansas for 
     the purpose of enhancing health and viability of watersheds 
     in areas with large concentrations of animal producing units. 
     The Secretary shall evaluate the needs and means by which 
     litter may be collected and distributed to other watersheds 
     to reduce potential point source and non point source 
     phosphorous pollution. The report shall be submitted to 
     Congress no later than six months after the enactment of this 
     Act.
                                  ____

  SA 2469. Mr. HUTCHINSON submitted an amendment intended to be 
proposed by him to the bill S. 1731, to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place insert the following:

     SEC.   . OZARK FOOTHILLS RECREATION CONSERVATION & 
                   DEVELOPMENT COUNCIL FOR FOREST LANDOWNERS 
                   EDUCATION PROJECT IN BATESVILLE, ARKANSAS.

       (a) Availability of Funds.--Of the amount authorized by 
     this act, $200,000 is to be authorized for the Ozark 
     Foothills Recreation Conservation & Development Council for 
     the Forest Landowners Education Project in Batesville, 
     Arkansas.
                                  ____

  SA 2470. Mr. HUTCHINSON submitted an amendment intended to be 
proposed by him to the bill S. 1731, to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place, insert the following:

                 TITLE __--ANIMAL ENTERPRISE TERRORISM

     SEC. __01. ANIMAL ENTERPRISE TERRORISM.

       (a) In General.--Section 43(a) of title 18, United States 
     Code, is amended to read as follows:
       ``(a) Offense.--
       ``(1) In general.--Whoever--
       ``(A) travels in interstate or foreign commerce, or uses or 
     causes to be used the mail or any facility in interstate or 
     foreign commerce for the purpose of causing physical 
     disruption to the functioning of an animal enterprise; and
       ``(B) intentionally damages or causes the loss of any 
     property (including animals or records) used by the animal 
     enterprise, or conspires to do so,
     shall be punished as provided for in subsection (b).
       (b) Penalties.--Section 43(b) of title 18, United States 
     Code, is amended to read as follows:
       ``(b) Penalties.--
       ``(1) Economic damage.--Any person who, in the course of a 
     violation of subsection (a), causes economic damage not 
     exceeding $10,000 to an animal enterprise shall be fined 
     under this title or imprisoned not more than 6 months, or 
     both.
       ``(2) Major economic damage.--Any person who, in the course 
     of a violation of subsection (a), causes economic damage 
     exceeding $10,000 to an animal enterprise shall be fined 
     under this title or imprisoned not more than 3 years, or 
     both.
       ``(3) Serious bodily injury.--Any person who, in the course 
     of a violation of subsection (a), causes serious bodily 
     injury to another individual shall be fined under this title 
     or imprisoned not more than 20 years, or both.
       ``(4) Death.--Any person who, in the course of a violation 
     of subsection (a), causes the death of an individual shall be 
     fined under this title or imprisoned for life or for any term 
     of years, or both.''.
       (c) Restitution.--Section 43(c) of title 18, United States 
     Code, is amended--
       (1) in paragraph (1), by striking ``and'' at the end;
       (2) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(3) for any other economic damage resulting from the 
     offense.''.

     SEC. __02. NATIONAL ANIMAL TERRORISM INCIDENT CLEARINGHOUSE.

       (a) Definitions.--In this section:
       (1) Animal enterprise.--The term ``animal enterprise'' has 
     the same meaning as in section 43 of title 18, United States 
     Code.
       (2) Clearinghouse.--The term ``clearinghouse'' means the 
     clearinghouse established under subsection (b).
       (3) Director.--The term ``Director'' means the Director of 
     the Federal Bureau of Investigation.
       (b) National Clearinghouse.--The Director shall establish 
     and maintain a national clearinghouse for information on 
     incidents of violent crime and terrorism committed against or 
     directed at any animal enterprise.
       (c) Clearinghouse.--The clearinghouse shall--
       (1) accept, collect, and maintain information on incidents 
     described in subsection (b) that is submitted to the 
     clearinghouse by Federal, State, and local law enforcement 
     agencies, by law enforcement agencies of foreign countries, 
     and by victims of such incidents;
       (2) collate and index such information for purposes of 
     cross-referencing; and
       (3) upon request from a Federal, State, or local law 
     enforcement agency, or from a law enforcement agency of a 
     foreign country, provide such information to assist in the 
     investigation of an incident described in subsection (b).
       (d) Scope of Information.--The information maintained by 
     the clearinghouse for each incident shall, to the extent 
     practicable, include--
       (1) the date, time, and place of the incident;
       (2) details of the incident;
       (3) any available information on suspects or perpetrators 
     of the incident; and
       (4) any other relevant information.
       (e) Design of Clearinghouse.--The clearinghouse shall be 
     designed for maximum ease of use by participating law 
     enforcement agencies.
       (f) Publicity.--The Director shall publicize the existence 
     of the clearinghouse to law enforcement agencies by 
     appropriate means.
       (g) Resources.--In establishing and maintaining the 
     clearinghouse, the Director may--
       (1) through the Attorney General, utilize the resources of 
     any other department or agency of the Federal Government; and
       (2) accept assistance and information from private 
     organizations or individuals.
       (h) Coordination.--The Director shall carry out the 
     responsibilities of the Director under this section in 
     cooperation with the Director of the Bureau of Alcohol, 
     Tobacco, and Firearms.
                                  ____

  SA 2471. Mr. DASCHLE (for Mr. Harkin) proposed an amendment to the 
bill S. 1731, to strengthen the safety net for agricultural producers, 
to enhance resource conservation and rural development, to provide for 
farm credit, agricultural research, nutrition, and related programs, to 
ensure consumers abundant food and fiber, and for other purposes; as 
follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Agriculture, Conservation, and Rural Enhancement Act of 
     2001''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

                      TITLE I--COMMODITY PROGRAMS

Sec. 101. Definitions.

            Subtitle A--Direct and Counter-Cyclical Payments

Sec. 111. Direct and counter-cyclical payments.
Sec. 112. Violations of contracts.
Sec. 113. Planting flexibility.

Subtitle B--Nonrecourse Marketing Assistance Loans and Loan Deficiency 
                                Payments

Sec. 121. Nonrecourse marketing assistance loans and loan deficiency 
              payments.
Sec. 122. Eligible production.
Sec. 123. Loan rates.
Sec. 124. Term of loans.
Sec. 125. Repayment of loans.
Sec. 126. Loan deficiency payments.
Sec. 127. Special marketing loan provisions for upland cotton.

                     Subtitle C--Other Commodities

                            Chapter 1--Dairy

Sec. 131. Milk price support program.
Sec. 132. National dairy program.
Sec. 133. Dairy export incentive and dairy indemnity programs.
Sec. 134. Fluid milk promotion.
Sec. 135. Dairy product mandatory reporting.
Sec. 136. Funding of dairy promotion and research program.
Sec. 137. Dairy studies.

                            Chapter 2--Sugar

Sec. 141. Sugar program.
Sec. 142. Storage facility loans.
Sec. 143. Flexible marketing allotments for sugar.

                           Chapter 3--Peanuts

Sec. 151. Peanut program.
Sec. 152. Termination of marketing quotas for peanuts and compensation 
              to peanut quota holders.

                       Subtitle D--Administration

Sec. 161. Adjustment authority related to Uruguay Round compliance.
Sec. 162. Suspension of permanent price support authority.
Sec. 163. Commodity purchases.
Sec. 164. Hard white wheat incentive payments.
Sec. 165. Payment limitations.

                         TITLE II--CONSERVATION

                   Subtitle A--Conservation Security

Sec. 201. Conservation security program.
Sec. 202. Funding.
Sec. 203. Partnerships and cooperation.
Sec. 204. Administrative requirements for conservation programs.

[[Page S12872]]

Sec. 205. Reform and assessment of conservation programs.
Sec. 206. Conservation security program regulations.
Sec. 207. Conforming amendments.

                     Subtitle B--Program Extensions

Sec. 211. Comprehensive conservation enhancement program.
Sec. 212. Conservation reserve program.
Sec. 213. Environmental quality incentives program.
Sec. 214. Wetlands reserve program.
Sec. 215. Water conservation program.
Sec. 216. Resource conservation and development program.
Sec. 217. Wildlife habitat incentive program.
Sec. 218. Farmland protection program.
Sec. 219. Expansion of State marketing programs.
Sec. 220. Grassland reserve program.
Sec. 221. State technical committees.
Sec. 222. Use of symbols, slogans, and logos.

                      Subtitle C--Organic Farming

Sec. 231. Organic Agriculture Research Trust Fund.
Sec. 232. Establishment of National Organic Research Endowment 
              Institute.

                      Subtitle D--Regional Equity

Sec. 241. Allocation of conservation funds by State.

 Subtitle E--Advisory Council and Federal Interagency Working Group on 
                        Upper Mississippi River

Sec. 251. Definitions.
Sec. 252. Establishment of Advisory Council on the Upper Mississippi 
              River Stewardship Initiative.
Sec. 253. Federal Interagency Working Group.
Sec. 254. Authorization of appropriations.

                       Subtitle F--Miscellaneous

Sec. 261. Cranberry acreage reserve program.
Sec. 262. Klamath Basin.

                            TITLE III--TRADE

 Subtitle A--Agricultural Trade Development and Assistance Act of 1954 
                          and Related Statutes

Sec. 301. United States policy.
Sec. 302. Provision of agricultural commodities.
Sec. 303. Generation and use of currencies by private voluntary 
              organizations and cooperatives.
Sec. 304. Levels of assistance.
Sec. 305. Food Aid Consultative Group.
Sec. 306. Maximum level of expenditures.
Sec. 307. Administration.
Sec. 308. Assistance for stockpiling and rapid transportation, 
              delivery, and distribution of shelf-stable prepackaged 
              foods.
Sec. 309. Sale procedure.
Sec. 310. Prepositioning.
Sec. 311. Expiration date.
Sec. 312. Micronutrient fortification program.
Sec. 313. Farmer-to-farmer program.

               Subtitle B--Agricultural Trade Act of 1978

Sec. 321. Export credit guarantee program.
Sec. 322. Market access program.
Sec. 323. Export enhancement program.
Sec. 324. Foreign market development cooperator program.
Sec. 325. Food for progress and education programs.
Sec. 326. Exporter assistance initiative.

        Subtitle C--Miscellaneous Agricultural Trade Provisions

Sec. 331. Bill Emerson Humanitarian Trust.
Sec. 332. Emerging markets.
Sec. 333. Biotechnology and agricultural trade program.
Sec. 334. Surplus commodities for developing or friendly countries.
Sec. 335. Agricultural trade with Cuba.
Sec. 336. Sense of Congress concerning agricultural trade.

                      TITLE IV--NUTRITION PROGRAMS

Sec. 401. Short title.

                     Subtitle A--Food Stamp Program

Sec. 411. Encouragement of payment of child support.
Sec. 412. Simplified definition of income.
Sec. 413. Increase in benefits to households with children.
Sec. 414. Simplified determination of housing costs.
Sec. 415. Simplified utility allowance.
Sec. 416. Simplified procedure for determination of earned income.
Sec. 417. Simplified determination of deductions.
Sec. 418. Simplified definition of resources.
Sec. 419. Alternative issuance systems in disasters.
Sec. 420. State option to reduce reporting requirements.
Sec. 421. Benefits for adults without dependents.
Sec. 422. Preservation of access to electronic benefits.
Sec. 423. Cost neutrality for electronic benefit transfer systems.
Sec. 424. Alternative procedures for residents of certain group 
              facilities.
Sec. 425. Availability of food stamp program applications on the 
              Internet.
Sec. 426. Simplified determinations of continuing eligibility.
Sec. 427. Clearinghouse for successful nutrition education efforts.
Sec. 428. Transitional food stamps for families moving from welfare.
Sec. 429. Delivery to retailers of notices of adverse action.
Sec. 430. Reform of quality control system.
Sec. 431. Improvement of calculation of State performance measures.
Sec. 432. Bonuses for States that demonstrate high performance.
Sec. 433. Employment and training program.
Sec. 434. Reauthorization of food stamp program and food distribution 
              program on Indian reservations.
Sec. 435. Coordination of program information efforts.
Sec. 436. Expanded grant authority.
Sec. 437. Access and outreach pilot projects.
Sec. 438. Consolidated block grants and administrative funds.
Sec. 439. Assistance for community food projects.
Sec. 440. Availability of commodities for the emergency food assistance 
              program.
Sec. 441. Innovative programs for addressing common community problems.
Sec. 442. Report on use of electronic benefit transfer systems.
Sec. 443. Vitamin and mineral supplements.

                  Subtitle B--Miscellaneous Provisions

Sec. 451. Reauthorization of commodity programs.
Sec. 452. Partial restoration of benefits to legal immigrants.
Sec. 453. Commodities for school lunch programs.
Sec. 454. Eligibility for free and reduced price meals.
Sec. 455. Eligibility for assistance under the special supplemental 
              nutrition program for women, infants, and children.
Sec. 456. Seniors farmers' market nutrition program.
Sec. 457. Fruit and vegetable pilot program.
Sec. 458. Congressional Hunger Fellows Program.
Sec. 459. Nutrition information and awareness pilot program.
Sec. 460. Effective date.

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

Sec. 501. Direct loans.
Sec. 502. Financing of bridge loans.
Sec. 503. Limitations on amount of farm ownership loans.
Sec. 504. Joint financing arrangements.
Sec. 505. Guarantee percentage for beginning farmers and ranchers.
Sec. 506. Guarantee of loans made under State beginning farmer or 
              rancher programs.
Sec. 507. Down payment loan program.
Sec. 508. Beginning farmer and rancher contract land sales program.

                      Subtitle B--Operating Loans

Sec. 511. Direct loans.
Sec. 512. Amount of guarantee of loans for tribal farm operations; 
              waiver of limitations for tribal farm operations and 
              other farm operations.

                 Subtitle C--Administrative Provisions

Sec. 521. Eligibility of limited liability companies for farm ownership 
              loans, farm operating loans, and emergency loans.
Sec. 522. Debt settlement.
Sec. 523. Temporary authority to enter into contracts; private 
              collection agencies.
Sec. 524. Interest rate options for loans in servicing.
Sec. 525. Annual review of borrowers.
Sec. 526. Simplified loan applications.
Sec. 527. Inventory property.
Sec. 528. Definitions.
Sec. 529. Loan authorization levels.
Sec. 530. Interest rate reduction program.
Sec. 531. Options for satisfaction of obligation to pay recapture 
              amount for shared appreciation agreements.
Sec. 532. Waiver of borrower training certification requirement.
Sec. 533. Annual review of borrowers.

                        Subtitle D--Farm Credit

Sec. 541. Repeal of burdensome approval requirements.
Sec. 542. Banks for cooperatives.
Sec. 543. Insurance Corporation premiums.
Sec. 544. Board of Directors of the Federal Agricultural Mortgage 
              Corporation.

                     Subtitle E--General Provisions

Sec. 551. Inapplicability of finality rule.
Sec. 552. Technical amendments.
Sec. 553. Effective date.

                      TITLE VI--RURAL DEVELOPMENT

                Subtitle A--Empowerment of Rural America

Sec. 601. National Rural Cooperative and Business Equity Fund.
Sec. 602. Rural business investment program.
Sec. 603. Full funding of pending rural development loan and grant 
              applications.
Sec. 604. Rural Endowment Program.
Sec. 605. Enhancement of access to broadband service in rural areas.
Sec. 606. Value-added agricultural product market development grants.
Sec. 607. National Rural Development Information Clearinghouse.

           Subtitle B--National Rural Development Partnership

Sec. 611. Short title.
Sec. 612. National Rural Development Partnership.

        Subtitle C--Consolidated Farm and Rural Development Act

Sec. 621. Water or waste disposal grants.

[[Page S12873]]

Sec. 622. Rural business opportunity grants.
Sec. 623. Rural water and wastewater circuit rider program.
Sec. 624. Multijurisdictional regional planning organizations.
Sec. 625. Certified nonprofit organizations sharing expertise.
Sec. 626. Loan guarantees for certain rural development loans.
Sec. 627. Rural firefighters and emergency personnel grant program.
Sec. 628. Emergency community water assistance grant program.
Sec. 629. Water and waste facility grants for Native American tribes.
Sec. 630. Water systems for rural and native villages in Alaska.
Sec. 631. Rural cooperative development grants.
Sec. 632. Grants to broadcasting systems.
Sec. 633. Business and industry loan modifications.
Sec. 634. Value-added intermediary relending program.
Sec. 635. Use of rural development loans and grants for other purposes.
Sec. 636. Simplified application forms for loan guarantees.
Sec. 637. Definition of rural and rural area.
Sec. 638. Rural entrepreneurs and microenterprise assistance program.
Sec. 639. Rural seniors.
Sec. 640. Children's day care facilities.
Sec. 641. Rural telework.
Sec. 642. Historic barn preservation.
Sec. 643. Grants for emergency weather radio transmitters.
Sec. 644. Bioenergy and biochemical projects.
Sec. 645. Delta Regional Authority.
Sec. 646. SEARCH grants for small communities.
Sec. 647. Northern Great Plains Regional Authority.

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

Sec. 651. Alternative Agricultural Research and Commercialization 
              Corporation.
Sec. 652. Telemedicine and distance learning services in rural areas.

             Subtitle E--Rural Electrification Act of 1936

Sec. 661. Bioenergy and biochemical projects.
Sec. 662. Guarantees for bonds and notes issued for electrification or 
              telephone purposes.
Sec. 663. Expansion of 911 access.

TITLE VII--AGRICULTURAL RESEARCH, EDUCATION, AND EXTENSION AND RELATED 
                                MATTERS

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

Sec. 701. Definitions.
Sec. 702. National Agricultural Research, Extension, Education, and 
              Economics Advisory Board.
Sec. 703. Grants and fellowships for food and agricultural sciences 
              education.
Sec. 704. Competitive research facilities grant program.
Sec. 705. Grants for research on the production and marketing of 
              alcohols and industrial hydrocarbons from agricultural 
              commodities and forest products.
Sec. 706. Policy research centers.
Sec. 707. Human nutrition intervention and health promotion research 
              program.
Sec. 708. Pilot research program to combine medical and agricultural 
              research.
Sec. 709. Nutrition education program.
Sec. 710. Animal health and disease research programs.
Sec. 711. Research on national or regional problems.
Sec. 712. Education grants programs for Hispanic-serving institutions.
Sec. 713. Competitive grants for international agricultural science and 
              education programs.
Sec. 714. Indirect costs.
Sec. 715. Research equipment grants.
Sec. 716. Agricultural research programs.
Sec. 717. Extension education.
Sec. 718. Availability of competitive grant funds.
Sec. 719. Joint requests for proposals.
Sec. 720. Supplemental and alternative crops.
Sec. 721. Aquaculture.
Sec. 722. Rangeland research.
Sec. 723. Biosecurity planning and response programs.

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

Sec. 731. National genetic resources program.
Sec. 732. Biotechnology risk assessment research.
Sec. 733. High-priority research and extension initiatives.
Sec. 734. Nutrient management research and extension initiative.
Sec. 735. Organic agriculture research and extension initiative.
Sec. 736. Agricultural telecommunications program.
Sec. 737. Assistive technology program for farmers with disabilities.

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

Sec. 741. Initiative for Future Agriculture and Food Systems.
Sec. 742. Partnerships for high-value agricultural product quality 
              research.
Sec. 743. Precision agriculture.
Sec. 744. Biobased products.
Sec. 745. Thomas Jefferson Initiative for Crop Diversification.
Sec. 746. Integrated research, education, and extension competitive 
              grants program.
Sec. 747. Support for research regarding diseases of wheat and barley 
              caused by fusarium graminearum.
Sec. 748. Office of Pest Management Policy.
Sec. 749. Senior Scientific Research Service.

                     Subtitle D--Land-Grant Funding

                      Chapter 1--1862 Institutions

Sec. 751. Carryover.
Sec. 752. Reporting of technology transfer activities.
Sec. 753. Compliance with multistate and integration requirements.

                      Chapter 2--1994 Institutions

Sec. 754. Extension at 1994 institutions.
Sec. 755. Equity in Educational Land-Grant Status Act of 1994.
Sec. 756. Eligibility for integrated grants program.

                      Chapter 3--1890 Institutions

Sec. 757. Authorization percentages for research and extension formula 
              funds.
Sec. 758. Carryover.
Sec. 759. Reporting of technology transfer activities.
Sec. 760. Grants to upgrade agricultural and food sciences facilities 
              at 1890 land-grant colleges, including Tuskegee 
              University.
Sec. 761. National research and training centennial centers.
Sec. 762. Matching funds requirement for research and extension 
              activities.

                   Chapter 4--Land-grant Institutions


                         SUBCHAPTER A--GENERAL

Sec. 771. Priority-setting process.
Sec. 772. Termination of certain schedule A appointments.


         SUBCHAPTER B--LAND-GRANT INSTITUTIONS IN INSULAR AREAS

Sec. 775. Distance education grants program for insular area land-grant 
              institutions.
Sec. 776. Matching requirements for research and extension formula 
              funds for insular area land-grant institutions.

                         Subtitle E--Other Laws

Sec. 781. Critical agricultural materials.
Sec. 782. Research facilities.
Sec. 783. Federal agricultural research facilities.
Sec. 784. Competitive, special, and facilities research grants.
Sec. 785. Risk management education for beginning farmers and ranchers.
Sec. 786. Aquaculture.

                      Subtitle F--New Authorities

Sec. 791. Definitions.
Sec. 792. Regulatory and inspection research.
Sec. 793. Emergency research transfer authority.
Sec. 794. Review of Agricultural Research Service.
Sec. 795. Technology transfer for rural development.
Sec. 796. Beginning farmer and rancher development program.
Sec. 797. Sense of Congress regarding doubling of funding for 
              agricultural research.
Sec. 798. Rural policy research.
Sec. 798A. Priority for farmers and ranchers participating in 
              conservation programs.
Sec. 798B. Organic production and market data initiatives.
Sec. 798C. Organically produced product research and education.
Sec. 798D. International organic research collaboration.

                          TITLE VIII--FORESTRY

Sec. 801. Office of International Forestry.
Sec. 802. McIntire-Stennis cooperative forestry research program.
Sec. 803. Sustainable forestry outreach initiative; renewable resources 
              extension activities.
Sec. 804. Forestry incentives program.
Sec. 805. Sustainable forestry cooperative program.
Sec. 806. Sustainable forest management program.
Sec. 807. Forest fire research centers.
Sec. 808. Wildfire prevention and hazardous fuel purchase program.
Sec. 809. Enhanced community fire protection.
Sec. 810. Watershed forestry assistance program.
Sec. 811. General provisions.
Sec. 812. State forest stewardship coordinating committees.

                            TITLE IX--ENERGY

Sec. 901. Findings.
Sec. 902. Consolidated Farm and Rural Development Act.
Sec. 903. Biomass Research and Development Act of 2000.
Sec. 904. Rural Electrification Act of 1936.
Sec. 905. Carbon sequestration demonstration program.
Sec. 906. Sense of Congress concerning national renewable fuels 
              standard.
Sec. 907. Sense of Congress concerning the bioenergy program of the 
              Department of Agriculture.

                         TITLE X--MISCELLANEOUS

        Subtitle A--Country of Origin and Quality Grade Labeling

Sec. 1001. Country of origin labeling.

[[Page S12874]]

Sec. 1002. Quality grade labeling of imported meat and meat food 
              products.

                       Subtitle B--Crop Insurance

Sec. 1011. Continuous coverage.
Sec. 1012. Quality loss adjustment procedures.
Sec. 1013. Conservation requirements.

                     Subtitle C--General Provisions

Sec. 1021. Unlawful stockyard practices involving nonambulatory 
              livestock.
Sec. 1022. Cotton classification services.
Sec. 1023. Protection for purchasers of farm products.
Sec. 1024. Penalties and foreign commerce provisions of the Animal 
              Welfare Act.
Sec. 1025. Prohibition on interstate movement of animals for animal 
              fighting.
Sec. 1026. Outreach and assistance for socially disadvantaged farmers 
              and ranchers.
Sec. 1027. Public disclosure requirements for county committee 
              elections.
Sec. 1028. Pseudorabies eradication program.
Sec. 1029. Tree assistance program.
Sec. 1030. National organic certification cost-share program.
Sec. 1031. Food Safety Commission.
Sec. 1032. Humane methods of animal slaughter.
Sec. 1033. Penalties for violations of Plant Protection Act.
Sec. 1034. Connecticut River Atlantic Salmon Commission.

                       Subtitle D--Administration

Sec. 1041. Regulations.
Sec. 1042. Effect of amendments.

                      TITLE I--COMMODITY PROGRAMS

     SEC. 101. DEFINITIONS.

       Section 102 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7202) is amended to read as 
     follows:

     ``SEC. 102. DEFINITIONS.

       ``In this title:
       ``(1) Agricultural act of 1949.--Except in section 171, the 
     term `Agricultural Act of 1949' means the Agricultural Act of 
     1949 (7 U.S.C. 1421 et seq.), as in effect prior to the 
     suspensions under section 171(b)(1).
       ``(2) Considered planted.--The term `considered planted' 
     means any acreage on the farm that--
       ``(A) producers on a farm were prevented from planting to a 
     crop because of drought, flood, or other natural disaster, or 
     other condition beyond the control of the eligible owners and 
     producers on the farm, as determined by the Secretary; and
       ``(B) was not planted to another contract commodity (other 
     than a contract commodity produced under an established 
     practice of double cropping).
       ``(3) Contract.--The term `contract' means a contract 
     entered into under subtitle B.
       ``(4) Contract acreage.--The term `contract acreage' means 
     the contract acreage determined under section 111(f).
       ``(5) Contract commodity.--The term `contract commodity' 
     means wheat, corn, grain sorghum, barley, oats, upland 
     cotton, rice, and oilseeds.
       ``(6) Contract payment.--The term `contract payment' means 
     a payment made under subtitle B pursuant to a contract.
       ``(7) Department.--The term `Department' means the 
     Department of Agriculture.
       ``(8) Extra long staple cotton.--The term `extra long 
     staple cotton' means cotton that--
       ``(A) is produced from pure strain varieties of the 
     Barbadense species or any hybrid thereof, or other similar 
     types of extra long staple cotton, designated by the 
     Secretary, having characteristics needed for various end uses 
     for which United States upland cotton is not suitable and 
     grown in irrigated cotton-growing regions of the United 
     States designated by the Secretary or other areas designated 
     by the Secretary as suitable for the production of the 
     varieties or types; and
       ``(B) is ginned on a roller-type gin or, if authorized by 
     the Secretary, ginned on another type gin for experimental 
     purposes.
       ``(9) Loan commodity.--The term `loan commodity' means 
     wheat, corn, grain sorghum, barley, oats, upland cotton, 
     extra long staple cotton, rice, oilseeds, wool, mohair, 
     honey, dry peas, lentils, and chickpeas.
       ``(10) Oilseed.--The term `oilseed' means a crop of 
     soybeans, sunflower seed, rapeseed, canola, safflower, 
     flaxseed, mustard seed, and, if designated by the Secretary, 
     other oilseeds.
       ``(11) Payment yield.--The term `payment yield' means a 
     payment yield determined under section 111(g).
       ``(12) Producer.--
       ``(A) In general.--The term `producer' means an owner, 
     operator, landlord, tenant, or sharecropper that--
       ``(i) shares in the risk of producing a crop; and
       ``(ii) is entitled to share in the crop available for 
     marketing from the farm, or would have shared had the crop 
     been produced.
       ``(B) Hybrid seed.--In determining whether a grower of 
     hybrid seed is a producer, the Secretary shall not take into 
     consideration the existence of a hybrid seed contract.
       ``(13) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(14) State.--The term `State' means--
       ``(A) a State;
       ``(B) the District of Columbia;
       ``(C) the Commonwealth of Puerto Rico; and
       ``(D) any other territory or possession of the United 
     States.
       ``(15) United states.--The term `United States', when used 
     in a geographical sense, means all of the States.''.

            Subtitle A--Direct and Counter-Cyclical Payments

     SEC. 111. DIRECT AND COUNTER-CYCLICAL PAYMENTS.

       Sections 111 through 114 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7211 through 
     7214) are amended to read as follows:

     ``SEC. 111. AUTHORIZATION FOR CONTRACTS.

       ``(a) In General.--The Secretary shall offer to enter into 
     a contract with an eligible owner or producer described in 
     subsection (b) on a farm containing eligible cropland under 
     which the eligible owner or producer will receive direct 
     payments and counter-cyclical payments under sections 113 and 
     114, respectively.
       ``(b) Eligible Owners and Producers.--
       ``(1) In general.--Subject to paragraphs (2) and (3), an 
     owner or producer on a farm shall be eligible to enter into a 
     contract.
       ``(2) Tenants.--
       ``(A) Share-rent tenants.--A producer on eligible cropland 
     that is a tenant with a share-rent lease of the eligible 
     cropland, regardless of the length of the lease, shall be 
     eligible to enter into a contract, if the owner of the 
     eligible cropland enters into the same contract.
       ``(B) Cash-rent tenants.--
       ``(i) Contracts with long-term leases.--A producer on 
     eligible cropland that cash rents the eligible cropland under 
     a lease expiring on or after the termination of the contract 
     shall be eligible to enter into a contract.
       ``(ii) Contracts with short-term leases.--

       ``(I) In general.--A producer that cash rents the eligible 
     cropland under a lease expiring before the termination of the 
     contract shall be eligible to enter into a contract.
       ``(II) Owner's contract interest.--The owner of the 
     eligible cropland may also enter into the same contract.
       ``(III) Consent of owner.--If the producer elects to enroll 
     less than 100 percent of the eligible cropland in the 
     contract, the consent of the owner shall be required for a 
     valid contract.

       ``(3) Cash-rent owners.--
       ``(A) In general.--An owner of eligible cropland that cash 
     rents the eligible cropland under a lease term that expires 
     before the end of 2006 crop year shall be eligible to enter 
     into a contract if the tenant declines to enter into the 
     contract.
       ``(B) Contract payments.--In the case of an owner covered 
     by subparagraph (A), the Secretary shall not make contract 
     payments to the owner under the contract until the lease held 
     by the tenant terminates.
       ``(c) Compliance With Certain Requirements.--Under the 
     terms of a contract, the owner or producer shall agree, in 
     exchange for annual contract payments--
       ``(1) to comply with applicable highly erodible land 
     conservation requirements under subtitle B of title XII of 
     the Food Security Act of 1985 (16 U.S.C. 3811 et seq.);
       ``(2) to comply with applicable wetland conservation 
     requirements under subtitle C of title XII of that Act (16 
     U.S.C. 3821 et seq.);
       ``(3) to comply with the planting flexibility requirements 
     of section 118; and
       ``(4) to use a quantity of land on the farm equal to the 
     contract acreage, for an agricultural or conserving use or 
     related activity, and not for a nonagricultural commercial or 
     industrial use, as determined by the Secretary.
       ``(d) Protection of Interests of Certain Producers.--
       ``(1) Tenants and sharecroppers.--In carrying out this 
     subtitle, the Secretary shall provide adequate safeguards to 
     protect the interests of tenants and sharecroppers.
       ``(2) Sharing of payments.--The Secretary shall provide for 
     the sharing of contract payments among the eligible producers 
     on a farm on a fair and equitable basis.
       ``(e) Eligible Cropland.--
       ``(1) In general.--Land shall be considered to be cropland 
     eligible for coverage under a contract only if the land--
       ``(A) has with respect to a contract commodity--
       ``(i) contract acreage attributable to the land; and
       ``(ii) a payment yield; or
       ``(B) was subject to a conservation reserve contract under 
     section 1231 of the Food Security Act of 1985 (16 U.S.C. 
     3831) with a term that expired, or was voluntarily 
     terminated, on or after the date of enactment of this 
     paragraph.
       ``(2) Quantity of eligible cropland covered by contract.--
     An eligible owner or producer may enroll as contract acreage 
     under this subtitle all or a portion of the eligible cropland 
     on the farm.
       ``(3) Voluntary reduction in contract acreage.--An eligible 
     owner or producer that enters into a contract may 
     subsequently reduce the quantity of contract acreage covered 
     by the contract.
       ``(f) Contract Acreage.--
       ``(1) In general.--Subject to subsection (h), for the 
     purpose of making direct payments and counter-cyclical 
     payments to eligible owners and producers on a farm, the 
     Secretary shall provide the eligible owners and producers on 
     the farm with an opportunity to elect 1 of the following 
     methods as the method by which the contract acreages for the 
     2002 through 2006 crops of all contract commodities for a 
     farm are determined:

[[Page S12875]]

       ``(A) The 4-year average of acreage planted or considered 
     planted to a contract commodity for harvest, grazing, haying, 
     silage, or other similar purposes during each of the 1998 
     through 2001 crop years.
       ``(B) The total of--
       ``(i) the contract acreage (as defined in section 102 (as 
     in effect before the amendment made by section 101 of the 
     Agriculture, Conservation, and Rural Enhancement Act of 
     2001)) that would have been used by the Secretary to 
     calculate the payment for fiscal year 2002 under such section 
     102 for the contract commodity on the farm; and
       ``(ii) the 4-year average determined under subparagraph (A) 
     for each oilseed produced on the farm.
       ``(C) In the case of land described in section 112(a)(3), 
     land with eligible base, as determined by the Secretary.
       ``(2) Prevention of excess contract acreages.--
       ``(A) Required reduction.--If the total of the contract 
     acreages for a farm, together with the acreage described in 
     subparagraph (C), exceeds the actual cropland acreage of the 
     farm, the Secretary shall reduce the quantity of contract 
     acreages for 1 or more contract commodities for the farm or 
     peanut acres as necessary so that the total of the contract 
     acreages and acreage described in subparagraph (C) does not 
     exceed the actual cropland acreage of the farm.
       ``(B) Selection of acres.--The Secretary shall give the 
     eligible owners and producers on the farm the opportunity to 
     select the contract acreages or peanut acres against which 
     the reduction will be made.
       ``(C) Other acreage.--For purposes of subparagraph (A), the 
     Secretary shall include--
       ``(i) any peanut acres for the farm under chapter 3 of 
     subtitle D;
       ``(ii) any acreage on the farm enrolled in the conservation 
     reserve program or wetlands reserve program under chapter 1 
     of subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3830 et seq.); and
       ``(iii) any other acreage on the farm enrolled in a 
     voluntary Federal conservation program under which production 
     of any agricultural commodity is prohibited.
       ``(D) Double-cropped acreage.--In applying subparagraph 
     (A), the Secretary shall take into account additional acreage 
     as a result of an established double-cropping history on a 
     farm, as determined by the Secretary.
       ``(g) Payment Yields.--
       ``(1) In general.--Subject to paragraph (2) and subsection 
     (h), an eligible owner or producer that has entered into a 
     contract under this subtitle may make a 1-time election to 
     have the payment yield for a payment for each of the 2002 
     through 2006 crops of all contract commodities for a farm be 
     equal to--
       ``(A) an amount that is the greater of--
       ``(i) the average of the yield per harvested acre for the 
     crop of the contract commodity for the farm for the 1998 
     through 2001 crop years, excluding--

       ``(I) any crop year for which the producers on the farm did 
     not plant the contract commodity; and
       ``(II) at the option of the producers on the farm, 1 
     additional crop year; or

       ``(ii) the farm program payment yield described in 
     subparagraph (B); or
       ``(B) the farm program payment yield established for the 
     1995 crop of a contract commodity under section 505 of the 
     Agricultural Act of 1949 (7 U.S.C. 1465), as adjusted by the 
     Secretary to account for any additional yield payments made 
     with respect to that crop under section 505(b)(2) of that 
     Act.
       ``(2) Assigned yields.--In the case of a farm for which 
     yield records are unavailable for a contract commodity 
     (including land of a farm that is devoted to an oilseed under 
     a former conservation reserve contract described in section 
     112(a)(3)), the Secretary shall establish an appropriate 
     payment yield for the contract commodity on the farm taking 
     in consideration the payment yields applicable to the 
     contract commodity under paragraph (1) for similar farms in 
     the area, taking into consideration the yield election for 
     the farm under subsection (h).
       ``(h) Eligible Owner and Producer Election Options.--
       ``(1) In general.--In making elections under subsections 
     (f) and (g), eligible owners and producers on a farm shall 
     elect to have--
       ``(A)(i) contract acreage for the farm determined under 
     subsection (f)(1)(A); and
       ``(ii) payment yields determined under subsection 
     (g)(1)(A); or
       ``(B)(i) contract acreage for the farm determined under 
     subsection (f)(1)(B); and
       ``(ii) payment yields determined under--
       ``(I) in the case of contract commodities other than 
     oilseeds, subsection (g)(1)(B); and
       ``(II) in the case of oilseeds, subsection (g)(1)(A).
       ``(2) Single election; time for election.--
       ``(A) Single election.--The eligible owners and producers 
     on a farm shall have 1 opportunity to make the election 
     described in paragraph (1).
       ``(B) Time for election.--Subject to section 112(a)(3), not 
     later than 180 days after the date of enactment of this 
     subsection, the eligible owners and producers on a farm shall 
     notify the Secretary of the election made by the eligible 
     owners and producers on the farm under paragraph (1).
       ``(3) Effect of failure to make election.--If the producers 
     on a farm fail to make the election under paragraph (1), or 
     fail to timely notify the Secretary of the selected option as 
     required by paragraph (2), the eligible owners and producers 
     on the farm shall be deemed to have made the election 
     described in paragraph (1)(B) for the purpose of determining 
     the contract acreages for all contract commodities on the 
     farm.
       ``(4) Application of election to all contract 
     commodities.--The election made under paragraph (1) or deemed 
     to be made under paragraph (3) with respect to a farm shall 
     apply to all of the contract commodities produced on the 
     farm.

     ``SEC. 112. ELEMENTS OF CONTRACTS.

       ``(a) Time for Contracting.--
       ``(1) Commencement.--To the extent practicable, the 
     Secretary shall commence entering into contracts not later 
     than 45 days after the date of enactment of the Agriculture, 
     Conservation, and Rural Enhancement Act of 2001.
       ``(2) Deadline.--Except as provided in paragraph (3), the 
     Secretary may not enter into a contract after the date that 
     is 180 days after the date of enactment of that Act.
       ``(3) Conservation reserve land.--
       ``(A) In general.--At the beginning of each fiscal year, 
     the Secretary shall allow an eligible owner or producer on a 
     farm covered by a conservation reserve contract entered into 
     under section 1231 of the Food Security Act of 1985 (16 
     U.S.C. 3831) that terminated after the date specified in 
     paragraph (2) to enter into or expand a contract to cover the 
     eligible cropland of the farm that was subject to the former 
     conservation reserve contract.
       ``(B) Election.--For the fiscal year and crop year for 
     which a contract acreage adjustment under subparagraph (A) is 
     first made, the eligible owners and producers on the farm 
     shall elect to receive--
       ``(i) direct payments and counter-cyclical payments under 
     sections 113 and 114, respectively, with respect to the 
     acreage added to the farm under this paragraph; or
       ``(ii) a prorated payment under the conservation reserve 
     contract.
       ``(b) Duration of Contract.--
       ``(1) Beginning date.--The term of a contract shall begin 
     with--
       ``(A) the 2002 crop of a contract commodity; or
       ``(B) in the case of acreage that was subject to a 
     conservation reserve contract described in subsection (a)(3), 
     the date the contract was entered into or expanded to cover 
     the acreage.
       ``(2) Ending date.--Subject to sections 116 and 117, the 
     term of a contract shall extend through the 2006 crop, unless 
     earlier terminated by the eligible owners or producers on a 
     farm.

     ``SEC. 113. DIRECT PAYMENTS.

       ``(a) In General.--For each of the 2002 through 2006 fiscal 
     years, the Secretary shall make direct payments available to 
     eligible owners and producers on a farm that have entered 
     into a contract to receive payments under this section.
       ``(b) Payment Amount.--The amount of a direct payment to be 
     paid to the eligible owners and producers on a farm for a 
     contract commodity for a fiscal year under this section shall 
     be obtained by multiplying--
       ``(1) the payment rate for the contract commodity specified 
     in subsection (c);
       ``(2) the contract acreage attributable to the contract 
     commodity for the farm; and
       ``(3) the payment yield for the contract commodity for the 
     farm.
       ``(c) Payment Rate.--The payment rates used to make direct 
     payments with respect to contract commodities for a fiscal 
     year under this section are as follows:
       ``(1) Wheat.--In the case of wheat:
       ``(A) For each of fiscal years 2002 and 2003, $0.450 per 
     bushel.
       ``(B) For each of fiscal years 2004 and 2005, $0.225 per 
     bushel.
       ``(C) For fiscal year 2006, $0.113 per bushel.
       ``(2) Corn.--In the case of corn:
       ``(A) For each of fiscal years 2002 and 2003, $0.270 per 
     bushel.
       ``(B) For each of fiscal years 2004 and 2005, $0.135 per 
     bushel.
       ``(C) For fiscal year 2006, $0.068 per bushel.
       ``(3) Grain sorghum.--In the case of grain sorghum:
       ``(A) For the 2002 fiscal year, $0.310 per bushel.
       ``(B) For the 2003 fiscal year, $0.270 per bushel.
       ``(C) For each of fiscal years 2004 and 2005, $0.135 per 
     bushel.
       ``(D) For fiscal year 2006, $0.068 per bushel.
       ``(4) Barley.--In the case of barley:
       ``(A) For each of fiscal years 2002 and 2003, $0.200 per 
     bushel.
       ``(B) For each of fiscal years 2004 and 2005, $0.100 per 
     bushel.
       ``(C) For fiscal year 2006, $0.050 per bushel.
       ``(5) Oats.--In the case of oats:
       ``(A) For each of fiscal years 2002 and 2003, $0.050 per 
     bushel.
       ``(B) For each of fiscal years 2004 and 2005, $0.025 per 
     bushel.
       ``(C) For fiscal year 2006, $0.013 per bushel.
       ``(6) Upland cotton.--In the case of upland cotton:
       ``(A) For each of fiscal years 2002 and 2003, $0.130 per 
     pound.
       ``(B) For each of fiscal years 2004 and 2005, $0.065 per 
     pound.
       ``(C) For fiscal year 2006, $0.0325 per pound.
       ``(7) Rice.--In the case of rice:
       ``(A) For each of fiscal years 2002 and 2003, $2.450 per 
     hundredweight.
       ``(B) For each of fiscal years 2004 through 2006, $2.40 per 
     hundredweight.
       ``(8) Soybeans.--In the case of soybeans:
       ``(A) For each of fiscal years 2002 and 2003, $0.550 per 
     bushel.
       ``(B) For each of fiscal years 2004 and 2005, $0.275 per 
     bushel.

[[Page S12876]]

       ``(C) For fiscal year 2006, $0.138 per bushel.
       ``(9) Oilseeds (other than soybeans).--In the case of 
     oilseeds (other than soybeans):
       ``(A) For each of fiscal years 2002 and 2003, $0.010 per 
     pound.
       ``(B) For each of fiscal years 2004 and 2005, $0.005 per 
     pound.
       ``(C) For fiscal year 2006, $0.0025 per pound.
       ``(d) Time for Payments.--
       ``(1) Initial payment.--At the option of the eligible 
     owners and producers on a farm, the Secretary shall pay 50 
     percent of the direct payment for a crop of a contract 
     commodity for the eligible owners and producers on the farm 
     on or after December 1 of the fiscal year, as determined by 
     the Secretary.
       ``(2) Final payment.--The Secretary shall pay the final 
     amount of the direct payment that is payable to the eligible 
     owners and producers on a farm for a contract commodity under 
     subsection (a) (less the amount of any initial payment made 
     to the producers on the farm of the contract commodity under 
     paragraph (1)) not later than September 30 of the fiscal 
     year, as determined by the Secretary.

     ``SEC. 114. COUNTER-CYCLICAL PAYMENTS.

       ``(a) In General.--For each of the 2002 through 2006 crop 
     years, the Secretary shall make counter-cyclical payments to 
     eligible owners and producers on a farm of each contract 
     commodity that have entered into a contract to receive 
     payments under this section.
       ``(b) Payment Amount.--The amount of the payments made to 
     eligible owners and producers on a farm for a crop of a 
     contract commodity under this section shall equal the amount 
     obtained by multiplying--
       ``(1) the payment rate for the contract commodity specified 
     in subsection (c);
       ``(2) the contract acreage attributable to the contract 
     commodity for the farm; and
       ``(3) the payment yield for the contract commodity for the 
     farm.
       ``(c) Payment Rates.--
       ``(1) In general.--The payment rate for a crop of a 
     contract commodity under subsection (b)(1) shall equal the 
     difference between--
       ``(A) the income protection price for the contract 
     commodity established under paragraph (2); and
       ``(B) the total of--
       ``(i) the higher of--

       ``(I) the average price of the contract commodity during 
     the first 5 months of the marketing year of the contract 
     commodity, as determined by the Secretary; and
       ``(II) the loan rate for the crop of the contract commodity 
     under section 132; and

       ``(ii) the direct payment for the contract commodity under 
     section 113 for the fiscal year that precedes the date of a 
     payment under this section.
       ``(2) Income protection prices.--The income protection 
     prices for contract commodities under paragraph (1)(A) are as 
     follows:
       ``(A) Wheat, $3.45 per bushel.
       ``(B) Corn, $2.35 per bushel.
       ``(C) Grain sorghum, $2.35 per bushel.
       ``(D) Barley, $2.20 per bushel.
       ``(E) Oats, $1.55 per bushel.
       ``(F) Upland cotton, $0.680 per pound.
       ``(G) Rice, $9.30 per hundredweight.
       ``(H) Soybeans, $5.75 per bushel.
       ``(I) Oilseeds (other than soybeans), $0.105 per pound.
       ``(d) Time for Payment.--The Secretary shall make counter-
     cyclical payments for each of the 2002 through 2006 crop 
     years not later than 190 days after the beginning of 
     marketing year for the crop of the contract commodity.''.

     SEC. 112. VIOLATIONS OF CONTRACTS.

       Section 116 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7216) is amended--
       (1) in the first sentence of subsection (a)--
       (A) by striking ``subsection (b)'' and inserting 
     ``subsections (b) and (e)''; and
       (B) by striking ``section 111(a)'' and inserting ``this 
     subtitle'';
       (2) in subsection (b), by striking ``If'' and inserting 
     ``Except as provided in subsection (e), if''; and
       (3) by adding at the end the following:
       ``(e) Planting Flexibility.--In the case of a first 
     violation of section 118(b) by an eligible owner or producer 
     that has entered into a contract and that acted in good 
     faith, in lieu of terminating the contract under subsection 
     (a), the Secretary shall require a refund or reduce a future 
     contract payment under subsection (b) in an amount that does 
     not exceed twice the amount otherwise payable under the 
     contract on the number of acres involved in the violation.''.

     SEC. 113. PLANTING FLEXIBILITY.

       Section 118(b) of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7218(b)) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) Limitations.--The planting of the following 
     agricultural commodities shall be prohibited on contract 
     acreage:
       ``(A) Fruits.
       ``(B) Vegetables (other than lentils, mung beans, dry peas, 
     and chickpeas).
       ``(C) In the case of the 2003 and subsequent crops of an 
     agricultural commodity, wild rice.''; and
       (2) in paragraph (2)(C), by striking ``1991 through 1995'' 
     and inserting ``1996 through 2001''.

Subtitle B--Nonrecourse Marketing Assistance Loans and Loan Deficiency 
                                Payments

     SEC. 121. NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN 
                   DEFICIENCY PAYMENTS.

       (a) In General.--Sections 131(a) and 137 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7231(a), 7237) are amended by striking ``2002'' each place it 
     appears and inserting ``2006''.
       (b) Upland Cotton.--Sections 134(e)(1), 136, and 136A(a) of 
     the Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7234(e)(1), 7236, 7236a(a)) are amended by striking 
     ``2003'' each place it appears and inserting ``2007''.

     SEC. 122. ELIGIBLE PRODUCTION.

       Section 131 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7231) is amended by striking 
     subsection (b) and inserting the following:
       ``(b) Eligible Production.--The producers on a farm shall 
     be eligible for a marketing loan under subsection (a) for any 
     quantity of a loan commodity produced on the farm.''.

     SEC. 123. LOAN RATES.

       (a) In General.--Section 132 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7232) is amended 
     to read as follows:

     ``SEC. 132. LOAN RATES.

       ``(a) In General.--Subject to subsection (b), the loan rate 
     for a marketing assistance loan under section 131 for a loan 
     commodity shall be--
       ``(1) in the case of wheat, $3.00 per bushel;
       ``(2) in the case of corn, $2.08 per bushel;
       ``(3) in the case of grain sorghum, $2.08 per bushel;
       ``(4) in the case of barley, $2.00 per bushel;
       ``(5) in the case of oats, $1.50 per bushel;
       ``(6) in the case of upland cotton, $0.55 per pound;
       ``(7) in the case of extra long staple cotton, $0.7965 per 
     pound;
       ``(8) in the case of rice, $6.50 per hundredweight;
       ``(9) in the case of soybeans, $5.20 per bushel;
       ``(10) in the case of oilseeds (other than soybeans), 
     $0.095 per pound;
       ``(11) in the case of graded wool, $1.00 per pound;
       ``(12) in the case of nongraded wool, $.40 per pound;
       ``(13) in the case of mohair, $2.00 per pound;
       ``(14) in the case of honey, $.60 per pound;
       ``(15) in the case of dry peas, $6.78 per hundredweight;
       ``(16) in the case of lentils, $12.79 per hundredweight;
       ``(17) in the case of large chickpeas, $17.44 per 
     hundredweight; and
       ``(18) in the case of small chickpeas, $8.10 per 
     hundredweight.
       ``(b) Adjustments.--
       ``(1) In general.--The Secretary may make appropriate 
     adjustments in the loan rates for any loan commodity for 
     differences in grade, type, quality, location, and other 
     factors.
       ``(2) Manner.--The adjustments under this subsection shall, 
     to the maximum extent practicable, be made in such manner 
     that the average loan rate for the loan commodity will, on 
     the basis of the anticipated incidence of the factors 
     described in paragraph (1), be equal to the loan rate 
     provided under this section.''.
       (b) Conforming Amendment.--Section 162 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7282) is repealed.

     SEC. 124. TERM OF LOANS.

       Section 133 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7233) is amended to read as 
     follows:

     ``SEC. 133. TERM OF LOANS.

       ``In the case of each loan commodity, a marketing loan 
     under section 131 shall have a term of 9 months beginning on 
     the first day of the first month after the month in which the 
     loan is made.''.

     SEC. 125. REPAYMENT OF LOANS.

       Section 134(a) of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7234(a)) is amended--
       (1) by striking ``wheat, corn, grain sorghum, barley, oats, 
     and oilseeds'' and inserting ``a loan commodity (other than 
     upland cotton, rice, and extra long staple cotton)''; and
       (2) in paragraph (2)--
       (A) in subparagraph (C), by striking ``and'' at the end;
       (B) in subparagraph (D), by striking the period and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(E) minimize discrepancies in marketing loan benefits 
     across State boundaries and across county boundaries.''.

     SEC. 126. LOAN DEFICIENCY PAYMENTS.

       Section 135 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7235) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) In General.--The Secretary may make loan deficiency 
     payments available to producers on a farm that, although 
     eligible to obtain a marketing assistance loan under section 
     131 with respect to a loan commodity, agree to forgo 
     obtaining the loan for the loan commodity in return for 
     payments under this section.''; and
       (2) by striking subsections (e) and (f) and inserting the 
     following:
       ``(e) Beneficial Interest.--
       ``(1) In general.--A producer shall be eligible for a 
     payment for a loan commodity under this section only if the 
     producer has a beneficial interest in the loan commodity, as 
     determined by the Secretary.
       ``(2) Application.--The Secretary shall make a payment 
     under this section to the producers on a farm with respect to 
     a quantity of a loan commodity as of the earlier of--

[[Page S12877]]

       ``(A) the date on which the producers on the farm marketed 
     or otherwise lost beneficial interest in the loan commodity, 
     as determined by the Secretary; or
       ``(B) the date the producers on the farm request the 
     payment.''.

     SEC. 127. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND 
                   COTTON.

       Section 136(a) of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7236(a)) is amended by adding at 
     the end the following:
       ``(4) Application of threshold.--During the period 
     beginning on the date of this paragraph and ending on July 
     31, 2003, the Secretary shall make the calculations under 
     paragraphs (1)(A) and (2) and subsection (b)(1)(B) without 
     regard to the 1.25 cent threshold provided under those 
     paragraphs and subsection.''.

                     Subtitle C--Other Commodities

                            CHAPTER 1--DAIRY

     SEC. 131. MILK PRICE SUPPORT PROGRAM.

       Section 141 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7251) (as amended by section 
     772(a) of Public Law 107-76) is amended in subsections (b)(5) 
     and (h) by striking ``May 31, 2002'' each place it appears 
     and inserting ``December 31, 2006''.

     SEC. 132. NATIONAL DAIRY PROGRAM.

       The Federal Agriculture Improvement and Reform Act of 1996 
     (as amended by section 772(b) of Public Law 107-76) is 
     amended by inserting after section 141 (7 U.S.C. 7251) the 
     following:

     ``SEC. 142. NATIONAL DAIRY PROGRAM.

       ``(a) Dairy Market Loss Assistance Program.--
       ``(1) Definitions.--In this subsection:
       ``(A) Average price of milk.--The term `average price of 
     milk' means the blending of the prices of milk for use as 
     fluid milk and in cheese, ice cream, butter, and nonfat dry 
     milk in the marketing area where the milk was marketed, as 
     determined by the Secretary.
       ``(B) Producer.--The term `producer' means an individual or 
     entity that directly or indirectly (as determined by the 
     Secretary) shares in the risk of producing milk.
       ``(2) Program.--Subject to paragraph (8), the Secretary 
     shall provide market loss assistance payments to producers on 
     a dairy farm with respect to the production of milk in a 
     State other than a participating State (as defined in 
     subsection (b)(1)) that is marketed during the period 
     beginning on December 1, 2001, and ending on September 30, 
     2005.
       ``(3) Amount.--Subject to paragraph (8), payments to a 
     producer under this subsection shall be calculated by 
     multiplying--
       ``(A) the payment quantity for the producer during the 
     applicable quarter established under paragraph (4); by
       ``(B) the payment rate established under paragraph (5).
       ``(4) Payment quantity.--
       ``(A) In general.--Subject to subparagraph (B), the payment 
     quantity for a producer during the applicable quarter under 
     this subsection shall be equal to the quantity of milk 
     produced and marketed by the producer during the quarter.
       ``(B) Limitation.--The payment quantity for a producer 
     during the applicable fiscal year under this subsection shall 
     not exceed the milk marketing base for the producer 
     established under subsection (c).
       ``(5) Payment rate.--The payment rate for a payment under 
     this subsection shall be calculated by multiplying (as 
     determined by the Secretary)--
       ``(A) 40 percent; by
       ``(B) the amount by which--
       ``(i) the average price of milk during the applicable 
     quarter; is less than
       ``(ii) the average price of milk for the same quarter 
     during each of the previous 5 years.
       ``(6) Reporting of production.--The Secretary may require 
     producers that receive payments under this subsection to 
     report the quantity of milk produced and marketed by the 
     producer on the dairy farm of the producer, in a manner 
     determined by the Secretary.
       ``(7) Timing of payments.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     payments made under this subsection shall be made on a 
     quarterly basis.
       ``(B) Payments for fiscal year 2002.--Payments under this 
     subsection for fiscal year 2002 shall not be made before 
     October 1, 2002.
       ``(8) Funding.--The Secretary shall use not more than 
     $1,500,000,000 of funds of the Commodity Credit Corporation 
     to carry out this subsection.
       ``(b) Northeast Dairy Market Loss Payments.--
       ``(1) Definitions.--In this subsection:
       ``(A) Class i milk.--The term `Class I milk' means milk 
     (including milk components) classified as Class I milk under 
     a Federal milk marketing order.
       ``(B) Eligible production.--The term `eligible production' 
     means milk produced by a producer in a participating State.
       ``(C) Federal milk marketing order.--The term `Federal milk 
     marketing order' means an order issued under section 8c of 
     the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937.
       ``(D) Participating state.--The term `participating State' 
     means Connecticut, Delaware, Maine, Maryland, Massachusetts, 
     New Hampshire, New Jersey, New York, Pennsylvania, Rhode 
     Island, Vermont, and West Virginia.
       ``(E) Producer.--The term `producer' means an individual or 
     entity that directly or indirectly (as determined by the 
     Secretary)--
       ``(i) shares in the risk of producing milk; and
       ``(ii) makes contributions (including land, labor, 
     management, equipment, or capital) to the dairy farming 
     operation of the individual or entity that are at least 
     commensurate with the share of the individual or entity of 
     the proceeds of the operation.
       ``(2) Payments.--Subject to paragraph (9), the Secretary 
     shall offer to enter into contracts with producers on a dairy 
     farm located in a participating State under which the 
     producers receive payments on eligible production in exchange 
     for compliance on the farm with--
       ``(A) applicable highly erodible land conservation 
     requirements under subtitle B of title XII of the Food 
     Security Act of 1985 (16 U.S.C. 3811 et seq.); and
       ``(B) applicable wetland conservation requirements under 
     subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.).
       ``(3) Amount.--Payments to a producer under this subsection 
     shall be calculated by multiplying (as determined by the 
     Secretary)--
       ``(A) the payment quantity for the producer during the 
     applicable month established under paragraph (4);
       ``(B) the amount equal to--
       ``(i) $16.94 per hundredweight; less
       ``(ii) the Class I milk price per hundredweight in Boston 
     under the applicable Federal milk marketing order; by
       ``(C) 45 percent.
       ``(4) Payment quantity.--
       ``(A) In general.--Subject to subparagraph (B), the payment 
     quantity for a producer during the applicable month under 
     this subsection shall be equal to the quantity of milk 
     produced and marketed by the producer during the month.
       ``(B) Limitation.--The payment quantity for a producer 
     during the applicable fiscal year under this subsection shall 
     not exceed the milk marketing base for the producer 
     established under subsection (c).
       ``(5) Payments.--A payment under a contract under this 
     subsection shall be made on a monthly basis not later than 60 
     days after the last day of the month for which the payment is 
     made.
       ``(6) Signup.--The Secretary shall offer to enter into 
     contracts under this subsection during the period beginning 
     on December 1, 2001, and ending on September 30, 2005.
       ``(7) Duration of contract.--
       ``(A) In general.--Except as provided in subparagraph (B) 
     and paragraph (8), any contract entered into by producers on 
     a dairy farm under this subsection shall cover eligible 
     production marketed by the producers on the dairy farm during 
     the period starting with the first day of month the producers 
     on the dairy farm enter into the contract and ending on 
     September 30, 2005.
       ``(B) Violations.--If a producer violates the contract, the 
     Secretary may--
       ``(i) terminate the contract and allow the producer to 
     retain any payments received under the contract; or
       ``(ii) allow the contract to remain in effect and require 
     the producer to repay a portion of the payments received 
     under the contract based on the severity of the violation.
       ``(8) Transition rule.--In addition to any payment that is 
     otherwise available under this subsection, if the producers 
     on a dairy farm enter into a contract under this subsection 
     by March 1, 2002, the Secretary shall make a payment under 
     this subsection on the quantity of eligible production of the 
     producer marketed during the period beginning on December 1, 
     2001, and ending on January 1, 2002.
       ``(9) Funding.--The Secretary shall use not more than 
     $500,000,000 of funds of the Commodity Credit Corporation to 
     carry out this subsection.
       ``(c) Milk Marketing Base.--
       ``(1) Definition of new producer.--In this subsection, the 
     term `new producer' means a producer of milk that did not 
     have an interest in the production of milk during any of 1999 
     through 2001 fiscal years.
       ``(2) Established producers.--In the case of a producer of 
     milk other than a new producer, the milk marketing base of a 
     producer for a fiscal year under this section shall be equal 
     to the lesser of--
       ``(A) the average quantity of milk marketed for commercial 
     use in which the producer has had a direct or indirect 
     interest during each of the 1999 through 2001 fiscal years; 
     or
       ``(B) 8,000,000 pounds.
       ``(3) New producers.--In the case of a new producer, the 
     milk marketing base of the new producer under this section 
     shall be equal to--
       ``(A) during each of the first 3 fiscal years of milk 
     production by the new producer, 1,500,000 pounds; and
       ``(B) during each subsequent year of milk production, the 
     lesser of--
       ``(i) the average quantity of milk marketed for commercial 
     use in which the producer has had a direct or indirect 
     interest during the first 3 years of milk production by the 
     new producer; or
       ``(ii) 8,000,000 pounds.
       ``(4) Adjustments.--The Secretary may provide for the 
     adjustment of any milk marketing base of a producer under 
     this subsection--

[[Page S12878]]

       ``(A) if the production of milk used to determine the milk 
     marketing base of the producer has been adversely affected by 
     damaging weather or a related condition (as determined by the 
     Secretary); or
       ``(B) if the adjustment is necessary to provide fair and 
     equitable treatment to tenants and sharecroppers.
       ``(5) Transfers.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a producer that is assigned a milk marketing base under this 
     subsection may not transfer the base to any person.
       ``(B) Family members.--A producer that is assigned a milk 
     marketing base under this subsection may irrevocably transfer 
     all or part of the base to a family member of the producer.
       ``(6) Schemes or devices.--If the Secretary determines that 
     any producer has adopted a scheme or device to increase the 
     milk marketing base of the producer under this subsection, 
     the producer shall become ineligible for any milk marketing 
     base under this subsection.''.

     SEC. 133. DAIRY EXPORT INCENTIVE AND DAIRY INDEMNITY 
                   PROGRAMS.

       (a) Dairy Export Incentive Program.--Section 153(a) of the 
     Food Security Act of 1985 (15 U.S.C. 713a-14(a)) is amended 
     by striking ``2002'' and inserting ``2006''.
       (b) Dairy Indemnity Program.--Section 3 of Public Law 90-
     484 (7 U.S.C. 450l) is amended by striking ``1995'' and 
     inserting ``2006''.

     SEC. 134. FLUID MILK PROMOTION.

       (a) Definition of Fluid Milk Product.--Section 1999C of the 
     Fluid Milk Promotion Act of 1990 (7 U.S.C. 6402) is amended 
     by striking paragraph (3) and inserting the following:
       ``(3) Fluid milk product.--The term `fluid milk product' 
     has the meaning given the term in--
       ``(A) section 1000.15 of title 7, Code of Federal 
     Regulations, subject to such amendments as may be made by the 
     Secretary; or
       ``(B) any successor regulation.''.
       (b) Definition of Fluid Milk Processor.--Section 1999C(4) 
     of the Fluid Milk Promotion Act of 1990 (7 U.S.C. 6402(4)) is 
     amended by striking ``500,000'' and inserting ``3,000,000''.
       (c) Elimination of Order Termination Date.--Section 1999O 
     of the Fluid Milk Promotion Act of 1990 (7 U.S.C. 6414) is 
     amended--
       (1) by striking subsection (a); and
       (2) by redesignating subsections (b) and (c) as subsections 
     (a) and (b), respectively.

     SEC. 135. DAIRY PRODUCT MANDATORY REPORTING.

       Section 272(1) of the Agricultural Marketing Act of 1946 (7 
     U.S.C. 1637a(1)) is amended--
       (1) by striking ``means manufactured dairy products'' and 
     inserting ``means--
       ``(A) manufactured dairy products'';
       (2) by striking the period at the end and inserting ``; 
     and''; and
       (3) by adding at the end the following:
       ``(B) substantially identical products designated by the 
     Secretary.''.

     SEC. 136. FUNDING OF DAIRY PROMOTION AND RESEARCH PROGRAM.

       (a) Definitions.--Section 111 of the Dairy Production 
     Stabilization Act of 1983 (7 U.S.C. 4502) is amended--
       (1) in subsection (k), by striking ``and'' at the end;
       (2) in subsection (l), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(m) the term `imported dairy product' means any dairy 
     product that is imported into the United States, including a 
     dairy product imported into the United States in the form 
     of--
       ``(1) milk, cream, and fresh and dried dairy products;
       ``(2) butter and butterfat mixtures;
       ``(3) cheese; and
       ``(4) casein and mixtures;
       ``(n) the term `importer' means a person that imports an 
     imported dairy product into the United States; and
       ``(o) the term `Customs' means the United States Customs 
     Service.''.
       (b) Representation of Importers on Board.--Section 113(b) 
     of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 
     4504(b)) is amended--
       (1) by inserting ``National Dairy Promotion and Research 
     Board.--'' after ``(b)'';
       (2) by designating the first through ninth sentences as 
     paragraphs (1) through (5) and paragraphs (7) through (10), 
     respectively, and indenting the paragraphs appropriately;
       (3) in paragraph (2) (as so designated), by striking 
     ``Members'' and inserting ``Except as provided in paragraph 
     (6), the members''; and
       (4) by inserting after paragraph (5) (as so designated) the 
     following:
       ``(6) Importers.--
       ``(A) Representation.--The Secretary shall appoint not more 
     than 2 members who represent importers of dairy products and 
     are subject to assessments under the order, to reflect the 
     proportion of domestic production and imports supplying the 
     United States market, as determined by the Secretary on the 
     basis of the average volume of domestic production of dairy 
     products in proportion to the average volume of imports of 
     dairy products in the United States during the immediately 
     preceding 3 years.
       ``(B) Additional members; nominations.--The members 
     appointed under this paragraph--
       ``(i) shall be in addition to the total number of members 
     appointed under paragraph (2); and
       ``(ii) shall be appointed from nominations submitted by 
     importers under such procedures as the Secretary determines 
     to be appropriate.''.
       (c) Importer Assessment.--Section 113(g) of the Dairy 
     Production Stabilization Act of 1983 (7 U.S.C. 4504(g)) is 
     amended--
       (1) by inserting ``Assessments.--'' after ``(g)'';
       (2) by designating the first through fifth sentences as 
     paragraphs (1) through (5), respectively, and indenting 
     appropriately; and
       (3) by adding at the end the following:
       ``(6) Importers.--
       ``(A) In general.--The order shall provide that each 
     importer of imported dairy products shall pay an assessment 
     to the Board in the manner prescribed by the order.
       ``(B) Time for payment.--
       ``(i) In general.--The assessment on imported dairy 
     products shall be--

       ``(I) paid by the importer to Customs at the time of the 
     entry of the products into the United States; and
       ``(II) remitted by Customs to the Board.

       ``(ii) Time of entry.--For purposes of this subparagraph, 
     entry of the products into the United States shall be 
     considered to have occurred when a dairy product is released 
     from custody of Customs and introduced into the stream of 
     commerce within the United States.
       ``(iii) Importers.--For purposes of this subparagraph, an 
     importer includes--

       ``(I) a person that holds title to a dairy product produced 
     outside the United States immediately on release by Customs; 
     and
       ``(II) a person that acts on behalf of other persons, as an 
     agent, broker, or consignee, to secure the release of a dairy 
     product from Customs and introduce the released dairy product 
     into the stream of commerce.

       ``(C) Rate.--The rate of assessment on imported dairy 
     products shall be determined in the same manner as the rate 
     of assessment per hundredweight or the equivalent of milk.
       ``(D) Value of products.--For the purpose of determining 
     the assessment on imported dairy products under subparagraph 
     (C), the value to be placed on imported dairy products shall 
     be established by the Secretary in a fair and equitable 
     manner.
       ``(E) Use of assessments on imported dairy products.--
     Assessments collected on imported dairy products shall not be 
     used for foreign market promotion of United States dairy 
     products.''.
       (d) Records.--Section 113(k) of the Dairy Production 
     Stabilization Act of 1983 (7 U.S.C. 4504(k)) is amended in 
     the first sentence by striking ``person receiving'' and 
     inserting ``importer of imported dairy products, each person 
     receiving''.
       (e) Importer Eligibility To Vote in Referendum.--Section 
     116(b) of the Dairy Promotion Stabilization Act of 1983 (7 
     U.S.C. 4507(b)) is amended--
       (1) in the first sentence, by inserting ``and importers'' 
     after ``producers'' each place it appears; and
       (2) in the second sentence, by inserting after ``commercial 
     use'' the following: ``and importers voting in the referendum 
     (that have been engaged in the importation of dairy products 
     into the United States during the applicable period, as 
     determined by the Secretary)''.
       (f) Conforming Amendments.--Section 110(b) of the Dairy 
     Production Stabilization Act of 1983 (7 U.S.C. 4501(b)) is 
     amended--
       (1) in the first sentence--
       (A) by inserting after ``commercial use'' the following: 
     ``and on imported dairy products''; and
       (B) by striking ``products produced in the United States.'' 
     and inserting ``products.''; and
       (2) in the second sentence, by inserting after ``produce 
     milk'' the following: ``or the right of any person to import 
     dairy products''.

     SEC. 137. DAIRY STUDIES.

       (a) In General.--The Secretary of Agriculture shall 
     conduct--
       (1) a study of the effects of terminating all Federal 
     programs relating to price support and supply management for 
     milk and granting the consent of Congress to cooperative 
     efforts by States to manage milk prices and supply; and
       (2) a study of the effects of including in the standard of 
     identity for fluid milk a required minimum protein content 
     that is commensurate with the average nonfat solids content 
     of bovine milk produced in the United States.
       (b) Reports.--Not later than September 30, 2002, the 
     Secretary shall submit to the Committee on Agriculture of 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry a report describing the results of 
     each of the studies required under subsection (a).

                            CHAPTER 2--SUGAR

     SEC. 141. SUGAR PROGRAM.

       (a) Loan Rate Adjustments.--Section 156(c) of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7272(c)) is amended--
       (1) by striking ``Reduction in Loan Rates'' and inserting 
     ``Loan Rate Adjustments''; and
       (2) in paragraph (1)--
       (A) by striking ``Reduction required'' and inserting ``In 
     general''; and
       (B) by striking ``shall'' and inserting ``may''.
       (b) Loan Type; Processor Assurances.--Section 156(e) of the 
     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7272(e)) is amended--

[[Page S12879]]

       (1) by striking paragraph (2) and inserting the following:
       ``(2) Processor assurances.--
       ``(A) In general.--The Secretary shall obtain from each 
     processor that receives a loan under this section such 
     assurances as the Secretary considers adequate to ensure that 
     the processor will provide payments to producers that are 
     proportional to the value of the loan received by the 
     processor for the sugar beets and sugarcane delivered by 
     producers to the processor.
       ``(B) Minimum payments.--
       ``(i) In general.--Subject to clause (ii), the Secretary 
     may establish appropriate minimum payments for purposes of 
     this paragraph.
       ``(ii) Limitation.--In the case of sugar beets, the minimum 
     payment established under clause (i) shall not exceed the 
     rate of payment provided for under the applicable contract 
     between a sugar beet producer and a sugar beet processor.
       ``(C) Bankruptcy or insolvency of processors.--
       ``(i) In general.--The Secretary shall use funds of the 
     Commodity Credit Corporation to pay a producer of sugar beets 
     or sugarcane loan benefits described in clause (ii) if--

       ``(I) a processor that has entered into a contract with the 
     producer has filed for bankruptcy protection or is otherwise 
     insolvent;
       ``(II) the assurances under subparagraph (A) are not 
     adequate to ensure compliance with subparagraph (A), as 
     determined by the Secretary;
       ``(III) the producer demands payments of loan benefits 
     required under this section from the processor; and
       ``(IV) the Secretary determines that the processor is 
     unable to provide the loan benefits required under this 
     section.

       ``(ii) Amount.--The amount of loan benefits provided to a 
     producer under clause (i) shall be equal to--

       ``(I) the maximum amount of loan benefits the producer 
     would have been entitled to receive under this section during 
     the 30-day period beginning on the final settlement date 
     provided for in the contract between the producer and 
     processor; less
       ``(II) any such benefits received by the producer from the 
     processor.

       ``(iii) Administration.--On payment to a producer under 
     clause (i), the Secretary shall--

       ``(I) be subrogated to all claims of the producer against 
     the processor and other persons responsible for nonpayment; 
     and
       ``(II) have authority to pursue such claims as are 
     necessary to recover the benefits not paid to the producer by 
     the processor.''; and

       (2) by adding at the end the following:
       ``(3) Administration.--The Secretary may not impose or 
     enforce any prenotification or similar administrative 
     requirement that has the effect of preventing a processor 
     from electing to forfeit the loan collateral on the maturity 
     of the loan.''.
       (c) Termination of Marketing Assessment.--Effective October 
     1, 2001, section 156 of the Federal Agriculture Improvement 
     and Reform Act of 1996 (7 U.S.C. 7272) is amended by striking 
     subsection (f).
       (d) Termination of Forfeiture Penalty.--Section 156 of the 
     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7272) is amended by striking subsection (g).
       (e) In-Process Sugar.--Section 156 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7272) (as amended by subsections (c) and (d)) is amended by 
     inserting after subsection (e) the following:
       ``(f) Loans for In-Process Sugar.--
       ``(1) Definition of in-process sugars and syrups.--In this 
     subsection, the term `in-process sugars and syrups' does not 
     include raw sugar, liquid sugar, invert sugar, invert syrup, 
     or other finished product that is otherwise eligible for a 
     loan under subsection (a) or (b).
       ``(2) Availability.--The Secretary shall make nonrecourse 
     loans available to processors of a crop of domestically grown 
     sugarcane and sugar beets for in-process sugars and syrups 
     derived from the crop.
       ``(3) Loan rate.--The loan rate shall be equal to 80 
     percent of the loan rate applicable to raw cane sugar or 
     refined beet sugar, as determined by the Secretary on the 
     basis of the source material for the in-process sugars and 
     syrups.
       ``(4) Further processing on forfeiture.--
       ``(A) In general.--As a condition of the forfeiture of in-
     process sugars and syrups serving as collateral for a loan 
     under paragraph (2), the processor shall, within such 
     reasonable time period as the Secretary may prescribe and at 
     no cost to the Commodity Credit Corporation, convert the in-
     process sugars and syrups into raw cane sugar or refined beet 
     sugar of acceptable grade and quality for sugars eligible for 
     loans under subsection (a) or (b).
       ``(B) Transfer to corporation.--Once the in-process sugars 
     and syrups are fully processed into raw cane sugar or refined 
     beet sugar, the processor shall transfer the sugar to the 
     Commodity Credit Corporation.
       ``(C) Payment to processor.--On transfer of the sugar, the 
     Secretary shall make a payment to the processor in an amount 
     equal to the amount obtained by multiplying--
       ``(i) the difference between--

       ``(I) the loan rate for raw cane sugar or refined beet 
     sugar, as appropriate; and
       ``(II) the loan rate the processor received under paragraph 
     (3); by

       ``(ii) the quantity of sugar transferred to the Secretary.
       ``(5) Loan conversion.--If the processor does not forfeit 
     the collateral as described in paragraph (4), but instead 
     further processes the in-process sugars and syrups into raw 
     cane sugar or refined beet sugar and repays the loan on the 
     in-process sugars and syrups, the processor may obtain a loan 
     under subsection (a) or (b) for the raw cane sugar or refined 
     beet sugar, as appropriate.''.
       (f) Administration of Program.--Section 156 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7272) (as amended by subsection (e)) is amended by inserting 
     after subsection (f) the following:
       ``(g) Avoiding Forfeitures; Corporation Inventory 
     Disposition.--
       ``(1) In general.--Subject to subsection (e)(3), to the 
     maximum extent practicable, the Secretary shall operate the 
     program established under this section at no cost to the 
     Federal Government by avoiding the forfeiture of sugar to the 
     Commodity Credit Corporation.
       ``(2) Inventory disposition.--
       ``(A) In general.--To carry out paragraph (1), the 
     Commodity Credit Corporation may accept bids to obtain raw 
     cane sugar or refined beet sugar in the inventory of the 
     Commodity Credit Corporation from (or otherwise make 
     available such commodities, on appropriate terms and 
     conditions, to) processors of sugarcane and processors of 
     sugar beets (acting in conjunction with the producers of the 
     sugarcane or sugar beets processed by the processors) in 
     return for the reduction of production of raw cane sugar or 
     refined beet sugar, as appropriate.
       ``(B) Additional authority.--The authority provided under 
     this paragraph is in addition to any authority of the 
     Commodity Credit Corporation under any other law.''.
       (g) Information Reporting.--Section 156(h) of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7272(h)) is amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (4) and (5), respectively;
       (2) by inserting after paragraph (1) the following:
       ``(2) Duty of producers to report.--
       ``(A) Proportionate share states.--As a condition of a loan 
     made to a processor for the benefit of a producer, the 
     Secretary shall require each producer of sugarcane located in 
     a State (other than the Commonwealth of Puerto Rico) in which 
     there are in excess of 250 producers of sugarcane to report, 
     in the manner prescribed by the Secretary, the sugarcane 
     yields and acres planted to sugarcane of the producer.
       ``(B) Other states.--The Secretary may require each 
     producer of sugarcane or sugar beets not covered by paragraph 
     (1) to report, in a manner prescribed by the Secretary, the 
     yields of, and acres planted to, sugarcane or sugar beets, 
     respectively, of the producer.
       ``(3) Duty of importers to report.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Secretary shall require an importer of sugars, syrups, or 
     molasses to be used for human consumption or to be used for 
     the extraction of sugar for human consumption to report, in 
     the manner prescribed by the Secretary, the quantities of the 
     products imported by the importer and the sugar content or 
     equivalent of the products.
       ``(B) Tariff-rate quotas.--Subparagraph (A) shall not apply 
     to sugars, syrups, or molasses that are within the quantities 
     of tariff-rate quotas that are subject to the lower rate of 
     duties.''; and
       (3) in paragraph (5) (as redesignated by paragraph (1)), by 
     striking ``paragraph (1)'' and inserting ``this subsection''.
       (h) Crops.--Section 156(i) of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7251(i)) is 
     amended--
       (1) by striking ``(other than subsection (f))''; and
       (2) by striking ``2002'' and inserting ``2006''.
       (i) Interest Rate.--Section 163 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7283) is 
     amended--
       (1) by inserting ``(a) In General.--'' before 
     ``Notwithstanding''; and
       (2) by adding at the end the following:
       ``(b) Sugar.--For purposes of this section, raw cane sugar, 
     refined beet sugar, and in-process sugar eligible for a loan 
     under section 156 shall not be considered an agricultural 
     commodity.''.

     SEC. 142. STORAGE FACILITY LOANS.

       Chapter 2 of subtitle D of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7271 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 157. STORAGE FACILITY LOANS.

       ``(a) In General.--Notwithstanding any other provision of 
     law and as soon as practicable after the date of enactment of 
     this section, the Commodity Credit Corporation shall amend 
     part 1436 of title 7, Code of Federal Regulations, to 
     establish a sugar storage facility loan program to provide 
     financing for processors of domestically-produced sugarcane 
     and sugar beets to construct or upgrade storage and handling 
     facilities for raw sugars and refined sugars.
       ``(b) Eligible Processors.--A storage facility loan shall 
     be made available to any processor of domestically produced 
     sugarcane or sugar beets that (as determined by the 
     Secretary)--
       ``(1) has a satisfactory credit history;
       ``(2) has a need for increased storage capacity, taking 
     into account the effects of marketing allotments; and
       ``(3) demonstrates an ability to repay the loan.
       ``(c) Term of Loans.--A storage facility loan shall--

[[Page S12880]]

       ``(1) have a minimum term of 7 years; and
       ``(2) be in such amounts and on such terms and conditions 
     (including terms and conditions relating to downpayments, 
     collateral, and eligible facilities) as are normal, 
     customary, and appropriate for the size and commercial nature 
     of the borrower.''.

     SEC. 143. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

       (a) Information Reporting.--Section 359a of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa) is 
     repealed.
       (b) Estimates.--Section 359b of the Agricultural Adjustment 
     Act of 1938 (7 U.S.C. 1359bb) is amended--
       (1) in the section heading--
       (A) by inserting ``FLEXIBLE'' before ``MARKETING''; and
       (B) by striking ``AND CRYSTALLINE FRUCTOSE'';
       (2) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking ``Before'' and inserting ``Not later than 
     August 1 before'';
       (ii) by striking ``1992 through 1998'' and inserting ``2002 
     through 2006'';
       (iii) in subparagraph (A), by striking ``(other than 
     sugar'' and all that follows through ``stocks'';
       (iv) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (C) and (E), respectively;
       (v) by inserting after subparagraph (A) the following:
       ``(B) the quantity of sugar that would provide for 
     reasonable carryover stocks;'';
       (vi) in subparagraph (C) (as so redesignated)--

       (I) by striking ``or'' and all that follows through 
     ``beets''; and
       (II) by striking ``and'' following the semicolon;

       (vii) by inserting after subparagraph (C) (as so 
     redesignated) the following:
       ``(D) the quantity of sugar that will be available from the 
     domestic processing of sugarcane and sugar beets; and''; and
       (viii) in subparagraph (E) (as so redesignated)--

       (I) by striking ``quantity of sugar'' and inserting 
     ``quantity of sugars, syrups, and molasses'';
       (II) by inserting ``human'' after ``imported for'' the 
     first place it appears;
       (III) by inserting after ``consumption'' the first place it 
     appears the following: ``or to be used for the extraction of 
     sugar for human consumption'';
       (IV) by striking ``year'' and inserting ``year, whether 
     such articles are under a tariff-rate quota or are in excess 
     or outside of a tariff-rate quota''; and
       (V) by striking ``(other than sugar'' and all that follows 
     through ``carry-in stocks'';

       (B) by redesignating paragraph (2) as paragraph (3);
       (C) by inserting after paragraph (1) the following:
       ``(2) Exclusion.--The estimates under this subsection shall 
     not apply to sugar imported for the production of polyhydric 
     alcohol or to any sugar refined and reexported in refined 
     form or in products containing sugar.''; and
       (D) in paragraph (3) (as so redesignated)--
       (i) in the paragraph heading, by striking ``Quarterly 
     reestimates'' and inserting ``Reestimates''; and
       (ii) by inserting ``as necessary, but'' after ``a fiscal 
     year'';
       (3) in subsection (b)--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) In general.--By the beginning of each fiscal year, 
     the Secretary shall establish for that fiscal year 
     appropriate allotments under section 359c for the marketing 
     by processors of sugar processed from sugar beets and from 
     domestically-produced sugarcane at a level that the Secretary 
     estimates will result in no forfeitures of sugar to the 
     Commodity Credit Corporation under the loan program for sugar 
     established under section 156 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7251).''; and
       (B) in paragraph (2), by striking ``or crystalline 
     fructose'';
       (4) by striking subsection (c);
       (5) by redesignating subsection (d) as subsection (c); and
       (6) in subsection (c) (as so redesignated)--
       (A) by striking paragraph (2);
       (B) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively; and
       (C) in paragraph (2) (as so redesignated)--
       (i) by striking ``or manufacturer'' and all that follows 
     through ``(2)''; and
       (ii) by striking ``or crystalline fructose''.
       (c) Establishment.--Section 359c of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359cc) is amended--
       (1) in the section heading, by inserting ``FLEXIBLE'' after 
     ``OF'';
       (2) in subsection (a), by inserting ``flexible'' after 
     ``establish'';
       (3) in subsection (b)--
       (A) in paragraph (1)(A), by striking ``1,250,000'' and 
     inserting ``1,532,000''; and
       (B) in paragraph (2), by striking ``to the maximum extent 
     practicable'';
       (4) by striking subsection (c) and inserting the following:
       ``(c) Marketing Allotment for Sugar Derived from Sugar 
     Beets and Sugar Derived from Sugarcane.--The overall 
     allotment quantity for the fiscal year shall be allotted 
     between--
       ``(1) sugar derived from sugar beets by establishing a 
     marketing allotment for a fiscal year at a quantity equal to 
     the product of multiplying the overall allotment quantity for 
     the fiscal year by 54.35 percent; and
       ``(2) sugar derived from sugarcane by establishing a 
     marketing allotment for a fiscal year at a quantity equal to 
     the product of multiplying the overall allotment quantity for 
     the fiscal year by 45.65 percent.'';
       (5) by striking subsection (d) and inserting the following:
       ``(d) Filling Cane Sugar and Beet Sugar Allotments.--
       ``(1) Cane sugar.--Each marketing allotment for cane sugar 
     established under this section may only be filled with sugar 
     processed from domestically grown sugarcane.
       ``(2) Beet sugar.--Each marketing allotment for beet sugar 
     established under this section may only be filled with sugar 
     domestically processed from sugar beets.'';
       (6) by striking subsection (e);
       (7) by redesignating subsection (f) as subsection (e);
       (8) in subsection (e) (as so redesignated)--
       (A) by striking ``The allotment'' and inserting the 
     following:
       ``(1) In general.--The allotment'';
       (B) in paragraph (1) (as so redesignated)--
       (i) by striking ``the 5'' and inserting ``the'';
       (ii) by inserting after ``sugarcane is produced,'' the 
     following: ``after a hearing (if requested by the affected 
     sugarcane processors and growers) and on such notice as the 
     Secretary by regulation may prescribe,''; and
       (iii) by striking ``on the basis of past marketings'' and 
     all that follows through ``allotments'' and inserting ``as 
     provided in this subsection and section 359d(a)(2)(A)(iv)''; 
     and
       (C) by inserting after paragraph (1) (as so designated) the 
     following:
       ``(2) Offshore allotment.--
       ``(A) Collectively.--Prior to the allotment of sugar 
     derived from sugarcane to any other State, 325,000 short 
     tons, raw value shall be allotted to the offshore States.
       ``(B) Individually.--The collective offshore State 
     allotment provided for under subparagraph (A) shall be 
     further allotted among the offshore States in which sugarcane 
     is produced, after a hearing (if requested by the affected 
     sugarcane processors and growers) and on such notice as the 
     Secretary by regulation may prescribe, in a fair and 
     equitable manner on the basis of--
       ``(i) past marketings of sugar, based on the average of the 
     2 highest years of production of raw cane sugar from the 1996 
     through 2000 crops;
       ``(ii) the ability of processors to market the sugar 
     covered under the allotments for the crop year; and
       ``(iii) past processings of sugar from sugarcane based on 
     the 3-year average of the 1998 through 2000 crop years.
       ``(3) Mainland allotment.--The allotment for sugar derived 
     from sugarcane, less the amount provided for under paragraph 
     (2), shall be allotted among the mainland States in the 
     United States in which sugarcane is produced, after a hearing 
     (if requested by the affected sugarcane processors and 
     growers) and on such notice as the Secretary by regulation 
     may prescribe, in a fair and equitable manner on the basis 
     of--
       ``(A) past marketings of sugar, based on the average of the 
     2 highest years of production of raw cane sugar from the 1996 
     through 2000 crops;
       ``(B) the ability of processors to market the sugar covered 
     under the allotments for the crop year; and
       ``(C) past processings of sugar from sugarcane, based on 
     the 3 crop years with the greatest processings (in the 
     mainland States collectively) during the 1991 through 2000 
     crop years.'';
       (9) by inserting after subsection (e) (as so redesignated) 
     the following:
       ``(f) Filling Cane Sugar Allotments.--Except as provided in 
     section 359e, a State cane sugar allotment established under 
     subsection (e) for a fiscal year may be filled only with 
     sugar processed from sugarcane grown in the State covered by 
     the allotment.'';
       (10) in subsection (g)--
       (A) in paragraph (1), by striking ``359b(a)(2)--'' and all 
     that follows through the comma at the end of subparagraph (C) 
     and inserting ``359b(a)(3), adjust upward or downward 
     marketing allotments in a fair and equitable manner'';
       (B) in paragraph (2), by striking ``359f(b)'' and inserting 
     ``359f(c)''; and
       (C) in paragraph (3)--
       (i) in the paragraph heading, by striking ``Reductions'' 
     and inserting ``Carry-over of reductions'';
       (ii) by inserting after ``this subsection, if'' the 
     following: ``at the time of the reduction'';
       (iii) by striking ``price support'' and inserting 
     ``nonrecourse'';
       (iv) by striking ``206'' and all that follows through ``the 
     allotment'' and inserting ``156 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7251),''; and
       (v) by striking ``, if any,''; and
       (11) by striking subsection (h) and inserting the 
     following:
       ``(h) Suspension of Allotments.--Whenever the Secretary 
     estimates or reestimates under section 359b(a), or has reason 
     to believe, that imports of sugars, syrups or molasses for 
     human consumption or to be used for the extraction of sugar 
     for human consumption, whether under a tariff-rate quota or 
     in excess or outside of a tariff-rate quota, will exceed 
     1,532,000 short tons (raw value equivalent), and that the 
     imports would lead to a reduction of the overall allotment 
     quantity, the Secretary shall suspend the marketing 
     allotments established under this section until such time as 
     the imports have been restricted, eliminated, or reduced to 
     or

[[Page S12881]]

     below the level of 1,532,000 short tons (raw value 
     equivalent).''.
       (d) Allocation.--Section 359d(a)(2) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359dd(a)(2)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``The Secretary'' and inserting the 
     following:
       ``(i) In general.--The Secretary'';
       (B) in the first sentence of clause (i) (as so 
     designated)--
       (i) by striking ``interested parties'' and inserting ``the 
     affected sugarcane processors and growers''; and
       (ii) by striking ``by taking'' and all that follows through 
     ``allotment allocated.'' and inserting ``under this 
     subparagraph.''; and
       (C) by inserting after clause (i) the following:
       ``(ii) Multiple processor states.--Except as provided in 
     clauses (iii) and (iv), the Secretary shall allocate the 
     allotment for cane sugar among multiple cane sugar processors 
     in a single State based on--

       ``(I) past marketings of sugar, based on the average of the 
     2 highest years of production of raw cane sugar from among 
     the 1996 through 2000 crops;
       ``(II) the ability of processors to market sugar covered by 
     that portion of the allotment allocated for the crop year; 
     and
       ``(III) past processings of sugar from sugarcane, based on 
     the average of the 3 highest years of production during the 
     1996 through 2000 crop years.

       ``(iii) Talisman processing facility.--In the case of 
     allotments under clause (ii) attributable to the operations 
     of the Talisman processing facility before the date of 
     enactment of this clause, the Secretary shall allocate the 
     allotment among processors in the State under clause (i) in 
     accordance with the agreements of March 25 and 26, 1999, 
     between the affected processors and the Secretary of the 
     Interior.
       ``(iv) Proportionate share states.--In the case of States 
     subject to section 359f(c), the Secretary shall allocate the 
     allotment for cane sugar among multiple cane sugar processors 
     in a single state based on--

       ``(I) past marketings of sugar, based on the average of the 
     2 highest years of production of raw cane sugar from among 
     the 1997 through 2001 crop years;
       ``(II) the ability of processors to market sugar covered by 
     that portion of the allotments allocated for the crop year; 
     and
       ``(III) past processings of sugar from sugarcane, based on 
     the average of the 2 highest crop years of crop production 
     during the 1997 through 2001 crop years.

       ``(v) New entrants.--

       ``(I) In general.--Notwithstanding clauses (ii) and (iv), 
     the Secretary, on application of any processor that begins 
     processing sugarcane on or after the date of enactment of 
     this clause, and after a hearing (if requested by the 
     affected sugarcane processors and growers) and on such notice 
     as the Secretary by regulation may prescribe, may provide the 
     processor with an allocation that provides a fair, efficient 
     and equitable distribution of the allocations from the 
     allotment for the State in which the processor is located.
       ``(II) Proportionate share states.--In the case of 
     proportionate share States, the Secretary shall establish 
     proportionate shares in a quantity sufficient to produce the 
     sugarcane required to satisfy the allocations.
       ``(III) Limitation.--The allotment for a new processor 
     under this clause shall not exceed 50,000 short tons (raw 
     value).

       ``(vi) Transfer of ownership.--Except as otherwise provided 
     in section 359f(c)(8), if a sugarcane processor is sold or 
     otherwise transferred to another owner or closed as part of 
     an affiliated corporate group processing consolidation, the 
     Secretary shall transfer the allotment allocation for the 
     processor to the purchaser, new owner, or successor in 
     interest, as applicable, of the processor.''; and
       (2) in subparagraph (B)--
       (A) in the first sentence, by striking ``The Secretary'' 
     and inserting the following:
       ``(i) In general.--The Secretary'';
       (B) in clause (i) (as so designated)--
       (i) by striking ``interested parties'' and inserting ``the 
     affected sugar beet processors and growers''; and
       (ii) by striking ``processing capacity'' and all that 
     follows through ``allotment allocated.'' and inserting the 
     following: ``the marketings of sugar processed from sugar 
     beets of any or all of the 1996 through 2000 crops, and such 
     other factors as the Secretary may consider appropriate after 
     consultation with the affected sugar beet processors and 
     growers.''; and
       (C) by adding at the end the following:
       ``(ii) New processors.--In the case of any processor that 
     has started processing sugar beets after January 1, 1996, the 
     Secretary shall provide the processor with an allocation that 
     provides a fair, efficient and equitable distribution of the 
     allocations.''.
       (e) Reassignment.--Section 359e(b) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B), by striking the ``and'' after the 
     semicolon;
       (B) by redesignating subparagraph (C) as subparagraph (D);
       (C) by inserting after subparagraph (B) the following:
       ``(C) if after the reassignments, the deficit cannot be 
     completely eliminated, the Secretary shall reassign the 
     estimated quantity of the deficit to the sale of any 
     inventories of sugar held by the Commodity Credit 
     Corporation; and''; and
       (D) in subparagraph (D) (as so redesignated), by inserting 
     ``and sales'' after ``reassignments''; and
       (2) in paragraph (2)--
       (A) in subparagraph (A), by striking the ``and'' after the 
     semicolon;
       (B) in subparagraph (B), by striking ``reassign the 
     remainder to imports.'' and inserting ``use the estimated 
     quantity of the deficit for the sale of any inventories of 
     sugar held by the Commodity Credit Corporation; and''; and
       (C) by inserting after subparagraph (B) the following:
       ``(C) if after the reassignments and sales, the deficit 
     cannot be completely eliminated, the Secretary shall reassign 
     the remainder to imports.''.
       (f) Producer Provisions.--Section 359f of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359ff) is amended--
       (1) in subsection (a)--
       (A) by striking ``Whenever'' and inserting the following:
       ``(1) In general.--If'';
       (B) in the second sentence, by striking ``processor's 
     allocation'' and inserting ``allocation to the processor'';
       (C) by striking ``Any dispute'' and inserting the 
     following:
       ``(2) Arbitration.--
       ``(A) In general.--Any dispute''; and
       (D) by adding at the end the following:
       ``(B) Period.--The arbitration shall, to the maximum extent 
     practicable, be--
       ``(i) commenced not more than 45 days after the request; 
     and
       ``(ii) completed not more than 60 days after the 
     request.'';
       (2) by redesignating subsection (b) as subsection (c);
       (3) by inserting after subsection (a) the following:
       ``(b) Sugar Beet Processing Facility Closures.--
       ``(1) In general.--If a sugar beet processing facility is 
     closed and the sugar beet growers that previously delivered 
     beets to the facility elect to deliver their beets to another 
     processing company, the growers may petition the Secretary to 
     modify allocations under this part to allow the delivery.
       ``(2) Increased allocation for processing company.--The 
     Secretary may increase the allocation to the processing 
     company to which the growers elect to deliver their sugar 
     beets, with the approval of the processing company, to a 
     level that does not exceed the processing capacity of the 
     processing company, to accommodate the change in deliveries.
       ``(3) Decreased allocation for closed company.--The 
     increased allocation shall be deducted from the allocation to 
     the company that owned the processing facility that has been 
     closed and the remaining allocation shall be unaffected.
       ``(4) Timing.--The determinations of the Secretary on the 
     issues raised by the petition shall be made within 60 days 
     after the filing of the petition.''; and
       (4) in subsection (c) (as so redesignated)--
       (A) in paragraph (3)(A), by striking ``the preceding 5 
     years'' and inserting ``the 2 highest years from among the 
     1999, 2000, and 2001 crop years'';
       (B) in paragraph (4)(A), by striking ``each'' and all that 
     follows through ``in effect'' and inserting ``the 2 highest 
     of the 1999, 2000, and 2001 crop years''; and
       (C) by inserting after paragraph (7) the following:
       ``(8) Processing facility closures.--
       ``(A) In general.--If a sugarcane processing facility 
     subject to this subsection is closed and the sugarcane 
     growers that delivered sugarcane to the facility prior to 
     closure elect to deliver their sugarcane to another 
     processing company, the growers may petition the Secretary to 
     modify allocations under this part to allow the delivery.
       ``(B) Increased allocation for processing company.--The 
     Secretary may increase the allocation to the processing 
     company to which the growers elect to deliver the sugarcane, 
     with the approval of the processing company, to a level that 
     does not exceed the processing capacity of the processing 
     company, to accommodate the change in deliveries.
       ``(C) Decreased allocation for closed company.--The 
     increased allocation shall be deducted from the allocation to 
     the company that owned the processing facility that has been 
     closed and the remaining allocation shall be unaffected.
       ``(D) Timing.--The determinations of the Secretary on the 
     issues raised by the petition shall be made within 60 days 
     after the filing of the petition.''.
       (g) Conforming Amendments.--
       (1) Part VII of subtitle B of title III of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 359aa et seq.) is amended by 
     striking the part heading and inserting the following:

         ``PART VII--FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR''.

       (2) Part VII of subtitle B of title III of the Agricultural 
     Adjustment Act of 1938 is amended by inserting before section 
     359a (7 U.S.C. 1359aa) the following:

     ``SEC. 359. DEFINITIONS.

       ``In this part:
       ``(1) Mainland state.--The term `mainland State' means a 
     State other than an offshore State.
       ``(2) Offshore state.--The term `offshore State' means a 
     sugarcane producing State located outside of the continental 
     United States.

[[Page S12882]]

       ``(3) State.--Notwithstanding section 301, the term `State' 
     means--
       ``(A) a State;
       ``(B) the District of Columbia; and
       ``(C) the Commonwealth of Puerto Rico.
       ``(4) United states.--The term `United States', when used 
     in a geographical sense, means all of the States.''.
       (3) Section 359g of the Agricultural Adjustment Act of 1938 
     (7 U.S.C. 1359gg) is amended--
       (A) by striking ``359f'' each place it appears and 
     inserting ``359f(c)'';
       (B) in the first sentence of subsection (b), by striking 
     ``3 consecutive'' and inserting ``5 consecutive''; and
       (C) in subsection (c), by inserting ``or adjusted'' after 
     ``share established''.
       (4) Section 359j of the Agricultural Adjustment Act of 1938 
     (7 U.S.C. 1359jj) is amended by striking subsection (c).

                           CHAPTER 3--PEANUTS

     SEC. 151. PEANUT PROGRAM.

       (a) In General.--Subtitle D of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7251 et seq.) is 
     amended by adding at the end the following:

                          ``CHAPTER 3--PEANUTS

     ``SEC. 158A. DEFINITIONS.

       ``In this chapter:
       ``(1) Counter-cyclical payment.--The term `counter-cyclical 
     payment' means a payment made to peanut producers on a farm 
     under section 158D.
       ``(2) Direct payment.--The term `direct payment' means a 
     payment made to peanut producers on a farm under section 
     158C.
       ``(3) Effective price.--The term `effective price' means 
     the price calculated by the Secretary under section 158D for 
     peanuts to determine whether counter-cyclical payments are 
     required to be made under section 158D for a crop year.
       ``(4) Historical peanut producers on a farm.--The term 
     `historical peanut producers on a farm' means the peanut 
     producers on a farm in the United States that produced or 
     were prevented from planting peanuts during any of the 1998 
     through 2001 crop years.
       ``(5) Income protection price.--The term `income protection 
     price' means the price per ton of peanuts used to determine 
     the payment rate for counter-cyclical payments.
       ``(6) Payment acres.--The term `payment acres' means 85 
     percent of the peanut acres on a farm, as established under 
     section 158B, on which direct payments and counter-cyclical 
     payments are made.
       ``(7) Peanut acres.--The term `peanut acres' means the 
     number of acres assigned to a particular farm for historical 
     peanut producers on a farm pursuant to section 158B(b).
       ``(8) Payment yield.--The term `payment yield' means the 
     yield assigned to a farm by historical peanut producers on 
     the farm pursuant to section 158B(b).
       ``(9) Peanut producer.--The term `peanut producer' means an 
     owner, operator, landlord, tenant, or sharecropper that--
       ``(A) shares in the risk of producing a crop of peanuts in 
     the United States; and
       ``(B) is entitled to share in the crop available for 
     marketing from the farm or would have shared in the crop had 
     the crop been produced.

     ``SEC. 158B. PAYMENT YIELDS, PEANUT ACRES, AND PAYMENT ACRES 
                   FOR FARMS.

       ``(a) Payment Yields and Payment Acres.--
       ``(1) Average yield.--
       ``(A) In general.--The Secretary shall determine, for each 
     historical peanut producer, the average yield for peanuts on 
     all farms of the historical peanut producer for the 1998 
     through 2001 crop years, excluding any crop year during which 
     the producers did not produce peanuts.
       ``(B) Assigned yields.--If, for any of the crop years 
     referred to in subparagraph (A) in which peanuts were planted 
     on a farm by the historical peanut producer, the historical 
     peanut producer has satisfied the eligibility criteria 
     established to carry out section 1102 of the Agriculture, 
     Rural Development, Food and Drug Administration, and Related 
     Agencies Appropriations Act, 1999 (7 U.S.C. 1421 note; Public 
     Law 105-277), the Secretary shall assign to the historical 
     peanut producer a yield for the farm for the crop year equal 
     to 65 percent of the average yield for peanuts for the 
     previous 5 crop years.
       ``(2) Acreage average.--Except as provided in paragraph 
     (3), the Secretary shall determine, for the historical peanut 
     producer, the 4-year average of--
       ``(A) acreage planted to peanuts on all farms for harvest 
     during the 1998 through 2001 crop years; and
       ``(B) any acreage that was prevented from being planting to 
     peanuts during the crop years because of drought, flood, or 
     other natural disaster, or other condition beyond the control 
     of the historical peanut producer, as determined by the 
     Secretary.
       ``(3) Selection by producer.--If a county in which a 
     historical peanut producer described in paragraph (2) is 
     located is declared a disaster area during 1 or more of the 4 
     crop years described in paragraph (2), for purposes of 
     determining the 4-year average acreage for the historical 
     peanut producer, the historical peanut producer may elect to 
     substitute, for not more than 1 of the crop years during 
     which a disaster is declared--
       ``(A) the State average of acreage actually planted to 
     peanuts; or
       ``(B) the average of acreage for the historical peanut 
     producer determined by the Secretary under paragraph (2).
       ``(4) Time for determinations; factors.--
       ``(A) Timing.--The Secretary shall make the determinations 
     required by this subsection not later than 90 days after the 
     date of enactment of this section.
       ``(B) Factors.--In making the determinations, the Secretary 
     shall take into account changes in the number and identity of 
     historical peanut producers sharing in the risk of producing 
     a peanut crop since the 1998 crop year, including providing a 
     method for the assignment of average acres and average yield 
     to a farm when a historical peanut producer is no longer 
     living or an entity composed of historical peanut producers 
     has been dissolved.
       ``(b) Assignment of Yield and Acres to Farms.--
       ``(1) Assignment by historical peanut producers.--The 
     Secretary shall provide each historical peanut producer with 
     an opportunity to assign the average peanut yield and average 
     acreage determined under subsection (a) for the historical 
     peanut producer to cropland on a farm.
       ``(2) Payment yield.--The average of all of the yields 
     assigned by historical peanut producers to a farm shall be 
     considered to be the payment yield for the farm for the 
     purpose of making direct payments and counter-cyclical 
     payments under this chapter.
       ``(3) Peanut acres.--Subject to subsection (e), the total 
     number of acres assigned by historical peanut producers to a 
     farm shall be considered to be the peanut acres for the farm 
     for the purpose of making direct payments and counter-
     cyclical payments under this chapter.
       ``(c) Election.--Not later than 180 days after the date of 
     enactment of this section, a historical peanut producer shall 
     notify the Secretary of the assignments described in 
     subsection (b).
       ``(d) Payment Acres.--The payment acres for peanuts on a 
     farm shall be equal to 85 percent of the peanut acres 
     assigned to the farm.
       ``(e) Prevention of Excess Peanut Acres.--
       ``(1) Required reduction.--If the total of the peanut acres 
     for a farm, together with the acreage described in paragraph 
     (3), exceeds the actual cropland acreage of the farm, the 
     Secretary shall reduce the quantity of peanut acres for the 
     farm or contract acreage for 1 or more covered commodities 
     for the farm as necessary so that the total of the peanut 
     acres and acreage described in paragraph (3) does not exceed 
     the actual cropland acreage of the farm.
       ``(2) Selection of acres.--The Secretary shall give the 
     peanut producers on the farm the opportunity to select the 
     peanut acres or contract acreage against which the reduction 
     will be made.
       ``(3) Other acreage.--For purposes of paragraph (1), the 
     Secretary shall include--
       ``(A) any contract acreage for the farm under subtitle B;
       ``(B) any acreage on the farm enrolled in the conservation 
     reserve program or wetlands reserve program under chapter 1 
     of subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3830 et seq.); and
       ``(C) any other acreage on the farm enrolled in a 
     conservation program for which payments are made in exchange 
     for not producing an agricultural commodity on the acreage.
       ``(3) Double-cropped acreage.--In applying paragraph (1), 
     the Secretary shall take into account additional acreage as a 
     result of an established double-cropping history on a farm, 
     as determined by the Secretary.

     ``SEC. 158C. DIRECT PAYMENTS FOR PEANUTS.

       ``(a) In General.--For each of the 2002 through 2006 fiscal 
     years, the Secretary shall make direct payments to peanut 
     producers on a farm with peanut acres under section 158B and 
     a payment yield for peanuts under section 158B.
       ``(b) Payment Rate.--The payment rate used to make direct 
     payments with respect to peanuts for a fiscal year shall be 
     equal to $0.018 per pound.
       ``(c) Payment Amount.--The amount of the direct payment to 
     be paid to the peanut producers on a farm for peanuts for a 
     fiscal year shall be equal to the product obtained by 
     multiplying--
       ``(1) the payment rate specified in subsection (b);
       ``(2) the payment acres on the farm; by
       ``(3) the payment yield for the farm.
       ``(d) Time for Payment.--
       ``(1) In general.--The Secretary shall make direct 
     payments--
       ``(A) in the case of the 2002 fiscal year, during the 
     period beginning December 1, 2001, and ending September 30, 
     2002; and
       ``(B) in the case of each of the 2003 through 2006 fiscal 
     years, not later than September 30 of the fiscal year.
       ``(2) Advance payments.--
       ``(A) In general.--At the option of the peanut producers on 
     a farm, the Secretary shall pay 50 percent of the direct 
     payment for a fiscal year for the producers on the farm on a 
     date selected by the peanut producers on the farm.
       ``(B) Selected date.--The selected date for a fiscal year 
     shall be on or after December 1 of the fiscal year.
       ``(C) Subsequent fiscal years.--The peanut producers on a 
     farm may change the selected date for a subsequent fiscal 
     year by providing advance notice to the Secretary.
       ``(3) Repayment of advance payments.--If any peanut 
     producer on a farm that receives an advance direct payment 
     for a fiscal year

[[Page S12883]]

     ceases to be eligible for a direct payment before the date 
     the direct payment would have been made by the Secretary 
     under paragraph (1), the peanut producer shall be responsible 
     for repaying the Secretary the full amount of the advance 
     payment.

     ``SEC. 158D. COUNTER-CYCLICAL PAYMENTS FOR PEANUTS.

       ``(a) In General.--For each of the 2002 through 2006 crops 
     of peanuts, the Secretary shall make counter-cyclical 
     payments with respect to peanuts if the Secretary determines 
     that the effective price for peanuts is less than the income 
     protection price for peanuts.
       ``(b) Effective Price.--For purposes of subsection (a), the 
     effective price for peanuts is equal to the total of--
       ``(1) the greater of--
       ``(A) the national average market price received by peanut 
     producers during the 12-month marketing year for peanuts, as 
     determined by the Secretary; or
       ``(B) the national average loan rate for a marketing 
     assistance loan for peanuts under section 158G in effect for 
     the 12-month marketing year for peanuts under this chapter; 
     and
       ``(2) the payment rate in effect for peanuts under section 
     158C for the purpose of making direct payments with respect 
     to peanuts.
       ``(c) Income Protection Price.--For purposes of subsection 
     (a), the income protection price for peanuts shall be equal 
     to $520 per ton.
       ``(d) Payment Amount.--The amount of the counter-cyclical 
     payment to be paid to the peanut producers on a farm for a 
     crop year shall be equal to the product obtained by 
     multiplying--
       ``(1) the payment rate specified in subsection (e);
       ``(2) the payment acres on the farm; by
       ``(3) the payment yield for the farm.
       ``(e) Payment Rate.--The payment rate used to make counter-
     cyclical payments with respect to peanuts for a crop year 
     shall be equal to the difference between--
       ``(1) the income protection price for peanuts; and
       ``(2) the effective price determined under subsection (b) 
     for peanuts.
       ``(f) Time for Payments.--
       ``(1) In general.--The Secretary shall make counter-
     cyclical payments to peanut producers on a farm under this 
     section for a crop of peanuts as soon as practicable after 
     determining under subsection (a) that the payments are 
     required for the crop year.
       ``(2) Partial payment.--
       ``(A) In general.--At the option of the Secretary, the 
     peanut producers on a farm may elect to receive up to 40 
     percent of the projected counter-cyclical payment to be made 
     under this section for a crop of peanuts on completion of the 
     first 6 months of the marketing year for the crop, as 
     determined by the Secretary.
       ``(B) Repayment.--The peanut producers on a farm shall 
     repay to the Secretary the amount, if any, by which the 
     payment received by producers on the farm (including any 
     partial payments) exceeds the counter-cyclical payment the 
     producers on the farm are eligible for under this section.

     ``SEC. 158E. PRODUCER AGREEMENTS.

       ``(a) Compliance With Certain Requirements.--
       ``(1) Requirements.--Before the peanut producers on a farm 
     may receive direct payments or counter-cyclical payments with 
     respect to the farm, the peanut producers on the farm shall 
     agree during the fiscal year or crop year, respectively, for 
     which the payments are received, in exchange for the 
     payments--
       ``(A) to comply with applicable highly erodible land 
     conservation requirements under subtitle B of title XII of 
     the Food Security Act of 1985 (16 U.S.C. 3811 et seq.);
       ``(B) to comply with applicable wetland conservation 
     requirements under subtitle C of title XII of that Act (16 
     U.S.C. 3821 et seq.);
       ``(C) to comply with the planting flexibility requirements 
     of section 158F; and
       ``(D) to use a quantity of the land on the farm equal to 
     the peanut acres, for an agricultural or conserving use, and 
     not for a nonagricultural commercial or industrial use, as 
     determined by the Secretary.
       ``(2) Compliance.--The Secretary may promulgate such 
     regulations as the Secretary considers necessary to ensure 
     peanut producer compliance with paragraph (1).
       ``(b) Foreclosure.--
       ``(1) In general.--The Secretary shall not require the 
     peanut producers on a farm to repay a direct payment or 
     counter-cyclical payment if a foreclosure has occurred with 
     respect to the farm and the Secretary determines that 
     forgiving the repayment is appropriate to provide fair and 
     equitable treatment.
       ``(2) Compliance with requirements.--
       ``(A) In general.--This subsection shall not void the 
     responsibilities of the peanut producers on a farm under 
     subsection (a) if the peanut producers on the farm continue 
     or resume operation, or control, of the farm.
       ``(B) Applicable requirements.--On the resumption of 
     operation or control over the farm by the peanut producers on 
     the farm, the requirements of subsection (a) in effect on the 
     date of the foreclosure shall apply.
       ``(c) Transfer or Change of Interest in Farm.--
       ``(1) Termination.--Except as provided in paragraph (5), a 
     transfer of (or change in) the interest of the peanut 
     producers on a farm in peanut acres for which direct payments 
     or counter-cyclical payments are made shall result in the 
     termination of the payments with respect to the peanut acres, 
     unless the transferee or owner of the acreage agrees to 
     assume all obligations under subsection (a).
       ``(2) Effective date.--The termination takes effect on the 
     date of the transfer or change.
       ``(3) Transfer of payment base and yield.--The Secretary 
     shall not impose any restriction on the transfer of the 
     peanut acres or payment yield of a farm as part of a transfer 
     or change described in paragraph (1).
       ``(4) Modification.--At the request of the transferee or 
     owner, the Secretary may modify the requirements of 
     subsection (a) if the modifications are consistent with the 
     purposes of subsection (a), as determined by the Secretary.
       ``(5) Exception.--If a peanut producer entitled to a direct 
     payment or counter-cyclical payment dies, becomes 
     incompetent, or is otherwise unable to receive the payment, 
     the Secretary shall make the payment, in accordance with 
     regulations promulgated by the Secretary.
       ``(d) Acreage Reports.--As a condition on the receipt of 
     any benefits under this chapter, the Secretary shall require 
     the peanut producers on a farm to submit to the Secretary 
     acreage reports for the farm.
       ``(e) Tenants and Sharecroppers.--In carrying out this 
     chapter, the Secretary shall provide adequate safeguards to 
     protect the interests of tenants and sharecroppers.
       ``(f) Sharing of Payments.--The Secretary shall provide for 
     the sharing of direct payments and counter-cyclical payments 
     among the peanut producers on a farm on a fair and equitable 
     basis.

     ``SEC. 158F. PLANTING FLEXIBILITY.

       ``(a) Permitted Crops.--Subject to subsection (b), any 
     commodity or crop may be planted on peanut acres on a farm.
       ``(b) Limitations and Exceptions Regarding Certain 
     Commodities.--
       ``(1) Limitations.--The planting of the following 
     agricultural commodities shall be prohibited on peanut acres:
       ``(A) Fruits.
       ``(B) Vegetables (other than lentils, mung beans, and dry 
     peas).
       ``(C) In the case of the 2003 and subsequent crops of an 
     agricultural commodity, wild rice.
       ``(2) Exceptions.--Paragraph (1) shall not limit the 
     planting of an agricultural commodity specified in paragraph 
     (1)--
       ``(A) in any region in which there is a history of double-
     cropping of peanuts with agricultural commodities specified 
     in paragraph (1), as determined by the Secretary, in which 
     case the double-cropping shall be permitted;
       ``(B) on a farm that the Secretary determines has a history 
     of planting agricultural commodities specified in paragraph 
     (1) on peanut acres, except that direct payments and counter-
     cyclical payments shall be reduced by an acre for each acre 
     planted to the agricultural commodity; or
       ``(C) by the peanut producers on a farm that the Secretary 
     determines has an established planting history of a specific 
     agricultural commodity specified in paragraph (1), except 
     that--
       ``(i) the quantity planted may not exceed the average 
     annual planting history of the agricultural commodity by the 
     peanut producers on the farm during the 1996 through 2001 
     crop years (excluding any crop year in which no plantings 
     were made), as determined by the Secretary; and
       ``(ii) direct payments and counter-cyclical payments shall 
     be reduced by an acre for each acre planted to the 
     agricultural commodity.

     ``SEC. 158G. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY 
                   PAYMENTS FOR PEANUTS.

       ``(a) Nonrecourse Loans Available.--
       ``(1) Availability.--For each of the 2002 through 2006 
     crops of peanuts, the Secretary shall make available to 
     peanut producers on a farm nonrecourse marketing assistance 
     loans for peanuts produced on the farm.
       ``(2) Terms and conditions.--The loans shall be made under 
     terms and conditions that are prescribed by the Secretary and 
     at the loan rate established under subsection (b).
       ``(3) Eligible production.--The producers on a farm shall 
     be eligible for a marketing assistance loan under this 
     section for any quantity of peanuts produced on the farm.
       ``(4) Treatment of certain commingled commodities.--In 
     carrying out this section, the Secretary shall make loans to 
     peanut producers on a farm that would be eligible to obtain a 
     marketing assistance loan but for the fact the peanuts owned 
     by the peanut producers on the farm are commingled with other 
     peanuts of other producers in facilities unlicensed for the 
     storage of agricultural commodities by the Secretary or a 
     State licensing authority, if the peanut producers on a farm 
     obtaining the loan agree to immediately redeem the loan 
     collateral in accordance with section 158E.
       ``(5) Options for obtaining loan.--A marketing assistance 
     loan under this subsection, and loan deficiency payments 
     under subsection (e), may be obtained at the option of the 
     peanut producers on a farm through--
       ``(A) a designated marketing association of peanut 
     producers that is approved by the Secretary;
       ``(B) the Farm Service Agency; or
       ``(C) a loan servicing agent approved by the Secretary.
       ``(b) Loan Rate.--The loan rate for a marketing assistance 
     loan for peanuts under subsection (a) shall be equal to $400 
     per ton.

[[Page S12884]]

       ``(c) Term of Loan.--
       ``(1) In general.--A marketing assistance loan for peanuts 
     under subsection (a) shall have a term of 9 months beginning 
     on the first day of the first month after the month in which 
     the loan is made.
       ``(2) Extensions prohibited.--The Secretary may not extend 
     the term of a marketing assistance loan for peanuts under 
     subsection (a).
       ``(d) Repayment Rate.--The Secretary shall permit peanut 
     producers on a farm to repay a marketing assistance loan for 
     peanuts under subsection (a) at a rate that is the lesser 
     of--
       ``(1) the loan rate established for peanuts under 
     subsection (b), plus interest (as determined by the 
     Secretary); or
       ``(2) a rate that the Secretary determines will--
       ``(A) minimize potential loan forfeitures;
       ``(B) minimize the accumulation of stocks of peanuts by the 
     Federal Government;
       ``(C) minimize the cost incurred by the Federal Government 
     in storing peanuts; and
       ``(D) allow peanuts produced in the United States to be 
     marketed freely and competitively, both domestically and 
     internationally.
       ``(e) Loan Deficiency Payments.--
       ``(1) Availability.--The Secretary may make loan deficiency 
     payments available to the peanut producers on a farm that, 
     although eligible to obtain a marketing assistance loan for 
     peanuts under subsection (a), agree to forgo obtaining the 
     loan for the peanuts in return for payments under this 
     subsection.
       ``(2) Amount.--A loan deficiency payment under this 
     subsection shall be obtained by multiplying--
       ``(A) the loan payment rate determined under paragraph (3) 
     for peanuts; by
       ``(B) the quantity of the peanuts produced by the peanut 
     producers on the farm, excluding any quantity for which the 
     producers on the farm obtain a loan under subsection (a).
       ``(3) Loan payment rate.--For purposes of this subsection, 
     the loan payment rate shall be the amount by which--
       ``(A) the loan rate established under subsection (b); 
     exceeds
       ``(B) the rate at which a loan may be repaid under 
     subsection (d).
       ``(4) Time for payment.--The Secretary shall make a payment 
     under this subsection to the peanut producers on a farm with 
     respect to a quantity of peanuts as of the earlier of--
       ``(A) the date on which the peanut producers on the farm 
     marketed or otherwise lost beneficial interest in the 
     peanuts, as determined by the Secretary; or
       ``(B) the date the peanut producers on the farm request the 
     payment.
       ``(f) Compliance With Conservation Requirements.--As a 
     condition of the receipt of a marketing assistance loan under 
     subsection (a), the peanut producers on a farm shall comply 
     during the term of the loan with--
       ``(1) applicable highly erodible land conservation 
     requirements under subtitle B of title XII of the Food 
     Security Act of 1985 (16 U.S.C. 3811 et seq.); and
       ``(2) applicable wetland conservation requirements under 
     subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.).
       ``(g) Reimbursable Agreements and Payment of Expenses.--To 
     the maximum extent practicable, the Secretary shall implement 
     any reimbursable agreements or provide for the payment of 
     expenses under this chapter in a manner that is consistent 
     with the implementation of the agreements or payment of the 
     expenses for other commodities.

     ``SEC. 158H. QUALITY IMPROVEMENT.

       ``(a) Official Inspection.--
       ``(1) Mandatory inspection.--All peanuts placed under a 
     marketing assistance loan under section 158G shall be 
     officially inspected and graded by a Federal or State 
     inspector.
       ``(2) Optional inspection.--Peanuts not placed under a 
     marketing assistance loan may be graded at the option of the 
     peanut producers on a farm.
       ``(b) Termination of Peanut Administrative Committee.--The 
     Peanut Administrative Committee established under Marketing 
     Agreement No. 1436, which regulates the quality of 
     domestically produced peanuts under the Agricultural 
     Adjustment Act (7 U.S.C. 601 et seq.), reenacted with 
     amendments by the Agricultural Marketing Agreement Act of 
     1937, is terminated.
       ``(c) Establishment of Peanut Standards Board.--
       ``(1) In general.--The Secretary shall establish a Peanut 
     Standards Board for the purpose of assisting in the 
     establishment of quality standards with respect to peanuts.
       ``(2) Composition.--The Secretary shall appoint members to 
     the Board that, to the maximum extent practicable, reflect 
     all regions and segments of the peanut industry.
       ``(3) Duties.--The Board shall assist the Secretary in 
     establishing quality standards for peanuts.
       ``(d) Crops.--This section shall apply beginning with the 
     2002 crop of peanuts.''.
       (b) Conforming Amendments.--
       (1) The chapter heading of chapter 2 of subtitle D of the 
     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. prec. 7271) is amended by striking ``PEANUTS AND''.
       (2) Section 155 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7271) is repealed.

     SEC. 152. TERMINATION OF MARKETING QUOTAS FOR PEANUTS AND 
                   COMPENSATION TO PEANUT QUOTA HOLDERS.

       (a) Repeal of Marketing Quotas for Peanuts.--Effective 
     beginning with the 2002 crop of peanuts, part VI of subtitle 
     B of title III of the Agricultural Adjustment Act of 1938 (7 
     U.S.C. 1357 et seq.) is repealed.
       (b) Compensation of Quota Holders.--
       (1) Definitions.--In this subsection:
       (A) Peanut quota holder.--
       (i) In general.--The term ``peanut quota holder'' means a 
     person or entity that owns a farm that--

       (I) held a peanut quota established for the farm for the 
     2001 crop of peanuts under part VI of subtitle B of title III 
     of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1357 et 
     seq.) (as in effect before the amendment made by subsection 
     (a));
       (II) if there was not such a quota established for the farm 
     for the 2001 crop of peanuts, would be eligible to have such 
     a quota established for the farm for the 2002 crop of 
     peanuts, in the absence of the amendment made by subsection 
     (a); or
       (III) is otherwise a farm that was eligible for such a 
     quota as of the effective date of the amendments made by this 
     section.

       (ii) Seed or experimental purposes.--The Secretary shall 
     apply the definition of ``peanut quota holder'' without 
     regard to temporary leases, transfers, or quotas for seed or 
     experimental purposes.
       (B) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (2) Contracts.--The Secretary shall offer to enter into a 
     contract with peanut quota holders for the purpose of 
     providing compensation for the lost value of quota as a 
     result of the repeal of the marketing quota program for 
     peanuts under the amendment made by subsection (a).
       (3) Payment period.--Under a contract, the Secretary shall 
     make payments to an eligible peanut quota holder for each of 
     fiscal years 2002 through 2006.
       (4) Time for payment.--The payments required under the 
     contracts shall be provided in 5 equal installments not later 
     than September 30 of each of fiscal years 2002 through 2006.
       (5) Payment amount.--The amount of the payment for a fiscal 
     year to a peanut quota holder under a contract shall be equal 
     to the product obtained by multiplying--
       (A) $0.10 per pound; by
       (B) the actual farm poundage quota (excluding any quantity 
     for seed and experimental peanuts) established for the farm 
     of a peanut quota holder under section 358-1(b) of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(b)) (as 
     in effect prior to the amendment made by subsection (a)) for 
     the 2001 marketing year.
       (6) Assignment of payments.--
       (A) In general.--The provisions of section 8(g) of the Soil 
     Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), 
     relating to assignment of payments, shall apply to the 
     payments made to peanut quota holders under the contracts.
       (B) Notice.--The peanut quota holder making the assignment, 
     or the assignee, shall provide the Secretary with notice, in 
     such manner as the Secretary may require, of any assignment 
     made under this subsection.
       (c) Conforming Amendments.--
       (1) Administrative provisions.--Section 361 of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1361) is 
     amended by striking ``peanuts,''.
       (2) Adjustment of quotas.--Section 371 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1371) is amended--
       (A) in the first sentence of subsection (a), by striking 
     ``peanuts,''; and
       (B) in the first sentence of subsection (b), by striking 
     ``peanuts''.
       (3) Reports and records.--Section 373 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1373) is amended--
       (A) in the first sentence of subsection (a)--
       (i) by striking ``peanuts,'' each place it appears;
       (ii) by inserting ``and'' after ``from producers,''; and
       (iii) by striking ``for producers, all'' and all that 
     follows through the period at the end of the sentence and 
     inserting ``for producers.''; and
       (B) in subsection (b), by striking ``peanuts,''.
       (4) Eminent domain.--Section 378(c) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1378(c)) is amended in the 
     first sentence--
       (A) by striking ``cotton,'' and inserting ``cotton and''; 
     and
       (B) by striking ``and peanuts,''.
       (d) Crops.--This section and the amendments made by this 
     section apply beginning with the 2002 crop of peanuts.

                       Subtitle D--Administration

     SEC. 161. ADJUSTMENT AUTHORITY RELATED TO URUGUAY ROUND 
                   COMPLIANCE.

       Section 161 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7281) is amended by adding at 
     the end the following:
       ``(e) Adjustment Authority Related to Uruguay Round 
     Compliance.--If the Secretary determines that expenditures 
     under subtitles A through D that are subject to the total 
     allowable domestic support levels under the Uruguay Round 
     Agreements (as defined in section 2 of the Uruguay Round 
     Agreements Act (19 U.S.C. 3501)), as in effect on the date of 
     enactment of this subsection, will exceed the allowable 
     levels for any applicable reporting period, the Secretary may 
     make adjustments in the amount of the expenditures to ensure 
     that the expenditures do not exceed, but are not less than, 
     the allowable levels.''.

[[Page S12885]]

     SEC. 162. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

       Section 171 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7301) is amended--
       (1) by striking ``2002'' each place it appears and 
     inserting ``2006''; and
       (2) in subsection (a)(1)--
       (A) by striking subparagraph (E); and
       (B) by redesignating subparagraphs (F) through (I) as 
     subparagraphs (E) through (H), respectively.

     SEC. 163. COMMODITY PURCHASES.

       Section 191 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7331 et seq.) is amended to read 
     as follows:

     ``SEC. 191. COMMODITY PURCHASES.

