[Congressional Record (Bound Edition), Volume 147 (2001), Part 13]
[House]
[Pages 18370-18396]
[From the U.S. Government Publishing Office, www.gpo.gov]



                               AMENDMENTS

  Under clause 8 of rule XVIII, proposed amendments were submitted as 
follows:

                               H.R. 2646

                        Offered By: Mr. Ackerman

       Amendment No. 2: At the end of title IX (page 354, after 
     line 16), insert the following new section:

     SEC. __. UNLAWFUL STOCKYARD PRACTICES INVOLVING NONAMBULATORY 
                   LIVESTOCK.

       Title III of the Packers and Stockyards Act, 1921, (7 
     U.S.C. 201 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 318. UNLAWFUL STOCKYARD PRACTICES INVOLVING 
                   NONAMBULATORY LIVESTOCK.

       ``(a) Definitions.--In this section:
       ``(1) Humanely euthanize.--The term `humanely euthanize' 
     means to kill an animal by mechanical, chemical, or other 
     means that immediately render the animal unconscious, with 
     this state remaining until the animal's death.
       ``(2) Nonambulatory livestock.--The term `nonambulatory 
     livestock' means any livestock that is unable to stand and 
     walk unassisted.
       ``(b) Unlawful Practices.--
       ``(1) In general.--Except as provided in paragraph (2), it 
     shall be unlawful for any stockyard owner, market agency, or 
     dealer to buy, sell, give, receive, transfer, market, hold, 
     or drag any nonambulatory livestock unless the nonambulatory 
     livestock has been humanely euthanized.
       ``(2) Exceptions.--
       ``(A) Non-gipsa farms.--Paragraph (1) shall not apply to 
     any farm the animal care practices of which are not subject 
     to the authority of the Grain Inspection, Packers, and 
     Stockyards Administration.
       ``(B) Veterinary care.--Paragraph (1) shall not apply in a 
     case in which nonambulatory livestock receive veterinary care 
     intended to render the livestock ambulatory.

[[Page 18371]]

       ``(c) Application of Prohibition.--Subsection (b) shall 
     apply beginning one year after the date of the enactment of 
     the Farm Security Act of 2001. By the end of such period, the 
     Secretary shall promulgate regulations to carry out this 
     section.''.

                               H.R. 2646

                        Offered By: Mr. Andrews

       Amendment No. 3: At the end of subtitle F of title II, 
     insert the following:

     SEC. __. PROVISION OF ASSISTANCE FOR REPAUPO CREEK TIDE GATE 
                   AND DIKE RESTORATION PROJECT, NEW JERSEY.

       (a) In General.--Notwithstanding section 403 of the 
     Agricultural Credit Act of 1978 (16 U.S.C. 2203), the 
     Secretary of Agriculture, acting through the Natural 
     Resources Conservation Service, shall provide assistance for 
     planning and implementation of the Repaupo Creek Tide Gate 
     and Dike Restoration Project in the State of New Jersey.
       (b) Funding.--Of the funds available for the Emergency 
     Watershed Protection Program, not to exceed $600,000 shall be 
     available to the Secretary of Agriculture to carry out 
     subsection (a).

                               H.R. 2646

                        Offered By: Mr. Bereuter

    [References are to the amendment in the nature of a substitute]

       Amendment No. 4: In section 212(a)--
       (1) strike ``and'' at the end of paragraph (1);
       (2) strike the last period at the end of paragraph (2) and 
     insert ``; and''; and
       (3) add at the end the following:
       (3) by adding after and below the end the following flush 
     sentence:

     ``Notwithstanding the preceding sentence (but subject to 
     subsection (c)), the Secretary may not include in the program 
     established under this subchapter any land that has not been 
     in production for at least 4 years, unless the land is in the 
     program as of the effective date of this sentence.''.

                               H.R. 2646

                        Offered By: Mr. Bereuter

   [Page and line numbers refer to the amendment in the nature of a 
                         substitute, COMBES.01]

       Amendment No. 5: At the end of subtitle B of title I (page 
     66, after line 3), insert the following new section:

     SEC. 132. ALTERNATIVE LOAN RATES UNDER FLEXIBLE FALLOW 
                   PROGRAM.

       (a) Definition of Total Planted Acreage.--In this section, 
     the term ``total planted acreage'' means the cropland acreage 
     of a producer that for the 2000 crop year was--
       (1) planted to a covered commodity;
       (2) prevented from being planted to a covered commodity; or
       (3) fallow as part of a fallow rotation practice with 
     respect to a covered commodity, as determined by the 
     Secretary.
       (b) Election To Participate.--In lieu of receiving a loan 
     rate under section 122 with respect to production eligible 
     for a loan under section 121, a producer may elect to 
     participate in a flexible fallow program for any of the 2002 
     through 2011 crops under which annually--
       (1) the producer determines which acres of the total 
     planted acreage are assigned to a specific covered commodity;
       (2) the producer determines--
       (A) the projected percentage reduction rate of production 
     of the specific covered commodity based on the acreage 
     assigned to the covered commodity under paragraph (1); and
       (B) the acreage of the total planted acreage of the 
     producer to be set aside under subparagraph (A), regardless 
     of whether the acreage is on the same farm as the acreage 
     planted to the specific covered commodity;
       (3) based on the projected percentage reduction rate of 
     production as a result of the acreage set aside under 
     paragraph (2), the producer receives the loan rate for each 
     covered commodity produced by the producer, as determined 
     under subsection (c); and
       (4) the acreage planted to covered commodities for harvest 
     and set aside under this section is limited to the total 
     planted acreage of the producer.
       (c) Loan Rates Under Program.--
       (1) In general.--Subject to paragraphs (2) and (3), in the 
     case of a producer of a covered commodity that elects to 
     participate in the flexible fallow program under this 
     section, the loan rate for a marketing assistance loan under 
     section 121 for a crop of the covered commodity shall be 
     based on the projected percentage reduction rate of 
     production determined by the producer under subsection 
     (b)(2), in accordance with the following table:

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Projected Percentage                                                                                                         Upland Cotton Loan Rate ($/         Rice Loan Rate ($/
         Reduction Rate           Corn commodity Rate ($/bushel)    Wheat Loan Rate ($/bushel)     Soybean Loan Rate ($/bushel)               pound)                      hundredweight)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                         0%                             1.89                            2.75                            4.72                          0.5192                            6.50
                         1%                             1.91                            2.78                            4.77                          0.5268                            6.60
                         2%                             1.93                            2.81                            4.81                          0.5344                            6.70
                         3%                             1.95                            2.83                            4.86                          0.5420                            6.80
                         4%                             1.97                            2.86                            4.91                          0.5496                            6.90
                         5%                             1.99                            2.89                            4.96                          0.5572                            7.00
                         6%                             2.01                            2.92                            5.01                          0.5648                            7.10
                         7%                             2.03                            2.95                            5.06                          0.5724                            7.20
                         8%                             2.05                            2.98                            5.11                          0.5800                            7.30
                         9%                             2.07                            3.01                            5.16                          0.5876                            7.40
                        10%                             2.09                            3.04                            5.21                          0.5952                            7.50
                        11%                             2.12                            3.08                            5.29                          0.6028                            7.60
                        12%                             2.15                            3.13                            5.36                          0.6104                            7.70
                        13%                             2.18                            3.17                            5.43                          0.6180                            7.80
                        14%                             2.21                            3.22                            5.51                          0.6256                            7.90
                        15%                             2.24                            3.27                            5.58                          0.6332                            8.00
                        16%                             2.28                            3.31                            5.65                          0.6408                            8.10
                        17%                             2.31                            3.36                            5.73                          0.6484                            8.20
                        18%                             2.34                            3.41                            5.81                          0.6560                            8.30
                        19%                             2.37                            3.46                            5.88                          0.6636                            8.40
                        20%                             2.41                            3.51                            5.96                          0.6712                            8.50
                        21%                             2.44                            3.55                            6.04                          0.6788                            8.60
                        22%                             2.47                            3.60                            6.12                          0.6864                            8.70
                        23%                             2.51                            3.65                            6.19                          0.6940                            8.80
                        24%                             2.54                            3.70                            6.27                          0.7016                            8.90
                        25%                             2.57                            3.75                            6.35                          0.7092                            9.00
                        26%                             2.61                            3.80                            6.43                          0.7168                            9.10
                        27%                             2.64                            3.85                            6.51                          0.7244                            9.20
                        28%                             2.68                            3.90                            6.60                          0.7320                            9.30
                        29%                             2.71                            3.95                            6.68                          0.7396                            9.40
                        30%                             2.75                            4.01                            6.76                          0.7472                           9.50.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

       (2) County average yields.--
       (A) In general.--The loan rate for a marketing assistance 
     loan made to a producer for a crop of a covered commodity 
     under paragraph (1) shall apply with respect to the 
     production of the crop of the covered commodity by the 
     producer in a quantity that does not exceed the historical 
     county average yield for the covered commodity established by 
     the National Agricultural Statistics Service, adjusted for 
     long-term yield trends.
       (B) Excess production.--The loan rate for a marketing 
     assistance loan made to a producer for a crop of a covered 
     commodity under paragraph (1) with respect to the production 
     of the crop of the covered commodity in excess of the 
     historical county average yield for the covered commodity 
     described in subparagraph (A) shall be equal to the loan rate 
     established for a 0% projected percentage reduction rate for 
     the covered commodity under paragraph (1).
       (C) Disasters.--
       (i) In general.--If the production of a crop of a covered 
     commodity by a producer is less than the historical county 
     average yield for the covered commodity described in 
     subparagraph (A) as a result of damaging weather, an 
     insurable peril, or related condition, the producer may 
     receive a payment on the lost production that shall equal the 
     difference between--

       (I) the maximum quantity of covered commodity that could 
     have been designated for the loan rate authorized under this 
     section for the producer; and
       (II) the quantity of covered commodity the producer was 
     able to produce and commercially market.

       (ii) Calculation of payment.--The payment described in 
     clause (i) shall be equal to the loan deficiency payment the 
     producer could have received on the lost production on any 
     date, selected by the producer, on which a loan deficiency 
     payment was available for that crop of the covered commodity.
       (3) Other covered commodities.--In the case of a producer 
     of a covered commodity not covered by paragraphs (1) and (2) 
     that elects to participate in the flexible fallow program 
     under this section, the loan rate for a marketing assistance 
     loan under section 121 for the crop of the covered commodity 
     shall be based on--

[[Page 18372]]

       (A) in the case of grain sorghum, barley, and oats, such 
     level as the Secretary determines is fair and reasonable in 
     relation to the rate that loans are made available for corn, 
     taking into consideration the feeding value of the commodity 
     in relation to corn;
       (B) in the case of extra long staple cotton, such level as 
     the Secretary determines is fair and reasonable; and
       (C) in the case of oilseeds other than soybeans, such level 
     as the Secretary determines is fair and reasonable in 
     relation to the loan rate available for soybeans, except that 
     the rate for the oilseeds (other than cottonseed) shall not 
     be less than the rate established for soybeans on a per-pound 
     basis for the same crop.
       (d) Conservation Use of Set-Aside Acreage.--To be eligible 
     for a loan rate under this section, a producer shall devote 
     all of the acreage set aside under this section to a 
     conservation use approved by the Secretary and manage the 
     set-aside acreage using management practices designed to 
     enhance soil conservation and wildlife habitat. The Secretary 
     shall prescribe the approved management practices for a 
     county in consultation with the relevant State technical 
     committee.
       (1) Limited Grazing.--The Secretary may permit limited 
     grazing on the set-aside acreage when the grazing is 
     incidental to the gleaning of crop residues on adjacent 
     fields.
       (e) Certification.--To be eligible to participate in the 
     flexible fallow program for any of the 2002 through 2011 
     crops, a producer shall certify to the Secretary (by farm 
     serial number) the total planted acreage assigned, planted, 
     and set aside with respect to each covered commodity.

                               H.R. 2646

                        Offered By: Mr. Bereuter

       Amendment No. 6: At the end of title IX, insert the 
     following new section:

     SEC. __. AUTHORIZATION FOR ADDITIONAL STAFF AND FUNDING FOR 
                   THE GRAIN INSPECTION, PACKERS AND STOCKYARDS 
                   ADMINISTRATION.

       There are authorized to be appropriated such sums as are 
     necessary to enhance the capability of the Grain Inspection, 
     Packers and Stockyards Administration to monitor, 
     investigate, and pursue the competitive implications of 
     structural changes in the meat packing industry. Sums are 
     specifically earmarked to hire litigating attorneys to allow 
     the Grain Inspection, Packers and Stockyards Administration 
     to more comprehensively and effectively pursue its 
     enforcement activities.

                               H.R. 2646

                        Offered By: Mr. Bereuter

       Amendment No. 7: At the end of title V, insert the 
     following:

     SEC. __. AUTHORITY TO MAKE BUSINESS AND INDUSTRY GUARANTEED 
                   LOANS FOR FARMER-OWNED PROJECTS THAT ADD VALUE 
                   TO OR PROCESS AGRICULTURAL PRODUCTS.

       Section 310B(a)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1932(a)(1)) is amended by inserting 
     ``(and in areas other than rural communities, in the case of 
     insured loans, if a majority of the project involved is owned 
     by individuals who reside and have farming operations in 
     rural communities, and the project adds value to or processes 
     agricultural commodities)'' after ``rural communities''.

                               H.R. 2646

                       Offered By: Mr. Blumenauer

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 8: At the end of title IX (page 354, after 
     line 16), insert the following new section:

     SEC. 932. PROHIBITION ON INTERSTATE MOVEMENT OF ANIMALS FOR 
                   ANIMAL FIGHTING.

       (a) Prohibition on Interstate Movement of Animals for 
     Animal Fighting.--Section 26(d) of the Animal Welfare Act (7 
     U.S.C. 2156(d)) is amended to read as follows:
       ``(d) Activities Not Subject to Prohibition.--This section 
     does not apply to the selling, buying, transporting, or 
     delivery of an animal in interstate or foreign commerce for 
     any purpose, so long as the purpose does not include 
     participation of the animal in an animal fighting venture.''.
       (b) Effective Date.--The amendment made by this section 
     take effect 30 days after the date of the enactment of this 
     Act.
       In the table of contents, after the item relating to 
     section 931 (page 8, before line 1), insert the following new 
     item:

Sec. 932. Prohibition on interstate movement of animals for animal 
              fighting.

                               H.R. 2646

                       Offered By: Mr. Blumenauer

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 9: At the end of title IX (page 354, after 
     line 16), insert the following new section:

     SEC. 932. PENALTIES AND FOREIGN COMMERCE PROVISIONS OF THE 
                   ANIMAL WELFARE ACT.

       (a) Penalties and Foreign Commerce Provisions of the Animal 
     Welfare Act.--Section 26 of the Animal Welfare Act (7 U.S.C. 
     2156) is amended--
       (1) in subsection (e)--
       (A) by inserting ``Penalties.--'' after ``(e)'';
       (B) by striking ``$5,000'' and inserting ``$15,000''; and
       (C) by striking ``1 year'' and inserting ``2 years''; and
       (2) in subsection (g)(2)(B), by inserting at the end before 
     the semicolon the following: ``or from any State into any 
     foreign country''.
       (b) Effective Date.--The amendments made by this section 
     take effect 30 days after the date of the enactment of this 
     Act.
       In the table of contents, after the item relating to 
     section 931 (page 8, before line 1), insert the following new 
     item:

Sec. 932. Penalties and foreign commerce provisions of the Animal 
              Welfare Act.

                               H.R. 2646

                        Offered By: Mr. Boehlert

       Amendment No. 10: Strike title II and insert the following:

                         TITLE II--CONSERVATION

                Subtitle A--Farm and Ranch Preservation

     SEC. 201. FARMLAND PROTECTION PROGRAM.

       Section 388 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (16 U.S.C. 3830 note) is amended to read 
     as follows:

     ``SEC. 388. FARMLAND PROTECTION PROGRAM.

       ``(a) Establishment and Purpose.--The Secretary of 
     Agriculture (in this section referred to as the 
     ``Secretary'') shall carry out a farmland protection program 
     for the purpose of protecting farm and ranch lands with 
     prime, unique, or other productive uses and agricultural 
     lands that contain historic or archaeological resources, by 
     limiting the nonagricultural uses of the lands. Under the 
     program, the Secretary may provide matching grants to 
     eligible entities described in subsection (d) to facilitate 
     their purchase of--
       ``(1) permanent conservation easements in such lands; or
       ``(2) conservation easements or other interests in such 
     lands when the lands are subject to a pending offer from a 
     State or local government.
       ``(b) Conservation Plan.--Any highly erodible land for 
     which a conservation easement or other interest is purchased 
     using funds made available under this section shall be 
     subject to the requirements of a conservation plan that 
     requires, at the option of the Secretary of Agriculture, the 
     conversion of the cropland to less intensive uses.
       ``(c) Maximum Federal Share.--The Federal share of the cost 
     of purchasing a conservation easement under subsection (a)(1) 
     may not exceed 50 percent of the total cost of purchasing the 
     easement.
       ``(d) Eligible Entity Defined.--In this section, the term 
     `eligible entity' means any of the following:
       ``(1) An agency of a State or local government.
       ``(2) A federally recognized Indian tribe.
       ``(3) Any organization that is organized for, and at all 
     times since its formation has been operated principally for, 
     1 or more of the conservation purposes specified in clause 
     (i), (ii), or (iii) of section 170(h)(4)(A) of the Internal 
     Revenue Code of 1986 and--
       ``(A) is described in section 501(c)(3) of the Code;
       ``(B) is exempt from taxation under section 501(a) of the 
     Code; and
       ``(C) is described in paragraph (2) of section 509(a) of 
     the Code, or paragraph (3) of such section, but is controlled 
     by an organization described in paragraph (2) of such 
     section.
       ``(e) Grant Factors.--Among the factors the Secretary shall 
     consider in making grants under this section, the Secretary 
     shall consider the extent to which States are encouraging or 
     adopting measures to protect farmland and ranchland from 
     conversion to non-agricultural uses.
       ``(f) Title; Enforcement.--An eligible entity may hold 
     title to a conservation easement purchased using grant funds 
     provided under subsection (a)(1) and enforce the conservation 
     requirements of the easement.
       ``(g) State Certification.--As a condition of the receipt 
     by an eligible entity of a grant under subsection (a)(1), the 
     attorney general of the State in which the conservation 
     easement is to be purchased using the grant funds shall 
     certify that the conservation easement to be purchased is in 
     a form that is sufficient, under the laws of the State, to 
     achieve the purposes of the farmland protection program and 
     the terms and conditions of the grant.
       ``(h) Funding.--
       ``(1) Use of commodity credit corporation funds.--The 
     Secretary shall use not more than $100,000,000 in fiscal year 
     2002, $200,000,000 in fiscal year 2003, $350,000,000 in 
     fiscal year 2004, $450,000,000 in fiscal year 2005, and 
     $500,000,000 in each of fiscal years 2006 through 2011, of 
     the funds of the Commodity Credit Corporation to carry out 
     this section.
       ``(2) Limitation on technical assistance.--To provide 
     technical assistance to carry out this section, the Secretary 
     may use not more than 10 percent of the amount

[[Page 18373]]

     made available for any fiscal year under paragraph (1).
       ``(i) Grants and Assistance To Enhance Farm Viability.--For 
     each year for which funds are available for the program under 
     this section, the Secretary may use not more than $10,000,000 
     to provide matching market development grants and technical 
     assistance to farm and ranch operators who participate in the 
     program. As a condition of receiving such a grant, the 
     grantee shall provide an amount equal to the grant from non-
     Federal sources.''.

     SEC. 202. SOCIALLY DISADVANTAGED FARMERS.

       Section 2501(a)(3) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 2279(a)(3)) is amended--
       (1) by striking ``$10,000,000'' and inserting ``$15,000,000 
     from the Commodity Credit Corporation''; and
       (2) by adding at the end the following: ``Any agency of the 
     Department of Agriculture may participate jointly in any 
     grant or contract entered in furtherance of the objectives of 
     this section if it agreed that the objectives of the grant or 
     contract will further the authorized programs of the 
     contributing agency.''.

         Subtitle B--Environmental Stewardship On Working Lands

     SEC. 211. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

       Section 1240 of the Food Security Act of 1985 (16 U.S.C. 
     3839aa) is amended--
       (1) by striking ``to--'' and all that follows through 
     ``provides'' and inserting ``to provide'';
       (2) inserting ``air'' after ``that face the most serious 
     threats to'';
       (3) by redesignating the subparagraphs (A) through (D) that 
     follow the matter amended by paragraph (2) of this section as 
     paragraphs (1) through (4), respectively;
       (4) by moving each of such redesignated provisions 2 ems to 
     the left; and
       (5) by striking ``farmers and ranchers'' each place it 
     appears and inserting ``producers''.

     SEC. 212. DEFINITIONS.

       Section 1240A of the Food Security Act of 1985 (16 U.S.C. 
     3839aa-1) is amended--
       (1) in paragraph (1)--
       (A) by inserting ``nonindustrial private forest land,'' 
     before ``and other land''; and
       (B) by striking all after ``poses a serious threat to'' and 
     inserting ``air, soil, water, or related resources.''; and
       (2) in paragraph (4), by inserting ``, including 
     nonindustrial private forestry'' before the period.

     SEC. 213. ESTABLISHMENT AND ADMINISTRATION.

       (a) Reauthorization.--Section 1240B(a)(1) of the Food 
     Security Act of 1985 (16 U.S.C. 3839aa-2(a)(1)) is amended by 
     striking ``2002'' and inserting ``2011''.
       (b) Incentive Payments.--Section 1240B of such Act (16 
     U.S.C. 3839aa-2) is amended by adding at the end the 
     following:
       ``(h) Watershed Quality Incentive Program.--
       ``(1) In general.--The Secretary shall create a program to 
     improve water quality in individual watersheds nationwide. 
     Except as otherwise provided in this subsection, the program 
     shall be administered in accordance with the terms of the 
     Environmental Quality Incentives Program.
       ``(2) Consistency with watershed plan.--In allocating funds 
     under this subsection, the Secretary shall consider the 
     extent to which an application for the funds is consistent 
     with a locally developed watershed plan, in addition to the 
     other factors established by section 1240C.
       ``(3) Contracts.--The Secretary shall enter into contracts 
     in accordance with this section with producers whose 
     activities affect water quality, including the quality of 
     public drinking water supplies, to implement and maintain 
     nutrient management, pest management, soil erosion practices, 
     and other conservation activities that protect water quality 
     and protect human health. The contracts shall--
       ``(A) describe the nutrient management, pest management or 
     soil loss practices to be implemented, maintained, or 
     improved;
       ``(B) contain a schedule of implementation;
       ``(C) address water quality priorities of the watershed in 
     which the operation is located to the greatest extent 
     possible; and
       ``(D) contain such other terms as the Secretary determines 
     to be appropriate.
       ``(4) Voluntary water quality benefits evaluation.--On 
     approval of the producer, the Secretary may include the cost 
     of water quality benefits evaluation as part of a contract 
     entered into under this section.
       ``(5) Drinking water suppliers pilot program.--
       ``(A) In general.--The Secretary shall establish a pilot 
     program in 15 watersheds to improve water quality in 
     cooperation with local water utilities.
       ``(B) Pilot program.--The Secretary shall select the 
     watersheds and make available funds to be allocated to 
     producers in partnership with drinking water utilities in the 
     watersheds, provided that drinking water utilities measure 
     water quality and target incentives payments to improve water 
     quality.
       ``(6) Nutrient reduction pilot program.--The Secretary 
     shall use up to $100,000,000 annually of the funds provided 
     under this subsection in 5 impaired watersheds each year to 
     provide incentives for agricultural producers to reduce 
     nitrogen and phosphorous applications by at least 15 percent 
     below the average rates used by comparable farms in the 
     State. Incentive payments shall reflect the extent to which 
     producers reduce nitrogen and phosphorous applications.
       ``(7) Recognition of state efforts.--The Secretary shall 
     recognize the financial contribution of States, among other 
     factors, during the allocation of funding under this 
     subsection.''.
       (c) Non-Federal Assistance.--Section 1240B(g) of such Act 
     (16 U.S.C. 3839aa-2(g)) is amended--
       (1) by inserting ``drinking water utility'' after 
     ``forestry agency,''; and
       (2) by inserting ``, cost-share payments, and incentives'' 
     after ``technical assistance''.

     SEC. 214. EVALUATION OF OFFERS AND PAYMENTS.

       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 OFFERS AND PAYMENTS.

       ``The Secretary shall establish a ranking process and 
     benefits index to prioritize technical assistance, cost-share 
     payments, and incentives payments to producers to maximize 
     soil and water quality and wildlife habitat and other 
     environmental benefits per dollar expended. The ranking 
     process shall be weighted to ensure that technical 
     assistance, cost-share payments, and incentives are provided 
     to small or socially-disadvantaged farmers (as defined in 
     section 8(a)(5) of the Small Business Act). The Secretary 
     shall consult with local, State, and Federal public and 
     private entities to develop the ranking process and benefits 
     index.''.

     SEC. 215. LIMITATION ON PAYMENTS.

       Section 1240G of the Food Security Act of 1985 (16 U.S.C. 
     3839aa-7) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``$10,000'' and inserting 
     ``$30,000''; and
       (B) in paragraph (2), by striking ``$50,000'' and inserting 
     ``$150,000'';
       (2) in subsection (b)--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(3) to share the cost of digesters.''; and
       (3) by striking subsection (c).

     SEC. 216. REAUTHORIZATION OF FUNDING.

       Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 
     3841(a)) is amended by striking ``2002'' and inserting 
     ``2011''.

     SEC. 217. FUNDING.

       Section 1241(b)(1) of the Food Security Act of 1985 (16 
     U.S.C. 3841(b)(1)) is amended--
       (1) by striking ``$130,000,000'' and all that follows 
     through ``2002'' and inserting ``$200,000,000 for fiscal year 
     2001, $1,000,000,000 in fiscal years 2002 and 2003, and 
     $1,000,000,000 for each of fiscal years 2004 through 2011'';
       (2) by inserting ``(other than under section 1240B(h))'' 
     before the period; and
       (3) by adding at the end the following: ``In addition, the 
     Secretary shall make available for the program under section 
     1240B(h), $450,000,000 for fiscal years 2002 and 2003, 
     $500,000,000 for fiscal year 2004, $650,000,000 for fiscal 
     year 2005, and $700,000,000 for each of fiscal years 2006 
     through 2011, to provide incentive payments to producers who 
     implement watershed quality incentive contracts.''.

     SEC. 218. ALLOCATION FOR LIVESTOCK AND OTHER CONSERVATION 
                   PRIORITIES.

       (a) In General.--Section 1241(b)(2) of the Food Security 
     Act of 1985 (16 U.S.C. 3841(b)(2)) is amended--
       (1) by striking ``2002'' and inserting ``2011''; and
       (2) by inserting ``(other than under section 1240B(h))'' 
     before ``shall''.
       (b) Agricultural Sustainability.--Section 1241(b) of such 
     Act (16 U.S.C. 3841(b)) is amended by adding at the end the 
     following:
       ``(3) Targeting of practices to promote agricultural 
     sustainability.--
       ``(A) To the maximum extent practicable, the Secretary 
     shall attempt to dedicate at least 10 percent of the funding 
     in this subsection to each of the following practices to 
     promote agricultural sustainability:
       ``(i) Managed grazing.
       ``(ii) Innovative manure management.
       ``(iii) Surface and groundwater conservation through 
     improved irrigation efficiency and other practices.
       ``(iv) Pesticide and herbicide reduction, including 
     practices that reduce direct human exposure.
       ``(B) Definitions.--In subparagraph (A):
       ``(i) Managed grazing.--The term `managed grazing' means 
     practices which frequently rotate animals on grazing lands to 
     enhance plant health, limit soil erosion, protect ground and 
     surface water quality, or benefit wildlife.
       ``(ii) Innovative manure management.--The term `innovative 
     manure management' means manure management technologies 
     which--

       ``(I) eliminate the discharge of animal waste to surface 
     and groundwaters through direct discharge, seepage, and 
     runoff;
       ``(II) substantially eliminate atmospheric emissions of 
     ammonia;
       ``(III) substantially eliminate the emission of odor;

[[Page 18374]]

       ``(IV) substantially eliminate the release of disease-
     transmitting vectors and pathogens;
       ``(V) substantially eliminate nutrient heavy metal 
     contamination; or
       ``(VI) encourage reprocessing and cost-effective 
     transportation of animal waste.

