[Congressional Record Volume 154, Number 85 (Thursday, May 22, 2008)]
[House]
[Pages H4469-H4655]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FOOD, CONSERVATION, AND ENERGY ACT OF 2008
Mr. PETERSON of Minnesota. Mr. Speaker, I move to suspend the rules
and pass the bill (H.R. 6124) to provide for the continuation of
agricultural and other programs of the Department of Agriculture
through fiscal year 2012, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 6124
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Food,
Conservation, and Energy Act of 2008''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
Sec. 3. Explanatory statement.
Sec. 4. Repeal of duplicative enactment.
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TITLE I--COMMODITY PROGRAMS
Sec. 1001. Definitions.
Subtitle A--Direct Payments and Counter-Cyclical Payments
Sec. 1101. Base acres.
Sec. 1102. Payment yields.
Sec. 1103. Availability of direct payments.
Sec. 1104. Availability of counter-cyclical payments.
Sec. 1105. Average crop revenue election program.
Sec. 1106. Producer agreement required as condition of provision of
payments.
Sec. 1107. Planting flexibility.
Sec. 1108. Special rule for long grain and medium grain rice.
Sec. 1109. Period of effectiveness.
Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments
Sec. 1201. Availability of nonrecourse marketing assistance loans for
loan commodities.
Sec. 1202. Loan rates for nonrecourse marketing assistance loans.
Sec. 1203. Term of loans.
Sec. 1204. Repayment of loans.
Sec. 1205. Loan deficiency payments.
Sec. 1206. Payments in lieu of loan deficiency payments for grazed
acreage.
Sec. 1207. Special marketing loan provisions for upland cotton.
Sec. 1208. Special competitive provisions for extra long staple cotton.
Sec. 1209. Availability of recourse loans for high moisture feed grains
and seed cotton.
Sec. 1210. Adjustments of loans.
Subtitle C--Peanuts
Sec. 1301. Definitions.
Sec. 1302. Base acres for peanuts for a farm.
Sec. 1303. Availability of direct payments for peanuts.
Sec. 1304. Availability of counter-cyclical payments for peanuts.
Sec. 1305. Producer agreement required as condition on provision of
payments.
Sec. 1306. Planting flexibility.
Sec. 1307. Marketing assistance loans and loan deficiency payments for
peanuts.
Sec. 1308. Adjustments of loans.
Subtitle D--Sugar
Sec. 1401. Sugar program.
Sec. 1402. United States membership in the International Sugar
Organization.
Sec. 1403. Flexible marketing allotments for sugar.
Sec. 1404. Storage facility loans.
Sec. 1405. Commodity Credit Corporation storage payments.
Subtitle E--Dairy
Sec. 1501. Dairy product price support program.
Sec. 1502. Dairy forward pricing program.
Sec. 1503. Dairy export incentive program.
Sec. 1504. Revision of Federal marketing order amendment procedures.
Sec. 1505. Dairy indemnity program.
Sec. 1506. Milk income loss contract program.
Sec. 1507. Dairy promotion and research program.
Sec. 1508. Report on Department of Agriculture reporting procedures for
nonfat dry milk.
Sec. 1509. Federal Milk Marketing Order Review Commission.
Sec. 1510. Mandatory reporting of dairy commodities.
Subtitle F--Administration
Sec. 1601. Administration generally.
Sec. 1602. Suspension of permanent price support authority.
Sec. 1603. Payment limitations.
Sec. 1604. Adjusted gross income limitation.
Sec. 1605. Availability of quality incentive payments for covered
oilseed producers.
Sec. 1606. Personal liability of producers for deficiencies.
Sec. 1607. Extension of existing administrative authority regarding
loans.
Sec. 1608. Assignment of payments.
Sec. 1609. Tracking of benefits.
Sec. 1610. Government publication of cotton price forecasts.
Sec. 1611. Prevention of deceased individuals receiving payments under
farm commodity programs.
Sec. 1612. Hard white wheat development program.
Sec. 1613. Durum wheat quality program.
Sec. 1614. Storage facility loans.
Sec. 1615. State, county, and area committees.
Sec. 1616. Prohibition on charging certain fees.
Sec. 1617. Signature authority.
Sec. 1618. Modernization of Farm Service Agency.
Sec. 1619. Information gathering.
Sec. 1620. Leasing of office space.
Sec. 1621. Geographically disadvantaged farmers and ranchers.
Sec. 1622. Implementation.
Sec. 1623. Repeals.
TITLE II--CONSERVATION
Subtitle A--Definitions and Highly Erodible Land and Wetland
Conservation
Sec. 2001. Definitions relating to conservation title of Food Security
Act of 1985.
Sec. 2002. Review of good faith determinations related to highly
erodible land conservation.
Sec. 2003. Review of good faith determinations related to wetland
conservation.
Subtitle B--Conservation Reserve Program
Sec. 2101. Extension of conservation reserve program.
Sec. 2102. Land eligible for enrollment in conservation reserve.
Sec. 2103. Maximum enrollment of acreage in conservation reserve.
Sec. 2104. Designation of conservation priority areas.
Sec. 2105. Treatment of multi-year grasses and legumes.
Sec. 2106. Revised pilot program for enrollment of wetland and buffer
acreage in conservation reserve.
Sec. 2107. Additional duty of participants under conservation reserve
contracts.
Sec. 2108. Managed haying, grazing, or other commercial use of forage
on enrolled land and installation of wind turbines.
Sec. 2109. Cost sharing payments relating to trees, windbreaks,
shelterbelts, and wildlife corridors.
Sec. 2110. Evaluation and acceptance of contract offers, annual rental
payments, and payment limitations.
Sec. 2111. Conservation reserve program transition incentives for
beginning farmers or ranchers and socially disadvantaged
farmers or ranchers.
Subtitle C--Wetlands Reserve Program
Sec. 2201. Establishment and purpose of wetlands reserve program.
Sec. 2202. Maximum enrollment and enrollment methods.
Sec. 2203. Duration of wetlands reserve program and lands eligible for
enrollment.
Sec. 2204. Terms of wetlands reserve program easements.
Sec. 2205. Compensation for easements under wetlands reserve program.
Sec. 2206. Wetlands reserve enhancement program and reserved rights
pilot program.
Sec. 2207. Duties of Secretary of Agriculture under wetlands reserve
program.
Sec. 2208. Payment limitations under wetlands reserve contracts and
agreements.
Sec. 2209. Repeal of payment limitations exception for State agreements
for wetlands reserve enhancement.
Sec. 2210. Report on implications of long-term nature of conservation
easements.
Subtitle D--Conservation Stewardship Program
Sec. 2301. Conservation stewardship program.
Subtitle E--Farmland Protection and Grassland Reserve
Sec. 2401. Farmland protection program.
Sec. 2402. Farm viability program.
Sec. 2403. Grassland reserve program.
Subtitle F--Environmental Quality Incentives Program
Sec. 2501. Purposes of environmental quality incentives program.
Sec. 2502. Definitions.
Sec. 2503. Establishment and administration of environmental quality
incentives program.
Sec. 2504. Evaluation of applications.
Sec. 2505. Duties of producers under environmental quality incentives
program.
Sec. 2506. Environmental quality incentives program plan.
Sec. 2507. Duties of the Secretary.
Sec. 2508. Limitation on environmental quality incentives program
payments.
Sec. 2509. Conservation innovation grants and payments.
Sec. 2510. Agricultural water enhancement program.
Subtitle G--Other Conservation Programs of the Food Security Act of
1985
Sec. 2601. Conservation of private grazing land.
Sec. 2602. Wildlife habitat incentive program.
Sec. 2603. Grassroots source water protection program.
Sec. 2604. Great Lakes Basin Program for soil erosion and sediment
control.
Sec. 2605. Chesapeake Bay watershed program.
Sec. 2606. Voluntary public access and habitat incentive program.
Subtitle H--Funding and Administration of Conservation Programs
Sec. 2701. Funding of conservation programs under Food Security Act of
1985.
Sec. 2702. Authority to accept contributions to support conservation
programs.
Sec. 2703. Regional equity and flexibility.
Sec. 2704. Assistance to certain farmers and ranchers to improve their
access to conservation programs.
Sec. 2705. Report regarding enrollments and assistance under
conservation programs.
Sec. 2706. Delivery of conservation technical assistance.
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Sec. 2707. Cooperative conservation partnership initiative.
Sec. 2708. Administrative requirements for conservation programs.
Sec. 2709. Environmental services markets.
Sec. 2710. Agriculture conservation experienced services program.
Sec. 2711. Establishment of State technical committees and their
responsibilities.
Subtitle I--Conservation Programs Under Other Laws
Sec. 2801. Agricultural management assistance program.
Sec. 2802. Technical assistance under Soil Conservation and Domestic
Allotment Act.
Sec. 2803. Small watershed rehabilitation program.
Sec. 2804. Amendments to Soil and Water Resources Conservation Act of
1977.
Sec. 2805. Resource Conservation and Development Program.
Sec. 2806. Use of funds in Basin Funds for salinity control activities
upstream of Imperial Dam.
Sec. 2807. Desert terminal lakes.
Subtitle J--Miscellaneous Conservation Provisions
Sec. 2901. High Plains water study.
Sec. 2902. Naming of National Plant Materials Center at Beltsville,
Maryland, in honor of Norman A. Berg.
Sec. 2903. Transition.
Sec. 2904. Regulations.
TITLE III--TRADE
Subtitle A--Food for Peace Act
Sec. 3001. Short title.
Sec. 3002. United States policy.
Sec. 3003. Food aid to developing countries.
Sec. 3004. Trade and development assistance.
Sec. 3005. Agreements regarding eligible countries and private
entities.
Sec. 3006. Use of local currency payments.
Sec. 3007. General authority.
Sec. 3008. Provision of agricultural commodities.
Sec. 3009. Generation and use of currencies by private voluntary
organizations and cooperatives.
Sec. 3010. Levels of assistance.
Sec. 3011. Food Aid Consultative Group.
Sec. 3012. Administration.
Sec. 3013. Assistance for stockpiling and rapid transportation,
delivery, and distribution of shelf-stable prepackaged
foods.
Sec. 3014. General authorities and requirements.
Sec. 3015. Definitions.
Sec. 3016. Use of Commodity Credit Corporation.
Sec. 3017. Administrative provisions.
Sec. 3018. Consolidation and modification of annual reports regarding
agricultural trade issues.
Sec. 3019. Expiration of assistance.
Sec. 3020. Authorization of appropriations.
Sec. 3021. Minimum level of nonemergency food assistance.
Sec. 3022. Coordination of foreign assistance programs.
Sec. 3023. Micronutrient fortification programs.
Sec. 3024. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.
Subtitle B--Agricultural Trade Act of 1978 and Related Statutes
Sec. 3101. Export credit guarantee program.
Sec. 3102. Market access program.
Sec. 3103. Export enhancement program.
Sec. 3104. Foreign market development cooperator program.
Sec. 3105. Food for Progress Act of 1985.
Sec. 3106. McGovern-Dole International Food for Education and Child
Nutrition Program.
Subtitle C--Miscellaneous
Sec. 3201. Bill Emerson Humanitarian Trust.
Sec. 3202. Global Crop Diversity Trust.
Sec. 3203. Technical assistance for specialty crops.
Sec. 3204. Emerging markets and facility guarantee loan program.
Sec. 3205. Consultative Group to Eliminate the Use of Child Labor and
Forced Labor in Imported Agricultural Products.
Sec. 3206. Local and regional food aid procurement projects.
Subtitle D--Softwood Lumber
Sec. 3301. Softwood lumber.
TITLE IV--NUTRITION
Subtitle A--Food Stamp Program
PART I--Renaming of Food Stamp Act and Program
Sec. 4001. Renaming of Food Stamp Act and program.
Sec. 4002. Conforming amendments.
PART II--Benefit Improvements
Sec. 4101. Exclusion of certain military payments from income.
Sec. 4102. Strengthening the food purchasing power of low-income
Americans.
Sec. 4103. Supporting working families with child care expenses.
Sec. 4104. Asset indexation, education, and retirement accounts.
Sec. 4105. Facilitating simplified reporting.
Sec. 4106. Transitional benefits option.
Sec. 4107. Increasing the minimum benefit.
Sec. 4108. Employment, training, and job retention.
PART III--Program Operations
Sec. 4111. Nutrition education.
Sec. 4112. Technical clarification regarding eligibility.
Sec. 4113. Clarification of split issuance.
Sec. 4114. Accrual of benefits.
Sec. 4115. Issuance and use of program benefits.
Sec. 4116. Review of major changes in program design.
Sec. 4117. Civil rights compliance.
Sec. 4118. Codification of access rules.
Sec. 4119. State option for telephonic signature.
Sec. 4120. Privacy protections.
Sec. 4121. Preservation of access and payment accuracy.
Sec. 4122. Funding of employment and training programs.
PART IV--Program Integrity
Sec. 4131. Eligibility disqualification.
Sec. 4132. Civil penalties and disqualification of retail food stores
and wholesale food concerns.
Sec. 4133. Major systems failures.
PART V--Miscellaneous
Sec. 4141. Pilot projects to evaluate health and nutrition promotion in
the supplemental nutrition assistance program.
Sec. 4142. Study on comparable access to supplemental nutrition
assistance for Puerto Rico.
Subtitle B--Food Distribution Programs
PART I--Emergency Food Assistance Program
Sec. 4201. Emergency food assistance.
Sec. 4202. Emergency food program infrastructure grants.
PART II--Food Distribution Program on Indian Reservations
Sec. 4211. Assessing the nutritional value of the FDPIR food package.
PART III--Commodity Supplemental Food Program
Sec. 4221. Commodity supplemental food program.
PART IV--Senior Farmers' Market Nutrition Program
Sec. 4231. Seniors farmers' market nutrition program.
Subtitle C--Child Nutrition and Related Programs
Sec. 4301. State performance on enrolling children receiving program
benefits for free school meals.
Sec. 4302. Purchases of locally produced foods.
Sec. 4303. Healthy food education and program replicability.
Sec. 4304. Fresh fruit and vegetable program.
Sec. 4305. Whole grain products.
Sec. 4306. Buy American requirements.
Sec. 4307. Survey of foods purchased by school food authorities.
Subtitle D--Miscellaneous
Sec. 4401. Bill Emerson National Hunger Fellows and Mickey Leland
International Hunger Fellows.
Sec. 4402. Assistance for community food projects.
Sec. 4403. Joint nutrition monitoring and related research activities.
Sec. 4404. Section 32 funds for purchase of fruits, vegetables, and
nuts to support domestic nutrition assistance programs.
Sec. 4405. Hunger-free communities.
Sec. 4406. Reauthorization of Federal food assistance programs.
Sec. 4407. Effective and implementation dates.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
Sec. 5001. Direct loans.
Sec. 5002. Conservation loan and loan guarantee program.
Sec. 5003. Limitations on amount of farm ownership loans.
Sec. 5004. Down payment loan program.
Sec. 5005. Beginning farmer or rancher and socially disadvantaged
farmer or rancher contract land sales program.
Subtitle B--Operating Loans
Sec. 5101. Farming experience as eligibility requirement.
Sec. 5102. Limitations on amount of operating loans.
Sec. 5103. Suspension of limitation on period for which borrowers are
eligible for guaranteed assistance.
Subtitle C--Emergency Loans
Sec. 5201. Eligibility of equine farmers and ranchers for emergency
loans.
Subtitle D--Administrative Provisions
Sec. 5301. Beginning farmer and rancher individual development accounts
pilot program.
Sec. 5302. Inventory sales preferences; loan fund set-asides.
Sec. 5303. Loan authorization levels.
Sec. 5304. Transition to private commercial or other sources of credit.
Sec. 5305. Extension of the right of first refusal to reacquire
homestead property to immediate family members of
borrower-owner.
Sec. 5306. Rural development and farm loan program activities.
Subtitle E--Farm Credit
Sec. 5401. Farm Credit System Insurance Corporation.
Sec. 5402. Technical correction.
Sec. 5403. Bank for cooperatives voting stock.
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Sec. 5404. Premiums.
Sec. 5405. Certification of premiums.
Sec. 5406. Rural utility loans.
Sec. 5407. Equalization of loan-making powers of certain district
associations.
Subtitle F--Miscellaneous
Sec. 5501. Loans to purchasers of highly fractioned land.
TITLE VI--RURAL DEVELOPMENT
Subtitle A--Consolidated Farm and Rural Development Act
Sec. 6001. Water, waste disposal, and wastewater facility grants.
Sec. 6002. SEARCH grants.
Sec. 6003. Rural business opportunity grants.
Sec. 6004. Child day care facility grants, loans, and loan guarantees.
Sec. 6005. Community facility grants to advance broadband.
Sec. 6006. Rural water and wastewater circuit rider program.
Sec. 6007. Tribal College and University essential community
facilities.
Sec. 6008. Emergency and imminent community water assistance grant
program.
Sec. 6009. Water systems for rural and native villages in Alaska.
Sec. 6010. Grants to nonprofit organizations to finance the
construction, refurbishing, and servicing of
individually-owned household water well systems in rural
areas for individuals with low or moderate incomes.
Sec. 6011. Interest rates for water and waste disposal facilities
loans.
Sec. 6012. Cooperative equity security guarantee.
Sec. 6013. Rural cooperative development grants.
Sec. 6014. Grants to broadcasting systems.
Sec. 6015. Locally or regionally produced agricultural food products.
Sec. 6016. Appropriate technology transfer for rural areas.
Sec. 6017. Rural economic area partnership zones.
Sec. 6018. Definitions.
Sec. 6019. National rural development partnership.
Sec. 6020. Historic barn preservation.
Sec. 6021. Grants for NOAA weather radio transmitters.
Sec. 6022. Rural microentrepreneur assistance program.
Sec. 6023. Grants for expansion of employment opportunities for
individuals with disabilities in rural areas.
Sec. 6024. Health care services.
Sec. 6025. Delta Regional Authority.
Sec. 6026. Northern Great Plains Regional Authority.
Sec. 6027. Rural Business Investment Program.
Sec. 6028. Rural Collaborative Investment Program.
Sec. 6029. Funding of pending rural development loan and grant
applications.
Subtitle B--Rural Electrification Act of 1936
Sec. 6101. Energy efficiency programs.
Sec. 6102. Reinstatement of Rural Utility Services direct lending.
Sec. 6103. Deferment of payments to allows loans for improved energy
efficiency and demand reduction and for energy efficiency
and use audits.
Sec. 6104. Rural electrification assistance.
Sec. 6105. Substantially underserved trust areas.
Sec. 6106. Guarantees for bonds and notes issued for electrification or
telephone purposes.
Sec. 6107. Expansion of 911 access.
Sec. 6108. Electric loans for renewable energy.
Sec. 6109. Bonding requirements.
Sec. 6110. Access to broadband telecommunications services in rural
areas.
Sec. 6111. National Center for Rural Telecommunications Assessment.
Sec. 6112. Comprehensive rural broadband strategy.
Sec. 6113. Study on rural electric power generation.
Subtitle C--Miscellaneous
Sec. 6201. Distance learning and telemedicine.
Sec. 6202. Value-added agricultural market development program grants.
Sec. 6203. Agriculture innovation center demonstration program.
Sec. 6204. Rural firefighters and emergency medical service assistance
program.
Sec. 6205. Insurance of loans for housing and related facilities for
domestic farm labor.
Sec. 6206. Study of rural transportation issues.
Subtitle D--Housing Assistance Council
Sec. 6301. Short title.
Sec. 6302. Assistance to Housing Assistance Council.
Sec. 6303. Audits and reports.
Sec. 6304. Persons not lawfully present in the United States.
Sec. 6305. Limitation on use of authorized amounts.
TITLE VII--RESEARCH AND RELATED MATTERS
Subtitle A--National Agricultural Research, Extension, and Teaching
Policy Act of 1977
Sec. 7101. Definitions.
Sec. 7102. National Agricultural Research, Extension, Education, and
Economics Advisory Board.
Sec. 7103. Specialty crop committee report.
Sec. 7104. Renewable energy committee.
Sec. 7105. Veterinary medicine loan repayment.
Sec. 7106. Eligibility of University of the District of Columbia for
grants and fellowships for food and agricultural sciences
education.
Sec. 7107. Grants to 1890 schools to expand extension capacity.
Sec. 7108. Expansion of food and agricultural sciences awards.
Sec. 7109. Grants and fellowships for food and agricultural sciences
education.
Sec. 7110. Grants for research on production and marketing of alcohols
and industrial hydrocarbons from agricultural commodities
and forest products.
Sec. 7111. Policy research centers.
Sec. 7112. Education grants to Alaska Native-serving institutions and
Native Hawaiian-serving institutions.
Sec. 7113. Emphasis of human nutrition initiative.
Sec. 7114. Human nutrition intervention and health promotion research
program.
Sec. 7115. Pilot research program to combine medical and agricultural
research.
Sec. 7116. Nutrition education program.
Sec. 7117. Continuing animal health and disease research programs.
Sec. 7118. Cooperation among eligible institutions.
Sec. 7119. Appropriations for research on national or regional
problems.
Sec. 7120. Animal health and disease research program.
Sec. 7121. Authorization level for extension at 1890 land-grant
colleges.
Sec. 7122. Authorization level for agricultural research at 1890 land-
grant colleges.
Sec. 7123. Grants to upgrade agricultural and food sciences facilities
at 1890 land-grant colleges, including Tuskegee
University.
Sec. 7124. Grants to upgrade agriculture and food sciences facilities
at the District of Columbia land-grant university.
Sec. 7125. Grants to upgrade agriculture and food sciences facilities
and equipment at insular area land-grant institutions.
Sec. 7126. National research and training virtual centers.
Sec. 7127. Matching funds requirement for research and extension
activities of 1890 institutions.
Sec. 7128. Hispanic-serving institutions.
Sec. 7129. Hispanic-serving agricultural colleges and universities.
Sec. 7130. International agricultural research, extension, and
education.
Sec. 7131. Competitive grants for international agricultural science
and education programs.
Sec. 7132. Administration.
Sec. 7133. Research equipment grants.
Sec. 7134. University research.
Sec. 7135. Extension Service.
Sec. 7136. Supplemental and alternative crops.
Sec. 7137. New Era Rural Technology Program.
Sec. 7138. Capacity building grants for NLGCA Institutions.
Sec. 7139. Borlaug international agricultural science and technology
fellowship program.
Sec. 7140. Aquaculture assistance programs.
Sec. 7141. Rangeland research grants.
Sec. 7142. Special authorization for biosecurity planning and response.
Sec. 7143. Resident instruction and distance education grants program
for insular area institutions of higher education.
Subtitle B--Food, Agriculture, Conservation, and Trade Act of 1990
Sec. 7201. National genetics resources program.
Sec. 7202. National Agricultural Weather Information System.
Sec. 7203. Partnerships.
Sec. 7204. High-priority research and extension areas.
Sec. 7205. Nutrient management research and extension initiative.
Sec. 7206. Organic Agriculture Research and Extension Initiative.
Sec. 7207. Agricultural bioenergy feedstock and energy efficiency
research and extension initiative.
Sec. 7208. Farm business management and benchmarking.
Sec. 7209. Agricultural telecommunications program.
Sec. 7210. Assistive technology program for farmers with disabilities.
Sec. 7211. Research on honey bee diseases.
Sec. 7212. National Rural Information Center Clearinghouse.
Subtitle C--Agricultural Research, Extension, and Education Reform Act
of 1998
Sec. 7301. Peer and merit review.
Sec. 7302. Partnerships for high-value agricultural product quality
research.
Sec. 7303. Precision agriculture.
Sec. 7304. Biobased products.
Sec. 7305. Thomas Jefferson Initiative for Crop Diversification.
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Sec. 7306. Integrated research, education, and extension competitive
grants program.
Sec. 7307. Fusarium graminearum grants.
Sec. 7308. Bovine Johne's disease control program.
Sec. 7309. Grants for youth organizations.
Sec. 7310. Agricultural biotechnology research and development for
developing countries.
Sec. 7311. Specialty crop research initiative.
Sec. 7312. Food animal residue avoidance database program.
Sec. 7313. Office of pest management policy.
Subtitle D--Other Laws
Sec. 7401. Critical Agricultural Materials Act.
Sec. 7402. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7403. Smith-Lever Act.
Sec. 7404. Hatch Act of 1887.
Sec. 7405. Agricultural Experiment Station Research Facilities Act.
Sec. 7406. Agriculture and food research initiative.
Sec. 7407. Agricultural Risk Protection Act of 2000.
Sec. 7408. Exchange or sale authority.
Sec. 7409. Enhanced use lease authority pilot program.
Sec. 7410. Beginning farmer and rancher development program.
Sec. 7411. Public education regarding use of biotechnology in producing
food for human consumption.
Sec. 7412. McIntire-Stennis Cooperative Forestry Act.
Sec. 7413. Renewable Resources Extension Act of 1978.
Sec. 7414. National Aquaculture Act of 1980.
Sec. 7415. Construction of Chinese Garden at the National Arboretum.
Sec. 7416. National Agricultural Research, Extension, and Teaching
Policy Act Amendments of 1985.
Sec. 7417. Eligibility of University of the District of Columbia for
certain land-grant university assistance.
Subtitle E--Miscellaneous
PART I--General Provisions
Sec. 7501. Definitions.
Sec. 7502. Grazinglands research laboratory.
Sec. 7503. Fort Reno Science Park Research Facility.
Sec. 7504. Roadmap.
Sec. 7505. Review of plan of work requirements.
Sec. 7506. Budget submission and funding.
PART II--Research, Education, and Economics
Sec. 7511. Research, education, and economics.
PART III--New Grant and Research Programs
Sec. 7521. Research and education grants for the study of antibiotic-
resistant bacteria.
Sec. 7522. Farm and ranch stress assistance network.
Sec. 7523. Seed distribution.
Sec. 7524. Live virus foot and mouth disease research.
Sec. 7525. Natural products research program.
Sec. 7526. Sun grant program.
Sec. 7527. Study and report on food deserts.
Sec. 7528. Demonstration project authority for temporary positions.
Sec. 7529. Agricultural and rural transportation research and
education.
TITLE VIII--FORESTRY
Subtitle A--Amendments to Cooperative Forestry Assistance Act of 1978
Sec. 8001. National priorities for private forest conservation.
Sec. 8002. Long-term State-wide assessments and strategies for forest
resources.
Sec. 8003. Community forest and open space conservation program.
Sec. 8004. Assistance to the Federated States of Micronesia, the
Republic of the Marshall Islands, and the Republic of
Palau.
Sec. 8005. Changes to Forest Resource Coordinating Committee.
Sec. 8006. Changes to State Forest Stewardship Coordinating Committees.
Sec. 8007. Competition in programs under Cooperative Forestry
Assistance Act of 1978.
Sec. 8008. Competitive allocation of funds for cooperative forest
innovation partnership projects.
Subtitle B--Cultural and Heritage Cooperation Authority
Sec. 8101. Purposes.
Sec. 8102. Definitions.
Sec. 8103. Reburial of human remains and cultural items.
Sec. 8104. Temporary closure for traditional and cultural purposes.
Sec. 8105. Forest products for traditional and cultural purposes.
Sec. 8106. Prohibition on disclosure.
Sec. 8107. Severability and savings provisions.
Subtitle C--Amendments to Other Forestry-Related Laws
Sec. 8201. Rural revitalization technologies.
Sec. 8202. Office of International Forestry.
Sec. 8203. Emergency forest restoration program.
Sec. 8204. Prevention of illegal logging practices.
Sec. 8205. Healthy forests reserve program.
Subtitle D--Boundary Adjustments and Land Conveyance Provisions
Sec. 8301. Green Mountain National Forest boundary adjustment.
Sec. 8302. Land conveyances, Chihuahuan Desert Nature Park, New Mexico,
and George Washington National Forest, Virginia.
Sec. 8303. Sale and exchange of National Forest System land, Vermont.
Subtitle E--Miscellaneous Provisions
Sec. 8401. Qualifying timber contract options.
Sec. 8402. Hispanic-serving institution agricultural land national
resources leadership program.
TITLE IX--ENERGY
Sec. 9001. Energy.
Sec. 9002. Biofuels infrastructure study.
Sec. 9003. Renewable fertilizer study.
TITLE X--HORTICULTURE AND ORGANIC AGRICULTURE
Sec. 10001. Definitions.
Subtitle A--Horticulture Marketing and Information
Sec. 10101. Independent evaluation of Department of Agriculture
commodity purchase process.
Sec. 10102. Quality requirements for clementines.
Sec. 10103. Inclusion of specialty crops in census of agriculture.
Sec. 10104. Mushroom promotion, research, and consumer information.
Sec. 10105. Food safety education initiatives.
Sec. 10106. Farmers' market promotion program.
Sec. 10107. Specialty crops market news allocation.
Sec. 10108. Expedited marketing order for Hass avocados for grades and
standards and other purposes.
Sec. 10109. Specialty crop block grants.
Subtitle B--Pest and Disease Management
Sec. 10201. Plant pest and disease management and disaster prevention.
Sec. 10202. National Clean Plant Network.
Sec. 10203. Plant protection.
Sec. 10204. Regulations to improve management and oversight of certain
regulated articles.
Sec. 10205. Pest and Disease Revolving Loan Fund.
Sec. 10206. Cooperative agreements relating to plant pest and disease
prevention activities.
Subtitle C--Organic Agriculture
Sec. 10301. National organic certification cost-share program.
Sec. 10302. Organic production and market data initiatives.
Sec. 10303. National Organic Program.
Subtitle D--Miscellaneous
Sec. 10401. National Honey Board.
Sec. 10402. Identification of honey.
Sec. 10403. Grant program to improve movement of specialty crops.
Sec. 10404. Market loss assistance for asparagus producers.
TITLE XI--LIVESTOCK
Sec. 11001. Livestock mandatory reporting.
Sec. 11002. Country of origin labeling.
Sec. 11003. Agricultural Fair Practices Act of 1967 definitions.
Sec. 11004. Annual report.
Sec. 11005. Production contracts.
Sec. 11006. Regulations.
Sec. 11007. Sense of Congress regarding pseudorabies eradication
program.
Sec. 11008. Sense of Congress regarding the cattle fever tick
eradication program.
Sec. 11009. National Sheep Industry Improvement Center.
Sec. 11010. Trichinae certification program.
Sec. 11011. Low pathogenic diseases.
Sec. 11012. Animal protection.
Sec. 11013. National Aquatic Animal Health Plan.
Sec. 11014. Study on bioenergy operations.
Sec. 11015. Interstate shipment of meat and poultry inspected by
Federal and State agencies for certain small
establishments.
Sec. 11016. Inspection and grading.
Sec. 11017. Food safety improvement.
TITLE XII--CROP INSURANCE AND DISASTER ASSISTANCE PROGRAMS
Subtitle A--Crop Insurance and Disaster Assistance
Sec. 12001. Definition of organic crop.
Sec. 12002. General powers.
Sec. 12003. Reduction in loss ratio.
Sec. 12004. Premiums adjustments.
Sec. 12005. Controlled business insurance.
Sec. 12006. Administrative fee.
Sec. 12007. Time for payment.
Sec. 12008. Catastrophic coverage reimbursement rate.
Sec. 12009. Grain sorghum price election.
Sec. 12010. Premium reduction authority.
Sec. 12011. Enterprise and whole farm units.
Sec. 12012. Payment of portion of premium for area revenue plans.
Sec. 12013. Denial of claims.
Sec. 12014. Settlement of crop insurance claims on farm-stored
production.
Sec. 12015. Time for reimbursement.
Sec. 12016. Reimbursement rate.
Sec. 12017. Renegotiation of Standard Reinsurance Agreement.
Sec. 12018. Change in due date for Corporation payments for
underwriting gains.
Sec. 12019. Malting barley.
Sec. 12020. Crop production on native sod.
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Sec. 12021. Information management.
Sec. 12022. Research and development.
Sec. 12023. Contracts for additional policies and studies.
Sec. 12024. Funding from insurance fund.
Sec. 12025. Pilot programs.
Sec. 12026. Risk management education for beginning farmers or
ranchers.
Sec. 12027. Coverage for aquaculture under noninsured crop assistance
program.
Sec. 12028. Increase in service fees for noninsured crop assistance
program.
Sec. 12029. Determination of certain sweet potato production.
Sec. 12030. Declining yield report.
Sec. 12031. Definition of basic unit.
Sec. 12032. Crop insurance mediation.
Sec. 12033. Supplemental agricultural disaster assistance.
Sec. 12034. Fisheries disaster assistance.
Subtitle B--Small Business Disaster Loan Program
Sec. 12051. Short title.
Sec. 12052. Definitions.
PART I--Disaster Planning and Response
Sec. 12061. Economic injury disaster loans to nonprofits.
Sec. 12062. Coordination of disaster assistance programs with FEMA.
Sec. 12063. Public awareness of disaster declaration and application
periods.
Sec. 12064. Consistency between administration regulations and standard
operating procedures.
Sec. 12065. Increasing collateral requirements.
Sec. 12066. Processing disaster loans.
Sec. 12067. Information tracking and follow-up system.
Sec. 12068. Increased deferment period.
Sec. 12069. Disaster processing redundancy.
Sec. 12070. Net earnings clauses prohibited.
Sec. 12071. Economic injury disaster loans in cases of ice storms and
blizzards.
Sec. 12072. Development and implementation of major disaster response
plan.
Sec. 12073. Disaster planning responsibilities.
Sec. 12074. Assignment of employees of the office of disaster
assistance and disaster cadre.
Sec. 12075. Comprehensive disaster response plan.
Sec. 12076. Plans to secure sufficient office space.
Sec. 12077. Applicants that have become a major source of employment
due to changed economic circumstances.
Sec. 12078. Disaster loan amounts.
Sec. 12079. Small business bonding threshold.
PART II--Disaster Lending
Sec. 12081. Eligibility for additional disaster assistance.
Sec. 12082. Additional economic injury disaster loan assistance.
Sec. 12083. Private disaster loans.
Sec. 12084. Immediate Disaster Assistance program.
Sec. 12085. Expedited disaster assistance loan program.
Sec. 12086. Gulf Coast Disaster Loan Refinancing Program.
PART III--Miscellaneous
Sec. 12091. Reports on disaster assistance.
TITLE XIII--COMMODITY FUTURES
Sec. 13001. Short title.
Subtitle A--General Provisions
Sec. 13101. Commission authority over agreements, contracts or
transactions in foreign currency.
Sec. 13102. Anti-fraud authority over principal-to-principal
transactions.
Sec. 13103. Criminal and civil penalties.
Sec. 13104. Authorization of appropriations.
Sec. 13105. Technical and conforming amendments.
Sec. 13106. Portfolio margining and security index issues.
Subtitle B--Significant Price Discovery Contracts on Exempt Commercial
Markets
Sec. 13201. Significant price discovery contracts.
Sec. 13202. Large trader reporting.
Sec. 13203. Conforming amendments.
Sec. 13204. Effective date.
TITLE XIV--MISCELLANEOUS
Subtitle A--Socially Disadvantaged Producers and Limited Resource
Producers
Sec. 14001. Improved program delivery by Department of Agriculture on
Indian reservations.
Sec. 14002. Foreclosure.
Sec. 14003. Receipt for service or denial of service from certain
Department of Agriculture agencies.
Sec. 14004. Outreach and technical assistance for socially
disadvantaged farmers or ranchers.
Sec. 14005. Accurate documentation in the Census of Agriculture and
certain studies.
Sec. 14006. Transparency and accountability for socially disadvantaged
farmers or ranchers.
Sec. 14007. Oversight and compliance.
Sec. 14008. Minority Farmer Advisory Committee.
Sec. 14009. National Appeals Division.
Sec. 14010. Report of civil rights complaints, resolutions, and
actions.
Sec. 14011. Sense of Congress relating to claims brought by socially
disadvantaged farmers or ranchers.
Sec. 14012. Determination on merits of Pigford claims.
Sec. 14013. Office of Advocacy and Outreach.
Subtitle B--Agricultural Security
Sec. 14101. Short title.
Sec. 14102. Definitions.
Chapter 1--Agricultural Security
Sec. 14111. Office of Homeland Security.
Sec. 14112. Agricultural biosecurity communication center.
Sec. 14113. Assistance to build local capacity in agricultural
biosecurity planning, preparedness, and response.
Chapter 2--Other Provisions
Sec. 14121. Research and development of agricultural countermeasures.
Sec. 14122. Agricultural biosecurity grant program.
Subtitle C--Other Miscellaneous Provisions
Sec. 14201. Cotton classification services.
Sec. 14202. Designation of States for cotton research and promotion.
Sec. 14203. Grants to reduce production of methamphetamines from
anhydrous ammonia.
Sec. 14204. Grants to improve supply, stability, safety, and training
of agricultural labor force.
Sec. 14205. Amendment to the Right to Financial Privacy Act of 1978.
Sec. 14206. Report on stored quantities of propane.
Sec. 14207. Prohibitions on dog fighting ventures.
Sec. 14208. Department of Agriculture conference transparency.
Sec. 14209. Federal Insecticide, Fungicide, and Rodenticide Act
amendments.
Sec. 14210. Importation of live dogs.
Sec. 14211. Permanent debarment from participation in Department of
Agriculture programs for fraud.
Sec. 14212. Prohibition on closure or relocation of county offices for
the Farm Service Agency.
Sec. 14213. USDA Graduate School.
Sec. 14214. Fines for violations of the Animal Welfare Act.
Sec. 14215. Definition of central filing system.
Sec. 14216. Consideration of proposed recommendations of study on use
of cats and dogs in Federal research.
Sec. 14217. Regional economic and infrastructure development.
Sec. 14218. Coordinator for chronically underserved rural areas.
Sec. 14219. Elimination of statute of limitations applicable to
collection of debt by administrative offset.
Sec. 14220. Availability of excess and surplus computers in rural
areas.
Sec. 14221. Repeal of section 3068 of the Water Resources Development
Act of 2007.
Sec. 14222. Domestic food assistance programs.
Sec. 14223. Technical correction.
TITLE XV--TRADE AND TAX PROVISIONS
Sec. 15001. Short title; etc.
Subtitle A--Supplemental Agricultural Disaster Assistance From the
Agricultural Disaster Relief Trust Fund
Sec. 15101. Supplemental agricultural disaster assistance.
Subtitle B--Revenue Provisions for Agriculture Programs
Sec. 15201. Customs User Fees.
Sec. 15202. Time for payment of corporate estimated taxes.
Subtitle C--Tax Provisions
PART I--Conservation
subpart a--land and species preservation provisions
Sec. 15301. Exclusion of conservation reserve program payments from
SECA tax for certain individuals.
Sec. 15302. Two-year extension of special rule encouraging
contributions of capital gain real property for
conservation purposes.
Sec. 15303. Deduction for endangered species recovery expenditures.
subpart b--timber provisions
Sec. 15311. Temporary reduction in rate of tax on qualified timber gain
of corporations.
Sec. 15312. Timber REIT modernization.
Sec. 15313. Mineral royalty income qualifying income for timber REITs.
Sec. 15314. Modification of taxable REIT subsidiary asset test for
timber REITs.
Sec. 15315. Safe harbor for timber property.
Sec. 15316. Qualified forestry conservation bonds.
PART II--Energy Provisions
subpart a--cellulosic biofuel
Sec. 15321. Credit for production of cellulosic biofuel.
Sec. 15322. Comprehensive study of biofuels.
subpart b--revenue provisions
Sec. 15331. Modification of alcohol credit.
Sec. 15332. Calculation of volume of alcohol for fuel credits.
Sec. 15333. Ethanol tariff extension.
Sec. 15334. Limitations on duty drawback on certain imported ethanol.
PART III--Agricultural Provisions
Sec. 15341. Increase in loan limits on agricultural bonds.
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Sec. 15342. Allowance of section 1031 treatment for exchanges involving
certain mutual ditch, reservoir, or irrigation company
stock.
Sec. 15343. Agricultural chemicals security credit.
Sec. 15344. 3-year depreciation for race horses that are 2-years old or
younger.
Sec. 15345. Temporary tax relief for Kiowa County, Kansas and
surrounding area.
Sec. 15346. Competitive certification awards modification authority.
PART IV--Other Revenue Provisions
Sec. 15351. Limitation on excess farm losses of certain taxpayers.
Sec. 15352. Modification to optional method of computing net earnings
from self-employment.
Sec. 15353. Information reporting for Commodity Credit Corporation
transactions.
PART V--Protection of Social Security
Sec. 15361. Protection of social security.
Subtitle D--Trade Provisions
PART I--Extension of Certain Trade Benefits
Sec. 15401. Short title.
Sec. 15402. Benefits for apparel and other textile articles.
Sec. 15403. Labor Ombudsman and technical assistance improvement and
compliance needs assessment and remediation program.
Sec. 15404. Petition process.
Sec. 15405. Conditions regarding enforcement of circumvention.
Sec. 15406. Presidential proclamation authority.
Sec. 15407. Regulations and procedures.
Sec. 15408. Extension of CBTPA.
Sec. 15409. Sense of Congress on interpretation of textile and apparel
provisions for Haiti.
Sec. 15410. Sense of Congress on trade mission to Haiti.
Sec. 15411. Sense of Congress on visa systems.
Sec. 15412. Effective date.
PART II--Miscellaneous Trade Provisions
Sec. 15421. Unused merchandise drawback.
Sec. 15422. Requirements relating to determination of transaction value
of imported merchandise.
SEC. 2. DEFINITION OF SECRETARY.
In this Act, the term ``Secretary'' means the Secretary of
Agriculture.
SEC. 3. EXPLANATORY STATEMENT.
The Joint Explanatory Statement submitted by the Committee
of Conference for the conference report to accompany H.R.
2419 of the 110th Congress (House Report 110-627) shall be
deemed to be part of the legislative history of this Act and
shall have the same effect with respect to the implementation
of this Act as it would have had with respect to the
implementation of H.R. 2419.
SEC. 4. REPEAL OF DUPLICATIVE ENACTMENT.
(a) In General.--The Act entitled ``An Act to provide for
the continuation of agricultural programs through fiscal year
2012, and for other purposes'' (H.R. 2419 of the 110th
Congress), and the amendments made by that Act, are repealed,
effective on the date of enactment of that Act.
(b) Effective Date.--Except as otherwise provided in this
Act, this Act and the amendments made by this Act shall take
effect on the earlier of--
(1) the date of enactment of this Act; or
(2) the date of the enactment of the Act entitled ``An Act
to provide for the continuation of agricultural programs
through fiscal year 2012, and for other purposes'' (H.R. 2419
of the 110th Congress).
TITLE I--COMMODITY PROGRAMS
SEC. 1001. DEFINITIONS.
In this title (other than subtitle C):
(1) Average crop revenue election payment.--The term
``average crop revenue election payment'' means a payment
made to producers on a farm under section 1105.
(2) Base acres.--
(A) In general.--The term ``base acres'', with respect to a
covered commodity on a farm, means the number of acres
established under section 1101 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7911) as in effect on
September 30, 2007, subject to any adjustment under section
1101 of this Act.
(B) Peanuts.--The term ``base acres for peanuts'' has the
meaning given the term in section 1301.
(3) Counter-cyclical payment.--The term ``counter-cyclical
payment'' means a payment made to producers on a farm under
section 1104.
(4) Covered commodity.--The term ``covered commodity''
means wheat, corn, grain sorghum, barley, oats, upland
cotton, long grain rice, medium grain rice, pulse crops,
soybeans, and other oilseeds.
(5) Direct payment.--The term ``direct payment'' means a
payment made to producers on a farm under section 1103.
(6) Effective price.--The term ``effective price'', with
respect to a covered commodity for a crop year, means the
price calculated by the Secretary under section 1104 to
determine whether counter-cyclical payments are required to
be made for that crop year.
(7) Extra long staple cotton.--The term ``extra long staple
cotton'' means cotton that--
(A) is produced from pure strain varieties of the
Barbadense species or any hybrid of the species, or other
similar types of extra long staple cotton, designated by the
Secretary, having characteristics needed for various end uses
for which United States upland cotton is not suitable and
grown in irrigated cotton-growing regions of the United
States designated by the Secretary or other areas designated
by the Secretary as suitable for the production of the
varieties or types; and
(B) is ginned on a roller-type gin or, if authorized by the
Secretary, ginned on another type gin for experimental
purposes.
(8) Loan commodity.--The term ``loan commodity'' means
wheat, corn, grain sorghum, barley, oats, upland cotton,
extra long staple cotton, long grain rice, medium grain rice,
soybeans, other oilseeds, graded wool, nongraded wool,
mohair, honey, dry peas, lentils, small chickpeas, and large
chickpeas.
(9) Medium grain rice.--The term ``medium grain rice''
includes short grain rice.
(10) Other oilseed.--The term ``other oilseed'' means a
crop of sunflower seed, rapeseed, canola, safflower,
flaxseed, mustard seed, crambe, sesame seed, or any oilseed
designated by the Secretary.
(11) Payment acres.--The term ``payment acres'' means, in
the case of direct payments and counter-cyclical payments--
(A) except as provided in subparagraph (B), 85 percent of
the base acres of a covered commodity on a farm on which
direct payments or counter-cyclical payments are made; and
(B) in the case of direct payments for each of the 2009
through 2011 crop years, 83.3 percent of the base acres for
the covered commodity on a farm on which direct payments are
made.
(12) Payment yield.--The term ``payment yield'' means the
yield established for direct payments and the yield
established for counter-cyclical payments under section 1102
of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 7912) as in effect on September 30, 2007, or under
section 1102 of this Act, for a farm for a covered commodity.
(13) Producer.--
(A) In general.--The term ``producer'' means an owner,
operator, landlord, tenant, or sharecropper that shares in
the risk of producing a crop and is entitled to share in the
crop available for marketing from the farm, or would have
shared had the crop been produced.
(B) Hybrid seed.--In determining whether a grower of hybrid
seed is a producer, the Secretary shall--
(i) not take into consideration the existence of a hybrid
seed contract; and
(ii) ensure that program requirements do not adversely
affect the ability of the grower to receive a payment under
this title.
(14) Pulse crop.--The term ``pulse crop'' means dry peas,
lentils, small chickpeas, and large chickpeas.
(15) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United States.
(16) Target price.--The term ``target price'' means the
price per bushel, pound, or hundredweight (or other
appropriate unit) of a covered commodity used to determine
the payment rate for counter-cyclical payments.
(17) United states.--The term ``United States'', when used
in a geographical sense, means all of the States.
(18) United states premium factor.--The term ``United
States Premium Factor'' means the percentage by which the
difference in the United States loan schedule premiums for
Strict Middling (SM) 1\1/8\-inch upland cotton and for
Middling (M) 1\3/32\-inch upland cotton exceeds the
difference in the applicable premiums for comparable
international qualities.
Subtitle A--Direct Payments and Counter-Cyclical Payments
SEC. 1101. BASE ACRES.
(a) Adjustment of Base Acres.--
(1) In general.--The Secretary shall provide for an
adjustment, as appropriate, in the base acres for covered
commodities for a farm whenever any of the following
circumstances occurs:
(A) A conservation reserve contract entered into under
section 1231 of the Food Security Act of 1985 (16 U.S.C.
3831) with respect to the farm expires or is voluntarily
terminated, or was terminated or expired during the period
beginning on October 1, 2007, and ending on the date of
enactment of this Act.
(B) Cropland is released from coverage under a conservation
reserve contract by the Secretary, or was released during the
period beginning on October 1, 2007, and ending on the date
of enactment of this Act.
(C) The producer has eligible pulse crop acreage, which
shall be determined in the same manner as eligible oilseed
acreage under section 1101(a)(2) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(D) The producer has eligible oilseed acreage as the result
of the Secretary designating additional oilseeds, which shall
be determined in the same manner as eligible oilseed acreage
under section 1101(a)(2) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(2) Special conservation reserve acreage payment rules.--
For the crop year in which a base acres adjustment under
subparagraph (A) or (B) of paragraph (1) is first made, the
owner of the farm shall elect to receive either direct
payments and counter-cyclical payments with respect to the
acreage added to the farm under this subsection or a
[[Page H4476]]
prorated payment under the conservation reserve contract, but
not both.
(b) Prevention of Excess Base Acres.--
(1) Required reduction.--If the sum of the base acres for a
farm, together with the acreage described in paragraph (2)
exceeds the actual cropland acreage of the farm, the
Secretary shall reduce the base acres for 1 or more covered
commodities for the farm or the base acres for peanuts for
the farm so that the sum of the base acres and acreage
described in paragraph (2) does not exceed the actual
cropland acreage of the farm.
(2) Other acreage.--For purposes of paragraph (1), the
Secretary shall include the following:
(A) Any base acres for peanuts for the farm.
(B) Any acreage on the farm enrolled in the conservation
reserve program or wetlands reserve program under chapter 1
of subtitle D of title XII of the Food Security Act of 1985
(16 U.S.C. 3830 et seq.).
(C) Any other acreage on the farm enrolled in a Federal
conservation program for which payments are made in exchange
for not producing an agricultural commodity on the acreage.
(D) Any eligible pulse crop acreage, which shall be
determined in the same manner as eligible oilseed acreage
under section 1101(a)(2) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(E) If the Secretary designates additional oilseeds, any
eligible oilseed acreage, which shall be determined in the
same manner as eligible oilseed acreage under section
1101(a)(2) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 7911(a)(2)).
(3) Selection of acres.--The Secretary shall give the owner
of the farm the opportunity to select the base acres for a
covered commodity or the base acres for peanuts for the farm
against which the reduction required by paragraph (1) will be
made.
(4) Exception for double-cropped acreage.--In applying
paragraph (1), the Secretary shall make an exception in the
case of double cropping, as determined by the Secretary.
(5) Coordinated application of requirements.--The Secretary
shall take into account section 1302(b) when applying the
requirements of this subsection.
(c) Reduction in Base Acres.--
(1) Reduction at option of owner.--
(A) In general.--The owner of a farm may reduce, at any
time, the base acres for any covered commodity for the farm.
(B) Effect of reduction.--A reduction under subparagraph
(A) shall be permanent and made in a manner prescribed by the
Secretary.
(2) Required action by secretary.--
(A) In general.--The Secretary shall proportionately reduce
base acres on a farm for covered commodities for land that
has been subdivided and developed for multiple residential
units or other nonfarming uses if the size of the tracts and
the density of the subdivision is such that the land is
unlikely to return to the previous agricultural use, unless
the producers on the farm demonstrate that the land--
(i) remains devoted to commercial agricultural production;
or
(ii) is likely to be returned to the previous agricultural
use.
(B) Requirement.--The Secretary shall establish procedures
to identify land described in subparagraph (A).
(3) Review and report.--Each year, to ensure, to the
maximum extent practicable, that payments are received only
by producers, the Secretary shall submit to Congress a report
that describes the results of the actions taken under
paragraph (2).
(d) Treatment of Farms With Limited Base Acres.--
(1) Prohibition on payments.--Except as provided in
paragraph (2) and notwithstanding any other provision of this
title, a producer on a farm may not receive direct payments,
counter-cyclical payments, or average crop revenue election
payments if the sum of the base acres of the farm is 10 acres
or less, as determined by the Secretary.
(2) Exceptions.--Paragraph (1) shall not apply to a farm
owned by--
(A) a socially disadvantaged farmer or rancher (as defined
in section 355(e) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2003(e)); or
(B) a limited resource farmer or rancher, as defined by the
Secretary.
(3) Data collection and publication.--The Secretary shall--
(A) collect and publish segregated data and survey
information about the farm profiles, utilization of land, and
crop production; and
(B) perform an evaluation on the supply and price of fruits
and vegetables based on the effects of suspension of base
acres under this section.
SEC. 1102. PAYMENT YIELDS.
(a) Establishment and Purpose.--For the purpose of making
direct payments and counter-cyclical payments under this
subtitle, the Secretary shall provide for the establishment
of a yield for each farm for any designated oilseed or
eligible pulse crop for which a payment yield was not
established under section 1102 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7912) in accordance with
this section.
(b) Payment Yields for Designated Oilseeds and Eligible
Pulse Crops.--
(1) Determination of average yield.--In the case of
designated oilseeds and eligible pulse crops, the Secretary
shall determine the average yield per planted acre for the
designated oilseed or pulse crop on a farm for the 1998
through 2001 crop years, excluding any crop year in which the
acreage planted to the designated oilseed or pulse crop was
zero.
(2) Adjustment for payment yield.--
(A) In general.--The payment yield for a farm for a
designated oilseed or eligible pulse crop shall be equal to
the product of the following:
(i) The average yield for the designated oilseed or pulse
crop determined under paragraph (1).
(ii) The ratio resulting from dividing the national average
yield for the designated oilseed or pulse crop for the 1981
through 1985 crops by the national average yield for the
designated oilseed or pulse crop for the 1998 through 2001
crops.
(B) No national average yield information available.--To
the extent that national average yield information for a
designated oilseed or pulse crop is not available, the
Secretary shall use such information as the Secretary
determines to be fair and equitable to establish a national
average yield under this section.
(3) Use of partial county average yield.--If the yield per
planted acre for a crop of a designated oilseed or pulse crop
for a farm for any of the 1998 through 2001 crop years was
less than 75 percent of the county yield for that designated
oilseed or pulse crop, the Secretary shall assign a yield for
that crop year equal to 75 percent of the county yield for
the purpose of determining the average under paragraph (1).
(4) No historic yield data available.--In the case of
establishing yields for designated oilseeds and eligible
pulse crops, if historic yield data is not available, the
Secretary shall use the ratio for dry peas calculated under
paragraph (2)(A)(ii) in determining the yields for designated
oilseeds and eligible pulse crops, as determined to be fair
and equitable by the Secretary.
SEC. 1103. AVAILABILITY OF DIRECT PAYMENTS.
(a) Payment Required.--For each of the 2008 through 2012
crop years of each covered commodity (other than pulse
crops), the Secretary shall make direct payments to producers
on farms for which base acres and payment yields are
established.
(b) Payment Rate.--Except as provided in section 1105, the
payment rates used to make direct payments with respect to
covered commodities for a crop year shall be as follows:
(1) Wheat, $0.52 per bushel.
(2) Corn, $0.28 per bushel.
(3) Grain sorghum, $0.35 per bushel.
(4) Barley, $0.24 per bushel.
(5) Oats, $0.024 per bushel.
(6) Upland cotton, $0.0667 per pound.
(7) Long grain rice, $2.35 per hundredweight.
(8) Medium grain rice, $2.35 per hundredweight.
(9) Soybeans, $0.44 per bushel.
(10) Other oilseeds, $0.80 per hundredweight.
(c) Payment Amount.--The amount of the direct payment to be
paid to the producers on a farm for a covered commodity for a
crop year shall be equal to the product of the following:
(1) The payment rate specified in subsection (b).
(2) The payment acres of the covered commodity on the farm.
(3) The payment yield for the covered commodity for the
farm.
(d) Time for Payment.--
(1) In general.--Except as provided in paragraph (2), in
the case of each of the 2008 through 2012 crop years, the
Secretary may not make direct payments before October 1 of
the calendar year in which the crop of the covered commodity
is harvested.
(2) Advance payments.--
(A) Option.--
(i) In general.--At the option of the producers on a farm,
the Secretary shall pay in advance up to 22 percent of the
direct payment for a covered commodity for any of the 2008
through 2011 crop years to the producers on a farm.
(ii) 2008 crop year.--If the producers on a farm elect to
receive advance direct payments under clause (i) for a
covered commodity for the 2008 crop year, as soon as
practicable after the election, the Secretary shall make the
advance direct payment to the producers on the farm.
(B) Month.--
(i) Selection.--Subject to clauses (ii) and (iii), the
producers on a farm shall select the month during which the
advance payment for a crop year will be made.
(ii) Options.--The month selected may be any month during
the period--
(I) beginning on December 1 of the calendar year before the
calendar year in which the crop of the covered commodity is
harvested; and
(II) ending during the month within which the direct
payment would otherwise be made.
(iii) Change.--The producers on a farm may change the
selected month for a subsequent advance payment by providing
advance notice to the Secretary.
(3) Repayment of advance payments.--If a producer on a farm
that receives an advance direct payment for a crop year
ceases to be a producer on that farm, or the extent to which
the producer shares in the risk of producing a crop changes,
before the date the remainder of the direct payment is made,
the producer shall be responsible for repaying
[[Page H4477]]
the Secretary the applicable amount of the advance payment,
as determined by the Secretary.
SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.
(a) Payment Required.--Except as provided in section 1105,
for each of the 2008 through 2012 crop years for each covered
commodity, the Secretary shall make counter-cyclical payments
to producers on farms for which payment yields and base acres
are established with respect to the covered commodity if the
Secretary determines that the effective price for the covered
commodity is less than the target price for the covered
commodity.
(b) Effective Price.--
(1) Covered commodities other than rice.--Except as
provided in paragraph (2), for purposes of subsection (a),
the effective price for a covered commodity is equal to the
sum of the following:
(A) The higher of the following:
(i) The national average market price received by producers
during the 12-month marketing year for the covered commodity,
as determined by the Secretary.
(ii) The national average loan rate for a marketing
assistance loan for the covered commodity in effect for the
applicable period under subtitle B.
(B) The payment rate in effect for the covered commodity
under section 1103 for the purpose of making direct payments
with respect to the covered commodity.
(2) Rice.--In the case of long grain rice and medium grain
rice, for purposes of subsection (a), the effective price for
each type or class of rice is equal to the sum of the
following:
(A) The higher of the following:
(i) The national average market price received by producers
during the 12-month marketing year for the type or class of
rice, as determined by the Secretary.
(ii) The national average loan rate for a marketing
assistance loan for the type or class of rice in effect for
the applicable period under subtitle B.
(B) The payment rate in effect for the type or class of
rice under section 1103 for the purpose of making direct
payments with respect to the type or class of rice.
(c) Target Price.--
(1) 2008 crop year.--For purposes of the 2008 crop year,
the target prices for covered commodities shall be as
follows:
(A) Wheat, $3.92 per bushel.
(B) Corn, $2.63 per bushel.
(C) Grain sorghum, $2.57 per bushel.
(D) Barley, $2.24 per bushel.
(E) Oats, $1.44 per bushel.
(F) Upland cotton, $0.7125 per pound.
(G) Long grain rice, $10.50 per hundredweight.
(H) Medium grain rice, $10.50 per hundredweight.
(I) Soybeans, $5.80 per bushel.
(J) Other oilseeds, $10.10 per hundredweight.
(2) 2009 crop year.--For purposes of the 2009 crop year,
the target prices for covered commodities shall be as
follows:
(A) Wheat, $3.92 per bushel.
(B) Corn, $2.63 per bushel.
(C) Grain sorghum, $2.57 per bushel.
(D) Barley, $2.24 per bushel.
(E) Oats, $1.44 per bushel.
(F) Upland cotton, $0.7125 per pound.
(G) Long grain rice, $10.50 per hundredweight.
(H) Medium grain rice, $10.50 per hundredweight.
(I) Soybeans, $5.80 per bushel.
(J) Other oilseeds, $10.10 per hundredweight.
(K) Dry peas, $8.32 per hundredweight.
(L) Lentils, $12.81 per hundredweight.
(M) Small chickpeas, $10.36 per hundredweight.
(N) Large chickpeas, $12.81 per hundredweight.
(3) Subsequent crop years.--For purposes of each of the
2010 through 2012 crop years, the target prices for covered
commodities shall be as follows:
(A) Wheat, $4.17 per bushel.
(B) Corn, $2.63 per bushel.
(C) Grain sorghum, $2.63 per bushel.
(D) Barley, $2.63 per bushel.
(E) Oats, $1.79 per bushel.
(F) Upland cotton, $0.7125 per pound.
(G) Long grain rice, $10.50 per hundredweight.
(H) Medium grain rice, $10.50 per hundredweight.
(I) Soybeans, $6.00 per bushel.
(J) Other oilseeds, $12.68 per hundredweight.
(K) Dry peas, $8.32 per hundredweight.
(L) Lentils, $12.81 per hundredweight.
(M) Small chickpeas, $10.36 per hundredweight.
(N) Large chickpeas, $12.81 per hundredweight.
(d) Payment Rate.--The payment rate used to make counter-
cyclical payments with respect to a covered commodity for a
crop year shall be equal to the difference between--
(1) the target price for the covered commodity; and
(2) the effective price determined under subsection (b) for
the covered commodity.
(e) Payment Amount.--If counter-cyclical payments are
required to be paid under this section for any of the 2008
through 2012 crop years of a covered commodity, the amount of
the counter-cyclical payment to be paid to the producers on a
farm for that crop year shall be equal to the product of the
following:
(1) The payment rate specified in subsection (d).
(2) The payment acres of the covered commodity on the farm.
(3) The payment yield for the covered commodity for the
farm.
(f) Time for Payments.--
(1) General rule.--Except as provided in paragraph (2), if
the Secretary determines under subsection (a) that counter-
cyclical payments are required to be made under this section
for the crop of a covered commodity, beginning October 1, or
as soon as practicable thereafter, after the end of the
marketing year for the covered commodity, the Secretary shall
make the counter-cyclical payments for the crop.
(2) Availability of partial payments.--
(A) In general.--If, before the end of the 12-month
marketing year for a covered commodity, the Secretary
estimates that counter-cyclical payments will be required for
the crop of the covered commodity, the Secretary shall give
producers on a farm the option to receive partial payments of
the counter-cyclical payment projected to be made for that
crop of the covered commodity.
(B) Election.--
(i) In general.--The Secretary shall allow producers on a
farm to make an election to receive partial payments for a
covered commodity under subparagraph (A) at any time but not
later than 60 days prior to the end of the marketing year for
that covered commodity.
(ii) Date of issuance.--The Secretary shall issue the
partial payment after the date of an announcement by the
Secretary but not later than 30 days prior to the end of the
marketing year.
(3) Time for partial payments.--When the Secretary makes
partial payments for a covered commodity for any of the 2008
through 2010 crop years--
(A) the first partial payment shall be made after
completion of the first 180 days of the marketing year for
the covered commodity; and
(B) the final partial payment shall be made beginning
October 1, or as soon as practicable thereafter, after the
end of the applicable marketing year for the covered
commodity.
(4) Amount of partial payment.--
(A) First partial payment.--For each of the 2008 through
2010 crops of a covered commodity, the first partial payment
under paragraph (3) to the producers on a farm may not exceed
40 percent of the projected counter-cyclical payment for the
covered commodity for the crop year, as determined by the
Secretary.
(B) Final payment.--The final payment for a covered
commodity for a crop year shall be equal to the difference
between--
(i) the actual counter-cyclical payment to be made to the
producers for the covered commodity for that crop year; and
(ii) the amount of the partial payment made to the
producers under subparagraph (A).
(5) Repayment.--The producers on a farm that receive a
partial payment under this subsection for a crop year shall
repay to the Secretary the amount, if any, by which the total
of the partial payments exceed the actual counter-cyclical
payment to be made for the covered commodity for that crop
year.
SEC. 1105. AVERAGE CROP REVENUE ELECTION PROGRAM.
(a) Availability and Election of Alternative Approach.--
(1) Availability of average crop revenue election
payments.--As an alternative to receiving counter-cyclical
payments under section 1104 or 1304 and in exchange for a 20-
percent reduction in direct payments under section 1103 or
1303 and a 30-percent reduction in marketing assistance loan
rates under section 1202 or 1307, with respect to all covered
commodities and peanuts on a farm, during each of the 2009,
2010, 2011, and 2012 crop years, the Secretary shall give the
producers on the farm an opportunity to make an irrevocable
election to instead receive average crop revenue election
(referred to in this section as ``ACRE'') payments under this
section for the initial crop year for which the election is
made through the 2012 crop year.
(2) Limitation.--
(A) In general.--The total number of planted acres for
which the producers on a farm may receive ACRE payments under
this section may not exceed the total base acreage for all
covered commodities and peanuts on the farm.
(B) Election.--If the total number of planted acres to all
covered commodities and peanuts of the producers on a farm
exceeds the total base acreage of the farm, the producers on
the farm may choose which planted acres to enroll in the
program under this section.
(3) Election; time for election.--
(A) In general.--The Secretary shall provide notice to
producers regarding the opportunity to make each of the
elections described in paragraph (1).
(B) Notice requirements.--The notice shall include--
(i) notice of the opportunity of the producers on a farm to
make the election; and
(ii) information regarding the manner in which the election
must be made and the time periods and manner in which notice
of the election must be submitted to the Secretary.
[[Page H4478]]
(4) Election deadline.--Within the time period and in the
manner prescribed pursuant to paragraph (3), all of the
producers on a farm shall submit to the Secretary notice of
an election made under paragraph (1).
(5) Effect of failure to make election.--If all of the
producers on a farm fail to make an election under paragraph
(1), make different elections under paragraph (1), or fail to
timely notify the Secretary of the election made, as required
by paragraph (4), all of the producers on the farm shall be
deemed to have made the election to receive counter-cyclical
payments under section 1104 or 1304 for all covered
commodities and peanuts on the farm, and to otherwise not
have made the election described in paragraph (1), for the
applicable crop years.
(b) Payments Required.--
(1) In general.--In the case of producers on a farm who
make an election under subsection (a) to receive ACRE
payments for any of the 2009 through 2012 crop years for all
covered commodities and peanuts, the Secretary shall make
ACRE payments available to the producers on a farm in
accordance with this subsection.
(2) ACRE payment.--
(A) In general.--Subject to paragraph (3), in the case of
producers on a farm described in paragraph (1), the Secretary
shall make ACRE payments available to the producers on a farm
for each crop year if--
(i) the actual State revenue for the crop year for the
covered commodity or peanuts in the State determined under
subsection (c); is less than
(ii) the ACRE program guarantee for the crop year for the
covered commodity or peanuts in the State determined under
subsection (d).
(B) Individual loss.--The Secretary shall make ACRE
payments available to the producers on a farm in a State for
a crop year only if (as determined by the Secretary)--
(i) the actual farm revenue for the crop year for the
covered commodity or peanuts, as determined under subsection
(e); is less than
(ii) the farm ACRE benchmark revenue for the crop year for
the covered commodity or peanuts, as determined under
subsection (f).
(3) Time for payments.--In the case of each of the 2009
through 2012 crop years, the Secretary shall make ACRE
payments beginning October 1, or as soon as practicable
thereafter, after the end of the applicable marketing year
for the covered commodity or peanuts.
(c) Actual State Revenue.--
(1) In general.--For purposes of subsection (b)(2)(A), the
amount of the actual State revenue for a crop year of a
covered commodity or peanuts shall equal the product obtained
by multiplying--
(A) the actual State yield for each planted acre for the
crop year for the covered commodity or peanuts determined
under paragraph (2); and
(B) the national average market price for the crop year for
the covered commodity or peanuts determined under paragraph
(3).
(2) Actual state yield.--For purposes of paragraph (1)(A),
the actual State yield for each planted acre for a crop year
for a covered commodity or peanuts in a State shall equal (as
determined by the Secretary)--
(A) the quantity of the covered commodity or peanuts that
is produced in the State during the crop year; divided by
(B) the number of acres that are planted to the covered
commodity or peanuts in the State during the crop year.
(3) National average market price.--For purposes of
paragraph (1)(B), the national average market price for a
crop year for a covered commodity or peanuts in a State shall
equal the greater of--
(A) the national average market price received by producers
during the 12-month marketing year for the covered commodity
or peanuts, as determined by the Secretary; or
(B) the marketing assistance loan rate for the covered
commodity or peanuts under section 1202 or 1307, as reduced
under subsection (a)(1).
(d) ACRE Program Guarantee.--
(1) Amount.--
(A) In general.--For purposes of subsection (b)(2)(A) and
subject to subparagraph (B), the ACRE program guarantee for a
crop year for a covered commodity or peanuts in a State shall
equal 90 percent of the product obtained by multiplying--
(i) the benchmark State yield for each planted acre for the
crop year for the covered commodity or peanuts in a State
determined under paragraph (2); and
(ii) the ACRE program guarantee price for the crop year for
the covered commodity or peanuts determined under paragraph
(3).
(B) Minimum and maximum guarantee.--In the case of each of
the 2010 through 2012 crop years, the ACRE program guarantee
for a crop year for a covered commodity or peanuts under
subparagraph (A) shall not decrease or increase more than 10
percent from the guarantee for the preceding crop year.
(2) Benchmark state yield.--
(A) In general.--For purposes of paragraph (1)(A)(i),
subject to subparagraph (B), the benchmark State yield for
each planted acre for a crop year for a covered commodity or
peanuts in a State shall equal the average yield per planted
acre for the covered commodity or peanuts in the State for
the most recent 5 crop year yields, excluding each of the
crop years with the highest and lowest yields, using National
Agricultural Statistics Service data.
(B) Assigned yield.--If the Secretary cannot establish the
benchmark State yield for each planted acre for a crop year
for a covered commodity or peanuts in a State in accordance
with subparagraph (A) or if the yield determined under
subparagraph (A) is an unrepresentative average yield for the
State (as determined by the Secretary), the Secretary shall
assign a benchmark State yield for each planted acre for the
crop year for the covered commodity or peanuts in the State
on the basis of--
(i) previous average yields for a period of 5 crop years,
excluding each of the crop years with the highest and lowest
yields; or
(ii) benchmark State yields for planted acres for the crop
year for the covered commodity or peanuts in similar States.
(3) ACRE program guarantee price.--For purposes of
paragraph (1)(A)(ii), the ACRE program guarantee price for a
crop year for a covered commodity or peanuts in a State shall
be the simple average of the national average market price
received by producers of the covered commodity or peanuts for
the most recent 2 crop years, as determined by the Secretary.
(4) States with irrigated and nonirrigated land.--In the
case of a State in which at least 25 percent of the acreage
planted to a covered commodity or peanuts in the State is
irrigated and at least 25 percent of the acreage planted to
the covered commodity or peanuts in the State is not
irrigated, the Secretary shall calculate a separate ACRE
program guarantee for the irrigated and nonirrigated areas of
the State for the covered commodity or peanuts.
(e) Actual Farm Revenue.--For purposes of subsection
(b)(2)(B)(i), the amount of the actual farm revenue for a
crop year for a covered commodity or peanuts shall equal the
amount determined by multiplying--
(1) the actual yield for the covered commodity or peanuts
of the producers on the farm; and
(2) the national average market price for the crop year for
the covered commodity or peanuts determined under subsection
(c)(3).
(f) Farm ACRE Benchmark Revenue.--For purposes of
subsection (b)(2)(B)(ii), the farm ACRE benchmark revenue for
the crop year for a covered commodity or peanuts shall equal
the sum obtained by adding--
(1) the amount determined by multiplying--
(A) the average yield per planted acre for the covered
commodity or peanuts of the producers on the farm for the
most recent 5 crop years, excluding each of the crop years
with the highest and lowest yields; and
(B) the ACRE program guarantee price for the applicable
crop year for the covered commodity or peanuts in a State
determined under subsection (d)(3); and
(2) the amount of the per acre crop insurance premium
required to be paid by the producers on the farm for the
applicable crop year for the covered commodity or peanuts on
the farm.
(g) Payment Amount.--If ACRE payments are required to be
paid for any of the 2009 through 2012 crop years of a covered
commodity or peanuts under this section, the amount of the
ACRE payment to be paid to the producers on the farm for the
crop year under this section shall be equal to the product
obtained by multiplying--
(1) the lesser of--
(A) the difference between--
(i) the ACRE program guarantee for the crop year for the
covered commodity or peanuts in the State determined under
subsection (d); and
(ii) the actual State revenue from the crop year for the
covered commodity or peanuts in the State determined under
subsection (c); and
(B) 25 percent of the ACRE program guarantee for the crop
year for the covered commodity or peanuts in the State
determined under subsection (d);
(2)(A) for each of the 2009 through 2011 crop years, 83.3
percent of the acreage planted or considered planted to the
covered commodity or peanuts for harvest on the farm in the
crop year; and
(B) for the 2012 crop year, 85 percent of the acreage
planted or considered planted to the covered commodity or
peanuts for harvest on the farm in the crop year; and
(3) the quotient obtained by dividing--
(A) the average yield per planted acre for the covered
commodity or peanuts of the producers on the farm for the
most recent 5 crop years, excluding each of the crop years
with the highest and lowest yields; by
(B) the benchmark State yield for the crop year, as
determined under subsection (d)(2).
SEC. 1106. PRODUCER AGREEMENT REQUIRED AS CONDITION OF
PROVISION OF PAYMENTS.
(a) Compliance With Certain Requirements.--
(1) Requirements.--Before the producers on a farm may
receive direct payments, counter-cyclical payments, or
average crop revenue election payments with respect to the
farm, the producers shall agree, during the crop year for
which the payments are made and in exchange for the
payments--
(A) to comply with applicable conservation requirements
under subtitle B of title XII of the Food Security Act of
1985 (16 U.S.C. 3811 et seq.);
(B) to comply with applicable wetland protection
requirements under subtitle C of title XII of that Act (16
U.S.C. 3821 et seq.);
(C) to comply with the planting flexibility requirements of
section 1107;
[[Page H4479]]
(D) to use the land on the farm, in a quantity equal to the
attributable base acres for the farm and any base acres for
peanuts for the farm under subtitle C, for an agricultural or
conserving use, and not for a nonagricultural commercial,
industrial, or residential use, as determined by the
Secretary; and
(E) to effectively control noxious weeds and otherwise
maintain the land in accordance with sound agricultural
practices, as determined by the Secretary, if the
agricultural or conserving use involves the noncultivation of
any portion of the land referred to in subparagraph (D).
(2) Compliance.--The Secretary may issue such rules as the
Secretary considers necessary to ensure producer compliance
with the requirements of paragraph (1).
(3) Modification.--At the request of the transferee or
owner, the Secretary may modify the requirements of this
subsection if the modifications are consistent with the
objectives of this subsection, as determined by the
Secretary.
(b) Transfer or Change of Interest in Farm.--
(1) Termination.--
(A) In general.--Except as provided in paragraph (2), a
transfer of (or change in) the interest of the producers on a
farm in base acres for which direct payments or counter-
cyclical payments are made, or on which average crop revenue
election payments are based, shall result in the termination
of the direct payments, counter-cyclical payments, or average
crop revenue election payments to the extent the payments are
made or based on the base acres, unless the transferee or
owner of the acreage agrees to assume all obligations under
subsection (a).
(B) Effective date.--The termination shall take effect on
the date determined by the Secretary.
(2) Exception.--If a producer entitled to a direct payment,
counter-cyclical payment, or average crop revenue election
payment dies, becomes incompetent, or is otherwise unable to
receive the payment, the Secretary shall make the payment, in
accordance with rules issued by the Secretary.
(c) Reports.--
(1) Acreage reports.--As a condition on the receipt of any
benefits under this subtitle or subtitle B, the Secretary
shall require producers on a farm to submit to the Secretary
annual acreage reports with respect to all cropland on the
farm.
(2) Production reports.--As a condition on the receipt of
any benefits under this subtitle or subtitle B, the Secretary
shall require producers on a farm that receive payments under
section 1105 to submit to the Secretary annual production
reports with respect to all covered commodities and peanuts
produced on the farm.
(3) Penalties.--No penalty with respect to benefits under
this subtitle or subtitle B shall be assessed against the
producers on a farm for an inaccurate acreage or production
report unless the producers on the farm knowingly and
willfully falsified the acreage or production report.
(d) Tenants and Sharecroppers.--In carrying out this
subtitle, the Secretary shall provide adequate safeguards to
protect the interests of tenants and sharecroppers.
(e) Sharing of Payments.--The Secretary shall provide for
the sharing of direct payments, counter-cyclical payments, or
average crop revenue election payments among the producers on
a farm on a fair and equitable basis.
SEC. 1107. PLANTING FLEXIBILITY.
(a) Permitted Crops.--Subject to subsection (b), any
commodity or crop may be planted on base acres on a farm.
(b) Limitations Regarding Certain Commodities.--
(1) General limitation.--The planting of an agricultural
commodity specified in paragraph (3) shall be prohibited on
base acres unless the commodity, if planted, is destroyed
before harvest.
(2) Treatment of trees and other perennials.--The planting
of an agricultural commodity specified in paragraph (3) that
is produced on a tree or other perennial plant shall be
prohibited on base acres.
(3) Covered agricultural commodities.--Paragraphs (1) and
(2) apply to the following agricultural commodities:
(A) Fruits.
(B) Vegetables (other than mung beans and pulse crops).
(C) Wild rice.
(c) Exceptions.--Paragraphs (1) and (2) of subsection (b)
shall not limit the planting of an agricultural commodity
specified in paragraph (3) of that subsection--
(1) in any region in which there is a history of double-
cropping of covered commodities with agricultural commodities
specified in subsection (b)(3), as determined by the
Secretary, in which case the double-cropping shall be
permitted;
(2) on a farm that the Secretary determines has a history
of planting agricultural commodities specified in subsection
(b)(3) on base acres, except that direct payments and
counter-cyclical payments shall be reduced by an acre for
each acre planted to such an agricultural commodity; or
(3) by the producers on a farm that the Secretary
determines has an established planting history of a specific
agricultural commodity specified in subsection (b)(3), except
that--
(A) the quantity planted may not exceed the average annual
planting history of such agricultural commodity by the
producers on the farm in the 1991 through 1995 or 1998
through 2001 crop years (excluding any crop year in which no
plantings were made), as determined by the Secretary; and
(B) direct payments and counter-cyclical payments shall be
reduced by an acre for each acre planted to such agricultural
commodity.
(d) Planting Transferability Pilot Project.--
(1) Pilot project authorized.--Notwithstanding paragraphs
(1) and (2) of subsection (b) and in addition to the
exceptions provided in subsection (c), the Secretary shall
carry out a pilot project to permit the planting of
cucumbers, green peas, lima beans, pumpkins, snap beans,
sweet corn, and tomatoes grown for processing on base acres
during each of the 2009 through 2012 crop years.
(2) Pilot project states and acres.--The number of base
acres eligible during each crop year for the pilot project
under paragraph (1) shall be--
(A) 9,000 acres in the State of Illinois;
(B) 9,000 acres in the State of Indiana;
(C) 1,000 acres in the State of Iowa;
(D) 9,000 acres in the State of Michigan;
(E) 34,000 acres in the State of Minnesota;
(F) 4,000 acres in the State of Ohio; and
(G) 9,000 acres in the State of Wisconsin.
(3) Contract and management requirements.--To be eligible
for selection to participate in the pilot project, the
producers on a farm shall--
(A) demonstrate to the Secretary that the producers on the
farm have entered into a contract to produce a crop of a
commodity specified in paragraph (1) for processing;
(B) agree to produce the crop as part of a program of crop
rotation on the farm to achieve agronomic and pest and
disease management benefits; and
(C) provide evidence of the disposition of the crop.
(4) Temporary reduction in base acres.--The base acres on a
farm for a crop year shall be reduced by an acre for each
acre planted under the pilot program.
(5) Duration of reductions.--The reduction in the base
acres of a farm for a crop year under paragraph (4) shall
expire at the end of the crop year.
(6) Recalculation of base acres.--
(A) In general.--If the Secretary recalculates base acres
for a farm while the farm is included in the pilot project,
the planting and production of a crop of a commodity
specified in paragraph (1) on base acres for which a
temporary reduction was made under this section shall be
considered to be the same as the planting and production of a
covered commodity.
(B) Prohibition.--Nothing in this paragraph provides
authority for the Secretary to recalculate base acres for a
farm.
(7) Pilot impact evaluation.--
(A) In general.--The Secretary shall periodically evaluate
the pilot project conducted under this subsection to
determine the effects of the pilot project on the supply and
price of--
(i) fresh fruits and vegetables; and
(ii) fruits and vegetables for processing.
(B) Determination.--An evaluation under subparagraph (A)
shall include a determination as to whether--
(i) producers of fresh fruits and vegetables are being
negatively impacted; and
(ii) existing production capacities are being supplanted.
(C) Report.--As soon as practicable after conducting an
evaluation under subparagraph (A), the Secretary shall submit
to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that describes the
results of the evaluation.
SEC. 1108. SPECIAL RULE FOR LONG GRAIN AND MEDIUM GRAIN RICE.
(a) Calculation Method.--Subject to subsections (b) and
(c), for the purposes of determining the amount of the
counter-cyclical payments to be paid to the producers on a
farm for long grain rice and medium grain rice under section
1104, the base acres of rice on the farm shall be apportioned
using the 4-year average of the percentages of acreage
planted in the applicable State to long grain rice and medium
grain rice during the 2003 through 2006 crop years, as
determined by the Secretary.
(b) Producer Election.--As an alternative to the
calculation method described in subsection (a), the Secretary
shall provide producers on a farm the opportunity to elect to
apportion rice base acres on the farm using the 4-year
average of--
(1) the percentages of acreage planted on the farm to long
grain rice and medium grain rice during the 2003 through 2006
crop years;
(2) the percentages of any acreage on the farm that the
producers were prevented from planting to long grain rice and
medium grain rice during the 2003 through 2006 crop years
because of drought, flood, other natural disaster, or other
condition beyond the control of the producers, as determined
by the Secretary; and
(3) in the case of a crop year for which a producer on a
farm elected not to plant to long grain and medium grain rice
during the 2003 through 2006 crop years, the percentages of
acreage planted in the applicable State to long grain rice
and medium grain rice, as determined by the Secretary.
(c) Limitation.--In carrying out this section, the
Secretary shall use the same total base acres, payment acres,
and payment yields established with respect to rice under
sections 1101 and 1102 of the Farm Security
[[Page H4480]]
and Rural Investment Act of 2002 (7 U.S.C. 7911, 7912), as in
effect on September 30, 2007, subject to any adjustment under
section 1101 of this Act.
SEC. 1109. PERIOD OF EFFECTIVENESS.
This subtitle shall be effective beginning with the 2008
crop year of each covered commodity through the 2012 crop
year.
Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments
SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE
LOANS FOR LOAN COMMODITIES.
(a) Nonrecourse Loans Available.--
(1) Availability.--For each of the 2008 through 2012 crops
of each loan commodity, the Secretary shall make available to
producers on a farm nonrecourse marketing assistance loans
for loan commodities produced on the farm.
(2) Terms and conditions.--The marketing assistance loans
shall be made under terms and conditions that are prescribed
by the Secretary and at the loan rate established under
section 1202 for the loan commodity.
(b) Eligible Production.--The producers on a farm shall be
eligible for a marketing assistance loan under subsection (a)
for any quantity of a loan commodity produced on the farm.
(c) Compliance With Conservation and Wetlands
Requirements.--As a condition of the receipt of a marketing
assistance loan under subsection (a), the producer shall
comply with applicable conservation requirements under
subtitle B of title XII of the Food Security Act of 1985 (16
U.S.C. 3811 et seq.) and applicable wetland protection
requirements under subtitle C of title XII of that Act (16
U.S.C. 3821 et seq.) during the term of the loan.
SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE
LOANS.
(a) 2008 Crop Year.--For purposes of the 2008 crop year,
the loan rate for a marketing assistance loan under section
1201 for a loan commodity shall be equal to the following:
(1) In the case of wheat, $2.75 per bushel.
(2) In the case of corn, $1.95 per bushel.
(3) In the case of grain sorghum, $1.95 per bushel.
(4) In the case of barley, $1.85 per bushel.
(5) In the case of oats, $1.33 per bushel.
(6) In the case of base quality of upland cotton, $0.52 per
pound.
(7) In the case of extra long staple cotton, $0.7977 per
pound.
(8) In the case of long grain rice, $6.50 per
hundredweight.
(9) In the case of medium grain rice, $6.50 per
hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $9.30 per hundredweight
for each of the following kinds of oilseeds:
(A) Sunflower seed.
(B) Rapeseed.
(C) Canola.
(D) Safflower.
(E) Flaxseed.
(F) Mustard seed.
(G) Crambe.
(H) Sesame seed.
(I) Other oilseeds designated by the Secretary.
(12) In the case of dry peas, $6.22 per hundredweight.
(13) In the case of lentils, $11.72 per hundredweight.
(14) In the case of small chickpeas, $7.43 per
hundredweight.
(15) In the case of graded wool, $1.00 per pound.
(16) In the case of nongraded wool, $0.40 per pound.
(17) In the case of mohair, $4.20 per pound.
(18) In the case of honey, $0.60 per pound.
(b) 2009 Crop Year.--Except as provided in section 1105,
for purposes of the 2009 crop year, the loan rate for a
marketing assistance loan under section 1201 for a loan
commodity shall be equal to the following:
(1) In the case of wheat, $2.75 per bushel.
(2) In the case of corn, $1.95 per bushel.
(3) In the case of grain sorghum, $1.95 per bushel.
(4) In the case of barley, $1.85 per bushel.
(5) In the case of oats, $1.33 per bushel.
(6) In the case of base quality of upland cotton, $0.52 per
pound.
(7) In the case of extra long staple cotton, $0.7977 per
pound.
(8) In the case of long grain rice, $6.50 per
hundredweight.
(9) In the case of medium grain rice, $6.50 per
hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $9.30 per hundredweight
for each of the following kinds of oilseeds:
(A) Sunflower seed.
(B) Rapeseed.
(C) Canola.
(D) Safflower.
(E) Flaxseed.
(F) Mustard seed.
(G) Crambe.
(H) Sesame seed.
(I) Other oilseeds designated by the Secretary.
(12) In the case of dry peas, $5.40 per hundredweight.
(13) In the case of lentils, $11.28 per hundredweight.
(14) In the case of small chickpeas, $7.43 per
hundredweight.
(15) In the case of large chickpeas, $11.28 per
hundredweight.
(16) In the case of graded wool, $1.00 per pound.
(17) In the case of nongraded wool, $0.40 per pound.
(18) In the case of mohair, $4.20 per pound.
(19) In the case of honey, $0.60 per pound.
(c) 2010 Through 2012 Crop Years.--Except as provided in
section 1105, for purposes of each of the 2010 through 2012
crop years, the loan rate for a marketing assistance loan
under section 1201 for a loan commodity shall be equal to the
following:
(1) In the case of wheat, $2.94 per bushel.
(2) In the case of corn, $1.95 per bushel.
(3) In the case of grain sorghum, $1.95 per bushel.
(4) In the case of barley, $1.95 per bushel.
(5) In the case of oats, $1.39 per bushel.
(6) In the case of base quality of upland cotton, $0.52 per
pound.
(7) In the case of extra long staple cotton, $0.7977 per
pound.
(8) In the case of long grain rice, $6.50 per
hundredweight.
(9) In the case of medium grain rice, $6.50 per
hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $10.09 per
hundredweight for each of the following kinds of oilseeds:
(A) Sunflower seed.
(B) Rapeseed.
(C) Canola.
(D) Safflower.
(E) Flaxseed.
(F) Mustard seed.
(G) Crambe.
(H) Sesame seed.
(I) Other oilseeds designated by the Secretary.
(12) In the case of dry peas, $5.40 per hundredweight.
(13) In the case of lentils, $11.28 per hundredweight.
(14) In the case of small chickpeas, $7.43 per
hundredweight.
(15) In the case of large chickpeas, $11.28 per
hundredweight.
(16) In the case of graded wool, $1.15 per pound.
(17) In the case of nongraded wool, $0.40 per pound.
(18) In the case of mohair, $4.20 per pound.
(19) In the case of honey, $0.69 per pound.
(d) Single County Loan Rate for Other Oilseeds.--The
Secretary shall establish a single loan rate in each county
for each kind of other oilseeds described in subsections
(a)(11), (b)(11), and (c)(11).
SEC. 1203. TERM OF LOANS.
(a) Term of Loan.--In the case of each loan commodity, a
marketing assistance loan under section 1201 shall have a
term of 9 months beginning on the first day of the first
month after the month in which the loan is made.
(b) Extensions Prohibited.--The Secretary may not extend
the term of a marketing assistance loan for any loan
commodity.
SEC. 1204. REPAYMENT OF LOANS.
(a) General Rule.--The Secretary shall permit the producers
on a farm to repay a marketing assistance loan under section
1201 for a loan commodity (other than upland cotton, long
grain rice, medium grain rice, extra long staple cotton, and
confectionery and each other kind of sunflower seed (other
than oil sunflower seed)) at a rate that is the lesser of--
(1) the loan rate established for the commodity under
section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283));
(2) a rate (as determined by the Secretary) that--
(A) is calculated based on average market prices for the
loan commodity during the preceding 30-day period; and
(B) will minimize discrepancies in marketing loan benefits
across State boundaries and across county boundaries; or
(3) a rate that the Secretary may develop using alternative
methods for calculating a repayment rate for a loan commodity
that the Secretary determines will--
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of the commodity by
the Federal Government;
(C) minimize the cost incurred by the Federal Government in
storing the commodity;
(D) allow the commodity produced in the United States to be
marketed freely and competitively, both domestically and
internationally; and
(E) minimize discrepancies in marketing loan benefits
across State boundaries and across county boundaries.
(b) Repayment Rates for Upland Cotton, Long Grain Rice, and
Medium Grain Rice.--The Secretary shall permit producers to
repay a marketing assistance loan under section 1201 for
upland cotton, long grain rice, and medium grain rice at a
rate that is the lesser of--
(1) the loan rate established for the commodity under
section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283)); or
(2) the prevailing world market price for the commodity, as
determined and adjusted by the Secretary in accordance with
this section.
(c) Repayment Rates for Extra Long Staple Cotton.--
Repayment of a marketing assistance loan for extra long
staple cotton shall be at the loan rate established for the
commodity under section 1202, plus interest (determined in
accordance with section 163 of
[[Page H4481]]
the Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7283)).
(d) Prevailing World Market Price.--For purposes of this
section and section 1207, the Secretary shall prescribe by
regulation--
(1) a formula to determine the prevailing world market
price for each of upland cotton, long grain rice, and medium
grain rice; and
(2) a mechanism by which the Secretary shall announce
periodically those prevailing world market prices.
(e) Adjustment of Prevailing World Market Price for Upland
Cotton, Long Grain Rice, and Medium Grain Rice.--
(1) Rice.--The prevailing world market price for long grain
rice and medium grain rice determined under subsection (d)
shall be adjusted to United States quality and location.
(2) Cotton.--The prevailing world market price for upland
cotton determined under subsection (d)--
(A) shall be adjusted to United States quality and
location, with the adjustment to include--
(i) a reduction equal to any United States Premium Factor
for upland cotton of a quality higher than Middling (M) 1\3/
32\-inch; and
(ii) the average costs to market the commodity, including
average transportation costs, as determined by the Secretary;
and
(B) may be further adjusted, during the period beginning on
the date of enactment of this Act and ending on July 31,
2013, if the Secretary determines the adjustment is necessary
to--
(i) minimize potential loan forfeitures;
(ii) minimize the accumulation of stocks of upland cotton
by the Federal Government;
(iii) ensure that upland cotton produced in the United
States can be marketed freely and competitively, both
domestically and internationally; and
(iv) ensure an appropriate transition between current-crop
and forward-crop price quotations, except that the Secretary
may use forward-crop price quotations prior to July 31 of a
marketing year only if--
(I) there are insufficient current-crop price quotations;
and
(II) the forward-crop price quotation is the lowest such
quotation available.
(3) Guidelines for additional adjustments.--In making
adjustments under this subsection, the Secretary shall
establish a mechanism for determining and announcing the
adjustments in order to avoid undue disruption in the United
States market.
(f) Repayment Rates for Confectionery and Other Kinds of
Sunflower Seeds.--The Secretary shall permit the producers on
a farm to repay a marketing assistance loan under section
1201 for confectionery and each other kind of sunflower seed
(other than oil sunflower seed) at a rate that is the lesser
of--
(1) the loan rate established for the commodity under
section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283)); or
(2) the repayment rate established for oil sunflower seed.
(g) Payment of Cotton Storage Costs.--
(1) 2008 through 2011 crop years.--Effective for each of
the 2008 through 2011 crop years, the Secretary shall provide
cotton storage payments in the same manner, and at the same
rates as the Secretary provided storage payments for the 2006
crop of cotton, except that the rates shall be reduced by 10
percent.
(2) Subsequent crop years.--Beginning with the 2012 crop
year, the Secretary shall provide cotton storage payments in
the same manner, and at the same rates as the Secretary
provided storage payments for the 2006 crop of cotton, except
that the rates shall be reduced by 20 percent.
(h) Authority to Temporarily Adjust Repayment Rates.--
(1) Adjustment authority.--In the event of a severe
disruption to marketing, transportation, or related
infrastructure, the Secretary may modify the repayment rate
otherwise applicable under this section for marketing
assistance loans under section 1201 for a loan commodity.
(2) Duration.--Any adjustment made under paragraph (1) in
the repayment rate for marketing assistance loans for a loan
commodity shall be in effect on a short-term and temporary
basis, as determined by the Secretary.
SEC. 1205. LOAN DEFICIENCY PAYMENTS.
(a) Availability of Loan Deficiency Payments.--
(1) In general.--Except as provided in subsection (d), the
Secretary may make loan deficiency payments available to
producers on a farm that, although eligible to obtain a
marketing assistance loan under section 1201 with respect to
a loan commodity, agree to forgo obtaining the loan for the
commodity in return for loan deficiency payments under this
section.
(2) Unshorn pelts, hay, and silage.--
(A) Marketing assistance loans.--Subject to subparagraph
(B), nongraded wool in the form of unshorn pelts and hay and
silage derived from a loan commodity are not eligible for a
marketing assistance loan under section 1201.
(B) Loan deficiency payment.--Effective for the 2008
through 2012 crop years, the Secretary may make loan
deficiency payments available under this section to producers
on a farm that produce unshorn pelts or hay and silage
derived from a loan commodity.
(b) Computation.--A loan deficiency payment for a loan
commodity or commodity referred to in subsection (a)(2) shall
be computed by multiplying--
(1) the payment rate determined under subsection (c) for
the commodity; by
(2) the quantity of the commodity produced by the eligible
producers, excluding any quantity for which the producers
obtain a marketing assistance loan under section 1201.
(c) Payment Rate.--
(1) In general.--In the case of a loan commodity, the
payment rate shall be the amount by which--
(A) the loan rate established under section 1202 for the
loan commodity; exceeds
(B) the rate at which a marketing assistance loan for the
loan commodity may be repaid under section 1204.
(2) Unshorn pelts.--In the case of unshorn pelts, the
payment rate shall be the amount by which--
(A) the loan rate established under section 1202 for
ungraded wool; exceeds
(B) the rate at which a marketing assistance loan for
ungraded wool may be repaid under section 1204.
(3) Hay and silage.--In the case of hay or silage derived
from a loan commodity, the payment rate shall be the amount
by which--
(A) the loan rate established under section 1202 for the
loan commodity from which the hay or silage is derived;
exceeds
(B) the rate at which a marketing assistance loan for the
loan commodity may be repaid under section 1204.
(d) Exception for Extra Long Staple Cotton.--This section
shall not apply with respect to extra long staple cotton.
(e) Effective Date for Payment Rate Determination.--The
Secretary shall determine the amount of the loan deficiency
payment to be made under this section to the producers on a
farm with respect to a quantity of a loan commodity or
commodity referred to in subsection (a)(2) using the payment
rate in effect under subsection (c) as of the date the
producers request the payment.
SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR
GRAZED ACREAGE.
(a) Eligible Producers.--
(1) In general.--Effective for the 2008 through 2012 crop
years, in the case of a producer that would be eligible for a
loan deficiency payment under section 1205 for wheat, barley,
or oats, but that elects to use acreage planted to the wheat,
barley, or oats for the grazing of livestock, the Secretary
shall make a payment to the producer under this section if
the producer enters into an agreement with the Secretary to
forgo any other harvesting of the wheat, barley, or oats on
that acreage.
(2) Grazing of triticale acreage.--Effective for the 2008
through 2012 crop years, with respect to a producer on a farm
that uses acreage planted to triticale for the grazing of
livestock, the Secretary shall make a payment to the producer
under this section if the producer enters into an agreement
with the Secretary to forgo any other harvesting of triticale
on that acreage.
(b) Payment Amount.--
(1) In general.--The amount of a payment made under this
section to a producer on a farm described in subsection
(a)(1) shall be equal to the amount determined by
multiplying--
(A) the loan deficiency payment rate determined under
section 1205(c) in effect, as of the date of the agreement,
for the county in which the farm is located; by
(B) the payment quantity determined by multiplying--
(i) the quantity of the grazed acreage on the farm with
respect to which the producer elects to forgo harvesting of
wheat, barley, or oats; and
(ii) the payment yield in effect for the calculation of
direct payments under subtitle A with respect to that loan
commodity on the farm or, in the case of a farm without a
payment yield for that loan commodity, an appropriate yield
established by the Secretary in a manner consistent with
section 1102 of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 7912).
(2) Grazing of triticale acreage.--The amount of a payment
made under this section to a producer on a farm described in
subsection (a)(2) shall be equal to the amount determined by
multiplying--
(A) the loan deficiency payment rate determined under
section 1205(c) in effect for wheat, as of the date of the
agreement, for the county in which the farm is located; by
(B) the payment quantity determined by multiplying--
(i) the quantity of the grazed acreage on the farm with
respect to which the producer elects to forgo harvesting of
triticale; and
(ii) the payment yield in effect for the calculation of
direct payments under subtitle A with respect to wheat on the
farm or, in the case of a farm without a payment yield for
wheat, an appropriate yield established by the Secretary in a
manner consistent with section 1102 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 7912).
(c) Time, Manner, and Availability of Payment.--
(1) Time and manner.--A payment under this section shall be
made at the same time and in the same manner as loan
deficiency payments are made under section 1205.
(2) Availability.--
(A) In general.--The Secretary shall establish an
availability period for the payments authorized by this
section.
[[Page H4482]]
(B) Certain commodities.--In the case of wheat, barley, and
oats, the availability period shall be consistent with the
availability period for the commodity established by the
Secretary for marketing assistance loans authorized by this
subtitle.
(d) Prohibition on Crop Insurance Indemnity or Noninsured
Crop Assistance.--A 2008 through 2012 crop of wheat, barley,
oats, or triticale planted on acreage that a producer elects,
in the agreement required by subsection (a), to use for the
grazing of livestock in lieu of any other harvesting of the
crop shall not be eligible for an indemnity under a policy or
plan of insurance authorized under the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance
under section 196 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333).
SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND
COTTON.
(a) Special Import Quota.--
(1) Definition of special import quota.--In this
subsection, the term ``special import quota'' means a
quantity of imports that is not subject to the over-quota
tariff rate of a tariff-rate quota.
(2) Establishment.--
(A) In general.--The President shall carry out an import
quota program during the period beginning on the date of
enactment of this Act through July 31, 2013, as provided in
this subsection.
(B) Program requirements.--Whenever the Secretary
determines and announces that for any consecutive 4-week
period, the Friday through Thursday average price quotation
for the lowest-priced United States growth, as quoted for
Middling (M) 1\3/32\-inch cotton, delivered to a definable
and significant international market, as determined by the
Secretary, exceeds the prevailing world market price, there
shall immediately be in effect a special import quota.
(3) Quantity.--The quota shall be equal to 1 week's
consumption of cotton by domestic mills at the seasonally
adjusted average rate of the most recent 3 months for which
data are available.
(4) Application.--The quota shall apply to upland cotton
purchased not later than 90 days after the date of the
Secretary's announcement under paragraph (2) and entered into
the United States not later than 180 days after that date.
(5) Overlap.--A special quota period may be established
that overlaps any existing quota period if required by
paragraph (2), except that a special quota period may not be
established under this subsection if a quota period has been
established under subsection (b).
(6) Preferential tariff treatment.--The quantity under a
special import quota shall be considered to be an in-quota
quantity for purposes of--
(A) section 213(d) of the Caribbean Basin Economic Recovery
Act (19 U.S.C. 2703(d));
(B) section 204 of the Andean Trade Preference Act (19
U.S.C. 3203);
(C) section 503(d) of the Trade Act of 1974 (19 U.S.C.
2463(d)); and
(D) General Note 3(a)(iv) to the Harmonized Tariff
Schedule.
(7) Limitation.--The quantity of cotton entered into the
United States during any marketing year under the special
import quota established under this subsection may not exceed
the equivalent of 10 week's consumption of upland cotton by
domestic mills at the seasonally adjusted average rate of the
3 months immediately preceding the first special import quota
established in any marketing year.
(b) Limited Global Import Quota for Upland Cotton.--
(1) Definitions.--In this subsection:
(A) Supply.--The term ``supply'' means, using the latest
official data of the Bureau of the Census, the Department of
Agriculture, and the Department of the Treasury--
(i) the carry-over of upland cotton at the beginning of the
marketing year (adjusted to 480-pound bales) in which the
quota is established;
(ii) production of the current crop; and
(iii) imports to the latest date available during the
marketing year.
(B) Demand.--The term ``demand'' means--
(i) the average seasonally adjusted annual rate of domestic
mill consumption of cotton during the most recent 3 months
for which data are available; and
(ii) the larger of--
(I) average exports of upland cotton during the preceding 6
marketing years; or
(II) cumulative exports of upland cotton plus outstanding
export sales for the marketing year in which the quota is
established.
(C) Limited global import quota.--The term ``limited global
import quota'' means a quantity of imports that is not
subject to the over-quota tariff rate of a tariff-rate quota.
(2) Program.--The President shall carry out an import quota
program that provides that whenever the Secretary determines
and announces that the average price of the base quality of
upland cotton, as determined by the Secretary, in the
designated spot markets for a month exceeded 130 percent of
the average price of the quality of cotton in the markets for
the preceding 36 months, notwithstanding any other provision
of law, there shall immediately be in effect a limited global
import quota subject to the following conditions:
(A) Quantity.--The quantity of the quota shall be equal to
21 days of domestic mill consumption of upland cotton at the
seasonally adjusted average rate of the most recent 3 months
for which data are available or as estimated by the
Secretary.
(B) Quantity if prior quota.--If a quota has been
established under this subsection during the preceding 12
months, the quantity of the quota next established under this
subsection shall be the smaller of 21 days of domestic mill
consumption calculated under subparagraph (A) or the quantity
required to increase the supply to 130 percent of the demand.
(C) Preferential tariff treatment.--The quantity under a
limited global import quota shall be considered to be an in-
quota quantity for purposes of--
(i) section 213(d) of the Caribbean Basin Economic Recovery
Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade Preference Act (19
U.S.C. 3203);
(iii) section 503(d) of the Trade Act of 1974 (19 U.S.C.
2463(d)); and
(iv) General Note 3(a)(iv) to the Harmonized Tariff
Schedule.
(D) Quota entry period.--When a quota is established under
this subsection, cotton may be entered under the quota during
the 90-day period beginning on the date the quota is
established by the Secretary.
(3) No overlap.--Notwithstanding paragraph (2), a quota
period may not be established that overlaps an existing quota
period or a special quota period established under subsection
(a).
(c) Economic Adjustment Assistance to Users of Upland
Cotton.--
(1) In general.--Subject to paragraph (2), the Secretary
shall, on a monthly basis, provide economic adjustment
assistance to domestic users of upland cotton in the form of
payments for all documented use of that upland cotton during
the previous monthly period regardless of the origin of the
upland cotton.
(2) Value of assistance.--
(A) Beginning period.--During the period beginning on
August 1, 2008, and ending on July 31, 2012, the value of the
assistance provided under paragraph (1) shall be 4 cents per
pound.
(B) Subsequent period.--Effective beginning on August 1,
2012, the value of the assistance provided under paragraph
(1) shall be 3 cents per pound.
(3) Allowable purposes.--Economic adjustment assistance
under this subsection shall be made available only to
domestic users of upland cotton that certify that the
assistance shall be used only to acquire, construct, install,
modernize, develop, convert, or expand land, plant,
buildings, equipment, facilities, or machinery.
(4) Review or audit.--The Secretary may conduct such review
or audit of the records of a domestic user under this
subsection as the Secretary determines necessary to carry out
this subsection.
(5) Improper use of assistance.--If the Secretary
determines, after a review or audit of the records of the
domestic user, that economic adjustment assistance under this
subsection was not used for the purposes specified in
paragraph (3), the domestic user shall be--
(A) liable to repay the assistance to the Secretary, plus
interest, as determined by the Secretary; and
(B) ineligible to receive assistance under this subsection
for a period of 1 year following the determination of the
Secretary.
SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG
STAPLE COTTON.
(a) Competitiveness Program.--Notwithstanding any other
provision of law, during the period beginning on the date of
enactment of this Act through July 31, 2013, the Secretary
shall carry out a program--
(1) to maintain and expand the domestic use of extra long
staple cotton produced in the United States;
(2) to increase exports of extra long staple cotton
produced in the United States; and
(3) to ensure that extra long staple cotton produced in the
United States remains competitive in world markets.
(b) Payments Under Program; Trigger.--Under the program,
the Secretary shall make payments available under this
section whenever--
(1) for a consecutive 4-week period, the world market price
for the lowest priced competing growth of extra long staple
cotton (adjusted to United States quality and location and
for other factors affecting the competitiveness of such
cotton), as determined by the Secretary, is below the
prevailing United States price for a competing growth of
extra long staple cotton; and
(2) the lowest priced competing growth of extra long staple
cotton (adjusted to United States quality and location and
for other factors affecting the competitiveness of such
cotton), as determined by the Secretary, is less than 134
percent of the loan rate for extra long staple cotton.
(c) Eligible Recipients.--The Secretary shall make payments
available under this section to domestic users of extra long
staple cotton produced in the United States and exporters of
extra long staple cotton produced in the United States that
enter into an agreement with the Commodity Credit Corporation
to participate in the program under this section.
(d) Payment Amount.--Payments under this section shall be
based on the amount of the difference in the prices referred
to in subsection (b)(1) during the fourth week of the
consecutive 4-week period multiplied by
[[Page H4483]]
the amount of documented purchases by domestic users and
sales for export by exporters made in the week following such
a consecutive 4-week period.
SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE
FEED GRAINS AND SEED COTTON.
(a) High Moisture Feed Grains.--
(1) Definition of high moisture state.--In this subsection,
the term ``high moisture state'' means corn or grain sorghum
having a moisture content in excess of Commodity Credit
Corporation standards for marketing assistance loans made by
the Secretary under section 1201.
(2) Recourse loans available.--For each of the 2008 through
2012 crops of corn and grain sorghum, the Secretary shall
make available recourse loans, as determined by the
Secretary, to producers on a farm that--
(A) normally harvest all or a portion of their crop of corn
or grain sorghum in a high moisture state;
(B) present--
(i) certified scale tickets from an inspected, certified
commercial scale, including a licensed warehouse, feedlot,
feed mill, distillery, or other similar entity approved by
the Secretary, pursuant to regulations issued by the
Secretary; or
(ii) field or other physical measurements of the standing
or stored crop in regions of the United States, as determined
by the Secretary, that do not have certified commercial
scales from which certified scale tickets may be obtained
within reasonable proximity of harvest operation;
(C) certify that they were the owners of the feed grain at
the time of delivery to, and that the quantity to be placed
under loan under this subsection was in fact harvested on the
farm and delivered to, a feedlot, feed mill, or commercial or
on-farm high-moisture storage facility, or to a facility
maintained by the users of corn and grain sorghum in a high
moisture state; and
(D) comply with deadlines established by the Secretary for
harvesting the corn or grain sorghum and submit applications
for loans under this subsection within deadlines established
by the Secretary.
(3) Eligibility of acquired feed grains.--A loan under this
subsection shall be made on a quantity of corn or grain
sorghum of the same crop acquired by the producer equivalent
to a quantity determined by multiplying--
(A) the acreage of the corn or grain sorghum in a high
moisture state harvested on the producer's farm; by
(B) the lower of the farm program payment yield used to
make counter-cyclical payments under subtitle A or the actual
yield on a field, as determined by the Secretary, that is
similar to the field from which the corn or grain sorghum was
obtained.
(b) Recourse Loans Available for Seed Cotton.--For each of
the 2008 through 2012 crops of upland cotton and extra long
staple cotton, the Secretary shall make available recourse
seed cotton loans, as determined by the Secretary, on any
production.
(c) Repayment Rates.--Repayment of a recourse loan made
under this section shall be at the loan rate established for
the commodity by the Secretary, plus interest (determined in
accordance with section 163 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
SEC. 1210. ADJUSTMENTS OF LOANS.
(a) Adjustment Authority.--Subject to subsection (e), the
Secretary may make appropriate adjustments in the loan rates
for any loan commodity (other than cotton) for differences in
grade, type, quality, location, and other factors.
(b) Manner of Adjustment.--The adjustments under subsection
(a) shall, to the maximum extent practicable, be made in such
a manner that the average loan level for the commodity will,
on the basis of the anticipated incidence of the factors, be
equal to the level of support determined in accordance with
this subtitle and subtitles B through E.
(c) Adjustment on County Basis.--
(1) In general.--The Secretary may establish loan rates for
a crop for producers in individual counties in a manner that
results in the lowest loan rate being 95 percent of the
national average loan rate, if those loan rates do not result
in an increase in outlays.
(2) Prohibition.--Adjustments under this subsection shall
not result in an increase in the national average loan rate
for any year.
(d) Adjustment in Loan Rate for Cotton.--
(1) In general.--The Secretary may make appropriate
adjustments in the loan rate for cotton for differences in
quality factors.
(2) Revisions to quality adjustments for upland cotton.--
(A) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall implement
revisions in the administration of the marketing assistance
loan program for upland cotton to more accurately and
efficiently reflect market values for upland cotton.
(B) Mandatory revisions.--Revisions under subparagraph (A)
shall include--
(i) the elimination of warehouse location differentials;
(ii) the establishment of differentials for the various
quality factors and staple lengths of cotton based on a 3-
year, weighted moving average of the weighted designated spot
market regions, as determined by regional production;
(iii) the elimination of any artificial split in the
premium or discount between upland cotton with a 32 or 33
staple length due to micronaire; and
(iv) a mechanism to ensure that no premium or discount is
established that exceeds the premium or discount associated
with a leaf grade that is 1 better than the applicable color
grade.
(C) Discretionary revisions.--Revisions under subparagraph
(A) may include--
(i) the use of non-spot market price data, in addition to
spot market price data, that would enhance the accuracy of
the price information used in determining quality adjustments
under this subsection;
(ii) adjustments in the premiums or discounts associated
with upland cotton with a staple length of 33 or above due to
micronaire with the goal of eliminating any unnecessary
artificial splits in the calculations of the premiums or
discounts; and
(iii) such other adjustments as the Secretary determines
appropriate, after consultations conducted in accordance with
paragraph (3).
(3) Consultation with private sector.--
(A) Prior to revision.--In making adjustments to the loan
rate for cotton (including any review of the adjustments) as
provided in this subsection, the Secretary shall consult with
representatives of the United States cotton industry.
(B) Inapplicability of federal advisory committee act.--The
Federal Advisory Committee Act (5 U.S.C. App.) shall not
apply to consultations under this subsection.
(4) Review of adjustments.--The Secretary may review the
operation of the upland cotton quality adjustments
implemented pursuant to this subsection and may make further
revisions to the administration of the loan program for
upland cotton, by--
(A) revoking or revising any actions taken under paragraph
(2)(B); or
(B) revoking or revising any actions taken or authorized to
be taken under paragraph (2)(C).
(e) Rice.--The Secretary shall not make adjustments in the
loan rates for long grain rice and medium grain rice, except
for differences in grade and quality (including milling
yields).
Subtitle C--Peanuts
SEC. 1301. DEFINITIONS.
In this subtitle:
(1) Base acres for peanuts.--
(A) In general.--The term ``base acres for peanuts'' means
the number of acres assigned to a farm pursuant to section
1302 of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 7952), as in effect on September 30, 2007, subject to
any adjustment under section 1302 of this Act.
(B) Covered commodities.--The term ``base acres'', with
respect to a covered commodity, has the meaning given the
term in section 1101.
(2) Counter-cyclical payment.--The term ``counter-cyclical
payment'' means a payment made to producers on a farm under
section 1304.
(3) Direct payment.--The term ``direct payment'' means a
direct payment made to producers on a farm under section
1303.
(4) Effective price.--The term ``effective price'' means
the price calculated by the Secretary under section 1304 for
peanuts to determine whether counter-cyclical payments are
required to be made under that section for a crop year.
(5) Payment acres.--The term ``payment acres'' means, in
the case of direct payments and counter-cyclical payments--
(A) except as provided in subparagraph (B), 85 percent of
the base acres of peanuts on a farm on which direct payments
or counter-cyclical payments are made; and
(B) in the case of direct payments for each of the 2009
through 2011 crop years, 83.3 percent of the base acres for
peanuts on a farm on which direct payments are made.
(6) Payment yield.--The term ``payment yield'' means the
yield established for direct payments and the yield
established for counter-cyclical payments under section 1302
of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 7952), as in effect on September 30, 2007, for a farm
for peanuts.
(7) Producer.--
(A) In general.--The term ``producer'' means an owner,
operator, landlord, tenant, or sharecropper that shares in
the risk of producing a crop on a farm and is entitled to
share in the crop available for marketing from the farm, or
would have shared had the crop been produced.
(B) Hybrid seed.--In determining whether a grower of hybrid
seed is a producer, the Secretary shall--
(i) not take into consideration the existence of a hybrid
seed contract; and
(ii) ensure that program requirements do not adversely
affect the ability of the grower to receive a payment under
this subtitle.
(8) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United States.
(9) Target price.--The term ``target price'' means the
price per ton of peanuts used to determine the payment rate
for counter-cyclical payments.
(10) United states.--The term ``United States'', when used
in a geographical sense, means all of the States.
SEC. 1302. BASE ACRES FOR PEANUTS FOR A FARM.
(a) Adjustment of Base Acreage for Peanuts.--
[[Page H4484]]
(1) In general.--The Secretary shall provide for an
adjustment, as appropriate, in the base acres for peanuts for
a farm whenever any of the following circumstances occur:
(A) A conservation reserve contract entered into under
section 1231 of the Food Security Act of 1985 (16 U.S.C.
3831) with respect to the farm expires or is voluntarily
terminated, or was terminated or expired during the period
beginning on October 1, 2007, and ending on the date of
enactment of this Act.
(B) Cropland is released from coverage under a conservation
reserve contract by the Secretary, or was released during the
period beginning on October 1, 2007, and ending on the date
of enactment of this Act.
(C) The producer has eligible pulse crop acreage, which
shall be determined in the same manner as eligible oilseed
acreage under section 1101(a)(2) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(D) The producer has eligible oilseed acreage as the result
of the Secretary designating additional oilseeds, which shall
be determined in the same manner as eligible oilseed acreage
under section 1101(a)(2) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(2) Special conservation reserve acreage payment rules.--
For the crop year in which a base acres for peanuts
adjustment under subparagraph (A) or (B) of paragraph (1) is
first made, the owner of the farm shall elect to receive
either direct payments and counter-cyclical payments with
respect to the acreage added to the farm under this
subsection or a prorated payment under the conservation
reserve contract, but not both.
(b) Prevention of Excess Base Acres for Peanuts.--
(1) Required reduction.--If the sum of the base acres for
peanuts for a farm, together with the acreage described in
paragraph (2), exceeds the actual cropland acreage of the
farm, the Secretary shall reduce the base acres for peanuts
for the farm or the base acres for 1 or more covered
commodities for the farm so that the sum of the base acres
for peanuts and acreage described in paragraph (2) does not
exceed the actual cropland acreage of the farm.
(2) Other acreage.--For purposes of paragraph (1), the
Secretary shall include the following:
(A) Any base acres for the farm for a covered commodity.
(B) Any acreage on the farm enrolled in the conservation
reserve program or wetlands reserve program under chapter 1
of subtitle D of title XII of the Food Security Act of 1985
(16 U.S.C. 3830 et seq.).
(C) Any other acreage on the farm enrolled in a Federal
conservation program for which payments are made in exchange
for not producing an agricultural commodity on the acreage.
(D) Any eligible pulse crop acreage, which shall be
determined in the same manner as eligible oilseed acreage
under section 1101(a)(2) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
(E) If the Secretary designates additional oilseeds, any
eligible oilseed acreage, which shall be determined in the
same manner as eligible oilseed acreage under section
1101(a)(2) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 7911(a)(2)).
(3) Selection of acres.--The Secretary shall give the owner
of the farm the opportunity to select the base acres for
peanuts or the base acres for covered commodities against
which the reduction required by paragraph (1) will be made.
(4) Exception for double-cropped acreage.--In applying
paragraph (1), the Secretary shall make an exception in the
case of double cropping, as determined by the Secretary.
(5) Coordinated application of requirements.--The Secretary
shall take into account section 1101(b) when applying the
requirements of this subsection.
(c) Reduction in Base Acres.--
(1) Reduction at option of owner.--
(A) In general.--The owner of a farm may reduce, at any
time, the base acres for peanuts for the farm.
(B) Effect of reduction.--A reduction under subparagraph
(A) shall be permanent and made in a manner prescribed by the
Secretary.
(2) Required action by secretary.--
(A) In general.--The Secretary shall proportionately reduce
base acres on a farm for peanuts for land that has been
subdivided and developed for multiple residential units or
other nonfarming uses if the size of the tracts and the
density of the subdivision is such that the land is unlikely
to return to the previous agricultural use, unless the
producers on the farm demonstrate that the land--
(i) remains devoted to commercial agricultural production;
or
(ii) is likely to be returned to the previous agricultural
use.
(B) Requirement.--The Secretary shall establish procedures
to identify land described in subparagraph (A).
(3) Review and report.--Each year, to ensure, to the
maximum extent practicable, that payments are received only
by producers, the Secretary shall submit to Congress a report
that describes the results of the actions taken under
paragraph (2).
(d) Treatment of Farms With Limited Base Acres.--
(1) Prohibition on payments.--Except as provided in
paragraph (2) and notwithstanding any other provision of this
title, a producer on a farm may not receive direct payments,
counter-cyclical payments, or average crop revenue election
payments if the sum of the base acres of the farm is 10 acres
or less, as determined by the Secretary.
(2) Exceptions.--Paragraph (1) shall not apply to a farm
owned by--
(A) a socially disadvantaged farmer or rancher (as defined
in section 355(e) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2003(e)); or
(B) a limited resource farmer or rancher, as defined by the
Secretary.
(3) Data collection and publication.--The Secretary shall--
(A) collect and publish segregated data and survey
information about the farm profiles, utilization of land, and
crop production; and
(B) perform an evaluation on the supply and price of fruits
and vegetables based on the effects of suspension of base
acres under this section.
SEC. 1303. AVAILABILITY OF DIRECT PAYMENTS FOR PEANUTS.
(a) Payment Required.--For each of the 2008 through 2012
crop years for peanuts, the Secretary shall make direct
payments to the producers on a farm for which a payment yield
and base acres for peanuts are established.
(b) Payment Rate.--Except as provided in section 1105, the
payment rate used to make direct payments with respect to
peanuts for a crop year shall be equal to $36 per ton.
(c) Payment Amount.--The amount of the direct payment to be
paid to the producers on a farm for peanuts for a crop year
shall be equal to the product of the following:
(1) The payment rate specified in subsection (b).
(2) The payment acres on the farm.
(3) The payment yield for the farm.
(d) Time for Payment.--
(1) In general.--Except as provided in paragraph (2), in
the case of each of the 2008 through 2012 crop years, the
Secretary may not make direct payments under this section
before October 1 of the calendar year in which the crop is
harvested.
(2) Advance payments.--
(A) Option.--
(i) In general.--At the option of the producers on a farm,
the Secretary shall pay in advance up to 22 percent of the
direct payment for peanuts for any of the 2008 through 2011
crop years to the producers on a farm.
(ii) 2008 crop year.--If the producers on a farm elect to
receive advance direct payments under clause (i) for peanuts
for the 2008 crop year, as soon as practicable after the
election, the Secretary shall make the advance direct payment
to the producers on the farm.
(B) Month.--
(i) Selection.--Subject to clauses (ii) and (iii), the
producers on a farm shall select the month during which the
advance payment for a crop year will be made.
(ii) Options.--The month selected may be any month during
the period--
(I) beginning on December 1 of the calendar year before the
calendar year in which the crop of peanuts is harvested; and
(II) ending during the month within which the direct
payment would otherwise be made.
(iii) Change.--The producers on a farm may change the
selected month for a subsequent advance payment by providing
advance notice to the Secretary.
(3) Repayment of advance payments.--If a producer on a farm
that receives an advance direct payment for a crop year
ceases to be a producer on that farm, or the extent to which
the producer shares in the risk of producing a crop changes,
before the date the remainder of the direct payment is made,
the producer shall be responsible for repaying the Secretary
the applicable amount of the advance payment, as determined
by the Secretary.
SEC. 1304. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS FOR
PEANUTS.
(a) Payment Required.--Except as provided in section 1105,
for each of the 2008 through 2012 crop years for peanuts, the
Secretary shall make counter-cyclical payments to producers
on farms for which payment yields and base acres for peanuts
are established if the Secretary determines that the
effective price for peanuts is less than the target price for
peanuts.
(b) Effective Price.--For purposes of subsection (a), the
effective price for peanuts is equal to the sum of the
following:
(1) The higher of the following:
(A) The national average market price for peanuts received
by producers during the 12-month marketing year for peanuts,
as determined by the Secretary.
(B) The national average loan rate for a marketing
assistance loan for peanuts in effect for the applicable
period under this subtitle.
(2) The payment rate in effect for peanuts under section
1303 for the purpose of making direct payments.
(c) Target Price.--For purposes of subsection (a), the
target price for peanuts shall be equal to $495 per ton.
(d) Payment Rate.--The payment rate used to make counter-
cyclical payments for a crop year shall be equal to the
difference between--
(1) the target price for peanuts; and
(2) the effective price determined under subsection (b) for
peanuts.
(e) Payment Amount.--If counter-cyclical payments are
required to be paid for any of the 2008 through 2012 crops of
peanuts, the amount of the counter-cyclical payment to
[[Page H4485]]
be paid to the producers on a farm for that crop year shall
be equal to the product of the following:
(1) The payment rate specified in subsection (d).
(2) The payment acres on the farm.
(3) The payment yield for the farm.
(f) Time for Payments.--
(1) General rule.--Except as provided in paragraph (2), if
the Secretary determines under subsection (a) that counter-
cyclical payments are required to be made under this section
for a crop of peanuts, beginning October 1, or as soon as
practicable after the end of the marketing year, the
Secretary shall make the counter-cyclical payments for the
crop.
(2) Availability of partial payments.--
(A) In general.--If, before the end of the 12-month
marketing year, the Secretary estimates that counter-cyclical
payments will be required under this section for a crop year,
the Secretary shall give producers on a farm the option to
receive partial payments of the counter-cyclical payment
projected to be made for the crop.
(B) Election.--
(i) In general.--The Secretary shall allow producers on a
farm to make an election to receive partial payments under
subparagraph (A) at any time but not later than 60 days prior
to the end of the marketing year for the crop.
(ii) Date of issuance.--The Secretary shall issue the
partial payment after the date of an announcement by the
Secretary but not later than 30 days prior to the end of the
marketing year.
(3) Time for partial payments.--When the Secretary makes
partial payments for any of the 2008 through 2010 crop
years--
(A) the first partial payment shall be made after
completion of the first 180 days of the marketing year for
that crop; and
(B) the final partial payment shall be made beginning
October 1, or as soon as practicable thereafter, after the
end of the applicable marketing year for that crop.
(4) Amount of partial payments.--
(A) First partial payment.--For each of the 2008 through
2010 crop years, the first partial payment under paragraph
(3) to the producers on a farm may not exceed 40 percent of
the projected counter-cyclical payment for the crop year, as
determined by the Secretary.
(B) Final payment.--The final payment for a crop year shall
be equal to the difference between--
(i) the actual counter-cyclical payment to be made to the
producers for that crop year; and
(ii) the amount of the partial payment made to the
producers under subparagraph (A).
(5) Repayment.--The producers on a farm that receive a
partial payment under this subsection for a crop year shall
repay to the Secretary the amount, if any, by which the total
of the partial payments exceed the actual counter-cyclical
payment to be made for that crop year.
SEC. 1305. PRODUCER AGREEMENT REQUIRED AS CONDITION ON
PROVISION OF PAYMENTS.
(a) Compliance With Certain Requirements.--
(1) Requirements.--Before the producers on a farm may
receive direct payments or counter-cyclical payments under
this subtitle, or average crop revenue election payments
under section 1105, with respect to the farm, the producers
shall agree, during the crop year for which the payments are
made and in exchange for the payments--
(A) to comply with applicable conservation requirements
under subtitle B of title XII of the Food Security Act of
1985 (16 U.S.C. 3811 et seq.);
(B) to comply with applicable wetland protection
requirements under subtitle C of title XII of that Act (16
U.S.C. 3821 et seq.);
(C) to comply with the planting flexibility requirements of
section 1306;
(D) to use the land on the farm, in a quantity equal to the
attributable base acres for peanuts and any base acres for
the farm under subtitle A, for an agricultural or conserving
use, and not for a nonagricultural commercial, industrial, or
residential use, as determined by the Secretary; and
(E) to effectively control noxious weeds and otherwise
maintain the land in accordance with sound agricultural
practices, as determined by the Secretary, if the
agricultural or conserving use involves the noncultivation of
any portion of the land referred to in subparagraph (D).
(2) Compliance.--The Secretary may issue such rules as the
Secretary considers necessary to ensure producer compliance
with the requirements of paragraph (1).
(3) Modification.--At the request of the transferee or
owner, the Secretary may modify the requirements of this
subsection if the modifications are consistent with the
objectives of this subsection, as determined by the
Secretary.
(b) Transfer or Change of Interest in Farm.--
(1) Termination.--
(A) In general.--Except as provided in paragraph (2), a
transfer of (or change in) the interest of the producers on a
farm in the base acres for peanuts for which direct payments
or counter-cyclical payments are made, or on which average
crop revenue election payments are based, shall result in the
termination of the direct payments, counter-cyclical
payments, or average crop revenue election payments to the
extent the payments are made or based on the base acres,
unless the transferee or owner of the acreage agrees to
assume all obligations under subsection (a).
(B) Effective date.--The termination shall take effect on
the date determined by the Secretary.
(2) Exception.--If a producer entitled to a direct payment,
counter-cyclical payment, or average crop revenue election
payment dies, becomes incompetent, or is otherwise unable to
receive the payment, the Secretary shall make the payment, in
accordance with rules issued by the Secretary.
(c) Acreage Reports.--
(1) In general.--As a condition on the receipt of any
benefits under this subtitle, the Secretary shall require
producers on a farm to submit to the Secretary annual acreage
reports with respect to all cropland on the farm.
(2) Penalties.--No penalty with respect to benefits under
this subtitle shall be assessed against the producers on a
farm for an inaccurate acreage report unless the producers on
the farm knowingly and willfully falsified the acreage
report.
(d) Tenants and Sharecroppers.--In carrying out this
subtitle, the Secretary shall provide adequate safeguards to
protect the interests of tenants and sharecroppers.
(e) Sharing of Payments.--The Secretary shall provide for
the sharing of direct payments, counter-cyclical payments, or
average crop revenue election payments under section 1105
among the producers on a farm on a fair and equitable basis.
SEC. 1306. PLANTING FLEXIBILITY.
(a) Permitted Crops.--Subject to subsection (b), any
commodity or crop may be planted on the base acres for
peanuts on a farm.
(b) Limitations Regarding Certain Commodities.--
(1) General limitation.--The planting of an agricultural
commodity specified in paragraph (3) shall be prohibited on
base acres for peanuts unless the commodity, if planted, is
destroyed before harvest.
(2) Treatment of trees and other perennials.--The planting
of an agricultural commodity specified in paragraph (3) that
is produced on a tree or other perennial plant shall be
prohibited on base acres for peanuts.
(3) Covered agricultural commodities.--Paragraphs (1) and
(2) apply to the following agricultural commodities:
(A) Fruits.
(B) Vegetables (other than mung beans and pulse crops).
(C) Wild rice.
(c) Exceptions.--Paragraphs (1) and (2) of subsection (b)
shall not limit the planting of an agricultural commodity
specified in paragraph (3) of that subsection--
(1) in any region in which there is a history of double-
cropping of peanuts with agricultural commodities specified
in subsection (b)(3), as determined by the Secretary, in
which case the double-cropping shall be permitted;
(2) on a farm that the Secretary determines has a history
of planting agricultural commodities specified in subsection
(b)(3) on the base acres for peanuts, except that direct
payments and counter-cyclical payments shall be reduced by an
acre for each acre planted to such an agricultural commodity;
or
(3) by the producers on a farm that the Secretary
determines has an established planting history of a specific
agricultural commodity specified in subsection (b)(3), except
that--
(A) the quantity planted may not exceed the average annual
planting history of such agricultural commodity by the
producers on the farm in the 1991 through 1995 or 1998
through 2001 crop years (excluding any crop year in which no
plantings were made), as determined by the Secretary; and
(B) direct payments and counter-cyclical payments shall be
reduced by an acre for each acre planted to such agricultural
commodity.
SEC. 1307. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY
PAYMENTS FOR PEANUTS.
(a) Nonrecourse Loans Available.--
(1) Availability.--For each of the 2008 through 2012 crops
of peanuts, the Secretary shall make available to producers
on a farm nonrecourse marketing assistance loans for peanuts
produced on the farm.
(2) Terms and conditions.--The loans shall be made under
terms and conditions that are prescribed by the Secretary and
at the loan rate established under subsection (b).
(3) Eligible production.--The producers on a farm shall be
eligible for a marketing assistance loan under this
subsection for any quantity of peanuts produced on the farm.
(4) Options for obtaining loan.--A marketing assistance
loan under this subsection, and loan deficiency payments
under subsection (e), may be obtained at the option of the
producers on a farm through--
(A) a designated marketing association or marketing
cooperative of producers that is approved by the Secretary;
or
(B) the Farm Service Agency.
(5) Storage of loan peanuts.--As a condition on the
Secretary's approval of an individual or entity to provide
storage for peanuts for which a marketing assistance loan is
made under this section, the individual or entity shall
agree--
(A) to provide such storage on a nondiscriminatory basis;
and
(B) to comply with such additional requirements as the
Secretary considers appropriate to accomplish the purposes of
this section
[[Page H4486]]
and promote fairness in the administration of the benefits of
this section.
(6) Storage, handling, and associated costs.--
(A) In general.--Beginning with the 2008 crop of peanuts,
to ensure proper storage of peanuts for which a loan is made
under this section, the Secretary shall pay handling and
other associated costs (other than storage costs) incurred at
the time at which the peanuts are placed under loan, as
determined by the Secretary.
(B) Redemption and forfeiture.--The Secretary shall--
(i) require the repayment of handling and other associated
costs paid under subparagraph (A) for all peanuts pledged as
collateral for a loan that is redeemed under this section;
and
(ii) pay storage, handling, and other associated costs for
all peanuts pledged as collateral that are forfeited under
this section.
(7) Marketing.--A marketing association or cooperative may
market peanuts for which a loan is made under this section in
any manner that conforms to consumer needs, including the
separation of peanuts by type and quality.
(b) Loan Rate.--Except as provided in section 1105, the
loan rate for a marketing assistance loan for peanuts under
subsection (a) shall be equal to $355 per ton.
(c) Term of Loan.--
(1) In general.--A marketing assistance loan for peanuts
under subsection (a) shall have a term of 9 months beginning
on the first day of the first month after the month in which
the loan is made.
(2) Extensions prohibited.--The Secretary may not extend
the term of a marketing assistance loan for peanuts under
subsection (a).
(d) Repayment Rate.--
(1) In general.--The Secretary shall permit producers on a
farm to repay a marketing assistance loan for peanuts under
subsection (a) at a rate that is the lesser of--
(A) the loan rate established for peanuts under subsection
(b), plus interest (determined in accordance with section 163
of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7283)); or
(B) a rate that the Secretary determines will--
(i) minimize potential loan forfeitures;
(ii) minimize the accumulation of stocks of peanuts by the
Federal Government;
(iii) minimize the cost incurred by the Federal Government
in storing peanuts; and
(iv) allow peanuts produced in the United States to be
marketed freely and competitively, both domestically and
internationally.
(2) Authority to temporarily adjust repayment rates.--
(A) Adjustment authority.--In the event of a severe
disruption to marketing, transportation, or related
infrastructure, the Secretary may modify the repayment rate
otherwise applicable under this subsection for marketing
assistance loans for peanuts under subsection (a).
(B) Duration.--An adjustment made under subparagraph (A) in
the repayment rate for marketing assistance loans for peanuts
shall be in effect on a short-term and temporary basis, as
determined by the Secretary.
(e) Loan Deficiency Payments.--
(1) Availability.--The Secretary may make loan deficiency
payments available to producers on a farm that, although
eligible to obtain a marketing assistance loan for peanuts
under subsection (a), agree to forgo obtaining the loan for
the peanuts in return for loan deficiency payments under this
subsection.
(2) Computation.--A loan deficiency payment under this
subsection shall be computed by multiplying--
(A) the payment rate determined under paragraph (3) for
peanuts; by
(B) the quantity of the peanuts produced by the producers,
excluding any quantity for which the producers obtain a
marketing assistance loan under subsection (a).
(3) Payment rate.--For purposes of this subsection, the
payment rate shall be the amount by which--
(A) the loan rate established under subsection (b); exceeds
(B) the rate at which a loan may be repaid under subsection
(d).
(4) Effective date for payment rate determination.--The
Secretary shall determine the amount of the loan deficiency
payment to be made under this subsection to the producers on
a farm with respect to a quantity of peanuts using the
payment rate in effect under paragraph (3) as of the date the
producers request the payment.
(f) Compliance With Conservation and Wetlands
Requirements.--As a condition of the receipt of a marketing
assistance loan under subsection (a), the producer shall
comply with applicable conservation requirements under
subtitle B of title XII of the Food Security Act of 1985 (16
U.S.C. 3811 et seq.) and applicable wetland protection
requirements under subtitle C of title XII of that Act (16
U.S.C. 3821 et seq.) during the term of the loan.
(g) Reimbursable Agreements and Payment of Administrative
Expenses.--The Secretary may implement any reimbursable
agreements or provide for the payment of administrative
expenses under this subtitle only in a manner that is
consistent with such activities in regard to other
commodities.
SEC. 1308. ADJUSTMENTS OF LOANS.
(a) Adjustment Authority.--The Secretary may make
appropriate adjustments in the loan rates for peanuts for
differences in grade, type, quality, location, and other
factors.
(b) Manner of Adjustment.--The adjustments under subsection
(a) shall, to the maximum extent practicable, be made in such
a manner that the average loan level for peanuts will, on the
basis of the anticipated incidence of the factors, be equal
to the level of support determined in accordance with this
subtitle and subtitles B, D, and E.
(c) Adjustment on County Basis.--
(1) In general.--Subject to paragraph (2), the Secretary
may establish loan rates for a crop of peanuts for producers
in individual counties in a manner that results in the lowest
loan rate being 95 percent of the national average loan rate,
if those loan rates do not result in an increase in outlays.
(2) Prohibition.--Adjustments under this subsection shall
not result in an increase in the national average loan rate
for any year.
Subtitle D--Sugar
SEC. 1401. SUGAR PROGRAM.
(a) In General.--Section 156 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7272) is amended
to read as follows:
``SEC. 156. SUGAR PROGRAM.
``(a) Sugarcane.--The Secretary shall make loans available
to processors of domestically grown sugarcane at a rate equal
to--
``(1) 18.00 cents per pound for raw cane sugar for the 2008
crop year;
``(2) 18.25 cents per pound for raw cane sugar for the 2009
crop year;
``(3) 18.50 cents per pound for raw cane sugar for the 2010
crop year;
``(4) 18.75 cents per pound for raw cane sugar for the 2011
crop year; and
``(5) 18.75 cents per pound for raw cane sugar for the 2012
crop year.
``(b) Sugar Beets.--The Secretary shall make loans
available to processors of domestically grown sugar beets at
a rate equal to--
``(1) 22.9 cents per pound for refined beet sugar for the
2008 crop year; and
``(2) a rate that is equal to 128.5 percent of the loan
rate per pound of raw cane sugar for the applicable crop year
under subsection (a) for each of the 2009 through 2012 crop
years.
``(c) Term of Loans.--
``(1) In general.--A loan under this section during any
fiscal year shall be made available not earlier than the
beginning of the fiscal year and shall mature at the earlier
of--
``(A) the end of the 9-month period beginning on the first
day of the first month after the month in which the loan is
made; or
``(B) the end of the fiscal year in which the loan is made.
``(2) Supplemental loans.--In the case of a loan made under
this section in the last 3 months of a fiscal year, the
processor may repledge the sugar as collateral for a second
loan in the subsequent fiscal year, except that the second
loan shall--
``(A) be made at the loan rate in effect at the time the
first loan was made; and
``(B) mature in 9 months less the quantity of time that the
first loan was in effect.
``(d) Loan Type; Processor Assurances.--
``(1) Nonrecourse loans.--The Secretary shall carry out
this section through the use of nonrecourse loans.
``(2) Processor assurances.--
``(A) In general.--The Secretary shall obtain from each
processor that receives a loan under this section such
assurances as the Secretary considers adequate to ensure that
the processor will provide payments to producers that are
proportional to the value of the loan received by the
processor for the sugar beets and sugarcane delivered by
producers to the processor.
``(B) Minimum payments.--
``(i) In general.--Subject to clause (ii), the Secretary
may establish appropriate minimum payments for purposes of
this paragraph.
``(ii) Limitation.--In the case of sugar beets, the minimum
payment established under clause (i) shall not exceed the
rate of payment provided for under the applicable contract
between a sugar beet producer and a sugar beet processor.
``(3) Administration.--The Secretary may not impose or
enforce any prenotification requirement, or similar
administrative requirement not otherwise in effect on May 13,
2002, that has the effect of preventing a processor from
electing to forfeit the loan collateral (of an acceptable
grade and quality) on the maturity of the loan.
``(e) Loans for In-Process Sugar.--
``(1) Definition of in-process sugars and syrups.--In this
subsection, the term `in-process sugars and syrups' does not
include raw sugar, liquid sugar, invert sugar, invert syrup,
or other finished product that is otherwise eligible for a
loan under subsection (a) or (b).
``(2) Availability.--The Secretary shall make nonrecourse
loans available to processors of a crop of domestically grown
sugarcane and sugar beets for in-process sugars and syrups
derived from the crop.
``(3) Loan rate.--The loan rate shall be equal to 80
percent of the loan rate applicable to raw cane sugar or
refined beet sugar, as determined by the Secretary on the
basis of the source material for the in-process sugars and
syrups.
``(4) Further processing on forfeiture.--
``(A) In general.--As a condition of the forfeiture of in-
process sugars and syrups serving as collateral for a loan
under paragraph (2), the processor shall, within such
reasonable time period as the Secretary may prescribe and at
no cost to the Commodity
[[Page H4487]]
Credit Corporation, convert the in-process sugars and syrups
into raw cane sugar or refined beet sugar of acceptable grade
and quality for sugars eligible for loans under subsection
(a) or (b).
``(B) Transfer to corporation.--Once the in-process sugars
and syrups are fully processed into raw cane sugar or refined
beet sugar, the processor shall transfer the sugar to the
Commodity Credit Corporation.
``(C) Payment to processor.--On transfer of the sugar, the
Secretary shall make a payment to the processor in an amount
equal to the amount obtained by multiplying--
``(i) the difference between--
``(I) the loan rate for raw cane sugar or refined beet
sugar, as appropriate; and
``(II) the loan rate the processor received under paragraph
(3); by
``(ii) the quantity of sugar transferred to the Secretary.
``(5) Loan conversion.--If the processor does not forfeit
the collateral as described in paragraph (4), but instead
further processes the in-process sugars and syrups into raw
cane sugar or refined beet sugar and repays the loan on the
in-process sugars and syrups, the processor may obtain a loan
under subsection (a) or (b) for the raw cane sugar or refined
beet sugar, as appropriate.
``(6) Term of loan.--The term of a loan made under this
subsection for a quantity of in-process sugars and syrups,
when combined with the term of a loan made with respect to
the raw cane sugar or refined beet sugar derived from the in-
process sugars and syrups, may not exceed 9 months,
consistent with subsection (c).
``(f) Avoiding Forfeitures; Corporation Inventory
Disposition.--
``(1) In general.--Subject to subsection (d)(3), to the
maximum extent practicable, the Secretary shall operate the
program established under this section at no cost to the
Federal Government by avoiding the forfeiture of sugar to the
Commodity Credit Corporation.
``(2) Inventory disposition.--
``(A) In general.--To carry out paragraph (1), the
Commodity Credit Corporation may accept bids to obtain raw
cane sugar or refined beet sugar in the inventory of the
Commodity Credit Corporation from (or otherwise make
available such commodities, on appropriate terms and
conditions, to) processors of sugarcane and processors of
sugar beets (acting in conjunction with the producers of the
sugarcane or sugar beets processed by the processors) in
return for the reduction of production of raw cane sugar or
refined beet sugar, as appropriate.
``(B) Bioenergy feedstock.--If a reduction in the quantity
of production accepted under subparagraph (A) involves sugar
beets or sugarcane that has already been planted, the sugar
beets or sugarcane so planted may not be used for any
commercial purpose other than as a bioenergy feedstock.
``(C) Additional authority.--The authority provided under
this paragraph is in addition to any authority of the
Commodity Credit Corporation under any other law.
``(g) Information Reporting.--
``(1) Duty of processors and refiners to report.--A
sugarcane processor, cane sugar refiner, and sugar beet
processor shall furnish the Secretary, on a monthly basis,
such information as the Secretary may require to administer
sugar programs, including the quantity of purchases of
sugarcane, sugar beets, and sugar, and production,
importation, distribution, and stock levels of sugar.
``(2) Duty of producers to report.--
``(A) Proportionate share states.--As a condition of a loan
made to a processor for the benefit of a producer, the
Secretary shall require each producer of sugarcane located in
a State (other than the Commonwealth of Puerto Rico) in which
there are in excess of 250 producers of sugarcane to report,
in the manner prescribed by the Secretary, the sugarcane
yields and acres planted to sugarcane of the producer.
``(B) Other states.--The Secretary may require each
producer of sugarcane or sugar beets not covered by
subparagraph (A) to report, in a manner prescribed by the
Secretary, the yields of, and acres planted to, sugarcane or
sugar beets, respectively, of the producer.
``(3) Duty of importers to report.--
``(A) In general.--Except as provided in subparagraph (B),
the Secretary shall require an importer of sugars, syrups, or
molasses to be used for human consumption or to be used for
the extraction of sugar for human consumption to report, in
the manner prescribed by the Secretary, the quantities of the
products imported by the importer and the sugar content or
equivalent of the products.
``(B) Tariff-rate quotas.--Subparagraph (A) shall not apply
to sugars, syrups, or molasses that are within the quantities
of tariff-rate quotas that are subject to the lower rate of
duties.
``(4) Collection of information on mexico.--
``(A) Collection.--The Secretary shall collect--
``(i) information on the production, consumption, stocks,
and trade of sugar in Mexico, including United States exports
of sugar to Mexico; and
``(ii) publicly available information on Mexican
production, consumption, and trade of high fructose corn
syrups.
``(B) Publication.--The data collected under subparagraph
(A) shall be published in each edition of the World
Agricultural Supply and Demand Estimates.
``(5) Penalty.--Any person willfully failing or refusing to
furnish the information required to be reported by paragraph
(1), (2), or (3), or furnishing willfully false information,
shall be subject to a civil penalty of not more than $10,000
for each such violation.
``(6) Monthly reports.--Taking into consideration the
information received under this subsection, the Secretary
shall publish on a monthly basis composite data on
production, imports, distribution, and stock levels of sugar.
``(h) Substitution of Refined Sugar.--For purposes of
Additional U.S. Note 6 to chapter 17 of the Harmonized Tariff
Schedule of the United States and the reexport programs and
polyhydric alcohol program administered by the Secretary, all
refined sugars (whether derived from sugar beets or
sugarcane) produced by cane sugar refineries and beet sugar
processors shall be fully substitutable for the export of
sugar and sugar-containing products under those programs.
``(i) Effective Period.--This section shall be effective
only for the 2008 through 2012 crops of sugar beets and
sugarcane.''.
(b) Transition.--The Secretary shall make loans for raw
cane sugar and refined beet sugar available for the 2007 crop
year on the terms and conditions provided in section 156 of
the Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7272), as in effect on the day before the date of
enactment of this Act.
SEC. 1402. UNITED STATES MEMBERSHIP IN THE INTERNATIONAL
SUGAR ORGANIZATION.
The Secretary shall work with the Secretary of State to
restore United States membership in the International Sugar
Organization not later than 1 year after the date of
enactment of this Act.
SEC. 1403. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.
(a) Definitions.--Section 359a of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359aa) is amended--
(1) by redesignating paragraphs (1), (2), (3), and (4) as
paragraphs (2), (4), (5), and (6), respectively;
(2) by inserting before paragraph (2) (as so redesignated)
the following:
``(1) Human consumption.--The term `human consumption',
when used in the context of a reference to sugar (whether in
the form of sugar, in-process sugar, syrup, molasses, or in
some other form) for human consumption, includes sugar for
use in human food, beverages, or similar products.''; and
(3) by inserting after paragraph (2) (as so redesignated)
the following:
``(3) Market.--
``(A) In general.--The term `market' means to sell or
otherwise dispose of in commerce in the United States.
``(B) Inclusions.--The term `market' includes--
``(i) the forfeiture of sugar under the loan program for
sugar established under section 156 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7272);
``(ii) with respect to any integrated processor and
refiner, the movement of raw cane sugar into the refining
process; and
``(iii) the sale of sugar for the production of ethanol or
other bioenergy product, if the disposition of the sugar is
administered by the Secretary under section 9010 of the Farm
Security and Rural Investment Act of 2002.
``(C) Marketing year.--Forfeited sugar described in
subparagraph (B)(i) shall be considered to have been marketed
during the crop year for which a loan is made under the loan
program described in that subparagraph.''.
(b) Flexible Marketing Allotments for Sugar.--Section 359b
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb)
is amended to read as follows:
``SEC. 359B. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.
``(a) Sugar Estimates.--
``(1) In general.--Not later than August 1 before the
beginning of each of the 2008 through 2012 crop years for
sugarcane and sugar beets, the Secretary shall estimate--
``(A) the quantity of sugar that will be subject to human
consumption in the United States during the crop year;
``(B) the quantity of sugar that would provide for
reasonable carryover stocks;
``(C) the quantity of sugar that will be available from
carry-in stocks for human consumption in the United States
during the crop year;
``(D) the quantity of sugar that will be available from the
domestic processing of sugarcane, sugar beets, and in-process
beet sugar; and
``(E) the quantity of sugars, syrups, and molasses that
will be imported for human consumption or to be used for the
extraction of sugar for human consumption in the United
States during the crop year, whether the articles are under a
tariff-rate quota or are in excess or outside of a tariff-
rate quota.
``(2) Exclusion.--The estimates under this subsection shall
not apply to sugar imported for the production of polyhydric
alcohol or to any sugar refined and reexported in refined
form or in products containing sugar.
``(3) Reestimates.--The Secretary shall make reestimates of
sugar consumption, stocks, production, and imports for a crop
year as necessary, but not later than the beginning of each
of the second through fourth quarters of the crop year.
``(b) Sugar Allotments.--
``(1) Establishment.--By the beginning of each crop year,
the Secretary shall establish for that crop year appropriate
allotments under section 359c for the marketing by processors
of sugar processed from sugar cane or sugar beets or in-
process beet sugar (whether
[[Page H4488]]
the sugar beets or in-process beet sugar was produced
domestically or imported) at a level that is--
``(A) sufficient to maintain raw and refined sugar prices
above forfeiture levels so that there will be no forfeitures
of sugar to the Commodity Credit Corporation under the loan
program for sugar established under section 156 of the
Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7272); but
``(B) not less than 85 percent of the estimated quantity of
sugar for domestic human consumption for the crop year.
``(2) Products.--The Secretary may include sugar products,
the majority content of which is sucrose for human
consumption, derived from sugar cane, sugar beets, molasses,
or sugar in the allotments established under paragraph (1) if
the Secretary determines it to be appropriate for purposes of
this part.
``(c) Coverage of Allotments.--
``(1) In general.--The marketing allotments under this part
shall apply to the marketing by processors of sugar intended
for domestic human consumption that has been processed from
sugar cane, sugar beets, or in-process beet sugar, whether
such sugar beets or in-process beet sugar was produced
domestically or imported.
``(2) Exceptions.--Consistent with the administration of
marketing allotments for each of the 2002 through 2007 crop
years, the marketing allotments shall not apply to sugar
sold--
``(A) to facilitate the exportation of the sugar to a
foreign country, except that the exports of sugar shall not
be eligible to receive credits under reexport programs for
refined sugar or sugar containing products administered by
the Secretary;
``(B) to enable another processor to fulfill an allocation
established for that processor; or
``(C) for uses other than domestic human consumption,
except for the sale of sugar for the production of ethanol or
other bioenergy if the disposition of the sugar is
administered by the Secretary under section 9010 of the Farm
Security and Rural Investment Act of 2002.
``(3) Requirement.--The sale of sugar described in
paragraph (2)(B) shall be--
``(A) made prior to May 1; and
``(B) reported to the Secretary.
``(d) Prohibitions.--
``(1) In general.--During all or part of any crop year for
which marketing allotments have been established, no
processor of sugar beets or sugarcane shall market for
domestic human consumption a quantity of sugar in excess of
the allocation established for the processor, except--
``(A) to enable another processor to fulfill an allocation
established for that other processor; or
``(B) to facilitate the exportation of the sugar.
``(2) Civil penalty.--Any processor who knowingly violates
paragraph (1) shall be liable to the Commodity Credit
Corporation for a civil penalty in an amount equal to 3 times
the United States market value, at the time of the commission
of the violation, of that quantity of sugar involved in the
violation.''.
(c) Establishment of Flexible Marketing Allotments.--
Section 359c of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1359cc) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Overall Allotment Quantity.--
``(1) In general.--The Secretary shall establish the
overall quantity of sugar to be allotted for the crop year
(referred to in this part as the `overall allotment
quantity') at a level that is--
``(A) sufficient to maintain raw and refined sugar prices
above forfeiture levels to avoid forfeiture of sugar to the
Commodity Credit Corporation; but
``(B) not less than a quantity equal to 85 percent of the
estimated quantity of sugar for domestic human consumption
for the crop year.
``(2) Adjustment.--Subject to paragraph (1), the Secretary
shall adjust the overall allotment quantity to maintain--
``(A) raw and refined sugar prices above forfeiture levels
to avoid the forfeiture of sugar to the Commodity Credit
Corporation; and
``(B) adequate supplies of raw and refined sugar in the
domestic market.'';
(2) in subsection (d)(2), by inserting ``or in-process beet
sugar'' before the period at the end;
(3) in subsection (g)(1)--
(A) by striking ``(1) in general.--The Secretary'' and
inserting the following:
``(1) Adjustments.--
``(A) In general.--Subject to subparagraph (B), the
Secretary''; and
(B) by adding at the end the following:
``(B) Limitation.--In carrying out subparagraph (A), the
Secretary may not reduce the overall allotment quantity to a
quantity of less than 85 percent of the estimated quantity of
sugar for domestic human consumption for the crop year.'';
and
(4) by striking subsection (h).
(d) Allocation of Marketing Allotments.--Section 359d(b) of
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359dd(b))
is amended--
(1) in paragraph (1)(F), by striking ``Except as otherwise
provided in section 359f(c)(8), if'' and inserting ``If'';
and
(2) in paragraph (2), by striking subparagraphs (G), (H),
and (I) and inserting the following:
``(G) Sale of factories of a processor to another
processor.--
``(i) Effect of sale.--Subject to subparagraphs (E) and
(F), if 1 or more factories of a processor of beet sugar (but
not all of the assets of the processor) are sold to another
processor of beet sugar during a crop year, the Secretary
shall assign a pro rata portion of the allocation of the
seller to the allocation of the buyer to reflect the
historical contribution of the production of the sold 1 or
more factories to the total allocation of the seller, unless
the buyer and the seller have agreed upon the transfer of a
different portion of the allocation of the seller, in which
case, the Secretary shall transfer that portion agreed upon
by the buyer and seller.
``(ii) Application of allocation.--The assignment of the
allocation under clause (i) shall apply--
``(I) during the remainder of the crop year for which the
sale described in clause (i) occurs; and
``(II) during each subsequent crop year.
``(iii) Use of other factories to fill allocation.--If the
assignment of the allocation under clause (i) to the buyer
for the 1 or more purchased factories cannot be filled by the
production of the 1 or more purchased factories, the
remainder of the allocation may be filled by beet sugar
produced by the buyer from other factories of the buyer.
``(H) New entrants starting production, reopening, or
acquiring an existing factory with production history.--
``(i) Definition of new entrant.--
``(I) In general.--In this subparagraph, the term `new
entrant' means an individual, corporation, or other entity
that--
``(aa) does not have an allocation of the beet sugar
allotment under this part;
``(bb) is not affiliated with any other individual,
corporation, or entity that has an allocation of beet sugar
under this part (referred to in this clause as a `third
party'); and
``(cc) will process sugar beets produced by sugar beet
growers under contract with the new entrant for the
production of sugar at the new or re-opened factory that is
the basis for the new entrant allocation.
``(II) Affiliation.--For purposes of subclause (I)(bb), a
new entrant and a third party shall be considered to be
affiliated if--
``(aa) the third party has an ownership interest in the new
entrant;
``(bb) the new entrant and the third party have owners in
common;
``(cc) the third party has the ability to exercise control
over the new entrant by organizational rights, contractual
rights, or any other means;
``(dd) the third party has a contractual relationship with
the new entrant by which the new entrant will make use of the
facilities or assets of the third party; or
``(ee) there are any other similar circumstances by which
the Secretary determines that the new entrant and the third
party are affiliated.
``(ii) Allocation for a new entrant that has constructed a
new factory or reopened a factory that was not operated since
before 1998.--If a new entrant constructs a new sugar beet
processing factory, or acquires and reopens a sugar beet
processing factory that last processed sugar beets prior to
the 1998 crop year and there is no allocation currently
associated with the factory, the Secretary shall--
``(I) assign an allocation for beet sugar to the new
entrant that provides a fair and equitable distribution of
the allocations for beet sugar so as to enable the new
entrant to achieve a factory utilization rate comparable to
the factory utilization rates of other similarly-situated
processors; and
``(II) reduce the allocations for beet sugar of all other
processors on a pro rata basis to reflect the allocation to
the new entrant.
``(iii) Allocation for a new entrant that has acquired an
existing factory with a production history.--
``(I) In general.--If a new entrant acquires an existing
factory that has processed sugar beets from the 1998 or
subsequent crop year and has a production history, on the
mutual agreement of the new entrant and the company currently
holding the allocation associated with the factory, the
Secretary shall transfer to the new entrant a portion of the
allocation of the current allocation holder to reflect the
historical contribution of the production of the 1 or more
sold factories to the total allocation of the current
allocation holder, unless the new entrant and current
allocation holder have agreed upon the transfer of a
different portion of the allocation of the current allocation
holder, in which case, the Secretary shall transfer that
portion agreed upon by the new entrant and the current
allocation holder.
``(II) Prohibition.--In the absence of a mutual agreement
described in subclause (I), the new entrant shall be
ineligible for a beet sugar allocation.
``(iv) Appeals.--Any decision made under this subsection
may be appealed to the Secretary in accordance with section
359i.''.
(e) Reassignment of Deficits.--Section 359e(b) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is
amended in paragraphs (1)(D) and (2)(C), by inserting ``of
raw cane sugar'' after ``imports'' each place it appears.
(f) Provisions Applicable to Producers.--Section 359f(c) of
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(c))
is amended--
(1) by striking paragraph (8);
[[Page H4489]]
(2) by redesignating paragraphs (1) through (7) as
paragraphs (2) through (8), respectively;
(3) by inserting before paragraph (2) (as so redesignated)
the following:
``(1) Definition of seed.--
``(A) In general.--In this subsection, the term `seed'
means only those varieties of seed that are dedicated to the
production of sugarcane from which is produced sugar for
human consumption.
``(B) Exclusion.--The term `seed' does not include seed of
a high-fiber cane variety dedicated to other uses, as
determined by the Secretary'';
(4) in paragraph (3) (as so redesignated)--
(A) in the first sentence--
(i) by striking ``paragraph (1)'' and inserting ``paragraph
(2)''; and
(ii) by inserting ``sugar produced from'' after ``quantity
of''; and
(B) in the second sentence, by striking ``paragraph (7)''
and inserting ``paragraph (8)'';
(5) in the first sentence of paragraph (6)(C) (as so
redesignated), by inserting ``for sugar'' before ``in excess
of the farm's proportionate share''; and
(6) in paragraph (8) (as so redesignated), by inserting
``sugar from'' after ``the amount of''.
(g) Special Rules.--Section 359g of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359gg) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) Transfer of Acreage Base History.--
``(1) Transfer authorized.--For the purpose of establishing
proportionate shares for sugarcane farms under section
359f(c), the Secretary, on application of any producer, with
the written consent of all owners of a farm, may transfer the
acreage base history of the farm to any other parcels of land
of the applicant.
``(2) Converted acreage base.--
``(A) In general.--Sugarcane acreage base established under
section 359f(c) that has been or is converted to
nonagricultural use on or after May 13, 2002, may be
transferred to other land suitable for the production of
sugarcane that can be delivered to a processor in a
proportionate share State in accordance with this paragraph.
``(B) Notification.--Not later than 90 days after the
Secretary becomes aware of a conversion of any sugarcane
acreage base to a nonagricultural use, the Secretary shall
notify the 1 or more affected landowners of the
transferability of the applicable sugarcane acreage base.
``(C) Initial transfer period.--The owner of the base
attributable to the acreage at the time of the conversion
shall be afforded 90 days from the date of the receipt of the
notification under subparagraph (B) to transfer the base to 1
or more farms owned by the owner.
``(D) Grower of record.--If a transfer under subparagraph
(C) cannot be accomplished during the period specified in
that subparagraph, the grower of record with regard to the
acreage base on the date on which the acreage was converted
to nonagricultural use shall--
``(i) be notified; and
``(ii) have 90 days from the date of the receipt of the
notification to transfer the base to 1 or more farms operated
by the grower.
``(E) Pool distribution.--
``(i) In general.--If transfers under subparagraphs (B) and
(C) cannot be accomplished during the periods specified in
those subparagraphs, the county committee of the Farm Service
Agency for the applicable county shall place the acreage base
in a pool for possible assignment to other farms.
``(ii) Acceptance of requests.--After providing reasonable
notice to farm owners, operators, and growers of record in
the county, the county committee shall accept requests from
owners, operators, and growers of record in the county.
``(iii) Assignment.--The county committee shall assign the
acreage base to other farms in the county that are eligible
and capable of accepting the acreage base, based on a random
drawing from among the requests received under clause (ii).
``(F) Statewide reallocation.--
``(i) In general.--Any acreage base remaining unassigned
after the transfers and processes described in subparagraphs
(A) through (E) shall be made available to the State
committee of the Farm Service Agency for allocation among the
remaining county committees in the State representing
counties with farms eligible for assignment of the base,
based on a random drawing.
``(ii) Allocation.--Any county committee receiving acreage
base under this subparagraph shall allocate the acreage base
to eligible farms using the process described in subparagraph
(E).
``(G) Status of reassigned base.--After acreage base has
been reassigned in accordance with this subparagraph, the
acreage base shall--
``(i) remain on the farm; and
``(ii) be subject to the transfer provisions of paragraph
(1).''; and
(2) in subsection (d)--
(A) in paragraph (1)--
(i) by inserting ``affected'' before ``crop-share owners''
each place it appears; and
(ii) by striking ``, and from the processing company
holding the applicable allocation for such shares,''; and
(B) in paragraph (2), by striking ``based on'' and all that
follows through the end of subparagraph (B) and inserting
``based on--
``(A) the number of acres of sugarcane base being
transferred; and
``(B) the pro rata amount of allocation at the processing
company holding the applicable allocation that equals the
contribution of the grower to allocation of the processing
company for the sugarcane acreage base being transferred.''.
(h) Appeals.--Section 359i of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1359ii) is amended--
(1) in subsection (a), by inserting ``or 359g(d)'' after
``359f''; and
(2) by striking subsection (c).
(i) Reallocating Sugar Quota Import Shortfalls.--Section
359k of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1359kk) is repealed.
(j) Administration of Tariff Rate Quotas.--Part VII of
subtitle B of title III of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1359aa) (as amended by subsection (i)) is
amended by adding at the end the following:
``SEC. 359K. ADMINISTRATION OF TARIFF RATE QUOTAS.
``(a) Establishment.--
``(1) In general.--Except as provided in paragraph (2) and
notwithstanding any other provision of law, at the beginning
of the quota year, the Secretary shall establish the tariff-
rate quotas for raw cane sugar and refined sugars at the
minimum level necessary to comply with obligations under
international trade agreements that have been approved by
Congress.
``(2) Exception.--Paragraph (1) shall not apply to
specialty sugar.
``(b) Adjustment.--
``(1) Before april 1.--Before April 1 of each fiscal year,
if there is an emergency shortage of sugar in the United
States market that is caused by a war, flood, hurricane, or
other natural disaster, or other similar event as determined
by the Secretary--
``(A) the Secretary shall take action to increase the
supply of sugar in accordance with sections 359c(b)(2) and
359e(b), including an increase in the tariff-rate quota for
raw cane sugar to accommodate the reassignment to imports;
and
``(B) if there is still a shortage of sugar in the United
States market, and marketing of domestic sugar has been
maximized, and domestic raw cane sugar refining capacity has
been maximized, the Secretary may increase the tariff-rate
quota for refined sugars sufficient to accommodate the supply
increase, if the further increase will not threaten to result
in the forfeiture of sugar pledged as collateral for a loan
under section 156 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7272).
``(2) On or after april 1.--On or after April 1 of each
fiscal year--
``(A) the Secretary may take action to increase the supply
of sugar in accordance with sections 359c(b)(2) and 359e(b),
including an increase in the tariff-rate quota for raw cane
sugar to accommodate the reassignment to imports; and
``(B) if there is still a shortage of sugar in the United
States market, and marketing of domestic sugar has been
maximized, the Secretary may increase the tariff-rate quota
for raw cane sugar if the further increase will not threaten
to result in the forfeiture of sugar pledged as collateral
for a loan under section 156 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7272).''.
(k) Period of Effectiveness.--Part VII of subtitle B of
title III of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1359aa) (as amended by subsection (j)) is amended by
adding at the end the following:
``SEC. 359L. PERIOD OF EFFECTIVENESS.
``(a) In General.--This part shall be effective only for
the 2008 through 2012 crop years for sugar.
``(b) Transition.--The Secretary shall administer flexible
marketing allotments for sugar for the 2007 crop year for
sugar on the terms and conditions provided in this part as in
effect on the day before the date of enactment of this
section.''.
SEC. 1404. STORAGE FACILITY LOANS.
Section 1402(c) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 7971(c)) is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) by redesignating paragraph (2) as paragraph (3);
(3) by inserting after paragraph (1) the following:
``(2) not include any penalty for prepayment; and''; and
(4) in paragraph (3) (as redesignated by paragraph (2)), by
inserting ``other'' after ``on such''.
SEC. 1405. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS.
Subtitle E of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7281 et seq.) is amended by
adding at the end the following:
``SEC. 167. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS.
``(a) Initial Crop Years.--Notwithstanding any other
provision of law, for each of the 2008 through 2011 crop
years, the Commodity Credit Corporation shall establish rates
for the storage of forfeited sugar in an amount that is not
less than--
``(1) in the case of refined sugar, 15 cents per
hundredweight of refined sugar per month; and
``(2) in the case of raw cane sugar, 10 cents per
hundredweight of raw cane sugar per month.
[[Page H4490]]
``(b) Subsequent Crop Years.--For each of the 2012 and
subsequent crop years, the Commodity Credit Corporation shall
establish rates for the storage of forfeited sugar in the
same manner as was used on the day before the date of
enactment of this section.''.
Subtitle E--Dairy
SEC. 1501. DAIRY PRODUCT PRICE SUPPORT PROGRAM.
(a) Definition of Net Removals.--In this section, the term
``net removals'' means--
(1) the sum of--
(A) the quantity of a product described in subsection (b)
purchased by the Commodity Credit Corporation under this
section; and
(B) the quantity of the product exported under section 153
of the Food Security Act of 1985 (15 U.S.C. 713a-14); less
(2) the quantity of the product sold for unrestricted use
by the Commodity Credit Corporation.
(b) Support Activities.--During the period beginning on
January 1, 2008, and ending December 31, 2012, the Secretary
shall support the price of cheddar cheese, butter, and nonfat
dry milk through the purchase of such products made from milk
produced in the United States.
(c) Purchase Price.--To carry out subsection (b) during the
period specified in that subsection, the Secretary shall
purchase--
(1) cheddar cheese in blocks at not less than $1.13 per
pound;
(2) cheddar cheese in barrels at not less than $1.10 per
pound;
(3) butter at not less than $1.05 per pound; and
(4) nonfat dry milk at not less than $0.80 per pound.
(d) Temporary Price Adjustment to Avoid Excess
Inventories.--
(1) Adjustments authorized.--The Secretary may adjust the
minimum purchase prices established under subsection (c) only
as permitted under this subsection.
(2) Cheese inventories in excess of 200,000,000 pounds.--If
net removals for a period of 12 consecutive months exceed
200,000,000 pounds of cheese, but do not exceed 400,000,000
pounds, the Secretary may reduce the purchase prices under
paragraphs (1) and (2) of subsection (c) during the
immediately following month by not more than 10 cents per
pound.
(3) Cheese inventories in excess of 400,000,000 pounds.--If
net removals for a period of 12 consecutive months exceed
400,000,000 pounds of cheese, the Secretary may reduce the
purchase prices under paragraphs (1) and (2) of subsection
(c) during the immediately following month by not more than
20 cents per pound.
(4) Butter inventories in excess of 450,000,000 pounds.--If
net removals for a period of 12 consecutive months exceed
450,000,000 pounds of butter, but do not exceed 650,000,000
pounds, the Secretary may reduce the purchase price under
subsection (c)(3) during the immediately following month by
not more than 10 cents per pound.
(5) Butter inventories in excess of 650,000,000 pounds.--If
net removals for a period of 12 consecutive months exceed
650,000,000 pounds of butter, the Secretary may reduce the
purchase price under subsection (c)(3) during the immediately
following month by not more than 20 cents per pound.
(6) Nonfat dry milk inventories in excess of 600,000,000
pounds.--If net removals for a period of 12 consecutive
months exceed 600,000,000 pounds of nonfat dry milk, but do
not exceed 800,000,000 pounds, the Secretary may reduce the
purchase price under subsection (c)(4) during the immediately
following month by not more than 5 cents per pound.
(7) Nonfat dry milk inventories in excess of 800,000,000
pounds.--If net removals for a period of 12 consecutive
months exceed 800,000,000 pounds of nonfat dry milk, the
Secretary may reduce the purchase price under subsection
(c)(4) during the immediately following month by not more
than 10 cents per pound.
(e) Uniform Purchase Price.--The prices that the Secretary
pays for cheese, butter, or nonfat dry milk, respectively,
under subsection (b) shall be uniform for all regions of the
United States.
(f) Sales From Inventories.--In the case of each commodity
specified in subsection (c) that is available for
unrestricted use in the inventory of the Commodity Credit
Corporation, the Secretary may sell the commodity at the
market prices prevailing for that commodity at the time of
sale, except that the sale price may not be less than 110
percent of the minimum purchase price specified in subsection
(c) for that commodity.
SEC. 1502. DAIRY FORWARD PRICING PROGRAM.
(a) Program Required.--The Secretary shall establish a
program under which milk producers and cooperative
associations of producers are authorized to voluntarily enter
into forward price contracts with milk handlers.
(b) Minimum Milk Price Requirements.--Payments made by milk
handlers to milk producers and cooperative associations of
producers, and prices received by milk producers and
cooperative associations, in accordance with the terms of a
forward price contract authorized by subsection (a), shall be
treated as satisfying--
(1) all uniform and minimum milk price requirements of
subparagraphs (B) and (F) of paragraph (5) of section 8c of
the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted
with amendments by the Agricultural Marketing Agreement Act
of 1937; and
(2) the total payment requirement of subparagraph (C) of
that paragraph.
(c) Milk Covered by Program.--
(1) Covered milk.--The program shall apply only with
respect to the marketing of federally regulated milk that--
(A) is not classified as Class I milk or otherwise intended
for fluid use; and
(B) is in the current of interstate or foreign commerce or
directly burdens, obstructs, or affects interstate or foreign
commerce in federally regulated milk.
(2) Relation to class i milk.--To assist milk handlers in
complying with paragraph (1)(A) without having to segregate
or otherwise individually track the source and disposition of
milk, a milk handler may allocate milk receipts from
producers, cooperatives, and other sources that are not
subject to a forward contract to satisfy the obligations of
the handler with regard to Class I milk usage.
(d) Voluntary Program.--
(1) In general.--A milk handler may not require
participation in a forward pricing contract as a condition of
the handler receiving milk from a producer or cooperative
association of producers.
(2) Pricing.--A producer or cooperative association
described in paragraph (1) may continue to have their milk
priced in accordance with the minimum payment provisions of
the Federal milk marketing order.
(3) Complaints.--
(A) In general.--The Secretary shall investigate complaints
made by producers or cooperative associations of coercion by
handlers to enter into forward contracts.
(B) Action.--If the Secretary finds evidence of coercion,
the Secretary shall take appropriate action.
(e) Duration.--
(1) New contracts.--No forward price contract may be
entered into under the program established under this section
after September 30, 2012.
(2) Application.--No forward contract entered into under
the program may extend beyond September 30, 2015.
SEC. 1503. DAIRY EXPORT INCENTIVE PROGRAM.
(a) Extension.--Section 153(a) of the Food Security Act of
1985 (15 U.S.C. 713a-14(a)) is amended by striking ``2007''
and inserting ``2012''.
(b) Compliance With Trade Agreements.--Section 153 of the
Food Security Act of 1985 (15 U.S.C. 713a-14) is amended--
(1) in subsection (c), by striking paragraph (3) and
inserting the following:
``(3) the maximum volume of dairy product exports allowable
consistent with the obligations of the United States under
the Uruguay Round Agreements approved under section 101 of
the Uruguay Round Agreements Act (19 U.S.C. 3511) is exported
under the program each year (minus the volume sold under
section 1163 of this Act during that year), except to the
extent that the export of such a volume under the program
would, in the judgment of the Secretary, exceed the
limitations on the value permitted under subsection (f);
and''; and.
(2) in subsection (f), by striking paragraph (1) and
inserting the following:
``(1) Funds and commodities.--Except as provided in
paragraph (2), the Commodity Credit Corporation shall in each
year use money and commodities for the program under this
section in the maximum amount consistent with the obligations
of the United States under the Uruguay Round Agreements
approved under section 101 of the Uruguay Round Agreements
Act (19 U.S.C. 3511), minus the amount expended under section
1163 of this Act during that year.''.
SEC. 1504. REVISION OF FEDERAL MARKETING ORDER AMENDMENT
PROCEDURES.
Section 8c of the Agricultural Adjustment Act (7 U.S.C.
608c), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, is amended by striking
subsection (17) and inserting the following:
``(17) Provisions applicable to amendments.--
``(A) Applicability to amendments.--The provisions of this
section and section 8d applicable to orders shall be
applicable to amendments to orders.
``(B) Supplemental rules of practice.--
``(i) In general.--Not later than 60 days after the date of
enactment of this subparagraph, the Secretary shall issue,
using informal rulemaking, supplemental rules of practice to
define guidelines and timeframes for the rulemaking process
relating to amendments to orders.
``(ii) Issues.--At a minimum, the supplemental rules of
practice shall establish--
``(I) proposal submission requirements;
``(II) pre-hearing information session specifications;
``(III) written testimony and data request requirements;
``(IV) public participation timeframes; and
``(V) electronic document submission standards.
``(iii) Effective date.--The supplemental rules of practice
shall take effect not later than 120 days after the date of
enactment of this subparagraph, as determined by the
Secretary.
``(C) Hearing timeframes.--
``(i) In general.--Not more than 30 days after the receipt
of a proposal for an amendment hearing regarding a milk
marketing order, the Secretary shall--
``(I) issue a notice providing an action plan and expected
timeframes for completion of the hearing not more than 120
days after the date of the issuance of the notice;
``(II)(aa) issue a request for additional information to be
used by the Secretary in
[[Page H4491]]
making a determination regarding the proposal; and
``(bb) if the additional information is not provided to the
Secretary within the timeframe requested by the Secretary,
issue a denial of the request; or
``(III) issue a denial of the request.
``(ii) Requirement.--A post-hearing brief may be filed
under this paragraph not later than 60 days after the date of
an amendment hearing regarding a milk marketing order.
``(iii) Recommended decisions.--A recommended decision on a
proposed amendment to an order shall be issued not later than
90 days after the deadline for the submission of post-hearing
briefs.
``(iv) Final decisions.--A final decision on a proposed
amendment to an order shall be issued not later than 60 days
after the deadline for submission of comments and exceptions
to the recommended decision issued under clause (iii).
``(D) Industry assessments.--If the Secretary determines it
is necessary to improve or expedite rulemaking under this
subsection, the Secretary may impose an assessment on the
affected industry to supplement appropriated funds for the
procurement of service providers, such as court reporters.
``(E) Use of informal rulemaking.--The Secretary may use
rulemaking under section 553 of title 5, United States Code,
to amend orders, other than provisions of orders that
directly affect milk prices.
``(F) Avoiding duplication.--The Secretary shall not be
required to hold a hearing on any amendment proposed to be
made to a milk marketing order in response to an application
for a hearing on the proposed amendment if--
``(i) the application requesting the hearing is received by
the Secretary not later than 90 days after the date on which
the Secretary has announced the decision on a previously
proposed amendment to that order; and
``(ii) the 2 proposed amendments are essentially the same,
as determined by the Secretary.
``(G) Monthly feed and fuel costs for make allowances.--As
part of any hearing to adjust make allowances under marketing
orders commencing prior to September 30, 2012, the Secretary
shall--
``(i) determine the average monthly prices of feed and fuel
incurred by dairy producers in the relevant marketing area;
``(ii) consider the most recent monthly feed and fuel price
data available; and
``(iii) consider those prices in determining whether or not
to adjust make allowances.''.
SEC. 1505. DAIRY INDEMNITY PROGRAM.
Section 3 of Public Law 90-484 (7 U.S.C. 450l) is amended
by striking ``2007'' and inserting ``2012''.
SEC. 1506. MILK INCOME LOSS CONTRACT PROGRAM.
(a) Definitions.--In this section:
(1) Class i milk.--The term ``Class I milk'' means milk
(including milk components) classified as Class I milk under
a Federal milk marketing order.
(2) Eligible production.--The term ``eligible production''
means milk produced by a producer in a participating State.
(3) Federal milk marketing order.--The term ``Federal milk
marketing order'' means an order issued under section 8c of
the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted
with amendments by the Agricultural Marketing Agreement Act
of 1937.
(4) Participating state.--The term ``participating State''
means each State.
(5) Producer.--The term ``producer'' means an individual or
entity that directly or indirectly (as determined by the
Secretary)--
(A) shares in the risk of producing milk; and
(B) makes contributions (including land, labor, management,
equipment, or capital) to the dairy farming operation of the
individual or entity that are at least commensurate with the
share of the individual or entity of the proceeds of the
operation.
(b) Payments.--The Secretary shall offer to enter into
contracts with producers on a dairy farm located in a
participating State under which the producers receive
payments on eligible production.
(c) Amount.--Payments to a producer under this section
shall be calculated by multiplying (as determined by the
Secretary)--
(1) the payment quantity for the producer during the
applicable month established under subsection (e);
(2) the amount equal to--
(A) $16.94 per hundredweight, as adjusted under subsection
(d); less
(B) the Class I milk price per hundredweight in Boston
under the applicable Federal milk marketing order; by
(3)(A) for the period beginning October 1, 2007, and ending
September 30, 2008, 34 percent;
(B) for the period beginning October 1, 2008, and ending
August 31, 2012, 45 percent; and
(C) for the period beginning September 1, 2012, and
thereafter, 34 percent.
(d) Payment Rate Adjustment for Feed Prices.--
(1) Initial adjustment authority.--During the period
beginning on January 1, 2008, and ending on August 31, 2012,
if the National Average Dairy Feed Ration Cost for a month
during that period is greater than $7.35 per hundredweight,
the amount specified in subsection (c)(2)(A) used to
determine the payment rate for that month shall be increased
by 45 percent of the percentage by which the National Average
Dairy Feed Ration Cost exceeds $7.35 per hundredweight.
(2) Subsequent adjustment authority.--For any month
beginning on or after September 1, 2012, if the National
Average Dairy Feed Ration Cost for the month is greater than
$9.50 per hundredweight, the amount specified in subsection
(c)(2)(A) used to determine the payment rate for that month
shall be increased by 45 percent of the percentage by which
the National Average Dairy Feed Ration Cost exceeds $9.50 per
hundredweight.
(3) National average dairy feed ration cost.--For each
month, the Secretary shall calculate a National Average Dairy
Feed Ration Cost per hundredweight using the same procedures
(adjusted to a hundredweight basis) used to calculate the
feed components of the estimated price of 16% Mixed Dairy
Feed per pound noted on page 33 of the USDA March 2008
Agricultural Prices publication (including the data and
factors noted in footnote 4).
(e) Payment Quantity.--
(1) In general.--Subject to paragraph (2), the payment
quantity for a producer during the applicable month under
this section shall be equal to the quantity of eligible
production marketed by the producer during the month.
(2) Limitation.--
(A) In general.--The payment quantity for all producers on
a single dairy operation for which the producers receive
payments under subsection (b) shall not exceed--
(i) for the period beginning October 1, 2007, and ending
September 30, 2008, 2,400,000 pounds;
(ii) for the period beginning October 1, 2008, and ending
August 31, 2012, 2,985,000 pounds for each fiscal year; and
(iii) effective beginning September 1, 2012, 2,400,000
pounds per fiscal year.
(B) Standards.--For purposes of determining whether
producers are producers on separate dairy operations or a
single dairy operation, the Secretary shall apply the same
standards as were applied in implementing the dairy program
under section 805 of the Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies Appropriations
Act, 2001 (as enacted into law by Public Law 106-387; 114
Stat. 1549A-50).
(3) Reconstitution.--The Secretary shall ensure that a
producer does not reconstitute a dairy operation for the sole
purpose of receiving additional payments under this section.
(f) Payments.--A payment under a contract under this
section shall be made on a monthly basis not later than 60
days after the last day of the month for which the payment is
made.
(g) Signup.--The Secretary shall offer to enter into
contracts under this section during the period beginning on
the date that is 90 days after the date of enactment of this
Act and ending on September 30, 2012.
(h) Duration of Contract.--
(1) In general.--Except as provided in paragraph (2), any
contract entered into by producers on a dairy farm under this
section shall cover eligible production marketed by the
producers on the dairy farm during the period starting with
the first day of month the producers on the dairy farm enter
into the contract and ending on September 30, 2012.
(2) Violations.--If a producer violates the contract, the
Secretary may--
(A) terminate the contract and allow the producer to retain
any payments received under the contract; or
(B) allow the contract to remain in effect and require the
producer to repay a portion of the payments received under
the contract based on the severity of the violation.
SEC. 1507. DAIRY PROMOTION AND RESEARCH PROGRAM.
(a) Extension of Dairy Promotion and Research Authority.--
Section 113(e)(2) of the Dairy Production Stabilization Act
of 1983 (7 U.S.C. 4504(e)(2)) is amended by striking ``2007''
and inserting ``2012''.
(b) Definition of United States for Promotion Program.--
Section 111 of the Dairy Production Stabilization Act of 1983
(7 U.S.C. 4502) is amended--
(1) by striking subsection (l) and inserting the following:
``(l) the term `United States', when used in a geographical
sense, means all of the States, the District of Columbia, and
the Commonwealth of Puerto Rico;''; and
(2) in subsection (m), by striking ``(as defined in
subsection (l))''.
(c) Definition of United States for Research Program.--
Section 130 of the Dairy Production Stabilization Act of 1983
(7 U.S.C. 4531)) is amended by striking paragraph (12) and
inserting the following:
``(12) the term `United States', when used in a
geographical sense, means all of the States, the District of
Columbia, and the Commonwealth of Puerto Rico.''.
(d) Assessment Rate for Imported Dairy Products.--Section
113(g) of the Dairy Production Stabilization Act of 1983 (7
U.S.C. 4504(g)) is amended by striking paragraph (3) and
inserting the following:
``(3) Rate.--
``(A) In general.--The rate of assessment for milk produced
in the United States prescribed by the order shall be 15
cents per hundredweight of milk for commercial use or the
equivalent thereof, as determined by the Secretary.
``(B) Imported dairy products.--The rate of assessment for
imported dairy products prescribed by the order shall be 7.5
cents per hundredweight of milk for commercial use or the
equivalent thereof, as determined by the Secretary.''.
[[Page H4492]]
(e) Time and Method of Importer Payments.--Section
113(g)(6) of the Dairy Production Stabilization Act of 1983
(7 U.S.C. 4504(g)(6)) is amended--
(1) by striking subparagraph (B); and
(2) by redesignating subparagraph (C) as subparagraph (B).
(f) Refund of Assessments on Certain Imported Dairy
Products.--Section 113(g) of the Dairy Production
Stabilization Act of 1983 (7 U.S.C. 4504(g)) is amended by
adding at the end the following:
``(7) Refund of assessments on certain imported products.--
``(A) In general.--An importer shall be entitled to a
refund of any assessment paid under this subsection on
imported dairy products imported under a contract entered
into prior to the date of enactment of the Food,
Conservation, and Energy Act of 2008.
``(B) Expiration.--Refunds under subparagraph (A) shall
expire 1 year after the date of enactment of the Food,
Conservation, and Energy Act of 2008.''.
SEC. 1508. REPORT ON DEPARTMENT OF AGRICULTURE REPORTING
PROCEDURES FOR NONFAT DRY MILK.
Not later than 90 days after the date of enactment of this
Act, the Secretary shall submit to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a
report regarding Department of Agriculture reporting
procedures for nonfat dry milk and the impact of the
procedures on Federal milk marketing order minimum prices
during the period beginning on July 1, 2006, and ending on
the date of enactment of this Act.
SEC. 1509. FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.
(a) Establishment.--Subject to the availability of
appropriations to carry out this section, the Secretary shall
establish a commission to be known as the ``Federal Milk
Marketing Order Review Commission'' (referred to in this
section as the ``commission''), which shall conduct a
comprehensive review and evaluation of--
(1) the Federal milk marketing order system in effect on
the date of establishment of the commission; and
(2) non-Federal milk marketing order systems.
(b) Elements of Review and Evaluation.--As part of the
review and evaluation under subsection (a), the commission
shall consider legislative and regulatory options for--
(1) ensuring that the competitiveness of dairy products
with other competing products in the marketplace is preserved
and enhanced;
(2) enhancing the competitiveness of American dairy
producers in world markets;
(3) ensuring the competitiveness and transparency in dairy
pricing;
(4) streamlining and expediting the process by which
amendments to Federal milk market orders are adopted;
(5) simplifying the Federal milk marketing order system;
(6) evaluating whether the Federal milk marketing order
system serves the interests of dairy producers, consumers,
and dairy processors; and
(7) evaluating the nutritional composition of milk,
including the potential benefits and costs of adjusting the
milk content standards.
(c) Membership.--
(1) Composition.--The commission shall consist of 14
members.
(2) Members.--As soon as practicable after the date on
which funds are first made available to carry out this
section, the Secretary shall appoint members to the
commission according to the following requirements:
(A) At least 1 member shall represent a national consumer
organization.
(B) At least 4 members shall represent land-grant
universities or NLGCA Institutions (as defined in section
1404 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103)) with accredited
dairy economic programs, with at least 2 of those members
being experts in the field of economics.
(C) At least 1 member shall represent the food and beverage
retail sector.
(D) 4 dairy producers and 4 dairy processors, appointed so
as to balance geographical distribution of milk production
and dairy processing, reflect all segments of dairy
processing, and represent all regions of the United States
equitably, including States that operate outside of a Federal
milk marketing order.
(3) Chair.--The commission shall elect 1 of the appointed
members of the commission to serve as chairperson for the
duration of the proceedings of the commission.
(4) Vacancy.--Any vacancy occurring before the termination
of the commission shall be filled in the same manner as the
original appointment.
(5) Compensation.--Members of the commission shall serve
without compensation, but shall be reimbursed by the
Secretary from existing budget authority for necessary and
reasonable expenses incurred in the performance of the duties
of the commission.
(d) Report.--
(1) In general.--Not later than 2 years after the date of
the first meeting of the commission, the commission shall
submit to Congress and the Secretary a report describing the
results of the review and evaluation conducted under this
section, including such recommendations regarding the
legislative and regulatory options considered under
subsection (b) as the commission considers to be appropriate.
(2) Opinions.--The report findings shall reflect, to the
maximum extent practicable, a consensus opinion of the
commission members, but the report may include majority and
minority findings regarding those matters for which consensus
was not reached.
(e) Advisory Nature.--The commission is wholly advisory in
nature, and the recommendations of the commission are
nonbinding.
(f) No Effect on Existing Programs.--The Secretary shall
not allow the existence of the commission to impede, delay,
or otherwise affect any decisionmaking process of the
Department of Agriculture, including any rulemaking
procedures planned, proposed, or near completion.
(g) Administrative Assistance.--The Secretary shall provide
administrative support to the commission, and expend to carry
out this section such funds as necessary from budget
authority available to the Secretary.
(h) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.
(i) Termination.--The commission shall terminate effective
on the date of the submission of the report under subsection
(d).
SEC. 1510. MANDATORY REPORTING OF DAIRY COMMODITIES.
(a) Electronic Reporting.--Section 273 of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1637b) is amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:
``(d) Electronic Reporting.--
``(1) In general.--Subject to the availability of funds
under paragraph (3), the Secretary shall establish an
electronic reporting system to carry out this section.
``(2) Frequency of reports.--After the establishment of the
electronic reporting system in accordance with paragraph (1),
the Secretary shall increase the frequency of the reports
required under this section.
``(3) Authorization of appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this subsection.''.
(b) Quarterly Audits.--Section 273(c) of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1637b(c)) is amended by
striking paragraph (3) and inserting the following:
``(3) Verification.--
``(A) In general.--The Secretary shall take such actions as
the Secretary considers necessary to verify the accuracy of
the information submitted or reported under this subtitle.
``(B) Quarterly audits.--The Secretary shall quarterly
conduct an audit of information submitted or reported under
this subtitle and compare such information with other related
dairy market statistics.''.
Subtitle F--Administration
SEC. 1601. ADMINISTRATION GENERALLY.
(a) Use of Commodity Credit Corporation.--Except as
otherwise provided in this title, the Secretary shall use the
funds, facilities, and authorities of the Commodity Credit
Corporation to carry out this title.
(b) Determinations by Secretary.--A determination made by
the Secretary under this title shall be final and conclusive.
(c) Regulations.--
(1) In general.--Except as otherwise provided in this
subsection, not later than 90 days after the date of
enactment of this Act, the Secretary and the Commodity Credit
Corporation, as appropriate, shall promulgate such
regulations as are necessary to implement this title and the
amendments made by this title.
(2) Procedure.--The promulgation of the regulations and
administration of this title and the amendments made by this
title shall be made without regard to--
(A) chapter 35 of title 44, United States Code (commonly
known as the ``Paperwork Reduction Act'');
(B) the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971 (36 Fed. Reg. 13804), relating to
notices of proposed rulemaking and public participation in
rulemaking; and
(C) the notice and comment provisions of section 553 of
title 5, United States Code.
(3) Congressional review of agency rulemaking.--In carrying
out this subsection, the Secretary shall use the authority
provided under section 808 of title 5, United States Code.
(4) Interim regulations.--Notwithstanding paragraphs (1)
and (2), the Secretary shall implement the amendments made by
sections 1603 and 1604 for the 2009 crop, fiscal, or program
year, as appropriate, through the promulgation of an interim
rule.
(d) Adjustment Authority Related to Trade Agreements
Compliance.--
(1) Required determination; adjustment.--If the Secretary
determines that expenditures under this title that are
subject to the total allowable domestic support levels under
the Uruguay Round Agreements (as defined in section 2 of the
Uruguay Round Agreements Act (19 U.S.C. 3501)) will exceed
such allowable levels for any applicable reporting period,
the Secretary shall, to the maximum extent practicable, make
adjustments in the amount of such expenditures during that
period to ensure that such expenditures do not exceed such
allowable levels.
(2) Congressional notification.--Before making any
adjustment under paragraph (1), the Secretary shall submit to
the Committee
[[Page H4493]]
on Agriculture of the House of Representatives or the
Committee on Agriculture, Nutrition, and Forestry of the
Senate a report describing the determination made under that
paragraph and the extent of the adjustment to be made.
(e) Treatment of Advance Payment Option.--Section 1601(d)
of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 7991(d)) is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) the advance payment of direct payments and counter-
cyclical payments under title I of the Food, Conservation,
and Energy Act of 2008.''.
SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.
(a) Agricultural Adjustment Act of 1938.--The following
provisions of the Agricultural Adjustment Act of 1938 shall
not be applicable to the 2008 through 2012 crops of covered
commodities, peanuts, and sugar and shall not be applicable
to milk during the period beginning on the date of enactment
of this Act through December 31, 2012:
(1) Parts II through V of subtitle B of title III (7 U.S.C.
1326 et seq.).
(2) In the case of upland cotton, section 377 (7 U.S.C.
1377).
(3) Subtitle D of title III (7 U.S.C. 1379a et seq.).
(4) Title IV (7 U.S.C. 1401 et seq.).
(b) Agricultural Act of 1949.--The following provisions of
the Agricultural Act of 1949 shall not be applicable to the
2008 through 2012 crops of covered commodities, peanuts, and
sugar and shall not be applicable to milk during the period
beginning on the date of enactment of this Act and through
December 31, 2012:
(1) Section 101 (7 U.S.C. 1441).
(2) Section 103(a) (7 U.S.C. 1444(a)).
(3) Section 105 (7 U.S.C. 1444b).
(4) Section 107 (7 U.S.C. 1445a).
(5) Section 110 (7 U.S.C. 1445e).
(6) Section 112 (7 U.S.C. 1445g).
(7) Section 115 (7 U.S.C. 1445k).
(8) Section 201 (7 U.S.C. 1446).
(9) Title III (7 U.S.C. 1447 et seq.).
(10) Title IV (7 U.S.C. 1421 et seq.), other than sections
404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).
(11) Title V (7 U.S.C. 1461 et seq.).
(12) Title VI (7 U.S.C. 1471 et seq.).
(c) Suspension of Certain Quota Provisions.--The joint
resolution entitled ``A joint resolution relating to corn and
wheat marketing quotas under the Agricultural Adjustment Act
of 1938, as amended'', approved May 26, 1941 (7 U.S.C. 1330
and 1340), shall not be applicable to the crops of wheat
planted for harvest in the calendar years 2008 through 2012.
SEC. 1603. PAYMENT LIMITATIONS.