       ``(a) In General.--To purchase agricultural commodities 
     under this section, the Secretary shall use funds of the 
     Commodity Credit Corporation in an amount equal to--
       ``(1) for each of fiscal years 2002 and 2003, $130,000,000, 
     of which not less than $100,000,000 shall be used for the 
     purchase of specialty crops;
       ``(2) for fiscal year 2004, $150,000,000, of which not less 
     than $120,000,000 shall be used for the purchase of specialty 
     crops;
       ``(3) for fiscal year 2005, $170,000,000, of which not less 
     than $140,000,000 shall be used for the purchase of specialty 
     crops;
       ``(4) for fiscal year 2006, $200,000,000, of which not less 
     than $170,000,000 shall be used for the purchase of specialty 
     crops; and
       ``(5) for fiscal year 2007, $0.
       ``(b) Other Purchases.--The Secretary shall ensure that 
     purchases of agricultural commodities under this section are 
     in addition to purchases by the Secretary under any other 
     law.
       ``(c) Purchases by Department of Defense for School Lunch 
     Program.--The Secretary shall provide not less than 
     $50,000,000 for each fiscal year of the funds made available 
     under subsection (a) to the Secretary of Defense to purchase 
     fresh fruits and vegetables for distribution to schools and 
     service institutions in accordance with section 6(a) of the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 
     1755(a)) in a manner prescribed by the Secretary of 
     Agriculture.
       ``(d) Purchases for Emergency Food Assistance Program.--The 
     Secretary shall use not less than $40,000,000 for each fiscal 
     year of the funds made available under subsection (a) to 
     purchase agricultural commodities for distribution under the 
     Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 et 
     seq.).''.

     SEC. 164. HARD WHITE WHEAT INCENTIVE PAYMENTS.

       Section 193 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 1508) is amended to read as 
     follows:

     ``SEC. 193. HARD WHITE WHEAT INCENTIVE PAYMENTS.

       ``(a) In General.--For the period of crop years 2003 
     through 2005, the Secretary shall use $40,000,000 of funds of 
     the Commodity Credit Corporation to provide incentive 
     payments to producers of hard white wheat to ensure that hard 
     white wheat, produced on a total of not more than 2,000,000 
     acres, meets minimum quality standards established by the 
     Secretary.
       ``(b) Application.--The amounts payable to producers in the 
     form of payments under this section shall be determined 
     through the submission of bids by producers in such manner as 
     the Secretary may prescribe.
       ``(c) Demand for Wheat.--To be eligible to obtain a payment 
     under this section, a producer shall demonstrate to the 
     Secretary the availability of buyers and end-users for the 
     wheat that is the covered by the payment.''.

     SEC. 165. PAYMENT LIMITATIONS.

       Section 1001 of the Food Security Act of 1985 (7 U.S.C. 
     1308) is amended by striking paragraphs (1) through (4) and 
     inserting the following:
       ``(1) Limitation on direct and counter-cyclical payments.--
     The total amount of direct payments and counter-cyclical 
     payments to a person during any fiscal year may not exceed 
     $100,000, with a separate limitation for--
       ``(A) all contract commodities; and
       ``(B) peanuts.
       ``(2) Limitation on marketing loan gains and loan 
     deficiency payments.--The total amount of the payments 
     specified in paragraph (3) that a person shall be entitled to 
     receive under title I of the Federal Agriculture Improvement 
     and Reform Act of 1996 (7 U.S.C. 7201 et seq.) for 1 or more 
     loan commodities during any crop year may not exceed 
     $150,000, with a separate limitation for--
       ``(A) all contract commodities;
       ``(B) wool and mohair;
       ``(C) honey; and
       ``(D) peanuts.
       ``(3) Description of payments subject to limitation.--The 
     payments referred to in paragraph (2) are the following:
       ``(A) Any gain realized by a producer from repaying a 
     marketing assistance loan under section 131 or 158G(a) of the 
     Federal Agriculture Improvement and Reform Act of 1996 for a 
     crop of any loan commodity or peanuts, respectively, at a 
     lower level than the original loan rate established for the 
     loan commodity or peanuts under section 132 or 158G(d) of 
     that Act, respectively.
       ``(B) Any loan deficiency payment received for a loan 
     commodity or peanuts under section 135 or 158G(e) of that 
     Act, respectively.
       ``(4) Definitions.--In paragraphs (1) through (3):
       ``(A) Contract commodity.--The term `contract commodity' 
     has the meaning given the term in section 102 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7202).
       ``(B) Counter-cyclical payment.--The term `counter-cyclical 
     payment'' means a payment made under section 114 or 158D of 
     that Act.
       ``(C) Direct payment.--The term `direct payment' means a 
     payment made under section 113 or 158C of that Act.
       ``(D) Loan commodity.--The term `loan commodity' has the 
     meaning given the term in section 102 of that Act.''.

                         TITLE II--CONSERVATION

                   Subtitle A--Conservation Security

     SEC. 201. CONSERVATION SECURITY PROGRAM.

       Subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3830 et seq.) is amended by inserting after 
     chapter 1 the following:

       ``CHAPTER 2--CONSERVATION SECURITY AND FARMLAND PROTECTION

             ``Subchapter A--Conservation Security Program

     ``SEC. 1238. DEFINITIONS.

       ``In this subchapter:
       ``(1) Base payment.--The term `base payment' means the 
     amount paid to an producer under a conservation security 
     contract that is equal to the total of the amounts described 
     in clauses (i) and (ii) of subparagraphs (C), (D), or (E) of 
     section 1238C(b)(1), as appropriate.
       ``(2) Beginning farmer or rancher.--The term `beginning 
     farmer or rancher' has the meaning provided under section 
     343(a) of the Consolidated Farm and Rural Development Act (7 
     U.S.C. 1999(a)).
       ``(3) Bonus amount.--The term `bonus amount' means the 
     amount paid to a producer under a conservation security 
     contract that is equal to the total of the amounts described 
     in clauses (iii) and (iv) of subparagraph (C), and of clause 
     (iii) of subparagraph (D) or (E), of section 1238C(b)(1), as 
     appropriate.
       ``(4) Conservation practice.--The term `conservation 
     practice' means a land-based farming technique that--
       ``(A) requires planning, implementation, management, and 
     maintenance; and
       ``(B) promotes 1 or more of the purposes described in 
     section 1238A(a).
       ``(5) Conservation security contract.--The term 
     `conservation security contract' means a contract described 
     in section 1238A(e).
       ``(6) Conservation security plan.--The term `conservation 
     security plan' means a plan described in section 1238A(c).
       ``(7) Conservation security program.--The term 
     `conservation security program' means the program established 
     under section 1238A(a).
       ``(8) Continuous signup.--The term `continuous signup', 
     with respect to land, means land enrolled in a program 
     described in section 1231(b)(6)(A) on which conservation 
     practices are carried out.
       ``(9) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(10) Nutrient management.--The term `nutrient management' 
     means management of the quantity, source, placement, form, 
     and timing of the land application of nutrients and other 
     additions to soil on land enrolled in the conservation 
     security program--
       ``(A) to achieve or maintain adequate soil fertility for 
     agricultural production;
       ``(B) to minimize the potential for loss of environmental 
     quality, including soil, water, fish and wildlife habitat, 
     and air and water quality; or
       ``(C) to reduce energy consumption.
       ``(11) Producer.--
       ``(A) In general.--The term `producer' means an owner, 
     operator, landlord, tenant, or sharecropper that--
       ``(i) shares in the risk of producing any crop or 
     livestock; and
       ``(ii) is entitled to share in the crop or livestock 
     available for marketing from a farm (or would have shared had 
     the crop or livestock been produced).
       ``(B) Hybrid seed growers.--In determining whether a grower 
     of hybrid seed is a producer, the Secretary shall not take 
     into consideration the existence of a hybrid seed contract.
       ``(12) Resource of concern.--The term `resource of concern' 
     means a conservation priority of a State and locality under 
     section 1238A(c)(3).
       ``(13) Resource-conserving crop.--The term `resource-
     conserving crop' means--
       ``(A) a perennial grass;
       ``(B) a legume grown for use as--
       ``(i) forage;
       ``(ii) seed for planting; or
       ``(iii) green manure;
       ``(C) a legume-grass mixture;
       ``(D) a small grain grown in combination with a grass or 
     legume, whether interseeded or planted in succession; and
       ``(E) such other plantings, including trees and annual 
     grasses, as the Secretary considers appropriate for a 
     particular area.
       ``(14) Resource-conserving crop rotation.--The term 
     `resource-conserving crop rotation' means a crop rotation 
     that--
       ``(A) includes at least 1 resource-conserving crop;
       ``(B) reduces erosion;
       ``(C) improves soil fertility and tilth; and
       ``(D) interrupts pest cycles.
       ``(15) Resource management system.--The term `resource 
     management system' means a

[[Page S12886]]

     system of conservation practices and management relating to 
     land or water use that is designed to prevent resource 
     degradation and permit sustained use of land and water, as 
     defined in accordance with the technical guide of the Natural 
     Resources Conservation Service.
       ``(16) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture, acting through the Natural Resources 
     Conservation Service.
       ``(17) Tier i conservation practice.--The term `Tier I 
     conservation practice' means a conservation practice 
     described in section 1238A(d)(4)(A)(ii).
       ``(18) Tier i conservation security contract.--The term 
     `Tier I conservation security contract' means a contract 
     described in section 1238A(d)(4)(A).
       ``(19) Tier ii conservation practice.--The term `Tier II 
     conservation practice' means a conservation practice 
     described in section 1238A(d)(4)(B)(ii).
       ``(20) Tier ii conservation security contract.--The term 
     `Tier II conservation security contract' means a contract 
     described in section 1238A(d)(4)(B).
       ``(21) Tier iii conservation practice.--The term `Tier III 
     conservation practice' means a conservation practice 
     described in section 1238A(d)(4)(C)(ii).
       ``(22) Tier iii conservation security contract.--The term 
     `Tier III conservation security contract' means a contract 
     described in section 1238A(d)(4)(C).

     ``SEC. 1238A. CONSERVATION SECURITY PROGRAM.

       ``(a) In General.--For each of fiscal years 2003 through 
     2006, the Secretary shall establish a conservation security 
     program to assist owners and operators of agricultural 
     operations to promote, as is applicable for each operation--
       ``(1) conservation of soil, water, energy, and other 
     related resources;
       ``(2) soil quality protection and improvement;
       ``(3) water quality protection and improvement;
       ``(4) air quality protection and improvement;
       ``(5) soil, plant, or animal health and well-being;
       ``(6) diversity of flora and fauna;
       ``(7) on-farm conservation and regeneration of biological 
     resources, including plant and animal germplasm;
       ``(8) wetland restoration, conservation, and enhancement;
       ``(9) wildlife habitat management, with special emphasis on 
     species identified by any natural heritage program of the 
     applicable State;
       ``(10) reduction of greenhouse gas emissions and 
     enhancement of carbon sequestration;
       ``(11) environmentally sound management of invasive 
     species; or
       ``(12) any similar conservation purpose (as determined by 
     the Secretary).
       ``(b) Eligibility.--
       ``(1) Eligible owners and operators.--To be eligible to 
     participate in the conservation security program (other than 
     to receive technical assistance under section 1238C(g) for 
     the development of conservation security contracts), a 
     producer shall--
       ``(A) develop and submit to the Secretary, and obtain the 
     approval of the Secretary of, a conservation security plan 
     that meets the requirements of subsection (c)(1); and
       ``(B) enter into a conservation security contract with the 
     Secretary to carry out the conservation security plan.
       ``(2) Eligible land.--
       ``(A) In general.--Except as provided in subparagraph 
     (C)(iii), private agricultural land (including cropland, 
     grassland, prairie land, pasture land, and rangeland) and 
     land under the jurisdiction of an Indian tribe shall be 
     eligible for enrollment in the conservation security program.
       ``(B) Forested land.--Private forested land shall be 
     eligible for enrollment in the conservation security program 
     if the forested land is part of the agricultural land 
     described in subparagraph (A), including land that is used 
     for--
       ``(i) alley cropping;
       ``(ii) forest farming;
       ``(iii) forest buffers;
       ``(iv) windbreaks;
       ``(v) silvopasture systems; and
       ``(vi) such other integrated agroforestry uses as the 
     Secretary may determine to be appropriate.
       ``(C) Exclusions.--
       ``(i) Conservation reserve program.--Land enrolled in the 
     conservation reserve program under subchapter B of chapter 1 
     shall not be eligible for enrollment in the conservation 
     security program except for land described in section 
     1231(b)(6).
       ``(ii) Wetlands reserve program.--Land enrolled in the 
     wetlands reserve program established under subchapter C of 
     chapter 1 shall not be eligible for enrollment in the 
     conservation security program.
       ``(iii) Conversion to cropland.--Land that is used for crop 
     production after the date of enactment of this subchapter 
     that had not been in crop production for at least 3 of the 10 
     years preceding that date (except for land enrolled in the 
     conservation reserve program under subchapter B of chapter 1) 
     shall not be eligible for enrollment in the conservation 
     security program.
       ``(3) Sustainable economic uses.--The Secretary shall 
     permit a producer to implement, with respect to eligible land 
     covered by a conservation security plan, sustainable economic 
     uses (including Tier II conservation practices) that--
       ``(A) maintain the agricultural nature of the land; and
       ``(B) are consistent with the natural resource and 
     environmental benefits of the conservation security plan.
       ``(c) Conservation Security Plans.--
       ``(1) In general.--A conservation security plan shall--
       ``(A) identify the resources and designated land to be 
     conserved under the conservation security plan;
       ``(B) describe--
       ``(i) the tier of conservation security contracts, and the 
     particular conservation practices, to be implemented, 
     maintained, or improved, in accordance with subsection (d) on 
     the land covered by the conservation security contract for 
     the specified term; and
       ``(ii) as appropriate for the land covered by the 
     conservation security contract, at least, the minimum number 
     and scope of conservation practices described in clause (i) 
     that are required to be carried out on the land before the 
     producer is eligible to receive--

       ``(I) a base payment; and
       ``(II) a bonus amount;

       ``(C) contain a schedule for the implementation, 
     maintenance, or improvement of the conservation practices 
     described in the conservation security plan during the term 
     of the conservation security contract;
       ``(D) meet the highly erodible land and wetland 
     conservation requirements of subtitles B and C; and
       ``(E) identify, and authorize the implementation of, 
     sustainable economic uses described in subsection (b)(3).
       ``(2) Comprehensive planning.--The Secretary shall 
     encourage owners and operators that enter into conservation 
     security contracts--
       ``(A) to undertake a comprehensive examination of the 
     opportunities for conserving natural resources and improving 
     the profitability, environmental health, and quality of life 
     in relation to their entire agricultural operation;
       ``(B) to develop a long-term strategy for implementing, 
     monitoring, and evaluating conservation practices and 
     environmental results in the entire agricultural operation;
       ``(C) to participate in other Federal, State, local, or 
     private conservation programs;
       ``(D) to maintain the agricultural integrity of the land; 
     and
       ``(E) to adopt innovative conservation technologies and 
     management practices.
       ``(3) State and local conservation priorities.--
       ``(A) In general.--To the maximum extent practicable and in 
     a manner consistent with the conservation security program, 
     each conservation security plan shall address, at least, the 
     conservation priorities of the State and locality in which 
     the agricultural operation is located.
       ``(B) Administration.--The conservation priorities of the 
     State and locality in which the agricultural operation is 
     located shall be--
       ``(i) determined by the State conservationist, in 
     consultation with the State technical committee established 
     under subtitle G and the local subcommittee of the State 
     technical committee; and
       ``(ii) approved by the Secretary.
       ``(4) Submission of plan.--
       ``(A) In general.--During the development of a conservation 
     security plan by a producer, at the request of the producer, 
     the Secretary shall supply to the producer a statement of the 
     minimum number, type, and scope of conservation practices 
     described in paragraph (1)(B)(ii).
       ``(B) Approval for base payments.--If a conservation 
     security plan submitted to the Secretary contains, at least, 
     the conservation practices referred to in paragraph 
     (1)(B)(ii)--
       ``(i) the Secretary shall approve the conservation security 
     plan; and
       ``(ii) the producer of the conservation security plan, on 
     approval of and compliance with the plan, as determined by 
     the Secretary, shall be eligible to receive a base payment.
       ``(C) Approval for bonus amounts.--If a conservation 
     security plan submitted to the Secretary contains a proposal 
     for the implementation, maintenance, or improvement of a 
     conservation practice that qualifies for a bonus amount under 
     section 1238C(b)(1)(C)(iii), the Secretary may increase the 
     base payment of the producer by such bonus amount as the 
     Secretary determines is appropriate.
       ``(d) Conservation Contracts and Practices.--
       ``(1) In general.--
       ``(A) Establishment of tiers.--The Secretary shall 
     establish 3 tiers of conservation contracts under which a 
     payment under this subchapter may be received.
       ``(B) Eligible conservation practices.--
       ``(i) In general.--The Secretary shall make eligible for 
     payment under a conservation security contract land 
     management, vegetative, and structural practices that--

       ``(I) are necessary to achieve the purposes of the 
     conservation security plan; and
       ``(II) primarily provide for, and have as a primary 
     purpose, resource protection and environmental improvement.

       ``(ii) Determination.--

       ``(I) In general.--Subject to subclause (II), in 
     determining the eligibility of a practice described in clause 
     (i), the Secretary shall require, to the maximum extent 
     practicable, the lowest cost alternatives be used to fulfill 
     the purposes of the conservation security plan, as determined 
     by the Secretary.

[[Page S12887]]

       ``(II) Innovative technologies.--Subclause (I) shall not 
     apply, to the maximum extent practicable, to the adoption of 
     innovative technologies.

       ``(2) On-farm research and demonstration.--With respect to 
     land enrolled in the conservation security program that will 
     be maintained using a Tier II conservation practice or a Tier 
     III conservation practice, the Secretary may approve a 
     conservation security plan that includes on-farm conservation 
     research and demonstration activities, including--
       ``(A) total farm planning;
       ``(B) total resource management;
       ``(C) integrated farming systems;
       ``(D) germplasm conservation and regeneration;
       ``(E) greenhouse gas reduction and carbon sequestration;
       ``(F) agroecological restoration and wildlife habitat 
     restoration;
       ``(G) agroforestry;
       ``(H) invasive species control;
       ``(I) energy conservation and management;
       ``(J) farm and environmental results monitoring and 
     evaluation; or
       ``(K) participation in research projects relating to water 
     conservation and management through--
       ``(i) recycling or reuse of water; or
       ``(ii) more efficient irrigation of farmland.
       ``(3) Use of handbook and guides.--
       ``(A) In general.--In determining eligible conservation 
     practices under the conservation security program, the 
     Secretary shall use the National Handbook of Conservation 
     Practices of the Natural Resources Conservation Service.
       ``(B) Conservation practice standards.--To the maximum 
     extent practicable, the Secretary shall establish guidance 
     standards for implementation of eligible conservation 
     practices that shall include measurable goals for enhancing 
     and preventing degradation of resources.
       ``(C) Adjustments.--
       ``(i) In general.--After providing notice and an 
     opportunity for public participation, the Secretary shall 
     make such adjustments to the National Handbook of 
     Conservation Practices, and the field office technical 
     guides, of the Natural Resources Conservation Service as are 
     necessary to carry out this chapter.
       ``(ii) Effect on plan.--If the Secretary makes an 
     adjustment to a practice under clause (i), the Secretary may 
     require an adjustment to a conservation security plan in 
     effect as of the date of the adjustment if the Secretary 
     determines that the plan, without the adjustment, would 
     significantly interfere with achieving the purposes of the 
     conservation security program.
       ``(D) Pilot testing.--
       ``(i) In general.--Under any of the 3 tiers of conservation 
     practices established under paragraph (4), the Secretary may 
     approve requests by a producer for pilot testing of new 
     technologies and innovative conservation practices and 
     systems.
       ``(ii) Incorporation into standards.--

       ``(I) In general.--After evaluation by the Secretary and 
     provision of notice and an opportunity for public 
     participation, the Secretary may, as expeditiously as 
     practicable, approve new technologies and innovative 
     conservation practices and systems.
       ``(II) Incorporation.--If the Secretary approves a new 
     technology or innovative conservation practice under 
     subclause (I), the Secretary shall, as expeditiously as 
     practicable, incorporate the technology or practice into the 
     standards for implementation of conservation practices 
     established under paragraph (3).

       ``(4) Tiers.--Subject to paragraph (5), to carry out this 
     subsection, the Secretary shall establish the following 3 
     tiers of conservation contracts:
       ``(A) Tier i conservation contracts.--
       ``(i) In general.--A conservation security plan for land 
     enrolled in the conservation security program under a Tier I 
     conservation security contract shall be maintained using Tier 
     I conservation practices and shall, at a minimum--

       ``(I) if applicable, address at least 1 resource of concern 
     to the particular agricultural operation;
       ``(II) apply to the total agricultural operation or to a 
     particular unit of the agricultural operation;
       ``(III) cover--

       ``(aa) conservation practices that are being implemented as 
     of the date on which the conservation security contract is 
     entered into; and
       ``(bb) conservation practices that are implemented after 
     the date on which the conservation security contract is 
     entered into; and

       ``(IV) meet applicable standards for implementation of 
     conservation practices established under paragraph (3).

       ``(ii) Conservation practices.--Tier I conservation 
     practices shall consist of, as appropriate for the 
     agricultural operation of a producer, 1 or more of the 
     following basic conservation activities:

       ``(I) Nutrient management.
       ``(II) Integrated pest management.
       ``(III) Irrigation, water conservation, and water quality 
     management.
       ``(IV) Grazing pasture and rangeland management.
       ``(V) Soil conservation, quality, and residue management.
       ``(VI) Invasive species management.
       ``(VII) Fish and wildlife habitat management, with special 
     emphasis on species identified by any natural heritage 
     program of the applicable State or the appropriate State 
     agency.
       ``(VIII) Fish and wildlife conservation and enhancement.
       ``(IX) Air quality management.
       ``(X) Energy conservation measures.
       ``(XI) Biological resource conservation and regeneration.
       ``(XII) Animal health management.
       ``(XIII) Plant and animal germplasm conservation, 
     evaluation, and development.
       ``(XIV) Contour farming.
       ``(XV) Strip cropping.
       ``(XVI) Cover cropping.
       ``(XVII) Sediment dams.
       ``(XVIII) Any other conservation practice that the 
     Secretary determines to be appropriate and comparable to 
     other conservation practices described in this clause.

       ``(iii) Tier ii conservation contracts.--A conservation 
     security plan for land enrolled in the conservation security 
     program that will be maintained using Tier I conservation 
     contracts may include Tier II conservation practices.
       ``(B) Tier ii conservation practices.--
       ``(i) In general.--A conservation security plan for land 
     enrolled in the conservation security program under a Tier II 
     conservation security contract shall be maintained using Tier 
     II conservation practices and shall, at a minimum--
       ``(I) as applicable to the particular agricultural 
     operation, address at least I resource of concern;

       ``(II) cover--

       ``(aa) conservation practices that are being implemented as 
     of the date on which the conservation security contract is 
     entered into; and
       ``(bb) conservation practices that are implemented after 
     the date on which the conservation security contract is 
     entered into; and

       ``(III) meet applicable resource management system criteria 
     for 1 or more resources of concern of the agricultural 
     operation, as specified in the conservation security 
     contract.

       ``(ii) Conservation practices.--Tier II conservation 
     practices shall consist of, as appropriate for the 
     agricultural operation of a producer, any of the Tier I 
     conservation practices and 1 or more of the following land 
     use adjustment or protection practices:

       ``(I) Resource-conserving crop rotations.
       ``(II) Controlled, rotational grazing.
       ``(III) Conversion of portions of cropland from a soil-
     depleting use to a soil-conserving use, including production 
     of cover crops.
       ``(IV) Partial field conservation practices (including 
     windbreaks, grass waterways, shelter belts, filter strips, 
     riparian buffers, wetland buffers, contour buffer strips, 
     living snow fences, crosswind trap strips, field borders, 
     grass terraces, wildlife corridors, and critical area 
     planting appropriate to the agricultural operation).
       ``(V) Fish and wildlife habitat conservation and 
     restoration.
       ``(VI) Native grassland and prairie protection and 
     restoration.
       ``(VII) Wetland protection and restoration.
       ``(VIII) Agroforestry practices and systems.
       ``(IX) Any other conservation practice involving 
     modification of the use of land that the Secretary determines 
     to be appropriate and comparable to other conservation 
     practices described in this clause.

       ``(C) Tier iii conservation contracts.--
       ``(i) In general.--A conservation security plan for land 
     enrolled in the conservation security program under a Tier 
     III conservation security contract shall be maintained using 
     Tier III conservation contracts and shall, at a minimum--

       ``(I) address all applicable resources of concern in the 
     total agricultural operation;
       ``(II) cover--

       ``(aa) conservation practices that are being implemented as 
     of the date on which the conservation security contract is 
     entered into; and
       ``(bb) conservation practices that are implemented after 
     the date on which the conservation security contract is 
     entered into; and

       ``(III) meet applicable resource management system criteria 
     for 1 or more resources of concern of the agricultural 
     operation, as specified in the conservation security 
     contract.

       ``(ii) Conservation practices.--Tier III conservation 
     practices shall consist of, as appropriate for the 
     agricultural operation of a producer (in addition to 
     appropriate Tier I conservation practices and Tier II 
     conservation practices), development, implementation, and 
     maintenance of a conservation security plan that, over the 
     term of the conservation security contract--

       ``(I) integrates all necessary conservation practices to 
     foster environmental enhancement and the long-term 
     sustainability of the natural resource base of an 
     agricultural operation; and
       ``(II) improves profitability and sustainability associated 
     with the agricultural operation.

       ``(5) Minimum requirements.--The minimum requirements for 
     each tier of conservation practices described in paragraph 
     (4) shall be--
       ``(i) determined by the State conservationist, in 
     consultation with the State technical committee established 
     under subtitle G and the local subcommittee of the State 
     technical committee; and
       ``(ii) approved by the Secretary.
       ``(e) Conservation Security Contracts.--
       ``(1) Contracts.--

[[Page S12888]]

       ``(A) In general.--On approval of a conservation security 
     plan of a producer, the Secretary shall enter into a 
     conservation security contract with the producer to enroll 
     the land covered by the conservation security plan in the 
     conservation security program.
       ``(B) Required components.--A conservation security 
     contract shall specifically describe the practices that are 
     required under subsection (c)(1)(B).
       ``(2) Term.--Subject to paragraphs (3) and (4)--
       ``(A) a conservation security contract for land enrolled in 
     the conservation security program of a producer that will be 
     maintained using 1 or more Tier I conservation contracts 
     shall have a term of 5 years; and
       ``(B) a conservation security contract for land enrolled in 
     the conservation security program that will be maintained 
     using a Tier II conservation contract or Tier III 
     conservation contract shall have a 5-year to 10-year term, as 
     determined by the producer.
       ``(3) Modifications.--
       ``(A) Optional modifications.--
       ``(i) In general.--An owner or operator may apply to the 
     Secretary to modify the conservation security plan to 
     effectuate the purposes of the conservation security program.
       ``(ii) Approval by the secretary.--To be effective, any 
     modification under clause (i)--

       ``(I) shall be approved by the Secretary; and
       ``(II) shall authorize the Secretary to redetermine, if 
     necessary, the amount and timing of the payments under the 
     conservation security contract and subsections (a) and (b) of 
     section 1238C.

       ``(B) Other modifications.--
       ``(i) In general.--The Secretary may, in writing, require a 
     producer to modify a conservation security contract before 
     the expiration of the conservation security contract if--

       ``(I) the Secretary determines that a change made to the 
     type, size, management, or other aspect of the agricultural 
     operation of the producer would, without the modification of 
     the contract, significantly interfere with achieving the 
     purposes of the conservation security program; or
       ``(II) the Secretary makes a change to the National 
     Handbook of Conservation Practices of the Natural Resource 
     Conservation Service under subsection (d)(3)(C).

       ``(ii) Payments.--The Secretary may adjust the amount and 
     timing of the payment schedule under the conservation 
     security contract to reflect any modifications made under 
     this subparagraph.
       ``(iii) Deadline.--The Secretary may terminate a 
     conservation security contract if a modification required 
     under this subparagraph is not submitted to the Secretary in 
     the form of an amended conservation security contract by the 
     date that is 90 days after the date on which the Secretary 
     issues a written request for the modification.
       ``(iv) Termination.--a producer that is required to modify 
     a conservation security contract under this subparagraph may, 
     in lieu of modifying the contract--

       ``(I) terminate the conservation security contract; and
       ``(II) retain payments received under the conservation 
     security contract, if the producer fully complied with the 
     terms and conditions of the conservation security contract 
     before termination of the contract.

       ``(4) Renewal.--
       ``(A) In general.--At the option of a producer, the 
     conservation security contract of the producer may be 
     renewed, for a term described in subparagraph (B), if--
       ``(i) the producer agrees to any modification of the 
     applicable conservation security contract that the Secretary 
     determines to be necessary to achieve the purposes of the 
     conservation security program;
       ``(ii) the Secretary determines that the producer has 
     complied with the terms and conditions of the conservation 
     security contract, including the conservation security plan; 
     and
       ``(iii) in the case of a Tier I conservation security 
     contract, the producer agrees to increase the conservation 
     practices on land enrolled in the conservation security 
     program by--

       ``(I) adopting new conservation practices; or
       ``(II) expanding existing practices to meet the resource 
     management systems criteria.

       ``(B) Terms of renewal.--Under subparagraph (A)--
       ``(i) a conservation security contract for land enrolled in 
     the conservation security program that will be maintained 
     using Tier I conservation contracts may be renewed for 5-year 
     terms;
       ``(ii) in the case of a Tier II conservation security 
     contract or a Tier III conservation security contract, the 
     contract shall be renewed for 5-year to 10-year terms, at the 
     option of the producer; and
       ``(iii) participation in the conservation security program 
     prior to the renewal of the conservation security contract 
     shall not bar renewal more than once.
       ``(f) Noncompliance Due to Circumstances Beyond the Control 
     of Producers.--The Secretary shall include in the 
     conservation security contract a provision, and may modify a 
     conservation security contract under subsection (e)(3)(B), to 
     ensure that a producer shall not be considered in violation 
     of a conservation security contract for failure to comply 
     with the conservation security contract due to circumstances 
     beyond the control of the producer, including a disaster or 
     related condition, as determined by the Secretary.

     ``SEC. 1238B. DUTIES OF PRODUCERS.

       ``Under a conservation security contract, a producer shall 
     agree, during the term of the conservation security 
     contract--
       ``(1) to implement the applicable conservation security 
     plan approved by the Secretary;
       ``(2) to maintain, and make available to the Secretary at 
     such times as the Secretary may request, appropriate records 
     showing the effective and timely implementation of the 
     conservation security plan;
       ``(3) not to engage in any activity that would interfere 
     with the purposes of the conservation security plan; and
       ``(4) on the violation of a term or condition of the 
     conservation security contract--
       ``(A) if the Secretary determines that the violation 
     warrants termination of the conservation security contract--
       ``(i) to forfeit all rights to receive payments under the 
     conservation security contract; and
       ``(ii) to refund to the Secretary all or a portion of the 
     payments received by the producer under the conservation 
     security contract, including any advance payment and interest 
     on the payments, as determined by the Secretary; or
       ``(B) if the Secretary determines that the violation does 
     not warrant termination of the conservation security 
     contract, to refund to the Secretary, or accept adjustments 
     to, the payments provided to the producer, as the Secretary 
     determines to be appropriate.

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

       ``(a) Advance Payment.--At the time at which a producer 
     enters into a conservation security contract, the Secretary 
     shall, at the option of the producer, make an advance payment 
     to the producer in an amount not to exceed--
       ``(1) in the case of a Tier I conservation security 
     contract, the greater of--
       ``(A) $1,000; or
       ``(B) 20 percent of the value of the annual payment under 
     the contract, as determined by the Secretary;
       ``(2) in the case of a Tier II conservation security 
     contract, the greater of--
       ``(A) $2,000; or
       ``(B) 20 percent of the value of the annual payment under 
     the contract, as determined by the Secretary; and
       ``(3) in the case of a Tier III conservation security 
     contract, the greater of--
       ``(A) $3,000; or
       ``(B) 20 percent of the value of the annual payment under 
     the contract, as determined by the Secretary.
       ``(b) Annual Payments.--
       ``(1) Criteria for determining amount of payments.--
       ``(A) Base rate.--In this paragraph, the term `base rate' 
     means the average county rental rate for the specific land 
     use during the 2001 crop year, or another appropriate average 
     county rate for the 2001 crop year, that ensures regional 
     equity, as determined by the Secretary.
       ``(B) Payments.--A payment for a conservation practice 
     under this paragraph shall be determined in accordance with 
     subparagraphs (C) through (F).
       ``(C) Tier i conservation contracts.--The payment for a 
     Tier I conservation security contract shall be comprised of 
     the total of the following amounts:
       ``(i) An amount equal to 6 percent of the base rate for 
     land covered by the contract.
       ``(ii) An amount equal to the following costs of practices 
     covered by the conservation security contract, based on the 
     average county costs for such practices for the 2001 crop 
     year, as determined by the Secretary:

       ``(I) 100 percent of the cost of--

       ``(aa) the adoption of new management practices; and
       ``(bb) the maintenance of new and existing management 
     practices.

       ``(II) 100 percent of the cost of maintenance of existing 
     land-based structural practices approved by the Secretary.
       ``(III)(aa) 75 percent (or, in the case of a limited 
     resource producer (as determined by the Secretary) or a 
     beginning farmer or rancher, 90 percent) of the cost of 
     adoption of new land-based structural practices; or
       ``(bb) 75 percent (or, in the case of a limited resource 
     producer (as determined by the Secretary) or a beginning 
     farmer or rancher, 90 percent) of the cost of the adoption of 
     a structural practice for which a similar structural practice 
     under the environmental quality incentives program 
     established under chapter 4 would require maintenance, if the 
     producer agrees to provide, without reimbursement, 
     substantially equivalent maintenance.

       ``(iii) A bonus amount determined by the Secretary for 
     implementing or adopting 1 or more of the following 
     practices:

       ``(I) A practice adopted or maintained that maximizes the 
     purposes of the conservation security program beyond the 
     minimum requirements of the practices adopted or maintained.
       ``(II) A practice adopted or maintained to address eligible 
     resource and conservation concerns beyond those identified as 
     State or local conservation priorities.
       ``(III) A practice adopted or maintained to address 
     national priority concerns, as determined by the Secretary.
       ``(IV) Participation by the producer in a conservation 
     research, demonstration, or pilot project.
       ``(V) Participation by the producer in a watershed or 
     regional resource conservation

[[Page S12889]]

     plan that involves at least 75 percent of producers in a 
     targeted area.
       ``(VI) Recordkeeping, monitoring, and evaluation carried 
     out by the producer that furthers the purposes of the 
     conservation security program.

       ``(iv) A bonus amount determined by the Secretary that 
     reflects the status of a producer as a beginning farmer or 
     rancher.
       ``(D) Tier ii conservation contracts.--The payment for a 
     Tier II conservation security contract shall be comprised of 
     the total of the following amounts:
       ``(i) An amount equal to 11 percent of the base rate for 
     land covered by the conservation security contract.
       ``(ii) An amount equal to the cost of practices covered by 
     the conservation security contract, based on the average 
     county costs for practices for the 2001 crop year, described 
     in subparagraph (C)(ii).
       ``(iii) A bonus amount determined by the Secretary in 
     accordance with clauses (iii) and (iv) of subparagraph (C), 
     except that the bonus amount under this clause may include 
     any amount for the adoption or maintenance by the producer of 
     any practice that exceeds resource management system 
     standards.
       ``(E) Tier iii conservation contracts.--The payment for a 
     Tier III conservation security contract shall be comprised of 
     the total of the following amounts:
       ``(i) An amount equal to 20 percent of the base rate for 
     land covered by the conservation security contract.
       ``(ii) An amount equal to the cost of practices covered by 
     the conservation security contract, based on the average 
     county costs for practices for the 2001 crop year, described 
     in subparagraph (C)(ii).
       ``(iii) A bonus amount determined by the Secretary in 
     accordance with subparagraph (D)(iii).
       ``(F) Exclusion of costs for purchase or maintenance of 
     equipment or non-land based structures.--A payment under this 
     subchapter shall not include any amount for the purchase or 
     maintenance of equipment or a non-land based structure.
       ``(2) Time of payment.--The Secretary shall provide 
     payments under a conservation security contract as soon as 
     practicable after October 1 of each fiscal year.
       ``(3) Limitation on payments.--
       ``(A) In general.--Subject to paragraphs (1), (2), (4), and 
     (5), the Secretary shall, in amounts and for a term specified 
     in a conservation security contract and taking into account 
     any advance payments, make an annual payment, directly or 
     indirectly, to the individual or entity covered by the 
     conservation security contract in an amount not to exceed--
       ``(i) in the case of a Tier I conservation security 
     contract, $20,000;
       ``(ii) in the case of a Tier II conservation security 
     contract, $35,000; or
       ``(iii) in the case of a Tier III conservation security 
     contract, $50,000.
       ``(B) Limitation on nonbonus payments.--In applying the 
     payment limitation under each of clauses (i), (ii), and (iii) 
     of subparagraph (A), an individual or entity may not receive, 
     directly or indirectly, payments described in clauses (i) and 
     (ii) of paragraph (1)(C), (1)(D), or (1)(E), as appropriate, 
     in an amount that exceeds 75 percent of the applicable 
     payment limitation.
       ``(C) Other usda payments.--If a producer has the same 
     practices on the same land enrolled in the conservation 
     security program and 1 or more other conservation programs 
     administered by the Secretary, the Secretary shall include 
     all payments from the conservation security program and the 
     other conservation programs, other than payments for 
     conservation easements, in applying the annual payment 
     limitations under this paragraph.
       ``(D) Non-usda payments.--
       ``(i) In general.--A payment described in clause (ii) shall 
     not be considered an annual payment for purposes of the 
     annual payment limitations under this paragraph.
       ``(ii) Payment.--A payment referred to in clause (i) is a 
     payment that--

       ``(I) is for the same practice on the same land enrolled in 
     the conservation security program; and
       ``(II) is received from a Federal program that is not 
     administered by the Secretary, or that is administered by any 
     State, local, or private agricultural agency or organization.

       ``(E) Commensurate share.--To be eligible to receive a 
     payment under this chapter, an individual or entity shall 
     make contributions (including contributions of land, labor, 
     management, equipment, or capital) to the operation of the 
     farm that are at least commensurate with the share of the 
     proceeds of the operation of the individual or entity.
       ``(4) Land enrolled in other conservation programs.--
     Notwithstanding any other provision of law, if a producer has 
     land enrolled in another conservation program administered by 
     the Secretary and has applied to enroll the same land in the 
     conservation security program, the producer may elect to--
       ``(A) convert the contract under the other conservation 
     program to a conservation security contract, without penalty, 
     except that this subparagraph shall not apply to a contract 
     entered into under--
       ``(i) the conservation reserve program under subchapter B 
     of chapter 1; or
       ``(ii) the wetlands reserve program under subchapter C of 
     chapter 1; or
       ``(B) have each annual payment to the producer under this 
     subsection reduced to reflect payment for practices the 
     producer receives under the other conservation program, 
     except that the annual payment under this subsection shall 
     not be reduced by the amount of any incentive received under 
     a program referred to in section 1231(b)(6) for qualified 
     practices that enhance or extend the conservation benefit 
     achieved under the other conservation program.
       ``(5) Waste storage or treatment facilities.--A payment to 
     a producer under this subchapter shall not be provided for 
     the purpose of construction or maintenance of animal waste 
     storage or treatment facilities or associated waste transport 
     or transfer devices for animal feeding operations.
       ``(c) Minimum Practice Requirement.--In determining a 
     payment under subsection (a) or (b) for an owner, operator, 
     or producer that receives a payment under another program 
     administered by the Secretary that is contingent on complying 
     with requirements under subtitle B or C of title XII of the 
     Food Security Act of 1985 (16 U.S.C. 3811 et seq.) relating 
     to the use of highly erodible land or wetland, a payment 
     under this chapter for 1 or more practices on land subject to 
     those requirements shall be for practices that exceed minimum 
     requirements for the owner, operator, or producer under those 
     subtitles, as determined by the Secretary.
       ``(d) Regulations.--
       ``(1) In general.--The Secretary shall promulgate 
     regulations that--
       ``(A) provide for adequate safeguards to protect the 
     interests of tenants and sharecroppers, including provision 
     for sharing payments, on a fair and equitable basis; and
       ``(B) prescribe such other rules as the Secretary 
     determines to be necessary to ensure a fair and reasonable 
     application of the limitations established under subsections 
     (a) and (b).
       ``(2) Penalties for schemes or devices.--
       ``(A) In general.--If the Secretary determines that an 
     individual or entity has adopted a scheme or device to evade, 
     or that has the purpose of evading, the regulations 
     promulgated under paragraph (1), the individual or entity 
     shall be ineligible to participate in the conservation 
     security program for--
       ``(i) the year for which the scheme or device was adopted; 
     and
       ``(ii) each of the following 5 years.
       ``(B) Fraud.--If the Secretary determines that fraud was 
     committed in connection with the scheme or device, the 
     individual or entity shall be ineligible to participate in 
     the conservation security program for--
       ``(i) the year for which the scheme or device was adopted; 
     and
       ``(ii) each of the following 10 years.
       ``(e) Termination.--
       ``(1) In general.--Subject to section 1238B, the Secretary 
     shall allow a producer to terminate the conservation security 
     contract.
       ``(2) Payments.--the producer may retain any or all 
     payments received under a terminated conservation security 
     contract if--
       ``(A) the producer is in full compliance with the terms and 
     conditions (including any maintenance requirements) of the 
     conservation security contract as of the date of the 
     termination; and
       ``(B) the Secretary determines that termination of the 
     contract will not defeat the purposes of the conservation 
     security plan of the producer.
       ``(f) Transfer or Change of Interest in Land Subject to 
     Conservation Security Contract.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     transfer, or change in the interest, of a producer in land 
     subject to a conservation security contract shall result in 
     the termination of the conservation security contract.
       ``(2) Transfer of duties and rights.--Paragraph (1) shall 
     not apply if, not later than 60 days after the date of the 
     transfer or change in the interest in land, the transferee of 
     the land provides written notice to the Secretary that all 
     duties and rights under the conservation security contract 
     have been transferred to the transferee.
       ``(g) Technical Assistance.--
       ``(1) In general.--For each of fiscal years 2003 through 
     2006, the Secretary shall provide technical assistance to 
     producers for the development and implementation of 
     conservation security contracts, in an amount not to exceed 
     20 percent of amounts expended for the fiscal year.
       ``(2) Coordination by the secretary.--The Secretary shall 
     provide overall technical coordination and leadership for the 
     conservation security program, including final approval of 
     all conservation security plans.
       ``(h) Conservation Security Pilot Program.--
       ``(1) In general.--Effective October 1, 2004, the 
     Secretary, in cooperation with appropriate State agencies, 
     may establish a program in 1 State to demonstrate and 
     evaluate the implementation of a conservation security 
     program by a State described in paragraph (2).
       ``(2) Eligible state.--The State referred to in paragraph 
     (1) shall be a State selected by the Secretary--
       ``(A) in consultation with--
       ``(i) the Committee on Agriculture of the House of 
     Representatives; and
       ``(ii) the Committee on Agriculture, Nutrition, and 
     Forestry of the Senate; and
       ``(B) after taking into consideration--
       ``(i) the percentage of private land in agricultural 
     production in the State; and
       ``(ii) infrastructure in the State that is available to 
     implement the pilot program under paragraph (1).''.

[[Page S12890]]

     SEC. 202. FUNDING.

       Section 1241 of the Food Security Act of 1985 (16 U.S.C. 
     3841) is amended by adding at the end the following:
       ``(c) Conservation Security Program.--Of the funds of the 
     Commodity Credit Corporation, the Corporation shall make 
     available for each of fiscal years 2002 through 2006 such 
     sums as are necessary to carry out subchapter A of chapter 2 
     (including the provision of technical assistance).''.

     SEC. 203. PARTNERSHIPS AND COOPERATION.

       Section 1243 of the Food Security Act of 1985 (16 U.S.C. 
     3843) is amended by adding at the end the following:
       ``(f) Partnerships and Cooperation.--
       ``(1) In general.--In carrying out any program under 
     subtitle D, the Secretary may designate special projects, as 
     recommended by the State Conservationist, after consultation 
     with the State technical committee, to enhance technical and 
     financial assistance provided to owners, operators, and 
     producers to address environmental issues affected by 
     agricultural production with respect to--
       ``(A) meeting the purposes of--
       ``(i) the Federal Water Pollution Control Act (33 U.S.C. 
     1251 et seq.) or comparable State laws in impaired or 
     threatened watersheds;
       ``(ii) the Safe Drinking Water Act (42 U.S.C. 300f et seq.) 
     or comparable State laws in watersheds providing water for 
     drinking water supplies; or
       ``(iii) the Clean Air Act (42 U.S.C. 7401 et seq.) or 
     comparable State laws; or
       ``(B) watersheds of special significance, conservation 
     priority areas described in section 1230(c), or other 
     geographic areas of environmental sensitivity, such as 
     wetland, including State or multi-State projects--
       ``(i) to facilitate surface and ground water conservation;
       ``(ii) to protect water quality;
       ``(iii) to protect endangered or threatened species or 
     habitat, such as conservation corridors;
       ``(iv) to improve methods of irrigation;
       ``(v) to convert acreage from irrigated production; or
       ``(vi) to reduce nutrient loads of watersheds.''.
       ``(2) Incentives.--To realize the purposes of the special 
     projects under paragraph (1), the Secretary may provide 
     incentives to owners, operators, and producers participating 
     in the special projects to encourage partnerships, 
     enrollments of exceptional environmental value, and sharing 
     of technical and financial resources among owners, operators, 
     and producers and among owners, operators, and producers and 
     governmental and nongovernmental organizations.
       ``(3) Flexibility.--
       ``(A) In general.--The Secretary may enter into agreements 
     with States (including State agencies and units of local 
     government) and nongovernmental organizations to allow 
     greater flexibility to adjust the application of eligibility 
     criteria, approved practices, innovative conservation 
     practices, and other elements of the programs under this 
     title to better reflect unique local circumstances and 
     purposes in a manner that is consistent with--
       ``(i) environmental enhancement and long-term 
     sustainability of the natural resource base; and
       ``(ii) the purposes of this title.
       ``(B) Plan.--Each party to an agreement under subparagraph 
     (A) shall submit to the Secretary, for approval by the 
     Secretary, a special project area or priority area program 
     plan for each program to be carried out by the party that 
     includes--
       ``(i) a description of the proposed adjustments to program 
     implementation (including a description of how those 
     adjustments will accelerate the achievement of environmental 
     benefits);
       ``(ii) an analysis of the contribution those adjustments 
     will make to the effectiveness of programs in achieving the 
     purposes of the special project or priority area program;
       ``(iii) a timetable for reevaluating the need for or 
     performance of the proposed adjustments;
       ``(iv) a description of non-Federal programs and resources 
     that will contribute to achieving the purposes of the special 
     project or priority area program; and
       ``(v) a plan for regular monitoring, evaluation, and 
     reporting of progress toward the purposes of the special 
     project or priority area program.
       ``(4) Purposes of special projects.--The Secretary may 
     carry out special projects, the purposes of which are to 
     encourage--
       ``(A) producers to cooperate in the installation and 
     maintenance of conservation systems that affect multiple 
     agricultural operations;
       ``(B) the sharing of information and technical and 
     financial resources;
       ``(C) cumulative environmental benefits across operations 
     of producers; and
       ``(D) the development and demonstration of innovative 
     conservation methods.
       ``(5) Funding.--
       ``(A) In general.--In addition to resources from programs 
     under subtitle D, subject to subparagraph (B), the Secretary 
     shall use 5 percent of the funds made available for each 
     fiscal year under section 1241(b) to carry out activities 
     that are authorized under the environmental quality 
     incentives program established under chapter 4 of subtitle D.
       ``(B) Unused funding.--Any funds made available for a 
     fiscal year under subparagraph (A) that are not obligated by 
     April 1 of the fiscal year may be used to carry out other 
     activities under the environmental quality incentives program 
     during the fiscal year in which the funding becomes 
     available.''.

     SEC. 204. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION 
                   PROGRAMS.

       Subtitle E of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3841 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 1244. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION 
                   PROGRAMS.

       ``(a) Good Faith Reliance.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, except as provided in paragraph (4), the Secretary shall 
     provide equitable relief to an owner, operator, or producer 
     that has entered into a contract under a conservation program 
     administered by the Secretary, and that is subsequently 
     determined to be in violation of the contract, if the owner, 
     operator, or producer, in attempting to comply with the terms 
     of the contract and enrollment requirements--
       ``(A) took actions in good faith reliance on the action or 
     advice of an employee of the Secretary; and
       ``(B) had no knowledge that the actions taken were in 
     violation of the contract.
       ``(2) Types of relief.--The Secretary shall--
       ``(A) to the extent the Secretary determines that an owner, 
     operator, or producer has been injured by good faith reliance 
     described in paragraph (1), allow the owner, operator, or 
     producer--
       ``(i) to retain payments received under the contract;
       ``(ii) to continue to receive payments under the contract;
       ``(iii) to keep all or part of the land covered by the 
     contract enrolled in the applicable program;
       ``(iv) to reenroll all or part of the land covered by the 
     contract in the applicable program; or
       ``(v) to receive any other equitable relief the Secretary 
     considers appropriate; and
       ``(B) require the owner, operator, or producer to take such 
     actions as are necessary to remedy any failure to comply with 
     the contract.
       ``(3) Relationship to other law.--The authority to provide 
     relief under this subsection shall be in addition to any 
     other authority provided in this or any other Act.
       ``(4) Exceptions.--This section shall not apply to--
       ``(A) any pattern of conduct in which an employee of the 
     Secretary takes actions or provides advice with respect to an 
     owner, operator, or producer that the employee and the owner, 
     operator, or producer know are inconsistent with applicable 
     law (including regulations); or
       ``(B) an owner, operator, or producer takes any action, 
     independent of any advice or authorization provided by an 
     employee of the Secretary, that the owner, operator, or 
     producer knows or should have known to be inconsistent with 
     applicable law (including regulations).
       ``(5) Applicability of relief.--Relief under this section 
     shall be available for contracts in effect on or after the 
     date of enactment of this section.
       ``(b) Education, Outreach, Monitoring, and Evaluation.--In 
     carrying out any conservation program administered by the 
     Secretary, the Secretary--
       ``(1) shall provide education, outreach, training, 
     monitoring, evaluation, technical assistance, and related 
     services to agricultural producers (socially disadvantaged 
     agricultural producers, beginning farmers and ranchers, 
     Indian tribes (as those terms are defined in section 1238), 
     and limited resource agricultural producers);
       ``(2) may enter into contracts with States (including State 
     agencies and units of local government), private nonprofit, 
     community-based organizations, and educational institutions 
     with demonstrated experience in providing the services 
     described in paragraph (1), to provide those services; and
       ``(3) shall use such sums as are necessary from funds of 
     the Commodity Credit Corporation to carry out activities 
     described in paragraphs (1) and (2).
       ``(c) Beginning Farmers and Ranchers and Indian Tribes.--In 
     carrying out any conservation program administered by the 
     Secretary, the Secretary may provide to beginning farmers and 
     ranchers and Indian tribes (as those terms are defined in 
     section 1238) and limited resource agricultural producers 
     incentives to participate in the conservation program to--
       ``(1) foster new farming opportunities; and
       ``(2) enhance environmental stewardship over the long term.
       ``(d) Program Evaluation.--The Secretary shall maintain 
     data concerning conservation security plans, conservation 
     practices planned or implemented, environmental outcomes, 
     economic costs, and related matters under conservation 
     programs administered by the Secretary.
       ``(e) Mediation and Informal Hearings.--If the Secretary 
     makes a decision under a conservation program administered by 
     the Secretary that is adverse to an owner, operator, or 
     producer, at the request of the owner, operator, or producer, 
     the Secretary shall provide the owner, operator, or producer 
     with mediation services or an informal hearing on the 
     decision.
       ``(f) Technical Assistance.--
       ``(1) In general.--Under any conservation program 
     administered by the Secretary, subject to paragraph (2), 
     technical assistance

[[Page S12891]]

     provided by persons certified under paragraph (3) (including 
     farmers and ranchers) may include--
       ``(A) conservation planning;
       ``(B) design, installation, and certification of 
     conservation practices;
       ``(C) conservation training for producers; and
       ``(D) such other conservation activities as the Secretary 
     determines to be appropriate.
       ``(2) Outside assistance.--
       ``(A) In general.--The Secretary may contract directly with 
     qualified persons not employed by the Department to provide 
     conservation technical assistance.
       ``(B) Payment by secretary.--Subject to subparagraph (C), 
     the Secretary may provide a payment to an owner, operator, or 
     producer enrolled in a conservation program administered by 
     the Secretary if the owner, operator, or producer elects to 
     obtain technical assistance from a person certified to 
     provide technical assistance under this subsection.
       ``(C) Nonprivate providers.--In determining whether to 
     provide a payment under subparagraph (B) to a nonprivate 
     provider, the Secretary shall provide a payment if the 
     provision of the payment would result in an increase in the 
     total amount of technical assistance available to producers, 
     as determined by the Secretary.
       ``(3) Certification of providers of technical assistance.--
       ``(A) Procedures.--
       ``(i) In general.--The Secretary shall establish procedures 
     for certifying persons not employed by the Department to 
     provide technical assistance in planning, designing, or 
     certifying activities to participate in any conservation 
     program administered by the Secretary to agricultural 
     producers and landowners participating, or seeking to 
     participate, in conservation programs administered by the 
     Secretary.
       ``(ii) Non-federal assistance.--The Secretary may request 
     the services of, and enter into a cooperative agreement with, 
     a State water quality agency, State fish and wildlife agency, 
     State forestry agency, or any other governmental or 
     nongovernmental organization or person considered appropriate 
     to assist in providing the technical assistance necessary to 
     develop and implement conservation plans under this title.
       ``(B) Standards.--The Secretary shall establish standards 
     for the conduct of--
       ``(i) the certification process conducted by the Secretary; 
     and
       ``(ii) periodic recertification by the Secretary of 
     providers.
       ``(C) Certification required.--
       ``(i) In general.--A provider may not provide to any 
     producer technical assistance described in paragraph 
     (3)(A)(i) unless the provider is certified by the Secretary.
       ``(ii) Waiver.--The Secretary may exempt a provider from 
     any requirement of this subparagraph if the Secretary 
     determines that the provider has been certified or 
     recertified to provide technical assistance through a program 
     the standards of which meet or exceed standards established 
     by the Secretary under subparagraph (B).
       ``(D) Fee.--
       ``(i) In general.--In exchange for certification or 
     recertification, a provider shall pay a fee to the Secretary 
     in an amount determined by the Secretary.
       ``(ii) Account.--A fee paid to the Secretary under clause 
     (i) shall be--

       ``(I) credited to the account in the Treasury that incurs 
     costs relating to implementing this subsection; and
       ``(II) made available to the Secretary for use for 
     conservation programs administered by the Secretary, without 
     further appropriation, until expended.

       ``(iii) Waiver.--The Secretary may waive any requirement of 
     any provider to pay a fee under this subparagraph if the 
     provider qualifies for a waiver under subparagraph (C)(ii).
       ``(E) Other requirements.--The Secretary may establish such 
     other requirements as the Secretary determines are necessary 
     to carry out this subsection.
       ``(g) Privacy of Personal Information Relating to Natural 
     Resources Conservation Programs.--
       ``(1) Information received for technical and financial 
     assistance.--
       ``(A) In general.--In accordance with section 1770 and 
     section 552(b)(3) of title 5, United States Code, except as 
     provided in subparagraph (C) and paragraph (3), information 
     described in subparagraph (B)--
       ``(i) shall not be considered to be public information; and
       ``(ii) shall not be released to any person or Federal, 
     State, local agency or Indian tribe (as defined in section 
     1238) outside the Department of Agriculture.
       ``(B) Information.--The information referred to in 
     subparagraph (A) is information--
       ``(i) provided to, or developed by, the Secretary 
     (including a contractor of the Secretary) for the purpose of 
     providing technical or financial assistance to an owner, 
     operator, or producer with respect to any natural resources 
     conservation program administered by the Natural Resources 
     Conservation Service or the Farm Service Agency; and
       ``(ii) that is proprietary to the agricultural operation or 
     land that is a part of an agricultural operation of the 
     owner, operator, or producer.
       ``(C) Exception.--Information compiled by the Secretary, 
     such as a list of owners, operators, or producers that have 
     received payments from the Secretary and the amounts 
     received, shall be--
       ``(i) considered to be public information; and
       ``(ii) may be released to any--

       ``(I) person;
       ``(II) Indian tribe (as defined in section 1238); or
       ``(III) Federal, State, local agency outside the Department 
     of Agriculture.

       ``(2) Inventory, monitoring, and site specific 
     information.--Except as provided in paragraph (3) and 
     notwithstanding any other provision of law, in order to 
     maintain the personal privacy, confidentiality, and 
     cooperation of owners, operators, and producers, and to 
     maintain the integrity of sample sites, the specific 
     geographic locations of data gathering sites of the National 
     Resources Inventory of the Department of Agriculture, and the 
     information generated by those sites--
       ``(A) shall not be considered to be public information; and
       ``(B) shall not be released to any person or Federal, 
     State, local, or tribal agency outside the Department.
       ``(3) Exceptions.--
       ``(A) Release and disclosure for enforcement.--The 
     Secretary may release or disclose to the Attorney General 
     information covered by paragraph (1) or (2) to the extent 
     necessary to enforce the natural resources conservation 
     programs referred to in paragraph (1).
       ``(B) Disclosure to cooperating persons and agencies.--
       ``(i) In general.--The Secretary may release or disclose 
     information covered by paragraph (1) or (2) to a person or 
     Federal, State, local, or tribal agency working in 
     cooperation with the Secretary in providing technical and 
     financial assistance described in paragraph (1)(B)(i) or 
     collecting information from National Resources Inventory data 
     gathering sites.
       ``(ii) Use of information.--The person or Federal, State, 
     local, or tribal agency that receives information described 
     in clause (i) may release the information only for the 
     purpose of assisting the Secretary--

       ``(I) in providing the requested technical or financial 
     assistance; or
       ``(II) in collecting information from National Resources 
     Inventory data gathering sites.

       ``(C) Statistical and aggregate information.--Information 
     covered by paragraph (1) or (2) may be disclosed to the 
     public if the information has been transformed into a 
     statistical or aggregate form that does not allow the 
     identification of any--
       ``(i) individual owner, operator, or producer; or
       ``(ii) specific data gathering site.
       ``(D) Consent of owner, operator, or producer.--
       ``(i) In general.--An owner, operator, or producer may 
     consent to the disclosure of information described in 
     paragraph (1) or (2).
       ``(ii) Condition of other programs.--The participation of 
     the owner, operator, or producer in, and the receipt of any 
     benefit by the owner, operator, or producer under, this title 
     or any other program administered by the Secretary may not be 
     conditioned on the owner, operator, or producer providing 
     consent under this paragraph.
       ``(4) Violations; penalties.--Section 1770(c) shall apply 
     with respect to the release of information collected in any 
     manner or for any purpose prohibited by this subsection.
       ``(h) Indian Tribes.--In carrying out any conservation 
     program administered by the Secretary on land under the 
     jurisdiction of an Indian tribe (as defined in section 1238), 
     the Secretary shall cooperate with the tribal government of 
     the Indian tribe to ensure, to the maximum extent 
     practicable, that the program is administered in a fair and 
     equitable manner.''.

     SEC. 205. REFORM AND ASSESSMENT OF CONSERVATION PROGRAMS.

       (a) In General.--The Secretary of Agriculture shall develop 
     a plan for--
       (1) coordinating conservation programs administered by the 
     Secretary that are targeted at agricultural land to--
       (A) eliminate redundancy; and
       (B) improve delivery;
       (2) to the maximum extent practicable--
       (A) designing forms that are applicable to all conservation 
     programs administered by the Secretary;
       (B) reducing and consolidating paperwork requirements for 
     the programs;
       (C) developing universal classification systems for all 
     information obtained on the forms that can be used by other 
     agencies of the Department of Agriculture;
       (D) ensuring that the information and classification 
     systems developed under this paragraph can be shared with 
     other agencies of the Department through computer 
     technologies used by agencies; and
       (E) developing 1 format for a conservation plan that can be 
     applied to all conservation programs targeted at agricultural 
     land; and
       (3) to the maximum extent practicable, improving the 
     delivery of conservation programs to Indian tribes (as 
     defined in section 4 of the Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 450b)), including 
     programs for the delivery of conservation programs to Indian 
     tribes under plans carried out in conjunction with the 
     Secretary of the Interior.
       (b) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     submit to the Committee on Agriculture of the House of

[[Page S12892]]

     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report that describes the plan 
     developed under subsection (a), including any recommendations 
     for implementation of the plan.
       (c) National Conservation Plan.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a plan and estimated budget for 
     implementing the appraisal of the soil, water, and related 
     resources of the United States contained in the national 
     conservation program under sections 5 and 6 of the Soil and 
     Water Resources Conservation Act of 1977 (16 U.S.C. 2004, 
     2005) as the primary vehicle for managing conservation on 
     agricultural land in the United States.
       (2) Report on implementation.--Not later than April 30, 
     2005, the Secretary shall submit to the Committee on 
     Agriculture of the House of Representatives and Committee on 
     Agriculture, Nutrition, and Forestry of the Senate a report 
     that--
       (A) describes the status of the implementation of the plan 
     described in paragraph (1);
       (B) contains an evaluation of the scope, quality, and 
     outcomes of the conservation practices carried out under the 
     plan; and
       (C) makes recommendations for achieving specific and 
     quantifiable improvements for the purposes of programs 
     covered by the plan.
       (d) Conservation Practice Standards.--The Secretary of 
     Agriculture shall--
       (1) revise standards and, if necessary, establish 
     standards, for eligible conservation practices to include 
     measurable goals for enhancing natural resources, including 
     innovative practices;
       (2) not later than 180 days after the date of enactment of 
     this Act, revise the National Handbook of Conservation 
     Practices and field office technical guides of the Natural 
     Resources Conservation Service; and
       (3) not less frequently than once every 5 years, update the 
     Handbook and technical guides.

     SEC. 206. CONSERVATION SECURITY PROGRAM REGULATIONS.

       Beginning on the date of enactment of this Act, the 
     Secretary of Agriculture may promulgate regulations and carry 
     out other actions relating to the implementation of the 
     conservation security program under subchapter A of chapter 2 
     of subtitle D of title XII of the Food Security Act of 1985 
     (as added by section 201).

     SEC. 207. CONFORMING AMENDMENTS.

       (a) Chapter 1 of subtitle D of title XII of the Food 
     Security Act of 1985 (16 U.S.C. 3830 et seq.) is amended in 
     the chapter heading by striking ``ENVIRONMENTAL CONSERVATION 
     ACREAGE RESERVE PROGRAM'' and inserting ``COMPREHENSIVE 
     CONSERVATION ENHANCEMENT PROGRAM''.
       (b) Section 1230 of the Food Security Act of 1985 (16 
     U.S.C. 3830) is amended--
       (1) in the section heading, by striking ``ENVIRONMENTAL 
     CONSERVATION ACREAGE RESERVE PROGRAM'' and inserting 
     ``COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM'';
       (2) in subsection (a)(1), by striking ``an environmental 
     conservation acreage reserve program'' and inserting ``a 
     comprehensive conservation enhancement program''; and
       (3) by striking ``ECARP'' each place it appears and 
     inserting ``CCEP''.
       (c) Section 1230A of the Food Security Act of 1985 (16 
     U.S.C. 3830a) is repealed.
       (d) Section 1243 of the Food Security Act of 1985 (16 
     U.S.C. 3843) is amended by striking the section heading and 
     inserting the following:

     ``SEC. 1243. ADMINISTRATION OF CCEP.''.

                     Subtitle B--Program Extensions

     SEC. 211. COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM.

       (a) In General.--Section 1230(a) of the Food Security Act 
     of 1985 (16 U.S.C. 3830(a)) is amended--
       (1) in paragraph (1), by striking ``2002'' and inserting 
     ``2006''; and
       (2) in paragraph (3)--
       (A) in subparagraph (B), by striking ``and'' at the end; 
     and
       (B) by striking subparagraph (C) and inserting the 
     following:
       ``(C) the grassland reserve program established under 
     subchapter C of chapter 2;
       ``(D) the environmental quality incentives program 
     established under chapter 4;
       ``(E) the wildlife habitat incentive program established 
     under section 1240M; and
       ``(F) the program for conservation of private grazing land 
     established under section 1240P.''.
       (b) Priority.--Section 1230(c) of the Food Security Act of 
     1985 (16 U.S.C. 3830(c)) is amended by adding at the end the 
     following:
       ``(4) Priority.--In designating conservation priority areas 
     under paragraph (1), the Secretary shall give priority to 
     areas in which designated land would facilitate the most 
     rapid completion of projects that--
       ``(A) are ongoing as of the date of the application; and
       ``(B) meet the purposes of a program established under this 
     title.''.
       (c) Funding.--Section 1241(a) of the Food Security Act of 
     1985 (16 U.S.C. 3841(a)) is amended--
       (1) by striking ``2002'' and inserting ``2006'';
       (2) by inserting ``(including the provision of technical 
     assistance)'' after ``the programs'';
       (3) in paragraph (2)--
       (A) by striking ``subchapter C'' and inserting 
     ``subchapters C and D''; and
       (B) by striking ``and'' at the end;
       (4) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (5) by adding at the end the following:
       ``(4) chapter 6 of subtitle D.''.

     SEC. 212. CONSERVATION RESERVE PROGRAM.

       (a) Reauthorization.--
       (1) In general.--Section 1231 of the Food Security Act of 
     1985 (16 U.S.C. 3831) is amended in subsections (a), (b)(3), 
     and (d), by striking ``2002'' each place it appears and 
     inserting ``2006'.
       (2) Duties of owners and operators.--Section 1232(c) of the 
     Food Security Act of 1985 (16 U.S.C. 3832(c)) is amended by 
     striking ``2002'' and inserting ``2006''.
       (b) Conservation Priority Areas.--
       (1) Eligibility.--Section 1231(b) of the Food Security Act 
     of 1985 (16 U.S.C. 3831(b)) is amended--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) highly erodible cropland that--
       ``(A)(i) if permitted to remain untreated could 
     substantially reduce the production capability for future 
     generations; or
       ``(ii) cannot be farmed in accordance with a conservation 
     plan that complies with the requirements of subtitle B; and
       ``(B) the Secretary determines had a cropping history or 
     was considered to be planted for 3 of the 6 years preceding 
     the date of enactment of the Agriculture, Conservation, and 
     Rural Enhancement Act of 2001 (except for land enrolled in 
     the conservation reserve program as of that date);''; and
       (B) by adding at the end the following:
       ``(5) the portion of land in a field not enrolled in the 
     conservation reserve in a case in which more than 50 percent 
     of the land in the field is enrolled as a buffer under a 
     program described in paragraph (6)(A), if the land is 
     enrolled as part of the buffer; and
       ``(6) land (including land that is not cropland) enrolled 
     through continuous signup--
       ``(A) to establish conservation buffers as part of the 
     program described in a notice issued on March 24, 1998 (63 
     Fed. Reg. 14109) or a successor program; or
       ``(B) into the conservation reserve enhancement program 
     described in a notice issued on May 27, 1998 (63 Fed. Reg. 
     28965) or a successor program.''.
       (2) CRP priority areas.--Section 1231(f) of the Food 
     Security Act of 1985 (16 U.S.C. 3831(f)) is amended by adding 
     at the end the following:
       ``(5) Priority.--In designating conservation priority areas 
     under paragraph (1), the Secretary shall give priority to 
     areas in which designated land would facilitate the most 
     rapid completion of projects that--
       ``(A) are ongoing as of the date of the application; and
       ``(B) meet the purposes of the program established under 
     this subchapter.''.
       (c) Maximum Enrollment.--Section 1231(d) of the Food 
     Security Act of 1985 (16 U.S.C. 3831(d)) is amended by 
     striking ``36,400,000'' and inserting ``41,100,000''.
       (d) Duration of Contracts; Hardwood Trees.--Section 
     1231(e)(2) of the Food Security Act of 1985 (16 U.S.C. 
     3831(e)(2)) is amended--
       (1) by striking ``In the'' and inserting the following:
       ``(A) In general.--In the'';
       (2) by striking ``The Secretary'' and inserting the 
     following:
       ``(B) Existing hardwood tree contracts.--The Secretary''; 
     and
       ``(3) by adding at the end the following:
       ``(C) Extension of hardwood tree contracts.--
       ``(i) In general.--In the case of land devoted to hardwood 
     trees under a contract entered into under this subchapter 
     before the date of enactment of this subparagraph, the 
     Secretary may extend the contract for a term of not more than 
     15 years.
       ``(ii) Rental payments.--The amount of a rental payment for 
     a contract extended under clause (i)--

       ``(I) shall be determined by the Secretary; but
       ``(II) shall not exceed 50 percent of the rental payment 
     that was applicable to the contract before the contract was 
     extended.''.

       (e) Pilot Program for Enrollment of Wetland and Buffer 
     Acreage in Conservation Reserve.--Section 1231(h) of the Food 
     Security Act of 1985 (16 U.S.C. 3831(h)) is amended--
       (1) in the subsection heading, by striking ``Pilot'';
       (2) in paragraph (1), by striking ``During the 2001 and 
     2002 calendar years, the Secretary shall carry out a pilot 
     program'' and inserting ``During the 2002 through 2006 
     calendar years, the Secretary shall carry out a program'';
       (3) in paragraph (2), by striking ``pilot''; and
       (4) in paragraph (3)(D)(i), by striking ``5 contiguous 
     acres.'' and inserting ``10 contiguous acres, of which--

       ``(I) not more than 5 acres shall be eligible for payment; 
     and
       ``(II) all acres (including acres that are ineligible for 
     payment) shall be covered by the conservation contract.''.

       (f) Irrigated Land.--Section 1231 of the Food Security Act 
     of 1985 (16 U.S.C. 3831) is amended by adding at the end the 
     following:
       ``(i) Irrigated Land.--Irrigated land shall be enrolled in 
     the programs described in subsection (b)(6) at irrigated land 
     rates unless the Secretary determines that other compensation 
     is appropriate.''.
       (g) Vegetative Cover; Haying and Grazing; Wind Turbines.--
     Section 1232(a) of the

[[Page S12893]]

     Food Security Act of 1985 (16 U.S.C. 3832(a)) is amended--
       (1) in paragraph (4)--
       (A) in subparagraph (A), by striking ``and'' at the end;
       (B) in subparagraph (B), by inserting ``and'' after the 
     semicolon at the end; and
       (C) by adding at the end the following:
       ``(C) in the case of marginal pasture land, an owner or 
     operator shall not be required to plant trees if the land is 
     to be restored--
       ``(i) as wetland; or
       ``(ii) with appropriate native riparian vegetation;'';
       (2) in paragraph (7)--
       (A) by striking ``except that the Secretary--'' and 
     inserting ``except that--'';
       (B) in subparagraph (A)--
       (i) by striking ``(A) may'' and inserting ``(A) the 
     Secretary may''; and
       (ii) by striking ``and'' at the end;
       (C) in subparagraph (B)--
       (i) by striking ``(B) shall'' and inserting ``(B) the 
     Secretary shall''; and
       (ii) by striking the period at the end and inserting a 
     semicolon;
       (D) in subparagraph (C), by striking the period at the end 
     and inserting ``; and''; and
       (E) by adding at the end the following:
       ``(D) for maintenance purposes, the Secretary may permit 
     harvesting or grazing or other commercial uses of forage, in 
     a manner that is consistent with the purposes of this 
     subchapter and a conservation plan approved by the Secretary, 
     on acres enrolled--
       ``(i) to establish conservation buffers as part of the 
     program described in a notice issued on March 24, 1998 (63 
     Fed. Reg. 14109) or a successor program; and
       ``(ii) into the conservation reserve enhancement program 
     described in a notice issued on May 27, 1998 (63 Fed. Reg. 
     28965) or a successor program.'';
       (3) in paragraph (9), by striking ``and'' at the end;
       (4) by redesignating paragraph (10) as paragraph (11); and
       (5) by inserting after paragraph (9) the following:
       ``(10) with respect to any contract entered into after the 
     date of enactment of the Agriculture, Conservation, and Rural 
     Enhancement Act of 2001--
       ``(A) not to produce a crop for the duration of the 
     contract on any other highly erodible land that the owner or 
     operator owns unless the highly erodible land--
       ``(i) has a history of being used to produce a crop other 
     than a forage crop, as determined by the Secretary; or
       ``(ii) is being used as a homestead or building site at the 
     time of purchase; and
       ``(B) on a violation of a contract described in 
     subparagraph (A), to be subject to the requirements of 
     paragraph (5); and''.
       (h) Wind Turbines.--Section 1232 of the Food Security Act 
     of 1985 (8906 U.S.C. 3832) is amended by adding at the end 
     the following:
       ``(f) Wind Turbines.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     may permit an owner or operator of land that is enrolled in 
     the conservation reserve program, but that is not enrolled 
     under continuous signup (as described in section 1231(b)(6)), 
     to install wind turbines on the land.
       ``(2) Number; location.--The Secretary shall determine the 
     number and location of wind turbines that may be installed on 
     a tract of land under paragraph (1), taking into account--
       ``(A) the location, size, and other physical 
     characteristics of the land;
       ``(B) the extent to which the land contains wildlife and 
     wildlife habitat; and
       ``(C) the purposes of the conservation reserve program.
       ``(3) Payment limitation.--Notwithstanding the amount of a 
     rental payment limited by section 1234(c)(2) and specified in 
     a contract entered into under this chapter, the Secretary 
     shall reduce the amount of the rental payment paid to an 
     owner or operator of land on which 1 or more wind turbines 
     are installed under this subsection by an amount determined 
     by the Secretary to be commensurate with the value of the 
     reduction of benefit gained by enrollment of the land in the 
     conservation reserve program.''.
       (i) Additional Eligible Practices.--Section 1234 of the 
     Food Security Act of 1985 (16 U.S.C. 3834) is amended by 
     adding at the end the following:
       ``(i) Payments.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall provide signing and practice incentive payments under 
     the conservation reserve program to owners and operators that 
     implement a practice under--
       ``(A) the program to establish conservation buffers 
     described in a notice issued on March 24, 1998 (63 Fed. Reg. 
     14109) or a successor program; or
       ``(B) the conservation reserve enhancement program 
     described in a notice issued on May 27, 1998 (63 Fed. Reg. 
     28965) or a successor program.
       ``(2) Other practices.--The Secretary shall administer 
     paragraph (1) in a manner that does not reduce the amount of 
     payments made by the Secretary for other practices under the 
     conservation reserve program.''.
       (j) Payments.--Section 1239C(f) of the Food Security Act of 
     1985 (16 U.S.C. 3839c(f)) is amended by adding at the end the 
     following:
       ``(5) Exception.--Paragraph (1) shall not apply to any land 
     enrolled in--
       ``(A) the program to establish conservation buffers 
     described in a notice issued on March 24, 1998 (63 Fed. Reg. 
     14109) or a successor program; or
       ``(B) the conservation reserve enhancement program 
     described in a notice issued on May 27, 1998 (63 Fed. Reg. 
     28965) or a successor program.''.
       (k) County Participation.--Section 1243(b)(1) of the Food 
     Security Act of 1985 (16 U.S.C. 3843(b)(1)) is amended by 
     striking ``The Secretary'' and inserting ``Except for land 
     enrolled under continuous signup (as described in section 
     1231(b)(6)), the Secretary''.
       (l) Study on Economic Effects.--Not later than 270 days 
     after the date of enactment of this Act, the Secretary of 
     Agriculture shall submit to the Committee on Agriculture of 
     the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate a report 
     that describes the economic effects on rural communities 
     resulting from the conservation reserve program established 
     under subchapter B of chapter 1 of subtitle D of title XII of 
     the Food Security Act of 1985 (16 U.S.C. 3831 et seq.).

     SEC. 213. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

       (a) In General.--Chapter 4 of subtitle D of title XII of 
     the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) is 
     amended to read as follows:

     ``SEC. 1240. PURPOSES.

       ``The purposes of the environmental quality incentives 
     program established by this chapter are to promote 
     agricultural production and environmental quality as 
     compatible national goals, and to maximize environmental 
     benefits per dollar expended, by--
       ``(1) assisting producers in complying with--
       ``(A) this title;
       ``(B) the Federal Water Pollution Control Act (33 U.S.C. 
     1251 et seq.);
       ``(C) the Safe Drinking Water Act (42 U.S.C. 300f et seq.);
       ``(D) the Clean Air Act (42 U.S.C. 7401 et seq.); and
       ``(E) other Federal, State, and local environmental laws 
     (including regulations);
       ``(2) 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, and local agencies;
       ``(3) providing flexible technical and financial assistance 
     to producers to install and maintain conservation systems 
     that enhance soil, water, related natural resources 
     (including grazing land and wetland), and wildlife while 
     sustaining production of food and fiber;
       ``(4) assisting producers to make beneficial, cost 
     effective changes to cropping systems, grazing management, 
     nutrient management associated with livestock, pest or 
     irrigation management, or other practices on agricultural 
     land;
       ``(5) facilitating partnerships and joint efforts among 
     producers and governmental and nongovernmental organizations; 
     and
       ``(6) consolidating and streamlining conservation planning 
     and regulatory compliance processes to reduce administrative 
     burdens on producers and the cost of achieving environmental 
     goals.

     ``SEC. 1240A. DEFINITIONS.

       ``In this chapter:
       ``(1) Beginning farmer or rancher.--The term `beginning 
     farmer or rancher' has the meaning provided under section 
     343(a) of the Consolidated Farm and Rural Development Act (7 
     U.S.C. 1999(a)).
       ``(2) Comprehensive nutrient management.--
       ``(A) In general.--The term `comprehensive nutrient 
     management' means any combination of structural practices, 
     land management practices, and management activities 
     associated with crop or livestock production described in 
     subparagraph (B) that collectively ensure that the purposes 
     of crop or livestock production and preservation of natural 
     resources (especially the preservation and enhancement of 
     water quality) are compatible.
       ``(B) Elements.--For the purpose of subparagraph (A), 
     structural practices, land management practices, and 
     management activities associated with livestock production 
     are--
       ``(i) manure and wastewater handling and storage;
       ``(ii) manure processing, composting, or digestion for 
     purposes of capturing emissions, concentrating nutrients for 
     transport, destroying pathogens or otherwise improving the 
     environmental safety and beneficial uses of manure;
       ``(iii) land treatment practices;
       ``(iv) nutrient management;
       ``(v) recordkeeping;
       ``(vi) feed management; and
       ``(vii) other waste utilization options.
       ``(C) Practice.--
       ``(i) Planning.--The development of a comprehensive 
     nutrient management plan shall be a practice that is eligible 
     for incentive payments and technical assistance under this 
     chapter.
       ``(ii) Implementation.--The implementation of a 
     comprehensive nutrient plan shall be accomplished through 
     structural and land management practices identified in the 
     plan.
       ``(3) Eligible land.--The term `eligible land' means 
     agricultural land (including cropland, grassland, rangeland, 
     pasture, private nonindustrial forest land, and other land on 
     which crops or livestock are produced), including 
     agricultural land that the Secretary determines poses a 
     serious threat

[[Page S12894]]

     to soil, water, or related resources by reason of the soil 
     types, terrain, climatic, soil, topographic, flood, or saline 
     characteristics, or other factors or natural hazards.
       ``(4) Innovative technology.--The term `innovative 
     technology' means a new conservation technology that, as 
     determined by the Secretary--
       ``(A) maximizes environmental benefits;
       ``(B) complements agricultural production; and
       ``(C) may be adopted in a practical manner.
       ``(5) Land management practice.--The term `land management 
     practice' means a site-specific nutrient or manure 
     management, integrated pest management, irrigation 
     management, tillage or residue management, grazing 
     management, air quality management, or other land management 
     practice carried out on eligible land that the Secretary 
     determines is needed to protect from degradation, in the most 
     cost-effective manner, water, soil, or related resources.
       ``(6) Livestock.--The term `livestock' means dairy cattle, 
     beef cattle, laying hens, broilers, turkeys, swine, sheep, 
     and such other animals as are determined by the Secretary.
       ``(7) Managed grazing.--The term `managed grazing' means 
     the application of 1 or more practices that involve the 
     frequent rotation of animals on grazing land to--
       ``(A) enhance plant health;
       ``(B) limit soil erosion;
       ``(C) protect ground and surface water quality; or
       ``(D) benefit wildlife.
       ``(8) Maximize environmental benefits per dollar 
     expended.--
       ``(A) In general.--The term `maximize environmental 
     benefits per dollar expended' means to maximize environmental 
     benefits to the extent the Secretary determines is 
     practicable and appropriate, taking into account the amount 
     of funding made available to carry out this chapter.
       ``(B) Limitation.--The term `maximize environmental 
     benefits per dollar expended' does not require the 
     Secretary--
       ``(i) to require the adoption of the least cost practice or 
     technical assistance; or
       ``(ii) to require the development of a plan under section 
     1240E as part of an application for payments or technical 
     assistance.
       ``(9) Practice.--The term `practice' means 1 or more 
     structural practices, land management practices, and 
     comprehensive nutrient management planning practices.
       ``(10) Producer.--
       ``(A) In general.--The term `producer' means an owner, 
     operator, landlord, tenant, or sharecropper that--
       ``(i) shares in the risk of producing any crop or 
     livestock; and
       ``(ii) is entitled to share in the crop or livestock 
     available for marketing from a farm (or would have shared had 
     the crop or livestock been produced).
       ``(B) Hybrid seed growers.--In determining whether a grower 
     of hybrid seed is a producer, the Secretary shall not take 
     into consideration the existence of a hybrid seed contract.
       ``(11) Program.--The term `program' means the environmental 
     quality incentives program comprised of sections 1240 through 
     1240J.
       ``(12) Structural practice.--The term `structural practice' 
     means--
       ``(A) the establishment on eligible land of a site-specific 
     animal waste management facility, terrace, grassed waterway, 
     contour grass strip, filterstrip, tailwater pit, permanent 
     wildlife habitat, constructed wetland, or other structural 
     practice that the Secretary determines is needed to protect, 
     in the most cost-effective manner, water, soil, or related 
     resources from degradation; and
       ``(B) the capping of abandoned wells on eligible land.

     ``SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION OF 
                   ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

       ``(a) Establishment.--
       ``(1) In general.--During each of the 2002 through 2006 
     fiscal years, the Secretary shall provide technical 
     assistance, cost-share payments, and incentive payments to 
     producers that enter into contracts with the Secretary under 
     the program.
       ``(2) Eligible practices.--
       ``(A) Structural practices.--A producer that implements a 
     structural practice shall be eligible for any combination of 
     technical assistance, cost-share payments, and education.
       ``(B) Land management practices.--A producer that performs 
     a land management practice shall be eligible for any 
     combination of technical assistance, incentive payments, and 
     education.
       ``(C) Comprehensive nutrient management planning.--A 
     producer that develops a comprehensive nutrient management 
     plan shall be eligible for any combination of technical 
     assistance, incentive payments, and education.
       ``(3) Education.--The Secretary may provide conservation 
     education at national, State, and local levels consistent 
     with the purposes of the program to--
       ``(A) any producer that is eligible for assistance under 
     the program; or
       ``(B) any producer that is engaged in the production of an 
     agricultural commodity.
       ``(b) Application and Term.--With respect to practices 
     implemented under the program--
       ``(1) a contract between a producer and the Secretary may--
       ``(A) apply to 1 or more structural practices, land 
     management practices, and comprehensive nutrient management 
     planning practices; and
       ``(B) have a term of not less than 3, nor more than 10, 
     years, as determined appropriate by the Secretary, depending 
     on the practice or practices that are the basis of the 
     contract; and
       ``(2) a producer may not enter into more than 1 contract 
     for structural practices involving livestock nutrient 
     management during the period of fiscal years 2002 through 
     2006.
       ``(c) Application and Evaluation.--
       ``(1) In general.--The Secretary shall establish an 
     application and evaluation process for awarding technical 
     assistance, cost-share payments, and incentive payments to a 
     producer in exchange for the performance of 1 or more 
     practices that maximize environmental benefits per dollar 
     expended.
       ``(2) Comparable environmental value.--
       ``(A) In general.--The Secretary shall establish a process 
     for selecting applications for technical assistance, cost-
     share payments, and incentive payments in any case in which 
     there are numerous applications for assistance for practices 
     that would provide substantially the same level of 
     environmental benefits.
       ``(B) Criteria.--The process under subparagraph (A) shall 
     be based on--
       ``(i) a reasonable estimate of the projected cost of the 
     proposals described in the applications; and
       ``(ii) the priorities established under the program, and 
     other factors, that maximize environmental benefits per 
     dollar expended.
       ``(3) Consent of owner.--If the producer making an offer to 
     implement a structural practice is a tenant of the land 
     involved in agricultural production, for the offer to be 
     acceptable, the producer shall obtain the consent of the 
     owner of the land with respect to the offer.
       ``(4) Bidding down.--If the Secretary determines that the 
     environmental values of 2 or more applications for technical 
     assistance, cost-share payments, or incentive payments are 
     comparable, the Secretary shall not assign a higher priority 
     to the application only because it would present the least 
     cost to the program established under the program.
       ``(d) Cost-Share Payments.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     cost-share payments provided to a producer proposing to 
     implement 1 or more practices under the program shall be not 
     more than 75 percent of the cost of the practice, as 
     determined by the Secretary.
       ``(2) Exceptions.--
       ``(A) Limited resource and beginning farmers.--The 
     Secretary may increase the amount provided to a producer 
     under paragraph (1) to not more than 90 percent if the 
     producer is a limited resource or beginning farmer or 
     rancher, as determined by the Secretary.
       ``(B) Cost-share assistance from other sources.--Except as 
     provided in paragraph (3), any cost-share payments received 
     by a producer from a State or private organization or person 
     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 under paragraph (1).
       ``(3) Other payments.--A producer shall not be eligible for 
     cost-share payments for practices on eligible land under the 
     program if the producer receives cost-share payments or other 
     benefits for the same practice on the same land under chapter 
     1 and the program.
       ``(e) Incentive Payments.--The Secretary shall make 
     incentive payments in an amount and at a rate determined by 
     the Secretary to be necessary to encourage a producer to 
     perform 1 or more practices.
       ``(f) Technical Assistance.--
       ``(1) In general.--The Secretary shall allocate funding 
     under the program for the provision of technical assistance 
     according to the purpose and projected cost for which the 
     technical assistance is provided for a fiscal year.
       ``(2) Amount.--The allocated amount may vary according to--
       ``(A) the type of expertise required;
       ``(B) the quantity of time involved; and
       ``(C) other factors as determined appropriate by the 
     Secretary.
       ``(3) Limitation.--Funding for technical assistance under 
     the program shall not exceed the projected cost to the 
     Secretary of the technical assistance provided for a fiscal 
     year.
       ``(4) Other authorities.--The receipt of technical 
     assistance under the program shall not affect the eligibility 
     of the producer to receive technical assistance under other 
     authorities of law available to the Secretary.
       ``(5) Incentive payments for technical assistance.--
       ``(A) In general.--A producer that is eligible to receive 
     technical assistance for a practice involving the development 
     of a comprehensive nutrient management plan may obtain an 
     incentive payment that can be used to obtain technical 
     assistance associated with the development of any component 
     of the comprehensive nutrient management plan.
       ``(B) Purpose.--The purpose of the payment shall be to 
     provide a producer the option of obtaining technical 
     assistance for developing any component of a comprehensive 
     nutrient management plan from a certified provider.
       ``(C) Payment.--The incentive payment shall be--
       ``(i) in addition to cost-share or incentive payments that 
     a producer would otherwise

[[Page S12895]]

     receive for structural practices and land management 
     practices;
       ``(ii) used only to procure technical assistance from a 
     certified provider that is necessary to develop any component 
     of a comprehensive nutrient management plan; and
       ``(iii) in an amount determined appropriate by the 
     Secretary, taking into account--

       ``(I) the extent and complexity of the technical assistance 
     provided;
       ``(II) the costs that the Secretary would have incurred in 
     providing the technical assistance; and
       ``(III) the costs incurred by the private provider in 
     providing the technical assistance.

       ``(D) Eligible practices.--The Secretary may determine, on 
     a case by case basis, whether the development of a 
     comprehensive nutrient management plan is eligible for an 
     incentive payment under this paragraph.
       ``(E) Certification by secretary.--
       ``(i) In general.--Only persons that have been certified by 
     the Secretary under section 1244(f)(3) shall be eligible to 
     provide technical assistance under this subsection.
       ``(ii) Quality assurance.--The Secretary shall ensure that 
     certified providers are capable of providing technical 
     assistance regarding comprehensive nutrient management in a 
     manner that meets the specifications and guidelines of the 
     Secretary and that meets the needs of producers under the 
     program.
       ``(F) Advance payment.--On the determination of the 
     Secretary that the proposed comprehensive nutrient management 
     of a producer is eligible for an incentive payment, the 
     producer may receive a partial advance of the incentive 
     payment in order to procure the services of a certified 
     provider.
       ``(G) Final payment.--The final installment of the 
     incentive payment shall be payable to a producer on 
     presentation to the Secretary of documentation that is 
     satisfactory to the Secretary and that demonstrates--
       ``(i) completion of the technical assistance; and
       ``(ii) the actual cost of the technical assistance.
       ``(g) Modification or Termination of Contracts.--
       ``(1) Voluntary modification or termination.--The Secretary 
     may modify or terminate a contract entered into with a 
     producer under this chapter if--
       ``(A) the producer agrees to the modification or 
     termination; and
       ``(B) the Secretary determines that the modification or 
     termination is in the public interest.
       ``(2) Involuntary termination.--The Secretary may terminate 
     a contract under this chapter if the Secretary determines 
     that the producer violated the contract.

     ``SEC. 1240C. EVALUATION OF OFFERS AND PAYMENTS.

       ``(a) In General.--In evaluating applications for technical 
     assistance, cost-share payments, and incentive payments, the 
     Secretary shall accord a higher priority to assistance and 
     payments that--
       ``(1) maximize environmental benefits per dollar expended; 
     and
       ``(2)(A) address national conservation priorities, 
     including--
       ``(i) meeting Federal, State, and local environmental 
     purposes focused on protecting air and water quality;
       ``(ii) comprehensive nutrient management;
       ``(iii) water quality, particularly in impaired watersheds;
       ``(iv) soil erosion;
       ``(v) air quality; or
       ``(vi) pesticide and herbicide management or reduction;
       ``(B) are provided in conservation priority areas 
     established under section 1230(c);
       ``(C) are provided in special projects under section 
     1243(f)(4) with respect to which State or local governments 
     have provided, or will provide, financial or technical 
     assistance to producers for the same conservation or 
     environmental purposes; or
       ``(D) an innovative technology in connection with a 
     structural practice or land management practice.

     ``SEC. 1240D. DUTIES OF PRODUCERS.

       ``To receive technical assistance, cost-share payments, or 
     incentive payments under the program, a producer shall 
     agree--
       ``(1) to implement an environmental quality incentives 
     program plan that describes conservation and environmental 
     purposes to be achieved through 1 or more practices that are 
     approved by the Secretary;
       ``(2) not to conduct any practices on the farm or ranch 
     that would tend to defeat the purposes of the program;
       ``(3) on the violation of a term or condition of the 
     contract at any time the producer has control of the land--
       ``(A) if the Secretary determines that the violation 
     warrants termination of the contract--
       ``(i) to forfeit all rights to receive payments under the 
     contract; and
       ``(ii) to refund to the Secretary all or a portion of the 
     payments received by the owner or operator under the 
     contract, including any interest on the payments, as 
     determined by the Secretary; or
       ``(B) if the Secretary determines that the violation does 
     not warrant termination of the contract, to refund to the 
     Secretary, or accept adjustments to, the payments provided to 
     the owner or operator, as the Secretary determines to be 
     appropriate;
       ``(4) on the transfer of the right and interest of the 
     producer in land subject to the contract, unless the 
     transferee of the right and interest agrees with the 
     Secretary to assume all obligations of the contract, to 
     refund all cost-share payments and incentive payments 
     received under the program, as determined by the Secretary;
       ``(5) to supply information as required by the Secretary to 
     determine compliance with the program plan and requirements 
     of the program; and
       ``(6) to comply with such additional provisions as the 
     Secretary determines are necessary to carry out the program 
     plan.

     ``SEC. 1240E. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

       ``(a) In General.--To be eligible to receive technical 
     assistance, cost-share payments, or incentive payments under 
     the program, a producer of a livestock or agricultural 
     operation shall submit to the Secretary for approval a plan 
     of operations that specifies practices covered under the 
     program, and is based on such terms and conditions, as the 
     Secretary considers necessary to carry out the program, 
     including a description of the practices to be implemented 
     and the purposes to be met by the implementation of the plan.
       ``(b) Avoidance of duplication.--The Secretary shall, to 
     the maximum extent practicable, eliminate duplication of 
     planning activities under the program and comparable 
     conservation programs.

     ``SEC. 1240F. DUTIES OF THE SECRETARY.

       ``To the extent appropriate, the Secretary shall assist a 
     producer in achieving the conservation and environmental 
     goals of a program plan by--
       ``(1) providing technical assistance in developing and 
     implementing the plan;
       ``(2) providing technical assistance, cost-share payments, 
     or incentive payments for developing and implementing 1 or 
     more practices, as appropriate;
       ``(3) providing the producer with information, education, 
     and training to aid in implementation of the plan; and
       ``(4) encouraging the producer to obtain technical 
     assistance, cost-share payments, or grants from other 
     Federal, State, local, or private sources.

     ``SEC. 1240G. LIMITATION ON PAYMENTS.

       ``(a) In General.--An individual or entity may not receive, 
     directly or indirectly, payments under the program that 
     exceed--
       ``(1) $50,000 for any fiscal year; or
       ``(2) $150,000 for any multiyear contract.
       ``(b) Verification.--The Secretary shall identify 
     individuals and entities that are eligible for a payment 
     under the program using social security numbers and taxpayer 
     identification numbers, respectively.

     ``SEC. 1240H. CONSERVATION INNOVATION GRANTS.

       ``(a) In General.--From funds made available to carry out 
     the program, for each of the 2003 through 2006 fiscal years, 
     the Secretary shall use not more than $100,000,000 for each 
     fiscal year to pay the cost of competitive grants that are 
     intended to stimulate innovative approaches to leveraging 
     Federal investment in environmental enhancement and 
     protection, in conjunction with agricultural production, 
     through the program.
       ``(b) Use.--The Secretary may award grants under this 
     section to governmental and nongovernmental organizations and 
     persons, on a competitive basis, to carry out projects that--
       ``(1) involve producers that are eligible for payments or 
     technical assistance under the program;
       ``(2) implement innovative projects, such as--
       ``(A) market systems for pollution reduction;
       ``(B) promoting agricultural best management practices, 
     including the storing of carbon in the soil;
       ``(C) protection of source water for human consumption; and
       ``(D) reducing nutrient loss through the reduction of 
     nutrient inputs by an amount that is at least 15 percent less 
     than the established agronomic application rate, as 
     determined by the Secretary; and
       ``(3) leverage 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.
       ``(c) Cost Share.--The amount of a grant made under this 
     section to carry out a project shall not exceed 50 percent of 
     the cost of the project.
       ``(d) Unused Funding.--Any funds made available for a 
     fiscal year under this section that are not obligated by 
     April 1 of the fiscal year may be used to carry out other 
     activities under this chapter during the fiscal year in which 
     the funding becomes available.

     ``SEC. 1240I. SOUTHERN HIGH PLAINS AQUIFER GROUNDWATER 
                   CONSERVATION.

       ``(a) Definitions.--In this section:
       ``(1) Eligible activity.--
       ``(A) In general.--The term `eligible activity' means an 
     activity carried out to conserve groundwater.
       ``(B) Inclusions.--The term `eligible activity' includes an 
     activity to--
       ``(i) improve an irrigation system;
       ``(ii) reduce the use of water for irrigation (including 
     changing from high-water intensity crops to low-water 
     intensity crops); or
       ``(iii) convert from farming that uses irrigation to 
     dryland farming.
       ``(2) Southern high plains aquifer.--The term `Southern 
     High Plains Aquifer' means the portion of the groundwater 
     reserve under

[[Page S12896]]

     Kansas, New Mexico, Oklahoma, and Texas depicted as Figure 1 
     in the United States Geological Survey Professional Paper 
     1400-B, entitled `Geohydrology of the High Plains Aquifer in 
     Parts of Colorado, Kansas, Nebraska, New Mexico, Oklahoma, 
     South Dakota, Texas, and Wyoming'.
       ``(b) Conservation Measures.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall provide cost-share payments, incentive payments, and 
     groundwater education assistance to producers that draw water 
     from the Southern High Plains Aquifer to carry out eligible 
     activities.
       ``(2) Limitations.--The Secretary shall provide a payment 
     to a producer under this section only if the Secretary 
     determines that the payment will result in a net savings in 
     groundwater resources on the land of the producer.
       ``(3) Cooperation.--In accordance with this subtitle, in 
     providing groundwater education under this subsection, the 
     Secretary shall cooperate with--
       ``(A) States;
       ``(B) land-grant colleges and universities;
       ``(C) educational institutions; and
       ``(D) private organizations.
       ``(c) Funding.--
       ``(1) In general.--Of the funds made available under 
     section 1241(b)(1) to carry out the program, the Secretary 
     shall use to carry out this section--
       ``(A) $15,000,000 for fiscal year 2003;
       ``(B) $25,000,000 for each of fiscal years 2004 and 2005;
       ``(C) $35,000,000 for fiscal year 2006; and
       ``(D) $0 for fiscal year 2007.
       ``(2) Other funds.--Subject to paragraph (3), the funds 
     made available under this subsection shall be in addition to 
     any other funds provided under the program.
       ``(3) Unused funding.--Any funds made available for a 
     fiscal year under paragraph (1) that are not obligated by 
     April 1 of the fiscal year shall be used to carry out other 
     activities in other States under the program.

     ``SEC. 1240J. PILOT PROGRAMS.

       ``(a) Drinking Water Suppliers Pilot Program.--
       ``(1) In general.--For each fiscal year, the Secretary may 
     carry out, in watersheds selected by the Secretary, in 
     cooperation with local water utilities, a pilot program to 
     improve water quality.
       ``(2) Implementation.--The Secretary may select the 
     watersheds referred to in paragraph (1), and make available 
     funds (including funds for the provision of incentive 
     payments) to be allocated to producers in partnership with 
     drinking water utilities in the watersheds, if the drinking 
     water utilities agree to measure water quality at such 
     intervals and in such a manner as may be determined by the 
     Secretary.
       ``(b) Nutrient Reduction Pilot Program.--
       ``(1) In general.--For each of fiscal years 2003 through 
     2006, the Secretary shall use funds made available to carry 
     out the program, in the amounts specified in paragraph (3), 
     in the Chesapeake Bay watershed to provide incentives for 
     agricultural producers in each State to reduce negative 
     effects on watersheds, including through the significant 
     reduction in nutrient applications, as determined by the 
     Secretary.
       ``(2) Payments.--Incentive payments made to a producer 
     under paragraph (1) shall reflect the extent to which the 
     producer reduces nutrient applications.
       ``(3) Funding.--
       ``(A) In general.--Of the amounts made available under 
     section 1241(b) to carry out the program, the Secretary shall 
     use to carry out this subsection--
       ``(i) $10,000,000 for fiscal year 2003;
       ``(ii) $15,000,000 for fiscal year 2004;
       ``(iii) $20,000,000 for fiscal year 2005;
       ``(iv) $25,000,000 for fiscal year 2006; and
       ``(v) $0 for fiscal year 2007.
       ``(B) Unexpended funds.--Any funds made available for a 
     fiscal year under subparagraph (A) that are not obligated by 
     April 1 of the fiscal year shall be used to carry out other 
     activities outside the Chesapeake Bay watershed under this 
     chapter.
       ``(c) Consistency With Watershed Plan.--In allocating funds 
     for the pilot programs under subsections (a) and (b) and any 
     other pilot programs carried out under the program, the 
     Secretary shall take into consideration the extent to which 
     an application for the funds is consistent with--
       ``(1) any applicable locally developed watershed plan; and
       ``(2) the factors established by section 1240C.
       ``(d) Contracts.--
       ``(1) In general.--In carrying out this section, in 
     addition to other requirements under the program, the 
     Secretary shall enter into contracts in accordance with this 
     section with producers the activities of which affect water 
     quality (including the quality of public drinking water 
     supplies) to implement and maintain--
       ``(A) nutrient management;
       ``(B) pest management;
       ``(C) soil erosion practices; and
       ``(D) other conservation activities that protect water 
     quality and human health.
       ``(2) Requirements.--A contract described in paragraph (1) 
     shall--
       ``(A) describe the specific nutrient management, pest 
     management, soil erosion, or other practices to be 
     implemented, maintained, or improved;
       ``(B) contain a schedule of implementation for those 
     practices;
       ``(C) to the maximum extent practicable, address water 
     quality priorities of the watershed in which the operation is 
     located; and
       ``(D) contain such other terms as the Secretary determines 
     to be appropriate.''.
       (b) Funding.--Section 1241 of the Food Security Act of 1985 
     (16 U.S.C. 3841) is amended by striking subsection (b) and 
     inserting the following:
       ``(b) Environmental Quality Incentives Program.--Subject to 
     section 241 of the Agriculture, Conservation, and Rural 
     Enhancement Act of 2001, of the funds of the Commodity Credit 
     Corporation, the Secretary shall make available to provide 
     technical assistance, cost-share payments, incentive 
     payments, bonus payments, grants, and education under the 
     environmental quality incentives program under chapter 4 of 
     subtitle D, to remain available until expended--
       ``(1) $500,000,000 for fiscal year 2002;
       ``(2) $1,300,000,000 for fiscal year 2003;
       ``(3) $1,450,000,000 for each of fiscal years 2004 and 
     2005;
       ``(4) $1,500,000,000 for fiscal year 2006; and
       ``(5) $850,00,000 for fiscal year 2007.''.
       (c) Reimbursements.--Section 11 of the Commodity Credit 
     Corporation Charter Act (15 U.S.C. 714i) is amended in the 
     last sentence by inserting ``but excluding transfers and 
     allotments for conservation technical assistance'' after 
     ``activities''.

     SEC. 214. WETLANDS RESERVE PROGRAM.

       (a) Technical Assistance.--Section 1237(a) of the Food 
     Security Act of 1985 (16 U.S.C. 3837(a)) is amended by 
     inserting ``(including the provision of technical 
     assistance)'' before the period at the end.
       (b) Maximum Enrollment.--Section 1237(b) of the Food 
     Security Act of 1985 (16 U.S.C. 3837(b)) is amended by 
     striking paragraph (1) and inserting the following:
       ``(1) Maximum enrollment.--
       ``(A) In general.--The total number of acres enrolled in 
     the wetlands reserve program shall not exceed 2,225,000 
     acres, of which, to the maximum extent practicable subject to 
     subparagraph (B), the Secretary shall enroll 250,000 acres in 
     each calendar year.
       ``(B) Wetlands reserve enhancement acreage.--Of the acreage 
     enrolled under subparagraph (A) for a calendar year, not more 
     than 25,000 acres may be enrolled in the wetlands reserve 
     enhancement program described in subsection (h).''.
       (c) Reauthorization.--Section 1237(c) of the Food Security 
     Act of 1985 (16 U.S.C. 3837(c)) is amended by striking 
     ``2002'' and inserting ``2006''.
       (d) Wetlands Reserve Enhancement Program.--Section 1237 of 
     the Food Security Act of 1985 (16 U.S.C. 3837) is amended by 
     adding at the end the following:
       ``(h) Wetlands Reserve Enhancement Program.--
       ``(1) In general.--Notwithstanding the Federal Grant and 
     Cooperative Agreement Act of 1977 (41 U.S.C. 501 et seq.), 
     the Secretary may enter into cooperative agreements with 
     State or local governments, and with private organizations, 
     to develop, on land that is enrolled, or is eligible to be 
     enrolled, in the wetland reserve established under this 
     subchapter, wetland restoration activities in watershed 
     areas.
       ``(2) Purpose.--The purpose of the agreements shall be to 
     address critical environmental issues.
       ``(3) Relationship to other authorities.--Nothing in this 
     subsection limits the authority of the Secretary to enter 
     into a cooperative agreement with a party under which 
     agreement the Secretary and the party--
       ``(A) share a mutual interest in the program under this 
     subchapter; and
       ``(B) contribute resources to accomplish the purposes of 
     that program.''.
       (e) Monitoring and Maintenance.--Section 1237C(a)(2) of the 
     Food Security Act of 1985 (16 U.S.C. 3837c(a)(2)) is amended 
     by striking ``assistance'' and inserting ``assistance 
     (including monitoring and maintenance)''.

     SEC. 215. WATER CONSERVATION PROGRAM.

       Subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3831 et seq.) is amended by adding at the end the 
     following:

                ``CHAPTER 6--WATER CONSERVATION PROGRAM

     ``SEC. 1240R. DEFINITIONS.

       ``In this subchapter:
       ``(1) Eligible land.--The term `eligible land' means any 
     land the enrollment in the program of which will further the 
     conservation of threatened and endangered species, or species 
     which may become threatened or endangered if actions are not 
     taken to conserve that species, and the habitat of such 
     species.
       ``(2) Endangered species.--The term `endangered species' 
     has the meaning given the term in section 3 of the Endangered 
     Species Act of 1973 (16 U.S.C. 1532).
       ``(3) Landowner.--The term `landowner' means an owner of 
     eligible land.
       ``(4) Program.--The term `program' means the water 
     conservation program established under section 1240S(a).
       ``(5) Sensitive species.--The term `sensitive species' has 
     the meaning given the term `candidate species' within the 
     meaning of section 424.02(b) of title 50, Code of Federal 
     Regulations (or a successor regulation) or a species which 
     may become threatened or endangered if conservation actions 
     are not taken to conserve that species.
       ``(6) Threatened species.--The term `threatened species' 
     has the meaning given the term in section 3 of the Endangered 
     Species Act of 1973 (16 U.S.C. 1532).
       ``(7) Water right.--The term `water right' means any right 
     or entitlement to water delivery that is--

[[Page S12897]]

       ``(A) exercised via contract, agreement, permit, license, 
     or other arrangement; and
       ``(B) available for acquisition or transfer.

     ``SEC. 1240S. PROGRAM.

       ``(a) Establishment.--Effective for each of the 2003 
     through 2006 calendar years, the Secretary shall establish, 
     and carry out the enrollment of eligible land described in 
     subsection (b) through the use of contracts in, a water 
     conservation program to provide for the acquisition and 
     temporary transfer of water or water rights, or permanent 
     acquisition of water or water rights, from willing sellers 
     that would otherwise be entitled to use the water in 
     accordance with a State-approved water right or a contract 
     with the Secretary, or by other lawful means (including 
     willing sellers in the San Francisco Bay-Delta, the Truckee-
     Carson Basin, and the Walker River Basin).
       ``(b) Enrollment of Eligible Land.--
       ``(1) CRP acreage limit.--The Secretary shall enroll in the 
     program not more than 1,100,000 acres, which acreage shall 
     count against the number of acres authorized to be enrolled 
     in the conservation reserve program under section 1231(d).
       ``(2) Timing.--To the maximum extent practicable, an 
     enrollment under paragraph (1) shall occur during the 
     enrollment period for the conservation reserve program.
       ``(3) Priority in enrollment.--In enrolling eligible land 
     in the program, the Secretary shall give priority to land 
     with associated water or water rights that--
       ``(A) could be used to significantly advance the goals of 
     Federal, State, Tribal and local fish, wildlife, and plant 
     conservation plans, including--
       ``(i) plans that address multiple endangered species, 
     sensitive species, or threatened species; or
       ``(ii) agreements entered into, or conservation plans 
     submitted, under section 6 or 10(a)(2)(A) of the Endangered 
     Species Act of 1973 (16 U.S.C. 1535, 1539(a)(2)(A)), 
     respectively; or
       ``(B) would benefit fish, wildlife, or plants of 1 or more 
     refuges within the National Wildlife Refuge System.
       ``(4) Enrollment authority.--The priority system described 
     in paragraph (3), and not the priority system and bidding 
     system established by the Secretary under subchapter B of 
     chapter 1, shall govern the enrollment of land in the 
     program.

     ``SEC. 1240T. DURATION AND NATURE OF CONTRACTS.

       ``(a) In General.--In enrolling eligible land in the 
     program, the Secretary shall enter into a contract described 
     in subparagraph (b) or (c), as appropriate, with a willing 
     landowner.
       ``(b) Transfer of Water or Water Rights.--In enrolling 
     eligible land in the program, for the purpose of transferring 
     water or water rights associated with eligible land or 
     providing dry year options on such water or water rights, the 
     Secretary shall, in accordance with the water law of the 
     State in which eligible land sought to be enrolled is 
     located--
       ``(1) except as provided in subsection (c), enter into a 
     contract with the landowner for the transfer of those rights 
     that has a term of not less than 1, nor more than 5, years; 
     or
       ``(2) provide for a dry year option contract or other 
     similar agreement that effectuates the purposes of this 
     section.
       ``(c) Permanent Acquisition of Water or Water Rights.--
       ``(1) In general.--Subject to paragraph (2), in enrolling 
     eligible land in the program, for the purpose of permanently 
     acquiring water or water rights associated with the eligible 
     land, the Secretary may enter into a contract or agreement 
     for the acquisition of that water or those water rights 
     with--
       ``(A) the landowner; and
       ``(B) to the extent that matching funds are provided for 
     the acquisition of the water or water rights--
       ``(i) a State (including a political subdivision);
       ``(ii) a nonprofit organization; or
       ``(iii) an Indian tribe.
       ``(2) Limitation.--Of the acres of eligible land authorized 
     to be enrolled in the program under section 1240S(b)(1)(A), 
     not more than 200,000 acres may be enrolled for the permanent 
     acquisition of water or water rights under paragraph (1).
       ``(d) Transfer of Partial Water or Water Rights.--A 
     contract or agreement under this section may provide for the 
     transfer or sale of a portion of the total acre-feet of water 
     associated with land enrolled in the program if--
       ``(1) the landowner agrees in the contract or agreement to 
     adopt a change in practice that reduces the use of water for 
     agricultural purposes;
       ``(2) the transfer or sale meets the requirements of the 
     program; and
       ``(3) the contract or agreement and the purchase price for 
     enrollment of land in the program reflect the fact that only 
     a portion of the water or water rights associated with the 
     eligible land are being transferred or sold.

     ``SEC. 1240U. DUTIES OF LANDOWNERS.

       ``(a) In General.--A landowner that is a party to a 
     contract described in subsection (b) or (c) of section 1238B 
     shall, in accordance with the contract--
       ``(1) agree to transfer to the Secretary water or water 
     rights associated with enrolled eligible land;
       ``(2) agree to take no action that would interfere with the 
     quantity or quality of water transferred or acquired under 
     the contract; and
       ``(3) on violation of any term of the contract that the 
     Secretary determines is of such a nature as to warrant 
     termination of the contract--
       ``(A) forfeit all rights to receive payments under the 
     contract; and
       ``(B) refund to the Secretary any payments received as of 
     the date of the violation (including interest on the 
     payments, as determined by the Secretary).
       ``(b) Transfer of Eligible Land by Landowner.--
       ``(1) In general.--If a landowner transfers any right or 
     interest in eligible land subject to a contract described in 
     subsection (b) or (c) of section 1240T, the landowner shall--
       ``(A) forfeit all rights to receive payments under the 
     contract; and
       ``(B)(i) refund to the Secretary any payments received as 
     of the date of the violation (including interest on the 
     payments, as determined by the Secretary); or
       ``(ii) accept such payment adjustments or make such refunds 
     as the Secretary determines to be appropriate.
       ``(2) Exceptions.--Paragraph (1) shall not apply in any 
     case in which--
       ``(A) a transferee of eligible land or an interest in 
     eligible land described in paragraph (1) agrees with the 
     Secretary--
       ``(i) to assume all obligations under a contract described 
     in subsection (b) or (c) of section 1240T to which the 
     transferred eligible land is subject; or
       ``(ii) to modify the contract in a manner that is 
     consistent with this section; or
       ``(B) eligible land or an interest in eligible land 
     described in paragraph (1) is purchased by or for the United 
     States Fish and Wildlife Service, an Indian tribe, or any 
     other person (including a governmental agency).

     ``SEC. 1240V. DUTIES OF THE SECRETARY.

       ``(a) Payments.--The Secretary shall make payments for 
     eligible land enrolled in the program in accordance with 
     section 1240W.
       ``(b) Use of Water.--The Secretary may direct a landowner 
     to use, or transfer or sell to an entity approved by the 
     Secretary, water described in section 1240U(a)(1) to protect 
     1 or more endangered species, sensitive species, or 
     threatened species.
       ``(c) State Applications and Process.--At the request of a 
     landowner, the Secretary shall submit any necessary State 
     application, and complete any applicable State legal process, 
     for the transfer or acquisition of water under a contract 
     described in subsection (b) or (c) of section 1240T.

     ``SEC. 1240W. PAYMENTS.

       ``(a) In General.--
       ``(1) Temporary transfer of water or water rights.--In a 
     case in which the Secretary enters into a contract described 
     in section 1240T(b), for each year of the term of the 
     contract or agreement, the Secretary shall pay to the 
     landowner a payment in such amount as the Secretary and the 
     landowner jointly determine is appropriate to compensate the 
     landowner for the use of the water or water rights 
     transferred under the contract.
       ``(2) Permanent acquisition of water or water rights.--In a 
     case in which the Secretary enters into a contract described 
     in section 1240T(c), the Secretary shall make a single 
     payment to the landowner in such amount as the Secretary and 
     the landowner jointly determine is appropriate to compensate 
     for the acquisition of water or water rights associated with 
     the enrolled eligible land.
       ``(b) Timing.--The Secretary shall make payments for 
     obligations incurred during the fiscal year by the Secretary 
     under this section as soon as practicable after October 1 of 
     the fiscal year.
       ``(c) Determination of Payment Amount.--The Secretary may 
     determine the amount to be paid to a landowner under 
     paragraph (1) or (2) of subsection (a) by--
       ``(1) taking into consideration such minimum amount as the 
     Secretary determines is necessary to encourage landowners to 
     participate in the program;
       ``(2) soliciting and reviewing bids for enrollment 
     contracts from landowners in such manner as the Secretary may 
     prescribe, except that the bidding process for eligible land 
     enrolled under the program shall be separate from the bidding 
     process for eligible land under the conservation reserve 
     program under section 1234; or
       ``(3) using such other means as the Secretary determines to 
     be appropriate.
       ``(d) Acceptance of Contract Offers.--In determining 
     whether to accept an offer for a contract from a landowner to 
     enroll eligible land in the program, the Secretary shall--
       ``(1) to the maximum extent practicable as determined by 
     the Secretary, subject to paragraphs (3) and (4) of section 
     1240S(b), incorporate the applicable provisions of priority 
     system established under section 1230(c); and
       ``(2) explicitly encourage, and give priority to the 
     permanent and long-term acquisition of water or water rights 
     that accompany the eligible land to be enrolled in the 
     program by providing enhanced payments for--
       ``(A) the permanent acquisition of water or water rights; 
     or
       ``(B) the transfer of water or water rights for terms of 5 
     years.

     ``SEC. 1240X. CONSULTATION.

       ``In enrolling eligible land in the program, to ensure, to 
     the maximum extent practicable, that all water and water 
     rights transferred or acquired under this section

[[Page S12898]]

     are used to protect endangered species, sensitive species, 
     and threatened species, the Secretary shall consult with--
       ``(1) the Secretary of the Interior;
       ``(2) the head of the lead water agency of the State in 
     which the enrolled eligible land is located; and
       ``(3) any affected Indian tribes.

     ``SEC. 1240Y. ADDITIONAL PROVISIONS.

       ``(a) In General.--The terms and conditions of subsections 
     (e), (g), and (h) of section 1234 and subsections (a) through 
     (d) of section 1235 apply to the enrollment of eligible land 
     in the program, to the extent determined to be appropriate by 
     the Secretary.
       ``(b) State Water Law.--
       ``(1) In general.--Nothing in this chapter--
       ``(A) preempts any State water law;
       ``(B) affects any litigation concerning the entitlement to, 
     or lack of entitlement to, water that is ongoing as of the 
     date of enactment of this chapter; or
       ``(C) expands, changes, or otherwise affects the existence 
     or scope of any water right of any individual.
       ``(2) Implementation.--In carrying out the program, the 
     Secretary shall--
       ``(A) ensure, to the maximum extent practicable, that the 
     program does not undermine the implementation of any law in 
     effect as of the date of enactment of this chapter that 
     concerns the transfer or acquisition of water or water rights 
     on a permanent basis; and
       ``(B) implement the program in accordance with the purposes 
     of such laws described in subparagraph (A) as are applicable.
       ``(c) Lease of Water and Water Rights in Klamath River 
     Basin.--In accordance with the program, the Secretary may 
     temporarily lease water or water rights in the Klamath River 
     basin, Oregon and California, if the lease is consistent with 
     State water law (including any provisions of State water law 
     intended to protect water users from economic injury).

     ``SEC. 1240Z. TERMINATION OF AUTHORITY.

       ``The authority of the Secretary to enroll new acres under 
     this chapter terminates on October 1, 2006.''.

     SEC. 216. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

       Subtitle H of title XV of the Agriculture and Food Act of 
     1981 (16 U.S.C. 3451 et seq.) is amended to read as follows:

      ``Subtitle H--Resource Conservation and Development Program

     ``SEC. 1528. DEFINITIONS.

       ``In this subtitle:
       ``(1) Area plan.--The term `area plan' means a resource 
     conservation and use plan that is developed by a council for 
     a designated area of a State or States through a planning 
     process and that includes 1 or more of the following 
     elements:
       ``(A) A land conservation element, the purpose of which is 
     to control erosion and sedimentation.
       ``(B) A water management element that provides 1 or more 
     clear environmental or conservation benefits, the purpose of 
     which is to provide for--
       ``(i) the conservation, use, and quality of water, 
     including irrigation and rural water supplies;
       ``(ii) the mitigation of floods and high water tables;
       ``(iii) the repair and improvement of reservoirs;
       ``(iv) the improvement of agricultural water management; 
     and
       ``(v) the improvement of water quality.
       ``(C) A community development element, the purpose of which 
     is to improve--
       ``(i) the development of resources-based industries;
       ``(ii) the protection of rural industries from natural 
     resource hazards;
       ``(iii) the development of adequate rural water and waste 
     disposal systems;
       ``(iv) the improvement of recreation facilities;
       ``(v) the improvement in the quality of rural housing;
       ``(vi) the provision of adequate health and education 
     facilities;
       ``(vii) the satisfaction of essential transportation and 
     communication needs; and
       ``(viii) the promotion of food security, economic 
     development, and education.
       ``(D) A land management element, the purpose of which is--
       ``(i) energy conservation;
       ``(ii) the protection of agricultural land, as appropriate, 
     from conversion to other uses;
       ``(iii) farmland protection; and
       ``(iv) the protection of fish and wildlife habitats.
       ``(2) Board.--The term `Board' means the Resource 
     Conservation and Development Policy Advisory Board 
     established under section 1533(a).
       ``(3) Council.--The term `council' means a nonprofit entity 
     (including an affiliate of the entity) operating in a State 
     that is--
       ``(A) established by volunteers or representatives of 
     States, local units of government, Indian tribes, or local 
     nonprofit organizations to carry out an area plan in a 
     designated area; and
       ``(B) designated by the chief executive officer or 
     legislature of the State to receive technical assistance and 
     financial assistance under this subtitle.
       ``(4) Designated area.--The term `designated area' means a 
     geographic area designated by the Secretary to receive 
     technical assistance and financial assistance under this 
     subtitle.
       ``(5) Financial assistance.--The term `financial 
     assistance' means a grant or loan provided by the Secretary 
     (or the Secretary and other Federal agencies) to, or a 
     cooperative agreement entered into by the Secretary (or the 
     Secretary and other Federal agencies) with, a council, or 
     association of councils, to carry out an area plan in a 
     designated area, including assistance provided for planning, 
     analysis, feasibility studies, training, education, and other 
     activities necessary to carry out the area plan.
       ``(6) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term by section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(7) Local unit of government.--The term `local unit of 
     government' means--
       ``(A) any county, city, town, township, parish, village, or 
     other general-purpose subdivision of a State; and
       ``(B) any local or regional special district or other 
     limited political subdivision of a State, including any soil 
     conservation district, school district, park authority, and 
     water or sanitary district.
       ``(8) Nonprofit organization.--The term `nonprofit 
     organization' means any organization that is--
       ``(A) described in section 501(c) of the Internal Revenue 
     Code of 1986; and
       ``(B) exempt from taxation under section 501(a) of the 
     Internal Revenue Code of 1986.
       ``(9) Planning process.--The term `planning process' means 
     actions taken by a council to develop and carry out an 
     effective area plan in a designated area, including 
     development of the area plan, goals, purposes, policies, 
     implementation activities, evaluations and reviews, and the 
     opportunity for public participation in the actions.
       ``(10) Project.--The term `project' means a project that is 
     carried out by a council to achieve any of the elements of an 
     area plan.
       ``(11) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(12) State.--The term `State' means--
       ``(A) any State;
       ``(B) the District of Columbia; or
       ``(C) any territory or possession of the United States.
       ``(13) Technical assistance.--The term `technical 
     assistance' means any service provided by the Secretary or 
     agent of the Secretary, including--
       ``(A) inventorying, evaluating, planning, designing, 
     supervising, laying out, and inspecting projects;
       ``(B) providing maps, reports, and other documents 
     associated with the services provided;
       ``(C) providing assistance for the long-term implementation 
     of area plans; and
       ``(D) providing services of an agency of the Department of 
     Agriculture to assist councils in developing and carrying out 
     area plans.

     ``SEC. 1529. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

       ``The Secretary shall establish a resource conservation and 
     development program under which the Secretary shall provide 
     technical assistance and financial assistance to councils to 
     develop and carry out area plans and projects in designated 
     areas--
       ``(1) to conserve and improve the use of land, develop 
     natural resources, and improve and enhance the social, 
     economic, and environmental conditions in primarily rural 
     areas of the United States; and
       ``(2) to encourage and improve the capability of State, 
     units of government, Indian tribes, nonprofit organizations, 
     and councils to carry out the purposes described in paragraph 
     (1).

     ``SEC. 1530. SELECTION OF DESIGNATED AREAS.

       ``The Secretary shall select designated areas for 
     assistance under this subtitle on the basis of the elements 
     of area plans.

     ``SEC. 1531. POWERS OF THE SECRETARY.

       ``In carrying out this subtitle, the Secretary may--
       ``(1) provide technical assistance to any council to assist 
     in developing and implementing an area plan for a designated 
     area;
       ``(2) cooperate with other departments and agencies of the 
     Federal Government, States, local units of government, local 
     Indian tribes, and local nonprofit organizations in 
     conducting surveys and inventories, disseminating 
     information, and developing area plans;
       ``(3) assist in carrying out an area plan approved by the 
     Secretary for any designated area by providing technical 
     assistance and financial assistance to any council; and
       ``(4) enter into agreements with councils in accordance 
     with section 1532.

     ``SEC. 1532. ELIGIBILITY; TERMS AND CONDITIONS.

       ``(a) Eligibility.--Technical assistance and financial 
     assistance may be provided by the Secretary under this 
     subtitle to any council to assist in carrying out a project 
     specified in an area plan approved by the Secretary only if--
       ``(1) the council agrees in writing--
       ``(A) to carry out the project; and
       ``(B) to finance or arrange for financing of any portion of 
     the cost of carrying out the project for which financial 
     assistance is not provided by the Secretary under this 
     subtitle;
       ``(2) the project is included in an area plan and is 
     approved by the council;
       ``(3) the Secretary determines that assistance is necessary 
     to carry out the area plan;
       ``(4) the project provided for in the area plan is 
     consistent with any comprehensive plan for the area;
       ``(5) the cost of the land or an interest in the land 
     acquired or to be acquired under the

[[Page S12899]]

     plan by any State, local unit of government, Indian tribe, or 
     local nonprofit organization is borne by the State, local 
     unit of government, Indian tribe, or local nonprofit 
     organization, respectively; and
       ``(6) the State, local unit of government, Indian tribe, or 
     local nonprofit organization participating in the area plan 
     agrees to maintain and operate the project.
       ``(b) Loans.--
       ``(1) In general.--Subject to paragraphs (2) and (3), a 
     loan made under this subtitle shall be made on such terms and 
     conditions as the Secretary may prescribe.
       ``(2) Term.--A loan for a project made under this subtitle 
     shall have a term of not more than 30 years after the date of 
     completion of the project.
       ``(3) Interest rate.--A loan made under this subtitle shall 
     bear interest at the average rate of interest paid by the 
     United States on obligations of a comparable term, as 
     determined by the Secretary of the Treasury.
       ``(c) Approval by Secretary.--Technical assistance and 
     financial assistance under this subtitle may not be made 
     available to a council to carry out an area plan unless the 
     area plan has been submitted to and approved by the 
     Secretary.
       ``(d) Withdrawal.--The Secretary may withdraw technical 
     assistance and financial assistance with respect to any area 
     plan if the Secretary determines that the assistance is no 
     longer necessary or that sufficient progress has not been 
     made toward developing or implementing the elements of the 
     area plan.
       ``(e) Use of Other Entities and Persons.--A council may use 
     another person or entity to assist in developing and 
     implementing an area plan and otherwise carrying out this 
     subtitle.

     ``SEC. 1533. RESOURCE CONSERVATION AND DEVELOPMENT POLICY 
                   ADVISORY BOARD.

       ``(a) Establishment.--The Secretary shall establish within 
     the Department of Agriculture a Resource Conservation and 
     Development Policy Advisory Board.
       ``(b) Composition.--
       ``(1) In general.--The Board shall be composed of at least 
     7 employees of the Department of Agriculture selected by the 
     Secretary.
       ``(2) Chairperson.--A member of the Board shall be 
     designated by the Secretary to serve as chairperson of the 
     Board.
       ``(c) Duties.--The Board shall advise the Secretary 
     regarding the administration of this subtitle, including the 
     formulation of policies for carrying out this subtitle.