       ``(ii) Improved irrigation efficiency.--The term `improved 
     irrigation efficiency' means the use of new or upgraded 
     irrigation systems that conserve water, including the use 
     of--

       ``(I) spray jets or nozzles which improve water 
     distribution efficiency;
       ``(II) irrigation well meters;
       ``(III) surge valves and surge irrigation systems; and
       ``(IV) conversion of equipment from gravity or flood 
     irrigation to sprinkler or drip irrigation, including center 
     pivot systems.''.

              Subtitle C--Preservation of Wildlife Habitat

     SEC. 221. WILDLIFE HABITAT INCENTIVES PROGRAM.

       (a) Extension and Funding Increase.--Section 387(c) of the 
     Federal Agriculture Improvement and Reform Act of 1996 (16 
     U.S.C. 3836a) is amended to read as follows:
       ``(c) Funding.--To carry out this section, there shall be 
     made available $200,000,000 for fiscal years 2002 and 2003, 
     $350,000,000 for fiscal year 2004, $450,000,000 for fiscal 
     year 2005, $500,000,000 for each of the fiscal years 2006 
     through fiscal year 2009, $400,000,000 for fiscal year 2010, 
     and $200,000,000 for fiscal year 2011.''.
       (b) Additional Incentives for Wildlife Conservation.--
     Section 387(b) of such Act (16 U.S.C. 3836(b)) is amended by 
     inserting ``, or for other costs relating to wildlife 
     conservation,'' before ``approved by the Secretary''.
       (c) Program Modifications.--Section 387 of such Act (16 
     U.S.C. 3836a) is amended by adding at the end the following:
       ``(d) Incentive Payments.--The Secretary may provide 
     incentive payments to landowners in exchange for the 
     implementation of land management practices designed to 
     create or preserve wildlife habitat. The payments may be in 
     an amount and at a rate determined by the Secretary to be 
     necessary to encourage a landowner to engage in the practice.
       ``(e) Funding Priority.--The Secretary shall give priority 
     to landowners whose lands contain important habitat for 
     imperiled species or habitat identified by State conservation 
     plans, where available.
       ``(f) Consultation.--To the extent practicable, the 
     Secretary shall consult with local, State, Federal and 
     private experts, as considered appropriate by the Secretary, 
     to ensure that projects under this section maximize 
     conservation benefits and are regionally equitable.
       ``(g) Acquisition of Easements.--Beginning with fiscal year 
     2003, not more than 10 percent of the funds available shall 
     be used to acquire permanent easements, provided that land 
     enrolled in an easement is not land taken out of agricultural 
     production''.

     SEC. 222. WETLANDS RESERVE PROGRAM.

       (a) Enrollment Authority.--Section 1237(b)(1) of the Food 
     Security Act of 1985 (16 U.S.C. 3837(b)(1)) is amended to 
     read as follows:
       ``(1) Enrollment.--The Secretary shall enroll in the 
     wetlands reserve program a total of not less than 250,000 
     acres in fiscal years 2002 and 2003, and not less than 
     250,000 acres in each of fiscal years 2004 through 2011.''.
       (b) Regional Equity.--Section 1237 of such Act (16 U.S.C. 
     3837) is amended by adding at the end the following:
       ``(h) Not later than 60 days after the date of the 
     enactment of this sentence, the Secretary shall devise a plan 
     to promote wetlands conservation in all regions where 
     opportunities exist for wetlands restoration.''.

     SEC. 223. CONSERVATION RESERVE PROGRAM.

       (a) Enrollment Authority.--Section 1231 of the Food 
     Security Act of 1985 (16 U.S.C. 3831) is amended--
       (1) in subsection (a)--
       (A) by striking ``2002'' and inserting ``2011''; and
       (B) by striking ``and water'' and inserting ``, water, and 
     wildlife'';
       (2) in subsection (d)--
       (A) by striking ``36,400,000'' and inserting 
     ``45,000,000''; and
       (B) by striking ``2002'' and inserting ``2011''; and
       (3) in subsection (h)(1), by striking ``and 2002'' and 
     inserting ``through 2011''.
       (b) Eligibility.--Section 1231(b) of such Act (16 U.S.C. 
     3831(b)) is amended--
       (1) by striking paragraph (3) and inserting the following:
       ``(3) pasture, hay, and rangeland if the land will be 
     restored as a wetland, or is within 300 feet of a riparian 
     area and will be restored in native vegetation; and''; and
       (2) in paragraph (4)--
       (A) by striking subparagraph (A) and inserting the 
     following:
       ``(A) if the Secretary determines that--
       ``(i) the lands contribute to the degradation of soil, 
     water, or air quality, or would pose an on-site or off-site 
     environmental threat to soil, water, or air quality if 
     permitted to remain in agricultural production; and
       ``(ii) soil, water, and air quality objectives with respect 
     to the land cannot be achieved under the environmental 
     quality incentives program established under chapter 4;'';
       (B) by striking ``or'' at the end of subparagraph (C);
       (C) by striking the period at the end of subparagraph (D) 
     and inserting ``; or''; and
       (D) by adding at the end the following:
       ``(E) if the Secretary determines that enrollment of the 
     lands would contribute to conservation of ground or surface 
     water.

     For purposes of the program under this subchapter, buffer 
     strips on lands used for the production of fruits, 
     vegetables, sod, orchards, or specialty crops shall be 
     considered cropland.''.
       (c) Environmentally Sensitive Lands and Buffer Strips.--
     Section 1231(d) of such Act (16 U.S.C. 3831(d)) is amended by 
     adding at the end the following: ``Until December 31, 2007, 
     of the acreage authorized for enrollment, not less than 
     7,000,000 acres shall be used to enroll environmentally 
     sensitive lands through the continuous enrollment program and 
     the conservation reserve enhancement program.''.
       (d) Limited Permanent Easement Authority.--Section 1231(e) 
     of such Act (16 U.S.C. 3831(e)) is amended by adding at the 
     end the following:
       ``(3) Permanent easements.--
       ``(A) In general.--Notwithstanding paragraph (1), the 
     Secretary may enroll up to 3,000,000 acres in the 
     conservation reserve using permanent easements to protect 
     critically important environmentally sensitive lands 
     (including 1,000,000 acres for isolated wetlands) and 
     habitats such as native prairies, native shrublands, small 
     wetlands, springs, seeps, fens, and other rare and declining 
     habitats. The terms of the easement shall be consistent with 
     section 1232(a).
       ``(B) Limitations on transferability.--The Secretary may 
     transfer a permanent easement established under subparagraph 
     (A) to a State or local government or a qualified nonprofit 
     conservation organization. The holder of such a permanent 
     easement may not transfer the easement to an entity other 
     than a State or local government or a qualified nonprofit 
     conservation organization.''.
       (e) Continuous Enrollment of Buffer Strips.--Section 1231 
     of such Act (16 U.S.C. 3831) is amended by adding at the end 
     the following:
       ``(i) Continuous Enrollment of Buffer Strips.--The 
     Secretary shall allow continuous enrollment of buffers whose 
     width and vegetation is designed to provide significant 
     wildlife or water quality benefits, as determined by the 
     Secretary.
       ``(j) Irrigated Lands.--Irrigated lands shall be enrolled 
     at irrigated land rates unless the Secretary determines that 
     other compensation is appropriate.
       ``(k) Exception to Payment Limitation.--Payments made in 
     connection with the enrollment of lands pursuant to the 
     continuous enrollment or the conservation reserve enhancement 
     program shall not be subject to any payment limitations under 
     section 1239c(f)(1).
       ``(l) Limited Exceptions to Prohibitions on Economic 
     Uses.--Notwithstanding the prohibitions on economic use on 
     lands enrolled in the Conservation Reserve Program under 
     section 1232(a), the Secretary may permit on such lands the 
     collection of native seeds and the use of wind turbines, so 
     long as such activities preserve the conservation values of 
     the land and take into account wildlife and wildlife 
     habitat.''.

     SEC. 224. CONSERVATION OF PRIVATE GRAZING LANDS.

       Section 386 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (16 U.S.C. 2005b) is amended by striking 
     subsection (f) and inserting the following:
       ``(f) Incentive Payments.--The Secretary may enter into 5-
     year, 10-year and 20-year contracts with landowners to 
     provide financial assistance for landowner efforts to improve 
     the ecological health of grazing lands, including practices 
     that reduce erosion, employ prescribed burns, restore 
     riparian area, control or eliminate exotic species, 
     reestablish native grasses, or otherwise enhance wildlife 
     habitat.
       ``(g) Authorization of Funding.--The Secretary shall make 
     available $20,000,000 for each of the fiscal years 2002 
     through 2011 from the Commodity Credit Corporation to carry 
     out this section.''.

     SEC. 225. GRASSLAND RESERVE AND ENHANCEMENT PROGRAM.

       Chapter 1 of subtitle D of title XII of the Food Security 
     Act of 1985 (16 U.S.C. 3830-3837f) is amended by adding at 
     the end the following:

       ``Subchapter D--Grassland Reserve and Enhancement Program

     ``SEC. 1238. GRASSLAND RESERVE AND ENHANCEMENT PROGRAM.

       ``(a) Establishment.--The Secretary shall establish a 
     program to use contracts and easements to protect 3,000,000 
     acres of environmentally critical grasslands, shrubs, and 
     blufflands. Beginning in fiscal year 2002, the Secretary 
     shall conduct outreach to inform the public of the program.
       ``(b) Enrollment Conditions.--
       ``(1) Maximum enrollment.--The total number of acres 
     enrolled in the program shall not exceed 3,000,000 acres. The 
     Secretary shall enroll lands using permanent easements to 
     meet demand, but in no case shall more than 50 percent of the 
     available acreage be enrolled in permanent easements, and the 
     balance shall be enrolled in contracts through which the 
     Secretary shall provide assistance and incentive payments.

[[Page 18375]]

       ``(2) Terms of contracts or easements.--The Secretary shall 
     enroll in the program for a willing owner not less than 100 
     contiguous acres of land west of the 100th meridian or not 
     less than 50 contiguous acres of land east of the 90th 
     meridian through 10-year or 20-year contracts or permanent 
     easements.
       ``(c) Eligible Land.--Land shall be eligible to be enrolled 
     in the program if the Secretary determines that--
       ``(1) the land is natural grass or shrubland;
       ``(2) the land--
       ``(A) is located in an area that has been historically 
     dominated by natural grass or shrubland; and
       ``(B) has potential to serve as habitat for animal or plant 
     populations of significant ecological value if the land is 
     restored to natural grass or shrubland; or
       ``(3) the land is adjacent to land described in paragraph 
     (1) or (2), and the Secretary determines it is necessary to 
     maintain or restore native grassland or shrubland under this 
     section.
       ``(d) Limitations on Authorization of Appropriations.--To 
     carry out this section, there shall be available for each of 
     fiscal years 2002 through 2011 such sums as may be necessary 
     from the funds of the Commodity Credit Corporation.

     ``SEC. 1238A. CONTRACTS AND AGREEMENTS.

       ``(a) Requirements of Landowner.--To be eligible to enroll 
     land in the program, the owner of the land shall--
       ``(1) agree to comply with the terms of the contract and 
     related restoration agreements; and
       ``(2) agree to the suspension of any existing cropland base 
     and allotment history for the land under any program 
     administered by the Secretary.
       ``(b) Terms of Contract or Easement.--A contract or 
     easement under subsection (a) shall--
       ``(1) permit--
       ``(A) common grazing practices on the land in a manner that 
     is consistent with maintaining the viability of natural grass 
     and shrub species indigenous to that locality;
       ``(B) haying, mowing, or haying for seed production, except 
     that such uses shall not be permitted until after the end of 
     the nesting and brood-rearing season for birds in the local 
     area which are in significant decline or are conserved 
     pursuant to State or Federal law, as determined by the 
     Natural Resources Conservation Service State conservationist;
       ``(C) construction of fire breaks and fences, including 
     placement of the posts necessary for fences; and
       ``(D) practices that reduce erosion, restore native 
     species, control and eradicate exotic species, enhance 
     habitat for native wildlife, and improve the health of 
     riparian areas;
       ``(2) prohibit--
       ``(A) forestry and the production of any agricultural 
     commodity (other than hay);
       ``(B) unless allowed under subsection (d), the conduct of 
     any other activity that would disturb the surface of the land 
     covered by the contract or easement; and
       ``(C) the development of homes, businesses or other 
     structures on land subject to the contract or easement; and
       ``(3) include such additional provisions as the Secretary 
     determines are appropriate to carry out or facilitate the 
     administration of this subchapter.
       ``(c) Ranking Applications.--
       ``(1) Establishment of criteria.--The Secretary shall 
     establish criteria to evaluate and rank applications for 
     contracts under this subchapter.
       ``(2) Emphasis.--In establishing the criteria, the 
     Secretary shall emphasize support for native grass and 
     shrubland, grazing operations, and plant and animal 
     biodiversity.
       ``(d) Restoration Agreements.--The Secretary shall 
     prescribe the terms by which grassland that is subject to a 
     contract under the program shall be restored. The agreement 
     shall include duties of the land owner and the Secretary, 
     including the Federal share of restoration payments and 
     technical assistance.
       ``(e) Violations.--On the violation of the terms or 
     conditions of a contract or restoration agreement entered 
     into under this section--
       ``(1) the contract shall remain in force; and
       ``(2) the Secretary may require the owner to refund all or 
     part of any payments received by the owner under this 
     subchapter, with interest on the payments as determined 
     appropriate by the Secretary.

     ``SEC. 1238B. DUTIES OF SECRETARY.

       ``(a) In General.--In return for the granting of a contract 
     by an owner under this subchapter, the Secretary shall make 
     contract payments and payments of the Federal share of 
     restoration and provide technical assistance to the owner in 
     accordance with this section. The Secretary shall base the 
     amount paid for an easement on the fair market value of the 
     easement.
       ``(b) Federal Share of Restoration.--The Secretary shall 
     make payments to the owner of not more than--
       ``(1) in the case of virgin (never cultivated) grassland, 
     90 percent of the costs of carrying out measures and 
     practices necessary to restore grassland functions and 
     values; or
       ``(2) in the case of restored grassland, 75 percent of such 
     costs.
       ``(c) Technical Assistance.--A landowner who is receiving a 
     benefit under this subchapter shall be eligible to receive 
     technical assistance in accordance with section 1243(d) to 
     assist the owner or operator in carrying out a contract 
     entered into under this subchapter.
       ``(d) Payments to Others.--If an owner who is entitled to a 
     payment under this subchapter dies, becomes incompetent, is 
     otherwise unable to receive the payment, or is succeeded by 
     another person who renders or completes the required 
     performance, the Secretary shall make the payment, in 
     accordance with regulations promulgated by the Secretary and 
     without regard to any other provision of law, in such manner 
     as the Secretary determines is fair and reasonable in light 
     of all the circumstances.''.

                      Subtitle D--Organic Farming

     SEC. 231. PROGRAM TO ASSIST TRANSITION TO ORGANIC FARMING.

       (a) Assistance Authorized.--The Secretary of Agriculture 
     (in this section referred to as the ``Secretary'') shall 
     expand the National Organic Program to include a voluntary 
     program to assist agricultural producers in making the 
     transition from conventional to organic farming and to assist 
     existing organic farmers. Under the program, the Secretary 
     may make payments to cover all or a portion of--
       (1) production and marketing losses;
       (2) conservation practices related to organic food 
     production;
       (3) certification costs;
       (4) technical assistance by qualified third parties;
       (5) educational materials; or
       (6) farm-to-consumer market development.
       (b) Limitation on Expenditures.--Payments to individual 
     farm and ranch operators under this section shall not exceed 
     $10,000 per year, and such payments shall not be made to 
     individuals operating a conventional farm or ranch in more 
     than 3 fiscal years.
       (c) Organic Certification Reimbursement Program.--The 
     Secretary shall reimburse producers for the cost of organic 
     certification. To expedite certification, farmers seeking 
     certification shall be eligible for a direct reimbursement of 
     up to $500 by the Secretary of certification costs, so long 
     as producers present an organic certificate and receipt.
       (d) Funding.--Of the funds of the Commodity Credit 
     Corporation, there shall be available to the Secretary to 
     carry out this section $20,000,000 for fiscal years 2002 and 
     2003, $40,000,000 for fiscal year 2004, $40,000,000 for 
     fiscal year 2005, $50,000,000 for fiscal year 2006, 
     $50,000,000 for fiscal year 2007, $50,000,000 for fiscal year 
     2008, and $0 for fiscal years 2009 through 2011.

                          Subtitle E--Forestry

     SEC. 241. URBAN AND COMMUNITY FORESTRY.

       Section 9(i) of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2105(i)) is amended to read as follows:
       ``(i) Funding.--The Secretary shall use $50,000,000 of the 
     funds of the Commodity Credit Corporation to carry out this 
     section for each of the fiscal years 2002 through 2011. In 
     addition, there are authorized to be appropriated to the 
     Secretary not more than $50,000,000 to carry out this section 
     for each of the fiscal years 2002 through 2011. As determined 
     by the Secretary, socially disadvantaged foresters shall be 
     eligible for funding under this section.''.

     SEC. 242. WATERSHED FORESTRY INITIATIVE.

       (a) Establishment.--The Secretary shall establish a program 
     for the purpose of providing financial assistance to enhance 
     the quality of municipal water supplies and to encourage the 
     long-term sustainability of private forestland.
       (b) Easements.--The Secretary shall annually use 
     $75,000,000 from the Commodity Credit Corporation to be 
     matched equally by any non-Federal source for each of the 
     fiscal years 2002 through 2011 to acquire permanent easements 
     that promote watershed protection. The Secretary shall 
     establish a system to fairly compensate landowners for the 
     value of an easement entered into under this section.
       (c) Land-Use Practices.--The Secretary shall annually use 
     $25,000,000 from the Commodity Credit Corporation for each of 
     the fiscal years 2002 through 2011 to share equally with any 
     non-Federal source the cost of land management practices on 
     nonindustrial forestland that protect municipal drinking 
     water supplies and other conservation purposes. The Secretary 
     shall consider, among other factors, the extent to which 
     projects are identified in a regional or watershed 
     conservation plan. Practices that are eligible for funding 
     under this section include the following:
       (1) Natural forest regeneration.
       (2) Prescribed burns.
       (3) Native species restoration.
       (4) Stream and watershed restoration.
       (5) Road retirement.
       (6) Riparian restoration.
       (7) Other practices that improve water quality and wildlife 
     habitat, as determined by the Secretary.
       (d) Regional and Watershed Planning.--The Secretary shall 
     establish a program to make grants not exceeding $10,000 to 
     develop and implement regional and watershed-based 
     conservation plans to comply with existing laws and meeting 
     water quality standards. The Secretary shall consider, among 
     other factors, the extent to which applicants develop 
     interjurisdictional conservation plans,

[[Page 18376]]

     protect nationally significant resources, engage the public, 
     and demonstrate local support. The Secretary shall use not 
     more than $10,000,000 from the Commodity Credit Corporation 
     for each of the fiscal years 2002 through 2011 to carry out 
     this subsection.

                    Subtitle F--Technical Assistance

     SEC. 251. CONSERVATION TECHNICAL ASSISTANCE.

       (a) Section 6 of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590f) is amended--
       (1) by striking the 1st undesignated paragraph and 
     inserting the following:
       ``(a) The Secretary shall make available $200,000,000 each 
     fiscal year from the Commodity Credit Corporation, and such 
     additional sums as may be appropriated by the Congress, to 
     carry out this Act.''; and
       (2) by desginating the 2nd undesignated paragraph as 
     subsection (b).
       (b) Section 7 of such Act (16 U.S.C. 590g) is amended by 
     striking ``and (7)'' and inserting ``(7) any of the purposes 
     of agricultural conservation programs authorized by Congress, 
     and (8)''.

     SEC. 252. REIMBURSEMENT FOR PROGRAM ADMINISTRATION.

       Subtitle E of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3841-3843) is amended--
       (1) by inserting ``(1)'' before the first unnumbered 
     paragraph;
       (2) by redesignating paragraphs (1) through (3) as 
     subparagraphs (A) through (B);
       (3) by moving the newly designated subparagraphs (A) 
     through (B) three ems to the right;
       (4) by adding at the end the following:
       ``(2) For each of fiscal years 1996 through 2011, the 
     Secretary shall use the funds of the Commodity Credit 
     Corporation for the provision of technical assistance to 
     allow for full reimbursement of actual costs for delivering 
     all conservation programs funded through the Commodity Credit 
     Corporation for which technical assistance is required.''.

     SEC. 253. CONSERVATION TECHNICAL ASSISTANCE BY THIRD PARTIES.

       Section 1243(d) of the Food Security Act of 1985 (16 U.S.C. 
     3843(d)) is amended--
       (1) by striking ``In the preparation'' and inserting the 
     following:
       ``(1) In general.--In the preparation''; and
       (2) by adding at the end the following:
       ``(2) Establishment of training centers.--To facilitate the 
     training and certification of Federal and non-Federal 
     employees and qualified third parties, the Secretary may 
     establish training centers in the following locations:
       ``(A) Fresno, California.
       ``(B) Platteville, Wisconsin.
       ``(C) Lincoln, Nebraska.
       ``(D) Ithaca, New York.
       ``(E) Pullman, Washington.
       ``(F) Orono, Maine.
       ``(G) Gainesville, Florida.
       ``(H) College Park, Maryland.
       ``(3) Certification of third-party providers.--
       ``(A) In general.--Not later than 6 months after the date 
     of the enactment of this Act, the Secretary of Agriculture 
     shall, by regulation, establish a system for approving 
     persons to provide technical assistance pursuant to this 
     title. In the system, the Secretary shall give priority to a 
     person who has a memorandum of understanding regarding the 
     provision of technical assistance in place with the 
     Secretary.
       ``(B) Expertise required.--In prescribing such regulations, 
     the Secretary shall ensure that persons with expertise in the 
     technical aspects of conservation planning, watershed 
     planning, environmental engineering, including commercial 
     entities, qualified nonprofit entities, State or local 
     governments or agencies, and other Federal agencies, are 
     eligible to become approved providers of such technical 
     assistance.
       ``(C) Qualified nonprofit organizations.--Qualified 
     nonprofit organizations shall include organizations whose 
     missions primarily promote the stewardship of working 
     farmland and ranchland.
       ``(4) Quality assurance program.--The Secretary shall 
     establish a program to assess the quality of the technical 
     assistance provided by third parties.''.

     SEC. 254. CONSERVATION PRACTICE STANDARDS.

       The Secretary of Agriculture shall--
       (1) revise standards and, when necessary, establish 
     standards for eligible conservation practices to include 
     measurable goals for enhancing natural resources, including 
     innovative practices;
       (2) within 6 months after the date of the enactment of this 
     section, revise the National Handbook of Conservation 
     Practices and field office technical guides; and
       (3) not less frequently than once every 5 years, update the 
     Handbook and technical guides to reflect the best available 
     science.

           Subtitle G--Miscellaneous Conservation Provisions

     SEC. 261. CONSERVATION PROGRAM PERFORMANCE REVIEW AND 
                   EVALUATION.

       (a) In General.--The Secretary shall establish a grant 
     program to evaluate the benefits of the conservation programs 
     under title XII of the Food Security Act of 1985 and under 
     sections 242 and 262 of this Act.
       (b) Grants.--The Secretary shall make grants to land grant 
     colleges and other research institutions whose applications 
     are highly ranked under subsection (c) to evaluate the 
     economic and environmental benefits of conservation programs, 
     and shall use such research to identify and rank measures 
     needs to improve water quality, fish and wildlife habitat, 
     and other environmental goals of conservation programs.
       (c) Scientific Panels.--The Secretary shall establish a 
     panel of independent scientific experts to review and rank 
     the grant applications submitted under subsection (a).
       (d) Funding.--The Secretary shall use $10,000,000 from the 
     Commodity Credit Corporation for each of fiscal years 2002 
     through 2011 to carry out this section.

     SEC. 262. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND 
                   SEDIMENT CONTROL.

       (a) In General.--The Secretary of Agriculture, in 
     consultation with the Great Lakes Commission created by 
     Article IV of the Great Lakes Basin Compact (82 Stat. 415) 
     and in cooperation other appropriate Federal agencies may 
     carry out the Great Lakes Basin Program for Soil Erosion and 
     Sediment Control.
       (b) Assistance.--In carrying out the Program, the Secretary 
     shall--
       (1) provide project demonstration grants, provide technical 
     assistance, and carry out information and education programs 
     to improve water quality in the Great Lakes Basin by reducing 
     soil erosion and improving sediment control; and
       (2) provide a priority for projects and activities that 
     directly reduce soil erosion or improve sediment control.
       (c) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated to 
     carry out this section $10,000,000 for each of fiscal years 
     2003 through 2011.
       (2) Administrative costs.--
       (A) Commission.--The Great Lakes Commission may use not 
     more than 10 percent of the funds made available for a fiscal 
     year under paragraph (1) to pay administrative costs incurred 
     by the Commission in carrying out this section.
       (B) Secretary.--None of the funds made available under 
     paragraph (1) may be used by the Secretary to pay 
     administrative costs incurred by the Secretary in carrying 
     out this section.

               Subtitle H--Conservation Corridor Program

     SEC. 271. CONSERVATION CORRIDOR PROGRAM.

       (a) Purpose.--The purpose of this subtitle is to provide 
     for the establishment of a program that recognizes the 
     leveraged benefit of an ecosystem-based application of the 
     Department of Agriculture conservation programs, addresses 
     the increasing and extraordinary threats to agriculture in 
     many areas of the United States, and recognizes the 
     importance of local and regional involvement in the 
     protection of economically and ecologically important 
     farmlands.
       (b) Establishment.--The Secretary of Agriculture (in this 
     subtitle referred to as the ``Secretary'') shall establish a 
     Conservation Corridor Program through which States, local 
     governments, tribes, and combinations of States may submit, 
     and the Secretary may approve, plans to integrate agriculture 
     and forestry conservation programs of the United States 
     Department of Agriculture with State, local, tribal, and 
     private efforts to address farm preservation, water quality, 
     wildlife, and other conservation needs in critical areas, 
     watersheds, and corridors in a manner that enhances the 
     conservation benefits of the individual programs, tailors 
     programs to State and local needs, and promotes and supports 
     ecosystem and watershed-based conservation.
       (c) Memorandum of Agreement.--On approval of a proposed 
     plan, the Secretary may enter into a memorandum of agreement 
     with a State, a combination of States, local governments, or 
     tribes, that--
       (1) guarantees specific program resources for 
     implementation of the plan;
       (2) establishes different or automatic enrollment criteria 
     than otherwise established by regulation or policy, for 
     specific levels of enrollments of specific conservation 
     programs within the region, if doing so will achieve greater 
     conservation benefits;
       (3) establishes different compensation rates to the extent 
     the parties to the agreement consider justified;
       (4) establishes different conservation practice criteria if 
     doing so will achieve greater conservation benefits;
       (5) provides more streamlined and integrated paperwork 
     requirements; and
       (6) otherwise alters any other requirement established by 
     United States Department of Agriculture policy and regulation 
     to the extent not inconsistent with the statutory 
     requirements and purposes of an individual conservation 
     program.

     SEC. 272. CONSERVATION ENHANCEMENT PLAN.

       (a) Preparation.--To be eligible to participate in the 
     program under this subtitle, a State, combination of States, 
     political subdivision or agency of a State, tribe, or local 
     government shall submit to the Secretary a plan that proposes 
     specific criteria and commitment of resources in the 
     geographic region designated, and describes how the linkage 
     of Federal, State, and local resources will--
       (1) improve the economic viability of agriculture by 
     protecting contiguous tracts of land;
       (2) improve the ecological integrity of the ecosystems or 
     watersheds within the region

[[Page 18377]]

     by linking land with high ecological and natural resource 
     value; and
       (3) in the case of a multi-State plan, provide a draft 
     memorandum of agreement among entities in each State.
       (b) Submission and Review.--Within 90 days after receipt of 
     the conservation plan, the Secretary shall review the plan 
     and approve it for implementation and funding under this 
     subtitle if the Secretary determines that the plan and 
     memorandum of agreement meet the criteria specified in 
     subsection (c).
       (c) Criteria for Participation.--The Secretary may approve 
     a plan only if, as determined by the Secretary, the plan 
     provides for each of the following:
       (1) Actions taken under the conservation plan are voluntary 
     and require the consent of willing landowners.
       (2) Criteria specified in the plan and memorandum of 
     agreement assure that enrollments in each conservation 
     program incorporated through the plan are of exceptionally 
     high conservation value.
       (3) The program provides benefits greater than the benefits 
     that would likely be achieved through individual application 
     of the federal conservation programs because of such factors 
     as--
       (A) ecosystem- or watershed-based enrollment criteria;
       (B) lengthier or permanent conservation commitments;
       (C) integrated treatment of special natural resource 
     problems, including preservation and enhancement of natural 
     resource corridors; and
       (D) improved economic viability for agriculture.
       (4) Staffing and marketing, considering both Federal and 
     non-Federal resources, are sufficient to assure program 
     success.
       (d) Approval and Implementation.--Within 90 days after 
     approval of a conservation plan, the Secretary shall begin to 
     provide funds for the implementation of the plan.
       (e) Priority.--In carrying out this section, the Secretary 
     shall give priority to multi-State or multi-tribal plans.