(a) Extension of Limitations.--Sections 1001 and 1001C(a)
of the Food Security Act of 1985 (7 U.S.C. 1308, 1308-3(a))
are amended by striking ``Farm Security and Rural Investment
Act of 2002'' each place it appears and inserting ``Food,
Conservation, and Energy Act of 2008''.
(b) Revision of Limitations.--
(1) Definitions.--Section 1001(a) of the Food Security Act
of 1985 (7 U.S.C. 1308(a)) is amended--
(A) in the matter preceding paragraph (1), by inserting
``through section 1001F''after ``section'';
(B) by striking paragraph (2) and redesignating paragraph
(3) as paragraph (5); and
(C) by inserting after paragraph (1) the following:
``(2) Family member.--The term `family member' means a
person to whom a member in the farming operation is related
as lineal ancestor, lineal descendant, sibling, spouse, or
otherwise by marriage.
``(3) Legal entity.--The term `legal entity' means an
entity that is created under Federal or State law and that--
``(A) owns land or an agricultural commodity; or
``(B) produces an agricultural commodity.
``(4) Person.--The term `person' means a natural person,
and does not include a legal entity.''.
(2) Limitation on direct payments and counter-cyclical
payments.--Section 1001 of the Food Security Act of 1985 (7
U.S.C. 1308) is amended by striking subsections (b), (c), and
(d) and inserting the following:
``(b) Limitation on Direct Payments, Counter-Cyclical
Payments, and ACRE Payments for Covered Commodities (other
Than Peanuts).--
``(1) Direct payments.--The total amount of direct payments
received, directly or indirectly, by a person or legal entity
(except a joint venture or a general partnership) for any
crop year under subtitle A of title I of the Food,
Conservation, and Energy Act of 2008 for 1 or more covered
commodities (except for peanuts) may not exceed--
``(A) in the case of a person or legal entity that does not
participate in the average crop revenue election program
under section 1105 of that Act, $40,000; or
``(B) in the case of a person or legal entity that
participates in the average crop revenue election program
under section 1105 of that Act, an amount equal to--
``(i) the payment limit specified in subparagraph (A); less
``(ii) the amount of the reduction in direct payments under
section 1105(a)(1) of that Act.
``(2) Counter-cyclical payments.--In the case of a person
or legal entity (except a joint venture or a general
partnership) that does not participate in the average crop
revenue election program under section 1105 of the Food,
Conservation, and Energy Act of 2008, the total amount of
counter-cyclical payments received, directly or indirectly,
by the person or legal entity for any crop year under
subtitle A of title I of that Act for 1 or more covered
commodities (except for peanuts) may not exceed $65,000.
``(3) ACRE and counter-cyclical payments.--In the case of a
person or legal entity (except a joint venture or a general
partnership) that participates in the average crop revenue
election program under section 1105 of the Food,
Conservation, and Energy Act of 2008, the total amount of
average crop revenue election payments and counter-cyclical
payments received, directly or indirectly, by the person or
legal entity for any crop year for 1 or more covered
commodities (except for peanuts) may not exceed the sum of--
``(A) $65,000; and
``(B) the amount by which the direct payment limitation is
reduced under paragraph (1)(B).
``(c) Limitation on Direct Payments, Counter-Cyclical
Payments, and ACRE Payments for Peanuts.--
``(1) Direct payments.--The total amount of direct payments
received, directly or indirectly, by a person or legal entity
(except a joint venture or a general partnership) for any
crop year under subtitle C of title I of the Food,
Conservation, and Energy Act of 2008 for peanuts may not
exceed--
``(A) in the case of a person or legal entity that does not
participate in the average crop revenue election program
under section 1105 of that Act, $40,000; or
``(B) in the case of a person or legal entity that
participates in the average crop revenue election program
under section 1105 of that Act, an amount equal to--
``(i) the payment limit specified in subparagraph (A); less
``(ii) the amount of the reduction in direct payments under
section 1105(a)(1) of that Act.
``(2) Counter-cyclical payments.--In the case of a person
or legal entity (except a joint venture or a general
partnership) that does not participate in the average crop
revenue election program under section 1105 of the Food,
Conservation, and Energy Act of 2008, the total amount of
counter-cyclical payments received, directly or indirectly,
by the person or legal entity for any crop year under
subtitle C of title I of that Act for peanuts may not exceed
$65,000.
``(3) ACRE and counter-cyclical payments.--In the case of a
person or legal entity (except a joint venture or a general
partnership) that participates in the average crop revenue
election program under section 1105 of the Food,
Conservation, and Energy Act of 2008, the total amount of
average crop revenue election payments received, directly or
indirectly, by the person or legal entity for any crop year
for peanuts may not exceed the sum of--
``(A) $65,000; and
``(B) the amount by which the direct payment limitation is
reduced under paragraph (1)(B).
``(d) Limitation on Applicability.--Nothing in this section
authorizes any limitation on any benefit associated with the
marketing assistance loan program or the loan deficiency
payment program under title I of the Food, Conservation, and
Energy Act of 2008.''.
(3) Direct attribution.--Section 1001 of the Food Security
Act of 1985 (7 U.S.C. 1308) is amended--
(A) by striking subsections (e) and (f) and redesignating
subsection (g) as subsection (h); and
(B) by inserting after subsection (d) the following:
``(e) Attribution of Payments.--
``(1) In general.--In implementing subsections (b) and (c)
and a program described in paragraphs (1)(C) and (2)(B) of
section 1001D(b), the Secretary shall issue such regulations
as are necessary to ensure that the total amount of payments
are attributed to a person by taking into account the direct
and indirect ownership interests of the person in a legal
entity that is eligible to receive the payments.
``(2) Payments to a person.--Each payment made directly to
a person shall be combined with the pro rata interest of the
person in payments received by a legal entity in which the
person has a direct or indirect ownership interest unless the
payments of the legal entity have been reduced by the pro
rata share of the person.
``(3) Payments to a legal entity.--
``(A) In general.--Each payment made to a legal entity
shall be attributed to those persons who have a direct or
indirect ownership interest in the legal entity unless the
payment to the legal entity has been reduced by the pro rata
share of the person.
``(B) Attribution of payments.--
``(i) Payment limits.--Except as provided in clause (ii),
payments made to a legal entity shall not exceed the amounts
specified in subsections (b) and (c).
``(ii) Exception for joint ventures and general
partnerships.--Payments made to a joint venture or a general
partnership shall not exceed, for each payment specified in
subsections (b) and (c), the amount determined by multiplying
the maximum payment amount specified in subsections (b) and
(c) by the number of persons and legal entities (other than
joint ventures and general
[[Page H4494]]
partnerships) that comprise the ownership of the joint
venture or general partnership.
``(iii) Reduction.--Payments made to a legal entity shall
be reduced proportionately by an amount that represents the
direct or indirect ownership in the legal entity by any
person or legal entity that has otherwise exceeded the
applicable maximum payment limitation.
``(4) 4 levels of attribution for embedded legal
entities.--
``(A) In general.--Attribution of payments made to legal
entities shall be traced through 4 levels of ownership in
legal entities.
``(B) First level.--Any payments made to a legal entity (a
first-tier legal entity) that is owned in whole or in part by
a person shall be attributed to the person in an amount that
represents the direct ownership in the first-tier legal
entity by the person.
``(C) Second level.--
``(i) In general.--Any payments made to a first-tier legal
entity that is owned (in whole or in part) by another legal
entity (a second-tier legal entity) shall be attributed to
the second-tier legal entity in proportion to the ownership
of the second-tier legal entity in the first-tier legal
entity.
``(ii) Ownership by a person.--If the second-tier legal
entity is owned (in whole or in part) by a person, the amount
of the payment made to the first-tier legal entity shall be
attributed to the person in the amount that represents the
indirect ownership in the first-tier legal entity by the
person.
``(D) Third and fourth levels.--
``(i) In general.--Except as provided in clause (ii), the
Secretary shall attribute payments at the third and fourth
tiers of ownership in the same manner as specified in
subparagraph (C).
``(ii) Fourth-tier ownership.--If the fourth-tier of
ownership is that of a fourth-tier legal entity and not that
of a person, the Secretary shall reduce the amount of the
payment to be made to the first-tier legal entity in the
amount that represents the indirect ownership in the first-
tier legal entity by the fourth-tier legal entity.
``(f) Special Rules.--
``(1) Minor children.--
``(A) In general.--Except as provided in subparagraph (B),
payments received by a child under the age of 18 shall be
attributed to the parents of the child.
``(B) Regulations.--The Secretary shall issue regulations
specifying the conditions under which payments received by a
child under the age of 18 will not be attributed to the
parents of the child.
``(2) Marketing cooperatives.--Subsections (b) and (c)
shall not apply to a cooperative association of producers
with respect to commodities produced by the members of the
association that are marketed by the association on behalf of
the members of the association but shall apply to the
producers as persons.
``(3) Trusts and estates.--
``(A) In general.--With respect to irrevocable trusts and
estates, the Secretary shall administer this section through
section 1001F in such manner as the Secretary determines will
ensure the fair and equitable treatment of the beneficiaries
of the trusts and estates.
``(B) Irrevocable trust.--
``(i) In general.--In order for a trust to be considered an
irrevocable trust, the terms of the trust agreement shall
not--
``(I) allow for modification or termination of the trust by
the grantor;
``(II) allow for the grantor to have any future,
contingent, or remainder interest in the corpus of the trust;
or
``(III) except as provided in clause (ii), provide for the
transfer of the corpus of the trust to the remainder
beneficiary in less than 20 years beginning on the date the
trust is established.
``(ii) Exception.--Clause (i)(III) shall not apply in a
case in which the transfer is--
``(I) contingent on the remainder beneficiary achieving at
least the age of majority; or
``(II) contingent on the death of the grantor or income
beneficiary.
``(C) Revocable trust.--For the purposes of this section
through section 1001F, a revocable trust shall be considered
to be the same person as the grantor of the trust.
``(4) Cash rent tenants.--
``(A) Definition.--In this paragraph, the term `cash rent
tenant' means a person or legal entity that rents land--
``(i) for cash; or
``(ii) for a crop share guaranteed as to the amount of the
commodity to be paid in rent.
``(B) Restriction.--A cash rent tenant who makes a
significant contribution of active personal management, but
not of personal labor, with respect to a farming operation
shall be eligible to receive a payment described in
subsection (b) or (c) only if the tenant makes a significant
contribution of equipment to the farming operation.
``(5) Federal agencies.--
``(A) In general.--Notwithstanding subsection (d), a
Federal agency shall not be eligible to receive any payment,
benefit, or loan under title I of the Food, Conservation, and
Energy Act of 2008 or title XII of this Act.
``(B) Land rental.--A lessee of land owned by a Federal
agency may receive a payment described in subsection (b),
(c), or (d) if the lessee otherwise meets all applicable
criteria.
``(6) State and local governments.--
``(A) In general.--Notwithstanding subsection (d), except
as provided in subsection (g), a State or local government,
or political subdivision or agency of the government, shall
not be eligible to receive any payment, benefit, or loan
under title I of the Food, Conservation, and Energy Act of
2008 or title XII of this Act.
``(B) Tenants.--A lessee of land owned by a State or local
government, or political subdivision or agency of the
government, may receive payments described in subsections
(b), (c), and (d) if the lessee otherwise meets all
applicable criteria.
``(7) Changes in farming operations.--
``(A) In general.--In the administration of this section
through section 1001F, the Secretary may not approve any
change in a farming operation that otherwise will increase
the number of persons to which the limitations under this
section are applied unless the Secretary determines that the
change is bona fide and substantive.
``(B) Family members.--The addition of a family member to a
farming operation under the criteria set out in section 1001A
shall be considered a bona fide and substantive change in the
farming operation.
``(8) Death of owner.--
``(A) In general.--If any ownership interest in land or a
commodity is transferred as the result of the death of a
program participant, the new owner of the land or commodity
may, if the person is otherwise eligible to participate in
the applicable program, succeed to the contract of the prior
owner and receive payments subject to this section without
regard to the amount of payments received by the new owner.
``(B) Limitations on prior owner.--Payments made under this
paragraph shall not exceed the amount to which the previous
owner was entitled to receive under the terms of the contract
at the time of the death of the prior owner.
``(g) Public Schools.--
``(1) In general.--Notwithstanding subsection (f)(6)(A), a
State or local government, or political subdivision or agency
of the government, shall be eligible, subject to the
limitation in paragraph (2), to receive a payment described
in subsection (b) or (c) for land owned by the State or local
government, or political subdivision or agency of the
government, that is used to maintain a public school.
``(2) Limitation.--
``(A) In general.--For each State, the total amount of
payments described in subsections (b) and (c) that are
received collectively by the State and local government and
all political subdivisions or agencies of those governments
shall not exceed $500,000.
``(B) Exception.--The limitation in subparagraph (A) shall
not apply to States with a population of less than
1,500,000.''.
(c) Repeal of 3-Entity Rule.--Section 1001A of the Food
Security Act of 1985 (7 U.S.C. 1308-1) is amended--
(1) in the section heading, by striking ``PREVENTION OF
CREATION OF ENTITIES TO QUALIFY AS SEPARATE PERSONS'' and
inserting ``NOTIFICATION OF INTERESTS''; and
(2) by striking subsection (a) and inserting the following:
``(a) Notification of Interests.--To facilitate
administration of section 1001 and this section, each person
or legal entity receiving payments described in subsections
(b) and (c) of section 1001 as a separate person or legal
entity shall separately provide to the Secretary, at such
times and in such manner as prescribed by the Secretary--
``(1) the name and social security number of each person,
or the name and taxpayer identification number of each legal
entity, that holds or acquires an ownership interest in the
separate person or legal entity; and
``(2) the name and taxpayer identification number of each
legal entity in which the person or legal entity holds an
ownership interest.''.
(d) Amendment for Consistency.--Section 1001A of the Food
Security Act of 1985 (7 U.S.C. 1308-1) is amended by striking
subsection (b) and inserting the following:
``(b) Actively Engaged.--
``(1) In general.--To be eligible to receive a payment
described in subsection (b) or (c) of section 1001, a person
or legal entity shall be actively engaged in farming with
respect to a farming operation as provided in this subsection
or subsection (c).
``(2) Classes actively engaged.--Except as provided in
subsections (c) and (d)--
``(A) a person (including a person participating in a
farming operation as a partner in a general partnership, a
participant in a joint venture, a grantor of a revocable
trust, or a participant in a similar entity, as determined by
the Secretary) shall be considered to be actively engaged in
farming with respect to a farming operation if--
``(i) the person makes a significant contribution (based on
the total value of the farming operation) to the farming
operation of--
``(I) capital, equipment, or land; and
``(II) personal labor or active personal management;
``(ii) the person's share of the profits or losses from the
farming operation is commensurate with the contributions of
the person to the farming operation; and
``(iii) the contributions of the person are at risk;
``(B) a legal entity that is a corporation, joint stock
company, association, limited partnership, charitable
organization, or other similar entity determined by the
Secretary (including any such legal entity participating in
the farming operation as a partner in a general partnership,
a participant in
[[Page H4495]]
a joint venture, a grantor of a revocable trust, or as a
participant in a similar legal entity as determined by the
Secretary) shall be considered as actively engaged in farming
with respect to a farming operation if--
``(i) the legal entity separately makes a significant
contribution (based on the total value of the farming
operation) of capital, equipment, or land;
``(ii) the stockholders or members collectively make a
significant contribution of personal labor or active personal
management to the operation; and
``(iii) the standards provided in clauses (ii) and (iii) of
subparagraph (A), as applied to the legal entity, are met by
the legal entity;
``(C) if a legal entity that is a general partnership,
joint venture, or similar entity, as determined by the
Secretary, separately makes a significant contribution (based
on the total value of the farming operation involved) of
capital, equipment, or land, and the standards provided in
clauses (ii) and (iii) of subparagraph (A), as applied to the
legal entity, are met by the legal entity, the partners or
members making a significant contribution of personal labor
or active personal management shall be considered to be
actively engaged in farming with respect to the farming
operation involved; and
``(D) in making determinations under this subsection
regarding equipment and personal labor, the Secretary shall
take into consideration the equipment and personal labor
normally and customarily provided by farm operators in the
area involved to produce program crops.
``(c) Special Classes Actively Engaged.--
``(1) Landowner.--A person or legal entity that is a
landowner contributing the owned land to a farming operation
shall be considered to be actively engaged in farming with
respect to the farming operation if--
``(A) the landowner receives rent or income for the use of
the land based on the production on the land or the operating
results of the operation; and
``(B) the person or legal entity meets the standards
provided in clauses (ii) and (iii) of subsection (b)(2)(A).
``(2) Adult family member.--If a majority of the
participants in a farming operation are family members, an
adult family member shall be considered to be actively
engaged in farming with respect to the farming operation if
the person--
``(A) makes a significant contribution, based on the total
value of the farming operation, of active personal management
or personal labor; and
``(B) with respect to such contribution, meets the
standards provided in clauses (ii) and (iii) of subsection
(b)(2)(A).
``(3) Sharecropper.--A sharecropper who makes a significant
contribution of personal labor to a farming operation shall
be considered to be actively engaged in farming with respect
to the farming operation if the contribution meets the
standards provided in clauses (ii) and (iii) of subsection
(b)(2)(A).
``(4) Growers of hybrid seed.--In determining whether a
person or legal entity growing hybrid seed under contract
shall be considered to be actively engaged in farming, the
Secretary shall not take into consideration the existence of
a hybrid seed contract.
``(5) Custom farming services.--
``(A) In general.--A person or legal entity receiving
custom farming services shall be considered separately
eligible for payment limitation purposes if the person or
legal entity is actively engaged in farming based on
subsection (b)(2) or paragraphs (1) through (4) of this
subsection.
``(B) Prohibition.--No other rules with respect to custom
farming shall apply.
``(6) Spouse.--If 1 spouse (or estate of a deceased spouse)
is determined to be actively engaged, the other spouse shall
be determined to have met the requirements of subsection
(b)(2)(A)(i)(II).
``(d) Classes Not Actively Engaged.--
``(1) Cash rent landlord.--A landlord contributing land to
a farming operation shall not be considered to be actively
engaged in farming with respect to the farming operation if
the landlord receives cash rent, or a crop share guaranteed
as to the amount of the commodity to be paid in rent, for the
use of the land.
``(2) Other persons and legal entities.--Any other person
or legal entity that the Secretary determines does not meet
the standards described in subsections (b)(2) and (c) shall
not be considered to be actively engaged in farming with
respect to a farming operation.''.
(e) Denial of Program Benefits.--Section 1001B of the Food
Security Act of 1985 (7 U.S.C. 1308-2) is amended to read as
follows:
``SEC. 1001B. DENIAL OF PROGRAM BENEFITS.
``(a) 2-Year Denial of Program Benefits.--A person or legal
entity shall be ineligible to receive payments specified in
subsections (b) and (c) of section 1001 for the crop year,
and the succeeding crop year, in which the Secretary
determines that the person or legal entity--
``(1) failed to comply with section 1001A(b) and adopted or
participated in adopting a scheme or device to evade the
application of section 1001, 1001A, or 1001C; or
``(2) intentionally concealed the interest of the person or
legal entity in any farm or legal entity engaged in farming.
``(b) Extended Ineligibility.--If the Secretary determines
that a person or legal entity, for the benefit of the person
or legal entity or the benefit of any other person or legal
entity, has knowingly engaged in, or aided in the creation of
a fraudulent document, failed to disclose material
information relevant to the administration of sections 1001
through 1001F, or committed other equally serious actions (as
identified in regulations issued by the Secretary), the
Secretary may for a period not to exceed 5 crop years deny
the issuance of payments to the person or legal entity.
``(c) Pro Rata Denial.--
``(1) In general.--Payments otherwise owed to a person or
legal entity described in subsections (a) or (b) shall be
denied in a pro rata manner based on the ownership interest
of the person or legal entity in a farm.
``(2) Cash rent tenant.--Payments otherwise payable to a
person or legal entity shall be denied in a pro rata manner
if the person or legal entity is a cash rent tenant on a farm
owned or under the control of a person or legal entity with
respect to which a determination has been made under
subsection (a) or (b).
``(d) Joint and Several Liability.--Any legal entity
(including partnerships and joint ventures) and any member of
any legal entity determined to have knowingly participated in
a scheme or device to evade, or that has the purpose of
evading, sections 1001, 1001A, or 1001C shall be jointly and
severally liable for any amounts that are payable to the
Secretary as the result of the scheme or device (including
amounts necessary to recover those amounts).
``(e) Release.--The Secretary may partially or fully
release from liability any person or legal entity who
cooperates with the Secretary in enforcing sections 1001,
1001A, and 1001C, and this section.''.
(f) Conforming Amendment to Apply Direct Attribution to
NAP.--
(1) In general.--Section 196(i) of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)) is
amended--
(A) by striking paragraphs (1) and (2) and inserting the
following:
``(1) Definitions.--In this subsection, the terms `legal
entity' and `person' have the meanings given those terms in
section 1001(a) of the Food Security Act of 1985 (7 U.S.C.
1308(a)).
``(2) Payment limitation.--The total amount of payments
received, directly or indirectly, by a person or legal entity
(excluding a joint venture or general partnership) for any
crop year may not exceed $100,000.'';
(B) by striking paragraph (4) and inserting the following:
``(4) Adjusted gross income limitation.--A person or legal
entity that has an average adjusted gross income in excess of
the average adjusted gross income limitation applicable under
section 1001D(b)(1)(A) of the Food Security Act of 1985 (7
U.S.C. 1308-3a(b)(1)(A)), or a successor provision, shall not
be eligible to receive noninsured crop disaster assistance
under this section.''; and
(C) in paragraph (5)--
(i) by striking ``necessary to ensure'' and inserting
``necessary--
``(A) to ensure''; and
(ii) by striking ``this subsection.'' and inserting the
following: ``this subsection; and
``(B) to ensure that payments under this section are
attributed to a person or legal entity (excluding a joint
venture or general partnership) in accordance with the terms
and conditions of sections 1001 through 1001D of the Food
Security Act of 1985 (7 U.S.C. 1308 et seq.), as determined
by the Secretary.''.
(2) Transition.--Section 196(i) of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)), as in
effect on September 30, 2007, shall apply with respect to the
2007 and 2008 crops of any eligible crop.
(g) Conforming Amendments.--
(1) Section 1009(e) of the Food Security Act of 1985 (7
U.S.C. 1308a(e)) is amended in the second sentence by
striking ``of $50,000''.
(2) Section 609(b)(1) of the Emergency Livestock Feed
Assistance Act of 1988 (7 U.S.C. 1471g(b)(1)) is amended by
inserting ``(before the amendment made by section 1703(a) of
the Food, Conservation, and Energy Act of 2008)'' after
``1985''.
(3) Section 524(b)(3) of the Federal Crop Insurance Act (7
U.S.C. 1524(b)(3)) is amended by inserting ``(before the
amendment made by section 1703(a) of the Food, Conservation,
and Energy Act of 2008)'' after ``1308(5)))''.
(4) Section 10204(c)(1) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8204(c)(1)) is amended by
inserting ``(before the amendment made by section 1703(a) of
the Food, Conservation, and Energy Act of 2008)'' after
``1308)''.
(5) Section 1271(c)(3)(A) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (16 U.S.C.
2106a(c)(3)(A)) is amended by inserting ``(before the
amendment made by section 1703(a) of the Food, Conservation,
and Energy Act of 2008)'' after ``1308)''.
(6) Section 291(2) of the Trade Act of 1974 (19 U.S.C.
2401(2)) is amended by inserting ``(before the amendment made
by section 1703(a) of the Food, Conservation, and Energy Act
of 2008)'' before the period at the end.
(h) Transition.--Section 1001, 1001A, and 1001B of the Food
Security Act of 1985 (7 U.S.C. 1308, 1308-1, 1308-2), as in
effect on September 30, 2007, shall continue to apply with
respect to the 2007 and 2008 crops of any covered commodity
or peanuts.
SEC. 1604. ADJUSTED GROSS INCOME LIMITATION.
(a) In General.--Section 1001D of the Food Security Act of
1985 (7 U.S.C. 1308-3a(e)) is amended to read as follows:
[[Page H4496]]
``SEC. 1001D. ADJUSTED GROSS INCOME LIMITATION.
``(a) Definitions.--
``(1) In general.--In this section:
``(A) Average adjusted gross income.--The term `average
adjusted gross income', with respect to a person or legal
entity, means the average of the adjusted gross income or
comparable measure of the person or legal entity over the 3
taxable years preceding the most immediately preceding
complete taxable year, as determined by the Secretary.
``(B) Average adjusted gross farm income.--The term
`average adjusted gross farm income', with respect to a
person or legal entity, means the average of the portion of
adjusted gross income of the person or legal entity that is
attributable to activities related to farming, ranching, or
forestry for the 3 taxable years described in subparagraph
(A), as determined by the Secretary in accordance with
subsection (c).
``(C) Average adjusted gross nonfarm income.--The term
`average adjusted gross nonfarm income', with respect to a
person or legal entity, means the difference between--
``(i) the average adjusted gross income of the person or
legal entity; and
``(ii) the average adjusted gross farm income of the person
or legal entity.
``(2) Special rules for certain persons and legal
entities.--In the case of a legal entity that is not required
to file a Federal income tax return or a person or legal
entity that did not have taxable income in 1 or more of the
taxable years used to determine the average under
subparagraph (A) or (B) of paragraph (1), the Secretary shall
provide, by regulation, a method for determining the average
adjusted gross income, the average adjusted gross farm
income, and the average adjusted gross nonfarm income of the
person or legal entity for purposes of this section.
``(3) Allocation of income.--On the request of any person
filing a joint tax return, the Secretary shall provide for
the allocation of average adjusted gross income, average
adjusted gross farm income, and average adjusted gross
nonfarm income among the persons filing the return if--
``(A) the person provides a certified statement by a
certified public accountant or attorney that specifies the
method by which the average adjusted gross income, average
adjusted gross farm income, and average adjusted gross
nonfarm income would have been declared and reported had the
persons filed 2 separate returns; and
``(B) the Secretary determines that the method described in
the statement is consistent with the information supporting
the filed joint tax return.
``(b) Limitations.--
``(1) Commodity programs.--
``(A) Nonfarm limitation.--Notwithstanding any other
provision of law, a person or legal entity shall not be
eligible to receive any benefit described in subparagraph (C)
during a crop, fiscal, or program year, as appropriate, if
the average adjusted gross nonfarm income of the person or
legal entity exceeds $500,000.
``(B) Farm limitation.--Notwithstanding any other provision
of law, a person or legal entity shall not be eligible to
receive a direct payment under subtitle A or C of title I of
the Food, Conservation, and Energy Act of 2008 during a crop
year, if the average adjusted gross farm income of the person
or legal entity exceeds $750,000.
``(C) Covered benefits.--Subparagraph (A) applies with
respect to the following:
``(i) A direct payment or counter-cyclical payment under
subtitle A or C of title I of the Food, Conservation, and
Energy Act of 2008 or an average crop revenue election
payment under subtitle A of title I of that Act.
``(ii) A marketing loan gain or loan deficiency payment
under subtitle B or C of title I of the Food, Conservation,
and Energy Act of 2008.
``(iii) A payment or benefit under section 196 of the
Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7333).
``(iv) A payment or benefit under section 1506 of the Food,
Conservation, and Energy Act of 2008.
``(v) A payment or benefit under title IX of the Trade Act
of 1974 or subtitle B of the Federal Crop Insurance Act.
``(2) Conservation programs.--
``(A) Limits.--
``(i) In general.--Notwithstanding any other provision of
law, except as provided in clause (ii), a person or legal
entity shall not be eligible to receive any benefit described
in subparagraph (B) during a crop, fiscal, or program year,
as appropriate, if the average adjusted gross nonfarm income
of the person or legal entity exceeds $1,000,000, unless not
less than 66.66 percent of the average adjusted gross income
of the person or legal entity is average adjusted gross farm
income.
``(ii) Exception.--The Secretary may waive the limitation
established under clause (i) on a case-by-case basis if the
Secretary determines that environmentally sensitive land of
special significance would be protected.
``(B) Covered benefits.--Subparagraph (A) applies with
respect to the following:
``(i) A payment or benefit under title XII of this Act.
``(ii) A payment or benefit under title II of the Farm
Security and Rural Investment Act of 2002 (Public Law 107-
171; 116 Stat. 223) or title II of the Food, Conservation,
and Energy Act of 2008.
``(iii) A payment or benefit under section 524(b) of the
Federal Crop Insurance Act (7 U.S.C. 1524(b)).
``(c) Income Determination.--
``(1) In general.--In determining the average adjusted
gross farm income of a person or legal entity, the Secretary
shall include income or benefits derived from or related to--
``(A) the production of crops, including specialty crops
(as defined in section 3 of the Specialty Crops
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law
108-465)) and unfinished raw forestry products;
``(B) the production of livestock (including cattle, elk,
reindeer, bison, horses, deer, sheep, goats, swine, poultry,
fish, and other aquacultural products used for food,
honeybees, and other animals designated by the Secretary) and
products produced by, or derived from, livestock;
``(C) the production of farm-based renewable energy (as
defined in section 9001 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8101));
``(D) the sale, including the sale of easements and
development rights, of farm, ranch, or forestry land, water
or hunting rights, or environmental benefits;
``(E) the rental or lease of land or equipment used for
farming, ranching, or forestry operations, including water or
hunting rights;
``(F) the processing (including packing), storing
(including shedding), and transporting of farm, ranch, and
forestry commodities, including renewable energy;
``(G) the feeding, rearing, or finishing of livestock;
``(H) the sale of land that has been used for agriculture;
``(I) payments or other benefits received under any program
authorized under title I of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7901 et seq.) or title I of
the Food, Conservation, and Energy Act of 2008;
``(J) payments or other benefits received under any program
authorized under title XII of this Act, title II of the Farm
Security and Rural Investment Act of 2002 (Public Law 107-
171; 116 Stat. 223), or title II of the Food, Conservation,
and Energy Act of 2008;
``(K) payments or other benefits received under section 196
of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7333);
``(L) payments or other benefits received under title IX of
the Trade Act of 1974 or subtitle B of the Federal Crop
Insurance Act;
``(M) risk management practices, including benefits
received under a program authorized under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.) (including a
catastrophic risk protection plan offered under section
508(b) of that Act (7 U.S.C. 1508(b))); and
``(N) any other activity related to farming, ranching, or
forestry, as determined by the Secretary.
``(2) Income derived from farming, ranching, or forestry.--
In determining the average adjusted gross farm income of a
person or legal entity, in addition to the inclusions
described in paragraph (1), the Secretary shall include any
income reported on the Schedule F or other schedule used by
the person or legal entity to report income from farming,
ranching, or forestry operations to the Internal Revenue
Service, to the extent such income is not already included
under paragraph (1).
``(3) Special rule.--If not less than 66.66 percent of the
average adjusted gross income of a person or legal entity is
derived from farming, ranching, or forestry operations
described in paragraphs (1) and (2), in determining the
average adjusted gross farm income of the person or legal
entity, the Secretary shall also include--
``(A) the sale of equipment to conduct farm, ranch, or
forestry operations; and
``(B) the provision of production inputs and services to
farmers, ranchers, foresters, and farm operations.
``(d) Enforcement.--
``(1) In general.--To comply with subsection (b), at least
once every 3 years a person or legal entity shall provide to
the Secretary--
``(A) a certification by a certified public accountant or
another third party that is acceptable to the Secretary that
the average adjusted gross income, average adjusted gross
farm income, and average adjusted gross nonfarm income of the
person or legal entity does not exceed the applicable
limitation specified in that subsection; or
``(B) information and documentation regarding the average
adjusted gross income, average adjusted gross farm income,
and average adjusted gross nonfarm income of the person or
legal entity through other procedures established by the
Secretary.
``(2) Denial of program benefits.--If the Secretary
determines that a person or legal entity has failed to comply
with this section, the Secretary shall deny the issuance of
applicable payments and benefits specified in paragraphs
(1)(C) and (2)(B) of subsection (b) to the person or legal
entity, under similar terms and conditions as described in
section 1001B.
``(3) Audit.--The Secretary shall establish statistically
valid procedures under which the Secretary shall conduct
targeted audits of such persons or legal entities as the
Secretary determines are most likely to exceed the
limitations under subsection (b).
``(e) Commensurate Reduction.--In the case of a payment or
benefit described in paragraphs (1)(C) and (2)(B) of
subsection (b) made in a crop, program, or fiscal year, as
appropriate, to an entity, general partnership, or joint
venture, the amount of the payment or benefit shall be
reduced by an
[[Page H4497]]
amount that is commensurate with the direct and indirect
ownership interest in the entity, general partnership, or
joint venture of each person who has an average adjusted
gross income, average adjusted gross farm income, or average
adjusted gross nonfarm income in excess of the applicable
limitation specified in subsection (b).
``(f) Effective Period.--This section shall apply only
during the 2009 through 2012 crop, program, or fiscal years,
as appropriate.''.
(b) Transition.--Section 1001D of the Food Security Act of
1985 (7 U.S.C. 1308-3a), as in effect on September 30, 2007,
shall apply with respect to the 2007 and 2008 crop, fiscal,
or program year, as appropriate, for each program described
in paragraphs (1)(C) and (2)(B) of subsection (b) of that
section (as amended by subsection (a)).
SEC. 1605. AVAILABILITY OF QUALITY INCENTIVE PAYMENTS FOR
COVERED OILSEED PRODUCERS.
(a) Incentive Payments Required.--Subject to subsection (b)
and the availability of appropriations under subsection (h),
the Secretary shall use funds made available under subsection
(h) to provide quality incentive payments for the production
of oilseeds with specialized traits that enhance human
health, as determined by the Secretary.
(b) Covered Oilseeds.--The Secretary shall make payments
under this section only for the production of an oilseed
variety that has, as determined by the Secretary--
(1) been demonstrated to improve the health profile of the
oilseed for use in human consumption by--
(A) reducing or eliminating the need to partially
hydrogenate the oil derived from the oilseed for use in human
consumption; or
(B) adopting new technology traits; and
(2) 1 or more impediments to commercialization.
(c) Request for Proposals.--
(1) Issuance.--If funds are made available to carry out
this section for a crop year, the Secretary shall issue a
request for proposals for payments under this section.
(2) Multiyear proposals.--A proponent may submit a
multiyear proposal for payments under this section.
(3) Content of proposals.--A proposal for payments under
this section shall include a description of--
(A) how use of the oilseed enhances human health;
(B) the impediments to commercial use of the oilseed;
(C) each oilseed variety described in subsection (b) and
the value of the oilseed variety as a matter of public
policy;
(D) a range for the base price and premiums per bushel or
hundredweight to be paid to producers;
(E) a per bushel or hundredweight amount of incentive
payments requested for each year under this section that does
not exceed \1/3\ of the total premium offered for any year;
(F) the period of time, not to exceed 4 years, during which
incentive payments are to be provided to producers; and
(G) the targeted total quantity of production and estimated
acres needed to produce the targeted quantity for each year
under this section.
(d) Contracts for Production.--
(1) In general.--The Secretary shall approve successful
proposals submitted under subsection (c) on a timely basis.
(2) Timing of payments.--The Secretary shall make payments
to producers under this section after the Secretary receives
documentation that the premium required under a contract has
been paid to covered producers.
(e) Administration.--
(1) In general.--If funding provided for a crop year is not
fully allocated under the initial request for proposals under
subsection (c), the Secretary shall issue additional requests
for proposals for subsequent crop years under this section.
(2) Prorated payments.--If funding provided for a crop year
is less than the amount otherwise approved by the Secretary
or for which approval is sought, the Secretary shall prorate
the payments or approvals in a manner determined by the
Secretary so that the total payments do not exceed the
funding level.
(f) Proprietary Information.--The Secretary shall protect
proprietary information provided to the Secretary for the
purpose of administering this section.
(g) Program Compliance and Penalties.--
(1) Guarantee.--The proponent, if approved, shall be
required to guarantee that the oilseed on which a payment is
made by the Secretary under this section is used for human
consumption as described in the proposal, as approved by the
Secretary.
(2) Noncompliance.--If oilseeds on which a payment is made
by the Secretary under this section are not actually used for
the purpose the payment is made, the proponent shall be
required to pay to the Secretary an amount equal to, as
determined by the Secretary--
(A) in the case of an inadvertent failure, twice the amount
of the payment made by the Secretary under this section to
the producer of the oilseeds; and
(B) in any other case, up to twice the full value of the
oilseeds involved.
(3) Documentation.--The Secretary may require such
assurances and documentation as may be needed to enforce the
guarantee.
(4) Additional penalties.--
(A) In general.--In addition to payments required under
paragraph (2), the Secretary may impose penalties on
additional persons that use oilseeds the use of which is
restricted under this section for a purpose other than the
intended use.
(B) Amount.--The amount of a penalty under this paragraph
shall--
(i) be in an amount determined appropriated by the
Secretary; but
(ii) not to exceed twice the full value of the oilseeds.
(h) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section for each of fiscal years 2009 through 2012.
SEC. 1606. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.
Section 164 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7284) is amended by striking
``and title I of the Farm Security and Rural Investment Act
of 2002'' each place it appears and inserting ``title I of
the Farm Security and Rural Investment Act of 2002, and title
I of the Food, Conservation, and Energy Act of 2008''.
SEC. 1607. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY
REGARDING LOANS.
Section 166 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7286) is amended--
(1) by striking ``and subtitle B and C of title I of the
Farm Security and Rural Investment Act of 2002'' each place
it appears and inserting ``, title I of the Farm Security and
Rural Investment Act of 2002, and title I of the Food,
Conservation, and Energy Act of 2008''; and
(2) in subsection (c), by adding at the end the following:
``(3) Termination of authority.--The authority to carry out
paragraph (1) terminates effective ending with the 2009 crop
year.''.
SEC. 1608. ASSIGNMENT OF PAYMENTS.
(a) In General.--The provisions of section 8(g) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)),
relating to assignment of payments, shall apply to payments
made under this title.
(b) Notice.--The producer making the assignment, or the
assignee, shall provide the Secretary with notice, in such
manner as the Secretary may require, of any assignment made
under this section.
SEC. 1609. TRACKING OF BENEFITS.
As soon as practicable after the date of enactment of this
Act, the Secretary may track the benefits provided, directly
or indirectly, to individuals and entities under titles I and
II and the amendments made by those titles.
SEC. 1610. GOVERNMENT PUBLICATION OF COTTON PRICE FORECASTS.
Section 15 of the Agricultural Marketing Act (12 U.S.C.
1141j) is amended--
(1) by striking subsection (d); and
(2) by redesignating subsections (e) through (g) as
subsections (d) through (f), respectively.
SEC. 1611. PREVENTION OF DECEASED INDIVIDUALS RECEIVING
PAYMENTS UNDER FARM COMMODITY PROGRAMS.
(a) Regulations.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall promulgate
regulations that--
(1) describe the circumstances under which, in order to
allow for the settlement of estates and for related purposes,
payments may be issued in the name of a deceased individual;
and
(2) preclude the issuance of payments to, and on behalf of,
deceased individuals that were not eligible for the payments.
(b) Coordination.--At least twice each year, the Secretary
shall reconcile the social security numbers of all
individuals who receive payments under this title, whether
directly or indirectly, with the Social Security
Administration to determine if the individuals are alive.
SEC. 1612. HARD WHITE WHEAT DEVELOPMENT PROGRAM.
(a) Definitions.--In this section:
(1) Eligible hard white wheat seed.--The term ``eligible
hard white wheat seed'' means hard white wheat seed that, as
determined by the Secretary, is--
(A) certified;
(B) of a variety that is suitable for the State in which
the seed will be planted;
(C) rated at least superior with respect to quality; and
(D) specifically approved under a seed establishment
program established by the State Department of Agriculture
and the State Wheat Commission of the 1 or more States in
which the seed will be planted.
(2) Program.--The term ``program'' means the hard white
wheat development program established under subsection
(b)(1).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture, in consultation with the State Departments of
Agriculture and the State Wheat Commissions of the States in
regions in which hard white wheat is produced, as determined
by the Secretary.
(b) Establishment.--
(1) In general.--Subject to the availability of
appropriations, the Secretary shall establish a hard white
wheat development program in accordance with paragraph (2) to
promote the establishment of hard white wheat as a viable
market class of wheat in the United States by encouraging
production of at least 240,000,000 bushels of hard white
wheat by 2012.
(2) Payments.--
(A) In general.--Subject to subparagraphs (B) and (C) and
subsection (c), if funds are made available for any of the
2009 through 2012 crops of hard white wheat, the Secretary
[[Page H4498]]
shall make available incentive payments to producers of those
crops.
(B) Acreage limitation.--The Secretary shall carry out
subparagraph (A) subject to a regional limitation determined
by the Secretary on the number of acres for which payments
may be received that takes into account planting history and
potential planting, but does not exceed a total of 2,900,000
acres or the equivalent volume of production based on a yield
of 50 bushels per acre.
(C) Payment limitations.--Payments to producers on a farm
described in subparagraph (A) shall be--
(i) in an amount that is not less than $0.20 per bushel;
and
(ii) in an amount that is not less than $2.00 per acre for
planting eligible hard white wheat seed.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $35,000,000 for
the period of fiscal years 2009 through 2012.
SEC. 1613. DURUM WHEAT QUALITY PROGRAM.
(a) In General.--Subject to the availability of funds under
subsection (c), the Secretary shall provide compensation to
producers of durum wheat in an amount not to exceed 50
percent of the actual cost of fungicides applied to a crop of
durum wheat of the producers to control Fusarium head blight
(wheat scab) on acres certified to have been planted to Durum
wheat in a crop year.
(b) Insufficient Funds.--If the total amount of funds
appropriated for a fiscal year under subsection (c) are
insufficient to fulfill all eligible requests for
compensation under this section, the Secretary shall prorate
the compensation payments in a manner determined by the
Secretary to be equitable.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $10,000,000 for
each of fiscal years 2009 through 2012.
SEC. 1614. STORAGE FACILITY LOANS.
(a) In General.--As soon as practicable after the date of
enactment of this Act, the Secretary shall establish a
storage facility loan program to provide funds for producers
of grains, oilseeds, pulse crops, hay, renewable biomass, and
other storable commodities (other than sugar), as determined
by the Secretary, to construct or upgrade storage and
handling facilities for the commodities.
(b) Eligible Producers.--A storage facility loan under this
section shall be made available to any producer described in
subsection (a) that, as determined by the Secretary--
(1) has a satisfactory credit history;
(2) has a need for increased storage capacity; and
(3) demonstrates an ability to repay the loan.
(c) Term of Loans.--A storage facility loan under this
section shall have a maximum term of 12 years.
(d) Loan Amount.--The maximum principal amount of a storage
facility loan under this section shall be $500,000.
(e) Loan Disbursements.--The Secretary shall provide for 1
partial disbursement of loan principal and 1 final
disbursement of loan principal, as determined to be
appropriate and subject to acceptable documentation, to
facilitate the purchase and construction of eligible
facilities.
(f) Loan Security.--Approval of a storage facility loan
under this section shall--
(1) require the borrower to provide loan security to the
Secretary, in the form of--
(A) a lien on the real estate parcel on which the storage
facility is located; or
(B) such other security as is acceptable to the Secretary;
(2) under such rules and regulations as the Secretary may
prescribe, not require a severance agreement from the holder
of any prior lien on the real estate parcel on which the
storage facility is located, if the borrower--
(A) agrees to increase the down payment on the storage
facility by an amount determined appropriate by the
Secretary; or
(B) provides other security acceptable to the Secretary;
and
(3) allow a borrower, upon the approval of the Secretary,
to define a subparcel of real estate as security for the
storage facility loan if the subparcel is--
(A) of adequate size and value to adequately secure the
loan; and
(B) not subject to any other liens or mortgages that are
superior to the lien interest of the Commodity Credit
Corporation.
SEC. 1615. STATE, COUNTY, AND AREA COMMITTEES.
Section 8(b)(5)(B)(ii) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(b)(5)(B)(ii)) is
amended--
(1) by redesignating subclauses (I) and (II) as items (aa)
and (bb), respectively, and indenting appropriately;
(2) in the matter preceding item (aa) (as redesignated by
paragraph (1)), by striking ``A committee established'' and
inserting the following:
``(I) In general.--Except as provided in subclause (II), a
committee established''; and
(3) by adding at the end the following:
``(II) Combination or consolidation of areas.--A committee
established by combining or consolidating 2 or more county or
area committees shall consist of not fewer than 3 nor more
than 11 members that--
``(aa) are fairly representative of the agricultural
producers within the area covered by the county, area, or
local committee; and
``(bb) are elected by the agricultural producers that
participate or cooperate in programs administered within the
area under the jurisdiction of the county, area, or local
committee.
``(III) Representation of socially disadvantaged farmers
and ranchers.--The Secretary shall develop procedures to
maintain representation of socially disadvantaged farmers and
ranchers on combined or consolidated committees.
``(IV) Eligibility for membership.--Notwithstanding any
other producer eligibility requirements for service on county
or area committees, if a county or area is consolidated or
combined, a producer shall be eligible to serve only as a
member of the county or area committee that the producer
elects to administer the farm records of the producer.''.
SEC. 1616. PROHIBITION ON CHARGING CERTAIN FEES.
Public Law 108-470 (7 U.S.C. 7416a) is amended--
(1) in subsection (a), by striking ``may'' and inserting
``shall''; and
(2) by adding at the end the following:
``(c) Prohibition on Charging Certain Fees.--The Secretary
may not charge any fees or related costs for the collection
of commodity assessments pursuant to this Act.''.
SEC. 1617. SIGNATURE AUTHORITY.
(a) In General.--In carrying out this title and title II
and amendments made by those titles, if the Secretary
approves a document, the Secretary shall not subsequently
determine the document is inadequate or invalid because of
the lack of authority of any person signing the document on
behalf of the applicant or any other individual, entity,
general partnership, or joint venture, or the documents
relied upon were determined inadequate or invalid, unless the
person signing the program document knowingly and willfully
falsified the evidence of signature authority or a signature.
(b) Affirmation.--
(1) In general.--Nothing in this section prohibits the
Secretary from asking a proper party to affirm any document
that otherwise would be considered approved under subsection
(a).
(2) No retroactive effect.--A denial of benefits based on a
lack of affirmation under paragraph (1) shall not be
retroactive with respect to third-party producers who were
not the subject of the erroneous representation of authority,
if the third-party producers--
(A) relied on the prior approval by the Secretary of the
documents in good faith; and
(B) substantively complied with all program requirements
SEC. 1618. MODERNIZATION OF FARM SERVICE AGENCY.
Not later than 180 days after the date of enactment of this
Act, the Secretary shall transmit to the Committee on
Agriculture and the Committee on Appropriations of the House
of Representatives and the Committee on Agriculture,
Nutrition, and Forestry and the Committee on Appropriations
of the Senate a report prepared by a third party that
describes--
(1) the data processing and information technology
challenges experienced in local offices of the Farm Service
Agency;
(2) the impact of those challenges on service to producers,
on efficiency of personnel, and on implementation of this
Act;
(3) the need for information technology system upgrades of
the Farm Service Agency relative to other agencies of the
Department of Agriculture;
(4) the detailed plan needed to fulfill the needs of the
Department that are identified in paragraph (3), including
hardware, software, and infrastructure requirements;
(5) the estimated cost and timeframe for long-term
modernization and stabilization of Farm Service Agency
information technology systems;
(6) the benefits associated with such modernization and
stabilization; and
(7) an evaluation of the existence of appropriate oversight
within the Department to ensure that funds needed for systems
upgrades can be appropriately managed.
SEC. 1619. INFORMATION GATHERING.
(a) Geospatial Systems.--The Secretary shall ensure that
all the geospatial data of the agencies of the Department of
Agriculture are portable and standardized.
(b) Limitation on Disclosures.--
(1) Definition of agricultural operation.--In this
subsection, the term ``agricultural operation'' includes the
production and marketing of agricultural commodities and
livestock.
(2) Prohibition.--Except as provided in paragraphs (3) and
(4), the Secretary, any officer or employee of the Department
of Agriculture, or any contractor or cooperator of the
Department, shall not disclose--
(A) information provided by an agricultural producer or
owner of agricultural land concerning the agricultural
operation, farming or conservation practices, or the land
itself, in order to participate in programs of the
Department; or
(B) geospatial information otherwise maintained by the
Secretary about agricultural land or operations for which
information described in subparagraph (A) is provided.
(3) Authorized disclosures.--
(A) Limited release of information.--If the Secretary
determines that the information described in paragraph (2)
will not be subsequently disclosed except in accordance with
paragraph (4), the Secretary may release or disclose the
information to a person
[[Page H4499]]
or Federal, State, local, or tribal agency working in
cooperation with the Secretary in any Department program--
(i) when providing technical or financial assistance with
respect to the agricultural operation, agricultural land, or
farming or conservation practices; or
(ii) when responding to a disease or pest threat to
agricultural operations, if the Secretary determines that a
threat to agricultural operations exists and the disclosure
of information to a person or cooperating government entity
is necessary to assist the Secretary in responding to the
disease or pest threat as authorized by law.
(4) Exceptions.--Nothing in this subsection affects--
(A) the disclosure of payment information (including
payment information and the names and addresses of recipients
of payments) under any Department program that is otherwise
authorized by law;
(B) the disclosure of information described in paragraph
(2) if the information has been transformed into a
statistical or aggregate form without naming any--
(i) individual owner, operator, or producer; or
(ii) specific data gathering site; or
(C) the disclosure of information described in paragraph
(2) pursuant to the consent of the agricultural producer or
owner of agricultural land.
(5) Condition of other programs.--The participation of the
agricultural producer or owner of agricultural land in, or
receipt of any benefit under, any program administered by the
Secretary may not be conditioned on the consent of the
agricultural producer or owner of agricultural land under
paragraph (4)(C).
(6) Waiver of privilege or protection.--The disclosure of
information under paragraph (2) shall not constitute a waiver
of any applicable privilege or protection under Federal law,
including trade secret protection.
SEC. 1620. LEASING OF OFFICE SPACE.
Not later than 1 year after the date of enactment of this
Act, the Secretary shall submit to the Committee on
Agriculture and the Committee on Appropriations of the House
of Representatives and the Committee on Agriculture,
Nutrition, and Forestry and the Committee on Appropriations
of the Senate a report that describes--
(1) the costs and time associated with complying with
leasing procedures of the General Services Administration
relative to the previous independent leasing procedures of
the Department of Agriculture;
(2) the additional staffing needs associated with complying
with those procedures; and
(3) the value added to the leasing process and the ability
of the Department to secure best-value leases by complying
with the General Services Administration leasing procedures.
SEC. 1621. GEOGRAPHICALLY DISADVANTAGED FARMERS AND RANCHERS.
(a) Definitions.--In this section:
(1) Agricultural commodity.--The term ``agricultural
commodity'' has the meaning given the term in section 102 of
the Agricultural Trade Act of 1978 (7 U.S.C. 5602).
(2) Geographically disadvantaged farmer or rancher.--The
term ``geographically disadvantaged farmer or rancher'' has
the meaning given the term in section 10906(a) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 2204
note; Public Law 107-171).
(b) Authorization.--Subject to the availability of funds
under subsection (d), the Secretary may provide
geographically disadvantaged farmers or ranchers direct
reimbursement payments for activities described in subsection
(c).
(c) Transportation.--
(1) In general.--Subject to paragraphs (2) and (3), the
Secretary may provide direct reimbursement payments to a
geographically disadvantaged farmer or rancher to transport
an agricultural commodity, or inputs used to produce an
agricultural commodity, during a fiscal year.
(2) Proof of eligibility.--To be eligible to receive
assistance under paragraph (1), a geographically
disadvantaged farmer or rancher shall demonstrate to the
Secretary that transportation of the agricultural commodity
or inputs occurred over a distance of more than 30 miles, as
determined by the Secretary.
(3) Amount.--
(A) In general.--Subject to paragraph (2), the amount of
direct reimbursement payments made to a geographically
disadvantaged farmer or rancher under this section for a
fiscal year shall equal the product obtained by multiplying--
(i) the amount of costs incurred by the geographically
disadvantaged farmer or rancher for transportation of the
agricultural commodity or inputs during the fiscal year; and
(ii)(I) the percentage of the allowance for that fiscal
year under section 5941 of title 5, United States Code, for
Federal employees stationed in Alaska and Hawaii; or
(II) in the case of an insular area (as defined in section
1404 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103)), a comparable
percentage of the allowance for the fiscal year, as
determined by the Secretary.
(B) Limitation.--The total amount of direct reimbursement
payments provided by the Secretary under this section shall
not exceed $15,000,000 for a fiscal year.
(d) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section for each of fiscal years 2009 through 2012.
SEC. 1622. IMPLEMENTATION.
The Secretary shall make available to the Farm Service
Agency to carry out this title $50,000,000.
SEC. 1623. REPEALS.
(a) Commission on Application of Payment Limitations.--
Section 1605 of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 7993) is repealed.
(b) Renewed Availability of Market Loss Assistance and
Certain Emergency Assistance to Persons That Failed To
Receive Assistance Under Earlier Authorities.--Section 1617
of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 8000) is repealed.
TITLE II--CONSERVATION
Subtitle A--Definitions and Highly Erodible Land and Wetland
Conservation
SEC. 2001. DEFINITIONS RELATING TO CONSERVATION TITLE OF FOOD
SECURITY ACT OF 1985.
(a) Beginning Farmer or Rancher.--Section 1201(a) of the
Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended--
(1) by redesignating paragraphs (2) through (6), (7)
through (11), (12), (13) through (15), (16), (17), and (18)
as paragraphs (3) through (7), (9) through (13), (15), (20)
through (22), (24), (26), and (27), respectively; and
(2) by inserting after paragraph (1) the following new
paragraph:
``(2) Beginning farmer or rancher.--The term `beginning
farmer or rancher' has the meaning given the term in section
343(a)(8) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1991(a)(8)).''.
(b) Farm.--Section 1201(a) of the Food Security Act of 1985
(16 U.S.C. 3801(a)) is amended by inserting after paragraph
(7), as redesignated by subsection (a)(1), the following new
paragraph:
``(8) Farm.--The term `farm' means a farm that--
``(A) is under the general control of one operator;
``(B) has one or more owners;
``(C) consists of one or more tracts of land, whether or
not contiguous;
``(D) is located within a county or region, as determined
by the Secretary; and
``(E) may contain lands that are incidental to the
production of perennial crops, including conserving uses,
forestry, and livestock, as determined by the Secretary.''.
(c) Indian Tribe.--Section 1201(a) of the Food Security Act
of 1985 (16 U.S.C. 3801(a)) is amended by inserting after
paragraph (13), as redesignated by subsection (a)(1), the
following new paragraph:
``(14) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4(e) of the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
450b(e)).''.
(d) Integrated Pest Management; Livestock; Nonindustrial
Private Forest Land; Person and Legal Entity.--Section
1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a))
is amended by inserting after paragraph (15), as redesignated
by subsection (a)(1), the following new paragraphs:
``(16) Integrated pest management.--The term `integrated
pest management' means a sustainable approach to managing
pests by combining biological, cultural, physical, and
chemical tools in a way that minimizes economic, health, and
environmental risks.
``(17) Livestock.--The term `livestock' means all animals
raised on farms, as determined by the Secretary.
``(18) Nonindustrial private forest land.--The term
`nonindustrial private forest land' means rural land, as
determined by the Secretary, that--
``(A) has existing tree cover or is suitable for growing
trees; and
``(B) is owned by any nonindustrial private individual,
group, association, corporation, Indian tribe, or other
private legal entity that has definitive decisionmaking
authority over the land.
``(19) Person and legal entity.--For purposes of applying
payment limitations under subtitle D, the terms `person' and
`legal entity' have the meanings given those terms in section
1001(a) of this Act (7 U.S.C. 1308(a)).''.
(e) Socially Disadvantaged Farmer or Rancher.--Section
1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a))
is amended by inserting after paragraph (22), as redesignated
by subsection (a)(1), the following new paragraph:
``(23) Socially disadvantaged farmer or rancher.--The term
`socially disadvantaged farmer or rancher' has the meaning
given the term in section 2501(e)(2) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
2279(e)(2)).''.
(f) Technical Assistance.--Section 1201(a) of the Food
Security Act of 1985 (16 U.S.C. 3801(a)) is amended by
inserting after paragraph (24), as redesignated by subsection
(a)(1), the following new paragraph:
``(25) Technical assistance.--The term `technical
assistance' means technical expertise, information, and tools
necessary for the conservation of natural resources on land
active in agricultural, forestry, or related uses. The term
includes the following:
``(A) Technical services provided directly to farmers,
ranchers, and other eligible entities, such as conservation
planning, technical consultation, and assistance with design
and implementation of conservation practices.
``(B) Technical infrastructure, including activities,
processes, tools, and agency functions needed to support
delivery of technical
[[Page H4500]]
services, such as technical standards, resource inventories,
training, data, technology, monitoring, and effects
analyses.''.
SEC. 2002. REVIEW OF GOOD FAITH DETERMINATIONS RELATED TO
HIGHLY ERODIBLE LAND CONSERVATION.
Section 1212 of the Food Security Act of 1985 (16 U.S.C.
3812) is amended by striking subsection (f) and inserting the
following new subsection:
``(f) Graduated Penalties.--
``(1) Ineligibility.--No person shall become ineligible
under section 1211 for program loans, payments, and benefits
as a result of the failure of the person to actively apply a
conservation plan, if the Secretary determines that the
person has acted in good faith and without an intent to
violate this subtitle.
``(2) Eligible reviewers.--A determination of the
Secretary, or a designee of the Secretary, under paragraph
(1) shall be reviewed by the applicable--
``(A) State Executive Director, with the technical
concurrence of the State Conservationist; or
``(B) district director, with the technical concurrence of
the area conservationist.
``(3) Period for implementation.--A person who meets the
requirements of paragraph (1) shall be allowed a reasonable
period of time, as determined by the Secretary, but not to
exceed 1 year, during which to implement the measures and
practices necessary to be considered to be actively applying
the conservation plan of the person.
``(4) Penalties.--
``(A) Application.--This paragraph applies if the Secretary
determines that--
``(i) a person has failed to comply with section 1211 with
respect to highly erodible cropland, and has acted in good
faith and without an intent to violate section 1211; or
``(ii) the violation--
``(I) is technical and minor in nature; and
``(II) has a minimal effect on the erosion control purposes
of the conservation plan applicable to the land on which the
violation has occurred.
``(B) Reduction.--If this paragraph applies under
subparagraph (A), the Secretary shall, in lieu of applying
the ineligibility provisions of section 1211, reduce program
benefits described in section 1211 that the producer would
otherwise be eligible to receive in a crop year by an amount
commensurate with the seriousness of the violation, as
determined by the Secretary.
``(5) Subsequent crop years.--Any person whose benefits are
reduced for any crop year under this subsection shall
continue to be eligible for all of the benefits described in
section 1211 for any subsequent crop year if, prior to the
beginning of the subsequent crop year, the Secretary
determines that the person is actively applying a
conservation plan according to the schedule specified in the
plan.''.
SEC. 2003. REVIEW OF GOOD FAITH DETERMINATIONS RELATED TO
WETLAND CONSERVATION.
Section 1222(h) of the Food Security Act of 1985 (16 U.S.C.
3822(h)) is amended--
(1) by redesignating paragraph (2) as paragraph (3);
(2) by inserting after paragraph (1) the following new
paragraph:
``(2) Eligible reviewers.--A determination of the
Secretary, or a designee of the Secretary, under paragraph
(1) shall be reviewed by the applicable--
``(A) State Executive Director, with the technical
concurrence of the State Conservationist; or
``(B) district director, with the technical concurrence of
the area conservationist.''; and
(3) in paragraph (3) (as redesignated by paragraph (1)), by
inserting ``be'' before ``actively''.
Subtitle B--Conservation Reserve Program
SEC. 2101. EXTENSION OF CONSERVATION RESERVE PROGRAM.
Section 1231(a) of the Food Security Act of 1985 (16 U.S.C.
3831(a)) is amended--
(1) by striking ``2007 calendar year'' and inserting ``2012
fiscal year''; and
(2) by inserting before the period the following: ``and to
address issues raised by State, regional, and national
conservation initiatives''; and
SEC. 2102. LAND ELIGIBLE FOR ENROLLMENT IN CONSERVATION
RESERVE.
Section 1231(b) of the Food Security Act of 1985 (16 U.S.C.
3831(b)) is amended--
(1) in paragraph (1)(B)--
(A) by striking ``Farm Security and Rural Investment Act of
2002'' and inserting ``Food, Conservation, and Energy Act of
2008''; and
(B) by striking the period at the end and inserting a
semicolon; and
(2) in paragraph (4)--
(A) in subparagraph (C), by striking ``; or'' and inserting
a semicolon;
(B) in subparagraph (D), by striking ``and'' at the end and
inserting ``or''; and
(C) in subparagraph (E), by inserting ``or'' after the
semicolon at the end.
SEC. 2103. MAXIMUM ENROLLMENT OF ACREAGE IN CONSERVATION
RESERVE.
Section 1231(d) of the Food Security Act of 1985 (16 U.S.C.
3831(d)) is amended--
(1) by striking ``2007 calendar years'' and inserting
``2009 fiscal years'';
(2) by striking ``( 16 U.S.C.'' and inserting ``(16
U.S.C.''; and
(3) by adding at the end the following new sentence:
``During fiscal years 2010, 2011, and 2012, the Secretary may
maintain up to 32,000,000 acres in the conservation reserve
at any 1 time.''.
SEC. 2104. DESIGNATION OF CONSERVATION PRIORITY AREAS.
Section 1231(f) of the Food Security Act of 1985 (16 U.S.C.
3831(f)) is amended by striking ``the Chesapeake Bay Region
(Pennsylvania, Maryland, and Virginia)'' and inserting ``the
Chesapeake Bay Region''.
SEC. 2105. TREATMENT OF MULTI-YEAR GRASSES AND LEGUMES.
Subsection (g) of section 1231 of the Food Security Act of
1985 (16 U.S.C. 3831) is amended to read as follows:
``(g) Multi-Year Grasses and Legumes.--
``(1) In general.--For purposes of this subchapter, alfalfa
and other multi-year grasses and legumes in a rotation
practice, approved by the Secretary, shall be considered
agricultural commodities.
``(2) Cropping history.--Alfalfa, when grown as part of a
rotation practice, as determined by the Secretary, is an
agricultural commodity subject to the cropping history
criteria under subsection (b)(1)(B) for the purpose of
determining whether highly erodible cropland has been planted
or considered planted for 4 of the 6 years referred to in
such subsection.''.
SEC. 2106. REVISED PILOT PROGRAM FOR ENROLLMENT OF WETLAND
AND BUFFER ACREAGE IN CONSERVATION RESERVE.
(a) Revised Program.--
(1) In general.--Title XII of the Food Security Act of 1985
is amended by inserting after section 1231 (16 U.S.C. 3831)
the following new section:
``SEC. 1231B. PILOT PROGRAM FOR ENROLLMENT OF WETLAND AND
BUFFER ACREAGE IN CONSERVATION RESERVE.
``(a) Program Required.--
``(1) In general.--During the 2008 through 2012 fiscal
years, the Secretary shall carry out a program in each State
under which the Secretary shall enroll eligible acreage
described in subsection (b).
``(2) Participation among states.--The Secretary shall
ensure, to the maximum extent practicable, that owners and
operators in each State have an equitable opportunity to
participate in the program established under this section.
``(b) Eligible Acreage.--
``(1) Wetland and related land.--Subject to subsections (c)
and (d), an owner or operator may enroll in the conservation
reserve, pursuant to the program established under this
section, land--
``(A) that is wetland (including a converted wetland
described in section 1222(b)(1)(A)) that had a cropping
history during at least 3 of the immediately preceding 10
crop years;
``(B) on which a constructed wetland is to be developed
that will receive flow from a row crop agriculture drainage
system and is designed to provide nitrogen removal in
addition to other wetland functions;
``(C) that was devoted to commercial pond-raised
aquaculture in any year during the period of calendar years
2002 through 2007; or
``(D) that, after January 1, 1990, and before December 31,
2002, was--
``(i) cropped during at least 3 of 10 crop years; and
``(ii) subject to the natural overflow of a prairie
wetland.
``(2) Buffer acreage.--Subject to subsections (c) and (d),
an owner or operator may enroll in the conservation reserve,
pursuant to the program established under this section,
buffer acreage that--
``(A) with respect to land described in subparagraph (A),
(B), or (C) of paragraph (1)--
``(i) is contiguous to such land
``(ii) is used to protect such land; and
``(iii) is of such width as the Secretary determines is
necessary to protect such land, taking into consideration and
accommodating the farming practices (including the
straightening of boundaries to accommodate machinery) used
with respect to the cropland that surrounds such land; and
``(B) with respect to land described in subparagraph (D) of
paragraph (1), enhances a wildlife benefit to the extent
practicable in terms of upland to wetland ratios, as
determined by the Secretary.
``(c) Program Limitations.--
``(1) Acreage limitation.--The Secretary may enroll in the
conservation reserve, pursuant to the program established
under this section, not more than--
``(A) 100,000 acres in any State; and
``(B) a total of 1,000,000 acres.
``(2) Relationship to maximum enrollment.--Subject to
paragraph (3), any acreage enrolled in the conservation
reserve under this section shall be considered acres
maintained in the conservation reserve.
``(3) Relationship to other enrolled acreage.--Acreage
enrolled in the conservation reserve under this section shall
not affect for any fiscal year the quantity of--
``(A) acreage enrolled to establish conservation buffers as
part of the program announced on March 24, 1998 (63 Fed. Reg.
14109); or
``(B) acreage enrolled into the conservation reserve
enhancement program announced on May 27, 1998 (63 Fed. Reg.
28965).
``(4) Review; potential increase in enrollment acreage.--
The Secretary shall conduct a review of the program
established under this section with respect to each State
that has enrolled land in the conservation reserve pursuant
to the program. As a result of the review, the Secretary may
increase the number of acres that may be enrolled in a State
under the program to not more than 200,000 acres,
notwithstanding paragraph (1)(A).
[[Page H4501]]
``(d) Owner or Operator Enrollment Limitations.--
``(1) Wetland and related land.--
``(A) Wetlands and constructed wetlands.--The maximum size
of any land described in subparagraph (A) or (B) of
subsection (b)(1) that an owner or operator may enroll in the
conservation reserve, pursuant to the program established
under this section, shall be 40 contiguous acres.
``(B) Flooded farmland.--The maximum size of any land
described in subparagraph (D) of subsection (b)(1) that an
owner or operator may enroll in the conservation reserve,
pursuant to the program established under this section, shall
be 20 contiguous acres.
``(C) Coverage.--All acres described in subparagraph (A) or
(B), including acres that are ineligible for payment, shall
be covered by the conservation contract.
``(2) Buffer acreage.--The maximum size of any buffer
acreage described in subsection (b)(2) that an owner or
operator may enroll in the conservation reserve under this
section shall be determined by the Secretary in consultation
with the State Technical Committee.
``(3) Tracts.--Except for land described in subsection
(b)(1)(C) and buffer acreage related to such land, the
maximum size of any eligible acreage described in subsection
(b)(1) in a tract of an owner or operator enrolled in the
conservation reserve under this section shall be 40 acres.
``(e) Duties of Owners and Operators.--During the term of a
contract entered into under the program established under
this section, an owner or operator shall agree--
``(1) to restore the hydrology of the wetland within the
eligible acreage to the maximum extent practicable, as
determined by the Secretary;
``(2) to establish vegetative cover (which may include
emerging vegetation in water and bottomland hardwoods,
cypress, and other appropriate tree species) on the eligible
acreage, as determined by the Secretary;
``(3) to a general prohibition of commercial use of the
enrolled land; and
``(4) to carry out other duties described in section 1232.
``(f) Duties of the Secretary.--
``(1) In general.--Except as provided in paragraphs (2) and
(3), in return for a contract entered into under this
section, the Secretary shall--
``(A) make payments to the owner or operator based on
rental rates for cropland; and
``(B) provide assistance to the owner or operator in
accordance with sections 1233 and 1234.
``(2) Contract offers and payments.--The Secretary shall
use the method of determination described in section
1234(c)(2)(B) to determine the acceptability of contract
offers and the amount of rental payments under this section.
``(3) Incentives.--The amounts payable to owners and
operators in the form of rental payments under contracts
entered into under this section shall reflect incentives that
are provided to owners and operators to enroll filterstrips
in the conservation reserve under section 1234.''.
(2) Repeal of superceded program.--Section 1231 of the Food
Security Act of 1985 (16 U.S.C. 3831) is amended--
(A) by striking subsection (h); and
(B) by redesignating subsections (i) and (j) as subsections
(h) and (i), respectively.
(b) Conforming Changes to Emergency Forestry Conservation
Reserve Program.--Subsection (k) of section 1231 of the Food
Security Act of 1985 (16 U.S.C. 3831) is amended--
(1) by striking ``(k) Emergency Forestry Conservation
Reserve Program.--'' and inserting the following:
``SEC. 1231A. EMERGENCY FORESTRY CONSERVATION RESERVE
PROGRAM.'';
(2) by striking ``subsection'' each place it appears (other
than paragraph (3)(C)(ii)) and inserting ``section'';
(3) by redesignating paragraphs (1), (2), and (3) as
subsections (a), (b), and (c), respectively;
(4) in subsection (a), as so redesignated, by redesignating
subparagraphs (A) and (B) as paragraphs (1) and (2),
respectively; and
(5) in subsection (c), as so redesignated--
(A) by redesignating subparagraphs (A) through (I) as
paragraphs (1) through (9), respectively;
(B) in paragraph (1), as so redesignated, by striking
``subparagraph (B)'' and ``subparagraph (G)'' and inserting
``paragraph (2)'' and ``paragraph (7)'', respectively;
(C) in paragraph (3), as so redesignated--
(i) by redesignating clauses (i) and (ii) as subparagraphs
(A) and (B), respectively; and
(ii) by striking ``subsection (d)'' and inserting ``section
1231(d)'';
(D) in paragraph (4), as so redesignated, by redesignating
clauses (i) and (ii) as subparagraphs (A) and (B),
respectively;
(E) in paragraph (5), as so redesignated--
(i) by redesignating clauses (i) through (v) as
subparagraphs (A) through (E), respectively, and subclauses
(I) and (II) as clauses (i) and (ii), respectively;
(ii) in subparagraph (B), as so redesignated, by striking
``clause (i)(I)'' and inserting ``subparagraph (A)(i)''; and
(iii) in subparagraph (C), as so redesignated, by striking
``clause (i)(II)'' and inserting ``subparagraph (A)(ii)'';
and
(F) in paragraph (9), as so redesignated, by redesignating
clauses (i) through (iii) as subparagraphs (A) through (C),
respectively, and subclauses (I) through (III) as clauses (i)
through (iii), respectively.
SEC. 2107. ADDITIONAL DUTY OF PARTICIPANTS UNDER CONSERVATION
RESERVE CONTRACTS.
Section 1232(a) of the Food Security Act of 1985 (16 U.S.C.
3832(a)) is amended--
(1) by redesignating paragraphs (5) through (10) as
paragraphs (6) through (11), respectively; and
(2) by inserting after paragraph (4) the following new
paragraph:
``(5) to undertake management on the land as needed
throughout the term of the contract to implement the
conservation plan;''.
SEC. 2108. MANAGED HAYING, GRAZING, OR OTHER COMMERCIAL USE
OF FORAGE ON ENROLLED LAND AND INSTALLATION OF
WIND TURBINES.
(a) General Prohibition; Exceptions.--Section 1232(a) of
the Food Security Act of 1985 (16 U.S.C. 3832(a)) is amended
by striking paragraph (8), as redesignated by section 2107,
and inserting the following new paragraph:
``(8) not to conduct any harvesting or grazing, nor
otherwise make commercial use of the forage, on land that is
subject to the contract, nor adopt any similar practice
specified in the contract by the Secretary as a practice that
would tend to defeat the purposes of the contract, except
that the Secretary may permit, consistent with the
conservation of soil, water quality, and wildlife habitat
(including habitat during nesting seasons for birds in the
area)--
``(A) managed harvesting (including the managed harvesting
of biomass), except that in permitting managed harvesting,
the Secretary, in coordination with the State technical
committee--
``(i) shall develop appropriate vegetation management
requirements; and
``(ii) shall identify periods during which managed
harvesting may be conducted;
``(B) harvesting and grazing or other commercial use of the
forage on the land that is subject to the contract in
response to a drought or other emergency;
``(C) routine grazing or prescribed grazing for the control
of invasive species, except that in permitting such routine
grazing or prescribed grazing, the Secretary, in coordination
with the State technical committee--
``(i) shall develop appropriate vegetation management
requirements and stocking rates for the land that are
suitable for continued routine grazing; and
``(ii) shall establish the frequency during which routine
grazing may be conducted, taking into consideration regional
differences such as--
``(I) climate, soil type, and natural resources;
``(II) the number of years that should be required between
routine grazing activities; and
``(III) how often during a year in which routine grazing is
permitted that routine grazing should be allowed to occur;
and
``(D) the installation of wind turbines, except that in
permitting the installation of wind turbines, the Secretary
shall determine the number and location of wind turbines that
may be installed, taking into account--
``(i) the location, size, and other physical
characteristics of the land;
``(ii) the extent to which the land contains wildlife and
wildlife habitat; and
``(iii) the purposes of the conservation reserve program
under this subchapter;''.
(b) Rental Payment Reduction.--Section 1232 of the Food
Security Act of 1985 (16 U.S.C. 3832) is amended by adding at
the end the following new subsection:
``(d) Rental Payment Reduction for Certain Authorized Uses
of Enrolled Land.--In the case of an authorized activity
under subsection (a)(8) on land that is subject to a contract
under this subchapter, the Secretary shall reduce the rental
payment otherwise payable under the contract by an amount
commensurate with the economic value of the authorized
activity.''.
SEC. 2109. COST SHARING PAYMENTS RELATING TO TREES,
WINDBREAKS, SHELTERBELTS, AND WILDLIFE
CORRIDORS.
Section 1234(b) of the Food Security Act of 1985 (16 U.S.C.
3834(b)) is amended by striking paragraph (3) and inserting
the following new paragraph:
``(3) Trees, windbreaks, shelterbelts, and wildlife
corridors.--
``(A) Applicability.--This paragraph applies to--
``(i) land devoted to the production of hardwood trees,
windbreaks, shelterbelts, or wildlife corridors under a
contract entered into under this subchapter after November
28, 1990;
``(ii) land converted to such production under section
1235A; and
``(iii) land on which an owner or operator agrees to
conduct thinning authorized by section 1232(a)(9), if the
thinning is necessary to improve the condition of resources
on the land.
``(B) Payments.--
``(i) Percentage.--In making cost share payments to an
owner or operator of land described in subparagraph (A), the
Secretary shall pay 50 percent of the reasonable and
necessary costs incurred by the owner or operator for
maintaining trees or shrubs, including the cost of replanting
(if the trees or shrubs were lost due to conditions beyond
the control of the owner or operator) or thinning.
[[Page H4502]]
``(ii) Duration.--The Secretary shall make payments as
described in clause (i) for a period of not less than 2
years, but not more than 4 years, beginning on the date of--
``(I) the planting of the trees or shrubs; or
``(II) the thinning of existing stands to improve the
condition of resources on the land.''.
SEC. 2110. EVALUATION AND ACCEPTANCE OF CONTRACT OFFERS,
ANNUAL RENTAL PAYMENTS, AND PAYMENT
LIMITATIONS.
(a) Evaluation and Acceptance of Contract Offers.--Section
1234(c) of the Food Security Act of 1985 (16 U.S.C. 3834(c))
is amended by striking paragraph (3) and inserting the
following new paragraph:
``(3) Acceptance of contract offers.--
``(A) Evaluation of offers.--In determining the
acceptability of contract offers, the Secretary may take into
consideration the extent to which enrollment of the land that
is the subject of the contract offer would improve soil
resources, water quality, or wildlife habitat or provide
other environmental benefits.
``(B) Establishment of different criteria in various states
and regions.--The Secretary may establish different criteria
for determining the acceptability of contract offers in
various States and regions of the United States based on the
extent to which water quality or wildlife habitat may be
improved or erosion may be abated.
``(C) Local preference.--In determining the acceptability
of contract offers for new enrollments, the Secretary shall
accept, to the maximum extent practicable, an offer from an
owner or operator that is a resident of the county in which
the land is located or of a contiguous county if, as
determined by the Secretary, the land would provide at least
equivalent conservation benefits to land under competing
offers.''.
(b) Annual Survey of Dryland and Irrigated Cash Rental
Rates.--
(1) Annual estimates required.--Section 1234(c) of the Food
Security Act of 1985 (16 U.S.C. 3834(c)) is amended by adding
at the end the following new paragraph:
``(5) Rental rates.--
``(A) Annual estimates.--The Secretary (acting through the
National Agricultural Statistics Service) shall conduct an
annual survey of per acre estimates of county average market
dryland and irrigated cash rental rates for cropland and
pastureland in all counties or equivalent subdivisions within
each State that have 20,000 acres or more of cropland and
pastureland.
``(B) Public availability of estimates.--The estimates
derived from the annual survey conducted under subparagraph
(A) shall be maintained on a website of the Department of
Agriculture for use by the general public.''.
(2) First survey.--The first survey required by paragraph
(5) of section 1234(c) of the Food Security Act of 1985 (16
U.S.C. 3834(c)), as added by subsection (a), shall be
conducted not later than 1 year after the date of enactment
of this Act.
(c) Payment Limitations.--Section 1234(f) of the Food
Security Act of 1985 (16 U.S.C. 3834(f)) is amended--
(1) in paragraph (1), by striking ``made to a person'' and
inserting ``received by a person or legal entity, directly or
indirectly,'';
(2) by striking paragraph (2); and
(3) in paragraph (4), by striking ``any person'' and
inserting ``any person or legal entity''.
SEC. 2111. CONSERVATION RESERVE PROGRAM TRANSITION INCENTIVES
FOR BEGINNING FARMERS OR RANCHERS AND SOCIALLY
DISADVANTAGED FARMERS OR RANCHERS.
(a) Contract Modification Authority.--Section 1235(c)(1)(B)
of the Food Security Act of 1985 (16 U.S.C. 3835(c)(1)(B)) is
amended--
(1) in clause (ii), by striking ``or'' at the end;
(2) by redesignating clause (iii) as clause (iv); and
(3) by inserting after clause (ii) the following new
clause:
``(iii) to facilitate a transition of land subject to the
contract from a retired or retiring owner or operator to a
beginning farmer or rancher or socially disadvantaged farmer
or rancher for the purpose of returning some or all of the
land into production using sustainable grazing or crop
production methods; or''.
(b) Transition Option.--Section 1235 of the Food Security
Act of 1985 (16 U.S.C. 3835) is amended by adding at the end
the following new subsection:
``(f) Transition Option for Certain Farmers or Ranchers.--
``(1) Duties of the secretary.--In the case of a contract
modification approved in order to facilitate the transfer, as
described in subsection (c)(1)(B)(iii), of land to a
beginning farmer or rancher or socially disadvantaged farmer
or rancher (in this subsection referred to as a `covered
farmer or rancher'), the Secretary shall--
``(A) beginning on the date that is 1 year before the date
of termination of the contract--
``(i) allow the covered farmer or rancher, in conjunction
with the retired or retiring owner or operator, to make
conservation and land improvements; and
``(ii) allow the covered farmer or rancher to begin the
certification process under the Organic Foods Production Act
of 1990 (7 U.S.C. 6501 et seq.);
``(B) beginning on the date of termination of the contract,
require the retired or retiring owner or operator to sell or
lease (under a long-term lease or a lease with an option to
purchase) to the covered farmer or rancher the land subject
to the contract for production purposes;
``(C) require the covered farmer or rancher to develop and
implement a conservation plan;
``(D) provide to the covered farmer or rancher an
opportunity to enroll in the conservation stewardship program
or the environmental quality incentives program by not later
than the date on which the farmer or rancher takes possession
of the land through ownership or lease; and
``(E) continue to make annual payments to the retired or
retiring owner or operator for not more than an additional 2
years after the date of termination of the contract, if the
retired or retiring owner or operator is not a family member
(as defined in section 1001A(b)(3)(B) of this Act) of the
covered farmer or rancher.
``(2) Reenrollment.--The Secretary shall provide a covered
farmer or rancher with the option to reenroll any applicable
partial field conservation practice that--
``(A) is eligible for enrollment under the continuous
signup requirement of section 1231(h)(4)(B); and
``(B) is part of an approved conservation plan.''.
Subtitle C--Wetlands Reserve Program
SEC. 2201. ESTABLISHMENT AND PURPOSE OF WETLANDS RESERVE
PROGRAM.
Subsection (a) of section 1237 of the Food Security Act of
1985 (16 U.S.C. 3837) is amended to read as follows:
``(a) Establishment and Purposes.--
``(1) Establishment.--The Secretary shall establish a
wetlands reserve program to assist owners of eligible lands
in restoring and protecting wetlands.
``(2) Purposes.--The purposes of the wetlands reserve
program are to restore, protect, or enhance wetlands on
private or tribal lands that are eligible under subsections
(c) and (d).''.
SEC. 2202. MAXIMUM ENROLLMENT AND ENROLLMENT METHODS.
Section 1237(b) of the Food Security Act of 1985 (16 U.S.C.
3837(b)) is amended--
(1) by striking paragraph (1) and inserting the following
new paragraph:
``(1) Maximum enrollment.--The total number of acres
enrolled in the wetlands reserve program shall not exceed
3,041,200 acres.'';
(2) in paragraph (2), by striking ``The Secretary'' and
inserting ``Subject to paragraph (3), the Secretary''; and
(3) by adding at the end the following new paragraph:
``(3) Acreage owned by indian tribes.--In the case of
acreage owned by an Indian tribe, the Secretary shall enroll
acreage into the wetlands reserve program through the use
of--
``(A) a 30-year contract (the value of which shall be
equivalent to the value of a 30-year easement);
``(B) restoration cost-share agreements; or
``(C) any combination of the options described in
subparagraphs (A) and (B).''.
SEC. 2203. DURATION OF WETLANDS RESERVE PROGRAM AND LANDS
ELIGIBLE FOR ENROLLMENT.
(a) In General.--Section 1237(c) of the Food Security Act
of 1985 (16 U.S.C. 3837(c)) is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``2007 calendar'' and inserting ``2012
fiscal''; and
(B) by inserting ``private or tribal'' before ``land'' the
second place it appears;
(2) by striking paragraph (2) and inserting the following
new paragraph:
``(2) such land is--
``(A) farmed wetland or converted wetland, together with
the adjacent land that is functionally dependent on the
wetlands, except that converted wetland with respect to which
the conversion was not commenced prior to December 23, 1985,
shall not be eligible to be enrolled in the program under
this section; or
``(B) cropland or grassland that was used for agricultural
production prior to flooding from the natural overflow of a
closed basin lake or pothole, as determined by the Secretary,
together (where practicable) with the adjacent land that is
functionally dependent on the cropland or grassland; and''.
(b) Change of Ownership.--Section 1237E(a) of the Food
Security Act of 1985 (16 U.S.C. 3837e(a)) is amended by
striking ``in the preceding 12 months'' and inserting
``during the preceding 7-year period''.
(c) Annual Survey and Reallocation.--Section 1237F of the
Food Security Act of 1985 (16 U.S.C. 3837f) is amended by
adding at the end the following new subsection:
``(c) Prairie Pothole Region Survey and Reallocation.--
``(1) Survey.--The Secretary shall conduct a survey during
fiscal year 2008 and each subsequent fiscal year for the
purpose of determining interest and allocations for the
Prairie Pothole Region to enroll eligible land described in
section 1237(c)(2)(B).
``(2) Annual adjustment.--The Secretary shall make an
adjustment to the allocation for an interested State for a
fiscal year, based on the results of the survey conducted
under paragraph (1) for the State during the previous fiscal
year.''.
SEC. 2204. TERMS OF WETLANDS RESERVE PROGRAM EASEMENTS.
Section 1237A(b)(2)(B) of the Food Security Act of 1985 (16
U.S.C. 3837a(b)(2)(B)) is amended--
(1) in clause (i), by striking ``or'' at the end;
[[Page H4503]]
(2) in clause (ii), by striking ``; and'' and inserting ``;
or''; and
(3) by adding at the end the following new clause:
``(iii) to meet habitat needs of specific wildlife species;
and''.
SEC. 2205. COMPENSATION FOR EASEMENTS UNDER WETLANDS RESERVE
PROGRAM.
Subsection (f) of section 1237A of the Food Security Act of
1985 (16 U.S.C. 3837a) is amended to read as follows:
``(f) Compensation.--
``(1) Determination.--Effective on the date of the
enactment of the Food, Conservation, and Energy Act of 2008,
the Secretary shall pay as compensation for a conservation
easement acquired under this subchapter the lowest of--
``(A) the fair market value of the land, as determined by
the Secretary, using the Uniform Standards of Professional
Appraisal Practices or an area-wide market analysis or
survey;
``(B) the amount corresponding to a geographical cap, as
determined by the Secretary in regulations; or
``(C) the offer made by the landowner.
``(2) Form of payment.--Compensation for an easement shall
be provided by the Secretary in the form of a cash payment,
in an amount determined under paragraph (1) and specified in
the easement agreement.
``(3) Payment schedule for easements.--
``(A) Easements valued at $500,000 or less.--For easements
valued at $500,000 or less, the Secretary may provide
easement payments in not more than 30 annual payments.
``(B) Easements in excess of $500,000.--For easements
valued at more than $500,000, the Secretary may provide
easement payments in at least 5, but not more than 30 annual
payments, except that, if the Secretary determines it would
further the purposes of the program, the Secretary may make a
lump sum payment for such an easement.
``(4) Restoration agreement payment limitation.--Payments
made to a person or legal entity, directly or indirectly,
pursuant to a restoration cost-share agreement under this
subchapter may not exceed, in the aggregate, $50,000 per
year.
``(5) Enrollment procedure.--Lands may be enrolled under
this subchapter through the submission of bids under a
procedure established by the Secretary.''.
SEC. 2206. WETLANDS RESERVE ENHANCEMENT PROGRAM AND RESERVED
RIGHTS PILOT PROGRAM.
Section 1237A of the Food Security Act of 1985 (16 U.S.C.
3837a) is amended by adding at the end the following new
subsection:
``(h) Wetlands Reserve Enhancement Program.--
``(1) Program authorized.--The Secretary may enter into 1
or more agreements with a State (including a political
subdivision or agency of a State), nongovernmental
organization, or Indian tribe to carry out a special wetlands
reserve enhancement program that the Secretary determines
would advance the purposes of this subchapter.
``(2) Reserved rights pilot program.--
``(A) Reservation of grazing rights.--As part of the
wetlands reserve enhancement program, the Secretary shall
carry out a pilot program for land in which a landowner may
reserve grazing rights in the warranty easement deed
restriction if the Secretary determines that the reservation
and use of the grazing rights--
``(i) is compatible with the land subject to the easement;
``(ii) is consistent with the long-term wetland protection
and enhancement goals for which the easement was established;
and
``(iii) complies with a conservation plan.
``(B) Duration.--The pilot program established under this
paragraph shall terminate on September 30, 2012.''.
SEC. 2207. DUTIES OF SECRETARY OF AGRICULTURE UNDER WETLANDS
RESERVE PROGRAM.
Section 1237C of the Food Security Act of 1985 (16 U.S.C.
3837c) is amended--
(1) in subsection (a)(1), by inserting ``including
necessary maintenance activities,'' after ``values,''; and
(2) by striking subsection (c) and inserting the following
new subsection:
``(c) Ranking of Offers.--
``(1) Conservation benefits and funding considerations.--
When evaluating offers from landowners, the Secretary may
consider--
``(A) the conservation benefits of obtaining an easement or
other interest in the land;
``(B) the cost-effectiveness of each easement or other
interest in eligible land, so as to maximize the
environmental benefits per dollar expended; and
``(C) whether the landowner or another person is offering
to contribute financially to the cost of the easement or
other interest in the land to leverage Federal funds.
``(2) Additional considerations.--In determining the
acceptability of easement offers, the Secretary may take into
consideration--
``(A) the extent to which the purposes of the easement
program would be achieved on the land;
``(B) the productivity of the land; and
``(C) the on-farm and off-farm environmental threats if the
land is used for the production of agricultural
commodities.''.
SEC. 2208. PAYMENT LIMITATIONS UNDER WETLANDS RESERVE
CONTRACTS AND AGREEMENTS.
Section 1237D(c)(1) of the Food Security Act of 1985 (16
U.S.C. 3837d(c)(1)) is amended--
(1) by striking ``The total amount of easement payments
made to a person'' and inserting ``The total amount of
payments that a person or legal entity may receive, directly
or indirectly,''; and
(2) by inserting ``or under 30-year contracts'' before the
period at the end.
SEC. 2209. REPEAL OF PAYMENT LIMITATIONS EXCEPTION FOR STATE
AGREEMENTS FOR WETLANDS RESERVE ENHANCEMENT.
Section 1237D(c) of the Food Security Act of 1985 (16
U.S.C. 3837d(c)) is amended by striking paragraph (4).
SEC. 2210. REPORT ON IMPLICATIONS OF LONG-TERM NATURE OF
CONSERVATION EASEMENTS.
(a) Report Required.--Not later than January 1, 2010, the
Secretary of Agriculture shall submit to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a
report that evaluates the implications of the long-term
nature of conservation easements granted under section 1237A
of the Food Security Act of 1985 (16 U.S.C. 3837a) on
resources of the Department of Agriculture.
(b) Inclusions.--The report required by subsection (a)
shall include the following:
(1) Data relating to the number and location of
conservation easements granted under that section that the
Secretary holds or has a significant role in monitoring or
managing.
(2) An assessment of the extent to which the oversight of
the conservation easement agreements impacts the availability
of resources, including technical assistance.
(3) An assessment of the uses and value of agreements with
partner organizations.
(4) Any other relevant information relating to costs or
other effects that would be helpful to the Committees
referred to in subsection (a).
Subtitle D--Conservation Stewardship Program
SEC. 2301. CONSERVATION STEWARDSHIP PROGRAM.
(a) Establishment of Program.--Chapter 2 of subtitle D of
title XII of the Food Security Act of 1985 is amended--
(1) by redesignating subchapters B (farmland protection
program) and C (grassland reserve program) as subchapters C
and D, respectively; and
(2) by inserting after subchapter A the following new
subchapter:
``Subchapter B--Conservation Stewardship Program
``SEC. 1238D. DEFINITIONS.
``In this subchapter:
``(1) Conservation activities.--
``(A) In general.--The term `conservation activities' means
conservation systems, practices, or management measures that
are designed to address a resource concern.
``(B) Inclusions.--The term `conservation activities'
includes--
``(i) structural measures, vegetative measures, and land
management measures, including agriculture drainage
management systems, as determined by the Secretary; and
``(ii) planning needed to address a resource concern.
``(2) Conservation measurement tools.--The term
`conservation measurement tools' means procedures to estimate
the level of environmental benefit to be achieved by a
producer in implementing conservation activities, including
indices or other measures developed by the Secretary.
``(3) Conservation stewardship plan.--The term
`conservation stewardship plan' means a plan that--
``(A) identifies and inventories resource concerns;
``(B) establishes benchmark data and conservation
objectives;
``(C) describes conservation activities to be implemented,
managed, or improved; and
``(D) includes a schedule and evaluation plan for the
planning, installation, and management of the new and
existing conservation activities.
``(4) Priority resource concern.--The term `priority
resource concern' means a resource concern that is identified
at the State level, in consultation with the State Technical
Committee, as a priority for a particular watershed or area
of the State.
``(5) Program.--The term `program' means the conservation
stewardship program established by this subchapter.
``(6) Resource concern.--The term `resource concern' means
a specific natural resource impairment or problem, as
determined by the Secretary, that--
``(A) represents a significant concern in a State or
region; and
``(B) is likely to be addressed successfully through the
implementation of conservation activities by producers on
land eligible for enrollment in the program.
``(7) Stewardship threshold.--The term `stewardship
threshold' means the level of natural resource conservation
and environmental management required, as determined by the
Secretary using conservation measurement tools, to improve
and conserve the quality and condition of a resource concern.
``SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM.
``(a) Establishment and Purpose.--During each of fiscal
years 2009 through 2012, the Secretary shall carry out a
conservation stewardship program to encourage producers to
address resource concerns in a comprehensive manner--
``(1) by undertaking additional conservation activities;
and
[[Page H4504]]
``(2) by improving, maintaining and managing existing
conservation activities.
``(b) Eligible Land.--
``(1) In general.--Except as provided in subsection (c),
the following land is eligible for enrollment in the program:
``(A) Private agricultural land (including cropland,
grassland, prairie land, improved pastureland, rangeland, and
land used for agro-forestry).
``(B) Agricultural land under the jurisdiction of an Indian
tribe.
``(C) Forested land that is an incidental part of an
agricultural operation.
``(D) Other private agricultural land (including cropped
woodland, marshes, and agricultural land used for the
production of livestock) on which resource concerns related
to agricultural production could be addressed by enrolling
the land in the program, as determined by the Secretary.
``(2) Special rule for nonindustrial private forest land.--
Nonindustrial private forest land is eligible for enrollment
in the program, except that not more than 10 percent of the
annual acres enrolled nationally in any fiscal year may be
nonindustrial private forest land.
``(3) Agricultural operation.--Eligible land shall include
all acres of an agricultural operation of a producer, whether
or not contiguous, that are under the effective control of
the producer at the time the producer enters into a
stewardship contract, and is operated by the producer with
equipment, labor, management, and production or cultivation
practices that are substantially separate from other
agricultural operations, as determined by the Secretary.
``(c) Exclusions.--
``(1) Land enrolled in other conservation programs.--
Subject to paragraph (2), the following land is not be
eligible for enrollment in the program:
``(A) Land enrolled in the conservation reserve program.
``(B) Land enrolled in the wetlands reserve program.
``(C) Land enrolled in the grassland reserve program.
``(2) Conversion to cropland.--Land used for crop
production after the date of enactment of the Food,
Conservation, and Energy Act of 2008 that had not been
planted, considered to be planted, or devoted to crop
production for at least 4 of the 6 years preceding that date
shall not be the basis for any payment under the program,
unless the land does not meet the requirement because--
``(A) the land had previously been enrolled in the
conservation reserve program;
``(B) the land has been maintained using long-term crop
rotation practices, as determined by the Secretary; or
``(C) the land is incidental land needed for efficient
operation of the farm or ranch, as determined by the
Secretary.
``SEC. 1238F. STEWARDSHIP CONTRACTS.
``(a) Submission of Contract Offers.--To be eligible to
participate in the conservation stewardship program, a
producer shall submit to the Secretary for approval a
contract offer that--
``(1) demonstrates to the satisfaction of the Secretary
that the producer, at the time of the contract offer, is
meeting the stewardship threshold for at least one resource
concern; and
``(2) would, at a minimum, meet or exceed the stewardship
threshold for at least 1 priority resource concern by the end
of the stewardship contract by--
``(A) installing and adopting additional conservation
activities; and
``(B) improving, maintaining, and managing conservation
activities in place at the operation of the producer at the
time the contract offer is accepted by the Secretary.
``(b) Evaluation of Contract Offers.--
``(1) Ranking of applications.--In evaluating contract
offers made by producers to enter into contracts under the
program, the Secretary shall rank applications based on--
``(A) the level of conservation treatment on all applicable
priority resource concerns at the time of application, based
to the maximum extent practicable on conservation measurement
tools;
``(B) the degree to which the proposed conservation
treatment on applicable priority resource concerns
effectively increases conservation performance, based to the
maximum extent possible on conservation measurement tools;
``(C) the number of applicable priority resource concerns
proposed to be treated to meet or exceed the stewardship
threshold by the end of the contract;
``(D) the extent to which other resource concerns, in
addition to priority resource concerns, will be addressed to
meet or exceed the stewardship threshold by the end of the
contract period; and
``(E) the extent to which the actual and anticipated
environmental benefits from the contract are provided at the
least cost relative to other similarly beneficial contract
offers.
``(2) Prohibition.--The Secretary may not assign a higher
priority to any application because the applicant is willing
to accept a lower payment than the applicant would otherwise
be eligible to receive.
``(3) Additional criteria.--The Secretary may develop and
use such additional criteria for evaluating applications to
enroll in the program that the Secretary determines are
necessary to ensure that national, State, and local
conservation priorities are effectively addressed.
``(c) Entering Into Contracts.--After a determination that
a producer is eligible for the program under subsection (a),
and a determination that the contract offer ranks
sufficiently high under the evaluation criteria under
subsection (b), the Secretary shall enter into a conservation
stewardship contract with the producer to enroll the land to
be covered by the contract.
``(d) Contract Provisions.--
``(1) Term.--A conservation stewardship contract shall be
for a term of 5 years.
``(2) Provisions.--The conservation stewardship contract of
a producer shall--
``(A) state the amount of the payment the Secretary agrees
to make to the producer for each year of the conservation
stewardship contract under section 1238G(e);
``(B) require the producer--
``(i) to implement during the term of the conservation
stewardship contract the conservation stewardship plan
approved by the Secretary;
``(ii) to maintain, and make available to the Secretary at
such times as the Secretary may request, appropriate records
showing the effective and timely implementation of the
conservation stewardship contract; and
``(iii) not to engage in any activity during the term of
the conservation stewardship contract on the eligible land
covered by the contract that would interfere with the
purposes of the conservation stewardship contract;
``(C) permit all economic uses of the land that--
``(i) maintain the agricultural nature of the land; and
``(ii) are consistent with the conservation purposes of the
conservation stewardship contract;
``(D) include a provision to ensure that a producer shall
not be considered in violation of the contract for failure to
comply with the contract due to circumstances beyond the
control of the producer, including a disaster or related
condition, as determined by the Secretary; and
``(E) include such other provisions as the Secretary
determines necessary to ensure the purposes of the program
are achieved.
``(e) Contract Renewal.--At the end of an initial
conservation stewardship contract of a producer, the
Secretary may allow the producer to renew the contract for
one additional five-year period if the producer--
``(1) demonstrates compliance with the terms of the
existing contract; and
``(2) agrees to adopt new conservation activities, as
determined by the Secretary.
``(f) Modification.--The Secretary may allow a producer to
modify a stewardship contract if the Secretary determines
that the modification is consistent with achieving the
purposes of the program.
``(g) Contract Termination.--
``(1) Voluntary termination.--A producer may terminate a
conservation stewardship contract if the Secretary determines
that termination would not defeat the purposes of the
program.
``(2) Involuntary termination.--The Secretary may terminate
a contract under this subchapter if the Secretary determines
that the producer violated the contract.
``(3) Repayment.--If a contract is terminated, the
Secretary may, consistent with the purposes of the program--
``(A) allow the producer to retain payments already
received under the contract; or
``(B) require repayment, in whole or in part, of payments
already received and assess liquidated damages.
``(4) Change of interest in land subject to a contract.--
``(A) In general.--Except as provided in paragraph (B), a
change in the interest of a producer in land covered by a
contract under this chapter shall result in the termination
of the contract with regard to that land.
``(B) Transfer of duties and rights.--Subparagraph (A)
shall not apply if--
``(i) within a reasonable period of time (as determined by
the Secretary) after the date of the change in the interest
in land covered by a contract under the program, the
transferee of the land provides written notice to the
Secretary that all duties and rights under the contract have
been transferred to, and assumed by, the transferee; and
``(ii) the transferee meets the eligibility requirements of
the program.
``(h) Coordination With Organic Certification.--The
Secretary shall establish a transparent means by which
producers may initiate organic certification under the
Organic Foods Production Act of 1990 (7 U.S.C. 6501 et. seq.)
while participating in a contract under this subchapter.
``(i) On-Farm Research and Demonstration or Pilot
Testing.--The Secretary may approve a contract offer under
this subchapter that includes--
``(1) on-farm conservation research and demonstration
activities; and
``(2) pilot testing of new technologies or innovative
conservation practices.
``SEC. 1238G. DUTIES OF THE SECRETARY.
``(a) In General.--To achieve the conservation goals of a
contract under the conservation stewardship program, the
Secretary shall--
``(1) make the program available to eligible producers on a
continuous enrollment basis with 1 or more ranking periods,
one of which shall occur in the first quarter of each fiscal
year;
``(2) identify not less than 3 nor more than 5 priority
resource concerns in a particular watershed or other
appropriate region or area within a State; and
``(3) develop reliable conservation measurement tools for
purposes of carrying out the program.
[[Page H4505]]
``(b) Allocation to States.--The Secretary shall allocate
acres to States for enrollment, based--
``(1) primarily on each State's proportion of eligible
acres under section 1238E(b)(1) to the total number of
eligible acres in all States; and
``(2) also on consideration of--
``(A) the extent and magnitude of the conservation needs
associated with agricultural production in each State;
``(B) the degree to which implementation of the program in
the State is, or will be, effective in helping producers
address those needs; and
``(C) other considerations to achieve equitable geographic
distribution of funds, as determined by the Secretary.
``(c) Specialty Crop and Organic Producers.--The Secretary
shall ensure that outreach and technical assistance are
available, and program specifications are appropriate to
enable specialty crop and organic producers to participate in
the program.
``(d) Acreage Enrollment Limitation.--During the period
beginning on October 1, 2008, and ending on September 30,
2017, the Secretary shall, to the maximum extent
practicable--
``(1) enroll in the program an additional 12,769,000 acres
for each fiscal year; and
``(2) manage the program to achieve a national average rate
of $18 per acre, which shall include the costs of all
financial assistance, technical assistance, and any other
expenses associated with enrollment or participation in the
program.
``(e) Conservation Stewardship Payments.--
``(1) Availability of payments.--The Secretary shall
provide a payment under the program to compensate the
producer for--
``(A) installing and adopting additional conservation
activities; and
``(B) improving, maintaining, and managing conservation
activities in place at the operation of the producer at the
time the contract offer is accepted by the Secretary.
``(2) Payment amount.--The amount of the conservation
stewardship payment shall be determined by the Secretary and
based, to the maximum extent practicable, on the following
factors:
``(A) Costs incurred by the producer associated with
planning, design, materials, installation, labor, management,
maintenance, or training.
``(B) Income forgone by the producer.
``(C) Expected environmental benefits as determined by
conservation measurement tools.
``(3) Exclusions.--A payment to a producer under this
subsection shall not be provided for--
``(A) the design, construction, or maintenance of animal
waste storage or treatment facilities or associated waste
transport or transfer devices for animal feeding operations;
or
``(B) conservation activities for which there is no cost
incurred or income forgone to the producer.
``(4) Timing of payments.--
``(A) In general.--The Secretary shall make payments as
soon as practicable after October 1 of each fiscal year for
activities carried out in the previous fiscal year.
``(B) Additional activities.--The Secretary shall make
payments to compensate producers for installation of
additional practices at the time at which the practices are
installed and adopted.
``(f) Supplemental Payments for Resource-Conserving Crop
Rotations.--
``(1) Availability of payments.--The Secretary shall
provide additional payments to producers that, in
participating in the program, agree to adopt resource-
conserving crop rotations to achieve beneficial crop
rotations as appropriate for the land of the producers.
``(2) Beneficial crop rotations.--The Secretary shall
determine whether a resource-conserving crop rotation is a
beneficial crop rotation eligible for additional payments
under paragraph (1), based on whether the resource-conserving
crop rotation is designed to provide natural resource
conservation and production benefits.
``(3) Eligibility.--To be eligible to receive a payment
described in paragraph (1), a producer shall agree to adopt
and maintain beneficial resource-conserving crop rotations
for the term of the contract.
``(4) Resource-conserving crop rotation.--In this
subsection, the term `resource-conserving crop rotation'
means a crop rotation that--
``(A) includes at least 1 resource conserving crop (as
defined by the Secretary);
``(B) reduces erosion;
``(C) improves soil fertility and tilth;
``(D) interrupts pest cycles; and
``(E) in applicable areas, reduces depletion of soil
moisture or otherwise reduces the need for irrigation.
``(g) Payment Limitations.--A person or legal entity may
not receive, directly or indirectly, payments under this
subchapter that, in the aggregate, exceed $200,000 for all
contracts entered into during any 5-year period, excluding
funding arrangements with federally recognized Indian tribes
or Alaska Native corporations, regardless of the number of
contracts entered into under the program by the person or
entity.
``(h) Regulations.--The Secretary shall promulgate
regulations that--
``(1) prescribe such other rules as the Secretary
determines to be necessary to ensure a fair and reasonable
application of the limitations established under subsection
(g); and
``(2) otherwise enable the Secretary to carry out the
program.
``(i) Data.--The Secretary shall maintain detailed and
segmented data on contracts and payments under the program to
allow for quantification of the amount of payments made for--
``(1) the installation and adoption of additional
conservation activities and improvements to conservation
activities in place on the operation of a producer at the
time the conservation stewardship offer is accepted by the
Secretary;
``(2) participation in research, demonstration, and pilot
projects; and
``(3) the development and periodic assessment and
evaluation of conservation plans developed under this
subchapter.''.
(b) Termination of Conservation Security Program Authority;
Effect on Existing Contracts.--Section 1238A of the Food
Security Act of 1985 (16 U.S.C. 3838a) is amended by adding
at the end the following new subsection:
``(g) Prohibition on Conservation Security Program
Contracts; Effect on Existing Contracts.--
``(1) Prohibition.--A conservation security contract may
not be entered into or renewed under this subchapter after
September 30, 2008.
``(2) Exception.--This subchapter, and the terms and
conditions of the conservation security program, shall
continue to apply to--
``(A) conservation security contracts entered into on or
before September 30, 2008; and
``(B) any conservation security contract entered into after
that date, but for which the application for the contract was
received during the 2008 sign-up period.
``(3) Effect on payments.--The Secretary shall make
payments under this subchapter with respect to conservation
security contracts described in paragraph (2) during the
remaining term of the contracts.
``(4) Regulations.--A contract described in paragraph (2)
may not be administered under the regulations issued to carry
out the conservation stewardship program.''.
(c) Reference to Redesignated Subchapter.--Section
1238A(b)(3)(C) of title XII of the Food Security Act of 1985
(16 U.S.C. 3838a(b)(3)(C)) is amended by striking
``subchapter C'' and inserting ``subchapter D''.
Subtitle E--Farmland Protection and Grassland Reserve
SEC. 2401. FARMLAND PROTECTION PROGRAM.
(a) Definitions.--Section 1238H of the Food Security Act of
1985 (16 U.S.C. 3838h) is amended--
(1) by striking paragraph (1) and inserting the following
new paragraph:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) any agency of any State or local government or an
Indian tribe (including a farmland protection board or land
resource council established under State law); or
``(B) any organization that--
``(i) is organized for, and at all times since the
formation of the organization has been operated principally
for, 1 or more of the conservation purposes specified in
clause (i), (ii), (iii), or (iv) of section 170(h)(4)(A) of
the Internal Revenue Code of 1986;
``(ii) is an organization described in section 501(c)(3) of
that Code that is exempt from taxation under section 501(a)
of that Code; and
``(iii) is--
``(I) described in paragraph (1) or (2) of section 509(a)
of that Code; or
``(II) described in section 509(a)(3), and is controlled by
an organization described in section 509(a)(2), of that
Code.''; and
(2) in paragraph (2)--
(A) in subparagraph (A)--
(i) by striking ``that--'' and inserting ``that is subject
to a pending offer for purchase from an eligible entity and--
''; and
(ii) by striking clauses (i) and (ii) and inserting the
following new clauses:
``(i) has prime, unique, or other productive soil;
``(ii) contains historical or archaeological resources; or
``(iii) the protection of which will further a State or
local policy consistent with the purposes of the program.'';
and
(B) in subparagraph (B)--
(i) in clause (iv), by striking ``and'' at the end; and
(ii) by striking clause (v) and inserting the following new
clauses:
``(v) forest land that--
``(I) contributes to the economic viability of an
agricultural operation; or
``(II) serves as a buffer to protect an agricultural
operation from development; and
``(vi) land that is incidental to land described in clauses
(i) through (v), if such land is necessary for the efficient
administration of a conservation easement, as determined by
the Secretary.''.
(b) Farmland Protection.--Section 1238I of the Food
Security Act of 1985 (16 U.S.C. 3838i) is amended to read as
follows:
``SEC. 1238I. FARMLAND PROTECTION PROGRAM.
``(a) Establishment.--The Secretary shall establish and
carry out a farmland protection program under which the
Secretary shall facilitate and provide funding for the
purchase of conservation easements or other interests in
eligible land.
``(b) Purpose.--The purpose of the program is to protect
the agricultural use and related conservation values of
eligible land by limiting nonagricultural uses of that land.
``(c) Cost-Share Assistance.--
``(1) Provision of assistance.--The Secretary shall provide
cost-share assistance to
[[Page H4506]]
eligible entities for purchasing a conservation easement or
other interest in eligible land.
``(2) Federal share.--The share of the cost provided by the
Secretary for purchasing a conservation easement or other
interest in eligible land shall not exceed 50 percent of the
appraised fair market value of the conservation easement or
other interest in eligible land.
``(3) Non-federal share.--
``(A) Share provided by eligible entity.--The eligible
entity shall provide a share of the cost of purchasing a
conservation easement or other interest in eligible land in
an amount that is not less than 25 percent of the acquisition
purchase price.
``(B) Landowner contribution.--As part of the non-Federal
share of the cost of purchasing a conservation easement or
other interest in eligible land, an eligible entity may
include a charitable donation or qualified conservation
contribution (as defined by section 170(h) of the Internal
Revenue Code of 1986) from the private landowner from which
the conservation easement or other interest in land will be
purchased.
``(d) Determination of Fair Market Value.--Effective on the
date of enactment of the Food, Conservation, and Energy Act
of 2008, the fair market value of the conservation easement
or other interest in eligible land shall be determined on the
basis of an appraisal using an industry approved method,
selected by the eligible entity and approved by the
Secretary.
``(e) Bidding Down Prohibited.--If the Secretary determines
that 2 or more applications for cost-share assistance are
comparable in achieving the purpose of the program, the
Secretary shall not assign a higher priority to any 1 of
those applications solely on the basis of lesser cost to the
program.
``(f) Condition on Assistance.--
``(1) Conservation plan.--Any highly erodible cropland for
which a conservation easement or other interest is purchased
using cost-share assistance provided under the program shall
be subject to a conservation plan that requires, at the
option of the Secretary, the conversion of the cropland to
less intensive uses.
``(2) Contingent right of enforcement.--The Secretary shall
require the inclusion of a contingent right of enforcement
for the Secretary in the terms of a conservation easement or
other interest in eligible land that is purchased using cost-
share assistance provided under the program.
``(g) Agreements With Eligible Entities.--
``(1) In general.--The Secretary shall enter into
agreements with eligible entities to stipulate the terms and
conditions under which the eligible entity is permitted to
use cost-share assistance provided under subsection (c).
``(2) Length of agreements.--An agreement under this
subsection shall be for a term that is--
``(A) in the case of an eligible entity certified under the
process described in subsection (h), a minimum of five years;
and
``(B) for all other eligible entities, at least three, but
not more than five years.
``(3) Substitution of qualified projects.--An agreement
shall allow, upon mutual agreement of the parties,
substitution of qualified projects that are identified at the
time of the proposed substitution.
``(4) Minimum requirements.--An eligible entity shall be
authorized to use its own terms and conditions, as approved
by the Secretary, for conservation easements and other
purchases of interests in land, so long as such terms and
conditions--
``(A) are consistent with the purposes of the program;
``(B) permit effective enforcement of the conservation
purposes of such easements or other interests; and
``(C) include a limit on the impervious surfaces to be
allowed that is consistent with the agricultural activities
to be conducted.
``(5) Effect of violation.--If a violation occurs of a term
or condition of an agreement entered into under this
subsection--
``(A) the agreement shall remain in force; and
``(B) the Secretary may require the eligible entity to
refund all or part of any payments received by the entity
under the program, with interest on the payments as
determined appropriate by the Secretary.
``(h) Certification of Eligible Entities.--
``(1) Certification process.--The Secretary shall establish
a process under which the Secretary may--
``(A) directly certify eligible entities that meet
established criteria;
``(B) enter into long-term agreements with certified
entities, as authorized by subsection (g)(2)(A); and
``(C) accept proposals for cost-share assistance to
certified entities for the purchase of conservation easements
or other interests in eligible land throughout the duration
of such agreements.
``(2) Certification criteria.--In order to be certified, an
eligible entity shall demonstrate to the Secretary that the
entity will maintain, at a minimum, for the duration of the
agreement--
``(A) a plan for administering easements that is consistent
with the purpose of this subchapter;
``(B) the capacity and resources to monitor and enforce
conservation easements or other interests in land; and
``(C) policies and procedures to ensure--
``(i) the long-term integrity of conservation easements or
other interests in eligible land;
``(ii) timely completion of acquisitions of easements or
other interests in eligible land; and
``(iii) timely and complete evaluation and reporting to the
Secretary on the use of funds provided by the Secretary under
the program.
``(3) Review and revision.--
``(A) Review.--The Secretary shall conduct a review of
eligible entities certified under paragraph (1) every three
years to ensure that such entities are meeting the criteria
established under paragraph (2).
``(B) Revocation.--If the Secretary finds that the
certified entity no longer meets the criteria established
under paragraph (2), the Secretary may--
``(i) allow the certified entity a specified period of
time, at a minimum 180 days, in which to take such actions as
may be necessary to meet the criteria; and
``(ii) revoke the certification of the entity, if after the
specified period of time, the certified entity does not meet
the criteria established in paragraph (2).''.
SEC. 2402. FARM VIABILITY PROGRAM.
Section 1238J(b) of the Food Security Act of 1985 (16
U.S.C. 3838j(b)) is amended by striking ``2007'' and
inserting ``2012''.
SEC. 2403. GRASSLAND RESERVE PROGRAM.
Subchapter D of chapter 2 of subtitle D of title XII of the
Food Security Act of 1985 (16 U.S.C. 3838n et seq.), as
redesignated by section 2301(a)(1), is amended to read as
follows:
``Subchapter D--Grassland Reserve Program
``SEC. 1238N. GRASSLAND RESERVE PROGRAM.
``(a) Establishment and Purpose.--The Secretary shall
establish a grassland reserve program (referred to in this
subchapter as the `program') for the purpose of assisting
owners and operators in protecting grazing uses and related
conservation values by restoring and conserving eligible land
through rental contracts, easements, and restoration
agreements.
``(b) Enrollment of Acreage.--
``(1) Acreage enrolled.--The Secretary shall enroll an
additional 1,220,000 acres of eligible land in the program
during fiscal years 2009 through 2012.
``(2) Methods of enrollment.--The Secretary shall enroll
eligible land in the program through the use of;
``(A) a 10-year, 15-year, or 20-year rental contract;
``(B) a permanent easement; or
``(C) in a State that imposes a maximum duration for
easements, an easement for the maximum duration allowed under
the law of that State.
``(3) Limitation.--Of the total amount of funds expended
under the program to acquire rental contracts and easements
described in paragraph (2), the Secretary shall use, to the
extent practicable--
``(A) 40 percent for rental contacts; and
``(B) 60 percent for easements.
``(4) Enrollment of conservation reserve land.--
``(A) Priority.--Upon expiration of a contract under
subchapter B of chapter 1 of this subtitle, the Secretary
shall give priority for enrollment in the program to land
previously enrolled in the conservation reserve program if--
``(i) the land is eligible land, as defined in subsection
(c); and
``(ii) the Secretary determines that the land is of high
ecological value and under significant threat of conversion
to uses other than grazing.
``(B) Maximum enrollment.--The number of acres of land
enrolled under the priority described in subparagraph (A) in
a calendar year shall not exceed 10 percent of the total
number of acres enrolled in the program in that calendar
year.
``(c) Eligible Land Defined.--For purposes of the program,
the term `eligible land' means private or tribal land that--
``(1) is grassland, land that contains forbs, or shrubland
(including improved rangeland and pastureland) for which
grazing is the predominant use;
``(2) is located in an area that has been historically
dominated by grassland, forbs, or shrubland, and the land--
``(A) could provide habitat for animal or plant populations
of significant ecological value if the land--
``(i) is retained in its current use; or
``(ii) is restored to a natural condition;
``(B) contains historical or archaeological resources; or
``(C) would address issues raised by State, regional, and
national conservation priorities; or
``(3) is incidental to land described in paragraph (1) or
(2), if the incidental land is determined by the Secretary to
be necessary for the efficient administration of a rental
contract or easement under the program.
``SEC. 1238O. DUTIES OF OWNERS AND OPERATORS.
``(a) Rental Contracts.--To be eligible to enroll eligible
land in the program under a rental contract, the owner or
operator of the land shall agree--
``(1) to comply with the terms of the contract and, when
applicable, a restoration agreement;
``(2) to suspend any existing cropland base and allotment
history for the land under another program administered by
the Secretary; and
``(3) to implement a grazing management plan, as approved
by the Secretary, which may be modified upon mutual agreement
of the parties.
[[Page H4507]]
``(b) Easements.--To be eligible to enroll eligible land in
the program through an easement, the owner of the land shall
agree--
``(1) to grant an easement to the Secretary or to an
eligible entity described in section 1238Q;
``(2) to create and record an appropriate deed restriction
in accordance with applicable State law to reflect the
easement;
``(3) to provide a written statement of consent to the
easement signed by persons holding a security interest or any
vested interest in the land;
``(4) to provide proof of unencumbered title to the
underlying fee interest in the land that is the subject of
the easement;
``(5) to comply with the terms of the easement and, when
applicable, a restoration agreement;
``(6) to implement a grazing management plan, as approved
by the Secretary, which may be modified upon mutual agreement
of the parties; and
``(7) to eliminate any existing cropland base and allotment
history for the land under another program administered by
the Secretary.
``(c) Restoration Agreements.--
``(1) When applicable.--To be eligible for cost-share
assistance to restore eligible land subject to a rental
contract or an easement under the program, the owner or
operator of the land shall agree to comply with the terms of
a restoration agreement.
``(2) Terms and conditions.--The Secretary shall prescribe
the terms and conditions of a restoration agreement by which
eligible land that is subject to a rental contract or
easement under the program shall be restored.
``(3) Duties.--The restoration agreement shall describe the
respective duties of the owner or operator and the Secretary,
including the Federal share of restoration payments and
technical assistance.
``(d) Terms and Conditions Applicable to Rental Contracts
and Easements.--
``(1) Permissible activities.--The terms and conditions of
a rental contract or easement under the program shall
permit--
``(A) common grazing practices, including maintenance and
necessary cultural practices, on the land in a manner that is
consistent with maintaining the viability of grassland, forb,
and shrub species appropriate to that locality;
``(B) haying, mowing, or harvesting for seed production,
subject to appropriate restrictions during the nesting season
for birds in the local area that are in significant decline
or are conserved in accordance with Federal or State law, as
determined by the State Conservationist;
``(C) fire presuppression, rehabilitation, and construction
of fire breaks; and
``(D) grazing related activities, such as fencing and
livestock watering.
``(2) Prohibitions.--The terms and conditions of a rental
contract or easement under the program shall prohibit--
``(A) the production of crops (other than hay), fruit
trees, vineyards, or any other agricultural commodity that is
inconsistent with maintaining grazing land; and
``(B) except as permitted under a restoration plan, the
conduct of any other activity that would be inconsistent with
maintaining grazing land enrolled in the program.
``(3) Additional terms and conditions.--A rental contract
or easement under the program shall include such additional
provisions as the Secretary determines are appropriate to
carry out or facilitate the purposes and administration of
the program.
``(e) Violations.--On a violation of the terms or
conditions of a rental contract, easement, or restoration
agreement entered into under this section--
``(1) the contract or easement shall remain in force; and
``(2) the Secretary may require the owner or operator to
refund all or part of any payments received under the
program, with interest on the payments as determined
appropriate by the Secretary.
``SEC. 1238P. DUTIES OF SECRETARY.
``(a) Evaluation and Ranking of Applications.--
``(1) Criteria.--The Secretary shall establish criteria to
evaluate and rank applications for rental contracts and
easements under the program .
``(2) Considerations.--In establishing the criteria, the
Secretary shall emphasize support for--
``(A) grazing operations;
``(B) plant and animal biodiversity; and
``(C) grassland, land that contains forbs, and shrubland
under the greatest threat of conversion to uses other than
grazing.
``(b) Payments.--
``(1) In general.--In return for the execution of a rental
contract or the granting of an easement by an owner or
operator under the program, the Secretary shall--
``(A) make rental contract or easement payments to the
owner or operator in accordance with paragraphs (2) and (3);
and
``(B) make payments to the owner or operator under a
restoration agreement for the Federal share of the cost of
restoration in accordance with paragraph (4).
``(2) Rental contract payments.--
``(A) Percentage of grazing value of land.--In return for
the execution of a rental contract by an owner or operator
under the program, the Secretary shall make annual payments
during the term of the contract in an amount, subject to
subparagraph (B), that is not more than 75 percent of the
grazing value of the land covered by the contract.
``(B) Payment limitation.--Payments made under 1 or more
rental contracts to a person or legal entity, directly or
indirectly, may not exceed, in the aggregate, $50,000 per
year.
``(3) Easement payments.--
``(A) In general.--Subject to subparagraph (B), in return
for the granting of an easement by an owner under the
program, the Secretary shall make easement payments in an
amount not to exceed the fair market value of the land less
the grazing value of the land encumbered by the easement.
``(B) Method for determination of compensation.--In making
a determination under subparagraph (A), the Secretary shall
pay as compensation for a easement acquired under the program
the lowest of--
``(i) the fair market value of the land encumbered by the
easement, as determined by the Secretary, using--
``(I) the Uniform Standards of Professional Appraisal
Practices; or
``(II) an area-wide market analysis or survey;
``(ii) the amount corresponding to a geographical cap, as
determined by the Secretary in regulations; or
``(iii) the offer made by the landowner.
``(C) Schedule.--Easement payments may be provided in up to
10 annual payments of equal or unequal amount, as agreed to
by the Secretary and the owner.
``(4) Restoration agreement payments.--
``(A) Federal share of restoration.--The Secretary shall
make payments to an owner or operator under a restoration
agreement of not more than 50 percent of the costs of
carrying out measures and practices necessary to restore
functions and values of that land.
``(B) Payment limitation.--Payments made under 1 or more
restoration agreements to a person or legal entity, directly
or indirectly, may not exceed, in the aggregate, $50,000 per
year.
``(5) Payments to others.--If an owner or operator who is
entitled to a payment under the program dies, becomes
incompetent, is otherwise unable to receive the payment, or
is succeeded by another person who renders or completes the
required performance, the Secretary shall make the payment,
in accordance with regulations promulgated by the Secretary
and without regard to any other provision of law, in such
manner as the Secretary determines is fair and reasonable in
light of all the circumstances.
``SEC. 1238Q. DELEGATION OF DUTY.
``(a) Authority to Delegate.--The Secretary may delegate a
duty under the program--
``(1) by transferring title of ownership to an easement to
an eligible entity to hold and enforce; or
``(2) by entering into a cooperative agreement with an
eligible entity for the eligible entity to own, write, and
enforce an easement.
``(b) Eligible Entity Defined.--In this section, the term
`eligible entity' means--
``(1) an agency of State or local government or an Indian
tribe; or
``(2) an organization that--
``(A) is organized for, and at all times since the
formation of the organization has been operated principally
for, one or more of the conservation purposes specified in
clause (i), (ii), (iii), or (iv) of section 170(h)(4)(A) of
the Internal Revenue Code of 1986;
``(B) is an organization described in section 501(c)(3) of
that Code that is exempt from taxation under section 501(a)
of that Code; and
``(C) is described in--
``(i) paragraph (1) or (2) of section 509(a) of that Code;
or
``(ii) in section 509(a)(3) of that Code, and is controlled
by an organization described in section 509(a)(2) of that
Code.
``(c) Transfer of Title of Ownership.--
``(1) Transfer.--The Secretary may transfer title of
ownership to an easement to an eligible entity to hold and
enforce, in lieu of the Secretary, subject to the right of
the Secretary to conduct periodic inspections and enforce the
easement, if--
``(A) the Secretary determines that the transfer will
promote protection of grassland, land that contains forbs, or
shrubland;
``(B) the owner authorizes the eligible entity to hold or
enforce the easement; and
``(C) the eligible entity agrees to assume the costs
incurred in administering and enforcing the easement,
including the costs of restoration or rehabilitation of the
land as specified by the owner and the eligible entity.
``(2) Application.--An eligible entity that seeks to hold
and enforce an easement shall apply to the Secretary for
approval.
``(3) Approval by secretary.--The Secretary may approve an
application described in paragraph (2) if the eligible
entity--
``(A) has the relevant experience necessary, as appropriate
for the application, to administer an easement on grassland,
land that contains forbs, or shrubland;
``(B) has a charter that describes a commitment to
conserving ranchland, agricultural land, or grassland for
grazing and conservation purposes; and
``(C) has the resources necessary to effectuate the
purposes of the charter.
``(d) Cooperative Agreements.--
``(1) Authorized; terms and conditions.--The Secretary
shall establish the terms and conditions of a cooperative
agreement under which an eligible entity shall use funds
provided by the Secretary to own, write, and enforce an
easement, in lieu of the Secretary.
[[Page H4508]]
``(2) Minimum requirements.--At a minimum, the cooperative
agreement shall--
``(A) specify the qualification of the eligible entity to
carry out the entity's responsibilities under the program,
including acquisition, monitoring, enforcement, and
implementation of management policies and procedures that
ensure the long-term integrity of the easement protections;
``(B) require the eligible entity to assume the costs
incurred in administering and enforcing the easement,
including the costs of restoration or rehabilitation of the
land as specified by the owner and the eligible entity;
``(C) specify the right of the Secretary to conduct
periodic inspections to verify the eligible entity's
enforcement of the easement;
``(D) subject to subparagraph (E), identify a specific
project or a range of projects to be funded under the
agreement;
``(E) allow, upon mutual agreement of the parties,
substitution of qualified projects that are identified at the
time of substitution;
``(F) specify the manner in which the eligible entity will
evaluate and report the use of funds to the Secretary;
``(G) allow the eligible entity flexibility to develop and
use terms and conditions for easements, if the Secretary
finds the terms and conditions consistent with the purposes
of the program and adequate to enable effective enforcement
of the easements;
``(H) if applicable, allow an eligible entity to include a
charitable donation or qualified conservation contribution
(as defined by section 170(h) of the Internal Revenue Code of
1986) from the landowner from which the easement will be
purchased as part of the entity's share of the cost to
purchase an easement; and
``(I) provide for a schedule of payments to an eligible
entity, as agreed to by the Secretary and the eligible
entity.
``(3) Cost sharing.--
``(A) In general.--As part of a cooperative agreement with
an eligible entity under this subsection, the Secretary may
provide a share of the purchase price of an easement under
the program.
``(B) Minimum share by eligible entity.--The eligible
entity shall be required to provide a share of the purchase
price at least equivalent to that provided by the Secretary.
``(C) Priority.--The Secretary may accord a higher priority
to proposals from eligible entities that leverage a greater
share of the purchase price of the easement.
``(4) Violation.--If an eligible entity violates the terms
or conditions of a cooperative agreement entered into under
this subsection--
``(A) the cooperative agreement shall remain in force; and
``(B) the Secretary may require the eligible entity to
refund all or part of any payments received by the eligible
entity under the program, with interest on the payments as
determined appropriate by the Secretary.
``(e) Protection of Federal Investment.--When delegating a
duty under this section, the Secretary shall ensure that the
terms of an easement include a contingent right of
enforcement for the Department.''.
Subtitle F--Environmental Quality Incentives Program
SEC. 2501. PURPOSES OF ENVIRONMENTAL QUALITY INCENTIVES
PROGRAM.
(a) Revised Purposes.--Section 1240 of the Food Security
Act of 1985 (16 U.S.C. 3839aa) is amended--
(1) in the matter preceding paragraph (1), by inserting ``,
forest management,'' after ``agricultural production''; and
(2) by striking paragraphs (3) and (4) and inserting the
following new paragraphs:
``(3) providing flexible assistance to producers to install
and maintain conservation practices that sustain food and
fiber production while--
``(A) enhancing soil, water, and related natural resources,
including grazing land, forestland, wetland, and wildlife;
and
``(B) conserving energy;
``(4) assisting producers to make beneficial, cost
effective changes to production systems (including
conservation practices related to organic production),
grazing management, fuels management, forest management,
nutrient management associated with livestock, pest or
irrigation management, or other practices on agricultural and
forested land; and''.
(b) Technical Correction.--The Food Security Act of 1985 is
amended by inserting immediately before section 1240 (16
U.S.C. 3839aa) the following:
``CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM''.
SEC. 2502. DEFINITIONS.
Section 1240A of the Food Security Act of 1985 (16 U.S.C.
3839aa-1) is amended to read as follows:
``SEC. 1240A. DEFINITIONS.
``In this chapter:
``(1) Eligible land.--
``(A) In general.--The term `eligible land' means land on
which agricultural commodities, livestock, or forest-related
products are produced.
``(B) Inclusions.--The term `eligible land' includes the
following:
``(i) Cropland.
``(ii) Grassland.
``(iii) Rangeland.
``(iv) Pasture land.
``(v) Nonindustrial private forest land.
``(vi) Other agricultural land (including cropped woodland,
marshes, and agricultural land used for the production of
livestock) on which resource concerns related to agricultural
production could be addressed through a contract under the
program, as determined by the Secretary.
``(2) National organic program.--The term `national organic
program' means the national organic program established under
the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et.
seq.).
``(3) Organic system plan.--The term `organic system plan'
means an organic plan approved under the national organic
program.
``(4) Payment.--The term `payment' means financial
assistance provided to a producer for performing practices
under this chapter, including compensation for--
``(A) incurred costs associated with planning, design,
materials, equipment, installation, labor, management,
maintenance, or training; and
``(B) income forgone by the producer.
``(5) Practice.--The term `practice' means 1 or more
improvements and conservation activities that are consistent
with the purposes of the program under this chapter, as
determined by the Secretary, including--
``(A) improvements to eligible land of the producer,
including--
``(i) structural practices;
``(ii) land management practices;
``(iii) vegetative practices;
``(iv) forest management; and
``(v) other practices that the Secretary determines would
further the purposes of the program; and
``(B) conservation activities involving the development of
plans appropriate for the eligible land of the producer,
including--
``(i) comprehensive nutrient management planning; and
``(ii) other plans that the Secretary determines would
further the purposes of the program under this chapter.
``(6) Program.--The term `program' means the environmental
quality incentives program established by this chapter.''.
SEC. 2503. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL
QUALITY INCENTIVES PROGRAM.
Section 1240B of the Food Security Act of 1985 (16 U.S.C.
3839aa-2) is amended to read as follows:
``SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION.
``(a) Establishment.--During each of the 2002 through 2012
fiscal years, the Secretary shall provide payments to
producers that enter into contracts with the Secretary under
the program.
``(b) Practices and Term.--
``(1) Practices.--A contract under the program may apply to
the performance of one or more practices.
``(2) Term.--A contract under the program shall have a term
that--
``(A) at a minimum, is equal to the period beginning on the
date on which the contract is entered into and ending on the
date that is one year after the date on which all practices
under the contract have been implemented; but
``(B) not to exceed 10 years.
``(c) Bidding Down.--If the Secretary determines that the
environmental values of two or more applications for payments
are comparable, the Secretary shall not assign a higher
priority to the application only because it would present the
least cost to the program.
``(d) Payments.--
``(1) Availability of payments.--Payments are provided to a
producer to implement one or more practices under the
program.
``(2) Limitation on payment amounts.--A payment to a
producer for performing a practice may not exceed, as
determined by the Secretary--
``(A) 75 percent of the costs associated with planning,
design, materials, equipment, installation, labor,
management, maintenance, or training;
``(B) 100 percent of income foregone by the producer; or
``(C) in the case of a practice consisting of elements
covered under subparagraphs (A) and (B)--
``(i) 75 percent of the costs incurred for those elements
covered under subparagraph (A); and
``(ii) 100 percent of income foregone for those elements
covered under subparagraph (B).
``(3) Special rule involving payments for foregone
income.--In determining the amount and rate of payments under
paragraph (2)(B), the Secretary may accord great significance
to a practice that, as determined by the Secretary,
promotes--
``(A) residue management;
``(B) nutrient management;
``(C) air quality management;
``(D) invasive species management;
``(E) pollinator habitat;
``(F) animal carcass management technology; or
``(G) pest management.
``(4) Increased payments for certain producers.--
``(A) In general.--Notwithstanding paragraph (2), in the
case of a producer that is a limited resource, socially
disadvantaged farmer or rancher or a beginning farmer or
rancher, the Secretary shall increase the amount that would
otherwise be provided to a producer under this subsection--
``(i) to not more than 90 percent of the costs associated
with planning, design, materials, equipment, installation,
labor, management, maintenance, or training; and
[[Page H4509]]
``(ii) to not less than 25 percent above the otherwise
applicable rate.
``(B) Advance payments.--Not more than 30 percent of the
amount determined under subparagraph (A) may be provided in
advance for the purpose of purchasing materials or
contracting.
``(5) Financial assistance from other sources.--Except as
provided in paragraph (6), any payments received by a
producer from a State or private organization or person for
the implementation of one or more practices on eligible land
of the producer shall be in addition to the payments provided
to the producer under this subsection.
``(6) Other payments.--A producer shall not be eligible for
payments for practices on eligible land under the program if
the producer receives payments or other benefits for the same
practice on the same land under another program under this
subtitle.
``(e) Modification or Termination of Contracts.--
``(1) Voluntary modification or termination.--The Secretary
may modify or terminate a contract entered into with a
producer under the program if--
``(A) the producer agrees to the modification or
termination; and
``(B) the Secretary determines that the modification or
termination is in the public interest.
``(2) Involuntary termination.--The Secretary may terminate
a contract under the program if the Secretary determines that
the producer violated the contract.
``(f) Allocation of Funding.--For each of fiscal years 2002
through 2012, 60 percent of the funds made available for
payments under the program shall be targeted at practices
relating to livestock production.
``(g) Funding for Federally Recognized Native American
Indian Tribes and Alaska Native Corporations.--The Secretary
may enter into alternative funding arrangements with
federally recognized Native American Indian Tribes and Alaska
Native Corporations (including their affiliated membership
organizations) if the Secretary determines that the goals and
objectives of the program will be met by such arrangements,
and that statutory limitations regarding contracts with
individual producers will not be exceeded by any Tribal or
Native Corporation member.
``(h) Water Conservation or Irrigation Efficiency
Practice.--
``(1) Availability of payments.--The Secretary may provide
payments under this subsection to a producer for a water
conservation or irrigation practice.
``(2) Priority.--In providing payments to a producer for a
water conservation or irrigation practice, the Secretary
shall give priority to applications in which--
``(A) consistent with the law of the State in which the
eligible land of the producer is located, there is a
reduction in water use in the operation of the producer; or
``(B) the producer agrees not to use any associated water
savings to bring new land, other than incidental land needed
for efficient operations, under irrigated production, unless
the producer is participating in a watershed-wide project
that will effectively conserve water, as determined by the
Secretary.
``(i) Payments for Conservation Practices Related to
Organic Production.--
``(1) Payments authorized.--The Secretary shall provide
payments under this subsection for conservation practices, on
some or all of the operations of a producer, related--
``(A) to organic production; and
``(B) to the transition to organic production.
``(2) Eligibility requirements.--As a condition for
receiving payments under this subsection, a producer shall
agree--
``(A) to develop and carry out an organic system plan; or
``(B) to develop and implement conservation practices for
certified organic production that are consistent with an
organic system plan and the purposes of this chapter.
``(3) Payment limitations.--Payments under this subsection
to a person or legal entity, directly or indirectly, may not
exceed, in the aggregate, $20,000 per year or $80,000 during
any 6-year period. In applying these limitations, the
Secretary shall not take into account payments received for
technical assistance.
``(4) Exclusion of certain organic certification costs.--
Payments may not be made under this subsection to cover the
costs associated with organic certification that are eligible
for cost-share payments under section 10606 of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 6523).
``(5) Termination of contracts.--The Secretary may cancel
or otherwise nullify a contract to provide payments under
this subsection if the Secretary determines that the
producer--
``(A) is not pursuing organic certification; or
``(B) is not in compliance with the Organic Foods
Production Act of 1990 (7 U.S.C. 6501 et seq).''.
SEC. 2504. EVALUATION OF APPLICATIONS.
Section 1240C of the Food Security Act of 1985 (16 U.S.C.
3839aa-3) is amended to read as follows:
``SEC. 1240C. EVALUATION OF APPLICATIONS.
``(a) Evaluation Criteria.--The Secretary shall develop
criteria for evaluating applications that will ensure that
national, State, and local conservation priorities are
effectively addressed.
``(b) Prioritization of Applications.--In evaluating
applications under this chapter, the Secretary shall
prioritize applications--
``(1) based on their overall level of cost-effectiveness to
ensure that the conservation practices and approaches
proposed are the most efficient means of achieving the
anticipated environmental benefits of the project;
``(2) based on how effectively and comprehensively the
project addresses the designated resource concern or resource
concerns;
``(3) that best fulfill the purpose of the environmental
quality incentives program specified in section 1240(1); and
``(4) that improve conservation practices or systems in
place on the operation at the time the contract offer is
accepted or that will complete a conservation system.
``(c) Grouping of Applications.--To the greatest extent
practicable, the Secretary shall group applications of
similar crop or livestock operations for evaluation purposes
or otherwise evaluate applications relative to other
applications for similar farming operations.''.
SEC. 2505. DUTIES OF PRODUCERS UNDER ENVIRONMENTAL QUALITY
INCENTIVES PROGRAM.
Section 1240D of the Food Security Act of 1985 (16 U.S.C.
3839aa-4) is amended--
(1) in the matter preceding paragraph (1), by striking
``technical assistance, cost-share payments, or incentive'';
(2) in paragraph (2), by striking ``farm or ranch'' and
inserting ``farm, ranch, or forest land''; and
(3) in paragraph (4), by striking ``cost-share payments and
incentive''.
SEC. 2506. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.
(a) Plan of Operations.--Section 1240E(a) of the Food
Security Act of 1985 (16 U.S.C. 3839aa-5(a)) is amended--
(1) in the subsection heading, by striking ``In General''
and inserting ``Plan of Operations'';
(2) in matter preceding paragraph (1), by striking ``cost-
share payments or incentive'';
(3) in paragraph (2), by striking ``and'' after the
semicolon at the end;
(4) in paragraph (3), by striking the period at the end and
inserting ``; and''; and
(5) by adding at the end the following new paragraph:
``(4) in the case of forest land, is consistent with the
provisions of a forest management plan that is approved by
the Secretary, which may include--
``(A) a forest stewardship plan described in section 5 of
the Cooperative Forestry Assistance Act of 1978 (16 U.S.C.
2103a);
``(B) another practice plan approved by the State forester;
or
``(C) another plan determined appropriate by the
Secretary.''.
(b) Avoidance of Duplication.--Subsection (b) of section
1240E of the Food Security Act of 1985 (16 U.S.C. 3839aa-5)
is amended to read as follows:
``(b) Avoidance of Duplication.--The Secretary shall--
``(1) consider a plan developed in order to acquire a
permit under a water or air quality regulatory program as the
equivalent of a plan of operations under subsection (a), if
the plan contains elements equivalent to those elements
required by a plan of operations; and
``(2) to the maximum extent practicable, eliminate
duplication of planning activities under the program under
this chapter and comparable conservation programs.''.
SEC. 2507. DUTIES OF THE SECRETARY.
Section 1240F(1) of the Food Security Act of 1985 (16
U.S.C. 3839aa-6(1)) is amended by striking ``cost-share
payments or incentive''.
SEC. 2508. LIMITATION ON ENVIRONMENTAL QUALITY INCENTIVES
PROGRAM PAYMENTS.
Section 1240G of the Food Security Act of 1985 (16 U.S.C.
3839aa-7) is amended--
(1) by striking ``An individual or entity'' and inserting
``(a) limitation.--Subject to subsection (b), a person or
legal entity'';
(2) by striking ``$450,000'' and inserting ``$300,000'';
(3) by striking ``the individual'' both places it appears
and inserting ``the person''; and
(4) by adding at the end the following new subsection:
``(b) Waiver Authority.--In the case of contracts under
this chapter for projects of special environmental
significance (including projects involving methane
digesters), as determined by the Secretary, the Secretary
may--
``(1) waive the limitation otherwise applicable under
subsection (a); and
``(2) raise the limitation to not more than $450,000 during
any six-year period.''.
SEC. 2509. CONSERVATION INNOVATION GRANTS AND PAYMENTS.
Section 1240H of the Food Security Act of 1985 (16 U.S.C.
3839aa-8) is amended to read as follows:
``SEC. 1240H. CONSERVATION INNOVATION GRANTS AND PAYMENTS.
``(a) Competitive Grants for Innovative Conservation
Approaches.--
``(1) Grants.--Out of the funds made available to carry out
this chapter, the Secretary may pay the cost of competitive
grants that are intended to stimulate innovative approaches
to leveraging the Federal investment in environmental
enhancement and protection, in conjunction with agricultural
production or forest resource management, through the
program.
``(2) Use.--The Secretary may provide grants under this
subsection to governmental and non-governmental organizations
[[Page H4510]]
and persons, on a competitive basis, to carry out projects
that--
``(A) involve producers who are eligible for payments or
technical assistance under the program;
``(B) leverage Federal funds made available to carry out
the program under this chapter with matching funds provided
by State and local governments and private organizations to
promote environmental enhancement and protection in
conjunction with agricultural production;
``(C) ensure efficient and effective transfer of innovative
technologies and approaches demonstrated through projects
that receive funding under this section, such as market
systems for pollution reduction and practices for the storage
of carbon in soil; and
``(D) provide environmental and resource conservation
benefits through increased participation by producers of
specialty crops.
``(b) Air Quality Concerns From Agricultural Operations.--
``(1) Implementation assistance.--The Secretary shall
provide payments under this subsection to producers to
implement practices to address air quality concerns from
agricultural operations and to meet Federal, State, and local
regulatory requirements. The funds shall be made available on
the basis of air quality concerns in a State and shall be
used to provide payments to producers that are cost effective
and reflect innovative technologies.
``(2) Funding.--Of the funds made available to carry out
this chapter, the Secretary shall carry out this subsection
using $37,500,000 for each of fiscal years 2009 through
2012.''.
SEC. 2510. AGRICULTURAL WATER ENHANCEMENT PROGRAM.
Section 1240I of the Food Security Act of 1985 (16 U.S.C.
3839aa-9) is amended to read as follows:
``SEC. 1240I. AGRICULTURAL WATER ENHANCEMENT PROGRAM.
``(a) Definitions.--In this section:
``(1) Agricultural water enhancement activity.--The term
`agricultural water enhancement activity' includes the
following activities carried out with respect to agricultural
land:
``(A) Water quality or water conservation plan development,
including resource condition assessment and modeling.
``(B) Water conservation restoration or enhancement
projects, including conversion to the production of less
water-intensive agricultural commodities or dryland farming.
``(C) Water quality or quantity restoration or enhancement
projects.
``(D) Irrigation system improvement and irrigation
efficiency enhancement.
``(E) Activities designed to mitigate the effects of
drought.
``(F) Related activities that the Secretary determines will
help achieve water quality or water conservation benefits on
agricultural land.
``(2) Partner.--The term `partner' means an entity that
enters into a partnership agreement with the Secretary to
carry out agricultural water enhancement activities on a
regional basis, including--
``(A) an agricultural or silvicultural producer association
or other group of such producers;
``(B) a State or unit of local government; or
``(C) a federally recognized Indian tribe.
``(3) Partnership agreement.--The term `partnership
agreement' means an agreement between the Secretary and a
partner.
``(4) Program.--The term `program' means the agricultural
water enhancement program established under subsection (b).
``(b) Establishment of Program.--Beginning in fiscal year
2009, the Secretary shall carry out, in accordance with this
section and using such procedures as the Secretary determines
to be appropriate, an agricultural water enhancement program
as part of the environmental quality incentives program to
promote ground and surface water conservation and improve
water quality on agricultural lands--
``(1) by entering into contracts with, and making payments
to, producers to carry out agricultural water enhancement
activities; or
``(2) by entering into partnership agreements with
partners, in accordance with subsection (c), on a regional
level to benefit working agricultural land.
``(c) Partnership Agreements.--
``(1) Agreements authorized.--The Secretary may enter into
partnership agreements to meet the objectives of the program
described in subsection (b).
``(2) Applications.--An application to the Secretary to
enter into a partnership agreement under paragraph (1) shall
include the following:
``(A) A description of the geographical area to be covered
by the partnership agreement.
``(B) A description of the agricultural water quality or
water conservation issues to be addressed by the partnership
agreement.
``(C) A description of the agricultural water enhancement
objectives to be achieved through the partnership.
``(D) A description of the partners collaborating to
achieve the project objectives and the roles,
responsibilities, and capabilities of each partner.
``(E) A description of the program resources, including
payments the Secretary is requested to make.
``(F) Such other such elements as the Secretary considers
necessary to adequately evaluate and competitively select
applications for partnership agreements.
``(3) Duties of partners.--A partner under a partnership
agreement shall--
``(A) identify producers participating in the project and
act on their behalf in applying for the program;
``(B) leverage funds provided by the Secretary with
additional funds to help achieve project objectives;
``(C) conduct monitoring and evaluation of project effects;
and
``(D) at the conclusion of the project, report to the
Secretary on project results.
``(d) Agricultural Water Enhancement Activities by
Producers.--The Secretary shall select agricultural water
enhancement activities proposed by producers according to
applicable requirements under the environmental quality
incentives program.
``(e) Agricultural Water Enhancement Activities by
Partners.--
``(1) Competitive process.--The Secretary shall conduct a
competitive process to select partners. In carrying out the
process, the Secretary shall make public the criteria used in
evaluating applications.
``(2) Authority to give priority to certain proposals.--The
Secretary may give a higher priority to proposals from
partners that--
``(A) include high percentages of agricultural land and
producers in a region or other appropriate area;
``(B) result in high levels of applied agricultural water
quality and water conservation activities;
``(C) significantly enhance agricultural activity;
``(D) allow for monitoring and evaluation; and
``(E) assist producers in meeting a regulatory requirement
that reduces the economic scope of the producer's operation.
``(3) Priority to proposals from states with water quantity
concerns.--The Secretary shall give a higher priority to
proposals from partners that--
``(A) include the conversion of agricultural land from
irrigated farming to dryland farming;
``(B) leverage Federal funds provided under the program
with funds provided by partners; and
``(C) assist producers in States with water quantity
concerns, as determined by the Secretary.
``(4) Administration.--In carrying out this subsection, the
Secretary shall--
``(A) accept qualified applications--
``(i) directly from partners applying on behalf of
producers; or
``(ii) from producers applying through a partner as part of
a regional agricultural water enhancement project; and
``(B) ensure that resources made available for regional
agricultural water enhancement activities are delivered in
accordance with applicable program rules.
``(f) Areas Experiencing Exceptional Drought.--
Notwithstanding the purposes described in section 1240, the
Secretary shall consider as an eligible agricultural water
enhancement activity the use of a water impoundment to
capture surface water runoff on agricultural land if the
agricultural water enhancement activity--
``(1) is located in an area that is experiencing or has
experienced exceptional drought conditions during the
previous two calendar years; and
``(2) will capture surface water runoff through the
construction, improvement, or maintenance of irrigation ponds
or small, on-farm reservoirs.
``(g) Waiver Authority.--To assist in the implementation of
agricultural water enhancement activities under the program,
the Secretary shall waive the applicability of the limitation
in section 1001D(b)(2)(B) of this Act for participating
producers if the Secretary determines that the waiver is
necessary to fulfill the objectives of the program.
``(h) Payments Under Program.--
``(1) In general.--The Secretary shall provide appropriate
payments to producers participating in agricultural water
enhancement activities in an amount determined by the
secretary to be necessary to achieve the purposes of the
program described in subsection (b).
``(2) Payments to producers in states with water quantity
concerns.--The Secretary shall provide payments for a period
of five years to producers participating in agricultural
water enhancement activities under proposals described in
subsection (e)(3) in an amount sufficient to encourage
producers to convert from irrigated farming to dryland
farming.
``(i) Consistency With State Law.--Any agricultural water
enhancement activity conducted under the program shall be
conducted in a manner consistent with State water law.
``(j) Funding.--
``(1) Availability of funds.--In addition to funds made
available to carry out this chapter under section 1241(a),
the Secretary shall carry out the program using, of the funds
of the Commodity Credit Corporation--
``(A) $73,000,000 for each of fiscal years 2009 and 2010;
``(B) $74,000,000 for fiscal year 2011; and
``(C) $60,000,000 for fiscal year 2012 and each fiscal year
thereafter.
``(2) Limitation on administrative expenses.--None of the
funds made available for regional agricultural water
conservation activities under the program may be used to
[[Page H4511]]
pay for the administrative expenses of partners.''.
Subtitle G--Other Conservation Programs of the Food Security Act of
1985
SEC. 2601. CONSERVATION OF PRIVATE GRAZING LAND.
Section 1240M(e) of the Food Security Act of 1985 (16
U.S.C. 3839bb(e)) is amended by striking ``2007'' and
inserting ``2012''.
SEC. 2602. WILDLIFE HABITAT INCENTIVE PROGRAM.
(a) Eligibility.--Section 1240N of the Food Security Act of
1985 (16 U.S.C. 3839bb-1) is amended--
(1) in subsection (a), by inserting before the period at
the end the following: ``for the development of wildlife
habitat on private agricultural land, nonindustrial private
forest land, and tribal lands''.
(2) in subsection (b)(1), by striking ``landowners'' and
inserting ``owners of lands referred to in subsection (a)''.
(b) Inclusion of Pivot Corners and Irregular Areas.--
Section 1240N(b)(1)(E) of the Food Security Act of 1985 (16
U.S.C. 3839bb-1(b)(1)(E)) is amended by inserting before the
period at the end the following: ``, including habitat
developed on pivot corners and irregular areas''.
(c) Cost Share for Long-Term Agreements.--Section
1240N(b)(2)(B) of the Food Security Act of 1985 (16 U.S.C.
3839bb-1(b)(2)(B)) is amended by striking ``15 percent'' and
inserting ``25 percent''.
(d) Priority for Certain Conservation Initiatives; Payment
Limitation.--Section 1240N of the Food Security Act of 1985
(16 U.S.C. 3839bb-1) is amended by adding at the end the
following new subsections:
``(d) Priority for Certain Conservation Initiatives.--In
carrying out this section, the Secretary may give priority to
projects that would address issues raised by State, regional,
and national conservation initiatives.
``(e) Payment Limitation.--Payments made to a person or
legal entity, directly or indirectly, under the program may
not exceed, in the aggregate, $50,000 per year.''.
SEC. 2603. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.
Section 1240O(b) of the Food Security Act of 1985 (16
U.S.C. 3839bb-2(b)) is amended by striking ``$5,000,000 for
each of fiscal years 2002 through 2007'' and inserting
``$20,000,000 for each of fiscal years 2008 through 2012''.
SEC. 2604. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND
SEDIMENT CONTROL.
Section 1240P of the Food Security Act of 1985 (16 U.S.C.
3839bb-3) is amended to read as follows:
``SEC. 1240P. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND
SEDIMENT CONTROL.
``(a) Program Authorized.--The Secretary may carry out the
Great Lakes basin program for soil erosion and sediment
control (referred to in this section as the `program'),
including providing assistance to implement the
recommendations of the Great Lakes Regional Collaboration
Strategy to Restore and Protect the Great Lakes.
``(b) Consultation and Cooperation.--The Secretary shall
carry out the program in consultation with the Great Lakes
Commission created by Article IV of the Great Lakes Basin
Compact (82 Stat. 415) and in cooperation with the
Administrator of the Environmental Protection Agency and the
Secretary of the Army.
``(c) Assistance.--In carrying out the program, the
Secretary may--
``(1) provide project demonstration grants, provide
technical assistance, and carry out information and
educational programs to improve water quality in the Great
Lakes basin by reducing soil erosion and improving sediment
control; and
``(2) establish a priority for projects and activities
that--
``(A) directly reduce soil erosion or improve sediment
control;
``(B) reduce soil loss in degraded rural watersheds; or
``(C) improve water quality for downstream watersheds.
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out the program
$5,000,000 for each of fiscal years 2008 through 2012.''.
SEC. 2605. CHESAPEAKE BAY WATERSHED PROGRAM.
Chapter 5 of subtitle D of title XII of the Food Security
Act of 1985 is amended by inserting after section 1240P (16
U.S.C. 3839bb-3) the following new section:
``SEC. 1240Q. CHESAPEAKE BAY WATERSHED.
``(a) Chesapeake Bay Watershed Defined.--In this section,
the term `Chesapeake Bay watershed' means all tributaries,
backwaters, and side channels, including their watersheds,
draining into the Chesapeake Bay.
``(b) Establishment and Purpose.--The Secretary shall
assist producers in implementing conservation activities on
agricultural lands in the Chesapeake Bay watershed for the
purposes of--
``(1) improving water quality and quantity in the
Chesapeake Bay watershed; and
``(2) restoring, enhancing, and preserving soil, air, and
related resources in the Chesapeake Bay watershed.
``(c) Conservation Activities.--The Secretary shall deliver
the funds made available to carry out this section through
applicable programs under this subtitle to assist producers
in enhancing land and water resources--
``(1) by controlling erosion and reducing sediment and
nutrient levels in ground and surface water; and
``(2) by planning, designing, implementing, and evaluating
habitat conservation, restoration, and enhancement measures
where there is significant ecological value if the lands
are--
``(A) retained in their current use; or
``(B) restored to their natural condition.
``(d) Agreements.--
``(1) In general.--The Secretary shall--
``(A) enter into agreements with producers to carry out the
purposes of this section; and
``(B) use the funds made available to carry out this
section to cover the costs of the program involved with each
agreement.
``(2) Special considerations.--In entering into agreements
under this subsection, the Secretary shall give special
consideration to, and begin evaluating, applications with
producers in the following river basins:
``(A) The Susquehanna River.
``(B) The Shenandoah River.
``(C) The Potomac River (including North and South
Potomac).
``(D) The Patuxent River.
``(e) Duties of the Secretary.--In carrying out the
purposes in this section, the Secretary shall--
``(1) where available, use existing plans, models, and
assessments to assist producers in implementing conservation
activities; and
``(2) proceed expeditiously with the implementation of any
agreement with a producer that is consistent with State
strategies for the restoration of the Chesapeake Bay
watershed.
``(f) Consultation.--The Secretary, in consultation with
appropriate Federal agencies, shall ensure conservation
activities carried out under this section complement Federal
and State programs, including programs that address water
quality, in the Chesapeake Bay watershed.
``(g) Sense of Congress Regarding Chesapeake Bay Executive
Council.--It is the sense of Congress that the Secretary
should be a member of the Chesapeake Bay Executive Council,
and is authorized to do so under section 1(3) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590a(3)).
``(h) Funding.--
``(1) Availability.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use, to the maximum extent
practicable--
``(A) $23,000,000 for fiscal year 2009;
``(B) $43,000,000 for fiscal year 2010;
``(C) $72,000,000 for fiscal year 2011; and
``(D) $50,000,000 for fiscal year 2012.
``(2) Duration of availability.--Funds made available under
paragraph (1) shall remain available until expended.''
SEC. 2606. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE
PROGRAM.
Chapter 5 of subtitle D of title XII of the Food Security
Act of 1985 (16 U.S.C. 3839bb et seq.) is amended by
inserting after section 1240Q, as added by section 2605, the
following new section:
``SEC. 1240R. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE
PROGRAM.
``(a) Establishment.--The Secretary shall establish a
voluntary public access program under which States and tribal
governments may apply for grants to encourage owners and
operators of privately-held farm, ranch, and forest land to
voluntarily make that land available for access by the public
for wildlife-dependent recreation, including hunting or
fishing under programs administered by the States and tribal
governments.
``(b) Applications.--In submitting applications for a grant
under the program, a State or tribal government shall
describe--
``(1) the benefits that the State or tribal government
intends to achieve by encouraging public access to private
farm and ranch land for--
``(A) hunting and fishing; and
``(B) to the maximum extent practicable, other recreational
purposes; and
``(2) the methods that will be used to achieve those
benefits.
``(c) Priority.--In approving applications and awarding
grants under the program, the Secretary shall give priority
to States and tribal governments that propose--
``(1) to maximize participation by offering a program the
terms of which are likely to meet with widespread acceptance
among landowners;
``(2) to ensure that land enrolled under the State or
tribal government program has appropriate wildlife habitat;
``(3) to strengthen wildlife habitat improvement efforts on
land enrolled in a special conservation reserve enhancement
program described in section 1234(f)(4) by providing
incentives to increase public hunting and other recreational
access on that land;
``(4) to use additional Federal, State, tribal government,
or private resources in carrying out the program; and
``(5) to make available to the public the location of land
enrolled.
``(d) Relationship to Other Laws.--
``(1) No preemption.--Nothing in this section preempts a
State or tribal government law, including any State or tribal
government liability law.
``(2) Effect of inconsistent opening dates for migratory
bird hunting.--The Secretary shall reduce by 25 percent the
amount of a grant otherwise determined for a State under the
program if the opening dates for migratory bird hunting in
the State are not consistent for residents and non-residents.
``(e) Regulations.--The Secretary shall promulgate such
regulations as are necessary to carry out this section.
``(f) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary
[[Page H4512]]
shall use, to the maximum extent practicable, $50,000,000 for
the period of fiscal years 2009 through 2012.''.
Subtitle H--Funding and Administration of Conservation Programs
SEC. 2701. FUNDING OF CONSERVATION PROGRAMS UNDER FOOD
SECURITY ACT OF 1985.
(a) In General.--Section 1241(a) of the Food Security Act
of 1985 (16 U.S.C. 3841(a)) is amended in the matter
preceding paragraph (1), by striking ``2007'' and inserting
``2012''.
(b) Conservation Reserve Program.--Paragraph (1) of section
1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a))
is amended by striking the period at the end and inserting
the following: ``, including to the maximum extent
practicable--
``(A) $100,000,000 for the period of fiscal years 2009
through 2012 to provide cost share payments under paragraph
(3) of section 1234(b) in connection with thinning activities
conducted on land described in subparagraph (A)(iii) of such
paragraph; and
``(B) $25,000,000 for the period of fiscal years 2009
through 2012 to carry out section 1235(f) to facilitate the
transfer of land subject to contracts from retired or
retiring owners and operators to beginning farmers or
ranchers and socially disadvantaged farmers or ranchers.''.
(c) Conservation Security and Conservation Stewardship
Programs.--Paragraph (3) of section 1241(a) of the Food
Security Act of 1985 (16 U.S.C. 3841(a)) is amended to read
as follows:
``(3)(A) Conservation security program.--The conservation
security program under subchapter A of chapter 2, using such
sums as are necessary to administer contracts entered into
before September 30, 2008.
``(B) Conservation stewardship program.--The conservation
stewardship program under subchapter B of chapter 2.''.
(d) Farmland Protection Program.--Paragraph (4) of section
1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a))
is amended to read as follows:
``(4) The farmland protection program under subchapter C of
chapter 2, using, to the maximum extent practicable--
``(A) $97,000,000 in fiscal year 2008;
``(B) $121,000,000 in fiscal year 2009;
``(C) $150,000,000 in fiscal year 2010;
``(D) $175,000,000 in fiscal year 2011; and
``(E) $200,000,000 in fiscal year 2012.''.
(e) Grassland Reserve Program.--Paragraph (5) of section
1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a))
is amended to read as follows:
``(5) The grassland reserve program under subchapter D of
chapter 2.''.
(f) Environmental Quality Incentives Program.--Paragraph
(6) of section 1241(a) of the Food Security Act of 1985 (16
U.S.C. 3841(a)) is amended to read as follows:
``(6) The environmental quality incentives program under
chapter 4, using, to the maximum extent practicable--
``(A) $1,200,000,000 in fiscal year 2008;
``(B) $1,337,000,000 in fiscal year 2009;
``(C) $1,450,000,000 in fiscal year 2010;
``(D) $1,588,000,000 in fiscal year 2011; and
``(E) $1,750,000,000 in fiscal year 2012.''.
(g) Wildlife Habitat Incentives Program.--Paragraph (7)(D)
of section 1241(a) of the Food Security Act of 1985 (16
U.S.C. 3841(a)) is amended by striking ``2007'' and inserting
``2012''.
SEC. 2702. AUTHORITY TO ACCEPT CONTRIBUTIONS TO SUPPORT
CONSERVATION PROGRAMS.
Section 1241 of the Food Security Act of 1985 (16 U.S.C.
3841) is amended by adding at the end the following new
subsection:
``(e) Acceptance and Use of Contributions.--
``(1) Authority to establish contribution accounts.--
Subject to paragraph (2), the Secretary may establish a sub-
account for each conservation program administered by the
Secretary under subtitle D to accept contributions of non-
Federal funds to support the purposes of the program.
``(2) Deposit and use of contributions.--Contributions of
non-Federal funds received for a conservation program
administered by the Secretary under subtitle D shall be
deposited into the sub-account established under this
subsection for the program and shall be available to the
Secretary, without further appropriation and until expended,
to carry out the program.''.
SEC. 2703. REGIONAL EQUITY AND FLEXIBILITY.
(a) Regional Equity and Flexibility.--Section 1241(d) of
the Food Security Act of 1985 (16 U.S.C. 3841(d)) is
amended--
(1) by striking ``Before April 1'' and inserting the
following:
``(1) Priority funding to promote equity.--Before April
1'';
(2) by striking ``$12,000,000'' and inserting
``$15,000,000''; and
(3) by adding at the end the following new paragraph:
``(2) Specific funding allocations.--In determining the
specific funding allocations for States under paragraph (1),
the Secretary shall consider the respective demand in each
State for each program covered by such paragraph.''.
(b) Allocations Review and Update.--Section 1241 of the
Food Security Act of 1985 (16 U.S.C. 3841) is amended by
inserting after subsection (e), as added by section 2702, the
following new subsection:
``(f) Allocations Review and Update.--
``(1) Review.--Not later than January 1, 2012, the
Secretary shall conduct a review of conservation programs and
authorities under this title that utilize allocation formulas
to determine the sufficiency of the formulas in accounting
for State-level economic factors, level of agricultural
infrastructure, or related factors that affect conservation
program costs.
``(2) Update.--The Secretary shall improve conservation
program allocation formulas as necessary to ensure that the
formulas adequately reflect the costs of carrying out the
conservation programs.''.
SEC. 2704. ASSISTANCE TO CERTAIN FARMERS AND RANCHERS TO
IMPROVE THEIR ACCESS TO CONSERVATION PROGRAMS.
Section 1241 of the Food Security Act of 1985 (16 U.S.C.
3841) is amended by inserting after subsection (f), as added
by section 2703(b), the following new subsection:
``(g) Assistance to Certain Farmers or Ranchers for
Conservation Access.--
``(1) Assistance.--Of the funds made available for each of
fiscal years 2009 through 2012 to carry out the environmental
quality incentives program and the acres made available for
each of such fiscal years to carry out the conservation
stewardship program, the Secretary shall use, to the maximum
extent practicable--
``(A) 5 percent to assist beginning farmers or ranchers;
and
``(B) 5 percent to assist socially disadvantaged farmers or
ranchers.
``(2) Repooling of funds.--In any fiscal year, amounts not
obligated under paragraph (1) by a date determined by the
Secretary shall be available for payments and technical
assistance to all persons eligible for payments or technical
assistance in that fiscal year under the environmental
quality incentives program.
``(3) Repooling of acres.--In any fiscal year, acres not
obligated under paragraph (1) by a date determined by the
Secretary shall be available for use in that fiscal year
under the conservation stewardship program.''.
SEC. 2705. REPORT REGARDING ENROLLMENTS AND ASSISTANCE UNDER
CONSERVATION PROGRAMS.
Section 1241 of the Food Security Act of 1985 (16 U.S.C.
3841) is amended by inserting after subsection (g), as added
by section 2704, the following new subsection:
``(h) Report on Program Enrollments and Assistance.--
Beginning in calendar year 2009, and each year thereafter,
the Secretary shall submit to the Committee on Agriculture of
the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a
semiannual report containing statistics by State related to
enrollments in conservation programs under this subtitle, as
follows:
``(1) Payments made under the wetlands reserve program for
easements valued at $250,000 or greater.
``(2) Payments made under the farmland protection program
for easements in which the Federal share is $250,000 or
greater.
``(3) Payments made under the grassland reserve program
valued at $250,000 or greater.
``(4) Payments made under the environmental quality
incentives program for land determined to have special
environmental significance pursuant to section 1240G(b).
``(5) Payments made under the agricultural water
enhancement program subject to the waiver of adjusted gross
income limitations pursuant to section 1240I(g).
``(6) Waivers granted by the Secretary under section
1001D(b)(2) of this Act in order to protect environmentally
sensitive land of special significance.''.
SEC. 2706. DELIVERY OF CONSERVATION TECHNICAL ASSISTANCE.
Section 1242 of the Food Security Act of 1985 (16 U.S.C.
3842) is amended to read as follows:
``SEC. 1242. DELIVERY OF TECHNICAL ASSISTANCE.
``(a) Definition of Eligible Participant.--In this section,
the term `eligible participant' means a producer, landowner,
or entity that is participating in, or seeking to participate
in, programs for which the producer, landowner, or entity is
otherwise eligible to participate in under this title or the
agricultural management assistance program under section 524
of the Federal Crop Insurance Act (7 U.S.C. 1524).
``(b) Purpose of Technical Assistance.--The purpose of
technical assistance authorized by this section is to provide
eligible participants with consistent, science-based, site-
specific practices designed to achieve conservation
objectives on land active in agricultural, forestry, or
related uses.
``(c) Provision of Technical Assistance.--The Secretary
shall provide technical assistance under this title to an
eligible participant--
``(1) directly;
``(2) through an agreement with a third-party provider; or
``(3) at the option of the eligible participant, through a
payment, as determined by the Secretary, to the eligible
participant for an approved third-party provider, if
available.
``(d) Non-Federal Assistance.--The Secretary may request
the services of, and enter into cooperative agreements or
contracts with, other agencies within the Department or non-
Federal entities to assist the Secretary in providing
technical assistance necessary to assist in implementing
conservation programs under this title.
``(e) Certification of Third-Party Providers.--
``(1) Purpose.--The purpose of the third-party provider
program is to increase the
[[Page H4513]]
availability and range of technical expertise available to
eligible participants to plan and implement conservation
measures.
``(2) Regulations.--Not later than 180 days after the date
of the enactment of the Food, Conservation, and Energy Act of
2008, the Secretary shall promulgate such regulations as are
necessary to carry out this section.
``(3) Expertise.--In promulgating such regulations, the
Secretary, to the maximum extent practicable, shall--
``(A) ensure that persons with expertise in the technical
aspects of conservation planning, watershed planning, and
environmental engineering, including commercial entities,
nonprofit entities, State or local governments or agencies,
and other Federal agencies, are eligible to become approved
providers of the technical assistance;
``(B) provide national criteria for the certification of
third party providers; and
``(C) approve any unique certification standards
established at the State level.
``(f) Administration.--
``(1) Funding.--Effective for fiscal year 2008 and each
subsequent fiscal year, funds of the Commodity Credit
Corporation made available to carry out technical assistance
for each of the programs specified in section 1241 shall be
available for the provision of technical assistance from
third-party providers under this section.
``(2) Term of agreement.--An agreement with a third-party
provider under this section shall have a term that--
``(A) at a minimum, is equal to the period beginning on the
date on which the agreement is entered into and ending on the
date that is 1 year after the date on which all activities
performed pursuant to the agreement have been completed;
``(B) does not exceed 3 years; and
``(C) can be renewed, as determined by the Secretary.
``(3) Review of certification requirements.--Not later than
1 year after the date of enactment of the Food, Conservation,
and Energy Act of 2008, the Secretary shall--
``(A) review certification requirements for third-party
providers; and
``(B) make any adjustments considered necessary by the
Secretary to improve participation.
``(4) Eligible activities.--
``(A) Inclusion of activities.--The Secretary may include
as activities eligible for payments to a third party
provider--
``(i) technical services provided directly to eligible
participants, such as conservation planning, education and
outreach, and assistance with design and implementation of
conservation practices; and
``(ii) related technical assistance services that
accelerate conservation program delivery.
``(B) Exclusions.--The Secretary shall not designate as an
activity eligible for payments to a third party provider any
service that is provided by a business, or equivalent, in
connection with conducting business and that is customarily
provided at no cost.
``(5) Payment amounts.--The Secretary shall establish fair
and reasonable amounts of payments for technical services
provided by third-party providers.
``(g) Availability of Technical Services.--
``(1) In general.--In carrying out the programs under this
title and the agricultural management assistance program
under section 524 of the Federal Crop Insurance Act (7 U.S.C.
1524), the Secretary shall make technical services available
to all eligible participants who are installing an eligible
practice.
``(2) Technical service contracts.--In any case in which
financial assistance is not provided under a program referred
to in paragraph (1), the Secretary may enter into a technical
service contract with the eligible participant for the
purposes of assisting in the planning, design, or
installation of an eligible practice.
``(h) Review of Conservation Practice Standards.--
``(1) Review required.--The Secretary shall--
``(A) review conservation practice standards, including
engineering design specifications, in effect on the date of
the enactment of the Food, Conservation, and Energy Act of
2008;
``(B) ensure, to the maximum extent practicable, the
completeness and relevance of the standards to local
agricultural, forestry, and natural resource needs, including
specialty crops, native and managed pollinators, bioenergy
crop production, forestry, and such other needs as are
determined by the Secretary; and
``(C) ensure that the standards provide for the optimal
balance between meeting site-specific conservation needs and
minimizing risks of design failure and associated costs of
construction and installation.
``(2) Consultation.--In conducting the review under
paragraph (1), the Secretary shall consult with eligible
participants, crop consultants, cooperative extension and
land grant universities, nongovernmental organizations, and
other qualified entities.
``(3) Expedited revision of standards.--If the Secretary
determines under paragraph (1) that revisions to the
conservation practice standards, including engineering design
specifications, are necessary, the Secretary shall establish
an administrative process for expediting the revisions.
``(i) Addressing Concerns of Speciality Crop, Organic, and
Precision Agriculture Producers.--
``(1) In general.--The Secretary shall--
``(A) to the maximum extent practicable, fully incorporate
specialty crop production, organic crop production, and
precision agriculture into the conservation practice
standards; and
``(B) provide for the appropriate range of conservation
practices and resource mitigation measures available to
producers involved with organic or specialty crop production
or precision agriculture.
``(2) Availability of adequate technical assistance.--
``(A) In general.--The Secretary shall ensure that adequate
technical assistance is available for the implementation of
conservation practices by producers involved with organic,
specialty crop production, or precision agriculture through
Federal conservation programs.
``(B) Requirements.--In carrying out subparagraph (A), the
Secretary shall develop--
``(i) programs that meet specific needs of producers
involved with organic, specialty crop production or precision
agriculture through cooperative agreements with other
agencies and nongovernmental organizations; and
``(ii) program specifications that allow for innovative
approaches to engage local resources in providing technical
assistance for planning and implementation of conservation
practices.''.
SEC. 2707. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.
(a) Transfer of Existing Provisions.--Subsections (a), (c),
and (d) of section 1243 of the Food Security Act of 1985 (16
U.S.C. 3843) are--
(1) redesignated as subsections (c), (d), and (e),
respectively; and
(2) transferred to appear at the end of section 1244 of
such Act (16 U.S.C. 3844).
(b) Establishment of Partnership Initiative.--Section 1243
of the Food Security Act of 1985 (16 U.S.C. 3843), as amended
by subsection (a), is amended to read as follows:
``SEC. 1243. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.
``(a) Establishment of Initiative.--The Secretary shall
establish a cooperative conservation partnership initiative
(in this section referred to as the `Initiative') to work
with eligible partners to provide assistance to producers
enrolled in a program described in subsection (c)(1) that
will enhance conservation outcomes on agricultural and
nonindustrial private forest land.
``(b) Purposes.--The purposes of a partnership entered into
under the Initiative shall be--
``(1) to address conservation priorities involving
agriculture and nonindustrial private forest land on a local,
State, multi-State, or regional level;
``(2) to encourage producers to cooperate in meeting
applicable Federal, State, and local regulatory requirements
related to production involving agriculture and nonindustrial
private forest land;
``(3) to encourage producers to cooperate in the
installation and maintenance of conservation practices that
affect multiple agricultural or nonindustrial private forest
operations; or
``(4) to promote the development and demonstration of
innovative conservation practices and delivery methods,
including those for specialty crop and organic production and
precision agriculture producers.
``(c) Initiative Programs.--
``(1) Covered programs.--Except as provided in paragraph
(2), the Initiative applies to all conservation programs
under subtitle D.
``(2) Excluded programs.--The Initiative shall not include
the following programs:
``(A) Conservation reserve program.
``(B) Wetlands reserve program.
``(C) Farmland protection program
``(D) Grassland reserve program.
``(d) Eligible Partners.--The Secretary may enter into a
partnership under the Initiative with one or more of the
following:
``(1) States and local governments.
``(2) Indian tribes.
``(3) Producer associations.
``(4) Farmer cooperatives.
``(5) Institutions of higher education.
``(6) Nongovernmental organizations with a history of
working cooperatively with producers to effectively address
conservation priorities related to agricultural production
and nonindustrial private forest land.
``(e) Implementation Agreements.--The Secretary shall carry
out the Initiative--
``(1) by selecting, through a competitive process, eligible
partners from among applications submitted under subsection
(f); and
``(2) by entering into multi-year agreements with eligible
partners so selected for a period not to exceed 5 years.
``(f) Applications.--
``(1) Required information.--An application to enter into a
partnership agreement under the Initiative shall include the
following:
``(A) A description of the area covered by the agreement,
conservation priorities in the area, conservation objectives
to be achieved, and the expected level of participation by
agricultural producers and nonindustrial private forest
landowners.
``(B) A description of the partner, or partners,
collaborating to achieve the objectives of the agreement, and
the roles, responsibilities, and capabilities of the partner.
``(C) A description of the resources that are requested
from the Secretary, and the non-Federal resources that will
be leveraged by the Federal contribution.
``(D) A description of the plan for monitoring, evaluating,
and reporting on progress
[[Page H4514]]
made towards achieving the objectives of the agreement.
``(E) Such other information that may be required by the
Secretary.
``(2) Priorities.--The Secretary shall give priority to
applications for agreements that--
``(A) have a high percentage of producers involved and
working agricultural or nonindustrial private forest land
included in the area covered by the agreement;
``(B) significantly leverage non-Federal financial and
technical resources and coordinate with other local, State,
or Federal efforts;
``(C) deliver high percentages of applied conservation to
address water quality, water conservation, or State,
regional, or national conservation initiatives;
``(D) provide innovation in conservation methods and
delivery, including outcome-based performance measures and
methods; or
``(E) meet other factors, as determined by the Secretary.
``(g) Relationship to Covered Programs.--
``(1) Compliance with program rules.--Except as provided in
paragraph (2), the Secretary shall ensure that resources made
available under the Initiative are delivered in accordance
with the applicable rules of programs specified in subsection
(c)(1) through normal program mechanisms relating to program
functions, including rules governing appeals, payment
limitations, and conservation compliance.
``(2) Adjustment.--The Secretary may adjust the elements of
any program specified in subsection (c)(1)--
``(A) to better reflect unique local circumstances and
purposes if the Secretary determines such adjustments are
necessary to achieve the purposes of the Initiative; and
``(B) to provide preferential enrollment to producers who
are eligible for the applicable program and to participate in
the Initiative.
``(h) Technical and Financial Assistance.--The Secretary
shall provide appropriate technical and financial assistance
to producers participating in the Initiative in an amount
determined to be necessary to achieve the purposes of the
Initiative.
``(i) Funding.--
``(1) Reservation.--Of the funds and acres made available
for each of fiscal years 2009 through 2012 to implement the
programs described in subsection (c)(1), the Secretary shall
reserve 6 percent of the funds and acres to ensure an
adequate source of funds and acres for the Initiative.
``(2) Allocation requirements.--Of the funds and acres
reserved for the Initiative for a fiscal year, the Secretary
shall allocate--
``(A) 90 percent of the funds and acres to projects based
on the direction of State conservationists, with the advice
of State technical committees; and
``(B) 10 percent of the funds and acres to projects based
on a national competitive process established by the
Secretary.
``(3) Unused funding.--Any funds and acres reserved for a
fiscal year under paragraph (1) that are not obligated by
April 1 of that fiscal year may be used to carry out other
activities under the program that is the source of the funds
or acres during the remainder of that fiscal year.
``(4) Administrative costs of partners.--Overhead or
administrative costs of partners may not be covered by funds
provided through the Initiative.''.
SEC. 2708. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION
PROGRAMS.
Section 1244 of the Food Security Act of 1985 (16 U.S.C.
3844), as amended by section 2707, is further amended--
(1) by striking subsection (a) and inserting the following
new subsection:
``(a) Incentives for Certain Farmers and Ranchers and
Indian Tribes.--
``(1) Incentives authorized.--In carrying out any
conservation program administered by the Secretary, the
Secretary may provide to a person or entity specified in
paragraph (2) incentives to participate in the conservation
program--
``(A) to foster new farming and ranching opportunities; and
``(B) to enhance long-term environmental goals.
``(2) Covered persons.--Incentives authorized by paragraph
(1) may be provided to the following:
``(A) Beginning farmers or ranchers.
``(B) Socially disadvantaged farmers or ranchers.
``(C) Limited resource farmers or ranchers.
``(D) Indian tribes.''; and
(2) by adding at the end the following new subsections:
``(f) Acreage Limitations.--
``(1) Limitations.--
``(A) Enrollments.--The Secretary shall not enroll more
than 25 percent of the cropland in any county in the programs
administered under subchapters B and C of chapter 1 of
subtitle D.
``(B) Easements.--Not more than 10 percent of the cropland
in a country may be subject to an easement acquired under
subchapter C of chapter 1 of subtitle D.
``(2) Exceptions.--The Secretary may exceed the limitation
in paragraph (1)(A), if the Secretary determines that--
``(A) the action would not adversely affect the local
economy of a county; and
``(B) operators in the county are having difficulties
complying with conservation plans implemented under section
1212.
``(3) Waiver to exclude certain acreage.--The Secretary may
grant a waiver to exclude acreage enrolled under subsection
(c)(2)(B) or (f)(4) of section 1234 from the limitations in
paragraph (1)(A) with the concurrence of the county
government of the county involved.
``(4) Shelterbelts and windbreaks.--The limitations
established under paragraph (1) shall not apply to cropland
that is subject to an easement under subchapter C of chapter
1 that is used for the establishment of shelterbelts and
windbreaks.
``(g) Compliance and Performance.--For each conservation
program under subtitle D, the Secretary shall develop
procedures--
``(1) to monitor compliance with program requirements;
``(2) to measure program performance;
``(3) to demonstrate whether the long-term conservation
benefits of the program are being achieved;
``(4) to track participation by crop and livestock types;
and
``(5) to coordinate activities described in this subsection
with the national conservation program authorized under
section 5 of the Soil and Water Resources Conservation Act of
1977 (16 U.S.C. 2004).
``(h) Encouragement of Pollinator Habitat Development and
Protection.--In carrying out any conservation program
administered by the Secretary, the Secretary may, as
appropriate, encourage--
``(1) the development of habitat for native and managed
pollinators; and
``(2) the use of conservation practices that benefit native
and managed pollinators.
``(i) Streamlined Application Process.--
``(1) In general.--In carrying out each conservation
program under this title, the Secretary shall ensure that the
application process used by producers and landowners is
streamlined to minimize complexity and eliminate redundancy.
``(2) Review and streamlining.--
``(A) Review.--The Secretary shall carry out a review of
the application forms and processes for each conservation
program covered by this subsection.
``(B) Streamlining.--On completion of the review the
Secretary shall revise application forms and processes, as
necessary, to ensure that--
``(i) all required application information is essential for
the efficient, effective, and accountable implementation of
conservation programs;
``(ii) conservation program applicants are not required to
provide information that is readily available to the
Secretary through existing information systems of the
Department of Agriculture;
``(iii) information provided by the applicant is managed
and delivered efficiently for use in all stages of the
application process, or for multiple applications; and
``(iv) information technology is used effectively to
minimize data and information input requirements.
``(3) Implementation and notification.--Not later than 1
year after the date of enactment of the Food, Conservation,
and Energy Act of 2008, the Secretary shall submit to
Congress a written notification of completion of the
requirements of this subsection.''.
SEC. 2709. ENVIRONMENTAL SERVICES MARKETS.
Subtitle E of title XII of the Food Security Act of 1985 is
amended by inserting after section 1244 (16 U.S.C. 3844) the
following new section:
``SEC. 1245. ENVIRONMENTAL SERVICES MARKETS.
``(a) Technical Guidelines Required.--The Secretary shall
establish technical guidelines that outline science-based
methods to measure the environmental services benefits from
conservation and land management activities in order to
facilitate the participation of farmers, ranchers, and forest
landowners in emerging environmental services markets. The
Secretary shall give priority to the establishment of
guidelines related to farmer, rancher, and forest landowner
participation in carbon markets.
``(b) Establishment.--The Secretary shall establish
guidelines under subsection (a) for use in developing the
following:
``(1) A procedure to measure environmental services
benefits.
``(2) A protocol to report environmental services benefits.
``(3) A registry to collect, record and maintain the
benefits measured.
``(c) Verification Requirements.--
``(1) Verification of reports.--The Secretary shall
establish guidelines for a process to verify that a farmer,
rancher, or forest landowner who reports an environmental
services benefit pursuant to the protocol required by
paragraph (2) of subsection (b) for inclusion in the registry
required by paragraph (3) of such subsection has implemented
the conservation or land management activity covered by the
report.
``(2) Role of third parties.--In establishing the
verification guidelines required by paragraph (1), the
Secretary shall consider the role of third-parties in
conducting independent verification of benefits produced for
environmental services markets and other functions, as
determined by the Secretary.
``(d) Use of Existing Information.--In carrying out
subsection (b), the Secretary shall build on activities or
information in existence on the date of the enactment of the
Food, Conservation, and Energy Act of 2008 regarding
environmental services markets.
``(e) Consultation.--In carrying out this section, the
Secretary shall consult with the following:
[[Page H4515]]
``(1) Federal and State government agencies.
``(2) Nongovernmental interests including--
``(A) farm, ranch, and forestry producers;
``(B) financial institutions involved in environmental
services trading;
``(C) institutions of higher education with relevant
expertise or experience;
``(D) nongovernmental organizations with relevant expertise
or experience; and
``(E) private sector representatives with relevant
expertise or experience.
``(3) Other interested persons, as determined by the
Secretary.''.
SEC. 2710. AGRICULTURE CONSERVATION EXPERIENCED SERVICES
PROGRAM.
Subtitle F of title XII of the Food Security Act of 1985 is
amended by inserting after section 1251 (16 U.S.C. 2005a) the
following new section:
``SEC. 1252. AGRICULTURE CONSERVATION EXPERIENCED SERVICES
PROGRAM.
``(a) Establishment and Purpose.--The Secretary shall
establish a conservation experienced services program (in
this section referred to as the `ACES Program') for the
purpose of utilizing the talents of individuals who are age
55 or older, but who are not employees of the Department of
Agriculture or a State agriculture department, to provide
technical services in support of the conservation-related
programs and authorities carried out by the Secretary. Such
technical services may include conservation planning
assistance, technical consultation, and assistance with
design and implementation of conservation practices.
``(b) Program Agreements.--
``(1) Relation to older american community service
employment program.--Notwithstanding any other provision of
law relating to Federal grants, cooperative agreements, or
contracts, to carry out the ACES program during a fiscal
year, the Secretary may enter into agreements with nonprofit
private agencies and organizations eligible to receive grants
for that fiscal year under the Community Service Senior
Opportunities Act (42 U.S.C. 3056 et seq.) to secure
participants for the ACES program who will provide technical
services under the ACES program.
``(2) Required determination.--Before entering into an
agreement under paragraph (1), the Secretary shall ensure
that the agreement would not--
``(A) result in the displacement of individuals employed by
the Department, including partial displacement through
reduction of non-overtime hours, wages, or employment
benefits;
``(B) result in the use of an individual under the ACES
program for a job or function in a case in which a Federal
employee is in a layoff status from the same or a
substantially-equivalent job or function with the Department;
or
``(C) affect existing contracts for services.
``(c) Funding Source.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary may carry out the ACES program using funds made
available to carry out each program under this title.
``(2) Exclusions.--Funds made available to carry out the
following programs may not be used to carry out the ACES
program:
``(A) The conservation reserve program.
``(B) The wetlands reserve program.
``(C) The grassland reserve program.
``(D) The conservation stewardship program.
``(d) Liability.--An individual providing technical
services under the ACES program is deemed to be an employee
of the United States Government for purposes of chapter 171
of title 28, United States Code, if the individual--
``(1) is providing technical services pursuant to an
agreement entered into under subsection (b); and
``(2) is acting within the scope of the agreement.''.
SEC. 2711. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES AND
THEIR RESPONSIBILITIES.
Subtitle G of title XII of the Farm Security Act of 1985
(16 U.S.C. 3861, 3862) is amended to read as follows:
``Subtitle G--State Technical Committees
``SEC. 1261. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES.
``(a) Establishment.--The Secretary shall establish a
technical committee in each State to assist the Secretary in
the considerations relating to implementation and technical
aspects of the conservation programs under this title.
``(b) Standards.--Not later than 180 days after the date of
enactment of the Food, Conservation, and Energy Act of 2008,
the Secretary shall develop--
``(1) standard operating procedures to standardize the
operations of State technical committees; and
``(2) standards to be used by State technical committees in
the development of technical guidelines under section 1262(b)
for the implementation of the conservation provisions of this
title.
``(c) Composition.--Each State technical committee shall be
composed of agricultural producers and other professionals
that represent a variety of disciplines in the soil, water,
wetland, and wildlife sciences. The technical committee for a
State shall include representatives from among the following:
``(1) The Natural Resources Conservation Service.
``(2) The Farm Service Agency.
``(3) The Forest Service.
``(4) The National Institute of Food and Agriculture.
``(5) The State fish and wildlife agency.
``(6) The State forester or equivalent State official.
``(7) The State water resources agency.
``(8) The State department of agriculture.
``(9) The State association of soil and water conservation
districts.
``(10) Agricultural producers representing the variety of
crops and livestock or poultry raised within the State.
``(11) Owners of nonindustrial private forest land.
``(12) Nonprofit organizations within the meaning of
section 501(c)(3) of the Internal Revenue Code of 1986 with
demonstrable conservation expertise and experience working
with agriculture producers in the State.
``(13) Agribusiness.
``SEC. 1262. RESPONSIBILITIES.
``(a) In General.--Each State technical committee
established under section 1261 shall meet regularly to
provide information, analysis, and recommendations to
appropriate officials of the Department of Agriculture who
are charged with implementing the conservation provisions of
this title.
``(b) Public Notice and Attendance.--Each State technical
committee shall provide public notice of, and permit public
attendance at, meetings considering issues of concern related
to carrying out this title.
``(c) Role.--
``(1) In general.--The role of State technical committees
is advisory in nature, and such committees shall have no
implementation or enforcement authority. However, the
Secretary shall give strong consideration to the
recommendations of such committees in administering the
programs under this title.
``(2) Advisory role in establishing program priorities and
criteria.--Each State technical committee shall advise the
Secretary in establishing priorities and criteria for the
programs in this title, including the review of whether local
working groups are addressing those priorities.
``(d) FACA Requirements.--
``(1) Exemption.--Each State technical committee shall be
exempt from the Federal Advisory Committee Act (5 U.S.C.
App.).
``(2) Local working groups.--For purposes of the Federal
Advisory Committee Act (5 U.S.C. App.), any local working
group established under this subtitle shall be considered to
be a subcommittee of the applicable State technical
committee.''.
Subtitle I--Conservation Programs Under Other Laws
SEC. 2801. AGRICULTURAL MANAGEMENT ASSISTANCE PROGRAM.
(a) Eligible States.--Section 524(b)(1) of the Federal Crop
Insurance Act (7 U.S.C. 1524(b)(1)) is amended by inserting
``Hawaii,'' after ``Delaware,''.
(b) Funding.--Section 524(b)(4)(B) of the Federal Crop
Insurance Act (7 U.S.C. 1524(b)(4)(B)) is amended--
(1) in clause (i), by striking ``Except as provided in
clauses (ii) and (iii)'' and inserting ``Except as provided
in clause (ii)''; and
(2) by striking clauses (ii) and (iii) and inserting the
following new clause:
``(ii) Exception for fiscal years 2008 through 2012.--For
each of fiscal years 2008 through 2012, the Commodity Credit
Corporation shall make available to carry out this subsection
$15,000,000.''.
(c) Certain Uses.--Section 524(b)(4) of the Federal Crop
Insurance Act (7 U.S.C. 1524(b)(4)) is amended by adding at
the end the following new subparagraph:
``(C) Certain uses.--Of the amounts made available to carry
out this subsection for a fiscal year, the Commodity Credit
Corporation shall use not less than--
``(i) 50 percent to carry out subparagraphs (A), (B), and
(C) of paragraph (2) through the Natural Resources
Conservation Service;
``(ii) 10 percent to provide organic certification cost
share assistance through the Agricultural Marketing Service;
and
``(iii) 40 percent to conduct activities to carry out
subparagraph (F) of paragraph (2) through the Risk Management
Agency.''.
SEC. 2802. TECHNICAL ASSISTANCE UNDER SOIL CONSERVATION AND
DOMESTIC ALLOTMENT ACT.
(a) Prevention of Soil Erosion.--
(1) In general.--The first section of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590a) is amended--
(A) by striking ``That it'' and inserting the following:
``SECTION 1. PURPOSE.
``It''; and
(B) in the matter preceding paragraph (1), by striking
``and thereby to preserve natural resources,'' and inserting
``to preserve soil, water, and related resources, promote
soil and water quality,''.
(2) Policies and purposes.--Section 7(a)(1) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C.
590g(a)(1)) is amended by striking ``fertility'' and
inserting ``and water quality and related resources''.
(b) Definitions.--Section 10 of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590j) is amended to read as
follows:
``SEC. 10. DEFINITIONS.
``In this Act:
``(1) Agricultural commodity.--The term `agricultural
commodity' means--
``(A) an agricultural commodity; and
``(B) any regional or market classification, type, or grade
of an agricultural commodity.
``(2) Technical assistance.--
[[Page H4516]]
``(A) In general.--The term `technical assistance' means
technical expertise, information, and tools necessary for the
conservation of natural resources on land active in
agricultural, forestry, or related uses.