     ``SEC. 1534. EVALUATION OF PROGRAM.

       ``(a) In General.--The Secretary, in consultation with 
     councils, shall evaluate the program established under this 
     subtitle to determine whether the program is effectively 
     meeting the needs of, and the purposes identified by, States, 
     units of government, Indian tribes, nonprofit organizations, 
     and councils participating in, or served by, the program.
       ``(b) Report.--Not later than June 30, 2005, the Secretary 
     shall submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report describing the results of 
     the evaluation, together with any recommendations of the 
     Secretary for continuing, terminating, or modifying the 
     program.

     ``SEC. 1535. LIMITATION ON ASSISTANCE.

       ``In carrying out this subtitle, the Secretary shall 
     provide technical assistance and financial assistance with 
     respect to not more than 450 active designated areas.

     ``SEC. 1536. SUPPLEMENTAL AUTHORITY OF THE SECRETARY.

       ``The authority of the Secretary under this subtitle to 
     assist councils in the development and implementation of area 
     plans shall be supplemental to, and not in lieu of, any 
     authority of the Secretary under any other provision of law.

     ``SEC. 1537. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be such sums as 
     are necessary to carry out this subtitle.
       ``(b) Loans.--The Secretary shall not use more than 
     $15,000,000 of any funds made available for a fiscal year to 
     make loans under this subtitle.
       ``(c) Availability.--Funds appropriated to carry out this 
     subtitle shall remain available until expended.''.

     SEC. 217. WILDLIFE HABITAT INCENTIVE PROGRAM.

       (a) In General.--Chapter 5 of subtitle D of title XII of 
     the Food Security Act of 1985 (16 U.S.C. 3839bb et seq.) is 
     amended to read as follows:

                ``CHAPTER 5--OTHER CONSERVATION PROGRAMS

     ``SEC. 1240M. WILDLIFE HABITAT INCENTIVE PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Endangered species.--The term `endangered species' 
     has the meaning given the term in section 3 of the Endangered 
     Species Act of 1973 (16 U.S.C. 1532).
       ``(2) Program.--The term `program' means the wildlife 
     habitat incentive program established under subsection (b).
       ``(3) Sensitive species.--The term `sensitive species' has 
     the meaning given the term `candidate species' within the 
     meaning of section 424.02(b) of title 50, Code of Federal 
     Regulations (or a successor regulation) or a species which 
     may become threatened or endangered if conservation actions 
     are not taken to conserve that species.
       ``(4) Threatened species.--The term `threatened species' 
     has the meaning given the term in section 3 of the Endangered 
     Species Act of 1973 (16 U.S.C. 1532).
       ``(b) Establishment.--In consultation with the State 
     technical committees established under section 1261 of the 
     Food Security Act of 1985 (16 U.S.C. 3861), the Secretary 
     shall establish the wildlife habitat incentive program.
       ``(c) Cost-Share Payments.--
       ``(1) In general.--Under the program, the Secretary shall 
     make cost-share payments, and provide technical assistance, 
     to landowners of eligible land to develop and enhance 
     wildlife habitat approved by the Secretary.
       ``(2) Endangered and threatened species.--Of the funds made 
     available to carry out this subsection, the Secretary shall 
     use at least 15 percent to make cost-share payments to carry 
     out projects and activities relating to endangered species, 
     threatened species, and sensitive species.
       ``(d) Pilot Program for Essential Plant and Animal 
     Habitat.--Under the program, the Secretary may establish 
     procedures to use not more than 15 percent of funds made 
     available to acquire and enroll eligible land for periods of 
     at least 15 years to protect and restore essential (as 
     determined by the Secretary) plant and animal habitat.
       ``(e) Eligible Parties.--After consulting, to the maximum 
     extent practicable, with State wildlife officials, the 
     Secretary may provide grants under this section to 
     individuals and nonprofit organizations that lease public 
     land.
       ``(f) Nexus to Private Land.--Funds from a grant provided 
     under subsection (e) may be used, as determined by the 
     Secretary, for a purpose on public land if the purpose 
     benefits private land.
       ``(g) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use to carry out this 
     section (including the provision of technical assistance), to 
     remain available until expended--
       ``(1) $50,000,000 for fiscal year 2002;
       ``(2) $225,000,000 for fiscal year 2003;
       ``(3) $275,000,000 for fiscal year 2004;
       ``(4) $325,000,000 for fiscal years 2005;
       ``(5) $375,000 for fiscal year 2006; and
       ``(6) $50,000 for fiscal year 2007.''.

     ``SEC. 1240N. WATERSHED RISK REDUCTION.

       ``(a) In General.--The Secretary, acting through the 
     Natural Resources Conservation Service (referred to in this 
     section as the `Secretary'), in cooperation with landowners 
     and land users, may carry out such projects and activities 
     (including the purchase of floodplain easements for runoff 
     retardation and soil erosion prevention) as the Secretary 
     determines to be necessary to safeguard lives and property 
     from floods, drought, and the products of erosion on any 
     watershed in any case in which fire, flood, or any other 
     natural occurrence has caused, is causing, or may cause a 
     sudden impairment of that watershed.
       ``(b) Priority.--In carrying out this section, the 
     Secretary shall give priority to any project or activity 
     described in subsection (a) that is carried out on a 
     floodplain adjacent to a major river, as determined by the 
     Secretary.
       ``(c) Prohibition on Duplicative Funds.--No project or 
     activity under subsection (a) that is carried out using funds 
     made available under this section may be carried out using 
     funds made available under any Federal disaster relief 
     program administered by the Secretary relating to floods.
       ``(d) Funding.--There is authorized to be appropriated to 
     carry out this section $15,000,000 for each of fiscal years 
     2002 through 2006.

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

       ``(a) In General.--The Secretary, in consultation with the 
     Great Lakes Commission created by Article IV of the Great 
     Lakes Basin Compact (82 Stat. 415) and in cooperation with 
     the Administrator of the Environmental Protection Agency and 
     the Secretary of the Army, may carry out the Great Lakes 
     basin program for soil erosion and sediment control (referred 
     to in this section as the `program').
       ``(b) Assistance.--In carrying out the program, the 
     Secretary may--
       ``(1) provide project demonstration grants, provide 
     technical assistance, and carry out information and education 
     programs to improve water quality in the Great Lakes basin by 
     reducing soil erosion and improving sediment control; and
       ``(2) provide a priority for projects and activities that 
     directly reduce soil erosion or improve sediment control.
       ``(c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2002 through 2006.

     ``SEC. 1240P. CONSERVATION OF PRIVATE GRAZING LAND.

       ``(a) Findings.--Congress finds that--
       ``(1) private grazing land constitutes nearly \1/2\ of the 
     non-Federal land of the United States and is basic to the 
     environmental, social, and economic stability of rural 
     communities;
       ``(2) private grazing land contains a complex set of 
     interactions among soil, water, air, plants, and animals;
       ``(3) grazing land constitutes the single largest watershed 
     cover type in the United

[[Page S12900]]

     States and contributes significantly to the quality and 
     quantity of water available for all of the many uses of the 
     land;
       ``(4) private grazing land constitutes the most extensive 
     wildlife habitat in the United States;
       ``(5) private grazing land can provide opportunities for 
     improved nutrient management from land application of animal 
     manures and other by-product nutrient resources;
       ``(6) landowners and managers of private grazing land need 
     to continue to recognize conservation problems when the 
     problems arise and receive sound technical assistance to 
     improve or conserve grazing land resources to meet ecological 
     and economic demands;
       ``(7) new science and technology must continually be made 
     available in a practical manner so owners and managers of 
     private grazing land may make informed decisions concerning 
     vital grazing land resources;
       ``(8) agencies of the Department with private grazing land 
     responsibilities are the agencies that have the expertise and 
     experience to provide technical assistance, education, and 
     research to owners and managers of private grazing land for 
     the long-term productivity and ecological health of grazing 
     land;
       ``(9) although competing demands on private grazing land 
     resources are greater than ever before, assistance to private 
     owners and managers of private grazing land is limited and 
     does not meet the demand and basic need for adequately 
     sustaining or enhancing the private grazing land resources; 
     and
       ``(10) private grazing land can be enhanced to provide many 
     benefits to all citizens of the United States through 
     voluntary cooperation among owners and managers of the land, 
     local conservation districts, and the agencies of the 
     Department responsible for providing assistance to owners and 
     managers of land and to conservation districts.
       ``(b) Purpose.--The purpose of this section is to authorize 
     the Secretary to provide a coordinated technical, 
     educational, and related assistance program to conserve and 
     enhance private grazing land resources and provide related 
     benefits to all citizens of the United States by--
       ``(1) establishing a coordinated and cooperative Federal, 
     State, and local grazing conservation program for management 
     of private grazing land;
       ``(2) strengthening technical, educational, and related 
     assistance programs that provide assistance to owners and 
     managers of private grazing land;
       ``(3) conserving and improving wildlife habitat on private 
     grazing land;
       ``(4) conserving and improving fish habitat and aquatic 
     systems through grazing land conservation treatment;
       ``(5) protecting and improving water quality;
       ``(6) improving the dependability and consistency of water 
     supplies;
       ``(7) identifying and managing weed, noxious weed, and 
     brush encroachment problems on private grazing land; and
       ``(8) integrating conservation planning and management 
     decisions by owners and managers of private grazing land, on 
     a voluntary basis.
       ``(c) Definition of Private Grazing Land.--In this section, 
     the term `private grazing land land' means rangeland, 
     pastureland, grazed forest land, hay land, and any other non-
     federally owned land that is--
       ``(1) private;
       ``(2) owned by a State; or
       ``(3) under the jurisdiction of an Indian tribe .
       ``(d) Private Grazing Land Conservation Assistance.--
       ``(1) In general.--Subject to the availability of 
     appropriations for this section, the Secretary shall 
     establish a voluntary program to provide technical, 
     educational, and related assistance to owners and managers of 
     private grazing land and public agencies, through local 
     conservation districts, to enable the landowners, managers, 
     and public agencies to voluntarily carry out activities that 
     are consistent with this section, including--
       ``(A) maintaining and improving private grazing land and 
     the multiple values and uses that depend on private grazing 
     land;
       ``(B) implementing grazing land management technologies;
       ``(C) managing resources on private grazing land, 
     including--
       ``(i) planning, managing, and treating private grazing land 
     resources;
       ``(ii) ensuring the long-term sustainability of private 
     grazing land resources;
       ``(iii) harvesting, processing, and marketing private 
     grazing land resources; and
       ``(iv) identifying and managing weed, noxious weed, and 
     brush encroachment problems;
       ``(D) protecting and improving the quality and quantity of 
     water yields from private grazing land;
       ``(E) maintaining and improving wildlife and fish habitat 
     on private grazing land;
       ``(F) enhancing recreational opportunities on private 
     grazing land;
       ``(G) maintaining and improving the aesthetic character of 
     private grazing land; and
       ``(H) identifying the opportunities and encouraging the 
     diversification of private grazing land enterprises.
       ``(2) Program elements.--
       ``(A) Funding.--Funds may be used to carry out this section 
     only if the funds are provided through a specific line-item 
     in the annual appropriations for the Natural Resources 
     Conservation Service.
       ``(B) Technical assistance and education.--Personnel of the 
     Department of Agriculture trained in pasture and range 
     management shall be made available under the program to 
     deliver and coordinate technical assistance and education to 
     owners and managers of private grazing land, at the request 
     of the owners and managers.
       ``(e) Grazing Technical Assistance Self-Help.--
       ``(1) Findings.--Congress finds that--
       ``(A) there is a severe lack of technical assistance for 
     farmers and ranchers that graze livestock;
       ``(B) Federal budgetary constraints preclude any 
     significant expansion, and may force a reduction of, levels 
     of technical support; and
       ``(C) farmers and ranchers have a history of cooperatively 
     working together to address common needs in the promotion of 
     their products and in the drainage of wet areas through 
     drainage districts.
       ``(2) Establishment of grazing demonstration districts.--In 
     accordance with paragraph (3), the Secretary may establish 2 
     grazing management demonstration districts on the 
     recommendation of the grazing land conservation initiative 
     steering committee.
       ``(3) Procedure.--
       ``(A) Proposal.--Within a reasonable time after the 
     submission of a proposal of an organization of farmers or 
     ranchers engaged in grazing in a district, subject to 
     subparagraphs (B) through (F), the Secretary establish a 
     grazing management district in accordance with the proposal.
       ``(B) Funding.--The terms and conditions of the funding and 
     operation of the grazing management district shall be 
     proposed by the farmers and ranchers engaged in grazing in 
     the district.
       ``(C) Approval.--The Secretary shall approve the proposal 
     if the Secretary determines that the proposal--
       ``(i) is reasonable;
       ``(ii) will promote sound grazing practices; and
       ``(iii) contains provisions similar to the provisions 
     contained in the beef promotion and research order issued 
     under section 4 of the Beef Research and Information Act (7 
     U.S.C. 2903) in effect on April 4, 1996.
       ``(D) Area included.--The area proposed to be included in a 
     grazing management district shall be determined by the 
     Secretary on the basis of the proposal submitted by farmers 
     or ranchers under subparagraph (A).
       ``(E) Authorization.--The Secretary may use authority under 
     the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), 
     reenacted with amendments by the Agricultural Marketing 
     Agreement Act of 1937, to operate, on a demonstration basis, 
     a grazing management district.
       ``(F) Activities.--The activities of a grazing management 
     district shall be scientifically sound activities, as 
     determined by the Secretary in consultation with a technical 
     advisory committee composed of farmers, ranchers, and 
     technical experts.
       ``(f) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $60,000,000 for 
     each of fiscal years 2002 through 2006.''.
       (b) Conforming Amendment.--Section 386 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 
     2005b) is repealed.''.

     SEC. 218. FARMLAND PROTECTION PROGRAM.

       (a) In General.--Chapter 2 of the Food Security Act of 1985 
     (as added by section 201) is amended by adding at the end the 
     following:

              ``Subchapter B--Farmland Protection Program

     ``SEC. 1238H. DEFINITIONS.

       ``In this subchapter:
       ``(1) Eligible land.--
       ``(A) In general.--The term `eligible land' means land on a 
     farm or ranch that--
       ``(i)(I) has prime, unique, or other productive soil; or
       ``(II) contains historical or archaeological resources; and
       ``(ii) is subject to a pending offer for purchase from--

       ``(I) any agency of any State or local government or an 
     Indian tribe (including a farmland protection board or land 
     resource council established under State law); or
       ``(II) any organization that--

       ``(aa) 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), or (iii) of section 170(h)(4)(A) of the 
     Internal Revenue Code of 1986;
       ``(bb) is an organization described in section 501(c)(3) of 
     that Code that is exempt from taxation under section 501(a) 
     of that Code; or
       ``(cc) is described in section 509(a)(3), and is controlled 
     by an organization described in section 509(a)(2), of that 
     Code.
       ``(B) Inclusions.--The term `eligible land' includes--
       ``(i) cropland;
       ``(ii) rangeland;
       ``(iii) grassland;
       ``(iv) pasture land; and
       ``(iii) forest land that is part of an agricultural 
     operation, as determined by the Secretary.
       ``(2) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).

[[Page S12901]]

       ``(3) Program.--The term `program' means the farmland 
     protection program established under section 1238I(a).

     ``SEC. 1238I. FARMLAND PROTECTION.

       ``(a) In General.--The Secretary shall establish and carry 
     out a farmland protection program under which the Secretary 
     shall purchase conservation easements or other interests in 
     eligible land for the purpose of protecting topsoil by 
     limiting nonagricultural uses of the land.
       ``(b) Conservation Plan.--Any highly erodible cropland for 
     which a conservation easement or other interest is purchased 
     under this subchapter shall be subject to the requirements of 
     a conservation plan that requires, at the option of the 
     Secretary, the conversion of the cropland to less intensive 
     uses.

     ``SEC. 1238J. MARKET VIABILITY PROGRAM.

       ``For each year for which funds are made available to carry 
     out this subchapter, the Secretary may use not more than 
     $10,000,000 to provide matching market viability grants and 
     technical assistance to farm and ranch operators that 
     participate in the program.''.
       (b) Funding.--Section 1241 of the Food Security Act of 1985 
     (16 U.S.C. 3841) (as amended by section 202) is amended by 
     adding at the end the following:
       ``(d) Farmland Protection Program.--
       ``(1) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use to carry out subchapter 
     B of chapter 2 (including the provision of technical 
     assistance), to remain available until expended--
       ``(1) $150,000,000 in fiscal year 2002;
       ``(2) $250,000,000 in fiscal year 2003;
       ``(3) $400,000,000 in fiscal year 2004;
       ``(4) $450,000,000 in fiscal year 2005;
       ``(5) $500,000,000 in fiscal year 2006; and
       ``(6) $100,000,000 in fiscal year 2007.''
       ``(2) Cost sharing.--
       ``(A) Farmland protection.--
       ``(i) In general.--The share of the cost of purchasing a 
     conservation easement or other interest described in section 
     1238I(a) provided under this subsection shall not exceed 50 
     percent of the appraised fair market value of the 
     conservation easement or other interest.
       ``(ii) State and local contributions.--In a case in which a 
     State or local government purchases an easement under section 
     1238I(a), not more than 25 percent of the share of the cost 
     of the easement contributed by the State or local government 
     may be provided--

       ``(I) by a private landowner; or
       ``(II) in the form of in-kind goods or services.

       ``(B) Market viability contributions.--As a condition of 
     receiving a grant under section 1238J(a), a grantee shall 
     provide funds in an amount equal to the amount of the 
     grant.''.
       (c) Conforming Amendment.--
       (1) In general.--Section 388 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (16 U.S.C. 3830 note) is 
     repealed.
       (2) Effect on contracts.--The amendment made by paragraph 
     (1) shall have no effect on any contract entered into under 
     section 388 of the Federal Agriculture Improvement and Reform 
     Act of 1996 (16 U.S.C. 3830 note) that is in effect as of the 
     date of enactment of this Act.

     SEC. 219. EXPANSION OF STATE MARKETING PROGRAMS.

       (a) In General.--Section 204(b) of the Agricultural 
     Marketing Act of 1946 (7 U.S.C. 1623) is amended by striking 
     ``such sums as he may deem appropriate'' and inserting 
     ``$10,000,000 from the Commodity Credit Corporation for each 
     of fiscal years 2003 through 2006''.
       (b) Market Development Grants.--Section 203(e)(1) of the 
     Agricultural Marketing Act of 1964 (7 U.S.C. 1622(e)(1)) is 
     amended by adding at the end the following: ``The Secretary 
     shall transfer to State departments of agriculture and other 
     State marketing offices at least 10 percent of the funds 
     appropriated for a fiscal year for this subsection to 
     facilitate the development of local and regional markets for 
     agricultural products, including direct farm-to-consumer 
     markets.''.
       (c) Termination of Authority.--Subtitle A of the 
     Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 209. TERMINATION OF AUTHORITY.

       ``The authority of the Secretary of Agriculture to make 
     funds available under section 204, and to otherwise carry out 
     this subtitle, terminates on October 1, 2006.''.

     SEC. 220. GRASSLAND RESERVE PROGRAM.

       Chapter 2 of the Food Security Act of 1985 (as amended by 
     section 218) is amended by adding at the end the following:

               ``Subchapter C--Grassland Reserve Program

     ``SEC. 1238N. GRASSLAND RESERVE PROGRAM.

       ``(a) Establishment.--The Secretary, acting through the 
     Natural Resource Conservation Service, shall establish a 
     grassland reserve program (referred to in this subchapter as 
     the `program') to assist owners in restoring and protecting 
     eligible land described in subsection (c).
       ``(b) Enrollment Conditions.--
       ``(1) In general.--The Secretary shall enroll in the 
     program, from willing owners, not less than--
       ``(A) 100 contiguous acres of land west of the 98th 
     meridian; or
       ``(B) except as provided in paragraph (2), 40 contiguous 
     acres of land east of the 98th meridian.
       ``(2) Maximum enrollment.--The total number of acres 
     enrolled in the program shall not exceed 2,000,000 acres, of 
     which not more than 500,000 acres shall be available for 
     enrollment of tracts of native grassland of 40 acres or less.
       ``(3) Methods of enrollment.--The Secretary shall enroll 
     land in the program through--
       ``(A) permanent easements or 30-year easements;
       ``(B) in a State that imposes a maximum duration for such 
     an easement, an easement for the maximum duration allowed 
     under State law; or
       ``(C) a 30-year rental agreement.
       ``(c) Eligible Land.--Land shall be eligible to be enrolled 
     in the program if the Secretary determines that the land is 
     private land that is--
       ``(1) natural grassland (including prairie and land that 
     contains shrubs or forb) that is indigenous to the locality;
       ``(2) land that--
       ``(A) is located in an area that has been historically 
     dominated by natural grassland; and
       ``(B) has potential to serve as habitat for animal or plant 
     populations of significant ecological value if the land is 
     restored to a natural condition; or
       ``(3) land that is incidental to land described in 
     paragraph (1) or (2), if the incidental land is determined by 
     the Secretary to be necessary for the efficient 
     administration of an easement.

     ``SEC. 1238O. EASEMENTS AND AGREEMENTS.

       ``(a) In General.--To be eligible to enroll land in the 
     program, the owner of the land shall enter into an agreement 
     with the Secretary--
       ``(1) if the agreement is for an easement--
       ``(A) to grant an easement that applies to the land to the 
     Secretary;
       ``(B) to create and record an appropriate deed restriction 
     in accordance with applicable State law to reflect the 
     easement;
       ``(C) to provide a written statement of consent to the 
     easement signed by persons holding a security interest or any 
     vested interest in the land;
       ``(D) to provide proof of unencumbered title to the 
     underlying fee interest in the land that is the subject of 
     the easement; and
       ``(E) to comply with the terms of the easement and 
     restoration agreement; and
       ``(2) if the agreement is for a rental agreement described 
     in section 1238N(b)(3)(C), that specifies the terms and 
     conditions applicable to--
       ``(A) the Secretary; and
       ``(B) the owner of the land.
       ``(b) Terms of Easement of Rental Agreement.--An easement 
     or rental agreement under subsection (a) shall--
       ``(1) permit--
       ``(A) grazing on the land in a manner that is consistent 
     with maintaining the viability of natural grass, shrub, forb, 
     and wildlife species indigenous to that locality;
       ``(B) haying (including haying for seed production) or 
     mowing, except during the nesting and brood-rearing seasons 
     for birds in the area that are in significant decline, as 
     determined by the Natural Resources Conservation Service 
     State conservationist, or are protected Federal or State law; 
     and
       ``(C) fire rehabilitation, construction of fire breaks, and 
     fences (including placement of the posts necessary for 
     fences);
       ``(2) prohibit--
       ``(A) the production of row crops, fruit trees, vineyards, 
     or any other agricultural commodity that requires breaking 
     the soil surface; and
       ``(B) except as permitted under paragraph (1)(C), the 
     conduct of any other activities that would disturb the 
     surface of the land covered by the easement, including--
       ``(i) plowing; and
       ``(ii) disking; and
       ``(3) include such additional provisions as the Secretary 
     determines are appropriate to carry out this subchapter or to 
     facilitate the administration of this subchapter.
       ``(c) Evaluation and Ranking of Easement and Rental 
     Agreement Applications.--
       ``(1) In general.--The Secretary, in conjunction with State 
     technical committees, shall establish criteria to evaluate 
     and rank applications for easements and rental agreements 
     under this subchapter.
       ``(2) Criteria.--In establishing the criteria, the 
     Secretary shall emphasize support for grazing operations, 
     plant and animal biodiversity, and grassland and land 
     containing shrubs or forb under the greatest threat of 
     conversion.
       ``(d) Restoration Agreements.--
       ``(1) In general.--The Secretary shall prescribe the terms 
     of a restoration agreement by which grassland and shrubland 
     subject to an easement or rental agreement entered into under 
     the program shall be restored.
       ``(2) Requirements.--The restoration agreement shall 
     describe the respective duties of the owner and the Secretary 
     (including paying the share of the cost of restoration 
     provided by the Secretary and the provision of technical 
     assistance).
       ``(e) Violations.--
       ``(1) In general.--On the violation of the terms or 
     conditions of an easement, rental agreement, or restoration 
     agreement entered into under this section--
       ``(A) the easement or rental agreement shall remain in 
     force; and
       ``(B) the Secretary may require the owner to refund all or 
     part of any payments received by the owner under this 
     subchapter,

[[Page S12902]]

     with interest on the payments as determined appropriate by 
     the Secretary.
       ``(2) Periodic inspections.--
       ``(A) In general.--After providing notice to the owner, the 
     Secretary shall conduct periodic inspections of land subject 
     to easements and rental agreements under this subchapter to 
     ensure compliance with the terms of the easement, rental 
     agreement, and applicable restoration agreement.
       ``(B) Limitation.--The Secretary may not prohibit the 
     owner, or a representative of the owner, from being present 
     during a periodic inspection.

     ``SEC. 1238P. DUTIES OF SECRETARY.

       ``(a) In General.--In return for the granting of an 
     easement, or the execution of a rental agreement, by an owner 
     under this subchapter, the Secretary shall, in accordance 
     with this section--
       ``(1) make easement or rental agreement payments;
       ``(2) pay a share of the cost of restoration; and
       ``(3) provide technical assistance to the owner.
       ``(b) Payment Schedule.--
       ``(1) Easement payments.--
       ``(A) Amount.--In return for the granting of an easement by 
     an owner under this subchapter, the Secretary shall make 
     easement payments to the owner in an amount equal to--
       ``(i) in the case of a permanent easement, the fair market 
     value of the land less the grazing value of the land 
     encumbered by the easement; and
       ``(ii) in the case of a 30-year easement or an easement for 
     the maximum duration allowed under applicable State law, 30 
     percent of the fair market value of the land less the grazing 
     value of the land for the period during which the land is 
     encumbered by the easement.
       ``(B) Schedule.--Easement payments may be provided in not 
     less than 1 payment nor more than 10 annual payments of equal 
     or unequal amount, as agreed to by the Secretary and the 
     owner.
       ``(2) Rental agreement payments.--
       ``(A) Amount.--If an owner enters into a 30-year rental 
     agreement authorized under section 1238N(b)(3)(C), the 
     Secretary shall make 30 annual rental payments to the owner 
     in an amount that equals, to the maximum extent practicable, 
     the 30-year easement payment amount under paragraph 
     (1)(A)(ii).
       ``(B) Assessment.--Not less than once every 5 years 
     throughout the 30-year rental period, the Secretary shall 
     assess whether the value of the rental payments under 
     subparagraph (A) equals, to the maximum extent practicable, 
     the total amount of 30-year easement payments as of the date 
     of the assessment.
       ``(C) Adjustment.--If on completion of the assessment under 
     subparagraph (B), the Secretary determines that the rental 
     payments do not equal, to the maximum extent practicable, the 
     value of payments under a 30-year easement, the Secretary 
     shall adjust the amount of the remaining payments to equal, 
     to the maximum extent practicable, the value of a 30-year 
     easement over the entire 30-year rental period.
       ``(c) Cost of Restoration.--The Secretary shall make 
     payments to the owner of not more than 75 percent of the cost 
     of carrying out measures and practices necessary to restore 
     grassland and shrubland functions and values.
       ``(d) Technical Assistance.--The Secretary shall provide 
     owners with technical assistance to execute easement 
     documents and restore the grassland and shrubland.
       ``(e) Payments to Others.--If an owner that is entitled to 
     a payment under this subchapter 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.
       ``(f) Other Payments.--Easement or rental agreement 
     payments received by an owner under this subchapter shall be 
     in addition to, and not affect, the total amount of payments 
     that the owner is otherwise eligible to receive under other 
     Federal laws (except for funds provided to achieve similar 
     purposes).
       ``(g) Regulations.--Not later than 180 days after the date 
     of enactment of this subchapter, the Secretary shall 
     promulgate such regulations as are necessary to carry out 
     this subchapter.''.
       (b) Funding.--Section 1241 of the Food Security Act of 1985 
     (16 U.S.C. 3841) (as amended by section 219(b)) is amended by 
     adding at the end the following:
       ``(e) Grassland Reserve Program.--The Secretary shall use 
     such sums of the Commodity Credit Corporation as are 
     necessary to carry out subchapter C of chapter 2 (including 
     the provision of technical assistance).''.

     SEC. 221. STATE TECHNICAL COMMITTEES.

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

                ``Subtitle G--State Technical Committees

     ``SEC. 1261. ESTABLISHMENT.

       ``(a) In General.--The Secretary shall establish in each 
     State a technical committee to assist the Secretary in the 
     technical considerations relating to implementation of any 
     private land conservation program administered by the 
     Secretary.
       ``(b) Standards.--Not later than 180 days after the date of 
     enactment of the Agriculture, Conservation, and Rural 
     Enhancement Act of 2001, the Secretary shall develop 
     standards to be used by each State technical committee in the 
     development of technical guidelines under section 1262(b) for 
     the implementation of the conservation programs under this 
     title.
       ``(c) Composition.--Each State technical committee 
     established under subsection (a) shall be composed of 
     professional resource managers that represent a variety of 
     disciplines in the soil, water, wetland, forest, and wildlife 
     sciences, including representatives from among--
       ``(1) the Natural Resources Conservation Service (a 
     representative of which shall serve as Chair of the 
     Committee);
       ``(2) the Farm Service Agency;
       ``(3) the Forest Service;
       ``(4) the Extension Service;
       ``(5) the Fish and Wildlife Service;
       ``(6) such State departments and agencies as the Secretary 
     determines to be appropriate, including--
       ``(A) a State fish and wildlife agency;
       ``(B) a State forester or equivalent State official;
       ``(C) a State water resources agency;
       ``(D) a State department of agriculture;
       ``(E) a State soil conservation agency;
       ``(F) a State association of soil and water conservation 
     districts; and
       ``(G) land grant colleges and universities;
       ``(7) other individuals or agency personnel with expertise 
     in soil, water, wetland, and wildlife or forest management as 
     the Secretary determines to be appropriate;
       ``(8) agricultural producers with demonstrable conservation 
     expertise;
       ``(9) nonprofit organizations with demonstrable 
     conservation or forestry expertise;
       ``(10) persons knowledgeable about conservation or forestry 
     techniques; and
       ``(11) agribusinesses.

     ``SEC. 1262. RESPONSIBILITIES.

       ``(a) Information.--
       ``(1) Provision.--
       ``(A) In general.--Each State technical committee 
     established under section 1261 shall meet regularly to 
     provide information, analyses, and recommendations to the 
     Secretary.
       ``(B) Manner; form.--Information, analyses, and 
     recommendations described in subparagraph (A) shall--
       ``(i) be provided in writing, in a manner that assists the 
     Secretary in determining matters of fact, technical merit, or 
     scientific question; and
       ``(ii) reflect the best professional information and 
     judgment of the committee.
       ``(2) Coordination.--The Secretary shall coordinate 
     activities conducted under this section with activities 
     conducted under section 1628 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5831).
       ``(3) Public participation.--Each State technical committee 
     shall--
       ``(A) provide public notice of, and permit public 
     attendance at, meetings considering issues of concern related 
     to any program under this title; and
       ``(B) distribute meeting minutes to each person attending a 
     meeting described in subparagraph (A).
       ``(4) Communication.--Each State conservationist shall 
     communicate regularly with members of the State technical 
     committee concerning status of action on recommendations of 
     the committee.
       ``(b) Other Duties.--Each State technical committee shall 
     provide assistance and offer recommendations with respect to 
     the technical aspects of--
       ``(1) wetland protection, restoration, and mitigation 
     requirements;
       ``(2) criteria to be used in evaluating bids for enrollment 
     of environmentally-sensitive land in the conservation reserve 
     program established under subchapter B of chapter 1;
       ``(3) guidelines for haying or grazing and the control of 
     weeds to protect nesting wildlife on designated acreage 
     relating to--
       ``(A) highly erodible land conservation under subtitle B;
       ``(B) wetland conservation under subtitle C; or
       ``(C) other conservation requirements
       ``(4) addressing common weed and pest problems and programs 
     to control weeds and pests found on acreage enrolled in the 
     conservation reserve program;
       ``(5) guidelines for planting perennial cover for water 
     quality and wildlife habitat improvement on designated land;
       ``(6) establishing criteria and priorities for State 
     initiatives under the environmental quality incentives 
     program under chapter 4 of subtitle D;
       ``(7) establishing State and local conservation priorities 
     under the conservation security program under subchapter A of 
     chapter 2 of subtitle D;
       ``(8) establishing and maintaining natural resource 
     indicators and conservation program monitoring and evaluation 
     systems;
       ``(9) developing conservation program education and 
     outreach activities;
       ``(10) evaluating innovative practices and systems under 
     consideration for inclusion in the field office technical 
     guides; and
       ``(11) other matters, as determined to be appropriate by 
     the Secretary.
       ``(c) Authority.--
       ``(1) In general.--Each State technical committee 
     established under section 1261 shall--
       ``(A) serve in an advisory capacity; and
       ``(B) have no implementation or enforcement authority.

[[Page S12903]]

       ``(2) Consideration by secretary.--In carrying out any 
     program under this title, the Secretary shall give strong 
     consideration to the recommendations of a State technical 
     committee (including factual, technical, or scientific 
     findings and recommendations relating to areas in which the 
     State technical committee bears responsibility).
       ``(d) FACA Requirements.--A State technical committee 
     established under section 1261 shall be exempt from the 
     Federal Advisory Committee Act (5 U.S.C. App.).
       ``(e) Advisory Subcommittees.--
       ``(1) In general.--Any State or local work group, task 
     force, or other advisory body authorized by any Federal law 
     (including a regulation) to advise the Secretary on issues 
     that are within the areas of responsibility of a State 
     technical committee established under section 1261 shall be 
     considered to be a subcommittee of the State technical 
     committee.
       ``(2) Composition.--A person eligible to serve on a State 
     technical committee under section 1261(c) shall also be 
     eligible to serve on 1 or more subcommittees of a State 
     technical committee.
       ``(3) Local working groups.--A local working group shall be 
     considered to be a subcommittee of a State technical 
     committee established under section 1261.''.

     SEC. 222. USE OF SYMBOLS, SLOGANS, AND LOGOS.

       Section 356 of the Federal Agriculture Improvement Act of 
     1996 (16 U.S.C. 5801 et seq.) is amended--
       (1) in subsection (c)--
       (A) by redesignating paragraphs (4) through (7) as 
     paragraphs (5) through (8), respectively; and
       (B) by inserting after paragraph (3) the following:
       ``(4) on the written approval of the Secretary, to use, 
     license, or transfer symbols, slogans, and logos of the 
     Department;''; and
       (2) in subsection (d), by adding at the end the following:
       ``(3) Use of symbols, slogans, and logos.--
       ``(A) In general.--The Secretary may authorize the 
     Foundation to use, license, or transfer symbols, slogans, and 
     logos of the Department.
       ``(B) Income.--
       ``(i) In general.--All revenue received by the Foundation 
     from the use, licensing, or transfer of symbols, slogans, and 
     logos of the Department shall be transferred to the 
     Secretary.
       ``(ii) Conservation operations.--The Secretary shall 
     transfer all revenue received under clause (i) to the account 
     within the Natural Resources Conservation Service that is 
     used to carry out conservation operations.''.

                      Subtitle C--Organic Farming

     SEC. 231. ORGANIC AGRICULTURE RESEARCH TRUST FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a fund to be known as the ``Organic 
     Agriculture Research Trust Fund'' (referred to in this 
     section as the ``Fund''), consisting of--
       (1) such amounts as are transferred to the Fund under 
     subsection (b); and
       (2) any interest earned on investment of amounts in the 
     Fund under subsection (d).
       (b) Transfer to Fund.--During fiscal year 2003, the 
     Commodity Credit Corporation shall transfer $50,000,000 to 
     the Fund, which shall remain available until expended.
       (c) Expenditures From Fund.--On request by the Secretary of 
     Agriculture, the Secretary of the Treasury shall transfer 
     from the Fund to the Secretary of Agriculture such amounts as 
     the Secretary of Agriculture determines are necessary--
       (1) to carry out section 1672B of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5925b); and
       (2) for the board of trustees of the National Organic 
     Research Endowment Institute established under section 232(a) 
     (referred to in this subtitle as the ``Institute'') to 
     implement a program of organic products research designed by 
     the Institute and approved by the Secretary.
       (d) Investment of Amounts.--
       (1) In general.--
       (A) Investment.--The Secretary of the Treasury shall invest 
     such portion of the Fund as is not, in the judgment of the 
     Secretary of the Treasury, required to meet current 
     withdrawals.
       (B) Types of investments.--Investments may be made only 
     in--
       (i) an obligation of the United States or an agency of the 
     United States;
       (ii) a general obligation of a State or a political 
     subdivision of a State;
       (iii) an interest-bearing account or certificate of deposit 
     of a bank that is a member of the Federal Reserve System; or
       (iv) an obligation fully guaranteed as to principal and 
     interest by the United States.
       (2) Acquisition of obligations.--For the purpose of 
     investments under paragraph (1), obligations may be 
     acquired--
       (A) on original issue at the issue price; or
       (B) by purchase of outstanding obligations at the market 
     price.
       (3) Sale of obligations.--Any obligation acquired by the 
     Fund may be sold by the Secretary of the Treasury at the 
     market price.
       (4) Credits to fund.--The interest and dividends on, and 
     the proceeds from the sale or redemption of, any obligations, 
     interest-bearing accounts, or certificates of deposit held in 
     the Fund shall be credited to and form a part of the Fund.

     SEC. 232. ESTABLISHMENT OF NATIONAL ORGANIC RESEARCH 
                   ENDOWMENT INSTITUTE.

       (a) In General.--The Secretary of Agriculture, in 
     consultation with the National Organic Standards Board, shall 
     establish in the Department of Agriculture an institute to be 
     known as the ``National Organic Research Endowment 
     Institute'' (referred to in this section as the 
     ``Institute'').
       (b) Board of Trustees.--The Institute shall be headed by a 
     board of trustees composed of the members of the National 
     Organic Promotion and Research Board.
       (c) Duties.--The duties of the Institute shall be to aid 
     the organically grown and processed agricultural commodities 
     industry through the development and implementation of a plan 
     for organic products research described in subsection (d)(1).
       (d) Implementation of Plan.--
       (1) In general.--The board of trustees of the Institute 
     shall implement a plan for organic products research, to be 
     carried out using funds made available to the board of 
     trustees of the Institute from the Organic Agriculture 
     Research Trust Fund established by section 231.
       (2) Expansion of markets.--In implementing the plan 
     described in paragraph (1), the board of trustees of the 
     Institute shall provide a permanent system for funding 
     research activities (as defined in section 1672B of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     5925b).
       (e) Executive Committee.--
       (1) In general.--The board of trustees of the Institute may 
     appoint an executive committee from among the members of the 
     board.
       (2) Membership.--The membership of the executive committee 
     shall reflect equally each of the various regions in the 
     United States in which organically grown and processed 
     agricultural commodities are produced.
       (3) Duties and powers.--The executive committee shall have 
     such duties and powers as are delegated to the executive 
     committee by the board of trustees of the Institute.
       (f) Compensation of Members.--A member of the board of 
     trustees of the Institute shall serve without compensation.
       (g) Travel Expenses.--To the extent recommended by the 
     board of trustees of the Institute and approved by the 
     Secretary of Agriculture, a member of the board shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for an employee of an agency 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from the home or regular place of business 
     of the member in the performance of the duties of the 
     Institute.

                      Subtitle D--Regional Equity

     SEC. 241. ALLOCATION OF CONSERVATION FUNDS BY STATE.

       (a) State Allocation.--
       (1) In general.--To the maximum extent practicable, in each 
     of fiscal years 2002 through 2006, the Secretary of 
     Agriculture (referred to in this section as the 
     ``Secretary''), subject to requirements of the conservation 
     programs administered by the Secretary, shall ensure that 
     each State receives, at a minimum, the share of the funds 
     made available under this title (and amendments made by this 
     title) that equals, at a minimum, $12,000,000 for each State, 
     for use in accordance with paragraph (2), for purposes 
     consistent with this title.
       (2) Use of funds.--Of the minimum amount made available to 
     each State under paragraph (1)--
       (A) $5,000,000 shall be used in accordance with the 
     environmental quality incentives program under chapter 4 of 
     subtitle D of title XII of the Food Security Act of 1985 (16 
     U.S.C. 3839aa et seq.); and
       (B) $7,000,000 shall be used in accordance with other 
     conservation programs administered by the Secretary.
       (3) Unused funding.--Any funds made available for a fiscal 
     year under paragraph (1) that are not obligated by April 1 of 
     the fiscal year may be used to carry out other activities 
     under subtitle D of title XII of the Food Security Act of 
     1985 (16 U.S.C. 3801 et seq.).

 Subtitle E--Advisory Council and Federal Interagency Working Group on 
                        Upper Mississippi River

     SEC. 251. DEFINITIONS.

       In this subtitle:
       (1) Advisory council.--The term ``Advisory Council'' means 
     the Advisory Council on the Upper Mississippi River 
     Stewardship Initiative established under section 252(a).
       (2) Basin.--
       (A) In general.--The term ``Basin'' means the watershed 
     portion of the Upper Mississippi River and Illinois River 
     basins, from Cairo, Illinois to the headwaters of the 
     Mississippi River.
       (B) Inclusion.--The term ``Basin'' includes--
       (i) the Kaskaskia watershed along the Illinois River; and
       (ii) the Meramec watershed along the Missouri River.
       (3) Initiative.--The term ``Initiative'' means activities 
     carried out to monitor and reduce nutrient and sediment loss 
     in the Basin.
       (4) Interagency working group.--The term ``Interagency 
     working group'' means the Federal Interagency Working Group 
     established under section 263(a).
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.

[[Page S12904]]

     SEC. 252. ESTABLISHMENT OF ADVISORY COUNCIL ON THE UPPER 
                   MISSISSIPPI RIVER STEWARDSHIP INITIATIVE.

       (a) Establishment.--The Secretary, in consultation with the 
     Governors specified in subsection (c), shall establish an 
     advisory body, to be known as the ``Advisory Council on the 
     Upper Mississippi River Stewardship Initiative''.
       (b) Membership.--
       (1) Voting members.--The Advisory Council shall be composed 
     of at least 15 voting members, of which--
       (A) 2 members that are representative of nongovernmental 
     agricultural, natural resources, recreational, or 
     environmental groups or other persons having an interest in 
     the natural resources of the Basin shall be appointed by each 
     of the Governors of the States of Illinois, Iowa, Minnesota, 
     Missouri, and Wisconsin; and
       (B) 1 member representing each of the State Technical 
     Committees established under section 1261 of the Food 
     Security Act of 1985 (16 U.S.C. 3861) for the States of 
     Illinois, Iowa, Minnesota, Missouri, and Wisconsin shall be 
     appointed by the Secretary.
       (2) Nonvoting Members.--Each of the Governors referred to 
     in paragraph (1)(A) shall appoint to the Advisory Council 1 
     nonvoting member to serve as a representative of the 
     Governor.
       (c) Chairperson.--
       (1) In general.--Voting members of the Advisory Council 
     shall elect 1 member appointed under subsection (b)(1) to 
     serve as Chairperson of the Advisory Council.
       (2) Term.--The Chairperson shall serve for a term of not to 
     exceed 1 year.
       (d) Duties.--The Advisory Council shall--
       (1) serve as a means for coordination, communication, and 
     information sharing with respect to issues concerning the 
     Basin, including--
       (A) science and technology concerning conservation 
     practices;
       (B) monitoring and modeling needs;
       (C) strategies for implementing conservation assistance and 
     programs;
       (D) performance assessment; and
       (E) evaluation and reporting;
       (2)(A) prepare an annual report regarding publicly-financed 
     efforts to reduce sediment and nutrient loss in the Basin; 
     and
       (B) submit the report to--
       (i) the State legislatures of each of the States of 
     Arkansas, Illinois, Iowa, Kentucky, Louisiana, Minnesota, 
     Mississippi, Missouri, Tennessee, and Wisconsin; and
       (ii) the Upper Mississippi River Basin Association; and
       (iii) Congress;
       (3) establish (and, at the appropriate time, dissolve), in 
     consultation with the Interagency Working Group and 
     appropriate State agencies, such issue-specific task forces 
     as are necessary to effectively carry out the 
     responsibilities of the Advisory Council;
       (4) hold annual public meetings, at which at least 2 or the 
     3 members of the Advisory Council from a State are present, 
     in each of the States of Illinois, Iowa, Minnesota, Missouri, 
     and Wisconsin to develop recommendations and seek public 
     input regarding methods and priorities to reduce sediment and 
     nutrient loss in the Basin; and
       (5) in cooperation with the Secretary, coordinate outreach 
     activities in the Basin that relate to technologies and other 
     methods to reduce sediment and nutrient loss.
       (e) Staff Director.--
       (1) In general.--The Secretary shall appoint an employee of 
     the Natural Resources Conservation Service to serve as Staff 
     Director of the Advisory Council.
       (2) Duties.--The Staff Director shall work in conjunction 
     with the Chairperson of the Advisory Council to assist in 
     coordinating the activities of the Advisory Council.
       (f) Travel Expenses.--A member of the Advisory Council 
     shall be allowed travel expenses, including per diem in lieu 
     of subsistence, at rates authorized for an employee of an 
     agency under subchapter I of chapter 57 of title 5, United 
     States Code, while away from the home or regular place of 
     business of the member in the performance of the duties of 
     the Commission.
       (g) Policy.--The Secretary and the heads of other Federal 
     agencies that are members of the Interagency Working Group 
     shall give significant consideration to recommendations of 
     the Advisory Council in administering any natural resource 
     program in the Basin, despite the facts that the Advisory 
     Council--
       (1) has no implementation or enforcement authority; and
       (2) is authorized to act only in an advisory capacity.

     SEC. 253. FEDERAL INTERAGENCY WORKING GROUP.

       (a) Establishment.--The Secretary of Agriculture and the 
     Secretary of the Interior shall establish an Interagency 
     Working Group to coordinate Federal nutrient and sediment 
     reduction efforts carried out in the Basin under the 
     Initiative.
       (b) Chairperson; Additional Input and Participation.--The 
     Secretary of Agriculture (or a designee of the Secretary)--
       (1) shall serve as Chairperson of the Interagency Working 
     Group; and
       (2) may solicit input and participation by other Federal 
     agencies engaged in sediment and nutrient reduction efforts 
     in the Basin.
       (c) Annual Work Plan and Budget.--The Interagency Working 
     Group shall annually develop a coordinated work plan and 
     budget for the Federal agencies participating in the 
     Initiative--
       (1) to better coordinate Federal efforts to address 
     sediment and nutrient reduction in the Basin;
       (2) to encourage Federal agencies responsible for sediment 
     and nutrient reduction efforts to leverage Federal, State, 
     and local resources;
       (3) to identify deficiencies and redundancies in programs; 
     and
       (4) to better prioritize existing Federal spending to 
     address major sources of sediment and nutrient loss.
       (d) Coordination.--The Interagency Working Group shall 
     coordinate any recommendations to be included in the work 
     plan and budget under subsection (c) with any similar 
     recommendations of individual member agencies.
       (e) Submission of Work Plan and Budget.--Not later than 
     September 15 of each year, the Interagency Working Group 
     shall submit to the Office of Management and Budget the work 
     plan and budget required by subsection (c).

     SEC. 254. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out this 
     subtitle $400,000 for each of fiscal years 2003 through 2006.

                       Subtitle F--Miscellaneous

     SEC. 261. CRANBERRY ACREAGE RESERVE PROGRAM.

       (a) Definitions.--In this section:
       (1) Eligible area.--The term ``eligible area'' means a 
     wetland or buffer strip adjacent to a wetland that, as 
     determined by the Secretary--
       (A)(i) is used, and has a history of being used, for the 
     cultivation of cranberries; or
       (ii) is an integral component of a cranberry-growing 
     operation;
       (B) is located in an environmentally sensitive area.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (b) Program.--The Secretary shall establish a program to 
     purchase permanent easements in eligible areas from willing 
     sellers.
       (c) Purchase Price.--The Secretary shall ensure, to the 
     maximum extent practicable, that each easement purchased 
     under this section is for an amount that appropriately 
     reflects the range of values for agricultural and 
     nonagricultural land in the region in which the eligible area 
     subject to the easement is located (including whether that 
     land is located in 1 or more environmentally sensitive areas, 
     as determined by the Secretary).
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $10,000,000.

     SEC. 262. KLAMATH BASIN.

       (a) Definitions.--In this section:
       (1) Task force.--The term ``Task Force'' means the Klamath 
     Basin Interagency Task Force established under subsection 
     (b).
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (b) Interagency Task Force.--
       (1) Establishment.--
       (A) In general.--The Secretary of Agriculture shall 
     establish the Klamath Basin Interagency Task Force.
       (B) Approval of member.--A decision of the Task Force that 
     affects any area under the jurisdiction of a member of the 
     Task Force described in paragraph (2) shall not be 
     implemented without the consent of the member.
       (2) Membership.--The Task Force shall include 
     representatives of--
       (A) the Natural Resources Conservation Service;
       (B) the Farm Services Agency;
       (C) the United States Fish and Wildlife Service;
       (D) the Bureau of Reclamation;
       (E) the National Marine Fisheries Service;
       (F) the Council on Environmental Quality;
       (G) the Bureau of Indian Affairs;
       (H) the Federal Energy Regulatory Commission;
       (I) the Environmental Protection Agency; and
       (J) the United States Geological Survey.
       (3) Duties.--The Task Force shall use conservation programs 
     of the Department of Agriculture and other Federal programs 
     in the Klamath Basin in Oregon and California for the 
     purposes of--
       (A) development of a coordinated Federal effort for the 
     management of water resources throughout the Klamath Basin;
       (B) water conservation and improved agricultural practices;
       (C) aquatic ecosystem restoration;
       (D) improvement of water quality and quantity;
       (E) recovery and enhancement of endangered species, 
     including anadromous fish species and resident fish species; 
     and
       (F) restoration of the national wildlife refuges.
       (4) Cooperative agreement.--The Secretary of Agriculture, 
     Secretary of the Interior, and Secretary of Commerce shall 
     enter into a cooperative agreement to--
       (A) provide funding to the Task Force; and
       (B) use conservation programs administered by the Secretary 
     of Agriculture and other Federal programs administered by the 
     Secretary of the Interior and Secretary of Commerce in 
     carrying out the purposes described in subsection (b)(3).
       (5) Grant program.--The Task Force shall establish a grant 
     program (including appropriate cost-share, monitoring, and 
     enforcement requirements) under which the Secretary of 
     Agriculture, Secretary of the Interior, or Secretary of 
     Commerce may enter into 1 or more agreements or contracts 
     with

[[Page S12905]]

     non-Federal entities, Indian tribes (as defined in section 4 
     of the Indian Self-Determination and Education Assistance Act 
     (25 U.S.C. 450b)), environmental organizations, and water 
     districts in the Klamath Basin to carry out the purposes 
     described in subsection (b)(3).
       (c) Plan.--
       (1) Development.--
       (A) Draft plan.--Not later than 180 days after the date of 
     enactment of this Act, the Task Force shall develop, and 
     provide public notice of and an opportunity for comment on, a 
     draft 5-year plan to perform the duties of the Task Force 
     under subsection (b)(3).
       (B) Final plan.--Not later than 1 year after the date of 
     enactment of this Act, the Task Force shall finalize the plan 
     described in subparagraph (A).
       (2) Matters to be considered.--In developing the plan under 
     paragraph (1), the Task Force shall consider--
       (A) the purchase of water conservation easements;
       (B) purchase of agricultural land from willing sellers, 
     with priority given to land that will enhance water storage 
     capabilities;
       (C) benefits to the agricultural economy through incentives 
     for the use of irrigation efficiency, water conservation, or 
     other agricultural practices;
       (D) wetland restoration;
       (E) feasibility studies for alternative water storage, 
     water conservation, demand reduction, and restoration of 
     endangered species;
       (F) improvement of upper Klamath Basin watershed and water 
     quality;
       (G) improvement of habitat on the Tule Lake National 
     Wildlife Refuge, the Lower Klamath National Wildlife Refuge, 
     and the Upper Klamath Lake National Wildlife Refuge;
       (H) fish screening and water metering;
       (I) other activities in the Basin that may significantly 
     affect water resources in the Basin, as determined by the 
     Task Force; and
       (J) other matters that the Task Force considers 
     appropriate.
       (d) Cooperation With Non-Federal Entities.--In carrying out 
     the duties of the Task Force under this section, the Task 
     Force shall--
       (1) consult with--
       (A) environmental, fishing, and agricultural interests; and
       (B) on a government-to-government basis, the Klamath, 
     Hoopa, Yurok, and Karuk Tribes; and
       (2) provide appropriate opportunities for public 
     participation.
       (e) Funding.--
       (1) In general.--To carry out the purposes and activities 
     described in subsection (b)(3), the Secretary shall use 
     $175,000,000 of the funds of the Commodity Credit Corporation 
     for the period of fiscal years 2003 through 2006, of which--
       (A) $15,000,000 shall be made available to the Klamath, 
     Yurok, Hoopa, and Karuk Tribes for use in the State of 
     California; and
       (B) $15,000,000 shall be made available to those Tribes for 
     use in the State of Oregon.
       (2) Other funds.--The funds made available under 
     subparagraphs (A) and (B) of paragraph (1) shall be in 
     addition to funds available to the States of California and 
     Oregon under other provisions of this Act (including 
     amendments made by this Act).
       (3) Expiration of authority to obligate funds.--The 
     Secretary may not obligate funds made available under this 
     paragraph after September 30, 2006.
       (4) Unused funding.--Any funds made available for a fiscal 
     year under paragraph (1) that are not obligated by April 1 of 
     the fiscal year may be used to carry out other activities 
     under subtitle D of title XII of the Food Security Act of 
     1985 (16 U.S.C. 3801 et seq.).
       (f) Savings Provision.--Nothing in this section regarding 
     the Klamath Basin affects any right or obligation of any 
     party under any treaty or any provision of Federal or State 
     law.
       (g) Cooperative Agreements.--Notwithstanding the Federal 
     Grant and Cooperative Agreement Act of 1977 (41 U.S.C. 501 et 
     seq.), the Secretary may enter into cooperative agreements 
     under this section.

                            TITLE III--TRADE

 Subtitle A--Agricultural Trade Development and Assistance Act of 1954 
                          and Related Statutes

     SEC. 301. UNITED STATES POLICY.

       Section 2(2) of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1691(2)) is amended by 
     inserting before the semicolon at the end the following: 
     ``and conflict prevention''.

     SEC. 302. PROVISION OF AGRICULTURAL COMMODITIES.

       Section 202 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1722) is amended--
       (1) in subsection (b), by adding at the end the following:
       ``(3) Program diversity.--The Administrator shall--
       ``(A) encourage eligible organizations to propose and 
     implement program plans to address 1 or more aspects of the 
     program under section 201; and
       ``(B) consider proposals that incorporate a variety of 
     program objectives and strategic plans based on the 
     identification by eligible organizations of appropriate 
     activities to assist development in foreign countries.'';
       (2) in subsection (e)(1), by striking ``not less than 
     $10,000,000, and not more than $28,000,000,'' and inserting 
     ``not less than 5 percent nor more than 10 percent of the 
     funds''; and
       (3) by adding at the end the following:
       ``(h) Certified Institutional Partners.--
       ``(1) In general.--The Administrator or the Secretary, as 
     applicable, shall promulgate regulations and issue guidelines 
     to permit private voluntary organizations and cooperatives to 
     be certified as institutional partners.
       ``(2) Requirements.--To become a certified institutional 
     partner, a private voluntary organization or cooperative 
     shall submit to the Administrator a certification of 
     organizational capacity that describes--
       ``(A) the financial, programmatic, commodity management, 
     and auditing abilities and practices of the organization or 
     cooperative; and
       ``(B) the capacity of the organization or cooperative to 
     carry out projects in particular countries.
       ``(3) Multi-country proposals.--A certified institutional 
     partner shall be eligible to--
       ``(A) submit a single proposal for 1 or more countries that 
     are the same as, or similar to, those countries in which the 
     certified institutional partner has already demonstrated 
     organizational capacity;
       ``(B) receive expedited review and approval of the 
     proposal; and
       ``(C) receive commodities and assistance under this section 
     for use in 1 or more countries.''.

     SEC. 303. GENERATION AND USE OF CURRENCIES BY PRIVATE 
                   VOLUNTARY ORGANIZATIONS AND COOPERATIVES.

       Section 203 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1723) is amended--
       (1) in the section heading, by striking ``foreign'';
       (2) in subsection (a), by striking ``the recipient country, 
     or in a country'' and inserting ``1 or more recipient 
     countries, or 1 or more countries'';
       (3) in subsection (b)--
       (A) by striking ``in recipient countries, or in countries'' 
     and inserting ``1 or more recipient countries, or in 1 or 
     more countries''; and
       (B) by striking ``foreign currency'';
       (4) in subsection (c)--
       (A) by striking ``foreign currency''; and
       (B) by striking ``the recipient country, or in a country'' 
     and inserting ``1 or more recipient countries, or in 1 or 
     more countries''; and
       (5) in subsection (d)--
       (A) by striking ``Foreign currencies'' and inserting 
     ``Proceeds'';
       (B) in paragraph (2)--
       (i) by striking ``income generating'' and inserting 
     ``income-generating''; and
       (ii) by striking ``the recipient country or within a 
     country'' and inserting ``1 or more recipient countries or 
     within 1 or more countries''; and
       (C) in paragraph (3)--
       (i) by inserting a comma after ``invested''; and
       (ii) by inserting a comma after ``used''.

     SEC. 304. LEVELS OF ASSISTANCE.

       Section 204 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1724) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``that for each of fiscal 
     years 1996 through 2002 is not less than 2,025,000 metric 
     tons.'' and inserting ``that is not less than--
       ``(A) 2,100,000 metric tons for fiscal year 2002;
       ``(B) 2,200,000 metric tons for fiscal year 2003;
       ``(C) 2,300,000 metric tons for fiscal year 2004;
       ``(D) 2,400,000 metric tons for fiscal year 2005; and
       ``(E) 2,500,000 metric tons for fiscal year 2006.''; and
       (B) in paragraph (2), by striking ``1996 through 2002'' and 
     inserting ``2002 through 2006''; and
       (2) in subsection (b)(1), by inserting ``(including crude 
     degummed soybean oil)'' after ``bagged commodities''.

     SEC. 305. FOOD AID CONSULTATIVE GROUP.

       Section 205 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1725) is amended--
       (1) in subsection (a), by inserting ``, policies, 
     guidelines,'' after ``regulations'';
       (2) in subsection (d), by inserting ``policies,'' after 
     ``regulations,'' each place it appears; and
       (3) in subsection (f), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 306. MAXIMUM LEVEL OF EXPENDITURES.

       Section 206(a) of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1726(a)) is amended by 
     striking ``$1,000,000,000'' and inserting ``$2,000,000,000''.

     SEC. 307. ADMINISTRATION.

       Section 207 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1726a) is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraph (2) as paragraph (3); and
       (B) by striking paragraph (1) and inserting the following:
       ``(1) Recipient countries.--A proposal to enter into a 
     nonemergency food assistance agreement under this title shall 
     identify the recipient country or countries that are the 
     subject of the agreement.
       ``(2) Timing.--Not later than 120 days after the date of 
     submission to the Administrator of a proposal submitted by an 
     eligible organization under this title, the Administrator

[[Page S12906]]

     shall determine whether to accept the proposal.'';
       (2) in subsection (b), by striking ``guideline'' each place 
     it appears and inserting ``guideline or policy 
     determination'';
       (3) in subsection (d), by striking ``a United States field 
     mission'' and inserting ``an eligible organization with an 
     approved program under this title''; and
       (4) by adding at the end the following:
       ``(e) Timely Approval.--
       ``(1) In general.--The Administrator shall finalize program 
     agreements and resource requests for programs under this 
     section before the beginning of each fiscal year.
       ``(2) Report.--Not later than December 1 of each year, the 
     Administrator shall submit to the Committee on Agriculture 
     and the Committee on International Relations of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report that contains--
       ``(A) a list of programs, countries, and commodities 
     approved to date for assistance under this section; and
       ``(B) a statement of the total amount of funds approved to 
     date for transportation and administrative costs under this 
     section.
       ``(f) Direct Delivery.--In addition to practices in effect 
     on the date of enactment of this subsection, the Secretary 
     may approve an agreement that provides for direct delivery of 
     agricultural commodities to milling or processing facilities 
     more than 50 percent of the interest in which is owned by 
     United States citizens in foreign countries, with the 
     proceeds of transactions transferred in cash to eligible 
     organizations described in section 202(d) to carry out 
     approved projects.''.

     SEC. 308. ASSISTANCE FOR STOCKPILING AND RAPID 
                   TRANSPORTATION, DELIVERY, AND DISTRIBUTION OF 
                   SHELF-STABLE PREPACKAGED FOODS.

       Section 208(f) of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1726b(f)) is amended by 
     striking ``and 2002'' and inserting ``through 2006''.

     SEC. 309. SALE PROCEDURE.

       Section 403 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1733) is amended by adding 
     at the end the following:
       ``(l) Sale Procedure.--
       ``(1) In general.--Subsection (b) shall apply to sales of 
     commodities in recipient countries to generate proceeds to 
     carry out projects under--
       ``(A) section 416(b) of the Agricultural Act of 1949 (7 
     U.S.C. 1431(b)); and
       ``(B) title VIII of the Agricultural Trade Act of 1978.
       ``(2) Currencies.--Sales of commodities described in 
     paragraph (1) may be in United States dollars or in a 
     different currency.
       ``(3) Sale price.--Sales of commodities described in 
     paragraph (1) shall be made at a reasonable market price in 
     the economy where the commodity is to be sold, as determined 
     by the Secretary or the Administrator, as appropriate.''.

     SEC. 310. PREPOSITIONING.

       Section 407(c)(4) of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1736a(c)(4)) is amended by 
     striking ``and 2002'' and inserting ``through 2006''.

     SEC. 311. EXPIRATION DATE.

       Section 408 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1736b) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 312. MICRONUTRIENT FORTIFICATION PROGRAM.

       Section 415 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1736g-2) is amended--
       (1) in subsection (a)--
       (A) in the first sentence, by striking ``a micronutrient 
     fortification pilot program'' and inserting ``micronutrient 
     fortification programs''; and
       (B) in the second sentence--
       (i) by striking ``the program'' and inserting ``a 
     program'';
       (ii) in paragraph (1), by striking ``and'' at the end;
       (iii) in paragraph (2)--

       (I) by striking ``whole''; and
       (II) by striking the period at the end and inserting ``; 
     and''; and

       (iv) by adding at the end the following:
       ``(3) encourage technologies and systems for the improved 
     quality and safety of fortified grains and other commodities 
     that are readily transferable to developing countries.'';
       (2) in the first sentence of subsection (c)--
       (A) by striking ``the pilot program, whole'' and inserting 
     ``a program,'';
       (B) by striking ``the pilot program may'' and inserting ``a 
     program may''; and
       (C) by striking ``including'' and inserting ``such as''; 
     and
       (3) in subsection (d), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 313. FARMER-TO-FARMER PROGRAM.

       Section 501(c) of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1737(c)) is amended--
       (1) by striking ``0.4'' and inserting ``0.5,''; and
       (2) by striking ``2002'' and inserting ``2006''.

               Subtitle B--Agricultural Trade Act of 1978

     SEC. 321. EXPORT CREDIT GUARANTEE PROGRAM.

       (a) Term of Supplier Credit Program.--Section 202(a)(2) of 
     the Agricultural Trade Act of 1978 (7 U.S.C. 5622(a)(2)) is 
     amended by striking ``180'' and inserting ``360''.
       (b) Processed and High-Value Products.--Section 202(k)(1) 
     of the Agricultural Trade Act of 1978 (7 U.S.C. 5622(k)(1)) 
     is amended by striking ``, 2001, and 2002'' and inserting 
     ``through 2006''.
       (c) Report.--Section 202 of the Agricultural Trade Act of 
     1978 (7 U.S.C. 5622) is amended by adding at the end the 
     following:
       ``(l) Report on Agricultural Export Credit Programs.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this subsection, and annually thereafter, the 
     Secretary shall submit to the Committee on Agriculture and 
     the Committee on International Relations of the House of 
     Representatives and the Committee on Agriculture, Nutrition 
     and Forestry of the Senate a report on the status of 
     multilateral negotiations regarding agricultural export 
     credit programs at the World Trade Organization and the 
     Organization of Economic Cooperation and Development in 
     fulfillment of Article 10.2 of the Agreement on Agriculture 
     (as described in section 101(d)(2) of the Uruguay Round 
     Agreements Act (19 U.S.C. 3511(d)(2))).
       ``(2) Classified information.--The report under paragraph 
     (1) shall be submitted in unclassified form, but may contain 
     a classified annex.''.
       (d) Reauthorization.--Section 211(b)(1) of the Agricultural 
     Trade Act of 1978 (7 U.S.C. 5641(b)(1)) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 322. MARKET ACCESS PROGRAM.

       (a) In General.--Section 211(c) of the Agricultural Trade 
     Act of 1978 (7 U.S.C. 5641(c)) is amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and indenting 
     appropriately;
       (2) by striking ``The Commodity'' and inserting the 
     following:
       ``(1) In general.--The Commodity'';
       (3) by striking subparagraph (A) (as so redesignated) and 
     inserting the following:
       ``(A) in addition to any funds that may be specifically 
     appropriated to implement a market access program, not more 
     than $100,000,000 for fiscal year 2002, $120,000,000 for 
     fiscal year 2003, $140,000,000 for fiscal year 2004, 
     $180,000,000 for fiscal year 2005, and $200,000,000 for 
     fiscal year 2006, of the funds of, or an equal value of 
     commodities owned by, the Commodity Credit Corporation, 
     except that this paragraph shall not apply to section 203(h); 
     and''; and
       (4) by adding at the end the following:
       ``(2) Program Priorities.--Of funds made available under 
     paragraph (1)(A) in excess of $90,000,000 for any fiscal 
     year, priority shall be given to proposals--
       ``(A) made by eligible trade organizations that have never 
     participated in the market access program under this title; 
     or
       ``(B) for market access programs in emerging markets.''.
       (b) United States Quality Export Initiative.--
       (1) Findings.--Congress finds that--
       (A) the market access program established under section 203 
     of the Agricultural Trade Act of 1978 (7 U.S.C. 5623) and 
     foreign market development cooperator program established 
     under title VII of that Act (7 U.S.C. 7251 et seq.) target 
     generic and value-added agricultural products, with little 
     emphasis on the high quality of United States agricultural 
     products; and
       (B) new promotional tools are needed to enable United 
     States agricultural products to compete in higher margin, 
     international markets on the basis of quality.
       (2) Initiative.--Section 203 of the Agricultural Trade Act 
     of 1978 (7 U.S.C. 5623) is amended by adding at the end the 
     following:
       ``(h) United States Quality Export Initiative.--
       ``(1) In general.--Subject to the availability of 
     appropriations, using the authorities under this section, the 
     Secretary shall establish a program under which, on a 
     competitive basis, using practical and objective criteria, 
     several agricultural products are selected to carry the `U.S. 
     Quality' seal.
       ``(2) Promotional activities.--Agricultural products 
     selected under paragraph (1) shall be promoted using the 
     `U.S. Quality' seal at trade fairs in key markets through 
     electronic and print media.
       ``(3) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this subsection.''.

     SEC. 323. EXPORT ENHANCEMENT PROGRAM.

       (a) In General.--Section 301(e)(1)(G) of the Agricultural 
     Trade Act of 1978 (7 U.S.C. 5651(e)(1)(G)) is amended by 
     striking ``fiscal year 2002'' and inserting ``each of fiscal 
     years 2002 through 2006''.
       (b) Unfair Trade Practices.--Section 102(5)(A) of the 
     Agricultural Trade Act of 1978 (7 U.S.C. 5602(5)(A)) is 
     amended--
       (1) in clause (i), by striking ``or'' at the end;
       (2) in clause (ii), by striking the period at the end and 
     inserting ``, including, in the case of a state trading 
     enterprise engaged in the export of an agricultural 
     commodity, pricing practices that are not consistent with 
     sound commercial practices conducted in the ordinary course 
     of trade; or''; and
       (3) by adding at the end the following:
       ``(iii) changes United States export terms of trade through 
     a deliberate change in the dollar exchange rate of a 
     competing exporter.''.

     SEC. 324. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

       Section 703 of the Agricultural Trade Act of 1978 (7 U.S.C. 
     5723) is amended to read as follows:

[[Page S12907]]

     ``SEC. 703. FUNDING.

       ``(a) In General.--To carry out this title, the Secretary 
     shall use funds of the Commodity Credit Corporation, or 
     commodities of the Commodity Credit Corporation of a 
     comparable value, in the following amounts:
       ``(1) For fiscal year 2002, $37,500,000.
       ``(2) For fiscal year 2003, $40,000,000.
       ``(3) For fiscal year 2004 and each subsequent fiscal year, 
     $42,500,000.
       ``(b) Program Priorities.--Of funds or commodities provided 
     under subsection (a) in excess of $35,000,000 for any fiscal 
     year, priority shall be given to proposals--
       ``(1) made by eligible trade organizations that have never 
     participated in the program established under this title; or
       ``(2) for programs established under this title in emerging 
     markets.''.

     SEC. 325. FOOD FOR PROGRESS AND EDUCATION PROGRAMS.

       (a) In General.--The Agricultural Trade Act of 1978 (7 
     U.S.C. 5601 et seq.) is amended by adding at the end the 
     following:

         ``TITLE VIII--FOOD FOR PROGRESS AND EDUCATION PROGRAMS

     ``SEC. 801. DEFINITIONS.

       ``In this title:
       ``(1) Cooperative.--The term `cooperative' means a private 
     sector organization the members of which--
       ``(A) own and control the organization;
       ``(B) share in the profits of the organization; and
       ``(C) are provided services (such as business services and 
     outreach in cooperative development) by the organization.
       ``(2) Corporation.--The term `Corporation' means the 
     Commodity Credit Corporation.
       ``(3) Developing country.--The term `developing country' 
     means a foreign country that has--
       ``(A) a shortage of foreign exchange earnings; and
       ``(B) difficulty meeting all of the food needs of the 
     country through commercial channels and domestic production.
       ``(4) Eligible commodity.--The term `eligible commodity' 
     means an agricultural commodity (including vitamins and 
     minerals) acquired by the Secretary or the Corporation for 
     disposition in a program authorized under this title 
     through--
       ``(A) commercial purchases; or
       ``(B) inventories of the Corporation.
       ``(5) Eligible organization.--The term `eligible 
     organization' means a private voluntary organization, 
     cooperative, nongovernmental organization, or foreign 
     country, as determined by the Secretary.
       ``(6) Emerging agricultural country.--The term `emerging 
     agricultural country' means a foreign country that--
       ``(A) is an emerging democracy; and
       ``(B) has made a commitment to introduce or expand free 
     enterprise elements in the agricultural economy of the 
     country.
       ``(7) Food security.--The term `food security' means access 
     by all people at all times to sufficient food and nutrition 
     for a healthy and productive life.
       ``(8) Nongovernmental organization.--
       ``(A) In general.--The term `nongovernmental organization' 
     means an organization that operates on a local level to solve 
     development problems in a foreign country in which the 
     organization is located.
       ``(B) Exclusion.--The term `nongovernmental organization' 
     does not include an organization that is primarily an agency 
     or instrumentality of the government of a foreign country.
       ``(9) Private voluntary organization.--The term `private 
     voluntary organization' means a nonprofit, nongovernmental 
     organization that--
       ``(A) receives--
       ``(i) funds from private sources; and
       ``(ii) voluntary contributions of funds, staff time, or in-
     kind support from the public;
       ``(B) is engaged in or is planning to engage in 
     nonreligious voluntary, charitable, or development assistance 
     activities; and
       ``(C) in the case of an organization that is organized 
     under the laws of the United States or a State, is an 
     organization described in section 501(c)(3) of the Internal 
     Revenue Code of 1986 that is exempt from taxation under 
     section 501(a) of that Code.
       ``(10) Program.--The term `program' means a food or 
     nutrition assistance or development initiative proposed by an 
     eligible organization and approved by the Secretary under 
     this title.
       ``(11) Recipient country.--The term `recipient country' 
     means an emerging agricultural country that receives 
     assistance under a program.

     ``SEC. 802. FOOD FOR PROGRESS AND EDUCATION PROGRAMS.

       ``(a) In General.--To provide agricultural commodities to 
     support the introduction or expansion of free trade 
     enterprises in national economies in recipient countries, and 
     to provide food or nutrition assistance in recipient 
     countries, the Secretary shall establish food for progress 
     and education programs under which the Secretary may enter 
     into agreements (including multiyear agreements and for 
     programs in more than 1 country) with--
       ``(1) the governments of emerging agricultural countries;
       ``(2) private voluntary organizations;
       ``(3) nonprofit agricultural organizations and 
     cooperatives;
       ``(4) nongovernmental organizations; and
       ``(5) other private entities.
       ``(b) Considerations.--In determining whether to enter into 
     an agreement to establish a program under subsection (a), the 
     Secretary shall take into consideration whether an emerging 
     agricultural country is committed to carrying out, or is 
     carrying out, policies that promote--
       ``(1) economic freedom;
       ``(2) private production of food commodities for domestic 
     consumption; and
       ``(3) the creation and expansion of efficient domestic 
     markets for the purchase and sale of those commodities.
       ``(c) International Food for Education and Nutrition 
     Program.--
       ``(1) In general.--In cooperation with other countries, the 
     Secretary shall establish an initiative within the food for 
     progress and education programs under this title to be known 
     as the `International Food for Education and Nutrition 
     Program', through which the Secretary may provide to eligible 
     organizations agricultural commodities and technical and 
     nutritional assistance in connection with education programs 
     to improve food security and enhance educational 
     opportunities for preschool age and primary school age 
     children in recipient countries.
       ``(2) Agreements.--In carrying out this subsection, the 
     Secretary--
       ``(A) shall administer the programs under this subsection 
     in manner that is consistent with this title; and
       ``(B) may enter into agreements with eligible 
     organizations--
       ``(i) to purchase, acquire, and donate eligible commodities 
     to eligible organizations to carry out agreements in 
     recipient countries; and
       ``(ii) to provide technical and nutritional assistance to 
     carry out agreements in recipient countries.
       ``(3) Other donor countries.--The Secretary shall encourage 
     other donor countries, directly or through eligible 
     organizations--
       ``(A) to donate goods and funds to recipient countries; and
       ``(B) to provide technical and nutritional assistance to 
     recipient countries.
       ``(4) Private sector.--The President and the Secretary are 
     urged to encourage the support and active involvement of the 
     private sector, foundations, and other individuals and 
     organizations in programs and activities assisted under this 
     subsection.
       ``(5) Graduation.--An agreement with an eligible 
     organization under this subsection shall include provisions--
       ``(A)(i) to sustain the benefits to the education, 
     enrollment, and attendance of children in schools in the 
     targeted communities when the provision of commodities and 
     assistance to a recipient country under the program under 
     this subsection terminates; and
       ``(ii) to estimate the period of time required until the 
     recipient country or eligible organization is able to provide 
     sufficient assistance without additional assistance under 
     this subsection; or
       ``(B) to provide other long-term benefits to targeted 
     populations of the recipient country.
       ``(6) Annual report.--The Secretary shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate an annual report that describes--
       ``(A) the results of the implementation of this subsection 
     during the year covered by the report, including the impact 
     on the enrollment, attendance, and performance of children in 
     preschools and primary schools targeted under the program 
     under this subsection; and
       ``(B) the level of commitments by, and the potential for 
     obtaining additional goods and assistance from, other 
     countries for subsequent years.
       ``(d) Terms.--
       ``(1) In general.--The Secretary may provide agricultural 
     commodities under this title on--
       ``(A) a grant basis; or
       ``(B) subject to paragraph (2), credit terms.
       ``(2) Credit terms.--Payment for agricultural commodities 
     made available under this title that are purchased on credit 
     terms shall be made on the same basis as payments made under 
     section 103 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1703).
       ``(3) No effect on domestic programs.--The Secretary shall 
     not make an agricultural commodity available for disposition 
     under this section in any amount that will reduce the amount 
     of the commodity that is traditionally made available through 
     donations to domestic feeding programs or agencies, as 
     determined by the Secretary.
       ``(e) Reports.--Each eligible organization that enters into 
     an agreement under this title shall submit to the Secretary, 
     at such time as the Secretary may request, a report 
     containing such information as the Secretary may request 
     relating to the use of agricultural commodities and funds 
     provided to the eligible organization under this title.
       ``(f) Coordination.--To ensure that the provision of 
     commodities under this section is coordinated with and 
     complements other foreign assistance provided by the United 
     States, assistance under this section shall be coordinated 
     through the mechanism designated by the President to 
     coordinate assistance under the Agricultural Trade 
     Development and Assistance Act of 1954 (7 U.S.C. 1691 et 
     seq.).
       ``(g) Quality Assurance.--
       ``(1) In general.--The Secretary shall ensure, to the 
     maximum extent practicable,

[[Page S12908]]

     that each eligible organization participating in 1 or more 
     programs under this section--
       ``(A) uses eligible commodities made available under this 
     title--
       ``(i) in an effective manner;
       ``(ii) in the areas of greatest need; and
       ``(iii) in a manner that promotes the purposes of this 
     title;
       ``(B) in using eligible commodities, assesses and takes 
     into account the needs of recipient countries and the target 
     populations of the recipient countries;
       ``(C) works with recipient countries, and indigenous 
     institutions or groups in recipient countries, to design and 
     carry out mutually acceptable programs authorized in 
     subsection (h)(2)(C)(i);
       ``(D) monitors and reports on the distribution or sale of 
     eligible commodities provided under this title using methods 
     that, as determined by the Secretary, facilitate accurate and 
     timely reporting;
       ``(E) periodically evaluates the effectiveness of the 
     program of the eligible organization, including, as 
     applicable, an evaluation of whether the development or food 
     and nutrition purposes of the program can be sustained in a 
     recipient country if the assistance provided to the recipient 
     country is reduced and eventually terminated; and
       ``(F) considers means of improving the operation of the 
     program of the eligible organization.
       ``(2) Certified institutional partners.--
       ``(A) In general.--The Secretary shall promulgate 
     regulations and guidelines to permit private voluntary 
     organizations and cooperatives to be certified as 
     institutional partners.
       ``(B) Requirements.--To become a certified institutional 
     partner, a private voluntary organization or cooperative 
     shall submit to the Secretary a certification of 
     organizational capacity that describes--
       ``(i) the financial, programmatic, commodity management, 
     and auditing abilities and practices of the organization or 
     cooperative; and
       ``(ii) the capacity of the organization or cooperative to 
     carry out projects in particular countries.
       ``(C) Multicountry proposals.--A certified institutional 
     partner shall be eligible to--
       ``(i) submit a single proposal for 1 or more countries that 
     are the same as, or similar to, those countries in which the 
     certified institutional partner has already demonstrated 
     organizational capacity;
       ``(ii) receive expedited review and approval of the 
     proposal; and
       ``(iii) request commodities and assistance under this 
     section for use in 1 or more countries.
       ``(D) Multiyear agreements.--In carrying out this title, on 
     request and subject to the availability of commodities, the 
     Secretary is encouraged to approve agreements that provide 
     for commodities to be made available for distribution on a 
     multiyear basis, if the agreements otherwise meet the 
     requirements of this title.
       ``(h) Transshipment and Resale.--
       ``(1) In general.--The transshipment or resale of an 
     eligible commodity to a country other than a recipient 
     country shall be prohibited unless the transshipment or 
     resale is approved by the Secretary.
       ``(2) Monetization.--
       ``(A) In general.--Subject to subparagraphs (B) through 
     (D), an eligible commodity provided under this section may be 
     sold for foreign currency or United States dollars or 
     bartered, with the approval of the Secretary.
       ``(B) Sale or barter of food assistance.--The sale or 
     barter of eligible commodities under this title may be 
     conducted only within (as determined by the Secretary)--
       ``(i) a recipient country or country nearby to the 
     recipient country; or
       ``(ii) another country, if--

       ``(I) the sale or barter within the recipient country or 
     nearby country is not practicable; and
       ``(II) the sale or barter within countries other than the 
     recipient country or nearby country will not disrupt 
     commercial markets for the agricultural commodity involved.

       ``(C) Humanitarian or development purposes.--The Secretary 
     may authorize the use of proceeds or exchanges to reimburse, 
     within a recipient country or other country in the same 
     region, the costs incurred by an eligible organization for--
       ``(i)(I) programs targeted at hunger and malnutrition; or
       ``(II) development programs involving food security or 
     education;
       ``(ii) transportation, storage, and distribution of 
     eligible commodities provided under this title; and
       ``(iii) administration, sales, monitoring, and technical 
     assistance.
       ``(D) Exception.--The Secretary shall not approve the use 
     of proceeds described in subparagraph (C) to fund any 
     administrative expenses of a foreign government.
       ``(E) Private sector enhancement.--As appropriate, the 
     Secretary may provide eligible commodities under this title 
     in a manner that uses commodity transactions as a means of 
     developing in the recipient countries a competitive private 
     sector that can provide for the importation, transportation, 
     storage, marketing, and distribution of commodities.
       ``(i) Displacement of Commercial Sales.--In carrying out 
     this title, the Secretary shall, to the maximum extent 
     practicable consistent with the purposes of this title, 
     avoid--
       ``(1) displacing any commercial export sale of United 
     States agricultural commodities that would otherwise be made;
       ``(2) disrupting world prices of agricultural commodities; 
     or
       ``(3) disrupting normal patterns of commercial trade of 
     agricultural commodities with foreign countries.
       ``(j) Deadline for Program Announcements.--
       ``(1) In general.--Before the beginning of the applicable 
     fiscal year, the Secretary shall, to the maximum extent 
     practicable--
       ``(A) make all determinations concerning program agreements 
     and resource requests for programs under this title; and
       ``(B) announce those determinations.
       ``(2) Report.--Not later than November 1 of the applicable 
     fiscal year, the Secretary shall submit to the Committee on 
     Agriculture of the House of Representatives and the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate a list 
     of programs, countries, and commodities, and the total amount 
     of funds for transportation and administrative costs, 
     approved to date under this title.
       ``(k) Military Distribution of Assistance.--
       ``(1) In general.--The Secretary shall ensure, to the 
     maximum extent practicable, that agricultural commodities 
     made available under this title are provided without regard 
     to--
       ``(A) the political affiliation, geographic location, 
     ethnic, tribal, or religious identity of the recipient; or
       ``(B) any other extraneous factors, as determined by the 
     Secretary.
       ``(2) Prohibition on handling of commodities by the 
     military.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Secretary shall not enter into an agreement under this 
     title to provide agricultural commodities if the agreement 
     requires or permits the distribution, handling, or allocation 
     of agricultural commodities by the military forces of any 
     foreign government or insurgent group.
       ``(B) Exception.--The Secretary may authorize the 
     distribution, handling, or allocation of commodities by the 
     military forces of a country in exceptional circumstances in 
     which--
       ``(i) nonmilitary channels are not available for 
     distribution, handling, or allocation;
       ``(ii) the distribution, handling, or allocation is 
     consistent with paragraph (1); and
       ``(iii) the Secretary determines that the distribution, 
     handling, or allocation is necessary to meet the emergency 
     health, safety, or nutritional requirements of the population 
     of a recipient country.
       ``(3) Encouragement of safe passage.--In entering into an 
     agreement under this title that involves 1 or more areas 
     within a recipient country that is experiencing protracted 
     warfare or civil unrest, the Secretary shall, to the maximum 
     extent practicable, encourage all parties to the conflict 
     to--
       ``(A) permit safe passage of the commodities and other 
     relief supplies; and
       ``(B) establish safe zones for--
       ``(i) medical and humanitarian treatment; and
       ``(ii) evacuation of injured persons.
       ``(l) Level of Assistance.--The cost of commodities made 
     available under this title, and the expenses incurred in 
     connection with the provision of those commodities shall be 
     in addition to the level of assistance provided under the 
     Agricultural Trade Development and Assistance Act of 1954 (7 
     U.S.C. 1691 et seq.).
       ``(m) Commodity Credit Corporation.--
       ``(1) In general.--Subject to paragraphs (6) through (8), 
     the Secretary may use the funds, facilities, and authorities 
     of the Corporation to carry out this title.
       ``(2) Minimum tonnage.--Subject to paragraphs (5) and 
     (7)(B), not less than 400,000 metric tons of commodities may 
     be provided under this title for each of fiscal years 2002 
     through 2006.
       ``(3) Authorization of appropriations.--In addition to 
     tonnage authorized under paragraph (2), there are authorized 
     to be appropriated such sums as are necessary to carry out 
     this title.
       ``(4) Title i funds.--In addition to tonnage and funds 
     authorized under paragraphs (2), (3), and (7)(B), the 
     Corporation may use funds appropriated to carry out title I 
     of the Agricultural Trade Development and Assistance Act of 
     1954 (7 U.S.C. 1701 et seq.)) in carrying out this section 
     with respect to commodities made available under this title.
       ``(5) International food for education and nutrition 
     program.--
       ``(A) In general.--Of the funds that would be available to 
     carry out paragraph (2), the Secretary may use not more than 
     $200,000,000 for each fiscal year to carry out the initiative 
     established under subsection (c).
       ``(B) Reallocation.--Tons not allocated under subsection 
     (c) by June 30 of each fiscal year shall be made available 
     for proposals submitted under the food for progress and 
     education programs under subsection (a).
       ``(6) Limitation on purchases of commodities.--The 
     Corporation may purchase agricultural commodities for 
     disposition under this title only if Corporation inventories 
     are insufficient to satisfy commitments made in agreements 
     entered into under this title.
       ``(7) Eligible costs and expenses.--
       ``(A) In general.--Subject to subparagraph (B), with 
     respect to an eligible commodity

[[Page S12909]]

     made available under this title, the Corporation may pay--
       ``(i) the costs of acquiring the eligible commodity;
       ``(ii) the costs associated with packaging, enriching, 
     preserving, and fortifying of the eligible commodity;
       ``(iii) the processing, transportation, handling, and other 
     incidental costs incurred before the date on which the 
     commodity is delivered free on board vessels in United States 
     ports;
       ``(iv) the vessel freight charges from United States ports 
     or designated Canadian transshipment ports, as determined by 
     the Secretary, to designated ports of entry abroad;
       ``(v) the costs associated with transporting the eligible 
     commodity from United States ports to designated points of 
     entry abroad in a case in which--

       ``(I) a recipient country is landlocked;
       ``(II) ports of a recipient country cannot be used 
     effectively because of natural or other disturbances;
       ``(III) carriers to a specific country are unavailable; or
       ``(IV) substantial savings in costs or time may be gained 
     by the use of points of entry other than ports;

       ``(vi) the transportation and associated distribution costs 
     incurred in moving the commodity (including repositioned 
     commodities) from designated points of entry or ports of 
     entry abroad to storage and distribution sites;
       ``(vii) in the case of an activity under subsection (c), 
     the internal transportation, storage, and handling costs 
     incurred in moving the eligible commodity, if the Secretary 
     determines that payment of the costs is appropriate and that 
     the recipient country is a low income, net food-importing 
     country that--

       ``(I) meets the poverty criteria established by the 
     International Bank for Reconstruction and Development for 
     Civil Works Preference; and
       ``(II) has a national government that is committed to or is 
     working toward, through a national action plan, the World 
     Declaration on Education for All convened in 1990 in Jomtien, 
     Thailand, and the followup Dakar Framework for Action of the 
     World Education Forum in 2000;

       ``(viii) the charges for general average contributions 
     arising out of the ocean transport of commodities 
     transferred; and
       ``(ix) the costs, in addition to costs authorized by 
     clauses (i) through (viii), of providing--

       ``(I) assistance in the administration, sale, and 
     monitoring of food assistance activities under this title; 
     and
       ``(II) technical assistance for monetization programs.

       ``(B) Funding.--Except for costs described in subparagraph 
     (A)(i), not more than $80,000,000 of funds that would be made 
     available to carry out paragraph (2) may be used to cover 
     costs under this paragraph unless authorized in advance in an 
     appropriation Act.
       ``(8) Payment of administrative costs.--An eligible 
     organization that receives payment for administrative costs 
     through monetization of the eligible commodity under 
     subsection (h)(2) shall not be eligible to receive payment 
     for the same administrative costs through direct payments 
     under paragraph (7)(A)(ix)(I).''.
       (b) Conforming Amendments.--
       (1) Section 416(b)(7)(D)(iii) of the Agricultural Act of 
     1949 (7 U.S.C. 1431(b)(7)(D)(iii)) is amended by striking 
     ``the Food for Progress Act of 1985'' and inserting ``title 
     VIII of the Agricultural Trade Act of 1978''.
       (2) The Act of August 19, 1958 (7 U.S.C. 1431 note; Public 
     Law 85-683) is amended by striking ``the Food for Progress 
     Act of 1985'' and inserting ``title VIII of the Agricultural 
     Trade Act of 1978''.
       (3) Section 1110 of the Food Security Act of 1985 (7 U.S.C. 
     1736o) is repealed.

     SEC. 326. EXPORTER ASSISTANCE INITIATIVE.

       (a) Findings.--Congress find that--
       (1) information in the possession of Federal agencies other 
     than the Department of Agriculture that is necessary for the 
     export of agricultural commodities and products is available 
     only from multiple disparate sources; and
       (2) because exporters often need access to information 
     quickly, exporters lack the time to search multiple sources 
     to access necessary information, and exporters often are 
     unaware of where the necessary information can be located.
       (b) Initiative.--Title I of the Agricultural Trade Act of 
     1978 (7 U.S.C. 5601 et seq.) is amended by adding at the end 
     the following:

     ``SEC. 107. EXPORTER ASSISTANCE INITIATIVE.

       ``(a) In General.--In order to create a single source of 
     information for exports of United States agricultural 
     commodities, the Secretary shall develop a website on the 
     Internet that collates onto a single website all information 
     from all agencies of the Federal Government that is relevant 
     to the export of United States agricultural commodities.
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out subsection (a)--
       ``(1) $1,000,000 for each of fiscal years 2002 through 
     2004; and
       ``(2) $500,000 for each of fiscal years 2005 and 2006.''.

        Subtitle C--Miscellaneous Agricultural Trade Provisions

     SEC. 331. BILL EMERSON HUMANITARIAN TRUST.

       Section 302 of the Bill Emerson Humanitarian Trust Act (7 
     U.S.C. 1736f-1) is amended by striking ``2002'' each place it 
     appears in subsection (b)(2)(B)(i) and paragraphs (1) and (2) 
     of subsection (h) and inserting ``2006''.

     SEC. 332. EMERGING MARKETS.

       Section 1542 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5622 note; Public Law 101-624) is 
     amended by striking ``2002'' each place it appears in 
     subsections (a) and (d)(1)(A)(i) and inserting ``2006''.

     SEC. 333. BIOTECHNOLOGY AND AGRICULTURAL TRADE PROGRAM.

       Section 1542 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5622 note; Public Law 101-624) is 
     amended by adding at the end the following:
       ``(g) Biotechnology and Agricultural Trade Program.--
       ``(1) In general.--The Secretary of Agriculture shall 
     establish a program to enhance foreign acceptance of 
     agricultural biotechnology and United States agricultural 
     products developed through biotechnology.
       ``(2) Focus.--The program shall address the continuing and 
     increasing market access, regulatory, and marketing issues 
     relating to export commerce of United States agricultural 
     biotechnology products.
       ``(3) Education and outreach.--
       ``(A) Foreign markets.--Support for United States 
     agricultural market development organizations to carry out 
     education and other outreach efforts concerning biotechnology 
     shall target such educational initiatives directed toward--
       ``(i) producers, buyers, consumers, and media in foreign 
     markets through initiatives in foreign markets; and
       ``(ii) government officials, scientists, and trade 
     officials from foreign countries through exchange programs.
       ``(B) Funding for education and outreach.--Funding for 
     activities under subparagraph (A) may be--
       ``(i) used through--

       ``(I) the emerging markets program under this section; or
       ``(II) the Cochran Fellowship Program under section 1543; 
     or

       ``(ii) applied directly to foreign market development 
     cooperators through the foreign market development cooperator 
     program established under section 702.
       ``(4) Rapid response.--
       ``(A) In general.--The Secretary shall assist exporters of 
     United States agricultural commodities in cases in which the 
     exporters are harmed by unwarranted and arbitrary barriers to 
     trade due to--
       ``(i) marketing of biotechnology products;
       ``(ii) food safety;
       ``(iii) disease; or
       ``(iv) other sanitary or phytosanitary concerns.
       ``(B) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this paragraph $1,000,000 for 
     each of fiscal years 2002 through 2006.
       ``(5) Funding.--
       ``(A) Commodity credit corporation.--The Secretary shall 
     use the funds, facilities, and authorities of the Commodity 
     Credit Corporation to carry out this subsection (other than 
     paragraph (4)).
       ``(B) Funding amount.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall make available to carry out 
     this subsection (other than paragraph (4)) $15,000,000 for 
     each of fiscal years 2002 through 2006.''.

     SEC. 334. SURPLUS COMMODITIES FOR DEVELOPING OR FRIENDLY 
                   COUNTRIES.

       (a) Use of Currencies.--Section 416(b)(7)(D) of the 
     Agricultural Act of 1949 (7 U.S.C. 1431(b)(7)(D)) is 
     amended--
       (1) in clauses (i) and (iii), by striking ``foreign 
     currency'' each place it appears;
       (2) in clause (ii)--
       (A) in the first sentence, by striking ``Foreign 
     currencies'' and inserting ``Proceeds''; and
       (B) in the second sentence, by striking ``foreign 
     currency''; and
       (3) in clause (iv)--
       (A) by striking ``Foreign currency proceeds'' and inserting 
     ``Proceeds''; and
       (B) by striking ``; or'' and all that follows and inserting 
     a period.
       (b) Implementation of Agreements.--Section 416(b)(8) of the 
     Agricultural Act of 1949 (7 U.S.C. 1431(b)(8)) is amended by 
     striking ``(8)(A)'' and all that follows through ``(B) The 
     Secretary'' and inserting the following:
       ``(8) Administrative provisions.--
       ``(A) Direct delivery.--In addition to practices in effect 
     on the date of enactment of this subparagraph, the Secretary 
     may approve an agreement that provides for direct delivery of 
     eligible commodities to milling or processing facilities more 
     than 50 percent of the interest in which is owned by United 
     States citizens in recipient countries, with the proceeds of 
     transactions transferred in cash to eligible organizations to 
     carry out approved projects.
       ``(B) Regulations.--The Secretary''.
       (c) Certified Institutional Partners.--Section 416 of the 
     Agricultural Act of 1949 (7 U.S.C. 1431) is amended by adding 
     at the end the following:
       ``(c) Certified Institutional Partners.--
       ``(1) In general.--The Secretary shall promulgate 
     regulations and guidelines to permit private voluntary 
     organizations and cooperatives to be certified as 
     institutional partners.
       ``(2) Requirements.--To become a certified institutional 
     partner, a private voluntary organization or cooperative 
     shall submit to the

[[Page S12910]]

     Secretary a certification of organizational capacity that 
     describes--
       ``(A) the financial, programmatic, commodity management, 
     and auditing abilities and practices of the organization or 
     cooperative; and
       ``(B) the capacity of the organization or cooperative to 
     carry out projects in particular countries.
       ``(3) Multi-country proposals.--A certified institutional 
     partner shall be eligible to--
       ``(A) submit a single proposal for 1 or more countries that 
     are the same as, or similar to, those countries in which the 
     certified institutional partner has already demonstrated 
     organizational capacity;
       ``(B) receive expedited review and approval of the 
     proposal; and
       ``(C) request commodities and assistance under this section 
     for use in 1 or more countries.''.

     SEC. 335. AGRICULTURAL TRADE WITH CUBA.

       (a) In General.--Section 908 of the Agriculture, Rural 
     Development, Food and Drug Administration and Related 
     Agencies Appropriations Act, 2001 (22 U.S.C. 7207), is 
     amended by striking subsection (b).
       (b) Conforming Amendments.--Section 908(a) of the 
     Agriculture, Rural Development, Food and Drug Administration 
     and Related Agencies Appropriations Act, 2001 (22 U.S.C. 
     7207(a)) (as amended by subsection (a)), is amended--
       (1) by striking ``(a)'' and all that follows through 
     ``Notwithstanding'' and inserting the following:
       ``(a) In General.--Notwithstanding'';
       (2) by striking ``(2) Rule of construction.--Nothing in 
     paragraph (1)'' and inserting the following:
       ``(b) Rule of Construction.--Nothing in subsection (a)''; 
     and
       (3) by striking ``(3) Waiver.--The President may waive the 
     application of paragraph (1)'' and inserting the following:
       ``(c) Waiver.--The President may waive the application of 
     subsection (a)''.

     SEC. 336. SENSE OF CONGRESS CONCERNING AGRICULTURAL TRADE.

       (a) Agriculture Trade Negotiating Objectives.--It is the 
     sense of Congress that the principal negotiating objective of 
     the United States with respect to agricultural trade in all 
     multilateral, regional, and bilateral negotiations is to 
     obtain competitive opportunities for the export of United 
     States agricultural commodities in foreign markets 
     substantially equivalent to the competitive opportunities 
     afforded foreign exports in United States markets and to 
     achieve fairer and more open conditions of agricultural trade 
     in bulk and value-added commodities by--
       (1) reducing or eliminating, by a date certain, tariffs or 
     other charges that decrease market opportunities for the 
     export of United States agricultural commodities, giving 
     priority to United States agricultural commodities that are 
     subject to significantly higher tariffs or subsidy regimes of 
     major producing countries;
       (2) immediately eliminating all export subsidies on 
     agricultural commodities worldwide while maintaining bona 
     fide food aid and preserving United States agricultural 
     market development and export credit programs that allow the 
     United States to compete with other foreign export promotion 
     efforts;
       (3) leveling the playing field for United States 
     agricultural producers by disciplining domestic supports such 
     that no other country can provide greater support, measured 
     as a percentage of total agricultural production value, than 
     the United States does while preserving existing green box 
     category to support conservation activities, family farms, 
     and rural communities;
       (4) developing, strengthening, and clarifying rules and 
     effective dispute settlement mechanisms to eliminate 
     practices that unfairly decrease United States market access 
     opportunities for United States agricultural commodities or 
     distort agricultural markets to the detriment of the United 
     States, including--
       (A) unfair or trade-distorting activities of state trading 
     enterprises and other administrative mechanisms, with 
     emphasis on--
       (i) requiring price transparency in the operation of state 
     trading enterprises and such other mechanisms; and
       (ii) ending discriminatory pricing practices for 
     agricultural commodities that amount to de facto export 
     subsidies so that the enterprises or other mechanisms do not 
     (except in cases of bona fide food aid) sell agricultural 
     commodities in foreign markets at prices below domestic 
     market prices or prices below the full costs of acquiring and 
     delivering agricultural commodities to the foreign markets;
       (B) unjustified trade restrictions or commercial 
     requirements affecting new agricultural technologies, 
     including biotechnology;
       (C) unjustified sanitary or phytosanitary restrictions, 
     including restrictions that are not based on scientific 
     principles, in contravention of the Agreement on the 
     Application of Sanitary and Phytosanitary Measures (as 
     described in section 101(d)(3) of the Uruguay Round 
     Agreements Act (19 U.S.C. 3511(d)(3)));
       (D) other unjustified technical barriers to agricultural 
     trade; and
       (E) restrictive and nontransparent rules in the 
     administration of tariff rate quotas;
       (5) improving import relief mechanisms to recognize the 
     unique characteristics of perishable agricultural 
     commodities;
       (6) taking into account whether a party to negotiations 
     with respect to trading in an agricultural commodity has--
       (A) failed to adhere to the provisions of an existing 
     bilateral trade agreement with the United States;
       (B) circumvented obligations under a multilateral trade 
     agreement to which the United States is a signatory; or
       (C) manipulated its currency value to the detriment of 
     United States agricultural producers or exporters; and
       (7) otherwise ensuring that countries that accede to the 
     World Trade Organization--
       (A) have made meaningful market liberalization commitments 
     in agriculture; and
       (B) make progress in fulfilling those commitments over 
     time.
       (b) Priority for Agriculture Trade.--It is the sense of 
     Congress that--
       (1) reaching a successful agreement on agriculture should 
     be the top priority of United States negotiators in World 
     Trade Organization talks; and
       (2) if the primary export competitors of the United States 
     fail to reduce their trade distorting domestic supports and 
     eliminate export subsidies in accordance with the negotiating 
     objectives expressed in this section, the United States 
     should take steps to increase the leverage of United States 
     negotiators and level the playing field for United States 
     producers, within existing World Trade Organization 
     commitments.
       (c) Consultation with Congressional Committees.--It is the 
     sense of Congress that--
       (1) before the United States Trade Representative 
     negotiates a trade agreement that would reduce tariffs on 
     agricultural commodities or require a change in United States 
     agricultural law, the United States Trade Representative 
     should consult with the Committee on Agriculture and the 
     Committee on Ways and Means of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry and 
     the Committee on Finance of the Senate;
       (2) not less than 48 hours before initialing an agreement 
     relating to agricultural trade negotiated under the auspices 
     of the World Trade Organization, the United States Trade 
     Representative should consult closely with the committees 
     referred to in paragraph (1) regarding--
       (A) the details of the agreement;
       (B) the potential impact of the agreement on United States 
     agricultural producers; and
       (C) any changes in United States law necessary to implement 
     the agreement; and
       (3) any agreement or other understanding (whether verbal or 
     in writing) that relates to agricultural trade that is not 
     disclosed to Congress before legislation implementing a trade 
     agreement is introduced in either the Senate or the House of 
     Representatives should not be considered to be part of the 
     agreement approved by Congress and should have no force and 
     effect under Unites States law or in any dispute settlement 
     body.

                      TITLE IV--NUTRITION PROGRAMS

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Food Stamp Reauthorization 
     Act of 2001''.

                     Subtitle A--Food Stamp Program

     SEC. 411. ENCOURAGEMENT OF PAYMENT OF CHILD SUPPORT.

       (a) Exclusion.--Section 5(d)(6) of the Food Stamp Act of 
     1977 (7 U.S.C. 2014(d)(6)) is amended by adding at the end 
     the following: ``and child support payments made by a 
     household member to or for an individual who is not a member 
     of the household if the household member is legally obligated 
     to make the payments,''.
       (b) Simplified Procedure.--Section 5 of the Food Stamp Act 
     of 1977 (7 U.S.C. 2014) is amended--
       (1) in subsection (e), by striking paragraph (4) and 
     inserting the following:
       ``(4) Deduction for child support payments.--
       ``(A) In general.--In lieu of providing an exclusion for 
     legally obligated child support payments made by a household 
     member under subsection (d)(6), a State agency may elect to 
     provide a deduction for the amount of the payments.
       ``(B) Order of determining deductions.--A deduction under 
     this paragraph shall be determined before the computation of 
     the excess shelter expense deduction under paragraph (6).''; 
     and
       (2) by adding at the end the following:
       ``(n) State Options To Simplify Determination of Child 
     Support Payments Made by Household Members.--
       ``(1) In general.--Regardless of whether a State agency 
     elects to provide a deduction under subsection (e)(4), the 
     Secretary shall establish simplified procedures to allow 
     State agencies, at the option of the State agencies, to 
     determine the amount of the legally obligated child support 
     payments made, including procedures to allow the State agency 
     to rely on information from the agency responsible for 
     implementing the program under part D of title IV of the 
     Social Security Act (42 U.S.C. 661 et seq.) concerning 
     payments made in prior months in lieu of obtaining current 
     information from the household.
       ``(2) Duration of determination of amount of support 
     payments.--If a State agency makes a determination of the 
     amount of support payments of a household under paragraph 
     (1), the State agency may provide that the amount of the 
     exclusion or deduction for the household shall not change 
     until the eligibility of the household is next redetermined 
     under section 11(e)(4).''.

[[Page S12911]]

     SEC. 412. SIMPLIFIED DEFINITION OF INCOME.

       Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(d)) is amended--
       (1) by striking ``and (15)'' and inserting ``(15)''; and
       (2) by inserting before the period at the end the 
     following: ``, (16) at the option of the State agency, any 
     educational loans on which payment is deferred, grants, 
     scholarships, fellowships, veterans' educational benefits, 
     and the like (other than loans, grants, scholarships, 
     fellowships, veterans' educational benefits, and the like 
     excluded under paragraph (3)), to the extent that they are 
     required to be excluded under title XIX of the Social 
     Security Act (42 U.S.C. 1396 et seq.), (17) at the option of 
     the State agency, any State complementary assistance program 
     payments that are excluded for the purpose of determining 
     eligibility for medical assistance under section 1931 of the 
     Social Security Act (42 U.S.C. 1396u-1), and (18) at the 
     option of the State agency, any types of income that the 
     State agency does not consider when determining eligibility 
     for (A) cash assistance under a program funded under part A 
     of title IV of the Social Security Act (42 U.S.C. 601 et 
     seq.) or the amount of such assistance, or (B) medical 
     assistance under section 1931 of the Social Security Act (42 
     U.S.C. 1396u-1), except that this paragraph does not 
     authorize a State agency to exclude wages or salaries, 
     benefits under title I, II, IV, X, XIV, or XVI of the Social 
     Security Act (42 U.S.C. 1381 et seq.), regular payments from 
     a government source (such as unemployment benefits and 
     general assistance), worker's compensation, child support 
     payments made to a household member by an individual who is 
     legally obligated to make the payments, or such other types 
     of income the consideration of which the Secretary determines 
     by regulation to be essential to equitable determinations of 
     eligibility and benefit levels''.

     SEC. 413. INCREASE IN BENEFITS TO HOUSEHOLDS WITH CHILDREN.

       Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(e)) is amended by striking paragraph (1) and inserting 
     the following:
       ``(1) Standard deduction.--
       ``(A) In general.--Subject to the other provisions of this 
     paragraph, the Secretary shall allow for each household a 
     standard deduction that is equal to the greater of--
       ``(i) the applicable percentage specified in subparagraph 
     (D) of the applicable income standard of eligibility 
     established under subsection (c)(1); or
       ``(ii) the minimum deduction specified in subparagraph (E).
       ``(B) Guam.--The Secretary shall allow for each household 
     in Guam a standard deduction that is--
       ``(i) equal to the applicable percentage specified in 
     subparagraph (D) of twice the income standard of eligibility 
     established under subsection (c)(1) for the 48 contiguous 
     States and the District of Columbia; but
       ``(ii) not less than the minimum deduction for Guam 
     specified in subparagraph (E).
       ``(C) Households of 6 or more members.--The income standard 
     of eligibility established under subsection (c)(1) for a 
     household of 6 members shall be used to calculate the 
     standard deduction for each household of 6 or more members.
       ``(D) Applicable percentage.--For the purpose of 
     subparagraph (A), the applicable percentage shall be--
       ``(i) 8 percent for each of fiscal years 2002 through 2007;
       ``(ii) 8.25 percent for fiscal year 2008;
       ``(iii) 8.5 percent for each of fiscal years 2009 and 2010; 
     and
       ``(iv) 9 percent for fiscal year 2011 and each fiscal year 
     thereafter.
       ``(E) Minimum deduction.--The minimum deduction shall be 
     $134, $229, $189, $269, and $118 for the 48 contiguous States 
     and the District of Columbia, Alaska, Hawaii, Guam, and the 
     Virgin Islands of the United States, respectively.''.

     SEC. 414. SIMPLIFIED DETERMINATION OF HOUSING COSTS.

       (a) In General.--Section 5(e)(7) of the Food Stamp Act of 
     1977 (7 U.S.C. 2014(e)(7)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``A household'' and inserting the 
     following:
       ``(i) In general.--A household''; and
       (B) by adding at the end the following:
       ``(ii) Inclusion of certain payments.--In determining the 
     shelter expenses of a household under this paragraph, the 
     State agency shall include any required payment to the 
     landlord of the household without regard to whether the 
     required payment is designated to pay specific charges.''; 
     and
       (2) by adding at the end the following:
       ``(D) Homeless households.--
       ``(i) Alternative deduction.--In lieu of the deduction 
     provided under subparagraph (A), a State agency may elect to 
     allow a household in which all members are homeless 
     individuals, but that is not receiving free shelter 
     throughout the month, to receive a deduction of $143 per 
     month.
       ``(ii) Ineligibility.--The State agency may make a 
     household with extremely low shelter costs ineligible for the 
     alternative deduction under clause (i).''.
       (b) Conforming Amendments.--Section 5 of the Food Stamp Act 
     of 1977 (7 U.S.C. 2014) is amended--
       (1) in subsection (e)--
       (A) by striking paragraph (5); and
       (B) by redesignating paragraphs (6) and (7) as paragraphs 
     (5) and (6), respectively; and
       (2) in subsection (k)(4)(B), by striking ``subsection 
     (e)(7)'' and inserting ``subsection (e)(6)''.

     SEC. 415. SIMPLIFIED UTILITY ALLOWANCE.

       Section 5(e)(6)(C)(iii) of the Food Stamp Act of 1977 (as 
     amended by section 414(b)(1)(B)) is amended--
       (1) in subclause (I)(bb), by inserting ``(without regard to 
     subclause (III))'' after ``Secretary finds''; and
       (2) by adding at the end the following:

       ``(III) Inapplicability of certain restrictions.--Clauses 
     (ii)(II) and (ii)(III) shall not apply in the case of a State 
     agency that has made the use of a standard utility allowance 
     mandatory under subclause (I).''.

     SEC. 416. SIMPLIFIED PROCEDURE FOR DETERMINATION OF EARNED 
                   INCOME.

       Section 5(f)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(f)(1)) is amended by adding at the end the following:
       ``(C) Simplified determination of earned income.--
       ``(i) In general.--A State agency may elect to determine 
     monthly earned income by multiplying weekly income by 4 and 
     biweekly income by 2.
       ``(ii) Adjustment of earned income deduction.--A State 
     agency that makes an election described in clause (i) shall 
     adjust the earned income deduction under subsection (e)(2)(B) 
     to the extent necessary to prevent the election from 
     resulting in increased costs to the food stamp program, as 
     determined consistent with standards promulgated by the 
     Secretary.''.

     SEC. 417. SIMPLIFIED DETERMINATION OF DEDUCTIONS.

       Section 5(f)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(f)(1)) (as amended by section 416) is amended by adding 
     at the end the following:
       ``(D) Simplified determination of deductions.--
       ``(i) In general.--Except as provided in clause (ii), for 
     the purposes of subsection (e), a State agency may elect to 
     disregard until the next redetermination of eligibility under 
     section 11(e)(4) 1 or more types of changes in the 
     circumstances of a household that affect the amount of 
     deductions the household may claim under subsection (e).
       ``(ii) Changes that may not be disregarded.--Under clause 
     (i), a State agency may not disregard--

       ``(I) any reported change of residence; or
       ``(II) under standards prescribed by the Secretary, any 
     change in earned income.''.

     SEC. 418. SIMPLIFIED DEFINITION OF RESOURCES.

       Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(g)) is amended by adding at the end the following:
       ``(6) Exclusion of types of financial resources not 
     considered under certain other federal programs.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall promulgate regulations under which a State 
     agency may, at the option of the State agency, exclude from 
     financial resources under this subsection any types of 
     financial resources that the State agency does not consider 
     when determining eligibility for--
       ``(i) cash assistance under a program funded under part A 
     of title IV of the Social Security Act (42 U.S.C. 601 et 
     seq.); or
       ``(ii) medical assistance under section 1931 of the Social 
     Security Act (42 U.S.C. 1396u-1).
       ``(B) Limitations.--Subparagraph (A) does not authorize a 
     State agency to exclude--
       ``(i) cash;
       ``(ii) licensed vehicles;
       ``(iii) amounts in any account in a financial institution 
     that are readily available to the household; or
       ``(iv) any other similar type of resource the inclusion in 
     financial resources of which the Secretary determines by 
     regulation to be essential to equitable determinations of 
     eligibility under the food stamp program, except to the 
     extent that any of those types of resources are excluded 
     under another paragraph of this subsection.''.

     SEC. 419. ALTERNATIVE ISSUANCE SYSTEMS IN DISASTERS.

       Section 5(h)(3)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(h)(3)(B)) is amended--
       (1) in the first sentence, by inserting ``issuance methods 
     and'' after ``shall adjust''; and
       (2) in the second sentence, by inserting ``, any conditions 
     that make reliance on electronic benefit transfer systems 
     described in section 7(i) impracticable,'' after 
     ``personnel''.

     SEC. 420. STATE OPTION TO REDUCE REPORTING REQUIREMENTS.

       Section 6(c)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(c)(1)) is amended--
       (1) in subparagraph (B), by striking ``on a monthly 
     basis''; and
       (2) by adding at the end the following:
       ``(D) Frequency of reporting.--
       ``(i) In general.--Except as provided in subparagraphs (A) 
     and (C), a State agency may require households that report on 
     a periodic basis to submit reports--

       ``(I) not less often than once each 6 months; but
       ``(II) not more often than once each month.

       ``(ii) Reporting by households with excess income.--A 
     household required to report less often than once each 3 
     months shall, notwithstanding subparagraph (B), report in a 
     manner prescribed by the Secretary if the income of the 
     household for any month exceeds the standard established 
     under section 5(c)(2).''.

[[Page S12912]]

     SEC. 421. BENEFITS FOR ADULTS WITHOUT DEPENDENTS.

       (a) In General.--Section 6(o) of the Food Stamp Act of 1977 
     (7 U.S.C. 2015(o)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B), by striking ``and'' at the end;
       (B) in subparagraph (C)--
       (i) by striking ``subsection (d)(4),'' and inserting 
     ``subsection (d)(4)''; and
       (ii) by striking the period at the end and inserting ``; 
     and''; and
       (C) by adding at the end the following:
       ``(D) a job search program or job search training program 
     if--
       ``(i) the program meets standards established by the 
     Secretary to ensure that the participant is continuously and 
     actively seeking employment in the private sector; and
       ``(ii) no position is currently available for the 
     participant in an employment or training program that meets 
     the requirements of subparagraph (C).'';
       (2) in paragraph (2)--
       (A) by striking ``36-month'' and inserting ``24-month''; 
     and
       (B) by striking ``3'' and inserting ``6'';
       (3) by striking paragraph (5) and inserting the following:
       ``(5) Eligibility of individuals while meeting work 
     requirement.--Notwithstanding paragraph (2), an individual 
     who would otherwise be ineligible under that paragraph shall 
     be eligible to participate in the food stamp program during 
     any period in which the individual meets the work requirement 
     of subparagraph (A), (B), or (C) of that paragraph.''; and
       (4) in paragraph (6)(A)(ii)--
       (A) in subclause (III), by adding ``and'' at the end;
       (B) in subclause (IV)--
       (i) by striking ``3'' and inserting ``6''; and
       (ii) by striking ``; and'' and inserting a period; and
       (C) by striking subclause (V).
       (b) Implementation of Amendments.--For the purpose of 
     implementing the amendments made by subsection (a), a State 
     agency shall disregard any period during which an individual 
     received food stamp benefits before the effective date of 
     this title.

     SEC. 422. PRESERVATION OF ACCESS TO ELECTRONIC BENEFITS.

       (a) In General.--Section 7(i)(1) of the Food Stamp Act of 
     1977 (7 U.S.C. 2016(i)(1)) is amended by adding at the end 
     the following:
       ``(E) Access to ebt systems.--
       ``(i) In general.--No benefits shall be taken off-line or 
     otherwise made inaccessible because of inactivity until at 
     least 180 days have elapsed since a household last accessed 
     the account of the household.
       ``(ii) Notice to household.--In a case in which benefits 
     are taken off-line or otherwise made inaccessible, the 
     household shall be sent a notice that--

       ``(I) explains how to reactivate the benefits; and
       ``(II) offers assistance if the household is having 
     difficulty accessing the benefits of the household.''.

       (b) Applicability.--The amendment made by subsection (a) 
     shall apply with respect to each State agency beginning on 
     the date on which the State agency, after the date of 
     enactment of this Act, enters into a contract to operate an 
     electronic benefit transfer system.

     SEC. 423. COST NEUTRALITY FOR ELECTRONIC BENEFIT TRANSFER 
                   SYSTEMS.

       Section 7(i)(2) of the Food Stamp Act of 1977 (7 U.S.C. 
     2016(i)(2)) is amended--
       (1) by striking subparagraph (A); and
       (2) by redesignating subparagraphs (B) through (I) as 
     subparagraphs (A) through (H), respectively.

     SEC. 424. ALTERNATIVE PROCEDURES FOR RESIDENTS OF CERTAIN 
                   GROUP FACILITIES.

       (a) In General.--Section 8 of the Food Stamp Act of 1977 (7 
     U.S.C. 2017) is amended by adding at the end the following:
       ``(f) Simplified Procedures for Residents of Certain Group 
     Facilities.--
       ``(1) In general.--At the option of the State agency, 
     allotments for residents of facilities described in 
     subparagraph (B), (C), (D), or (E) of section 3(i)(5) may be 
     determined and issued under this subsection in lieu of 
     subsection (a).
       ``(2) Amount of allotment.--The allotment for each eligible 
     resident described in paragraph (1) shall be calculated in 
     accordance with standardized procedures established by the 
     Secretary that take into account the allotments typically 
     received by residents of facilities described in paragraph 
     (1).
       ``(3) Issuance of allotment.--
       ``(A) In general.--The State agency shall issue an 
     allotment determined under this subsection to the 
     administration of a facility described in paragraph (1) as 
     the authorized representative of the residents of the 
     facility.
       ``(B) Adjustment.--The Secretary shall establish procedures 
     to ensure that a facility described in paragraph (1) does not 
     receive a greater proportion of a resident's monthly 
     allotment than the proportion of the month during which the 
     resident lived in the facility.
       ``(4) Departures of covered residents.--
       ``(A) Notification.--Any facility described in paragraph 
     (1) that receives an allotment for a resident under this 
     subsection shall--
       ``(i) notify the State agency promptly on the departure of 
     the resident; and
       ``(ii) notify the resident, before the departure of the 
     resident, that the resident--

       ``(I) is eligible for continued benefits under the food 
     stamp program; and
       ``(II) should contact the State agency concerning 
     continuation of the benefits.

       ``(B) Issuance to departed residents.--On receiving a 
     notification under subparagraph (A)(i) concerning the 
     departure of a resident, the State agency--
       ``(i) shall promptly issue the departed resident an 
     allotment for the days of the month after the departure of 
     the resident (calculated in a manner prescribed by the 
     Secretary) unless the departed resident reapplies to 
     participate in the food stamp program; and
       ``(ii) may issue an allotment for the month following the 
     month of the departure (but not any subsequent month) based 
     on this subsection unless the departed resident reapplies to 
     participate in the food stamp program.
       ``(C) State option.--The State agency may elect not to 
     issue an allotment under subparagraph (B)(i) if the State 
     agency lacks sufficient information on the location of the 
     departed resident to provide the allotment.
       ``(D) Effect of reapplication.--If the departed resident 
     reapplies to participate in the food stamp program, the 
     allotment of the departed resident shall be determined 
     without regard to this subsection.''.
       (b) Conforming Amendments.--
       (1) Section 3(i) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(i)) is amended--
       (A) by striking ``(i) `Household' means (1) an'' and 
     inserting the following:
       ``(i)(1) `Household' means--
       ``(A) an'';
       (B) in the first sentence, by striking ``others, or (2) a 
     group'' and inserting the following: ``others; or
       ``(B) a group'';
       (C) in the second sentence, by striking ``Spouses'' and 
     inserting the following:
       ``(2) Spouses'';
       (D) in the third sentence, by striking ``Notwithstanding'' 
     and inserting the following:
       ``(3) Notwithstanding'';
       (E) in paragraph (3) (as designated by subparagraph (D)), 
     by striking ``the preceding sentences'' and inserting 
     ``paragraphs (1) and (2)'';
       (F) in the fourth sentence, by striking ``In no event'' and 
     inserting the following:
       ``(4) In no event'';
       (G) in the fifth sentence, by striking ``For the purposes 
     of this subsection, residents'' and inserting the following:
       ``(5) For the purposes of this subsection, the following 
     persons shall not be considered to be residents of 
     institutions and shall be considered to be individual 
     households:
       ``(A) Residents''; and
       (H) in paragraph (5) (as designated by subparagraph (G))--
       (i) by striking ``Act, or are individuals'' and inserting 
     the following: ``Act.
       ``(B) Individuals'';
       (ii) by striking ``such section, temporary'' and inserting 
     the following: ``that section.
       ``(C) Temporary'';
       (iii) by striking ``children, residents'' and inserting the 
     following: ``children.
       ``(D) Residents'';
       (iv) by striking ``coupons, and narcotics'' and inserting 
     the following: ``coupons.
       ``(E) Narcotics''; and
       (v) by striking ``shall not'' and all that follows and 
     inserting a period.
       (2) Section 5(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(a)) is amended by striking ``the third sentence of 
     section 3(i)'' each place it appears and inserting ``section 
     3(i)(4)''.
       (3) Section 8(e)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2017(e)(1)) is amended by striking ``the last sentence of 
     section 3(i)'' and inserting ``section 3(i)(5)''.
       (4) Section 17(b)(1)(B)(iv)(III)(aa) of the Food Stamp Act 
     of 1977 (7 U.S.C. 2026(b)(1)(B)(iv)(III)(aa)) is amended by 
     striking ``the last 2 sentences of section 3(i)'' and 
     inserting ``paragraphs (4) and (5) of section 3(i)''.

     SEC. 425. AVAILABILITY OF FOOD STAMP PROGRAM APPLICATIONS ON 
                   THE INTERNET.

       Section 11(e)(2)(B)(ii) of the Food Stamp Act of 1977 (7 
     U.S.C. 2020(e)(2)(B)(ii)) is amended--
       (1) by inserting ``(I)'' after ``(ii)'';
       (2) in subclause (I) (as designated by paragraph (1)), by 
     adding ``and'' at the end; and
       (3) by adding at the end the following:
       ``(II) if the State agency maintains a website for the 
     State agency, shall make the application available on the 
     website in each language in which the State agency makes a 
     printed application available;''.

     SEC. 426. SIMPLIFIED DETERMINATIONS OF CONTINUING 
                   ELIGIBILITY.

       (a) In General.--Section 11(e) of the Food Stamp Act of 
     1977 (7 U.S.C. 2020(e)) is amended--
       (1) by striking paragraph (4) and inserting the following:
       ``(4)(A) that the State agency shall periodically require 
     each household to cooperate in a redetermination of the 
     eligibility of the household.
       ``(B) A redetermination under subparagraph (A) shall--
       ``(i) be based on information supplied by the household; 
     and
       ``(ii) conform to standards established by the Secretary.
       ``(C) The interval between redeterminations of eligibility 
     under subparagraph (A) shall not exceed the eligibility 
     review period;'' and
       (2) in paragraph (10)--

[[Page S12913]]

       (A) by striking ``within the household's certification 
     period''; and
       (B) by striking ``or until'' and all that follows through 
     ``occurs earlier''.
       (b) Conforming Amendments.--
       (1) Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(c)) is amended--
       (A) by striking ``Certification period'' and inserting 
     ``Eligibility review period''; and
       (B) by striking ``certification period'' each place it 
     appears and inserting ``eligibility review period''.
       (2) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) 
     is amended--
       (A) in subsection (d)(2), by striking ``in the 
     certification period which'' and inserting ``that''; and
       (B) in subsection (e) (as amended by section 
     414(b)(1)(B))--
       (i) in paragraph (5)(B)(ii)--

       (I) in subclause (II), by striking ``certification period'' 
     and inserting ``eligibility review period''; and
       (II) in subclause (III), by striking ``has been anticipated 
     for the certification period'' and inserting ``was 
     anticipated when the household applied or at the most recent 
     redetermination of eligibility for the household''; and

       (ii) in paragraph (6)(C)(iii)(II), by striking ``the end of 
     a certification period'' and inserting ``each redetermination 
     of the eligibility of the household''.
       (3) Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) 
     is amended--
       (A) in subsection (c)(1)(C)(iv), by striking 
     ``certification period'' each place it appears and inserting 
     ``interval between required redeterminations of 
     eligibility''; and
       (B) in subsection (d)(1)(D)(v)(II), by striking ``a 
     certification period'' and inserting ``an eligibility review 
     period''.
       (4) Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2017(c)) is amended--
       (A) in the second sentence of paragraph (1), by striking 
     ``within a certification period''; and
       (B) in paragraph (2)(B), by striking ``expiration of'' and 
     all that follows through ``during a certification period,'' 
     and inserting ``termination of benefits to the household,''.
       (5) Section 11(e)(16) of the Food Stamp Act of 1977 (7 
     U.S.C. 2020(e)(16)) is amended by striking ``the 
     certification or recertification'' and inserting 
     ``determining the eligibility''.

     SEC. 427. CLEARINGHOUSE FOR SUCCESSFUL NUTRITION EDUCATION 
                   EFFORTS.

       Section 11(f) of the Food Stamp Act of 1977 (7 U.S.C. 
     2020(f)) is amended by striking paragraph (2) and inserting 
     the following:
       ``(2) Nutrition education clearinghouse.--The Secretary 
     shall--
       ``(A) request State agencies to submit to the Secretary 
     descriptions of successful nutrition education programs 
     designed for use in the food stamp program and other 
     nutrition assistance programs;
       ``(B) make the descriptions submitted under subparagraph 
     (A) available on the website of the Department of 
     Agriculture; and
       ``(C) inform State agencies of the availability of the 
     descriptions on the website.''.

     SEC. 428. TRANSITIONAL FOOD STAMPS FOR FAMILIES MOVING FROM 
                   WELFARE.