     SEC. 273. FUNDING REQUIREMENTS.

       (a) Cost-Sharing.--As a further condition on the approval 
     of a conservation plan submitted by a non-Federal interest 
     under section 272, the Secretary shall require the non-
     Federal interest to contribute at least 20 percent of the 
     total cost of the Conservation Corridor Program.
       (b) Exception.--The Secretary may reduce the cost-share 
     requirement in the case of a specific activity under the 
     Conservation Corridor Program on good cause and demonstration 
     that the project or activity is likely to achieve 
     extraordinary natural resource benefits.
       (c) Coordination.--The Secretary shall require that non-
     Federal interests contributing financial resources for the 
     Conservation Corridor Program shall implement streamlined 
     paperwork requirements and other procedures to allow for 
     integration with the Federal programs for participants in the 
     program.
       (d) Reservation of Funds.--The Secretary shall direct funds 
     on a priority basis to the Conservation Corridor Program and 
     to projects in areas identified by the plan.
       (e) Administration.--A State may submit multiple plans, but 
     the Secretary shall assure opportunity for submission by each 
     State. Acreage committed as part of approved Conservation 
     Reserve Enhancement Programs shall be considered acreage of 
     the Conservation Reserve Program committed to a Conservation 
     Enhancement Program.

               Subtitle I--Funding Source and Allocations

     SEC. 281. FUNDING FOR CONSERVATION FUNDING.

       (a) Reduction in Fixed Decoupled Payments and Counter-
     Cyclical Payments.--Notwithstanding sections 104 and 105, the 
     Secretary of Agriculture (in this subtitle referred to as the 
     ``Secretary'') shall reduce by $1,900,000,000 the total 
     amount otherwise required to be paid under such sections in 
     each of fiscal years 2002 through 2011, in accordance with 
     this section.
       (b) Maximum Total Payments by Type and Fiscal Year.--In 
     making the reductions required by subsection (a), the 
     Secretary shall ensure that--
       (1) the total amount paid under section 104 does not 
     exceed--
       (A) $3,425,000,000 in fiscal year 2002; or
       (B) $4,325,000,000 in any of fiscal years 2003 through 
     2011; and
       (2) the total amount paid under section 105 does not 
     exceed--
       (A) $3,332,000,000 in fiscal year 2003;
       (B) $4,494,000,000 in fiscal year 2004;
       (C) $4,148,000,000 in fiscal year 2005;
       (D) $3,974,000,000 in fiscal year 2006;
       (E) $3,701,000,000 in fiscal year 2007;
       (F) $3,222,000,000 in fiscal year 2008;
       (G) $2,596,000,000 in fiscal year 2009;
       (H) $2,057,000,000 in fiscal year 2010; or
       (I) $1,675,000,000 in fiscal year 2011.
       (c) Limitations to Protect Smaller Farmers, Preserve Trade 
     Agreements, and Ensure Program and Regional Balance.--In 
     making the reductions required by subsection (a), the 
     Secretary shall--
       (1) accomplish all of the reductions required with respect 
     to a fiscal year by making pro rata reductions in the amounts 
     otherwise payable under sections 104 and 105 to the 10 
     percent (or, if necessary, such greater percentage as the 
     Secretary may determine) of recipients who would otherwise 
     receive the greatest total payments under such sections in 
     the fiscal year; and
       (2) to the maximum extent practicable, ensure that--
       (A) the resulting payments under such sections pose the 
     least amount of risk to the United States of violating trade 
     agreements to reduce subsidies; and
       (B) the reductions are made in a manner that achieves 
     balance among programs and regions.

     SEC. 282. ALLOCATION OF CONSERVATION FUNDS BY STATE.

       (a) State Allocation.--To the maximum extent practicable in 
     each of fiscal years 2002 through 2011, the Secretary, 
     subject to the rules of the conservation programs 
     administered by the Secretary, shall ensure that each State 
     receives at a minimum the State's share of the $1,900,000,000 
     based on the State's share of the total agricultural market 
     value of production, with each State receiving not less than 
     0.52 percent and not more than 7 percent of such amount 
     annually.
       (b) Transition and Unobligated Balances.--If the offices of 
     the United States Department of Agriculture in each 
     respective State cannot expend all funds allocated in this 
     title within 2 consecutive fiscal years for the programs 
     identified in this title, the funds shall be remitted to the 
     Secretary for reallocation as the Secretary deems appropriate 
     among States to address unmet conservation needs through the 
     programs in this title, except that in no event shall these 
     unobligated balances be used to fund technical assistance.
       (c) Regional Equity.--Section 1230 of the Food Security Act 
     of 1985 (16 U.S.C. 3830) is amended by adding at the end the 
     following:
       ``(d) Regional Equity.--In carrying out the ECARP, the 
     Secretary shall recognize the importance of regional equity, 
     and the importance of accomplishing many conservation 
     objectives that can sometimes only be achieved on land of 
     high value.''.

                     Subtitle J--Rural Development

     SEC. 291. EXPANSION OF STATE MARKETING PROGRAMS.

       (a) Federal-State Market Incentive Payments.--Section 
     204(b) of the Agricultural Marketing Act of 1946 (7 U.S.C. 
     1623) is amended by striking ``such sums as he may deem 
     appropriate'' and inserting ``$10,000,000 from the Commodity 
     Credit Corporation for each of the fiscal years 2002 through 
     2011''.
       (b) Market Development Grants.--Section 203(e)(1) of such 
     Act (7 U.S.C. 1622(e)(1)) is amended by adding at the end the 
     following: ``The Secretary shall transfer to State 
     departments of agriculture and other State marketing offices 
     at least 10 percent of the funds appropriated for a fiscal 
     year for this subsection to facilitate the development of 
     local and regional markets for agricultural products, 
     including direct farm-to-consumer markets.''.
       Amend the table of contents accordingly.

                               H.R. 2646

                         Offered By: Mrs. Bono

   [Page and line numbers refer to the amendment in the nature of a 
                              substitute]

       Amendment No. 11: At the end of title IX (page 354, after 
     line 16), insert the following new section:

     SEC. __. COUNTRY OF ORIGIN LABELING OF PERISHABLE 
                   AGRICULTURAL COMMODITIES.

       (a) Establishment of Labeling Requirement.--The Perishable 
     Agricultural Commodities Act, 1930, is amended by inserting 
     after section 17 (7 U.S.C. 499q) the following new section:

     ``SEC. 18. COUNTRY OF ORIGIN LABELING OF PERISHABLE 
                   AGRICULTURAL COMMODITIES.

       ``(a) Notice of Country of Origin Required.--Except as 
     provided in subsection (b), a retailer of a perishable 
     agricultural commodity shall inform consumers, at the final 
     point of sale of the perishable agricultural commodity to 
     consumers, of the country of origin of the perishable 
     agricultural commodity. This requirement shall apply to 
     imported and domestically produced perishable agricultural 
     commodities.
       ``(b) Exemption for Food Service Establishments.--
       ``(1) Exemption.--Subsection (a) shall not apply to a 
     perishable agricultural commodity to the extent that the 
     perishable agricultural commodity is--
       ``(A) prepared or served in a food service establishment; 
     and
       ``(B) offered for sale or sold at the food service 
     establishment in normal retail quantities or served to 
     consumers at the food service establishment.
       ``(2) Definition.--In this subsection, the term `food 
     service establishment' means a restaurant, cafeteria, lunch 
     room, food stand, saloon, tavern, bar, lounge, or other 
     similar facility, which is operated as an enterprise engaged 
     in the business of selling foods to the public.
       ``(c) Method of Notification.--
       ``(1) In general.--The information required by subsection 
     (a) may be provided to consumers by means of a label, stamp, 
     mark, placard, or other clear and visible sign on the 
     perishable agricultural commodity or on the package, display, 
     holding unit, or bin containing the commodity at the final 
     point of sale to consumers.

[[Page 18378]]

       ``(2) Labeled commodities.--If a perishable agricultural 
     commodity is already individually labeled regarding country 
     of origin by a packer, importer, or another person, the 
     retailer shall not be required to provide any additional 
     information to comply with this section.
       ``(d) Violations.--If a retailer fails to indicate the 
     country of origin of a perishable agricultural commodity as 
     required by subsection (a), the Secretary of Agriculture may 
     assess a civil penalty on the retailer in an amount not to 
     exceed--
       ``(1) $1,000 for the first day on which the violation 
     occurs; and
       ``(2) $250 for each day on which the same violation 
     continues.
       ``(e) Deposit of Funds.--Amounts collected under subsection 
     (d) shall be deposited in the Treasury of the United States 
     as miscellaneous receipts.''.
       (b) Application of Amendment.--Section 18 of the Perishable 
     Agricultural Commodities Act, 1930, as added by subsection 
     (a), shall apply with respect to a perishable agricultural 
     commodity offered for retail sale after the end of the six-
     month period beginning on the date of the enactment of this 
     Act.

                               H.R. 2646

                        Offered By: Mr. Boswell

       Amendment No. 12: At the end of title IX, insert the 
     following new section:

     SEC. __. RENEWABLE ENERGY RESERVE.

       (a) Purposes.--It is the purpose of this section to create 
     a reserve of agricultural commodities to--
       (1) provide feedstocks to support and further the 
     production of the renewable energy; and
       (2) support the renewable energy industry in times when 
     production is at risk of decline due to reduced feedstock 
     supplies or significant commodity price increases.
       (b) Establishment.--During fiscal years 2002 through 2011, 
     the Secretary shall establish and administer a government-
     owned and farmer-stored renewable energy reserve program 
     under which producers of agricultural commodities will be 
     able to--
       (1) sell agricultural commodities authorized by the 
     Secretary into the reserve; and
       (2) store such agricultural commodities.
       (c) Name.--The agricultural commodity reserve established 
     under this section shall be known as the ``Renewable Energy 
     Reserve''.
       (d) Purchases.--The Secretary shall purchase agricultural 
     commodities at commercial rates in order to establish, 
     maintain, or enhance the reserve when--
       (1) such commodities are in abundant supply; and
       (2) there is need for adequate carryover stocks to ensure a 
     reliable supply of the commodities to meet the purposes of 
     the reserve or it is otherwise necessary to fulfill the needs 
     and purposes of the renewable energy program administered or 
     assisted by the Secretary.
       (e) Limitation.--Purchases under this section shall be 
     limited to--
       (1) the type and quantities of agricultural commodities 
     necessary to provide approximately four-month's estimated 
     utilization for renewable energy purposes;
       (2) an additional amount of commodities to provide 
     incentives for research and development of new renewable 
     fuels and bio-energy initiatives; and
       (3) such maximum quantities of agricultural commodities 
     determined by the Secretary as will enable the purposes of 
     the renewable energy program to be achieved.
       (f) Release of Stocks.--Stocks shall be released at cost of 
     acquisition, and in amounts determined appropriate by the 
     Secretary, when market prices of the agricultural commodity 
     exceed 100 percent of the full economic cost of production of 
     those commodities. Cost of production for the commodity shall 
     be determined by the Economic Research Service using the best 
     available information, and based on a three year moving 
     average.
       (g) Storage payments.--The Secretary shall provide storage 
     payments to producers of agricultural commodities to maintain 
     the reserve established under this section. Storage payments 
     shall--
       (1) be in such amounts and under such conditions as the 
     Secretary determines appropriate to encourage producers to 
     participate in the program;
       (2) reflect local, commercial storage rates subject to 
     appropriate conditions concerning quality management and 
     other factors; and


       (3) not be less than comparable local commercial rates, 
     except as may be provided by paragraph (2).
       (h) Commodity credit corporation.--
       (1) In General.--The Secretary shall use the funds, 
     facilities, and authorities of the Commodity Credit 
     Corporation to fulfill the purposes of this section. To the 
     maximum extent practicable consistent with the purposes, and 
     effective and efficient administration of this section, the 
     Secretary shall utilize the usual and customary channels, 
     facilities and arrangement of trade and commerce.
       (2) Funding Offset.--The Secretary shall reduce 
     expenditures under title I as necessary to offset all 
     expenditures to be made by the Secretary under this section.

                               H.R. 2646

                        Offered By: Mr. Boswell

       Amendment No. 13: At the end of title IX, insert the 
     following new section:

     SEC. __. RENEWABLE ENERGY RESERVE.

       (a) Purposes.--It is the purpose of this section to create 
     a reserve of agricultural commodities to--
       (1) provide feedstocks to support and further the 
     production of the renewable energy; and
       (2) support the renewable energy industry in times when 
     production is at risk of decline due to reduced feedstock 
     supplies or significant commodity price increases.
       (b) Establishment.--During fiscal years 2002 through 2011, 
     the Secretary shall establish and administer a government-
     owned and farmer-stored renewable energy reserve program 
     under which producers of agricultural commodities will be 
     able to--
       (1) sell agricultural commodities authorized by the 
     Secretary into the reserve; and
       (2) store such agricultural commodities.
       (c) Name.--The agricultural commodity reserve established 
     under this section shall be known as the ``Renewable Energy 
     Reserve''.
       (d) Purchases.--The Secretary shall purchase agricultural 
     commodities at commercial rates in order to establish, 
     maintain, or enhance the reserve when--
       (1) such commodities are in abundant supply; and
       (2) there is need for adequate carryover stocks to ensure a 
     reliable supply of the commodities to meet the purposes of 
     the reserve or it is otherwise necessary to fulfill the needs 
     and purposes of the renewable energy program administered or 
     assisted by the Secretary.
       (e) Limitation.--Purchases under this section shall be 
     limited to--
       (1) the type and quantities of agricultural commodities 
     necessary to provide approximately four-month's estimated 
     utilization for renewable energy purposes;
       (2) an additional amount of commodities to provide 
     incentives for research and development of new renewable 
     fuels and bio-energy initiatives; and
       (3) such maximum quantities of agricultural commodities 
     determined by the Secretary as will enable the purposes of 
     the renewable energy program to be achieved.
       (f) Release of Stocks.--Stocks shall be released at cost of 
     acquisition, and in amounts determined appropriate by the 
     Secretary, when market prices of the agricultural commodity 
     exceed 100 percent of the full economic cost of production of 
     those commodities. Cost of production for the commodity shall 
     be determined by the Economic Research Service using the best 
     available information, and based on a three year moving 
     average.
       (g) Storage payments.--The Secretary shall provide storage 
     payments to producers of agricultural commodities to maintain 
     the reserve established under this section. Storage payments 
     shall--
       (1) be in such amounts and under such conditions as the 
     Secretary determines appropriate to encourage producers to 
     participate in the program;
       (2) reflect local, commercial storage rates subject to 
     appropriate conditions concerning quality management and 
     other factors; and
       (3) not be less than comparable local commercial rates, 
     except as may be provided by paragraph (2).
       (h) Commodity credit corporation.--
       (1) In General.--The Secretary shall use the funds, 
     facilities, and authorities of the Commodity Credit 
     Corporation to fulfill the purposes of this section. To the 
     maximum extent practicable consistent with the purposes, and 
     effective and efficient administration of this section, the 
     Secretary shall utilize the usual and customary channels, 
     facilities and arrangement of trade and commerce.
       (2) Reduction in Fixed, Decoupled Payments for Funding 
     Offset.--Notwithstanding section 104, the Secretary shall 
     reduce the total amount payable under such section as fixed, 
     decoupled payments, on a pro rata basis across covered 
     commodities, so that the total amount of such reductions 
     equals $277,000,000 in fiscal year 2004, $93,000,000 in 
     fiscal year 2005, $80,000,000 in fiscal year 2006, 
     $88,000,000 in fiscal year 2007, $96,000,000 in fiscal year 
     2008, $95,000,000 in fiscal year 2009, $96,000,000 in fiscal 
     year 2010, and $97,000,000 in fiscal year 2011.

                               H.R. 2646

                        Offered By: Mr. Boswell

       Amendment No. 14: At the end of title IX, insert the 
     following new section:

     SEC. __. RENEWABLE ENERGY RESERVE.

       (a) Purposes.--It is the purpose of this section to create 
     a reserve of agricultural commodities to--
       (1) provide feedstocks to support and further the 
     production of the renewable energy; and
       (2) support the renewable energy industry in times when 
     production is at risk of decline due to reduced feedstock 
     supplies or significant commodity price increases.
       (b) Establishment.--The Secretary shall establish and 
     administer a government-owned and farmer-stored renewable 
     energy reserve program under which producers of agricultural 
     commodities will be able to--
       (1) sell agricultural commodities authorized by the 
     Secretary into the reserve; and

[[Page 18379]]

       (2) store such agricultural commodities.
       (c) Name.--The agricultural commodity reserve established 
     under this section shall be known as the ``Renewable Energy 
     Reserve''.
       (d) Purchases.--The Secretary shall purchase agricultural 
     commodities at commercial rates in order to establish, 
     maintain, or enhance the reserve when--
       (1) such commodities are in abundant supply; and
       (2) there is need for adequate carryover stocks to ensure a 
     reliable supply of the commodities to meet the purposes of 
     the reserve or it is otherwise necessary to fulfill the needs 
     and purposes of the renewable energy program administered or 
     assisted by the Secretary.
       (e) Limitation.--Purchases under this section shall be 
     limited to--
       (1) the type and quantities of agricultural commodities 
     necessary to provide approximately four-month's estimated 
     utilization for renewable energy purposes;
       (2) an additional amount of commodities to provide 
     incentives for research and development of new renewable 
     fuels and bio-energy initiatives; and
       (3) such maximum quantities of agricultural commodities 
     determined by the Secretary as will enable the purposes of 
     the renewable energy program to be achieved.
       (f) Release of Stocks.--Stocks shall be released at cost of 
     acquisition, and in amounts determined appropriate by the 
     Secretary, when market prices of the agricultural commodity 
     exceed 100 percent of the full economic cost of production of 
     those commodities. Cost of production for the commodity shall 
     be determined by the Economic Research Service using the best 
     available information, and based on a three year moving 
     average.
       (g) Storage payments.--The Secretary shall provide storage 
     payments to producers of agricultural commodities to maintain 
     the reserve established under this section. Storage payments 
     shall--
       (1) be in such amounts and under such conditions as the 
     Secretary determines appropriate to encourage producers to 
     participate in the program;
       (2) reflect local, commercial storage rates subject to 
     appropriate conditions concerning quality management and 
     other factors; and
       (3) not be less than comparable local commercial rates, 
     except as may be provided by paragraph (2).
       (h) Commodity credit corporation.--
       (1) In General.--In such amounts as are provided in advance 
     in appropriation Acts, the Secretary shall use the funds, 
     facilities, and authorities of the Commodity Credit 
     Corporation to fulfill the purposes of this section. To the 
     maximum extent practicable consistent with the purposes, and 
     effective and efficient administration of this section, the 
     Secretary shall utilize the usual and customary channels, 
     facilities and arrangement of trade and commerce.
       (2) Funding Offset.--The Secretary shall reduce 
     expenditures under title I as necessary to offset the 
     expenditures to be made by the Secretary under this section.

                               H.R. 2646

                        Offered By: Mrs. Clayton

       Amendment No. 15: At the end of the bill add the following:

   TITLE X--USE OF AMOUNTS PROVIDED FOR FIXED, DECOUPLED PAYMENTS TO 
        PROVIDE NECESSARY FUNDS FOR RURAL DEVELOPMENT PROGRAMS.

     SEC. 1001. USE OF AMOUNTS PROVIDED FOR FIXED, DECOUPLED 
                   PAYMENTS TO PROVIDE NECESSARY FUNDS FOR RURAL 
                   DEVELOPMENT PROGRAMS.

       (a) In General.--Notwithstanding section 104 of this Act, 
     in each of fiscal years 2002 through 2011, the Secretary of 
     Agriculture shall--
       (1) reduce the total amount payable under section 104 of 
     this Act, on a pro rata basis, so that the total amount of 
     such reductions equals $100,000,000; and
       (2) expend--
       (A) $45,000,000 for grants under 306A of the Consolidated 
     Farm and Rural Development Act (relating to the community 
     water assistance grant program);
       (B) $45,000,000 for grants under 613 of this Act (relating 
     to the pilot program for development and implementation of 
     startegic regional development plans); and
       (C) $10,000,000 for grants under section 231(a)(1) of the 
     Agricultural Risk Protection Act of 2000 (relating to value-
     added agricultural product market development grants).
       (b) Related Amendments.--Section 613 of this Act is 
     amended--
       (1) in subsection (a)(1), by striking ``select 10 States'' 
     and inserting ``, on a competitive basis, select States'';
       (2) in subsection (a)(3)(A), by inserting ``, plus \2/13\ 
     of the amounts made available by section 1001(a) of the Farm 
     Security Act of 2001 for grants under this section,'' after 
     ``Corporation''; and
       (3) in subsection (b)(2)(A), insert ``, plus \11/13\ of the 
     amounts made available by section 1001(a) of the Farm 
     Security Act of 2001 for grants under this section,'' after 
     ``Corporation''.

                               H.R. 2646

                        Offered By: Mr. Conyers

       Amendment No. 16: In title V, strike section 517 and 
     redesignate succeeding sections (and amend the table of 
     contents) accordingly.
       At the end of title IX, insert the following;

     SEC. 9____. TRANSPARENCY AND ACCOUNTABILITY FOR MINORITY AND 
                   DISADVANTAGED FARMERS.

       (a) Purpose.--The purpose of this section is to ensure 
     compilation and public disclosure of data critical to 
     assessing and holding the Department of Agriculture 
     accountable for the equitable participation of minority, 
     limited resource, and women farmers and ranchers in programs 
     of the Department.
       (b) Use of Target Participation Rates in All Department of 
     Agriculture Programs for Farmers and Ranchers.--
       (1) Establishment.--For each county and State in the United 
     States, the Secretary of Agriculture shall establish an 
     annual target participation rate equal to the number of 
     socially disadvantaged residents in the political subdivision 
     in proportion to the total number of residents in the 
     political subdivision. In this section, the term ``socially 
     disadvantaged resident'' means a resident who is a member of 
     a socially disadvantaged group (as defined in section 
     355(e)(1) of the Consolidated Farm and Rural Development 
     Act).
       (2) Comparison with actual participation rates.--The 
     Secretary shall compute annually the actual participation 
     rates of socially disadvantaged and women farmers and 
     ranchers as a percentage of the total participation of all 
     farmers and ranchers, for each program of the Department of 
     Agriculture in which a farmer or rancher may participate. In 
     determining these rates, the Secretary shall consider the 
     number of socially disadvantaged farmers and ranchers of each 
     race or ethnicity, and the number of women participants in 
     each county and State in proportion to the total number of 
     participants in each program.
       (c) Compilation of Election Participation Data, and Public 
     Disclosure Requirements for County Committee Elections.--
     Effective 90 days after the date of the enactment of this 
     section, section 8(a)(5)(B) of the Soil Conservation and 
     Domestic Allotment Act (16 U.S.C. 509h(a)(5)(B)) is amended 
     by adding at the end the following:
       ``(v)(I) The committee shall publicly announce at least 10 
     days in advance the date, time, and place where ballots will 
     be opened and counted. No ballots may be opened until such 
     time, and anyone may observe the opening and counting of 
     ballots.
       ``(II) Within 20 days after the elections, the committee 
     shall compile and report to the State and national offices 
     the number of eligible voters in the county and in each open 
     local administrative area or at large district, the number of 
     ballots counted, the number and percentage of ballots 
     disqualified, and the proportion of eligible voters compared 
     to votes cast. The committee shall further compile, in each 
     category above, the results aggregated by race, ethnicity, 
     and gender, as compared to total eligible voters and total 
     votes. The committee shall also report as provided above, the 
     number of nominees for each open seat and the election 
     results, aggregated by race, ethnicity and gender, as well as 
     the new composition of the county or area committee.
       ``(III) The Secretary shall, within 90 days after the 
     election, compile a report which aggregates all data 
     collected under subclause (II) and presents results at the 
     national, regional, State, and local levels.
       ``(IV) The Secretary shall analyze the data compiled in 
     subclauses (II) and (III) and within 1 year after the 
     completion of the report referred to in subclause (III), 
     shall prescribe (and open to public comment) uniform 
     guidelines for conducting elections for members and 
     alternates of county committees, including procedures to 
     allow appointment as voting members of groups, or methods to 
     assure fair representation of groups who would be 
     demographically underrepresented in that county.''.
       (d) Requirements for Electronic, Web, and Printed 
     Disclosure of Data.--The Secretary shall compile the actual 
     number of farmers and ranchers, classified by race or 
     ethnicity and gender, for each county and State with national 
     totals. The Secretary shall, for the current and each of the 
     4 preceding years, make available to the public on websites 
     that the Department of Agriculture regularly maintains, and 
     in electronic and paper form, the above information, as well 
     as all data required under subsection (b) of this section and 
     section 8(a)(5)(B)(v) of the Soil Conservation and Domestic 
     Allotment Act, at the county, State, and national levels in a 
     manner that allows comparisons among target and actual 
     program and election participation rates, among and between 
     agricultural programs, among and between demographically 
     similar counties, and over time at the county, State and 
     national levels.
       (e) Report to Congress.--The Secretary shall maintain and 
     make readily available to the public all data required under 
     subsections (b) and (d) of this section and section 
     8(a)(5)(B)(v) of the Soil Conservation

[[Page 18380]]

     and Domestic Allotment Act collected annually since the most 
     recent Census of Agriculture. After each Census of 
     Agriculture, the Secretary shall report to Congress and the 
     public the rate of loss or gain in participation by each 
     group, by race, ethnicity, and gender, since the previous 
     Census of Agriculture.
       (f) Accountability.--The Secretary may also use the above 
     data, including comparisons with demographically similar 
     counties and with national averages, to monitor and evaluate 
     election and program participation rates and agricultural 
     programs, and civil rights compliance, and in county 
     committee employee and Department of Agriculture employee 
     performance reviews, and in developing outreach and other 
     strategies and recommendations to assure agriculture programs 
     and services meet the needs of socially disadvantaged and 
     women producers.
       (g) Conforming Amendment.--Section 355(c)(1) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     2005(c)(1)) is amended to read as follows:
       ``(1) Establishment.--In paragraph (2), the term `target 
     participation rate' means, with respect to a State, the 
     target participation rate established for purposes of 
     subtitle B of this title pursuant to section 9__(c)(1) of the 
     Farm Security Act of 2001.''.

                               H.R. 2646

                         Offered By: Mr. DeLay

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 17: In section 183(a), strike paragraph (3) 
     and the amendment made by such paragraph (page 131, lines 6 
     through 13), and insert the following:
       (3) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) Limitation on counter-cyclical payments.--
       ``(A) General rule.--The total amount of counter-cyclical 
     payments that a person may receive during any crop year shall 
     not exceed the amount specified in paragraph (2), as in 
     effect on the day before the date of the enactment of the 
     Farm Security Act of 2001.
       ``(B) Special rule.--This subparagraph shall apply only 
     with regard to counter-cyclical payments attributable to rice 
     contract acreage (as defined in section 102(3) of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7202(3))) in a State in which rice plantings on such contract 
     acreage declined by more than 30 percent in the 2001 crop 
     year in comparison to the 1995 crop year. Notwithstanding 
     section 1001A(b)(3)(A), the total amount of counter-cyclical 
     payments, on a per-acre basis, that a landowner who is not 
     actively engaged (consistent with section 1001A(b)(2)) in the 
     production of a covered commodity on such acreage may receive 
     during any crop year shall not exceed an amount that is equal 
     to the greater of--
       ``(i) the proportionate share of the payment that is 
     commensurate to the proportion that the contribution of the 
     land represents to the operation on such contract acres, as 
     determined by the appropriate county committee; or
       ``(ii) the proportionate share of the payment that is 
     commensurate with the share of the crop that the landowner 
     would have received under a normal and customary share rent 
     contract for the production of a covered commodity in the 
     area, as determined by the county committee.''.