``(B) Inclusions.--The term `technical assistance'
includes--
``(i) technical services provided directly to farmers,
ranchers, and other eligible entities, such as conservation
planning, technical consultation, and assistance with design
and implementation of conservation practices; and
``(ii) technical infrastructure, including activities,
processes, tools, and agency functions needed to support
delivery of technical services, such as technical standards,
resource inventories, training, data, technology, monitoring,
and effects analyses.''.
SEC. 2803. SMALL WATERSHED REHABILITATION PROGRAM.
(a) Availability of Funds.--Section 14(h)(1) of the
Watershed Protection and Flood Prevention Act (16 U.S.C.
1012(h)(1)) is amended by adding at the end the following new
subparagraph:
``(G) $100,000,000 for fiscal year 2009, to be available
until expended.''.
(b) Authorization of Appropriations.--Section 14(h)(2)(E)
of the Watershed Protection and Flood Prevention Act (16
U.S.C. 1012(h)(2)(E)) is amended by striking ``fiscal year
2007'' and inserting ``each of fiscal years 2008 through
2012''.
SEC. 2804. AMENDMENTS TO SOIL AND WATER RESOURCES
CONSERVATION ACT OF 1977.
(a) Congressional Findings.--Section 2 of the Soil and
Water Resources Conservation Act of 1977 (16 U.S.C. 2001) is
amended--
(1) in paragraph (2), by striking ``base, of the'' and
inserting ``base of the''; and
(2) in paragraph (3), by striking ``(3)'' and all that
follows through ``Since individual'' and inserting the
following:
``(3) Appraisal and inventory of resources, assessment and
inventory of conservation needs, evaluation of the effects of
conservation practices, and analyses of alternative
approaches to existing conservation programs are basic to
effective soil, water, and related natural resource
conservation.
``(4) Since individual''.
(b) Continuing Appraisal of Soil, Water, and Related
Resources.--Section 5 of the Soil and Water Resources
Conservation Act of 1977 (16 U.S.C. 2004) is amended--
(1) in subsection (a)--
(A) in paragraph (5), by striking ``and'' at the end;
(B) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following new paragraph:
``(7) data on conservation plans, conservation practices
planned or implemented, environmental outcomes, economic
costs, and related matters under conservation programs
administered by the Secretary.'';
(2) by redesignating subsection (d) as subsection (e);
(3) by inserting after subsection (c) the following new
subsection:
``(d) Evaluation of Appraisal.--In conducting the appraisal
described in subsection (a), the Secretary shall concurrently
solicit and evaluate recommendations for improving the
appraisal, including the content, scope, process,
participation in, and other elements of the appraisal, as
determined by the Secretary.''; and
(4) in subsection (e), as redesignated by paragraph (2), by
striking the first sentence and inserting the following:
``The Secretary shall conduct comprehensive appraisals under
this section, to be completed by December 31, 2010, and
December 31, 2015.''.
(c) Soil and Water Conservation Program.--Section 6 of the
Soil and Water Resources Conservation Act of 1977 (16 U.S.C.
2005) is amended--
(1) by redesignating subsection (b) as subsection (d);
(2) by inserting after subsection (a) the following new
subsections:
``(b) Evaluation of Existing Conservation Programs.--In
evaluating existing conservation programs, the Secretary
shall emphasize demonstration, innovation, and monitoring of
specific program components in order to encourage further
development and adoption of practices and performance-based
standards.
``(c) Improvement to Program.--In developing a national
soil and water conservation program under subsection (a), the
Secretary shall solicit and evaluate recommendations for
improving the program, including the content, scope, process,
participation in, and other elements of the program, as
determined by the Secretary.''; and
(3) in subsection (d), as redesignated by paragraph (1), by
striking ``December 31, 1979'' and all that follows through
``December 31, 2007'' and inserting ``December 31, 2011, and
December 31, 2016''.
(d) Reports to Congress.--Section 7 of the Soil and Water
Resources Conservation Act of 1977 (16 U.S.C. 2006) is
amended to read as follows:
``SEC. 7. REPORTS TO CONGRESS.
``(a) Appraisal.--Not later than the date on which Congress
convenes in 2011 and 2016, the President shall transmit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate the appraisal developed under section 5 and
completed before the end of the previous year.
``(b) Program and Statement of Policy.--Not later than the
date on which Congress convenes in 2012 and 2017, the
President shall transmit to the Committee on Agriculture of
the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate--
``(1) the initial program or updated program developed
under section 6 and completed before the end of the previous
year;
``(2) a detailed statement of policy regarding soil and
water conservation activities of the Department of
Agriculture; and
``(3) a special evaluation of the status, conditions, and
trends of soil quality on cropland in the United States that
addresses the challenges and opportunities for reducing soil
erosion to tolerance levels.
``(c) Improvements to Appraisal and Program.--Not later
than the date on which Congress convenes in 2012, the
Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report describing the
plans of the Department of Agriculture for improving the
resource appraisal and national conservation program required
under this Act, based on the recommendations received under
sections 5(d) and 6(c).''.
(e) Termination of Program.--Section 10 of the Soil and
Water Resources Conservation Act of 1977 (16 U.S.C. 2009) is
amended by striking ``2008'' and inserting ``2018''.
SEC. 2805. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.
(a) Locally Led Planning Process.--Section 1528 of the
Agriculture and Food Act of 1981 (16 U.S.C. 3451) is
amended--
(1) in paragraph (1), in the matter preceding subparagraph
(A), by striking ``planning process'' and inserting ``locally
led planning process'';
(2) by redesignating paragraphs (8) and (9) as paragraphs
(9) and (8), respectively, and moving those paragraphs so as
to appear in numerical order;
(3) in paragraph (8) (as so redesignated)--
(A) by striking ``PLANNING PROCESS'' and inserting
``Locally led planning process''; and
(B) by striking ``council'' and inserting ``locally led
council''.
(b) Authorized Technical Assistance.--Section 1528(13) of
the Agriculture and Food Act of 1981 (16 U.S.C. 3451(13)) is
amended by striking subparagraphs (C) and (D) and inserting
the following new subparagraphs:
``(C) providing assistance for the implementation of area
plans and projects; and
``(D) providing services that involve the resources of
Department of Agriculture programs in a local community, as
defined in the locally led planning process.''.
(c) Improved Provision of Technical Assistance.--Section
1531 of the Agriculture and Food Act of 1981 (16 U.S.C. 3454)
is amended--
(1) by inserting ``(a) In General.--'' before ``In
carrying''; and
(2) by adding at the end the following new subsection:
``(b) Coordinator.--
``(1) In general.--To improve the provision of technical
assistance to councils under this subtitle, the Secretary
shall designate for each council an individual to be the
coordinator for the council.
``(2) Responsibility.--A coordinator for a council shall be
directly responsible for the provision of technical
assistance to the council.''.
(d) Program Evaluation.--Section 1534 of the Agriculture
and Food Act of 1981 (16 U.S.C. 3457) is repealed.
SEC. 2806. USE OF FUNDS IN BASIN FUNDS FOR SALINITY CONTROL
ACTIVITIES UPSTREAM OF IMPERIAL DAM.
(a) In General.--Section 202(a) of the Colorado River Basin
Salinity Control Act (43 U.S.C. 1592(a)) is amended by adding
at the end the following new paragraph:
``(7) Basin states program.--
``(A) In general.--A Basin States Program that the
Secretary, acting through the Bureau of Reclamation, shall
implement to carry out salinity control activities in the
Colorado River Basin using funds made available under section
205(f).
``(B) Assistance.--The Secretary, in consultation with the
Colorado River Basin Salinity Control Advisory Council, shall
carry out this paragraph using funds described in
subparagraph (A) directly or by providing grants, grant
commitments, or advance funds to Federal or non-Federal
entities under such terms and conditions as the Secretary may
require.
``(C) Activities.--Funds described in subparagraph (A)
shall be used to carry out, as determined by the Secretary--
``(i) cost-effective measures and associated works to
reduce salinity from saline springs, leaking wells,
irrigation sources, industrial sources, erosion of public and
private land, or other sources;
``(ii) operation and maintenance of salinity control
features constructed under the Colorado River Basin salinity
control program; and
``(iii) studies, planning, and administration of salinity
control activities.
``(D) Report.--
``(i) In general.--Not later than 30 days before
implementing the program established under this paragraph,
the Secretary shall submit to the appropriate committees of
Congress a planning report that describes the proposed
implementation of the program.
``(ii) Implementation.--The Secretary may not expend funds
to implement the program established under this paragraph
before the expiration of the 30-day period beginning on the
date on which the Secretary submits the
[[Page H4517]]
report, or any revision to the report, under clause (i).''.
(b) Conforming Amendments.--
(1) Section 202 of the Colorado River Basin Salinity
Control Act (43 U.S.C. 1592) is amended--
(A) in subsection (a), in the matter preceding paragraph
(1), by striking ``program'' and inserting ``programs''; and
(B) in subsection (b)(4)--
(i) by striking ``program'' and inserting ``programs''; and
(ii) by striking ``and (6)'' and inserting ``(6), and
(7)''.
(2) Section 205 of the Colorado River Basin Salinity
Control Act (43 U.S.C. 1595) is amended by striking
subsection (f) and inserting the following new subsection:
``(f) Up-Front Cost Share.--
``(1) In general.--Effective beginning on the date of
enactment of this paragraph, subject to paragraph (3), the
cost share obligations required by this section shall be met
through an up-front cost share from the Basin Funds, in the
same proportions as the cost allocations required under
subsection (a), as provided in paragraph (2).
``(2) Basin states program.--The Secretary shall expend the
required cost share funds described in paragraph (1) through
the Basin States Program for salinity control activities
established under section 202(a)(7).
``(3) Existing salinity control activities.--The cost share
contribution required by this section shall continue to be
met through repayment in a manner consistent with this
section for all salinity control activities for which
repayment was commenced prior to the date of enactment of
this paragraph.''.
SEC. 2807. DESERT TERMINAL LAKES.
Section 2507 of the Farm Security and Rural Investment Act
of 2002 (43 U.S.C. 2211 note; Public Law 107-171) is
amended--
(1) in subsection (a)--
(A) by striking ``(a)'' and all that follows through
``$200,000,000'' and inserting ``(a) Transfer.--Subject to
subsection (b) and paragraph (1) of section 207(a) of Public
Law 108-7 (117 Stat. 146), notwithstanding paragraph (3) of
that section, on the date of enactment of the Food,
Conservation, and Energy Act of 2008, the Secretary of
Agriculture shall transfer $175,000,000''; and
(B) by striking the quotation marks at the beginning of
paragraphs (1) and (2); and
(2) by striking subsection (b) and inserting the following
new subsection:
``(b) Permitted Uses.--In any case in which there are
willing sellers, the funds described in subsection (a) may be
used--
``(1) to lease water; or
``(2) to purchase land, water appurtenant to the land, and
related interests in the Walker River Basin in accordance
with section 208(a)(1)(A) of the Energy and Water Development
Appropriations Act, 2006 (Public Law 109-103; 119 Stat.
2268).''.
Subtitle J--Miscellaneous Conservation Provisions
SEC. 2901. HIGH PLAINS WATER STUDY.
Notwithstanding any other provision of this Act, no person
shall become ineligible for any program benefits under this
Act or an amendment made by this Act solely as a result of
participating in a 1-time study of recharge potential for the
Ogallala Aquifer in the High Plains of the State of Texas.
SEC. 2902. NAMING OF NATIONAL PLANT MATERIALS CENTER AT
BELTSVILLE, MARYLAND, IN HONOR OF NORMAN A.
BERG.
The National Plant Materials Center at Beltsville,
Maryland, referenced in section 613.5(a) of title 7, Code of
Federal Regulations, shall be known and designated as the
``Norman A. Berg National Plant Materials Center''. Any
reference in a law, map, regulation, document, paper, or
other record of the United States to such National Plant
Materials Center shall be deemed to be a reference to the
Norman A. Berg National Plant Materials Center.
SEC. 2903. TRANSITION.
(a) Continuation of Programs in Fiscal Year 2008.--Except
as otherwise provided by an amendment made by this title, the
Secretary of Agriculture shall continue to carry out any
program or activity covered by title XII of the Food Security
Act (16 U.S.C. 3801 et seq.) until September 30, 2008, using
the provisions of law applicable to the program or activity
as they existed on the day before the date of the enactment
of this Act and using funds made available under such title
for fiscal year 2008 for the program or activity.
(b) Ground and Surface Water Conservation Program.--During
the period beginning on the date of the enactment of this Act
and ending on September 30, 2008, the Secretary of
Agriculture shall continue to carry out the ground and
surface water conservation program under section 1240I of the
Food Security Act of 1985 (16 U.S.C. 3839aa-9), as in effect
before the amendment made by section 2510, using the terms,
conditions, and funds available to the Secretary to carry out
such program on the day before the date of the enactment of
this Act.
SEC. 2904. REGULATIONS.
(a) Issuance.--Except as otherwise provided in this title
or an amendment made by this title, not later than 90 days
after the date of enactment of this Act, the Secretary of
Agriculture, in consultation with the Commodity Credit
Corporation, shall promulgate such regulations as are
necessary to implement this title.
(b) Applicable Authority.--The promulgation of regulations
under subsection (a) and administration of this title--
(1) shall be carried out without regard to--
(A) chapter 35 of title 44, United States Code (commonly
known as the Paperwork Reduction Act); and
(B) the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971 (36 Fed. Reg. 13804) relating to
notices of proposed rulemaking and public participation in
rulemaking; and
(2) may--
(A) be promulgated with an opportunity for notice and
comment; or
(B) if determined to be appropriate by the Secretary of
Agriculture or the Commodity Credit Corporation, as an
interim rule effective on publication with an opportunity for
notice and comment.
(c) Congressional Review of Agency Rulemaking.--In carrying
out this section, the Secretary shall use the authority
provided under section 808(2) of title 5, United States Code.
TITLE III--TRADE
Subtitle A--Food for Peace Act
SEC. 3001. SHORT TITLE.
(a) In General.--Section 1 of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1691 note;
104 Stat. 3633) is amended by striking ``Agricultural Trade
Development and Assistance Act of 1954'' and inserting ``Food
for Peace Act''.
(b) Conforming Amendments.--
(1) In general.--Each provision of law described in
paragraph (2) is amended--
(A) by striking ``Agricultural Trade Development and
Assistance Act of 1954'' each place it appears and inserting
``Food for Peace Act''; and
(B) in each section heading, by striking ``AGRICULTURAL
TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954'' each place it
appears and inserting ``FOOD FOR PEACE ACT''.
(2) Provisions of law.--The provisions of law referred to
in paragraph (1) are the following:
(A) The Agriculture and Food Act of 1981 (Public Law 97-98;
95 Stat. 1213).
(B) The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.).
(C) Section 9(a) of the Military Construction Codification
Act (7 U.S.C. 1704c).
(D) Section 201 of the Africa: Seeds of Hope Act of 1998 (7
U.S.C. 1721 note; Public Law 105-385).
(E) The Bill Emerson Humanitarian Trust Act (7 U.S.C.
1736f-1 et seq.).
(F) The Food for Progress Act of 1985 (7 U.S.C. 1736o).
(G) Section 3107 of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 1736o-1).
(H) Sections 605B and 606C of the Act of August 28, 1954
(commonly known as the ``Agricultural Act of 1954'') (7
U.S.C. 1765b, 1766b).
(I) Section 206 of the Agricultural Act of 1956 (7 U.S.C.
1856).
(J) The Agricultural Competitiveness and Trade Act of 1988
(7 U.S.C. 5201 et seq.).
(K) The Agricultural Trade Act of 1978 (7 U.S.C. 5601 et
seq.).
(L) The Export-Import Bank Act of 1945 (12 U.S.C. 635 et
seq.).
(M) Section 301 of title 13, United States Code.
(N) Section 8 of the Endangered Species Act of 1973 (16
U.S.C. 1537).
(O) Section 604 of the Enterprise for the Americas Act of
1992 (22 U.S.C. 2077).
(P) Section 5 of the International Health Research Act of
1960 (22 U.S.C. 2103).
(Q) The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et
seq.).
(R) The Horn of Africa Recovery and Food Security Act (22
U.S.C. 2151 note; Public Law 102-274).
(S) Section 105 of the Mutual Educational and Cultural
Exchange Act of 1961 (22 U.S.C. 2455).
(T) Section 35 of the Foreign Military Sales Act (22 U.S.C.
2775).
(U) The Support for East European Democracy (SEED) Act of
1989 (22 U.S.C. 5401 et seq.).
(V) Section 1707 of the Cuban Democracy Act of 1992 (22
U.S.C. 6006).
(W) The Cuban Liberty and Democratic Solidarity (LIBERTAD)
Act of 1996 (22 U.S.C. 6021 et seq.).
(X) Section 902 of the Trade Sanctions Reform and Export
Enhancement Act of 2000 (22 U.S.C. 7201).
(Y) Chapter 553 of title 46, United State Code.
(Z) Section 4 of the Strategic and Critical Materials Stock
Piling Act (50 U.S.C. 98c).
(AA) The Food, Agriculture, Conservation, and Trade Act of
1990 (Public Law 101-624; 104 Stat. 3359).
(BB) Section 738 of the Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies
Appropriations Act, 2001 (Public Law 106-387; 114 Stat.
1549A-34).
(c) References.--Any reference in any Federal, State,
tribal, or local law (including regulations) to the
``Agricultural Trade Development and Assistance Act of 1954''
shall be considered to be a reference to the ``Food for Peace
Act''.
SEC. 3002. UNITED STATES POLICY.
Section 2 of the Food for Peace Act (7 U.S.C. 1691) is
amended--
(1) by striking paragraph (4); and
(2) by redesignating paragraphs (5) and (6) as paragraphs
(4) and (5), respectively.
[[Page H4518]]
SEC. 3003. FOOD AID TO DEVELOPING COUNTRIES.
Section 3(b) of the Food for Peace Act (7 U.S.C. 1691a(b))
is amended by striking ``(b)'' and all that follows through
paragraph (1) and inserting the following:
``(b) Sense of Congress.--It is the sense of Congress
that--
``(1) in negotiations at the Food Aid Convention, the World
Trade Organization, the United Nations Food and Agriculture
Organization, and other appropriate venues, the President
shall--
``(A) seek commitments of higher levels of food aid by
donors in order to meet the legitimate needs of developing
countries;
``(B) ensure, to the maximum extent practicable, that
humanitarian nongovernmental organizations, recipient country
governments, charitable bodies, and international
organizations shall continue--
``(i) to be eligible to receive resources based on
assessments of need conducted by those organizations and
entities; and
``(ii) to implement food aid programs in agreements with
donor countries; and
``(C) ensure, to the maximum extent practicable, that
options for providing food aid for emergency and nonemergency
needs shall not be subject to limitation, including in-kind
commodities, provision of funds for agricultural commodity
procurement, and monetization of commodities, on the
condition that the provision of those commodities or funds--
``(i) is based on assessments of need and intended to
benefit the food security of, or otherwise assist,
recipients, and
``(ii) is provided in a manner that avoids disincentives to
local agricultural production and marketing and with minimal
potential for disruption of commercial markets; and''.
SEC. 3004. TRADE AND DEVELOPMENT ASSISTANCE.
(a) Title I of the Food for Peace Act (7 U.S.C. 1701 et
seq.) is amended in the title heading, by striking ``TRADE
AND DEVELOPMENT ASSISTANCE'' and inserting ``ECONOMIC
ASSISTANCE AND FOOD SECURITY''.
(b) Section 101 of the Food for Peace Act (7 U.S.C. 1701)
is amended in the section heading, by striking ``TRADE AND
DEVELOPMENT ASSISTANCE'' and inserting ``ECONOMIC ASSISTANCE
AND FOOD SECURITY''.
SEC. 3005. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND
PRIVATE ENTITIES.
Section 102 of the Food for Peace Act (7 U.S.C. 1702) is
amended--
(1) in subsection (a)--
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) and (3) as paragraphs
(1) and (2), respectively; and
(2) by striking subsection (c).
SEC. 3006. USE OF LOCAL CURRENCY PAYMENTS.
Section 104(c) of the Food for Peace Act (7 U.S.C. 1704(c))
is amended--
(1) in the matter preceding paragraph (1), by inserting ``,
through agreements with recipient governments, private
voluntary organizations, and cooperatives,'' after
``developing country'';
(2) by striking paragraph (1);
(3) in paragraph (2)--
(A) in subparagraph (C), by striking ``and'' at the end;
(B) in subparagraph (D), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(E) the improvement of the trade capacity of the
recipient country.'';
(4) in paragraph (3), by striking ``agricultural business
development and agricultural trade expansion'' and inserting
``development of agricultural businesses and agricultural
trade capacity'';
(5) in paragraph (4), by striking ``, or otherwise'' and
all that follows through ``United States'';
(6) in paragraph (5), by inserting ``to promote
agricultural products produced in appropriate developing
countries'' after ``trade fairs''; and
(7) by redesignating paragraphs (2) through (9) as
paragraphs (1) through (8), respectively.
SEC. 3007. GENERAL AUTHORITY.
Section 201 of the Food for Peace Act (7 U.S.C. 1721) is
amended--
(1) by striking paragraph (1) and inserting the following:
``(1) address famine and food crises, and respond to
emergency food needs, arising from man-made and natural
disasters;'';
(2) in paragraph (5)--
(A) by inserting ``food security and support'' after
``promote''; and
(B) by striking ``; and'' and inserting a semicolon;
(3) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following:
``(7) promote economic and nutritional security by
increasing educational, training, and other productive
activities.''.
SEC. 3008. PROVISION OF AGRICULTURAL COMMODITIES.
Section 202 of the Food for Peace Act (7 U.S.C. 1722) is
amended--
(1) in subsection (b)(2), by striking ``may not deny a
request for funds'' and inserting ``may not use as a sole
rationale for denying a request for funds'';
(2) in subsection (e)(1)--
(A) in the matter preceding subparagraph (A), by striking
``not less than 5 percent nor more than 10 percent'' and
inserting ``not less than 7.5 percent nor more than 13
percent'';
(B) in subparagraph (A), by striking ``; and'' and
inserting a semicolon;
(C) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(D) by adding at the end the following:
``(C) improving and implementing methodologies for food aid
programs, including needs assessments (upon the request of
the Administrator), monitoring, and evaluation.''; and
(3) by striking subsection (h) and inserting the following:
``(h) Food Aid Quality.--
``(1) In general.--The Administrator shall use funds made
available for fiscal year 2009 and subsequent fiscal years to
carry out this title--
``(A) to assess the types and quality of agricultural
commodities and products donated for food aid;
``(B) to adjust products and formulations (including the
potential introduction of new fortificants and products) as
necessary to cost-effectively meet nutrient needs of target
populations; and
``(C) to test prototypes.
``(2) Administration.--The Administrator--
``(A) shall carry out this subsection in consultation with
and through independent entities with proven expertise in
food aid commodity quality enhancements;
``(B) may enter into contracts to obtain the services of
such entities; and
``(C) shall consult with the Food Aid Consultative Group on
how to carry out this subsection.
``(3) Funding limitation.--Of the funds made available
under section 207(f), for fiscal years 2009 through 2011, not
more than $4,500,000 may be used to carry out this
subsection.''.
SEC. 3009. GENERATION AND USE OF CURRENCIES BY PRIVATE
VOLUNTARY ORGANIZATIONS AND COOPERATIVES.
Section 203(b) of the Food for Peace Act (7 U.S.C. 1723(b))
is amended by striking ``1 or more recipient countries'' and
inserting ``in 1 or more recipient countries''.
SEC. 3010. LEVELS OF ASSISTANCE.
Section 204(a) of the Food for Peace Act (7 U.S.C. 1724(a))
is amended--
(1) in paragraph (1), by striking ``2002 through 2007'' and
inserting ``2008 through 2012''; and
(2) in paragraph (2), by striking ``2002 through 2007'' and
inserting ``2008 through 2012''.
SEC. 3011. FOOD AID CONSULTATIVE GROUP.
Section 205 of the Food for Peace Act (7 U.S.C. 1725) is
amended--
(1) in subsection (b)--
(A) in paragraph (5), by striking ``and'' at the end;
(B) in paragraph (6), by striking the period and inserting
``; and''; and
(C) by inserting at the end the following:
``(7) representatives from the maritime transportation
sector involved in transporting agricultural commodities
overseas for programs under this Act.''; and
(2) in subsection (f), by striking ``2007'' and inserting
``2012''.
SEC. 3012. ADMINISTRATION.
Section 207 of the Food for Peace Act (7 U.S.C. 1726a) is
amended--
(1) in subsection (a)(3), by striking ``and the conditions
that must be met for the approval of such proposal'';
(2) in subsection (c), by striking paragraph (3);
(3) by striking subsection (d) and inserting the following:
``(d) Timely Provision of Commodities.--The Administrator,
in consultation with the Secretary, shall develop procedures
that ensure expedited processing of commodity call forwards
in order to provide commodities overseas in a timely manner
and to the extent feasible, according to planned delivery
schedules.''; and
(4) by adding at the end the following:
``(f) Program Oversight, Monitoring, and Evaluation.--
``(1) Duties of administrator.--The Administrator, in
consultation with the Secretary, shall establish systems and
carry out activities--
``(A) to determine the need for assistance provided under
this title; and
``(B) to improve, monitor, and evaluate the effectiveness
and efficiency of the assistance provided under this title to
maximize the impact of the assistance.
``(2) Requirements of systems and activities.--The systems
and activities described in paragraph (1) shall include--
``(A) program monitors in countries that receive assistance
under this title;
``(B) country and regional food aid impact evaluations;
``(C) the identification and implementation of best
practices for food aid programs;
``(D) the evaluation of monetization programs;
``(E) early warning assessments and systems to help prevent
famines; and
``(F) upgraded information technology systems.
``(3) Implementation report.--Not later than 180 days after
the date of enactment of the Food, Conservation, and Energy
Act of 2008, the Administrator shall submit to the
appropriate committees of Congress a report on efforts
undertaken by the Administrator to conduct oversight of
nonemergency programs under this title.
``(4) Government accountability office report.--Not later
than 270 days after the
[[Page H4519]]
date of submission of the report under paragraph (3), the
Comptroller General of the United States shall submit to the
appropriate committees of Congress a report that contains--
``(A) a review of, and comments addressing, the report
described in paragraph (3); and
``(B) recommendations relating to any additional actions
that the Comptroller General of the United States determines
to be necessary to improve the monitoring and evaluation of
assistance provided under this title.
``(5) Contract authority.--
``(A) In general.--Subject to subparagraphs (B) and (C), in
carrying out administrative and management activities
relating to each activity carried out by the Administrator
under paragraph (1), the Administrator may enter into
contracts with 1 or more individuals for personal service to
be performed in recipient countries or neighboring countries.
``(B) Prohibition.--An individual who enters into a
contract with the Administrator under subparagraph (A) shall
not be considered to be an employee of the Federal Government
for the purpose of any law (including regulations)
administered by the Office of Personnel Management.
``(C) Personal service.--Subparagraph (A) does not limit
the ability of the Administrator to enter into a contract
with any individual for personal service under section
202(a).
``(6) Funding.--
``(A) In general.--Subject to section 202(h)(3), in
addition to other funds made available to the Administrator
to carry out the monitoring of emergency food assistance, the
Administrator may implement this subsection using up to
$22,000,000 of the funds made available under this title for
each of fiscal years 2009 through 2012, except for paragraph
(2)(F), for which only $2,500,000 shall be made available
during fiscal year 2009.
``(B) Limitations.--
``(i) In general.--Subject to clause (ii), of the funds
made available under subparagraph (A), for each of fiscal
years 2009 through 2012, not more than $8,000,000 may be used
by the Administrator to carry out paragraph (2)(E).
``(ii) Condition.--No funds shall be made available under
subparagraph (A), in accordance with clause (i), unless not
less than $8,000,000 is made available under chapter 1 of
part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151
et seq.) for such purposes for such fiscal year.
``(g) Project Reporting.--
``(1) In general.--In submitting project reports to the
Administrator, a private voluntary organization or
cooperative shall provide a copy of the report in such form
as is necessary for the report to be displayed for public use
on the website of the United States Agency for International
Development.
``(2) Confidential information.--An organization or
cooperative described in paragraph (1) may omit any
confidential information from the copy of the report
submitted for public display under that paragraph.''.
SEC. 3013. ASSISTANCE FOR STOCKPILING AND RAPID
TRANSPORTATION, DELIVERY, AND DISTRIBUTION OF
SHELF-STABLE PREPACKAGED FOODS.
Section 208(f) of the Food for Peace Act (7 U.S.C.
1726b(f)) is amended--
(1) by striking ``$3,000,000'' and inserting
``$8,000,000''; and
(2) by striking ``2007'' and inserting ``2012''.
SEC. 3014. GENERAL AUTHORITIES AND REQUIREMENTS.
(a) In General.--Section 401 of the Food for Peace Act (7
U.S.C. 1731) is amended--
(1) by striking subsection (a);
(2) by redesignating subsections (b) and (c) as subsections
(a) and (b), respectively; and
(3) in subsection (b) (as so redesignated), by striking
``(b)(1)'' and inserting ``(a)(1)''.
(b) Conforming Amendments.--
(1) Section 406(a) of the Food for Peace Act (7 U.S.C.
1736(a)) is amended by striking ``(that have been determined
to be available under section 401(a))''.
(2) Subsection (e)(1) of the Food for Progress Act of 1985
(7 U.S.C. 1736o(e)(1)) is amended by striking ``determined to
be available under section 401 of the Food for Peace Act''.
SEC. 3015. DEFINITIONS.
Section 402 of the Food for Peace Act (7 U.S.C. 1732) is
amended--
(1) by redesignating paragraphs (3) through (8) as
paragraphs (4) through (9), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) Appropriate committee of congress.--The term
`appropriate committee of Congress' means--
``(A) the Committee on Agriculture, Nutrition, and Forestry
of the Senate;
``(B) the Committee on Agriculture of the House of
Representatives; and
``(C) the Committee on Foreign Affairs of the House of
Representatives.''.
SEC. 3016. USE OF COMMODITY CREDIT CORPORATION.
Section 406(b)(2) of the Food for Peace Act (7 U.S.C.
1736(b)(2)) is amended by inserting ``, including the costs
of carrying out section 415'' before the semicolon.
SEC. 3017. ADMINISTRATIVE PROVISIONS.
Section 407(c) of the Food for Peace Act (7 U.S.C.
1736a(c)) is amended--
(1) in paragraph (4)--
(A) by striking ``Funds made'' and inserting the following:
``(A) In general.--Funds made'';
(B) in subparagraph (A) (as so designated)--
(i) by striking ``2007'' and inserting ``2012''; and
(ii) by striking ``$2,000,000'' and inserting
``$10,000,000''; and
(C) by adding at the end the following:
``(B) Additional prepositioning sites.--
``(i) Feasibility assessments.--The Administrator may carry
out assessments for the establishment of not less than 2
sites to determine the feasibility of, and costs associated
with, using the sites to store and handle agricultural
commodities for prepositioning in foreign countries.
``(ii) Establishment of sites.--Based on the results of
each assessment carried out under clause (i), the
Administrator may establish additional sites for
prepositioning in foreign countries.''; and
(2) by adding at the end the following:
``(5) Nonemergency or multiyear agreements.--Annual
resource requests for ongoing nonemergency or ongoing
multiyear agreements under title II shall be finalized not
later than October 1 of the fiscal year in which the
agricultural commodities will be shipped under the
agreement.''.
SEC. 3018. CONSOLIDATION AND MODIFICATION OF ANNUAL REPORTS
REGARDING AGRICULTURAL TRADE ISSUES.
(a) Annual Reports.--Section 407 of the Food for Peace Act
(7 U.S.C. 1736a) is amended by striking subsection (f) and
inserting the following:
``(f) Annual Reports.--
``(1) Annual report regarding agricultural trade programs
and activities.--
``(A) Annual report.--Not later than April 1 of each fiscal
year, the Administrator and the Secretary shall jointly
prepare and submit to the appropriate committees of Congress
a report regarding each program and activity carried out
under this Act during the prior fiscal year.
``(B) Contents.--An annual report described in subparagraph
(A) shall include, with respect to the prior fiscal year--
``(i) a list that contains a description of each country
and organization that receives food and other assistance
under this Act (including the quantity of food and assistance
provided to each country and organization);
``(ii) a general description of each project and activity
implemented under this Act (including each activity funded
through the use of local currencies);
``(iii) a statement describing the quantity of agricultural
commodities made available to each country pursuant to--
``(I) section 416(b) of the Agricultural Act of 1949 (7
U.S.C. 1431(b)); and
``(II) the Food for Progress Act of 1985 (7 U.S.C. 1736o);
``(iv) an assessment of the progress made through programs
under this Act towards reducing food insecurity in the
populations receiving food assistance from the United States;
``(v) a description of efforts undertaken by the Food Aid
Consultative Group under section 205 to achieve an integrated
and effective food assistance program;
``(vi) an assessment of--
``(I) each program oversight, monitoring, and evaluation
system implemented under section 207(f); and
``(II) the impact of each program oversight, monitoring,
and evaluation system on the effectiveness and efficiency of
assistance provided under this title; and
``(vii) an assessment of the progress made by the
Administrator in addressing issues relating to quality with
respect to the provision of food assistance.
``(2) Annual report regarding the provision of agricultural
commodities to foreign countries.--
``(A) Annual report.--Not later than February 1 of each
fiscal year, the Administrator shall prepare and submit to
the appropriate committees of Congress a report regarding the
administration of food assistance programs under title II to
benefit foreign countries during the prior fiscal year.
``(B) Contents.--An annual report described in subparagraph
(A) shall include, with respect to the prior fiscal year--
``(i) a list that contains a description of each program,
country, and commodity approved for assistance under section
207; and
``(ii) a statement that contains a description of the total
amount of funds approved for transportation and
administrative costs under section 207.''.
(b) Conforming Amendment.--Section 207(e) of the Food for
Peace Act (7 U.S.C. 1726a(e)) is amended--
(1) by striking ``Timely Approval.'' and all that follows
through ``The Administrator'' and inserting ``Timely
Approval.--The Administrator''; and
(2) by striking paragraph (2).
SEC. 3019. EXPIRATION OF ASSISTANCE.
Section 408 of the Food for Peace Act (7 U.S.C. 1736b) is
amended by striking ``2007'' and inserting ``2012''.
SEC. 3020. AUTHORIZATION OF APPROPRIATIONS.
Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is
amended by striking subsection (a) and inserting the
following:
``(a) Authorization of Appropriations.--There are
authorized to be appropriated--
``(1) for fiscal year 2008 and each fiscal year thereafter,
$2,500,000,000 to carry out the emergency and nonemergency
food assistance programs under title II; and
``(2) such sums as are necessary--
``(A) to carry out the concessional credit sales program
established under title I;
[[Page H4520]]
``(B) to carry out the grant program established under
title III; and
``(C) to make payments to the Commodity Credit Corporation
to the extent the Commodity Credit Corporation is not
reimbursed under the programs under this Act for the actual
costs incurred or to be incurred by the Commodity Credit
Corporation in carrying out such programs.''.
SEC. 3021. MINIMUM LEVEL OF NONEMERGENCY FOOD ASSISTANCE.
Section 412 of the Food for Peace Act (7 U.S.C. 1736f) is
amended by adding at the end the following:
``(e) Minimum Level of Nonemergency Food Assistance.--
``(1) Funds and commodities.--Of the amounts made available
to carry out emergency and nonemergency food assistance
programs under title II, not less than $375,000,000 for
fiscal year 2009, $400,000,000 for fiscal year 2010,
$425,000,000 for fiscal year 2011, and $450,000,000 for
fiscal year 2012 shall be expended for nonemergency food
assistance programs under title II.
``(2) Exception.--The President may use less than the
amount specified in paragraph (1) in a fiscal year for
nonemergency food assistance programs under title II only
if--
``(A) the President has made a determination that there is
an urgent need for additional emergency food assistance;
``(B) the funds and commodities held in the Bill Emerson
Humanitarian Trust have been exhausted; and
``(C) the President has submitted to Congress a
supplemental appropriations request for a sum equal to the
amount needed to reach the required spending level for
nonemergency food assistance under paragraph (1) and the
amount exhausted under paragraph (2)(B).
``(3) Notification to congress.--If the President makes the
determination described in paragraph (2)(A), the President
shall submit to Congress written notification that the
determination has been made.''.
SEC. 3022. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS.
Section 413 of the Food for Peace Act (7 U.S.C. 1736g) is
amended--
(1) by striking ``To the maximum'' and inserting the
following:
``(a) In General.--To the maximum''; and
(2) by adding at the end the following:
``(b) Report Regarding Efforts To Improve Procurement
Planning.--
``(1) Report required.--Not later than 90 days after the
date of enactment of the Food, Conservation, and Energy Act
of 2008, the Administrator and the Secretary shall submit to
each appropriate committee of Congress a report that contains
a description of each effort taken by the Administrator and
the Secretary to improve planning for food and transportation
procurement (including efforts to eliminate bunching of food
purchases).
``(2) Contents.--A report required under paragraph (1)
should include a description of each effort taken by the
Administrator and the Secretary--
``(A) to improve the coordination of food purchases made
by--
``(i) the United States Agency for International
Development; and
``(ii) the Department of Agriculture;
``(B) to increase flexibility with respect to procurement
schedules;
``(C) to increase the use of historical analyses and
forecasting; and
``(D) to improve and streamline legal claims processes for
resolving transportation disputes.''.
SEC. 3023. MICRONUTRIENT FORTIFICATION PROGRAMS.
Section 415 of the Food for Peace Act (7 U.S.C. 1736g-2) is
amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``Not later than
September 30, 2003, the Administrator, in consultation with
the Secretary'' and inserting ``Not later than September 30,
2008, the Administrator, in consultation with the
Secretary''; and
(B) in paragraph (2)--
(i) in subparagraph (A), by adding ``and'' after the
semicolon at the end; and
(ii) by striking subparagraphs (B) and (C) and inserting
the following:
``(B) assess and apply technologies and systems to improve
and ensure the quality, shelf life, bioavailability, and
safety of fortified food aid agricultural commodities, and
products of those agricultural commodities, using
recommendations included in the report entitled
`Micronutrient Compliance Review of Fortified Public Law 480
Commodities', published in October 2001, with implementation
by independent entities with proven experience and expertise
in food aid commodity quality enhancements.'';
(2) by striking subsection (b) and redesignating
subsections (c) and (d) as subsections (b) and (c),
respectively; and
(3) in subsection (c) (as redesignated by paragraph (2)),
by striking ``2007'' and inserting ``2012''.
SEC. 3024. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER
PROGRAM.
(a) Minimum Funding.--Section 501(d) of the Food for Peace
Act (7 U.S.C. 1737(d)) is amended in the matter preceding
paragraph (1)--
(1) by striking ``not less than'' and inserting ``not less
than the greater of $10,000,000 or''; and
(2) by striking ``2002 through 2007'' and inserting ``2008
through 2012''.
(b) Authorization of Appropriations.--Section 501(e) of the
Food for Peace Act (7 U.S.C. 1737(e)) is amended by striking
paragraph (1) and inserting the following:
``(1) In general.--There are authorized to be appropriated
for each of fiscal years 2008 through 2012 to carry out the
programs under this section--
``(A) $10,000,000 for sub-Saharan African and Caribbean
Basin countries; and
``(B) $5,000,000 for other developing or middle-income
countries or emerging markets not described in subparagraph
(A).''.
Subtitle B--Agricultural Trade Act of 1978 and Related Statutes
SEC. 3101. EXPORT CREDIT GUARANTEE PROGRAM.
(a) Repeal of Supplier Credit Guarantee Program and
Intermediate Export Credit Guarantee Program.--Section 202 of
the Agricultural Trade Act of 1978 (7 U.S.C. 5622) is
amended--
(1) in subsection (a)--
(A) by striking ``Guarantees.--'' and all that follows
through ``The Commodity'' in paragraph (1) and inserting
``Guarantees.--The Commodity''; and
(B) by striking paragraphs (2) and (3);
(2) by striking subsections (b) and (c);
(3) by redesignating subsections (d) through (l) as
subsections (b) through (j), respectively; and
(4) by adding at the end the following:
``(k) Administration.--
``(1) Definition of long term.--In this subsection, the
term `long term' means a period of 10 or more years.
``(2) Guarantees.--In administering the export credit
guarantees authorized under this section, the Secretary
shall--
``(A) maximize the export sales of agricultural
commodities;
``(B) maximize the export credit guarantees that are made
available and used during the course of a fiscal year;
``(C) develop an approach to risk evaluation that
facilitates accurate country risk designations and timely
adjustments to the designations (on an ongoing basis) in
response to material changes in country risk conditions, with
ongoing opportunity for input and evaluation from the private
sector;
``(D) adjust risk-based guarantees as necessary to ensure
program effectiveness and United States competitiveness; and
``(E) work with industry to ensure, to the maximum extent
practicable, that risk-based fees associated with the
guarantees cover, but do not exceed, the operating costs and
losses over the long term.''.
(b) Funding Levels.--Section 211 of the Agricultural Trade
Act of 1978 (7 U.S.C. 5641) is amended by striking subsection
(b) and inserting the following:
``(b) Export Credit Guarantee Programs.--The Commodity
Credit Corporation shall make available for each of fiscal
years 1996 through 2012 credit guarantees under section
202(a) in an amount equal to but not more than the lesser
of--
``(1) $5,500,000,000 in credit guarantees; or
``(2) the sum of--
``(A) the amount of credit guarantees that the Commodity
Credit Corporation can make available using budget authority
of $40,000,000 for each fiscal year for the costs of the
credit guarantees; and
``(B) the amount of credit guarantees that the Commodity
Credit Corporation can make available using unobligated
budget authority for prior fiscal years.''.
(c) Conforming Amendments.--Section 202 of the Agricultural
Trade Act of 1978 (7 U.S.C. 5622) is amended--
(1) in subsection (b)(4) (as redesignated by subsection
(a)(3)), by striking ``, consistent with the provisions of
subsection (c)'';
(2) in subsection (d) (as redesignated by subsection
(a)(3))--
(A) by striking ``(1)'' and all that follows through ``The
Commodity'' and inserting ``The Commodity''; and
(B) by striking paragraph (2); and
(3) in subsection (g)(2) (as redesignated by subsection
(a)(3)), by striking ``subsections (a) and (b)'' and
inserting ``subsection (a)''.
SEC. 3102. MARKET ACCESS PROGRAM.
(a) Organic Commodities.--Section 203(a) of the
Agricultural Trade Act of 1978 (7 U.S.C. 5623(a)) is amended
by inserting after ``agricultural commodities'' the
following: ``(including commodities that are organically
produced (as defined in section 2103 of the Organic Foods
Production Act of 1990 (7 U.S.C. 6502)))''.
(b) Funding.--Section 211(c)(1)(A) of the Agricultural
Trade Act of 1978 (7 U.S.C. 5641(c)(1)(A)) is amended by
striking ``$200,000,000 for each of fiscal years 2006 and
2007'' and inserting ``$200,000,000 for each of fiscal years
2008 through 2012''.
SEC. 3103. EXPORT ENHANCEMENT PROGRAM.
(a) In General.--Section 301 of the Agricultural Trade Act
of 1978 (7 U.S.C. 5651) is repealed.
(b) Conforming Amendments.--The Agricultural Trade Act of
1978 is amended--
(1) in title III, by striking the title heading and
inserting the following:
``TITLE III--BARRIERS TO EXPORTS'';
(2) by redesignating sections 302 and 303 (7 U.S.C. 5652
and 5653) as sections 301 and 302, respectively;
(3) in section 302 (as redesignated by paragraph (2)), by
striking ``, such as that established under section 301,'';
(4) in section 401 (7 U.S.C. 5661)--
(A) in subsection (a), by striking ``section 201, 202, or
301'' and inserting ``section 201 or 202''; and
(B) in subsection (b), by striking ``sections 201, 202, and
301'' and inserting ``sections 201 and 202''; and
[[Page H4521]]
(5) in section 402(a)(1) (7 U.S.C. 5662(a)(1)), by striking
``sections 201, 202, 203, and 301'' and inserting ``sections
201, 202, and 203''.
SEC. 3104. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.
(a) Report to Congress.--Section 702(c) of the Agricultural
Trade Act of 1978 (7 U.S.C. 5722(c)) is amended by striking
``Committee on International Relations'' and inserting
``Committee on Foreign Affairs''.
(b) Funding.--Section 703(a) of the Agricultural Trade Act
of 1978 (7 U.S.C. 5723(a)) is amended by striking ``2002
through 2007'' and inserting ``2008 through 2012''.
SEC. 3105. FOOD FOR PROGRESS ACT OF 1985.
(a) In General.--The Food for Progress Act of 1985 (7
U.S.C. 1736o) is amended by striking ``2007'' each place it
appears and inserting ``2012''.
(b) Designation of Project in Sub-Saharan Africa.--The Food
for Progress Act of 1985 (7 U.S.C. 1736o) is amended in
subsection (f) by adding at the end the following:
``(6) Project in malawi.--
``(A) In general.--In carrying out this section during
fiscal year 2009, the President shall approve not less than 1
multiyear project for Malawi--
``(i) to promote sustainable agriculture; and
``(ii) to increase the number of women in leadership
positions.
``(B) Use of eligible commodities.--Of the eligible
commodities used to carry out this section during the period
in which the project described in subparagraph (A) is carried
out, the President shall carry out the project using eligible
commodities with a total value of not less than $3,000,000
during the course of the project.''.
SEC. 3106. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND
CHILD NUTRITION PROGRAM.
Section 3107 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 1736o-1) is amended--
(1) in subsections (b), (c)(2)(B), (f)(1), (h), (i), and
(l)(1), by striking ``President'' each place it appears and
inserting ``Secretary'';
(2) in subsection (d), by striking ``The President shall
designate 1 or more Federal agencies'' and inserting ``The
Secretary shall'';
(3) in paragraph (f)(2), by striking ``implementing
agency'' and inserting ``Secretary''; and
(4) in subsection (l)--
(A) by striking paragraph (1) and inserting the following:
``(1) Use of commodity credit corporation funds.--Of the
funds of the Commodity Credit Corporation, the Secretary
shall use to carry out this section $84,000,000 for fiscal
year 2009, to remain available until expended.'';
(B) in paragraph (2), by striking ``2004 through 2007'' and
inserting ``2008 through 2012''; and
(C) in paragraph (3), by striking ``any Federal agency
implementing or assisting'' and inserting ``the Department of
Agriculture or any other Federal agency assisting''.
Subtitle C--Miscellaneous
SEC. 3201. BILL EMERSON HUMANITARIAN TRUST.
Section 302 of the Bill Emerson Humanitarian Trust Act (7
U.S.C. 1736f-1) is amended--
(1) in subsection (a)--
(A) by striking ``establish a trust stock'' and inserting
``establish and maintain a trust''; and
(B) by striking ``or any combination of the commodities,
totaling not more than 4,000,000 metric tons'' and inserting
``any combination of the commodities, or funds'';
(2) in subsection (b)--
(A) in paragraph (1), by striking subparagraph (D) and
inserting the following:
``(D) funds made available--
``(i) under paragraph (2)(B);
``(ii) as a result of an exchange of any commodity held in
the trust for an equivalent amount of funds from the market,
if the Secretary determines that such a sale of the commodity
on the market will not unduly disrupt domestic markets; or
``(iii) to maximize the value of the trust, in accordance
with subsection (d)(3).''; and
(B) in paragraph (2)(B)--
(i) in clause (i)--
(I) by striking ``2007'' each place it appears and
inserting ``2012'';
(II) by striking ``(c)(2)'' and inserting ``(c)(1)''; and
(III) by striking ``and'' at the end;
(ii) in clause (ii), by striking the period at the end and
inserting ``; or''; and
(iii) by adding at the end the following:
``(iii) from funds accrued through the management of the
trust under subsection (d).'';
(3) in subsection (c)--
(A) by striking paragraphs (1) and (2) and inserting the
following:
``(1) Releases for emergency assistance.--
``(A) Definition of emergency.--
``(i) In general.--In this paragraph, the term `emergency'
means an urgent situation--
``(I) in which there is clear evidence that an event or
series of events described in clause (ii) has occurred--
``(aa) that causes human suffering; and
``(bb) for which a government concerned has not chosen, or
has not the means, to remedy; or
``(II) created by a demonstrably abnormal event or series
of events that produces dislocation in the lives of residents
of a country or region of a country on an exceptional scale.
``(ii) Event or series of events.--An event or series of
events referred to in clause (i) includes 1 or more of--
``(I) a sudden calamity, such as an earthquake, flood,
locust infestation, or similar unforeseen disaster;
``(II) a human-made emergency resulting in--
``(aa) a significant influx of refugees;
``(bb) the internal displacement of populations; or
``(cc) the suffering of otherwise affected populations;
``(III) food scarcity conditions caused by slow-onset
events, such as drought, crop failure, pest infestation, and
disease, that result in an erosion of the ability of
communities and vulnerable populations to meet food needs;
and
``(IV) severe food access or availability conditions
resulting from sudden economic shocks, market failure, or
economic collapse, that result in an erosion of the ability
of communities and vulnerable populations to meet food needs.
``(B) Releases.--
``(i) In general.--Any funds or commodities held in the
trust may be released to provide food, and cover any
associated costs, under title II of the Food for Peace Act (7
U.S.C. 1721 et seq.)--
``(I) to assist in averting an emergency, including during
the period immediately preceding the emergency;
``(II) to respond to an emergency; or
``(III) for recovery and rehabilitation after an emergency.
``(ii) Procedure.--A release under clause (i) shall be
carried out in the same manner, and pursuant to the same
authority as provided in title II of that Act.
``(C) Insufficiency of other funds.--The funds and
commodities held in the trust shall be made immediately
available on a determination by the Administrator that funds
available for emergency needs under title II of that Act (7
U.S.C. 1721 et seq.) for a fiscal year are insufficient to
meet emergency needs during the fiscal year.
``(D) Waiver relating to minimum tonnage requirements.--
Nothing in this paragraph requires a waiver by the
Administrator of the Agency for International Development
under section 204(a)(3) of the Food for Peace Act (7 U.S.C.
1724(a)(3)) as a condition for a release of funds or
commodities under subparagraph (B).''; and
(B) by redesignating paragraphs (3) through (5) as
paragraphs (2) through (4), respectively;
(4) in subsection (d)--
(A) by redesignating paragraphs (1) through (3) as
subparagraphs (A) through (C), respectively, and indenting
the subparagraphs appropriately;
(B) by striking the subsection designation and heading and
all that follows through ``provide--'' and inserting the
following:
``(d) Management of Trust.--
``(1) In general.--The Secretary shall provide for the
management of eligible commodities and funds held in the
trust in a manner that is consistent with maximizing the
value of the trust, as determined by the Secretary.
``(2) Eligible commodities.--The Secretary shall provide--
'';
(C) in paragraph (2) (as redesignated by subparagraph
(B))--
(i) in subparagraph (B) (as redesignated by subparagraph
(A)), by striking ``and'' at the end; and
(ii) in subparagraph (C) (as redesignated by subparagraph
(A)), by striking the period at the end and inserting ``;
and''; and
(D) by adding at the end the following:
``(3) Funds.--
``(A) Exchanges.--If any commodity held in the trust is
exchanged for funds under subsection (b)(1)(D)(ii), the funds
shall be held in the trust until the date on which the funds
are released in the case of an emergency under subsection
(c).
``(B) Investment.--The Secretary may invest funds held in
the trust in any short-term obligation of the United States
or any other low-risk short-term instrument or security
insured by the Federal Government in which a regulated
insurance company may invest under the laws of the District
of Columbia.''; and
(5) in subsection (h), in each of paragraphs (1) and (2),
by striking ``2007'' each place it appears and inserting
``2012''.
SEC. 3202. GLOBAL CROP DIVERSITY TRUST.
(a) Contribution.--The Administrator of the United States
Agency for International Development shall contribute funds
to endow the Global Crop Diversity Trust (referred to in this
section as the ``Trust'') to assist in the conservation of
genetic diversity in food crops through the collection and
storage of the germplasm of food crops in a manner that
provides for--
(1) the maintenance and storage of seed collections;
(2) the documentation and cataloguing of the genetics and
characteristics of conserved seeds to ensure efficient
reference for researchers, plant breeders, and the public;
(3) building the capacity of seed collection in developing
countries;
(4) making information regarding crop genetic data publicly
available for researchers, plant breeders, and the public
(including through the provision of an accessible Internet
website);
(5) the operation and maintenance of a back-up facility in
which are stored duplicate samples of seeds, in the case of
natural or man-made disasters; and
[[Page H4522]]
(6) oversight designed to ensure international coordination
of those actions and efficient, public accessibility to that
diversity through a cost-effective system.
(b) United States Contribution Limit.--The aggregate
contributions of funds of the Federal Government provided to
the Trust shall not exceed 25 percent of the total amount of
funds contributed to the Trust from all sources.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $60,000,000 for
the period of fiscal years 2008 through 2012.
SEC. 3203. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.
Section 3205 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 5680) is amended by striking subsection (d)
and inserting the following:
``(d) Annual Report.--Not later than 180 days after the
date of enactment of the Food, Conservation, and Energy Act
of 2008 and annually thereafter, the Secretary shall submit
to the appropriate committees of Congress a report that
contains, for the period covered by the report, a description
of each factor that affects the export of specialty crops,
including each factor relating to any--
``(1) significant sanitary or phytosanitary issue; or
``(2) trade barrier.
``(e) Funding.--
``(1) Commodity credit corporation.--The Secretary shall
use the funds, facilities, and authorities of the Commodity
Credit Corporation to carry out this section.
``(2) Funding amounts.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out this
section--
``(A) $4,000,000 for fiscal year 2008;
``(B) $7,000,000 for fiscal year 2009;
``(C) $8,000,000 for fiscal year 2010;
``(D) $9,000,000 for fiscal year 2011; and
``(E) $9,000,000 for fiscal year 2012.''.
SEC. 3204. EMERGING MARKETS AND FACILITY GUARANTEE LOAN
PROGRAM.
Section 1542 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5622 note; Public Law 101-624) is
amended--
(1) in subsection (a), by striking ``2007'' and inserting
``2012'';
(2) in subsection (b)--
(A) in the first sentence, by redesignating paragraphs (1)
and (2) as subparagraphs (A) and (B), respectively, and
indenting appropriately;
(B) by striking ``A portion'' and inserting the following:
``(1) In general.--A portion'';
(C) in the second sentence, by striking ``The Commodity
Credit Corporation'' and inserting the following:
``(2) Priority.--The Commodity Credit Corporation''; and
(D) by adding at the end the following:
``(3) Construction waiver.--The Secretary may waive any
applicable requirements relating to the use of United States
goods in the construction of a proposed facility, if the
Secretary determines that--
``(A) goods from the United States are not available; or
``(B) the use of goods from the United States is not
practicable.
``(4) Term of guarantee.--A facility payment guarantee
under this subsection shall be for a term that is not more
than the lesser of--
``(A) the term of the depreciation schedule of the facility
assisted; or
``(B) 20 years.''; and
(3) in subsection (d)(1)(A)(i) by striking ``2007'' and
inserting ``2012''.
SEC. 3205. CONSULTATIVE GROUP TO ELIMINATE THE USE OF CHILD
LABOR AND FORCED LABOR IN IMPORTED AGRICULTURAL
PRODUCTS.
(a) Definitions.--In this section:
(1) Child labor.--The term ``child labor'' means the worst
forms of child labor as defined in International Labor
Convention 182, the Convention Concerning the Prohibition and
Immediate Action for the Elimination of the Worst Forms of
Child Labor, done at Geneva on June 17, 1999.
(2) Consultative group.--The term ``Consultative Group''
means the Consultative Group to Eliminate the Use of Child
Labor and Forced Labor in Imported Agricultural Products
established under subsection (b).
(3) Forced labor.--The term ``forced labor'' means all work
or service--
(A) that is exacted from any individual under menace of any
penalty for nonperformance of the work or service, and for
which--
(i) the work or service is not offered voluntarily; or
(ii) the work or service is performed as a result of
coercion, debt bondage, or involuntary servitude (as those
terms are defined in section 103 of the Trafficking Victims
Protection Act of 2000 (22 U.S.C. 7102)); and
(B) by 1 or more individuals who, at the time of performing
the work or service, were being subjected to a severe form of
trafficking in persons (as that term is defined in that
section).
(b) Establishment.--There is established a group to be
known as the ``Consultative Group to Eliminate the Use of
Child Labor and Forced Labor in Imported Agricultural
Products'' to develop recommendations relating to guidelines
to reduce the likelihood that agricultural products or
commodities imported into the United States are produced with
the use of forced labor and child labor.
(c) Duties.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act and in accordance with section 105(d)
of the Trafficking Victims Protection Act of 2000 (22 U.S.C.
7103(d)), as applicable to the importation of agricultural
products made with the use of child labor or forced labor,
the Consultative Group shall develop, and submit to the
Secretary, recommendations relating to a standard set of
practices for independent, third-party monitoring and
verification for the production, processing, and distribution
of agricultural products or commodities to reduce the
likelihood that agricultural products or commodities imported
into the United States are produced with the use of forced
labor or child labor.
(2) Guidelines.--
(A) In general.--Not later than 1 year after the date on
which the Secretary receives recommendations under paragraph
(1), the Secretary shall release guidelines for a voluntary
initiative to enable entities to address issues raised by the
Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et
seq.).
(B) Requirements.--Guidelines released under subparagraph
(A) shall be published in the Federal Register and made
available for public comment for a period of 90 days.
(d) Membership.--The Consultative Group shall be composed
of not more than 13 individuals, of whom--
(1) 2 members shall represent the Department of
Agriculture, as determined by the Secretary;
(2) 1 member shall be the Deputy Under Secretary for
International Affairs of the Department of Labor;
(3) 1 member shall represent the Department of State, as
determined by the Secretary of State;
(4) 3 members shall represent private agriculture-related
enterprises, which may include retailers, food processors,
importers, and producers, of whom at least 1 member shall be
an importer, food processor, or retailer who utilizes
independent, third-party supply chain monitoring for forced
labor or child labor;
(5) 2 members shall represent institutions of higher
education and research institutions, as determined
appropriate by the Bureau of International Labor Affairs of
the Department of Labor;
(6) 1 member shall represent an organization that provides
independent, third-party certification services for labor
standards for producers or importers of agricultural
commodities or products; and
(7) 3 members shall represent organizations described in
section 501(c)(3) of the Internal Revenue Code of 1986 that
have expertise on the issues of international child labor and
do not possess a conflict of interest associated with
establishment of the guidelines issued under subsection
(c)(2), as determined by the Bureau of International Labor
Affairs of the Department of Labor, including representatives
from consumer organizations and trade unions, if appropriate.
(e) Chairperson.--A representative of the Department of
Agriculture appointed under subsection (d)(1), as determined
by the Secretary, shall serve as the chairperson of the
Consultative Group.
(f) Requirements.--Not less than 4 times per year, the
Consultative Group shall meet at the call of the Chairperson,
after reasonable notice to all members, to develop
recommendations described in subsection (c)(1).
(g) Nonapplicability of FACA.--The Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to the
Consultative Group.
(h) Annual Reports.--Not later than 1 year after the date
of enactment of this Act, and annually thereafter through
December 31, 2012, the Secretary shall submit to the
Committees on Agriculture and Foreign Affairs of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report describing the activities
and recommendations of the Consultative Group.
(i) Termination of Authority.--The Consultative Group shall
terminate on December 31, 2012.
SEC. 3206. LOCAL AND REGIONAL FOOD AID PROCUREMENT PROJECTS.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Agency for International Development.
(2) Appropriate committee of congress.--The term
``appropriate committee of Congress'' means--
(A) the Committee on Agriculture, Nutrition, and Forestry
of the Senate;
(B) the Committee on Agriculture of the House of
Representatives; and
(C) the Committee on Foreign Affairs of the House of
Representatives.
(3) Eligible commodity.--The term ``eligible commodity''
means an agricultural commodity (or the product of an
agricultural commodity) that--
(A) is produced in, and procured from, a developing
country; and
(B) at a minimum, meets each nutritional, quality, and
labeling standard of the country that receives the
agricultural commodity, as determined by the Secretary.
(4) Eligible organization.--The term ``eligible
organization'' means an organization that is--
(A) described in section 202(d) of the Food for Peace Act
(7 U.S.C. 1722(d)); and
(B) with respect to nongovernmental organizations, subject
to regulations promulgated or guidelines issued to carry out
this section, including United States audit requirements that
are applicable to nongovernmental organizations.
(b) Study; Field-Based Projects.--
(1) Study.--
(A) In general.--Not later than 30 days after the date of
enactment of this Act, the
[[Page H4523]]
Secretary shall initiate a study of prior local and regional
procurements for food aid programs conducted by--
(i) other donor countries;
(ii) private voluntary organizations; and
(iii) the World Food Program of the United Nations.
(B) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to the
appropriate committees of Congress a report containing the
results of the study conducted under subparagraph (A).
(2) Field-based projects.--
(A) In general.--In accordance with subparagraph (B), the
Secretary shall provide grants to, or enter into cooperative
agreements with, eligible organizations to carry out field-
based projects that consist of local or regional procurements
of eligible commodities to respond to food crises and
disasters in accordance with this section.
(B) Consultation with administrator.--In carrying out the
development and implementation of field-based projects under
subparagraph (A), the Secretary shall consult with the
Administrator.
(c) Procurement.--
(1) In general.--Any eligible commodity that is procured
for a field-based project carried out under subsection (b)(2)
shall be procured through any approach or methodology that
the Secretary considers to be an effective approach or
methodology to provide adequate information regarding the
manner by which to expedite, to the maximum extent
practicable, the provision of food aid to affected
populations without significantly increasing commodity costs
for low-income consumers who procure commodities sourced from
the same markets at which the eligible commodity is procured.
(2) Requirements.--
(A) Impact on local farmers and countries.--The Secretary
shall ensure that the local or regional procurement of any
eligible commodity under this section will not have a
disruptive impact on farmers located in, or the economy of--
(i) the recipient country of the eligible commodity; or
(ii) any country in the region in which the eligible
commodity may be procured.
(B) Transshipment.--The Secretary shall, in accordance with
such terms and conditions as the Secretary considers to be
appropriate, require from each eligible organization
commitments designed to prevent or restrict--
(i) the resale or transshipment of any eligible commodity
procured under this section to any country other than the
recipient country; and
(ii) the use of the eligible commodity for any purpose
other than food aid.
(C) World prices.--
(i) In general.--In carrying out this section, the
Secretary shall take any precaution that the Secretary
considers to be reasonable to ensure that the procurement of
eligible commodities will not unduly disrupt--
(I) world prices for agricultural commodities; or
(II) normal patterns of commercial trade with foreign
countries.
(ii) Procurement price.--The procurement of any eligible
commodity shall be made at a reasonable market price with
respect to the economy of the country in which the eligible
commodity is procured, as determined by the Secretary.
(d) Regulations; Guidelines.--
(1) In general.--In accordance with paragraph (2), not
later than 180 days after the date of completion of the study
under subsection (b)(1), the Secretary shall promulgate
regulations or issue guidelines to carry out field-based
projects under this section.
(2) Requirements.--
(A) Use of study.--In promulgating regulations or issuing
guidelines under paragraph (1), the Secretary shall take into
consideration the results of the study described in
subsection (b)(1).
(B) Public review and comment.--In promulgating regulations
or issuing guidelines under paragraph (1), the Secretary
shall provide an opportunity for public review and comment.
(3) Availability.--The Secretary shall not approve the
procurement of any eligible commodity under this section
until the date on which the Secretary promulgates regulations
or issues guidelines under paragraph (1).
(e) Field-Based Project Grants or Cooperative Agreements.--
(1) In general.--The Secretary shall award grants to, or
enter into cooperative agreements with, eligible
organizations to carry out field-based projects.
(2) Requirements of eligible organizations.--
(A) Application.--
(i) In general.--To be eligible to receive a grant from, or
enter into a cooperative agreement with, the Secretary under
this subsection, an eligible organization shall submit to the
Secretary an application by such date, in such manner, and
containing such information as the Secretary may require.
(ii) Other applicable requirements.--Any other applicable
requirement relating to the submission of proposals for
consideration shall apply to the submission of an application
required under clause (i), as determined by the Secretary.
(B) Completion requirement.--To be eligible to receive a
grant from, or enter into a cooperative agreement with, the
Secretary under this subsection, an eligible organization
shall agree--
(i) to collect by September 30, 2011, data containing the
information required under subsection (f)(1)(B) relating to
the field-based project funded through the grant; and
(ii) to provide to the Secretary the data collected under
clause (i).
(3) Requirements of secretary.--
(A) Project diversity.--
(i) In general.--Subject to clause (ii) and subparagraph
(B), in selecting proposals for field-based projects to fund
under this section, the Secretary shall select a diversity of
projects, including projects located in--
(I) food surplus regions;
(II) food deficit regions (that are carried out using
regional procurement methods); and
(III) multiple geographical regions.
(ii) Priority.--In selecting proposals for field-based
projects under clause (i), the Secretary shall ensure that
the majority of selected proposals are for field-based
projects that--
(I) are located in Africa; and
(II) procure eligible commodities that are produced in
Africa.
(B) Development assistance.--A portion of the funds
provided under this subsection shall be made available for
field-based projects that provide development assistance for
a period of not less than 1 year.
(4) Availability.--The Secretary shall not award a grant to
any eligible organization under paragraph (1) until the date
on which the Secretary promulgates regulations or issues
guidelines under subsection (d)(1).
(f) Independent Evaluations; Report.--
(1) Independent evaluations.--
(A) In general.--Not later than November 1, 2011, the
Secretary shall ensure that an independent third party
conducts an independent evaluation of all field-based
projects that--
(i) addresses each factor described in subparagraph (B);
and
(ii) is conducted in accordance with this section.
(B) Required factors.--The Secretary shall require the
independent third party to develop--
(i) with respect to each relevant market in which an
eligible commodity was procured under this section, a
description of--
(I) the prevailing and historic supply, demand, and price
movements of the market (including the extent of competition
for procurement bids);
(II) the impact of the procurement of the eligible
commodity on producer and consumer prices in the market;
(III) each government market interference or other activity
of the donor country that might have significantly affected
the supply or demand of the eligible commodity in the area at
which the local or regional procurement occurred;
(IV) the quantities and types of eligible commodities
procured in the market;
(V) the time frame for procurement of each eligible
commodity; and
(VI) the total cost of the procurement of each eligible
commodity (including storage, handling, transportation, and
administrative costs);
(ii) an assessment regarding--
(I) whether the requirements of this section have been met;
(II) the impact of different methodologies and approaches
on--
(aa) local and regional agricultural producers (including
large and small agricultural producers);
(bb) markets;
(cc) low-income consumers; and
(dd) program recipients; and
(III) the length of the period beginning on the date on
which the Secretary initiated the procurement process and
ending on the date of delivery of eligible commodities;
(iii) a comparison of different methodologies used to carry
out this section, with respect to--
(I) the benefits to local agriculture;
(II) the impact on markets and consumers;
(III) the period of time required for procurement and
delivery;
(IV) quality and safety assurances; and
(V) implementation costs; and
(iv) to the extent adequate information is available
(including the results of the report required under
subsection (b)(1)(B)), a comparison of the different
methodologies used by other donor countries to make local and
regional procurements.
(C) Independent third party access to records and
reports.--The Secretary shall provide to the independent
third party access to each record and report that the
independent third party determines to be necessary to
complete the independent evaluation.
(D) Public access to records and reports.--Not later than
180 days after the date described in paragraph (2), the
Secretary shall provide public access to each record and
report described in subparagraph (C).
(2) Report.--Not later than 4 years after the date of
enactment of this Act, the Secretary shall submit to the
appropriate committees of Congress a report that contains the
analysis and findings of the independent evaluation conducted
under paragraph (1)(A).
(g) Funding.--
(1) Commodity credit corporation.--The Secretary shall use
the funds, facilities, and authorities of the Commodity
Credit Corporation to carry out this section.
[[Page H4524]]
(2) Funding amounts.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this
section--
(A) $5,000,000 for fiscal year 2009;
(B) $25,000,000 for fiscal year 2010;
(C) $25,000,000 for fiscal year 2011; and
(D) $5,000,000 for fiscal year 2012.
Subtitle D--Softwood Lumber
SEC. 3301. SOFTWOOD LUMBER.
(a) In General.--The Tariff Act of 1930 (19 U.S.C. 1202 et
seq.) is amended by adding at the end the following new
title:
``TITLE VIII--SOFTWOOD LUMBER
``SEC. 801. SHORT TITLE; TABLE OF CONTENTS.
``(a) Short Title.--This title may be cited as the
`Softwood Lumber Act of 2008'.
``(b) Table of Contents.--The table of contents for this
title is as follows:
``TITLE VIII--SOFTWOOD LUMBER
``Sec. 801. Short title; table of contents.
``Sec. 802. Definitions.
``Sec. 803. Establishment of softwood lumber importer declaration
program.
``Sec. 804. Scope of softwood lumber importer declaration program.
``Sec. 805. Export charge determination and publication.
``Sec. 806. Reconciliation.
``Sec. 807. Verification.
``Sec. 808. Penalties.
``Sec. 809. Reports.
``SEC. 802. DEFINITIONS.
``In this title:
``(1) Appropriate congressional committees.--The term
`appropriate congressional committees' means the Committee on
Finance of the Senate and the Committee on Ways and Means of
the House of Representatives.
``(2) Country of export.--The term `country of export'
means the country (including any political subdivision of the
country) from which softwood lumber or a softwood lumber
product is exported before entering the United States.
``(3) Customs laws of the united states.--The term `customs
laws of the United States' means any law or regulation
enforced or administered by U.S. Customs and Border
Protection.
``(4) Export charges.--The term `export charges' means any
tax, charge, or other fee collected by the country from which
softwood lumber or a softwood lumber product, described in
section 804(a), is exported pursuant to an international
agreement entered into by that country and the United States.
``(5) Export price.--
``(A) In general.--The term `export price' means one of the
following:
``(i) In the case of softwood lumber or a softwood lumber
product that has undergone only primary processing, the value
that would be determined F.O.B. at the facility where the
product underwent the last primary processing before export.
``(ii)(I) In the case of softwood lumber or a softwood
lumber product described in subclause (II), the value that
would be determined F.O.B. at the facility where the lumber
or product underwent the last primary processing.
``(II) Softwood lumber or a softwood lumber product
described in this subclause is lumber or a product that
underwent the last remanufacturing before export by a
manufacturer who--
``(aa) does not hold tenure rights provided by the country
of export;
``(bb) did not acquire standing timber directly from the
country of export; and
``(cc) is not related to the person who holds tenure rights
or acquired standing timber directly from the country of
export.
``(iii)(I) In the case of softwood lumber or a softwood
lumber product described in subclause (II), the value that
would be determined F.O.B. at the facility where the product
underwent the last processing before export.
``(II) Softwood lumber or a softwood lumber product
described in this subclause is lumber or a product that
undergoes the last remanufacturing before export by a
manufacturer who--
``(aa) holds tenure rights provided by the country of
export;
``(bb) acquired standing timber directly from the country
of export; or
``(cc) is related to a person who holds tenure rights or
acquired standing timber directly from the country of export.
``(B) Related persons.--For purposes of this paragraph, a
person is related to another person if--
``(i) the person bears a relationship to such other person
described in section 152(a) of the Internal Revenue Code of
1986;
``(ii) the person bears a relationship to such other person
described in section 267(b) of such Code, except that `5
percent' shall be substituted for `50 percent' each place it
appears;
``(iii) the person and such other person are part of a
controlled group of corporations, as that term is defined in
section 1563(a) of such Code, except that `5 percent' shall
be substituted for `80 percent' each place it appears;
``(iv) the person is an officer or director of such other
person; or
``(v) the person is the employer of such other person.
``(C) Tenure rights.--For purposes of this paragraph, the
term `tenure rights' means rights to harvest timber from
public land granted by the country of export.
``(D) Export price where f.o.b. value cannot be
determined.--
``(i) In general.--In the case of softwood lumber or a
softwood lumber product described in clause (i), (ii), or
(iii) of subparagraph (A) for which an F.O.B. value cannot be
determined, the export price shall be the market price for
the identical lumber or product sold in an arm's-length
transaction in the country of export at approximately the
same time as the exported lumber or product. The market price
shall be determined in the following order of preference:
``(I) The market price for the lumber or a product sold at
substantially the same level of trade as the exported lumber
or product but in different quantities.
``(II) The market price for the lumber or a product sold at
a different level of trade than the exported lumber or
product but in similar quantities.
``(III) The market price for the lumber or a product sold
at a different level of trade than the exported lumber or
product and in different quantities.
``(ii) Level of trade.--For purposes of clause (i), `level
of trade' shall be determined in the same manner as provided
under section 351.412(c) of title 19, Code of Federal
Regulations (as in effect on January 1, 2008).
``(6) F.O.B.--The term `F.O.B.' means a value consisting of
all charges payable by a purchaser, including those charges
incurred in the placement of merchandise on board of a
conveyance for shipment, but does not include the actual
shipping charges or any applicable export charges.
``(7) HTS.--The term `HTS' means the Harmonized Tariff
Schedule of the United States (19 U.S.C. 1202) (as in effect
on January 1, 2008).
``(8) Person.--The term `person' includes any individual,
partnership, corporation, association, organization, business
trust, government entity, or other entity subject to the
jurisdiction of the United States.
``(9) United states.--The term `United States' means the
customs territory of the United States, as defined in General
Note 2 of the HTS.
``SEC. 803. ESTABLISHMENT OF SOFTWOOD LUMBER IMPORTER
DECLARATION PROGRAM.
``(a) Establishment of Program.--
``(1) In general.--The President shall establish and
maintain an importer declaration program with respect to the
importation of softwood lumber and softwood lumber products
described in section 804(a). The importer declaration program
shall require importers of softwood lumber and softwood
lumber products described in section 804(a) to provide the
information required under subsection (b) and declare the
information required by subsection (c), and require that such
information accompany the entry summary documentation.
``(2) Electronic record.--The President shall establish an
electronic record that includes the importer information
required under subsection (b) and the declarations required
under subsection (c).
``(b) Required Information.--The President shall require
the following information to be submitted by any person
seeking to import softwood lumber or softwood lumber products
described in section 804(a):
``(1) The export price for each shipment of softwood lumber
or softwood lumber products.
``(2) The estimated export charge, if any, applicable to
each shipment of softwood lumber or softwood lumber products
as calculated by applying the percentage determined and
published by the Under Secretary for International Trade of
the Department of Commerce pursuant to section 805 to the
export price provided in subsection (b)(1).
``(c) Importer Declarations.--Pursuant to procedures
prescribed by the President, any person seeking to import
softwood lumber or softwood lumber products described in
section 804(a) shall declare that--
``(1) the person has made appropriate inquiry, including
seeking appropriate documentation from the exporter and
consulting the determinations published by the Under
Secretary for International Trade of the Department of
Commerce pursuant to section 805(b); and
``(2) to the best of the person's knowledge and belief--
``(A) the export price provided pursuant to subsection
(b)(1) is determined in accordance with the definition
provided in section 802(5);
``(B) the export price provided pursuant to subsection
(b)(1) is consistent with the export price provided on the
export permit, if any, granted by the country of export; and
``(C) the exporter has paid, or committed to pay, all
export charges due--
``(i) in accordance with the volume, export price, and
export charge rate or rates, if any, as calculated under an
international agreement entered into by the country of export
and the United States; and
``(ii) consistent with the export charge determinations
published by the Under Secretary for International Trade
pursuant to section 805(b).
``SEC. 804. SCOPE OF SOFTWOOD LUMBER IMPORTER DECLARATION
PROGRAM.
``(a) Products Included in Program.--The following products
shall be subject to the importer declaration program
established under section 803:
``(1) In general.--All softwood lumber and softwood lumber
products classified under subheading 4407.10.00, 4409.10.10,
4409.10.20, or 4409.10.90 of the HTS, including the following
softwood lumber, flooring, and siding:
``(A) Coniferous wood, sawn or chipped lengthwise, sliced
or peeled, whether or not
[[Page H4525]]
planed, sanded, or finger-jointed, of a thickness exceeding 6
millimeters.
``(B) Coniferous wood siding (including strips and friezes
for parquet flooring, not assembled) continuously shaped
(tongued, grooved, rabbeted, chamfered, v-jointed, beaded,
molded, rounded, or the like) along any of its edges or
faces, whether or not planed, sanded, or finger-jointed.
``(C) Other coniferous wood (including strips and friezes
for parquet flooring, not assembled) continuously shaped
(tongued, grooved, rabbeted, chamfered, v-jointed, beaded,
molded, rounded, or the like) along any of its edges or faces
(other than wood moldings and wood dowel rods) whether or not
planed, sanded, or finger-jointed.
``(D) Coniferous wood flooring (including strips and
friezes for parquet flooring, not assembled) continuously
shaped (tongued, grooved, rabbeted, chamfered, v-jointed,
beaded, molded, rounded, or the like) along any of its edges
or faces, whether or not planed, sanded, or finger-jointed.
``(E) Coniferous drilled and notched lumber and angle cut
lumber.
``(2) Products continually shaped.--Any product classified
under subheading 4409.10.05 of the HTS that is continually
shaped along its end or side edges.
``(3) Other lumber products.--Except as otherwise provided
in subsection (b) or (c), softwood lumber products that are
stringers, radius-cut box-spring frame components, fence
pickets, truss components, pallet components, and door and
window frame parts classified under subheading 4418.90.46.95,
4421.90.70.40, or 4421.90.97.40 of the HTS.
``(b) Products Excluded From Program.--The following
products shall be excluded from the importer declaration
program established under section 803:
``(1) Trusses and truss kits, properly classified under
subheading 4418.90 of the HTS.
``(2) I-joist beams.
``(3) Assembled box-spring frames.
``(4) Pallets and pallet kits, properly classified under
subheading 4415.20 of HTS.
``(5) Garage doors.
``(6) Edge-glued wood, properly classified under subheading
4421.90.97.40 of the HTS.
``(7) Complete door frames.
``(8) Complete window frames.
``(9) Furniture.
``(10) Articles brought into the United States temporarily
and for which an exemption from duty is claimed under
subchapter XIII of chapter 98 of the HTS.
``(11) Household and personal effects.
``(c) Exceptions for Certain Products.--The following
softwood lumber products shall not be subject to the importer
declaration program established under section 803:
``(1) Stringers.--Stringers (pallet components used for
runners), if the stringers--
``(A) have at least 2 notches on the side, positioned at
equal distance from the center, to properly accommodate
forklift blades; and
``(B) are properly classified under subheading
4421.90.97.40 of the HTS.
``(2) Box-spring frame kits.--
``(A) In general.--Box-spring frame kits, if--
``(i) the kits contain--
``(I) 2 wooden side rails;
``(II) 2 wooden end (or top) rails; and
``(III) varying numbers of wooden slats; and
``(ii) the side rails and the end rails are radius-cut at
both ends.
``(B) Packaging.--Any kit described in subparagraph (A)
shall be individually packaged, and contain the exact number
of wooden components needed to make the box-spring frame
described on the entry documents, with no further processing
required. None of the components contained in the package may
exceed 1 inch in actual thickness or 83 inches in length.
``(3) Radius-cut box-spring frame components.--Radius-cut
box-spring frame components, not exceeding 1 inch in actual
thickness or 83 inches in length, ready for assembly without
further processing, if radius cuts are present on both ends
of the boards and are substantial cuts so as to completely
round 1 corner.
``(4) Fence pickets.--Fence pickets requiring no further
processing and properly classified under subheading
4421.90.70 of the HTS, 1 inch or less in actual thickness, up
to 8 inches wide, and 6 feet or less in length, and having
finials or decorative cuttings that clearly identify them as
fence pickets. In the case of dog-eared fence pickets, the
corners of the boards shall be cut off so as to remove pieces
of wood in the shape of isosceles right angle triangles with
sides measuring \3/4\ of an inch or more.
``(5) United states-origin lumber.--Lumber originating in
the United States that is exported to another country for
minor processing and imported into the United States if--
``(A) the processing occurring in another country is
limited to kiln drying, planing to create smooth-to-size
board, and sanding; and
``(B) the importer establishes to the satisfaction of U.S.
Customs and Border Protection upon entry that the lumber
originated in the United States.
``(6) Softwood lumber.--Any softwood lumber or softwood
lumber product that originated in the United States, if the
importer, exporter, foreign processor, or original United
States producer establishes to the satisfaction of U.S.
Customs and Border Protection upon entry that the softwood
lumber entered and documented as originating in the United
States was first produced in the United States.
``(7) Home packages or kits.--
``(A) In general.--Softwood lumber or softwood lumber
products contained in a single family home package or kit,
regardless of the classification under the HTS, if the
importer declares that the following requirements have been
met:
``(i) The package or kit constitutes a full package of the
number of wooden pieces specified in the plan, design, or
blueprint necessary to produce a home of at least 700 square
feet produced to a specified plan, design, or blueprint.
``(ii) The package or kit contains--
``(I) all necessary internal and external doors and
windows, nails, screws, glue, subfloor, sheathing, beams,
posts, and connectors; and
``(II) if included in the purchase contract, the decking,
trim, drywall, and roof shingles specified in the plan,
design, or blueprint.
``(iii) Prior to importation, the package or kit is sold to
a United States retailer that sells complete home packages or
kits pursuant to a valid purchase contract referencing the
particular home design, plan, or blueprint, and the contract
is signed by a customer not affiliated with the importer.
``(iv) Softwood lumber products entered as part of the
package or kit, whether in a single entry or multiple entries
on multiple days, are to be used solely for the construction
of the single family home specified by the home design, plan,
or blueprint matching the U.S. Customs and Border Protection
import entry.
``(B) Additional documentation required for home packages
and kits.--In the case of each entry of products described in
clauses (i) through (iv) of subparagraph (A) the following
documentation shall be retained by the importer and made
available to U.S. Customs and Border Protection upon request:
``(i) A copy of the appropriate home design, plan, or
blueprint matching the customs entry in the United States.
``(ii) A purchase contract from a retailer of home kits or
packages signed by a customer not affiliated with the
importer.
``(iii) A listing of all parts in the package or kit being
entered into the United States that conforms to the home
design, plan, or blueprint for which such parts are being
imported.
``(iv) If a single contract involves multiple entries, an
identification of all the items required to be listed under
clause (iii) that are included in each individual shipment.
``(d) Products Covered.--For purposes of determining if a
product is covered by the importer declaration program, the
President shall be guided by the article descriptions
provided in this section.
``SEC. 805. EXPORT CHARGE DETERMINATION AND PUBLICATION.
``(a) Determination.--The Under Secretary for International
Trade of the Department of Commerce shall determine, on a
monthly basis, any export charges (expressed as a percentage
of export price) to be collected by a country of export from
exporters of softwood lumber or softwood lumber products
described in section 804(a) in order to ensure compliance
with any international agreement entered into by that country
and the United States.
``(b) Publication.--The Under Secretary for International
Trade shall immediately publish any determination made under
subsection (a) on the website of the International Trade
Administration of the Department of Commerce, and in any
other manner the Under Secretary considers appropriate.
``SEC. 806. RECONCILIATION.
``The Secretary of the Treasury shall conduct
reconciliations to ensure the proper implementation and
operation of international agreements entered into between a
country of export of softwood lumber or softwood lumber
products described in section 804(a) and the United States.
The Secretary of Treasury shall reconcile the following:
``(1) The export price declared by a United States importer
pursuant to section 803(b)(1) with the export price reported
to the United States by the country of export, if any.
``(2) The export price declared by a United States importer
pursuant to section 803(b)(1) with the revised export price
reported to the United States by the country of export, if
any.
``SEC. 807. VERIFICATION.
``(a) In General.--The Secretary of Treasury shall
periodically verify the declarations made by a United States
importer pursuant to section 803(c), including by determining
whether--
``(1) the export price declared by a United States importer
pursuant to section 803(b)(1) is the same as the export price
provided on the export permit, if any, issued by the country
of export; and
``(2) the estimated export charge declared by a United
States importer pursuant to section 803(b)(2) is consistent
with the determination published by the Under Secretary for
International Trade pursuant to section 805(b).
``(b) Examination of Books and Records.--
``(1) In general.--Any record relating to the importer
declaration program required under section 803 shall be
treated as a record required to be maintained and produced
under title V of this Act.
``(2) Examination of records.--The Secretary of the
Treasury is authorized to take such action, and examine such
records, under section 509 of this Act, as the Secretary
determines necessary to verify the declarations
[[Page H4526]]
made pursuant to section 803(c) are true and accurate.
``SEC. 808. PENALTIES.
``(a) In General.--It shall be unlawful for any person to
import into the United States softwood lumber or softwood
lumber products in knowing violation of this title.
``(b) Civil Penalties.--Any person who commits an unlawful
act as set forth in subsection (a) shall be liable for a
civil penalty not to exceed $10,000 for each knowing
violation.
``(c) Other Penalties.--In addition to the penalties
provided for in subsection (b), any violation of this title
that violates any other customs law of the United States
shall be subject to any applicable civil and criminal
penalty, including seizure and forfeiture, that may be
imposed under such custom law or title 18, United States
Code, with respect to the importation of softwood lumber and
softwood lumber products described in section 804(a).
``(d) Factors To Consider in Assessing Penalties.--In
determining the amount of civil penalties to be assessed
under this section, consideration shall be given to any
history of prior violations of this title by the person, the
ability of the person to pay the penalty, the seriousness of
the violation, and such other matters as fairness may
require.
``(e) Notice.--No penalty may be assessed under this
section against a person for violating a provision of this
title unless the person is given notice and opportunity to
make statements, both oral and written, with respect to such
violation.
``(f) Exception.--Notwithstanding any other provision of
this title, and without limitation, an importer shall not be
found to have violated subsection 803(c) if--
``(1) the importer made an appropriate inquiry in
accordance with section 803(c)(1) with respect to the
declaration;
``(2) the importer produces records maintained pursuant to
section 807(b) that substantiate the declaration; and
``(3) there is not substantial evidence indicating that the
importer knew that the fact to which the importer made the
declaration was false.
``SEC. 809. REPORTS.
``(a) Semiannual Reports.--Not later than 180 days after
the effective date of this title, and every 180 days
thereafter, the President shall submit to the appropriate
congressional committees a report--
``(1) describing the reconciliations conducted under
section 806, and the verifications conducted under section
807;
``(2) identifying the manner in which the United States
importers subject to reconciliations conducted under section
806 and verifications conducted under section 807 were
chosen;
``(3) identifying any penalties imposed under section 808;
``(4) identifying any patterns of noncompliance with this
title; and
``(5) identifying any problems or obstacles encountered in
the implementation and enforcement of this title.
``(b) Subsidies Reports.--Not later than 180 days after the
date of the enactment of this title, and every 180 days
thereafter, the Secretary of Commerce shall provide to the
appropriate congressional committees a report on any
subsidies on softwood lumber or softwood lumber products,
including stumpage subsidies, provided by countries of
export.
``(c) GAO Reports.--The Comptroller General of the United
States shall submit the following reports to the appropriate
congressional committees:
``(1) Not later than 18 months after the date of the
enactment of this title, a report on the effectiveness of the
reconciliations conducted under section 806, and
verifications conducted under section 807.
``(2) Not later than 12 months after the date of the
enactment of this title, a report on whether countries that
export softwood lumber or softwood lumber products to the
United States are complying with any international agreements
entered into by those countries and the United States.''.
(b) Effective Date.--The amendments made by this section
shall take effect on the date that is 60 days after the date
of the enactment of this Act.
TITLE IV--NUTRITION
Subtitle A--Food Stamp Program
PART I--RENAMING OF FOOD STAMP ACT AND PROGRAM
SEC. 4001. RENAMING OF FOOD STAMP ACT AND PROGRAM.
(a) Short Title.--The first section of the Food Stamp Act
of 1977 (7 U.S.C. 2011 note; Public Law 88-525) is amended by
striking ``Food Stamp Act of 1977'' and inserting ``Food and
Nutrition Act of 2008''.
(b) Program.--The Food and Nutrition Act of 2008 (7 U.S.C.
2011 et seq.) (as amended by subsection (a)) is amended by
striking ``FOOD STAMP PROGRAM'' each place it appears and
inserting ``SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM''.
SEC. 4002. CONFORMING AMENDMENTS.
(a) In General.--
(1) Section 4 of the Food and Nutrition Act of 2008 (7
U.S.C. 2013) is amended in the section heading by striking
``FOOD STAMP PROGRAM'' and inserting ``SUPPLEMENTAL NUTRITION
ASSISTANCE PROGRAM''.
(2) Section 5(h)(2)(A) of the Food and Nutrition Act of
2008 (7 U.S.C. 2014(h)(2)(A)) is amended by striking ``Food
Stamp Disaster Task Force'' and inserting ``Disaster Task
Force''.
(3) Section 6 of the Food and Nutrition Act of 2008 (7
U.S.C. 2015) is amended--
(A) in subsection (d)(3), by striking ``for food stamps'';
(B) in subsection (j), in the subsection heading, by
striking ``Food Stamp''; and
(C) in subsection (o)--
(i) in paragraph (2), by striking ``food stamp benefits''
and inserting ``supplemental nutrition assistance program
benefits''; and
(ii) in paragraph (6)--
(I) in subparagraph (A)--
(aa) in clause (i), by striking ``food stamps'' and
inserting ``supplemental nutrition assistance program
benefits''; and
(bb) in clause (ii)--
(AA) in the matter preceding subclause (I), by striking ``a
food stamp recipient'' and inserting ``a member of a
household that receives supplemental nutrition assistance
program benefits''; and
(BB) by striking ``food stamp benefits'' each place it
appears and inserting ``supplemental nutrition assistance
program benefits''; and
(II) in subparagraphs (D) and (E), by striking ``food stamp
recipients'' each place it appears and inserting ``members of
households that receive supplemental nutrition assistance
program benefits''.
(4) Section 7 of the Food and Nutrition Act of 2008 (7
U.S.C. 2016) is amended--
(A) in subsection (i)--
(i) in paragraph (3)(B)(ii), by striking ``food stamp
households'' and inserting ``households receiving
supplemental nutrition assistance program benefits''; and
(ii) in paragraph (7), by striking ``food stamp issuance''
and inserting ``supplemental nutrition assistance issuance'';
and
(B) in subsection (k)--
(i) in paragraph (2), by striking ``food stamp benefits''
and inserting ``supplemental nutrition assistance program
benefits''; and
(ii) in paragraph (3), by striking ``food stamp retail''
and inserting ``retail''.
(5) Section 9(b)(1) of that Food and Nutrition Act of 2008
(7 U.S.C. 2018(b)(1)) is amended by striking ``food stamp
households'' and inserting ``households that receive
supplemental nutrition assistance program benefits''.
(6) Section 11 of the Food and Nutrition Act of 2008 (7
U.S.C. 2020) is amended--
(A) in subsection (e)--
(i) by striking ``food stamps'' each place it appears and
inserting ``supplemental nutrition assistance program
benefits'';
(ii) by striking ``food stamp offices'' each place it
appears and inserting ``supplemental nutrition assistance
program offices'';
(iii) by striking ``food stamp office'' each place it
appears and inserting ``supplemental nutrition assistance
program office''; and
(iv) in paragraph (25)--
(I) in the matter preceding subparagraph (A), by striking
``Simplified Food Stamp Program'' and inserting ``Simplified
Supplemental Nutrition Assistance Program''; and
(II) in subparagraph (A), by striking ``food stamp
benefits'' and inserting ``supplemental nutrition assistance
program benefits'';
(B) in subsection (k), by striking ``may issue, upon
request by the State agency, food stamps'' and inserting
``may provide, on request by the State agency, supplemental
nutrition assistance program benefits'';
(C) in subsection (l), by striking ``food stamp
participation'' and inserting ``supplemental nutrition
assistance program participation'';
(D) in subsections (q) and (r), in the subsection headings,
by striking ``Food Stamps'' each place it appears and
inserting ``Benefits'';
(E) in subsection (s), by striking ``food stamp benefits''
each place it appears and inserting ``supplemental nutrition
assistance program benefits''; and
(F) in subsection (t)(1)--
(i) in subparagraph (A), by striking ``food stamp
application'' and inserting ``supplemental nutrition
assistance program application''; and
(ii) in subparagraph (B), by striking ``food stamp
benefits'' and inserting ``supplemental nutrition assistance
program benefits''.
(7) Section 14(b) of the Food and Nutrition Act of 2008 (7
U.S.C. 2023(b)) is amended by striking ``food stamp''.
(8) Section 16 of the Food and Nutrition Act of 2008 (7
U.S.C. 2025) is amended--
(A) in subsection (a)(4), by striking ``food stamp
informational activities'' and inserting ``informational
activities relating to the supplemental nutrition assistance
program'';
(B) in subsection (c)(9)(C), by striking ``food stamp
caseload'' and inserting ``the caseload under the
supplemental nutrition assistance program''; and
(C) in subsection (h)(1)(E)(i), by striking ``food stamp
recipients'' and inserting ``members of households receiving
supplemental nutrition assistance program benefits''.
(9) Section 17 of the Food and Nutrition Act of 2008 (7
U.S.C. 2026) is amended--
(A) in subsection (a)(2), by striking ``food stamp
benefits'' each place it appears and inserting ``supplemental
nutrition assistance program benefits'';
(B) in subsection (b)--
(i) in paragraph (1)--
(I) in subparagraph (A), by striking ``food stamp
benefits'' and inserting ``supplemental nutrition assistance
program benefits''; and
(II) in subparagraph (B)--
(aa) in clause (ii)(II), by striking ``food stamp
recipients'' and inserting ``supplemental nutrition
assistance program recipients'';
[[Page H4527]]
(bb) in clause (iii)(I), by striking ``the State's food
stamp households'' and inserting ``the number of households
in the State receiving supplemental nutrition assistance
program benefits''; and
(cc) in clause (iv)(IV)(bb), by striking ``food stamp
deductions'' and inserting ``supplemental nutrition
assistance program deductions'';
(ii) in paragraph (2), by striking ``food stamp benefits''
and inserting ``supplemental nutrition assistance program
benefits''; and
(iii) in paragraph (3)--
(I) in subparagraph (A), by striking ``food stamp
employment'' and inserting ``supplemental nutrition
assistance program employment'';
(II) in subparagraph (B), by striking ``food stamp
recipients'' and inserting ``supplemental nutrition
assistance program recipients'';
(III) in subparagraph (C), by striking ``food stamps'' and
inserting ``supplemental nutrition assistance program
benefits''; and
(IV) in subparagraph (D), by striking ``food stamp
benefits'' and inserting ``supplemental nutrition assistance
program benefits'';
(C) in subsection (c), by striking ``food stamps'' and
inserting ``supplemental nutrition assistance'';
(D) in subsection (d)--
(i) in paragraph (1)(B), by striking ``food stamp
benefits'' and inserting ``supplemental nutrition assistance
program benefits'';
(ii) in paragraph (2)--
(I) in subparagraph (A), by striking ``food stamp
allotments'' each place it appears and inserting
``allotments''; and
(II) in subparagraph (C)(ii), by striking ``food stamp
benefit'' and inserting ``supplemental nutrition assistance
program benefits''; and
(iii) in paragraph (3)(E), by striking ``food stamp
benefits'' and inserting ``supplemental nutrition assistance
program benefits'';
(E) in subsections (e) and (f), by striking ``food stamp
benefits'' each place it appears and inserting ``supplemental
nutrition assistance program benefits'';
(F) in subsection (g), in the first sentence, by striking
``receipt of food stamp'' and inserting ``receipt of
supplemental nutrition assistance program''; and
(G) in subsection (j), by striking ``food stamp agencies''
and inserting ``supplemental nutrition assistance program
agencies''.
(10) Section 18(a)(3)(A)(ii) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2027(a)(3)(A)(ii)) is amended by striking
``food stamps'' and inserting ``supplemental nutrition
assistance program benefits''.
(11) Section 22 of the Food and Nutrition Act of 2008 (7
U.S.C. 2031) is amended--
(A) in the section heading, by striking ``FOOD STAMP
PORTION OF MINNESOTA FAMILY INVESTMENT PLAN'' and inserting
``MINNESOTA FAMILY INVESTMENT PROJECT'';
(B) in subsections (b)(12) and (d)(3), by striking ``the
Food Stamp Act, as amended,'' each place it appears and
inserting ``this Act''; and
(C) in subsection (g)(1), by striking ``the Food Stamp Act
of 1977 (7 U.S.C. 2011 et seq.)'' and inserting ``this Act''.
(12) Section 26 of the Food and Nutrition Act of 2008 (7
U.S.C. 2035) is amended--
(A) in the section heading, by striking ``SIMPLIFIED FOOD
STAMP PROGRAM'' and inserting ``SIMPLIFIED SUPPLEMENTAL
NUTRITION ASSISTANCE PROGRAM''; and
(B) in subsection (b), by striking ``simplified food stamp
program'' and inserting ``simplified supplemental nutrition
assistance program''.
(b) Conforming Cross-References.--
(1) In general.--Each provision of law described in
paragraph (2) is amended (as applicable)--
(A) by striking ``food stamp program'' each place it
appears and inserting ``supplemental nutrition assistance
program'';
(B) by striking ``Food Stamp Act of 1977'' each place it
appears and inserting ``Food and Nutrition Act of 2008'';
(C) by striking ``Food Stamp Act'' each place it appears
and inserting ``Food and Nutrition Act of 2008'';
(D) by striking ``food stamp'' each place it appears and
inserting ``supplemental nutrition assistance program
benefits'';
(E) by striking ``food stamps'' each place it appears and
inserting ``supplemental nutrition assistance program
benefits'';
(F) in each applicable title, subtitle, chapter,
subchapter, and section heading, by striking ``FOOD STAMP
ACT'' each place it appears and inserting ``FOOD AND
NUTRITION ACT OF 2008'';
(G) in each applicable subsection and appropriations
heading, by striking ``Food Stamp Act'' each place it appears
and inserting ``Food and Nutrition Act of 2008'';
(H) in each applicable heading other than a title,
subtitle, chapter, subchapter, section, subsection, or
appropriations heading, by striking ``FOOD STAMP ACT'' each
place it appears and inserting ``FOOD AND NUTRITION ACT OF
2008'';
(I) in each applicable title, subtitle, chapter,
subchapter, and section heading, by striking ``FOOD STAMP
PROGRAM'' each place it appears and inserting ``SUPPLEMENTAL
NUTRITION ASSISTANCE PROGRAM'';
(J) in each applicable subsection and appropriations
heading, by striking ``Food Stamp Program'' each place it
appears and inserting ``Supplemental Nutrition Assistance
Program'';
(K) in each applicable heading other than a title,
subtitle, chapter, subchapter, section, subsection, or
appropriations heading, by striking ``FOOD STAMP PROGRAM''
each place it appears and inserting ``SUPPLEMENTAL NUTRITION
ASSISTANCE PROGRAM'';
(L) in each applicable title, subtitle, chapter,
subchapter, and section heading, by striking ``FOOD STAMPS''
each place it appears and inserting ``SUPPLEMENTAL NUTRITION
ASSISTANCE PROGRAM BENEFITS'';
(M) in each applicable subsection and appropriations
heading, by striking ``Food Stamps'' each place it appears
and inserting ``Supplemental Nutrition Assistance Program
Benefits''; and
(N) in each applicable heading other than a title,
subtitle, chapter, subchapter, section, subsection, or
appropriations heading, by striking ``FOOD STAMPS'' each
place it appears and inserting ``SUPPLEMENTAL NUTRITION
ASSISTANCE PROGRAM BENEFITS''.
(2) Provisions of law.--The provisions of law referred to
in paragraph (1) are the following:
(A) The Hunger Prevention Act of 1988 (Public Law 100-435;
102 Stat. 1645).
(B) The Food Stamp Program Improvements Act of 1994 (Public
Law 103-225; 108 Stat. 106).
(C) Title IV of the Farm Security and Rural Investment Act
of 2002 (Public Law 107-171; 116 Stat. 305).
(D) Section 2 of Public Law 103-205 (7 U.S.C. 2012 note).
(E) Section 807(b) of the Stewart B. McKinney Homeless
Assistance Act (7 U.S.C. 2014 note; Public Law 100-77).
(F) The Electronic Benefit Transfer Interoperability and
Portability Act of 2000 (Public Law 106-171; 114 Stat. 3).
(G) Section 502(b) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 2025 note; Public
Law 105-185).
(H) The National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.).
(I) The Emergency Food Assistance Act of 1983 (7 U.S.C.
7501 et seq.).
(J) The Immigration and Nationality Act (8 U.S.C. 1101 et
seq.).
(K) Section 8119 of the Department of Defense
Appropriations Act, 1999 (10 U.S.C. 113 note; Public Law 105-
262).
(L) The Armored Car Industry Reciprocity Act of 1993 (15
U.S.C. 5901 et seq.).
(M) Title 18, United States Code.
(N) The Higher Education Act of 1965 (20 U.S.C. 1001 et
seq.).
(O) The Internal Revenue Code of 1986.
(P) Section 650 of the Treasury and General Government
Appropriations Act, 2000 (26 U.S.C. 7801 note; Public Law
106-58).
(Q) The Wagner-Peysner Act (29 U.S.C. 49 et seq.).
(R) The Workforce Investment Act of 1998 (29 U.S.C. 2801 et
seq.).
(S) Title 31, United States Code.
(T) Title 37, United States Code.
(U) The Public Health Service Act (42 U.S.C. 201 et seq.).
(V) Titles II through XIX of the Social Security Act (42
U.S.C. 401 et seq.).
(W) Section 406 of the Family Support Act of 1988 (Public
Law 100-485; 102 Stat. 2400).
(X) Section 232 of the Social Security Act Amendments of
1994 (42 U.S.C. 1314a).
(Y) The United States Housing Act of 1937 (42 U.S.C. 1437
et seq.).
(Z) The Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.).
(AA) The Child Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.).
(BB) The Older Americans Act of 1965 (42 U.S.C. 3001 et
seq.).
(CC) Section 208 of the Intergovernmental Personnel Act of
1970 (42 U.S.C. 4728).
(DD) The Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.).
(EE) The Low-Income Home Energy Assistance Act of 1981 (42
U.S.C. 8621 et seq.).
(FF) Section 658K of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858i).
(GG) The Alaska Native Claims Settlement Act (43 U.S.C.
1601 et seq.).
(HH) Public Law 95-348 (92 Stat. 487).
(II) The Agriculture and Food Act of 1981 (Public Law 97-
98; 95 Stat. 1213).
(JJ) The Disaster Assistance Act of 1988 (Public Law 100-
387; 102 Stat. 924).
(KK) The Food, Agriculture, Conservation, and Trade Act of
1990 (Public Law 101-624; 104 Stat. 3359).
(LL) The Cranston-Gonzalez National Affordable Housing Act
(Public Law 101-625; 104 Stat. 4079).
(MM) Section 388 of the Persian Gulf Conflict Supplemental
Authorization and Personnel Benefits Act of 1991 (Public Law
102-25; 105 Stat. 98).
(NN) The Food, Agriculture, Conservation, and Trade Act
Amendments of 1991 (Public Law 102-237; 105 Stat. 1818).
(OO) The Act of March 26, 1992 (Public Law 102-265; 106
Stat. 90).
(PP) Public Law 105-379 (112 Stat. 3399).
(QQ) Section 101(c) of the Emergency Supplemental Act, 2000
(Public Law 106-246; 114 Stat. 528).
(c) References.--Any reference in any Federal, State,
tribal, or local law (including regulations) to the ``food
stamp program'' established under the Food and Nutrition Act
of 2008 (7 U.S.C. 2011 et seq.) shall be considered to be a
reference to the ``supplemental
[[Page H4528]]
nutrition assistance program'' established under that Act.
PART II--BENEFIT IMPROVEMENTS
SEC. 4101. EXCLUSION OF CERTAIN MILITARY PAYMENTS FROM
INCOME.
Section 5(d) of the Food and Nutrition Act of 2008 (7
U.S.C. 2014(d)) is amended--
(1) by striking ``(d) Household'' and inserting ``(d)
Exclusions From Income.--Household'';
(2) by striking ``only (1) any'' and inserting ``only--
``(1) any'';
(3) by indenting each of paragraphs (2) through (18) so as
to align with the margin of paragraph (1) (as amended by
paragraph (2));
(4) by striking the comma at the end of each of paragraphs
(1) through (16) and inserting a semicolon;
(5) in paragraph (3)--
(A) by striking ``like (A) awarded'' and inserting ``like--
``(A) awarded'';
(B) by striking ``thereof, (B) to'' and inserting
``thereof;
``(B) to''; and
(C) by striking ``program, and (C) to'' and inserting
``program; and
``(C) to'';
(6) in paragraph (11), by striking ``)), or (B) a'' and
inserting ``)); or
``(B) a'';
(7) in paragraph (17), by striking ``, and'' at the end and
inserting a semicolon;
(8) in paragraph (18), by striking the period at the end
and inserting ``; and''; and
(9) by adding at the end the following:
``(19) any additional payment under chapter 5 of title 37,
United States Code, or otherwise designated by the Secretary
to be appropriate for exclusion under this paragraph, that is
received by or from a member of the United States Armed
Forces deployed to a designated combat zone, if the
additional pay--
``(A) is the result of deployment to or service in a combat
zone; and
``(B) was not received immediately prior to serving in a
combat zone.''.
SEC. 4102. STRENGTHENING THE FOOD PURCHASING POWER OF LOW-
INCOME AMERICANS.
Section 5(e)(1) of the Food and Nutrition Act of 2008 (7
U.S.C. 2014(e)(1)) is amended--
(1) in subparagraph (A)(ii), by striking ``not less than
$134'' and all that follows through the end of the clause and
inserting the following: ``not less than--
``(I) for fiscal year 2009, $144, $246, $203, and $127,
respectively; and
``(II) for fiscal year 2010 and each fiscal year
thereafter, an amount that is equal to the amount from the
previous fiscal year adjusted to the nearest lower dollar
increment to reflect changes for the 12-month period ending
on the preceding June 30 in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics
of the Department of Labor, for items other than food.'';
(2) in subparagraph (B)(ii), by striking ``not less than
$269'' and all that follows through the end of the clause and
inserting the following: ``not less than--
``(I) for fiscal year 2009, $289; and
``(II) for fiscal year 2010 and each fiscal year
thereafter, an amount that is equal to the amount from the
previous fiscal year adjusted to the nearest lower dollar
increment to reflect changes for the 12-month period ending
on the preceding June 30 in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics
of the Department of Labor, for items other than food.''; and
(3) by adding at the end the following:
``(C) Requirement.--Each adjustment under subparagraphs
(A)(ii)(II) and (B)(ii)(II) shall be based on the unrounded
amount for the prior 12-month period.''.
SEC. 4103. SUPPORTING WORKING FAMILIES WITH CHILD CARE
EXPENSES.
Section 5(e)(3)(A) of the Food and Nutrition Act of 2008 (7
U.S.C. 2014(e)(3)(A)) is amended by striking ``, the maximum
allowable level of which shall be $200 per month for each
dependent child under 2 years of age and $175 per month for
each other dependent,''.
SEC. 4104. ASSET INDEXATION, EDUCATION, AND RETIREMENT
ACCOUNTS.
(a) Adjusting Countable Resources for Inflation.--Section
(5)(g) of the Food and Nutrition Act of 2008 (7 U.S.C.
2014(g)) is amended--
(1) by striking ``(g)(1) The Secretary'' and inserting the
following:
``(g) Allowable Financial Resources.--
``(1) Total amount.--
``(A) In general.--The Secretary''.
(2) in subparagraph (A) (as so designated by paragraph
(1))--
(A) by inserting ``(as adjusted in accordance with
subparagraph (B))'' after ``$2,000''; and
(B) by inserting ``(as adjusted in accordance with
subparagraph (B))'' after ``$3,000''; and
(3) by adding at the end the following:
``(B) Adjustment for inflation.--
``(i) In general.--Beginning on October 1, 2008, and each
October 1 thereafter, the amounts specified in subparagraph
(A) shall be adjusted and rounded down to the nearest $250
increment to reflect changes for the 12-month period ending
the preceding June in the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics of the
Department of Labor.
``(ii) Requirement.--Each adjustment under clause (i) shall
be based on the unrounded amount for the prior 12-month
period.''.
(b) Exclusion of Retirement Accounts From Allowable
Financial Resources.--
(1) In general.--Section 5(g)(2)(B)(v) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2014(g)(2)(B)(v)) is amended
by striking ``or retirement account (including an individual
account)'' and inserting ``account''.
(2) Mandatory and discretionary exclusions.--Section 5(g)
of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(g)) is
amended by adding at the end the following:
``(7) Exclusion of retirement accounts from allowable
financial resources.--
``(A) Mandatory exclusions.--The Secretary shall exclude
from financial resources under this subsection the value of--
``(i) any funds in a plan, contract, or account, described
in sections 401(a), 403(a), 403(b), 408, 408A, 457(b), and
501(c)(18) of the Internal Revenue Code of 1986 and the value
of funds in a Federal Thrift Savings Plan account as provided
in section 8439 of title 5, United States Code; and
``(ii) any retirement program or account included in any
successor or similar provision that may be enacted and
determined to be exempt from tax under the Internal Revenue
Code of 1986.
``(B) Discretionary exclusions.--The Secretary may exclude
from financial resources under this subsection the value of
any other retirement plans, contracts, or accounts (as
determined by the Secretary).''.
(c) Exclusion of Education Accounts From Allowable
Financial Resources.--Section 5(g) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2014(g)) (as amended by subsection (b))
is amended by adding at the end the following:
``(8) Exclusion of education accounts from allowable
financial resources.--
``(A) Mandatory exclusions.--The Secretary shall exclude
from financial resources under this subsection the value of
any funds in a qualified tuition program described in section
529 of the Internal Revenue Code of 1986 or in a Coverdell
education savings account under section 530 of that Code.
``(B) Discretionary exclusions.--The Secretary may exclude
from financial resources under this subsection the value of
any other education programs, contracts, or accounts (as
determined by the Secretary).''.
SEC. 4105. FACILITATING SIMPLIFIED REPORTING.
Section 6(c)(1)(A) of the Food and Nutrition Act of 2008 (7
U.S.C. 2015(c)(1)(A)) is amended--
(1) by striking ``reporting by'' and inserting
``reporting'';
(2) in clause (i), by inserting ``for periods shorter than
4 months by'' before ``migrant'';
(3) in clause (ii), by inserting ``for periods shorter than
4 months by'' before ``households''; and
(4) in clause (iii), by inserting ``for periods shorter
than 1 year by'' before ``households''.
SEC. 4106. TRANSITIONAL BENEFITS OPTION.
Section 11(s)(1) of the Food and Nutrition Act of 2008 (7
U.S.C. 2020(s)(1)) is amended--
(1) by striking ``benefits to a household''; and inserting
``benefits--
``(A) to a household'';
(2) by striking the period at the end and inserting ``;
or''; and
(3) by adding at the end the following:
``(B) at the option of the State, to a household with
children that ceases to receive cash assistance under a
State-funded public assistance program.''.
SEC. 4107. INCREASING THE MINIMUM BENEFIT.
Section 8(a) of the Food and Nutrition Act of 2008 (7
U.S.C. 2017(a)) is amended by striking ``$10 per month'' and
inserting ``8 percent of the cost of the thrifty food plan
for a household containing 1 member, as determined by the
Secretary under section 3, rounded to the nearest whole
dollar increment''.
SEC. 4108. EMPLOYMENT, TRAINING, AND JOB RETENTION.
Section 6(d)(4) of the Food and Nutrition Act of 2008 (7
U.S.C. 2015(d)(4)) is amended--
(1) in subparagraph (B)--
(A) by redesignating clause (vii) as clause (viii); and
(B) by inserting after clause (vi) the following:
``(vii) Programs intended to ensure job retention by
providing job retention services, if the job retention
services are provided for a period of not more than 90 days
after an individual who received employment and training
services under this paragraph gains employment.''; and
(2) in subparagraph (F), by adding at the end the
following:
``(iii) Any individual voluntarily electing to participate
in a program under this paragraph shall not be subject to the
limitations described in clauses (i) and (ii).''.
PART III--PROGRAM OPERATIONS
SEC. 4111. NUTRITION EDUCATION.
(a) Authority to Provide Nutrition Education.--Section 4(a)
of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)) is
amended in the first sentence by inserting ``and, through an
approved State plan, nutrition education'' after ``an
allotment''.
(b) Implementation.--Section 11 of the Food and Nutrition
Act of 2008 (7 U.S.C. 2020) is amended by striking subsection
(f) and inserting the following:
``(f) Nutrition Education.--
``(1) In general.--State agencies may implement a nutrition
education program for individuals eligible for program
benefits that promotes healthy food choices consistent with
the most recent Dietary Guidelines for
[[Page H4529]]
Americans published under section 301 of the National
Nutrition Monitoring and Related Research Act of 1990 (7
U.S.C. 5341).
``(2) Delivery of nutrition education.--State agencies may
deliver nutrition education directly to eligible persons or
through agreements with the National Institute of Food and
Agriculture, including through the expanded food and
nutrition education program under section 3(d) of the Act of
May 8, 1914 (7 U.S.C. 343(d)), and other State and community
health and nutrition providers and organizations.
``(3) Nutrition education state plans.--
``(A) In general.--A State agency that elects to provide
nutrition education under this subsection shall submit a
nutrition education State plan to the Secretary for approval.
``(B) Requirements.--The plan shall--
``(i) identify the uses of the funding for local projects;
and
``(ii) conform to standards established by the Secretary
through regulations or guidance.
``(C) Reimbursement.--State costs for providing nutrition
education under this subsection shall be reimbursed pursuant
to section 16(a).
``(4) Notification.--To the maximum extent practicable,
State agencies shall notify applicants, participants, and
eligible program participants of the availability of
nutrition education under this subsection.''.
SEC. 4112. TECHNICAL CLARIFICATION REGARDING ELIGIBILITY.
Section 6(k) of the Food and Nutrition Act of 2008 (7
U.S.C. 2015(k)) is amended--
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and indenting
appropriately;
(2) by striking ``No member'' and inserting the following:
``(1) In general.--No member''; and
(3) by adding at the end the following:
``(2) Procedures.--The Secretary shall--
``(A) define the terms `fleeing' and `actively seeking' for
purposes of this subsection; and
``(B) ensure that State agencies use consistent procedures
established by the Secretary that disqualify individuals whom
law enforcement authorities are actively seeking for the
purpose of holding criminal proceedings against the
individual.''.
SEC. 4113. CLARIFICATION OF SPLIT ISSUANCE.
Section 7(h) of the Food and Nutrition Act of 2008 (7
U.S.C. 2016(h)) is amended by striking paragraph (2) and
inserting the following:
``(2) Requirements.--
``(A) In general.--Any procedure established under
paragraph (1) shall--
``(i) not reduce the allotment of any household for any
period; and
``(ii) ensure that no household experiences an interval
between issuances of more than 40 days.
``(B) Multiple issuances.--The procedure may include
issuing benefits to a household in more than 1 issuance
during a month only when a benefit correction is
necessary.''.
SEC. 4114. ACCRUAL OF BENEFITS.
Section 7(i) of the Food and Nutrition Act of 2008 (7
U.S.C. 2016(i)) is amended by adding at the end the
following:
``(12) Recovering electronic benefits.--
``(A) In general.--A State agency shall establish a
procedure for recovering electronic benefits from the account
of a household due to inactivity.
``(B) Benefit storage.--A State agency may store recovered
electronic benefits off-line in accordance with subparagraph
(D), if the household has not accessed the account after 6
months.
``(C) Benefit expunging.--A State agency shall expunge
benefits that have not been accessed by a household after a
period of 12 months.
``(D) Notice.--A State agency shall--
``(i) send notice to a household the benefits of which are
stored under subparagraph (B); and
``(ii) not later than 48 hours after request by the
household, make the stored benefits available to the
household.''.
SEC. 4115. ISSUANCE AND USE OF PROGRAM BENEFITS.
(a) In General.--Section 7 of the Food and Nutrition Act of
2008 (7 U.S.C. 2016) is amended--
(1) by striking the section designation and heading and all
that follows through ``subsection (j)) shall be'' and
inserting the following:
``SEC. 7. ISSUANCE AND USE OF PROGRAM BENEFITS.
``(a) In General.--Except as provided in subsection (i),
EBT cards shall be'';
(2) in subsection (b)--
(A) by striking ``(b) Coupons'' and inserting the
following:
``(b) Use.--Benefits''; and
(B) by striking the second proviso;
(3) in subsection (c)--
(A) by striking ``(c) Coupons'' and inserting the
following:
``(c) Design.--
``(1) In general.--EBT cards'';
(B) in the first sentence, by striking ``and define their
denomination''; and
(C) by striking the second sentence and inserting the
following:
``(2) Prohibition.--The name of any public official shall
not appear on any EBT card.'';
(4) by striking subsection (d);
(5) in subsection (e)--
(A) by striking ``coupons'' each place it appears and
inserting ``benefits''; and
(B) by striking ``coupon issuers'' each place it appears
and inserting ``benefit issuers'';
(6) in subsection (f)--
(A) by striking ``coupons'' each place it appears and
inserting ``benefits'';
(B) by striking ``coupon issuer'' and inserting ``benefit
issuers'';
(C) by striking ``including any losses'' and all that
follows through ``section 11(e)(20),''; and
(D) by striking ``and allotments'';
(7) by striking subsection (g) and inserting the following:
``(g) Alternative Benefit Delivery.--
``(1) In general.--If the Secretary determines, in
consultation with the Inspector General of the Department of
Agriculture, that it would improve the integrity of the
supplemental nutrition assistance program, the Secretary
shall require a State agency to issue or deliver benefits
using alternative methods.
``(2) No imposition of costs.--The cost of documents or
systems that may be required by this subsection may not be
imposed upon a retail food store participating in the
supplemental nutrition assistance program.
``(3) Devaluation and termination of issuance of paper
coupons.--
``(A) Coupon issuance.--Effective on the date of enactment
of the Food, Conservation, and Energy Act of 2008, no State
shall issue any coupon, stamp, certificate, or authorization
card to a household that receives supplemental nutrition
assistance under this Act.
``(B) Ebt cards.--Effective beginning on the date that is 1
year after the date of enactment of the Food, Conservation,
and Energy Act of 2008, only an EBT card issued under
subsection (i) shall be eligible for exchange at any retail
food store.
``(C) De-obligation of coupons.--Coupons not redeemed
during the 1-year period beginning on the date of enactment
of the Food, Conservation, and Energy Act of 2008 shall--
``(i) no longer be an obligation of the Federal Government;
and
``(ii) not be redeemable.'';
(8) in subsection (h)(1), by striking ``coupons'' and
inserting ``benefits'';
(9) in subsection (i), by adding at the end the following:
``(12) Interchange fees.--No interchange fees shall apply
to electronic benefit transfer transactions under this
subsection.'';
(10) in subsection (j)--
(A) in paragraph (2)(A)(ii), by striking ``printing,
shipping, and redeeming coupons'' and inserting ``issuing and
redeeming benefits''; and
(B) in paragraph (5), by striking ``coupon'' and inserting
``benefit'';
(11) in subsection (k)--
(A) by striking ``coupons in the form of'' each place it
appears and inserting ``program benefits in the form of'';
(B) by striking ``a coupon issued in the form of'' each
place it appears and inserting ``program benefits in the form
of''; and
(C) in subparagraph (A), by striking ``subsection
(i)(11)(A)'' and inserting ``subsection (h)(11)(A)''; and
(12) by redesignating subsections (e) through (k) as
subsections (d) through (j), respectively.
(b) Conforming Amendments.--
(1) Section 3 of the Food and Nutrition Act of 2008 (7
U.S.C. 2012) is amended--
(A) in subsection (a), by striking ``coupons'' and
inserting ``benefits'';
(B) by striking subsection (b) and inserting the following:
``(b) Benefit.--The term `benefit' means the value of
supplemental nutrition assistance provided to a household by
means of--
``(1) an electronic benefit transfer under section 7(i); or
``(2) other means of providing assistance, as determined by
the Secretary.'';
(C) in subsection (c), in the first sentence, by striking
``authorization cards'' and inserting ``benefits'';
(D) in subsection (d), by striking ``or access device'' and
all that follows through the end of the subsection and
inserting a period;
(E) in subsection (e)--
(i) by striking ``(e) `Coupon issuer' means'' and inserting
the following:
``(e) Benefit Issuer.--The term `benefit issuer' means'';
and
(ii) by striking ``coupons'' and inserting ``benefits'';
(F) in subsection (g)(7), by striking ``subsection (r)''
and inserting ``subsection (j)'';
(G) in subsection (i)(5)--
(i) in subparagraph (B), by striking ``subsection (r)'' and
inserting ``subsection (j)''; and
(ii) in subparagraph (D), by striking ``coupons'' and
inserting ``benefits'';
(H) in subsection (j), by striking ``(as that term is
defined in subsection (p))'';
(I) in subsection (k)--
(i) in paragraph (1)(A), by striking ``subsection (u)(1)''
and inserting ``subsection (r)(1)'';
(ii) in paragraph (2), by striking ``subsections (g)(3),
(4), (5), (7), (8), and (9) of this section'' and inserting
``paragraphs (3), (4), (5), (7), (8), and (9) of subsection
(k)''; and
(iii) in paragraph (3), by striking ``subsection (g)(6) of
this section'' and inserting ``subsection (k)(6)'';
(J) in subsection (t), by inserting ``, including point of
sale devices,'' after ``other means of access'';
(K) in subsection (u), by striking ``(as defined in
subsection (g))'';
(L) by adding at the end the following:
``(v) EBT Card.--The term `EBT card' means an electronic
benefit transfer card issued under section 7(i).''; and
[[Page H4530]]
(M) by redesignating subsections (a) through (v) as
subsections (b), (d), (f), (g), (e), (h), (k), (l), (n), (o),
(p), (q), (s), (t), (u), (v), (c), (j), (m), (a), (r), and
(i), respectively, and moving the subsections so as to appear
in alphabetical order.
(2) Section 4(a) of the Food and Nutrition Act of 2008 (7
U.S.C. 2013(a)) is amended--
(A) by striking ``coupons'' each place it appears and
inserting ``benefits''; and
(B) by striking ``Coupons issued'' and inserting ``benefits
issued''.
(3) Section 5 of the Food and Nutrition Act of 2008 (7
U.S.C. 2014) is amended--
(A) in subsection (a), by striking ``section 3(i)(4)'' and
inserting ``section 3(n)(4)'';
(B) in subsection (h)(3)(B), in the second sentence, by
striking ``section 7(i)'' and inserting ``section 7(h)''; and
(C) in subsection (i)(2)(E), by striking ``, as defined in
section 3(i) of this Act,''.
(4) Section 6 of the Food and Nutrition Act of 2008 (7
U.S.C. 2015) is amended--
(A) in subsection (b)(1)--
(i) in subparagraph (B), by striking ``coupons or
authorization cards'' and inserting ``program benefits''; and
(ii) by striking ``coupons'' each place it appears and
inserting ``benefits''; and
(B) in subsection (d)(4)(L), by striking ``section
11(e)(22)'' and inserting ``section 11(e)(19)''.
(5) Section 8 of the Food and Nutrition Act of 2008 (7
U.S.C. 2017) is amended--
(A) in subsection (b), by striking ``, whether through
coupons, access devices, or otherwise''; and
(B) in subsections (e)(1) and (f), by striking ``section
3(i)(5)'' each place it appears and inserting ``section
3(n)(5)''.
(6) Section 9 of the Food and Nutrition Act of 2008 (7
U.S.C. 2018) is amended--
(A) by striking ``coupons'' each place it appears and
inserting ``benefits'';
(B) in subsection (a)--
(i) in paragraph (1), by striking ``coupon business'' and
inserting ``benefit transactions''; and
(ii) by striking paragraph (3) and inserting the following:
``(3) Authorization periods.--The Secretary shall establish
specific time periods during which authorization to accept
and redeem benefits shall be valid under the supplemental
nutrition assistance program.''; and
(C) in subsection (g), by striking ``section 3(g)(9)'' and
inserting ``section 3(k)(9)''.
(7) Section 10 of the Food and Nutrition Act of 2008 (7
U.S.C. 2019) is amended--
(A) by striking the section designation and heading and all
that follows through ``Regulations'' and inserting the
following:
``SEC. 10. REDEMPTION OF PROGRAM BENEFITS.
``Regulations'';
(B) by striking ``section 3(k)(4) of this Act'' and
inserting ``section 3(p)(4)'';
(C) by striking ``section 7(i)'' and inserting ``section
7(h)''; and
(D) by striking ``coupons'' each place it appears and
inserting ``benefits''.
(8) Section 11 of the Food and Nutrition Act of 2008 (7
U.S.C. 2020) is amended--
(A) in subsection (d)--
(i) by striking ``section 3(n)(1) of this Act'' each place
it appears and inserting ``section 3(t)(1)''; and
(ii) by striking ``section 3(n)(2) of this Act'' each place
it appears and inserting ``section 3(t)(2)'';
(B) in subsection (e)--
(i) in paragraph (8)(E), by striking ``paragraph (16) or
(20)(B)'' and inserting ``paragraph (15) or (18)(B)'';
(ii) by striking paragraphs (15) and (19);
(iii) by redesignating paragraphs (16) through (18) and
(20) through (25) as paragraphs (15) through (17) and (18)
through (23), respectively; and
(iv) in paragraph (17) (as so redesignated), by striking
``(described in section 3(n)(1) of this Act)'' and inserting
``described in section 3(t)(1)'';
(C) in subsection (h), by striking ``coupon or coupons''
and inserting ``benefits'';
(D) by striking ``coupon'' each place it appears and
inserting ``benefit'';
(E) by striking ``coupons'' each place it appears and
inserting ``benefits''; and
(F) in subsection (q), by striking ``section 11(e)(20)(B)''
and inserting ``subsection (e)(18)(B)''.
(9) Section 13 of the Food and Nutrition Act of 2008 (7
U.S.C. 2022) is amended by striking ``coupons'' each place it
appears and inserting ``benefits''.
(10) Section 15 of the Food and Nutrition Act of 2008 (7
U.S.C. 2024) is amended--
(A) in subsection (a), by striking ``coupons'' and
inserting ``benefits'';
(B) in subsection (b)(1)--
(i) by striking ``coupons, authorization cards, or access
devices'' each place it appears and inserting ``benefits'';
(ii) by striking ``coupons or authorization cards'' and
inserting ``benefits''; and
(iii) by striking ``access device'' each place it appears
and inserting ``benefit'';
(C) in subsection (c), by striking ``coupons'' each place
it appears and inserting ``benefits'';
(D) in subsection (d), by striking ``Coupons'' and
inserting ``Benefits'';
(E) by striking subsections (e) and (f);
(F) by redesignating subsections (g) and (h) as subsections
(e) and (f), respectively; and
(G) in subsection (e) (as so redesignated), by striking
``coupon, authorization cards or access devices'' and
inserting ``benefits''.
(11) Section 16(a) of the Food and Nutrition Act of 2008 (7
U.S.C. 2025(a)) is amended by striking ``coupons'' each place
it appears and inserting ``benefits''.
(12) Section 17 of the Food and Nutrition Act of 2008 (7
U.S.C. 2026) is amended--
(A) in subsection (a)(2), by striking ``coupon'' and
inserting ``benefit'';
(B) in subsection (b)(1)--
(i) in subparagraph (B)--
(I) in clause (iv)--
(aa) in subclause (I), inserting ``or otherwise providing
benefits in a form not restricted to the purchase of food''
after ``of cash'';
(bb) in subclause (III)(aa), by striking ``section 3(i)''
and inserting ``section 3(n)''; and
(cc) in subclause (VII), by striking ``section 7(j)'' and
inserting ``section 7(i)''; and
(II) in clause (v)--
(aa) by striking ``countersigned food coupons or similar'';
and
(bb) by striking ``food coupons'' and inserting ``EBT
cards''; and
(ii) in subparagraph (C)(i)(I), by striking ``coupons'' and
inserting ``EBT cards'';
(C) in subsection (f), by striking ``section 7(g)(2)'' and
inserting ``section 7(f)(2)''; and
(D) in subsection (j), by striking ``coupon'' and inserting
``benefit''.
(13) Section 19(a)(2)(A)(ii) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking
``section 3(o)(4)'' and inserting ``section 3(u)(4)''.
(14) Section 21 of the Food and Nutrition Act of 2008 (7
U.S.C. 2030) is repealed.
(15) Section 22 of the Food and Nutrition Act of 2008 (7
U.S.C. 2031) is amended--
(A) by striking ``food coupons'' each place it appears and
inserting ``benefits'';
(B) by striking ``coupons'' each place it appears and
inserting ``benefits''; and
(C) in subsection (g)(1)(A), by striking ``coupon'' and
inserting ``benefits''.
(16) Section 26(f)(3) of the Food and Nutrition Act of 2008
(7 U.S.C. 2035(f)(3)) is amended--
(A) in subparagraph (A), by striking ``subsections (a)
through (g)'' and inserting ``subsections (a) through (f)'';
and
(B) in subparagraph (E), by striking ``(16), (18), (20),
(24), and (25)'' and inserting ``(15), (17), (18), (22), and
(23)''.
(c) Conforming Cross-References.--
(1) In general.--
(A) Use of terms.--Each provision of law described in
subparagraph (B) is amended (as applicable)--
(i) by striking ``coupons'' each place it appears and
inserting ``benefits'';
(ii) by striking ``coupon'' each place it appears and
inserting ``benefit'';
(iii) by striking ``food coupons'' each place it appears
and inserting ``benefits'';
(iv) in each section heading, by striking ``FOOD COUPONS''
each place it appears and inserting ``BENEFITS'';
(v) by striking ``food stamp coupon'' each place it appears
and inserting ``benefit''; and
(vi) by striking ``food stamps'' each place it appears and
inserting ``benefits''.
(B) Provisions of law.--The provisions of law referred to
in subparagraph (A) are the following:
(i) Section 2 of Public Law 103-205 (7 U.S.C. 2012 note;
107 Stat. 2418).
(ii) Section 1956(c)(7)(D) of title 18, United States Code.
(iii) Titles II through XIX of the Social Security Act (42
U.S.C. 401 et seq.).
(iv) Section 401(b)(3) of the Social Security Amendments of
1972 (42 U.S.C. 1382e note; Public Law 92-603).
(v) The Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.).
(vi) Section 802(d)(2)(A)(i)(II) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C.
8011(d)(2)(A)(i)(II)).
(2) Definition references.--
(A) Section 2 of Public Law 103-205 (7 U.S.C. 2012 note;
107 Stat. 2418) is amended by striking ``section 3(k)(1)''
and inserting ``section 3(p)(1)''.
(B) Section 205 of the Food Stamp Program Improvements Act
of 1994 (7 U.S.C. 2012 note; Public Law 103-225) is amended
by striking ``section 3(k) of such Act (as amended by section
201)'' and inserting ``section 3(p) of that Act''.
(C) Section 115 of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (21 U.S.C. 862a) is
amended--
(i) by striking ``section 3(h)'' each place it appears and
inserting ``section 3(l)''; and
(ii) in subsection (e)(2), by striking ``section 3(m)'' and
inserting ``section 3(s)''.
(D) Section 402(a) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)) is
amended--
(i) in paragraph (2)(F)(ii), by striking ``section 3(r)''
and inserting ``section 3(j)''; and
(ii) in paragraph (3)(B), by striking ``section 3(h)'' and
inserting ``section 3(l)''.
(E) Section 3803(c)(2)(C)(vii) of title 31, United States
Code, is amended by striking ``section 3(h)'' and inserting
``section 3(l)''.
(F) Section 303(d)(4) of the Social Security Act (42 U.S.C.
503(d)(4)) is amended by striking ``section 3(n)(1)'' and
inserting ``section 3(t)(1)''.
(G) Section 404 of the Social Security Act (42 U.S.C. 604)
is amended by striking ``section 3(h)'' each place it appears
and inserting ``section 3(l)''.
(H) Section 531 of the Social Security Act (42 U.S.C. 654)
is amended by striking ``section 3(h)'' each place it appears
and inserting ``section 3(l)''.
(I) Section 802(d)(2)(A)(i)(II) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C.
8011(d)(2)(A)(i)(II)) is amended
[[Page H4531]]
by striking ``(as defined in section 3(e) of such Act)''.
(d) References.--Any reference in any Federal, State,
tribal, or local law (including regulations) to a ``coupon'',
``authorization card'', or other access device provided under
the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.)
shall be considered to be a reference to a ``benefit''
provided under that Act.
SEC. 4116. REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN.
Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C.
2020) is amended by striking the section enumerator and
heading and subsection (a) and inserting the following:
``SEC. 11. ADMINISTRATION.
``(a) State Responsibility.--
``(1) In general.--The State agency of each participating
State shall have responsibility for certifying applicant
households and issuing EBT cards.
``(2) Local administration.--The responsibility of the
agency of the State government shall not be affected by
whether the program is operated on a State-administered or
county-administered basis, as provided under section 3(t)(1).
``(3) Records.--
``(A) In general.--Each State agency shall keep such
records as may be necessary to determine whether the program
is being conducted in compliance with this Act (including
regulations issued under this Act).
``(B) Inspection and audit.--Records described in
subparagraph (A) shall--
``(i) be available for inspection and audit at any
reasonable time;
``(ii) subject to subsection (e)(8), be available for
review in any action filed by a household to enforce any
provision of this Act (including regulations issued under
this Act); and
``(iii) be preserved for such period of not less than 3
years as may be specified in regulations.
``(4) Review of major changes in program design.--
``(A) In general.--The Secretary shall develop standards
for identifying major changes in the operations of a State
agency, including--
``(i) large or substantially-increased numbers of low-
income households that do not live in reasonable proximity to
an office performing the major functions described in
subsection (e);
``(ii) substantial increases in reliance on automated
systems for the performance of responsibilities previously
performed by personnel described in subsection (e)(6)(B);
``(iii) changes that potentially increase the difficulty of
reporting information under subsection (e) or section 6(c);
and
``(iv) changes that may disproportionately increase the
burdens on any of the types of households described in
subsection (e)(2)(A).
``(B) Notification.--If a State agency implements a major
change in operations, the State agency shall--
``(i) notify the Secretary; and
``(ii) collect such information as the Secretary shall
require to identify and correct any adverse effects on
program integrity or access, including access by any of the
types of households described in subsection (e)(2)(A).''.
SEC. 4117. CIVIL RIGHTS COMPLIANCE.
Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C.
2020) is amended by striking subsection (c) and inserting the
following:
``(c) Civil Rights Compliance.--
``(1) In general.--In the certification of applicant
households for the supplemental nutrition assistance program,
there shall be no discrimination by reason of race, sex,
religious creed, national origin, or political affiliation.
``(2) Relation to other laws.--The administration of the
program by a State agency shall be consistent with the rights
of households under the following laws (including
implementing regulations):
``(A) The Age Discrimination Act of 1975 (42 U.S.C. 6101 et
seq.).
``(B) Section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794).
``(C) The Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.).
``(D) Title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.).''.
SEC. 4118. CODIFICATION OF ACCESS RULES.
Section 11(e)(1) of the Food and Nutrition Act of 2008 (7
U.S.C. 2020(e)(1)) is amended--
(1) by striking ``shall (A) at'' and inserting ``shall--
``(A) at''; and
(2) by striking ``and (B) use'' and inserting ``and
``(B) comply with regulations of the Secretary requiring
the use of''.
SEC. 4119. STATE OPTION FOR TELEPHONIC SIGNATURE.
Section 11(e)(2)(C) of the Food and Nutrition Act of 2008
(7 U.S.C. 2020(e)(2)(C)) is amended--
(1) by striking ``(C) Nothing in this Act'' and inserting
the following:
``(C) Electronic and automated systems.--
``(i) In general.--Nothing in this Act''; and
(2) by adding at the end the following:
``(ii) State option for telephonic signature.--A State
agency may establish a system by which an applicant household
may sign an application through a recorded verbal assent over
the telephone.
``(iii) Requirements.--A system established under clause
(ii) shall--
``(I) record for future reference the verbal assent of the
household member and the information to which assent was
given;
``(II) include effective safeguards against impersonation,
identity theft, and invasions of privacy;
``(III) not deny or interfere with the right of the
household to apply in writing;
``(IV) promptly provide to the household member a written
copy of the completed application, with instructions for a
simple procedure for correcting any errors or omissions;
``(V) comply with paragraph (1)(B);
``(VI) satisfy all requirements for a signature on an
application under this Act and other laws applicable to the
supplemental nutrition assistance program, with the date on
which the household member provides verbal assent considered
as the date of application for all purposes; and
``(VII) comply with such other standards as the Secretary
may establish.''.
SEC. 4120. PRIVACY PROTECTIONS.
Section 11(e)(8) of the Food and Nutrition Act of 2008 (7
U.S.C. 2020(e)(8)) is amended--
(1) in the matter preceding subparagraph (A)--
(A) by striking ``limit'' and inserting ``prohibit''; and
(B) by striking ``to persons'' and all that follows through
``State programs'';
(2) by redesignating subparagraphs (A) through (E) as
subparagraphs (B) through (F), respectively;
(3) by inserting before subparagraph (B) (as so
redesignated) the following:
``(A) the safeguards shall permit--
``(i) the disclosure of such information to persons
directly connected with the administration or enforcement of
the provisions of this Act, regulations issued pursuant to
this Act, Federal assistance programs, or federally-assisted
State programs; and
``(ii) the subsequent use of the information by persons
described in clause (i) only for such administration or
enforcement;''; and
(4) in subparagraph (F) (as so redesignated) by inserting
``or subsection (u)'' before the semicolon at the end.
SEC. 4121. PRESERVATION OF ACCESS AND PAYMENT ACCURACY.
Section 16 of the Food and Nutrition Act of 2008 (7 U.S.C.
2025) is amended by striking subsection (g) and inserting the
following:
``(g) Cost Sharing for Computerization.--
``(1) In general.--Except as provided in paragraphs (2) and
(3), the Secretary is authorized to pay to each State agency
the amount provided under subsection (a)(6) for the costs
incurred by the State agency in the planning, design,
development, or installation of 1 or more automatic data
processing and information retrieval systems that the
Secretary determines--
``(A) would assist in meeting the requirements of this Act;
``(B) meet such conditions as the Secretary prescribes;
``(C) are likely to provide more efficient and effective
administration of the supplemental nutrition assistance
program;
``(D) would be compatible with other systems used in the
administration of State programs, including the program
funded under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.);
``(E) would be tested adequately before and after
implementation, including through pilot projects in limited
areas for major systems changes as determined under rules
promulgated by the Secretary, data from which shall be
thoroughly evaluated before the Secretary approves the system
to be implemented more broadly; and
``(F) would be operated in accordance with an adequate plan
for--
``(i) continuous updating to reflect changed policy and
circumstances; and
``(ii) testing the effect of the system on access for
eligible households and on payment accuracy.
``(2) Limitation.--The Secretary shall not make payments to
a State agency under paragraph (1) to the extent that the
State agency--
``(A) is reimbursed for the costs under any other Federal
program; or
``(B) uses the systems for purposes not connected with the
supplemental nutrition assistance program.''.
SEC. 4122. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.
Section 16(h)(1)(A) of the Food and Nutrition Act of 2008
(7 U.S.C. 2025(h)(1)(A)) is amended in subparagraph (A), by
striking ``to remain available until expended'' and inserting
``to remain available for 15 months''.
PART IV--PROGRAM INTEGRITY
SEC. 4131. ELIGIBILITY DISQUALIFICATION.
Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C.
2015) is amended by adding at the end the following:
``(p) Disqualification for Obtaining Cash by Destroying
Food and Collecting Deposits.--Subject to any requirements
established by the Secretary, any person who has been found
by a State or Federal court or administrative agency in a
hearing under subsection (b) to have intentionally obtained
cash by purchasing products with supplemental nutrition
assistance program benefits that have containers that require
return deposits, discarding the product, and returning the
container for the deposit amount shall be ineligible for
benefits under this Act for such period of time as the
Secretary shall prescribe by regulation.
``(q) Disqualification for Sale of Food Purchased With
Supplemental Nutrition Assistance Program Benefits.--Subject
to
[[Page H4532]]
any requirements established by the Secretary, any person who
has been found by a State or Federal court or administrative
agency in a hearing under subsection (b) to have
intentionally sold any food that was purchased using
supplemental nutrition assistance program benefits shall be
ineligible for benefits under this Act for such period of
time as the Secretary shall prescribe by regulation.''.
SEC. 4132. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL
FOOD STORES AND WHOLESALE FOOD CONCERNS.
Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C.
2021) is amended--
(1) by striking the section designation and heading and all
that follows through the end of subsection (a) and inserting
the following:
``SEC. 12. CIVIL PENALTIES AND DISQUALIFICATION OF RETAIL
FOOD STORES AND WHOLESALE FOOD CONCERNS.
``(a) Disqualification.--
``(1) In general.--An approved retail food store or
wholesale food concern that violates a provision of this Act
or a regulation under this Act may be--
``(A) disqualified for a specified period of time from
further participation in the supplemental nutrition
assistance program;
``(B) assessed a civil penalty of up to $100,000 for each
violation; or
``(C) both.
``(2) Regulations.--Regulations promulgated under this Act
shall provide criteria for the finding of a violation of, the
suspension or disqualification of and the assessment of a
civil penalty against a retail food store or wholesale food
concern on the basis of evidence that may include facts
established through on-site investigations, inconsistent
redemption data, or evidence obtained through a transaction
report under an electronic benefit transfer system.'';
(2) in subsection (b)--
(A) by striking ``(b) Disqualification'' and inserting the
following:
``(b) Period of Disqualification.--Subject to subsection
(c), a disqualification'';
(B) in paragraph (1), by striking ``of no less than six
months nor more than five years'' and inserting ``not to
exceed 5 years'';
(C) in paragraph (2), by striking ``of no less than twelve
months nor more than ten years'' and inserting ``not to
exceed 10 years'';
(D) in paragraph (3)(B)--
(i) by inserting ``or a finding of the unauthorized
redemption, use, transfer, acquisition, alteration, or
possession of EBT cards'' after ``concern'' the first place
it appears; and
(ii) by striking ``civil money penalties'' and inserting
``civil penalties''; and
(E) by striking ``civil money penalty'' each place it
appears and inserting ``civil penalty'';
(3) in subsection (c)--
(A) by striking ``(c) The action'' and inserting the
following:
``(c) Civil Penalty and Review of Disqualification and
Penalty Determinations.--
``(1) Civil penalty.--In addition to a disqualification
under this section, the Secretary may assess a civil penalty
in an amount not to exceed $100,000 for each violation.
``(2) Review.--The action''; and
(B) in paragraph (2) (as designated by subparagraph (A)),
by striking ``civil money penalty'' and inserting ``civil
penalty'';
(4) in subsection (d)--
(A) by striking ``(d)'' and all that follows through ``.
The Secretary shall'' and inserting the following:
``(d) Conditions of Authorization.--
``(1) In general.--As a condition of authorization to
accept and redeem benefits, the Secretary may require a
retail food store or wholesale food concern that, pursuant to
subsection (a), has been disqualified for more than 180 days,
or has been subjected to a civil penalty in lieu of a
disqualification period of more than 180 days, to furnish a
collateral bond or irrevocable letter of credit for a period
of not more than 5 years to cover the value of benefits that
the store or concern may in the future accept and redeem in
violation of this Act.
``(2) Collateral.--The Secretary also may require a retail
food store or wholesale food concern that has been sanctioned
for a violation and incurs a subsequent sanction regardless
of the length of the disqualification period to submit a
collateral bond or irrevocable letter of credit.
``(3) Bond requirements.--The Secretary shall'';
(B) by striking ``If the Secretary finds'' and inserting
the following
``(4) Forfeiture.--If the Secretary finds''; and
(C) by striking ``Such store or concern'' and inserting the
following:
``(5) Hearing.--A store or concern described in paragraph
(4)'';
(5) in subsection (e), by striking ``civil money penalty''
each place it appears and inserting ``civil penalty''; and
(6) by adding at the end the following:
``(h) Flagrant Violations.--
``(1) In general.--The Secretary, in consultation with the
Inspector General of the Department of Agriculture, shall
establish procedures under which the processing of program
benefit redemptions for a retail food store or wholesale food
concern may be immediately suspended pending administrative
action to disqualify the retail food store or wholesale food
concern.
``(2) Requirements.--Under the procedures described in
paragraph (1), if the Secretary, in consultation with the
Inspector General, determines that a retail food store or
wholesale food concern is engaged in flagrant violations of
this Act (including regulations promulgated under this Act),
unsettled program benefits that have been redeemed by the
retail food store or wholesale food concern--
``(A) may be suspended; and
``(B)(i) if the program disqualification is upheld, may be
subject to forfeiture pursuant to section 15(g); or
``(ii) if the program disqualification is not upheld, shall
be released to the retail food store or wholesale food
concern.
``(3) No liability for interest.--The Secretary shall not
be liable for the value of any interest on funds suspended
under this subsection.''.
SEC. 4133. MAJOR SYSTEMS FAILURES.
Section 13(b) of the Food and Nutrition Act of 2008 (7
U.S.C. 2022(b)) is amended by adding at the end the
following:
``(5) Overissuances caused by systemic state errors.--
``(A) In general.--If the Secretary determines that a State
agency overissued benefits to a substantial number of
households in a fiscal year as a result of a major systemic
error by the State agency, as defined by the Secretary, the
Secretary may prohibit the State agency from collecting these
overissuances from some or all households.
``(B) Procedures.--
``(i) Information reporting by states.--Every State agency
shall provide to the Secretary all information requested by
the Secretary concerning the issuance of benefits to
households by the State agency in the applicable fiscal year.
``(ii) Final determination.--After reviewing relevant
information provided by a State agency, the Secretary shall
make a final determination--
``(I) whether the State agency overissued benefits to a
substantial number of households as a result of a systemic
error in the applicable fiscal year; and
``(II) as to the amount of the overissuance in the
applicable fiscal year for which the State agency is liable.
``(iii) Establishing a claim.--Upon determining under
clause (ii) that a State agency has overissued benefits to
households due to a major systemic error determined under
subparagraph (A), the Secretary shall establish a claim
against the State agency equal to the value of the
overissuance caused by the systemic error.
``(iv) Administrative and judicial review.--Administrative
and judicial review, as provided in section 14, shall apply
to the final determinations by the Secretary under clause
(ii).
``(v) Remission to the secretary.--
``(I) Determination not appealed.--If the determination of
the Secretary under clause (ii) is not appealed, the State
agency shall, as soon as practicable, remit to the Secretary
the dollar amount specified in the claim under clause (iii).
``(II) Determination appealed.--If the determination of the
Secretary under clause (ii) is appealed, upon completion of
administrative and judicial review under clause (iv), and a
finding of liability on the part of the State, the appealing
State agency shall, as soon as practicable, remit to the
Secretary a dollar amount subject to the finding made in the
administrative and judicial review.
``(vi) Alternative method of collection.--
``(I) In general.--If a State agency fails to make a
payment under clause (v) within a reasonable period of time,
as determined by the Secretary, the Secretary may reduce any
amount due to the State agency under any other provision of
this Act by the amount due.
``(II) Accrual of interest.--During the period of time
determined by the Secretary to be reasonable under subclause
(I), interest in the amount owed shall not accrue.
``(vii) Limitation.--Any liability amount established under
section 16(c)(1)(C) shall be reduced by the amount of the
claim established under this subparagraph.''.
PART V--MISCELLANEOUS
SEC. 4141. PILOT PROJECTS TO EVALUATE HEALTH AND NUTRITION
PROMOTION IN THE SUPPLEMENTAL NUTRITION
ASSISTANCE PROGRAM.
Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C.
2026) is amended by adding at the end the following:
``(k) Pilot Projects to Evaluate Health and Nutrition
Promotion in the Supplemental Nutrition Assistance Program.--
``(1) In general.--The Secretary shall carry out, under
such terms and conditions as the Secretary considers to be
appropriate, pilot projects to develop and test methods--
``(A) of using the supplemental nutrition assistance
program to improve the dietary and health status of
households eligible for or participating in the supplemental
nutrition assistance program; and
``(B) to reduce overweight, obesity (including childhood
obesity), and associated co-morbidities in the United States.
``(2) Grants.--
``(A) In general.--In carrying out this subsection, the
Secretary may enter into competitively awarded contracts or
cooperative agreements with, or provide grants to, public or
private organizations or agencies (as defined by the
Secretary), for use in accordance with projects that meet the
strategy goals of this subsection.
``(B) Application.--To be eligible to receive a contract,
cooperative agreement, or
[[Page H4533]]
grant under this paragraph, an organization shall submit to
the Secretary an application at such time, in such manner,
and containing such information as the Secretary may require.
``(C) Selection criteria.--Pilot projects shall be
evaluated against publicly disseminated criteria that may
include--
``(i) identification of a low-income target audience that
corresponds to individuals living in households with incomes
at or below 185 percent of the poverty level;
``(ii) incorporation of a scientifically based strategy
that is designed to improve diet quality through more
healthful food purchases, preparation, or consumption;
``(iii) a commitment to a pilot project that allows for a
rigorous outcome evaluation, including data collection;
``(iv) strategies to improve the nutritional value of food
served during school hours and during after-school hours;
``(v) innovative ways to provide significant improvement to
the health and wellness of children;
``(vi) other criteria, as determined by the Secretary.
``(D) Use of funds.--Funds provided under this paragraph
shall not be used for any project that limits the use of
benefits under this Act.
``(3) Projects.--Pilot projects carried out under paragraph
(1) may include projects to determine whether healthier food
purchases by and healthier diets among households
participating in the supplemental nutrition assistance
program result from projects that--
``(A) increase the supplemental nutrition assistance
purchasing power of the participating households by providing
increased supplemental nutrition assistance program benefit
allotments to the participating households;
``(B) increase access to farmers markets by participating
households through the electronic redemption of supplemental
nutrition assistance program benefits at farmers' markets;
``(C) provide incentives to authorized supplemental
nutrition assistance program retailers to increase the
availability of healthy foods to participating households;
``(D) subject authorized supplemental nutrition assistance
program retailers to stricter retailer requirements with
respect to carrying and stocking healthful foods;
``(E) provide incentives at the point of purchase to
encourage households participating in the supplemental
nutrition assistance program to purchase fruits, vegetables,
or other healthful foods; or
``(F) provide to participating households integrated
communication and education programs, including the provision
of funding for a portion of a school-based nutrition
coordinator to implement a broad nutrition action plan and
parent nutrition education programs in elementary schools,
separately or in combination with pilot projects carried out
under subparagraphs (A) through (E).
``(4) Evaluation and reporting.--
``(A) Evaluation.--
``(i) Independent evaluation.--
``(I) In general.--The Secretary shall provide for an
independent evaluation of projects selected under this
subsection that measures the impact of the pilot program on
health and nutrition as described in paragraph (1).
``(II) Requirement.--The independent evaluation under
subclause (I) shall use rigorous methodologies, particularly
random assignment or other methods that are capable of
producing scientifically valid information regarding which
activities are effective.
``(ii) Costs.--The Secretary may use funds provided to
carry out this section to pay costs associated with
monitoring and evaluating each pilot project.
``(B) Reporting.--Not later than 90 days after the last day
of fiscal year 2009 and each fiscal year thereafter until the
completion of the last evaluation under subparagraph (A), the
Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that includes
a description of--
``(i) the status of each pilot project;
``(ii) the results of the evaluation completed during the
previous fiscal year; and
``(iii) to the maximum extent practicable--
``(I) the impact of the pilot project on appropriate
health, nutrition, and associated behavioral outcomes among
households participating in the pilot project;
``(II) baseline information relevant to the stated goals
and desired outcomes of the pilot project; and
``(III) equivalent information about similar or identical
measures among control or comparison groups that did not
participate in the pilot project.
``(C) Public dissemination.--In addition to the reporting
requirements under subparagraph (B), evaluation results shall
be shared broadly to inform policy makers, service providers,
other partners, and the public in order to promote wide use
of successful strategies.
``(5) Funding.--
``(A) Authorization of appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section for each of fiscal years 2008 through
2012.
``(B) Mandatory funding.--Out of any funds made available
under section 18, on October 1, 2008, the Secretary shall
make available $20,000,000 to carry out a project described
in paragraph (3)(E), to remain available until expended.''.
SEC. 4142. STUDY ON COMPARABLE ACCESS TO SUPPLEMENTAL
NUTRITION ASSISTANCE FOR PUERTO RICO.
(a) In General.--The Secretary shall carry out a study of
the feasibility and effects of including the Commonwealth of
Puerto Rico in the definition of the term ``State'' under
section 3 of the Food and Nutrition Act of 2008 (7 U.S.C.
2012), in lieu of providing block grants under section 19 of
that Act (7 U.S.C. 2028).
(b) Inclusions.--The study shall include--
(1) an assessment of the administrative, financial
management, and other changes that would be necessary for the
Commonwealth to establish a comparable supplemental nutrition
assistance program, including compliance with appropriate
program rules under the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.), such as--
(A) benefit levels under section 3(u) of that Act (7 U.S.C.
2012(u));
(B) income eligibility standards under sections 5(c) and 6
of that Act (7 U.S.C. 2014(c), 2015); and
(C) deduction levels under section 5(e) of that Act (7
U.S.C. 2014(e));
(2) an estimate of the impact on Federal and Commonwealth
benefit and administrative costs;
(3) an assessment of the impact of the program on low-
income Puerto Ricans, as compared to the program under
section 19 of that Act (7 U.S.C. 2028); and
(4) such other matters as the Secretary considers to be
appropriate.
(c) Report.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report that describes the results of the study
conducted under this section.
(d) Funding.--
(1) In general.--On October 1, 2008, out of any funds in
the Treasury not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary to carry out this
section $1,000,000, to remain available until expended.
(2) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this section the funds transferred under paragraph (1),
without further appropriation.
Subtitle B--Food Distribution Programs
PART I--EMERGENCY FOOD ASSISTANCE PROGRAM
SEC. 4201. EMERGENCY FOOD ASSISTANCE.
(a) Purchase of Commodities.--Section 27(a) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended by--
(1) by striking ``(a) Purchase of Commodities'' and all
that follows through ``$140,000,000 of'' and inserting the
following:
``(a) Purchase of Commodities.--
``(1) In general.--From amounts made available to carry out
this Act, for each of the fiscal years 2008 through 2012, the
Secretary shall purchase a dollar amount described in
paragraph (2) of''; and
(2) by adding at the end the following:
``(2) Amounts.--The Secretary shall use to carry out
paragraph (1)--
``(A) for fiscal year 2008, $190,000,000;
``(B) for fiscal year 2009, $250,000,000; and
``(C) for each of fiscal years 2010 through 2012, the
dollar amount of commodities specified in subparagraph (B)
adjusted by the percentage by which the thrifty food plan has
been adjusted under section 3(u)(4) between June 30, 2008,
and June 30 of the immediately preceding fiscal year.''.
(b) State Plans.--Section 202A of the Emergency Food
Assistance Act of 1983 (7 U.S.C. 7503) is amended by striking
subsection (a) and inserting the following:
``(a) Plans.--
``(1) In general.--To receive commodities under this Act, a
State shall submit to the Secretary an operation and
administration plan for the provision of benefits under this
Act.
``(2) Updates.--A State shall submit to the Secretary for
approval any amendment to a plan submitted under paragraph
(1) in any case in which the State proposes to make a change
to the operation or administration of a program described in
the plan.''.
(c) Authorization and Appropriations.--Section 204(a)(1) of
the Emergency Food Assistance Act of 1983 (7 U.S.C.
7508(a)(1)) is amended in the first sentence--
(1) by striking ``$60,000,000'' and inserting
``$100,000,000''; and
(2) by inserting ``and donated wild game'' before the
period at the end.
SEC. 4202. EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS.
The Emergency Food Assistance Act of 1983 is amended by
inserting after section 208 (7 U.S.C. 7511) the following:
``SEC. 209. EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS.
``(a) Definition of Eligible Entity.--In this section, the
term `eligible entity' means an emergency feeding
organization.
``(b) Program Authorized.--
``(1) In general.--The Secretary shall use funds made
available under subsection (d) to make grants to eligible
entities to pay the costs of an activity described in
subsection (c).
``(2) Rural preference.--The Secretary shall use not less
than 50 percent of the funds described in paragraph (1) for a
fiscal year to make grants to eligible entities that serve
predominantly rural communities for the purposes of--
``(A) expanding the capacity and infrastructure of food
banks, State-wide food
[[Page H4534]]
bank associations, and food bank collaboratives that operate
in rural areas; and
``(B) improving the capacity of the food banks to procure,
receive, store, distribute, track, and deliver time-sensitive
or perishable food products.
``(c) Use of Funds.--An eligible entity shall use a grant
received under this section for any fiscal year to carry out
activities of the eligible entity, including--
``(1) the development and maintenance of a computerized
system for the tracking of time-sensitive food products;
``(2) capital, infrastructure, and operating costs
associated with the collection, storage, distribution, and
transportation of time-sensitive and perishable food
products;
``(3) improving the security and diversity of the emergency
food distribution and recovery systems of the United States
through the support of small or mid-size farms and ranches,
fisheries, and aquaculture, and donations from local food
producers and manufacturers to persons in need;
``(4) providing recovered foods to food banks and similar
nonprofit emergency food providers to reduce hunger in the
United States;
``(5) improving the identification of--
``(A) potential providers of donated foods;
``(B) potential nonprofit emergency food providers; and
``(C) persons in need of emergency food assistance in rural
areas; and
``(6) constructing, expanding, or repairing a facility or
equipment to support hunger relief agencies in the community.
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $15,000,000 for
each of fiscal years 2008 through 2012.''.
PART II--FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS
SEC. 4211. ASSESSING THE NUTRITIONAL VALUE OF THE FDPIR FOOD
PACKAGE.
(a) In General.--Section 4 of the Food and Nutrition Act of
2008 (7 U.S.C. 2013) is amended by striking subsection (b)
and inserting the following:
``(b) Food Distribution Program on Indian Reservations.--
``(1) In general.--Distribution of commodities, with or
without the supplemental nutrition assistance program, shall
be made whenever a request for concurrent or separate food
program operations, respectively, is made by a tribal
organization.
``(2) Administration.--
``(A) In general.--Subject to subparagraphs (B) and (C), in
the event of distribution on all or part of an Indian
reservation, the appropriate agency of the State government
in the area involved shall be responsible for the
distribution.
``(B) Administration by tribal organization.--If the
Secretary determines that a tribal organization is capable of
effectively and efficiently administering a distribution
described in paragraph (1), then the tribal organization
shall administer the distribution.
``(C) Prohibition.--The Secretary shall not approve any
plan for a distribution described in paragraph (1) that
permits any household on any Indian reservation to
participate simultaneously in the supplemental nutrition
assistance program and the program established under this
subsection.
``(3) Disqualified participants.--An individual who is
disqualified from participation in the food distribution
program on Indian reservations under this subsection is not
eligible to participate in the supplemental nutrition
assistance program under this Act for a period of time to be
determined by the Secretary.
``(4) Administrative costs.--The Secretary is authorized to
pay such amounts for administrative costs and distribution
costs on Indian reservations as the Secretary finds necessary
for effective administration of such distribution by a State
agency or tribal organization.
``(5) Bison meat.--Subject to the availability of
appropriations to carry out this paragraph, the Secretary may
purchase bison meat for recipients of food distributed under
this subsection, including bison meat from--
``(A) Native American bison producers; and
``(B) producer-owned cooperatives of bison ranchers.
``(6) Traditional and locally-grown food fund.--
``(A) In general.--Subject to the availability of
appropriations, the Secretary shall establish a fund for use
in purchasing traditional and locally-grown foods for
recipients of food distributed under this subsection.
``(B) Native american producers.--Where practicable, of the
food provided under subparagraph (A), at least 50 percent
shall be produced by Native American farmers, ranchers, and
producers.
``(C) Definition of traditional and locally grown.--The
Secretary shall determine the definition of the term
`traditional and locally-grown' with respect to food
distributed under this paragraph.
``(D) Survey.--In carrying out this paragraph, the
Secretary shall--
``(i) survey participants of the food distribution program
on Indian reservations established under this subsection to
determine which traditional foods are most desired by those
participants; and
``(ii) purchase or offer to purchase those traditional
foods that may be procured cost-effectively.
``(E) Report.--Not later than 1 year after the date of
enactment of this paragraph, and annually thereafter, the
Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report describing the
activities carried out under this paragraph during the
preceding calendar year.
``(F) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this
paragraph $5,000,000 for each of fiscal years 2008 through
2012.''.
(b) FDPIR Food Package.--Not later than 180 days after the
date of enactment of this Act, the Secretary shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report that describes--
(1) how the Secretary derives the process for determining
the food package under the food distribution program on
Indian reservations established under section 4(b) of the
Food and Nutrition Act of 2008 (7 U.S.C. 2013(b)) (referred
to in this subsection as the ``food package'');
(2) the extent to which the food package--
(A) addresses the nutritional needs of low-income Native
Americans compared to the supplemental nutrition assistance
program, particularly for very low-income households;
(B) conforms (or fails to conform) to the 2005 Dietary
Guidelines for Americans published under section 301 of the
National Nutrition Monitoring and Related Research Act of
1990 (7 U.S.C. 5341);
(C) addresses (or fails to address) the nutritional and
health challenges that are specific to Native Americans; and
(D) is limited by distribution costs or challenges in
infrastructure; and
(3)(A) any plans of the Secretary to revise and update the
food package to conform with the most recent Dietary
Guidelines for Americans, including any costs associated with
the planned changes; or
(B) if the Secretary does not plan changes to the food
package, the rationale of the Secretary for retaining the
food package.
PART III--COMMODITY SUPPLEMENTAL FOOD PROGRAM
SEC. 4221. COMMODITY SUPPLEMENTAL FOOD PROGRAM.
Section 5 of the Agriculture and Consumer Protection Act of
1973 (7 U.S.C. 612c note; Public Law 93-86) is amended by
striking subsection (g) and inserting the following:
``(g) Prohibition.--Notwithstanding any other provision of
law (including regulations), the Secretary may not require a
State or local agency to prioritize assistance to a
particular group of individuals that are--
``(1) low-income persons aged 60 and older; or
``(2) women, infants, and children.''.
PART IV--SENIOR FARMERS' MARKET NUTRITION PROGRAM
SEC. 4231. SENIORS FARMERS' MARKET NUTRITION PROGRAM.
Section 4402 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 3007) is amended--
(1) in subsection (b)(1), by inserting ``honey,'' after
``vegetables,'';
(2) by striking subsection (c) and inserting the following:
``(c) Exclusion of Benefits in Determining Eligibility for
Other Programs.--The value of any benefit provided to any
eligible seniors farmers' market nutrition program recipient
under this section shall not be considered to be income or
resources for any purposes under any Federal, State, or local
law.''; and
(3) by adding at the end the following:
``(d) Prohibition on Collection of Sales Tax.--Each State
shall ensure that no State or local tax is collected within
the State on a purchase of food with a benefit distributed
under the seniors farmers' market nutrition program.
``(e) Regulations.--The Secretary may promulgate such
regulations as the Secretary considers to be necessary to
carry out the seniors farmers' market nutrition program.''.
Subtitle C--Child Nutrition and Related Programs
SEC. 4301. STATE PERFORMANCE ON ENROLLING CHILDREN RECEIVING
PROGRAM BENEFITS FOR FREE SCHOOL MEALS.
(a) In General.--Not later than December 31, 2008 and June
30 of each year thereafter, the Secretary shall submit to the
Committees on Agriculture and Education and Labor of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that assesses
the effectiveness of each State in enrolling school-aged
children in households receiving program benefits under the
Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.)
(referred to in this section as ``program benefits'') for
free school meals using direct certification.
(b) Specific Measures.--The assessment of the Secretary of
the performance of each State shall include--
(1) an estimate of the number of school-aged children, by
State, who were members of a household receiving program
benefits at any time in July, August, or September of the
prior year;
(2) an estimate of the number of school-aged children, by
State, who were directly certified as eligible for free
lunches under the Richard B. Russell National School Lunch
Act (42 U.S.C. 1751 et seq.), based on
[[Page H4535]]
receipt of program benefits, as of October 1 of the prior
year; and
(3) an estimate of the number of school-aged children, by
State, who were members of a household receiving program
benefits at any time in July, August, or September of the
prior year who were not candidates for direct certification
because on October 1 of the prior year the children attended
a school operating under the special assistance provisions of
section 11(a)(1) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1759a(a)(1)) that is not operating in a
base year.
(c) Performance Innovations.--The report of the Secretary
shall describe best practices from States with the best
performance or the most improved performance from the
previous year.
SEC. 4302. PURCHASES OF LOCALLY PRODUCED FOODS.
Section 9(j) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1758(j)) is amended to read as follows:
``(j) Purchases of Locally Produced Foods.--The Secretary
shall--
``(1) encourage institutions receiving funds under this Act
and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.)
to purchase unprocessed agricultural products, both locally
grown and locally raised, to the maximum extent practicable
and appropriate;
``(2) advise institutions participating in a program
described in paragraph (1) of the policy described in that
paragraph and paragraph (3) and post information concerning
the policy on the website maintained by the Secretary; and
``(3) allow institutions receiving funds under this Act and
the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.),
including the Department of Defense Fresh Fruit and Vegetable
Program, to use a geographic preference for the procurement
of unprocessed agricultural products, both locally grown and
locally raised.''.
SEC. 4303. HEALTHY FOOD EDUCATION AND PROGRAM REPLICABILITY.
Section 18(h) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1769(h)) is amended--
(1) in paragraph (1)(C), by inserting ``promotes healthy
food education in the school curriculum and'' before
``incorporates'';
(2) by redesignating paragraph (2) as paragraph (4); and
(3) by inserting after paragraph (1) the following:
``(2) Administration.--In providing grants under paragraph
(1), the Secretary shall give priority to projects that can
be replicated in schools.
``(3) Pilot program for high-poverty schools.--
``(A) Definitions.--In this paragraph:
``(i) Eligible program.--The term `eligible program'
means--
``(I) a school-based program with hands-on vegetable
gardening and nutrition education that is incorporated into
the curriculum for 1 or more grades at 2 or more eligible
schools; or
``(II) a community-based summer program with hands-on
vegetable gardening and nutrition education that is part of,
or coordinated with, a summer enrichment program at 2 or more
eligible schools.
``(ii) Eligible school.--The term `eligible school' means a
public school, at least 50 percent of the students of which
are eligible for free or reduced price meals under this Act.
``(B) Establishment.--The Secretary shall carry out a pilot
program under which the Secretary shall provide to nonprofit
organizations or public entities in not more than 5 States
grants to develop and run, through eligible programs,
community gardens at eligible schools in the States that
would--
``(i) be planted, cared for, and harvested by students at
the eligible schools; and
``(ii) teach the students participating in the community
gardens about agriculture production practices and diet.
``(C) Priority states.--Of the States in which grantees
under this paragraph are located--
``(i) at least 1 State shall be among the 15 largest
States, as determined by the Secretary;
``(ii) at least 1 State shall be among the 16th to 30th
largest States, as determined by the Secretary; and
``(iii) at least 1 State shall be a State that is not
described in clause (i) or (ii).
``(D) Use of produce.--Produce from a community garden
provided a grant under this paragraph may be--
``(i) used to supplement food provided at the eligible
school;
``(ii) distributed to students to bring home to the
families of the students; or
``(iii) donated to a local food bank or senior center
nutrition program.
``(E) No cost-sharing requirement.--A nonprofit
organization or public entity that receives a grant under
this paragraph shall not be required to share the cost of
carrying out the activities assisted under this paragraph.
``(F) Evaluation.--A nonprofit organization or public
entity that receives a grant under this paragraph shall be
required to cooperate in an evaluation in accordance with
paragraph (1)(H).''.
SEC. 4304. FRESH FRUIT AND VEGETABLE PROGRAM.
(a) Program.--
(1) In general.--The Richard B. Russell National School
Lunch Act is amended by inserting after section 18 (42 U.S.C.
1769) the following:
``SEC. 19. FRESH FRUIT AND VEGETABLE PROGRAM.
``(a) In General.--For the school year beginning July 2008
and each subsequent school year, the Secretary shall provide
grants to States to carry out a program to make free fresh
fruits and vegetables available in elementary schools
(referred to in this section as the `program').
``(b) Program.--A school participating in the program shall
make free fresh fruits and vegetables available to students
throughout the school day (or at such other times as are
considered appropriate by the Secretary) in 1 or more areas
designated by the school.
``(c) Funding to States.--
``(1) Minimum grant.--Except as provided in subsection
(i)(2), the Secretary shall provide to each of the 50 States
and the District of Columbia an annual grant in an amount
equal to 1 percent of the funds made available for a year to
carry out the program.
``(2) Additional funding.--Of the funds remaining after
grants are made under paragraph (1), the Secretary shall
allocate additional funds to each State that is operating a
school lunch program under section 4 based on the proportion
that--
``(A) the population of the State; bears to
``(B) the population of the United States.
``(d) Selection of Schools.--
``(1) In general.--Except as provided in paragraph (2) of
this subsection and section 4304(a)(2) of the Food,
Conservation, and Energy Act of 2008, each year, in selecting
schools to participate in the program, each State shall--
``(A) ensure that each school chosen to participate in the
program is a school--
``(i) in which not less than 50 percent of the students are
eligible for free or reduced price meals under this Act; and
``(ii) that submits an application in accordance with
subparagraph (D);
``(B) to the maximum extent practicable, give the highest
priority to schools with the highest proportion of children
who are eligible for free or reduced price meals under this
Act;
``(C) ensure that each school selected is an elementary
school (as defined in section 9101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801));
``(D) solicit applications from interested schools that
include--
``(i) information pertaining to the percentage of students
enrolled in the school submitting the application who are
eligible for free or reduced price school lunches under this
Act;
``(ii) a certification of support for participation in the
program signed by the school food manager, the school
principal, and the district superintendent (or equivalent
positions, as determined by the school);
``(iii) a plan for implementation of the program, including
efforts to integrate activities carried out under this
section with other efforts to promote sound health and
nutrition, reduce overweight and obesity, or promote physical
activity; and
``(iv) such other information as may be requested by the
Secretary; and
``(E) encourage applicants to submit a plan for
implementation of the program that includes a partnership
with 1 or more entities that will provide non-Federal
resources (including entities representing the fruit and
vegetable industry).
``(2) Exception.--Clause (i) of paragraph (1)(A) shall not
apply to a State if all schools that meet the requirements of
that clause have been selected and the State does not have a
sufficient number of additional schools that meet the
requirement of that clause.
``(3) Outreach to low-income schools.--
``(A) In general.--Prior to making decisions regarding
school participation in the program, a State agency shall
inform the schools within the State with the highest
proportion of free and reduced price meal eligibility,
including Native American schools, of the eligibility of the
schools for the program with respect to priority granted to
schools with the highest proportion of free and reduced price
eligibility under paragraph (1)(B).
``(B) Requirement.--In providing information to schools in
accordance with subparagraph (A), a State agency shall inform
the schools that would likely be chosen to participate in the
program under paragraph (1)(B).
``(e) Notice of Availability.--If selected to participate
in the program, a school shall widely publicize within the
school the availability of free fresh fruits and vegetables
under the program.
``(f) Per-Student Grant.--The per-student grant provided to
a school under this section shall be--
``(1) determined by a State agency; and
``(2) not less than $50, nor more than $75.
``(g) Limitation.--To the maximum extent practicable, each
State agency shall ensure that in making the fruits and
vegetables provided under this section available to students,
schools offer the fruits and vegetables separately from meals
otherwise provided at the school under this Act or the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
``(h) Evaluation and Reports.--
``(1) In general.--The Secretary shall conduct an
evaluation of the program, including a determination as to
whether children experienced, as a result of participating in
the program--
``(A) increased consumption of fruits and vegetables;
[[Page H4536]]
``(B) other dietary changes, such as decreased consumption
of less nutritious foods; and
``(C) such other outcomes as are considered appropriate by
the Secretary.
``(2) Report.--Not later than September 30, 2011, the
Secretary shall submit to the Committee on Education and
Labor of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report
that describes the results of the evaluation under paragraph
(1).
``(i) Funding.--
``(1) In general.--Out of the funds made available under
subsection (b)(2)(A) of section 14222 of the Food,
Conservation, and Energy Act of 2008, the Secretary shall use
the following amounts to carry out this section:
``(A) On October 1, 2008, $40,000,000.
``(B) On July 1, 2009, $65,000,000.
``(C) On July 1, 2010, $101,000,000.
``(D) On July 1, 2011, $150,000,000.
``(E) On July 1, 2012, and each July 1 thereafter, the
amount made available for the preceding fiscal year, as
adjusted to reflect changes for the 12-month period ending
the preceding April 30 in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics
of the Department of Labor, for items other than food.
``(2) Maintenance of existing funding.--In allocating
funding made available under paragraph (1) among the States
in accordance with subsection (c), the Secretary shall ensure
that each State that received funding under section 18(f) on
the day before the date of enactment of the Food,
Conservation, and Energy Act of 2008 shall continue to
receive sufficient funding under this section to maintain the
caseload level of the State under that section as in effect
on that date.
``(3) Evaluation funding.--On October 1, 2008, out of any
funds made available under subsection (b)(2)(A) of section
14222 of the Food, Conservation, and Energy Act of 2008, the
Secretary shall use to carry out the evaluation required
under subsection (h), $3,000,000, to remain available for
obligation until September 30, 2010.
``(4) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this section any funds transferred for that purpose, without
further appropriation.
``(5) Authorization of appropriations.--In addition to any
other amounts made available to carry out this section, there
are authorized to be appropriated such sums as are necessary
to expand the program established under this section.
``(6) Administrative costs.--
``(A) In general.--Of funds made available to carry out
this section for a fiscal year, the Secretary may use not
more than $500,000 for the administrative costs of carrying
out the program.
``(B) Reservation of funds.--The Secretary shall allow each
State to reserve such funding as the Secretary determines to
be necessary to administer the program in the State (with
adjustments for the size of the State and the grant amount),
but not to exceed the amount required to pay the costs of 1
full-time coordinator for the program in the State.
``(7) Reallocation.--
``(A) Among states.--The Secretary may reallocate any
amounts made available to carry out this section that are not
obligated or expended by a date determined by the Secretary.
``(B) Within states.--A State that receives a grant under
this section may reallocate any amounts made available under
the grant that are not obligated or expended by a date
determined by the Secretary.''.
(2) Transition of existing schools.--
(A) Existing secondary schools.--Section 19(d)(1)(C) of the
Richard B. Russell National School Lunch Act (as amended by
paragraph (1)) may be waived by a State until July 1, 2010,
for each secondary school in the State that has been awarded
funding under section 18(f) of that Act (42 U.S.C. 1769(f))
for the school year beginning July 1, 2008.
(B) School year beginning july 1, 2008.--To facilitate
transition from the program authorized under section 18(f) of
the Richard B. Russell National School Lunch Act (42 U.S.C.
1769(f)) (as in effect on the day before the date of
enactment of this Act) to the program established under
section 19 of that Act (as amended by paragraph (1))--
(i) for the school year beginning July 1, 2008, the
Secretary may permit any school selected for participation
under section 18(f) of that Act (42 U.S.C. 1769(f)) for that
school year to continue to participate under section 19 of
that Act until the end of that school year; and
(ii) funds made available under that Act for fiscal year
2009 may be used to support the participation of any schools
selected to participate in the program authorized under
section 18(f) of that Act (42 U.S.C. 1769(f)) (as in effect
on the day before the date of enactment of this Act).
(b) Conforming Amendments.--Section 18 of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1769) is
amended--
(1) by striking subsection (f); and
(2) by redesignating subsections (g) through (j) as
subsections (f) through (i), respectively.
SEC. 4305. WHOLE GRAIN PRODUCTS.
(a) Purpose.--The purpose of this section is to encourage
greater awareness and interest in the number and variety of
whole grain products available to schoolchildren, as
recommended by the 2005 Dietary Guidelines for Americans.
(b) Definition of Eligible Whole Grains and Whole Grain
Products.--In this section, the terms ``whole grains'' and
``whole grain products'' have the meaning given the terms by
the Food and Nutrition Service in the HealthierUS School
Challenge.
(c) Purchase of Whole Grains and Whole Grain Products.--In
addition to the commodities delivered under section 6 of the
Richard B. Russell National School Lunch Act (42 U.S.C.
1755), the Secretary shall purchase whole grains and whole
grain products for use in--
(1) the school lunch program established under the Richard
B. Russell National School Lunch Act (42 U.S.C. 1751 et
seq.); and
(2) the school breakfast program established by section 4
of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
(d) Evaluation.--Not later than September 30, 2011, the
Secretary shall conduct an evaluation of the activities
conducted under subsection (c) that includes--
(1) an evaluation of whether children participating in the
school lunch and breakfast programs increased their
consumption of whole grains;
(2) an evaluation of which whole grains and whole grain
products are most acceptable for use in the school lunch and
breakfast programs;
(3) any recommendations of the Secretary regarding the
integration of whole grain products in the school lunch and
breakfast programs; and
(4) an evaluation of any other outcomes determined to be
appropriate by the Secretary.
(e) Report.--As soon as practicable after the completion of
the evaluation under subsection (d), the Secretary shall
submit to the Committee on Agriculture, Nutrition, and
Forestry of the Senate and the Committee on Education and
Labor of the House of Representative a report describing the
results of the evaluation.
SEC. 4306. BUY AMERICAN REQUIREMENTS.
(a) Findings.--The Congress finds the following:
(1) Federal law requires that commodities and products
purchased with Federal funds be, to the extent practicable,
of domestic origin.
(2) Federal Buy American statutory requirements seek to
ensure that purchases made with Federal funds benefit
domestic producers.
(3) The Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.) requires the use of domestic food
products for all meals served under the program, including
food products purchased with local funds.
(b) Buy American Statutory Requirements.--The Department of
Agriculture should undertake training, guidance, and
enforcement of the various current Buy American statutory
requirements and regulations, including those of the Richard
B. Russell National School Lunch Act (42 U.S.C. 1751 et
seq.).
SEC. 4307. SURVEY OF FOODS PURCHASED BY SCHOOL FOOD
AUTHORITIES.
(a) In General.--For fiscal year 2009, the Secretary shall
carry out a nationally representative survey of the foods
purchased during the most recent school year for which data
is available by school authorities participating in the
school lunch program established under the Richard B. Russell
National School Lunch Act (42 U.S.C. 1751 et seq.).
(b) Report.--
(1) In general.--On completion of the survey, the Secretary
shall submit to the Committees on Agriculture and Education
and Labor of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a
report that describes the results of the survey.
(2) Interim requirement.--If the initial report required
under paragraph (1) is not submitted to the Committees
referred to in that paragraph by June 30, 2009, the Secretary
shall submit to the Committees an interim report that
describes the relevant survey data, or a sample of such data,
available to the Secretary as of that date.
(c) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this
section not more than $3,000,000.
Subtitle D--Miscellaneous
SEC. 4401. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY
LELAND INTERNATIONAL HUNGER FELLOWS.
Section 4404 of the Farm Security and Rural Investment Act
of 2002 (2 U.S.C. 1161) is amended to read as follows:
``SEC. 4404. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY
LELAND INTERNATIONAL HUNGER FELLOWS.
``(a) Short Title.--This section may be cited as the `Bill
Emerson National Hunger Fellows and Mickey Leland
International Hunger Fellows Program Act of 2008'.
``(b) Definitions.--In this subsection:
``(1) Director.--The term `Director' means the head of the
Congressional Hunger Center.
``(2) Fellow.--The term `fellow' means--
``(A) a Bill Emerson Hunger Fellow; or
``(B) Mickey Leland Hunger Fellow.
``(3) Fellowship programs.--The term `Fellowship Programs'
means the Bill Emerson National Hunger Fellowship Program and
the Mickey Leland International Hunger Fellowship Program
established under subsection (c)(1).
``(c) Fellowship Programs.--
``(1) In general.--There is established the Bill Emerson
National Hunger Fellowship Program and the Mickey Leland
International Hunger Fellowship Program.
[[Page H4537]]
``(2) Purposes.--
``(A) In general.--The purposes of the Fellowship Programs
are--
``(i) to encourage future leaders of the United States--
``(I) to pursue careers in humanitarian and public service;
``(II) to recognize the needs of low-income people and
hungry people;
``(III) to provide assistance to people in need; and
``(IV) to seek public policy solutions to the challenges of
hunger and poverty;
``(ii) to provide training and development opportunities
for such leaders through placement in programs operated by
appropriate organizations or entities; and
``(iii) to increase awareness of the importance of public
service.
``(B) Bill emerson hunger fellowship program.--The purpose
of the Bill Emerson Hunger Fellowship Program is to address
hunger and poverty in the United States.
``(C) Mickey leland hunger fellowship program.--The purpose
of the Mickey Leland Hunger Fellowship Program is to address
international hunger and other humanitarian needs.
``(3) Administration.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall offer to provide a grant to the Congressional
Hunger Center to administer the Fellowship Programs.
``(B) Terms of grant.--The terms of the grant provided
under subparagraph (A), including the length of the grant and
provisions for the alteration or termination of the grant,
shall be determined by the Secretary in accordance with this
section.
``(d) Fellowships.--
``(1) In general.--The Director shall make available Bill
Emerson Hunger Fellowships and Mickey Leland Hunger
Fellowships in accordance with this subsection.
``(2) Curriculum.--
``(A) In general.--The Fellowship Programs shall provide
experience and training to develop the skills necessary to
train fellows to carry out the purposes described in
subsection (c)(2), including--
``(i) training in direct service programs for the hungry
and other anti-hunger programs in conjunction with community-
based organizations through a program of field placement; and
``(ii) providing experience in policy development through
placement in a governmental entity or nongovernmental,
nonprofit, or private sector organization.
``(B) Work plan.--To carry out subparagraph (A) and assist
in the evaluation of the fellowships under paragraph (6), the
Director shall, for each fellow, approve a work plan that
identifies the target objectives for the fellow in the
fellowship, including specific duties and responsibilities
relating to those objectives.
``(3) Period of fellowship.--
``(A) Bill emerson hunger fellow.--A Bill Emerson Hunger
Fellowship awarded under this section shall be for not more
than 15 months.
``(B) Mickey leland hunger fellow.--A Mickey Leland Hunger
Fellowship awarded under this section shall be for not more
than 2 years.
``(4) Selection of fellows.--
``(A) In general.--Fellowships shall be awarded pursuant to
a nationwide competition established by the Director.
``(B) Qualifications.--A successful program applicant shall
be an individual who has demonstrated--
``(i) an intent to pursue a career in humanitarian services
and outstanding potential for such a career;
``(ii) leadership potential or actual leadership
experience;
``(iii) diverse life experience;
``(iv) proficient writing and speaking skills;
``(v) an ability to live in poor or diverse communities;
and
``(vi) such other attributes as are considered to be
appropriate by the Director.
``(5) Amount of award.--
``(A) In general.--A fellow shall receive--
``(i) a living allowance during the term of the Fellowship;
and
``(ii) subject to subparagraph (B), an end-of-service
award.
``(B) Requirement for successful completion of
fellowship.--Each fellow shall be entitled to receive an end-
of-service award at an appropriate rate for each month of
satisfactory service completed, as determined by the
Director.
``(C) Terms of fellowship.--A fellow shall not be
considered an employee of--
``(i) the Department of Agriculture;
``(ii) the Congressional Hunger Center; or
``(iii) a host agency in the field or policy placement of
the fellow.
``(D) Recognition of fellowship award.--
``(i) Emerson fellow.--An individual awarded a fellowship
from the Bill Emerson Hunger Fellowship shall be known as an
`Emerson Fellow'.
``(ii) Leland fellow.--An individual awarded a fellowship
from the Mickey Leland Hunger Fellowship shall be known as a
`Leland Fellow'.
``(6) Evaluations and audits.--Under terms stipulated in
the contract entered into under subsection (c)(3), the
Director shall--
``(A) conduct periodic evaluations of the Fellowship
Programs; and
``(B) arrange for annual independent financial audits of
expenditures under the Fellowship Programs.
``(e) Authority.--
``(1) In general.--Subject to paragraph (2), in carrying
out this section, the Director may solicit, accept, use, and
dispose of gifts, bequests, or devises of services or
property, both real and personal, for the purpose of
facilitating the work of the Fellowship Programs.
``(2) Limitation.--Gifts, bequests, or devises of money and
proceeds from sales of other property received as gifts,
bequests, or devises shall be used exclusively for the
purposes of the Fellowship Programs.
``(f) Report.--The Director shall annually submit to the
Secretary of Agriculture, the Committee on Agriculture of the
House of Representatives, and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that--
``(1) describes the activities and expenditures of the
Fellowship Programs during the preceding fiscal year,
including expenditures made from funds made available under
subsection (g); and
``(2) includes the results of evaluations and audits
required by subsection (d).
``(g) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary such sums as
are necessary to carry out this section, to remain available
until expended.''.
SEC. 4402. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.
Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C.
2034) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) Definitions.--In this section:
``(1) Community food project.--In this section, the term
`community food project' means a community-based project
that--
``(A) requires a 1-time contribution of Federal assistance
to become self-sustaining; and
``(B) is designed--
``(i)(I) to meet the food needs of low-income individuals;
``(II) to increase the self-reliance of communities in
providing for the food needs of the communities; and
``(III) to promote comprehensive responses to local food,
farm, and nutrition issues; or
``(ii) to meet specific State, local, or neighborhood food
and agricultural needs, including needs relating to--
``(I) infrastructure improvement and development;
``(II) planning for long-term solutions; or
``(III) the creation of innovative marketing activities
that mutually benefit agricultural producers and low-income
consumers.
``(2) Center.--The term `Center' means the healthy urban
food enterprise development center established under
subsection (h).
``(3) Underserved community.--The term `underserved
community' means a community (including an urban or rural
community or an Indian tribe) that, as determined by the
Secretary, has--
``(A) limited access to affordable, healthy foods,
including fresh fruits and vegetables;
``(B) a high incidence of a diet-related disease (including
obesity) as compared to the national average;
``(C) a high rate of hunger or food insecurity; or
``(D) severe or persistent poverty.'';
(2) by redesignating subsection (h) as subsection (i); and
(3) by inserting after subsection (g) the following:
``(h) Healthy Urban Food Enterprise Development Center.--
``(1) Definition of eligible entity.--In this subsection,
the term `eligible entity' means--
``(A) a nonprofit organization;
``(B) a cooperative;
``(C) a commercial entity;
``(D) an agricultural producer;
``(E) an academic institution;
``(F) an individual; and
``(G) such other entities as the Secretary may designate.
``(2) Establishment.--The Secretary shall offer to provide
a grant to a nonprofit organization to establish and support
a healthy urban food enterprise development center to carry
out the purpose described in paragraph (3).
``(3) Purpose.--The purpose of the Center is to increase
access to healthy affordable foods, including locally
produced agricultural products, to underserved communities.
``(4) Activities.--
``(A) Technical assistance and information.--The Center
shall collect, develop, and provide technical assistance and
information to small and medium-sized agricultural producers,
food wholesalers and retailers, schools, and other
individuals and entities regarding best practices and the
availability of assistance for aggregating, storing,
processing, and marketing locally produced agricultural
products and increasing the availability of such products in
underserved communities.
``(B) Authority to subgrant.--The Center may provide
subgrants to eligible entities--
``(i) to carry out feasibility studies to establish
businesses for the purpose described in paragraph (3); and
``(ii) to establish and otherwise assist enterprises that
process, distribute, aggregate, store, and market healthy
affordable foods.
``(5) Priority.--In providing technical assistance and
grants under paragraph (4), the Center shall give priority to
applications that include projects--
``(A) to benefit underserved communities; and
[[Page H4538]]
``(B) to develop market opportunities for small and mid-
sized farm and ranch operations.
``(6) Report.--For each fiscal year for which the nonprofit
organization described in paragraph (2) receives funds, the
organization shall submit to the Secretary a report
describing the activities carried out in the preceding fiscal
year, including--
``(A) a description of technical assistance provided by the
Center;
``(B) the total number and a description of the subgrants
provided under paragraph (4)(B);
``(C) a complete listing of cases in which the activities
of the Center have resulted in increased access to healthy,
affordable foods, such as fresh fruit and vegetables,
particularly for school-aged children and individuals in low-
income communities; and
``(D) a determination of whether the activities identified
in subparagraph (C) are sustained during the years following
the initial provision of technical assistance and subgrants
under this section.
``(7) Competitive award process.--The Secretary shall use a
competitive process to award funds to establish the Center.
``(8) Limitation on administrative expenses.--Not more than
10 percent of the total amount allocated for this subsection
in a given fiscal year may be used for administrative
expenses.
``(9) Funding.--
``(A) In general.--Out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer to the Secretary to carry out this subsection
$1,000,000 for each of fiscal years 2009 through 2011.
``(B) Additional funding.--There is authorized to be
appropriated $2,000,000 to carry out this subsection for
fiscal year 2012.''.
SEC. 4403. JOINT NUTRITION MONITORING AND RELATED RESEARCH
ACTIVITIES.
The Secretary and the Secretary of Health and Human
Services shall continue to provide jointly for national
nutrition monitoring and related research activities carried
out as of the date of enactment of this Act--
(1) to collect continuous dietary, health, physical
activity, and diet and health knowledge data on a nationally
representative sample;
(2) to periodically collect data on special at-risk
populations, as identified by the Secretaries;
(3) to distribute information on health, nutrition, the
environment, and physical activity to the public in a timely
fashion;
(4) to analyze new data that becomes available;
(5) to continuously update food composition tables; and
(6) to research and develop data collection methods and
standards.
SEC. 4404. SECTION 32 FUNDS FOR PURCHASE OF FRUITS,
VEGETABLES, AND NUTS TO SUPPORT DOMESTIC
NUTRITION ASSISTANCE PROGRAMS.
(a) Funding for Additional Purchases of Fruits, Vegetables,
and Nuts.--In addition to the purchases of fruits,
vegetables, and nuts required by section 10603 of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 612c-4),
the Secretary of Agriculture shall purchase fruits,
vegetables, and nuts for the purpose of providing nutritious
foods for use in domestic nutrition assistance programs,
using, of the funds made available under section 32 of the
Act of August 24, 1935 (7 U.S.C. 612c), the following
amounts:
(1) $190,000,000 for fiscal year 2008.
(2) $193,000,000 for fiscal year 2009.
(3) $199,000,000 for fiscal year 2010.
(4) $203,000,000 for fiscal year 2011.
(5) $206,000,000 for fiscal year 2012 and each fiscal year
thereafter.
(b) Form of Purchases.--Fruits, vegetables, and nuts may be
purchased under this section in the form of frozen, canned,
dried, or fresh fruits, vegetables, and nuts.
(c) Purchase of Fresh Fruits and Vegetables for
Distribution to Schools and Service Institutions.--Section
10603 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 612c-4) is amended by striking subsection (b) and
inserting the following:
``(b) Purchase of Fresh Fruits and Vegetables for
Distribution to Schools and Service Institutions.--The
Secretary of Agriculture shall purchase fresh fruits and
vegetables for distribution to schools and service
institutions in accordance with section 6(a) of the Richard
B. Russell National School Lunch Act (42 U.S.C. 1755(a))
using, of the amount specified in subsection (a), not less
than $50,000,000 for each of fiscal years 2008 through
2012.''.