       (a) In General.--Section 11 of the Food Stamp Act of 1977 
     (7 U.S.C. 2020) is amended by adding at the end the 
     following:
       ``(s) Transitional Benefits Option.--
       ``(1) In general.--A State agency may provide transitional 
     food stamp benefits to a household that ceases to receive 
     cash assistance under a State program funded under part A of 
     title IV of the Social Security Act (42 U.S.C. 601 et seq.).
       ``(2) Transitional benefits period.--Under paragraph (1), a 
     household may continue to receive food stamp benefits for a 
     period of not more than 6 months after the date on which cash 
     assistance is terminated.
       ``(3) Amount of benefits.--During the transitional benefits 
     period under paragraph (2), a household shall receive an 
     amount of food stamp benefits equal to the allotment received 
     in the month immediately preceding the date on which cash 
     assistance was terminated, adjusted for--
       ``(A) the change in household income as a result of the 
     termination of cash assistance; and
       ``(B) any changes in circumstances that may result in an 
     increase in the food stamp allotment of the household and 
     that the household elects to report.
       ``(4) Determination of future eligibility.--In the final 
     month of the transitional benefits period under paragraph 
     (2), the State agency may--
       ``(A) require the household to cooperate in a 
     redetermination of eligibility; and
       ``(B) initiate a new eligibility review period for the 
     household without regard to whether the preceding eligibility 
     review period has expired.
       ``(5) Limitation.--A household shall not be eligible for 
     transitional benefits under this subsection if the 
     household--
       ``(A) loses eligibility under section 6;
       ``(B) is sanctioned for a failure to perform an action 
     required by Federal, State, or local law relating to a cash 
     assistance program described in paragraph (1); or
       ``(C) is a member of any other category of households 
     designated by the State agency as ineligible for transitional 
     benefits.''.
       (b) Conforming Amendments.--
       (1) Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(c)) is amended by adding at the end the following: ``The 
     limits specified in this section may be extended until the 
     end of any transitional benefit period established under 
     section 11(s).''.
       (2) Section 6(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(c)) is amended by striking ``No household'' and 
     inserting ``Except in a case in which a household is 
     receiving transitional benefits during the transitional 
     benefits period under section 11(s), no household''.

     SEC. 429. DELIVERY TO RETAILERS OF NOTICES OF ADVERSE ACTION.

       Section 14(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2023(a)) is amended by striking paragraph (2) and inserting 
     the following:
       ``(2) Delivery of notices.--A notice under paragraph (1) 
     shall be delivered by any form of delivery that the Secretary 
     determines will provide evidence of the delivery.''.

     SEC. 430. REFORM OF QUALITY CONTROL SYSTEM.

       (a) In General.--Section 16(c) of the Food Stamp Act of 
     1977 (7 U.S.C. 2025(c)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``enhances payment accuracy'' and all that 
     follows through ``(A) the Secretary'' and inserting the 
     following: ``enhances payment accuracy and that has the 
     following elements:
       ``(A) Enhanced administrative funding.--With respect to 
     fiscal year 2001, the Secretary'';
       (B) in subparagraph (A)--
       (i) by striking ``one percentage point to a maximum of 60'' 
     and inserting ``\1/2\ of 1 percentage point to a maximum of 
     55''; and
       (ii) by striking the semicolon at the end and inserting a 
     period; and
       (C) by striking subparagraph (B) and all that follows and 
     inserting the following:
       ``(B) Investigation and initial sanctions.--
       ``(i) Investigation.--Except as provided under subparagraph 
     (C), for any fiscal year in which the Secretary determines 
     that a 95 percent statistical probability exists that the 
     payment error rate of a State agency exceeds the national 
     performance measure for payment error rates announced under 
     paragraph (6) by more than 1 percentage point, other than for 
     good cause shown, the Secretary shall investigate the 
     administration by the State agency of the food stamp program 
     unless the Secretary determines that sufficient information 
     is already available to review the administration by the 
     State agency.
       ``(ii) Initial sanctions.--If an investigation under clause 
     (i) results in a determination that the State agency has been 
     seriously negligent (as determined under standards 
     promulgated by the Secretary), the State agency shall pay the 
     Secretary an amount that reflects the extent of such 
     negligence (as determined under standards promulgated by the 
     Secretary), not to exceed 5 percent of the amount provided to 
     the State agency under subsection (a) for the fiscal year.
       ``(C) Additional sanctions.--If, for any fiscal year, the 
     Secretary determines that a 95 percent statistical 
     probability exists that the payment error rate of a State 
     agency exceeds the national performance measure for payment 
     error rates announced under paragraph (6) by more than 1 
     percentage point, other than for good cause shown, and that 
     the State agency was sanctioned under this paragraph or was 
     the subject of an investigation or review under subparagraph 
     (B)(i) for each of the 2 immediately preceding fiscal years, 
     the State agency shall pay to the Secretary an amount equal 
     to the product obtained by multiplying--
       ``(i) the value of all allotments issued by the State 
     agency in the fiscal year;
       ``(ii) the lesser of--

       ``(I) the ratio that--

       ``(aa) the amount by which the payment error rate of the 
     State agency for the fiscal year exceeds by more than 1 
     percentage point the national performance measure for the 
     fiscal year; bears to
       ``(bb) 10 percent; or

       ``(II) 1; and

       ``(iii) the amount by which the payment error rate of the 
     State agency for the fiscal year exceeds by more than 1 
     percentage point the national performance measure for the 
     fiscal year.
       ``(D) Corrective action plans.--The Secretary shall foster 
     management improvements by the States by requiring State 
     agencies to develop and implement corrective action plans to 
     reduce payment errors.'';
       (2) in paragraph (2)(A), by inserting before the semicolon 
     the following: ``, as adjusted downward as appropriate under 
     paragraph (10)'';
       (3) in paragraph (4), by striking ``(4)'' and all that 
     follows through the end of the first sentence and inserting 
     the following:
       ``(4) Reporting requirements.--The Secretary may require a 
     State agency to report any factors that the Secretary 
     considers necessary to determine a State agency's payment 
     error rate, enhanced administrative funding, claim for 
     payment error under paragraph (1), or performance under the 
     performance measures under paragraph (11).'';
       (4) in paragraph (5), by striking ``(5)'' and all that 
     follows through the end of the second sentence and inserting 
     the following:
       ``(5) Procedures.--To facilitate the implementation of this 
     subsection, each State agency shall expeditiously submit to 
     the Secretary data concerning the operations of the State 
     agency in each fiscal year sufficient for the Secretary to 
     establish the payment error rate for the State agency for the 
     fiscal year, to comply with paragraph (10), and to determine 
     the amount of enhanced

[[Page S12914]]

     administrative funding under paragraph (1)(A), high 
     performance bonus payments under paragraph (11), or claims 
     under subparagraph (B) or (C) of paragraph (1).'';
       (5) in paragraph (6)--
       (A) in the first and third sentences, by striking 
     ``paragraph (5)'' each place it appears and inserting 
     ``paragraph (8)''; and
       (B) in the first sentence, by inserting ``(but determined 
     without regard to paragraph (10))'' before ``times that''; 
     and
       (6) by adding at the end the following:
       ``(10) Adjustments of payment error rate.--
       ``(A) Fiscal year 2002.--
       ``(i) Adjustment for higher percentage of households with 
     earned income.--Subject to subparagraph (B), with respect to 
     fiscal year 2002, in applying paragraph (1), the Secretary 
     shall adjust the payment error rate determined under 
     paragraph (2)(A) as necessary to take into account any 
     increases in errors that result from the State agency's 
     serving a higher percentage of households with earned income 
     than the lesser of--

       ``(I) the percentage of households with earned income that 
     receive food stamps in all States; or
       ``(II) the percentage of households with earned income that 
     received food stamps in the State in fiscal year 1992.

       ``(ii) Adjustment for higher percentage of households with 
     noncitizen members.--Subject to subparagraph (B), with 
     respect to fiscal year 2002, in applying paragraph (1), the 
     Secretary shall adjust the payment error rate determined 
     under paragraph (2)(A) as necessary to take into account any 
     increases in errors that result from the State agency's 
     serving a higher percentage of households with 1 or more 
     members who are not United States citizens than the lesser 
     of--

       ``(I) the percentage of households with 1 or more members 
     who are not United States citizens that receive food stamps 
     in all States; or
       ``(II) the percentage of households with 1 or more members 
     who are not United States citizens that received food stamps 
     in the State in fiscal year 1998.

       ``(B) Expanded applicability to state agencies subject to 
     sanctions.--In the case of a State agency subject to 
     sanctions for fiscal year 2001 or any fiscal year thereafter 
     under paragraph (1), the adjustments described in 
     subparagraph (A) shall apply to the State agency for the 
     fiscal year.
       ``(C) Additional adjustments.--For fiscal year 2003 and 
     each fiscal year thereafter, the Secretary may make such 
     additional adjustments to the payment error rate determined 
     under paragraph (2)(A) as the Secretary determines to be 
     consistent with achieving the purposes of this Act.''.
       (b) Applicability.--Except as otherwise provided in the 
     amendments made by subsection (a), the amendments made by 
     subsection (a) shall apply to fiscal year 2001 and each 
     fiscal year thereafter.

     SEC. 431. IMPROVEMENT OF CALCULATION OF STATE PERFORMANCE 
                   MEASURES.

       (a) In General.--Section 16(c)(8) of the Food Stamp Act of 
     1977 (7 U.S.C. 2025(c)(8)) is amended--
       (1) in subparagraph (B), by striking ``180 days after the 
     end of the fiscal year'' and inserting ``the first May 31 
     after the end of the fiscal year referred to in subparagraph 
     (A)''; and
       (2) in subparagraph (C), by striking ``30 days thereafter'' 
     and inserting ``the first June 30 after the end of the fiscal 
     year referred to in subparagraph (A)''.
       (b) Effective Date.--The amendments made by this section 
     take effect on the date of enactment of this Act.

     SEC. 432. BONUSES FOR STATES THAT DEMONSTRATE HIGH 
                   PERFORMANCE.

       (a) In General.--Section 16(c) of the Food Stamp Act of 
     1977 (7 U.S.C. 2025(c)) (as amended by section 430(a)(6)) is 
     amended by adding at the end the following:
       ``(11) High performance bonus payments.--
       ``(A) In general.--The Secretary shall--
       ``(i) with respect to fiscal year 2002 and each fiscal year 
     thereafter, measure the performance of each State agency with 
     respect to each of the performance measures specified in 
     subparagraph (B); and
       ``(ii) in fiscal year 2003 and each fiscal year thereafter, 
     subject to subparagraphs (C) and (D), make high performance 
     bonus payments to the State agencies with the highest or most 
     improved performance with respect to those performance 
     measures.
       ``(B) Performance measures.--The performance measures 
     specified in this subparagraph are--
       ``(i) the ratio, expressed as a percentage, that--

       ``(I) the number of households in the State that--

       ``(aa) receive food stamps;
       ``(bb) have incomes less than 130 percent of the poverty 
     line (as defined in section 673 of the Community Services 
     Block Grant Act (42 U.S.C. 9902));
       ``(cc) have annual earnings equal to at least 1000 times 
     the Federal minimum hourly rate under the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 201 et seq.); and
       ``(dd) have children under age 18; bears to

       ``(II) the number of households in the State that meet the 
     criteria specified in items (bb) through (dd) of subclause 
     (I); and

       ``(ii) 4 additional performance measures, established by 
     the Secretary in consultation with the National Governors 
     Association, the American Public Human Services Association, 
     and the National Conference of State Legislatures not later 
     than 180 days after the date of enactment of this paragraph, 
     of which not less than 1 performance measure shall relate to 
     provision of timely and appropriate services to applicants 
     for and recipients of food stamp benefits.
       ``(C) High performance bonus payments.--
       ``(i) Definition of caseload.--In this subparagraph, the 
     term `caseload' has the meaning given the term in section 
     6(o)(6)(A).
       ``(ii) Amount of payments.--

       ``(I) In general.--In fiscal year 2003 and each fiscal year 
     thereafter, the Secretary shall--

       ``(aa) make 1 high performance bonus payment of $6,000,000 
     for each of the 5 performance measures under subparagraph 
     (B); and
       ``(bb) allocate the high performance bonus payment with 
     respect to each performance measure in accordance with 
     subclauses (II) and (III).

       ``(II) Payments for performance measures.--In fiscal year 
     2003 and each fiscal year thereafter, the Secretary shall 
     allocate, in accordance with subclause (III), the high 
     performance bonus payment made for each performance measure 
     under subparagraph (B) among the 6 State agencies with, as 
     determined by the Secretary by regulation--

       ``(aa) the greatest improvement in the level of performance 
     with respect to the performance measure between the 2 most 
     recent years for which the Secretary determines that reliable 
     data are available;
       ``(bb) the highest performance in the performance measure 
     for the most recent year for which the Secretary determines 
     that reliable data are available; or
       ``(cc) a combination of the greatest improvement described 
     in item (aa) and the highest performance described in item 
     (bb).

       ``(III) Allocation among state agencies eligible for 
     payments.--A high performance bonus payment under subclause 
     (II) made for a performance measure shall be allocated among 
     the 6 State agencies eligible for the payment in the ratio 
     that--

       ``(aa) the caseload of each of the 6 State agencies 
     eligible for the payment; bears to
       ``(bb) the caseloads of the 6 State agencies eligible for 
     the payment.
       ``(D) Prohibition on receipt of high performance bonus 
     payments by state agencies subject to sanctions.--If, for any 
     fiscal year, a State agency is subject to a sanction under 
     paragraph (1), the State agency shall not be eligible for a 
     high performance bonus payment for the fiscal year.
       ``(E) Payments not subject to judicial review.--A 
     determination by the Secretary whether, and in what amount, 
     to make a high performance bonus payment under this paragraph 
     shall not be subject to judicial review.''.
       (b) Applicability.--The amendment made by subsection (a) 
     takes effect on the date of enactment of this Act.

     SEC. 433. EMPLOYMENT AND TRAINING PROGRAM.

       (a) Levels of Funding.--Section 16(h)(1) of the Food Stamp 
     Act of 1977 (7 U.S.C. 2025(h)(1)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``, to remain available until expended,''; 
     and
       (B) by striking clause (vii) and inserting the following:
       ``(vii) for each of fiscal years 2002 through 2006, 
     $90,000,000, to remain available until expended.'';
       (2) by striking subparagraph (B) and inserting the 
     following:
       ``(B) Allocation.--Funds made available under subparagraph 
     (A) shall be made available to and reallocated among State 
     agencies under a reasonable formula that--
       ``(i) is determined and adjusted by the Secretary; and
       ``(ii) takes into account the number of individuals who are 
     not exempt from the work requirement under section 6(o).''; 
     and
       (3) by striking subparagraphs (E) through (G) and inserting 
     the following:
       ``(E) Additional allocations for states that ensure 
     availability of work opportunities.--
       ``(i) In general.--In addition to the allocations under 
     subparagraph (A), from funds made available under section 
     18(a)(1), the Secretary shall allocate not more than 
     $25,000,000 for each of fiscal years 2002 through 2006 to 
     reimburse a State agency that is eligible under clause (ii) 
     for the costs incurred in serving food stamp recipients who--

       ``(I) are not eligible for an exception under section 
     6(o)(3); and
       ``(II) are placed in and comply with a program described in 
     subparagraph (B) or (C) of section 6(o)(2).

       ``(ii) Eligibility.--To be eligible for an additional 
     allocation under clause (i), a State agency shall--

       ``(I) exhaust the allocation to the State agency under 
     subparagraph (A) (including any reallocation that has been 
     made available under subparagraph (C)); and
       ``(II) make and comply with a commitment to offer a 
     position in a program described in subparagraph (B) or (C) of 
     section 6(o)(2) to each applicant or recipient who--

       ``(aa) is in the last month of the 6-month period described 
     in section 6(o)(2);
       ``(bb) is not eligible for an exception under section 
     6(o)(3);
       ``(cc) is not eligible for a waiver under section 6(o)(4); 
     and
       ``(dd) is not eligible for an exemption under section 
     6(o)(6).''.
       (b) Rescission of Carryover Funds.--Notwithstanding any 
     other provision of law,

[[Page S12915]]

     funds provided under section 16(h)(1)(A) of the Food Stamp 
     Act of 1977 (7 U.S.C. 2025(h)(1)(A)) for any fiscal year 
     before fiscal year 2002 shall cease to be available on the 
     date of enactment of this Act, unless obligated by a State 
     agency before that date.
       (c) Participant Expenses.--Section 6(d)(4)(I)(i)(I) of the 
     Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)(I)(i)(I)) is 
     amended by striking ``$25 per month'' and inserting ``$50 per 
     month''.
       (d) Federal Reimbursement.--Section 16(h)(3) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2025(h)(3)) is amended by 
     striking ``$25'' and inserting ``$50''.
       (e) Effective Date.--The amendments made by this section 
     take effect on the date of enactment of this Act.

     SEC. 434. REAUTHORIZATION OF FOOD STAMP PROGRAM AND FOOD 
                   DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS.

       (a) Reductions in Payments for Administrative Costs.--
     Section 16(k)(3) of the Food Stamp Act of 1977 (7 U.S.C. 
     2025(k)(3)) is amended--
       (1) in the first sentence of subparagraph (A), by striking 
     ``2002'' and inserting ``2006''; and
       (2) in subparagraph (B)(ii), by striking ``2002'' and 
     inserting ``2006''.
       (b) Cash Payment Pilot Projects.--Section 17(b)(1)(B)(vi) 
     of the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(B)(vi)) is 
     amended by striking ``2002'' and inserting ``2006''.
       (c) Grants To Improve Food Stamp Participation.--Section 
     17(i)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(i)(1)(A)) is amended in the first sentence by striking 
     ``2002'' and inserting ``2006''.
       (d) Authorization of Appropriations.--Section 18(a)(1) of 
     the Food Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended 
     in the first sentence by striking ``2002'' and inserting 
     ``2006''.

     SEC. 435. COORDINATION OF PROGRAM INFORMATION EFFORTS.

       Section 16(k)(5) of the Food Stamp Act of 1977 (7 U.S.C. 
     2025(k)(5)) is amended--
       (1) in subparagraph (A), by striking ``No funds'' and 
     inserting ``Except as provided in subparagraph (C), no 
     funds''; and
       (2) by adding at the end the following:
       ``(C) Food stamp informational activities.--Subparagraph 
     (A) shall not apply to any funds or expenditures described in 
     clause (i) or (ii) of subparagraph (B) used to pay the costs 
     of any activity that is eligible for reimbursement under 
     subsection (a)(4).''.

     SEC. 436. EXPANDED GRANT AUTHORITY.

       Section 17(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(a)(1)) is amended--
       (1) by striking ``, by way of making contracts with or 
     grants to public or private organizations or agencies,'' and 
     inserting ``enter into contracts with or make grants to 
     public or private organizations or agencies under this 
     section to''; and
       (2) by adding at the end the following: ``The waiver 
     authority of the Secretary under subsection (b) shall extend 
     to all contracts and grants under this section.''.

     SEC. 437. ACCESS AND OUTREACH PILOT PROJECTS.

       Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is 
     amended by striking subsection (h) and inserting the 
     following:
       ``(h) Access and Outreach Pilot Projects.--
       ``(1) In general.--The Secretary shall make grants to State 
     agencies and other entities to pay the Federal share of the 
     eligible costs of projects to improve--
       ``(A) access by eligible individuals to benefits under the 
     food stamp program; or
       ``(B) outreach to individuals eligible for those benefits.
       ``(2) Federal share.--The Federal share shall be 75 
     percent.
       ``(3) Types of projects.--To be eligible for a grant under 
     this subsection, a project may consist of--
       ``(A) establishing a single site at which individuals may 
     apply for--
       ``(i) benefits under the food stamp program; and
       ``(ii)(I) supplemental security income benefits under title 
     XVI of the Social Security Act (42 U.S.C. 1381 et seq.);
       ``(II) benefits under the medicaid program under title XIX 
     of the Social Security Act (42 U.S.C. 1396 et seq.);
       ``(III) benefits under the State children's health 
     insurance program under title XXI of the Social Security Act 
     (42 U.S.C. 1397aa et seq.);
       ``(IV) benefits under the special supplemental nutrition 
     program for women, infants, and children under section 17 of 
     the Child Nutrition Act of 1966 (42 U.S.C. 1786); or
       ``(V) benefits under such other programs as the Secretary 
     determines to be appropriate;
       ``(B) developing forms that allow an individual to apply 
     for more than 1 of the programs referred to in subparagraph 
     (A);
       ``(C) dispatching State agency personnel to conduct 
     outreach and enroll individuals in the food stamp program and 
     other programs in nontraditional venues (such as shopping 
     malls, schools, community centers, county fairs, clinics, 
     food banks, and job training centers);
       ``(D) developing systems to enable increased participation 
     in the provision of benefits under the food stamp program 
     through farmers' markets, roadside stands, and other 
     community-supported agriculture programs, including wireless 
     electronic benefit transfer systems and other systems 
     appropriate to open-air settings where farmers and other 
     vendors sell directly to consumers;
       ``(E) allowing individuals to submit applications for the 
     food stamp program by means of the telephone or the Internet, 
     in particular individuals who live in rural areas, elderly 
     individuals, and individuals with disabilities;
       ``(F) encouraging consumption of fruit and vegetables by 
     developing a cost-effective system for providing discounts 
     for purchases of fruit and vegetables made through use of 
     electronic benefit transfer cards;
       ``(G) reducing barriers to participation by individuals, 
     with emphasis on working families, eligible immigrants, 
     elderly individuals, and individuals with disabilities;
       ``(H) developing training materials, guidebooks, and other 
     resources to improve access and outreach;
       ``(I) conforming verification practices under the food 
     stamp program with verification practices under other 
     assistance programs; and
       ``(J) such other activities as the Secretary determines to 
     be appropriate.
       ``(4) Selection.--
       ``(A) In general.--The Secretary shall develop criteria for 
     selecting recipients of grants under this subsection that 
     include the consideration of--
       ``(i) the demonstrated record of a State agency or other 
     entity in serving low-income individuals;
       ``(ii) the ability of a State agency or other entity to 
     reach hard-to-serve populations;
       ``(iii) the level of innovative proposals in the 
     application of a State agency or other entity for a grant; 
     and
       ``(iv) the development of partnerships between public and 
     private sector entities and linkages with the community.
       ``(B) Preference.--In selecting recipients of grants under 
     paragraph (1), the Secretary shall provide a preference to 
     any applicant that consists of a partnership between a State 
     and a private entity, such as--
       ``(i) a food bank;
       ``(ii) a community-based organization;
       ``(iii) a public school;
       ``(iv) a publicly-funded health clinic;
       ``(v) a publicly-funded day care center; and
       ``(vi) a nonprofit health or welfare agency.
       ``(C) Geographical distribution of recipients.--
       ``(i) In general.--Subject to clause (ii), the Secretary 
     shall select, from all eligible applications received, at 
     least 1 recipient to receive a grant under this subsection 
     from--

       ``(I) each region of the Department of Agriculture 
     administering the food stamp program; and
       ``(II) each additional rural or urban area that the 
     Secretary determines to be appropriate.

       ``(ii) Exception.--The Secretary shall not be required to 
     select grant recipients under clause (i) to the extent that 
     the Secretary determines that an insufficient number of 
     eligible grant applications has been received.
       ``(5) Project evaluations.--
       ``(A) In general.--The Secretary shall conduct evaluations 
     of projects funded by grants under this subsection.
       ``(B) Limitation.--Not more than 10 percent of funds made 
     available to carry out this subsection shall be used for 
     project evaluations described in subparagraph (A).
       ``(6) Maintenance of effort.--A State agency or other 
     entity shall provide assurances to the Secretary that funds 
     provided to the State agency or other entity under this 
     subsection will be used only to supplement, not to supplant, 
     the amount of Federal, State, and local funds otherwise 
     expended to carry out access and outreach activities in the 
     State under this Act.
       ``(7) Funding.--There is authorized to be appropriated to 
     carry out this subsection $3,000,000 for the period of fiscal 
     years 2003 through 2005.''.

     SEC. 438. CONSOLIDATED BLOCK GRANTS AND ADMINISTRATIVE FUNDS.

       (a) Consolidated Funding.--Section 19(a)(1) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2028(a)(1)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``the Commonwealth of Puerto Rico'' and 
     inserting ``governmental entities specified in subparagraph 
     (D)'';
       (B) in clause (ii), by striking ``and'' at the end; and
       (C) by striking clause (iii) and all that follows and 
     inserting the following:
       ``(iii) for fiscal year 2002, $1,356,000,000; and
       ``(iv) for each of fiscal years 2003 through 2006, the 
     amount provided in clause (iii), as adjusted by the 
     percentage by which the thrifty food plan has been adjusted 
     under section 3(o)(4) between June 30, 2001, and June 30 of 
     the immediately preceding fiscal year;

     to pay the expenditures for nutrition assistance programs for 
     needy persons as described in subparagraphs (B) and (C).'';
       (2) in subparagraph (B)--
       (A) by striking ``(B) The'' and inserting the following:
       ``(B) Maximum payments to commonwealth of puerto rico.--
       ``(i) In general.--The'';
       (B) by inserting ``of Puerto Rico'' after ``Commonwealth'' 
     each place it appears; and
       (C) by adding at the end the following:
       ``(ii) Exception for expenditures for certain systems.--
     Notwithstanding subparagraph (A) and clause (i), the 
     Commonwealth of Puerto Rico may spend not more than 
     $6,000,000 of the amount required to be paid to the 
     Commonwealth for fiscal year 2002 under subparagraph (A) to 
     pay 100 percent of the costs of--

[[Page S12916]]

       ``(I) upgrading and modernizing the electronic data 
     processing system used to carry out nutrition assistance 
     programs for needy persons;
       ``(II) implementing systems to simplify the determination 
     of eligibility to receive that nutrition assistance; and
       ``(III) operating systems to deliver benefits through 
     electronic benefit transfers.''; and

       (3) by adding at the end the following:
       ``(C) American samoa.--For each fiscal year, the Secretary 
     shall reserve 0.4 percent of the funds made available under 
     subparagraph (A) for payment to American Samoa to pay 100 
     percent of the expenditures for a nutrition assistance 
     program extended under section 601(c) of Public Law 96-597 
     (48 U.S.C. 1469d(c)).
       ``(D) Governmental entity.--A governmental entity specified 
     in this subparagraph is--
       ``(i) the Commonwealth of Puerto Rico; and
       ``(ii) for fiscal year 2003 and each fiscal year 
     thereafter, American Samoa.''.
       (b) Conforming Amendment.--Section 24 of the Food Stamp Act 
     of 1977 (7 U.S.C. 2033) is repealed.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section take effect on October 1, 
     2002.
       (2) Exception for expenditures for certain systems.--The 
     amendments made by subsection (a)(2) take effect on the date 
     of enactment of this Act.

     SEC. 439. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

       Section 25 of the Food Stamp Act of 1977 (7 U.S.C. 2034) is 
     amended--
       (1) in subsection (b)(2)(B), by striking ``2002'' and 
     inserting ``2006'';
       (2) in subsection (d)--
       (A) in paragraph (3), by striking ``or'' at the end; and
       (B) by striking paragraph (4) and inserting the following:
       ``(4) encourage long-term planning activities, and 
     multisystem, interagency approaches with multistakeholder 
     collaborations, that build the long-term capacity of 
     communities to address the food and agriculture problems of 
     the communities, such as food policy councils and food 
     planning associations; or
       ``(5) meet, as soon as practicable, specific neighborhood, 
     local, or State food and agriculture needs, including needs 
     for--
       ``(A) infrastructure improvement and development;
       ``(B) planning for long-term solutions; or
       ``(C) the creation of innovative marketing activities that 
     mutually benefit farmers and low-income consumers.''; and
       (3) in subsection (e)(1), by striking ``50'' and inserting 
     ``75''.

     SEC. 440. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD 
                   ASSISTANCE PROGRAM.

       (a) In General.--Section 27 of the Food Stamp Act of 1977 
     (7 U.S.C. 2036) is amended--
       (1) in subsection (a)--
       (A) by striking ``1997 through 2002'' and inserting ``2002 
     through 2006''; and
       (B) by striking ``$100,000,000'' and inserting 
     ``$110,000,000''; and
       (2) by adding at the end the following:
       ``(c) Use of Funds for Related Costs.--
       ``(1) In general.--For each of fiscal years 2002 through 
     2006, the Secretary shall use $10,000,000 of the funds made 
     available under subsection (a) to pay the direct and indirect 
     costs of States relating to the processing, storing, 
     transporting, and distributing to eligible recipient agencies 
     of--
       ``(A) commodities purchased by the Secretary under 
     subsection (a); and
       ``(B) commodities acquired from other sources, including 
     commodities acquired by gleaning (as defined in section 
     111(a) of the Hunger Prevention Act of 1988 (7 U.S.C. 612c 
     note; Public Law 100-435)).
       ``(2) Allocation of funds.--The amount required to be used 
     in accordance with paragraph (1) shall be allocated in 
     accordance with section 204(a) of the Emergency Food 
     Assistance Act of 1983 (7 U.S.C. 7508(a)).''.
       (b) Effective Date.--The amendments made by this section 
     take effect on the date of enactment of this Act.

     SEC. 441. INNOVATIVE PROGRAMS FOR ADDRESSING COMMON COMMUNITY 
                   PROBLEMS.

       The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 28. INNOVATIVE PROGRAMS FOR ADDRESSING COMMON 
                   COMMUNITY PROBLEMS.

       ``(a) In General.--The Secretary shall offer to enter into 
     a contract with a nongovernmental organization described in 
     subsection (b) to coordinate with Federal agencies, States, 
     political subdivisions, and nongovernmental organizations 
     (referred to in this section as `targeted entities') to 
     develop, and recommend to the targeted entities, innovative 
     programs for addressing common community problems, including 
     loss of farms, rural poverty, welfare dependency, hunger, the 
     need for job training, juvenile crime prevention, and the 
     need for self-sufficiency by individuals and communities.
       ``(b) Nongovernmental Organization.--The nongovernmental 
     organization referred to in subsection (a)--
       ``(1) shall be selected on a competitive basis; and
       ``(2) as a condition of entering into the contract--
       ``(A) shall be experienced in working with targeted 
     entities, and in organizing workshops that demonstrate 
     programs to targeted entities;
       ``(B) shall be experienced in identifying programs that 
     effectively address problems described in subsection (a) that 
     can be implemented by other targeted entities;
       ``(C) shall agree--
       ``(i) to contribute in-kind resources toward the 
     establishment and maintenance of programs described in 
     subsection (a); and
       ``(ii) to provide to targeted entities, free of charge, 
     information on the programs;
       ``(D) shall be experienced in, and capable of, receiving 
     information from, and communicating with, targeted entities 
     throughout the United States; and
       ``(E) shall be experienced in operating a national 
     information clearinghouse that addresses 1 or more of the 
     problems described in subsection (a).
       ``(c) Audits.--The Secretary shall establish auditing 
     procedures and otherwise ensure the effective use of funds 
     made available under this section.
       ``(d) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this section, and on October 1, 2002, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     Agriculture to carry out this section $200,000, to remain 
     available until expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.''.

     SEC. 442. REPORT ON USE OF ELECTRONIC BENEFIT TRANSFER 
                   SYSTEMS.

       Not later than 1 year after the date of enactment of this 
     Act, the Secretary of Agriculture shall submit to Congress a 
     report on--
       (1) difficulties relating to use of electronic benefit 
     transfer systems in issuance of food stamp benefits under the 
     Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
       (2) the extent to which there exists fraud, and the types 
     of fraud that exist, in use of the electronic benefit 
     transfer systems; and
       (3) the efforts being made by the Secretary of Agriculture, 
     retailers, electronic benefit transfer system contractors, 
     and States to address the problems described in paragraphs 
     (1) and (2).

     SEC. 443. VITAMIN AND MINERAL SUPPLEMENTS.

       (a) In General.--Section 3(g)(1) of the Food Stamp Act of 
     1977 (7 U.S.C. 2012(g)(1)) is amended by striking ``or food 
     product'' and inserting ``, food product, or dietary 
     supplement that provides exclusively 1 or more vitamins or 
     minerals''.
       (b) Impact Study.--
       (1) In general.--Not later than April 1, 2003, the 
     Secretary of Agriculture shall enter into a contract with a 
     scientific research organization to study and develop a 
     report on the technical issues, economic impacts, and health 
     effects associated with allowing individuals to use benefits 
     under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) to 
     purchase dietary supplements that provide exclusively 1 or 
     more vitamins or minerals (referred to in this subsection as 
     ``vitamin-mineral supplements'').
       (2) Required elements.--At a minimum, the study shall 
     examine--
       (A) the extent to which problems arise in the purchase of 
     vitamin-mineral supplements with electronic benefit transfer 
     cards;
       (B) the extent of any difficulties in distinguishing 
     vitamin-mineral supplements from herbal and botanical 
     supplements for which food stamp benefits may not be used;
       (C) whether participants in the food stamp program spend 
     more on vitamin-mineral supplements than nonparticipants;
       (D) to what extent vitamin-mineral supplements are 
     substituted for other foods purchased with use of food stamp 
     benefits;
       (E) the proportion of the average food stamp allotment that 
     is being used to purchase vitamin-mineral supplements; and
       (F) the extent to which the quality of the diets of 
     participants in the food stamp program has changed as a 
     result of allowing participants to use food stamp benefits to 
     purchase vitamin-mineral supplements.
       (3) Report.--The report required under paragraph (1) shall 
     be submitted to the Secretary of Agriculture not later than 2 
     years after the date on which the contract referred to in 
     that paragraph is entered into.
       (4) Authorization of appropriations.--There is authorized 
     to be appropriated $3,000,000 to carry out this subsection.

                  Subtitle B--Miscellaneous Provisions

     SEC. 451. REAUTHORIZATION OF COMMODITY PROGRAMS.

       (a) Commodity Distribution Program.--Section 4(a) of the 
     Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 
     612c note; Public Law 93-86) is amended in the first sentence 
     by striking ``2002'' and inserting ``2006''.
       (b) Commodity Supplemental Food Program.--Section 5 of the 
     Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 
     612c note; Public Law 93-86) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Grants Per Assigned Caseload Slot.--
       ``(1) In general.--In carrying out the program under 
     section 4 (referred to in this section as the `commodity 
     supplemental food program'), for each of fiscal years 2003 
     through 2006, the Secretary shall provide to each State 
     agency from funds made available to carry out that section 
     (including any such

[[Page S12917]]

     funds remaining available from the preceding fiscal year), a 
     grant per assigned caseload slot for administrative costs 
     incurred by the State agency and local agencies in the State 
     in operating the commodity supplemental food program.
       ``(2) Amount of grants.--For each of fiscal years 2003 
     through 2006, the amount of each grant per caseload slot 
     shall be equal to $50, adjusted by the percentage change 
     between--
       ``(A) the value of the State and local government price 
     index, as published by the Bureau of Economic Analysis of the 
     Department of Commerce, for the 12-month period ending June 
     30 of the second preceding fiscal year; and
       ``(B) the value of that index for the 12-month period 
     ending June 30 of the preceding fiscal year.''; and
       (2) in subsection (d)(2), by striking ``2002'' each place 
     it appears and inserting ``2006''.
       (c) Distribution of Surplus Commodities to Special 
     Nutrition Projects.--Section 1114(a)(2)(A) of the Agriculture 
     and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended in the 
     first sentence by striking ``2002'' and inserting ``2006''.
       (d) Emergency Food Assistance.--Section 204(a)(1) of the 
     Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) 
     is amended in the first sentence--
       (1) by striking ``2002'' and inserting ``2006'';
       (2) by striking ``administrative''; and
       (3) by inserting ``storage,'' after ``processing,''.

     SEC. 452. PARTIAL RESTORATION OF BENEFITS TO LEGAL 
                   IMMIGRANTS.

       (a) Restoration of Benefits to All Qualified Alien 
     Children.--
       (1) In general.--Section 402(a)(2)(J) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (8 U.S.C. 1612(a)(2)(J)) is amended by striking ``who'' 
     and all that follows through ``is under'' and inserting ``who 
     is under''.
       (2) Conforming amendments.--
       (A) Section 403(c)(2) of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1613(c)(2)) is amended by adding at the end the following:
       ``(L) Assistance or benefits under the Food Stamp Act of 
     1977 (7 U.S.C. 2011 et seq.).''.
       (B) Section 421(d) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 1631(d)) is 
     amended by adding at the end the following:
       ``(3) This section shall not apply to assistance or 
     benefits under the Food Stamp Act of 1977 (7 U.S.C. 2011 et 
     seq.) to the extent that a qualified alien is eligible under 
     section 402(a)(2)(J).''.
       (C) Section 5(i)(2)(E) of the Food Stamp Act of 1977 (7 
     U.S.C. 2014(i)(2)(E)) is amended by inserting before the 
     period at the end the following: ``, or to any alien who is 
     under 18 years of age''.
       (3) Applicability.--The amendments made by this subsection 
     shall apply to fiscal year 2004 and each fiscal year 
     thereafter.
       (b) Work Requirement for Legal Immigrants.--
       (1) Working immigrant families.--Section 
     402(a)(2)(B)(ii)(I) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1612(a)(2)(B)(ii)(I)) is amended by striking ``40'' and 
     inserting ``40 (or 16, in the case of the specified Federal 
     program described in paragraph (3)(B))''.
       (2) Conforming amendments.--
       (A) Section 213A(a)(3)(A) of the Immigration and 
     Nationality Act (8 U.S.C. 1183a(a)(3)(A)) is amended by 
     striking ``40'' and inserting ``40 (or 16, in the case of the 
     specified Federal program described in section 402(a)(3)(B) 
     of the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996 (8 U.S.C. 1612(a)(3)(B)))''.
       (B) Section 421(b)(2)(A) of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1631(b)(2)(A)) is amended by striking ``40'' and inserting 
     ``40 (or 16, in the case of the specified Federal program 
     described in section 402(a)(3)(B))''.
       (c) Restoration of Benefits to Refugees and Asylees.--
     Section 402(a)(2) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)) 
     is amended--
       (1) in subparagraph (A), by striking ``programs described 
     in paragraph (3)'' and inserting ``program described in 
     paragraph (3)(A)''; and
       (2) by adding at the end the following:
       ``(L) Food stamp exception for refugees and asylees.--With 
     respect to eligibility for benefits for the specified Federal 
     program described in paragraph (3)(B), paragraph (1) shall 
     not apply to an alien with respect to which an action 
     described in subparagraph (A) was taken and was not 
     revoked.''.
       (d) Restoration of Benefits to Disabled Aliens.--Section 
     402(a)(2)(F) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1612(a)(2)(F)) is amended by striking ``(i) was'' and all 
     that follows through ``(II) in the case'' and inserting the 
     following:
       ``(i) in the case of the specified Federal program 
     described in paragraph (3)(A)--

       ``(I) was lawfully residing in the United States on August 
     22, 1996; and
       ``(II) is blind or disabled, as defined in paragraph (2) or 
     (3) of section 1614(a) of the Social Security Act (42 U.S.C. 
     1382c(a)); and

       ``(ii) in the case''.

     SEC. 453. COMMODITIES FOR SCHOOL LUNCH PROGRAMS.

       (a) In General.--Section 6(e)(1)(B) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1755(e)(1)(B)) 
     is amended by striking ``2001'' and inserting ``2003''.
       (b) Effective Date.--The amendment made by this section 
     takes effect on the date of enactment of this Act.

     SEC. 454. ELIGIBILITY FOR FREE AND REDUCED PRICE MEALS.

       (a) In General.--Section 9(b) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1758(b)) is amended by 
     adding at the end the following:
       ``(7) Exclusion of certain military housing allowances.--
     For each of fiscal years 2002 and 2003, the amount of a basic 
     allowance provided under section 403 of title 37, United 
     States Code, on behalf of a member of a uniformed service for 
     housing that is acquired or constructed under subchapter IV 
     of chapter 169 of title 10, United States Code, or any 
     related provision of law, shall not be considered to be 
     income for the purpose of determining the eligibility of a 
     child who is a member of the household of the member of a 
     uniformed service for free or reduced price lunches under 
     this Act.''.
       (b) Effective Date.--The amendment made by this section 
     takes effect on the date of enactment of this Act.

     SEC. 455. ELIGIBILITY FOR ASSISTANCE UNDER THE SPECIAL 
                   SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, 
                   INFANTS, AND CHILDREN.

       (a) In General.--Section 17(d)(2)(B)(i) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(d)(2)(B)(i)) is 
     amended--
       (1) by striking ``basic allowance for housing'' and 
     inserting the following: ``basic allowance--

       ``(I) for housing'';

       (2) by striking ``and'' at the end and inserting ``or''; 
     and
       (3) by adding at the end the following:

       ``(II) provided under section 403 of title 37, United 
     States Code, for housing that is acquired or constructed 
     under subchapter IV of chapter 169 of title 10, United States 
     Code, or any related provision of law; and''.

       (b) Effective Date.--The amendments made by this section 
     take effect on the date of enactment of this Act.

     SEC. 456. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

       (a) Establishment.--The Secretary of Agriculture shall 
     carry out and expand a seniors farmers' market nutrition 
     program.
       (b) Program Purposes.--The purposes of the seniors farmers' 
     market nutrition program are--
       (1) to provide to low-income seniors resources in the form 
     of fresh, nutritious, unprepared, locally grown fruits, 
     vegetables, and herbs from farmers' markets, roadside stands, 
     and community-supported agriculture programs;
       (2) to increase domestic consumption of agricultural 
     commodities by expanding or assisting in the expansion of 
     domestic farmers' markets, roadside stands, and community-
     supported agriculture programs; and
       (3) to develop or aid in the development of new farmers' 
     markets, roadside stands, and community-supported agriculture 
     programs.
       (c) Regulations.--The Secretary of Agriculture may 
     promulgate such regulations as the Secretary considers 
     necessary to carry out the seniors farmers' market nutrition 
     program under this section.
       (d) Funding.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     Agriculture to carry out this section $15,000,000.
       (2) Receipt and acceptance.--The Secretary of Agriculture 
     shall be entitled to receive, shall accept, and shall use to 
     carry out this section the funds transferred under paragraph 
     (1), without further appropriation.

     SEC. 457. FRUIT AND VEGETABLE PILOT PROGRAM.

       (a) In General.--In the school year beginning July 2002, 
     the Secretary of Agriculture shall use funds made available 
     under section 32 of the Act of August 24, 1935 (7 U.S.C. 
     612c), to conduct a pilot program to make available to 
     students, in 25 elementary or secondary schools in each of 4 
     States, and in elementary or secondary schools on 1 Indian 
     reservation, free fruits and vegetables throughout the school 
     day in--
       (1) a cafeteria;
       (2) a student lounge; or
       (3) another designated room of the school.
       (b) Publicity.--A school that participates in the pilot 
     program shall widely publicize within the school the 
     availability of free fruits and vegetables under the pilot 
     program.
       (c) Evaluation of Pilot Program.--
       (1) In general.--The Secretary of Agriculture shall conduct 
     an evaluation of the results of the pilot program to 
     determine--
       (A) whether students took advantage of the pilot program;
       (B) whether interest in the pilot program increased or 
     lessened over time; and
       (C) what effect, if any, the pilot program had on vending 
     machine sales.
       (2) Funding.--The Secretary shall use $200,000 of the funds 
     described in subsection (a) to carry out the evaluation under 
     this subsection.

     SEC. 458. CONGRESSIONAL HUNGER FELLOWS PROGRAM.

       (a) Short Title.--This section may be cited as the 
     ``Congressional Hunger Fellows Act of 2001''.
       (b) Findings.--Congress finds that--
       (1) there are--
       (A) a critical need for compassionate individuals who are 
     committed to assisting people who suffer from hunger; and

[[Page S12918]]

       (B) a need for those individuals to initiate and administer 
     solutions to the hunger problem;
       (2) Bill Emerson, the distinguished late Representative 
     from the 8th District of Missouri, demonstrated--
       (A) his commitment to solving the problem of hunger in a 
     bipartisan manner;
       (B) his commitment to public service; and
       (C) his great affection for the institution and the ideals 
     of Congress;
       (3) George T. (Mickey) Leland, the distinguished late 
     Representative from the 18th District of Texas, 
     demonstrated--
       (A) his compassion for individuals in need;
       (B) his high regard for public service; and
       (C) his lively exercise of political talents;
       (4) the special concern that Mr. Emerson and Mr. Leland 
     demonstrated during their lives for the hungry and poor was 
     an inspiration for others to work toward the goals of 
     equality and justice for all; and
       (5) since those 2 outstanding leaders maintained a special 
     bond of friendship regardless of political affiliation and 
     worked together to encourage future leaders to recognize and 
     provide service to others, it is especially appropriate to 
     honor the memory of Mr. Emerson and Mr. Leland by 
     establishing a fellowship program to develop and train the 
     future leaders of the United States to pursue careers in 
     humanitarian service.
       (c) Definitions.--In this section:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on Agriculture and the Committee on 
     International Relations of the House of Representatives; and
       (B) the Committee on Agriculture, Nutrition, and Forestry 
     and the Committee on Foreign Relations of the Senate.
       (2) Board.--The term ``Board'' means the Board of Trustees 
     of the Program.
       (3) Fund.--The term ``Fund'' means the Congressional Hunger 
     Fellows Trust Fund established by subsection (g).
       (4) Program.--The term ``Program'' means the Congressional 
     Hunger Fellows Program established by subsection (d).
       (d) Establishment.--There is established as an independent 
     entity of the legislative branch of the United States 
     Government an entity to be known as the ``Congressional 
     Hunger Fellows Program''.
       (e) Board of Trustees.--
       (1) In general.--The Program shall be subject to the 
     supervision and direction of a Board of Trustees.
       (2) Members of the board.--
       (A) Appointment.--
       (i) In general.--The Board shall be composed of 6 voting 
     members appointed under clause (ii) and 1 nonvoting ex-
     officio member designated by clause (iii).
       (ii) Voting members.--The voting members of the Board shall 
     be the following:

       (I) 2 members appointed by the Speaker of the House of 
     Representatives.
       (II) 1 member appointed by the minority leader of the House 
     of Representatives.
       (III) 2 members appointed by the majority leader of the 
     Senate.
       (IV) 1 member appointed by the minority leader of the 
     Senate.

       (iii) Nonvoting member.--The Executive Director of the 
     Program shall serve as a nonvoting ex-officio member of the 
     Board.
       (B) Terms.--
       (i) In general.--Each member of the Board shall serve for a 
     term of 4 years.
       (ii) Incomplete term.--If a member of the Board does not 
     serve the full term of the member, the individual appointed 
     to fill the resulting vacancy shall be appointed for the 
     remainder of the term of the predecessor of the individual.
       (C) Vacancy.--A vacancy on the Board--
       (i) shall not affect the powers of the Board; and
       (ii) shall be filled in the same manner as the original 
     appointment was made.
       (D) Chairperson.--As the first order of business of the 
     first meeting of the Board, the members shall elect a 
     Chairperson.
       (E) Compensation.--
       (i) In general.--Subject to clause (ii), a member of the 
     Board shall not receive compensation for service on the 
     Board.
       (ii) Travel.--A member of the Board shall be allowed travel 
     expenses, including per diem in lieu of subsistence, at rates 
     authorized for an employee of an agency under subchapter I of 
     chapter 57 of title 5, United States Code, while away from 
     the home or regular place of business of the member in the 
     performance of the duties of the Board.
       (3) Duties.--
       (A) Bylaws.--
       (i) Establishment.--The Board shall establish such bylaws 
     and other regulations as are appropriate to enable the Board 
     to carry out this section, including the duties described in 
     this paragraph.
       (ii) Contents.--Bylaws and other regulations established 
     under clause (i) shall include provisions--

       (I) for appropriate fiscal control, accountability for 
     funds, and operating principles;
       (II) to prevent any conflict of interest, or the appearance 
     of any conflict of interest, in--

       (aa) the procurement and employment actions taken by the 
     Board or by any officer or employee of the Board; and
       (bb) the selection and placement of individuals in the 
     fellowships developed under the Program;

       (III) for the resolution of a tie vote of the members of 
     the Board; and
       (IV) for authorization of travel for members of the Board.

       (iii) Submission to congress.--Not later than 90 days after 
     the date of the first meeting of the Board, the Chairperson 
     of the Board shall submit to the appropriate congressional 
     committees a copy of the bylaws established by the Board.
       (B) Budget.--For each fiscal year in which the Program is 
     in operation--
       (i) the Board shall determine a budget for the Program for 
     the fiscal year; and
       (ii) all spending by the Program shall be in accordance 
     with the budget unless a change is approved by the Board.
       (C) Process for selection and placement of fellows.--The 
     Board shall review and approve the process established by the 
     Executive Director for the selection and placement of 
     individuals in the fellowships developed under the Program.
       (D) Allocation of funds to fellowships.--The Board shall 
     determine--
       (i) the priority of the programs to be carried out under 
     this section; and
       (ii) the amount of funds to be allocated for the 
     fellowships established under subsection (f)(3)(A).
       (f) Purposes; Authority of Program.--
       (1) Purposes.--The purposes of the Program are--
       (A) to encourage future leaders of the United States to 
     pursue careers in humanitarian service;
       (B) to recognize the needs of people who are hungry and 
     poor;
       (C) to provide assistance and compassion for people in 
     need;
       (D) to increase awareness of the importance of public 
     service; and
       (E) to provide training and development opportunities for 
     the leaders through placement in programs operated by 
     appropriate entities.
       (2) Authority.--The Program may develop fellowships to 
     carry out the purposes of the Program, including the 
     fellowships described in paragraph (3).
       (3) Fellowships.--
       (A) In general.--The Program shall establish and carry out 
     the Bill Emerson Hunger Fellowship and the Mickey Leland 
     Hunger Fellowship.
       (B) Curriculum.--
       (i) In general.--The fellowships established under 
     subparagraph (A) shall provide experience and training to 
     develop the skills and understanding necessary to improve the 
     humanitarian conditions and the lives of individuals who 
     suffer from hunger, including--

       (I) training in direct service to the hungry in conjunction 
     with community-based organizations through a program of field 
     placement; and
       (II) experience in policy development through placement in 
     a governmental entity or nonprofit organization.

       (ii) Focus.--

       (I) Bill emerson hunger fellowship.--The Bill Emerson 
     Hunger Fellowship shall address hunger and other humanitarian 
     needs in the United States.
       (II) Mickey leland hunger fellowship.--The Mickey Leland 
     Hunger Fellowship shall address international hunger and 
     other humanitarian needs.

       (iii) Work plan.--To carry out clause (i) and to assist in 
     the evaluation of the fellowships under paragraph (4), the 
     Program shall, for each fellow, approve a work plan that 
     identifies the target objectives for the fellow in the 
     fellowship, including the specific duties and 
     responsibilities relating to the objectives.
       (C) Period of fellowship.--
       (i) Emerson fellowship.--A Bill Emerson Hunger Fellowship 
     awarded under this paragraph shall be for a period of not 
     more than 1 year.
       (ii) Leland fellowship.--A Mickey Leland Hunger Fellowship 
     awarded under this paragraph shall be for a period of not 
     more than 2 years, of which not less than 1 year shall be 
     dedicated to fulfilling the requirement of subparagraph 
     (B)(i)(I).
       (D) Selection of fellows.--
       (i) In general.--A fellowship shall be awarded through a 
     nationwide competition established by the Program.
       (ii) Qualification.--A successful applicant shall be an 
     individual who has demonstrated--

       (I) an intent to pursue a career in humanitarian service 
     and outstanding potential for such a career;
       (II) leadership potential or leadership experience;
       (III) diverse life experience;
       (IV) proficient writing and speaking skills;
       (V) an ability to live in poor or diverse communities; and
       (VI) such other attributes as the Board determines to be 
     appropriate.

       (iii) Amount of award.--

       (I) In general.--Each individual awarded a fellowship under 
     this paragraph shall receive a living allowance and, subject 
     to subclause (II), an end-of-service award as determined by 
     the Program.
       (II) Requirement for successful completion of fellowship.--
     Each individual awarded a fellowship under this paragraph 
     shall be entitled to receive an end-of-service award at an 
     appropriate rate for each month of satisfactory service as 
     determined by the Executive Director.

       (iv) Recognition of fellowship award.--

       (I) Emerson fellow.--An individual awarded a Bill Emerson 
     Hunger Fellowship shall be known as an ``Emerson Fellow''.
       (II) Leland fellow.--An individual awarded a Mickey Leland 
     Hunger Fellowship shall be known as a ``Leland Fellow''.

[[Page S12919]]

       (4) Evaluations.--
       (A) In general.--The Program shall conduct periodic 
     evaluations of the Bill Emerson and Mickey Leland Hunger 
     Fellowships.
       (B) Required elements.--Each evaluation shall include--
       (i) an assessment of the successful completion of the work 
     plan of each fellow;
       (ii) an assessment of the impact of the fellowship on the 
     fellows;
       (iii) an assessment of the accomplishment of the purposes 
     of the Program; and
       (iv) an assessment of the impact of each fellow on the 
     community.
       (g) Trust Fund.--
       (1) Establishment.--There is established in the Treasury of 
     the United States a fund to be known as the ``Congressional 
     Hunger Fellows Trust Fund'', consisting of--
       (A) amounts appropriated to the Fund under subsection (k);
       (B) any amounts earned on investment of amounts in the Fund 
     under paragraph (2); and
       (C) amounts received under subsection (i)(3)(A).
       (2) Investment of amounts.--
       (A) In general.--
       (i) Authority to invest.--The Secretary of the Treasury 
     shall invest such portion of the Fund as is not, in the 
     judgment of the Secretary of the Treasury, required to meet 
     current withdrawals.
       (ii) Types of investments.--Each investment may be made 
     only in an interest-bearing obligation of the United States 
     or an obligation guaranteed as to principal and interest by 
     the United States that, as determined by the Secretary of the 
     Treasury in consultation with the Board, has a maturity 
     suitable for the Fund.
       (B) Acquisition of obligations.--For the purpose of 
     investments under subparagraph (A), obligations may be 
     acquired--
       (i) on original issue at the issue price; or
       (ii) by purchase of outstanding obligations at the market 
     price.
       (C) Sale of obligations.--Any obligation acquired by the 
     Fund may be sold by the Secretary of the Treasury at the 
     market price.
       (D) Credits to fund.--The interest on, and the proceeds 
     from the sale or redemption of, any obligations held in the 
     Fund shall be credited to and form a part of the Fund.
       (3) Transfers of amounts.--
       (A) In general.--The amounts required to be transferred to 
     the Fund under this subsection shall be transferred at least 
     monthly from the general fund of the Treasury to the Fund on 
     the basis of estimates made by the Secretary of the Treasury.
       (B) Adjustments.--Proper adjustment shall be made in 
     amounts subsequently transferred to the extent prior 
     estimates were in excess of or less than the amounts required 
     to be transferred.
       (h) Expenditures; Audits.--
       (1) In general.--The Secretary of the Treasury shall 
     transfer to the Program from the amounts described in 
     subsections (g)(2)(D) and (i)(3)(A) such sums as the Board 
     determines to be necessary to enable the Program to carry out 
     this section.
       (2) Limitation.--The Secretary may not transfer to the 
     Program the amounts appropriated to the Fund under subsection 
     (k).
       (3) Use of funds.--Funds transferred to the Program under 
     paragraph (1) shall be used--
       (A) to provide a living allowance for the fellows;
       (B) to defray the costs of transportation of the fellows to 
     the fellowship placement sites;
       (C) to defray the costs of appropriate insurance of the 
     fellows, the Program, and the Board;
       (D) to defray the costs of preservice and midservice 
     education and training of fellows;
       (E) to pay staff described in subsection (i);
       (F) to make end-of-service awards under subsection 
     (f)(3)(D)(iii)(II); and
       (G) for such other purposes as the Board determines to be 
     appropriate to carry out the Program.
       (4) Audit by comptroller general.--
       (A) In general.--The Comptroller General of the United 
     States shall conduct an annual audit of the accounts of the 
     Program.
       (B) Books.--The Program shall make available to the 
     Comptroller General all books, accounts, financial records, 
     reports, files, and other papers, things, or property 
     belonging to or in use by the Program and necessary to 
     facilitate the audit.
       (C) Report to congress.--The Comptroller General shall 
     submit to the appropriate congressional committees a copy of 
     the results of each audit under subparagraph (A).
       (i) Staff; Powers of Program.--
       (1) Executive director.--
       (A) In general.--The Board shall appoint an Executive 
     Director of the Program who shall--
       (i) administer the Program; and
       (ii) carry out such other functions consistent with this 
     section as the Board shall prescribe.
       (B) Restriction.--The Executive Director may not serve as 
     Chairperson of the Board.
       (C) Compensation.--The Executive Director shall be paid at 
     a rate not to exceed the rate payable for level V of the 
     Executive Schedule under section 5316 of title 5, United 
     States Code.
       (2) Staff.--
       (A) In general.--With the approval of a majority of the 
     Board, the Executive Director may appoint and fix the pay of 
     such additional personnel as the Executive Director considers 
     necessary to carry out this section.
       (B) Compensation.--An individual appointed under 
     subparagraph (A) shall be paid at a rate not to exceed the 
     rate payable for level GS-15 of the General Schedule.
       (3) Powers.--
       (A) Gifts.--
       (i) In general.--The Program may solicit, accept, use, and 
     dispose of gifts, bequests, or devises of services or 
     property, both real and personal, for the purpose of aiding 
     or facilitating the work of the Program.
       (ii) Use of gifts.--Gifts, bequests, or devises of money 
     and proceeds from sales of other property received as gifts, 
     bequests, or devises shall--

       (I) be deposited in the Fund; and
       (II) be available for disbursement on order of the Board.

       (B) Procurement of temporary and intermittent services.--To 
     carry out this section, the Program may procure temporary and 
     intermittent services in accordance with section 3109(b) of 
     title 5, United States Code, at rates for individuals that do 
     not exceed the daily equivalent of the annual rate of basic 
     pay payable for level GS-15 of the General Schedule.
       (C) Contract authority.--To carry out this section, the 
     Program may, with the approval of a majority of the members 
     of the Board, contract with and compensate Government and 
     private agencies or persons without regard to section 3709 of 
     the Revised Statutes (41 U.S.C. 5).
       (D) Other necessary expenditures.--
       (i) In general.--Subject to clause (ii), the Program may 
     make such other expenditures as the Program considers 
     necessary to carry out this section.
       (ii) Prohibition.--The Program may not expend funds to 
     develop new or expanded projects at which fellows may be 
     placed.
       (j) Report.--Not later than December 31 of each year, the 
     Board shall submit to the appropriate congressional 
     committees a report on the activities of the Program carried 
     out during the preceding fiscal year that includes--
       (1) an analysis of the evaluations conducted under 
     subsection (f)(4) during the fiscal year; and
       (2) a statement of--
       (A) the total amount of funds attributable to gifts 
     received by the Program in the fiscal year under subsection 
     (i)(3)(A); and
       (B) the total amount of funds described in subparagraph (A) 
     that were expended to carry out the Program in the fiscal 
     year.
       (k) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $18,000,000.
       (l) Effective Date.--This section takes effect on October 
     1, 2002.

     SEC. 459. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.

       (a) Establishment.--The Secretary of Agriculture may 
     establish, in not more than 15 States, a pilot program to 
     increase the domestic consumption of fresh fruits and 
     vegetables.
       (b) Purpose.--The purpose of the program shall be to 
     provide funds to States to assist eligible public and private 
     sector entities with cost-share assistance to carry out 
     demonstration projects--
       (1) to increase fruit and vegetable consumption; and
       (2) to convey related health promotion messages.
       (c) Priority.--To the maximum extent practicable, the 
     Secretary shall--
       (1) establish the program in States in which the production 
     of fruits or vegetables is a significant industry, as 
     determined by the Secretary; and
       (2) base the program on strategic initiatives, including--
       (A) health promotion and education interventions;
       (B) public service and paid advertising or marketing 
     activities;
       (C) health promotion campaigns relating to locally grown 
     fruits and vegetables; and
       (D) social marketing campaigns.
       (d) Participant Eligibility.--In selecting States to 
     participate in the program, the Secretary shall take into 
     consideration, with respect to projects and activities 
     proposed to be carried out by the State under the program--
       (1) experience in carrying out similar projects or 
     activities;
       (2) innovation; and
       (3) the ability of the State--
       (A) to conduct marketing campaigns for, promote, and track 
     increases in levels of, produce consumption; and
       (B) to optimize the availability of produce through 
     distribution of produce.
       (e) Federal Share.--The Federal share of the cost of any 
     project or activity carried out using funds provided under 
     this section shall be 50 percent.
       (f) Use of Funds.--Funds made available to carry out this 
     section shall not be made available to any foreign for-profit 
     corporation.
       (g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $25,000,000 for 
     each of fiscal years 2002 through 2006.

     SEC. 460. EFFECTIVE DATE.

       Except as otherwise provided in this title, the amendments 
     made by this title take effect on September 1, 2002, except 
     that a State agency may, at the option of the State agency, 
     elect not to implement any or all of the amendments until 
     October 1, 2002.

[[Page S12920]]

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

     SEC. 501. DIRECT LOANS.

       Section 302(b)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1922(b)(1)) is amended by striking 
     ``operated'' and inserting ``participated in the business 
     operations of''.

     SEC. 502. FINANCING OF BRIDGE LOANS.

       Section 303(a)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1923(a)(1)) is amended--
       (1) in subparagraph (C), by striking ``or'' at the end;
       (2) in subparagraph (D), by striking the period at the end 
     and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(E) refinancing, during a fiscal year, a short-term, 
     temporary bridge loan made by a commercial or cooperative 
     lender to a beginning farmer or rancher for the acquisition 
     of land for a farm or ranch, if--
       ``(i) the Secretary approved an application for a direct 
     farm ownership loan to the beginning farmer or rancher for 
     acquisition of the land; and
       ``(ii) funds for direct farm ownership loans under section 
     346(b) were not available at the time at which the 
     application was approved.''.

     SEC. 503. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS.

       Section 305 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1925) is amended by striking subsection (a) and 
     inserting the following:
       ``(a) In General.--The Secretary shall not make or insure a 
     loan under section 302, 303, 304, 310D, or 310E that would 
     cause the unpaid indebtedness under those sections of any 1 
     borrower to exceed the lesser of--
       ``(1) the value of the farm or other security; or
       ``(2)(A) in the case of a loan made by the Secretary--
       ``(i) to a beginning farmer or rancher, $250,000, as 
     adjusted (beginning with fiscal year 2003) by the inflation 
     percentage applicable to the fiscal year in which the loan is 
     made; or
       ``(ii) to a borrower other than a beginning farmer or 
     rancher, $200,000; or
       ``(B) in the case of a loan guaranteed by the Secretary, 
     $700,000, as--
       ``(i) adjusted (beginning with fiscal year 2000) by the 
     inflation percentage applicable to the fiscal year in which 
     the loan is guaranteed; and
       ``(ii) reduced by the amount of any unpaid indebtedness of 
     the borrower on loans under subtitle B that are guaranteed by 
     the Secretary.''.

     SEC. 504. JOINT FINANCING ARRANGEMENTS.

       Section 307(a)(3)(D) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1927(a)(3)(D)) is amended--
       (1) by striking ``If'' and inserting the following:
       ``(i) In general.--Subject to clause (ii), if''; and
       (2) by adding at the end the following:
       ``(ii) Beginning farmers and ranchers.--The interest rate 
     charged a beginning farmer or rancher for a loan described in 
     clause (i) shall be 50 basis points less than the rate 
     charged farmers and ranchers that are not beginning farmers 
     or ranchers.''.

     SEC. 505. GUARANTEE PERCENTAGE FOR BEGINNING FARMERS AND 
                   RANCHERS.

       Section 309(h)(6) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1929(h)(6)) is amended by striking 
     ``guaranteed up'' and all that follows through ``more than'' 
     and inserting ``guaranteed at 95 percent.--The Secretary 
     shall guarantee''.

     SEC. 506. GUARANTEE OF LOANS MADE UNDER STATE BEGINNING 
                   FARMER OR RANCHER PROGRAMS.

       Section 309 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1929) is amended by adding at the end the 
     following:
       ``(j) Guarantee of Loans Made Under State Beginning Farmer 
     or Rancher Programs.--The Secretary may guarantee under this 
     title a loan made under a State beginning farmer or rancher 
     program, including a loan financed by the net proceeds of a 
     qualified small issue agricultural bond for land or property 
     described in section 144(a)(12)(B)(ii) of the Internal 
     Revenue Code of 1986.''.

     SEC. 507. DOWN PAYMENT LOAN PROGRAM.

       Section 310E of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1935) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by striking ``30 percent'' and 
     inserting ``40 percent''; and
       (B) in paragraph (3), by striking ``10 years'' and 
     inserting ``20 years''; and
       (2) in subsection (c)(3)(B), by striking ``10-year'' and 
     inserting ``20-year''.

     SEC. 508. BEGINNING FARMER AND RANCHER CONTRACT LAND SALES 
                   PROGRAM.

       Subtitle A of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1922 et seq.) is amended by adding at the end 
     the following:

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

       ``(a) In General.--Not later than October 1, 2002, the 
     Secretary shall carry out a pilot program in not fewer than 
     10 geographically dispersed States, as determined by the 
     Secretary, to guarantee up to 5 loans per State in each of 
     fiscal years 2003 through 2006 made by a private seller of a 
     farm or ranch to a qualified beginning farmer or rancher on a 
     contract land sale basis, if the loan meets applicable 
     underwriting criteria and a commercial lending institution 
     agrees to serve as escrow agent.
       ``(b) Date of Commencement of Program.--The Secretary shall 
     commence the pilot program on making a determination that 
     guarantees of contract land sales present a risk that is 
     comparable with the risk presented in the case of guarantees 
     to commercial lenders.''.

                      Subtitle B--Operating Loans

     SEC. 511. DIRECT LOANS.

       Section 311(c)(1)(A) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1941(c)(1)(A)) is amended by 
     striking ``who has not'' and all that follows through ``5 
     years''.

     SEC. 512. AMOUNT OF GUARANTEE OF LOANS FOR TRIBAL FARM 
                   OPERATIONS; WAIVER OF LIMITATIONS FOR TRIBAL 
                   OPERATIONS AND OTHER OPERATIONS.

       (a) Amount of Guarantee of Loans for Tribal Operations.--
     Section 309(h) of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1929(h)) is amended--
       (1) in paragraph (4), by striking ``paragraphs (5) and 
     (6)'' and inserting ``paragraphs (5), (6), and (7)''; and
       (2) by adding at the end the following:
       ``(7) Amount of guarantee of loans for tribal operations.--
     In the case of an operating loan made to a farmer or rancher 
     who is a member of an Indian tribe and whose farm or ranch is 
     within an Indian reservation (as defined in section 
     335(e)(1)(A)(ii)), the Secretary shall guarantee 95 percent 
     of the loan.''.
       (b) Waiver of Limitations.--Section 311(c) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1941(c)) is amended--
       (1) in paragraph (1), by striking ``paragraph (3)'' and 
     inserting ``paragraphs (3) and (4)''; and
       (2) by adding at the end the following:
       ``(4) Waivers.--
       ``(A) Tribal farm and ranch operations.--The Secretary 
     shall waive the limitation under paragraph (1)(C) or (3) for 
     a direct loan made under this subtitle to a farmer or rancher 
     who is a member of an Indian tribe and whose farm or ranch is 
     within an Indian reservation (as defined in section 
     335(e)(1)(A)(ii)) if the Secretary determines that commercial 
     credit is not generally available for such farm or ranch 
     operations.
       ``(B) Other farm and ranch operations.--On a case-by-case 
     determination not subject to administrative appeal, the 
     Secretary may grant a borrower a waiver, 1 time only for a 
     period of 2 years, of the limitation under paragraph (1)(C) 
     or (3) for a direct operating loan if the borrower 
     demonstrates to the satisfaction of the Secretary that--
       ``(i) the borrower has a viable farm or ranch operation;
       ``(ii) the borrower applied for commercial credit from at 
     least 2 commercial lenders;
       ``(iii) the borrower was unable to obtain a commercial loan 
     (including a loan guaranteed by the Secretary); and
       ``(iv) the borrower successfully has completed, or will 
     complete within 1 year, borrower training under section 359 
     (from which requirement the Secretary shall not grant a 
     waiver under section 359(f)).''.

                 Subtitle C--Administrative Provisions

     SEC. 521. ELIGIBILITY OF LIMITED LIABILITY COMPANIES FOR FARM 
                   OWNERSHIP LOANS, FARM OPERATING LOANS, AND 
                   EMERGENCY LOANS.

       (a) In General.--Sections 302(a), 311(a), and 321(a) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1922(a), 1941(a), 1961(a)) are amended by striking ``and 
     joint operations'' each place it appears and inserting 
     ``joint operations, and limited liability companies''.
       (b) Conforming Amendment.--Section 321(a) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1961(a)) is amended by striking ``or joint operations'' each 
     place it appears and inserting ``joint operations, or limited 
     liability companies''.

     SEC. 522. DEBT SETTLEMENT.

       Section 331(b)(4) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1981(b)(4)) is amended by striking 
     ``carried out--'' and all that follows through ``(B) after'' 
     and inserting ``carried out after''.

     SEC. 523. TEMPORARY AUTHORITY TO ENTER INTO CONTRACTS; 
                   PRIVATE COLLECTION AGENCIES.

       (a) In General.--Section 331 of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1981) is amended by striking 
     subsections (d) and (e).
       (b) Application.--The amendment made by subsection (a) 
     shall not apply to a contract entered into before the 
     effective date of this Act.

     SEC. 524. INTEREST RATE OPTIONS FOR LOANS IN SERVICING.

       Section 331B of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1981b) is amended--
       (1) by striking ``lower of (1) the'' and inserting the 
     following: ``lowest of--
       ``(1) the''; and
       (2) by striking ``original loan or (2) the'' and inserting 
     the following: ``original loan;
       ``(2) the rate being charged by the Secretary for loans, 
     other than guaranteed loans, of the same type at the time at 
     which the borrower applies for a deferral, consolidation, 
     rescheduling, or reamortization; or
       ``(3) the''.

     SEC. 525. ANNUAL REVIEW OF BORROWERS.

       Section 333 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1983) is amended by striking paragraph (2) and 
     inserting the following:

[[Page S12921]]

       ``(2) except with respect to a loan under section 306, 
     310B, or 314--
       ``(A) an annual review of the credit history and business 
     operation of the borrower; and
       ``(B) an annual review of the continued eligibility of the 
     borrower for the loan;''.

     SEC. 526. SIMPLIFIED LOAN APPLICATIONS.

       Section 333A(g)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1983a(g)(1)) is amended by striking 
     ``of loans the principal amount of which is $50,000 or less'' 
     and inserting ``of farmer program loans the principal amount 
     of which is $100,000 or less''.

     SEC. 527. INVENTORY PROPERTY.

       Section 335(c) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1985(c)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B)--
       (i) in clause (i), by striking ``75 days'' and inserting 
     ``135 days''; and
       (ii) by adding at the end the following:
       ``(iv) Combining and dividing of property.--To the maximum 
     extent practicable, the Secretary shall maximize the 
     opportunity for beginning farmers and ranchers to purchase 
     real property acquired by the Secretary under this title by 
     combining or dividing inventory parcels of the property in 
     such manner as the Secretary determines to be appropriate.''; 
     and
       (B) in subparagraph (C)--
       (i) by striking ``75 days'' and inserting ``135 days''; and
       (ii) by striking ``75-day period'' and inserting ``135-day 
     period'';
       (2) by striking paragraph (2) and inserting the following:
       ``(2) Previous lease.--In the case of real property 
     acquired before April 4, 1996, that the Secretary leased 
     before April 4, 1996, not later than 60 days after the lease 
     expires, the Secretary shall offer to sell the property in 
     accordance with paragraph (1).''; and
       (3) in paragraph (3)--
       (A) in subparagraph (A), by striking ``subparagraph (B)'' 
     and inserting ``subparagraphs (B) and (C)''; and
       (B) by adding at the end the following:
       ``(C) Offer to sell or grant for farmland preservation.--
     For the purpose of farmland preservation, the Secretary 
     shall--
       ``(i) in consultation with the State Conservationist of 
     each State in which inventory property is located, identify 
     each parcel of inventory property in the State that should be 
     preserved for agricultural use; and
       ``(ii) offer to sell or grant an easement, restriction, 
     development right, or similar legal right to each parcel 
     identified under clause (i) to a State, a political 
     subdivision of a State, or a private nonprofit organization 
     separately from the underlying fee or other rights to the 
     property owned by the United States.''.

     SEC. 528. DEFINITIONS.

       (a) Qualified Beginning Farmer or Rancher.--Section 
     343(a)(11)(F) of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1991(a)(11)(F)) is amended by striking ``25 
     percent'' and inserting ``30 percent''.
       (b) Debt Forgiveness.--Section 343(a)(12) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1991(a)(12)) is amended by striking subparagraph (B) and 
     inserting the following:
       ``(B) Exceptions.--The term `debt forgiveness' does not 
     include--
       ``(i) consolidation, rescheduling, reamortization, or 
     deferral of a loan; or
       ``(ii) any write-down provided as part of a resolution of a 
     discrimination complaint against the Secretary.''.

     SEC. 529. LOAN AUTHORIZATION LEVELS.

       Section 346 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1994) is amended--
       (1) in subsection (b)--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) In general.--The Secretary may make or guarantee 
     loans under subtitles A and B from the Agricultural Credit 
     Insurance Fund provided for in section 309 for not more than 
     $3,750,000,000 for each of fiscal years 2002 through 2006, of 
     which, for each fiscal year--
       ``(A) $750,000,000 shall be for direct loans, of which--
       ``(i) $200,000,000 shall be for farm ownership loans under 
     subtitle A; and
       ``(ii) $550,000,000 shall be for operating loans under 
     subtitle B; and
       ``(B) $3,000,000,000 shall be for guaranteed loans, of 
     which--
       ``(i) $1,000,000,000 shall be for guarantees of farm 
     ownership loans under subtitle A; and
       ``(ii) $2,000,000,000 shall be for guarantees of operating 
     loans under subtitle B.''; and
       (B) in paragraph (2)(A)(ii), by striking ``farmers and 
     ranchers'' and all that follows and inserting ``farmers and 
     ranchers 35 percent for each of fiscal years 2002 through 
     2006.''; and
       (2) in subsection (c), by striking the last sentence.

     SEC. 530. INTEREST RATE REDUCTION PROGRAM.

       Section 351 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1999) is amended--
       (1) in subsection (a)--
       (A) by striking ``Program.--'' and all that follows through 
     ``The Secretary'' and inserting ``Program.--The Secretary''; 
     and
       (B) by striking paragraph (2);
       (2) by striking subsection (c) and inserting the following:
       ``(c) Amount of Interest Rate Reduction.--
       ``(1) In general.--In return for a contract entered into by 
     a lender under subsection (b) for the reduction of the 
     interest rate paid on a loan, the Secretary shall make 
     payments to the lender in an amount equal to not more than 
     100 percent of the cost of reducing the annual rate of 
     interest payable on the loan, except that such payments shall 
     not exceed the cost of reducing the rate by more than--
       ``(A) in the case of a borrower other than a beginning 
     farmer or rancher, 3 percent; and
       ``(B) in the case of a beginning farmer or rancher, 4 
     percent.
       ``(2) Beginning farmers and ranchers.--The percentage 
     reduction of the interest rate for which payments are 
     authorized to be made for a beginning farmer or rancher under 
     paragraph (1) shall be 1 percent more than the percentage 
     reduction for farmers and ranchers that are not beginning 
     farmers or ranchers.''; and
       (3) in subsection (e), by striking paragraph (2) and 
     inserting the following:
       ``(2) Maximum amount of funds.--
       ``(A) In general.--The total amount of funds used by the 
     Secretary to carry out this section for a fiscal year shall 
     not exceed $750,000,000.
       ``(B) Beginning farmers and ranchers.--
       ``(i) In general.--The Secretary shall reserve not less 
     than 25 percent of the funds used by the Secretary under 
     subparagraph (A) to make payments for guaranteed loans made 
     to beginning farmers and ranchers.
       ``(ii) Duration of reservation of funds.--Funds reserved 
     for beginning farmers or ranchers under clause (i) for a 
     fiscal year shall be reserved only until April 1 of the 
     fiscal year.''.

     SEC. 531. OPTIONS FOR SATISFACTION OF OBLIGATION TO PAY 
                   RECAPTURE AMOUNT FOR SHARED APPRECIATION 
                   AGREEMENTS.

       (a) In General.--Section 353(e)(7) of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 2001(e)(7)) is amended--
       (1) in subparagraph (C), by redesignating clauses (i) and 
     (ii) as subclauses (I) and (II), respectively, and adjusting 
     the margins appropriately;
       (2) by redesignating subparagraphs (A) through (C) as 
     clauses (i) through (iii), respectively, and adjusting the 
     margins appropriately;
       (3) by striking the paragraph heading and inserting the 
     following:
       ``(7) Options for satisfaction of obligation to pay 
     recapture amount.--
       ``(A) In general.--As an alternative to repaying the full 
     recapture amount at the end of the term of the shared 
     appreciation agreement (as determined by the Secretary in 
     accordance with this subsection), a borrower may satisfy the 
     obligation to pay the amount of recapture by--
       ``(i) financing the recapture payment in accordance with 
     subparagraph (B); or
       ``(ii) granting the Secretary an agricultural use 
     protection and conservation easement on the property subject 
     to the shared appreciation agreement in accordance with 
     subparagraph (C).
       ``(B) Financing of recapture payment.--''; and
       (4) by adding at the end the following:
       ``(C) Agricultural use protection and conservation 
     easement.--
       ``(i) In general.--Subject to clause (iii), the Secretary 
     shall accept an agricultural use protection and conservation 
     easement from the borrower for all of the real security 
     property subject to the shared appreciation agreement in lieu 
     of payment of the recapture amount.
       ``(ii) Term.--The term of an easement accepted by the 
     Secretary under this subparagraph shall be 25 years.
       ``(iii) Conditions.--The easement shall require that the 
     property subject to the easement shall continue to be used or 
     conserved for agricultural and conservation uses in 
     accordance with sound farming and conservation practices, as 
     determined by the Secretary.
       ``(iv) Replacement of method of satisfying obligation.--A 
     borrower that has begun financing of a recapture payment 
     under subparagraph (B) may replace that financing with an 
     agricultural use protection and conservation easement under 
     this subparagraph.''.
       (b) Applicability.--The amendments made by subsection (a) 
     shall apply to a shared appreciation agreement entered into 
     under section 353(e) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2001(e)) that--
       (1) matures on or after the date of enactment of this Act; 
     or
       (2) matured before the date of enactment of this Act, if--
       (A) the recapture amount was reamortized under section 
     353(e)(7) of the Consolidated Farm and Rural Development Act 
     (7 U.S.C. 2001(e)(7)) (as in effect on the day before the 
     date of enactment of this Act); or
       (B)(i) the recapture amount had not been paid before the 
     date of enactment of this Act because of circumstances beyond 
     the control of the borrower; and
       (ii) the borrower acted in good faith (as determined by the 
     Secretary) in attempting to repay the recapture amount.

     SEC. 532. WAIVER OF BORROWER TRAINING CERTIFICATION 
                   REQUIREMENT.

       Section 359 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 2006a) is amended by striking subsection (f) 
     and inserting the following:
       ``(f) Waivers.--
       ``(1) In general.--The Secretary may waive the requirements 
     of this section for an

[[Page S12922]]

     individual borrower if the Secretary determines that the 
     borrower demonstrates adequate knowledge in areas described 
     in this section.
       ``(2) Criteria.--The Secretary shall establish criteria 
     providing for the application of paragraph (1) consistently 
     in all counties nationwide.''.

     SEC. 533. ANNUAL REVIEW OF BORROWERS.

       Section 360(d)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2006b(d)(1)) is amended by striking 
     ``biannual'' and inserting ``annual''.

                        Subtitle D--Farm Credit

     SEC. 541. REPEAL OF BURDENSOME APPROVAL REQUIREMENTS.

       (a) Banks for Cooperatives.--Section 3.1(11)(B) of the Farm 
     Credit Act of 1971 (12 U.S.C. 2122(11)(B)) is amended--
       (1) by striking clause (iii); and
       (2) by redesignating clause (iv) as clause (iii).
       (b) Other System Banks; Associations.--Section 4.18A of the 
     Farm Credit Act of 1971 (12 U.S.C. 2206a) is amended--
       (1) in subsection (a)(1), by striking ``3.1(11)(B)(iv)'' 
     and inserting ``3.1(11)(B)(iii)''; and
       (2) by striking subsection (c).

     SEC. 542. BANKS FOR COOPERATIVES.

       Section 3.7(b) of the Farm Credit Act of 1971 (12 U.S.C. 
     2128(b)) is amended--
       (1) in paragraphs (1) and (2)(A)(i), by striking ``farm 
     supplies'' each place it appears and inserting ``agricultural 
     supplies''; and
       (2) by adding at the end the following:
       ``(4) Definition of agricultural supply.--In this 
     subsection, the term `agricultural supply' includes--
       ``(A) a farm supply; and
       ``(B)(i) agriculture-related processing equipment;
       ``(ii) agriculture-related machinery; and
       ``(iii) other capital goods related to the storage or 
     handling of agricultural commodities or products.''.

     SEC. 543. INSURANCE CORPORATION PREMIUMS.

       (a) Reduction in Premiums for GSE-Guaranteed Loans.--
       (1) In general.--Section 5.55 of the Farm Credit Act of 
     1971 (12 U.S.C. 2277a-4) is amended--
       (A) in subsection (a)--
       (i) in paragraph (1)--

       (I) in subparagraph (A), by striking ``government-
     guaranteed loans provided for in subparagraph (C)'' and 
     inserting ``loans provided for in subparagraphs (C) and 
     (D)'';
       (II) in subparagraph (B), by striking ``and'' at the end;
       (III) in subparagraph (C), by striking the period at the 
     end and inserting ``; and''; and
       (IV) by adding at the end the following:

       ``(D) the annual average principal outstanding for such 
     year on the guaranteed portions of Government Sponsored 
     Enterprise-guaranteed loans made by the bank that are in 
     accrual status, multiplied by a factor, not to exceed 0.0015, 
     determined by the Corporation at the sole discretion of the 
     Corporation.''; and
       (ii) by adding at the end the following:
       ``(4) Definition of government sponsored enterprise-
     guaranteed loan.--In this section and sections 1.12(b) and 
     5.56(a), the term `Government Sponsored Enterprise-guaranteed 
     loan' means a loan or credit, or portion of a loan or credit, 
     that is guaranteed by an entity that is chartered by Congress 
     to serve a public purpose and the debt obligations of which 
     are not explicitly guaranteed by the United States, including 
     the Federal National Mortgage Association, the Federal Home 
     Loan Mortgage Corporation, the Federal Home Loan Bank System, 
     and the Federal Agricultural Mortgage Corporation, but not 
     including any other institution of the Farm Credit System.''; 
     and
       (B) in subsection (e)(4)(B), by striking ``government-
     guaranteed loans described in subsection (a)(1)(C)'' and 
     inserting ``loans described in subparagraph (C) or (D) of 
     subsection (a)(1)''.
       (2) Conforming amendments.--
       (A) Section 1.12(b) of the Farm Credit Act of 1971 (12 
     U.S.C. 2020(b)) is amended--
       (i) in paragraph (1), by inserting ``and Government 
     Sponsored Enterprise-guaranteed loans (as defined in section 
     5.55(a)(4)) provided for in paragraph (4)'' after 
     ``government-guaranteed loans (as defined in section 
     5.55(a)(3)) provided for in paragraph (3)'';
       (ii) in paragraph (2), by striking ``and'' at the end;
       (iii) in paragraph (3), by striking the period at the end 
     and inserting ``; and''; and
       (iv) by adding at the end the following:
       ``(4) the annual average principal outstanding for such 
     year on the guaranteed portions of Government Sponsored 
     Enterprise-guaranteed loans (as so defined) made by the 
     association, or by the other financing institution and funded 
     by or discounted with the Farm Credit Bank, that are in 
     accrual status, multiplied by a factor, not to exceed 0.0015, 
     determined by the Corporation for the purpose of setting the 
     premium for such guaranteed portions of loans under section 
     5.55(a)(1)(D).''.
       (B) Section 5.56(a) of the Farm Credit Act of 1971 (12 
     U.S.C. 2277a-5(a)) is amended--
       (i) in paragraph (1), by inserting ``and Government 
     Sponsored Enterprise-guaranteed loans (as defined in section 
     5.55(a)(4))'' after ``government-guaranteed loans'';
       (ii) by redesignating paragraphs (4) and (5) as paragraphs 
     (5) and (6), respectively; and
       (iii) by inserting after paragraph (3) the following:
       ``(4) the annual average principal outstanding on the 
     guaranteed portions of Government Sponsored Enterprise-
     guaranteed loans (as defined in section 5.55(a)(4)) that are 
     in accrual status;''.
       (b) Effective Date.--The amendments made by subsection (a) 
     take effect on the date on which Farm Credit System Insurance 
     Corporation premiums are due from insured Farm Credit System 
     banks under section 5.55 of the Farm Credit Act of 1971 (12 
     U.S.C. 2277a-4) for calendar year 2001.

     SEC. 544. BOARD OF DIRECTORS OF THE FEDERAL AGRICULTURAL 
                   MORTGAGE CORPORATION.

       Section 8.2(b) of the Farm Credit Act of 1971 (12 U.S.C. 
     2279aa-2(b)) is amended--
       (1) in paragraph (2)--
       (A) by striking ``15'' and inserting ``17'';
       (B) in subparagraph (A), by striking ``common stock'' and 
     all that follows and inserting ``Class A voting common 
     stock;'';
       (C) in subparagraph (B), by striking ``common stock'' and 
     all that follows and inserting ``Class B voting common 
     stock;'';
       (D) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (E) by inserting after subparagraph (B) the following:
       ``(C) 2 members shall be elected by holders of Class A 
     voting common stock and Class B voting common stock, 1 of 
     whom shall be the chief executive officer of the Corporation 
     and 1 of whom shall be another executive officer of the 
     Corporation; and'';
       (2) in paragraph (3), by striking ``(2)(C)'' and inserting 
     ``(2)(D)'';
       (3) in paragraph (4)--
       (A) in subparagraph (A), by striking ``(A) or (B)'' and 
     inserting ``(A), (B), or (C)''; and
       (B) in subparagraph (B), by striking ``(2)(C)'' and 
     inserting ``(2)(D)'';
       (4) in paragraph (5)(A)--
       (A) by inserting ``executive officers of the Corporation 
     or'' after ``from among persons who are''; and
       (B) by striking ``such a representative'' and inserting 
     ``such an executive officer or representative'';
       (5) in paragraph (6)(B), by striking ``(A) and (B)'' and 
     inserting ``(A), (B), and (C)'';
       (6) in paragraph (7), by striking ``8 members'' and 
     inserting ``Nine members'';
       (7) in paragraph (8)--
       (A) in the paragraph heading, by inserting ``or executive 
     officers of the corporation'' after ``employees''; and
       (B) by inserting ``or executive officers of the 
     Corporation'' after ``United States''; and
       (8) by striking paragraph (9) and inserting the following:
       ``(9) Chairperson.--
       ``(A) Election.--The permanent board shall annually elect a 
     chairperson from among the members of the permanent board.
       ``(B) Term.--The term of the chairperson shall coincide 
     with the term served by elected members of the permanent 
     board under paragraph (6)(B).''.

                     Subtitle E--General Provisions

     SEC. 551. INAPPLICABILITY OF FINALITY RULE.

       Section 281(a)(1) of the Department of Agriculture 
     Reorganization Act of 1994 (7 U.S.C. 7001(a)(1)) is amended--
       (1) by striking ``This subsection'' and inserting the 
     following:
       ``(A) In general.--Except as provided in subparagraph (B), 
     this subsection''; and
       (2) by adding at the end the following:
       ``(B) Agricultural credit decisions.--This subsection shall 
     not apply with respect to an agricultural credit decision 
     made by such a State, county, or area committee, or employee 
     of such a committee, under the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1921 et seq.).''.

     SEC. 552. TECHNICAL AMENDMENTS.

       (a) Section 321(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1961(a)) is amended by striking 
     ``Disaster Relief and Emergency Assistance Act'' each place 
     it appears and inserting ``Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5121 et seq.)''.
       (b) Section 336(b) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1986(b)) is amended in the second 
     sentence by striking ``provided for in section 332 of this 
     title''.
       (c) Section 359(c)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2006a(c)(1)) is amended by striking 
     ``established pursuant to section 332,''.
       (d) Section 360(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2006b(a)) is amended by striking 
     ``established pursuant to section 332''.

     SEC. 553. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b) and 
     section 543(b), this title and the amendments made by this 
     title take effect on October 1, 2001.
       (b) Board of Directors of the Federal Agricultural Mortgage 
     Corporation.--The amendments made by section 544 take effect 
     on the date of enactment of this Act.

                      TITLE VI--RURAL DEVELOPMENT

                Subtitle A--Empowerment of Rural America

     SEC. 601. NATIONAL RURAL COOPERATIVE AND BUSINESS EQUITY 
                   FUND.

       The Consolidated Farm and Rural Development Act (7 U.S.C. 
     1921 et seq.) is amended by adding at the end the following:

   ``Subtitle G--National Rural Cooperative and Business Equity Fund

     ``SEC. 383A. SHORT TITLE.

       ``This subtitle may be cited as the `National Rural 
     Cooperative and Business Equity Fund Act'.

[[Page S12923]]

     ``SEC. 383B. PURPOSE.

       ``The purpose of this subtitle is to revitalize rural 
     communities and enhance farm income through sustainable rural 
     business development by providing Federal funds and credit 
     enhancements to a private equity fund in order to encourage 
     investments by institutional and noninstitutional investors 
     for the benefit of rural America.

     ``SEC. 383C. DEFINITIONS.

       ``In this subtitle:
       ``(1) Authorized private investor.--The term `authorized 
     private investor' means an individual, legal entity, or 
     affiliate or subsidiary of an individual or legal entity 
     that--
       ``(A) is eligible to receive a loan guarantee under this 
     title;
       ``(B) is eligible to receive a loan guarantee under the 
     Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.);
       ``(C) is created under the National Consumer Cooperative 
     Bank Act (12 U.S.C. 3011 et seq.);
       ``(D) is an insured depository institution subject to 
     section 383E(b)(2);
       ``(E) is a Farm Credit System institution described in 
     section 1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 
     2002(a)); or
       ``(F) is determined by the Board to be an appropriate 
     investor in the Fund.
       ``(2) Board.--The term `Board' means the board of directors 
     of the Fund established under section 383G.
       ``(3) Fund.--The term `Fund' means the National Rural 
     Cooperative and Business Equity Fund established under 
     section 383D.
       ``(4) Group of similar authorized private investors.--The 
     term `group of similar investors' means any 1 of the 
     following:
       ``(A) Insured depository institutions with total assets of 
     more than $250,000,000.
       ``(B) Insured depository institutions with total assets 
     equal to or less than $250,000,000.
       ``(C) Farm Credit System institutions described in section 
     1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 2002(a)).
       ``(D) Cooperative financial institutions (other than Farm 
     Credit System institutions).
       ``(E) Private investors, other than those described in 
     subparagraphs (A) through (D), authorized by the Secretary.
       ``(F) Other nonprofit organizations, including credit 
     unions.
       ``(5) Insured depository institution.--The term `insured 
     depository institution' means any bank or savings association 
     the deposits of which are insured under the Federal Deposit 
     Insurance Act (12 U.S.C. 1811 et seq.).
       ``(6) Rural business.--The term `rural business' means a 
     rural cooperative, a value-added agricultural enterprise, or 
     any other business located or locating in a rural area.

     ``SEC. 383D. ESTABLISHMENT.

       ``(a) Authority.--
       ``(1) In general.--On certification by the Secretary that, 
     to the maximum extent practicable, the parties proposing to 
     establish a fund provide a broad representation of all of the 
     groups of similar authorized private investors described in 
     subparagraphs (A) through (F) of section 383C(4), the parties 
     may establish a non-Federal entity under State law to 
     purchase shares of, and manage a fund to be known as the 
     `National Rural Cooperative and Business Equity Fund', to 
     generate and provide equity capital to rural businesses.
       ``(2) Ownership.--
       ``(A) In general.--To the maximum extent practicable, 
     equity ownership of the Fund shall be distributed among 
     authorized private investors representing all of the groups 
     of similar authorized private investors described in 
     subparagraphs (A) through (F) of section 383C(4).
       ``(B) Exclusion of groups.--No group of authorized private 
     investors shall be excluded from equity ownership of the Fund 
     during any period during which the Fund is in existence if an 
     authorized private investor representative of the group is 
     able and willing to invest in the Fund.
       ``(b) Purposes.--The purposes of the Fund shall be--
       ``(1) to strengthen the economy of rural areas;
       ``(2) to further sustainable rural business development;
       ``(3) to encourage--
       ``(A) start-up rural businesses;
       ``(B) increased opportunities for small and minority-owned 
     rural businesses; and
       ``(C) the formation of new rural businesses;
       ``(4) to enhance rural employment opportunities;
       ``(5) to provide equity capital to rural businesses, many 
     of which have difficulty obtaining equity capital; and
       ``(6) to leverage non-Federal funds for rural businesses.
       ``(c) Articles of Incorporation and Bylaws.--The articles 
     of incorporation and bylaws of the Fund shall set forth 
     purposes of the Fund that are consistent with the purposes 
     described in subsection (b).

     ``SEC. 383E. INVESTMENT IN THE FUND.

       ``(a) In General.--Of the funds made available under 
     section 383H, the Secretary shall--
       ``(1) subject to subsection (b)(1), make available to the 
     Fund $150,000,000;
       ``(2) subject to subsection (c), guarantee 50 percent of 
     each investment made by an authorized private investor in the 
     Fund; and
       ``(3) subject to subsection (d), guarantee the repayment of 
     principal of, and accrued interest on, debentures issued by 
     the Fund to authorized private investors.
       ``(b) Private Investment.--
       ``(1) Matching requirement.--Under subsection (a)(1), the 
     Secretary shall make an amount available to the Fund only 
     after an equal amount has been invested in the Fund by 
     authorized private investors in accordance with this subtitle 
     and the terms and conditions set forth in the bylaws of the 
     Fund.
       ``(2) Insured depository institutions.--
       ``(A) In general.--Subject to subparagraphs (B) and (C)--
       ``(i) an insured depository institution may be an 
     authorized private investor in the Fund; and
       ``(ii) an investment in the Fund may be considered to be 
     part of the record of an institution in meeting the credit 
     needs of the community in which the institution is located 
     under any applicable Federal law.
       ``(B) Investment limit.--The total investment in the Fund 
     of an insured depository institution shall not exceed 5 
     percent of the capital and surplus of the institution.
       ``(C) Regulatory authority.--An appropriate Federal banking 
     agency may, by regulation or order, impose on any insured 
     depository institution investing in the Fund, any safeguard, 
     limitation, or condition (including an investment limit that 
     is lower than the investment limit under subparagraph (B)) 
     that the Federal banking agency considers to be appropriate 
     to ensure that the institution operates--
       ``(i) in a financially sound manner; and
       ``(ii) in compliance with all applicable law.
       ``(c) Guarantee of Private Investments.--
       ``(1) In general.--The Secretary shall guarantee, under 
     terms and conditions determined by the Secretary, 50 percent 
     of any loss of the principal of an investment made in the 
     Fund by an authorized private investor.
       ``(2) Maximum total guarantee.--The aggregate potential 
     liability of the Secretary with respect to all guarantees 
     under paragraph (1) shall not apply to more than $300,000,000 
     in private investments in the Fund.
       ``(3) Redemption of guarantee.--
       ``(A) Date.--An authorized private investor in the Fund may 
     redeem a guarantee under paragraph (1), with respect to the 
     total investments in the Fund and the total losses of the 
     authorized private investor as of the date of redemption--
       ``(i) on the date that is 5 years after the date of the 
     initial investment by the authorized private investor; or
       ``(ii) annually thereafter.
       ``(B) Effect of redemption.--On redemption of a guarantee 
     under subparagraph (A)--
       ``(i) the shares in the Fund of the authorized private 
     investor shall be redeemed; and
       ``(ii) the authorized private investor shall be prohibited 
     from making any future investment in the Fund.
       ``(d) Debt Securities.--
       ``(1) In general.--The Fund may, at the discretion of the 
     Board, generate additional capital through--
       ``(A) the issuance of debt securities; and
       ``(B) other means determined to be appropriate by the 
     Board.
       ``(2) Guarantee of debt by secretary.--
       ``(A) In general.--The Secretary shall guarantee 100 
     percent of the principal of, and accrued interest on, 
     debentures issued by the Fund that are approved by the 
     Secretary.
       ``(B) Maximum debt guaranteed by secretary.--The 
     outstanding value of debentures issued by the Fund and 
     guaranteed by the Secretary shall not exceed the lesser of--
       ``(i) the amount equal to twice the value of the assets 
     held by the Fund; or
       ``(ii) $500,000,000.
       ``(C) Recapture of guarantee payments.--If the Secretary 
     makes a payment on a debt security issued by the Fund as a 
     result of a guarantee of the Secretary under this paragraph, 
     the Secretary shall have priority over other creditors for 
     repayment of the debt security.
       ``(3) Authorized private investors.--An authorized private 
     investor may purchase debt securities issued by the Fund.

     ``SEC. 383F. INVESTMENTS AND OTHER ACTIVITIES OF THE FUND.

       ``(a) Investments.--
       ``(1) In general.--
       ``(A) Types.--Subject to subparagraphs (B) and (C), the 
     Fund may--
       ``(i) make equity investments in a rural business that 
     meets--

       ``(I) the requirements of paragraph (6); and
       ``(II) such other requirements as the Board may establish; 
     and

       ``(ii) extend credit to the rural business in--

       ``(I) the form of mezzanine debt or subordinated debt; or
       ``(II) any other form of quasi-equity.

       ``(B) Limitations on investments.--
       ``(i) Total investments by a single rural business.--
     Subject to clause (ii), investment by the Fund in a single 
     rural business shall not exceed the greater of--

       ``(I) an amount equal to 7 percent of the capital of the 
     Fund; or
       ``(II) $2,000,000.

       ``(ii) Waiver.--The Secretary may waive the limitation in 
     clause (i) in any case in which an investment exceeding the 
     limits specified in clause (i) is necessary to preserve prior 
     investments in the rural business.
       ``(iii) Total nonequity investments.--Except in the case of 
     a project to assist a rural cooperative, the total amount of 
     nonequity investments described in subparagraph (A)(ii) that 
     may be provided by the Fund shall not exceed 20 percent of 
     the total investments of the Fund in the project.

[[Page S12924]]

       ``(C) Limitation.--Notwithstanding subparagraph (B), the 
     amount of any investment by the Fund in a rural business 
     shall not exceed the aggregate amount invested in like 
     securities by other private entities in that rural business.
       ``(2) Procedures.--The Fund shall implement procedures to 
     ensure that--
       ``(A) the financing arrangements of the Fund meet the 
     Fund's primary focus of providing equity capital; and
       ``(B) the Fund does not compete with conventional sources 
     of credit.
       ``(3) Diversity of projects.--The Fund--
       ``(A) shall seek to make equity investments in a variety of 
     viable projects, with a significant share of investments--
       ``(i) in smaller enterprises (as defined in section 384A) 
     in rural communities of diverse sizes; and
       ``(ii) in cooperative and noncooperative enterprises; and
       ``(B) shall be managed in a manner that diversifies the 
     risks to the Fund among a variety of projects.
       ``(4) Limitation on rural businesses assisted.--The Fund 
     shall not invest in any rural business that is primarily 
     retail in nature (as determined by the Board), other than a 
     purchasing cooperative.
       ``(5) Interest rate limitations.--Returns on investments in 
     and by the Fund and returns on the extension of credit by 
     participants in projects assisted by the Fund, shall not be 
     subject to any State or Federal law establishing a maximum 
     allowable interest rate.
       ``(6) Requirements for recipients.--
       ``(A) Other investments.--Any recipient of amounts from the 
     Fund shall make or obtain a significant investment from a 
     source of capital other than the Fund.
       ``(B) Sponsorship.--To be considered for an equity 
     investment from the Fund, a rural business investment project 
     shall be sponsored by a regional, State, or local sponsoring 
     or endorsing organization such as--
       ``(i) a financial institution;
       ``(ii) a development organization; or
       ``(iii) any other established entity engaging or assisting 
     in rural business development, including a rural cooperative.
       ``(b) Technical Assistance.--The Fund, under terms and 
     conditions established by the Board, shall use not less than 
     2 percent of capital provided by the Federal Government to 
     provide technical assistance to rural businesses seeking an 
     equity investment from the Fund.
       ``(c) Annual Audit.--
       ``(1) In general.--The Board shall authorize an annual 
     audit of the financial statements of the Fund by a nationally 
     recognized auditing firm using generally accepted accounting 
     principles.
       ``(2) Availability of audit results.--The results of the 
     audit required by paragraph (1) shall be made available to 
     investors in the Fund.
       ``(d) Annual Report.--The Board shall prepare and make 
     available to the public an annual report that--
       ``(1) describes the projects funded with amounts from the 
     Fund;
       ``(2) specifies the recipients of amounts from the Fund;
       ``(3) specifies the coinvestors in all projects that 
     receive amounts from the Fund; and
       ``(4) meets the reporting requirements, if any, of the 
     State under the law of which the Fund is established.
       ``(e) Other Authorities.--
       ``(1) In general.--The Board may exercise such other 
     authorities as are necessary to carry out this subtitle.
       ``(2) Oversight.--The Secretary shall enter in to a 
     contract with the Administrator of the Small Business 
     Administration under which the Administrator of the Small 
     Business Administration shall be responsible for the routine 
     duties of the Secretary in regard to the Fund.

     ``SEC. 383G. GOVERNANCE OF THE FUND.

       ``(a) In General.--The Fund shall be governed by a board of 
     directors that represents all of the authorized private 
     investors in the Fund and the Federal Government and that 
     consists of--
       ``(1) a designee of the Secretary;
       ``(2) 2 members who are appointed by the Secretary and are 
     not Federal employees, including--
       ``(A) 1 member with expertise in venture capital 
     investment; and
       ``(B) 1 member with expertise in cooperative development;
       ``(3) 8 members who are elected by the authorized private 
     investors with investments in the Fund; and
       ``(4) 1 member who is appointed by the Board and who is a 
     community banker from an insured depository institution that 
     has--
       ``(A) total assets equal to or less than $250,000,000; and
       ``(B) an investment in the Fund.
       ``(b) Limitation on Voting Control.--No individual investor 
     or group of authorized investors may control more than 25 
     percent of the votes on the Board.

     ``SEC. 383H. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated such sums as are 
     necessary to carry out this subtitle.''.

     SEC. 602. RURAL BUSINESS INVESTMENT PROGRAM.

       The Consolidated Farm and Rural Development Act (as amended 
     by section 601) is amended by adding at the end the 
     following:

            ``Subtitle H--Rural Business Investment Program

     ``SEC. 384A. DEFINITIONS.

       ``In this subtitle:
       ``(1) Articles.--The term `articles' means articles of 
     incorporation for an incorporated body or the functional 
     equivalent or other similar documents specified by the 
     Secretary for other business entities.
       ``(2) Developmental venture capital.--The term 
     `developmental venture capital' means capital in the form of 
     equity capital investments in Rural Business Investment 
     Companies with an objective of fostering economic development 
     in rural areas.
       ``(3) Employee welfare benefit plan; pension plan.--
       ``(A) In general.--The terms `employee welfare benefit 
     plan' and `pension plan' have the meanings given the terms in 
     section 3 of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1002).
       ``(B) Inclusions.--The terms `employee welfare benefit 
     plan' and `pension plan' include--
       ``(i) public and private pension or retirement plans 
     subject to this subtitle; and
       ``(ii) similar plans not covered by this subtitle that have 
     been established and that are maintained by the Federal 
     Government or any State (including by a political 
     subdivision, agency, or instrumentality of the Federal 
     Government or a State) for the benefit of employees.
       ``(4) Equity capital.--The term `equity capital' means 
     common or preferred stock or a similar instrument, including 
     subordinated debt with equity features.
       ``(5) Leverage.--The term `leverage' includes--
       ``(A) debentures purchased or guaranteed by the Secretary;
       ``(B) participating securities purchased or guaranteed by 
     the Secretary; and
       ``(C) preferred securities outstanding as of the date of 
     enactment of this subtitle.
       ``(6) License.--The term `license' means a license issued 
     by the Secretary as provided in section 384D(c).
       ``(7) Limited liability company.--The term `limited 
     liability company' means a business entity that is organized 
     and operating in accordance with a State limited liability 
     company law approved by the Secretary.
       ``(8) Member.--The term `member' means, with respect to a 
     Rural Business Investment Company that is a limited liability 
     company, a holder of an ownership interest or a person 
     otherwise admitted to membership in the limited liability 
     company.
       ``(9) Operational assistance.--The term `operational 
     assistance' means management, marketing, and other technical 
     assistance that assists a rural business concern with 
     business development.
       ``(10) Participation agreement.--The term `participation 
     agreement' means an agreement, between the Secretary and a 
     Rural Business Investment Company granted final approval 
     under section 384D(d), that requires the Rural Business 
     Investment Company to make investments in smaller enterprises 
     in rural areas.
       ``(11) Private capital.--
       ``(A) In general.--The term `private capital' means the 
     total of--
       ``(i) the paid-in capital and paid-in surplus of a 
     corporate Rural Business Investment Company, the contributed 
     capital of the partners of a partnership Rural Business 
     Investment Company, or the equity investment of the members 
     of a limited liability company Rural Business Investment 
     Company; and
       ``(ii) unfunded binding commitments, from investors that 
     meet criteria established by the Secretary to contribute 
     capital to the Rural Business Investment Company, except that 
     unfunded commitments may be counted as private capital for 
     purposes of approval by the Secretary of any request for 
     leverage, but leverage shall not be funded based on the 
     commitments.
       ``(B) Exclusions.--The term `private capital' does not 
     include--
       ``(i) any funds borrowed by a Rural Business Investment 
     Company from any source;
       ``(ii) any funds obtained through the issuance of leverage; 
     or
       ``(iii) any funds obtained directly or indirectly from the 
     Federal Government or any State (including by a political 
     subdivision, agency, or instrumentality of the Federal 
     Government or a State), except for--

       ``(I) 50 percent of funds from the National Rural 
     Cooperative and Business Equity Fund;
       ``(II) funds obtained from the business revenues (excluding 
     any governmental appropriation) of any federally chartered or 
     government-sponsored enterprise established prior to the date 
     of enactment of this subtitle;
       ``(III) funds invested by an employee welfare benefit plan 
     or pension plan; and
       ``(IV) any qualified nonprivate funds (if the investors of 
     the qualified nonprivate funds do not control, directly or 
     indirectly, the management, board of directors, general 
     partners, or members of the Rural Business Investment 
     Company).

       ``(12) Qualified nonprivate funds.--The term `qualified 
     nonprivate funds' means any--
       ``(A) funds directly or indirectly invested in any 
     applicant or Rural Business Investment Company on or before 
     the date of enactment of this subtitle, by any Federal 
     agency, other than the Department of Agriculture, under a 
     provision of law explicitly mandating the inclusion of those 
     funds in the definition of the term `private capital'; and

[[Page S12925]]

       ``(B) funds invested in any applicant or Rural Business 
     Investment Company by 1 or more entities of any State 
     (including by a political subdivision, agency, or 
     instrumentality of the State and including any guarantee 
     extended by those entities) in an aggregate amount that does 
     not exceed 33 percent of the private capital of the applicant 
     or Rural Business Investment Company.
       ``(13) Rural business concern.--The term `rural business 
     concern' means--
       ``(A) a public, private, or cooperative for-profit or 
     nonprofit organization;
       ``(B) a for-profit or nonprofit business controlled by an 
     Indian tribe on a Federal or State reservation or other 
     federally recognized Indian tribal group; or
       ``(C) any other person or entity;
     that primarily operates in a rural area, as determined by the 
     Secretary.
       ``(14) Rural business investment company.--The term `Rural 
     Business Investment Company' means a company that--
       ``(A) has been granted final approval by the Secretary 
     under section 384D(d); and
       ``(B) has entered into a participation agreement with the 
     Secretary.
       ``(15) Smaller enterprise.--The term `smaller enterprise' 
     means any rural business concern that, together with its 
     affiliates--
       ``(A) has--
       ``(i) a net financial worth of not more than $6,000,000, as 
     of the date on which assistance is provided under this 
     subtitle to the rural business concern; and
       ``(ii) an average net income for the 2-year period 
     preceding the date on which assistance is provided under this 
     subtitle to the rural business concern, of not more than 
     $2,000,000, after Federal income taxes (excluding any 
     carryover losses) except that, for purposes of this clause, 
     if the rural business concern is not required by law to pay 
     Federal income taxes at the enterprise level, but is required 
     to pass income through to the shareholders, partners, 
     beneficiaries, or other equitable owners of the business 
     concern, the net income of the business concern shall be 
     determined by allowing a deduction in an amount equal to the 
     total of--

       ``(I) if the rural business concern is not required by law 
     to pay State (and local, if any) income taxes at the 
     enterprise level, the net income (determined without regard 
     to this clause), multiplied by the marginal State income tax 
     rate (or by the combined State and local income tax rates, as 
     applicable) that would have applied if the business concern 
     were a corporation; and
       ``(II) the net income (so determined) less any deduction 
     for State (and local) income taxes calculated under subclause 
     (I), multiplied by the marginal Federal income tax rate that 
     would have applied if the rural business concern were a 
     corporation; or

       ``(B) satisfies the standard industrial classification size 
     standards established by the Administrator of the Small 
     Business Administration for the industry in which the rural 
     business concern is primarily engaged.

     ``SEC. 384B. PURPOSES.

       ``The purposes of the Rural Business Investment Program 
     established under this subtitle are--
       ``(1) to promote economic development and the creation of 
     wealth and job opportunities in rural areas and among 
     individuals living in those areas by encouraging 
     developmental venture capital investments in smaller 
     enterprises primarily located in rural areas; and
       ``(2) to establish a developmental venture capital program, 
     with the mission of addressing the unmet equity investment 
     needs of small enterprises located in rural areas, by 
     authorizing the Secretary--
       ``(A) to enter into participation agreements with Rural 
     Business Investment Companies;
       ``(B) to guarantee debentures of Rural Business Investment 
     Companies to enable each Rural Business Investment Company to 
     make developmental venture capital investments in smaller 
     enterprises in rural areas; and
       ``(C) to make grants to Rural Business Investment 
     Companies, and to other entities, for the purpose of 
     providing operational assistance to smaller enterprises 
     financed, or expected to be financed, by Rural Business 
     Investment Companies.

     ``SEC. 384C. ESTABLISHMENT.

       ``In accordance with this subtitle, the Secretary shall 
     establish a Rural Business Investment Program, under which 
     the Secretary may--
       ``(1) enter into participation agreements with companies 
     granted final approval under section 384D(d) for the purposes 
     set forth in section 384B;
       ``(2) guarantee the debentures issued by Rural Business 
     Investment Companies as provided in section 384E; and
       ``(3) make grants to Rural Business Investment Companies, 
     and to other entities, under section 384H.

     ``SEC. 384D. SELECTION OF RURAL BUSINESS INVESTMENT 
                   COMPANIES.

       ``(a) Eligibility.--A company shall be eligible to apply to 
     participate, as a Rural Business Investment Company, in the 
     program established under this subtitle if--
       ``(1) the company is a newly formed for-profit entity or a 
     newly formed for-profit subsidiary of such an entity;
       ``(2) the company has a management team with experience in 
     community development financing or relevant venture capital 
     financing; and
       ``(3) the company will invest in enterprises that will 
     create wealth and job opportunities in rural areas, with an 
     emphasis on smaller businesses.
       ``(b) Application.--To participate, as a Rural Business 
     Investment Company, in the program established under this 
     subtitle, a company meeting the eligibility requirements of 
     subsection (a) shall submit an application to the Secretary 
     that includes--
       ``(1) a business plan describing how the company intends to 
     make successful developmental venture capital investments in 
     identified rural areas;
       ``(2) information regarding the community development 
     finance or relevant venture capital qualifications and 
     general reputation of the management of the company;
       ``(3) a description of how the company intends to work with 
     community organizations and to seek to address the unmet 
     capital needs of the communities served;
       ``(4) a proposal describing how the company intends to use 
     the grant funds provided under this subtitle to provide 
     operational assistance to smaller enterprises financed by the 
     company, including information regarding whether the company 
     intends to use licensed professionals, when necessary, on the 
     staff of the company or from an outside entity;
       ``(5) with respect to binding commitments to be made to the 
     company under this subtitle, an estimate of the ratio of cash 
     to in-kind contributions;
       ``(6) a description of the criteria to be used to evaluate 
     whether and to what extent the company meets the purposes of 
     the program established under this subtitle;
       ``(7) information regarding the management and financial 
     strength of any parent firm, affiliated firm, or any other 
     firm essential to the success of the business plan of the 
     company; and
       ``(8) such other information as the Secretary may require.
       ``(c) Issuance of License.--
       ``(1) Submission of application.--Each applicant for a 
     license to operate as a Rural Business Investment Company 
     under this subtitle shall submit to the Secretary an 
     application, in a form and including such documentation as 
     may be prescribed by the Secretary.
       ``(2) Procedures.--
       ``(A) Status.--Not later than 90 days after the initial 
     receipt by the Secretary of an application under this 
     subsection, the Secretary shall provide the applicant with a 
     written report describing the status of the application and 
     any requirements remaining for completion of the application.
       ``(B) Approval or disapproval.--Within a reasonable time 
     after receiving a completed application submitted in 
     accordance with this subsection and in accordance with such 
     requirements as the Secretary may prescribe by regulation, 
     the Secretary shall--
       ``(i) approve the application and issue a license for the 
     operation to the applicant, if the requirements of this 
     section are satisfied; or
       ``(ii) disapprove the application and notify the applicant 
     in writing of the disapproval.
       ``(3) Matters considered.--In reviewing and processing any 
     application under this subsection, the Secretary--
       ``(A) shall determine whether--
       ``(i) the applicant meets the requirements of subsection 
     (d); and
       ``(ii) the management of the applicant is qualified and has 
     the knowledge, experience, and capability necessary to comply 
     with this subtitle;
       ``(B) shall take into consideration--
       ``(i) the need for and availability of financing for rural 
     business concerns in the geographic area in which the 
     applicant is to commence business;
       ``(ii) the general business reputation of the owners and 
     management of the applicant; and
       ``(iii) the probability of successful operations of the 
     applicant, including adequate profitability and financial 
     soundness; and
       ``(C) shall not take into consideration any projected 
     shortage or unavailability of grant funds or leverage.
       ``(d) Approval; Designation.--The Secretary may approve an 
     applicant to operate as a Rural Business Investment Company 
     under this subtitle and designate the applicant as a Rural 
     Business Investment Company, if--
       ``(1) the Secretary determines that the application 
     satisfies the requirements of subsection (b);
       ``(2) the area in which the Rural Business Investment 
     Company is to conduct its operations, and establishment of 
     branch offices or agencies (if authorized by the articles), 
     are approved by the Secretary; and
       ``(3) the applicant enters into a participation agreement 
     with the Secretary.

     ``SEC. 384E. DEBENTURES.

       ``(a) In General.--The Secretary may guarantee the timely 
     payment of principal and interest, as scheduled, on 
     debentures issued by any Rural Business Investment Company.
       ``(b) Terms and Conditions.--The Secretary may make 
     guarantees under this section on such terms and conditions as 
     the Secretary considers appropriate, except that the term of 
     any debenture guaranteed under this section shall not exceed 
     15 years.
       ``(c) Full Faith and Credit of the United States.--Section 
     381H(i) shall apply to any guarantee under this section.
       ``(d) Maximum Guarantee.--Under this section, the Secretary 
     may--

[[Page S12926]]

       ``(1) guarantee the debentures issued by a Rural Business 
     Investment Company only to the extent that the total face 
     amount of outstanding guaranteed debentures of the Rural 
     Business Investment Company does not exceed 300 percent of 
     the private capital of the Rural Business Investment Company, 
     as determined by the Secretary; and
       ``(2) provide for the use of discounted debentures.

     ``SEC. 384F. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.

       ``(a) Issuance.--The Secretary may issue trust certificates 
     representing ownership of all or a fractional part of 
     debentures issued by a Rural Business Investment Company and 
     guaranteed by the Secretary under this subtitle, if the 
     certificates are based on and backed by a trust or pool 
     approved by the Secretary and composed solely of guaranteed 
     debentures.
       ``(b) Guarantee.--
       ``(1) In general.--The Secretary may, under such terms and 
     conditions as the Secretary considers appropriate, guarantee 
     the timely payment of the principal of and interest on trust 
     certificates issued by the Secretary or agents of the 
     Secretary for purposes of this section.
       ``(2) Limitation.--Each guarantee under this subsection 
     shall be limited to the extent of principal and interest on 
     the guaranteed debentures that compose the trust or pool.
       ``(3) Prepayment or default.--
       ``(A) In general.--In the event a debenture in a trust or 
     pool is prepaid, or in the event of default of such a 
     debenture, the guarantee of timely payment of principal and 
     interest on the trust certificates shall be reduced in 
     proportion to the amount of principal and interest the 
     prepaid debenture represents in the trust or pool.
       ``(B) Interest.--Interest on prepaid or defaulted 
     debentures shall accrue and be guaranteed by the Secretary 
     only through the date of payment of the guarantee.
       ``(C) Redemption.--At any time during its term, a trust 
     certificate may be called for redemption due to prepayment or 
     default of all debentures.
       ``(c) Full Faith and Credit of the United States.--Section 
     381H(i) shall apply to any guarantee of a trust certificate 
     issued by the Secretary under this section.
       ``(d) Subrogation and Ownership Rights.--
       ``(1) Subrogation.--If the Secretary pays a claim under a 
     guarantee issued under this section, the claim shall be 
     subrogated fully to the rights satisfied by the payment.
       ``(2) Ownership rights.--No Federal, State, or local law 
     shall preclude or limit the exercise by the Secretary of the 
     ownership rights of the Secretary in a debenture residing in 
     a trust or pool against which 1 or more trust certificates 
     are issued under this section.
       ``(e) Management and Administration.--
       ``(1) Registration.--The Secretary shall provide for a 
     central registration of all trust certificates issued under 
     this section.
       ``(2) Creation of pools.--The Secretary may--
       ``(A) maintain such commercial bank accounts or investments 
     in obligations of the United States as may be necessary to 
     facilitate the creation of trusts or pools backed by 
     debentures guaranteed under this subtitle; and
       ``(B) issue trust certificates to facilitate the creation 
     of those trusts or pools.
       ``(3) Fidelity bond or insurance requirement.--Any agent 
     performing functions on behalf of the Secretary under this 
     paragraph shall provide a fidelity bond or insurance in such 
     amount as the Secretary considers to be necessary to fully 
     protect the interests of the United States.
       ``(4) Regulation of brokers and dealers.--The Secretary may 
     regulate brokers and dealers in trust certificates issued 
     under this section.
       ``(5) Electronic registration.--Nothing in this subsection 
     prohibits the use of a book-entry or other electronic form of 
     registration for trust certificates issued under this 
     section.

     ``SEC. 384G. FEES.

       ``(a) In General.--The Secretary may charge such fees as 
     the Secretary considers appropriate with respect to any 
     guarantee or grant issued under this subtitle.
       ``(b) Trust Certificate.--Notwithstanding subsection (a), 
     the Secretary shall not collect a fee for any guarantee of a 
     trust certificate under section 384F, except that any agent 
     of the Secretary may collect a fee approved by the Secretary 
     for the functions described in section 384F(e)(2).
       ``(c) License.--
       ``(1) In general.--The Secretary may prescribe fees to be 
     paid by each applicant for a license to operate as a Rural 
     Business Investment Company under this subtitle.
       ``(2) Use of amounts.--Fees collected under this 
     subsection--
       ``(A) shall be deposited in the account for salaries and 
     expenses of the Secretary; and
       ``(B) are authorized to be appropriated solely to cover the 
     costs of licensing examinations.

     ``SEC. 384H. OPERATIONAL ASSISTANCE GRANTS.

       ``(a) In General.--
       ``(1) Authority.--In accordance with this section, the 
     Secretary may make grants to Rural Business Investment 
     Companies and to other entities, as authorized by this 
     subtitle, to provide operational assistance to smaller 
     enterprises financed, or expected to be financed, by the 
     entities.
       ``(2) Terms.--Grants made under this subsection shall be 
     made over a multiyear period (not to exceed 10 years) under 
     such other terms as the Secretary may require.
       ``(3) Use of funds.--The proceeds of a grant made under 
     this paragraph may be used by the Rural Business Investment 
     Company receiving the grant only to--
       ``(A) provide operational assistance in connection with an 
     equity investment (made with capital raised after the 
     effective date of this subtitle) in a business located in a 
     rural area; or
       ``(B) pay operational expenses of the Rural Business 
     Investment Company.
       ``(4) Submission of plans.--A Rural Business Investment 
     Company shall be eligible for a grant under this section only 
     if the Rural Business Investment Company submits to the 
     Secretary, in such form and manner as the Secretary may 
     require, a plan for use of the grant.
       ``(5) Grant amount.--
       ``(A) Rural business investment companies.--The amount of a 
     grant made under this subsection to a Rural Business 
     Investment Company shall be equal to the lesser of--
       ``(i) 50 percent of the amount of resources (in cash or in 
     kind) raised by the Rural Business Investment Company; or
       ``(ii) $1,000,000.
       ``(B) Other entities.--The amount of a grant made under 
     this subsection to any entity other than a Rural Business 
     Investment Company shall be equal to the resources (in cash 
     or in kind) raised by the entity in accordance with the 
     requirements applicable to Rural Business Investment 
     Companies under this subtitle.
       ``(b) Supplemental Grants.--
       ``(1) In general.--The Secretary may make supplemental 
     grants to Rural Business Investment Companies and to other 
     entities, as authorized by this subtitle under such terms as 
     the Secretary may require, to provide additional operational 
     assistance to smaller enterprises financed, or expected to be 
     financed, by the Rural Business Investment Companies and 
     other entities.
       ``(2) Matching requirement.--The Secretary may require, as 
     a condition of any supplemental grant made under this 
     subsection, that the Rural Business Investment Company or 
     entity receiving the grant provide from resources (in cash or 
     in kind), other than resources provided by the Secretary, a 
     matching contribution equal to the amount of the supplemental 
     grant.

     ``SEC. 384I. RURAL BUSINESS INVESTMENT COMPANIES.

       ``(a) Organization.--For the purpose of this subtitle, a 
     Rural Business Investment Company shall--
       ``(1) be an incorporated body, a limited liability company, 
     or a limited partnership organized and chartered or otherwise 
     existing under State law solely for the purpose of performing 
     the functions and conducting the activities authorized by 
     this subtitle;
       ``(2)(A) if incorporated, have succession for a period of 
     not less than 30 years unless earlier dissolved by the 
     shareholders of the Rural Business Investment Company; and
       ``(B) if a limited partnership or a limited liability 
     company, have succession for a period of not less than 10 
     years; and
       ``(3) possess the powers reasonably necessary to perform 
     the functions and conduct the activities.
       ``(b) Articles.--The articles of any Rural Business 
     Investment Company--
       ``(1) shall specify in general terms--
       ``(A) the purposes for which the Rural Business Investment 
     Company is formed;
       ``(B) the name of the Rural Business Investment Company;
       ``(C) the area or areas in which the operations of the 
     Rural Business Investment Company are to be carried out;
       ``(D) the place where the principal office of the Rural 
     Business Investment Company is to be located; and
       ``(E) the amount and classes of the shares of capital stock 
     of the Rural Business Investment Company;
       ``(2) may contain any other provisions consistent with this 
     subtitle that the Rural Business Investment Company may 
     determine appropriate to adopt for the regulation of the 
     business of the Rural Business Investment Company and the 
     conduct of the affairs of the Rural Business Investment 
     Company; and
       ``(3) shall be subject to the approval of the Secretary.
       ``(c) Capital Requirements.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     private capital of each Rural Business Investment Company 
     shall be not less than--
       ``(A) $5,000,000; or
       ``(B) $10,000,000, with respect to each Rural Business 
     Investment Company authorized or seeking authority to issue 
     participating securities to be purchased or guaranteed by the 
     Secretary under this subtitle.
       ``(2) Exception.--The Secretary may, in the discretion of 
     the Secretary and based on a showing of special circumstances 
     and good cause, permit the private capital of a Rural 
     Business Investment Company described in paragraph (1)(B) to 
     be less than $10,000,000, but not less than $5,000,000, if 
     the Secretary determines that the action would not create or 
     otherwise contribute to an unreasonable risk of default or 
     loss to the Federal Government.
       ``(3) Adequacy.--In addition to the requirements of 
     paragraph (1), the Secretary shall--
       ``(A) determine whether the private capital of each Rural 
     Business Investment Company is adequate to ensure a 
     reasonable prospect

[[Page S12927]]

     that the Rural Business Investment Company will be operated 
     soundly and profitably, and managed actively and prudently in 
     accordance with the articles of the Rural Business Investment 
     Company;
       ``(B) determine that the Rural Business Investment Company 
     will be able to comply with the requirements of this 
     subtitle; and
       ``(C) require that at least 75 percent of the capital of 
     each Rural Business Investment Company is invested in rural 
     business concerns.
         ``(d) Diversification of Ownership.--The Secretary shall 
     ensure that the management of each Rural Business Investment 
     Company licensed after the date of enactment of this subtitle 
     is sufficiently diversified from and unaffiliated with the 
     ownership of the Rural Business Investment Company so as to 
     ensure independence and objectivity in the financial 
     management and oversight of the investments and operations of 
     the Rural Business Investment Company.

     ``SEC. 384J. FINANCIAL INSTITUTION INVESTMENTS.

       ``(a) In General.--Except as otherwise provided in this 
     section and notwithstanding any other provision of law, the 
     following banks, associations, and institutions may invest in 
     any Rural Business Investment Company or in any entity 
     established to invest solely in Rural Business Investment 
     Companies:
       ``(1) Any national bank.
       ``(2) Any member bank of the Federal Reserve System.
       ``(3) Any Federal savings association.
       ``(4) Any Farm Credit System institution described in 
     section 1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 
     2002(a)).
       ``(5) Any insured bank that is not a member of the Federal 
     Reserve System, to the extent permitted under applicable 
     State law.
       ``(b) Limitation.--No bank, association, or institution 
     described in subsection (a) may make investments described in 
     subsection (a) that are greater than 5 percent of the capital 
     and surplus of the bank, association, or institution.
       ``(c) Limitation on Rural Business Investment Companies 
     Controlled by Farm Credit System Institutions.--If a Farm 
     Credit System institution described in section 1.2(a) of the 
     Farm Credit Act of 1971 (12 U.S.C. 2002(a)) holds more than 
     30 percent of the voting shares of a Rural Business 
     Investment Company, either alone or in conjunction with other 
     System institutions (or affiliates), the Rural Business 
     Investment Company shall not provide equity investments in, 
     or provide other financial assistance to, entities that are 
     not otherwise eligible to receive financing from the Farm 
     Credit System under that Act (12 U.S.C. 2001 et seq.).