                               H.R. 2646

                  Offered By: Mr. Dooley of California

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 18: At the end of subtitle A of title I (page 
     29, after line 12), insert the following new section:

     SEC. 111. ELIMINATION OF FUNDING FOR COUNTER CYCLICAL FARM 
                   PAYMENTS TO PROVIDE ADDITIONAL FUNDS FOR 
                   NONRECOURSE MARKETING ASSISTANCE LOANS.

       Notwithstanding any other provision of this subtitle, the 
     Secretary of Agriculture shall not make counter-cyclical 
     payments for covered commodities so that funds are available 
     to provide nonrecourse marketing assistance loans under 
     subtitle B for covered commodities with the following loan 
     rate terms in lieu of the rates under section 122:
       (1) For the 2002 crop year, the loan rate shall be set at 
     100 percent of simple three-year average market price for the 
     1996 through 1998 crop years.
       (2) For each crop year thereafter through the 2011 crop 
     year, the three-year average would be recalculated by 
     dropping the first of the three years and by adding the next 
     crop year in sequence.
       In section 750, strike the subparagraph (C) being added by 
     subsection (a) (page 306, lines 8 through 11), and insert the 
     following new subparagraphs:
       ``(C) Additional deposit.--For each of the fiscal years 
     2002 through 2011, the Secretary of Agriculture shall also 
     deposit $100,000,000 of funds of the Commodity Credit 
     Corporation into the Account. The amounts deposited under 
     this subparagraph are in addition to the amounts deposited 
     under subparagraph (A).
       ``(D) Availability of funds.--Amounts deposited into the 
     Account pursuant to subparagraphs (A) and (C) shall remain 
     available until expended.''.

                               H.R. 2646

                  Offered By: Mr. Dooley of California

   [page and line numbers refer to the amendment in the nature of a 
                        substitute, combes.011]

       Amendment No. 19: At the end of title VII (page 321, after 
     line 23), insert the following new subtitle:

                      Subtitle F--Funding Sources

     SEC. 793. USE OF PORTION OF FUNDS FOR FIXED, DECOUPLED 
                   PAYMENTS TO INSTEAD FUND ADDITIONAL COMPETITIVE 
                   RESEARCH EFFORTS.

       (a) Availability of Funds.--Notwithstanding section 104, 
     for each of fiscal years 2002 through 2011, the Secretary of 
     Agriculture shall use $100,000,000 of the funds that would 
     otherwise be provided to producers in the form of fixed, 
     decoupled payments for that fiscal year to make an additional 
     deposit into the Initiative for Future Agriculture and Food 
     Systems account.
       (b) Grants.--
       (1) In General.--For each of fiscal years 2002 through 
     2011, the Secretary of Agriculture shall make grants under 
     section 2(b) of the Competitive, Special, and Facilities 
     Research Grant Act (7 U.S.C. 450i(b)) to the faculty of 
     institutions eligible to receive grants under the Act of 
     August 30, 1890 (7 U.S.C. 321 et seq.), including Tuskegee 
     University, West Virginia State College, 1994 Institutions 
     (as defined in section 532 of the Equity in Educational Land-
     Grant Status Act of 1994 (7 U.S.C. 301 note)), and Hispanic-
     serving institutions (as defined in section 1404(9) of the 
     National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3103(9)).
       (2) Amount of grants.--The total amount of grants awarded 
     under paragraph (1) for each fiscal year shall be not less 
     than ten percent of the total amount deposited into the 
     Initiative for Future Agriculture and Food Systems account 
     during that fiscal year.

                               H.R. 2646

                        Offerred By: Mr. English

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 20: At the end of subtitle B of title I (page 
     66, after line 3), insert the following new section:

     SEC.   . PRODUCER RETENTION OF ERRONEOUSLY PAID LOAN 
                   DEFICIENCY PAYMENTS AND MARKETING LOAN GAINS.

       Notwithstanding any other provision of law, the Secretary 
     of Agriculture and the Commodity Credit Corporation shall not 
     require producers in Erie County, Pennsylvania, to repay loan 
     deficiency payments and marketing loan gains erroneously paid 
     or determined to have been earned by the Commodity Credit 
     Corporation for certain 1998 and 1999 crops under subtitle C 
     of title I of the Federal Agriculture Improvement and Reform 
     Act of 1996 (7 U.S.C. 7231 et seq.). In the case of a 
     producer who has already made the repayment on or before the 
     date of the enactment of this Act, the Commodity Credit 
     Corporation shall reimburse the producer for the full amount 
     of the repayment.

                               H.R. 2646

                       Offerred By: Mr. Etheridge

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 21: At the end of section 164 (page 113, 
     after line 5), add the following new subsection:
       (g) Increase in Target Price.--
       (1) Increase.--Notwithstanding subsection (c), the target 
     price for peanuts shall be equal to $500 per ton rather than 
     $480 per ton.
       (2) Corresponding reduction.--To offset the increase in the 
     target price for peanuts under paragraph (1), the maximum 
     number of acres that may be enrolled in the conservation 
     reserve program is hereby reduced to 38,000,000 acres.

                               H.R. 2646

                       Offerred By: Mr. Etheridge

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 22: Page 181, line 8, insert ``(a) In 
     General.--'' before ``Section''.
       Page 181, after line 15, insert the following:
       (b) Commodity Eligibility.--Section 1302(b)(3) of the 
     Agricultural Reconciliation Act of 1993 (7 U.S.C. 5623 note) 
     is amended by inserting ``; other than leaf tobacco'' after 
     ``tobacco''.

                               H.R. 2646

                       Offered By: Mr. Gilchrest

       Amendment No. 23: At the end of title II, insert the 
     following:

               Subtitle H--Conservation Corridor Program

     SEC. 271. CONSERVATION CORRIDOR PROGRAM.

       (a) Purpose.--The purpose of this subtitle is to provide 
     for the establishment of a program that recognizes the 
     leveraged benefit of an ecosystem-based application of the 
     Department of Agriculture conservation programs, addresses 
     the increasing and extraordinary threats to agriculture in 
     many areas of the United States, and recognizes the 
     importance of local and regional involvement in the 
     protection of economically and ecologically important 
     farmlands.

[[Page 18381]]

       (b) Establishment.--The Secretary of Agriculture (in this 
     subtitle referred to as the ``Secretary'') shall establish a 
     Conservation Corridor Program through which States, local 
     governments, tribes, and combinations of States may submit, 
     and the Secretary may approve, plans to integrate agriculture 
     and forestry conservation programs of the United States 
     Department of Agriculture with State, local, tribal, and 
     private efforts to address farm preservation, water quality, 
     wildlife, and other conservation needs in critical areas, 
     watersheds, and corridors in a manner that enhances the 
     conservation benefits of the individual programs, tailors 
     programs to State and local needs, and promotes and supports 
     ecosystem and watershed-based conservation.
       (c) Memorandum of Agreement.--On approval of a proposed 
     plan, the Secretary may enter into a memorandum of agreement 
     with a State, a combination of States, local governments, or 
     tribes, that--
       (1) guarantees specific program resources for 
     implementation of the plan;
       (2) establishes different or automatic enrollment criteria 
     than otherwise established by regulation or policy, for 
     specific levels of enrollments of specific conservation 
     programs within the region, if doing so will achieve greater 
     conservation benefits;
       (3) establishes different compensation rates to the extent 
     the parties to the agreement consider justified;
       (4) establishes different conservation practice criteria if 
     doing so will achieve greater conservation benefits;
       (5) provides more streamlined and integrated paperwork 
     requirements; and
       (6) otherwise alters any other requirement established by 
     United States Department of Agriculture policy and regulation 
     to the extent not inconsistent with the statutory 
     requirements and purposes of an individual conservation 
     program.

     SEC. 272. CONSERVATION ENHANCEMENT PLAN.

       (a) Preparation.--To be eligible to participate in the 
     program under this subtitle, a State, combination of States, 
     political subdivision or agency of a State, tribe, or local 
     government shall submit to the Secretary a plan that proposes 
     specific criteria and commitment of resources in the 
     geographic region designated, and describes how the linkage 
     of Federal, State, and local resources will--
       (1) improve the economic viability of agriculture by 
     protecting contiguous tracts of land;
       (2) improve the ecological integrity of the ecosystems or 
     watersheds within the region by linking land with high 
     ecological and natural resource value; and
       (3) in the case of a multi-State plan, provide a draft 
     memorandum of agreement among entities in each State.
       (b) Submission and Review.--Within 90 days after receipt of 
     the conservation plan, the Secretary shall review the plan 
     and approve it for implementation and funding under this 
     subtitle if the Secretary determines that the plan and 
     memorandum of agreement meet the criteria specified in 
     subsection (c).
       (c) Criteria for Participation.--The Secretary may approve 
     a plan only if, as determined by the Secretary, the plan 
     provides for each of the following:
       (1) Actions taken under the conservation plan are voluntary 
     and require the consent of willing landowners.
       (2) Criteria specified in the plan and memorandum of 
     agreement assure that enrollments in each conservation 
     program incorporated through the plan are of exceptionally 
     high conservation value.
       (3) The program provides benefits greater than the benefits 
     that would likely be achieved through individual application 
     of the federal conservation programs because of such factors 
     as--
       (A) ecosystem- or watershed-based enrollment criteria;
       (B) lengthier or permanent conservation commitments;
       (C) integrated treatment of special natural resource 
     problems, including preservation and enhancement of natural 
     resource corridors; and
       (D) improved economic viability for agriculture.
       (4) Staffing and marketing, considering both Federal and 
     non-Federal resources, are sufficient to assure program 
     success.
       (d) Approval and Implementation.--Within 90 days after 
     approval of a conservation plan, the Secretary shall begin to 
     provide funds for the implementation of the plan.
       (e) Priority.--In carrying out this section, the Secretary 
     shall give priority to multi-State or multi-tribal plans.

     SEC. 273. FUNDING REQUIREMENTS.

       (a) Cost-Sharing.--As a further condition on the approval 
     of a conservation plan submitted by a non-Federal interest 
     under section 272, the Secretary shall require the non-
     Federal interest to contribute at least 20 percent of the 
     total cost of the Conservation Corridor Program.
       (b) Exception.--The Secretary may reduce the cost-share 
     requirement in the case of a specific activity under the 
     Conservation Corridor Program on good cause and demonstration 
     that the project or activity is likely to achieve 
     extraordinary natural resource benefits.
       (c) Coordination.--The Secretary shall require that non-
     Federal interests contributing financial resources for the 
     Conservation Corridor Program shall implement streamlined 
     paperwork requirements and other procedures to allow for 
     integration with the Federal programs for participants in the 
     program.
       (d) Reservation of Funds.--The Secretary shall direct funds 
     on a priority basis to the Conservation Corridor Program and 
     to projects in areas identified by the plan.
       (e) Administration.--A State may submit multiple plans, but 
     the Secretary shall assure opportunity for submission by each 
     State. Acreage committed as part of approved Conservation 
     Reserve Enhancement Programs shall be considered acreage of 
     the Conservation Reserve Program committed to a Conservation 
     Enhancement Program.
       Amend the table of contents accordingly.

                               H.R. 2646

                       Offered By: Mr. Gilchrest

       Amendment No.24: At the end of the bill, insert the 
     following:

                 TITLE X--CONSERVATION CORRIDOR PROGRAM

     SEC. 1001. CONSERVATION CORRIDOR PROGRAM.

       (a) Purpose.--The purpose of this title is to provide for 
     the establishment of a program that recognizes the leveraged 
     benefit of an ecosystem-based application of the Department 
     of Agriculture conservation programs, addresses the 
     increasing and extraordinary threats to agriculture in many 
     areas of the United States, and recognizes the importance of 
     local and regional involvement in the protection of 
     economically and ecologically important farmlands.
       (b) Establishment.--The Secretary of Agriculture (in this 
     title referred to as the ``Secretary'') shall establish a 
     Conservation Corridor Program through which States, local 
     governments, tribes, and combinations of States may submit, 
     and the Secretary may approve, plans to integrate agriculture 
     and forestry conservation programs of the United States 
     Department of Agriculture with State, local, tribal, and 
     private efforts to address farm preservation, water quality, 
     wildlife, and other conservation needs in critical areas, 
     watersheds, and corridors in a manner that enhances the 
     conservation benefits of the individual programs, tailors 
     programs to State and local needs, and promotes and supports 
     ecosystem and watershed-based conservation.
       (c) Memorandum of Agreement.--On approval of a proposed 
     plan, the Secretary may enter into a memorandum of agreement 
     with a State, a combination of States, local governments, or 
     tribes, that--
       (1) guarantees specific program resources for 
     implementation of the plan;
       (2) establishes different or automatic enrollment criteria 
     than otherwise established by regulation or policy, for 
     specific levels of enrollments of specific conservation 
     programs within the region, if doing so will achieve greater 
     conservation benefits;
       (3) establishes different compensation rates to the extent 
     the parties to the agreement consider justified;
       (4) establishes different conservation practice criteria if 
     doing so will achieve greater conservation benefits;
       (5) provides more streamlined and integrated paperwork 
     requirements; and
       (6) otherwise alters any other requirement established by 
     United States Department of Agriculture policy and regulation 
     to the extent not inconsistent with the statutory 
     requirements and purposes of an individual conservation 
     program.

     SEC. 1002. CONSERVATION ENHANCEMENT PLAN.

       (a) Preparation.--To be eligible to participate in the 
     program under this title, a State, combination of States, 
     political subdivision or agency of a State, tribe, or local 
     government shall submit to the Secretary a plan that proposes 
     specific criteria and commitment of resources in the 
     geographic region designated, and describes how the linkage 
     of Federal, State, and local resources will--
       (1) improve the economic viability of agriculture by 
     protecting contiguous tracts of land;
       (2) improve the ecological integrity of the ecosystems or 
     watersheds within the region by linking land with high 
     ecological and natural resource value; and
       (3) in the case of a multi-State plan, provide a draft 
     memorandum of agreement among entities in each State.
       (b) Submission and Review.--Within 90 days after receipt of 
     the conservation plan, the Secretary shall review the plan 
     and approve it for implementation and funding under this 
     title if the Secretary determines that the plan and 
     memorandum of agreement meet the criteria specified in 
     subsection (c).
       (c) Criteria for Participation.--The Secretary may approve 
     a plan only if, as determined by the Secretary, the plan 
     provides for each of the following:
       (1) Actions taken under the conservation plan are voluntary 
     and require the consent of willing landowners.
       (2) Criteria specified in the plan and memorandum of 
     agreement assure that enrollments in each conservation 
     program incorporated through the plan are of exceptionally 
     high conservation value.
       (3) The program provides benefits greater than the benefits 
     that would likely be

[[Page 18382]]

     achieved through individual application of the federal 
     conservation programs because of such factors as--
       (A) ecosystem- or watershed-based enrollment criteria;
       (B) lengthier or permanent conservation commitments;
       (C) integrated treatment of special natural resource 
     problems, including preservation and enhancement of natural 
     resource corridors; and
       (D) improved economic viability for agriculture.
       (4) Staffing and marketing, considering both Federal and 
     non-Federal resources, are sufficient to assure program 
     success.
       (d) Approval and Implementation.--Within 90 days after 
     approval of a conservation plan, the Secretary shall begin to 
     provide funds for the implementation of the plan.
       (e) Priority.--In carrying out this section, the Secretary 
     shall give priority to multi-State or multi-tribal plans.

     SEC. 1003. FUNDING REQUIREMENTS.

       (a) Cost-Sharing.--As a further condition on the approval 
     of a conservation plan submitted by a non-Federal interest 
     under section 1002, the Secretary shall require the non-
     Federal interest to contribute at least 20 percent of the 
     total cost of the Conservation Corridor Program.
       (b) Exception.--The Secretary may reduce the cost-share 
     requirement in the case of a specific activity under the 
     Conservation Corridor Program on good cause and demonstration 
     that the project or activity is likely to achieve 
     extraordinary natural resource benefits.
       (c) Coordination.--The Secretary shall require that non-
     Federal interests contributing financial resources for the 
     Conservation Corridor Program shall implement streamlined 
     paperwork requirements and other procedures to allow for 
     integration with the Federal programs for participants in the 
     program.
       (d) Reservation of Funds.--The Secretary shall direct funds 
     on a priority basis to the Conservation Corridor Program and 
     to projects in areas identified by the plan.
       (e) Administration.--A State may submit multiple plans, but 
     the Secretary shall assure opportunity for submission by each 
     State. Acreage committed as part of approved Conservation 
     Reserve Enhancement Programs shall be considered acreage of 
     the Conservation Reserve Program committed to a Conservation 
     Enhancement Program.
       Amend the table of contents accordingly.

                               H.R. 2646

                         Offered By: Mr. Gilman

   [Page and line numbers refer to the amendment in the nature of a 
                              substitute]

       Amendment No. 25: Strike section 928 (page 351, beginning 
     line 17), and insert the following new section:

     SEC. 928. EQUAL TREATMENT OF POTATOES, SWEET POTATOES, AND 
                   STORAGE ONIONS.

       Section 508(a)(2) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(a)(2)) is amended by striking ``and potatoes'' 
     and inserting ``, potatoes, sweet potatoes, and storage 
     onions (as defined for purposes of this title)''.

                               H.R. 2646

                      Offered By: Mr. Hall of Ohio

   [Page and line numbers refer to the Amendment in the Nature of a 
                       Substitute (Combes.0110)]

       Amendment No. 26: In section 307, insert after paragraph 
     (7) (page 188, after line 22) the following (and conform the 
     subsequent paragraphs accordingly):
       (8) by striking section 206 (7 U.S.C. 1726);
       In section 307, insert after paragraph (11) as redesignated 
     (page 189, after line 21) the following (and conform the 
     subsequent paragraphs accordingly):
       (12) in section 407(c)(1) (7 U.S.C. 1736a(c)(1))--
       (A) by striking ``The Administrator'' and inserting ``(A) 
     The Administrator''; and
       (B) by adding at the end the following:
       (B) In the case of commodities made available for 
     nonemergency assistance under title II or III for countries 
     in transition from crisis to development or for least 
     developed, net food-importing countries, the Administrator 
     may pay the transportation costs incurred in moving the 
     commodities from designated points of entry or ports of entry 
     abroad to storage and distribution sites and associated 
     storage and distribution costs.

                               H.R. 2646

                      Offered By: Mr. Hall of Ohio

   [Page and line numbers refer to the Amendment in the Nature of a 
                        Substitute (Combes.011)]

       Amendment No. 27: In section 312, insert before subsection 
     (a) (page 198, after line 6) the following (and conform the 
     subsequent subsections accordingly and make such other 
     technical and conforming changes as may be necessary):
       (a) Short Title; Findings; Sense of Congress.--
       (1) Short title.--This section may be cited as the ``George 
     McGovern-Robert Dole International Food for Education and 
     Child Nutrition Program Act''.
       (2) Findings.--Congress finds the following:
       (A) The Global Food for Education Initiative of the 
     Department of Agriculture has worthy goals of feeding hungry 
     children, promoting education, especially among girls, and 
     assisting American farmers.
       (B) The Initiative was inspired in a bipartisan fashion by 
     former Senators George McGovern and Robert Dole and 
     established by the Department of Agriculture under existing 
     authority through the Commodity Credit Corporation.
       (C) The new George McGovern-Robert Dole International Food 
     for Education and Child Nutrition Program will be established 
     under this section beginning on the date of the enactment of 
     this Act.
       (D) However, there is a possible gap between the 
     termination of funding for the Global Food for Education 
     Initiative and the commencement of appropriated funding for 
     the George McGovern-Robert Dole International Food for 
     Education and Child Nutrition Program established under this 
     section.
       (E) The General Accounting Office is completing a review of 
     the Global Food for Education Initiative and will suggest 
     recommendations for the continuation and improvement of the 
     Program.
       (3) Sense of congress.--It is the sense of Congress that--
       (A) the Secretary of Agriculture should continue to operate 
     the Global Food for Education Initiative until such time as 
     amounts are appropriated to carry out the George McGovern-
     Robert Dole International Food for Education and Child 
     Nutrition Program established under this section; and
       (B) the Secretary should implement recommendations for 
     improvement of the Global Food for Education Initiative as 
     contained in the review of the program by the General 
     Accounting Office in a timely manner.

                               H.R. 2646

                      Offered By: Mr. Hall of Ohio

   [Page and line numbers refer to the Amendment in the Nature of a 
                        Substitute (Combes.011)]

       Amendment No. 28: In section 307, insert after paragraph 
     (7) (page 188, after line 22) the following (and conform the 
     subsequent paragraphs accordingly):
       (8) by striking section 206 (7 U.S.C. 1726);
       In section 307, insert after paragraph (11) as redesignated 
     (page 189, after line 21) the following (and conform the 
     subsequent paragraphs accordingly):
       (12) in section 407(c)(1) (7 U.S.C. 1736a(c)(1))--
       (A) by striking ``The Administrator'' and inserting ``(A) 
     The Administrator''; and
       (B) by adding at the end the following:
       (B) In the case of commodities made available for 
     nonemergency assistance under title II or III for countries 
     in transition from crisis to development or for least 
     developed, net food-importing countries, the Administrator 
     may pay the transportation costs incurred in moving the 
     commodities from designated points of entry or ports of entry 
     abroad to storage and distribution sites and associated 
     storage and distribution costs.
       In section 312, insert before subsection (a) (page 198, 
     after line 6) the following (and conform the subsequent 
     subsections accordingly and make such other technical and 
     conforming changes as may be necessary):
       (a) Short Title; Findings; Sense of Congress.--
       (1) Short title.--This section may be cited as the ``George 
     McGovern-Robert Dole International Food for Education and 
     Child Nutrition Program Act''.
       (2) Findings.--Congress finds the following:
       (A) The Global Food for Education Initiative of the 
     Department of Agriculture has worthy goals of feeding hungry 
     children, promoting education, especially among girls, and 
     assisting American farmers.
       (B) The Initiative was inspired in a bipartisan fashion by 
     former Senators George McGovern and Robert Dole and 
     established by the Department of Agriculture under existing 
     authority through the Commodity Credit Corporation.
       (C) The new George McGovern-Robert Dole International Food 
     for Education and Child Nutrition Program will be established 
     under this section beginning on the date of the enactment of 
     this Act.
       (D) However, there is a possible gap between the 
     termination of funding for the Global Food for Education 
     Initiative and the commencement of appropriated funding for 
     the George McGovern-Robert Dole International Food for 
     Education and Child Nutrition Program established under this 
     section.
       (E) The General Accounting Office is completing a review of 
     the Global Food for Education Initiative and will suggest 
     recommendations for the continuation and improvement of the 
     Program.
       (3) Sense of congress.--It is the sense of Congress that--
       (A) the Secretary of Agriculture should continue to operate 
     the Global Food for Education Initiative until such time as 
     amounts are appropriated to carry out the George McGovern-
     Robert Dole International Food for Education and Child 
     Nutrition Program established under this section; and
       (B) the Secretary should implement recommendations for 
     improvement of the Global Food for Education Initiative as 
     contained in the review of the program by the General 
     Accounting Office in a timely manner.

[[Page 18383]]



                               H.R. 2646

                          Offered By: Mr. Holt

       Amendment No. 29: At the end of title IX, insert the 
     following new section:

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

       (a) Public Information Campaign.--Not later than one year 
     after the date of the enactment of this Act, the Secretary of 
     Agriculture shall develop and implement a program to 
     communicate with the public regarding the use of 
     biotechnology in producing food for human consumption. The 
     information provided under the program shall include the 
     following:
       (1) Science-based evidence on the safety of foods produced 
     with biotechnology.
       (2) Scientific data on the human outcomes of the use of 
     biotechnology to produce food for human consumption.
       (b) Authorization of Appropriations.--For each of fiscal 
     years 2002 through 2011 there are authorized to be 
     appropriated such sums as may be necessary to carry out this 
     section.

                               H.R. 2646

                    Offered By: Ms. Hooley of Oregon

       Amendment No. 30: In section 925 (page __, beginning line 
     __), insert ``(other than organically grown caneberries)'' 
     after ``caneberries'' each place it appears.

                               H.R. 2646

                         Offered By: Mr. Inslee

       Amendment No. 31: At the end of the bill, add the following 
     new title:

              TITLE X--ADDITIONAL MISCELLANEOUS PROVISIONS

     SEC. 1001. RENEWABLE ENERGY RESOURCES.

       (a) Environmental Quality Incentives Program.--Section 1240 
     of the Food Security Act of 1985 (16 U.S.C. 3839aa), as 
     amended by section 231 of this Act, is amended--
       (1) by striking ``and'' at the end of paragraph (3);
       (2) by striking the period at the end of paragraph (4); and
       (3) by adding at the end the following:
       ``(5) assistance to farmers and ranchers for the assessment 
     and development of their on-farm renewable resources, 
     including biomass for the production of power and fuels, 
     wind, and solar.''.
       (b) Cooperative State Research, Education, and Extension 
     Service.--The Secretary of Agriculture, through the 
     Cooperative State Research, Education, and Extension Service 
     and, to the extent practicable, in collaboration with the 
     Natural Resources Conservation Service, regional biomass 
     programs under the Department of Energy, and other 
     appropriate entities, may provide education and technical 
     assistance to farmers and ranchers for the development and 
     marketing of renewable energy resources, including biomass 
     for the production of power and fuels, wind, solar, and 
     geothermal.

                               H.R. 2646

             Offered By: Ms. Eddie Bernice Johnson of Texas

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 32: At the end of Subtitle C of title VII 
     (page 313, after line 10), insert the following new section:

     SEC. __. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND DEVELOPMENT 
                   FOR THE DEVELOPING WORLD.

       (a) Grant Program.--The Secretary of Agriculture shall 
     establish a program to award grants to entities described in 
     subsection (b) for the development of agricultural 
     biotechnology with respect to the developing world. The 
     Secretary shall administer and oversee the program through 
     the Foreign Agricultural Service of the Department of 
     Agriculture.
       (b) Partnerships.--(1) In order to be eligible to receive a 
     grant under this section, the grantee must be a participating 
     institution of higher education, a nonprofit organization, or 
     consortium of for profit institutions with in-country 
     agricultural research institutions.
       (2) A participating institution of higher education shall 
     be an historically black or land-grant college or university, 
     an Hispanic serving institution, or a tribal college or 
     university that has agriculture or the biosciences in its 
     curricula.
       (c) Competitive Award.--Grants shall be awarded under this 
     section on a merit-reviewed competitive basis.
       (d) Use of Funds.--The activities for which the grant funds 
     may be expended include the following:
       (1) Enhancing the nutritional content of agricultural 
     products that can be grown in the developing world to address 
     malnutrition through biotechnology.
       (2) Increasing the yield and safety of agricultural 
     products that can be grown in the developing world through 
     biotechnology.
       (3) Increasing through biotechnology the yield of 
     agricultural products that can be grown in the developing 
     world that are drought and stress-resistant.
       (4) Extending the growing range of crops that can be grown 
     in the developing world through biotechnology.
       (5) Enhancing the shelf-life of fruits and vegetables grown 
     in the developing world through biotechnology.
       (6) Developing environmentally sustainable agricultural 
     products through biotechnology.
       (7) Developing vaccines to immunize against life-
     threatening illnesses and other medications that can be 
     administered by consuming genetically engineered agricultural 
     products.
       (e) Funding Source.--Of the funds deposited in the Treasury 
     account known as the Initiative for Future Agriculture and 
     Food Systems on October 1, 2003, and each October 1 
     thereafter through October 1, 2007, the Secretary of 
     Agriculture shall use $5,000,000 during each of fiscal years 
     2004 through 2008 to carry out this section.

                               H.R. 2646

             Offered By: Ms. Eddie Bernice Johnson of Texas

   [Page and line numbers refer to the Amendment in the Nature of a 
                        Substitute (Combes.011)]

       Amendment No. 33: In section 441, add at the end (page 217, 
     line 7) the following: ``Of the amount made available to 
     carry out section 211(c) of the Agricultural Trade Act of 
     1978 (7 U.S.C. 5641(c)) for each of the fiscal years 2002 
     through 2011, the Secretary of Agriculture shall make 
     available $25,000,000 for the provision of commodities to 
     child nutrition programs providing food service under section 
     1114(a) of the Agriculture and Food Act of 1981 (7 U.S.C. 
     1431e).

                               H.R. 2646

                         Offered By: Ms. Kaptur

       Amendment No. 34: Page __, line __, insert the following 
     new section:

     SEC. __. FAMILY FARMER COOPERATIVE MARKETING.