SEC. 4405. HUNGER-FREE COMMUNITIES.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means a
public food program service provider or nonprofit
organization, including an emergency feeding organization,
that has collaborated, or will collaborate, with 1 or more
local partner organizations to achieve at least 1 hunger-free
communities goal.
(2) Emergency feeding organization.--The term ``emergency
feeding organization'' has the meaning given the term in
section 201A of the Emergency Food Assistance Act of 1983 (7
U.S.C. 7501).
(3) Hunger-free communities goal.--The term ``hunger-free
communities goal'' means any of the 14 goals described in the
H. Con. Res. 302 (102nd Congress).
(b) Hunger-Free Communities Collaborative Grants.--
(1) Program.--
(A) In general.--The Secretary shall use not more than 50
percent of any funds made available under subsection (e) to
make grants to eligible entities to pay the Federal share of
the costs of an activity described in paragraph (2).
(B) Federal share.--The Federal share of the cost of
carrying out an activity under this subsection shall not
exceed 80 percent.
(C) Non-federal share.--
(i) Calculation.--The non-Federal share of the cost of an
activity under this subsection may be provided in cash or
fairly evaluated in-kind contributions, including facilities,
equipment, or services.
(ii) Sources.--Any entity may provide the non-Federal share
of the cost of an activity under this subsection through a
State government, a local government, or a private source.
(2) Use of funds.--An eligible entity in a community shall
use a grant received under this subsection for any fiscal
year for hunger relief activities, including--
(A) meeting the immediate needs of people who experience
hunger in the community served by the eligible entity by--
(i) distributing food;
(ii) providing community outreach to assist in
participation in federally assisted nutrition programs,
including--
(I) the school breakfast program established by section 4
of the Child Nutrition Act of 1966 (42 U.S.C. 1773);
(II) the school lunch program established under the Richard
B. Russell National School Lunch Act (42 U.S.C. 1751 et
seq.);
(III) the summer food service program for children
established under section 13 of that Act; and
(IV) other Federal programs that provide food for children
in child care facilities and homeless and older individuals;
or
(iii) improving access to food as part of a comprehensive
service; and
(B) developing new resources and strategies to help reduce
hunger in the community and prevent hunger in the future by--
(i) developing creative food resources, such as community
gardens, buying clubs, food cooperatives, community-owned and
operated grocery stores, and farmers' markets;
(ii) coordinating food services with park and recreation
programs and other community-based outlets to reduce barriers
to access; or
(iii) creating nutrition education programs for at-risk
populations to enhance food-purchasing and food-preparation
skills and to heighten awareness of the connection between
diet and health.
(c) Hunger-Free Communities Infrastructure Grants.--
(1) Program authorized.--
(A) In general.--The Secretary shall use not more than 50
percent of any funds made available for a fiscal year under
subsection (e) to make grants to eligible entities to pay the
Federal share of the costs of an activity described in
paragraph (2).
(B) Federal share.--The Federal share of the cost of
carrying out an activity under this subsection shall not
exceed 80 percent.
(2) Application.--
(A) In general.--To receive a grant under this subsection,
an eligible entity shall submit an application at such time,
in such form, and containing such information as the
Secretary may prescribe.
(B) Contents.--Each application submitted under
subparagraph (A) shall--
(i) identify any activity described in paragraph (3) that
the grant will be used to fund; and
(ii) describe the means by which an activity identified
under clause (i) will reduce hunger in the community of the
eligible entity.
(C) Priority.--In making grants under this subsection, the
Secretary shall give priority to eligible entities that
demonstrate 2 or more of the following:
(i) The eligible entity serves a community in which the
rates of food insecurity, hunger, poverty, or unemployment
are demonstrably higher than national average rates.
(ii) The eligible entity serves a community that has
successfully carried out long-term efforts to reduce hunger
in the community.
(iii) The eligible entity serves a community that provides
public support for the efforts of the eligible entity.
(iv) The eligible entity is committed to achieving more
than 1 hunger-free communities goal.
(3) Use of funds.--An eligible entity shall use a grant
received under this subsection to construct, expand, or
repair a facility or equipment to support hunger relief
efforts in the community.
(d) Report.--If funds are made available under subsection
(e) to carry out this section, not later than September 30,
2012, the Secretary shall submit to Congress a report that
describes--
(1) each grant made under this section, including--
(A) a description of any activity funded; and
(B) the degree of success of each activity funded in
achieving hunger free-communities goals; and
(2) the degree of success of all activities funded under
this section in achieving domestic hunger goals.
(e) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section for each of fiscal years 2008 through 2012.
[[Page H4539]]
SEC. 4406. REAUTHORIZATION OF FEDERAL FOOD ASSISTANCE
PROGRAMS.
(a) Supplemental Nutrition Assistance Program.--
(1) Authorization of appropriations.--Section 18(a)(1) of
the Food and Nutrition Act of 2008 (7 U.S.C. 2027(a)(1)) is
amended in the first sentence by striking ``for each of the
fiscal years 2003 through 2007'' and inserting ``for each of
fiscal years 2008 through 2012''.
(2) Grants for simple application and eligibility
determination systems and improved access to benefits.--
Section 11(t)(1) of the Food and Nutrition Act of 2008 (7
U.S.C. 2020(t)(1)) is amended by striking ``For each of
fiscal years 2003 through 2007'' and inserting ``Subject to
the availability of appropriations under section 18(a), for
each fiscal year''.
(3) Funding of employment and training programs.--Section
16(h)(1) of the Food and Nutrition Act of 2008 (7 U.S.C.
2025(h)(1)) is amended--
(A) in subparagraph (A), by striking ``the amount of--''
and all that follows through the end of the subparagraph and
inserting ``, $90,000,000 for each fiscal year.''; and
(B) in subparagraph (E)(i), by striking ``for each of
fiscal years 2002 through 2007'' and inserting ``for each
fiscal year''.
(4) Reductions in payments for administrative costs.--
Section 16(k)(3) of the Food and Nutrition Act of 2008 (7
U.S.C. 2025(k)(3)) is amended--
(A) in the first sentence of subparagraph (A), by striking
``effective for each of fiscal years 1999 through 2007,'';
and
(B) in subparagraph (B)(ii), by striking ``through fiscal
year 2007''.
(5) Cash payment pilot projects.--Section 17(b)(1)(B)(vi)
of the Food and Nutrition Act of 2008 (7 U.S.C.
2026(b)(1)(B)(vi)) is amended--
(A) by striking ``Any pilot'' and inserting ``Subject to
the availability of appropriations under section 18(a), any
pilot''; and
(B) by striking ``through October 1, 2007,''.
(6) Consolidated block grants for puerto rico and american
samoa.--Section 19(a)(2)(A)(ii) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended by striking
``for each of fiscal years 2004 through 2007'' and inserting
``subject to the availability of appropriations under section
18(a), for each fiscal year thereafter''.
(7) Assistance for community food projects.--Section 25 of
the Food and Nutrition Act of 2008 (7 U.S.C. 2034) is
amended--
(A) in subsection (b)(2)(B), by striking ``for each of
fiscal years 1997 through 2007'' and inserting ``for fiscal
year 2008 and each fiscal year thereafter''; and
(B) in subsection (i)(4) (as redesignated by section 4402),
by striking ``of fiscal years 2003 through 2007'' and
inserting ``fiscal year thereafter''.
(b) Commodity Distribution.--
(1) Emergency food assistance.--Section 204(a)(1) of the
Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1))
is amended in the first sentence by striking ``for each of
the fiscal years 2003 through 2007'' and inserting ``for
fiscal year 2008 and each fiscal year thereafter''.
(2) Commodity distribution program.--Section 4(a) of the
Agriculture and Consumer Protection Act of 1973 (7 U.S.C.
612c note; Public Law 93-86) is amended in the first sentence
by striking ``years 1991 through 2007'' and inserting ``years
2008 through 2012''.
(3) Commodity supplemental food program.--Section 5 of the
Agriculture and Consumer Protection Act of 1973 (7 U.S.C.
612c note; Public Law 93-86) is amended--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``each of fiscal years
2003 through 2007'' and inserting ``each of fiscal years 2008
through 2012''; and
(ii) in paragraph (2)(B), by striking the subparagraph
designation and heading and all that follows through ``2007''
and inserting the following:
``(B) Subsequent fiscal years.--For each of fiscal years
2004 through 2012''; and
(B) in subsection (d)(2), by striking ``each of the fiscal
years 1991 through 2007'' and inserting ``each of fiscal
years 2008 through 2012''.
(4) Distribution of surplus commodities to special
nutrition projects.--Section 1114(a)(2)(A) of the Agriculture
and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended in the
first sentence by striking ``Effective through September 30,
2007'' and inserting ``For each of fiscal years 2008 through
2012''.
(c) Farm Security and Rural Investment.--
(1) Seniors farmers' market nutrition program.--Section
4402 of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 3007) is amended by striking by striking subsection
(a) and inserting the following:
``(a) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary of Agriculture shall use to carry
out and expand the seniors farmers' market nutrition program
$20,600,000 for each of fiscal years 2008 through 2012.''.
(2) Nutrition information and awareness pilot program.--
Section 4403(f) of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 3171 note; Public Law 107-171) is amended
by striking ``2007'' and inserting ``2012''.
SEC. 4407. EFFECTIVE AND IMPLEMENTATION DATES.
Except as otherwise provided in this title, this title and
the amendments made by this title take effect on October 1,
2008.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
SEC. 5001. DIRECT LOANS.
Section 302 of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1922) is amended--
(1) by striking the section designation and heading and all
that follows through ``(a) The Secretary is authorized to''
and inserting the following:
``SEC. 302. PERSONS ELIGIBLE FOR REAL ESTATE LOANS.
``(a) In General.--The Secretary may''; and
(2) in subsection (a)(2), by inserting ``, taking into
consideration all farming experience of the applicant,
without regard to any lapse between farming experiences''
after ``farming operations''.
SEC. 5002. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.
Section 304 of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1924) is amended to read as follows:
``SEC. 304. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.
``(a) In General.--The Secretary may make or guarantee
qualified conservation loans to eligible borrowers under this
section.
``(b) Definitions.--In this section:
``(1) Qualified conservation loan.--The term `qualified
conservation loan' means a loan, the proceeds of which are
used to cover the costs to the borrower of carrying out a
qualified conservation project.
``(2) Qualified conservation project.--The term `qualified
conservation project' means conservation measures that
address provisions of a conservation plan of the eligible
borrower.
``(3) Conservation plan.--The term `conservation plan'
means a plan, approved by the Secretary, that, for a farming
or ranching operation, identifies the conservation activities
that will be addressed with loan funds provided under this
section, including--
``(A) the installation of conservation structures to
address soil, water, and related resources;
``(B) the establishment of forest cover for sustained yield
timber management, erosion control, or shelter belt purposes;
``(C) the installation of water conservation measures;
``(D) the installation of waste management systems;
``(E) the establishment or improvement of permanent
pasture;
``(F) compliance with section 1212 of the Food Security Act
of 1985; and
``(G) other purposes consistent with the plan, including
the adoption of any other emerging or existing conservation
practices, techniques, or technologies approved by the
Secretary.
``(c) Eligibility.--
``(1) In general.--The Secretary may make or guarantee
loans to farmers or ranchers in the United States, farm
cooperatives, private domestic corporations, partnerships,
joint operations, trusts, or limited liability companies that
are controlled by farmers or ranchers and engaged primarily
and directly in agricultural production in the United States.
``(2) Requirements.--To be eligible for a loan under this
section, applicants shall meet the requirements in paragraphs
(1) and (2) of section 302(a).
``(d) Priority.--In making or guaranteeing loans under this
section, the Secretary shall give priority to--
``(1) qualified beginning farmers or ranchers and socially
disadvantaged farmers or ranchers;
``(2) owners or tenants who use the loans to convert to
sustainable or organic agricultural production systems; and
``(3) producers who use the loans to build conservation
structures or establish conservation practices to comply with
section 1212 of the Food Security Act of 1985.
``(e) Limitations Applicable to Loan Guarantees.--The
portion of a loan that the Secretary may guarantee under this
section shall be 75 percent of the principal amount of the
loan.
``(f) Administrative Provisions.--The Secretary shall
ensure, to the maximum extent practicable, that loans made or
guaranteed under this section are distributed across diverse
geographic regions.
``(g) Credit Eligibility.--The provisions of paragraphs (1)
and (3) of section 333 shall not apply to loans made or
guaranteed under this section.
``(h) Authorization of Appropriations.--For each of fiscal
years 2008 through 2012, there are authorized to be
appropriated to the Secretary such funds as are necessary to
carry out this section.''.
SEC. 5003. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS.
Section 305(a)(2) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1925(a)(2)) is amended by striking
``$200,000'' and inserting ``$300,000''.
SEC. 5004. DOWN PAYMENT LOAN PROGRAM.
Section 310E of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1935) is amended--
(1) in subsection (a)(1), by striking ``and ranchers'' and
inserting ``or ranchers and socially disadvantaged farmers or
ranchers'';
(2) in subsection (b)--
(A) by striking paragraph (1) and inserting the following;
``(1) Principal.--Each loan made under this section shall
be in an amount that does not exceed 45 percent of the least
of--
[[Page H4540]]
``(A) the purchase price of the farm or ranch to be
acquired;
``(B) the appraised value of the farm or ranch to be
acquired; or
``(C) $500,000.
``(2) Interest rate.--The interest rate on any loan made by
the Secretary under this section shall be a rate equal to the
greater of--
``(A) the difference obtained by subtracting 4 percent from
the interest rate for farm ownership loans under this
subtitle; or
``(B) 1.5 percent.''; and
(B) in paragraph (3), by striking ``15'' and inserting
``20'';
(3) in subsection (c)--
(A) in paragraph (1), by striking ``10'' and inserting
``5'';
(B) by striking paragraph (2) and redesignating paragraph
(3) as paragraph (2); and
(C) in paragraph (2)(B) (as so redesignated), by striking
``15-year'' and inserting ``20-year'';
(4) in subsection (d)--
(A) in paragraph (3)--
(i) by inserting ``and socially disadvantaged farmers or
ranchers'' after ``ranchers''; and
(ii) by striking ``and'' at the end;
(B) in paragraph (4), by striking ``and ranchers.'' and
inserting `` or ranchers or socially disadvantaged farmers or
ranchers; and''; and
(C) by adding at the end the following:
``(5) establish annual performance goals to promote the use
of the down payment loan program and other joint financing
arrangements as the preferred choice for direct real estate
loans made by any lender to a qualified beginning farmer or
rancher or socially disadvantaged farmer or rancher.''; and
(5) by adding at the end the following:
``(e) Socially Disadvantaged Farmer or Rancher Defined.--In
this section, the term `socially disadvantaged farmer or
rancher' has the meaning given that term in section
355(e)(2).''.
SEC. 5005. BEGINNING FARMER OR RANCHER AND SOCIALLY
DISADVANTAGED FARMER OR RANCHER CONTRACT LAND
SALES PROGRAM.
Section 310F of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1936) is amended to read as follows:
``SEC. 310F. BEGINNING FARMER OR RANCHER AND SOCIALLY
DISADVANTAGED FARMER OR RANCHER CONTRACT LAND
SALES PROGRAM.
``(a) In General.--The Secretary shall, in accordance with
this section, guarantee a loan made by a private seller of a
farm or ranch to a qualified beginning farmer or rancher or
socially disadvantaged farmer or rancher (as defined in
section 355(e)(2)) on a contract land sales basis.
``(b) Eligibility.--In order to be eligible for a loan
guarantee under subsection (a)--
``(1) the qualified beginning farmer or rancher or socially
disadvantaged farmer or rancher shall--
``(A) on the date the contract land sale that is subject of
the loan is complete, own and operate the farm or ranch that
is the subject of the contract land sale;
``(B) have a credit history that--
``(i) includes a record of satisfactory debt repayment, as
determined by the Secretary; and
``(ii) is acceptable to the Secretary; and
``(C) demonstrate to the Secretary that the farmer or
rancher, as the case may be, is unable to obtain sufficient
credit without a guarantee to finance any actual need of the
farmer or rancher, as the case may be, at a reasonable rate
or term; and
``(2) the loan shall meet applicable underwriting criteria,
as determined by the Secretary.
``(c) Limitations.--
``(1) Down payment.--The Secretary shall not provide a loan
guarantee under subsection (a) if the contribution of the
qualified beginning farmer or rancher or socially
disadvantaged farmer or rancher to the down payment for the
farm or ranch that is the subject of the contract land sale
would be less than 5 percent of the purchase price of the
farm or ranch.
``(2) Maximum purchase price.--The Secretary shall not
provide a loan guarantee under subsection (a) if the purchase
price or the appraisal value of the farm or ranch that is the
subject of the contract land sale is greater than $500,000.
``(d) Period of Guarantee.--The period during which a loan
guarantee under this section is in effect shall be the 10-
year period beginning with the date the guarantee is
provided.
``(e) Guarantee Plan.--
``(1) Selection of plan.--A private seller of a farm or
ranch who makes a loan that is guaranteed by the Secretary
under subsection (a) may select--
``(A) a prompt payment guarantee plan, which shall cover--
``(i) 3 amortized annual installments; or
``(ii) an amount equal to 3 annual installments (including
an amount equal to the total cost of any tax and insurance
incurred during the period covered by the annual
installments); or
``(B) a standard guarantee plan, which shall cover an
amount equal to 90 percent of the outstanding principal of
the loan.
``(2) Eligiblity for standard guarantee plan.--In order for
a private seller to be eligible for a standard guarantee plan
referred to in paragraph (1)(B), the private seller shall--
``(A) secure a commercial lending institution or similar
entity, as determined by the Secretary, to serve as an escrow
agent; or
``(B) in cooperation with the farmer or rancher, use an
appropriate alternate arrangement, as determined by the
Secretary.
``(f) Transition From Pilot Program.--
``(1) In general.--The Secretary may phase-in the
implementation of the changes to the Beginning Farmer and
Rancher and Socially Disadvantaged Farmer or Rancher Contract
Land Sales Program provided for in this section.
``(2) Limitation.--All changes to the Beginning Farmer and
Rancher and Socially Disadvantaged Farmer or Rancher Contract
Land Sales Program must be implemented for the 2011 Fiscal
Year.''.
Subtitle B--Operating Loans
SEC. 5101. FARMING EXPERIENCE AS ELIGIBILITY REQUIREMENT.
Section 311 of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1941) is amended--
(1) by striking the section designation and all that
follows through ``(a) The Secretary is authorized to'' and
inserting the following:
``SEC. 311. PERSONS ELIGIBLE FOR LOANS.
``(a) In General.--The Secretary may'';
(2) in subsection (a)(2), by inserting ``, taking into
consideration all farming experience of the applicant,
without regard to any lapse between farming experiences''
after ``farming operations''.
SEC. 5102. LIMITATIONS ON AMOUNT OF OPERATING LOANS.
Section 313(a)(1) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1943(a)(1)) is amended by striking
``$200,000'' and inserting ``$300,000''.
SEC. 5103. SUSPENSION OF LIMITATION ON PERIOD FOR WHICH
BORROWERS ARE ELIGIBLE FOR GUARANTEED
ASSISTANCE.
Section 5102 of the Farm Security And Rural Investment Act
of 2002 (7 U.S.C. 1949 note; Public Law 107-171) is amended
by striking ``September 30, 2007'' and inserting ``December
31, 2010''.
Subtitle C--Emergency Loans
SEC. 5201. ELIGIBILITY OF EQUINE FARMERS AND RANCHERS FOR
EMERGENCY LOANS.
Section 321(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1961(a)) is amended--
(1) in paragraph (1), by striking ``farmers, ranchers'' and
inserting ``farmers or ranchers (including equine farmers or
ranchers)''; and
(2) in paragraph (2)(A), by striking ``farming, ranching,''
and inserting ``farming or ranching (including equine farming
or ranching)''.
Subtitle D--Administrative Provisions
SEC. 5301. BEGINNING FARMER AND RANCHER INDIVIDUAL
DEVELOPMENT ACCOUNTS PILOT PROGRAM.
Subtitle D of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981-2008r) is amended by inserting after
section 333A the following:
``SEC. 333B. BEGINNING FARMER AND RANCHER INDIVIDUAL
DEVELOPMENT ACCOUNTS PILOT PROGRAM.
``(a) Definitions.--In this section:
``(1) Demonstration program.--The term `demonstration
program' means a demonstration program carried out by a
qualified entity under the pilot program established in
subsection (b)(1).
``(2) Eligible participant.--The term `eligible
participant' means a qualified beginning farmer or rancher
that--
``(A) lacks significant financial resources or assets; and
``(B) has an income that is less than--
``(i) 80 percent of the median income of the State in which
the farmer or rancher resides; or
``(ii) 200 percent of the most recent annual Federal
Poverty Income Guidelines published by the Department of
Health and Human Services for the State.
``(3) Individual development account.--The term `individual
development account' means a savings account described in
subsection (b)(4)(A).
``(4) Qualified entity.--
``(A) In general.--The term `qualified entity' means--
``(i) 1 or more organizations--
``(I) described in section 501(c)(3) of the Internal
Revenue Code of 1986; and
``(II) exempt from taxation under section 501(a) of such
Code; or
``(ii) a State, local, or tribal government submitting an
application jointly with an organization described in clause
(i).
``(B) No prohibition on collaboration.--An organization
described in subparagraph (A)(i) may collaborate with a
financial institution or for-profit community development
corporation to carry out the purposes of this section.
``(b) Pilot Program.--
``(1) In general.--The Secretary shall establish a pilot
program to be known as the `New Farmer Individual Development
Accounts Pilot Program' under which the Secretary shall work
through qualified entities to establish demonstration
programs--
``(A) of at least 5 years in duration; and
``(B) in at least 15 States.
``(2) Coordination.--The Secretary shall operate the pilot
program through, and in coordination with the farm loan
programs of, the Farm Service Agency.
``(3) Reserve funds.--
``(A) In general.--A qualified entity carrying out a
demonstration program under this section shall establish a
reserve fund
[[Page H4541]]
consisting of a non-Federal match of 50 percent of the total
amount of the grant awarded to the demonstration program
under this section.
``(B) Federal funds.--After the qualified entity has
deposited the non-Federal matching funds described in
subparagraph (A) in the reserve fund, the Secretary shall
provide the total amount of the grant awarded under this
section to the demonstration program for deposit in the
reserve fund.
``(C) Use of funds.--Of the funds deposited under
subparagraph (B) in the reserve fund established for a
demonstration program, the qualified entity carrying out the
demonstration program--
``(i) may use up to 10 percent for administrative expenses;
and
``(ii) shall use the remainder in making matching awards
described in paragraph (4)(B)(ii)(I).
``(D) Interest.--Any interest earned on amounts in a
reserve fund established under subparagraph (A) may be used
by the qualified entity as additional matching funds for, or
to administer, the demonstration program.
``(E) Guidance.--The Secretary shall issue guidance
regarding the investment requirements of reserve funds
established under this paragraph.
``(F) Reversion.--On the date on which all funds remaining
in any individual development account established by a
qualified entity have reverted under paragraph (5)(B)(ii) to
the reserve fund established by the qualified entity, there
shall revert to the Treasury of the United States a
percentage of the amount (if any) in the reserve fund equal
to--
``(i) the amount of Federal funds deposited in the reserve
fund under subparagraph (B) that were not used for
administrative expenses; divided by
``(ii) the total amount of funds deposited in the reserve
fund.
``(4) Individual development accounts.--
``(A) In general.--A qualified entity receiving a grant
under this section shall establish and administer individual
development accounts for eligible participants.
``(B) Contract requirements.--To be eligible to receive
funds under this section from a qualified entity, an eligible
participant shall enter into a contract with only 1 qualified
entity under which--
``(i) the eligible participant agrees--
``(I) to deposit a certain amount of funds of the eligible
participant in a personal savings account, as prescribed by
the contractual agreement between the eligible participant
and the qualified entity;
``(II) to use the funds described in subclause (I) only for
1 or more eligible expenditures described in paragraph
(5)(A); and
``(III) to complete financial training; and
``(ii) the qualified entity agrees--
``(I) to deposit, not later than 1 month after an amount is
deposited pursuant to clause (i)(I), at least a 100-percent,
and up to a 200-percent, match of that amount into the
individual development account established for the eligible
participant; and
``(II) with uses of funds proposed by the eligible
participant.
``(C) Limitation.--
``(i) In general.--A qualified entity administering a
demonstration program under this section may provide not more
than $6,000 for each fiscal year in matching funds to the
individual development account established by the qualified
entity for an eligible participant.
``(ii) Treatment of amount.--An amount provided under
clause (i) shall not be considered to be a gift or loan for
mortgage purposes.
``(5) Eligible expenditures.--
``(A) In general.--An eligible expenditure described in
this subparagraph is an expenditure--
``(i) to purchase farmland or make a down payment on an
accepted purchase offer for farmland;
``(ii) to make mortgage payments on farmland purchased
pursuant to clause (i), for up to 180 days after the date of
the purchase;
``(iii) to purchase breeding stock, fruit or nut trees, or
trees to harvest for timber; and
``(iv) for other similar expenditures, as determined by the
Secretary.
``(B) Timing.--
``(i) In general.--An eligible participant may make an
eligible expenditure at any time during the 2-year period
beginning on the date on which the last matching funds are
provided under paragraph (4)(B)(ii)(I) to the individual
development account established for the eligible participant.
``(ii) Unexpended funds.--At the end of the period
described in clause (i), any funds remaining in an individual
development account established for an eligible participant
shall revert to the reserve fund of the demonstration program
under which the account was established.
``(c) Applications.--
``(1) In general.--A qualified entity that seeks to carry
out a demonstration program under this section may submit to
the Secretary an application at such time, in such form, and
containing such information as the Secretary may prescribe.
``(2) Criteria.--In considering whether to approve an
application to carry out a demonstration program under this
section, the Secretary shall assess--
``(A) the degree to which the demonstration program
described in the application is likely to aid eligible
participants in successfully pursuing new farming
opportunities;
``(B) the experience and ability of the qualified entity to
responsibly administer the demonstration program;
``(C) the experience and ability of the qualified entity in
recruiting, educating, and assisting eligible participants to
increase economic independence and pursue or advance farming
opportunities;
``(D) the aggregate amount of direct funds from non-Federal
public sector and private sources that are formally committed
to the demonstration program as matching contributions;
``(E) the adequacy of the plan of the qualified entity to
provide information relevant to an evaluation of the
demonstration program; and
``(F) such other factors as the Secretary considers to be
appropriate.
``(3) Preferences.--In considering an application to
conduct a demonstration program under this section, the
Secretary shall give preference to an application from a
qualified entity that demonstrates--
``(A) a track record of serving clients targeted by the
program, including, as appropriate, socially disadvantaged
farmers or ranchers (as defined in section 355(e)(2)); and
``(B) expertise in dealing with financial management
aspects of farming.
``(4) Approval.--Not later than 1 year after the date of
enactment of this section, in accordance with this section,
the Secretary shall, on a competitive basis, approve such
applications to conduct demonstration programs as the
Secretary considers appropriate.
``(5) Term of authority.--If the Secretary approves an
application to carry out a demonstration program, the
Secretary shall authorize the applicant to carry out the
project for a period of 5 years, plus an additional 2 years
to make eligible expenditures in accordance with subsection
(b)(5)(B).
``(d) Grant Authority.--
``(1) In general.--The Secretary shall make a grant to a
qualified entity authorized to carry out a demonstration
program under this section.
``(2) Maximum amount of grants.--The aggregate amount of
grant funds provided to a demonstration program carried out
under this section shall not exceed $250,000.
``(3) Timing of grant payments.--The Secretary shall pay
the amounts awarded under a grant made under this section--
``(A) on the awarding of the grant; or
``(B) pursuant to such payment plan as the qualified entity
may specify.
``(e) Reports.--
``(1) Annual progress reports.--
``(A) In general.--Not later than 60 days after the end of
the calendar year in which the Secretary authorizes a
qualified entity to carry out a demonstration program under
this section, and annually thereafter until the conclusion of
the demonstration program, the qualified entity shall prepare
an annual report that includes, for the period covered by the
report--
``(i) an evaluation of the progress of the demonstration
program;
``(ii) information about the demonstration program,
including the eligible participants and the individual
development accounts that have been established; and
``(iii) such other information as the Secretary may
require.
``(B) Submission of reports.--A qualified entity shall
submit each report required under subparagraph (A) to the
Secretary.
``(2) Reports by the secretary.--Not later than 1 year
after the date on which all demonstration programs under this
section are concluded, the Secretary shall submit to Congress
a final report that describes the results and findings of all
reports and evaluations carried out under this section.
``(f) Annual Review.--The Secretary may conduct an annual
review of the financial records of a qualified entity--
``(1) to assess the financial soundness of the qualified
entity; and
``(2) to determine the use of grant funds made available to
the qualified entity under this section.
``(g) Regulations.--In carrying out this section, the
Secretary may promulgate regulations to ensure that the
program includes provisions for--
``(1) the termination of demonstration programs;
``(2) control of the reserve funds in the case of such a
termination;
``(3) transfer of demonstration programs to other qualified
entities; and
``(4) remissions from a reserve fund to the Secretary in a
case in which a demonstration program is terminated without
transfer to a new qualified entity.
``(h) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $5,000,000 for
each of fiscal years 2008 through 2012.''.
SEC. 5302. INVENTORY SALES PREFERENCES; LOAN FUND SET-ASIDES.
(a) Inventory Sales Preferences.--Section 335(c) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1985(c)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (B)--
(i) in the subparagraph heading, by inserting ``; socially
disadvantaged farmer or rancher'' after ``or rancher'';
(ii) in clause (i), by inserting `` or a socially
disadvantaged farmer or rancher'' after ``or rancher'';
(iii) in clause (ii), by inserting ``or socially
disadvantaged farmer or rancher'' after ``or rancher'';
[[Page H4542]]
(iv) in clause (iii), by inserting ``or a socially
disadvantaged farmer or rancher'' after ``or rancher''; and
(v) in clause (iv), by striking ``and ranchers'' and
inserting ``or ranchers and socially disadvantaged farmers or
ranchers''; and
(B) in subparagraph (C), by inserting ``or a socially
disadvantaged farmer or rancher'' after ``or rancher'';
(2) in paragraph (5)(B)--
(A) in clause (i)--
(i) in the clause heading, by inserting ``; socially
disadvantaged farmer or rancher'' after ``or rancher'';
(ii) by inserting ``or a socially disadvantaged farmer or
rancher'' after ``a beginning farmer or rancher''; and
(iii) by inserting ``or the socially disadvantaged farmer
or rancher'' after ``the beginning farmer or rancher''; and
(B) in clause (ii)--
(i) in the matter preceding subclause (I), by inserting
``or a socially disadvantaged farmer or rancher'' after ``or
rancher''; and
(ii) in subclause (II), by inserting ``or the socially
disadvantaged farmer or rancher'' after ``or rancher''; and
(3) in paragraph (6)--
(A) in subparagraph (A), by inserting ``or a socially
disadvantaged farmer or rancher'' after ``or rancher''; and
(B) in subparagraph (C)--
(i) in clause (i)(I), by striking ``and ranchers'' and
inserting ``or ranchers and socially disadvantaged farmers or
ranchers''; and
(ii) in clause (ii), by inserting ``or socially
disadvantaged farmers or ranchers'' after ``or ranchers''.
(b) Loan Fund Set-Asides.--Section 346(b)(2) of such Act (7
U.S.C. 1994(b)(2)) is amended--
(1) in subparagraph (A)--
(A) in clause (i)--
(i) in subclause (I), by striking ``70 percent'' and
inserting ``an amount that is not less than 75 percent of the
total amount''; and
(ii) in subclause (II)--
(I) in the subclause heading, by inserting ``; joint
financing arrangements'' after ``payment loans'';
(II) by striking ``60 percent'' and inserting ``an amount
not less than \2/3\ of the amount''; and
(III) by inserting ``and joint financing arrangements under
section 307(a)(3)(D)'' after ``section 310E''; and
(B) in clause (ii)(III), by striking ``2003 through 2007,
35 percent'' and inserting ``2008 through 2012, an amount
that is not less than 50 percent of the total amount''; and
(2) in subparagraph (B)(i), by striking ``25 percent'' and
inserting ``an amount that is not less than 40 percent of the
total amount''.
SEC. 5303. LOAN AUTHORIZATION LEVELS.
Section 346(b)(1) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1994(b)(1)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``$3,796,000,000 for each of fiscal years 2003 through 2007''
and inserting ``$4,226,000,000 for each of fiscal years 2008
through 2012''; and
(2) in subparagraph (A)--
(A) in the matter preceding clause (i), by striking
``$770,000,000'' and inserting ``$1,200,000,000'';
(B) in clause (i), by striking ``$205,000,000'' and
inserting ``$350,000,000''; and
(C) in clause (ii), by striking ``$565,000,000'' and
inserting ``$850,000,000''.
SEC. 5304. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES
OF CREDIT.
Subtitle D of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981-2008r) is amended by inserting after
section 344 the following:
``SEC. 345. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES
OF CREDIT.
``(a) In General.--In making or insuring a farm loan under
subtitle A or B, the Secretary shall establish a plan and
promulgate regulations (including performance criteria) that
promote the goal of transitioning borrowers to private
commercial credit and other sources of credit in the shortest
period of time practicable.
``(b) Coordination.--In carrying out this section, the
Secretary shall integrate and coordinate the transition
policy described in subsection (a) with--
``(1) the borrower training program established by section
359;
``(2) the loan assessment process established by section
360;
``(3) the supervised credit requirement established by
section 361;
``(4) the market placement program established by section
362; and
``(5) other appropriate programs and authorities, as
determined by the Secretary.''.
SEC. 5305. EXTENSION OF THE RIGHT OF FIRST REFUSAL TO
REACQUIRE HOMESTEAD PROPERTY TO IMMEDIATE
FAMILY MEMBERS OF BORROWER-OWNER.
Section 352(c)(4)(B) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2000(c)(4)(B)) is amended--
(1) in the 1st sentence, by striking ``, the borrower-
owner'' inserting ``of a borrower-owner who is a socially
disadvantaged farmer or rancher (as defined in section
355(e)(2)), the borrower-owner or a member of the immediate
family of the borrower-owner''; and
(2) in the 2nd sentence, by inserting ``or immediate family
member, as the case may be,'' before ``from''.
SEC. 5306. RURAL DEVELOPMENT AND FARM LOAN PROGRAM
ACTIVITIES.
Subtitle D of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981-2008r) is amended by inserting after
section 364 the following:
``SEC. 365. RURAL DEVELOPMENT AND FARM LOAN PROGRAM
ACTIVITIES.
``The Secretary may not complete a study of, or enter into
a contract with a private party to carry out, without
specific authorization in a subsequent Act of Congress, a
competitive sourcing activity of the Secretary, including
support personnel of the Department of Agriculture, relating
to rural development or farm loan programs.''.
Subtitle E--Farm Credit
SEC. 5401. FARM CREDIT SYSTEM INSURANCE CORPORATION.
(a) In General.--Section 1.12(b) of the Farm Credit Act of
1971 (12 U.S.C. 2020(b)) is amended--
(1) in the first sentence, by striking ``Each Farm'' and
inserting the following;
``(1) In general.--Each Farm''; and
(2) by striking the second sentence and inserting the
following:
``(2) Computation.--The assessment on any association or
other financing institution described in paragraph (1) for
any period shall be computed in an equitable manner, as
determined by the Corporation.''.
(b) Rules and Regulations.--Section 5.58(10) of such Act
(12 U.S.C. 2277a-7(10)) is amended by inserting ``and section
1.12(b)'' after ``part''.
SEC. 5402. TECHNICAL CORRECTION.
Section 3.3(b) of the Farm Credit Act of 1971 (12 U.S.C.
2124(b)) is amended in the first sentence by striking ``per''
and inserting ``par''.
SEC. 5403. BANK FOR COOPERATIVES VOTING STOCK.
(a) In General.--Section 3.3(c) of the Farm Credit Act of
1971 (12 U.S.C. 2124(c)) is amended by striking ``and (ii)''
and inserting ``(ii) other categories of persons and entities
described in sections 3.7 and 3.8 eligible to borrow from the
bank, as determined by the bank's board of directors; and
(iii)''.
(b) Conforming Amendments.--Section 4.3A(c)(1)(D) of such
Act (12 U.S.C. 2154a(c)(1)(D)) is amended by redesignating
clauses (ii) and (iii) as clauses (iii) and (iv),
respectively, and inserting after clause (i) the following:
``(ii) persons and entities eligible to borrow from the
banks for cooperatives, as described in section
3.3(c)(ii);''.
SEC. 5404. PREMIUMS.
(a) Amount in Fund Not Exceeding Secure Base Amount.--
Section 5.55(a) of the Farm Credit Act of 1971 (12 U.S.C.
2277a-4(a)) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``paragraph (2)'' and inserting ``paragraph
(3)''; and
(ii) by striking ``annual'' ; and
(B) by striking subparagraphs (A) through (D) and inserting
the following:
``(A) the average outstanding insured obligations issued by
the bank for the calendar year, after deducting from the
obligations the percentages of the guaranteed portions of
loans and investments described in paragraph (2), multiplied
by 0.0020; and
``(B) the product obtained by multiplying--
``(i) the sum of--
``(I) the average principal outstanding for the calendar
year on loans made by the bank that are in nonaccrual status;
and
``(II) the average amount outstanding for the calendar year
of other-than-temporarily impaired investments made by the
bank; by
``(ii) 0.0010.'';
(2) by striking paragraph (4);
(3) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively;
(4) by inserting after paragraph (1) the following:
``(2) Deductions from average outstanding insured
obligations.--The average outstanding insured obligations
issued by the bank for the calendar year referred to in
paragraph (1)(A) shall be reduced by deducting from the
obligations the sum of (as determined by the Corporation)--
``(A) 90 percent of each of--
``(i) the average principal outstanding for the calendar
year on the guaranteed portions of Federal government-
guaranteed loans made by the bank that are in accrual status;
and
``(ii) the average amount outstanding for the calendar year
of the guaranteed portions of Federal government-guaranteed
investments made by the bank that are not permanently
impaired; and
``(B) 80 percent of each of--
``(i) the average principal outstanding for the calendar
year on the guaranteed portions of State government-
guaranteed loans made by the bank that are in accrual status;
and
``(ii) the average amount outstanding for the calendar year
of the guaranteed portions of State government-guaranteed
investments made by the bank that are not permanently
impaired.'';
(5) in paragraph (3) (as so redesignated by paragraph (3)
of this subsection), by striking ``annual''; and
(6) in paragraph (4) (as so redesignated by paragraph (3)
of this subsection)--
(A) in the paragraph heading, by inserting ``or
investments'' after ``loans''; and
(B) in the matter preceding subparagraph (A), by striking
``As used'' and all that follows through ``guaranteed--'' and
inserting ``In this section, the term `government-
guaranteed', when applied to a loan or an investment, means a
loan, credit, or investment, or
[[Page H4543]]
portion of a loan, credit, or investment, that is
guaranteed--''.
(b) Amount in Fund Exceeding Secure Base Amount.--Section
5.55(b) of such Act (12 U.S.C. 2277a-4(b)) is amended by
striking ``annual''.
(c) Secure Base Amount.--Section 5.55(c) of such Act (12
U.S.C. 2277a-4(c)) is amended--
(1) by striking ``For purposes'' and inserting the
following:
``(1) In general.--For purposes'';
(2) by striking ``(adjusted downward'' and all that follows
through ``by the Corporation)'' and inserting ``(as adjusted
under paragraph (2))''; and
(3) by adding at the end the following:
``(2) Adjustment.--The aggregate outstanding insured
obligations of all insured System banks under paragraph (1)
shall be adjusted downward to exclude an amount equal to the
sum of (as determined by the corporation)--
``(A) 90 percent of each of--
``(i) the guaranteed portions of principal outstanding on
Federal government-guaranteed loans in accrual status made by
the banks; and
``(ii) the guaranteed portions of the amount of Federal
government-guaranteed investments made by the banks that are
not permanently impaired; and
``(B) 80 percent of each of--
``(i) the guaranteed portions of principal outstanding on
State government-guaranteed loans in accrual status made by
the banks; and
``(ii) the guaranteed portions of the amount of State
government-guaranteed investments made by the banks that are
not permanently impaired.''.
(d) Determination of Loan and Investment Amounts.--Section
5.55(d) of such Act (12 U.S.C. 2277a-4(d)) is amended--
(1) in the subsection heading, by striking ``Principal
Outstanding'' and inserting ``Loan and Investment Amounts'';
(2) in the matter preceding paragraph (1), by striking
``For the purpose'' and all that follows through ``made--''
and inserting ``For the purpose of subsections (a) and (c),
the principal outstanding on all loans made by an insured
System bank, and the amount outstanding on all investments
made by an insured System bank, shall be determined based
on--'';
(3) in each of paragraphs (1), (2), and (3), by inserting
``all loans or investments made'' before ``by'' the first
place it appears; and
(4) in each of paragraphs (1) and (2), by inserting ``or
investments'' after ``that is able to make such loans'' each
place it appears.
(e) Allocation to System Institutions of Excess Reserves.--
Section 5.55(e) of such Act (12 U.S.C. 2277a-4(e)) is
amended--
(1) in paragraph (3), by striking ``the average secure base
amount for the calendar year (as calculated on an average
daily balance basis)'' and inserting ``the secure base
amount'';
(2) in paragraph (4), by striking subparagraph (B) and
inserting the following:
``(B) there shall be credited to the allocated insurance
reserves account of each insured system bank an amount that
bears the same ratio to the total amount (less any amount
credited under subparagraph (A)) as--
``(i) the average principal outstanding for the calendar
year on insured obligations issued by the bank (after
deducting from the principal the percentages of the
guaranteed portions of loans and investments described in
subsection (a)(2)); bears to
``(ii) the average principal outstanding for the calendar
year on insured obligations issued by all insured System
banks (after deducting from the principal the percentages of
the guaranteed portions of loans and investments described in
subsection (a)(2)).''; and
(3) in paragraph (6)--
(A) in subparagraph (A)--
(i) in the matter preceding clause (i), by striking
``beginning more'' and all that follows through ``January 1,
2005'';
(ii) by striking clause (i) and inserting the following:
``(i) subject to subparagraph (D), pay to each insured
System bank, in a manner determined by the Corporation, an
amount equal to the balance in the Allocated Insurance
Reserves Account of the System bank; and''; and
(iii) in clause (ii)--
(I) by striking ``subparagraphs (C), (E), and (F)'' and
inserting ``subparagraphs (C) and (E)''; and
(II) by striking ``, of the lesser of--'' and all that
follows through the end of subclause (II) and inserting ``at
the time of the termination of the Financial Assistance
Corporation, of the balance in the Allocated Insurance
Reserves Account established under paragraph (1)(B).'';
(B) in subparagraph (C)--
(i) in clause (i), by striking ``(in addition to the
amounts described in subparagraph (F)(ii))''; and
(ii) by striking clause (ii) and inserting the following:
``(ii) Termination of account.--On disbursement of an
amount equal to $56,000,000, the Corporation shall--
``(I) close the account established under paragraph (1)(B);
and
``(II) transfer any remaining funds in the Account to the
remaining Allocated Insurance Reserves Accounts in accordance
with paragraph (4)(B) for the calendar year in which the
transfer occurs.''; and
(C) by striking subparagraph (F).
SEC. 5405. CERTIFICATION OF PREMIUMS.
(a) Filing Certified Statement.--Section 5.56 of the Farm
Credit Act of 1971 (12 U.S.C. 2277a-5) is amended by striking
subsection (a) and inserting the following:
``(a) Filing Certified Statement.--On a date to be
determined in the sole discretion of the Board of Directors
of the Corporation, each insured System bank that became
insured before the beginning of the period for which premiums
are being assessed (referred to in this section as the
`period') shall file with the Corporation a certified
statement showing--
``(1) the average outstanding insured obligations for the
period issued by the bank;
``(2)(A) the average principal outstanding for the period
on the guaranteed portion of Federal government-guaranteed
loans that are in accrual status; and
``(B) the average amount outstanding for the period of
Federal government-guaranteed investments that are not
permanently impaired (as defined in section 5.55(a)(4));
``(3)(A) the average principal outstanding for the period
on State government-guaranteed loans that are in accrual
status; and
``(B) the average amount outstanding for the period of
State government-guaranteed investments that are not
permanently impaired (as defined in section 5.55(a)(4));
``(4)(A) the average principal outstanding for the period
on loans that are in nonaccrual status; and
``(B) the average amount outstanding for the period of
other-than-temporarily impaired investments; and
``(5) the amount of the premium due the Corporation from
the bank for the period.''.
(b) Premium Payments.--Section 5.56 of such Act (12 U.S.C.
2277a-5) is amended by striking subsection (c) and inserting
the following:
``(c) Premium Payments.--
``(1) In general.--Except as provided in paragraph (2),
each insured System bank shall pay to the Corporation the
premium payments required under subsection (a), not more
frequently than once in each calendar quarter, in such manner
and at such 1 or more times as the Board of Directors shall
prescribe.
``(2) Premium amount.--The amount of the premium shall be
established not later than 60 days after filing the certified
statement specifying the amount of the premium.''.
(c) Subsequent Premium Payments.--Section 5.56 of such Act
(12 U.S.C. 2277a-5) is amended--
(1) by striking subsection (d); and
(2) by redesignating subsection (e) as subsection (d).
SEC. 5406. RURAL UTILITY LOANS.
(a) Definition of Qualified Loan.--Section 8.0(9) of the
Farm Credit Act of 1971 (12 U.S.C. 2279aa(9)) is amended--
(1) in subparagraph (A)(iii), by striking ``or'' at the
end;
(2) in subparagraph (B)(ii), by striking the period at the
end and inserting ``; or''; and
(3) by adding at the end the following:
``(C) that is a loan, or an interest in a loan, for an
electric or telephone facility by a cooperative lender to a
borrower that has received, or is eligible to receive, a loan
under the Rural Electrification Act of 1936 (7 U.S.C. 901 et
seq.).''.
(b) Guarantee of Qualified Loans.--Section 8.6(a)(1) of
such Act (12 U.S.C. 2279aa-6(a)(1)) is amended by inserting
``applicable'' before ``standards'' each place it appears in
subparagraphs (A) and (B)(i).
(c) Standards for Qualified Loans.--Section 8.8 of such Act
(12 U.S.C. 2279aa-8) is amended--
(1) in subsection (a)--
(A) by striking the first sentence and inserting the
following:
``(1) In general.--The Corporation shall establish
underwriting, security appraisal, and repayment standards for
qualified loans taking into account the nature, risk profile,
and other differences between different categories of
qualified loans.
``(2) Supervision, examination, and report of condition.--
The standards shall be subject to the authorities of the Farm
Credit Administration under section 8.11.''; and
(B) in the last sentence, by striking ``In establishing''
and inserting the following:
``(3) Mortgage loans.--In establishing'';
(2) in subsection (b)--
(A) in the matter preceding paragraph (1), by inserting
``with respect to loans secured by agricultural real estate''
after ``subsection (a)''; and
(B) in paragraph (5)--
(i) by striking ``borrower'' the first place it appears and
inserting ``farmer or rancher''; and
(ii) by striking ``site'' and inserting ``farm or ranch'';
(3) in subsection (c)(1), by inserting ``secured by
agricultural real estate'' after ``A loan'';
(4) by striking subsection (d); and
(5) by redesignating subsection (e) as subsection (d).
(d) Risk-Based Capital Levels.--Section 8.32(a)(1) of such
Act (12 U.S.C. 2279bb-1(a)(1)) is amended--
(1) by striking ``With respect'' and inserting the
following:
``(A) In general.--With respect''; and
(2) by adding at the end the following:
``(B) Rural utility loans.--With respect to securities
representing an interest in, or obligation backed by, a pool
of qualified loans described in section 8.0(9)(C) owned or
guaranteed by the Corporation, losses occur
[[Page H4544]]
at a rate of default and severity reasonably related to risks
in electric and telephone facility loans (as applicable), as
determined by the Director.''.
SEC. 5407. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN
DISTRICT ASSOCIATIONS.
(a) In General.--The Farm Credit Act of 1971 is amended by
inserting after section 7.6 (12 U.S.C. 2279b) the following:
``SEC. 7.7. EQUALIZATION OF LOAN-MAKING POWERS OF CERTAIN
DISTRICT ASSOCIATIONS.
``(a) Equalization of Loan-Making Powers.--
``(1) In general.--
``(A) Federal land bank associations.--Subject to paragraph
(2), any association that owns a Federal land bank
association authorized as of January 1, 2007, to make long-
term loans under title I in its chartered territory within
the geographic area described in subsection (b) may make
short- and intermediate-term loans and otherwise operate as a
production credit association under title II within that same
chartered territory.
``(B) Production credit associations.--Subject to paragraph
(2), any association that under its charter has title I
lending authority and that owns a production credit
association authorized as of January 1, 2007, to make short-
and intermediate-term loans under title II in the geographic
area described in subsection (b) may make long-term loans and
otherwise operate, directly or through a subsidiary
association, as a Federal land bank association or Federal
land credit association under title I in the geographic area.
``(C) Farm credit bank.--Notwithstanding section 5.17(a),
the Farm Credit Bank with which any association had a written
financing agreement as of January 1, 2007, may make loans and
extend other comparable financial assistance with respect to,
and may purchase, any loans made under the new authority
provided under subparagraph (A) or (B) by an association
exercising such authority.
``(2) Required approvals.--An association may exercise the
additional authority provided for in paragraph (1) only after
the exercise of the authority is approved by--
``(A) the board of directors of the association; and
``(B) a majority of the voting stockholders of the
association (or, if the association is a subsidiary of
another association, the voting stockholders of the parent
association) voting, in person or by proxy, at a duly
authorized meeting of stockholders in accordance with the
process described in section 7.11.
``(b) Applicability.--This section applies only to
associations the chartered territory of which was within the
geographic area served by the Federal intermediate credit
bank immediately prior to its merger with a Farm Credit Bank
under section 410(e)(1) of the Agricultural Credit Act of
1987 (12 U.S.C. 2011 note; Public Law 100-233).''.
(b) Charter Amendments.--Section 5.17(a) of the Farm Credit
Act of 1971 (12 U.S.C. 2252(a)) is amended by adding at the
end the following:
``(15)(A) Approve amendments to the charters of
institutions of the Farm Credit System to implement the
equalization of loan-making powers of a Farm Credit System
association under section 7.7.
``(B) Amendments described in subparagraph (A) to the
charters of an association and the related Farm Credit Bank
shall be approved by the Farm Credit Administration, subject
to any conditions of approval imposed, by not later than 30
days after the date on which the Farm Credit Administration
receives all approvals required by section 7.7(a)(2).''.
(c) Conforming Amendments.--
(1) Section 5.17(a)(2) of the Farm Credit Act of 1971 (12
U.S.C. 2252(a)(2)) is amended--
(A) by striking ``(2)(A)'' and inserting ``(2)''; and
(B) by striking subparagraphs (B) and (C).
(2) Section 410 of the 1987 act.--Section 410(e)(1)(A)(iii)
of the Agricultural Credit Act of 1987 (12 U.S.C. 2011 note;
Public Law 100-233) is amended by inserting ``(except section
7.7 of that Act)'' after ``(12 U.S.C. 2001 et seq.)''.
(3) Section 401 of the 1992 act.--Section 401(b) of the
Farm Credit Banks and Associations Safety and Soundness Act
of 1992 (12 U.S.C. 2011 note; Public Law 102-552) is
amended--
(A) by inserting ``(except section 7.7 of the Farm Credit
Act of 1971)'' after ``provision of law''; and
(B) by striking ``, subject to such limitations'' and all
that follows through the end of the paragraph and inserting a
period.
(d) Effective Date.--The amendments made by this section
take effect on January 1, 2010.
Subtitle F--Miscellaneous
SEC. 5501. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND.
The first section of Public Law 91-229 (25 U.S.C. 488) is
amended--
(1) by striking ``That the Secretary'' and inserting the
following:
``SECTION 1. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LAND.
``(a) In General.--The Secretary''; and
(2) by adding at the end the following:
``(b) Highly Fractionated Land.--
``(1) In general.--Subject to paragraph (2), the Secretary
of Agriculture may make and insure loans in accordance with
section 309 of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1929) to eligible purchasers of highly
fractionated land pursuant to section 205(c) of the Indian
Land Consolidation Act (25 U.S.C. 2204(c)).
``(2) Exclusion.--Section 4 shall not apply to trust land,
restricted tribal land, or tribal corporation land that is
mortgaged in accordance with paragraph (1).''.
TITLE VI--RURAL DEVELOPMENT
Subtitle A--Consolidated Farm and Rural Development Act
SEC. 6001. WATER, WASTE DISPOSAL, AND WASTEWATER FACILITY
GRANTS.
Section 306(a)(2)(B)(vii) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) is
amended by striking ``2002 through 2007'' and inserting
``2008 through 2012''.
SEC. 6002. SEARCH GRANTS.
(a) In General.--Section 306(a)(2) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1926(a)(2)) is amended by
adding at the end the following:
``(C) Special evaluation assistance for rural communities
and households program.--
``(i) In general.--The Secretary may establish the Special
Evaluation Assistance for Rural Communities and Households
(SEARCH) program, to make predevelopment planning grants for
feasibility studies, design assistance, and technical
assistance, to financially distressed communities in rural
areas with populations of 2,500 or fewer inhabitants for
water and waste disposal projects described in paragraph (1),
this paragraph, and paragraph (24).
``(ii) Terms.--
``(I) Documentation.--With respect to grants made under
this subparagraph, the Secretary shall require the lowest
amount of documentation practicable.
``(II) Matching.--Notwithstanding any other provisions in
this subsection, the Secretary may fund up to 100 percent of
the eligible costs of grants provided under this
subparagraph, as determined by the Secretary.
``(iii) Funding.--The Secretary may use not more than 4
percent of the total amount of funds made available for a
fiscal year for water, waste disposal, and essential
community facility activities under this title to carry out
this subparagraph.
``(iv) Relationship to other authority.--The funds and
authorities provided under this subparagraph are in addition
to any other funds or authorities the Secretary may have to
carry out activities described in clause (i).''.
(b) Conforming Amendment.--Subtitle D of title VI of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C.
2009ee et seq.) is repealed.
SEC. 6003. RURAL BUSINESS OPPORTUNITY GRANTS.
Section 306(a)(11)(D) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(11)(D)) is amended by
striking ``1996 through 2007'' and inserting ``2008 through
2012''.
SEC. 6004. CHILD DAY CARE FACILITY GRANTS, LOANS, AND LOAN
GUARANTEES.
Section 306(a)(19)(C)(ii) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1926(a)(19)(C)(ii)) is
amended by striking ``April'' and inserting ``June''.
SEC. 6005. COMMUNITY FACILITY GRANTS TO ADVANCE BROADBAND.
Section 306(a)(20)(E) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(20)(E)) is amended--
(1) by striking ``state'' and inserting ``State''; and
(2) by striking ``dial-up Internet access or''.
SEC. 6006. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.
Section 306(a)(22)(C) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(22)(C)) is amended by
striking ``$15,000,000 for fiscal year 2003'' and inserting
``$25,000,000 for fiscal year 2008''.
SEC. 6007. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY
FACILITIES.
Section 306(a)(25) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)(25)) is amended--
(1) in subparagraph (A)--
(A) by striking ``tribal colleges and universities'' and
inserting ``an entity that is a Tribal College or
University''; and
(B) by striking ``tribal college or university'' and
inserting ``Tribal College or University'';
(2) by striking subparagraph (B) and inserting the
following:
``(B) Federal share.--The Secretary shall establish the
maximum percentage of the cost of the facility that may be
covered by a grant under this paragraph, except that the
Secretary may not require non-Federal financial support in an
amount that is greater than 5 percent of the total cost of
the facility.''; and
(3) in subparagraph (C), by striking ``2003 through 2007''
and inserting ``2008 through 2012''.
SEC. 6008. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE
GRANT PROGRAM.
Section 306A(i)(2) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926a(i)(2)) is amended by striking
``2003 through 2007'' and inserting ``2008 through 2012''.
SEC. 6009. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN
ALASKA.
(a) In General.--Section 306D(d)(1) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1926d(d)(1)) is
amended by striking ``2001 through 2007'' and inserting
``2008 through 2012''.
[[Page H4545]]
(b) Rural Communities Assistance.--Section 4009 of the
Solid Waste Disposal Act (42 U.S.C. 6949) is amended by
adding at the end the following:
``(e) Additional Appropriations.--
``(1) In general.--There are authorized to be appropriated
to carry out this section for the Denali Commission to
provide assistance to municipalities in the State of Alaska
$1,500,000 for each of fiscal years 2008 through 2012.
``(2) Administration.--For the purpose of carrying out this
subsection, the Denali Commission shall--
``(A) be considered a State; and
``(B) comply with all other requirements and limitations of
this section.''.
SEC. 6010. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE
CONSTRUCTION, REFURBISHING, AND SERVICING OF
INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS
IN RURAL AREAS FOR INDIVIDUALS WITH LOW OR
MODERATE INCOMES.
Section 306E of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926e) is amended--
(1) in subsection (b)(2)(C), by striking ``$8,000'' and
inserting ``$11,000''; and
(2) in subsection (d), by striking ``2003 through 2007''
and inserting ``2008 through 2012''.
SEC. 6011. INTEREST RATES FOR WATER AND WASTE DISPOSAL
FACILITIES LOANS.
Section 307(a)(3) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1927(a)(3)) is amended by adding at
the end the following:
``(E) Interest rates for water and waste disposal
facilities loans.--
``(i) In general.--Except as provided in clause (ii) and
notwithstanding subparagraph (A), in the case of a direct
loan for a water or waste disposal facility--
``(I) in the case of a loan that would be subject to the 5
percent interest rate limitation under subparagraph (A), the
Secretary shall establish the interest rate at a rate that is
equal to 60 percent of the current market yield for
outstanding municipal obligations with remaining periods to
maturity comparable to the average maturity of the loan,
adjusted to the nearest \1/8\ of 1 percent; and
``(II) in the case of a loan that would be subject to the 7
percent limitation under subparagraph (A), the Secretary
shall establish the interest rate at a rate that is equal to
80 percent of the current market yield for outstanding
municipal obligations with remaining periods to maturity
comparable to the average maturity of the loan, adjusted to
the nearest \1/8\ of 1 percent.
``(ii) Exception.--Clause (i) does not apply to a loan for
a specific project that is the subject of a loan that has
been approved, but not closed, as of the date of enactment of
this subparagraph.''.
SEC. 6012. COOPERATIVE EQUITY SECURITY GUARANTEE.
(a) In General.--Section 310B of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1932) is amended--
(1) by striking ``sec. 310B. (a)'' and inserting the
following:
``SEC. 310B. ASSISTANCE FOR RURAL ENTITIES.
``(a) Loans to Private Business Enterprises.--
``(1) Definitions.--In this subsection:'';
(2) in subsection (a)--
(A) by moving the second and fourth sentences so as to
appear as the second and first sentences, respectively;
(B) in the sentence beginning ``As used in this subsection,
the'' (as moved by subparagraph (A)), by striking ``As used
in this subsection, the'' and inserting the following:
``(A) Aquaculture.--The'';
(C) in the sentence beginning ``For the purposes of this
subsection, the'', by striking ``For the purposes of this
subsection, the'' and inserting the following:
``(B) Solar energy.--The'';
(D) in the sentence beginning ``The Secretary may also''--
(i) by striking ``The Secretary may also'' and inserting
the following:
``(2) Loan purposes.--The Secretary may'';
(ii) by inserting ``and private investment funds that
invest primarily in cooperative organizations'' after ``or
nonprofit'';
(iii) by striking ``of (1) improving'' and inserting ``of--
``(A) improving'';
(iv) by striking ``control, (2) the'' and inserting
``control;
``(B) the'';
(v) by striking ``areas, (3) reducing'' and inserting
``areas;
``(C) reducing'';
(vi) by striking ``areas, and (4) to'' and inserting
``areas; and
``(D) to'';
(E) in the sentence beginning ``Such loans,'', by striking
``Such loans,'' and inserting the following:
``(3) Loan guarantees.--Loans described in paragraph
(2),''; and
(F) in the last sentence, by striking ``No loan'' and
inserting the following:
``(4) Maximum amount of principal.--No loan''; and
(3) in subsection (g)--
(A) in paragraph (1), by inserting ``, including guarantees
described in paragraph (3)(A)(ii)'' before the period at the
end;
(B) in paragraph (3)(A)--
(i) by striking ``(A) In general.--The Secretary'' and
inserting the following:
``(A) Eligibility.--
``(i) In general.--The Secretary''; and
(ii) by adding at the end the following:
``(ii) Equity.--The Secretary may guarantee a loan made for
the purchase of preferred stock or similar equity issued by a
cooperative organization or a fund that invests primarily in
cooperative organizations, if the guarantee significantly
benefits 1 or more entities eligible for assistance for the
purposes described in subsection (a)(1), as determined by the
Secretary.''; and
(C) in paragraph (8)(A)(ii), by striking ``a project--''
and all that follows through the end of subclause (II) and
inserting ``a project that--
``(I)(aa) is in a rural area; and
``(bb) provides for the value-added processing of
agricultural commodities; or
``(II) significantly benefits 1 or more entities eligible
for assistance for the purposes described in subsection
(a)(1), as determined by the Secretary.''.
(b) Conforming Amendments.--
(1) Section 307(a)(6)(B) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1927(a)(6)(B)) is amended by
striking clause (ii) and inserting the following:
``(ii) section 310B(a)(2)(A); and''.
(2) Section 310B(g) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(g)) is amended by striking
``subsection (a)(1)'' each place it appears in paragraphs
(1), (6)(A)(iii), and (8)(C) and inserting ``subsection
(a)(2)(A)''.
(3) Section 333A(g)(1)(B) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1983a(g)(1)(B)) is amended by
striking ``section 310B(a)(1)'' and inserting ``section
310B(a)(2)(A)''.
(4) Section 381E(d)(3)(B) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2009d(d)(3)(B)) is amended by
striking ``section 310B(a)(1)'' and inserting ``section
310B(a)(2)(A)''.
SEC. 6013. RURAL COOPERATIVE DEVELOPMENT GRANTS.
(a) Eligibility.--Section 310B(e)(5) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1932(e)(5)) is
amended--
(1) in subparagraph (A), by striking ``administering a
nationally coordinated, regionally or State-wide operated
project'' and inserting ``carrying out activities to promote
and assist the development of cooperatively and mutually
owned businesses'';
(2) in subparagraph (B), by inserting ``to promote and
assist the development of cooperatively and mutually owned
businesses'' before the semicolon;
(3) by striking subparagraph (D);
(4) by redesignating subparagraph (E) as subparagraph (D);
(5) in subparagraph (D) (as so redesignated), by striking
``and'' at the end;
(6) by inserting after subparagraph (D) (as so
redesignated) the following:
``(E) demonstrate a commitment to--
``(i) networking with and sharing the results of the
efforts of the center with other cooperative development
centers and other organizations involved in rural economic
development efforts; and
``(ii) developing multiorganization and multistate
approaches to addressing the economic development and
cooperative needs of rural areas; and''; and
(7) in subparagraph (F), by striking ``providing greater
than'' and inserting ``providing''.
(b) Authority to Award Multiyear Grants.--Section 310B(e)
of the Consolidated Farm and Rural Development Act (7 U.S.C.
1932(e)) is amended by striking paragraph (6) and inserting
the following:
``(6) Grant period.--
``(A) In general.--A grant awarded to a center that has
received no prior funding under this subsection shall be made
for a period of 1 year.
``(B) Multiyear grants.--If the Secretary determines it to
be in the best interest of the program, the Secretary shall
award grants for a period of more than 1 year, but not more
than 3 years, to a center that has successfully met the
parameters described in paragraph (5), as determined by the
Secretary.''.
(c) Authority to Extend Grant Period.--Section 310B(e) of
the Consolidated Farm and Rural Development Act (7 U.S.C.
1932(e)) is amended--
(1) by redesignating paragraphs (7), (8), and (9) as
paragraphs (8), (9), and (12), respectively; and
(2) by inserting after paragraph (6) the following:
``(7) Authority to extend grant period.--The Secretary may
extend for 1 additional 12-month period the period in which a
grantee may use a grant made under this subsection.''.
(d) Cooperative Research Program.--Section 310B(e) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1932(e)) is amended by inserting after paragraph (9) (as
redesignated by subsection (c)(1)) the following:
``(10) Cooperative research program.--The Secretary shall
enter into a cooperative research agreement with 1 or more
qualified academic institutions in each fiscal year to
conduct research on the effects of all types of cooperatives
on the national economy.''.
(e) Addressing Needs of Minority Communities.--Section
310B(e) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1932(e)) is amended by inserting after paragraph (10)
(as added by subsection (d)) the following:
``(11) Addressing needs of minority communities.--
``(A) Definition of socially disadvantaged group.--In this
paragraph, the term
[[Page H4546]]
`socially disadvantaged group' has the meaning given the term
in section 355(e).
``(B) Reservation of funds.--
``(i) In general.--If the total amount appropriated under
paragraph (12) for a fiscal year exceeds $7,500,000, the
Secretary shall reserve an amount equal to 20 percent of the
total amount appropriated for grants for cooperative
development centers, individual cooperatives, or groups of
cooperatives--
``(I) that serve socially disadvantaged groups; and
``(II) a majority of the boards of directors or governing
boards of which are comprised of individuals who are members
of socially disadvantaged groups.
``(ii) Insufficient applications.--To the extent there are
insufficient applications to carry out clause (i), the
Secretary shall use the funds as otherwise authorized by this
subsection.''.
(f) Authorization of Appropriations.--Paragraph (12) of
section 310B(e) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(e)) (as redesignated by
subsection (c)(1)) is amended by striking ``1996 through
2007'' and inserting ``2008 through 2012''.
SEC. 6014. GRANTS TO BROADCASTING SYSTEMS.
Section 310B(f)(3) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(f)(3)) is amended by striking
``2002 through 2007'' and inserting ``2008 through 2012''.
SEC. 6015. LOCALLY OR REGIONALLY PRODUCED AGRICULTURAL FOOD
PRODUCTS.
Section 310B(g) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(g)) is amended by adding at
the end the following:
``(9) Locally or regionally produced agricultural food
products.--
``(A) Definitions.--In this paragraph:
``(i) Locally or regionally produced agricultural food
product.--The term `locally or regionally produced
agricultural food product' means any agricultural food
product that is raised, produced, and distributed in--
``(I) the locality or region in which the final product is
marketed, so that the total distance that the product is
transported is less than 400 miles from the origin of the
product; or
``(II) the State in which the product is produced.
``(ii) Underserved community.--The term `underserved
community' means a community (including an urban or rural
community and an Indian tribal community) that has, as
determined by the Secretary--
``(I) limited access to affordable, healthy foods,
including fresh fruits and vegetables, in grocery retail
stores or farmer-to-consumer direct markets; and
``(II) a high rate of hunger or food insecurity or a high
poverty rate.
``(B) Loan and loan guarantee program.--
``(i) In general.--The Secretary shall make or guarantee
loans to individuals, cooperatives, cooperative
organizations, businesses, and other entities to establish
and facilitate enterprises that process, distribute,
aggregate, store, and market locally or regionally produced
agricultural food products to support community development
and farm and ranch income.
``(ii) Requirement.--The recipient of a loan or loan
guarantee under clause (i) shall include in an appropriate
agreement with retail and institutional facilities to which
the recipient sells locally or regionally produced
agricultural food products a requirement to inform consumers
of the retail or institutional facilities that the consumers
are purchasing or consuming locally or regionally produced
agricultural food products.
``(iii) Priority.--In making or guaranteeing a loan under
clause (i), the Secretary shall give priority to projects
that have components benefitting underserved communities.
``(iv) Reports.--Not later than 2 years after the date of
enactment of this paragraph and annually thereafter, the
Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that describes
projects carried out using loans or loan guarantees made
under clause (i), including--
``(I) the characteristics of the communities served; and
``(II) resulting benefits.
``(v) Reservation of funds.--
``(I) In general.--For each of fiscal years 2008 through
2012, the Secretary shall reserve not less than 5 percent of
the funds made available to carry out this subsection to
carry out this subparagraph.
``(II) Availability of funds.--Funds reserved under
subclause (I) for a fiscal year shall be reserved until April
1 of the fiscal year.''.
SEC. 6016. APPROPRIATE TECHNOLOGY TRANSFER FOR RURAL AREAS.
Section 310B of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1932) is amended by adding at the end the
following:
``(i) Appropriate Technology Transfer for Rural Areas
Program.--
``(1) Definition of national nonprofit agricultural
assistance institution.--In this subsection, the term
`national nonprofit agricultural assistance institution'
means an organization that--
``(A) is described in section 501(c)(3) of the Internal
Revenue Code of 1986 and exempt from taxation under 501(a) of
that Code;
``(B) has staff and offices in multiple regions of the
United States;
``(C) has experience and expertise in operating national
agriculture technical assistance programs;
``(D) expands markets for the agricultural commodities
produced by producers through the use of practices that
enhance the environment, natural resource base, and quality
of life; and
``(E) improves the economic viability of agricultural
operations.
``(2) Establishment.--The Secretary shall establish a
national appropriate technology transfer for rural areas
program to assist agricultural producers that are seeking
information to--
``(A) reduce input costs;
``(B) conserve energy resources;
``(C) diversify operations through new energy crops and
energy generation facilities; and
``(D) expand markets for agricultural commodities produced
by the producers by using practices that enhance the
environment, natural resource base, and quality of life.
``(3) Implementation.--
``(A) In general.--The Secretary shall carry out the
program under this subsection by making a grant to, or
offering to enter into a cooperative agreement with, a
national nonprofit agricultural assistance institution.
``(B) Grant amount.--A grant made, or cooperative agreement
entered into, under subparagraph (A) shall provide 100
percent of the cost of providing information described in
paragraph (2).
``(4) Authorization of appropriations.--There are
authorized to be appropriated to carry out this subsection
$5,000,000 for each of fiscal years 2008 through 2012.''.
SEC. 6017. RURAL ECONOMIC AREA PARTNERSHIP ZONES.
Section 310B of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1932) (as amended by section 6016) is amended
by adding at the end the following:
``(j) Rural Economic Area Partnership Zones.--Effective
beginning on the date of enactment of this subsection through
September 30, 2012, the Secretary shall carry out those rural
economic area partnership zones administratively in effect on
the date of enactment of this subsection in accordance with
the terms and conditions contained in the memorandums of
agreement entered into by the Secretary for the rural
economic area partnership zones, except as otherwise provided
in this subsection.''.
SEC. 6018. DEFINITIONS.
(a) Rural Area.--Section 343(a) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1991(a)) is amended by
striking paragraph (13) and inserting the following:
``(13) Rural and rural area.--
``(A) In general.--Subject to subparagraphs (B) through
(G), the terms `rural' and `rural area' mean any area other
than--
``(i) a city or town that has a population of greater than
50,000 inhabitants; and
``(ii) any urbanized area contiguous and adjacent to a city
or town described in clause (i).
``(B) Water and waste disposal grants and direct and
guaranteed loans.--For the purpose of water and waste
disposal grants and direct and guaranteed loans provided
under paragraphs (1), (2), and (24) of section 306(a), the
terms `rural' and `rural area' mean a city, town, or
unincorporated area that has a population of no more than
10,000 inhabitants.
``(C) Community facility loans and grants.--For the purpose
of community facility direct and guaranteed loans and grants
under paragraphs (1), (19), (20), (21), and (24) of section
306(a), the terms `rural' and `rural area' mean any area
other than a city, town, or unincorporated area that has a
population of greater than 20,000 inhabitants.
``(D) Areas rural in character.--
``(i) Application.--This subparagraph applies to--
``(I) an urbanized area described in subparagraphs (A)(ii)
and (F) that--
``(aa) has 2 points on its boundary that are at least 40
miles apart; and
``(bb) is not contiguous or adjacent to a city or town that
has a population of greater than 150,000 inhabitants or an
urbanized area of such city or town; and
``(II) an area within an urbanized area described in
subparagraphs (A)(ii) and (F) that is within \1/4\-mile of a
rural area described in subparagraph (A).
``(ii) Determination.--Notwithstanding any other provision
of this paragraph, on the petition of a unit of local
government in an area described in clause (i) or on the
initiative of the Under Secretary for Rural Development, the
Under Secretary may determine that a part of an area
described in clause (i) is a rural area for the purposes of
this paragraph, if the Under Secretary finds that the part is
rural in character, as determined by the Under Secretary.
``(iii) Administration.--In carrying out this subparagraph,
the Under Secretary for Rural Development shall--
``(I) not delegate the authority to carry out this
subparagraph;
``(II) consult with the applicable rural development State
or regional director of the Department of Agriculture and the
governor of the respective State;
``(III) provide to the petitioner an opportunity to appeal
to the Under Secretary a determination made under this
subparagraph;
``(IV) release to the public notice of a petition filed or
initiative of the Under Secretary under this subparagraph not
later than 30 days after receipt of the petition or
[[Page H4547]]
the commencement of the initiative, as appropriate;
``(V) make a determination under this subparagraph not less
than 15 days, and not more than 60 days, after the release of
the notice under subclause (IV);
``(VI) submit to the Committee on Agriculture of the House
of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate an annual report on
actions taken to carry out this subparagraph; and
``(VII) terminate a determination under this subparagraph
that part of an area is a rural area on the date that data is
available for the next decennial census conducted under
section 141(a) of title 13, United States Code.
``(E) Exclusions.--Notwithstanding any other provision of
this paragraph, in determining which census blocks in an
urbanized area are not in a rural area (as defined in this
paragraph), the Secretary shall exclude any cluster of census
blocks that would otherwise be considered not in a rural area
only because the cluster is adjacent to not more than 2
census blocks that are otherwise considered not in a rural
area under this paragraph.
``(F) Urban area growth.--
``(i) Application.--This subparagraph applies to--
``(I) any area that--
``(aa) is a collection of census blocks that are contiguous
to each other;
``(bb) has a housing density that the Secretary estimates
is greater than 200 housing units per square mile; and
``(cc) is contiguous or adjacent to an existing boundary of
a rural area; and
``(II) any urbanized area contiguous and adjacent to a city
or town described in subparagraph (A)(i).
``(ii) Adjustments.--The Secretary may, by regulation only,
consider--
``(I) an area described in clause (i)(I) not to be a rural
area for purposes of subparagraphs (A) and (C); and
``(II) an area described in clause (i)(II) not to be a
rural area for purposes of subparagraph (C).
``(iii) Appeals.--A program applicant may appeal an
estimate made under clause (i)(I) based on appropriate data
for an area, as determined by the Secretary.
``(G) Hawaii and puerto rico.--Notwithstanding any other
provision of this paragraph, within the areas of the County
of Honolulu, Hawaii, and the Commonwealth of Puerto Rico, the
Secretary may designate any part of the areas as a rural area
if the Secretary determines that the part is not urban in
character, other than any area included in the Honolulu
Census Designated Place or the San Juan Census Designated
Place.''.
(b) Report.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall prepare and submit
to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that--
(1) assesses the various definitions of the term ``rural''
and ``rural area'' that are used with respect to programs
administered by the Secretary;
(2) describes the effects that the variations in those
definitions have on those programs;
(3) make recommendations for ways to better target funds
provided through rural development programs; and
(4) determines the effect of the amendment made by
subsection (a) on the level of rural development funding and
participation in those programs in each State.
SEC. 6019. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.
Section 378 of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2008m) is amended--
(1) in subsection (g)(1), by striking ``2003 through 2007''
and inserting ``2008 through 2012''; and
(2) in subsection (h), by striking ``the date that is 5
years after the date of enactment of this section'' and
inserting ``September 30, 2012''.
SEC. 6020. HISTORIC BARN PRESERVATION.
(a) Grant Priority.--Section 379A(c) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 2008o(c)) is
amended--
(1) in paragraph (2)--
(A) in subparagraphs (A) and (B), by striking ``a historic
barn'' each place it appears and inserting ``historic
barns''; and
(B) in subparagraph (C), by striking ``on a historic barn''
and inserting ``on historic barns (including surveys)'';
(2) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(3) by inserting after paragraph (2) the following:
``(3) Priority.--In making grants under this subsection,
the Secretary shall give the highest priority to funding
projects described in paragraph (2)(C).''.
(b) Authorization of Appropriations.--Section 379A(c)(5) of
the Consolidated Farm and Rural Development Act (7 U.S.C.
2008o(c)(5)) (as redesignated by subsection (a)(2)) is
amended by striking ``2002 through 2007'' and inserting
``2008 through 2012''.
SEC. 6021. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.
Section 379B(d) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2008p(d)) is amended by striking
``2002 through 2007'' and inserting ``2008 through 2012''.
SEC. 6022. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM.
Subtitle D of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981 et seq.) is amended by adding at the end
the following:
``SEC. 379E. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM.
``(a) Definitions.--In this section:
``(1) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(2) Microentrepreneur.--The term `microentrepreneur'
means an owner and operator, or prospective owner and
operator, of a rural microenterprise who is unable to obtain
sufficient training, technical assistance, or credit other
than under this section, as determined by the Secretary.
``(3) Microenterprise development organization.--The term
`microenterprise development organization' means an
organization that--
``(A) is--
``(i) a nonprofit entity;
``(ii) an Indian tribe, the tribal government of which
certifies to the Secretary that--
``(I) no microenterprise development organization serves
the Indian tribe; and
``(II) no rural microentrepreneur assistance program exists
under the jurisdiction of the Indian tribe; or
``(iii) a public institution of higher education;
``(B) provides training and technical assistance to rural
microentrepreneurs;
``(C) facilitates access to capital or another service
described in subsection (b) for rural microenterprises; and
``(D) has a demonstrated record of delivering services to
rural microentrepreneurs, or an effective plan to develop a
program to deliver services to rural microentrepreneurs, as
determined by the Secretary.
``(4) Microloan.--The term `microloan' means a business
loan of not more than $50,000 that is provided to a rural
microenterprise.
``(5) Program.--The term `program' means the rural
microentrepreneur assistance program established under
subsection (b).
``(6) Rural microenterprise.--The term `rural
microenterprise' means--
``(A) a sole proprietorship located in a rural area; or
``(B) a business entity with not more than 10 full-time-
equivalent employees located in a rural area.
``(b) Rural Microentrepreneur Assistance Program.--
``(1) Establishment.--The Secretary shall establish a rural
microentrepreneur assistance program to provide loans and
grants to support microentrepreneurs in the development and
ongoing success of rural microenterprises.
``(2) Purpose.--The purpose of the program is to provide
microentrepreneurs with--
``(A) the skills necessary to establish new rural
microenterprises; and
``(B) continuing technical and financial assistance related
to the successful operation of rural microenterprises.
``(3) Loans.--
``(A) In general.--The Secretary shall make loans to
microenterprise development organizations for the purpose of
providing fixed interest rate microloans to
microentrepreneurs for startup and growing rural
microenterprises.
``(B) Loan terms.--A loan made by the Secretary to a
microenterprise development organization under this paragraph
shall--
``(i) be for a term not to exceed 20 years; and
``(ii) bear an annual interest rate of at least 1 percent.
``(C) Loan loss reserve fund.--The Secretary shall require
each microenterprise development organization that receives a
loan under this paragraph to--
``(i) establish a loan loss reserve fund; and
``(ii) maintain the reserve fund in an amount equal to at
least 5 percent of the outstanding balance of such loans owed
by the microenterprise development organization, until all
obligations owed to the Secretary under this paragraph are
repaid.
``(D) Deferral of interest and principal.--The Secretary
may permit the deferral of payments on principal and interest
due on a loan to a microenterprise development organization
made under this paragraph for a 2-year period beginning on
the date the loan is made.
``(4) Grants.--
``(A) Grants to support rural microenterprise
development.--
``(i) In general.--The Secretary shall make grants to
microenterprise development organizations to--
``(I) provide training, operational support, business
planning, and market development assistance, and other
related services to rural microentrepreneurs; and
``(II) carry out such other projects and activities as the
Secretary determines appropriate to further the purposes of
the program.
``(ii) Selection.--In making grants under clause (i), the
Secretary shall--
``(I) place an emphasis on microenterprise development
organizations that serve microentrepreneurs that are located
in rural areas that have suffered significant outward
migration, as determined by the Secretary; and
``(II) ensure, to the maximum extent practicable, that
grant recipients include microenterprise development
organizations--
``(aa) of varying sizes; and
[[Page H4548]]
``(bb) that serve racially and ethnically diverse
populations.
``(B) Grants to assist microentrepreneurs.--
``(i) In general.--The Secretary shall make grants to
microenterprise development organizations to provide
marketing, management, and other technical assistance to
microentrepreneurs that--
``(I) received a loan from the microenterprise development
organization under paragraph (3); or
``(II) are seeking a loan from the microenterprise
development organization under paragraph (3).
``(ii) Maximum amount of grant.--A microenterprise
development organization shall be eligible to receive an
annual grant under this subparagraph in an amount equal to
not more than 25 percent of the total outstanding balance of
microloans made by the microenterprise development
organization under paragraph (3), as of the date the grant is
awarded.
``(C) Administrative expenses.--Not more than 10 percent of
a grant received by a microenterprise development
organization for a fiscal year under this paragraph may be
used to pay administrative expenses.
``(c) Administration.--
``(1) Cost share.--
``(A) Federal share.--Subject to subparagraph (B), the
Federal share of the cost of a project funded under this
section shall not exceed 75 percent.
``(B) Matching requirement.--As a condition of any grant
made under this subparagraph, the Secretary shall require the
microenterprise development organization to match not less
than 15 percent of the total amount of the grant in the form
of matching funds, indirect costs, or in-kind goods or
services.
``(C) Form of non-federal share.--The non-Federal share of
the cost of a project funded under this section may be
provided--
``(i) in cash (including through fees, grants (including
community development block grants), and gifts); or
``(ii) in the form of in-kind contributions.
``(2) Oversight.--At a minimum, not later than December 1
of each fiscal year, a microenterprise development
organization that receives a loan or grant under this section
shall provide to the Secretary such information as the
Secretary may require to ensure that assistance provided
under this section is used for the purposes for which the
loan or grant was made.
``(d) Funding.--
``(1) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out this
section, to remain available until expended--
``(A) $4,000,000 for each of fiscal years 2009 through
2011; and
``(B) $3,000,000 for fiscal year 2012.
``(2) Discretionary funding.--In addition to amounts made
available under paragraph (1), there are authorized to be
appropriated to carry out this section $40,000,000 for each
of fiscal years 2009 through 2012.''.
SEC. 6023. GRANTS FOR EXPANSION OF EMPLOYMENT OPPORTUNITIES
FOR INDIVIDUALS WITH DISABILITIES IN RURAL
AREAS.
Subtitle D of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981 et seq.) (as amended by section 6022) is
amended by adding at the end the following:
``SEC. 379F. GRANTS FOR EXPANSION OF EMPLOYMENT OPPORTUNITIES
FOR INDIVIDUALS WITH DISABILITIES IN RURAL
AREAS.
``(a) Definitions.--In this section:
``(1) Individual with a disability.--The term `individual
with a disability' means an individual with a disability (as
defined in section 3 of the Americans with Disabilities Act
of 1990 (42 U.S.C. 12102)).
``(2) Individuals with disabilities.--The term `individuals
with disabilities' means more than 1 individual with a
disability.
``(b) Grants.--The Secretary shall make grants to nonprofit
organizations, or to a consortium of nonprofit organizations,
to expand and enhance employment opportunities for
individuals with disabilities in rural areas.
``(c) Eligibility.--To be eligible to receive a grant under
this section, a nonprofit organization or consortium of
nonprofit organizations shall have--
``(1) a significant focus on serving the needs of
individuals with disabilities;
``(2) demonstrated knowledge and expertise in--
``(A) employment of individuals with disabilities; and
``(B) advising private entities on accessibility issues
involving individuals with disabilities;
``(3) expertise in removing barriers to employment for
individuals with disabilities, including access to
transportation, assistive technology, and other
accommodations; and
``(4) existing relationships with national organizations
focused primarily on the needs of rural areas.
``(d) Uses.--A grant received under this section may be
used only to expand or enhance--
``(1) employment opportunities for individuals with
disabilities in rural areas by developing national technical
assistance and education resources to assist small businesses
in a rural area to recruit, hire, accommodate, and employ
individuals with disabilities; and
``(2) self-employment and entrepreneurship opportunities
for individuals with disabilities in a rural area.
``(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $2,000,000 for
each of fiscal years 2008 through 2012.''.
SEC. 6024. HEALTH CARE SERVICES.
Subtitle D of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981 et seq.) (as amended by section 6023) is
amended by adding at the end the following:
``SEC. 379G. HEALTH CARE SERVICES.
``(a) Purpose.--The purpose of this section is to address
the continued unmet health needs in the Delta region through
cooperation among health care professionals, institutions of
higher education, research institutions, and other
individuals and entities in the region.
``(b) Definition of Eligible Entity.--In this section, the
term `eligible entity' means a consortium of regional
institutions of higher education, academic health and
research institutes, and economic development entities
located in the Delta region that have experience in
addressing the health care issues in the region.
``(c) Grants.--To carry out the purpose described in
subsection (a), the Secretary may award a grant to an
eligible entity for -
``(1) the development of -
``(A) health care services;
``(B) health education programs; and
``(C) health care job training programs; and
``(2) the development and expansion of public health-
related facilities in the Delta region to address
longstanding and unmet health needs of the region.
``(d) Use.--As a condition of the receipt of the grant, the
eligible entity shall use the grant to fund projects and
activities described in subsection (c), based on input
solicited from local governments, public health care
providers, and other entities in the Delta region.
``(e) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this
section, $3,000,000 for each of fiscal years 2008 through
2012.''.
SEC. 6025. DELTA REGIONAL AUTHORITY.
(a) Authorization of Appropriations.--Section 382M(a) of
the Consolidated Farm and Rural Development Act (7 U.S.C.
2009aa-12(a)) is amended by striking ``2001 through 2007''
and inserting ``2008 through 2012''.
(b) Termination of Authority.--Section 382N of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-
13) is amended by striking ``2007'' and inserting ``2012''.
(c) Expansion.--Section 4(2) of the Delta Development Act
(42 U.S.C. 3121 note; Public Law 100-460) is amended--
(1) in subparagraph (D), by inserting ``Beauregard,
Bienville, Cameron, Claiborne, DeSoto, Jefferson Davis, Red
River, St. Mary, Vermillion, Webster,'' after ``St. James,'';
and
(2) in subparagraph (E)--
(A) by inserting ``Jasper,'' after ``Copiah,''; and
(B) by inserting ``Smith,'' after ``Simpson,''.
SEC. 6026. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.
(a) Definition of Region.--Section 383A(4) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
2009bb(4)) is amended by inserting ``Missouri (other than
counties included in the Delta Regional Authority),'' after
``Minnesota,''.
(b) Establishment.--Section 383B of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2009bb-1) is amended--
(1) in subsection (a), by adding at the end the following:
``(4) Failure to confirm.--
``(A) Federal member.--Notwithstanding any other provision
of this section, if a Federal member described in paragraph
(2)(A) has not been confirmed by the Senate by not later than
180 days after the date of enactment of this paragraph, the
Authority may organize and operate without the Federal
member.
``(B) Indian chairperson.--In the case of the Indian
Chairperson, if no Indian Chairperson is confirmed by the
Senate, the regional authority shall consult and coordinate
with the leaders of Indian tribes in the region concerning
the activities of the Authority, as appropriate.'';
(2) in subsection (d)--
(A) in paragraph (1), by striking ``to establish priorities
and'' and inserting ``for multistate cooperation to advance
the economic and social well-being of the region and to'';
(B) in paragraph (3), by striking ``local development
districts,'' and inserting ``regional and local development
districts or organizations, regional boards established under
subtitle I,'';
(C) in paragraph (4), by striking ``cooperation;'' and
inserting ``cooperation for--
``(i) renewable energy development and transmission;
``(ii) transportation planning and economic development;
``(iii) information technology;
``(iv) movement of freight and individuals within the
region;
``(v) federally-funded research at institutions of higher
education; and
``(vi) conservation land management;'';
(D) by striking paragraph (6) and inserting the following:
``(6) enhance the capacity of, and provide support for,
multistate development and research organizations, local
development organizations and districts, and resource
conservation districts in the region;''; and
(E) in paragraph (7), by inserting ``renewable energy,''
after ``commercial,''.
[[Page H4549]]
(3) in subsection (f)(2), by striking ``the Federal
cochairperson'' and inserting ``a cochairperson'';
(4) in subsection (g)(1), by striking subparagraphs (A)
through (C) and inserting the following:
``(A) for each of fiscal years 2008 and 2009, 100 percent;
``(B) for fiscal year 2010, 75 percent; and
``(C) for fiscal year 2011 and each fiscal year thereafter,
50 percent.''.
(c) Interstate Cooperation for Economic Opportunity and
Efficiency.--
(1) In general.--Subtitle G of the Consolidated Farm and
Rural Development Act is amended--
(A) by redesignating sections 383C through 383N (7 U.S.C.
2009bb-2 through 2009bb-13) as sections 383D through 383O,
respectively; and
(B) by inserting after section 383B (7 U.S.C. 2009bb-1) the
following:
``SEC. 383C. INTERSTATE COOPERATION FOR ECONOMIC OPPORTUNITY
AND EFFICIENCY.
``(a) In General.--The Authority shall provide assistance
to States in developing regional plans to address multistate
economic issues, including plans--
``(1) to develop a regional transmission system for
movement of renewable energy to markets outside the region;
``(2) to address regional transportation concerns,
including the establishment of a Northern Great Plains
Regional Transportation Working Group;
``(3) to encourage and support interstate collaboration on
federally-funded research that is in the national interest;
and
``(4) to establish a Regional Working Group on Agriculture
Development and Transportation.
``(b) Economic Issues.--The multistate economic issues
referred to in subsection (a) shall include--
``(1) renewable energy development and transmission;
``(2) transportation planning and economic development;
``(3) information technology;
``(4) movement of freight and individuals within the
region;
``(5) federally-funded research at institutions of higher
education; and
``(6) conservation land management.''.
(2) Conforming amendments.--
(A) Section 383B(c)(3)(B) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2009bb-1(c)(3)(B)) is amended
by striking ``383I'' and inserting ``383J''.
(B) Section 383D(a) of the Consolidated Farm and Rural
Development Act (as redesignated by paragraph (1)(A)) is
amended by striking ``383I'' and inserting ``383J''.
(C) Section 383E of the Consolidated Farm and Rural
Development Act (as so redesignated) is amended--
(i) in subsection (b)(1), by striking ``383F(b)'' and
inserting ``383G(b)''; and
(ii) in subsection (c)(2)(A), by striking ``383I'' and
inserting ``383J''.
(D) Section 383G of the Consolidated Farm and Rural
Development Act (as so redesignated) is amended--
(i) in subsection (b)--
(I) in paragraph (1), by striking ``383M'' and inserting
``383N''; and
(II) in paragraph (2), by striking ``383D(b)'' and
inserting ``383E(b)'';
(ii) in subsection (c)(2)(A), by striking ``383E(b)'' and
inserting ``383F(b)''; and
(iii) in subsection (d)--
(I) by striking ``383M'' and inserting ``383N''; and
(II) by striking ``383C(a)'' and inserting ``383D(a)''.
(E) Section 383J(c)(2) of the Consolidated Farm and Rural
Development Act (as so redesignated) is amended by striking
``383H'' and inserting ``383I''.
(d) Economic and Community Development Grants.--Section
383D of the Consolidated Farm and Rural Development Act (as
redesignated by subsection (c)(1)(A)) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``transportation and
telecommunication'' and inserting ``transportation, renewable
energy transmission, and telecommunication''; and
(B) by redesignating paragraphs (1) and (2) as paragraphs
(2) and (1), respectively, and moving those paragraphs so as
to appear in numerical order; and
(2) in subsection (b)(2), by striking ``the activities in
the following order or priority'' and inserting ``the
following activities''.
(e) Supplements to Federal Grant Programs.--Section 383E(a)
of the Consolidated Farm and Rural Development Act (as
redesignated by subsection (c)(1)(A)) is amended by striking
``, including local development districts,''.
(f) Multistate and Local Development Districts and
Organizations and Northern Great Plains Inc.--Section 383F of
the Consolidated Farm and Rural Development Act (as
redesignated by subsection (c)(1)(A)) is amended--
(1) by striking the section heading and inserting
``MULTISTATE AND LOCAL DEVELOPMENT DISTRICTS AND
ORGANIZATIONS AND NORTHERN GREAT PLAINS INC.''; and
(2) by striking subsections (a) through (c) and inserting
the following:
``(a) Definition of Multistate and Local Development
District or Organization.--In this section, the term
`multistate and local development district or organization'
means an entity--
``(1) that--
``(A) is a planning district in existence on the date of
enactment of this subtitle that is recognized by the Economic
Development Administration of the Department of Commerce; or
``(B) is--
``(i) organized and operated in a manner that ensures
broad-based community participation and an effective
opportunity for other nonprofit groups to contribute to the
development and implementation of programs in the region;
``(ii) a nonprofit incorporated body organized or chartered
under the law of the State in which the entity is located;
``(iii) a nonprofit agency or instrumentality of a State or
local government;
``(iv) a public organization established before the date of
enactment of this subtitle under State law for creation of
multijurisdictional, area-wide planning organizations;
``(v) a nonprofit agency or instrumentality of a State that
was established for the purpose of assisting with multistate
cooperation; or
``(vi) a nonprofit association or combination of bodies,
agencies, and instrumentalities described in clauses (ii)
through (v); and
``(2) that has not, as certified by the Authority (in
consultation with the Federal cochairperson or Secretary, as
appropriate)--
``(A) inappropriately used Federal grant funds from any
Federal source; or
``(B) appointed an officer who, during the period in which
another entity inappropriately used Federal grant funds from
any Federal source, was an officer of the other entity.
``(b) Grants to Multistate, Local, or Regional Development
Districts and Organizations.--
``(1) In general.--The Authority may make grants for
administrative expenses under this section to multistate,
local, and regional development districts and organizations.
``(2) Conditions for grants.--
``(A) Maximum amount.--The amount of any grant awarded
under paragraph (1) shall not exceed 80 percent of the
administrative expenses of the multistate, local, or regional
development district or organization receiving the grant.
``(B) Maximum period.--No grant described in paragraph (1)
shall be awarded for a period greater than 3 years.
``(3) Local share.--The contributions of a multistate,
local, or regional development district or organization for
administrative expenses may be in cash or in kind, fairly
evaluated, including space, equipment, and services.
``(c) Duties.--
``(1) In general.--Except as provided in paragraph (2), a
local development district shall operate as a lead
organization serving multicounty areas in the region at the
local level.
``(2) Designation.--The Federal cochairperson may designate
an Indian tribe or multijurisdictional organization to serve
as a lead organization in such cases as the Federal
cochairperson or Secretary, as appropriate, determines
appropriate.''.
(g) Distressed Counties and Areas and Nondistressed
Counties.--Section 383G of the Consolidated Farm and Rural
Development Act (as redesignated by subsection (c)(1)(A)) is
amended--
(1) in subsection (b)(1), by striking ``75'' and inserting
``50'';
(2) by striking subsection (c);
(3) by redesignating subsection (d) as subsection (c); and
(4) in subsection (c) (as so redesignated)--
(A) in the subsection heading, by inserting ``Renewable
Energy,'' after ``Telecommunication''; and
(B) by inserting ``, renewable energy,'' after
``telecommunication,''.
(h) Development Planning Process.--Section 383H of the
Consolidated Farm and Rural Development Act (as redesignated
by subsection (c)(1)(A)) is amended--
(1) in subsection (c)(1), by striking subparagraph (A) and
inserting the following:
``(A) multistate, regional, and local development districts
and organizations; and''; and
(2) in subsection (d)(1), by striking ``State and local
development districts'' and inserting ``multistate, regional,
and local development districts and organizations''.
(i) Program Development Criteria.--Section 383I(a)(1) of
the Consolidated Farm and Rural Development Act (as
redesignated by subsection (c)(1)(A)) is amended by inserting
``multistate or'' before ``regional''.
(j) Authorization of Appropriations.--Section 383N(a) of
the Consolidated Farm and Rural Development Act (as
redesignated by subsection (c)(1)(A)) is amended by striking
``2002 through 2007'' and inserting ``2008 through 2012''.
(k) Termination of Authority.--Section 383O of the
Consolidated Farm and Rural Development Act (as redesignated
by subsection (c)(1)(A)) is amended by striking ``2007'' and
inserting ``2012''.
SEC. 6027. RURAL BUSINESS INVESTMENT PROGRAM.
(a) Issuance and Guarantee of Trust Certificates.--Section
384F(b)(3)(A) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2009cc-5(b)(3)(A)) is amended by striking ``In
the event'' and inserting the following:
``(i) Authority to prepay.--A debenture may be prepaid at
any time without penalty.
``(ii) Reduction of guarantee.--Subject to clause (i),
if''.
(b) Fees.--Section 384G of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2009cc-6) is amended--
[[Page H4550]]
(1) in subsection (a), by striking ``such fees as the
Secretary considers appropriate'' and inserting ``a fee that
does not exceed $500'';
(2) in subsection (b), by striking ``approved by the
Secretary'' and inserting ``that does not exceed $500''; and
(3) in subsection (c)--
(A) in paragraph (1), by striking ``The'' and inserting
``Except as provided in paragraph (3), the'';
(B) in paragraph (2)--
(i) in subparagraph (A), by striking ``and'' at the end;
(ii) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(iii) by adding at the end the following:
``(C) shall not exceed $500 for any fee collected under
this subsection.''; and
(C) by adding at the end the following:
``(3) Prohibition on collection of certain fees.--In the
case of a license described in paragraph (1) that was
approved before July 1, 2007, the Secretary shall not collect
any fees due on or after the date of enactment of this
paragraph.''.
(c) Rural Business Investment Companies.--Section 384I(c)
of the Consolidated Farm and Rural Development Act (7 U.S.C.
2009cc-8(c)) is amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following:
``(3) Time frame.--Each rural business investment company
shall have a period of 2 years to meet the capital
requirements of this subsection.''.
(d) Financial Institution Investments.--Section 384J of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-
9) is amended--
(1) in subsection (a)(1), by inserting ``, including an
investment pool created entirely by such bank or savings
association'' before the period at the end; and
(2) in subsection (c), by striking ``15'' and inserting
``25''.
(e) Contracting of Functions.--Section 384Q of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-
16) is repealed.
(f) Funding.--The Consolidated Farm and Rural Development
Act is amended by striking section 384S (7 U.S.C. 2009cc-18)
and inserting the following:
``SEC. 384S. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to carry out this
subtitle $50,000,000 for the period of fiscal years 2008
through 2012.''.
SEC. 6028. RURAL COLLABORATIVE INVESTMENT PROGRAM.
Subtitle I of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2009dd et seq.) is amended to read as follows:
``Subtitle I--Rural Collaborative Investment Program
``SEC. 385A. PURPOSE.
``The purpose of this subtitle is to establish a regional
rural collaborative investment program--
``(1) to provide rural regions with a flexible investment
vehicle, allowing for local control with Federal oversight,
assistance, and accountability;
``(2) to provide rural regions with incentives and
resources to develop and implement comprehensive strategies
for achieving regional competitiveness, innovation, and
prosperity;
``(3) to foster multisector community and economic
development collaborations that will optimize the asset-based
competitive advantages of rural regions with particular
emphasis on innovation, entrepreneurship, and the creation of
quality jobs;
``(4) to foster collaborations necessary to provide the
professional technical expertise, institutional capacity, and
economies of scale that are essential for the long-term
competitiveness of rural regions; and
``(5) to better use Department of Agriculture and other
Federal, State, and local governmental resources, and to
leverage those resources with private, nonprofit, and
philanthropic investments, in order to achieve measurable
community and economic prosperity, growth, and
sustainability.
``SEC. 385B. DEFINITIONS.
``In this subtitle:
``(1) Benchmark.--The term `benchmark' means an annual set
of goals and performance measures established for the purpose
of assessing performance in meeting a regional investment
strategy of a Regional Board.
``(2) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(3) National board.--The term `National Board' means the
National Rural Investment Board established under section
385C(c).
``(4) National institute.--The term `National Institute'
means the National Institute on Regional Rural
Competitiveness and Entrepreneurship established under
section 385C(b)(2).
``(5) Regional board.--The term `Regional Board' means a
Regional Rural Investment Board described in section 385D(a).
``(6) Regional innovation grant.--The term `regional
innovation grant' means a grant made by the Secretary to a
certified Regional Board under section 385F.
``(7) Regional investment strategy grant.--The term
`regional investment strategy grant' means a grant made by
the Secretary to a certified Regional Board under section
385E.
``(8) Rural heritage.--
``(A) In general.--The term `rural heritage' means historic
sites, structures, and districts.
``(B) Inclusions.--The term `rural heritage' includes
historic rural downtown areas and main streets,
neighborhoods, farmsteads, scenic and historic trails,
heritage areas, and historic landscapes.
``SEC. 385C. ESTABLISHMENT AND ADMINISTRATION OF RURAL
COLLABORATIVE INVESTMENT PROGRAM.
``(a) Establishment.--The Secretary shall establish a Rural
Collaborative Investment Program to support comprehensive
regional investment strategies for achieving rural
competitiveness.
``(b) Duties of Secretary.--In carrying out this subtitle,
the Secretary shall--
``(1) appoint and provide administrative and program
support to the National Board;
``(2) establish a national institute, to be known as the
`National Institute on Regional Rural Competitiveness and
Entrepreneurship', to provide technical assistance to the
Secretary and the National Board regarding regional
competitiveness and rural entrepreneurship, including
technical assistance for--
``(A) the development of rigorous analytic programs to
assist Regional Boards in determining the challenges and
opportunities that need to be addressed to receive the
greatest regional competitive advantage;
``(B) the provision of support for best practices developed
by the Regional Boards;
``(C) the establishment of programs to support the
development of appropriate governance and leadership skills
in the applicable regions; and
``(D) the evaluation of the progress and performance of the
Regional Boards in achieving benchmarks established in a
regional investment strategy;
``(3) work with the National Board to develop a national
rural investment plan that shall--
``(A) create a framework to encourage and support a more
collaborative and targeted rural investment portfolio in the
United States;
``(B) establish a Rural Philanthropic Initiative, to work
with rural communities to create and enhance the pool of
permanent philanthropic resources committed to rural
community and economic development;
``(C) cooperate with the Regional Boards and State and
local governments, organizations, and entities to ensure
investment strategies are developed that take into
consideration existing rural assets; and
``(D) encourage the organization of Regional Boards;
``(4) certify the eligibility of Regional Boards to receive
regional investment strategy grants and regional innovation
grants;
``(5) provide grants for Regional Boards to develop and
implement regional investment strategies;
``(6) provide technical assistance to Regional Boards on
issues, best practices, and emerging trends relating to rural
development, in cooperation with the National Rural
Investment Board; and
``(7) provide analytic and programmatic support for
regional rural competitiveness through the National
Institute, including--
``(A) programs to assist Regional Boards in determining the
challenges and opportunities that must be addressed to
receive the greatest regional competitive advantage;
``(B) support for best practices development by the
regional investment boards;
``(C) programs to support the development of appropriate
governance and leadership skills in the region; and
``(D) a review and evaluation of the performance of the
Regional Boards (including progress in achieving benchmarks
established in a regional investment strategy) in an annual
report submitted to--
``(i) the Committee on Agriculture of the House of
Representatives; and
``(ii) the Committee on Agriculture, Nutrition, and
Forestry of the Senate.
``(c) National Rural Investment Board.--The Secretary shall
establish within the Department of Agriculture a board to be
known as the `National Rural Investment Board'.
``(d) Duties of National Board.--The National Board shall--
``(1) not later than 180 days after the date of
establishment of the National Board, develop rules relating
to the operation of the National Board; and
``(2) provide advice to--
``(A) the Secretary and subsequently review the design,
development, and execution of the National Rural Investment
Plan;
``(B) Regional Boards on issues, best practices, and
emerging trends relating to rural development; and
``(C) the Secretary and the National Institute on the
development and execution of the program under this subtitle.
``(e) Membership.--
``(1) In general.--The National Board shall consist of 14
members appointed by the Secretary not later than 180 days
after the date of enactment of the Food, Conservation, and
Energy Act of 2008.
``(2) Supervision.--The National Board shall be subject to
the general supervision and direction of the Secretary.
``(3) Sectors represented.--The National Board shall
consist of representatives from each of--
``(A) nationally recognized entrepreneurship organizations;
``(B) regional strategy and development organizations;
``(C) community-based organizations;
[[Page H4551]]
``(D) elected members of local governments;
``(E) members of State legislatures;
``(F) primary, secondary, and higher education, job skills
training, and workforce development institutions;
``(G) the rural philanthropic community;
``(H) financial, lending, venture capital,
entrepreneurship, and other related institutions;
``(I) private sector business organizations, including
chambers of commerce and other for-profit business interests;
``(J) Indian tribes; and
``(K) cooperative organizations.
``(4) Selection of members.--
``(A) In general.--In selecting members of the National
Board, the Secretary shall consider recommendations made by--
``(i) the chairman and ranking member of each of the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate;
``(ii) the Majority Leader and Minority Leader of the
Senate; and
``(iii) the Speaker and Minority Leader of the House of
Representatives.
``(B) Ex-officio members.--In consultation with the
chairman and ranking member of each of the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate, the
Secretary may appoint not more than 3 other officers or
employees of the Executive Branch to serve as ex-officio,
nonvoting members of the National Board.
``(5) Term of office.--
``(A) In general.--Subject to subparagraph (B), the term of
office of a member of the National Board appointed under
paragraph (1)(A) shall be for a period of not more than 4
years.
``(B) Staggered terms.--The members of the National Board
shall be appointed to serve staggered terms.
``(6) Initial appointments.--Not later than 1 year after
the date of enactment of the Food, Conservation, and Energy
Act of 2008, the Secretary shall appoint the initial members
of the National Board.
``(7) Vacancies.--A vacancy on the National Board shall be
filled in the same manner as the original appointment.
``(8) Compensation.--A member of the National Board shall
receive no compensation for service on the National Board,
but shall be reimbursed for related travel and other expenses
incurred in carrying out the duties of the member of the
National Board in accordance with section 5702 and 5703 of
title 5, United States Code.
``(9) Chairperson.--The National Board shall select a
chairperson from among the members of the National Board.
``(10) Federal status.--For purposes of Federal law, a
member of the National Board shall be considered a special
Government employee (as defined in section 202(a) of title
18, United States Code).
``(f) Administrative Support.--The Secretary, on a
reimbursable basis from funds made available under section
385H, may provide such administrative support to the National
Board as the Secretary determines is necessary.
``SEC. 385D. REGIONAL RURAL INVESTMENT BOARDS.
``(a) In General.--A Regional Rural Investment Board shall
be a multijurisdictional and multisectoral group that--
``(1) represents the long-term economic, community, and
cultural interests of a region;
``(2) is certified by the Secretary to establish a rural
investment strategy and compete for regional innovation
grants;
``(3) is composed of residents of a region that are broadly
representative of diverse public, nonprofit, and private
sector interests in investment in the region, including (to
the maximum extent practicable) representatives of--
``(A) units of local, multijurisdictional, or State
government, including not more than 1 representative from
each State in the region;
``(B) nonprofit community-based development organizations,
including community development financial institutions and
community development corporations;
``(C) agricultural, natural resource, and other asset-based
related industries;
``(D) in the case of regions with federally recognized
Indian tribes, Indian tribes;
``(E) regional development organizations;
``(F) private business organizations, including chambers of
commerce;
``(G)(i) institutions of higher education (as defined in
section 101(a) of the Higher Education Act of 1965 (20 U.S.C.
1001(a)));
``(ii) tribally controlled colleges or universities (as
defined in section 2(a) of Tribally Controlled College or
University Assistance Act of 1978 (25 U.S.C. 1801(a))); and
``(iii) tribal technical institutions;
``(H) workforce and job training organizations;
``(I) other entities and organizations, as determined by
the Regional Board;
``(J) cooperatives; and
``(K) consortia of entities and organizations described in
subparagraphs (A) through (J);
``(4) represents a region inhabited by--
``(A) more than 25,000 individuals, as determined in the
latest available decennial census conducted under section
141(a) of title 13, United States Code; or
``(B) in the case of a region with a population density of
less than 2 individuals per square mile, at least 10,000
individuals, as determined in that latest available decennial
census;
``(5) has a membership of which not less than 25 percent,
nor more than 40 percent, represents--
``(A) units of local government and Indian tribes described
in subparagraphs (A) and (D) of paragraph (3);
``(B) nonprofit community and economic development
organizations and institutions of higher education described
in subparagraphs (B) and (G) of paragraph (3); or
``(C) private business (including chambers of commerce and
cooperatives) and agricultural, natural resource, and other
asset-based related industries described in subparagraphs (C)
and (F) of paragraph (3);
``(6) has a membership that may include an officer or
employee of a Federal agency, serving as an ex-officio,
nonvoting member of the Regional Board to represent the
agency; and
``(7) has organizational documents that demonstrate that
the Regional Board will--
``(A) create a collaborative public-private strategy
process;
``(B) develop, and submit to the Secretary for approval, a
regional investment strategy that meets the requirements of
section 385E, with benchmarks--
``(i) to promote investment in rural areas through the use
of grants made available under this subtitle; and
``(ii) to provide financial and technical assistance to
promote a broad-based regional development program aimed at
increasing and diversifying economic growth, improved
community facilities, and improved quality of life;
``(C) implement the approved regional investment strategy;
``(D) provide annual reports to the Secretary and the
National Board on progress made in achieving the benchmarks
of the regional investment strategy, including an annual
financial statement; and
``(E) select a non-Federal organization (such as a regional
development organization) in the local area served by the
Regional Board that has previous experience in the management
of Federal funds to serve as fiscal manager of any funds of
the Regional Board.
``(b) Urban Areas.--A resident of an urban area may serve
as an ex-officio member of a Regional Board.
``(c) Duties.--A Regional Board shall--
``(1) create a collaborative planning process for public-
private investment within a region;
``(2) develop, and submit to the Secretary for approval, a
regional investment strategy;
``(3) develop approaches that will create permanent
resources for philanthropic giving in the region, to the
maximum extent practicable;
``(4) implement an approved strategy; and
``(5) provide annual reports to the Secretary and the
National Board on progress made in achieving the strategy,
including an annual financial statement.
``SEC. 385E. REGIONAL INVESTMENT STRATEGY GRANTS.
``(a) In General.--The Secretary shall make regional
investment strategy grants available to Regional Boards for
use in developing, implementing, and maintaining regional
investment strategies.
``(b) Regional Investment Strategy.--A regional investment
strategy shall provide--
``(1) an assessment of the competitive advantage of a
region, including--
``(A) an analysis of the economic conditions of the region;
``(B) an assessment of the current economic performance of
the region;
``(C) an overview of the population, geography, workforce,
transportation system, resources, environment, and
infrastructure needs of the region; and
``(D) such other pertinent information as the Secretary may
request;
``(2) an analysis of regional economic and community
development challenges and opportunities, including--
``(A) incorporation of relevant material from other
government-sponsored or supported plans and consistency with
applicable State, regional, and local workforce investment
strategies or comprehensive economic development plans; and
``(B) an identification of past, present, and projected
Federal and State economic and community development
investments in the region;
``(3) a section describing goals and objectives necessary
to solve regional competitiveness challenges and meet the
potential of the region;
``(4) an overview of resources available in the region for
use in--
``(A) establishing regional goals and objectives;
``(B) developing and implementing a regional action
strategy;
``(C) identifying investment priorities and funding
sources; and
``(D) identifying lead organizations to execute portions of
the strategy;
``(5) an analysis of the current state of collaborative
public, private, and nonprofit participation and investment,
and of the strategic roles of public, private, and nonprofit
entities in the development and implementation of the
regional investment strategy;
``(6) a section identifying and prioritizing vital
projects, programs, and activities for consideration by the
Secretary, including--
``(A) other potential funding sources; and
``(B) recommendations for leveraging past and potential
investments;
[[Page H4552]]
``(7) a plan of action to implement the goals and
objectives of the regional investment strategy;
``(8) a list of performance measures to be used to evaluate
implementation of the regional investment strategy,
including--
``(A) the number and quality of jobs, including self-
employment, created during implementation of the regional
rural investment strategy;
``(B) the number and types of investments made in the
region;
``(C) the growth in public, private, and nonprofit
investment in the human, community, and economic assets of
the region;
``(D) changes in per capita income and the rate of
unemployment; and
``(E) other changes in the economic environment of the
region;
``(9) a section outlining the methodology for use in
integrating the regional investment strategy with the
economic priorities of the State; and
``(10) such other information as the Secretary determines
to be appropriate.
``(c) Maximum Amount of Grant.--A regional investment
strategy grant shall not exceed $150,000.
``(d) Cost Sharing.--
``(1) In general.--Subject to paragraph (2), of the share
of the costs of developing, maintaining, evaluating,
implementing, and reporting with respect to a regional
investment strategy funded by a grant under this section--
``(A) not more than 40 percent may be paid using funds from
the grant; and
``(B) the remaining share shall be provided by the
applicable Regional Board or other eligible grantee.
``(2) Form.--A Regional Board or other eligible grantee
shall pay the share described in paragraph (1)(B) in the form
of cash, services, materials, or other in-kind contributions,
on the condition that not more than 50 percent of that share
is provided in the form of services, materials, and other in-
kind contributions.
``SEC. 385F. REGIONAL INNOVATION GRANTS PROGRAM.
``(a) Grants.--
``(1) In general.--The Secretary shall provide, on a
competitive basis, regional innovation grants to Regional
Boards for use in implementing projects and initiatives that
are identified in a regional rural investment strategy
approved under section 385E.
``(2) Timing.--After October 1, 2008, the Secretary shall
provide awards under this section on a quarterly funding
cycle.
``(b) Eligibility.--To be eligible to receive a regional
innovation grant, a Regional Board shall demonstrate to the
Secretary that--
``(1) the regional rural investment strategy of a Regional
Board has been reviewed by the National Board prior to
approval by the Secretary;
``(2) the management and organizational structure of the
Regional Board is sufficient to oversee grant projects,
including management of Federal funds; and
``(3) the Regional Board has a plan to achieve, to the
maximum extent practicable, the performance-based benchmarks
of the project in the regional rural investment strategy.
``(c) Limitations.--
``(1) Amount received.--A Regional Board may not receive
more than $6,000,000 in regional innovation grants under this
section during any 5-year period.
``(2) Determination of amount.--The Secretary shall
determine the amount of a regional innovation grant based
on--
``(A) the needs of the region being addressed by the
applicable regional rural investment strategy consistent with
the purposes described in subsection (f)(2); and
``(B) the size of the geographical area of the region.
``(3) Geographic diversity.--The Secretary shall ensure
that not more than 10 percent of funding made available under
this section is provided to Regional Boards in any State.
``(d) Cost-Sharing.--
``(1) Limitation.--Subject to paragraph (2), the amount of
a grant made under this section shall not exceed 50 percent
of the cost of the project.
``(2) Waiver of grantee share.--The Secretary may waive the
limitation in paragraph (1) under special circumstances, as
determined by the Secretary, including--
``(A) a sudden or severe economic dislocation;
``(B) significant chronic unemployment or poverty;
``(C) a natural disaster; or
``(D) other severe economic, social, or cultural duress.
``(3) Other federal assistance.--For the purpose of
determining cost-share limitations for any other Federal
program, funds provided under this section shall be
considered to be non-Federal funds.
``(e) Preferences.--In providing regional innovation grants
under this section, the Secretary shall give--
``(1) a high priority to strategies that demonstrate
significant leverage of capital and quality job creation; and
``(2) a preference to an application proposing projects and
initiatives that would--
``(A) advance the overall regional competitiveness of a
region;
``(B) address the priorities of a regional rural investment
strategy, including priorities that--
``(i) promote cross-sector collaboration, public-private
partnerships, or the provision of interim financing or seed
capital for program implementation;
``(ii) exhibit collaborative innovation and
entrepreneurship, particularly within a public-private
partnership; and
``(iii) represent a broad coalition of interests described
in section 385D(a);
``(C) include a strategy to leverage public non-Federal and
private funds and existing assets, including agricultural,
natural resource, and public infrastructure assets, with
substantial emphasis placed on the existence of real
financial commitments to leverage available funds;
``(D) create quality jobs;
``(E) enhance the role, relevance, and leveraging potential
of community and regional foundations in support of regional
investment strategies;
``(F) demonstrate a history, or involve organizations with
a history, of successful leveraging of capital for economic
development and public purposes;
``(G) address gaps in existing basic services, including
technology, within a region;
``(H) address economic diversification, including
agricultural and non-agriculturally based economies, within a
regional framework;
``(I) improve the overall quality of life in the region;
``(J) enhance the potential to expand economic development
successes across diverse stakeholder groups within the
region;
``(K) include an effective working relationship with 1 or
more institutions of higher education, tribally controlled
colleges or universities, or tribal technical institutions;
``(L) help to meet the other regional competitiveness needs
identified by a Regional Board; or
``(M) protect and promote rural heritage.
``(f) Uses.--
``(1) Leverage.--A Regional Board shall prioritize projects
and initiatives carried out using funds from a regional
innovation grant provided under this section, based in part
on the degree to which members of the Regional Board are able
to leverage additional funds for the implementation of the
projects.
``(2) Purposes.--A Regional Board may use a regional
innovation grant--
``(A) to support the development of critical infrastructure
(including technology deployment and services) necessary to
facilitate the competitiveness of a region;
``(B) to provide assistance to entities within the region
that provide essential public and community services;
``(C) to enhance the value-added production, marketing, and
use of agricultural and natural resources within the region,
including activities relating to renewable and alternative
energy production and usage;
``(D) to assist with entrepreneurship, job training,
workforce development, housing, educational, or other quality
of life services or needs, relating to the development and
maintenance of strong local and regional economies;
``(E) to assist in the development of unique new
collaborations that link public, private, and philanthropic
resources, including community foundations;
``(F) to provide support for business and entrepreneurial
investment, strategy, expansion, and development, including
feasibility strategies, technical assistance, peer networks,
business development funds, and other activities to
strengthen the economic competitiveness of the region;
``(G) to provide matching funds to enable community
foundations located within the region to build endowments
which provide permanent philanthropic resources to implement
a regional investment strategy; and
``(H) to preserve and promote rural heritage.
``(3) Availability of funds.--The funds made available to a
Regional Board or any other eligible grantee through a
regional innovation grant shall remain available for the 7-
year period beginning on the date on which the award is
provided, on the condition that the Regional Board or other
grantee continues to be certified by the Secretary as making
adequate progress toward achieving established benchmarks.
``(g) Cost Sharing.--
``(1) Waiver of grantee share.--The Secretary may waive the
share of a grantee of the costs of a project funded by a
regional innovation grant under this section if the Secretary
determines that such a waiver is appropriate, including with
respect to special circumstances within tribal regions, in
the event an area experiences--
``(A) a sudden or severe economic dislocation;
``(B) significant chronic unemployment or poverty;
``(C) a natural disaster; or
``(D) other severe economic, social, or cultural duress.
``(2) Other federal programs.--For the purpose of
determining cost-sharing requirements for any other Federal
program, funds provided as a regional innovation grant under
this section shall be considered to be non-Federal funds.
``(h) Noncompliance.--If a Regional Board or other eligible
grantee fails to comply with any requirement relating to the
use of funds provided under this section, the Secretary may--
``(1) take such actions as are necessary to obtain
reimbursement of unused grant funds; and
``(2) reprogram the recaptured funds for purposes relating
to implementation of this subtitle.
[[Page H4553]]
``(i) Priority to Areas With Awards and Approved
Strategies.--
``(1) In general.--Subject to paragraph (3), in providing
rural development assistance under other programs, the
Secretary shall give a high priority to areas that receive
innovation grants under this section.
``(2) Consultation.--The Secretary shall consult with the
heads of other Federal agencies to promote the development of
priorities similar to those described in paragraph (1).
``(3) Exclusion of certain programs.--Paragraph (1) shall
not apply to the provision of rural development assistance
under any program relating to basic health, safety, or
infrastructure, including broadband deployment or minimum
environmental needs.
``SEC. 385G. RURAL ENDOWMENT LOANS PROGRAM.
``(a) In General.--The Secretary may provide long-term
loans to eligible community foundations to assist in the
implementation of regional investment strategies.
``(b) Eligible Community Foundations.--To be eligible to
receive a loan under this section, a community foundation
shall--
``(1) be located in an area that is covered by a regional
investment strategy;
``(2) match the amount of the loan with an amount that is
at least 250 percent of the amount of the loan; and
``(3) use the loan and the matching amount to carry out the
regional investment strategy in a manner that is targeted to
community and economic development, including through the
development of community foundation endowments.
``(c) Terms.--A loan made under this section shall--
``(1) have a term of not less than 10, nor more than 20,
years;
``(2) bear an interest rate of 1 percent per annum; and
``(3) be subject to such other terms and conditions as are
determined appropriate by the Secretary.
``SEC. 385H. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
subtitle $135,000,000 for the period of fiscal years 2009
through 2012.''.
SEC. 6029. FUNDING OF PENDING RURAL DEVELOPMENT LOAN AND
GRANT APPLICATIONS.
(a) Definition of Application.--In this section, the term
``application'' does not include an application for a loan or
grant that, as of the date of enactment of this Act, is in
the preapplication phase of consideration under regulations
of the Secretary in effect on the date of enactment of this
Act.
(b) Use of Funds.--Subject to subsection (c), the Secretary
shall use funds made available under subsection (d) to
provide funds for applications that are pending on the date
of enactment of this Act for--
(1) water or waste disposal grants or direct loans under
paragraph (1) or (2) of section 306(a) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1926(a)); and
(2) emergency community water assistance grants under
section 306A of that Act (7 U.S.C. 1926a).
(c) Limitations.--
(1) Appropriated amounts.--Funds made available under this
section shall be available to the Secretary to provide funds
for applications for loans and grants described in subsection
(b) that are pending on the date of enactment of this Act
only to the extent that funds for the loans and grants
appropriated in the annual appropriations Act for fiscal year
2007 have been exhausted.
(2) Program requirements.--The Secretary may use funds made
available under this section to provide funds for a pending
application for a loan or grant described in subsection (b)
only if the Secretary processes, reviews, and approves the
application in accordance with regulations in effect on the
date of enactment of this Act.
(3) Priority.--In providing funding under this section for
pending applications for loans or grants described in
subsection (b), the Secretary shall provide funding in the
following order of priority (until funds made available under
this section are exhausted):
(A) Pending applications for water systems.
(B) Pending applications for waste disposal systems.
(d) Funding.--Notwithstanding any other provision of law,
of the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this section $120,000,000,
to remain available until expended.
Subtitle B--Rural Electrification Act of 1936
SEC. 6101. ENERGY EFFICIENCY PROGRAMS.
Sections 2(a) and 4 of the Rural Electrification Act of
1936 (7 U.S.C. 902(a), 904) are amended by inserting
``efficiency and'' before ``conservation'' each place it
appears.
SEC. 6102. REINSTATEMENT OF RURAL UTILITY SERVICES DIRECT
LENDING.
(a) In General.--Section 4 of the Rural Electrification Act
of 1936 (7 U.S.C. 904) is amended--
(1) by designating the first, second, and third sentences
as subsections (a), (b), and (d), respectively; and
(2) by inserting after subsection (b) (as so designated)
the following:
``(c) Direct Loans.--
``(1) Direct hardship loans.--Direct hardship loans under
this section shall be for the same purposes and on the same
terms and conditions as hardship loans made under section
305(c)(1).
``(2) Other direct loans.--All other direct loans under
this section shall bear interest at a rate equal to the then
current cost of money to the Government of the United States
for loans of similar maturity, plus \1/8\ of 1 percent.''.
(b) Elimination of Federal Financing Bank Guaranteed
Loans.--Section 306 of the Rural Electrification Act of 1936
(7 U.S.C. 936) is amended--
(1) in the third sentence, by striking ``guarantee,
accommodation, or subordination'' and inserting
``accommodation or subordination''; and
(2) by striking the fourth sentence.
SEC. 6103. DEFERMENT OF PAYMENTS TO ALLOWS LOANS FOR IMPROVED
ENERGY EFFICIENCY AND DEMAND REDUCTION AND FOR
ENERGY EFFICIENCY AND USE AUDITS.
Section 12 of the Rural Electrification Act of 1936 (7
U.S.C. 912) is amended by adding at the end the following:
``(c) Deferment of Payments on Loans.--
``(1) In general.--The Secretary shall allow borrowers to
defer payment of principal and interest on any direct loan
made under this Act to enable the borrower to make loans to
residential, commercial, and industrial consumers--
``(A) to conduct energy efficiency and use audits; and
``(B) to install energy efficient measures or devices that
reduce the demand on electric systems.
``(2) Amount.--The total amount of a deferment under this
subsection shall not exceed the sum of the principal and
interest on the loans made to a customer of the borrower, as
determined by the Secretary.
``(3) Term.--The term of a deferment under this subsection
shall not exceed 60 months.''.
SEC. 6104. RURAL ELECTRIFICATION ASSISTANCE.
Section 13 of the Rural Electrification Act of 1936 (7
U.S.C. 913) is amended to read as follows:
``SEC. 13. DEFINITIONS.
``In this Act:
``(1) Farm.--The term `farm' means a farm, as defined by
the Bureau of the Census.
``(2) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(3) Rural area.--Except as provided otherwise in this
Act, the term `rural area' means the farm and nonfarm
population of--
``(A) any area described in section 343(a)(13)(C) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1991(a)(13)(C)); and
``(B) any area within a service area of a borrower for
which a borrower has an outstanding loan made under titles I
through V as of the date of enactment of this paragraph.
``(4) Territory.--The term `territory' includes any insular
possession of the United States.
``(5) Secretary.--The term `Secretary' means the Secretary
of Agriculture.''.
SEC. 6105. SUBSTANTIALLY UNDERSERVED TRUST AREAS.
The Rural Electrification Act of 1936 is amended by
inserting after section 306E (7 U.S.C. 936e) the following:
``SEC. 306F. SUBSTANTIALLY UNDERSERVED TRUST AREAS.
``(a) Definitions.--In this section:
``(1) Eligible program.--The term `eligible program' means
a program administered by the Rural Utilities Service and
authorized in--
``(A) this Act; or
``(B) paragraph (1), (2), (14), (22), or (24) of section
306(a) or section 306A, 306C, 306D, or 306E of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1926(a), 1926a, 1926c, 1926d, 1926e).
``(2) Substantially underserved trust area.--The term
`substantially underserved trust area' means a community in
`trust land' (as defined in section 3765 of title 38, United
States Code) with respect to which the Secretary determines
has a high need for the benefits of an eligible program.
``(b) Initiative.--The Secretary, in consultation with
local governments and Federal agencies, may implement an
initiative to identify and improve the availability of
eligible programs in communities in substantially underserved
trust areas.
``(c) Authority of Secretary.--In carrying out subsection
(b), the Secretary--
``(1) may make available from loan or loan guarantee
programs administered by the Rural Utilities Service to
qualified utilities or applicants financing with an interest
rate as low as 2 percent, and with extended repayment terms;
``(2) may waive nonduplication restrictions, matching fund
requirements, or credit support requirements from any loan or
grant program administered by the Rural Utilities Service to
facilitate the construction, acquisition, or improvement of
infrastructure;
``(3) may give the highest funding priority to designated
projects in substantially underserved trust areas; and
``(4) shall only make loans or loan guarantees that are
found to be financially feasible and that provide eligible
program benefits to substantially underserved trust areas.
``(d) Report.--Not later than 1 year after the date of
enactment of this section and annually thereafter, the
Secretary shall submit to Congress a report that describes--
``(1) the progress of the initiative implemented under
subsection (b); and
[[Page H4554]]
``(2) recommendations for any regulatory or legislative
changes that would be appropriate to improve services to
substantially underserved trust areas.''.
SEC. 6106. GUARANTEES FOR BONDS AND NOTES ISSUED FOR
ELECTRIFICATION OR TELEPHONE PURPOSES.
(a) In General.--Section 313A of the Rural Electrification
Act of 1936 (7 U.S.C. 940c-1) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``for electrification''
and all that follows through the end and inserting ``for
eligible electrification or telephone purposes consistent
with this Act.''; and
(B) by striking paragraph (4) and inserting the following:
``(4) Annual amount.--The total amount of guarantees
provided by the Secretary under this section during a fiscal
year shall not exceed $1,000,000,000, subject to the
availability of funds under subsection (e).'';
(2) in subsection (c), by striking paragraphs (2) and (3)
and inserting the following:
``(2) Amount.--
``(A) In general.--The amount of the annual fee paid for
the guarantee of a bond or note under this section shall be
equal to 30 basis points of the amount of the unpaid
principal of the bond or note guaranteed under this section.
``(B) Prohibition.--Except as otherwise provided in this
subsection and subsection (e)(2), no other fees shall be
assessed.
``(3) Payment.--
``(A) In general.--A lender shall pay the fees required
under this subsection on a semiannual basis.
``(B) Structured schedule.--The Secretary shall, with the
consent of the lender, structure the schedule for payment of
the fee to ensure that sufficient funds are available to pay
the subsidy costs for note or bond guarantees as provided for
in subsection (e)(2).''; and
(3) in subsection (f), by striking ``2007'' and inserting
``2012''.
(b) Administration.--The Secretary shall continue to carry
out section 313A of the Rural Electrification Act of 1936 (7
U.S.C. 940c-1) in the same manner as on the day before the
date of enactment of this Act, except without regard to the
limitations prescribed in subsection (b)(1) of that section,
until such time as any regulations necessary to carry out the
amendments made by this section are fully implemented.
SEC. 6107. EXPANSION OF 911 ACCESS.
Section 315 of the Rural Electrification Act of 1936 (7
U.S.C. 940e) is amended to read as follows:
``SEC. 315. EXPANSION OF 911 ACCESS.
``(a) In General.--Subject to subsection (c) and such terms
and conditions as the Secretary may prescribe, the Secretary
may make loans under this title to entities eligible to
borrow from the Rural Utilities Service, State or local
governments, Indian tribes (as defined in section 4 of the
Indian Self-Determination and Education Assistance Act (25
U.S.C. 450b)), or other public entities for facilities and
equipment to expand or improve in rural areas--
``(1) 911 access;
``(2) integrated interoperable emergency communications,
including multiuse networks that provide commercial or
transportation information services in addition to emergency
communications services;
``(3) homeland security communications;
``(4) transportation safety communications; or
``(5) location technologies used outside an urbanized area.
``(b) Loan Security.--Government-imposed fees related to
emergency communications (including State or local 911 fees)
may be considered to be security for a loan under this
section.
``(c) Emergency Communications Equipment Providers.--The
Secretary may make a loan under this section to an emergency
communication equipment provider to expand or improve 911
access or other communications or technologies described in
subsection (a) if the local government that has jurisdiction
over the project is not allowed to acquire the debt resulting
from the loan.
``(d) Authorization of Appropriations.--The Secretary shall
use to make loans under this section any funds otherwise made
available for telephone loans for each of fiscal years 2008
through 2012.''.
SEC. 6108. ELECTRIC LOANS FOR RENEWABLE ENERGY.
Title III of the Rural Electrification Act of 1936 is
amended by inserting after section 316 (7 U.S.C. 940f) the
following:
``SEC. 317. ELECTRIC LOANS FOR RENEWABLE ENERGY.
``(a) Definition of Renewable Energy Source.--In this
section, the term `renewable energy source' means an energy
conversion system fueled from a solar, wind, hydropower,
biomass, or geothermal source of energy.
``(b) Loans.--In addition to any other funds or authorities
otherwise made available under this Act, the Secretary may
make electric loans under this title for electric generation
from renewable energy resources for resale to rural and
nonrural residents.
``(c) Rate.--The rate of a loan under this section shall be
equal to the average tax-exempt municipal bond rate of
similar maturities.''.
SEC. 6109. BONDING REQUIREMENTS.
Title III of the Rural Electrification Act of 1936 is
amended by inserting after section 317 (as added by section
6108) the following:
``SEC. 318. BONDING REQUIREMENTS.
``The Secretary shall review the bonding requirements for
all programs administered by the Rural Utilities Service
under this Act to ensure that bonds are not required if--
``(1) the interests of the Secretary are adequately
protected by product warranties; or
``(2) the costs or conditions associated with a bond exceed
the benefit of the bond.''.
SEC. 6110. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN
RURAL AREAS.
(a) In General.--Section 601 of the Rural Electrification
Act of 1936 (7 U.S.C. 950bb) is amended to read as follows:
``SEC. 601. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES
IN RURAL AREAS.
``(a) Purpose.--The purpose of this section is to provide
loans and loan guarantees to provide funds for the costs of
the construction, improvement, and acquisition of facilities
and equipment for broadband service in rural areas.
``(b) Definitions.--In this section:
``(1) Broadband service.--The term `broadband service'
means any technology identified by the Secretary as having
the capacity to transmit data to enable a subscriber to the
service to originate and receive high-quality voice, data,
graphics, and video.
``(2) Incumbent service provider.--The term `incumbent
service provider', with respect to an application submitted
under this section, means an entity that, as of the date of
submission of the application, is providing broadband service
to not less than 5 percent of the households in the service
territory proposed in the application.
``(3) Rural area.--
``(A) In general.--The term `rural area' means any area
other than--
``(i) an area described in clause (i) or (ii) of section
343(a)(13)(A) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1991(a)(13)(A)); and
``(ii) a city, town, or incorporated area that has a
population of greater than 20,000 inhabitants.
``(B) Urban area growth.--The Secretary may, by regulation
only, consider an area described in section
343(a)(13)(F)(i)(I) of that Act to not be a rural area for
purposes of this section.
``(c) Loans and Loan Guarantees.--
``(1) In general.--The Secretary shall make or guarantee
loans to eligible entities described in subsection (d) to
provide funds for the construction, improvement, or
acquisition of facilities and equipment for the provision of
broadband service in rural areas.
``(2) Priority.--In making or guaranteeing loans under
paragraph (1), the Secretary shall give the highest priority
to applicants that offer to provide broadband service to the
greatest proportion of households that, prior to the
provision of the broadband service, had no incumbent service
provider.
``(d) Eligibility.--
``(1) Eligible entities.--
``(A) In general.--To be eligible to obtain a loan or loan
guarantee under this section, an entity shall--
``(i) demonstrate the ability to furnish, improve, or
extend a broadband service to a rural area;
``(ii) submit to the Secretary a loan application at such
time, in such manner, and containing such information as the
Secretary may require; and
``(iii) agree to complete buildout of the broadband service
described in the loan application by not later than 3 years
after the initial date on which proceeds from the loan made
or guaranteed under this section are made available.
``(B) Limitation.--An eligible entity that provides
telecommunications or broadband service to at least 20
percent of the households in the United States may not
receive an amount of funds under this section for a fiscal
year in excess of 15 percent of the funds authorized and
appropriated under subsection (k) for the fiscal year.
``(2) Eligible projects.--
``(A) In general.--Except as provided in subparagraphs (B)
and (C), the proceeds of a loan made or guaranteed under this
section may be used to carry out a project in a proposed
service territory only if, as of the date on which the
application for the loan or loan guarantee is submitted--
``(i) not less than 25 percent of the households in the
proposed service territory is offered broadband service by
not more than 1 incumbent service provider; and
``(ii) broadband service is not provided in any part of the
proposed service territory by 3 or more incumbent service
providers.
``(B) Exception to 25 percent requirement.--Subparagraph
(A)(i) shall not apply to the proposed service territory of a
project if a loan or loan guarantee has been made under this
section to the applicant to provide broadband service in the
proposed service territory.
``(C) Exception to 3 or more incumbent service provider
requirement.--
``(i) In general.--Except as provided in clause (ii),
subparagraph (A)(ii) shall not apply to an incumbent service
provider that is upgrading broadband service to the existing
territory of the incumbent service provider.
``(ii) Exception.--Clause (i) shall not apply if the
applicant is eligible for funding under another title of this
Act.
``(3) Equity and market survey requirements.--
[[Page H4555]]
``(A) In general.--The Secretary may require an entity to
provide a cost share in an amount not to exceed 10 percent of
the amount of the loan or loan guarantee requested in the
application of the entity, unless the Secretary determines
that a higher percentage is required for financial
feasibility.
``(B) Market survey.--
``(i) In general.--The Secretary may require an entity that
proposes to have a subscriber projection of more than 20
percent of the broadband service market in a rural area to
submit to the Secretary a market survey.
``(ii) Less than 20 percent.--The Secretary may not require
an entity that proposes to have a subscriber projection of
less than 20 percent of the broadband service market in a
rural area to submit to the Secretary a market survey.
``(4) State and local governments and indian tribes.--
Subject to paragraph (1), a State or local government
(including any agency, subdivision, or instrumentality
thereof (including consortia thereof)) and an Indian tribe
shall be eligible for a loan or loan guarantee under this
section to provide broadband services to a rural area.
``(5) Notice requirement.--The Secretary shall publish a
notice of each application for a loan or loan guarantee under
this section describing the application, including--
``(A) the identity of the applicant;
``(B) each area proposed to be served by the applicant; and
``(C) the estimated number of households without
terrestrial-based broadband service in those areas.
``(6) Paperwork reduction.--The Secretary shall take steps
to reduce, to the maximum extent practicable, the cost and
paperwork associated with applying for a loan or loan
guarantee under this section by first-time applicants
(particularly first-time applicants who are small and start-
up broadband service providers), including by providing for a
new application that maintains the ability of the Secretary
to make an analysis of the risk associated with the loan
involved.
``(7) Preapplication process.--The Secretary shall
establish a process under which a prospective applicant may
seek a determination of area eligibility prior to preparing a
loan application under this section.
``(e) Broadband Service.--
``(1) In general.--The Secretary shall, from time to time
as advances in technology warrant, review and recommend
modifications of rate-of-data transmission criteria for
purposes of the identification of broadband service
technologies under subsection (b)(1).
``(2) Prohibition.--The Secretary shall not establish
requirements for bandwidth or speed that have the effect of
precluding the use of evolving technologies appropriate for
rural areas.
``(f) Technological Neutrality.--For purposes of
determining whether to make a loan or loan guarantee for a
project under this section, the Secretary shall use criteria
that are technologically neutral.
``(g) Terms and Conditions for Loans and Loan Guarantees.--
``(1) In general.--Notwithstanding any other provision of
law, a loan or loan guarantee under this section shall--
``(A) bear interest at an annual rate of, as determined by
the Secretary--
``(i) in the case of a direct loan, a rate equivalent to--
``(I) the cost of borrowing to the Department of the
Treasury for obligations of comparable maturity; or
``(II) 4 percent; and
``(ii) in the case of a guaranteed loan, the current
applicable market rate for a loan of comparable maturity; and
``(B) have a term of such length, not exceeding 35 years,
as the borrower may request, if the Secretary determines that
the loan is adequately secured.
``(2) Term.--In determining the term of a loan or loan
guarantee, the Secretary shall consider whether the recipient
is or would be serving an area that is not receiving
broadband services.
``(3) Recurring revenue.--The Secretary shall consider the
existing recurring revenues of the entity at the time of
application in determining an adequate level of credit
support.
``(h) Adequacy of Security.--
``(1) In general.--The Secretary shall ensure that the type
and amount of, and method of security used to secure, any
loan or loan guarantee under this section is commensurate to
the risk involved with the loan or loan guarantee,
particularly in any case in which the loan or loan guarantee
is issued to a financially strong and stable entity, as
determined by the Secretary.
``(2) Determination of amount and method of security.--In
determining the amount of, and method of security used to
secure, a loan or loan guarantee under this section, the
Secretary shall consider reducing the security in a rural
area that does not have broadband service.
``(i) Use of Loan Proceeds to Refinance Loans for
Deployment of Broadband Service.--Notwithstanding any other
provision of this Act, the proceeds of any loan made or
guaranteed by the Secretary under this Act may be used by the
recipient of the loan for the purpose of refinancing an
outstanding obligation of the recipient on another
telecommunications loan made under this Act if the use of the
proceeds for that purpose will support the construction,
improvement, or acquisition of facilities and equipment for
the provision of broadband service in rural areas.
``(j) Reports.--Not later than 1 year after the date of
enactment of the Food, Conservation, and Energy Act of 2008,
and annually thereafter, the Administrator shall submit to
Congress a report that describes the extent of participation
in the loan and loan guarantee program under this section for
the preceding fiscal year, including a description of --
``(1) the number of loans applied for and provided under
this section;
``(2)(A) the communities proposed to be served in each loan
application submitted for the fiscal year; and
``(B) the communities served by projects funded by loans
and loan guarantees provided under this section;
``(3) the period of time required to approve each loan
application under this section;
``(4) any outreach activities carried out by the Secretary
to encourage entities in rural areas without broadband
service to submit applications under this section;
``(5) the method by which the Secretary determines that a
service enables a subscriber to originate and receive high-
quality voice, data, graphics, and video for purposes of
subsection (b)(1); and
``(6) each broadband service, including the type and speed
of broadband service, for which assistance was sought, and
each broadband service for which assistance was provided,
under this section.
``(k) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$25,000,000 for each of fiscal years 2008 through 2012, to
remain available until expended.
``(2) Allocation of funds.--
``(A) In general.--From amounts made available for each
fiscal year under this subsection, the Secretary shall--
``(i) establish a national reserve for loans and loan
guarantees to eligible entities in States under this section;
and
``(ii) allocate amounts in the reserve to each State for
each fiscal year for loans and loan guarantees to eligible
entities in the State.
``(B) Amount.--The amount of an allocation made to a State
for a fiscal year under subparagraph (A) shall bear the same
ratio to the amount of allocations made for all States for
the fiscal year as--
``(i) the number of communities with a population of 2,500
inhabitants or less in the State; bears to
``(ii) the number of communities with a population of 2,500
inhabitants or less in all States.
``(C) Unobligated amounts.--Any amounts in the reserve
established for a State for a fiscal year under subparagraph
(B) that are not obligated by April 1 of the fiscal year
shall be available to the Secretary to make loans and loan
guarantees under this section to eligible entities in any
State, as determined by the Secretary.
``(l) Termination of Authority.--No loan or loan guarantee
may be made under this section after September 30, 2012.''.
(b) Regulations.--The Secretary may implement the amendment
made by subsection (a) through the promulgation of an interim
regulation.
(c) Application.--The amendment made by subsection (a)
shall not apply to--
(1) an application submitted under section 601 of the Rural
Electrification Act of 1936 (7 U.S.C. 950bb) (as it existed
before the amendment made by subsection (a)) that--
(A) was pending on the date that is 45 days prior to the
date of enactment of this Act; and
(B) is pending on the date of enactment of this Act; or
(2) a petition for reconsideration of a decision on an
application described in paragraph (1).
SEC. 6111. NATIONAL CENTER FOR RURAL TELECOMMUNICATIONS
ASSESSMENT.
Title VI of the Rural Electrification Act of 1936 (7 U.S.C.
950bb et seq.) is amended by adding at the end the following:
``SEC. 602. NATIONAL CENTER FOR RURAL TELECOMMUNICATIONS
ASSESSMENT.
``(a) Designation of Center.--The Secretary shall designate
an entity to serve as the National Center for Rural
Telecommunications Assessment (referred to in this section as
the `Center').
``(b) Criteria.--In designating the Center under subsection
(a), the Secretary shall take into consideration the
following criteria:
``(1) The Center shall be an entity that demonstrates to
the Secretary--
``(A) a focus on rural policy research; and
``(B) a minimum of 5 years of experience relating to rural
telecommunications research and assessment.
``(2) The Center shall be capable of assessing broadband
services in rural areas.
``(3) The Center shall have significant experience
involving other rural economic development centers and
organizations with respect to the assessment of rural
policies and the formulation of policy solutions at the
Federal, State, and local levels.
``(c) Board of Directors.--The Center shall be managed by a
board of directors, which shall be responsible for the duties
of the Center described in subsection (d).
``(d) Duties.--The Center shall--
``(1) assess the effectiveness of programs carried out
under this title in increasing
[[Page H4556]]
broadband penetration and purchase in rural areas, especially
in rural communities identified by the Secretary as having no
broadband service before the provision of a loan or loan
guarantee under this title;
``(2) work with existing rural development centers selected
by the Center to identify policies and initiatives at the
Federal, State, and local levels that have increased
broadband penetration and purchase in rural areas and provide
recommendations to Federal, State, and local policymakers on
effective strategies to bring affordable broadband services
to residents of rural areas, particularly residents located
outside of the municipal boundaries of a rural city or town;
and
``(3) develop and publish reports describing the activities
carried out by the Center under this section.
``(e) Reporting Requirements.--Not later than December 1 of
each applicable fiscal year, the board of directors of the
Center shall submit to Congress and the Secretary a report
describing the activities carried out by the Center during
the preceding fiscal year and the results of any research
conducted by the Center during that fiscal year, including--
``(1) an assessment of each program carried out under this
title; and
``(2) an assessment of the effects of the policy
initiatives identified under subsection (d)(2).
``(f) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$1,000,000 for each of fiscal years 2008 through 2012.''.
SEC. 6112. COMPREHENSIVE RURAL BROADBAND STRATEGY.
(a) In General.--Not later than 1 year after the date of
enactment of this Act, the Chairman of the Federal
Communications Commission, in coordination with the
Secretary, shall submit to Congress a report describing a
comprehensive rural broadband strategy that includes--
(1) recommendations--
(A) to promote interagency coordination of Federal agencies
in regards to policies, procedures, and targeted resources,
and to streamline or otherwise improve and streamline the
policies, programs, and services;
(B) to coordinate existing Federal rural broadband or rural
initiatives;
(C) to address both short- and long-term needs assessments
and solutions for a rapid build-out of rural broadband
solutions and application of the recommendations for Federal,
State, regional, and local government policymakers; and
(D) to identify how specific Federal agency programs and
resources can best respond to rural broadband requirements
and overcome obstacles that currently impede rural broadband
deployment; and
(2) a description of goals and timeframes to achieve the
purposes of the report.
(b) Updates.--The Chairman of the Federal Communications
Commission, in coordination with the Secretary, shall update
and evaluate the report described in subsection (a) during
the third year after the date of enactment of this Act.
SEC. 6113. STUDY ON RURAL ELECTRIC POWER GENERATION.
(a) In General.--The Secretary shall conduct a study on the
electric power generation needs in rural areas of the United
States.
(b) Components.--The study shall include an examination
of--
(1) generation in various areas in rural areas of the
United States, particularly by rural electric cooperatives;
(2) financing available for capacity, including financing
available through programs authorized under the Rural
Electrification Act of 1936 (7 U.S.C. 901 et seq.);
(3) the impact of electricity costs on consumers and local
economic development;
(4) the ability of fuel feedstock technology to meet
regulatory requirements, such as carbon capture and
sequestration; and
(5) any other factors that the Secretary considers
appropriate.
(c) Report.--Not later than 60 days after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report containing the findings of the study under
this section.
Subtitle C--Miscellaneous
SEC. 6201. DISTANCE LEARNING AND TELEMEDICINE.
(a) In General.--Section 2333(c)(1) of the Food,
Agriculture, Conservation and Trade Act of 1990 (7 U.S.C.
Sec. 950aaa-2(a)(1)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(C) libraries.''.
(b) Authorization of Appropriations.--Section 2335A of the
Food, Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 950aaa-5) is amended by striking ``2007'' and
inserting ``2012''.
(c) Conforming Amendment.--Section 1(b) of Public Law 102-
551 (7 U.S.C. 950aaa note; Public Law 102-551) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 6202. VALUE-ADDED AGRICULTURAL MARKET DEVELOPMENT
PROGRAM GRANTS.
(a) Definitions.--Section 231 of the Agricultural Risk
Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-
224) is amended by striking subsection (a) and inserting the
following:
``(a) Definitions.--In this section:
``(1) Beginning farmer or rancher.--The term `beginning
farmer or rancher' has the meaning given the term in section
343(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1991(a)).
``(2) Family farm.--The term `family farm' has the meaning
given the term in section 761.2 of title 7, Code of Federal
Regulations (as in effect on December 30, 2007).
``(3) Mid-tier value chain.--The term `mid-tier value
chain' means local and regional supply networks that link
independent producers with businesses and cooperatives that
market value-added agricultural products in a manner that--
``(A) targets and strengthens the profitability and
competitiveness of small and medium-sized farms and ranches
that are structured as a family farm; and
``(B) obtains agreement from an eligible agricultural
producer group, farmer or rancher cooperative, or majority-
controlled producer-based business venture that is engaged in
the value chain on a marketing strategy.
``(4) Socially disadvantaged farmer or rancher.--The term
`socially disadvantaged farmer or rancher' has the meaning
given the term in section 355(e) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2003(e)).
``(5) Value-added agricultural product.--The term `value-
added agricultural product' means any agricultural commodity
or product that--
``(A)(i) has undergone a change in physical state;
``(ii) was produced in a manner that enhances the value of
the agricultural commodity or product, as demonstrated
through a business plan that shows the enhanced value, as
determined by the Secretary;
``(iii) is physically segregated in a manner that results
in the enhancement of the value of the agricultural commodity
or product;
``(iv) is a source of farm- or ranch-based renewable
energy, including E-85 fuel; or
``(v) is aggregated and marketed as a locally-produced
agricultural food product; and
``(B) as a result of the change in physical state or the
manner in which the agricultural commodity or product was
produced, marketed, or segregated--
``(i) the customer base for the agricultural commodity or
product is expanded; and
``(ii) a greater portion of the revenue derived from the
marketing, processing, or physical segregation of the
agricultural commodity or product is available to the
producer of the commodity or product.''.
(b) Grant Program.--Section 231(b) of the Agricultural Risk
Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-
224) is amended--
(1) in paragraph (1), by striking ``paragraph (4)'' and
inserting ``paragraph (7)''; and
(2) by striking paragraph (4) and inserting the following:
``(4) Term.--A grant under this subsection shall have a
term that does not exceed 3 years.
``(5) Simplified application.--The Secretary shall offer a
simplified application form and process for project proposals
requesting less than $50,000.
``(6) Priority.--In awarding grants under this subsection,
the Secretary shall give priority to projects that contribute
to increasing opportunities for--
``(A) beginning farmers or ranchers;
``(B) socially disadvantaged farmers or ranchers; and
``(C) operators of small- and medium-sized farms and
ranches that are structured as a family farm.
``(7) Funding.--
``(A) Mandatory funding.--On October 1, 2008, of the funds
of the Commodity Credit Corporation, the Secretary shall make
available to carry out this subsection $15,000,000, to remain
available until expended.
``(B) Discretionary funding.--There is authorized to be
appropriated to carry out this subsection $40,000,000 for
each of fiscal years 2008 through 2012.
``(C) Reservation of funds for projects to benefit
beginning farmers or ranchers, socially disadvantaged farmers
or ranchers, and mid-tier value chains.--
``(i) In general.--The Secretary shall reserve 10 percent
of the amounts made available for each fiscal year under this
paragraph to fund projects that benefit beginning farmers or
ranchers or socially disadvantaged farmers or ranchers.
``(ii) Mid-tier value chains.--The Secretary shall reserve
10 percent of the amounts made available for each fiscal year
under this paragraph to fund applications of eligible
entities described in paragraph (1) that propose to develop
mid-tier value chains.
``(iii) Unobligated amounts.--Any amounts in the reserves
for a fiscal year established under clauses (i) and (ii) that
are not obligated by June 30 of the fiscal year shall be
available to the Secretary to make grants under this
subsection to eligible entities in any State, as determined
by the Secretary.''.
SEC. 6203. AGRICULTURE INNOVATION CENTER DEMONSTRATION
PROGRAM.
Section 6402 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 1621 note; Public Law 107-171) is amended
by striking subsection (i) and inserting the following:
[[Page H4557]]
``(i) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$6,000,000 for each of fiscal years 2008 through 2012.''.
SEC. 6204. RURAL FIREFIGHTERS AND EMERGENCY MEDICAL SERVICE
ASSISTANCE PROGRAM.
Section 6405 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 2655) is amended to read as follows:
``SEC. 6405. RURAL FIREFIGHTERS AND EMERGENCY MEDICAL SERVICE
ASSISTANCE PROGRAM.
``(a) Definition of Emergency Medical Services.--In this
section:
``(1) In general.--The term `emergency medical services'
means resources used by a public or nonprofit entity to
deliver medical care outside of a medical facility under
emergency conditions that occur as a result of--
``(A) the condition of a patient; or
``(B) a natural disaster or related condition.
``(2) Inclusion.--The term `emergency medical services'
includes services (whether compensated or volunteer)
delivered by an emergency medical services provider or other
provider recognized by the State involved that is licensed or
certified by the State as--
``(A) an emergency medical technician or the equivalent (as
determined by the State);
``(B) a registered nurse;
``(C) a physician assistant; or
``(D) a physician that provides services similar to
services provided by such an emergency medical services
provider.
``(b) Grants.--The Secretary shall award grants to eligible
entities--
``(1) to enable the entities to provide for improved
emergency medical services in rural areas; and
``(2) to pay the cost of training firefighters and
emergency medical personnel in firefighting, emergency
medical practices, and responding to hazardous materials and
bioagents in rural areas.
``(c) Eligibility.--To be eligible to receive a grant under
this section, an entity shall--
``(1) be--
``(A) a State emergency medical services office;
``(B) a State emergency medical services association;
``(C) a State office of rural health or an equivalent
agency;
``(D) a local government entity;
``(E) an Indian tribe (as defined in section 4 of the
Indian Self-Determination and Education Assistance Act (25
U.S.C. 450b));
``(F) a State or local ambulance provider; or
``(G) any other public or nonprofit entity determined
appropriate by the Secretary; and
``(2) prepare and submit to the Secretary an application at
such time, in such manner, and containing such information as
the Secretary may require, that includes--
``(A) a description of the activities to be carried out
under the grant; and
``(B) an assurance that the applicant will comply with the
matching requirement of subsection (f).
``(d) Use of Funds.--An entity shall use amounts received
under a grant made under subsection (b) only in a rural
area--
``(1) to hire or recruit emergency medical service
personnel;
``(2) to recruit or retain volunteer emergency medical
service personnel;
``(3) to train emergency medical service personnel in
emergency response, injury prevention, safety awareness, or
other topics relevant to the delivery of emergency medical
services;
``(4) to fund training to meet State or Federal
certification requirements;
``(5) to provide training for firefighters or emergency
medical personnel for improvements to the training facility,
equipment, curricula, or personnel;
``(6) to develop new ways to educate emergency health care
providers through the use of technology-enhanced educational
methods (such as distance learning);
``(7) to acquire emergency medical services vehicles,
including ambulances;
``(8) to acquire emergency medical services equipment,
including cardiac defibrillators;
``(9) to acquire personal protective equipment for
emergency medical services personnel as required by the
Occupational Safety and Health Administration; or
``(10) to educate the public concerning cardiopulmonary
resuscitation (CPR), first aid, injury prevention, safety
awareness, illness prevention, or other related emergency
preparedness topics.
``(e) Preference.--In awarding grants under this section,
the Secretary shall give preference to--
``(1) applications that reflect a collaborative effort by 2
or more of the entities described in subparagraphs (A)
through (G) of subsection (c)(1); and
``(2) applications submitted by entities that intend to use
amounts provided under the grant to fund activities described
in any of paragraphs (1) through (5) of subsection (d).
``(f) Matching Requirement.--The Secretary may not make a
grant under this section to an entity unless the entity makes
available (directly or through contributions from other
public or private entities) non-Federal contributions toward
the activities to be carried out under the grant in an amount
equal to at least 5 percent of the amount received under the
grant.
``(g) Authorization of Appropriations.--
``(1) In general.--There is authorized to be appropriated
to the Secretary to carry out this section not more than
$30,000,000 for each of fiscal years 2008 through 2012.
``(2) Administrative costs.--Not more than 5 percent of the
amount appropriated under paragraph (1) for a fiscal year may
be used for administrative expenses incurred in carrying out
this section.''.
SEC. 6205. INSURANCE OF LOANS FOR HOUSING AND RELATED
FACILITIES FOR DOMESTIC FARM LABOR.
Section 514(f)(3) of the Housing Act of 1949 (42 U.S.C.
1484(f)(3)) is amended by striking ``or the handling of such
commodities in the unprocessed stage'' and inserting ``, the
handling of agricultural or aquacultural commodities in the
unprocessed stage, or the processing of agricultural or
aquacultural commodities''.
SEC. 6206. STUDY OF RURAL TRANSPORTATION ISSUES.
(a) In General.--The Secretary of Agriculture and the
Secretary of Transportation shall jointly conduct a study of
transportation issues regarding the movement of agricultural
products, domestically produced renewable fuels, and
domestically produced resources for the production of
electricity for rural areas of the United States, and
economic development in those areas.
(b) Inclusions.--The study shall include an examination
of--
(1) the importance of freight transportation, including
rail, truck, and barge, to--
(A) the delivery of equipment, seed, fertilizer, and other
such products important to the development of agricultural
commodities and products;
(B) the movement of agricultural commodities and products
to market;
(C) the delivery of ethanol and other renewable fuels;
(D) the delivery of domestically produced resources for use
in the generation of electricity for rural areas;
(E) the location of grain elevators, ethanol plants, and
other facilities;
(F) the development of manufacturing facilities in rural
areas; and
(G) the vitality and economic development of rural
communities;
(2) the sufficiency in rural areas of transportation
capacity, the sufficiency of competition in the
transportation system, the reliability of transportation
services, and the reasonableness of transportation rates;
(3) the sufficiency of facility investment in rural areas
necessary for efficient and cost-effective transportation;
and
(4) the accessibility to shippers in rural areas of Federal
processes for the resolution of grievances arising within
various transportation modes.
(c) Report to Congress.--Not later than 1 year after the
date of enactment of this Act, the Secretary and the
Secretary of Transportation shall submit to Congress a report
that contains the results of the study required by subsection
(a).
Subtitle D--Housing Assistance Council
SEC. 6301. SHORT TITLE.
This subtitle may be cited as the ``Housing Assistance
Council Authorization Act of 2008''.
SEC. 6302. ASSISTANCE TO HOUSING ASSISTANCE COUNCIL.
(a) Use.--The Secretary of Housing and Urban Development
may provide financial assistance to the Housing Assistance
Council for use by the Council to develop the ability and
capacity of community-based housing development organizations
to undertake community development and affordable housing
projects and programs in rural areas. Assistance provided by
the Secretary under this section may be used by the Housing
Assistance Council for--
(1) technical assistance, training, support, research, and
advice to develop the business and administrative
capabilities of rural community-based housing development
organizations;
(2) loans, grants, or other financial assistance to rural
community-based housing development organizations to carry
out community development and affordable housing activities
for low- and moderate-income families; and
(3) such other activities as may be determined by the
Secretary of Housing and Urban Development and the Housing
Assistance Council.
(b) Authorization of Appropriations.--There is authorized
to be appropriated for financial assistance under this
section for the Housing Assistance Council $10,000,000 for
each of fiscal years 2009 through 2011.
SEC. 6303. AUDITS AND REPORTS.
(a) Audit.--
(1) In general.--The financial transactions and activities
of the Housing Assistance Council shall be audited annually
by an independent certified public accountant or an
independent licensed public accountant certified or licensed
by a regulatory authority of a State or other political
subdivision of the United States.
(2) Requirements of audits.--The Comptroller General of the
United States may rely on any audit completed under paragraph
(1), if the audit complies with--
(A) the annual programmatic and financial examination
requirements established in OMB Circular A-133; and
(B) generally accepted government auditing standards.
(3) Report to congress.--The Comptroller General shall
submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representative a report detailing each audit
completed under paragraph (1).
[[Page H4558]]
(b) GAO Report.--The Comptroller General of the United
States shall conduct a study and submit a report to the
Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representative on the use of any funds appropriated to the
Housing Assistance Council over the past 7 years.
SEC. 6304. PERSONS NOT LAWFULLY PRESENT IN THE UNITED STATES.
Aliens who are not lawfully present in the United States
shall be ineligible for financial assistance under this
subtitle, as provided and defined by section 214 of the
Housing and Community Development Act of 1980 (42 U.S.C.
1436a). Nothing in this subtitle shall be construed to alter
the restrictions or definitions in such section 214.
SEC. 6305. LIMITATION ON USE OF AUTHORIZED AMOUNTS.
None of the amounts authorized by this subtitle may be used
to lobby or retain a lobbyist for the purpose of influencing
a Federal, State, or local governmental entity or officer.
TITLE VII--RESEARCH AND RELATED MATTERS
Subtitle A--National Agricultural Research, Extension, and Teaching
Policy Act of 1977
SEC. 7101. DEFINITIONS.
(a) In General.--Section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3103) is amended--
(1) in paragraph (4)--
(A) by redesignating subparagraphs (A) through (E) as
clauses (i) through (v), respectively;
(B) by striking ``(4) The terms'' and inserting the
following:
``(4) College and university.--
``(A) In general.--The terms''; and
(C) by adding at the end the following:
``(B) Inclusions.--The terms `college' and `university'
include a research foundation maintained by a college or
university described in subparagraph (A).'';
(2) by redesignating paragraphs (5) through (8), (9)
through (11), (12) through (14), (15), (16), (17), and (18)
as paragraphs (6) through (9), (11) through (13), (15)
through (17), (20), (5), (18), and (19), respectively, and
moving the paragraphs so as to appear in alphabetical and
numerical order;
(3) in paragraph (9) (as redesignated by paragraph (2))--
(A) by striking ``renewable natural resources'' and
inserting ``renewable energy and natural resources''; and
(B) by striking subparagraph (F) and inserting the
following:
``(F) Soil, water, and related resource conservation and
improvement.'';
(4) by inserting after paragraph (9) (as so redesignated)
the following:
``(10) Hispanic-serving agricultural colleges and
universities.--
``(A) In general.--The term `Hispanic-serving agricultural
colleges and universities' means colleges or universities
that--
``(i) qualify as Hispanic-serving institutions; and
``(ii) offer associate, bachelors, or other accredited
degree programs in agriculture-related fields.
``(B) Exception.--The term `Hispanic-serving agricultural
colleges and universities' does not include 1862 institutions
(as defined in section 2 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7601)).'';
(5) by striking paragraph (11) (as so redesignated) and
inserting the following:
``(11) Hispanic-serving institution.--The term `Hispanic-
serving institution' has the meaning given the term in
section 502 of the Higher Education Act of 1965 (20 U.S.C.
1101a).''; and
(6) by inserting after paragraph (13) (as so redesignated)
the following:
``(14) NLGCA institution; non-land-grant college of
agriculture.--
``(A) In general.--The terms `NLGCA Institution' and `non-
land-grant college of agriculture' mean a public college or
university offering a baccalaureate or higher degree in the
study of agriculture or forestry.
``(B) Exclusions.--The terms `NLGCA Institution' and `non-
land-grant college of agriculture' do not include--
``(i) Hispanic-serving agricultural colleges and
universities; or
``(ii) any institution designated under--
``(I) the Act of July 2, 1862 (commonly known as the `First
Morrill Act'; 7 U.S.C. 301 et seq.);
``(II) the Act of August 30, 1890 (commonly known as the
`Second Morrill Act') (7 U.S.C. 321 et seq.);
``(III) the Equity in Educational Land-Grant Status Act of
1994 (Public Law 103-382; 7 U.S.C. 301 note); or
``(IV) Public Law 87-788 (commonly known as the `McIntire-
Stennis Cooperative Forestry Act') (16 U.S.C. 582a et
seq.).''.
(b) Conforming Amendments.--
(1) Section 2(3) of the Research Facilities Act (7 U.S.C.
390(3)) is amended by striking ``section 1404(8) of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103(8))'' and inserting
``section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)''.
(2) Section 2(k) of the Competitive, Special, and
Facilities Research Grant Act (7 U.S.C. 450i(k)) is amended
in the second sentence by striking ``section 1404(17) of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103(17))'' and inserting
``section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)''.
(3) Section 18(a)(3)(B) of the Food and Nutrition Act of
2008 (7 U.S.C. 2027(a)(3)(B)) is amended by striking
``section 1404(5) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3103(5)))'' and inserting ``section 1404 of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3103))''.
(4) Section 1473 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319) is
amended in the first sentence by striking ``section 1404(16)
of this title'' and inserting ``section 1404(18)''.
(5) Section 1619(b) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5801(b)) is amended--
(A) in paragraph (1), by striking ``section 1404(17) of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103(17))'' and inserting
``section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)'';
(B) in paragraph (5), by striking ``section 1404(7) of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103(7))'' and inserting
``section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)'';
and
(C) in paragraph (8), by striking ``section 1404(13) of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103(13))'' and inserting
``section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)''.
(6) Section 125(c)(1)(C) of Public Law 100-238 (5 U.S.C.
8432 note) is amended by striking ``section 1404(5) of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103(5))'' and inserting
``section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)''.
SEC. 7102. NATIONAL AGRICULTURAL RESEARCH, EXTENSION,
EDUCATION, AND ECONOMICS ADVISORY BOARD.
(a) In General.--Section 1408 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3123) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``31'' and inserting
``25''; and
(B) by striking paragraph (3) and inserting the following:
``(3) Membership categories.--The Advisory Board shall
consist of members from each of the following categories:
``(A) 1 member representing a national farm organization.
``(B) 1 member representing farm cooperatives.
``(C) 1 member actively engaged in the production of a food
animal commodity, recommended by a coalition of national
livestock organizations.
``(D) 1 member actively engaged in the production of a
plant commodity, recommended by a coalition of national crop
organizations.
``(E) 1 member actively engaged in aquaculture, recommended
by a coalition of national aquacultural organizations.
``(F) 1 member representing a national food animal science
society.
``(G) 1 member representing a national crop, soil,
agronomy, horticulture, plant pathology, or weed science
society.
``(H) 1 member representing a national food science
organization.
``(I) 1 member representing a national human health
association.
``(J) 1 member representing a national nutritional science
society.
``(K) 1 member representing the land-grant colleges and
universities eligible to receive funds under the Act of July
2, 1862 (7 U.S.C. 301 et seq.).
``(L) 1 member representing the land-grant colleges and
universities eligible to receive funds under the Act of
August 30, 1890 (7 U.S.C. 321 et seq.), including Tuskegee
University.
``(M) 1 member representing the 1994 Institutions (as
defined in section 532 of the Equity in Educational Land-
Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103-
382)).
``(N) 1 member representing NLGCA Institutions.
``(O) 1 member representing Hispanic-serving institutions.
``(P) 1 member representing the American Colleges of
Veterinary Medicine.
``(Q) 1 member engaged in the transportation of food and
agricultural products to domestic and foreign markets.
``(R) 1 member representing food retailing and marketing
interests.
``(S) 1 member representing food and fiber processors.
``(T) 1 member actively engaged in rural economic
development.
``(U) 1 member representing a national consumer interest
group.
``(V) 1 member representing a national forestry group.
``(W) 1 member representing a national conservation or
natural resource group.
``(X) 1 member representing private sector organizations
involved in international development.
``(Y) 1 member representing a national social science
association.'';
[[Page H4559]]
(2) in subsection (g)(1), by striking ``$350,000'' and
inserting ``$500,000''; and
(3) in subsection (h), by striking ``2007'' and inserting
``2012''.
(b) No Effect on Terms.--Nothing in this section or any
amendment made by this section affects the term of any member
of the National Agricultural Research, Extension, Education,
and Economics Advisory Board serving as of the date of
enactment of this Act.
SEC. 7103. SPECIALTY CROP COMMITTEE REPORT.
Section 1408A(c) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3123a(c)) is amended by adding at the end the following:
``(4) Analyses of changes in macroeconomic conditions,
technologies, and policies on specialty crop production and
consumption, with particular focus on the effect of those
changes on the financial stability of producers.
``(5) Development of data that provide applied information
useful to specialty crop growers, their associations, and
other interested beneficiaries in evaluating that industry
from a regional and national perspective.''.
SEC. 7104. RENEWABLE ENERGY COMMITTEE.
The National Agricultural Research, Extension, and Teaching
Policy Act of 1977 is amended by inserting after section
1408A (7 U.S.C. 3123a) the following:
``SEC. 1408B. RENEWABLE ENERGY COMMITTEE.
``(a) Initial Members.--Not later than 90 days after the
date of enactment of this section, the executive committee of
the Advisory Board shall establish and appoint the initial
members of a permanent renewable energy committee.
``(b) Duties.--The permanent renewable energy committee
shall study the scope and effectiveness of research,
extension, and economics programs affecting the renewable
energy industry.
``(c) Nonadvisory Board Members.--
``(1) In general.--An individual who is not a member of the
Advisory Board may be appointed as a member of the renewable
energy committee.
``(2) Service.--A member of the renewable energy committee
shall serve at the discretion of the executive committee.
``(d) Report by Renewable Energy Committee.--Not later than
180 days after the date of establishment of the renewable
energy committee, and annually thereafter, the renewable
energy committee shall submit to the Advisory Board a report
that contains the findings and any recommendations of the
renewable energy committee with respect to the study
conducted under subsection (b).
``(e) Consultation.--In carrying out the duties described
in subsection (b), the renewable energy committee shall
consult with the Biomass Research and Development Technical
Advisory Committee established under section 9008(d) of the
Biomass Research and Development Act of 2000 (7 U.S.C. 8605).
``(f) Matters To Be Considered in Budget Recommendation.--
In preparing the annual budget recommendations for the
Department, the Secretary shall take into consideration those
findings and recommendations contained in the most recent
report of the renewable energy committee under subsection (d)
that are developed by the Advisory Committee.
``(g) Report by the Secretary.--In the budget material
submitted to Congress by the Secretary in connection with the
budget submitted pursuant to section 1105 of title 31, United
States Code, for a fiscal year, the Secretary shall include a
report that describes the ways in which the Secretary
addressed each recommendation of the renewable energy
committee described in subsection (f).''.
SEC. 7105. VETERINARY MEDICINE LOAN REPAYMENT.
(a) In General.--Section 1415A of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3151a) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Determination of Veterinarian Shortage Situations.--
In determining `veterinarian shortage situations', the
Secretary may consider--
``(1) geographical areas that the Secretary determines have
a shortage of veterinarians; and
``(2) areas of veterinary practice that the Secretary
determines have a shortage of veterinarians, such as food
animal medicine, public health, epidemiology, and food
safety.'';
(2) in subsection (c), by adding at the end the following:
``(8) Priority.--In administering the program, the
Secretary shall give priority to agreements with
veterinarians for the practice of food animal medicine in
veterinarian shortage situations.'';
(3) by redesignating subsection (d) as subsection (f); and
(4) by inserting after subsection (c) the following:
``(d) Use of Funds.--None of the funds appropriated to the
Secretary under subsection (f) may be used to carry out
section 5379 of title 5, United States Code.
``(e) Regulations.--Notwithstanding subchapter II of
chapter 5 of title 5, United States Code, not later than 270
days after the date of enactment of this subsection, the
Secretary shall promulgate regulations to carry out this
section.''.
(b) Disapproval of Transfer of Funds.--Congress disapproves
the transfer of funds from the Cooperative State Research,
Education, and Extension Service to the Food Safety and
Inspection Service described in the notice of use of funds
for implementation of the veterinary medicine loan repayment
program authorized by the National Veterinary Medical Service
Act (72 Fed. Reg. 48609 (August 24, 2007)), and such funds
shall be rescinded on the date of enactment of this Act and
made available to the Secretary, without further
appropriation or fiscal year limitation, for use only in
accordance with section 1415A of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3151a) (as amended by subsection (a)).
SEC. 7106. ELIGIBILITY OF UNIVERSITY OF THE DISTRICT OF
COLUMBIA FOR GRANTS AND FELLOWSHIPS FOR FOOD
AND AGRICULTURAL SCIENCES EDUCATION.
Section 1417 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152) is
amended--
(1) in the matter preceding paragraph (1) of subsection
(b), by inserting ``(including the University of the District
of Columbia)'' after ``land-grant colleges and
universities''; and
(2) in subsection (d)(2), by inserting ``(including the
University of the District of Columbia)'' after
``universities''.
SEC. 7107. GRANTS TO 1890 SCHOOLS TO EXPAND EXTENSION
CAPACITY.
Section 1417(b)(4) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3152(b)(4)) is amended by striking ``teaching and research''
and inserting ``teaching, research, and extension''.
SEC. 7108. EXPANSION OF FOOD AND AGRICULTURAL SCIENCES
AWARDS.
Section 1417(i) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(i))
is amended--
(1) in the subsection heading, by striking ``Teaching
Awards'' and inserting ``Teaching, Extension, and Research
Awards''; and
(2) by striking paragraph (1) and inserting the following:
``(1) Establishment.--
``(A) In general.--The Secretary shall establish a National
Food and Agricultural Sciences Teaching, Extension, and
Research Awards program to recognize and promote excellence
in teaching, extension, and research in the food and
agricultural sciences at a college or university.
``(B) Minimum requirement.--The Secretary shall make at
least 1 cash award in each fiscal year to a nominee selected
by the Secretary for excellence in each of the areas of
teaching, extension, and research of food and agricultural
science at a college or university.''.
SEC. 7109. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL
SCIENCES EDUCATION.
(a) Education Teaching Programs.--Section 1417(j) of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3152(j)) is amended--
(1) in the subsection heading, by striking ``Secondary
Education and 2-Year Postsecondary Education Teaching
Programs'' and inserting ``Secondary Education, 2-Year
Postsecondary Education, and Agriculture in the K-12
Classroom''; and
(2) in paragraph (3)--
(A) by striking ``secondary schools, and institutions of
higher education that award an associate's degree'' and
inserting ``secondary schools, institutions of higher
education that award an associate's degree, other
institutions of higher education, and nonprofit
organizations'';
(B) in subparagraph (E), by striking ``and'' at the end;
(C) in subparagraph (F), by striking the period at the end
and inserting ``; and''; and
(D) by adding at the end the following:
``(G) to support current agriculture in the classroom
programs for grades K-12.''.
(b) Report.--Section 1417 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3152) is amended--
(1) by redesignating subsection (l) as subsection (m); and
(2) by inserting after subsection (k) the following:
``(l) Report.--The Secretary shall submit to the Committee
on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate a biennial report detailing the distribution of funds
used to implement the teaching programs under subsection
(j).''.
(c) Authorization of Appropriations.--Section 1417(m) of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (as redesignated by subsection (b)(1)) is
amended by striking ``2007'' and inserting ``2012''.
(d) Effective Date.--The amendments made by subsection (a)
take effect on October 1, 2008.
SEC. 7110. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF
ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM
AGRICULTURAL COMMODITIES AND FOREST PRODUCTS.
(a) In General.--Section 1419 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3154) is repealed.
(b) Conforming Amendment.--Section 1463(a) of the National
Agricultural Research, Extension, and Teaching Policy Act
[[Page H4560]]
of 1977 (7 U.S.C. 3311(a)) is amended by striking ``1419,''.
SEC. 7111. POLICY RESEARCH CENTERS.
Section 1419A of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3155) is
amended--
(1) in subsection (a)(1), by inserting ``(including
commodities, livestock, dairy, and specialty crops)'' after
``agricultural sectors'';
(2) in subsection (b), by inserting ``(including the Food
Agricultural Policy Research Institute, the Agricultural and
Food Policy Center, the Rural Policy Research Institute, and
the National Drought Mitigation Center)'' after ``research
institutions and organizations''; and
(3) in subsection (d), by striking ``2007'' and inserting
``2012''.
SEC. 7112. EDUCATION GRANTS TO ALASKA NATIVE-SERVING
INSTITUTIONS AND NATIVE HAWAIIAN-SERVING
INSTITUTIONS.
Section 759 of the Agriculture, Rural Development, Food and
Drug Administration, and Related Agencies Appropriations Act,
2000 (7 U.S.C. 3242)--
(1) is amended--
(A) in subsection (a)(3), by striking ``2006'' and
inserting ``2012''; and
(B) in subsection (b)--
(i) in paragraph (2)(A), by inserting before the semicolon
at the end the following: ``, including permitting consortia
to designate fiscal agents for the members of the consortia
and to allocate among the members funds made available under
this section''; and
(ii) in paragraph (3), by striking ``2006'' and inserting
``2012'';
(2) is redesignated as section 1419B of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977; and
(3) is moved so as to appear after section 1419A of that
Act (7 U.S.C. 3155).
SEC. 7113. EMPHASIS OF HUMAN NUTRITION INITIATIVE.
Section 1424(b) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174(b))
is amended--
(1) in paragraph (1), by striking ``and,'';
(2) in paragraph (2), by striking the comma at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) proposals that examine the efficacy of current
agriculture policies in promoting the health and welfare of
economically disadvantaged populations;''.
SEC. 7114. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION
RESEARCH PROGRAM.
Section 1424(d) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174(d))
is amended by striking ``2007'' and inserting ``2012''.
SEC. 7115. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND
AGRICULTURAL RESEARCH.
Section 1424A(d) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3174a(d)) is amended by striking ``2007'' and inserting
``2012''.
SEC. 7116. NUTRITION EDUCATION PROGRAM.
(a) In General.--Section 1425 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3175) is amended--
(1) by redesignating subsections (a) through (c) as
subsections (b) through (d), respectively;
(2) by striking the section heading and designation and
inserting the following:
``SEC. 1425. NUTRITION EDUCATION PROGRAM.
``(a) Definition of 1862 Institution and 1890
Institution.--In this section, the terms `1862 Institution'
and `1890 Institution' have the meaning given those terms in
section 2 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7601).'';
(3) in subsection (b) (as redesignated by paragraph (1)),
by striking ``(b) The Secretary'' and inserting the
following:
``(b) Establishment.--The Secretary'';
(4) in subsection (c) (as so redesignated), by striking
``(c) In order to enable'' and inserting the following:
``(c) Employment and Training.--To enable'';
(5) in subsection (d) (as redesignated by paragraph (1))--
(A) by striking ``(d) Beginning'' and inserting the
following:
``(d) Allocation of Funding.--Beginning'';
(B) in paragraph (2), by striking subparagraph (B) and
inserting the following:
``(B) Notwithstanding section 3(d) of the Act of May 8,
1914 (7 U.S.C. 343(d)), the remainder shall be allocated
among the States as follows:
``(i) $100,000 shall be distributed to each 1862
Institution and 1890 Institution.
``(ii) Subject to clause (iii), the remainder shall be
allocated to each State in an amount that bears the same
ratio to the total amount to be allocated under this clause
as--
``(I) the population living at or below 125 percent of the
income poverty guidelines (as prescribed by the Office of
Management and Budget and as adjusted pursuant to section
673(2) of the Community Services Block Grant Act (42 U.S.C.
9902(2))) in the State; bears to
``(II) the total population living at or below 125 percent
of those income poverty guidelines in all States;
as determined by the most recent decennial census at the time
at which each such additional amount is first appropriated.
``(iii)(I) Before any allocation of funds under clause
(ii), for any fiscal year for which the amount of funds
appropriated for the conduct of the expanded food and
nutrition education program exceeds the amount of funds
appropriated for the program for fiscal year 2007, the
following percentage of such excess funds for the fiscal year
shall be allocated to the 1890 Institutions in accordance
with subclause (II):
``(aa) 10 percent for fiscal year 2009.
``(bb) 11 percent for fiscal year 2010.
``(cc) 12 percent for fiscal year 2011.
``(dd) 13 percent for fiscal year 2012.
``(ee) 14 percent for fiscal year 2013.
``(ff) 15 percent for fiscal year 2014 and for each fiscal
year thereafter.
``(II) Funds made available under subclause (I) shall be
allocated to each 1890 Institution in an amount that bears
the same ratio to the total amount to be allocated under this
clause as--
``(aa) the population living at or below 125 percent of the
income poverty guidelines (as prescribed by the Office of
Management and Budget and as adjusted pursuant to section
673(2) of the Community Services Block Grant Act (42 U.S.C.
9902(2))) in the State in which the 1890 Institution is
located; bears to
``(bb) the total population living at or below 125 percent
of those income poverty guidelines in all States in which
1890 Institutions are located;
as determined by the most recent decennial census at the time
at which each such additional amount is first appropriated.
``(iv) Nothing in this subparagraph precludes the Secretary
from developing educational materials and programs for
persons in income ranges above the level designated in this
subparagraph.''; and
(C) by striking paragraph (3); and
(6) by adding at the end the following:
``(e) Complementary Administration.--The Secretary shall
ensure the complementary administration of the expanded food
and nutrition education program by 1862 Institutions and 1890
Institutions in a State.
``(f) Authorization of Appropriations.--There is authorized
to be appropriated to carry out the expanded food and
nutrition education program established under section 3(d) of
the Act of May 8, 1914 (7 U.S.C. 343(d)), and this section
$90,000,000 for each of fiscal years 2009 through 2012.''.
(b) Conforming Amendment.--Section 1588(b) of the Food
Security Act of 1985 (7 U.S.C. 3175e(b)) is amended by
striking ``section 1425(c)(2)'' and inserting ``section
1425(d)(2)''.
(c) Effective Date.--The amendments made by this section
take effect on October 1, 2008.
SEC. 7117. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH
PROGRAMS.
Section 1433(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3195(a))
is amended in the first sentence by striking ``2007'' and
inserting ``2012''.
SEC. 7118. COOPERATION AMONG ELIGIBLE INSTITUTIONS.
Section 1433 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3195) is
amended by adding at the end the following:
``(g) Cooperation Among Eligible Institutions.--The
Secretary, to the maximum extent practicable, shall encourage
eligible institutions to cooperate in setting research
priorities under this section through the conduct of regular
regional and national meetings.''.
SEC. 7119. APPROPRIATIONS FOR RESEARCH ON NATIONAL OR
REGIONAL PROBLEMS.
Section 1434(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(a))
is amended by striking ``2007'' and inserting ``2012''.
SEC. 7120. ANIMAL HEALTH AND DISEASE RESEARCH PROGRAM.
Section 1434(b) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(b))
is amended by inserting after ``universities'' the following:
``(including 1890 Institutions (as defined in section 2 of
the Agricultural Research, Extension, and Education Reform
Act of 1998 (7 U.S.C. 7601)))''.
SEC. 7121. AUTHORIZATION LEVEL FOR EXTENSION AT 1890 LAND-
GRANT COLLEGES.
Section 1444(a)(2) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3221(a)(2)) is amended by striking ``15 percent'' and
inserting ``20 percent''.
SEC. 7122. AUTHORIZATION LEVEL FOR AGRICULTURAL RESEARCH AT
1890 LAND-GRANT COLLEGES.
Section 1445(a)(2) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3222(a)(2)) is amended by striking ``25 percent'' and
inserting ``30 percent''.
SEC. 7123. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES
FACILITIES AT 1890 LAND-GRANT COLLEGES,
INCLUDING TUSKEGEE UNIVERSITY.
Section 1447(b) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3222b(b)) is amended by striking ``2007'' and inserting
``2012''.
SEC. 7124. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES
FACILITIES AT THE DISTRICT OF COLUMBIA LAND-
GRANT UNIVERSITY.
The National Agricultural Research, Extension, and Teaching
Policy Act of 1977 is
[[Page H4561]]
amended by inserting after section 1447 (7 U.S.C. 3222b) the
following:
``SEC. 1447A. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES
FACILITIES AT THE DISTRICT OF COLUMBIA LAND-
GRANT UNIVERSITY.
``(a) Purpose.--It is the intent of Congress to assist the
land-grant university in the District of Columbia established
under section 208 of the District of Columbia Public
Postsecondary Education Reorganization Act (Public Law 93-
471; 88 Stat. 1428) in efforts to acquire, alter, or repair
facilities or relevant equipment necessary for conducting
agricultural research.
``(b) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$750,000 for each of fiscal years 2008 through 2012.''.
SEC. 7125. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES
FACILITIES AND EQUIPMENT AT INSULAR AREA LAND-
GRANT INSTITUTIONS.
The National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3101 et seq.) is amended by
inserting after section 1447A (as added by section 7124) the
following:
``SEC. 1447B. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES
FACILITIES AND EQUIPMENT AT INSULAR AREA LAND-
GRANT INSTITUTIONS.
``(a) Purpose.--It is the intent of Congress to assist the
land-grant institutions in the insular areas in efforts to
acquire, alter, or repair facilities or relevant equipment
necessary for conducting agricultural research.
``(b) Method of Awarding Grants.--Grants awarded pursuant
to this section shall be made in such amounts and under such
terms and conditions as the Secretary determines necessary to
carry out the purposes of this section.
``(c) Regulations.--The Secretary may promulgate such rules
and regulations as the Secretary considers to be necessary to
carry out this section.
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $8,000,000 for
each of fiscal years 2008 through 2012.''.
SEC. 7126. NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS.
Section 1448 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222c)
is amended by striking ``2007'' each place it appears in
subsections (a)(1) and (f) and inserting ``2012''.
SEC. 7127. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND
EXTENSION ACTIVITIES OF 1890 INSTITUTIONS.
Section 1449(c) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3222d(c)) is amended--
(1) in the first sentence--
(A) by striking ``for each of fiscal years 2003 through
2007,''; and
(B) by inserting ``equal'' before ``matching''; and
(2) by striking the second sentence and all that follows
through paragraph (5).
SEC. 7128. HISPANIC-SERVING INSTITUTIONS.
Section 1455 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3241) is
amended--
(1) in subsection (a) by striking ``(or grants without
regard to any requirement for competition)'';
(2) in subsection (b)(1), by striking ``of consortia''; and
(3) in subsection (c)--
(A) by striking ``$20,000,000'' and inserting
``$40,000,000''; and
(B) by striking ``2007'' and inserting ``2012''.
SEC. 7129. HISPANIC-SERVING AGRICULTURAL COLLEGES AND
UNIVERSITIES.
(a) In General.--The National Agricultural Research,
Extension, and Teaching Policy Act of 1977 is amended by
inserting after section 1455 (7 U.S.C. 3241) the following:
``SEC. 1456. HISPANIC-SERVING AGRICULTURAL COLLEGES AND
UNIVERSITIES.
``(a) Definition of Endowment Fund.--In this section, the
term `endowment fund' means the Hispanic-Serving Agricultural
Colleges and Universities Fund established under subsection
(b).
``(b) Endowment.--
``(1) In general.--The Secretary of the Treasury shall
establish in accordance with this subsection a Hispanic-
Serving Agricultural Colleges and Universities Fund.
``(2) Agreements.--The Secretary of the Treasury may enter
into such agreements as are necessary to carry out this
subsection.
``(3) Deposit to the endowment fund.--The Secretary of the
Treasury shall deposit in the endowment fund any--
``(A) amounts made available through Acts of
appropriations, which shall be the endowment fund corpus; and
``(B) interest earned on the endowment fund corpus.
``(4) Investments.--The Secretary of the Treasury shall
invest the endowment fund corpus and income in interest-
bearing obligations of the United States.
``(5) Withdrawals and expenditures.--
``(A) Corpus.--The Secretary of the Treasury may not make a
withdrawal or expenditure from the endowment fund corpus.
``(B) Withdrawals.--On September 30, 2008, and each
September 30 thereafter, the Secretary of the Treasury shall
withdraw the amount of the income from the endowment fund for
the fiscal year and warrant the funds to the Secretary of
Agriculture who, after making adjustments for the cost of
administering the endowment fund, shall distribute the
adjusted income as follows:
``(i) 60 percent shall be distributed among the Hispanic-
serving agricultural colleges and universities on a pro rata
basis based on the Hispanic enrollment count of each
institution.
``(ii) 40 percent shall be distributed in equal shares to
the Hispanic-serving agricultural colleges and universities.
``(6) Endowments.--Amounts made available under this
subsection shall be held and considered to be granted to
Hispanic-serving agricultural colleges and universities to
establish an endowment in accordance with this subsection.
``(7) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary such sums as
are necessary to carry out this subsection for fiscal year
2008 and each fiscal year thereafter.
``(c) Authorization for Annual Payments.--
``(1) In general.--For fiscal year 2008 and each fiscal
year thereafter, there are authorized to be appropriated to
the Department of Agriculture to carry out this subsection an
amount equal to the product obtained by multiplying--
``(A) $80,000; by
``(B) the number of Hispanic-serving agricultural colleges
and universities.
``(2) Payments.--For fiscal year 2008 and each fiscal year
thereafter, the Secretary of the Treasury shall pay to the
treasurer of each Hispanic-serving agricultural college and
university an amount equal to--
``(A) the total amount made available by appropriations
under paragraph (1); divided by
``(B) the number of Hispanic-serving agricultural colleges
and universities.
``(3) Use of funds.--
``(A) In general.--Amounts authorized to be appropriated
under this subsection shall be used in the same manner as is
prescribed for colleges under the Act of August 30, 1890
(commonly known as the `Second Morrill Act') (7 U.S.C. 321 et
seq.).
``(B) Relationship to other law.--Except as otherwise
provided in this subsection, the requirements of that Act
shall apply to Hispanic-serving agricultural colleges and
universities under this section.
``(d) Institutional Capacity-Building Grants.--
``(1) In general.--For fiscal year 2008 and each fiscal
year thereafter, the Secretary shall make grants to assist
Hispanic-serving agricultural colleges and universities in
institutional capacity building (not including alteration,
repair, renovation, or construction of buildings).
``(2) Criteria for institutional capacity-building
grants.--
``(A) Requirements for grants.--The Secretary shall make
grants under this subsection on the basis of a competitive
application process under which Hispanic-serving agricultural
colleges and universities may submit applications to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require.
``(B) Demonstration of need.--
``(i) In general.--As part of an application for a grant
under this subsection, the Secretary shall require the
applicant to demonstrate need for the grant, as determined by
the Secretary.
``(ii) Other sources of funding.--The Secretary may award a
grant under this subsection only to an applicant that
demonstrates a failure to obtain funding for a project after
making a reasonable effort to otherwise obtain the funding.
``(C) Payment of non-federal share.--A grant awarded under
this subsection shall be made only if the recipient of the
grant pays a non-Federal share in an amount that is specified
by the Secretary and based on assessed institutional needs.
``(3) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary such sums as
are necessary to carry out this subsection for fiscal year
2008 and each fiscal year thereafter.
``(e) Competitive Grants Program.--
``(1) In general.--The Secretary shall establish a
competitive grants program to fund fundamental and applied
research at Hispanic-serving agricultural colleges and
universities in agriculture, human nutrition, food science,
bioenergy, and environmental science.
``(2) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary such sums as
are necessary to carry out this subsection for fiscal year
2008 and each fiscal year thereafter.''.
(b) Extension.--Section 3 of the Smith-Lever Act (7 U.S.C.