     ``SEC. 384K. REPORTING REQUIREMENT.

       ``Each Rural Business Investment Company that participates 
     in the program established under this subtitle shall provide 
     to the Secretary such information as the Secretary may 
     require, including--
       ``(1) information relating to the measurement criteria that 
     the Rural Business Investment Company proposed in the program 
     application of the Rural Business Investment Company; and
       ``(2) in each case in which the Rural Business Investment 
     Company under this subtitle makes an investment in, or a loan 
     or grant to, a business that is not located in a rural area, 
     a report on the number and percentage of employees of the 
     business who reside in those areas.

     ``SEC. 384L. EXAMINATIONS.

       ``(a) In General.--Each Rural Business Investment Company 
     that participates in the program established under this 
     subtitle shall be subject to examinations made at the 
     direction of the Secretary in accordance with this section.
       ``(b) Assistance of Private Sector Entities.--An 
     examination under this section may be conducted with the 
     assistance of a private sector entity that has the 
     qualifications and the expertise necessary to conduct such an 
     examination.
       ``(c) Costs.--
       ``(1) In general.--The Secretary may assess the cost of an 
     examination under this section, including compensation of the 
     examiners, against the Rural Business Investment Company 
     examined.
       ``(2) Payment.--Any Rural Business Investment Company 
     against which the Secretary assesses costs under this 
     paragraph shall pay the costs.
       ``(d) Deposit of Funds.--Funds collected under this section 
     shall--
       ``(1) be deposited in the account that incurred the costs 
     for carrying out this section;
       ``(2) be made available to the Secretary to carry out this 
     section, without further appropriation; and
       ``(3) remain available until expended.

     ``SEC. 384M. INJUNCTIONS AND OTHER ORDERS.

       ``(a) In General.--
       ``(1) Application by secretary.--Whenever, in the judgment 
     of the Secretary, a Rural Business Investment Company or any 
     other person has engaged or is about to engage in any act or 
     practice that constitutes or will constitute a violation of a 
     provision of this subtitle (including any rule, regulation, 
     order, or participation agreement under this subtitle), the 
     Secretary may apply to the appropriate district court of the 
     United States for an order enjoining the act or practice, or 
     for an order enforcing compliance with the provision, rule, 
     regulation, order, or participation agreement.
       ``(2) Jurisdiction; relief.--The court shall have 
     jurisdiction over the action and, on a showing by the 
     Secretary that the Rural Business Investment Company or other 
     person has engaged or is about to engage in an act or 
     practice described in paragraph (1), a permanent or temporary 
     injunction, restraining order, or other order, shall be 
     granted without bond.
       ``(b) Jurisdiction.--
       ``(1) In general.--In any proceeding under subsection (a), 
     the court as a court of equity may, to such extent as the 
     court considers necessary, take exclusive jurisdiction over 
     the Rural Business Investment Company and the assets of the 
     Rural Business Investment Company, wherever located.
       ``(2) Trustee or receiver.--The court shall have 
     jurisdiction in any proceeding described in paragraph (1) to 
     appoint a trustee or receiver to hold or administer the 
     assets.
       ``(c) Secretary As Trustee or Receiver.--
       ``(1) Authority.--The Secretary may act as trustee or 
     receiver of a Rural Business Investment Company.
       ``(2) Appointment.--On the request of the Secretary, the 
     court shall appoint the Secretary to act as a trustee or 
     receiver of a Rural Business Investment Company unless the 
     court considers the appointment inequitable or otherwise 
     inappropriate by reason of any special circumstances 
     involved.

     ``SEC. 384N. ADDITIONAL PENALTIES FOR NONCOMPLIANCE.

       ``(a) In General.--With respect to any Rural Business 
     Investment Company that violates or fails to comply with this 
     subtitle (including any rule, regulation, order, or 
     participation agreement under this subtitle), the Secretary 
     may, in accordance with this section--
       ``(1) void the participation agreement between the 
     Secretary and the Rural Business Investment Company; and
       ``(2) cause the Rural Business Investment Company to 
     forfeit all of the rights and privileges derived by the Rural 
     Business Investment Company under this subtitle.
       ``(b) Adjudication of Noncompliance.--
       ``(1) In general.--Before the Secretary may cause a Rural 
     Business Investment Company to forfeit rights or privileges 
     under subsection (a), a court of the United States of 
     competent jurisdiction must find that the Rural Business 
     Investment Company committed a violation, or failed to 
     comply, in a cause of action brought for that purpose in the 
     district, territory, or other place subject to the 
     jurisdiction of the United States, in which the principal 
     office of the Rural Business Investment Company is located.
       ``(2) Parties authorized to file causes of action.--Each 
     cause of action brought by the United States under this 
     subsection shall be brought by the Secretary or by the 
     Attorney General.

     ``SEC. 384O. UNLAWFUL ACTS AND OMISSIONS; BREACH OF FIDUCIARY 
                   DUTY.

       ``(a) Parties Deemed To Commit a Violation.--Whenever any 
     Rural Business Investment Company violates this subtitle 
     (including any rule, regulation, order, or participation 
     agreement under this subtitle), by reason of the failure of 
     the Rural Business Investment Company to comply with this 
     subtitle or by reason of its engaging in any act or practice 
     that constitutes or will constitute a violation of this 
     subtitle, the violation shall also be deemed to be a 
     violation and an unlawful act committed by any person that, 
     directly or indirectly, authorizes, orders, participates in, 
     causes, brings about, counsels, aids, or abets in the 
     commission of any acts, practices, or transactions that 
     constitute or will constitute, in whole or in part, the 
     violation.
       ``(b) Fiduciary Duties.--It shall be unlawful for any 
     officer, director, employee, agent, or other participant in 
     the management or conduct of the affairs of a Rural Business 
     Investment Company to engage in any act or practice, or to 
     omit any act or practice, in breach of the fiduciary duty of 
     the officer, director, employee, agent, or participant if, as 
     a result of the act or practice, the Rural Business 
     Investment Company suffers or is in imminent danger of 
     suffering financial loss or other damage.
       ``(c) Unlawful Acts.--Except with the written consent of 
     the Secretary, it shall be unlawful--
       ``(1) for any person to take office as an officer, 
     director, or employee of any Rural Business Investment 
     Company, or to become an agent or participant in the conduct 
     of the affairs or management of a Rural Business Investment 
     Company, if the person--
       ``(A) has been convicted of a felony, or any other criminal 
     offense involving dishonesty or breach of trust; or
       ``(B) has been found civilly liable in damages, or has been 
     permanently or temporarily enjoined by an order, judgment, or 
     decree of a court of competent jurisdiction, by reason of any 
     act or practice involving fraud, or breach of trust; and
       ``(2) for any person to continue to serve in any of the 
     capacities described in paragraph (1), if--
       ``(A) the person is convicted of a felony, or any other 
     criminal offense involving dishonesty or breach of trust; or
       ``(B) the person is found civilly liable in damages, or is 
     permanently or temporarily enjoined by an order, judgment, or 
     decree of a court of competent jurisdiction, by reason of any 
     act or practice involving fraud or breach of trust.

[[Page S12928]]

     ``SEC. 384P. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS.

       ``Using the procedures established by the Secretary for 
     removing or suspending a director or an officer of a Rural 
     Business Investment Company, the Secretary may remove or 
     suspend any director or officer of any Rural Business 
     Investment Company.

     ``SEC. 384Q. CONTRACTING OF FUNCTIONS.

       ``Notwithstanding any other provision of law, the Secretary 
     shall enter into an interagency agreement with the 
     Administrator of the Small Business Administration to carry 
     out, on behalf of the Secretary, the day-to-day management 
     and operation of the program authorized by this subtitle.

     ``SEC. 384R. REGULATIONS.

       ``The Secretary may promulgate such regulations as the 
     Secretary considers necessary to carry out this subtitle.

     ``SEC. 384S. FUNDING.

       ``(a) In General.--Not later than 30 days after the date of 
     enactment of this Act, out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Secretary of Agriculture--
       ``(1) such sums as may be necessary for the cost of 
     guaranteeing $350,000,000 of debentures under this subtitle; 
     and
       ``(2) $50,000,000 to make grants under this subtitle.
       ``(b) Receipt and Acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under subsection (a), 
     without further appropriation.
       ``(c) Availability of Funds.--Funds transferred under 
     subsection (a) shall remain available until expended.''.

     SEC. 603. FULL FUNDING OF PENDING RURAL DEVELOPMENT LOAN AND 
                   GRANT APPLICATIONS.

       (a) Definition of Application.--In this section, the term 
     ``application'' does not include an application for a loan, 
     loan guarantee, or grant that, as of the date of enactment of 
     this Act, is in the preapplication phase of consideration 
     under regulations of the Secretary of Agriculture in effect 
     on the date of enactment of this Act.
       (b) Account.--There is established in the Treasury of the 
     United States an account to be known as the ``Rural America 
     Infrastructure Development Account'' (referred to in this 
     section as the ``Account'') to fund rural development loans, 
     loan guarantees, and grants described in subsection (d) that 
     are pending on the date of enactment of this Act.
       (c) Funding.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Secretary of Agriculture such sums as are 
     necessary to carry out this section, to remain available 
     until expended.
       (2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.
       (d) Use of Funds.--
       (1) Eligible programs.--Subject to paragraph (2), the 
     Secretary shall use the funds in the Account to provide funds 
     for applications that are pending on the date of enactment of 
     this Act for--
       (A) community facility direct loans under section 306(a)(1) 
     of the Consolidated Farm and Rural Development Act (7 U.S.C. 
     1926(a)(1));
       (B) community facility grants under paragraph (19), (20), 
     or (21) of section 306(a) of that Act (7 U.S.C. 1926(a));
       (C) water or waste disposal grants or direct loans under 
     paragraph (1) or (2) of section 306(a) of that Act (7 U.S.C. 
     1926(a));
       (D) rural water or wastewater technical assistance and 
     training grants under section 306(a)(14) of that Act (7 
     U.S.C. 1926(a)(14));
       (E) emergency community water assistance grants under 
     section 306A of that Act (7 U.S.C. 1926a);
       (F) business and industry guaranteed loans authorized under 
     section 310B(a)(1)(A) of that Act (7 U.S.C. 1932(a)(1)(A)); 
     and
       (G) solid waste management grants under section 310B(b) of 
     that Act (7 U.S.C. 1932(b)).
       (2) Limitations.--
       (A) Appropriated amounts.--Funds in the Account shall be 
     available to the Secretary to provide funds for pending 
     applications for loans, loan guarantees, and grants described 
     in paragraph (1) only to the extent that funds for the loans, 
     loan guarantees, and grants appropriated in the annual 
     appropriations Act for fiscal year 2002 have been exhausted.
       (B) Program requirements.--The Secretary may use the 
     Account to provide funds for a pending application for a 
     loan, loan guarantee, or grant described in paragraph (1) 
     only if the Secretary processes, reviews, and approves the 
     application in accordance with regulations in effect on the 
     date of enactment of this Act.

     SEC. 604. RURAL ENDOWMENT PROGRAM.

       (a) In General.--The Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1921 et seq.) (as amended by 
     section 602) is amended by adding at the end the following:

                 ``Subtitle I--Rural Endowment Program

     ``SEC. 385A. PURPOSE.

       ``The purpose of this subtitle is to provide rural 
     communities with technical and financial assistance to 
     implement comprehensive community development strategies to 
     reduce the economic and social distress resulting from 
     poverty, high unemployment, outmigration, plant closings, 
     agricultural downturn, declines in the natural resource-based 
     economy, or environmental degradation.

     ``SEC. 385B. DEFINITIONS.

       ``In this subtitle:
       ``(1) Comprehensive community development strategy.--The 
     term `comprehensive community development strategy' means a 
     community development strategy described in section 385C(e).
       ``(2) Eligible rural area.--
       ``(A) In general.--The term `eligible rural area' means an 
     area with a population of 25,000 inhabitants or less, as 
     determined by the Secretary using the most recent decennial 
     census.
       ``(B) Exclusions.--The term `eligible rural area' does not 
     include--
       ``(i) any area designated by the Secretary as a rural 
     empowerment zone or rural enterprise community; or
       ``(ii) an urbanized area immediately adjacent to an 
     incorporated city or town with a population of more than 
     25,000 inhabitants.
       ``(3) Endowment fund.--The term `endowment fund' means a 
     long-term fund that an approved program entity is required to 
     establish under section 385C(f)(3).
       ``(4) Performance-based benchmarks.--The term `performance-
     based benchmarks' means a set of annualized goals and tasks 
     established by a recipient of a grant under the Program, in 
     collaboration with the Secretary, for the purpose of 
     measuring performance in meeting the comprehensive community 
     development strategy of the recipient.
       ``(5) Program.--The term `Program' means the Rural 
     Endowment Program established under section 385C(a).
       ``(6) Program entity.--The term `program entity' means--
       ``(A) a private nonprofit community-based development 
     organization;
       ``(B) a unit of local government (including a 
     multijurisdictional unit of local government);
       ``(C) an Indian tribe (as defined in section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b));
       ``(D) a consortium comprised of an organization described 
     in subparagraph (A) and a unit of local government; or
       ``(E) a consortium of entities specified in subparagraphs 
     (A) through (D);
     that serves an eligible rural area.
       ``(7) Program-related investment.--The term `program-
     related investment' means--
       ``(A) a loan, loan guarantee, grant, payment of a technical 
     fee, or other expenditure provided for an affordable housing, 
     community facility, small business, environmental 
     improvement, or other community development project that is 
     part of a comprehensive community development strategy; and
       ``(B) support services relating to a project described in 
     subparagraph (A).

     ``SEC. 385C. RURAL ENDOWMENT PROGRAM.

       ``(a) Establishment.--
       ``(1) In general.--The Secretary may establish a program, 
     to be known as the `Rural Endowment Program', to provide 
     approved program entities with assistance in developing and 
     implementing comprehensive community development strategies 
     for eligible rural areas.
       ``(2) Purposes.--The purposes of the Program are--
       ``(A) to enhance the ability of an eligible rural area to 
     engage in comprehensive community development;
       ``(B) to leverage private and public resources for the 
     benefit of community development efforts in eligible rural 
     areas;
       ``(C) to make available staff of Federal agencies to 
     directly assist the community development efforts of an 
     approved program entity or eligible rural area; and
       ``(D) to strengthen the asset base of an eligible rural 
     area to further long-term, ongoing community development.
       ``(b) Applications.--
       ``(1) In general.--To receive an endowment grant under the 
     Program, the eligible entity shall submit an application at 
     such time, in such form, and containing such information as 
     the Secretary may require.
       ``(2) Regional applications.--
       ``(A) In general.--Where appropriate, the Secretary shall 
     encourage regional applications from program entities serving 
     more than 1 eligible rural area.
       ``(B) Criteria for applications.--To be eligible for an 
     endowment grant for a regional application, the program 
     entities that submit the application shall demonstrate that--
       ``(i) a comprehensive community development strategy for 
     the eligible rural areas is best accomplished through a 
     regional approach; and
       ``(ii) the combined population of the eligible rural areas 
     covered by the comprehensive community development strategy 
     is 75,000 inhabitants or less.
       ``(C) Amount of endowment grants.--For the purpose of 
     subsection (f)(2), 2 or more program entities that submit a 
     regional application shall be considered to be a single 
     program entity.
       ``(3) Preference.--The Secretary shall give preference to a 
     joint application submitted by a private, nonprofit community 
     development corporation and a unit of local government.
       ``(c) Entity Approval.--The Secretary shall approve a 
     program entity to receive grants under the Program, if the 
     program entity meets criteria established by the Secretary, 
     including the following:

[[Page S12929]]

       ``(1) Distressed rural area.--The program entity shall 
     serve a rural area that suffers from economic or social 
     distress resulting from poverty, high unemployment, 
     outmigration, plant closings, agricultural downturn, declines 
     in the natural resource-based economy, or environmental 
     degradation.
       ``(2) Capacity to implement strategy.--The program entity 
     shall demonstrate the capacity to implement a comprehensive 
     community development strategy.
       ``(3) Goals.--The goals described in the application 
     submitted under subsection (b) shall be consistent with this 
     section.
       ``(4) Participation process.--The program entity shall 
     demonstrate the ability to convene and maintain a multi-
     stakeholder, community-based participation process.
       ``(d) Planning Grants to Conditionally Approved Program 
     Entities.--
       ``(1) In general.--The Secretary may award supplemental 
     grants to approved program entities to assist the approved 
     program entities in the development of a comprehensive 
     community development strategy under subsection (e).
       ``(2) Eligibility for supplemental grants.--In determining 
     whether to award a supplemental grant to an approved program 
     entity, the Secretary shall consider the economic need of the 
     approved program entity.
       ``(3) Limitations on amount of grants.--Under this 
     subsection, an approved program entity may receive a 
     supplemental grant in an amount of not more than $100,000.
       ``(e) Endowment Grant Award.--
       ``(1) In general.--To be eligible for an endowment grant 
     under the Program, an approved program entity shall develop, 
     and obtain the approval of the Secretary for, a comprehensive 
     community development strategy that--
       ``(A) is designed to reduce economic or social distress 
     resulting from poverty, high unemployment, outmigration, 
     plant closings, agricultural downturn, declines in the 
     natural resource-based economy, or environmental degradation;
       ``(B) addresses a broad range of the development needs of a 
     community, including economic, social, and environmental 
     needs, for a period of not less than 10 years;
       ``(C) is developed with input from a broad array of local 
     governments and business, civic, and community organizations;
       ``(D) specifies measurable performance-based outcomes for 
     all activities; and
       ``(E) includes a financial plan for achieving the outcomes 
     and activities of the comprehensive community development 
     strategy that identifies sources for, or a plan to meet, the 
     requirement for a non-Federal share under subsection 
     (f)(4)(B).
       ``(2) Final approval.--
       ``(A) In general.--An approved program entity shall receive 
     final approval if the Secretary determines that--
       ``(i) the comprehensive community development strategy of 
     the approved program entity meets the requirements of this 
     section;
       ``(ii) the management and organizational structure of the 
     approved program entity is sufficient to oversee fund and 
     development activities;
       ``(iii) the approved program entity has established an 
     endowment fund; and
       ``(iv) the approved program entity will be able to provide 
     the non-Federal share required under subsection (f)(4)(B).
       ``(B) Conditions.--As part of the final approval, the 
     approved program entity shall agree to--
       ``(i) achieve, to the maximum extent practicable, 
     performance-based benchmarks; and
       ``(ii) comply with the terms of the comprehensive community 
     development strategy for a period of not less than 10 years.
       ``(f) Endowment Grants.--
       ``(1) In general.--Under the Program, the Secretary may 
     make endowment grants to approved program entities with final 
     approval to implement an approved comprehensive community 
     development strategy.
       ``(2) Amount of grants.--An endowment grant to an approved 
     program entity shall be in an amount of not more than 
     $6,000,000, as determined by the Secretary based on--
       ``(A) the size of the population of the eligible rural area 
     for which the endowment grant is to be used;
       ``(B) the size of the eligible rural area for which the 
     endowment grant is to be used;
       ``(C) the extent of the comprehensive community development 
     strategy to be implemented using the endowment grant award; 
     and
       ``(D) the extent to which the community suffers from 
     economic or social distress resulting from--
       ``(i) poverty;
       ``(ii) high unemployment;
       ``(iii) outmigration;
       ``(iv) plant closings;
       ``(v) agricultural downturn;
       ``(vi) declines in the natural resource-based economy; or
       ``(vii) environmental degradation.
       ``(3) Endowment funds.--
       ``(A) Establishment.--On notification from the Secretary 
     that the program entity has been approved under subsection 
     (c), the approved program entity shall establish an endowment 
     fund.
       ``(B) Funding of endowment.--Federal funds provided in the 
     form of an endowment grant under the Program shall--
       ``(i) be deposited in the endowment fund;
       ``(ii) be the sole property of the approved program entity;
       ``(iii) be used in a manner consistent with this subtitle; 
     and
       ``(iv) be subject to oversight by the Secretary for a 
     period of not more than 10 years.
       ``(C) Interest.--Interest earned on Federal funds in the 
     endowment fund shall be--
       ``(i) retained by the grantee; and
       ``(ii) treated as Federal funds are treated under 
     subparagraph (B).
       ``(D) Limitation.--The Secretary shall promulgate 
     regulations on matching funds and returns on program-related 
     investments only to the extent that such funds or proceeds 
     are used in a manner consistent with this subtitle.
       ``(4) Conditions.--
       ``(A) Disbursement.--
       ``(i) In general.--Each endowment grant award shall be 
     disbursed during a period not to exceed 5 years beginning 
     during the fiscal year containing the date of final approval 
     of the approved program entity under subsection (e)(3).
       ``(ii) Manner of disbursement.--Subject to subparagraph 
     (B), the Secretary may disburse a grant award in 1 lump sum 
     or in incremental disbursements made each fiscal year.
       ``(iii) Incremental disbursements.--If the Secretary elects 
     to make incremental disbursements, for each fiscal year after 
     the initial disbursement, the Secretary shall make a 
     disbursement under clause (i) only if the approved program 
     entity--

       ``(I) has met the performance-based benchmarks of the 
     approved program entity for the preceding fiscal year; and
       ``(II) has provided the non-Federal share required for the 
     preceding fiscal year under subparagraph (B).

       ``(iv) Advance disbursements.--The Secretary may make 
     disbursements under this paragraph notwithstanding any 
     provision of law limiting grant disbursements to amounts 
     necessary to cover expected expenses on a term basis.
       ``(B) Non-federal share.--
       ``(i) In general.--Except as provided in clause (ii), for 
     each disbursement under subparagraph (A), the Secretary shall 
     require the approved program entity to provide a non-Federal 
     share in an amount equal to 50 percent of the amount of funds 
     received by the approved program entity under the 
     disbursement.
       ``(ii) Lower non-federal share.--In the case of an approved 
     program entity that serves a small, poor rural area (as 
     determined by the Secretary), the Secretary may--

       ``(I) reduce the non-Federal share to not less than 20 
     percent; and
       ``(II) allow the non-Federal share to be provided in the 
     form of in-kind contributions.

       ``(iii) Binding commitments; plan.--For the purpose of 
     meeting the non-Federal share requirement with respect to the 
     first disbursement of an endowment grant award to the 
     approved program entity under the Program, an approved 
     program entity shall--

       ``(I) have, at a minimum, binding commitments to provide 
     the non-Federal share required with respect to the first 
     disbursement of the endowment grant award; and
       ``(II) if the Secretary is making incremental disbursements 
     of a grant, develop a viable plan for providing the remaining 
     amount of the required non-Federal share.

       ``(C) Limitations.--
       ``(i) In general.--Subject to clause (ii), of each 
     disbursement, an approved program entity shall use--

       ``(I) not more than 10 percent for administrative costs of 
     carrying out program-related investments;
       ``(II) not more than 20 percent for the purpose of 
     maintaining a loss reserve account; and
       ``(III) the remainder for program-related investments 
     contained in the comprehensive community development 
     strategy.

       ``(ii) Loss reserve account.--If all disbursed funds 
     available under a grant are expended in accordance with 
     clause (i) and the grant recipient has no expected losses to 
     cover for a fiscal year, the recipient may use funds in the 
     loss reserve account described in clause (i)(II) for program-
     related investments described in clause (i)(III) for which no 
     reserve for losses is required.
       ``(g) Federal Agency Assistance.--Under the Program, the 
     Secretary shall provide and coordinate technical assistance 
     for grant recipients by designated field staff of Federal 
     agencies.
       ``(h) Private Technical Assistance.--
       ``(1) In general.--Under the Program, the Secretary may 
     make grants to qualified intermediaries to provide technical 
     assistance and capacity building to approved program entities 
     under the Program.
       ``(2) Duties.--A qualified intermediary that receives a 
     grant under this subsection shall--
       ``(A) provide assistance to approved program entities in 
     developing, coordinating, and overseeing investment strategy;
       ``(B) provide technical assistance in all aspects of 
     planning, developing, and managing the Program; and
       ``(C) facilitate Federal and private sector involvement in 
     rural community development.
       ``(3) Eligibility.--To be considered a qualified 
     intermediary under this subsection, an intermediary shall--
       ``(A) be a private, nonprofit community development 
     organization;
       ``(B) have expertise in Federal or private rural community 
     development policy or programs; and
       ``(C) have experience in providing technical assistance, 
     planning, and capacity building

[[Page S12930]]

     assistance to rural communities and nonprofit entities in 
     eligible rural areas.
       ``(4) Maximum amount of grants.--A qualified intermediary 
     may receive a grant under this subsection of not more than 
     $100,000.
       ``(5) Funding.--Of the amounts made available under section 
     385D, the Secretary may use to carry out this subsection not 
     more than $2,000,000 for each of not more than 2 fiscal 
     years.

     ``SEC. 385D. FUNDING.

       ``(a) Fiscal Years 2002 and 2003.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this subtitle, out of any funds in the Treasury 
     not otherwise appropriated, the Secretary of the Treasury 
     shall transfer to the Secretary of Agriculture to carry out 
     this subtitle $82,000,000 for the period of fiscal years 2002 
     and 2003, to remain available until expended.
       ``(2) Schedule for obligations.--Of the amounts made 
     available under paragraph (1)--
       ``(A) not more than $5,000,000 shall be obligated to carry 
     out section 385C(d);
       ``(B) not less than $75,000,000 shall be obligated to carry 
     out section 385C(f); and
       ``(C) not less than $2,000,000 shall be obligated to carry 
     out section 385C(h).
       ``(3) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this subtitle the funds transferred under paragraph (1), 
     without further appropriation.
       ``(b) Fiscal Years 2004 through 2006.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this subtitle for each of fiscal years 2004 through 2006.''.

     SEC. 605. ENHANCEMENT OF ACCESS TO BROADBAND SERVICE IN RURAL 
                   AREAS.

       The Rural Electrification Act of 1936 (7 U.S.C. 901 et 
     seq.) is amended by adding at the end the following:

                   ``TITLE VI--RURAL BROADBAND ACCESS

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

       ``(a) Purpose.--The purpose of this section is to provide 
     grants, loans, and loan guarantees to provide funds for the 
     costs of the construction, improvement, and acquisition of 
     facilities and equipment for broadband service in eligible 
     rural communities.
       ``(b) Definitions.--In this section:
       ``(1) Broadband service.--The term `broadband service' 
     means any technology identified by the Secretary as having 
     the capacity to transmit data to enable a subscriber to the 
     service to originate and receive high-quality voice, data, 
     graphics, or video.
       ``(2) Eligible rural community.--The term `eligible rural 
     community' means any incorporated or unincorporated place 
     that--
       ``(A) has not more than 20,000 inhabitants, based on the 
     most recent available population statistics of the Bureau of 
     the Census; and
       ``(B) is not located in an area designated as a standard 
     metropolitan statistical area.
       ``(c) Grants.--The Secretary shall make grants to eligible 
     entities described in subsection (e) to provide funds for the 
     construction, improvement, or acquisition of facilities and 
     equipment for the provision of broadband service in eligible 
     rural communities.
       ``(d) Loans and Loan Guarantees.--The Secretary shall make 
     or guarantee loans to eligible entities described in 
     subsection (e) to provide funds for the construction, 
     improvement, or acquisition of facilities and equipment for 
     the provision of broadband service in eligible rural 
     communities.
       ``(e) Eligible Entities.--To be eligible to obtain a grant 
     under this section, an entity must--
       ``(1) be eligible to obtain a loan or loan guarantee to 
     furnish, improve, or extend a rural telecommunications 
     service under this Act; and
       ``(2) submit to the Secretary a proposal for a project that 
     meets the requirements of this section.
       ``(f) Broadband Service.--The Secretary shall, from time to 
     time as advances in technology warrant, review and recommend 
     modifications of rate-of-data transmission criteria for 
     purposes of the identification of broadband service 
     technologies under subsection (b)(1).
       ``(g) Technological Neutrality.--For purposes of 
     determining whether or not to make a grant, loan, or loan 
     guarantee for a project under this section, the Secretary 
     shall not take into consideration the type of technology 
     proposed to be used under the project.
       ``(h) Terms and Conditions for Loans and Loan Guarantees.--
     A loan or loan guarantee under subsection (d) shall--
       ``(1) be made available in accordance with the requirements 
     of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et 
     seq.);
       ``(2) bear interest at an annual rate of, as determined by 
     the Secretary--
       ``(A) 4 percent per annum; or
       ``(B) the current applicable market rate; and
       ``(3) have a term not to exceed the useful life of the 
     assets constructed, improved, or acquired with the proceeds 
     of the loan or extension of credit.
       ``(i) Use of Loan Proceeds to Refinance Loans for 
     Deployment of Broadband Service.--Notwithstanding any other 
     provision of this Act, the proceeds of any loan made by the 
     Secretary under this Act may be used by the recipient of the 
     loan for the purpose of refinancing an outstanding obligation 
     of the recipient on another telecommunications loan made 
     under this Act if the use of the proceeds for that purpose 
     will further the construction, improvement, or acquisition of 
     facilities and equipment for the provision of broadband 
     service in eligible rural communities.
       ``(j) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this Act, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     Agriculture to carry out this section $100,000,000, to remain 
     available until expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.
       ``(3) Allocation of funds.--
       ``(A) In general.--From amounts made available for each 
     fiscal year under paragraph (1), the Secretary shall--
       ``(i) establish a national reserve for grants, loans, and 
     loan guarantees to eligible entities in States under this 
     section; and
       ``(ii) allocate amounts in the reserve to each State for 
     each fiscal year for grants, loans, and loan guarantees to 
     eligible entities in the State.
       ``(B) Amount.--The amount of an allocation made to a State 
     for a fiscal year under subparagraph (A) shall bear the same 
     ratio to the amount of allocations made for all States for 
     the fiscal year as the number of communities with a 
     population of 2,500 inhabitants or less in the State bears to 
     the number of communities with a population of 2,500 
     inhabitants or less in all States, as determined on the basis 
     of the last available census.
       ``(C) Unobligated amounts.--Any amounts in the reserve 
     established for a State for a fiscal year under subparagraph 
     (B) that are not obligated by April 1 of the fiscal year 
     shall be available to the Secretary to make grants, loans, 
     and loan guarantees under this section to eligible entities 
     in any State, as determined by the Secretary.
       ``(k) Termination of authority.--
       ``(1) In general.--No grant, loan, or loan guarantee may be 
     made under this section after September 30, 2006.
       ``(2) Effect on validity of grant, loan, or loan 
     guarantee.--Notwithstanding paragraph (1), any grant, loan, 
     or loan guarantee made under this section before the date 
     specified in paragraph (1) shall be valid.''.

     SEC. 606. VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOPMENT 
                   GRANTS.

       Section 231 of the Agricultural Risk Protection Act of 2000 
     (7 U.S.C. 1621 note; Public Law 106-224) is amended--
       (1) by redesignating subsections (b) through (d) as 
     subsections (c) through (e), respectively;
       (2) by striking subsection (a) and inserting the following:
       ``(a) Definition of Value-Added Agricultural Product.--The 
     term `value-added agricultural product' means any 
     agricultural commodity or product that--
       ``(1)(A) has undergone a change in physical state; or
       ``(B) was produced in a manner that enhances the value of 
     the agricultural commodity or product, as demonstrated 
     through a business plan that shows the enhanced value, as 
     determined by the Secretary; and
       ``(2) as a result of the change in physical state or the 
     manner in which the agricultural commodity or product was 
     produced--
       ``(A) the customer base for the agricultural commodity or 
     product has been expanded; and
       ``(B) a greater portion of the revenue derived from the 
     processing of the agricultural commodity or product is 
     available to the producer of the commodity or product.
       ``(b) Grant Program.--
       ``(1) Purposes.--The purposes of this subsection are--
       ``(A) to increase the share of the food and agricultural 
     system profit received by agricultural producers;
       ``(B) to increase the number and quality of rural self-
     employment opportunities in agriculture and agriculturally-
     related businesses and the number and quality of jobs in 
     agriculturally-related businesses;
       ``(C) to help maintain a diversity of size in farms and 
     ranches by stabilizing the number of small and mid-sized 
     farms;
       ``(D) to increase the diversity of food and other 
     agricultural products available to consumers, including 
     nontraditional crops and products and products grown or 
     raised in a manner that enhances the value of the products to 
     the public; and
       ``(E) to conserve and enhance the quality of land, water, 
     and energy resources, wildlife habitat, and other landscape 
     values and amenities in rural areas.
       ``(2) Grants.--From amounts made available under paragraph 
     (6), the Secretary shall make award competitive grants--
       ``(A) to an eligible independent producer (as determined by 
     the Secretary) of a value-added agricultural product to 
     assist the producer--
       ``(i) to develop a business plan for viable marketing 
     opportunities for the value-added agricultural product; or
       ``(ii) to develop strategies that are intended to create 
     marketing opportunities for the producer; and
       ``(B) to an eligible nonprofit entity (as determined by the 
     Secretary) to assist the entity--

[[Page S12931]]

       ``(i) to develop a business plan for viable marketing 
     opportunities in emerging markets for a value-added 
     agricultural product; or
       ``(ii) to develop strategies that are intended to create 
     marketing opportunities in emerging markets for the value-
     added agricultural product.
       ``(3) Amount of grant.--
       ``(A) In general.--The total amount provided under this 
     subsection to a grant recipient may not exceed $500,000.
       ``(B) Priority.--The Secretary shall give priority to grant 
     proposals for less than $200,000 submitted under this 
     subsection.
       ``(4) Grantee strategies.--A grantee under paragraph (2) 
     shall use the grant--
       ``(A) to develop a business plan or perform a feasibility 
     study to establish a viable marketing opportunity for a 
     value-added agricultural product; or
       ``(B) to provide capital to establish alliances or business 
     ventures that allow the producer of the value-added 
     agricultural product to better compete in domestic or 
     international markets.
       ``(5) Grants for marketing or processing certified organic 
     agricultural products.--
       ``(A) In general.--Out of any amount that is made available 
     to the Secretary for a fiscal year under paragraph (2), the 
     Secretary shall use not less than 5 percent of the amount for 
     grants to assist producers of certified organic agricultural 
     products in post-farm marketing or processing of the products 
     through a business or cooperative ventures that--
       ``(i) expand the customer base of the certified organic 
     agricultural products; and
       ``(ii) increase the portion of product revenue available to 
     the producers.
       ``(B) Certified organic agricultural product.--For the 
     purposes of this paragraph, a certified organic agricultural 
     product does not have to meet the requirements of the 
     definition of `value-added agricultural product' under 
     subsection (a).
       ``(C) Insufficient applications.--If, for any fiscal year, 
     the Secretary receives an insufficient quantity of 
     applications for grants described in subparagraph (A) to use 
     the funds reserved under subparagraph (A), the Secretary may 
     use the excess reserved funds to make grants for any other 
     purpose authorized under this subsection.
       ``(6) Funding.--
       ``(A) In general.--Not later than 30 days after the date of 
     enactment of this paragraph, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     Agriculture to carry out this subsection $75,000,000, to 
     remain available until expended.
       ``(B) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this subsection the funds transferred under subparagraph (A), 
     without further appropriation.'';
       (3) in subsection (c)(1) (as redesignated)--
       (A) by striking ``subsection (a)(2)'' and inserting 
     ``subsection (b)(2)'';
       (B) by striking ``$5,000,000'' and inserting ``7.5 
     percent''; and
       (C) by striking ``subsection (a)'' and inserting 
     ``subsection (b)''; and
       (4) in subsection (d) (as redesignated), by striking 
     ``subsections (a) and (b)'' and inserting ``subsections (b) 
     and (c)''.

     SEC. 607. NATIONAL RURAL DEVELOPMENT INFORMATION 
                   CLEARINGHOUSE.

       Section 2381 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 3125b) is amended to read as 
     follows:

     ``SEC. 2381. NATIONAL RURAL DEVELOPMENT INFORMATION 
                   CLEARINGHOUSE.

       ``(a) Establishment.--The Secretary shall establish and 
     maintain, within the rural development mission area of the 
     Department of Agriculture, a National Rural Development 
     Information Clearinghouse (referred to in this section as the 
     `Clearinghouse') to perform the functions specified in 
     subsection (b).
       ``(b) Functions.--The Clearinghouse shall collect 
     information and data from, and disseminate information and 
     data to, any person or public or private entity about 
     programs and services provided by Federal, State, local, and 
     tribal agencies, institutions of higher education, and 
     private, for-profit, and nonprofit organizations and 
     institutions under which a person or public or private entity 
     residing or operating in a rural area may be eligible for any 
     kind of financial, technical, or other assistance, including 
     business, venture capital, economic, credit and community 
     development assistance, health care, job training, education, 
     and emotional and financial counseling.
       ``(c) Modes of Collection and Dissemination of 
     Information.--In addition to other modes for the collection 
     and dissemination of the types of information and data 
     specified under subsection (b), the Secretary shall ensure 
     that the Clearinghouse maintains an Internet website that 
     provides for dissemination and collection, through voluntary 
     submission or posting, of the information and data.
       ``(d) Federal Agencies.--On request of the Secretary and to 
     the extent permitted by law, the head of a Federal agency 
     shall provide to the Clearinghouse such information as the 
     Secretary may request to enable the Clearinghouse to carry 
     out this section.
       ``(e) State, Local, and Tribal Agencies, Institutions of 
     Higher Education, and Nonprofit and For-Profit 
     Organizations.--The Secretary shall request State, local, and 
     tribal agencies, institutions of higher education, and 
     private, for-profit, and nonprofit organizations and 
     institutions to provide to the Clearinghouse information 
     concerning applicable programs or services described in 
     subsection (b).
       ``(f) Promotion of Clearinghouse.--The Secretary 
     prominently shall promote the existence and availability of 
     the Clearinghouse in all activities of the Department of 
     Agriculture relating to rural areas of the United States.
       ``(g) Funding.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall use to operate and maintain the Clearinghouse not more 
     than $600,000 of the funds available to the Rural Housing 
     Service, the Rural Utilities Service, and the Rural Business-
     Cooperative Service for each fiscal year.
       ``(2) Limitation.--Funds available to the Rural Housing 
     Service, the Rural Utilities Service, and the Rural Business-
     Cooperative Service for the payment of loan costs (as defined 
     in section 502 of Federal Credit Reform Act of 1990 (2 U.S.C. 
     661a)) shall not be used to operate and maintain the 
     Clearinghouse.''.

           Subtitle B--National Rural Development Partnership

     SEC. 611. SHORT TITLE.

       This subtitle may be cited as the ``National Rural 
     Development Partnership Act of 2001''.

     SEC. 612. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

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

     ``SEC. 377. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

       ``(a) Definitions.--In this section:
       ``(1) Agency with rural responsibilities.--The term `agency 
     with rural responsibilities' means any executive agency (as 
     defined in section 105 of title 5, United States Code) that--
       ``(A) implements Federal law targeted at rural areas, 
     including--
       ``(i) the Act of April 24, 1950 (commonly known as the 
     `Granger-Thye Act') (64 Stat. 82, chapter 9);
       ``(ii) the Intergovernmental Cooperation Act of 1968 (82 
     Stat. 1098);
       ``(iii) section 41742 of title 49, United States Code;
       ``(iv) the Rural Development Act of 1972 (86 Stat. 657);
       ``(v) the Rural Development Policy Act of 1980 (94 Stat. 
     1171);
       ``(vi) the Rural Electrification Act of 1936 (7 U.S.C. 901 
     et seq.);
       ``(vii) amendments made to section 334 of the Public Health 
     Service Act (42 U.S.C. 254g) by the Rural Health Clinics Act 
     of 1983 (97 Stat. 1345); and
       ``(viii) the Rural Housing Amendments of 1983 (97 Stat. 
     1240) and the amendments made by the Rural Housing Amendments 
     of 1983 to title V of the Housing Act of 1949 (42 U.S.C. 1471 
     et seq.); or
       ``(B) administers a program that has a significant impact 
     on rural areas, including--
       ``(i) the Appalachian Regional Commission;
       ``(ii) the Department of Agriculture;
       ``(iii) the Department of Commerce;
       ``(iv) the Department of Defense;
       ``(v) the Department of Education;
       ``(vi) the Department of Energy;
       ``(vii) the Department of Health and Human Services;
       ``(viii) the Department of Housing and Urban Development;
       ``(ix) the Department of the Interior;
       ``(x) the Department of Justice;
       ``(xi) the Department of Labor;
       ``(xii) the Department of Transportation;
       ``(xiii) the Department of the Treasury;
       ``(xiv) the Department of Veterans Affairs;
       ``(xv) the Environmental Protection Agency;
       ``(xvi) the Federal Emergency Management Administration;
       ``(xvii) the Small Business Administration;
       ``(xviii) the Social Security Administration;
       ``(xix) the Federal Reserve System;
       ``(xx) the United States Postal Service;
       ``(xxi) the Corporation for National Service;
       ``(xxii) the National Endowment for the Arts and the 
     National Endowment for the Humanities; and
       ``(xxiii) other agencies, commissions, and corporations.
       ``(2) Coordinating committee.--The term `Coordinating 
     Committee' means the National Rural Development Coordinating 
     Committee established by subsection (c).
       ``(3) Partnership.--The term `Partnership' means the 
     National Rural Development Partnership continued by 
     subsection (b).
       ``(4) State rural development council.--The term `State 
     rural development council' means a State rural development 
     council that meets the requirements of subsection (d).
       ``(b) Partnership.--
       ``(1) In general.--The Secretary shall continue the 
     National Rural Development Partnership composed of--
       ``(A) the Coordinating Committee; and
       ``(B) State rural development councils.
       ``(2) Purposes.--The purposes of the Partnership are--
       ``(A) to empower and build the capacity of States and rural 
     communities within States

[[Page S12932]]

     to design unique responses to their own special rural 
     development needs, with local determinations of progress and 
     selection of projects and activities;
       ``(B) to encourage participants to be flexible and 
     innovative in establishing new partnerships and trying fresh, 
     new approaches to rural development issues, with responses to 
     rural development that use different approaches to fit 
     different situations; and
       ``(C) to encourage all partners in the Partnership 
     (Federal, State, local, and tribal governments, the private 
     sector, and nonprofit organizations) to be fully engaged and 
     share equally in decisions.
       ``(3) Governing panel.--
       ``(A) In general.--A panel consisting of representatives of 
     the Coordinating Committee and State rural development 
     councils shall be established to lead and coordinate the 
     strategic operation, policies, and practices of the 
     Partnership.
       ``(B) Annual reports.--In conjunction with the Coordinating 
     Committee and State rural development councils, the panel 
     shall prepare and submit to Congress an annual report on the 
     activities of the Partnership.
       ``(4) Role of federal government.--The role of the Federal 
     Government in the Partnership shall be that of a partner and 
     facilitator, with Federal agencies authorized--
       ``(A) to cooperate with States to implement the 
     Partnership;
       ``(B) to provide States with the technical and 
     administrative support necessary to plan and implement 
     tailored rural development strategies to meet local needs;
       ``(C) to ensure that the head of each agency referred to in 
     subsection (a)(1)(B) designates a senior-level agency 
     official to represent the agency on the Coordinating 
     Committee and directs appropriate field staff to participate 
     fully with the State rural development council within the 
     jurisdiction of the field staff; and
       ``(D) to enter into cooperative agreements with, and to 
     provide grants and other assistance to, State rural 
     development councils.
       ``(5) Role of private and nonprofit sector organizations.--
     Private and nonprofit sector organizations are encouraged--
       ``(A) to act as full partners in the Partnership and State 
     rural development councils; and
       ``(B) to cooperate with participating government 
     organizations in developing innovative approaches to the 
     solution of rural development problems.
       ``(c) National Rural Development Coordinating Committee.--
       ``(1) Establishment.--The Secretary shall establish a 
     National Rural Development Coordinating Committee.
       ``(2) Composition.--The Coordinating Committee shall be 
     composed of--
       ``(A) 1 representative of each agency with rural 
     responsibilities that elects to participate in the 
     Coordinating Committee; and
       ``(B) representatives, approved by the Secretary, of--
       ``(i) national associations of State, regional, local, and 
     tribal governments and intergovernmental and 
     multijurisdictional agencies and organizations;
       ``(ii) national public interest groups;
       ``(iii) other national nonprofit organizations that elect 
     to participate in the activities of the Coordinating 
     Committee; and
       ``(iv) the private sector.
       ``(3) Duties.--The Coordinating Committee shall--
       ``(A) provide support for the work of the State rural 
     development councils;
       ``(B) facilitate coordination among Federal programs and 
     activities, and with State, local, tribal, and private 
     programs and activities, affecting rural development;
       ``(C) enhance the effectiveness, responsiveness, and 
     delivery of Federal programs in rural areas;
       ``(D) gather and provide to Federal authorities information 
     and input for the development and implementation of Federal 
     programs impacting rural economic and community development;
       ``(E) notwithstanding any other provision of law, review 
     and comment on policies, regulations, and proposed 
     legislation that affect or would affect rural areas;
       ``(F) provide technical assistance to State rural 
     development councils for the implementation of Federal 
     programs;
       ``(G) notwithstanding any other provision of law, develop 
     and facilitate strategies to reduce or eliminate 
     administrative and regulatory impediments; and
       ``(H) require each State receiving funds under this section 
     to submit an annual report on the use of the funds by the 
     State, including a description of strategic plans, goals, 
     performance measures, and outcomes for the State rural 
     development council of the State.
       ``(4) Election not to participate.--An agency with rural 
     responsibilities that elects not to participate in the 
     Partnership and the Coordinating Committee shall submit to 
     Congress a report that describes--
       ``(A) how the programmatic responsibilities of the Federal 
     agency that target or have an impact on rural areas are 
     better achieved without participation by the agency in the 
     Partnership; and
       ``(B) a more effective means of partnership-building and 
     collaboration to achieve the programmatic responsibilities of 
     the agency.
       ``(d) State Rural Development Councils.--
       ``(1) Establishment.--Notwithstanding chapter 63 of title 
     31, United States Code, each State may elect to participate 
     in the Partnership by entering into an agreement with the 
     Secretary to establish a State rural development council.
       ``(2) State diversity.--Each State rural development 
     council shall--
       ``(A) have a nonpartisan membership that is broad and 
     representative of the economic, social, and political 
     diversity of the State; and
       ``(B) carry out programs and activities in a manner that 
     reflects the diversity of the State.
       ``(3) Duties.--A State rural development council shall--
       ``(A) facilitate collaboration among Federal, State, local, 
     and tribal governments and the private and nonprofit sectors 
     in the planning and implementation of programs and policies 
     that target or have an impact on rural areas of the State;
       ``(B) enhance the effectiveness, responsiveness, and 
     delivery of Federal and State programs in rural areas of the 
     State;
       ``(C) gather and provide to the Coordinating Committee and 
     other appropriate organizations information on the condition 
     of rural areas in the State;
       ``(D) monitor and report on policies and programs that 
     address, or fail to address, the needs of the rural areas of 
     the State;
       ``(E) provide comments to the Coordinating Committee and 
     other appropriate organizations on policies, regulations, and 
     proposed legislation that affect or would affect the rural 
     areas of the State;
       ``(F) notwithstanding any other provision of law, in 
     conjunction with the Coordinating Committee, facilitate the 
     development of strategies to reduce or eliminate conflicting 
     or duplicative administrative or regulatory requirements of 
     Federal, State, local, and tribal governments;
       ``(G) use grant or cooperative agreement funds provided by 
     the Partnership under an agreement entered into under 
     paragraph (1) to--
       ``(i) retain an Executive Director and such support staff 
     as are necessary to facilitate and implement the directives 
     of the State rural development council; and
       ``(ii) pay expenses associated with carrying out 
     subparagraphs (A) through (F); and
       ``(H)(i) provide to the Coordinating Committee an annual 
     plan with goals and performance measures; and
       ``(ii) submit to the Coordinating Committee an annual 
     report on the progress of the State rural development council 
     in meeting the goals and measures.
       ``(4) Authorities.--A State rural development council may--
       ``(A) solicit funds to supplement and match funds provided 
     under paragraph (3)(G); and
       ``(B) engage in activities, in addition to those specified 
     in paragraph (3), appropriate to accomplish the purposes for 
     which the State rural development council is established.
       ``(5) Comments or recommendations.--A State rural 
     development council may provide comments and recommendations 
     to an agency with rural responsibilities related to the 
     activities of the State rural development council within the 
     State.
       ``(6) Actions of state rural development council members.--
     When carrying out a program or activity authorized by a State 
     rural development council or this subtitle, a member of the 
     council shall be regarded as a full-time employee of the 
     Federal Government for purposes of chapter 171 of title 28, 
     United States Code, and the Federal Advisory Committee Act (5 
     U.S.C. App.).
       ``(7) Federal participation in state rural development 
     councils.--
       ``(A) In general.--The State Director for Rural Development 
     of a State, other employees of the Department of Agriculture, 
     and employees of other Federal agencies that elect to 
     participate in the Partnership shall fully participate in the 
     governance and operations of State rural development councils 
     on an equal basis with other members of the State rural 
     development councils.
       ``(B) Conflicts.--A Federal employee who participates in a 
     State rural development council shall not participate in the 
     making of any council decision if the agency represented by 
     the Federal employee has any financial or other interest in 
     the outcome of the decision.
       ``(C) Federal guidance.--The Office of Government Ethics, 
     in consultation with the Attorney General, shall issue 
     guidance to all Federal employees that participate in State 
     rural development councils that describes specific decisions 
     that--
       ``(i) would constitute a conflict of interest for the 
     Federal employee; and
       ``(ii) from which the Federal employee must recuse himself 
     or herself.
       ``(e) Administrative Support of the Partnership.--
       ``(1) Detail of employees.--
       ``(A) In general.--In order to provide experience in 
     intergovernmental collaboration, the head of an agency with 
     rural responsibilities that elects to participate in the 
     Partnership may, and is encouraged to, detail an employee of 
     the agency with rural responsibilities to the Partnership 
     without reimbursement for a period of up to 12 months.
       ``(B) Civil service status.--The detail shall be without 
     interruption or loss of civil service status or privilege.
       ``(2) Additional support.--The Secretary shall provide for 
     any additional support staff to the Partnership as the 
     Secretary determines to be necessary to carry out the duties 
     of the Partnership.
       ``(f) Funding.--
       ``(1) Authorization of appropriations.--

[[Page S12933]]

       ``(A) In general.--There are authorized to be appropriated 
     such sums as are necessary to carry out this section.
       ``(B) Amount of financial assistance.--In providing 
     financial assistance to State rural development councils, the 
     Secretary and heads of other Federal agencies shall provide 
     assistance that, to the maximum extent practicable, is--
       ``(i) uniform in amount; and
       ``(ii) targeted to newly created State rural development 
     councils.
       ``(C) Federal share.--The Secretary shall develop a plan to 
     decrease, over time, the Federal share of the cost of the 
     core operations of State rural development councils.
       ``(2) Federal agencies.--
       ``(A) In general.--Notwithstanding any other provision of 
     law limiting the ability of an agency to provide funds to the 
     Partnership with other agencies, in order to carry out the 
     purposes described in subsection (b)(2), the Partnership 
     shall be eligible to receive grants, gifts, contributions, or 
     technical assistance from, or enter into contracts with, any 
     Federal agency.
       ``(B) Assistance.--Federal agencies are encouraged to use 
     funds made available for programs that target or have an 
     impact on rural areas to provide assistance to, and enter 
     into contracts with, the Partnership, as described in 
     subparagraph (A).
       ``(3) Contributions.--The Partnership may accept private 
     contributions.
       ``(4) Federal financial support for state rural development 
     councils.--Notwithstanding any other provision of law, a 
     Federal agency may use funds made available under paragraph 
     (1) or (2) to enter into a cooperative agreement, contract, 
     or other agreement with a State rural development council to 
     support the core operations of the State rural development 
     council, regardless of the legal form of organization of the 
     State rural development council.
       ``(g) Matching Requirements for State Rural Development 
     Councils.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     State rural development council shall provide matching funds, 
     or in-kind goods or services, to support the activities of 
     the State rural development council in an amount that is not 
     less than 33 percent of the amount of Federal funds received 
     under an agreement under subsection (d)(1).
       ``(2) Exceptions to matching requirement for certain 
     federal funds.--Paragraph (1) shall not apply to funds, 
     grants, funds provided under contracts or cooperative 
     agreements, gifts, contributions, or technical assistance 
     received by a State rural development council from a Federal 
     agency that are used--
       ``(A) to support 1 or more specific program or project 
     activities; or
       ``(B) to reimburse the State rural development council for 
     services provided to the Federal agency providing the funds, 
     grants, funds provided under contracts or cooperative 
     agreements, gifts, contributions, or technical assistance.
       ``(h) Termination.--The authority provided under this 
     section shall terminate on the date that is 5 years after the 
     date of enactment of this section.''.

        Subtitle C--Consolidated Farm and Rural Development Act

     SEC. 621. WATER OR WASTE DISPOSAL GRANTS.

       Section 306(a)(2) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(2)) is amended--
       (1) by striking ``(2) The'' and inserting the following:
       ``(2) Water, waste disposal, and wastewater facility 
     grants.--
       ``(A) Authority.--
       ``(i) In general.--The'';
       (2) by striking ``$590,000,000'' and inserting 
     ``$1,500,000,000'';
       (3) by striking ``The amount'' and inserting the following:
       ``(ii) Amount.--The amount'';
       (4) by striking ``paragraph'' and inserting 
     ``subparagraph'';
       (5) by striking ``The Secretary shall'' and inserting the 
     following:
       ``(iii) Grant rate.--The Secretary shall''; and
       (6) by adding at the end the following:
       ``(B) Revolving funds for financing water and wastewater 
     projects.--
       ``(i) In general.--The Secretary may make grants to 
     qualified private, nonprofit entities to capitalize revolving 
     funds for the purpose of providing loans to eligible 
     borrowers for--

       ``(I) predevelopment costs associated with proposed water 
     and wastewater projects or with existing water and wastewater 
     systems; and
       ``(II) short-term costs incurred for replacement equipment, 
     small-scale extension services, or other small capital 
     projects that are not part of the regular operations and 
     maintenance activities of existing water and wastewater 
     systems.

       ``(ii) Eligible borrowers.--To be eligible to obtain a loan 
     from a revolving fund under clause (i), a borrower shall be 
     eligible to obtain a loan, loan guarantee, or grant under 
     paragraph (1) or this paragraph.
       ``(iii) Maximum amount of loans.--The amount of a loan made 
     to an eligible borrower under this subparagraph shall not 
     exceed--

       ``(I) $100,000 for costs described in clause (i)(I); and
       ``(II) $100,000 for costs described in clause (i)(II).

       ``(iv) Term.--The term of a loan made to an eligible 
     borrower under this subparagraph shall not exceed 10 years.
       ``(v) Administration.--The Secretary shall limit the amount 
     of grant funds that may be used by a grant recipient for 
     administrative costs incurred under this subparagraph.
       ``(vi) Authorization of appropriations.--There is 
     authorized to be appropriated to carry out this subparagraph 
     $30,000,000 for each of fiscal years 2002 through 2006.''.

     SEC. 622. RURAL BUSINESS OPPORTUNITY GRANTS.

       Section 306(a)(11)(D) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(11)(D)) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 623. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.

       Section 306(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)) is amended by added at the 
     end the following:
       ``(22) Rural water and wastewater circuit rider program.--
       ``(A) In general.--The Secretary shall establish a national 
     rural water and wastewater circuit rider program that is 
     based on the rural water circuit rider program of the 
     National Rural Water Association that (as of the date of 
     enactment of this paragraph) receives funding from the 
     Secretary, acting through the Rural Utilities Service.
       ``(B) Relationship to existing program.--The program 
     established under subparagraph (A) shall not affect the 
     authority of the Secretary to carry out the circuit rider 
     program for which funds are made available under the heading 
     ``Rural Community Advancement Program'' of title III of the 
     Agriculture, Rural Development, Food and Drug Administration, 
     and Related Agencies Appropriations Act, 2002.
       ``(C) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this paragraph $15,000,000 
     for each of fiscal years 2003 through 2006.''.

     SEC. 624. MULTIJURISDICTIONAL REGIONAL PLANNING 
                   ORGANIZATIONS.

       Section 306(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)) (as amended by section 
     623) is amended by added at the end the following:
       ``(23) Multijurisdictional regional planning 
     organizations.--
       ``(A) Grants.--The Secretary shall provide grants to 
     multijurisdictional regional planning and development 
     organizations to pay the Federal share of the cost of 
     providing assistance to local governments to improve the 
     infrastructure, services, and business development 
     capabilities of local governments and local economic 
     development organizations.
       ``(B) Priority.--In determining which organizations will 
     receive a grant under this paragraph, the Secretary shall 
     provide a priority to an organization that--
       ``(i) serves a rural area that, during the most recent 5-
     year period--

       ``(I) had a net out-migration of inhabitants, or other 
     population loss, from the rural area that equals or exceeds 5 
     percent of the population of the rural area; or
       ``(II) had a median household income that is less than the 
     nonmetropolitan median household income of the applicable 
     State; and

       ``(ii) has a history of providing substantive assistance to 
     local governments and economic development organizations.
       ``(C) Federal share.--A grant provided under this paragraph 
     shall be for not more than 75 percent of the cost of 
     providing assistance described in subparagraph (A).
       ``(D) Maximum amount of grants.--The amount of a grant 
     provided to an organization under this paragraph shall not 
     exceed $100,000.
       ``(E) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this paragraph $30,000,000 
     for each of fiscal years 2003 through 2006.''.

     SEC. 625. CERTIFIED NONPROFIT ORGANIZATIONS SHARING 
                   EXPERTISE.

       Section 306(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)) (as amended by section 
     624) is amended by added at the end the following:
       ``(24) Certified nonprofit organizations sharing 
     expertise.--
       ``(A) Certified organizations.--
       ``(i) In general.--To be certified by the Secretary to 
     provide technical assistance in 1 or more rural development 
     fields, an organization shall--

       ``(I) be a nonprofit organization (which may include an 
     institution of higher education) with experience in providing 
     technical assistance in the applicable rural development 
     field;
       ``(II) develop a plan, approved by the Secretary, 
     describing the manner in which grant funds will be used and 
     the source of non-Federal funds; and
       ``(III) meet such other criteria as the Secretary may 
     establish, based on the needs of eligible entities for the 
     technical assistance.

       ``(iii) List.--The Secretary shall make available to the 
     public a list of certified organizations in each area that 
     the Secretary determines have substantial experience in 
     providing the assistance described in subparagraph (B).
       ``(B) Grants.--The Secretary may provide grants to 
     certified organizations to pay for costs of providing 
     technical assistance to local governments and nonprofit 
     entities to improve the infrastructure, services, and 
     business development capabilities of local governments and 
     local economic development organizations.
       ``(C) Authorization of appropriations.--There is authorized 
     to be appropriated to

[[Page S12934]]

     carry out this paragraph $20,000,000 for each of fiscal years 
     2003 through 2006.''.

     SEC. 626. LOAN GUARANTEES FOR CERTAIN RURAL DEVELOPMENT 
                   LOANS.

       (a) Loan Guarantees for Water, Wastewater, and Essential 
     Community Facilities Loans.--Section 306(a) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1925(a)) (as amended by section 625) is amended by adding at 
     the end the following:
       ``(25) Loan guarantees for water, wastewater, and essential 
     community facilities loans.--
       ``(A) In general.--The Secretary may guarantee under this 
     title a loan made to finance a community facility or water or 
     waste facility project, including a loan financed by the net 
     proceeds of a bond described in section 144(a)(12)(B)(ii) of 
     the Internal Revenue Code of 1986.
       ``(B) Requirements.--To be eligible for a loan guarantee 
     under subparagraph (A), an individual or entity offering to 
     purchase the loan must demonstrate to the Secretary that the 
     person has--
       ``(i) the capabilities and resources necessary to service 
     the loan in a manner that ensures the continued performance 
     of the loan, as determined by the Secretary; and
       ``(ii) the ability to generate capital to provide borrowers 
     of the loan with the additional credit necessary to properly 
     service the loan.''.
       (b) Loan Guarantees for Certain Loans.--Section 310B of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 1932) 
     is amended by adding at the end the following:
       ``(h) Loan Guarantee for Certain Loans.--The Secretary may 
     guarantee loans made in subsection (a) to finance the 
     issuance of bonds for the projects described in section 
     306(a)(25).''.

     SEC. 627. RURAL FIREFIGHTERS AND EMERGENCY PERSONNEL GRANT 
                   PROGRAM.

       Section 306(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)) (as amended by section 
     626(a)) is amended by adding at the end the following:
       ``(26) Rural firefighters and emergency medical personnel 
     grant program.--
       ``(A) In general.--The Secretary may make grants to units 
     of general local government and Indian tribes (as defined in 
     section 4 of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450b)) to pay the cost of training 
     firefighters and emergency medical personnel in firefighting, 
     emergency medical practices, and responding to hazardous 
     materials and bioagents in rural areas.
       ``(B) Use of funds.--
       ``(i) Scholarships.--

       ``(I) In general.--Not less than 60 percent of the amounts 
     made available for competitively awarded grants under this 
     paragraph shall be used to provide grants to fund partial 
     scholarships for training of individuals at training centers 
     approved by the Secretary.
       ``(II) Priority.--In awarding grants under this clause, the 
     Secretary shall give priority to grant applicants with 
     relatively low transportation costs considering the location 
     of the grant applicant and the proposed location of the 
     training.

       ``(ii) Grants for training centers.--

       ``(I) Existing centers.--

       ``(aa) In general.--A grant under subparagraph (A) may be 
     used to provide financial assistance to State and regional 
     centers that provide training for firefighters and emergency 
     medical personnel for improvements to the training facility, 
     equipment, curricula, and personnel.
       ``(bb) Limitation.--Not more than $2,000,000 shall be 
     provided to any single training center for any fiscal year 
     under this subclause.

       ``(II) Establishment of new centers.--

       ``(aa) In general.--A grant under subparagraph (A) may be 
     used to provide the Federal share of the costs of 
     establishing a regional training center for firefighters and 
     emergency medical personnel.
       ``(bb) Federal share.--The amount of a grant under this 
     subclause for a training center shall not exceed 50 percent 
     of the cost of establishing the training center.
       ``(C) Funding.--
       ``(i) In general.--Out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Secretary of Agriculture to carry out this 
     paragraph--

       ``(I) not later than 30 days after the date of enactment of 
     this Act, $10,000,000; and
       ``(II) on October 1, 2002, and each October 1 thereafter 
     through October 1, 2005, $30,000,000.

       ``(ii) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under clause (i), without 
     further appropriation.
       ``(iii) Availability of funds.--Funds transferred under 
     clause (i) shall remain available until expended.''.

     SEC. 628. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM.

       Section 306A(i) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926a(i)) is amended by striking 
     ``2002'' and inserting ``2006''.

     SEC. 629. WATER AND WASTE FACILITY GRANTS FOR NATIVE AMERICAN 
                   TRIBES.

       Section 306C of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1926c(e)) is amended by striking subsection (e) 
     and inserting the following:
       ``(e) Authorization of Appropriations.--
       ``(1) In general.--Subject to paragraph (2), there is 
     authorized to be appropriated--
       ``(A) for grants under this section, $30,000,000 for each 
     fiscal year;
       ``(B) for loans under this section, $30,000,000 for each 
     fiscal year; and
       ``(C) for grants under this section to benefit Indian 
     tribes (as defined in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b)), 
     $20,000,000 for each fiscal year.
       ``(2) Exception.--An entity eligible to receive funding 
     through a grant made under section 306D shall not be eligible 
     for a grant from funds made available under subparagraph 
     (1)(C).''.

     SEC. 630. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN 
                   ALASKA.

       Section 306D(d)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926d(d)(1)) is amended by striking 
     ``and 2002'' and inserting ``through 2006''.

     SEC. 631. RURAL COOPERATIVE DEVELOPMENT GRANTS.

       Section 310B(e)(9) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1932(e)(9)) is amended by striking 
     ``2002'' and inserting ``2006''.

     SEC. 632. GRANTS TO BROADCASTING SYSTEMS.

       Section 310B(f) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1932(f)) is amended by adding at 
     the end the following:
       ``(3) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $5,000,000 
     for each of fiscal years 2002 through 2006.''.

     SEC. 633. BUSINESS AND INDUSTRY LOAN MODIFICATIONS.

       Section 3l0B of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1932) is amended by striking subsection (g) and 
     inserting the following:
       ``(g) Business and Industry Direct and Guaranteed Loans.--
       ``(1) Loan guarantees for the purchase of cooperative 
     stock.--
       ``(A) New and expanding cooperatives.--
       ``(i) In general.--The Secretary may guarantee a loan under 
     subsection (a) to farmers, ranchers, or cooperatives for the 
     purpose of purchasing start-up capital stock for the 
     expansion or creation of a cooperative venture that will 
     process agricultural commodities or otherwise process value-
     added agricultural products.
       ``(ii) Financial condition.--In determining the 
     appropriateness of a loan guarantee under this subparagraph, 
     the Secretary--

       ``(I) shall fully review the feasibility and other relevant 
     aspects of the cooperative venture to be established;
       ``(II) may not require a review of the financial condition 
     or statements of any individual farmer or rancher involved in 
     the cooperative, other than the applicant for a guarantee 
     under this subparagraph; and
       ``(III) shall base any guarantee, to the maximum extent 
     practicable, on the merits of the cooperative venture to be 
     established.

       ``(iii) Collateral.--As a condition of making a loan 
     guarantee under this subparagraph, the Secretary may not 
     require additional collateral by a farmer or rancher, other 
     than stock purchased or issued pursuant to the loan and 
     guarantee of the loan.
       ``(iv) Eligibility.--To be eligible for a loan guarantee 
     under this subparagraph, a farmer or rancher must produce the 
     agricultural commodity that will be processed by the 
     cooperative.
       ``(v) Processing contracts during initial period.--The 
     cooperative, for which a farmer or rancher receives a 
     guarantee to purchase stock under this subparagraph, may 
     contract for services to process agricultural commodities, or 
     otherwise process value-added agricultural products, during 
     the 5-year period beginning on the date of the startup of the 
     cooperative in order to provide adequate time for the 
     planning and construction of the processing facility of the 
     cooperative.
       ``(B) Existing cooperatives.--The Secretary may guarantee a 
     loan under subsection (a) to a farmer or rancher to join a 
     cooperative in order to sell the agricultural commodities or 
     products produced by the farmer or rancher.
       ``(C) Financial information.--Financial information 
     required by the Secretary from a farmer or rancher as a 
     condition of making a loan guarantee under this paragraph 
     shall be provided in the manner generally required by 
     commercial agricultural lenders in the area.
       ``(2) Loans to cooperatives.--
       ``(A) In general.--The Secretary may make or guarantee a 
     loan under subsection (a) to a cooperative that is 
     headquartered in a metropolitan area if the loan is used for 
     a project or venture described in subsection (a) that is 
     located in a rural area.
       ``(B) Refinancing.--A cooperative organization owned by 
     farmers or ranchers that is eligible for a business and 
     industry loan under made or guaranteed under subsection (a) 
     shall be eligible to refinance an existing loan with a lender 
     if--
       ``(i) the cooperative organization--

       ``(I) is current and performing with respect to the 
     existing loan; and
       ``(II) is not, and has not been, in default with respect to 
     the existing loan; and

       ``(ii) there is adequate security or full collateral for 
     the refinanced loan.
       ``(3) Business and industry loan appraisals.--The Secretary 
     may require that any appraisal made in connection with a 
     business and industry loan made or guaranteed under 
     subsection (a) be conducted by a specialized

[[Page S12935]]

     appraiser that uses standards that are similar to standards 
     used for similar purposes in the private sector, as 
     determined by the Secretary.
       ``(4) Fees.--The Secretary may assess a 1-time fee for any 
     loan guaranteed under subsection (a) in an amount that does 
     not exceed 2 percent of the guaranteed principal portion of 
     the loan.''.

     SEC. 634. VALUE-ADDED INTERMEDIARY RELENDING PROGRAM.

       Section 310B of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1932) (as amended by section 626(b)) is amended 
     by adding at the end the following:
       ``(i) Value-Added Intermediary Relending Program.--
       ``(1) In general.--In accordance with this subsection, the 
     Secretary shall make loans under the terms and conditions of 
     the intermediary relending program established under section 
     1323(b)(2)(C) of the Food Security Act of 1985 (7 U.S.C. 1932 
     note; Public Law 99-198).
       ``(2) Loans.--Using funds made available to carry out this 
     subsection, the Secretary shall make loans to eligible 
     intermediaries to make loans to ultimate recipients, under 
     the terms and conditions of the intermediary relending 
     program, for projects to establish, enlarge, and operate 
     enterprises that add value to agricultural commodities and 
     products of agricultural commodities.
       ``(3) Eligible intermediaries.--Intermediaries that are 
     eligible to receive loans under paragraph (2) shall include 
     State agencies.
       ``(4) Preference for bioenergy projects.--In making loans 
     using loan funds made available under paragraph (2), an 
     eligible intermediary shall give preference to bioenergy 
     projects in accordance with regulations promulgated by the 
     Secretary.
       ``(5) Composition of capital.--The capital for a project 
     carried out by an ultimate recipient and assisted with loan 
     funds made available under paragraph (2) shall be comprised 
     of--
       ``(A) not more than 15 percent of the total cost of a 
     project; and
       ``(B) not less than 50 percent of the equity funds provided 
     by agricultural producers.
       ``(6) Loan conditions.--
       ``(A) Terms of loans.--A loan made to an intermediary using 
     loan funds made available under paragraph (2) shall have a 
     term of not to exceed 30 years.
       ``(B) Interest.--The interest rate on such a loan shall 
     be--
       ``(i) in the case of each of the first 2 years of the loan 
     period, 0 percent; and
       ``(ii) in the case of each of the remaining years of the 
     loan period, 2 percent.
       ``(7) Limitations on amount of loan funds provided.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     an intermediary or ultimate recipient shall be eligible to 
     receive not more than $2,000,000 of the loan funds made 
     available under paragraph (2).
       ``(B) State agencies.--Subparagraph (A) shall not apply in 
     the case of a State agency with respect to loan funds 
     provided to the State agency as an intermediary.
       ``(8) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $15,000,000 
     for each of fiscal years 2003 through 2006.''.

     SEC. 635. USE OF RURAL DEVELOPMENT LOANS AND GRANTS FOR OTHER 
                   PURPOSES.

       Subtitle A of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1921 et seq.) (as amended by section 508) is 
     amended by adding at the end the following:

     ``SEC. 310G. USE OF RURAL DEVELOPMENT LOANS AND GRANTS FOR 
                   OTHER PURPOSES.

       ``If, after making a loan or a grant described in section 
     381E(d), the Secretary determines that the circumstances 
     under which the loan or grant was made have sufficiently 
     changed to make the project or activity for which the loan or 
     grant was made available no longer appropriate, the Secretary 
     may allow the loan borrower or grant recipient to use 
     property (real and personal) purchased or improved with the 
     loan or grant funds, or proceeds from the sale of property 
     (real and personal) purchased with such funds, for another 
     project or activity that (as determined by the Secretary)--
       ``(1) will be carried out in the same area as the original 
     project or activity;
       ``(2) meets the criteria for a loan or a grant described in 
     section 381E(d); and
       ``(3) satisfies such additional requirements as are 
     established by the Secretary.''.

     SEC. 636. SIMPLIFIED APPLICATION FORMS FOR LOAN GUARANTEES.

       Section 333A of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1983a) (as amended by section 526) is amended 
     by striking subsection (g) and inserting the following:
       ``(g) Simplified Application Forms for Loan Guarantees.--
       ``(1) In general.--The Secretary shall provide to lenders a 
     short, simplified application form for guarantees under this 
     title of--
       ``(A) farmer program loans the principal amount of which is 
     $100,000 or less; and
       ``(B) business and industry guaranteed loans under section 
     310B(a)(1) the principal amount of which is--
       ``(i) in the case of a loan guarantee made during fiscal 
     year 2002 or 2003, $400,000 or less; and
       ``(ii) in the case of a loan guarantee made during any 
     subsequent fiscal year--

       ``(I) $400,000 or less; or
       ``(II) if the Secretary determines that there is not a 
     significant increased risk of a default on the loan, $600,000 
     or less.

       ``(2) Water and waste disposal grants and loans.--The 
     Secretary shall develop an application process that 
     accelerates, to the maximum extent practicable, the 
     processing of applications for water and waste disposal 
     grants or direct or guaranteed loans under paragraph (1) or 
     (2) of section 306(a) the grant award amount or principal 
     loan amount, respectively, of which is $300,000 or less.
       ``(3) Administration.--In developing an application under 
     this subsection, the Secretary shall--
       ``(A) consult with commercial and cooperative lenders; and
       ``(B) ensure that--
       ``(i) the form can be completed manually or electronically, 
     at the option of the lender;
       ``(ii) the form minimizes the documentation required to 
     accompany the form;
       ``(iii) the cost of completing and processing the form is 
     minimal; and
       ``(iv) the form can be completed and processed in an 
     expeditious manner.''.

     SEC. 637. DEFINITION OF RURAL AND RURAL AREA.

       (a) In General.--Section 343(a) of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 1991(a)) is amended by 
     adding at the end the following:
       ``(13) Rural and rural area.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, the terms `rural' and `rural area' mean a city, 
     town, or unincorporated area that has a population of 50,000 
     inhabitants or less, other than an urbanized area immediately 
     adjacent to a city, town, or unincorporated area that has a 
     population in excess of 50,000 inhabitants.
       ``(B) Water and waste disposal grants and direct and 
     guaranteed loans.--For the purpose of water and waste 
     disposal grants and direct and guaranteed loans provided 
     under paragraphs (1) and (2) of section 306(a), the terms 
     `rural' and `rural area' mean a city, town, or unincorporated 
     area that has a population of no more than 10,000 
     inhabitants.
       ``(C) Community facility loans and grants.--For the purpose 
     of community facility direct and guaranteed loans and grants 
     under paragraphs (1), (19), (20), and (21) of section 306(a), 
     the terms `rural' and `rural area' mean a city, town, or 
     unincorporated area that has a population of no more than 
     50,000 inhabitants.
       ``(D) Business and industry direct and guaranteed loans.--
     For the purpose of business and industry direct and 
     guaranteed loans under section 310B(a)(1), the terms `rural' 
     and `rural area' mean any area other than a city or town that 
     has a population of greater than 50,000 inhabitants and the 
     immediately adjacent urbanized area of such city or town.
       ``(E) Multijurisdictional regional planning organizations; 
     national rural development partnership.--In sections 
     306(a)(23) and 377, the term `rural area' means--
       ``(i) all the territory of a State that is not within the 
     boundary of any standard metropolitan statistical area; and
       ``(ii) all territory within any standard metropolitan 
     statistical area within a census tract having a population 
     density of less than 20 persons per square mile, as 
     determined by the Secretary according to the most recent 
     census of the United States as of any date.
       ``(F) Rural entrepreneurs and microenterprise assistance 
     program; National rural cooperative and business equity 
     fund.--In section 378 and subtitle G, the term `rural area' 
     means an area that is located--
       ``(i) outside a standard metropolitan statistical area; or
       ``(ii) within a community that has a population of 50,000 
     inhabitants or less.''.
       (b) Conforming Amendments.--
       (1) Section 306(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)) is amended by striking 
     paragraph (7).
       (2) Section 381A of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2009) is amended--
       (A) by striking paragraph (1); and
       (B) by redesignating paragraphs (2) and (3) as paragraphs 
     (1) and (2), respectively.

     SEC. 638. RURAL ENTREPRENEURS AND MICROENTERPRISE ASSISTANCE 
                   PROGRAM.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act (as amended by section 612) is amended by adding at the 
     end the following:

     ``SEC. 378. RURAL ENTREPRENEURS AND MICROENTERPRISE 
                   ASSISTANCE PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Economically disadvantaged microentrepreneur.--The 
     term `economically disadvantaged microentrepreneur' means an 
     owner, majority owner, or developer of a microenterprise that 
     has the ability to compete in the private sector but has been 
     impaired due to diminished capital and credit opportunities, 
     as compared to other microentrepreneurs in the industry.
       ``(2) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(3) Intermediary.--The term `intermediary' means a 
     private, nonprofit entity that provides assistance--

[[Page S12936]]

       ``(A) to a microenterprise development organization; or
       ``(B) for a microenterprise development program.
       ``(4) Low-income individual.--The term `low-income 
     individual' means an individual with an income (adjusted for 
     family size) of not more than the greater of--
       ``(A) 80 percent of median income of an area; or
       ``(B) 80 percent of the statewide nonmetropolitan area 
     median income.
       ``(5) Microcredit.--The term `microcredit' means a business 
     loan or loan guarantee of not more than $35,000 provided to a 
     rural entrepreneur.
       ``(6) Microenterpise.--The term `microenterprise' means a 
     sole proprietorship, joint enterprise, limited liability 
     company, partnership, corporation, or cooperative that--
       ``(A) has 5 or fewer employees; and
       ``(B) is unable to obtain sufficient credit, equity, or 
     banking services elsewhere, as determined by the Secretary.
       ``(7) Microenterprise development organization.--
       ``(A) In general.--The term `microenterprise development 
     organization' means a nonprofit entity that provides training 
     and technical assistance to rural entrepreneurs and access to 
     capital or another service described in subsection (c) to 
     rural entrepreneurs.
       ``(B) Inclusions.--The term `microenterprise development 
     organization' includes an organization described in 
     subparagraph (A) with a demonstrated record of delivering 
     services to economically disadvantaged microentrepreneurs.
       ``(8) Microenterprise development program.--The term 
     `microenterprise development organization' means a program 
     administered by a organization serving a rural area.
       ``(9) Microentrepreneur.--The term `microentrepreneur' 
     means the owner, operator, or developer of a microenterprise.
       ``(10) Program.--The term `program' means the rural 
     entrepreneur and microenterprise program established under 
     subsection (b)(1).
       ``(11) Qualified organization.--The term `qualified 
     organization' means--
       ``(A) a microenterprise development organization or 
     microenterprise development program that has a demonstrated 
     record of delivering microenterprise services to rural 
     entrepreneurs, as demonstrated by the development of an 
     effective plan of action and the possession of necessary 
     resources to deliver microenterprise services to rural 
     entrepreneurs effectively, as determined by the Secretary;
       ``(B) an intermediary that has a demonstrated record of 
     delivery assistance to microenterprise development 
     organizations or microenterprise development programs;
       ``(C) a microenterprise development organization or 
     microenterprise development program that--
       ``(i) serves rural entrepreneurs; and
       ``(ii) enters into an agreement with a local community, in 
     conjunction with a State or local government or Indian tribe, 
     to provide assistance described in subsection (c);
       ``(D) an Indian tribe, the tribal government of which 
     certifies to the Secretary that no microenterprise 
     development organization or microenterprise development 
     program exists under the jurisdiction of the Indian tribe; or
       ``(E) a group of 2 or more organizations or Indian tribes 
     described in subparagraph (A), (B), (C), or (D) that agree to 
     act jointly as a qualified organization under this section.
       ``(12) Rural capacity building service.--The term `rural 
     capacity building service' means a service provided to an 
     organization that--
       ``(A) is, or is in the process of becoming, a 
     microenterprise development organization or microenterprise 
     development program; and
       ``(B) serves rural areas for the purpose of enhancing the 
     ability of the organization to provide training, technical 
     assistance, and other related services to rural 
     entrepreneurs.
       ``(13) Rural entrepreneur.--The term `rural entrepreneur' 
     means a microentrepreneur, or prospective microentrepreneur--
       ``(A) the principal place of business of which is in a 
     rural area; and
       ``(B) that is unable to obtain sufficient training, 
     technical assistance, or microcredit elsewhere, as determined 
     by the Secretary.
       ``(14) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture, acting through the Rural Business-Cooperative 
     Service.
       ``(15) Training and technical assistance.--
       ``(A) In general.--The term `training and technical 
     assistance' means assistance provided to rural entrepreneurs 
     to develop the skills the rural entrepreneurs need to plan, 
     market, and manage their own business.
       ``(B) Inclusions.--The term `training and technical 
     assistance' includes assistance provided for the purpose of--
       ``(i) enhancing business planning, marketing, management, 
     or financial management skills; and
       ``(ii) obtaining microcredit.
       ``(16) Tribal government.--The term `tribal government' 
     means the governing body of an Indian tribe.
       ``(b) Establishment.--
       ``(1) In general.--From amounts made available under 
     subsection (h), the Secretary shall establish a rural 
     entrepreneur and microenterprise program.
       ``(2) Purpose.--The purpose of the program shall be to 
     provide low- and moderate-income individuals with--
       ``(A) the skills necessary to establish new small 
     businesses in rural areas; and
       ``(B) continuing technical assistance as the individuals 
     begin operating the small businesses.
       ``(c) Assistance.--
       ``(1) In general.--The Secretary may make a grant under 
     this section to a qualified organization to--
       ``(A) provide training, technical assistance, or 
     microcredit to a rural entrepreneur;
       ``(B) provide training, operational support, or a rural 
     capacity building service to a qualified organization to 
     assist the qualified organization in developing 
     microenterprise training, technical assistance, and other 
     related services;
       ``(C) assist in researching and developing the best 
     practices in delivering training, technical assistance, and 
     microcredit to rural entrepreneurs; and
       ``(D) to carry out such other projects and activities as 
     the Secretary determines are consistent with the purposes of 
     this section.
       ``(2) Allocation.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), of 
     the amount of funds made available for a fiscal year to make 
     grants under this section, the Secretary shall ensure that--
       ``(i) not less than 75 percent of funds are used to carry 
     out activities described in paragraph (1)(A); and
       ``(ii) not more than 25 percent of the funds are used to 
     carry out activities described in subparagraphs (B) through 
     (D) of paragraph (1).
       ``(B) Limitation on grant amount.--No single qualified 
     organization may receive more than 10 percent of the total 
     funds that are made available for a fiscal year to carry out 
     this section.
       ``(C) Administrative expenses.--Not more than 15 percent of 
     assistance received by a qualified organization for a fiscal 
     year under this section may be used for administrative 
     expenses.
       ``(d) Subgrants.--Subject to such regulations as the 
     Secretary may promulgate, a qualified organization that 
     receives a grant under this section may use the grant to 
     provide assistance to other qualified organizations, such as 
     small or emerging qualified organizations.
       ``(e) Low-Income Individuals.--The Secretary shall ensure 
     that not less than 50 percent of the grants made under this 
     section is used to benefit low-income individuals identified 
     by the Secretary, including individuals residing on Indian 
     reservations.
       ``(f) Diversity.--In making grants under this section, the 
     Secretary shall ensure, to the maximum extent practicable, 
     that grant recipients include qualified organizations--
       ``(1) of varying sizes; and
       ``(2) that serve racially and ethnically diverse 
     populations.
       ``(g) Cost Sharing.--
       ``(1) Federal share.--The Federal share of the cost of a 
     project carried out using funds from a grant under this 
     section shall be 75 percent.
       ``(2) Form of non-federal share.--The non-Federal share of 
     the cost of a project described in paragraph (1) may be 
     provided--
       ``(A) in cash (including through fees, grants (including 
     community development block grants), and gifts); or
       ``(B) in kind.
       ``(h) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this Act, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     Agriculture to carry out this section $10,000,000, to remain 
     available until expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.''.

     SEC. 639. RURAL SENIORS.

       (a) Interagency Coordinating Committee for Rural Seniors.--
     Subtitle D of the Consolidated Farm and Rural Development Act 
     (7 U.S.C. 1981 et seq.) (as amended by section 638) is 
     amended by adding at the end the following:

     ``SEC. 379. INTERAGENCY COORDINATING COMMITTEE FOR RURAL 
                   SENIORS.

       ``(a) In General.--The Secretary shall establish an 
     interagency coordinating committee (referred to in this 
     section as the `Committee') to examine the special problems 
     of rural seniors.
       ``(b) Membership.--The Committee shall be comprised of--
       ``(1) the Undersecretary of Agriculture for Rural 
     Development, who shall serve as chairperson of the Committee;
       ``(2) 2 representatives of the Secretary of Health and 
     Human Services, of whom--
       ``(A) 1 shall have expertise in the field of health care; 
     and
       ``(B) 1 shall have expertise in the field of programs under 
     the Older Americans Act of 1965 (42 U.S.C. 3001 et seq.);
       ``(3) 1 representative of the Secretary of Housing and 
     Urban Development;
       ``(4) 1 representative of the Secretary of Transportation; 
     and
       ``(5) representatives of such other Federal agencies as the 
     Secretary may designate.
       ``(c) Duties.--The Committee shall--
       ``(1) study health care, transportation, technology, 
     housing, accessibility, and other areas of need of rural 
     seniors;

[[Page S12937]]

       ``(2) identify successful examples of senior care programs 
     in rural communities that could serve as models for other 
     rural communities; and
       ``(3) not later than 1 year after the date of enactment of 
     this section, submit to the Secretary, the Committee on 
     Agriculture of the House of Representatives, and the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate recommendations for legislative and administrative 
     action.
       ``(d) Funding.--Funds available to any Federal agency may 
     be used to carry out interagency activities under this 
     section.''.
       (b) Grants for Programs for Rural Seniors.--Subtitle D of 
     the Consolidated Farm and Rural Development Act (7 U.S.C. 
     1981 et seq.) (as amended by subsection (a)) is amended by 
     adding at the end the following:

     ``SEC. 379A. GRANTS FOR PROGRAMS FOR RURAL SENIORS.

       ``(a) In General.--The Secretary shall make grants to 
     nonprofit organizations (including cooperatives) to pay the 
     Federal share of the cost of programs that--
       ``(1) provide facilities, equipment, and technology for 
     seniors in a rural area; and
       ``(2) may be replicated in other rural areas.
       ``(b) Federal Share.--The Federal share of a grant under 
     this section shall be not more than 20 percent of the cost of 
     a program described in subsection (a).
       ``(c) Leveraging.--In selecting programs to receive grants 
     under section, the Secretary shall give priority to proposals 
     that leverage resources to meet multiple rural community 
     goals.
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $25,000,000 for 
     each of fiscal years 2003 through 2006.''.
       (c) Reservation of Community Facilities Program Funds for 
     Senior Facilities.--Section 306(a)(19) of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 1926(a)(19)) is 
     amended by adding at the end the following:
       ``(C) Reservation of funds for senior facilities.--
       ``(i) In general.--For each fiscal year, not less than 12.5 
     percent of the funds made available to carry out this 
     paragraph shall be reserved for grants to pay the Federal 
     share of the cost of developing and constructing senior 
     facilities, or carrying out other projects that mainly 
     benefit seniors, in rural areas.
       ``(ii) Release.--Funds reserved under clause (i) for a 
     fiscal year shall be reserved only until April 1 of the 
     fiscal year.''.

     SEC. 640. CHILDREN'S DAY CARE FACILITIES.

       Section 306(a)(19) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(19)) (as amended by section 
     639(c)) is amended by adding at the end the following:
       ``(D) Reservation of funds for children's day care 
     facilities.--
       ``(i) In general.--For each fiscal year, not less than 10 
     percent of the funds made available to carry out this 
     paragraph shall be reserved for grants to pay the Federal 
     share of the cost of developing and constructing day care 
     facilities for children in rural areas.
       ``(ii) Release.--Funds reserved under clause (i) for a 
     fiscal year shall be reserved only until April 1 of the 
     fiscal year.''.

     SEC. 641. RURAL TELEWORK.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1981 et seq.) (as amended by section 639(b)) is 
     amended by adding at the end the following:

     ``SEC. 379B. RURAL TELEWORK.

       ``(a) Definitions.--In this section:
       ``(1) Eligible organization.--The term `eligible 
     organization' means a nonprofit entity, an educational 
     institution, an Indian tribe (as defined in section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b)), or any other organization that meets the 
     requirements of this section and such other requirements as 
     are established by the Secretary.
       ``(2) Institute.--The term `institute' means a regional 
     rural telework institute established using a grant under 
     subsection (b).
       ``(3) Telework.--The term `telework' means the use of 
     telecommunications to perform work functions at a rural work 
     center located outside the place of business of an employer.
       ``(b) Rural Telework Institute.--
       ``(1) In general.--The Secretary shall make a grant to an 
     eligible organization to pay the Federal share of the cost of 
     establishing and operating a national rural telework 
     institute to carry out projects described in paragraph (4).
       ``(2) Eligible organizations.--The Secretary shall 
     establish criteria that an organization shall meet to be 
     eligible to receive a grant under this subsection.
       ``(3) Deadline for initial grant.--Not later than 1 year 
     after the date on which funds are first made available to 
     carry out this subsection, the Secretary shall make the 
     initial grant under this subsection.
       ``(4) Projects.--The institute shall use grant funds 
     obtained under this subsection to carry out a 5-year 
     project--
       ``(A) to serve as a clearinghouse for telework research and 
     development;
       ``(B) to conduct outreach to rural communities and rural 
     workers;
       ``(C) to develop and share best practices in rural telework 
     throughout the United States;
       ``(D) to develop innovative, market-driven telework 
     projects and joint ventures with the private sector that 
     employ workers in rural areas in jobs that promote economic 
     self-sufficiency;
       ``(E) to share information about the design and 
     implementation of telework arrangements;
       ``(F) to support private sector businesses that are 
     transitioning to telework;
       ``(G) to support and assist telework projects and 
     individuals at the State and local level; and
       ``(H) to perform such other functions as the Secretary 
     considers appropriate.
       ``(5) Non-federal share.--
       ``(A) In general.--As a condition of receiving a grant 
     under this subsection, an eligible organization shall agree 
     to obtain, after the application of the eligible organization 
     has been approved and notice of award has been issued, 
     contributions from non-Federal sources that are equal to--
       ``(i) during each of the first, second, and third years of 
     a project, 50 percent of the amount of the grant; and
       ``(ii) during each of the fourth and fifth years of the 
     project, 100 percent of the amount of the grant.
       ``(B) Indian tribes.--Notwithstanding subparagraph (A), an 
     Indian tribe may use Federal funds made available to the 
     tribe for self-governance to pay the non-Federal 
     contributions required under subparagraph (A).
       ``(C) Form.--The non-Federal contributions required under 
     subparagraph (A) may be in the form of in-kind contributions, 
     including office equipment, office space, and services.
       ``(c) Telework Grants.--
       ``(1) In general.--Subject to paragraphs (2) through (5), 
     the Secretary shall make grants to eligible entities to pay 
     the Federal share of the cost of--
       ``(A) obtaining equipment and facilities to establish or 
     expand telework locations in rural areas; and
       ``(B) operating telework locations in rural areas.
       ``(2) Eligible organizations.--To be eligible to receive a 
     grant under this subsection, an eligible entity shall--
       ``(A) be a nonprofit organization or educational 
     institution in a rural area; and
       ``(B) submit to, and receive the approval of, the Secretary 
     of an application for the grant that demonstrates that the 
     eligible entity has adequate resources and capabilities to 
     establish or expand a telework location in a rural area.
       ``(3) Non-federal share.--
       ``(A) In general.--As a condition of receiving a grant 
     under this subsection, an eligible organization shall agree 
     to obtain, after the application of the eligible organization 
     has been approved and notice of award has been issued, 
     contributions from non-Federal sources that are equal to 50 
     percent of the amount of the grant.
       ``(B) Indian tribes.--Notwithstanding subparagraph (A), an 
     Indian tribe may use Federal funds made available to the 
     tribe for self-governance to pay the non-Federal 
     contributions required under subparagraph (A).
       ``(C) Sources.--The non-Federal contributions required 
     under subparagraph (A)--
       ``(i) may be in the form of in-kind contributions, 
     including office equipment, office space, and services; and
       ``(ii) may not be made from funds made available for 
     community development block grants under title I of the 
     Housing and Community Development Act of 1974 (42 U.S.C. 5301 
     et seq.).
       ``(4) Duration.--The Secretary may not provide a grant 
     under this subsection to establish, expand, or operate a 
     telework location in a rural area after the date that is 2 
     years after the establishment of the telework location.
       ``(5) Maximum amount of grant.--The amount of a grant 
     provided to an eligible entity under this subsection shall 
     not exceed $500,000.
       ``(d) Applicability of Certain Federal Law.--An entity that 
     receives funds under this section shall be subject to the 
     provisions of Federal law (including regulations), 
     administered by the Secretary of Labor or the Equal 
     Employment Opportunity Commission, that govern the 
     responsibilities of employers to employees.
       ``(e) Regulations.--Not later than 180 days after the date 
     of enactment of this section, the Secretary shall promulgate 
     regulations to carry out this section.
       ``(f) Authorization of Appropriation.--There is authorized 
     to be appropriated to carry out this section $30,000,000 for 
     each of fiscal years 2002 through 2006, of which $5,000,000 
     shall be provided to establish an institute under subsection 
     (b).''.

     SEC. 642. HISTORIC BARN PRESERVATION.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1981 et seq.) (as amended by section 641) is 
     amended by adding at the end the following:

     ``SEC. 379C. HISTORIC BARN PRESERVATION.

       ``(a) Definitions.--In this section:
       ``(1) Barn.--The term `barn' means a building (other than a 
     dwelling) on a farm, ranch, or other agricultural operation 
     for--
       ``(A) housing animals;
       ``(B) storing or processing crops;
       ``(C) storing and maintaining agricultural equipment; or
       ``(D) serving an essential or useful purpose related to 
     agriculture on the adjacent land.
       ``(2) Eligible applicant.--The term `eligible applicant' 
     means--
       ``(A) a State department of agriculture (or a designee);
       ``(B) a national or State nonprofit organization that--
       ``(i) is exempt from tax under section 501(c)(3) of the 
     Internal Revenue Code of 1986; and

[[Page S12938]]

       ``(ii) has experience or expertise, as determined by the 
     Secretary, in the identification, evaluation, rehabilitation, 
     preservation, or protection of historic barns; and
       ``(C) a State historic preservation office.
       ``(3) Historic barn.--The term `historic barn' means a barn 
     that--
       ``(A) is at least 50 years old;
       ``(B) retains sufficient integrity of design, materials, 
     and construction to clearly identify the barn as an 
     agricultural building; and
       ``(C) meets the criteria for listing on National, State, or 
     local registers or inventories of historic structures.
       ``(4) Secretary.--The term `Secretary' means the Secretary, 
     acting through the Undersecretary of Rural Development.
       ``(b) Program.--The Secretary shall establish a historic 
     barn preservation program--
       ``(1) to assist States in developing a listing of historic 
     barns;
       ``(2) to collect and disseminate information on historic 
     barns;
       ``(3) to foster educational programs relating to the 
     history, construction techniques, rehabilitation, and 
     contribution to society of historic barns; and
       ``(4) to sponsor and conduct research on--
       ``(A) the history of barns; and
       ``(B) best practices to protect and rehabilitate historic 
     barns from the effects of decay, fire, arson, and natural 
     disasters.
       ``(c) Grants.--
       ``(1) In general.--The Secretary may make grants to, or 
     enter into contracts or cooperative agreements with, eligible 
     applicants to carry out an eligible project under paragraph 
     (2).
       ``(2) Eligible projects.--A grant under this subsection may 
     be made to an eligible entity for a project--
       ``(A) to rehabilitate or repair a historic barn;
       ``(B) to preserve a historic barn through--
       ``(i) the installation of a fire protection system, 
     including fireproofing or fire detection system and 
     sprinklers; and
       ``(ii) the installation of a system to prevent vandalism; 
     and
       ``(C) to identify, document, and conduct research on a 
     historic barn to develop and evaluate appropriate techniques 
     or best practices for protecting historic barns.
       ``(3) Requirements.--An eligible applicant that receives a 
     grant for a project under this subsection shall comply with 
     any standards established by the Secretary of the Interior 
     for historic preservation projects.
       ``(d) Funding.--There is authorized to be appropriated to 
     carry out this section, $25,000,000 for the period of fiscal 
     years 2002 through 2006, to remain available until 
     expended.''.

     SEC. 643. GRANTS FOR EMERGENCY WEATHER RADIO TRANSMITTERS.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1981 et seq.) (as amended by section 642)) is 
     amended by adding at the end the following:

     ``SEC. 379D. GRANTS FOR EMERGENCY WEATHER RADIO TRANSMITTERS.

       ``(a) In General.--The Secretary, acting through the 
     Administrator of the Rural Utilities Service, may make grants 
     to public and nonprofit entities for the Federal share of the 
     cost of acquiring radio transmitters to increase coverage of 
     rural areas by the emergency weather radio broadcast system 
     of the National Oceanic and Atmospheric Administration.
       ``(b) Eligibility.--To be eligible for a grant under this 
     section, an applicant shall provide to the Secretary--
       ``(1) a binding commitment from a tower owner to place the 
     transmitter on a tower; and
       ``(2) a description of how the tower placement will 
     increase coverage of a rural area by the emergency weather 
     radio broadcast system of the National Oceanic and 
     Atmospheric Administration.
       ``(c) Federal Share.--A grant provided under this section 
     shall be not more than 75 percent of the cost of acquiring a 
     radio transmitter described in subsection (a).
       ``(d) Authorization.--There is authorized to be 
     appropriated to carry out this section $2,000,000 for each of 
     fiscal years 2002 through 2006.''.

     SEC. 644. BIOENERGY AND BIOCHEMICAL PROJECTS.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1981 et seq.) (as amended by section 643) is 
     amended by adding at the end the following:

     ``SEC. 379E. BIOENERGY AND BIOCHEMICAL PROJECTS.

       ``In carrying out rural development loan, loan guarantee, 
     and grant programs under this title, the Secretary shall 
     provide a priority for bioenergy and biochemical projects.''.

     SEC. 645. DELTA REGIONAL AUTHORITY.

       (a) Authorization of Appropriations.--Section 382M(a) of 
     the Consolidated Farm and Rural Development Act (7 U.S.C. 
     2009aa-12(a)) is amended by striking ``2002'' and inserting 
     ``2006''.
       (b) Termination of Authority.--Section 382N of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-
     13) is amended by striking ``2002'' and inserting ``2006''.

     SEC. 646. SEARCH GRANTS FOR SMALL COMMUNITIES.

       The Consolidated Farm and Rural Development Act (as amended 
     by section 604) is amended by adding at the end the 
     following:

           ``Subtitle J--SEARCH Grants for Small Communities

     ``SEC. 386A. DEFINITIONS.

       ``In this subtitle:
       ``(1) Council.--The term `council' means an independent 
     citizens' council established by section 386B(d).
       ``(2) Environmental project.--
       ``(A) In general.--The term `environmental project' means a 
     project that--
       ``(i) improves environmental quality; and
       ``(ii) is necessary to comply with an environmental law 
     (including a regulation).
       ``(B) Inclusion.--The term `environmental project' includes 
     an initial feasibility study of a project.
       ``(3) Region.--The term `region' means a geographic area of 
     a State, as determined by the Governor of the State.
       ``(4) SEARCH grant.--The term `SEARCH grant' means a grant 
     for special environmental assistance for the regulation of 
     communities and habitat awarded under section 386B(e)(3).
       ``(5) Small community.--The term `small community' means an 
     incorporated or unincorporated rural community with a 
     population of 2,500 inhabitants or less.
       ``(6) State.--The term `State' has the meaning given the 
     term in section 381A(1).

     ``SEC. 386B. SEARCH GRANT PROGRAM.

       ``(a) In General.--There is established the SEARCH Grant 
     Program.
       ``(b) Application.--
       ``(1) In general.--Not later than October 1 of each fiscal 
     year, a State may submit to the Secretary an application to 
     receive a grant under subsection (c) for the fiscal year.
       ``(2) Requirements.--An application under paragraph (1) 
     shall contain--
       ``(A) a certification by the State that the State has 
     appointed members to the council of the State under 
     subsection (c)(2)(C); and
       ``(B) such information as the Secretary may reasonably 
     require.
       ``(c) Grants to States.--
       ``(1) In general.--Not later than 60 days after the date on 
     which the Office of Management and Budget apportions any 
     amounts made available under this subtitle, for each fiscal 
     year after the date of enactment of this subtitle, the 
     Secretary shall, on request by a State--
       ``(A) determine whether any application submitted by the 
     State under subsection (b) meets the requirements of 
     subsection (b)(2); and
       ``(B) subject to paragraph (2), subsection (e)(4)(B)(ii), 
     and section 386D(b), if the Secretary determines that the 
     application meets the requirements of subsection (b)(2), 
     award a grant of not to exceed $1,000,000 to the State, to be 
     used by the council of the State to award SEARCH grants under 
     subsection (e).
       ``(2) Grants to certain states.--The aggregate amount of 
     grants awarded to States other than Alaska, Hawaii, or 1 of 
     the 48 contiguous States, under this subsection shall not 
     exceed $1,000,000 for any fiscal year.
       ``(d) Independent Citizens' Council.--
       ``(1) Establishment.--There is established in each State an 
     independent citizens' council to carry out the duties 
     described in this section.
       ``(2) Composition.--
       ``(A) In general.--Each council shall be composed of 9 
     members, appointed by the Governor of the State.
       ``(B) Representation; residence.--Each member of a council 
     shall--
       ``(i) represent an individual region of the State, as 
     determined by the Governor of the State in which the council 
     is established;
       ``(ii) reside in a small community of the State; and
       ``(iii) be representative of the populations of the State.
       ``(C) Appointment.--Before a State receives funds under 
     this subtitle, the State shall appoint members to the council 
     for the fiscal year, except that not more than 1 member shall 
     be an agent, employee, or official of the State government.
       ``(D) Chairperson.--Each council shall select a chairperson 
     from among the members of the council, except that a member 
     who is an agent, employee, or official of the State 
     government shall not serve as chairperson.
       ``(E) Federal representation.--
       ``(i) In general.--An officer, employee, or agent of the 
     Federal Government may participate in the activities of the 
     council--

       ``(I) in an advisory capacity; and
       ``(II) at the invitation of the council.

       ``(ii) Rural development state directors.--On the request 
     of the council of a State, the State Director for Rural 
     Development of the State shall provide advice and 
     consultation to the council.
       ``(3) SEARCH grants.--
       ``(A) In general.--Each council shall review applications 
     for, and recommend awards of, SEARCH grants to small 
     communities that meet the eligibility criteria under 
     subsection (c).
       ``(B) Recommendations.--In awarding a SEARCH grant, a 
     State--
       ``(i) shall follow the recommendations of the council of 
     the State;
       ``(ii) shall award the funds for any recommended 
     environmental project in a timely and expeditious manner; and
       ``(iii) shall not award a SEARCH grant to a grantee or 
     project in violation of any law of the State (including a 
     regulation).
       ``(C) No matching requirement.--A small community that 
     receives a SEARCH grant under this section shall not be 
     required to provide matching funds.
       ``(e) SEARCH Grants for Small Communities.--
       ``(1) Eligibility.--A SEARCH grant shall be awarded under 
     this section only to a

[[Page S12939]]

     small community for 1 or more environmental projects for 
     which the small community--
       ``(A) needs funds to carry out initial feasibility or 
     environmental studies before applying to traditional funding 
     sources; or
       ``(B) demonstrates, to the satisfaction of the council, 
     that the small community has been unable to obtain sufficient 
     funding from traditional funding sources.
       ``(2) Application.--
       ``(A) Date.--The council shall establish such deadline by 
     which small communities shall submit applications for grants 
     under this section as will permit the council adequate time 
     to review and make recommendations relating to the 
     applications.
       ``(B) Location of application.--A small community shall 
     submit an application described in subparagraph (A) to the 
     council in the State in which the small community is located.
       ``(C) Content of application.--An application described in 
     subparagraph (A) shall include--
       ``(i) a description of the proposed environmental project 
     (including an explanation of how the project would assist the 
     small community in complying with an environmental law 
     (including a regulation));
       ``(ii) an explanation of why the project is important to 
     the small community;
       ``(iii) a description of all actions taken with respect to 
     the project, including a description of any attempt to secure 
     funding and a description of demonstrated need for funding 
     for the project, as of the date of the application; and
       ``(iv) a SEARCH grant application form provided by the 
     council, completed and with all required supporting 
     documentation.
       ``(3) Review and recommendation.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     not later than March 5 of each fiscal year, each council 
     shall--
       ``(i) review all applications received under paragraph (2); 
     and
       ``(ii) recommend for award SEARCH grants to small 
     communities based on--

       ``(I) an evaluation of the eligibility criteria under 
     paragraph (1); and
       ``(II) the content of the application.

       ``(B) Extension of deadline.--The State may extend the 
     deadline described in subparagraph (A) by not more than 10 
     days in a case in which the receipt of recommendations from a 
     council under subparagraph (A)(ii) is delayed because of 
     circumstances beyond the control of the council, as 
     determined by the State.
       ``(4) Unexpended funds.--
       ``(A) In general.--If, for any fiscal year, any unexpended 
     funds remain after SEARCH grants are awarded under subsection 
     (d)(3)(B), the council may repeat the application and review 
     process so that any remaining funds may be recommended for 
     award, and awarded, not later than July 30 of the fiscal 
     year.
       ``(B) Retention of funds.--
       ``(i) In general.--Any unexpended funds that are not 
     awarded under subsection (d)(3)(B) or subparagraph (A) shall 
     be retained by the State for award during the following 
     fiscal year.
       ``(ii) Limitation.--A State that accumulates a balance of 
     unexpended funds described in clause (i) of more than 
     $3,000,000 shall be ineligible to apply for additional funds 
     for SEARCH grants until such time as the State expends the 
     portion of the balance that exceeds $3,000,000.

     ``SEC. 386C. REPORT.

       ``Not later than September 1 of the first fiscal year for 
     which a SEARCH grant is awarded by a council, and annually 
     thereafter, the council shall submit to the Secretary a 
     report that--
       ``(1) describes the number of SEARCH grants awarded during 
     the fiscal year;
       ``(2) identifies each small community that received a 
     SEARCH grant during the fiscal year;
       ``(3) describes the project or purpose for which each 
     SEARCH grant was awarded, including a statement of the 
     benefit to public health or the environment of the 
     environmental project receiving the grant funds; and
       ``(4) describes the status of each project or portion of a 
     project for which a SEARCH grant was awarded, including a 
     project or portion of a project for which a SEARCH grant was 
     awarded for any fiscal year before the fiscal year in which 
     the report is submitted.

     ``SEC. 386D. FUNDING.

       ``(a) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out section 386B(c) $51,000,000, 
     of which not to exceed $1,000,000 shall be used to make 
     grants under section 386B(c)(2).
       ``(b) Actual Appropriation.--If funds to carry out section 
     386B(c) are made available for a fiscal year in an amount 
     that is less than the amount authorized under subsection (a) 
     for the fiscal year, the appropriated funds shall be divided 
     equally among the 50 States.
       ``(c) Unused Funds.--If, for any fiscal year, a State does 
     not apply, or does not qualify, to receive funds under 
     section 386B(b), the funds that would have been made 
     available to the State under section 386B(c) on submission by 
     the State of a successful application under section 386B(b) 
     shall be redistributed for award under this subtitle among 
     States, the councils of which awarded 1 or more SEARCH grants 
     during the preceding fiscal year.
       ``(d) Other Expenses.--There are authorized to be 
     appropriated such sums as are necessary to carry out the 
     provisions of this subtitle (other than section 386B(c)).''.

     SEC. 647. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

       The Consolidated Farm and Rural Development Act (as amended 
     by section 646) is amended by adding at the end the 
     following:

         ``Subtitle K--Northern Great Plains Regional Authority

     ``SEC. 387A. DEFINITIONS.

       ``In this subtitle:
       ``(1) Authority.--The term `Authority' means the Northern 
     Great Plains Regional Authority established by section 387B.
       ``(2) Federal grant program.--The term `Federal grant 
     program' means a Federal grant program to provide assistance 
     in--
       ``(A) acquiring or developing land;
       ``(B) constructing or equipping a highway, road, bridge, or 
     facility; or
       ``(C) carrying out other economic development activities.
       ``(3) Region.--The term `region' means the States of Iowa, 
     Minnesota, Nebraska, North Dakota, and South Dakota.

     ``SEC. 387B. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

       ``(a) Establishment.--
       ``(1) In general.--There is established the Northern Great 
     Plains Regional Authority.
       ``(2) Composition.--The Authority shall be composed of--
       ``(A) a Federal member, to be appointed by the President, 
     with the advice and consent of the Senate; and
       ``(B) the Governor (or a designee of the Governor) of each 
     State in the region that elects to participate in the 
     Authority.
       ``(3) Cochairpersons.--The Authority shall be headed by--
       ``(A) the Federal member, who shall serve--
       ``(i) as the Federal cochairperson; and
       ``(ii) as a liaison between the Federal Government and the 
     Authority; and
       ``(B) a State cochairperson, who--
       ``(i) shall be a Governor of a participating State in the 
     region; and
       ``(ii) shall be elected by the State members for a term of 
     not less than 1 year.
       ``(b) Alternate Members.--
       ``(1) State alternates.--The State member of a 
     participating State may have a single alternate, who shall 
     be--
       ``(A) a resident of that State; and
       ``(B) appointed by the Governor of the State.
       ``(2) Alternate federal cochairperson.--The President shall 
     appoint an alternate Federal cochairperson.
       ``(3) Quorum.--A State alternate shall not be counted 
     toward the establishment of a quorum of the Authority in any 
     instance in which a quorum of the State members is required 
     to be present.
       ``(4) Delegation of power.--No power or responsibility of 
     the Authority specified in paragraphs (2) and (3) of 
     subsection (c), and no voting right of any Authority member, 
     shall be delegated to any person--
       ``(A) who is not an Authority member; or
       ``(B) who is not entitled to vote in Authority meetings.
       ``(c) Voting.--
       ``(1) In general.--A decision by the Authority shall 
     require a majority vote of the Authority (not including any 
     member representing a State that is delinquent under 
     subsection (g)(2)(C)) to be effective.
       ``(2) Quorum.--A quorum of State members shall be required 
     to be present for the Authority to make any policy decision, 
     including--
       ``(A) a modification or revision of an Authority policy 
     decision;
       ``(B) approval of a State or regional development plan; and
       ``(C) any allocation of funds among the States.
       ``(3) Project and grant proposals.--The approval of project 
     and grant proposals shall be--
       ``(A) a responsibility of the Authority; and
       ``(B) conducted in accordance with section 387I.
       ``(4) Voting by alternate members.--An alternate member 
     shall vote in the case of the absence, death, disability, 
     removal, or resignation of the Federal or State 
     representative for which the alternate member is an 
     alternate.
       ``(d) Duties.--The Authority shall--
       ``(1) develop, on a continuing basis, comprehensive and 
     coordinated plans and programs to establish priorities and 
     approve grants for the economic development of the region, 
     giving due consideration to other Federal, State, and local 
     planning and development activities in the region;
       ``(2) not later than 220 days after the date of enactment 
     of this subtitle, establish priorities in a development plan 
     for the region (including 5-year regional outcome targets);
       ``(3) assess the needs and assets of the region based on 
     available research, demonstrations, investigations, 
     assessments, and evaluations of the region prepared by 
     Federal, State, and local agencies, universities, local 
     development districts, and other nonprofit groups;
       ``(4) formulate and recommend to the Governors and 
     legislatures of States that participate in the Authority 
     forms of interstate cooperation;
       ``(5) work with State and local agencies in developing 
     appropriate model legislation;
       ``(6)(A) enhance the capacity of, and provide support for, 
     local development districts in the region; or

[[Page S12940]]

       ``(B) if no local development district exists in an area in 
     a participating State in the region, foster the creation of a 
     local development district;
       ``(7) encourage private investment in industrial, 
     commercial, and other economic development projects in the 
     region; and
       ``(8) cooperate with and assist State governments with 
     economic development programs of participating States.
       ``(e) Administration.--In carrying out subsection (d), the 
     Authority may--
       ``(1) hold such hearings, sit and act at such times and 
     places, take such testimony, receive such evidence, and print 
     or otherwise reproduce and distribute a description of the 
     proceedings and reports on actions by the Authority as the 
     Authority considers appropriate;
       ``(2) authorize, through the Federal or State cochairperson 
     or any other member of the Authority designated by the 
     Authority, the administration of oaths if the Authority 
     determines that testimony should be taken or evidence 
     received under oath;
       ``(3) request from any Federal, State, or local department 
     or agency such information as may be available to or 
     procurable by the department or agency that may be of use to 
     the Authority in carrying out duties of the Authority;
       ``(4) adopt, amend, and repeal bylaws and rules governing 
     the conduct of Authority business and the performance of 
     Authority duties;
       ``(5) request the head of any Federal department or agency 
     to detail to the Authority such personnel as the Authority 
     requires to carry out duties of the Authority, each such 
     detail to be without loss of seniority, pay, or other 
     employee status;
       ``(6) request the head of any State department or agency or 
     local government to detail to the Authority such personnel as 
     the Authority requires to carry out duties of the Authority, 
     each such detail to be without loss of seniority, pay, or 
     other employee status;
       ``(7) provide for coverage of Authority employees in a 
     suitable retirement and employee benefit system by--
       ``(A) making arrangements or entering into contracts with 
     any participating State government; or
       ``(B) otherwise providing retirement and other employee 
     benefit coverage;
       ``(8) accept, use, and dispose of gifts or donations of 
     services or real, personal, tangible, or intangible property;
       ``(9) enter into and perform such contracts, leases, 
     cooperative agreements, or other transactions as are 
     necessary to carry out Authority duties, including any 
     contracts, leases, or cooperative agreements with--
       ``(A) any department, agency, or instrumentality of the 
     United States;
       ``(B) any State (including a political subdivision, agency, 
     or instrumentality of the State); or
       ``(C) any person, firm, association, or corporation; and
       ``(10) establish and maintain a central office and field 
     offices at such locations as the Authority may select.
       ``(f) Federal Agency Cooperation.--A Federal agency shall--
       ``(1) cooperate with the Authority; and
       ``(2) provide, on request of the Federal cochairperson, 
     appropriate assistance in carrying out this subtitle, in 
     accordance with applicable Federal laws (including 
     regulations).
       ``(g) Administrative Expenses.--
       ``(1) In general.--Administrative expenses of the Authority 
     (except for the expenses of the Federal cochairperson, 
     including expenses of the alternate and staff of the Federal 
     cochairperson, which shall be paid solely by the Federal 
     Government) shall be paid--
       ``(A) by the Federal Government, in an amount equal to 50 
     percent of the administrative expenses; and
       ``(B) by the States in the region participating in the 
     Authority, in an amount equal to 50 percent of the 
     administrative expenses.
       ``(2) State share.--
       ``(A) In general.--The share of administrative expenses of 
     the Authority to be paid by each State shall be determined by 
     the Authority.
       ``(B) No federal participation.--The Federal cochairperson 
     shall not participate or vote in any decision under 
     subparagraph (A).
       ``(C) Delinquent states.--If a State is delinquent in 
     payment of the State's share of administrative expenses of 
     the Authority under this subsection--
       ``(i) no assistance under this subtitle shall be furnished 
     to the State (including assistance to a political subdivision 
     or a resident of the State); and
       ``(ii) no member of the Authority from the State shall 
     participate or vote in any action by the Authority.
       ``(h) Compensation.--
       ``(1) Federal cochairperson.--The Federal cochairperson 
     shall be compensated by the Federal Government at level III 
     of the Executive Schedule in subchapter II of chapter 53 of 
     title 5, United States Code.
       ``(2) Alternate federal cochairperson.--The alternate 
     Federal cochairperson--
       ``(A) shall be compensated by the Federal Government at 
     level V of the Executive Schedule described in paragraph (1); 
     and
       ``(B) when not actively serving as an alternate for the 
     Federal cochairperson, shall perform such functions and 
     duties as are delegated by the Federal cochairperson.
       ``(3) State members and alternates.--
       ``(A) In general.--A State shall compensate each member and 
     alternate representing the State on the Authority at the rate 
     established by law of the State.
       ``(B) No additional compensation.--No State member or 
     alternate member shall receive any salary, or any 
     contribution to or supplementation of salary from any source 
     other than the State for services provided by the member or 
     alternate to the Authority.
       ``(4) Detailed employees.--
       ``(A) In general.--No person detailed to serve the 
     Authority under subsection (e)(6) shall receive any salary or 
     any contribution to or supplementation of salary for services 
     provided to the Authority from--
       ``(i) any source other than the State, local, or 
     intergovernmental department or agency from which the person 
     was detailed; or
       ``(ii) the Authority.
       ``(B) Violation.--Any person that violates this paragraph 
     shall be fined not more than $5,000, imprisoned not more than 
     1 year, or both.
       ``(C) Applicable law.--The Federal cochairperson, the 
     alternate Federal cochairperson, and any Federal officer or 
     employee detailed to duty on the Authority under subsection 
     (e)(5) shall not be subject to subparagraph (A), but shall 
     remain subject to sections 202 through 209 of title 18, 
     United States Code.
       ``(5) Additional personnel.--
       ``(A) Compensation.--
       ``(i) In general.--The Authority may appoint and fix the 
     compensation of an executive director and such other 
     personnel as are necessary to enable the Authority to carry 
     out the duties of the Authority.
       ``(ii) Exception.--Compensation under clause (i) shall not 
     exceed the maximum rate for the Senior Executive Service 
     under section 5382 of title 5, United States Code, including 
     any applicable locality-based comparability payment that may 
     be authorized under section 5304(h)(2)(C) of that title.
       ``(B) Executive director.--The executive director shall be 
     responsible for--
       ``(i) the carrying out of the administrative duties of the 
     Authority;
       ``(ii) direction of the Authority staff; and
       ``(iii) such other duties as the Authority may assign.
       ``(C) No federal employee status.--No member, alternate, 
     officer, or employee of the Authority (except the Federal 
     cochairperson of the Authority, the alternate and staff for 
     the Federal cochairperson, and any Federal employee detailed 
     to the Authority under subsection (e)(5)) shall be considered 
     to be a Federal employee for any purpose.
       ``(i) Conflicts of Interest.--
       ``(1) In general.--Except as provided under paragraph (2), 
     no State member, alternate, officer, or employee of the 
     Authority shall participate personally and substantially as a 
     member, alternate, officer, or employee of the Authority, 
     through decision, approval, disapproval, recommendation, the 
     rendering of advice, investigation, or otherwise, in any 
     proceeding, application, request for a ruling or other 
     determination, contract, claim, controversy, or other matter 
     in which, to knowledge of the member, alternate, officer, or 
     employee--
       ``(A) the member, alternate, officer, or employee;
       ``(B) the spouse, minor child, partner, or organization 
     (other than a State or political subdivision of the State) of 
     the member, alternate, officer, or employee, in which the 
     member, alternate, officer, or employee is serving as 
     officer, director, trustee, partner, or employee; or
       ``(C) any person or organization with whom the member, 
     alternate, officer, or employee is negotiating or has any 
     arrangement concerning prospective employment;
     has a financial interest.
       ``(2) Disclosure.--Paragraph (1) shall not apply if the 
     State member, alternate, officer, or employee--
       ``(A) immediately advises the Authority of the nature and 
     circumstances of the proceeding, application, request for a 
     ruling or other determination, contract, claim, controversy, 
     or other particular matter presenting a potential conflict of 
     interest;
       ``(B) makes full disclosure of the financial interest; and
       ``(C) before the proceeding concerning the matter 
     presenting the conflict of interest, receives a written 
     determination by the Authority that the interest is not so 
     substantial as to be likely to affect the integrity of the 
     services that the Authority may expect from the State member, 
     alternate, officer, or employee.
       ``(3) Violation.--Any person that violates this subsection 
     shall be fined not more than $10,000, imprisoned not more 
     than 2 years, or both.
       ``(j) Validity of Contracts, Loans, and Grants.--The 
     Authority may declare void any contract, loan, or grant of or 
     by the Authority in relation to which the Authority 
     determines that there has been a violation of any provision 
     under subsection (h)(4), subsection (i), or sections 202 
     through 209 of title 18, United States Code.

     ``SEC. 387C. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.

       ``(a) In General.--The Authority may approve grants to 
     States, local governments, and public and nonprofit 
     organizations for projects, approved in accordance with 
     section 387I--
       ``(1) to develop the transportation and telecommunication 
     infrastructure of the region for the purpose of facilitating 
     economic development in the region (except that grants for 
     this purpose may only be made to States,

[[Page S12941]]

     local governments, and nonprofit organizations);
       ``(2) to assist the region in obtaining the job training, 
     employment-related education, and business development (with 
     an emphasis on entrepreneurship) that are needed to build and 
     maintain strong local economies;
       ``(3) to provide assistance to severely distressed and 
     underdeveloped areas that lack financial resources for 
     improving basic public services;
       ``(4) to provide assistance to severely distressed and 
     underdeveloped areas that lack financial resources for 
     equipping industrial parks and related facilities; and
       ``(5) to otherwise achieve the purposes of this subtitle.
       ``(b) Funding.--
       ``(1) In general.--Funds for grants under subsection (a) 
     may be provided--
       ``(A) entirely from appropriations to carry out this 
     section;
       ``(B) in combination with funds available under another 
     Federal or Federal grant program; or
       ``(C) from any other source.
       ``(2) Priority of funding.--To best build the foundations 
     for long-term economic development and to complement other 
     Federal and State resources in the region, Federal funds 
     available under this subtitle shall be focused on the 
     activities in the following order or priority:
       ``(A) Basic public infrastructure in distressed counties 
     and isolated areas of distress.
       ``(B) Transportation and telecommunication infrastructure 
     for the purpose of facilitating economic development in the 
     region.
       ``(C) Business development, with emphasis on 
     entrepreneurship.
       ``(D) Job training or employment-related education, with 
     emphasis on use of existing public educational institutions 
     located in the region.
       ``(3) Federal share in grant programs.--Notwithstanding any 
     provision of law limiting the Federal share in any grant 
     program, funds appropriated to carry out this section may be 
     used to increase a Federal share in a grant program, as the 
     Authority determines appropriate.

     ``SEC. 387D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

       ``(a) Finding.--Congress finds that certain States and 
     local communities of the region, including local development 
     districts, may be unable to take maximum advantage of Federal 
     grant programs for which the States and communities are 
     eligible because--
       ``(1) they lack the economic resources to meet the required 
     matching share; or
       ``(2) there are insufficient funds available under the 
     applicable Federal grant law authorizing the program to meet 
     pressing needs of the region.
       ``(b) Federal Grant Program Funding.--In accordance with 
     subsection (c), the Federal cochairperson may use amounts 
     made available to carry out this subtitle, without regard to 
     any limitations on areas eligible for assistance or 
     authorizations for appropriation under any other Act, to fund 
     all or any portion of the basic Federal contribution to a 
     project or activity under a Federal grant program in the 
     region in an amount that is above the fixed maximum portion 
     of the cost of the project otherwise authorized by applicable 
     law, but not to exceed 90 percent of the costs of the project 
     (except as provided in section 387F(b)).
       ``(c) Certification.--
       ``(1) In general.--In the case of any program or project 
     for which all or any portion of the basic Federal 
     contribution to the project under a Federal grant program is 
     proposed to be made under this section, no Federal 
     contribution shall be made until the Federal official 
     administering the Federal law authorizing the contribution 
     certifies that the program or project--
       ``(A) meets the applicable requirements of the applicable 
     Federal grant law; and
       ``(B) could be approved for Federal contribution under the 
     law if funds were available under the law for the program or 
     project.
       ``(2) Certification by authority.--
       ``(A) In general.--The certifications and determinations 
     required to be made by the Authority for approval of projects 
     under this subtitle in accordance with section 387I--
       ``(i) shall be controlling; and
       ``(ii) shall be accepted by the Federal agencies.
       ``(B) Acceptance by federal cochairperson.--Any finding, 
     report, certification, or documentation required to be 
     submitted to the head of the department, agency, or 
     instrumentality of the Federal Government responsible for the 
     administration of any Federal grant program shall be accepted 
     by the Federal cochairperson with respect to a supplemental 
     grant for any project under the program.

     ``SEC. 387E. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND 
                   ADMINISTRATIVE EXPENSES.

       ``(a) Definition of Local Development District.--In this 
     section, the term `local development district' means an 
     entity that--
       ``(1) is--
       ``(A) a planning district in existence on the date of 
     enactment of this subtitle that is recognized by the Economic 
     Development Administration of the Department of Commerce; or
       ``(B) where an entity described in subparagraph (A) does 
     not exist--
       ``(i) organized and operated in a manner that ensures 
     broad-based community participation and an effective 
     opportunity for other nonprofit groups to contribute to the 
     development and implementation of programs in the region;
       ``(ii) governed by a policy board with at least a simple 
     majority of members consisting of elected officials or 
     employees of a general purpose unit of local government who 
     have been appointed to represent the government;
       ``(iii) certified to the Authority as having a charter or 
     authority that includes the economic development of counties 
     or parts of counties or other political subdivisions within 
     the region--

       ``(I) by the Governor of each State in which the entity is 
     located; or
       ``(II) by the State officer designated by the appropriate 
     State law to make the certification; and

       ``(iv)(I) a nonprofit incorporated body organized or 
     chartered under the law of the State in which the entity is 
     located;
       ``(II) a nonprofit agency or instrumentality of a State or 
     local government;
       ``(III) a public organization established before the date 
     of enactment of this subtitle under State law for creation of 
     multi-jurisdictional, area-wide planning organizations; or
       ``(IV) a nonprofit association or combination of bodies, 
     agencies, and instrumentalities described in subclauses (I) 
     through (III); and
       ``(2) has not, as certified by the Federal cochairperson--
       ``(A) inappropriately used Federal grant funds from any 
     Federal source; or
       ``(B) appointed an officer who, during the period in which 
     another entity inappropriately used Federal grant funds from 
     any Federal source, was an officer of the other entity.
       ``(b) Grants to Local Development Districts.--
       ``(1) In general.--The Authority may make grants for 
     administrative expenses under this section.
       ``(2) Conditions for grants.--
       ``(A) Maximum amount.--The amount of any grant awarded 
     under paragraph (1) shall not exceed 80 percent of the 
     administrative expenses of the local development district 
     receiving the grant.
       ``(B) Maximum period.--No grant described in paragraph (1) 
     shall be awarded to a State agency certified as a local 
     development district for a period greater than 3 years.
       ``(C) Local share.--The contributions of a local 
     development district for administrative expenses may be in 
     cash or in kind, fairly evaluated, including space, 
     equipment, and services.
       ``(c) Duties of Local Development Districts.--A local 
     development district shall--
       ``(1) operate as a lead organization serving multicounty 
     areas in the region at the local level; and
       ``(2) serve as a liaison between State and local 
     governments, nonprofit organizations (including community-
     based groups and educational institutions), the business 
     community, and citizens that--
       ``(A) are involved in multijurisdictional planning;
       ``(B) provide technical assistance to local jurisdictions 
     and potential grantees; and
       ``(C) provide leadership and civic development assistance.