       (a) Definitions.--
       (1) Producer.--Subsection (b) of section 3 of the 
     Agricultural Fair Practices Act of 1967 (7 U.S.C. 2302) is 
     amended--
       (A) by inserting ``poultryman,'' after ``dairyman,''; and
       (B) by adding at the end the following: ``The term includes 
     a person furnishing labor, production management, facilities, 
     or other services for the production of an agricultural 
     product.''.
       (2) Association of producers.--Subsection (c) of such 
     section is amended by inserting ``that engages in the 
     marketing of such agricultural products or of agricultural 
     services described in the second sentence of subsection (b), 
     including associations'' before ``engaged in''.
       (3) Additional definitions.--Such section is further 
     amended by striking subsection (e) and inserting the 
     following new subsections:
       ``(e) The term `accredited association' means an 
     association of producers accredited by the Secretary of 
     Agriculture in accordance with section 6.
       ``(f) The term `designated handler' means a handler that is 
     designated pursuant to section 6.
       ``(g) The terms `bargain' and `bargaining' mean the 
     performance of the mutual obligation of a handler and an 
     accredited association to meet at reasonable times and for 
     reasonable periods of time for the purpose of negotiating in 
     good faith with respect to the price, terms of sale, 
     compensation for products produced or services rendered under 
     contract, or other provisions relating to the products 
     marketed, or the services rendered, by the members of the 
     accredited association or by the accredited association as 
     agent for the members.''.
       (b) Prohibited Practices.--Section 4 of the Agricultural 
     Fair Practices Act of 1967 (7 U.S.C. 2303) is amended--
       (1) in the matter preceding the subsections, by striking 
     ``the following practices;'' and inserting ``any of the 
     following practices:''
       (2) in subsection (a), by inserting ``interfere with, 
     restrain, or'' before ``coerce'';
       (3) by striking ``or'' at the end of subsections (a), (b), 
     (c), (d), and (e) and inserting a period; and
       (4) by adding at the end the following new subsections:
       ``(g) To refuse to bargain in good faith with an accredited 
     association, if the handler is designated pursuant to section 
     6.
       ``(h) To dominate or interfere with the formation or 
     administration of any association of producers or to 
     contribute financial or other support to an association of 
     producers.''.
       (c) Bargaining in Good Faith.--Section 5 of the 
     Agricultural Fair Practices Act of 1967 (7 U.S.C. 2304) is 
     amended to read as follows:

     ``SEC. 5. BARGAINING IN GOOD FAITH.

       ``(a) Clarification of Obligation.--The obligation of a 
     designated handler to bargain in good faith shall apply with 
     respect to an accredited association and the products or 
     services for which the accredited association is accredited 
     to bargain. The good-faith bargaining required between a 
     handler and an accredited association does not require either 
     party to agree to a proposal or to make a concession.
       ``(b) Extension of Same Terms to Accredited Association.--
     If a designated handler purchases a product or service from 
     producers under terms more favorable to such producers than 
     the terms negotiated with an accredited association for the 
     same type of product or services, the handler shall offer the 
     same terms to the accredited association. Failure to extend 
     the same terms to

[[Page 18384]]

     the accredited association shall be considered to be a 
     violation of section 4(g). In comparing terms, the Secretary 
     of Agriculture shall take into consideration (in addition to 
     the stipulated purchase price) any bonuses, premiums, hauling 
     or loading allowances, reimbursement of expenses, or payment 
     for special services of any character which may be paid by 
     the handler, and any sums paid or agreed to be paid by the 
     handler for any other designated purpose than payment of the 
     purchase price.
       ``(c) Mediation and Arbitration.--The Secretary of 
     Agriculture may provide mediation services with respect to 
     bargaining between an accredited association and a designated 
     handler at the request of either the accredited association 
     or the handler. If an impasse in bargaining has occurred (as 
     determined by the Secretary), the Secretary shall provide 
     assistance in proposing and implementing arbitration 
     agreements between the accredited association and the 
     handler. The Secretary may establish a procedure for 
     compulsory and binding arbitration if the Secretary finds 
     that an impasse in bargaining exists and such impasse will 
     result in a serious interruption in the flow of an 
     agricultural product to consumers or will cause substantial 
     economic hardship to producers or handlers involved in the 
     bargaining.''.
       (d) Accreditation of Associations and Designation of 
     Handlers.--The Agricultural Fair Practices Act of 1967 is 
     amended--
       (1) by redesignating sections 6 and 7 (7 U.S.C. 2305, 2306) 
     as sections 9 and 11, respectively; and
       (2) by inserting after section 5 (7 U.S.C. 2304) the 
     following new section:

     ``SEC. 6. ACCREDITATION OF ASSOCIATIONS AND DESIGNATION OF 
                   HANDLERS.

       ``Not later than __ after the date of the enactment of this 
     section, the Secretary shall establish procedures--
       ``(1) to accredit associations seeking to bargain on behalf 
     of producers on an agricultural product or service; and
       ``(2) for designation of handlers with whom producer 
     associations seek to bargain.''.
       (e) Investigative Powers of Secretary.--The Agricultural 
     Fair Practices Act of 1967 (7 U.S.C. 2301 et seq.) is amended 
     by inserting after section 6 (as added by subsection (d)(2)) 
     the following new section:

     ``SEC. 7. INVESTIGATIVE POWERS OF SECRETARY.

       ``(a) Investigative Powers.--The Secretary of Agriculture 
     shall have the following powers to carry out the objectives 
     of this Act, including the conduct of any investigations or 
     hearings:
       ``(1) The Secretary may require any person to establish and 
     maintain such records, make such reports, and provide such 
     other information as the Secretary may reasonably require.
       ``(2) The Secretary and any officer or employee of the 
     Department of Agriculture, upon presentation of credentials 
     and a warrant or such other order of a court as may be 
     required by the Constitution--
       ``(A) shall have a right of entry to, upon, or through any 
     premises in which records required to be maintained under 
     paragraph (1) are located, and
       ``(B) may at reasonable times have access to and copy any 
     records, which any person is required to maintain or which 
     relate to any matter under investigation or in question.
       ``(b) Treatment of Records.--
       ``(1) In general.--Except as provided in paragraph (2), any 
     records, reports, or information obtained under this section 
     shall be available to the public.
       ``(2) Exception.--Upon a showing satisfactory to the 
     Secretary of Agriculture that records, reports, or 
     information acquired under this section, if made public, 
     would divulge confidential business information, the 
     Secretary shall consider such record, report, or information 
     or particular portion thereof confidential in accordance with 
     section 1905 of title 18, United States Code, except that the 
     Secretary may disclose such record, report, or information to 
     other officers, employees, or authorized representatives of 
     the United States concerned with carrying out this Act or 
     when relevant in any proceeding under this Act.
       ``(c) Powers Related to Hearings.--
       ``(1) Attendance of witnesses.--In making inspections and 
     investigations under this Act, the Secretary of Agriculture 
     may require the attendance and testimony of witnesses and the 
     production of evidence under oath.
       ``(2) Subpoena power.--The Secretary, upon application of 
     any party to a hearing held under section 9, shall forthwith 
     issue to such party subpoenas requiring the attendance and 
     testimony of witnesses or the production of evidence 
     requested in such application. Within five days after the 
     service of a subpoena on any person requiring the production 
     of any evidence in the possession of the person or under the 
     control of the person, the person may petition the Secretary 
     to revoke such subpoena. The Secretary shall revoke such 
     subpoena if in the opinion of the Secretary the evidence 
     whose production is required does not relate to any matter in 
     question, or if such subpoena does not describe with 
     sufficient particularity the evidence whose production is 
     required.
       ``(3) Oaths and other matters.--The Secretary, or any 
     officer or employee of the Department of Agriculture 
     designated for such purpose, shall have power to administer 
     oaths, sign and issue subpoenas, examine witnesses, and 
     receive evidence. Witnesses shall be paid the same fees and 
     mileage allowance as are paid witnesses in the courts of the 
     United States.
       ``(d) Failure To Comply.--In the case of any failure or 
     refusal of any person to obey a subpoena or order of the 
     Secretary of Agriculture under this section, any district 
     court of the United States, within the jurisdiction of which 
     such person is found or resides or transacts business, upon 
     the application by the Secretary shall have jurisdiction to 
     issue to such person an order requiring such person to appear 
     to produce evidence if, as, and when so ordered to give 
     testimony relating to the matter under investigation or in 
     question. Any failure to obey such order of the court may be 
     punished by the court as a contempt of court.''.
       (f) Administrative Proceedings To Prevent Prohibited 
     Practices.--The Agricultural Fair Practices Act of 1967 (7 
     U.S.C. 2301 et seq.) is amended by inserting after section 7 
     (as added by subsection (e)) the following new section:

     ``SEC. 8. ADMINISTRATIVE PROCEEDINGS TO PREVENT PROHIBITED 
                   PRACTICES.

       ``(a) Petition.--Any person complaining of any violation of 
     section 4 or other provision of this Act may apply to the 
     Secretary of Agriculture by petition, which shall briefly 
     state the facts serving as the basis for the complaint. If, 
     in the opinion of the Secretary, the facts contained in the 
     petition warrant further action, the Secretary shall forward 
     a copy of the petition to the accredited association or 
     handler named in the petition, who shall be called upon to 
     satisfy the complaint, or to answer it in writing, within a 
     reasonable time to be prescribed by the Secretary.
       ``(b) Investigation and Complaint.--If there appears to be, 
     in the opinion of the Secretary, reasonable grounds for 
     investigating a complaint made under subsection (a), the 
     Secretary of Agriculture shall investigate such complaint or 
     notification. In the opinion of the Secretary, if the 
     investigation substantiates the existence of a violation of 
     section 4 or other provision of this Act, the Secretary may 
     cause a complaint to be issued. The Secretary shall have the 
     complaint served by registered mail or certified mail or 
     otherwise on the person concerned and afford such person an 
     opportunity for a hearing thereon before a duly authorized 
     examiner of the Secretary in any place in which the subject 
     of the complaint is engaged in business.
       ``(c) Hearing.--The person complained of shall have the 
     right to file an answer to the original and any amended 
     complaint and to appear in person or otherwise and give 
     testimony. The person who filed the charge shall also have 
     the right to appear in person or otherwise and give 
     testimony. Any such proceeding shall, as far as practicable, 
     be conducted in accordance with the rules of evidence and the 
     rules of civil procedure applicable in the district courts of 
     the United States.
       ``(d) Orders.--If, upon a preponderance of the evidence, 
     the Secretary of Agriculture is of the opinion that the 
     person subject to the complaint has violated section 4 or 
     other provision of this Act, the Secretary shall issue an 
     order containing the Secretary's findings of fact and 
     requiring the person to cease and desist from such violation. 
     The Secretary may order such further affirmative action, 
     including an award of damages to compensate the person filing 
     the petition for the damages sustained, as will effectuate 
     the policies of this Act and make the person filing the 
     petition whole.
       ``(e) Complaints Instituted by Secretary.--The Secretary of 
     Agriculture may at any time institute an investigation under 
     subsection (b) if there appears to be, in the opinion of the 
     Secretary, reasonable grounds for the investigation and the 
     matter to be investigated is such that a petition is 
     authorized to be made to the Secretary. The Secretary shall 
     have the same power and authority to proceed with any 
     investigation instituted under this subsection as though a 
     petition had been filed under subsection (a), including the 
     power to make and enforce any order.
       ``(f) Judicial Review.--
       ``(1) Obtaining review.--Any person aggrieved by a final 
     order of the Secretary of Agriculture issued under subsection 
     (d) may obtain review of such order in the United States 
     Court of Appeals for the District of Columbia by submitting 
     to such court within 30 days from the date of such order a 
     written petition praying that such order be modified or set 
     aside.
       ``(2) Treatment of findings.--The findings of the Secretary 
     with respect to questions of fact, if supported by 
     substantial evidence on the record, shall be conclusive.
       ``(3) Effect of failure to seek timely review.--If no 
     petition for review, as provided in paragraph (1), is filed 
     within 30 days after service of the Secretary's order, the 
     order shall not be subject to review in any civil or criminal 
     proceeding for enforcement, and the findings of fact and 
     order of the Secretary shall be conclusive in connection with 
     any petition for enforcement which is filed by the Secretary 
     after the expiration of such period. In any such case, the 
     clerk of the court, unless otherwise ordered by the court, 
     shall

[[Page 18385]]

     forthwith enter a decree enforcing the order and shall 
     transmit a copy of such decree to the Secretary and the 
     person named in the complaint.
       ``(4) Effect on orders of the secretary.--The commencement 
     of proceedings under this section shall not operate as a stay 
     of an order of the Secretary under subsection (d), unless 
     specifically ordered by the court.''.
       (g) Preemption.--The Agricultural Fair Practices Act of 
     1967 (7 U.S.C. 2301 et seq.) is amended by inserting after 
     section 9 (as redesignated by subsection (d)(1)) the 
     following new section:

     ``SEC. 10. PREEMPTION.

       ``This Act shall not invalidate the provisions of any 
     existing or future State law dealing with the same subjects 
     as this Act, except that such State law may not permit any 
     action that is prohibited by this Act. This Act shall not 
     deprive the proper State courts of jurisdiction under State 
     laws dealing with the same subjects as this Act.''.

                               H.R. 2646

                         Offered By: Ms. Kaptur

       Amendment No. 35:  At the end of the bill, insert the 
     following:

           TITLE X--BIOFUELS ENERGY INDEPENDENCE ACT OF 2001

     SEC. 1001. SHORT TITLE.

       This title may be cited as the ``Biofuels Energy 
     Independence Act of 2001''.

     SEC. 1002. FINDINGS.

       The Congress finds as follows:
       (1) Currently the United States annually consumes about 
     164,000,000,000 gallons of vehicle fuels and 5,600,00,000 
     gallons of heating oil. In 2000, 52.9 percent of these fuels 
     were imported, yielding a $109,000,000,000 trade deficit with 
     the rest of the world.
       (2) This Act would shift America's dependence away from 
     foreign petroleum as an energy source toward alternative, 
     renewable, domestic agricultural sources.
       (3) Strategic Petroleum Reserve policy should encourage 
     domestic production to the greatest extent possible.
       (4) 92.2 percent of the Strategic Petroleum Reserve has 
     been purchased from foreign sources: 41.9 percent from 
     Mexico, 24 percent from the United Kingdom, and over 20 
     percent from OPEC nations.
       (5) Strategic Petroleum Reserve policy also should 
     encourage the development of alternatives to the Nation's 
     reliance on petroleum such as biomass fuels.
       (6) The benefits of biofuels are as follows:
       (A) Energy security.--
       (i) With agricultural commodity prices reaching record lows 
     and petroleum prices reaching record highs, it is clear that 
     more can and should be done to utilize domestic surpluses of 
     biobased oils to enhance the Nation's energy security.
       (ii) Biofuels can be manufactured using existing industrial 
     capacity.
       (iii) Biofuels can be used with existing petroleum 
     infrastructure and conventional equipment.
       (iv) Biofuels can start to address our dependence on 
     foreign energy sources immediately.
       (B) Economic security.--
       (i) With continued dependence upon imported sources of oil, 
     our Nation is strategically vulnerable to disruptions in our 
     oil supply.
       (ii) Renewable biofuels domestically produced have the 
     potential for ending this vulnerable dependence on imported 
     oil.
       (iii) Increased use of renewable biofuels would result in 
     significant economic benefits to rural and urban areas and 
     would help reduce the trade deficit.
       (iv) According to the Department of Agriculture, a 
     sustained annual market of 100,000,000 gallons of biodiesel 
     would result in $170,000,000 in increased income to farmers.
       (v) Farmer-owned biofuels production has already resulted 
     in improved income for farmers, as evidenced by the 
     experience with a State-supported program in Minnesota that 
     has helped to increase prices to corn producers by $1.00 per 
     bushel.
       (C) Environmental security.--
       (i) The use of grain-based ethanol reduces greenhouse gas 
     emissions from 35 to 46 percent compared with conventional 
     gasoline. Biomass ethanol provides an even greater reduction.
       (ii) The American Lung Association of Metropolitan Chicago 
     credits ethanol-blended reformulated gasoline with reducing 
     smog-forming emissions by 25 percent since 1990.
       (iii) Ethanol reduces tailpipe carbon monoxide emissions by 
     as much as 30 percent.
       (iv) Ethanol reduces exhaust volatile organic compounds 
     emissions by 12 percent.
       (v) Ethanol reduces toxic emissions by 30 percent.
       (vi) Ethanol reduces particulate emissions, especially 
     fine-particulates that pose a health threat to children, 
     senior citizens, and those with respiratory ailments.
       (vii) Biodiesel contains no sulfur of aromatics associated 
     with air pollution.
       (viii) The use of biodiesel provides a 78.5 percent 
     reduction in CO2 emissions compared to petroleum 
     diesel and when burned in a conventional engine provides a 
     substantial reduction of unburned hydrocarbons, carbon 
     monoxide, and particulate matter.

         Subtitle A--Biofuels Feedstocks Energy Reserve Program

     SEC. 1011. ESTABLISHMENT.

       The Secretary of Agriculture (in this subtitle referred to 
     as the ``Secretary'') may establish and administer a reserve 
     of agricultural commodities (known as the ``Biofuels 
     Feedstocks Energy Reserve'') for the purpose of--
       (1) providing feedstocks to support and further the 
     production of energy from biofuels; and
       (2) supporting the biofuels energy industry when production 
     is at risk of declining due to reduced feedstocks or 
     significant commodity price increases.

     SEC. 1012. PURCHASES.

       (a) In General.--The Secretary may purchase agricultural 
     commodities at commercial rates, subject to subsection (b), 
     in order to establish, maintain, or enhance the Biofuels 
     Feedstocks Energy Reserve when--
       (1)(A) the commodities are in abundant supply; and
       (B) there is need for adequate carryover stocks to ensure a 
     reliable supply of the commodities to meet the purposes of 
     the reserve; or
       (2) it is otherwise necessary to fulfill the needs and 
     purposes of the biofuels energy reserve program.
       (b) Limitation.--The agricultural commodities purchased for 
     the Biofuels Feedstocks Energy Reserve shall be--
       (1) of the type and quantity necessary to provide not less 
     than 1-year's utilization for renewable energy purposes; and
       (2) in such additional quantities to provide incentives for 
     research and development of new renewable fuels and bio-
     energy initiatives.

     SEC. 1013. RELEASE OF STOCKS.

       Whenever the market price of a commodity held in the 
     Biofuels Feedstocks Energy Reserve exceeds 100 percent of the 
     economic cost of producing the commodity (as determined by 
     the Economic Research Service using the best available 
     information, and based on a 3-year moving average), the 
     Secretary shall release stocks of the commodity from the 
     reserve at cost of acquisition, in amounts determined 
     appropriate by the Secretary.

     SEC. 1014. STORAGE PAYMENTS.

       (a) In General.--The Secretary shall provide for the 
     storage of agricultural commodities purchased for the 
     Biofuels Feedstocks Energy Reserve by making payments to 
     producers for the storage of the commodities. The payments 
     shall--
       (1) be in such amounts, under such conditions, and at such 
     times as the Secretary determines appropriate to encourage 
     producers to participate in the program; and
       (2) reflect local, commercial storage rates, subject to 
     appropriate conditions concerning quality management and 
     other factors.
       (b) Announcement of Program.--
       (1) Time of announcement.--The Secretary shall announce the 
     terms and conditions of the storage payments for a crop of a 
     commodity by--
       (A) in the case of wheat, December 15 of the year in which 
     the crop of wheat was harvested;
       (B) in the case of feed grains, March 15 of the year 
     following the year in which the crop of corn was harvested; 
     and
       (C) in the case of other commodities, such dates as may be 
     determined by the Secretary.
       (2) Content of announcement.--In the announcement, the 
     Secretary shall specify the maximum quantity of a commodity 
     to be stored in the Biofuels Feedstocks Energy Reserve that 
     the Secretary determines appropriate to promote the orderly 
     marketing of the commodity, and to ensure an adequate supply 
     for the production of biofuels.
       (c) Reconcentration.--The Secretary may, with the 
     concurrence of the owner of a commodity stored under this 
     program, reconcentrate the commodity stored in commercial 
     warehouses at such points as the Secretary considers to be in 
     the public interest, taking into account such factors as 
     transportation and normal marketing patterns. The Secretary 
     shall permit rotation of stocks and facilitate maintenance of 
     quality under regulations that assure that the holding 
     producer or warehouseman shall, at all times, have available 
     for delivery at the designated place of storage both the 
     quantity and quality of the commodity covered by the 
     producer's or warehouseman's commitment.
       (d) Management.--Whenever a commodity is stored under this 
     section, the Secretary may buy and sell at an equivalent 
     price, allowing for the customary location and grade 
     differentials, substantially equivalent quantities of the 
     commodity in different locations or warehouses to the extent 
     needed to properly handle, rotate, distribute, and locate the 
     commodity that the Commodity Credit Corporation owns or 
     controls. The purchases to offset sales shall be made within 
     2 market days following the sales. The Secretary shall make a 
     daily list available showing the price, location, and 
     quantity of the transactions.
       (e) Review.--In announcing the terms and conditions under 
     which storage payments will be made under this section, the 
     Secretary shall review standards concerning the quality of a 
     commodity to be stored in the

[[Page 18386]]

     Biofuels Feedstocks Energy Reserve, and such standards should 
     encourage only quality commodities, as determined by the 
     Secretary. The Secretary shall review inspection, 
     maintenance, and stock rotation requirements and take the 
     necessary steps to maintain the quality of the commodities 
     stored in the reserve.

     SEC. 1015. USE OF COMMODITY CREDIT CORPORATION.

       The Secretary shall use the Commodity Credit Corporation, 
     to the extent feasible, to carry out this subtitle. To the 
     maximum extent practicable consistent with the effective and 
     efficient administration of this subtitle, the Secretary 
     shall utilize the usual and customary channels, facilities, 
     and arrangements of trade and commerce.

     SEC. 1016. REGULATIONS.

       Not later than 60 days after November 28, 2001, the 
     Secretary shall issue such regulations as are necessary to 
     carry out this subtitle.

               Subtitle B--Biofuels Financial Assistance

     SEC. 1021. LOANS AND LOAN GUARANTEES.

       (a) In General.--The Secretary of Agriculture (in this 
     section referred to as the ``Secretary'') may make and 
     guarantee loans for the production, distribution, 
     development, and storage of biofuels.
       (b) Eligibility.--
       (1) In general.--Except as provided in paragraph (2), an 
     applicant for a loan or loan guarantee under this section 
     shall be eligible to receive such a loan or loan guarantee 
     if--
       (A) the applicant is a farmer, member of an association of 
     farmers, member of a farm cooperative, municipal entity, 
     nonprofit corporation, State, or Territory; and
       (B) the applicant is unable to obtain sufficient credit 
     elesewhere to finance the actual needs of the applicant at 
     reasonable rates and terms, taking into consideration 
     prevailing private and cooperative rates and terms in the 
     community in or near which the applicant resides for loans 
     for similar purposes and periods of time.
       (2) Loan guarantee eligibility precludes loan 
     eligibility.--An applicant who is eligible for a loan 
     guarantee under this section shall not be eligible for a loan 
     under this section.
       (c) Loan Terms.--
       (1) Interest rate.--Interest shall be payable on a loan 
     under this section at the rate at which interest is payable 
     on obligations issued by United States for a similar period 
     of time.
       (2) Repayment period.--A loan under this section shall be 
     repayable in not less than 5 years and not more than 20 
     years.
       (d) Revolving Fund.--
       (1) Establishment.--The Secretary shall establish a 
     revolving fund for the making of loans under this section.
       (2) Deposits.--The Secretary shall deposit into the 
     revolving fund all amounts received on account of loans made 
     under this section.
       (3) Payments.--The Secretary shall make loans under this 
     section, and make payments pursuant to loan guarantees 
     provided under this section, from amounts in the revolving 
     fund.
       (e) Regulations.--The Secretary may prescribe such 
     regulations as may be necessary to carry out this section.
       (f) Limitations on Authorization of Appropriations.--For 
     the cost (as defined in section 502(5) of the Federal Credit 
     Reform Act of 1990) of loans and loan guarantees under this 
     section, there are authorized to be appropriated to the 
     revolving fund established under subsection (d) such sums as 
     may be necessary for fiscal years 2002 through 2009.

               Subtitle C--Funding Source and Allocations

     SEC. 1031. FUNDING FOR CONSERVATION FUNDING.

       (a) Reduction in Fixed Decoupled Payments and Counter-
     Cyclical Payments.--Notwithstanding sections 104 and 105, the 
     Secretary of Agriculture (in this subtitle referred to as the 
     Secretary) shall reduce by $2,000,000,000 the total amount 
     otherwise required to be paid under such sections in each of 
     fiscal years 2002 through 2011, in accordance with this 
     section.
       (b) Maximum Total Payments by Type and Fiscal Year.--In 
     making the reductions required by subsection (a), the 
     Secretary shall ensure that--
       (1) the total amount paid under section 104 does not 
     exceed--
       (A) $3,425,000,000 in fiscal year 2002; or
       (B) $4,325,000,000 in any of fiscal years 2003 through 
     2011; and
       (2) the total amount paid under section 105 does not 
     exceed--
       (A) $3,332,000,000 in fiscal year 2003;
       (B) $4,494,000,000 in fiscal year 2004;
       (C) $4,148,000,000 in fiscal year 2005;
       (D) $3,974,000,000 in fiscal year 2006;
       (E) $3,701,000,000 in fiscal year 2007;
       (F) $3,222,000,000 in fiscal year 2008;
       (G) $2,596,000,000 in fiscal year 2009;
       (H) $2,057,000,000 in fiscal year 2010; or
       (I) $1,675,000,000 in fiscal year 2011.

                               H.R. 2646

                         Offered By: Ms. Kaptur

       Amendment No. 36: At the end of title IX, insert the 
     following new section:

     SEC. __. REGULATION OF COMMERCE IN POULTRY AND POULTRY 
                   PRODUCTS UNDER PACKERS AND STOCKYARDS ACT, 
                   1921.

       (a) Removal of Poultry Slaughter Requirement From 
     Definitions.--Section 2(a) of the Packers and Stockyards Act, 
     1921 (7 U.S.C. 182), is amended--
       (1) by striking paragraph (8) and inserting the following 
     new paragraph:
       ``(8) The term `poultry grower' means any person engaged in 
     the business of raising or caring for live poultry under a 
     poultry growing arrangement, whether the poultry is owned by 
     such person or by another person;'';
       (2) in paragraph (9), by striking ``and cares for live 
     poultry for delivery, in accord with another's instructions, 
     for slaughter'' and inserting ``or cares for live poultry in 
     accord with another person's instructions''; and
       (3) in paragraph (10), by striking ``for the purpose of 
     either slaughtering it or selling it for slaughter by 
     another''.
       (b) Administrative Enforcement Authority Over Live Poultry 
     Dealers.--Sections 203, 204, and 205 of such Act (7 U.S.C. 
     193, 194, 195) are amended by inserting ``or live poultry 
     dealer'' after ``packer'' each place it appears.
       (c) Authority To Request Temporary Injunction or 
     Restraining Order.--Section 408 of such Act (7 U.S.C. 229) is 
     amended by striking ``on account of poultry'' and inserting 
     ``on account of poultry or poultry care''.
       (d) Violations by Live Poultry Dealers.--Section 411 of 
     such Act (7 U.S.C. 228b-2) is amended--
       (1) in subsection (a), by striking ``any provision of 
     section 207 or section 410 of''; and
       (2) in subsection (b), by striking ``any provisions of 
     section 207 or section 410'' and inserting ``any provision''.

                               H.R. 2646

                        Offered By: Mr. Kucinich

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 37: At the end of title IX (page 354, after 
     line 16), insert the following new section:

     SEC. __. CONTRACT LIMITATIONS REGARDING SALE OF GENETICALLY 
                   ENGINEERED SEEDS, PLANTS, AND ANIMALS.