343) is amended--
(1) in subsection (b), by adding at the end the following:
``(4) Annual appropriation for hispanic-serving
agricultural colleges and universities.--
``(A) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary for payments
to Hispanic-serving agricultural colleges and universities
(as defined in section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3103)) such sums as are necessary to carry out this
paragraph for fiscal year 2008 and each fiscal year
thereafter, to remain available until expended.
``(B) Additional amount.--Amounts made available under this
paragraph shall be in addition to any other amounts made
available under this section to States, the Commonwealth of
Puerto Rico, Guam, or the United States Virgin Islands.
``(C) Administration.--Amounts made available under this
paragraph shall be--
[[Page H4562]]
``(i) distributed on the basis of a competitive application
process to be developed and implemented by the Secretary;
``(ii) paid by the Secretary to the State institutions
established in accordance with the Act of July 2, 1862
(commonly known as the `First Morrill Act') (7 U.S.C. 301 et
seq.); and
``(iii) administered by State institutions through
cooperative agreements with the Hispanic-serving agricultural
colleges and universities in the State in accordance with
regulations promulgated by the Secretary.''; and
(2) in subsection (f)--
(A) in the subsection heading, by inserting ``and Hispanic-
Serving Agricultural Colleges and Universities'' after ``1994
Institutions''; and
(B) by striking ``pursuant to subsection (b)(3)'' and
inserting ``or Hispanic-serving agricultural colleges and
universities in accordance with paragraphs (3) and (4) of
subsection (b)''.
(c) Conforming Amendments.--
(1) Section 2 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7601) is amended--
(A) by redesignating paragraph (6) as paragraph (7); and
(B) by inserting after paragraph (5) the following:
``(6) Hispanic-serving agricultural colleges and
universities.--The term `Hispanic-serving agricultural
colleges and universities' has the meaning given the term in
section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3103).''.
(2) Section 102(c) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7612(c)) is
amended--
(A) in the subsection heading, by inserting ``and Hispanic-
Serving Agricultural Colleges and Universities'' after
``Institutions''; and
(B) in paragraph (1), by striking `` and 1994 Institution''
and inserting ``1994 Institution, and Hispanic-serving
agricultural college and university''.
(3) Section 103(e) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7613(e)) is
amended by adding at the end the following:
``(3) Hispanic-serving agricultural colleges and
universities.--To be eligible to obtain agricultural
extension funds from the Secretary for an activity, each
Hispanic-serving agricultural college and university shall--
``(A) establish a process for merit review of the activity;
and
``(B) review the activity in accordance with such
process.''.
(4) Section 406(b) of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7626(b)) is
amended by striking ``and 1994 Institutions'' and inserting
``, 1994 Institutions, and Hispanic-serving agricultural
colleges and universities''.
SEC. 7130. INTERNATIONAL AGRICULTURAL RESEARCH, EXTENSION,
AND EDUCATION.
Section 1458(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3291(a))
is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``and'' after the
semicolon;
(B) in subparagraph (B), by adding ``and'' at the end; and
(C) by adding at the end the following:
``(C) giving priority to those institutions with existing
memoranda of understanding, agreements, or other formal ties
to United States institutions, or Federal or State
agencies;'';
(2) by striking paragraph (3) and inserting the following:
``(3) enter into agreements with land-grant colleges and
universities, Hispanic-serving agricultural colleges and
universities, the Agency for International Development, and
international organizations (such as the United Nations, the
World Bank, regional development banks, international
agricultural research centers), or other organizations,
institutions, or individuals with comparable goals, to
promote and support--
``(A) the development of a viable and sustainable global
agricultural system;
``(B) antihunger and improved international nutrition
efforts; and
``(C) increased quantity, quality, and availability of
food;'';
(3) in paragraph (7)(A), by striking ``and land-grant
colleges and universities'' and inserting ``, land-grant
colleges and universities, and Hispanic-serving agricultural
colleges and universities'';
(4) in paragraph (9)--
(A) in subparagraph (A), by striking ``or other colleges
and universities'' and inserting ``, Hispanic-serving
agricultural colleges and universities, or other colleges and
universities''; and
(B) in subparagraph (D), by striking ``and'' at the end;
(5) in paragraph (10), by striking the period at the end
and inserting ``; and''; and
(6) by adding at the end the following:
``(11) establish a program for the purpose of providing
fellowships to United States or foreign students to study at
foreign agricultural colleges and universities working under
agreements provided for under paragraph (3).''.
SEC. 7131. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL
SCIENCE AND EDUCATION PROGRAMS.
Section 1459A(c) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3292b(c)) is amended by striking ``2007'' and inserting
``2012''.
SEC. 7132. ADMINISTRATION.
(a) Limitation on Indirect Costs for Agricultural Research,
Education, and Extension Programs.--Section 1462(a) of the
National Agriculture Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3310(a)) is amended--
(1) by striking ``a competitive'' and inserting ``any'';
and
(2) by striking ``19 percent'' and inserting ``22
percent''.
(b) Auditing, Reporting, Bookkeeping, and Administrative
Requirements.--Section 1469(a)(3) of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3315(a)(3)) is amended by striking
``appropriated'' and inserting ``made available''.
SEC. 7133. RESEARCH EQUIPMENT GRANTS.
Section 1462A(e) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3310a(e)) is amended by striking ``2007'' and inserting
``2012''.
SEC. 7134. UNIVERSITY RESEARCH.
Section 1463 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3311) is
amended by striking ``2007'' each place it appears in
subsections (a) and (b) and inserting ``2012''.
SEC. 7135. EXTENSION SERVICE.
Section 1464 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3312) is
amended by striking ``2007'' and inserting ``2012''.
SEC. 7136. SUPPLEMENTAL AND ALTERNATIVE CROPS.
Section 1473D(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3319d(a)) is amended by striking ``2007'' and inserting
``2012''.
SEC. 7137. NEW ERA RURAL TECHNOLOGY PROGRAM.
Subtitle K of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et
seq.) is amended by adding at the end the following:
``SEC. 1473E. NEW ERA RURAL TECHNOLOGY PROGRAM.
``(a) Definition of Community College.--In this section,
the term `community college' means an institution of higher
education (as defined in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001))--
``(1) that admits as regular students individuals who--
``(A) are beyond the age of compulsory school attendance in
the State in which the institution is located; and
``(B) have the ability to benefit from the training offered
by the institution;
``(2) that does not provide an educational program for
which the institution awards a bachelor's degree or an
equivalent degree; and
``(3) that--
``(A) provides an educational program of not less than 2
years that is acceptable for full credit toward such a
degree; or
``(B) offers a 2-year program in engineering, technology,
mathematics, or the physical, chemical, or biological
sciences, designed to prepare a student to work as a
technician or at the semiprofessional level in engineering,
scientific, or other technological fields requiring the
understanding and application of basic engineering,
scientific, or mathematical principles of knowledge.
``(b) Functions.--
``(1) Establishment.--
``(A) In general.--The Secretary shall establish a program
to be known as the `New Era Rural Technology Program', to
make grants available for technology development, applied
research, and training to aid in the development of an
agriculture-based renewable energy workforce.
``(B) Support.--The initiative under this section shall
support the fields of--
``(i) bioenergy;
``(ii) pulp and paper manufacturing; and
``(iii) agriculture-based renewable energy resources.
``(2) Requirements for funding.--To receive funding under
this section, an entity shall--
``(A) be a community college or advanced technological
center, located in a rural area and in existence on the date
of the enactment of this section, that participates in
agricultural or bioenergy research and applied research;
``(B) have a proven record of development and
implementation of programs to meet the needs of students,
educators, and business and industry to supply the
agriculture-based, renewable energy or pulp and paper
manufacturing fields with certified technicians, as
determined by the Secretary; and
``(C) have the ability to leverage existing partnerships
and occupational outreach and training programs for secondary
schools, 4-year institutions, and relevant nonprofit
organizations.
``(c) Grant Priority.--In providing grants under this
section, the Secretary shall give preference to eligible
entities working in partnership--
``(1) to improve information-sharing capacity; and
``(2) to maximize the ability to meet the requirements of
this section.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated to
[[Page H4563]]
carry out this section such sums as are necessary for each of
fiscal years 2008 through 2012.''.
SEC. 7138. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS.
Subtitle K of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et
seq.) (as amended by section 7137) is amended by adding at
the end the following:
``SEC. 1473F. CAPACITY BUILDING GRANTS FOR NLGCA
INSTITUTIONS.
``(a) Grant Program.--
``(1) In general.--The Secretary shall make competitive
grants to NLGCA Institutions to assist the NLGCA Institutions
in maintaining and expanding the capacity of the NLGCA
Institutions to conduct education, research, and outreach
activities relating to--
``(A) agriculture;
``(B) renewable resources; and
``(C) other similar disciplines.
``(2) Use of funds.--An NLGCA Institution that receives a
grant under paragraph (1) may use the funds made available
through the grant to maintain and expand the capacity of the
NLGCA Institution--
``(A) to successfully compete for funds from Federal grants
and other sources to carry out educational, research, and
outreach activities that address priority concerns of
national, regional, State, and local interest;
``(B) to disseminate information relating to priority
concerns to--
``(i) interested members of the agriculture, renewable
resources, and other relevant communities;
``(ii) the public; and
``(iii) any other interested entity;
``(C) to encourage members of the agriculture, renewable
resources, and other relevant communities to participate in
priority education, research, and outreach activities by
providing matching funding to leverage grant funds; and
``(D) through--
``(i) the purchase or other acquisition of equipment and
other infrastructure (not including alteration, repair,
renovation, or construction of buildings);
``(ii) the professional growth and development of the
faculty of the NLGCA Institution; and
``(iii) the development of graduate assistantships.
``(b) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section such
sums as are necessary for each of fiscal years 2008 through
2012.''.
SEC. 7139. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND
TECHNOLOGY FELLOWSHIP PROGRAM.
Subtitle K of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310 et
seq.) (as amended by section 7138) is amended by adding at
the end the following:
``SEC. 1473G. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND
TECHNOLOGY FELLOWSHIP PROGRAM.
``(a) Fellowship Program.--
``(1) In general.--The Secretary shall establish a
fellowship program, to be known as the `Borlaug International
Agricultural Science and Technology Fellowship Program,' to
provide fellowships for scientific training and study in the
United States to individuals from eligible countries (as
described in subsection (b)) who specialize in agricultural
education, research, and extension.
``(2) Programs.--The Secretary shall carry out the
fellowship program by implementing 3 programs designed to
assist individual fellowship recipients, including--
``(A) a graduate studies program in agriculture to assist
individuals who participate in graduate agricultural degree
training at a United States institution;
``(B) an individual career improvement program to assist
agricultural scientists from developing countries in
upgrading skills and understanding in agricultural science
and technology; and
``(C) a Borlaug agricultural policy executive leadership
course to assist senior agricultural policy makers from
eligible countries, with an initial focus on individuals from
sub-Saharan Africa and the independent states of the former
Soviet Union.
``(b) Eligible Countries.--An eligible country is a
developing country, as determined by the Secretary using a
gross national income per capita test selected by the
Secretary.
``(c) Purpose of Fellowships.--A fellowship provided under
this section shall--
``(1) promote food security and economic growth in eligible
countries by--
``(A) educating a new generation of agricultural
scientists;
``(B) increasing scientific knowledge and collaborative
research to improve agricultural productivity; and
``(C) extending that knowledge to users and intermediaries
in the marketplace; and
``(2) shall support--
``(A) training and collaborative research opportunities
through exchanges for entry level international agricultural
research scientists, faculty, and policymakers from eligible
countries;
``(B) collaborative research to improve agricultural
productivity;
``(C) the transfer of new science and agricultural
technologies to strengthen agricultural practice; and
``(D) the reduction of barriers to technology adoption.
``(d) Fellowship Recipients.--
``(1) Eligible candidates.--The Secretary may provide
fellowships under this section to individuals from eligible
countries who specialize or have experience in agricultural
education, research, extension, or related fields,
including--
``(A) individuals from the public and private sectors; and
``(B) private agricultural producers.
``(2) Candidate identification.--The Secretary shall use
the expertise of United States land-grant colleges and
universities and similar universities, international
organizations working in agricultural research and outreach,
and national agricultural research organizations to help
identify program candidates for fellowships under this
section from the public and private sectors of eligible
countries.
``(e) Use of Fellowships.--A fellowship provided under this
section shall be used--
``(1) to promote collaborative programs among agricultural
professionals of eligible countries, agricultural
professionals of the United States, the international
agricultural research system, and, as appropriate, United
States entities conducting research; and
``(2) to support fellowship recipients through programs
described in subsection (a)(2).
``(f) Program Implementation.--The Secretary shall provide
for the management, coordination, evaluation, and monitoring
of the Borlaug International Agricultural Science and
Technology Fellowship Program and for the individual programs
described in subsection (a)(2), except that the Secretary may
contract out to 1 or more collaborating universities the
management of 1 or more of the fellowship programs.
``(g) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section, to remain available until
expended.''.
SEC. 7140. AQUACULTURE ASSISTANCE PROGRAMS.
Section 1477 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3324) is
amended by striking ``2007'' and inserting ``2012''.
SEC. 7141. RANGELAND RESEARCH GRANTS.
Section 1483(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3336(a))
is amended by striking ``2007'' and inserting ``2012''.
SEC. 7142. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND
RESPONSE.
Section 1484(a) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3351(a))
is amended by striking ``2007'' and inserting ``2012''.
SEC. 7143. RESIDENT INSTRUCTION AND DISTANCE EDUCATION GRANTS
PROGRAM FOR INSULAR AREA INSTITUTIONS OF HIGHER
EDUCATION.
(a) Distance Education Grants for Insular Areas.--Section
1490(f) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3362(f)) is amended by
striking ``2007'' and inserting ``2012''.
(b) Resident Instruction Grants for Insular Areas.--Section
1491 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3363) is amended--
(1) by redesignating subsection (e) as subsection (c); and
(2) in subsection (c) (as so redesignated), by striking
``2007'' and inserting ``2012''.
Subtitle B--Food, Agriculture, Conservation, and Trade Act of 1990
SEC. 7201. NATIONAL GENETICS RESOURCES PROGRAM.
Section 1635(b) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5844(b)) is amended by striking
``2007'' and inserting ``2012''.
SEC. 7202. NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.
Section 1641(c) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5855(c)) is amended by striking
``1991 through 1997'' and inserting ``2008 through 2012''.
SEC. 7203. PARTNERSHIPS.
Section 1672(d) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5925(d)) is amended by striking
``may'' and inserting ``shall''.
SEC. 7204. HIGH-PRIORITY RESEARCH AND EXTENSION AREAS.
(a) In General.--Section 1672 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5925) is
amended--
(1) in subsection (e)--
(A) in paragraph (3), by striking ``and controlling
aflatoxin in the food and feed chains.'' and inserting ``,
improving, and eventually commercializing, alfatoxin controls
in corn and other affected agricultural products and
crops.'';
(B) by striking paragraphs (1), (4), (7), (8), (15), (17),
(21), (23), (26), (27), (32), (34), (41), (42), (43), and
(45);
(C) by redesignating paragraphs (2), (3), (5), (6), (9)
through (14), (16), (18) through (20), (22), (24), (25), (28)
through (31), (33), (35) through (40), and (44) as paragraphs
(1) through (29), respectively; and
(D) by adding at the end the following:
``(30) Air emissions from livestock operations.--Research
and extension grants may be made under this section for the
purpose of conducting field verification tests and developing
mitigation options for air emissions from animal feeding
operations.
``(31) Swine genome project.--Research grants may be made
under this section to conduct swine genome research,
including the mapping of the swine genome.
[[Page H4564]]
``(32) Cattle fever tick program.--Research and extension
grants may be made under this section to study cattle fever
ticks to facilitate understanding of the role of wildlife in
the persistence and spread of cattle fever ticks, to develop
advanced methods for eradication of cattle fever ticks, and
to improve management of diseases relating to cattle fever
ticks that are associated with wildlife, livestock, and human
health.
``(33) Synthetic gypsum.--Research and extension grants may
be made under this section to study the uses of synthetic
gypsum from electric power plants to remediate soil and
nutrient losses.
``(34) Cranberry research program.--Research and extension
grants may be made under this section to study new
technologies to assist cranberry growers in complying with
Federal and State environmental regulations, increase
production, develop new growing techniques, establish more
efficient growing methodologies, and educate cranberry
producers about sustainable growth practices.
``(35) Sorghum research initiative.--Research and extension
grants may be made under this section to study the use of
sorghum as a bioenergy feedstock, promote diversification in,
and the environmental benefits of sorghum production, and
promote water conservation through the use of sorghum.
``(36) Marine shrimp farming program.--Research and
extension grants may be made under this section to establish
a research program to advance and maintain a domestic shrimp
farming industry in the United States.
``(37) Turfgrass research initiative.--Research and
extension grants may be made under this section to study the
production of turfgrass (including the use of water,
fertilizer, pesticides, fossil fuels, and machinery for turf
establishment and maintenance) and environmental protection
and enhancement relating to turfgrass production.
``(38) Agricultural worker safety research initiative.--
Research and extension grants may be made under this
section--
``(A) to study and demonstrate methods to minimize exposure
of farm and ranch owners and operators, pesticide handlers,
and agricultural workers to pesticides, including research
addressing the unique concerns of farm workers resulting from
long-term exposure to pesticides; and
``(B) to develop rapid tests for on-farm use to better
inform and educate farmers, ranchers, and farm and ranch
workers regarding safe field re-entry intervals.
``(39) High plains aquifer region.--Research and extension
grants may be made under this section to carry out
interdisciplinary research relating to diminishing water
levels and increased demand for water in the High Plains
aquifer region.
``(40) Deer initiative.--Research and extension grants may
be made under this section to support collaborative research
focusing on the development of viable strategies for the
prevention, diagnosis, and treatment of infectious,
parasitic, and toxic diseases of farmed deer and the mapping
of the deer genome.
``(41) Pasture-based beef systems research initiative.--
Research and extension grants may be made under this section
to study the development of forage sequences and combinations
for cow-calf, heifer development, stocker, and finishing
systems, to deliver optimal nutritive value for efficient
production of cattle for pasture finishing, to optimize
forage systems to improve marketability of pasture-finished
beef, and to assess the effect of forage quality on
reproductive fitness.
``(42) Agricultural practices relating to climate change.--
Research and extension grants may be made under this section
for field and laboratory studies that examine the ecosystem
from gross to minute scales and for projects that explore the
relationship of agricultural practices to climate change.
``(43) Brucellosis control and eradication.--Research and
extension grants may be made under this section to conduct
research relating to the development of vaccines and vaccine
delivery systems to effectively control and eliminate
brucellosis in wildlife, and to assist with the controlling
of the spread of brucellosis from wildlife to domestic
animals.
``(44) Bighorn and domestic sheep disease mechanisms.--
Research and extension grants may be made under this section
to conduct research relating to the health status of
(including the presence of infectious diseases in) bighorn
and domestic sheep under range conditions.
``(45) Agricultural development in the american-pacific
region.--Research and extension grants may be made under this
section to support food and agricultural science at a
consortium of land-grant institutions in the American-Pacific
region.
``(46) Tropical and subtropical agricultural research.--
Research grants may be made under this section, in equal
dollar amounts to the Caribbean and Pacific Basins, to
support tropical and subtropical agricultural research,
including pest and disease research, at the land-grant
institutions in the Caribbean and Pacific regions.
``(47) Viral hemorrhagic septicemia.--Research and
extension grants may be made under this section to study--
``(A) the effects of viral hemorrhagic septicemia (referred
to in this paragraph as `VHS') on freshwater fish throughout
the natural and expanding range of VHS; and
``(B) methods for transmission and human-mediated transport
of VHS among waterbodies.
``(48) Farm and ranch safety.--Research and extension
grants may be made under this section to carry out projects
to decrease the incidence of injury and death on farms and
ranches, including--
``(A) on-site farm or ranch safety reviews;
``(B) outreach and dissemination of farm safety research
and interventions to agricultural employers, employees,
youth, farm and ranch families, seasonal workers, or other
individuals; and
``(C) agricultural safety education and training.
``(49) Women and minorities in stem fields.--Research and
extension grants may be made under this section to increase
participation by women and underrepresented minorities from
rural areas in the fields of science, technology,
engineering, and mathematics, with priority given to eligible
institutions that carry out continuing programs funded by the
Secretary.
``(50) Alfalfa and forage research program.--Research and
extension grants may be made under this section for the
purpose of studying improvements in alfalfa and forage
yields, biomass and persistence, pest pressures, the
bioenergy potential of alfalfa and other forages, and systems
to reduce losses during harvest and storage.
``(51) Food systems veterinary medicine.--Research grants
may be made under this section to address health issues that
affect food-producing animals, food safety, and the
environment, and to improve information resources,
curriculum, and clinical education of students with respect
to food animal veterinary medicine and food safety.
``(52) Biochar research.--Grants may be made under this
section for research, extension, and integrated activities
relating to the study of biochar production and use,
including considerations of agronomic and economic impacts,
synergies of coproduction with bioenergy, and the value of
soil enhancements and soil carbon sequestration.'';
(2) by redesignating subsection (h) as subsection (j);
(3) by inserting after subsection (g) the following:
``(h) Pollinator Protection.--
``(1) Research and extension.--
``(A) Grants.--Research and extension grants may be made
under this section--
``(i) to survey and collect data on bee colony production
and health;
``(ii) to investigate pollinator biology, immunology,
ecology, genomics, and bioinformatics;
``(iii) to conduct research on various factors that may be
contributing to or associated with colony collapse disorder,
and other serious threats to the health of honey bees and
other pollinators, including--
``(I) parasites and pathogens of pollinators; and
``(II) the sublethal effects of insecticides, herbicides,
and fungicides on honey bees and native and managed
pollinators;
``(iv) to develop mitigative and preventative measures to
improve native and managed pollinator health; and
``(v) to promote the health of honey bees and native
pollinators through habitat conservation and best management
practices.
``(B) Authorization of appropriations.--There is authorized
to be appropriated to carry out this paragraph $10,000,000
for each of fiscal years 2008 through 2012.
``(2) Department of agriculture capacity and
infrastructure.--
``(A) In general.--The Secretary shall, to the maximum
extent practicable, increase the capacity and infrastructure
of the Department--
``(i) to address colony collapse disorder and other long-
term threats to pollinator health, including the hiring of
additional personnel; and
``(ii) to conduct research on colony collapse disorder and
other pollinator issues at the facilities of the Department.
``(B) Authorization of appropriations.--There is authorized
to be appropriated to carry out this paragraph $7,250,000 for
each of fiscal years 2008 through 2012.
``(3) Honey bee pest and pathogen surveillance.--There is
authorized to be appropriated to conduct a nationwide honey
bee pest and pathogen surveillance program $2,750,000 for
each of fiscal years 2008 through 2012.
``(4) Annual report on response to honey bee colony
collapse disorder.--The Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate an annual report describing the progress made by the
Department of Agriculture in--
``(A) investigating the cause or causes of honey bee colony
collapse; and
``(B) finding appropriate strategies to reduce colony loss.
``(i) Regional Centers of Excellence.--
``(1) Establishment.--The Secretary shall prioritize
regional centers of excellence established for specific
agricultural commodities for the receipt of funding under
this section.
``(2) Composition.--A regional center of excellence shall
be composed of 1 or more colleges and universities (including
land-grant institutions, schools of forestry, schools of
veterinary medicine, or NLGCA Institutions (as defined in
section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)))
[[Page H4565]]
that provide financial support to the regional center of
excellence.
``(3) Criteria for regional centers of excellence.--The
criteria for consideration to be a regional center of
excellence shall include efforts--
``(A) to ensure coordination and cost-effectiveness by
reducing unnecessarily duplicative efforts regarding
research, teaching, and extension;
``(B) to leverage available resources by using public/
private partnerships among agricultural industry groups,
institutions of higher education, and the Federal Government;
``(C) to implement teaching initiatives to increase
awareness and effectively disseminate solutions to target
audiences through extension activities;
``(D) to increase the economic returns to rural communities
by identifying, attracting, and directing funds to high-
priority agricultural issues; and
``(E) to improve teaching capacity and infrastructure at
colleges and universities (including land-grant institutions,
schools of forestry, and schools of veterinary medicine).'';
and
(4) in subsection (j) (as redesignated by paragraph (2)),
by striking ``2007'' and inserting ``2012''.
(b) Conforming Amendments.--Section 1672 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
5925) is amended--
(1) in the first sentence of subsection (a), by striking
``(e), (f), and (g)'' and inserting ``(e) through (i)''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``paragraphs (1), (6),
(7), and (11)'' and inserting ``paragraphs (4), (7), (8), and
(11)(B)''; and
(B) in paragraph (2), by striking ``subsection (e)'' and
inserting ``subsections (e) through (i)''.
SEC. 7205. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION
INITIATIVE.
Section 1672A of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5925a) is amended--
(1) in subsection (b), by striking paragraph (1) and
inserting the following:
``(1) In general.--Paragraphs (4), (7), (8), and (11)(B) of
subsection (b) of the Competitive, Special, and Facilities
Research Grant Act (7 U.S.C. 450i) shall apply with respect
to the making of grants under this section.'';
(2) by striking subsection (d) and inserting the following:
``(d) Priority.--Following the completion of a peer review
process for grant proposals received under this section, the
Secretary shall give priority to those grant proposals that
involve--
``(1) the cooperation of multiple entities; and
``(2) States or regions with a high concentration of
livestock, dairy, or poultry operations.'';
(3) in subsection (e)--
(A) in paragraph (1)(B), by inserting ``and dairy and beef
cattle waste'' after ``swine waste''; and
(B) by striking paragraph (5) and inserting the following:
``(5) Alternative uses and renewable energy.--Research and
extension grants may be made under this section for the
purpose of finding innovative methods and technologies to
allow agricultural operators to make use of animal waste,
such as use as fertilizer, methane digestion, composting, and
other useful byproducts.'';
(4) by redesignating subsection (g) as subsection (f); and
(5) in subsection (f) (as so redesignated), by striking
``2007'' and inserting ``2012''.
SEC. 7206. ORGANIC AGRICULTURE RESEARCH AND EXTENSION
INITIATIVE.
(a) In General.--Section 1672B of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5925b)
(commonly known as the ``Organic Agriculture Research and
Extension Initiative'') is amended--
(1) in subsection (a)--
(A) in paragraph (5), by striking ``and'' after the
semicolon;
(B) in paragraph (6), by striking the period at the end and
inserting a semicolon; and
(C) by adding at the end the following:
``(7) examining optimal conservation and environmental
outcomes relating to organically produced agricultural
products; and
``(8) developing new and improved seed varieties that are
particularly suited for organic agriculture.''; and
(2) by adding at the end the following:
``(f) Funding.--
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall make available to carry out
this section--
``(A) $18,000,000 for fiscal year 2009; and
``(B) $20,000,000 for each of fiscal years 2010 through
2012.
``(2) Additional funding.--In addition to amounts made
available under paragraph (1), there is authorized to be
appropriated to carry out this section $25,000,000 for each
of fiscal years 2009 through 2012.''.
(b) Coordination.--In carrying out the amendment made by
this section, the Secretary shall ensure that the Division
Chief of the applicable Research, Education, and Extension
Office established under section 251 of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6971)
coordinates projects and activities under this section to
ensure, to the maximum extent practicable, that unnecessary
duplication of effort is eliminated or minimized.
SEC. 7207. AGRICULTURAL BIOENERGY FEEDSTOCK AND ENERGY
EFFICIENCY RESEARCH AND EXTENSION INITIATIVE.
Title XVI of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5801 et seq.) is amended by inserting
after section 1672B (7 U.S.C. 5925b) the following:
``SEC. 1672C. AGRICULTURAL BIOENERGY FEEDSTOCK AND ENERGY
EFFICIENCY RESEARCH AND EXTENSION INITIATIVE.
``(a) Establishment and Purpose.--There is established
within the Department of Agriculture an agricultural
bioenergy feedstock and energy efficiency research and
extension initiative (referred to in this section as the
`Initiative') for the purpose of enhancing the production of
biomass energy crops and the energy efficiency of
agricultural operations.
``(b) Competitive Research and Extension Grants
Authorized.--In carrying out this section, the Secretary
shall make competitive grants to support research and
extension activities specified in subsections (c) and (d).
``(c) Agricultural Bioenergy Feedstock Research and
Extension Areas.--
``(1) In general.--Agricultural bioenergy feedstock
research and extension activities funded under the Initiative
shall focus on improving agricultural biomass production,
biomass conversion in biorefineries, and biomass use by--
``(A) supporting on-farm research on crop species, nutrient
requirements, management practices, environmental impacts,
and economics;
``(B) supporting the development and operation of on-farm,
integrated biomass feedstock production systems;
``(C) leveraging the broad scientific capabilities of the
Department of Agriculture and other entities in--
``(i) plant genetics and breeding;
``(ii) crop production;
``(iii) soil and water science;
``(iv) use of agricultural waste; and
``(v) carbohydrate, lipid, protein, and lignin chemistry,
enzyme development, and biochemistry; and
``(D) supporting the dissemination of any of the research
conducted under this subsection that will assist in achieving
the goals of this section.
``(2) Selection criteria.--In selecting grant recipients
for projects under paragraph (1), the Secretary shall
consider--
``(A) the capabilities and experiences of the applicant,
including--
``(i) research in actual field conditions; and
``(ii) engineering and research knowledge relating to
biofuels or the production of inputs for biofuel production;
``(B) the range of species types and cropping practices
proposed for study (including species types and practices
studied using side-by-side comparisons of those types and
practices);
``(C) the need for regional diversity among feedstocks;
``(D) the importance of developing multiyear data relevant
to the production of biomass feedstock crops;
``(E) the extent to which the project involves direct
participation of agricultural producers;
``(F) the extent to which the project proposal includes a
plan or commitment to use the biomass produced as part of the
project in commercial channels; and
``(G) such other factors as the Secretary may determine.
``(d) Energy-Efficiency Research and Extension Areas.--On-
farm energy-efficiency research and extension activities
funded under the Initiative shall focus on developing and
demonstrating technologies and production practices relating
to--
``(1) improving on-farm renewable energy production;
``(2) encouraging efficient on-farm energy use;
``(3) promoting on-farm energy conservation;
``(4) making a farm or ranch energy-neutral; and
``(5) enhancing on-farm usage of advanced technologies to
promote energy efficiency.
``(e) Best Practices Database.--The Secretary shall develop
a best-practices database that includes information, to be
available to the public, on--
``(1) the production potential of a variety of biomass
crops; and
``(2) best practices for production, collection,
harvesting, storage, and transportation of biomass crops to
be used as a source of bioenergy.
``(f) Administration.--
``(1) In general.--Paragraphs (4), (7), (8), and (11)(B) of
subsection (b) of the Competitive, Special, and Facilities
Research Grant Act (7 U.S.C. 450i(b)) shall apply with
respect to making grants under this section.
``(2) Consultation and coordination.--The Secretary shall--
``(A) make the grants in consultation with the National
Agricultural Research, Extension, Education, and Economics
Advisory Board; and
``(B) coordinate projects and activities carried out under
the Initiative with projects and activities under section
9008 of the Farm Security and Rural Investment Act of 2002 to
ensure, to the maximum extent practicable, that--
``(i) unnecessary duplication of effort is eliminated or
minimized; and
``(ii) the respective strengths of the Department of
Agriculture and the Department of Energy are appropriately
used.
[[Page H4566]]
``(3) Grant priority.--The Secretary shall give priority to
grant applications that integrate research and extension
activities established under subsections (c) and (d),
respectively.
``(4) Matching funds required.--As a condition of receiving
a grant under this section, the Secretary shall require the
recipient of the grant to provide funds or in-kind support
from non-Federal sources in an amount that is at least equal
to the amount provided by the Federal Government.
``(5) Partnerships encouraged.--Following the completion of
a peer review process for grant proposals received under this
section, the Secretary may provide a priority to those grant
proposals found as a result of the peer review process--
``(A) to be scientifically meritorious; and
``(B) that involve cooperation--
``(i) among multiple entities; and
``(ii) with agricultural producers.
``(g) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $50,000,000 for
each of fiscal years 2008 through 2012.''.
SEC. 7208. FARM BUSINESS MANAGEMENT AND BENCHMARKING.
The Food, Agriculture, Conservation and Trade Act of 1990
is amended by inserting after section 1672C (as added by
section 7207) the following:
``SEC. 1672D. FARM BUSINESS MANAGEMENT.
``(a) In General.--The Secretary may make competitive
research and extension grants for the purpose of--
``(1) improving the farm management knowledge and skills of
agricultural producers; and
``(2) establishing and maintaining a national, publicly
available farm financial management database to support
improved farm management.
``(b) Selection Criteria.--In allocating funds made
available to carry out this section, the Secretary may give
priority to grants that--
``(1) demonstrate an ability to work directly with
agricultural producers;
``(2) collaborate with farm management and producer
associations;
``(3) address the farm management needs of a variety of
crops and regions of the United States; and
``(4) use and support the national farm financial
management database.
``(c) Administration.--Paragraphs (4), (7), (8), and
(11)(B) of subsection (b) of the Competitive, Special, and
Facilities Research Grant Act (7 U.S.C. 450i(b)) shall apply
with respect to the making of grants under this section.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section.''.
SEC. 7209. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.
Section 1673 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5926) is repealed.
SEC. 7210. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH
DISABILITIES.
Section 1680(c)(1) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7211. RESEARCH ON HONEY BEE DISEASES.
Section 1681 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5934) is repealed.
SEC. 7212. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.
Section 2381(e) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking
``2007'' and inserting ``2012''.
Subtitle C--Agricultural Research, Extension, and Education Reform Act
of 1998
SEC. 7301. PEER AND MERIT REVIEW.
Section 103(a) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7613(a)) is amended by
adding at the end the following:
``(3) Consideration.--Peer and merit review procedures
established under paragraphs (1) and (2) shall not take the
offer or availability of matching funds into
consideration.''.
SEC. 7302. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT
QUALITY RESEARCH.
Section 402 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7622) is repealed.
SEC. 7303. PRECISION AGRICULTURE.
Section 403 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7623) is repealed.
SEC. 7304. BIOBASED PRODUCTS.
(a) Pilot Project.--Section 404(e)(2) of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7624(e)(2)) is amended by striking ``2007'' and
inserting ``2012''.
(b) Authorization of Appropriations.--Section 404(h) of the
Agricultural Research, Extension, and Education Reform Act of
1998 (7 U.S.C. 7624(h)) is amended by striking ``2007'' and
inserting ``2012''.
SEC. 7305. THOMAS JEFFERSON INITIATIVE FOR CROP
DIVERSIFICATION.
Section 405 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7625) is repealed.
SEC. 7306. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION
COMPETITIVE GRANTS PROGRAM.
Section 406(f) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7626(f)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7307. FUSARIUM GRAMINEARUM GRANTS.
Section 408 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7628) is amended--
(1) in subsection (a), in the subsection heading, by
striking ``Grant'' and inserting ``Grants''; and
(2) in subsection (e), by striking ``2007'' and inserting
``2012''.
SEC. 7308. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.
Section 409(b) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7629(b)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7309. GRANTS FOR YOUTH ORGANIZATIONS.
Section 410 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7630) is amended by
striking subsections (b) and (c) and inserting the following:
``(b) Flexibility.--The Secretary shall provide maximum
flexibility in content delivery to each organization
receiving funds under this section so as to ensure that the
unique goals of each organization, as well as the local
community needs, are fully met.
``(c) Redistribution of Funding Within Organizations
Authorized.--Recipients of funds under this section may
redistribute all or part of the funds received to individual
councils or local chapters within the councils without
further need of approval from the Secretary.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section such
sums as are necessary for each of fiscal years 2008 through
2012.''.
SEC. 7310. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND
DEVELOPMENT FOR DEVELOPING COUNTRIES.
Section 411(c) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7631(c)) is amended by
striking ``2007'' and inserting ``2012''.
SEC. 7311. SPECIALTY CROP RESEARCH INITIATIVE.
(a) In General.--Title IV of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7621 et
seq.) is amended by adding at the end the following:
``SEC. 412. SPECIALTY CROP RESEARCH INITIATIVE.
``(a) Definitions.--In this section:
``(1) Initiative.--The term `Initiative' means the
specialty crop research and extension initiative established
by subsection (b).
``(2) Specialty crop.--The term `specialty crop' has the
meaning given that term in section 3 of the Specialty Crops
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law
108-465).
``(b) Establishment.--There is established within the
Department a specialty crop research and extension initiative
to address the critical needs of the specialty crop industry
by developing and disseminating science-based tools to
address needs of specific crops and their regions,
including--
``(1) research in plant breeding, genetics, and genomics to
improve crop characteristics, such as--
``(A) product, taste, quality, and appearance;
``(B) environmental responses and tolerances;
``(C) nutrient management, including plant nutrient uptake
efficiency;
``(D) pest and disease management, including resistance to
pests and diseases resulting in reduced application
management strategies; and
``(E) enhanced phytonutrient content;
``(2) efforts to identify and address threats from pests
and diseases, including threats to specialty crop
pollinators;
``(3) efforts to improve production efficiency,
productivity, and profitability over the long term (including
specialty crop policy and marketing);
``(4) new innovations and technology, including improved
mechanization and technologies that delay or inhibit
ripening; and
``(5) methods to prevent, detect, monitor, control, and
respond to potential food safety hazards in the production
and processing of specialty crops, including fresh produce.
``(c) Eligible Entities.--The Secretary may carry out the
Initiative through--
``(1) Federal agencies;
``(2) national laboratories;
``(3) colleges and universities;
``(4) research institutions and organizations;
``(5) private organizations or corporations;
``(6) State agricultural experiment stations;
``(7) individuals; or
``(8) groups consisting of 2 or more entities described in
paragraphs (1) through (7).
``(d) Research Projects.--In carrying out this section, the
Secretary shall award grants on a competitive basis.
``(e) Administration.--
``(1) In general.--With respect to grants awarded under
subsection (d), the Secretary shall--
``(A) seek and accept proposals for grants;
``(B) determine the relevance and merit of proposals
through a system of peer and merit review in accordance with
section 103; and
``(C) award grants on the basis of merit, quality, and
relevance.
``(2) Term.--The term of a grant under this section may not
exceed 10 years.
``(3) Matching funds required.--The Secretary shall require
the recipient of a grant under this section to provide funds
or in-kind support from non-Federal sources in an amount that
is at least equal to the amount provided by the Federal
Government.
[[Page H4567]]
``(4) Other conditions.--The Secretary may set such other
conditions on the award of a grant under this section as the
Secretary determines to be appropriate.
``(f) Priorities.--In making grants under this section, the
Secretary shall provide a higher priority to projects that--
``(1) are multistate, multi-institutional, or
multidisciplinary; and
``(2) include explicit mechanisms to communicate results to
producers and the public.
``(g) Buildings and Facilities.--Funds made available under
this section shall not be used for the construction of a new
building or facility or the acquisition, expansion,
remodeling, or alteration of an existing building or facility
(including site grading and improvement, and architect fees).
``(h) Funding.--
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall make available to carry out
this section $30,000,000 for fiscal year 2008 and $50,000,000
for each of fiscal years 2009 through 2012, from which
activities under each of paragraphs (1) through (5) of
subsection (b) shall be allocated not less than 10 percent.
``(2) Authorization of appropriations.--In addition to
funds made available under paragraph (1), there is authorized
to be appropriated to carry out this section $100,000,000 for
each of fiscal years 2008 through 2012.
``(3) Transfer.--Of the funds made available to the
Secretary under paragraph (1) for fiscal year 2008 and
authorized for use for payment of administrative expenses
under section 1469(a)(3) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3315(a)(3)), the Secretary shall transfer, upon the
date of enactment of this section, $200,000 to the Office of
Prevention, Pesticides, and Toxic Substances of the
Environmental Protection Agency for use in conducting a meta-
analysis relating to methyl bromide.
``(4) Availability.--Funds made available pursuant to this
subsection for a fiscal year shall remain available until
expended to pay for obligations incurred in that fiscal
year.''.
(b) Coordination.--In carrying out the amendment made by
this section, the Secretary shall ensure that the Division
Chief of the applicable Research, Education, and Extension
Office established under section 251 of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6971)
coordinates projects and activities under this section to
ensure, to the maximum extent practicable, that unnecessary
duplication of effort is eliminated or minimized.
SEC. 7312. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE PROGRAM.
Section 604 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7642) is amended by
adding at the end the following:
``(e) Authorization of Appropriations.--In addition to any
other funds available to carry out subsection (c), there is
authorized to be appropriated to carry out this section
$2,500,000 for each of fiscal years 2008 through 2012.''.
SEC. 7313. OFFICE OF PEST MANAGEMENT POLICY.
Section 614(f) of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended by
striking ``2007'' and inserting ``2012''.
Subtitle D--Other Laws
SEC. 7401. CRITICAL AGRICULTURAL MATERIALS ACT.
Section 16(a) of the Critical Agricultural Materials Act (7
U.S.C. 178n(a)) is amended by striking ``2007'' and inserting
``2012''.
SEC. 7402. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF
1994.
(a) Definition of 1994 Institutions.--Section 532 of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C.
301 note; Public Law 103-382) is amended by adding at the end
the following:
``(34) Ilisagvik College.''.
(b) Endowment for 1994 Institutions.--Section 533 of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C.
301 note; Public Law 103-382) is amended--
(1) in subsection (a)(3), in the matter preceding
subparagraph (A), by inserting ``this section and'' before
``sections 534,''; and
(2) in the first sentence of subsection (b), by striking
``2007'' and inserting ``2012''.
(c) Redistribution.--Section 534(a)(3) of the Equity in
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note;
Public Law 103-382) is amended--
(1) by striking ``The amounts'' and inserting the
following:
``(A) In general.--Except as provided in subparagraph (B),
the amounts''; and
(2) by adding at the end the following:
``(B) Redistribution.--Funds that would be paid to a 1994
Institution under paragraph (2) shall be withheld from that
1994 Institution and redistributed among the other 1994
Institutions if that 1994 Institution--
``(i) declines to accept funds under paragraph (2); or
``(ii) fails to meet the accreditation requirements under
section 533(a)(3).''.
(d) Institutional Capacity Building Grants.--Section 535 of
the Equity in Educational Land-Grant Status Act of 1994 (7
U.S.C. 301 note; Public Law 103-382) is amended by striking
``2007'' each place it appears and inserting ``2012''.
(e) Research Grants.--Section 536(c) of the Equity in
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note;
Public Law 103-382) is amended in the first sentence by
striking ``2007'' and inserting ``2012''.
(f) Effective Date.--The amendment made by subsection (a)
takes effect on October 1, 2008.
SEC. 7403. SMITH-LEVER ACT.
(a) Program.--Section 3(d) of the Smith-Lever Act (7 U.S.C.
343(d)) is amended in the second sentence by striking ``apply
for and receive'' and all that follows through paragraph (2)
and inserting ``compete for and receive funds directly from
the Secretary of Agriculture.''.
(b) Elimination of the Governor's Report Requirement for
Extension Activities.--Section 5 of the Smith-Lever Act (7
U.S.C. 345) is amended by striking the third sentence.
(c) Conforming Amendment.--Section 1444(a)(2) of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3221(a)(2)) is amended by
striking ``after September 30, 1995, under section 3(d) of
that Act (7 U.S.C. 343(d))'' and all that follows through the
end of the sentence and inserting ``under section 3(d) of
that Act (7 U.S.C. 343(d)).''.
SEC. 7404. HATCH ACT OF 1887.
(a) District of Columbia.--Section 3(d)(4) of the Hatch Act
of 1887 (7 U.S.C. 361c(d)(4)) is amended--
(1) in the paragraph heading, by inserting ``and the
district of columbia'' after ``areas'';
(2) in subparagraph (A)--
(A) by inserting ``and the District of Columbia'' after
``United States''; and
(B) by inserting ``and the District of Columbia'' after
``respectively,''; and
(3) in subparagraph (B), by inserting ``or the District of
Columbia'' after ``area''.
(b) Elimination of Penalty Mail Authorities.--
(1) In general.--Section 6 of the Hatch Act of 1887 (7
U.S.C. 361f) is amended in the first sentence by striking
``under penalty indicia:'' and all that follows through the
end of the sentence and inserting a period.
(2) Conforming amendments in other laws.--
(A) National agricultural research, extension, and teaching
policy act of 1977.--
(i) Section 1444(f) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3221(f))
is amended by striking ``under penalty indicia:'' and all
that follows through the end of the sentence and inserting a
period.
(ii) Section 1445(e) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222(e))
is amended by striking ``under penalty indicia:'' and all
that follows through the end of the sentence and inserting a
period.
(B) Other provisions.--Section 3202(a) of title 39, United
States Code, is amended--
(i) in paragraph (1)--
(I) in subparagraph (D), by adding ``and'' at the end;
(II) in subparagraph (E), by striking ``sections; and'' and
inserting ``sections.''; and
(III) by striking subparagraph (F);
(ii) in paragraph (2), by adding ``and'' at the end;
(iii) in paragraph (3) by striking ``thereof; and'' and
inserting ``thereof.''; and
(iv) by striking paragraph (4).
SEC. 7405. AGRICULTURAL EXPERIMENT STATION RESEARCH
FACILITIES ACT.
Section 6(a) of the Research Facilities Act (7 U.S.C.
390d(a)) is amended by striking ``2007'' and inserting
``2012''.
SEC. 7406. AGRICULTURE AND FOOD RESEARCH INITIATIVE.
(a) In General.--Subsection (b) of the Competitive,
Special, and Facilities Research Grant Act (7 U.S.C. 450i(b))
is amended to read as follows:
``(b) Agriculture and Food Research Initiative.--
``(1) Establishment.--There is established in the
Department of Agriculture an Agriculture and Food Research
Initiative under which the Secretary of Agriculture (referred
to in this subsection as `the Secretary') may make
competitive grants for fundamental and applied research,
extension, and education to address food and agricultural
sciences (as defined under section 1404 of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3103)).
``(2) Priority areas.--The competitive grants program
established under this subsection shall address the following
areas:
``(A) Plant health and production and plant products.--
Plant systems, including--
``(i) plant genome structure and function;
``(ii) molecular and cellular genetics and plant
biotechnology;
``(iii) conventional breeding, including cultivar and breed
development, selection theory, applied quantitative genetics,
breeding for improved food quality, breeding for improved
local adaptation to biotic stress and abiotic stress, and
participatory breeding;
``(iv) plant-pest interactions and biocontrol systems;
``(v) crop plant response to environmental stresses;
``(vi) unproved nutrient qualities of plant products; and
``(vii) new food and industrial uses of plant products.
``(B) Animal health and production and animal products.--
Animal systems, including--
``(i) aquaculture;
[[Page H4568]]
``(ii) cellular and molecular basis of animal reproduction,
growth, disease, and health;
``(iii) animal biotechnology;
``(iv) conventional breeding, including breed development,
selection theory, applied quantitative genetics, breeding for
improved food quality, breeding for improved local adaptation
to biotic stress and abiotic stress, and participatory
breeding;
``(v) identification of genes responsible for improved
production traits and resistance to disease;
``(vi) improved nutritional performance of animals;
``(vii) improved nutrient qualities of animal products and
uses; and
``(viii) the development of new and improved animal
husbandry and production systems that take into account
production efficiency, animal well-being, and animal systems
applicable to aquaculture.
``(C) Food safety, nutrition, and health.--Nutrition, food
safety and quality, and health, including--
``(i) microbial contaminants and pesticides residue
relating to human health;
``(ii) links between diet and health;
``(iii) bioavailability of nutrients;
``(iv) postharvest physiology and practices; and
``(v) improved processing technologies.
``(D) Renewable energy, natural resources, and
environment.--Natural resources and the environment,
including--
``(i) fundamental structures and functions of ecosystems;
``(ii) biological and physical bases of sustainable
production systems;
``(iii) minimizing soil and water losses and sustaining
surface water and ground water quality;
``(iv) global climate effects on agriculture;
``(v) forestry; and
``(vi) biological diversity.
``(E) Agriculture systems and technology.--Engineering,
products, and processes, including--
``(i) new uses and new products from traditional and
nontraditional crops, animals, byproducts, and natural
resources;
``(ii) robotics, energy efficiency, computing, and expert
systems;
``(iii) new hazard and risk assessment and mitigation
measures; and
``(iv) water quality and management.
``(F) Agriculture economics and rural communities.--
Markets, trade, and policy, including--
``(i) strategies for entering into and being competitive in
domestic and overseas markets;
``(ii) farm efficiency and profitability, including the
viability and competitiveness of small and medium-sized
dairy, livestock, crop and other commodity operations;
``(iii) new decision tools for farm and market systems;
``(iv) choices and applications of technology;
``(v) technology assessment; and
``(vi) new approaches to rural development, including rural
entrepreneurship.
``(3) Term.--The term of a competitive grant made under
this subsection may not exceed 10 years.
``(4) General administration.--In making grants under this
subsection, the Secretary shall--
``(A) seek and accept proposals for grants;
``(B) determine the relevance and merit of proposals
through a system of peer and merit review in accordance with
section 103 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7613);
``(C) award grants on the basis of merit, quality, and
relevance;
``(D) solicit and consider input from persons who conduct
or use agricultural research, extension, or education in
accordance with section 102(b) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7612(b)); and
``(E) in seeking proposals for grants under this subsection
and in performing peer review evaluations of such proposals,
seek the widest participation of qualified individuals in the
Federal Government, colleges and universities, State
agricultural experiment stations, and the private sector.
``(5) Allocation of funds.--In making grants under this
subsection, the Secretary shall allocate funds to the
Agriculture and Food Research Initiative to ensure that, of
funds allocated for research activities--
``(A) not less than 60 percent is made available to make
grants for fundamental research (as defined in subsection
(f)(1) of section 251 of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6971)), of which--
``(i) not less than 30 percent is made available to make
grants for research to be conducted by multidisciplinary
teams; and
``(ii) not more than 2 percent is used for equipment grants
under paragraph (6)(A); and
``(B) not less than 40 percent is made available to make
grants for applied research (as defined in subsection (f)(1)
of section 251 of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6971)).
``(6) Special considerations.--In making grants under this
subsection, the Secretary may assist in the development of
capabilities in the agricultural, food, and environmental
sciences by providing grants--
``(A) to an institution to allow for the improvement of the
research, development, technology transfer, and education
capacity of the institution through the acquisition of
special research equipment and the improvement of
agricultural education and teaching, except that the
Secretary shall use not less than 25 percent of the funds
made available for grants under this subparagraph to provide
fellowships to outstanding pre- and post-doctoral students
for research in the agricultural sciences;
``(B) to a single investigator or coinvestigators who are
beginning research careers and do not have an extensive
research publication record, except that, to be eligible for
a grant under this subparagraph, an individual shall be
within 5 years of the beginning of the initial career track
position of the individual;
``(C) to ensure that the faculty of small, mid-sized, and
minority-serving institutions who have not previously been
successful in obtaining competitive grants under this
subsection receive a portion of the grants; and
``(D) to improve research, extension, and education
capabilities in States (as defined in section 1404 of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103)) in which institutions
have been less successful in receiving funding under this
subsection, based on a 3-year rolling average of funding
levels.
``(7) Eligible entities.--The Secretary may make grants to
carry out research, extension, and education under this
subsection to--
``(A) State agricultural experiment stations;
``(B) colleges and universities;
``(C) university research foundations;
``(D) other research institutions and organizations;
``(E) Federal agencies;
``(F) national laboratories;
``(G) private organizations or corporations;
``(H) individuals; or
``(I) any group consisting of 2 or more of the entities
described in subparagraphs (A) through (H).
``(8) Construction prohibited.--Funds made available for
grants under this subsection shall not be used for the
construction of a new building or facility or the
acquisition, expansion, remodeling, or alteration of an
existing building or facility (including site grading and
improvement, and architect fees).
``(9) Matching funds.--
``(A) Equipment grants.--
``(i) In general.--Except as provided in clause (ii), in
the case of a grant made under paragraph (6)(A), the amount
provided under this subsection may not exceed 50 percent of
the cost of the special research equipment or other equipment
acquired using funds from the grant.
``(ii) Waiver.--The Secretary may waive all or part of the
matching requirement under clause (i) in the case of a
college, university, or research foundation maintained by a
college or university that ranks in the lowest \1/3\ of such
colleges, universities, and research foundations on the basis
of Federal research funds received, if the equipment to be
acquired using funds from the grant costs not more than
$25,000 and has multiple uses within a single research
project or is usable in more than 1 research project.
``(B) Applied research.--As a condition of making a grant
under paragraph (5)(B), the Secretary shall require the
funding of the grant to be matched with equal matching funds
from a non-Federal source if the grant is for applied
research that is--
``(i) commodity-specific; and
``(ii) not of national scope.
``(10) Program administration.--To the maximum extent
practicable, the Director of the National Institute of Food
and Agriculture, in coordination with the Under Secretary for
Research, Education, and Economics, shall allocate grants
under this subsection to high-priority research, taking into
consideration, when available, the determinations made by the
National Agricultural Research, Extension, Education, and
Economics Advisory Board (as established under section 1408
of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3123)).
``(11) Authorization of appropriations.--
``(A) In general.--There is authorized to be appropriated
to carry out this subsection $700,000,000 for each of fiscal
years 2008 through 2012, of which--
``(i) not less than 30 percent shall be made available for
integrated research pursuant to section 406 of the
Agricultural Research, Extension, and Education Reform Act of
1998 (7 U.S.C. 7626); and
``(ii) not more than 4 percent may be retained by the
Secretary to pay administrative costs incurred by the
Secretary in carrying out this subsection.
``(B) Availability.--Funds made available under this
paragraph shall--
``(i) be available for obligation for a 2-year period
beginning on October 1 of the fiscal year for which the funds
are first made available; and
``(ii) remain available until expended to pay for
obligations incurred during that 2-year period.''.
(b) Repeals.--
(1) Section 401 of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C. 7621) is repealed.
(2) Subsection (d) of the Competitive, Special, and
Facilities Research Grant Act (7 U.S.C. 450i(d)) is repealed.
(c) Effect on Current Solicitations.--The amendments made
by this section shall not apply to any solicitation for grant
applications issued by the Cooperative State Research,
Education, and Extension Service before the date of enactment
of this Act.
(d) Conforming Amendments.--
[[Page H4569]]
(1) Section 1473 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319) is
amended in the first sentence by striking ``and subsection
(d)''.
(2) Section 1671(d) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5924(d) is amended by
striking ``Paragraphs (1), (6), (7), and (11)'' and inserting
``Paragraphs (4), (7), (8), and (11)(B)''.
(3) Section 1672B(b) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5925b(b)) is
amended by striking ``Paragraphs (1), (6), (7), and (11)''
and inserting ``Paragraphs (4), (7), (8), and (11)(B)''.
SEC. 7407. AGRICULTURAL RISK PROTECTION ACT OF 2000.
Section 221 of the Agricultural Risk Protection Act of 2000
(7 U.S.C. 6711(g)) is amended by striking subsection (g) and
inserting the following:
``(g) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $15,000,000 for
each of fiscal years 2007 through 2012.''.
SEC. 7408. EXCHANGE OR SALE AUTHORITY.
Title III of the Department of Agriculture Reorganization
Act of 1994 (Public Law 103-354; 108 Stat. 3238) is amended
by adding at the end the following:
``SEC. 307. EXCHANGE OR SALE AUTHORITY.
``(a) Definition of Qualified Item of Personal Property.--
In this section, the term `qualified item of personal
property' means--
``(1) an animal;
``(2) an animal product;
``(3) a plant; or
``(4) a plant product.
``(b) General Authority.--Except as provided in subsection
(c), notwithstanding chapter 5 of subtitle I of title 40,
United States Code, the Secretary, acting through the Under
Secretary for Research, Education, and Economics, in managing
personal property for the purpose of carrying out the
research functions of the Department, may exchange, sell, or
otherwise dispose of any qualified item of personal property,
including by way of public auction, and may retain and apply
the sale or other proceeds, without further appropriation and
without fiscal year limitation, in whole or in partial
payment--
``(1) to acquire any qualified item of personal property;
or
``(2) to offset costs related to the maintenance, care, or
feeding of any qualified item of personal property.
``(c) Exception.--Subsection (b) does not apply to the free
dissemination of new varieties of seeds and germplasm in
accordance with section 520 of the Revised Statutes (commonly
known as the `Department of Agriculture Organic Act') (7
U.S.C. 2201).''.
SEC. 7409. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.
Title III of the Department of Agriculture Reorganization
Act of 1994 (Public Law 103-354; 108 Stat. 3238) (as amended
by section 7408) is amended by adding at the end the
following:
``SEC. 308. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM.
``(a) Establishment.--To enhance the use of real property
administered by agencies of the Department, the Secretary may
establish a pilot program, in accordance with this section,
at the Beltsville Agricultural Research Center of the
Agricultural Research Service and the National Agricultural
Library to lease nonexcess property of the Center or the
Library to any individual or entity, including agencies or
instrumentalities of State or local governments.
``(b) Requirements.--
``(1) In general.--Notwithstanding chapter 5 of subtitle I
of title 40, United States Code, the Secretary may lease real
property at the Beltsville Agricultural Research Center or
the National Agricultural Library in accordance with such
terms and conditions as the Secretary may prescribe, if the
Secretary determines that the lease--
``(A) is consistent with, and will not adversely affect,
the mission of the Department agency administering the
property;
``(B) will enhance the use of the property;
``(C) will not permit any portion of Department agency
property or any facility of the Department to be used for the
public retail or wholesale sale of merchandise or residential
development;
``(D) will not permit the construction or modification of
facilities financed by non-Federal sources to be used by an
agency, except for incidental use; and
``(E) will not include any property or facility required
for any Department agency purpose without prior consideration
of the needs of the agency.
``(2) Term.--The term of a lease under this section shall
not exceed 30 years.
``(3) Consideration.--
``(A) In general.--Consideration provided for a lease under
this section shall be--
``(i) in an amount equal to fair market value, as
determined by the Secretary; and
``(ii) in the form of cash.
``(B) Use of funds.--
``(i) In general.--Consideration provided for a lease under
this section shall be--
``(I) deposited in a capital asset account to be
established by the Secretary; and
``(II) available until expended, without further
appropriation, for maintenance, capital revitalization, and
improvements of the Department properties and facilities at
the Beltsville Agricultural Research Center and National
Agricultural Library.
``(ii) Budgetary treatment.--For purposes of the budget,
the amounts described in clause (i) shall not be treated as a
receipt of any Department agency or any other agency leasing
property under this section.
``(4) Costs.--The lessee shall cover all costs associated
with a lease under this section, including the cost of--
``(A) the project to be carried out on property or at a
facility covered by the lease;
``(B) provision and administration of the lease;
``(C) construction of any needed facilities;
``(D) provision of applicable utilities; and
``(E) any other facility cost normally associated with the
operation of a leased facility.
``(5) Prohibition of use of appropriations.--The Secretary
shall not use any funds made available to the Secretary in an
appropriations Act for the construction or operating costs of
any space covered by a lease under this section.
``(6) Termination of authority.--This section and the
authority provided by this section terminate--
``(A) on the date that is 5 years after the date of
enactment of this section; or
``(B) with respect to any particular leased property, on
the date of termination of the lease.
``(c) Effect of Other Laws.--
``(1) Utilization.--Property that is leased pursuant to
this section shall not be considered to be unutilized or
underutilized for purposes of section 501 of the Stewart B.
McKinney Homeless Assistance Act (42 U.S.C. 11411).
``(2) Disposal.--Property at the Beltsville Agricultural
Research Center or the National Agricultural Library that is
leased pursuant to this section shall not be considered to be
disposed of by sale, lease, rental, excessing, or surplusing
for purposes of section 523 of Public Law 100-202 (101 Stat.
1329-417).
``(d) Administration.--
``(1) In general.--Not later than 90 days after the date of
enactment of this section, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report that describes detailed management objectives
and performance measurements by which the Secretary intends
to evaluate the success of the program under this section.
``(2) Reports.--Not later than 1, 3, and 5 years after the
date of enactment of this section, the Secretary shall submit
to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report describing the
implementation of the program under this section, including--
``(A) a copy of each lease entered into pursuant to this
section; and
``(B) an assessment by the Secretary of the success of the
program using the management objectives and performance
measurements developed by the Secretary.''.
SEC. 7410. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.
(a) Grants.--Section 7405(c) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 3319f(c)) is amended--
(1) by striking paragraph (3) and inserting the following:
``(3) Maximum term and size of grant.--
``(A) In general.--A grant under this subsection shall--
``(i) have a term that is not more than 3 years; and
``(ii) be in an amount that is not more than $250,000 for
each year.
``(B) Consecutive grants.--An eligible recipient may
receive consecutive grants under this subsection.'';
(2) by redesignating paragraphs (5) through (7) as
paragraphs (8) through (10), respectively;
(3) by inserting after paragraph (4) the following:
``(5) Evaluation criteria.--In making grants under this
subsection, the Secretary shall evaluate--
``(A) relevancy;
``(B) technical merit;
``(C) achievability;
``(D) the expertise and track record of 1 or more
applicants;
``(E) the adequacy of plans for the participatory
evaluation process, outcome-based reporting, and the
communication of findings and results beyond the immediate
target audience; and
``(F) other appropriate factors, as determined by the
Secretary.
``(6) Regional balance.--In making grants under this
subsection, the Secretary shall, to the maximum extent
practicable, ensure geographical diversity.
``(7) Priority.--In making grants under this subsection,
the Secretary shall give priority to partnerships and
collaborations that are led by or include nongovernmental and
community-based organizations with expertise in new
agricultural producer training and outreach.''.
(b) Funding.--Section 7405 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 3319f) is amended by
striking subsection (h) and inserting the following:
``(h) Funding.--
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall make available to carry out
this section--
``(A) $18,000,000 for fiscal year 2009; and
``(B) $19,000,000 for each of fiscal years 2010 through
2012.
``(2) Authorization of appropriations.--In addition to
funds provided under paragraph (1), there is authorized to be
appropriated to
[[Page H4570]]
carry out this section $30,000,000 for each of fiscal years
2008 through 2012.''.
SEC. 7411. PUBLIC EDUCATION REGARDING USE OF BIOTECHNOLOGY IN
PRODUCING FOOD FOR HUMAN CONSUMPTION.
Section 10802 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 5921a) is repealed.
SEC. 7412. MCINTIRE-STENNIS COOPERATIVE FORESTRY ACT.
(a) In General.--Section 2 of Public Law 87-788 (commonly
known as the ``McIntire-Stennis Cooperative Forestry Act'')
(16 U.S.C. 582a-1) is amended by inserting ``and 1890
Institutions (as defined in section 2 of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7601)),'' before ``and (b)''.
(b) Effective Date.--The amendment made by subsection (a)
takes effect on October 1, 2008.
SEC. 7413. RENEWABLE RESOURCES EXTENSION ACT OF 1978.
(a) Authorization of Appropriations.--Section 6 of the
Renewable Resources Extension Act of 1978 (16 U.S.C. 1675) is
amended in the first sentence by striking ``2007'' and
inserting ``2012''.
(b) Termination Date.--Section 8 of the Renewable Resources
Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95-
306) is amended by striking ``2007'' and inserting ``2012''.
SEC. 7414. NATIONAL AQUACULTURE ACT OF 1980.
Section 10 of the National Aquaculture Act of 1980 (16
U.S.C. 2809) is amended by striking ``2007'' each place it
appears and inserting ``2012''.
SEC. 7415. CONSTRUCTION OF CHINESE GARDEN AT THE NATIONAL
ARBORETUM.
The Act of March 4, 1927 (20 U.S.C. 191 et seq.), is
amended by adding at the end the following:
``SEC. 7. CONSTRUCTION OF CHINESE GARDEN AT THE NATIONAL
ARBORETUM.
``A Chinese Garden may be constructed at the National
Arboretum established under this Act with--
``(1) funds accepted under section 5;
``(2) authorities provided to the Secretary of Agriculture
under section 6; and
``(3) appropriations provided for this purpose.''.
SEC. 7416. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND
TEACHING POLICY ACT AMENDMENTS OF 1985.
Section 1431 of the National Agricultural Research,
Extension, and Teaching Policy Act Amendments of 1985 (Public
Law 99-198; 99 Stat. 1556) is amended by striking ``2007''
and inserting ``2012''.
SEC. 7417. ELIGIBILITY OF UNIVERSITY OF THE DISTRICT OF
COLUMBIA FOR CERTAIN LAND-GRANT UNIVERSITY
ASSISTANCE.
(a) In General.--Section 208 of the District of Columbia
Public Postsecondary Education Reorganization Act (Public Law
93-471; 88 Stat. 1428) is amended--
(1) in subsection (b)(2), by striking ``, except'' and all
that follows through the period and inserting a period; and
(2) in subsection (c)--
(A) by striking ``section 3'' each place it appears and
inserting ``section 3(c)''; and
(B) by striking ``Such sums may be used to pay'' and all
that follows through ``work.''.
(b) Effective Date.--The amendments made by this section
take effect on October 1, 2008.
Subtitle E--Miscellaneous
PART I--GENERAL PROVISIONS
SEC. 7501. DEFINITIONS.
Except as otherwise provided in this subtitle, in this
subtitle:
(1) Capacity and infrastructure program.--The term
``capacity and infrastructure program'' has the meaning given
the term in subsection (f)(1) of section 251 of the
Department of Agriculture Reorganization Act of 1994 (7
U.S.C. 6971) (as added by section 7511(a)(4)).
(2) Capacity and infrastructure program critical base
funding.--The term ``capacity and infrastructure program
critical base funding'' means the aggregate amount of Federal
funds made available for capacity and infrastructure programs
for fiscal year 2006, as appropriate.
(3) Competitive program.--The term ``competitive program''
has the meaning given the term in subsection (f)(1) of
section 251 of the Department of Agriculture Reorganization
Act of 1994 (7 U.S.C. 6971) (as added by section 7511(a)(4)).
(4) Competitive program critical base funding.--The term
``competitive program critical base funding'' means the
aggregate amount of Federal funds made available for
competitive programs for fiscal year 2006, as appropriate.
(5) Hispanic-serving agricultural colleges and
universities.--The term ``Hispanic-serving agricultural
colleges and universities'' has the meaning given the term in
section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103).
(6) NLGCA institution.--The term ``NLGCA Institution'' has
the meaning given the term in section 1404 of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3103).
(7) 1862 institution; 1890 institution; 1994 institution.--
The terms ``1862 Institution'', ``1890 Institution'', and
``1994 Institution'' have the meanings given the terms in
section 2 of the Agricultural Research, Extension, and
Education Reform Act of 1998 (7 U.S.C. 7601).
SEC. 7502. GRAZINGLANDS RESEARCH LABORATORY.
Except as otherwise specifically authorized by law and
notwithstanding any other provision of law, the Federal land
and facilities at El Reno, Oklahoma, administered by the
Secretary (as of the date of enactment of this Act) as the
Grazinglands Research Laboratory, shall not at any time, in
whole or in part, be declared to be excess or surplus Federal
property under chapter 5 of subtitle I of title 40, United
States Code, or otherwise be conveyed or transferred in whole
or in part, for the 5-year period beginning on the date of
enactment of this Act.
SEC. 7503. FORT RENO SCIENCE PARK RESEARCH FACILITY.
The Secretary may lease land to the University of Oklahoma
at the Grazinglands Research Laboratory at El Reno, Oklahoma,
on such terms and conditions as the University and the
Secretary may agree in furtherance of cooperative research
and existing easement arrangements.
SEC. 7504. ROADMAP.
(a) In General.--Not later than 90 days after the date of
enactment of this Act, the Secretary, acting through the
Under Secretary of Research, Education, and Economics
(referred to in this section as the ``Under Secretary''),
shall commence preparation of a roadmap for agricultural
research, education, and extension that--
(1) identifies current trends and constraints;
(2) identifies major opportunities and gaps that no single
entity within the Department of Agriculture would be able to
address individually;
(3) involves--
(A) interested parties from the Federal Government and
nongovernmental entities; and
(B) the National Agricultural Research, Extension,
Education, and Economics Advisory Board established under
section 1408 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123);
(4) incorporates roadmaps for agricultural research,
education, and extension made publicly available by other
Federal entities, agencies, or offices; and
(5) describes recommended funding levels for areas of
agricultural research, education, and extension, including--
(A) competitive programs;
(B) capacity and infrastructure programs, with attention to
the future growth needs of--
(i) small 1862 Institutions, 1890 Institutions, and 1994
Institutions;
(ii) Hispanic-serving agricultural colleges and
universities;
(iii) NLGCA Institutions; and
(iv) colleges of veterinary medicine; and
(C) intramural programs at agencies within the research,
education, and economics mission area; and
(6) describes how organizational changes enacted by this
Act have impacted agricultural research, extension, and
education across the Department of Agriculture, including
minimization of unnecessary programmatic and administrative
duplication.
(b) Reviewability.--The roadmap described in this section
shall not be subject to review by any officer or employee of
the Federal Government other than the Secretary (or a
designee of the Secretary).
(c) Roadmap Implementation and Report.--Not later than 1
year after the date on which the Secretary commences
preparation of the roadmap under this section, the Secretary
shall--
(1) implement and use the roadmap to set the research,
education, and extension agenda of the Department of
Agriculture; and
(2) make the roadmap available to the public.
SEC. 7505. REVIEW OF PLAN OF WORK REQUIREMENTS.
(a) Review.--The Secretary shall work with university
partners in extension and research to review and identify
measures to streamline the submission, reporting under, and
implementation of plan of work requirements, including those
requirements under--
(1) sections 1444(d) and 1445(c) of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3221(d) and 3222(c), respectively);
(2) section 7 of the Hatch Act of 1887 (7 U.S.C. 361g); and
(3) section 4 of the Smith-Lever Act (7 U.S.C. 344).
(b) Consultation.--In carrying out the review and
formulating and compiling the recommendations, the Secretary
shall consult with the land-grant institutions.
SEC. 7506. BUDGET SUBMISSION AND FUNDING.
(a) Definition of Competitive Programs.--In this section,
the term ``competitive programs'' includes only competitive
programs for which annual appropriations are requested in the
annual budget submission of the President.
(b) Budget Request.--The President shall submit to
Congress, together with the annual budget submission of the
President, a single budget line item reflecting the total
amount requested by the President for funding for research,
education, and extension activities of the Research,
Education, and Economics mission area of the Department for
that fiscal year and for the preceding 5 fiscal years.
(c) Capacity and Infrastructure Program Request.--Of the
funds requested for capacity and infrastructure programs in
excess of the capacity and infrastructure program critical
base funding level, budgetary
[[Page H4571]]
emphasis should be placed on enhancing funding for--
(1) 1890 Institutions;
(2) 1994 Institutions;
(3) NLGCA Institutions;
(4) Hispanic-serving agricultural colleges and
universities; and
(5) small 1862 Institutions.
(d) Competitive Program Request.--Of the funds requested
for competitive programs in excess of the competitive program
critical base funding level, budgetary emphasis should be
placed on--
(1) enhancing funding for emerging problems; and
(2) finding solutions for those problems.
PART II--RESEARCH, EDUCATION, AND ECONOMICS
SEC. 7511. RESEARCH, EDUCATION, AND ECONOMICS.
(a) In General.--Section 251 of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6971) is
amended--
(1) in subsection (a), by inserting ``(referred to in this
section as the `Under Secretary')'' before the period at the
end;
(2) by striking subsections (b) through (d);
(3) by redesignating subsection (e) as subsection (g); and
(4) by inserting after subsection (a) the following:
``(b) Confirmation Required.--The Under Secretary shall be
appointed by the President, by and with the advice and
consent of the Senate, from among distinguished scientists
with specialized training or significant experience in
agricultural research, education, and economics.
``(c) Chief Scientist.--The Under Secretary shall--
``(1) hold the title of Chief Scientist of the Department;
and
``(2) be responsible for the coordination of the research,
education, and extension activities of the Department.
``(d) Functions of Under Secretary.--
``(1) Principal function.--The Secretary shall delegate to
the Under Secretary those functions and duties under the
jurisdiction of the Department that relate to research,
education, and economics.
``(2) Specific functions and duties.--The Under Secretary
shall--
``(A) identify, address, and prioritize current and
emerging agricultural research, education, and extension
needs (including funding);
``(B) ensure that agricultural research, education, and
extension programs are effectively coordinated and
integrated--
``(i) across disciplines, agencies, and institutions; and
``(ii) among applicable participants, grantees, and
beneficiaries;
``(C) promote the collaborative use of all agricultural
research, education, and extension resources from the local,
State, tribal, regional, national, and international levels
to address priority needs; and
``(D) foster communication among agricultural research,
education, and extension beneficiaries, including the public,
to ensure the delivery of agricultural research, education,
and extension knowledge.
``(3) Additional functions.--The Under Secretary shall
perform such other functions and duties as may be required by
law or prescribed by the Secretary.
``(e) Research, Education, and Extension Office.--
``(1) Establishment.--The Under Secretary shall organize
within the office of the Under Secretary 6 Divisions, to be
known collectively as the `Research, Education, and Extension
Office', which shall coordinate the research programs and
activities of the Department.
``(2) Division designations.--The Divisions within the
Research, Education, and Extension Office shall be as
follows:
``(A) Renewable energy, natural resources, and environment.
``(B) Food safety, nutrition, and health.
``(C) Plant health and production and plant products.
``(D) Animal health and production and animal products.
``(E) Agricultural systems and technology.
``(F) Agricultural economics and rural communities.
``(3) Division chiefs.--
``(A) Selection.--The Under Secretary shall select a
Division Chief for each Division using available personnel
authority under title 5, United States Code, including--
``(i) by term, temporary, or other appointment, without
regard to--
``(I) the provisions of title 5, United States Code,
governing appointments in the competitive service;
``(II) the provisions of subchapter I of chapter 35 of
title 5, United States Code, relating to retention
preference; and
``(III) the provisions of chapter 51 and subchapter III of
chapter 53 of title 5, United States Code, relating to
classification and General Schedule pay rates;
``(ii) by detail, notwithstanding any Act making
appropriations for the Department of Agriculture, whether
enacted before, on, or after the date of enactment of this
paragraph, requiring reimbursement for those details unless
the appropriation Act specifically refers to this subsection
and specifically includes these details;
``(iii) by reassignment or transfer from any other civil
service position; and
``(iv) by an assignment under subchapter VI of chapter 33
of title 5, United States Code.
``(B) Selection guidelines.--To the maximum extent
practicable, the Under Secretary shall select Division Chiefs
under subparagraph (A) in a manner that--
``(i) promotes leadership and professional development;
``(ii) enables personnel to interact with other agencies of
the Department; and
``(iii) maximizes the ability of the Under Secretary to
allow for rotations of Department personnel into the position
of Division Chief.
``(C) Term of service.--Notwithstanding title 5, United
States Code, the maximum length of service for an individual
selected as a Division Chief under subparagraph (A) shall not
exceed 4 years.
``(D) Qualifications.--To be eligible for selection as a
Division Chief, an individual shall have--
``(i) conducted exemplary research, education, or extension
in the field of agriculture or forestry; and
``(ii) earned an advanced degree at an institution of
higher education (as defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001)).
``(E) Duties of division chiefs.--Except as otherwise
provided in this Act, each Division Chief shall--
``(i) assist the Under Secretary in identifying and
addressing emerging agricultural research, education, and
extension needs;
``(ii) assist the Under Secretary in identifying and
prioritizing Department-wide agricultural research,
education, and extension needs, including funding;
``(iii) assess the strategic workforce needs of the
research, education, and extension functions of the
Department, and develop strategic workforce plans to ensure
that existing and future workforce needs are met;
``(iv) communicate with research, education, and extension
beneficiaries, including the public, and representatives of
the research, education, and extension system, including the
National Agricultural Research, Extension, Education, and
Economics Advisory Board, to promote the benefits of
agricultural research, education, and extension;
``(v) assist the Under Secretary in preparing and
implementing the roadmap for agricultural research,
education, and extension, as described in section 7504 of the
Food, Conservation, and Energy Act of 2008; and
``(vi) perform such other duties as the Under Secretary may
determine.
``(4) General administration.--
``(A) Funding.--Notwithstanding any Act making
appropriations for the Department of Agriculture, whether
enacted before, on, or after the date of enactment of this
paragraph unless the appropriation Act specifically refers to
this subsection and specifically includes the administration
of funds under this section, the Secretary may transfer funds
made available to an agency in the research, education, and
economics mission area to fund the costs of Division
personnel.
``(B) Limitation.--To the maximum extent practicable--
``(i) the Under Secretary shall minimize the number of
full-time equivalent positions in the Divisions; and
``(ii) at no time shall the aggregate number of staff for
all Divisions exceed 30 full-time equivalent positions.
``(C) Rotation of personnel.--To the maximum extent
practicable, and using the authority described in paragraph
(3)(A), the Under Secretary shall rotate personnel among the
Divisions, and between the Divisions and agencies of the
Department, in a manner that--
``(i) promotes leadership and professional development; and
``(ii) enables personnel to interact with other agencies of
the Department.
``(5) Organization.--The Under Secretary shall integrate
leadership functions of the national program staff of the
research agencies into the Research, Education and Extension
Office in such form as is required to ensure that
administrative duplication does not occur.
``(f) National Institute of Food and Agriculture.--
``(1) Definitions.--In this subsection:
``(A) Advisory board.--The term `Advisory Board' means the
National Agricultural Research, Extension, Education, and
Economics Advisory Board established under section 1408 of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3123).
``(B) Applied research.--The term `applied research' means
research that includes expansion of the findings of
fundamental research to uncover practical ways in which new
knowledge can be advanced to benefit individuals and society.
``(C) Capacity and infrastructure program.--The term
`capacity and infrastructure program' means each of the
following agricultural research, extension, education, and
related programs for which the Secretary has administrative
or other authority as of the day before the date of enactment
of the Food, Conservation, and Energy Act of 2008:
``(i) Each program providing funding to any of the 1994
Institutions under sections 533, 534(a), and 535 of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C.
301 note; Public Law 103-382).
``(ii) The program established under section 536 of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C.
301 note; Public Law 103-382) providing research grants for
1994 Institutions.
``(iii) Each program established under subsections (b) and
(c) of section 3 of the Smith-Lever Act (7 U.S.C. 343).
[[Page H4572]]
``(iv) Each program established under the Hatch Act of 1887
(7 U.S.C. 361a et seq.).
``(v) Each program established under section 1417(b) of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3152(b)).
``(vi) The animal health and disease research program
established under subtitle E of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3191 et seq.).
``(vii) Each extension program available to 1890
Institutions established under section 1444 of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3221).
``(viii) The program established under section 1445 of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3222).
``(ix) The program providing grants to upgrade agricultural
and food sciences facilities at 1890 Institutions established
under section 1447 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222b).
``(x) The program providing distance education grants for
insular areas established under section 1490 of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3362).
``(xi) The program providing resident instruction grants
for insular areas established under section 1491 of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3363).
``(xii) Each research and development and related program
established under Public Law 87-788 (commonly known as the
`McIntire-Stennis Cooperative Forestry Act') (16 U.S.C. 582a
et seq.).
``(xiii) Each program established under the Renewable
Resources Extension Act of 1978 (16 U.S.C. 1671 et seq.).
``(xiv) Each program providing funding to Hispanic-serving
agricultural colleges and universities under section 1456 of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977.
``(xv) The program providing capacity grants to NLGCA
Institutions under section 1473F of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977.
``(xvi) Other programs that are capacity and infrastructure
programs, as determined by the Secretary.
``(D) Competitive program.--The term `competitive program'
means each of the following agricultural research, extension,
education, and related programs for which the Secretary has
administrative or other authority as of the day before the
date of enactment of the Food, Conservation, and Energy Act
of 2008:
``(i) The Agriculture and Food Research Initiative
established under section 2(b) of the Competitive, Special,
and Facilities Research Grant Act (7 U.S.C. 450i(b)).
``(ii) The program providing competitive grants for risk
management education established under section 524(a)(3) of
the Federal Crop Insurance Act (7 U.S.C. 1524(a)(3)).
``(iii) The program providing community food project
competitive grants established under section 25 of the Food
and Nutrition Act of 2008 (7 U.S.C. 2034).
``(iv) The program providing grants for beginning farmer
and rancher development established under section 7405 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C.
3319f).
``(v) The program providing grants under section 1417(j) of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3152(j)).
``(vi) The program providing grants for Hispanic-serving
institutions established under section 1455 of the National
Agricultural Research, Extension, and Teaching Policy Act of
1977 (7 U.S.C. 3241).
``(vii) The program providing competitive grants for
international agricultural science and education programs
under section 1459A of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3292b).
``(viii) The research and extension projects carried out
under section 1621 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5811).
``(ix) The organic agriculture research and extension
initiative established under section 1672B of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
5925b).
``(x) The specialty crop research initiative under section
412 of the Agricultural Research, Extension, and Education
Reform Act of 1998.
``(xi) The administration and management of the
Agricultural Bioenergy Feedstock and Energy Efficiency
Research and Extension Initiative carried out under section
1672C of the Food, Agriculture, Conservation, and Trade Act
of 1990.
``(xii) The research, extension, and education programs
authorized by section 407 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 7627)
relating to the competitiveness, viability and sustainability
of small- and medium-sized dairy, livestock, and poultry
operations.
``(xiii) Other programs that are competitive programs, as
determined by the Secretary.
``(E) Director.--The term `Director' means the Director of
the Institute.
``(F) Fundamental research.--The term `fundamental
research' means research that--
``(i) increases knowledge or understanding of the
fundamental aspects of phenomena and has the potential for
broad application; and
``(ii) has an effect on agriculture, food, nutrition, or
the environment.
``(G) Institute.--The term `Institute' means the National
Institute of Food and Agriculture established by paragraph
(2)(A).
``(2) Establishment of national institute of food and
agriculture.--
``(A) Establishment.--The Secretary shall establish within
the Department an agency to be known as the `National
Institute of Food and Agriculture'.
``(B) Transfer of authorities.--The Secretary shall
transfer to the Institute, effective not later than October
1, 2009, the authorities (including all budget authorities,
available appropriations, and personnel), duties,
obligations, and related legal and administrative functions
prescribed by law or otherwise granted to the Secretary, the
Department, or any other agency or official of the Department
under--
``(i) the capacity and infrastructure programs;
``(ii) the competitive programs;
``(iii) the research, education, economic, cooperative
State research programs, cooperative extension and education
programs, international programs, and other functions and
authorities delegated by the Under Secretary to the
Administrator of the Cooperative State Research, Education,
and Extension Service pursuant to section 2.66 of title 7,
Code of Federal Regulations (or successor regulations); and
``(iv) any and all other authorities administered by the
Administrator of the Cooperative State Research, Education,
and Extension Service.
``(3) Director.--
``(A) In general.--The Institute shall be headed by a
Director, who shall be an individual who is--
``(i) a distinguished scientist; and
``(ii) appointed by the President.
``(B) Supervision.--The Director shall report directly to
the Secretary, or the designee of the Secretary.
``(C) Functions of the director.--The Director shall--
``(i) serve for a 6-year term, subject to reappointment for
an additional 6-year term;
``(ii) periodically report to the Secretary, or the
designee of the Secretary, with respect to activities carried
out by the Institute; and
``(iii) consult regularly with the Secretary, or the
designee of the Secretary, to ensure, to the maximum extent
practicable, that--
``(I) research of the Institute is relevant to agriculture
in the United States and otherwise serves the national
interest; and
``(II) the research of the Institute supplements and
enhances, and does not supplant, research conducted or funded
by other Federal agencies.
``(D) Compensation.--The Director shall receive basic pay
at a rate not to exceed the maximum amount of compensation
payable to a member of the Senior Executive Service under
subsection (b) of section 5382 of title 5, United States
Code, except that the certification requirement in that
subsection shall not apply to the compensation of the
Director.
``(E) Authority and responsibilities of director.--Except
as otherwise specifically provided in this subsection, the
Director shall--
``(i) exercise all of the authority provided to the
Institute by this subsection;
``(ii) formulate and administer programs in accordance with
policies adopted by the Institute, in coordination with the
Under Secretary;
``(iii) establish offices within the Institute;
``(iv) establish procedures for the provision and
administration of grants by the Institute; and
``(v) consult regularly with the Advisory Board.
``(4) Regulations.--The Institute shall have such authority
as is necessary to carry out this subsection, including the
authority to promulgate such regulations as the Institute
considers to be necessary for governance of operations,
organization, and personnel.
``(5) Administration.--
``(A) In general.--The Director shall organize offices and
functions within the Institute to administer fundamental and
applied research and extension and education programs.
``(B) Research priorities.--The Director shall ensure the
research priorities established by the Under Secretary
through the Research, Education and Extension Office are
carried out by the offices and functions of the Institute,
where applicable.
``(C) Fundamental and applied research.--The Director
shall--
``(i) determine an appropriate balance between fundamental
and applied research programs and functions to ensure future
research needs are met; and
``(ii) designate staff, as appropriate, to assist in
carrying out this subparagraph.
``(D) Competitively funded awards.--The Director shall--
``(i) promote the use and growth of grants awarded through
a competitive process; and
``(ii) designate staff, as appropriate, to assist in
carrying out this subparagraph.
``(E) Coordination.--The Director shall ensure that the
offices and functions established under subparagraph (A) are
effectively coordinated for maximum efficiency.
[[Page H4573]]
``(6) Funding.--
``(A) In general.--In addition to funds otherwise
appropriated to carry out each program administered by the
Institute, there are authorized to be appropriated such sums
as are necessary to carry out this subsection for each fiscal
year.
``(B) Allocation.--Funding made available under
subparagraph (A) shall be allocated according to
recommendations contained in the roadmap described in section
7504 of the Food, Conservation, and Energy Act of 2008.''.
(b) Functions.--Section 296(b) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is
amended--
(1) in paragraph (4), by striking ``or'' at the end;
(2) in paragraph (5), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(6) the authority of the Secretary to establish in the
Department, under section 251--
``(A) the position of Under Secretary of Agriculture for
Research, Education, and Economics;
``(B) the Research, Education, and Extension Office; and
``(C) the National Institute of Food and Agriculture.''.
(c) Conforming Amendments.--The following conforming
amendments shall take effect on October 1, 2009:
(1) Section 522(d)(2) of the Federal Crop Insurance Act (7
U.S.C. 1522(d)(2)) is amended by striking ``the Cooperative
State Research, Education, and Extension Service'' and
inserting ``the National Institute of Food and Agriculture''.
(2) Section 524(a) of the Federal Crop Insurance Act (7
U.S.C. 1524(a)) is amended in each of paragraphs (1)(B) and
(3)(A) by striking ``the Cooperative State Research,
Education, and Extension Service'' each place it appears and
inserting ``the National Institute of Food and Agriculture''.
(3) Section 306(a)(11)(C) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1926(a)(11)(C)) is amended by
striking ``the Cooperative State Research, Education, and
Extension Service'' and inserting ``the National Institute of
Food and Agriculture''.
(4) Section 5(b)(2)(E) of the Agricultural Credit
Improvement Act of 1992 (7 U.S.C. 1929 note; Public Law 102-
554) is amended by striking ``Cooperative Extension Service''
and inserting ``National Institute of Food and Agriculture''.
(5) Section 11(f)(1) of the Food and Nutrition Act of 2008
(7 U.S.C. 2020(f)(1)) is amended by striking ``Cooperative
Extension Service'' and inserting ``National Institute of
Food and Agriculture''.
(6) Section 502(h) of the Rural Development Act of 1972 (7
U.S.C. 2662(h)) is amended--
(A) in paragraph (1), by striking ``Extension Service'' and
inserting ``National Institute of Food and Agriculture''; and
(B) in paragraph (4), by striking ``Extension Service
staff'' and inserting ``National Institute of Food and
Agriculture staff''.
(7) Section 7404(b)(1)(B) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 3101 note; Public Law 107-
171) is amended by striking clause (vi) and inserting the
following:
``(vi) the National Institute of Food and Agriculture.''.
(8) Section 1408(b)(4) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3123(b)(4)) is amended by striking ``the Administrator
of the Cooperative State Research, Education, and Extension
Service'' and inserting ``the Director of the National
Institute of Food and Agriculture''.
(9) Section 2381(a) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 3125b(a)) is amended by
striking ``Extension Service'' and inserting ``National
Institute of Food and Agriculture''.
(10) The National Agricultural Research, Extension, and
Teaching Policy Act of 1977 is amended--
(A) in section 1424A(b) (7 U.S.C. 3174a(b)), by striking
``the Cooperative State Research, Education, and Extension
Service'' and inserting ``the National Institute of Food and
Agriculture''; and
(B) in section 1458(a)(10) (7 U.S.C. 3291(a)(10)), by
striking ``the Cooperative State Research, Education, and
Extension Service'' and inserting ``the National Institute of
Food and Agriculture''.
(11) Section 1587(a) of the Food Security Act of 1985 (7
U.S.C. 3175d(a)) is amended by striking ``Extension Service''
each place it appears and inserting ``National Institute of
Food and Agriculture''.
(12) Section 1444(b)(2)(A) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3221(b)(2)(A)) is amended by striking ``Extension
Service'' and inserting ``National Institute of Food and
Agriculture''.
(13) Section 1473D(d) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3319d(d)) is amended by striking ``the Cooperative
State Research Service, the Extension Service'' and inserting
``the National Institute of Food and Agriculture''.
(14) Section 1499(c) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5506(c)) is
amended by striking ``the Cooperative State Research
Service'' and all that follows through ``extension
services;'' and inserting ``the National Institute of Food
and Agriculture, in conjunction with the system of State
agricultural experiment stations and State and county
cooperative extension services; the Economic Research
Service;''.
(15) Section 1622 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5812) is amended--
(A) in subsection (a)(1), by striking ``the Cooperative
State Research Service in close cooperation with the
Extension Service'' and inserting ``the National Institute of
Food and Agriculture'';
(B) in subsection (b)(1)--
(i) by striking subparagraphs (B) and (C) and inserting the
following:
``(B) the National Institute of Food and Agriculture;'';
and
(ii) by redesignating subparagraphs (D) through (L) as
subparagraphs (C) through (K), respectively.
(16) Section 1627(d) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5821(d)) is
amended by striking ``Extension Service'' and inserting
``National Institute of Food and Agriculture''.
(17) Section 1629 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5832) is amended--
(A) in subsection (b), in the first sentence, by striking
``the Extension Service'' and inserting ``the National
Institute of Food and Agriculture''; and
(B) in subsection (h), by striking ``Extension Service''
and inserting ``National Institute of Food and Agriculture''.
(18) Section 1638(b) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5852(b)) is
amended--
(A) in paragraph (3), by striking ``Cooperative State
Research Service'' and inserting ``National Institute of Food
and Agriculture''; and
(B) in paragraph (5), by striking ``Cooperative State
Research Service'' and inserting ``National Institute of Food
and Agriculture''.
(19) Section 1640(a)(2) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5854(a)(2)) is
amended by striking ``the Administrator of the Extension
Service, the Administrator of the Cooperative State Research
Service'' and inserting ``the Director of the National
Institute of Food and Agriculture''.
(20) Section 1641(a) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5855(a)) is
amended--
(A) in paragraph (2), by striking ``Cooperative State
Research Service'' and inserting ``National Institute of Food
and Agriculture''; and
(B) in paragraph (4,) by striking ``Extension Service'' and
inserting ``National Institute of Food and Agriculture''.
(21) Section 1668(b) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5921(b)) is
amended by striking ``Cooperative State Research, Education,
and Extension Service'' and inserting ``National Institute of
Food and Agriculture''.
(22) Section 1670(a)(4) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5923(a)(4)) is
amended by striking ``the Administrator of the Cooperative
State Research, Education, and Extension Service'' and
inserting ``the Director of the National Institute of Food
and Agriculture''.
(23) Section 1677(a) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 5930(a)) is
amended by striking ``Extension Service'' and inserting
``National Institute of Food and Agriculture''.
(24) Section 2122(b)(1) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 6521(b)(1)) is
amended by striking ``Extension Service'' and inserting
``National Institute of Food and Agriculture''.
(25) Section 2371 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 6601) is amended--
(A) in subsection (a), by striking ``Extension Service''
and inserting ``National Institute of Food and Agriculture'';
and
(B) in subsection (c)(3), by striking ``Service'' and
inserting ``System''.
(26) Section 2377(a) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 6615(a)) is
amended by striking ``Extension Service'' and inserting
``National Institute of Food and Agriculture''.
(27) Section 212(a)(2)(A) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6912(a)(2)(A)) is
amended by striking ``251(d),'' and inserting ``251(f),''.
(28) Section 537 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7446) is amended in each of
subsections (a)(2) and (b)(3)(B)(i) by striking ``Cooperative
State Research, Education, and Extension Service'' and
inserting ``cooperative extension''.
(29) Section 101(b)(2) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7611(b)(2)) is amended by striking ``Cooperative State
Research, Education, and Extension Service'' and inserting
``National Institute of Food and Agriculture''.
(30) Section 103(a) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7613(a)) is amended--
(A) in the subsection heading, by striking ``Cooperative
State Research, Education, and Extension Service'' and
inserting ``National Institute of Food and Agriculture''; and
(B) in each of paragraphs (1) and (2)(A), by striking ``the
Cooperative State Research, Education, and Extension
Service'' and inserting ``the National Institute of Food and
Agriculture''.
(31) Section 407(c) of the Agricultural Research,
Extension, and Education Reform
[[Page H4574]]
Act of 1998 (7 U.S.C. 7627(c)) is amended by striking ``the
Cooperative State Research, Education, and Extension
Service'' and inserting ``the National Institute of Food and
Agriculture''.
(32) Section 410(a) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7630(a)) is amended by striking ``the Administrator of the
Cooperative State Research, Education, and Extension
Service'' and inserting ``the Director of the National
Institute of Food and Agriculture''.
(33) Section 307(g)(5) of the Agricultural Risk Protection
Act of 2000 (7 U.S.C. 8606(g)(5)) is amended by striking
``Administrator of the Cooperative State Research, Education,
and Extension Service'' and inserting ``Director of the
National Institute of Food and Agriculture''.
(34) Section 5(a) of the Renewable Resources Extension Act
of 1978 (16 U.S.C. 1674a(a)) is amended by striking
``Extension Service'' and inserting ``National Institute of
Food and Agriculture''.
(35) Section 6(b) of the Cooperative Forestry Assistance
Act of 1978 (16 U.S.C. 2103b(b)) is amended by striking ``the
Cooperative State Research, Education, and Extension Service,
may provide technical, financial, and related assistance to
State foresters, equivalent State officials, or Cooperative
Extension officials'' and inserting ``the National Institute
of Food and Agriculture, may provide technical, financial,
and related assistance to State foresters, equivalent State
officials, or cooperative extension officials''.
(36) Section 9(g)(2)(A)(viii) of the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2105(g)(2)(A)(viii)) is
amended by striking ``Extension Service'' and inserting
``National Institute of Food and Agriculture''.
(37) Section 19(b)(1)(B)(i) of the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2113(b)(1)(B)(i)) is
amended by striking ``Extension Service'' and inserting
``National Institute of Food and Agriculture''.
(38) Section 1261(c)(4) of the Food Security Act of 1985
(16 U.S.C. 3861(c)(4)) is amended by striking ``Extension
Service'' and inserting ``National Institute of Food and
Agriculture''.
(39) Section 105(a) of the Africa: Seeds of Hope Act of
1998 (22 U.S.C. 2293 note; Public Law 105-385) is amended by
striking ``the Cooperative State, Research, Education, and
Extension Service (CSREES)'' and inserting ``the National
Institute of Food and Agriculture''.
(40) Section 307(a)(4) of the National Aeronautic and Space
Administration Authorization Act of 2005 (42 U.S.C.
16657(a)(4)) is amended by striking subparagraph (B) and
inserting the following:
``(B) the program and structure of, peer review process of,
management of conflicts of interest by, compensation of
reviewers of, and the effects of compensation on reviewer
efficiency and quality within, the National Institute of Food
and Agriculture of the Department of Agriculture;''.
PART III--NEW GRANT AND RESEARCH PROGRAMS
SEC. 7521. RESEARCH AND EDUCATION GRANTS FOR THE STUDY OF
ANTIBIOTIC-RESISTANT BACTERIA.
(a) In General.--The Secretary shall provide research and
education grants, on a competitive basis--
(1) to study the development of antibiotic-resistant
bacteria, including--
(A) movement of antibiotic-resistant bacteria into
groundwater and surface water; and
(B) the effect on antibiotic resistance from various drug
use regimens; and
(2) to study and ensure the judicious use of antibiotics in
veterinary and human medicine, including--
(A) methods and practices of animal husbandry;
(B) safe and effective alternatives to antibiotics;
(C) the development of better veterinary diagnostics to
improve decisionmaking; and
(D) the identification of conditions or factors that affect
antibiotic use on farms.
(b) Administration.--Paragraphs (4), (7), (8), and (11)(B)
of subsection (b) of the Competitive, Special, and Facilities
Research Grant Act (7 U.S.C. 450i) shall apply with respect
to the making of grants under this section.
(c) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section for each of fiscal years 2008 through 2012.
SEC. 7522. FARM AND RANCH STRESS ASSISTANCE NETWORK.
(a) In General.--The Secretary, in coordination with the
Secretary of Health and Human Services, shall make
competitive grants to support cooperative programs between
State cooperative extension services and nonprofit
organizations to establish a Farm and Ranch Stress Assistance
Network that provides stress assistance programs to
individuals who are engaged in farming, ranching, and other
agriculture-related occupations.
(b) Eligible Programs.--Grants awarded under subsection (a)
may be used to initiate, expand, or sustain programs that
provide professional agricultural behavioral health
counseling and referral for other forms of assistance as
necessary through--
(1) farm telephone helplines and websites;
(2) community education;
(3) support groups;
(4) outreach services and activities; and
(5) home delivery of assistance, in a case in which a farm
resident is homebound.
(c) Extension Services.--Grants shall be awarded under this
subsection directly to State cooperative extension services
to enable the State cooperative extension services to enter
into contracts, on a multiyear basis, with nonprofit,
community-based, direct-service organizations to initiate,
expand, or sustain cooperative programs described in
subsections (a) and (b).
(d) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section for each of fiscal years 2008 through 2012.
SEC. 7523. SEED DISTRIBUTION.
(a) In General.--The Secretary shall make competitive
grants to eligible entities to carry out a seed distribution
program to administer and maintain the distribution of
vegetable seeds donated by commercial seed companies.
(b) Purposes.--The purposes of this program include--
(1) the distribution of seeds donated by commercial seed
companies free-of-charge to appropriate--
(A) individuals;
(B) groups;
(C) institutions;
(D) governmental and nongovernmental organizations; and
(E) such other entities as the Secretary may designate;
(2) distribution of seeds to underserved communities, such
as communities that experience--
(A) limited access to affordable fresh vegetables;
(B) a high rate of hunger or food insecurity; or
(C) severe or persistent poverty.
(c) Administration.--Paragraphs (4), (7), (8), and (11)(B)
of subsection (b) of the Competitive, Special, and Facilities
Research Grant Act (7 U.S.C. 450i) shall apply with respect
to the making of grants under this section.
(d) Selection.--An eligible entity selected to receive a
grant under subsection (a) shall have--
(1) expertise regarding the distribution of vegetable seeds
donated by commercial seed companies; and
(2) the ability to achieve the purpose of the seed
distribution program.
(e) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section for each of fiscal years 2008 through 2012.
SEC. 7524. LIVE VIRUS FOOT AND MOUTH DISEASE RESEARCH.
(a) In General.--The Secretary shall issue a permit
required under section 12 of the Act of May 29, 1884 (21
U.S.C. 113a) to the Secretary of Homeland Security for work
on the live virus of foot and mouth disease at any facility
that is a successor to the Plum Island Animal Disease Center
and charged with researching high-consequence biological
threats involving zoonotic and foreign animal diseases
(referred to in this section as the ``successor facility'').
(b) Limitation to Single Facility.--Not more than 1
facility shall be issued a permit under subsection (a).
(c) Limitation on Validity.--The permit issued under this
section shall be valid unless the Secretary determines that
the study of live foot and mouth disease virus at the
successor facility is not being carried out in accordance
with the regulations promulgated by the Secretary pursuant to
the Agricultural Bioterrorism Protection Act of 2002 (7
U.S.C. 8401 et seq.).
(d) Authority.--The suspension, revocation, or other
impairment of the permit issued under this section--
(1) shall be made by the Secretary; and
(2) is a nondelegable function.
SEC. 7525. NATURAL PRODUCTS RESEARCH PROGRAM.
(a) In General.--The Secretary shall establish within the
Department a natural products research program.
(b) Duties.--In carrying out the program established under
subsection (a), the Secretary shall coordinate research
relating to natural products, including--
(1) research to improve human health and agricultural
productivity through the discovery, development, and
commercialization of products and agrichemicals from
bioactive natural products, including products from plant,
marine, and microbial sources;
(2) research to characterize the botanical sources,
production, chemistry, and biological properties of plant-
derived natural products; and
(3) other research priorities identified by the Secretary.
(c) Peer and Merit Review.--The Secretary shall--
(1) determine the relevance and merit of research under
this section through a system of peer review established by
the Secretary pursuant to section 103 of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7613); and
(2) approve funding for research on the basis of merit,
quality, and relevance to advancing the purposes of this
section.
(d) Buildings and Facilities.--Funds made available under
this section shall not be used for the construction of a new
building or facility or the acquisition, expansion,
remodeling, or alteration of an existing building or facility
(including site grading and improvement and architect fees).
(e) Authorization of Appropriations.--There are authorized
to be appropriated to
[[Page H4575]]
carry out this section such sums as are necessary for each of
fiscal years 2008 through 2012.
SEC. 7526. SUN GRANT PROGRAM.
(a) Establishment.--The Secretary shall establish and carry
out a program to provide grants to the sun grant centers and
subcenter specified in subsection (b)--
(1) to enhance national energy security through the
development, distribution, and implementation of biobased
energy technologies;
(2) to promote diversification in, and the environmental
sustainability of, agricultural production in the United
States through biobased energy and product technologies;
(3) to promote economic diversification in rural areas of
the United States through biobased energy and product
technologies; and
(4) to enhance the efficiency of bioenergy and biomass
research and development programs through improved
coordination and collaboration among--
(A) the Department of Agriculture;
(B) the Department of Energy; and
(C) land-grant colleges and universities.
(b) Grants.--
(1) In general.--The Secretary shall use amounts made
available under subsection (g) to provide grants to each of
the following:
(A) North-central center.--A north-central sun grant center
at South Dakota State University for the region composed of
the States of Illinois, Indiana, Iowa, Minnesota, Montana,
Nebraska, North Dakota, South Dakota, Wisconsin, and Wyoming.
(B) Southeastern center.--A southeastern sun grant center
at the University of Tennessee at Knoxville for the region
composed of--
(i) the States of Alabama, Florida, Georgia, Kentucky,
Mississippi, North Carolina, South Carolina, Tennessee, and
Virginia;
(ii) the Commonwealth of Puerto Rico; and
(iii) the United States Virgin Islands.
(C) South-central center.--A south-central sun grant center
at Oklahoma State University for the region composed of the
States of Arkansas, Colorado, Kansas, Louisiana, Missouri,
New Mexico, Oklahoma, and Texas.
(D) Western center.--A western sun grant center at Oregon
State University for the region composed of--
(i) the States of Alaska, Arizona, California, Hawaii,
Idaho, Nevada, Oregon, Utah, and Washington; and
(ii) insular areas (as defined in section 1404 of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3103 (other than the insular
areas referred to in clauses (ii) and (iii) of subparagraph
(B))).
(E) Northeastern center.--A northeastern sun grant center
at Cornell University for the region composed of the States
of Connecticut, Delaware, Massachusetts, Maryland, Maine,
Michigan, New Hampshire, New Jersey, New York, Ohio,
Pennsylvania, Rhode Island, Vermont, and West Virginia.
(F) Western insular pacific subcenter.--A western insular
Pacific sun grant subcenter at the University of Hawaii for
the region of Alaska, Hawaii, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, the Federated
States of Micronesia, the Republic of the Marshall Islands,
and the Republic of Palau.
(2) Manner of distribution.--
(A) Centers.--In providing any funds made available under
subsection (g), the Secretary shall distribute the grants in
equal amounts to the sun grant centers described in
subparagraphs (A) through (E) of paragraph (1).
(B) Subcenter.--The sun grant center described in paragraph
(1)(D) shall allocate a portion of the funds received under
paragraph (1) to the subcenter described in paragraph (1)(F)
pursuant to guidance issued by the Secretary.
(3) Failure to comply with requirements.--If the Secretary
finds on the basis of a review of the annual report required
under subsection (f) or on the basis of an audit of a sun
grant center or subcenter conducted by the Secretary that the
center or subcenter has not complied with the requirements of
this section, the sun grant center or subcenter shall be
ineligible to receive further grants under this section for
such period of time as may be prescribed by the Secretary.
(c) Use of Funds.--
(1) Competitive grants.--
(A) In general.--A sun grant center or subcenter shall use
75 percent of the funds described in subsection (b) to
provide competitive grants to entities that are--
(i) eligible to receive grants under subsection (b)(7) of
the Competitive, Special, and Facilities Research Grant Act
(7 U.S.C. 450i(b)(7)); and
(ii) located in the region covered by the sun grant center
or subcenter.
(B) Activities.--Grants described in subparagraph (A) shall
be used by the grant recipient to conduct, in a manner
consistent with the purposes described in subsection (a),
multi-institutional and multistate--
(i) research, extension, and education programs on
technology development; and
(ii) integrated research, extension, and education programs
on technology implementation.
(C) Funding allocation.--Of the amount of funds that is
used to provide grants under subparagraph (A), the sun grant
center or subcenter shall use--
(i) not less than 30 percent of the funds to carry out the
programs described in subparagraph (B)(i); and
(ii) not less than 30 percent of the funds to carry out the
programs described in subparagraph (B)(ii).
(D) Administration.--
(i) Peer and merit review.--In making grants under this
paragraph, a sun grant center or subcenter shall--
(I) seek and accept proposals for grants;
(II) determine the relevance and merit of proposals through
a system of peer review similar to that established by the
Secretary pursuant to section 103 of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7613); and
(III) award grants on the basis of merit, quality, and
relevance to advancing the purposes of this section.
(ii) Priority.--A sun grant center or subcenter shall give
a higher priority to programs that are consistent with the
plan approved by the Secretary under subsection (d).
(iii) Term.--A grant awarded by a sun grant center or
subcenter shall have a term that does not exceed 5 years.
(iv) Matching funds required.--
(I) In general.--Except as provided in subclauses (II) and
(III), as a condition of receiving a grant under this
paragraph, the sun grant center or subcenter shall require
that not less than 20 percent of the cost of an activity
described in subparagraph (B) be matched with funds,
including in-kind contributions, from a non-Federal source.
(II) Exclusion.--Subclause (I) shall not apply to
fundamental research (as defined in subsection (f)(1) of
section 251 of the Department of Agriculture Reorganization
Act of 1994 (7 U.S.C. 6971) (as added by section 7511(a)(4)).
(III) Reduction.--The sun grant center or subcenter may
reduce or eliminate the requirement for non-Federal funds
under subclause (I) for applied research (as defined in
subsection (f)(1) of section 251 of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6971) (as
added by section 7511(a)(4)) if the sun grant center or
subcenter determines that the reduction is necessary and
appropriate pursuant to guidance issued by the Secretary.
(v) Buildings and facilities.--Funds made available for
grants shall not be used for the construction of a new
building or facility or the acquisition, expansion,
remodeling, or alteration of an existing building or facility
(including site grading and improvement and architect fees).
(vi) Limitation on indirect costs.--A sun grant center or
subcenter may not recover the indirect costs of making grants
under subparagraph (A).
(2) Administrative expenses.--A sun grant center or
subcenter may use up to 4 percent of the funds described in
subsection (b) to pay administrative expenses incurred in
carrying out paragraph (1).
(3) Research, extension and educational activities.--The
sun grant centers and subcenter shall use the remainder of
the funds described in subsection (b) to conduct, in a manner
consistent with the purposes described in subsection (a),
multi-institutional and multistate--
(A) research, extension, and educational programs on
technology development; and
(B) integrated research, extension, and educational
programs on technology implementation.
(d) Plan for Research Activities to Be Funded.--
(1) In general.--Subject to the availability of funds under
subsection (g), and in cooperation with land-grant colleges
and universities and private industry in accordance with
paragraph (2), the sun grant centers and subcenter shall
jointly develop and submit to the Secretary for approval a
plan for addressing the bioenergy, biomass, and gasification
research priorities of the Department of Agriculture and the
Department of Energy at the State and regional levels.
(2) Gasification coordination.--With respect to
gasification research activity, the sun grant centers and
subcenter shall coordinate planning with land-grant colleges
and universities in their respective regions that have
ongoing research activities in that area.
(3) Funding.--Funds described in subsection (c)(2) shall be
available to carry out planning coordination under paragraph
(1).
(4) Use of plan.--The sun grant centers and subcenter shall
use the plan described in paragraph (1) in making grants
under subsection (c)(1).
(e) Grant Information Analysis Center.--The sun grant
centers and subcenter shall maintain a Sun Grant Information
Analysis Center at the sun grant center specified in
subsection (b)(1)(A) to provide the sun grant centers and
subcenter with analysis and data management support.
(f) Annual Reports.--Not later than 90 days after the end
of each fiscal year, a sun grant center or subcenter
receiving a grant under this section shall submit to the
Secretary a report that describes the policies, priorities,
and operations of the program carried out by the center or
subcenter during the fiscal year, including--
(1) the results of all peer and merit review procedures
conducted pursuant to subsection (c)(1)(D)(i); and
(2) a description of progress made in facilitating the
priorities described in subsection (d)(1).
(g) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $75,000,000 for
each of fiscal years 2008 through 2012, of which not more
than $4,000,000 for each fiscal year shall
[[Page H4576]]
be made available to carry out subsection (e).
SEC. 7527. STUDY AND REPORT ON FOOD DESERTS.
(a) Definition of Food Desert.--In this section, the term
``food desert'' means an area in the United States with
limited access to affordable and nutritious food,
particularly such an area composed of predominantly lower-
income neighborhoods and communities.
(b) Study and Report.--The Secretary shall carry out a
study of, and prepare a report on, food deserts.
(c) Contents.--The study and report shall--
(1) assess the incidence and prevalence of food deserts;
(2) identify--
(A) characteristics and factors causing and influencing
food deserts; and
(B) the effect on local populations of limited access to
affordable and nutritious food; and
(3) provide recommendations for addressing the causes and
effects of food deserts through measures that include--
(A) community and economic development initiatives;
(B) incentives for retail food market development,
including supermarkets, small grocery stores, and farmers'
markets; and
(C) improvements to Federal food assistance and nutrition
education programs.
(d) Coordination With Other Agencies and Organizations.--
The Secretary shall conduct the study under this section in
coordination and consultation with--
(1) the Secretary of Health and Human Services;
(2) the Administrator of the Small Business Administration;
(3) the Institute of Medicine; and
(4) representatives of appropriate businesses, academic
institutions, and nonprofit and faith-based organizations.
(e) Submission to Congress.--Not later than 1 year after
the date of enactment of this Act, the Secretary shall submit
to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate the report prepared under this
section, including the findings and recommendations described
in subsection (c).
(f) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $500,000.
SEC. 7528. DEMONSTRATION PROJECT AUTHORITY FOR TEMPORARY
POSITIONS.
Notwithstanding section 4703(d)(1) of title 5, United
States Code, the amendment to the personnel management
demonstration project established in the Department of
Agriculture (67 Fed. Reg. 70776 (2002)), shall become
effective upon the date of enactment of this Act and shall
remain in effect unless modified by law.
SEC. 7529. AGRICULTURAL AND RURAL TRANSPORTATION RESEARCH AND
EDUCATION.
(a) In General.--The Secretary, in consultation with the
Secretary of Transportation, shall make competitive grants to
institutions of higher education to carry out agricultural
and rural transportation research and education activities.
(b) Activities.--Research and education grants made under
this section shall be used to address rural transportation
and logistics needs of agricultural producers and related
rural businesses, including--
(1) the transportation of biofuels; and
(2) the export of agricultural products.
(c) Selection Criteria.--
(1) In general.--The Secretary shall award grants under
this section on the basis of the transportation research,
education, and outreach expertise of the applicant, as
determined by the Secretary.
(2) Priority.--In awarding grants under this section, the
Secretary shall give priority to institutions of higher
education for use in coordinating research and education
activities with other institutions of higher education with
similar agricultural and rural transportation research and
education programs.
(d) Diversification of Research.--The Secretary shall award
grants under this section in areas that are regionally
diverse and broadly representative of the diversity of
agricultural production and related transportation needs in
the rural areas of the United States.
(e) Matching Funds Requirement.--The Secretary shall
require each recipient of a grant under this section to
provide, from non-Federal sources, in cash or in kind, 50
percent of the cost of carrying out activities under the
grant.
(f) Grant Review.--A grant shall be awarded under this
section on a competitive, peer- and merit-reviewed basis in
accordance with section 103(a) of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C.
7613(a)).
(g) No Duplication.--In awarding grants under this section,
the Secretary shall ensure that activities funded under this
section do not duplicate the efforts of the University
Transportation Centers described in sections 5505 and 5506 of
title 49, United States Code.
(h) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $5,000,000 for
each of fiscal years 2008 through 2012.
TITLE VIII--FORESTRY
Subtitle A--Amendments to Cooperative Forestry Assistance Act of 1978
SEC. 8001. NATIONAL PRIORITIES FOR PRIVATE FOREST
CONSERVATION.
Section 2 of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2101) is amended--
(1) by redesignating subsections (c) and (d) as subsections
(e) and (f), respectively; and
(2) by inserting after subsection (b) the following new
subsections:
``(c) Priorities.--In allocating funds appropriated or
otherwise made available under this Act, the Secretary shall
focus on the following national private forest conservation
priorities, notwithstanding other priorities specified
elsewhere in this Act:
``(1) Conserving and managing working forest landscapes for
multiple values and uses.
``(2) Protecting forests from threats, including
catastrophic wildfires, hurricanes, tornados, windstorms,
snow or ice storms, flooding, drought, invasive species,
insect or disease outbreak, or development, and restoring
appropriate forest types in response to such threats.
``(3) Enhancing public benefits from private forests,
including air and water quality, soil conservation,
biological diversity, carbon storage, forest products,
forestry-related jobs, production of renewable energy,
wildlife, wildlife corridors and wildlife habitat, and
recreation.
``(d) Reporting Requirement.--Not later than September 30,
2011, the Secretary shall submit to Congress a report
describing how funds were used under this Act, and through
other programs administered by the Secretary, to address the
national priorities specified in subsection (c) and the
outcomes achieved in meeting the national priorities.''.
SEC. 8002. LONG-TERM STATE-WIDE ASSESSMENTS AND STRATEGIES
FOR FOREST RESOURCES.
The Cooperative Forestry Assistance Act of 1978 is amended
by inserting after section 2 (16 U.S.C. 2101) the following
new section:
``SEC. 2A. STATE-WIDE ASSESSMENT AND STRATEGIES FOR FOREST
RESOURCES.
``(a) Assessment and Strategies for Forest Resources.--For
a State to be eligible to receive funds under the authorities
of this Act, the State forester of that State or equivalent
State official shall develop and submit to the Secretary, not
later than two years after the date of enactment of the Food,
Conservation, and Energy Act of 2008, the following:
``(1) A State-wide assessment of forest resource
conditions, including--
``(A) the conditions and trends of forest resources in that
State;
``(B) the threats to forest lands and resources in that
State consistent with the national priorities specified in
section 2(c);
``(C) any areas or regions of that State that are a
priority; and
``(D) any multi-State areas that are a regional priority.
``(2) A long-term State-wide forest resource strategy,
including--
``(A) strategies for addressing threats to forest resources
in the State outlined in the assessment required by paragraph
(1); and
``(B) a description of the resources necessary for the
State forester or equivalent State official from all sources
to address the State-wide strategy.
``(b) Updating.--At such times as the Secretary determines
to be necessary, the State forester or equivalent State
official shall update and resubmit to the Secretary the
State-wide assessment and State-wide strategy required by
subsection (a).
``(c) Coordination.--In developing or updating the State-
wide assessment and State-wide strategy required by
subsection (a), the State Forester or equivalent State
official shall coordinate with--
``(1) the State Forest Stewardship Coordinating Committee
established for the State under section 19(b);
``(2) the State wildlife agency, with respect to strategies
contained in the State wildlife action plans;
``(3) the State Technical Committee;
``(4) applicable Federal land management agencies; and
``(5) for purposes of the Forest Legacy Program under
section 7, the State lead agency designated by the Governor.
``(d) Incorporation of Other Plans.--In developing or
updating the State-wide assessment and State-wide strategy
required by subsection (a), the State forester or equivalent
State official shall incorporate any forest management plan
of the State, including community wildfire protection plans
and State wildlife action plans.
``(e) Sufficiency.--Once approved by the Secretary, a
State-wide assessment and State-wide strategy developed under
subsection (a) shall be deemed to be sufficient to satisfy
all relevant State planning and assessment requirements under
this Act.
``(f) Funding.--
``(1) Authorization of appropriations.--There are
authorized to be appropriated to carry out this section up to
$10,000,000 for each of fiscal years 2008 through 2012.
``(2) Additional funding sources.--In addition to the funds
appropriated for a fiscal year pursuant to the authorization
of appropriations in paragraph (1) to carry out this section,
the Secretary may use any other funds made available for
planning under this Act to carry out this section, except
that the total amount of combined funding used to carry out
this section may not exceed $10,000,000 in any fiscal year.
``(g) Annual Report on Use of Funds.--The State forester or
equivalent State official shall submit to the Secretary an
annual report detailing how funds made available to the State
under this Act are being used.''.
[[Page H4577]]
SEC. 8003. COMMUNITY FOREST AND OPEN SPACE CONSERVATION
PROGRAM.
(a) Findings.--Congress finds that--
(1) the Forest Service projects that, by calendar year
2030, approximately 44,000,000 acres of privately-owned
forest land will be developed throughout the United States;
(2) public access to parcels of privately-owned forest land
for outdoor recreational activities, including hunting,
fishing, and trapping, has declined and, as a result,
participation in those activities has also declined in cases
in which public access is not secured;
(3) rising rates of obesity and other public health
problems relating to the inactivity of the citizens of the
United States have been shown to be ameliorated by improving
public access to safe and attractive areas for outdoor
recreation;
(4) in rapidly-growing communities of all sizes throughout
the United States, remaining parcels of forest land play an
essential role in protecting public water supplies;
(5) forest parcels owned by local governmental entities and
nonprofit organizations are providing important demonstration
sites for private landowners to learn forest management
techniques;
(6) throughout the United States, communities of diverse
types and sizes are deriving significant financial and
community benefits from managing forest land owned by local
governmental entities for timber and other forest products;
and
(7) there is an urgent need for local governmental entities
to be able to leverage financial resources in order to
purchase important parcels of privately-owned forest land as
the parcels are offered for sale.
(b) Community Forest and Open Space Conservation Program.--
The Cooperative Forestry Assistance Act of 1978 is amended by
inserting after section 7 (16 U.S.C. 2103c) the following new
section:
``SEC. 7A. COMMUNITY FOREST AND OPEN SPACE CONSERVATION
PROGRAM.
``(a) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means a
local governmental entity, Indian tribe, or nonprofit
organization that owns or acquires a parcel under the
program.
``(2) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(3) Local governmental entity.--The term `local
governmental entity' includes any municipal government,
county government, or other local government body with
jurisdiction over local land use decisions.
``(4) Nonprofit organization.--The term `nonprofit
organization' means any organization that--
``(A) is described in section 170(h)(3) of the Internal
Revenue Code of 1986; and
``(B) operates in accordance with 1 or more of the purposes
specified in section 170(h)(4)(A) of that Code.
``(5) Program.--The term `Program' means the community
forest and open space conservation program established under
subsection (b).
``(6) Secretary.--The term `Secretary' means the Secretary
of Agriculture, acting through the Chief of the Forest
Service.
``(b) Establishment.--The Secretary shall establish a
program, to be known as the `community forest and open space
conservation program'.
``(c) Grant Program.--
``(1) In general.--The Secretary may award grants to
eligible entities to acquire private forest land, to be owned
in fee simple, that--
``(A) are threatened by conversion to nonforest uses; and
``(B) provide public benefits to communities, including--
``(i) economic benefits through sustainable forest
management;
``(ii) environmental benefits, including clean water and
wildlife habitat;
``(iii) benefits from forest-based educational programs,
including vocational education programs in forestry;
``(iv) benefits from serving as models of effective forest
stewardship for private landowners; and
``(v) recreational benefits, including hunting and fishing.
``(2) Federal cost share.--An eligible entity may receive a
grant under the Program in an amount equal to not more than
50 percent of the cost of acquiring 1 or more parcels, as
determined by the Secretary.
``(3) Non-federal share.--As a condition of receipt of the
grant, an eligible entity that receives a grant under the
Program shall provide, in cash, donation, or in kind, a non-
Federal matching share in an amount that is at least equal to
the amount of the grant received.
``(4) Appraisal of parcels.--To determine the non-Federal
share of the cost of a parcel of privately-owned forest land
under paragraph (2), an eligible entity shall require
appraisals of the land that comply with the Uniform Appraisal
Standards for Federal Land Acquisitions developed by the
Interagency Land Acquisition Conference.
``(5) Application.--An eligible entity that seeks to
receive a grant under the Program shall submit to the State
forester or equivalent official (or in the case of an Indian
tribe, an equivalent official of the Indian tribe) an
application that includes--
``(A) a description of the land to be acquired;
``(B) a forest plan that provides--
``(i) a description of community benefits to be achieved
from the acquisition of the private forest land; and
``(ii) an explanation of the manner in which any private
forest land to be acquired using funds from the grant will be
managed; and
``(C) such other relevant information as the Secretary may
require.
``(6) Effect on trust land.--
``(A) Ineligibility.--The Secretary shall not provide a
grant under the Program for any project on land held in trust
by the United States (including Indian reservations and
allotment land).
``(B) Acquired land.--No land acquired using a grant
provided under the Program shall be converted to land held in
trust by the United States on behalf of any Indian tribe.
``(7) Applications to secretary.--The State forester or
equivalent official (or in the case of an Indian tribe, an
equivalent official of the Indian tribe) shall submit to the
Secretary a list that includes a description of each project
submitted by an eligible entity at such times and in such
form as the Secretary shall prescribe.
``(d) Duties of Eligible Entity.--An eligible entity shall
provide public access to, and manage, forest land acquired
with a grant under this section in a manner that is
consistent with the purposes for which the land was acquired
under the Program.
``(e) Prohibited Uses.--
``(1) In general.--Subject to paragraphs (2) and (3), an
eligible entity that acquires a parcel under the Program
shall not sell the parcel or convert the parcel to nonforest
use.
``(2) Reimbursement of funds.--An eligible entity that
sells or converts to nonforest use a parcel acquired under
the Program shall pay to the Federal Government an amount
equal to the greater of the current sale price, or current
appraised value, of the parcel.
``(3) Loss of eligibility.--An eligible entity that sells
or converts a parcel acquired under the Program shall not be
eligible for additional grants under the Program.
``(f) State Administration and Technical Assistance.--The
Secretary may allocate not more than 10 percent of all funds
made available to carry out the Program for each fiscal year
to State foresters or equivalent officials (including
equivalent officials of Indian tribes) for Program
administration and technical assistance.
``(g) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section.''.
SEC. 8004. ASSISTANCE TO THE FEDERATED STATES OF MICRONESIA,
THE REPUBLIC OF THE MARSHALL ISLANDS, AND THE
REPUBLIC OF PALAU.
Section 13(d)(1) of the Cooperative Forestry Act of 1978
(16 U.S.C. 2109(d)(1)) is amended by striking ``the Trust
Territory of the Pacific Islands,'' and inserting ``the
Federated States of Micronesia, the Republic of the Marshall
Islands, the Republic of Palau,''.
SEC. 8005. CHANGES TO FOREST RESOURCE COORDINATING COMMITTEE.
Section 19 of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2113) is amended by striking subsection (a)
and inserting the following new subsection:
``(a) Forest Resource Coordinating Committee.--
``(1) Establishment.--The Secretary shall establish a
committee, to be known as the `Forest Resource Coordinating
Committee' (in this section referred to as the `Coordinating
Committee'), to coordinate nonindustrial private forestry
activities within the Department of Agriculture and with the
private sector.
``(2) Composition.--The Coordinating Committee shall be
composed of the following:
``(A) The Chief of the Forest Service.
``(B) The Chief of the Natural Resources Conservation
Service.
``(C) The Director of the Farm Service Agency.
``(D) The Director of the National Institute of Food and
Agriculture.
``(E) Non-Federal representatives appointed by the
Secretary to 3 year terms, although initial appointees shall
have staggered terms, including the following persons:
``(i) At least three State foresters or equivalent State
officials from geographically diverse regions of the United
States.
``(ii) A representative of a State fish and wildlife
agency.
``(iii) An owner of nonindustrial private forest land.
``(iv) A forest industry representative.
``(v) A conservation organization representative.
``(vi) A land-grant university or college representative.
``(vii) A private forestry consultant.
``(viii) A representative from a State Technical Committee
established under section 1261 of the Food Security Act of
1985 (16 U.S.C. 3861).
``(F) Such other persons as determined by the Secretary to
be appropriate.
``(3) Chairperson.--The Chief of the Forest Service shall
serve as chairperson of the Coordinating Committee.
``(4) Duties.--The Coordinating Committee shall--
[[Page H4578]]
``(A) provide direction and coordination of actions within
the Department of Agriculture, and coordination with State
agencies and the private sector, to effectively address the
national priorities specified in section 2(c), with specific
focus owners of nonindustrial private forest land;
``(B) clarify individual agency responsibilities of each
agency represented on the Coordinating Committee concerning
the national priorities specified in section 2(c), with
specific focus on nonindustrial private forest land;
``(C) provide advice on the allocation of funds, including
the competitive funds set-aside by sections 13A and 13B; and
``(D) assist the Secretary in developing and reviewing the
report required by section 2(d).
``(5) Meeting.--The Coordinating Committee shall meet
annually to discuss progress in addressing the national
priorities specified in section 2(c) and issues regarding
nonindustrial private forest land.
``(6) Compensation.--
``(A) Federal members.--Members of the Coordinating
Committee who are full-time officers or employees of the
United States shall receive no additional pay, allowances, or
benefits by reason of their service on the Coordinating
Committee.
``(B) Non-federal members.--Non-federal members of the
Coordinating Committee shall serve without pay, but may be
reimbursed for reasonable costs incurred while performing
their duties on behalf of the Coordinating Committee.''.
SEC. 8006. CHANGES TO STATE FOREST STEWARDSHIP COORDINATING
COMMITTEES.
Section 19(b) of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2113(b)) is amended--
(1) in paragraph (1)(B)(ii)--
(A) by striking ``and'' at the end of subclause (VII); and
(B) by adding at the end the following new subclause:
``(IX) the State Technical Committee.''.
(2) in paragraph (2)(C), by striking ``a Forest Stewardship
Plan under paragraph (3)'' and inserting ``the State-wide
assessment and strategy regarding forest resource conditions
under section 2A'';
(3) by striking paragraphs (3) and (4); and
(4) by redesignating paragraphs (5) and (6) as paragraphs
(3) and (4), respectively.
SEC. 8007. COMPETITION IN PROGRAMS UNDER COOPERATIVE FORESTRY
ASSISTANCE ACT OF 1978.
The Cooperative Forestry Assistance Act of 1978 is amended
by inserting after section 13 (16 U.S.C. 2109) the following
new section:
``SEC. 13A. COMPETITIVE ALLOCATION OF FUNDS TO STATE
FORESTERS OR EQUIVALENT STATE OFFICIALS.
``(a) Competition.--Beginning not later than 3 years after
the date of the enactment of the Food, Conservation, and
Energy Act of 2008, the Secretary shall competitively
allocate a portion, to be determined by the Secretary, of the
funds available under this Act to State foresters or
equivalent State officials.
``(b) Determination.--In determining the competitive
allocation of funds under subsection (a), the Secretary shall
consult with the Forest Resource Coordinating Committee
established by section 19(a).
``(c) Priority.--The Secretary shall give priority for
funding to States for which the long-term State-wide forest
resource strategies submitted under section 2A(a)(2) will
best promote the national priorities specified in section
2(c).''.
SEC. 8008. COMPETITIVE ALLOCATION OF FUNDS FOR COOPERATIVE
FOREST INNOVATION PARTNERSHIP PROJECTS.
The Cooperative Forestry Assistance Act of 1978 is amended
by inserting after section 13A, as added by section 8006, the
following new section:
``SEC. 13B. COMPETITIVE ALLOCATION OF FUNDS FOR COOPERATIVE
FOREST INNOVATION PARTNERSHIP PROJECTS.
``(a) Cooperative Forest Innovation Partnership Projects.--
The Secretary may competitively allocate not more than 5
percent of the funds made available under this Act to support
innovative national, regional, or local education, outreach,
or technology transfer projects that the Secretary determines
would substantially increase the ability of the Department of
Agriculture to address the national priorities specified in
section 2(c).
``(b) Eligibility.--Notwithstanding the eligibility
limitations contained in this Act, any State or local
government, Indian tribe, land-grant college or university,
or private entity shall be eligible to compete for funds to
be competitively allocated under subsection (a).
``(c) Cost-Share Requirement.--In carrying out subsection
(a), the Secretary shall not cover more than 50 percent of
the total cost of a project under such subsection. In
calculating the total cost of a project and contributions
made with regard to the project, the Secretary shall include
in-kind contributions.''.
Subtitle B--Cultural and Heritage Cooperation Authority
SEC. 8101. PURPOSES.
The purposes of this subtitle are--
(1) to authorize the reburial of human remains and cultural
items on National Forest System land, including human remains
and cultural items repatriated under the Native American
Graves Protection and Repatriation Act (25 U.S.C. 3001 et
seq.);
(2) to prevent the unauthorized disclosure of information
regarding reburial sites, including the quantity and identity
of human remains and cultural items on sites and the location
of sites;
(3) to authorize the Secretary of Agriculture to ensure
access to National Forest System land, to the maximum extent
practicable, by Indians and Indian tribes for traditional and
cultural purposes;
(4) to authorize the Secretary to provide forest products,
without consideration, to Indian tribes for traditional and
cultural purposes;
(5) to authorize the Secretary to protect the
confidentiality of certain information, including information
that is culturally sensitive to Indian tribes;
(6) to increase the availability of Forest Service programs
and resources to Indian tribes in support of the policy of
the United States to promote tribal sovereignty and self-
determination; and
(7) to strengthen support for the policy of the United
States of protecting and preserving the traditional,
cultural, and ceremonial rites and practices of Indian
tribes, in accordance with Public Law 95-341 (commonly known
as the American Indian Religious Freedom Act; 42 U.S.C.
1996).
SEC. 8102. DEFINITIONS.
In this subtitle:
(1) Adjacent site.--The term ``adjacent site'' means a site
that borders a boundary line of National Forest System land.
(2) Cultural items.--The term ``cultural items'' has the
meaning given the term in section 2 of the Native American
Graves Protection and Repatriation Act (25 U.S.C. 3001),
except that the term does not include human remains.
(3) Human remains.--The term ``human remains'' means the
physical remains of the body of a person of Indian ancestry.
(4) Indian.--The term ``Indian'' means an individual who is
a member of an Indian tribe.
(5) Indian tribe.--The term ``Indian tribe'' means any
Indian or Alaska Native tribe, band, nation, pueblo, village,
or other community the name of which is included on a list
published by the Secretary of the Interior pursuant to
section 104 of the Federally Recognized Indian Tribe List Act
of 1994 (25 U.S.C. 479a-1).
(6) Lineal descendant.--The term ``lineal descendant''
means an individual that can trace, directly and without
interruption, the ancestry of the individual through the
traditional kinship system of an Indian tribe, or through the
common law system of descent, to a known Indian, the human
remains, funerary objects, or other sacred objects of whom
are claimed by the individual.
(7) National forest system.--The term ``National Forest
System'' has the meaning given the term in section 11(a) of
the Forest and Rangeland Renewable Resources Planning Act of
1974 (16 U.S.C. 1609(a)).
(8) Reburial site.--The term ``reburial site'' means a
specific physical location at which cultural items or human
remains are reburied.
(9) Traditional and cultural purpose.--The term
``traditional and cultural purpose'', with respect to a
definable use, area, or practice, means that the use, area,
or practice is identified by an Indian tribe as traditional
or cultural because of the long-established significance or
ceremonial nature of the use, area, or practice to the Indian
tribe.
SEC. 8103. REBURIAL OF HUMAN REMAINS AND CULTURAL ITEMS.
(a) Reburial Sites.--In consultation with an affected
Indian tribe or lineal descendant, the Secretary may
authorize the use of National Forest System land by the
Indian tribe or lineal descendant for the reburial of human
remains or cultural items in the possession of the Indian
tribe or lineal descendant that have been disinterred from
National Forest System land or an adjacent site.
(b) Reburial.--With the consent of the affected Indian
tribe or lineal descendent, the Secretary may recover and
rebury, at Federal expense or using other available funds,
human remains and cultural items described in subsection (a)
at the National Forest System land identified under that
subsection.
(c) Authorization of Use.--
(1) In general.--Subject to paragraph (2), the Secretary
may authorize such uses of reburial sites on National Forest
System land, or on the National Forest System land
immediately surrounding a reburial site, as the Secretary
determines to be necessary for management of the National
Forest System.
(2) Avoidance of adverse impacts.--In carrying out
paragraph (1), the Secretary shall avoid adverse impacts to
cultural items and human remains, to the maximum extent
practicable.
SEC. 8104. TEMPORARY CLOSURE FOR TRADITIONAL AND CULTURAL
PURPOSES.
(a) Recognition of Historic Use.--To the maximum extent
practicable, the Secretary shall ensure access to National
Forest System land by Indians for traditional and cultural
purposes, in accordance with subsection (b), in recognition
of the historic use by Indians of National Forest System
land.
(b) Closing Land From Public Access.--
(1) Authority to close.--Upon the approval by the Secretary
of a request from an Indian tribe, the Secretary may
temporarily close from public access specifically identified
National Forest System land to protect the privacy of tribal
activities for traditional and cultural purposes.
(2) Limitation.--A closure of National Forest System land
under paragraph (1) shall affect the smallest practicable
area for the minimum period necessary for activities of the
applicable Indian tribe.
[[Page H4579]]
(3) Consistency.--Access by Indian tribes to National
Forest System land under this subsection shall be consistent
with the purposes of Public Law 95-341 (commonly known as the
American Indian Religious Freedom Act; 42 U.S.C. 1996).
SEC. 8105. FOREST PRODUCTS FOR TRADITIONAL AND CULTURAL
PURPOSES.
(a) In General.--Notwithstanding section 14 of the National
Forest Management Act of 1976 (16 U.S.C. 472a), the Secretary
may provide free of charge to Indian tribes any trees,
portions of trees, or forest products from National Forest
System land for traditional and cultural purposes.
(b) Prohibition.--Trees, portions of trees, or forest
products provided under subsection (a) may not be used for
commercial purposes.
SEC. 8106. PROHIBITION ON DISCLOSURE.
(a) Nondisclosure of Information.--
(1) In general.--The Secretary shall not disclose under
section 552 of title 5, United States Code (commonly known as
the ``Freedom of Information Act''), information relating
to--
(A) subject to subsection (b)(l), human remains or cultural
items reburied on National Forest System land under section
8103; or
(B) subject to subsection (b)(2), resources, cultural
items, uses, or activities that--
(i) have a traditional and cultural purpose; and
(ii) are provided to the Secretary by an Indian or Indian
tribe under an express expectation of confidentiality in the
context of forest and rangeland research activities carried
out under the authority of the Forest Service.
(2) Limitations on disclosure.--Subject to subsection
(b)(2), the Secretary shall not be required to disclose
information under section 552 of title 5, United States Code
(commonly known as the ``Freedom of Information Act''),
concerning the identity, use, or specific location in the
National Forest System of--
(A) a site or resource used for traditional and cultural
purposes by an Indian tribe; or
(B) any cultural items not covered under section 8103.
(b) Limited Release of Information.--
(1) Reburial.--The Secretary may disclose information
described in subsection (a)(l)(A) if, before the disclosure,
the Secretary--
(A) consults with an affected Indian tribe or lineal
descendent;
(B) determines that disclosure of the information--
(i) would advance the purposes of this subtitle; and
(ii) is necessary to protect the human remains or cultural
items from harm, theft, or destruction; and
(C) attempts to mitigate any adverse impacts identified by
an Indian tribe or lineal descendant that reasonably could be
expected to result from disclosure of the information.
(2) Other information.--The Secretary, in consultation with
appropriate Indian tribes, may disclose information described
under paragraph (1)(B) or (2) of subsection (a) if the
Secretary determines that disclosure of the information to
the public--
(A) would advance the purposes of this subtitle;
(B) would not create an unreasonable risk of harm, theft,
or destruction of the resource, site, or object, including
individual organic or inorganic specimens; and
(C) would be consistent with other applicable laws.
SEC. 8107. SEVERABILITY AND SAVINGS PROVISIONS.
(a) Severability.--If any provision of this subtitle, or
the application of any provision of this subtitle to any
person or circumstance is held invalid, the application of
such provision or circumstance and the remainder of this
subtitle shall not be affected thereby.
(b) Savings.--Nothing in this subtitle--
(1) diminishes or expands the trust responsibility of the
United States to Indian tribes, or any legal obligation or
remedy resulting from that responsibility;
(2) alters, abridges, repeals, or affects any valid
agreement between the Forest Service and an Indian tribe;
(3) alters, abridges, diminishes, repeals, or affects any
reserved or other right of an Indian tribe; or
(4) alters, abridges, diminishes, repeals, or affects any
other valid existing right relating to National Forest System
land or other public land.
Subtitle C--Amendments to Other Forestry-Related Laws
SEC. 8201. RURAL REVITALIZATION TECHNOLOGIES.
Section 2371(d)(2) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 6601(d)(2)) is amended by
striking ``2004 through 2008'' and inserting ``2008 through
2012''.
SEC. 8202. OFFICE OF INTERNATIONAL FORESTRY.
Section 2405(d) of the Global Climate Change Prevention Act
of 1990 (7 U.S.C. 6704(d)) is amended by striking ``2007''
and inserting ``2012''.
SEC. 8203. EMERGENCY FOREST RESTORATION PROGRAM.
(a) Establishment.--Title IV of the Agricultural Credit Act
of 1978 (16 U.S.C. 2201 et seq.) is amended by adding at the
end the following new section:
``SEC. 407. EMERGENCY FOREST RESTORATION PROGRAM.
``(a) Definitions.--In this section:
``(1) Emergency measures.--The term `emergency measures'
means those measures that--
``(A) are necessary to address damage caused by a natural
disaster to natural resources on nonindustrial private forest
land, and the damage, if not treated--
``(i) would impair or endanger the natural resources on the
land; and
``(ii) would materially affect future use of the land; and
``(B) would restore forest health and forest-related
resources on the land.
``(2) Natural disaster.--The term `natural disaster'
includes wildfires, hurricanes or excessive winds, drought,
ice storms or blizzards, floods, or other resource-impacting
events, as determined by the Secretary.
``(3) Nonindustrial private forest land.--The term
`nonindustrial private forest land' means rural land, as
determined by the Secretary, that--
``(A) has existing tree cover (or had tree cover
immediately before the natural disaster and is suitable for
growing trees); and
``(B) is owned by any nonindustrial private individual,
group, association, corporation, or other private legal
entity, that has definitive decision-making authority over
the land.
``(4) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``(b) Availability of Assistance.--The Secretary may make
payments to an owner of nonindustrial private forest land who
carries out emergency measures to restore the land after the
land is damaged by a natural disaster.
``(c) Eligibility.--To be eligible to receive a payment
under subsection (b), an owner must demonstrate to the
satisfaction of the Secretary that the nonindustrial private
forest land on which the emergency measures are carried out
had tree cover immediately before the natural disaster.
``(d) Cost Share Requirement.--Payments made under
subsection (b) shall not exceed 75 percent of the total cost
of the emergency measures carried out by an owner of
nonindustrial private forest land.
``(e) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary such funds as
may be necessary to carry out this section. Amounts so
appropriated shall remain available until expended.''.
(b) Regulations.--Not later than one year after the date of
the enactment of this Act, the Secretary of Agriculture shall
issue regulations to carry out section 407 of the
Agricultural Credit Act of 1978, as added by subsection (a).
SEC. 8204. PREVENTION OF ILLEGAL LOGGING PRACTICES.
(a) Definitions.--
(1) Plant.--Subsection (f) of section 2 of the Lacey Act
Amendments of 1981 (16 U.S.C. 3371) is amended to read as
follows:
``(f) Plant.--
``(1) In general.--The terms `plant' and `plants' mean any
wild member of the plant kingdom, including roots, seeds,
parts, or products thereof, and including trees from either
natural or planted forest stands.
``(2) Exclusions.--The terms `plant' and `plants' exclude--
``(A) common cultivars, except trees, and common food crops
(including roots, seeds, parts, or products thereof);
``(B) a scientific specimen of plant genetic material
(including roots, seeds, germplasm, parts, or products
thereof) that is to be used only for laboratory or field
research; and
``(C) any plant that is to remain planted or to be planted
or replanted.
``(3) Exceptions to application of exclusions.--The
exclusions made by subparagraphs (B) and (C) of paragraph (2)
do not apply if the plant is listed--
``(A) in an appendix to the Convention on International
Trade in Endangered Species of Wild Fauna and Flora (27 UST
1087; TIAS 8249);
``(B) as an endangered or threatened species under the
Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.); or
``(C) pursuant to any State law that provides for the
conservation of species that are indigenous to the State and
are threatened with extinction.''.
(2) Inclusion of secretary of agriculture.--Section 2(h) of
the Lacey Act Amendments of 1981 (16 U.S.C. 3371(h)) is
amended by striking ``plants the term means'' and inserting
``plants, the term also means''.
(3) Taken and taking.--Subsection (j) of section 2 of the
Lacey Act Amendments of 1981 (16 U.S.C. 3371) is amended to
read as follows:
``(j) Taken and Taking.--
``(1) Taken.--The term `taken' means captured, killed, or
collected and, with respect to a plant, also means harvested,
cut, logged, or removed.
``(2) Taking.--The term `taking' means the act by which
fish, wildlife, or plants are taken.''.
(b) Prohibited Acts.--
(1) Offenses other than marking.--Section 3(a) of the Lacey
Act Amendments of 1981 (16 U.S.C. 3372(a)) is amended--
(A) in paragraph (2), by striking subparagraph (B) and
inserting the following new subparagraph:
``(B) any plant--
``(i) taken, possessed, transported, or sold in violation
of any law or regulation of any State, or any foreign law,
that protects plants or that regulates--
``(I) the theft of plants;
``(II) the taking of plants from a park, forest reserve, or
other officially protected area;
[[Page H4580]]
``(III) the taking of plants from an officially designated
area; or
``(IV) the taking of plants without, or contrary to,
required authorization;
``(ii) taken, possessed, transported, or sold without the
payment of appropriate royalties, taxes, or stumpage fees
required for the plant by any law or regulation of any State
or any foreign law; or
``(iii) taken, possessed, transported, or sold in violation
of any limitation under any law or regulation of any State,
or under any foreign law, governing the export or
transshipment of plants; or''; and
(B) in paragraph (3), by striking subparagraph (B) and
inserting the following subparagraph:
``(B) to possess any plant--
``(i) taken, possessed, transported, or sold in violation
of any law or regulation of any State, or any foreign law,
that protects plants or that regulates--
``(I) the theft of plants;
``(II) the taking of plants from a park, forest reserve, or
other officially protected area;
``(III) the taking of plants from an officially designated
area; or
``(IV) the taking of plants without, or contrary to,
required authorization;
``(ii) taken, possessed, transported, or sold without the
payment of appropriate royalties, taxes, or stumpage fees
required for the plant by any law or regulation of any State
or any foreign law; or
``(iii) taken, possessed, transported, or sold in violation
of any limitation under any law or regulation of any State,
or under any foreign law, governing the export or
transshipment of plants; or''.
(2) Plant declarations.--Section 3 of the Lacey Act
Amendments of 1981 (16 U.S.C. 3372) is amended by adding at
the end the following new subsection:
``(f) Plant Declarations.--
``(1) Import declaration.--Effective 180 days from the date
of enactment of this subsection, and except as provided in
paragraph (3), it shall be unlawful for any person to import
any plant unless the person files upon importation a
declaration that contains--
``(A) the scientific name of any plant (including the genus
and species of the plant) contained in the importation;
``(B) a description of--
``(i) the value of the importation; and
``(ii) the quantity, including the unit of measure, of the
plant; and
``(C) the name of the country from which the plant was
taken.
``(2) Declaration relating to plant products.--Until the
date on which the Secretary promulgates a regulation under
paragraph (6), a declaration relating to a plant product
shall--
``(A) in the case in which the species of plant used to
produce the plant product that is the subject of the
importation varies, and the species used to produce the plant
product is unknown, contain the name of each species of plant
that may have been used to produce the plant product;
``(B) in the case in which the species of plant used to
produce the plant product that is the subject of the
importation is commonly taken from more than one country, and
the country from which the plant was taken and used to
produce the plant product is unknown, contain the name of
each country from which the plant may have been taken; and
``(C) in the case in which a paper or paperboard plant
product includes recycled plant product, contain the average
percent recycled content without regard for the species or
country of origin of the recycled plant product, in addition
to the information for the non-recycled plant content
otherwise required by this subsection.
``(3) Exclusions.--Paragraphs (1) and (2) shall not apply
to plants used exclusively as packaging material to support,
protect, or carry another item, unless the packaging material
itself is the item being imported.
``(4) Review.--Not later than two years after the date of
enactment of this subsection, the Secretary shall review the
implementation of each requirement imposed by paragraphs (1)
and (2) and the effect of the exclusion provided by paragraph
(3). In conducting the review, the Secretary shall provide
public notice and an opportunity for comment.
``(5) Report.--Not later than 180 days after the date on
which the Secretary completes the review under paragraph (4),
the Secretary shall submit to the appropriate committees of
Congress a report containing--
``(A) an evaluation of--
``(i) the effectiveness of each type of information
required under paragraphs (1) and (2) in assisting
enforcement of this section; and
``(ii) the potential to harmonize each requirement imposed
by paragraphs (1) and (2) with other applicable import
regulations in existence as of the date of the report;
``(B) recommendations for such legislation as the Secretary
determines to be appropriate to assist in the identification
of plants that are imported into the United States in
violation of this section; and
``(C) an analysis of the effect of subsection (a) and this
subsection on--
``(i) the cost of legal plant imports; and
``(ii) the extent and methodology of illegal logging
practices and trafficking.
``(6) Promulgation of regulations.--Not later than 180 days
after the date on which the Secretary completes the review
under paragraph (4), the Secretary may promulgate
regulations--
``(A) to limit the applicability of any requirement imposed
by paragraph (2) to specific plant products;
``(B) to make any other necessary modification to any
requirement imposed by paragraph (2), as determined by the
Secretary based on the review; and
``(C) to limit the scope of the exclusion provided by
paragraph (3), if the limitations in scope are warranted as a
result of the review.''.
(c) Cross-References to New Requirement.--Section 4 of the
Lacey Act Amendments of 1981 (16 U.S.C. 3373) is amended--
(1) by striking ``subsections (b) and (d)'' each place it
appears and inserting ``subsections (b), (d), and (f)'';
(2) by striking ``section 3(d)'' each place it appears and
inserting ``subsection (d) or (f) of section 3''; and
(3) in subsection (a)(2), by striking ``subsection 3(b)''
and inserting ``subsection (b) or (f) of section 3, except as
provided in paragraph (1),''.
(d) Civil Forfeitures.--Section 5 of the Lacey Act
Amendments of 1981 (16 U.S.C. 3374) is amended by adding at
the end the following new subsection:
``(d) Civil Forfeitures.--Civil forfeitures under this
section shall be governed by the provisions of chapter 46 of
title 18, United States Code.''.
(e) Administration.--Section 7 of the Lacey Act Amendments
of 1981 (16 U.S.C. 3376) is amended--
(1) in subsection (a)(1), by striking ``section 4 and
section'' and inserting ``sections 3(f), 4, and''; and
(2) by adding at the end the following new subsection:
``(c) Clarification of Exclusions From Definition of
Plant.--The Secretary of Agriculture and the Secretary of the
Interior, after consultation with the appropriate agencies,
shall jointly promulgate regulations to define the terms used
in section 2(f)(2)(A) for the purposes of enforcement under
this Act.''.
(f) Technical Correction.--Effective as of November 14,
1988, and as if included therein as enacted, section 102(c)
of Public Law 100-653 (102 Stat. 3825) is amended--
(1) by inserting ``of the Lacey Act Amendments of 1981''
after ``Section 4''; and
(2) by striking ``(other than section 3(b))'' and inserting
``(other than subsection 3(b))''.
SEC. 8205. HEALTHY FORESTS RESERVE PROGRAM.
(a) Enrollment.--Section 502 of the Healthy Forests
Restoration Act of 2003 (16 U.S.C. 6572(f)(1)) is amended--
(1) by striking subsections (e) and (f);
(2) by redesignating subsection (g) as subsection (f); and
(3) by inserting after subsection (d) the following new
subsection:
``(e) Methods of Enrollment.--
``(1) Authorized methods.--Land may be enrolled in the
healthy forests reserve program in accordance with--
``(A) a 10-year cost-share agreement;
``(B) a 30-year easement; or
``(C)(i) a permanent easement; or
``(ii) in a State that imposes a maximum duration for
easements, an easement for the maximum duration allowed under
State law.
``(2) Limitation on use of cost-share agreements and
easements.--
``(A) In general.--Of the total amount of funds expended
under the program for a fiscal year to acquire easements and
enter into cost-share agreements described in paragraph (1)--
``(i) not more than 40 percent shall be used for cost-share
agreements described in paragraph (1)(A); and
``(ii) not more than 60 percent shall be used for easements
described in subparagraphs (B) and (C) of paragraph (1).
``(B) Repooling.--The Secretary may use any funds allocated
under clause (i) or (ii) of subparagraph (A) that are not
obligated by April 1 of the fiscal year for which the funds
are made available to carry out a different method of
enrollment during that fiscal year.
``(3) Acreage owned by indian tribes.--In the case of
acreage owned by an Indian tribe, the Secretary may enroll
acreage into the healthy forests reserve program through the
use of--
``(A) a 30-year contract (the value of which shall be
equivalent to the value of a 30-year easement);
``(B) a 10-year cost-share agreement; or
``(C) any combination of the options described in
subparagraphs (A) and (B).''.
(b) Financial Assistance.--Section 504(a) of the Healthy
Forests Restoration Act of 2003 (16 U.S.C. 6574(a)) is
amended by striking ``(a) Easements of Not More Than 99
Years'' and all that follows through ``502(f)(1)(C)'' and
inserting the following:
``(a) Permanent Easements.--In the case of land enrolled in
the healthy forests reserve program using a permanent
easement (or an easement described in section
502(f)(1)(C)(ii))''.
(c) Funding.--Section 508 of the Healthy Forests
Restoration Act of 2003 (16 U.S.C. 6578) is amended to read
as follows:
``SEC. 508. FUNDING.
``(a) In General.--Of the funds of the Commodity Credit
Corporation, the Secretary of Agriculture shall make
available $9,750,000 for each of fiscal years 2009 through
2012 to carry out this title.
``(b) Duration of Availability.--The funds made available
under subsection (a) shall remain available until
expended.''.
[[Page H4581]]
Subtitle D--Boundary Adjustments and Land Conveyance Provisions
SEC. 8301. GREEN MOUNTAIN NATIONAL FOREST BOUNDARY
ADJUSTMENT.
(a) In General.--The boundary of the Green Mountain
National Forest is modified to include the 13 designated
expansion units as generally depicted on the forest maps
entitled ``Green Mountain Expansion Area Map I'' and ``Green
Mountain Expansion Area Map II'' and dated February 20, 2002
(copies of which shall be on file and available for public
inspection in the Office of the Chief of the Forest Service,
Washington, District of Columbia), and more particularly
described according to the site specific maps and legal
descriptions on file in the office of the Forest Supervisor,
Green Mountain National Forest.
(b) Management.--Federally owned land delineated on the
maps acquired for National Forest purposes shall continue to
be managed in accordance with the laws (including
regulations) applicable to the National Forest System.
(c) Land and Water Conservation Fund.--For the purposes of
section 7 of the Land and Water Conservation Fund Act of 1965
(16 U.S.C. 460 l-9), the boundaries of the Green Mountain
National Forest, as adjusted by this section, shall be
considered to be the boundaries of the national forest as of
January 1, 1965.
SEC. 8302. LAND CONVEYANCES, CHIHUAHUAN DESERT NATURE PARK,
NEW MEXICO, AND GEORGE WASHINGTON NATIONAL
FOREST, VIRGINIA.
(a) Chihuahuan Desert Nature Park Conveyance.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, subject to valid existing rights and
subsection (b), the Secretary of Agriculture shall convey to
the Chihuahuan Desert Nature Park, Inc., a nonprofit
corporation in the State of New Mexico (in this section
referred to as the ``Nature Park''), by quitclaim deed and
for no consideration, all right, title, and interest of the
United States in and to the land described in paragraph (2)
(2) Description of land.--
(A) In general.--The parcel of land referred to in
paragraph (1) consists of the approximately 935.62 acres of
land in Dona Ana County, New Mexico, which is more
particularly described--
(i) as sections 17, 20, and 21 of T. 21 S., R. 2 E.,
N.M.P.M.; and
(ii) in an easement deed dated May 14, 1998, from the
Department of Agriculture to the Nature Park.
(B) Modifications.--The Secretary may modify the
description of the land under subparagraph (A) to--
(i) correct errors in the description; or
(ii) facilitate management of the land.
(b) Conditions.--The conveyance of land under subsection
(a) shall be subject to--
(1) the reservation by the United States of all mineral and
subsurface rights to the land, including any geothermal
resources;
(2) the condition that the Chihuahuan Desert Nature Park
Board pay any costs relating to the conveyance;
(3) any rights-of-way reserved by the Secretary;
(4) a covenant or restriction in the deed to the land
requiring that--
(A) the land may be used only for educational or scientific
purposes; and
(B) if the land is no longer used for the purposes
described in subparagraph (A), the land may, at the
discretion of the Secretary, revert to the United States in
accordance with subsection (c); and
(5) any other terms and conditions that the Secretary
determines to be appropriate.
(c) Reversion.--If the land conveyed under subsection (a)
is no longer used for the purposes described in subsection
(b)(4)(A), the land may, at the discretion of the Secretary,
revert to the United States. If the Secretary chooses to have
the land revert to the United States, the Secretary shall--
(1) determine whether the land is environmentally
contaminated, including contamination from hazardous wastes,
hazardous substances, pollutants, contaminants, petroleum, or
petroleum by-products; and
(2) if the Secretary determines that the land is
environmentally contaminated, the Nature Park, the successor
to the Nature Park, or any other person responsible for the
contamination shall be required to remediate the
contamination.
(d) Withdrawal.--All federally owned mineral and subsurface
rights to the land to be conveyed under subsection (a) are
withdrawn from--
(1) location, entry, and patent under the mining laws; and
(2) the operation of the mineral leasing laws, including
the geothermal leasing laws.
(e) Water Rights.--Nothing in subsection (a) authorizes the
conveyance of water rights to the Nature Park.
(f) George Washington National Forest Conveyance,
Virginia.--
(1) Conveyance required.--The Secretary of Agriculture
shall convey, without consideration, to the Central Advent
Christian Church of Alleghany County, Virginia (in this
subsection referred to as the ``recipient''), all right,
title, and interest of the United States in and to a parcel
of real property in the George Washington National Forest,
Alleghany County, Virginia, consisting of not more than 8
acres, including a cemetery encompassing approximately 6
acres designated as an area of special use for the recipient,
and depicted on the Forest Service map showing tract G-2032c
and dated August 20, 2002, and the Forest Service map showing
the area of special use and dated March 14, 2001.
(2) Condition of conveyance.--The conveyance under this
subsection shall be subject to the condition that the
recipient accept the real property described in paragraph (1)
in its condition at the time of the conveyance, commonly
known as conveyance ``as is''.
(3) Description of property.--The exact acreage and legal
description of the real property to be conveyed under this
subsection shall be determined by a survey satisfactory to
the Secretary. The cost of the survey shall be borne by the
recipient.
(4) Additional terms and conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyance under this subsection as the Secretary
considers appropriate to protect the interests of the United
States.
SEC. 8303. SALE AND EXCHANGE OF NATIONAL FOREST SYSTEM LAND,
VERMONT.
(a) Definitions.--In this section:
(1) Bromley.--The term ``Bromley'' means Bromley Mountain
Ski Resort, Inc.
(2) Map.--The term ``map'' means the map entitled
``Proposed Bromley Land Sale or Exchange'' and dated April 7,
2004.
(3) State.--The term ``State'' means the State of Vermont.
(b) Sale or Exchange of Green Mountain National Forest
Land.--
(1) In general.--The Secretary of Agriculture may, under
any terms and conditions that the Secretary may prescribe,
sell or exchange any right, title, and interest of the United
States in and to the parcels of National Forest System land
described in paragraph (2).
(2) Description of land.--The parcels of National Forest
System land referred to in paragraph (1) are the 5 parcels of
land in Bennington County in the State, as generally depicted
on the map.
(3) Map and legal descriptions.--
(A) In general.--The map shall be on file and available for
public inspection in--
(i) the office of the Chief of the Forest Service; and
(ii) the office of the Supervisor of the Green Mountain
National Forest.
(B) Modifications.--The Secretary may modify the map and
legal descriptions to--
(i) correct technical errors; or
(ii) facilitate the conveyance under paragraph (1).
(4) Consideration.--Consideration for the sale or exchange
of land described in paragraph (2)--
(A) shall be equal to an amount that is not less than the
fair market value of the land sold or exchanged; and
(B) may be in the form of cash, land, or a combination of
cash and land.
(5) Appraisals.--Any appraisal carried out to facilitate
the sale or exchange of land under paragraph (1) shall
conform with the Uniform Appraisal Standards for Federal Land
Acquisitions.
(6) Methods of sale.--
(A) Conveyance to bromley.--
(i) In general.--Before soliciting offers under
subparagraph (B), the Secretary shall offer to convey to
Bromley the land described in paragraph (2).
(ii) Contract deadline.--If Bromley accepts the offer under
clause (i), the Secretary and Bromley shall have not more
than 180 days after the date on which any environmental
analyses with respect to the land are completed to enter into
a contract for the sale or exchange of the land.
(B) Public or private sale.--If the Secretary and Bromley
do not enter into a contract for the sale or exchange of the
land by the date specified in subparagraph (A)(ii), the
Secretary may sell or exchange the land at public or private
sale (including auction), in accordance with such terms,
conditions, and procedures as the Secretary determines to be
in the public interest.
(C) Rejection of offers.--The Secretary may reject any
offer received under this paragraph if the Secretary
determines that the offer is not adequate or is not in the
public interest.
(D) Brokers.--In any sale or exchange of land under this
subsection, the Secretary may--
(i) use a real estate broker or other third party; and
(ii) pay the real estate broker or third party a commission
in an amount comparable to the amounts of commission
generally paid for real estate transactions in the area.
(7) Cash equalization.--Notwithstanding section 206(b) of
the Federal Land Policy and Management Act of 1976 (43 U.S.C.
1716(b)), the Secretary may accept a cash equalization
payment in excess of 25 percent of the value of any Federal
land exchanged under this section.
(c) Disposition of Proceeds.--
(1) In general.--The Secretary shall deposit the net
proceeds from a sale or exchange under this section in the
fund established under Public Law 90-171 (16 U.S.C. 484a)
(commonly known as the ``Sisk Act'').
(2) Use.--Amounts deposited under paragraph (1) shall be
available to the Secretary until expended, without further
appropriation, for--
(A) the location and relocation of the Appalachian National
Scenic Trail and the Long National Recreation Trail in the
State;
(B) the acquisition of land and interests in land by the
Secretary for National Forest System purposes within the
boundary of the Green Mountain National Forest, including
[[Page H4582]]
land for and adjacent to the Appalachian National Scenic
Trail and the Long National Recreation Trail;
(C) the acquisition of wetland or an interest in wetland
within the boundary of the Green Mountain National Forest to
offset the loss of wetland from the parcels sold or
exchanged; and
(D) the payment of direct administrative costs incurred in
carrying out this section.
(3) Limitation.--Amounts deposited under paragraph (1)
shall not--
(A) be paid or distributed to the State or counties or
towns in the State under any provision of law; or
(B) be considered to be money received from units of the
National Forest System for purposes of--
(i) the Act of May 23, 1908 (16 U.S.C. 500); or
(ii) the Act of March 4, 1913 (16 U.S.C. 501).
(4) Prohibition of transfer or reprogramming.--Amounts
deposited under paragraph (1) shall not be subject to
transfer or reprogramming for wildfire management or any
other emergency purposes.
(d) Acquisition of Land.--The Secretary may acquire, using
funds made available under subsection (c) or otherwise made
available for acquisition, land or an interest in land for
National Forest System purposes within the boundary of the
Green Mountain National Forest.
(e) Exemption From Certain Laws.--Subtitle I of title 40,
United States Code, shall not apply to any sale or exchange
of National Forest System land under this section.
Subtitle E--Miscellaneous Provisions
SEC. 8401. QUALIFYING TIMBER CONTRACT OPTIONS.
(a) Definitions.--In this section:
(1) Authorized producer price index.--The term ``authorized
Producer Price Index'' includes--
(A) the softwood commodity index (code number WPU 0811);
(B) the hardwood commodity index (code number WPU 0812);
(C) the wood chip index (code number PCU 3211133211135);
and
(D) any other subsequent comparable index, as established
by the Bureau of Labor Statistics of the Department of Labor
and utilized by the Secretary of Agriculture.
(2) Qualifying contract.--The term ``qualifying contract''
means a contract for the sale of timber on National Forest
System land--
(A) that was awarded during the period beginning on July 1,
2004, and ending on December 31, 2006;
(B) for which there is unharvested volume remaining;
(C) for which, not later than 90 days after the date of
enactment of this Act, the timber purchaser makes a written
request to the Secretary for one or more of the options
described in subsection (b);
(D) that is not a salvage sale;
(E) for which the Secretary determines there is not an
urgent need to harvest due to deteriorating timber conditions
that developed after the award of the contract; and
(F) that is not in breach or in default.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture, acting through the Chief of the Forest
Service.
(b) Options for Qualifying Contracts.--
(1) Cancellation or rate redetermination.--Notwithstanding
any other provision of law, if the rate at which a qualifying
contract would be advertised as of the date of enactment of
this Act is at least 50 percent less than the sum of the
original bid rates for all of the species of timber that are
the subject of the qualifying contract, the Secretary may, at
the sole discretion of the Secretary--
(A) cancel the qualifying contract if the timber
purchaser--
(i) pays 30 percent of the total value of the timber
remaining in the qualifying contract based on bid rates;
(ii) completes each contractual obligation (including the
removal of downed timber, the completion of road work, and
the completion of erosion control work) of the timber
purchaser with respect to each unit on which harvest has
begun to a logical stopping point, as determined by the
Secretary after consultation with the timber purchaser; and
(iii) terminates its rights under the qualifying contract;
or
(B) modify the qualifying contract to redetermine the
current contract rate of the qualifying contract to equal the
sum obtained by adding--
(i) 25 percent of the bid premium on the qualifying
contract; and
(ii) the rate at which the qualifying contract would be
advertised as of the date of enactment of this Act.
(2) Substitution of index.--
(A) Substitution.--Notwithstanding any other provision of
law, the Secretary may, at the sole discretion of the
Secretary, substitute the Producer Price Index specified in
the qualifying contract of a timber purchaser if the timber
purchaser identifies--
(i) the products the timber purchaser intends to produce
from the timber harvested under the qualifying contract; and
(ii) a substitute index from an authorized Producer Price
Index that more accurately represents the predominant product
identified in clause (i) for which there is an index.
(B) Rate redetermination following substitution of index.--
If the Secretary substitutes the Producer Price Index of a
qualifying contract under subparagraph (A), the Secretary
may, at the sole discretion of the Secretary, modify the
qualifying contract to provide for--
(i) an emergency rate redetermination under the terms of
the contract; or
(ii) a rate redetermination under paragraph (1)(B).
(C) Limitation on market-related contract term addition;
periodic payments.--Notwithstanding any other provision of
law, if the Secretary substitutes the Producer Price Index of
a qualifying contract under subparagraph (A), the Secretary
may, at the sole discretion of the Secretary, modify the
qualifying contract--
(i) to adjust the term in accordance with the market-
related contract term addition provision in the qualifying
contract and section 223.52 of title 36, Code of Federal
Regulations, as in effect on the date of the adjustment, but
only if the drastic reduction criteria in such section are
met for 2 or more consecutive calendar year quarters
beginning with the calendar quarter in which the Secretary
substitutes the Producer Price Index under subparagraph (A);
and
(ii) to adjust the periodic payments required under the
contract in accordance with applicable law and policies.
(3) Contracts using hardwood lumber index.--With respect to
a qualifying contract using the hardwood commodity index
referred to in subsection (a)(1)(B) for which the Secretary
does not substitute the Producer Price Index under paragraph
(2), the Secretary may, at the sole discretion of the
Secretary--
(A) extend the contract term for a 1-year period beginning
on the current contract termination date; and
(B) adjust the periodic payments required under the
contract in accordance with applicable law and policies.
(c) Extension of Market-Related Contract Term Addition Time
Limit for Certain Contracts.--Notwithstanding any other
provision of law, upon the written request of a timber
purchaser, the Secretary may, at the sole discretion of the
Secretary, modify a timber sale contract (including a
qualifying contract) awarded to the purchaser before January
1, 2007, to adjust the term of the contract in accordance
with the market-related contract term addition provision in
the contract and section 223.52 of title 36, Code of Federal
Regulations, as in effect on the date of the modification,
except that the Secretary may add no more than 4 years to the
original contract length.
(d) Effect of Options.--
(1) No surrender of claims.--Operation of this section
shall not have the effect of surrendering any claim by the
United States against any timber purchaser that arose--
(A) under a qualifying contract before the date on which
the Secretary cancels the contract or redetermines the rate
under subsection (b)(1), substitutes a Producer Price Index
under subsection (b)(2), or modifies the contract under
subsection (b)(3); or
(B) under a timber sale contract, including a qualifying
contract, before the date on which the Secretary adjusts the
contract term under subsection (c).
(2) Release of liability.--In the written request for any
option provided under subsections (b) and (c), a timber
purchaser shall release the United States from all liability,
including further consideration or compensation, resulting
from--
(A) the cancellation of a qualifying contract of the
purchaser or rate redetermination under subsection (b)(1),
the substitution of a Producer Price Index under subsection
(b)(2), the modification of the contract under subsection
(b)(3) or a determination by the Secretary not to provide the
cancellation, redetermination, substitution, or modification;
or
(B) the modification of the term of a timber sale contract
(including a qualifying contract) of the purchaser under
subsection (c) or a determination by the Secretary not to
provide the modification.
(3) Limitation.--Subject to subsection (b)(1)(A), the
cancellation of a qualifying contract by the Secretary under
subsection (b)(1) shall release the timber purchaser from
further obligation under the canceled contract.
SEC. 8402. HISPANIC-SERVING INSTITUTION AGRICULTURAL LAND
NATIONAL RESOURCES LEADERSHIP PROGRAM.
(a) Definition of Hispanic-Serving Institution.--In this
section, the term ``Hispanic-serving institution'' has the
meaning given that term in section 502(a)(5) of the Higher
Education Act of 1965 (20 U.S.C. 1101a(a)(5)).
(b) Grant Authority.--The Secretary of Agriculture may make
grants, on a competitive basis, to Hispanic-serving
institutions for the purpose of establishing an undergraduate
scholarship program to assist in the recruitment, retention,
and training of Hispanics and other under-represented groups
in forestry and related fields.
(c) Use of Grant Funds.--Grants made under this section
shall be used to recruit, retain, train, and develop
professionals to work in forestry and related fields with
Federal agencies, such as the Forest Service, State agencies,
and private-sector entities.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for each of fiscal years
2008 through 2012 such sums as may be necessary to carry out
this section.
TITLE IX--ENERGY
SEC. 9001. ENERGY.
(a) In General.--Title IX of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8101 et seq.) is amended to
read as follows:
[[Page H4583]]
``TITLE IX--ENERGY
``SEC. 9001. DEFINITIONS.
``Except as otherwise provided, in this title:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Environmental Protection Agency.
``(2) Advisory committee.--The term `Advisory Committee'
means the Biomass Research and Development Technical Advisory
Committee established by section 9008(d)(1).
``(3) Advanced biofuel.--
``(A) In general.--The term `advanced biofuel' means fuel
derived from renewable biomass other than corn kernel starch.
``(B) Inclusions.--Subject to subparagraph (A), the term
`advanced biofuel' includes--
``(i) biofuel derived from cellulose, hemicellulose, or
lignin;
``(ii) biofuel derived from sugar and starch (other than
ethanol derived from corn kernel starch);
``(iii) biofuel derived from waste material, including crop
residue, other vegetative waste material, animal waste, food
waste, and yard waste;
``(iv) diesel-equivalent fuel derived from renewable
biomass, including vegetable oil and animal fat;
``(v) biogas (including landfill gas and sewage waste
treatment gas) produced through the conversion of organic
matter from renewable biomass;
``(vi) butanol or other alcohols produced through the
conversion of organic matter from renewable biomass; and
``(vii) other fuel derived from cellulosic biomass.
``(4) Biobased product.--The term `biobased product' means
a product determined by the Secretary to be a commercial or
industrial product (other than food or feed) that is--
``(A) composed, in whole or in significant part, of
biological products, including renewable domestic
agricultural materials and forestry materials; or
``(B) an intermediate ingredient or feedstock.
``(5) Biofuel.--The term `biofuel' means a fuel derived
from renewable biomass.
``(6) Biomass conversion facility.--The term `biomass
conversion facility' means a facility that converts or
proposes to convert renewable biomass into--
``(A) heat;
``(B) power;
``(C) biobased products; or
``(D) advanced biofuels.
``(7) Biorefinery.--The term `biorefinery' means a facility
(including equipment and processes) that--
``(A) converts renewable biomass into biofuels and biobased
products; and
``(B) may produce electricity.
``(8) Board.--The term `Board' means the Biomass Research
and Development Board established by section 9008(c).
``(9) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(10) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 102(a) of the Higher Education Act of 1965
(20 U.S.C. 1002(a)).
``(11) Intermediate ingredient or feedstock.--The term
`intermediate ingredient or feedstock' means a material or
compound made in whole or in significant part from biological
products, including renewable agricultural materials
(including plant, animal, and marine materials) or forestry
materials, that are subsequently used to make a more complex
compound or product.
``(12) Renewable biomass.--The term `renewable biomass'
means--
``(A) materials, pre-commercial thinnings, or invasive
species from National Forest System land and public lands (as
defined in section 103 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1702)) that--
``(i) are byproducts of preventive treatments that are
removed--
``(I) to reduce hazardous fuels;
``(II) to reduce or contain disease or insect infestation;
or
``(III) to restore ecosystem health;
``(ii) would not otherwise be used for higher-value
products; and
``(iii) are harvested in accordance with--
``(I) applicable law and land management plans; and
``(II) the requirements for--
``(aa) old-growth maintenance, restoration, and management
direction of paragraphs (2), (3), and (4) of subsection (e)
of section 102 of the Healthy Forests Restoration Act of 2003
(16 U.S.C. 6512); and
``(bb) large-tree retention of subsection (f) of that
section; or
``(B) any organic matter that is available on a renewable
or recurring basis from non-Federal land or land belonging to
an Indian or Indian tribe that is held in trust by the United
States or subject to a restriction against alienation imposed
by the United States, including--
``(i) renewable plant material, including--
``(I) feed grains;
``(II) other agricultural commodities;
``(III) other plants and trees; and
``(IV) algae; and
``(ii) waste material, including--
``(I) crop residue;
``(II) other vegetative waste material (including wood
waste and wood residues);
``(III) animal waste and byproducts (including fats, oils,
greases, and manure); and
``(IV) food waste and yard waste.
``(13) Renewable energy.--The term `renewable energy' means
energy derived from--
``(A) a wind, solar, renewable biomass, ocean (including
tidal, wave, current, and thermal), geothermal, or
hydroelectric source; or
``(B) hydrogen derived from renewable biomass or water
using an energy source described in subparagraph (A).
``(14) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``SEC. 9002. BIOBASED MARKETS PROGRAM.
``(a) Federal Procurement of Biobased Products.--
``(1) Definition of procuring agency.--In this subsection,
the term `procuring agency' means--
``(A) any Federal agency that is using Federal funds for
procurement; or
``(B) a person that is a party to a contract with any
Federal agency, with respect to work performed under such a
contract.
``(2) Procurement preference.--
``(A) In general.--
``(i) Procuring agency duties.--Except as provided in
clause (ii) and subparagraph (B), after the date specified in
applicable guidelines prepared pursuant to paragraph (3),
each procuring agency shall--
``(I) establish a procurement program, develop procurement
specifications, and procure biobased products identified
under the guidelines described in paragraph (3) in accordance
with this section; and
``(II) with respect to items described in the guidelines,
give a procurement preference to those items that--
``(aa) are composed of the highest percentage of biobased
products practicable; or
``(bb) comply with the regulations issued under section 103
of Public Law 100-556 (42 U.S.C. 6914b-1).
``(ii) Exception.--The requirements of clause (i)(I) to
establish a procurement program and develop procurement
specifications shall not apply to a person described in
paragraph (1)(B).
``(B) Flexibility.--Notwithstanding subparagraph (A), a
procuring agency may decide not to procure items described in
that subparagraph if the procuring agency determines that the
items--
``(i) are not reasonably available within a reasonable
period of time;
``(ii) fail to meet--
``(I) the performance standards set forth in the applicable
specifications; or
``(II) the reasonable performance standards of the
procuring agencies; or
``(iii) are available only at an unreasonable price.
``(C) Minimum requirements.--Each procurement program
required under this subsection shall, at a minimum--
``(i) be consistent with applicable provisions of Federal
procurement law;
``(ii) ensure that items composed of biobased products will
be purchased to the maximum extent practicable;
``(iii) include a component to promote the procurement
program;
``(iv) provide for an annual review and monitoring of the
effectiveness of the procurement program; and
``(v) adopt 1 of the 2 polices described in subparagraph
(D) or (E), or a policy substantially equivalent to either of
those policies.
``(D) Case-by-case policy.--
``(i) In general.--Subject to subparagraph (B) and except
as provided in clause (ii), a procuring agency adopting the
case-by-case policy shall award a contract to the vendor
offering an item composed of the highest percentage of
biobased products practicable.
``(ii) Exception.--Subject to subparagraph (B), an agency
adopting the policy described in clause (i) may make an award
to a vendor offering items with less than the maximum
biobased products content.
``(E) Minimum content standards.--Subject to subparagraph
(B), a procuring agency adopting the minimum content
standards policy shall establish minimum biobased products
content specifications for awarding contracts in a manner
that ensures that the biobased products content required is
consistent with this subsection.
``(F) Certification.--After the date specified in any
applicable guidelines prepared pursuant to paragraph (3),
contracting offices shall require that vendors certify that
the biobased products to be used in the performance of the
contract will comply with the applicable specifications or
other contractual requirements.
``(3) Guidelines.--
``(A) In general.--The Secretary, after consultation with
the Administrator, the Administrator of General Services, and
the Secretary of Commerce (acting through the Director of the
National Institute of Standards and Technology), shall
prepare, and from time to time revise, guidelines for the use
of procuring agencies in complying with the requirements of
this subsection.
``(B) Requirements.--The guidelines under this paragraph
shall--
``(i) designate those items (including finished products)
that are or can be produced with biobased products (including
biobased products for which there is only a single product or
manufacturer in the category) that will be subject to the
preference described in paragraph (2);
``(ii) designate those intermediate ingredients and
feedstocks that are or can be used to produce items that will
be subject to the preference described in paragraph (2);
[[Page H4584]]
``(iii) automatically designate items composed of
intermediate ingredients and feedstocks designated under
clause (ii), if the content of the designated intermediate
ingredients and feedstocks exceeds 50 percent of the item
(unless the Secretary determines a different composition
percentage is appropriate);
``(iv) set forth recommended practices with respect to the
procurement of biobased products and items containing such
materials;
``(v) provide information as to the availability, relative
price, performance, and environmental and public health
benefits of such materials and items; and
``(vi) take effect on the date established in the
guidelines, which may not exceed 1 year after publication.
``(C) Information provided.--Information provided pursuant
to subparagraph (B)(v) with respect to a material or item
shall be considered to be provided for another item made with
the same material or item.
``(D) Prohibition.--Guidelines issued under this paragraph
may not require a manufacturer or vendor of biobased
products, as a condition of the purchase of biobased products
from the manufacturer or vendor, to provide to procuring
agencies more data than would be required to be provided by
other manufacturers or vendors offering products for sale to
a procuring agency, other than data confirming the biobased
content of a product.
``(E) Qualifying purchases.--The guidelines shall apply
with respect to any purchase or acquisition of a procurement
item for which--
``(i) the purchase price of the item exceeds $10,000; or
``(ii) the quantity of the items or of functionally-
equivalent items purchased or acquired during the preceding
fiscal year was at least $10,000.
``(4) Administration.--
``(A) Office of federal procurement policy.--The Office of
Federal Procurement Policy, in cooperation with the
Secretary, shall--
``(i) coordinate the implementation of this subsection with
other policies for Federal procurement;
``(ii) annually collect the information required to be
reported under subparagraph (B) and make the information
publicly available;
``(iii) take a leading role in informing Federal agencies
concerning, and promoting the adoption of and compliance
with, procurement requirements for biobased products by
Federal agencies; and
``(iv) not less than once every 2 years, submit to Congress
a report that--
``(I) describes the progress made in carrying out this
subsection; and
``(II) contains a summary of the information reported
pursuant to subparagraph (B).
``(B) Other agencies.--To assist the Office of Federal
Procurement Policy in carrying out subparagraph (A)--
``(i) each procuring agency shall submit each year to the
Office of Federal Procurement Policy, to the maximum extent
practicable, information concerning--
``(I) actions taken to implement paragraph (2);
``(II) the results of the annual review and monitoring
program established under paragraph (2)(C)(iv);
``(III) the number and dollar value of contracts entered
into during the year that include the direct procurement of
biobased products;
``(IV) the number of service and construction (including
renovations) contracts entered into during the year that
include language on the use of biobased products; and
``(V) the types and dollar value of biobased products
actually used by contractors in carrying out service and
construction (including renovations) contracts during the
previous year; and
``(ii) the General Services Administration and the Defense
Logistics Agency shall submit each year to the Office of
Federal Procurement Policy information concerning, to the
maximum extent practicable, the types and dollar value of
biobased products purchased by procuring agencies.
``(C) Procurement subject to other law.--Any procurement by
any Federal agency that is subject to regulations of the
Administrator under section 6002 of the Solid Waste Disposal
Act (42 U.S.C. 6962) shall not be subject to the requirements
of this section to the extent that the requirements are
inconsistent with the regulations.
``(b) Labeling.--
``(1) In general.--The Secretary, in consultation with the
Administrator, shall establish a voluntary program under
which the Secretary authorizes producers of biobased products
to use the label `USDA Certified Biobased Product'.
``(2) Eligibility criteria.--
``(A) Criteria.--
``(i) In general.--Not later than 90 days after the date of
the enactment of the Food, Conservation, and Energy Act of
2008 and except as provided in clause (ii), the Secretary, in
consultation with the Administrator and representatives from
small and large businesses, academia, other Federal agencies,
and such other persons as the Secretary considers
appropriate, shall issue criteria (as of the date of
enactment of that Act) for determining which products may
qualify to receive the label under paragraph (1).
``(ii) Exception.--Clause (i) shall not apply to final
criteria that have been issued (as of the date of enactment
of that Act) by the Secretary.
``(B) Requirements.--Criteria issued under subparagraph (A)
shall--
``(i) encourage the purchase of products with the maximum
biobased content;
``(ii) provide that the Secretary may designate as biobased
for the purposes of the voluntary program established under
this subsection finished products that contain significant
portions of biobased materials or components; and
``(iii) to the maximum extent practicable, be consistent
with the guidelines issued under subsection (a)(3).
``(3) Use of label.--The Secretary shall ensure that the
label referred to in paragraph (1) is used only on products
that meet the criteria issued pursuant to paragraph (2).
``(c) Recognition.--The Secretary shall--
``(1) establish a program to recognize Federal agencies and
private entities that use a substantial amount of biobased
products; and
``(2) encourage Federal agencies to establish incentives
programs to recognize Federal employees or contractors that
make exceptional contributions to the expanded use of
biobased products.
``(d) Limitation.--Nothing in this section shall apply to
the procurement of motor vehicle fuels, heating oil, or
electricity.
``(e) Inclusion.--Effective beginning on the date that is
90 days after the date of enactment of the Food,
Conservation, and Energy Act of 2008, the Architect of the
Capitol, the Sergeant at Arms of the Senate, and the Chief
Administrative Officer of the House of Representatives shall
consider the biobased product designations made under this
section in making procurement decisions for the Capitol
Complex.
``(f) National Testing Center Registry.--The Secretary
shall establish a national registry of testing centers for
biobased products that will serve biobased product
manufacturers.
``(g) Reports.--
``(1) In general.--Not later than 180 days after the date
of enactment of the Food, Conservation, and Energy Act of
2008 and each year thereafter, the Secretary shall submit to
Congress a report on the implementation of this section.
``(2) Contents.--The report shall include--
``(A) a comprehensive management plan that establishes
tasks, milestones, and timelines, organizational roles and
responsibilities, and funding allocations for fully
implementing this section; and
``(B) information on the status of implementation of--
``(i) item designations (including designation of
intermediate ingredients and feedstocks); and
``(ii) the voluntary labeling program established under
subsection (b).
``(h) Funding.--
``(1) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to provide
mandatory funding for biobased products testing and labeling
as required to carry out this section--
``(A) $1,000,000 for fiscal year 2008; and
``(B) $2,000,000 for each of fiscal years 2009 through
2012.
``(2) Discretionary funding.--In addition to any other
funds made available to carry out this section, there is
authorized to be appropriated to carry out this section
$2,000,000 for each of fiscal years 2009 through 2012.
``SEC. 9003. BIOREFINERY ASSISTANCE.
``(a) Purpose.--The purpose of this section is to assist in
the development of new and emerging technologies for the
development of advanced biofuels, so as to--
``(1) increase the energy independence of the United
States;
``(2) promote resource conservation, public health, and the
environment;
``(3) diversify markets for agricultural and forestry
products and agriculture waste material; and
``(4) create jobs and enhance the economic development of
the rural economy.
``(b) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means an
individual, entity, Indian tribe, or unit of State or local
government, including a corporation, farm cooperative, farmer
cooperative organization, association of agricultural
producers, National Laboratory, institution of higher
education, rural electric cooperative, public power entity,
or consortium of any of those entities.
``(2) Eligible technology.--The term `eligible technology'
means, as determined by the Secretary--
``(A) a technology that is being adopted in a viable
commercial-scale operation of a biorefinery that produces an
advanced biofuel; and
``(B) a technology not described in subparagraph (A) that
has been demonstrated to have technical and economic
potential for commercial application in a biorefinery that
produces an advanced biofuel.
``(c) Assistance.--The Secretary shall make available to
eligible entities--
``(1) grants to assist in paying the costs of the
development and construction of demonstration-scale
biorefineries to demonstrate the commercial viability of 1 or
more processes for converting renewable biomass to advanced
biofuels; and
``(2) guarantees for loans made to fund the development,
construction, and retrofitting of commercial-scale
biorefineries using eligible technology.
``(d) Grants.--
``(1) Competitive basis.--The Secretary shall award grants
under subsection (c)(1) on a competitive basis.
[[Page H4585]]
``(2) Selection criteria.--
``(A) In general.--In approving grant applications, the
Secretary shall establish a priority scoring system that
assigns priority scores to each application and only approve
applications that exceed a specified minimum, as determined
by the Secretary.
``(B) Feasibility.--In approving a grant application, the
Secretary shall determine the technical and economic
feasibility of the project based on a feasibility study of
the project described in the application conducted by an
independent third party.
``(C) Scoring system.--In determining the priority scoring
system, the Secretary shall consider--
``(i) the potential market for the advanced biofuel and the
byproducts produced;
``(ii) the level of financial participation by the
applicant, including support from non-Federal and private
sources;
``(iii) whether the applicant is proposing to use a
feedstock not previously used in the production of advanced
biofuels;
``(iv) whether the applicant is proposing to work with
producer associations or cooperatives;
``(v) whether the applicant has established that the
adoption of the process proposed in the application will have
a positive impact on resource conservation, public health,
and the environment;
``(vi) the potential for rural economic development;
``(vii) whether the area in which the applicant proposes to
locate the biorefinery has other similar facilities;
``(viii) whether the project can be replicated; and
``(ix) scalability for commercial use.
``(3) Cost sharing.--
``(A) Limits.--The amount of a grant awarded for
development and construction of a biorefinery under
subsection (c)(1) shall not exceed an amount equal to 30
percent of the cost of the project.
``(B) Form of grantee share.--
``(i) In general.--The grantee share of the cost of a
project may be made in the form of cash or material.
``(ii) Limitation.--The amount of the grantee share that is
made in the form of material shall not exceed 15 percent of
the amount of the grantee share determined under subparagraph
(A).
``(e) Loan Guarantees.--
``(1) Selection criteria.--
``(A) In general.--In approving loan guarantee
applications, the Secretary shall establish a priority
scoring system that assigns priority scores to each
application and only approve applications that exceed a
specified minimum, as determined by the Secretary.
``(B) Feasibility.--In approving a loan guarantee
application, the Secretary shall determine the technical and
economic feasibility of the project based on a feasibility
study of the project described in the application conducted
by an independent third party.
``(C) Scoring system.--In determining the priority scoring
system for loan guarantees under subsection (c)(2), the
Secretary shall consider--
``(i) whether the applicant has established a market for
the advanced biofuel and the byproducts produced;
``(ii) whether the area in which the applicant proposes to
place the biorefinery has other similar facilities;
``(iii) whether the applicant is proposing to use a
feedstock not previously used in the production of advanced
biofuels;
``(iv) whether the applicant is proposing to work with
producer associations or cooperatives;
``(v) the level of financial participation by the
applicant, including support from non-Federal and private
sources;
``(vi) whether the applicant has established that the
adoption of the process proposed in the application will have
a positive impact on resource conservation, public health,
and the environment;
``(vii) whether the applicant can establish that if
adopted, the biofuels production technology proposed in the
application will not have any significant negative impacts on
existing manufacturing plants or other facilities that use
similar feedstocks;
``(viii) the potential for rural economic development;
``(ix) the level of local ownership proposed in the
application; and
``(x) whether the project can be replicated.
``(2) Limitations.--
``(A) Maximum amount of loan guaranteed.--The principal
amount of a loan guaranteed under subsection (c)(2) may not
exceed $250,000,000.
``(B) Maximum percentage of loan guaranteed.--
``(i) In general.--Except as otherwise provided in this
subparagraph, a loan guaranteed under subsection (c)(2) shall
be in an amount not to exceed 80 percent of the project
costs, as determined by the Secretary.
``(ii) Other direct federal funding.--The amount of a loan
guaranteed for a project under subsection (c)(2) shall be
reduced by the amount of other direct Federal funding that
the eligible entity receives for the same project.
``(iii) Authority to guarantee the loan.--The Secretary may
guarantee up to 90 percent of the principal and interest due
on a loan guaranteed under subsection (c)(2).
``(C) Loan guarantee fund distribution.--Of the funds made
available for loan guarantees for a fiscal year under
subsection (h), 50 percent of the funds shall be reserved for
obligation during the second half of the fiscal year.
``(f) Consultation.--In carrying out this section, the
Secretary shall consult with the Secretary of Energy.
``(g) Condition on Provision of Assistance.--
``(1) In general.--As a condition of receiving a grant or
loan guarantee under this section, an eligible entity shall
ensure that all laborers and mechanics employed by
contractors or subcontractors in the performance of
construction work financed, in whole or in part, with the
grant or loan guarantee, as the case may be, shall be paid
wages at rates not less than those prevailing on similar
construction in the locality, as determined by the Secretary
of Labor in accordance with sections 3141 through 3144, 3146,
and 3147 of title 40, United States Code.
``(2) Authority and functions.--The Secretary of Labor
shall have, with respect to the labor standards described in
paragraph (1), the authority and functions set forth in
Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App) and
section 3145 of title 40, United States Code.
``(h) Funding.--
``(1) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use for the cost of
loan guarantees under this section, to remain available until
expended--
``(A) $75,000,000 for fiscal year 2009; and
``(B) $245,000,000 for fiscal year 2010.
``(2) Discretionary funding.--In addition to any other
funds made available to carry out this section, there is
authorized to be appropriated to carry out this section
$150,000,000 for each of fiscal years 2009 through 2012.
``SEC. 9004. REPOWERING ASSISTANCE.
``(a) In General.--The Secretary shall carry out a program
to encourage biorefineries in existence on the date of
enactment of the Food, Conservation, and Energy Act of 2008
to replace fossil fuels used to produce heat or power to
operate the biorefineries by making payments for--
``(1) the installation of new systems that use renewable
biomass; or
``(2) the new production of energy from renewable biomass.
``(b) Payments.--
``(1) In general.--The Secretary may make payments under
this section to any biorefinery that meets the requirements
of this section for a period determined by the Secretary.
``(2) Amount.--The Secretary shall determine the amount of
payments to be made under this section to a biorefinery after
considering--
``(A) the quantity of fossil fuels a renewable biomass
system is replacing;
``(B) the percentage reduction in fossil fuel used by the
biorefinery that will result from the installation of the
renewable biomass system; and
``(C) the cost and cost effectiveness of the renewable
biomass system.
``(c) Eligibility.--To be eligible to receive a payment
under this section, a biorefinery shall demonstrate to the
Secretary that the renewable biomass system of the
biorefinery is feasible based on an independent feasibility
study that takes into account the economic, technical and
environmental aspects of the system.
``(d) Funding.--
``(1) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to make payments
under this section $35,000,000 for fiscal year 2009, to
remain available until expended.
``(2) Discretionary funding.--In addition to any other
funds made available to carry out this section, there is
authorized to be appropriated to carry out this section
$15,000,000 for each of fiscal years 2009 through 2012.
``SEC. 9005. BIOENERGY PROGRAM FOR ADVANCED BIOFUELS.
``(a) Definition of Eligible Producer.--In this section,
the term `eligible producer' means a producer of advanced
biofuels.
``(b) Payments.--The Secretary shall make payments to
eligible producers to support and ensure an expanding
production of advanced biofuels.