     ``SEC. 387F. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED 
                   COUNTIES.

       ``(a) Designations.--Not later than 90 days after the date 
     of enactment of this subtitle, and annually thereafter, the 
     Authority, in accordance with such criteria as the Authority 
     may establish, shall designate--
       ``(1) as distressed counties, counties in the region that 
     are the most severely and persistently distressed and 
     underdeveloped and have high rates of poverty, unemployment, 
     or outmigration;
       ``(2) as nondistressed counties, counties in the region 
     that are not designated as distressed counties under 
     paragraph (1); and
       ``(3) as isolated areas of distress, areas located in 
     nondistressed counties (as designated under paragraph (2)) 
     that have high rates of poverty, unemployment, or 
     outmigration.
       ``(b) Distressed Counties.--
       ``(1) In general.--The Authority shall allocate at least 75 
     percent of the appropriations made available under section 
     387M for programs and projects designed to serve the needs of 
     distressed counties and isolated areas of distress in the 
     region.
       ``(2) Funding limitations.--The funding limitations under 
     section 387D(b) shall not apply to a project providing 
     transportation or telecommunication or basic public services 
     to residents of 1 or more distressed counties or isolated 
     areas of distress in the region.
       ``(c) Nondistressed Counties.--
       ``(1) In general.--Except as provided in this subsection, 
     no funds shall be provided under this subtitle for a project 
     located in a county designated as a nondistressed county 
     under subsection (a)(2).
       ``(2) Exceptions.--
       ``(A) In general.--The funding prohibition under paragraph 
     (1) shall not apply to grants to fund the administrative 
     expenses of local development districts under section 
     387E(b).
       ``(B) Multicounty projects.--The Authority may waive the 
     application of the funding prohibition under paragraph (1) 
     to--
       ``(i) a multicounty project that includes participation by 
     a nondistressed county; or
       ``(ii) any other type of project;

[[Page S12942]]

     if the Authority determines that the project could bring 
     significant benefits to areas of the region outside a 
     nondistressed county.
       ``(C) Isolated areas of distress.--For a designation of an 
     isolated area of distress for assistance to be effective, the 
     designation shall be supported--
       ``(i) by the most recent Federal data available; or
       ``(ii) if no recent Federal data are available, by the most 
     recent data available through the government of the State in 
     which the isolated area of distress is located.
       ``(d) Transportation, Telecommunication, and Basic Public 
     Infrastructure.--The Authority shall allocate at least 50 
     percent of any funds made available under section 387M for 
     transportation, telecommunication, and basic public 
     infrastructure projects authorized under paragraphs (1) and 
     (3) of section 387C(a).

     ``SEC. 387G. DEVELOPMENT PLANNING PROCESS.

       ``(a) State Development Plan.--In accordance with policies 
     established by the Authority, each State member shall submit 
     a development plan for the area of the region represented by 
     the State member.
       ``(b) Content of Plan.--A State development plan submitted 
     under subsection (a) shall reflect the goals, objectives, and 
     priorities identified in the regional development plan 
     developed under section 387B(d)(2).
       ``(c) Consultation With Interested Local Parties.--In 
     carrying out the development planning process (including the 
     selection of programs and projects for assistance), a State 
     may--
       ``(1) consult with--
       ``(A) local development districts; and
       ``(B) local units of government; and
       ``(2) take into consideration the goals, objectives, 
     priorities, and recommendations of the entities described in 
     paragraph (1).
       ``(d) Public Participation.--
       ``(1) In general.--The Authority and applicable State and 
     local development districts shall encourage and assist, to 
     the maximum extent practicable, public participation in the 
     development, revision, and implementation of all plans and 
     programs under this subtitle.
       ``(2) Regulations.--The Authority shall develop guidelines 
     for providing public participation described in paragraph 
     (1), including public hearings.

     ``SEC. 387H. PROGRAM DEVELOPMENT CRITERIA.

       ``(a) In General.--In considering programs and projects to 
     be provided assistance under this subtitle, and in 
     establishing a priority ranking of the requests for 
     assistance provided by the Authority, the Authority shall 
     follow procedures that ensure, to the maximum extent 
     practicable, consideration of--
       ``(1) the relationship of the project or class of projects 
     to overall regional development;
       ``(2) the per capita income and poverty and unemployment 
     and outmigration rates in an area;
       ``(3) the financial resources available to the applicants 
     for assistance seeking to carry out the project, with 
     emphasis on ensuring that projects are adequately financed to 
     maximize the probability of successful economic development;
       ``(4) the importance of the project or class of projects in 
     relation to other projects or classes of projects that may be 
     in competition for the same funds;
       ``(5) the prospects that the project for which assistance 
     is sought will improve, on a continuing rather than a 
     temporary basis, the opportunities for employment, the 
     average level of income, or the economic development of the 
     area served by the project; and
       ``(6) the extent to which the project design provides for 
     detailed outcome measurements by which grant expenditures and 
     the results of the expenditures may be evaluated.
       ``(b) No Relocation Assistance.--No financial assistance 
     authorized by this subtitle shall be used to assist a person 
     or entity in relocating from one area to another, except that 
     financial assistance may be used as otherwise authorized by 
     this title to attract businesses from outside the region to 
     the region.
       ``(c) Reduction of Funds.--Funds may be provided for a 
     program or project in a State under this subtitle only if the 
     Authority determines that the level of Federal or State 
     financial assistance provided under a law other than this 
     subtitle, for the same type of program or project in the same 
     area of the State within the region, will not be reduced as a 
     result of funds made available by this subtitle.

     ``SEC. 387I. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.

       ``(a) In General.--A State or regional development plan or 
     any multistate subregional plan that is proposed for 
     development under this subtitle shall be reviewed by the 
     Authority.
       ``(b) Evaluation by State Member.--An application for a 
     grant or any other assistance for a project under this 
     subtitle shall be made through and evaluated for approval by 
     the State member of the Authority representing the applicant.
       ``(c) Certification.--An application for a grant or other 
     assistance for a project shall be approved only on 
     certification by the State member that the application for 
     the project--
       ``(1) describes ways in which the project complies with any 
     applicable State development plan;
       ``(2) meets applicable criteria under section 387H;
       ``(3) provides adequate assurance that the proposed project 
     will be properly administered, operated, and maintained; and
       ``(4) otherwise meets the requirements of this subtitle.
       ``(d) Votes for Decisions.--On certification by a State 
     member of the Authority of an application for a grant or 
     other assistance for a specific project under this section, 
     an affirmative vote of the Authority under section 387B(c) 
     shall be required for approval of the application.

     ``SEC. 387J. CONSENT OF STATES.

       ``Nothing in this subtitle requires any State to engage in 
     or accept any program under this subtitle without the consent 
     of the State.

     ``SEC. 387K. RECORDS.

       ``(a) Records of the Authority.--
       ``(1) In general.--The Authority shall maintain accurate 
     and complete records of all transactions and activities of 
     the Authority.
       ``(2) Availability.--All records of the Authority shall be 
     available for audit and examination by the Comptroller 
     General of the United States and the Inspector General of the 
     Department of Agriculture (including authorized 
     representatives of the Comptroller General and the Inspector 
     General of the Department of Agriculture).
       ``(b) Records of Recipients of Federal Assistance.--
       ``(1) In general.--A recipient of Federal funds under this 
     subtitle shall, as required by the Authority, maintain 
     accurate and complete records of transactions and activities 
     financed with Federal funds and report on the transactions 
     and activities to the Authority.
       ``(2) Availability.--All records required under paragraph 
     (1) shall be available for audit by the Comptroller General 
     of the United States, the Inspector General of the Department 
     of Agriculture, and the Authority (including authorized 
     representatives of the Comptroller General, the Inspector 
     General of the Department of Agriculture, and the Authority).
       ``(c) Annual Audit.--The Inspector General of the 
     Department of Agriculture shall audit the activities, 
     transactions, and records of the Authority on an annual 
     basis.

     ``SEC. 387L. ANNUAL REPORT.

       ``Not later than 180 days after the end of each fiscal 
     year, the Authority shall submit to the President and to 
     Congress a report describing the activities carried out under 
     this subtitle.

     ``SEC. 387M. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There is authorized to be appropriated 
     to the Authority to carry out this subtitle $30,000,000 for 
     each of fiscal years 2002 through 2006, to remain available 
     until expended.
       ``(b) Administrative Expenses.--Not more than 5 percent of 
     the amount appropriated under subsection (a) for a fiscal 
     year shall be used for administrative expenses of the 
     Authority.
       ``(c) Minimum State Share of Grants.--Notwithstanding any 
     other provision of this subtitle, for any fiscal year, the 
     aggregate amount of grants received by a State and all 
     persons or entities in the State under this subtitle shall be 
     not less than \1/3\ of the product obtained by multiplying--
       ``(1) the aggregate amount of grants under this subtitle 
     for the fiscal year; and
       ``(2) the ratio that--
       ``(A) the population of the State (as determined by the 
     Secretary of Commerce based on the most recent decennial 
     census for which data are available); bears to
       ``(B) the population of the region (as so determined).

     ``SEC. 387N. TERMINATION OF AUTHORITY.

       ``This subtitle and the authority provided under this 
     subtitle expire on October 1, 2006.''.

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

     SEC. 651. ALTERNATIVE AGRICULTURAL RESEARCH AND 
                   COMMERCIALIZATION CORPORATION.

       (a) Repeal of Corporation Authorization.--Subtitle G of 
     title XVI of the Food, Agriculture, Conservation, and Trade 
     Act of 1990 (7 U.S.C. 5901 et seq.) is repealed.
       (b) Disposition of Assets.--On the date of enactment of 
     this Act--
       (1) the assets, both tangible and intangible, of the 
     Alternative Agricultural Research and Commercialization 
     Corporation (referred to in this section as the 
     ``Corporation''), including the funds in the Alternative 
     Agricultural Research and Commercialization Revolving Fund as 
     of the date of enactment of this Act, are transferred to the 
     Secretary of Agriculture; and
       (2) notwithstanding the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 471 et seq.), the Secretary 
     shall have authority to manage and dispose of the assets 
     transferred under paragraph (1) in a manner that, to the 
     maximum extent practicable, provides the greatest return on 
     investment.
       (c) Use of Assets.--
       (1) In general.--Funds transferred under subsection (b), 
     and any income from assets or proceeds from the sale of 
     assets transferred under subsection (b), shall be deposited 
     into an account in the Treasury, and shall remain available 
     to the Secretary until expended, without further 
     appropriation, to pay--
       (A) any outstanding claims or obligations of the 
     Corporation; and
       (B) the costs incurred by the Secretary in carrying out 
     this section.
       (2) Final disposition.--On final disposition of all assets 
     transferred under subsection (b),

[[Page S12943]]

     any funds remaining in the account described in paragraph (1) 
     shall be transferred into miscellaneous receipts in the 
     Treasury.
       (d) Conforming Amendments.--
       (1) The following provisions are repealed:
       (A) Section 730 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 5902 note; Public Law 104-127).
       (B) Section 9101(3)(Q) of title 31, United States Code.
       (2) Section 401(c) of the Agricultural Research, Education, 
     and Extension Reform Act of 1998 (7 U.S.C. 7621(c)) is 
     amended by striking paragraph (1) and inserting the 
     following:
       ``(1) Critical emerging issues.--Subject to paragraph (2), 
     the Secretary shall use the funds in the Account for 
     research, extension, and education grants (referred to in 
     this section as `grants') to address critical emerging 
     agricultural issues related to--
       ``(A) future food production;
       ``(B) environmental quality and natural resource 
     management; or
       ``(C) farm income.''.
       (3) Section 793(c)(1)(A)(ii)(II) of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 
     2204f(c)(1)(A)(ii)(II)) is amended by striking ``subtitle G 
     of title XVI and''.

     SEC. 652. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN 
                   RURAL AREAS.

       (a) In General.--Section 2335A of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-5) is 
     amended by striking ``2002'' and inserting ``2006''.
       (b) Conforming Amendment.--Section 1(b) of Public Law 102-
     551 (7 U.S.C. 950aaa note) is amended by striking ``1997'' 
     and inserting ``2006''.

             Subtitle E--Rural Electrification Act of 1936

     SEC. 661. BIOENERGY AND BIOCHEMICAL PROJECTS.

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

     ``SEC. 20. BIOENERGY AND BIOCHEMICAL PROJECTS.

       ``In carrying out rural electric loan, loan guarantee, and 
     grant programs under this Act, the Secretary shall provide a 
     priority for bioenergy and biochemical projects.''.

     SEC. 662. GUARANTEES FOR BONDS AND NOTES ISSUED FOR 
                   ELECTRIFICATION OR TELEPHONE PURPOSES.

       (a) In General.--The Rural Electrification Act of 1936 is 
     amended by inserting after section 313 (7 U.S.C. 940c) the 
     following:

     ``SEC. 313A. GUARANTEES FOR BONDS AND NOTES ISSUED FOR 
                   ELECTRIFICATION OR TELEPHONE PURPOSES.

       ``(a) In General.--Subject to subsection (b), the Secretary 
     shall guarantee payments on bonds or notes issued by 
     cooperative or other lenders organized on a not-for-profit 
     basis if the proceeds of the bonds or notes are used for 
     electrification or telephone projects eligible for assistance 
     under this Act, including the refinancing of bonds or notes 
     issued for such projects.
       ``(b) Limitations.--
       ``(1) Outstanding loans.--A lender shall not receive a 
     guarantee under this section for a bond or note if, at the 
     time of the guarantee, the total principal amount of such 
     guaranteed bonds or notes outstanding of the lender would 
     exceed the principal amount of outstanding loans of the 
     lender for electrification or telephone purposes that have 
     been made concurrently with loans approved for such purposes 
     under this Act.
       ``(2) Generation of electricity.--The Secretary shall not 
     guarantee payment on a bond or note issued by a lender, the 
     proceeds of which are used for the generation of electricity.
       ``(3) Qualifications.--The Secretary may deny the request 
     of a lender for the guarantee of a bond or note under this 
     section if the Secretary determines that--
       ``(A) the lender does not have appropriate expertise or 
     experience or is otherwise not qualified to make loans for 
     electrification or telephone purposes;
       ``(B) the bond or note issued by the lender is not of 
     reasonable and sufficient quality; or
       ``(C) the lender has not provided sufficient evidence that 
     the proceeds of the bond or note are used for eligible 
     projects described in subsection (a).
       ``(4) Interest rate reduction.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a lender may not use any amount obtained from the reduction 
     in funding costs as a result of the guarantee of a bond or 
     note under this section to reduce the interest rate on a new 
     or outstanding loan.
       ``(B) Concurrent loans.--A lender may use any amount 
     described in subparagraph (A) to reduce the interest rate on 
     a loan if the loan is--
       ``(i) made by the lender for electrification or telephone 
     projects that are eligible for assistance under this Act; and
       ``(ii) made concurrently with a loan approved by the 
     Secretary under this Act for such a project, as provided in 
     section 307.
       ``(c) Fees.--
       ``(1) In general.--A lender that receives a guarantee 
     issued under this section on a bond or note shall pay a fee 
     to the Secretary.
       ``(2) Amount.--The amount of an annual fee paid for the 
     guarantee of a bond or note under this section shall be equal 
     to 30 basis points of the amount of the unpaid principal of 
     the bond or note guaranteed under this section.
       ``(3) Payment.--A lender shall pay the fees required under 
     this subsection on a semiannual basis.
       ``(4) Rural economic development subaccount.--Subject to 
     subsection (e)(2), fees collected under this subsection shall 
     be--
       ``(A) deposited into the rural economic development 
     subaccount maintained under section 313(b)(2)(A), to remain 
     available until expended; and
       ``(B) used for the purposes described in section 
     313(b)(2)(B).
       ``(d) Guarantees.--
       ``(1) In general.--A guarantee issued under this section 
     shall--
       ``(A) be for the full amount of a bond or note, including 
     the amount of principal, interest, and call premiums;
       ``(B) be fully assignable and transferable; and
       ``(C) represent the full faith and credit of the United 
     States.
       ``(2) Limitation.--To ensure that the Secretary has the 
     resources necessary to properly examine the proposed 
     guarantees, the Secretary may limit the number of guarantees 
     issued under this section if the number of such guarantees 
     exceeds 5 per year.
       ``(3) Department opinion.--On the timely request of an 
     eligible lender, the General Counsel of the Department of 
     Agriculture shall provide the Secretary with an opinion 
     regarding the validity and authority of a guarantee issued to 
     the lender under this section.
       ``(e) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     such sums as are necessary to carry out this section.
       ``(2) Fees.--To the extent that the amount of funds 
     appropriated for a fiscal year under paragraph (1) are not 
     sufficient to carry out this section, the Secretary may use 
     up to \1/3\ of the fees collected under subsection (c) for 
     the cost of providing guarantees of bonds and notes under 
     this section before depositing the remainder of the fees into 
     the rural economic development subaccount maintained under 
     section 313(b)(2)(A).
       ``(f) Termination.--The authority provided under this 
     section shall terminate on September 30, 2006.''.
       (b) Administration of Cushion of Credit Payments Program.--
     Section 313(b)(2)(B) of the Rural Electrification Act of 1936 
     (7 U.S.C. 940c)(b)(2)(B)) is amended by inserting ``, acting 
     through the Rural Utilities Service,'' after ``Secretary''.
       (c) Administration.--
       (1) Regulations.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     promulgate regulations to carry out the amendments made by 
     this section.
       (2) Implementation.--Not later than 240 days after the date 
     of enactment of this Act, the Secretary shall implement the 
     amendment made by this section.

     SEC. 663. EXPANSION OF 911 ACCESS.

       Title III of the Rural Electrification Act of 1936 (7 
     U.S.C. 931 et seq.) is amended by adding the following:

     ``SEC. 315. EXPANSION OF 911 ACCESS.

       ``(a) In General.--Subject to such terms and conditions as 
     the Secretary may prescribe, the Secretary may make telephone 
     loans under this title to State or local governments, Indian 
     tribes (as defined in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b)), 
     or other public entities for facilities and equipment to 
     expand 911 access in underserved rural areas.
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.

TITLE VII--AGRICULTURAL RESEARCH, EDUCATION, AND EXTENSION AND RELATED 
                                MATTERS

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

     SEC. 701. DEFINITIONS.

       (a) In General.--Section 1404 of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3103) is amended--
       (1) by redesignating paragraphs (10) through (17) as 
     paragraphs (11) through (18), respectively;
       (2) by inserting after paragraph (9) the following:
       ``(10) Insular area.--The term `insular area' means--
       ``(A) the Commonwealth of Puerto Rico;
       ``(B) Guam;
       ``(C) American Samoa;
       ``(D) the Commonwealth of the Northern Mariana Islands;
       ``(E) the Federated States of Micronesia;
       ``(F) the Republic of the Marshall Islands;
       ``(G) the Republic of Palau; and
       ``(H) the Virgin Islands of the United States.''; and
       (3) by striking paragraph (13) (as so redesignated) and 
     inserting the following:
       ``(13) State.--The term `State' means--
       ``(A) a State;
       ``(B) the District of Columbia; and
       ``(C) any insular area.''.
       (b) Effect of Amendments.--The amendments made by 
     subsection (a) shall not affect any basis for distribution of 
     funds by formula (in effect on the date of enactment of this 
     Act) to--
       (1) the Federated States of Micronesia;
       (2) the Republic of the Marshall Islands; or
       (3) the Republic of Palau.

     SEC. 702. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, 
                   EDUCATION, AND ECONOMICS ADVISORY BOARD.

       Section 1408(h) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123(h)) 
     is amended by striking ``2002'' and inserting ``2006''.

[[Page S12944]]

     SEC. 703. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL 
                   SCIENCES EDUCATION.

       Section 1417 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152) is 
     amended--
       (1) in subsection (a)--
       (A) by striking ``and'' after ``economics,''; and
       (B) by inserting ``, and rural economic, community, and 
     business development'' before the period;
       (2) in subsection (b)--
       (A) in paragraph (1), by inserting ``, or in rural 
     economic, community, and business development'' before the 
     semicolon;
       (B) in paragraph (2), by inserting ``, or in rural 
     economic, community, and business development'' before the 
     semicolon;
       (C) in paragraph (3), by inserting ``, or teaching programs 
     emphasizing rural economic, community, and business 
     development'' before the semicolon;
       (D) in paragraph (4), by inserting ``, or programs 
     emphasizing rural economic, community, and business 
     development,'' after ``programs''; and
       (E) in paragraph (5), by inserting ``, or professionals in 
     rural economic, community, and business development'' before 
     the semicolon;
       (3) in subsection (d)--
       (A) in paragraph (1), by inserting ``, or in rural 
     economic, community, and business development,'' after 
     ``sciences''; and
       (B) in paragraph (2), by inserting ``, or in the rural 
     economic, community, and business development workforce,'' 
     after ``workforce''; and
       (4) in subsection (l), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 704. COMPETITIVE RESEARCH FACILITIES GRANT PROGRAM.

       The National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 is amended by inserting after section 1417 
     (7 U.S.C. 3152) the following:

     ``SEC. 1417A. COMPETITIVE RESEARCH FACILITIES GRANT PROGRAM.

       ``(a) Authority.--The Secretary may award grants to 
     eligible institutions on a competitive basis for the 
     construction, acquisition, modernization, renovation, 
     alteration, and remodeling of food and agricultural research 
     facilities such as buildings, laboratories, and other capital 
     facilities (including acquisition of fixtures and equipment) 
     in accordance with this section.
       ``(b) Eligible Institutions.--The following institutions 
     are eligible to compete for grants under subsection (a):
       ``(1) A State cooperative institution.
       ``(2) A Hispanic-serving institution.
       ``(c) Criteria for Award.--The Secretary shall award grants 
     to support the national research purposes specified in 
     section 1402 in a manner determined by the Secretary.
       ``(d) Matching.--
       ``(1) In general.--The Secretary may establish such 
     matching requirements for grants under subsection (a) as the 
     Secretary considers appropriate.
       ``(2) Form of match.--Matching requirements established by 
     the Secretary may be met with unreimbursed indirect costs and 
     in-kind contributions.
       ``(3) Evaluation preference.--The Secretary may include an 
     evaluation preference for projects for which the applicant 
     proposes funds for the direct costs of a project to meet the 
     required match.
       ``(e) Targeted Institutions.--The Secretary may determine 
     that a portion of funds made available to carry out this 
     section shall be targeted to particular eligible institutions 
     to enhance the capacity of the eligible institutions to carry 
     out research.
       ``(f) Administration.--
       ``(1) Regulations.--The Secretary shall promulgate such 
     regulations as are necessary to carry out this section.
       ``(2) States with more than 1 eligible institution.--In a 
     State having more than 1 eligible institution, the Secretary 
     shall establish procedures in accordance with the purposes 
     specified in section 1402 to ensure that the facility 
     proposals of the eligible institutions in the State provide 
     for a coordinated food and agricultural research program 
     among eligible institutions in the State.
       ``(g) Applicability of the Federal Advisory Committee 
     Act.--The Federal Advisory Committee Act (5 U.S.C. App.) and 
     title XVIII of the Food and Agriculture Act of 1977 (7 U.S.C. 
     2281 et seq.) shall not apply to a panel or board created 
     solely for the purpose of reviewing applications or proposals 
     submitted under this section.
       ``(h) Advisory Board.--In carrying out this section, the 
     Secretary shall consult with the Advisory Board.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for each of fiscal years 2002 through 
     2006.''.

     SEC. 705. GRANTS FOR RESEARCH ON THE PRODUCTION AND MARKETING 
                   OF ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM 
                   AGRICULTURAL COMMODITIES AND FOREST PRODUCTS.

       Section 1419(d) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) 
     is amended by striking ``2002'' and inserting ``2006''.

     SEC. 706. POLICY RESEARCH CENTERS.

       Section 1419A of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3155) is 
     amended--
       (1) in subsection (c)(3), by striking ``collect and 
     analyze'' and inserting ``collect, analyze, and 
     disseminate''; and
       (2) in subsection (d), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 707. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION 
                   RESEARCH PROGRAM.

       Section 1424(d) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) 
     is amended by striking ``2002'' and inserting ``2006''.

     SEC. 708. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND 
                   AGRICULTURAL RESEARCH.

       Section 1424A(d) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3174a(d)) is amended by striking ``2002'' and inserting 
     ``2006''.

     SEC. 709. NUTRITION EDUCATION PROGRAM.

       Section 1425(c)(3) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3175(c)(3)) is amended by striking ``2002'' and inserting 
     ``2006''.

     SEC. 710. ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS.

       Section 1433(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) 
     is amended in the first sentence by striking ``2002'' and 
     inserting ``2006''.

     SEC. 711. RESEARCH ON NATIONAL OR REGIONAL PROBLEMS.

       Section 1434(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) 
     is amended by striking ``2002'' and inserting ``2006''.

     SEC. 712. EDUCATION GRANTS PROGRAMS FOR HISPANIC-SERVING 
                   INSTITUTIONS.

       Section 1455(c) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) 
     is amended by striking ``2002'' and inserting ``2006''.

     SEC. 713. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL 
                   SCIENCE AND EDUCATION PROGRAMS.

       Section 1459A(c) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3292b(c)) is amended by striking ``2002'' and inserting 
     ``2006''.

     SEC. 714. INDIRECT COSTS.

       Section 1462 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310) is 
     amended--
       (1) by inserting ``(a) In General.--'' before ``Except'';
       (2) by striking ``19 percent'' and all that follows and 
     inserting ``the negotiated indirect cost rate established for 
     an institution by the cognizant Federal audit agency for the 
     institution.''; and
       (3) by adding at the end the following:
       ``(b) Exception.--Subsection (a) shall not apply to a grant 
     awarded competitively under section 9 of the Small Business 
     Act (15 U.S.C. 638).''.

     SEC. 715. RESEARCH EQUIPMENT GRANTS.

       The National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 is amended by inserting after section 1462 
     (7 U.S.C. 3310) the following:

     ``SEC. 1462A. RESEARCH EQUIPMENT GRANTS.

       ``(a) In General.--The Secretary may make competitive 
     grants for the acquisition of special purpose scientific 
     research equipment for use in the food and agricultural 
     sciences programs of eligible institutions described in 
     subsection (b).
       ``(b) Eligible Institutions.--The Secretary may make a 
     grant under this section to--
       ``(1) a college or university; or
       ``(2) a State cooperative institution.
       ``(c) Maximum Amount.--The amount of a grant made to an 
     eligible institution under this section may not exceed 
     $500,000.
       ``(d) Prohibition on Charge of Equipment as Indirect 
     Costs.--The cost of acquisition or depreciation of equipment 
     purchased with a grant under this section shall not be--
       ``(1) charged as an indirect cost against another Federal 
     grant; or
       ``(2) included as part of the indirect cost pool for 
     purposes of calculating the indirect cost rate of an eligible 
     institution.
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $50,000,000 for 
     each of fiscal years 2002 through 2006.''.

     SEC. 716. AGRICULTURAL RESEARCH PROGRAMS.

       Section 1463 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3311) is 
     amended--
       (1) in subsection (a), by striking ``$850,000,000 for each 
     of the fiscal years 1991 through 2002'' and inserting 
     ``$1,500,000,000 for each of fiscal years 2002 through 
     2006''; and
       (2) in subsection (b), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 717. EXTENSION EDUCATION.

       Section 1464 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3312) is 
     amended by striking ``$420,000,000'' and all that follows and 
     inserting the following: ``$500,000,000 for each of fiscal 
     years 2002 through 2006.''.

     SEC. 718. AVAILABILITY OF COMPETITIVE GRANT FUNDS.

       The National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 is amended by inserting after section 1469 
     (7 U.S.C. 3315) the following:

     ``SEC. 1469A. AVAILABILITY OF COMPETITIVE GRANT FUNDS.

       ``Except as otherwise provided by law, funds made available 
     to the Secretary to carry out a competitive agricultural 
     research, education, or extension grant program under this or 
     any other Act shall be

[[Page S12945]]

     available for obligation for a 2-year period beginning on 
     October 1 of the fiscal year for which the funds are made 
     available.''.

     SEC. 719. JOINT REQUESTS FOR PROPOSALS.

       (a) Purposes.--The purposes of this section are--
       (1) to reduce the duplication of administrative functions 
     relating to grant awards and administration among Federal 
     agencies conducting similar types of research, education, and 
     extension programs;
       (2) to maximize the use of peer review resources in 
     research, education, and extension programs; and
       (3) to reduce the burden on potential recipients that may 
     offer similar proposals to receive competitive grants under 
     different Federal programs in overlapping subject areas.
       (b) Authority.--The National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 is amended by 
     inserting after section 1473A (7 U.S.C. 3319a) the following:

     ``SEC. 1473B. JOINT REQUESTS FOR PROPOSALS.

       ``(a) In General.--In carrying out any competitive 
     agricultural research, education, or extension grant program 
     authorized under this or any other Act, the Secretary may 
     cooperate with 1 or more other Federal agencies (including 
     the National Science Foundation) in issuing joint requests 
     for proposals, awarding grants, and administering grants, for 
     similar or related research, education, or extension projects 
     or activities.
       ``(b) Transfer of Funds.--
       ``(1) Secretary.--The Secretary may transfer funds to, or 
     receive funds from, a cooperating Federal agency for the 
     purpose of carrying out the joint request for proposals, 
     making awards, or administering grants.
       ``(2) Cooperating agency.--The cooperating Federal agency 
     may transfer funds to, or receive funds from, the Secretary 
     for the purpose of carrying out the joint request for 
     proposals, making awards, or administering grants.
       ``(3) Limitations.--Funds transferred or received under 
     this subsection shall be--
       ``(A) used only in accordance with the laws authorizing the 
     appropriation of the funds; and
       ``(B) made available by grant only to recipients that are 
     eligible to receive the grant under the laws.
       ``(c) Administration.--
       ``(1) Secretary.--The Secretary may delegate authority to 
     issue requests for proposals, make grant awards, or 
     administer grants, in whole or in part, to a cooperating 
     Federal agency.
       ``(2) Cooperating federal agency.--The cooperating Federal 
     agency may delegate to the Secretary authority to issue 
     requests for proposals, make grant awards, or administer 
     grants, in whole or in part.
       ``(d) Regulations; Rates.--The Secretary and a cooperating 
     Federal agency may agree to make applicable to recipients of 
     grants--
       ``(1) the post-award grant administration regulations and 
     indirect cost rates applicable to recipients of grants from 
     the Secretary; or
       ``(2) the post-award grant administration regulations and 
     indirect cost rates applicable to recipients of grants from 
     the cooperating Federal agency.
       ``(e) Joint Peer Review Panels.--Subject to section 1413B, 
     the Secretary and a cooperating Federal agency may establish 
     joint peer review panels for the purpose of evaluating grant 
     proposals.''.

     SEC. 720. SUPPLEMENTAL AND ALTERNATIVE CROPS.

       Section 1473D(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3319d(a)) is amended by striking ``2002'' and inserting 
     ``2006''.

     SEC. 721. AQUACULTURE.

       Section 1477 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3324) is 
     amended in the first sentence by striking ``2002'' and 
     inserting ``2006''.

     SEC. 722. RANGELAND RESEARCH.

       Section 1483(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) 
     is amended by striking ``2002'' and inserting ``2006''.

     SEC. 723. BIOSECURITY PLANNING AND RESPONSE PROGRAMS.

       (a) In General.--The National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101 et 
     seq.) is amended by adding at the end the following:

                       ``Subtitle N--Biosecurity

            ``CHAPTER 1--AGRICULTURE INFRASTRUCTURE SECURITY

     ``SEC. 1484. DEFINITIONS.

       ``In this chapter:
       ``(1) Agricultural research facility.--The term 
     `agricultural research facility' means a facility--
       ``(A) at which agricultural research is regularly carried 
     out or proposed to be carried out; and
       ``(B) that is--
       ``(i)(I) an Agricultural Research Service facility;
       ``(II) a Forest Service facility; or
       ``(III) an Animal and Plant Health Inspection Service 
     facility;
       ``(ii) a Federal agricultural facility in the process of 
     being planned or being constructed; or
       ``(iii) any other facility under the full control of the 
     Secretary.
       ``(2) Commission.--The term `Commission' means the 
     Agriculture Infrastructure Security Commission established 
     under section 1486.
       ``(2) Fund.--The term `Fund' means the Agriculture 
     Infrastructure Security Fund Account established by section 
     1485.

     ``SEC. 1485. AGRICULTURE INFRASTRUCTURE SECURITY FUND.

       ``(a) Establishment.--There is established in the Treasury 
     of the United States an account, to be known as the 
     `Agriculture Infrastructure Security Fund Account', 
     consisting of funds appropriated to, or deposited into, the 
     Fund under subsection (c).
       ``(b) Purposes.--The purposes of the Fund are to provide 
     funding to protect and strengthen the Federal food safety and 
     agricultural infrastructure that--
       ``(1) safeguards against animal and plant diseases and 
     pests;
       ``(2) ensures the safety of the food supply; and
       ``(3) ensures sound science in support of food and 
     agricultural policy.
       ``(c) Deposits Into Fund.--
       ``(1) In general.--There are authorized to be appropriated 
     to the Fund such sums as are necessary for each of fiscal 
     years 2002 through 2006.
       ``(2) Contributions and other proceeds.--The Secretary 
     shall deposit into the Fund any funds received--
       ``(A) as proceeds from the sale of assets under subsection 
     (e); or
       ``(B) as gifts under subsection (f).
       ``(3) Availability of funds.--Amounts in the Fund shall 
     remain available until expended without further Act of 
     appropriation.
       ``(4) Additional funds.--Funds made available under 
     paragraph (1) shall be in addition to funds otherwise 
     available to the Secretary to receive gifts and bequests or 
     dispose of property (real, personal, or intangible).
       ``(d) Expenditures From Fund.--
       ``(1) In general.--Subject to paragraph (2), on request by 
     the Secretary, the Secretary of the Treasury shall transfer 
     from the Fund to the Secretary, and the Secretary shall 
     accept and use without further appropriation, such amounts as 
     the Secretary determines to be necessary to pay--
       ``(A) the costs of planning, design, development, 
     construction, acquisition, modernization, leasing, and 
     disposal of facilities, equipment, and technology used by the 
     Department in carrying out programs relating to the purposes 
     specified in subsection (b), notwithstanding the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     471 et seq.) or any other law that prescribes procedures for 
     the procurement, use, or disposal of property or services by 
     a Federal agency;
       ``(B) the costs of specialized services relating to the 
     purposes specified in subsection (b);
       ``(C) the costs of cooperative arrangements authorized to 
     be entered into (notwithstanding chapter 63 of title 31, 
     United States Code) with State, local and tribal governments, 
     and other public and private entities, to carry out programs 
     relating to the purposes specified in subsection (b); and
       ``(D) administrative costs incurred in carrying out 
     subparagraphs (A) through (C).
       ``(2) Limitations.--
       ``(A) Federal employees.--Amounts in the Fund shall not be 
     used to create any new full or part-time permanent Federal 
     employee position.
       ``(B) Administrative expenses.--Beginning in fiscal year 
     2003, not more than 1 percent of the amounts in the Fund on 
     October 1 of a fiscal year may be used in the fiscal year for 
     administrative expenses of the Secretary in carrying out the 
     activities described in paragraph (1).
       ``(e) Sale of Assets.--
       ``(1) Disposal authority.--Notwithstanding the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     471 et seq.), the Secretary by sale may dispose of all or any 
     part of any right or title in land (excluding National Forest 
     System land), facilities, or equipment in the full control of 
     the Department (including land and facilities at the 
     Beltsville Agricultural Research Center) used for the 
     purposes specified in subsection (b).
       ``(2) Disposition of proceeds.--Proceeds from any sale 
     conducted by the Secretary under paragraph (1) shall be 
     deposited into the Fund in accordance with subsection 
     (c)(2)(A).
       ``(f) Gifts.--
       ``(1) In general.--To carry out the purposes specified in 
     subsection (b), the Secretary may accept gifts and bequests 
     of funds, property (real, personal, and intangible), 
     equipment, services, and other in-kind contributions from 
     State, local, and tribal governments, colleges and 
     universities, individuals, and other public and private 
     entities.
       ``(2) Prohibited source.--
       ``(A) In general.--For the purposes of this subsection, the 
     Secretary shall not consider a State or local government, 
     Indian tribe (as defined in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b)), 
     other public entity, or college or university, to be a 
     prohibited source under any Department rule or policy that 
     prohibits the acceptance of gifts from individuals and 
     entities that do business with the Department.
       ``(B) Exception.--Notwithstanding any Department rule or 
     policy that prohibits the acceptance of gifts by the 
     Department from individuals or private entities that do 
     business with the Department or that, for any other reason, 
     are considered to be prohibited

[[Page S12946]]

     sources, the Secretary may accept gifts under this subsection 
     if the Secretary determines that it is in the public interest 
     to accept the gift.
       ``(3) Disposition of gifts.--The Secretary shall deposit 
     any gift of funds under this subsection into the Fund in 
     accordance with subsection (c)(2)(B).

     ``SEC. 1486. AGRICULTURE INFRASTRUCTURE SECURITY COMMISSION.

       ``(a) Establishment.--The Secretary shall establish a 
     commission to be known as the `Agriculture Infrastructure 
     Security Commission' to carry out the duties described in 
     subsection (f).
       ``(b) Membership.--
       ``(1) Appointment.--
       ``(A) Voting members.--
       ``(i) In general.--The Commission shall be composed of 15 
     voting members, appointed by the Secretary in accordance with 
     clause (ii), based on nominations solicited from the public.
       ``(ii) Qualifications.--The Secretary shall appoint members 
     that--

       ``(I) represent a balance of the public and private 
     sectors; and
       ``(II) have combined expertise in--

       ``(aa) facilities development, modernization, construction, 
     security, consolidation, and closure;
       ``(bb) plant diseases and pests;
       ``(cc) animal diseases and pests;
       ``(dd) food safety;
       ``(ee) biosecurity;
       ``(ff) the needs of farmers and ranchers;
       ``(gg) public health;
       ``(hh) State, local, and tribal government; and
       ``(ii) any other area related to agriculture infrastructure 
     security, as determined by the Secretary.
       ``(B) Nonvoting members.--The Commission shall be composed 
     of the following nonvoting members:
       ``(i) The Secretary.
       ``(ii) 4 representatives appointed by the Secretary of 
     Health and Human Services, 1 each from--

       ``(I) the Public Health Service;
       ``(II) the National Institutes of Health;
       ``(III) the Centers for Disease Control and Prevention; and
       ``(IV) the Food and Drug Administration.

       ``(iii) 1 representative appointed by the Attorney General.
       ``(iv) 1 representative appointed by the Director of 
     Homeland Security.
       ``(v) Not more than 4 representatives of the Department 
     appointed by the Secretary.
       ``(2) Date of appointment.--The appointment of each member 
     of the Commission shall be made not later than 90 days after 
     the date of enactment of this subtitle.
       ``(c) Term; Vacancies.--
       ``(1) Term.--The term of office of a member of the 
     Commission shall be 4 years, except that the members 
     initially appointed shall be appointed to serve staggered 
     terms (as determined by the Secretary).
       ``(2) Vacancies.--A vacancy on the Commission shall be 
     filled in the same manner as the original appointment was 
     made.
       ``(d) Meetings.--
       ``(1) In general.--The Commission shall meet at the call 
     of--
       ``(A) the Chairperson;
       ``(B) a majority of the voting members of the Commission; 
     or
       ``(C) the Secretary.
       ``(2) Federal advisory committee act.--
       ``(A) In general.--The Federal Advisory Committee Act (5 
     U.S.C. App.) and title XVIII of the Food and Agriculture Act 
     of 1977 (7 U.S.C. 2281 et seq.) shall not apply to the 
     Commission.
       ``(B) Open meetings; records.--Subject to subparagraph 
     (C)--
       ``(i) a meeting of the Commission shall be--

       ``(I) publicly announced in advance; and
       ``(II) open to the public; and

       ``(ii) the Commission shall--

       ``(I) keep detailed minutes of each meeting and other 
     appropriate records of the activities of the Commission; and
       ``(II) make the minutes and records available to the public 
     on request.

       ``(C) Exception.--When required in the interest of national 
     security--
       ``(i) the Chairperson may choose not to give public notice 
     of a meeting;
       ``(ii) the Chairperson may close all or a portion of any 
     meeting to the public, and the minutes of the meeting, or 
     portion of a meeting, shall not be made available to the 
     public; and
       ``(iii) by majority vote, the Commission may redact the 
     minutes of a meeting that was open to the public.
       ``(e) Chairperson.--The Secretary shall select a 
     Chairperson from among the voting members of the Commission.
       ``(f) Duties.--
       ``(1) In general.--The Commission shall--
       ``(A) advise the Secretary on the uses of the Fund;
       ``(B) review all agricultural research facilities for--
       ``(i) research importance; and
       ``(ii) importance to agriculture infrastructure security;
       ``(C) identify any agricultural research facility that 
     should be closed, realigned, consolidated, or modernized to 
     carry out the research agenda of the Secretary and protect 
     agriculture infrastructure security;
       ``(D) develop recommendations concerning agricultural 
     research facilities; and
       ``(E)(i) evaluate the agricultural research facilities 
     acquisition and modernization system (including acquisitions 
     by gift, grant, or any other form of agreement) used by the 
     Department; and
       ``(ii) based on the evaluation, recommend improvements to 
     the system.
       ``(2) Strategic plan.--To assist the Commission in carrying 
     out the duties described in paragraph (1), the Commission 
     shall use the 10-year strategic plan prepared by the 
     Strategic Planning Task Force established under section 4 of 
     the Research Facilities Act (7 U.S.C. 390b).
       ``(3) Report.--
       ``(A) In general.--Not later than 240 days after the date 
     of enactment of this subtitle, and each June 1 thereafter, 
     the Commission shall prepare and submit to the Secretary, the 
     Committee on Agriculture and the Committee on Appropriations 
     of the House of Representatives, and the Committee on 
     Agriculture, Nutrition, and Forestry and the Committee on 
     Appropriations of the Senate, a report on the findings and 
     recommendations under paragraph (1).
       ``(B) Written response.--Not later than 90 days after the 
     date of receipt of a report from the Commission under 
     subparagraph (A), the Secretary shall provide to the 
     Commission a written response concerning the manner and 
     extent to which the Secretary will implement the 
     recommendations in the report.
       ``(C) Public availability.--
       ``(i) In general.--Subject to clause (ii), the report 
     submitted by the Commission, and any response made by the 
     Secretary, under this subsection shall be available to the 
     public.
       ``(ii) Exception.--

       ``(I) National security.--The Commission or the Secretary 
     may determine that any report or response, or any portion of 
     a report or response, shall not be publicly released in the 
     interest of national security.
       ``(II) Freedom of information act.--On such a 
     determination, the report or response, a portion of the 
     report or response, or any records relating to the report or 
     response, shall not be released under section 552 of title 5, 
     United States Code.

       ``(g) Commission Personnel Matters.--
       ``(1) Compensation of members.--
       ``(A) Non-federal employees.--A voting member of the 
     Commission who is not a regular full-time employee of the 
     Federal Government shall, while attending meetings of the 
     Commission or otherwise engaged in the business of the 
     Commission (including travel time), be entitled to receive 
     compensation at a rate fixed by the Secretary, but not 
     exceeding the daily equivalent of the annual rate specified 
     at the time of such service under GS-15 of the General 
     Schedule established under section 5332 of title 5, United 
     States Code.
       ``(B) Travel expenses.--A voting member of the Commission 
     shall be allowed travel expenses, including per diem in lieu 
     of subsistence, at rates authorized for an employee of an 
     agency under subchapter I of chapter 57 of title 5, United 
     States Code, while away from the home or regular place of 
     business of the member in the performance of the duties of 
     the Commission.
       ``(2) Staff.--The Secretary shall provide the Commission 
     with any personnel and other resources as the Secretary 
     determines appropriate.
       ``(h) Funding.--
       ``(1) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as are necessary for each of fiscal years 2002 through 
     2006.
       ``(2) Agriculture infrastructure security fund.--For the 
     purpose of establishing the Commission, the Secretary shall 
     use such sums from the Fund as the Secretary determines to be 
     appropriate.

                ``CHAPTER 2--OTHER BIOSECURITY PROGRAMS

     ``SEC. 1487. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING 
                   AND RESPONSE.

       ``(a) Authorization of Appropriations.--In addition to 
     amounts for agricultural research, extension, and education 
     under this Act, there are authorized to be appropriated for 
     agricultural research, education, and extension activities 
     for biosecurity planning and response such sums as are 
     necessary for each of fiscal years 2002 through 2006.
       ``(b) Use of Funds.--Using any authority available to the 
     Secretary, the Secretary shall use funds made available under 
     this section to carry out agricultural research, education, 
     and extension activities (including through competitive 
     grants) necessary--
       ``(1) to reduce the vulnerability of the United States food 
     and agricultural system to chemical or biological attack;
       ``(2) to continue joint research initiatives between the 
     Agricultural Research Service, universities, and industry on 
     counterbioterrorism efforts (including continued funding of a 
     consortium in existence on the date of enactment of this 
     subtitle of which the Agricultural Research Service and 
     universities are members);
       ``(3) to make competitive grants to universities and 
     qualified research institutions for research on 
     counterbioterrorism; and
       ``(4) to counter or otherwise respond to chemical or 
     biological attack.

     ``SEC. 1488. AGRICULTURE BIOTERRORISM RESEARCH FACILITIES.

       ``(a) Definitions.--In this section:
       ``(1) Construction.--The term `construction' includes--
       ``(A) the construction of new buildings; and
       ``(B) the expansion, renovation, remodeling, and alteration 
     of existing buildings.
       ``(2) Cost.--

[[Page S12947]]

       ``(A) In general.--The term `cost' means any construction 
     cost, including architects' fees.
       ``(B) Exclusions.--The term `cost' does not include the 
     cost of--
       ``(i) acquiring land or an interest in land; or
       ``(ii) constructing any offsite improvement.
       ``(3) Eligible entity.--The term `eligible entity' means a 
     college or university that--
       ``(A) is a land grant college or university (as defined in 
     section 1404 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)); 
     and
       ``(B) as determined by the Secretary, has--
       ``(i) demonstrated expertise in the area of animal and 
     plant diseases;
       ``(ii) substantial animal and plant diagnostic 
     laboratories; and
       ``(iii) well-established working relationships with--

       ``(I) the agricultural industry; and
       ``(II) farm and commodity organizations.

       ``(b) Modernization and Construction of Facilities.--
       ``(1) In general.--To enhance the security of agriculture 
     in the United States against threats posed by bioterrorism, 
     the Secretary shall make construction grants, on a 
     competitive basis, to eligible entities.
       ``(2) Limitation on grants.--An eligible entity shall not 
     receive grant funds under this section that, in any fiscal 
     year, exceed $10,000,000.
       ``(c) Requirements for Grants.--
       ``(1) In general.--The Secretary shall make a grant to an 
     eligible entity under this section only if, with respect to 
     any facility constructed using grant funds, the eligible 
     entity--
       ``(A) submits to the Secretary, in such form, in such 
     manner, and containing such agreements, assurances, and 
     information as the Secretary may require, an application for 
     the grant;
       ``(B) is determined by the Secretary to be competent to 
     engage in the type of research for which the facility is 
     proposed to be constructed;
       ``(C) provides such assurances as the Secretary determines 
     to be satisfactory that--
       ``(i) for not less than 20 years after the date of 
     completion of the facility, the facility shall be used for 
     the purposes of the research for which the facility was 
     constructed, as described in the grant application;
       ``(ii) sufficient funds are available to pay the non-
     Federal share of the cost of constructing the facility;
       ``(iii) sufficient funds will be available, as of the date 
     of completion of the construction, for the effective use of 
     the facility for the purposes of the research for which the 
     facility was constructed; and
       ``(iv) the proposed construction--

       ``(I) will increase the capability of the eligible entity 
     to conduct research for which the facility was constructed; 
     or
       ``(II) is necessary to improve or maintain the quality of 
     the research of the eligible entity;

       ``(D) meets such reasonable qualifications as may be 
     established by the Secretary with respect to--
       ``(i) the relative scientific and technical merit of the 
     applications, and the relative effectiveness of facilities 
     proposed to be constructed, in expanding the quality of, and 
     the capacity of eligible entities to carry out, biosecurity 
     research;
       ``(ii) the quality of the research to be carried out in 
     each facility constructed;
       ``(iii) the need for the research activities to be carried 
     out within the facility as those activities relate to 
     research needs of the United States in securing, and ensuring 
     the safety of, the food supply of the United States;
       ``(iv) the age and condition of existing research 
     facilities of the eligible entity; and
       ``(v) biosafety and biosecurity requirements necessary to 
     protect facility staff, members of the public, and the food 
     supply; and
       ``(E) has demonstrated a commitment to enhancing and 
     expanding the research productivity of the eligible entity.
       ``(2) Priority.--In providing grants under this section, 
     the Secretary shall give priority to an eligible entity that, 
     as determined by the Secretary, has demonstrated expertise 
     in--
       ``(A) animal and plant disease prevention;
       ``(B) pathogen and toxin mitigation;
       ``(C) cereal disease resistance;
       ``(D) grain milling and processing;
       ``(E) livestock production practices;
       ``(F) vaccine development;
       ``(G) meat processing;
       ``(H) pathogen detection and control; or
       ``(I) food safety.
       ``(d) Amount of Grant.--The amount of a grant awarded under 
     this section shall be determined by the Secretary.
       ``(e) Federal Share.--The Federal share of the cost of any 
     construction carried out using funds from a grant provided 
     under this section shall not exceed 50 percent.
       ``(f) Guidelines.--Not later than 180 days after the date 
     of enactment of this subtitle, the Secretary shall issue 
     guidelines with respect to the provision of grants under this 
     section.
       ``(g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $100,000,000 for 
     each of fiscal years 2003 through 2005.''.
       (b) Sense of Congress on Increasing Capacity for Research 
     on Biosecurity and Animal and Plant Health Diseases.--It is 
     the sense of Congress that funding for the Agricultural 
     Research Service, the Animal and Plant Health Inspection 
     Service, and other agencies of the Department of Agriculture 
     with responsibilities for biosecurity should be increased as 
     necessary to improve the capacity of the agencies to conduct 
     research and analysis of, and respond to, bioterrorism and 
     animal and plant diseases.

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

     SEC. 731. NATIONAL GENETIC RESOURCES PROGRAM.

       Section 1635(b) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5844(b)) is amended by striking 
     ``2002'' and inserting ``2006''.

     SEC. 732. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.

       Section 1668 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5921) is amended--
       (1) by redesignating subsections (e) through (g) as 
     subsections (f) through (h), respectively; and
       (2) by inserting after subsection (d) the following:
       ``(e) Grant Priority.--In selecting projects for which 
     grants shall be made under this section, the Secretary shall 
     give priority to public and private research or educational 
     institutions and organizations the goals of which include--
       ``(1) formation of interdisciplinary teams to review or 
     conduct research on the environmental effects of the release 
     of new genetically modified agricultural products;
       ``(2) conduct of studies relating to biosafety of 
     genetically modified agricultural products;
       ``(3) evaluation of the cost and benefit for development of 
     an identity preservation system for genetically modified 
     agricultural products;
       ``(4) establishment of international partnerships for 
     research and education on biosafety issues; or
       ``(5) formation of interdisciplinary teams to renew and 
     conduct research on the nutritional enhancement and 
     environmental benefits of genetically modified agricultural 
     products.''.

     SEC. 733. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

       Section 1672 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5925) is amended
       (1) in subsection (e), by adding at the end the following:
       ``(25) Animal infectious diseases research and extension.--
       ``(A) In general.--Research and extension grants may be 
     made under this section for the purpose of developing--
       ``(i) prevention and control methodologies for animal 
     infectious diseases that impact trade, including vesicular 
     stomatitis, bovine tuberculosis, transmissible spongiform 
     encephalopathy, brucellosis, and E. coli 0157:H7 infection;
       ``(ii) laboratory tests for quicker detection of infected 
     animals and presence of diseases among herds;
       ``(iii) prevention strategies, including vaccination 
     programs; and
       ``(iv) rapid diagnostic techniques for, and evaluation of, 
     animal disease agents considered to be risks for agricultural 
     bioterrorism attack.
       ``(B) Collaboration.--Research under subparagraph (A) may 
     be conducted in collaboration with scientists from the 
     Department, other Federal agencies, universities, and 
     industry.
       ``(C) Evaluation of diagnostic techniques and vaccines.--
     Any research on or evaluation of diagnostic techniques and 
     vaccines under subparagraph (A) shall include evaluation of 
     diagnostic techniques and vaccines under field conditions in 
     countries in which the animal disease occurs.
       ``(26) Program to combat childhood obesity.--Research and 
     extension grants may be made under this section to consortia 
     of institutions of higher education that specialize in 
     obesity and nutrition research to develop and implement 
     effective strategies to reduce the incidence of childhood 
     obesity.
       ``(27) Integrated pest management.--Research and extension 
     grants may be made under this section to land grant colleges 
     and universities, other Federal agencies, and other 
     interested persons to coordinate and improve research, 
     education, and outreach on, and implementation on farms of, 
     integrated pest management.
       ``(28) Beef cattle genetics.--
       ``(A) In general.--Research and extension grants for beef 
     cattle genetics evaluation research may be made under this 
     section to institutions of higher education, or consortia of 
     institutions of higher education, that--
       ``(i) have expertise in beef cattle genetic evaluation 
     research and technology; and
       ``(ii) have been actively involved, for at least 20 years, 
     in the estimation and prediction of progeny differences for 
     publication and use by seed stock producer breed 
     associations.
       ``(B) Priority.--In making grants under subparagraph (A), 
     the Secretary shall give priority to proposals to--
       ``(i) establish and coordinate priorities for genetic 
     evaluation of domestic beef cattle;
       ``(ii) consolidate research efforts to reduce duplication 
     of effort and maximize the return to beef industry;
       ``(iii) streamline the process between the development and 
     adoption of new genetic evaluation methodologies by the 
     industry;

[[Page S12948]]

       ``(iv) identify new traits and technologies for inclusion 
     in genetic programs in order to--

       ``(I) reduce the costs of beef production; and
       ``(II) provide consumers with a high nutritional value, 
     healthy, and affordable protein source; or

       ``(v) create decisionmaking tools that incorporate the 
     increasing number of traits being evaluated and the 
     increasing amount of information from DNA technology into 
     genetic improvement programs, with the goal of optimizing the 
     overall efficiency, product quality and safety, and health of 
     the domestic beef cattle herd resource.''; and
       (2) in subsection (h), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 734. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION 
                   INITIATIVE.

       Section 1672A(g) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5925a(g)) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 735. ORGANIC AGRICULTURE RESEARCH AND EXTENSION 
                   INITIATIVE.

       Section 1672B of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5925b) is amended--
       (1) in subsection (a)--
       (A) by inserting after ``Board,'' the following: ``and the 
     National Organic Standards Board,'';
       (B) in paragraph (2), by striking ``and'' at the end;
       (C) in paragraph (3), by striking the period at the end and 
     inserting a semicolon; and
       (D) by adding at the end the following:
       ``(4) determining desirable traits for organic commodities 
     using advanced genomics;
       ``(5) pursuing classical and marker-assisted breeding for 
     publicly held varieties of crops and animals optimized for 
     organic systems;
       ``(6) identifying marketing and policy constraints on the 
     expansion of organic agriculture; and
       ``(7) conducting advanced on-farm research and development 
     that emphasizes observation of, experimentation with, and 
     innovation for working organic farms, including research 
     relating to production and to socioeconomic conditions.''; 
     and
       (2) in subsection (e), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 736. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

       Section 1673(h) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5926(h)) is amended by striking 
     ``2002'' and inserting ``2006''.

     SEC. 737. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH 
                   DISABILITIES.

       Section 1680(c)(1) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by 
     striking ``2002'' and inserting ``2006''.

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

     SEC. 741. INITIATIVE FOR FUTURE AGRICULTURE AND FOOD SYSTEMS.

       Section 401 of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7621) is amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Funding.--
       ``(1) In general.--Out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Account to carry out this section--
       ``(A) on October 1, 1998 and each October 1 thereafter 
     through October 1, 2001, $120,000,000; and
       ``(B) on October 1, 2002, and each October 1 thereafter 
     through October 1, 2005, $145,000,000.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.''; and
       (2) in subsection (e), by adding at the end the following:
       ``(3) Minority-serving institutions.--The Secretary shall 
     consider reserving, to the maximum extent practicable, 10 
     percent of the funds made available to carry out this section 
     for a fiscal year for grants to minority-serving 
     institutions.''.

     SEC. 742. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT 
                   QUALITY RESEARCH.

       Section 402(g) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7622(g)) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 743. PRECISION AGRICULTURE.

       Section 403(i)(1) of the Agricultural Research, Extension, 
     and Education Reform Act of 1998 (7 U.S.C. 7623(i)(1)) is 
     amended by striking ``2002'' and inserting ``2006''.

     SEC. 744. BIOBASED PRODUCTS.

       Section 404 of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7624) is amended--
       (1) in subsection (e)(2), by striking ``2001'' and 
     inserting ``2006''; and
       (2) in subsection (h), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 745. THOMAS JEFFERSON INITIATIVE FOR CROP 
                   DIVERSIFICATION.

       Section 405(h) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7625(h)) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 746. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION 
                   COMPETITIVE GRANTS PROGRAM.

       Section 406 of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7626) is amended--
       (1) by redesignating subsection (e) as subsection (f);
       (2) by inserting after subsection (d) the following:
       ``(e) Term of Grant.--A grant under this section shall have 
     a term of not more than 5 years.''; and
       (3) in subsection (f) (as so redesignated), by striking 
     ``2002'' and inserting ``2006''.

     SEC. 747. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT 
                   AND BARLEY CAUSED BY FUSARIUM GRAMINEARUM.

       Section 408(e) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 748. OFFICE OF PEST MANAGEMENT POLICY.

       Section 614(f) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 749. SENIOR SCIENTIFIC RESEARCH SERVICE.

       Subtitle B of title VI of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 7651 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 620. SENIOR SCIENTIFIC RESEARCH SERVICE.

       ``(a) In General.--There is established in the Department 
     of Agriculture the Senior Scientific Research Service 
     (referred to in this section as the `Service').
       ``(b) Members.--
       ``(1) In general.--Subject to paragraphs (2) through (4), 
     the Secretary shall appoint the members of the Service.
       ``(2) Qualifications.--To be eligible for appointment to 
     the Service, an individual shall--
       ``(A) have conducted outstanding research in the field of 
     agriculture or forestry;
       ``(B) have earned a doctoral level degree at an institution 
     of higher education (as defined in section 101 of the Higher 
     Education Act of 1965 (20 U.S.C. 1001)); and
       ``(C) meet qualification standards prescribed by the 
     Director of the Office of Personnel Management for 
     appointment to a position at level GS-15 of the General 
     Schedule.
       ``(3) Number.--Not more than 100 individuals may serve as 
     members of the Service at any 1 time.
       ``(4) Other requirements.--
       ``(A) In general.--Subject to subparagraph (B) and 
     subsection (d)(2), the Secretary may appoint and employ a 
     member of the Service without regard to--
       ``(i) the provisions of title 5, United States Code, 
     governing appointments in the competitive service;
       ``(ii) the provisions of subchapter I of chapter 35 of 
     title 5, United States Code, relating to retention 
     preference;
       ``(iii) the provisions of chapter 43 of title 5, United 
     States Code, relating to performance appraisal and 
     performance actions;
       ``(iv) the provisions of chapter 51 and subchapter III of 
     chapter 53 of title 5, United States Code, relating to 
     classification and General Schedule pay rates; and
       ``(v) the provisions of chapter 75 of title 5, United 
     States Code, relating to adverse actions.
       ``(B) Exception.--A member of the Service appointed and 
     employed by the Secretary under subparagraph (A) shall have 
     the same right of appeal to the Merit Systems Protection 
     Board and the same right to file a complaint with the Office 
     of Special Counsel as an employee appointed to a position at 
     level GS-15 of the General Schedule.
       ``(c) Performance Appraisal System.--The Secretary shall 
     develop a performance appraisal system for members of the 
     Service that is designed to--
       ``(1) provide for the systematic appraisal of the 
     employment performance of the members; and
       ``(2) encourage excellence in employment performance by the 
     members.
       ``(d) Compensation.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall determine the compensation of members of the Service.
       ``(2) Limitations.--The rate of pay for a member of the 
     Service shall--
       ``(A) not be less than the minimum rate payable for a 
     position at level GS-15 of the General Schedule; and
       ``(B) not be more than the rate payable for a position at 
     level I of the Executive Schedule, unless the rate is 
     approved by the President under section 5377(d)(2) of title 
     5, United States Code.
       ``(e) Retirement Contributions.--
       ``(1) In general.--On the request of a member of the 
     Service who was an employee of an institution of higher 
     education (as defined in section 101 of the Higher Education 
     Act of 1965 (20 U.S.C. 1001)) immediately prior to 
     appointment as a member of the Service and who retains the 
     right to continue to make contributions to the retirement 
     system of the institution, the Secretary may contribute an 
     amount not to exceed 10 percent of the basic pay of the 
     member to the retirement system of the institution on behalf 
     of the member.
       ``(2) Federal retirement system.--
       ``(A) In general.--Subject to subparagraph (B), a member 
     for whom a contribution is made under paragraph (1) shall 
     not, as a result of serving as a member of the Service, be 
     covered by, or earn service credit under, chapter 83 or 84 of 
     title 5, United States Code.
       ``(B) Annual leave.--Service of a member of the Service 
     described in subparagraph (A) shall be creditable for 
     determining years of

[[Page S12949]]

     service under section 6303(a) of title 5, United States Code.
       ``(f) Involuntary Separation.--
       ``(1) In general.--Subject to paragraph (2) and 
     notwithstanding the provisions of title 5, United States 
     Code, governing appointment in the competitive service, in 
     the case of an individual who is separated from the Service 
     involuntarily and without cause--
       ``(A) the Secretary may appoint the individual to a 
     position in the competitive civil service at level GS-15 of 
     the General Schedule; and
       ``(B) the appointment shall be a career appointment.
       ``(2) Excepted civil service.--In the case of an individual 
     described in paragraph (1) who immediately prior to 
     appointment as a member of the Service was not a career 
     appointee in the civil service or the Senior Executive 
     Service, the appointment of the individual under paragraph 
     (1)--
       ``(A) shall be to the excepted civil service; and
       ``(B) may not exceed a period of 2 years.''.

                     Subtitle D--Land-Grant Funding

                      CHAPTER 1--1862 INSTITUTIONS

     SEC. 751. CARRYOVER.

       Section 7 of the Hatch Act of 1887 (7 U.S.C. 361g) is 
     amended by striking subsection (c) and inserting the 
     following:
       ``(c) Carryover.--
       ``(1) In general.--The balance of any annual funds provided 
     under this Act to a State agricultural experiment station for 
     a fiscal year that remains unexpended at the end of the 
     fiscal year may be carried over for use during the following 
     fiscal year.
       ``(2) Failure to expend full allotment.--If any unexpended 
     balance carried over by a State is not expended by the end of 
     the second fiscal year, an amount equal to the unexpended 
     balance shall be deducted from the next succeeding annual 
     allotment to the State.''.

     SEC. 752. REPORTING OF TECHNOLOGY TRANSFER ACTIVITIES.

       Section 7(e) of the Hatch Act of 1887 (7 U.S.C. 361g(e)) is 
     amended by adding at the end the following:
       ``(5) The technology transfer activities conducted with 
     respect to federally-funded agricultural research.''.

     SEC. 753. COMPLIANCE WITH MULTISTATE AND INTEGRATION 
                   REQUIREMENTS.

       (a) Multistate Cooperative Extension Activities.--Section 3 
     of the Smith-Lever Act (7 U.S.C. 343) is amended by striking 
     subsection (h) and inserting the following:
       ``(h) Multistate Cooperative Extension Activities.--
       ``(1) Definition of multistate activity.--In this 
     subsection, the term `multistate activity' means a 
     cooperative extension activity in which 2 or more States 
     cooperate to resolve problems that concern more than 1 State.
       ``(2) Requirement.--
       ``(A) In general.--To receive funding under subsections (b) 
     and (c) for a fiscal year, a State must have expended on 
     multistate activities, in the preceding fiscal year, an 
     amount equivalent to not less than 25 percent of the funds 
     paid to the State under subsections (b) and (c) for the 
     preceding fiscal year.
       ``(B) Determination of amount.--In determining compliance 
     with subparagraph (A), the Secretary shall include all 
     cooperative extension funds expended by the State in the 
     preceding fiscal year, including Federal, State, and local 
     funds.
       ``(3) Reduction of percentage.--The Secretary may reduce 
     the minimum percentage required to be expended for multistate 
     activities under paragraph (2) by a State in a case of 
     hardship, unfeasibility, or other similar circumstances 
     beyond the control of the State, as determined by the 
     Secretary.
       ``(4) Plan of work.--The State shall include in the plan of 
     work of the State required under section 4 a description of 
     the manner in which the State will meet the requirements of 
     this subsection.
       ``(5) Applicability.--This subsection does not apply to 
     funds provided--
       ``(A) to a 1994 Institution (as defined in section 532 of 
     the Equity in Educational Land-Grant Status Act of 1994 (7 
     U.S.C. 301 note; Public Law 103-382)); or
       ``(B) to the Commonwealth of Puerto Rico, the Virgin 
     Islands, or Guam.''.
       (b) Integrated Research and Extension Activities.--Section 
     3 of the Hatch Act of 1887 (7 U.S.C. 361c) is amended by 
     striking subsection (i) and inserting the following:
       ``(i) Integrated Research and Extension Activities.--
       ``(1) In general.--
       ``(A) Requirement.--To receive funding under this Act and 
     subsections (b) and (c) of section 3 of the Smith-Lever Act 
     (7 U.S.C. 343) for a fiscal year, a State must have expended 
     on activities that integrate cooperative research and 
     extension (referred to in this section as `integrated 
     activities'), in the preceding fiscal year, an amount 
     equivalent to not less than 25 percent of the funds paid to 
     the State under this section and subsections (b) and (c) of 
     section 3 of the Smith-Lever Act (7 U.S.C. 343) for the 
     preceding fiscal year.
       ``(B) Determination of amount.--In determining compliance 
     with subparagraph (A), the Secretary shall include all 
     cooperative research and extension funds expended by the 
     State in the prior fiscal year, including Federal, State, and 
     local funds.
       ``(2) Reduction of percentage.--The Secretary may reduce 
     the minimum percentage required to be expended for integrated 
     activities under paragraph (1) by a State in a case of 
     hardship, unfeasibility, or other similar circumstances 
     beyond the control of the State, as determined by the 
     Secretary.
       ``(3) Plan of work.--The State shall include in the plan of 
     work of the State required under section 7 of this Act and 
     under section 4 of the Smith-Lever Act (7 U.S.C. 344), as 
     applicable, a description of the manner in which the State 
     will meet the requirements of this subsection.
       ``(4) Applicability.--This subsection does not apply to 
     funds provided--
       ``(A) to a 1994 Institution (as defined in section 532 of 
     the Equity in Educational Land-Grant Status Act of 1994 (7 
     U.S.C. 301 note; Public Law 103-382)); or
       ``(B) to the Commonwealth of Puerto Rico, the Virgin 
     Islands, or Guam.
       ``(5) Relationship to other requirements.--Funds described 
     in paragraph (1)(B) that a State uses to calculate the 
     required amount of expenditures for integrated activities 
     under paragraph (1)(A) may also be used in the same fiscal 
     year to calculate the amount of expenditures for multistate 
     activities required under subsection (c)(3) of this section 
     and section 3(h) of the Smith-Lever Act (7 U.S.C. 343(h)).''.
       (c) Effective Date.--The amendments made by this section 
     take effect on October 1, 2002.

                      CHAPTER 2--1994 INSTITUTIONS

     SEC. 754. EXTENSION AT 1994 INSTITUTIONS.

       Section 3(b) of the Smith-Lever Act (7 U.S.C. 343(b)) is 
     amended by striking paragraph (3) and inserting the 
     following:
       ``(3) Extension at 1994 institutions.--
       ``(A) In general.--There are authorized to be appropriated 
     for fiscal year 2002 and each subsequent fiscal year, for 
     payment to 1994 Institutions (as defined in section 532 of 
     the Equity in Educational Land-Grant Status Act of 1994 (7 
     U.S.C. 301 note; Public Law 103-382)), such sums as are 
     necessary for the purposes set forth in section 2, to remain 
     available until expended.
       ``(B) Distribution.--Amounts made available under 
     subparagraph (A)--
       ``(i) shall be distributed on the basis of a formula to be 
     developed and implemented by the Secretary, in consultation 
     with the 1994 Institutions; and
       ``(ii) may include payments for extension activities 
     carried out during 1 or more fiscal years.
       ``(C) Cooperative agreement.--In accordance with such 
     regulations as the Secretary may promulgate, a 1994 
     Institution may administer funds received under this 
     paragraph through a cooperative agreement with an 1862 
     Institution or an 1890 Institution (as those terms are 
     defined in section 2 of the Agricultural Research, Extension, 
     and Education Reform Act of 1998 (7 U.S.C. 7601)).''.

     SEC. 755. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 
                   1994.

       (a) Technical Amendment To Reflect Name Changes.--Section 
     532 of the Equity in Educational Land-Grant Status Act of 
     1994 (7 U.S.C. 301 note; Public Law 103-382) is amended by 
     striking paragraphs (1) through (30) and inserting the 
     following:
     ``(1) Bay Mills Community College.
     ``(2) Blackfeet Community College.
     ``(3) Cankdeska Cikana Community College.
     ``(4) College of Menominee Nation.
     ``(5) Crownpoint Institute of Technology.
     ``(6) D-Q University.
     ``(7) Dine College.
     ``(8) Dull Knife Memorial College.
     ``(9) Fond du Lac Tribal and Community College.
     ``(10) Fort Belknap College.
     ``(11) Fort Berthold Community College.
     ``(12) Fort Peck Community College.
     ``(13) Haskell Indian Nations University.
     ``(14) Institute of American Indian and Alaska Native Culture 
     and Arts Development.
     ``(15) Lac Courte Oreilles Ojibwa Community College.
     ``(16) Leech Lake Tribal College.
     ``(17) Little Big Horn College.
     ``(18) Little Priest Tribal College.
     ``(19) Nebraska Indian Community College.
     ``(20) Northwest Indian College.
     ``(21) Oglala Lakota College.
     ``(22) Salish Kootenai College.
     ``(23) Sinte Gleska University.
     ``(24) Sisseton Wahpeton Community College.
     ``(25) Si Tanka/Huron University.
     ``(26) Sitting Bull College.
     ``(27) Southwestern Indian Polytechnic Institute.
     ``(28) Stone Child College.
     ``(29) Turtle Mountain Community College.
     ``(30) United Tribes Technical College.
     ``(31) White Earth Tribal and Community College.''.
       (b) Accreditation Requirement for Research Grants.--Section 
     533(a)(3) of the Equity in Educational Land-Grant Status Act 
     of 1994 (7 U.S.C. 301 note; Public Law 103-382) is amended by 
     striking ``sections 534 and 535'' and inserting ``sections 
     534, 535, and 536''.
       (c) Land-Grant Status for 1994 Institutions.--Section 
     533(b) of the Equity in Educational Land-Grant Status Act of 
     1994 (7 U.S.C. 301 note; Public Law 103-382) is amended by 
     striking ``$4,600,000 for each of fiscal years 1996 through 
     2002'' and inserting ``such sums as are necessary for each of 
     fiscal years 2002 through 2006''.
       (d) Change of Indian Student Count Formula.--Section 
     533(c)(4)(A) of the Equity in Educational Land-Grant Status 
     Act of 1994 (7 U.S.C. 301 note; Public Law 103-382) is 
     amended by striking ``(as defined in section 390(3) of the 
     Carl D. Perkins Vocational and Applied Technology Education 
     Act (20 U.S.C.

[[Page S12950]]

     2397h(3)) for each 1994 Institution for the fiscal year'' and 
     inserting ``(as defined in section 2(a) of the Tribally 
     Controlled College or University Assistance Act of 1978 (25 
     U.S.C. 1801(a)))''.
       (e) Increase in Institutional Payments.--Section 
     534(a)(1)(A) of the Equity in Educational Land-Grant Status 
     Act of 1994 (7 U.S.C. 301 note; Public Law 103-382) is 
     amended by striking ``$50,000'' and inserting ``$100,000''.
       (f) Institutional Capacity Building Grants.--Section 535 of 
     the Equity in Educational Land-Grant Status Act of 1994 (7 
     U.S.C. 301 note; Public Law 103-382) is amended--
       (1) in subsection (b)(1), by striking ``2002'' and 
     inserting ``2006''; and
       (2) in subsection (c), by striking ``$1,700,000 for each of 
     fiscal years 1996 through 2002'' and inserting ``such sums as 
     are necessary for each of fiscal years 2002 through 2006''.
       (g) Research Grants.--Section 536(c) of the Equity in 
     Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; 
     Public Law 103-382) is amended by striking ``2002'' and 
     inserting ``2006''.

     SEC. 756. ELIGIBILITY FOR INTEGRATED GRANTS PROGRAM.

       Section 406(b) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7626(b)) is amended by 
     inserting ``and 1994 Institutions'' before ``on a competitive 
     basis''.

                      CHAPTER 3--1890 INSTITUTIONS

     SEC. 757. AUTHORIZATION PERCENTAGES FOR RESEARCH AND 
                   EXTENSION FORMULA FUNDS.

       (a) Extension.--Section 1444(a) of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3221(a)) is amended--
       (1) by striking ``(a) There'' and inserting the following:
       ``(a) Authorization of Appropriations.--
       ``(1) In general.--There'';
       (2) by striking the second sentence; and
       (3) in the third sentence, by striking ``Beginning'' 
     through ``6 per centum'' and inserting the following:
       ``(2) Minimum amount.--Beginning with fiscal year 2002, 
     there shall be appropriated under this section for each 
     fiscal year an amount that is not less than 15 percent'';
       (3) by striking ``Funds appropriated'' and inserting the 
     following:
       ``(3) Uses.--Funds appropriated''; and
       (4) by striking ``No more'' and inserting the following:
       ``(4) Carryover.--No more''.
       (b) Research.--Section 1445(a) of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3222(a)) is amended--
       (1) by striking ``(a) There'' and inserting the following:
       ``(a) Authorization of Appropriations.--
       ``(1) In general.--There'';
       (2) by striking the second sentence and inserting the 
     following:
       ``(2) Minimum amount.--Beginning with fiscal year 2002, 
     there shall be appropriated under this section for each 
     fiscal year an amount that is not less than 25 percent of the 
     total appropriations for the fiscal year under section 3 of 
     the Hatch Act of 1887 (7 U.S.C. 361c).'';
       (3) by striking ``Funds appropriated'' and inserting the 
     following:
       ``(3) Uses.--Funds appropriated'';
       (4) by striking ``The eligible'' and inserting the 
     following:
       ``(4) Coordination.--The eligible''; and
       (5) by striking ``No more'' and inserting the following:
       ``(5) Carryover.--No more''.

     SEC. 758. CARRYOVER.

       Section 1445(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222(a) 
     (as amended by section 757(b)) is amended by striking 
     paragraph (5) and inserting the following:
       ``(5) Carryover.--
       ``(A) In general.--The balance of any annual funds provided 
     to an eligible institution for a fiscal year under this 
     section that remains unexpended at the end of the fiscal year 
     may be carried over for use during the following fiscal year.
       ``(B) Failure to expend full amount.--If any unexpended 
     balance carried over by an eligible institution is not 
     expended by the end of the second fiscal year, an amount 
     equal to the unexpended balance shall be deducted from the 
     next succeeding annual allotment to the eligible 
     institution.''.

     SEC. 759. REPORTING OF TECHNOLOGY TRANSFER ACTIVITIES.

       Section 1445(c)(3) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3222(c)(3)) is amended by adding at the end the following:
       ``(F) The technology transfer activities conducted with 
     respect to federally-funded agricultural research.''.

     SEC. 760. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES 
                   FACILITIES AT 1890 LAND-GRANT COLLEGES, 
                   INCLUDING TUSKEGEE UNIVERSITY.

       Section 1447(b) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3222b(b)) is amended by striking ``$15,000,000 for each of 
     fiscal years 1996 through 2002'' and inserting ``$25,000,000 
     for each of fiscal years 2002 through 2006''.

     SEC. 761. NATIONAL RESEARCH AND TRAINING CENTENNIAL CENTERS.

       Section 1448 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222c) 
     is amended by striking ``2002'' each place it appears in 
     subsections (a)(1) and (f) and inserting ``2006''.

     SEC. 762. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND 
                   EXTENSION ACTIVITIES.

       Section 1449 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222d) 
     is amended by striking subsections (c) and (d) and inserting 
     the following:
       ``(c) Matching Formula.--
       ``(1) In general.--For each of fiscal years 2003 through 
     2006, the State shall provide matching funds from non-Federal 
     sources.
       ``(2) Amount.--The amount of the matching funds shall be 
     equal to not less than--
       ``(A) for fiscal year 2003, 60 percent of the formula funds 
     to be distributed to the eligible institution; and
       ``(B) for each of fiscal years 2004 through 2006, 110 
     percent of the amount required under this paragraph for the 
     preceding fiscal year.
       ``(d) Waivers.--Notwithstanding subsection (f), for any of 
     fiscal years 2003 through 2006, the Secretary may waive the 
     matching funds requirement under subsection (c) for any 
     amount above the level of 50 percent for an eligible 
     institution of a State if the Secretary determines that the 
     State will be unlikely to meet the matching requirement.''.

                   CHAPTER 4--LAND-GRANT INSTITUTIONS

                         Subchapter A--General

     SEC. 771. PRIORITY-SETTING PROCESS.

       Section 102(c)(1) of the Agricultural Research, Extension, 
     and Education Reform Act of 1998 (7 U.S.C. 7612(c)(1)) is 
     amended--
       (1) by striking ``establish and implement a process for 
     obtaining'' and inserting ``obtain public''; and
       (2) by striking the period at the end and inserting the 
     following: ``through a process that reflects transparency and 
     opportunity for input from producers of diverse agricultural 
     crops and diverse geographic and cultural communities.''.

     SEC. 772. TERMINATION OF CERTAIN SCHEDULE A APPOINTMENTS.

       (a) Termination.--Not later than 60 days after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     terminate each appointment listed as an excepted position 
     under schedule A of the General Schedule made by the 
     Secretary to the Federal civil service of an individual who 
     holds dual government appointments, and who carries out 
     agricultural extension work in a program at a college or 
     university eligible to receive funds, under--
       (1) the Smith-Lever Act (7 U.S.C. 341 et seq.);
       (2) section 1444 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3221); 
     or
       (3) section 208(e) of the District of Columbia Public 
     Postsecondary Education Reorganization Act (88 Stat. 1428).
       (b) Continuation of Certain Federal Benefits.--
       (1) In general.--Notwithstanding title 5, United States 
     Code, and subject to paragraph (2), an individual described 
     in subsection (a), during the period the individual is 
     employed in an agricultural extension program described in 
     subsection (a) without a break in service, shall continue 
     to--
       (A) be eligible to participate, to the same extent that the 
     individual was eligible to participate (on the day before the 
     date of enactment of this Act), in--
       (i) the Federal Employee Health Benefits Program;
       (ii) the Federal Employee Group Life Insurance Program;
       (iii) the Civil Service Retirement System;
       (iv) the Federal Employee Retirement System; and
       (v) the Thrift Savings Plan; and
       (B) receive Federal Civil Service employment credit to the 
     same extent that the individual was receiving such credit on 
     the day before the date of enactment of this Act.
       (2) Limitations.--An individual may continue to be eligible 
     for the benefits described in paragraph (1) if--
       (A) in the case of an individual who remains employed in 
     the agricultural extension program described in subsection 
     (a) on the date of the enactment of this Act, the employing 
     college or university continues to fulfill the administrative 
     and financial responsibilities (including making agency 
     contributions) associated with providing those benefits, as 
     determined by the Secretary of Agriculture; and
       (B) in the case of an individual who changes employment to 
     a second college or university described in subsection (a)--
       (i) the individual continues to work in an agricultural 
     extension program described in subsection (a), as determined 
     by the Secretary of Agriculture;
       (ii) the second college or university--

       (I) fulfills the administrative and financial 
     responsibilities (including making agency contributions) 
     associated with providing those benefits, as determined by 
     the Secretary of Agriculture; and
       (II) within 120 days before the date of the employment of 
     the individual, had employed a different individual described 
     in subsection (a) who had performed the same duties of 
     employment; and

       (iii) the individual was eligible for those benefits on the 
     day before the date of enactment of this Act.

[[Page S12951]]

         Subchapter B--Land-Grant Institutions in Insular Areas

     SEC. 775. DISTANCE EDUCATION GRANTS PROGRAM FOR INSULAR AREA 
                   LAND-GRANT INSTITUTIONS.

       The National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3101 et seq.) (as amended by 
     section 723) is amended by adding at the end the following:

         ``Subtitle 0--Land Grant Institutions in Insular Areas

     ``SEC. 1489. DISTANCE EDUCATION GRANTS FOR INSULAR AREAS.

       ``(a) In General.--The Secretary may make competitive or 
     noncompetitive grants to State cooperative institutions in 
     insular areas to strengthen the capacity of State cooperative 
     institutions to carry out distance food and agricultural 
     education programs using digital network technologies.
       ``(b) Use.--Grants made under this section shall be used--
       ``(1) to acquire the equipment, instrumentation, networking 
     capability, hardware and software, digital network 
     technology, and infrastructure necessary to teach students 
     and teachers about technology in the classroom;
       ``(2) to develop and provide educational services 
     (including faculty development) to prepare students or 
     faculty seeking a degree or certificate that is approved by 
     the State or a regional accrediting body recognized by the 
     Secretary of Education;
       ``(3) to provide teacher education, library and media 
     specialist training, and preschool and teacher aid 
     certification to individuals who seek to acquire or enhance 
     technology skills in order to use technology in the classroom 
     or instructional process;
       ``(4) to implement a joint project to provide education 
     regarding technology in the classroom with a local 
     educational agency, community-based organization, national 
     nonprofit organization, or business, including a minority 
     business or a business located in a HUBZone established under 
     section 31 of the Small Business Act (15 U.S.C. 657a); or
       ``(5) to provide leadership development to administrators, 
     board members, and faculty of eligible institutions with 
     institutional responsibility for technology education.
       ``(c) Limitation on Use of Grant Funds.--Funds provided 
     under this section shall not be used for the planning, 
     acquisition, construction, rehabilitation, or repair of a 
     building or facility.
       ``(d) Administration of Program.--The Secretary may carry 
     out this section in a manner that recognizes the different 
     needs and opportunities for State cooperative institutions in 
     the Atlantic and Pacific Oceans.
       ``(e) Matching Requirement.--
       ``(1) In general.--The Secretary may establishment a 
     requirement that a State cooperative institution receiving a 
     grant under this section shall provide matching funds from 
     non-Federal sources in an amount equal to not less than 50 
     percent of the grant.
       ``(2) Waivers.--If the Secretary establishes a matching 
     requirement under paragraph (1), the requirement shall 
     include an option for the Secretary to waive the requirement 
     for an insular area State cooperative institution for any 
     fiscal year if the Secretary determines that the institution 
     will be unlikely to meet the matching requirement for the 
     fiscal year.
       ``(f) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $4,000,000 for 
     each of fiscal years 2002 through 2006.''.

     SEC. 776. MATCHING REQUIREMENTS FOR RESEARCH AND EXTENSION 
                   FORMULA FUNDS FOR INSULAR AREA LAND-GRANT 
                   INSTITUTIONS.

       (a) Experiment Stations.--Section 3(d) of the Hatch Act of 
     1887 (7 U.S.C. 361c(d)) is amended by striking paragraph (4) 
     and inserting the following:
       ``(4) Exception for insular areas.--
       ``(A) In general.--Effective beginning for fiscal year 
     2003, in lieu of the matching funds requirement of paragraph 
     (1), the insular areas of the Commonwealth of Puerto Rico, 
     Guam, and the Virgin Islands of the United States shall 
     provide matching funds from non-Federal sources in an amount 
     equal to not less than 50 percent of the formula funds 
     distributed by the Secretary to each of the insular areas, 
     respectively, under this section.
       ``(B) Waivers.--The Secretary may waive the matching fund 
     requirement of subparagraph (A) for any fiscal year if the 
     Secretary determines that the government of the insular area 
     will be unlikely to meet the matching requirement for the 
     fiscal year.''.
       (b) Cooperative Agricultural Extension.--Section 3(e) of 
     the Smith-Lever Act (7 U.S.C. 343(e)) is amended by striking 
     paragraph (4) and inserting the following:
       ``(4) Exception for insular areas.--
       ``(A) In general.--Effective beginning for fiscal year 
     2003, in lieu of the matching funds requirement of paragraph 
     (1), the insular areas of the Commonwealth of Puerto Rico, 
     Guam, and the Virgin Islands of the United States shall 
     provide matching funds from non-Federal sources in an amount 
     equal to not less than 50 percent of the formula funds 
     distributed by the Secretary to each of the insular areas, 
     respectively, under this section.
       ``(B) Waivers.--The Secretary may waive the matching fund 
     requirement of subparagraph (A) for any fiscal year if the 
     Secretary determines that the government of the insular area 
     will be unlikely to meet the matching requirement for the 
     fiscal year.''.

                         Subtitle E--Other Laws

     SEC. 781. CRITICAL AGRICULTURAL MATERIALS.

       Section 16(a) of the Critical Agricultural Materials Act (7 
     U.S.C. 178n(a)) is amended by striking ``2002'' and inserting 
     ``2006''.

     SEC. 782. RESEARCH FACILITIES.

       Section 6(a) of the Research Facilities Act (7 U.S.C. 
     390d(a)) is amended by striking ``2002'' and inserting 
     ``2006''.

     SEC. 783. FEDERAL AGRICULTURAL RESEARCH FACILITIES.

       Section 1431 of the National Agricultural Research, 
     Extension, and Teaching Policy Act Amendments of 1985 (Public 
     Law 99-198; 99 Stat. 1556) is amended by striking ``2002'' 
     and inserting ``2006''.

     SEC. 784. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH 
                   GRANTS.

       The Competitive, Special, and Facilities Research Grant Act 
     (7 U.S.C. 450i) is amended in subsection (b)--
       (1) in paragraph (2), by striking ``in--'' and all that 
     follows and inserting ``, as those needs are determined by 
     the Secretary, in consultation with the National Agricultural 
     Research, Extension, Education, and Economics Advisory Board, 
     not later than July 1 of each fiscal year for the purposes of 
     the following fiscal year.''; and
       (2) in paragraph (10), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 785. RISK MANAGEMENT EDUCATION FOR BEGINNING FARMERS AND 
                   RANCHERS.

       (a) In General.--Section 524(a)(3) of the Federal Crop 
     Insurance Act (7 U.S.C. 1524(a)(3)) is amended by striking 
     subparagraph (A) and inserting the following:
       ``(A) Authority.--The Secretary, acting through the 
     Cooperative State Research, Education, and Extension Service, 
     shall establish a program under which competitive grants are 
     made to qualified public and private entities (including 
     land-grant colleges and universities, cooperative extension 
     services, colleges or universities, and community colleges), 
     as determined by the Secretary, for the purpose of--
       ``(i) educating producers generally about the full range of 
     risk management activities, including futures, options, 
     agricultural trade options, crop insurance, cash forward 
     contracting, debt reduction, production diversification, farm 
     resources risk reduction, and other risk management 
     strategies; or
       ``(ii) educating beginning farmers and ranchers--

       ``(I) in the areas described in clause (i); and
       ``(II) in risk management strategies, as part of programs 
     that are specifically targeted at beginning farmers and 
     ranchers.''.

       (b) Technical Correction.--Section 524(b) of the Federal 
     Crop Insurance Act (7 U.S.C. 1524(b)) is amended by 
     redesignating the second paragraph (2) and paragraph (3) as 
     paragraphs (3) and (4), respectively.

     SEC. 786. AQUACULTURE.

       Section 10 of the National Aquaculture Act of 1980 (16 
     U.S.C. 2809) is amended by striking ``2002'' each place it 
     appears and inserting ``2006''.

                      Subtitle F--New Authorities

     SEC. 791. DEFINITIONS.

       In this subtitle:
       (1) Department.--The term ``Department'' means the 
     Department of Agriculture.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.

     SEC. 792. REGULATORY AND INSPECTION RESEARCH.

       (a) Definitions.--In this section:
       (1) Inspection or regulatory agency of the department.--The 
     term ``inspection or regulatory agency of the Department'' 
     includes--
       (A) the Animal and Plant Health Inspection Service;
       (B) the Food Safety and Inspection Service;
       (C) the Grain Inspection, Packers, and Stockyards 
     Administration; and
       (D) the Agricultural Marketing Service.
       (2) Urgent applied research needs.--The term ``urgent 
     applied research needs'' includes research necessary to carry 
     out--
       (A) agricultural marketing programs;
       (B) programs to protect the animal and plant resources of 
     the United States; and
       (C) educational programs or special studies to improve the 
     safety of the food supply of the United States.
       (b) Timely, Cost-Effective Research.--To meet the urgent 
     applied research needs of inspection or regulatory agencies 
     of the Department, the Secretary--
       (1) may use a public or private source; and
       (2) shall use the most practicable source to provide 
     timely, cost-effective means of providing the research.
       (c) Conflicts of Interest.--The Secretary shall establish 
     guidelines to prevent any conflict of interest that may arise 
     if an inspection or regulatory agency of the Department 
     obtains research from any Federal agency the work or 
     technology transfer efforts of which are funded in part by an 
     industry subject to the jurisdiction of the inspection or 
     regulatory agency of the Department.
       (d) Regulations.--The Secretary may promulgate such 
     regulations as are necessary to carry out this section.

     SEC. 793. EMERGENCY RESEARCH TRANSFER AUTHORITY.

       (a) In General.--Subject to subsection (b), in addition to 
     any other authority that the Secretary may have to transfer 
     appropriated funds, the Secretary may transfer up to 2

[[Page S12952]]

     percent of any appropriation made available to an office or 
     agency of the Department for a fiscal year for agricultural 
     research, extension, marketing, animal and plant health, 
     nutrition, food safety, nutrition education, or forestry 
     programs to any other appropriation for an office or agency 
     of the Department for emergency research, extension, or 
     education activities needed to address imminent threats to 
     animal and plant health, food safety, or human nutrition, 
     including bioterrorism.
       (b) Limitations.--The Secretary may transfer funds under 
     subsection (a) only--
       (1) on a determination by the Secretary that the need is so 
     imminent that the need will not be timely met by annual, 
     supplemental, or emergency appropriations;
       (2) in an aggregate amount that does not exceed $5,000,000 
     for any fiscal year; and
       (3) with the approval of the Director of the Office of 
     Management and Budget.

     SEC. 794. REVIEW OF AGRICULTURAL RESEARCH SERVICE.

       (a) In General.--The Secretary shall conduct a review of 
     the purpose, efficiency, effectiveness, and impact on 
     agricultural research of the Agricultural Research Service.
       (b) Administration.--In conducting the review, the 
     Secretary shall use persons outside the Department, 
     including--
       (1) Federal scientists;
       (2) college and university faculty;
       (3) private and nonprofit scientists; or
       (4) other persons familiar with the role of the 
     Agricultural Research Service in conducting agricultural 
     research in the United States.
       (c) Report.--Not later than September 30, 2004, 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 review.
       (d) Funding.--The Secretary shall use to carry out this 
     section not more than 0.1 percent of the amount of 
     appropriations made available to the Agricultural Research 
     Service for each of fiscal years 2002 through 2004.

     SEC. 795. TECHNOLOGY TRANSFER FOR RURAL DEVELOPMENT.

       (a) In General.--The Secretary, acting through the Rural 
     Business-Cooperative Service and the Agricultural Research 
     Service, shall establish a program to promote the 
     availability of technology transfer opportunities of the 
     Department to rural businesses and residents.
       (b) Components of Program.--The program shall, to the 
     maximum extent practicable, include--
       (1) a website featuring information about the program and 
     technology transfer opportunities of the Department;
       (2) an annual joint program for State economic development 
     directors and Department rural development directors 
     regarding technology transfer opportunities of the 
     Agricultural Research Service and other offices and agencies 
     of the Department; and
       (3) technology transfer opportunity programs at each 
     Agricultural Research Service laboratory, conducted at least 
     biennially, which may include participation by other local 
     Federal laboratories, as appropriate.
       (c) Funding.--The Secretary shall use to carry out this 
     section--
       (1) amounts made available to the Agricultural Research 
     Service; and
       (2) amounts made available to the Rural Business-
     Cooperative Service for salaries and expenses.

     SEC. 796. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.

       (a) Definition of Beginning Farmer or Rancher.--In this 
     section, the term ``beginning farmer or rancher'' means a 
     person that--
       (1)(A) has not operated a farm or ranch; or
       (B) has operated a farm or ranch for not more than 10 
     years; and
       (2) meets such other criteria as the Secretary may 
     establish.
       (b) Program.--The Secretary shall establish a beginning 
     farmer and rancher development program to provide training, 
     education, outreach, and technical assistance initiatives for 
     beginning farmers or ranchers.
       (c) Grants.--
       (1) In general.--In carrying out this section, the 
     Secretary shall make competitive grants to support new and 
     established local and regional training, education, outreach, 
     and technical assistance initiatives for beginning farmers or 
     ranchers, including programs and services (as appropriate) 
     relating to--
       (A) mentoring, apprenticeships, and internships;
       (B) resources and referral;
       (C) assisting beginning farmers or ranchers in acquiring 
     land from retiring farmers and ranchers;
       (D) innovative farm and ranch transfer strategies;
       (E) entrepreneurship and business training;
       (F) model land leasing contracts;
       (G) financial management training;
       (H) whole farm planning;
       (I) conservation assistance;
       (J) risk management education;
       (K) diversification and marketing strategies;
       (L) curriculum development;
       (M) understanding the impact of concentration and 
     globalization;
       (N) basic livestock and crop farming practices;
       (O) the acquisition and management of agricultural credit;
       (P) environmental compliance;
       (Q) information processing; and
       (R) other similar subject areas of use to beginning farmers 
     or ranchers.
       (2) Eligibility.--To be eligible to receive a grant under 
     this subsection, the recipient shall be a collaborative 
     State, local, or regionally-based network or partnership of 
     public or private entities, which may include--
       (A) a State cooperative extension service;
       (B) a Federal or State agency;
       (C) a community-based and nongovernmental organization;
       (D) a college or university (including an institution 
     awarding an associate's degree) or foundation maintained by a 
     college or university; or
       (E) any other appropriate partner, as determined by the 
     Secretary.
       (3) Term of grant.--The term of a grant under this 
     subsection shall not exceed 3 years.
       (4) Matching requirement.--To be eligible to receive a 
     grant under this subsection, a recipient shall provide a 
     match in the form of cash or in-kind contributions in an 
     amount equal to 25 percent of the funds provided by the 
     grant.
       (5) Set-aside.--Not less than 25 percent of funds used to 
     carry out this subsection for a fiscal year shall be used to 
     support programs and services that address the needs of--
       (A) limited resource beginning farmers or ranchers (as 
     defined by the Secretary);
       (B) socially disadvantaged beginning farmers or ranchers 
     (as defined in section 355(e) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 2003(e)); and
       (C) farmworkers desiring to become farmers or ranchers.
       (6) Prohibition.--A grant made under this subsection may 
     not be used for the planning, repair, rehabilitation, 
     acquisition, or construction of a building or facility.
       (7) Administrative costs.--The Secretary shall use not more 
     than 4 percent of the funds made available to carry out this 
     section for administrative costs incurred by the Secretary in 
     carrying out this section.
       (d) Education Teams.--
       (1) In general.--In carrying out this section, the 
     Secretary shall establish beginning farmer and rancher 
     education teams to develop curricula and conduct educational 
     programs and workshops for beginning farmers or ranchers in 
     diverse geographical areas of the United States.
       (2) Curriculum.--In promoting the development of curricula, 
     the Secretary shall, to the maximum extent practicable, 
     include modules tailored to specific audiences of beginning 
     farmers or ranchers, based on crop or regional diversity.
       (3) Composition.--In establishing an education team for a 
     specific program or workshop, the Secretary shall, to the 
     maximum extent practicable--
       (A) obtain the short-term services of specialists with 
     knowledge and expertise in programs serving beginning farmers 
     or ranchers; and
       (B) use officers and employees of the Department with 
     direct experience in programs of the Department that may be 
     taught as part of the curriculum for the program or workshop.
       (4) Cooperation.--
       (A) In general.--In carrying out this subsection, the 
     Secretary shall cooperate, to the maximum extent practicable, 
     with--
       (i) State cooperative extension services;
       (ii) Federal and State agencies;
       (iii) community-based and nongovernmental organizations;
       (iv) colleges and universities (including an institution 
     awarding an associate's degree) or foundations maintained by 
     a college or university; and
       (v) other appropriate partners, as determined by the 
     Secretary.
       (B) Cooperative agreement.--Notwithstanding chapter 63 of 
     title 31, United States Code, the Secretary may enter into a 
     cooperative agreement to reflect the terms of any cooperation 
     under subparagraph (A).
       (e) Curriculum and Training Clearinghouse.--The Secretary 
     shall establish an online clearinghouse that makes available 
     to beginning farmers or ranchers education curricula and 
     training materials and programs, which may include online 
     courses for direct use by beginning farmers or ranchers.
       (f) Stakeholder Input.--In carrying out this section, the 
     Secretary shall seek stakeholder input from--
       (1) beginning farmers and ranchers;
       (2) national, State, and local organizations and other 
     persons with expertise in operating beginning farmer and 
     rancher programs; and
       (3) the Advisory Committee on Beginning Farmers and 
     Ranchers established under section 5 of the Agricultural 
     Credit Improvement Act of 1992 (7 U.S.C. 1929 note; Public 
     Law 102-554).
       (g) Participation by Other Farmers and Ranchers.--Nothing 
     in this section prohibits the Secretary from allowing farmers 
     and ranchers who are not beginning farmers or ranchers from 
     participating in programs authorized under this section to 
     the extent that the Secretary determines that such 
     participation is appropriate and will not detract from the 
     primary purpose of educating beginning farmers and ranchers.
       (h) Funding.--
       (1) Fees and contributions.--
       (A) In general.--The Secretary may--
       (i) charge a fee to cover all or part of the costs of 
     curriculum development and the delivery of programs or 
     workshops provided by--

[[Page S12953]]

       (I) a beginning farmer and rancher education team 
     established under subsection (d); or
       (II) the online clearinghouse established under subsection 
     (e); and

       (ii) accept contributions from cooperating entities under a 
     cooperative agreement entered into under subsection (d)(4)(B) 
     to cover all or part of the costs for the delivery of 
     programs or workshops by the beginning farmer and rancher 
     education teams.
       (B) Availability.--Fees and contributions received by the 
     Secretary under subparagraph (A) shall--
       (i) be deposited in the account that incurred the costs to 
     carry out this section;
       (ii) be available to the Secretary to carry out the 
     purposes of the account, without further appropriation;
       (iii) remain available until expended; and
       (iv) be in addition to any funds made available under 
     paragraph (2).
       (2) Transfers.--
       (A) In general.--Not later than 30 days after the date of 
     enactment of this Act, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary to 
     carry out this section $15,000,000, to remain available for 2 
     fiscal years.
       (B) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under subparagraph (A), 
     without further appropriation.

     SEC. 797. SENSE OF CONGRESS REGARDING DOUBLING OF FUNDING FOR 
                   AGRICULTURAL RESEARCH.

       It is the sense of Congress that--
       (1) Federal funding for food and agricultural research has 
     been essentially constant for 2 decades, putting at risk the 
     scientific base on which food and agricultural advances have 
     been made;
       (2) the resulting increase in the relative proportion of 
     private sector, industry investments in food and agricultural 
     research has led to questions about the independence and 
     objectivity of research and outreach conducted by the Federal 
     and university research sectors; and
       (3) funding for food and agricultural research should be at 
     least doubled over the next 5 fiscal years--
       (A) to restore the balance between public and private 
     sector funding for food and agricultural research; and
       (B) to maintain the scientific base on which food and 
     agricultural advances are made.

     SEC. 798. RURAL POLICY RESEARCH.

       (a) In General.--There is established in the Treasury of 
     the United States an account to be known as the ``Rural 
     Research Fund Account'' (referred to in this section as the 
     ``Account'') to provide funds for activities described in 
     subsection (c).
       (b) Funding.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Account to 
     carry out this section $15,000,000, to remain available for 2 
     fiscal years.
       (2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.
       (c) Purposes.--The Secretary shall use the funds in the 
     Account to make competitive research grants for applied and 
     outcome oriented research and policy research and analysis of 
     rural issues relating to--
       (1) rural sociology;
       (2) effects of demographic change, including aging 
     population, outmigration, and labor resources;
       (3) needs of groups of rural citizens, including senior 
     citizens, families, youth, children, and socially 
     disadvantaged individuals;
       (4) rural community development;
       (5) rural infrastructure, including water and waste, 
     community facilities, telecommunications, electricity, and 
     high-speed broadband services;
       (6) rural business development, including credit, venture 
     capital, cooperatives, value-added enterprises, new and 
     alternative markets, farm and rural enterprise formation, and 
     entrepreneurship;
       (7) farm management, including strategic planning, business 
     and marketing opportunities, risk management, natural 
     resources and environmental management, organic and 
     sustainable farming systems, and intergenerational transfer 
     strategies;
       (8) rural education and extension programs, including 
     methods of delivery, availability of resources, and use of 
     distance learning; and
       (9) rural health, including mental health, on-farm safety, 
     and food safety.
       (d) Requirements.--In making grants under this section, the 
     Secretary shall--
       (1) solicit and consider public input from persons who 
     conduct or use agricultural research, extension, education, 
     or rural development programs; and
       (2) ensure that funded proposals will provide high-quality 
     research that may be of use to public policymakers and 
     private entities in making decisions that affect development 
     in rural areas.
       (e) Eligible Grantees.--The Secretary may make a grant 
     under this section to--
       (1) an individual;
       (2) a college or university or a foundation maintained by a 
     college or university;
       (3) a State cooperative institution;
       (4) a community college;
       (5) a nonprofit organization, institution, or association;
       (6) a business association;
       (7) an agency of a State, local, or tribal government; or
       (8) a regional partnership of public and private agencies.
       (f) Term.--A grant under this section shall have a term 
     that does not exceed 5 years.
       (g) Matching Funds.--
       (1) In general.--Subject to paragraph (2), the Secretary 
     may require as a condition of the grant that the grant 
     funding be matched, in whole or in part, with matching funds 
     from a non-Federal source.
       (2) Business associations.--The Secretary shall require 
     that a grant to a business association be matched with equal 
     matching funds from a non-Federal source.
       (h) Administrative Costs.--The Secretary may use not more 
     than 4 percent of the funds made available for grants under 
     this section to pay administrative costs incurred by the 
     Secretary in carrying out this section.

     SEC. 798A. PRIORITY FOR FARMERS AND RANCHERS PARTICIPATING IN 
                   CONSERVATION PROGRAMS.

       In carrying out new on-farm research or extension programs 
     or projects authorized by this Act, an amendment made by this 
     Act, or any Act enacted after the date of enactment of this 
     Act, the Secretary shall give priority in carrying out the 
     programs or projects to using farms or ranches of farmers or 
     ranchers that participate in Federal agricultural 
     conservation programs.

     SEC. 798B. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.

       The Secretary shall ensure that segregated data on the 
     production and marketing of organic agricultural products is 
     included in the ongoing baseline of data collection regarding 
     agricultural production and marketing.

     SEC. 798C. ORGANICALLY PRODUCED PRODUCT RESEARCH AND 
                   EDUCATION.

       Not later than July 1, 2002, the Secretary, shall prepare, 
     in consultation with the Advisory Committee on Small Farms, 
     and submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate, a report on--
       (1) the implementation of the organic rule promulgated 
     under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 
     et seq.); and
       (2) the impact of the organic rule program on small farms 
     (as defined by the Advisory Committee on Small Farms).

     SEC. 798D. INTERNATIONAL ORGANIC RESEARCH COLLABORATION.

       The Secretary, acting through the Agricultural Research 
     Service (including the National Agriculture Library), shall 
     facilitate access by research and extension professionals in 
     the United States to, and the use by those professionals of, 
     organic research conducted outside the United States.

                          TITLE VIII--FORESTRY

     SEC. 801. OFFICE OF INTERNATIONAL FORESTRY.

       Section 2405(d) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 6704(d)) is amended by striking 
     ``2002'' and inserting ``2006''.

     SEC. 802. MCINTIRE-STENNIS COOPERATIVE FORESTRY RESEARCH 
                   PROGRAM.

       It is the sense of Congress to reaffirm the importance of 
     Public Law 87-88 (16 U.S.C. 582a et seq.), commonly known as 
     the ``McIntire-Stennis Cooperative Forestry Act''.

     SEC. 803. SUSTAINABLE FORESTRY OUTREACH INITIATIVE; RENEWABLE 
                   RESOURCES EXTENSION ACTIVITIES.

       (a) Sustainable Forestry Outreach Initiative.--The 
     Renewable Resources Extension Act of 1978 is amended by 
     inserting after section 5A (16 U.S.C. 1674a) the following:

     ``SEC. 5B. SUSTAINABLE FORESTRY OUTREACH INITIATIVE.

       ``The Secretary shall establish a program, to be known as 
     the `Sustainable Forestry Outreach Initiative', to educate 
     landowners concerning--
       ``(1) the value and benefits of practicing sustainable 
     forestry;
       ``(2) the importance of professional forestry advice in 
     achieving sustainable forestry objectives; and
       ``(3) the variety of public and private sector resources 
     available to assist the landowners in planning for and 
     practicing sustainable forestry.''.
       (b) Renewable Resources Extension Activities.--
       (1) Authorization of appropriations.--Section 6 of the 
     Renewable Resources Extension Act of 1978 (16 U.S.C. 1675) is 
     amended by striking the first sentence and inserting the 
     following: ``There is authorized to be appropriated to carry 
     out this Act $30,000,000 for each of fiscal years 2002 
     through 2006.''.
       (2) Termination date.--Section 8 of the Renewable Resources 
     Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95-
     306) is amended by striking ``2000'' and inserting ``2006''.

     SEC. 804. FORESTRY INCENTIVES PROGRAM.

       Section 4(j) of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2103(j)) is amended by striking ``2002'' and 
     inserting ``2006''.

     SEC. 805. SUSTAINABLE FORESTRY COOPERATIVE PROGRAM.

       The Cooperative Forestry Assistance Act of 1978 is amended 
     by inserting after section 5 (16 U.S.C. 2103a) the following:

[[Page S12954]]

     ``SEC. 5A. SUSTAINABLE FORESTRY COOPERATIVE PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Farmer or rancher.--The term `farmer or rancher' 
     means a person engaged in the production of an agricultural 
     commodity (including livestock).
       ``(2) Forestry cooperative.--The term `forestry 
     cooperative' means an association that is--
       ``(A) owned and operated by nonindustrial private forest 
     landowners; and
       ``(B) comprised of members--
       ``(i) of which at least 51 percent are farmers or ranchers; 
     and
       ``(ii) that use sustainable forestry practices on 
     nonindustrial private forest land to create a long-term, 
     sustainable income stream.
       ``(3) Nonindustrial private forest land.--The term 
     `nonindustrial private forest land' has the meaning given the 
     term `nonindustrial private forest lands' in section 5(c).
       ``(b) Establishment.--The Secretary shall establish a 
     program, to be known as the `sustainable forestry cooperative 
     program', under which the Secretary shall provide, to 
     nonprofit organizations on a competitive basis, grants to 
     establish, and develop and support, sustainable forestry 
     practices carried out by members of, forestry cooperatives.
       ``(c) Use of Funds.--
       ``(1) In general.--Subject to paragraph (2), funds from a 
     grant provided under this section shall be used for--
       ``(A) predevelopment, development, start-up, capital 
     acquisition, and marketing costs associated with a forestry 
     cooperative; or
       ``(B) the development or support of a sustainable forestry 
     practice of a member of a forestry cooperative.
       ``(2) Conditions.--
       ``(A) Development.--The Secretary shall provide funds under 
     paragraph (1)(A) only to a nonprofit organization with 
     demonstrated expertise in cooperative development, as 
     determined by the Secretary.
       ``(B) Compliance with plan.--A sustainable forestry 
     practice developed or supported through the use of funds from 
     a grant under this section shall comply with any applicable 
     standards for sustainable forestry contained in a management 
     plan that--
       ``(i) meets the requirements of section 6A(g); and
       ``(ii) is approved by the State forester (or equivalent 
     State official).
       ``(d) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this section, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     Agriculture to carry out this section $2,000,000, to remain 
     available until expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.''.

     SEC. 806. SUSTAINABLE FOREST MANAGEMENT PROGRAM.

       (a) Findings and Purposes.--
       (1) Findings.--Congress finds that--
       (A) the United States is becoming increasingly dependent on 
     nonindustrial private forest land to supply necessary market 
     commodities and nonmarket conservation values;
       (B) there is a strong demand for expanded assistance 
     programs for owners of nonindustrial private forest land 
     because the majority of the wood supply of the United States 
     comes from nonindustrial private forest land;
       (C) soil, water, and air quality, fish and wildlife 
     habitat, aesthetic values, and opportunities for outdoor 
     recreation in the United States would be maintained and 
     improved through good stewardship of nonindustrial private 
     forest land;
       (D) the products and services resulting from stewardship of 
     nonindustrial private forest land contribute to the economic, 
     social, and ecological health and diversity of rural 
     communities;
       (E) catastrophic wildfires threaten human lives, property, 
     forests, and other resources;
       (F) Federal and State cooperation in forest fire prevention 
     and control has proven effective and valuable because 
     properly managed forest stands are less susceptible to 
     catastrophic fire, as demonstrated by the catastrophic fire 
     seasons of 1998 and 2000;
       (G) owners of nonindustrial private forest land face 
     increased pressure to make that land available for 
     development and other uses, resulting in forest land loss and 
     fragmentation that reduces the ability of private forest land 
     to provide a full range of societal benefits;
       (H) complex investments in the management of long-rotation 
     forest stands, including sustainable hardwood management, are 
     often the most difficult commitments for owners of 
     nonindustrial private forest land;
       (I) the investment of a single Federal dollar in State and 
     private forestry programs is estimated to leverage, on the 
     average, $9 from State, local, and private sources; and
       (J) comprehensive, multiresource planning assistance made 
     available to each landowner before the provision of technical 
     assistance would provide an opportunity to ensure that the 
     landowner is aware of the many projects and activities 
     eligible for cost-share assistance.
       (2) Purposes.--The purposes of this section are--
       (A) to strengthen the commitment of the Secretary to 
     sustainable forest management to enhance the productivity of 
     timber, fish and wildlife habitat, soil and water quality, 
     wetland, recreational resources, and aesthetic values of 
     forest land; and
       (B) to establish a coordinated and cooperative Federal, 
     State, and local sustainable forestry program for the 
     establishment, management, maintenance, enhancement, and 
     restoration of forests on nonindustrial private forest land.
       (b) Program.--The Cooperative Forestry Assistance Act of 
     1978 is amended by inserting after section 6 (16 U.S.C. 
     2103b) the following:

     ``SEC. 6A. SUSTAINABLE FOREST MANAGEMENT PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Committee.--The term `Committee' means a State Forest 
     Stewardship Coordinating Committee established under section 
     19(b).
       ``(2) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(3) Program.--The term `program' means the sustainable 
     forest management program established under subsection 
     (b)(1).
       ``(4) Nonindustrial private forest land.--The term 
     `nonindustrial private forest land' has the meaning given the 
     term `nonindustrial private forest lands' in section 5(c).
       ``(5) Owner.--The term `owner' means an owner of 
     nonindustrial private forest land.
       ``(6) State forester.--The term `State forester' means the 
     director or other head of a State forestry agency (or an 
     equivalent State official).
       ``(b) Establishment.--
       ``(1) In general.--The Secretary shall establish a 
     sustainable forest management program to--
       ``(A) provide financial assistance to State foresters; and
       ``(B) encourage the long-term sustainability of 
     nonindustrial private forest land in the United States by 
     assisting the owners of nonindustrial private forest land, 
     through State foresters, in more actively managing the 
     nonindustrial private forest land and related resources of 
     those owners through the use of State, Federal, and private 
     sector resource management expertise, financial assistance, 
     and educational programs.
       ``(2) Coordination.--The Secretary, acting through State 
     foresters, shall implement the program--
       ``(A) in coordination with the Committees; and
       ``(B) in consultation with--
       ``(i) other Federal, State, and local natural resource 
     management agencies;
       ``(ii) institutions of higher education; and
       ``(iii) a broad range of private sector interests.
       ``(c) State Priority Plan.--
       ``(1) In general.--Subject to paragraph (3), as a condition 
     of receipt of funding under the program, a State Forester and 
     the Committee of the State shall jointly develop and submit 
     to the Secretary a 5-year plan that describes the funding 
     priorities of the State in meeting the purposes of the 
     program.
       ``(2) Public participation.--The plan submitted to the 
     Secretary under paragraph (1) shall include documentation of 
     the efforts of the State to provide for public participation 
     in the development of the plan.
       ``(3) State priorities.--The Secretary shall ensure, to the 
     maximum extent practicable, that the need for expanded 
     technical assistance programs for owners is met in the annual 
     funding priorities of each State described in paragraph (1).
       ``(d) Purposes.--The Secretary shall allocate resources of 
     the Secretary among States in accordance with subsection (j) 
     to encourage, in accordance with the plan of each State 
     described in subsection (c)--
       ``(1) the investment in practices to establish, restore, 
     protect, manage, maintain, and enhance the health and 
     productivity of the nonindustrial private forest land in the 
     United States;
       ``(2) the occurrence of afforestation, reforestation, 
     improvement of poorly stocked stands, timber stand 
     improvement, practices necessary to improve seedling growth 
     and survival, and growth enhancement practices as needed to 
     enhance and sustain the long-term productivity of timber and 
     nontimber forest resources to--
       ``(A) meet projected public demand for forest resources; 
     and
       ``(B) provide environmental benefits;
       ``(3) the protection of riparian buffers and forest 
     wetland;
       ``(4) the maintenance and enhancement of fish and wildlife 
     habitat;
       ``(5) the enhancement of soil, air, and water quality;
       ``(6) through the use of agroforestry practices, the 
     reduction of soil erosion and maintenance of soil quality;
       ``(7) the maintenance and enhancement of the forest 
     landbase;
       ``(8) the reduction of the threat of catastrophic 
     wildfires; and
       ``(9) the preservation of aesthetic quality and 
     opportunities for outdoor recreation.
       ``(e) Eligibility.--
       ``(1) Cost-share assistance.--
       ``(A) In general.--Except as provided in paragraph (2), an 
     owner shall be eligible to receive cost-share assistance from 
     a State forester under the program if the owner--

[[Page S12955]]

       ``(i) develops a management plan in accordance with 
     subsection (f) that--

       ``(I) addresses site-specific activities and practices; and
       ``(II) is approved by the State forester;

       ``(ii) agrees to implement approved activities in 
     accordance with the management plan for a period of not less 
     than 10 years, unless the State forester approves a 
     modification to the management plan; and
       ``(iii) except as provided in subparagraph (B), owns not 
     more than 1,000 acres of nonindustrial private forest land.
       ``(B) Exception for significant public benefits.--The 
     Secretary may approve the provision of cost-share assistance 
     to an owner that owns more than 1,000 but less than 5,000 
     acres of nonindustrial private forest land if the Secretary, 
     in consultation with the State forester, determines that 
     significant public benefits will accrue as a result of the 
     approval.
       ``(2) Payment for plan development.--The Secretary, acting 
     through a State forester, may provide cost-share assistance 
     to an owner to develop a management plan.
       ``(3) Limitations.--An owner shall receive no cost-share 
     assistance for management of nonindustrial private forest 
     land under this section if the owner receives cost-share 
     assistance for that land under--
       ``(A) the forestry incentives program under section 4;
       ``(B) the stewardship incentives program under section 6; 
     or
       ``(C) any conservation program administered by the 
     Secretary.
       ``(4) Rate; schedule.--Subject to paragraph (5), the 
     Secretary, in consultation with the State forester, shall 
     determine the rate and timing of cost-share payments.
       ``(5) Amount.--
       ``(A) Percentage of cost.--Subject to subparagraph (B), a 
     cost-share payment shall not exceed the lesser of an amount 
     equal to--
       ``(i) 75 percent of the total cost of implementing the 
     project or activity; or
       ``(ii) such lesser percentage of the total cost of 
     implementing the project or activity as is determined by the 
     appropriate State forester.
       ``(B) Aggregate payment limit.--The Secretary shall 
     determine the maximum aggregate amount of cost-share payments 
     that an owner may receive under this section.
       ``(f) Management Plan.--An owner that seeks to participate 
     in the program shall--
       ``(1) submit to the State forester a management plan that--
       ``(A) meets the requirements of this section; and
       ``(B)(i) is prepared by, or in consultation with, a 
     professional resource manager;
       ``(ii) identifies and describes projects and activities to 
     be carried out by the owner to protect soil, water, air, 
     range, and aesthetic quality, recreation, timber, water, 
     wetland, and fish and wildlife resources on the land in a 
     manner that is compatible with the objectives of the owner;
       ``(iii) addresses any criteria established by the 
     applicable State and the applicable Committee; and
       ``(iv)(I) at a minimum, applies to the portion of the land 
     on which any project or activity funded under the program 
     will be carried out; or
       ``(II) in a case in which a project or activity described 
     in subclause (I) may affect acreage outside the portion of 
     the land on which the project or activity is carried out, 
     applies to all land of the owner that is in forest cover and 
     that may be affected by the project or activity; and
       ``(2) agree that all projects and activities conducted on 
     the land shall be consistent with the management plan.
       ``(g) Approved Activities.--
       ``(1) In general.--The Secretary, in consultation with the 
     State forester and the appropriate Committee, shall develop 
     for each State a list of approved forest activities and 
     practices eligible for cost-share assistance that meets the 
     purposes of the program described in subsection (d).
       ``(2) Types of activities.--Approved activities and 
     practices under paragraph (1) may consist of activities and 
     practices for--
       ``(A) the establishment, management, maintenance, and 
     restoration of forests for shelterbelts, windbreaks, 
     aesthetic quality, and other conservation purposes;
       ``(B) the sustainable growth and management of forests for 
     timber production;
       ``(C) the restoration, use, and enhancement of forest 
     wetland and riparian areas;
       ``(D) the protection of water quality and watersheds 
     through--
       ``(i) the planting of trees in riparian areas; and
       ``(ii) the enhanced management and maintenance of native 
     vegetation on land vital to water quality;
       ``(E) the preservation, restoration, or development of 
     habitat for plants, fish, and wildlife;
       ``(F)(i) the control, detection, monitoring, and prevention 
     of the spread of invasive species and pests on nonindustrial 
     private forest land; and
       ``(ii) the restoration of nonindustrial private forest land 
     affected by invasive species and pests;
       ``(G) the conduct of other management activities, such as 
     the reduction of hazardous fuel use, that reduce the risks to 
     forests posed by, and that restore, recover, and mitigate the 
     damage to forests caused by, fire or any other catastrophic 
     event, as determined by the Secretary;
       ``(H) the development of management plans;
       ``(I) the acquisition by the State of permanent easements 
     to maintain forest cover and protect important forest values; 
     and
       ``(J) the conduct of other activities approved by the 
     Secretary, in consultation with the State forester and the 
     appropriate Committees.
       ``(h) Failure To Comply.--
       ``(1) In general.--The Secretary shall establish a 
     procedure to recover cost-share payments made under this 
     section in any case in which the recipient of the payment 
     fails--
       ``(A) to implement a project or activity in accordance with 
     the management plan; or
       ``(B) comply with any requirement of this section.
       ``(2) Additional authority.--The authority under paragraph 
     (1) shall be in addition to, and not in lieu of, any other 
     authority available to the Secretary.
       ``(i) Reports.--
       ``(1) Interim report.--Not later than 2\1/2\ years after 
     the date on which funds are made available to implement a 
     State priority plan under subsection (c), the State 
     implementing the plan shall submit to the Secretary an 
     interim report describing the status of projects and 
     activities funded under the plan as of that date.
       ``(2) Final report.--Not later than 5 years after the date 
     on which funds are made available to implement a State 
     priority plan under subsection (c), the State implementing 
     the plan shall submit to the Secretary a final report 
     describing the status of all projects and activities funded 
     under the plan as of that date.
       ``(j) Distribution.--
       ``(1) In general.--The Secretary, acting through State 
     foresters, shall distribute funds available for cost sharing 
     under the program based on a nationwide funding formula 
     developed under paragraph (2).
       ``(2) Formula.--In developing the formula referred to in 
     paragraph (1), the Secretary shall--
       ``(A) assess public benefits that would result from the 
     distribution; and
       ``(B) consider--
       ``(i) the total acreage of nonindustrial private forest 
     land in each State;
       ``(ii) the potential productivity of that land, as 
     determined by the Secretary;
       ``(iii) the number of owners eligible for cost sharing in 
     each State;
       ``(iv) the opportunities to enhance nontimber resources on 
     that land, including--

       ``(I) the protection of riparian buffers and forest 
     wetland;
       ``(II) the preservation of fish and wildlife habitat;
       ``(III) the enhancement of soil, air, and water quality; 
     and
       ``(IV) the preservation of aesthetic quality and 
     opportunities for outdoor recreation;

       ``(v) the anticipated demand for timber and nontimber 
     resources in each State;
       ``(vi) the need to improve forest health to minimize the 
     damaging effects of catastrophic fire, insects, disease, or 
     weather;
       ``(vii) the need and demand for agroforestry practices in 
     each State;
       ``(viii) the need to maintain and enhance the forest 
     landbase; and
       ``(ix) the need for afforestation, reforestation, and 
     timber stand improvement.
       ``(k) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this section, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     Agriculture to carry out this section $48,000,000, to remain 
     available until expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.''.

     SEC. 807. FOREST FIRE RESEARCH CENTERS.

       (a) Findings.--Congress finds that--
       (1) there is an increasing threat of fire to millions of 
     acres of forest land and rangeland throughout the United 
     States;
       (2) this threat is especially great in the interior States 
     of the western United States, where the Forest Service 
     estimates that 39,000,000 acres of National Forest System 
     land are at high risk of catastrophic wildfire;
       (3)(A) the degraded condition of forest land and rangeland 
     is often the consequence of land management practices that 
     emphasize the control and prevention of fires; and
       (B) the land management practices disrupted the occurrence 
     of frequent low-intensity fires that periodically remove 
     flammable undergrowth;
       (4) as a result of the land management practices--
       (A) some forest land and rangeland in the United States no 
     longer function naturally as ecosystems; and
       (B) drought cycles and the invasion of insects and disease 
     have resulted in vast areas of dead or dying trees, 
     overstocked stands, and the invasion of undesirable species;
       (5)(A) population movement into wildland-urban interface 
     areas exacerbate the fire danger;
       (B) the increasing number of larger, more intense fires 
     pose grave hazards to human health, safety, property, and 
     infrastructure in the areas; and
       (C) smoke from wildfires, which contain fine particulate 
     matter and other hazardous pollutants, pose substantial 
     health risks to people living in the areas;

[[Page S12956]]

       (6)(A) the budgets and resources of Federal, State, and 
     local entities supporting firefighting efforts have been 
     stretched to their limits;
       (B) according to the Comptroller General, the average cost 
     of attempting to put out fires in the interior West grew by 
     150 percent, from $134,000,000 in fiscal year 1986 to 
     $335,000,000 in fiscal year 1994; and
       (C) the costs of preparedness, including the costs of 
     maintaining a readiness force to fight fires, rose about 70 
     percent, from $189,000,000 in fiscal year 1992 to 
     $326,000,000 in fiscal year 1997;
       (7) diminishing Federal resources (including the 
     availability of personnel) have limited the ability of 
     Federal fire researchers--
       (A) to respond to management needs; and
       (B) to use technological advancements for analyzing fire 
     management costs;
       (8) the Federal fire research program is funded at 
     approximately \1/3\ of the amount that is required to address 
     emerging fire problems, resulting in the lack of a cohesive 
     strategy to address the threat of catastrophic wildfires; and
       (9) there is a critical need for cost-effective investments 
     in improved fire management technologies.
       (b) Forest Fire Research Centers.--The Forest and Rangeland 
     Renewable Resources Research Act of 1978 (16 U.S.C. 1641 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 11. FOREST FIRE RESEARCH CENTERS.

       ``(a) In General.--Subject to the availability of 
     appropriations, the Secretary of Agriculture, acting through 
     the Chief of the Forest Service (referred to in this section 
     as the `Secretary') shall establish at least 2 forest fire 
     research centers at institutions of higher education (which 
     may include research centers in existence on the date of 
     enactment of this section) that--
       ``(1) have expertise in natural resource development; and
       ``(2) are located in close proximity to other Federal 
     natural resource, forest management, and land management 
     agencies.
       ``(b) Locations.--Of the forest fire research centers 
     established under subsection (a)--
       ``(1) at least 1 center shall be located in Arizona, 
     California, New Mexico, Oregon, or Washington; and
       ``(2) at least 1 center shall be located in Colorado, 
     Idaho, Montana, Nevada, or Wyoming.
       ``(c) Duties.--At each of the forest fire research centers 
     established under subsection (a), the Secretary shall provide 
     for--
       ``(1) the conduct of integrative, interdisciplinary 
     research into the ecological, socioeconomic, and 
     environmental impact of fire control and the use of 
     management of ecosystems and landscapes to facilitate fire 
     control; and
       ``(2) the development of mechanisms to rapidly transfer new 
     fire control and management technologies to fire and land 
     managers.
       ``(d) Advisory Committee.--
       ``(1) In general.--The Secretary, in consultation with the 
     Secretary of the Interior, shall establish a committee 
     composed of fire and land managers and fire researchers to 
     determine the areas of emphasis and establish priorities for 
     research projects conducted at forest fire research centers 
     established under subsection (a).
       ``(2) Administration.--The Federal Advisory Committee Act 
     (5 U.S.C. App.) and section 102 of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 7612) 
     shall not apply to the committee established under paragraph 
     (1).
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.