       (a) Limitations.--Any provision of any contract for the 
     sale of a genetically engineered animal, genetically 
     engineered plant, or genetically engineered seed to a 
     purchaser for use in agricultural production is hereby 
     declared against public policy and unenforceable if such 
     provision--
       (1) in the case of a sale of genetically engineered plants 
     or genetically engineered seeds, prohibits the purchaser from 
     retaining a portion of the harvested crop for future crop 
     planting by the purchaser or charges a fee to retain a 
     portion of the harvested crop for future crop planting;
       (2) limits the ability of the purchaser to recover damages 
     from the biotech company for a genetically engineered animal, 
     genetically engineered plant, or genetically engineered seed 
     that does not perform as advertised.
       (3) shifts any liability from the biotech company to the 
     purchaser;
       (4) requires the purchaser to grant agents of the seller 
     access to the purchaser's property;
       (5) mandates arbitration of any disputes between the 
     biotech company and the purchaser;
       (6) mandates any court of jurisdiction for settlement of 
     disputes; or
       (7) imposes any unfair condition upon the purchaser, as 
     determined by the Secretary of Agriculture or a court.
       (b) Definitions.--In this section:
       (1) Genetically engineered animal.--The term ``genetically 
     engineered animal'' means an animal that contains a 
     genetically engineered material or was produced with a 
     genetically engineered material. An animal shall be 
     considered to contain a genetically engineered material or to 
     have been produced with a genetically engineered material if 
     the animal has been injected or otherwise treated with a 
     genetically engineered material or is the offspring of an 
     animal that has been so injected or treated.
       (2) Genetically engineered plant.--The term ``genetically 
     engineered plant'' means a plant that contains a genetically 
     engineered material or was produced from a genetically 
     engineered seed. A plant shall be considered to contain a 
     genetically engineered material if the plant has been 
     injected or otherwise treated with a genetically engineered 
     material (except that the use of manure as a fertilizer for 
     the plant may not be construed to mean that the plant is 
     produced with a genetically engineered material.
       (3) Genetically engineered seed.--The term ``genetically 
     engineered seed'' means a seed that contains a genetically 
     engineered material or was produced with a genetically 
     engineered material. A seed shall be considered to contain a 
     genetically engineered material or to have been produced with 
     a genetically engineered material if the seed (or the plant 
     from which the seed is derived) has been injected or 
     otherwise treated with a genetically engineered material 
     (except that the use of manure as a fertilizer for the plant 
     may not be construed to mean that any resulting seeds are 
     produced with a genetically engineered material.
       (4) Genetically engineered material.--The term 
     ``genetically engineered material''

[[Page 18387]]

     means material that has been altered at the molecular or 
     cellular level by means that are not possible under natural 
     conditions or processes (including recombinant DNA and RNA 
     techniques, cell fusion, microencapsulation, 
     macroencapsulation, gene deletion and doubling, introducing a 
     foreign gene, and changing the positions of genes), other 
     than a means consisting exclusively of breeding, conjugation, 
     fermentation, hybridization, in vitro fertilization, or 
     tissue culture.
       (5) Biotech company.--The term ``biotech company'' means a 
     person engaged in the business of creating genetically 
     engineered material and obtaining the patent rights to that 
     material for the purposes of commercial exploitation of that 
     material. The term does not include the employees of such 
     person.

                               H.R. 2646

                        Offered By: Mr. Kucinich

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 38: In subsection (g)(2) in the quoted matter 
     in section 747 of the bill (page 302, line 16), strike ``one 
     percent'' and insert ``10 percent''.

                               H.R. 2883

                         Offered By: Mr. LaHood

       Amendment No. 39: Page 12, beginning on line 1, strike 
     section 306 (page 12, line 1, through page 19, line 18).

                               H.R. 2646

                        Offered By: Mr. Lampson

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 40: In section 183, strike the paragraph (3) 
     being added by subsection (a) (page 131, lines 8 through 13), 
     and insert the following new paragraph:
       ``(3) Limitation on counter-cyclical payments.--
       ``(A) General rule.--The total amount of counter-cyclical 
     payments that a person may receive during any crop year shall 
     not exceed the amount specified in paragraph (2), as in 
     effect on the day before the date of the enactment of the 
     Farm Security Act of 2001.''.
       ``(B) Special rule.--This subparagraph shall apply only 
     with regard to counter-cyclical payments attributable to rice 
     contract acres in a State wherein plantings of rice on 
     contract acres declined by more than thirty percent in the 
     2001 crop year compared to the 1995 crop year. 
     Notwithstanding section 1001A(b)(3)(A), the total amount of 
     counter-cyclical payments, on a per-acre basis, that a 
     landowner who is not actively engaged (consistent with 
     section 1001A(b)(2)) in the production of a covered commodity 
     on such acreage may receive during any crop year shall not 
     exceed an amount that is equal to the greater of--
       ``(i) the proportionate share of the payment that is 
     commensurate to the proportion that the contribution of the 
     land represents to the operation on the contract acres, as 
     determined by the appropriate county committee; or
       ``(ii) the proportionate share of the payment that is 
     commensurate with the share of the crop that the landowner 
     would have received under a normal and customary share rent 
     contract for the production of a covered commodity in the 
     area, as determined by the county committee.''.

                               H.R. 2646

                   Offered By: Mr. Miller of Florida

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 41: Strike sections 151, 152, and 153 (page 
     75, line 19, through page 102, line 20) and insert the 
     following new section:

     SEC. 151. SUGAR PROGRAM.

       (a) Extension of Program at Reduced Loan Rates.--Section 
     156 of the Federal Agriculture Improvement and Reform Act of 
     1996 (7 U.S.C. 7272) is amended--
       (1) in subsection (a), by striking ``sugar.'' and inserting 
     ``sugar through the 2001 crop of sugercane and 17 cents per 
     pound for raw cane sugar for the 2002 through 2011 crops of 
     sugarcane.'';
       (2) in subsection (b), by striking ``sugar.'' and inserting 
     ``sugar through the 2001 crop of sugar beets and 21.6 cents 
     per pound for refined beet sugar for the 2002 through 2011 
     crops of sugar beets.''; and
       (3) in subsection (i), by striking ``2002'' and inserting 
     ``2011''.
       (b) Expiration of Marketing Assessment.--Effective October 
     1, 2003, subsection (f) of section 156 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7251) is repealed.
       (c) Increase in Forfeiture Penalty.--Subsection (g)(2) of 
     section 156 of the Federal Agriculture Improvement and Reform 
     Act of 1996 (7 U.S.C. 7251) is amended by striking ``1 cent'' 
     and inserting ``2 cents''.
       (d) Availability of Savings for Conservation and 
     Environmental Stewardship Programs.--
       (1) In general.--The Secretary shall use funds appropriated 
     pursuant to the authorization of appropriations in paragraph 
     (3) to augment conservation and environmental stewardship 
     programs established or amended in title II of this Act or 
     for other conservation and environmental programs 
     administered by the Department of Agriculture.
       (2) Priority.--In using the funds appropriated pursuant to 
     the authorization of appropriations in paragraph (3), the 
     Secretary shall give priority to conservation and 
     environmental programs administered by the Department of 
     Agriculture that conserve, restore, or enhance the Florida 
     Everglades ecosystem.
       (3) Authorization of appropriations.--There is authorized 
     to be appropriated to the Secretary $30,000,000 for each of 
     the fiscal years 2002 through 2011. Amounts appropriated 
     pursuant to this authorization of appropriations shall be 
     available until expended and are in addition to, and not in 
     place of, other funds made available under this Act or any 
     other Act for the programs referred to in paragraph (1).

                               H.R. 2646

                   Offered By: Mr. Miller of Florida

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 42: Strike sections 151, 152, and 153 (page 
     75, line 19, through page 102, line 20) and insert the 
     following new section:

     SEC. 151. SUGAR PROGRAM.

       (a) Extension of Program at Reduced Loan Rates.--Section 
     156 of the Federal Agriculture Improvement and Reform Act of 
     1996 (7 U.S.C. 7272) is amended--
       (1) in subsection (a), by striking ``sugar.'' and inserting 
     ``sugar through the 2001 crop of sugercane and 17 cents per 
     pound for raw cane sugar for the 2002 through 2011 crops of 
     sugarcane.'';
       (2) in subsection (b), by striking ``sugar.'' and inserting 
     ``sugar through the 2001 crop of sugar beets and 21.6 cents 
     per pound for refined beet sugar for the 2002 through 2011 
     crops of sugar beets.''; and
       (3) in subsection (i), by striking ``2002'' and inserting 
     ``2011''.
       (b) Expiration of Marketing Assessment.--Effective October 
     1, 2003, subsection (f) of section 156 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7251) is repealed.
       (c) Increase in Forfeiture Penalty.--Subsection (g)(2) of 
     section 156 of the Federal Agriculture Improvement and Reform 
     Act of 1996 (7 U.S.C. 7251) is amended by striking ``1 cent'' 
     and inserting ``2 cents''.

                               H.R. 2646

                   Offered By: Mr. Miller of Florida

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 43: Strike chapter 2 of subtitle C of title I 
     (page 75, line 18, through page 102, line 20), relating to 
     sugar.
       At the end of subtitle E of title II (page 150, after line 
     14), insert the following new section:

     SEC. 245. ADDITIONAL FUNDS FOR CONSERVATION AND ENVIRONMENTAL 
                   STEWARDSHIP PROGRAMS.

       (a) Use of Funds; Priority.--The Secretary of Agriculture 
     shall use funds appropriated pursuant to the authorization of 
     appropriations in subsection (b) to augment conservation and 
     environmental stewardship programs established or amended in 
     this title or for other appropriate conservation and 
     environmental programs, as determined by the Secretary. In 
     using such funds, the Secretary shall give priority to 
     programs that conserve, restore, or enhance the Florida 
     Everglades ecosystem.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary $30,000,000 for each of 
     the fiscal years 2002 through 2011. Amounts appropriated 
     pursuant to this authorization of appropriations shall be 
     available until expended and are in addition to, and not in 
     place of, other funds made available under this Act or any 
     other Act for the programs referred to in subsection (a).

                               H.R. 2646

                   Offered By: Mr. Miller of Florida

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 44: Strike sections 151, 152, and 153 (page 
     75, line 19, through page 102, line 20) and insert the 
     following new section:
       Strike sections 151, 152, and 153 (page 75, line 19, 
     through page 102, line 20) and insert the following new 
     section:

     SEC. 151. SUGAR PROGRAM.

       (a) Extension of Program at Reduced Loan Rates.--Section 
     156 of the Federal Agriculture Improvement and Reform Act of 
     1996 (7 U.S.C. 7272) is amended--
       (1) in subsection (a), by striking ``sugar.'' and inserting 
     ``sugar through the 2001 crop of sugercane and 17 cents per 
     pound for raw cane sugar for the 2002 through 2011 crops of 
     sugarcane.'';
       (2) in subsection (b), by striking ``sugar.'' and inserting 
     ``sugar through the 2001 crop of sugar beets and 21.6 cents 
     per pound for refined beet sugar for the 2002 through 2011 
     crops of sugar beets.''; and
       (3) in subsection (i), by striking ``2002'' and inserting 
     ``2011''.
       (b) Expiration of Marketing Assessment.--Effective October 
     1, 2003, subsection (f) of section 156 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7251) is repealed.

[[Page 18388]]

       (c) Increase in Forfeiture Penalty.--Subsection (g)(2) of 
     section 156 of the Federal Agriculture Improvement and Reform 
     Act of 1996 (7 U.S.C. 7251) is amended by striking ``1 cent'' 
     and inserting ``2 cents''.
       (d) Availability of Savings for Conservation and 
     Environmental Stewardship Programs.--
       (1) In general.--The Secretary shall use funds appropriated 
     pursuant to the authorization of appropriations in paragraph 
     (2) to augment conservation and environmental stewardship 
     programs established or amended in title II of this Act or 
     for other conservation and environmental programs 
     administered by the Department of Agriculture.
       (2) Authorization of appropriations.--There is authorized 
     to be appropriated to the Secretary $30,000,000 for each of 
     the fiscal years 2002 through 2011. Amounts appropriated 
     pursuant to this authorization of appropriations shall be 
     available until expended and are in addition to, and not in 
     place of, other funds made available under this Act or any 
     other Act for the programs referred to in paragraph (1).

                               H.R. 2646

                        Offered By: Mrs. Morella

       Amendment No. 45: At the end of title IX, insert the 
     following new section:

     SEC. __. ENFORCEMENT OF THE HUMANE METHODS OF SLAUGHTER ACT 
                   OF 1958.

       (a) Findings.--Congress finds as follows:
       (1) Public demand for passage of Public Law 85-765 (7 
     U.S.C. 1901 et seq.; commonly known as the ``Humane Methods 
     of Slaughter Act of 1958'') was so great that when President 
     Eisenhower was asked at a press conference if he would sign 
     the bill, he replied, ``If I went by mail, I'd think no one 
     was interested in anything but humane slaughter''.
       (2) The Humane Methods of Slaughter Act of 1958 requires 
     that animals be rendered insensible to pain when they are 
     slaughtered.
       (3) Scientific evidence indicates that treating animals 
     humanely results in tangible economic benefits.
       (4) The United States Animal Health Association passed a 
     resolution at a meeting in October 1998 to encourage strong 
     enforcement of the Humane Methods of Slaughter Act of 1958 
     and reiterated support for the resolution at a meeting in 
     2000.
       (5) The Secretary of Agriculture is responsible for fully 
     enforcing the Act, including monitoring compliance by the 
     slaughtering industry.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Secretary of Agriculture should fully enforce Public Law 
     85-765 (7 U.S.C. 1901 et seq.; commonly known as the ``Humane 
     Methods of Slaughter Act of 1958'') by ensuring that humane 
     methods in the slaughter of livestock--
       (1) prevent needless suffering;
       (2) result in safer and better working conditions for 
     persons engaged in the slaughtering industry;
       (3) bring about improvement of products and economies in 
     slaughtering operations; and
       (4) produce other benefits for producers, processors, and 
     consumers that tend to expedite an orderly flow of livestock 
     and livestock products in interstate and foreign commerce.
       (c) Policy of the United States.--It is the policy of the 
     United States that the slaughtering of livestock and the 
     handling of livestock in connection with slaughter shall be 
     carried out only by humane methods, as provided by Public Law 
     85-765 (7 U.S.C. 1901 et seq.; commonly known as the ``Humane 
     Methods of Slaughter Act of 1958'').   

                                     

                               H.R. 2646

                       Offered By: Mr. Pickering

       Amendment No. 46: At the end of title IX, add the following 
     section:

     SEC. 9__. MARKET NAME FOR PANGASIUS FISH SPECIES.

       The term ``catfish'' may not be considered to be a common 
     or usual name (or part thereof) for the fish Pangasius 
     bocourti, or for any other fish not classified within the 
     family Ictalariidae, for purposes of section 403 of the 
     Federal Food, Drug, and Cosmetic Act, including with respect 
     to the importation of such fish pursuant to section 801 of 
     such Act.

                               H.R. 2646

                        Offered By: Mr. Sanders

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 47: At the end of chapter 1 of subtitle C of 
     title I (page 75, after line 17), insert the following new 
     section:

     SEC. __. NATIONAL COUNTER-CYCLICAL INCOME SUPPORT PROGRAM FOR 
                   DAIRY PRODUCERS.

       (a) Definitions.--In this section:
       (1) Board.--The term ``Board'' means a Regional Supply 
     Management Board established under subsection (b)(4).
       (2) Class i, ii, iii, and iv milk.--The terms `Class I 
     milk', `Class II milk', `Class III milk', and `Class IV milk' 
     mean milk classified as Class I, II, III, or IV milk, 
     respectively, under an order.
       (3) District.--The term ``District'' means a Regional 
     Supply Management District established under subsection 
     (b)(3).
       (4) Eligible producer.--The term ``eligible producer'' 
     means an individual or entity that directly or indirectly has 
     an interest in the production of milk.
       (5) Eligible production.--The term ``eligible production'' 
     means the lesser of--
       (A) the quantity of milk produced by an eligible producer 
     during a month; or
       (B) 230,000 pounds per month.
       (6) Marketing area.--The term ``marketing area'' means a 
     marketing area subject to an order.
       (7) Order.--The term `order' means--
       (A) 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; or
       (B) a comparable State order, as determined by the 
     Secretary.
       (8) Participating state.--The term ``participating State'' 
     means a State that is participating in the program authorized 
     by this section in accordance with subsection (b)(2).
       (9) State.--The term `State' means each of the 48 
     contiguous States of the United States.
       (10) Trust fund.--The term `Trust Fund' means the National 
     Dairy Producers Trust Fund established under subsection 
     (b)(5).
       (b) Income Support for Eligible Producers for Milk Sold to 
     Processors in Participating States.--
       (1) In general.--During each of calendar years 2002 through 
     2011, the Secretary shall carry out a program under this 
     subsection to support the income of eligible producers for 
     milk sold to processors in participating States.
       (2) Participating states.--
       (A) Specified states.--The following States are 
     participating States for purposes of the program authorized 
     by this section: Alabama, Arkansas, Connecticut, Delaware, 
     Georgia, Kansas, Kentucky, Louisiana, Maine, Maryland, 
     Massachusetts, Mississippi, Missouri, New Hampshire, New 
     Jersey, New York, North Carolina, Oklahoma, Pennsylvania, 
     Rhode Island, South Carolina, Tennessee, Vermont, Virginia, 
     and West Virginia.
       (B) Other states.--The Governor of a State not described in 
     subparagraph (A) may provide for the participation of the 
     State in the program authorized by this section by providing 
     notice to the Secretary in a manner determined by the 
     Secretary.
       (C) Withdrawal.--
       (i) In general.--For a State to withdraw from participation 
     in the program authorized by this section, the Governor of 
     the State (with the concurrence of the legislature of the 
     State) shall notify the Secretary of the withdrawal of the 
     State from participation in the program in a manner 
     determined by the Secretary.
       (ii) Effective date.--The withdrawal of a State from 
     participation in the program takes effect--

       (I) in the case of written notice provided during the 180-
     day period beginning on the date of enactment of this Act, on 
     the date on which the notice is provided to the Secretary; 
     and
       (II) in the case of written notice provided after the 180-
     day period, on the date that is 1 year after the date on 
     which the notice is provided to the Secretary.

       (3) Regional supply management districts.--To carry out 
     this subsection, the Secretary shall establish 5 Regional 
     Supply Management Districts that are composed of the 
     following participating States:
       (A) Northeast district.--A Northeast District consisting of 
     the States of Connecticut, Delaware, Maine, Maryland, 
     Massachusetts, New Hampshire, New Jersey, New York, Ohio, 
     Pennsylvania, Rhode Island, and Vermont.
       (B) Southern district.--A Southern District consisting of 
     the States of Alabama, Arkansas, Florida, Georgia, Kansas, 
     Kentucky, Louisiana, Mississippi, Missouri, Nebraska, New 
     Mexico, North Carolina, Oklahoma, South Carolina, Texas, 
     Tennessee, Virginia, and West Virginia.
       (C) Upper midwest district.--An Upper Midwest District 
     consisting of the States of Illinois, Indiana, Iowa, 
     Michigan, Minnesota, North Dakota, South Dakota, and 
     Wisconsin.
       (D) Intermountain district.--An Intermountain District 
     consisting of the States of Arizona, Colorado, Idaho, 
     Montana, Nevada, Utah, and Wyoming.
       (E) Pacific district.--A Pacific District consisting of the 
     States of California, Oregon, and Washington.
       (4) Regional supply management boards.--
       (A) In general.--Each District shall be administered by a 
     Regional Supply Management Board.
       (B) Composition.--
       (i) In general.--The Board of a District shall be composed 
     of not less than 2, and not more than 3, members from each 
     participating State in the District, appointed by the 
     Secretary from nominations submitted by the Governor of the 
     State.
       (ii) Nominations.--The Governor of a participating State 
     shall nominate at least 5 residents of the State to serve on 
     the Board, of which--

       (I) at least 1 nominee shall be an eligible producer at the 
     time of nomination; and
       (II) at least 1 nominee shall be a consumer representative.

[[Page 18389]]

       (5) National dairy producers trust fund.--
       (A) Establishment and funding.--There is established in the 
     Treasury of the United States a trust fund to be known as the 
     National Dairy Producers Trust Fund, which shall consist of--
       (i) the payments received by the Secretary and deposited in 
     the Trust Fund under paragraph (6); and
       (ii) the payments made by the Secretary to the Trust Fund 
     under paragraph (7).
       (B) Expenditures.--Amounts in the Trust Fund shall be 
     available to the Secretary, to the extent provided for in 
     advance in an appropriations Act, to carry out paragraphs (8) 
     through (10).
       (6) Payments from processors to trust fund.--
       (A) In general.--During any month for which the Secretary 
     estimates that the average price paid by processors for Class 
     I milk in a District will not exceed $17.50 per 
     hundredweight, each processor in a participating State in the 
     District that purchases Class I milk from an eligible 
     producer during the month shall pay to the Secretary for 
     deposit in the Trust Fund an amount obtained by multiplying--
       (i) the payment rate determined under subparagraph (B); by
       (ii) the quantity of Class I milk purchased from the 
     eligible producer during the month.
       (B) Payment rate.--The payment rate for a payment made by a 
     processor that purchases Class I milk in a participating 
     State in a District under subparagraph (A)(i) shall equal the 
     difference between--
       (i) $17.50 per hundredweight; and
       (ii)(I) in the case of an area covered by an order, the 
     minimum price required to be paid to eligible producers for 
     Class I milk in the marketing area under an order; or
       (II) in the case of an area not covered by an order, the 
     minimum price determined by the Secretary, taking into 
     account the minimum price referred to in subclause (I) in 
     adjacent marketing areas.
       (7) Counter-cyclical payments from secretary to trust 
     fund.--
       (A) In general.--To the extent provided for in advance in 
     an appropriations Act, the Secretary shall use the funds, 
     facilities, and authorities of the Commodity Credit 
     Corporation to make a payment each month to the Trust Fund in 
     an amount determined by multiplying--
       (i) the payment rate determined under subparagraph (B); by
       (ii) the quantity of eligible production of Class II, Class 
     III, and Class IV milk sold in the various Districts during 
     the month, as determined by the Secretary.
       (B) Payment rate.--The payment rate for a payment made to 
     the Trust Fund for a month under subparagraph (A)(i) shall 
     equal 25 percent of the difference between--
       (i) $13.00 per hundredweight; and
       (ii) the weighted average of the price received by 
     producers in each District for Class III milk during the 
     month, as determined by the Secretary.
       (8) Compensation from trust fund for administrative and 
     increased food assistance costs.--The Secretary shall use 
     amounts in the Trust Fund to provide compensation to the 
     Secretary for--
       (A) administrative costs incurred by the Secretary and 
     Boards in carrying out this subsection; and
       (B) the increased cost of any milk and milk products 
     provided under any food assistance program administered by 
     the Secretary that results from carrying out this subsection.
       (9) Payments from trust fund to boards.--
       (A) In general.--The Secretary shall use any amounts in the 
     Trust Fund that remain after providing the compensation 
     required under paragraph (8) to make monthly payments to 
     Boards.
       (B) Amount.--The amount of a payment made to a Board of a 
     District for a month under subparagraph (A) shall bear the 
     same ratio to payments made to all Boards for the month as 
     the eligible production sold in the District during the month 
     bears to eligible production sold in all Districts.
       (10) Payments by boards to producers.--
       (A) In general.--With the approval of the Secretary, a 
     Board of a District shall use payments received under 
     paragraph (9) to make payments to eligible producers for 
     eligible production of milk that is commercially sold in a 
     participating State in the District.
       (B) Supply management.--In carrying out subparagraph (A), a 
     Board of a District may--
       (i) use a portion of the payments described in subparagraph 
     (A) to provide bonuses or other incentives to eligible 
     producers for eligible production to manage the supply of 
     milk produced in the District; and
       (ii) request the Secretary to review a proposed action 
     under clause (i).
       (C) Reimbursement of commodity credit corporation.--
       (i) In general.--If the Secretary determines that the 
     Commodity Credit Corporation has incurred additional costs to 
     carry out section 141 as a result of overproduction of milk 
     due to the operation of this section in a District, the 
     Secretary shall require the Board of the District to 
     reimburse the Commodity Credit Corporation for the additional 
     costs.
       (ii) Board assessment.--The Board of the District may 
     impose an assessment on the sale of milk within participating 
     States in the District to compensate the Commodity Credit 
     Corporation for the additional costs.
       (c) Counter-Cyclical Payments for Eligible Producers for 
     Milk Sold to Processors in Nonparticipating States.--
       (1) In general.--To the extent provided for in advance in 
     an appropriations Act, during each of calendar years 2002 
     through 2011, the Secretary shall use the funds, facilities, 
     and authorities of the Commodity Credit Corporation to make 
     payments to an eligible producer in a District for milk sold 
     to processors in a State that is not a participating State in 
     an amount determined by multiplying--
       (A) the payment rate determined under paragraph (2); by
       (B) the payment quantity determined under paragraph (3).
       (2) Payment rate.--The payment rate for a payment made to 
     an eligible producer in a District for a month under 
     paragraph (1)(A) shall equal 25 percent of the difference 
     between--
       (A) $13.00 per hundredweight; and
       (B) the average price received by producers in the District 
     for Class III milk during the month, as determined by the 
     Secretary.
       (3) Payment quantity.--The payment quantity for a payment 
     made to an eligible producer in a District for a month under 
     paragraph (1)(B) shall be equal to--
       (A) the quantity of eligible production of Class II, Class 
     III, and Class IV milk for the eligible producer during the 
     month, as determined by the Secretary; less
       (B) the quantity of any milk that is sold by the eligible 
     producer to a processor in a participating State during the 
     month.
       (d) Limitation.--In determining the amount of payments made 
     for eligible production under this section, no individual or 
     entity directly or indirectly may be paid on production in 
     excess of 230,000 pounds of milk per month.

                               H.R. 2646,

                        Offered By: Mr. Sanders

   [Page and line numbers refer to the Amendment in the Nature of a 
                        Substitute (COMBES.011]

       
       Amendment No. 48: Page 217, insert the following after 
     section 443 (and make such technical and conforming changes 
     as may be appropriate):
       

     SEC. 444. SENSE OF THE CONGRESS REGARDING ELIGIBILITY OF 
                   ELDERLY INDIVIDUALS TO PARTICIPATE THE 
                   COMMODITY SUPPLEMENTAL FOOD PROGRAM.

       It is the Sense of the Congress that the Secretary of 
     Agriculture should issue a rule to restore to 185 percent of 
     the poverty line the Elderly Income Guidelines for 
     participation in the Commodity Supplemental Food Program so 
     that the Guidelines are the same as the income guidelines for 
     participation by mothers, infants, and children in such 
     program.

                               H.R. 2646

                        Offered By: Mr. Sherwood

   [Page and line numbers refer to the amendment in the nature of a 
                              substitute]

       Amendment No. 49: At the end of chapter 1 of subtitle C of 
     title I (page 75, after line 17), insert the following new 
     sections:

     SEC. 147. NORTHEAST INTERSTATE DAIRY COMPACT.

       (a) In General.--Section 147 of the Agricultural Market 
     Transition Act (7 U.S.C. 7256) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``States'' and all that follows through ``Vermont'' and 
     inserting ``States of Connecticut, Delaware, Maine, Maryland, 
     Massachusetts, New Hampshire, New Jersey, New York, 
     Pennsylvania, Rhode Island, and Vermont'';
       (2) by striking paragraphs (1), (3), (4), and (7);
       (3) by redesignating paragraph (2) as paragraph (1) and, in 
     such paragraph, by striking ``Class III-A'' and inserting 
     ``Class IV'';
       (4) by inserting after paragraph (1), as so redesignated, 
     the following new paragraphs:
       ``(2) Compensation of special milk program.--Before the end 
     of each fiscal year in which a Compact price regulation is in 
     effect, the Northeast Interstate Dairy Compact Commission 
     shall compensate the Secretary for the increased cost of any 
     milk and milk products provided under the special milk 
     program established under section 3 of the Child Nutrition 
     Act of 1966 (42 U.S.C. 1772) that results from the operation 
     of the Compact price regulation during the fiscal year, as 
     determined by the Secretary (in consultation with the 
     Commission) using notice and comment procedures provided in 
     section 553 of title 5, United States Code.
       ``(3) Additional state.--Ohio is the only additional State 
     that may join the Northeast Interstate Dairy Compact.'';
       (5) by redesignating paragraph (5) as paragraph (4) and, in 
     such paragraph, by striking ``the projected rate of 
     increase'' and all that follows through ``Secretary'' and 
     inserting ``the operation of the Compact price regulation 
     during the fiscal year, as determined by the Secretary (in 
     consultation with the Commission) using notice and comment 
     procedures provided in section 553 of title 5, United States 
     Code''; and

[[Page 18390]]

       (6) by redesignating paragraph (6) as paragraph (5).
       (b) Effective Date.--The amendments made by subsection (a) 
     take effect as of September 30, 2001.

     SEC. 148. SOUTHERN DAIRY COMPACT.