``(c) Contracts.--To receive a payment, an eligible
producer shall--
``(1) enter into a contract with the Secretary for
production of advanced biofuels; and
``(2) submit to the Secretary such records as the Secretary
may require as evidence of the production of advanced
biofuels.
``(d) Basis for Payments.--The Secretary shall make
payments under this section to eligible producers based on--
``(1) the quantity and duration of production by the
eligible producer of an advanced biofuel;
``(2) the net nonrenewable energy content of the advanced
biofuel, if sufficient data is available, as determined by
the Secretary; and
``(3) other appropriate factors, as determined by the
Secretary.
``(e) Equitable Distribution.--The Secretary may limit the
amount of payments that may be received by a single eligible
producer under this section in order to distribute the total
amount of funding available in an equitable manner.
``(f) Other Requirements.--To receive a payment under this
section, an eligible producer shall meet any other
requirements of
[[Page H4586]]
Federal and State law (including regulations) applicable to
the production of advanced biofuels.
``(g) Funding.--
``(1) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out this
section, to remain available until expended--
``(A) $55,000,000 for fiscal year 2009;
``(B) $55,000,000 for fiscal year 2010;
``(C) $85,000,000 for fiscal year 2011; and
``(D) $105,000,000 for fiscal year 2012.
``(2) Discretionary funding.--In addition to any other
funds made available to carry out this section, there is
authorized to be appropriated to carry out this section
$25,000,000 for each of fiscal years 2009 through 2012.
``(3) Limitation.--Of the funds provided for each fiscal
year, not more than 5 percent of the funds shall be made
available to eligible producers for production at facilities
with a total refining capacity exceeding 150,000,000 gallons
per year.
``SEC. 9006. BIODIESEL FUEL EDUCATION PROGRAM.
``(a) Establishment.--The Secretary shall, under such terms
and conditions as the Secretary determines to be appropriate,
make competitive grants to eligible entities to educate
governmental and private entities that operate vehicle
fleets, other interested entities (as determined by the
Secretary), and the public about the benefits of biodiesel
fuel use.
``(b) Eligible Entities.--To receive a grant under
subsection (b), an entity shall--
``(1) be a nonprofit organization or institution of higher
education;
``(2) have demonstrated knowledge of biodiesel fuel
production, use, or distribution; and
``(3) have demonstrated the ability to conduct educational
and technical support programs.
``(c) Consultation.--In carrying out this section, the
Secretary shall consult with the Secretary of Energy.
``(d) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this
section $1,000,000 for each of fiscal years 2008 through
2012.
``SEC. 9007. RURAL ENERGY FOR AMERICA PROGRAM.
``(a) Establishment.--The Secretary, in consultation with
the Secretary of Energy, shall establish a Rural Energy for
America Program to promote energy efficiency and renewable
energy development for agricultural producers and rural small
businesses through--
``(1) grants for energy audits and renewable energy
development assistance; and
``(2) financial assistance for energy efficiency
improvements and renewable energy systems.
``(b) Energy Audits and Renewable Energy Development
Assistance.--
``(1) In general.--The Secretary shall make competitive
grants to eligible entities to provide assistance to
agricultural producers and rural small businesses--
``(A) to become more energy efficient; and
``(B) to use renewable energy technologies and resources.
``(2) Eligible entities.--An eligible entity under this
subsection is--
``(A) a unit of State, tribal, or local government;
``(B) a land-grant college or university or other
institution of higher education;
``(C) a rural electric cooperative or public power entity;
and
``(D) any other similar entity, as determined by the
Secretary.
``(3) Selection criteria.--In reviewing applications of
eligible entities to receive grants under paragraph (1), the
Secretary shall consider--
``(A) the ability and expertise of the eligible entity in
providing professional energy audits and renewable energy
assessments;
``(B) the geographic scope of the program proposed by the
eligible entity in relation to the identified need;
``(C) the number of agricultural producers and rural small
businesses to be assisted by the program;
``(D) the potential of the proposed program to produce
energy savings and environmental benefits;
``(E) the plan of the eligible entity for performing
outreach and providing information and assistance to
agricultural producers and rural small businesses on the
benefits of energy efficiency and renewable energy
development; and
``(F) the ability of the eligible entity to leverage other
sources of funding.
``(4) Use of grant funds.--A recipient of a grant under
paragraph (1) shall use the grant funds to assist
agricultural producers and rural small businesses by--
``(A) conducting and promoting energy audits; and
``(B) providing recommendations and information on how--
``(i) to improve the energy efficiency of the operations of
the agricultural producers and rural small businesses; and
``(ii) to use renewable energy technologies and resources
in the operations.
``(5) Limitation.--Grant recipients may not use more than 5
percent of a grant for administrative expenses.
``(6) Cost sharing.--A recipient of a grant under paragraph
(1) that conducts an energy audit for an agricultural
producer or rural small business under paragraph (4) shall
require that, as a condition of the energy audit, the
agricultural producer or rural small business pay at least 25
percent of the cost of the energy audit, which shall be
retained by the eligible entity for the cost of the energy
audit.
``(c) Financial Assistance for Energy Efficiency
Improvements and Renewable Energy Systems.--
``(1) In general.--In addition to any similar authority,
the Secretary shall provide loan guarantees and grants to
agricultural producers and rural small businesses--
``(A) to purchase renewable energy systems, including
systems that may be used to produce and sell electricity; and
``(B) to make energy efficiency improvements.
``(2) Award considerations.--In determining the amount of a
loan guarantee or grant provided under this section, the
Secretary shall take into consideration, as applicable--
``(A) the type of renewable energy system to be purchased;
``(B) the estimated quantity of energy to be generated by
the renewable energy system;
``(C) the expected environmental benefits of the renewable
energy system;
``(D) the quantity of energy savings expected to be derived
from the activity, as demonstrated by an energy audit;
``(E) the estimated period of time for the energy savings
generated by the activity to equal the cost of the activity;
``(F) the expected energy efficiency of the renewable
energy system; and
``(G) other appropriate factors.
``(3) Feasibility studies.--
``(A) In general.--The Secretary may provide assistance in
the form of grants to an agricultural producer or rural small
business to conduct a feasibility study for a project for
which assistance may be provided under this subsection.
``(B) Limitation.--The Secretary shall use not more than 10
percent of the funds made available to carry out this
subsection to provide assistance described in subparagraph
(A).
``(C) Avoidance of duplicative assistance.--An entity shall
be ineligible to receive assistance to carry out a
feasibility study for a project under this paragraph if the
entity has received other Federal or State assistance for a
feasibility study for the project.
``(4) Limits.--
``(A) Grants.--The amount of a grant under this subsection
shall not exceed 25 percent of the cost of the activity
carried out using funds from the grant.
``(B) Maximum amount of loan guarantees.--The amount of a
loan guaranteed under this subsection shall not exceed
$25,000,000.
``(C) Maximum amount of combined grant and loan
guarantee.--The combined amount of a grant and loan
guaranteed under this subsection shall not exceed 75 percent
of the cost of the activity funded under this subsection.
``(d) Outreach.--The Secretary shall ensure, to the maximum
extent practicable, that adequate outreach relating to this
section is being conducted at the State and local levels.
``(e) Lower-Cost Activities.--
``(1) Limitation on use of funds.--Except as provided in
paragraph (2), the Secretary shall use not less than 20
percent of the funds made available under subsection (g) to
provide grants of $20,000 or less.
``(2) Exception.--Effective beginning on June 30 of each
fiscal year, paragraph (1) shall not apply to funds made
available under subsection (g) for the fiscal year.
``(f) Report.--Not later than 4 years after the date of
enactment of the Food, Conservation, and Energy Act of 2008,
the Secretary shall submit to Congress a report on the
implementation of this section, including the outcomes
achieved by projects funded under this section.
``(g) Funding.--
``(1) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out this
section, to remain available until expended--
``(A) $55,000,000 for fiscal year 2009;
``(B) $60,000,000 for fiscal year 2010;
``(C) $70,000,000 for fiscal year 2011; and
``(D) $70,000,000 for fiscal year 2012.
``(2) Audit and technical assistance funding.--
``(A) In general.--Subject to subparagraph (B), of the
funds made available for each fiscal year under paragraph
(1), 4 percent shall be available to carry out subsection
(b).
``(B) Other use.--Funds not obligated under subparagraph
(A) by April 1 of each fiscal year to carry out subsection
(b) shall become available to carry out subsection (c).
``(3) Discretionary funding.--In addition to any other
funds made available to carry out this section, there is
authorized to be appropriated to carry out this section
$25,000,000 for each of fiscal years 2009 through 2012.
``SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT.
``(a) Definitions.--In this section:
``(1) Biobased product.--The term `biobased product'
means--
``(A) an industrial product (including chemicals,
materials, and polymers) produced from biomass; or
``(B) a commercial or industrial product (including animal
feed and electric power) derived in connection with the
conversion of biomass to fuel.
[[Page H4587]]
``(2) Demonstration.--The term `demonstration' means
demonstration of technology in a pilot plant or semi-works
scale facility, including a plant or facility located on a
farm.
``(3) Initiative.--The term `Initiative' means the Biomass
Research and Development Initiative established under
subsection (e).
``(b) Cooperation and Coordination in Biomass Research and
Development.--
``(1) In general.--The Secretary of Agriculture and the
Secretary of Energy shall coordinate policies and procedures
that promote research and development regarding the
production of biofuels and biobased products.
``(2) Points of contact.--To coordinate research and
development programs and activities relating to biofuels and
biobased products that are carried out by their respective
departments--
``(A) the Secretary of Agriculture shall designate, as the
point of contact for the Department of Agriculture, an
officer of the Department of Agriculture appointed by the
President to a position in the Department before the date of
the designation, by and with the advice and consent of the
Senate; and
``(B) the Secretary of Energy shall designate, as the point
of contact for the Department of Energy, an officer of the
Department of Energy appointed by the President to a position
in the Department before the date of the designation, by and
with the advice and consent of the Senate.
``(c) Biomass Research and Development Board.--
``(1) Establishment.--There is established the Biomass
Research and Development Board to carry out the duties
described in paragraph (3).
``(2) Membership.--The Board shall consist of--
``(A) the point of contacts of the Department of Energy and
the Department of Agriculture, who shall serve as
cochairpersons of the Board;
``(B) a senior officer of each of the Department of the
Interior, the Environmental Protection Agency, the National
Science Foundation, and the Office of Science and Technology
Policy, each of whom shall have a rank that is equivalent to
the rank of the points of contact; and
``(C) at the option of the Secretary of Agriculture and the
Secretary of Energy, other members appointed by the
Secretaries (after consultation with the Board).
``(3) Duties.--The Board shall--
``(A) coordinate research and development activities
relating to biofuels and biobased products--
``(i) between the Department of Agriculture and the
Department of Energy; and
``(ii) with other departments and agencies of the Federal
Government;
``(B) provide recommendations to the points of contact
concerning administration of this title;
``(C) ensure that--
``(i) solicitations are open and competitive with awards
made annually; and
``(ii) objectives and evaluation criteria of the
solicitations are clearly stated and minimally prescriptive,
with no areas of special interest; and
``(D) ensure that the panel of scientific and technical
peers assembled under subsection (e) to review proposals is
composed predominantly of independent experts selected from
outside the Departments of Agriculture and Energy.
``(4) Funding.--Each agency represented on the Board is
encouraged to provide funds for any purpose under this
section.
``(5) Meetings.--The Board shall meet at least quarterly.
``(d) Biomass Research and Development Technical Advisory
Committee.--
``(1) Establishment.--There is established the Biomass
Research and Development Technical Advisory Committee to
carry out the duties described in paragraph (3).
``(2) Membership.--
``(A) In general.--The Advisory Committee shall consist
of--
``(i) an individual affiliated with the biofuels industry;
``(ii) an individual affiliated with the biobased
industrial and commercial products industry;
``(iii) an individual affiliated with an institution of
higher education who has expertise in biofuels and biobased
products;
``(iv) 2 prominent engineers or scientists from government
or academia who have expertise in biofuels and biobased
products;
``(v) an individual affiliated with a commodity trade
association;
``(vi) 2 individuals affiliated with environmental or
conservation organizations;
``(vii) an individual associated with State government who
has expertise in biofuels and biobased products;
``(viii) an individual with expertise in energy and
environmental analysis;
``(ix) an individual with expertise in the economics of
biofuels and biobased products;
``(x) an individual with expertise in agricultural
economics;
``(xi) an individual with expertise in plant biology and
biomass feedstock development;
``(xii) an individual with expertise in agronomy, crop
science, or soil science; and
``(xiii) at the option of the points of contact, other
members.
``(B) Appointment.--The members of the Advisory Committee
shall be appointed by the points of contact.
``(3) Duties.--The Advisory Committee shall--
``(A) advise the points of contact with respect to the
Initiative; and
``(B) evaluate and make recommendations in writing to the
Board regarding whether--
``(i) funds authorized for the Initiative are distributed
and used in a manner that is consistent with the objectives,
purposes, and considerations of the Initiative;
``(ii) solicitations are open and competitive with awards
made annually;
``(iii) objectives and evaluation criteria of the
solicitations are clearly stated and minimally prescriptive,
with no areas of special interest;
``(iv) the points of contact are funding proposals under
this title that are selected on the basis of merit, as
determined by an independent panel of scientific and
technical peers predominantly from outside the Departments of
Agriculture and Energy; and
``(v) activities under this title are carried out in
accordance with this title.
``(4) Coordination.--To avoid duplication of effort, the
Advisory Committee shall coordinate its activities with those
of other Federal advisory committees working in related
areas.
``(5) Meetings.--The Advisory Committee shall meet at least
quarterly.
``(6) Terms.--Members of the Advisory Committee shall be
appointed for a term of 3 years.
``(e) Biomass Research and Development Initiative.--
``(1) In general.--The Secretary of Agriculture and the
Secretary of Energy, acting through their respective points
of contact and in consultation with the Board, shall
establish and carry out a Biomass Research and Development
Initiative under which competitively awarded grants,
contracts, and financial assistance are provided to, or
entered into with, eligible entities to carry out research on
and development and demonstration of--
``(A) biofuels and biobased products; and
``(B) the methods, practices, and technologies, for the
production of biofuels and biobased products.
``(2) Objectives.--The objectives of the Initiative are to
develop--
``(A) technologies and processes necessary for abundant
commercial production of biofuels at prices competitive with
fossil fuels;
``(B) high-value biobased products--
``(i) to enhance the economic viability of biofuels and
power;
``(ii) to serve as substitutes for petroleum-based
feedstocks and products; and
``(iii) to enhance the value of coproducts produced using
the technologies and processes; and
``(C) a diversity of economically and environmentally
sustainable domestic sources of renewable biomass for
conversion to biofuels, bioenergy, and biobased products.
``(3) Technical areas.--The Secretary of Agriculture and
the Secretary of Energy, in consultation with the
Administrator of the Environmental Protection Agency and
heads of other appropriate departments and agencies (referred
to in this subsection as the `Secretaries'), shall direct the
Initiative in the 3 following areas:
``(A) Feedstocks development.--Research, development, and
demonstration activities regarding feedstocks and feedstock
logistics (including the harvest, handling, transport,
preprocessing, and storage) relevant to production of raw
materials for conversion to biofuels and biobased products.
``(B) Biofuels and biobased products development.--
Research, development, and demonstration activities to
support--
``(i) the development of diverse cost-effective
technologies for the use of cellulosic biomass in the
production of biofuels and biobased products; and
``(ii) product diversification through technologies
relevant to production of a range of biobased products
(including chemicals, animal feeds, and cogenerated power)
that potentially can increase the feasibility of fuel
production in a biorefinery.
``(C) Biofuels development analysis.--
``(i) Strategic guidance.--The development of analysis that
provides strategic guidance for the application of renewable
biomass technologies to improve sustainability and
environmental quality, cost effectiveness, security, and
rural economic development.
``(ii) Energy and environmental impact.--Development of
systematic evaluations of the impact of expanded biofuel
production on the environment (including forest land) and on
the food supply for humans and animals, including the
improvement and development of tools for life cycle analysis
of current and potential biofuels.
``(iii) Assessment of federal land.--Assessments of the
potential of Federal land resources to increase the
production of feedstocks for biofuels and biobased products,
consistent with the integrity of soil and water resources and
with other environmental considerations.
``(4) Additional considerations.--Within the technical
areas described in paragraph (3), the Secretaries shall
support research and development--
``(A) to create continuously expanding opportunities for
participants in existing biofuels production by seeking
synergies and continuity with current technologies and
practices;
``(B) to maximize the environmental, economic, and social
benefits of production of
[[Page H4588]]
biofuels and derived biobased products on a large scale; and
``(C) to facilitate small-scale production and local and
on-farm use of biofuels, including the development of small-
scale gasification technologies for production of biofuel
from cellulosic feedstocks.
``(5) Eligibility.--To be eligible for a grant, contract,
or assistance under this section, an applicant shall be--
``(A) an institution of higher education;
``(B) a National Laboratory;
``(C) a Federal research agency;
``(D) a State research agency;
``(E) a private sector entity;
``(F) a nonprofit organization; or
``(G) a consortium of 2 or more entities described in
subparagraphs (A) through (F).
``(6) Administration.--
``(A) In general.--After consultation with the Board, the
points of contact shall--
``(i) publish annually 1 or more joint requests for
proposals for grants, contracts, and assistance under this
subsection;
``(ii) require that grants, contracts, and assistance under
this section be awarded based on a scientific peer review by
an independent panel of scientific and technical peers;
``(iii) give special consideration to applications that--
``(I) involve a consortia of experts from multiple
institutions;
``(II) encourage the integration of disciplines and
application of the best technical resources; and
``(III) increase the geographic diversity of demonstration
projects; and
``(iv) require that the technical areas described in each
of subparagraphs (A), (B), and (C) of paragraph (3) receive
not less than 15 percent of funds made available to carry out
this section.
``(B) Cost share.--
``(i) Research and development projects.--
``(I) In general.--Except as provided in subclause (II),
the non-Federal share of the cost of a research or
development project under this section shall be not less than
20 percent.
``(II) Reduction.--The Secretary of Agriculture or the
Secretary of Energy, as appropriate, may reduce the non-
Federal share required under subclause (I) if the appropriate
Secretary determines the reduction to be necessary and
appropriate.
``(ii) Demonstration and commercial projects.--The non-
Federal share of the cost of a demonstration or commercial
project under this section shall be not less than 50 percent.
``(C) Technology and information transfer.--The Secretary
of Agriculture and the Secretary of Energy shall ensure that
applicable research results and technologies from the
Initiative are--
``(i) adapted, made available, and disseminated, as
appropriate; and
``(ii) included in the best practices database established
under section 1672C(e) of the Food, Agriculture,
Conservation, and Trade Act of 1990.
``(f) Administrative Support and Funds.--
``(1) In general.--The Secretary of Energy and the
Secretary of Agriculture may provide such administrative
support and funds of the Department of Energy and the
Department of Agriculture to the Board and the Advisory
Committee as are necessary to enable the Board and the
Advisory Committee to carry out their duties under this
section.
``(2) Other agencies.--The heads of the agencies referred
to in subsection (c)(2)(B), and the other members of the
Board appointed under subsection (c)(2)(C), are encouraged to
provide administrative support and funds of their respective
agencies to the Board and the Advisory Committee.
``(3) Limitation.--Not more than 4 percent of the amount
made available for each fiscal year under subsection (h) may
be used to pay the administrative costs of carrying out this
section.
``(g) Reports.--For each fiscal year for which funds are
made available to carry out this section, the Secretary of
Energy and the Secretary of Agriculture shall jointly submit
to Congress a detailed report on--
``(1) the status and progress of the Initiative, including
a report from the Advisory Committee on whether funds
appropriated for the Initiative have been distributed and
used in a manner that is consistent with the objectives and
requirements of this section;
``(2) the general status of cooperation and research and
development efforts carried out at each agency with respect
to biofuels and biobased products; and
``(3) the plans of the Secretary of Energy and the
Secretary of Agriculture for addressing concerns raised in
the report, including concerns raised by the Advisory
Committee.
``(h) Funding.--
``(1) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary of Agriculture shall use to
carry out this section, to remain available until expended--
``(A) $20,000,000 for fiscal year 2009;
``(B) $28,000,000 for fiscal year 2010;
``(C) $30,000,000 for fiscal year 2011; and
``(D) $40,000,000 for fiscal year 2012.
``(2) Discretionary funding.--In addition to any other
funds made available to carry out this section, there is
authorized to be appropriated to carry out this section
$35,000,000 for each of fiscal years 2009 through 2012.
``SEC. 9009. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE.
``(a) Definitions.--In this section:
``(1) Eligible rural community.--The term `eligible rural
community' means a community located in a rural area (as
defined in section 343(a)(13)(A) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1991(a)(13)(A))).
``(2) Initiative.--The term `Initiative' means the Rural
Energy Self-Sufficiency Initiative established under this
section.
``(3) Integrated renewable energy system.--The term
`integrated renewable energy system' means a community-wide
energy system that--
``(A) reduces conventional energy use; and
``(B) increases the use of energy from renewable sources.
``(b) Establishment.--The Secretary shall establish a Rural
Energy Self-Sufficiency Initiative to provide financial
assistance for the purpose of enabling eligible rural
communities to substantially increase the energy self-
sufficiency of the eligible rural communities.
``(c) Grant Assistance.--
``(1) In general.--The Secretary shall make grants
available under the Initiative to eligible rural communities
to carry out an activity described in paragraph (2).
``(2) Use of grant funds.--An eligible rural community may
use a grant--
``(A) to conduct an energy assessment that assesses the
total energy use of all energy users in the eligible rural
community;
``(B) to formulate and analyze ideas for reducing energy
usage by the eligible rural community from conventional
sources; and
``(C) to develop and install an integrated renewable energy
system.
``(3) Grant selection.--
``(A) Application.--To be considered for a grant, an
eligible rural community shall submit an application to the
Secretary that describes the ways in which the community
would use the grant to carry out an activity described in
paragraph (2).
``(B) Preference.--The Secretary shall give preference to
those applications that propose to carry out an activity in
coordination with--
``(i) institutions of higher education or nonprofit
foundations of institutions of higher education;
``(ii) Federal, State, or local government agencies;
``(iii) public or private power generation entities; or
``(iv) government entities with responsibility for water or
natural resources.
``(4) Report.--An eligible rural community receiving a
grant under the Initiative shall submit to the Secretary a
report on the project of the eligible rural community.
``(5) Cost-sharing.--The amount of a grant under the
Initiative shall not exceed 50 percent of the cost of the
activities described in the application.
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $5,000,000 for
each of fiscal years 2009 through 2012.
``SEC. 9010. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY
PRODUCERS.
``(a) Definitions.--In this section:
``(1) Bioenergy.--The term `bioenergy' means fuel grade
ethanol and other biofuel.
``(2) Bioenergy producer.--The term `bioenergy producer'
means a producer of bioenergy that uses an eligible commodity
to produce bioenergy under this section.
``(3) Eligible commodity.--The term `eligible commodity'
means a form of raw or refined sugar or in-process sugar that
is eligible to be marketed in the United States for human
consumption or to be used for the extraction of sugar for
human consumption.
``(4) Eligible entity.--The term `eligible entity' means an
entity located in the United States that markets an eligible
commodity in the United States.
``(b) Feedstock Flexibility Program.--
``(1) In general.--
``(A) Purchases and sales.--For each of the 2008 through
2012 crops, the Secretary shall purchase eligible commodities
from eligible entities and sell such commodities to bioenergy
producers for the purpose of producing bioenergy in a manner
that ensures that section 156 of the Federal Agriculture
Improvement and Reform Act (7 U.S.C. 7272) is operated at no
cost to the Federal Government by avoiding forfeitures to the
Commodity Credit Corporation.
``(B) Competitive procedures.--In carrying out the
purchases and sales required under subparagraph (A), the
Secretary shall, to the maximum extent practicable, use
competitive procedures, including the receiving, offering,
and accepting of bids, when entering into contracts with
eligible entities and bioenergy producers, provided that such
procedures are consistent with the purposes of subparagraph
(A).
``(C) Limitation.--The purchase and sale of eligible
commodities under subparagraph (A) shall only be made in crop
years in which such purchases and sales are necessary to
ensure that the program authorized under section 156 of the
Federal Agriculture Improvement and Reform Act (7 U.S.C.
7272) is operated at no cost to the Federal Government by
avoiding forfeitures to the Commodity Credit Corporation.
``(2) Notice.--
``(A) In general.--As soon as practicable after the date of
enactment of the Food, Conservation, and Energy Act of 2008
and each September 1 thereafter through September 1, 2012,
the Secretary shall provide notice to eligible entities and
bioenergy producers of the quantity of eligible commodities
that shall be made available for purchase and sale for the
crop year following the date of the notice under this
section.
[[Page H4589]]
``(B) Reestimates.--Not later than the January 1, April 1,
and July 1 of the calendar year following the date of a
notice under subparagraph (A), the Secretary shall reestimate
the quantity of eligible commodities determined under
subparagraph (A), and provide notice and make purchases and
sales based on such reestimates.
``(3) Commodity credit corporation inventory.--
``(A) Dispositions.--
``(i) Bioenergy and generally.--Except as provided in
clause (ii), to the extent that an eligible commodity is
owned and held in inventory by the Commodity Credit
Corporation (accumulated pursuant to the program authorized
under section 156 of the Federal Agriculture Improvement and
Reform Act (7 U.S.C. 7272)), the Secretary shall--
``(I) sell the eligible commodity to bioenergy producers
under this section consistent with paragraph (1)(C);
``(II) dispose of the eligible commodity in accordance with
section 156(f)(2) of that Act; or
``(III) otherwise dispose of the eligible commodity through
the buyback of certificates of quota entry.
``(ii) Preservation of other authorities.--Nothing in this
section limits the use of other authorities for the
disposition of an eligible commodity held in the inventory of
the Commodity Credit Corporation for nonfood use or otherwise
in a manner that does not increase the net quantity of sugar
available for human consumption in the United States market,
consistent with section 156(f)(1) of the Federal Agriculture
Improvement and Reform Act (7 U.S.C. 7272(f)(1)).
``(B) Emergency shortages.--Notwithstanding subparagraph
(A), if there is an emergency shortage of sugar for human
consumption in the United States market that is caused by a
war, flood, hurricane, or other natural disaster, or other
similar event, the Secretary may dispose of an eligible
commodity that is owned and held in inventory by the
Commodity Credit Corporation (accumulated pursuant to the
program authorized under section 156 of the Federal
Agriculture Improvement and Reform Act (7 U.S.C. 7272))
through disposition as authorized under section 156(f) of
that Act or through the use of any other authority of the
Commodity Credit Corporation.
``(4) Transfer rule; storage fees.--
``(A) General transfer rule.--Except with regard to
emergency dispositions under paragraph (3)(B) and as provided
in subparagraph (C), the Secretary shall ensure that
bioenergy producers that purchase eligible commodities
pursuant to this section take possession of the eligible
commodities within 30 calendar days of the date of such
purchase from the Commodity Credit Corporation.
``(B) Payment of storage fees prohibited.--
``(i) In general.--The Secretary shall, to the maximum
extent practicable, carry out this section in a manner that
ensures no storage fees are paid by the Commodity Credit
Corporation in the administration of this section.
``(ii) Exception.--Clause (i) shall not apply with respect
to any commodities owned and held in inventory by the
Commodity Credit Corporation (accumulated pursuant to the
program authorized under section 156 of the Federal
Agriculture Improvement and Reform Act (7 U.S.C. 7272)).
``(C) Option to prevent storage fees.--
``(i) In general.--The Secretary may enter into contracts
with bioenergy producers to sell eligible commodities to such
producers prior in time to entering into contracts with
eligible entities to purchase the eligible commodities to be
used to satisfy the contracts entered into with the bioenergy
producers.
``(ii) Special transfer rule.--If the Secretary makes a
sale and purchase referred to in clause (i), the Secretary
shall ensure that the bioenergy producer that purchased
eligible commodities takes possession of such commodities
within 30 calendar days of the date the Commodity Credit
Corporation purchases the eligible commodities.
``(5) Relation to other laws.--If sugar that is subject to
a marketing allotment under part VII of subtitle B of title
III of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1359aa et seq.) is the subject of a payment under this
section, the sugar shall be considered marketed and shall
count against a processor's allocation of an allotment under
such part, as applicable.
``(6) Funding.--The Secretary shall use the funds,
facilities, and authorities of the Commodity Credit
Corporation, including the use of such sums as are necessary,
to carry out this section.
``SEC. 9011. BIOMASS CROP ASSISTANCE PROGRAM.
``(a) Definitions.--In this section:
``(1) BCAP.--The term `BCAP' means the Biomass Crop
Assistance Program established under this section.
``(2) BCAP project area.--The term `BCAP project area'
means an area that--
``(A) has specified boundaries that are submitted to the
Secretary by the project sponsor and subsequently approved by
the Secretary;
``(B) includes producers with contract acreage that will
supply a portion of the renewable biomass needed by a biomass
conversion facility; and
``(C) is physically located within an economically
practicable distance from the biomass conversion facility.
``(3) Contract acreage.--The term `contract acreage' means
eligible land that is covered by a BCAP contract entered into
with the Secretary.
``(4) Eligible crop.--
``(A) In general.--The term `eligible crop' means a crop of
renewable biomass.
``(B) Exclusions.--The term `eligible crop' does not
include--
``(i) any crop that is eligible to receive payments under
title I of the Food, Conservation, and Energy Act of 2008 or
an amendment made by that title; or
``(ii) any plant that is invasive or noxious or has the
potential to become invasive or noxious, as determined by the
Secretary, in consultation with other appropriate Federal or
State departments and agencies.
``(5) Eligible land.--
``(A) In general.--The term `eligible land' includes
agricultural and nonindustrial private forest lands (as
defined in section 5(c) of the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2103a(c))).
``(B) Exclusions.--The term `eligible land' does not
include--
``(i) Federal- or State-owned land;
``(ii) land that is native sod, as of the date of enactment
of the Food, Conservation, and Energy Act of 2008;
``(iii) land enrolled in the conservation reserve program
established under subchapter B of chapter 1 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et
seq.);
``(iv) land enrolled in the wetlands reserve program
established under subchapter C of chapter 1 of subtitle D of
title XII of that Act (16 U.S.C. 3837 et seq.); or
``(v) land enrolled in the grassland reserve program
established under subchapter D of chapter 2 of subtitle D of
title XII of that Act (16 U.S.C. 3838n et seq.).
``(6) Eligible material.--
``(A) In general.--The term `eligible material' means
renewable biomass.
``(B) Exclusions.--The term `eligible material' does not
include--
``(i) any crop that is eligible to receive payments under
title I of the Food, Conservation, and Energy Act of 2008 or
an amendment made by that title;
``(ii) animal waste and byproducts (including fats, oils,
greases, and manure);
``(iii) food waste and yard waste; or
``(iv) algae.
``(7) Producer.--The term `producer' means an owner or
operator of contract acreage that is physically located
within a BCAP project area.
``(8) Project sponsor.--The term `project sponsor' means--
``(A) a group of producers; or
``(B) a biomass conversion facility.
``(b) Establishment and Purpose.--The Secretary shall
establish and administer a Biomass Crop Assistance Program
to--
``(1) support the establishment and production of eligible
crops for conversion to bioenergy in selected BCAP project
areas; and
``(2) assist agricultural and forest land owners and
operators with collection, harvest, storage, and
transportation of eligible material for use in a biomass
conversion facility.
``(c) BCAP Project Area.--
``(1) In general.--The Secretary shall provide financial
assistance to producers of eligible crops in a BCAP project
area.
``(2) Selection of project areas.--
``(A) In general.--To be considered for selection as a BCAP
project area, a project sponsor shall submit to the Secretary
a proposal that includes, at a minimum--
``(i) a description of the eligible land and eligible crops
of each producer that will participate in the proposed BCAP
project area;
``(ii) a letter of commitment from a biomass conversion
facility that the facility will use the eligible crops
intended to be produced in the proposed BCAP project area;
``(iii) evidence that the biomass conversion facility has
sufficient equity available, as determined by the Secretary,
if the biomass conversion facility is not operational at the
time the proposal is submitted to the Secretary; and
``(iv) any other appropriate information about the biomass
conversion facility or proposed biomass conversion facility
that gives the Secretary a reasonable assurance that the
plant will be in operation by the time that the eligible
crops are ready for harvest.
``(B) BCAP project area selection criteria.--In selecting
BCAP project areas, the Secretary shall consider--
``(i) the volume of the eligible crops proposed to be
produced in the proposed BCAP project area and the
probability that such crops will be used for the purposes of
the BCAP;
``(ii) the volume of renewable biomass projected to be
available from sources other than the eligible crops grown on
contract acres;
``(iii) the anticipated economic impact in the proposed
BCAP project area;
``(iv) the opportunity for producers and local investors to
participate in the ownership of the biomass conversion
facility in the proposed BCAP project area;
``(v) the participation rate by--
``(I) beginning farmers or ranchers (as defined in
accordance with section 343(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1991(a))); or
``(II) socially disadvantaged farmers or ranchers (as
defined in section 2501(e) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)));
``(vi) the impact on soil, water, and related resources;
[[Page H4590]]
``(vii) the variety in biomass production approaches within
a project area, including (as appropriate)--
``(I) agronomic conditions;
``(II) harvest and postharvest practices; and
``(III) monoculture and polyculture crop mixes;
``(viii) the range of eligible crops among project areas;
and
``(ix) any additional information, as determined by the
Secretary.
``(3) Contract.--
``(A) In general.--On approval of a BCAP project area by
the Secretary, each producer in the BCAP project area shall
enter into a contract directly with the Secretary.
``(B) Minimum terms.--At a minimum, contracts shall include
terms that cover--
``(i) an agreement to make available to the Secretary, or
to an institution of higher education or other entity
designated by the Secretary, such information as the
Secretary considers to be appropriate to promote the
production of eligible crops and the development of biomass
conversion technology;
``(ii) compliance with the highly erodible land
conservation requirements of subtitle B of title XII of the
Food Security Act of 1985 (16 U.S.C. 3811 et seq.) and the
wetland conservation requirements of subtitle C of title XII
of that Act (16 U.S.C. 3821 et seq.);
``(iii) the implementation of (as determined by the
Secretary)--
``(I) a conservation plan; or
``(II) a forest stewardship plan or an equivalent plan; and
``(iv) any additional requirements the Secretary considers
appropriate.
``(C) Duration.--A contract under this subsection shall
have a term of up to--
``(i) 5 years for annual and perennial crops; or
``(ii) 15 years for woody biomass.
``(4) Relationship to other programs.--In carrying out this
subsection, the Secretary shall provide for the preservation
of cropland base and yield history applicable to the land
enrolled in a BCAP contract.
``(5) Payments.--
``(A) In general.--The Secretary shall make establishment
and annual payments directly to producers to support the
establishment and production of eligible crops on contract
acreage.
``(B) Amount of establishment payments.--The amount of an
establishment payment under this subsection shall be up to 75
percent of the costs of establishing an eligible perennial
crop covered by the contract, including--
``(i) the cost of seeds and stock for perennials;
``(ii) the cost of planting the perennial crop, as
determined by the Secretary; and
``(iii) in the case of nonindustrial private forestland,
the costs of site preparation and tree planting.
``(C) Amount of annual payments.--
``(i) In general.--Subject to clause (ii), the amount of an
annual payment under this subsection shall be determined by
the Secretary.
``(ii) Reduction.--The Secretary shall reduce an annual
payment by an amount determined to be appropriate by the
Secretary, if--
``(I) an eligible crop is used for purposes other than the
production of energy at the biomass conversion facility;
``(II) an eligible crop is delivered to the biomass
conversion facility;
``(III) the producer receives a payment under subsection
(d);
``(IV) the producer violates a term of the contract; or
``(V) there are such other circumstances, as determined by
the Secretary to be necessary to carry out this section.
``(d) Assistance With Collection, Harvest, Storage, and
Transportation.--
``(1) In general.--The Secretary shall make a payment for
the delivery of eligible material to a biomass conversion
facility to--
``(A) a producer of an eligible crop that is produced on
BCAP contract acreage; or
``(B) a person with the right to collect or harvest
eligible material.
``(2) Payments.--
``(A) Costs covered.--A payment under this subsection shall
be in an amount described in subparagraph (B) for--
``(i) collection;
``(ii) harvest;
``(iii) storage; and
``(iv) transportation to a biomass conversion facility.
``(B) Amount.--Subject to paragraph (3), the Secretary may
provide matching payments at a rate of $1 for each $1 per ton
provided by the biomass conversion facility, in an amount
equal to not more than $45 per ton for a period of 2 years.
``(3) Limitation on assistance for bcap contract acreage.--
As a condition of the receipt of annual payment under
subsection (c), a producer receiving a payment under this
subsection for collection, harvest, storage or transportation
of an eligible crop produced on BCAP acreage shall agree to a
reduction in the annual payment.
``(e) Report.--Not later than 4 years after the date of
enactment of the Food, Conservation, and Energy Act of 2008,
the Secretary shall submit to the Committee on Agriculture of
the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report
on the dissemination by the Secretary of the best practice
data and information gathered from participants receiving
assistance under this section.
``(f) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this
section such sums as are necessary for each of fiscal years
2008 through 2012.
``SEC. 9012. FOREST BIOMASS FOR ENERGY.
``(a) In General.--The Secretary, acting through the Forest
Service, shall conduct a competitive research and development
program to encourage use of forest biomass for energy.
``(b) Eligible Entities.--Entities eligible to compete
under the program under this section include--
``(1) the Forest Service (acting through Research and
Development);
``(2) other Federal agencies;
``(3) State and local governments;
``(4) Indian tribes;
``(5) land-grant colleges and universities; and
``(6) private entities.
``(c) Priority for Project Selection.--In carrying out this
section, the Secretary shall give priority to projects that--
``(1) develop technology and techniques to use low-value
forest biomass, such as byproducts of forest health
treatments and hazardous fuels reduction, for the production
of energy;
``(2) develop processes that integrate production of energy
from forest biomass into biorefineries or other existing
manufacturing streams;
``(3) develop new transportation fuels from forest biomass;
and
``(4) improve the growth and yield of trees intended for
renewable energy production.
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $15,000,000 for
each of fiscal years 2009 through 2012.
``SEC. 9013. COMMUNITY WOOD ENERGY PROGRAM.
``(a) Definitions.--In this section:
``(1) Community wood energy plan.--The term `community wood
energy plan' means an assessment of--
``(A) available feedstocks necessary to supply a community
wood energy system; and
``(B) the long-term feasibility of supplying and operating
a community wood energy system.
``(2) Community wood energy system.--
``(A) In general.--The term `community wood energy system'
means an energy system that--
``(i) primarily services public facilities owned or
operated by State or local governments, including schools,
town halls, libraries, and other public buildings; and
``(ii) uses woody biomass as the primary fuel.
``(B) Inclusions.--The term `community wood energy system'
includes single facility central heating, district heating,
combined heat and energy systems, and other related biomass
energy systems.
``(b) Grant Program.--
``(1) In general.--The Secretary, acting through the Chief
of the Forest Service, shall establish a program to be known
as the `Community Wood Energy Program' to provide--
``(A) grants of up to $50,000 to State and local
governments (or designees) to develop community wood energy
plans; and
``(B) competitive grants to State and local governments to
acquire or upgrade community wood energy systems.
``(2) Considerations.--In selecting applicants for grants
under paragraph (1)(B), the Secretary shall consider--
``(A) the energy efficiency of the proposed system;
``(B) the cost effectiveness of the proposed system; and
``(C) other conservation and environmental criteria that
the Secretary considers appropriate.
``(3) Use of plan.--A State or local government applying to
receive a competitive grant described in paragraph (1)(B)
shall submit to the Secretary as part of the grant
application the applicable community wood energy plan.
``(c) Limitation.--A community wood energy system acquired
with grant funds provided under subsection (b)(1)(B) shall
not exceed an output of--
``(1) 50,000,000 Btu per hour for heating; and
``(2) 2 megawatts for electric power production.
``(d) Matching Funds.--A State or local government that
receives a grant under subsection (b) shall contribute an
amount of non-Federal funds towards the development of the
community wood energy plan, or acquisition of the community
wood energy systems that is at least equal to the amount of
grant funds received by the State or local government under
that subsection.
``(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $5,000,000 for
each of fiscal years 2009 through 2012.''.
(b) Conforming Amendment.--The Biomass Research and
Development Act of 2000 (7 U.S.C. 8601 et seq.) is repealed.
SEC. 9002. BIOFUELS INFRASTRUCTURE STUDY.
(a) In General.--The Secretary of Agriculture, the
Secretary of Energy, the Administrator of the Environmental
Protection Agency, and the Secretary of Transportation
(referred to in this section as the ``Secretaries''), shall
jointly conduct a study that includes--
[[Page H4591]]
(1) an assessment of the infrastructure needs for expanding
the domestic production, transport, and distribution of
biofuels given current and likely future market trends;
(2) recommendations for infrastructure needs and
development approaches, taking into account cost and other
associated factors; and
(3) a report that includes--
(A) a summary of infrastructure needs;
(B) an analysis of alternative development approaches to
meeting the needs described in subparagraph (A), including
cost, siting, and other regulatory issues; and
(C) recommendations for specific infrastructure development
actions to be taken.
(b) Scope of Study.--
(1) In general.--In conducting the study described in
subsection (a), the Secretaries shall address--
(A) current and likely future market trends for biofuels
through calendar year 2025;
(B) current and future availability of feedstocks;
(C) water resource needs, including water requirements for
biorefineries;
(D) shipping and storage needs for biomass feedstock and
biofuels, including the adequacy of rural roads; and
(E) modes of transportation and delivery for biofuels
(including shipment by rail, truck, pipeline or barge) and
associated infrastructure issues.
(2) Considerations.--In addressing the issues described in
paragraph (1), the Secretaries shall consider--
(A) the effects of increased tank truck, rail, and barge
transport on existing infrastructure and safety;
(B) the feasibility of shipping biofuels through pipelines
in existence as the date of enactment of this Act;
(C) the development of new biofuels pipelines, including
siting, financing, timing, and other economic issues;
(D) the implications of various biofuel blend levels on
infrastructure needs;
(E) the implications of various approaches to
infrastructure development on resource use and conservation;
(F) regional differences in biofuels infrastructure needs;
and
(G) other infrastructure issues, as determined by the
Secretaries.
(c) Implementation.--In carrying out this section, the
Secretaries --
(1) shall--
(A) consult with individuals and entities with interest or
expertise in the areas described in subsection (b);
(B) to the extent available, use the information developed
and results of the related studies authorized under sections
243 and 245 of the Energy Independence and Security Act of
2007 (Public Law 110-140; 121 Stat. 1540, 1546)); and
(C) submit to Congress the report required under subsection
(a)(3), including--
(i) in the Senate--
(I) the Committee on Agriculture, Nutrition, and Forestry ;
(II) the Committee on Commerce, Science, and
Transportation;
(III) the Committee on Energy and Natural Resources; and
(IV) the Committee on Environment and Public Works; and
(ii) in the House of Representatives--
(I) the Committee on Agriculture;
(II) the Committee on Energy and Commerce;
(III) the Committee on Transportation and Infrastructure;
and
(IV) the Committee on Science and Technology; and
(2) may issue a solicitation for a competition to select a
contractor to support the Secretaries.
SEC. 9003. RENEWABLE FERTILIZER STUDY.
(a) In General.--Not later than 1 year after the date of
receipt of appropriations to carry out this section, the
Secretary shall--
(1) conduct a study to assess the current state of
knowledge regarding the potential for the production of
fertilizer from renewable energy sources in rural areas,
including--
(A) identification of the critical challenges to
commercialization of rural production of nitrogen and
phosphorus-based fertilizer from renewables;
(B) the most promising processes and technologies for
renewable fertilizer production;
(C) the potential cost-competitiveness of renewable
fertilizer; and
(D) the potential impacts of renewable fertilizer on fossil
fuel use and the environment; and
(2) submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report describing the results of
the study.
(b) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $1,000,000 for
fiscal year 2009.
TITLE X--HORTICULTURE AND ORGANIC AGRICULTURE
SEC. 10001. DEFINITIONS.
In this title:
(1) Specialty crop.--The term ``specialty crop'' has the
meaning given the term in section 3 of the Specialty Crops
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law
108-465).
(2) State department of agriculture.--The term ``State
department of agriculture'' means the agency, commission, or
department of a State government responsible for protecting
and promoting agriculture in the State.
Subtitle A--Horticulture Marketing and Information
SEC. 10101. INDEPENDENT EVALUATION OF DEPARTMENT OF
AGRICULTURE COMMODITY PURCHASE PROCESS.
(a) Evaluation Required.--The Secretary shall arrange to
have performed an independent evaluation of the purchasing
processes (including the budgetary, statutory, and regulatory
authority underlying the processes) used by the Department of
Agriculture to implement the requirement that funds available
under section 32 of the Act of August 24, 1935 (7 U.S.C.
612c), shall be principally devoted to perishable
agricultural commodities.
(b) Submission of Results.--Not later than 18 months after
the date of the enactment of this Act, the Secretary shall
submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report on the results of the
evaluation.
SEC. 10102. QUALITY REQUIREMENTS FOR CLEMENTINES.
Section 8e(a) of the Agricultural Adjustment Act (7 U.S.C.
608e-1(a)), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, is amended in the matter
preceding the first proviso in the first sentence by
inserting ``clementines,'' after ``nectarines,''.
SEC. 10103. INCLUSION OF SPECIALTY CROPS IN CENSUS OF
AGRICULTURE.
Section 2(a) of the Census of Agriculture Act of 1997 (7
U.S.C. 2204g(a)) is amended--
(1) by striking ``In 1998'' and inserting the following:
``(1) In general.--In 1998''; and
(2) by adding at the end the following:
``(2) Inclusion of specialty crops.--Effective beginning
with the census of agriculture required to be conducted in
2008, the Secretary shall conduct as part of each census of
agriculture a census of specialty crops (as that term is
defined in section 3 of the Specialty Crops Competitiveness
Act of 2004 (7 U.S.C. 1621 note; Public Law 108-465)).''.
SEC. 10104. MUSHROOM PROMOTION, RESEARCH, AND CONSUMER
INFORMATION.
(a) Regions and Members.--Section 1925(b)(2) of the
Mushroom Promotion, Research, and Consumer Information Act of
1990 (7 U.S.C. 6104(b)(2)) is amended--
(1) in subparagraph (B), by striking ``4 regions'' and
inserting ``3 regions'';
(2) in subparagraph (D), by striking ``35,000,000 pounds''
and inserting ``50,000,000 pounds''; and
(3) by striking subparagraph (E) and inserting the
following:
``(E) Additional members.--In addition to the members
appointed pursuant to paragraph (1), and subject to the 9-
member limit of members on the Council provided in that
paragraph, the Secretary shall appoint additional members to
the council from a region that attains additional pounds of
production as follows:
``(i) If the annual production of a region is greater than
110,000,000 pounds, but less than or equal to 180,000,000
pounds, the region shall be represented by 1 additional
member.
``(ii) If the annual production of a region is greater than
180,000,000 pounds, but less than or equal to 260,000,000
pounds, the region shall be represented by 2 additional
members.
``(iii) If the annual production of a region is greater
than 260,000,000 pounds, the region shall be represented by 3
additional members.''.
(b) Powers and Duties of Council.--Section 1925(c) of the
Mushroom Promotion, Research, and Consumer Information Act of
1990 (7 U.S.C. 6104(c)) is amended--
(1) by redesignating paragraphs (6), (7), and (8) as
paragraphs (7), (8), and (9), respectively; and
(2) by inserting after paragraph (5) the following:
``(6) to develop and propose to the Secretary programs for
good agricultural and good handling practices and related
activities for mushrooms;''.
SEC. 10105. FOOD SAFETY EDUCATION INITIATIVES.
(a) Initiative Authorized.--The Secretary may carry out a
food safety education program to educate the public and
persons in the fresh produce industry about--
(1) scientifically proven practices for reducing microbial
pathogens on fresh produce; and
(2) methods of reducing the threat of cross-contamination
of fresh produce through sanitary handling practices.
(b) Cooperation.--The Secretary may carry out the education
program in cooperation with public and private partners.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$1,000,000 for each of fiscal years 2008 through 2012, to
remain available until expended.
SEC. 10106. FARMERS' MARKET PROMOTION PROGRAM.
Section 6 of the Farmer-to-Consumer Direct Marketing Act of
1976 (7 U.S.C. 3005) is amended--
(1) in subsection (a), by inserting ``and to promote direct
producer-to-consumer marketing'' before the period at the
end;
(2) in subsection (b)(1)--
[[Page H4592]]
(A) in subparagraph (A), by inserting ``agri-tourism
activities,'' after ``programs,''; and
(B) in subparagraph (B)--
(i) by inserting ``agri-tourism activities,'' after
``programs,'' and
(ii) by striking ``infrastructure'' and inserting
``marketing opportunities'';
(3) in subsection (c)(1), by inserting ``or a producer
network or association'' after ``cooperative''; and
(4) by striking subsection (e) and inserting the following:
``(e) Funding.--
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this
section--
``(A) $3,000,000 for fiscal year 2008;
``(B) $5,000,000 for each of fiscal years 2009 through
2010; and
``(C) $10,000,000 for each of fiscal years 2011 and 2012.
``(2) Use of funds.--Not less than 10 percent of the funds
used to carry out this section in a fiscal year under
paragraph (1) shall be used to support the use of electronic
benefits transfers for Federal nutrition programs at farmers'
markets.
``(3) Interdepartmental coordination.--In carrying out this
subsection, the Secretary shall ensure coordination between
the various agencies to the maximum extent practicable.
``(4) Limitation.--Funds described in paragraph (2)--
``(A) may not be used for the ongoing cost of carrying out
any project; and
``(B) shall only be provided to eligible entities that
demonstrate a plan to continue to provide EBT card access at
1 or more farmers' markets following the receipt of the
grant.''.
SEC. 10107. SPECIALTY CROPS MARKET NEWS ALLOCATION.
(a) In General.--The Secretary shall--
(1) carry out market news activities to provide timely
price and shipment information of specialty crops in the
United States; and
(2) use funds made available under subsection (b) to
increase the reporting levels for specialty crops in effect
on the date of enactment of this Act.
(b) Authorization of Appropriations.--In addition to any
other funds made available through annual appropriations for
market news services, there is authorized to be appropriated
to carry out this section $9,000,000 for each of fiscal years
2008 through 2012, to remain available until expended.
SEC. 10108. EXPEDITED MARKETING ORDER FOR HASS AVOCADOS FOR
GRADES AND STANDARDS AND OTHER PURPOSES.
(a) In General.--The Secretary shall initiate procedures
under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.),
reenacted with amendments by the Agricultural Marketing
Agreement Act of 1937, to determine whether it would be
appropriate to establish a Federal marketing order for Hass
avocados relating to grades and standards and for other
purposes under that Act.
(b) Expedited Procedures.--
(1) Proposal for an order.--An organization of domestic
avocado producers in existence on the date of enactment of
this Act may request the issuance of, and submit to the
Secretary a proposal for, an order described in subsection
(a).
(2) Publication of proposal.--Not later than 60 days after
the date on which the Secretary receives a proposed order
under paragraph (1), the Secretary shall initiate procedures
described in subsection (a) to determine whether the proposed
order should proceed.
(c) Effective Date.--Any order issued under this section
shall become effective not later than 15 months after the
date on which the Secretary initiates procedures under the
Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted
with amendments by the Agricultural Marketing Agreement Act
of 1937.
SEC. 10109. SPECIALTY CROP BLOCK GRANTS.
(a) Definition of Specialty Crop.--Section 3(1) of the
Specialty Crops Competitiveness Act of 2004 (Public Law 108-
465; 7 U.S.C. 1621 note) is amended by inserting
``horticulture and'' before ``nursery''.
(b) Definition of State.--Section 3(2) of the Specialty
Crops Competitiveness Act of 2004 (Public Law 108-465; 7
U.S.C. 1621 note) is amended by striking ``and the
Commonwealth of Puerto Rico'' and inserting ``the
Commonwealth of Puerto Rico, Guam, American Samoa, the United
States Virgin Islands, and the Commonwealth of the Northern
Mariana Islands''.
(c) Specialty Crop Block Grants.--Section 101 of the
Specialty Crops Competitiveness Act of 2004 (Public Law 108-
465; 7 U.S.C. 1621 note) is amended--
(1) in subsection (a)--
(A) by striking ``Subject to the appropriation of funds to
carry out this section'' and inserting ``Using the funds made
available under subsection (j)''; and
(B) by striking ``2009'' and inserting ``2012'';
(2) in subsection (b), by striking ``appropriated pursuant
to the authorization of appropriations in subsection (i)''
and inserting ``made available under subsection (j)'';
(3) by striking subsection (c) and inserting the following:
``(c) Minimum Grant Amount.--Notwithstanding subsection
(b), each State shall receive a grant under this section for
each fiscal year in an amount that is at least equal to the
higher of--
``(1) $100,000; or
``(2) \1/3\ of 1 percent of the total amount of funding
made available to carry out this section for the fiscal
year.''; and
(4) by striking subsection (i) and inserting the following:
``(i) Reallocation.--
``(1) In general.--The Secretary shall reallocate to other
States in accordance with paragraph (2) any amounts made
available for a fiscal year under this section that are not
obligated or expended by a date during that fiscal year
determined by the Secretary.
``(2) Pro rata allocation.--The Secretary shall allocate
funds described in paragraph (1) pro rata to the remaining
States that applied during the specified grant application
period.
``(3) Use of reallocated funds.--Funds allocated to a State
under this subsection shall be used by the State only to
carry out projects that were previously approved in the State
plan of the State.
``(j) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary of Agriculture shall make grants
under this section, using--
``(1) $10,000,000 for fiscal year 2008;
``(2) $49,000,000 for fiscal year 2009; and
``(3) $55,000,000 for each of fiscal years 2010 through
2012.''.
Subtitle B--Pest and Disease Management
SEC. 10201. PLANT PEST AND DISEASE MANAGEMENT AND DISASTER
PREVENTION.
(a) In General.--Subtitle A of the Plant Protection Act (7
U.S.C. 7711 et seq.) is amended by adding at the end the
following:
``SEC. 420. PLANT PEST AND DISEASE MANAGEMENT AND DISASTER
PREVENTION.
``(a) Definitions.--In this section:
``(1) Early plant pest detection and surveillance.--The
term `early plant pest detection and surveillance' means the
full range of activities undertaken to find newly introduced
plant pests, whether the plant pests are new to the United
States or new to certain areas of the United States, before--
``(A) the plant pests become established; or
``(B) the plant pest infestations become too large and
costly to eradicate or control.
``(2) Specialty crop.--The term `specialty crop' has the
meaning given the term in section 3 of the Specialty Crops
Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law
108-465).
``(3) State department of agriculture.--The term `State
department of agriculture' means an agency of a State that
has a legal responsibility to perform early plant pest
detection and surveillance activities.
``(b) Early Plant Pest Detection and Surveillance
Improvement Program.--
``(1) Cooperative agreements.--The Secretary shall enter
into a cooperative agreement with each State department of
agriculture that agrees to conduct early plant pest detection
and surveillance activities.
``(2) Consultation.--In carrying out this subsection, the
Secretary shall consult with--
``(A) the National Plant Board; and
``(B) other interested parties.
``(3) Federal advisory committee act.--The Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to
consultations under this subsection.
``(4) Application.--
``(A) In general.--A State department of agriculture
seeking to enter into a cooperative agreement under this
subsection shall submit to the Secretary an application
containing such information as the Secretary may require.
``(B) Notification.--The Secretary shall notify applicants
of--
``(i) the requirements to be imposed on a State department
of agriculture for auditing of, and reporting on, the use of
any funds provided by the Secretary under the cooperative
agreement;
``(ii) the criteria to be used to ensure that early pest
detection and surveillance activities supported under the
cooperative agreement are based on sound scientific data or
thorough risk assessments; and
``(iii) the means of identifying pathways of pest
introductions.
``(5) Use of funds.--
``(A) Plant pest detection and surveillance activities.--A
State department of agriculture that receives funds under
this subsection shall use the funds to carry out early plant
pest detection and surveillance activities approved by the
Secretary to prevent the introduction or spread of a plant
pest.
``(B) Subagreements.--Nothing in this subsection prevents a
State department of agriculture from using funds received
under paragraph (4) to enter into subagreements with
political subdivisions of the State that have legal
responsibilities relating to agricultural plant pest and
disease surveillance.
``(C) Non-federal share.--The non-Federal share of the cost
of carrying out a cooperative agreement under this section
may be provided in-kind, including through provision of such
indirect costs of the cooperative agreement as the Secretary
considers to be appropriate.
``(D) Ability to provide funds.--The Secretary shall not
take the ability to provide non-Federal costs to carry out a
cooperative agreement entered into under subparagraph (A)
into consideration when deciding whether to enter into a
cooperative agreement with a State department of agriculture.
``(6) Special funding considerations.--The Secretary shall
provide funds to a State department of agriculture if the
Secretary determines that--
``(A) the State department of agriculture is in a State
that has a high risk of being affected by 1 or more plant
pests or diseases, taking into consideration--
[[Page H4593]]
``(i) the number of international ports of entry in the
State;
``(ii) the volume of international passenger and cargo
entry into the State;
``(iii) the geographic location of the State and if the
location or types of agricultural commodities produced in the
State are conducive to agricultural pest and disease
establishment due to the climate, crop diversity, or natural
resources (including unique plant species) of the State; and
``(iv) whether the Secretary has determined that an
agricultural pest or disease in the State is a Federal
concern ; and
``(B) the early plant pest detection and surveillance
activities supported with the funds will likely--
``(i) prevent the introduction and establishment of plant
pests; and
``(ii) provide a comprehensive approach to compliment
Federal detection efforts.
``(7) Reporting requirement.--Not later than 90 days after
the date of completion of an early plant pest detection and
surveillance activity conducted by a State department of
agriculture using funds provided under this section, the
State department of agriculture shall submit to the Secretary
a report that describes the purposes and results of the
activities.
``(c) Threat Identification and Mitigation Program.--
``(1) Establishment.--The Secretary shall establish a
threat identification and mitigation program to determine and
address threats to the domestic production of crops.
``(2) Requirements.--In conducting the program established
under paragraph (1), the Secretary shall--
``(A) develop risk assessments of the potential threat to
the agricultural industry of the United States from foreign
sources;
``(B) collaborate with the National Plant Board; and
``(C) implement action plans for high consequence plant
pest and diseases to assist in preventing the introduction
and widespread dissemination of new plant pest and disease
threats in the United States.
``(3) Reports.--Not later than 1 year after the date of
enactment of this paragraph, and annually thereafter, the
Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report on the action
plans described in paragraph (2), including an accounting of
funds expended on the action plans.
``(d) Specialty Crop Certification and Risk Management
Systems.--The Secretary shall provide funds and technical
assistance to specialty crop growers, organizations
representing specialty crop growers, and State and local
agencies working with specialty crop growers and
organizations for the development and implementation of--
``(1) audit-based certification systems, such as best
management practices--
``(A) to address plant pests; and
``(B) to mitigate the risk of plant pests in the movement
of plants and plant products; and
``(2) nursery plant pest risk management systems, in
collaboration with the nursery industry, research
institutions, and other appropriate entities--
``(A) to enable growers to identify and prioritize nursery
plant pests and diseases of regulatory significance;
``(B) to prevent the introduction, establishment, and
spread of those plant pests and diseases; and
``(C) to reduce the risk of and mitigate those plant pests
and diseases.
``(e) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall make available to carry out
this section--
``(1) $12,000,000 for fiscal year 2009;
``(2) $45,000,000 for fiscal year 2010;
``(3) $50,000,000 for fiscal year 2011; and
``(4) $50,000,000 for fiscal year 2012 and each fiscal year
thereafter.''.
(b) Congressional Disapproval.--Congress disapproves the
rule submitted by the Secretary of Agriculture relating to
cost-sharing for animal and plant health emergency programs
(68 Fed. Reg. 40541 (2003)), and such rule shall have no
force or effect.
SEC. 10202. NATIONAL CLEAN PLANT NETWORK.
(a) In General.--The Secretary shall establish a program to
be known as the ``National Clean Plant Network'' (referred to
in this section as the ``Program'').
(b) Requirements.--Under the Program, the Secretary shall
establish a network of clean plant centers for diagnostic and
pathogen elimination services to--
(1) produce clean propagative plant material; and
(2) maintain blocks of pathogen-tested plant material in
sites located throughout the United States.
(c) Availability of Clean Plant Source Material.--Clean
plant source material may be made available to--
(1) a State for a certified plant program of the State; and
(2) private nurseries and producers.
(d) Consultation and Collaboration.--In carrying out the
Program, the Secretary shall--
(1) consult with State departments of agriculture, land
grant universities, and NLGCA Institutions (as defined in
section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103));
and
(2) to the extent practicable and with input from the
appropriate State officials and industry representatives, use
existing Federal or State facilities to serve as clean plant
centers.
(e) Funding.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out the Program
$5,000,000 for each of fiscal years 2009 through 2012, to
remain available until expended.
SEC. 10203. PLANT PROTECTION.
(a) Review of Payment of Compensation.--Section 415(e) of
the Plant Protection Act (7 U.S.C. 7715(e)) is amended in the
second sentence by striking ``of longer than 60 days''.
(b) Secretarial Discretion.--Section 442(c) of the Plant
Protection Act (7 U.S.C. 7772(c)) is amended by striking ``of
longer than 60 days''.
(c) Subpoena Authority.--Section 423 of the Plant
Protection Act (7 U.S.C. 7733) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) Authority to Issue.--The Secretary shall have the
power to subpoena the attendance and testimony of any
witness, the production of all evidence (including books,
papers, documents, electronically stored information, and
other tangible things that constitute or contain evidence),
or to require the person to whom the subpoena is directed to
permit the inspection of premises relating to the
administration or enforcement of this title or any matter
under investigation in connection with this title.'';
(2) in subsection (b), by striking ``documentary''; and
(3) in subsection (c)--
(A) in the first sentence, by striking ``testimony of any
witness and the production of documentary evidence'' and
inserting ``testimony of any witness, the production of
evidence, or the inspection of premises''; and
(B) in the second sentence, by striking ``question or to
produce documentary evidence'' and inserting ``question,
produce evidence, or permit the inspection of premises''.
(d) Willful Violations.--Section 424(b)(1)(A) of the Plant
Protection Act (7 U.S.C. 7734(b)(1)(A)) is amended by
striking ``and $500,000 for all violations adjudicated in a
single proceeding'' and inserting ``$500,000 for all
violations adjudicated in a single proceeding if the
violations do not include a willful violation, and $1,000,000
for all violations adjudicated in a single proceeding if the
violations include a willful violation''.
SEC. 10204. REGULATIONS TO IMPROVE MANAGEMENT AND OVERSIGHT
OF CERTAIN REGULATED ARTICLES.
(a) In General.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall--
(1) take action on each issue identified in the document
entitled ``Lessons Learned and Revisions under Consideration
for APHIS' Biotechnology Framework'', dated October 4, 2007;
and
(2) as the Secretary considers appropriate, promulgate
regulations to improve the management and oversight of
articles regulated under the Plant Protection Act (7 U.S.C.
7701 et seq.).
(b) Inclusions.--In carrying out subsection (a), the
Secretary shall take actions that are designed to enhance--
(1) the quality and completeness of records;
(2) the availability of representative samples;
(3) the maintenance of identity and control in the event of
an unauthorized release;
(4) corrective actions in the event of an unauthorized
release;
(5) protocols for conducting molecular forensics;
(6) clarity in contractual agreements;
(7) the use of the latest scientific techniques for
isolation and confinement distances;
(8) standards for quality management systems and effective
research; and
(9) the design of electronic permits to store documents and
other information relating to the permit and notification
processes.
(c) Consideration.--In carrying out subsection (a), the
Secretary shall consider--
(1) establishing--
(A) a system of risk-based categories to classify each
regulated article;
(B) a means to identify regulated articles (including the
retention of seed samples); and
(C) standards for isolation and containment distances; and
(2) requiring permit holders--
(A) to maintain a positive chain of custody;
(B) to provide for the maintenance of records;
(C) to provide for the accounting of material;
(D) to conduct periodic audits;
(E) to establish an appropriate training program;
(F) to provide contingency and corrective action plans; and
(G) to submit reports as the Secretary considers to be
appropriate.
SEC. 10205. PEST AND DISEASE REVOLVING LOAN FUND.
(a) Definitions.--In this section:
(1) Authorized equipment.--
(A) In general.--The term ``authorized equipment'' means
any equipment necessary for the management of forest land.
(B) Inclusions.--The term ``authorized equipment''
includes--
(i) cherry pickers;
(ii) equipment necessary for--
(I) the construction of staging and marshalling areas;
[[Page H4594]]
(II) the planting of trees; and
(III) the surveying of forest land;
(iii) vehicles capable of transporting harvested trees;
(iv) wood chippers; and
(v) any other appropriate equipment, as determined by the
Secretary.
(2) Fund.--The term ``Fund'' means the Pest and Disease
Revolving Loan Fund established by subsection (b).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture, acting through the Deputy Chief of the State
and Private Forestry organization.
(b) Establishment of Fund.--There is established in the
Treasury of the United States a revolving fund, to be known
as the ``Pest and Disease Revolving Loan Fund'', consisting
of such amounts as are appropriated to the Fund under
subsection (f).
(c) Expenditures From Fund.--
(1) In general.--Subject to paragraph (2), on request by
the Secretary, the Secretary of the Treasury shall transfer
from the Fund to the Secretary such amounts as the Secretary
determines are necessary to provide loans under subsection
(e).
(2) Administrative expenses.--An amount not exceeding 10
percent of the amounts in the Fund shall be available for
each fiscal year to pay the administrative expenses necessary
to carry out this section.
(d) Transfers of Amounts.--
(1) In general.--The amounts required to be transferred to
the Fund under this section shall be transferred at least
monthly from the general fund of the Treasury to the Fund on
the basis of estimates made by the Secretary of the Treasury.
(2) Adjustments.--Proper adjustment shall be made in
amounts subsequently transferred to the extent prior
estimates were in excess of or less than the amounts required
to be transferred.
(e) Uses of Fund.--
(1) Loans.--
(A) In general.--The Secretary shall use amounts in the
Fund to provide loans to eligible units of local government
to finance purchases of authorized equipment to monitor,
remove, dispose of, and replace infested trees that are
located--
(i) on land under the jurisdiction of the eligible units of
local government; and
(ii) within the borders of quarantine areas infested by
plant pests.
(B) Maximum amount.--The maximum amount of a loan that may
be provided by the Secretary to an eligible unit of local
government under this subsection shall be the lesser of--
(i) the amount that the eligible unit of local government
has appropriated to finance purchases of authorized equipment
in accordance with subparagraph (A); or
(ii) $5,000,000.
(C) Interest rate.--The interest rate on any loan made by
the Secretary under this paragraph shall be a rate equal to 2
percent.
(D) Report.--Not later than 180 days after the date on
which an eligible unit of local government receives a loan
provided by the Secretary under subparagraph (A), the
eligible unit of local government shall submit to the
Secretary a report that describes each purchase made by the
eligible unit of local government using assistance provided
through the loan.
(2) Loan repayment schedule.--
(A) In general.--To be eligible to receive a loan from the
Secretary under paragraph (1), in accordance with each
requirement described in subparagraph (B), an eligible unit
of local government shall enter into an agreement with the
Secretary to establish a loan repayment schedule relating to
the repayment of the loan.
(B) Requirements relating to loan repayment schedule.--A
loan repayment schedule established under subparagraph (A)
shall require the eligible unit of local government--
(i) to repay to the Secretary of the Treasury, not later
than 1 year after the date on which the eligible unit of
local government receives a loan under paragraph (1), and
semiannually thereafter, an amount equal to the quotient
obtained by dividing--
(I) the principal amount of the loan (including interest);
by
(II) the total quantity of payments that the eligible unit
of local government is required to make during the repayment
period of the loan; and
(ii) not later than 20 years after the date on which the
eligible unit of local government receives a loan under
paragraph (1), to complete repayment to the Secretary of the
Treasury of the loan made under this section (including
interest).
(f) Authorization of Appropriations.--There are authorized
to be appropriated to the Fund such sums as are necessary to
carry out this section.
SEC. 10206. COOPERATIVE AGREEMENTS RELATING TO PLANT PEST AND
DISEASE PREVENTION ACTIVITIES.
Section 431 of the Plant Protection Act (7 U.S.C. 7751) is
amended by adding at the end the following:
``(f) Transfer of Cooperative Agreement Fund.--
``(1) In general.--A State may provide to a unit of local
government in the State described in paragraph (2) any cost-
sharing assistance or financing mechanism provided to the
State under a cooperative agreement entered into under this
Act between the Secretary and the State relating to the
eradication, prevention, control, or suppression of plant
pests.
``(2) Requirements.--To be eligible for assistance or
financing under paragraph (1), a unit of local government
shall be--
``(A) engaged in any activity relating to the eradication,
prevention, control, or suppression of the plant pest
infestation covered under the cooperative agreement between
the Secretary and the State; and
``(B) capable of documenting each plant pest infestation
eradication, prevention, control, or suppression activity
generally carried out by--
``(i) the Department of Agriculture; or
``(ii) the State department of agriculture that has
jurisdiction over the unit of local government.''.
Subtitle C--Organic Agriculture
SEC. 10301. NATIONAL ORGANIC CERTIFICATION COST-SHARE
PROGRAM.
Section 10606 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 6523) is amended--
(1) in subsection (a), by striking ``$5,000,000 for fiscal
year 2002'' and inserting ``$22,000,000 for fiscal year
2008'';
(2) in subsection (b)(2), by striking ``$500'' and
inserting ``$750''; and
(3) by adding at the end the following:
``(c) Reporting.--Not later than March 1 of each year, the
Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report that describes
the requests by, disbursements to, and expenditures for each
State under the program during the current and previous
fiscal year, including the number of producers and handlers
served by the program in the previous fiscal year.''.
SEC. 10302. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.
Section 7407 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 5925c) is amended to read as follows:
``SEC. 7407. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.
``(a) In General.--The Secretary shall collect and report
data on the production and marketing of organic agricultural
products.
``(b) Requirements.--In carrying out subsection (a), the
Secretary shall, at a minimum--
``(1) collect and distribute comprehensive reporting of
prices relating to organically produced agricultural
products;
``(2) conduct surveys and analysis and publish reports
relating to organic production, handling, distribution,
retail, and trend studies (including consumer purchasing
patterns); and
``(3) develop surveys and report statistical analysis on
organically produced agricultural products.
``(c) Report.--Not later than 180 days after the date of
enactment of this subsection, the Secretary shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report that--
``(1) describes the progress that has been made in
implementing this section; and
``(2) identifies any additional production and marketing
data needs.
``(d) Funding.--
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use to carry out this
section $5,000,000, to remain available until expended.
``(2) Additional funding.--In addition to funds made
available under paragraph (1), there are authorized to be
appropriated to carry out this section not more than
$5,000,000 for each of fiscal years 2008 through 2012, to
remain available until expended.''.
SEC. 10303. NATIONAL ORGANIC PROGRAM.
Section 2123 of the Organic Foods Production Act of 1990 (7
U.S.C. 6522) is amended--
(1) by striking ``There are'' and inserting the following:
``(a) In General.--There are''; and
(2) by adding at the end the following:
``(b) National Organic Program.--Notwithstanding any other
provision of law, in order to carry out activities under the
national organic program established under this title, there
are authorized to be appropriated--
``(1) $5,000,000 for fiscal year 2008;
``(2) $6,500,000 for fiscal year 2009;
``(3) $8,000,000 for fiscal year 2010;
``(4) $9,500,000 for fiscal year 2011;
``(5) $11,000,000 for fiscal year 2012; and
``(6) in addition to those amounts, such additional sums as
are necessary for fiscal year 2009 and each fiscal year
thereafter.''.
Subtitle D--Miscellaneous
SEC. 10401. NATIONAL HONEY BOARD.
Section 7(c) of the Honey Research, Promotion, and Consumer
Information Act (7 U.S.C. 4606(c)) is amended by adding at
the end the following:
``(12) Referendum requirement.--
``(A) Definition of existing honey board.--The term
`existing Honey Board' means the Honey Board in effect on the
date of enactment of this paragraph.
``(B) Conduct of referenda.--Notwithstanding any other
provision of law, subject to subparagraph (C), the order
providing for the establishment and operation of the existing
Honey Board shall continue in force, until the Secretary
first conducts, at the earliest practicable date, but not
later than 180 days after the date of enactment of this
paragraph, referenda on orders to establish a honey packer-
importer board or a United States honey producer board.
``(C) Requirements.--In conducting referenda under
subparagraph (B), and in exercising fiduciary
responsibilities in any
[[Page H4595]]
transition to any 1 or more successor boards, the Secretary
shall--
``(i) conduct a referendum of eligible United States honey
producers for the establishment of a marketing board solely
for United States honey producers;
``(ii) conduct a referendum of eligible packers, importers,
and handlers of honey for the establishment of a marketing
board for packers, importers, and handlers of honey;
``(iii) notwithstanding the timing of the referenda
required under clauses (i) and (ii) or of the establishment
of any 1 or more successor boards pursuant to those
referenda, ensure that the rights and interests of honey
producers, importers, packers, and handlers of honey are
equitably protected in any disposition of the assets,
facilities, intellectual property, and programs of the
existing Honey Board and in the transition to any 1 or more
new successor marketing boards;
``(iv) ensure that the existing Honey Board continues in
operation until such time as the Secretary determines that--
``(I) any 1 or more successor boards, if approved, are
operational; and
``(II) the interests of producers, importers, packers, and
handlers of honey can be equitably protected during any
remaining period in which a referendum on a successor board
or the establishment of such a board is pending; and
``(v) discontinue collection of assessments under the order
establishing the existing Honey Board on the date the
Secretary requires that collections commence pursuant to an
order approved in a referendum by eligible producers or
processors and importers of honey.
``(D) Honey board referendum.--If 1 or more orders are
approved pursuant to paragraph (C)--
``(i) the Secretary shall not be required to conduct a
continuation referendum on the order in existence on the date
of enactment of this paragraph; and
``(ii) that order shall be terminated pursuant to the
provisions of the order.''.
SEC. 10402. IDENTIFICATION OF HONEY.
(a) In General.--Section 203(h) of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1622(h)) is amended--
(1) by designating the first through sixth sentences as
paragraphs (1), (2)(A), (2)(B), (3), (4), and (5),
respectively; and
(2) by adding at the end the following:
``(6) Identification of honey.--
``(A) In general.--The use of a label or advertising
material on, or in conjunction with, packaged honey that
bears any official certificate of quality, grade mark or
statement, continuous inspection mark or statement, sampling
mark or statement, or any combination of the certificates,
marks, or statements of the Department of Agriculture is
hereby prohibited under this Act unless there appears legibly
and permanently in close proximity (such as on the same
side(s) or surface(s)) to the certificate, mark, or
statement, and in at least a comparable size, the 1 or more
names of the 1 or more countries of origin of the lot or
container of honey, preceded by the words `Product of' or
other words of similar meaning.
``(B) Violation.--A violation of the requirements of
subparagraph (A) may be deemed by the Secretary to be
sufficient cause for debarment from the benefits of this Act
only with respect to honey.''.
(b) Effective Date.--The amendments made by subsection (a)
take effect on the date that is 1 year after the date of
enactment of this Act.
SEC. 10403. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY
CROPS.
(a) Grants Authorized.--The Secretary may make grants under
this section to an eligible entity described in subsection
(b)--
(1) to improve the cost-effective movement of specialty
crops to local, regional, national, and international
markets; and
(2) to address regional intermodal transportation
deficiencies that adversely affect the movement of specialty
crops to markets inside or outside the United States.
(b) Eligible Grant Recipients.--Grants may be made under
this section to any of, or any combination of:
(1) State and local governments.
(2) Grower cooperatives.
(3) National, State, or regional organizations of
producers, shippers, or carriers.
(4) Other entities as determined to be appropriate by the
Secretary.
(c) Matching Funds.--The recipient of a grant under this
section shall contribute an amount of non-Federal funds
toward the project for which the grant is provided that is at
least equal to the amount of grant funds received by the
recipient under this section.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as are
necessary for each of fiscal years 2008 through 2012.
SEC. 10404. MARKET LOSS ASSISTANCE FOR ASPARAGUS PRODUCERS.
(a) In General.--As soon as practicable after the date of
enactment of this Act, the Secretary shall make payments to
producers of the 2007 crop of asparagus for market loss
resulting from imports during the 2004 through 2007 crop
years.
(b) Payment Rate.--The payment rate for a payment under
this section shall be based on the reduction in revenue
received by asparagus producers associated with imports
during the 2004 through 2007 crop years.
(c) Payment Quantity.--The payment quantity for asparagus
for which the producers on a farm are eligible for payments
under this section shall be equal to the average quantity of
the 2003 crop of asparagus produced by producers on the farm.
(d) Funding.--
(1) In general.--Subject to paragraph (2), the Secretary
shall make available $15,000,000 of the funds of the
Commodity Credit Corporation to carry out a program to
provide market loss payments to producers of asparagus under
this section.
(2) Allocation.--Of the amount made available under
paragraph (1), the Secretary shall use--
(A) $7,500,000 to make payments to producers of asparagus
for the fresh market; and
(B) $7,500,000 to make payments to producers of asparagus
for the processed or frozen market.
TITLE XI--LIVESTOCK
SEC. 11001. LIVESTOCK MANDATORY REPORTING.
(a) Web Site Improvements and User Education.--
(1) In general.--Section 251(g) of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1636(g)) is amended to read
as follows:
``(g) Electronic Reporting and Publishing.--
``(1) In general.--The Secretary shall, to the maximum
extent practicable, provide for the reporting and publishing
of the information required under this subtitle by electronic
means.
``(2) Improvements and education.--
``(A) Enhanced electronic publishing.--The Secretary shall
develop and implement an enhanced system of electronic
publishing to disseminate information collected pursuant to
this subtitle. Such system shall--
``(i) present information in a format that can be readily
understood by producers, packers, and other market
participants;
``(ii) adhere to the publication deadlines in this
subtitle;
``(iii) present information in charts and graphs, as
appropriate;
``(iv) present comparative information for prior reporting
periods, as the Secretary considers appropriate; and
``(v) be updated as soon as practicable after information
is reported to the Secretary.
``(B) Education.--The Secretary shall carry out a market
news education program to educate the public and persons in
the livestock and meat industries about--
``(i) usage of the system developed under subparagraph (A);
and
``(ii) interpreting and understanding information collected
and disseminated through such system.''.
(2) Applicability.--
(A) Enhanced reporting.--The Secretary of Agriculture shall
develop and implement the system required under paragraph
(2)(A) of section 251(g) of the Agricultural Marketing Act of
1946 (7 U.S.C. 1636(g)), as amended by paragraph (1), not
later than one year after the date on which the Secretary
determines sufficient funds have been appropriated pursuant
to subsection (c).
(B) Current system.--Notwithstanding the amendment made by
paragraph (1), the Secretary shall continue to use the
information format for disseminating information under
subtitle B of the Agricultural Marketing Act of 1946 (7
U.S.C. 1621 et seq.) in effect on the date of the enactment
of this Act at least until the date that is two years after
the date on which the Secretary makes the determination
referred to in subparagraph (A).
(b) Study and Report.--
(1) Study.--The Secretary shall conduct a study on the
effects of requiring packer processing plants to report to
the Secretary information on wholesale pork cuts (including
price and volume information), including--
(A) the positive or negative economic effects on producers
and consumers; and
(B) the effects of a confidentiality requirement on
mandatory reporting.
(2) Information.--During the period preceding the
submission of the report under paragraph (3), the Secretary
may collect, and each packer processing plant shall provide,
such information as is necessary to enable the Secretary to
conduct the study required under paragraph (1).
(3) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report on the results of the study conducted under
paragraph (1).
(c) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this section.
SEC. 11002. COUNTRY OF ORIGIN LABELING.
Subtitle D of the Agricultural Marketing Act of 1946 (7
U.S.C. 1638 et seq.) is amended--
(1) in section 281(2)(A)--
(A) in clause (v), by striking ``and'';
(B) in clause (vi), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(vii) meat produced from goats;
``(viii) chicken, in whole and in part;
``(ix) ginseng;
``(x) pecans; and
``(xi) macadamia nuts.'';
(2) in section 282--
(A) in subsection (a), by striking paragraphs (2) and (3)
and inserting the following:
``(2) Designation of country of origin for beef, lamb,
pork, chicken, and goat meat.--
``(A) United states country of origin.--A retailer of a
covered commodity that is beef,
[[Page H4596]]
lamb, pork, chicken, or goat meat may designate the covered
commodity as exclusively having a United States country of
origin only if the covered commodity is derived from an
animal that was--
``(i) exclusively born, raised, and slaughtered in the
United States;
``(ii) born and raised in Alaska or Hawaii and transported
for a period of not more than 60 days through Canada to the
United States and slaughtered in the United States; or
``(iii) present in the United States on or before July 15,
2008, and once present in the United States, remained
continuously in the United States.
``(B) Multiple countries of origin.--
``(i) In general.--A retailer of a covered commodity that
is beef, lamb, pork, chicken, or goat meat that is derived
from an animal that is--
``(I) not exclusively born, raised, and slaughtered in the
United States,
``(II) born, raised, or slaughtered in the United States,
and
``(III) not imported into the United States for immediate
slaughter,
may designate the country of origin of such covered commodity
as all of the countries in which the animal may have been
born, raised, or slaughtered.
``(ii) Relation to general requirement.--Nothing in this
subparagraph alters the mandatory requirement to inform
consumers of the country of origin of covered commodities
under paragraph (1).
``(C) Imported for immediate slaughter.--A retailer of a
covered commodity that is beef, lamb, pork, chicken, or goat
meat that is derived from an animal that is imported into the
United States for immediate slaughter shall designate the
origin of such covered commodity as--
``(i) the country from which the animal was imported; and
``(ii) the United States.
``(D) Foreign country of origin.--A retailer of a covered
commodity that is beef, lamb, pork, chicken, or goat meat
that is derived from an animal that is not born, raised, or
slaughtered in the United States shall designate a country
other than the United States as the country of origin of such
commodity.
``(E) Ground beef, pork, lamb, chicken, and goat.--The
notice of country of origin for ground beef, ground pork,
ground lamb, ground chicken, or ground goat shall include--
``(i) a list of all countries of origin of such ground
beef, ground pork, ground lamb, ground chicken, or ground
goat; or
``(ii) a list of all reasonably possible countries of
origin of such ground beef, ground pork, ground lamb, ground
chicken, or ground goat.
``(3) Designation of country of origin for fish.--
``(A) In general.--A retailer of a covered commodity that
is farm-raised fish or wild fish may designate the covered
commodity as having a United States country of origin only if
the covered commodity--
``(i) in the case of farm-raised fish, is hatched, raised,
harvested, and processed in the United States; and
``(ii) in the case of wild fish, is--
``(I) harvested in the United States, a territory of the
United States, or a State, or by a vessel that is documented
under chapter 121 of title 46, United States Code, or
registered in the United States; and
``(II) processed in the United States, a territory of the
United States, or a State, including the waters thereof, or
aboard a vessel that is documented under chapter 121 of title
46, United States Code, or registered in the United States.
``(B) Designation of wild fish and farm-raised fish.--The
notice of country of origin for wild fish and farm-raised
fish shall distinguish between wild fish and farm-raised
fish.
``(4) Designation of country of origin for perishable
agricultural commodities, ginseng, peanuts, pecans, and
macadamia nuts.--
``(A) In general.--A retailer of a covered commodity that
is a perishable agricultural commodity, ginseng, peanut,
pecan, or macadamia nut may designate the covered commodity
as having a United States country of origin only if the
covered commodity is exclusively produced in the United
States.
``(B) State, region, locality of the united states.--With
respect to a covered commodity that is a perishable
agricultural commodity, ginseng, peanut, pecan, or macadamia
nut produced exclusively in the United States, designation by
a retailer of the State, region, or locality of the United
States where such commodity was produced shall be sufficient
to identify the United States as the country of origin.'';
and
(B) by striking subsection (d) and inserting the following:
``(d) Audit Verification System.--
``(1) In general.--The Secretary may conduct an audit of
any person that prepares, stores, handles, or distributes a
covered commodity for retail sale to verify compliance with
this subtitle (including the regulations promulgated under
section 284(b)).
``(2) Record requirements.--
``(A) In general.--A person subject to an audit under
paragraph (1) shall provide the Secretary with verification
of the country of origin of covered commodities. Records
maintained in the course of the normal conduct of the
business of such person, including animal health papers,
import or customs documents, or producer affidavits, may
serve as such verification.
``(B) Prohibition on requirement of additional records.--
The Secretary may not require a person that prepares, stores,
handles, or distributes a covered commodity to maintain a
record of the country of origin of a covered commodity other
than those maintained in the course of the normal conduct of
the business of such person.''; and
(3) in section 283--
(A) by striking subsections (a) and (c);
(B) by redesignating subsection (b) as subsection (a);
(C) in subsection (a) (as so redesignated), by striking
``retailer'' and inserting ``retailer or person engaged in
the business of supplying a covered commodity to a
retailer''; and
(D) by adding at the end the following new subsection:
``(b) Fines.--If, on completion of the 30-day period
described in subsection (a)(2), the Secretary determines that
the retailer or person engaged in the business of supplying a
covered commodity to a retailer has--
``(1) not made a good faith effort to comply with section
282, and
``(2) continues to willfully violate section 282 with
respect to the violation about which the retailer or person
received notification under subsection (a)(1),
after providing notice and an opportunity for a hearing
before the Secretary with respect to the violation, the
Secretary may fine the retailer or person in an amount of not
more than $1,000 for each violation.''.
SEC. 11003. AGRICULTURAL FAIR PRACTICES ACT OF 1967
DEFINITIONS.
Section 3 of the Agricultural Fair Practices Act of 1967 (7
U.S.C. 2302) is amended--
(1) by striking ``When used in this Act--'' and inserting
``In this Act:'';
(2) in subsection (a)--
(A) by redesignating paragraphs (1) through (4) as clauses
(i) through (iv), respectively; and
(B) in clause (iv) (as so redesignated), by striking
``clause (1), (2), or (3) of this paragraph'' and inserting
``clause (i), (ii), or (iii)'';
(3) by striking subsection (d);
(4) by redesignating subsections (a), (b), (c), and (e) as
paragraphs (3), (4), (2), (1), respectively, indenting
appropriately, and moving those paragraphs so as to appear in
numerical order;
(5) in each paragraph (as so redesignated) that does not
have a heading, by inserting a heading, in the same style as
the heading in the amendment made by paragraph (6), the text
of which is comprised of the term defined in the paragraph;
(6) in paragraph (2) (as so redesignated)--
(A) by striking ``The term `association of producers'
means'' and inserting the following:
``(2) Association of producers.--
``(A) In general.--The term `association of producers'
means''; and
(B) by adding at the end the following:
``(B) Inclusion.--The term `association of producers'
includes an organization whose membership is exclusively
limited to agricultural producers and dedicated to promoting
the common interest and general welfare of producers of
agricultural products.''; and
(7) in paragraph (3) (as so redesignated)--
(A) by striking ``The term'' and inserting the following:
``(3) Handler.--
``(A) In general.--The term''; and
(B) by inserting after clause (iv) of subparagraph (A) (as
redesignated by subparagraph (A) and paragraph (2)) the
following:
``(B) Exclusion.--The term `handler' does not include a
person, other than a packer (as defined in section 201 of the
Packers and Stockyards Act, 1921 (7 U.S.C. 191)), that
provides custom feeding services for a producer.''.
SEC. 11004. ANNUAL REPORT.
(a) In General.--The Packers and Stockyards Act, 1921, is
amended--
(1) by redesignating section 416 (7 U.S.C. 229) as section
417; and
(2) by inserting after section 415 (7 U.S.C. 228d) the
following:
``SEC. 416. ANNUAL REPORT.
``(a) In General.--Not later than March 1 of each year, the
Secretary shall submit to Congress and make publicly
available a report that--
``(1) states, for the preceding year, separately for
livestock and poultry and separately by enforcement area
category (financial, trade practice, or competitive acts and
practices), with respect to investigations into possible
violations of this Act--
``(A) the number of investigations opened;
``(B) the number of investigations that were closed or
settled without a referral to the General Counsel of the
Department of Agriculture;
``(C) for investigations described in subparagraph (B), the
length of time from initiation of the investigation to when
the investigation was closed or settled without the filing of
an enforcement complaint;
``(D) the number of investigations that resulted in
referral to the General Counsel of the Department of
Agriculture for further action, the number of such referrals
resolved without administrative enforcement action, and the
number of enforcement actions filed by the General Counsel;
``(E) for referrals to the General Counsel that resulted in
an administrative enforcement action being filed, the length
of time from the referral to the filing of the administrative
action;
[[Page H4597]]
``(F) for referrals to the General Counsel that resulted in
an administrative enforcement action being filed, the length
of time from filing to resolution of the administrative
enforcement action;
``(G) the number of investigations that resulted in
referral to the Department of Justice for further action, and
the number of civil enforcement actions filed by the
Department of Justice on behalf of the Secretary pursuant to
such a referral;
``(H) for referrals that resulted in a civil enforcement
action being filed by the Department of Justice, the length
of time from the referral to the filing of the enforcement
action;
``(I) for referrals that resulted in a civil enforcement
action being filed by the Department of Justice, the length
of time from the filing of the enforcement action to
resolution; and
``(J) the average civil penalty imposed in administrative
or civil enforcement actions for violations of this Act, and
the total amount of civil penalties imposed in all such
enforcement actions; and
``(2) includes any other additional information the
Secretary considers important to include in the annual
report.
``(b) Format of Information Provided.--For subparagraphs
(C), (E), (F), and (H) of subsection (a)(1), the Secretary
may, if appropriate due to the number of complaints for a
given category, provide summary statistics (including range,
maximum, minimum, mean, and average times) and graphical
representations.''.
(b) Sunset.--Effective September 30, 2012, section 416 of
the Packers and Stockyards Act, 1921, as added by subsection
(a)(2), is repealed.
SEC. 11005. PRODUCTION CONTRACTS.
Title II of the Packers and Stockyards Act, 1921 (7 U.S.C.
198 et seq.) is amended by adding at the end the following:
``SEC. 208. PRODUCTION CONTRACTS.
``(a) Right of Contract Producers to Cancel Production
Contracts.--
``(1) In general.--A poultry grower or swine production
contract grower may cancel a poultry growing arrangement or
swine production contract by mailing a cancellation notice to
the live poultry dealer or swine contractor not later than
the later of--
``(A) the date that is 3 business days after the date on
which the poultry growing arrangement or swine production
contract is executed; or
``(B) any cancellation date specified in the poultry
growing arrangement or swine production contract.
``(2) Disclosure.--A poultry growing arrangement or swine
production contract shall clearly disclose--
``(A) the right of the poultry grower or swine production
contract grower to cancel the poultry growing arrangement or
swine production contract;
``(B) the method by which the poultry grower or swine
production contract grower may cancel the poultry growing
arrangement or swine production contract; and
``(C) the deadline for canceling the poultry growing
arrangement or swine production contract.
``(b) Required Disclosure of Additional Capital Investments
in Production Contracts.--
``(1) In general.--A poultry growing arrangement or swine
production contract shall contain on the first page a
statement identified as `Additional Capital Investments
Disclosure Statement', which shall conspicuously state that
additional large capital investments may be required of the
poultry grower or swine production contract grower during the
term of the poultry growing arrangement or swine production
contract.
``(2) Application.--Paragraph (1) shall apply to any
poultry growing arrangement or swine production contract
entered into, amended, altered, modified, renewed, or
extended after the date of the enactment of this section.
``SEC. 209. CHOICE OF LAW AND VENUE.
``(a) Location of Forum.--The forum for resolving any
dispute among the parties to a poultry growing arrangement or
swine production or marketing contract that arises out of the
arrangement or contract shall be located in the Federal
judicial district in which the principle part of the
performance takes place under the arrangement or contract.
``(b) Choice of Law.--A poultry growing arrangement or
swine production or marketing contract may specify which
State's law is to apply to issues governed by State law in
any dispute arising out of the arrangement or contract,
except to the extent that doing so is prohibited by the law
of the State in which the principal part of the performance
takes place under the arrangement or contract.
``SEC. 210. ARBITRATION.
``(a) In General.--Any livestock or poultry contract that
contains a provision requiring the use of arbitration to
resolve any controversy that may arise under the contract
shall contain a provision that allows a producer or grower,
prior to entering the contract to decline to be bound by the
arbitration provision.
``(b) Disclosure.--Any livestock or poultry contract that
contains a provision requiring the use of arbitration shall
contain terms that conspicuously disclose the right of the
contract producer or grower, prior to entering the contract,
to decline the requirement to use arbitration to resolve any
controversy that may arise under the livestock or poultry
contract.
``(c) Dispute Resolution.--Any contract producer or grower
that declines a requirement of arbitration pursuant to
subsection (b) has the right, to nonetheless seek to resolve
any controversy that may arise under the livestock or poultry
contract, if, after the controversy arises, both parties
consent in writing to use arbitration to settle the
controversy.
``(d) Application.--Subsections (a) (b) and (c) shall apply
to any contract entered into, amended, altered, modified,
renewed, or extended after the date of the enactment of the
Food, Conservation, and Energy Act of 2008 .
``(e) Unlawful Practice.--Any action by or on behalf of a
packer, swine contractor, or live poultry dealer that
violates this section (including any action that has the
intent or effect of limiting the ability of a producer or
grower to freely make a choice described in subsection (b))
is an unlawful practice under this Act.
``(f) Regulations.--The Secretary shall promulgate
regulations to--
``(1) carry out this section; and
``(2) establish criteria that the Secretary will consider
in determining whether the arbitration process provided in a
contract provides a meaningful opportunity for the grower or
producer to participate fully in the arbitration process.''.
SEC. 11006. REGULATIONS.
As soon as practicable, but not later than 2 years after
the date of the enactment of this Act, the Secretary of
Agriculture shall promulgate regulations with respect to the
Packers and Stockyards Act, 1921 (7 U.S.C. 181 et seq.) to
establish criteria that the Secretary will consider in
determining--
(1) whether an undue or unreasonable preference or
advantage has occurred in violation of such Act;
(2) whether a live poultry dealer has provided reasonable
notice to poultry growers of any suspension of the delivery
of birds under a poultry growing arrangement;
(3) when a requirement of additional capital investments
over the life of a poultry growing arrangement or swine
production contract constitutes a violation of such Act; and
(4) if a live poultry dealer or swine contractor has
provided a reasonable period of time for a poultry grower or
a swine production contract grower to remedy a breach of
contract that could lead to termination of the poultry
growing arrangement or swine production contract.
SEC. 11007. SENSE OF CONGRESS REGARDING PSEUDORABIES
ERADICATION PROGRAM.
It is the sense of Congress that--
(1) the Secretary of Agriculture should recognize the
threat feral swine pose to the domestic swine population and
the entire livestock industry;
(2) keeping the United States commercial swine herd free of
pseudorabies is essential to maintaining and growing pork
export markets;
(3) the establishment and continued support of a swine
surveillance system will assist the swine industry in the
monitoring, surveillance, and eradication of pseudorabies;
and
(4) pseudorabies eradication is a high priority that the
Secretary should carry out under the authorities of the
Animal Health Protection Act.
SEC. 11008. SENSE OF CONGRESS REGARDING THE CATTLE FEVER TICK
ERADICATION PROGRAM.
It is the sense of Congress that--
(1) the cattle fever tick and the southern cattle tick are
vectors of the causal agent of babesiosis, a severe and often
fatal disease of cattle; and
(2) implementing a national strategic plan for the cattle
fever tick eradication program is a high priority that the
Secretary of Agriculture should carry out in order to--
(A) prevent the entry of cattle fever ticks into the United
States;
(B) enhance and maintain an effective surveillance program
to rapidly detect any cattle fever tick incursions; and
(C) research, identify, and procure the tools and knowledge
necessary to prevent and eradicate cattle fever ticks in the
United States.
SEC. 11009. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.
(a) Funding.--Section 375(e)(6) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2008j(e)(6)) is amended
by striking subparagraphs (B) and (C) and inserting the
following:
``(B) Mandatory funding.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use to carry out this
section $1,000,000 for fiscal year 2008, to remain available
until expended.
``(C) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$10,000,000 for each of fiscal years 2008 through 2012.''.
(b) Repeal of Requirement To Privatize Revolving Fund.--
(1) In general.--Section 375 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2008j) is amended by striking
subsection (j).
(2) Effective date.--The amendment made by paragraph (1)
takes effect on May 1, 2007.
SEC. 11010. TRICHINAE CERTIFICATION PROGRAM.
(a) Voluntary Trichinae Certification.--
(1) Establishment.--Not later than 90 days after the date
of the enactment of this Act,
[[Page H4598]]
the Secretary of Agriculture shall establish a voluntary
trichinae certification program. Such program shall include
the facilitation of the export of pork products and
certification services related to such products.
(2) Regulations.--The Secretary shall issue final
regulations to implement the program under paragraph (1) not
later than 90 days after the date of the enactment of this
Act.
(3) Report.--If final regulations are not published in
accordance with paragraph (2) within 90 days of the date of
the enactment of this Act, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report containing--
(A) an explanation of why the final regulations have not
been issued in accordance with paragraph (2); and
(B) the date on which the Secretary expects to issue such
final regulations.
(b) Funding.--Subject to the availability of appropriations
under subsection (d)(1)(A) of section 10405 of the Animal
Health Protection Act (7 U.S.C. 8304), as added by subsection
(c), the Secretary shall use not less than $6,200,000 of the
funds made available under such subsection to carry out
subsection (a).
(c) Authorization of Appropriations.--Section 10405 of the
Animal Health Protection Act (7 U.S.C. 8304) is amended by
adding at the end the following new subsection:
``(d) Authorization of Appropriations.--
``(1) In general.--There is authorized to be appropriated--
``(A) $1,500,000 for each of fiscal years 2008 through 2012
to carry out section 11010 of the Food, Conservation, and
Energy Act of 2008; and
``(B) such sums as may be necessary for each of fiscal
years 2008 through 2012 to carry out this section.
``(2) Availability.--Funds appropriated under paragraph (1)
shall remain available until expended.''.
SEC. 11011. LOW PATHOGENIC DISEASES.
The Animal Health Protection Act (7 U.S.C. 8301 et seq.) is
amended--
(1) in section 10407(d)(2)(C) (7 U.S.C. 8306(d)(2)(C)), by
striking ``of longer than 60 days'';
(2) in section 10409(b) (7 U.S.C. 8308(b))--
(A) by redesignating paragraph (2) as paragraph (3);
(B) by inserting after paragraph (1) the following new
paragraph:
``(2) Specific cooperative programs.--The Secretary shall
compensate industry participants and State agencies that
cooperate with the Secretary in carrying out operations and
measures under subsection (a) for 100 percent of eligible
costs relating to cooperative programs involving Federal,
State, and industry participants to control diseases of low
pathogenicity in accordance with regulations issued by the
Secretary.''; and
(C) in paragraph (3) (as so redesignated), by striking ``of
longer than 60 days''; and
(3) in section 10417(b)(3) (7 U.S.C. 8316(b)(3)), by
striking ``of longer than 60 days''.
SEC. 11012. ANIMAL PROTECTION.
(a) Willful Violations.--Section 10414(b)(1)(A) of the
Animal Health Protection Act (7 U.S.C. 8316(b)(1)(A)) is
amended by striking clause (iii) and inserting the following:
``(iii) for all violations adjudicated in a single
proceeding--
``(I) $500,000 if the violations do not include a willful
violation; or
``(II) $1,000,000 if the violations include 1 or more
willful violations.''.
(b) Subpoena Authority.--Section 10415(a)(2) of the Animal
Health Protection Act (7 U.S.C. 8314) is amended
(1) by striking subparagraph (A) and inserting the
following:
``(A) In general.--The Secretary shall have the power to
subpoena the attendance and testimony of any witness, the
production of all evidence (including books, papers,
documents, electronically stored information, and other
tangible things that constitute or contain evidence), or to
require the person to whom the subpoena is directed to permit
the inspection of premises relating to the administration or
enforcement of this title or any matter under investigation
in connection with this title.'';
(2) in subparagraph (B), by striking ``documentary''; and
(3) in subparagraph (C)--
(A) in clause (i), by striking ``testimony of any witness
and the production of documentary evidence'' and inserting
``testimony of any witness, the production of evidence, or
the inspection of premises''; and
(B) in clause (ii), by striking ``question or to produce
documentary evidence'' and inserting ``question, produce
evidence, or permit the inspection of premises''.
SEC. 11013. NATIONAL AQUATIC ANIMAL HEALTH PLAN.
(a) In General.--The Secretary of Agriculture may enter
into a cooperative agreement with an eligible entity to carry
out a project under a national aquatic animal health plan
under the authority of the Secretary under section 10411 of
the Animal Health Protection Act (7 U.S.C. 8310) for the
purpose of detecting, controlling, or eradicating diseases of
aquaculture species and promoting species-specific best
management practices.
(b) Cooperative Agreements Between Eligible Entities and
the Secretary.--
(1) Duties.--As a condition of entering into a cooperative
agreement with the Secretary under this section, an eligible
entity shall agree to--
(A) assume responsibility for the non-Federal share of the
cost of carrying out the project under the national aquatic
health plan, as determined by the Secretary in accordance
with paragraph (2); and
(B) act in accordance with applicable disease and species
specific best management practices relating to activities to
be carried out under such project.
(2) Non-federal share.--The Secretary shall determine the
non-Federal share of the cost of carrying out a project under
the national aquatic health plan on a case-by-case basis for
each such project. Such non-Federal share may be provided in
cash or in-kind.
(c) Applicability of Other Laws.--In carrying out this
section, the Secretary may make use of the authorities under
the Animal Health Protection Act (7 U.S.C. 8301 et seq.),
including the authority to carry out operations and measures
to detect, control, and eradicate pests and diseases and the
authority to pay claims arising out of the destruction of any
animal, article, or means of conveyance.
(d) Authorization of Appropriations.--There is authorized
to be appropriated such sums as may be necessary to carry out
this section for each of fiscal years 2008 through 2012.
(e) Eligible Entity Defined.--In this section, the term
``eligible entity'' means a State, a political subdivision of
a State, Indian tribe, or other appropriate entity, as
determined by the Secretary of Agriculture.
SEC. 11014. STUDY ON BIOENERGY OPERATIONS.
(a) Study.--The Secretary of Agriculture shall conduct a
study to evaluate the role of animal manure as a source of
fertilizer and its potential additional uses. Such study
shall include--
(1) a determination of the extent to which animal manure is
utilized as fertilizer in agricultural operations by type
(including species and agronomic practices employed) and
size;
(2) an evaluation of the potential impact on consumers and
on agricultural operations (by size) resulting from
limitations being placed on the utilization of animal manure
as fertilizer; and
(3) an evaluation of the effects on agriculture production
contributable to the increased competition for animal manure
use due to bioenergy production, including as a feedstock or
a replacement for fossil fuels.
(b) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate the results of the study conducted under subsection
(a).
SEC. 11015. INTERSTATE SHIPMENT OF MEAT AND POULTRY INSPECTED
BY FEDERAL AND STATE AGENCIES FOR CERTAIN SMALL
ESTABLISHMENTS.
(a) Meat and Meat Products.--The Federal Meat Inspection
Act (21 U.S.C. 601 et seq.) is amended by adding at the end
the following:
``TITLE V--INSPECTIONS BY FEDERAL AND STATE AGENCIES
``SEC. 501. INTERSTATE SHIPMENT OF MEAT INSPECTED BY FEDERAL
AND STATE AGENCIES FOR CERTAIN SMALL
ESTABLISHMENTS.
``(a) Definitions.--
``(1) Appropriate state agency.--The term `appropriate
State agency' means a State agency described in section
301(b).
``(2) Designated personnel.--The term `designated
personnel' means inspection personnel of a State agency that
have undergone all necessary inspection training and
certification to assist the Secretary in the administration
and enforcement of this Act, including rules and regulations
issued under this Act.
``(3) Eligible establishment.--The term `eligible
establishment' means an establishment that is in compliance
with--
``(A) the State inspection program of the State in which
the establishment is located; and
``(B) this Act, including rules and regulations issued
under this Act.
``(4) Meat item.--The term `meat item' means--
``(A) a portion of meat; and
``(B) a meat food product.
``(5) Selected establishment.--The term `selected
establishment' means an eligible establishment that is
selected by the Secretary, in coordination with the
appropriate State agency of the State in which the eligible
establishment is located, under subsection (b) to ship
carcasses, portions of carcasses, and meat items in
interstate commerce.
``(b) Authority of Secretary to Allow Shipments.--
``(1) In general.--Subject to paragraph (2), the Secretary,
in coordination with the appropriate State agency of the
State in which an establishment is located, may select the
establishment to ship carcasses, portions of carcasses, and
meat items in interstate commerce, and place on each carcass,
portion of a carcass, and meat item shipped in interstate
commerce a Federal mark, stamp, tag, or label of inspection,
if--
``(A) the carcass, portion of carcass, or meat item
qualifies for the mark, stamp, tag, or label of inspection
under the requirements of this Act;
``(B) the establishment is an eligible establishment; and
``(C) inspection services for the establishment are
provided by designated personnel.
[[Page H4599]]
``(2) Prohibited establishments.--In carrying out paragraph
(1), the Secretary, in coordination with an appropriate State
agency, shall not select an establishment that--
``(A) on average, employs more than 25 employees (including
supervisory and nonsupervisory employees), as defined by the
Secretary;
``(B) as of the date of the enactment of this section,
ships in interstate commerce carcasses, portions of
carcasses, or meat items that are inspected by the Secretary
in accordance with this Act;
``(C)(i) is a Federal establishment;
``(ii) was a Federal establishment that was reorganized on
a later date under the same name or a different name or
person by the person, firm, or corporation that controlled
the establishment as of the date of the enactment of this
section; or
``(iii) was a State establishment as of the date of the
enactment of this section that--
``(I) as of the date of the enactment of this section,
employed more than 25 employees; and
``(II) was reorganized on a later date by the person, firm,
or corporation that controlled the establishment as of the
date of the enactment of this section;
``(D) is in violation of this Act;
``(E) is located in a State that does not have a State
inspection program; or
``(F) is the subject of a transition carried out in
accordance with a procedure developed by the Secretary under
paragraph (3)(A).
``(3) Establishments that employ more than 25 employees.--
``(A) Development of procedure.--The Secretary may develop
a procedure to transition to a Federal establishment any
establishment under this section that, on average,
consistently employs more than 25 employees.
``(B) Eligibility of certain establishments.--
``(i) In general.--A State establishment that employs more
than 25 employees but less than 35 employees as of the date
of the enactment of this section may be selected as a
selected establishment under this subsection.
``(ii) Procedures.--A State establishment shall be subject
to the procedures established under subparagraph (A)
beginning on the date that is 3 years after the effective
date described in subsection (j).
``(c) Reimbursement of State Costs.--The Secretary shall
reimburse a State for costs related to the inspection of
selected establishments in the State in accordance with
Federal requirements in an amount of not less than 60 percent
of eligible State costs.
``(d) Coordination Between Federal and State Agencies.--
``(1) In general.--The Secretary shall designate an
employee of the Federal Government as State coordinator for
each appropriate State agency--
``(A) to provide oversight and enforcement of this title;
and
``(B) to oversee the training and inspection activities of
designated personnel of the State agency.
``(2) Supervision.--A State coordinator shall be under the
direct supervision of the Secretary.
``(3) Duties of state coordinator.--
``(A) In general.--A State coordinator shall visit selected
establishments with a frequency that is appropriate to ensure
that selected establishments are operating in a manner that
is consistent with this Act (including regulations and
policies under this Act).
``(B) Quarterly reports.--A State coordinator shall, on a
quarterly basis, submit to the Secretary a report that
describes the status of each selected establishment that is
under the jurisdiction of the State coordinator with respect
to the level of compliance of each selected establishment
with the requirements of this Act.
``(C) Immediate notification requirement.--If a State
coordinator determines that any selected establishment that
is under the jurisdiction of the State coordinator is in
violation of any requirement of this Act, the State
coordinator shall--
``(i) immediately notify the Secretary of the violation;
and
``(ii) deselect the selected establishment or suspend
inspection at the selected establishment.
``(4) Performance evaluations.--Performance evaluations of
State coordinators designated under this subsection shall be
conducted by the Secretary as part of the Federal agency
management control system.
``(e) Audits.--
``(1) Periodic audits conducted by inspector general of the
department of agriculture.--Not later than 2 years after the
effective date described in subsection (j), and not less
often than every 3 years thereafter, the Inspector General of
the Department of Agriculture shall conduct an audit of each
activity taken by the Secretary under this section for the
period covered by the audit to determine compliance with this
section.
``(2) Audit conducted by comptroller general of the united
states.--Not earlier than 3 years, nor later than 5 years,
after the date of the enactment of this section, the
Comptroller General of the United States shall conduct an
audit of the implementation of this section to determine--
``(A) the effectiveness of the implementation of this
section; and
``(B) the number of selected establishments selected by the
Secretary to ship carcasses, portions of carcasses, or meat
items under this section.
``(f) Technical Assistance Division.--
``(1) Establishment.--Not later than 180 days after the
effective date described in subsection (j), the Secretary
shall establish in the Food Safety and Inspection Service of
the Department of Agriculture a technical assistance division
to coordinate the initiatives of any other appropriate agency
of the Department of Agriculture to provide--
``(A) outreach, education, and training to very small or
certain small establishments (as defined by the Secretary);
and
``(B) grants to appropriate State agencies to provide
outreach, technical assistance, education, and training to
very small or certain small establishments (as defined by the
Secretary).
``(2) Personnel.--The technical assistance division shall
be comprised of individuals that, as determined by the
Secretary--
``(A) are of a quantity sufficient to carry out the duties
of the technical assistance division; and
``(B) possess appropriate qualifications and expertise
relating to the duties of the technical assistance division.
``(g) Transition Grants.--The Secretary may provide grants
to appropriate State agencies to assist the appropriate State
agencies in helping establishments covered by title III to
transition to selected establishments.
``(h) Violations.--Any selected establishment that the
Secretary determines to be in violation of any requirement of
this Act shall be transitioned to a Federal establishment in
accordance with a procedure developed by the Secretary under
subsection (b)(3)(A).
``(i) Effect.--Nothing in this section limits the
jurisdiction of the Secretary with respect to the regulation
of meat and meat products under this Act.
``(j) Effective Date.--
``(1) In general.--This section takes effect on the date on
which the Secretary, after providing a period of public
comment (including through the conduct of public meetings or
hearings), promulgates final regulations to carry out this
section.
``(2) Requirement.--Not later than 18 months after the date
of the enactment of this section, the Secretary shall
promulgate final regulations in accordance with paragraph
(1).''.
(b) Poultry and Poultry Products.--The Poultry Products
Inspection Act (21 U.S.C. 451 et seq.) is amended by adding
at the end the following:
``SEC. 31. INTERSTATE SHIPMENT OF POULTRY INSPECTED BY
FEDERAL AND STATE AGENCIES FOR CERTAIN SMALL
ESTABLISHMENTS.
``(a) Definitions.--
``(1) Appropriate state agency.--The term `appropriate
State agency' means a State agency described in section
5(a)(1).
``(2) Designated personnel.--The term `designated
personnel' means inspection personnel of a State agency that
have undergone all necessary inspection training and
certification to assist the Secretary in the administration
and enforcement of this Act, including rules and regulations
issued under this Act.
``(3) Eligible establishment.--The term `eligible
establishment' means an establishment that is in compliance
with--
``(A) the State inspection program of the State in which
the establishment is located; and
``(B) this Act, including rules and regulations issued
under this Act.
``(4) Poultry item.--The term `poultry item' means--
``(A) a portion of poultry; and
``(B) a poultry product.
``(5) Selected establishment.--The term `selected
establishment' means an eligible establishment that is
selected by the Secretary, in coordination with the
appropriate State agency of the State in which the eligible
establishment is located, under subsection (b) to ship
poultry items in interstate commerce.
``(b) Authority of Secretary to Allow Shipments.--
``(1) In general.--Subject to paragraph (2), the Secretary,
in coordination with the appropriate State agency of the
State in which an establishment is located, may select the
establishment to ship poultry items in interstate commerce,
and place on each poultry item shipped in interstate commerce
a Federal mark, stamp, tag, or label of inspection, if--
``(A) the poultry item qualifies for the Federal mark,
stamp, tag, or label of inspection under the requirements of
this Act;
``(B) the establishment is an eligible establishment; and
``(C) inspection services for the establishment are
provided by designated personnel.
``(2) Prohibited establishments.--In carrying out paragraph
(1), the Secretary, in coordination with an appropriate State
agency, shall not select an establishment that--
``(A) on average, employs more than 25 employees (including
supervisory and nonsupervisory employees), as defined by the
Secretary;
``(B) as of the date of the enactment of this section,
ships in interstate commerce carcasses, portions of
carcasses, or poultry items that are inspected by the
Secretary in accordance with this Act;
``(C)(i) is a Federal establishment;
``(ii) was a Federal establishment as of the date of the
enactment of this section, and was reorganized on a later
date under the same name or a different name or person by
[[Page H4600]]
the person, firm, or corporation that controlled the
establishment as of the date of the enactment of this
section; or
``(iii) was a State establishment as of the date of the
enactment of this section that--
``(I) as of the date of the enactment of this section,
employed more than 25 employees; and
``(II) was reorganized on a later date by the person, firm,
or corporation that controlled the establishment as of the
date of the enactment of this section;
``(D) is in violation of this Act;
``(E) is located in a State that does not have a State
inspection program; or
``(F) is the subject of a transition carried out in
accordance with a procedure developed by the Secretary under
paragraph (3)(A).
``(3) Establishments that employ more than 25 employees.--
``(A) Development of procedure.--The Secretary may develop
a procedure to transition to a Federal establishment any
establishment under this section that, on average,
consistently employs more than 25 employees.
``(B) Eligibility of certain establishments.--
``(i) In general.--A State establishment that employs more
than 25 employees but less than 35 employees as of the date
of the enactment of this section may be selected as a
selected establishment under this subsection.
``(ii) Procedures.--A State establishment shall be subject
to the procedures established under subparagraph (A)
beginning on the date that is 3 years after the effective
date described in subsection (i).
``(c) Reimbursement of State Costs.--The Secretary shall
reimburse a State for costs related to the inspection of
selected establishments in the State in accordance with
Federal requirements in an amount of not less than 60 percent
of eligible State costs.
``(d) Coordination Between Federal and State Agencies.--
``(1) In general.--The Secretary shall designate an
employee of the Federal Government as State coordinator for
each appropriate State agency--
``(A) to provide oversight and enforcement of this section;
and
``(B) to oversee the training and inspection activities of
designated personnel of the State agency.
``(2) Supervision.--A State coordinator shall be under the
direct supervision of the Secretary.
``(3) Duties of state coordinator.--
``(A) In general.--A State coordinator shall visit selected
establishments with a frequency that is appropriate to ensure
that selected establishments are operating in a manner that
is consistent with this Act (including regulations and
policies under this Act).
``(B) Quarterly reports.--A State coordinator shall, on a
quarterly basis, submit to the Secretary a report that
describes the status of each selected establishment that is
under the jurisdiction of the State coordinator with respect
to the level of compliance of each selected establishment
with the requirements of this Act.
``(C) Immediate notification requirement.--If a State
coordinator determines that any selected establishment that
is under the jurisdiction of the State coordinator is in
violation of any requirement of this Act, the State
coordinator shall--
``(i) immediately notify the Secretary of the violation;
and
``(ii) deselect the selected establishment or suspend
inspection at the selected establishment.
``(4) Performance evaluations.--Performance evaluations of
State coordinators designated under this subsection shall be
conducted by the Secretary as part of the Federal agency
management control system.
``(e) Audits.--
``(1) Periodic audits conducted by inspector general of the
department of agriculture.--Not later than 2 years after the
effective date described in subsection (i), and not less
often than every 3 years thereafter, the Inspector General of
the Department of Agriculture shall conduct an audit of each
activity taken by the Secretary under this section for the
period covered by the audit to determine compliance with this
section.
``(2) Audit conducted by comptroller general of the united
states.--Not earlier than 3 years, nor later than 5 years,
after the date of the enactment of this section, the
Comptroller General of the United States shall conduct an
audit of the implementation of this section to determine--
``(A) the effectiveness of the implementation of this
section; and
``(B) the number of selected establishments selected by the
Secretary to ship poultry items under this section.
``(f) Transition Grants.--The Secretary may provide grants
to appropriate State agencies to assist the appropriate State
agencies in helping establishments covered by this Act to
transition to selected establishments.
``(g) Violations.--Any selected establishment that the
Secretary determines to be in violation of any requirement of
this Act shall be transitioned to a Federal establishment in
accordance with a procedure developed by the Secretary under
subsection (b)(3)(A).
``(h) Effect.--Nothing in this section limits the
jurisdiction of the Secretary with respect to the regulation
of poultry and poultry products under this Act.
``(i) Effective Date.--
``(1) In general.--This section takes effect on the date on
which the Secretary, after providing a period of public
comment (including through the conduct of public meetings or
hearings), promulgates final regulations to carry out this
section.
``(2) Requirement.--Not later than 18 months after the date
of the enactment of this section, the Secretary shall
promulgate final regulations in accordance with paragraph
(1).''.
SEC. 11016. INSPECTION AND GRADING.
(a) Grading.--Section 203 of the Agricultural Marketing Act
of 1946 (7 U.S.C. 1622) is amended--
(1) by redesignating subsection (n) as subsection (o); and
(2) by inserting after subsection (m) the following new
subsection:
``(n) Grading Program.--To establish within the Department
of Agriculture a voluntary fee based grading program for--
``(1) catfish (as defined by the Secretary under paragraph
(2) of section 1(w) of the Federal Meat Inspection Act (21
U.S.C. 601(w))); and
``(2) any additional species of farm-raised fish or farm-
raised shellfish--
``(A) for which the Secretary receives a petition
requesting such voluntary fee based grading; and
``(B) that the Secretary considers appropriate.''.
(b) Inspection.--
(1) In general.--The Federal Meat Inspection Act is
amended--
(A) in section 1(w) (21 U.S.C. 601(w))--
(i) by striking ``and'' at the end of paragraph (1);
(ii) by redesignating paragraph (2) as paragraph (3); and
(iii) by inserting after paragraph (1) the following new
paragraph:
``(2) catfish, as defined by the Secretary; and'';
(B) by striking section 6 (21 U.S.C. 606) and inserting the
following new section:
``Sec. 6. (a) In General.--For the purposes hereinbefore
set forth the Secretary shall cause to be made, by inspectors
appointed for that purpose, an examination and inspection of
all meat food products prepared for commerce in any
slaughtering, meat-canning, salting, packing, rendering, or
similar establishment, and for the purposes of any
examination and inspection and inspectors shall have access
at all times, by day or night, whether the establishment be
operated or not, to every part of said establishment; and
said inspectors shall mark, stamp, tag, or label as
`Inspected and passed' all such products found to be not
adulterated; and said inspectors shall label, mark, stamp, or
tag as `Inspected and condemned' all such products found
adulterated, and all such condemned meat food products shall
be destroyed for food purposes, as hereinbefore provided, and
the Secretary may remove inspectors from any establishment
which fails to so destroy such condemned meat food products:
Provided, That subject to the rules and regulations of the
Secretary the provisions of this section in regard to
preservatives shall not apply to meat food products for
export to any foreign country and which are prepared or
packed according to the specifications or directions of the
foreign purchaser, when no substance is used in the
preparation or packing thereof in conflict with the laws of
the foreign country to which said article is to be exported;
but if said article shall be in fact sold or offered for sale
for domestic use or consumption then this proviso shall not
exempt said article from the operation of all the other
provisions of this chapter.
``(b) Catfish.--In the case of an examination and
inspection under subsection (a) of a meat food product
derived from catfish, the Secretary shall take into account
the conditions under which the catfish is raised and
transported to a processing establishment.''; and
(C) by adding at the end of title I the following new
section:
``Sec. 25. Notwithstanding any other provision of this
Act, the requirements of sections 3, 4, 5, 10(b), and 23
shall not apply to catfish.''.
(2) Effective date.--
(A) In general.--The amendments made by paragraph (1) shall
not apply until the date on which the Secretary of
Agriculture issues final regulations (after providing a
period of public comment, including through the conduct of
public meetings or hearings, in accordance with chapter 5 of
title 5, United States Code) to carry out such amendments.
(B) Regulations.--Not later than 18 months after the date
of the enactment of this Act, the Secretary of Agriculture,
in consultation with the Commissioner of Food and Drugs,
shall issue final regulations to carry out the amendments
made by paragraph (1).
(3) Budget request.--Not later than 30 days after the date
of the enactment of this Act, the Secretary of Agriculture
shall submit to Congress an estimate of the costs of
implementing the amendments made by paragraph (1), including
the estimated--
(A) staff years;
(B) number of establishments;
(C) volume expected to be produced at such establishments;
and
(D) any other information used in estimating the costs of
implementing such amendments.
[[Page H4601]]
SEC. 11017. FOOD SAFETY IMPROVEMENT.
(a) Federal Meat Inspection Act.--Title I of the Federal
Meat Inspection Act is further amended by inserting after
section 11 (21 U.S.C. 611) the following:
``SEC. 12. NOTIFICATION.
``Any establishment subject to inspection under this Act
that believes, or has reason to believe, that an adulterated
or misbranded meat or meat food product received by or
originating from the establishment has entered into commerce
shall promptly notify the Secretary with regard to the type,
amount, origin, and destination of the meat or meat food
product.
``SEC. 13. PLANS AND REASSESSMENTS.
``The Secretary shall require that each establishment
subject to inspection under this Act shall, at a minimum--
``(1) prepare and maintain current procedures for the
recall of all meat or meat food products produced and shipped
by the establishment;
``(2) document each reassessment of the process control
plans of the establishment; and
``(3) upon request, make the procedures and reassessed
process control plans available to inspectors appointed by
the Secretary for review and copying.''.
(b) Poultry Products Inspection Act.--Section 10 of the
Poultry Products Inspection Act (21 U.S.C. 459) is amended--
(1) by striking the section heading and all that follows
through ``SEC. 10. No establishment'' and inserting the
following:
``SEC. 10. COMPLIANCE BY ALL ESTABLISHMENTS.
``(a) In General.--No establishment''; and
(2) by adding at the end the following:
``(b) Notification.--Any establishment subject to
inspection under this Act that believes, or has reason to
believe, that an adulterated or misbranded poultry or poultry
product received by or originating from the establishment has
entered into commerce shall promptly notify the Secretary
with regard to the type, amount, origin, and destination of
the poultry or poultry product.
``(c) Plans and Reassessments.--The Secretary shall require
that each establishment subject to inspection under this Act
shall, at a minimum--
``(1) prepare and maintain current procedures for the
recall of all poultry or poultry products produced and
shipped by the establishment;
``(2) document each reassessment of the process control
plans of the establishment; and
``(3) upon request, make the procedures and reassessed
process control plans available to inspectors appointed by
the Secretary for review and copying.''.
TITLE XII--CROP INSURANCE AND DISASTER ASSISTANCE PROGRAMS
Subtitle A--Crop Insurance and Agricultural Disaster Assistance
SEC. 12001. DEFINITION OF ORGANIC CROP.
Section 502(b) of the Federal Crop Insurance Act (7 U.S.C.
1502(b)) is amended--
(1) by redesignating paragraphs (7) and (8) as paragraphs
(8) and (9), respectively; and
(2) by inserting after paragraph (6) the following:
``(7) Organic crop.--The term `organic crop' means an
agricultural commodity that is organically produced
consistent with section 2103 of the Organic Foods Production
Act of 1990 (7 U.S.C. 6502).''.
SEC. 12002. GENERAL POWERS.
(a) In General.--Section 506 of the Federal Crop Insurance
Act (7 U.S.C. 1506) is amended--
(1) in the first sentence of subsection (d), by striking
``The Corporation'' and inserting ``Subject to section
508(j)(2)(A), the Corporation''; and
(2) by striking subsection (n).
(b) Conforming Amendments.--
(1) Section 506 of the Federal Crop Insurance Act (7 U.S.C.
1506) is amended by redesignating subsections (o), (p), and
(q) as subsections (n), (o), and (p), respectively.
(2) Section 521 of the Federal Crop Insurance Act (7 U.S.C.
1521) is amended by striking the last sentence.
SEC. 12003. REDUCTION IN LOSS RATIO.
(a) Projected Loss Ratio.--Subsection (n)(2) of section 506
of the Federal Crop Insurance Act (7 U.S.C. 1506) (as
redesignated by section 12002(b)(1)) is amended--
(1) in the paragraph heading, by striking ``as of october
1, 1998'';
(2) by striking ``, on and after October 1, 1998,''; and
(3) by striking ``1.075'' and inserting ``1.0''.
(b) Premiums Required.--Section 508(d)(1) of the Federal
Crop Insurance Act (7 U.S.C. 1508(d)(1)) is amended by
striking ``not greater than 1.1'' and all that follows and
inserting ``not greater than--
``(A) 1.1 through September 30, 1998;
``(B) 1.075 for the period beginning October 1, 1998, and
ending on the day before the date of enactment of the Food,
Conservation, and Energy Act of 2008; and
``(C) 1.0 on and after the date of enactment of that
Act.''.
SEC. 12004. PREMIUMS ADJUSTMENTS.
Section 508(a) of the Federal Crop Insurance Act (7 U.S.C.
1508(a)) is amended by adding at the end the following:
``(9) Premium adjustments.--
``(A) Prohibition.--Except as provided in subparagraph (B),
no person shall pay, allow, or give, or offer to pay, allow,
or give, directly or indirectly, either as an inducement to
procure insurance or after insurance has been procured, any
rebate, discount, abatement, credit, or reduction of the
premium named in an insurance policy or any other valuable
consideration or inducement not specified in the policy.
``(B) Exceptions.--Subparagraph (A) does not apply with
respect to--
``(i) a payment authorized under subsection (b)(5)(B);
``(ii) a performance-based discount authorized under
subsection (d)(3); or
``(iii) a patronage dividend, or similar payment, that is
paid--
``(I) by an entity that was approved by the Corporation to
make such payments for the 2005, 2006, or 2007 reinsurance
year, in accordance with subsection (b)(5)(B) as in effect on
the day before the date of enactment of this paragraph; and
``(II) in a manner consistent with the payment plan
approved in accordance with that subsection for the entity by
the Corporation for the applicable reinsurance year.''.
SEC. 12005. CONTROLLED BUSINESS INSURANCE.
Section 508(a) of the Federal Crop Insurance Act (7 U.S.C.
1508(a)) (as amended by section 12004) is amended by adding
at the end the following:
``(10) Commissions.--
``(A) Definition of immediate family.--In this paragraph,
the term `immediate family' means an individual's father,
mother, stepfather, stepmother, brother, sister, stepbrother,
stepsister, son, daughter, stepson, stepdaughter,
grandparent, grandson, granddaughter, father-in-law, mother-
in-law, brother-in-law, sister-in-law, son-in-law, daughter-
in-law, the spouse of the foregoing, and the individual's
spouse.
``(B) Prohibition.--No individual (including a subagent)
may receive directly, or indirectly through an entity, any
compensation (including any commission, profit sharing,
bonus, or any other direct or indirect benefit) for the sale
or service of a policy or plan of insurance offered under
this title if--
``(i) the individual has a substantial beneficial interest,
or a member of the individual's immediate family has a
substantial beneficial interest, in the policy or plan of
insurance; and
``(ii) the total compensation to be paid to the individual
with respect to the sale or service of the policies or plans
of insurance that meet the condition described in clause (i)
exceeds 30 percent or the percentage specified in State law,
whichever is less, of the total of all compensation received
directly or indirectly by the individual for the sale or
service of all policies and plans of insurance offered under
this title for the reinsurance year.
``(C) Reporting.--Not later than 90 days after the annual
settlement date of the reinsurance year, any individual that
received directly or indirectly any compensation for the
service or sale of any policy or plan of insurance offered
under this title in the prior reinsurance year shall certify
to applicable approved insurance providers that the
compensation that the individual received was in compliance
with this paragraph.
``(D) Sanctions.--The procedural requirements and sanctions
prescribed in section 515(h) shall apply to the prosecution
of a violation of this paragraph.
``(E) Applicability.--
``(i) In general.--Sanctions for violations under this
paragraph shall only apply to the individuals or entities
directly responsible for the certification required under
subparagraph (C) or the failure to comply with the
requirements of this paragraph.
``(ii) Prohibition.--No sanctions shall apply with respect
to the policy or plans of insurance upon which compensation
is received, including the reinsurance for those policies or
plans.''.
SEC. 12006. ADMINISTRATIVE FEE.
(a) In General.--Section 508(b)(5) of the Federal Crop
Insurance Act (7 U.S.C. 1508(b)(5)) is amended--
(1) by striking subparagraph (A) and inserting the
following:
``(A) Basic fee.--Each producer shall pay an administrative
fee for catastrophic risk protection in the amount of $300
per crop per county.''; and
(2) in subparagraph (B)--
(A) by striking ``PAYMENT ON BEHALF OF PRODUCERS'' and
inserting ``PAYMENT OF CATASTROPHIC RISK PROTECTION FEE ON
BEHALF OF PRODUCERS'';
(B) in clause (i)--
(i) by striking ``or other payment''; and
(ii) by striking ``with catastrophic risk protection or
additional coverage'' and inserting ``through the payment of
catastrophic risk protection administrative fees'';
(C) by striking clauses (ii) and (vi);
(D) by redesignating clauses (iii), (iv), and (v) as
clauses (ii), (iii), and (iv), respectively;
(E) in clause (iii) (as so redesignated), by striking ``A
policy or plan of insurance'' and inserting ``Catastrophic
risk protection coverage''; and
(F) in clause (iv) (as so redesignated)--
(i) by striking ``or other arrangement under this
subparagraph''; and
(ii) by striking ``additional''.
(b) Repeal.--Section 748 of the Agriculture, Rural
Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 1999 (7 U.S.C. 1508 note; Public
Law 105-277) is repealed.
SEC. 12007. TIME FOR PAYMENT.
Section 508 of the Federal Crop Insurance Act (7 U.S.C.
1508) is amended--
(1) in subsection (b)(5)(C), by striking ``the date that
premium'' and inserting ``the same date on which the
premium'';
[[Page H4602]]
(2) in subsection (c)(10), by adding at the end the
following:
``(C) Time for payment.--Subsection (b)(5)(C) shall apply
with respect to the collection date for the administrative
fee.''; and
(3) in subsection (d), by adding at the end the following:
``(4) Billing date for premiums.--Effective beginning with
the 2012 reinsurance year, the Corporation shall establish
August 15 as the billing date for premiums.''.
SEC. 12008. CATASTROPHIC COVERAGE REIMBURSEMENT RATE.
Section 508(b)(11) of the Federal Crop Insurance Act (7
U.S.C. 1508(b)(11)) is amended by striking ``8 percent'' and
inserting ``6 percent''.
SEC. 12009. GRAIN SORGHUM PRICE ELECTION.
Section 508(c)(5) of the Federal Crop Insurance Act (7
U.S.C. 1508(c)(5)) is amended by adding at the end the
following:
``(D) Grain sorghum price election.--
``(i) In general.--The Corporation, in conjunction with the
Secretary (referred to in this subparagraph as the
`Corporation'), shall--
``(I) not later than 60 days after the date of enactment of
this subparagraph, make available all methods and data,
including data from the Economic Research Service, used by
the Corporation to develop the expected market prices for
grain sorghum under the production and revenue-based plans of
insurance of the Corporation; and
``(II) request applicable data from the grain sorghum
industry.
``(ii) Expert reviewers.--
``(I) In general.--Not later than 120 days after the date
of enactment of this subparagraph, the Corporation shall
contract individually with 5 expert reviewers described in
subclause (II) to develop and recommend a methodology for
determining an expected market price for sorghum for both the
production and revenue-based plans of insurance to more
accurately reflect the actual price at harvest.
``(II) Requirements.--The expert reviewers under subclause
(I) shall be comprised of agricultural economists with
experience in grain sorghum and corn markets, of whom--
``(aa) 2 shall be agricultural economists of institutions
of higher education;
``(bb) 2 shall be economists from within the Department;
and
``(cc) 1 shall be an economist nominated by the grain
sorghum industry.
``(iii) Recommendations.--
``(I) In general.--Not later than 90 days after the date of
contracting with the expert reviewers under clause (ii), the
expert reviewers shall submit, and the Corporation shall make
available to the public, the recommendations of the expert
reviewers.
``(II) Consideration.--The Corporation shall consider the
recommendations under subclause (I) when determining the
appropriate pricing methodology to determine the expected
market price for grain sorghum under both the production and
revenue-based plans of insurance.
``(III) Publication.--Not later than 60 days after the date
on which the Corporation receives the recommendations of the
expert reviewers, the Corporation shall publish the proposed
pricing methodology for both the production and revenue-based
plans of insurance for notice and comment and, during the
comment period, conduct at least 1 public meeting to discuss
the proposed pricing methodologies.
``(iv) Appropriate pricing methodology.--
``(I) In general.--Not later than 180 days after the close
of the comment period in clause (iii)(III), but effective not
later than the 2010 crop year, the Corporation shall
implement a pricing methodology for grain sorghum under the
production and revenue-based plans of insurance that is
transparent and replicable.
``(II) Interim methodology.--Until the date on which the
new pricing methodology is implemented, the Corporation may
continue to use the pricing methodology that the Corporation
determines best establishes the expected market price.
``(III) Availability.--On an annual basis, the Corporation
shall make available the pricing methodology and data used to
determine the expected market prices for grain sorghum under
the production and revenue-based plans of insurance,
including any changes to the methodology used to determine
the expected market prices for grain sorghum from the
previous year.''.
SEC. 12010. PREMIUM REDUCTION AUTHORITY.
Subsection 508(e) of the Federal Crop Insurance Act (7
U.S.C. 1508(e)) is amended--
(1) in paragraph (2), by striking ``paragraph (4)'' and
inserting ``paragraph (3)'';
(2) by striking paragraph (3); and
(3) by redesignating paragraphs (4) and (5) as paragraphs
(3) and (4), respectively.
SEC. 12011. ENTERPRISE AND WHOLE FARM UNITS.
Section 508(e) of Federal Crop Insurance Act (7 U.S.C.
1508(e)) (as amended by section 12010) is amended by adding
at the end the following:
``(5) Enterprise and whole farm units.--
``(A) In general.--The Corporation may carry out a pilot
program under which the Corporation pays a portion of the
premiums for plans or policies of insurance for which the
insurable unit is defined on a whole farm or enterprise unit
basis that is higher than would otherwise be paid in
accordance with paragraph (2).
``(B) Amount.--The percentage of the premium paid by the
Corporation to a policyholder for a policy with an enterprise
or whole farm unit under this paragraph shall, to the maximum
extent practicable, provide the same dollar amount of premium
subsidy per acre that would otherwise have been paid by the
Corporation under paragraph (2) if the policyholder had
purchased a basic or optional unit for the crop for the crop
year.
``(C) Limitation.--The amount of the premium paid by the
Corporation under this paragraph may not exceed 80 percent of
the total premium for the enterprise or whole farm unit
policy.''.
SEC. 12012. PAYMENT OF PORTION OF PREMIUM FOR AREA REVENUE
PLANS.
Section 508(e) of the Federal Crop Insurance Act (7 U.S.C.
1508(e)) (as amended by section 12011) is amended--
(1) in paragraph (2), in the matter preceding subparagraph
(A), by striking ``paragraph (4)'' and inserting ``paragraphs
(4), (6), and (7)''; and
(2) by adding at the end the following:
``(6) Premium subsidy for area revenue plans.--Subject to
paragraph (4), in the case of a policy or plan of insurance
that covers losses due to a reduction in revenue in an area,
the amount of the premium paid by the Corporation shall be as
follows:
``(A) In the case of additional area coverage equal to or
greater than 70 percent, but less than 75 percent, of the
recorded county yield indemnified at not greater than 100
percent of the expected market price, the amount shall be
equal to the sum of--
``(i) 59 percent of the amount of the premium established
under subsection (d)(2)(B)(i) for the coverage level
selected; and
``(ii) the amount determined under subsection (d)(2)(B)(ii)
for the coverage level selected to cover operating and
administrative expenses.
``(B) In the case of additional area coverage equal to or
greater than 75 percent, but less than 85 percent, of the
recorded county yield indemnified at not greater than 100
percent of the expected market price, the amount shall be
equal to the sum of--
``(i) 55 percent of the amount of the premium established
under subsection (d)(2)(B)(i) for the coverage level
selected; and
``(ii) the amount determined under subsection (d)(2)(B)(ii)
for the coverage level selected to cover operating and
administrative expenses.
``(C) In the case of additional area coverage equal to or
greater than 85 percent, but less than 90 percent, of the
recorded county yield indemnified at not greater than 100
percent of the expected market price, the amount shall be
equal to the sum of--
``(i) 49 percent of the amount of the premium established
under subsection (d)(2)(B)(i) for the coverage level
selected; and
``(ii) the amount determined under subsection (d)(2)(B)(ii)
for the coverage level selected to cover operating and
administrative expenses.
``(D) In the case of additional area coverage equal to or
greater than 90 percent of the recorded county yield
indemnified at not greater than 100 percent of the expected
market price, the amount shall be equal to the sum of--
``(i) 44 percent of the amount of the premium established
under subsection (d)(2)(B)(i) for the coverage level
selected; and
``(ii) the amount determined under subsection (d)(2)(B)(ii)
for the coverage level selected to cover operating and
administrative expenses.
``(7) Premium subsidy for area yield plans.--Subject to
paragraph (4), in the case of a policy or plan of insurance
that covers losses due to a loss of yield or prevented
planting in an area, the amount of the premium paid by the
Corporation shall be as follows:
``(A) In the case of additional area coverage equal to or
greater than 70 percent, but less than 80 percent, of the
recorded county yield indemnified at not greater than 100
percent of the expected market price, the amount shall be
equal to the sum of--
``(i) 59 percent of the amount of the premium established
under subsection (d)(2)(B)(i) for the coverage level
selected; and
``(ii) the amount determined under subsection (d)(2)(B)(ii)
for the coverage level selected to cover operating and
administrative expenses.
``(B) In the case of additional area coverage equal to or
greater than 80 percent, but less than 90 percent, of the
recorded county yield indemnified at not greater than 100
percent of the expected market price, the amount shall be
equal to the sum of--
``(i) 55 percent of the amount of the premium established
under subsection (d)(2)(B)(i) for the coverage level
selected; and
``(ii) the amount determined under subsection (d)(2)(B)(ii)
for the coverage level selected to cover operating and
administrative expenses.
``(C) In the case of additional area coverage equal to or
greater than 90 percent, of the recorded county yield
indemnified at not greater than 100 percent of the expected
market price, the amount shall be equal to the sum of--
``(i) 51 percent of the amount of the premium established
under subsection (d)(2)(B)(i) for the coverage level
selected; and
[[Page H4603]]
``(ii) the amount determined under subsection (d)(2)(B)(ii)
for the coverage level selected to cover operating and
administrative expenses.''.
SEC. 12013. DENIAL OF CLAIMS.
Section 508(j)(2)(A) of the Federal Crop Insurance Act (7
U.S.C. 1508(j)(2)(A)) is amended by inserting ``on behalf of
the Corporation'' after ``approved provider''.
SEC. 12014. SETTLEMENT OF CROP INSURANCE CLAIMS ON FARM-
STORED PRODUCTION.
(a) In General.--Section 508(j) of the Federal Crop
Insurance Act (7 U.S.C. 1508(j)) is amended by adding at the
end the following:
``(5) Settlement of claims on farm-stored production.--A
producer with farm-stored production may, at the option of
the producer, delay settlement of a crop insurance claim
relating to the farm-stored production for up to 4 months
after the last date on which claims may be submitted under
the policy of insurance.''.
(b) Study on the Efficacy of Pack Factors.--
(1) In general.--The Secretary shall conduct a study of the
efficacy and accuracy of the application of pack factors
regarding the measurement of farm-stored production for
purposes of providing policies or plans of insurance under
the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
(2) Considerations.--The study shall consider--
(A) structural shape and size;
(B) time in storage;
(C) the impact of facility aeration systems; and
(D) any other factors the Secretary considers appropriate.
(3) Report.--Not later than 3 years after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report that includes the findings of the study and
any related policy recommendations.
SEC. 12015. TIME FOR REIMBURSEMENT.
Section 508(k)(4) of the Federal Crop Insurance Act (7
U.S.C. 1508(k)(4)) is amended by adding at the end the
following:
``(D) Time for reimbursement.--Effective beginning with the
2012 reinsurance year, the Corporation shall reimburse
approved insurance providers and agents for the allowable
administrative and operating costs of the providers and
agents as soon as practicable after October 1 (but not later
than October 31) after the reinsurance year for which
reimbursements are earned.''.
SEC. 12016. REIMBURSEMENT RATE.
Section 508(k)(4) of the Federal Crop Insurance Act (7
U.S.C. 1508(k)(4)) (as amended by section 12015) is amended--
(1) in subparagraph (A), by striking ``Except as provided
in subparagraph (B)'' and inserting ``Except as otherwise
provided in this paragraph''; and
(2) by adding at the end the following:
``(E) Reimbursement rate reduction.--In the case of a
policy of additional coverage that received a rate of
reimbursement for administrative and operating costs for the
2008 reinsurance year, for each of the 2009 and subsequent
reinsurance years, the reimbursement rate for administrative
and operating costs shall be 2.3 percentage points below the
rates in effect as of the date of enactment of the Food,
Conservation, and Energy Act of 2008 for all crop insurance
policies used to define loss ratio, except that only \1/2\ of
the reduction shall apply in a reinsurance year to the total
premium written in a State in which the State loss ratio is
greater than 1.2.
``(F) Reimbursement rate for area policies and plans of
insurance.--Notwithstanding subparagraphs (A) through (E),
for each of the 2009 and subsequent reinsurance years, the
reimbursement rate for area policies and plans of insurance
widely available as of the date of enactment of this
subparagraph shall be 12 percent of the premium used to
define loss ratio for that reinsurance year.''.
SEC. 12017. RENEGOTIATION OF STANDARD REINSURANCE AGREEMENT.
Section 508(k) of the Federal Crop Insurance Act (7 U.S.C.
1508(k)) is amended by adding at the end the following:
``(8) Renegotiation of standard reinsurance agreement.--
``(A) In general.--Except as provided in subparagraph (B),
notwithstanding section 536 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7 U.S.C. 1506
note; Public Law 105-185) and section 148 of the Agricultural
Risk Protection Act of 2000 (7 U.S.C. 1506 note; Public Law
106-224), the Corporation may renegotiate the financial terms
and conditions of each Standard Reinsurance Agreement--
``(i) to be effective for the 2011 reinsurance year
beginning July 1, 2010; and
``(ii) once during each period of 5 reinsurance years
thereafter.
``(B) Exceptions.--
``(i) Adverse circumstances.--Subject to clause (ii),
subparagraph (A) shall not apply in any case in which the
approved insurance providers, as a whole, experience
unexpected adverse circumstances, as determined by the
Secretary.
``(ii) Effect of federal law changes.--If Federal law is
enacted after the date of enactment of this paragraph that
requires revisions in the financial terms of the Standard
Reinsurance Agreement, and changes in the Agreement are made
on a mandatory basis by the Corporation, the changes shall
not be considered to be a renegotiation of the Agreement for
purposes of subparagraph (A).
``(C) Notification requirement.--If the Corporation
renegotiates a Standard Reinsurance Agreement under
subparagraph (A)(iii), the Corporation shall notify the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate of the renegotiation.
``(D) Consultation.--The approved insurance providers may
confer with each other and collectively with the Corporation
during any renegotiation under subparagraph (A).
``(E) 2011 reinsurance year.--
``(i) In general.--As part of the Standard Reinsurance
Agreement renegotiation authorized under subparagraph (A)(i),
the Corporation shall consider alternative methods to
determine reimbursement rates for administrative and
operating costs.
``(ii) Alternative methods.--Alternatives considered under
clause (i) shall include--
``(I) methods that--
``(aa) are graduated and base reimbursement rates in a
State on changes in premiums in that State;
``(bb) are graduated and base reimbursement rates in a
State on the loss ratio for crop insurance for that State;
and
``(cc) are graduated and base reimbursement rates on
individual policies on the level of total premium for each
policy; and
``(II) any other method that takes into account current
financial conditions of the program and ensures continued
availability of the program to producers on a nationwide
basis.''.
SEC. 12018. CHANGE IN DUE DATE FOR CORPORATION PAYMENTS FOR
UNDERWRITING GAINS.
Section 508(k) of the Federal Crop Insurance Act (7 U.S.C.
1508(k)) (as amended by section 12017) is amended by adding
at the end the following:
``(9) Due date for payment of underwriting gains.--
Effective beginning with the 2011 reinsurance year, the
Corporation shall make payments for underwriting gains under
this title on--
``(A) for the 2011 reinsurance year, October 1, 2012; and
``(B) for each reinsurance year thereafter, October 1 of
the following calendar year.''.
SEC. 12019. MALTING BARLEY.
Section 508(m) of the Federal Crop Insurance Act (7 U.S.C.
1508(m)) is amended by adding at the end the following:
``(5) Special provisions for malting barley.--The
Corporation shall promulgate special provisions under this
subsection specific to malting barley, taking into
consideration any changes in quality factors, as required by
applicable market conditions.''.
SEC. 12020. CROP PRODUCTION ON NATIVE SOD.
(a) Federal Crop Insurance.--Section 508 of the Federal
Crop Insurance Act (7 U.S.C. 1508) is amended by adding at
the end the following:
``(o) Crop Production on Native Sod.--
``(1) Definition of native sod.--In this subsection, the
term `native sod' means land--
``(A) on which the plant cover is composed principally of
native grasses, grasslike plants, forbs, or shrubs suitable
for grazing and browsing; and
``(B) that has never been tilled for the production of an
annual crop as of the date of enactment of this subsection.
``(2) Ineligibility for benefits.--
``(A) In general.--Subject to subparagraph (B) and
paragraph (3), native sod acreage that has been tilled for
the production of an annual crop after the date of enactment
of this subsection shall be ineligible during the first 5
crop years of planting, as determined by the Secretary, for
benefits under--
``(i) this title; and
``(ii) section 196 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7333).
``(B) De minimis acreage exemption.--The Secretary shall
exempt areas of 5 acres or less from subparagraph (A).
``(3) Application.--Paragraph (2) may apply to native sod
acreage in the Prairie Pothole National Priority Area at the
election of the Governor of the respective State.''.
(b) Noninsured Crop Disaster Assistance.--Section 196(a) of
the Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7333(a)) is amended by adding at the end the
following:
``(4) Program ineligibility relating to crop production on
native sod.--
``(A) Definition of native sod.--In this paragraph, the
term `native sod' means land--
``(i) on which the plant cover is composed principally of
native grasses, grasslike plants, forbs, or shrubs suitable
for grazing and browsing; and
``(ii) that has never been tilled for the production of an
annual crop as of the date of enactment of this paragraph.
``(B) Ineligibility for benefits.--
``(i) In general.--Subject to clause (ii) and subparagraph
(C), native sod acreage that has been tilled for the
production of an annual crop after the date of enactment of
this paragraph shall be ineligible during the first 5 crop
years of planting, as determined by the Secretary, for
benefits under--
``(I) this section; and
``(II) the Federal Crop Insurance Act (7 U.S.C. 1501 et
seq.).
``(ii) De minimis acreage exemption.--The Secretary shall
exempt areas of 5 acres or less from clause (i).
``(C) Application.--Subparagraph (B) may apply to native
sod acreage in the Prairie
[[Page H4604]]
Pothole National Priority Area at the election of the
Governor of the respective State.''.
SEC. 12021. INFORMATION MANAGEMENT.
Section 515 of the Federal Crop Insurance Act (7 U.S.C.
1515) is amended--
(a) in subsection (j)(3), by adding before the period at
the end the following: ``, which shall be subject to
competition on a periodic basis, as determined by the
Secretary''; and
(b) by striking subsection (k) and inserting the following:
``(k) Funding.--
``(1) Information technology.--To carry out subsection
(j)(1), the Corporation may use, from amounts made available
from the insurance fund established under section 516(c), not
more than $15,000,000 for each of fiscal years 2008 through
2011.
``(2) Data mining.--To carry out subsection (j)(2), the
Corporation may use, from amounts made available from the
insurance fund established under section 516(c), not more
than $4,000,000 for fiscal year 2009 and each subsequent
fiscal year.''.
SEC. 12022. RESEARCH AND DEVELOPMENT.
(a) In General.--Section 522(b) of the Federal Crop
Insurance Act (7 U.S.C. 1522(b)) is amended by striking
paragraphs (1) and (2) and inserting the following:
``(1) Research and development payment.--
``(A) In general.--The Corporation shall provide a payment
to an applicant for research and development costs in
accordance with this subsection.
``(B) Reimbursement.--An applicant who submits a policy
under section 508(h) shall be eligible for the reimbursement
of reasonable research and development costs directly related
to the policy if the policy is approved by the Board for sale
to producers.
``(2) Advance payments.--
``(A) In general.--Subject to the other provisions of this
paragraph, the Board may approve the request of an applicant
for advance payment of a portion of reasonable research and
development costs prior to submission and approval of the
policy by the Board under section 508(h).
``(B) Procedures.--The Board shall establish procedures for
approving advance payment of reasonable research and
development costs to applicants.
``(C) Concept proposal.--As a condition of eligibility for
advance payments, an applicant shall submit a concept
proposal for the policy that the applicant plans to submit to
the Board under section 508(h), consistent with procedures
established by the Board for submissions under subparagraph
(B), including--
``(i) a summary of the qualifications of the applicant,
including any prior concept proposals and submissions to the
Board under section 508(h) and, if applicable, any work
conducted under this section;
``(ii) a projection of total research and development costs
that the applicant expects to incur;
``(iii) a description of the need for the policy, the
marketability of and expected demand for the policy among
affected producers, and the potential impact of the policy on
producers and the crop insurance delivery system;
``(iv) a summary of data sources available to demonstrate
that the policy can reasonably be developed and actuarially
appropriate rates established; and
``(v) an identification of the risks the proposed policy
will cover and an explanation of how the identified risks are
insurable under this title.
``(D) Review.--
``(i) Experts.--If the requirements of subparagraph (B) and
(C) are met, the Board may submit a concept proposal
described in subparagraph (C) to not less than 2 independent
expert reviewers, whose services are appropriate for the type
of concept proposal submitted, to assess the likelihood that
the proposed policy being developed will result in a viable
and marketable policy, as determined by the Board.
``(ii) Timing.--The time frames described in subparagraphs
(C) and (D) of section 508(h)(4) shall apply to the review of
concept proposals under this subparagraph.
``(E) Approval.--The Board may approve up to 50 percent of
the projected total research and development costs to be paid
in advance to an applicant, in accordance with the procedures
developed by the Board for the making of such payments, if,
after consideration of the reviewer reports described in
subparagraph (D) and such other information as the Board
determines appropriate, the Board determines that--
``(i) the concept, in good faith, will likely result in a
viable and marketable policy consistent with section 508(h);
``(ii) in the sole opinion of the Board, the concept, if
developed into a policy and approved by the Board, would
provide crop insurance coverage--
``(I) in a significantly improved form;
``(II) to a crop or region not traditionally served by the
Federal crop insurance program; or
``(III) in a form that addresses a recognized flaw or
problem in the program;
``(iii) the applicant agrees to provide such reports as the
Corporation determines are necessary to monitor the
development effort;
``(iv) the proposed budget and timetable are reasonable;
and
``(v) the concept proposal meets any other requirements
that the Board determines appropriate.
``(F) Submission of policy.--If the Board approves an
advanced payment under subparagraph (E), the Board shall
establish a date by which the applicant shall present a
submission in compliance with section 508(h) (including the
procedures implemented under that section) to the Board for
approval.
``(G) Final payment.--
``(i) Approved policies.--If a policy is submitted under
subparagraph (F) and approved by the Board under section
508(h) and the procedures established by the Board (including
procedures established under subparagraph (B)), the applicant
shall be eligible for a payment of reasonable research and
development costs in the same manner as policies reimbursed
under paragraph (1)(B), less any payments made pursuant to
subparagraph (E).
``(ii) Policies not approved.--If a policy is submitted
under subparagraph (F) and is not approved by the Board under
section 508(h), the Corporation shall--
``(I) not seek a refund of any payments made in accordance
with this paragraph; and
``(II) not make any further research and development cost
payments associated with the submission of the policy under
this paragraph.
``(H) Policy not submitted.--If an applicant receives an
advance payment and fails to fulfill the obligation of the
applicant to the Board by not submitting a completed
submission without just cause and in accordance with the
procedures established under subparagraph (B)), including
notice and reasonable opportunity to respond, as determined
by the Board, the applicant shall return to the Board the
amount of the advance plus interest.
``(I) Repeated submissions.--The Board may prohibit advance
payments to applicants who have submitted--
``(i) a concept proposal or submission that did not result
in a marketable product; or
``(ii) a concept proposal or submission of poor quality.
``(J) Continued eligibility.--A determination that an
applicant is not eligible for advance payments under this
paragraph shall not prevent an applicant from reimbursement
under paragraph (1)(B).''.
(b) Conforming Amendments.--Section 522(b) of the Federal
Crop Insurance Act (7 U.S.C. 1522(b)) is amended--
(1) in paragraph (3), by striking ``or (2)''; and
(2) in paragraph (4)(A), by striking ``and (2)''.''
SEC. 12023. CONTRACTS FOR ADDITIONAL POLICIES AND STUDIES.
Section 522(c) of the Federal Crop Insurance Act (7 U.S.C.
1522) is amended--
(1) by redesignating paragraph (10) as paragraph (17); and
(2) by inserting after paragraph (9) the following:
``(10) Contracts for organic production coverage
improvements.--
``(A) Contracts required.--Not later than 180 days after
the date of enactment of the Food, Conservation, and Energy
Act of 2008, the Corporation shall enter into 1 or more
contracts for the development of improvements in Federal crop
insurance policies covering crops produced in compliance with
standards issued by the Department of Agriculture under the
national organic program established under the Organic Foods
Production Act of 1990 (7 U.S.C. 6501 et seq.).
``(B) Review of underwriting risk and loss experience.--
``(i) Review required.--
``(I) In general.--A contract under subparagraph (A) shall
include a review of the underwriting, risk, and loss
experience of organic crops covered by the Corporation, as
compared with the same crops produced in the same counties
and during the same crop years using nonorganic methods.
``(II) Requirements.--The review shall--
``(aa) to the maximum extent practicable, be designed to
allow the Corporation to determine whether significant,
consistent, or systemic variations in loss history exist
between organic and nonorganic production;
``(bb) include the widest available range of data collected
by the Secretary and other outside sources of information;
and
``(cc) not be limited to loss history under existing crop
insurance policies.
``(ii) Effect on premium surcharge.--Unless the review
under this subparagraph documents the existence of
significant, consistent, and systemic variations in loss
history between organic and nonorganic crops, either
collectively or on an individual crop basis, the Corporation
shall eliminate or reduce the premium surcharge that the
Corporation charges for coverage for organic crops, as
determined in accordance with the results.
``(iii) Annual updates.--Beginning with the 2009 crop year,
the review under this subparagraph shall be updated on an
annual basis as data is accumulated by the Secretary and
other sources, so that the Corporation may make
determinations regarding adjustments to the surcharge in a
timely manner as quickly as evolving practices and data
trends allow.
``(C) Additional price election.--
``(i) In general.--A contract under subparagraph (A) shall
include the development of a procedure, including any
associated changes in policy terms or materials required for
implementation of the procedure, to offer producers of
organic crops an additional price election that reflects
actual prices received by organic producers for crops from
the field (including appropriate
[[Page H4605]]
retail and wholesale prices), as established using data
collected and maintained by the Secretary or from other
sources.
``(ii) Timing.--The development of the procedure shall be
completed in a timely manner to allow the Corporation to
begin offering the additional price election for organic
crops with sufficient data for the 2010 crop year.
``(iii) Expansion.--The procedure shall be expanded as
quickly as practicable as additional data on prices of
organic crops collected by the Secretary and other sources of
information becomes available, with a goal of applying this
procedure to all organic crops not later than the fifth full
crop year that begins after the date of enactment of Food,
Conservation, and Energy Act of 2008.
``(D) Reporting requirements.--
``(i) In general.--The Corporation shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate an annual report on progress made in developing and
improving Federal crop insurance for organic crops,
including--
``(I) the numbers and varieties of organic crops insured;
``(II) the development of new insurance approaches; and
``(III) the progress of implementing the initiatives
required under this paragraph, including the rate at which
additional price elections are adopted for organic crops.
``(ii) Recommendations.--The report shall include such
recommendations as the Corporation considers appropriate to
improve Federal crop insurance coverage for organic crops.
``(11) Energy crop insurance policy.--
``(A) Definition of dedicated energy crop.--In this
subsection, the term `dedicated energy crop' means an annual
or perennial crop that--
``(i) is grown expressly for the purpose of producing a
feedstock for renewable biofuel, renewable electricity, or
biobased products; and
``(ii) is not typically used for food, feed, or fiber.
``(B) Authority.--The Corporation shall offer to enter into
1 or more contracts with qualified entities to carry out
research and development regarding a policy to insure
dedicated energy crops.
``(C) Research and development.--Research and development
described in subparagraph (B) shall evaluate the
effectiveness of risk management tools for the production of
dedicated energy crops, including policies and plans of
insurance that--
``(i) are based on market prices and yields;
``(ii) to the extent that insufficient data exist to
develop a policy based on market prices and yields, evaluate
the policies and plans of insurance based on the use of
weather or rainfall indices to protect the interests of crop
producers; and
``(iii) provide protection for production or revenue
losses, or both.
``(12) Aquaculture insurance policy.--
``(A) Definition of aquaculture.--In this subsection:
``(i) In general.--The term `aquaculture' means the
propagation and rearing of aquatic species in controlled or
selected environments, including shellfish cultivation on
grants or leased bottom and ocean ranching.
``(ii) Exclusion.--The term `aquaculture' does not include
the private ocean ranching of Pacific salmon for profit in
any State in which private ocean ranching of Pacific salmon
is prohibited by any law (including regulations).
``(B) Authority.--
``(i) In general.--As soon as practicable after the date of
enactment of the Food, Conservation, and Energy Act of 2008,
the Corporation shall offer to enter into 3 or more contracts
with qualified entities to carry out research and development
regarding a policy to insure the production of aquacultural
species in aquaculture operations.
``(ii) Bivalve species.--At least 1 of the contracts
described in clause (i) shall address insurance of bivalve
species, including--
``(I) American oysters (crassostrea virginica);
``(II) hard clams (mercenaria mercenaria);
``(III) Pacific oysters (crassostrea gigas);
``(IV) Manila clams (tapes phillipinnarium); or
``(V) blue mussels (mytilus edulis).
``(iii) Freshwater species.--At least 1 of the contracts
described in clause (i) shall address insurance of freshwater
species, including--
``(I) catfish (icataluridae);
``(II) rainbow trout (oncorhynchus mykiss);
``(III) largemouth bass (micropterus salmoides);
``(IV) striped bass (morone saxatilis);
``(V) bream (abramis brama);
``(VI) shrimp (penaeus); or
``(VII) tilapia (oreochromis niloticus).
``(iv) Saltwater species.--At least 1 of the contracts
described in clause (i) shall address insurance of saltwater
species, including--
``(I) Atlantic salmon (salmo salar); or
``(II) shrimp (penaeus).
``(C) Research and development.--Research and development
described in subparagraph (B) shall evaluate the
effectiveness of policies and plans of insurance for the
production of aquacultural species in aquaculture operations,
including policies and plans of insurance that--
``(i) are based on market prices and yields;
``(ii) to the extent that insufficient data exist to
develop a policy based on market prices and yields, evaluate
how best to incorporate insuring of production of
aquacultural species in aquaculture operations into existing
policies covering adjusted gross revenue; and
``(iii) provide protection for production or revenue
losses, or both.
``(13) Poultry insurance policy.--
``(A) Definition of poultry.--In this paragraph, the term
`poultry' has the meaning given the term in section 2(a) of
the Packers and Stockyards Act, 1921 (7 U.S.C. 182(a)).
``(B) Authority.--The Corporation shall offer to enter into
1 or more contracts with qualified entities to carry out
research and development regarding a policy to insure
commercial poultry production.
``(C) Research and development.--Research and development
described in subparagraph (B) shall evaluate the
effectiveness of risk management tools for the production of
poultry, including policies and plans of insurance that
provide protection for production or revenue losses, or both,
while the poultry is in production.
``(14) Apiary policies.--The Corporation shall offer to
enter into a contract with a qualified entity to carry out
research and development regarding insurance policies that
cover loss of bees.
``(15) Adjusted gross revenue policies for beginning
producers.--The Corporation shall offer to enter into a
contract with a qualified entity to carry out research and
development into needed modifications of adjusted gross
revenue insurance policies, consistent with principles of
actuarial sufficiency, to permit coverage for beginning
producers with no previous production history, including
permitting those producers to have production and premium
rates based on information with similar farming operations.
``(16) Skiprow cropping practices.--
``(A) In general.--The Corporation shall offer to enter
into a contract with a qualified entity to carry out research
into needed modifications of policies to insure corn and
sorghum produced in the Central Great Plains (as determined
by the Agricultural Research Service) through use of skiprow
cropping practices.
``(B) Research.--Research described in subparagraph (A)
shall--
``(i) review existing research on skiprow cropping
practices and actual production history of producers using
skiprow cropping practices; and
``(ii) evaluate the effectiveness of risk management tools
for producers using skiprow cropping practices, including--
``(I) the appropriateness of rules in existence as of the
date of enactment of this paragraph relating to the
determination of acreage planted in skiprow patterns; and
``(II) whether policies for crops produced through skiprow
cropping practices reflect actual production capabilities.''.
SEC. 12024. FUNDING FROM INSURANCE FUND.
Section 522(e) of the Federal Crop Insurance Act (7 U.S.C.
1522(e)) is amended--
(1) in paragraph (1), by striking ``$10,000,000'' and all
that follows through the end of the paragraph and inserting
``$7,500,000 for fiscal year 2008 and each subsequent fiscal
year'';
(2) in paragraph (2)(A), by striking ``$20,000,000 for''
and all that follows through ``year 2004'' and inserting
``$12,500,000 for fiscal year 2008''; and
(3) in paragraph (3), by striking ``the Corporation may
use'' and all that follows through the end of the paragraph
and inserting ``the Corporation may use--
``(A) not more than $5,000,000 for each fiscal year to
improve program integrity, including by--
``(i) increasing compliance-related training;
``(ii) improving analysis tools and technology regarding
compliance;
``(iii) use of information technology, as determined by the
Corporation; and
``(iv) identifying and using innovative compliance
strategies; and
``(B) any excess amounts to carry out other activities
authorized under this section.''.
SEC. 12025. PILOT PROGRAMS.
(a) In General.--Section 523 of the Federal Crop Insurance
Act (7 U.S.C. 1523) is amended by adding at the end the
following:
``(f) Camelina Pilot Program.--
``(1) In general.--The Corporation shall establish a pilot
program under which producers or processors of camelina may
propose for approval by the Board policies or plans of
insurance for camelina, in accordance with section 508(h).
``(2) Determination by board.--The Board shall approve a
policy or plan of insurance proposed under paragraph (1) if,
as determined by the Board, the policy or plan of insurance--
``(A) protects the interests of producers;
``(B) is actuarially sound; and
``(C) meets the requirements of this title.
``(3) Timeframe.--The Corporation shall commence the
camelina insurance pilot program as soon as practicable after
the date of enactment of this subsection.
``(g) Sesame Insurance Pilot Program.--
``(1) In general.--In addition to any other authority of
the Corporation, the Corporation shall establish and carry
out a pilot program under which a producer of nondehiscent
sesame under contract may elect to obtain multiperil crop
insurance, as determined by the Corporation.
``(2) Terms and conditions.--The multiperil crop insurance
offered under the sesame insurance pilot program shall--
``(A) be offered through reinsurance arrangements with
private insurance companies;
[[Page H4606]]
``(B) be actuarially sound; and
``(C) require the payment of premiums and administrative
fees by a producer obtaining the insurance.
``(3) Location.--The sesame insurance pilot program shall
be carried out only in the State of Texas.
``(4) Duration.--The Corporation shall commence the sesame
insurance pilot program as soon as practicable after the date
of the enactment of this subsection.
``(h) Grass Seed Insurance Pilot Program.--
``(1) In general.--In addition to any other authority of
the Corporation, the Corporation shall establish and carry
out a grass seed pilot program under which a producer of
Kentucky bluegrass or perennial rye grass under contract may
elect to obtain multiperil crop insurance, as determined by
the Corporation.
``(2) Terms and conditions.--The multiperil crop insurance
offered under the grass seed insurance pilot program shall--
``(A) be offered through reinsurance arrangements with
private insurance companies;
``(B) be actuarially sound; and
``(C) require the payment of premiums and administrative
fees by a producer obtaining the insurance.
``(3) Location.--The grass seed insurance pilot program
shall be carried out only in each of the States of Minnesota
and North Dakota.
``(4) Duration.--The Corporation shall commence the grass
seed insurance pilot program as soon as practicable after the
date of the enactment of this subsection.''.
(b) Conforming Amendment.--Section 196(a)(2)(B) of the
Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7333(a)(2)(B)) is amended by adding ``camelina,''
after ``sea oats,''.
SEC. 12026. RISK MANAGEMENT EDUCATION FOR BEGINNING FARMERS
OR RANCHERS.
Section 524(a) of the Federal Crop Insurance Act (7 U.S.C.
1524(a)) is amended--
(1) in paragraph (1), by striking ``paragraph (4)'' and
inserting ``paragraph (5)'';
(2) by redesignating paragraph (4) as paragraph (5); and
(3) by inserting after paragraph (3) the following:
``(4) Requirements.--In carrying out the programs
established under paragraphs (2) and (3), the Secretary shall
place special emphasis on risk management strategies,
education, and outreach specifically targeted at--
``(A) beginning farmers or ranchers;
``(B) legal immigrant farmers or ranchers that are
attempting to become established producers in the United
States;
``(C) socially disadvantaged farmers or ranchers;
``(D) farmers or ranchers that--
``(i) are preparing to retire; and
``(ii) are using transition strategies to help new farmers
or ranchers get started; and
``(E) new or established farmers or ranchers that are
converting production and marketing systems to pursue new
markets.''.
SEC. 12027. COVERAGE FOR AQUACULTURE UNDER NONINSURED CROP
ASSISTANCE PROGRAM.
Section 196(c)(2) of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7333(c)(2)) is amended--
(1) by striking ``On making'' and inserting the following:
``(A) In general.--On making''; and
(2) by adding at the end the following:
``(B) Aquaculture producers.--On making a determination
described in subsection (a)(3) for aquaculture producers, the
Secretary shall provide assistance under this section to
aquaculture producers from all losses related to drought.''.
SEC. 12028. INCREASE IN SERVICE FEES FOR NONINSURED CROP
ASSISTANCE PROGRAM.
Section 196(k)(1) of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7333(k)(1)) is amended--
(1) in subparagraph (A), by striking ``$100'' and inserting
``$250''; and
(2) in subparagraph (B)--
(A) by striking ``$300'' and inserting ``$750''; and
(B) by striking ``$900'' and inserting ``$1,875''.
SEC. 12029. DETERMINATION OF CERTAIN SWEET POTATO PRODUCTION.
Section 9001(d) of the U.S. Troop Readiness, Veterans'
Care, Katrina Recovery, and Iraq Accountability
Appropriations Act, 2007 (Public Law 110-28; 121 Stat. 211)
is amended--
(1) by redesignating paragraph (8) as paragraph (9); and
(2) by inserting after paragraph (7) the following:
``(8) Sweet potatoes.--
``(A) Data.--In the case of sweet potatoes, any data
obtained under a pilot program carried out by the Risk
Management Agency shall not be considered for the purpose of
determining the quantity of production under the crop
disaster assistance program established under this section.
``(B) Extension of deadline.--If this paragraph is not
implemented before the sign-up deadline for the crop disaster
assistance program established under this section, the
Secretary shall extend the deadline for producers of sweet
potatoes to permit sign-up for the program in accordance with
this paragraph.''.
SEC. 12030. DECLINING YIELD REPORT.
Not later than 180 days after the date of enactment of this
Act, the Secretary shall submit to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate a
report containing details about activities and administrative
options of the Federal Crop Insurance Corporation and Risk
Management Agency that address issues relating to--
(1) declining yields on the actual production histories of
producers; and
(2) declining and variable yields for perennial crops,
including pecans.
SEC. 12031. DEFINITION OF BASIC UNIT.
The Secretary shall not modify the definition of ``basic
unit'' in accordance with the proposed regulations entitled
``Common Crop Insurance Regulations'' (72 Fed. Reg. 28895;
relating to common crop insurance regulations) or any
successor regulation.
SEC. 12032. CROP INSURANCE MEDIATION.
Section 275 of the Department of Agriculture Reorganization
Act of 1994 (7 U.S.C. 6995) is amended--
(1) by striking ``If an officer'' and inserting the
following:
``(a) In General.--If an officer'';
(2) by striking ``With respect to'' and inserting the
following:
``(b) Farm Service Agency.--With respect to'';
(3) by striking ``If a mediation''; and inserting the
following:
``(c) Mediation.--If a mediation''; and
(4) in subsection (c) (as so designated)--
(A) by striking ``participant shall be offered'' and
inserting ``participant shall--
``(1) be offered''; and
(B) by striking the period at the end and inserting the
following: ``; and
``(2) to the maximum extent practicable, be allowed to use
both informal agency review and mediation to resolve disputes
under that title.''.
SEC. 12033. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.
(a) In General.--The Federal Crop Insurance Act (7 U.S.C.
1501 et seq.) is amended by adding at the end the following:
``Subtitle B--Supplemental Agricultural Disaster Assistance
``SEC. 531. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.
``(a) Definitions.--In this section:
``(1) Actual production history yield.--The term `actual
production history yield' means the weighted average of the
actual production history for each insurable commodity or
noninsurable commodity, as calculated under subtitle A or the
noninsured crop disaster assistance program, respectively.
``(2) Adjusted actual production history yield.--The term
`adjusted actual production history yield' means--
``(A) in the case of an eligible producer on a farm that
has at least 4 years of actual production history yields for
an insurable commodity that are established other than
pursuant to section 508(g)(4)(B), the actual production
history for the eligible producer without regard to any
yields established under that section;
``(B) in the case of an eligible producer on a farm that
has less than 4 years of actual production history yields for
an insurable commodity, of which 1 or more were established
pursuant to section 508(g)(4)(B), the actual production
history for the eligible producer as calculated without
including the lowest of the yields established pursuant to
section 508(g)(4)(B); and
``(C) in all other cases, the actual production history of
the eligible producer on a farm.
``(3) Adjusted noninsured crop disaster assistance program
yield.--The term `adjusted noninsured crop disaster
assistance program yield' means--
``(A) in the case of an eligible producer on a farm that
has at least 4 years of production history under the
noninsured crop disaster assistance program that are not
replacement yields, the noninsured crop disaster assistance
program yield without regard to any replacement yields;
``(B) in the case of an eligible producer on a farm that
less than 4 years of production history under the noninsured
crop disaster assistance program that are not replacement
yields, the noninsured crop disaster assistance program yield
as calculated without including the lowest of the replacement
yields; and
``(C) in all other cases, the production history of the
eligible producer on the farm under the noninsured crop
disaster assistance program.
``(4) Counter-cyclical program payment yield.--The term
`counter-cyclical program payment yield' means the weighted
average payment yield established under section 1102 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C.
7912), section 1102 of the Food, Conservation, and Energy Act
of 2008, or a successor section.
``(5) Disaster county.--
``(A) In general.--The term `disaster county' means a
county included in the geographic area covered by a
qualifying natural disaster declaration.
``(B) Inclusion.--The term `disaster county' includes--
``(i) a county contiguous to a county described in
subparagraph (A); and
``(ii) any farm in which, during a calendar year, the total
loss of production of the farm relating to weather is greater
than 50 percent of the normal production of the farm, as
determined by the Secretary.
``(6) Eligible producer on a farm.--
[[Page H4607]]
``(A) In general.--The term `eligible producer on a farm'
means an individual or entity described in subparagraph (B)
that, as determined by the Secretary, assumes the production
and market risks associated with the agricultural production
of crops or livestock.
``(B) Description.--An individual or entity referred to in
subparagraph (A) is--
``(i) a citizen of the United States;
``(ii) a resident alien;
``(iii) a partnership of citizens of the United States; or
``(iv) a corporation, limited liability corporation, or
other farm organizational structure organized under State
law.
``(7) Farm.--
``(A) In general.--The term `farm' means, in relation to an
eligible producer on a farm, the sum of all crop acreage in
all counties that is planted or intended to be planted for
harvest by the eligible producer.
``(B) Aquaculture.--In the case of aquaculture, the term
`farm' means, in relation to an eligible producer on a farm,
all fish being produced in all counties that are intended to
be harvested for sale by the eligible producer.
``(C) Honey.--In the case of honey, the term `farm' means,
in relation to an eligible producer on a farm, all bees and
beehives in all counties that are intended to be harvested
for a honey crop by the eligible producer.
``(8) Farm-raised fish.--The term `farm-raised fish' means
any aquatic species that is propagated and reared in a
controlled environment.
``(9) Insurable commodity.--The term `insurable commodity'
means an agricultural commodity (excluding livestock) for
which the producer on a farm is eligible to obtain a policy
or plan of insurance under subtitle A.
``(10) Livestock.--The term `livestock' includes--
``(A) cattle (including dairy cattle);
``(B) bison;
``(C) poultry;
``(D) sheep;
``(E) swine;
``(F) horses; and
``(G) other livestock, as determined by the Secretary.
``(11) Noninsurable commodity.--The term `noninsurable
commodity' means a crop for which the eligible producers on a
farm are eligible to obtain assistance under the noninsured
crop assistance program.
``(12) Noninsured crop assistance program.--The term
`noninsured crop assistance program' means the program
carried out under section 196 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7333).
``(13) Qualifying natural disaster declaration.--The term
`qualifying natural disaster declaration' means a natural
disaster declared by the Secretary for production losses
under section 321(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1961(a)).
``(14) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``(15) Socially disadvantaged farmer or rancher.--The term
`socially disadvantaged farmer or rancher' has the meaning
given the term in section 2501(e) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)).
``(16) State.--The term `State' means--
``(A) a State;
``(B) the District of Columbia;
``(C) the Commonwealth of Puerto Rico; and
``(D) any other territory or possession of the United
States.
``(17) Trust fund.--The term `Trust Fund' means the
Agricultural Disaster Relief Trust Fund established under
section 902 of the Trade Act of 1974.
``(18) United states.--The term `United States' when used
in a geographical sense, means all of the States.
``(b) Supplemental Revenue Assistance Payments.--
``(1) In general.--The Secretary shall use such sums as are
necessary from the Trust Fund to make crop disaster
assistance payments to eligible producers on farms in
disaster counties that have incurred crop production losses
or crop quality losses, or both, during the crop year.
``(2) Amount.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall provide crop disaster assistance payments
under this section to an eligible producer on a farm in an
amount equal to 60 percent of the difference between--
``(i) the disaster assistance program guarantee, as
described in paragraph (3); and
``(ii) the total farm revenue for a farm, as described in
paragraph (4).
``(B) Limitation.--The disaster assistance program
guarantee for a crop used to calculate the payments for a
farm under subparagraph (A)(i) may not be greater than 90
percent of the sum of the expected revenue, as described in
paragraph (5) for each of the crops on a farm, as determined
by the Secretary.
``(3) Supplemental revenue assistance program guarantee.--
``(A) In general.--Except as otherwise provided in this
paragraph, the supplemental assistance program guarantee
shall be the sum obtained by adding--
``(i) for each insurable commodity on the farm, 115 percent
of the product obtained by multiplying--
``(I) a payment rate for the commodity that is equal to the
price election for the commodity elected by the eligible
producer;
``(II) the payment acres for the commodity that is equal to
the number of acres planted, or prevented from being planted,
to the commodity;
``(III) the payment yield for the commodity that is equal
to the percentage of the crop insurance yield elected by the
producer of the higher of--
``(aa) the adjusted actual production history yield; or
``(bb) the counter-cyclical program payment yield for each
crop; and
``(ii) for each noninsurable commodity on a farm, 120
percent of the product obtained by multiplying--
``(I) a payment rate for the commodity that is equal to 100
percent of the noninsured crop assistance program established
price for the commodity;
``(II) the payment acres for the commodity that is equal to
the number of acres planted, or prevented from being planted,
to the commodity; and
``(III) the payment yield for the commodity that is equal
to the higher of--
``(aa) the adjusted noninsured crop assistance program
yield guarantee; or
``(bb) the counter-cyclical program payment yield for each
crop.
``(B) Adjustment insurance guarantee.--Notwithstanding
subparagraph (A), in the case of an insurable commodity for
which a plan of insurance provides for an adjustment in the
guarantee, such as in the case of prevented planting, the
adjusted insurance guarantee shall be the basis for
determining the disaster assistance program guarantee for the
insurable commodity.
``(C) Adjusted assistance level.--Notwithstanding
subparagraph (A), in the case of a noninsurable commodity for
which the noninsured crop assistance program provides for an
adjustment in the level of assistance, such as in the case of
unharvested crops, the adjusted assistance level shall be the
basis for determining the disaster assistance program
guarantee for the noninsurable commodity.
``(D) Equitable treatment for non-yield based policies.--
The Secretary shall establish equitable treatment for non-
yield based policies and plans of insurance, such as the
Adjusted Gross Revenue Lite insurance program.
``(4) Farm revenue.--
``(A) In general.--For purposes of this subsection, the
total farm revenue for a farm, shall equal the sum obtained
by adding--
``(i) the estimated actual value for each crop produced on
a farm by using the product obtained by multiplying--
``(I) the actual crop acreage harvested by an eligible
producer on a farm;
``(II) the estimated actual yield of the crop production;
and
``(III) subject to subparagraphs (B) and (C), to the extent
practicable, the national average market price received for
the marketing year, as determined by the Secretary;
``(ii) 15 percent of amount of any direct payments made to
the producer under sections 1103 and 1303 of the Food,
Conservation, and Energy Act of 2008 or successor sections;
``(iii) the total amount of any counter-cyclical payments
made to the producer under sections 1104 and 1304 of the
Food, Conservation, and Energy Act of 2008 or successor
sections or of any average crop revenue election payments
made to the producer under section 1105 of that Act;
``(iv) the total amount of any loan deficiency payments,
marketing loan gains, and marketing certificate gains made to
the producer under subtitles B and C of the Food,
Conservation, and Energy Act of 2008 or successor subtitles;
``(v) the amount of payments for prevented planting on a
farm;
``(vi) the amount of crop insurance indemnities received by
an eligible producer on a farm for each crop on a farm;
``(vii) the amount of payments an eligible producer on a
farm received under the noninsured crop assistance program
for each crop on a farm; and
``(viii) the value of any other natural disaster assistance
payments provided by the Federal Government to an eligible
producer on a farm for each crop on a farm for the same loss
for which the eligible producer is seeking assistance.
``(B) Adjustment.--The Secretary shall adjust the average
market price received by the eligible producer on a farm--
``(i) to reflect the average quality discounts applied to
the local or regional market price of a crop or mechanically
harvested forage due to a reduction in the intrinsic
characteristics of the production resulting from adverse
weather, as determined annually by the State office of the
Farm Service Agency; and
``(ii) to account for a crop the value of which is reduced
due to excess moisture resulting from a disaster-related
condition.
``(C) Maximum amount for certain crops.--With respect to a
crop for which an eligible producer on a farm receives
assistance under the noninsured crop assistance program, the
national average market price received during the marketing
year shall be an amount not more than 100 percent of the
price of the crop established under the noninsured crop
assistance program.
``(5) Expected revenue.--The expected revenue for each crop
on a farm shall equal the sum obtained by adding--
``(A) the product obtained by multiplying--
``(i) the greatest of--
[[Page H4608]]
``(I) the adjusted actual production history yield of the
eligible producer on a farm; and
``(II) the counter-cyclical program payment yield;
``(ii) the acreage planted or prevented from being planted
for each crop; and
``(iii) 100 percent of the insurance price guarantee; and
``(B) the product obtained by multiplying--
``(i) 100 percent of the adjusted noninsured crop
assistance program yield; and
``(ii) 100 percent of the noninsured crop assistance
program price for each of the crops on a farm.
``(c) Livestock Indemnity Payments.--
``(1) Payments.--The Secretary shall use such sums as are
necessary from the Trust Fund to make livestock indemnity
payments to eligible producers on farms that have incurred
livestock death losses in excess of the normal mortality due
to adverse weather, as determined by the Secretary, during
the calendar year, including losses due to hurricanes,
floods, blizzards, disease, wildfires, extreme heat, and
extreme cold.
``(2) Payment rates.--Indemnity payments to an eligible
producer on a farm under paragraph (1) shall be made at a
rate of 75 percent of the market value of the applicable
livestock on the day before the date of death of the
livestock, as determined by the Secretary.
``(d) Livestock Forage Disaster Program.--
``(1) Definitions.--In this subsection:
``(A) Covered livestock.--
``(i) In general.--Except as provided in clause (ii), the
term `covered livestock' means livestock of an eligible
livestock producer that, during the 60 days prior to the
beginning date of a qualifying drought or fire condition, as
determined by the Secretary, the eligible livestock
producer--
``(I) owned;
``(II) leased;
``(III) purchased;
``(IV) entered into a contract to purchase;
``(V) is a contract grower; or
``(VI) sold or otherwise disposed of due to qualifying
drought conditions during--
``(aa) the current production year; or
``(bb) subject to paragraph (3)(B)(ii), 1 or both of the 2
production years immediately preceding the current production
year.
``(ii) Exclusion.--The term `covered livestock' does not
include livestock that were or would have been in a feedlot,
on the beginning date of the qualifying drought or fire
condition, as a part of the normal business operation of the
eligible livestock producer, as determined by the Secretary.
``(B) Drought monitor.--The term `drought monitor' means a
system for classifying drought severity according to a range
of abnormally dry to exceptional drought, as defined by the
Secretary.
``(C) Eligible livestock producer.--
``(i) In general.--The term `eligible livestock producer'
means an eligible producer on a farm that--
``(I) is an owner, cash or share lessee, or contract grower
of covered livestock that provides the pastureland or grazing
land, including cash-leased pastureland or grazing land, for
the livestock;
``(II) provides the pastureland or grazing land for covered
livestock, including cash-leased pastureland or grazing land
that is physically located in a county affected by drought;
``(III) certifies grazing loss; and
``(IV) meets all other eligibility requirements established
under this subsection.
``(ii) Exclusion.--The term `eligible livestock producer'
does not include an owner, cash or share lessee, or contract
grower of livestock that rents or leases pastureland or
grazing land owned by another person on a rate-of-gain basis.
``(D) Normal carrying capacity.--The term `normal carrying
capacity', with respect to each type of grazing land or
pastureland in a county, means the normal carrying capacity,
as determined under paragraph (3)(D)(i), that would be
expected from the grazing land or pastureland for livestock
during the normal grazing period, in the absence of a drought
or fire that diminishes the production of the grazing land or
pastureland.
``(E) Normal grazing period.--The term `normal grazing
period', with respect to a county, means the normal grazing
period during the calendar year for the county, as determined
under paragraph (3)(D)(i).
``(2) Program.--The Secretary shall use such sums as are
necessary from the Trust Fund to provide compensation for
losses to eligible livestock producers due to grazing losses
for covered livestock due to--
``(A) a drought condition, as described in paragraph (3);
or
``(B) fire, as described in paragraph (4).
``(3) Assistance for losses due to drought conditions.--
``(A) Eligible losses.--
``(i) In general.--An eligible livestock producer may
receive assistance under this subsection only for grazing
losses for covered livestock that occur on land that--
``(I) is native or improved pastureland with permanent
vegetative cover; or
``(II) is planted to a crop planted specifically for the
purpose of providing grazing for covered livestock.
``(ii) Exclusions.--An eligible livestock producer may not
receive assistance under this subsection for grazing losses
that occur on land used for haying or grazing under the
conservation reserve program established under subchapter B
of chapter 1 of subtitle D of title XII of the Food Security
Act of 1985 (16 U.S.C. 3831 et seq.).
``(B) Monthly payment rate.--
``(i) In general.--Except as provided in clause (ii), the
payment rate for assistance under this paragraph for 1 month
shall, in the case of drought, be equal to 60 percent of the
lesser of--
``(I) the monthly feed cost for all covered livestock owned
or leased by the eligible livestock producer, as determined
under subparagraph (C); or
``(II) the monthly feed cost calculated by using the normal
carrying capacity of the eligible grazing land of the
eligible livestock producer.
``(ii) Partial compensation.--In the case of an eligible
livestock producer that sold or otherwise disposed of covered
livestock due to drought conditions in 1 or both of the 2
production years immediately preceding the current production
year, as determined by the Secretary, the payment rate shall
be 80 percent of the payment rate otherwise calculated in
accordance with clause (i).
``(C) Monthly feed cost.--
``(i) In general.--The monthly feed cost shall equal the
product obtained by multiplying--
``(I) 30 days;
``(II) a payment quantity that is equal to the feed grain
equivalent, as determined under clause (ii); and
``(III) a payment rate that is equal to the corn price per
pound, as determined under clause (iii).
``(ii) Feed grain equivalent.--For purposes of clause
(i)(I), the feed grain equivalent shall equal--
``(I) in the case of an adult beef cow, 15.7 pounds of corn
per day; or
``(II) in the case of any other type of weight of
livestock, an amount determined by the Secretary that
represents the average number of pounds of corn per day
necessary to feed the livestock.
``(iii) Corn price per pound.--For purposes of clause
(i)(II), the corn price per pound shall equal the quotient
obtained by dividing--
``(I) the higher of--
``(aa) the national average corn price per bushel for the
12-month period immediately preceding March 1 of the year for
which the disaster assistance is calculated; or
``(bb) the national average corn price per bushel for the
24-month period immediately preceding that March 1; by
``(II) 56.
``(D) Normal grazing period and drought monitor
intensity.--
``(i) FSA county committee determinations.--
``(I) In general.--The Secretary shall determine the normal
carrying capacity and normal grazing period for each type of
grazing land or pastureland in the county served by the
applicable committee.
``(II) Changes.--No change to the normal carrying capacity
or normal grazing period established for a county under
subclause (I) shall be made unless the change is requested by
the appropriate State and county Farm Service Agency
committees.
``(ii) Drought intensity.--
``(I) D2.--An eligible livestock producer that owns or
leases grazing land or pastureland that is physically located
in a county that is rated by the U.S. Drought Monitor as
having a D2 (severe drought) intensity in any area of the
county for at least 8 consecutive weeks during the normal
grazing period for the county, as determined by the
Secretary, shall be eligible to receive assistance under this
paragraph in an amount equal to 1 monthly payment using the
monthly payment rate determined under subparagraph (B).
``(II) D3.--An eligible livestock producer that owns or
leases grazing land or pastureland that is physically located
in a county that is rated by the U.S. Drought Monitor as
having at least a D3 (extreme drought) intensity in any area
of the county at any time during the normal grazing period
for the county, as determined by the Secretary, shall be
eligible to receive assistance under this paragraph--
``(aa) in an amount equal to 2 monthly payments using the
monthly payment rate determined under subparagraph (B); or
``(bb) if the county is rated as having a D3 (extreme
drought) intensity in any area of the county for at least 4
weeks during the normal grazing period for the county, or is
rated as having a D4 (exceptional drought) intensity in any
area of the county at any time during the normal grazing
period, in an amount equal to 3 monthly payments using the
monthly payment rate determined under subparagraph (B).
``(4) Assistance for losses due to fire on public managed
land.--
``(A) In general.--An eligible livestock producer may
receive assistance under this paragraph only if--
``(i) the grazing losses occur on rangeland that is managed
by a Federal agency; and
``(ii) the eligible livestock producer is prohibited by the
Federal agency from grazing the normal permitted livestock on
the managed rangeland due to a fire.
``(B) Payment rate.--The payment rate for assistance under
this paragraph shall be equal to 50 percent of the monthly
feed cost for the total number of livestock covered by the
Federal lease of the eligible livestock producer, as
determined under paragraph (3)(C).
``(C) Payment duration.--
``(i) In general.--Subject to clause (ii), an eligible
livestock producer shall be eligible
[[Page H4609]]
to receive assistance under this paragraph for the period--
``(I) beginning on the date on which the Federal agency
excludes the eligible livestock producer from using the
managed rangeland for grazing; and
``(II) ending on the last day of the Federal lease of the
eligible livestock producer.
``(ii) Limitation.--An eligible livestock producer may only
receive assistance under this paragraph for losses that occur
on not more than 180 days per year.
``(5) Minimum risk management purchase requirements.--
``(A) In general.--Except as otherwise provided in this
paragraph, a livestock producer shall only be eligible for
assistance under this subsection if the livestock producer--
``(i) obtained a policy or plan of insurance under subtitle
A for the grazing land incurring the losses for which
assistance is being requested; or
``(ii) filed the required paperwork, and paid the
administrative fee by the applicable State filing deadline,
for the noninsured crop assistance program for the grazing
land incurring the losses for which assistance is being
requested.
``(B) Waiver for socially disadvantaged, limited resource,
or beginning farmer or rancher.--In the case of an eligible
livestock producer that is a socially disadvantaged farmer or
rancher or limited resource or beginning farmer or rancher,
as determined by the Secretary, the Secretary may--
``(i) waive subparagraph (A); and
``(ii) provide disaster assistance under this section at a
level that the Secretary determines to be equitable and
appropriate.
``(C) Waiver for 2008 calendar year.--In the case of an
eligible livestock producer that suffered losses on grazing
land during the 2008 calendar year but does not meet the
requirements of subparagraph (A), the Secretary shall waive
subparagraph (A) if the eligible livestock producer pays a
fee in an amount equal to the applicable noninsured crop
assistance program fee or catastrophic risk protection plan
fee required under subparagraph (A) to the Secretary not
later than 90 days after the date of enactment of this
subtitle.
``(D) Equitable relief.--
``(i) In general.--The Secretary may provide equitable
relief to an eligible livestock producer that is otherwise
ineligible or unintentionally fails to meet the requirements
of subparagraph (A) for the grazing land incurring the loss
on a case-by-case basis, as determined by the Secretary.