     SEC. 808. WILDFIRE PREVENTION AND HAZARDOUS FUEL PURCHASE 
                   PROGRAM.

       (a) Findings.--Congress finds that--
       (1) the damage caused by wildfire disasters has been 
     equivalent in magnitude to the damage resulting from the 
     Northridge earthquake, Hurricane Andrew, and the recent 
     flooding of the Mississippi River and the Red River;
       (2) more than 20,000 communities in the United States are 
     at risk from wildfire and approximately 11,000 of those 
     communities are located near Federal land;
       (3) the accumulation of heavy forest fuel loads continues 
     to increase as a result of disease, insect infestations, and 
     drought, further increasing the risk of fire each year;
       (4) modification of forest fuel load conditions through the 
     removal of hazardous fuels would--
       (A) minimize catastrophic damage from wildfires;
       (B) reduce the need for emergency funding to respond to 
     wildfires; and
       (C) protect lives, communities, watersheds, and wildlife 
     habitat;
       (5) the hazardous fuels removed from forest land represent 
     an abundant renewable resource, as well as a significant 
     supply of biomass for biomass-to-energy facilities;
       (6) the United States should invest in technologies that 
     promote economic and entrepreneurial opportunities in 
     processing forest products removed through hazardous fuel 
     reduction activities; and
       (7) the United States should--
       (A) develop and expand markets for traditionally underused 
     wood and other biomass as an outlet for value-added excessive 
     forest fuels; and
       (B) commit resources to support planning, assessments, and 
     project reviews to ensure that hazardous fuels management is 
     accomplished expeditiously and in an environmentally sound 
     manner.
       (b) Wildfire Prevention and Hazardous Fuel Purchase 
     Program.--The Cooperative Forestry Assistance Act of 1978 is 
     amended by inserting after section 6A (as added by section 
     806(b)) the following:

     ``SEC. 6B. WILDFIRE PREVENTION AND HAZARDOUS FUEL PURCHASE 
                   PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Biomass-to-energy facility.--The term `biomass-to-
     energy facility' means a facility that uses forest biomass or 
     other biomass as a raw material to produce electric energy, 
     useful heat, or a transportation fuel.
       ``(2) Eligible community.--The term `eligible community' 
     means--
       ``(A) any town, township, municipality, or other similar 
     unit of local government (as determined by the Secretary), or 
     any area represented by a nonprofit corporation or 
     institution organized under Federal or State law to promote 
     broad-based economic development, that--
       ``(i) has a population of not more than 10,000 individuals;
       ``(ii) is located within a county in which at least 15 
     percent of the total primary and secondary labor and 
     proprietor income is derived from forestry, wood products, 
     and forest-related industries, such as recreation, forage 
     production, and tourism; and
       ``(iii) is located adjacent to public or private forest 
     land, the condition of which land the Secretary determines 
     poses a substantial present or potential hazard to the safety 
     of--

       ``(I) a forest ecosystem;
       ``(II) wildlife; or
       ``(III) in the case of a wildfire, human, community, or 
     firefighter safety, in a year in which drought conditions are 
     present; and

       ``(B) any county that is not contained within a 
     metropolitan statistical area that meets the conditions 
     described in clauses (ii) and (iii) of subparagraph (A).
       ``(3) Forest biomass.--The term `forest biomass' means fuel 
     and biomass accumulation from precommercial thinnings, slash, 
     and brush on public or private forest land.
       ``(4) Hazardous fuel.--The term `hazardous fuel' means any 
     excessive accumulation of forest biomass on public or private 
     forest land (especially land in an urban-wildland interface 
     area or in an area that is located near an eligible community 
     and designated as condition class 2 or 3 under the report of 
     the Forest Service entitled `Protecting People and 
     Sustainable Resources in Fire-Adapted Ecosystems', dated 
     October 13, 2000) that the Secretary determines poses a 
     substantial present or potential hazard--
       ``(A) to the safety of a forest ecosystem;
       ``(B) to the safety of wildlife; or
       ``(C) in the case of wildfire in a year in which drought 
     conditions are present, to human, community, or firefighter 
     safety.
       ``(5) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(6) Secretary.--The term `Secretary' means--
       ``(A) the Secretary of Agriculture (or a designee), with 
     respect to National Forest System land and private land in 
     the United States; and
       ``(B) the Secretary of the Interior (or a designee) with 
     respect to Federal land under the jurisdiction of the 
     Secretary of the Interior or an Indian tribe.
       ``(b) Hazardous Fuel Grant Program.--
       ``(1) Grants.--
       ``(A) In general.--Subject to the availability of 
     appropriations, the Secretary may make grants to persons that 
     operate biomass-to-energy facilities to offset the costs 
     incurred by those persons in purchasing hazardous fuels 
     derived from public and private forest land adjacent to 
     eligible communities.
       ``(B) Selection criteria.--The Secretary shall select 
     recipients for grants under subparagraph (A) based on--
       ``(i) planned purchases by the recipients of hazardous 
     fuels, as demonstrated by the recipient through the 
     submission to the Secretary of such assurances as the 
     Secretary may require; and
       ``(ii) the level of anticipated benefits of those purchases 
     in reducing the risk of wildfires.
       ``(2) Grant amounts.--
       ``(A) In general.--A grant under this subsection shall--
       ``(i) be based on--

       ``(I) the distance required to transport hazardous fuels to 
     a biomass-to-energy facility; and
       ``(II) the cost of removal of hazardous fuels; and

       ``(ii) be in an amount that is at least equal to the 
     product obtained by multiplying--

       ``(I) the number of tons of hazardous fuels delivered to a 
     grant recipient; by
       ``(II) an amount that is at least $5 but not more than $10 
     per ton of hazardous fuels, as determined by the Secretary 
     taking into consideration the factors described in clause 
     (i).

       ``(B) Limitation on individual grants.--
       ``(i) In general.--Except as provided in clause (ii), a 
     grant under subparagraph (A) shall not exceed $1,500,000 for 
     any biomass-to-energy facility for any fiscal year.
       ``(ii) Small biomass-to-energy facilities.--A biomass-to-
     energy facility that has an annual production of 5 megawatts 
     or less shall not be subject to the limitation under clause 
     (i).
       ``(3) Monitoring of grant recipient activities.--

[[Page S12957]]

       ``(A) In general.--As a condition of receipt of a grant 
     under this subsection, a grant recipient shall keep such 
     records as the Secretary may require, including records 
     that--
       ``(i) completely and accurately disclose the use of grant 
     funds; and
       ``(ii) describe all transactions involved in the purchase 
     of hazardous fuels.
       ``(B) Access.--On notice by the Secretary, the operator of 
     a biomass-to-energy facility that purchases and uses 
     hazardous fuels with funds from a grant under this subsection 
     shall provide the Secretary with--
       ``(i) reasonable access to the biomass-to-energy facility; 
     and
       ``(ii) an opportunity to examine the inventory and records 
     of the biomass-to-energy facility.
       ``(4) Monitoring of effect of treatments.--The Secretary 
     shall monitor Federal land from which hazardous fuels are 
     removed and sold to a biomass-to-energy facility under this 
     subsection to determine and document the reduction in fire 
     hazards on that land.
       ``(5) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $50,000,000 
     for each of fiscal years 2002 through 2006.
       ``(c) Long-Term Forest Stewardship Contracts for Hazardous 
     Fuels Removal.--
       ``(1) Annual assessment of treatment acreage.--
       ``(A) In general.--Subject to the availability of 
     appropriations, not later than March 1 of each of fiscal 
     years 2002 through 2006, the Secretary of Agriculture and the 
     Secretary of Energy shall jointly submit to Congress an 
     assessment of the number of acres of Federal forest land 
     recommended to be treated during the subsequent fiscal year 
     using stewardship end result contracts authorized by 
     paragraph (3).
       ``(B) Components.--The assessment shall--
       ``(i) be based on the treatment schedules contained in the 
     report entitled `Protecting People and Sustaining Resources 
     in Fire-Adapted Ecosystems', dated October 13, 2000, and 
     incorporated into the National Fire Plan (as identified by 
     the Secretary);
       ``(ii) identify the acreage by condition class, type of 
     treatment, and treatment year to achieve the restoration 
     goals outlined in the report within 10-, 15-, and 20-year 
     time periods;
       ``(iii) give priority to condition class 3 areas (as 
     described in subsection (a)(4)(A)), including modifications 
     in the restoration goals based on the effects of--

       ``(I) fire;
       ``(II) hazardous fuel treatments under the National Fire 
     Plan (as identified by the Secretary); or
       ``(III) updates in data;

       ``(iv) provide information relating to the type of material 
     and estimated quantities and range of sizes of material that 
     shall be included in the treatments;
       ``(v) describe the management area prescriptions in the 
     applicable land and resource management plan for the land on 
     which the treatment is recommended; and
       ``(vi) give priority to areas described in subsection 
     (a)(4)(A).
       ``(2) Funding recommendation.--The Secretary shall include 
     in the annual assessment under paragraph (1) a request for 
     funds sufficient to implement the recommendations contained 
     in the assessment using stewardship end result contracts 
     described in paragraph (3) in any case in which the Secretary 
     determines that the objectives of the National Fire Plan (as 
     identified by the Secretary) would best be accomplished 
     through forest stewardship end result contracting.
       ``(3) Stewardship end result contracting.--
       ``(A) In general.--Subject to the availability of 
     appropriations, the Secretary may enter into stewardship end 
     result contracts to implement the National Fire Plan (as 
     identified by the Secretary) on National Forest System land 
     based on the treatment schedules provided in the annual 
     assessments conducted under paragraph (1)(B)(i).
       ``(B) Period of contracts.--The contracting goals and 
     authorities described in subsections (b) through (g) of 
     section 347 of the Department of the Interior and Related 
     Agencies Appropriations Act, 1999 (commonly known as the 
     `Stewardship End Result Contracting Demonstration Project') 
     (16 U.S.C. 2104 note; Public Law 105-277), shall apply to 
     contracts entered into under this paragraph, except that the 
     period of each such contract shall not exceed 10 years.
       ``(C) Status report.--Beginning with the assessment 
     required under paragraph (1) for fiscal year 2003, the 
     Secretary shall include in the annual assessment under 
     paragraph (1) a status report of the stewardship end result 
     contracts entered into under this paragraph.
       ``(4) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this subsection 
     such sums as are necessary for each of fiscal years 2002 
     through 2006.
       ``(d) Termination of Authority.--The authority provided 
     under this section shall terminate on September 30, 2006.''.

     SEC. 809. ENHANCED COMMUNITY FIRE PROTECTION.

       (a) Findings.--Congress finds that--
       (1) the severity and intensity of wildfires have increased 
     dramatically over the past few decades as a result of past 
     fire and land management policies;
       (2) the record 2000 fire season is a prime example of what 
     can be expected if action is not taken to reduce the risk of 
     catastrophic wildfires;
       (3) wildfires threaten not only the forested resources of 
     the United States, but also the thousands of communities 
     intermingled with wildland in the wildland-urban interface;
       (4) wetland forests provide essential ecological services, 
     such as filtering pollutants, buffering important rivers and 
     estuaries, and minimizing flooding, that make the protection 
     and restoration of those forests worthy of special focus;
       (5) the National Fire Plan, if implemented to achieve 
     appropriate priorities, is the proper, coordinated, and most 
     effective means to address the issue of wildfires;
       (6) while adequate authorities exist to address the problem 
     of wildfires at the landscape level on Federal land, there is 
     limited authority to take action on most private land where 
     the largest threat to life and property lies; and
       (7) there is a significant Federal interest in enhancing 
     the protection of communities from wildfire.
       (b) Enhanced Community Fire Protection.--The Cooperative 
     Forestry Assistance Act of 1978 is amended by inserting after 
     section 10 (16 U.S.C. 2106) the following:

     ``SEC. 10A. ENHANCED COMMUNITY FIRE PROTECTION.

       ``(a) Cooperative Management Relating to Wildfire 
     Threats.--Notwithstanding section 7 of the Federal Fire 
     Prevention and Control Act of 1974 (15 U.S.C. 2206), the 
     Secretary may cooperate with State foresters and equivalent 
     State officials to--
       ``(1) assist in the prevention, control, suppression, and 
     prescribed use of fires (including through the provision of 
     financial, technical, and related assistance);
       ``(2) protect communities from wildfire threats;
       ``(3) enhance the growth and maintenance of trees and 
     forests in a manner that promotes overall forest health; and
       ``(4) ensure the continued production of all forest 
     resources, including timber, outdoor recreation 
     opportunities, wildlife habitat, and clean water, through 
     conservation of forest cover on watersheds, shelterbelts, and 
     windbreaks.
       ``(b) Community and Private Land Fire Assistance Program.--
       ``(1) In general.--The Secretary shall establish a program 
     to be known as the `community and private land fire 
     assistance program' (referred to in this section as the 
     `Program')--
       ``(A) to focus the Federal role in promoting optimal 
     firefighting efficiency at the Federal, State, and local 
     levels;
       ``(B) to provide increased assistance to Federal projects 
     that establish landscape level protection from wildfires;
       ``(C) to expand outreach and education programs concerning 
     fire prevention to homeowners and communities; and
       ``(D) to establish defensible space against wildfires 
     around the homes and property of private landowners.
       ``(2) Administration and implementation.--The Program shall 
     be administered by the Secretary and, with respect to non-
     Federal land described in paragraph (3), carried out through 
     the State forester or equivalent State official.
       ``(3) Components.--The Secretary may carry out under the 
     Program, on National Forest System land and non-Federal land 
     determined by the Secretary in consultation with State 
     foresters and Committees--
       ``(A) fuel hazard mitigation and prevention;
       ``(B) invasive species management;
       ``(C) multiresource wildfire and community protection 
     planning;
       ``(D) community and landowner education enterprises, 
     including the program known as `FIREWISE';
       ``(E) market development and expansion;
       ``(F) improved use of wood products; and
       ``(G) restoration projects.
       ``(4) Priority.--In entering into contracts to carry out 
     projects under the Program, the Secretary shall give priority 
     to contracts with local persons or entities.
       ``(c) Authority.--The authority provided under this section 
     shall be in addition to any authority provided under section 
     10.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary to carry out 
     this section $35,000,000 for each of fiscal years 2002 
     through 2006.''.

     SEC. 810. WATERSHED FORESTRY ASSISTANCE PROGRAM.

       (a) Findings.--Congress finds that--
       (1) there has been a dramatic shift in public attitudes and 
     perceptions about forest management, particularly in the 
     understanding and practice of sustainable forest management;
       (2) it is commonly recognized that proper stewardship of 
     forest land is essential to--
       (A) sustain and restore watershed health;
       (B) produce clean water; and
       (C) maintain healthy aquatic systems;
       (3) forests are increasingly important to the protection 
     and sustainability of drinking water supplies for more than 
     1/2 of the population of the United States;
       (4) forest loss and fragmentation in urbanizing areas are 
     contributing to flooding, degradation of urban stream habitat 
     and water quality, and public health concerns;
       (5) scientific evidence and public awareness with respect 
     to the manner in which forest management can positively 
     affect water quality and quantity, and the manner in which 
     trees, forests, and forestry practices (such as forest 
     buffers) can serve as solutions to water quality problems in 
     rural and urban areas, are increasing;

[[Page S12958]]

       (6) the application of forestry best management practices 
     developed at the State level has been found to greatly 
     facilitate the achievement of water quality goals;
       (7) significant efforts are underway to revisit and make 
     improvements on needed forestry best management practices;
       (8) according to the report of the Forest Service numbered 
     FS-660 and entitled ``Water and the Forest Service'', forests 
     are a requirement for maintenance of clean water because--
       (A) approximately 66 percent of the freshwater resources of 
     the United States originate on forests; and
       (B) forests cover approximately 1/3 of the land area of the 
     United States;
       (9) because almost 500,000,000 acres, or approximately 2/3, 
     of the forest land of the United States is owned by non-
     Federal entities, a significant burden is placed on private 
     forest landowners to provide or maintain the clean water 
     needed by the public for drinking, swimming, fishing, and a 
     number of other water uses;
       (10) because the decisions made by individual landowners 
     and communities will affect the ability to maintain the 
     health of rural and urban watersheds in the future, there is 
     a need to integrate forest management, conservation, 
     restoration, and stewardship in watershed management;
       (11) although water management is the primary 
     responsibility of States, the Federal Government has a 
     responsibility to promote and encourage the ability of States 
     and private forest landowners to sustain the delivery of 
     clean, abundant water from forest land;
       (12) as of the date of enactment of this Act, the 
     availability of Federal assistance to support forest 
     landowners to achieve the water goals identified in many 
     Federal laws (including regulations) is lacking; and
       (13) increased research for, education for, and technical 
     and financial assistance provided to, forest landowners and 
     communities that relate to the protection of watersheds and 
     improvement of water quality, are needed to realize the 
     expectations of the general public for clean water and 
     healthy aquatic systems.
       (b) Purposes.--The purposes of this section are to--
       (1) improve the understanding of landowners and the public 
     with respect to the relationship between water quality and 
     forest management;
       (2) encourage landowners to maintain tree cover and use 
     tree plantings and vegetative treatments as creative 
     solutions to water quality and quantity problems associated 
     with varying land uses;
       (3) enhance and complement source water protection in 
     watersheds that provide drinking water for municipalities;
       (4) establish new partnerships and collaborative watershed 
     approaches to forest management, stewardship, and protection; 
     and
       (5) provide technical and financial assistance to States to 
     deliver a coordinated program that through the provision of 
     technical, financial, and educational assistance to qualified 
     individuals and entities--
       (A) enhances State forestry best management practices 
     programs; and
       (B) protects and improves water quality on forest land.
       (c) Program.--The Cooperative Forestry Assistance Act of 
     1978 is amended by inserting after section 5A (as added by 
     section 805) the following:

     ``SEC. 5B. WATERSHED FORESTRY ASSISTANCE PROGRAM.

       ``(a) Establishment.--Subject to the availability of 
     appropriations, the Secretary shall establish a watershed 
     forestry assistance program (referred to in this section as 
     the `program') to provide to States, through State foresters 
     (as defined in section 6A), technical, financial, and related 
     assistance to--
       ``(1) expand forest stewardship capacities and activities 
     through State forestry best management practices and other 
     means at the State level; and
       ``(2) prevent water quality degradation, and address 
     watershed issues, on non-Federal forest land.
       ``(b) Watershed Forestry Education, Technical Assistance, 
     and Planning.--
       ``(1) Plan.--
       ``(A) In general.--In carrying out the program, the 
     Secretary shall cooperate with State foresters to develop a 
     plan, to be administered by the Secretary and implemented by 
     State foresters, to provide technical assistance to assist 
     States in preventing and mitigating water quality 
     degradation.
       ``(B) Participation.--In developing the plan under 
     subparagraph (A), the Secretary shall encourage participation 
     of interested members of the public (including nonprofit 
     private organizations and local watershed councils).
       ``(2) Components.--The plan described in paragraph (1) 
     shall include provisions to--
       ``(A) build and strengthen watershed partnerships focusing 
     on forest land at the national, State, regional, and local 
     levels;
       ``(B) provide State forestry best management practices and 
     water quality technical assistance directly to private 
     landowners;
       ``(C) provide technical guidance relating to water quality 
     management through forest management in degraded watersheds 
     to land managers and policymakers;
       ``(D)(i) complement State nonpoint source assessment and 
     management plans established under section 319 of the Federal 
     Water Pollution Control Act (33 U.S.C. 1329); and
       ``(ii) provide enhanced opportunities for coordination and 
     cooperation among Federal and State agencies having 
     responsibility for water and watershed management under that 
     Act; and
       ``(E) provide enhanced forest resource data and support for 
     improved implementation of State forestry best management 
     practices, including--
       ``(i) designing and conducting effectiveness and 
     implementation studies; and
       ``(ii) meeting in-State water quality assessment needs, 
     such as the development of water quality models that 
     correlate the management of forest land to water quality 
     measures and standards.
       ``(c) Watershed Forestry Cost-Share Program.--
       ``(1) Establishment.--In carrying out the program, the 
     Secretary shall establish a watershed forestry cost-share 
     program, to be administered by the Secretary and implemented 
     by State foresters, to provide grants and other assistance 
     for eligible programs and projects described in paragraph 
     (2).
       ``(2) Eligible programs and projects.--A community, 
     nonprofit group, or landowner may receive a grant or other 
     assistance under this subsection to carry out a State 
     forestry best management practices program or a watershed 
     forestry project if the program or project, as determined by 
     the Secretary--
       ``(A) is consistent with--
       ``(i) State nonpoint source assessment and management plan 
     objectives established under section 319 of the Federal Water 
     Pollution Control Act (33 U.S.C. 1329); and
       ``(ii) the cost-share requirements of this section; and
       ``(B) is designed to address critical forest stewardship, 
     watershed protection, and restoration needs of a State 
     through--
       ``(i) the use of trees and forests as solutions to water 
     quality problems in urban and agricultural areas;
       ``(ii) community-based planning, involvement, and action 
     through State, local and nonprofit partnerships;
       ``(iii) the application of and dissemination of information 
     on forestry best management practices relating to water 
     quality;
       ``(iv) watershed-scale forest management activities and 
     conservation planning; and
       ``(v) the restoration of wetland and stream side forests 
     and establishment of riparian vegetative buffers.
       ``(3) Allocation.--
       ``(A) In general.--After taking into consideration the 
     criteria described in subparagraph (B), the Secretary shall 
     allocate among States, for award by State foresters under 
     paragraph (4), the amounts made available to carry out this 
     subsection.
       ``(B) Criteria.--The criteria referred to in subparagraph 
     (A) are--
       ``(i) the number of acres of forest land, and land that 
     could be converted to forest land, in each State;
       ``(ii) the nonpoint source assessment and management plans 
     of each State, as developed under section 319 of the Federal 
     Water Pollution Control Act (33 U.S.C. 1329);
       ``(iii) the acres of wetland forests that have been lost or 
     degraded or cases in which forests may play a role in 
     restoring wetland resources;
       ``(iv) the number of non-Federal forest landowners in each 
     State; and
       ``(v) the extent to which the priorities of States are 
     designed to achieve a reasonable range of the purposes of the 
     program and, as a result, contribute to the water-related 
     goals of the United States.
       ``(4) Award of grants and assistance.--
       ``(A) In general.--In implementing the program under this 
     subsection, the State forester, in coordination with the 
     State Coordinating Committee established under section 19(b), 
     shall provide annual grants and cost-share assistance to 
     communities, nonprofit groups, and landowners to carry out 
     eligible programs and projects described in paragraph (2).
       ``(B) Application.--A community, nonprofit group, or 
     landowner that seeks to receive cost-share assistance under 
     this subsection shall submit to the State forester an 
     application, in such form and containing such information as 
     the State forester may prescribe, for the assistance.
       ``(C) Prioritization.--In awarding cost-share assistance 
     under this subsection, the Secretary shall give priority to 
     eligible programs and projects that are identified by the 
     State foresters and the State Stewardship Committees as 
     having a greater need for assistance.
       ``(D) Award.--On approval by the Secretary of an 
     application under subparagraph (B), the State forester shall 
     award to the applicant, from funds allocated to the State 
     under paragraph (3), such amount of cost-share assistance as 
     is requested in the application.
       ``(5) Cost sharing.--
       ``(A) Federal share.--The Federal share of the cost of 
     carrying out any eligible program or project under this 
     subsection shall not exceed 75 percent, of which not more 
     than 50 percent may be in the form of assistance provided 
     under this subsection.
       ``(B) Non-federal share.--The non-Federal share of the cost 
     of carrying out any eligible program or project under this 
     subsection may be provided in the form of cash, services, or 
     in-kind contributions.
       ``(d) Watershed Forester.--A State may use a portion of the 
     funds made available to the State under subsection (e) to 
     establish and fill a position of `Watershed Forester' to

[[Page S12959]]

     lead State-wide programs and coordinate watershed-level 
     projects.
       ``(e) Funding.--
       ``(1) In general.--There are authorized to be appropriated 
     to carry out this section $20,000,000 for each of fiscal 
     years 2002 through 2006.
       ``(2) Allocation.--Of the funds made available under 
     paragraph (1)--
       ``(A) 75 percent shall be used to carry out subsection (c); 
     and
       ``(B) 25 percent shall be used to carry out provisions of 
     this section other than subsection (c).''.

     SEC. 811. GENERAL PROVISIONS.

       Section 13 of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2109) is amended by striking subsection (f) 
     and inserting the following:
       ``(f) Grants, Contracts, and Other Agreements.--
       ``(1) In general.--In accordance with paragraph (2), the 
     Secretary may make such grants and enter into such contracts, 
     agreements, or other arrangements as the Secretary determines 
     are necessary to carry out this Act.
       ``(2) Assistance.--Notwithstanding any other provision of 
     this Act, the Secretary, with the concurrence of the 
     applicable State forester or equivalent State official, may 
     provide assistance under this Act directly to any public or 
     private entity, organization, or individual--
       ``(A) through a grant; or
       ``(B) by entering into a contract or cooperative 
     agreement.''.

     SEC. 812. STATE FOREST STEWARDSHIP COORDINATING COMMITTEES.

       Section 19(b) of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2113(b)) is amended--
       (1) in paragraph (1)(B)(i), by inserting ``United States 
     Fish and Wildlife Service,'' before ``Forest Service''; and
       (2) in paragraph (2)--
       (A) in subparagraph (C), by striking ``and'' at the end;
       (B) in subparagraph (D), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(E) submit to the Secretary, the Committee on Agriculture 
     of the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate, an annual 
     report that provides--
       ``(i) the list of members on the Committee described in 
     paragraph (1)(B); and
       ``(ii) for those members that may be included on the 
     Committee, but are not included because a determination that 
     it is not practicable to include the members has been made, 
     an explanation of the reasons for that determination.''.

                            TITLE IX--ENERGY

     SEC. 901. FINDINGS.

       Congress finds that--
       (1) there are many opportunities for the agricultural 
     sector and rural areas to produce renewable energy and 
     increase energy efficiency;
       (2) investments in renewable energy and energy efficiency--
       (A) enhance the energy security and independence of the 
     United States;
       (B) increase farmer and rancher income;
       (C) promote rural economic development;
       (D) provide environmental and public health benefits such 
     as cleaner air and water; and
       (E) improve electricity grid reliability, thereby reducing 
     the likelihood of blackouts and brownouts, particularly 
     during peak usage periods;
       (3) the public strongly supports renewable energy 
     generation and energy efficiency improvements as an important 
     component of a national energy strategy;
       (4)(A) the Federal Government is the country's largest 
     consumer of a vast array of products, spending in excess of 
     $200,000,000,000 per year;
       (B) purchases and use of products by the Federal Government 
     have a significant effect on the environment; and
       (C) accordingly, the Federal Government should lead the way 
     in purchasing biobased products so as to minimize 
     environmental impacts while supporting domestic producers of 
     biobased products;
       (5) the agricultural sector is a leading producer of 
     biobased products to meet domestic and international needs;
       (6) agriculture can play a significant role in the 
     development of fuel cell and hydrogen-based energy 
     technologies, which are critical technologies for a clean 
     energy future;
       (7)(A) wind energy is 1 of the fastest growing clean energy 
     technologies; and
       (B) there are tremendous economic development and 
     environmental quality benefits to be achieved by developing 
     both large-scale and small-scale wind power projects on farms 
     and in rural communities;
       (8) farm-based renewable energy generation can become one 
     of the major cash crops of the United States, improving the 
     livelihoods of hundreds of thousands of family farmers, 
     ranchers, and others and revitalizing rural communities;
       (9)(A) evidence continues to mount that increases in 
     atmospheric concentrations of greenhouse gases are 
     contributing to global climate change; and
       (B) agriculture can help in climate change mitigation by--
       (i) storing carbon in soils, plants, and forests;
       (ii) producing biofuels, chemicals, and power to replace 
     fossil fuels and petroleum-based products; and
       (iii) reducing emissions by capturing gases from animal 
     feeding operations, changing agricultural land practices, and 
     becoming more energy efficient;
       (10) because agricultural production is energy-intensive, 
     it is incumbent on the Federal Government to aid the 
     agricultural sector in reducing energy consumption and energy 
     costs;
       (11)(A) one way to help farmers, ranchers, and others 
     reduce energy use is through professional energy audits;
       (B) energy audits provide recommendations for improved 
     energy efficiency that, when acted on, offer an effective 
     means of reducing overall energy use and saving money; and
       (C) energy savings of 10 to 30 percent can typically be 
     achieved, and greater savings are often realized;
       (12) rural electric utilities are often geographically well 
     situated to develop renewable and distributed energy 
     supplies, enabling the utilities to diversify their energy 
     portfolios and afford their members or customers alternative 
     energy sources, which many such members and customers desire;
       (13) fuel cells are a highly efficient, clean, and flexible 
     technology for generating electricity from hydrogen that 
     promises to improve the environment, electricity reliability, 
     and energy security;
       (14)(A) because fuel cells can be made in any size, fuel 
     cells can be used for a wide variety of farm applications, 
     including powering farm vehicles, equipment, houses, and 
     other operations; and
       (B) much of the initial use of fuel cells is likely to be 
     in remote and off-grid applications in rural areas; and
       (15) hydrogen is a clean and flexible fuel that can play a 
     critical role in storing and transporting energy produced on 
     farms from renewable sources (including biomass, wind, and 
     solar energy).

     SEC. 902. CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT.

       The Consolidated Farm and Rural Development Act (as amended 
     by section 647) is amended by adding at the end the 
     following:

                       ``Subtitle L--Clean Energy

     ``SEC. 388A. DEFINITIONS.

       ``In this subtitle:
       ``(1) Biomass.--
       ``(A) In general.--The term `biomass' means any organic 
     material that is available on a renewable or recurring basis.
       ``(B) Inclusions.--The term `biomass' includes--
       ``(i) dedicated energy crops;
       ``(ii) trees grown for energy production;
       ``(iii) wood waste and wood residues;
       ``(iv) plants (including aquatic plants, grasses, and 
     agricultural crops);
       ``(v) residues;
       ``(vi) fibers;
       ``(vii) animal wastes and other waste materials; and
       ``(viii) fats and oils.
       ``(C) Exclusions.--The term `biomass' does not include--
       ``(i) old-growth timber (as determined by the Secretary);
       ``(ii) paper that is commonly recycled; or
       ``(iii) unsegregated garbage.
       ``(2) Renewable energy.--The term `renewable energy' means 
     energy derived from a wind, solar, biomass, geothermal, or 
     hydrogen source.
       ``(3) Rural small business.--The term `rural small 
     business' has the meaning that the Secretary shall prescribe 
     by regulation.

               ``CHAPTER 1--BIOBASED PRODUCT DEVELOPMENT

     ``SEC. 388B. BIOBASED PRODUCT PURCHASING REQUIREMENT.

       ``(a) Definitions.--In this section:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Environmental Protection Agency.
       ``(2) Biobased product.--The term `biobased product' means 
     a commercial or industrial product, as determined by the 
     Secretary (other than food or feed), that uses biological 
     products or renewable domestic agricultural materials 
     (including plant, animal, and marine materials) or forestry 
     materials.
       ``(3) Environmentally preferable.--The term 
     `environmentally preferable', with respect to a biobased 
     product, refers to a biobased product that has a lesser or 
     reduced effect on human health and the environment when 
     compared with competing nonbiobased products that serve the 
     same purpose.
       ``(b) Biobased Product Purchasing.--
       ``(1) Mandatory purchasing requirement for listed biobased 
     products.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     not later than 180 days after the date of enactment of this 
     subtitle, the head of each Federal agency shall ensure that, 
     in purchasing any product, the Federal agency purchases a 
     biobased product, rather than a comparable nonbiobased 
     product, if the biobased product is listed on the list of 
     biobased products published under subsection (c)(1).
       ``(B) Biobased product not reasonably comparable.--A 
     Federal agency shall not be required to purchase a biobased 
     product under subparagraph (A) if the purchasing employee 
     submits to the Secretary and the Administrator of the Office 
     of Federal Procurement Policy a written determination that 
     the biobased product is not reasonably comparable to 
     nonbiobased products in price, performance, or availability.
       ``(C) Conflicting requirements.--The Secretary and the 
     Administrator shall jointly promulgate regulations with which 
     Federal agencies shall comply in cases of a conflict

[[Page S12960]]

     between the biobased product purchasing requirement under 
     subparagraph (A) and a purchasing requirement under any other 
     provision of law.
       ``(2) Purchasing of nonlisted biobased products.--The head 
     of each Federal agency is encouraged to purchase, to the 
     maximum extent practicable, available biobased products that 
     are not listed on the list of biobased products published 
     under subsection (c)(1) when the Federal agency is not 
     required to purchase a biobased product that is on the list.
       ``(c) Administrative Action.--
       ``(1) List of biobased products.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of this subtitle, and annually thereafter, the 
     Secretary, in consultation with the Administrator and the 
     Director of the National Institute of Standards and 
     Technology, shall publish a list of biobased products.
       ``(B) Environmentally preferable biobased products.--The 
     Secretary shall not include on the list under paragraph (1) 
     biobased products that are not environmentally preferable, as 
     determined by the Secretary.
       ``(C) Grants.--The Secretary may award grants to, or enter 
     into contracts or cooperative agreements with, eligible 
     persons, businesses, or institutions (as determined by the 
     Secretary) to assist in collecting data concerning the 
     evaluation of and lifecycle analyses of biobased products for 
     use in making the determinations necessary to carry out this 
     paragraph.
       ``(2) Guidance.--Not later than 240 days after the date of 
     enactment of this subtitle, the Office of Federal Procurement 
     Policy and Federal Acquisition Regulation Council shall make 
     the Federal Acquisition Regulation consistent with subsection 
     (b).
       ``(d) Education and Outreach Program.--The Secretary, in 
     cooperation with the Defense Acquisition University and the 
     Federal Acquisition Institute, shall conduct education 
     programs for all Federal procurement officers regarding 
     biobased products and the requirements of subsection (b).
       ``(e) Labeling.--
       ``(1) In general.--The Secretary shall develop a program, 
     similar to the Energy Star program of the Department of 
     Energy and the Environmental Protection Agency, under which 
     the Secretary authorizes producers of environmentally 
     preferable biobased products to use a label that identifies 
     the products as environmentally preferable biobased products.
       ``(2) Environmentally preferable biobased products.--The 
     Secretary shall monitor and take appropriate action regarding 
     the use of labels under paragraph (1) to ensure that the 
     biobased products using the labels do not include biobased 
     products that are not environmentally preferable, as 
     determined by the Secretary.
       ``(3) Contracting.--In carrying out paragraph (1), the 
     Secretary may contract with appropriate entities with 
     expertise in product labeling and standard setting.
       ``(f) Goal.--It shall be the goal of each Federal agency 
     for each fiscal year to purchase biobased products of an 
     aggregate value that is not less than 5 percent of the 
     aggregate value of all products purchased by the Federal 
     agency during the preceding fiscal year.
       ``(g) Reports.--As soon as practicable after the end of 
     each fiscal year, the Secretary and the Office of Federal 
     Procurement Policy shall jointly submit to Congress an annual 
     report that, for the fiscal year, describes the extent of--
       ``(1) compliance by each Federal agency with subsection 
     (b); and
       ``(2) the success of each Federal agency in achieving the 
     goal established under subsection (f).
       ``(h) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this subtitle, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary to 
     carry out this section $2,000,000, to remain available until 
     expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.

     ``SEC. 388C. BIOREFINERY DEVELOPMENT GRANTS.

       ``(a) Purpose.--The purpose of this section is to assist in 
     the development of new and emerging technologies for the 
     conversion of biomass into petroleum substitutes, so as to--
       ``(1) develop transportation and other fuels and chemicals 
     from renewable sources;
       ``(2) reduce the dependence of the United States on 
     imported oil;
       ``(3) reduce greenhouse gas emissions;
       ``(4) diversify markets for raw agricultural and forestry 
     products; and
       ``(5) create jobs and enhance the economic development of 
     the rural economy.
       ``(b) Definitions.--In this section:
       ``(1) Advisory committee.--The term `Advisory Committee' 
     means the Biomass Research and Development Technical Advisory 
     Committee established by section 306 of the Biomass Research 
     and Development Act of 2000 (7 U.S.C. 7624 note; Public Law 
     106-224).
       ``(2) Biorefinery.--The term `biorefinery' means equipment 
     and processes that--
       ``(A) convert biomass into bioenergy fuels and chemicals; 
     and
       ``(B) may produce electricity as a byproduct.
       ``(3) Board.--The term `Board' means the Biomass Research 
     and Development Board established by section 305 of the 
     Biomass Research and Development Act of 2000 (7 U.S.C. 7624 
     note; Public Law 106-224).
       ``(4) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(c) Grants.--The Secretary shall award grants to eligible 
     entities to assist in paying the cost of development and 
     construction of biorefineries to carry out projects to 
     demonstrate the commercial viability of 1 or more processes 
     for converting biomass to fuels or chemicals.
       ``(d) Eligible Entities.--A corporation, farm cooperative, 
     association of farmers, national laboratory, university, 
     State energy agency or office, Indian tribe, or consortium 
     comprised of any of those entities shall be eligible to 
     receive a grant under subsection (c).
       ``(e) Competitive Basis for Awards.--
       ``(1) In general.--The Secretary shall award grants under 
     subsection (c) on a competitive basis in consultation with 
     the Board and Advisory Committee.
       ``(2) Selection criteria.--
       ``(A) In general.--The Secretary shall select projects to 
     receive grants under subsection (c) based on--
       ``(i) the likelihood that the projects will demonstrate the 
     commercial viability of a process for converting biomass to 
     fuels or chemicals; and
       ``(ii) the likelihood that the projects will produce 
     electricity.
       ``(B) Factors.--The factors to be considered under 
     subparagraph (A) shall include--
       ``(i) the potential market for the product or products;
       ``(ii) the quantity of petroleum the product will displace;
       ``(iii) the level of financial participation by the 
     applicants;
       ``(iv) the availability of adequate funding from other 
     sources;
       ``(v) the beneficial impact on resource conservation and 
     the environment;
       ``(vi) the participation of producer associations and 
     cooperatives;
       ``(vii) the timeframe in which the project will be 
     operational;
       ``(viii) the potential for rural economic development; and
       ``(ix) the participation of multiple eligible entities.
       ``(f) Cost Sharing.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     amount of a grant for a project awarded under subsection (c) 
     shall not exceed 30 percent of the cost of the project.
       ``(2) Increased grant amount.--The Secretary may increase 
     the amount of a grant for a project under subsection (c) to 
     not more than 50 percent in the case of a project that the 
     Secretary finds particularly meritorious.
       ``(3) Form of grantee share.--
       ``(A) In general.--The grantee share of the cost of a 
     project may be made in the form of cash or the provision of 
     services, material, or other in-kind contributions.
       ``(B) Limitation.--The amount of the grantee share of the 
     cost of a project that is made in the form of the provision 
     of services, material, or other in-kind contributions shall 
     not exceed 25 percent of the amount of the grantee share 
     determined under paragraph (1).
       ``(g) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this subtitle, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary to 
     carry out this section $15,000,000, to remain available until 
     expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.

     ``SEC. 388D. BIODIESEL FUEL EDUCATION PROGRAM.

       ``(a) Findings.--Congress finds that--
       ``(1) biodiesel fuel use can help reduce greenhouse gas 
     emissions and public health risks associated with air 
     pollution;
       ``(2) biodiesel fuel use enhances energy security by 
     reducing petroleum consumption;
       ``(3) biodiesel fuel is nearing the transition from the 
     research and development phase to commercialization;
       ``(4) biodiesel fuel is still relatively unknown to the 
     public and even to diesel fuel users; and
       ``(5) education of, and provision of technical support to, 
     current and future biodiesel fuel users will be critical to 
     the widespread use of biodiesel fuel.
       ``(b) Establishment.--The Secretary shall, under such terms 
     and conditions as are appropriate, offer 1 or more 
     competitive grants to eligible entities to educate Federal, 
     State, regional, and local government entities and private 
     entities that operate vehicle fleets, other interested 
     entities (as determined by the Secretary), and the public 
     about the benefits of biodiesel fuel use.
       ``(c) Eligible Entities.--To receive a grant under 
     subsection (b), an entity--
       ``(1) shall be a nonprofit organization; and
       ``(2) shall have demonstrated expertise in biodiesel fuel 
     production, use, and distribution.

[[Page S12961]]

       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2002 through 2006, to remain available 
     until expended.

    ``CHAPTER 2--RENEWABLE ENERGY DEVELOPMENT AND ENERGY EFFICIENCY

     ``SEC. 388E. RENEWABLE ENERGY DEVELOPMENT LOAN AND GRANT 
                   PROGRAM.

       ``(a) In General.--The Secretary, acting through the Rural 
     Business Cooperative Service, in addition to exercising 
     authority to make loans and loan guarantees under other law, 
     shall establish a program under which the Secretary shall 
     make loans and loan guarantees and competitively award grants 
     to assist farmers and ranchers in projects to establish new, 
     or expand existing, farmer or rancher cooperatives, or other 
     rural business ventures (as determined by the Secretary), 
     to--
       ``(1) enable farmers and ranchers to become owners of 
     sources of renewable electric energy and marketers of 
     electric energy produced from renewable sources;
       ``(2) provide new income streams for farmers and ranchers;
       ``(3) increase the quantity of electricity available from 
     renewable energy sources; and
       ``(4) provide environmental and public health benefits to 
     rural communities and the United States as a whole.
       ``(b) Ownership Requirement.--At least 51 percent of the 
     interest in a rural business venture assisted with a grant 
     under subsection (a) shall be owned by farmers or ranchers.
       ``(c) Maximum Amount of Loans and Grants.--
       ``(1) Loans.--The amount of a loan made or guaranteed for a 
     project under subsection (a) shall not exceed $10,000,000.
       ``(2) Grants.--The amount of a grant made for a project 
     under subsection (a) shall not exceed $200,000 for a fiscal 
     year.
       ``(d) Cost Sharing.--
       ``(1) In general.--The total amount of loans made or 
     guaranteed or grants awarded under subsection (a) for a 
     project shall not exceed 50 percent of the cost of the 
     activity funded by the loan or grant.
       ``(2) Form of grantee share.--
       ``(A) In general.--The grantee share of the cost of the 
     activity may be made in the form of cash or the provision of 
     services, material, or other in-kind contributions.
       ``(B) Limitation.--The amount of the grantee share of the 
     cost of an activity that is made in the form of the provision 
     of services, material, or other in-kind contributions shall 
     not exceed 25 percent of the amount of the grantee share, as 
     determined under paragraph (1).
       ``(e) Interest Rate.--A loan made or guaranteed under 
     subsection (a) shall bear an interest rate that does not 
     exceed 4 percent.
       ``(f) Use of Funds.--
       ``(1) Permitted uses.--
       ``(A) Grants.--A recipient of a grant awarded under 
     subsection (a) may use the grant funds to develop a business 
     plan or perform a feasibility study to establish a viable 
     marketing opportunity for renewable electric energy 
     generation and sale.
       ``(B) Loans.--A recipient of a loan or loan guarantee under 
     subsection (a) may use the loan funds to provide capital for 
     start-up costs associated with the rural business venture or 
     the promotion of the aggregation of renewable electric energy 
     sources.
       ``(2) Prohibited uses.--A recipient of a loan, loan 
     guarantee, or grant under subsection (a) shall not use the 
     loan or grant funds for planning, repair, rehabilitation, 
     acquisition, or construction of a building.
       ``(g) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this subtitle, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary to 
     carry out this section $16,000,000, to remain available until 
     expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.
       ``(3) Loan and interest subsidies.--In the case of a loan 
     or loan guarantee under subsection (a), the Secretary shall 
     use funds under paragraph (1) to pay the cost of loan and 
     interest subsidies necessary to carry out this section.

     ``SEC. 388F. ENERGY AUDIT AND RENEWABLE ENERGY DEVELOPMENT 
                   PROGRAM.

       ``(a) In General.--The Secretary, acting through the Rural 
     Business Cooperative Service, shall make competitive grants 
     to eligible entities to enable the eligible entities to carry 
     out a program to assist farmers, and ranchers, and rural 
     small businesses (as determined by the Secretary) in becoming 
     more energy efficient and in using renewable energy 
     technology.
       ``(b) Eligible Entities.--Entities eligible to carry out a 
     program under subsection (a) include--
       ``(1) a State energy or agricultural office;
       ``(2) a regional or State-based energy organization or 
     energy organization of an Indian tribe (as defined in section 
     4 of the Indian Self-Determination and Education Assistance 
     Act (25 U.S.C. 450b));
       ``(3) a land-grant college or university (as defined in 
     section 1404 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)) 
     or other college or university;
       ``(4) a farm bureau or organization;
       ``(5) a rural electric cooperative or utility;
       ``(6) a nonprofit organization; and
       ``(7) any other entity, as determined by the Secretary.
       ``(c) Merit Review.--
       ``(1) Merit review panel.--The Secretary shall establish a 
     merit review panel to review applications for grants under 
     subsection (a) that uses the expertise of other Federal 
     agencies (including the Department of Energy and the 
     Environmental Protection Agency), industry, and 
     nongovernmental organizations.
       ``(2) Selection criteria.--In reviewing applications of 
     eligible entities to receive grants under subsection (a), the 
     merit review panel shall consider--
       ``(A) the ability and expertise of the eligible entity in 
     providing professional energy audits and renewable energy 
     assessments;
       ``(B) the geographic scope of the program proposed by the 
     eligible entity;
       ``(C) the number of farmers, ranchers, and rural small 
     businesses to be assisted by the program;
       ``(D) the potential for energy savings and environmental 
     and public health benefits resulting from the program; and
       ``(E) the plan of the eligible entity for educating 
     farmers, ranchers, and rural small businesses on the benefits 
     of energy efficiency and renewable energy development.
       ``(d) Use of Grant Funds.--A recipient of a grant under 
     subsection (a) shall use the grant funds to--
       ``(1)(A) conduct energy audits for farmers, ranchers, and 
     rural small businesses to provide farmers, ranchers, and 
     rural small businesses recommendations for energy efficiency 
     and renewable energy development opportunities; and
       ``(B) conduct workshops on that subject as appropriate;
       ``(2) make farmers, ranchers, and rural small businesses 
     aware of, and ensure that they have access to--
       ``(A) financial assistance under section 388G; and
       ``(B) other Federal, State, and local financial assistance 
     programs for which farmers, ranchers, and rural small 
     businesses may be eligible; and
       ``(3) arrange private financial assistance to farmers, 
     ranchers, and rural small businesses on favorable terms.
       ``(e) Cost Sharing.--
       ``(1) In general.--A recipient of a grant under subsection 
     (a) that conducts an energy audit for a farmer, rancher, or 
     rural small business under subsection (d)(1) shall require 
     that, as a condition to the conduct of the energy audit, the 
     farmer, rancher, or rural small business pay at least 25 
     percent of the cost of the audit.
       ``(2) Implementation of recommendations.--If a farmer, 
     rancher, or rural small business substantially implements the 
     recommendations made in connection with an energy audit, the 
     Secretary may reimburse the farmer, rancher, or rural small 
     business the amount that is equal to the share of the cost 
     paid by the farmer, rancher, or rural small business under 
     paragraph (1).
       ``(f) Reports.--The Secretary shall submit to the Committee 
     on Agriculture of the House of Representatives and the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate an annual report on the implementation of this 
     section.
       ``(g) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this subtitle, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary to 
     carry out this section $15,000,000, to remain available until 
     expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.

     ``SEC. 388G. LOANS, LOAN GUARANTEES, AND GRANTS TO FARMERS, 
                   RANCHERS, AND RURAL SMALL BUSINESSES FOR 
                   RENEWABLE ENERGY SYSTEMS AND ENERGY EFFICIENCY 
                   IMPROVEMENTS.

       ``(a) In General.--In addition to exercising authority to 
     make loans and loan guarantees under other law, the Secretary 
     shall make loans, loan guarantees, and grants to farmers, 
     ranchers, and rural small businesses to--
       ``(1) purchase renewable energy systems; and
       ``(2) make energy efficiency improvements.
       ``(b) Eligibility of Farmers and Ranchers.--To be eligible 
     to receive a grant under subsection (a) for a fiscal year, a 
     farmer or rancher shall have produced not more than 
     $1,000,000 in market value of agricultural products during 
     the preceding fiscal year, as determined by the Secretary.
       ``(c) Cost Sharing.--
       ``(1) Renewable energy systems.--
       ``(A) In general.--
       ``(i) Grants.--The amount of a grant made under subsection 
     (a) for a renewable energy system shall not exceed 15 percent 
     of the cost of the renewable energy system.
       ``(ii) Loans.--The amount of a loan made or guaranteed 
     under subsection (a) for a renewable energy system shall not 
     exceed 35 percent of the cost of the renewable energy system.
       ``(B) Factors.--In determining the amount of a grant or 
     loan under subparagraph (A), the Secretary shall take into 
     consideration--

[[Page S12962]]

       ``(i) the type of renewable energy system to be purchased;
       ``(ii) the estimated quantity of energy to be generated or 
     displaced by the renewable energy system;
       ``(iii) the expected environmental benefits of the 
     renewable energy system;
       ``(iv) the extent to which the renewable energy system will 
     be replicable; and
       ``(v) other factors as appropriate.
       ``(2) Energy efficiency improvements.--
       ``(A) In general.--
       ``(i) Grants.--The amount of a grant made under subsection 
     (a) for an energy efficiency improvement shall not exceed 15 
     percent of the cost of the energy efficiency improvement.
       ``(ii) Loans.--The amount of a loan made or guaranteed 
     under subsection (a) for an energy efficiency project shall 
     not exceed 35 percent of the cost of the energy efficiency 
     improvement.
       ``(B) Factors.--In determining the amount of a grant or 
     loan under subparagraph (A), the Secretary shall take into 
     consideration--
       ``(i) the estimated length of time it would take for the 
     energy savings generated by the improvement to equal the cost 
     of the improvement;
       ``(ii) the amount of energy savings expected to be derived 
     from the improvement; and
       ``(iii) other factors as appropriate.
       ``(d) Interest Rate.--A loan made or guaranteed under 
     subsection (a) shall bear interest at a rate not exceeding 4 
     percent.
       ``(e) Energy Audit and Renewable Energy Development 
     Program.--
       ``(1) Preference.--In making loans, loan guarantees, and 
     grants under subsection (a), the Secretary shall give 
     preference to participants in the energy audit and renewable 
     energy development program under section 388F.
       ``(2) Reservation of funding.--The Secretary shall reserve 
     at least 25 percent of the funds made available to carry out 
     this section for each of fiscal years 2002 through 2006 to 
     participants in the energy audit and renewable energy 
     development program under section 388F.
       ``(f) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this subtitle, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary to 
     carry out this section $33,000,000, to remain available until 
     expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.
       ``(3) Loan and interest subsidies.--In the case of a loan 
     or loan guarantee under subsection (a), the Secretary shall 
     use funds under paragraph (1) to pay the cost of loan and 
     interest subsidies necessary to carry out this section.

     ``SEC. 388H. HYDROGEN AND FUEL CELL TECHNOLOGIES PROGRAM.

       ``(a) In General.--The Secretary of Agriculture, in 
     consultation with the Secretary of Energy, shall establish a 
     program under which the Secretary of Agriculture shall 
     competitively award grants to, or enter into contracts or 
     cooperative agreements with, eligible entities for--
       ``(1) projects to demonstrate the use of hydrogen 
     technologies and fuel cell technologies in farm, ranch, and 
     rural applications; and
       ``(2) as appropriate, studies of the technical, 
     environmental, and economic viability, in farm, ranch, and 
     rural applications, of innovative hydrogen and fuel cell 
     technologies not ready for demonstration.
       ``(b) Eligible Entities.--Under subsection (a), the 
     Secretary may make a grant to or enter into a contract or 
     cooperative agreement with--
       ``(1) a Federal research agency;
       ``(2) a national laboratory;
       ``(3) a college or university or a research foundation 
     maintained by a college or university;
       ``(4) a private research organization with an established 
     and demonstrated capacity to perform research or technology 
     transfer;
       ``(5) a State agricultural experiment station; or
       ``(6) an individual.
       ``(c) Selection Criteria.--In selecting projects for 
     grants, contracts, and cooperative agreements under 
     subsection (a)(1), the Secretary shall give preference to 
     projects that demonstrate technologies that--
       ``(1) are innovative;
       ``(2) use renewable energy sources;
       ``(3) produce multiple sources of energy;
       ``(4) provide significant environmental benefits;
       ``(5) are likely to be economically competitive; and
       ``(6) have potential for commercialization as mass-
     produced, farm- or ranch-sized systems.
       ``(d) Cost Sharing.--The amount of financial assistance 
     provided for a project under a grant, contract, or 
     cooperative agreement under subsection (a) shall not exceed 
     50 percent of the cost of the project.
       ``(e) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this subtitle, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary to 
     carry out this section $5,000,000, to remain available until 
     expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.

     ``SEC. 388I. TECHNICAL ASSISTANCE FOR FARMERS AND RANCHERS TO 
                   DEVELOP RENEWABLE ENERGY RESOURCES.

       ``(a) In General.--The Secretary, acting through the 
     Cooperative State Research, Education, and Extension Service 
     in consultation with the Natural Resources Conservation 
     Service, regional biomass programs under the Department of 
     Energy, and other entities as appropriate, may provide for 
     education and technical assistance to farmers and ranchers 
     for the development and marketing of renewable energy 
     resources.
       ``(b) Administrative Expenses.--The Secretary may retain up 
     to 4 percent of the amounts made available for each fiscal 
     year to carry out this section to pay administrative expenses 
     incurred in carrying out this section.

     ``CHAPTER 3--CARBON SEQUESTRATION RESEARCH, DEVELOPMENT, AND 
                         DEMONSTRATION PROGRAM

     ``SEC. 388J. RESEARCH.

       ``(a) Basic Research.--
       ``(1) In general.--Subject to the availability of 
     appropriations, the Secretary shall carry out research to 
     promote understanding of--
       ``(A) the net sequestration of organic carbon in soils and 
     plants (including trees); and
       ``(B) net emissions of other greenhouse gases from 
     agriculture.
       ``(2) Agricultural research service.--The Secretary, acting 
     through the Agricultural Research Service, shall collaborate 
     with other Federal agencies in developing data and carrying 
     out research addressing carbon losses and gains in soils and 
     plants (including trees) and net emissions of methane and 
     nitrous oxide from cultivation and animal management 
     activities.
       ``(3) Cooperative state research, education, and extension 
     service.--
       ``(A) In general.--The Secretary, acting through the 
     Cooperative State Research, Education, and Extension Service, 
     shall establish a competitive grant program to carry out 
     research on the matters described in paragraph (1) by 
     eligible entities.
       ``(B) Eligible entities.--Under subparagraph (A), the 
     Secretary may make a grant to--
       ``(i) a Federal research agency;
       ``(ii) a national laboratory;
       ``(iii) a college or university or a research foundation 
     maintained by a college or university;
       ``(iv) a private research organization with an established 
     and demonstrated capacity to perform research or technology 
     transfer;
       ``(v) a State agricultural experiment station; or
       ``(vi) an individual.
       ``(C) Consultation on research topics.--Before issuing a 
     request for proposals for basic research under paragraph (1), 
     the Cooperative State Research, Education, and Extension 
     Service shall consult with the Agricultural Research Service 
     and the Forest Service to ensure that proposed research areas 
     are complementary with and do not duplicate other research 
     projects funded by the Department or other Federal agencies.
       ``(D) Administrative expenses.--The Secretary may retain up 
     to 4 percent of the amounts made available for each fiscal 
     year to carry out this subsection to pay administrative 
     expenses incurred in carrying out this subsection.
       ``(b) Applied Research.--
       ``(1) In general.--The Secretary shall carry out applied 
     research in the areas of soil science, agronomy, agricultural 
     economics, forestry, and other agricultural sciences to--
       ``(A) promote understanding of--
       ``(i) how agricultural and forestry practices affect the 
     sequestration of organic and inorganic carbon in soils and 
     plants (including trees) and net emissions of other 
     greenhouse gases;
       ``(ii) how changes in soil carbon pools in soils and plants 
     (including trees) are cost-effectively measured, monitored, 
     and verified; and
       ``(iii) how public programs and private market approaches 
     can be devised to incorporate carbon sequestration in a 
     broader societal greenhouse gas emission reduction effort;
       ``(B) develop methods for establishing baselines for 
     measuring the quantities of carbon and other greenhouse gases 
     sequestered; and
       ``(C) evaluate leakage and performance issues.
       ``(2) Requirements.--To the maximum extent practicable, 
     applied research under paragraph (1) shall--
       ``(A) use existing technologies and methods; and
       ``(B) provide methodologies that are accessible to a 
     nontechnical audience.
       ``(3) Minimization of adverse environmental impacts.--All 
     applied research under paragraph (1) shall be conducted with 
     an emphasis on minimizing adverse environmental impacts.
       ``(4) Natural resources and the environment.--The 
     Secretary, acting through the Natural Resources Conservation 
     Service and the Forest Service, shall collaborate with other 
     Federal agencies in developing new

[[Page S12963]]

     measuring techniques and equipment or adapting existing 
     techniques and equipment to enable cost-effective and 
     accurate monitoring and verification, for a wide range of 
     agricultural and forestry practices, of--
       ``(A) changes in carbon content in soils and plants 
     (including trees); and
       ``(B) net emissions of other greenhouse gases.
       ``(5) Cooperative state research, education, and extension 
     service.--
       ``(A) In general.--The Secretary, acting through the 
     Cooperative State Research, Education, and Extension Service 
     and the Forest Service, shall establish a competitive grant 
     program to encourage research on the matters described in 
     paragraph (1) by eligible entities.
       ``(B) Eligible entities.--Under subparagraph (A), the 
     Secretary may make a grant to--
       ``(i) a Federal research agency;
       ``(ii) a national laboratory;
       ``(iii) a college or university or a research foundation 
     maintained by a college or university;
       ``(iv) a private research organization with an established 
     and demonstrated capacity to perform research or technology 
     transfer;
       ``(v) a State agricultural experiment station; or
       ``(vi) an individual.
       ``(C) Consultation on research topics.--Before issuing a 
     request for proposals for applied research under paragraph 
     (1), the Cooperative State Research, Education, and Extension 
     Service and the Forest Service shall consult with the Natural 
     Resources Conservation Service and the Agricultural Research 
     Service to ensure that proposed research areas are 
     complementary with and do not duplicate research projects 
     funded by the Department of Agriculture or other Federal 
     agencies.
       ``(D) Administrative expenses.--The Secretary, acting 
     through the Cooperative State Research, Education, and 
     Extension Service, may retain up to 4 percent of the amounts 
     made available for each fiscal year to carry out this 
     subsection to pay administrative expenses incurred in 
     carrying out this subsection.
       ``(c) Research Consortia.--
       ``(1) In general.--The Secretary may designate not more 
     than 2 research consortia to carry out research projects 
     under this section, with the requirement that the consortia 
     propose to conduct basic research under subsection (a) and 
     applied research under subsection (b) .
       ``(2) Selection.--The consortia shall be selected on a 
     competitive basis by the Cooperative State Research, 
     Education, and Extension Service.
       ``(3) Eligible consortium participants.--Entities eligible 
     to participate in a consortium include--
       ``(A) a land-grant college or university (as defined in 
     section 1404 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103));
       ``(B) a private research institution;
       ``(C) a State agency;
       ``(D) an Indian tribe (as defined in section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b));
       ``(E) an agency of the Department of Agriculture;
       ``(F) a research center of the National Aeronautics and 
     Space Administration, the Department of Energy, or any other 
     Federal agency;
       ``(G) an agricultural business or organization with 
     demonstrated expertise in areas covered by this section; and
       ``(H) a representative of the private sector with 
     demonstrated expertise in the areas.
       ``(4) Reservation of funding.--If the Secretary designates 
     1 or 2 consortia, the Secretary shall reserve for research 
     projects carried out by the consortium or consortia not more 
     than 25 percent of the amounts made available to carry out 
     this section for a fiscal year.
       ``(d) Standards for Measuring Carbon and Other Greenhouse 
     Gas Content.--
       ``(1) Conference.--Not later than 3 years after the date of 
     enactment of this subtitle, the Secretary shall convene a 
     conference of key scientific experts on carbon sequestration 
     from various sectors (including the government, academic, and 
     private sectors) to--
       ``(A) discuss and establish benchmark standards for 
     measuring the carbon content of soils and plants (including 
     trees) and net emissions of other greenhouse gases;
       ``(B) propose techniques and modeling approaches for 
     measuring carbon content with a level of precision that is 
     agreed on by the participants in the conference; and
       ``(C) evaluate results of analyses on baseline, permanence, 
     and leakage issues.
       ``(2) Report.--Not later than 180 days after the conclusion 
     of the conference under paragraph (1), 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 
     conference.
       ``(e) Authorization of Appropriations.--
       ``(1) In general.--There is authorized to be appropriated 
     to carry out this section $25,000,000 for each of fiscal 
     years 2002 through 2006.
       ``(2) Allocation.--
       ``(A) In general.--Of the amounts made available to carry 
     out this section for a fiscal year, at least 50 percent shall 
     be allocated for competitive grants by the Cooperative State 
     Research, Education, and Extension Service.
       ``(B) Administrative expenses.--The Secretary may retain up 
     to 4 percent of the amounts made available for each fiscal 
     year to carry out this section to pay administrative expenses 
     incurred in carrying out this section.

     ``SEC. 388K. DEMONSTRATION PROJECTS AND OUTREACH.

       ``(a) Demonstration Projects.--
       ``(1) Development of monitoring programs.--
       ``(A) In general.--The Secretary, in cooperation with local 
     extension agents, experts from land grant universities, and 
     other local agricultural or conservation organizations, shall 
     develop user-friendly programs that combine measurement tools 
     and modeling techniques into integrated packages to monitor 
     the carbon sequestering benefits of conservation practices 
     and net changes in greenhouse gas emissions.
       ``(B) Benchmark levels of precision.--The Secretary shall 
     administer programs developed under subparagraph (A) in a 
     manner that achieves, to the maximum extent practicable, 
     benchmark levels of precision in the measurement, in a cost-
     effective manner, of benefits and changes described in 
     subparagraph (A).
       ``(2) Projects.--
       ``(A) In general.--The Secretary shall establish a program 
     under which the monitoring programs developed under paragraph 
     (1) are used in projects to demonstrate the feasibility of 
     methods of measuring, verifying, and monitoring--
       ``(i) changes in organic carbon content and other carbon 
     pools in soils and plants (including trees); and
       ``(ii) net changes in emissions of other greenhouse gases.
       ``(B) Evaluation of implications.--The projects under 
     subparagraph (A) shall include evaluation of the implications 
     for reassessed baselines, carbon or other greenhouse gas 
     leakage, and the permanence of sequestration.
       ``(C) Submission of proposals.--Proposals for projects 
     under subparagraph (A) shall be submitted by the appropriate 
     agency of each State, in consultation with interested local 
     jurisdictions and State agricultural and conservation 
     organizations.
       ``(D) Limitation.--Not more than 10 projects under 
     subparagraph (A) may be approved in conjunction with applied 
     research projects under section 388J(b) until benchmark 
     measurement and assessment standards are established under 
     section 388J(d).
       ``(b) Outreach.--
       ``(1) In general.--The Secretary, acting through the 
     Cooperative State Research, Education, and Extension Service, 
     shall widely disseminate information about the economic and 
     environmental benefits that can be generated by adoption of 
     conservation practices that increase sequestration of carbon 
     and reduce emission of other greenhouse gases.
       ``(2) Project results.--The Secretary, acting through the 
     Cooperative State Research, Education, and Extension Service, 
     shall provide for the dissemination to farmers, ranchers, 
     private forest landowners, and appropriate State agencies in 
     each State of information concerning--
       ``(A) the results of demonstration projects under 
     subsection (a)(2); and
       ``(B) the manner in which the methods demonstrated in the 
     projects might be applicable to the operations of the farmers 
     and ranchers.
       ``(3) Policy outreach.--The Secretary, acting through the 
     Cooperative State Research, Education, and Extension Service, 
     shall disseminate information on the connection between 
     global climate change mitigation strategies and agriculture 
     and forestry, so that farmers and ranchers may better 
     understand the global implications of the activities of 
     farmers and ranchers.
       ``(c) Authorization of Appropriations.--
       ``(1) In general.--There is authorized to be appropriated 
     to carry out this section $10,000,000 for each of fiscal 
     years 2002 through 2006.
       ``(2) Allocation.--Of the amounts made available to carry 
     out this section for a fiscal year, at least 50 percent shall 
     be allocated for demonstration projects under subsection 
     (a)(2).''.

     SEC. 903. BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000.

       (a) Funding.--The Biomass Research and Development Act of 
     2000 (7 U.S.C. 7624 note; Public Law 106-224) is amended--
       (1) in section 307, by striking subsection (f);
       (2) by redesignating section 310 as section 311; and
       (3) by inserting after section 309 the following:

     ``SEC. 310. FUNDING.

       ``(a) In General.--Not later than 30 days after the date of 
     enactment of this subsection, and on October 1, 2002, and 
     each October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary to 
     carry out this title $15,000,000, to remain available until 
     expended.
       ``(b) Receipt and Acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this title the funds transferred under subsection (a), 
     without further appropriation.''.
       (b) Termination of Authority.--Section 311 of the Biomass 
     Research and Development Act of 2000 (7 U.S.C. 7624 note; 
     Public Law 106-224) (as redesignated by subsection (a)) is 
     amended by striking ``December 31, 2005'' and inserting 
     ``September 30, 2006''.

[[Page S12964]]

     SEC. 904. RURAL ELECTRIFICATION ACT OF 1936.

       Title I of the Rural Electrification Act of 1936 (7 U.S.C. 
     901 et seq.) (as amended by section 661) is amended by adding 
     at the end the following:

     ``SEC. 21. FINANCIAL AND TECHNICAL ASSISTANCE FOR RENEWABLE 
                   ENERGY PROJECTS.

       ``(a) Definition of Renewable Energy.--In this section, the 
     term `renewable energy' means energy derived from a wind, 
     solar, biomass, geothermal, or hydrogen source.
       ``(b) Loans, Loan Guarantees, and Grants.--The Secretary 
     shall make loans, loan guarantees, and grants to rural 
     electric cooperatives and other rural electric utilities to 
     promote the development of economically and environmentally 
     sustainable renewable energy projects to serve the needs of 
     rural communities or for rural economic development.
       ``(c) Interest Rate.--A loan made or guaranteed under 
     subsection (b) shall bear interest at a rate not exceeding 4 
     percent.
       ``(d) Use of Funds.--
       ``(1) Grants.--A recipient of a grant under subsection (a) 
     may use the grant funds to pay up to 75 percent of the cost 
     of an economic feasibility study or technical assistance for 
     a renewable energy project.
       ``(2) Loans.--If a renewable energy project is determined 
     to be economically feasible, a recipient of a loan or loan 
     guarantee under subsection (a) may use the loan funds to pay 
     a percentage of the cost of the project determined by the 
     Secretary.
       ``(e) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this section, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary to 
     carry out this section $9,000,000, to remain available until 
     expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.
       ``(3) Loan and interest subsidies.--In the case of a loan 
     or loan guarantee under subsection (a), the Secretary shall 
     use funds under paragraph (1) to pay the cost of loan and 
     interest subsidies necessary to carry out this section.''.

     SEC. 905. CARBON SEQUESTRATION DEMONSTRATION PROGRAM.

       (a) Findings.--Congress finds that--
       (1) greenhouse gas emissions resulting from human activity 
     present potential risks and potential opportunities for 
     agricultural and forestry production;
       (2) there is a need to identify cost-effective methods that 
     can be used in the agricultural and forestry sectors to 
     reduce the threat of climate change;
       (3) deforestation and other land use changes account for 
     approximately 1,600,000,000 of the 7,900,000,000 metric tons 
     of the average annual worldwide quantity of carbon emitted 
     during the 1990s;
       (4) ocean and terrestrial systems each sequestered 
     approximately 2,300,000,000 metric tons of carbon annually, 
     resulting in a sequestration of 60 percent of the annual 
     human-induced emissions of carbon during the 1990s;
       (5) there are opportunities for increasing the quantity of 
     carbon that can be stored in terrestrial systems through 
     improved, human-induced agricultural and forestry practices;
       (6) increasing the carbon content of soil helps to reduce 
     erosion, reduce flooding, minimize the effects of drought, 
     prevent nutrients and pesticides from washing into water 
     bodies, and contribute to water infiltration, air and water 
     holding capacity, and good seed germination and plant growth;
       (7) tree planting and wetland restoration could play a 
     major role in sequestering carbon and reducing greenhouse gas 
     concentrations in the atmosphere;
       (8) nitrogen management is a cost-effective method of 
     addressing nutrient overenrichment in the estuaries of the 
     United States and of reducing emissions of nitrous oxide;
       (9) animal feed and waste management can be cost-effective 
     methods to address water quality issues and reduce emissions 
     of methane; and
       (10) there is a need to--
       (A) demonstrate that carbon sequestration in soils, plants, 
     and forests and reductions in greenhouse gas emissions 
     through nitrogen and animal feed and waste management can be 
     measured and verified; and
       (B) develop and refine quantification, verification, and 
     auditing methodologies for carbon sequestration and 
     greenhouse gas emission reductions on a project by project 
     basis.
       (b) Program.--Title IV of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 7621 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 409. CARBON SEQUESTRATION DEMONSTRATION PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Eligible project.--The term `eligible project' means 
     a project that is likely to result in--
       ``(A) demonstrable reductions in net emissions of 
     greenhouse gases; or
       ``(B) demonstrable net increases in the quantity of carbon 
     sequestered in soils and forests.
       ``(2) Environmental trade.--The term `environmental trade' 
     means a transaction between an emitter of a greenhouse gas 
     and an agricultural producer under which the emitter pays to 
     the agricultural producer a fee to sequester carbon or 
     otherwise reduce emissions of greenhouse gases.
       ``(3) Panel.--The term `panel' means the panel of experts 
     established under subsection (b)(4)(A).
       ``(4) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture, acting in consultation with--
       ``(A) the Under Secretary of Agriculture for Natural 
     Resources and Environment;
       ``(B) the Under Secretary of Agriculture for Research, 
     Education, and Economics;
       ``(C) the Chief Economist of the Department; and
       ``(D) the panel.
       ``(b) Demonstration Program.--
       ``(1) Establishment.--Subject to the availability of 
     appropriations, the Secretary shall establish a program to 
     provide grants, on a competitive, cost-shared basis, to 
     agricultural producers to assist in paying the costs incurred 
     in measuring, estimating, monitoring, verifying, auditing, 
     and testing methodologies involved in environmental trades 
     (including costs incurred in employing certified independent 
     third persons to carry out those activities).
       ``(2) Conditions for receipt of grant.--As a condition of 
     the acceptance of a grant under paragraph (1), an 
     agricultural producer shall--
       ``(A) establish a carbon and greenhouse gas monitoring, 
     verification, and reporting system that meets such 
     requirements as the Secretary shall prescribe; and
       ``(B) under the system and through the use of an 
     independent third party for any necessary monitoring, 
     verifying, reporting, and auditing, measure and report to the 
     Secretary the quantity of carbon sequestered, or the quantity 
     of greenhouse gas emissions reduced, as a result of the 
     conduct of an eligible project.
       ``(3) Criteria for award of grant.--
       ``(A) In general.--In awarding a grant for an eligible 
     project under paragraph (1), the Secretary shall take into 
     consideration--
       ``(i) the likelihood of the eligible project in succeeding 
     in achieving greenhouse gas emissions reductions and net 
     carbon sequestration increases; and
       ``(ii) the usefulness of the information to be obtained 
     from the eligible project in determining how best to 
     quantify, monitor, and verify sequestered carbon or 
     reductions in greenhouse gas emissions.
       ``(B) Priority criteria.--The Secretary shall give priority 
     in awarding a grant under paragraph (1) to an eligible 
     project that--
       ``(i) involves multiple parties, a whole farm approach, or 
     any other approach, such as the aggregation of land areas, 
     that would--

       ``(I) increase the environmental benefits or reduce the 
     transaction costs of the eligible project; and
       ``(II) reduce the costs of measuring, monitoring, and 
     verifying any net sequestration of carbon or net reduction in 
     greenhouse gas emissions;

       ``(ii) is designed to achieve long-term sequestration of 
     carbon or long-term reductions in greenhouse gas emissions;
       ``(iii) is designed to address concerns concerning leakage;
       ``(iv) provides certain other benefits, such as 
     improvements in--

       ``(I) soil fertility;
       ``(II) wildlife habitat;
       ``(III) water quality;
       ``(IV) soil erosion management;
       ``(V) the use of renewable resources to produce energy;
       ``(VI) the avoidance of ecosystem fragmentation; and
       ``(VII) the promotion of ecosystem restoration with native 
     species; or

       ``(v) does not involve--

       ``(I) the reforestation of land that has been deforested 
     since 1990; or
       ``(II) the conversion of native grassland.

       ``(4) Panel.--
       ``(A) In general.--The Secretary shall establish a panel to 
     provide advice and recommendations to the Secretary with 
     respect to criteria for awarding grants under this 
     subsection.
       ``(B) Composition.--The panel shall be composed of the 
     following representatives, to be appointed by the Secretary:
       ``(i) Experts from each of--

       ``(I) the Department;
       ``(II) the Environmental Protection Agency; and

       ``(III) the Department of Energy.

       ``(ii) Experts from nongovernmental and academic entities.
       ``(5) Payment of grant funds.--The Secretary shall provide 
     a grant awarded under this section in such number of 
     installments as is necessary to ensure proper implementation 
     of an eligible project.
       ``(c) Methodology Grant Program.--
       ``(1) Establishment.--The Secretary shall establish a 
     program to provide grants to determine the  best 
     methodologies for estimating and measuring increases or 
     decreases in--
       ``(A) agricultural greenhouse gas emissions; and
       ``(B) the quantity of carbon sequestered in soils, forests, 
     and trees.
       ``(2) Eligible recipients.--The Secretary shall award a 
     grant under paragraph (1), on a competitive basis, to a 
     college or university, or other research institution, that 
     seeks to demonstrate the viability of a methodology described 
     in paragraph (1).

[[Page S12965]]

       ``(d) Dissemination of Information.--As soon as practicable 
     after the date of enactment of this section, the Secretary 
     shall establish an Internet site through which agricultural 
     producers may obtain information concerning--
       ``(1) potential environmental trades; and
       ``(2) activities of the Secretary under this section.
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $20,000,000 for 
     each of fiscal years 2002 through 2006.''.

     SEC. 906. SENSE OF CONGRESS CONCERNING NATIONAL RENEWABLE 
                   FUELS STANDARD.

       It is the sense of Congress that--
       (1) Congress supports and encourages adoption of a national 
     renewable fuels program, under which the motor vehicle fuel 
     placed into commerce by a refiner, blender, or importer shall 
     be composed of renewable fuel measured according to a 
     statutory formula for specified calendar years; and
       (2) the Secretary of Agriculture should ensure that the 
     policies and programs of the Department of Agriculture 
     promote the production of fuels from renewable fuel sources.

     SEC. 907. SENSE OF CONGRESS CONCERNING THE BIOENERGY PROGRAM 
                   OF THE DEPARTMENT OF AGRICULTURE.

       It is the sense of Congress that--
       (1) ethanol and biofuel production capacity will be needed 
     to phase out the use of methyl tertiary butyl ether in 
     gasoline and the dependence of the United States on foreign 
     oil; and
       (2) the bioenergy program of the Department of Agriculture 
     under part 1424 of title 7, Code of Federal Regulations, 
     should be continued and expanded.

                         TITLE X--MISCELLANEOUS

        Subtitle A--Country of Origin and Quality Grade Labeling

     SEC. 1001. COUNTRY OF ORIGIN LABELING.

       The Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et 
     seq.) is amended by adding at the end the following:

                ``Subtitle C--Country of Origin Labeling

     ``SEC. 271. DEFINITIONS.

       ``In this subtitle:
       ``(1) Beef.--The term `beef' means meat produced from 
     cattle (including veal).
       ``(2) Covered commodity.--
       ``(A) In general.--The term `covered commodity' means--
       ``(i) muscle cuts of beef, lamb, and pork;
       ``(ii) ground beef, ground lamb, and ground pork;
       ``(iii) farm-raised fish;
       ``(iv) a perishable agricultural commodity; and
       ``(v) peanuts.
       ``(B) Exclusions.--The term `covered commodity' does not 
     include--
       ``(i) processed beef, lamb, and pork food items; and
       ``(ii) frozen entrees containing beef, lamb, and pork.
       ``(3) Farm-raised fish.--The term `farm-raised fish' 
     includes--
       ``(A) farm-raised shellfish; and
       ``(B) fillets, steaks, nuggets, and any other flesh from a 
     farm-raised fish or shellfish.
       ``(4) Food service establishment.--The term `food service 
     establishment' means a restaurant, cafeteria, lunch room, 
     food stand, saloon, tavern, bar, lounge, or other similar 
     facility operated as an enterprise engaged in the business of 
     selling food to the public.
       ``(5) Lamb.--The term `lamb' means meat, other than mutton, 
     produced from sheep.
       ``(6) Perishable agricultural commodity; retailer.--The 
     terms `perishable agricultural commodity' and `retailer' have 
     the meanings given the terms in section 1(b) of the 
     Perishable Agricultural Commodities Act, 1930 (7 U.S.C. 
     499a(b)).
       ``(7) Pork.--The term `pork' means meat produced from hogs.
       ``(8) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture, acting through the Agricultural Marketing 
     Service.

     ``SEC. 272. NOTICE OF COUNTRY OF ORIGIN.

       ``(a) In General.--
       ``(1) Requirement.--Except as provided in subsection (b), a 
     retailer of a covered commodity shall inform consumers, at 
     the final point of sale of the covered commodity to 
     consumers, of the country of origin of the covered commodity.
       ``(2) United states country of origin.--A retailer of a 
     covered commodity may designate the covered commodity as 
     having a United States country of origin only if the covered 
     commodity--
       ``(A) in the case of beef, lamb, and pork, is exclusively 
     from an animal that is exclusively born, raised, and 
     slaughtered in the United States; and
       ``(B) in the case of farm-raised fish, is hatched, raised, 
     harvested, and processed in the United States; and
       ``(C) in the case of a perishable agricultural commodities 
     or peanut, is exclusively produced in the United States.
       ``(b) Exemption for Food Service Establishments.--
     Subsection (a) shall not apply to a covered commodity if the 
     covered commodity is--
       ``(1) prepared or served in a food service establishment; 
     and
       ``(2)(A) offered for sale or sold at the food service 
     establishment in normal retail quantities; or
       ``(B) served to consumers at the food service 
     establishment.
       ``(c) Method of Notification.--
       ``(1) In general.--The information required by subsection 
     (a) may be provided to consumers by means of a label, stamp, 
     mark, placard, or other clear and visible sign on the covered 
     commodity or on the package, display, holding unit, or bin 
     containing the commodity at the final point of sale to 
     consumers.
       ``(2) Labeled commodities.--If the covered commodity is 
     already individually labeled for retail sale regarding 
     country of origin, the retailer shall not be required to 
     provide any additional information to comply with this 
     section.
       ``(d) Audit Verification System.--The Secretary may require 
     that any person that prepares, stores, handles, or 
     distributes a covered commodity for retail sale maintain a 
     verifiable recordkeeping audit trail that will permit the 
     Secretary to ensure compliance with the regulations 
     promulgated under section 274.
       ``(e) Information.--Any person engaged in the business of 
     supplying a covered commodity to a retailer shall provide 
     information to the retailer indicating the country of origin 
     of the covered commodity.
       ``(f) Certification of Origin.--
       ``(1) Mandatory identification.--The Secretary shall not 
     use a mandatory identification system to verify the country 
     of origin of a covered commodity.
       ``(2) Existing certification programs.--To certify the 
     country of origin of a covered commodity, the Secretary may 
     use as a model certification programs in existence on the 
     date of enactment of this Act, including--
       ``(A) the carcass grading and certification system carried 
     out under this Act;
       ``(B) the voluntary country of origin beef labeling system 
     carried out under this Act;
       ``(C) voluntary programs established to certify certain 
     premium beef cuts;
       ``(D) the origin verification system established to carry 
     out the child and adult care food program established under 
     section 17 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1766); or
       ``(E) the origin verification system established to carry 
     out the market access program under section 203 of the 
     Agricultural Trade Act of 1978 (7 U.S.C. 5623).

     ``SEC. 273. ENFORCEMENT.

       ``(a) In General.--Except as provided in subsection (b), 
     section 253 shall apply to a violation of this subtitle.
       ``(b) Warnings.--If the Secretary determines that a 
     retailer is in violation of section 272, the Secretary 
     shall--
       ``(1) notify the retailer of the determination of the 
     Secretary; and
       ``(2) provide the retailer a 30-day period, beginning on 
     the date on which the retailer receives the notice under 
     paragraph (1) from the Secretary, during which the retailer 
     may take necessary steps to comply with section 272.
       ``(c) Fines.--If, on completion of the 30-day period 
     described in subsection (c)(2), the Secretary determines that 
     the retailer has willfully violated section 272, after 
     providing notice and an opportunity for a hearing before the 
     Secretary with respect to the violation, the Secretary may 
     fine the retailer in an amount determined by the Secretary.

     ``SEC. 274. REGULATIONS.

       ``(a) In General.--The Secretary may promulgate such 
     regulations as are necessary to carry out this subtitle.
       ``(b) Partnerships With States.--In promulgating the 
     regulations, the Secretary shall, to the maximum extent 
     practicable, enter into partnerships with States with 
     enforcement infrastructure to carry out this subtitle.

     ``SEC. 275. APPLICATION.

       ``This subtitle shall apply to the retail sale of a covered 
     commodity beginning on the date that is 180 days after the 
     date of the enactment of this subtitle.''.

     SEC. 1002. QUALITY GRADE LABELING OF IMPORTED MEAT AND MEAT 
                   FOOD PRODUCTS.

       The Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et 
     seq.) (as amended by section 1001) is amended by adding at 
     the end the following:

           ``Subtitle D--Commodity-Specific Grading Standards

     ``SEC. 281. DEFINITION OF SECRETARY.

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

     ``SEC. 282. QUALITY GRADE LABELING OF IMPORTED MEAT AND MEAT 
                   FOOD PRODUCTS.

       ``An imported carcass, part thereof, meat, or meat food 
     product (as defined by the Secretary) shall not bear a label 
     that indicates a quality grade issued by the Secretary.

     ``SEC. 283. REGULATIONS.

       ``The Secretary shall promulgate such regulations as are 
     necessary to ensure compliance with, and otherwise carry out, 
     this subtitle.''.

                       Subtitle B--Crop Insurance

     SEC. 1011. CONTINUOUS COVERAGE.

       Section 508(e)(4) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(e)(4)) is amended--
       (1) in the paragraph heading, by striking ``Temporary 
     prohibition'' and inserting ``Prohibition''; and
       (2) by striking ``through 2005'' and inserting ``and 
     subsequent''.

     SEC. 1012. QUALITY LOSS ADJUSTMENT PROCEDURES.

       Section 508(m)(3) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(m)(3)) is amended--
       (1) by striking ``The Corporation'' and inserting the 
     following:

[[Page S12966]]

       ``(A) Review.--The Corporation''; and
       (2) by striking ``Based on'' and inserting the following:
       ``(B) Procedures.--Effective beginning not later than the 
     2003 reinsurance year, based on''.

     SEC. 1013. CONSERVATION REQUIREMENTS.

       (a) Highly Erodible Land Conservation.--Section 1211(1) of 
     the Food Security Act of 1985 (16 U.S.C. 3811(1)) is 
     amended--
       (1) in subparagraph (A), by striking ``production 
     flexibility'';
       (2) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (D) and (E), respectively; and
       (3) by inserting after subparagraph (B) the following:
       ``(C) an indemnity payment under the Federal Crop Insurance 
     Act (7 U.S.C. 1501 et seq.);''.
       (b) Wetland Conservation.--Section 1221(b) of the Food 
     Security Act of 1985 (16 U.S.C. 3821(b)) is amended--
       (1) in paragraph (1), by striking ``production 
     flexibility'';
       (2) by redesignating paragraphs (2) and (3) as paragraphs 
     (5) and (6), respectively; and
       (3) by inserting after paragraph (1) the following:
       ``(2) A farm storage facility loan made under section 4(h) 
     of the Commodity Credit Corporation Charter Act (15 U.S.C. 
     714b(h)).
       ``(3) A disaster payment.
       ``(4) An indemnity payment under the Federal Crop Insurance 
     Act (7 U.S.C. 1501 et seq.).''.
       (c) Controlled Substances Production Control.--Section 
     519(b) of the Controlled Substances Act (21 U.S.C. 889(b)) is 
     amended--
       (1) in paragraph (1)--
       (A) by striking subparagraph (A) and inserting the 
     following:
       ``(A) contract payments under a contract, marketing 
     assistance loans, and any type of price support or payment 
     made available under the Agricultural Market Transition Act 
     (7 U.S.C. 7201 et seq.), the Commodity Credit Corporation 
     Charter Act (15 U.S.C. 714 et seq.), or any other Act;'';
       (B) by striking subparagraphs (C) and (D) and inserting the 
     following:
       ``(C) an indemnity payment under the Federal Crop Insurance 
     Act (7 U.S.C. 1501 et seq.);
       ``(D) a disaster payment; or'';
       (2) in paragraph (2), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(3) during the crop year--
       ``(A) a payment made pursuant to a contract entered into 
     under the environmental quality incentives program under 
     chapter 4 of subtitle D of title XII of the Food Security Act 
     of 1985 (16 U.S.C. 3839aa et seq.);
       ``(B) a payment under any other provision of subtitle D of 
     title XII of that Act (16 U.S.C. 3830 et seq.);
       ``(C) a payment under section 401 or 402 of the 
     Agricultural Credit Act of 1978 (16 U.S.C. 2201, 2202); or
       ``(D) a payment, loan, or other assistance under section 3 
     or 8 of the Watershed Protection and Flood Prevention Act (16 
     U.S.C. 1003 and 1006a).''.

                     Subtitle C--General Provisions

     SEC. 1021. UNLAWFUL STOCKYARD PRACTICES INVOLVING 
                   NONAMBULATORY LIVESTOCK.

       (a) In General.--Title III of the Packers and Stockyards 
     Act, 1921, is amended by inserting after section 317 (7 
     U.S.C. 217a) the following:

     ``SEC. 318. UNLAWFUL STOCKYARD PRACTICES INVOLVING 
                   NONAMBULATORY LIVESTOCK.

       ``(a) Definitions.--In this section:
       ``(1) Humanely euthanized.--The term `humanely euthanized' 
     means to kill an animal by mechanical, chemical, or other 
     means that immediately render the animal unconscious, with 
     this state remaining until the animal's death.
       ``(2) Nonambulatory livestock.--The term `nonambulatory 
     livestock' means any livestock that is unable to stand and 
     walk unassisted.
       ``(b) Unlawful Practices.--
       ``(1) In general.--It shall be unlawful under section 312 
     for any stockyard owner, market agency, or dealer to buy, 
     sell, give, receive, transfer, market, hold, or drag any 
     nonambulatory livestock unless the nonambulatory livestock 
     has been humanely euthanized.
       ``(2) Exceptions.--
       ``(A) Non-gipsa farms.--Paragraph (1) shall not apply to 
     any farm the animal care practices of which are not subject 
     to the authority of the Grain Inspection, Packers, and 
     Stockyards Administration.
       ``(B) Veterinary care.--Paragraph (1) shall not apply in a 
     case in which nonambulatory livestock receive veterinary care 
     intended to render the livestock ambulatory.''.
       (b) Effective Date.--
       (1) In general.--The amendment made by subsection (a) takes 
     effect 1 year after the date of the enactment of this Act.
       (2) Regulations.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     promulgate regulations consistent with the amendment, 
     relating to the handling, treatment, and disposition of 
     nonambulatory livestock at livestock marketing facilities or 
     by dealers.

     SEC. 1022. COTTON CLASSIFICATION SERVICES.

       The first sentence of section 3a of the Act of March 3, 
     1927 (commonly known as the ``Cotton Statistics and Estimates 
     Act'') (7 U.S.C. 473), is amended by striking ``2002'' and 
     inserting ``2006''.

     SEC. 1023. PROTECTION FOR PURCHASERS OF FARM PRODUCTS.

       Section 1324 of the Food Security Act of 1985 (7 U.S.C. 
     1631) is amended--
       (1) in subsection (c)(4)--
       (A) in subparagraph (B), by striking ``signed,'' and 
     inserting ``signed, authorized, or otherwise authenticated by 
     the debtor,'';
       (B) by striking subparagraph (C);
       (C) in subparagraph (D)--
       (i) in clause (iii), by adding ``and'' after the semicolon 
     at the end; and
       (ii) in clause (iv), by striking ``applicable;'' and all 
     that follows and inserting ``applicable, and the name of each 
     county or parish in which the farm products are growing or 
     located;''; and
       (D) by redesignating subparagraphs (D) through (I) as 
     subparagraphs (C) through (H), respectively;
       (2) in subsection (e)--
       (A) in paragraph (1)(A)--
       (i) in clause (ii)--

       (I) in subclause (III), by adding ``and'' after the 
     semicolon at the end; and
       (II) in subclause (IV), by striking ``crop year,'' and all 
     that follows and inserting ``crop year, and the name of each 
     county or parish in which the farm products are growing or 
     located;''; and

       (iii) in clause (v), by inserting ``contains'' before ``any 
     payment''; and
       (B) in paragraph (3)--
       (i) in subparagraph (A), by striking ``subparagraph'' and 
     inserting ``subsection''; and
       (ii) in subparagraph (B), by striking ``; and'' and 
     inserting a period; and
       (3) subsection (g)(2)(A)--
       (A) in clause (ii)--
       (i) in subclause (III), by adding ``and'' after the 
     semicolon at the end; and
       (ii) in subclause (IV), by striking ``crop year,'' and all 
     that follows and inserting ``crop year, and the name of each 
     county or parish in which the farm products are growing or 
     located;''; and
       (B) in clause (v), by inserting ``contains'' before ``any 
     payment''.

     SEC. 1024. PENALTIES AND FOREIGN COMMERCE PROVISIONS OF THE 
                   ANIMAL WELFARE ACT.

       (a) Penalties and Foreign Commerce Provisions of the Animal 
     Welfare Act.--Section 26 of the Animal Welfare Act (7 U.S.C. 
     2156) is amended--
       (1) in subsection (e)--
       (A) by inserting ``Penalties.--'' after ``(e)'';
       (B) by striking ``$5,000'' and inserting ``$15,000''; and
       (C) by striking ``1 year'' and inserting ``2 years''; and
       (2) in subsection (g)(2)(B), by inserting at the end before 
     the semicolon the following: ``or from any State into any 
     foreign country''.
       (b) Effective Date.--The amendments made by this section 
     take effect 30 days after the date of the enactment of this 
     Act.

     SEC. 1025. PROHIBITION ON INTERSTATE MOVEMENT OF ANIMALS FOR 
                   ANIMAL FIGHTING.

       (a) Prohibition on Interstate Movement of Animals for 
     Animal Fighting.--Section 26(d) of the Animal Welfare Act (7 
     U.S.C. 2156(d)) is amended to read as follows:
       ``(d) Activities Not Subject to Prohibition.--This section 
     does not apply to the selling, buying, transporting, or 
     delivery of an animal in interstate or foreign commerce for 
     any purpose, so long as the purpose does not include 
     participation of the animal in an animal fighting venture.''.
       (b) Effective Date.--The amendment made by this section 
     take effect 30 days after the date of the enactment of this 
     Act.

     SEC. 1026. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED 
                   FARMERS AND RANCHERS.

       Section 2501 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 2279) is amended by striking 
     subsection (a) and inserting the following:
       ``(a) Outreach and Assistance.--
       ``(1) Definitions.--In this subsection:
       ``(A) Department.--The term `Department' means the 
     Department of Agriculture.
       ``(B) Eligible entity.--The term `eligible entity' means--
       ``(i) any community-based organization, network, or 
     coalition of community-based organizations that--

       ``(I) has demonstrated experience in providing agricultural 
     education or other agriculturally related services to 
     socially disadvantaged farmers and ranchers;
       ``(II) has provided to the Secretary documentary evidence 
     of work with socially disadvantaged farmers and ranchers 
     during the 2-year period preceding the submission of an 
     application for assistance under this subsection; and
       ``(III) has not engaged in activities prohibited under 
     section 501(c)(3) of the Internal Revenue Code of 1986;

       ``(ii)(I) an 1890 institution (as defined in section 2 of 
     the Agricultural Research, Extension, and Education Reform 
     Act of 1998 (7 U.S.C. 7601)), including West Virginia State 
     College;
       ``(II) a 1994 institution (as defined in section 2 of that 
     Act);
       ``(III) an Indian tribal community college;
       ``(IV) an Alaska Native cooperative college;
       ``(V) a Hispanic-serving institution (as defined in section 
     1404 of the National Agricultural Research, Extension, and 
     Teaching Policy Act of 1977 (7 U.S.C. 3103)); and

[[Page S12967]]

       ``(VI) any other institution of higher education (as 
     defined in section 101 of the Higher Education Act of 1965 
     (20 U.S.C. 1001)) that has demonstrated experience in 
     providing agriculture education or other agriculturally 
     related services to socially disadvantaged farmers and 
     ranchers in a region; and
       ``(iii) an Indian tribe (as defined in section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b)) or a national tribal organization that has 
     demonstrated experience in providing agriculture education or 
     other agriculturally related services to socially 
     disadvantaged farmers and ranchers in a region.
       ``(C) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(2) Program.--The Secretary shall carry out an outreach 
     and technical assistance program to encourage and assist 
     socially disadvantaged farmers and ranchers--
       ``(A) in owning and operating farms and ranches; and
       ``(B) in participating equitably in the full range of 
     agricultural programs offered by the Department.
       ``(3) Requirements.--The outreach and technical assistance 
     program under paragraph (2) shall--
       ``(A) enhance coordination of the outreach, technical 
     assistance, and education efforts authorized under various 
     agriculture programs; and
       ``(B) include information on, and assistance with--
       ``(i) commodity, conservation, credit, rural, and business 
     development programs;
       ``(ii) application and bidding procedures;
       ``(iii) farm and risk management;
       ``(iv) marketing; and
       ``(v) other activities essential to participation in 
     agricultural and other programs of the Department.
       ``(4) Grants and contracts.--
       ``(A) In general.--The Secretary may make grants to, and 
     enter into contracts and other agreements with, an eligible 
     entity to provide information and technical assistance under 
     this subsection.
       ``(B) Relationship to other law.--The authority to carry 
     out this section shall be in addition to any other authority 
     provided in this or any other Act.
       ``(5) Funding.--
       ``(A) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $25,000,000 
     for each of fiscal years 2002 through 2006.
       ``(B) Interagency funding.--In addition to funds authorized 
     to be appropriated under subparagraph (A), any agency of the 
     Department may participate in any grant, contract, or 
     agreement entered into under this section by contributing 
     funds, if the agency determined that the objectives of the 
     grant, contract, or agreement will further the authorized 
     programs of the contributing agency.''.

     SEC. 1027. PUBLIC DISCLOSURE REQUIREMENTS FOR COUNTY 
                   COMMITTEE ELECTIONS.

       Section 8(b)(5) of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590h(b)(5)) is amended by striking 
     subparagraph (B) and inserting the following:
       ``(B) Establishment and elections for county, area, or 
     local committees.--
       ``(i) Establishment.--

       ``(I) In general.--In each county or area in which 
     activities are carried out under this section, the Secretary 
     shall establish a county or area committee.
       ``(II) Local administrative areas.--The Secretary may 
     designate local administrative areas within a county or a 
     larger area under the jurisdiction of a committee established 
     under subclause (I).

       ``(ii) Composition of county, area, or local committees.--A 
     committee established under clause (i) shall consist of not 
     fewer than 3 nor more than 5 members that--

       ``(I) are fairly representative of the agricultural 
     producers within the area covered by the county, area, or 
     local committee; and
       ``(II) are elected by the agricultural producers that 
     participate or cooperate in programs administered within the 
     area under the jurisdiction of the county, area, or local 
     committee.

       ``(iii) Elections.--

       ``(I) In general.--Subject to subclauses (II) through (V), 
     the Secretary shall establish procedures for nominations and 
     elections to county, area, or local committees.
       ``(II) Nondiscrimination statement.--Each solicitation of 
     nominations for, and notice of elections of, a county, area, 
     or local committee shall include the nondiscrimination 
     statement used by the Secretary.
       ``(III) Nominations.--

       ``(aa) Eligibility.--To be eligible for nomination and 
     election to the applicable county, area, or local committee, 
     as determined by the Secretary, an agricultural producer 
     shall be located within the area under the jurisdiction of a 
     county, area, or local committee, and participate or 
     cooperate in programs administered within that area.
       ``(bb) Outreach.--In addition to such nominating procedures 
     as the Secretary may prescribe, the Secretary shall solicit 
     and accept nominations from organizations representing the 
     interests of socially disadvantaged groups (as defined in 
     section 355(e)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2003(e)(1)).

       ``(IV) Opening of ballots.--

       ``(aa) Public notice.--At least 10 days before the date on 
     which ballots are to be opened and counted, a county, area, 
     or local committee shall announce the date, time, and place 
     at which election ballots will be opened and counted.
       ``(bb) Opening of ballots.--Election ballots shall not be 
     opened until the date and time announced under item (aa).
       ``(cc) Observation.--Any person may observe the opening and 
     counting of the election ballots.

       ``(V) Report of election.--Not later than 20 days after the 
     date on which an election is held, a county, area, or local 
     committee shall file an election report with the Secretary 
     and the State office of the Farm Service Agency that 
     includes--

       ``(aa) the number of eligible voters in the area covered by 
     the county, area, or local committee;
       ``(bb) the number of ballots cast in the election by 
     eligible voters (including the percentage of eligible voters 
     that cast ballots);
       ``(cc) the number of ballots disqualified in the election;
       ``(dd) the percentage that the number of ballots 
     disqualified is of the number of ballots received;
       ``(ee) the number of nominees for each seat up for 
     election;
       ``(ff) the race, ethnicity, and gender of each nominee, as 
     provided through the voluntary self-identification of each 
     nominee; and
       ``(gg) the final election results (including the number of 
     ballots received by each nominee).

       ``(VI) National report.--Not later than 90 days after the 
     date on which the first election of a county, area, or local 
     committee that occurs after the date of enactment of the 
     Agriculture, Conservation, and Rural Enhancement Act of 2001 
     is held, the Secretary shall complete a report that 
     consolidates all the election data reported to the Secretary 
     under subclause (V).
       ``(VII) Election reform.--

       ``(aa) Analysis.--If determined necessary by the Secretary 
     after analyzing the data contained in the report under 
     subclause (VI), the Secretary shall promulgate and publish in 
     the Federal Register proposed uniform guidelines for 
     conducting elections for members and alternate members of 
     county, area, and local committees not later than 1 year 
     after the date of completion of the report.
       ``(bb) Inclusion.--The procedures promulgated by the 
     Secretary under item (aa) shall ensure fair representation of 
     socially disadvantaged groups described in subclause 
     (III)(bb) in an area covered by the county, area, or local 
     committee, in cases in which those groups are 
     underrepresented on the county, area, or local committee for 
     that area.
       ``(cc) Methods of inclusion.--Notwithstanding clause (ii), 
     the Secretary may ensure inclusion of socially disadvantaged 
     farmers and ranchers through provisions allowing for 
     appointment of additional voting members to a county, area, 
     or local committee or through other methods.
       ``(iv) Term of office.--The term of office for a member of 
     a county, area, or local committee shall not exceed 3 
     years.''.

     SEC. 1028. PSEUDORABIES ERADICATION PROGRAM.

       Section 2506(d) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (21 U.S.C. 114i(d)) is amended by striking 
     ``2002'' and inserting ``2006''.

     SEC. 1029. TREE ASSISTANCE PROGRAM.

       (a) In General.--Section 194 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (Public Law 104-127; 110 
     Stat. 945) is amended to read as follows:

     ``SEC. 194. TREE ASSISTANCE PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Eligible orchardist.--The term `eligible orchardist' 
     means a person that produces annual crops from trees for 
     commercial purposes,
       ``(2) Natural disaster.--The term `natural disaster' means 
     plant disease, insect infestation, drought, fire, freeze, 
     flood, earthquake, and other natural occurrences, as 
     determined by the Secretary.
       ``(3) Tree.--The term `tree' includes trees, bushes, and 
     vines.
       ``(4) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(b) Eligibility.--
       ``(1) Loss.--Subject to paragraph (2), the Secretary shall 
     provide assistance in accordance with subsection (c) to 
     eligible orchardists that, as determined by the Secretary--
       ``(A) planted trees for commercial purposes; and
       ``(B) lost those trees as a result of a natural disaster.
       ``(2) Limitation.--An eligible orchardist shall qualify for 
     assistance under subsection (c) only if the tree mortality 
     rate of the orchardist, as a result of the natural disaster, 
     exceeds 15 percent (adjusted for normal mortality), as 
     determined by the Secretary.
       ``(c) Assistance.--
       ``(1) In general.--Assistance provided by the Secretary to 
     eligible orchardists for losses described in subsection (b) 
     shall consist of--
       ``(A) reimbursement of 75 percent of the cost of replanting 
     trees lost due to a natural disaster, as determined by the 
     Secretary, in excess of 15 percent mortality (adjusted for 
     normal mortality); or
       ``(B) at the discretion of the Secretary, sufficient tree 
     seedlings to reestablish the stand.
       ``(2) Limitation on Assistance.--
       ``(A) Limitation.--The total amount of payments that a 
     person may receive under this section shall not exceed--
       ``(i) $100,000; or
       ``(ii) an equivalent value in tree seedlings.
       ``(B) Regulations.--The Secretary shall promulgate 
     regulations that--

[[Page S12968]]

       ``(i) define the term `person' for the purposes of this 
     section (which definition shall conform, to the extent 
     practicable, to the regulations defining the term `person' 
     promulgated under section 1001 of the Food Security Act of 
     1985 (7 U.S.C. 1308); and
       ``(ii) prescribe such rules as the Secretary determines are 
     necessary to ensure a fair and reasonable application of the 
     limitation established under this section.
       ``(d) Authorization of appropriations.--Notwithstanding 
     section 161, there is authorized to be appropriated such sums 
     as are necessary to carry out this section for each of fiscal 
     years 2002 through 2006.''.
       (b) Application Date.--The amendment made by subsection (a) 
     shall apply to tree losses that are incurred as a result of a 
     natural disaster after January 1, 2000.

     SEC. 1030. NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM.

       (a) In General.--The Secretary of Agriculture (acting 
     through the Agricultural Marketing Service) shall use 
     $3,500,000 of funds of the Commodity Credit Corporation for 
     fiscal year 2002 to establish a national organic 
     certification cost-share program to assist producers and 
     handlers of agricultural products in obtaining certification 
     under the national organic production program established 
     under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 
     et seq.).
       (b) Federal Share.--
       (1) In general.--Subject to paragraph (2), the Secretary 
     shall pay under this section not more than 75 percent of the 
     costs incurred by a producer or handler in obtaining 
     certification under the national organic production program, 
     as certified to and approved by the Secretary.
       (2) Maximum amount.--The maximum amount of a payment made 
     to a producer or handler under this section shall be $500.

     SEC. 1031. FOOD SAFETY COMMISSION.

       (a) Establishment.--
       (1) In general.--There is established a commission to be 
     known as the ``Food Safety Commission'' (referred to in this 
     section as the ``Commission'').
       (2) Membership.--
       (A) Composition.--The Commission shall be composed of 15 
     members, of whom--
       (i) 4 shall be appointed by the Majority Leader of the 
     Senate;
       (ii) 3 shall be appointed by the Minority Leader of the 
     Senate;
       (iii) 4 shall be appointed by the Speaker of the House of 
     Representatives;
       (iv) 3 shall be appointed by the Minority Leader of the 
     House of Representatives; and
       (v) 1 shall--

       (I) be appointed jointly by the Speaker of the House of 
     Representatives and the Majority Leader of the Senate; and
       (II) serve as chairperson.

       (B) Eligibility.--Members of the Commission--
       (i) shall be knowledgeable or have expertise or training in 
     matters under the jurisdiction of the Commission;
       (ii) shall represent, at a minimum--

       (I) consumer groups;
       (II) food processors, producers, and retailers;
       (III) public health professionals;
       (IV) food inspectors;
       (V) former or current food safety regulators;
       (VI) members of academia; or
       (VII) any other interested individuals; and

       (iii) shall not be Federal employees.
       (C) Date of appointments.--The appointment of a member of 
     the Commission shall be made not later than 60 days after the 
     date of enactment of this Act.
       (D) Consultation.--The Speaker of the House of 
     Representatives, the Minority Leader of the House of 
     Representatives, the Majority Leader of the Senate, and the 
     Minority Leader of the Senate shall consult among themselves 
     prior to appointing the members of the Commission under 
     subparagraph (A) to achieve, to the maximum extent 
     practicable--
       (i) consensus on the appointments; and
       (ii) fair and equitable representation of various points of 
     view with respect to matters reviewed by the Commission.
       (E) Vacancies.--A vacancy on the Commission--
       (i) shall not affect the powers of the Commission; and
       (ii) shall be filled--

       (I) not later than 60 days after the date on which the 
     vacancy occurs; and
       (II) in the same manner as the original appointment was 
     made.

       (3) Meetings.--
       (A) Initial meeting.--The initial meeting of the Commission 
     shall be conducted not later than 30 days after the later 
     of--
       (i) the date of appointment of the final member of the 
     Commission; or
       (ii) the date on which funds authorized to be appropriated 
     under subsection (f)(1) are made available.
       (B) Other meetings.--The Commission shall meet at the call 
     of the Chairperson.
       (4) Quorum; standing rules.--
       (A) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum to conduct business.
       (B) Standing rules.--At the first meeting of the 
     Commission, the Commission shall adopt standing rules of the 
     Commission to guide the conduct of business and 
     decisionmaking of the Commission.
       (C) Consensus.--
       (i) In general.--To the maximum extent practicable, the 
     Commission shall carry out the duties of the Commission by 
     reaching consensus.
       (ii) Voting.--

       (I) In general.--If the Commission is unable to achieve 
     consensus with respect to a particular decision, the 
     Commission shall vote on the decision.
       (II) Authority.--Each member of the Commission shall have 1 
     vote, which vote shall be accorded the same weight as a vote 
     of each other voting member.

       (b) Duties.--
       (1) Recommendations.--
       (A) In general.--The Commission shall make specific 
     recommendations that build on and implement, to the maximum 
     extent practicable, the recommendations contained in the 
     report of the National Academy of Sciences entitled 
     ``Ensuring Safe Food from Production to Consumption'' and 
     that shall serve as the basis for draft legislative language 
     to--
       (i) improve the food safety system;
       (ii) improve public health;
       (iii) create a harmonized, central framework for managing 
     Federal food safety programs (including outbreak management, 
     standard-setting, inspection, monitoring, surveillance, risk 
     assessment, enforcement, research, and education);
       (iv) enhance the effectiveness of Federal food safety 
     resources; and
       (v) eliminate, to the maximum extent practicable, gaps, 
     conflicts, duplication, and failures in the food safety 
     system.
       (B) Components.--Recommendations made by the Commission 
     under subparagraph (A) shall, at a minimum, address--
       (i) all food available commercially in the United States, 
     including meat, poultry, eggs, seafood, and produce;
       (ii) the application of all resources based on risk, 
     including resources for inspection, research, enforcement, 
     and education;
       (iii) shortfalls, redundancy, and inconsistency in laws 
     (including regulations); and
       (iv) the use of science-based methods, performance 
     standards, and preventative control systems to ensure the 
     safety of the food supply of the United States.
       (2) Report.--Not later than 1 year after the date on which 
     the Commission first meets, the Commission shall submit to 
     the President and Congress a comprehensive report that 
     includes--
       (A) the findings, conclusions, and recommendations of the 
     Commission;
       (B) a summary of any reports submitted to the Commission 
     under subsection (e) by--
       (i) the Advisory Commission on Intergovernmental Relations; 
     and
       (ii) the National Academy of Sciences;
       (C) a summary of any other material used by the Commission 
     in the preparation of the report under this paragraph; and
       (D) if requested by 1 or more members of the Commission, a 
     statement of the minority views of the Commission.
       (c) Powers of the Commission.--
       (1) Hearings.--The Commission or, at the direction of the 
     Commission, any subcommittee or member of the Commission, 
     may, for the purpose of carrying out this section hold such 
     hearings, meet and act at such times and places, take such 
     testimony, receive such evidence, and administer such oaths, 
     as the Commission or such subcommittee or member considers 
     advisable.
       (2) Witness allowances and fees.--
       (A) In general.--Section 1821 of title 28, United States 
     Code, shall apply to a witness requested to appear at a 
     hearing of the Commission.
       (B) Expenses.--The per diem and mileage allowances for a 
     witness shall be paid from funds available to pay the 
     expenses of the Commission.
       (3) Information from federal agencies.--
       (A) In general.--The Commission may secure directly, from 
     any Federal Department or agency, such information as the 
     Commission considers necessary to carry out the duties of the 
     Commission under subsection (b).
       (B) Provision of information.--
       (i) In general.--Subject to subparagraph (C), on the 
     request of the Commission, the head of a department or agency 
     described in subparagraph (A) shall furnish information 
     requested by the Commission to the Commission.
       (ii) Administration.--The furnishing of information by a 
     department or agency to the Commission shall not be 
     considered a waiver of any exemption available to the 
     department or agency under section 552 of title 5, United 
     States Code.
       (C) Information to be kept confidential.--
       (i) In general.--For purposes of section 1905 of title 18, 
     United States Code--

       (I) the Commission shall be considered an agency of the 
     Federal Government; and
       (II) any individual employed by an individual, entity, or 
     organization that is a party to a contract with the 
     Commission under subsection (e) shall be considered an 
     employee of the Commission.

       (ii) Prohibition on disclosure.--Information obtained by 
     the Commission, other than information that is available to 
     the public, shall not be disclosed to any person in any 
     manner except--

       (I) to an employee of the Commission described in clause 
     (i), for the purpose of receiving, reviewing, or processing 
     the information;
       (II) in compliance with a court order; or
       (III) in any case in which the information is publicly 
     released by the Commission in an aggregate or summary form 
     that does not directly or indirectly disclose--

[[Page S12969]]

       (aa) the identity of any person or business entity; or
       (bb) any information the release of which is prohibited 
     under section 1905 of title 18, United States Code.
       (d) Commission Personnel Matters.--
       (1) Compensation of members.--A member of the Commission 
     shall be compensated at a rate equal to the daily equivalent 
     of the annual rate of basic pay prescribed for level IV of 
     the Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which the member is engaged in the performance of the duties 
     of the Commission.
       (2) Travel expenses.--A member of the Commission shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for an employee of an agency 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from the home or regular place of business 
     of the member in the performance of the duties of the 
     Commission.
       (3) Staff.--
       (A) In general.--The Chairperson of the Commission may, 
     without regard to the civil service laws (including 
     regulations), appoint and terminate an executive director and 
     such other additional personnel as are necessary to enable 
     the Commission to perform the duties of the Commission.
       (B) Confirmation of executive director.--The employment of 
     an executive director shall be subject to confirmation by the 
     Commission.
       (C) Compensation.--
       (i) In general.--Except as provided in clause (ii), the 
     Chairperson of the Commission may fix the compensation of the 
     executive director and other personnel without regard to the 
     provisions of chapter 51 and subchapter III of chapter 53 of 
     title 5, United States Code, relating to classification of 
     positions and General Schedule pay rates.
       (ii) Maximum rate of pay.--The rate of pay for the 
     executive director and other personnel shall not exceed the 
     rate payable for level V of the Executive Schedule under 
     section 5316 of title 5, United States Code.
       (4) Detail of federal government employees.--
       (A) In general.--Notwithstanding any other provision of law 
     (including an Act of appropriation), an employee of the 
     Federal Government may be detailed to the Commission, without 
     reimbursement, for such period of time as the Commission may 
     require.
       (B) Civil service status.--The detail of the employee shall 
     be without interruption or loss of civil service status or 
     privilege.
       (5) Procurement of temporary and intermittent services.--
     The Chairperson of the Commission may procure temporary and 
     intermittent services in accordance with section 3109(b) of 
     title 5, United States Code, at rates for individuals that do 
     not exceed the daily equivalent of the annual rate of basic 
     pay prescribed for level V of the Executive Schedule under 
     section 5316 of that title.
       (e) Contracts for Research.--
       (1) Advisory commission on intergovernmental relations.--
       (A) In general.--In carrying out the duties of the 
     Commission under subsection (b), the Commission may enter 
     into contracts with the Advisory Commission on 
     Intergovernmental Relations under which the Advisory 
     Commission on Intergovernmental Relations shall conduct a 
     thorough review of, and shall catalogue, all applicable 
     Federal, State, local, and tribal laws, regulations, and 
     ordinances that pertain to food safety in the United States.
       (B) Report.--A contract under subparagraph (A) shall 
     require that, not later than 240 days after the date on which 
     the Commission first meets, the Advisory Commission on 
     Intergovernmental Relations shall submit to the Commission a 
     report that describes the results of the services rendered by 
     the Advisory Commission on Intergovernmental Relations under 
     the contract.
       (2) National academy of sciences.--
       (A) In general.--In carrying out the duties of the 
     Commission under subsection (b), the Commission may enter in 
     contracts with the National Academy of Sciences to obtain 
     research or other assistance.
       (B) Report.--A contract under subparagraph (A) shall 
     require that, not later than 240 days after the date on which 
     the Commission first meets, the National Academy of Sciences 
     shall submit to the Commission a report that describes the 
     results of the services to be rendered by the National 
     Academy of Sciences under the contract.
       (3) Other organizations.--Nothing in this subsection limits 
     or otherwise affects the ability of the Commission to enter 
     into a contract with an entity or organization that is not 
     described in paragraph (1) or (2) to obtain assistance in 
     conducting research necessary to carry out the duties of the 
     Commission under subsection (b).
       (f) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated to 
     carry out this section $3,000,000.
       (2) Limitation.--No payment may be made under subsection 
     (d) or (e) except to the extent provided for in advance in an 
     appropriations Act.
       (g) Termination.--The Commission shall terminate on the 
     date that is 60 days after the date on which the Commission 
     submits the recommendations and report under subsection (b).

     SEC. 1032. HUMANE METHODS OF ANIMAL SLAUGHTER.

       It is the sense of Congress that--
       (1) the Secretary of Agriculture should--
       (A) resume tracking the number of violations of Public Law 
     85-765 (7 U.S.C. 1901 et seq.) and report the results and 
     relevant trends annually to Congress; and
       (B) fully enforce Public Law 85-765 by ensuring that humane 
     methods in the slaughter of livestock--
       (i) prevent needless suffering;
       (ii) result in safer and better working conditions for 
     persons engaged in the slaughtering of livestock;
       (iii) bring about improvement of products and economies in 
     slaughtering operations; and
       (iv) produce other benefits for producers, processors, and 
     consumers that tend to expedite an orderly flow of livestock 
     and livestock products in interstate and foreign commerce; 
     and
       (2) it should be the policy of the United States that the 
     slaughtering of livestock and the handling of livestock in 
     connection with slaughter shall be carried out only by humane 
     methods.

     SEC. 1033. PENALTIES FOR VIOLATIONS OF PLANT PROTECTION ACT.

       Section 424 of the Plant Protection Act (7 U.S.C. 7734) is 
     amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Criminal Penalties.--
       ``(1) In general.--A person that knowingly violates this 
     title shall be subject to criminal penalties in accordance 
     with this subsection.
       ``(2) Felonies.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), a 
     person shall be imprisoned not more than 5 years, fined not 
     more than $25,000, or both, in the case of a violation of 
     this title involving--
       ``(i) plant pests;
       ``(ii) more than 50 pounds of plants;
       ``(iii) more than 5 pounds of plant products;
       ``(iv) more than 50 pounds of noxious weeds;
       ``(v) possession with intent to distribute or sell items 
     described in clause (i), (ii), (iii), or (iv), knowing the 
     items have been involved in a violation of this title; or
       ``(vi) forging, counterfeiting, or without authority from 
     the Secretary, using, altering, defacing, or destroying a 
     certificate, permit, or other document provided under this 
     title.
       ``(B) Multiple violations.--On the second and any 
     subsequent conviction of a person of a violation of this 
     title described in subparagraph (A), the person shall be 
     imprisoned not more than 10 years or fined not more than 
     $50,000, or both.
       ``(C) Intent to harm agriculture of united states.--In the 
     case of a knowing movement in violation of this title by a 
     person of a plant, plant product, biological control 
     organism, plant pest, noxious weed, article, or means of 
     conveyance into, out of, or within the United States, with 
     the intent to harm the agriculture of the United States by 
     introduction into the United States or dissemination of a 
     plant pest or noxious weed within the United States, the 
     person shall be imprisoned not less than 10 nor more than 20 
     years, fined not more than $500,000, or both.
       ``(3) Misdemeanors.--
       ``(A) In general.--Subject to subparagraph (B), a person 
     shall be imprisoned not more than 1 year, fined not more than 
     $1,000, or both, in the case of a violation of this title 
     involving--
       ``(i) 50 pounds or less of plants;
       ``(ii) 5 pounds or less of plant products; or
       ``(iii) 50 pounds or less of noxious weeds.
       ``(B) Multiple violations.--On the second and any 
     subsequent conviction of a person of a violation of this 
     title described in subparagraph (A), the person shall be 
     imprisoned not more than 3 years, fined not more than 
     $10,000, or both.'';
       (2) by redesignating subsections (b), (c), and (d) as 
     subsections (c), (e), (f), respectively;
       (3) by inserting after subsection (a) the following:
       ``(b) Criminal Forfeiture.--
       ``(1) In general.--In imposing a sentence on a person 
     convicted of a violation of this title, in addition to any 
     other penalty imposed under this section and irrespective of 
     any provision of State law, a court shall order that the 
     person forfeit to the United States--
       ``(A) any of the property of the person used to commit or 
     to facilitate the commission of the violation (other than a 
     misdemeanor); and
       ``(B) any property, real or personal, constituting, derived 
     from, or traceable to any proceeds that the person obtained 
     directly or indirectly as a result of the violation.
       ``(2) Procedures.--All property subject to forfeiture under 
     this subsection, any seizure and disposition of the property, 
     and any proceeding relating to the forfeiture shall be 
     subject to the procedures of section 413 of the Comprehensive 
     Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 
     853), other than subsections (d) and (q).
       ``(3) Proceeds.--The proceeds from the sale of any 
     forfeited property, and any funds forfeited, under this 
     subsection shall be used--
       ``(A) first, to reimburse the Department of Justice, the 
     United States Postal Service, and the Department of the 
     Treasury for any costs incurred by the Departments and the 
     Service to initiate and complete the forfeiture proceeding;
       ``(B) second, to reimburse the Office of Inspector General 
     of the Department of Agriculture for any costs incurred by 
     the Office

[[Page S12970]]

     in the law enforcement effort resulting in the forfeiture;
       ``(C) third, to reimburse any Federal or State law 
     enforcement agency for any costs incurred in the law 
     enforcement effort resulting in the forfeiture; and
       ``(D) fourth, by the Secretary to carry out the functions 
     of the Secretary under this title.''; and
       (4) by inserting after subsection (c) (as redesignated by 
     paragraph (2)) the following:
       ``(d) Civil Forfeiture.--
       ``(1) In general.--There shall be subject to forfeiture to 
     the United States any property, real or personal--
       ``(A) used to commit or to facilitate the commission of a 
     violation (other than a misdemeanor) described in subsection 
     (a); or
       ``(B) constituting, derived from, or traceable to proceeds 
     of a violation described in subsection (a).
       ``(2) Procedures.--
       ``(A) In general.--Subject to subparagraph (B), the 
     procedures of chapter 46 of title 18, United States Code, 
     relating to civil forfeitures shall apply to a seizure or 
     forfeiture under this subsection, to the extent that the 
     procedures are applicable and consistent with this 
     subsection.
       ``(B) Performance of duties.--Duties imposed on the 
     Secretary of the Treasury under chapter 46 of title 18, 
     United States Code, shall be performed with respect to 
     seizures and forfeitures under this subsection by officers, 
     employees, agents, and other persons designated by the 
     Secretary of Agriculture.'.

     SEC. 1034. CONNECTICUT RIVER ATLANTIC SALMON COMMISSION.

       (a) Effective Period.--Section 3(2) of Public Law 98-138 
     (Public Law 98-138; 97 Stat. 870) is amended by striking 
     ``twenty'' and inserting ``40''.
       (b) Authorization of Appropriations.--Public Law 98-138 (97 
     Stat. 866) is amended by adding at the end the following:

     ``SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

       ``There is authorized to be appropriated to the Secretary 
     of the Interior to carry out the activities of the 
     Connecticut River Atlantic Salmon Commission $9,000,000 for 
     each of fiscal years 2002 through 2010.''.
                       Subtitle D--Administration

     SEC. 1041. REGULATIONS.

         (a) In General.--The Secretary of Agriculture may 
     promulgate such regulations as are necessary to implement 
     this Act and the amendments made by this Act.
         (b) Procedure.--The promulgation of the regulations and 
     administration of title I and sections 456 and 508 and the 
     amendments made by title I and sections 456 and 508 shall be 
     made without regard to--
       (1) the notice and comment provisions of section 553 of 
     title 5, United States Code;
       (2) the Statement of Policy of the Secretary of Agriculture 
     effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
     notices of proposed rulemaking and public participation in 
     rulemaking; and
       (3) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'').
       (c) Congressional Review of Agency Rulemaking.--In carrying 
     out subsection (b), the Secretary shall use the authority 
     provided under section 808 of title 5, United States Code.

     SEC. 1042. EFFECT OF AMENDMENTS.

       (a) In General.--Except as otherwise specifically provided 
     in this Act and notwithstanding any other provision of law, 
     this Act and the amendments made by this Act shall not affect 
     the authority of the Secretary of Agriculture to carry out an 
     agricultural market transition, price support, or production 
     adjustment program for any of the 1996 through 2001 crop, 
     fiscal, or calendar years under a provision of law in effect 
     immediately before the date of enactment of this Act.
       (b) Liability.--A provision of this Act or an amendment 
     made by this Act shall not affect the liability of any person 
     under any provision of law as in effect immediately before 
     the date of enactment of this Act.
                                  ____

  SA 2472. Mr. CRAPO (for himself, Mr. Bingaman, Mr. Domenici, Mr. 
Brownback, Mr. Craig, and Mr. Voinovich) proposed an amendment to 
amendment SA 2471 proposed by Mr. Daschle to the bill (S. 1731) to 
strengthen the safety net for agricultural producers, to enhance 
resource conservation and rural development, to provide for farm 
credit, agricultural research, nutrition, and related programs, to 
ensure consumers abundant food and fiber, and for other purposes; as 
follows:

       Strike section 132 and insert the following:

     SEC. 132. STUDY OF NATIONAL DAIRY POLICY.

       (a) Study Required.--Not later than April 30, 2002, the 
     Secretary of Agriculture shall submit to Congress a 
     comprehensive economic evaluation of the potential direct and 
     indirect effects of the various elements of the national 
     dairy policy, including an examination of the effect of the 
     national dairy policy on--
       (1) farm price stability, farm profitability and viability, 
     and local rural economies in the United States;
       (2) child, senior, and low-income nutrition programs, 
     including impacts on schools and institutions participating 
     in the programs, on program recipients, and other factors; 
     and
       (3) the wholesale and retail cost of fluid milk, dairy 
     farms, and milk utilization.
       (b) National Dairy Policy Defined.--In this section, the 
     term ``national dairy policy'' means the dairy policy of the 
     United States as evidenced by the following policies and 
     programs:
       (1) Federal Milk Marketing Orders.
       (2) Interstate dairy compacts (including proposed compacts 
     described in H.R. 1827 and S. 1157, as introduced in the 
     107th Congress).
       (3) Over-order premiums and State pricing programs.
       (4) Direct payments to milk producers.
       (5) Federal milk price support program.
       (6) Export programs regarding milk and dairy products, such 
     as the Dairy Export Incentive Program.
                                  ____

  SA 2473. Mr. LUGAR (for himself and Mr. Domenici) proposed an 
amendment to amendment SA 2471 proposed by Mr. Daschle to the bill (S. 
1731) to strengthen the safety net for agricultural producers, to 
enhance resource conservation and rural development, to provide for 
farm credit, agricultural research, nutrition, and related programs, to 
ensure consumers abundant food and fiber, and for other purposes; as 
follows:

       Beginning on page 985, strike subtitle D and all that 
     follows through page 987, line 2 and insert the following:

                      TITLE XI--COMMODITY PROGRAMS

     SEC. 1101. SHORT TITLE.

       This title may be cited as the ``Farm Financial Protection 
     Act''.

     SEC. 1102. PURPOSES.

       The purposes of this title are--
       (1) to encourage producers to select strategies for 
     managing risk in the farming or ranching operation of the 
     producer by providing financial assistance that can be 
     applied to the risk management strategy that the producer 
     believes best addresses the unique financial, business, and 
     agricultural conditions of the farm or ranch of the producer; 
     and
       (2) to provide new programs that--
       (A) allow producers to address the risk management 
     strategies that best suit the farming or ranching operation 
     of the producer; and
       (B) do not distort commercial markets and are consistent 
     with international obligations of the United States.

                 Subtitle A--Farm Financial Protection

     SEC. 1111. DEFINITIONS.