       (a) In General.--Congress consents to the Southern Dairy 
     Compact entered into among the States of Alabama, Arkansas, 
     Georgia, Kansas, Kentucky, Louisiana, Mississippi, Missouri, 
     North Carolina, Oklahoma, South Carolina, Tennessee, 
     Virginia, and West Virginia, subject to the following 
     conditions:
       (1) Limitation of manufacturing price regulation.--The 
     Southern Dairy Compact Commission may not regulate Class II, 
     Class III, or Class IV milk used for manufacturing purposes 
     or any other milk, other than Class I, or fluid milk, as 
     defined by a Federal milk marketing order issued under 
     section 8c of the Agricultural Adjustment Act (7 U.S.C. 
     608c), reenacted with amendments by the Agricultural 
     Marketing Act of 1937 (referred to in this section as a 
     ``Federal milk marketing order'') unless Congress has first 
     consented to and approved such authority by a law enacted 
     after the date of enactment of this joint resolution.
       (2) Compensation of special milk program.--Before the end 
     of each fiscal year in which a Compact price regulation is in 
     effect, the Southern Dairy Compact Commission shall 
     compensate the Secretary of Agriculture for the increased 
     cost of any milk and milk products provided under the special 
     milk program established under section 3 of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1772) that results from the 
     operation of the Compact price regulation during the fiscal 
     year, as determined by the Secretary (in consultation with 
     the Commission) using notice and comment procedures provided 
     in section 553 of title 5, United States Code.
       (3) Additional states.--Florida, Nebraska, and Texas are 
     the only additional States that may join the Southern Dairy 
     Compact, individually or otherwise.
       (4) Compensation of commodity credit corporation.--Before 
     the end of each fiscal year in which a Compact price 
     regulation is in effect, the Southern Dairy Compact 
     Commission shall compensate the Commodity Credit Corporation 
     for the cost of any purchases of milk and milk products by 
     the Corporation that result from the operation of the Compact 
     price regulation during the fiscal year, as determined by the 
     Secretary (in consultation with the Commission) using notice 
     and comment procedures provided in section 553 of title 5, 
     United States Code.
       (5) Milk marketing order administrator.--At the request of 
     the Southern Dairy Compact Commission, the Administrator of 
     the applicable Federal milk marketing order shall provide 
     technical assistance to the Compact Commission and be 
     compensated for that assistance.
       (b) Compact.--The Southern Dairy Compact is substantially 
     as follows:

 ``ARTICLE I. STATEMENT OF PURPOSE, FINDINGS AND DECLARATION OF POLICY

     ``Sec. 1. Statement of purpose, findings and declaration of 
       policy

       ``The purpose of this compact is to recognize the 
     interstate character of the southern dairy industry and the 
     prerogative of the states under the United States 
     Constitution to form an interstate commission for the 
     southern region. The mission of the commission is to take 
     such steps as are necessary to assure the continued viability 
     of dairy farming in the south, and to assure consumers of an 
     adequate, local supply of pure and wholesome milk.
       ``The participating states find and declare that the dairy 
     industry is an essential agricultural activity of the south. 
     Dairy farms, and associated suppliers, marketers, processors 
     and retailers are an integral component of the region's 
     economy. Their ability to provide a stable, local supply of 
     pure, wholesome milk is a matter of great importance to the 
     health and welfare of the region.
       ``The participating states further find that dairy farms 
     are essential and they are an integral part of the region's 
     rural communities. The farms preserve land for agricultural 
     purposes and provide needed economic stimuli for rural 
     communities.
       ``In establishing their constitutional regulatory authority 
     over the region's fluid milk market by this compact, the 
     participating states declare their purpose that this compact 
     neither displace the federal order system nor encourage the 
     merging of federal orders. Specific provisions of the compact 
     itself set forth this basic principle.
       ``Designed as a flexible mechanism able to adjust to 
     changes in a regulated marketplace, the compact also contains 
     a contingency provision should the federal order system be 
     discontinued. In that event, the interstate commission is 
     authorized to regulate the marketplace in replacement of the 
     order system. This contingent authority does not anticipate 
     such a change, however, and should not be so construed. It is 
     only provided should developments in the market other than 
     establishment of this compact result in discontinuance of the 
     order system.
       ``By entering into this compact, the participating states 
     affirm that their ability to regulate the price which 
     southern dairy farmers receive for their product is essential 
     to the public interest. Assurance of a fair and equitable 
     price for dairy farmers ensures their ability to provide milk 
     to the market and the vitality of the southern dairy 
     industry, with all the associated benefits.
       ``Recent, dramatic price fluctuations, with a pronounced 
     downward trend, threaten the viability and stability of the 
     southern dairy region. Historically, individual state 
     regulatory action had been an effective emergency remedy 
     available to farmers confronting a distressed market. The 
     federal order system, implemented by the Agricultural 
     Marketing Agreement Act of 1937, establishes only minimum 
     prices paid to producers for raw milk, without preempting the 
     power of states to regulate milk prices above the minimum 
     levels so established.
       ``In today's regional dairy marketplace, cooperative, 
     rather than individual state action is needed to more 
     effectively address the market disarray. Under our 
     constitutional system, properly authorized states acting 
     cooperatively may exercise more power to regulate interstate 
     commerce than they may assert individually without such 
     authority. For this reason, the participating states invoke 
     their authority to act in common agreement, with the consent 
     of Congress, under the compact clause of the Constitution.

          ``ARTICLE II. DEFINITIONS AND RULES OF CONSTRUCTION

     ``Sec. 2. Definitions

       ``For the purposes of this compact, and of any supplemental 
     or concurring legislation enacted pursuant thereto, except as 
     may be otherwise required by the context:
       ``(1) `Class I milk' means milk disposed of in fluid form 
     or as a fluid milk product, subject to further definition in 
     accordance with the principles expressed in subdivision (b) 
     of section three.
       ``(2) `Commission' means the Southern Dairy Compact 
     Commission established by this compact.
       ``(3) `Commission marketing order' means regulations 
     adopted by the commission pursuant to sections nine and ten 
     of this compact in place of a terminated federal marketing 
     order or state dairy regulation. Such order may apply 
     throughout the region or in any part or parts thereof as 
     defined in the regulations of the commission. Such order may 
     establish minimum prices for any or all classes of milk.
       ``(4) `Compact' means this interstate compact.
       ``(5) `Compact over-order price' means a minimum price 
     required to be paid to producers for Class I milk established 
     by the commission in regulations adopted pursuant to sections 
     nine and ten of this compact, which is above the price 
     established in federal marketing orders or by state farm 
     price regulations in the regulated area. Such price may apply 
     throughout the region or in any part or parts thereof as 
     defined in the regulations of the commission.
       ``(6) `Milk' means the lacteral secretion of cows and 
     includes all skim, butterfat, or other constituents obtained 
     from separation or any other process. The term is used in its 
     broadest sense and may be further defined by the commission 
     for regulatory purposes.
       ``(7) `Partially regulated plant' means a milk plant not 
     located in a regulated area but having Class I distribution 
     within such area. Commission regulations may exempt plants 
     having such distribution or receipts in amounts less than the 
     limits defined therein.
       ``(8) `Participating state' means a state which has become 
     a party to this compact by the enactment of concurring 
     legislation.
       ``(9) `Pool plant' means any milk plant located in a 
     regulated area.
       ``(10) `Region' means the territorial limits of the states 
     which are parties to this compact.
       ``(11) `Regulated area' means any area within the region 
     governed by and defined in regulations establishing a compact 
     over-order price or commission marketing order.
       ``(12) `State dairy regulation' means any state regulation 
     of dairy prices, and associated assessments, whether by 
     statute, marketing order or otherwise.

     ``Sec. 3. Rules of construction

       ``(a) This compact shall not be construed to displace 
     existing federal milk marketing orders or state dairy 
     regulation in the region but to supplement them. In the event 
     some or all federal orders in the region are discontinued, 
     the compact shall be construed to provide the commission the 
     option to replace them with one or more commission marketing 
     orders pursuant to this compact.
       ``(b) The compact shall be construed liberally in order to 
     achieve the purposes and intent enunciated in section one. It 
     is the intent of this compact to establish a basic structure 
     by which the commission may achieve those purposes through 
     the application, adaptation and development of the regulatory 
     techniques historically associated with milk marketing and to 
     afford the commission broad flexibility to devise regulatory 
     mechanisms to achieve the purposes of this compact. In 
     accordance with this intent, the technical terms which are 
     associated with market order regulation and which have 
     acquired commonly understood general meanings are not defined 
     herein but the commission may further define the terms used 
     in this compact and develop additional concepts and define 
     additional terms as it may find appropriate to achieve its 
     purposes.

[[Page 18391]]



                 ``ARTICLE III. COMMISSION ESTABLISHED

     ``Sec. 4. Commission established

       ``There is hereby created a commission to administer the 
     compact, composed of delegations from each state in the 
     region. The commission shall be known as the Southern Dairy 
     Compact Commission. A delegation shall include not less than 
     three nor more than five persons. Each delegation shall 
     include at least one dairy farmer who is engaged in the 
     production of milk at the time of appointment or 
     reappointment, and one consumer representative. Delegation 
     members shall be residents and voters of, and subject to such 
     confirmation process as is provided for in the appointing 
     state. Delegation members shall serve no more than three 
     consecutive terms with no single term of more than four 
     years, and be subject to removal for cause. In all other 
     respects, delegation members shall serve in accordance with 
     the laws of the state represented. The compensation, if any, 
     of the members of a state delegation shall be determined and 
     paid by each state, but their expenses shall be paid by the 
     commission.

     ``Sec. 5. Voting requirements

       ``All actions taken by the commission, except for the 
     establishment or termination of an over-order price or 
     commission marketing order, and the adoption, amendment or 
     rescission of the commission's by-laws, shall be by majority 
     vote of the delegations present. Each state delegation shall 
     be entitled to one vote in the conduct of the commission's 
     affairs. Establishment or termination of an over-order price 
     or commission marketing order shall require at least a two-
     thirds vote of the delegations present. The establishment of 
     a regulated area which covers all or part of a participating 
     state shall require also the affirmative vote of that state's 
     delegation. A majority of the delegations from the 
     participating states shall constitute a quorum for the 
     conduct of the commission's business.

     ``Sec. 6. Administration and management

       ``(a) The commission shall elect annually from among the 
     members of the participating state delegations a chairperson, 
     a vice-chairperson, and a treasurer. The commission shall 
     appoint an executive director and fix his or her duties and 
     compensation. The executive director shall serve at the 
     pleasure of the commission, and together with the treasurer, 
     shall be bonded in an amount determined by the commission. 
     The commission may establish through its by-laws an executive 
     committee composed of one member elected by each delegation.
       ``(b) The commission shall adopt by-laws for the conduct of 
     its business by a two-thirds vote, and shall have the power 
     by the same vote to amend and rescind these by-laws. The 
     commission shall publish its by-laws in convenient form with 
     the appropriate agency or officer in each of the 
     participating states. The by-laws shall provide for 
     appropriate notice to the delegations of all commission 
     meetings and hearings and of the business to be transacted at 
     such meetings or hearings. Notice also shall be given to 
     other agencies or officers of participating states as 
     provided by the laws of those states.
       ``(c) The commission shall file an annual report with the 
     Secretary of Agriculture of the United States, and with each 
     of the participating states by submitting copies to the 
     governor, both houses of the legislature, and the head of the 
     state department having responsibilities for agriculture.
       ``(d) In addition to the powers and duties elsewhere 
     prescribed in this compact, the commission shall have the 
     power:
       ``(1) To sue and be sued in any state or federal court;
       ``(2) To have a seal and alter the same at pleasure;
       ``(3) To acquire, hold, and dispose of real and personal 
     property by gift, purchase, lease, license, or other similar 
     manner, for its corporate purposes;
       ``(4) To borrow money and issue notes, to provide for the 
     rights of the holders thereof and to pledge the revenue of 
     the commission as security therefor, subject to the 
     provisions of section eighteen of this compact;
       ``(5) To appoint such officers, agents, and employees as it 
     may deem necessary, prescribe their powers, duties and 
     qualifications; and
       ``(6) To create and abolish such offices, employments and 
     positions as it deems necessary for the purposes of the 
     compact and provide for the removal, term, tenure, 
     compensation, fringe benefits, pension, and retirement rights 
     of its officers and employees. The commission may also retain 
     personal services on a contract basis.

     ``Sec. 7. Rulemaking power

       ``In addition to the power to promulgate a compact over-
     order price or commission marketing orders as provided by 
     this compact, the commission is further empowered to make and 
     enforce such additional rules and regulations as it deems 
     necessary to implement any provisions of this compact, or to 
     effectuate in any other respect the purposes of this compact.

                 ``ARTICLE IV. POWERS OF THE COMMISSION

     ``Sec. 8. Powers to promote regulatory uniformity, 
       simplicity, and interstate cooperation

       ``The commission is hereby empowered to:
       ``(1) Investigate or provide for investigations or research 
     projects designed to review the existing laws and regulations 
     of the participating states, to consider their administration 
     and costs, to measure their impact on the production and 
     marketing of milk and their effects on the shipment of milk 
     and milk products within the region.
       ``(2) Study and recommend to the participating states joint 
     or cooperative programs for the administration of the dairy 
     marketing laws and regulations and to prepare estimates of 
     cost savings and benefits of such programs.
       ``(3) Encourage the harmonious relationships between the 
     various elements in the industry for the solution of their 
     material problems. Conduct symposia or conferences designed 
     to improve industry relations, or a better understanding of 
     problems.
       ``(4) Prepare and release periodic reports on activities 
     and results of the commission's efforts to the participating 
     states.
       ``(5) Review the existing marketing system for milk and 
     milk products and recommend changes in the existing structure 
     for assembly and distribution of milk which may assist, 
     improve or promote more efficient assembly and distribution 
     of milk.
       ``(6) Investigate costs and charges for producing, hauling, 
     handling, processing, distributing, selling and for all other 
     services performed with respect to milk.
       ``(7) Examine current economic forces affecting producers, 
     probable trends in production and consumption, the level of 
     dairy farm prices in relation to costs, the financial 
     conditions of dairy farmers, and the need for an emergency 
     order to relieve critical conditions on dairy farms.

     ``Sec. 9. Equitable farm prices

       ``(a) The powers granted in this section and section ten 
     shall apply only to the establishment of a compact over-order 
     price, so long as federal milk marketing orders remain in 
     effect in the region. In the event that any or all such 
     orders are terminated, this article shall authorize the 
     commission to establish one or more commission marketing 
     orders, as herein provided, in the region or parts thereof as 
     defined in the order.
       ``(b) A compact over-order price established pursuant to 
     this section shall apply only to Class I milk. Such compact 
     over-order price shall not exceed one dollar and fifty cents 
     per gallon at Atlanta, Ga., however, this compact over-order 
     price shall be adjusted upward or downward at other locations 
     in the region to reflect differences in minimum federal order 
     prices. Beginning in nineteen hundred ninety, and using that 
     year as a base, the foregoing one dollar fifty cents per 
     gallon maximum shall be adjusted annually by the rate of 
     change in the Consumer Price Index as reported by the Bureau 
     of Labor Statistics of the United States Department of Labor. 
     For purposes of the pooling and equalization of an over-order 
     price, the value of milk used in other use classifications 
     shall be calculated at the appropriate class price 
     established pursuant to the applicable federal order or state 
     dairy regulation and the value of unregulated milk shall be 
     calculated in relation to the nearest prevailing class price 
     in accordance with and subject to such adjustments as the 
     commission may prescribe in regulations.
       ``(c) A commission marketing order shall apply to all 
     classes and uses of milk.
       ``(d) The commission is hereby empowered to establish a 
     compact over-order price for milk to be paid by pool plants 
     and partially regulated plants. The commission is also 
     empowered to establish a compact over-order price to be paid 
     by all other handlers receiving milk from producers located 
     in a regulated area. This price shall be established either 
     as a compact over-order price or by one or more commission 
     marketing orders. Whenever such a price has been established 
     by either type of regulation, the legal obligation to pay 
     such price shall be determined solely by the terms and 
     purpose of the regulation without regard to the situs of the 
     transfer of title, possession or any other factors not 
     related to the purposes of the regulation and this compact. 
     Producer-handlers as defined in an applicable federal market 
     order shall not be subject to a compact over-order price. The 
     commission shall provide for similar treatment of producer-
     handlers under commission marketing orders.
       ``(e) In determining the price, the commission shall 
     consider the balance between production and consumption of 
     milk and milk products in the regulated area, the costs of 
     production including, but not limited to the price of feed, 
     the cost of labor including the reasonable value of the 
     producer's own labor and management, machinery expense, and 
     interest expense, the prevailing price for milk outside the 
     regulated area, the purchasing power of the public and the 
     price necessary to yield a reasonable return to the producer 
     and distributor.
       ``(f) When establishing a compact over-order price, the 
     commission shall take such other action as is necessary and 
     feasible to help ensure that the over-order price does not 
     cause or compensate producers so as to generate local 
     production of milk in excess of those quantities necessary to 
     assure consumers of an adequate supply for fluid purposes.

[[Page 18392]]

       ``(g) The commission shall whenever possible enter into 
     agreements with state or federal agencies for exchange of 
     information or services for the purpose of reducing 
     regulatory burden and cost of administering the compact. The 
     commission may reimburse other agencies for the reasonable 
     cost of providing these services.

     ``Sec. 10. Optional provisions for pricing order

       ``Regulations establishing a compact over-order price or a 
     commission marketing order may contain, but shall not be 
     limited to any of the following:
       ``(1) Provisions classifying milk in accordance with the 
     form in which or purpose for which it is used, or creating a 
     flat pricing program.
       ``(2) With respect to a commission marketing order only, 
     provisions establishing or providing a method for 
     establishing separate minimum prices for each use 
     classification prescribed by the commission, or a single 
     minimum price for milk purchased from producers or 
     associations of producers.
       ``(3) With respect to an over-order minimum price, 
     provisions establishing or providing a method for 
     establishing such minimum price for Class I milk.
       ``(4) Provisions for establishing either an over-order 
     price or a commission marketing order may make use of any 
     reasonable method for establishing such price or prices 
     including flat pricing and formula pricing. Provision may 
     also be made for location adjustments, zone differentials and 
     for competitive credits with respect to regulated handlers 
     who market outside the regulated area.
       ``(5) Provisions for the payment to all producers and 
     associations of producers delivering milk to all handlers of 
     uniform prices for all milk so delivered, irrespective of the 
     uses made of such milk by the individual handler to whom it 
     is delivered, or for the payment of producers delivering milk 
     to the same handler of uniform prices for all milk delivered 
     by them.
       ``(A) With respect to regulations establishing a compact 
     over-order price, the commission may establish one 
     equalization pool within the regulated area for the sole 
     purpose of equalizing returns to producers throughout the 
     regulated area.
       ``(B) With respect to any commission marketing order, as 
     defined in section two, subdivision three, which replaces one 
     or more terminated federal orders or state dairy regulations, 
     the marketing area of now separate state or federal orders 
     shall not be merged without the affirmative consent of each 
     state, voting through its delegation, which is partly or 
     wholly included within any such new marketing area.
       ``(6) Provisions requiring persons who bring Class I milk 
     into the regulated area to make compensatory payments with 
     respect to all such milk to the extent necessary to equalize 
     the cost of milk purchased by handlers subject to a compact 
     over-order price or commission marketing order. No such 
     provisions shall discriminate against milk producers outside 
     the regulated area. The provisions for compensatory payments 
     may require payment of the difference between the Class I 
     price required to be paid for such milk in the state of 
     production by a federal milk marketing order or state dairy 
     regulation and the Class I price established by the compact 
     over-order price or commission marketing order.
       ``(7) Provisions specially governing the pricing and 
     pooling of milk handled by partially regulated plants.
       ``(8) Provisions requiring that the account of any person 
     regulated under the compact over-order price shall be 
     adjusted for any payments made to or received by such persons 
     with respect to a producer settlement fund of any federal or 
     state milk marketing order or other state dairy regulation 
     within the regulated area.
       ``(9) Provision requiring the payment by handlers of an 
     assessment to cover the costs of the administration and 
     enforcement of such order pursuant to Article VII, Section 
     18(a).
       ``(10) Provisions for reimbursement to participants of the 
     Women, Infants and Children Special Supplemental Food Program 
     of the United States Child Nutrition Act of 1966.
       ``(11) Other provisions and requirements as the commission 
     may find are necessary or appropriate to effectuate the 
     purposes of this compact and to provide for the payment of 
     fair and equitable minimum prices to producers.

                   ``ARTICLE V. RULEMAKING PROCEDURE

     ``Sec. 11. Rulemaking procedure

       ``Before promulgation of any regulations establishing a 
     compact over-order price or commission marketing order, 
     including any provision with respect to milk supply under 
     subsection 9(f), or amendment thereof, as provided in Article 
     IV, the commission shall conduct an informal rulemaking 
     proceeding to provide interested persons with an opportunity 
     to present data and views. Such rulemaking proceeding shall 
     be governed by section four of the Federal Administrative 
     Procedure Act, as amended (5 U.S.C. Sec. 553). In addition, 
     the commission shall, to the extent practicable, publish 
     notice of rulemaking proceedings in the official register of 
     each participating state. Before the initial adoption of 
     regulations establishing a compact over-order price or a 
     commission marketing order and thereafter before any 
     amendment with regard to prices or assessments, the 
     commission shall hold a public hearing. The commission may 
     commence a rulemaking proceeding on its own initiative or may 
     in its sole discretion act upon the petition of any person 
     including individual milk producers, any organization of milk 
     producers or handlers, general farm organizations, consumer 
     or public interest groups, and local, state or federal 
     officials.

     ``Sec. 12. Findings and referendum

       ``(a) In addition to the concise general statement of basis 
     and purpose required by section 4(b) of the Federal 
     Administrative Procedure Act, as amended (5 U.S.C. 
     Sec. 553(c)), the commission shall make findings of fact with 
     respect to:
       ``(1) Whether the public interest will be served by the 
     establishment of minimum milk prices to dairy farmers under 
     Article IV.
       ``(2) What level of prices will assure that producers 
     receive a price sufficient to cover their costs of production 
     and will elicit an adequate supply of milk for the 
     inhabitants of the regulated area and for manufacturing 
     purposes.
       ``(3) Whether the major provisions of the order, other than 
     those fixing minimum milk prices, are in the public interest 
     and are reasonably designed to achieve the purposes of the 
     order.
       ``(4) Whether the terms of the proposed regional order or 
     amendment are approved by producers as provided in section 
     thirteen.

     ``Sec. 13. Producer referendum

       ``(a) For the purpose of ascertaining whether the issuance 
     or amendment of regulations establishing a compact over-order 
     price or a commission marketing order, including any 
     provision with respect to milk supply under subsection 9(f), 
     is approved by producers, the commission shall conduct a 
     referendum among producers. The referendum shall be held in a 
     timely manner, as determined by regulation of the commission. 
     The terms and conditions of the proposed order or amendment 
     shall be described by the commission in the ballot used in 
     the conduct of the referendum, but the nature, content, or 
     extent of such description shall not be a basis for attacking 
     the legality of the order or any action relating thereto.
       ``(b) An order or amendment shall be deemed approved by 
     producers if the commission determines that it is approved by 
     at least two-thirds of the voting producers who, during a 
     representative period determined by the commission, have been 
     engaged in the production of milk the price of which would be 
     regulated under the proposed order or amendment.
       ``(c) For purposes of any referendum, the commission shall 
     consider the approval or disapproval by any cooperative 
     association of producers, qualified under the provisions of 
     the Act of Congress of February 18, 1922, as amended, known 
     as the Capper-Volstead Act, bona fide engaged in marketing 
     milk, or in rendering services for or advancing the interests 
     of producers of such commodity, as the approval or 
     disapproval of the producers who are members or stockholders 
     in, or under contract with, such cooperative association of 
     producers, except as provided in subdivision (1) hereof and 
     subject to the provisions of subdivision (2) through (5) 
     hereof.
       ``(1) No cooperative which has been formed to act as a 
     common marketing agency for both cooperatives and individual 
     producers shall be qualified to block vote for either.
       ``(2) Any cooperative which is qualified to block vote 
     shall, before submitting its approval or disapproval in any 
     referendum, give prior written notice to each of its members 
     as to whether and how it intends to cast its vote. The notice 
     shall be given in a timely manner as established, and in the 
     form prescribed, by the commission.
       ``(3) Any producer may obtain a ballot from the commission 
     in order to register approval or disapproval of the proposed 
     order.
       ``(4) A producer who is a member of a cooperative which has 
     provided notice of its intent to approve or not to approve a 
     proposed order, and who obtains a ballot and with such ballot 
     expresses his approval or disapproval of the proposed order, 
     shall notify the commission as to the name of the cooperative 
     of which he or she is a member, and the commission shall 
     remove such producer's name from the list certified by such 
     cooperative with its corporate vote.
       ``(5) In order to insure that all milk producers are 
     informed regarding the proposed order, the commission shall 
     notify all milk producers that an order is being considered 
     and that each producer may register his approval or 
     disapproval with the commission either directly or through 
     his or her cooperative.

     ``Sec. 14. Termination of over-order price or marketing order

       ``(a) The commission shall terminate any regulations 
     establishing an over-order price or commission marketing 
     order issued under this article whenever it finds that such 
     order or price obstructs or does not tend to effectuate the 
     declared policy of this compact.
       ``(b) The commission shall terminate any regulations 
     establishing an over-order price or a commission marketing 
     order issued under this article whenever it finds that

[[Page 18393]]

     such termination is favored by a majority of the producers 
     who, during a representative period determined by the 
     commission, have been engaged in the production of milk the 
     price of which is regulated by such order; but such 
     termination shall be effective only if announced on or before 
     such date as may be specified in such marketing agreement or 
     order.
       ``(c) The termination or suspension of any order or 
     provision thereof, shall not be considered an order within 
     the meaning of this article and shall require no hearing, but 
     shall comply with the requirements for informal rulemaking 
     prescribed by section four of the Federal Administrative 
     Procedure Act, as amended (5 U.S.C. Sec. 553).

                       ``ARTICLE VI. ENFORCEMENT

     ``Sec. 15. Records; reports; access to premises

       ``(a) The commission may by rule and regulation prescribe 
     record keeping and reporting requirements for all regulated 
     persons. For purposes of the administration and enforcement 
     of this compact, the commission is authorized to examine the 
     books and records of any regulated person relating to his or 
     her milk business and for that purpose, the commission's 
     properly designated officers, employees, or agents shall have 
     full access during normal business hours to the premises and 
     records of all regulated persons.
       ``(b) Information furnished to or acquired by the 
     commission officers, employees, or its agents pursuant to 
     this section shall be confidential and not subject to 
     disclosure except to the extent that the commission deems 
     disclosure to be necessary in any administrative or judicial 
     proceeding involving the administration or enforcement of 
     this compact, an over-order price, a compact marketing order, 
     or other regulations of the commission. The commission may 
     promulgate regulations further defining the confidentiality 
     of information pursuant to this section. Nothing in this 
     section shall be deemed to prohibit (i) the issuance of 
     general statements based upon the reports of a number of 
     handlers, which do not identify the information furnished by 
     any person, or (ii) the publication by direction of the 
     commission of the name of any person violating any regulation 
     of the commission, together with a statement of the 
     particular provisions violated by such person.
       ``(c) No officer, employee, or agent of the commission 
     shall intentionally disclose information, by inference or 
     otherwise, which is made confidential pursuant to this 
     section. Any person violating the provisions of this section 
     shall, upon conviction, be subject to a fine of not more than 
     one thousand dollars or to imprisonment for not more than one 
     year, or to both, and shall be removed from office. The 
     commission shall refer any allegation of a violation of this 
     section to the appropriate state enforcement authority or 
     United States Attorney.

     ``Sec. 16. Subpoena; hearings and judicial review

       ``(a) The commission is hereby authorized and empowered by 
     its members and its properly designated officers to 
     administer oaths and issue subpoenas throughout all signatory 
     states to compel the attendance of witnesses and the giving 
     of testimony and the production of other evidence.
       ``(b) Any handler subject to an order may file a written 
     petition with the commission stating that any such order or 
     any provision of any such order or any obligation imposed in 
     connection therewith is not in accordance with law and 
     praying for a modification thereof or to be exempted 
     therefrom. He shall thereupon be given an opportunity for a 
     hearing upon such petition, in accordance with regulations 
     made by the commission. After such hearing, the commission 
     shall make a ruling upon the prayer of such petition which 
     shall be final, if in accordance with law.
       ``(c) The district courts of the United States in any 
     district in which such handler is an inhabitant, or has his 
     principal place of business, are hereby vested with 
     jurisdiction to review such ruling, provided a complaint for 
     that purpose is filed within thirty days from the date of the 
     entry of such ruling. Service of process in such proceedings 
     may be had upon the commission by delivering to it a copy of 
     the complaint. If the court determines that such ruling is 
     not in accordance with law, it shall remand such proceedings 
     to the commission with directions either (1) to make such 
     ruling as the court shall determine to be in accordance with 
     law, or (2) to take such further proceedings as, in its 
     opinion, the law requires. The pendency of proceedings 
     instituted pursuant to this subdivision shall not impede, 
     hinder, or delay the commission from obtaining relief 
     pursuant to section seventeen. Any proceedings brought 
     pursuant to section seventeen, except where brought by way of 
     counterclaim in proceedings instituted pursuant to this 
     section, shall abate whenever a final decree has been 
     rendered in proceedings between the same parties, and 
     covering the same subject matter, instituted pursuant to this 
     section.