``(ii) 2008 calendar year.--In the case of an eligible
livestock producer that suffered losses on grazing land
during the 2008 calendar year, the Secretary shall take
special consideration to provide equitable relief in cases in
which the eligible livestock producer failed to meet the
requirements of subparagraph (A) due to the enactment of this
subtitle after the closing date of sales periods for crop
insurance under subtitle A and the noninsured crop assistance
program.
``(6) No duplicative payments.--
``(A) In general.--An eligible livestock producer may elect
to receive assistance for grazing or pasture feed losses due
to drought conditions under paragraph (3) or fire under
paragraph (4), but not both for the same loss, as determined
by the Secretary.
``(B) Relationship to supplemental revenue assistance.--An
eligible livestock producer that receives assistance under
this subsection may not also receive assistance for losses to
crops on the same land with the same intended use under
subsection (b).
``(e) Emergency Assistance for Livestock, Honey Bees, and
Farm-Raised Fish.--
``(1) In general.--The Secretary shall use up to
$50,000,000 per year from the Trust Fund to provide emergency
relief to eligible producers of livestock, honey bees, and
farm-raised fish to aid in the reduction of losses due to
disease, adverse weather, or other conditions, such as
blizzards and wildfires, as determined by the Secretary, that
are not covered under subsection (b), (c), or (d).
``(2) Use of funds.--Funds made available under this
subsection shall be used to reduce losses caused by feed or
water shortages, disease, or other factors as determined by
the Secretary.
``(3) Availability of funds.--Any funds made available
under this subsection shall remain available until expended.
``(f) Tree Assistance Program.--
``(1) Definitions.--In this subsection:
``(A) Eligible orchardist.--The term `eligible orchardist'
means a person that produces annual crops from trees for
commercial purposes.
``(B) Natural disaster.--The term `natural disaster' means
plant disease, insect infestation, drought, fire, freeze,
flood, earthquake, lightning, or other occurrence, as
determined by the Secretary.
``(C) Nursery tree grower.--The term `nursery tree grower'
means a person who produces nursery, ornamental, fruit, nut,
or Christmas trees for commercial sale, as determined by the
Secretary.
``(D) Tree.--The term `tree' includes a tree, bush, and
vine.
``(2) Eligibility.--
``(A) Loss.--Subject to subparagraph (B), the Secretary
shall provide assistance--
``(i) under paragraph (3) to eligible orchardists and
nursery tree growers that planted trees for commercial
purposes but lost the trees as a result of a natural
disaster, as determined by the Secretary; and
``(ii) under paragraph (3)(B) to eligible orchardists and
nursery tree growers that have a production history for
commercial purposes on planted or existing trees but lost the
trees as a result of a natural disaster, as determined by the
Secretary.
``(B) Limitation.--An eligible orchardist or nursery tree
grower shall qualify for assistance under subparagraph (A)
only if the tree mortality of the eligible orchardist or
nursery tree grower, as a result of damaging weather or
related condition, exceeds 15 percent (adjusted for normal
mortality).
``(3) Assistance.--Subject to paragraph (4), the assistance
provided by the Secretary to eligible orchardists and nursery
tree growers for losses described in paragraph (2) shall
consist of--
``(A)(i) reimbursement of 70 percent of the cost of
replanting trees lost due to a natural disaster, as
determined by the Secretary, in excess of 15 percent
mortality (adjusted for normal mortality); or
``(ii) at the option of the Secretary, sufficient seedlings
to reestablish a stand; and
``(B) reimbursement of 50 percent of the cost of pruning,
removal, and other costs incurred by an eligible orchardist
or nursery tree grower to salvage existing trees or, in the
case of tree mortality, to prepare the land to replant trees
as a result of damage or tree mortality due to a natural
disaster, as determined by the Secretary, in excess of 15
percent damage or mortality (adjusted for normal tree damage
and mortality).
``(4) Limitations on assistance.--
``(A) Definitions of legal entity and person.--In this
paragraph, the terms `legal entity' and `person' have the
meaning given those terms in section 1001(a) of the Food
Security Act of 1985 (7 U.S.C. 1308(a) (as amended by section
1603 of the Food, Conservation, and Energy Act of 2008).
``(B) Amount.--The total amount of payments received,
directly or indirectly, by a person or legal entity
(excluding a joint venture or general partnership) under this
subsection may not exceed $100,000 for any crop year, or an
equivalent value in tree seedlings.
``(C) Acres.--The total quantity of acres planted to trees
or tree seedlings for which a person or legal entity shall be
entitled to receive payments under this subsection may not
exceed 500 acres.
``(g) Risk Management Purchase Requirement.--
``(1) In general.--Except as otherwise provided in this
section, the eligible producers on a farm shall not be
eligible for assistance under this section (other than
subsection (c)) if the eligible producers on the farm--
``(A) in the case of each insurable commodity of the
eligible producers on the farm, did not obtain a policy or
plan of insurance under subtitle A (excluding a crop
insurance pilot program under that subtitle); or
``(B) in the case of each noninsurable commodity of the
eligible producers on the farm, did not file the required
paperwork, and pay the administrative fee by the applicable
State filing deadline, for the noninsured crop assistance
program.
``(2) Minimum.--To be considered to have obtained insurance
under paragraph (1)(A), an eligible producer on a farm shall
have obtained a policy or plan of insurance with not less
than 50 percent yield coverage at 55 percent of the insurable
price for each crop grazed, planted, or intended to be
planted for harvest on a whole farm.
``(3) Waiver for socially disadvantaged, limited resource,
or beginning farmer or rancher.--With respect to eligible
producers that are socially disadvantaged farmers or ranchers
or limited resource or beginning farmers or ranchers, as
determined by the Secretary, the Secretary may--
``(A) waive paragraph (1); and
``(B) provide disaster assistance under this section at a
level that the Secretary determines to be equitable and
appropriate.
``(4) Waiver for 2008 crop year.--In the case of an
eligible producer that suffered losses in an insurable
commodity or noninsurable commodity during the 2008 crop year
but does not meet the requirements of paragraph (1), the
Secretary shall waive paragraph (1) if the eligible producer
pays a fee in an amount equal to the applicable noninsured
crop assistance program fee or catastrophic risk protection
plan fee required under paragraph (1) to the Secretary not
later than 90 days after the date of enactment of this
subtitle.
``(5) Equitable relief.--
``(A) In general.--The Secretary may provide equitable
relief to eligible producers on a farm that are otherwise
ineligible or unintentionally fail to meet the requirements
of paragraph (1) for 1 or more crops on a farm on a case-by-
case basis, as determined by the Secretary.
``(B) 2008 crop year.--In the case of eligible producers on
a farm that suffered losses in an insurable commodity or
noninsurable commodity during the 2008 crop year, the
Secretary shall take special consideration to provide
equitable relief in cases in which the eligible producers
failed to meet the requirements of paragraph (1) due to the
enactment of this subtitle after the closing date of sales
periods for crop insurance under subtitle A and the
noninsured crop assistance program.
``(h) Payment Limitations.--
``(1) Definitions of legal entity and person.--In this
subsection, the terms `legal entity' and `person' have the
meaning given those terms in section 1001(a) of the Food
Security Act of 1985 (7 U.S.C. 1308(a) (as amended by section
1603 of the Food, Conservation, and Energy Act of 2008).
[[Page H4610]]
``(2) Amount.--The total amount of disaster assistance
payments received, directly or indirectly, by a person or
legal entity (excluding a joint venture or general
partnership) under this section (excluding payments received
under subsection (f)) may not exceed $100,000 for any crop
year.
``(3) AGI limitation.--Section 1001D of the Food Security
Act of 1985 (7 U.S.C. 1308-3a) or any successor provision
shall apply with respect to assistance provided under this
section.
``(4) Direct attribution.--Subsections (e) and (f) of
section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308)
or any successor provisions relating to direct attribution
shall apply with respect to assistance provided under this
section.
``(i) Period of Effectiveness.--This section shall be
effective only for losses that are incurred as the result of
a disaster, adverse weather, or other environmental condition
that occurs on or before September 30, 2011, as determined by
the Secretary.
``(j) No Duplicative Payments.--In implementing any other
program which makes disaster assistance payments (except for
indemnities made under subtitle A and section 196 of the
Federal Agriculture Improvement and Reform Act of 1996), the
Secretary shall prevent duplicative payments with respect to
the same loss for which a person receives a payment under
subsections (b), (c), (d), (e), or (f).
``(k) Application.--
``(1) In general.--Subject to paragraph (2) and
notwithstanding any provision of subtitle A, subtitle A shall
not apply to this subtitle.
``(2) Cross references.--Paragraph (1) shall not apply to a
specific reference in this subtitle to a provision of
subtitle A.''.
(b) Transition.--For purposes of the 2008 crop year, the
Secretary shall carry out subsections (f)(4) and (h) of
section 531 of the Federal Crop Insurance Act (as added by
subsection (a)) in accordance with the terms and conditions
of sections 1001 through 1001D of the Food Security Act of
1985 (16 U.S.C. 1308 et seq.), as in effect on September 30,
2007.
(c) Conforming Amendments.--
(1) Section 501 of the Federal Crop Insurance Act (7 U.S.C.
1501) is amended by striking the section heading and
enumerator and inserting the following:
``Subtitle A--Federal Crop Insurance Act
``SEC. 501. SHORT TITLE AND APPLICATION OF OTHER
PROVISIONS.''.
(2) Subtitle A of the Federal Crop Insurance Act (as
designated under paragraph (1)) is amended--
(A) by striking ``This title'' each place it appears and
inserting ``This subtitle''; and
(B) by striking ``this title'' each place it appears and
inserting ``this subtitle''.
SEC. 12034. FISHERIES DISASTER ASSISTANCE.
Of the funds of the Commodity Credit Corporation, the
Secretary of Agriculture shall transfer to the Secretary of
Commerce $170,000,000 for fiscal year 2008 for the National
Marine Fisheries Service to distribute to commercial and
recreational members of the fishing communities affected by
the salmon fishery failure in the States of California,
Oregon, and Washington designated under section 312(a) of the
Magnuson-Stevens Fishery Conservation and Management Act (16
U.S.C. 1861a(a)) on May 1, 2008, in accordance with that
section.
Subtitle B--Small Business Disaster Loan Program
SEC. 12051. SHORT TITLE.
This subtitle may be cited as the ``Small Business Disaster
Response and Loan Improvements Act of 2008''.
SEC. 12052. DEFINITIONS.
In this subtitle--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively;
(2) the term ``disaster area'' means an area affected by a
natural or other disaster, as determined for purposes of
paragraph (1) or (2) of section 7(b) of the Small Business
Act (15 U.S.C. 636(b)), during the period of such
declaration;
(3) the term ``disaster loan program of the
Administration'' means assistance under section 7(b) of the
Small Business Act (15 U.S.C. 636(b)), as amended by this
Act;
(4) the term ``disaster update period'' means the period
beginning on the date on which the President declares a major
disaster (including any major disaster relating to which the
Administrator declares eligibility for additional disaster
assistance under paragraph (9) of section 7(b) of the Small
Business Act (15 U.S.C. 636(b)), as added by this Act) and
ending on the date on which such declaration terminates;
(5) the term ``major disaster'' has the meaning given that
term in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122);
(6) the term ``small business concern'' has the meaning
given that term under section 3 of the Small Business Act (15
U.S.C. 632); and
(7) the term ``State'' means any State of the United
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Northern Mariana Islands, the Virgin Islands, Guam,
American Samoa, and any territory or possession of the United
States.
PART I--DISASTER PLANNING AND RESPONSE
SEC. 12061. ECONOMIC INJURY DISASTER LOANS TO NONPROFITS.
(a) In General.--Section 7(b)(2) of the Small Business Act
(15 U.S.C. 636(b)(2)) is amended--
(1) in the matter preceding subparagraph (A)--
(A) by inserting after ``small business concern'' the
following: ``, private nonprofit organization,''; and
(B) by inserting after ``the concern'' the following: ``,
the organization,''; and
(2) in subparagraph (D) by inserting after ``small business
concerns'' the following: ``, private nonprofit
organizations,''.
(b) Conforming Amendment.--Section 7(c)(5)(C) of the Small
Business Act (15 U.S.C. 636(c)(5)(C)) is amended by inserting
after ``business'' the following: ``, private nonprofit
organization,''.
SEC. 12062. COORDINATION OF DISASTER ASSISTANCE PROGRAMS WITH
FEMA.
The Small Business Act (15 U.S.C. 631 et seq.) is amended--
(1) by redesignating section 37 as section 44; and
(2) by inserting after section 36 the following:
``SEC. 37. COORDINATION OF DISASTER ASSISTANCE PROGRAMS WITH
FEMA.
``(a) Coordination Required.--The Administrator shall
ensure that the disaster assistance programs of the
Administration are coordinated, to the maximum extent
practicable, with the disaster assistance programs of the
Federal Emergency Management Agency.
``(b) Regulations Required.--The Administrator, in
consultation with the Administrator of the Federal Emergency
Management Agency, shall establish regulations to ensure that
each application for disaster assistance is submitted as
quickly as practicable to the Administration or directed to
the appropriate agency under the circumstances.
``(c) Completion; Revision.--The initial regulations shall
be completed not later than 270 days after the date of the
enactment of the Small Business Disaster Response and Loan
Improvements Act of 2008. Thereafter, the regulations shall
be revised on an annual basis.
``(d) Report.--The Administrator shall include a report on
the regulations whenever the Administration submits the
report required by section 43.''.
SEC. 12063. PUBLIC AWARENESS OF DISASTER DECLARATION AND
APPLICATION PERIODS.
(a) In General.--Section 7(b) of the Small Business Act (15
U.S.C. 636(b)) is amended by inserting immediately after
paragraph (3), the following:
``(4) Coordination with fema.--
``(A) In general.--Notwithstanding any other provision of
law, for any disaster declared under this subsection or major
disaster (including any major disaster relating to which the
Administrator declares eligibility for additional disaster
assistance under paragraph (9)), the Administrator, in
consultation with the Administrator of the Federal Emergency
Management Agency, shall ensure, to the maximum extent
practicable, that all application periods for disaster relief
under this Act correspond with application deadlines
established under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et seq.), or as
extended by the President.
``(B) Deadlines.--Notwithstanding any other provision of
law, not later than 10 days before the closing date of an
application period for a major disaster (including any major
disaster relating to which the Administrator declares
eligibility for additional disaster assistance under
paragraph (9)), the Administrator, in consultation with the
Administrator of the Federal Emergency Management Agency,
shall submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives a report that
includes--
``(i) the deadline for submitting applications for
assistance under this Act relating to that major disaster;
``(ii) information regarding the number of loan
applications and disbursements processed by the Administrator
relating to that major disaster for each day during the
period beginning on the date on which that major disaster was
declared and ending on the date of that report; and
``(iii) an estimate of the number of potential applicants
that have not submitted an application relating to that major
disaster.
``(5) Public awareness of disasters.--If a disaster is
declared under this subsection or the Administrator declares
eligibility for additional disaster assistance under
paragraph (9), the Administrator shall make every effort to
communicate through radio, television, print, and web-based
outlets, all relevant information needed by disaster loan
applicants, including--
``(A) the date of such declaration;
``(B) cities and towns within the area of such declaration;
``(C) loan application deadlines related to such disaster;
``(D) all relevant contact information for victim services
available through the Administration (including links to
small business development center websites);
``(E) links to relevant Federal and State disaster
assistance websites, including links to websites providing
information regarding assistance available from the Federal
Emergency Management Agency;
``(F) information on eligibility criteria for
Administration loan programs, including where such
applications can be found; and
``(G) application materials that clearly state the function
of the Administration as
[[Page H4611]]
the Federal source of disaster loans for homeowners and
renters.''.
(b) Marketing and Outreach.--Not later than 90 days after
the date of enactment of this Act, the Administrator shall
create a marketing and outreach plan that--
(1) encourages a proactive approach to the disaster relief
efforts of the Administration;
(2) makes clear the services provided by the
Administration, including contact information, application
information, and timelines for submitting applications, the
review of applications, and the disbursement of funds;
(3) describes the different disaster loan programs of the
Administration, including how they are made available and the
eligibility requirements for each loan program;
(4) provides for regional marketing, focusing on disasters
occurring in each region before the date of enactment of this
Act, and likely scenarios for disasters in each such region;
and
(5) ensures that the marketing plan is made available at
small business development centers and on the website of the
Administration.
(c) Technical and Conforming Amendments.--
(1) In general.--Section 3 of the Small Business Act (15
U.S.C. 632) is amended by adding at the end the following:
``(s) Major Disaster.--In this Act, the term `major
disaster' has the meaning given that term in section 102 of
the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5122).''.
(2) Technical correction.--Section 7(b)(2) of the Small
Business Act (15 U.S.C. 636(b)(2)) is amended by striking
``Disaster Relief and Emergency Assistance Act'' and
inserting ``Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.)''.
SEC. 12064. CONSISTENCY BETWEEN ADMINISTRATION REGULATIONS
AND STANDARD OPERATING PROCEDURES.
(a) In General.--The Administrator shall, promptly
following the date of enactment of this Act, conduct a study
of whether the standard operating procedures of the
Administration for loans offered under section 7(b) of the
Small Business Act (15 U.S.C. 636(b)) are consistent with the
regulations of the Administration for administering the
disaster loan program.
(b) Report.--Not later than 180 days after the date of
enactment of this Act, the Administrator shall submit to
Congress a report containing all findings and recommendations
of the study conducted under subsection (a).
SEC. 12065. INCREASING COLLATERAL REQUIREMENTS.
Section 7(c)(6) of the Small Business Act (15 U.S.C.
636(c)(6)) is amended by striking ``$10,000 or less'' and
inserting ``$14,000 or less (or such higher amount as the
Administrator determines appropriate in the event of a major
disaster)''.
SEC. 12066. PROCESSING DISASTER LOANS.
(a) Authority for Qualified Private Contractors to Process
Disaster Loans.--Section 7(b) of the Small Business Act (15
U.S.C. 636(b)) is amended by inserting immediately after
paragraph (5), as added by this Act, the following:
``(6) Authority for qualified private contractors.--
``(A) Disaster loan processing.--The Administrator may
enter into an agreement with a qualified private contractor,
as determined by the Administrator, to process loans under
this subsection in the event of a major disaster (including
any major disaster relating to which the Administrator
declares eligibility for additional disaster assistance under
paragraph (9)), under which the Administrator shall pay the
contractor a fee for each loan processed.
``(B) Loan loss verification services.--The Administrator
may enter into an agreement with a qualified lender or loss
verification professional, as determined by the
Administrator, to verify losses for loans under this
subsection in the event of a major disaster (including any
major disaster relating to which the Administrator declares
eligibility for additional disaster assistance under
paragraph (9)), under which the Administrator shall pay the
lender or verification professional a fee for each loan for
which such lender or verification professional verifies
losses.''.
(b) Coordination of Efforts Between the Administrator and
the Internal Revenue Service to Expedite Loan Processing.--
The Administrator and the Commissioner of Internal Revenue
shall, to the maximum extent practicable, ensure that all
relevant and allowable tax records for loan approval are
shared with loan processors in an expedited manner, upon
request by the Administrator.
SEC. 12067. INFORMATION TRACKING AND FOLLOW-UP SYSTEM.
The Small Business Act is amended by inserting after
section 37, as added by this Act, the following:
``SEC. 38. INFORMATION TRACKING AND FOLLOW-UP SYSTEM FOR
DISASTER ASSISTANCE.
``(a) System Required.--The Administrator shall develop,
implement, or maintain a centralized information system to
track communications between personnel of the Administration
and applicants for disaster assistance. The system shall
ensure that whenever an applicant for disaster assistance
communicates with such personnel on a matter relating to the
application, the following information is recorded:
``(1) The method of communication.
``(2) The date of communication.
``(3) The identity of the personnel.
``(4) A summary of the subject matter of the communication.
``(b) Follow-up Required.--The Administrator shall ensure
that an applicant for disaster assistance receives, by
telephone, mail, or electronic mail, follow-up communications
from the Administration at all critical stages of the
application process, including the following:
``(1) When the Administration determines that additional
information or documentation is required to process the
application.
``(2) When the Administration determines whether to approve
or deny the loan.
``(3) When the primary contact person managing the loan
application has changed.''.
SEC. 12068. INCREASED DEFERMENT PERIOD.
(a) In General.--Section 7 of the Small Business Act (15
U.S.C. 636) is amended--
(1) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively; and
(2) by inserting after subsection (e), as so redesignated,
the following:
``(f) Additional Requirements for 7(b) Loans.--
``(1) Increased deferment authorized.--
``(A) In general.--In making loans under subsection (b),
the Administrator may provide, to the person receiving the
loan, an option to defer repayment on the loan.
``(B) Period.--The period of a deferment under subparagraph
(A) may not exceed 4 years.''.
(b) Technical and Conforming Amendments.--The Small
Business Act (15 U.S.C. 631 et seq.) is amended--
(1) in section 4(c)--
(A) in paragraph (1), by striking ``7(c)(2)'' and inserting
``7(d)(2)''; and
(B) in paragraph (2)--
(i) by striking ``7(c)(2)'' and inserting ``7(d)(2)''; and
(ii) by striking ``7(e),''; and
(2) in section 7(b), in the undesignated matter following
paragraph (3)--
(A) by striking ``That the provisions of paragraph (1) of
subsection (c)'' and inserting ``That the provisions of
paragraph (1) of subsection (d)''; and
(B) by striking ``Notwithstanding the provisions of any
other law the interest rate on the Administration's share of
any loan made under subsection (b) except as provided in
subsection (c),'' and inserting ``Notwithstanding any other
provision of law, and except as provided in subsection (d),
the interest rate on the Administration's share of any loan
made under subsection (b)''.
SEC. 12069. DISASTER PROCESSING REDUNDANCY.
The Small Business Act (15 U.S.C. 631 et seq.) is amended
by inserting after section 38, as added by this Act, the
following:
``SEC. 39. DISASTER PROCESSING REDUNDANCY.
``(a) In General.--The Administrator shall ensure that the
Administration has in place a facility for disaster loan
processing that, whenever the Administration's primary
facility for disaster loan processing becomes unavailable, is
able to take over all disaster loan processing from that
primary facility within 2 days.
``(b) Authorization of Appropriations.--There are
authorized to be appropriated such sums as may be necessary
to carry out this section.''.
SEC. 12070. NET EARNINGS CLAUSES PROHIBITED.
Section 7 of the Small Business Act (15 U.S.C. 636) is
amended by inserting after subsection (f), as added by this
Act, the following:
``(g) Net Earnings Clauses Prohibited for 7(b) Loans.--In
making loans under subsection (b), the Administrator shall
not require the borrower to pay any non-amortized amount for
the first five years after repayment begins.''.
SEC. 12071. ECONOMIC INJURY DISASTER LOANS IN CASES OF ICE
STORMS AND BLIZZARDS.
Section 3(k)(2) of the Small Business Act (15 U.S.C.
632(k)(2)) is amended--
(1) in subparagraph (A) by striking ``and'';
(2) in subparagraph (B) by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(C) ice storms and blizzards.''.
SEC. 12072. DEVELOPMENT AND IMPLEMENTATION OF MAJOR DISASTER
RESPONSE PLAN.
(a) In General.--Not later than 3 months after the date of
enactment of this Act, the Administrator shall--
(1) by rule, amend the 2006 Atlantic hurricane season
disaster response plan of the Administration (in this section
referred to as the ``disaster response plan'') to apply to
major disasters; and
(2) submit a report to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives detailing the
amendments to the disaster response plan.
(b) Contents.--The report required under subsection (a)(2)
shall include--
(1) any updates or modifications made to the disaster
response plan since the report regarding the disaster
response plan submitted to Congress on July 14, 2006;
(2) a description of how the Administrator plans to use and
integrate District Office personnel of the Administration in
the response to a major disaster, including information on
the use of personnel for loan processing and loan
disbursement;
[[Page H4612]]
(3) a description of the disaster scalability model of the
Administration and on what basis or function the plan is
scaled;
(4) a description of how the agency-wide Disaster Oversight
Council is structured, which offices comprise its membership,
and whether the Associate Deputy Administrator for
Entrepreneurial Development of the Administration is a
member;
(5) a description of how the Administrator plans to
coordinate the disaster efforts of the Administration with
State and local government officials, including
recommendations on how to better incorporate State
initiatives or programs, such as State-administered bridge
loan programs, into the disaster response of the
Administration;
(6) recommendations, if any, on how the Administration can
better coordinate its disaster response operations with the
operations of other Federal, State, and local entities;
(7) any surge plan for the disaster loan program of the
Administration in effect on or after August 29, 2005
(including surge plans for loss verification, loan
processing, mailroom, customer service or call center
operations, and a continuity of operations plan);
(8) the number of full-time equivalent employees and job
descriptions for the planning and disaster response staff of
the Administration;
(9) the in-service and preservice training procedures for
disaster response staff of the Administration;
(10) information on the logistical support plans of the
Administration (including equipment and staffing needs, and
detailed information on how such plans will be scalable
depending on the size and scope of the major disaster;
(11) a description of the findings and recommendations of
the Administrator, if any, based on a review of the response
of the Administration to Hurricane Katrina of 2005, Hurricane
Rita of 2005, and Hurricane Wilma of 2005; and
(12) a plan for how the Administrator, in consultation with
the Administrator of the Federal Emergency Management Agency,
will coordinate the provision of accommodations and necessary
resources for disaster assistance personnel to effectively
perform their responsibilities in the aftermath of a major
disaster.
(c) Biennial Disaster Simulation Exercise.--
(1) Exercise required.--The Administrator shall conduct a
disaster simulation exercise at least once every 2 fiscal
years. The exercise shall include the participation of, at a
minimum, not less than 50 percent of the individuals in the
disaster reserve corps and shall test, at maximum capacity,
all of the information technology and telecommunications
systems of the Administration that are vital to the
activities of the Administration during such a disaster.
(2) Report.--The Administrator shall include a report on
the disaster simulation exercises conducted under paragraph
(1) each time the Administration submits a report required
under section 43 of the Small Business Act, as added by this
Act.
SEC. 12073. DISASTER PLANNING RESPONSIBILITIES.
(a) Assignment of Small Business Administration Disaster
Planning Responsibilities.--The disaster planning function of
the Administration shall be assigned to an individual
appointed by the Administrator who--
(1) is not an employee of the Office of Disaster Assistance
of the Administration;
(2) has proven management ability;
(3) has substantial knowledge in the field of disaster
readiness and emergency response; and
(4) has demonstrated significant experience in the area of
disaster planning.
(b) Responsibilities.--The individual assigned the disaster
planning function of the Administration shall report directly
and solely to the Administrator and shall be responsible
for--
(1) creating, maintaining, and implementing the
comprehensive disaster response plan of the Administration
described in section 12072;
(2) ensuring there are in-service and pre-service training
procedures for the disaster response staff of the
Administration;
(3) coordinating and directing the training exercises of
the Administration relating to disasters, including disaster
simulation exercises and disaster exercises coordinated with
other government departments and agencies; and
(4) other responsibilities relevant to disaster planning
and readiness, as determined by the Administrator.
(c) Coordination.--In carrying out the responsibilities
described in subsection (b), the individual assigned the
disaster planning function of the Administration shall
coordinate with--
(1) the Office of Disaster Assistance of the
Administration;
(2) the Administrator of the Federal Emergency Management
Agency; and
(3) other Federal, State, and local disaster planning
offices, as necessary.
(d) Resources.--The Administrator shall ensure that the
individual assigned the disaster planning function of the
Administration has adequate resources to carry out the duties
under this section.
(e) Report.--Not later than 30 days after the date of
enactment of this Act, the Administrator shall submit to the
Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of
Representatives a report containing--
(1) a description of the actions of the Administrator to
assign an individual the disaster planning function of the
Administration;
(2) information detailing the background and expertise of
the individual assigned; and
(3) information on the status of the implementation of the
responsibilities described in subsection (b).
SEC. 12074. ASSIGNMENT OF EMPLOYEES OF THE OFFICE OF DISASTER
ASSISTANCE AND DISASTER CADRE.
(a) In General.--Section 7(b) of the Small Business Act (15
U.S.C. 636(b)) is amended by inserting immediately after
paragraph (6), as added by this Act, the following:
``(7) Disaster assistance employees.--
``(A) In general.--In carrying out this section, the
Administrator may, where practicable, ensure that the number
of full-time equivalent employees--
``(i) in the Office of the Disaster Assistance is not fewer
than 800; and
``(ii) in the Disaster Cadre of the Administration is not
fewer than 1,000.
``(B) Report.--In carrying out this subsection, if the
number of full-time employees for either the Office of
Disaster Assistance or the Disaster Cadre of the
Administration is below the level described in subparagraph
(A) for that office, not later than 21 days after the date on
which that staffing level decreased below the level described
in subparagraph (A), the Administrator shall submit to the
Committee on Appropriations and the Committee on Small
Business and Entrepreneurship of the Senate and the Committee
on Appropriations and Committee on Small Business of the
House of Representatives, a report--
``(i) detailing staffing levels on that date;
``(ii) requesting, if practicable and determined
appropriate by the Administrator, additional funds for
additional employees; and
``(iii) containing such additional information, as
determined appropriate by the Administrator.''.
SEC. 12075. COMPREHENSIVE DISASTER RESPONSE PLAN.
The Small Business Act (15 U.S.C. 631 et seq.) is amended
inserting after section 39, as added by this Act, the
following:
``SEC. 40. COMPREHENSIVE DISASTER RESPONSE PLAN.
``(a) Plan Required.--The Administrator shall develop,
implement, or maintain a comprehensive written disaster
response plan. The plan shall include the following:
``(1) For each region of the Administration, a description
of the disasters most likely to occur in that region.
``(2) For each disaster described under paragraph (1)--
``(A) an assessment of the disaster;
``(B) an assessment of the demand for Administration
assistance most likely to occur in response to the disaster;
``(C) an assessment of the needs of the Administration,
with respect to such resources as information technology,
telecommunications, human resources, and office space, to
meet the demand referred to in subparagraph (B); and
``(D) guidelines pursuant to which the Administration will
coordinate with other Federal agencies and with State and
local authorities to best respond to the demand referred to
in subparagraph (B) and to best use the resources referred to
in that subparagraph.
``(b) Completion; Revision.--The first plan required by
subsection (a) shall be completed not later than 180 days
after the date of the enactment of this section. Thereafter,
the Administrator shall update the plan on an annual basis
and following any major disaster relating to which the
Administrator declares eligibility for additional disaster
assistance under section 7(b)(9).
``(c) Knowledge Required.--The Administrator shall carry
out subsections (a) and (b) through an individual with
substantial knowledge in the field of disaster readiness and
emergency response.
``(d) Report.--The Administrator shall include a report on
the plan whenever the Administration submits the report
required by section 43.''.
SEC. 12076. PLANS TO SECURE SUFFICIENT OFFICE SPACE.
The Small Business Act is amended by inserting after
section 40, as added by this Act, the following:
``SEC. 41. PLANS TO SECURE SUFFICIENT OFFICE SPACE.
``(a) Plans Required.--The Administrator shall develop
long-term plans to secure sufficient office space to
accommodate an expanded workforce in times of disaster.
``(b) Report.--The Administrator shall include a report on
the plans developed under subsection (a) each time the
Administration submits a report required under section 43.''.
SEC. 12077. APPLICANTS THAT HAVE BECOME A MAJOR SOURCE OF
EMPLOYMENT DUE TO CHANGED ECONOMIC
CIRCUMSTANCES.
Section 7(b)(3)(E) of the Small Business Act (15 U.S.C.
636(b)(3)(E)) is amended by inserting after ``constitutes''
the following: ``, or have become due to changed economic
circumstances,''.
SEC. 12078. DISASTER LOAN AMOUNTS.
(a) Increased Loan Caps.--Section 7(b) of the Small
Business Act (15 U.S.C. 636(b)) is amended by inserting
immediately after paragraph (7), as added by this Act, the
following:
[[Page H4613]]
``(8) Increased loan caps.--
``(A) Aggregate loan amounts.--Except as provided in
subparagraph (B), and notwithstanding any other provision of
law, the aggregate loan amount outstanding and committed to a
borrower under this subsection may not exceed $2,000,000.
``(B) Waiver authority.--The Administrator may, at the
discretion of the Administrator, increase the aggregate loan
amount under subparagraph (A) for loans relating to a
disaster to a level established by the Administrator, based
on appropriate economic indicators for the region in which
that disaster occurred.''.
(b) Disaster Mitigation.--
(1) In general.--Section 7(b)(1)(A) of the Small Business
Act (15 U.S.C. 636(b)(1)(A)) is amended by inserting ``of the
aggregate costs of such damage or destruction (whether or not
compensated for by insurance or otherwise)'' after ``20 per
centum''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to a loan or guarantee made after
the date of enactment of this Act.
(c) Technical Amendments.--Section 7(b) of the Small
Business Act (15 U.S.C. 636(b)) is amended--
(1) in the matter preceding paragraph (1), by striking
``the, Administration'' and inserting ``the Administration'';
and
(2) in the undesignated matter at the end--
(A) by striking ``, (2), and (4)'' and inserting ``and
(2)''; and
(B) by striking ``, (2), or (4)'' and inserting ``(2)''.
SEC. 12079. SMALL BUSINESS BONDING THRESHOLD.
(a) In General.--Except as provided in subsection (b), and
notwithstanding any other provision of law, for any
procurement related to a major disaster, the Administrator
may, upon such terms and conditions as the Administrator may
prescribe, guarantee and enter into commitments to guarantee
any surety against loss resulting from a breach of the terms
of a bid bond, payment bond, performance bond, or bonds
ancillary thereto, by a principal on any total work order or
contract amount at the time of bond execution that does not
exceed $5,000,000.
(b) Increase of Amount.--Upon request of the head of any
Federal agency other than the Administration involved in
reconstruction efforts in response to a major disaster, the
Administrator may guarantee and enter into a commitment to
guarantee any security against loss under subsection (a) on
any total work order or contract amount at the time of bond
execution that does not exceed $10,000,000.
(c) Limitation on Use of Other Funds.--The Administrator
may carry out this section only with amounts appropriated in
advance specifically to carry out this section.
PART II--DISASTER LENDING
SEC. 12081. ELIGIBILITY FOR ADDITIONAL DISASTER ASSISTANCE.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b))
is amended by inserting immediately after paragraph (8), as
added by this Act, the following:
``(9) Declaration of eligibility for additional disaster
assistance.--
``(A) In general.--If the President declares a major
disaster, the Administrator may declare eligibility for
additional disaster assistance in accordance with this
paragraph.
``(B) Threshold.--A major disaster for which the
Administrator declares eligibility for additional disaster
assistance under this paragraph shall--
``(i) have resulted in extraordinary levels of casualties
or damage or disruption severely affecting the population
(including mass evacuations), infrastructure, environment,
economy, national morale, or government functions in an area;
``(ii) be comparable to the description of a catastrophic
incident in the National Response Plan of the Administration,
or any successor thereto, unless there is no successor to
such plan, in which case this clause shall have no force or
effect; and
``(iii) be of such size and scope that--
``(I) the disaster assistance programs under the other
paragraphs under this subsection are incapable of providing
adequate and timely assistance to individuals or business
concerns located within the disaster area; or
``(II) a significant number of business concerns outside
the disaster area have suffered disaster-related substantial
economic injury as a result of the incident.''.
SEC. 12082. ADDITIONAL ECONOMIC INJURY DISASTER LOAN
ASSISTANCE.
Paragraph (9) of section 7(b) of the Small Business Act (15
U.S.C. 636(b)), as added by section 12081, is amended by
adding at the end the following:
``(C) Additional economic injury disaster loan
assistance.--
``(i) In general.--If the Administrator declares
eligibility for additional disaster assistance under this
paragraph, the Administrator may make such loans under this
subparagraph (either directly or in cooperation with banks or
other lending institutions through agreements to participate
on an immediate or deferred basis) as the Administrator
determines appropriate to eligible small business concerns
located anywhere in the United States.
``(ii) Processing time.--
``(I) In general.--If the Administrator determines that the
average processing time for applications for disaster loans
under this subparagraph relating to a specific major disaster
is more than 15 days, the Administrator shall give priority
to the processing of such applications submitted by eligible
small business concerns located inside the disaster area,
until the Administrator determines that the average
processing time for such applications is not more than 15
days.
``(II) Suspension of applications from outside disaster
area.--If the Administrator determines that the average
processing time for applications for disaster loans under
this subparagraph relating to a specific major disaster is
more than 30 days, the Administrator shall suspend the
processing of such applications submitted by eligible small
business concerns located outside the disaster area, until
the Administrator determines that the average processing time
for such applications is not more than 15 days.
``(iii) Loan terms.--A loan under this subparagraph shall
be made on the same terms as a loan under paragraph (2).
``(D) Definitions.--In this paragraph--
``(i) the term `disaster area' means the area for which the
applicable major disaster was declared;
``(ii) the term `disaster-related substantial economic
injury' means economic harm to a business concern that
results in the inability of the business concern to--
``(I) meet its obligations as it matures;
``(II) meet its ordinary and necessary operating expenses;
or
``(III) market, produce, or provide a product or service
ordinarily marketed, produced, or provided by the business
concern because the business concern relies on materials from
the disaster area or sells or markets in the disaster area;
and
``(iii) the term `eligible small business concern' means a
small business concern--
``(I) that has suffered disaster-related substantial
economic injury as a result of the applicable major disaster;
and
``(II)(aa) for which not less than 25 percent of the market
share of that small business concern is from business
transacted in the disaster area;
``(bb) for which not less than 25 percent of an input into
a production process of that small business concern is from
the disaster area; or
``(cc) that relies on a provider located in the disaster
area for a service that is not readily available
elsewhere.''.
SEC. 12083. PRIVATE DISASTER LOANS.
(a) In General.--Section 7 of the Small Business Act (15
U.S.C. 636) is amended by inserting after subsection (b) the
following:
``(c) Private Disaster Loans.--
``(1) Definitions.--In this subsection--
``(A) the term `disaster area' means any area for which the
President declared a major disaster relating to which the
Administrator declares eligibility for additional disaster
assistance under subsection (b)(9), during the period of that
major disaster declaration;
``(B) the term `eligible individual' means an individual
who is eligible for disaster assistance under subsection
(b)(1) relating to a major disaster relating to which the
Administrator declares eligibility for additional disaster
assistance under subsection (b)(9);
``(C) the term `eligible small business concern' means a
business concern that is--
``(i) a small business concern, as defined under this Act;
or
``(ii) a small business concern, as defined in section 103
of the Small Business Investment Act of 1958;
``(D) the term `preferred lender' means a lender
participating in the Preferred Lender Program;
``(E) the term `Preferred Lender Program' has the meaning
given that term in subsection (a)(2)(C)(ii); and
``(F) the term `qualified private lender' means any
privately-owned bank or other lending institution that--
``(i) is not a preferred lender; and
``(ii) the Administrator determines meets the criteria
established under paragraph (10).
``(2) Program required.--The Administrator shall carry out
a program, to be known as the Private Disaster Assistance
program, under which the Administration may guarantee timely
payment of principal and interest, as scheduled, on any loan
made to an eligible small business concern located in a
disaster area and to an eligible individual.
``(3) Use of loans.--A loan guaranteed by the Administrator
under this subsection may be used for any purpose authorized
under subsection (b).
``(4) Online applications.--
``(A) Establishment.--The Administrator may establish,
directly or through an agreement with another entity, an
online application process for loans guaranteed under this
subsection.
``(B) Other federal assistance.--The Administrator may
coordinate with the head of any other appropriate Federal
agency so that any application submitted through an online
application process established under this paragraph may be
considered for any other Federal assistance program for
disaster relief.
``(C) Consultation.--In establishing an online application
process under this paragraph, the Administrator shall consult
with appropriate persons from the public and private sectors,
including private lenders.
``(5) Maximum amounts.--
``(A) Guarantee percentage.--The Administrator may
guarantee not more than 85 percent of a loan under this
subsection.
``(B) Loan amount.--The maximum amount of a loan guaranteed
under this subsection shall be $2,000,000.
[[Page H4614]]
``(6) Terms and conditions.--A loan guaranteed under this
subsection shall be made under the same terms and conditions
as a loan under subsection (b).
``(7) Lenders.--
``(A) In general.--A loan guaranteed under this subsection
made to--
``(i) a qualified individual may be made by a preferred
lender; and
``(ii) a qualified small business concern may be made by a
qualified private lender or by a preferred lender that also
makes loans to qualified individuals.
``(B) Compliance.--If the Administrator determines that a
preferred lender knowingly failed to comply with the
underwriting standards for loans guaranteed under this
subsection or violated the terms of the standard operating
procedure agreement between that preferred lender and the
Administration, the Administrator shall do 1 or more of the
following:
``(i) Exclude the preferred lender from participating in
the program under this subsection.
``(ii) Exclude the preferred lender from participating in
the Preferred Lender Program for a period of not more than 5
years.
``(8) Fees.--
``(A) In general.--The Administrator may not collect a
guarantee fee under this subsection.
``(B) Origination fee.--The Administrator may pay a
qualified private lender or preferred lender an origination
fee for a loan guaranteed under this subsection in an amount
agreed upon in advance between the qualified private lender
or preferred lender and the Administrator.
``(9) Documentation.--A qualified private lender or
preferred lender may use its own loan documentation for a
loan guaranteed by the Administrator under this subsection,
to the extent authorized by the Administrator. The ability of
a lender to use its own loan documentation for a loan
guaranteed under this subsection shall not be considered part
of the criteria for becoming a qualified private lender under
the regulations promulgated under paragraph (10).
``(10) Implementation regulations.--
``(A) In general.--Not later than 1 year after the date of
enactment of the Small Business Disaster Response and Loan
Improvements Act of 2008, the Administrator shall issue final
regulations establishing permanent criteria for qualified
private lenders.
``(B) Report to congress.--Not later than 6 months after
the date of enactment of the Small Business Disaster Response
and Loan Improvements Act of 2008, the Administrator shall
submit a report on the progress of the regulations required
by subparagraph (A) to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives.
``(11) Authorization of appropriations.--
``(A) In general.--Amounts necessary to carry out this
subsection shall be made available from amounts appropriated
to the Administration to carry out subsection (b).
``(B) Authority to reduce interest rates and other terms
and conditions.--Funds appropriated to the Administration to
carry out this subsection, may be used by the Administrator
to meet the loan terms and conditions specified in paragraph
(6).
``(12) Purchase of loans.--The Administrator may enter into
an agreement with a qualified private lender or preferred
lender to purchase any loan guaranteed under this
subsection.''.
(b) Effective Date.--The amendments made by this section
shall apply to any major disaster declared on or after the
date of enactment of this Act.
SEC. 12084. IMMEDIATE DISASTER ASSISTANCE PROGRAM.
The Small Business Act is amended by inserting after
section 41, as added by this Act, the following:
``SEC. 42. IMMEDIATE DISASTER ASSISTANCE PROGRAM.
``(a) Program Required.--The Administrator shall carry out
a program, to be known as the Immediate Disaster Assistance
program, under which the Administration participates on a
deferred (guaranteed) basis in 85 percent of the balance of
the financing outstanding at the time of disbursement of the
loan if such balance is less than or equal to $25,000 for
businesses affected by a disaster.
``(b) Eligibility Requirement.--To receive a loan
guaranteed under subsection (a), the applicant shall also
apply for, and meet basic eligibility standards for, a loan
under subsection (b) or (c) of section 7.
``(c) Use of Proceeds.--A person who receives a loan under
subsection (b) or (c) of section 7 shall use the proceeds of
that loan to repay all loans guaranteed under subsection (a),
if any, before using the proceeds for any other purpose.
``(d) Loan Terms.--
``(1) No prepayment penalty.--There shall be no prepayment
penalty on a loan guaranteed under subsection (a).
``(2) Repayment.--A person who receives a loan guaranteed
under subsection (a) and who is disapproved for a loan under
subsection (b) or (c) of section 7, as the case may be, shall
repay the loan guaranteed under subsection (a) not later than
the date established by the Administrator, which may not be
earlier than 10 years after the date on which the loan
guaranteed under subsection is disbursed.
``(e) Approval or Disapproval.--The Administrator shall
ensure that each applicant for a loan under the program
receives a decision approving or disapproving of the
application within 36 hours after the Administration receives
the application.''.
SEC. 12085. EXPEDITED DISASTER ASSISTANCE LOAN PROGRAM.
(a) Definition.--In this section, the term ``program''
means the expedited disaster assistance business loan program
established under subsection (b).
(b) Creation of Program.--The Administrator shall take such
administrative action as is necessary to establish and
implement an expedited disaster assistance business loan
program under which the Administration may, on an expedited
basis, guarantee timely payment of principal and interest, as
scheduled on any loan made to an eligible small business
concern under paragraph (9) of section 7(b) of the Small
Business Act (15 U.S.C. 636(b)), as added by this Act.
(c) Consultation Required.--In establishing the program,
the Administrator shall consult with--
(1) appropriate personnel of the Administration (including
District Office personnel of the Administration);
(2) appropriate technical assistance providers (including
small business development centers);
(3) appropriate lenders and credit unions;
(4) the Committee on Small Business and Entrepreneurship of
the Senate; and
(5) the Committee on Small Business of the House of
Representatives.
(d) Rules.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall issue rules in
final form establishing and implementing the program in
accordance with this section. Such rules shall apply as
provided for in this section, beginning 90 days after their
issuance in final form.
(2) Contents.--The rules promulgated under paragraph (1)
shall--
(A) identify whether appropriate uses of funds under the
program may include--
(i) paying employees;
(ii) paying bills and other financial obligations;
(iii) making repairs;
(iv) purchasing inventory;
(v) restarting or operating a small business concern in the
community in which it was conducting operations prior to the
applicable major disaster, or to a neighboring area, county,
or parish in the disaster area; or
(vi) covering additional costs until the small business
concern is able to obtain funding through insurance claims,
Federal assistance programs, or other sources; and
(B) set the terms and conditions of any loan made under the
program, subject to paragraph (3).
(3) Terms and conditions.--A loan guaranteed by the
Administration under this section--
(A) shall be for not more than $150,000;
(B) shall be a short-term loan, not to exceed 180 days,
except that the Administrator may extend such term as the
Administrator determines necessary or appropriate on a case-
by-case basis;
(C) shall have an interest rate not to exceed 300 basis
points above the interest rate established by the Board of
Governors of the Federal Reserve System that 1 bank charges
another for reserves that are lent on an overnight basis on
the date the loan is made;
(D) shall have no prepayment penalty;
(E) may only be made to a borrower that meets the
requirements for a loan under section 7(b) of the Small
Business Act (15 U.S.C. 636(b)), as amended by this Act;
(F) may be refinanced as part of any subsequent disaster
assistance provided under section 7(b) of the Small Business
Act (15 U.S.C. 636(b)), as amended by this Act;
(G) may receive expedited loss verification and loan
processing, if the applicant is--
(i) a major source of employment in the disaster area
(which shall be determined in the same manner as under
section 7(b)(3)(B) of the Small Business Act (15 U.S.C.
636(b)(3)(B))); or
(ii) vital to recovery efforts in the region (including
providing debris removal services, manufactured housing, or
building materials); and
(H) shall be subject to such additional terms as the
Administrator determines necessary or appropriate.
(e) Report to Congress.--Not later than 5 months after the
date of enactment of this Act, the Administrator shall report
to the Committee on Small Business and Entrepreneurship of
the Senate and the Committee on Small Business of the House
of Representatives on the progress of the Administrator in
establishing the program.
(f) Authorization.--There are authorized to be appropriated
to the Administrator such sums as are necessary to carry out
this section.
SEC. 12086. GULF COAST DISASTER LOAN REFINANCING PROGRAM.
(a) In General.--The Administrator may carry out a program
to refinance Gulf Coast disaster loans (in this section
referred to as the ``program'').
(b) Terms.--The terms of a Gulf Coast disaster loan
refinanced under the program shall be identical to the terms
of the original loan, except that the Administrator may
provide an option to defer repayment on the loan. A deferment
under the program shall end not later than 4 years after the
date on which the initial disbursement under the original
loan was made.
(c) Amount.--The amount of a Gulf Coast disaster loan
refinanced under the program
[[Page H4615]]
shall not exceed the amount of the original loan.
(d) Disclosure of Accrued Interest.--If the Administrator
provides an option to defer repayment under the program, the
Administrator shall disclose the accrued interest that must
be paid under the option.
(e) Definition.--In this section, the term ``Gulf Coast
disaster loan'' means a loan--
(1) made under section 7(b) of the Small Business Act (15
U.S.C. 636(b));
(2) in response to Hurricane Katrina of 2005, Hurricane
Rita of 2005, or Hurricane Wilma of 2005; and
(3) to a small business concern located in a county or
parish designated by the Administrator as a disaster area by
reason of a hurricane described in paragraph (2) under
disaster declaration 10176, 10177, 10178, 10179, 10180,
10181, 10203, 10204, 10205, 10206, 10222, or 10223.
(f) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this section.
PART III--MISCELLANEOUS
SEC. 12091. REPORTS ON DISASTER ASSISTANCE.
(a) Monthly Accounting Report to Congress.--
(1) Reporting requirements.--Not later than the fifth
business day of each month during the applicable period for a
major disaster, the Administrator shall submit to the
Committee on Small Business and Entrepreneurship and the
Committee on Appropriations of the Senate and to the
Committee on Small Business and the Committee on
Appropriations of the House of Representatives a report on
the operation of the disaster loan program authorized under
section 7 of the Small Business Act (15 U.S.C. 636) for that
major disaster during the preceding month.
(2) Contents.--Each report submitted under paragraph (1)
shall include--
(A) the daily average lending volume, in number of loans
and dollars, and the percent by which each category has
increased or decreased since the previous report under
paragraph (1);
(B) the weekly average lending volume, in number of loans
and dollars, and the percent by which each category has
increased or decreased since the previous report under
paragraph (1);
(C) the amount of funding spent over the month for loans,
both in appropriations and program level, and the percent by
which each category has increased or decreased since the
previous report under paragraph (1);
(D) the amount of funding available for loans, both in
appropriations and program level, and the percent by which
each category has increased or decreased since the previous
report under paragraph (1), noting the source of any
additional funding;
(E) an estimate of how long the available funding for such
loans will last, based on the spending rate;
(F) the amount of funding spent over the month for staff,
along with the number of staff, and the percent by which each
category has increased or decreased since the previous report
under paragraph (1);
(G) the amount of funding spent over the month for
administrative costs, and the percent by which such spending
has increased or decreased since the previous report under
paragraph (1);
(H) the amount of funding available for salaries and
expenses combined, and the percent by which such funding has
increased or decreased since the previous report under
paragraph (1), noting the source of any additional funding;
and
(I) an estimate of how long the available funding for
salaries and expenses will last, based on the spending rate.
(b) Weekly Disaster Updates to Congress for Presidentially
Declared Disasters.--
(1) In general.--Each week during a disaster update period,
the Administration shall submit to the Committee on Small
Business and Entrepreneurship of the Senate and to the
Committee on Small Business of the House of Representatives a
report on the operation of the disaster loan program of the
Administration for the area in which the President declared a
major disaster.
(2) Contents.--Each report submitted under paragraph (1)
shall include--
(A) the number of Administration staff performing loan
processing, field inspection, and other duties for the
declared disaster, and the allocations of such staff in the
disaster field offices, disaster recovery centers, workshops,
and other Administration offices nationwide;
(B) the daily number of applications received from
applicants in the relevant area, as well as a breakdown of
such figures by State;
(C) the daily number of applications pending application
entry from applicants in the relevant area, as well as a
breakdown of such figures by State;
(D) the daily number of applications withdrawn by
applicants in the relevant area, as well as a breakdown of
such figures by State;
(E) the daily number of applications summarily declined by
the Administration from applicants in the relevant area, as
well as a breakdown of such figures by State;
(F) the daily number of applications declined by the
Administration from applicants in the relevant area, as well
as a breakdown of such figures by State;
(G) the daily number of applications in process from
applicants in the relevant area, as well as a breakdown of
such figures by State;
(H) the daily number of applications approved by the
Administration from applicants in the relevant area, as well
as a breakdown of such figures by State;
(I) the daily dollar amount of applications approved by the
Administration from applicants in the relevant area, as well
as a breakdown of such figures by State;
(J) the daily amount of loans dispersed, both partially and
fully, by the Administration to applicants in the relevant
area, as well as a breakdown of such figures by State;
(K) the daily dollar amount of loans disbursed, both
partially and fully, from the relevant area, as well as a
breakdown of such figures by State;
(L) the number of applications approved, including dollar
amount approved, as well as applications partially and fully
disbursed, including dollar amounts, since the last report
under paragraph (1); and
(M) the declaration date, physical damage closing date,
economic injury closing date, and number of counties included
in the declaration of a major disaster.
(c) Periods When Additional Disaster Assistance Is Made
Available.--
(1) In general.--During any period for which the
Administrator declares eligibility for additional disaster
assistance under paragraph (9) of section 7(b) of the Small
Business Act (15 U.S.C. 632(b)), as amended by this Act, the
Administrator shall, on a monthly basis, submit to the
Committee on Small Business and Entrepreneurship of the
Senate and to the Committee on Small Business of the House of
Representatives a report on the disaster assistance
operations of the Administration with respect to the
applicable major disaster.
(2) Contents.--Each report submitted under paragraph (1)
shall specify--
(A) the number of applications for disaster assistance
distributed;
(B) the number of applications for disaster assistance
received;
(C) the average time for the Administration to approve or
disapprove an application for disaster assistance;
(D) the amount of disaster loans approved;
(E) the average time for initial disbursement of disaster
loan proceeds; and
(F) the amount of disaster loan proceeds disbursed.
(d) Notice of the Need for Supplemental Funds.--On the same
date that the Administrator notifies any committee of the
Senate or the House of Representatives that supplemental
funding is necessary for the disaster loan program of the
Administration in any fiscal year, the Administrator shall
notify in writing the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives regarding the need
for supplemental funds for that loan program.
(e) Report on Contracting.--
(1) In general.--Not later than 6 months after the date on
which the President declares a major disaster, and every 6
months thereafter until the date that is 18 months after the
date on which the major disaster was declared, the
Administrator shall submit a report to the Committee on Small
Business and Entrepreneurship of the Senate and to the
Committee on Small Business of the House of Representatives
regarding Federal contracts awarded as a result of that major
disaster.
(2) Contents.--Each report submitted under paragraph (1)
shall include--
(A) the total number of contracts awarded as a result of
that major disaster;
(B) the total number of contracts awarded to small business
concerns as a result of that major disaster;
(C) the total number of contracts awarded to women and
minority-owned businesses as a result of that major disaster;
and
(D) the total number of contracts awarded to local
businesses as a result of that major disaster.
(f) Report on Loan Approval Rate.--
(1) In general.--Not later than 6 months after the date of
enactment of this Act, the Administrator shall submit a
report to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives detailing how the
Administration can improve the processing of applications
under the disaster loan program of the Administration.
(2) Contents.--The report submitted under paragraph (1)
shall include--
(A) recommendations, if any, regarding--
(i) staffing levels during a major disaster;
(ii) how to improve the process for processing, approving,
and disbursing loans under the disaster loan program of the
Administration, to ensure that the maximum assistance is
provided to victims in a timely manner;
(iii) the viability of using alternative methods for
assessing the ability of an applicant to repay a loan,
including the credit score of the applicant on the day before
the date on which the disaster for which the applicant is
seeking assistance was declared;
(iv) methods, if any, for the Administration to expedite
loss verification and loan processing of disaster loans
during a major disaster for businesses affected by, and
located in the area for which the President declared, the
major disaster that are a major source of employment in the
area or are vital to recovery efforts in the region
(including providing debris removal services, manufactured
housing, or building materials);
(v) legislative changes, if any, needed to implement
findings from the Accelerated
[[Page H4616]]
Disaster Response Initiative of the Administration; and
(vi) a description of how the Administration plans to
integrate and coordinate the response to a major disaster
with the technical assistance programs of the Administration;
and
(B) the plans of the Administrator for implementing any
recommendation made under subparagraph (A).
(g) Reports on Disaster Assistance.--The Small Business Act
is amended by inserting after section 42, as added by this
Act, the following:
``SEC. 43. ANNUAL REPORTS ON DISASTER ASSISTANCE.
``Not later than 45 days after the end of a fiscal year,
the Administrator shall submit to the Committee on Small
Business and Entrepreneurship of the Senate and the Committee
on Small Business of the House of Representatives a report on
the disaster assistance operations of the Administration for
that fiscal year. The report shall--
``(1) specify the number of Administration personnel
involved in such operations;
``(2) describe any material changes to those operations,
such as changes to technologies used or to personnel
responsibilities;
``(3) describe and assess the effectiveness of the
Administration in responding to disasters during that fiscal
year, including a description of the number and amounts of
loans made for damage and for economic injury; and
``(4) describe the plans of the Administration for
preparing to respond to disasters during the next fiscal
year.''.
TITLE XIII--COMMODITY FUTURES
SEC. 13001. SHORT TITLE.
This title may be cited as the ``CFTC Reauthorization Act
of 2008''.
Subtitle A--General Provisions
SEC. 13101. COMMISSION AUTHORITY OVER AGREEMENTS, CONTRACTS
OR TRANSACTIONS IN FOREIGN CURRENCY.
(a) In General.--Section 2(c)(2) of the Commodity Exchange
Act (7 U.S.C. 2(c)(2)) is amended by striking subparagraphs
(B) and (C) and inserting the following:
``(B) Agreements, contracts, and transactions in retail
foreign currency.--
``(i) This Act applies to, and the Commission shall have
jurisdiction over, an agreement, contract, or transaction in
foreign currency that--
``(I) is a contract of sale of a commodity for future
delivery (or an option on such a contract) or an option
(other than an option executed or traded on a national
securities exchange registered pursuant to section 6(a) of
the Securities Exchange Act of 1934 (15 U.S.C. 78f(a))); and
``(II) is offered to, or entered into with, a person that
is not an eligible contract participant, unless the
counterparty, or the person offering to be the counterparty,
of the person is--
``(aa) a financial institution;
``(bb)(AA) a broker or dealer registered under section
15(b) (except paragraph (11) thereof) or 15C of the
Securities Exchange Act of 1934 (15 U.S.C. 78o(b), 78o-5); or
``(BB) an associated person of a broker or dealer
registered under section 15(b) (except paragraph (11)
thereof) or 15C of the Securities Exchange Act of 1934 (15
U.S.C. 78o(b), 78o-5) concerning the financial or securities
activities of which the broker or dealer makes and keeps
records under section 15C(b) or 17(h) of the Securities
Exchange Act of 1934 (15 U.S.C. 78o-5(b), 78q(h));
``(cc)(AA) a futures commission merchant that is primarily
or substantially engaged in the business activities described
in section 1a(20) of this Act, is registered under this Act,
is not a person described in item (bb) of this subclause, and
maintains adjusted net capital equal to or in excess of the
dollar amount that applies for purposes of clause (ii) of
this subparagraph; or
``(BB) an affiliated person of a futures commission
merchant that is primarily or substantially engaged in the
business activities described in section 1a(20) of this Act,
is registered under this Act, and is not a person described
in item (bb) of this subclause, if the affiliated person
maintains adjusted net capital equal to or in excess of the
dollar amount that applies for purposes of clause (ii) of
this subparagraph and is not a person described in such item
(bb), and the futures commission merchant makes and keeps
records under section 4f(c)(2)(B) of this Act concerning the
futures and other financial activities of the affiliated
person;
``(dd) an insurance company described in section
1a(12)(A)(ii) of this Act, or a regulated subsidiary or
affiliate of such an insurance company;
``(ee) a financial holding company (as defined in section 2
of the Bank Holding Company Act of 1956);
``(ff) an investment bank holding company (as defined in
section 17(i) of the Securities Exchange Act of 1934 (15
U.S.C. 78q(i))); or
``(gg) a retail foreign exchange dealer that maintains
adjusted net capital equal to or in excess of the dollar
amount that applies for purposes of clause (ii) of this
subparagraph and is registered in such capacity with the
Commission, subject to such terms and conditions as the
Commission shall prescribe, and is a member of a futures
association registered under section 17.
``(ii) The dollar amount that applies for purposes of this
clause is--
``(I) $10,000,000, beginning 120 days after the date of the
enactment of this clause;
``(II) $15,000,000, beginning 240 days after such date of
enactment; and
``(III) $20,000,000, beginning 360 days after such date of
enactment.
``(iii) Notwithstanding items (cc) and (gg) of clause
(i)(II) of this subparagraph, agreements, contracts, or
transactions described in clause (i) of this subparagraph
shall be subject to subsection (a)(1)(B) of this section and
sections 4(b), 4b, 4c(b), 4o, 6(c) and 6(d) (except to the
extent that sections 6(c) and 6(d) prohibit manipulation of
the market price of any commodity in interstate commerce, or
for future delivery on or subject to the rules of any
market), 6c, 6d, 8(a), 13(a), and 13(b) if the agreements,
contracts, or transactions are offered, or entered into, by a
person that is registered as a futures commission merchant or
retail foreign exchange dealer, or an affiliated person of a
futures commission merchant registered under this Act that is
not also a person described in any of item (aa), (bb), (dd),
(ee), or (ff) of clause (i)(II) of this subparagraph.
``(iv)(I) Notwithstanding items (cc) and (gg) of clause
(i)(II), a person, unless registered in such capacity as the
Commission by rule, regulation, or order shall determine and
a member of a futures association registered under section
17, shall not--
``(aa) solicit or accept orders from any person that is not
an eligible contract participant in connection with
agreements, contracts, or transactions described in clause
(i) entered into with or to be entered into with a person who
is not described in item (aa), (bb), (dd), (ee), or (ff) of
clause (i)(II);
``(bb) exercise discretionary trading authority or obtain
written authorization to exercise discretionary trading
authority over any account for or on behalf of any person
that is not an eligible contract participant in connection
with agreements, contracts, or transactions described in
clause (i) entered into with or to be entered into with a
person who is not described in item (aa), (bb), (dd), (ee),
or (ff) of clause (i)(II); or
``(cc) operate or solicit funds, securities, or property
for any pooled investment vehicle that is not an eligible
contract participant in connection with agreements,
contracts, or transactions described in clause (i) entered
into with or to be entered into with a person who is not
described in item (aa), (bb), (dd), (ee), or (ff) of clause
(i)(II).
``(II) Subclause (I) of this clause shall not apply to--
``(aa) any person described in any of item (aa), (bb),
(dd), (ee), or (ff) of clause (i)(II);
``(bb) any such person's associated persons; or
``(cc) any person who would be exempt from registration if
engaging in the same activities in connection with
transactions conducted on or subject to the rules of a
contract market or a derivatives transaction execution
facility.
``(III) Notwithstanding items (cc) and (gg) of clause
(i)(II), the Commission may make, promulgate, and enforce
such rules and regulations as, in the judgment of the
Commission, are reasonably necessary to effectuate any of the
provisions of, or to accomplish any of the purposes of, this
Act in connection with the activities of persons subject to
subclause (I).
``(IV) Subclause (III) of this clause shall not apply to--
``(aa) any person described in any of item (aa) through
(ff) of clause (i)(II);
``(bb) any such person's associated persons; or
``(cc) any person who would be exempt from registration if
engaging in the same activities in connection with
transactions conducted on or subject to the rules of a
contract market or a derivatives transaction execution
facility.
``(v) Notwithstanding items (cc) and (gg) of clause
(i)(II), the Commission may make, promulgate, and enforce
such rules and regulations as, in the judgment of the
Commission, are reasonably necessary to effectuate any of the
provisions of, or to accomplish any of the purposes of, this
Act in connection with agreements, contracts, or transactions
described in clause (i) which are offered, or entered into,
by a person described in item (cc) or (gg) of clause (i)(II).
``(C)(i)(I) This subparagraph shall apply to any agreement,
contract, or transaction in foreign currency that is--
``(aa) offered to, or entered into with, a person that is
not an eligible contract participant (except that this
subparagraph shall not apply if the counterparty, or the
person offering to be the counterparty, of the person that is
not an eligible contract participant is a person described in
any of item (aa), (bb), (dd), (ee), or (ff) of subparagraph
(B)(i)(II)); and
``(bb) offered, or entered into, on a leveraged or margined
basis, or financed by the offeror, the counterparty, or a
person acting in concert with the offeror or counterparty on
a similar basis.
``(II) Subclause (I) of this clause shall not apply to--
``(aa) a security that is not a security futures product;
or
``(bb) a contract of sale that--
``(AA) results in actual delivery within 2 days; or
``(BB) creates an enforceable obligation to deliver between
a seller and buyer that have the ability to deliver and
accept delivery, respectively, in connection with their line
of business.
``(ii)(I) Agreements, contracts, or transactions described
in clause (i) of this subparagraph shall be subject to
subsection (a)(1)(B) of this section and sections 4(b), 4b,
4c(b), 4o, 6(c) and 6(d) (except to the extent
[[Page H4617]]
that sections 6(c) and 6(d) prohibit manipulation of the
market price of any commodity in interstate commerce, or for
future delivery on or subject to the rules of any market),
6c, 6d, 8(a), 13(a), and 13(b).
``(II) Subclause (I) of this clause shall not apply to--
``(aa) any person described in any of item (aa), (bb),
(dd), (ee), or (ff) of subparagraph (B)(i)(II); or
``(bb) any such person's associated persons.
``(III) The Commission may make, promulgate, and enforce
such rules and regulations as, in the judgment of the
Commission, are reasonably necessary to effectuate any of the
provisions of or to accomplish any of the purposes of this
Act in connection with agreements, contracts, or transactions
described in clause (i) of this subparagraph if the
agreements, contracts, or transactions are offered, or
entered into, by a person that is not described in item (aa)
through (ff) of subparagraph (B)(i)(II).
``(iii)(I) A person, unless registered in such capacity as
the Commission by rule, regulation, or order shall determine
and a member of a futures association registered under
section 17, shall not--
``(aa) solicit or accept orders from any person that is not
an eligible contract participant in connection with
agreements, contracts, or transactions described in clause
(i) of this subparagraph entered into with or to be entered
into with a person who is not described in item (aa), (bb),
(dd), (ee), or (ff) of subparagraph (B)(i)(II);
``(bb) exercise discretionary trading authority or obtain
written authorization to exercise written trading authority
over any account for or on behalf of any person that is not
an eligible contract participant in connection with
agreements, contracts, or transactions described in clause
(i) of this subparagraph entered into with or to be entered
into with a person who is not described in item (aa), (bb),
(dd), (ee), or (ff) of subparagraph (B)(i)(II); or
``(cc) operate or solicit funds, securities, or property
for any pooled investment vehicle that is not an eligible
contract participant in connection with agreements,
contracts, or transactions described in clause (i) of this
subparagraph entered into with or to be entered into with a
person who is not described in item (aa), (bb), (dd), (ee),
or (ff) of subparagraph (B)(i)(II).
``(II) Subclause (I) of this clause shall not apply to--
``(aa) any person described in item (aa), (bb), (dd), (ee),
or (ff) of subparagraph (B)(i)(II);
``(bb) any such person's associated persons; or
``(cc) any person who would be exempt from registration if
engaging in the same activities in connection with
transactions conducted on or subject to the rules of a
contract market or a derivatives transaction execution
facility.
``(III) The Commission may make, promulgate, and enforce
such rules and regulations as, in the judgment of the
Commission, are reasonably necessary to effectuate any of the
provisions of, or to accomplish any of the purposes of, this
Act in connection with the activities of persons subject to
subclause (I).
``(IV) Subclause (III) of this clause shall not apply to--
``(aa) any person described in item (aa) through (ff) of
subparagraph (B)(i)(II);
``(bb) any such person's associated persons; or
``(cc) any person who would be exempt from registration if
engaging in the same activities in connection with
transactions conducted on or subject to the rules of a
contract market or a derivatives transaction execution
facility.
``(iv) Sections 4(b) and 4b shall apply to any agreement,
contract, or transaction described in clause (i) of this
subparagraph as if the agreement, contract, or transaction
were a contract of sale of a commodity for future delivery.
``(v) This subparagraph shall not be construed to limit any
jurisdiction that the Commission may otherwise have under any
other provision of this Act over an agreement, contract, or
transaction that is a contract of sale of a commodity for
future delivery.
``(vi) This subparagraph shall not be construed to limit
any jurisdiction that the Commission or the Securities and
Exchange Commission may otherwise have under any other
provision of this Act with respect to security futures
products and persons effecting transactions in security
futures products.''.
(b) Effective Date.--The following provisions of the
Commodity Exchange Act, as amended by subsection (a) of this
section, shall be effective 120 days after the date of the
enactment of this Act or at such other time as the Commodity
Futures Trading Commission shall determine:
(1) Subparagraphs (B)(i)(II)(gg), (B)(iv), and (C)(iii) of
section 2(c)(2).
(2) The provisions of section 2(c)(2)(B)(i)(II)(cc) that
set forth adjusted net capital requirements, and the
provisions of such section that require a futures commission
merchant to be primarily or substantially engaged in certain
business activities.
SEC. 13102. ANTI-FRAUD AUTHORITY OVER PRINCIPAL-TO-PRINCIPAL
TRANSACTIONS.
Section 4b of the Commodity Exchange Act (7 U.S.C. Section
6b) is amended--
(1) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(2) by striking all through the end of subsection (a) and
inserting the following:
``SEC. 4B. CONTRACTS DESIGNED TO DEFRAUD OR MISLEAD.
``(a) Unlawful Actions.--It shall be unlawful--
``(1) for any person, in or in connection with any order to
make, or the making of, any contract of sale of any commodity
in interstate commerce or for future delivery that is made,
or to be made, on or subject to the rules of a designated
contract market, for or on behalf of any other person; or
``(2) for any person, in or in connection with any order to
make, or the making of, any contract of sale of any commodity
for future delivery, or other agreement, contract, or
transaction subject to paragraphs (1) and (2) of section
5a(g), that is made, or to be made, for or on behalf of, or
with, any other person, other than on or subject to the rules
of a designated contract market--
``(A) to cheat or defraud or attempt to cheat or defraud
the other person;
``(B) willfully to make or cause to be made to the other
person any false report or statement or willfully to enter or
cause to be entered for the other person any false record;
``(C) willfully to deceive or attempt to deceive the other
person by any means whatsoever in regard to any order or
contract or the disposition or execution of any order or
contract, or in regard to any act of agency performed, with
respect to any order or contract for or, in the case of
paragraph (2), with the other person; or
``(D)(i) to bucket an order if the order is either
represented by the person as an order to be executed, or is
required to be executed, on or subject to the rules of a
designated contract market; or
``(ii) to fill an order by offset against the order or
orders of any other person, or willfully and knowingly and
without the prior consent of the other person to become the
buyer in respect to any selling order of the other person, or
become the seller in respect to any buying order of the other
person, if the order is either represented by the person as
an order to be executed, or is required to be executed, on or
subject to the rules of a designated contract market unless
the order is executed in accordance with the rules of the
designated contract market.
``(b) Clarification.--Subsection (a)(2) of this section
shall not obligate any person, in or in connection with a
transaction in a contract of sale of a commodity for future
delivery, or other agreement, contract or transaction subject
to paragraphs (1) and (2) of section 5a(g), with another
person, to disclose to the other person nonpublic information
that may be material to the market price, rate, or level of
the commodity or transaction, except as necessary to make any
statement made to the other person in or in connection with
the transaction not misleading in any material respect.''.
SEC. 13103. CRIMINAL AND CIVIL PENALTIES.
(a) Enforcement Powers of the Commission.--Section 6(c) of
the Commodity Exchange Act (7 U.S.C. 9, 15) is amended in
clause (3) of the 10th sentence--
(1) by inserting ``(A)'' after ``assess such person''; and
(2) by inserting after ``each such violation'' the
following: ``, or (B) in any case of manipulation or
attempted manipulation in violation of this subsection,
subsection (d) of this section, or section 9(a)(2), a civil
penalty of not more than the greater of $1,000,000 or triple
the monetary gain to the person for each such violation,''.
(b) Nonenforcement of Rules of Government or Other
Violations.--Section 6b of such Act (7 U.S.C. 13a) is
amended--
(1) in the first sentence, by inserting before the period
at the end the following: ``, or, in any case of manipulation
or attempted manipulation in violation of section 6(c), 6(d),
or 9(a)(2), a civil penalty of not more than $1,000,000 for
each such violation''; and
(2) in the second sentence, by inserting before the period
at the end the following: ``, except that if the failure or
refusal to obey or comply with the order involved any offense
under section 9(a)(2), the registered entity, director,
officer, agent, or employee shall be guilty of a felony and,
on conviction, shall be subject to penalties under section
9(a)(2)''.
(c) Action to Enjoin or Restrain Violations.--Section 6c(d)
of such Act (7 U.S.C. 13a-1(d)) is amended by striking all
that precedes paragraph (2) and inserting the following:
``(d) Civil Penalties.--
``(1) In general.--In any action brought under this
section, the Commission may seek and the court shall have
jurisdiction to impose, on a proper showing, on any person
found in the action to have committed any violation--
``(A) a civil penalty in the amount of not more than the
greater of $100,000 or triple the monetary gain to the person
for each violation; or
``(B) in any case of manipulation or attempted manipulation
in violation of section 6(c), 6(d), or 9(a)(2), a civil
penalty in the amount of not more than the greater of
$1,000,000 or triple the monetary gain to the person for each
violation.''.
(d) Violations Generally.--Section 9(a) of such Act (7
U.S.C. 13(a)) is amended in the matter preceding paragraph
(1)--
(1) by striking ``(or $500,000 in the case of a person who
is an individual)''; and
(2) by striking ``five years'' and inserting ``10 years''.
[[Page H4618]]
SEC. 13104. AUTHORIZATION OF APPROPRIATIONS.
Section 12(d) of the Commodity Exchange Act (7 U.S.C.
16(d)) is amended to read as follows:
``(d) There are authorized to be appropriated such sums as
are necessary to carry out this Act for each of the fiscal
years 2008 through 2013.''.
SEC. 13105. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Section 4a(e) of the Commodity Exchange Act (7 U.S.C.
6a(e)) is amended--
(1) by inserting ``or certified by a registered entity
pursuant to section 5c(c)(1)'' after ``approved by the
Commission'' ; and
(2) by striking ``section 9(c)'' and inserting ``section
9(a)(5)''.
(b) Section 4f(c)(4)(B)(i) of such Act (7 U.S.C.
6f(c)(4)(B)(i)) is amended by striking ``compiled'' and
inserting ``complied''.
(c) Section 4k of such Act (7 U.S.C. 6k) is amended by
redesignating the second paragraph (5) as paragraph (6).
(d) The Commodity Exchange Act is amended--
(1) by redesignating the first section 4p (7 U.S.C. 6o-1),
as added by section 121 of the Commodity Futures
Modernization Act of 2000, as section 4q; and
(2) by moving such section to after the second section 4p,
as added by section 206 of Public Law 93-446.
(e) Subsections (a)(1) and (d)(1) of section 5c of such Act
(7 U.S.C. 7a-2(a)(1), (d)(1)) are each amended by striking
``5b(d)(2)'' and inserting ``5b(c)(2)''.
(f) Sections 5c(f) and 17(r) of such Act (7 U.S.C. 7a-2(f),
21(r)) are each amended by striking ``4d(3)'' and inserting
``4d(c)''.
(g) Section 8(a)(1) of such Act (7 U.S.C. 12(a)(1)) is
amended in the matter following subparagraph (B)--
(1) by striking ``commenced'' in the 2nd place it appears;
and
(2) by inserting ``commenced'' after ``in a judicial
proceeding''.
(h) Section 9 of such Act (7 U.S.C. 13) is amended--
(1) in subsection (f)(1), by striking the period and
inserting ``; or''; and
(2) by redesignating subsection (f) as subsection (e).
(i) Section 22(a)(2) of such Act (7 U.S.C. 25(a)(2)) is
amended by striking ``5b(b)(1)(E)'' and inserting
``5b(c)(2)(H)''.
(j) Section 1a(33)(A) of such Act (7 U.S.C. 1a(33)(A)) is
amended by striking ``transactions'' and all that follows and
inserting ``transactions--
``(i) by accepting bids or offers made by other
participants that are open to multiple partipants in the
facility or system; or
``(ii) through the interaction of multiple bids or multiple
offers within a system with a pre-determined non-
discretionary automated trade matching and execution
algorithm.''.
(k) Section 14(d) of such Act (7 U.S.C. 18(d)) is amended--
(1) by inserting ``(1)'' before ``If''; and
(2) by adding after and below the end the following:
``(2) A reparation award shall be directly enforceable in
district court as if it were a judgment pursuant to section
1963 of title 28, United States Code. This paragraph shall
operate retroactively from the effective date of its
enactment, and shall apply to all reparation awards for which
a proceeding described in paragraph (1) is commenced within 3
years of the date of the Commission's order.''.
SEC. 13106. PORTFOLIO MARGINING AND SECURITY INDEX ISSUES.
(a) The Secretary of the Treasury, the Chairman of the
Board of Governors of the Federal Reserve System, the
Chairman of the Securities and Exchange Commission, and the
Chairman of the Commodity Futures Trading Commission shall
work to ensure that the Securities and Exchange Commission
(SEC), the Commodity Futures Trading Commission (CFTC), or
both, as appropriate, have taken the actions required under
subsection (b).
(b) The SEC, the CFTC, or both, as appropriate, shall take
action under their existing authorities to permit--
(1) by September 30, 2009, risk-based portfolio margining
for security options and security futures products (as
defined in section 1a(32) of the Commodity Exchange Act); and
(2) by June 30, 2009, the trading of futures on certain
security indexes by resolving issues related to foreign
security indexes.
Subtitle B--Significant Price Discovery Contracts on Exempt Commercial
Markets
SEC. 13201. SIGNIFICANT PRICE DISCOVERY CONTRACTS.
(a) Definitions.--Section la of the Commodity Exchange Act
(7 U.S.C. la) is amended--
(1) by redesignating paragraph (33) as paragraph (34); and
(2) by inserting after paragraph (32) the following:
``(33) Significant price discovery contract.--The term
`significant price discovery contract' means an agreement,
contract, or transaction subject to section 2(h)(7).''.
(b) Standards Applicable to Significant Price Discovery
Contracts.--Section 2(h) of such Act (7 U.S.C. 2(h)) is
amended by adding at the end the following:
``(7) Significant price discovery contracts.--
``(A) In general.--An agreement, contract, or transaction
conducted in reliance on the exemption in paragraph (3) shall
be subject to the provisions of subparagraphs (B) through
(D), under such rules and regulations as the Commission shall
promulgate, provided that the Commission determines, in its
discretion, that the agreement, contract, or transaction
performs a significant price discovery function as described
in subparagraph (B).
``(B) Significant price discovery determination.--In making
a determination whether an agreement, contract, or
transaction performs a significant price discovery function,
the Commission shall consider, as appropriate:
``(i) Price linkage.--The extent to which the agreement,
contract, or transaction uses or otherwise relies on a daily
or final settlement price, or other major price parameter, of
a contract or contracts listed for trading on or subject to
the rules of a designated contract market or a derivatives
transaction execution facility, or a significant price
discovery contract traded on an electronic trading facility,
to value a position, transfer or convert a position, cash or
financially settle a position, or close out a position.
``(ii) Arbitrage.--The extent to which the price for the
agreement, contract, or transaction is sufficiently related
to the price of a contract or contracts listed for trading on
or subject to the rules of a designated contract market or
derivatives transaction execution facility, or a significant
price discovery contract or contracts trading on or subject
to the rules of an electronic trading facility, so as to
permit market participants to effectively arbitrage between
the markets by simultaneously maintaining positions or
executing trades in the contracts on a frequent and recurring
basis.
``(iii) Material price reference.--The extent to which, on
a frequent and recurring basis, bids, offers, or transactions
in a commodity are directly based on, or are determined by
referencing, the prices generated by agreements, contracts,
or transactions being traded or executed on the electronic
trading facility.
``(iv) Material liquidity.--The extent to which the volume
of agreements, contracts, or transactions in the commodity
being traded on the electronic trading facility is sufficient
to have a material effect on other agreements, contracts, or
transactions listed for trading on or subject to the rules of
a designated contract market, a derivatives transaction
execution facility, or an electronic trading facility
operating in reliance on the exemption in paragraph (3).
``(v) Other material factors.--Such other material factors
as the Commission specifies by rule as relevant to determine
whether an agreement, contract, or transaction serves a
significant price discovery function.
``(C) Core principles applicable to significant price
discovery contracts.--
``(i) In general.--An electronic trading facility on which
significant price discovery contracts are traded or executed
shall, with respect to those contracts, comply with the core
principles specified in this subparagraph.
``(ii) Core principles.--The electronic trading facility
shall have reasonable discretion (including discretion to
account for differences between cleared and uncleared
significant price discovery contracts) in establishing the
manner in which it complies with the following core
principles:
``(I) Contracts not readily susceptible to manipulation.--
The electronic trading facility shall list only significant
price discovery contracts that are not readily susceptible to
manipulation.
``(II) Monitoring of trading.--The electronic trading
facility shall monitor trading in significant price discovery
contracts to prevent market manipulation, price distortion,
and disruptions of the delivery or cash-settlement process
through market surveillance, compliance, and disciplinary
practices and procedures, including methods for conducting
real-time monitoring of trading and comprehensive and
accurate trade reconstructions.
``(III) Ability to obtain information.--The electronic
trading facility shall--
``(aa) establish and enforce rules that will allow the
electronic trading facility to obtain any necessary
information to perform any of the functions described in this
subparagraph;
``(bb) provide the information to the Commission upon
request; and
``(cc) have the capacity to carry out such international
information-sharing agreements as the Commission may require.
``(IV) Position limitations or accountability.--The
electronic trading facility shall adopt, where necessary and
appropriate, position limitations or position accountability
for speculators in significant price discovery contracts,
taking into account positions in other agreements, contracts,
and transactions that are treated by a derivatives clearing
organization, whether registered or not registered, as
fungible with such significant price discovery contracts to
reduce the potential threat of market manipulation or
congestion, especially during trading in the delivery month.
``(V) Emergency authority.--The electronic trading facility
shall adopt rules to provide for the exercise of emergency
authority, in consultation or cooperation with the
Commission, where necessary and appropriate, including the
authority--
``(aa) to liquidate open positions in a significant price
discovery contract; and
``(bb) to suspend or curtail trading in a significant price
discovery contract.
``(VI) Daily publication of trading information.--The
electronic trading facility
[[Page H4619]]
shall make public daily information on price, trading volume,
and other trading data to the extent appropriate for
significant price discovery contracts.
``(VII) Compliance with rules.--The electronic trading
facility shall monitor and enforce compliance with any rules
of the electronic trading facility applicable to significant
price discovery contracts, including the terms and conditions
of the contracts and any limitations on access to the
electronic trading facility with respect to the contracts.
``(VIII) Conflict of interest.--The electronic trading
facility, with respect to significant price discovery
contracts, shall--
``(aa) establish and enforce rules to minimize conflicts of
interest in its decision-making process; and
``(bb) establish a process for resolving the conflicts of
interest.
``(IX) Antitrust considerations.--Unless necessary or
appropriate to achieve the purposes of this Act, the
electronic trading facility, with respect to significant
price discovery contracts, shall endeavor to avoid--
``(aa) adopting any rules or taking any actions that result
in any unreasonable restraints of trade; or
``(bb) imposing any material anticompetitive burden on
trading on the electronic trading facility.
``(D) Implementation.--
``(i) Clearing.--The Commission shall take into
consideration differences between cleared and uncleared
significant price discovery contracts when reviewing the
implementation of the core principles by an electronic
trading facility.
``(ii) Review.--As part of the Commission's continual
monitoring and surveillance activities, the Commission shall,
not less frequently than annually, evaluate, as appropriate,
all the agreements, contracts, or transactions conducted on
an electronic trading facility in reliance on the exemption
provided in paragraph (3) to determine whether they serve a
significant price discovery function as described in
subparagraph (B) of this paragraph.''.
SEC. 13202. LARGE TRADER REPORTING.
(a) Reporting and Recordkeeping.--Section 4g(a) of the
Commodity Exchange Act (7 U.S.C. 6g(a)) is amended by
inserting ``, and in any significant price discovery contract
traded or executed on an electronic trading facility or any
agreement, contract, or transaction that is treated by a
derivatives clearing organization, whether registered or not
registered, as fungible with a significant price discovery
contract'' after ``elsewhere''.
(b) Reports of Positions Equal to or in Excess of Trading
Limits.--Section 4i of such Act (7 U.S.C. 6i) is amended--
(1) by inserting ``, or any significant price discovery
contract traded or executed on an electronic trading facility
or any agreement, contract, or transaction that is treated by
a derivatives clearing organization, whether registered or
not registered, as fungible with a significant price
discovery contract'' after ``subject to the rules of any
contract market or derivatives transaction execution
facility''; and
(2) in the matter following paragraph (2), by inserting
``or electronic trading facility'' after ``subject to the
rules of any other board of trade''.
SEC. 13203. CONFORMING AMENDMENTS.
(a) Section 1a(12)(A)(x) of the Commodity Exchange Act (7
U.S.C. 1a(12)(A)(x)) is amended by inserting ``(other than an
electronic trading facility with respect to a significant
price discovery contract)'' after ``registered entity''.
(b) Section 1a(29) of such Act (7 U.S.C. 1a(29)) is
amended--
(1) in subparagraph (C), by striking ``and'' at the end;
(2) in subparagraph (D), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following:
``(E) with respect to a contract that the Commission
determines is a significant price discovery contract, any
electronic trading facility on which the contract is executed
or traded.''.
(c) Section 2(a)(1)(A) of such Act (7 U.S.C. 2(a)(1)(A)) is
amended by inserting after ``future delivery'' the following:
``(including significant price discovery contracts)''.
(d) Section 2(h)(3) of such Act (7 U.S.C. 2(h)(3)) is
amended by striking ``paragraph (4)'' and inserting
``paragraphs (4) and (7)''.
(e) Section 2(h)(4) of such Act (7 U.S.C. 2(h)(4)) is
amended--
(1) in subparagraph (B), by inserting ``and, for a
significant price discovery contract, requiring large trader
reporting,'' after ``proscribing fraud'';
(2) by striking ``and'' at the end of subparagraph (C); and
(3) by striking subparagraph (D) and inserting the
following:
``(D) such rules, regulations, and orders as the Commission
may issue to ensure timely compliance with any of the
provisions of this Act applicable to a significant price
discovery contract traded on or executed on any electronic
trading facility; and
``(E) such other provisions of this Act as are applicable
by their terms to significant price discovery contracts or to
registered entities or electronic trading facilities with
respect to significant price discovery contracts.''.
(f) Section 2(h)(5)(B)(iii)(I) of such Act (7 U.S.C.
2(h)(5)(B)(iii)(I)) is amended by inserting ``or to make the
determination described in subparagraph (B) of paragraph
(7)'' after ``paragraph (4)''.
(g) Section 4a of such Act (7 U.S.C. 6a) is amended--
(1) in subsection (a)--
(A) in the first sentence, by inserting ``, or on
electronic trading facilities with respect to a significant
price discovery contract'' after ``derivatives transaction
execution facilities''; and
(B) in the second sentence, by inserting ``, or on an
electronic trading facility with respect to a significant
price discovery contract,'' after ``derivatives transaction
execution facility''; and
(2) in subsection (b)--
(A) in paragraph (1), by inserting ``or electronic trading
facility with respect to a significant price discovery
contract'' after ``facility or facilities''; and
(B) in paragraph (2), by inserting ``or electronic trading
facility with respect to a significant price discovery
contract'' after ``derivatives transaction execution
facility''; and
(3) in subsection (e)--
(A) in the first sentence--
(i) by inserting ``or by any electronic trading facility''
after ``registered by the Commission'';
(ii) by inserting ``or on an electronic trading facility''
after ``derivatives transaction execution facility'' the
second place it appears; and
(iii) by inserting ``or electronic trading facility''
before ``or such board of trade'' each place it appears; and
(B) in the second sentence, by inserting ``or electronic
trading facility with respect to a significant price
discovery contract'' after ``registered by the Commission''.
(h) Section 5a(d) of such Act (7 U.S.C. 7a(d)(1)) is
amended--
(1) by redesignating paragraphs (4) through (9) as
paragraphs (5) through (10); and
(2) by inserting after paragraph (3) the following:
``(4) Position limitations or accountability.--To reduce
the potential threat of market manipulation or congestion,
especially during trading in the delivery month, the
derivatives transaction execution facility shall adopt
position limits or position accountability for speculators,
where necessary and appropriate for a contract, agreement or
transaction with an underlying commodity that has a
physically deliverable supply.''.
(i) Section 5c(a) of such Act (7 U.S.C. 7a-2(a)) is amended
in paragraph (1) by inserting ``, and section 2(h)(7) with
respect to significant price discovery contracts,'' after ``,
and 5b(d)(2)''.
(j) Section 5c(b) of such Act (7 U.S.C. 7a-2(b)) is
amended--
(1) by striking paragraph (1) and inserting the following:
``(1) In general.--A contract market, derivatives
transaction execution facility, or electronic trading
facility with respect to a significant price discovery
contract may comply with any applicable core principle
through delegation of any relevant function to a registered
futures association or a registered entity that is not an
electronic trading facility.'';
(2) in paragraph (2), by striking ``contract market or
derivatives transaction execution facility'' and inserting
``contract market, derivatives transaction execution
facility, or electronic trading facility''; and
(3) in paragraph (3), by striking ``contract market or
derivatives transaction execution facility'' each place it
appears and inserting ``contract market, derivatives
transaction execution facility, or electronic trading
facility''.
(k) Section 5c(d)(1) of such Act (7 U.S.C. 7a-2(d)(1)) is
amended by inserting ``or 2(h)(7)(C) with respect to a
significant price discovery contract traded or executed on an
electronic trading facility,'' after ``5b(d)(2)''.
(l) Section 5e of such Act (7 U.S.C. 7b) is amended by
inserting ``, or revocation of the right of an electronic
trading facility to rely on the exemption set forth in
section 2(h)(3) with respect to a significant price discovery
contract,'' after ``revocation of designation as a registered
entity''.
(m) Section 6(b) of the Commodity Exchange Act (7 U.S.C.
8(b)) is amended by striking the first sentence and all that
follows through ``hearing on the record: Provided,'' and
inserting the following:
``The Commission is authorized to suspend for a period not
to exceed 6 months or to revoke the designation or
registration of any contract market or derivatives
transaction execution facility, or to revoke the right of an
electronic trading facility to rely on the exemption set
forth in section 2(h)(3) with respect to a significant price
discovery contract, on a showing that the contract market or
derivatives transaction execution facility is not enforcing
or has not enforced its rules of government, made a condition
of its designation or registration as set forth in sections 5
through 5b or section 5f, or that the contract market or
derivatives transaction execution facility or electronic
trading facility, or any director, officer, agent, or
employee thereof, otherwise is violating or has violated any
of the provisions of this Act or any of the rules,
regulations, or orders of the Commission thereunder. Such
suspension or revocation shall only be made after a notice to
the officers of the contract market or derivatives
transaction execution facility or electronic trading facility
affected and upon a hearing on the record: Provided,''.
(n) Section 22(b)(1) of such Act (7 U.S.C. 25(b)(1)) is
amended by inserting ``section 2(h)(7) or'' before ``sections
5''.
[[Page H4620]]
SEC. 13204. EFFECTIVE DATE.
(a) In General.--Except as provided in this section, this
subtitle shall become effective on the date of enactment of
this Act.
(b) Significant Price Discovery Standards Rulemaking.--
(1) The Commodity Futures Trading Commission shall--
(A) not later than 180 days after the date of the enactment
of this Act, issue a proposed rule regarding the
implementation of section 2(h)(7) of the Commodity Exchange
Act; and
(B) not later than 270 days after the date of enactment of
this Act, issue a final rule regarding the implementation.
(2) In its rulemaking pursuant to paragraph (1) of this
subsection, the Commission shall include the standards,
terms, and conditions under which an electronic trading
facility will have the responsibility to notify the
Commission that an agreement, contract, or transaction
conducted in reliance on the exemption provided in section
2(h)(3) of the Commodity Exchange Act may perform a price
discovery function.
(c) Significant Price Discovery Determinations.--With
respect to any electronic trading facility operating on the
effective date of the final rule issued pursuant to
subsection (b)(1), the Commission shall complete a review of
the agreements, contracts, and transactions of the facility
not later than 180 days after that effective date to
determine whether any such agreement, contract, or
transaction performs a significant price discovery function.
TITLE XIV--MISCELLANEOUS
Subtitle A--Socially Disadvantaged Producers and Limited Resource
Producers
SEC. 14001. IMPROVED PROGRAM DELIVERY BY DEPARTMENT OF
AGRICULTURE ON INDIAN RESERVATIONS.
Section 2501(g)(1) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 2279(g)(1)) is amended--
(1) in the first sentence--
(A) by striking ``Agricultural Stabilization and
Conservation Service, Soil Conservation Service, and Farmers
Home Administration offices'' and inserting ``Farm Service
Agency and Natural Resources Conservation Service''; and
(B) by inserting ``where there has been a need
demonstrated'' after ``include''; and
(2) by striking the second sentence.
SEC. 14002. FORECLOSURE.
(a) In General.--Section 331A of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1981a) is amended:
(1) by inserting ``(a)'' after ``Sec. 331A.''; and
(2) by adding at the end the following:
``(b) Moratorium.--
``(1) In general.--Subject to the other provisions of this
subsection, effective beginning on the date of the enactment
of this subsection, there shall be in effect a moratorium,
with respect to farmer program loans made under subtitle A,
B, or C, on all acceleration and foreclosure proceedings
instituted by the Department of Agriculture against any
farmer or rancher who--
``(A) has pending against the Department a claim of program
discrimination that is accepted by the Department as valid;
or
``(B) files a claim of program discrimination that is
accepted by the Department as valid.
``(2) Waiver of interest and offsets.--During the period of
the moratorium, the Secretary shall waive the accrual of
interest and offsets on all farmer program loans made under
subtitle A, B, or C for which loan acceleration or
foreclosure proceedings have been suspended under paragraph
(1).
``(3) Termination of moratorium.--The moratorium shall
terminate with respect to a claim of discrimination by a
farmer or rancher on the earlier of--
``(A) the date the Secretary resolves the claim; or
``(B) if the farmer or rancher appeals the decision of the
Secretary on the claim to a court of competent jurisdiction,
the date that the court renders a final decision on the
claim.
``(4) Failure to prevail.--If a farmer or rancher does not
prevail on a claim of discrimination described in paragraph
(1), the farmer or rancher shall be liable for any interest
and offsets that accrued during the period that loan
acceleration or foreclosure proceedings have been suspended
under paragraph (1).''.
(b) Foreclosure Report.--
(1) In general.--Not later than 1 year after the date of
the enactment of this Act, the Inspector General of the
Department of Agriculture (referred to in this subsection as
the ``Inspector General'') shall determine whether decisions
of the Department to implement foreclosure proceedings with
respect to farmer program loans made under subtitle A, B, or
C of the Consolidated Farm and Rural Development Act (7
U.S.C. 1922 et seq.) to socially disadvantaged farmers or
ranchers during the 5-year period preceding the date of the
enactment of this Act were consistent and in conformity with
the applicable laws (including regulations) governing loan
foreclosures.
(2) Report.--Not later than 1 year after the date of the
enactment of this Act, the Inspector General shall submit to
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate a report that describes the determination of the
Inspector General under paragraph (1).
SEC. 14003. RECEIPT FOR SERVICE OR DENIAL OF SERVICE FROM
CERTAIN DEPARTMENT OF AGRICULTURE AGENCIES.
Section 2501A of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 2279-1) is amended by adding at
the end the following new subsection:
``(e) Receipt for Service or Denial of Service.--In any
case in which a current or prospective producer or landowner,
in person or in writing, requests from the Farm Service
Agency, the Natural Resources Conservation Service, or an
agency of the Rural Development Mission Area any benefit or
service offered by the Department to agricultural producers
or landowners and, at the time of the request, also requests
a receipt, the Secretary shall issue, on the date of the
request, a receipt to the producer or landowner that
contains--
``(1) the date, place, and subject of the request; and
``(2) the action taken, not taken, or recommended to the
producer or landowner.''.
SEC. 14004. OUTREACH AND TECHNICAL ASSISTANCE FOR SOCIALLY
DISADVANTAGED FARMERS OR RANCHERS.
(a) Outreach and Technical Assistance Program.--
(1) Program requirements.--Paragraph (2) of section 2501(a)
of the Food, Agriculture, Conservation, and Trade Act of 1990
(7 U.S.C. 2279(a)) is amended to read as follows:
``(2) Requirements.--The outreach and technical assistance
program under paragraph (1) shall be used exclusively--
``(A) to enhance coordination of the outreach, technical
assistance, and education efforts authorized under
agriculture programs; and
``(B) to assist the Secretary in--
``(i) reaching current and prospective socially
disadvantaged farmers or ranchers in a linguistically
appropriate manner; and
``(ii) improving the participation of those farmers and
ranchers in Department programs, as reported under section
2501A.''.
(2) Grants and contracts under program.--Section 2501(a)(3)
of the Food, Agriculture, Conservation, and Trade Act of 1990
(7 U.S.C. 2279(a)(3)) is amended--
(A) in subparagraph (A), by striking ``entity to provide
information'' and inserting ``entity that has demonstrated an
ability to carry out the requirements described in paragraph
(2) to provide outreach''; and
(B) by adding at the end the following new subparagraph:
``(D) Report.--The Secretary shall submit to the Committee
on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate, and make publicly available, an annual report that
includes a list of the following:
``(i) The recipients of funds made available under the
program.
``(ii) The activities undertaken and services provided.
``(iii) The number of current and prospective socially
disadvantaged farmers or ranchers served and outcomes of such
service.
``(iv) The problems and barriers identified by entities in
trying to increase participation by current and prospective
socially disadvantaged farmers or ranchers.''.
(3) Funding and limitation on use of funds.--Section
2501(a)(4) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 2279(a)(4)) is amended--
(A) by striking subparagraph (A) and inserting the
following new subparagraph:
``(A) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall make available to carry out
this section--
``(i) $15,000,000 for fiscal year 2009; and
``(ii) $20,000,000 for each of fiscal years 2010 through
2012.''.
(B) by adding at the end the following new subparagraph:
``(C) Limitation on use of funds for administrative
expenses.--Not more than 5 percent of the amounts made
available under subparagraph (A) for a fiscal year may be
used for expenses related to administering the program under
this section.''.
(b) Eligible Entity Defined.--Section 2501(e)(5)(A)(ii) of
the Food, Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 2279(e)(5)(A)(ii)) is amended by striking ``work with
socially disadvantaged farmers or ranchers during the 2-year
period'' and inserting ``work with, and on behalf of,
socially disadvantaged farmers or ranchers during the 3-year
period''.
SEC. 14005. ACCURATE DOCUMENTATION IN THE CENSUS OF
AGRICULTURE AND CERTAIN STUDIES.
Section 2501 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 2279) is amended by adding at the
end the following:
``(h) Accurate Documentation.--The Secretary shall ensure,
to the maximum extent practicable, that the Census of
Agriculture and studies carried out by the Economic Research
Service accurately document the number, location, and
economic contributions of socially disadvantaged farmers or
ranchers in agricultural production.''.
SEC. 14006. TRANSPARENCY AND ACCOUNTABILITY FOR SOCIALLY
DISADVANTAGED FARMERS OR RANCHERS.
Section 2501A of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 2279-1) is amended by striking
subsection (c) and inserting the following new subsections:
``(c) Compilation of Program Participation Data.--
``(1) Annual requirement.--For each county and State in the
United States, the Secretary of Agriculture (referred to in
this section as the `Secretary') shall annually compile
program application and participation
[[Page H4621]]
rate data regarding socially disadvantaged farmers or
ranchers by computing for each program of the Department of
Agriculture that serves agricultural producers and
landowners--
``(A) raw numbers of applicants and participants by race,
ethnicity, and gender, subject to appropriate privacy
protections, as determined by the Secretary; and
``(B) the application and participation rate, by race,
ethnicity, and gender, as a percentage of the total
participation rate of all agricultural producers and
landowners.
``(2) Authority to collect data.--The heads of the agencies
of the Department of Agriculture shall collect and transmit
to the Secretary any data, including data on race, gender,
and ethnicity, that the Secretary determines to be necessary
to carry out paragraph (1).
``(3) Report.--Using the technologies and systems of the
National Agricultural Statistics Service, the Secretary shall
compile and present the data compiled under paragraph (1) for
each program described in that paragraph in a manner that
includes the raw numbers and participation rates for--
``(A) the entire United States;
``(B) each State; and
``(C) each county in each State.
``(4) Public availability of report.--The Secretary shall
maintain and make readily available to the public, via
website and otherwise in electronic and paper form, the
report described in paragraph (3).
``(d) Limitations on Use of Data.--
``(1) Privacy protections.--In carrying out this section,
the Secretary shall not disclose the names or individual data
of any program participant.
``(2) Authorized uses.--The data under this section shall
be used exclusively for the purposes described in subsection
(a).
``(3) Limitation.--Except as otherwise provided, the data
under this section shall not be used for the evaluation of
individual applications for assistance.''.
SEC. 14007. OVERSIGHT AND COMPLIANCE.
The Secretary, acting through the Assistant Secretary for
Civil Rights of the Department of Agriculture, shall use the
reports described in subsection (c) of section 2501A of the
Food, Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 2279-1), as amended by section 14006, in the conduct
of oversight and evaluation of civil rights compliance.
SEC. 14008. MINORITY FARMER ADVISORY COMMITTEE.
(a) Establishment.--Not later than 18 months after the date
of the enactment of this Act, the Secretary of Agriculture
shall establish an advisory committee, to be known as the
``Advisory Committee on Minority Farmers'' (in this section
referred to as the ``Committee'').
(b) Duties.--The Committee shall provide advice to the
Secretary on--
(1) the implementation of section 2501 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
2279);
(2) methods of maximizing the participation of minority
farmers and ranchers in Department of Agriculture programs;
and
(3) civil rights activities within the Department as such
activities relate to participants in such programs.
(c) Membership.--
(1) In general.--The Committee shall be composed of not
more than 15 members, who shall be appointed by the
Secretary, and shall include--
(A) not less than four socially disadvantaged farmers or
ranchers (as defined in section 2501(e)(2) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
2279(e)(2)));
(B) not less than two representatives of nonprofit
organizations with a history of working with minority farmers
and ranchers;
(C) not less than two civil rights professionals;
(D) not less than two representatives of institutions of
higher education with demonstrated experience working with
minority farmers and ranchers; and
(E) such other persons as the Secretary considers
appropriate.
(2) Ex-officio members.--The Secretary may appoint such
employees of the Department of Agriculture as the Secretary
considers appropriate to serve as ex-officio members of the
Committee.
SEC. 14009. NATIONAL APPEALS DIVISION.
Section 280 of the Department of Agriculture Reorganization
Act of 1994 (7 U.S.C. 7000) is amended--
(1) by striking ``On the return'' and inserting the
following:
``(a) In General.--On the return''; and
(2) by adding at the end the following:
``(b) Reports.--
``(1) In general.--Not later than 180 days after the date
of the enactment of this subsection, and every 180 days
thereafter, the head of each agency shall submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate, and publish on the website of the Department, a
report that includes--
``(A) a description of all cases returned to the agency
during the period covered by the report pursuant to a final
determination of the Division;
``(B) the status of implementation of each final
determination; and
``(C) if the final determination has not been implemented--
``(i) the reason that the final determination has not been
implemented; and
``(ii) the projected date of implementation of the final
determination.
``(2) Updates.--Each month, the head of each agency shall
publish on the website of the Department any updates to the
reports submitted under paragraph (1).''.
SEC. 14010. REPORT OF CIVIL RIGHTS COMPLAINTS, RESOLUTIONS,
AND ACTIONS.
Each year, the Secretary shall--
(1) prepare a report that describes, for each agency of the
Department of Agriculture--
(A) the number of civil rights complaints filed that relate
to the agency, including whether a complaint is a program
complaint or an employment complaint;
(B) the length of time the agency took to process each
civil rights complaint;
(C) the number of proceedings brought against the agency,
including the number of complaints described in paragraph (1)
that were resolved with a finding of discrimination; and
(D) the number and type of personnel actions taken by the
agency following resolution of civil rights complaints;
(2) submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a copy of the report; and
(3) make the report available to the public by posting the
report on the website of the Department.
SEC. 14011. SENSE OF CONGRESS RELATING TO CLAIMS BROUGHT BY
SOCIALLY DISADVANTAGED FARMERS OR RANCHERS.
It is the sense of Congress that all pending claims and
class actions brought against the Department of Agriculture
by socially disadvantaged farmers or ranchers (as defined in
section 355(e) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2003(e)), including Native American, Hispanic,
and female farmers or ranchers, based on racial, ethnic, or
gender discrimination in farm program participation should be
resolved in an expeditious and just manner.
SEC. 14012. DETERMINATION ON MERITS OF PIGFORD CLAIMS.
(a) Definitions.--In this section:
(1) Consent decree.--The term ``consent decree'' means the
consent decree in the case of Pigford v. Glickman, approved
by the United States District Court for the District of
Columbia on April 14, 1999.
(2) Department.--The term ``Department'' means the
Department of Agriculture.
(3) Pigford claim.--The term ``Pigford claim'' means a
discrimination complaint, as defined by section 1(h) of the
consent decree and documented under section 5(b) of the
consent decree.
(4) Pigford claimant.--The term ``Pigford claimant'' means
an individual who previously submitted a late-filing request
under section 5(g) of the consent decree.
(b) Determination on Merits.--Any Pigford claimant who has
not previously obtained a determination on the merits of a
Pigford claim may, in a civil action brought in the United
States District Court for the District of Columbia, obtain
that determination.
(c) Limitation.--
(1) In general.--Subject to paragraph (2), all payments or
debt relief (including any limitation on foreclosure under
subsection (h)) shall be made exclusively from funds made
available under subsection (i).
(2) Maximum amount.--The total amount of payments and debt
relief pursuant to actions commenced under subsection (b)
shall not exceed $100,000,000.
(d) Intent of Congress as to Remedial Nature of Section.--
It is the intent of Congress that this section be liberally
construed so as to effectuate its remedial purpose of giving
a full determination on the merits for each Pigford claim
previously denied that determination.
(e) Loan Data.--
(1) Report to person submitting petition.--
(A) In general.--Not later than 120 days after the
Secretary receives notice of a complaint filed by a claimant
under subsection (b), the Secretary shall provide to the
claimant a report on farm credit loans and noncredit
benefits, as appropriate, made within the claimant's county
(or if no documents are found, within an adjacent county as
determined by the claimant), by the Department during the
period beginning on January 1 of the year preceding the
period covered by the complaint and ending on December 31 of
the year following the period.
(B) Requirements.--A report under subparagraph (A) shall
contain information on all persons whose application for a
loan or benefit was accepted, including--
(i) the race of the applicant;
(ii) the date of application;
(iii) the date of the loan or benefit decision, as
appropriate;
(iv) the location of the office making the loan or benefit
decision, as appropriate;
(v) all data relevant to the decisionmaking process for the
loan or benefit, as appropriate; and
(vi) all data relevant to the servicing of the loan or
benefit, as appropriate.
(2) No personally identifiable information.--The reports
provided pursuant to paragraph (1) shall not contain any
information that would identify any person who applied for a
loan from the Department.
(3) Reporting deadline.--
(A) In general.--The Secretary shall--
[[Page H4622]]
(i) provide to claimants the reports required under
paragraph (1) as quickly as practicable after the Secretary
receives notice of a complaint filed by a claimant under
subsection (b); and
(ii) devote such resources of the Department as are
necessary to make providing the reports expeditiously a high
priority of the Department.
(B) Extension.--A court may extend the deadline for
providing the report required in a particular case under
paragraph (1) if the Secretary establishes that meeting the
deadline is not feasible and demonstrates a continuing effort
and commitment to provide the required report expeditiously.
(f) Expedited Resolutions Authorized.--
(1) In general.--Any person filing a complaint under this
section for discrimination in the application for, or making
or servicing of, a farm loan, at the discretion of the
person, may seek liquidated damages of $50,000, discharge of
the debt that was incurred under, or affected by, the 1 or
more programs that were the subject of the 1 or more
discrimination claims that are the subject of the person's
complaint, and a tax payment in the amount equal to 25
percent of the liquidated damages and loan principal
discharged, in which case--
(A) if only such damages, debt discharge, and tax payment
are sought, the complainant shall be able to prove the case
of the complainant by substantial evidence (as defined in
section 1(l) of the consent decree); and
(B) the court shall decide the case based on a review of
documents submitted by the complainant and defendant relevant
to the issues of liability and damages.
(2) Noncredit claims.--
(A) Standard.--In any case in which a claimant asserts a
noncredit claim under a benefit program of the Department,
the court shall determine the merits of the claim in
accordance with section 9(b)(i) of the consent decree.
(B) Relief.--A claimant who prevails on a claim of
discrimination involving a noncredit benefit program of the
Department shall be entitled to a payment by the Department
in a total amount of $3,000, without regard to the number of
such claims on which the claimant prevails.
(g) Actual Damages.--A claimant who files a claim under
this section for discrimination under subsection (b) but not
under subsection (f) and who prevails on the claim shall be
entitled to actual damages sustained by the claimant.
(h) Limitation on Foreclosures.--Notwithstanding any other
provision of law, during the pendency of a Pigford claim, the
Secretary may not begin acceleration on or foreclosure of a
loan if--
(1) the borrower is a Pigford claimant; and
(2) makes a prima facie case in an appropriate
administrative proceeding that the acceleration or
foreclosure is related to a Pigford claim.
(i) Funding.--
(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall make available for payments
and debt relief in satisfaction of claims against the United
States under subsection (b) and for any actions under
subsection (g) $100,000,000 for fiscal year 2008, to remain
available until expended.
(2) Authorization of appropriations.--In addition to funds
made available under paragraph (1), there are authorized to
be appropriated such sums as are necessary to carry out this
section.
(j) Reporting Requirements.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act and every 180 days thereafter until
the funds made available under subsection (i) are depleted,
the Secretary shall submit to the Committee on the Judiciary
of the House of Representatives and the Committee on the
Judiciary of the Senate a report that describes the status of
available funds under subsection (i) and the number of
pending claims under subsection (f).
(2) Depletion of funds report.--In addition to the reports
required under paragraph (1), the Secretary shall submit to
the Committee on the Judiciary of the House of
Representatives and the Committee on the Judiciary of the
Senate a report that notifies the Committees when 75 percent
of the funds made available under subsection (i)(1) have been
depleted.
(k) Termination of Authority.--The authority to file a
claim under this section terminates 2 years after the date of
the enactment of this Act.
SEC. 14013. OFFICE OF ADVOCACY AND OUTREACH.
(a) In General.--The Department of Agriculture
Reorganization Act of 1994 is amended by inserting after
section 226A (7 U.S.C. 6933) the following:
``SEC. 226B. OFFICE OF ADVOCACY AND OUTREACH.
``(a) Definitions.--In this section:
``(1) Beginning farmer or rancher.--The term `beginning
farmer or rancher' has the meaning given the term in section
343(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1991(a)).
``(2) Office.--The term `Office' means the Office of
Advocacy and Outreach established under this section.
``(3) Socially disadvantaged farmer or rancher.--The term
`socially disadvantaged farmer or rancher' has the meaning
given the term in section 2501(e) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)).
``(b) Establishment and Purpose.--
``(1) In general.--The Secretary shall establish within the
executive operations of the Department an office to be known
as the `Office of Advocacy and Outreach'--
``(A) to improve access to programs of the Department; and
``(B) to improve the viability and profitability of--
``(i) small farms and ranches;
``(ii) beginning farmers or ranchers; and
``(iii) socially disadvantaged farmers or ranchers.
``(2) Director.--The Office shall be headed by a Director,
to be appointed by the Secretary from among the competitive
service.
``(c) Duties.--The duties of the Office shall be to ensure
small farms and ranches, beginning farmers or ranchers, and
socially disadvantaged farmers or ranchers access to, and
equitable participation in, programs and services of the
Department by--
``(1) establishing and monitoring the goals and objectives
of the Department to increase participation in programs of
the Department by small, beginning, or socially disadvantaged
farmers or ranchers;
``(2) assessing the effectiveness of Department outreach
programs;
``(3) developing and implementing a plan to coordinate
outreach activities and services provided by the Department;
``(4) providing input to the agencies and offices on
programmatic and policy decisions;
``(5) measuring outcomes of the programs and activities of
the Department on small farms and ranches, beginning farmers
or ranchers, and socially disadvantaged farmers or ranchers
programs;
``(6) recommending new initiatives and programs to the
Secretary; and
``(7) carrying out any other related duties that the
Secretary determines to be appropriate.
``(d) Socially Disadvantaged Farmers Group.--
``(1) Establishment.--The Secretary shall establish within
the Office the Socially Disadvantaged Farmers Group.
``(2) Outreach and assistance.--The Socially Disadvantaged
Farmers Group--
``(A) shall carry out section 2501 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
2279); and
``(B) in the case of activities described in section
2501(a) of that Act, may conduct such activities through
other agencies and offices of the Department.
``(3) Socially disadvantaged farmers and farmworkers.--The
Socially Disadvantaged Farmers Group shall oversee the
operations of--
``(A) the Advisory Committee on Minority Farmers
established under section 14009 of the Food, Conservation,
and Energy Act of 2008; and
``(B) the position of Farmworker Coordinator established
under subsection (f).
``(4) Other duties.--
``(A) In general.--The Socially Disadvantaged Farmers Group
may carry out other duties to improve access to, and
participation in, programs of the Department by socially
disadvantaged farmers or ranchers, as determined by the
Secretary.
``(B) Office of outreach and diversity.--The Office of
Advocacy and Outreach shall carry out the functions and
duties of the Office of Outreach and Diversity carried out by
the Assistant Secretary for Civil Rights as such functions
and duties existed immediately before the date of the
enactment of this section.
``(e) Small Farms and Beginning Farmers and Ranchers
Group.--
``(1) Establishment.--The Secretary shall establish within
the Office the Small Farms and Beginning Farmers and Ranchers
Group.
``(2) Duties.--
``(A) Oversee offices.--The Small Farms and Beginning
Farmers and Ranchers Group shall oversee the operations of
the Office of Small Farms Coordination established by
Departmental Regulation 9700-1 (August 3, 2006).
``(B) Beginning farmer and rancher development program.--
The Small Farms and Beginning Farmers and Ranchers Group
shall consult with the National Institute for Food and
Agriculture on the administration of the beginning farmer and
rancher development program established under section 7405 of
the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
3319f).
``(C) Advisory committee for beginning farmers and
ranchers.--The Small Farms and Beginning Farmers and Ranchers
Group shall coordinate the activities of the Group with the
Advisory Committee for Beginning Farmers and Ranchers
established under section 5(b) of the Agricultural Credit
Improvement Act of 1992 (7 U.S.C. 1621 note; Public Law 102-
554).
``(D) Other duties.--The Small Farms and Beginning Farmers
and Ranchers Group may carry out other duties to improve
access to, and participation in, programs of the Department
by small farms and ranches and beginning farmers or ranchers,
as determined by the Secretary.
``(f) Farmworker Coordinator.--
``(1) Establishment.--The Secretary shall establish within
the Office the position of Farmworker Coordinator (referred
to in this subsection as the `Coordinator').
``(2) Duties.--The Secretary shall delegate to the
Coordinator responsibility for the following:
``(A) Assisting in administering the program established by
section 2281 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (42 U.S.C. 5177a).
[[Page H4623]]
``(B) Serving as a liaison to community-based nonprofit
organizations that represent and have demonstrated experience
serving low-income migrant and seasonal farmworkers.
``(C) Coordinating with the Department, other Federal
agencies, and State and local governments to ensure that
farmworker needs are assessed and met during declared
disasters and other emergencies.
``(D) Consulting within the Office and with other entities
to better integrate farmworker perspectives, concerns, and
interests into the ongoing programs of the Department.
``(E) Consulting with appropriate institutions on research,
program improvements, or agricultural education opportunities
that assist low-income and migrant seasonal farmworkers.
``(F) Assisting farmworkers in becoming agricultural
producers or landowners.
``(3) Authorization of appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this subsection for each of fiscal years 2009
through 2012.''.
(b) Conforming Amendment.--Section 296(b) of the Department
of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)),
as amended by section 7511(b), is further amended--
(1) in paragraph (5), by striking ``; or'' and inserting
``;'';
(2) in paragraph (6), by striking the period and inserting
``; or''; and
(3) by adding at the end the following new paragraph:
``(7) the authority of the Secretary to establish in the
Department the Office of Advocacy and Outreach in accordance
with section 226B.''.
Subtitle B--Agricultural Security
SEC. 14101. SHORT TITLE.
This subtitle may be cited as the ``Agricultural Security
Improvement Act of 2008''.
SEC. 14102. DEFINITIONS.
In this subtitle:
(1) Agent.--The term ``agent'' means a nuclear, biological,
chemical, or radiological substance that causes agricultural
disease or the adulteration of products regulated by the
Secretary of Agriculture under any provision of law.
(2) Agricultural biosecurity.--The term ``agricultural
biosecurity'' means protection from an agent that poses a
threat to--
(A) plant or animal health;
(B) public health as it relates to the adulteration of
products regulated by the Secretary of Agriculture under any
provision of law that is caused by exposure to an agent; or
(C) the environment as it relates to agriculture
facilities, farmland, and air and water within the immediate
vicinity of an area associated with an agricultural disease
or outbreak.
(3) Agricultural countermeasure.--The term ``agricultural
countermeasure''--
(A) means a product, practice, or technology that is
intended to enhance or maintain the agricultural biosecurity
of the United States; and
(B) does not include a product, practice, or technology
used solely in response to a human medical incident or public
health emergency not related to agriculture.
(4) Agricultural disease.--The term ``agricultural
disease'' has the meaning given the term by the Secretary.
(5) Agricultural disease emergency.--The term
``agricultural disease emergency'' means an incident of
agricultural disease that requires prompt action to prevent
significant damage to people, plants, or animals.
(6) Agroterrorist act.--The term ``agroterrorist act''
means an act that--
(A) causes or attempts to cause--
(i) damage to agriculture; or
(ii) injury to a person associated with agriculture; and
(B) is committed or appears to be committed with the intent
to--
(i) intimidate or coerce a civilian population; or
(ii) disrupt the agricultural industry in order to
influence the policy of a government by intimidation or
coercion.
(7) Animal.--The term ``animal'' has the meaning given the
term in section 10403 of the Animal Health Protection Act of
2002 (7 U.S.C. 8302).
(8) Department.--The term ``Department'' means the
Department of Agriculture.
(9) Development.--The term ``development'' means--
(A) research leading to the identification of products or
technologies intended for use as agricultural countermeasures
to protect animal health;
(B) the formulation, production, and subsequent
modification of those products or technologies;
(C) the conduct of in vitro and in vivo studies;
(D) the conduct of field, efficacy, and safety studies;
(E) the preparation of an application for marketing
approval for submission to an applicable agency; or
(F) other actions taken by an applicable agency in a case
in which an agricultural countermeasure is procured or used
prior to issuance of a license or other form of Federal
Government approval.
(10) Plant.--The term ``plant'' has the meaning given the
term in section 411 of the Plant Protection Act of 2000 (7
U.S.C. 7702).
(11) Qualified agricultural countermeasure.--The term
``qualified agricultural countermeasure'' means an
agricultural countermeasure that the Secretary, in
consultation with the Secretary of Homeland Security,
determines to be a priority in order to address an
agricultural biosecurity threat.
CHAPTER 1--AGRICULTURAL SECURITY
SEC. 14111. OFFICE OF HOMELAND SECURITY.
(a) Establishment.--There is established within the
Department the Office of Homeland Security (in this section
referred to as the ``Office'').
(b) Director.--The Office shall be headed by a Director of
Homeland Security, who shall be appointed by the Secretary.
(c) Responsibilities.--The Director of Homeland Security
shall--
(1) coordinate all homeland security activities of the
Department, including integration and coordination of
interagency emergency response plans for--
(A) agricultural disease emergencies;
(B) agroterrorist acts; and
(C) other threats to agricultural biosecurity;
(2) act as the primary liaison on behalf of the Department
with other Federal departments and agencies on the
coordination of efforts and interagency activities pertaining
to agricultural biosecurity; and
(3) advise the Secretary on policies, regulations,
processes, budget, and actions pertaining to homeland
security.
SEC. 14112. AGRICULTURAL BIOSECURITY COMMUNICATION CENTER.
(a) Establishment.--The Secretary shall establish a
communication center within the Department to--
(1) collect and disseminate information and prepare for an
agricultural disease emergency, agroterrorist act, or other
threat to agricultural biosecurity; and
(2) coordinate activities described in paragraph (1) among
agencies and offices within the Department.
(b) Relation to Existing DHS Communication Systems.--
(1) Consistency and coordination.--The communication center
established under subsection (a) shall, to the maximum extent
practicable, share and coordinate the dissemination of timely
information with the Department of Homeland Security and
other communication systems of appropriate Federal
departments and agencies.
(2) Avoiding redundancies.--Paragraph (1) shall not be
construed to impede, conflict with, or duplicate the
communications activities performed by the Secretary of
Homeland Security under any provision of law.
(c) Authorization of Appropriations.--There is authorized
to be appropriated such sums as may be necessary to carry out
this section for each of fiscal years 2008 through 2012.
SEC. 14113. ASSISTANCE TO BUILD LOCAL CAPACITY IN
AGRICULTURAL BIOSECURITY PLANNING,
PREPAREDNESS, AND RESPONSE.
(a) Advanced Training Programs.--
(1) Grant assistance.--The Secretary shall establish a
competitive grant program to support the development and
expansion of advanced training programs in agricultural
biosecurity planning and response for food science
professionals and veterinarians.
(2) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary such sums as may be
necessary to carry out this subsection for each of fiscal
years 2008 through 2012.
(b) Assessment of Response Capability.--
(1) Grant and loan assistance.--The Secretary shall
establish a competitive grant and low-interest loan
assistance program to assist States in assessing agricultural
disease response capability.
(2) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $25,000,000
for each of fiscal years 2008 through 2012.
CHAPTER 2--OTHER PROVISIONS
SEC. 14121. RESEARCH AND DEVELOPMENT OF AGRICULTURAL
COUNTERMEASURES.
(a) Grant Program.--
(1) Competitive grant program.--The Secretary shall
establish a competitive grant program to encourage basic and
applied research and the development of qualified
agricultural countermeasures.
(2) Waiver in emergencies.--The Secretary may waive the
requirement under paragraph (1) that a grant be provided on a
competitive basis if--
(A) the Secretary has declared a plant or animal disease
emergency under the Plant Protection Act (7 U.S.C. 7701 et
seq.) or the Animal Health Protection Act (7 U.S.C. 8301 et
seq.); and
(B) waiving the requirement would lead to the rapid
development of a qualified agricultural countermeasure, as
determined by the Secretary.
(b) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $50,000,000 for
each of fiscal years 2008 through 2012.
SEC. 14122. AGRICULTURAL BIOSECURITY GRANT PROGRAM.
(a) Competitive Grant Program.--The Secretary shall
establish a competitive grant program to promote the
development of teaching programs in agriculture, veterinary
medicine, and disciplines closely allied to the food and
agriculture system to increase the number of trained
individuals with an expertise in agricultural biosecurity.
(b) Eligibility.--The Secretary may award a grant under
this section only to an entity that is--
[[Page H4624]]
(1) an accredited school of veterinary medicine; or
(2) a department of an institution of higher education with
a primary focus on--
(A) comparative medicine;
(B) veterinary science; or
(C) agricultural biosecurity.
(c) Preference.--The Secretary shall give preference in
awarding grants based on the ability of an applicant--
(1) to increase the number of veterinarians or individuals
with advanced degrees in food and agriculture disciplines who
are trained in agricultural biosecurity practice areas;
(2) to increase research capacity in areas of agricultural
biosecurity; or
(3) to fill critical agricultural biosecurity shortage
situations outside of the Federal Government.
(d) Use of Funds..--
(1) In general.--Amounts received under this section shall
be used by a grantee to pay--
(A) costs associated with the acquisition of equipment and
other capital costs relating to the expansion of food,
agriculture, and veterinary medicine teaching programs in
agricultural biosecurity;
(B) capital costs associated with the expansion of academic
programs that offer postgraduate training for veterinarians
or concurrent training for veterinary students in specific
areas of specialization; or
(C) other capacity and infrastructure program costs that
the Secretary considers appropriate.
(2) Limitation.--Funds received under this section may not
be used for the construction, renovation, or rehabilitation
of a building or facility.
(e) Authorization of Appropriations.--There are authorized
to be appropriated sums as are necessary to carry out this
section for each of fiscal years 2008 through 2012, to remain
available until expended.
Subtitle C--Other Miscellaneous Provisions
SEC. 14201. COTTON CLASSIFICATION SERVICES.
Section 3a of the Act of March 3, 1927 (7 U.S.C. 473a), is
amended to read as follows:
``SEC. 3A. COTTON CLASSIFICATION SERVICES.
``(a) In General.--The Secretary of Agriculture (referred
to in this section as the `Secretary') shall--
``(1) make cotton classification services available to
producers of cotton; and
``(2) provide for the collection of classification fees
from participating producers or agents that voluntarily agree
to collect and remit the fees on behalf of producers.
``(b) Fees.--
``(1) Use of fees.--Classification fees collected under
subsection (a)(2) and the proceeds from the sales of samples
submitted under this section shall, to the maximum extent
practicable, be used to pay the cost of the services provided
under this section, including administrative and supervisory
costs.
``(2) Announcement of fees.--The Secretary shall announce a
uniform classification fee and any applicable surcharge for
classification services not later than June 1 of the year in
which the fee applies.
``(c) Consultation.--
``(1) In general.--In establishing the amount of fees under
this section, the Secretary shall consult with
representatives of the United States cotton industry.
``(2) Exemption.--The Federal Advisory Committee Act (5
U.S.C. App.) shall not apply to consultations with
representatives of the United States cotton industry under
this section.
``(d) Crediting of Fees.--Any fees collected under this
section and under section 3d, late payment penalties, the
proceeds from the sales of samples, and interest earned from
the investment of such funds shall--
``(1) be credited to the current appropriation account that
incurs the cost of services provided under this section and
section 3d; and
``(2) remain available without fiscal year limitation to
pay the expenses of the Secretary in providing those
services.
``(e) Investment of Funds.--Funds described in subsection
(d) may be invested--
``(1) by the Secretary in insured or fully collateralized,
interest-bearing accounts; or
``(2) at the discretion of the Secretary, by the Secretary
of the Treasury in United States Government debt instruments.
``(f) Lease Agreements.--Notwithstanding any other
provision of law, the Secretary may enter into long-term
lease agreements that exceed 5 years or may take title to
property (including through purchase agreements) for the
purpose of obtaining offices to be used for the
classification of cotton in accordance with this Act, if the
Secretary determines that action would best effectuate the
purposes of this Act.
``(g) Authorization of Appropriations.--To the extent that
financing is not available from fees and the proceeds from
the sales of samples, there are authorized to be appropriated
such sums as are necessary to carry out this section.''.
SEC. 14202. DESIGNATION OF STATES FOR COTTON RESEARCH AND
PROMOTION.
Section 17(f) of the Cotton Research and Promotion Act (7
U.S.C. 2116(f)) is amended--
(1) by striking ``(f) The term'' and inserting the
following:
``(f) Cotton-Producing State.--
``(1) In general.--The term'';
(2) by striking ``more, and the term'' and all that follows
through the end of the subsection and inserting the
following: ``more.
``(2) Inclusions.--The term `cotton-producing State'
includes--
``(A) any combination of States described in paragraph (1);
and
``(B) effective beginning with the 2008 crop of cotton, the
States of Kansas, Virginia, and Florida.''.
SEC. 14203. GRANTS TO REDUCE PRODUCTION OF METHAMPHETAMINES
FROM ANHYDROUS AMMONIA.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a producer of agricultural commodities;
(B) a cooperative association, a majority of the members of
which produce or process agricultural commodities; or
(C) a person in the trade or business of--
(i) selling an agricultural product (including an
agricultural chemical) at retail, predominantly to farmers
and ranchers; or
(ii) aerial and ground application of an agricultural
chemical.
(2) Nurse tank.--The term ``nurse tank'' shall be
considered to be a cargo tank (within the meaning of section
173.315(m) of title 49, Code of Federal Regulations, as in
effect as of the date of the enactment of this Act).
(b) Grant Authority.--The Secretary may make a grant to an
eligible entity to enable the eligible entity to obtain and
add to an anhydrous ammonia fertilizer nurse tank a physical
lock or a substance to reduce the amount of methamphetamine
that can be produced from any anhydrous ammonia removed from
the nurse tank.
(c) Grant Amount.--The amount of a grant made under this
section to an eligible entity shall be the product obtained
by multiplying--
(1) an amount not less than $40 and not more than $60, as
determined by the Secretary; and
(2) the number of fertilizer nurse tanks of the eligible
entity.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to make grants under this
section $15,000,000 for the period of fiscal years 2008
through 2012.
SEC. 14204. GRANTS TO IMPROVE SUPPLY, STABILITY, SAFETY, AND
TRAINING OF AGRICULTURAL LABOR FORCE.
(a) Definition of Eligible Entity.--In this section, the
term ``eligible entity'' means an entity described in section
379C(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 2008q(a)).
(b) Grants.--
(1) In general.--To assist agricultural employers and
farmworkers by improving the supply, stability, safety, and
training of the agricultural labor force, the Secretary may
provide grants to eligible entities for use in providing
services to assist farmworkers who are citizens or otherwise
legally present in the United States in securing, retaining,
upgrading, or returning from agricultural jobs.
(2) Eligible services.--The services referred to in
paragraph (1) include--
(A) agricultural labor skills development;
(B) the provision of agricultural labor market information;
(C) transportation;
(D) short-term housing while in transit to an agricultural
worksite;
(E) workplace literacy and assistance with English as a
second language;
(F) health and safety instruction, including ways of
safeguarding the food supply of the United States; and
(G) such other services as the Secretary determines to be
appropriate.
(c) Limitation on Administrative Expenses.--Not more than
15 percent of the funds made available to carry out this
section for a fiscal year may be used to pay for
administrative expenses.
(d) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section for each of fiscal years 2008 through 2012.
SEC. 14205. AMENDMENT TO THE RIGHT TO FINANCIAL PRIVACY ACT
OF 1978.
Section 1113(k) of the Right to Financial Privacy Act of
1978 (12 U.S.C. 3413(k)) is amended--
(1) by striking the subsection heading and inserting the
following:
``(k) Disclosure Necessary for Proper Administration of
Programs of Certain Government Authorities.--''; and
(2) by striking paragraph (2) and inserting the following:
``(2) Nothing in this title shall apply to the disclosure
by the financial institution of information contained in the
financial records of any customer to any Government authority
that certifies, disburses, or collects payments, where the
disclosure of such information is necessary to, and such
information is used solely for the purpose of--
``(A) verification of the identity of any person or proper
routing and delivery of funds in connection with the issuance
of a Federal payment or collection of funds by a Government
authority; or
``(B) the investigation or recovery of an improper Federal
payment or collection of funds or an improperly negotiated
Treasury check.
``(3) Notwithstanding any other provision of law, a request
authorized by paragraph (1) or (2) (and the information
contained therein) may be used by the financial institution
or its agents solely for the purpose of providing information
contained in the financial records of the customer to the
Government authority requesting the information, and the
financial institution and its agents shall be barred from
redisclosure of such information. Any Government authority
receiving information pursuant to paragraph
[[Page H4625]]
(1) or (2) may not disclose or use the information, except
for the purposes set forth in such paragraph.''.
SEC. 14206. REPORT ON STORED QUANTITIES OF PROPANE.
(a) Report.--
(1) In general.--Not later than 240 days after the date of
the enactment of this Act, the Secretary of Homeland Security
(referred to in this section as the ``Secretary'') shall
submit to the Committee on Agriculture, Nutrition, and
Forestry of the Senate and the Committee on Agriculture of
the House of Representatives a report describing the effect
of interim or final regulations issued by the Secretary
pursuant to section 550(a) of the Department of Homeland
Security Appropriations Act, 2007 (6 U.S.C. 121 note; Public
Law 109-295), with respect to possession of quantities of
propane that meet or exceed the screening threshold quantity
for propane established in the final rule under that section.
(2) Inclusions.--The report under paragraph (1) shall
include a description of--
(A) the number of facilities that completed a top screen
consequence assessment due to possession of quantities of
propane that meet or exceed the listed screening threshold
quantity for propane;
(B) the number of agricultural facilities that completed
the top screen consequence assessment due to possession of
quantities of propane that meet or exceed the listed
screening threshold quantity for propane;
(C) the number of propane facilities initially determined
to be high risk by the Secretary;
(D) the number of propane facilities--
(i) required to complete a security vulnerability
assessment or a site security plan; or
(ii) that submit to the Secretary an alternative security
program;
(E) the number of propane facilities that file an appeal of
a finding under the final rule described in paragraph (1);
and
(F) to the extent available, the average cost of--
(i) completing a top screen consequence assessment
requirement;
(ii) completing a security vulnerability assessment; and
(iii) completing and implementing a site security plan; and
(3) Form.--The report under paragraph (1) shall be
submitted in unclassified form, but may include a classified
annex.
(b) Educational Outreach.--Not later than 30 days after the
date of the enactment of this Act, the Secretary shall
conduct educational outreach activities for rural facilities
that may be required to complete a top screen consequence
assessment due to possession of propane in a quantity that
meets or exceeds the listed screening threshold quantity for
propane.
SEC. 14207. PROHIBITIONS ON DOG FIGHTING VENTURES.
(a) In General.--Section 26 of the Animal Welfare Act (7
U.S.C. 2156) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``, if any animal in the
venture was moved in interstate or foreign commerce''; and
(B) in the heading of paragraph (2), by striking ``state''
and inserting ``State'';
(2) in subsection (b)--
(A) by striking ``(b) It shall be'' and inserting the
following:
``(b) Buying, Selling, Delivering, Possessing, Training, or
Transporting Animals for Participation in Animal Fighting
Venture.--It shall be''; and
(B) by striking ``transport, deliver'' and all that follows
through ``participate'' and inserting ``possess, train,
transport, deliver, or receive any animal for purposes of
having the animal participate'';
(3) in subsection (c)--
(A) by striking ``(c) It shall be'' and inserting the
following:
``(c) Use of Postal Service or Other Interstate
Instrumentality for Promoting or Furthering Animal Fighting
Venture.--It shall be''; and
(B) by inserting ``advertising an animal, or an instrument
described in subsection (e), for use in an animal fighting
venture,'' after ``for purposes of'';
(4) in subsection (d), by striking ``(d) Notwithstanding''
and inserting the following:
``(d) Violation of State Law.--Notwithstanding'';
(5) in subsection (e), by striking ``(e) It shall be'' and
inserting the following:
``(e) Buying, Selling, Delivering, or Transporting Sharp
Instruments for Use in Animal Fighting Venture.--It shall
be'';
(6) in subsection (f)--
(A) by striking ``(f) The Secretary'' and inserting the
following:
``(f) Investigation of Violations by Secretary; Assistance
by Other Federal Agencies; Issuance of Search Warrant;
Forfeiture; Costs Recoverable in Forfeiture or Civil
Action.--The Secretary''; and
(B) in the last sentence--
(i) by striking ``by the United States'';
(ii) by inserting ``(1)'' after ``owner of the animals'';
and
(iii) by striking ``proceeding or in'' and inserting
``proceeding, or (2) in'';
(7) in subsection (g)--
(A) by striking ``(g) For purposes of'' and inserting the
following:
``(g) Definitions.--In'';
(B) in paragraph (1), by striking ``any event'' and all
that follows through ``entertainment'' and inserting ``any
event, in or affecting interstate or foreign commerce, that
involves a fight conducted or to be conducted between at
least 2 animals for purposes of sport, wagering, or
entertainment,'';
(C) by striking paragraph (2);
(D) in paragraph (5)--
(i) by striking ``dog or other''; and
(ii) by striking ``; and'' and inserting a period; and
(E) by redesignating paragraphs (3) through (5) as
paragraphs (2) through (4), respectively;
(8) by redesignating subsections (h) and (i) as subsections
(i) and (j), respectively;
(9) in subsection (i) (as so redesignated), by striking
``(i)(1) The provisions'' and inserting the following:
``(i) Conflict With State Law.--
``(1) In general.--The provisions'';
(10) in subsection (j) (as so redesignated), by striking
``(j) The criminal'' and inserting the following:
``(j) Criminal Penalties.--The criminal''; and
(11) in subsection (g)(6), by striking ``(6) the conduct''
and inserting the following:
``(h) Relationship to Other Provisions.--The conduct''.
(b) Enforcement of Animal Fighting Prohibitions.--Section
49 of title 18, United States Code, is amended by striking
``3 years'' and inserting ``5 years''.
SEC. 14208. DEPARTMENT OF AGRICULTURE CONFERENCE
TRANSPARENCY.
(a) Report.--
(1) Requirement.--Not later than September 30 of each year,
the Secretary of Agriculture shall submit to the Committee on
Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate, a
report on conferences sponsored or held by the Department of
Agriculture or attended by employees of the Department of
Agriculture.
(2) Contents.--Each report under paragraph (1) shall
contain--
(A) for each conference sponsored or held by the Department
or attended by employees of the Department--
(i) the name of the conference;
(ii) the location of the conference;
(iii) the number of Department of Agriculture employees
attending the conference; and
(iv) the costs (including travel expenses) relating to such
conference; and
(B) for each conference sponsored or held by the Department
of Agriculture for which the Department awarded a procurement
contract, a description of the contracting procedures related
to such conference.
(3) Exclusions.--The requirement in paragraph (1) shall not
apply to any conference--
(A) for which the cost to the Federal Government was less
than $10,000; or
(B) outside of the United States that is attended by the
Secretary or the Secretary's designee as an official
representative of the United States government.
(b) Availability of Report.--Each report submitted in
accordance with subsection (a) shall be posted in a
searchable format on a Department of Agriculture website that
is available to the public.
(c) Definition of Conference.--In this section, the term
``conference''--
(1) means a meeting that--
(A) is held for consultation, education, awareness, or
discussion;
(B) includes participants from at least one agency of the
Department of Agriculture;
(C) is held in whole or in part at a facility outside of an
agency of the Department of Agriculture; and
(D) involves costs associated with travel and lodging for
some participants; and
(2) does not include any training program that is
continuing education or a curriculum-based educational
program, provided that such training program is held
independent of a conference of a non-governmental
organization.
SEC. 14209. FEDERAL INSECTICIDE, FUNGICIDE, AND RODENTICIDE
ACT AMENDMENTS.
(a) Payment of Expenses.--Section 17(d) of the Federal
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C.
136o(d)) is amended--
(1) by striking ``The Administrator'' and inserting the
following:
``(1) In general.--The Administrator''; and
(2) by adding at the end the following new paragraph:
``(2) Department of state expenses.--Any expenses incurred
by an employee of the Environmental Protection Agency who
participates in any international technical, economic, or
policy review board, committee, or other official body that
is meeting in relation to an international treaty shall be
paid by the Department of State.''.
(b) Container Recycling.--Section 19(a) of the Federal
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C.
136q(a)) is amended by adding at the end the following new
paragraph:
``(4) Container recycling.--The Secretary may promulgate a
regulation for the return and recycling of disposable
pesticide containers used for the distribution or sale of
registered pesticide products in interstate commerce. Any
such regulation requiring recycling of disposable pesticide
containers shall not apply to antimicrobial pesticides (as
defined in section 2) or other pesticide products intended
for non-agricultural uses.''.
SEC. 14210. IMPORTATION OF LIVE DOGS.
(a) In General.--The Animal Welfare Act is amended by
adding after section 17 (7 U.S.C. 2147) the following:
``SEC. 18. IMPORTATION OF LIVE DOGS.
``(a) Definitions.--In this section:
[[Page H4626]]
``(1) Importer.--The term `importer' means any person who,
for purposes of resale, transports into the United States
puppies from a foreign country.
``(2) Resale.--The term `resale' includes any transfer of
ownership or control of an imported dog of less than 6 months
of age to another person, for more than de minimis
consideration.
``(b) Requirements.--
``(1) In general.--Except as provided in paragraph (2), no
person shall import a dog into the United States for purposes
of resale unless, as determined by the Secretary, the dog--
``(A) is in good health;
``(B) has received all necessary vaccinations; and
``(C) is at least 6 months of age, if imported for resale.
``(2) Exception.--
``(A) In general.--The Secretary, by regulation, shall
provide an exception to any requirement under paragraph (1)
in any case in which a dog is imported for--
``(i) research purposes; or
``(ii) veterinary treatment.
``(B) Lawful importation into hawaii.--Paragraph (1)(C)
shall not apply to the lawful importation of a dog into the
State of Hawaii from the British Isles, Australia, Guam, or
New Zealand in compliance with the applicable regulations of
the State of Hawaii and the other requirements of this
section, if the dog is not transported out of the State of
Hawaii for purposes of resale at less than 6 months of age.
``(c) Implementation and Regulations.--The Secretary, the
Secretary of Health and Human Services, the Secretary of
Commerce, and the Secretary of Homeland Security shall
promulgate such regulations as the Secretaries determine to
be necessary to implement and enforce this section.
``(d) Enforcement.--An importer that fails to comply with
this section shall--
``(1) be subject to penalties under section 19; and
``(2) provide for the care (including appropriate
veterinary care), forfeiture, and adoption of each applicable
dog, at the expense of the importer.''.
(b) Effective Date.--The amendment made by subsection (a)
takes effect on the date of the enactment of this Act.
SEC. 14211. PERMANENT DEBARMENT FROM PARTICIPATION IN
DEPARTMENT OF AGRICULTURE PROGRAMS FOR FRAUD.
(a) In General.--Subject to subsection (b), the Secretary
of Agriculture shall permanently debar an individual,
organization, corporation, or other entity convicted of a
felony for knowingly defrauding the United States in
connection with any program administered by the Department of
Agriculture from any subsequent participation in Department
of Agriculture programs.
(b) Exceptions.--
(1) Secretary determination.--The Secretary may reduce a
debarment under subsection (a) to a period of not less than
10 years if the Secretary considers it appropriate.
(2) Food assistance.--A debarment under subsection (a)
shall not apply with respect to participation in domestic
food assistance programs (as defined by the Secretary).
SEC. 14212. PROHIBITION ON CLOSURE OR RELOCATION OF COUNTY
OFFICES FOR THE FARM SERVICE AGENCY.
(a) Temporary Prohibition.--
(1) In general.--Subject to paragraph (2), until the date
that is two years after the date of the enactment of this
Act, the Secretary of Agriculture may not close or relocate a
county or field office of the Farm Service Agency.
(2) Exception.--Paragraph (1) shall not apply to--
(A) an office that is located not more than 20 miles from
another office of the Farm Service Agency; or
(B) the relocation of an office within the same county in
the course of routine leasing operations.
(b) Limitation on Closure; Notice.--
(1) Limitation.--After the period referred to in subsection
(a)(1), the Secretary shall, before closing any office of the
Farm Service Agency that is located more than 20 miles from
another office of the Farm Service Agency, to the maximum
extent practicable, first close any offices of the Farm
Service Agency that--
(A) are located less than 20 miles from another office of
the Farm Service Agency; and
(B) have two or fewer permanent full-time employees.
(2) Notice.--After the period referred to in subsection
(a)(1), the Secretary of Agriculture may not close a county
or field office of the Farm Service Agency unless--
(A) not later than 30 days after the Secretary proposes to
close such office, the Secretary holds a public meeting
regarding the proposed closure in the county in which such
office is located; and
(B) after the public meeting referred to in subparagraph
(A), but not less than 90 days before the date on which the
Secretary approves the closure of such office, the Secretary
notifies the Committee on Agriculture and the Committee on
Appropriations of the House of Representatives, the Committee
on Agriculture, Nutrition, and Forestry and the Committee on
Appropriations of the Senate, each Senator representing the
State in which the office proposed to be closed is located,
and the member of the House of Representatives who represents
the Congressional district in which the office proposed to be
closed is located of the proposed closure of such office.
SEC. 14213. USDA GRADUATE SCHOOL.
(a) In General.--Section 921 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 2279b) is
amended--
(1) in the heading, to read as follows:
``SEC. 921. DEPARTMENT OF AGRICULTURE EDUCATIONAL, TRAINING,
AND PROFESSIONAL DEVELOPMENT ACTIVITIES.''; AND
(2) by striking subsection (b) and inserting the following
new subsection:
``(b) Operation as Nonappropriated Fund Instrumentality.--
``(1) Cease operations.--Not later than October 1, 2009,
the Secretary of Agriculture shall cease to maintain or
operate a nonappropriated fund instrumentality of the United
States to develop, administer, or provide educational
training and professional development activities, including
educational activities for Federal agencies, Federal
employees, non-profit organizations, other entities, and
members of the general public.
``(2) Transition.--
``(A) In general.--The Secretary of Agriculture is
authorized to use funds available to the Department of
Agriculture and such resources of the Department as the
Secretary considers appropriate (including the assignment of
such employees of the Department as the Secretary considers
appropriate) to assist the General Administrative Board of
the Graduate School in the conversion of the Graduate School
to an entity that is non-governmental and not a
nonappropriated fund instrumentality of the United States,
including such privatization activities not otherwise
inconsistent with law or regulation.
``(B) Termination of authority.--The authority under
paragraph (1) shall terminate on the earlier of--
``(i) the completion of the transition of the Graduate
School to an entity that is non-governmental and not a
nonappropriated fund instrumentality of the United States, as
determined by the Secretary; or
``(ii) September 30, 2009.''.
(b) Procurement Procedures.--Notwithstanding the amendments
made by subsection (a), effective on the date of the
enactment of this Act, the Graduate School of the Department
of Agriculture shall be subject to Federal procurement laws
and regulations in the same manner and subject to the same
requirements as a private entity providing services to the
Federal Government.
SEC. 14214. FINES FOR VIOLATIONS OF THE ANIMAL WELFARE ACT.
Section 19(b) of the Animal Welfare Act (7 U.S.C. 2149(b))
is amended in the first sentence by striking ``not more than
$2,500 for each such violation'' and inserting ``not more
than $10,000 for each such violation''.
SEC. 14215. DEFINITION OF CENTRAL FILING SYSTEM.
Section 1324(c)(2) of the Food Security Act of 1985 (7
U.S.C. 1631(c)(2)) is amended--
(1) in subparagraph (C)(ii)(II), by inserting after ``such
debtors'' the following: ``, except that the numerical list
containing social security or taxpayer identification numbers
may be encrypted for security purposes if the Secretary of
State provides a method by which an effective search of the
encrypted numbers may be conducted to determine whether the
farm product at issue is subject to 1 or more liens''; and
(2) in subparagraph (E)--
(A) by striking ``paragraph (C)'' and inserting
``subparagraph (C)''; and
(B) by inserting before the semicolon at the end the
following: ``except that--
``(i) the distribution of the portion of the master list
may be in electronic, written, or printed form; and
``(ii) if social security or taxpayer identification
numbers on the master list are encrypted, the Secretary of
State may distribute the master list only--
``(I) by compact disc or other electronic media that
contains--
``(aa) the recorded list of debtor names; and
``(bb) an encryption program that enables the buyer,
commission merchant, and selling agent to enter a social
security number for matching against the recorded list of
encrypted social security or taxpayer identification numbers;
and
``(II) on the written request of the buyer, commission
merchant, or selling agent, by paper copy of the list to the
requestor''.
SEC. 14216. CONSIDERATION OF PROPOSED RECOMMENDATIONS OF
STUDY ON USE OF CATS AND DOGS IN FEDERAL
RESEARCH.
(a) In General.--The Secretary of Agriculture shall--
(1) review--
(A) any independent reviews conducted by a nationally
recognized panel of experts of the use of Class B dogs and
cats in federally supported research to determine how
frequently such dogs and cats are used in research by the
National Institutes of Health; and
(B) any recommendations proposed by such panel outlining
the parameters of such use; and
(2) submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report on how recommendations
referred to in paragraph (1)(B) can be applied within the
Department of Agriculture to ensure such dogs and cats are
treated in accordance with regulations of the Department of
Agriculture.
(b) Class B Dogs and Cats Defined.--In this section, the
term ``Class B dogs and
[[Page H4627]]
cats'' means dogs and cats obtained from a Class ``B''
licensee, as such term is defined in section 1.1 of title 9,
Code of Federal Regulations.
SEC. 14217. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT.
(a) In General.--Title 40, United States Code, is amended--
(1) by redesignating subtitle V as subtitle VI; and
(2) by inserting after subtitle IV the following:
``Subtitle V--Regional Economic and Infrastructure Development
``Chapter..............................................................
``151. GENERAL PROVISIONS.....................................15101....
``153. REGIONAL COMMISSIONS...................................15301....
``155. FINANCIAL ASSISTANCE...................................15501....
``157. ADMINISTRATIVE PROVISIONS..............................15701....
``CHAPTER 1--GENERAL PROVISIONS
``Sec.
``15101. Definitions.
``Sec. 15101. Definitions
``In this subtitle, the following definitions apply:
``(1) Commission.--The term `Commission' means a Commission
established under section 15301.
``(2) Local development district.--The term `local
development district' means an entity that--
``(A)(i) is an economic development district that is--
``(I) in existence on the date of the enactment of this
chapter; and
``(II) located in the region; or
``(ii) if an entity described in clause (i) does not
exist--
``(I) is organized and operated in a manner that ensures
broad-based community participation and an effective
opportunity for local officials, community leaders, and the
public to contribute to the development and implementation of
programs in the region;
``(II) is governed by a policy board with at least a simple
majority of members consisting of--
``(aa) elected officials; or
``(bb) designees or employees of a general purpose unit of
local government that have been appointed to represent the
unit of local government; and
``(III) is certified by the Governor or appropriate State
officer as having a charter or authority that includes the
economic development of counties, portions of counties, or
other political subdivisions within the region; and
``(B) has not, as certified by the Federal Cochairperson--
``(i) inappropriately used Federal grant funds from any
Federal source; or
``(ii) appointed an officer who, during the period in which
another entity inappropriately used Federal grant funds from
any Federal source, was an officer of the other entity.
``(3) Federal grant program.--The term `Federal grant
program' means a Federal grant program to provide assistance
in carrying out economic and community development
activities.
``(4) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(5) Nonprofit entity.--The term `nonprofit entity' means
any organization described in section 501(c) of the Internal
Revenue Code of 1986 and exempt from taxation under 501(a) of
that Code that has been formed for the purpose of economic
development.
``(6) Region.--The term `region' means the area covered by
a Commission as described in subchapter II of chapter 157.
``CHAPTER 2--REGIONAL COMMISSIONS
``Sec.
``15301. Establishment, membership, and employees.
``15302. Decisions.
``15303. Functions.
``15304. Administrative powers and expenses.
``15305. Meetings.
``15306. Personal financial interests.
``15307. Tribal participation.
``15308. Annual report.
``Sec. 15301. Establishment, membership, and employees
``(a) Establishment.--There are established the following
regional Commissions:
``(1) The Southeast Crescent Regional Commission.
``(2) The Southwest Border Regional Commission.
``(3) The Northern Border Regional Commission.
``(b) Membership.--
``(1) Federal and state members.--Each Commission shall be
composed of the following members:
``(A) A Federal Cochairperson, to be appointed by the
President, by and with the advice and consent of the Senate.
``(B) The Governor of each participating State in the
region of the Commission.
``(2) Alternate members.--
``(A) Alternate federal cochairperson.--The President shall
appoint an alternate Federal Cochairperson for each
Commission. The alternate Federal Cochairperson, when not
actively serving as an alternate for the Federal
Cochairperson, shall perform such functions and duties as are
delegated by the Federal Cochairperson.
``(B) State alternates.--The State member of a
participating State may have a single alternate, who shall be
appointed by the Governor of the State from among the members
of the Governor's cabinet or personal staff.
``(C) Voting.--An alternate member shall vote in the case
of the absence, death, disability, removal, or resignation of
the Federal or State member for which the alternate member is
an alternate.
``(3) Cochairpersons.--A Commission shall be headed by--
``(A) the Federal Cochairperson, who shall serve as a
liaison between the Federal Government and the Commission;
and
``(B) a State Cochairperson, who shall be a Governor of a
participating State in the region and shall be elected by the
State members for a term of not less than 1 year.
``(4) Consecutive terms.--A State member may not be elected
to serve as State Cochairperson for more than 2 consecutive
terms.
``(c) Compensation.--
``(1) Federal cochairpersons.--Each Federal Cochairperson
shall be compensated by the Federal Government at level III
of the Executive Schedule as set out in section 5314 of title
5.
``(2) Alternate federal cochairpersons.--Each Federal
Cochairperson's alternate shall be compensated by the Federal
Government at level V of the Executive Schedule as set out in
section 5316 of title 5.
``(3) State members and alternates.--Each State member and
alternate shall be compensated by the State that they
represent at the rate established by the laws of that State.
``(d) Executive Director and Staff.--
``(1) In general.--A Commission shall appoint and fix the
compensation of an executive director and such other
personnel as are necessary to enable the Commission to carry
out its duties. Compensation under this paragraph may not
exceed the maximum rate of basic pay established for the
Senior Executive Service under section 5382 of title 5,
including any applicable locality-based comparability payment
that may be authorized under section 5304(h)(2)(C) of that
title.
``(2) Executive director.--The executive director shall be
responsible for carrying out the administrative duties of the
Commission, directing the Commission staff, and such other
duties as the Commission may assign.
``(e) No Federal Employee Status.--No member, alternate,
officer, or employee of a Commission (other than the Federal
Cochairperson, the alternate Federal Cochairperson, staff of
the Federal Cochairperson, and any Federal employee detailed
to the Commission) shall be considered to be a Federal
employee for any purpose.
``Sec. 15302. Decisions
``(a) Requirements for Approval.--Except as provided in
section 15304(c)(3), decisions by the Commission shall
require the affirmative vote of the Federal Cochairperson and
a majority of the State members (exclusive of members
representing States delinquent under section 15304(c)(3)(C)).
``(b) Consultation.--In matters coming before the
Commission, the Federal Cochairperson shall, to the extent
practicable, consult with the Federal departments and
agencies having an interest in the subject matter.
``(c) Quorums.--A Commission shall determine what
constitutes a quorum for Commission meetings; except that--
``(1) any quorum shall include the Federal Cochairperson or
the alternate Federal Cochairperson; and
``(2) a State alternate member shall not be counted toward
the establishment of a quorum.
``(d) Projects and Grant Proposals.--The approval of
project and grant proposals shall be a responsibility of each
Commission and shall be carried out in accordance with
section 15503.
``Sec. 15303. Functions
``A Commission shall--
``(1) assess the needs and assets of its region based on
available research, demonstration projects, investigations,
assessments, and evaluations of the region prepared by
Federal, State, and local agencies, universities, local
development districts, and other nonprofit groups;
``(2) develop, on a continuing basis, comprehensive and
coordinated economic and infrastructure development
strategies to establish priorities and approve grants for the
economic development of its region, giving due consideration
to other Federal, State, and local planning and development
activities in the region;
``(3) not later than one year after the date of the
enactment of this section, and after taking into account
State plans developed under section 15502, establish
priorities in an economic and infrastructure development plan
for its region, including 5-year regional outcome targets;
``(4)(A) enhance the capacity of, and provide support for,
local development districts in its region; or
``(B) if no local development district exists in an area in
a participating State in the region, foster the creation of a
local development district;
``(5) encourage private investment in industrial,
commercial, and other economic development projects in its
region;
``(6) cooperate with and assist State governments with the
preparation of economic and infrastructure development plans
and programs for participating States;
``(7) formulate and recommend to the Governors and
legislatures of States that participate in the Commission
forms of interstate cooperation and, where appropriate,
international cooperation; and
[[Page H4628]]
``(8) work with State and local agencies in developing
appropriate model legislation to enhance local and regional
economic development.
``Sec. 15304. Administrative powers and expenses
``(a) Powers.--In carrying out its duties under this
subtitle, a Commission may--
``(1) hold such hearings, sit and act at such times and
places, take such testimony, receive such evidence, and print
or otherwise reproduce and distribute a description of the
proceedings and reports on actions by the Commission as the
Commission considers appropriate;
``(2) authorize, through the Federal or State Cochairperson
or any other member of the Commission designated by the
Commission, the administration of oaths if the Commission
determines that testimony should be taken or evidence
received under oath;
``(3) request from any Federal, State, or local agency such
information as may be available to or procurable by the
agency that may be of use to the Commission in carrying out
the duties of the Commission;
``(4) adopt, amend, and repeal bylaws and rules governing
the conduct of business and the performance of duties by the
Commission;
``(5) request the head of any Federal agency, State agency,
or local government to detail to the Commission such
personnel as the Commission requires to carry out its duties,
each such detail to be without loss of seniority, pay, or
other employee status;
``(6) provide for coverage of Commission employees in a
suitable retirement and employee benefit system by making
arrangements or entering into contracts with any
participating State government or otherwise providing
retirement and other employee coverage;
``(7) accept, use, and dispose of gifts or donations or
services or real, personal, tangible, or intangible property;
``(8) enter into and perform such contracts, cooperative
agreements, or other transactions as are necessary to carry
out Commission duties, including any contracts or cooperative
agreements with a department, agency, or instrumentality of
the United States, a State (including a political
subdivision, agency, or instrumentality of the State), or a
person, firm, association, or corporation; and
``(9) maintain a government relations office in the
District of Columbia and establish and maintain a central
office at such location in its region as the Commission may
select.
``(b) Federal Agency Cooperation.--A Federal agency shall--
``(1) cooperate with a Commission; and
``(2) provide, to the extent practicable, on request of the
Federal Cochairperson, appropriate assistance in carrying out
this subtitle, in accordance with applicable Federal laws
(including regulations).
``(c) Administrative Expenses.--
``(1) In general.--Subject to paragraph (2), the
administrative expenses of a Commission shall be paid--
``(A) by the Federal Government, in an amount equal to 50
percent of the administrative expenses of the Commission; and
``(B) by the States participating in the Commission, in an
amount equal to 50 percent of the administrative expenses.
``(2) Expenses of the federal cochairperson.--All expenses
of the Federal Cochairperson, including expenses of the
alternate and staff of the Federal Cochairperson, shall be
paid by the Federal Government.
``(3) State share.--
``(A) In general.--Subject to subparagraph (B), the share
of administrative expenses of a Commission to be paid by each
State of the Commission shall be determined by a unanimous
vote of the State members of the Commission.
``(B) No federal participation.--The Federal Cochairperson
shall not participate or vote in any decision under
subparagraph (A).
``(C) Delinquent states.--During any period in which a
State is more than 1 year delinquent in payment of the
State's share of administrative expenses of the Commission
under this subsection--
``(i) no assistance under this subtitle shall be provided
to the State (including assistance to a political subdivision
or a resident of the State) for any project not approved as
of the date of the commencement of the delinquency; and
``(ii) no member of the Commission from the State shall
participate or vote in any action by the Commission.
``(4) Effect on assistance.--A State's share of
administrative expenses of a Commission under this subsection
shall not be taken into consideration when determining the
amount of assistance provided to the State under this
subtitle.
``Sec. 15305. Meetings
``(a) Initial Meeting.--Each Commission shall hold an
initial meeting not later than 180 days after the date of the
enactment of this section.
``(b) Annual Meeting.--Each Commission shall conduct at
least 1 meeting each year with the Federal Cochairperson and
at least a majority of the State members present.
``(c) Additional Meetings.--Each Commission shall conduct
additional meetings at such times as it determines and may
conduct such meetings by electronic means.
``Sec. 15306. Personal financial interests
``(a) Conflicts of Interest.--
``(1) No role allowed.--Except as permitted by paragraph
(2), an individual who is a State member or alternate, or an
officer or employee of a Commission, shall not participate
personally and substantially as a member, alternate, officer,
or employee of the Commission, through decision, approval,
disapproval, recommendation, request for a ruling, or other
determination, contract, claim, controversy, or other matter
in which, to the individual's knowledge, any of the following
has a financial interest:
``(A) The individual.
``(B) The individual's spouse, minor child, or partner.
``(C) An organization (except a State or political
subdivision of a State) in which the individual is serving as
an officer, director, trustee, partner, or employee.
``(D) Any person or organization with whom the individual
is negotiating or has any arrangement concerning prospective
employment.
``(2) Exception.--Paragraph (1) shall not apply if the
individual, in advance of the proceeding, application,
request for a ruling or other determination, contract, claim
controversy, or other particular matter presenting a
potential conflict of interest--
``(A) advises the Commission of the nature and
circumstances of the matter presenting the conflict of
interest;
``(B) makes full disclosure of the financial interest; and
``(C) receives a written decision of the Commission that
the interest is not so substantial as to be considered likely
to affect the integrity of the services that the Commission
may expect from the individual.
``(3) Violation.--An individual violating this subsection
shall be fined under title 18, imprisoned for not more than 1
year, or both.
``(b) State Member or Alternate.--A State member or
alternate member may not receive any salary, or any
contribution to, or supplementation of, salary, for services
on a Commission from a source other than the State of the
member or alternate.
``(c) Detailed Employees.--
``(1) In general.--No person detailed to serve a Commission
shall receive any salary, or any contribution to, or
supplementation of, salary, for services provided to the
Commission from any source other than the State, local, or
intergovernmental department or agency from which the person
was detailed to the Commission.
``(2) Violation.--Any person that violates this subsection
shall be fined under title 18, imprisoned not more than 1
year, or both.
``(d) Federal Cochairman, Alternate to Federal Cochairman,
and Federal Officers and Employees.--The Federal Cochairman,
the alternate to the Federal Cochairman, and any Federal
officer or employee detailed to duty with the Commission are
not subject to this section but remain subject to sections
202 through 209 of title 18.
``(e) Rescission.--A Commission may declare void any
contract, loan, or grant of or by the Commission in relation
to which the Commission determines that there has been a
violation of any provision under subsection (a)(1), (b), or
(c), or any of the provisions of sections 202 through 209 of
title 18.
``Sec. 15307. Tribal participation
``Governments of Indian tribes in the region of the
Southwest Border Regional Commission shall be allowed to
participate in matters before that Commission in the same
manner and to the same extent as State agencies and
instrumentalities in the region.
``Sec. 15308. Annual report
``(a) In General.--Not later than 90 days after the last
day of each fiscal year, each Commission shall submit to the
President and Congress a report on the activities carried out
by the Commission under this subtitle in the fiscal year.
``(b) Contents.--The report shall include--
``(1) a description of the criteria used by the Commission
to designate counties under section 15702 and a list of the
counties designated in each category;
``(2) an evaluation of the progress of the Commission in
meeting the goals identified in the Commission's economic and
infrastructure development plan under section 15303 and State
economic and infrastructure development plans under section
15502; and
``(3) any policy recommendations approved by the
Commission.
``CHAPTER 3--FINANCIAL ASSISTANCE
``Sec.
``15501. Economic and infrastructure development grants.
``15502. Comprehensive economic and infrastructure development plans.
``15503. Approval of applications for assistance.
``15504. Program development criteria.
``15505. Local development districts and organizations.
``15506. Supplements to Federal grant programs.
``Sec. 15501. Economic and infrastructure development grants
``(a) In General.--A Commission may make grants to States
and local governments, Indian tribes, and public and
nonprofit organizations for projects, approved in accordance
with section 15503--
``(1) to develop the transportation infrastructure of its
region;
``(2) to develop the basic public infrastructure of its
region;
``(3) to develop the telecommunications infrastructure of
its region;
``(4) to assist its region in obtaining job skills
training, skills development and employment-related
education, entrepreneurship, technology, and business
development;
[[Page H4629]]
``(5) to provide assistance to severely economically
distressed and underdeveloped areas of its region that lack
financial resources for improving basic health care and other
public services;
``(6) to promote resource conservation, tourism,
recreation, and preservation of open space in a manner
consistent with economic development goals;
``(7) to promote the development of renewable and
alternative energy sources; and
``(8) to otherwise achieve the purposes of this subtitle.
``(b) Allocation of Funds.--A Commission shall allocate at
least 40 percent of any grant amounts provided by the
Commission in a fiscal year for projects described in
paragraphs (1) through (3) of subsection (a).
``(c) Sources of Grants.--Grant amounts may be provided
entirely from appropriations to carry out this subtitle, in
combination with amounts available under other Federal grant
programs, or from any other source.
``(d) Maximum Commission Contributions.--
``(1) In general.--Subject to paragraphs (2) and (3), the
Commission may contribute not more than 50 percent of a
project or activity cost eligible for financial assistance
under this section from amounts appropriated to carry out
this subtitle.
``(2) Distressed counties.--The maximum Commission
contribution for a project or activity to be carried out in a
county for which a distressed county designation is in effect
under section 15702 may be increased to 80 percent.
``(3) Special rule for regional projects.--A Commission may
increase to 60 percent under paragraph (1) and 90 percent
under paragraph (2) the maximum Commission contribution for a
project or activity if--
``(A) the project or activity involves 3 or more counties
or more than one State; and
``(B) the Commission determines in accordance with section
15302(a) that the project or activity will bring significant
interstate or multicounty benefits to a region.
``(e) Maintenance of Effort.--Funds may be provided by a
Commission for a program or project in a State under this
section only if the Commission determines that the level of
Federal or State financial assistance provided under a law
other than this subtitle, for the same type of program or
project in the same area of the State within region, will not
be reduced as a result of funds made available by this
subtitle.
``(f) No Relocation Assistance.--Financial assistance
authorized by this section may not be used to assist a person
or entity in relocating from one area to another.
``Sec. 15502. Comprehensive economic and infrastructure
development plans
``(a) State Plans.--In accordance with policies established
by a Commission, each State member of the Commission shall
submit a comprehensive economic and infrastructure
development plan for the area of the region represented by
the State member.
``(b) Content of Plan.--A State economic and infrastructure
development plan shall reflect the goals, objectives, and
priorities identified in any applicable economic and
infrastructure development plan developed by a Commission
under section 15303.
``(c) Consultation With Interested Local Parties.--In
carrying out the development planning process (including the
selection of programs and projects for assistance), a State
shall--
``(1) consult with local development districts, local units
of government, and local colleges and universities; and
``(2) take into consideration the goals, objectives,
priorities, and recommendations of the entities described in
paragraph (1).
``(d) Public Participation.--
``(1) In general.--A Commission and applicable State and
local development districts shall encourage and assist, to
the maximum extent practicable, public participation in the
development, revision, and implementation of all plans and
programs under this subtitle.
``(2) Guidelines.--A Commission shall develop guidelines
for providing public participation, including public
hearings.
``Sec. 15503. Approval of applications for assistance
``(a) Evaluation by State Member.--An application to a
Commission for a grant or any other assistance for a project
under this subtitle shall be made through, and evaluated for
approval by, the State member of the Commission representing
the applicant.
``(b) Certification.--An application to a Commission for a
grant or other assistance for a project under this subtitle
shall be eligible for assistance only on certification by the
State member of the Commission representing the applicant
that the application for the project--
``(1) describes ways in which the project complies with any
applicable State economic and infrastructure development
plan;
``(2) meets applicable criteria under section 15504;
``(3) adequately ensures that the project will be properly
administered, operated, and maintained; and
``(4) otherwise meets the requirements for assistance under
this subtitle.
``(c) Votes for Decisions.--On certification by a State
member of a Commission of an application for a grant or other
assistance for a specific project under this section, an
affirmative vote of the Commission under section 15302 shall
be required for approval of the application.
``Sec. 15504. Program development criteria
``In considering programs and projects to be provided
assistance by a Commission under this subtitle, and in
establishing a priority ranking of the requests for
assistance provided to the Commission, the Commission shall
follow procedures that ensure, to the maximum extent
practicable, consideration of--
``(1) the relationship of the project or class of projects
to overall regional development;
``(2) the per capita income and poverty and unemployment
and outmigration rates in an area;
``(3) the financial resources available to the applicants
for assistance seeking to carry out the project, with
emphasis on ensuring that projects are adequately financed to
maximize the probability of successful economic development;
``(4) the importance of the project or class of projects in
relation to the other projects or classes of projects that
may be in competition for the same funds;
``(5) the prospects that the project for which assistance
is sought will improve, on a continuing rather than a
temporary basis, the opportunities for employment, the
average level of income, or the economic development of the
area to be served by the project; and
``(6) the extent to which the project design provides for
detailed outcome measurements by which grant expenditures and
the results of the expenditures may be evaluated.
``Sec. 15505. Local development districts and organizations
``(a) Grants to Local Development Districts.--Subject to
the requirements of this section, a Commission may make
grants to a local development district to assist in the
payment of development planning and administrative expenses.
``(b) Conditions for Grants.--
``(1) Maximum amount.--The amount of a grant awarded under
this section may not exceed 80 percent of the administrative
and planning expenses of the local development district
receiving the grant.
``(2) Maximum period for state agencies.--In the case of a
State agency certified as a local development district, a
grant may not be awarded to the agency under this section for
more than 3 fiscal years.
``(3) Local share.--The contributions of a local
development district for administrative expenses may be in
cash or in kind, fairly evaluated, including space,
equipment, and services.
``(c) Duties of Local Development Districts.--A local
development district shall--
``(1) operate as a lead organization serving multicounty
areas in the region at the local level;
``(2) assist the Commission in carrying out outreach
activities for local governments, community development
groups, the business community, and the public;
``(3) serve as a liaison between State and local
governments, nonprofit organizations (including community-
based groups and educational institutions), the business
community, and citizens; and
``(4) assist the individuals and entities described in
paragraph (3) in identifying, assessing, and facilitating
projects and programs to promote the economic development of
the region.
``Sec. 15506. Supplements to Federal grant programs
``(a) Finding.--Congress finds that certain States and
local communities of the region, including local development
districts, may be unable to take maximum advantage of Federal
grant programs for which the States and communities are
eligible because--
``(1) they lack the economic resources to provide the
required matching share; or
``(2) there are insufficient funds available under the
applicable Federal law with respect to a project to be
carried out in the region.
``(b) Federal Grant Program Funding.--A Commission, with
the approval of the Federal Cochairperson, may use amounts
made available to carry out this subtitle--
``(1) for any part of the basic Federal contribution to
projects or activities under the Federal grant programs
authorized by Federal laws; and
``(2) to increase the Federal contribution to projects and
activities under the programs above the fixed maximum part of
the cost of the projects or activities otherwise authorized
by the applicable law.
``(c) Certification Required.--For a program, project, or
activity for which any part of the basic Federal contribution
to the project or activity under a Federal grant program is
proposed to be made under subsection (b), the Federal
contribution shall not be made until the responsible Federal
official administering the Federal law authorizing the
Federal contribution certifies that the program, project, or
activity meets the applicable requirements of the Federal law
and could be approved for Federal contribution under that law
if amounts were available under the law for the program,
project, or activity.
``(d) Limitations in Other Laws Inapplicable.--Amounts
provided pursuant to this subtitle are available without
regard to any limitations on areas eligible for assistance or
authorizations for appropriation in any other law.
``(e) Federal Share.--The Federal share of the cost of a
project or activity receiving assistance under this section
shall not exceed 80 percent.
[[Page H4630]]
``(f) Maximum Commission Contribution.--Section 15501(d),
relating to limitations on Commission contributions, shall
apply to a program, project, or activity receiving assistance
under this section.
``CHAPTER 4--ADMINISTRATIVE PROVISIONS
``subchapter i--general provisions
``Sec. 15701. Consent of States.
``Sec. 15702. Distressed counties and areas.
``Sec. 15703. Counties eligible for assistance in more than one region.
``Sec. 15704. Inspector General; records.
``Sec. 15705. Biannual meetings of representatives of all Commissions.
``subchapter ii--designation of regions
``Sec. 15731. Southeast Crescent Regional Commission.
``Sec. 15732. Southwest Border Regional Commission.
``Sec. 15733. Northern Border Regional Commission.
``subchapter iii--authorization of appropriations
``Sec. 15751. Authorization of appropriations.
``SUBCHAPTER I--GENERAL PROVISIONS
``Sec. 15701. Consent of States
``This subtitle does not require a State to engage in or
accept a program under this subtitle without its consent.
``Sec. 15702. Distressed counties and areas
``(a) Designations.--Not later than 90 days after the date
of the enactment of this section, and annually thereafter,
each Commission shall make the following designations:
``(1) Distressed counties.--The Commission shall designate
as distressed counties those counties in its region that are
the most severely and persistently economically distressed
and underdeveloped and have high rates of poverty,
unemployment, or outmigration.
``(2) Transitional counties.--The Commission shall
designate as transitional counties those counties in its
region that are economically distressed and underdeveloped or
have recently suffered high rates of poverty, unemployment,
or outmigration.
``(3) Attainment counties.--The Commission shall designate
as attainment counties, those counties in its region that are
not designated as distressed or transitional counties under
this subsection.
``(4) Isolated areas of distress.--The Commission shall
designate as isolated areas of distress, areas located in
counties designated as attainment counties under paragraph
(3) that have high rates of poverty, unemployment, or
outmigration.
``(b) Allocation.--A Commission shall allocate at least 50
percent of the appropriations made available to the
Commission to carry out this subtitle for programs and
projects designed to serve the needs of distressed counties
and isolated areas of distress in the region.
``(c) Attainment Counties.--
``(1) In general.--Except as provided in paragraph (2),
funds may not be provided under this subtitle for a project
located in a county designated as an attainment county under
subsection (a).
``(2) Exceptions.--
``(A) Administrative expenses of local development
districts.--The funding prohibition under paragraph (1) shall
not apply to grants to fund the administrative expenses of
local development districts under section 15505.
``(B) Multicounty and other projects.--A Commission may
waive the application of the funding prohibition under
paragraph (1) with respect to--
``(i) a multicounty project that includes participation by
an attainment county; and
``(ii) any other type of project, if a Commission
determines that the project could bring significant benefits
to areas of the region outside an attainment county.
``(3) Isolated areas of distress.--For a designation of an
isolated area of distress to be effective, the designation
shall be supported--
``(A) by the most recent Federal data available; or
``(B) if no recent Federal data are available, by the most
recent data available through the government of the State in
which the isolated area of distress is located.
``Sec. 15703. Counties eligible for assistance in more than
one region
``(a) Limitation.--A political subdivision of a State may
not receive assistance under this subtitle in a fiscal year
from more than one Commission.
``(b) Selection of Commission.--A political subdivision
included in the region of more than one Commission shall
select the Commission with which it will participate by
notifying, in writing, the Federal Cochairperson and the
appropriate State member of that Commission.
``(c) Changes in Selections.--The selection of a Commission
by a political subdivision shall apply in the fiscal year in
which the selection is made, and shall apply in each
subsequent fiscal year unless the political subdivision, at
least 90 days before the first day of the fiscal year,
notifies the Cochairpersons of another Commission in writing
that the political subdivision will participate in that
Commission and also transmits a copy of such notification to
the Cochairpersons of the Commission in which the political
subdivision is currently participating.
``(d) Inclusion of Appalachian Regional Commission.--In
this section, the term `Commission' includes the Appalachian
Regional Commission established under chapter 143.
``Sec. 15704. Inspector General; records
``(a) Appointment of Inspector General.--There shall be an
Inspector General for the Commissions appointed in accordance
with section 3(a) of the Inspector General Act of 1978 (5
U.S.C. App.). All of the Commissions shall be subject to a
single Inspector General.
``(b) Records of a Commission.--
``(1) In general.--A Commission shall maintain accurate and
complete records of all its transactions and activities.
``(2) Availability.--All records of a Commission shall be
available for audit and examination by the Inspector General
(including authorized representatives of the Inspector
General).
``(c) Records of Recipients of Commission Assistance.--
``(1) In general.--A recipient of funds from a Commission
under this subtitle shall maintain accurate and complete
records of transactions and activities financed with the
funds and report to the Commission on the transactions and
activities.
``(2) Availability.--All records required under paragraph
(1) shall be available for audit by the Commission and the
Inspector General (including authorized representatives of
the Commission and the Inspector General).
``(d) Annual Audit.--The Inspector General shall audit the
activities, transactions, and records of each Commission on
an annual basis.
``Sec. 15705. Biannual meetings of representatives of all
Commissions
``(a) In General.--Representatives of each Commission, the
Appalachian Regional Commission, and the Denali Commission
shall meet biannually to discuss issues confronting regions
suffering from chronic and contiguous distress and successful
strategies for promoting regional development.
``(b) Chair of Meetings.--The chair of each meeting shall
rotate among the Commissions, with the Appalachian Regional
Commission to host the first meeting.
``SUBCHAPTER II--DESIGNATION OF REGIONS
``Sec. 15731. Southeast Crescent Regional Commission
``The region of the Southeast Crescent Regional Commission
shall consist of all counties of the States of Virginia,
North Carolina, South Carolina, Georgia, Alabama,
Mississippi, and Florida not already served by the
Appalachian Regional Commission or the Delta Regional
Authority.
``Sec. 15732. Southwest Border Regional Commission
``The region of the Southwest Border Regional Commission
shall consist of the following political subdivisions:
``(1) Arizona.--The counties of Cochise, Gila, Graham,
Greenlee, La Paz, Maricopa, Pima, Pinal, Santa Cruz, and Yuma
in the State of Arizona.
``(2) California.--The counties of Imperial, Los Angeles,
Orange, Riverside, San Bernardino, San Diego, and Ventura in
the State of California.
``(3) New mexico.--The counties of Catron, Chaves, Dona
Ana, Eddy, Grant, Hidalgo, Lincoln, Luna, Otero, Sierra, and
Socorro in the State of New Mexico.
``(4) Texas.--The counties of Atascosa, Bandera, Bee,
Bexar, Brewster, Brooks, Cameron, Coke, Concho, Crane,
Crockett, Culberson, Dimmit, Duval, Ector, Edwards, El Paso,
Frio, Gillespie, Glasscock, Hidalgo, Hudspeth, Irion, Jeff
Davis, Jim Hogg, Jim Wells, Karnes, Kendall, Kenedy, Kerr,
Kimble, Kinney, Kleberg, La Salle, Live Oak, Loving, Mason,
Maverick, McMullen, Medina, Menard, Midland, Nueces, Pecos,
Presidio, Reagan, Real, Reeves, San Patricio, Shleicher,
Sutton, Starr, Sterling, Terrell, Tom Green Upton, Uvalde,
Val Verde, Ward, Webb, Willacy, Wilson, Winkler, Zapata, and
Zavala in the State of Texas.
``Sec. 15733. Northern Border Regional Commission
``The region of the Northern Border Regional Commission
shall include the following counties:
``(1) Maine.--The counties of Androscoggin, Aroostook,
Franklin, Hancock, Kennebec, Knox, Oxford, Penobscot,
Piscataquis, Somerset, Waldo, and Washington in the State of
Maine.
``(2) New hampshire.--The counties of Carroll, Coos,
Grafton, and Sullivan in the State of New Hampshire.
``(3) New york.--The counties of Cayuga, Clinton, Essex,
Franklin, Fulton, Hamilton, Herkimer, Jefferson, Lewis,
Madison, Oneida, Oswego, Seneca, and St. Lawrence in the
State of New York.
``(4) Vermont.--The counties of Caledonia, Essex, Franklin,
Grand Isle, Lamoille, and Orleans in the State of Vermont.
``SUBCHAPTER III--AUTHORIZATION OF APPROPRIATIONS
``Sec. 15751. Authorization of appropriations
``(a) In General.--There is authorized to be appropriated
to each Commission to carry out this subtitle $30,000,000 for
each of fiscal years 2008 through 2012.
``(b) Administrative Expenses.--Not more than 10 percent of
the funds made available to a Commission in a fiscal year
under this section may be used for administrative
expenses.''.
(b) Clerical Amendment to Table of Subtitles.--The table of
subtitles for chapter 40, United States Code, is amended by
striking
[[Page H4631]]
the item relating to subtitle V and inserting the following:
``V. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT........15101 ....
``VI. MISCELLANEOUS........................................17101''.....
(c) Conforming Amendments to Inspector General Act.--
Section 11 of the Inspector General Act of 1978 (5 U.S.C.
App.) is amended--
(1) in paragraph (1), by striking ``or the President of the
Export-Import Bank;'' and inserting ``the President of the
Export-Import Bank; or the Federal Cochairpersons of the
Commissions established under section 15301 of title 40,
United States Code;''; and
(2) in paragraph (2), by striking ``or the Export-Import
Bank,'' and inserting ``the Export-Import Bank, or the
Commissions established under section 15301 of title 40,
United States Code,''.
(d) Effective Date.--This section, and the amendments made
by this section, shall take effect on the first day of the
first fiscal year beginning after the date of the enactment
of this Act.
SEC. 14218. COORDINATOR FOR CHRONICALLY UNDERSERVED RURAL
AREAS.
(a) Establishment.--The Secretary of Agriculture shall
establish a Coordinator for Chronically Underserved Rural
Areas (in this section referred to as the ``Coordinator''),
to be located in the Rural Development Mission Area.
(b) Mission.--The mission of the Coordinator shall be to
direct Department of Agriculture resources to high need, high
poverty rural areas.
(c) Duties.--The Coordinator shall consult with other
offices in directing technical assistance, strategic regional
planning, at the State and local level, for developing rural
economic development that leverages the resources of State
and local governments and non-profit and community
development organizations.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary such sums as necessary to
carry out this section for fiscal years 2008 through 2012.
SEC. 14219. ELIMINATION OF STATUTE OF LIMITATIONS APPLICABLE
TO COLLECTION OF DEBT BY ADMINISTRATIVE OFFSET.
(a) Elimination.--Section 3716(e) of title 31, United
States Code, is amended to read as follows:
``(e)(1) Notwithstanding any other provision of law,
regulation, or administrative limitation, no limitation on
the period within which an offset may be initiated or taken
pursuant to this section shall be effective.
``(2) This section does not apply when a statute explicitly
prohibits using administrative offset or setoff to collect
the claim or type of claim involved.''.
(b) Application of Amendment.--The amendment made by
subsection (a) shall apply to any debt outstanding on or
after the date of the enactment of this Act.
SEC. 14220. AVAILABILITY OF EXCESS AND SURPLUS COMPUTERS IN
RURAL AREAS.
In addition to any other authority, the Secretary of
Agriculture may make available to an organization excess or
surplus computers or other technical equipment of the
Department of Agriculture for the purposes of distribution to
a city, town, or local government entity in a rural area (as
defined in section 343(a)(13)(A) of the Consolidated Farm and
Rural Development Act).
SEC. 14221. REPEAL OF SECTION 3068 OF THE WATER RESOURCES
DEVELOPMENT ACT OF 2007.
Effective upon the date of enactment of this Act, section
3068 of the Water Resources Development Act of 2007 (Public
Law 110-114; 121 Stat. 1123), and the item relating to
section 3068 in the table of contents of that Act, are
repealed.
SEC. 14222. DOMESTIC FOOD ASSISTANCE PROGRAMS.
(a) Definition of Section 32.--In this section, the term
``section 32'' means section 32 of the Act of August 24, 1935
(7 U.S.C. 612c).
(b) Transfer to Food and Nutrition Service.--
(1) In general.--Amounts made available for a fiscal year
to carry out section 32 in excess of the maximum amount
calculated under paragraph (2) shall be transferred to the
Secretary, acting through the Administrator of the Food and
Nutrition Service, to be used to carry out the Richard B.
Russell National School Lunch Act (42 U.S.C. 1751 et seq.).
(2) Maximum amount.--The maximum amount calculated under
this paragraph for a fiscal year is the sum of--
(A)(i) in the case of fiscal year 2009, $1,173,000,000;
(ii) in the case of fiscal year 2010, $1,199,000,000;
(iii) in the case of fiscal year 2011, $1,215,000,000;
(iv) in the case of fiscal year 2012, $1,231,000,000;
(v) in the case of fiscal year 2013, $1,248,000,000;
(vi) in the case of fiscal year 2014, $1,266,000,000;
(vii) in the case of fiscal year 2015, $1,284,000,000;
(viii) in the case of fiscal year 2016, $1,303,000,000;
(ix) in the case of fiscal year 2017, $1,322,000,000; and
(x) for fiscal year 2018 and each fiscal year thereafter,
the amount made available for the preceding fiscal year, as
adjusted to reflect changes for the 12-month period ending on
the preceding November 30 in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics
of the Department of Labor; and
(B) any transfers for the fiscal year from section 32 to
the Department of Commerce under the Fish and Wildlife Act of
1956 (16 U.S.C. 742a et seq.).
(c) Fresh Fruit and Vegetable Program.--Of amounts made
available to carry out section 32 under subsection (b)(2)(A),
the Secretary shall transfer for use to carry out the fresh
fruit and vegetable program under section 19 of the Richard
B. Russell National School Lunch Act the amounts specified in
subsection (i) of that section.
(d) Whole Grain Products.--Of amounts made available to
carry out section 32 under subsection (b)(2)(A), the
Secretary shall use to carry out section 4305 $4,000,000 for
fiscal year 2009.
(e) Maintenance of Funding.--The funding provided under
subsections (c) and (d) shall supplement (and not supplant)
other Federal funding (including section 32 funding) for
programs carried out under--
(1) the Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.), except for section 19 of that Act;
(2) the Emergency Food Assistance Act of 1983 (7 U.S.C.
7501 et seq.); and
(3) section 27 of the Food Stamp Act of 1977 (7 U.S.C.
2036).
SEC. 14223. TECHNICAL CORRECTION.
Section 923(1)(B) of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 2206a(1)(B)) is amended by
striking ``as defined in section 316(b) of the Higher
Education Act of 1965 (20 U.S.C. 1059c(b))'' and inserting
``as defined in section 502(a)(5) of the Higher Education Act
of 1965 (20 U.S.C. 1101a(a)(5))''.
TITLE XV--TRADE AND TAX PROVISIONS
SEC. 15001. SHORT TITLE; ETC.
(a) Short Title.--This title may be cited as the
``Heartland, Habitat, Harvest, and Horticulture Act of
2008''.
(b) Amendments to 1986 Code.--Except as otherwise expressly
provided, whenever in this title an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.
Subtitle A--Supplemental Agricultural Disaster Assistance From the
Agricultural Disaster Relief Trust Fund
SEC. 15101. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.
(a) In General.--The Trade Act of 1974 (19 U.S.C. 2101 et
seq.) is amended by adding at the end the following:
``TITLE IX--SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE
``SEC. 901. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.
``(a) Definitions.--In this section:
``(1) Actual production history yield.--The term `actual
production history yield' means the weighted average of the
actual production history for each insurable commodity or
noninsurable commodity, as calculated under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.) or the noninsured crop
disaster assistance program, respectively.
``(2) Adjusted actual production history yield.--The term
`adjusted actual production history yield' means--
``(A) in the case of an eligible producer on a farm that
has at least 4 years of actual production history yields for
an insurable commodity that are established other than
pursuant to section 508(g)(4)(B) of the Federal Crop
Insurance Act (7 U.S.C. 1508(g)(4)(B)), the actual production
history for the eligible producer without regard to any
yields established under that section;
``(B) in the case of an eligible producer on a farm that
has less than 4 years of actual production history yields for
an insurable commodity, of which 1 or more were established
pursuant to section 508(g)(4)(B) of that Act, the actual
production history for the eligible producer as calculated
without including the lowest of the yields established
pursuant to section 508(g)(4)(B) of that Act; and
``(C) in all other cases, the actual production history of
the eligible producer on a farm.
``(3) Adjusted noninsured crop disaster assistance program
yield.--The term `adjusted noninsured crop disaster
assistance program yield' means--
``(A) in the case of an eligible producer on a farm that
has at least 4 years of production history under the
noninsured crop disaster assistance program that are not
replacement yields, the noninsured crop disaster assistance
program yield without regard to any replacement yields;
``(B) in the case of an eligible producer on a farm that
less than 4 years of production history under the noninsured
crop disaster assistance program that are not replacement
yields, the noninsured crop disaster assistance program yield
as calculated without including the lowest of the replacement
yields; and
``(C) in all other cases, the production history of the
eligible producer on the farm under the noninsured crop
disaster assistance program.
``(4) Counter-cyclical program payment yield.--The term
`counter-cyclical program payment yield' means the weighted
average payment yield established under section 1102
[[Page H4632]]
of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 7912), section 1102 of the Food, Conservation, and
Energy Act of 2008, or a successor section.
``(5) Disaster county.--
``(A) In general.--The term `disaster county' means a
county included in the geographic area covered by a
qualifying natural disaster declaration.
``(B) Inclusion.--The term `disaster county' includes--
``(i) a county contiguous to a county described in
subparagraph (A); and
``(ii) any farm in which, during a calendar year, the total
loss of production of the farm relating to weather is greater
than 50 percent of the normal production of the farm, as
determined by the Secretary.
``(6) Eligible producer on a farm.--
``(A) In general.--The term `eligible producer on a farm'
means an individual or entity described in subparagraph (B)
that, as determined by the Secretary, assumes the production
and market risks associated with the agricultural production
of crops or livestock.
``(B) Description.--An individual or entity referred to in
subparagraph (A) is--
``(i) a citizen of the United States;
``(ii) a resident alien;
``(iii) a partnership of citizens of the United States; or
``(iv) a corporation, limited liability corporation, or
other farm organizational structure organized under State
law.
``(7) Farm.--
``(A) In general.--The term `farm' means, in relation to an
eligible producer on a farm, the sum of all crop acreage in
all counties that is planted or intended to be planted for
harvest by the eligible producer.
``(B) Aquaculture.--In the case of aquaculture, the term
`farm' means, in relation to an eligible producer on a farm,
all fish being produced in all counties that are intended to
be harvested for sale by the eligible producer.
``(C) Honey.--In the case of honey, the term `farm' means,
in relation to an eligible producer on a farm, all bees and
beehives in all counties that are intended to be harvested
for a honey crop by the eligible producer.
``(8) Farm-raised fish.--The term `farm-raised fish' means
any aquatic species that is propagated and reared in a
controlled environment.
``(9) Insurable commodity.--The term `insurable commodity'
means an agricultural commodity (excluding livestock) for
which the producer on a farm is eligible to obtain a policy
or plan of insurance under the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.).
``(10) Livestock.--The term `livestock' includes--
``(A) cattle (including dairy cattle);
``(B) bison;
``(C) poultry;
``(D) sheep;
``(E) swine;
``(F) horses; and
``(G) other livestock, as determined by the Secretary.
``(11) Noninsurable commodity.--The term `noninsurable
commodity' means a crop for which the eligible producers on a
farm are eligible to obtain assistance under the noninsured
crop assistance program.
``(12) Noninsured crop assistance program.--The term
`noninsured crop assistance program' means the program
carried out under section 196 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7333).
``(13) Qualifying natural disaster declaration.--The term
`qualifying natural disaster declaration' means a natural
disaster declared by the Secretary for production losses
under section 321(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1961(a)).
``(14) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``(15) Socially disadvantaged farmer or rancher.--The term
`socially disadvantaged farmer or rancher' has the meaning
given the term in section 2501(e) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)).