       In this subtitle:
       (1) Adjusted gross revenue.--The term ``adjusted gross 
     revenue'' means the adjusted gross income for all 
     agricultural enterprises of a producer in an applicable year, 
     excluding revenue earned from nonagricultural sources, as 
     determined by the Secretary--
       (A) by taking into account gross receipts from the sale of 
     crops and livestock on all agricultural enterprises of the 
     producer, including insurance indemnities resulting from 
     losses in the agricultural enterprises;
       (B) by including all farm payments paid by the Secretary 
     for all agricultural enterprises of the producer, including--
       (i) a voucher received under section 1112; and
       (ii) any marketing loan gains described in section 
     1001(3)(A) of the Food Security Act of 1985 (7 U.S.C. 
     1308(3)(A));
       (C) by deducting the cost or basis of livestock or other 
     items purchased for resale, such as feeder livestock, on all 
     agricultural enterprises of the producer; and
       (D) as represented on--
       (i) a schedule F of the Federal income tax returns of the 
     producer; or
       (ii) a comparable tax form related to the agricultural 
     enterprises of the producer, as approved by the Secretary.
       (2) Agricultural commodity.--The term ``agricultural 
     commodity'' means any agricultural commodity, food, feed, 
     fiber, or livestock.
       (3) Agricultural enterprise.--The term ``agricultural 
     enterprise'' means the production and marketing of all 
     agricultural commodities (including livestock but excluding 
     tobacco) on a farm or ranch.
       (4) Applicable year.--The term ``applicable year'' means 
     the year during which the producer elects to receive a 
     voucher under a risk management contract.
       (5) Average adjusted gross revenue.--The term ``average 
     adjusted gross revenue'' means--
       (A) the average of the adjusted gross revenue of a producer 
     for each of the preceding 5 taxable years; or
       (B) in the case of a beginning farmer or rancher or other 
     producer that does not have adjusted gross revenue for each 
     of the preceding 5 taxable years, the estimated income of the 
     producer that will be earned from all agricultural 
     enterprises for the applicable year, as determined by the 
     Secretary.
       (6) Producer.--The term ``producer'' means an individual or 
     entity, as determined by the Secretary for an applicable 
     year, that--
       (A) shares in the risk of producing, or provides a material 
     contribution in producing, an agricultural commodity for the 
     applicable year;
       (B) has a substantial beneficial interest in the 
     agricultural enterprise in which the agricultural commodity 
     is produced;
       (C)(i) during each of the preceding 5 taxable years, has 
     filed--

[[Page S12971]]

       (I) a schedule F of the Federal income tax returns; or
       (II) a comparable tax form related to the agricultural 
     enterprises of the individual or entity, as approved by the 
     Secretary; or
       (ii) is a beginning farmer or rancher or other producer 
     that does not have adjusted gross revenue for each of the 
     preceding 5 taxable years, as determined by the Secretary; 
     and
       (D)(i) has earned at least $20,000 in average adjusted 
     gross revenue for each of the preceding 5 taxable years;
       (ii) is a limited resource farmer or rancher, as determined 
     by the Secretary; or
       (iii) in the case of a beginning farmer or rancher or other 
     producer that does not have adjusted gross revenue for each 
     of the preceding 5 taxable years, has at least $20,000 in 
     estimated income from all agricultural enterprises for the 
     applicable year, as determined by the Secretary.
       (7) Risk management contract.--The term ``risk management 
     contract'' means a contract entered into under section 1112 
     annually for each applicable year.
       (8) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.

     SEC. 1112. RISK MANAGEMENT CONTRACT.

       (a) Offer.--The Secretary shall offer to enter into a risk 
     management contract annually for each of the 2003 through 
     2006 crops with each producer that is engaged in the 
     production of an agricultural commodity for an applicable 
     year.
       (b) Voucher.--
       (1) In general.--Under a risk management contract, the 
     Secretary shall pay to a producer a voucher that is 
     equivalent in value to the average adjusted gross revenue of 
     the producer.
       (2) Payment rate.--The payment rate for a voucher each year 
     shall be equal to the total of--
       (A) 6 percent for the amount of the average adjusted gross 
     revenue of a producer that is less than $250,000;
       (B) 4 percent for the amount of the average adjusted gross 
     revenue of a producer that is $250,000 or more but less than 
     $500,000;
       (C) 1 percent for the amount of the average adjusted gross 
     revenue of a producer that is $500,000 or more but less than 
     $1,000,000; and
       (D) 0 percent for the amount of the average adjusted gross 
     revenue of a producer that is $1,000,000 or more.
       (c) Eligibility.--
       (1) In general.--An individual or entity may not receive 
     directly or indirectly a voucher that is equal in value to 
     more than $30,000 in a year.
       (2) Ineligible entities.--An entity shall be ineligible to 
     receive a voucher under this section if the entity is--
       (A) an agency of the Federal Government, a State, or a 
     political subdivision of a State;
       (B) an entity that has shares traded on a public stock 
     exchange; or
       (C) another entity, as determined by the Secretary.
       (3) Verification.--The Secretary shall determine which 
     individuals or entities are eligible for a voucher under this 
     section by using social security numbers or taxpayer 
     identification numbers, respectively.
       (d) Terms.--
       (1) In general.--In exchange for a voucher under a risk 
     management contract, a producer shall--
       (A) purchase whole farm revenue insurance coverage under 
     section 525 of the Federal Crop Insurance Act (as added by 
     section 1113(a)) that provides a revenue guarantee of at 
     least 80 percent of the average adjusted gross revenue of the 
     producer at a payment rate of 100 percent;
       (B) contribute an amount that is at least equal to the 
     amount of the voucher to an Account established under section 
     1114; or
       (C) redeem the voucher for a cash payment and use the 
     payment to carry out 1 or more risk management strategies for 
     the farm under section 1115 that are sufficient to guarantee 
     a net income from all agricultural enterprises of the 
     producer for the applicable year that is at least 80 percent 
     of the average adjusted gross revenue of the producer.
       (2) Conservation compliance.--In addition to implementing 1 
     of the risk management strategies under paragraph (1), a 
     producer shall agree, in exchange for a voucher, to--
       (A) comply with applicable highly erodible land 
     conservation requirements under subtitle B of title XII of 
     the Food Security Act of 1985 (16 U.S.C. 3811 et seq.); and
       (B) comply with applicable wetland conservation 
     requirements under subtitle C of title XII of that Act (16 
     U.S.C. 3821 et seq.).
       (3) Excess voucher amounts.--
       (A) Whole farm revenue insurance coverage.--If a producer 
     elects to use a voucher to purchase whole farm revenue 
     insurance coverage under section 525 of the Federal Crop 
     Insurance Act (as added by section 1113(a)) and the amount of 
     the voucher exceeds the premium for the coverage, the 
     producer may only deposit the amount of the voucher that 
     exceeds the premium into an Account in accordance with 
     section 1114.
       (B) Risk management options.--If a producer elects to use a 
     voucher to carry out 1 or more risk management strategies 
     under section 1115 and the amount of the voucher exceeds the 
     amount necessary to carry out the strategies, the producer 
     may only deposit the amount of the voucher that exceeds the 
     amount necessary to carry out the strategies into an Account 
     in accordance with section 1114.
       (4) Tenants and sharecroppers.--In carrying out this 
     subtitle, the Secretary shall provide adequate safeguards to 
     protect the interests of tenants and sharecroppers.
       (e) Administration.--
       (1) Application.--A producer that elects to enter into a 
     risk management contract for an applicable year shall submit 
     an application to the Secretary prior to the beginning of the 
     calendar year in which the voucher would be paid.
       (2) Payment of voucher.--The Secretary shall make available 
     to the producer the full amount of the voucher required to be 
     paid for the applicable year not earlier than October 1 of 
     the applicable year.
       (3) Internet.--The Secretary shall facilitate the contract 
     process required under this section, to the maximum extent 
     practicable, by using the Internet.
       (4) Compliance.--The Secretary shall perform random audits 
     of producers that enter into risk management contracts to 
     ensure that the producers comply with the risk management 
     contracts.
       (5) Violations.--If a producer has accepted a risk 
     management payment for an applicable year and the producer 
     fails to comply with subsection (d) with respect to the 
     applicable year, the producer--
       (A) shall refund to the Secretary an amount equal to the 
     amount of the voucher; and
       (B) may be determined to be ineligible to receive a voucher 
     under this subtitle for a period of not to exceed 5 years, as 
     determined by the Secretary.
       (f) Sharing of Benefits.--The Secretary shall provide for 
     the sharing of benefits under this subtitle among all 
     producers on a farm on a fair and equitable basis.
       (g) Commodity Credit Corporation.--The Secretary shall use 
     the funds, facilities, and authorities of the Commodity 
     Credit Corporation to carry out this section.

     SEC. 1113. WHOLE FARM REVENUE INSURANCE.

       (a) In General.--The Federal Crop Insurance Act (7 U.S.C. 
     1501 et. seq.) is amended by adding at the end the following:

     ``SEC. 525. WHOLE FARM REVENUE INSURANCE.

       ``(a) Definitions.--In this section:
       ``(1) Adjusted gross revenue.--The term `adjusted gross 
     revenue' means the adjusted gross income for all agricultural 
     enterprises of a producer, excluding revenue earned from 
     nonagricultural sources, as determined by the Secretary--
       ``(A) by taking into account gross receipts from the sale 
     of all crops and livestock on all agricultural enterprises of 
     the producer;
       ``(B) by deducting the cost or basis of livestock or other 
     items purchased for resale, such as feeder livestock, on all 
     agricultural enterprises of the producer; and
       ``(C) as represented on--
       ``(i) a schedule F of the Federal income tax returns; or
       ``(ii) a comparable tax form related to the agricultural 
     enterprises of the producer, as approved by the Secretary.
       ``(2) Agricultural commodity.--The term `agricultural 
     commodity' means any agricultural commodity, livestock (as 
     defined in section 523(b)(1)), food, feed, or fiber.
       ``(3) Agricultural enterprise.--The term `agricultural 
     enterprise' means the production and marketing of all 
     agricultural commodities (including livestock) on a farm or 
     ranch.
       ``(4) Average adjusted gross revenue.--The term `average 
     adjusted gross revenue' means--
       ``(A) the average adjusted gross revenue of a producer for 
     the preceding 5 taxable years; or
       ``(B) in the case of a beginning farmer or rancher or other 
     producer that does not have adjusted gross revenue for each 
     of the preceding 5 taxable years, the estimated income of the 
     producer that will be earned from all agricultural 
     enterprises for the applicable year, as determined by the 
     Secretary.
       ``(b) Revenue Insurance.--If a producer elects to use a 
     voucher in accordance with section 1112(d)(1)(A) of the Farm 
     and Ranch Equity Act of 2001, the producer may use the 
     voucher to obtain insurance that provides a revenue guarantee 
     for all agricultural enterprises of the producer.
       ``(c) Revenue Guarantee.--The amount of the revenue 
     guarantee for a policy of revenue insurance under this 
     section for the agricultural enterprises of a producer shall 
     be equal to the product obtained by multiplying--
       ``(1) the coverage level; by
       ``(2) the average adjusted gross revenue of the producer.
       ``(d) Coverage Level.--The coverage level for whole farm 
     revenue insurance under this section shall be 80 percent of 
     the average adjusted gross revenue of a producer.
       ``(e) Purchase of Multiperil or Revenue Coverages.--A 
     producer that purchases coverage under this section shall not 
     be required to purchase other policies of multiperil or 
     revenue coverage under this title.
       ``(f) Administration.--In providing a policy of whole farm 
     revenue insurance to a producer under this section, the 
     Secretary shall--
       ``(1) offer the policy through a reinsurance agreement with 
     a private insurance company;
       ``(2) ensure that the policy is actuarially sound;
       ``(3) require the producer to pay administrative fees and 
     premiums for the policy in accordance with subsections 
     (c)(10) and (d), respectively, of section 508; and
       ``(4) pay a portion of the premium for the policy in an 
     amount that does not exceed the amount authorized under 
     section 508(e)(2)(F).

[[Page S12972]]

       ``(g) Delivery Required.--Notwithstanding any other 
     provision of law, each insurance company that is reinsured 
     under the Standard Reinsurance Agreement shall offer a whole 
     farm revenue insurance policy described in this section.
       ``(h) Reinsurance Years.--This section shall apply to each 
     of the 2003 through 2006 reinsurance years.''.
       (b) Conforming Amendment.--Section 508(e)(2)(F) of the 
     Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)(F)) is 
     amended by inserting ``(including whole farm revenue 
     insurance)'' after ``not based on individual yield''.

     SEC. 1114. RISK MANAGEMENT STABILIZATION ACCOUNTS.

       (a) Definition of Account.--In this section, the term 
     ``Account'' means a Risk Management Stabilization Account 
     that is established in the name of a participating producer 
     in a bank or financial institution that is selected by the 
     producer and approved by the Secretary, consisting of--
       (1) contributions of the producer; and
       (2) matching contributions of the Secretary.
       (b) Establishment.--If a producer elects to use a voucher 
     in accordance with section 1112(d)(1)(B), the producer shall 
     establish an Account under which--
       (1) the producer shall provide monetary contributions to 
     the Account;
       (2) the Secretary shall provide a matching contribution to 
     the Account not to exceed an amount equal to the amount of 
     the voucher of the producer; and
       (3) the producer may withdraw accumulated funds from the 
     Account.
       (c) Deposits.--
       (1) Producer contribution.--A producer shall deposit an 
     amount that is at least equal to the amount of the voucher 
     determined under section 1112(b).
       (2) Matching contribution.--
       (A) In general.--Subject to subparagraph (C), the Secretary 
     shall provide a matching contribution that is equal to, and 
     may not exceed, the amount deposited by the producer into the 
     Account.
       (B) Value.--Before a voucher is deposited into an Account 
     under subparagraph (A), the voucher shall have no value 
     during the applicable year.
       (C) Contributions exceeding voucher.--The amount of any 
     producer contributions into the Account that exceed the 
     amount of the voucher shall not be eligible for matching 
     contributions.
       (3) Interest.--Funds deposited into the Account may earn 
     interest at the commercial rates provided by the bank or 
     financial institution in which the Account is established.
       (d) Maximum Account Balance.--The balance of an Account of 
     a producer may not exceed 150 percent of the average adjusted 
     gross revenue of the producer.
       (e) Use.--Funds credited to the Account--
       (1) shall be available for withdrawal by a producer, in 
     accordance with subsection (f); and
       (2) may be used for purposes determined by the producer.
       (f) Withdrawal.--
       (1) In general.--Subject to paragraphs (2) and (3), a 
     producer may withdraw funds from the Account if the estimated 
     net income for an applicable year from the agricultural 
     enterprises of the producer is less than the average adjusted 
     gross revenue of the producer.
       (2) Amount.--The amount of a withdrawal by a producer from 
     an Account may not exceed the difference between (as 
     determined by the Secretary)--
       (A) the average adjusted gross revenue of the producer; and
       (B) the estimated net income for the agricultural 
     enterprises of the producer for the year for which a 
     withdrawal occurs.
       (3) Retirement.--A producer that ceases to be actively 
     engaged in farming, as determined by the Secretary--
       (A) may withdraw the full balance from, and close, the 
     Account; and
       (B) may not establish another Account.
       (g) Administration.--The Secretary shall administer this 
     section through the Farm Service Agency and local and county 
     offices of the Department of Agriculture.
       (h) Commodity Credit Corporation.--The Secretary shall use 
     the funds, facilities, and authorities of the Commodity 
     Credit Corporation to carry out this section.

     SEC. 1115. RISK MANAGEMENT OPTIONS AVAILABLE IN MARKETPLACE.

       (a) Definition of Regulated Exchange.--The term ``regulated 
     exchange'' means a board of trade (as defined in section 1a 
     of the Commodity Exchange Act (7 U.S.C. 1a)) that is 
     designated as a contract market under section 2(a)(1)(C) of 
     that Act (7 U.S.C. 2a(a)(1)(C)).
       (b) Farm Price Protection.--If a producer elects to use a 
     voucher in accordance with section 1112(d)(1)(C), the 
     producer shall redeem the voucher for a cash payment and use 
     the payment to carry out 1 or more risk management strategies 
     for the farm described in subsection (c) during the 
     applicable year that are sufficient to guarantee a net income 
     from all agricultural enterprises of the producer for the 
     applicable year that is at least 80 percent of the average 
     adjusted gross revenue of the producer.
       (c) Risk Management Strategies.--A producer may use a cash 
     payment obtained under subsection (b) to purchase--
       (1) crop or revenue insurance available under the Federal 
     Crop Insurance Act (7 U.S.C. 1501 et seq.) (other than whole 
     farm revenue insurance under section 525 of that Act) or 
     private insurance (such as hail coverage);
       (2) a future or option on a regulated exchange, as 
     determined by the Secretary;
       (3) an agricultural trade option, purchased other than on a 
     regulated exchange, for an agricultural commodity produced by 
     the producer that is--
       (A) an equity option (as defined in section 1256(g) of the 
     Internal Revenue Code of 1986); or
       (B) a hedging transaction (as defined in section 1256(e)(2) 
     of that Code);
       (4) a cash forward or other marketing contract;
       (5) a trust that is authorized by Federal law for eligible 
     farming businesses that may be established to accept tax 
     deductible contributions; or
       (6) other type of farm price protection that is available 
     in the private sector and approved by the Secretary.

     SEC. 1116. CONFORMING AMENDMENTS.

       Section 506(m) of the Federal Crop Insurance Act (7 U.S.C. 
     1506(m)) is amended--
       (1) in paragraph (1), by striking ``participation in the 
     multiple peril crop insurance program'' and inserting ``a 
     covered person to participate in the multiple peril crop 
     insurance program (including whole farm revenue insurance 
     under section 525) or entering into a risk management 
     contract under section 1112 of the Farm Financial Protection 
     Act'';
       (2) by striking ``policyholder'' each place it appears and 
     inserting ``covered person''; and
       (3) in paragraph (2), by striking ``policyholders'' and 
     inserting ``covered persons''.

              Subtitle B--Phase Out of Commodity Programs

     SEC. 1121. PROHIBITION ON AGRICULTURAL PRICE SUPPORT AND 
                   PRODUCTION ADJUSTMENT.

       (a) In General.--Notwithstanding any other provision of 
     law, except as otherwise provided in this subtitle and 
     effective beginning with the 2003 crop or the 2003 marketing, 
     reinsurance, fiscal, or calendar year (as applicable) for 
     each agricultural commodity, the Secretary of Agriculture and 
     the Commodity Credit Corporation may not provide loans, 
     purchases, payments, or other operations or take any other 
     action to support the price, or adjust or control the 
     production, of an agricultural commodity by using the funds, 
     facilities, and authorities of the Commodity Credit 
     Corporation or under the authority of any law.
       (b) Exceptions.--Subsection (a) shall not apply to--
       (1) any activities under the Agricultural Adjustment Act (7 
     U.S.C. 601 et seq.), reenacted with amendments by the 
     Agricultural Marketing Act of 1937;
       (2) section 32 of the Act of August 24, 1935 (7 U.S.C. 
     612c; 49 Stat. 774, chapter 641);
       (3) part I of subtitle B of title III of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1311 et seq.); and
       (4) sections 106, 106A, and 106B of the Agricultural Act of 
     1949 (7 U.S.C. 1445, 1445-1, 1445-2).

     SEC. 1122. AGRICULTURAL MARKET TRANSITION ACT.

       (a) Repeals.--
       (1) 2003 and subsequent crops.--Effective beginning with 
     the 2003 crop, the Agricultural Market Transition Act (7 
     U.S.C. 7201 et seq.) is repealed, other than the following:
       (A) Subtitle A (7 U.S.C. 7201 et seq.).
       (B) Sections 131, 132, and 133 (7 U.S.C. 7231, 7232, 7233).
       (C) Subsections (a) through (d) of section 134 (7 U.S.C. 
     7234).
       (D) Section 135 (7 U.S.C. 7235).
       (E) Sections 141 and 142 (7 U.S.C. 7251, 7252).
       (F) Chapter 2 of subtitle D (7 U.S.C. 7271 et seq.).
       (G) Sections 161 through 165 (7 U.S.C. 7281 et seq.).
       (H) Subtitle H (7 U.S.C. 7331 et seq.).
       (2) 2003 and subsequent calendar years.--Effective January 
     1, 2003, sections 141 and 142 of the Agricultural Market 
     Transition Act (7 U.S.C. 7251, 7252) are repealed.
       (3) 2006 and subsequent crops.--Effective beginning with 
     the 2006 crop, the following provisions of the Agricultural 
     Market Transition Act (7 U.S.C. 7231 et seq.) are repealed:
       (A) Subtitle C (7 U.S.C. 7231 et seq.), other than sections 
     131 through 134.
       (B) Chapter 2 of subtitle D (7 U.S.C. 7271 et seq.), other 
     than section 156(f) (7 U.S.C. 7272(f)).
       (b) Availability of Nonrecourse Marketing Assistance 
     Loans.--Section 131 of the Agricultural Market Transition Act 
     (7 U.S.C. 7231) is amended --
       (1) in subsection (a) by striking ``2002'' and inserting 
     ``2006''; and
       (2) by striking subsection (b) and inserting the following:
       ``(b) Eligible Production.--The producers on a farm shall 
     be eligible for a marketing assistance loan under subsection 
     (a) for any quantity of a loan commodity produced on the 
     farm.''.
       (c) Loan Rates for Marketing Assistance Loans.--Section 132 
     of the Agricultural Market Transition Act (7 U.S.C. 7232) is 
     amended to read as follows:

     ``SEC. 132. LOAN RATES FOR MARKETING ASSISTANCE LOANS.

       ``(a) Wheat.--The loan rate for a marketing assistance loan 
     under section 131 for wheat shall be 90 percent for the 2003 
     crop, 85 percent for the 2004 crop, 80 percent for the 2005 
     crop, and 1 percent for the 2006 crop, of the simple average 
     price received by producers of wheat, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding 5 crops of wheat, excluding the year in which the 
     average price

[[Page S12973]]

     was the highest and the year in which the average price was 
     the lowest in the period.
       ``(b) Feed Grains.--
       ``(1) Corn.--The loan rate for a marketing assistance loan 
     under section 131 for corn shall be 90 percent for the 2003 
     crop, 85 percent for the 2004 crop, 80 percent for the 2005 
     crop, and 1 percent for the 2006 crop, of the simple average 
     price received by producers of corn, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding 5 crops of corn, excluding the year in which the 
     average price was the highest and the year in which the 
     average price was the lowest in the period.
       ``(2) Other feed grains.--The loan rate for a marketing 
     assistance loan under section 131 for grain sorghum, barley, 
     and oats, respectively, shall be established at such level as 
     the Secretary determines is fair and reasonable in relation 
     to the rate that loans are made available for corn, taking 
     into consideration the feeding value of the commodity in 
     relation to corn.
       ``(c) Upland Cotton.--The loan rate for a marketing 
     assistance loan under section 131 for upland cotton shall be 
     90 percent for the 2003 crop, 85 percent for the 2004 crop, 
     80 percent for the 2005 crop, and 1 percent for the 2006 
     crop, of the simple average price received by producers of 
     upland cotton, as determined by the Secretary, during the 
     marketing years for the immediately preceding 5 crops of 
     upland cotton, excluding the year in which the average price 
     was the highest and the year in which the average price was 
     the lowest in the period.
       ``(d) Extra Long Staple Cotton.--The loan rate for a 
     marketing assistance loan under section 131 for extra long 
     staple cotton shall be 90 percent for the 2003 crop, 85 
     percent for the 2004 crop, 80 percent for the 2005 crop, and 
     1 percent for the 2006 crop, of the simple average price 
     received by producers of extra long staple cotton, as 
     determined by the Secretary, during the marketing years for 
     the immediately preceding 5 crops of extra long staple 
     cotton, excluding the year in which the average price was the 
     highest and the year in which the average price was the 
     lowest in the period.
       ``(e) Rice.--The loan rate for a marketing assistance loan 
     under section 131 for rice shall be 90 percent for the 2003 
     crop, 85 percent for the 2004 crop, 80 percent for the 2005 
     crop, and 1 percent for the 2006 crop, of the simple average 
     price received by producers of rice, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding 5 crops of rice, excluding the year in which the 
     average price was the highest and the year in which the 
     average price was the lowest in the period.
       ``(f) Oilseeds.--
       ``(1) Soybeans.--The loan rate for a marketing assistance 
     loan under section 131 for soybeans shall be 90 percent for 
     the 2003 crop, 85 percent for the 2004 crop, 80 percent for 
     the 2005 crop, and 1 percent for the 2006 crop, of the simple 
     average price received by producers of soybeans, as 
     determined by the Secretary, during the marketing years for 
     the immediately preceding 5 crops of soybeans, excluding the 
     year in which the average price was the highest and the year 
     in which the average price was the lowest in the period.
       ``(2) Sunflower seed, canola, rapeseed, safflower, mustard 
     seed, and flaxseed.--The loan rate for a marketing assistance 
     loan under section 131 for sunflower seed, canola, rapeseed, 
     safflower, mustard seed, and flaxseed, individually, shall be 
     90 percent for the 2003 crop, 85 percent for the 2004 crop, 
     80 percent for the 2005 crop, and 1 percent for the 2006 
     crop, of the simple average price received by producers of 
     sunflower seed, individually, as determined by the Secretary, 
     during the marketing years for the immediately preceding 5 
     crops of sunflower seed, individually, excluding the year in 
     which the average price was the highest and the year in which 
     the average price was the lowest in the period.
       ``(3) Other oilseeds.--The loan rates for a marketing 
     assistance loan under section 131 for other oilseeds shall be 
     established at such level as the Secretary determines is fair 
     and reasonable in relation to the loan rate available for 
     soybeans, except in no event shall the rate for the oilseeds 
     (other than cottonseed) be less than the rate established for 
     soybeans on a per-pound basis for the same crop.''.
       (d) Peanut Program.--Section 155 of the Agricultural Market 
     Transition Act (7 U.S.C. 7271) is amended by striking 
     subsections (h) and (i) and inserting the following:
       ``(h) Phased Reduction of Loan Rate.--
       ``(1) In general.--For each of the 2003, 2004, and 2005 
     crops of quota and additional peanuts, the Secretary shall 
     lower the loan rate for each succeeding crop in a manner that 
     progressively and uniformly lowers the loan rate for quota 
     and additional peanuts to $0 for the 2006 crop.
       ``(2) Marketing association cooperatives.--The Secretary 
     shall allow the marketing association cooperatives to set up 
     type pools (specifically Valencia) for peanuts and, if loans 
     are available, they will be able to provide loan storage for 
     peanuts.
       ``(i) Crops.--This section shall be effective only for the 
     1996 through 2005 crops.''.
       (e) Sugar Program.--Section 156 of the Agricultural Market 
     Transition Act (7 U.S.C. 7272) is amended--
       (1) in subsection (e), by striking paragraph (1) and 
     inserting the following:
       ``(1) Loans.--The Secretary shall carry out this section 
     through the use of recourse loans.'';
       (2) in subsection (f), by striking ``2003'' each place it 
     appears and inserting ``2006'';
       (3) by redesignating subsection (i) as subsection (j);
       (4) by inserting after subsection (h) the following:
       ``(i) Phased Reduction of Loan Rate.--For each of the 2003, 
     2004, and 2005 crops of sugar beets and sugarcane, the 
     Secretary shall lower the loan rate for each succeeding 
     crop in a manner that progressively and uniformly lowers 
     the loan rate for sugar beets and sugarcane to $0 for the 
     2006 crop.''; and
       (5) in subsection (j) (as redesignated), by striking 
     ``2002'' and inserting ``2005''.
       (f) Conforming Amendment.--Section 1240M of the Food 
     Security Act of 1985 (16 U.S.C. 3839bb) is repealed.

     SEC. 1123. AGRICULTURAL ADJUSTMENT ACT OF 1938.

       (a) Repeals.--
       (1) 2003 and subsequent marketing years and crops.--
     Effective beginning with the 2003 marketing or crop year (as 
     applicable), the Agricultural Adjustment Act of 1938 (7 
     U.S.C. 1281 et seq.) is repealed, other than the following:
       (A) The first section (7 U.S.C. 1281).
       (B) Section 301 (7 U.S.C. 1301).
       (C) Part I of subtitle B of title III (7 U.S.C. 1311 et 
     seq.).
       (D) Part VI of subtitle B of title III (7 U.S.C. 1357 et 
     seq.).
       (E) Subtitle C of title III (7 U.S.C. 1361 et seq.).
       (F) Subtitle F of title III (7 U.S.C. 1381 et seq.).
       (G) Title V (7 U.S.C. 1501 et seq.).
       (2) 2006 and subsequent marketing years and crops.--
     Effective beginning with the 2006 marketing year or crop year 
     (as applicable), part VI of subtitle B of title III (7 U.S.C. 
     1357 et seq.) is repealed.
       (b) Peanut Quota.--
       (1) Extension.--Sections 358-1, 358b(c), 358c(d), and 
     358e(i) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
     1358-1, 1358b(c), 1358c(d), 1359a(i)) are amended by striking 
     ``2002'' each place it appears and inserting ``2005''.
       (2) Peanut quota.--Part VI of subtitle B of title III of 
     the Agricultural Adjustment Act of 1938 (7 U.S.C. 1357 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 358F. PHASED INCREASE IN QUOTA.

       ``For each of the 2003, 2004, and 2005 crops of quota 
     peanuts, the Secretary shall increase the marketing quota and 
     allotment for each succeeding marketing year in a manner that 
     progressively and uniformly increases the marketing quota to 
     anticipate the elimination of the marketing quota for the 
     2006 crop.''.
       (c) Conforming Amendments.--
       (1) References to parity prices.--Section 302 of the 
     Agricultural Act of 1948 (7 U.S.C. 1301a) is amended by 
     striking subsection (f).
       (2) Transfer of acreage allotments.--Section 706 of the 
     Food and Agriculture Act of 1965 (7 U.S.C. 1305) is repealed.
       (3) Projected yields.--Section 708 of the Food and 
     Agriculture Act of 1965 (7 U.S.C. 1306) is repealed.
       (4) Wheat diversion programs.--Section 327 of the Food and 
     Agriculture Act of 1962 (7 U.S.C. 1339b) is repealed.
       (5) Farm marketing quotas.--The Joint Resolution entitled 
     ``Joint Resolution relating to corn and wheat marketing 
     quotas under the Agricultural Adjustment Act of 1938, as 
     amended'', approved May 26, 1941 (7 U.S.C. 1330 and 1340), is 
     repealed.
       (6) Cotton acreage allotments.--The Act of March 29, 1949 
     (63 Stat. 17, chapter 38; 7 U.S.C. 1344a), is repealed.
       (7) Reconcentration of cotton.--The Act of June 16, 1938 
     (52 Stat. 762, chapter 480; 7 U.S.C. 1383a), is repealed.
       (8) Requirements for corn.--Section 308 of the Agricultural 
     Act of 1956 (7 U.S.C. 1442) is repealed.
       (9) Field measurement.--Section 1112 of the Omnibus Budget 
     Reconciliation Act of 1987 (101 Stat. 1330-8) is amended by 
     striking subsection (c).

     SEC. 1124. COMMODITY CREDIT CORPORATION CHARTER ACT.

       (a) In General.--Section 5 of the Commodity Credit 
     Corporation Charter Act (15 U.S.C. 714c) is amended--
       (1) by striking subsection (a); and
       (2) by redesignating subsections (b) through (g) as 
     subsections (a) through (f), respectively.
       (b) Conforming Amendment.--Section 619 of the Agricultural 
     Trade Development and Assistance Act of 1954 (7 U.S.C. 1738r) 
     is amended by striking ``section 5(f) of the Commodity Credit 
     Corporation Charter Act'' and inserting ``section 5(e) of the 
     Commodity Credit Corporation Charter Act (15 U.S.C. 
     714c(e))''.
       (c) Crops.--The amendments made by this section apply 
     beginning with the 2006 crop.

     SEC. 1125. AGRICULTURAL ACT OF 1949.

       (a) In General.--The Agricultural Act of 1949 (7 U.S.C. 
     1421 et seq.) is repealed, other than the following:
       (1) The first section (7 U.S.C. 1421 note).
       (2) Sections 106, 106A, and 106B (7 U.S.C. 1445, 1445-1, 
     1445-2).
       (3) Section 416 (7 U.S.C. 1431)
       (b) Conforming Amendments.--
       (1) Amount of assessments.--Section 4609 of the Omnibus 
     Trade and Competitiveness Act of 1988 (7 U.S.C. 624 note; 
     Public Law 100-418) is repealed.
       (2) American agriculture protection program.--Section 1002 
     of the Food and Agriculture Act of 1977 (7 U.S.C. 1310) is 
     repealed.

[[Page S12974]]

       (3) Advance recourse loans.--Section 13 of the Food 
     Security Improvements Act of 1986 (7 U.S.C. 1433c-1) is 
     repealed.
       (4) Conversion into fuels.--Section 2001 of the Food and 
     Agriculture Act of 1977 (7 U.S.C. 1435) is amended--
       (A) by striking subsection (a); and
       (B) in subsection (b)--
       (i) by striking the subsection designation;
       (ii) by redesignating paragraphs (1) through (4) as 
     subsections (a) through (d), respectively;
       (iii) in subsection (a) (as so redesignated), by striking 
     ``During'' and all that follows through ``1949, the'' and 
     inserting ``The''; and
       (iv) by striking ``subsection'' each place it appears and 
     inserting ``section''.
       (5) Reimbursement of ccc.--Section 412 of the Agricultural 
     Trade Development and Assistance Act of 1954 (7 U.S.C. 1736f) 
     is amended by striking subsection (d).
       (6) Honey assessments.--
       (A) Section 9 of the Honey Research, Promotion, and 
     Consumer Information Act (7 U.S.C. 4608) is amended--
       (i) by striking subsection (d);
       (ii) by redesignating subsections (e) through (i) as 
     subsections (d) through (h), respectively;
       (iii) in subsection (a), by striking ``(d), (e), and (i)'' 
     and inserting ``(d) and (h)'';
       (iv) in subsection (f) (as so redesignated), by striking 
     ``(f)'' and inserting ``(e)''; and
       (v) in subsection (g)(1) (as so redesignated)--

       (I) in subparagraph (A), by striking ``(A)''; and
       (II) by striking subparagraph (B).

       (B) Section 13(b)(2) of the Honey Research, Promotion, and 
     Consumer Information Act (7 U.S.C. 4612(b)(2)) is amended--
       (i) in subparagraph (A)(ii), by striking ``4608(h)(1)'' and 
     inserting ``4608(g)(1)''; and
       (ii) in subparagraph (B)(ii), by striking ``4608(h)(1)'' 
     and inserting ``4608(g)(1)''.
       (7) Essential agricultural use.--Section 273 of the Biomass 
     Energy and Alcohol Fuels Act of 1980 (15 U.S.C. 3391a) is 
     amended--
       (A) by adding ``and'' at the end of paragraph (1);
       (B) by striking paragraph (2); and
       (C) by redesignating paragraph (3) as paragraph (2).
       (8) Interest penalties.--Section 3902(h) of title 31, 
     United States Code, is amended--
       (A) by striking paragraph (2); and
       (B) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively.
       (9) Colorado river storage project.--Section 4 of the Act 
     of April 11, 1956 (70 Stat. 107, chapter 203; 43 U.S.C. 
     620c), is amended by striking ``, as defined in the 
     Agricultural Act of 1949, or any amendment thereof,''.
       (10) Surplus crops.--Section 212 of the Reclamation 
     Projects Authorization and Adjustment Act of 1992 (Public Law 
     102-575; 106 Stat. 4625) is repealed.

     SEC. 1126. AGRICULTURAL ADJUSTMENT ACT.

       Effective January 1, 2003, section 8c(5) of the 
     Agricultural Adjustment Act (7 U.S.C. 608c(5)), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937, is amended by adding at the end the following:
       ``(M) Milk Classes.--
       ``(i) In general.--Notwithstanding any other provision of 
     this subsection, the Secretary shall establish--

       ``(I) 1 class of milk for fluid milk; and
       ``(II) 1 class of milk for other uses of milk.

       ``(ii) Component prices.--The classes of milk established 
     under clause (i) shall be used to determine the prices of 
     milk components.''.

     SEC. 1127. AGRICULTURAL ACT OF 1970.

       Section 813 of the Agricultural Act of 1970 (7 U.S.C. 
     1427a) is repealed.

     SEC. 1128. GENERAL COMMODITY PROVISIONS.

       (a) Payment Limitations.--Section 1001 of the Food Security 
     Act of 1985 (7 U.S.C. 1308) is amended by striking paragraph 
     (1) and inserting the following:
       ``(1) Limitation on vouchers and payments.--
       ``(A) Vouchers.--The total amount of vouchers made under 
     section 1112 of the Farm Financial Protection Act made 
     directly or indirectly to an individual or entity during any 
     applicable year may not exceed $30,000.
       ``(B) Environmental quality incentives program.--The total 
     amount of payments made under chapter 4 of subtitle D of 
     title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa 
     et seq.) made directly or indirectly to an individual or 
     entity during any applicable year may not exceed $50,000.
       ``(C) Administration.--Notwithstanding any other paragraph 
     of this section, sections 1001A(b), 1001B, and 1001C shall 
     apply to an individual or entity that receives a voucher or 
     payment described in this paragraph.''.
       (b) Normally Planted Acreage.--Section 1001 of the Food and 
     Agriculture Act of 1977 (7 U.S.C. 1309) is repealed.
       (c) Normal Supply.--Section 1019 of the Food Security Act 
     of 1985 (7 U.S.C. 1310a) is repealed.
       (d) Determinations of the Secretary.--Section 1017 of the 
     Food Security Act of 1985 (7 U.S.C. 1385 note; Public Law 99-
     198) is repealed.
       (e) Financial Impact Study.--Section 1147 of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     1421a) is repealed.
       (f) Planting on Set-Aside Acreage.--Section 814 of the 
     Agricultural Act of 1970 (7 U.S.C. 1434) is repealed.
       (g) Cost of Production Study.--Section 808 of the 
     Agricultural Act of 1970 (7 U.S.C. 1441a) is repealed.
       (h) Storage Payments.--Section 1124 of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     1445e note; Public Law 101-624) is repealed.
       (i) Computation of Carryover.--Section 105 of the 
     Agricultural Act of 1954 (7 U.S.C. 1745) is repealed.
       (j) Adjustment of Loans.--Section 2(b) of the Act of 
     December 20, 1944 (12 U.S.C. 1150a(b)), is amended--
       (1) by striking ``Agricultural Adjustment Act (of 1933);''; 
     and
       (2) by striking ``sections 303'' and all that follows 
     through ``adjustment payments;''.
       (k) Targeted Option Payments.--Section 121 of the Food, 
     Agriculture, Conservation, and Trade Act Amendments of 1991 
     (105 Stat. 1843) is repealed.

     SEC. 1129. SPECIFIC COMMODITY PROVISIONS.

       (a) Milk.--Section 101 of the Agriculture and Food Act of 
     1981 (7 U.S.C. 608c note; Public Law 97-98) is amended by 
     striking subsection (b).
       (b) Feed Grains.--
       (1) Recourse loan program for silage.--Section 403 of the 
     Food Security Act of 1985 (7 U.S.C. 1444e-1) is repealed.
       (2) Calculation of refunds.--Section 405 of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     1445j note; Public Law 101-624) is repealed.
       (3) Acreage diversion programs.--Section 328 of the Food 
     and Agriculture Act of 1962 (7 U.S.C. 1339c) is repealed.

     SEC. 1130. EFFECT OF AMENDMENTS.

       (a) In General.--Except as otherwise specifically provided 
     in this title and notwithstanding any other provision of law, 
     this subtitle and the amendments made by this subtitle shall 
     not affect the authority of the Secretary of Agriculture to 
     carry out an agricultural market transition, price support, 
     or production adjustment program for any of the 1996 through 
     2002 crops, or for any of the 1996 through 2002 marketing, 
     reinsurance, fiscal, or calendar years, as applicable, under 
     a provision of law in effect immediately before the enactment 
     of this subtitle.
       (b) Liability.--A provision of this title or an amendment 
     made by this subtitle shall not affect the liability of any 
     person under any provision of law as in effect immediately 
     before of enactment of this subtitle.

     SEC. 1131. CROP.

       This subtitle and the amendments made by this subtitle 
     apply beginning with the 2003 crop of each agricultural 
     commodity or the 2003 marketing, reinsurance, fiscal, or 
     calendar year, as applicable.

     SEC. 1132. EFFECTIVENESS OF OTHER COMMODITY TITLE.

       Title I and the amendments made by title I shall have no 
     effect.

                     TITLE XII--NUTRITION PROGRAMS

     SEC. 1201. SHORT TITLE.

       This title may be cited as the ``Food Stamp Simplification 
     Act of 2001''.

                     Subtitle A--Food Stamp Program

     SEC. 1211. CATEGORICAL ELIGIBILITY FOR RECIPIENTS OF CASH 
                   ASSISTANCE.

       Section 5(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(a)) is amended--
       (1) in the second sentence, by striking ``receives 
     benefits'' and inserting ``receives cash assistance''; and
       (2) in the third sentence, by striking ``receives 
     benefits'' and inserting ``receives cash assistance''.

     SEC. 1212. DISREGARDING OF INFREQUENT AND UNANTICIPATED 
                   INCOME.

       Section 5(d)(2) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(d)(2)) is amended by striking ``$30'' and inserting 
     ``$100''.

     SEC. 1213. SIMPLIFIED TREATMENT OF INDIVIDUALS COMPLYING WITH 
                   CHILD SUPPORT ORDERS.

       (a) Exclusion.--Section 5(d)(6) of the Food Stamp Act of 
     1977 (7 U.S.C. 2014(d)(6)) is amended by adding at the end 
     the following: ``including child support payments made by a 
     household member to or for an individual who is not a member 
     of the household if the household member is legally obligated 
     to make the payments,''.
       (b) Simplified Procedure.--Section 5 of the Food Stamp Act 
     of 1977 (7 U.S.C. 2014) is amended--
       (1) in subsection (e), by striking paragraph (4) and 
     inserting the following:
       ``(4) Deduction for child support payments.--
       ``(A) In general.--In lieu of providing an exclusion for 
     legally obligated child support payments made by a household 
     member under subsection (d)(6), a State agency may elect to 
     provide a deduction for the amount of the payments.
       ``(B) Order of determining deductions.--A deduction under 
     this paragraph shall be determined before the computation of 
     the excess shelter expense deduction under paragraph (6).''; 
     and
       (2) by adding at the end the following:
       ``(n) State Options To Simplify Determination of Child 
     Support Payments Made by Household Members.--
       ``(1) In general.--Regardless of whether a State agency 
     elects to provide a deduction under subsection (e)(4), the 
     Secretary shall establish simplified procedures to allow 
     State agencies to determine the amount of the legally 
     obligated child support payments made, including procedures 
     to allow the State agency to rely on information from the 
     agency responsible for implementing the program under part D 
     of title IV of the Social Security Act (42 U.S.C. 661 et 
     seq.) concerning payments made in prior months in lieu of 
     obtaining current information from the household.

[[Page S12975]]

       ``(2) Duration of determination of amount of support 
     payments.--If a State agency makes a determination of the 
     amount of support payments of a household under paragraph 
     (1), the State agency may provide that the amount of the 
     exclusion or deduction for the household shall not change 
     until the eligibility of the household is next redetermined 
     under section 11(e)(4).''.

     SEC. 1214. COORDINATED AND SIMPLIFIED DEFINITION OF INCOME.

       Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(d)) is amended--
       (1) by striking ``and (15)'' and inserting ``(15)''; and
       (2) by inserting before the period at the end the 
     following: ``, (16) at the option of the State agency, any 
     educational loans on which payment is deferred, grants, 
     scholarships, fellowships, veterans' educational benefits, 
     and the like (other than loans, grants, scholarships, 
     fellowships, veterans' educational benefits, and the like 
     excluded under paragraph (3)), to the extent that they are 
     required to be excluded under title XIX of the Social 
     Security Act (42 U.S.C. 1396 et seq.), (17) at the option of 
     the State agency, any State complementary assistance program 
     payments that are excluded for the purpose of determining 
     eligibility for medical assistance under section 1931 of the 
     Social Security Act (42 U.S.C. 1396u-1), (18) at the option 
     of the State agency, any types of income that the State 
     agency does not consider when determining eligibility for, or 
     the amount of, cash assistance under a program funded under 
     part A of title IV of the Social Security Act (42 U.S.C. 601 
     et seq.) or medical assistance under section 1931 of the 
     Social Security Act (42 U.S.C. 1396u-1), except that this 
     paragraph does not authorize a State agency to exclude wages 
     or salaries, benefits under title I, II, IV, X, XIV, or XVI 
     of the Social Security Act (42 U.S.C. 1381 et seq.), regular 
     payments from a government source (such as unemployment 
     benefits and general assistance), worker's compensation, 
     child support payments made to a household member by an 
     individual who is legally obligated to make the payments, or 
     such other types of income the consideration of which the 
     Secretary determines by regulation to be essential to 
     equitable determinations of eligibility and benefit levels''.

     SEC. 1215. EXCLUSION OF INTEREST AND DIVIDEND INCOME.

       Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(d)) (as amended by section 1214(2)) is amended by 
     inserting before the period at the end the following: ``, and 
     (19) any interest or dividend income received by a member of 
     the household''.

     SEC. 1216. ALIGNMENT OF STANDARD DEDUCTION WITH POVERTY LINE.

       Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(e)) is amended by striking paragraph (1) and inserting 
     the following:
       ``(1) Standard deduction.--
       ``(A) In general.--Subject to the other provisions of this 
     paragraph, the Secretary shall allow a standard deduction for 
     each household that is--
       ``(i) equal to the applicable percentage specified in 
     subparagraph (D) of the income standard of eligibility 
     established under subsection (c)(1); but
       ``(ii) not less than the minimum deduction specified in 
     subparagraph (E).
       ``(B) Guam.--The Secretary shall allow a standard deduction 
     for each household in Guam that is--
       ``(i) equal to the applicable percentage specified in 
     subparagraph (D) of twice the income standard of eligibility 
     established under subsection (c)(1) for the 48 contiguous 
     States and the District of Columbia; but
       ``(ii) not less than the minimum deduction for Guam 
     specified in subparagraph (E).
       ``(C) Households of 6 or more members.--The income standard 
     of eligibility established under subsection (c)(1) for a 
     household of 6 members shall be used to calculate the 
     standard deduction for each household of 6 or more members.
       ``(D) Applicable percentage.--For the purpose of 
     subparagraph (A), the applicable percentage shall be--
       ``(i) 8 percent for fiscal year 2002;
       ``(ii) 8.5 percent for each of fiscal years 2003 through 
     2005;
       ``(iii) 9 percent for each of fiscal years 2006 through 
     2008;
       ``(iv) 9.5 percent for each of fiscal years 2009 and 2010; 
     and
       ``(v) 10 percent for each fiscal year thereafter.
       ``(E) Minimum deduction.--The minimum deduction shall be 
     $134, $229, $189, $269, and $118 for the 48 contiguous States 
     and the District of Columbia, Alaska, Hawaii, Guam, and the 
     Virgin Islands of the United States, respectively.''.

     SEC. 1217. SIMPLIFIED DEPENDENT CARE DEDUCTION.

       Section 5(e)(3) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(e)(3)) is amended by adding at the end the following:
       ``(C) Standard dependent care allowances.--
       ``(i) Establishment of allowances.--

       ``(I) In general.--In determining the dependent care 
     deduction under this paragraph, in lieu of requiring the 
     household to establish the actual dependent care costs of the 
     household, a State agency may use standard dependent care 
     allowances established under subclause (II) for each 
     dependent for whom the household incurs costs for care.
       ``(II) Amendment to state plan.--A State agency that elects 
     to use standard dependent care allowances under subclause (I) 
     shall submit for approval by the Secretary an amendment to 
     the State plan of operation under section 11(d) that--

       ``(aa) describes the allowances that the State agency will 
     use; and
       ``(bb) includes supporting documentation.
       ``(ii) Household election.--

       ``(I) In general.--Except as provided in clause (iii), a 
     household may elect to have the dependent care deduction of 
     the household based on actual dependent care costs rather 
     that the allowances established under clause (i).
       ``(II) Frequency.--The Secretary may by regulation limit 
     the frequency with which households may make the election 
     described in subclause (I) or reverse the election.

       ``(iii) Mandatory dependent care allowances.--The State 
     agency may make the use of standard dependent care allowances 
     established under clause (i) mandatory for all households 
     that incur dependent care costs.''.

     SEC. 1218. SIMPLIFIED DETERMINATION OF HOUSING COSTS.

       (a) In General.--Section 5(e)(7) of the Food Stamp Act of 
     1977 (7 U.S.C. 2014(e)(7)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``A household'' and inserting the 
     following:
       ``(i) In general.--A household''; and
       (B) by adding at the end the following:
       ``(ii) Inclusion of certain payments.--In determining the 
     shelter expenses of a household under this paragraph, the 
     State agency shall include any required payment to the 
     landlord of the household without regard to whether the 
     required payment is designated to pay specific charges.''; 
     and
       (2) by adding at the end the following:
       ``(D) Homeless households.--
       ``(i) Alternative deduction.--In lieu of the deduction 
     provided under subparagraph (A), a State agency may elect to 
     allow a household in which all members are homeless 
     individuals, but that is not receiving free shelter 
     throughout the month, to receive a deduction of $143 per 
     month.
       ``(ii) Ineligibility.--The State agency may make a 
     household with extremely low shelter costs ineligible for the 
     alternative deduction under clause (i).''.
       (b) Conforming Amendments.--Section 5 of the Food Stamp Act 
     of 1977 (7 U.S.C. 2014) is amended--
       (1) in subsection (e)--
       (A) by striking paragraph (5); and
       (B) by redesignating paragraphs (6) and (7) as paragraphs 
     (5) and (6), respectively; and
       (2) in subsection (k)(4)(B), by striking ``subsection 
     (e)(7)'' and inserting ``subsection (e)(6)''.

     SEC. 1219. SIMPLIFIED DETERMINATION OF UTILITY COSTS.

       Section 5(e)(6)(C)(iii) of the Food Stamp Act of 1977 (as 
     amended by section 1218(b)(1)(B)) is amended--
       (1) in subclause (I)(bb), by inserting ``(without regard to 
     subclause (III))'' after ``Secretary finds''; and
       (2) by adding at the end the following:

       ``(III) Inapplicability of certain restrictions.--Clauses 
     (ii)(II) and (ii)(III) shall not apply in the case of a State 
     agency that has made the use of a standard utility allowance 
     mandatory under subclause (I).''.

     SEC. 1220. SIMPLIFIED DETERMINATION OF EARNED INCOME.

       Section 5(f)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(f)(1)) is amended by adding at the end the following:
       ``(C) Simplified determination of earned income.--
       ``(i) In general.--A State agency may elect to determine 
     monthly earned income by multiplying weekly income by 4 and 
     biweekly income by 2.
       ``(ii) Adjustment of earned income deduction.--A State 
     agency that makes an election described in clause (i) shall 
     adjust the earned income deduction under subsection (e)(2)(B) 
     to the extent necessary to prevent the election from 
     resulting in increased costs to the food stamp program, as 
     determined consistent with standards promulgated by the 
     Secretary.''.

     SEC. 1221. SIMPLIFIED DETERMINATION OF DEDUCTIONS.

       Section 5(f)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(f)(1)) (as amended by section 1220) is amended by adding 
     at the end the following:
       ``(D) Simplified determination of deductions.--
       ``(i) In general.--Except as provided in clause (ii), for 
     the purposes of subsection (e), a State agency may elect to 
     disregard until the next redetermination of eligibility under 
     section 11(e)(4) 1 or more types of changes in the 
     circumstances of a household that affect the amount of 
     deductions the household may claim under subsection (e).
       ``(ii) Changes that may not be disregarded.--Under clause 
     (i), a State agency may not disregard--

       ``(I) any reported change of residence; or
       ``(II) under standards prescribed by the Secretary, any 
     change in earned income.''.

     SEC. 1222. SIMPLIFIED RESOURCE ELIGIBILITY LIMIT.

       Section 5(g)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(g)(1)) is amended by striking ``a member who is 60 years 
     of age or older'' and inserting ``an elderly or disabled 
     member''.

     SEC. 1223. EXCLUSION OF LICENSED VEHICLES FROM FINANCIAL 
                   RESOURCES.

       (a) In General.--Section 5(g)(2) of the Food Stamp Act of 
     1977 (7 U.S.C. 2014(g)(2)) is amended--

[[Page S12976]]

       (1) in subparagraph (B)--
       (A) in clause (iii), by adding ``and'' at the end;
       (B) by striking clause (iv); and
       (C) by redesignating clause (v) as clause (iv);
       (2) by striking subparagraph (C) and inserting the 
     following:
       ``(C) Excluded vehicles.--The Secretary shall exclude from 
     financial resources any licensed vehicle used for household 
     transportation.''; and
       (3) by striking subparagraph (D).
       (b) Conforming Amendment.--Section 17 of the Food Stamp Act 
     of 1977 (7 U.S.C. 2026) is amended by striking subsection 
     (h).

     SEC. 1224. EXCLUSION OF RETIREMENT ACCOUNTS FROM FINANCIAL 
                   RESOURCES.

       Section 5(g)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(g)(2)(B)) (as amended by section 1223(a)(1)) is amended 
     by striking clause (iv) and inserting the following:
       ``(iv) any savings account (other than a retirement account 
     (including an individual account)).''.

     SEC. 1225. COORDINATED AND SIMPLIFIED DEFINITION OF 
                   RESOURCES.

       Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(g)) is amended by adding at the end the following:
       ``(6) Exclusion of types of financial resources not 
     considered under certain other federal programs.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall promulgate regulations under which a State 
     agency may, at the option of the State agency, exclude from 
     financial resources under this subsection any types of 
     financial resources that the State agency does not consider 
     when determining eligibility for--
       ``(i) cash assistance under a program funded under part A 
     of title IV of the Social Security Act (42 U.S.C. 601 et 
     seq.); or
       ``(ii) medical assistance under section 1931 of the Social 
     Security Act (42 U.S.C. 1396u-1).
       ``(B) Limitations.--Subparagraph (A) does not authorize a 
     State agency to exclude--
       ``(i) cash;
       ``(ii) amounts in any account in a financial institution 
     that are readily available to the household; or
       ``(iii) any other similar type of resource the inclusion in 
     financial resources of which the Secretary determines by 
     regulation to be essential to equitable determinations of 
     eligibility under the food stamp program, except to the 
     extent that any of those types of resources are excluded 
     under another paragraph of this subsection.''.

     SEC. 1226. ALTERNATIVE ISSUANCE SYSTEMS IN DISASTERS.

       Section 5(h)(3)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(h)(3)(B)) is amended--
       (1) in the first sentence, by inserting ``issuance methods 
     and'' after ``shall adjust''; and
       (2) in the second sentence, by inserting ``, any conditions 
     that make reliance on electronic benefit transfer systems 
     described in section 7(i) impracticable,'' after 
     ``personnel''.

     SEC. 1227. SIMPLIFIED REPORTING SYSTEMS.

       Section 6(c)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(c)(1)) is amended--
       (1) in subparagraph (B), by striking ``on a monthly 
     basis''; and
       (2) by adding at the end the following:
       ``(D) Frequency of reporting.--
       ``(i) In general.--Except as provided in subparagraphs (A) 
     and (C), a State agency may require households that report on 
     a periodic basis to submit reports--

       ``(I) not less often than once each 6 months; but
       ``(II) not more often than once each month.

       ``(ii) Reporting by households with excess income.--A 
     household required to report less often than once each 3 
     months shall, notwithstanding subparagraph (B), report in a 
     manner prescribed by the Secretary if the income of the 
     household for any month exceeds the standard established 
     under section 5(c)(2).''.

     SEC. 1228. SIMPLIFIED TIME LIMIT.

       (a) In General.--Section 6(o) of the Food Stamp Act of 1977 
     (7 U.S.C. 2015(o)) is amended--
       (1) in paragraph (2)--
       (A) by striking ``36-month'' and inserting ``12-month'';
       (B) by striking ``3'' and inserting ``6''; and
       (C) in subparagraph (D), by striking ``(4), (5), or (6)'' 
     and inserting ``(4), or (5)'';
       (2) by striking paragraph (5);
       (3) in paragraph (6)(A)(ii)--
       (A) in subclause (III), by adding ``and'' at the end;
       (B) in subclause (IV), by striking ``; and'' and inserting 
     a period; and
       (C) by striking subclause (V); and
       (4) by redesignating paragraphs (6) and (7) as paragraphs 
     (5) and (6), respectively.
       (b) Implementation of Amendments.--For the purpose of 
     implementing the amendments made by subsection (a), a State 
     agency shall disregard any period during which an individual 
     received food stamp benefits before the effective date of 
     this title.

     SEC. 1229. PRESERVATION OF ACCESS TO ELECTRONIC BENEFITS.

       (a) In General.--Section 7(i)(1) of the Food Stamp Act of 
     1977 (7 U.S.C. 2016(i)(1)) is amended by adding at the end 
     the following:
       ``(E) Access to electronic benefit transfer systems.--
       ``(i) In general.--No benefits shall be taken off-line or 
     otherwise made inaccessible because of inactivity until at 
     least 180 days have elapsed since a household last accessed 
     the account of the household.
       ``(ii) Notice to household.--In a case in which benefits 
     are taken off-line or otherwise made inaccessible, the 
     household shall be sent a notice that--

       ``(I) explains how to reactivate the benefits; and
       ``(II) offers assistance if the household is having 
     difficulty accessing the benefits of the household.''.

       (b) Applicability.--The amendment made by subsection (a) 
     shall apply with respect to each State agency beginning on 
     the date on which the State agency, after the date of 
     enactment of this Act, enters into a contract to operate an 
     electronic benefit transfer system.

     SEC. 1230. COST-NEUTRALITY FOR ELECTRONIC BENEFIT TRANSFER 
                   SYSTEMS.

       Section 7(i)(2) of the Food Stamp Act of 1977 (7 U.S.C. 
     2016(i)(2)) is amended--
       (1) by striking subparagraph (A); and
       (2) by redesignating subparagraphs (B) through (I) as 
     subparagraphs (A) through (H), respectively.

     SEC. 1231. SIMPLIFIED PROCEDURES FOR RESIDENTS OF CERTAIN 
                   GROUP FACILITIES.

       (a) In General.--Section 8 of the Food Stamp Act of 1977 (7 
     U.S.C. 2017) is amended by adding at the end the following:
       ``(f) Simplified Procedures for Residents of Certain Group 
     Facilities.--
       ``(1) In general.--At the option of the State agency, 
     allotments for residents of facilities described in 
     subparagraph (B), (C), (D), or (E) of section 3(i)(5) may be 
     determined and issued under this subsection in lieu of 
     subsection (a).
       ``(2) Amount of allotment.--The allotment for each eligible 
     resident described in paragraph (1) shall be calculated in 
     accordance with standardized procedures established by the 
     Secretary that take into account the allotments typically 
     received by residents of facilities described in paragraph 
     (1).
       ``(3) Issuance of allotment.--
       ``(A) In general.--The State agency shall issue an 
     allotment determined under this subsection to the 
     administration of a facility described in paragraph (1) as 
     the authorized representative of the residents of the 
     facility.
       ``(B) Adjustment.--The Secretary shall establish procedures 
     to ensure that a facility described in paragraph (1) does not 
     receive a greater proportion of a resident's monthly 
     allotment than the proportion of the month during which the 
     resident lived in the facility.
       ``(4) Departures of covered residents.--
       ``(A) Notification.--Any facility described in paragraph 
     (1) that receives an allotment for a resident under this 
     subsection shall--
       ``(i) notify the State agency promptly on the departure of 
     the resident; and
       ``(ii) notify the resident, before the departure of the 
     resident, that the resident--

       ``(I) is eligible for continued benefits under the food 
     stamp program; and
       ``(II) should contact the State agency concerning 
     continuation of the benefits.

       ``(B) Issuance to departed residents.--On receiving a 
     notification under subparagraph (A)(i) concerning the 
     departure of a resident, the State agency--
       ``(i) shall promptly issue the departed resident an 
     allotment for the days of the month after the departure of 
     the resident (calculated in a manner prescribed by the 
     Secretary) unless the departed resident reapplies to 
     participate in the food stamp program; and
       ``(ii) may issue an allotment for the month following the 
     month of the departure (but not any subsequent month) based 
     on this subsection unless the departed resident reapplies to 
     participate in the food stamp program.
       ``(C) State option.--The State agency may elect not to 
     issue an allotment under subparagraph (B)(i) if the State 
     agency lacks sufficient information on the location of the 
     departed resident to provide the allotment.
       ``(D) Effect of reapplication.--If the departed resident 
     reapplies to participate in the food stamp program, the 
     allotment of the departed resident shall be determined 
     without regard to this subsection.''.
       (b) Conforming Amendments.--
       (1) Section 3(i) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(i)) is amended--
       (A) by striking ``(i) `Household' means (1) an'' and 
     inserting the following:
       ``(i)(1) `Household' means--
       ``(A) an'';
       (B) in the first sentence, by striking ``others, or (2) a 
     group'' and inserting the following: ``others; or
       ``(B) a group'';
       (C) in the second sentence, by striking ``Spouses'' and 
     inserting the following:
       ``(2) Spouses'';
       (D) in the third sentence, by striking ``Notwithstanding'' 
     and inserting the following:
       ``(3) Notwithstanding'';
       (E) in paragraph (3) (as designated by subparagraph (D)), 
     by striking ``the preceding sentences'' and inserting 
     ``paragraphs (1) and (2)'';
       (F) in the fourth sentence, by striking ``In no event'' and 
     inserting the following:
       ``(4) In no event'';
       (G) in the fifth sentence, by striking ``For the purposes 
     of this subsection, residents'' and inserting the following:
       ``(5) For the purposes of this subsection, the following 
     persons shall not be considered to be residents of 
     institutions and shall be considered to be individual 
     households:

[[Page S12977]]

       ``(A) Residents''; and
       (H) in paragraph (5) (as designated by subparagraph (G))--
       (i) by striking ``Act, or are individuals'' and inserting 
     the following: ``Act.
       ``(B) Individuals'';
       (ii) by striking ``such section, temporary'' and inserting 
     the following: ``that section.
       ``(C) Temporary'';
       (iii) by striking ``children, residents'' and inserting the 
     following: ``children.
       ``(D) Residents'';
       (iv) by striking ``coupons, and narcotics'' and inserting 
     the following: ``coupons.
       ``(E) Narcotics''; and
       (v) by striking ``shall not'' and all that follows and 
     inserting a period.
       (2) Section 5(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(a)) is amended by striking ``the third sentence of 
     section 3(i)'' each place it appears and inserting ``section 
     3(i)(4)''.
       (3) Section 8(e)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2017(e)(1)) is amended by striking ``the last sentence of 
     section 3(i)'' and inserting ``section 3(i)(5)''.
       (4) Section 17(b)(1)(B)(iv)(III)(aa) of the Food Stamp Act 
     of 1977 (7 U.S.C. 2026(b)(1)(B)(iv)(III)(aa)) is amended by 
     striking ``the last 2 sentences of section 3(i)'' and 
     inserting ``paragraphs (4) and (5) of section 3(i)''.

     SEC. 1232. REDEMPTION OF BENEFITS THROUGH GROUP LIVING 
                   ARRANGEMENTS.

       Section 10 of the Food Stamp Act of 1977 (7 U.S.C. 2019) is 
     amended by inserting after the first sentence the following: 
     ``Notwithstanding the preceding sentence, a center, 
     organization, institution, shelter, group living arrangement, 
     or establishment described in that sentence may be authorized 
     to redeem coupons through a financial institution described 
     in that sentence if the center, organization, institution, 
     shelter, group living arrangement, or establishment is 
     equipped with 1 or more point-of-sale devices and is 
     operating in an area in which an electronic benefit transfer 
     system described in section 7(i) has been implemented.''.

     SEC. 1233. SIMPLIFIED DETERMINATIONS OF CONTINUING 
                   ELIGIBILITY.

       (a) In General.--Section 11(e) of the Food Stamp Act of 
     1977 (7 U.S.C. 2020(e)) is amended--
       (1) by striking paragraph (4) and inserting the following:
       ``(4)(A) that the State agency shall periodically require 
     each household to cooperate in a redetermination of the 
     eligibility of the household.
       ``(B) A redetermination under subparagraph (A) shall--
       ``(i) be based on information supplied by the household; 
     and
       ``(ii) conform to standards established by the Secretary.
       ``(C) The interval between redeterminations of eligibility 
     under subparagraph (A) shall not exceed the eligibility 
     review period;'' and
       (2) in paragraph (10)--
       (A) by striking ``within the household's certification 
     period''; and
       (B) by striking ``or until'' and all that follows through 
     ``occurs earlier''.
       (b) Conforming Amendments.--
       (1) Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(c)) is amended--
       (A) by striking ``Certification period'' and inserting 
     ``Eligibility review period''; and
       (B) by striking ``certification period'' each place it 
     appears and inserting ``eligibility review period''.
       (2) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) 
     is amended--
       (A) in subsection (d)(2), by striking ``in the 
     certification period which'' and inserting ``that''; and
       (B) in subsection (e) (as amended by section 
     1218(b)(1)(B))--
       (i) in paragraph (5)(B)(ii)--

       (I) in subclause (II), by striking ``certification period'' 
     and inserting ``eligibility review period''; and
       (II) in subclause (III), by striking ``has been anticipated 
     for the certification period'' and inserting ``was 
     anticipated when the household applied or at the most recent 
     redetermination of eligibility for the household''; and

       (ii) in paragraph (6)(C)(iii)(II), by striking ``the end of 
     a certification period'' and inserting ``each redetermination 
     of the eligibility of the household''.
       (3) Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) 
     is amended--
       (A) in subsection (c)(1)(C)(iv), by striking 
     ``certification period'' each place it appears and inserting 
     ``interval between required redeterminations of 
     eligibility''; and
       (B) in subsection (d)(1)(D)(v)(II), by striking ``a 
     certification period'' and inserting ``an eligibility review 
     period''.
       (4) Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2017(c)) is amended--
       (A) in the second sentence of paragraph (1), by striking 
     ``within a certification period''; and
       (B) in paragraph (2)(B), by striking ``expiration of'' and 
     all that follows through ``during a certification period,'' 
     and inserting ``termination of benefits to the household,''.
       (5) Section 11(e)(16) of the Food Stamp Act of 1977 (7 
     U.S.C. 2020(e)(16)) is amended by striking ``the 
     certification or recertification'' and inserting 
     ``determining the eligibility''.

     SEC. 1234. SIMPLIFIED APPLICATION PROCEDURES FOR THE ELDERLY 
                   AND DISABLED.

       (a) In General.--Section 11(i) of the Food Stamp Act of 
     1977 (7 U.S.C. 2020(i)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``income shall be informed'' and inserting 
     the following: ``income shall be--
       ``(A) informed'';
       (B) by striking ``program and be assisted'' and inserting 
     the following: ``program;
       ``(B) assisted''; and
       (C) by striking ``office and be certified'' and inserting 
     the following: ``office; and
       ``(C) certified''; and
       (2) by adding at the end the following:
       ``(3) Dual-purpose applications.--
       ``(A) In general.--Under regulations promulgated by the 
     Secretary after consultation with the Commissioner of Social 
     Security, a State agency may enter into a memorandum of 
     understanding with the Commissioner under which an 
     application for supplemental security income benefits under 
     title XVI of the Social Security Act (42 U.S.C. 1381 et seq.) 
     from a household composed entirely of applicants for or 
     recipients of those benefits shall also be considered to be 
     an application for benefits under the food stamp program.
       ``(B) Certification; reporting requirements.--A household 
     covered by a memorandum of understanding under subparagraph 
     (A)--
       ``(i) shall be certified based exclusively on information 
     provided to the Commissioner, including such information as 
     the Secretary shall require to be collected under the terms 
     of any memorandum of understanding under this paragraph; and
       ``(ii) shall not be subject to any reporting requirement 
     under section 6(c).
       ``(C) Exceptions to value of allotment.--The Secretary 
     shall provide by regulation for such exceptions to section 
     8(a) as are necessary because a household covered by a 
     memorandum of understanding under subparagraph (A) did not 
     complete an application under subsection (e)(2).
       ``(D) Coverage.--In accordance with standards promulgated 
     by the Secretary, a memorandum of understanding under 
     subparagraph (A) need not cover all classes of applicants and 
     recipients referred to in subparagraph (A).
       ``(E) Exemption from certain application procedures.--In 
     the case of any member of a household covered by a memorandum 
     of understanding under subparagraph (A), the Commissioner 
     shall not be required to comply with--
       ``(i) subparagraph (B) or (C) of paragraph (1); or
       ``(ii) subsection (j)(1)(B).
       ``(F) Right to apply under regular program.--The Secretary 
     shall ensure that each household covered by a memorandum of 
     understanding under subparagraph (A) is informed that the 
     household may--
       ``(i)(I) submit an application under subsection (e)(2); and
       ``(II) have the eligibility and value of the allotment of 
     the household under the food stamp program determined without 
     regard to this paragraph; or
       ``(ii) decline to participate in the food stamp program.
       ``(G) Transition provision.--Notwithstanding the 
     requirement for the promulgation of regulations under 
     subparagraph (A), the Secretary may approve a request from a 
     State agency to enter into a memorandum of understanding in 
     accordance with this paragraph during the period--
       ``(i) beginning on the date of enactment of this paragraph; 
     and
       ``(ii) ending on the earlier of--

       ``(I) the date of promulgation of the regulations; or
       ``(II) the date that is 3 years after the date of enactment 
     of this paragraph.''.

       (b) Conforming Amendments.--Section 11(j)(1) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2020(j)(1)) is amended--
       (1) by striking ``shall be informed'' and inserting the 
     following: ``shall be--
       ``(A) informed''; and
       (2) by striking ``program and informed'' and inserting the 
     following: ``program; and
       ``(B) informed''.

     SEC. 1235. TRANSITIONAL FOOD STAMPS FOR FAMILIES MOVING FROM 
                   WELFARE.

       (a) In General.--Section 11 of the Food Stamp Act of 1977 
     (7 U.S.C. 2020) is amended by adding at the end the 
     following:
       ``(s) Transitional Benefits Option.--
       ``(1) In general.--A State agency may provide transitional 
     food stamp benefits to a household that ceases to receive 
     cash assistance under a State program funded under part A of 
     title IV of the Social Security Act (42 U.S.C. 601 et seq.).
       ``(2) Transitional benefits period.--Under paragraph (1), a 
     household may continue to receive food stamp benefits for a 
     period of not more than 6 months after the date on which cash 
     assistance is terminated.
       ``(3) Amount of benefits.--During the transitional benefits 
     period under paragraph (2), a household shall receive an 
     amount of food stamp benefits equal to the allotment received 
     in the month immediately preceding the date on which cash 
     assistance was terminated, adjusted for--
       ``(A) the change in household income as a result of the 
     termination of cash assistance; and
       ``(B) any changes in circumstances that may result in an 
     increase in the food stamp allotment of the household and 
     that the household elects to report.
       ``(4) Determination of future eligibility.--In the final 
     month of the transitional benefits period under paragraph 
     (2), the State agency may--

[[Page S12978]]

       ``(A) require the household to cooperate in a 
     redetermination of eligibility; and
       ``(B) initiate a new eligibility review period for the 
     household without regard to whether the preceding eligibility 
     review period has expired.
       ``(5) Limitation.--A household shall not be eligible for 
     transitional benefits under this subsection if the 
     household--
       ``(A) loses eligibility under section 6;
       ``(B) is sanctioned for a failure to perform an action 
     required by Federal, State, or local law relating to a cash 
     assistance program described in paragraph (1); or
       ``(C) is a member of any other category of households 
     designated by the State agency as ineligible for transitional 
     benefits.''.
       (b) Conforming Amendments.--
       (1) Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(c)) is amended by adding at the end the following: ``The 
     limits specified in this section may be extended until the 
     end of any transitional benefit period established under 
     section 11(s).''.
       (2) Section 6(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(c)) is amended by striking ``No household'' and 
     inserting ``Except in a case in which a household is 
     receiving transitional benefits during the transitional 
     benefits period under section 11(s), no household''.

     SEC. 1236. QUALITY CONTROL.

       (a) In General.--Section 16(c) of the Food Stamp Act of 
     1977 (7 U.S.C. 2025(c)) is amended--
       (1) in paragraph (1), by striking ``enhances payment 
     accuracy'' and all that follows through ``(A) the Secretary'' 
     and inserting the following: ``enhances payment accuracy and 
     that has the following elements:
       ``(A) Corrective action plans.--The Secretary shall foster 
     management improvements by the States by requiring State 
     agencies to develop and implement corrective action plans to 
     reduce payment errors.
       ``(B) Investigation and initial sanctions.--
       ``(i) Investigation.--Except as provided under subparagraph 
     (C), for any fiscal year in which the Secretary determines 
     that a 95 percent statistical probability exists that the 
     payment error rate of a State agency exceeds the national 
     performance measure for payment error rates announced under 
     paragraph (6) by more than 1 percentage point, other than for 
     good cause shown, the Secretary shall investigate the 
     administration by the State agency of the food stamp program 
     unless the Secretary determines that sufficient information 
     is already available to review the administration by the 
     State agency.
       ``(ii) Initial sanctions.--If an investigation under clause 
     (i) results in a determination that the State agency has been 
     seriously negligent (as determined under standards 
     promulgated by the Secretary), the State agency shall pay the 
     Secretary an amount that reflects the extent of such 
     negligence (as determined under standards promulgated by the 
     Secretary), not to exceed 5 percent of the amount provided to 
     the State agency under subsection (a) for the fiscal year.
       ``(C) Additional sanctions.--If, for any fiscal year, the 
     Secretary determines that a 95 percent statistical 
     probability exists that the payment error rate of a State 
     agency exceeds the national performance measure for payment 
     error rates announced under paragraph (6) by more than 1 
     percentage point, other than for good cause shown, and that 
     the State agency was sanctioned under this paragraph or was 
     the subject of an investigation or review under subparagraph 
     (B)(i) for each of the 2 immediately preceding fiscal years, 
     the State agency shall pay to the Secretary an amount equal 
     to the product obtained by multiplying--
       ``(i) the value of all allotments issued by the State 
     agency in the fiscal year;
       ``(ii) the lesser of--

       ``(I) the ratio that--

       ``(aa) the amount by which the payment error rate of the 
     State agency for the fiscal year exceeds by more than 1 
     percentage point the national performance measure for the 
     fiscal year; bears to
       ``(bb) 10 percent; or

       ``(II) 1; and

       ``(iii) the amount by which the payment error rate of the 
     State agency for the fiscal year exceeds by more than 1 
     percentage point the national performance measure for the 
     fiscal year.'';
       (2) in paragraph (2)(A), by inserting before the semicolon 
     the following: ``, as adjusted downward as appropriate under 
     paragraph (10)'';
       (3) in the first sentence of paragraph (4), by striking ``, 
     enhanced administrative funding,'' and all that follows and 
     inserting ``under this subsection, high performance bonus 
     payment under paragraph (11), or claim for payment error 
     under paragraph (1).'';
       (4) in the first sentence of paragraph (5), by striking 
     ``to establish'' and all that follows and inserting the 
     following: ``to establish the payment error rate for the 
     State agency for the fiscal year, to comply with paragraph 
     (10), and to determine the amount of any high performance 
     bonus payment of the State agency under paragraph (11) or 
     claim under paragraph (1).'';
       (5) in the first sentence of paragraph (6), by striking 
     ``incentive payments or claims pursuant to paragraphs (1)(A) 
     and (1)(C),'' and inserting ``claims under paragraph (1),''; 
     and
       (6) by adding at the end the following:
       ``(10) Adjustments of payment error rate.--
       ``(A) In general.--
       ``(i) Fiscal year 2002.--Subject to clause (ii), for fiscal 
     year 2002, in applying paragraph (1), the Secretary shall 
     adjust the payment error rate determined under paragraph 
     (2)(A) as necessary to eliminate any increases in errors that 
     result from the State agency's serving a higher percentage of 
     households with earned income, households with 1 or more 
     members who are not United States citizens, or both, than the 
     lesser of, as the case may be--

       ``(I) the percentage of households of the corresponding 
     type that receive food stamps nationally; or
       ``(II) the percentage of--

       ``(aa) households with earned income that received food 
     stamps in the State in fiscal year 1992; or
       ``(bb) households with members who are not United States 
     citizens that received food stamps in the State in fiscal 
     year 1998.
       ``(ii) Expanded applicability to state agencies subject to 
     sanctions.--In the case of a State agency subject to 
     sanctions for fiscal year 2001 or any fiscal year thereafter 
     under paragraph (1), the adjustments described in clause (i) 
     shall apply to the State agency for the fiscal year.
       ``(B) Continuation or modification of adjustments.--For 
     fiscal year 2003 and each fiscal year thereafter, the 
     Secretary may determine whether the continuation or 
     modification of the adjustments described in subparagraph 
     (A)(i) or the substitution of other adjustments is most 
     consistent with achieving the purposes of this Act.''.
       (b) Conforming Amendment.--Section 22(h) of the Food Stamp 
     Act of 1977 (7 U.S.C. 2031(h)) is amended by striking the 
     last sentence.
       (c) Applicability.--Except as otherwise provided in the 
     amendments made by subsection (a), the amendments made by 
     subsection (a) shall apply to fiscal year 2001 and each 
     fiscal year thereafter.

     SEC. 1237. IMPROVEMENT OF CALCULATION OF STATE PERFORMANCE 
                   MEASURES.

       (a) In General.--Section 16(c)(8) of the Food Stamp Act of 
     1977 (7 U.S.C. 2025(c)(8)) is amended--
       (1) in subparagraph (B), by striking ``180 days after the 
     end of the fiscal year'' and inserting ``the first May 31 
     after the end of the fiscal year referred to in subparagraph 
     (A)''; and
       (2) in subparagraph (C), by striking ``30 days thereafter'' 
     and inserting ``the first June 30 after the end of the fiscal 
     year referred to in subparagraph (A)''.
       (b) Effective Date.--The amendments made by this section 
     take effect on the date of enactment of this Act.

     SEC. 1238. BONUSES FOR STATES THAT DEMONSTRATE HIGH 
                   PERFORMANCE.

       (a) In General.--Section 16(c) of the Food Stamp Act of 
     1977 (7 U.S.C. 2025(c)) (as amended by section 1236(a)(6)) is 
     amended--
       (1) in the first sentence of paragraph (1), by striking 
     ``enhanced administrative funding to States with the lowest 
     error rates.'' and inserting ``bonus payments to States that 
     demonstrate high levels of performance.''; and
       (2) by adding at the end the following:
       ``(11) High performance bonus payments.--
       ``(A) In general.--For each fiscal year, the Secretary 
     shall--
       ``(i) measure the performance of each State agency with 
     respect to each of the performance measures specified in 
     subparagraph (B); and
       ``(ii) subject to subparagraph (D), make high performance 
     bonus payments to the State agencies with the highest 
     achievement with respect to those performance measures.
       ``(B) Performance measures.--The performance measures 
     specified in this subparagraph are--
       ``(i)(I) the greatest dollar amount of total claims 
     collected in the fiscal year as a proportion of the 
     overpayment dollar amount in the previous fiscal year; and
       ``(II) the greatest percentage point improvement under 
     clause (i)(I) from the previous fiscal year to the fiscal 
     year;
       ``(ii) the greatest improvement from the previous fiscal 
     year to the fiscal year in the ratio, expressed as a 
     percentage, that--

       ``(I) the number of households in the State that--

       ``(aa) have incomes less than 130 percent of the poverty 
     line (as defined in section 673 of the Community Services 
     Block Grant Act (42 U.S.C. 9902));
       ``(bb) are eligible for food stamp benefits; and
       ``(cc) receive food stamps benefits; bears to

       ``(II) the number of households in the State that--

       ``(aa) have incomes less than 130 percent of the poverty 
     line (as so defined); and
       ``(bb) are eligible for food stamp benefits;
       ``(iii) the lowest overpayment error rate;
       ``(iv) the greatest percentage point improvement from the 
     previous fiscal year to the fiscal year in the overpayment 
     error rate;
       ``(v) the lowest negative error rate;
       ``(vi) the greatest percentage point improvement from the 
     previous year to the fiscal year in the negative error rate;
       ``(vii) the lowest underpayment error rate;
       ``(viii) the greatest percentage point improvement from the 
     previous year to the fiscal year in the underpayment error 
     rate;
       ``(ix) the greatest percentage of new applications 
     processed within the deadlines established under paragraphs 
     (3) and (9) of section 11(e); and

[[Page S12979]]

       ``(x) the least average period of time needed to process 
     applications under paragraphs (3) and (9) of section 11(e).
       ``(C) High performance bonus payments.--
       ``(i) Definition of caseload.--In this subparagraph, the 
     term `caseload' has the meaning given the term in section 
     6(o)(5)(A).
       ``(ii) Amount of payments.--

       ``(I) In general.--For each fiscal year, the Secretary 
     shall--

       ``(aa) make 1 high performance bonus payment of $10,000,000 
     for each of the 10 performance measures under subparagraph 
     (B); and
       ``(bb) allocate the high performance bonus payment with 
     respect to each performance measure in accordance with 
     subclauses (II) and (III).

       ``(II) Payment for performance measure concerning claims 
     collected.--For each fiscal year, the Secretary shall 
     allocate the high performance bonus payment made for the 
     performance measure under subparagraph (B)(i) among the 20 
     State agencies with the highest performance in the 
     performance measure in the ratio that--

       ``(aa) the caseload of each such State agency; bears to
       ``(bb) the caseloads of all such State agencies.

       ``(III) Payments for other performance measures.--For each 
     fiscal year, the Secretary shall allocate the high 
     performance bonus payment made for the performance measure 
     under each of clauses (ii) through (x) of subparagraph (B) 
     among the 10 State agencies with the highest performance in 
     the performance measure in the ratio that--

       ``(aa) the caseload of each such State agency; bears to
       ``(bb) the caseloads of all such State agencies.
       ``(iii) Determination of highest performers.--

       ``(I) In general.--In determining the highest performers 
     under clause (ii), the Secretary shall calculate applicable 
     percentages to 2 decimal places.
       ``(II) Determination in event of a tie.--If, under 
     subclause (I), 2 or more State agencies have the same 
     percentage with respect to a performance measure, the 
     Secretary shall calculate the percentage for the performance 
     measure to as many decimal places as are necessary to 
     determine which State agency has the greatest percentage.

       ``(D) Limitations for state agencies subject to 
     sanctions.--If, for any fiscal year, a State agency is 
     subject to a sanction under paragraph (1)--
       ``(i) the State agency shall not be eligible for a high 
     performance bonus payment under clause (iii), (iv), (vii), or 
     (viii) of subparagraph (B) for the fiscal year; and
       ``(ii) the State agency shall not receive a high 
     performance bonus payment for which the State agency is 
     otherwise eligible under this paragraph for the fiscal year 
     until the obligation of the State agency under the sanction 
     has been satisfied (as determined by the Secretary).
       ``(E) Payments not subject to judicial review.--A 
     determination by the Secretary whether, and in what amount, 
     to make a high performance bonus payment under this paragraph 
     shall not be subject to judicial review.''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall apply to fiscal year 2003 and each fiscal year 
     thereafter.

     SEC. 1239. SIMPLIFIED FUNDING RULES FOR EMPLOYMENT AND 
                   TRAINING PROGRAMS.

       (a) Levels of Funding.--Section 16(h)(1) of the Food Stamp 
     Act of 1977 (7 U.S.C. 2025(h)(1)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``, to remain available until expended,''; 
     and
       (B) by striking clause (vii) and inserting the following:
       ``(vii) to remain available until expended--

       ``(I) for fiscal year 2002, $122,000,000;
       ``(II) for fiscal year 2003, $129,000,000;
       ``(III) for fiscal year 2004, $135,000,000;
       ``(IV) for fiscal year 2005, $142,000,000; and
       ``(V) for fiscal year 2006, $149,000,000.'';

       (2) by striking subparagraph (B) and inserting the 
     following:
       ``(B) Allocation.--Funds made available under subparagraph 
     (A) shall be made available to and reallocated among State 
     agencies under a reasonable formula that--
       ``(i) is determined and adjusted by the Secretary; and
       ``(ii) takes into account the number of individuals who are 
     not exempt from the work requirement under section 6(o).''; 
     and
       (3) by striking subparagraphs (E) through (G).
       (b) Rescission of Carryover Funds.--Notwithstanding any 
     other provision of law, funds provided under section 
     16(h)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
     2025(h)(1)(A)) for any fiscal year before fiscal year 2002 
     shall cease to be available on the date of enactment of this 
     Act, unless obligated by a State agency before that date.
       (c) Participant Expenses.--Section 6(d)(4)(I)(i)(I) of the 
     Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)(I)(i)(I)) is 
     amended by striking ``$25 per month'' and inserting ``an 
     amount not less than $25 per month''.
       (d) Federal Reimbursement.--Section 16(h)(3) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2025(h)(3)) is amended by 
     striking ``$25'' and inserting ``the limit established by the 
     State agency under section 6(d)(4)(I)(i)(I)''.

     SEC. 1240. REAUTHORIZATION OF FOOD STAMP PROGRAM.

       (a) Reductions in Payments for Administrative Costs.--
     Section 16(k)(3) of the Food Stamp Act of 1977 (7 U.S.C. 
     2025(k)(3)) is amended--
       (1) in the first sentence of subparagraph (A), by striking 
     ``2002'' and inserting ``2006''; and
       (2) in subparagraph (B)(ii), by striking ``2002'' and 
     inserting ``2006''.
       (b) Cash Payment Pilot Projects.--Section 17(b)(1)(B)(vi) 
     of the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(B)(vi)) is 
     amended by striking ``2002'' and inserting ``2006''.
       (c) Grants To Improve Food Stamp Participation.--Section 
     17(i)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(i)(1)(A)) is amended in the first sentence by striking 
     ``2002'' and inserting ``2006''.
       (d) Authorization of Appropriations.--Section 18(a)(1) of 
     the Food Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended 
     in the first sentence by striking ``2002'' and inserting 
     ``2006''.

     SEC. 1241. EXPANDED GRANT AUTHORITY.

       Section 17(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(a)(1)) is amended--
       (1) by striking ``, by way of making contracts with or 
     grants to public or private organizations or agencies,'' and 
     inserting ``enter into contracts with or make grants to 
     public or private organizations or agencies under this 
     section to''; and
       (2) by adding at the end the following: ``The waiver 
     authority of the Secretary under subsection (b) shall extend 
     to all contracts and grants under this section.''.

     SEC. 1242. EXEMPTION OF WAIVERS FROM COST-NEUTRALITY 
                   REQUIREMENT.

       Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(b)(1)) is amended by adding at the end the following:
       ``(E) Cost neutrality.--
       ``(i) Requirements for waivers.--

       ``(I) Estimation of costs and savings of waivers.--Before 
     approving a waiver for any demonstration project proposed 
     under this subsection, the Secretary shall estimate the costs 
     or savings likely to result from the waiver.
       ``(II) Approval of waivers.--The Secretary shall not 
     approve any waiver that the Secretary estimates will increase 
     costs to the Federal Government unless--

       ``(aa) exigent circumstances require the approval of the 
     waiver;
       ``(bb) the increase in costs is insignificant; or
       ``(cc) the increase in costs is necessary for a designated 
     research demonstration project under clause (ii).

       ``(III) Multiyear cost neutrality.--A waiver shall not be 
     considered to increase costs to the Federal Government based 
     on the impact of the waiver in any 1 fiscal year if the 
     waiver is not expected to increase costs to the Federal 
     Government over any 3-fiscal year period that includes the 
     fiscal year.

       ``(ii) Exemption from cost-neutrality requirement for 
     certain projects.--

       ``(I) In general.--For each fiscal year, the Secretary may 
     designate research demonstration projects that--

       ``(aa) have a substantial likelihood of producing 
     information on important issues of food stamp program design 
     or operation; and
       ``(bb) the Secretary estimates are likely to increase costs 
     to the Federal Government by a total of not more than 
     $50,000,000 during the period of fiscal years 2002 through 
     2006.

       ``(II) Exemption.--A project described in subclause (I) 
     shall be exempt from clause (i).

       ``(iii) Offsets in other programs.--In making 
     determinations of costs to the Federal Government under this 
     subparagraph, the Secretary shall estimate and consider 
     savings to the Federal Government in other programs in such a 
     manner as the Secretary determines to be appropriate.
       ``(iv) No look-back.--The Secretary shall not be required 
     to adjust any estimate made under this subparagraph to 
     reflect the actual costs of a demonstration project as 
     implemented by a State agency.''.

     SEC. 1243. PROGRAM SIMPLIFICATION DEMONSTRATION PROJECTS.

       (a) Enhanced Waiver Authority.--Section 17 of the Food 
     Stamp Act of 1977 (7 U.S.C. 2026) is amended by striking 
     subsection (e) and inserting the following:
       ``(e) Program Simplification Demonstration Projects.--
       ``(1) In general.--With the approval of the Secretary, not 
     more than 5 State agencies may carry out demonstration 
     projects to test, for a period of not more than 3 years, 
     promising approaches to simplifying the food stamp program.
       ``(2) Types of demonstration projects.--Each demonstration 
     project under paragraph (1) shall test changes in food stamp 
     program rules in not more than 1 of the following 2 areas:
       ``(A)(i) Reporting requirements under section 6(c).
       ``(ii) Verification methods under section 11(e)(3) 
     (including reliance on data from preceding periods that can 
     be obtained or verified electronically).
       ``(iii) A combination of reporting requirements and 
     verification methods.
       ``(B) The income standard of eligibility established under 
     section 5(c)(1), deductions under section 5(e), and income 
     budgeting procedures under section 5(f).
       ``(3) Selection of demonstration projects.--
       ``(A) In general.--The Secretary shall establish a 
     competitive process to select, from all projects proposed by 
     State agencies, the demonstration projects to be carried out 
     under this subsection based on which

[[Page S12980]]

     projects have the greatest likelihood of producing useful 
     information on important issues of food stamp program design 
     or operation, as determined by the Secretary.
       ``(B) Goals.--In selecting demonstration projects, the 
     Secretary shall seek, at a minimum, to achieve a balance 
     between--
       ``(i) simplifying the food stamp program;
       ``(ii) reducing administrative burdens on State agencies, 
     households, and other individuals and entities;
       ``(iii) providing nutrition assistance to individuals most 
     in need; and
       ``(iv) improving access to nutrition assistance.
       ``(C) Projects not eligible for selection.--The Secretary 
     shall not select any demonstration project under this 
     subsection that the Secretary determines does not have a 
     strong likelihood of producing useful information on 
     important issues of food stamp program design or operation.
       ``(D) Diversity of approaches and areas.--In selecting 
     demonstration projects to be carried out under this 
     subsection, the Secretary shall seek to include--
       ``(i) projects that take diverse approaches;
       ``(ii) at least 1 project that will operate in an urban 
     area; and
       ``(ii) at least 1 project that will operate in a rural 
     area.
       ``(E) Maximum aggregate cost of projects.--The estimated 
     aggregate cost of projects selected by the Secretary under 
     this subsection shall not exceed $90,000,000.
       ``(4) Size of area.--Each demonstration project selected 
     under this subsection shall be carried out in an area that 
     contains not more than the greater of--
       ``(A) one-third of the total households receiving 
     allotments in the State; or
       ``(B) the minimum number of households needed to measure 
     the effects of the demonstration projects.
       ``(5) Evaluations.--
       ``(A) In general.--The Secretary shall provide, through 
     contract or other means, for detailed, statistically valid 
     evaluations to be conducted of each demonstration project 
     carried out under this subsection.
       ``(B) Minimum requirements.--Each evaluation under 
     subparagraph (A)--
       ``(i) shall include the study of control groups or areas; 
     and
       ``(ii) shall analyze, at a minimum, the effects of the 
     project design on--

       ``(I) costs of the food stamp program;
       ``(II) State administrative costs;
       ``(III) the integrity of the food stamp program, including 
     errors as measured under section 16(c);
       ``(IV) participation by households in need of nutrition 
     assistance; and
       ``(V) changes in allotment levels experienced by--

       ``(aa) households of various income levels;
       ``(bb) households with elderly, disabled, and employed 
     members;
       ``(cc) households with high shelter costs relative to the 
     incomes of the households; and
       ``(dd) households receiving subsidized housing, child care, 
     or health insurance.
       ``(C) Funding.--From funds made available to carry out this 
     Act, the Secretary shall reserve not more than $6,000,000 to 
     conduct evaluations under this paragraph.
       ``(6) Report to congress.--Not later than January 1, 2006, 
     the Secretary shall submit to Congress a report on the impact 
     of the demonstration projects carried out under this 
     subsection on the food stamp program, including the 
     effectiveness of the demonstration projects in--
       ``(A) delivering nutrition assistance to households most at 
     risk; and
       ``(B) reducing administrative burdens.''.
       (b) Conforming Amendment.--Section 17(b)(1)(B)(iv)(III)(ii) 
     of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(b)(1)(B)(iv)(III)(ii)) is amended by striking 
     ``paragraph'' and inserting ``section''.

     SEC. 1244. CONSOLIDATED BLOCK GRANTS.

       (a) Consolidated Funding.--Section 19(a)(1) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2028(a)(1)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``the Commonwealth of Puerto Rico'' and 
     inserting ``governmental entities specified in subparagraph 
     (D)'';
       (B) in clause (ii), by striking ``and'' at the end; and
       (C) by striking clause (iii) and all that follows and 
     inserting the following:
       ``(iii) for fiscal year 2002, $1,356,000,000; and
       ``(iv) for each of fiscal years 2003 through 2006, the 
     amount provided in clause (iii), as adjusted by the 
     percentage by which the thrifty food plan has been adjusted 
     under section 3(o)(4) between June 30, 2001, and June 30 of 
     the immediately preceding fiscal year;
     to pay the expenditures for nutrition assistance programs for 
     needy persons as described in subparagraphs (B) and (C).'';
       (2) in subparagraph (B), by inserting ``of Puerto Rico'' 
     after ``Commonwealth'' each place it appears; and
       (3) by adding at the end the following:
       ``(C) American samoa.--For each fiscal year, the Secretary 
     shall reserve 0.4 percent of the funds made available under 
     subparagraph (A) for payment to American Samoa to pay the 
     expenditures for a nutrition assistance program extended 
     under section 601(c) of Public Law 96-597 (48 U.S.C. 
     1469d(c)).
       ``(D) Governmental entity.--A governmental entity specified 
     in this subparagraph is--
       ``(i) the Commonwealth of Puerto Rico; and
       ``(ii) for fiscal year 2003 and each fiscal year 
     thereafter, American Samoa.''.
       (b) Conforming Amendment.--Section 24 of the Food Stamp Act 
     of 1977 (7 U.S.C. 2033) is repealed.
       (c) Effective Date.--The amendments made by this section 
     take effect on October 1, 2002.

     SEC. 1245. EXPANDED AVAILABILITY OF COMMODITIES.

       (a) In General.--Section 27 of the Food Stamp Act of 1977 
     (7 U.S.C. 2036) is amended--
       (1) in subsection (a)--
       (A) by striking ``From amounts'' and inserting the 
     following:
       ``(1) In general.--From amounts'';
       (B) by striking ``for each of fiscal years 1997 through 
     2002, the Secretary shall purchase $100,000,000 of'' and 
     inserting ``the Secretary shall use the amount specified in 
     paragraph (2) to purchase''; and
       (C) by adding at the end the following:
       ``(2) Amounts.--The amounts specified in this paragraph 
     are--
       ``(A) for each of fiscal years 1997 through 2001, 
     $100,000,000; and
       ``(B) for each of fiscal years 2002 through 2006, 
     $140,000,000.''; and
       (2) by adding at the end the following:
       ``(c) Use of Funds for Related Costs.--
       ``(1) In general.--For each of fiscal years 2002 through 
     2006, the Secretary shall use $10,000,000 of the funds made 
     available under subsection (a) to pay the direct and indirect 
     costs of States relating to the processing, storing, 
     transporting, and distributing to eligible recipient agencies 
     of--
       ``(A) commodities purchased by the Secretary under 
     subsection (a); and
       ``(B) commodities acquired from other sources, including 
     commodities acquired by gleaning (as defined in section 
     111(a) of the Hunger Prevention Act of 1988 (7 U.S.C. 612c 
     note; Public Law 100-435)).
       ``(2) Allocation of funds.--The amount required to be used 
     in accordance with paragraph (1) shall be allocated in 
     accordance with section 204(a) of the Emergency Food 
     Assistance Act of 1983 (7 U.S.C. 7508(a)).''.
       (b) Effective Date.--The amendments made by this section 
     take effect on the date of enactment of this Act.

                  Subtitle B--Miscellaneous Provisions

     SEC. 1251. REAUTHORIZATION OF COMMODITY PROGRAMS.

       (a) Commodity Distribution Program.--Section 4(a) of the 
     Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 
     612c note; Public Law 93-86) is amended in the first sentence 
     by striking ``2002'' and inserting ``2006''.
       (b) Commodity Supplemental Food Program.--Section 5 of the 
     Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 
     612c note; Public Law 93-86) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Grants Per Assigned Caseload Slot.--
       ``(1) In general.--In carrying out the program under 
     section 4 (referred to in this section as the `commodity 
     supplemental food program'), for each of fiscal years 2003 
     through 2006, the Secretary shall provide to each State 
     agency from funds made available to carry out that section 
     (including any such funds remaining available from the 
     preceding fiscal year), a grant per assigned caseload slot 
     for administrative costs incurred by the State agency and 
     local agencies in the State in operating the commodity 
     supplemental food program.
       ``(2) Amount of grants.--For each of fiscal years 2003 
     through 2006, the amount of each grant per caseload slot 
     shall be equal to $50, adjusted by the percentage change 
     between--
       ``(A) the value of the State and local government price 
     index, as published by the Bureau of Economic Analysis of the 
     Department of Commerce, for the 12-month period ending June 
     30 of the second preceding fiscal year; and
       ``(B) the value of that index for the 12-month period 
     ending June 30 of the preceding fiscal year.''; and
       (2) in subsection (d)(2), by striking ``2002'' each place 
     it appears and inserting ``2006''.
       (c) Distribution of Surplus Commodities to Special 
     Nutrition Projects.--Section 1114(a)(2)(A) of the Agriculture 
     and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended in the 
     first sentence by striking ``2002'' and inserting ``2006''.
       (d) Emergency Food Assistance.--Section 204(a)(1) of the 
     Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) 
     is amended in the first sentence--
       (1) by striking ``2002'' and inserting ``2006'';
       (2) by striking ``administrative''; and
       (3) by inserting ``storage,'' after ``processing,''.

     SEC. 1252. WORK REQUIREMENT FOR LEGAL IMMIGRANTS.

       (a) Working Immigrant Families.--Section 
     402(a)(2)(B)(ii)(I) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1612(a)(2)(B)(ii)(I)) is amended by striking ``40'' and 
     inserting ``40 (or, in the case of the specified Federal 
     program described in paragraph (3)(B), 16)''.
       (b) Conforming Amendments.--
       (1) Section 213A(a)(3)(A) of the Immigration and 
     Nationality Act (8 U.S.C. 1183a(a)(3)(A)) is amended by 
     striking ``40'' and inserting ``40 (or, in the case of the 
     specified Federal program described in section 402(a)(3)(B) 
     of the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996 (8 U.S.C. 1612(a)(3)(B)), 16)''.

[[Page S12981]]

       (2) Section 403(c)(2) of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1613(c)(2)) is amended by adding at the end the following:
       ``(L) Assistance or benefits under the Food Stamp Act of 
     1977 (7 U.S.C. 2011 et seq.).''.
       (3) Section 421(b)(2)(A) of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1631(b)(2)(A)) is amended by striking ``40'' and inserting 
     ``40 (or, in the case of the specified Federal program 
     described in section 402(a)(3)(B), 16)''.

     SEC. 1253. QUALIFIED ALIENS.

       Section 402(a)(2) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)) 
     is amended by adding at the end the following:
       ``(L) Food stamp exception for certain qualified aliens.--
     With respect to eligibility for benefits for the specified 
     Federal program described in paragraph (3)(B), paragraph (1) 
     shall not apply to any individual who has continuously 
     resided in the United States as a qualified alien for a 
     period of 5 years or more.''.

     SEC. 1254. COMMODITIES FOR SCHOOL LUNCH PROGRAMS.

       (a) In General.--Section 6(e)(1)(B) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1755(e)(1)(B)) 
     is amended by striking ``2001'' and inserting ``2003''.
       (b) Effective Date.--The amendment made by this section 
     takes effect on the date of enactment of this Act.

     SEC. 1255. ELIGIBILITY FOR FREE AND REDUCED PRICE MEALS.

       (a) In General.--Section 9(b) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1758(b)) is amended by 
     adding at the end the following:
       ``(7) Exclusion of certain military housing allowances.--
     For each of fiscal years 2002 and 2003, the amount of a basic 
     allowance provided under section 403 of title 37, United 
     States Code, on behalf of a member of a uniformed service for 
     housing that is acquired or constructed under subchapter IV 
     of chapter 169 of title 10, United States Code, or any 
     related provision of law, shall not be considered to be 
     income for the purpose of determining the eligibility of a 
     child who is a member of the household of the member of a 
     uniformed service for free or reduced price lunches under 
     this Act.''.
       (b) Effective Date.--The amendment made by this section 
     takes effect on the date of enactment of this Act.

     SEC. 1256. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

       (a) Establishment.--The Secretary of Agriculture shall 
     carry out and expand a seniors farmers' market nutrition 
     program.
       (b) Program Purposes.--The purposes of the seniors farmers' 
     market nutrition program are--
       (1) to provide to low-income seniors resources in the form 
     of fresh, nutritious, unprepared, locally grown fruits, 
     vegetables, and herbs from farmers' markets, roadside stands, 
     and community-supported agriculture programs;
       (2) to increase domestic consumption of agricultural 
     commodities by expanding or assisting in the expansion of 
     domestic farmers' markets, roadside stands, and community-
     supported agriculture programs; and
       (3) to develop or aid in the development of new farmers' 
     markets, roadside stands, and community-supported agriculture 
     programs.
       (c) Regulations.--The Secretary of Agriculture may 
     promulgate such regulations as the Secretary considers 
     necessary to carry out the seniors farmers' market nutrition 
     program under this section.
       (d) Funding.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     Agriculture to carry out this section $15,000,000.
       (2) Receipt and acceptance.--The Secretary of Agriculture 
     shall be entitled to receive, shall accept, and shall use to 
     carry out this section the funds transferred under paragraph 
     (1), without further appropriation.

     SEC. 1257. ELIGIBILITY FOR ASSISTANCE UNDER THE SPECIAL 
                   SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, 
                   INFANTS, AND CHILDREN.

       (a) In General.--Section 17(d)(2)(B)(i) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(d)(2)(B)(i)) is 
     amended--
       (1) by striking ``basic allowance for housing'' and 
     inserting the following: ``basic allowance--

       ``(I) for housing'';

       (2) by striking ``and'' at the end and inserting ``or''; 
     and
       (3) by adding at the end the following:

       ``(II) provided under section 403 of title 37, United 
     States Code, for housing that is acquired or constructed 
     under subchapter IV of chapter 169 of title 10, United States 
     Code, or any related provision of law; and''.

       (b) Effective Date.--The amendments made by this section 
     take effect on the date of enactment of this Act.

     SEC. 1258. CONGRESSIONAL HUNGER FELLOWS PROGRAM.

       (a) Short Title.--This section may be cited as the 
     ``Congressional Hunger Fellows Act of 2001''.
       (b) Findings.--Congress finds that--
       (1) there are--
       (A) a critical need for compassionate individuals who are 
     committed to assisting people who suffer from hunger; and
       (B) a need for those individuals to initiate and administer 
     solutions to the hunger problem;
       (2) Bill Emerson, the distinguished late Representative 
     from the 8th District of Missouri, demonstrated--
       (A) his commitment to solving the problem of hunger in a 
     bipartisan manner;
       (B) his commitment to public service; and
       (C) his great affection for the institution and the ideals 
     of Congress;
       (3) George T. (Mickey) Leland, the distinguished late 
     Representative from the 18th District of Texas, 
     demonstrated--
       (A) his compassion for individuals in need;
       (B) his high regard for public service; and
       (C) his lively exercise of political talents;
       (4) the special concern that Mr. Emerson and Mr. Leland 
     demonstrated during their lives for the hungry and poor was 
     an inspiration for others to work toward the goals of 
     equality and justice for all; and
       (5) since those 2 outstanding leaders maintained a special 
     bond of friendship regardless of political affiliation and 
     worked together to encourage future leaders to recognize and 
     provide service to others, it is especially appropriate to 
     honor the memory of Mr. Emerson and Mr. Leland by 
     establishing a fellowship program to develop and train the 
     future leaders of the United States to pursue careers in 
     humanitarian service.
       (c) Definitions.--In this section:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on Agriculture and the Committee on 
     International Relations of the House of Representatives; and
       (B) the Committee on Agriculture, Nutrition, and Forestry 
     and the Committee on Foreign Relations of the Senate.
       (2) Board.--The term ``Board'' means the Board of Trustees 
     of the Program.
       (3) Fund.--The term ``Fund'' means the Congressional Hunger 
     Fellows Trust Fund established by subsection (g).
       (4) Program.--The term ``Program'' means the Congressional 
     Hunger Fellows Program established by subsection (d).
       (d) Establishment.--There is established as an independent 
     entity of the legislative branch of the United States 
     Government an entity to be known as the ``Congressional 
     Hunger Fellows Program''.
       (e) Board of Trustees.--
       (1) In general.--The Program shall be subject to the 
     supervision and direction of a Board of Trustees.
       (2) Members of the board.--
       (A) Appointment.--
       (i) In general.--The Board shall be composed of 6 voting 
     members appointed under clause (ii) and 1 nonvoting ex-
     officio member designated by clause (iii).
       (ii) Voting members.--The voting members of the Board shall 
     be the following:

       (I) 2 members appointed by the Speaker of the House of 
     Representatives.
       (II) 1 member appointed by the minority leader of the House 
     of Representatives.
       (III) 2 members appointed by the majority leader of the 
     Senate.
       (IV) 1 member appointed by the minority leader of the 
     Senate.

       (iii) Nonvoting member.--The Executive Director of the 
     Program shall serve as a nonvoting ex-officio member of the 
     Board.
       (B) Terms.--
       (i) In general.--Each member of the Board shall serve for a 
     term of 4 years.
       (ii) Incomplete term.--If a member of the Board does not 
     serve the full term of the member, the individual appointed 
     to fill the resulting vacancy shall be appointed for the 
     remainder of the term of the predecessor of the individual.
       (C) Vacancy.--A vacancy on the Board--
       (i) shall not affect the powers of the Board; and
       (ii) shall be filled in the same manner as the original 
     appointment was made.
       (D) Chairperson.--As the first order of business of the 
     first meeting of the Board, the members shall elect a 
     Chairperson.
       (E) Compensation.--
       (i) In general.--Subject to clause (ii), a member of the 
     Board shall not receive compensation for service on the 
     Board.
       (ii) Travel.--A member of the Board shall be allowed travel 
     expenses, including per diem in lieu of subsistence, at rates 
     authorized for an employee of an agency under subchapter I of 
     chapter 57 of title 5, United States Code, while away from 
     the home or regular place of business of the member in the 
     performance of the duties of the Board.
       (3) Duties.--
       (A) Bylaws.--
       (i) Establishment.--The Board shall establish such bylaws 
     and other regulations as are appropriate to enable the Board 
     to carry out this section, including the duties described in 
     this paragraph.
       (ii) Contents.--Bylaws and other regulations established 
     under clause (i) shall include provisions--

       (I) for appropriate fiscal control, accountability for 
     funds, and operating principles;
       (II) to prevent any conflict of interest, or the appearance 
     of any conflict of interest, in--

       (aa) the procurement and employment actions taken by the 
     Board or by any officer or employee of the Board; and
       (bb) the selection and placement of individuals in the 
     fellowships developed under the Program;

       (III) for the resolution of a tie vote of the members of 
     the Board; and
       (IV) for authorization of travel for members of the Board.

[[Page S12982]]

       (iii) Submission to congress.--Not later than 90 days after 
     the date of the first meeting of the Board, the Chairperson 
     of the Board shall submit to the appropriate congressional 
     committees a copy of the bylaws established by the Board.
       (B) Budget.--For each fiscal year in which the Program is 
     in operation--
       (i) the Board shall determine a budget for the Program for 
     the fiscal year; and
       (ii) all spending by the Program shall be in accordance 
     with the budget unless a change is approved by the Board.
       (C) Process for selection and placement of fellows.--The 
     Board shall review and approve the process established by the 
     Executive Director for the selection and placement of 
     individuals in the fellowships developed under the Program.
       (D) Allocation of funds to fellowships.--The Board shall 
     determine--
       (i) the priority of the programs to be carried out under 
     this section; and
       (ii) the amount of funds to be allocated for the 
     fellowships established under subsection (f)(3)(A).
       (f) Purposes; Authority of Program.--
       (1) Purposes.--The purposes of the Program are--
       (A) to encourage future leaders of the United States to 
     pursue careers in humanitarian service;
       (B) to recognize the needs of people who are hungry and 
     poor;
       (C) to provide assistance and compassion for people in 
     need;
       (D) to increase awareness of the importance of public 
     service; and
       (E) to provide training and development opportunities for 
     the leaders through placement in programs operated by 
     appropriate entities.
       (2) Authority.--The Program may develop fellowships to 
     carry out the purposes of the Program, including the 
     fellowships described in paragraph (3).
       (3) Fellowships.--
       (A) In general.--The Program shall establish and carry out 
     the Bill Emerson Hunger Fellowship and the Mickey Leland 
     Hunger Fellowship.
       (B) Curriculum.--
       (i) In general.--The fellowships established under 
     subparagraph (A) shall provide experience and training to 
     develop the skills and understanding necessary to improve the 
     humanitarian conditions and the lives of individuals who 
     suffer from hunger, including--

       (I) training in direct service to the hungry in conjunction 
     with community-based organizations through a program of field 
     placement; and
       (II) experience in policy development through placement in 
     a governmental entity or nonprofit organization.

       (ii) Focus.--

       (I) Bill emerson hunger fellowship.--The Bill Emerson 
     Hunger Fellowship shall address hunger and other humanitarian 
     needs in the United States.
       (II) Mickey leland hunger fellowship.--The Mickey Leland 
     Hunger Fellowship shall address international hunger and 
     other humanitarian needs.

       (iii) Work plan.--To carry out clause (i) and to assist in 
     the evaluation of the fellowships under paragraph (4), the 
     Program shall, for each fellow, approve a work plan that 
     identifies the target objectives for the fellow in the 
     fellowship, including the specific duties and 
     responsibilities relating to the objectives.
       (C) Period of fellowship.--
       (i) Emerson fellowship.--A Bill Emerson Hunger Fellowship 
     awarded under this paragraph shall be for a period of not 
     more than 1 year.
       (ii) Leland fellowship.--A Mickey Leland Hunger Fellowship 
     awarded under this paragraph shall be for a period of not 
     more than 2 years, of which not less than 1 year shall be 
     dedicated to fulfilling the requirement of subparagraph 
     (B)(i)(I).
       (D) Selection of fellows.--
       (i) In general.--A fellowship shall be awarded through a 
     nationwide competition established by the Program.
       (ii) Qualification.--A successful applicant shall be an 
     individual who has demonstrated--

       (I) an intent to pursue a career in humanitarian service 
     and outstanding potential for such a career;
       (II) leadership potential or leadership experience;
       (III) diverse life experience;
       (IV) proficient writing and speaking skills;
       (V) an ability to live in poor or diverse communities; and
       (VI) such other attributes as the Board determines to be 
     appropriate.

       (iii) Amount of award.--

       (I) In general.--Each individual awarded a fellowship under 
     this paragraph shall receive a living allowance and, subject 
     to subclause (II), an end-of-service award as determined by 
     the Program.
       (II) Requirement for successful completion of fellowship.--
     Each individual awarded a fellowship under this paragraph 
     shall be entitled to receive an end-of-service award at an 
     appropriate rate for each month of satisfactory service as 
     determined by the Executive Director.

       (iv) Recognition of fellowship award.--

       (I) Emerson fellow.--An individual awarded a Bill Emerson 
     Hunger Fellowship shall be known as an ``Emerson Fellow''.
       (II) Leland fellow.--An individual awarded a Mickey Leland 
     Hunger Fellowship shall be known as a ``Leland Fellow''.

       (4) Evaluations.--
       (A) In general.--The Program shall conduct periodic 
     evaluations of the Bill Emerson and Mickey Leland Hunger 
     Fellowships.
       (B) Required elements.--Each evaluation shall include--
       (i) an assessment of the successful completion of the work 
     plan of each fellow;
       (ii) an assessment of the impact of the fellowship on the 
     fellows;
       (iii) an assessment of the accomplishment of the purposes 
     of the Program; and
       (iv) an assessment of the impact of each fellow on the 
     community.
       (g) Trust Fund.--
       (1) Establishment.--There is established in the Treasury of 
     the United States a fund to be known as the ``Congressional 
     Hunger Fellows Trust Fund'', consisting of--
       (A) amounts appropriated to the Fund under subsection (k);
       (B) any amounts earned on investment of amounts in the Fund 
     under paragraph (2); and
       (C) amounts received under subsection (i)(3)(A).
       (2) Investment of amounts.--
       (A) In general.--
       (i) Authority to invest.--The Secretary of the Treasury 
     shall invest such portion of the Fund as is not, in the 
     judgment of the Secretary of the Treasury, required to meet 
     current withdrawals.
       (ii) Types of investments.--Each investment may be made 
     only in an interest-bearing obligation of the United States 
     or an obligation guaranteed as to principal and interest by 
     the United States that, as determined by the Secretary of the 
     Treasury in consultation with the Board, has a maturity 
     suitable for the Fund.
       (B) Acquisition of obligations.--For the purpose of 
     investments under subparagraph (A), obligations may be 
     acquired--
       (i) on original issue at the issue price; or
       (ii) by purchase of outstanding obligations at the market 
     price.
       (C) Sale of obligations.--Any obligation acquired by the 
     Fund may be sold by the Secretary of the Treasury at the 
     market price.
       (D) Credits to fund.--The interest on, and the proceeds 
     from the sale or redemption of, any obligations held in the 
     Fund shall be credited to and form a part of the Fund.
       (3) Transfers of amounts.--
       (A) In general.--The amounts required to be transferred to 
     the Fund under this subsection shall be transferred at least 
     monthly from the general fund of the Treasury to the Fund on 
     the basis of estimates made by the Secretary of the Treasury.
       (B) Adjustments.--Proper adjustment shall be made in 
     amounts subsequently transferred to the extent prior 
     estimates were in excess of or less than the amounts required 
     to be transferred.
       (h) Expenditures; Audits.--
       (1) In general.--The Secretary of the Treasury shall 
     transfer to the Program from the amounts described in 
     subsections (g)(2)(D) and (i)(3)(A) such sums as the Board 
     determines to be necessary to enable the Program to carry out 
     this section.
       (2) Limitation.--The Secretary may not transfer to the 
     Program the amounts appropriated to the Fund under subsection 
     (k).
       (3) Use of funds.--Funds transferred to the Program under 
     paragraph (1) shall be used--
       (A) to provide a living allowance for the fellows;
       (B) to defray the costs of transportation of the fellows to 
     the fellowship placement sites;
       (C) to defray the costs of appropriate insurance of the 
     fellows, the Program, and the Board;
       (D) to defray the costs of preservice and midservice 
     education and training of fellows;
       (E) to pay staff described in subsection (i);
       (F) to make end-of-service awards under subsection 
     (f)(3)(D)(iii)(II); and
       (G) for such other purposes as the Board determines to be 
     appropriate to carry out the Program.
       (4) Audit by comptroller general.--
       (A) In general.--The Comptroller General of the United 
     States shall conduct an annual audit of the accounts of the 
     Program.
       (B) Books.--The Program shall make available to the 
     Comptroller General all books, accounts, financial records, 
     reports, files, and other papers, things, or property 
     belonging to or in use by the Program and necessary to 
     facilitate the audit.
       (C) Report to congress.--The Comptroller General shall 
     submit to the appropriate congressional committees a copy of 
     the results of each audit under subparagraph (A).
       (i) Staff; Powers of Program.--
       (1) Executive director.--
       (A) In general.--The Board shall appoint an Executive 
     Director of the Program who shall--
       (i) administer the Program; and
       (ii) carry out such other functions consistent with this 
     section as the Board shall prescribe.
       (B) Restriction.--The Executive Director may not serve as 
     Chairperson of the Board.
       (C) Compensation.--The Executive Director shall be paid at 
     a rate not to exceed the rate payable for level V of the 
     Executive Schedule under section 5316 of title 5, United 
     States Code.
       (2) Staff.--
       (A) In general.--With the approval of a majority of the 
     Board, the Executive Director may appoint and fix the pay of 
     such additional personnel as the Executive Director considers 
     necessary to carry out this section.

[[Page S12983]]

       (B) Compensation.--An individual appointed under 
     subparagraph (A) shall be paid at a rate not to exceed the 
     rate payable for level GS-15 of the General Schedule.
       (3) Powers.--
       (A) Gifts.--
       (i) In general.--The Program may solicit, accept, use, and 
     dispose of gifts, bequests, or devises of services or 
     property, both real and personal, for the purpose of aiding 
     or facilitating the work of the Program.
       (ii) Use of gifts.--Gifts, bequests, or devises of money 
     and proceeds from sales of other property received as gifts, 
     bequests, or devises shall--

       (I) be deposited in the Fund; and
       (II) be available for disbursement on order of the Board.

       (B) Procurement of temporary and intermittent services.--To 
     carry out this section, the Program may procure temporary and 
     intermittent services in accordance with section 3109(b) of 
     title 5, United States Code, at rates for individuals that do 
     not exceed the daily equivalent of the annual rate of basic 
     pay payable for level GS-15 of the General Schedule.
       (C) Contract authority.--To carry out this section, the 
     Program may, with the approval of a majority of the members 
     of the Board, contract with and compensate Government and 
     private agencies or persons without regard to section 3709 of 
     the Revised Statutes (41 U.S.C. 5).
       (D) Other necessary expenditures.--
       (i) In general.--Subject to clause (ii), the Program may 
     make such other expenditures as the Program considers 
     necessary to carry out this section.
       (ii) Prohibition.--The Program may not expend funds to 
     develop new or expanded projects at which fellows may be 
     placed.
       (j) Report.--Not later than December 31 of each year, the 
     Board shall submit to the appropriate congressional 
     committees a report on the activities of the Program carried 
     out during the preceding fiscal year that includes--
       (1) an analysis of the evaluations conducted under 
     subsection (f)(4) during the fiscal year; and
       (2) a statement of--
       (A) the total amount of funds attributable to gifts 
     received by the Program in the fiscal year under subsection 
     (i)(3)(A); and
       (B) the total amount of funds described in subparagraph (A) 
     that were expended to carry out the Program in the fiscal 
     year.
       (k) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $18,000,000.
       (l) Effective Date.--This section takes effect on October 
     1, 2002.

     SEC. 1259. EFFECTIVE DATE.

       Except as otherwise provided in this title, the amendments 
     made by this title take effect on July 1, 2002, except that a 
     State agency may, at the option of the State agency, elect 
     not to implement the amendments until October 1, 2002.

     SEC. 1260. EFFECTIVENESS OF OTHER NUTRITION TITLE.

       Title IV and the amendments made by title IV shall have no 
     effect.

                       TITLE XIII--ADMINISTRATION

     SEC. 1301. REGULATIONS.

       (a) In General.--The Secretary of Agriculture may 
     promulgate such regulations as are necessary to implement 
     this Act and the amendments made by this Act.
       (b) Procedure.--The promulgation of the regulations and 
     administration of title XI and sections 508 and 1256 and the 
     amendments made by title XI and sections 508 and 1256 shall 
     be made without regard to--
       (1) the notice and comment provisions of section 553 of 
     title 5, United States Code;
       (2) the Statement of Policy of the Secretary of Agriculture 
     effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
     notices of proposed rulemaking and public participation in 
     rulemaking; and
       (3) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'').
       (c) Congressional Review of Agency Rulemaking.--In carrying 
     out subsection (b), the Secretary shall use the authority 
     provided under section 808 of title 5, United States Code.

     SEC. 1302. EFFECT OF AMENDMENTS.

       (a) In General.--Except as otherwise specifically provided 
     in this Act and notwithstanding any other provision of law, 
     this Act and the amendments made by this Act shall not affect 
     the authority of the Secretary of Agriculture to carry out an 
     agricultural market transition, price support, or production 
     adjustment program for any of the 1996 through 2001 crop, 
     fiscal, or calendar years under a provision of law in effect 
     immediately before the date of enactment of this Act.
       (b) Liability.--A provision of this Act or an amendment 
     made by this Act shall not affect the liability of any person 
     under any provision of law as in effect immediately before 
     the date of enactment of this Act.
                                  ____

  SA 2474. Mr. MURKOWSKI submitted an amendment intended to be proposed 
by him to the bill S. 1731, to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place, add the following new section:

     ``SEC.   . WILD FISH AND SHELLFISH.

       ``Section 2106 of the Organic Foods Production Act of 1990 
     (7 U.S.C. 6505) is amended by adding the following new 
     subsection (c) and renumbering accordingly:
       `` `(c) Notwithstanding section 6506(a)(1)(A)), 
     domestically produced wild fish and shellfish products may be 
     labeled as organic if the secretary finds that they meet 
     standards for wholesomeness that are equivalent to standards 
     adopted for fish and shellfish produced from certified 
     organic farms. In the event that standards do not exist for 
     fish and shellfish produced from certified organic farms, the 
     Secretary shall establish appropriate standards to allow 
     labeling of wild fish and shellfish as organic. In 
     establishing such standards for wild fish and shellfish, the 
     Secretary shall consult with wild fish and shellfish 
     producers, processors and sellers, as well as other 
     interested members of the public.' ''
                                  ____

  SA 2475. Mr. MURKOWSKI submitted an amendment intended to be proposed 
by him to the bill S. 1731, to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place, add the following new section:

     ``SEC.   . FOREIGN MARKET DEVELOPMENT AMENDMENT.

       ``Section 5 of the Act of June 29, 1948 (62 Stat. 1072, Ch. 
     704) is amended by inserting `, and fur animals and products 
     without regard to whether such animals are harvested in 
     agricultural operations' after the phrase `aquacultural 
     operations'; and
       ``Section 602 of the Agricultural Act of 1949 (7 U.S.C. 
     1471) is amended by striking `fish used for food,' and 
     inserting `fish used for food, fur animals and products,'.''
                                  ____

  SA 2476. Mr. STEVENS submitted an amendment intended to be proposed 
by him to the bill S. 1731, to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       S. 1731 is amended--
       (1) on page 877, by inserting after line 5 the following:
       ``(9) Wild fish.--The term wild fish includes naturally-
     born and hatchery-raised fish and shellfish harvested in the 
     wild, including fillets, steaks, nuggets, and any other flesh 
     from wild fish or shellfish, and does not include net-pen 
     aquacultural or other farm-raised fish'';
       (2) on page 877, line 22 by inserting ``(I)'' after 
     ``(B)'';
       (3) on page 877, by inserting after line 23 the following:
       ``(II) in the case of wild fish, is harvested in waters of 
     the United States, its territories, or a State and is 
     processed in the United States, its territories, or a State, 
     including the waters thereof; and''; and
       (4) on page 878, by inserting after line 3 the following:
       ``(3) Wild and farm-raised fish.--The notice of country of 
     origin for wild fish and farm-raised fish shall distinguish 
     between wild fish and farm-raised fish, and in the case of 
     wild salmon shall indicate State of origin.''.
                                  ____

  SA 2477. Mr. STEVENS submitted an amendment intended to be proposed 
by him to the bill S. 1731, to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place, insert the following new section:

     SEC.   . REPORT TO CONGRESS ON POUCHED AND CANNED SALMON.

       Not later than 120 days from the date of enactment of this 
     Act, the Secretary shall issue a report to Congress on 
     efforts to expand the promotion, marketing and purchase of 
     pouched and canned salmon harvested and processed in the 
     United States within the food and nutrition programs under 
     his jurisdiction. The report shall include: an analysis of 
     existing pouched and canned salmon inventories in the United 
     States available for purchase; an analysis of the demand for 
     pouched and canned salmon as well as for value-added products 
     such as salmon ``nuggets'' by the Department's partners, 
     including other appropriate Federal agencies, and

[[Page S12984]]

     customers; a marketing strategy to stimulate and increase 
     that demand; and, a purchasing strategy to ensure that 
     adequate supplies of pouched and canned salmon as well as 
     other value-added salmon products are available to meet that 
     demand.
                                  ____

  SA 2478. Mr. REID (for Mr. Lieberman (for himself and Mr. Thompson) 
proposed an amendment to the bill H.R. 2336, An act to extend for 4 
years, through December 31, 2005, the authority to redact financial 
disclosure statements of judicial employees and judicial officers; as 
follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. EXTENSION OF SUNSET PROVISION.

       Section 105(b)(3)(E) of the Ethics in Government Act of 
     1978 (5 U.S.C. App.) is amended by striking ``2001'' each 
     place it appears and inserting ``2005''.
                                  ____

  SA 2479. Mr. REID (for Mr. Lieberman) proposed an amendment to the 
bill H.R. 2336, An act to extend for 4 years, through December 31, 
2005, the authority to redact financial disclosure statements of 
judicial employees and judicial officers; as follows:

       Amend the title so as to read: ``An Act to extend for 4 
     years, through December 31, 2005, the authority to redact 
     financial disclosure statements of judicial employees and 
     judicial officers.''.
                                  ____

  SA 2480. Mr. REID (for Mr. Lieberman) proposed an amendment to the 
bill H.R. 2199, to amend the National Capital Revitalization and Self-
Government Improvement Act of 1997 to permit any Federal law 
enforcement agency to enter into a cooperative agreement with the 
Metropolitan Police Department of the District of Columbia to assist 
the Department in carrying out crime prevention and law enforcement 
activities in the District of Columbia if deemed appropriate by the 
Chief of the Department and the United States Attorney for the District 
of Columbia, and for other purposes; as follows:

       On page 2, line 11, strike ``sec. 4-192(d)'' and insert 
     ``sec. 5-133.17(d)''.

                          ____________________