     ``Sec. 17. Enforcement with respect to handlers

       ``(a) Any violation by a handler of the provisions of 
     regulations establishing an over-order price or a commission 
     marketing order, or other regulations adopted pursuant to 
     this compact shall:
       ``(1) Constitute a violation of the laws of each of the 
     signatory states. Such violation shall render the violator 
     subject to a civil penalty in an amount as may be prescribed 
     by the laws of each of the participating states, recoverable 
     in any state or federal court of competent jurisdiction. Each 
     day such violation continues shall constitute a separate 
     violation.
       ``(2) Constitute grounds for the revocation of license or 
     permit to engage in the milk business under the applicable 
     laws of the participating states.
       ``(b) With respect to handlers, the commission shall 
     enforce the provisions of this compact, regulations 
     establishing an over-order price, a commission marketing 
     order or other regulations adopted hereunder by:
       ``(1) Commencing an action for legal or equitable relief 
     brought in the name of the commission of any state or federal 
     court of competent jurisdiction; or
       ``(2) Referral to the state agency for enforcement by 
     judicial or administrative remedy with the agreement of the 
     appropriate state agency of a participating state.
       ``(c) With respect to handlers, the commission may bring an 
     action for injunction to enforce the provisions of this 
     compact or the order or regulations adopted thereunder 
     without being compelled to allege or prove that an adequate 
     remedy of law does not exist.

                         ``ARTICLE VII. FINANCE

     ``Sec. 18. Finance of start-up and regular costs

       ``(a) To provide for its start-up costs, the commission may 
     borrow money pursuant to its general power under section six, 
     subdivision (d), paragraph four. In order to finance the 
     costs of administration and enforcement of this compact, 
     including payback of start-up costs, the commission is hereby 
     empowered to collect an assessment from each handler who 
     purchases milk from producers within the region. If imposed, 
     this assessment shall be collected on a monthly basis for up 
     to one year from the date the commission convenes, in an 
     amount not to exceed $.015 per hundredweight of milk 
     purchased from producers during the period of the assessment. 
     The initial assessment may apply to the projected purchases 
     of handlers for the two-month period following the date the 
     commission convenes. In addition, if regulations establishing 
     an over-order price or a compact marketing order are adopted, 
     they may include an assessment for the specific purpose of 
     their administration. These regulations shall provide for 
     establishment of a reserve for the commission's ongoing 
     operating expenses.
       ``(b) The commission shall not pledge the credit of any 
     participating state or of the United States. Notes issued by 
     the commission and all other financial obligations incurred 
     by it, shall be its sole responsibility and no participating 
     state or the United States shall be liable therefor.

     ``Sec. 19. Audit and accounts

       ``(a) The commission shall keep accurate accounts of all 
     receipts and disbursements, which shall be subject to the 
     audit and accounting procedures established under its rules. 
     In addition, all receipts and disbursements of funds handled 
     by the commission shall be audited yearly by a qualified 
     public accountant and the report of the audit shall be 
     included in and become part of the annual report of the 
     commission.
       ``(b) The accounts of the commission shall be open at any 
     reasonable time for inspection by duly constituted officers 
     of the participating states and by any persons authorized by 
     the commission.
       ``(c) Nothing contained in this article shall be construed 
     to prevent commission compliance with laws relating to audit 
     or inspection of accounts by or on behalf of any 
     participating state or of the United States.

  ``ARTICLE VIII. ENTRY INTO FORCE; ADDITIONAL MEMBERS AND WITHDRAWAL

     ``Sec. 20. Entry into force; additional members

       ``The compact shall enter into force effective when enacted 
     into law by any three states of the group of states composed 
     of Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, 
     Maryland, Mississippi, North Carolina, Oklahoma, South 
     Carolina, Tennessee, Texas, Virginia and West Virginia and 
     when the consent of Congress has been obtained.

     ``Sec. 21. Withdrawal from compact

       ``Any participating state may withdraw from this compact by 
     enacting a statute repealing the same, but no such withdrawal 
     shall take effect until one year after notice in writing of 
     the withdrawal is given to the commission and the governors 
     of all other participating states. No withdrawal shall affect 
     any liability already incurred by or chargeable to a 
     participating state prior to the time of such withdrawal.

     ``Sec. 22. Severability

       ``If any part or provision of this compact is adjudged 
     invalid by any court, such judgment shall be confined in its 
     operation to the part or provision directly involved in the 
     controversy in which such judgment shall have been rendered 
     and shall not affect or impair the validity of the remainder 
     of this compact. In the event Congress consents to this 
     compact subject to conditions, said conditions shall not 
     impair the validity of this

[[Page 18394]]

     compact when said conditions are accepted by three or more 
     compacting states. A compacting state may accept the 
     conditions of Congress by implementation of this compact.''.

     SEC. 149. PACIFIC NORTHWEST DAIRY COMPACT.

       Congress consents to a Pacific Northwest Dairy Compact 
     proposed for the States of California, Oregon, and 
     Washington, subject to the following conditions:
       (1) Text.--The text of the Pacific Northwest Dairy Compact 
     shall be identical to the text of the Southern Dairy Compact, 
     except as follows:
       (A) References to ``south'', ``southern'', and ``Southern'' 
     shall be changed to ``Pacific Northwest''.
       (B) In section 9(b), the reference to ``Atlanta, Georgia'' 
     shall be changed to ``Seattle, Washington''.
       (C) In section 20, the reference to ``any three'' and all 
     that follows shall be changed to ``California, Oregon, and 
     Washington.''.
       (2) Limitation of manufacturing price regulation.--The 
     Dairy Compact Commission established to administer the 
     Pacific Northwest Dairy Compact (referred to in this section 
     as the ``Commission'') may not regulate Class II, Class III, 
     or Class IV milk used for manufacturing purposes or any other 
     milk, other than Class I, or fluid milk, as defined by a 
     Federal milk marketing order issued under section 8c of the 
     Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with 
     amendments by the Agricultural Marketing Act of 1937 
     (referred to in this section as a ``Federal milk marketing 
     order'').
       (3) Compensation of special milk program.--Before the end 
     of each fiscal year in which a Compact price regulation is in 
     effect, the Pacific Northwest Dairy Compact Commission shall 
     compensate the Secretary of Agriculture for the increased 
     cost of any milk and milk products provided under the special 
     milk program established under section 3 of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1772) that results from the 
     operation of the Compact price regulation during the fiscal 
     year, as determined by the Secretary (in consultation with 
     the Commission) using notice and comment procedures provided 
     in section 553 of title 5, United States Code.
       (4) Effective date.--Congressional consent under this 
     section takes effect on the date (not later than 3 years 
     after the date of enactment of this Act) on which the Pacific 
     Northwest Dairy Compact is entered into by the second of the 
     3 States specified in the matter preceding paragraph (1).
       (5) Compensation of commodity credit corporation.--Before 
     the end of each fiscal year in which a price regulation is in 
     effect under the Pacific Northwest Dairy Compact, the 
     Commission shall compensate the Commodity Credit Corporation 
     for the cost of any purchases of milk and milk products by 
     the Corporation that result from the operation of the Compact 
     price regulation during the fiscal year, as determined by the 
     Secretary (in consultation with the Commission) using notice 
     and comment procedures provided in section 553 of title 5, 
     United States Code.
       (6) Milk marketing order administrator.--At the request of 
     the Commission, the Administrator of the applicable Federal 
     milk marketing order shall provide technical assistance to 
     the Commission and be compensated for that assistance.

     SEC. 150. INTERMOUNTAIN DAIRY COMPACT.

       Congress consents to an Intermountain Dairy Compact 
     proposed for the States of Colorado, Nevada, and Utah, 
     subject to the following conditions:
       (1) Text.--The text of the Intermountain Dairy Compact 
     shall be identical to the text of the Southern Dairy Compact, 
     except as follows:
       (A) In section 1, the references to ``southern'' and 
     ``south'' shall be changed to ``Intermountain'' and 
     ``Intermountain region'', respectively.
       (B) References to ``Southern'' shall be changed to 
     ``Intermountain ''.
       (C) In section 9(b), the reference to ``Atlanta, Georgia'' 
     shall be changed to ``Salt Lake City, Utah''.
       (D) In section 20, the reference to ``any three'' and all 
     that follows shall be changed to ``Colorado, Nevada, and 
     Utah.''.
       (2) Limitation of manufacturing price regulation.--The 
     Dairy Compact Commission established to administer the 
     Intermountain Dairy Compact (referred to in this section as 
     the ``Commission'') may not regulate Class II, Class III, or 
     Class IV milk used for manufacturing purposes or any other 
     milk, other than Class I, or fluid milk, as defined by a 
     Federal milk marketing order issued under section 8c of the 
     Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with 
     amendments by the Agricultural Marketing Act of 1937 
     (referred to in this section as a ``Federal milk marketing 
     order'').
       (3) Compensation of special milk program.--Before the end 
     of each fiscal year in which a Compact price regulation is in 
     effect, the Intermountain Dairy Compact Commission shall 
     compensate the Secretary of Agriculture for the increased 
     cost of any milk and milk products provided under the special 
     milk program established under section 3 of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1772) that results from the 
     operation of the Compact price regulation during the fiscal 
     year, as determined by the Secretary (in consultation with 
     the Commission) using notice and comment procedures provided 
     in section 553 of title 5, United States Code.
       (4) Effective date.--Congressional consent under this 
     section takes effect on the date (not later than 3 years 
     after the date of enactment of this Act) on which the 
     Intermountain Dairy Compact is entered into by the second of 
     the 3 States specified in the matter preceding paragraph (1).
       (5) Compensation of commodity credit corporation.--Before 
     the end of each fiscal year in which a price regulation is in 
     effect under the Intermountain Dairy Compact, the Commission 
     shall compensate the Commodity Credit Corporation for the 
     cost of any purchases of milk and milk products by the 
     Corporation that result from the operation of the Compact 
     price regulation during the fiscal year, as determined by the 
     Secretary (in consultation with the Commission) using notice 
     and comment procedures provided in section 553 of title 5, 
     United States Code.
       (6) Milk marketing order administrator.--At the request of 
     the Commission, the Administrator of the applicable Federal 
     milk marketing order shall provide technical assistance to 
     the Commission and be compensated for that assistance.

                               H.R. 2883

                        Offered By: Mr. Simmons

       Amendment No. 50: At the end of title IV, page 21, after 
     line 12, insert the following new section:

     SEC. 404. FULL REIMBURSEMENT FOR PROFESSIONAL LIABILITY 
                   INSURANCE OF COUNTERTERRORISM EMPLOYEES.

       Section 406(a)(2) of the Intelligence Authorization Act for 
     Fiscal Year 2001 (Public Law 106-567; 114 Stat. 2849; 5 
     U.S.C. prec. 5941 note) is amended by striking ``one-half'' 
     and inserting ``100 percent''.

                               H.R. 2646

                   Offered By: Mr. Smith of Michigan

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 51: In section 181, strike subsection (e) 
     (page 128, line 23, through page 129, line 9), and insert the 
     following new subsection:
       (e) Adjustment Authority Related to Uruguay Round 
     Compliance.--If the Secretary determines that expenditures 
     under subtitles A, B, and C that are subject to the total 
     allowable domestic support levels under the Uruguay Round 
     Agreements (as defined in section 2(7) of the Uruguay Round 
     Agreements Act (19 U.S.C. 3501(7))), as in effect on the date 
     of the enactment of this Act, will exceed such allowable 
     levels for any applicable reporting period, the Secretary may 
     make adjustments in the amount of such expenditures during 
     that period to ensure that such expenditures do not exceed, 
     but in no case are less than, such allowable levels. To the 
     maximum extent practicable, the Secretary shall achieve the 
     required adjustments by reducing the amount of marketing loan 
     gains and loan deficiency payments obtained by persons whose 
     marketing loan gains, loan deficiency payments and any 
     certificates would otherwise exceed a total of $150,000 for a 
     crop year.

                               H.R. 2646

                   Offered By: Mr. Smith of Michigan

       Amendment No. 52: At the end of section 183 (page __, 
     beginning line __), insert the following new subsection:
       (d) Payment Limitation Regarding Marketing Assistance Loans 
     to Cover All Producer Gains.--In applying the payment 
     limitation contained in section 1001(2) of the Food Security 
     Act of 1985 (7 U.S.C. 1308(2)) on the total amount of 
     payments and gains that a person may receive for one or more 
     covered commodities during any crop year, the Secretary of 
     Agriculture shall include each of the following:
       (1) Any gain realized by a producer from repaying a 
     marketing assistance loan for a crop of any covered commodity 
     at a lower level than the original loan rate established for 
     the commodity.
       (2) Any loan deficiency payment received for a loan 
     commodity.
       (3) Any gain realized by a producer through the use of the 
     generic certificate authority or through the actual 
     forfeiture of the crop covered by a nonrecourse marketing 
     assistance loan.

                               H.R. 2646

                        Offered By: Mr. Stenholm

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 53: At the end of title I (page 133, after 
     line 13), insert the following new section:

     SEC. __. REPORT ON EFFECT OF CERTAIN FARM PROGRAM PAYMENTS ON 
                   ECONOMIC VIABILITY OF PRODUCERS AND FARMING 
                   INFRASTRUCTURE.

       (a) Review Required.--The Secretary of Agriculture shall 
     conduct a review of the effects that payments under 
     production flexibility contracts and market loss assistance 
     payments have had, and that fixed, decoupled payments and 
     counter-cyclical payments are likely to have, on the economic 
     viability of producers and the farming infrastructure, 
     particularly in areas where climate, soil types, and other 
     agronomic conditions severely limit the covered crops that

[[Page 18395]]

     producers can choose to successfully and profitably produce.
       (b) Case Study Related to Rice Production.--The review 
     shall include a case study of the effects that the payments 
     described in subsection (a), and the forecast effects of 
     increasing these or other decoupled payments, are likely to 
     have on rice producers (including tenant rice producers), the 
     rice milling industry, and the economies of rice farming 
     areas in Texas, where harvested rice acreage has fallen from 
     320,000 acres in 1995 to only 211,000 acres in 2001.
       (c) Report and Recommendations.--Not later than 90 days 
     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 describing the 
     information collected for the review and the case study and 
     any findings made on the basis of such information. The 
     report shall include recommendations for minimizing the 
     adverse effects on producers, with a special focus on 
     producers who are tenants, on the agricultural economies in 
     farming areas generally, on those particular areas described 
     in subsection (a), and on the area that is the subject of the 
     case study in subsection (b).

                               H.R. 2646

                        Offered By: Mr. Stenholm

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 54: In section 167(a), strike paragraphs (4) 
     and (5) (page 119, line 9, through page 120, line 2), and 
     insert the following:
       (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 
     peanut producer through--
       (A) a designated marketing association of peanut producers 
     that is approved by the Secretary; or
       (B) the Farm Service Agency.

                               H.R. 2646

                        Offered By: Mr. Stenholm

   [Page and line numbers refer to the Amendment in the Nature of a 
                        Substitute (Combes.011)]

       Amendment No. 55: Page 213, line 6, strike ``$10 million'' 
     and insert ``$9,500,000''.
       Beginning on page 214, strike line 13 and all that follows 
     through line 6 on page 215, and insert the following:
       (f) Puerto Rico.--Section 19(a)(1) of the Food Stamp Act of 
     1977 (7 U.S.C. 2028(a)(1)) is amended--
       (1) in subparagraph (A)--
       (A) in clause (ii) by striking ``and'' at the end;
       (B) in clause (iii) by adding ``and'' at the end; and
       (C) by inserting after clause (iii) the following:
       ``(iv) for each of fiscal years 2003 through 2011, the 
     amount equal to the amount required to be paid under this 
     subparagraph for the preceding fiscal year, as adjusted by 
     the percentage by which the thrifty food plan is adjusted 
     under section 3(o)(4) for the current fiscal year for which 
     the amount is determined under this clause;''; and
       (2) in subparagraph (B)--
       (A) by inserting ``(i)'' after ``(B)''; and
       (B) by adding at the end the following:
       ``(ii) Notwithstanding subparagraph (A) and clause (i), the 
     Commonwealth may spend up to $6,000,000 of the amount 
     required under subparagraph (A) to be paid for fiscal year 
     2002 to pay 100 percent of the cost to upgrade and modernize 
     the electronic data processing system used to provide such 
     food assistance and to implement systems to simplify the 
     determination of eligibility to receive such assistance.''.
       (g) Territory of American Samoa.--Section 24 of the Food 
     Stamp Act of 1977 (7 U.S.C. 2033) is amended--
       (1) by striking ``Effective October 1, 1995, from'' and 
     inserting ``From''; and
       (2) by striking ``$5,300,000 for each of fiscal years 1996 
     through 2002'' and inserting ``$5,750,000 for fiscal year 
     2002 and $5,800,000 for each of fiscal years 2003 though 
     2011''.
       Page 216, line 18, strike ``(h) and (i) shall take effect 
     of'' and insert ``(g), (h), and (i) shall take effect on''.

                               H.R. 2646

                         Offered By: Mr. Stupak

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 56: At the end of title VIII (page 339, after 
     line 23), insert the following new section:

     SEC. 808. TIMBER SALES FOR UNITS OF THE NATIONAL FOREST 
                   SYSTEM.

       The Secretary of Agriculture and the Chief of the Forest 
     Service shall ensure that, with respect to each unit of the 
     National Forest System, a quantity of timber is offered for 
     sale on an annual basis that, at a minimum, is equal to 
     annual allowable sale quantity of timber specified in the 
     management plan for that unit.

                               H.R. 2646

                         Offered By: Mr. Thune

       Amendment No. 57: At the end of subtitle B of title II, 
     insert the following:

     SEC. 215. EXPANSION OF PILOT PROGRAM TO ALL STATES.

       Section 1231(h) of the Food Security Act of 1985 (16 U.S.C. 
     3831(h)) is amended--
       (1) in paragraph (1), by striking ``and 2002'' and all that 
     follows through ``South Dakota'' and inserting ``through 2011 
     calendar years, the Secretary shall carry out a program in 
     each State'';
       (2) in paragraph (3)(C), by striking ``--'' and all that 
     follows and inserting ``not more than 150,000 acres in any 1 
     State.''; and
       (3) by striking paragraph (2) and redesignating paragraphs 
     (3) through (5) as paragraphs (2) through (4), respectively.

                               H.R. 2646

                         Offered By: Mr. Thune

       Amendment No. 58: Add at the end of title IX the following:

     SEC. 932. GAO STUDY.

       (a) In General.--The Comptroller General shall conduct a 
     study and make findings and recommendations with respect to 
     determining how producer income would be affected by updating 
     yield bases, including--
       (1) whether crop yields have increased over the past 20 
     years for both program crops and oilseeds;
       (2) whether program payments would be disbursed differently 
     in this Act if yield bases were updated;
       (3) what impact this Act's target prices with updated yield 
     bases would have on producer income; and
       (4) what impact lower target prices with updated yield 
     bases would have on producer income compared to this Act.
       (b) Report.--The Comptroller General shall submit a report 
     to Congress on the study, findings, and recommendations 
     required by subsection (a), not later than 6 months after the 
     date of enactment of this Act.

                               H.R. 2646

                         Offered By: Mr. Thune

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, COMBES.011]

       Amendment No. 59: At the end, add the following (and make 
     such technical and conforming changes as may be appropriate):

     SEC. 932. INTERAGENCY TASK FORCE ON AGRICULTURAL COMPETITION.

       (a) Appointment.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary of Agriculture shall 
     establish an Interagency Task Force on Agricultural 
     Competition (in this section referred to as the ``Task 
     Force'') and, after consultation with the Attorney General, 
     shall appoint as members of the Task Force such employees of 
     the Department of Agriculture and the Department of Justice 
     as the Secretary considers to be appropriate. The Secretary 
     shall designate 1 member of the Task Force to serve as 
     chairperson of the Task Force.
       (b) Hearings.--The Task Force shall conduct hearings to 
     review the lessening of competition among purchasers of 
     livestock, poultry, and unprocessed agricultural commodities 
     in the United States and shall include in such hearings 
     review of the following matters:
       (1) The enforcement of particular Federal laws relating to 
     competition.
       (2) The concentration and vertical integration of the 
     business operations of such purchasers.
       (3) Discrimination and transparency in prices paid by such 
     purchasers to producers of livestock, poultry, and 
     unprocessed agricultural commodities in the United States.
       (4) The economic protection and bargaining rights of 
     producers who raise livestock and poultry under contracts.
       (5) Marketing innovations and alternatives available to 
     producers of livestock, poultry, and unprocessed agricultural 
     commodities in the United States.
       (c) Report.--Not later than 1 year after the last member of 
     the Task Force is appointed, the Task Force 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 and 
     recommendations of the Task Force for appropriate 
     administrative and legislative action.

                               H.R. 2646

                         Offered By: Mr. Thune

   [Page and line numbers refer to the amendment in the nature of a 
                        substitute, Combes.011]

       Amendment No. 60: At the end, add the following (and make 
     such technical and conforming changes as may be appropriate):

     SEC. 932. TASK FORCE ON AGRICULTURAL COMPETITION.

       (a) Appointment.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary of Agriculture shall 
     establish an Task Force on Agricultural Competition (in this 
     section referred to as the ``Task Force'') and shall appoint 
     as members of the Task Force such employees of the Department 
     of Agriculture as the Secretary considers to be appropriate. 
     The Secretary shall designate 1 member of the Task Force to 
     serve as chairperson of the Task Force.
       (b) Hearings.--The Task Force shall conduct hearings to 
     review the lessening of competition among purchasers of 
     livestock, poultry, and unprocessed agricultural commodities 
     in the United States and shall include in such hearings 
     review of the following matters:
       (1) The enforcement of particular Federal laws relating to 
     competition.

[[Page 18396]]

       (2) The concentration and vertical integration of the 
     business operations of such purchasers.
       (3) Discrimination and transparency in prices paid by such 
     purchasers to producers of livestock, poultry, and 
     unprocessed agricultural commodities in the United States.
       (4) The economic protection and bargaining rights of 
     producers who raise livestock and poultry under contracts.
       (5) Marketing innovations and alternatives available to 
     producers of livestock, poultry, and unprocessed agricultural 
     commodities in the United States.
       (c) Report.--Not later than 1 year after the last member of 
     the Task Force is appointed, the Task Force 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 and 
     recommendations of the Task Force for appropriate 
     administrative and legislative action.

                               H.R. 2646

                        Offered By: Mr. Tierney

       Amendment No. 61: At the end of the bill, insert the 
     following new section:

     SEC. 932. REPORT REGARDING GENETICALLY ENGINEERED FOODS.

       (a) In General.--Not later than one year after funds are 
     made available to carry out this section, the Secretary of 
     Agriculture, acting through the National Academy of Sciences, 
     shall complete and transmit to Congress a report that 
     includes recommendations for the following:
       (1) Data and tests.--The type of data and tests that are 
     needed to sufficiently assess and evaluate human health risks 
     from the consumption of genetically engineered foods.
       (2) Monitoring system.--The type of Federal monitoring 
     system that should be created to assess any future human 
     health consequences from long-term consumption of genetically 
     engineered foods.
       (3) Regulations.--A Federal regulatory structure to approve 
     genetically engineered foods that are safe for human 
     consumption.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary of Agriculture $500,000 
     to carry out this section.

                               H.R. 2646

                       Offered By: Mr. Traficant

       Amendment No. 62: At the end of title IX (page __, after 
     line __), insert the following new section:

     SEC. __. COMPLIANCE WITH BUY AMERICAN ACT AND SENSE OF 
                   CONGRESS REGARDING PURCHASE OF AMERICAN-MADE 
                   EQUIPMENT, PRODUCTS, AND SERVICES USING FUNDS 
                   PROVIDED UNDER THIS ACT.

       (a) Compliance With Buy American Act.--No funds made 
     available under this Act, whether directly using funds of the 
     Commodity Credit Corporation or pursuant to an authorization 
     of appropriations contained in this Act, may be provided to a 
     producer or other person or entity unless the producer, 
     person, or entity agrees to comply with the Buy American Act 
     (41 U.S.C. 10a-10c) in the expenditure of the funds.
       (b) Sense of Congress.--In the case of any equipment, 
     products, or services that may be authorized to be purchased 
     using funds provided under this Act, it is the sense of 
     Congress that producers and other recipients of such funds 
     should, in expending the funds, purchase only American-made 
     equipment, products, and services.
       (c) Notice to Recipients of Funds.--In providing payments 
     or other assistance under this Act, the Secretary of 
     Agriculture shall provide to each recipient of the funds a 
     notice describing the requirements of subsection (a) and the 
     statement made in subsection (b) by Congress.

                               H.R. 2646

                         Offered By: Mr. Walsh

       Amendment No. 63: At the end of chapter 1 of subtitle C of 
     title I (page 75, after line 17), insert the following new 
     section:

     SEC. 147. STUDY OF NATIONAL DAIRY POLICY.

       (a) Study Required.--Not later than April 30, 2002, the 
     Secretary of Agriculture shall submit to Congress a 
     comprehensive economic evaluation of the potential direct and 
     indirect effects of the various elements of the national 
     dairy policy, including an examination of the effect of the 
     national dairy policy on--
       (1) farm price stability, farm profitability and viability, 
     and local rural economies in the United States;
       (2) child, senior, and low-income nutrition programs, 
     including impacts on schools and institutions participating 
     in the programs, on program recipients, and other factors; 
     and
       (3) the wholesale and retail cost of fluid milk, dairy 
     farms, and milk utilization.
       (b) National Dairy Policy Defined.--In this section, the 
     term ``national dairy policy'' means the dairy policy of the 
     United States as evidenced by the following policies and 
     programs:
       (1) Federal Milk Marketing Orders.
       (2) Interstate dairy compacts (including proposed compacts 
     described in H.R. 1827 and S. 1157, as introduced in the 
     107th Congress).
       (3) Over-order premiums and State pricing programs.
       (4) Direct payments to milk producers.
       (5) Federal milk price support program.
       (6) Export programs regarding milk and dairy products, such 
     as the Dairy Export Incentive Program.

                               H.R. 2646

                         Offered By: Mr. Walsh

       [Page and line numbers refer to the amendment in the 
                nature of a substitute, COMBES.011]

       Amendment No. 64: At the end of chapter 1 of subtitle C of 
     title I (page 75, after line 17), insert the following new 
     section:

     SEC. 147. OVER-ORDER PRICING SYSTEM FOR FLUID MILK.

       Congress hereby finds that dairy farmers, the overall 
     agricultural sector, local farm-dependent economies, and 
     consumers would benefit from an over-order pricing system for 
     fluid milk administered through identical State approved 
     agreements, as referred to in the bill H.R. 1827, as 
     introduced in the 107th Congress, and hereby consents to each 
     of the regional systems set forth in the bill, subject to the 
     condition that the Secretary of Agriculture make a factual 
     determination that there is compelling public interest for 
     the regional system in the States to be served by the 
     regional system. The Secretary shall make the factual 
     determination on a case-by-case basis and, upon making the 
     determination, shall authorize the operation of the regional 
     system in the States to be served by the regional system.

                               H.R. 2646

                  Offered By: Mr. Watkins of Oklahoma

       Amendment No. 65: At the end of title V, insert the 
     following:

     SEC. __. TEMPORARY SUSPENSION OF FORECLOSURE ON CERTAIN REAL 
                   PROPERTY OWNED BY, AND RECOVERY OF CERTAIN 
                   PAYMENTS FROM, BORROWERS WITH SHARED 
                   APPRECIATION ARRANGEMENTS.

       During the period that begins with the date of the 
     enactment of this Act and December 31, 2002, in the case of a 
     borrower who has failed to make a payment required under 
     section 353(e) of the Consolidated Farm and Rural Development 
     Act with respect to real property, the Secretary of 
     Agriculture--
       (1) shall suspend foreclosure on the real property by 
     reason of the failure; and
       (2) may not attempt to recover the payment from the 
     borrower.


             CONGRESSIONAL RECORD 

                United States
                 of America



October 2, 2001