``(16) State.--The term `State' means--
``(A) a State;
``(B) the District of Columbia;
``(C) the Commonwealth of Puerto Rico; and
``(D) any other territory or possession of the United
States.
``(17) Trust fund.--The term `Trust Fund' means the
Agricultural Disaster Relief Trust Fund established under
section 902.
``(18) United states.--The term `United States' when used
in a geographical sense, means all of the States.
``(b) Supplemental Revenue Assistance Payments.--
``(1) In general.--The Secretary shall use such sums as are
necessary from the Trust Fund to make crop disaster
assistance payments to eligible producers on farms in
disaster counties that have incurred crop production losses
or crop quality losses, or both, during the crop year.
``(2) Amount.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall provide crop disaster assistance payments
under this section to an eligible producer on a farm in an
amount equal to 60 percent of the difference between--
``(i) the disaster assistance program guarantee, as
described in paragraph (3); and
``(ii) the total farm revenue for a farm, as described in
paragraph (4).
``(B) Limitation.--The disaster assistance program
guarantee for a crop used to calculate the payments for a
farm under subparagraph (A)(i) may not be greater than 90
percent of the sum of the expected revenue, as described in
paragraph (5) for each of the crops on a farm, as determined
by the Secretary.
``(3) Supplemental revenue assistance program guarantee.--
``(A) In general.--Except as otherwise provided in this
paragraph, the supplemental assistance program guarantee
shall be the sum obtained by adding--
``(i) for each insurable commodity on the farm, 115 percent
of the product obtained by multiplying--
``(I) a payment rate for the commodity that is equal to the
price election for the commodity elected by the eligible
producer;
``(II) the payment acres for the commodity that is equal to
the number of acres planted, or prevented from being planted,
to the commodity;
``(III) the payment yield for the commodity that is equal
to the percentage of the crop insurance yield elected by the
producer of the higher of--
``(aa) the adjusted actual production history yield; or
``(bb) the counter-cyclical program payment yield for each
crop; and
``(ii) for each noninsurable commodity on a farm, 120
percent of the product obtained by multiplying--
``(I) a payment rate for the commodity that is equal to 100
percent of the noninsured crop assistance program established
price for the commodity;
``(II) the payment acres for the commodity that is equal to
the number of acres planted, or prevented from being planted,
to the commodity; and
``(III) the payment yield for the commodity that is equal
to the higher of--
``(aa) the adjusted noninsured crop assistance program
yield guarantee; or
``(bb) the counter-cyclical program payment yield for each
crop.
``(B) Adjustment insurance guarantee.--Notwithstanding
subparagraph (A), in the case of an insurable commodity for
which a plan of insurance provides for an adjustment in the
guarantee, such as in the case of prevented planting, the
adjusted insurance guarantee shall be the basis for
determining the disaster assistance program guarantee for the
insurable commodity.
``(C) Adjusted assistance level.--Notwithstanding
subparagraph (A), in the case of a noninsurable commodity for
which the noninsured crop assistance program provides for an
adjustment in the level of assistance, such as in the case of
unharvested crops, the adjusted assistance level shall be the
basis for determining the disaster assistance program
guarantee for the noninsurable commodity.
``(D) Equitable treatment for non-yield based policies.--
The Secretary shall establish equitable treatment for non-
yield based policies and plans of insurance, such as the
Adjusted Gross Revenue Lite insurance program.
``(4) Farm revenue.--
``(A) In general.--For purposes of this subsection, the
total farm revenue for a farm, shall equal the sum obtained
by adding--
``(i) the estimated actual value for each crop produced on
a farm by using the product obtained by multiplying--
``(I) the actual crop acreage harvested by an eligible
producer on a farm;
``(II) the estimated actual yield of the crop production;
and
``(III) subject to subparagraphs (B) and (C), to the extent
practicable, the national average market price received for
the marketing year, as determined by the Secretary;
``(ii) 15 percent of amount of any direct payments made to
the producer under sections 1103 and 1303 of the Food,
Conservation, and Energy Act of 2008 or successor sections;
``(iii) the total amount of any counter-cyclical payments
made to the producer under sections 1104 and 1304 of the
Food, Conservation, and Energy Act of 2008 or successor
sections or of any average crop revenue election payments
made to the producer under section 1105 of that Act;
``(iv) the total amount of any loan deficiency payments,
marketing loan gains, and marketing certificate gains made to
the producer under subtitles B and C of the Food,
Conservation, and Energy Act of 2008 or successor subtitles;
``(v) the amount of payments for prevented planting on a
farm;
``(vi) the amount of crop insurance indemnities received by
an eligible producer on a farm for each crop on a farm;
``(vii) the amount of payments an eligible producer on a
farm received under the noninsured crop assistance program
for each crop on a farm; and
``(viii) the value of any other natural disaster assistance
payments provided by the Federal Government to an eligible
producer on a farm for each crop on a farm for the same loss
for which the eligible producer is seeking assistance.
``(B) Adjustment.--The Secretary shall adjust the average
market price received by the eligible producer on a farm--
``(i) to reflect the average quality discounts applied to
the local or regional market price of a crop or mechanically
harvested forage due to a reduction in the intrinsic
characteristics of the production resulting from adverse
weather, as determined
[[Page H4633]]
annually by the State office of the Farm Service Agency; and
``(ii) to account for a crop the value of which is reduced
due to excess moisture resulting from a disaster-related
condition.
``(C) Maximum amount for certain crops.--With respect to a
crop for which an eligible producer on a farm receives
assistance under the noninsured crop assistance program, the
national average market price received during the marketing
year shall be an amount not more than 100 percent of the
price of the crop established under the noninsured crop
assistance program.
``(5) Expected revenue.--The expected revenue for each crop
on a farm shall equal the sum obtained by adding--
``(A) the product obtained by multiplying--
``(i) the greatest of--
``(I) the adjusted actual production history yield of the
eligible producer on a farm; and
``(II) the counter-cyclical program payment yield;
``(ii) the acreage planted or prevented from being planted
for each crop; and
``(iii) 100 percent of the insurance price guarantee; and
``(B) the product obtained by multiplying--
``(i) 100 percent of the adjusted noninsured crop
assistance program yield; and
``(ii) 100 percent of the noninsured crop assistance
program price for each of the crops on a farm.
``(c) Livestock Indemnity Payments.--
``(1) Payments.--The Secretary shall use such sums as are
necessary from the Trust Fund to make livestock indemnity
payments to eligible producers on farms that have incurred
livestock death losses in excess of the normal mortality due
to adverse weather, as determined by the Secretary, during
the calendar year, including losses due to hurricanes,
floods, blizzards, disease, wildfires, extreme heat, and
extreme cold.
``(2) Payment rates.--Indemnity payments to an eligible
producer on a farm under paragraph (1) shall be made at a
rate of 75 percent of the market value of the applicable
livestock on the day before the date of death of the
livestock, as determined by the Secretary.
``(d) Livestock Forage Disaster Program.--
``(1) Definitions.--In this subsection:
``(A) Covered livestock.--
``(i) In general.--The term `covered livestock' means
livestock of an eligible livestock producer that, during the
60 days prior to the beginning date of a qualifying drought
or fire condition, as determined by the Secretary, the
eligible livestock producer--
``(I) owned;
``(II) leased;
``(III) purchased;
``(IV) entered into a contract to purchase;
``(V) is a contract grower; or
``(VI) sold or otherwise disposed of due to qualifying
drought conditions during--
``(aa) the current production year; or
``(bb) subject to paragraph (3)(B)(ii), 1 or both of the 2
production years immediately preceding the current production
year.
``(ii) Exclusion.--The term `covered livestock' does not
include livestock that were or would have been in a feedlot,
on the beginning date of the qualifying drought or fire
condition, as a part of the normal business operation of the
eligible livestock producer, as determined by the Secretary.
``(B) Drought monitor.--The term `drought monitor' means a
system for classifying drought severity according to a range
of abnormally dry to exceptional drought, as defined by the
Secretary.
``(C) Eligible livestock producer.--
``(i) In general.--The term `eligible livestock producer'
means an eligible producer on a farm that--
``(I) is an owner, cash or share lessee, or contract grower
of covered livestock that provides the pastureland or grazing
land, including cash-leased pastureland or grazing land, for
the livestock;
``(II) provides the pastureland or grazing land for covered
livestock, including cash-leased pastureland or grazing land
that is physically located in a county affected by drought;
``(III) certifies grazing loss; and
``(IV) meets all other eligibility requirements established
under this subsection.
``(ii) Exclusion.--The term `eligible livestock producer'
does not include an owner, cash or share lessee, or contract
grower of livestock that rents or leases pastureland or
grazing land owned by another person on a rate-of-gain basis.
``(D) Normal carrying capacity.--The term `normal carrying
capacity', with respect to each type of grazing land or
pastureland in a county, means the normal carrying capacity,
as determined under paragraph (3)(D)(i), that would be
expected from the grazing land or pastureland for livestock
during the normal grazing period, in the absence of a drought
or fire that diminishes the production of the grazing land or
pastureland.
``(E) Normal grazing period.--The term `normal grazing
period', with respect to a county, means the normal grazing
period during the calendar year for the county, as determined
under paragraph (3)(D)(i).
``(2) Program.--The Secretary shall use such sums as are
necessary from the Trust Fund to provide compensation for
losses to eligible livestock producers due to grazing losses
for covered livestock due to--
``(A) a drought condition, as described in paragraph (3);
or
``(B) fire, as described in paragraph (4).
``(3) Assistance for losses due to drought conditions.--
``(A) Eligible losses.--
``(i) In general.--An eligible livestock producer may
receive assistance under this subsection only for grazing
losses for covered livestock that occur on land that--
``(I) is native or improved pastureland with permanent
vegetative cover; or
``(II) is planted to a crop planted specifically for the
purpose of providing grazing for covered livestock.
``(ii) Exclusions.--An eligible livestock producer may not
receive assistance under this subsection for grazing losses
that occur on land used for haying or grazing under the
conservation reserve program established under subchapter B
of chapter 1 of subtitle D of title XII of the Food Security
Act of 1985 (16 U.S.C. 3831 et seq.).
``(B) Monthly payment rate.--
``(i) In general.--Except as provided in clause (ii), the
payment rate for assistance under this paragraph for 1 month
shall, in the case of drought, be equal to 60 percent of the
lesser of--
``(I) the monthly feed cost for all covered livestock owned
or leased by the eligible livestock producer, as determined
under subparagraph (C); or
``(II) the monthly feed cost calculated by using the normal
carrying capacity of the eligible grazing land of the
eligible livestock producer.
``(ii) Partial compensation.--In the case of an eligible
livestock producer that sold or otherwise disposed of covered
livestock due to drought conditions in 1 or both of the 2
production years immediately preceding the current production
year, as determined by the Secretary, the payment rate shall
be 80 percent of the payment rate otherwise calculated in
accordance with clause (i).
``(C) Monthly feed cost.--
``(i) In general.--The monthly feed cost shall equal the
product obtained by multiplying--
``(I) 30 days;
``(II) a payment quantity that is equal to the feed grain
equivalent, as determined under clause (ii); and
``(III) a payment rate that is equal to the corn price per
pound, as determined under clause (iii).
``(ii) Feed grain equivalent.--For purposes of clause
(i)(I), the feed grain equivalent shall equal--
``(I) in the case of an adult beef cow, 15.7 pounds of corn
per day; or
``(II) in the case of any other type of weight of
livestock, an amount determined by the Secretary that
represents the average number of pounds of corn per day
necessary to feed the livestock.
``(iii) Corn price per pound.--For purposes of clause
(i)(II), the corn price per pound shall equal the quotient
obtained by dividing--
``(I) the higher of--
``(aa) the national average corn price per bushel for the
12-month period immediately preceding March 1 of the year for
which the disaster assistance is calculated; or
``(bb) the national average corn price per bushel for the
24-month period immediately preceding that March 1; by
``(II) 56.
``(D) Normal grazing period and drought monitor
intensity.--
``(i) FSA county committee determinations.--
``(I) In general.--The Secretary shall determine the normal
carrying capacity and normal grazing period for each type of
grazing land or pastureland in the county served by the
applicable committee.
``(II) Changes.--No change to the normal carrying capacity
or normal grazing period established for a county under
subclause (I) shall be made unless the change is requested by
the appropriate State and county Farm Service Agency
committees.
``(ii) Drought intensity.--
``(I) D2.--An eligible livestock producer that owns or
leases grazing land or pastureland that is physically located
in a county that is rated by the U.S. Drought Monitor as
having a D2 (severe drought) intensity in any area of the
county for at least 8 consecutive weeks during the normal
grazing period for the county, as determined by the
Secretary, shall be eligible to receive assistance under this
paragraph in an amount equal to 1 monthly payment using the
monthly payment rate determined under subparagraph (B).
``(II) D3.--An eligible livestock producer that owns or
leases grazing land or pastureland that is physically located
in a county that is rated by the U.S. Drought Monitor as
having at least a D3 (extreme drought) intensity in any area
of the county at any time during the normal grazing period
for the county, as determined by the Secretary, shall be
eligible to receive assistance under this paragraph--
``(aa) in an amount equal to 2 monthly payments using the
monthly payment rate determined under subparagraph (B); or
``(bb) if the county is rated as having a D3 (extreme
drought) intensity in any area of the county for at least 4
weeks during the normal grazing period for the county, or is
rated as having a D4 (exceptional drought) intensity in any
area of the county at any time during the normal grazing
period, in an amount equal to 3 monthly payments using the
monthly payment rate determined under subparagraph (B).
``(4) Assistance for losses due to fire on public managed
land.--
[[Page H4634]]
``(A) In general.--An eligible livestock producer may
receive assistance under this paragraph only if--
``(i) the grazing losses occur on rangeland that is managed
by a Federal agency; and
``(ii) the eligible livestock producer is prohibited by the
Federal agency from grazing the normal permitted livestock on
the managed rangeland due to a fire.
``(B) Payment rate.--The payment rate for assistance under
this paragraph shall be equal to 50 percent of the monthly
feed cost for the total number of livestock covered by the
Federal lease of the eligible livestock producer, as
determined under paragraph (3)(C).
``(C) Payment duration.--
``(i) In general.--Subject to clause (ii), an eligible
livestock producer shall be eligible to receive assistance
under this paragraph for the period--
``(I) beginning on the date on which the Federal agency
excludes the eligible livestock producer from using the
managed rangeland for grazing; and
``(II) ending on the last day of the Federal lease of the
eligible livestock producer.
``(ii) Limitation.--An eligible livestock producer may only
receive assistance under this paragraph for losses that occur
on not more than 180 days per year.
``(5) Minimum risk management purchase requirements.--
``(A) In general.--Except as otherwise provided in this
paragraph, a livestock producer shall only be eligible for
assistance under this subsection if the livestock producer--
``(i) obtained a policy or plan of insurance under the
Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) for the
grazing land incurring the losses for which assistance is
being requested; or
``(ii) filed the required paperwork, and paid the
administrative fee by the applicable State filing deadline,
for the noninsured crop assistance program for the grazing
land incurring the losses for which assistance is being
requested.
``(B) Waiver for socially disadvantaged, limited resource,
or beginning farmer or rancher.--In the case of an eligible
livestock producer that is a socially disadvantaged farmer or
rancher or limited resource or beginning farmer or rancher,
as determined by the Secretary, the Secretary may--
``(i) waive subparagraph (A); and
``(ii) provide disaster assistance under this section at a
level that the Secretary determines to be equitable and
appropriate.
``(C) Waiver for 2008 calendar year.--In the case of an
eligible livestock producer that suffered losses on grazing
land during the 2008 calendar year but does not meet the
requirements of subparagraph (A), the Secretary shall waive
subparagraph (A) if the eligible livestock producer pays a
fee in an amount equal to the applicable noninsured crop
assistance program fee or catastrophic risk protection plan
fee required under subparagraph (A) to the Secretary not
later than 90 days after the date of enactment of this
subtitle.
``(D) Equitable relief.--
``(i) In general.--The Secretary may provide equitable
relief to an eligible livestock producer that is otherwise
ineligible or unintentionally fails to meet the requirements
of subparagraph (A) for the grazing land incurring the loss
on a case-by-case basis, as determined by the Secretary.
``(ii) 2008 calendar year.--In the case of an eligible
livestock producer that suffered losses on grazing land
during the 2008 calendar year, the Secretary shall take
special consideration to provide equitable relief in cases in
which the eligible livestock producer failed to meet the
requirements of subparagraph (A) due to the enactment of this
title after the closing date of sales periods for crop
insurance under the Federal Crop Insurance Act (7 U.S.C. 1501
et seq.) and the noninsured crop assistance program.
``(6) No duplicative payments.--
``(A) In general.--An eligible livestock producer may elect
to receive assistance for grazing or pasture feed losses due
to drought conditions under paragraph (3) or fire under
paragraph (4), but not both for the same loss, as determined
by the Secretary.
``(B) Relationship to supplemental revenue assistance.--An
eligible livestock producer that receives assistance under
this subsection may not also receive assistance for losses to
crops on the same land with the same intended use under
subsection (b).
``(e) Emergency Assistance for Livestock, Honey Bees, and
Farm-Raised Fish.--
``(1) In general.--The Secretary shall use up to
$50,000,000 per year from the Trust Fund to provide emergency
relief to eligible producers of livestock, honey bees, and
farm-raised fish to aid in the reduction of losses due to
disease, adverse weather, or other conditions, such as
blizzards and wildfires, as determined by the Secretary, that
are not covered under subsection (b), (c), or (d).
``(2) Use of funds.--Funds made available under this
subsection shall be used to reduce losses caused by feed or
water shortages, disease, or other factors as determined by
the Secretary.
``(3) Availability of funds.--Any funds made available
under this subsection shall remain available until expended.
``(f) Tree Assistance Program.--
``(1) Definitions.--In this subsection:
``(A) Eligible orchardist.--The term `eligible orchardist'
means a person that produces annual crops from trees for
commercial purposes.
``(B) Natural disaster.--The term `natural disaster' means
plant disease, insect infestation, drought, fire, freeze,
flood, earthquake, lightning, or other occurrence, as
determined by the Secretary.
``(C) Nursery tree grower.--The term `nursery tree grower'
means a person who produces nursery, ornamental, fruit, nut,
or Christmas trees for commercial sale, as determined by the
Secretary.
``(D) Tree.--The term `tree' includes a tree, bush, and
vine.
``(2) Eligibility.--
``(A) Loss.--Subject to subparagraph (B), the Secretary
shall provide assistance--
``(i) under paragraph (3) to eligible orchardists and
nursery tree growers that planted trees for commercial
purposes but lost the trees as a result of a natural
disaster, as determined by the Secretary; and
``(ii) under paragraph (3)(B) to eligible orchardists and
nursery tree growers that have a production history for
commercial purposes on planted or existing trees but lost the
trees as a result of a natural disaster, as determined by the
Secretary.
``(B) Limitation.--An eligible orchardist or nursery tree
grower shall qualify for assistance under subparagraph (A)
only if the tree mortality of the eligible orchardist or
nursery tree grower, as a result of damaging weather or
related condition, exceeds 15 percent (adjusted for normal
mortality).
``(3) Assistance.--Subject to paragraph (4), the assistance
provided by the Secretary to eligible orchardists and nursery
tree growers for losses described in paragraph (2) shall
consist of--
``(A)(i) reimbursement of 70 percent of the cost of
replanting trees lost due to a natural disaster, as
determined by the Secretary, in excess of 15 percent
mortality (adjusted for normal mortality); or
``(ii) at the option of the Secretary, sufficient seedlings
to reestablish a stand; and
``(B) reimbursement of 50 percent of the cost of pruning,
removal, and other costs incurred by an eligible orchardist
or nursery tree grower to salvage existing trees or, in the
case of tree mortality, to prepare the land to replant trees
as a result of damage or tree mortality due to a natural
disaster, as determined by the Secretary, in excess of 15
percent damage or mortality (adjusted for normal tree damage
and mortality).
``(4) Limitations on assistance.--
``(A) Definitions of legal entity and person.--In this
paragraph, the terms `legal entity' and `person' have the
meaning given those terms in section 1001(a) of the Food
Security Act of 1985 (7 U.S.C. 1308(a) (as amended by section
1603 of the Food, Conservation, and Energy Act of 2008).
``(B) Amount.--The total amount of payments received,
directly or indirectly, by a person or legal entity
(excluding a joint venture or general partnership) under this
subsection may not exceed $100,000 for any crop year, or an
equivalent value in tree seedlings.
``(C) Acres.--The total quantity of acres planted to trees
or tree seedlings for which a person or legal entity shall be
entitled to receive payments under this subsection may not
exceed 500 acres.
``(g) Risk Management Purchase Requirement.--
``(1) In general.--Except as otherwise provided in this
section, the eligible producers on a farm shall not be
eligible for assistance under this section (other than
subsection (c)) if the eligible producers on the farm--
``(A) in the case of each insurable commodity of the
eligible producers on the farm, did not obtain a policy or
plan of insurance under the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.) (excluding a crop insurance pilot
program under that Act); or
``(B) in the case of each noninsurable commodity of the
eligible producers on the farm, did not file the required
paperwork, and pay the administrative fee by the applicable
State filing deadline, for the noninsured crop assistance
program.
``(2) Minimum.--To be considered to have obtained insurance
under paragraph (1)(A), an eligible producer on a farm shall
have obtained a policy or plan of insurance with not less
than 50 percent yield coverage at 55 percent of the insurable
price for each crop grazed, planted, or intended to be
planted for harvest on a whole farm.
``(3) Waiver for socially disadvantaged, limited resource,
or beginning farmer or rancher.--With respect to eligible
producers that are socially disadvantaged farmers or ranchers
or limited resource or beginning farmers or ranchers, as
determined by the Secretary, the Secretary may--
``(A) waive paragraph (1); and
``(B) provide disaster assistance under this section at a
level that the Secretary determines to be equitable and
appropriate.
``(4) Waiver for 2008 crop year.--In the case of an
eligible producer that suffered losses in an insurable
commodity or noninsurable commodity during the 2008 crop year
but does not meet the requirements of paragraph (1), the
Secretary shall waive paragraph (1) if the eligible producer
pays a fee in an amount equal to the applicable noninsured
crop assistance program fee or catastrophic risk protection
plan fee required under paragraph (1) to the Secretary not
later than 90 days after the date of enactment of this
subtitle.
``(5) Equitable relief.--
``(A) In general.--The Secretary may provide equitable
relief to eligible producers on a farm that are otherwise
ineligible or unintentionally fail to meet the requirements
of paragraph (1) for 1 or more crops on a farm
[[Page H4635]]
on a case-by-case basis, as determined by the Secretary.
``(B) 2008 crop year.--In the case of eligible producers on
a farm that suffered losses in an insurable commodity or
noninsurable commodity during the 2008 crop year, the
Secretary shall take special consideration to provide
equitable relief in cases in which the eligible producers
failed to meet the requirements of paragraph (1) due to the
enactment of this title after the closing date of sales
periods for crop insurance under the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.) and the noninsured crop
assistance program.
``(h) Payment Limitations.--
``(1) Definitions of legal entity and person.--In this
subsection, the terms `legal entity' and `person' have the
meaning given those terms in section 1001(a) of the Food
Security Act of 1985 (7 U.S.C. 1308(a) (as amended by section
1603 of the Food, Conservation, and Energy Act of 2008).
``(2) Amount.--The total amount of disaster assistance
payments received, directly or indirectly, by a person or
legal entity (excluding a joint venture or general
partnership) under this section (excluding payments received
under subsection (f)) may not exceed $100,000 for any crop
year.
``(3) AGI limitation.--Section 1001D of the Food Security
Act of 1985 (7 U.S.C. 1308-3a) or any successor provision
shall apply with respect to assistance provided under this
section.
``(4) Direct attribution.--Subsections (e) and (f) of
section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308)
or any successor provisions relating to direct attribution
shall apply with respect to assistance provided under this
section.
``(i) Period of Effectiveness.--This section shall be
effective only for losses that are incurred as the result of
a disaster, adverse weather, or other environmental condition
that occurs on or before September 30, 2011, as determined by
the Secretary.
``(j) No Duplicative Payments.--In implementing any other
program which makes disaster assistance payments (except for
indemnities made under the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.)) and section 196 of the Federal
Agriculture Improvement and Reform Act of 1996), the
Secretary shall prevent duplicative payments with respect to
the same loss for which a person receives a payment under
subsections (b), (c), (d), (e), or (f).
``SEC. 902. AGRICULTURAL DISASTER RELIEF TRUST FUND.
``(a) Creation of Trust Fund.--There is established in the
Treasury of the United States a trust fund to be known as the
`Agricultural Disaster Relief Trust Fund', consisting of such
amounts as may be appropriated or credited to such Trust Fund
as provided in this section.
``(b) Transfer to Trust Fund.--
``(1) In general.--There are appropriated to the
Agricultural Disaster Relief Trust Fund amounts equivalent to
3.08 percent of the amounts received in the general fund of
the Treasury of the United States during fiscal years 2008
through 2011 attributable to the duties collected on articles
entered, or withdrawn from warehouse, for consumption under
the Harmonized Tariff Schedule of the United States.
``(2) Amounts based on estimates.--The amounts appropriated
under this section shall be transferred at least monthly from
the general fund of the Treasury of the United States to the
Agricultural Disaster Relief Trust Fund on the basis of
estimates made by the Secretary of the Treasury. Proper
adjustments shall be made in the amounts subsequently
transferred to the extent prior estimates were in excess of
or less than the amounts required to be transferred.
``(3) Limitation on transfers to agricultural disaster
relief trust fund.--No amount may be appropriated to the
Agricultural Disaster Relief Trust Fund on and after the date
of any expenditure from the Agricultural Disaster Relief
Trust Fund which is not permitted by this section. The
determination of whether an expenditure is so permitted shall
be made without regard to--
``(A) any provision of law which is not contained or
referenced in this title or in a revenue Act, and
``(B) whether such provision of law is a subsequently
enacted provision or directly or indirectly seeks to waive
the application of this paragraph.
``(c) Administration.--
``(1) Reports.--The Secretary of the Treasury shall be the
trustee of the Agricultural Disaster Relief Trust Fund and
shall submit an annual report to Congress each year on the
financial condition and the results of the operations of such
Trust Fund during the preceding fiscal year and on its
expected condition and operations during the 4 fiscal years
succeeding such fiscal year. Such report shall be printed as
a House document of the session of Congress to which the
report is made.
``(2) Investment.--
``(A) In general.--The Secretary of the Treasury shall
invest such portion of the Agricultural Disaster Relief Trust
Fund as is not in his judgment required to meet current
withdrawals. Such investments may be made only in interest
bearing obligations of the United States. For such purpose,
such obligations may be acquired--
``(i) on original issue at the issue price, or
``(ii) by purchase of outstanding obligations at the market
price.
``(B) Sale of obligations.--Any obligation acquired by the
Agricultural Disaster Relief Trust Fund may be sold by the
Secretary of the Treasury at the market price.
``(C) Interest on certain proceeds.--The interest on, and
the proceeds from the sale or redemption of, any obligations
held in the Agricultural Disaster Relief Trust Fund shall be
credited to and form a part of such Trust Fund.
``(d) Expenditures From Trust Fund.--Amounts in the
Agricultural Disaster Relief Trust Fund shall be available
for the purposes of making expenditures to meet those
obligations of the United States incurred under section 901
or section 531 of the Federal Crop Insurance Act (as such
sections are in effect on the date of the enactment of the
Food, Conservation, and Energy Act of 2008).
``(e) Authority To Borrow.--
``(1) In general.--There are authorized to be appropriated,
and are appropriated, to the Agricultural Disaster Relief
Trust Fund, as repayable advances, such sums as may be
necessary to carry out the purposes of such Trust Fund.
``(2) Repayment of advances.--
``(A) In general.--Advances made to the Agricultural
Disaster Relief Trust Fund shall be repaid, and interest on
such advances shall be paid, to the general fund of the
Treasury when the Secretary determines that moneys are
available for such purposes in such Trust Fund.
``(B) Rate of interest.--Interest on advances made pursuant
to this subsection shall be--
``(i) at a rate determined by the Secretary of the Treasury
(as of the close of the calendar month preceding the month in
which the advance is made) to be equal to the current average
market yield on outstanding marketable obligations of the
United States with remaining periods to maturity comparable
to the anticipated period during which the advance will be
outstanding, and
``(ii) compounded annually.
``SEC. 903. JURISDICTION.
``Legislation in the Senate of the United States amending
section 901 or 902 shall be referred to the Committee on
Finance of the Senate.''.
(b) Transition.--For purposes of the 2008 crop year, the
Secretary shall carry out subsections (f)(4) and (h) of
section 901 of the Trade Act of 1974 (as added by subsection
(a)) in accordance with the terms and conditions of sections
1001 through 1001D of the Food Security Act of 1985 (16
U.S.C. 1308 et seq.), as in effect on September 30, 2007.
(c) Clerical Amendment.--The table of contents for the
Trade Act of 1974 (19 U.S.C. 2101 et seq.) is amended by
adding at the end the following:
``TITLE IX--SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE
``Sec. 901. Supplemental agricultural disaster assistance.
``Sec. 902. Agricultural Disaster Relief Trust Fund.
``Sec. 903. Jurisdiction.''.
Subtitle B--Revenue Provisions for Agriculture Programs
SEC. 15201. CUSTOMS USER FEES.
(a) In General.--Section 13031(j)(3)(A) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c(j)(3)(A)) is amended by striking ``December 27, 2014''
and inserting ``November 14, 2017''.
(b) Other Fees.--Section 13031(j)(3)(B)(i) of the
Consolidated Omnibus Budget Reconciliation Act of 1985 (19
U.S.C. 58c(j)(3)(B)(i)) is amended by striking ``December 27,
2014'' and inserting ``September 30, 2017''.
(c) Time for Remitting Certain Cobra Fees.--Notwithstanding
any other provision of law, any fees authorized under
paragraphs (1) through (8) of section 13031(a) of the
Consolidated Omnibus Budget Reconciliation Act of 1985 (19
U.S.C. 58c(a) (1) through (8)) with respect to customs
services provided on or after July 1, 2017, and before
September 20, 2017, shall be paid not later than September
25, 2017.
(d) Time for Remitting Certain Merchandise Processing
Fees.--
(1) In general.--Notwithstanding any other provision of
law, any fees authorized under paragraphs (9) and (10) of
section 13031(a) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(a) (9) and (10))
with respect to processing merchandise entered on or after
October 1, 2017, and before November 15, 2017, shall be paid
not later than September 25, 2017, in an amount equivalent to
the amount of such fees paid by the person responsible for
such fees with respect to merchandise entered on or after
October 1, 2016, and before November 15, 2016, as determined
by the Secretary of the Treasury.
(2) Reconciliation of merchandise processing fees.--Not
later than December 15, 2017, the Secretary of the Treasury
shall reconcile the fees paid pursuant to paragraph (1) with
the fees for services actually provided on or after October
1, 2017, and before November 15, 2017, and shall refund with
interest any overpayment of such fees and make proper
adjustments with respect to any underpayment of such fees. No
interest may be assessed with respect to any such
underpayment that was based on the amount of fees paid for
merchandise entered on or after October 1, 2016, and before
November 15, 2016.
SEC. 15202. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
The percentage under subparagraph (B) of section 401(1) of
the Tax Increase Prevention and Reconciliation Act of 2005 in
effect on the date of the enactment of this Act is increased
by 7.75 percentage points.
[[Page H4636]]
Subtitle C--Tax Provisions
PART I--CONSERVATION
Subpart A--Land and Species Preservation Provisions
SEC. 15301. EXCLUSION OF CONSERVATION RESERVE PROGRAM
PAYMENTS FROM SECA TAX FOR CERTAIN INDIVIDUALS.
(a) Internal Revenue Code.--Section 1402(a)(1) (defining
net earnings from self-employment) is amended by inserting
``, and including payments under section 1233(2) of the Food
Security Act of 1985 (16 U.S.C. 3833(2)) to individuals
receiving benefits under section 202 or 223 of the Social
Security Act'' after ``crop shares''.
(b) Social Security Act.--Section 211(a)(1) of the Social
Security Act is amended by inserting ``, and including
payments under section 1233(2) of the Food Security Act of
1985 (16 U.S.C. 3833(2)) to individuals receiving benefits
under section 202 or 223'' after ``crop shares''.
(c) Effective Date.--The amendments made by this section
shall apply to payments made after December 31, 2007.
SEC. 15302. TWO-YEAR EXTENSION OF SPECIAL RULE ENCOURAGING
CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY FOR
CONSERVATION PURPOSES.
(a) In General.--
(1) Individuals.--Section 170(b)(1)(E)(vi) (relating to
termination) is amended by striking ``December 31, 2007'' and
inserting ``December 31, 2009''.
(2) Corporations.--Section 170(b)(2)(B)(iii) (relating to
termination) is amended by striking ``December 31, 2007'' and
inserting ``December 31, 2009''.
(b) Effective Date.--The amendments made by this section
shall apply to contributions made in taxable years beginning
after December 31, 2007.
SEC. 15303. DEDUCTION FOR ENDANGERED SPECIES RECOVERY
EXPENDITURES.
(a) Deduction for Endangered Species Recovery
Expenditures.--
(1) In general.--Paragraph (1) of section 175(c) (relating
to definitions) is amended by inserting after the first
sentence the following new sentence: ``Such term shall
include expenditures paid or incurred for the purpose of
achieving site-specific management actions recommended in
recovery plans approved pursuant to the Endangered Species
Act of 1973.''.
(2) Conforming amendments.--
(A) Section 175 is amended by inserting ``, or for
endangered species recovery'' after ``prevention of erosion
of land used in farming'' each place it appears in
subsections (a) and (c).
(B) The heading of section 175 is amended by inserting ``;
ENDANGERED SPECIES RECOVERY EXPENDITURES'' before the period.
(C) The item relating to section 175 in the table of
sections for part VI of subchapter B of chapter 1 is amended
by inserting ``; endangered species recovery expenditures''
before the period.
(b) Limitations.--Paragraph (3) of section 175(c) (relating
to additional limitations) is amended--
(1) in the heading of subparagraph (A), by inserting ``or
endangered species recovery plan'' after ``conservation
plan'', and
(2) in subparagraph (A)(i), by inserting ``or the recovery
plan approved pursuant to the Endangered Species Act of
1973'' after ``Department of Agriculture''.
(c) Effective Date.--The amendments made by this section
shall apply to expenditures paid or incurred after December
31, 2008.
Subpart B--Timber Provisions
SEC. 15311. TEMPORARY REDUCTION IN RATE OF TAX ON QUALIFIED
TIMBER GAIN OF CORPORATIONS.
(a) In General.--Section 1201 (relating to alternative tax
for corporations) is amended by redesignating subsection (b)
as subsection (c) and by adding after subsection (a) the
following new subsection:
``(b) Special Rate for Qualified Timber Gains.--
``(1) In general.--If, for any taxable year ending after
the date of the enactment of the Food, Conservation, and
Energy Act of 2008 and beginning on or before the date which
is 1 year after such date, a corporation has both a net
capital gain and qualified timber gain--
``(A) subsection (a) shall apply to such corporation for
the taxable year without regard to whether the applicable tax
rate exceeds 35 percent, and
``(B) the tax computed under subsection (a)(2) shall be
equal to the sum of--
``(i) 15 percent of the least of--
``(I) qualified timber gain,
``(II) net capital gain, or
``(III) taxable income, plus
``(ii) 35 percent of the excess (if any) of taxable income
over the sum of the amounts for which a tax was determined
under subsection (a)(1) and clause (i).
``(2) Qualified timber gain.--For purposes of this section,
the term `qualified timber gain' means, with respect to any
taxpayer for any taxable year, the excess (if any) of--
``(A) the sum of the taxpayer's gains described in
subsections (a) and (b) of section 631 for such year, over
``(B) the sum of the taxpayer's losses described in such
subsections for such year.
For purposes of subparagraphs (A) and (B), only timber held
more than 15 years shall be taken into account.
``(3) Computation for taxable years in which rate first
applies or ends.--In the case of any taxable year which
includes either of the dates set forth in paragraph (1), the
qualified timber gain for such year shall not exceed the
qualified timber gain properly taken into account for--
``(A) in the case of the taxable year including the date of
the enactment of the Food, Conservation, and Energy Act of
2008, the portion of the year after such date, and
``(B) in the case of the taxable year including the date
which is 1 year after such date of enactment, the portion of
the year on or before such later date.''.
(b) Minimum Tax.--Subsection (b) of section 55 is amended
by adding at the end the following paragraph:
``(4) Maximum rate of tax on qualified timber gain of
corporations.--In the case of any taxable year to which
section 1201(b) applies, the amount determined under clause
(i) of subparagraph (B) shall not exceed the sum of--
``(A) 20 percent of so much of the taxable excess (if any)
as exceeds the qualified timber gain (or, if less, the net
capital gain), plus
``(B) 15 percent of the taxable excess in excess of the
amount on which a tax is determined under subparagraph (A).
Any term used in this paragraph which is also used in section
1201 shall have the meaning given such term by such section,
except to the extent such term is subject to adjustment under
this part.''.
(c) Conforming Amendment.--Section 857(b)(3)(A)(ii) is
amended by striking ``rate'' and inserting ``rates''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years ending after the date of
enactment.
SEC. 15312. TIMBER REIT MODERNIZATION.
(a) In General.--Section 856(c)(5) is amended by adding
after subparagraph (G) the following new subparagraph:
``(H) Treatment of timber gains.--
``(i) In general.--Gain from the sale of real property
described in paragraph (2)(D) and (3)(C) shall include gain
which is--
``(I) recognized by an election under section 631(a) from
timber owned by the real estate investment trust, the cutting
of which is provided by a taxable REIT subsidiary of the real
estate investment trust;
``(II) recognized under section 631(b); or
``(III) income which would constitute gain under subclause
(I) or (II) but for the failure to meet the 1-year holding
period requirement.
``(ii) Special rules.--
``(I) For purposes of this subtitle, cut timber, the gain
from which is recognized by a real estate investment trust
pursuant to an election under section 631(a) described in
clause (i)(I) or so much of clause (i)(III) as relates to
clause (i)(I), shall be deemed to be sold to the taxable REIT
subsidiary of the real estate investment trust on the first
day of the taxable year.
``(II) For purposes of this subtitle, income described in
this subparagraph shall not be treated as gain from the sale
of property described in section 1221(a)(1).
``(iii) Termination.--This subparagraph shall not apply to
dispositions after the termination date.''.
(b) Termination Date.--Subsection (c) of section 856 is
amended by adding at the end the following new paragraph:
``(8) Termination date.--For purposes of this subsection,
the term `termination date' means, with respect to any
taxpayer, the last day of the taxpayer's first taxable year
beginning after the date of the enactment of this paragraph
and before the date that is 1 year after such date of
enactment.''.
(c) Effective Date.--The amendments made by subsection (a)
shall apply to dispositions in taxable years beginning after
the date of the enactment of this Act.
SEC. 15313. MINERAL ROYALTY INCOME QUALIFYING INCOME FOR
TIMBER REITS.
(a) In General.--Section 856(c)(2) is amended by striking
``and'' at the end of subparagraph (G), by inserting ``and''
at the end of subparagraph (H), and by adding after
subparagraph (H) the following new subparagraph:
``(I) mineral royalty income earned in the first taxable
year beginning after the date of the enactment of this
subparagraph from real property owned by a timber real estate
investment trust and held, or once held, in connection with
the trade or business of producing timber by such real estate
investment trust;''.
(b) Timber Real Estate Investment Trust.--Section
856(c)(5), as amended by this Act, is amended by adding after
subparagraph (H) the following new subparagraph:
``(I) Timber real estate investment trust.--The term
`timber real estate investment trust' means a real estate
investment trust in which more than 50 percent in value of
its total assets consists of real property held in connection
with the trade or business of producing timber.''.
(c) Effective Date.--The amendments by this section shall
apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 15314. MODIFICATION OF TAXABLE REIT SUBSIDIARY ASSET
TEST FOR TIMBER REITS.
(a) In General.--Section 856(c)(4)(B)(ii) is amended by
inserting ``(in the case of a quarter which closes on or
before the termination date, 25 percent in the case of a
timber real estate investment trust)'' after ``REIT
subsidiaries''.
[[Page H4637]]
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 15315. SAFE HARBOR FOR TIMBER PROPERTY.
(a) In General.--Section 857(b)(6) (relating to income from
prohibited transactions) is amended by adding at the end the
following new subparagraph:
``(G) Special rules for sales to qualified organizations.--
``(i) In general.--In the case of the sale of a real estate
asset (as defined in section 856(c)(5)(B)) to a qualified
organization (as defined in section 170(h)(3)) exclusively
for conservation purposes (within the meaning of section
170(h)(1)(C)), subparagraph (D) shall be applied--
``(I) by substituting `2 years' for `4 years' in clause
(i), and
``(II) by substituting `2-year period' for `4-year period'
in clauses (ii) and (iii).
``(ii) Termination.--This subparagraph shall not apply to
sales after the termination date.''.
(b) Prohibited Transactions.--Section 857(b)(6)(D)(v) is
amended by inserting ``, or, in the case of a sale on or
before the termination date, a taxable REIT subsidiary''
after ``any income''.
(c) Sales That Are Not Prohibited Transactions.--Section
857(b)(6), as amended by subsection (a), is amended by adding
at the end the following new subparagraph:
``(H) Sales of property that are not a prohibited
transaction.--In the case of a sale on or before the
termination date, the sale of property which is not a
prohibited transaction through the application of
subparagraph (D) shall be considered property held for
investment or for use in a trade or business and not property
described in section 1221(a)(1) for all purposes of this
subtitle.''.
(d) Termination Date.--Section 857(b)(6), as amended by
subsections (a) and (c), is amended by adding at the end the
following new subparagraph:
``(I) Termination date.--For purposes of this paragraph,
the term `termination date' has the meaning given such term
by section 856(c)(8).''.
(e) Effective Date.--The amendments made by this section
shall apply to dispositions in taxable years beginning after
the date of the enactment of this Act.
SEC. 15316. QUALIFIED FORESTRY CONSERVATION BONDS.
(a) In General.--Part IV of subchapter A of chapter 1
(relating to credits against tax) is amended by adding at the
end the following new subpart:
``Subpart I--Qualified Tax Credit Bonds
``Sec. 54A. Credit to holders of qualified tax credit bonds.
``Sec. 54B. Qualified forestry conservation bonds.
``SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS.
``(a) Allowance of Credit.--If a taxpayer holds a qualified
tax credit bond on one or more credit allowance dates of the
bond during any taxable year, there shall be allowed as a
credit against the tax imposed by this chapter for the
taxable year an amount equal to the sum of the credits
determined under subsection (b) with respect to such dates.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance
date for a qualified tax credit bond is 25 percent of the
annual credit determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any qualified tax credit bond is the product of--
``(A) the applicable credit rate, multiplied by
``(B) the outstanding face amount of the bond.
``(3) Applicable credit rate.--For purposes of paragraph
(2), the applicable credit rate is the rate which the
Secretary estimates will permit the issuance of qualified tax
credit bonds with a specified maturity or redemption date
without discount and without interest cost to the qualified
issuer. The applicable credit rate with respect to any
qualified tax credit bond shall be determined as of the first
day on which there is a binding, written contract for the
sale or exchange of the bond.
``(4) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period
ending on a credit allowance date, the amount of the credit
determined under this subsection with respect to such credit
allowance date shall be a ratable portion of the credit
otherwise determined based on the portion of the 3-month
period during which the bond is outstanding. A similar rule
shall apply when the bond is redeemed or matures.
``(c) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this part
(other than subpart C and this subpart).
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by
paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the
credit allowable under subsection (a) for such taxable year
(determined before the application of paragraph (1) for such
succeeding taxable year).
``(d) Qualified Tax Credit Bond.--For purposes of this
section--
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means a qualified forestry conservation bond
which is part of an issue that meets the requirements of
paragraphs (2), (3), (4), (5), and (6).
``(2) Special rules relating to expenditures.--
``(A) In general.--An issue shall be treated as meeting the
requirements of this paragraph if, as of the date of
issuance, the issuer reasonably expects--
``(i) 100 percent or more of the available project proceeds
to be spent for 1 or more qualified purposes within the 3-
year period beginning on such date of issuance, and
``(ii) a binding commitment with a third party to spend at
least 10 percent of such available project proceeds will be
incurred within the 6-month period beginning on such date of
issuance.
``(B) Failure to spend required amount of bond proceeds
within 3 years.--
``(i) In general.--To the extent that less than 100 percent
of the available project proceeds of the issue are expended
by the close of the expenditure period for 1 or more
qualified purposes, the issuer shall redeem all of the
nonqualified bonds within 90 days after the end of such
period. For purposes of this paragraph, the amount of the
nonqualified bonds required to be redeemed shall be
determined in the same manner as under section 142.
``(ii) Expenditure period.--For purposes of this subpart,
the term `expenditure period' means, with respect to any
issue, the 3-year period beginning on the date of issuance.
Such term shall include any extension of such period under
clause (iii).
``(iii) Extension of period.--Upon submission of a request
prior to the expiration of the expenditure period (determined
without regard to any extension under this clause), the
Secretary may extend such period if the issuer establishes
that the failure to expend the proceeds within the original
expenditure period is due to reasonable cause and the
expenditures for qualified purposes will continue to proceed
with due diligence.
``(C) Qualified purpose.--For purposes of this paragraph,
the term `qualified purpose' means a purpose specified in
section 54B(e).
``(D) Reimbursement.--For purposes of this subtitle,
available project proceeds of an issue shall be treated as
spent for a qualified purpose if such proceeds are used to
reimburse the issuer for amounts paid for a qualified purpose
after the date that the Secretary makes an allocation of bond
limitation with respect to such issue, but only if--
``(i) prior to the payment of the original expenditure, the
issuer declared its intent to reimburse such expenditure with
the proceeds of a qualified tax credit bond,
``(ii) not later than 60 days after payment of the original
expenditure, the issuer adopts an official intent to
reimburse the original expenditure with such proceeds, and
``(iii) the reimbursement is made not later than 18 months
after the date the original expenditure is paid.
``(3) Reporting.--An issue shall be treated as meeting the
requirements of this paragraph if the issuer of qualified tax
credit bonds submits reports similar to the reports required
under section 149(e).
``(4) Special rules relating to arbitrage.--
``(A) In general.--An issue shall be treated as meeting the
requirements of this paragraph if the issuer satisfies the
requirements of section 148 with respect to the proceeds of
the issue.
``(B) Special rule for investments during expenditure
period.--An issue shall not be treated as failing to meet the
requirements of subparagraph (A) by reason of any investment
of available project proceeds during the expenditure period.
``(C) Special rule for reserve funds.--An issue shall not
be treated as failing to meet the requirements of
subparagraph (A) by reason of any fund which is expected to
be used to repay such issue if--
``(i) such fund is funded at a rate not more rapid than
equal annual installments,
``(ii) such fund is funded in a manner reasonably expected
to result in an amount not greater than an amount necessary
to repay the issue, and
``(iii) the yield on such fund is not greater than the
discount rate determined under paragraph (5)(B) with respect
to the issue.
``(5) Maturity limitation.--
``(A) In general.--An issue shall be treated as meeting the
requirements of this paragraph if the maturity of any bond
which is part of such issue does not exceed the maximum term
determined by the Secretary under subparagraph (B).
``(B) Maximum term.--During each calendar month, the
Secretary shall determine the maximum term permitted under
this paragraph for bonds issued during the following calendar
month. Such maximum term shall be the term which the
Secretary estimates will result in the present value of the
obligation to repay the principal on the bond being equal to
50 percent of the face amount of such bond. Such present
value shall be determined using as a discount rate the
average annual interest rate of tax-exempt obligations having
a term of 10 years or more which are issued during the month.
If the term as so determined is not a multiple of a whole
year, such term shall be rounded to the next highest whole
year.
[[Page H4638]]
``(6) Prohibition on financial conflicts of interest.--An
issue shall be treated as meeting the requirements of this
paragraph if the issuer certifies that--
``(A) applicable State and local law requirements governing
conflicts of interest are satisfied with respect to such
issue, and
``(B) if the Secretary prescribes additional conflicts of
interest rules governing the appropriate Members of Congress,
Federal, State, and local officials, and their spouses, such
additional rules are satisfied with respect to such issue.
``(e) Other Definitions.--For purposes of this subchapter--
``(1) Credit allowance date.--The term `credit allowance
date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term includes the last day on which the bond is
outstanding.
``(2) Bond.--The term `bond' includes any obligation.
``(3) State.--The term `State' includes the District of
Columbia and any possession of the United States.
``(4) Available project proceeds.--The term `available
project proceeds' means--
``(A) the excess of--
``(i) the proceeds from the sale of an issue, over
``(ii) the issuance costs financed by the issue (to the
extent that such costs do not exceed 2 percent of such
proceeds), and
``(B) the proceeds from any investment of the excess
described in subparagraph (A).
``(f) Credit Treated as Interest.--For purposes of this
subtitle, the credit determined under subsection (a) shall be
treated as interest which is includible in gross income.
``(g) S Corporations and Partnerships.--In the case of a
tax credit bond held by an S corporation or partnership, the
allocation of the credit allowed by this section to the
shareholders of such corporation or partners of such
partnership shall be treated as a distribution.
``(h) Bonds Held by Regulated Investment Companies and Real
Estate Investment Trusts.--If any qualified tax credit bond
is held by a regulated investment company or a real estate
investment trust, the credit determined under subsection (a)
shall be allowed to shareholders of such company or
beneficiaries of such trust (and any gross income included
under subsection (f) with respect to such credit shall be
treated as distributed to such shareholders or beneficiaries)
under procedures prescribed by the Secretary.
``(i) Credits May Be Stripped.--Under regulations
prescribed by the Secretary--
``(1) In general.--There may be a separation (including at
issuance) of the ownership of a qualified tax credit bond and
the entitlement to the credit under this section with respect
to such bond. In case of any such separation, the credit
under this section shall be allowed to the person who on the
credit allowance date holds the instrument evidencing the
entitlement to the credit and not to the holder of the bond.
``(2) Certain rules to apply.--In the case of a separation
described in paragraph (1), the rules of section 1286 shall
apply to the qualified tax credit bond as if it were a
stripped bond and to the credit under this section as if it
were a stripped coupon.
``SEC. 54B. QUALIFIED FORESTRY CONSERVATION BONDS.
``(a) Qualified Forestry Conservation Bond.--For purposes
of this subchapter, the term `qualified forestry conservation
bond' means any bond issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for one or more qualified forestry
conservation purposes,
``(2) the bond is issued by a qualified issuer, and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Limitation on Amount of Bonds Designated.--The
maximum aggregate face amount of bonds which may be
designated under subsection (a) by any issuer shall not
exceed the limitation amount allocated to such issuer under
subsection (d).
``(c) National Limitation on Amount of Bonds Designated.--
There is a national qualified forestry conservation bond
limitation of $500,000,000.
``(d) Allocations.--
``(1) In general.--The Secretary shall make allocations of
the amount of the national qualified forestry conservation
bond limitation described in subsection (c) among qualified
forestry conservation purposes in such manner as the
Secretary determines appropriate so as to ensure that all of
such limitation is allocated before the date which is 24
months after the date of the enactment of this section.
``(2) Solicitation of applications.--The Secretary shall
solicit applications for allocations of the national
qualified forestry conservation bond limitation described in
subsection (c) not later than 90 days after the date of the
enactment of this section.
``(e) Qualified Forestry Conservation Purpose.--For
purposes of this section, the term `qualified forestry
conservation purpose' means the acquisition by a State or any
political subdivision or instrumentality thereof or a
501(c)(3) organization (as defined in section 150(a)(4)) from
an unrelated person of forest and forest land that meets the
following qualifications:
``(1) Some portion of the land acquired must be adjacent to
United States Forest Service Land.
``(2) At least half of the land acquired must be
transferred to the United States Forest Service at no net
cost to the United States and not more than half of the land
acquired may either remain with or be conveyed to a State.
``(3) All of the land must be subject to a native fish
habitat conservation plan approved by the United States Fish
and Wildlife Service.
``(4) The amount of acreage acquired must be at least
40,000 acres.
``(f) Qualified Issuer.--For purposes of this section, the
term `qualified issuer' means a State or any political
subdivision or instrumentality thereof or a 501(c)(3)
organization (as defined in section 150(a)(4)).
``(g) Special Arbitrage Rule.--In the case of any qualified
forestry conservation bond issued as part of an issue,
section 54A(d)(4)(C) shall be applied to such issue without
regard to clause (i).
``(h) Election To Treat 50 Percent of Bond Allocation as
Payment of Tax.--
``(1) In general.--If--
``(A) a qualified issuer receives an allocation of any
portion of the national qualified forestry conservation bond
limitation described in subsection (c), and
``(B) the qualified issuer elects the application of this
subsection with respect to such allocation,
then the qualified issuer (without regard to whether the
issuer is subject to tax under this chapter) shall be treated
as having made a payment against the tax imposed by this
chapter, for the taxable year preceding the taxable year in
which the allocation is received, in an amount equal to 50
percent of the amount of such allocation.
``(2) Treatment of deemed payment.--
``(A) In general.--Notwithstanding any other provision of
this title, the Secretary shall not use the payment of tax
described in paragraph (1) as an offset or credit against any
tax liability of the qualified issuer but shall refund such
payment to such issuer.
``(B) No interest.--Except as provided in paragraph (3)(A),
the payment described in paragraph (1) shall not be taken
into account in determining any amount of interest under this
title.
``(3) Requirement for, and effect of, election.--
``(A) Requirement.--No election under this subsection shall
take effect unless the qualified issuer certifies to the
Secretary that any payment of tax refunded to the issuer
under this subsection will be used exclusively for 1 or more
qualified forestry conservation purposes. If the qualified
issuer fails to use any portion of such payment for such
purpose, the issuer shall be liable to the United States in
an amount equal to such portion, plus interest at the
overpayment rate under section 6621 for the period from the
date such portion was refunded to the date such amount is
paid. Any such amount shall be assessed and collected in the
same manner as tax imposed by this chapter, except that
subchapter B of chapter 63 (relating to deficiency
procedures) shall not apply in respect of such assessment or
collection.
``(B) Effect of election on allocation.--If a qualified
issuer makes the election under this subsection with respect
to any allocation--
``(i) the issuer may issue no bonds pursuant to the
allocation, and
``(ii) the Secretary may not reallocate such allocation for
any other purpose.''.
(b) Reporting.--Subsection (d) of section 6049 (relating to
returns regarding payments of interest) is amended by adding
at the end the following new paragraph:
``(9) Reporting of credit on qualified tax credit bonds.--
``(A) In general.--For purposes of subsection (a), the term
`interest' includes amounts includible in gross income under
section 54A and such amounts shall be treated as paid on the
credit allowance date (as defined in section 54A(e)(1)).
``(B) Reporting to corporations, etc.--Except as otherwise
provided in regulations, in the case of any interest
described in subparagraph (A) of this paragraph, subsection
(b)(4) of this section shall be applied without regard to
subparagraphs (A), (H), (I), (J), (K), and (L)(i).
``(C) Regulatory authority.--The Secretary may prescribe
such regulations as are necessary or appropriate to carry out
the purposes of this paragraph, including regulations which
require more frequent or more detailed reporting.''.
(c) Conforming Amendments.--
(1) Sections 54(c)(2) and 1400N(l)(3)(B) are each amended
by striking ``subpart C'' and inserting ``subparts C and I''.
(2) Section 1397E(c)(2) is amended by striking ``subpart
H'' and inserting ``subparts H and I''.
(3) Section 6401(b)(1) is amended by striking ``and H'' and
inserting ``H, and I''.
(4) The heading of subpart H of part IV of subchapter A of
chapter 1 is amended by striking ``Certain Bonds'' and
inserting ``Clean Renewable Energy Bonds''.
(5) The table of subparts for part IV of subchapter A of
chapter 1 is amended by striking the item relating to subpart
H and inserting the following new items:
[[Page H4639]]
``subpart h. nonrefundable credit to holders of clean renewable energy
bonds.
``subpart i. qualified tax credit bonds.''.
(6) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by striking ``or 6428 or 53(e)'' and
inserting ``, 53(e), 54B(h), or 6428''.
(d) Effective Dates.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
PART II--ENERGY PROVISIONS
Subpart A--Cellulosic Biofuel
SEC. 15321. CREDIT FOR PRODUCTION OF CELLULOSIC BIOFUEL.
(a) In General.--Subsection (a) of section 40 (relating to
alcohol used as fuel) is amended by striking ``plus'' at the
end of paragraph (1), by striking ``plus'' at the end of
paragraph (2), by striking the period at the end of paragraph
(3) and inserting ``, plus'', and by adding at the end the
following new paragraph:
``(4) the cellulosic biofuel producer credit.''.
(b) Cellulosic Biofuel Producer Credit.--
(1) In general.--Subsection (b) of section 40 is amended by
adding at the end the following new paragraph:
``(6) Cellulosic biofuel producer credit.--
``(A) In general.--The cellulosic biofuel producer credit
of any taxpayer is an amount equal to the applicable amount
for each gallon of qualified cellulosic biofuel production.
``(B) Applicable amount.--For purposes of subparagraph (A),
the applicable amount means $1.01, except that such amount
shall, in the case of cellulosic biofuel which is alcohol, be
reduced by the sum of--
``(i) the amount of the credit in effect for such alcohol
under subsection (b)(1) (without regard to subsection (b)(3))
at the time of the qualified cellulosic biofuel production,
plus
``(ii) in the case of ethanol, the amount of the credit in
effect under subsection (b)(4) at the time of such
production.
``(C) Qualified cellulosic biofuel production.--For
purposes of this section, the term `qualified cellulosic
biofuel production' means any cellulosic biofuel which is
produced by the taxpayer, and which during the taxable year--
``(i) is sold by the taxpayer to another person--
``(I) for use by such other person in the production of a
qualified cellulosic biofuel mixture in such other person's
trade or business (other than casual off-farm production),
``(II) for use by such other person as a fuel in a trade or
business, or
``(III) who sells such cellulosic biofuel at retail to
another person and places such cellulosic biofuel in the fuel
tank of such other person, or
``(ii) is used or sold by the taxpayer for any purpose
described in clause (i).
The qualified cellulosic biofuel production of any taxpayer
for any taxable year shall not include any alcohol which is
purchased by the taxpayer and with respect to which such
producer increases the proof of the alcohol by additional
distillation.
``(D) Qualified cellulosic biofuel mixture.--For purposes
of this paragraph, the term `qualified cellulosic biofuel
mixture' means a mixture of cellulosic biofuel and gasoline
or of cellulosic biofuel and a special fuel which--
``(i) is sold by the person producing such mixture to any
person for use as a fuel, or
``(ii) is used as a fuel by the person producing such
mixture.
``(E) Cellulosic biofuel.--For purposes of this paragraph--
``(i) In general.--The term `cellulosic biofuel' means any
liquid fuel which--
``(I) is produced from any lignocellulosic or
hemicellulosic matter that is available on a renewable or
recurring basis, and
``(II) meets the registration requirements for fuels and
fuel additives established by the Environmental Protection
Agency under section 211 of the Clean Air Act (42 U.S.C.
7545).
``(ii) Exclusion of low-proof alcohol.--Such term shall not
include any alcohol with a proof of less than 150. The
determination of the proof of any alcohol shall be made
without regard to any added denaturants.
``(F) Allocation of cellulosic biofuel producer credit to
patrons of cooperative.--Rules similar to the rules under
subsection (g)(6) shall apply for purposes of this paragraph.
``(G) Registration requirement.--No credit shall be
determined under this paragraph with respect to any taxpayer
unless such taxpayer is registered with the Secretary as a
producer of cellulosic biofuel under section 4101.
``(H) Application of paragraph.--This paragraph shall apply
with respect to qualified cellulosic biofuel production after
December 31, 2008, and before January 1, 2013.''.
(2) Termination date not to apply.--Subsection (e) of
section 40 (relating to termination) is amended--
(A) by inserting ``or subsection (b)(6)(H)'' after ``by
reason of paragraph (1)'' in paragraph (2), and
(B) by adding at the end the following new paragraph:
``(3) Exception for cellulosic biofuel producer credit.--
Paragraph (1) shall not apply to the portion of the credit
allowed under this section by reason of subsection (a)(4).''.
(3) Conforming amendments.--
(A) Paragraph (1) of section 4101(a) is amended--
(i) by striking ``and every person'' and inserting ``,
every person'', and
(ii) by inserting ``, and every person producing cellulosic
biofuel (as defined in section 40(b)(6)(E))'' after ``section
6426(b)(4)(A))''.
(B) The heading of section 40, and the item relating to
such section in the table of sections for subpart D of part
IV of subchapter A of chapter 1, are each amended by
inserting ``, etc.,'' after ``Alcohol''.
(c) Biofuel Not Used as a Fuel, etc.--
(1) In general.--Paragraph (3) of section 40(d) is amended
by redesignating subparagraph (D) as subparagraph (E) and by
inserting after subparagraph (C) the following new
subparagraph:
``(D) Cellulosic biofuel producer credit.--If--
``(i) any credit is allowed under subsection (a)(4), and
``(ii) any person does not use such fuel for a purpose
described in subsection (b)(6)(C),
then there is hereby imposed on such person a tax equal to
the applicable amount (as defined in subsection (b)(6)(B))
for each gallon of such cellulosic biofuel.''.
(2) Conforming amendments.--
(A) Subparagraph (C) of section 40(d)(3) is amended by
striking ``Producer'' in the heading and inserting ``Small
ethanol producer''.
(B) Subparagraph (E) of section 40(d)(3), as redesignated
by paragraph (1), is amended by striking ``or (C)'' and
inserting ``(C), or (D)''.
(d) Biofuel Produced in the United States.--Section 40(d)
is amended by adding at the end the following new paragraph:
``(6) Special rule for cellulosic biofuel producer
credit.--No cellulosic biofuel producer credit shall be
determined under subsection (a) with respect to any
cellulosic biofuel unless such cellulosic biofuel is produced
in the United States and used as a fuel in the United States.
For purposes of this subsection, the term `United States'
includes any possession of the United States.''.
(e) Waiver of Credit Limit for Cellulosic Biofuel
Production by Small Ethanol Producers.--Section 40(b)(4)(C)
is amended by inserting ``(determined without regard to any
qualified cellulosic biofuel production)'' after ``15,000,000
gallons''.
(f) Denial of Double Benefit.--
(1) Biodiesel.--Paragraph (1) of section 40A(d) is amended
by adding at the end the following new flush sentence:
``Such term shall not include any liquid with respect to
which a credit may be determined under section 40.''.
(2) Renewable diesel.--Paragraph (3) of section 40A(f) is
amended by adding at the end the following new flush
sentence:
``Such term shall not include any liquid with respect to
which a credit may be determined under section 40.''.
(g) Effective Date.--The amendments made by this section
shall apply to fuel produced after December 31, 2008.
SEC. 15322. COMPREHENSIVE STUDY OF BIOFUELS.
(a) Study.--The Secretary of the Treasury, in consultation
with the Secretary of Agriculture, the Secretary of Energy,
and the Administrator of the Environmental Protection Agency,
shall enter into an agreement with the National Academy of
Sciences to produce an analysis of current scientific
findings to determine--
(1) current biofuels production, as well as projections for
future production,
(2) the maximum amount of biofuels production capable in
United States forests and farmlands, including the current
quantities and character of the feedstocks and including such
information as regional forest inventories that are
commercially available, used in the production of biofuels,
(3) the domestic effects of an increase in biofuels
production levels, including the effects of such levels on--
(A) the price of fuel,
(B) the price of land in rural and suburban communities,
(C) crop acreage, forest acreage, and other land use,
(D) the environment, due to changes in crop acreage,
fertilizer use, runoff, water use, emissions from vehicles
utilizing biofuels, and other factors,
(E) the price of feed,
(F) the selling price of grain crops and forest products,
(G) exports and imports of grains and forest products,
(H) taxpayers, through cost or savings to commodity crop
payments, and
(I) the expansion of refinery capacity,
(4) the ability to convert corn ethanol plants for other
uses, such as cellulosic ethanol or biodiesel,
(5) a comparative analysis of corn ethanol versus other
biofuels and renewable energy sources, considering cost,
energy output, and ease of implementation,
(6) the impact of the tax credit established by this
subpart on the regional agricultural and silvicultural
capabilities of commercially available forest inventories,
and
(7) the need for additional scientific inquiry, and
specific areas of interest for future research.
(b) Report.--The Secretary of the Treasury shall submit an
initial report of the findings of the study required under
subsection (a) to Congress not later than 6 months after the
date of the enactment of this Act (36 months after such date
in the case of the information required by subsection
(a)(6)), and a final report not later than 12 months after
[[Page H4640]]
such date (42 months after such date in the case of the
information required by subsection (a)(6)).
Subpart B--Revenue Provisions
SEC. 15331. MODIFICATION OF ALCOHOL CREDIT.
(a) Income Tax Credit.--
(1) In general.--The table in paragraph (2) of section
40(h) is amended--
(A) by striking ``through 2010'' in the first column and
inserting ``, 2006, 2007, or 2008'',
(B) by striking the period at the end of the third row, and
(C) by adding at the end the following new row:
``2009 through 2010............. 45 cents.......... 33.33 cents.''.
(2) Exception.--Section 40(h) is amended by adding at the
end the following new paragraph:
``(3) Reduction delayed until annual production or
importation of 7,500,000,000 gallons.--
``(A) In general.--In the case of any calendar year
beginning after 2008, if the Secretary makes a determination
described in subparagraph (B) with respect to all preceding
calendar years beginning after 2007, the last row in the
table in paragraph (2) shall be applied by substituting `51
cents' for `45 cents'.
``(B) Determination.--A determination described in this
subparagraph with respect to any calendar year is a
determination, in consultation with the Administrator of the
Environmental Protection Agency, that an amount less than
7,500,000,000 gallons of ethanol (including cellulosic
ethanol) has been produced in or imported into the United
States in such year.''.
(b) Excise Tax Credit.--
(1) In general.--Subparagraph (A) of section 6426(b)(2)
(relating to alcohol fuel mixture credit) is amended by
striking ``the applicable amount is 51 cents'' and inserting
``the applicable amount is--
``(i) in the case of calendar years beginning before 2009,
51 cents, and
``(ii) in the case of calendar years beginning after 2008,
45 cents.''.
(2) Exception.--Paragraph (2) of section 6426(b) is amended
by adding at the end the following new subparagraph:
``(C) Reduction delayed until annual production or
importation of 7,500,000,000 gallons.--In the case of any
calendar year beginning after 2008, if the Secretary makes a
determination described in section 40(h)(3)(B) with respect
to all preceding calendar years beginning after 2007,
subparagraph (A)(ii) shall be applied by substituting `51
cents' for `45 cents'.''
(3) Conforming amendment.--Subparagraph (A) of section
6426(b)(2) is amended by striking ``subparagraph (B)'' and
inserting ``subparagraphs (B) and (C)''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 15332. CALCULATION OF VOLUME OF ALCOHOL FOR FUEL
CREDITS.
(a) In General.--Paragraph (4) of section 40(d) (relating
to volume of alcohol) is amended by striking ``5 percent''
and inserting ``2 percent''.
(b) Conforming Amendment for Excise Tax Credit.--Section
6426(b) (relating to alcohol fuel mixture credit) is amended
by redesignating paragraph (5) as paragraph (6) and by
inserting after paragraph (4) the following new paragraph:
``(5) Volume of alcohol.--For purposes of determining under
subsection (a) the number of gallons of alcohol with respect
to which a credit is allowable under subsection (a), the
volume of alcohol shall include the volume of any denaturant
(including gasoline) which is added under any formulas
approved by the Secretary to the extent that such denaturants
do not exceed 2 percent of the volume of such alcohol
(including denaturants).''.
(c) Effective Date.--The amendments made by this section
shall apply to fuel sold or used after December 31, 2008.
SEC. 15333. ETHANOL TARIFF EXTENSION.
Headings 9901.00.50 and 9901.00.52 of the Harmonized Tariff
Schedule of the United States are each amended in the
effective period column by striking ``1/1/2009'' and
inserting ``1/1/2011''.
SEC. 15334. LIMITATIONS ON DUTY DRAWBACK ON CERTAIN IMPORTED
ETHANOL.
(a) In General.--Section 313(p) of the Tariff Act of 1930
(19 U.S.C. 1313(p)) is amended by adding at the end the
following new paragraph:
``(5) Special rules for ethyl alcohol.--For purposes of
this subsection, any duty paid under subheading 9901.00.50 of
the Harmonized Tariff Schedule of the United States on
imports of ethyl alcohol or a mixture of ethyl alcohol may
not be refunded if the exported article upon which a drawback
claim is based does not contain ethyl alcohol or a mixture of
ethyl alcohol.''.
(b) Effective Date.--The amendment made by this section
applies with respect to--
(1) imports of ethyl alcohol or a mixture of ethyl alcohol
entered for consumption, or withdrawn from warehouse for
consumption, on or after October 1, 2008; and
(2) imports of ethyl alcohol or a mixture of ethyl alcohol
entered for consumption, or withdrawn from warehouse for
consumption, before October 1, 2008, if a duty drawback claim
is filed with respect to such imports on or after October 1,
2010.
PART III--AGRICULTURAL PROVISIONS
SEC. 15341. INCREASE IN LOAN LIMITS ON AGRICULTURAL BONDS.
(a) In General.--Subparagraph (A) of section 147(c)(2)
(relating to exception for first-time farmers) is amended by
striking ``$250,000'' and inserting ``$450,000''.
(b) Inflation Adjustment.--Section 147(c)(2) is amended by
adding at the end the following new subparagraph:
``(H) Adjustments for inflation.--In the case of any
calendar year after 2008, the dollar amount in subparagraph
(A) shall be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year, determined by
substituting `calendar year 2007' for `calendar year 1992' in
subparagraph (B) thereof.
If any amount as increased under the preceding sentence is
not a multiple of $100, such amount shall be rounded to the
nearest multiple of $100.''.
(c) Modification of Substantial Farmland Definition.--
Section 147(c)(2)(E) (defining substantial farmland) is
amended by striking ``unless'' and all that follows through
the period and inserting ``unless such parcel is smaller than
30 percent of the median size of a farm in the county in
which such parcel is located.''.
(d) Conforming Amendment.--Section 147(c)(2)(C)(i)(II) is
amended by striking ``$250,000'' and inserting ``the amount
in effect under subparagraph (A)''.
(e) Effective Date.--The amendments made by this section
shall apply to bonds issued after the date of the enactment
of this Act.
SEC. 15342. ALLOWANCE OF SECTION 1031 TREATMENT FOR EXCHANGES
INVOLVING CERTAIN MUTUAL DITCH, RESERVOIR, OR
IRRIGATION COMPANY STOCK.
(a) In General.--Section 1031 (relating to exchange of
property held for productive use or investment) is amended by
adding at the end the following new subsection:
``(i) Special Rules for Mutual Ditch, Reservoir, or
Irrigation Company Stock.--For purposes of subsection
(a)(2)(B), the term `stocks' shall not include shares in a
mutual ditch, reservoir, or irrigation company if at the time
of the exchange--
``(1) the mutual ditch, reservoir, or irrigation company is
an organization described in section 501(c)(12)(A)
(determined without regard to the percentage of its income
that is collected from its members for the purpose of meeting
losses and expenses), and
``(2) the shares in such company have been recognized by
the highest court of the State in which such company was
organized or by applicable State statute as constituting or
representing real property or an interest in real
property.''.
(b) Effective Date.--The amendment made by this section
shall apply to exchanges completed after the date of the
enactment of this Act.
SEC. 15343. AGRICULTURAL CHEMICALS SECURITY CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business related credits) is amended
by adding at the end the following new section:
``SEC. 45O. AGRICULTURAL CHEMICALS SECURITY CREDIT.
``(a) In General.--For purposes of section 38, in the case
of an eligible agricultural business, the agricultural
chemicals security credit determined under this section for
the taxable year is 30 percent of the qualified security
expenditures for the taxable year.
``(b) Facility Limitation.--The amount of the credit
determined under subsection (a) with respect to any facility
for any taxable year shall not exceed--
``(1) $100,000, reduced by
``(2) the aggregate amount of credits determined under
subsection (a) with respect to such facility for the 5 prior
taxable years.
``(c) Annual Limitation.--The amount of the credit
determined under subsection (a) with respect to any taxpayer
for any taxable year shall not exceed $2,000,000.
``(d) Qualified Chemical Security Expenditure.--For
purposes of this section, the term `qualified chemical
security expenditure' means, with respect to any eligible
agricultural business for any taxable year, any amount paid
or incurred by such business during such taxable year for--
``(1) employee security training and background checks,
``(2) limitation and prevention of access to controls of
specified agricultural chemicals stored at the facility,
``(3) tagging, locking tank valves, and chemical additives
to prevent the theft of specified agricultural chemicals or
to render such chemicals unfit for illegal use,
``(4) protection of the perimeter of specified agricultural
chemicals,
``(5) installation of security lighting, cameras, recording
equipment, and intrusion detection sensors,
``(6) implementation of measures to increase computer or
computer network security,
``(7) conducting a security vulnerability assessment,
``(8) implementing a site security plan, and
``(9) such other measures for the protection of specified
agricultural chemicals as the Secretary may identify in
regulation.
Amounts described in the preceding sentence shall be taken
into account only to the extent that such amounts are paid or
incurred for the purpose of protecting specified agricultural
chemicals.
``(e) Eligible Agricultural Business.--For purposes of this
section, the term `eligible agricultural business' means any
person in the trade or business of--
[[Page H4641]]
``(1) selling agricultural products, including specified
agricultural chemicals, at retail predominantly to farmers
and ranchers, or
``(2) manufacturing, formulating, distributing, or aerially
applying specified agricultural chemicals.
``(f) Specified Agricultural Chemical.--For purposes of
this section, the term `specified agricultural chemical'
means--
``(1) any fertilizer commonly used in agricultural
operations which is listed under--
``(A) section 302(a)(2) of the Emergency Planning and
Community Right-to-Know Act of 1986,
``(B) section 101 of part 172 of title 49, Code of Federal
Regulations, or
``(C) part 126, 127, or 154 of title 33, Code of Federal
Regulations, and
``(2) any pesticide (as defined in section 2(u) of the
Federal Insecticide, Fungicide, and Rodenticide Act),
including all active and inert ingredients thereof, which is
customarily used on crops grown for food, feed, or fiber.
``(g) Controlled Groups.--Rules similar to the rules of
paragraphs (1) and (2) of section 41(f) shall apply for
purposes of this section.
``(h) Regulations.--The Secretary may prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section, including regulations which--
``(1) provide for the proper treatment of amounts which are
paid or incurred for purpose of protecting any specified
agricultural chemical and for other purposes, and
``(2) provide for the treatment of related properties as
one facility for purposes of subsection (b).
``(i) Termination.--This section shall not apply to any
amount paid or incurred after December 31, 2012.''.
(b) Credit Allowed as Part of General Business Credit.--
Section 38(b) is amended by striking ``plus'' at the end of
paragraph (30), by striking the period at the end of
paragraph (31) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(32) in the case of an eligible agricultural business (as
defined in section 45O(e)), the agricultural chemicals
security credit determined under section 45O(a).''.
(c) Denial of Double Benefit.--Section 280C is amended by
adding at the end the following new subsection:
``(f) Credit for Security of Agricultural Chemicals.--No
deduction shall be allowed for that portion of the expenses
otherwise allowable as a deduction taken into account in
determining the credit under section 45O for the taxable year
which is equal to the amount of the credit determined for
such taxable year under section 45O(a).''.
(d) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 is amended by
adding at the end the following new item:
``Sec. 45O. Agricultural chemicals security credit.''.
(e) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred after the date of the
enactment of this Act.
SEC. 15344. 3-YEAR DEPRECIATION FOR RACE HORSES THAT ARE 2-
YEARS OLD OR YOUNGER.
(a) In General.--Clause (i) of section 168(e)(3)(A)
(relating to 3-year property) is amended to read as follows:
``(i) any race horse--
``(I) which is placed in service before January 1, 2014,
and
``(II) which is placed in service after December 31, 2013,
and which is more than 2 years old at the time such horse is
placed in service by such purchaser,''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2008.
SEC. 15345. TEMPORARY TAX RELIEF FOR KIOWA COUNTY, KANSAS AND
SURROUNDING AREA.
(a) In General.--Subject to the modifications described in
this section, the following provisions of or relating to the
Internal Revenue Code of 1986 shall apply to the Kansas
disaster area in addition to the areas to which such
provisions otherwise apply:
(1) Section 1400N(d) of such Code (relating to special
allowance for certain property).
(2) Section 1400N(e) of such Code (relating to increase in
expensing under section 179).
(3) Section 1400N(f) of such Code (relating to expensing
for certain demolition and clean-up costs).
(4) Section 1400N(k) of such Code (relating to treatment of
net operating losses attributable to storm losses).
(5) Section 1400N(n) of such Code (relating to treatment of
representations regarding income eligibility for purposes of
qualified rental project requirements).
(6) Section 1400N(o) of such Code (relating to treatment of
public utility property disaster losses).
(7) Section 1400Q of such Code (relating to special rules
for use of retirement funds).
(8) Section 1400R(a) of such Code (relating to employee
retention credit for employers).
(9) Section 1400S(b) of such Code (relating to suspension
of certain limitations on personal casualty losses).
(10) Section 405 of the Katrina Emergency Tax Relief Act of
2005 (relating to extension of replacement period for
nonrecognition of gain).
(b) Kansas Disaster Area.--For purposes of this section,
the term ``Kansas disaster area'' means an area with respect
to which a major disaster has been declared by the President
under section 401 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (FEMA-1699-DR, as in effect on
the date of the enactment of this Act) by reason of severe
storms and tornados beginning on May 4, 2007, and determined
by the President to warrant individual or individual and
public assistance from the Federal Government under such Act
with respect to damages attributable to such storms and
tornados.
(c) References to Area or Loss.--
(1) Area.--Any reference in such provisions to the Katrina
disaster area or the Gulf Opportunity Zone shall be treated
as a reference to the Kansas disaster area.
(2) Loss.--Any reference in such provisions to any loss or
damage attributable to Hurricane Katrina shall be treated as
a reference to any loss or damage attributable to the May 4,
2007, storms and tornados.
(d) References to Dates, etc.--
(1) Special allowance for certain property acquired on or
after may 5, 2007.--Section 1400N(d) of such Code--
(A) by substituting ``qualified Recovery Assistance
property'' for ``qualified Gulf Opportunity Zone property''
each place it appears,
(B) by substituting ``May 5, 2007'' for ``August 28, 2005''
each place it appears,
(C) by substituting ``December 31, 2008'' for ``December
31, 2007'' in paragraph (2)(A)(v),
(D) by substituting ``December 31, 2009'' for ``December
31, 2008'' in paragraph (2)(A)(v),
(E) by substituting ``May 4, 2007'' for ``August 27, 2005''
in paragraph (3)(A),
(F) by substituting ``January 1, 2009'' for ``January 1,
2008'' in paragraph (3)(B), and
(G) determined without regard to paragraph (6) thereof.
(2) Increase in expensing under section 179.--Section
1400N(e) of such Code, by substituting ``qualified section
179 Recovery Assistance property'' for ``qualified section
179 Gulf Opportunity Zone property'' each place it appears.
(3) Expensing for certain demolition and clean-up costs.--
Section 1400N(f) of such Code--
(A) by substituting ``qualified Recovery Assistance clean-
up cost'' for ``qualified Gulf Opportunity Zone clean-up
cost'' each place it appears, and
(B) by substituting ``beginning on May 4, 2007, and ending
on December 31, 2009'' for ``beginning on August 28, 2005,
and ending on December 31, 2007'' in paragraph (2) thereof.
(4) Treatment of net operating losses attributable to storm
losses.--Section 1400N(k) of such Code--
(A) by substituting ``qualified Recovery Assistance loss''
for ``qualified Gulf Opportunity Zone loss'' each place it
appears,
(B) by substituting ``after May 3, 2007, and before on
January 1, 2010'' for ``after August 27, 2005, and before
January 1, 2008'' each place it appears,
(C) by substituting ``May 4, 2007'' for ``August 28, 2005''
in paragraph (2)(B)(ii)(I) thereof,
(D) by substituting ``qualified Recovery Assistance
property'' for ``qualified Gulf Opportunity Zone property''
in paragraph (2)(B)(iv) thereof, and
(E) by substituting ``qualified Recovery Assistance
casualty loss'' for ``qualified Gulf Opportunity Zone
casualty loss'' each place it appears.
(5) Special rules for use of retirement funds.--Section
1400Q of such Code--
(A) by substituting ``qualified Recovery Assistance
distribution'' for ``qualified hurricane distribution'' each
place it appears,
(B) by substituting ``on or after May 4, 2007, and before
January 1, 2009'' for ``on or after August 25, 2005, and
before January 1, 2007'' in subsection (a)(4)(A)(i),
(C) by substituting ``May 4, 2007'' for ``August 28, 2005''
in subsections (a)(4)(A)(i) and (c)(3)(B),
(D) disregarding clauses (ii) and (iii) of subsection
(a)(4)(A),
(E) by substituting ``qualified storm distribution'' for
``qualified Katrina distribution'' each place it appears,
(F) by substituting ``after November 4, 2006, and before
May 5, 2007'' for ``after February 28, 2005, and before
August 29, 2005'' in subsection (b)(2)(B)(ii),
(G) by substituting ``the Kansas disaster area (as defined
in section 15345(b) of the Food, Conservation, and Energy Act
of 2008) but which was not so purchased or constructed on
account of the May 4, 2007, storms and tornados'' for ``the
Hurricane Katrina disaster area, but not so purchased or
constructed on account of Hurricane Katrina'' in subsection
(b)(2)(B)(iii),
(H) by substituting ``beginning on May 4, 2007, and ending
on the date which is 5 months after the date of the enactment
of the Heartland, Habitat, Harvest, and Horticulture Act of
2008'' for ``beginning on August 25, 2005, and ending on
February 28, 2006'' in subsection (b)(3)(A),
(I) by substituting ``qualified storm individual'' for
``qualified Hurricane Katrina individual'' each place it
appears,
(J) by substituting ``December 31, 2008'' for ``December
31, 2006'' in subsection (c)(2)(A),
(K) by substituting ``beginning on the date of the
enactment of the Food, Conservation, and Energy Act of 2008
and ending on December 31, 2008'' for ``beginning on
September 24, 2005, and ending on December 31, 2006'' in
subsection (c)(4)(A)(i),
(L) by substituting ``May 4, 2007'' for ``August 25, 2005''
in subsection (c)(4)(A)(ii), and
(M) by substituting ``January 1, 2009'' for ``January 1,
2007'' in subsection (d)(2)(A)(ii).
[[Page H4642]]
(6) Employee retention credit for employers affected by may
4 storms and tornados.--Section 1400R(a) of the Internal
Revenue Code of 1986--
(A) by substituting ``May 4, 2007'' for ``August 28, 2005''
each place it appears,
(B) by substituting ``January 1, 2008'' for ``January 1,
2006'' both places it appears, and
(C) only with respect to eligible employers who employed an
average of not more than 200 employees on business days
during the taxable year before May 4, 2007.
(7) Suspension of certain limitations on personal casualty
losses.--Section 1400S(b)(1) of the Internal Revenue Code of
1986, by substituting ``May 4, 2007'' for ``August 25,
2005''.
(8) Extension of replacement period for nonrecognition of
gain.--Section 405 of the Katrina Emergency Tax Relief Act of
2005, by substituting ``on or after May 4, 2007'' for ``on or
after August 25, 2005''.
SEC. 15346. COMPETITIVE CERTIFICATION AWARDS MODIFICATION
AUTHORITY.
(a) In General.--Section 48A (relating to qualifying
advanced coal project credit) is amended by adding at the end
the following new subsection:
``(h) Competitive Certification Awards Modification
Authority.--In implementing this section or section 48B, the
Secretary is directed to modify the terms of any competitive
certification award and any associated closing agreement
where such modification--
``(1) is consistent with the objectives of such section,
``(2) is requested by the recipient of the competitive
certification award, and
``(3) involves moving the project site to improve the
potential to capture and sequester carbon dioxide emissions,
reduce costs of transporting feedstock, and serve a broader
customer base,
unless the Secretary determines that the dollar amount of tax
credits available to the taxpayer under such section would
increase as a result of the modification or such modification
would result in such project not being originally certified.
In considering any such modification, the Secretary shall
consult with other relevant Federal agencies, including the
Department of Energy.''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act
and is applicable to all competitive certification awards
entered into under section 48A or 48B of the Internal Revenue
Code of 1986, whether such awards were issued before, on, or
after such date of enactment.
PART IV--OTHER REVENUE PROVISIONS
SEC. 15351. LIMITATION ON EXCESS FARM LOSSES OF CERTAIN
TAXPAYERS.
(a) In General.--Section 461 (relating to general rule for
taxable year of deduction) is amended by adding at the end
the following new subsection:
``(j) Limitation on Excess Farm Losses of Certain
Taxpayers.--
``(1) Limitation.--If a taxpayer other than a C corporation
receives any applicable subsidy for any taxable year, any
excess farm loss of the taxpayer for the taxable year shall
not be allowed.
``(2) Disallowed loss carried to next taxable year.--Any
loss which is disallowed under paragraph (1) shall be treated
as a deduction of the taxpayer attributable to farming
businesses in the next taxable year.
``(3) Applicable subsidy.--For purposes of this subsection,
the term `applicable subsidy' means--
``(A) any direct or counter-cyclical payment under title I
of the Food, Conservation, and Energy Act of 2008, or any
payment elected to be received in lieu of any such payment,
or
``(B) any Commodity Credit Corporation loan.
``(4) Excess farm loss.--For purposes of this subsection--
``(A) In general.--The term `excess farm loss' means the
excess of--
``(i) the aggregate deductions of the taxpayer for the
taxable year which are attributable to farming businesses of
such taxpayer (determined without regard to whether or not
such deductions are disallowed for such taxable year under
paragraph (1)), over
``(ii) the sum of--
``(I) the aggregate gross income or gain of such taxpayer
for the taxable year which is attributable to such farming
businesses, plus
``(II) the threshold amount for the taxable year.
``(B) Threshold amount.--
``(i) In general.--The term `threshold amount' means, with
respect to any taxable year, the greater of--
``(I) $300,000 ($150,000 in the case of married individuals
filing separately), or
``(II) the excess (if any) of the aggregate amounts
described in subparagraph (A)(ii)(I) for the 5-consecutive
taxable year period preceding the taxable year over the
aggregate amounts described in subparagraph (A)(i) for such
period.
``(ii) Special rules for determining aggregate amounts.--
For purposes of clause (i)(II)--
``(I) notwithstanding the disregard in subparagraph (A)(i)
of any disallowance under paragraph (1), in the case of any
loss which is carried forward under paragraph (2) from any
taxable year, such loss (or any portion thereof) shall be
taken into account for the first taxable year in which a
deduction for such loss (or portion) is not disallowed by
reason of this subsection, and
``(II) the Secretary shall prescribe rules for the
computation of the aggregate amounts described in such clause
in cases where the filing status of the taxpayer is not the
same for the taxable year and each of the taxable years in
the period described in such clause.
``(C) Farming business.--
``(i) In general.--The term `farming business' has the
meaning given such term in section 263A(e)(4).
``(ii) Certain trades and businesses included.--If, without
regard to this clause, a taxpayer is engaged in a farming
business with respect to any agricultural or horticultural
commodity--
``(I) the term `farming business' shall include any trade
or business of the taxpayer of the processing of such
commodity (without regard to whether the processing is
incidental to the growing, raising, or harvesting of such
commodity), and
``(II) if the taxpayer is a member of a cooperative to
which subchapter T applies, any trade or business of the
cooperative described in subclause (I) shall be treated as
the trade or business of the taxpayer.
``(D) Certain losses disregarded.--For purposes of
subparagraph (A)(i), there shall not be taken into account
any deduction for any loss arising by reason of fire, storm,
or other casualty, or by reason of disease or drought,
involving any farming business.
``(5) Application of subsection in case of partnerships and
s corporations.--In the case of a partnership or S
corporation--
``(A) this subsection shall be applied at the partner or
shareholder level, and
``(B) each partner's or shareholder's proportionate share
of the items of income, gain, or deduction of the partnership
or S corporation for any taxable year from farming businesses
attributable to the partnership or S corporation, and of any
applicable subsidies received by the partnership or S
corporation during the taxable year, shall be taken into
account by the partner or shareholder in applying this
subsection to the taxable year of such partner or shareholder
with or within which the taxable year of the partnership or S
corporation ends.
The Secretary may provide rules for the application of this
paragraph to any other pass-thru entity to the extent
necessary to carry out the provisions of this subsection.
``(6) Additional reporting.--The Secretary may prescribe
such additional reporting requirements as the Secretary
determines appropriate to carry out the purposes of this
subsection.
``(7) Coordination with section 469.--This subsection shall
be applied before the application of section 469.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2009.
SEC. 15352. MODIFICATION TO OPTIONAL METHOD OF COMPUTING NET
EARNINGS FROM SELF-EMPLOYMENT.
(a) Amendments to the Internal Revenue Code of 1986.--
(1) In general.--The matter following paragraph (17) of
section 1402(a) is amended--
(A) by striking ``$2,400'' each place it appears and
inserting ``the upper limit'', and
(B) by striking ``$1,600'' each place it appears and
inserting ``the lower limit''.
(2) Definitions.--Section 1402 is amended by adding at the
end the following new subsection:
``(l) Upper and Lower Limits.--For purposes of subsection
(a)--
``(1) Lower limit.--The lower limit for any taxable year is
the sum of the amounts required under section 213(d) of the
Social Security Act for a quarter of coverage in effect with
respect to each calendar quarter ending with or within such
taxable year.
``(2) Upper limit.--The upper limit for any taxable year is
the amount equal to 150 percent of the lower limit for such
taxable year.''.
(b) Amendments to the Social Security Act.--
(1) In general.--The matter following paragraph (16) of
section 211(a) of the Social Security Act is amended--
(A) by striking ``$2,400'' each place it appears and
inserting ``the upper limit'', and
(B) by striking ``$1,600'' each place it appears and
inserting ``the lower limit''.
(2) Definitions.--Section 211 of such Act is amended by
adding at the end the following new subsection:
``(k) Upper and Lower Limits.--For purposes of subsection
(a)--
``(1) The lower limit for any taxable year is the sum of
the amounts required under section 213(d) for a quarter of
coverage in effect with respect to each calendar quarter
ending with or within such taxable year.
``(2) The upper limit for any taxable year is the amount
equal to 150 percent of the lower limit for such taxable
year.''.
(3) Conforming amendment.--Section 212 of such Act is
amended--
(A) in subsection (b), by striking ``For'' and inserting
``Except as provided in subsection (c), for''; and
(B) by adding at the end the following new subsection:
``(c) For the purpose of determining average indexed
monthly earnings, average monthly wage, and quarters of
coverage in the case of any individual who elects the option
described in clause (ii) or (iv) in the matter following
section 211(a)(16) for any taxable year that does not begin
with or during a particular calendar year and end with or
during such year, the self-employment income of such
individual deemed to be derived during such taxable year
shall be allocated to the two calendar years, portions of
which are included within such taxable year, in the
[[Page H4643]]
same proportion to the total of such deemed self-employment
income as the sum of the amounts applicable under section
213(d) for the calendar quarters ending with or within each
such calendar year bears to the lower limit for such taxable
year specified in section 211(k)(1).''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 15353. INFORMATION REPORTING FOR COMMODITY CREDIT
CORPORATION TRANSACTIONS.
(a) In General.--Subpart A of part III of subchapter A of
chapter 61 (relating to information concerning persons
subject to special provisions) is amended by inserting after
section 6039I the following new section:
``SEC. 6039J. INFORMATION REPORTING WITH RESPECT TO COMMODITY
CREDIT CORPORATION TRANSACTIONS.
``(a) Requirement of Reporting.--The Commodity Credit
Corporation, through the Secretary of Agriculture, shall make
a return, according to the forms and regulations prescribed
by the Secretary of the Treasury, setting forth any market
gain realized by a taxpayer during the taxable year in
relation to the repayment of a loan issued by the Commodity
Credit Corporation, without regard to the manner in which
such loan was repaid.
``(b) Statements to Be Furnished to Persons With Respect to
Whom Information Is Required.--The Secretary of Agriculture
shall furnish to each person whose name is required to be set
forth in a return required under subsection (a) a written
statement showing the amount of market gain reported in such
return.''.
(b) Clerical Amendment.--The table of sections for subpart
A of part III of subchapter A of chapter 61 is amended by
inserting after the item relating to section 6039I the
following new item:
``Sec. 6039J. Information reporting with respect to Commodity Credit
Corporation transactions.''.
(c) Effective Date.--The amendments made by this section
shall apply to loans repaid on or after January 1, 2007.
PART V--PROTECTION OF SOCIAL SECURITY
SEC. 15361. PROTECTION OF SOCIAL SECURITY.
To ensure that the assets of the trust funds established
under section 201 of the Social Security Act (42 U.S.C. 401)
are not reduced as a result of the enactment of this Act, the
Secretary of the Treasury shall transfer annually from the
general revenues of the Federal Government to those trust
funds the following amounts:
(1) For fiscal year 2009, $5,000,000.
(2) For fiscal year 2010, $9,000,000.
(3) For fiscal year 2011, $8,000,000.
(4) For fiscal year 2012, $7,000,000.
(5) For fiscal year 2013, $8,000,000.
(6) For fiscal year 2014, $8,000,000.
(7) For fiscal year 2015, $8,000,000.
(8) For fiscal year 2016, $6,000,000.
(9) For fiscal year 2017, $7,000,000.
Subtitle D--Trade Provisions
PART I--EXTENSION OF CERTAIN TRADE BENEFITS
SEC. 15401. SHORT TITLE.
This part may be cited as the ``Haitian Hemispheric
Opportunity through Partnership Encouragement Act of 2008''
or the ``HOPE II Act''.
SEC. 15402. BENEFITS FOR APPAREL AND OTHER TEXTILE ARTICLES.
(a) Value-Added Rule.--Section 213A(b) of the Carribean
Basin Economic Recovery Act (19 U.S.C. 2703a(b)) is amended
as follows:
(1) The subsection heading is amended to read as follows:
``Apparel and Other Textile Articles''.
(2) Paragraph (1) is amended to read as follows:
``(1) Value-added rule for apparel articles.--
``(A) In general.--Apparel articles described in
subparagraph (B) of a producer or entity controlling
production that are imported directly from Haiti or the
Dominican Republic shall enter the United States free of duty
during an applicable 1-year period, subject to the
limitations set forth in subparagraphs (B) and (C), and
subject to subparagraph (D).''.
(3) Paragraph (2) is amended--
(A) in subparagraph (A)--
(i) by moving such subparagraph 2 ems to the right;
(ii) in clause (i), by striking ``subparagraph (C)'' and
inserting ``clause (iii)'';
(iii) in clause (ii), by striking ``subparagraph (C)'' and
inserting ``clause (iii)'';
(iv) in the matter following clause (ii), by striking
``subparagraph (E)(I)'' and inserting ``clause (v)(I)'';
(v) by redesignating clauses (i) and (ii) as subclauses (I)
and (II), respectively; and
(vi) by redesignating subparagraph (A) as clause (i);
(B) in subparagraph (B)--
(i) by moving such subparagraph 2 ems to the right;
(ii) by striking ``subparagraph (A)(i)'' each place it
appears and inserting ``clause (i)(I)'';
(iii) by redesignating clauses (i) and (ii) as subclauses
(I) and (II), respectively; and
(iv) by redesignating subparagraph (B) as clause (ii);
(C) in subparagraph (C)--
(i) by moving such subparagraph 2 ems to the right;
(ii) in the matter preceding clause (i), by striking
``subparagraph (A)'' and inserting ``clause (i)'';
(iii) in clause (ii), by striking ``that enters into
force'' and all that follows through ``et seq.)'' and
inserting ``that enters into force thereafter'';
(iv) by redesignating clauses (i) through (v) as subclauses
(I) through (V), respectively; and
(v) by redesignating subparagraph (C) as clause (iii);
(D) in subparagraph (D)--
(i) by moving such subparagraph 2 ems to the right;
(ii) in clause (i)--
(I) in the matter preceding subclause (I), by striking
``subparagraph (A)'' and inserting ``clause (i)'';
(II) in subclause (I), by striking ``clause (i) of
subparagraph (A)'' and inserting ``subclause (I) of clause
(i)'';
(III) in subclause (II), by striking ``clause (ii) of
subparagraph (A)'' and inserting ``subclause (II) of clause
(i)'';
(IV) by redesignating subclauses (I) and (II) as items (aa)
and (bb), respectively; and
(V) by redesignating clause (i) as subclause (I);
(iii) in clause (ii)--
(I) in the matter preceding subclause (I), by striking
``subparagraph (A)'' and inserting ``clause (i)'';
(II) in subclause (I), by striking ``clause (i) of
subparagraph (A)'' and inserting ``subclause (I) of clause
(i)'';
(III) in subclause (II), by striking ``clause (ii) of
subparagraph (A)'' and inserting ``subclause (II) of clause
(i)'';
(IV) by redesignating subclauses (I) and (II) as items (aa)
and (bb), respectively; and
(V) by redesignating clause (ii) as subclause (II);
(iv) in clause (iii)--
(I) by striking ``clause (i)(I) or (ii)(I)'' each place it
appears and inserting ``subclause (I)(aa) or (II)(aa)'';
(II) by redesignating subclauses (I) and (II) as items (aa)
and (bb), respectively; and
(III) by redesignating clause (iii) as subclause (III);
(v) by amending clause (iv) to read as follows:
``(IV) Inclusion in calculation of other articles receiving
preferential treatment.--Entries of apparel articles that
receive preferential treatment under any provision of law
other than this subparagraph or are subject to the `General'
column 1 rate of duty under the HTS are not included in the
annual aggregation under subclause (I) or (II) unless the
producer or entity controlling production elects, at the time
the annual aggregation calculation is made, to include such
entries in such aggregation.''; and
(vi) by redesignating subparagraph (D) as clause (iv);
(E) in subparagraph (E)--
(i) by moving such subparagraph 2 ems to the right;
(ii) in clause (i)--
(I) by redesignating subclauses (I) through (III) as items
(aa) through (cc), respectively; and
(II) by redesignating clause (i) as subclause (I);
(iii) in clause (ii)--
(I) by striking ``subparagraph (C)'' and inserting ``clause
(iii)''; and
(II) by redesignating clause (ii) as subclause (II); and
(iv) by redesignating subparagraph (E) as clause (v);
(F) in subparagraph (F)--
(i) by moving such subparagraph 2 ems to the right;
(ii) in clause (i)--
(I) by striking ``The Bureau of Customs and Border
Protection'' and inserting ``U.S. Customs and Border
Protection'';
(II) by striking ``subparagraphs (A) and (D)'' and
inserting ``clauses (i) and (iv)''; and
(III) by redesignating clause (i) as subclause (I);
(iii) in clause (ii)--
(I) in the matter preceding subclause (I)--
(aa) by striking ``the Bureau of Customs and Border
Protection'' and inserting ``U.S. Customs and Border
Protection'';
(bb) by striking ``subparagraph (A)'' each place it appears
and inserting ``clause (i)''; and
(cc) by striking ``subparagraph (D)'' and inserting
``clause (iv)'';
(II) in subclause (I), by striking ``clause (i) of
subparagraph (A)'' and inserting ``subclause (I) of clause
(i)'';
(III) in subclause (II), by striking ``clause (ii) of
subparagraph (A)'' and inserting ``subclause (II) of clause
(i)'';
(IV) in the matter following subclause (II), by striking
``subparagraph (E)(i)'' and inserting ``clause (v)(I)'';
(V) by redesignating subclauses (I) and (II) as items (aa)
and (bb), respectively; and
(VI) by redesignating clause (ii) as subclause (II);
(iv) in clause (iii)--
(I) in subclause (I)--
(aa) by striking ``paragraph (1)'' and inserting
``subparagraph (A)''; and
(bb) by striking ``subparagraph (A) or (D)'' and inserting
``clause (i) or (iv)'';
(II) in subclause (II), by striking ``clause (ii) of this
subparagraph'' and inserting ``subclause (II) of this
clause'';
(III) in the matter following subclause (II)--
(aa) by striking ``the Bureau of Customs and Border
Protection'' each place it appears and inserting ``U.S.
Customs and Border Protection''; and
(bb) by striking ``subclause (II)'' and inserting ``item
(bb)''; and
(IV) in item (bb)--
[[Page H4644]]
(aa) by striking ``paragraph (1)'' and inserting
``subparagraph (A)''; and
(bb) by striking ``subparagraph (A) or (D)'' and inserting
``clause (i) or (iv)''; and
(V) in the matter following item (bb), by striking
``paragraph (1)'' and inserting ``subparagraph (A)'';
(VI) by redesignating items (aa) and (bb) as subitems (AA)
and (BB), respectively;
(VII) by redesignating subclauses (I) and (II) as items
(aa) and (bb), respectively; and
(VIII) by redesignating clause (iii) as subclause (III);
and
(v) by redesignating subparagraph (F) as clause (vi);
(G) in subparagraph (G)--
(i) by moving such subparagraph 2 ems to the right;
(ii) in clause (i)--
(I) in the matter preceding subclause (I), by striking
``subparagraph (A) or (D)'' and inserting ``clause (i) or
(iv)'';
(II) in subclause (II)--
(aa) in item (dd), by striking ``under the Bipartisan Trade
Promotion Authority Act of 2002'' and inserting ``with
respect to the United States''; and
(bb) by redesignating items (aa) through (dd) as subitems
(AA) through (DD), respectively;
(III) by redesignating subclauses (I) and (II) as items
(aa) and (bb), respectively; and
(IV) by redesignating clause (i) as subclause (I);
(iii) in clause (ii)--
(I) in subclause (I), by striking ``clause (i)(I)'' and
inserting ``subclause (I)(aa)'';
(II) in subclause (II), by striking ``clause (i)(II)'' and
inserting ``subclause (I)(bb)'';
(III) by redesignating subclauses (I) and (II) as items
(aa) and (bb), respectively; and
(IV) by redesignating clause (ii) as subclause (II); and
(iv) by redesignating subparagraph (G) as clause (vii); and
(H) by striking ``(2) Apparel articles described.--'' and
inserting the following:
``(B) Apparel articles described.--''.
(4) Paragraph (3) is amended--
(A) by redesignating such paragraph as subparagraph (C) and
moving it 2 ems to the right;
(B) by striking ``paragraph (1)'' each place it appears and
inserting ``subparagraph (A)''; and
(C) in the table--
(i) by striking ``1.5 percent'' and inserting ``1.25
percent'';
(ii) by striking ``1.75 percent'' and inserting ``1.25
percent''; and
(iii) by striking ``2 percent'' and inserting ``1.25
percent''.
(5) The following is added after subparagraph (C), as
redesignated by paragraph (4)(A) of this subsection:
``(D) Other preferential treatment not affected by
quantitative limitations.--Any apparel article that qualifies
for preferential treatment under paragraph (2), (3), (4), or
(5) or any other provision of this title shall not be subject
to, or included in the calculation of, the quantitative
limitations under subparagraph (C).''.
(b) Special Rule for Woven Articles and Certain Knit
Articles.--Section 213A(b) of the Carribean Basin Economic
Recovery Act is amended by striking paragraph (4) and
inserting the following:
``(2) Special rule for woven articles and certain knit
articles.--
``(A) Special rule for articles of chapter 62 of the hts.--
``(i) General rule.--Any apparel article classifiable under
chapter 62 of the HTS that is wholly assembled, or knit-to-
shape, in Haiti from any combination of fabrics, fabric
components, components knit-to-shape, or yarns and is
imported directly from Haiti or the Dominican Republic shall
enter the United States free of duty, subject to clauses (ii)
and (iii), without regard to the source of the fabric, fabric
components, components knit-to-shape, or yarns from which the
article is made.
``(ii) Limitation.--The preferential treatment described in
clause (i) shall be extended, in the 1-year period beginning
October 1, 2008, and in each of the 9 succeeding 1-year
periods, to not more than 70,000,000 square meter equivalents
of apparel articles described in such clause.
``(iii) Other preferential treatment not affected by
quantitative limitation.--Any apparel article that qualifies
for preferential treatment under paragraph (1), (3), (4), or
(5) or subparagraph (B) of this paragraph or any other
provision of this title shall not be subject to, or included
in the calculation of, the quantitative limitation under
clause (ii).
``(B) Special rule for certain articles of chapter 61 of
the hts.--
``(i) General rule.--Any apparel article classifiable under
chapter 61 of the HTS that is wholly assembled, or knit-to-
shape, in Haiti from any combination of fabrics, fabric
components, components knit-to-shape, or yarns and is
imported directly from Haiti or the Dominican Republic shall
enter the United States free of duty, subject to clauses
(ii), (iii), and (iv), without regard to the source of the
fabric, fabric components, components knit-to-shape, or yarns
from which the article is made.
``(ii) Exclusions.--The preferential treatment described in
clause (i) shall not apply to the following:
``(I) The following apparel articles of cotton, for men or
boys, that are classifiable under subheading 6109.10.00 of
the HTS:
``(aa) All white T-shirts, with short hemmed sleeves and
hemmed bottom, with crew or round neckline or with V-neck and
with a mitered seam at the center of the V, and without
pockets, trim, or embroidery.
``(bb) All white singlets, without pockets, trim, or
embroidery.
``(cc) Other T-shirts, but not including thermal
undershirts.
``(II) T-shirts for men or boys that are classifiable under
subheading 6109.90.10.
``(III) The following apparel articles of cotton, for men
or boys, that are classifiable under subheading 6110.20.20 of
the HTS:
``(aa) Sweatshirts.
``(bb) Pullovers, other than sweaters, vests, or garments
imported as part of playsuits.
``(IV) Sweatshirts for men or boys, of man-made fibers and
containing less than 65 percent by weight of man-made fibers,
that are classifiable under subheading 6110.30.30 of the HTS.
``(iii) Limitation.--The preferential treatment described
in clause (i) shall be extended, in the 1-year period
beginning October 1, 2008, and in each of the 9 succeeding 1-
year periods, to not more than 70,000,000 square meter
equivalents of apparel articles described in such clause.
``(iv) Other preferential treatment not affected by
quantitative limitation.--Any apparel article that qualifies
for preferential treatment under paragraph (1), (3), (4), or
(5) or subparagraph (A) of this paragraph or any other
provision of this title shall not be subject to, or included
in the calculation of, the quantitative limitation under
clause (iii).''.
(c) Single Transformation Rules Not Subject to Quantitative
Limitations.--Section 213A(b) of the Caribbean Basin Economic
Recovery Act is amended by striking paragraph (5) and
inserting the following:
``(3) Apparel and other articles subject to certain
assembly rules.--
``(A) Brassieres.--Any apparel article classifiable under
subheading 6212.10 of the HTS that is wholly assembled, or
knit-to-shape, in Haiti from any combination of fabrics,
fabric components, components knit-to-shape, or yarns and is
imported directly from Haiti or the Dominican Republic shall
enter the United States free of duty, without regard to the
source of the fabric, fabric components, components knit-to-
shape, or yarns from which the article is made.
``(B) Other apparel articles.--Any of the following apparel
articles that is wholly assembled, or knit-to-shape, in Haiti
from any combination of fabrics, fabric components,
components knit-to-shape, or yarns and is imported directly
from Haiti or the Dominican Republic shall enter the United
States free of duty, without regard to the source of the
fabric, fabric components, components knit-to-shape, or yarns
from which the article is made:
``(i) Any apparel article that is of a type listed in
chapter rule 3, 4, or 5 for chapter 61 of the HTS (as such
chapter rules are contained in section A of the Annex to
Proclamation 8213 of the President of December 20, 2007) as
being excluded from the scope of such chapter rule, when such
chapter rule is applied to determine whether an apparel
article is an originating good for purposes of general note
29(n) to the HTS, except that, for purposes of this clause,
reference in such chapter rules to `6104.12.00' shall be
deemed to be a reference to `6104.19.60'.
``(ii)(I) Subject to subclause (II), any apparel article
that is of a type listed in chapter rule 3(a), 4(a), or 5(a)
for chapter 62 of the HTS, as such chapter rules are
contained in paragraph 9 of section A of the Annex to
Proclamation 8213 of the President of December 20, 2007.
``(II) Subclause (I) shall not include any apparel article
to which subparagraph (A) of this paragraph applies.
``(C) Luggage and similar items.--Any article classifiable
under subheading 4202.12, 4202.22, 4202.32 or 4202.92 of the
HTS that is wholly assembled in Haiti and is imported
directly from Haiti or the Dominican Republic shall enter the
United States free of duty, without regard to the source of
the fabric, components, or materials from which the article
is made.
``(D) Headgear.--Any article classifiable under heading
6501, 6502, or 6504 of the HTS, or under subheading 6505.90
of the HTS, that is wholly assembled, knit-to-shape, or
formed in Haiti from any combination of fabrics, fabric
components, components knit-to-shape, or yarns and is
imported directly from Haiti or the Dominican Republic shall
enter the United States free of duty, without regard to the
source of the fabric, fabric components, components knit-to-
shape, or yarns from which the article is made.
``(E) Certain sleepwear.--Any of the following apparel
articles that is wholly assembled, or knit-to-shape, in Haiti
from any combination of fabrics, fabric components,
components knit-to-shape, or yarns and is imported directly
from Haiti or the Dominican Republic shall enter the United
States free of duty, without regard to the source of the
fabric, fabric components, components knit-to-shape, or yarns
from which the article is made:
``(i) Pajama bottoms and other sleepwear for women and
girls, of cotton, that are classifiable under subheading
6208.91.30, or of man-made fibers, that are classifiable
under subheading 6208.92.00.
``(ii) Pajama bottoms and other sleepwear for girls, of
other textile materials, that are classifiable under
subheading 6208.99.20.''.
(d) Earned Import Allowance Rules.--Section 231A(b) of the
Caribbean Basin Economic Recovery Act is amended by adding at
the end the following new paragraph:
``(4) Earned import allowance rule.--
[[Page H4645]]
``(A) In general.--Apparel articles wholly assembled, or
knit-to-shape, in Haiti from any combination of fabrics,
fabric components, components knit-to-shape, or yarns and
imported directly from Haiti or the Dominican Republic shall
enter the United States free of duty, without regard to the
source of the fabric, fabric components, components knit-to-
shape, or yarns from which the articles are made, if such
apparel articles are accompanied by an earned import
allowance certificate that reflects the amount of credits
equal to the total square meter equivalents of such apparel
articles, in accordance with the program established under
subparagraph (B). For purposes of determining the quantity of
square meter equivalents under this subparagraph, the
conversion factors listed in `Correlation: U.S. Textile and
Apparel Industry Category System with the Harmonized Tariff
Schedule of the United States of America, 2008', or its
successor publications, of the United States Department of
Commerce, shall apply.
``(B) Earned import allowance program.--
``(i) Establishment.--The Secretary of Commerce shall
establish a program to provide earned import allowance
certificates to any producer or entity controlling production
for purposes of subparagraph (A), based on the elements
described in clause (ii).
``(ii) Elements.--The elements referred to in clause (i)
are the following:
``(I) One credit shall be issued to a producer or an entity
controlling production for every three square meter
equivalents of qualifying woven fabric or qualifying knit
fabric that the producer or entity controlling production can
demonstrate that it purchased for the manufacture in Haiti of
articles like or similar to any article eligible for
preferential treatment under subparagraph (A). The Secretary
of Commerce shall, if requested by a producer or entity
controlling production, create and maintain an account for
such producer or entity controlling production, into which
such credits shall be deposited.
``(II) Such producer or entity controlling production may
redeem credits issued under subclause (I) for earned import
allowance certificates reflecting such number of earned
credits as the producer or entity may request and has
available.
``(III) The Secretary of Commerce may require any textile
mill or other entity located in the United States that
exports to Haiti qualifying woven fabric or qualifying knit
fabric to submit, upon such export or upon request,
documentation, such as a Shipper's Export Declaration, to the
Secretary of Commerce--
``(aa) verifying that the qualifying woven fabric or
qualifying knit fabric was exported to a producer in Haiti or
to an entity controlling production; and
``(bb) identifying such producer or entity controlling
production, and the quantity and description of qualifying
woven fabric or qualifying knit fabric exported to such
producer or entity controlling production.
``(IV) The Secretary of Commerce may require that a
producer or entity controlling production submit
documentation to verify purchases of qualifying woven fabric
or qualifying knit fabric.
``(V) The Secretary of Commerce may make available to each
person or entity identified in documentation submitted under
subclause (III) or (IV) information contained in such
documentation that relates to the purchase of qualifying
woven fabric or qualifying knit fabric involving such person
or entity.
``(VI) The program under this subparagraph shall be
established so as to allow, to the extent feasible, the
submission, storage, retrieval, and disclosure of information
in electronic format, including information with respect to
the earned import allowance certificates required under
subparagraph (A)(i).
``(VII) The Secretary of Commerce may reconcile
discrepancies in information provided under subclause (III)
or (IV) and verify the accuracy of such information.
``(VIII) The Secretary of Commerce shall establish
procedures to carry out the program under this subparagraph
and may establish additional requirements to carry out this
subparagraph. Such additional requirements may include--
``(aa) submissions by textile mills or other entities in
the United States documenting exports of yarns wholly formed
in the United States to countries described in paragraph
(1)(B)(iii) for the manufacture of qualifying knit fabric;
and
``(bb) procedures imposed on producers or entities
controlling production to allow the Secretary of Commerce to
obtain and verify information relating to the production of
qualifying knit fabric.
``(iii) Qualifying woven fabric defined.--For purposes of
this subparagraph, the term `qualifying woven fabric' means
fabric wholly formed in the United States from yarns wholly
formed in the United States, except that--
``(I) fabric otherwise eligible as qualifying woven fabric
shall not be ineligible as qualifying woven fabric because
the fabric contains nylon filament yarn to which section
213(b)(2)(A)(vii)(IV) applies;
``(II) fabric that would otherwise be ineligible as
qualifying woven fabric because the fabric contains yarns not
wholly formed in the United States shall not be ineligible as
qualifying woven fabric if the total weight of all such yarns
is not more than 10 percent of the total weight of the
fabric; and
``(III) fabric otherwise eligible as qualifying woven
fabric shall not be ineligible as qualifying fabric because
the fabric contains yarns covered by clause (i) or (ii) of
paragraph (5)(A).
``(iv) Qualifying knit fabric defined.--For purposes of
this subparagraph, the term `qualifying knit fabric' means
fabric or knit-to-shape components wholly formed or knit-to-
shape in any country or any combination of countries
described in paragraph (1)(B)(iii), from yarns wholly formed
in the United States, except that--
``(I) fabric or knit-to-shape components otherwise eligible
as qualifying knit fabric shall not be ineligible as
qualifying knit fabric because the fabric or knit-to-shape
components contain nylon filament yarn to which section
213(b)(2)(A)(vii)(IV) applies;
``(II) fabric or knit-to-shape components that would
otherwise be ineligible as qualifying knit fabric because the
fabric or knit-to-shape components contain yarns not wholly
formed in the United States shall not be ineligible as
qualifying knit fabric if the total weight of all such yarns
is not more than 10 percent of the total weight of the fabric
or knit-to-shape components; and
``(III) fabric or knit-to-shape components otherwise
eligible as qualifying knit fabric shall not be ineligible as
qualifying knit fabric because the fabric or knit-to-shape
components contain yarns covered by clause (i) or (ii) of
paragraph (5)(A).
``(C) Review by united states government accountability
office.--The United States Government Accountability Office
shall review the program established under subparagraph (B)
annually for the purpose of evaluating the effectiveness of,
and making recommendations for improvements in, the program.
``(D) Enforcement provisions.--
``(i) Fraudulent claims of preference.--Any person who
makes a false claim for preference under the program
established under subparagraph (B) shall be subject to any
applicable civil or criminal penalty that may be imposed
under the customs laws of the United States or under title
18, United States Code.
``(ii) Penalties for other fraudulent information.--The
Secretary of Commerce may establish and impose penalties for
the submission to the Secretary of Commerce of fraudulent
information under the program established under subparagraph
(B), other than a claim described in clause (i).''.
(e) Short Supply Rules .--Section 213A(b) of the Caribbean
Basin Economic Recovery Act is amended by adding at the end
the following:
``(5) Short supply provision.--
``(A) In general.--Any apparel article that is wholly
assembled, or knit-to-shape, in Haiti from any combination of
fabrics, fabric components, components knit-to-shape, or
yarns and is imported directly from Haiti or the Dominican
Republic shall enter the United States free of duty, without
regard to the source of the fabrics, fabric components,
components knit-to-shape, or yarns from which the article is
made, if the fabrics, fabric components, components knit-to-
shape, or yarns comprising the component that determines the
tariff classification of the article are of any of the
following:
``(i) Fabrics or yarns, to the extent that apparel articles
of such fabrics or yarns would be eligible for preferential
treatment, without regard to the source of the fabrics or
yarns, under Annex 401 of the NAFTA.
``(ii) Fabrics or yarns, to the extent that such fabrics or
yarns are designated as not being available in commercial
quantities for purposes of--
``(I) section 213(b)(2)(A)(v) of this Act;
``(II) section 112(b)(5) of the African Growth and
Opportunity Act;
``(III) clause (i)(III) or (ii) of section 204(b)(3)(B) of
the Andean Trade Preference Act; or
``(IV) any other provision, relating to determining whether
a textile or apparel article is an originating good eligible
for preferential treatment, of a law that implements a free
trade agreement entered into by the United States that is in
effect at the time the claim for preferential treatment is
made.
``(B) Removal of designation of fabrics or yarns not
available in commercial quantities.--If the President
determines that--
``(i) any fabric or yarn described in clause (i) of
subparagraph (A) was determined to be eligible for
preferential treatment, or
``(ii) any fabric or yarn described in clause (ii) of
subparagraph (A) was designated as not being available in
commercial quantities,
on the basis of fraud, the President is authorized to remove
the eligibility or designation (as the case may be) of that
fabric or yarn with respect to articles entered after such
removal.''.
(f) Miscellaneous Provisions.--
(1) Relationship to other preferential programs.--Section
213A(b) of the Caribbean Basin Economic Recovery Act is
amended by adding at the end the following:
``(6) Other preferential treatment not affected.--The duty-
free treatment provided under this subsection is in addition
to any other preferential treatment under this title.''.
(2) Definitions.--Section 213A(a) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703a(a)) is amended by
adding at the end the following:
``(3) Imported directly from haiti or the dominican
republic.--Articles are `imported
[[Page H4646]]
directly from Haiti or the Dominican Republic' if--
``(A) the articles are shipped directly from Haiti or the
Dominican Republic into the United States without passing
through the territory of any intermediate country; or
``(B) the articles are shipped from Haiti or the Dominican
Republic into the United States through the territory of an
intermediate country, and--
``(i) the articles in the shipment do not enter into the
commerce of any intermediate country, and the invoices, bills
of lading, and other shipping documents specify the United
States as the final destination; or
``(ii) the invoices and other documents do not specify the
United States as the final destination, but the articles in
the shipment--
``(I) remain under the control of the customs authority in
the intermediate country;
``(II) do not enter into the commerce of the intermediate
country except for the purpose of a sale other than at
retail; and
``(III) have not been subjected to operations in the
intermediate country other than loading, unloading, or other
activities necessary to preserve the articles in good
condition.
``(4) Knit-to-shape.--A good is `knit-to-shape' if 50
percent or more of the exterior surface area of the good is
formed by major parts that have been knitted or crocheted
directly to the shape used in the good, with no consideration
being given to patch pockets, appliques, or the like. Minor
cutting, trimming, or sewing of those major parts shall not
affect the determination of whether a good is `knit-to-
shape.'
``(5) Wholly assembled.--A good is `wholly assembled' in
Haiti if all components, of which there must be at least two,
pre-existed in essentially the same condition as found in the
finished good and were combined to form the finished good in
Haiti. Minor attachments and minor embellishments (for
example, appliques, beads, spangles, embroidery, and buttons)
not appreciably affecting the identity of the good, and minor
subassemblies (for example, collars, cuffs, plackets, and
pockets), shall not affect the determination of whether a
good is `wholly assembled' in Haiti.''.
(g) Termination.--Section 213A of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703a) is amended by adding
at the end the following new subsection:
``(g) Termination.--Except as provided in subsection
(b)(1), the duty-free treatment provided under this section
shall remain in effect until September 30, 2018.''.
(h) Conforming Amendments.--Subsection (e)(1) of section
213A of the Caribbean Basin Economic Recovery Act (19 U.S.C.
2703a(e)(1)) is amended by striking ``the Bureau of Customs
and Border Protection'' each place it appears and inserting
``U.S. Customs and Border Protection''.
SEC. 15403. LABOR OMBUDSMAN AND TECHNICAL ASSISTANCE
IMPROVEMENT AND COMPLIANCE NEEDS ASSESSMENT AND
REMEDIATION PROGRAM.
Section 213A of the Caribbean Basin Economic Recovery Act
(19 U.S.C. 2703a), as amended by section 15402 of this Act,
is amended--
(1) in subsection (a)--
(A) by redesignating paragraph (5) as paragraph (8):
(B) by redesignating paragraphs (2) through (4) as
paragraphs (4) through (6), respectively;
(C) by inserting after paragraph (1) the following new
paragraphs:
``(2) Appropriate congressional committees.--. The term
``appropriate congressional committees'' means the Committee
on Finance of the Senate and the Committee on Ways and Means
of the House of Representatives.
``(3) Core labor standards.--The term ``core labor
standards'' means--
``(A) freedom of association;
``(B) the effective recognition of the right to bargain
collectively;
``(C) the elimination of all forms of compulsory or forced
labor;
``(D) the effective abolition of child labor and a
prohibition on the worst forms of child labor; and
``(E) the elimination of discrimination in respect of
employment and occupation.''; and
(D) by inserting after paragraph (6) (as redesignated) the
following new paragraph:
``(7) TAICNAR program.--The term `TAICNAR Program' means
the Technical Assistance Improvement and Compliance Needs
Assessment and Remediation Program established pursuant to
subsection (e).'';
(2) by redesignating subsections (e), (f), and (g) as
subsections (f), (g), and (h), respectively; and
(3) by inserting after subsection (d) the following new
subsection:
``(e) Technical Assistance Improvement and Compliance Needs
Assessment and Remediation Program.--
``(1) Continued eligibility for preferences.--
``(A) Presidential certification of compliance by haiti
with requirements.--Upon the expiration of the 16-month
period beginning on the date of the enactment of the Haitian
Hemispheric Opportunity through Partnership Encouragement Act
of 2008, Haiti shall continue to be eligible for the
preferential treatment provided under subsection (b) only if
the President determines and certifies to the Congress that--
``(i) Haiti has implemented the requirements set forth in
paragraphs (2) and (3); and
``(ii) Haiti has agreed to require producers of articles
for which duty-free treatment may be requested under
subsection (b) to participate in the TAICNAR Program
described in paragraph (3) and has developed a system to
ensure participation in such program by such producers,
including by developing and maintaining the registry
described in paragraph (2)(B)(i).
``(B) Extension.--The President may extend the period for
compliance by Haiti under subparagraph (A) if the President--
``(i) determines that Haiti has made a good faith effort
toward such compliance and has agreed to take additional
steps to come into full compliance that are satisfactory to
the President; and
``(ii) provides to the appropriate congressional
committees, not later than 6 months after the last day of the
16-month period specified in subparagraph (A), and every 6
months thereafter, a report identifying the steps that Haiti
has agreed to take to come into full compliance and the
progress made over the preceding 6-month period in
implementing such steps.
``(C) Continuing compliance.--
``(i) Termination of preferential treatment.--If, after
making a certification under subparagraph (A), the President
determines that Haiti is no longer meeting the requirements
set forth in subparagraph (A), the President shall terminate
the preferential treatment provided under subsection (b),
unless the President determines, after consulting with the
appropriate congressional committees, that meeting such
requirements is not practicable because of extraordinary
circumstances existing in Haiti when the determination is
made.
``(ii) Subsequent compliance.--If the President, after
terminating preferential treatment under clause (i),
determines that Haiti is meeting the requirements set forth
in subparagraph (A), the President shall reinstate the
application of preferential treatment under subsection (b).
``(2) Labor ombudsman.--
``(A) In general.--The requirement under this paragraph is
that Haiti has established an independent Labor Ombudsman's
Office within the national government that--
``(i) reports directly to the President of Haiti;
``(ii) is headed by a Labor Ombudsman chosen by the
President of Haiti, in consultation with Haitian labor unions
and industry associations; and
``(iii) is vested with the authority to perform the
functions described in subparagraph (B).
``(B) Functions.--The functions of the Labor Ombudsman's
Office shall include--
``(i) developing and maintaining a registry of producers of
articles for which duty-free treatment may be requested under
subsection (b), and developing, in consultation and
coordination with any other appropriate officials of the
Government of Haiti, a system to ensure participation by such
producers in the TAICNAR Program described in paragraph (3);
``(ii) overseeing the implementation of the TAICNAR Program
described in paragraph (3);
``(iii) receiving and investigating comments from any
interested party regarding the conditions described in
paragraph (3)(B) in facilities of producers listed in the
registry described in clause (i) and, where appropriate,
referring such comments or the result of such investigations
to the appropriate Haitian authorities, or to the entity
operating the TAICNAR Program described in paragraph (3);
``(iv) assisting, in consultation and coordination with any
other appropriate Haitian authorities, producers listed in
the registry described in clause (i) in meeting the
conditions set forth in paragraph (3)(B); and
``(v) coordinating, with the assistance of the entity
operating the TAICNAR Program described in paragraph (3), a
tripartite committee comprised of appropriate representatives
of government agencies, employers, and workers, as well as
other relevant interested parties, for the purposes of
evaluating progress in implementing the TAICNAR Program
described in paragraph (3), and consulting on improving core
labor standards and working conditions in the textile and
apparel sector in Haiti, and on other matters of common
concern relating to such core labor standards and working
conditions.
``(3) Technical assistance improvement and compliance needs
assessment and remediation program.--
``(A) In general.--The requirement under this paragraph is
that Haiti, in cooperation with the International Labor
Organization, has established a Technical Assistance
Improvement and Compliance Needs Assessment and Remediation
Program meeting the requirements under subparagraph (C)--
``(i) to assess compliance by producers listed in the
registry described in paragraph (2)(B)(i) with the conditions
set forth in subparagraph (B) and to assist such producers in
meeting such conditions; and
``(ii) to provide assistance to improve the capacity of the
Government of Haiti--
``(I) to inspect facilities of producers listed in the
registry described in paragraph (2)(B)(i); and
``(II) to enforce national labor laws and resolve labor
disputes, including through measures described in
subparagraph (E).
``(B) Conditions described.--The conditions referred to in
subparagraph (A) are--
``(i) compliance with core labor standards; and
``(ii) compliance with the labor laws of Haiti that relate
directly to core labor
[[Page H4647]]
standards and to ensuring acceptable conditions of work with
respect to minimum wages, hours of work, and occupational
health and safety.
``(C) Requirements.--The requirements for the TAICNAR
Program are that the program--
``(i) be operated by the International Labor Organization
(or any subdivision, instrumentality, or designee thereof),
which prepares the biannual reports described in subparagraph
(D);
``(ii) be developed through a participatory process that
includes the Labor Ombudsman described in paragraph (2) and
appropriate representatives of government agencies,
employers, and workers;
``(iii) assess compliance by each producer listed in the
registry described in paragraph (2)(B)(i) with the conditions
set forth in subparagraph (B) and identify any deficiencies
by such producer with respect to meeting such conditions,
including by--
``(I) conducting unannounced site visits to manufacturing
facilities of the producer;
``(II) conducting confidential interviews separately with
workers and management of the facilities of the producer;
``(III) providing to management and workers, and where
applicable, worker organizations in the facilities of the
producer, on a confidential basis--
``(aa) the results of the assessment carried out under this
clause; and
``(bb) specific suggestions for remediating any such
deficiencies;
``(iv) assist the producer in remediating any deficiencies
identified under clause (iii);
``(v) conduct prompt follow-up site visits to the
facilities of the producer to assess progress on remediation
of any deficiencies identified under clause (iii); and
``(vi) provide training to workers and management of the
producer, and where appropriate, to other persons or
entities, to promote compliance with subparagraph (B).
``(D) Biannual report.--The biannual reports referred to in
subparagraph (C)(i) are a report, by the entity operating the
TAICNAR Program, that is published (and available to the
public in a readily accessible manner) on a biannual basis,
beginning 6 months after Haiti implements the TAICNAR Program
under this paragraph, covering the preceding 6-month period,
and that includes the following:
``(i) The name of each producer listed in the registry
described in paragraph (2)(B)(i) that has been identified as
having met the conditions under subparagraph (B).
``(ii) The name of each producer listed in the registry
described in paragraph (2)(B)(i) that has been identified as
having deficiencies with respect to the conditions under
subparagraph (B), and has failed to remedy such deficiencies.
``(iii) For each producer listed under clause (ii)--
``(I) a description of the deficiencies found to exist and
the specific suggestions for remediating such deficiencies
made by the entity operating the TAICNAR Program;
``(II) a description of the efforts by the producer to
remediate the deficiencies, including a description of
assistance provided by any entity to assist in such
remediation; and
``(III) with respect to deficiencies that have not been
remediated, the amount of time that has elapsed since the
deficiencies were first identified in a report under this
subparagraph.
``(iv) For each producer identified as having deficiencies
with respect to the conditions described under subparagraph
(B) in a prior report under this subparagraph, a description
of the progress made in remediating such deficiencies since
the submission of the prior report, and an assessment of
whether any aspect of such deficiencies persists.
``(E) Capacity building.--The assistance to the Government
of Haiti referred to in subparagraph (A)(ii) shall include
programs--
``(i) to review the labor laws and regulations of Haiti and
to develop and implement strategies for bringing the laws and
regulations into conformity with core labor standards;
``(ii) to develop additional strategies for facilitating
protection of core labor standards and providing acceptable
conditions of work with respect to minimum wages, hours of
work, and occupational safety and health, including through
legal, regulatory, and institutional reform;
``(iii) to increase awareness of worker rights, including
under core labor standards and national labor laws;
``(iv) to promote consultation and cooperation between
government representatives, employers, worker
representatives, and United States importers on matters
relating to core labor standards and national labor laws;
``(v) to assist the Labor Ombudsman appointed pursuant to
paragraph (2) in establishing and coordinating operation of
the committee described in paragraph (2)(B)(v);
``(vi) to assist worker representatives in more fully and
effectively advocating on behalf of their members; and
``(vii) to provide on-the-job training and technical
assistance to labor inspectors, judicial officers, and other
relevant personnel to build their capacity to enforce
national labor laws and resolve labor disputes.
``(4) Compliance with eligibility criteria.--
``(A) Country compliance with worker rights eligibility
criteria.--In making a determination of whether Haiti is
meeting the requirement set forth in subsection (d)(1)(A)(vi)
relating to internationally recognized worker rights, the
President shall consider the reports produced under paragraph
(3)(D).
``(B) Producer eligibility.--
``(i) Identification of producers.--Beginning in the second
calendar year after the President makes the certification
under paragraph (1)(A), the President shall identify on a
biennial basis whether a producer listed in the registry
described in paragraph (2)(B)(i) has failed to comply with
core labor standards and with the labor laws of Haiti that
directly relate to and are consistent with core labor
standards.
``(ii) Assistance to producers; withdrawal, etc., of
preferential treatment.--For each producer that the President
identifies under clause (i), the President shall seek to
assist such producer in coming into compliance with core
labor standards and with the labor laws of Haiti that
directly relate to and are consistent with core labor
standards. If such efforts fail, the President shall
withdraw, suspend, or limit the application of preferential
treatment under subsection (b) to articles of such producer.
``(iii) Reinstating preferential treatment.--If the
President, after withdrawing, suspending, or limiting the
application of preferential treatment under clause (ii) to
articles of a producer, determines that such producer is
complying with core labor standards and with the labor laws
of Haiti that directly relate to and are consistent with core
labor standards, the President shall reinstate the
application of preferential treatment under subsection (b) to
the articles of the producer.
``(iv) Consideration of reports.--In making the
identification under clause (i) and the determination under
clause (iii), the President shall consider the reports made
available under paragraph (3)(D).
``(5) Reports by the president.--
``(A) In general.--Not later than one year after the date
of the enactment of the Haitian Hemispheric Opportunity
through Partnership Encouragement Act of 2008, and annually
thereafter, the President shall transmit to the appropriate
congressional committees a report on the implementation of
this subsection during the preceding 1-year period.
``(B) Matters to be included.--Each report required by
subparagraph (A) shall include the following:
``(i) An explanation of the efforts of Haiti, the
President, and the International Labor Organization to carry
out this subsection.
``(ii) A summary of each report produced under paragraph
(3)(D) during the preceding 1-year period and a summary of
the findings contained in such report.
``(iii) Identifications made under paragraph (4)(B)(i) and
determinations made under paragraph (4)(B)(iii).
``(6) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection the sum of
$10,000,000 for the period beginning on October 1, 2008, and
ending on September 30, 2013.''.
SEC. 15404. PETITION PROCESS.
Section 213A(d) of the Caribbean Basin Economic Recovery
Act (19 U.S.C. 2703A(d)) is amended by adding at the end the
following new paragraph:
``(4) Petition process.--Any interested party may file a
request to have the status of Haiti reviewed with respect to
the eligibility requirements listed in paragraph (1), and the
President shall provide for this purpose the same procedures
as those that are provided for reviewing the status of
eligible beneficiary developing countries with respect to the
designation criteria listed in subsections (b) and (c) of
section 502 of the Trade Act of 1974 (19 U.S.C. 2642 (b) and
(c)).''.
SEC. 15405. CONDITIONS REGARDING ENFORCEMENT OF
CIRCUMVENTION.
Section 213A(f) of the Caribbean Basin Economic Recovery
Act, as redesignated by section 15403(2) of this Act, is
amended by adding at the end the following new paragraph:
``(3) Limitation on goods shipped from the dominican
republic.--
``(A) Limitation.--Notwithstanding subsection (a)(5),
relating to the definition of `imported directly from Haiti
or the Dominican Republic', articles described in subsection
(b) that are shipped from the Dominican Republic, directly or
through the territory of an intermediate country, whether or
not such articles undergo processing in the Dominican
Republic, shall not be considered to be `imported directly
from Haiti or the Dominican Republic' until the President
certifies to the Congress that Haiti and the Dominican
Republic have developed procedures to prevent unlawful
transshipment of the articles and the use of counterfeit
documents related to the importation of the articles into the
United States.
``(B) Technical and other assistance.--The Commissioner
responsible for U.S. Customs and Border Protection shall
provide technical and other assistance to Haiti and the
Dominican Republic to develop expeditiously the procedures
described in subparagraph (A).''.
SEC. 15406. PRESIDENTIAL PROCLAMATION AUTHORITY.
The President may exercise the authority under section 604
of the Trade Act of 1974 to proclaim such modifications to
the Harmonized Tariff Schedule of the United States as may be
necessary to carry out this part and the amendments made by
this part.
[[Page H4648]]
SEC. 15407. REGULATIONS AND PROCEDURES.
The President shall issue such regulations as may be
necessary to carry out the amendments made by sections 15402,
15403, and 15404. Regulations to carry out the amendments
made by section 15402 shall be issued not later than
September 30, 2008. The Secretary of Commerce shall issue
such procedures as may be necessary to carry out the
amendment made by section 15402(d) not later than September
30, 2008.
SEC. 15408. EXTENSION OF CBTPA.
Section 213(b) of the Caribbean Basin Economic Recovery Act
(19 U.S.C. 2703(b)) is amended--
(1) in paragraph (2)(A)--
(A) in clause (iii)--
(i) in subclause (II)(cc), by striking ``2008'' and
inserting ``2010''; and
(ii) in subclause (IV)(dd), by striking ``2008'' and
inserting ``2010''; and
(B) in clause (iv)(II), by striking ``6'' and inserting
``8''; and
(2) in paragraph (5)(D)--
(A) in clause (i), by striking ``2008'' and inserting
``2010''; and
(B) in clause (ii), by striking ``108(b)(5)'' and inserting
``section 108(b)(5)''.
SEC. 15409. SENSE OF CONGRESS ON INTERPRETATION OF TEXTILE
AND APPAREL PROVISIONS FOR HAITI.
It is the sense of the Congress that the executive branch,
particularly the Committee for the Implementation of Textile
Agreements (CITA), U.S. Customs and Border Protection of the
Department of Homeland Security, and the Department of
Commerce, should interpret, implement, and enforce the
provisions of section 213A(b) of the Caribbean Basin Economic
Recovery Act, as amended by section 15402 of this Act,
relating to preferential treatment of textile and apparel
articles, broadly in order to expand trade by maximizing
opportunities for imports of articles eligible for
preferential treatment under such section 213A(b).
SEC. 15410. SENSE OF CONGRESS ON TRADE MISSION TO HAITI.
It is the sense of the Congress that the Secretary of
Commerce, in coordination with the United States Trade
Representative, the Secretary of State, and the Commissioner
responsible for U.S. Customs and Border Protection of the
Department of Homeland Security, should lead a trade mission
to Haiti, within 6 months after the date of the enactment of
this Act, to promote trade between the United States and
Haiti, to promote new economic opportunities afforded under
the amendments made by section 15402 of this Act, and to help
educate United States and Haitian business concerns about
such opportunities.
SEC. 15411. SENSE OF CONGRESS ON VISA SYSTEMS.
It is the sense of the Congress that Haiti, and other
countries that receive preferences under trade preference
programs of the United States that require effective visa
systems to prevent transshipment, should ensure that monetary
compensation for such visas is not required beyond the costs
of processing the visa, including ensuring that such monetary
compensation does not violate an applicable system to combat
corruption and bribery.
SEC. 15412. EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b), this
part and the amendments made by this part shall take effect
on the date of the enactment of this Act.
(b) Exception.--The amendments made by section 15402 shall
take effect on October 1, 2008, and shall apply to articles
entered, or withdrawn from warehouse for consumption, on or
after that date.
PART II--MISCELLANEOUS TRADE PROVISIONS
SEC. 15421. UNUSED MERCHANDISE DRAWBACK.
(a) In General.--Section 313(j)(2) of the Tariff Act of
1930 (19 U.S.C. 1313(j)(2)) is amended by adding at the end
the following: ``For purposes of subparagraph (A) of this
paragraph, wine of the same color having a price variation
not to exceed 50 percent between the imported wine and the
exported wine shall be deemed to be commercially
interchangeable.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to claims filed for drawback under
section 313(j)(2) of the Tariff Act of 1930 on or after the
date of the enactment of this Act.
SEC. 15422. REQUIREMENTS RELATING TO DETERMINATION OF
TRANSACTION VALUE OF IMPORTED MERCHANDISE.
(a) Requirement on Importers.--
(1) In general.--Pursuant to sections 484 and 485 of the
Tariff Act of 1930 (19 U.S.C. 1484 and 1485), the
Commissioner responsible for U.S. Customs and Border
Protection shall require each importer of merchandise to
provide to U.S. Customs and Border Protection at the time of
entry of the merchandise the information described in
paragraph (2).
(2) Information required.--The information referred to in
paragraph (1) is a declaration as to whether the transaction
value of the imported merchandise is determined on the basis
of the price paid by the buyer in the first or earlier sale
occurring prior to introduction of the merchandise into the
United States.
(3) Effective date.--The requirement to provide information
under this subsection shall be effective for the 1-year
period beginning 90 days after the date of the enactment of
this Act.
(b) Report to International Trade Commission.--
(1) In general.--The Commissioner responsible for U.S.
Customs and Border Protection shall submit to the United
States International Trade Commission on a monthly basis for
the 1-year period specified in subsection (a)(3) a report on
the information provided by importers under subsection (a)(2)
during the preceding month. The report required under this
paragraph shall be submitted in a form agreed upon between
U.S. Customs and Border Protection and the United States
International Trade Commission.
(2) Matters to be included.--The report required under
paragraph (1) shall include--
(A) the number of importers that declare the transaction
value of the imported merchandise is determined on the basis
of the method described in subsection (a)(2);
(B) the tariff classification of such imported merchandise
under the Harmonized Tariff Schedule of the United States;
and
(C) the transaction value of such imported merchandise.
(c) Report to Congress.--
(1) In general.--Not later than 90 days after the
submission of the final report under subsection (b), the
United States International Trade Commission shall submit to
the appropriate congressional committees a report on the
information contained in all reports submitted under
subsection (b).
(2) Matters to be included.--The report required under
paragraph (1) shall include--
(A) the aggregate number of importers that declare the
transaction value of the imported merchandise is determined
on the basis of the method described in subsection (a)(2),
including a description of the frequency of the use of such
method;
(B) the tariff classification of such imported merchandise
under the Harmonized Tariff Schedule of the United States on
an aggregate basis, including an analysis of the tariff
classification of such imported merchandise on a sectoral
basis;
(C) the aggregate transaction value of such imported
merchandise, including an analysis of the transaction value
of such imported merchandise on a sectoral basis; and
(D) the aggregate transaction value of all merchandise
imported into the United States during the 1-year period
specified in subsection (a)(3).
(d) Sense of Congress Regarding Prohibition on Proposed
Interpretation of the Term ``Sold for Exportation to the
United States''.--
(1) In general.--It is the sense of Congress that the
Commissioner responsible for U.S. Customs and Border
Protection should not implement a change to U.S. Customs and
Border Protection's interpretation (as such interpretation is
in effect on the date of the enactment of this Act) of the
term ``sold for exportation to the United States'', as
described in section 402(b) of the Tariff Act of 1930 (19
U.S.C. 1401a(b)), for purposes of applying the transaction
value of the imported merchandise in a series of sales,
before January 1, 2011.
(2) Exception.--It is the sense of Congress that beginning
on January 1, 2011, the Commissioner responsible for U.S.
Customs and Border Protection may propose to change or change
U.S. Customs and Border Protection's interpretation of the
term ``sold for exportation to the United States'', as
described in paragraph (1), only if U.S. Customs and Border
Protection--
(A) consults with, and provides notice to, the appropriate
congressional committees--
(i) not less than 180 days prior to proposing a change; and
(ii) not less than 90 days prior to publishing a change;
(B) consults with, provides notice to, and takes into
consideration views expressed by, the Commercial Operations
Advisory Committee--
(i) not less than 120 days prior to proposing a change; and
(ii) not less than 60 days prior to publishing a change;
and
(C) receives the explicit approval of the Secretary of the
Treasury prior to publishing a change.
(3) Consideration of international trade commission
report.--It is the sense of Congress that prior to publishing
a change to U.S. Customs and Border Protection's
interpretation (as such interpretation is in effect on the
date of the enactment of this Act) of the term ``sold for
exportation to the United States'', as described in section
402(b) of the Tariff Act of 1930 (19 U.S.C. 1401a(b)), for
purposes of applying the transaction value of the imported
merchandise in a series of sales, the Commissioner
responsible for U.S. Customs and Border Protection should
take into consideration the matters included in the report
prepared by the United States International Trade Commission
under subsection (c).
(e) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means the Committee
on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate.
(2) Commercial operations advisory committee.--The term
``Commercial Operations Advisory Committee'' means the
Advisory Committee established pursuant to section 9503(c) of
the Omnibus Budget Reconciliation Act of 1987 (19 U.S.C. 2071
note) or any successor committee.
(3) Importer.--The term ``importer'' means one of the
parties qualifying as an ``importer
[[Page H4649]]
of record'' under section 484(a)(2)(B) in the Tariff Act of
1930 (19 U.S.C. 1484(a)(2)(B)).
(4) Transaction value of the imported merchandise.--The
term ``transaction value of the imported merchandise'' has
the meaning described in section 402(b) of the Tariff Act of
1930 (19 U.S.C. 1401a(b)).
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Minnesota (Mr. Peterson) and the gentleman from Ohio (Mr. Boehner) each
will control 20 minutes.
The Chair recognizes the gentleman from Minnesota.
Mr. PETERSON of Minnesota. Mr. Speaker, I yield myself such time as I
may consume.
The bill before the House is identical to the provisions of the
conference agreement on H.R. 2419 as adopted by the House and the
Senate, with the exception of the added provisions to ensure, number
one, that the legislative history associated with H.R. 2419 is carried
forward; and, number two, that the two bills do not have simultaneous
force and effect. Otherwise, by passing this bill, we are giving
ourselves another opportunity to send to the President exactly what the
House and the Senate have already passed by large bipartisan votes.
Mr. Speaker, I reserve the balance of my time.
Mr. BOEHNER. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, yesterday the House voted to override a bill that the
President vetoed, except that it wasn't the bill that the House and
Senate had passed. And rather than stop, try to determine what the
problem was and then to work toward an agreement as to how we proceed,
it didn't happen. As a result, we are now stuck in this quagmire of
trying to determine how best to get this bill enacted into law. Yet,
once again, instead of stopping, sitting down and working in a
bipartisan way to understand what happened and how we ought to resolve
this, the majority is continuing to just move vehicles to the Senate,
hoping that they can sort it out.
Now, my colleague and friend from Minnesota says that this 1,768-page
bill is identical, with exceptions, to the bill that the House passed.
If I could ask the gentleman from Minnesota, did you read all 1,768
pages of this?
Mr. PETERSON of Minnesota. Not this morning.
Mr. BOEHNER. Did anybody read all 1,768 pages of this?
Mr. PETERSON of Minnesota. My staff worked through this and assured
me this is the exact same bill that passed the House and Senate and was
sent to the President.
Mr. BOEHNER. Reclaiming my time, this bill, 1,768 pages, was
introduced less than 1 hour ago. There are no Members who have read
this. I doubt there is any staff that has read all of this, because you
couldn't possibly have read all of this over the course of the last
hour. 1,768 pages, $300 billion over the next 5 years, $600 billion
over the next 10 years. Yet we are going to expect Members to come down
here and cast a vote on this, not knowing what is in here.
We thought that when we passed the farm bill, it was the bill that
passed the House and the Senate. The President thought the bill sent to
him was the bill that the House and Senate passed. We thought it was
the bill the House and Senate passed. But, guess what? It wasn't. Now
we are being asked to vote on a 1,768-page bill that spends nearly $300
billion over the next 5 years, we have had the bill for less than an
hour, and everybody is hoping, hoping, it is the same bill that we
passed, except with some enrolling corrections. I think that is a real
stretch.
I reserve the balance of my time.
Mr. PETERSON of Minnesota. Mr. Speaker, I reserve the balance of my
time.
Mr. BOEHNER. Mr. Speaker, I am pleased to yield 3 minutes to the
gentleman from Arizona (Mr. Flake).
Mr. FLAKE. I thank the gentleman for yielding.
You know, when we pass legislation like this, 1,700 pages, barely
have time to print it, let alone read it, we are going to have problems
like this. Let me just mention a couple of the problems and issues that
have come up over the last couple of days when we have been trying to
deal with this legislation.
Our office found out just a couple of days ago after the bill had
already passed that there was another subsidy program actually added to
the bill during the conference that was not part of the House bill and
was not part of the Senate bill. This is potentially a massive, massive
liability for the taxpayers. According to the Department of
Agriculture, this could mean as much as $16 billion, in addition to
everything else in the bill, additional liability for the taxpayers
annually.
We don't know much about this program at all. All we know is that for
years now the farming community has been upset that they haven't been
able to collect money off the countercyclical program and the loan
deficiency payment program because prices have been so high. So this
new program was put in so the threshold would be much higher at which
subsidies kicked in.
The only way this could be scored by the CBO as being compliant with
our budget rules is to baseline shop. What that means is instead of
taking this year's baseline where we should benchmark our spending off
of, it is to go back to last year's baseline. And I believe the
information is correct that had we used this year's baseline instead of
last year's baseline, CBO informs us that they would have scored this
as a $2 billion hit additionally, rather than being scored even, as it
is in the bill. I mention this only because this is just another
example of what we get when we move with haste like this, when we get a
bill that virtually nobody has read.
Now, the things that we know well about the farm bill should give us
pause enough. I mentioned before that we face tremendous problems going
forward in terms of entitlements and unfunded liabilities. We are,
according to USA Today, and we probably get better information there
than what we say on this floor, when you include all of our unfunded
liabilities and our debt that is out there, it means that every person
in America has a debt of about $500,000. Half a million dollars in debt
is what we owe when you total unfunded liabilities and our debt.
We simply cannot go forward like this and add a $300 billion bill
that pays a farm couple that earns as much as $2.5 million subsidies
and continue to pay down the debt. We are simply adding more.
With that, I would urge rejection of this measure.
Mr. PETERSON of Minnesota. Mr. Speaker, this is, as I said earlier,
the exact bill that was voted on and passed by the House and the
Senate. The gentleman is wrong. The provision that he is referring to
was in both the House bill and the Senate bill, and it was also an
original idea from the White House that was in their original farm
proposal. So this is not some new program that came about in the
conference committee. It was in the bill that passed the House, it was
in the bill that passed the Senate, and it was in the President's bill
that they proposed. In fact, this was a reform that was suggested by
the White House and the administration.
So you can make all kinds of outrageous assumptions and come up with
outrageous charges, which has been done for some time on this bill. The
idea that there is going to be anybody in this country that has $2.5
million of adjusted gross income and is going to be able to collect
farm payments is complete lunacy. That is not true. And whatever people
they have been able to get to score this to come up with these numbers,
nobody can verify that. These are more charges that we have dealt with.
This bill was filed on May 13. It has been available for everybody to
read since May 13. It is exactly the same bill that has been out there
all of this time. The error that was made was made by the Enrolling
Clerk, not by this committee, and it is unfortunate. What we are trying
to do here is fix the situation.
I am not sure that we need to do what we are doing here. But to try
to accommodate some concerns on the part of the minority and others
that have raised issues, what we are doing here is re-passing the bill
exactly the way that it passed the House and the Senate, the way that
it should have gone to the President, so that we can move this bill out
of the House, the Senate can deal with it, the President can veto it,
we can override it, and in the provisions we will vitiate the work that
has been done with the House and
[[Page H4650]]
Senate overriding the veto of the current bill.
It is a messy process. It is something we would just as soon not go
through. But it is where we are at. We are trying to deal with fixing a
clerical error that was caused by the Enrolling Clerk, and we think
this is an appropriate way to do that.
I reserve the balance of my time.
Mr. BOEHNER. Mr. Speaker, I am pleased to yield 3 minutes to the
ranking Republican on the House Agriculture Committee, the gentleman
from Virginia (Mr. Goodlatte).
Mr. GOODLATTE. I thank the leader for yielding and for all of the
effort that he and virtually every Member of this House put into this
legislation now. If some of us are experiencing a sense of deja vu, it
is because we are considering the exact same bill that we passed with
overwhelming bipartisan support last Wednesday. The Senate also passed
the bill by a significant margin.
However, yesterday it was determined that somewhere between the House
and Senate passage of the farm bill, while the bill was being enrolled,
title III, the trade title, was accidentally omitted from the enrolled
bill that was then sent to the President. To avoid future uncertainty
or constitutional questions about the bill omitting the trade title, we
are presenting the same farm bill that we passed last week to both
chambers and running it back through the necessary procedures to ensure
the whole bill becomes law.
While the substance and content of the bill is the exact same as we
passed last week, three technical items have been added to reflect the
technical corrections necessary. The technical changes to correct the
clerical error include, one, a slight change to the long title in order
to distinguish the bill from H.R. 2419; a provision that deems the
conference report on H.R. 2419 to be the legislative history of this
new bill; and a provision that prevents duplication of the identical
sections on H.R. 2419 upon adoption. This would prevent double spending
if the Senate overrides the veto and 14 titles are in law when this new
bill is enacted.
Other than those technical corrections, we are simply redoing the
farm bill to correct the error.
Let me say that while it was an unfortunate error, it also was an
egregious error. This is a very serious problem that has been created,
and we are seeing that reflected in the fact that we are taking several
different approaches to try to make sure that the farm bill which had
that strong bipartisan support is indeed enacted into law. So it is
with some disappointment that I see the majority table the privileged
resolution offered by the Republican leader and not look into this in
greater detail. I think it certainly deserves that attention, and it
would be my hope that the majority would reconsider that approach and
bring that privileged resolution to a vote so we can get to the bottom
of all the considerations that need to be made regarding this and how
this can be avoided in the future, but also to find out exactly what
indeed did happen in the past few days that led to the unfortunate
situation we find ourselves in today of again finding it necessary to
pass this legislation, which I urge my colleagues to again adopt, as
they already have voted for it once and have subsequently voted to
override the President's veto, so we can indeed do what America's
farmers and ranchers seek, and that is to have a new farm bill that is
forward looking and that does address the concerns that have been
brought to the attention of the committees.
Mr. PETERSON of Minnesota. Mr. Speaker, I reserve the balance of my
time.
Mr. BOEHNER. Mr. Speaker, I reserve the balance of my time.
Mr. PETERSON of Minnesota. Does the gentleman have further speakers?
Mr. BOEHNER. Just myself. I will be happy to close.
Mr. PETERSON of Minnesota. Okay. We will give the minority leader the
opportunity to close. I will just make some brief comments, and then
yield back my time.
At this point I will reserve my time.
{time} 1300
Mr. BOEHNER. So I can assume that the gentleman only has himself to
close.
Let me yield 1 minute to the gentleman from Arizona (Mr. Flake).
Mr. FLAKE. I thank the gentleman for yielding.
I just wanted to respond to the statement that was made that we were
wrong on the ACRE program in terms of what bills it was in. The ACRE
program was not in the House-passed bill. It was in the conference
report that passed the House later, is my understanding. It may have
been in the Senate bill, but it wasn't a version that ended up in the
bill itself.
Mr. PETERSON of Minnesota. If the gentleman will yield, we had an
optional ACRE in our bill that passed the House.
Mr. FLAKE. That is not the information that I had.
And the point that I made with regard to the scoring by CBO stands.
If you use an earlier baseline, it affects it tremendously. If you use
the baseline that we should be using under the budget rules adopted by
this House, by this majority, then the program would not score as it
did; it would score as a big hit to the taxpayer rather than something
else.
Mr. PETERSON of Minnesota. Would the gentleman yield?
We had an option to ACRE in the House bill that was different than
the Senate. We had a national trigger, they had a State trigger. So it
was in both bills.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. BOEHNER. I yield the gentleman 1 additional minute.
Mr. FLAKE. I would like to see it. My information was that it was not
in the House bill; and, that if it was in the Senate, it was
considerably different than what came over here.
But I think one thing we know is it was not appropriately vetted,
because USDA was completely surprised at the numbers that came out.
They are the ones, when they are saying all these numbers are flying
around, the $16 billion in exposure is from the USDA. It is not pulled
from some outside group or some other group, it is the USDA that is
saying that this could cost us an additional $16 billion. And that
should be considered, and it wasn't in this House; it simply was swept
under the rug. That is what happens when you deal with a bill this big
this quickly.
Mr. BOEHNER. Mr. Speaker, I yield myself the balance of our time.
Most of my colleagues know that I opposed the farm bill when it
originally came up, and I opposed it because it was filled with
earmarks. There was a $250 million earmark for a ranch in Montana,
there was an earmark for $170 million for salmon fisheries on the West
Coast, and a number of other earmarks in the bill. And as has been
pointed out, the more that this bill has lain around, the more that we
have found other provisions in the bill that Members, let's say, it may
have not caught their eye when it went through the House or the Senate.
The point that I am making is that given the commodity prices that we
have in America, we can do better with this farm bill.
I understand the need for a farm bill and a need to ensure that
America's farmers and ranchers have the kind of program that will
ensure that America has a sufficient food supply and, frankly, a
sufficient supply of food to export to many countries around the world.
But having said that, when we have over $5 a bushel corn, over $13 a
bushel for soybeans, wheat in double digits, to be spending some $287
billion on this program I think is unwarranted. As I said when we
considered the conference report on the farm bill last week, we can do
better. This is the same old-same old that we have been doing for some
50 years.
While I appreciate the work that my colleagues put into it, I have
worked closely with Mr. Peterson and Mr. Goodlatte for an awful long
time, 18 years with my friend Mr. Peterson, 16 years with my friend Mr.
Goodlatte. We have been through a lot of farm bills together and a lot
of agriculture issues together. But at some point the American people
look up and say, whoa, Washington, you are broken. And my point has
been is that this farm bill is just another example; that at a time
when we have got the highest food prices in the history of the country,
we have the highest commodity prices we have ever had, we are
continuing to go down the same old path.
The point that Mr. Flake brings up, something that I was unaware of
in the
[[Page H4651]]
bill, something I think most Members were unaware of in the bill, is
this new revenue assurance program that allows American farmers over
the next 2 years to lock in at today's prices for the future.
Now I think that is the best deal in the world. How many Americans
wouldn't like to say, I am going to lock my salary in for the next 5
years, guaranteed. No chance they would ever lose their job, no chance
that their pay will ever get cut. Let me tell you, when it is too good
to be true, it usually is.
Now if the farm bill isn't bad enough, the process that we are going
through to try to rectify an error is--again, remember we have had this
bill just over an hour. I am hurting my back trying to lift this thing,
1,768 pages, and just over 1 hour ago we got this.
I know the intent of the gentleman from Minnesota, the chairman, is
that this be identical to the conference report that we passed. But
nobody knows. Nobody has read it. Nobody has had a chance to read it. I
urge my colleagues to vote ``no.''
I yield back the balance of my time.
Mr. PETERSON of Minnesota. Mr. Speaker, I have a copy of the House-
passed bill, and in our bill we had a countercyclical revenue assurance
program that was a national trigger, as I said earlier.
This is an idea that came about from the White House, and it is not
something that is going to be given to people just automatically. This
is reviewed as a reform and it was sold as a reform by the White House,
and I was skeptical of it.
But you have to give up 20 percent of your direct payments in order
to get into this program. You have to lower your loan rate 30 percent.
And this works not only going up, it works going down. So people are
taking a risk by getting involved in this program as well as
opportunity on the other side.
So you can have your arguments about it, but this is something that
we are trying out as an option. It is something we are going to see how
it works between now and 2012. There are a lot of people, including the
administration, that think that this is a better way to go than the
current target priced countercyclical marketing loan situation that we
have. We will see. I have been skeptical of it. But there are people in
the Senate and other places that were thinking that this is a good
reform.
Now this idea that was just put forward by the minority leader that
somehow or another this $287 billion goes to farmers, we have editorial
writers saying the same thing around this country. The reality is that
what actually goes to farmers under this bill is less than 9 percent of
the bill, the traditional crop supports. 73.5 percent of the 10-year
bill goes to nutrition. And if you add in crop insurance and the new
disaster program, which is paid for, for the first time, you are up to
about 15 percent of the total bill going to farmers.
So this idea that $287 billion is going to farmers is not true. All
of the new money in this bill is going to nutrition, going to
conservation, going to fruits and vegetables, going to energy. The
reality is that what is in this bill for farmers is less than it was in
the old law. This bill is less than the total cost of the 2002 bill.
This bill is less than what passed the House and the Senate. And this
bill is exactly what we passed in the House, exactly what we passed in
the Senate, and was sent to the President. What we are trying to do
here today is fix this problem. I encourage my colleagues to support
this bill, and let us get this farm bill finally resolved.
Mr. BERMAN. Mr. Speaker, I rise in strong support of the nutrition
title of the pending bill. It includes many urgently needed
improvements to our food assistance programs for low-income people.
As a senior member of the Judiciary Committee, I am particularly
pleased to see this title includes language to correct a couple of
problems that have arisen relating to the enforceability of the Act and
to ensure that no further problems exist.
The Food Stamp Act has long been recognized as fully enforceable on
behalf of active and prospective participants. This history of
enforceability is comparable to that of securities regulations, which
the courts have long accepted. When, many years ago, a panel of the
Fifth Circuit found no private right of action under the Food Stamp Act
in a case brought by a pro se plaintiff, several other circuits, and
ultimately the Fifth Circuit en banc, rejected that conclusion. Had
they not done so, I have no doubt we would have intervened.
Recently, a couple of Federal courts cast doubt on this long-held
principle, one by finding the Department's regulations on bilingual
service unenforceable and another by forcing plaintiffs to meet the
high standards for supervisory liability when suing a State to enforce
the act and regulations against local agencies. I am pleased that this
legislation overrules both of those decisions.
More broadly, the legislation recognizes that lawsuits by individual
households or classes of household to enforce their rights under the
act and regulations are an important part of the program. There now
should be no doubt, if there ever was any, that all provisions of the
act and regulations that help individuals get food assistance, or that
protect them from burdens in their pursuit of food aid, are intended to
create enforceable rights, with corrective injunctions or back benefits
(the latter subject to the limitations in the act) as appropriate.
The act does not require States or the Department only to exercise
reasonable efforts or to substantially comply with its requirements and
those in the regulations: it gives each individual a right to be
treated as the act and rules provide. The act and regulations have an
unmistakable focus on the benefited class of participants and
prospective participants, they are written in mandatory, not precatory
terms, and they are concerned with the treatment of individuals as much
as they are with aggregate or system-wide performance.
I cannot imagine how Congress could be any clearer in this regard. I
anticipate that we will have no further confusion concerning the
enforceability of the act and regulations.
Mr. BACA. Mr. Speaker, the nutrition title in the Conference Report
for the 2008 Farm Bill is a monumental achievement for the millions of
Americans who struggle to put enough healthy, nutritious food on the
table. I know it's not always easy to make ends meet and to put food on
the table each day. I've walked in those shoes, and I've sat at that
table. But with this bill we start to fulfill our responsibility to our
neighbors. We have improved and strengthened food stamps and other
important nutrition programs for our children and seniors. I want to
take a few minutes to expand upon some of the accomplishments that are
in this nutrition title.
First off, we have updated the name of the program. The new name will
be SNAP: The Supplemental Nutrition Assistance Program. We needed a new
name because there are no places left in this country where food stamps
actually are ``stamps.'' Instead, like with other modern transactions,
people swipe their cards at the store to access their benefits. This
has been a huge success for reducing fraud and stigma in the program.
We hope and expect that the new name and new image for the program will
help us to continue to chip away at the stigma that keeps some proud
people, especially senior citizens, from signing up for help in paying
for their groceries and puts them at risk of hunger.
The name reflects the fact that the program provides a ``supplement''
to help people afford an adequate diet when their own resources are not
quite enough. We also say ``nutrition,'' instead of ``food,'' because
the program is about more than just food. It has got a vibrant
nutrition education component to help our low-income population learn
about healthy diets and make the choices that will improve their health
status over their lifetimes. So I'm very proud of this new name for
food stamps: an established program that is one of the best government
programs we've got. Let me be clear, however, that in changing the name
and eliminating food stamp coupons we did not intend to make any other
policy changes to the program.
I think the biggest single accomplishment in the nutrition title is
to end the decades of erosion in the value of food stamp benefits.
We're all aware of the rising gas and food prices of recent months and
the bite they've taken out of the pocketbooks of most Americans. But
for many low-income Americans the squeeze has been getting tighter for
decades, as the value of their food stamps has been able to purchase
less and less food with each passing year. Food stamp benefits average
only $1 per person per day. It's not easy to purchase a healthy,
nutritious diet on such a limited amount.
So in this bill we have addressed this problem. We made critical
improvements, and, for the first time in the program's history, we have
ensured that, in every aspect, the food stamp program keeps its
purchasing power over time. We raise the standard deduction from $134
to $144 and index it for inflation. That is an important
accomplishment. It helps about 10 million people afford more food--
families, seniors, people with disabilities--all types of low-income
food stamp recipients are helped by this change. We raise the minimum
benefit, and index it for inflation. We uncap the dependent care
deduction so that families can deduct the full cost of the child care
they so desperately depend on to hold down their
[[Page H4652]]
jobs. And we index the asset limits. We don't know what the future will
hold. Hopefully, the high inflation of the past months will shortly
subside as the country gets back on track. But we now can rest assured,
as never before, that if there is substantial inflation our low-income
families and senior citizens won't lose out on food.
For me what this bill really is about is people. It's about our
senior citizens who have worked hard their whole lives and deserve
better than to face the fear of hunger in their last years. It's about
children, who come home from school and look to their parents to put a
nutritious meal on the table.
One of the groups that will be most helped are our Nation's senior
citizens. We were able to increase the minimum benefit, which goes
predominantly to senior citizens, from $10 to about $14 a month. This
is the first increase in almost 30 years in the minimum benefit. I
would have liked to have increased it even more, but this change will
help make it worthwhile for some of our seniors who qualify for a low
benefit to participate in the program. We did this by setting the
minimum benefit at 8 percent of the thrifty food plan for a single
person. Because USDA adjusts the thrifty food plan every year for
increases in food prices, so too will the minimum benefit now adjust.
In addition, because of higher food prices in some places, like Alaska,
Hawaii, and some of the territories, seniors in these places will now
also see a modestly higher minimum benefit. For example in some parts
of Alaska, the minimum benefit will be as high as $25 per month.
In this bill we've also excluded retirement accounts from assets and
indexed the asset limits to inflation. These changes will help seniors
and working families to save for the future. It makes no sense to
require people who fall on hard times to virtually liquidate all of the
savings they've managed to put away in order to get help paying for
groceries for themselves and their families. Our seniors, especially,
may have no ability to replace these savings, and as a result, no
cushion to deal with unexpected expenses. And a working family who is
forced to spend down savings now will be that much closer to poverty in
their older years. So this is an important change for the long-term
ability of low-income individuals to move toward financial independence
and for our senior citizens to be able to retain an ability to support
themselves in their retirement.
But I also want to reaffirm that we did not take away, as President
Bush proposed, the State option in the food stamp program to design a
more appropriate asset test at the State level. In my home State of
California the legislature and Governor have been working together to
design an ``expanded categorical eligibility'' program that will revise
the asset limit for many food stamp recipients and make it easier for
them to save for the future. I hope that other States consider this
option, and I urge USDA to work with other States to promote this
important policy.
In another major improvement for senior citizens, we have expanded to
seniors a State option from the 2002 farm bill that dramatically
reduces paperwork requirements. This policy is known as ``simplified
reporting'' and it will allow seniors to participate without filing
paperwork for 12 month periods, unless they have a major increase in
their income that makes them ineligible for food stamps. I urge USDA to
make this option as simple and streamlined for seniors and States as
possible, and to find ways to insulate food stamp benefits from
interactions with other programs that low-income seniors participate
in, particularly Medicaid.
Finally, we have heard reports that despite the overwhelming success
of the electronic benefits, some seniors can find the technology
confusing. For those at the minimum benefit who receive maybe only $10
to $20 a month, we've heard concerns that if they don't use their
benefits fast enough those benefits can be taken away--or moved
``offline''--sometimes in as short a period as 3 months, with the
senior citizen not understanding why this has occurred. I don't think
this is a very common problem, but it is understandable that a senior
citizen might want to store up small benefits to use at one shopping
trip every few months, rather than have to keep track of the card every
month. This bill allows States to move benefits off-line after 6 months
of inactivity, but requires them to notify the household and restore
the benefits within 48 hours upon request. This benefit reinstatement
should be a simple process, and States should aim to help seniors
navigate it, so we don't have our seniors being bounced around an EBT
call center trying to figure out what happened to their food stamp
benefits.
For children and families, the biggest change we make is the increase
and indexing of the standard deduction which will significantly boost
the ability of low-wage workers to afford food for their families,
especially over time. More than $5 billion of the nutrition title's 10-
year investment go to this change, which primarily benefits families
with children.
We also lift the limit on the dependent care deduction. This change
will help about 100,000 families who pay out-of-pocket child care costs
above $175 per child per month (or $200 for infants), by recognizing
that money that is needed to pay for child care so that a parent can
work is not available to purchase food. On average, families who are
helped will receive an additional $40 a month (or $500 a year),
according to the Congressional Budget Office. The dependent care cap
has not been raised since the early 1990s, despite the increases in the
costs of safe, reliable child care. Families incur all types of costs
in order to secure child care for their children, and USDA should
continue to allow all of these expenses to count toward the deduction--
such as transportation costs to and from day care and the cost of
informal care. Finally, as states roll this out to the 100,000 families
currently on the program, its important that they make it easy for
eligible families to claim the new deduction. Families shouldn't have
to make extra trips to the food stamp office or be at risk of losing
benefits if they fail to claim a new higher deduction. A household
should never have its benefits cut or reduced because of a failure to
document child care expenses, but should be given a full opportunity to
receive the higher deduction if they have expenses above the current
capped amounts.
We hear all the time that despite the importance and success of the
food stamp program, for most families the benefits run out before the
end of the month. That is why it is so important that we provide more
than $1.2 billion in this farm bill for additional food purchases for
emergency food organizations, like church food pantries and soup
kitchens, to feed our families and seniors. We provide $50 million in
additional funds this year to help meet food banks needs in light of
rising food costs. And, we increase the basic The Emergency Food
Assistance Program annual funding level to $250 million. That amount
will be adjusted for inflation in future years to insure that this
program does not lose any of its food purchasing power.
Another important provision for our children is a provision that
ensures that children who receive food stamps can automatically, or
``directly'' be certified as eligible for free meals. The eligibility
rules for the two programs overlap: virtually every child who receives
food stamps is eligible for free meals. So making that connection in an
automated way can save the family from falling through the cracks or
from having to file duplicative paperwork. Unfortunately, too many
States and schools don't currently make the connection adequately. So
this bill requires USDA to report to Congress annually on each State's
progress in directly certifying food stamp recipients for free school
meals, and asks for USDA to report on best practices among the various
States and school districts. This is a provision that is about good
government--there is no reason the government can't make these
connections, instead of requiring school administrators and families to
be responsible for duplicative paperwork.
In addition to my role as the Agriculture's Subcommittee Chair on
Operations, Oversight, Nutrition, and Forestry, I also have the great
pleasure to assess this bill from the perspective of my role as the
chairman of the Congressional Hispanic Caucus. More than 5 million
Latinos, or more than 10 percent of the Latino population, receive food
stamps each month. Food stamps constitute 25 percent of total monthly
income for a typical Latino family that participates in the food stamp
program. All of the changes that I have just described will benefit
low-income Latinos who rely upon this program.
I must take one moment to express my deep personal disappointment
that we were not able to restore food stamp benefits to all legal
immigrants who are currently ineligible for the program. Keeping food
assistance from hard-working immigrants with whom we live side by side
is simply wrong and I will not stop fighting until we fully repeal the
benefit cuts to legal immigrants enacted in 1996.
In spite of this major setback, we have achieved a number of
important improvements for the Latino community. First, USDA will
conduct a study on the possibility of bringing the Commonwealth of
Puerto Rico back into the national food stamp program. Since 1982
Puerto Rico has received a fixed block grant amount for food
assistance, rather than be a part of the U.S. program like the 50
States, District of Columbia, Guam, and the Virgin Islands. This block
grant does not take into account changes in economic or demographic
conditions, such as unemployment or the number of people who are in
need of food assistance.
The poverty rate in Puerto Rico (45 percent) is more than three times
the national poverty rate. However, because of the block grant, Puerto
Rico cannot afford to provide benefits to all households poor enough to
qualify for benefits using food stamp program standards. Instead they
have been forced to impose rigid eligibility criteria. For example, a
family of four
[[Page H4653]]
with net income above about $600 a month (or 34 percent of the Federal
poverty level) cannot get any food assistance in Puerto Rico. The same
family living in California, or any other State on the mainland, could
have almost three times as much income and still be eligible for food
assistance. An elderly person living alone faces an income limit of
$192 per month--just 23 percent of the poverty level.
Clearly, some of our most vulnerable American citizens are at risk of
being denied food assistance they greatly need. It seems just plain
wrong to knowingly leave some Americans with insufficient food. With
this study we hope to get a better understanding of what the local
conditions are in Puerto Rico, in terms of food costs, poverty and
other programmatic factors so that we can figure out how to address the
issue in the next farm bill, or earlier if possible.
Another important achievement of the bill is to ensure that both
Federal statute and regulations have the full force of law, ensuring
that clients who do not receive adequate service under these rules and
standards may bring suit. Recently, a district court in Ohio dismissed
a case brought against the State to enforce the Department's
regulations for serving people whose primary language is not English. I
can't speak to whether the case had any merit, but my colleagues and I
were surprised and disturbed to learn about the court's dismissal. We
felt that it was critical to clarify in this bill that it has always
been Congress's intent that the program's regulations should be fully
enforceable and fully complied with to the same extent as the statute.
The farm bill, therefore, clarifies that the Department's rules on
serving non- and limited-English speaking people have the force of law
and create rights for households.
Beyond the issue of bilingual access rules, this legislation makes
clear that the Department's civil rights regulations are among those
which have the full force of law and which households have the right to
enforce. Discrimination is not acceptable in any form or at any point
in the food stamp certification process. Households should not be
assisted, or not assisted, approved or denied for any reason other than
an individual assessment of their need for help or their eligibility by
the State. I am pleased to be playing a role in making clear that the
committee and the Congress wish the program to be administered in
compliance with the Food Stamp Act and its regulations.
I'd like to also talk about a somewhat related matter that we did not
manage to agree to include in this farm bill, much to my
disappointment. I worked hard to include in the House bill, and
shepherd through the conference negotiations, a provision that would
have strengthened the long-standing policy in the food stamp program
that certification and eligibility decisions should be done by State
employees, rather than private companies. We would have added to the
traditional restrictions around merit systems and provided specific
exceptions for certain activities, such as outreach. In recent years
the Bush Administration has let two States, Texas and Indiana,
experiment with using private companies to collect and review food
stamp applications and conduct the sensitive eligibility interview. In
my view, these projects are not consistent with current law or good
sense. These experiments have been disastrous to the States' treasuries
but, more importantly, to the vulnerable families and senior citizens
who rely on food stamps and found their applications delayed or
improperly denied. Some people even had their private, personal
information shared inappropriately. The activities involved in
determining eligibility--and ineligibility--for food stamps should be
public functions and should not be governed by profit motive or a
company's responsibility to its shareholders.
While the House voted to include this provision in the conference
agreement, the Senate did not because of opposition from the other
party and a veto threat from President Bush. I regret this outcome and
I am determined to not drop this issue until we have restored the
proper balance to food stamp administration.
But I urge my colleagues to not forget, that separate from this
``privatization'' issue, in recent years States have been experimenting
with a wide variety of changes to food stamp policies and practices
that incorporate new technologies and modern business practices. For
example, some States are using technology to create new pathways to
apply for and retain benefits such as food stamps, health insurance,
and child care, including online applications, online program
redetermination or recertification, phone interviews, and call centers
where changes in circumstances can be reported.
On the one hand, creating ways for families to participate in these
programs without having to travel to a human service office can expand
access and save time and money for States and families alike. In fact,
in this bill we've created a new option for States to accept food stamp
applications over the telephone. No doubt technology offers numerous
opportunities for improved customer service and simpler application and
retention processes.
On the other hand, if these processes are not well-designed,
evaluated, and implemented, then families can face new access barriers.
Moreover, some States are exploring these options at the same time that
they are reducing human service staffing and closing local welfare
offices. These steps can create new access barriers for certain groups
of families and need to be carefully monitored. And I am concerned
because neither States nor USDA appear to be asking the important
questions about what has been the effect of these technological changes
on access for food stamp households, particularly vulnerable
populations like seniors, people with physical or mental disabilities,
or people who do not speak English proficiently. The Government
Accountability Office (GAO) last year published a report that found
that USDA has not sufficiently monitored the States' ``modernization''
efforts in terms of their effects on program access, payment accuracy,
or administrative costs.
So in this bill we have included several provisions to require that
States that are eager to pursue modernized systems are pausing to ask
the necessary questions about how to ensure that the new systems are
designed in such a way that they are effective tools for connecting
eligible families to benefits. In this bill we require USDA to
establish standards for when States are making major changes in program
operations and to monitor the effects on households, especially the
types of households I just mentioned. I urge USDA to do this in a way
that yields useful information so that States can refine and improve
their systems to make them as accessible as possible to all clients.
Another provision requires States to adequately pilot test new
computer systems before they go full-scale. This responds to situations
where States have implemented new computer systems without adequate
testing. This occurred even though some at USDA knew that there were
weaknesses in the system and that serious benefit delays and errors
were likely to occur. We also included a provision the Administration
suggested to require States, instead of households, to repay any over-
issuances that occur because of one of these preventable major systems
failures.
Finally, in light of all of the modernization changes and the
potential access to sensitive information that new players may have, we
strengthened the act's privacy protections to ensure that anyone
receiving confidential information for appropriate program purposes
cannot then share that information with a third party. In addition to
our fears that too many people may have access to private food stamp
information as a result of new technology, we were also concerned that
clients have not been able to access their private records. We heard
about clients in Texas who had their benefits cut off, or who never
were able to obtain benefits, and could not get access to their case
records in order to pursue a claim against the State. That is
unacceptable. We also clarified that despite all of the changes in how
States are storing and maintaining client records, clients can access
these records in litigation. These changes are not in conflict because
confidential records would continue to be unavailable to the general
public and others not having a legitimate reason relating to program
administration.
Another concern I have is about two new provisions that would
disqualify certain people from food stamps for misusing their benefits.
One relates to situations where a recipient of food stamps
intentionally uses food stamp benefits to buy a product, like water,
that is in a disposable container that can be redeemed for cash, then
discards the product and redeems the container in order to obtain the
cash deposit. The other new disqualification addresses individuals who
intentionally purchase food with food stamp benefits in order to resell
the food for a cash profit. I agree that both of these practices are
contrary to the purposes of the food stamp program in assisting people
in obtaining an adequate diet and it's appropriate to address them in
this bill. However, I caution USDA to implement them in a way that
ensures that only those who intended to defraud the system in these
manners be disqualified. I do not want to see innocent people--who may
simply have bought groceries for a neighbor or relative--be caught up
as somehow engaging in fraud under this provision.
My concerns here are not completely without precedent. In this bill
we are revisiting and clarifying a different disqualification rule that
was enacted in 1996, and that has, in fact, ensnared innocent people
and denied food stamp benefits in inappropriate ways. The intent of the
law was to aid law enforcement and prevent criminals who are fleeing to
avoid prosecution from receiving food stamps. Unfortunately, in
practice, the provision has disqualified innocent people who had their
identities stolen, or who have outstanding warrants for minor
infractions that are many years old
[[Page H4654]]
and where the police have no interest in apprehending and prosecuting
the case.
So in this bill we direct USDA to clarify that people should only be
subject to disqualification if they are actively fleeing law
enforcement authorities who are, in fact, interested in bringing them
to justice.
In addition to the very important changes we have made to the food
stamp program and new funding for food banks through TEFAP, the bill
would expand and improve the Fresh Fruit and Vegetable Program under
the Richard B. Russell National School Lunch Act. This program has been
receiving $9 million a year in mandatory funds and operates in 14
States. (Three Indian tribes also operate the program.)
Under the conference agreement, mandatory funding would increase to
$40 million for the 2008-2009 school year and continue to grow. By
2012, the program would be funded at nearly 8 times its current size:
$150 million each year, with annual adjustments for inflation in years
after that.
In addition to providing increased funding, the conference agreement
takes important steps to target program funds to elementary schools
with a significant share of low-income children. Our goal is to provide
free fresh fruits and vegetables to all elementary schools in the
country where more than half of the children are eligible for free or
reduced price school meals. This program should expose a whole new
generation of children to a healthy way of eating.
To sum up, I am extremely proud of the work that our committee and
our Congress have undertaken in the nutrition title of the farm bill.
With these changes, we are building a healthier better fed population.
As a result, we are taking a few important steps towards a stronger
future for our children and our communities.
Mr. ETHERIDGE. Mr. Speaker, I rise again today, in strong support of
the 2008 Farm Bill.
Mr. Speaker, because of a technical glitch, this Farm Bill will have
a new number, but this is the same bill.
This is the same bill that was passed on a bipartisan vote in the
House of Representatives, and an overwhelming vote in the other body,
and it is still, as it was last week, one of the most important pieces
of legislation this Congress has passed this year.
Mr. Speaker, it is critical that we have a stable farm policy in this
Nation, for our farmers, and for every child who participates in a
nutrition program. This is legislation that affects every citizen in
this country.
Again, this is a bill we can all be proud of.
I urge my colleagues to support this legislation.
Mr. KUCINICH. Mr. Speaker, although my colleagues have worked hard to
provide meaningful reform, this bill maintains agriculture policies
that are driving several underlying problems. For example, the single
biggest share of subsidies under this bill goes to corn, which drives
up food prices through corn based ethanol incentives and which
contributes to obesity and diabetes through the overproduction of High
Fructose Corn Syrup.
The bill short-changes conservation programs that can reduce global
warming pollution. It continues to encourage factory farms where our
antibiotics are rendered weak or useless because of overuse on cattle,
where cattle are treated inhumanely, where toxic runoff contributes to
contaminated drinking water, and where employees suffer the highest
rates of workplace injuries of almost any other industry.
Finally, this Farm Bill maintains massive giveaways to corporate
agribusiness instead of helping the vanishing family farmer.
The president has declared his intent to veto this bill because it
does not contain adequate reform. Instead, he asserts that Congress
should pass a one year extension of the status quo and come back with a
farm bill containing more meaningful reform. I agree that the bill
falls far short. In voting against the previous version of the Farm
Bill, my hope was that Congress would take the last remaining
opportunity to construct a farm bill that did not exacerbate the
obesity and diabetes epidemics, that was good for the environment, and
that favored family farmers over corporate agribusiness.
However, there are now no other opportunities to improve the bill in
the near future. At the same time, this Farm Bill contains provisions
that give immediate relief from hunger caused by rising food costs.
Northeast Ohio, where the situation is particularly urgent, simply
cannot wait another year for relief.
Portions of my district, including Lakewood, Fairview Park and Parma,
have experienced a 74% increase in participation in the Food Stamp
Program between 2002 and 2007. Participation in the food stamp program
has increased over the last several years, with an additional 1.3
million people participating in the program in the last year alone.
An unprecedented $10.4 billion over 10 years has been included in the
Nutrition Title of the Farm Bill. Proper nutrition is vital to human
life and a basic human right. Funding for the Nutrition Title will have
an important impact on preventing domestic hunger by increasing the
Food Stamp Program's minimum monthly benefit and The Emergency Food
Assistance Program's mandatory funding level.
There are over 35 million people in our nation who face hunger, 12.5
million of whom are children. Hunger centers in Cleveland, Ohio and
around the nation report that demand for food assistance has risen by
15 to 20 percent over the last year. Increasingly, middle-class
families are turning to food banks to meet their basic nutritional
needs. In a recent survey, 83 percent of food banks reported that they
are experiencing difficulty in meeting the needs of their communities.
The bill increases assistance to food banks by $1.25 billion. This is
an important step to curbing hunger in our nation and upholding the
dignity of our citizens.
I will continue to work with my colleagues to achieve the necessary
reform to make certain that our citizens have access to wholesome and
nutritious foods while preserving our family farms, improving public
health and protecting our environment. But the immediate needs of the
people of Northeast Ohio, combined with the lack of opportunity to
craft a more sustainable alternative, leave me no choice but to vote
for this Farm Bill.
Mr. PETERSON of Minnesota. I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Minnesota (Mr. Peterson) that the House suspend the
rules and pass the bill, H.R. 6124.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. BOEHNER. Mr. Speaker, I object to the vote on the ground that a
quorum is not present and make the point of order that a quorum is not
present.
The SPEAKER pro tempore. Evidently a quorum is not present.
The Sergeant at Arms will notify absent Members.
Pursuant to clause 8 of rule XX, this 15-minute vote on the motion to
suspend the rules on H.R. 6124 will be followed by a 5-minute vote on
the motion to suspend the rules on H. Res. 1194.
The vote was taken by electronic device, and there were--yeas 306,
nays 110, not voting 19, as follows:
[Roll No. 353]
YEAS--306
Abercrombie
Ackerman
Aderholt
Alexander
Allen
Altmire
Arcuri
Baca
Baird
Baldwin
Barrow
Bartlett (MD)
Becerra
Berkley
Berman
Berry
Bishop (GA)
Bishop (NY)
Blunt
Bonner
Bono Mack
Boozman
Boren
Boswell
Boucher
Boustany
Boyd (FL)
Boyda (KS)
Brady (PA)
Brady (TX)
Braley (IA)
Brown (SC)
Brown, Corrine
Brown-Waite, Ginny
Buchanan
Butterfield
Buyer
Camp (MI)
Capito
Capps
Cardoza
Carnahan
Carney
Carson
Cazayoux
Chandler
Childers
Clarke
Clay
Cleaver
Clyburn
Coble
Cohen
Cole (OK)
Conaway
Conyers
Costa
Costello
Courtney
Cramer
Crowley
Cuellar
Cummings
Davis (AL)
Davis (CA)
Davis (IL)
Davis (KY)
Davis, David
Davis, Lincoln
DeFazio
DeGette
Delahunt
DeLauro
Diaz-Balart, L.
Diaz-Balart, M.
Dicks
Dingell
Doggett
Donnelly
Doolittle
Doyle
Drake
Edwards
Ellison
Ellsworth
Emanuel
Emerson
Engel
English (PA)
Eshoo
Etheridge
Everett
Fallin
Farr
Fattah
Filner
Forbes
Fortenberry
Foster
Frank (MA)
Gallegly
Giffords
Gilchrest
Gingrey
Gohmert
Gonzalez
Goodlatte
Gordon
Graves
Green, Al
Green, Gene
Grijalva
Gutierrez
Hall (NY)
Hall (TX)
Hare
Hastings (FL)
Hastings (WA)
Hayes
Herger
Herseth Sandlin
Higgins
Hill
Hinchey
Hinojosa
Hirono
Hodes
Holden
Holt
Honda
Hooley
Hoyer
Hulshof
Inslee
Israel
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson (GA)
Johnson (IL)
Johnson, E. B.
Jones (NC)
Jones (OH)
Kagen
Kanjorski
Kaptur
Kildee
Kilpatrick
King (IA)
Kingston
Klein (FL)
Kline (MN)
Kucinich
Kuhl (NY)
LaHood
Lampson
Langevin
Larsen (WA)
Larson (CT)
Latham
LaTourette
Latta
Lee
Levin
Lewis (KY)
Lipinski
Loebsack
Lofgren, Zoe
Lowey
Lucas
Lynch
Mahoney (FL)
Maloney (NY)
Manzullo
Markey
Marshall
Matsui
McCarthy (NY)
McCaul (TX)
McCollum (MN)
McCotter
McGovern
McHugh
McIntyre
McMorris Rodgers
McNerney
McNulty
Meek (FL)
Meeks (NY)
Melancon
Michaud
Miller (MI)
Miller (NC)
Miller, George
Mollohan
Moore (KS)
Moran (VA)
Murphy (CT)
Murphy, Patrick
Murphy, Tim
Murtha
Musgrave
Nadler
[[Page H4655]]
Napolitano
Neal (MA)
Neugebauer
Oberstar
Obey
Olver
Ortiz
Pallone
Pascrell
Pastor
Payne
Pearce
Pelosi
Perlmutter
Peterson (MN)
Pickering
Platts
Poe
Pomeroy
Porter
Price (NC)
Putnam
Radanovich
Rahall
Rangel
Regula
Rehberg
Renzi
Reyes
Reynolds
Richardson
Rodriguez
Rogers (AL)
Rogers (KY)
Rogers (MI)
Ross
Rothman
Roybal-Allard
Ruppersberger
Ryan (OH)
Salazar
Sali
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schiff
Schwartz
Scott (VA)
Serrano
Sestak
Shea-Porter
Sherman
Shimkus
Shuler
Shuster
Simpson
Sires
Skelton
Slaughter
Smith (NE)
Smith (TX)
Snyder
Solis
Souder
Space
Speier
Spratt
Stupak
Sutton
Tanner
Tauscher
Taylor
Thompson (CA)
Thompson (MS)
Thornberry
Tierney
Towns
Tsongas
Turner
Udall (CO)
Udall (NM)
Upton
Van Hollen
Velazquez
Visclosky
Walberg
Walz (MN)
Wasserman Schultz
Waters
Watson
Watt
Waxman
Weiner
Welch (VT)
Weller
Whitfield (KY)
Wilson (OH)
Wittman (VA)
Woolsey
Wu
Wynn
Yarmuth
NAYS--110
Akin
Bachmann
Bachus
Barrett (SC)
Barton (TX)
Bean
Biggert
Bilbray
Bishop (UT)
Blackburn
Blumenauer
Boehner
Broun (GA)
Burgess
Burton (IN)
Calvert
Campbell (CA)
Cannon
Cantor
Capuano
Castle
Chabot
Cooper
Cubin
Culberson
Davis, Tom
Deal (GA)
Dent
Dreier
Duncan
Ehlers
Feeney
Ferguson
Flake
Fossella
Foxx
Franks (AZ)
Frelinghuysen
Garrett (NJ)
Gerlach
Goode
Granger
Harman
Heller
Hensarling
Hunter
Inglis (SC)
Issa
Johnson, Sam
Jordan
Keller
Kind
King (NY)
Kirk
Knollenberg
Lamborn
Lewis (CA)
Linder
LoBiondo
Lungren, Daniel E.
Mack
Marchant
Matheson
McCarthy (CA)
McCrery
McDermott
McHenry
McKeon
Mica
Miller (FL)
Miller, Gary
Mitchell
Moore (WI)
Moran (KS)
Myrick
Nunes
Pence
Peterson (PA)
Petri
Pitts
Price (GA)
Pryce (OH)
Ramstad
Reichert
Rohrabacher
Roskam
Royce
Ryan (WI)
Saxton
Scalise
Schmidt
Sensenbrenner
Sessions
Shadegg
Shays
Smith (NJ)
Smith (WA)
Stark
Stearns
Tancredo
Terry
Tiahrt
Tiberi
Wamp
Weldon (FL)
Westmoreland
Wilson (NM)
Wilson (SC)
Wolf
Young (FL)
NOT VOTING--19
Andrews
Bilirakis
Carter
Castor
Crenshaw
Gillibrand
Hobson
Hoekstra
Kennedy
Lewis (GA)
Paul
Ros-Lehtinen
Rush
Scott (GA)
Sullivan
Walden (OR)
Walsh (NY)
Wexler
Young (AK)
{time} 1333
Mr. BACHUS changed his vote from ``yea'' to ``nay.''
Messrs. WELLER of Illinois, BUYER, HALL of Texas, MILLER of North
Carolina, PEARCE, Ms. GINNY BROWN-WAITE of Florida, and Mr. TURNER
changed their vote from ``nay'' to ``yea.''
So (two-thirds being in the affirmative) the rules were suspended and
the bill was passed.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
Stated for:
Mr. CARTER. Mr. Speaker, on rollcall No. 353, On Motion to Suspend
the Rules and Pass H.R. 6124, to provide for the continuation of
agricultural and other programs of the Department of Agriculture
through the fiscal year 2012, and for other purposes, I was unavoidably
absent due to a family medical emergency. Had I been present, I would
have voted ``yea.''
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